Anderson, R.; Hugoson and Kelso were excused until 11:30 a.m. Dauner was excused until 3:00 p.m.

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

S. F. No. 339 and H. F. No. 856, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Bishop moved that the rules be so far suspended that S. F. No. 339 be substituted for H. F. No. 856 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 529 and H. F. No. 1064, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Johnson, R., moved that the rules be so far suspended that S. F. No. 529 be substituted for H. F. No. 1064 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1019 and H. F. No. 1156, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Long moved that the rules be so far suspended that S. F. No. 1019 be substituted for H. F. No. 1156 and that the House File be indefinitely postponed. The motion prevailed.

The following communications were received:

May 11, 1995

The Honorable Joan Anderson Growe

Secretary of State

The State of Minnesota

Dear Ms. Growe:

It is my honor to inform you that I have allowed House File No. 54 (Chapter 124) to become law without my signature.

H. F. No. 54, relating to state government; directing the governor, attorney general and other public officers to perform certain duties in regard to certain waters and public lands.

With this correspondence, House File No. 54 (Chapter 124) is submitted to you for filing.

Warmest regards,

Arne H. Carlson

Governor

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Act of the 1995 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

                                    Time and          

S.F.         H.F.   Session Laws    Date ApprovedDate Filed

No.           No.    Chapter No.             1995      1995

54** 124 May 11

Sincerely,

Joan Anderson Growe

Secretary of State

** [NOTE: H. F. No. 54 became law without Governor's signature.]

S. F. Nos. 339, 529 and 1019 were read for the second time.

The following House Files were introduced:

Bishop, Pelowski, Bradley and Dorn introduced:

H. F. No. 1912, A bill for an act relating to education; requesting a development plan for a polytechnic institute at the Rochester campus.

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

Tunheim introduced:

H. F. No. 1913, A resolution memorializing the President and Congress to act to resolve the Minnesota-Ontario border dispute regarding game fishing by investigating Minnesotans' rights under the Root/Bryce Treaty.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

Greiling, McGuire, Dawkins, Abrams and Osthoff introduced:

H. F. No. 1914, A bill for an act relating to taxation; reducing the class rates on certain residential property; providing for additional state aid; amending Minnesota Statutes 1994, sections 124.2131, by adding a subdivision; and 273.13, subdivision 25.

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

Tunheim introduced:

H. F. No. 1915, A bill for an act relating to education; reducing school district property taxes; reducing the class rate for certain agricultural property; increasing the income tax; amending Minnesota Statutes 1994, section 124A.23, subdivision 1; 273.13, subdivision 23; 290.06, subdivisions 2c and 2d; and 290.091, subdivisions 1, 2, and 6.

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

Bakk introduced:

H. F. No. 1916, A bill for an act relating to retirement; alternative retirement coverage for certain state university and community college teachers; amending Minnesota Statutes 1994, section 352D.02, by adding a subdivision.

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

Milbert introduced:

H. F. No. 1917, A bill for an act relating to metropolitan government; providing for the financing, organization, and ownership of certain athletic organizations; providing conditions for the use of certain facilities; permitting the issuance of bonds; appropriating money; proposing coding for new law as Minnesota Statutes, chapter 473I.

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

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 16.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Patrick E. Flahaven, Secretary of the Senate

A bill for an act relating to health; modifying provisions relating to the administration and prescription of neuroleptic medications; changing the name of a court in certain circumstances; amending Minnesota Statutes 1994, sections 13.42, subdivision 3; 253B.03, subdivisions 6b and 6c; 253B.05, subdivisions 2 and 3; 253B.12, subdivision 1; and 253B.17, subdivision 1.

May 11, 1995

The Honorable Allan H. Spear

President of the Senate

The Honorable Irv Anderson

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 16, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 16 be further amended as follows:

Page 5, line 32, delete everything after "(k)"

Page 5, delete lines 33 to 35

Page 5, line 36, delete everything before "The"

Page 10, lines 9 to 12, reinstate the stricken language

Page 10, line 13, reinstate everything before the stricken "A"

We request adoption of this report and repassage of the bill.

Senate Conferees: Don Betzold, Sheila M. Kiscaden and Harold R. "Skip" Finn.

House Conferees: Andy Dawkins, Linda Wejcman and Bill Macklin.

Dawkins moved that the report of the Conference Committee on S. F. No. 16 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 16, A bill for an act relating to health; modifying provisions relating to the administration and prescription of neuroleptic medications; changing the name of a court in certain circumstances; amending Minnesota Statutes 1994, sections 13.42, subdivision 3; 253B.03, subdivisions 6b and 6c; 253B.05, subdivisions 2 and 3; 253B.12, subdivision 1; and 253B.17, subdivision 1.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 126 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Krinkie      Opatz        Sviggum
Anderson, B. Garcia       Larsen       Orenstein    Swenson, D.
Bakk         Girard       Leighton     Orfield      Swenson, H.
Bertram      Goodno       Leppik       Osskopp      Sykora
Bettermann   Greenfield   Lieder       Osthoff      Tomassoni
Bishop       Greiling     Lindner      Ostrom       Tompkins
Boudreau     Haas         Long         Otremba      Trimble
Bradley      Hackbarth    Lourey       Ozment       Tuma
Broecker     Harder       Luther       Paulsen      Tunheim
Brown        Hasskamp     Lynch        Pawlenty     Van Dellen
Carlson      Hausman      Macklin      Pellow       Van Engen
Carruthers   Holsten      Mahon        Pelowski     Vickerman
Clark        Huntley      Mares        Perlt        Wagenius
Commers      Jaros        Mariani      Peterson     Warkentin
Cooper       Jefferson    Marko        Pugh         Weaver
Daggett      Johnson, A.  McCollum     Rest         Wejcman
Davids       Johnson, R.  McElroy      Rhodes       Wenzel
Dawkins      Johnson, V.  Milbert      Rostberg     Winter
Dehler       Kahn         Molnau       Rukavina     Wolf
Delmont      Kalis        Mulder       Sarna        Worke
Dempsey      Kelley       Munger       Schumacher   Workman
Dorn         Kinkel       Murphy       Seagren      Sp.Anderson,I
Entenza      Knight       Ness         Simoneau     
Erhardt      Knoblach     Olson, E.    Skoglund     
Farrell      Koppendrayer Olson, M.    Smith        
JOURNAL OF THE HOUSE - 60th Day - Top of Page 4306

Finseth      Kraus        Onnen        Solberg      

Mr. Speaker:

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

S. F. No. 845.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 845, A bill for an act relating to health; MinnesotaCare; expanding provisions of health care; establishing requirements for integrated service networks; modifying requirements for health plan companies; repealing the regulated all-payer option; modifying universal coverage and insurance reform provisions; revising the research and data initiatives; expanding eligibility for the MinnesotaCare program; creating the prescription drug purchasing authority; establishing a drug purchasing benefit program for senior citizens; extending the health care commission and regional coordinating boards; making technical changes; providing penalties; appropriating money; amending Minnesota Statutes 1994, sections 13.99, by adding a subdivision; 16A.724; 60A.02, subdivision 1a; 60B.02; 60B.03, subdivision 2; 60G.01, subdivisions 2, 4, and 5; 62A.10, subdivisions 1 and 2; 62A.65, subdivisions 5 and 8; 62D.042, subdivision 2; 62D.11, subdivision 1; 62D.181, subdivisions 2, 3, 6, and 9; 62E.05; 62E.141; 62H.04; 62H.08; 62J.017; 62J.04, subdivisions 1a and 3; 62J.05, subdivisions 2 and 9; 62J.06; 62J.09, subdivisions 1, 2, 6, 8, and by adding a subdivision; 62J.152, subdivision 5; 62J.17, subdivisions 4a, 6a, and by adding a subdivision; 62J.212; 62J.2913, subdivision 1; 62J.37; 62J.38; 62J.40; 62J.41, subdivisions 1 and 2; 62J.48; 62J.54; 62J.55; 62J.58; 62L.02, subdivisions 11, 16, and 26; 62L.03, subdivisions 3, 4, and 5; 62L.09, subdivision 1; 62L.12, subdivision 2; 62M.02, subdivision 12; 62M.07; 62M.09, subdivision 5; 62M.10, by adding a subdivision; 62N.02, by adding subdivisions; 62N.04; 62N.10, by adding a subdivision; 62N.11, subdivision 1; 62N.13; 62N.14, subdivision 3; 62N.25, subdivision 2; 62P.05, subdivision 4, and by adding a subdivision; 62Q.01, subdivisions 2, 3, 4, and by adding subdivisions; 62Q.03, subdivisions 1, 6, 7, 8, 9, 10, and by adding subdivisions; 62Q.07, subdivisions 1 and 2; 62Q.075, subdivision 4; 62Q.09, subdivision 3; 62Q.11, subdivision 2; 62Q.165; 62Q.17, subdivisions 2, 6, 8, and by adding a subdivision; 62Q.18; 62Q.30; 62Q.32; 62Q.33, subdivisions 4 and 5; 62Q.41; 72A.20, by adding subdivisions; 136A.1355, subdivisions 3 and 5; 136A.1356, subdivisions 3 and 4; 144.1464, subdivisions 2, 3, and 4; 144.147, subdivision 1; 144.1484, subdivision 1; 144.1486, subdivision 4; 144.1489, subdivision 3; 148B.32, subdivision 1; 151.21, subdivisions 2, 3, and by adding a subdivision; 151.48; 214.16, subdivisions 2 and 3; 256.9354, subdivisions 1, 4, 5, and by adding a subdivision; 256.9357, subdivisions 1, 2, and 3; 256.9358, subdivisions 3, 4, and by adding a subdivision; 256.9363, subdivision 5; 256B.037, subdivisions 1, 3, 4, and by adding subdivisions; 256B.04, by adding a subdivision; 256B.055, by adding a subdivision; 256B.057, subdivision 3, and by adding subdivisions; 256B.0625, subdivisions 13 and 30; 256B.69, subdivision 4; 270.101, subdivision 1; 295.50, subdivisions 3, 4, and 10a; 295.53, subdivisions 1, 3, and 4; 295.55, subdivision 4; 295.57; and 295.582; Laws 1990, chapter 591, article 4, section 9; Laws 1994, chapter 625, article 5, sections 5, subdivision 1; 7; and 10, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 16B; 62J; 62L; 62N; 62Q; 256; 256B; and 295; repealing Minnesota Statutes 1994, sections 62J.045; 62J.07, subdivision 4; 62J.09, subdivision 1a; 62J.152, subdivision 6; 62J.19; 62J.30; 62J.31; 62J.32; 62J.33; 62J.34; 62J.35; 62J.41, subdivisions 3 and 4; 62J.44; 62J.45; 62J.65; 62L.08, subdivision 7a; 62N.34; 62P.01; 62P.02; 62P.03; 62P.07; 62P.09; 62P.11; 62P.13; 62P.15; 62P.17; 62P.19; 62P.21; 62P.23; 62P.25; 62P.27; 62P.29; 62P.31; 62P.33; 62Q.03, subdivisions 2, 3, 4, 5, and 11; 62Q.21; 62Q.27; and 256.9353, subdivisions 4 and 5; Laws 1993, chapter 247, article 1, sections 12, 13, 14, 15, 18, and 19; Minnesota Rules, part 4685.1700, subpart 1, item D.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

The following Conference Committee Report was received:

A bill for an act relating to consumer protection; providing warranties for new assistive devices; providing enforcement procedures; proposing coding for new law in Minnesota Statutes, chapter 325G.

May 9, 1995

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 990, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 990 be further amended as follows:

Page 1, line 12, before "used" insert "designed and"

Page 2, line 1, after the period, insert ""Assistive device" does not include a transcutaneous electrical nerve stimulator, neuromuscular electrical stimulator, or dynamic range of motion splint, if the stimulator or splint is already covered by a warranty."

Page 4, line 15, before the period, insert "or replaced"

We request adoption of this report and repassage of the bill.

House Conferees: Matt Entenza, Andy Dawkins and Steven Smith.

Senate Conferees: Ellen R. Anderson, Carol Flynn and Dave Kleis.

Entenza moved that the report of the Conference Committee on H. F. No. 990 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 990, A bill for an act relating to consumer protection; providing warranties for new assistive devices; providing enforcement procedures; proposing coding for new law in Minnesota Statutes, chapter 325G.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 128 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Krinkie      Opatz        Solberg
Anderson, B. Garcia       Larsen       Orenstein    Stanek
Bakk         Girard       Leighton     Orfield      Sviggum
Bertram      Goodno       Leppik       Osskopp      Swenson, D.
Bettermann   Greenfield   Lieder       Osthoff      Swenson, H.
Bishop       Greiling     Lindner      Ostrom       Sykora
Boudreau     Haas         Long         Otremba      Tomassoni
Bradley      Hackbarth    Lourey       Ozment       Tompkins
Broecker     Harder       Luther       Paulsen      Trimble
Brown        Hasskamp     Lynch        Pawlenty     Tuma
Carlson      Hausman      Macklin      Pellow       Tunheim
Carruthers   Holsten      Mahon        Pelowski     Van Dellen
Clark        Huntley      Mares        Perlt        Van Engen
Commers      Jaros        Mariani      Peterson     Vickerman
Cooper       Jefferson    Marko        Pugh         Wagenius
Daggett      Johnson, A.  McCollum     Rest         Warkentin
JOURNAL OF THE HOUSE - 60th Day - Top of Page 4308

Davids       Johnson, R.  McElroy      Rhodes       Weaver
Dawkins      Johnson, V.  Milbert      Rice         Wejcman
Dehler       Kahn         Molnau       Rostberg     Wenzel
Delmont      Kalis        Mulder       Rukavina     Winter
Dempsey      Kelley       Munger       Sarna        Wolf
Dorn         Kinkel       Murphy       Schumacher   Worke
Entenza      Knight       Ness         Seagren      Workman
Erhardt      Knoblach     Olson, E.    Simoneau     Sp.Anderson,I
Farrell      Koppendrayer Olson, M.    Skoglund     
Finseth      Kraus        Onnen        Smith        

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

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

Carruthers, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon immediately preceding printed Special Orders for today:

S. F. Nos. 1246, 537, 538, 1290 and 732.

S. F. No. 1246 was reported to the House.

Orenstein moved to amend S. F. No. 1246, the unofficial engrossment, as follows:

Page 52, after line 27, insert:

"(3) a recommendation for guidelines which will prevent any employee engaged in the performance of investigative or advocating functions for an agency in a case before the commission from, in that case or a factually related case, participating or advising in the decision of the commission, except as a witness or counsel in public proceedings;"

Renumber the clauses in section 2 in sequence

Correct any internal cross-references

The motion prevailed and the amendment was adopted.

Sviggum moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 60, delete lines 10 to 16

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 Sviggum amendment and the roll was called. There were 63 yeas and 68 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Frerichs     Krinkie      Osskopp      Sykora
Bettermann   Girard       Larsen       Ozment       Tompkins
Bishop       Goodno       Leppik       Paulsen      Tuma
Boudreau     Haas         Lindner      Pawlenty     Van Dellen
Bradley      Hackbarth    Lynch        Pellow       Van Engen
Broecker     Harder       Macklin      Rhodes       Vickerman
Commers      Holsten      Mares        Rostberg     Warkentin
Daggett      Hugoson      McElroy      Seagren      Weaver
Davids       Johnson, V.  Molnau       Smith        Wolf
Dehler       Knight       Mulder       Stanek       Worke
Dempsey      Knoblach     Ness         Sviggum      Workman 
Erhardt      Koppendrayer Olson, M.    Swenson, D.  
Finseth      Kraus        Onnen        Swenson, H.  

Abrams       Garcia       Kinkel       Olson, E.    Schumacher
Anderson, R. Greenfield   Leighton     Opatz        Simoneau
Bakk         Greiling     Lieder       Orenstein    Skoglund
Bertram      Hasskamp     Long         Orfield      Solberg
Brown        Hausman      Lourey       Osthoff      Tomassoni
Carlson      Huntley      Luther       Ostrom       Trimble
Carruthers   Jefferson    Mahon        Otremba      Tunheim
Clark        Jennings     Mariani      Pelowski     Wagenius
Cooper       Johnson, A.  Marko        Perlt        Wejcman
Dawkins      Johnson, R.  McCollum     Peterson     Wenzel
Delmont      Kahn         McGuire      Pugh         Winter
Dorn         Kalis        Milbert      Rest         Sp.Anderson,I
Entenza      Kelley       Munger       Rukavina     
Farrell      Kelso        Murphy       Sarna        

Sviggum moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 55, after line 18, insert:

"Section 1. [REDUCTION.]

In the last quarterly reporting period for the biennium ending June 30, 1997, the number of full-time equivalent state agency employees must be at least one percent less than the number of full-time equivalent state agency employees in the last quarterly reporting period for the biennium ending June 30, 1995. For purposes of this section, the number of full-time equivalent employees is as determined in the quarterly work force reports prepared by the commissioner of finance under Minnesota Statutes, section 16A.122."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Orenstein moved to amend the Sviggum amendment to S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 1, line 6, after "equivalent" insert "non- academic unclassified"

Page 1, line 7, delete "one" and insert "five"

Page 1, line 8, after "agency" insert "non-academic unclassified"

Page 1, line 11, after "equivalent" insert "non- academic unclassified"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 67 yeas and 65 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Greenfield   Lieder       Orenstein    Simoneau
Bakk         Greiling     Long         Orfield      Skoglund
Bertram      Hasskamp     Lourey       Osthoff      Solberg
Brown        Hausman      Luther       Ostrom       Tomassoni
Carlson      Huntley      Mahon        Otremba      Trimble
Carruthers   Jaros        Mariani      Pelowski     Tunheim
Clark        Jefferson    Marko        Perlt        Wagenius
Cooper       Johnson, A.  McCollum     Peterson     Wejcman
Dawkins      Kahn         McGuire      Pugh         Wenzel
Delmont      Kalis        Milbert      Rest         Winter
Dorn         Kelley       Munger       Rice         Sp.Anderson,I
Entenza      Kelso        Murphy       Rukavina     
Farrell      Kinkel       Olson, E.    Sarna        
Garcia       Leighton     Opatz        Schumacher   

Abrams       Finseth      Knoblach     Ness         Swenson, D.
Anderson, B. Frerichs     Koppendrayer Olson, M.    Swenson, H.
Bettermann   Girard       Kraus        Onnen        Sykora
Bishop       Goodno       Krinkie      Osskopp      Tompkins
Boudreau     Haas         Larsen       Paulsen      Tuma
Bradley      Hackbarth    Leppik       Pawlenty     Van Dellen
Broecker     Harder       Lindner      Pellow       Van Engen
Commers      Holsten      Lynch        Rhodes       Vickerman
Daggett      Hugoson      Macklin      Rostberg     Warkentin
Davids       Jennings     Mares        Seagren      Weaver
Dehler       Johnson, R.  McElroy      Smith        Wolf
Dempsey      Johnson, V.  Molnau       Stanek       Worke
Erhardt      Knight       Mulder       Sviggum      Workman 

Sviggum moved to amend the Sviggum amendment, as amended, to S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 1, lines 6, 8, and 11, after "unclassified" insert "and classified"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment, as amended, and the roll was called. There were 62 yeas and 70 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Krinkie      Osskopp      Tompkins
Anderson, B. Girard       Larsen       Paulsen      Tuma
Bettermann   Goodno       Leppik       Pawlenty     Van Dellen
Bishop       Haas         Lindner      Pellow       Van Engen
Boudreau     Hackbarth    Lynch        Rhodes       Vickerman
Bradley      Harder       Macklin      Rostberg     Warkentin
Broecker     Holsten      Mares        Seagren      Weaver
Commers      Hugoson      McElroy      Smith        Wolf
JOURNAL OF THE HOUSE - 60th Day - Top of Page 4311

Daggett      Johnson, V.  Molnau       Stanek       Worke
Davids       Knight       Mulder       Sviggum      Workman 
Dehler       Knoblach     Ness         Swenson, D.  
Erhardt      Koppendrayer Olson, M.    Swenson, H.  
Finseth      Kraus        Onnen        Sykora       

Anderson, R. Greenfield   Leighton     Orenstein    Skoglund
Bakk         Greiling     Lieder       Orfield      Solberg
Bertram      Hasskamp     Long         Osthoff      Tomassoni
Brown        Hausman      Lourey       Ostrom       Trimble
Carlson      Huntley      Luther       Otremba      Tunheim
Carruthers   Jaros        Mahon        Ozment       Wagenius
Clark        Jefferson    Mariani      Pelowski     Wejcman
Cooper       Jennings     Marko        Perlt        Wenzel
Dawkins      Johnson, A.  McCollum     Peterson     Winter
Delmont      Johnson, R.  McGuire      Pugh         Sp.Anderson,I
Dempsey      Kahn         Milbert      Rest         
Dorn         Kalis        Munger       Rice         
Entenza      Kelley       Murphy       Rukavina     
Farrell      Kelso        Olson, E.    Sarna        
Garcia       Kinkel       Opatz        Simoneau     

The question recurred on the Sviggum amendment, as amended, and the roll was called. There were 61 yeas and 72 nays as follows:

Those who voted in the affirmative were:

Bakk         Greiling     Leighton     Murphy       Rukavina
Bertram      Hasskamp     Lieder       Olson, E.    Schumacher
Brown        Hausman      Long         Olson, M.    Solberg
Carlson      Huntley      Lourey       Opatz        Tomassoni
Carruthers   Jaros        Luther       Orenstein    Trimble
Clark        Jefferson    Mahon        Orfield      Tunheim
Cooper       Johnson, A.  Mariani      Osthoff      Wejcman
Delmont      Kahn         Marko        Ostrom       Wenzel
Dorn         Kalis        McCollum     Otremba      Winter 
Entenza      Kelley       McElroy      Pelowski     
Farrell      Kinkel       McGuire      Peterson     
Garcia       Kraus        Milbert      Pugh         
Greenfield   Krinkie      Munger       Rest         

Abrams       Finseth      Koppendrayer Pellow       Tompkins
Anderson, B. Frerichs     Larsen       Perlt        Tuma
Anderson, R. Girard       Leppik       Rhodes       Van Dellen
Bettermann   Goodno       Lindner      Rice         Van Engen
Bishop       Haas         Lynch        Rostberg     Vickerman
Boudreau     Hackbarth    Macklin      Sarna        Wagenius
Bradley      Harder       Mares        Seagren      Warkentin
Broecker     Holsten      Molnau       Simoneau     Weaver
Commers      Hugoson      Mulder       Skoglund     Wolf
Daggett      Jennings     Ness         Smith        Worke
Davids       Johnson, R.  Onnen        Stanek       Workman
Dawkins      Johnson, V.  Osskopp      Sviggum      Sp.Anderson,I
Dehler       Kelso        Ozment       Swenson, D.  
Dempsey      Knight       Paulsen      Swenson, H.  
Erhardt      Knoblach     Pawlenty     Sykora       

Hugoson was excused between the hours of 12:55 p.m. and 3:30 p.m.

Koppendrayer offered an amendment to S. F. No. 1246, the unofficial engrossment, as amended.

Carlson raised a point of order pursuant to rule 3.10 that the Koppendrayer amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Knight moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Pages 14 to 16, delete sections 1 and 2 of article 8

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 62 yeas and 69 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Larsen       Osskopp      Tompkins
Anderson, B. Girard       Leppik       Paulsen      Tuma
Bettermann   Goodno       Lindner      Pawlenty     Van Dellen
Bishop       Haas         Lynch        Pellow       Van Engen
Boudreau     Hackbarth    Macklin      Rhodes       Vickerman
Bradley      Harder       Mares        Rostberg     Warkentin
Broecker     Holsten      McElroy      Seagren      Weaver
Commers      Johnson, V.  Molnau       Smith        Wolf
Daggett      Knight       Mulder       Stanek       Worke
Davids       Knoblach     Munger       Sviggum      Workman 
Dehler       Koppendrayer Ness         Swenson, D.  
Erhardt      Kraus        Olson, M.    Swenson, H.  
Finseth      Krinkie      Onnen        Sykora       

Anderson, R. Garcia       Kelso        Olson, E.    Sarna
Bakk         Greenfield   Kinkel       Opatz        Schumacher
Bertram      Greiling     Leighton     Orenstein    Simoneau
Brown        Hasskamp     Lieder       Osthoff      Skoglund
Carlson      Hausman      Long         Ostrom       Solberg
Carruthers   Huntley      Lourey       Otremba      Tomassoni
Clark        Jaros        Luther       Ozment       Trimble
Cooper       Jefferson    Mahon        Pelowski     Tunheim
Dawkins      Jennings     Mariani      Perlt        Wagenius
Delmont      Johnson, A.  Marko        Peterson     Wejcman
Dempsey      Johnson, R.  McCollum     Pugh         Wenzel
Dorn         Kahn         McGuire      Rest         Winter
Entenza      Kalis        Milbert      Rice         Sp.Anderson,I
Farrell      Kelley       Murphy       Rukavina     

Orenstein moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 52, delete lines 7 to 10

Page 52, delete "4" and insert "3"

Page 53, after line 10, insert:

"(8) recommendations regarding the transfer of intervention staff to the Attorney General's Office."

The motion prevailed and the amendment was adopted.

Girard moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 51, delete line 24 to page 53, line 24 and insert:

Section 1. [OFFICE OF ATTORNEY GENERAL CERTAIN STATUTORY RESPONSIBILITIES ABOLISHED; RESPONSIBILITIES TRANSFERRED.]

Subdivision 1. [ATTORNEY GENERAL; RESPONSIBILITIES TRANSFERRED.] The responsibilities of the office of attorney general under Minnesota Statutes, section 8.33, are abolished. The responsibilities held by the office under Minnesota Statutes, section 8.33, are transferred to a new agency as designated in this article. Except as otherwise provided by this article, the responsibilities of the office must be transferred under Minnesota Statutes, section 15.039. For purposes of this article, "responsibilities" means the powers, duties, rights, obligations, rules, court actions, contracts, records, property of every description, unexpended funds, and authority imposed by law on the office of attorney general under Minnesota Statutes, section 8.33. For the purpose of this article, "new agency" has the meaning given it in Minnesota Statutes, section 15.039, subdivision 1.

Subd. 2. [DEPARTMENT OF PUBLIC SERVICE.] All responsibilities of the office of attorney general under Minnesota Statutes, section 8.33, are transferred to the department of public service.

Sec. 2. Minnesota Statutes 1994, section 8.33, is amended to read:

8.33 [REPRESENTATION OF CONSUMER AND SMALL BUSINESS INTEREST IN PUBLIC UTILITY MATTERS.]

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

(1) "Public utility" means a publicly or privately owned entity engaged in supplying utility services to residential utility consumers in this state or to another public utility for ultimate distribution to residential utility consumers in this state and whose rates or charges are subject to approval by the public utilities commission or an agency of the federal government. No municipal or cooperative utility shall be considered a "public utility" for the purposes of this clause.

(2) "Residential and small business utility consumer" or "consumer" means a person or small business that uses utility services at the person's residence or business location in this state and who is billed by or pays a public utility for these services. Small business has the meaning given it in section 645.445.

(3) "Utility services" means electricity, natural gas, or telephone services distributed to residential utility consumers by a public utility.

Subd. 2. [DUTIES.] The attorney general department of public service is responsible for representing and furthering the interests of residential and small business utility consumers through participation in matters before the public utilities commission involving utility rates and adequacy of utility services to residential or small business utility consumers. The attorney general department of public service shall expend a reasonable portion of effort among all three kinds of utility services and shall identify and promote the needs of each class of residential and small business consumers with respect to each of the utility services.

Subd. 3. [RIGHT OF INTERVENTION.] Subject to the limitations of subdivision 2, the attorney general department of public service may intervene as of right or participate as an interested party in matters pending before the public utilities commission which affect the distribution by a public utility of utility services to residential or small business utility consumers. The right of the attorney general department of public service to participate or intervene does not affect the obligation of the public utilities commission to protect the public interest.

Subd. 4. [NOTICE; PROCEDURES.] The public utilities commission shall give reasonable notice to the attorney general department of public service of any matter scheduled to come before the commission affecting a public utility's rates or adequacy of services to residential or small business utility consumers. Rules of the commission governing procedures before the commission apply to the attorney general department of public service and the attorney general's department of public service's employees or representatives. The attorney general department of public service has the same rights and privileges accorded other intervenors or participants in matters pending before the commission.

Subd. 5. [APPEALS.] The attorney general department of public service has an interest sufficient to maintain, intervene as of right in, or otherwise participate in any civil action in the courts of this state for the review or enforcement of any public utilities commission action which affects a public utility's rates or adequacy of service to residential or small business utility consumers.

Subd. 6. [INTERVENTION IN FEDERAL PROCEEDINGS.] The attorney general department of public service shall represent and further the interests of residential and small business utility consumers through participation as an intervenor or interested party in federal proceedings relating to the regulation of: (a) wholesale rates for energy

delivered through interstate facilities; or (b) fuel used in generation of electricity or the manufacture of gas. The attorney general department of public service may maintain, intervene in, or otherwise participate in civil actions relating to the federal proceedings.

Subd. 7. [ADDITIONAL POWERS.] The power granted by this section is in addition to powers otherwise provided by law to the attorney general.

Sec. 3. [REVISOR INSTRUCTION.]

The revisor of statutes shall recodify Minnesota Statutes, section 8.33, as part of Minnesota Statutes, chapter 216B."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

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

McElroy moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 53, line 7, delete "and"

Page 53, line 10, delete the period, and insert "; and"

Page 53, after line 10, insert:

"(8) recommendations regarding transferring the ethanol program in the department of public service to the department of agriculture."

Correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

The Speaker called Long to the Chair.

Sviggum moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Pages 57 to 66, delete article 15 and insert:

Section 1. Minnesota Statutes 1994, section 3.846, subdivision 2, is amended to read:

Subd. 2. [NOTICE.] The notice must be published in the State Register and filed with the secretary of state and the legislative commission to review administrative rules. The notice must contain a citation to the statutory authority for the exempt rule and either: (1) a copy of the rule; or (2) a description of the nature and effect of the rule and an announcement that a free copy of the rule is available from the agency on request.

Sec. 2. Minnesota Statutes 1994, section 14.131, is amended to read:

14.131 [STATEMENT OF NEED AND REASONABLENESS.]

Before the agency orders the publication of a rulemaking notice required by section 14.14, subdivision 1a, the agency must prepare, review, and make available for public review a statement of the need for and reasonableness

of the rule and a fiscal note if required by section 3.982. The statement of need and reasonableness must be prepared under rules adopted by the chief administrative law judge.

The agency shall send a copy of the statement of need and reasonableness to the legislative commission to review administrative rules when it becomes available for public review.

Sec. 3. Minnesota Statutes 1994, section 14.15, subdivision 4, is amended to read:

Subd. 4. [NEED OR REASONABLENESS NOT ESTABLISHED.] If the chief administrative law judge determines that the need for or reasonableness of the rule has not been established pursuant to in accordance with section 14.14, subdivision 2, and if the agency does not elect to follow the suggested actions of the chief administrative law judge to correct that defect, then the agency shall submit the proposed rule to the legislative commission to review administrative rules appropriate committees of the house of representatives and the senate for the commission's committees' advice and comment. The agency shall may not adopt the rule until it has received and considered the advice of the commission committees. However, the agency is not required to delay adoption longer than 30 days after the commission has committees have received the agency's submission. Advice of the commission shall committees is not be binding on the agency.

Sec. 4. Minnesota Statutes 1994, section 14.19, is amended to read:

14.19 [DEADLINE TO COMPLETE RULEMAKING.]

The agency shall, within 180 days after issuance of the administrative law judge's report, shall submit its notice of adoption, amendment, suspension, or repeal to the State Register for publication. If the agency has not submitted its notice to the State Register within 180 days, the rule is automatically withdrawn. The agency shall may not adopt the withdrawn rules without again following the procedures of sections 14.05 to 14.36. It shall report to the legislative commission to review administrative rules, other appropriate committees of the legislature, and the governor its failure to adopt rules and the reasons for that failure. The 180-day time limit of this section does not include any days used for review by the chief administrative law judge, or the attorney general, or the legislative commission to review administrative rules if the review is required by law.

Sec. 5. Minnesota Statutes 1994, section 14.23, is amended to read:

14.23 [STATEMENT OF NEED AND REASONABLENESS.]

Before the date of the section 14.22 notice, the agency shall prepare a statement of need and reasonableness, which shall must be available to the public. For at least 30 days following the notice, the agency shall afford all interested persons an opportunity to request a public hearing and to submit data and views on the proposed rule in writing.

The agency shall send a copy of the statement of need and reasonableness to the legislative commission to review administrative rules when it becomes available to the public.

Sec. 6. Minnesota Statutes 1994, section 14.26, is amended to read:

14.26 [ADOPTION OF PROPOSED RULE; SUBMISSION TO ATTORNEY GENERAL.]

Subdivision 1. [SUBMISSION.] If no hearing is required, the agency shall submit to the attorney general the proposed rule and notice as published, the rule as proposed for adoption, any written comments received by the agency, and a statement of need and reasonableness for the rule. The agency shall give notice to all persons who requested to be informed that these materials have been submitted to the attorney general. This notice shall must be given on the same day that the record is submitted. If the proposed rule has been modified, the notice shall must state that fact, and shall must state that a free copy of the proposed rule, as modified, is available upon request from the agency. The rule and these materials shall must be submitted to the attorney general within 180 days of the day that the comment period for the rule is over or the rule is automatically withdrawn. The agency shall report its failure to adopt the rules and the reasons for that failure to the legislative commission to review administrative rules, other appropriate legislative committees, and the governor.

Subd. 2. [RESUBMISSION.] Even if the 180-day period expires while the attorney general reviews the rule, if the attorney general rejects the rule, the agency may resubmit it after taking corrective action. The resubmission must occur within 30 days of when the agency receives written notice of the disapproval. If the rule is again disapproved,

the rule is withdrawn. An agency may resubmit at any time before the expiration of the 180-day period. If the agency withholds some of the proposed rule, it may not adopt the withheld portion without again following the procedures of sections 14.14 to 14.28, or 14.29 to 14.36.

Subd. 3. [REVIEW.] The attorney general shall approve or disapprove the rule as to its legality and its form to the extent the form relates to legality, including the issue of substantial change, and determine whether the agency has the authority to adopt the rule and whether the record demonstrates a rational basis for the need for and reasonableness of the proposed rule within 14 days. If the rule is approved, the attorney general shall promptly file two copies of it in the office of the secretary of state. The secretary of state shall forward one copy of each rule to the revisor of statutes. If the rule is disapproved, the attorney general shall state in writing the reasons and make recommendations to overcome the deficiencies, and the rule shall may not be filed in the office of the secretary of state, nor published until the deficiencies have been overcome. The attorney general shall send a statement of reasons for disapproval of the rule to the agency, the chief administrative law judge, the legislative commission to review administrative rules, and to the revisor of statutes.

The attorney general shall disregard any error or defect in the proceeding due to the agency's failure to satisfy any procedural requirements imposed by law or rule if the attorney general finds:

(1) that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process; or

(2) that the agency has taken corrective action to cure the error or defect so that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process.

Subd. 4. [COSTS.] The attorney general shall assess an agency for the actual cost of processing rules under this section. The agency shall pay the attorney general's assessments using the procedures of section 8.15. Each agency shall include in its budget money to pay the attorney general's assessment. Receipts from the assessment must be deposited in the state treasury and credited to the general fund.

Sec. 7. Minnesota Statutes 1994, section 14.32, subdivision 2, is amended to read:

Subd. 2. [REVIEW.] The attorney general shall review the proposed emergency rule as to its legality, review its form to the extent the form relates to legality, and shall approve or disapprove the proposed emergency rule and any modifications on the tenth working day following the date of receipt of the proposed emergency rule from the agency. The attorney general shall send a statement of reasons for disapproval of the rule to the agency, the chief administrative law judge, the legislative commission to review administrative rules, and to the revisor of statutes.

The attorney general shall disregard any error or defect in the proceeding due to the agency's failure to satisfy any procedural requirement imposed by law or rule if the attorney general finds:

(1) that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process; or

(2) that the agency has taken corrective action to cure the error or defect so that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process.

Sec. 8. Minnesota Statutes 1994, section 14.47, subdivision 3, is amended to read:

Subd. 3. [SOURCE OF TEXT.] In order to ensure that the complete text of rules is included in the first compilation published pursuant to in accordance with subdivision 1, clause (2), and containing the revisor's certificate, the revisor may use the Minnesota Code of Agency Rules, the State Register, the rule files of the secretary of state, the files of individual agencies, the records of the administrative law judge's office, and the records of the attorney general. The revisor is not required to compare the text of a rule as shown by the other possible source documents with the text of the rule in the secretary of state's file.

If any comparison of documents shows there is a material discrepancy in the text of the rule, the revisor shall include in Minnesota Rules the text in the secretary of state's files unless the discrepancy between the secretary of state's files and any of the other documents is the result of an obvious unintentional omission or clerical error. The text published by the revisor shall must correct those omissions and errors. The revisor shall add an appropriate footnote describing the apparent discrepancy in text. Before publication of Minnesota Rules, the revisor shall also notify the agency whose rules are affected, the attorney general, and the chief administrative law judge, and the legislative commission to review administrative rules about the omission or error.

If any comparison of documents shows that a rule has been filed with the secretary of state but apparently has not been published in the State Register as required by law, the revisor may, unless the attorney general objects, include the rule in Minnesota Rules or omit the rule if the rule was a repeal, but shall add an appropriate footnote describing the apparent fault. Before publication of Minnesota Rules, the revisor shall notify the agency whose rules are affected, the attorney general, and the chief administrative law judge, and the legislative commission to review administrative rules about the apparent lack of publication.

If a comparison of documents shows that a rule as adopted in the State Register has apparently not been filed with the secretary of state, the revisor may not publish the rule in Minnesota Rules unless the attorney general approves the publication. Before publication of Minnesota Rules the revisor shall notify the agency affected, the attorney general, and the chief administrative law judge and the legislative commission to review administrative rules of the apparent lack of filing of the rule. If the revisor publishes the rule, the revisor shall add an appropriate footnote describing the apparent lack of filing.

Sec. 9. Minnesota Statutes 1994, section 14.47, subdivision 6, is amended to read:

Subd. 6. [OMISSION OF TEXT.] (a) For purposes of any compilation or publication of the rules, the revisor, unless the attorney general objects, may omit any extraneous descriptive or informative text which that is not an operative portion of the rule. The revisor may also omit effective date provisions, statements that a rule is repealed, prefaces, appendices, guidelines, organizational descriptions, explanations of federal or state law, and similar material. The revisor shall consult with the agency, the attorney general, the legislative commission to review administrative rules, and with the chief administrative law judge before omitting any text from publication.

(b) For the purposes of any compilation or publication of the rules, the revisor, unless the attorney general objects, may omit any rules that, by their own terms, are no longer effective or have been repealed directly by the agency, repealed by the legislature, or declared unconstitutional or otherwise void by a court of last resort. The revisor shall may not remove a rule which that is suspended and not fully repealed, but shall, if practicable, note the fact of suspension in Minnesota Rules. The revisor shall consult the agency involved, the attorney general, and the chief administrative law judge, and the legislative commission to review administrative rules before omitting a rule from publication.

Sec. 10. Minnesota Statutes 1994, section 14.47, subdivision 8, is amended to read:

Subd. 8. [SALES AND DISTRIBUTION OF COMPILATION.] Any compilation, reissue, or supplement published by the revisor shall must be sold by the revisor for a reasonable fee and its proceeds deposited in the general fund. An agency shall purchase from the revisor the number of copies of the compilation or supplement needed by the agency. The revisor shall provide without charge copies of each edition of any compilation, reissue, or supplement to the persons or bodies listed in this subdivision. Those copies must be marked with the words "State Copy" and kept for the use of the office. The revisor shall distribute:

(a) 25 copies to the office of the attorney general;

(b) 12 copies for the legislative commission for review of administrative rules;

(c) 3 copies to the revisor of statutes for transmission to the Library of Congress for copyright and depository purposes;

(d) (c) 150 copies to the state law library;

(e) (d) 10 copies to the law school of the University of Minnesota; and

(f) (e) one copy of any compilation or supplement to each county library maintained pursuant to under section 134.12 upon its request, except in counties containing cities of the first class. If a county has not established a county library pursuant to under section 134.12, the copy will must be provided to any public library in the county upon its request.

Sec. 11. Minnesota Statutes 1994, section 62J.04, subdivision 1a, is amended to read:

Subd. 1a. [ADJUSTED GROWTH LIMITS AND ENFORCEMENT.] (a) The commissioner shall publish the final adjusted growth limit in the State Register by January 31 of the year that the expenditure limit is to be in effect. The adjusted limit must reflect the actual regional consumer price index for urban consumers for the previous calendar

year, and may deviate from the previously published projected growth limits to reflect differences between the actual regional consumer price index for urban consumers and the projected Consumer Price Index for urban consumers. The commissioner shall report to the legislature by February 15 of each year on differences between the projected increase in health care expenditures, the actual expenditures based on data collected, and the impact and validity of growth limits within the overall health care reform strategy.

(b) The commissioner shall enforce limits on growth in spending and revenues for integrated service networks and for the regulated all-payer option. If the commissioner determines that artificial inflation or padding of costs or prices has occurred in anticipation of the implementation of growth limits, the commissioner may adjust the base year spending totals or growth limits or take other action to reverse the effect of the artificial inflation or padding.

(c) The commissioner shall impose and enforce overall limits on growth in revenues and spending for integrated service networks, with adjustments for changes in enrollment, benefits, severity, and risks. If an integrated service network exceeds the growth limits, the commissioner may reduce future limits on growth in aggregate premium revenues for that integrated service network by up to the amount overspent. If the integrated service network system exceeds a systemwide spending limit, the commissioner may reduce future limits on growth in premium revenues for the integrated service network system by up to the amount overspent.

(d) The commissioner shall set prices, utilization controls, and other requirements for the regulated all-payer option to ensure that the overall costs of this system, after adjusting for changes in population, severity, and risk, do not exceed the growth limits. If growth limits for a calendar year are exceeded, the commissioner may reduce reimbursement rates or otherwise recoup amounts exceeding the limit for all or part of the next calendar year. To the extent possible, the commissioner may reduce reimbursement rates or otherwise recoup amounts over the limit from individual providers who exceed the growth limits.

(e) The commissioner, in consultation with the Minnesota health care commission, shall research and make recommendations to the legislature regarding the implementation of growth limits for integrated service networks and the regulated all-payer option. The commissioner must shall consider both spending and revenue approaches and will report on the implementation of the interim limits as defined in sections 62P.04 and 62P.05. The commissioner must shall examine and make recommendations on the use of annual update factors based on volume performance standards as a mechanism for achieving controls on spending in the all-payer option. The commissioner must shall make recommendations regarding the enforcement mechanism and must shall consider mechanisms to adjust future growth limits as well as mechanisms to establish financial penalties for noncompliance. The commissioner must shall also address the feasibility of systemwide limits imposed on all integrated service networks.

(f) The commissioner shall report to the legislative commission on health care access by December 1, 1994, on trends in aggregate spending and premium revenue for health plan companies. The commissioner shall use data submitted under section 62P.04 and other available data to complete this report.

Sec. 12. Minnesota Statutes 1994, section 62J.04, subdivision 9, is amended to read:

Subd. 9. [GROWTH LIMITS; FEDERAL PROGRAMS.] The commissioners of health and human services shall establish a rate methodology for Medicare and Medicaid risk-based contracting with health plan companies that is consistent with statewide growth limits. The methodology shall be presented for review by the Minnesota health care commission and the legislative commission on health care access prior to the submission of a waiver request to the health care financing administration and subsequent implementation of the methodology.

Sec. 13. Minnesota Statutes 1994, section 62Q.33, subdivision 5, is amended to read:

Subd. 5. [TIMELINE.] (a) By October 1, 1994, the commissioner shall submit to the legislative commission on health care access the initial report and recommendations required by subdivisions 2 to 4.

(b) By February 15, 1995, the commissioner, in cooperation with the legislative commission on health care access, shall submit a final report to the legislature, with specific recommendations for capacity building and financing to be implemented over the period from January 1, 1996, through December 31, 1997.

(c) (b) By January 1, 1997, and by January 1 of each odd-numbered year thereafter, the commissioner shall present to the legislature an updated report and recommendations.

Sec. 14. Minnesota Statutes 1994, section 85.019, subdivision 2, is amended to read:

Subd. 2. [GRANTS FOR PARKS AND TRAILS.] The commissioner shall administer a program to provide grants to units of government located within standard metropolitan statistical areas, as designated by the United States Office of Management and Budget, but outside of the metropolitan area defined in section 473.121. The grants shall must be for acquisition and betterment by units of government of public land and improvements needed for parks, trails, conservatories, zoos, and other special use facilities having recreational significance for the entire population of the particular standard metropolitan statistical area. Appropriations made for this purpose shall must be expended with the approval of the governor after consultation with the legislative advisory commission. The legislative commission on division of Minnesota resources shall make recommendations to the legislative advisory commission regarding the expenditures. The local contribution required shall be not less than ten percent. The program shall must be administered so as to ensure the maximum possible use of available federal money.

Sec. 15. Minnesota Statutes 1994, section 115A.07, subdivision 3, is amended to read:

Subd. 3. [UNIFORM WASTE STATISTICS; RULES.] The director, after consulting with the commissioner, the metropolitan council, local government units, and other interested persons, may adopt rules to establish uniform methods for collecting and reporting waste reduction, generation, collection, transportation, storage, recycling, processing, and disposal statistics necessary for proper waste management and for reporting required by law. Prior to publishing proposed rules, the director shall submit draft rules to the legislative commission on waste management for review and comment. Rules adopted under this subdivision apply to all persons and units of government in the state for the purpose of collecting and reporting waste-related statistics requested under or required by law.

Sec. 16. Minnesota Statutes 1994, section 115A.15, subdivision 5, is amended to read:

Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered year, the commissioner of administration shall submit a report to the governor and to the legislative commission summarizing past activities and proposed goals of the program for the following biennium. The report shall include at least:

(1) a summary list of product and commodity purchases that contain recycled materials;

(2) the results of any performance tests conducted on recycled products and agencies' experience with recycled products used;

(3) a list of all organizations participating in and using the cooperative purchasing program; and

(4) a list of products and commodities purchased for their recyclability and of recycled products reviewed for purchase.

(b) By July 1 of each even-numbered year, the commissioner of the pollution control agency and the commissioner of public service shall submit recommendations to the commissioner regarding the operation of the program.

Sec. 17. Minnesota Statutes 1994, section 115A.158, subdivision 2, is amended to read:

Subd. 2. [PROCEDURE; EVALUATION; REPORT.] In requesting proposals, the office shall inform potential developers of the assistance available to them in siting and establishing hazardous waste processing and collection facilities and services in the state and improved industrial waste management in the state, including the availability of sites listed on the office's inventory of preferred areas for hazardous waste processing facilities, the authority of the office to acquire sites and order the establishment of facilities in those areas, the policies and objectives of the hazardous waste management plan, and the availability of information developed by the office on hazardous or industrial waste generation and management in the state.

The office shall evaluate the proposals received in response to its request and determine the extent to which the proposals demonstrate the qualifications of the developers, the technical and economic feasibility of the proposed facility or service, and the extent to which the proposed facility or service will contribute in a significant way to the achievement of the policies and objectives of the hazardous waste management plan.

The office shall report to the legislative commission on the proposals that it has received and evaluated, and on the legislative, regulatory, and other actions needed to develop and operate the proposed facilities or services.

Sec. 18. Minnesota Statutes 1994, section 115A.165, is amended to read:

115A.165 [EVALUATION OF GRANT AND LOAN PROGRAMS; REPORT.]

By November 1 of each even-numbered year, the director shall evaluate the extent to which the programs provided in sections 115A.152 to 115A.159 have contributed to the achievement of the policies and objectives of the hazardous waste management plan and other related planning documents prepared by the director. The evaluation must consider the amount of waste reduction achieved by generators through the technical and research assistance and waste reduction grant programs and the progress in reducing the need for and practice of disposal achieved through the development grants and the request for proposal program. The director shall report the results of the evaluation to the legislative commission with recommendations for further action.

Sec. 19. Minnesota Statutes 1994, section 115A.193, is amended to read:

115A.193 [REPORT ON FACILITY DEVELOPMENT.]

The director shall prepare a report concerning the development of a stabilization and containment facility. The report must include:

(a) a conceptual plan that describes and evaluates the proposed design and operation of the facility, including an evaluation of technical feasibility, a description and evaluation of the types and quantities of hazardous waste and nonhazardous residual waste from hazardous waste processing that the facility would be designed to accept, and a description and evaluation of technologies needed or desired at the facility for processing, stabilization, and containment, including above grade containment;

(b) procedures and standards for the operation of the facility that require the use of reduction, recycling, and recovery of any hazardous waste before the waste is accepted for stabilization when the alternative or additional management method is feasible and prudent and would materially reduce adverse impact on human health and the environment;

(c) evaluation of the design and use of the facility for processing, stabilization, or containment of industrial waste, including technical and regulatory issues and alternative management methods;

(d) evaluation of feasible and prudent technologies that may substantially reduce the possibility of migration of any hazardous constituents of wastes that the facility would be designed to accept;

(e) a general analysis of the necessary and desirable physical, locational, and other characteristics of a site for the facility;

(f) an evaluation of the prospects of and conditions required for the regulatory delisting of residual waste from hazardous waste processing;

(g) an evaluation of the feasibility of an interstate, regional approach to the management of hazardous waste; and

(h) an economic feasibility analysis of the development and operation of the facility, including the anticipated use of the facility by Minnesota generators from within and outside the state, and sources of private and public financing that may be available or necessary for development or operation.

The director shall submit a draft of the report to the office and the legislative commission on waste management by July 1, 1988, and before executing contracts under section 115A.191.

Sec. 20. Minnesota Statutes 1994, section 115A.22, subdivision 5, is amended to read:

Subd. 5. [DUTIES OF LOCAL COMMITTEES.] During the review, the local project review committee shall: inform affected local communities, government units, and residents of the proposed land containment and stabilization and containment facilities and of the planning and environmental review process relating to the proposed facilities; solicit and record local attitudes and concerns respecting the proposed facilities and represent and communicate such attitudes and concerns to the board, the legislative commission, the environmental quality board, the agency, and other units and agencies of government; and act as a forum for the exchange of local attitudes and concerns and the development, where possible, of local consensus.

Sec. 21. Minnesota Statutes 1994, section 115A.5501, subdivision 2, is amended to read:

Subd. 2. [MEASUREMENT; PROCEDURES.] To measure the overall percentage of packaging in the statewide solid waste stream, the director and the chair of the metropolitan council, in consultation with the commissioner, shall each conduct an annual solid waste composition study in the nonmetropolitan and metropolitan areas respectively or shall develop an alternative method that is as statistically reliable as a waste composition study to measure the percentage of packaging in the waste stream.

The chair of the council shall submit the results from the metropolitan area to the director by May 1 of each year. The director shall average the nonmetropolitan and metropolitan results and submit determine the statewide percentage, along with a statistically reliable margin of error, to the legislative commission on waste management by July 1 of each year. The 1994 report must include a discussion of the reliability of data gathered under this subdivision and the methodology used to determine a statistically reliable margin of error.

Sec. 22. Minnesota Statutes 1994, section 115A.5501, subdivision 4, is amended to read:

Subd. 4. [REPORT.] The director shall apply the statewide percentage determined under subdivision 2 to the aggregate amount of solid waste determined under subdivision 3 to determine the amount of packaging in the waste stream. By July 1, 1996, the director shall submit to the legislative commission on waste management appropriate committees of the house of representatives and the senate an analysis of the extent to which the waste packaging reduction goal in subdivision 1 has been met. In determining whether the goal has been met, the margin of error must be applied in favor of meeting the goal.

Sec. 23. Minnesota Statutes 1994, section 115A.551, subdivision 4, is amended to read:

Subd. 4. [INTERIM MONITORING.] The director, for counties outside of the metropolitan area, and the metropolitan council, for counties within the metropolitan area, shall monitor the progress of each county toward meeting the recycling goals in subdivisions 2 and 2a. The director shall report to the legislative commission on waste management appropriate committees of the house of representatives and the senate on the progress of the counties by July 1 of each year. The metropolitan council shall report to the legislative commission on waste management committees on the progress of the counties by July 1 of each year. If the director or the council finds that a county is not progressing toward the goals in subdivisions 2 and 2a, it the director or council shall negotiate with the county to develop and implement solid waste management techniques designed to assist the county in meeting the goals, such as organized collection, curbside collection of source-separated materials, and volume-based pricing.

In even-numbered years the progress report may be included in the solid waste management policy report required under section 115A.411. The metropolitan council's progress report shall must be included in the report required by section 473.149.

Sec. 24. Minnesota Statutes 1994, section 115A.551, subdivision 5, is amended to read:

Subd. 5. [FAILURE TO MEET GOAL.] (a) A county failing to meet the interim goals in subdivision 3 shall, as a minimum:

(1) notify county residents of the failure to achieve the goal and why the goal was not achieved; and

(2) provide county residents with information on recycling programs offered by the county.

(b) If, based on the recycling monitoring described in subdivision 4, the director or the metropolitan council finds that a county will be unable to meet the recycling goals established in subdivisions 2 and 2a, the director or council shall, after consideration of the reasons for the county's inability to meet the goals, recommend legislation for consideration by the legislative commission on waste management appropriate committees of the house of representatives and the senate to establish mandatory recycling standards and to authorize the director or council to mandate appropriate solid waste management techniques designed to meet the standards in those counties that are unable to meet the goals.

Sec. 25. Minnesota Statutes 1994, section 115A.557, subdivision 4, is amended to read:

Subd. 4. [REPORT.] By July 1 of each year, the director shall report on how the money was spent and the resulting statewide improvements in solid waste management to the house of representatives ways and means committee and

senate appropriations and finance committees and the legislative commission on waste management committee. In even-numbered years the report may be included in the solid waste management policy report required under section 115A.411.

Sec. 26. Minnesota Statutes 1994, section 115A.9157, subdivision 6, is amended to read:

Subd. 6. [LIST OF PARTICIPANTS.] A manufacturer or its representative organization shall inform the legislative commission on waste management director when they begin the manufacturer or organization begins participating in the projects and programs and immediately if they withdraw upon withdrawal from participation. The list of participants shall must be available to retailers, distributors, governmental agencies, and other interested persons who provide a self-addressed stamped envelope to the commission director.

Sec. 27. Minnesota Statutes 1994, section 115A.96, subdivision 2, is amended to read:

Subd. 2. [MANAGEMENT PROGRAM.] (a) The agency shall establish a statewide program to manage household hazardous wastes. The program must include:

(1) the establishment and operation of collection sites; and

(2) the provision of information, education, and technical assistance regarding proper management of household hazardous wastes.

(b) The agency shall report on its progress on establishing permanent collection sites to the legislative commission on waste management by November 1, 1991.

Sec. 28. Minnesota Statutes 1994, section 115A.961, subdivision 2, is amended to read:

Subd. 2. [PROGRAM.] (a) The director, in consultation with other state agencies, political subdivisions, and representatives of the household battery industry, may develop household battery programs. The director must coordinate the programs with the legislative commission on Minnesota resources study on batteries.

(b) The director shall investigate options and develop guidelines for collection, processing, and disposal of household batteries. The options the director may investigate include:

(1) establishing a grant program for counties to plan and implement household battery collection, processing, and disposal projects;

(2) establishing collection and transportation systems;

(3) developing and disseminating educational materials regarding environmentally sound battery management; and

(4) developing markets for materials recovered from the batteries.

(c) The director may also distribute funds to political subdivisions to develop battery management plans and implement those plans.

Sec. 29. Minnesota Statutes 1994, section 115A.9651, subdivision 2, is amended to read:

Subd. 2. [TEMPORARY EXEMPTION.] (a) An item listed in subdivision 1 is exempt from this section until July 1, 1997, if the manufacturer of the item submits to the commissioner a written request for an exemption by August 1, 1994. The request must include at least:

(1) an explanation of why compliance is not technically feasible at the time of the request;

(2) how the manufacturer will comply by July 1, 1997; and

(3) the name, address, and telephone number of a person the commissioner can contact for further information.

(b) By September 1, 1994, a person who uses an item listed in subdivision 1, into which one of the listed metals has been intentionally introduced, may submit, on behalf of the manufacturer, a request for temporary exemption only if the manufacturer fails to submit an exemption request as provided in paragraph (a). The request must include:

(1) an explanation of why the person must continue to use the item and a discussion of potential alternatives;

(2) an explanation of why it is not technically feasible at the time of the request to formulate or manufacture the item without intentionally introducing a listed metal;

(3) that the person will seek alternatives to using the item by July 1, 1997, if it still contains an intentionally introduced listed metal; and

(4) the name, address, and telephone number of a person the commissioner can contact for further information.

(c) A person who submits a request for temporary exemption under paragraph (b) may submit a request for a temporary exemption after September 1, 1994, for an item that the person will use as an alternative to the item for which the request was originally made as long as the new item has a total concentration level of all the listed metals that is significantly less than in the original item. An exemption under this paragraph expires July 1, 1997, and the person who requests it must submit the progress description required in paragraph (e).

(d) By October 1, 1994, and annually thereafter if requests are received under paragraph (c), the commissioner shall submit to the legislative commission on waste management a list of manufacturers and persons that have requested an exemption under this subdivision and the items for which exemptions were sought, along with copies of the requests.

(e) By July 1, 1996, each manufacturer on the list shall submit to the commissioner a description of the progress the manufacturer has made toward compliance with subdivision 1, and the date compliance has been achieved or the date on or before July 1, 1997, by which the manufacturer anticipates achieving compliance. By July 1, 1996, each person who has requested an exemption under paragraph (b) or (c) shall submit to the commissioner:

(1) a description of progress made to eliminate the listed metal or metals from the item or progress made by the person to find a replacement item that does not contain an intentionally introduced listed metal; and

(2) the date or anticipated date the item is or will be free of intentionally introduced metals or the date the person has stopped or will stop using the item.

By October 1, 1996, the commissioner shall submit to the legislative commission appropriate committees of the house of representatives and the senate a summary of the progress made by the manufacturers and other persons and any recommendations for appropriate legislative or other action to ensure that products are not distributed in the state after July 1, 1997, that violate subdivision 1.

Sec. 30. Minnesota Statutes 1994, section 115A.97, subdivision 5, is amended to read:

Subd. 5. [PLANS; REPORT.] A county solid waste plan, or revision of a plan, that includes incineration of mixed municipal solid waste must clearly state how the county plans to meet the goals in subdivision 1 of reducing the toxicity and quantity of incinerator ash and of reducing the quantity of processing residuals that require disposal. The director, in cooperation with the agency, the counties, and the metropolitan council, may develop guidelines for counties to use to identify ways to meet the goals in subdivision 1.

The director, in cooperation with the agency, the counties, and the metropolitan council, shall develop and propose statewide goals and timetables for the reduction of the noncombustible fraction of mixed municipal solid waste prior to incineration or processing into refuse-derived fuel and for the reduction of the toxicity of the incinerator ash. By January 1, 1990, the director shall report to the legislative commission on waste management on the proposal goals and timetables with recommendations for their implementation.

Sec. 31. Minnesota Statutes 1994, section 115A.97, subdivision 6, is amended to read:

Subd. 6. [PERMITS; AGENCY REPORT.] An application for a permit to build or operate a mixed municipal solid waste incinerator, including an application for permit renewal, must clearly state how the applicant will achieve the goals in subdivision 1 of reducing the toxicity and quantity of incinerator ash and of reducing the quantity of

processing residuals that require disposal. The agency, in cooperation with the director, the counties, and the metropolitan council, may develop guidelines for applicants to use to identify ways to meet the goals in subdivision 1.

If, by January 1, 1990, the rules required by subdivision 3 are not in at least final draft form, the agency shall report to the legislative commission on waste management on the status of current incinerator ash management programs with recommendations for specific legislation to meet the goals of subdivision 1.

Sec. 32. Minnesota Statutes 1994, section 115B.20, subdivision 2, is amended to read:

Subd. 2. [PURPOSES FOR WHICH MONEY MAY BE SPENT.] Subject to appropriation by the legislature the money in the account may be spent for any of the following purposes:

(1) preparation by the agency and the commissioner of agriculture for taking removal or remedial action under section 115B.17, or under chapter 18D, including investigation, monitoring and testing activities, enforcement and compliance efforts relating to the release of hazardous substances, pollutants or contaminants under section 115B.17 or 115B.18, or chapter 18D;

(2) removal and remedial actions taken or authorized by the agency or the commissioner of the pollution control agency under section 115B.17, or taken or authorized by the commissioner of agriculture under chapter 18D including related enforcement and compliance efforts under section 115B.17 or 115B.18, or chapter 18D, and payment of the state share of the cost of remedial action which may be carried out under a cooperative agreement with the federal government pursuant to the Federal Superfund Act, under United States Code, title 42, section 9604(c)(3) for actions related to facilities other than commercial hazardous waste facilities located under the siting authority of chapter 115A;

(3) reimbursement to any private person for expenditures made before July 1, 1983, to provide alternative water supplies deemed necessary by the agency or the commissioner of agriculture and the department of health to protect the public health from contamination resulting from the release of a hazardous substance;

(4) removal and remedial actions taken or authorized by the agency or the commissioner of agriculture or the pollution control agency under section 115B.17, or chapter 18D, including related enforcement and compliance efforts under section 115B.17 or 115B.18, or chapter 18D, and payment of the state share of the cost of remedial action which may be carried out under a cooperative agreement with the federal government pursuant to the Federal Superfund Act, under United States Code, title 42, section 9604(c)(3) for actions related to commercial hazardous waste facilities located under the siting authority of chapter 115A;

(5) compensation as provided by law, after submission by the office of waste management of the report required under section 115A.08, subdivision 5, to mitigate any adverse impact of the location of commercial hazardous waste processing or disposal facilities located pursuant to the siting authority of chapter 115A;

(6) planning and implementation by the commissioner of natural resources of the rehabilitation, restoration, or acquisition of natural resources to remedy injuries or losses to natural resources resulting from the release of a hazardous substance;

(7) inspection, monitoring, and compliance efforts by the agency, or by political subdivisions with agency approval, of commercial hazardous waste facilities located under the siting authority of chapter 115A;

(8) grants by the agency or the office of waste management to demonstrate alternatives to land disposal of hazardous waste including reduction, separation, pretreatment, processing and resource recovery, for education of persons involved in regulating and handling hazardous waste;

(9) intervention and environmental mediation by the legislative commission on waste management under chapter 115A; and

(10) grants by the agency to study the extent of contamination and feasibility of cleanup of hazardous substances and pollutants or contaminants in major waterways of the state;

(11) (10) acquisition of a property interest under section 115B.17, subdivision 15;

(12) (11) reimbursement, in an amount to be determined by the agency in each case, to a political subdivision that is not a responsible person under section 115B.03, for reasonable and necessary expenditures resulting from an emergency caused by a release or threatened release of a hazardous substance, pollutant, or contaminant; and

(13) (12) reimbursement to a political subdivision for expenditures in excess of the liability limit under section 115B.04, subdivision 4.

Sec. 33. Minnesota Statutes 1994, section 115B.20, subdivision 5, is amended to read:

Subd. 5. [RECOMMENDATION.] The legislative commission on waste management and The commissioner of agriculture shall make recommendations to the standing legislative committees on finance and appropriations ways and means regarding appropriations from the account.

Sec. 34. Minnesota Statutes 1994, section 115B.20, subdivision 6, is amended to read:

Subd. 6. [REPORT TO LEGISLATURE.] Each year, the commissioner of agriculture and the agency shall submit to the senate finance committee, the house ways and means committee, the environmental quality board, and the legislative water commission, and the legislative commission on waste management a report detailing the activities for which money from the account has been spent during the previous fiscal year.

Sec. 35. Minnesota Statutes 1994, section 116C.712, subdivision 5, is amended to read:

Subd. 5. [ASSESSMENT.] (a) A person, firm, corporation, or association in the business of owning or operating a nuclear fission electrical generating plant in this state shall pay an assessment to cover the cost of:

(1) monitoring the federal high-level radioactive waste program under the Nuclear Waste Policy Act, United States Code, title 42, sections 10101 to 10226;

(2) advising the governor and the legislature on policy issues relating to the federal high-level radioactive waste disposal program;

(3) surveying existing literature and activity relating to radioactive waste management, including storage, transportation, and disposal, in the state;

(4) an advisory task force on low-level radioactive waste deregulation, created by a law enacted in 1990 until July 1, 1996; and

(5) other general studies necessary to carry out the purposes of this subdivision.

The assessment must not be more than the appropriation to the office of strategic and long-range planning for these purposes.

(b) The office shall bill the owner or operator of the plant for the assessment at least 30 days before the start of each quarter. The assessment for the second quarter of each fiscal year must be adjusted to compensate for the amount by which actual expenditures by the office for the preceding year were more or less than the estimated expenditures previously assessed. The billing may be made as an addition to the assessments made under section 116C.69. The owner or operator of the plant must pay the assessment within 30 days after receipt of the bill. The assessment must be deposited in the state treasury and credited to the special revenue fund.

(c) The authority for this assessment terminates when the department of energy eliminates Minnesota from further siting consideration for high-level radioactive waste by starting construction of a high-level radioactive waste disposal site in another state. The assessment required for any quarter must be reduced by the amount of federal grant money received by the office of strategic and long-range planning for the purposes listed in this section.

(d) The director of the office of strategic and long-range planning must report annually by July 1 to the legislative commission on waste management on activities assessed under paragraph (a).

Sec. 36. Minnesota Statutes 1994, section 116J.555, subdivision 2, is amended to read:

Subd. 2. [APPLICATION CYCLES; REPORTING TO LCWM.] (a) In making grants, the commissioner shall establish regular application deadlines in which grants will be authorized from all or part of the available appropriations of money in the account.

(b) After each cycle in which grants are awarded, the commissioner shall report to the legislative commission on waste management appropriate committees of the house of representatives and the senate the grants awarded and appropriate supporting information describing each grant made. This report must be made within 30 days after the grants are awarded.

(c) The commissioner shall annually report to the legislative commission committees on the status of the cleanup projects undertaken under grants made under the programs. The commissioner shall include in the annual report information on the cleanup and development activities undertaken for the grants made in that and previous fiscal years. The commissioner shall make this report no later than 120 days after the end of the fiscal year.

Sec. 37. Minnesota Statutes 1994, section 256.9352, subdivision 3, is amended to read:

Subd. 3. [FINANCIAL MANAGEMENT.] (a) The commissioner shall manage spending for the MinnesotaCare program in a manner that maintains a minimum reserve equal to five percent of the expected cost of state premium subsidies. The commissioner must make a quarterly assessment of the expected expenditures for the covered services for the remainder of the current fiscal year and for the following two fiscal years. The estimated expenditure shall must be compared to an estimate of the revenues that will be deposited in the health care access fund. Based on this comparison, and after consulting with the chairs of the house ways and means committee and the senate finance committee, and the legislative commission on health care access, the commissioner shall make adjustments as necessary to ensure that expenditures remain within the limits of available revenues. The adjustments the commissioner may use must be implemented in this order: first, stop enrollment of single adults and households without children; second, upon 45 days' notice, stop coverage of single adults and households without children already enrolled in the MinnesotaCare program; third, upon 90 days' notice, decrease the premium subsidy amounts by ten percent for families with gross annual income above 200 percent of the federal poverty guidelines; fourth, upon 90 days' notice, decrease the premium subsidy amounts by ten percent for families with gross annual income at or below 200 percent; and fifth, require applicants to be uninsured for at least six months prior to eligibility in the MinnesotaCare program. If these measures are insufficient to limit the expenditures to the estimated amount of revenue, the commissioner may further limit enrollment or decrease premium subsidies.

The reserve referred to in this subdivision is appropriated to the commissioner but may only be used upon approval of the commissioner of finance, if estimated costs will exceed the forecasted amount of available revenues after all adjustments authorized under this subdivision have been made.

By February 1, 1995, the department of human services and the department of health shall develop a plan to adjust benefit levels, eligibility guidelines, or other steps necessary to ensure that expenditures for the MinnesotaCare program are contained within the two percent taxes imposed under section 295.52 and the gross premiums tax imposed under section 60A.15, subdivision 1, paragraph (e), for fiscal year 1997.

(b) Notwithstanding paragraph (a), the commissioner shall proceed with the enrollment of single adults and households without children in accordance with section 256.9354, subdivision 5, paragraph (a), even if the expenditures do not remain within the limits of available revenues through fiscal year 1997 to allow the departments of human services and health to develop the plan required under paragraph (a).

Sec. 38. Minnesota Statutes 1994, section 256B.431, subdivision 2i, is amended to read:

Subd. 2i. [OPERATING COSTS AFTER JULY 1, 1988.] (a) [OTHER OPERATING COST LIMITS.] For the rate year beginning July 1, 1988, the commissioner shall increase the other operating cost limits established in Minnesota Rules, part 9549.0055, subpart 2, item E, to 110 percent of the median of the array of allowable historical other operating cost per diems and index these limits as in Minnesota Rules, part 9549.0056, subparts 3 and 4. The limits must be established in accordance with subdivision 2b, paragraph (d). For rate years beginning on or after July 1, 1989, the adjusted other operating cost limits must be indexed as in Minnesota Rules, part 9549.0056, subparts 3 and 4. For the rate period beginning October 1, 1992, and for rate years beginning after June 30, 1993, the amount of the surcharge under section 256.9657, subdivision 1, shall be included in the plant operations and maintenance operating cost category. The surcharge shall be an allowable cost for the purpose of establishing the payment rate.

(b) [CARE-RELATED OPERATING COST LIMITS.] For the rate year beginning July 1, 1988, the commissioner shall increase the care-related operating cost limits established in Minnesota Rules, part 9549.0055, subpart 2, items A and B, to 125 percent of the median of the array of the allowable historical case mix operating cost standardized per diems and the allowable historical other care-related operating cost per diems and index those limits as in Minnesota Rules,

part 9549.0056, subparts 1 and 2. The limits must be established in accordance with subdivision 2b, paragraph (d). For rate years beginning on or after July 1, 1989, the adjusted care-related limits must be indexed as in Minnesota Rules, part 9549.0056, subparts 1 and 2.

(c) [SALARY ADJUSTMENT PER DIEM.] For the rate period October 1, 1988, to June 30, 1990, the commissioner shall add the appropriate salary adjustment per diem calculated in clause (1) or (2) to the total operating cost payment rate of each nursing facility. The salary adjustment per diem for each nursing facility must be determined as follows:

(1) for each nursing facility that reports salaries for registered nurses, licensed practical nurses, and aides, orderlies and attendants separately, the commissioner shall determine the salary adjustment per diem by multiplying the total salaries, payroll taxes, and fringe benefits allowed in each operating cost category, except management fees and administrator and central office salaries and the related payroll taxes and fringe benefits, by 3.5 percent and then dividing the resulting amount by the nursing facility's actual resident days; and

(2) for each nursing facility that does not report salaries for registered nurses, licensed practical nurses, aides, orderlies, and attendants separately, the salary adjustment per diem is the weighted average salary adjustment per diem increase determined under clause (1).

Each nursing facility that receives a salary adjustment per diem pursuant to this subdivision shall adjust nursing facility employee salaries by a minimum of the amount determined in clause (1) or (2). The commissioner shall review allowable salary costs, including payroll taxes and fringe benefits, for the reporting year ending September 30, 1989, to determine whether or not each nursing facility complied with this requirement. The commissioner shall report the extent to which each nursing facility complied with the legislative commission on long-term care by August 1, 1990.

(d) [NEW BASE YEAR.] The commissioner shall establish new base years for both the reporting year ending September 30, 1989, and the reporting year ending September 30, 1990. In establishing new base years, the commissioner must take into account:

(1) statutory changes made in geographic groups;

(2) redefinitions of cost categories; and

(3) reclassification, pass-through, or exemption of certain costs such as public employee retirement act contributions.

(e) [NEW BASE YEAR.] The commissioner shall establish a new base year for the reporting years ending September 30, 1991, and September 30, 1992. In establishing a new base year, the commissioner must take into account:

(1) statutory changes made in geographic groups;

(2) redefinitions of cost categories; and

(3) reclassification, pass-through, or exemption of certain costs.

Sec. 39. Minnesota Statutes 1994, section 473.846, is amended to read:

473.846 [REPORT TO LEGISLATURE.]

The agency and metropolitan council shall submit to the senate finance committee, and the house ways and means committee , and the legislative commission on waste management separate reports describing the activities for which money from the landfill abatement account and contingency action trust fund has been spent. The agency shall report by November 1 of each year on expenditures during its previous fiscal year. The council shall report on expenditures during the previous calendar year and must incorporate its report in the report required by section 473.149, due July 1 of each year. The council shall make recommendations to the legislative commission on waste management committees on the future management and use of the metropolitan landfill abatement account.

Sec. 40. [REPEALER.]

(a) Minnesota Statutes 1994, sections 3.861; 3.873; 3.887; 3.9222; 3.9227; 14.115, subdivision 8; 62J.04, subdivision 4; 62J.07; 62N.24; 103B.351; 115A.03, subdivision 16; 115A.08; 115A.14; 115A.29; 115A.38; 115A.411; 115A.913, subdivision 5; 115A.9157, subdivision 4; 115A.965, subdivision 7; 115A.981, subdivision 3; 115B.20, subdivision 6; 115B.22,

subdivision 8; 115B.43, subdivision 4; 116P.05, subdivision 1; 216C.051; 256B.504; 473.149, subdivisions 2c and 6; 473.845, subdivision 4; and 473.848, subdivision 4, are repealed effective June 30, 1995.

(b) Minnesota Statutes 1994, section 3.885 is repealed effective June 30, 1997.

Sec. 41. [EFFECTIVE DATES.]

Sections 1 to 39 are effective June 30, 1995.

Section 1. Minnesota Statutes 1994, section 4.071, subdivision 2, is amended to read:

Subd. 2. [MINNESOTA RESOURCES PROJECTS.] The legislature intends to appropriate one-half of the oil overcharge money for projects that have been reviewed and recommended by the legislative commission on division of Minnesota resources. A work plan must be prepared for each proposed project for review by the commission division. The commission division must recommend specific projects to the legislature.

Sec. 2. Minnesota Statutes 1994, section 84.0274, subdivision 7, is amended to read:

Subd. 7. [DISCLOSURE.] When the state proposes to purchase lands for natural resources purposes, the landowner shall must be given a written statement in lay terms of the rights and responsibilities provided for in subdivisions 5 and 6. Before a purchase can be made, the landowner must sign a statement acknowledging in writing that the statement has been provided and explained to the landowner. Within 60 days following the date of final approval of Laws 1980, Chapter 45B, the commissioner of natural resources shall submit a proposed form for the statement to the legislative commission on division of Minnesota resources. The commission division shall review the proposed form for compliance with the intent of this section and shall make any changes which it deems proper.

Sec. 3. Minnesota Statutes 1994, section 85.019, subdivision 2, is amended to read:

Subd. 2. [GRANTS FOR PARKS AND TRAILS.] The commissioner shall administer a program to provide grants to units of government located within standard metropolitan statistical areas, as designated by the United States Office of Management and Budget, but outside of the metropolitan area defined in section 473.121. The grants shall be for acquisition and betterment by units of government of public land and improvements needed for parks, trails, conservatories, zoos, and other special use facilities having recreational significance for the entire population of the particular standard metropolitan statistical area. Appropriations made for this purpose shall be expended with the approval of the governor after consultation with the legislative advisory commission. The legislative commission on division of Minnesota resources shall make recommendations to the legislative advisory commission regarding the expenditures. The local contribution required shall be not less than ten percent. The program shall must be administered so as to ensure the maximum possible use of available federal money.

Sec. 4. Minnesota Statutes 1994, section 86.72, subdivision 2, is amended to read:

Subd. 2. Money appropriated from the account shall must be expended for state land acquisition and development that is part of a natural resources acceleration activity, when the acquisition and development is deemed to be of an emergency or critical nature. In addition this money is available for studies initiated by the legislative commission on division of Minnesota resources that are found to be proper in order for the commission to carry out its legislative charge.

Sec. 5. Minnesota Statutes 1994, section 86.72, subdivision 3, is amended to read:

Subd. 3. Requests for allocation from the account for acquisition or development shall must be accompanied by a certificate signed by the commissioner of natural resources, showing a review of the application against chapter 86A. Copies of the certification shall must be submitted to the appropriate legislative committees and commissions. Appropriations from the account shall be expended with the approval of the governor after consultation with the legislative advisory commission. The legislative commission on division of Minnesota resources shall make recommendations to the legislative advisory commission regarding the expenditures.

Sec. 6. Minnesota Statutes 1994, section 89.022, subdivision 2, is amended to read:

Subd. 2. The commissioner of natural resources may apply to the legislative commission on division of Minnesota resources for an exemption from the exchange or sale requirements of subdivision 1 in instances where it can be demonstrated that unique recreational, historical or scientific values would be destroyed by the exchange or sale of tillable land or a farm homestead. Exemptions shall must be decided by the commission division on an individual basis. If the application for exemption is not decided by the commission division within 90 days, the application shall be is deemed to have been denied.

Sec. 7. Minnesota Statutes 1994, section 103A.43, is amended to read:

103A.43 [WATER ASSESSMENTS AND REPORTS.]

(a) The environmental quality board shall evaluate and report to the legislative water commission and the legislative commission on division of Minnesota resources on statewide water research needs and recommended priorities for addressing these needs. Local water research needs may also be included.

(b) The environmental quality board shall coordinate a biennial assessment of water quality, groundwater degradation trends, and efforts to reduce, prevent, minimize, and eliminate degradation of water.

(c) The environmental quality board shall coordinate an assessment of the quantity of surface and ground water in the state and the availability of water to meet the state's needs.

(d) The environmental quality board shall coordinate and submit a report on water policy to the legislative water commission and the legislative commission on division of Minnesota resources by September 15 of each even-numbered year. The report may include the groundwater policy report in section 103A.204.

Sec. 8. Minnesota Statutes 1994, section 103B.321, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] The board shall:

(1) develop guidelines for the contents of comprehensive water plans that provide for a flexible approach to meeting the different water and related land resources needs of counties and watersheds across the state;

(2) coordinate assistance of state agencies to counties and other local units of government involved in preparation of comprehensive water plans, including identification of pertinent data and studies available from the state and federal government;

(3) conduct an active program of information and education concerning the requirements and purposes of sections 103B.301 to 103B.355 in conjunction with the association of Minnesota counties;

(4) determine contested cases under section 103B.345;

(5) establish a process for review of comprehensive water plans that assures the plans are consistent with state law;

(6) report to the legislative commission on division of Minnesota resources as required by section 103B.351; and

(7) make grants to counties for comprehensive local water planning, implementation of priority actions identified in approved plans, and sealing of abandoned wells.

Sec. 9. Minnesota Statutes 1994, section 116P.02, is amended to read:

116P.02 [DEFINITIONS.]

Subdivision 1. [APPLICABILITY.] The definitions in this section apply to sections 116P.01 to 116P.13.

Subd. 2. [ADVISORY COMMITTEE.] "Advisory committee" means the advisory committee created in section 116P.06.

Subd. 3. [BOARD.] "Board" means the state board of investment.

Subd. 4. [COMMISSION DIVISION.] "Commission" "Division" means the legislative commission on division of Minnesota resources.

Subd. 5. [NATURAL RESOURCES.] "Natural resources" includes the outdoor recreation system under section 86A.04 and regional recreation open space systems as defined under section 473.351, subdivision 1.

Subd. 6. [TRUST FUND.] "Trust fund" means the Minnesota environment and natural resources trust fund established under Minnesota Constitution, article XI, section 14.

Sec. 10. Minnesota Statutes 1994, section 116P.03, is amended to read:

116P.03 [TRUST FUND NOT TO SUPPLANT EXISTING FUNDING.]

(a) The trust fund may not be used as a substitute for traditional sources of funding environmental and natural resources activities, but the trust fund shall must supplement the traditional sources, including those sources used to support the criteria in section 116P.08, subdivision 1. The trust fund must be used primarily to support activities whose benefits become available only over an extended period of time.

(b) The commission must division shall determine the amount of the state budget spent from traditional sources to fund environmental and natural resources activities before and after the trust fund is established and include a comparison of the amount in the report under section 116P.09, subdivision 7.

Sec. 11. Minnesota Statutes 1994, section 116P.05, is amended by adding a subdivision to read:

Subd. 1a. [DIVISION OF MINNESOTA RESOURCES.] The division of Minnesota resources is a division in the office of strategic and long-range planning headed by an assistant director appointed by the director to serve in the unclassified service. A state agency, the metropolitan council as defined in section 473.121, subdivision 3, or a metropolitan agency as defined in section 473.121, subdivision 5a, may not apply for money for programs subject to the division's approval.

Sec. 12. Minnesota Statutes 1994, section 116P.05, subdivision 2, is amended to read:

Subd. 2. [DUTIES.] (a) The commission division shall recommend a budget plan for expenditures from the environment and natural resources trust fund and shall adopt a strategic plan as provided in section 116P.08.

(b) The commission division shall recommend expenditures to the legislature from the Minnesota future resources fund under section 116P.13.

(c) It is a condition of acceptance of the appropriations made from the Minnesota future resources fund, Minnesota environment and natural resources trust fund, and oil overcharge money under section 4.071, subdivision 2, that the agency or entity receiving the appropriation must submit a work program and semiannual progress reports in the form determined by the legislative commission on division of Minnesota resources. None of the money provided may be spent unless the commission division has approved the pertinent work program.

(d) The peer review panel created under section 116P.08 must also review, comment, and report to the commission division on research proposals applying for an appropriation from the Minnesota resources fund and from oil overcharge money under section 4.071, subdivision 2.

(e) The commission division may adopt operating procedures to fulfill its duties under sections 116P.01 to 116P.13.

Sec. 13. Minnesota Statutes 1994, section 116P.06, is amended to read:

116P.06 [ADVISORY COMMITTEE.]

Subdivision 1. [MEMBERSHIP.] (a) The governor shall appoint an advisory committee of 11 citizen members shall be appointed by the governor to advise the legislative commission on division of Minnesota resources on project proposals to receive funding from the trust fund and the development of budget and strategic plans. The governor shall appoint at least one member from each congressional district. The governor shall appoint the chair.

(b) The governor's appointees must be confirmed with the advice and consent of the senate. The membership terms, compensation, removal, and filling of vacancies for citizen members of the advisory committee are governed by section 15.0575.

Subd. 2. [DUTIES.] (a) The advisory committee shall:

(1) prepare and submit to the commission division a draft strategic plan to guide expenditures from the trust fund;

(2) review the reinvest in Minnesota program during development of the draft strategic plan;

(3) gather input from the resources congress during development of the draft strategic plan;

(4) advise the commission division on project proposals to receive funding from the trust fund; and

(5) advise the commission division on development of the budget plan.

(b) The advisory committee may review all project proposals for funding and may make recommendations to the commission division on whether the projects:

(1) meet the standards and funding categories set forth in sections 116P.01 to 116P.12;

(2) duplicate existing federal, state, or local projects being conducted within the state; and

(3) are consistent with the most recent strategic plan adopted by the commission division.

Sec. 14. Minnesota Statutes 1994, section 116P.07, is amended to read:

116P.07 [RESOURCES CONGRESS.]

The commission division must convene a resources congress at least once every biennium and shall develop procedures for the congress. The congress must be open to all interested individuals. The purpose of the congress is to collect public input necessary to allow the commission division, with the advice of the advisory committee, to develop a strategic plan to guide expenditures from the trust fund. The congress also may be convened to receive and review reports on trust fund projects. The congress shall also review the reinvest in Minnesota program.

Sec. 15. Minnesota Statutes 1994, section 116P.08, subdivision 3, is amended to read:

Subd. 3. [STRATEGIC PLAN REQUIRED.] (a) The commission division shall adopt a strategic plan for making expenditures from the trust fund, including identifying the priority areas for funding for the next six years. The strategic plan must be updated every two years. The plan is advisory only. The commission division shall submit the plan, as a recommendation, to the house of representatives appropriations ways and means and senate finance committees by January 1 of each odd-numbered year.

(b) The commission division may accept or modify the draft of the strategic plan submitted to it by the advisory committee before voting on the plan's adoption.

Sec. 16. Minnesota Statutes 1994, section 116P.08, subdivision 4, is amended to read:

Subd. 4. [BUDGET PLAN.] (a) Funding may be provided only for those projects that meet the categories established in subdivision 1.

(b) Projects submitted to the commission division for funding may be referred to the advisory committee for recommendation.

(c) The commission division must adopt a budget plan to make expenditures from the trust fund for the purposes provided in subdivision 1. The budget plan must be submitted to the governor for inclusion in the biennial budget and supplemental budget submitted to the legislature.

(d) Money in the trust fund may not be spent except under an appropriation by law.

Sec. 17. Minnesota Statutes 1994, section 116P.08, subdivision 5, is amended to read:

Subd. 5. [PUBLIC MEETINGS.] All advisory committee and commission meetings must be open to the public. The commission shall attempt to meet at least once in each of the state's congressional districts during each biennium.

Sec. 18. Minnesota Statutes 1994, section 116P.08, subdivision 6, is amended to read:

Subd. 6. [PEER REVIEW.] (a) Research proposals must include a stated purpose, timeline, potential outcomes, and an explanation of the need for the research. All research proposals must be reviewed by a peer review panel before receiving an appropriation.

(b) In conducting research proposal reviews, the peer review panel shall:

(1) comment on the methodology proposed and whether it can be expected to yield appropriate and useful information and data;

(2) comment on the need for the research and about similar existing information available, if any; and

(3) report to the commission division and advisory committee on clauses (1) and (2).

(c) The peer review panel also must review completed research proposals that have received an appropriation and comment and report upon whether the project reached the intended goals.

Sec. 19. Minnesota Statutes 1994, section 116P.08, subdivision 7, is amended to read:

Subd. 7. [PEER REVIEW PANEL MEMBERSHIP.] (a) The peer review panel must consist of at least five members who are knowledgeable in general research methods in the areas of environment and natural resources. Not more than two members of the panel may be employees of state agencies in Minnesota.

(b) The commission division shall select a chair every two years who shall be responsible for convening meetings of the panel as often as is necessary to fulfill its duties as prescribed in this section. Compensation of panel members is governed by section 15.059, subdivision 3.

Sec. 20. Minnesota Statutes 1994, section 116P.09, is amended to read:

116P.09 [ADMINISTRATION.]

Subdivision 1. [ADMINISTRATIVE AUTHORITY.] The commission division may appoint legal and other personnel and consultants necessary to carry out functions and duties of the commission division. Permanent employees shall be are in the unclassified service. In addition, the commission division may request staff assistance and data from any other agency of state government as needed for the execution of the responsibilities of the commission division and advisory committee and an agency must promptly furnish it.

Subd. 2. [LIAISON OFFICERS.] The commission division shall request each department or agency head of all state agencies with a direct interest and responsibility in any phase of environment and natural resources to appoint, and the latter shall appoint for the agency, a liaison officer who shall work closely with the commission and its division staff.

Subd. 3. [APPRAISAL AND EVALUATION.] The commission division shall obtain and appraise information available through private organizations and groups, utilizing to the fullest extent possible studies, data, and reports previously prepared or currently in progress by public agencies, private organizations, groups, and others, concerning future trends in the protection, conservation, preservation, and enhancement of the state's air, water, land, forests, fish, wildlife, native vegetation, and other natural resources. Any data compiled by the commission shall division must be made available to any standing or interim committee of the legislature upon the request of the chair of the respective committee.

Subd. 4. [PERSONNEL.] Persons who are employed by a state agency to work on a project and are paid by an appropriation from the trust fund or Minnesota future resources fund are in the unclassified civil service, and their continued employment is contingent upon the availability of money from the appropriation. When the appropriation has been spent, their positions must be canceled and the approved complement of the agency reduced accordingly. Part-time employment of persons for a project is authorized. The use of classified employees is authorized when approved as part of the work program required by section 116P.05, subdivision 2, paragraph (c).

Subd. 5. [ADMINISTRATIVE EXPENSE.] The administrative expenses of the commission shall division must be paid from the various funds administered by the commission division as follows:

(1) Through June 30, 1993, the administrative expenses of the commission division and the advisory committee shall must be paid from the Minnesota future resources fund. After that time, the prorated expenses related to administration of the trust fund shall must be paid from the earnings of the trust fund.

(2) After June 30, 1993, the prorated expenses related to administration of the trust fund may not exceed an amount equal to four percent of the projected earnings of the trust fund for the biennium.

Subd. 6. [CONFLICT OF INTEREST.] A commission member employee, advisory committee member, or peer review panelist, or an employee of the commission may not participate in or vote on a decision of the commission division, advisory committee, or peer review panel relating to an organization in which the member, panelist, or employee has either a direct or indirect personal financial interest. While serving on the legislative commission, advisory committee, or peer review panel, or being an employee of the commission division, a person shall avoid any potential conflict of interest.

Subd. 7. [REPORT REQUIRED.] The commission division shall, by January 15 of each odd-numbered year, submit a report to the governor, the chairs of the house appropriations ways and means and senate finance committees, and the chairs of the house and senate committees on environment and natural resources. Copies of the report must be available to the public. The report must include:

(1) a copy of the current strategic plan;

(2) a description of each project receiving money from the trust fund and Minnesota future resources fund during the preceding biennium;

(3) a summary of any research project completed in the preceding biennium;

(4) recommendations to implement successful projects and programs into a state agency's standard operations;

(5) to the extent known by the commission division, descriptions of the projects anticipated to be supported by the trust fund and Minnesota future resources account during the next biennium;

(6) the source and amount of all revenues collected and distributed by the commission division, including all administrative and other expenses;

(7) a description of the assets and liabilities of the trust fund and the Minnesota future resources fund;

(8) any findings or recommendations that are deemed proper to assist the legislature in formulating legislation;

(9) a list of all gifts and donations with a value over $1,000;

(10) a comparison of the amounts spent by the state for environment and natural resources activities through the most recent fiscal year; and

(11) a copy of the most recent compliance audit.

Sec. 21. Minnesota Statutes 1994, section 116P.10, is amended to read:

116P.10 [ROYALTIES, COPYRIGHTS, PATENTS.]

This section applies to projects supported by the trust fund, the Minnesota future resources fund, and the oil overcharge money referred to in section 4.071, subdivision 2, each of which is referred to in this section as a "fund." The fund owns and shall take title to the percentage of a royalty, copyright, or patent resulting from a project supported by the fund equal to the percentage of the project's total funding provided by the fund. Cash receipts resulting from a royalty, copyright, or patent, or the sale of the fund's rights to a royalty, copyright, or patent, must be credited immediately to the principal of the fund. Before a project is included in the budget plan, the commission division may vote to relinquish the ownership or rights to a royalty, copyright, or patent resulting from a project supported by the fund to the project's proposer when the amount of the original grant or loan, plus interest, has been repaid to the fund.

Sec. 22. Minnesota Statutes 1994, section 116P.11, is amended to read:

116P.11 [AVAILABILITY OF FUNDS FOR DISBURSEMENT.]

(a) The amount biennially available from the trust fund for the budget plan developed by the commission division consists of the earnings generated from the trust fund. Earnings generated from the trust fund shall must equal the amount of interest on debt securities and dividends on equity securities. Gains and losses arising from the sale of securities shall be are apportioned as follows:

(1) if the sale of securities results in a net gain during a fiscal year, the gain shall must be apportioned in equal installments over the next ten fiscal years to offset net losses in those years. If any portion of an installment is not needed to recover subsequent losses identified in paragraph (b), it shall must be added to the principal of the fund; and

(2) if the sale of securities results in a net loss during a fiscal year, the net loss shall must be recovered from the gains in paragraph (a) apportioned to that fiscal year. If such the gains are insufficient, any remaining net loss shall must be recovered from interest and dividend income in equal installments over the following ten fiscal years.

(b) For funding projects until fiscal year 1997, the following additional amounts are available from the trust fund for the budget plans developed by the commission division:

(1) for the 1991-1993 biennium, up to 25 percent of the revenue deposited in the trust fund in fiscal years 1990 and 1991;

(2) for the 1993-1995 biennium, up to 20 percent of the revenue deposited in the trust fund in fiscal year 1992 and up to 15 percent of the revenue deposited in the fund in fiscal year 1993;

(3) for the 1993-1995 biennium, up to 25 percent of the revenue deposited in the trust fund in fiscal years 1994 and 1995, to be expended only for capital investments in parks and trails; and

(4) for the 1995-1997 biennium, up to ten percent of the revenue deposited in the fund in fiscal year 1996.

(c) Any appropriated funds not encumbered in the biennium in which they are appropriated cancel and must be credited to the principal of the trust fund.

Sec. 23. Minnesota Statutes 1994, section 116P.12, is amended to read:

116P.12 [WATER SYSTEM IMPROVEMENT LOAN PROGRAM.]

Subdivision 1. [LOANS AUTHORIZED.] (a) If the principal of the trust fund equals or exceeds $200,000,000, the commission division may vote to set aside up to five percent of the principal of the trust fund for water system improvement loans. The purpose of water system improvement loans is to offer below market rate interest loans to local units of government for the purposes of water system improvements.

(b) The interest on a loan shall must be calculated on the declining balance at a rate four percentage points below the secondary market yield of one-year United States treasury bills calculated according to section 549.09, subdivision 1, paragraph (c).

(c) An eligible project must prove that existing federal or state loans or grants have not been adequate.

(d) Payments on the principal and interest of loans under this section must be credited to the trust fund.

(e) Repayment of loans made under this section must be completed within 20 years.

(f) The Minnesota public facilities authority must report to the commission division each year on the loan program under this section.

Subd. 2. [APPLICATION AND ADMINISTRATION.] (a) The commission division must adopt a procedure for the issuance of the water system improvement loans by the public facilities authority.

(b) The commission division must also must ensure that the loans are administered according to its fiduciary standards and requirements.

Sec. 24. Minnesota Statutes 1994, section 116Q.02, is amended to read:

116Q.02 [STATE RECEIPTS FROM THE FUND.]

Subdivision 1. [GREAT LAKES PROTECTION ACCOUNT.] Any money received by the state from the Great Lakes protection fund, whether in the form of annual earnings or otherwise, must be deposited in the state treasury and credited to a special Great Lakes protection account. Money in the account must may be spent only as specifically appropriated by law for protecting water quality in the Great Lakes. Approved purposes include, but are not limited to, supplementing in a stable and predictable manner state and federal commitments to Great Lakes water quality programs by providing grants to finance projects that advance the goals of the regional Great Lakes toxic substances control agreement and the binational Great Lakes water quality agreement.

Subd. 2. [LCMR DMR REVIEW.] The legislature intends not to appropriate money from the Great Lakes protection account until projects have been reviewed and recommended by the legislative commission on division of Minnesota resources. A work plan must be prepared for each project for review by the commission division. The commission division must recommend specific projects to the legislature.

Sec. 25. Minnesota Statutes 1994, section 290.431, is amended to read:

290.431 [NONGAME WILDLIFE CHECKOFF.]

Every individual who files an income tax return or property tax refund claim form may designate on their the individual's original return that $1 or more shall must be added to the tax or deducted from the refund that would otherwise be payable by or to that individual and paid into an account to be established for the management of nongame wildlife. The commissioner of revenue shall, on the income tax return and the property tax refund claim form, notify filers of their right to designate that a portion of their tax or refund shall be paid into the nongame wildlife management account. The sum of the amounts so designated to be paid shall must be credited to the nongame wildlife management account for use by the nongame program of the section of wildlife in the department of natural resources. All interest earned on money accrued in the nongame wildlife management account shall must be credited to the account by the state treasurer. The commissioner of natural resources shall submit a work program for each fiscal year and semiannual progress reports to the legislative commission on division of Minnesota resources in the form determined by the commission division. None of the money provided in this section may be expended unless the commission division has approved the work program.

The state pledges and agrees with all contributors to the nongame wildlife management account to use the funds contributed solely for the management of nongame wildlife projects and further agrees that it will not impose additional conditions or restrictions that will limit or otherwise restrict the ability of the commissioner of natural resources to use the available funds for the most efficient and effective management of nongame wildlife.

Sec. 26. Minnesota Statutes 1994, section 290.432, is amended to read:

290.432 [CORPORATE NONGAME WILDLIFE CHECKOFF.]

A corporation that files an income tax return may designate on its original return that $1 or more shall must be added to the tax or deducted from the refund that would otherwise be payable by or to that corporation and paid into the nongame wildlife management account established by section 290.431 for use by the section of wildlife in the department of natural resources for its nongame wildlife program. The commissioner of revenue shall, on the corporate tax return, notify filers of their right to designate that a portion of their tax return be paid into the nongame wildlife management account for the protection of endangered natural resources. All interest earned on money accrued in the nongame wildlife management account shall must be credited to the account by the state treasurer. The commissioner of natural resources shall submit a work program for each fiscal year to the legislative commission on division of Minnesota resources in the form determined by the commission division. None of the money provided in this section may be spent unless the commission has approved the work program.

The state pledges and agrees with all corporate contributors to the nongame wildlife account to use the funds contributed solely for the nongame wildlife program and further agrees that it will not impose additional conditions or restrictions that will limit or otherwise restrict the ability of the commissioner of natural resources to use the available funds for the most efficient and effective management of those programs.

Sec. 27. [REPEALER.]

Minnesota Statutes 1994, section 116P.05, subdivision 1, is repealed, effective June 30, 1995.

Sec. 28. [EFFECTIVE DATE.]

Sections 1 to 27 are effective July 1, 1995."

Renumber the sections in sequence and correct internal references

Renumber the articles in sequence

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called. There were 56 yeas and 75 nays as follows:

Those who voted in the affirmative were:

Abrams       Goodno       Lindner      Pellow       Van Dellen
Anderson, B. Haas         Lynch        Rhodes       Van Engen
Bettermann   Hackbarth    Macklin      Rostberg     Vickerman
Boudreau     Harder       Mares        Seagren      Warkentin
Bradley      Jennings     McElroy      Smith        Weaver
Broecker     Knight       Molnau       Stanek       Wolf
Commers      Knoblach     Mulder       Sviggum      Worke
Daggett      Koppendrayer Olson, M.    Swenson, D.  Workman 
Dehler       Kraus        Onnen        Swenson, H.  
Dempsey      Krinkie      Osskopp      Sykora       
Erhardt      Larsen       Paulsen      Tompkins     
Girard       Leppik       Pawlenty     Tuma         

Anderson, R. Frerichs     Kinkel       Opatz        Simoneau
Bakk         Garcia       Leighton     Orenstein    Skoglund
Bertram      Greenfield   Lieder       Orfield      Solberg
Bishop       Greiling     Long         Osthoff      Tomassoni
Brown        Hasskamp     Lourey       Ostrom       Trimble
Carlson      Hausman      Luther       Otremba      Tunheim
Carruthers   Holsten      Mahon        Ozment       Wagenius
Clark        Huntley      Mariani      Pelowski     Wejcman
Cooper       Jaros        Marko        Perlt        Wenzel
Davids       Jefferson    McCollum     Peterson     Winter
Dawkins      Johnson, A.  McGuire      Pugh         Sp.Anderson,I
Delmont      Johnson, R.  Milbert      Rest         
Dorn         Johnson, V.  Munger       Rice         
Entenza      Kahn         Murphy       Rukavina     
Farrell      Kalis        Ness         Sarna        
Finseth      Kelley       Olson, E.    Schumacher   

Haas moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 6, line 9, after the period, insert "Efforts to improve government efficiency and effectiveness include, but are not limited to, reductions in unnecessary paperwork, repeal of unnecessary state, federal, and local regulations, and reductions in unnecessary staff."

A roll call was requested and properly seconded.

The question was taken on the Haas amendment and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

Knoblach moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 6, lines 27 and 28, delete "additional employee complement," and insert "filling of unfilled employee complement"

The motion prevailed and the amendment was adopted.

Holsten offered an amendment to S. F. No. 1246, the unofficial engrossment, as amended.

Dorn raised a point of order pursuant to rule 3.09 that the Holsten amendment was not in order. Speaker pro tempore Long ruled the point of order well taken and the amendment out of order.

Trimble, Ozment, Dempsey, Jennings and Hausman moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 65, after line 19, insert:

"Sec. 9. Laws of Minnesota 1994, chapter 641, article 5, section 1, subdivision 6, is amended to read:

Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the co-chairs of the legislative task force and the director of the legislative coordinating commission, the commissioner of the department of public service shall assess from electric utilities, in addition to assessments made under Minnesota Statutes, section 216B.62, the amount requested for the studies and analysis required in subdivisions 3 and 4 and for operation of the task force not to exceed $350,000. This authority to assess continues until the commissioner has assessed a total of $350,000. The amount assessed under this section is appropriated to the director of the legislative coordinating commission for those purposes, and is available until expended."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

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

Rostberg was excused while in conference.

Pawlenty moved to amend S. F. No. 1246, the unofficial engrossment, as amended, as follows:

Page 53, line 29, delete "other than"

Page 53, line 30, delete "a city of the first class"

Page 54, line 12, delete "five" and insert "ten"

A roll call was requested and properly seconded.

The question was taken on the Pawlenty amendment and the roll was called. There were 75 yeas and 54 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Kraus        Onnen        Stanek
Anderson, B. Girard       Krinkie      Opatz        Sviggum
Bettermann   Goodno       Larsen       Osskopp      Swenson, D.
Bishop       Greiling     Leppik       Ostrom       Swenson, H.
Boudreau     Haas         Lindner      Otremba      Sykora
Bradley      Hackbarth    Lynch        Ozment       Tompkins
Broecker     Harder       Macklin      Paulsen      Tuma
Carruthers   Holsten      Mahon        Pawlenty     Van Dellen
Commers      Jennings     Mares        Pellow       Van Engen
Daggett      Johnson, V.  McElroy      Peterson     Vickerman
Davids       Kelley       McGuire      Rest         Warkentin
Dehler       Kelso        Molnau       Rhodes       Weaver
Dempsey      Knight       Mulder       Schumacher   Wolf
Dorn         Knoblach     Ness         Seagren      Worke
Erhardt      Koppendrayer Olson, M.    Smith        Workman 

Anderson, R. Garcia       Kinkel       Murphy       Skoglund
Bakk         Greenfield   Leighton     Olson, E.    Solberg
Bertram      Hasskamp     Lieder       Orenstein    Tomassoni
Brown        Hausman      Long         Osthoff      Trimble
Carlson      Huntley      Lourey       Pelowski     Tunheim
Clark        Jaros        Luther       Perlt        Wagenius
Cooper       Jefferson    Mariani      Pugh         Wejcman
Dawkins      Johnson, A.  Marko        Rice         Wenzel
Delmont      Johnson, R.  McCollum     Rukavina     Winter
Entenza      Kahn         Milbert      Sarna        Sp.Anderson,I
Farrell      Kalis        Munger       Simoneau     

S. F. No. 1246, A bill for an act relating to state government; abolishing periodic reports; repealing obsolete rules of the departments of agriculture, commerce, health, human services, public safety, public service, and revenue and the pollution control agency; removing internal references to repealed rules; providing a deadline for certain actions by state and local government agencies; clarifying statutory waiver requirements with respect to the housing finance

agency for the civil service pilot project; requiring legislative review of certain agency reorganization efforts; establishing the office of citizen advocate in the department of administration; modifying provisions relating to data classification; workers' compensation premium collection; employment classifications and procedures; and benefits; providing penalties; establishing a task force to recommend a governmental structure for environmental and natural resource functions and services; requiring establishment of an employee participation committee before agency restructuring; abolishing the department of natural resources, the board of water and soil resources, the office of environmental assistance, the pollution control agency, the environmental quality board, the harmful substances compensation board, the petroleum tank release compensation board, and the agricultural chemical response board; providing for appointments; abolishing the transportation regulation board; transferring its functions to other agencies; establishing pilot projects to improve the efficiency and effectiveness of state agencies; authorizing waivers of certain rules and policies; abolishing the legislative commission on children, youth, and their families, the legislative water commission, the legislative commission on the economic status of women, the legislative commission on child protection, the legislative commission on health care access, the legislative commission on long-term health care, the legislative commission on waste management, and the legislative tax study commission; transferring functions of the legislative commission on Minnesota resources to the office of strategic and long-range planning; establishing the department of children, families, and learning; making related changes; amending Minnesota Statutes 1994, sections 4.071, subdivision 2; 13.67; 15A.081, subdivision 1; 43A.04, subdivision 1; 43A.08, subdivision 1; 43A.10, subdivision 8; 43A.13, subdivision 6; 43A.15, by adding a subdivision; 43A.19, subdivision 1; 43A.191, subdivisions 1, 2, and 3; 43A.24, subdivision 2; 43A.27, subdivision 3; 43A.316; 43A.317, subdivision 5; 62J.04, subdivision 1a; 62J.45, subdivision 8; 62Q.33, subdivision 5; 84.0274, subdivision 7; 85.019, subdivision 2; 86.72, subdivisions 2 and 3; 89.022, subdivision 2; 103A.43; 103B.321, subdivision 1; 115A.07, subdivision 3; 115A.15, subdivision 5; 115A.158, subdivision 2; 115A.165; 115A.193; 115A.22, subdivision 5; 115A.5501, subdivisions 2 and 4; 115A.551, subdivisions 4 and 5; 115A.557, subdivision 4; 115A.9157, subdivision 6; 115A.96, subdivision 2; 115A.961, subdivision 2; 115A.9651, subdivision 2; 115A.97, subdivisions 5 and 6; 115B.20, subdivisions 2, 5, and 6; 116C.712, subdivision 5; 116J.555, subdivision 2; 116P.02; 116P.03; 116P.05, subdivision 2, and by adding a subdivision; 116P.06; 116P.07; 116P.08, subdivisions 3, 4, 5, 6, and 7; 116P.09; 116P.10; 116P.11; 116P.12; 116Q.02; 174.02, subdivisions 4, 5, and by adding subdivisions; 174.06, by adding a subdivision; 174.10; 218.041, subdivision 6; 219.074, subdivisions 1 and 2; 256.9352, subdivision 3; 256B.0644; 256B.431, subdivision 2i; 256F.13, subdivision 1; 290.431; 290.432; 356.87; and 473.846; Minnesota Rules, parts 1540.2140; 7001.0140, subpart 2; 7001.0180; 8130.3500, subpart 3; and 8130.6500, subpart 5; proposing coding for new law in Minnesota Statutes, chapters 15; 16B; 174; and 465; proposing coding for new law as Minnesota Statutes, chapter 119A; repealing Minnesota Statutes 1994, sections 3.861; 3.873; 3.885; 3.887; 3.9222; 3.9227; 14.115, subdivision 8; 62J.04, subdivision 4; 62J.07; 62N.24; 103B.351; 115A.03, subdivision 16; 115A.08; 115A.14; 115A.29; 115A.38; 115A.411; 115A.913, subdivision 5; 115A.9157, subdivision 4; 115A.965, subdivision 7; 115A.981, subdivision 3; 115B.22, subdivision 8; 115B.43, subdivision 4; 116P.05, subdivision 1; 174.05; 174.06; 174A.01; 174A.02; 174A.03; 174A.04; 216C.051; 218.011, subdivision 7; 218.041, subdivision 7; 256B.504; 473.149, subdivisions 2c and 6; 473.845, subdivision 4; and 473.848, subdivision 4; Minnesota Rules, parts 1540.0010, subparts 12, 18, 21, 22, and 24; 1540.0060; 1540.0070; 1540.0080; 1540.0100; 1540.0110; 1540.0120; 1540.0130; 1540.0140; 1540.0150; 1540.0160; 1540.0170; 1540.0180; 1540.0190; 1540.0200; 1540.0210; 1540.0220; 1540.0230; 1540.0240; 1540.0260; 1540.0320; 1540.0330; 1540.0340; 1540.0350; 1540.0370; 1540.0380; 1540.0390; 1540.0400; 1540.0410; 1540.0420; 1540.0440; 1540.0450; 1540.0460; 1540.0490; 1540.0500; 1540.0510; 1540.0520; 1540.0770; 1540.0780; 1540.0800; 1540.0810; 1540.0830; 1540.0880; 1540.0890; 1540.0900; 1540.0910; 1540.0920; 1540.0930; 1540.0940; 1540.0950; 1540.0960; 1540.0970; 1540.0980; 1540.0990; 1540.1000; 1540.1005; 1540.1010; 1540.1020; 1540.1030; 1540.1040; 1540.1050; 1540.1060; 1540.1070; 1540.1080; 1540.1090; 1540.1100; 1540.1110; 1540.1120; 1540.1130; 1540.1140; 1540.1150; 1540.1160; 1540.1170; 1540.1180; 1540.1190; 1540.1200; 1540.1210; 1540.1220; 1540.1230; 1540.1240; 1540.1250; 1540.1255; 1540.1260; 1540.1280; 1540.1290; 1540.1300; 1540.1310; 1540.1320; 1540.1330; 1540.1340; 1540.1350; 1540.1360; 1540.1380; 1540.1400; 1540.1410; 1540.1420; 1540.1430; 1540.1440; 1540.1450; 1540.1460; 1540.1470; 1540.1490; 1540.1500; 1540.1510; 1540.1520; 1540.1530; 1540.1540; 1540.1550; 1540.1560; 1549.1570; 1540.1580; 1540.1590; 1540.1600; 1540.1610; 1540.1620; 1540.1630; 1540.1640; 1540.1650; 1540.1660; 1540.1670; 1540.1680; 1540.1690; 1540.1700; 1540.1710; 1540.1720; 1540.1730; 1540.1740; 1540.1750; 1540.1760; 1540.1770; 1540.1780; 1540.1790; 1540.1800; 1540.1810; 1540.1820; 1540.1830; 1540.1840; 1540.1850; 1540.1860; 1540.1870; 1540.1880; 1540.1890; 1540.1900; 1540.1905; 1540.1910; 1540.1920; 1540.1930; 1540.1940; 1540.1950; 1540.1960; 1540.1970; 1540.1980; 1540.1990; 1540.2000; 1540.2010; 1540.2015; 1540.2020; 1540.2090; 1540.2100; 1540.2110; 1540.2120; 1540.2180; 1540.2190; 1540.2200; 1540.2210; 1540.2220; 1540.2230; 1540.2240; 1540.2250; 1540.2260; 1540.2270; 1540.2280; 1540.2290; 1540.2300; 1540.2310; 1540.2320; 1540.2325; 1540.2330; 1540.2340; 1540.2350; 1540.2360; 1540.2370; 1540.2380; 1540.2390; 1540.2400; 1540.2410; 1540.2420; 1540.2430; 1540.2440; 1540.2450; 1540.2490; 1540.2500; 1540.2510; 1540.2530; 1540.2540; 1540.2550; 1540.2560; 1540.2570; 1540.2580; 1540.2590; 1540.2610; 1540.2630; 1540.2640; 1540.2650; 1540.2660; 1540.2720; 1540.2730; 1540.2740; 1540.2760; 1540.2770; 1540.2780; 1540.2790; 1540.2800; 1540.2810; 1540.2820; 1540.2830; 1540.2840; 1540.3420; 1540.3430; 1540.3440; 1540.3450; 1540.3460; 1540.3470; 1540.3560; 1540.3600; 1540.3610; 1540.3620; 1540.3630; 1540.3700; 1540.3780; 1540.3960; 1540.3970; 1540.3980; 1540.3990; 1540.4000; 1540.4010; 1540.4020; 1540.4030; 1540.4040; 1540.4080; 1540.4190; 1540.4200; 1540.4210; 1540.4220; 1540.4320; 1540.4330; 1540.4340; 2642.0120, subpart 1; 2650.0100; 2650.0200; 2650.0300; 2650.0400; 2650.0500; 2650.0600; 2650.1100; 2650.1200; 2650.1300; 2650.1400; 2650.1500; 2650.1600; 2650.1700; 2650.1800; 2650.1900; 2650.2000;

2650.2100; 2650.3100; 2650.3200; 2650.3300; 2650.3400; 2650.3500; 2650.3600; 2650.3700; 2650.3800; 2650.3900; 2650.4000; 2650.4100; 2655.1000; 2660.0070; 2770.7400; 4610.2210; 7002.0410; 7002.0420; 7002.0430; 7002.0440; 7002.0450; 7002.0460; 7002.0470; 7002.0480; 7002.0490; 7047.0010; 7047.0020; 7047.0030; 7047.0040; 7047.0050; 7047.0060; 7047.0070; 7100.0300; 7100.0310; 7100.0320; 7100.0330; 7100.0335; 7100.0340; 7100.0350; 7510.6100; 7510.6200; 7510.6300; 7510.6350; 7510.6400; 7510.6500; 7510.6600; 7510.6700; 7510.6800; 7510.6900; 7510.6910; 7600.0100; 7600.0200; 7600.0300; 7600.0400; 7600.0500; 7600.0600; 7600.0700; 7600.0800; 7600.0900; 7600.1000; 7600.1100; 7600.1200; 7600.1300; 7600.1400; 7600.1500; 7600.1600; 7600.1700; 7600.1800; 7600.1900; 7600.2000; 7600.2100; 7600.2200; 7600.2300; 7600.2400; 7600.2500; 7600.2600; 7600.2700; 7600.2800; 7600.2900; 7600.3000; 7600.3100; 7600.3200; 7600.3300; 7600.3400; 7600.3500; 7600.3600; 7600.3700; 7600.3800; 7600.3900; 7600.4000; 7600.4100; 7600.4200; 7600.4300; 7600.4400; 7600.4500; 7600.4600; 7600.4700; 7600.4800; 7600.4900; 7600.5000; 7600.5100; 7600.5200; 7600.5300; 7600.5400; 7600.5500; 7600.5600; 7600.5700; 7600.5800; 7600.5900; 7600.6000; 7600.6100; 7600.6200; 7600.6300; 7600.6400; 7600.6500; 7600.6600; 7600.6700; 7600.6800; 7600.6900; 7600.7000; 7600.7100; 7600.7200; 7600.7210; 7600.7300; 7600.7400; 7600.7500; 7600.7600; 7600.7700; 7600.7750; 7600.7800; 7600.7900; 7600.8100; 7600.8200; 7600.8300; 7600.8400; 7600.8500; 7600.8600; 7600.8700; 7600.8800; 7600.8900; 7600.9000; 7600.9100; 7600.9200; 7600.9300; 7600.9400; 7600.9500; 7600.9600; 7600.9700; 7600.9800; 7600.9900; 7625.0100; 7625.0110; 7625.0120; 7625.0200; 7625.0210; 7625.0220; 7625.0230; 8120.1100, subpart 3; 8121.0500, subpart 2; 8130.9912; 8130.9913; 8130.9916; 8130.9920; 8130.9930; 8130.9956; 8130.9958; 8130.9968; 8130.9972; 8130.9980; 8130.9992; 8850.6900; 9540.0100; 9540.0200; 9540.0300; 9540.0400; 9540.0500; 9540.1000; 9540.1100; 9540.1200; 9540.1300; 9540.1400; 9540.1500; 9540.2000; 9540.2100; 9540.2200; 9540.2300; 9540.2400; 9540.2500; 9540.2600; and 9540.2700.

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. There were 70 yeas and 58 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Greiling     Lieder       Olson, E.    Sarna
Bakk         Hasskamp     Long         Opatz        Schumacher
Brown        Hausman      Lourey       Orenstein    Simoneau
Carlson      Huntley      Luther       Orfield      Skoglund
Carruthers   Jaros        Mahon        Ostrom       Smith
Clark        Jefferson    Mares        Otremba      Solberg
Cooper       Johnson, A.  Mariani      Pelowski     Trimble
Dawkins      Johnson, R.  Marko        Perlt        Tunheim
Delmont      Kahn         McCollum     Peterson     Wagenius
Dorn         Kalis        McGuire      Pugh         Warkentin
Entenza      Kelley       Milbert      Rest         Wejcman
Farrell      Kelso        Munger       Rhodes       Wenzel
Garcia       Kinkel       Murphy       Rice         Winter
Greenfield   Leighton     Ness         Rukavina     Sp.Anderson,I

Abrams       Erhardt      Koppendrayer Onnen        Sykora
Anderson, B. Finseth      Kraus        Osskopp      Tompkins
Bettermann   Girard       Krinkie      Osthoff      Tuma
Bishop       Goodno       Larsen       Ozment       Van Dellen
Boudreau     Haas         Leppik       Paulsen      Van Engen
Bradley      Hackbarth    Lindner      Pawlenty     Vickerman
Broecker     Harder       Lynch        Pellow       Weaver
Commers      Holsten      Macklin      Seagren      Wolf
Daggett      Jennings     McElroy      Stanek       Worke
Davids       Johnson, V.  Molnau       Sviggum      Workman 
Dehler       Knight       Mulder       Swenson, D.  
Dempsey      Knoblach     Olson, M.    Swenson, H.  

The Speaker resumed the Chair.

S. F. No. 537 was reported to the House.

Carruthers moved to amend S. F. No. 537, the unofficial engrossment, as follows:

Page 2, line 35, after the second comma, insert "or a work stoppage"

The motion prevailed and the amendment was adopted.

S. F. No. 537, A bill for an act relating to drivers' licenses; requiring the refund of license fees to applicants who do not receive licenses, duplicate licenses, permits, or Minnesota identification cards within six weeks; requesting legislative audit commission evaluation of driver's license and identification card program; amending Minnesota Statutes 1994, sections 171.06, by adding a subdivision; and 171.07, subdivisions 1 and 3.

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. There were 125 yeas and 2 nays as follows:

Those who voted in the affirmative were:

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

Dehler       Garcia                    

S. F. No. 538, A bill for an act relating to state agencies; requiring the refund of license fees to certain applicants if licenses are not issued within six weeks; proposing coding for new law in Minnesota Statutes, chapter 15.

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 124 yeas and 6 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Olson, E.    Seagren
Anderson, B. Garcia       Kraus        Olson, M.    Simoneau
Anderson, R. Girard       Krinkie      Onnen        Skoglund
Bakk         Goodno       Larsen       Opatz        Smith
Bertram      Greenfield   Leighton     Orenstein    Solberg
Bettermann   Greiling     Leppik       Orfield      Stanek
Bishop       Haas         Lieder       Osskopp      Sviggum
Boudreau     Hackbarth    Long         Osthoff      Tomassoni
Bradley      Harder       Lourey       Ostrom       Tompkins
JOURNAL OF THE HOUSE - 60th Day - Top of Page 4342

Broecker     Hasskamp     Luther       Otremba      Trimble
Brown        Hausman      Lynch        Ozment       Tuma
Carlson      Holsten      Macklin      Paulsen      Tunheim
Carruthers   Huntley      Mahon        Pawlenty     Van Dellen
Clark        Jaros        Mares        Pellow       Van Engen
Commers      Jefferson    Mariani      Pelowski     Vickerman
Cooper       Jennings     Marko        Perlt        Wagenius
Daggett      Johnson, A.  McCollum     Peterson     Warkentin
Davids       Johnson, R.  McElroy      Pugh         Weaver
Dawkins      Johnson, V.  McGuire      Rest         Wenzel
Delmont      Kahn         Milbert      Rhodes       Winter
Dempsey      Kalis        Molnau       Rice         Wolf
Dorn         Kelley       Mulder       Rostberg     Worke
Entenza      Kelso        Munger       Rukavina     Workman
Erhardt      Kinkel       Murphy       Sarna        Sp.Anderson,I
Farrell      Knoblach     Ness         Schumacher   

Dehler       Lindner      Swenson, H.  
Knight       Swenson, D.  Sykora       

S. F. No. 1290 was reported to the House.

Delmont moved that S. F. No. 1290 be returned to General Orders. The motion prevailed.

S. F. No. 732 was reported to the House.

Smith moved to amend S. F. No. 732 as follows:

Page 39, line 18, delete the blank and insert "January 1, 1996"

Page 69, delete lines 26 to 29

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 732, A bill for an act relating to commerce; enacting the revised article 8 of the uniform commercial code proposed by the national conference of commissioners on uniform state laws; regulating investment securities; amending Minnesota Statutes 1994, sections 336.1-105; 336.1-206; 336.4-104; 336.5-114; 336.9-103; 336.9-105; 336.9-106; 336.9-203; 336.9-301; 336.9-302; 336.9-304; 336.9-305; 336.9-306; 336.9-309; 336.9-312; and 336.10-104; proposing coding for new law in Minnesota Statutes, chapter 336; repealing Minnesota Statutes 1994, sections 336.8-101; 336.8-102; 336.8-103; 336.8-104; 336.8-105; 336.8-106; 336.8-107; 336.8-108; 336.8-201; 336.8-202; 336.8-203; 336.8-204; 336.8-205; 336.8-206; 336.8-207; 336.8-208; 336.8-301; 336.8-302; 336.8-303; 336.8-304; 336.8-305; 336.8-306; 336.8-307; 336.8-308; 336.8-309; 336.8-310; 336.8-311; 336.8-312; 336.8-313; 336.8-314; 336.8-315; 336.8-316; 336.8-317; 336.8-318; 336.8-319; 336.8-320; 336.8-321; 336.8-401; 336.8-402; 336.8-403; 336.8-404; 336.8-405; 336.8-406; 336.8-407; and 336.8-408.

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. There were 129 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Kraus        Onnen        Smith
Anderson, B. Garcia       Krinkie      Opatz        Solberg
Anderson, R. Girard       Larsen       Orenstein    Stanek
Bakk         Goodno       Leighton     Orfield      Sviggum
Bertram      Greenfield   Leppik       Osskopp      Swenson, D.
Bettermann   Greiling     Lieder       Osthoff      Swenson, H.
Bishop       Haas         Lindner      Ostrom       Sykora
Boudreau     Hackbarth    Long         Otremba      Tomassoni
Bradley      Harder       Lourey       Ozment       Tompkins
JOURNAL OF THE HOUSE - 60th Day - Top of Page 4343

Broecker     Hasskamp     Luther       Paulsen      Trimble
Brown        Hausman      Lynch        Pawlenty     Tuma
Carlson      Holsten      Macklin      Pellow       Tunheim
Carruthers   Huntley      Mahon        Pelowski     Van Dellen
Clark        Jaros        Mares        Perlt        Van Engen
Commers      Jefferson    Mariani      Peterson     Vickerman
Cooper       Jennings     Marko        Pugh         Wagenius
Daggett      Johnson, A.  McCollum     Rest         Warkentin
Davids       Johnson, R.  McElroy      Rhodes       Weaver
Dawkins      Johnson, V.  McGuire      Rice         Wejcman
Dehler       Kahn         Milbert      Rostberg     Wenzel
Delmont      Kalis        Molnau       Rukavina     Winter
Dempsey      Kelley       Mulder       Sarna        Wolf
Dorn         Kelso        Munger       Schumacher   Worke
Entenza      Kinkel       Murphy       Seagren      Workman
Erhardt      Knoblach     Ness         Simoneau     Sp.Anderson,I
Farrell      Koppendrayer Olson, E.    Skoglund     

Knight       Olson, M.                 

Pursuant to rule 1.10, Solberg requested immediate consideration of S. F. No. 467.

S. F. No. 467 was reported to the House.

Kelley moved to amend S. F. No. 467 as follows:

Delete everything after the enacting clause and insert:

Section 1. [174.70] [PUBLIC SAFETY RADIO COMMUNICATIONS.]

The commissioner of transportation may exercise the powers granted in this chapter and in sections 473.891 to 473.905, to plan and implement the communications system as provided in sections 473.891 to 473.905.

Sec. 2. [473.891] [DEFINITIONS.]

Subdivision 1. [APPLICATIONS.] The definitions in this section apply to sections 473.891 to 473.905.

Subd. 2. [BOARD.] "Board" or "radio board" means the metropolitan radio board.

Subd. 3. [FIRST PHASE.] "First phase" or "first phase of the regionwide public safety radio communications system" means the initial backbone which serves state and regional agencies.

Subd. 4. [LOCAL ELECTED OFFICIALS.] "Local elected officials" means any elected official of a local government.

Subd. 5. [LOCAL GOVERNMENT.] "Local government" means any county, home rule charter or statutory city, or town, lying in whole or in part within the metropolitan area.

Subd. 6. [NPSPAC CHANNELS.] "NPSPAC channels" or "National Public Safety Planning Advisory Committee channels" means the following 800 megahertz channels: 821 to 824 and 866 to 869 megahertz.

Subd. 7. [PLAN.] "Plan" or "regionwide public safety radio system communication plan" means the plan adopted by the metropolitan radio board for a regionwide public safety radio communications system.

Subd. 8. [SUBSYSTEMS.] "Subsystems" or "public safety radio subsystems" means systems identified in the plan as subsystems interconnected by the first phase backbone in subsequent phases and operated by local government units for their own internal operations.

Subd. 9. [SYSTEM; BACKBONE SYSTEM.] "System" or "backbone system" means a regionwide public safety radio communication system that consists of a shared regionwide infrastructure network, the elements of which are identified in the regionwide public safety radio communications system plan, and subsystems interconnected by the shared regionwide network.

Sec. 3. [473.893] [BOARD; MEMBERSHIP, ADMINISTRATION.]

Subdivision 1. [GENERAL.] The metropolitan radio board is established as a political subdivision. The board shall be organized, structured, and administered as provided in this section. Until funds to administer the board become available under section 473.894, subdivision 19, the metropolitan council shall provide office space and administrative support to the board at no cost.

Subd. 2. [MEMBERSHIP.] The board consists of 17 members. Fifteen members shall be local officials and shall include:

(1) one county commissioner appointed by each respective county board from each of the seven metropolitan counties;

(2) an elected official from each of the cities of Minneapolis, St. Paul, and Bloomington appointed by each respective city governing body;

(3) two elected officials from other metropolitan cities appointed by the governor, who shall consider recommendations made by the Association of Metropolitan Municipalities when making these appointments;

(4) an elected official from a county or a city within a county in Minnesota that is contiguous to the metropolitan area appointed by the governor, who shall consider recommendations made by the League of Minnesota Cities when making this appointment;

(5) a sheriff appointed by the governor, who shall consider recommendations made by the metropolitan sheriffs association when making this appointment; and

(6) a police chief appointed by the governor, who shall consider recommendations made by the Minnesota police chiefs association when making this appointment.

The 16th member shall be a member of the metropolitan council appointed by the council. The 17th member shall be the director of electronic communications of the Minnesota department of transportation. As provided in section 473.894, subdivision 20, the chair of the technical operations committee serves as an ex officio member of the board.

The members shall be appointed within 30 days of the effective date of this act. Upon the effective date of this act, the metropolitan council shall inform the entities listed in this subdivision of the appointments required by this subdivision and shall provide whatever assistance is necessary to facilitate the appointment process and establish the radio board.

Board members have no set term and remain on the board until a successor is appointed as provided by this subdivision. However, with respect to those board members who, under this subdivision, must be elected officials, a successor must be appointed as provided by this subdivision no later than the date that a member is no longer an elected official, unless the member dies while in office, in which case a successor must be named as soon as practicable.

Subd. 3. [OFFICERS.] The officers of the board are: chair; vice-chair; secretary; and treasurer. The chair shall preside at all meetings of the board, and in the chair's absence, the vice-chair shall preside. The secretary shall keep a complete record of the minutes of each meeting. The treasurer shall keep the financial records of the board. The chair and vice-chair of the board shall be selected by a majority vote from the members of the board. The secretary and treasurer need not be members of the board.

Subd. 4. [CONTRACTS.] Contracts and other written instruments of the board shall be signed by the chair or vice-chair and if the board has an executive director, by the executive director of the board pursuant to authority from the board.

Subd. 5. [BYLAWS.] The board shall conduct its business in accordance with bylaws duly adopted by a majority of the board.

Subd. 6. [VOTING.] Each member has one vote. The majority of the voting power of the board constitutes a quorum although a smaller number may adjourn from time to time. Any motion, other than adjournment, shall be favored by a majority of the voting power of the board in order to carry.

Sec. 4. [473.894] [POWERS OF THE BOARD.]

Subdivision 1. [GENERAL.] The board has the powers necessary and convenient to discharge the duties imposed on it by law, including those listed in this section.

Subd. 2. [PLANNING.] The board shall review and, within 90 days of the effective date of this act, adopt the regionwide public safety radio system communication plan prepared by the metropolitan radio systems planning committee pursuant to Laws 1993, chapter 313, section 3, subdivision 2, for using the 800 megahertz and other frequencies available for public safety use. The plan must include, at a minimum:

(1) a system design recommended by the Minnesota commissioner of transportation for the first phase consisting of a shared regionwide infrastructure network;

(2) a system design for subsequent phases; and

(3) a plan for assignment of frequencies to the regional network and to each subsystem.

No later than 30 days prior to adoption of the plan by the board, the board shall submit the plan to the metropolitan council for review in accordance with section 473.165, clause (1). The council may make comments to the board about the plan in accordance with section 473.165, clause (2), except that the deadline for comments shall be made within 30 days after submission of the plan to the council.

If, within the 30-day review period, the council has made no comment on the plan or has made no findings as provided in section 473.165, clause (2), the plan shall go into effect as of the date of adoption by the board.

If, within the 30-day review period, the council has made findings as provided in section 473.165, clause (2), the board and the council shall follow the procedure provided in section 473.165, clause (2). The board may adopt revisions to the plan in the same manner as is provided in this subdivision for adoption of the plan.

Subd. 3. [APPLICATION TO FCC.] Within 180 days from adoption of the regionwide public safety radio system communication plan the commissioner of transportation, on behalf of the state of Minnesota, shall use the plan adopted by the board under subdivision 2 to submit an extended implementation application to the Federal Communications Commission (FCC) for the NPSPAC channels and other public safety frequencies available for use in the metropolitan area and necessary to implement the plan. Local governments and all other public or private entities eligible under part 90 of the FCC rules shall not apply for public safety channels in the 821 to 824 and 866 to 869 megahertz bands for use within the metropolitan counties until the FCC takes final action on the regional application submitted under this section. Exceptions to the restrictions on the application for the NPSPAC channels may be granted by the radio board. The Minnesota department of transportation shall hold the master system licenses for all public safety frequencies assigned to the metropolitan area issued by the FCC under the board's plan and these channels shall be used for the implementation of the plan. Local governments and other public and private entities eligible under part 90 of the FCC rules may apply to the FCC as colicensees for subscriber equipment and those portions of the network infrastructure owned by them. Application for colicensing under this section shall require the concurrence of the radio board.

Subd. 4. [PLAN IMPLEMENTATION.] The board shall supervise the implementation of the regionwide public safety radio system communication plan adopted under subdivision 2 and must ensure that the system is built, owned, operated, and maintained in accordance with the plan. The board will work with the region 22 NPSPAC committee to incorporate the board's adopted plan into federal communication system regulations.

Subd. 5. [REQUIRED MINIMUM LEVEL OF SERVICE FOR LOCAL GOVERNMENTS.] Subject to system capacity and channel availability, the board shall ensure that all local governments, quasi-public service operations, and private entities in the metropolitan counties that are eligible to use radio frequencies reserved for public safety use have adequate communications capacity and intercommunications capability.

Subd. 6. [BACKBONE AND SUBSYSTEMS.] In the regionwide public safety radio system communication plan, the board shall define the backbone consistent with the recommendations made by the commissioner of transportation and the subsystems of the system, the timing and phasing of system development, the geographic scope of the system, the timing and extent of participation in the system including participation by additional entities, and standards for system performance. System performance standards shall be developed in consultation with the commissioner of transportation. The initial backbone shall serve state and regional agencies and shall include capabilities for regionwide mutual aid and emergency medical services communications and potentially provide alternative routing for 911 services.

Subd. 7. [EXISTING CHANNEL ALLOCATION.] The board shall coordinate allocation of existing radio channels made available to the board by conversion to 800 megahertz or other public safety frequencies.

Subd. 8. [COST APPORTIONMENT.] The board shall determine how capital, operating, and administrative costs of the first phase system will be spread across users of the regionwide public safety radio communication system, including costs for additional participants.

Subd. 9. [EXCESS CAPACITY ALLOCATION.] The board shall determine how excess capacity provided in the initial system design in the regionwide public safety radio communication system will be allocated.

Subd. 10. [SYSTEM ENHANCEMENT REGULATION.] The board shall determine the extent to which local governments, quasi-public service corporations, and private entities eligible to use the system may provide system enhancements at their own direct expense.

Subd. 11. [PERFORMANCE STANDARDS.] The board shall set performance standards for operation of the backbone and subsystems and may modify standards as necessary to meet changing needs.

Subd. 12. [USE PRIORITIES.] The board shall establish priorities or protocols for use of the system.

Subd. 13. [FIRST PHASE CONSTRUCTION.] In order to implement the first phase backbone, the board shall contract with the state of Minnesota, through the commissioner of transportation for construction, ownership, operation, maintenance, and enhancement of these elements of the first phase backbone as defined in the plan. The commissioner, under appropriate state law, shall contract for, or procure by purchase or lease, (including joint purchase and lease agreements), construction, installation of materials, supplies and equipment, and other services as may be needed to build, operate, and maintain the first phase system network. In accordance with the terms of the contract entered into with the radio board under this subdivision, the department of transportation will own, operate, and maintain those elements identified by the radio board in the plan as the first phase. The state will finance and pay for its share of the first phase.

Subd. 14. [EXECUTIVE DIRECTOR.] The board may employ and fix the duties and compensation of an executive director who shall supervise the implementation of the plan including the design, ownership, construction, and operation of the first phase system and shall administer the business affairs of the board. The executive director is eligible for membership in the Minnesota state retirement system. Until funds to administer the board become available under subdivision 19, the metropolitan council shall provide to the board an executive director who will be a staff member of the council. The executive director shall serve at the pleasure of the board.

Subd. 15. [SYSTEM USE BY NONGOVERNMENTAL ENTITIES.] The board may contract with entities in the metropolitan counties eligible to use the public safety channels other than local governments, to provide them with public safety radio communication service. The board may contract with eligible jurisdictions and entities outside the metropolitan counties for inclusion in the regionwide public safety radio communication system.

Subd. 16. [MINUTES OF BOARD MEETINGS.] The board shall keep proper minutes of all its proceedings which shall be open to public inspection at all reasonable times.

Subd. 17. [ACCOUNTING.] The board shall keep proper and adequate books of accounts showing all its receipts and disbursements by date, source, and amount. The board must be audited at least once each year. The board may elect to be audited by a certified public accountant or by the state auditor.

Subd. 18. [INSURANCE.] The board may obtain suitable, proper, and adequate public liability and workers' compensation insurance and other insurance as it deems necessary, including but not limited to, insurance against the liability of the board or its officers and employees for personal injury or death and property damage or destruction, with the force and effect stated in chapter 466, and against risks of damage to or destruction of any of its facilities, equipment, or other property.

Subd. 19. [USER FEES.] In accordance with the plan authorized in subdivision 2, the board may establish and impose user fees on entities using the first phase system to cover the board's costs of implementing the plan and the costs of operating the first phase system in the metropolitan area. The metropolitan council will collect the user fees.

Subd. 20. [TECHNICAL OPERATIONS COMMITTEE.] The board shall establish a technical operations committee composed of representatives of the following functional categories to advise it in carrying out its purposes:

(1) Minnesota department of public safety;

(2) Minnesota department of transportation;

(3) sheriffs;

(4) police;

(5) fire protection;

(6) emergency medical service;

(7) public works;

(8) civil defense;

(9) metro 911 telephone board;

(10) entities using 800 megahertz prior to initiation of the regional system;

(11) managers or purchasing agents possessing expertise from a general perspective;

(12) representatives of local units of government; and

(13) regionwide public safety radio communication system users.

The members of the technical operations committee serve without compensation. The chair of the technical operations committee is an ex officio member of the radio board.

Subd. 21. [CONTRACTS.] The board may enter into contracts necessary to carry out its responsibilities.

Subd. 22. [PROPERTY.] The board may acquire by purchase, lease, gift, or grant, property, both real and personal, and interests in property necessary for the accomplishment of its purposes and may sell or otherwise dispose of property which it no longer requires.

Subd. 23. [GIFTS; GRANTS.] The board may apply for, accept, and disburse gifts, grants, or loans from the United States, the state, or from any person for any of its purposes. It may enter into an agreement required for the gifts, grants, or loans and may hold, use, and dispose of money or property received according to the terms of the gift, grant, or loan.

Subd. 24. [AUTHORITY TO LITIGATE.] The board may sue and be sued.

Sec. 5. [473.895] [ADVERSE INTERESTS OF BOARD MEMBERS.]

As provided in section 471.87, no member of the board shall have any personal or financial interest in any sale, lease, or other contract made by the board. Any violation of section 471.87 may make the sale, lease, or other contract voidable by the board. Upon conviction for a violation of section 471.87, a board member is automatically disqualified from further service on the board.

Sec. 6. [473.896] [COMPENSATION OF BOARD MEMBERS.]

Subdivision 1. [PER DIEM AND EXPENSES.] Except as provided in subdivision 2, and unless otherwise prohibited by law, each board member of the radio board shall be reimbursed for actual and necessary expenses incurred in the performance of duties. The chair shall be paid a per diem in the same amount as is provided in section 15.0575, subdivision 3, for attending meetings, monthly, executive, and special, and board members shall be paid a per diem in the same amount as is provided in section 15.0575, subdivision 3, for attending meetings, monthly, executive, and special. A board member who receives a per diem from the board member's county or city shall not be paid a per diem for the same day by the board for attending meetings of the board. The annual budget of the board shall provide, as a separate account, anticipated expenditures for per diem, travel, and associated expenses for the chair and members, and compensation or reimbursement shall be made to the chair or members only when budgeted.

Subd. 2. [LIMITATION.] A board member whose annual public salary is $25,000 or more shall only be reimbursed for expenses related to travel.

Sec. 7. [473.897] [FINANCE.]

Subdivision 1. [BUDGET PREPARATION; REVIEW AND APPROVAL.] The board shall prepare a proposed budget by August 1 of each year. The budget shall include operating revenues and expenditures for operation, administration, and maintenance. In addition, the budget must show for each fiscal year of the state biennium:

(1) the estimated operating revenues from all sources including funds on hand at the beginning of the year, and estimated expenditures for costs of operation, administration, maintenance, and debt service;

(2) capital improvement funds estimated to be on hand at the beginning of the year and estimated to be received during the year from all sources and estimated cost of capital improvements to be paid out or expended during the year, all in such detail and form as the council may prescribe; and

(3) the estimated source and use of pass-through funds.

As early as practicable before August 15 of each year, the board shall hold a public hearing on a draft of the proposed budget. Along with the draft, the board shall publish a report on user charges. The report must include an estimated analysis of the changes in user charges, rates, and fees that will be required by the board's budget. Not less than 14 days before the hearing, the board shall publish notice of the hearing in a newspaper having general circulation in the metropolitan area, stating the date, time, and place of hearing, and the place where the proposed budget and report on user charges may be examined by any interested person.

Following the hearing, the board shall publish a report of the hearing that summarizes the comments received and board's response. The council shall approve or disapprove the entire budget by October 1 of each year. The council may disapprove only if the budget does not have adequate reserves to meet debt service. If the council disapproves the budget in accordance with this subdivision, the board shall, by November 1, resubmit to the council for approval, a budget which meets the requirements for council approval as provided in this subdivision. The council shall approve or disapprove the entire resubmitted budget by December 1.

Before December 15 of each year, the board shall, by resolution, adopt a final budget. The board shall file its final budget with the council on or before December 20 of each year. The council shall file the budgets with the secretary of the senate and the clerk of the house of representatives not later than January 1 of each year. Before adoption, the board must submit any budget amendment which would affect debt service reserves to the council for review. The council has 15 days to approve or disapprove the amendment. The council shall disapprove the budget amendment only if the budget does not have adequate reserves to meet debt service.

Except in an emergency, for which procedures must be established by the board, the board and its officers, agents, and employees may not spend money for any purpose, other than debt service, without an appropriation by the board, and no obligation to make such an expenditure shall be enforceable except as the obligation of the person or persons incurring it. The creation of any debt obligation or the receipt of any federal or state grant is a sufficient appropriation of the proceeds for the purpose for which it is authorized, and of the tax or other revenues pledged to pay the obligation and interest on it whether or not specifically included in any annual budget. After obtaining the approval of the council, the board may amend the budget at any time by transferring any appropriation from one purpose to another, except appropriations of the proceeds of bonds issued for a specific purpose. The council shall disapprove only if the amended budget does not have adequate reserves to meet debt service.

Subd. 2. [PROGRAM EVALUATION.] The budget procedure of the board must include a substantive assessment and evaluation of the effectiveness of each significant part of the regionwide public safety radio communication system implementation plan adopted by the board with, to the extent possible, quantitative information on the status, progress, costs, benefits, and effects of each program.

The board shall transmit the evaluation to the metropolitan council annually.

Subd. 3. [COUNCIL REPORT TO LEGISLATURE.] Biennially the council shall submit a report to the legislature detailing the board's activities and finances for the previous year, the extent to which the system has been expanded beyond the metropolitan area, and the appropriateness of transferring responsibility for the metropolitan radio board to a state agency.

Subd. 4. [RESALE OF SERVICES OR CAPACITY PROHIBITED.] Neither the council, the board, or any local government unit may resell any service or capacity of this system to a nonpublic entity.

Sec. 8. [473.898] [REVENUE BONDS; OBLIGATIONS.]

Subdivision 1. [AUTHORIZATION.] The council, if requested by a vote of at least two-thirds of all of the members of the metropolitan radio board may, by resolution, authorize the issuance of its revenue bonds for any of the following purposes to:

(1) provide funds for regionwide mutual aid and emergency medical services communications;

(2) provide funds for the elements of the first phase of the regionwide public safety radio communications system that the board determines are of regionwide benefit and support mutual aid and emergency medical services communication including, but not limited to, costs of master controllers of the backbone; or

(3) refund bonds issued under this section.

Subd. 2. [PROCEDURE.] The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues, except as otherwise provided in sections 473.891 to 473.905 and the council shall have the same powers and duties as a municipality and its governing body in issuing bonds under chapter 475. The bonds may be sold at any price and at public or private sale as determined by the council.

The bonds shall be payable from and secured by a pledge of the emergency telephone service fee provided in chapter 403 and shall not represent or constitute a general obligation or debt of the council and shall not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any debt limitation.

Subd. 3. [LIMITATIONS.] The principal amount of the bonds issued pursuant to subdivision 1, exclusive of any original issue discount, shall not exceed the amount of $10,000,000 plus the amount the council determines necessary to pay the costs of issuance, fund reserves, debt service, and pay for any bond insurance or other credit enhancement.

Subd. 4. [SECURITY.] The bonds may be secured by a bond resolution or a trust indenture entered into by the council with a corporate trustee within or outside the state which shall define the fee pledged for the payment and security of the bonds and for payment of all necessary and reasonable debt service expenses until all the bonds referred to in subdivision 1 are fully paid or discharged in accordance with law. The pledge shall be a valid charge on the emergency telephone service fee provided in chapter 403. No mortgage of or security interest in any tangible real or personal property shall be granted to the bondholders or the trustee, but they shall have a valid security interest in the revenues and bond proceeds received by the council and pledged to the payment of the bonds as against the claims of all persons in tort, contract, or otherwise, irrespective of whether the parties have notice and without possession or filing as provided in the Uniform Commercial Code, or any other law, subject however to the rights of the holders of any general obligation bonds issued under section 473.903. In the bond resolution or trust indenture, the council may make covenants as it determines to be reasonable for the protection of the bondholders.

Neither the council, nor any council member, officer, employee, or agent of the council, nor any person executing the bonds shall be liable personally on the bonds by reason of their issuance. The bonds are not payable from, and are not a charge upon, any funds other than the revenues and bond proceeds pledged to their payment. The council is not subject to any liability on the bonds and has no power to obligate itself to pay or to pay the bonds from funds other than the revenues and bond proceeds pledged. No holder of bonds has the right to compel any exercise of the taxing power of the council, except any deficiency tax levy the council covenants to certify under section 473.902, or

any other public body, to the payment of principal of or interest on the bonds. No holder of bonds has the right to enforce payment of principal or interest against any property of the council or other public body other than that expressly pledged for the payment of the bonds.

Sec. 9. [473.899] [DEPOSITORIES.]

The metropolitan council shall, from time to time, designate one or more national or state banks, or trust companies authorized to do banking business, as official depositories for money of the board and shall require the board's treasurer to deposit all or a part of such money in those institutions. The designation shall be in writing and shall set forth all the terms and conditions upon which the deposits are made and shall be signed by the chair and treasurer and made a part of the minutes of the board. Any bank or trust company designated shall qualify as a depository by furnishing a corporate surety bond or collateral in the amounts required by section 118.01. No bond or collateral shall be required to secure any deposit insofar as it is insured under federal law.

Sec. 10. [473.900] [MONEY; ACCOUNTS; INVESTMENTS.]

Subdivision 1. [TREASURER'S DUTIES.] All money received by the metropolitan council under section 473.894, subdivision 19, shall be deposited or invested by the board's treasurer and disposed of as the board may direct in accordance with its budget, provided that any money that has been pledged or dedicated by the metropolitan council to the payment of obligations or interest on them or expenses incident to them, or for any other specific purpose authorized by law, shall be paid by the board's treasurer into the fund to which they have been pledged.

Subd. 2. [FUNDS AND ACCOUNTS ESTABLISHED.] The metropolitan council shall establish funds and accounts as may be necessary or convenient to handle the receipts and disbursements of the board in an orderly fashion.

Subd. 3. [DEPOSITORIES; INVESTMENTS.] The money on hand in the funds and accounts may be deposited in the official depositories of the metropolitan council or invested as provided in this subdivision. The amount not currently needed or required by law to be kept in cash on deposit, may be invested in obligations authorized for the investment of municipal sinking funds by section 475.66. The money may also be held under certificates of deposit issued by any official depository of the metropolitan council.

Subd. 4. [USE OF BOND PROCEEDS.] The use of proceeds of all bonds issued by the metropolitan council for the purposes enumerated in section 473.898, subdivision 1, other than investment of all money on hand in any sinking fund or funds of the council, shall be governed by the provisions of chapter 475, the provisions of resolutions authorizing the issuance of the bonds, and by the trust indenture.

Sec. 11. [473.901] [USE OF EMERGENCY TELEPHONE SERVICE FEE; BUDGETS; APPROPRIATION TRANSFERS; AUDITS.]

Subdivision 1. [COSTS COVERED BY FEE.] Beginning July 1, 1995, the following costs shall be paid from money appropriated to the commissioner of administration for those costs from the 911 emergency telephone service account established under section 403.11:

(1) debt service costs and reserves for bonds issued pursuant to section 473.898;

(2) repayment of the right-of-way acquisition loans;

(3) costs of design, construction, maintenance of, and improvements to those elements of the first phase that support mutual aid communications and emergency medical services; or

(4) recurring charges for leased sites and equipment for those elements of the first phase that support actual aid and emergency medical communication services.

Money appropriated from the 911 emergency telephone service fee account shall be used to pay annual debt service costs and reserves for bonds issued pursuant to section 473.898 prior to use of fee money to pay other costs eligible under this subdivision. In no event shall the money appropriated from the 911 emergency telephone service fee account for the first phase radio system exceed an amount equal to four cents a month for each customer access line or other basic access service, including trunk equivalents as designated by the public utilities commission for access charge purposes and including cellular and other nonwire access services.

Subd. 2. [ANNUAL BUDGET OF RADIO BOARD.] The metropolitan council shall transmit the annual budget of the radio board to the commissioner of administration no later than December 15 of each year. The commissioner of administration shall include eligible costs for the regionwide public safety communication system in its request for legislative appropriations from the 911 emergency telephone service fee account. All eligible costs approved by the radio board shall be included in the commissioner of administration's appropriation request.

Subd. 3. [APPROPRIATION TRANSFERS.] Each month, before the 25th day of the month, the commissioner of administration shall transmit to the metropolitan council 1/12 of its total approved appropriation for the regionwide public safety communication system.

Sec. 12. [473.902] [OPERATING COSTS.]

Subdivision 1. [ALLOCATION OF OPERATING COSTS.] The current costs of the board in implementing regionwide public safety radio communication plan system and the first phase system shall be allocated among and paid by the following users, all in accordance with the regionwide public safety radio system communication plan adopted by the board:

(1) the state of Minnesota for its operations using the system in the metropolitan counties;

(2) all local government units using the system; and

(3) other eligible users of the system.

Subd. 2. [PAYMENTS TO RADIO BOARD; AMOUNTS DUE BOARD WHEN PAYABLE.] Charges payable to the board by users of the system may be made payable at those times during each year as the board determines, but those dates shall be fixed with reference to the dates on which tax, assessment, and revenue collections become available to the government units required to pay such charges.

Subd. 3. [COMPONENT MUNICIPALITIES OBLIGATIONS TO BOARD.] Each local government and other eligible users of the first phase system shall pay to the board all sums charged to it under this section, at the times and in the manner determined by the board. The governing body of each local government shall take all action that may be necessary to provide the funds required for these payments and to make them when due.

Subd. 4. [POWERS OF GOVERNMENT UNITS.] To accomplish any duty imposed on it by the council or radio board, the governing body of every local government in the metropolitan area may exercise the powers granted any municipality by chapters 117, 412, 429, 475, and by sections 115.46, 444.075, and 471.59.

Subd. 5. [DEFICIENCY TAX LEVIES.] If the governing body of any local government using the first phase system fails to meet any payment to the board under subdivision 1 when due, the metropolitan council may certify to the auditor of the county in which the government unit is located the amount required for payment of the amount due with interest at six percent per year. The auditor shall levy and extend the amount due, with interest, as a tax upon all taxable property in the government unit for the next calendar year, free from any existing limitations imposed by law or charter. This tax shall be collected in the same manner as the general taxes of the government unit, and the proceeds of the tax, when collected, shall be paid by the county treasurer to the board and credited to the government unit for which the tax was levied.

Sec. 13. [473.903] [SALE OF GENERAL OBLIGATION BONDS.]

Subdivision 1. [AMOUNT; PURPOSES.] The metropolitan council may by resolution authorize the issuance of general obligation bonds of the council, in an amount outstanding and undischarged at any time not more than $3,000,000, for which its full faith and credit and taxing powers shall be pledged for the council's share of the first phase. The metropolitan council may also issue general obligation bonds to refund outstanding obligations issued under this section. The amount of refunding bonds that may be issued from time to time shall not be subject to the dollar limitation contained in this subdivision nor the refunding bonds be included in computing the amount of bonds that may be issued within that dollar limitation.

Subd. 2. [SALE, TERMS, SECURITY.] The metropolitan council shall sell and issue the bonds in the manner provided in chapter 475 and shall have the same powers and duties as a municipality issuing bonds under that law, except that the approval of a majority of the electors shall not be required and the net debt limitations shall not apply. The bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes required for their payment

shall be levied by the council, shall not affect the amount or rate of taxes which may be levied by the council for other purposes, and shall be levied without limitation of rate or amount upon all taxable property in the transit taxing district and transit area as provided in section 473.446, subdivision 1.

Subd. 3. [TEMPORARY LOANS.] The metropolitan council may, after the authorization of bonds under this section, provide funds immediately required for the purposes of subdivision 1 by effecting temporary loans upon terms as it shall by resolution determine, evidenced by notes due in not exceeding 24 months from their date, payable to the order of the lender or to the bearer, to be repaid with interest from the proceeds of the bonds when issued and delivered to the purchaser. The temporary loans may be made without public advertisement.

Sec. 14. [473.904] [LOCAL PLANNING.]

Subdivision 1. [COUNTY PLANNING PROCESS.] No later than two years from the date of enactment of this act, each metropolitan county shall undertake and complete a planning process for its public safety radio subsystem to ensure participation by representatives of local government units, quasi-public service organizations, and private entities eligible to use the regional public safety radio system and to ensure coordination and planning of the local subsystems. Local governments and other eligible users shall cooperate with the county in its preparation of the subsystem plan to ensure that local needs are met. The radio board shall encourage the establishment by each metropolitan county of local public safety radio subsystem committees composed of representatives of local governments and other eligible users for the purposes of:

(1) establishing a plan for coordinated and timely use of the regionwide public safety radio system by the local governments and other eligible users within each metropolitan county; and

(2) assisting and advising the board in its implementation of the regional public safety radio plan by identification of local service needs and objectives.

The board shall also encourage the establishment of joint or multicounty planning for the regionwide public safety radio system and subsystems.

The board may provide local boards with whatever assistance it deems necessary and appropriate.

No metropolitan county or city of the first class shall be required to undertake a technical subsystem design to meet the planning process requirements of this subdivision or subdivision 2.

Subd. 2. [CITIES OF FIRST CLASS; PLANNING PROCESS.] Each city of the first class in the metropolitan counties shall have the option to participate in the county public safety radio subsystem planning process or develop its own plan.

Subd. 3. [SUBMISSION OF PLANS TO BOARD.] Each metropolitan county and each city of the first class in the metropolitan area which has chosen to develop its own plan shall submit the plan to the board for the board's review and approval.

Subd. 4. [LOCAL GOVERNMENT JOINDER.] Local government units, except for cities of the first class in the service organizations, and private entities eligible to use the regional public safety radio system cannot join the system until its county plan has been approved by the board.

Sec. 15. [473.905] [OPTIONAL LOCAL USE OF REGIONAL SYSTEM.]

Subdivision 1. [OPTIONS.] Use of the regional public safety radio system by local governments, quasi-public service organizations, and private entities eligible to use the system shall be optional and no local government or other eligible user of the system shall be required to abandon or modify current public safety radio communication systems or purchase new equipment until the local government or other eligible user elects to join the system. Public safety radio communication service to local governments and other eligible users who do not initially join the system shall not be interrupted. No local government or other eligible users who do not join the system shall be charged a user fee for the use of the system.

Subd. 2. [REQUIREMENTS TO JOIN.] Local governments and other entities eligible to join the regional public safety radio system which elect to join the system must do so in accordance with and meet the requirements of the provisions of the plan adopted by the radio board as provided in section 473.894, subdivision 2.

Sec. 16. [FIRST BUDGET; TEMPORARY FUNDING.]

Subdivision 1. [FIRST BUDGET.] The budget of the board prepared in 1995 need not be submitted to the council until October 1, 1995, and the council has 30 days to approve or disapprove the entire budget. The council may disapprove only if the budget does not have adequate reserves to meet debt service.

Subd. 2. [TEMPORARY FUNDING.] For fiscal year 1996, the appropriation from the 911 emergency telephone service fee account shall be $293,000. For fiscal year 1997, the appropriation from the 911 emergency telephone service fee account shall be $93,000.

Sec. 17. [APPROPRIATION.]

$194,000 is appropriated from the trunk highway fund to the commissioner of transportation for the biennium ending June 30, 1997, for the purposes of implementing the first phase of the public safety radio communications system as provided in Minnesota Statutes, sections 174.70 and 473.894.

Sec. 18. [APPLICATION.]

Sections 1 to 16 apply in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties.

Sec. 19. [EFFECTIVE DATE.]

Sections 1 to 16 and 18 are effective the day after final enactment. Section 17 is effective July 1, 1995.

Section 1. Minnesota Statutes 1994, section 352.01, subdivision 2a, is amended to read:

Subd. 2a. [INCLUDED EMPLOYEES.] (a) "State employee" includes:

(1) employees of the Minnesota historical society;

(2) employees of the state horticultural society;

(3) employees of the Disabled American Veterans, Department of Minnesota, Veterans of Foreign Wars, Department of Minnesota, if employed before July 1, 1963;

(4) employees of the Minnesota crop improvement association;

(5) employees of the adjutant general who are paid from federal funds and who are not covered by any federal civilian employees retirement system;

(6) employees of the state universities employed under the university activities program;

(7) currently contributing employees covered by the system who are temporarily employed by the legislature during a legislative session or any currently contributing employee employed for any special service as defined in clause (8) of subdivision 2b;

(8) employees of the armory building commission;

(9) permanent employees of the legislature and persons employed or designated by the legislature or by a legislative committee or commission or other competent authority to conduct a special inquiry, investigation, examination, or installation;

(10) trainees who are employed on a full-time established training program performing the duties of the classified position for which they will be eligible to receive immediate appointment at the completion of the training period;

(11) employees of the Minnesota safety council;

(12) any employees on authorized leave of absence from the transit operating division of the former metropolitan transit commission who are employed by the labor organization which is the exclusive bargaining agent representing employees of the transit operating division;

(13) employees of the metropolitan council, metropolitan parks and open space commission, metropolitan sports facilities commission, or the metropolitan mosquito control commission, or metropolitan radio board unless excluded or covered by another public pension fund or plan under section 473.141, subdivision 12, or 473.415, subdivision 3;

(14) judges of the tax court; and

(15) personnel employed on June 30, 1992, by the University of Minnesota in the management, operation, or maintenance of its heating plant facilities, whose employment transfers to an employer assuming operation of the heating plant facilities, so long as the person is employed at the University of Minnesota heating plant by that employer or by its successor organization.

(b) Employees specified in paragraph (a), clause (15), are included employees under paragraph (a) providing that employer and employee contributions are made in a timely manner in the amounts required by section 352.04. Employee contributions must be deducted from salary. Employer contributions are the sole obligation of the employer assuming operation of the University of Minnesota heating plant facilities or any successor organizations to that employer."

Delete the title and insert:

"A bill for an act relating to metropolitan government; providing for coordination and consolidation of public safety radio communications systems; providing governance and finance of the state and regional elements of a regionwide public safety radio communication system; extending the public safety channel moratorium; authorizing the use of 911 emergency telephone service fees for costs of the regionwide public safety radio communication system; authorizing the issuance of bonds by the metropolitan council; appropriating money; amending Minnesota Statutes 1994, section 352.01, subdivision 2a; proposing coding for new law in Minnesota Statutes, chapters 174; and 473."

The motion prevailed and the amendment was adopted.

Kelley moved to amend S. F. No. 467, as amended, as follows:

Page 13, line 22, before the period, insert ", except for those private entities eligible to hold Federal Communications Commission licenses in the public safety and special emergency radio services, as defined in the Code of Federal Regulations, title 47, part 90 (1994)"

Page 21, line 10, delete "in the" and insert ", quasi-public"

Page 22, after line 15, insert:

"Sec. 18. [SUNSET.]

The metropolitan radio board is abolished effective July 1, 1999. Effective July 1, 1999, the board's duties and responsibilities are transferred to the metropolitan council or an appropriate state agency, as provided by law, based on the reports submitted by the metropolitan council under section 7, subdivision 3, of this article. The designated agency is the successor to all the property, interests, obligations, and rules of the metropolitan radio board."

Page 22, line 16, delete "18" and insert "19"

Page 22, line 17, after "16" insert "and 18"

Page 22, line 19, delete "19" and insert "20"

Page 22, line 20, delete "18" and insert "19"

Page 22, line 21, after the second period, insert "Section 18 is effective July 1, 1999."

Correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Krinkie moved to amend S. F. No. 467, as amended, as follows:

Page 22, after line 18, insert:

"Sec. 19. [LOCAL APPROVAL.]

Notwithstanding section 645.023, this act is effective the day after 50 percent of the local governments in the metropolitan area have complied with the requirements of section 645.021, subdivision 3. "Local government" has the meaning given it in article 1, section 2, subdivision 5, of this act."

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 Krinkie amendment and the roll was called. There were 28 yeas and 103 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Dempsey      Kraus        Onnen        Sviggum
Bishop       Haas         Krinkie      Osskopp      Swenson, D.
Bradley      Hackbarth    Lindner      Paulsen      Tuma
Broecker     Harder       Mulder       Pawlenty     Workman 
Commers      Holsten      Ness         Pellow       
Dehler       Knight       Olson, M.    Rostberg     

Abrams       Garcia       Larsen       Orenstein    Stanek
Anderson, R. Girard       Leighton     Orfield      Swenson, H.
Bakk         Goodno       Leppik       Osthoff      Sykora
Bertram      Greenfield   Lieder       Ostrom       Tomassoni
Bettermann   Greiling     Long         Otremba      Tompkins
Boudreau     Hasskamp     Lourey       Ozment       Trimble
Brown        Hausman      Luther       Pelowski     Tunheim
Carlson      Huntley      Lynch        Perlt        Van Dellen
Carruthers   Jaros        Mahon        Peterson     Van Engen
Clark        Jefferson    Mares        Pugh         Vickerman
Cooper       Jennings     Mariani      Rest         Wagenius
Daggett      Johnson, A.  Marko        Rhodes       Warkentin
Dauner       Johnson, R.  McCollum     Rice         Weaver
Davids       Johnson, V.  McElroy      Rukavina     Wejcman
Dawkins      Kahn         McGuire      Sarna        Wenzel
Delmont      Kalis        Milbert      Schumacher   Winter
Dorn         Kelley       Molnau       Seagren      Wolf
Entenza      Kelso        Munger       Simoneau     Worke
Erhardt      Kinkel       Murphy       Skoglund     Sp.Anderson,I
Farrell      Knoblach     Olson, E.    Smith        
Finseth      Koppendrayer Opatz        Solberg      

S. F. No. 467, A bill for an act relating to metropolitan government; providing for coordination and consolidation of public safety radio communications systems; providing governance and finance of the state and regional elements of a regionwide public safety radio communication system; extending the public safety channel moratorium;

authorizing the use of 911 emergency telephone service fees for costs of the regionwide public safety radio communication system; authorizing the issuance of bonds by the metropolitan council; abolishing the metropolitan radio board on a certain date and transferring its duties and responsibilities; appropriating money; proposing coding for new law in Minnesota Statutes, chapters 174 and 473.

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. There were 105 yeas and 27 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Leighton     Orenstein    Swenson, H.
Anderson, R. Girard       Leppik       Orfield      Sykora
Bakk         Goodno       Lieder       Osthoff      Tomassoni
Bertram      Greenfield   Long         Ostrom       Trimble
Bettermann   Greiling     Lourey       Otremba      Tunheim
Bishop       Hackbarth    Luther       Ozment       Van Dellen
Boudreau     Hasskamp     Lynch        Pelowski     Van Engen
Brown        Hausman      Macklin      Perlt        Vickerman
Carlson      Hugoson      Mahon        Peterson     Wagenius
Carruthers   Huntley      Mares        Rest         Warkentin
Clark        Jaros        Mariani      Rhodes       Weaver
Cooper       Jefferson    McCollum     Rice         Wejcman
Daggett      Johnson, A.  McElroy      Rukavina     Wenzel
Dauner       Johnson, R.  McGuire      Sarna        Winter
Davids       Johnson, V.  Milbert      Schumacher   Wolf
Dawkins      Kahn         Molnau       Seagren      Worke
Dehler       Kalis        Munger       Simoneau     Sp.Anderson,I
Delmont      Kelley       Murphy       Skoglund     
Dorn         Kelso        Ness         Smith        
Entenza      Kinkel       Olson, E.    Solberg      
Erhardt      Knoblach     Onnen        Stanek       
Farrell      Koppendrayer Opatz        Swenson, D.  

Anderson, B. Haas         Krinkie      Paulsen      Tompkins
Bradley      Harder       Larsen       Pawlenty     Tuma
Broecker     Holsten      Lindner      Pellow       Workman 
Commers      Jennings     Mulder       Pugh         
Dempsey      Knight       Olson, M.    Rostberg     
Finseth      Kraus        Osskopp      Sviggum      

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

Abrams       Farrell      Knight       Ness         Smith
Anderson, B. Finseth      Knoblach     Olson, E.    Solberg
Anderson, R. Garcia       Koppendrayer Olson, M.    Stanek
Bakk         Girard       Kraus        Onnen        Sviggum
Bertram      Goodno       Krinkie      Opatz        Swenson, D.
Bettermann   Greenfield   Larsen       Orenstein    Swenson, H.
Bishop       Greiling     Leighton     Osskopp      Sykora
Boudreau     Haas         Lieder       Osthoff      Tomassoni
JOURNAL OF THE HOUSE - 60th Day - Top of Page 4357

Bradley      Hackbarth    Lindner      Ostrom       Tompkins
Broecker     Harder       Long         Otremba      Trimble
Brown        Hasskamp     Lourey       Ozment       Tuma
Carlson      Hausman      Luther       Paulsen      Tunheim
Carruthers   Holsten      Lynch        Pawlenty     Van Dellen
Clark        Hugoson      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         Wejcman
Dawkins      Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rostberg     Winter
Delmont      Kahn         Milbert      Sarna        Wolf
Dempsey      Kalis        Molnau       Schumacher   Workman
Dorn         Kelley       Mulder       Seagren      Sp.Anderson,I
Entenza      Kelso        Munger       Simoneau     
Erhardt      Kinkel       Murphy       Skoglund     

Kalis moved that H. F. No. 1010, as amended, be taken from the table.

A roll call was requested and properly seconded.

The question was taken on the Kalis motion and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 74 yeas and 53 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Farrell      Kelso        Ness         Sarna
Bakk         Garcia       Kinkel       Olson, E.    Schumacher
Bertram      Greenfield   Knoblach     Olson, M.    Simoneau
Bishop       Greiling     Leighton     Opatz        Skoglund
Brown        Hasskamp     Lieder       Orfield      Smith
Carlson      Hausman      Long         Osthoff      Solberg
Carruthers   Huntley      Lourey       Ostrom       Tomassoni
Clark        Jefferson    Luther       Otremba      Trimble
Dauner       Jennings     Mahon        Ozment       Tunheim
Davids       Johnson, A.  Mariani      Pelowski     Wagenius
Dawkins      Johnson, R.  Marko        Perlt        Wejcman
Delmont      Johnson, V.  McCollum     Peterson     Wenzel
Dempsey      Kahn         McGuire      Pugh         Winter
Dorn         Kalis        Milbert      Rest         Sp.Anderson,I
Entenza      Kelley       Munger       Rukavina     

Abrams       Girard       Larsen       Paulsen      Tompkins
Anderson, B. Goodno       Leppik       Pawlenty     Tuma
Bettermann   Haas         Lindner      Pellow       Van Dellen
Boudreau     Hackbarth    Lynch        Rhodes       Van Engen
Bradley      Harder       Macklin      Rostberg     Vickerman
Broecker     Holsten      Mares        Seagren      Warkentin
Commers      Hugoson      McElroy      Stanek       Weaver
Daggett      Knight       Molnau       Sviggum      Wolf
Dehler       Koppendrayer Mulder       Swenson, D.  Workman 
Erhardt      Kraus        Onnen        Swenson, H.  
Finseth      Krinkie      Osskopp      Sykora       

Abrams moved that the action whereby H. F. No. 1010, as amended, was given its third reading be now reconsidered.

A roll call was requested and properly seconded.

The question was taken on the Abrams motion and the roll was called.

Carruthers moved that those not voting be excused from voting. The motion prevailed.

There were 61 yeas and 69 nays as follows:

Those who voted in the affirmative were:

Abrams       Girard       Larsen       Paulsen      Tuma
Anderson, B. Goodno       Leppik       Pawlenty     Van Dellen
Bettermann   Haas         Lindner      Pellow       Van Engen
Bishop       Hackbarth    Lynch        Rhodes       Vickerman
Boudreau     Harder       Macklin      Rostberg     Warkentin
Bradley      Holsten      Mares        Schumacher   Weaver
Broecker     Hugoson      McElroy      Seagren      Wolf
Commers      Johnson, V.  Molnau       Stanek       Worke
Daggett      Knight       Mulder       Sviggum      Workman 
Davids       Knoblach     Ness         Swenson, D.  
Dehler       Koppendrayer Olson, M.    Swenson, H.  
Erhardt      Kraus        Onnen        Sykora       
Finseth      Krinkie      Osskopp      Tompkins     

Anderson, R. Farrell      Kelso        Murphy       Sarna
Bakk         Garcia       Kinkel       Olson, E.    Simoneau
Bertram      Greenfield   Leighton     Opatz        Skoglund
Brown        Greiling     Lieder       Orenstein    Smith
Carlson      Hasskamp     Long         Orfield      Solberg
Carruthers   Hausman      Lourey       Osthoff      Tomassoni
Clark        Huntley      Luther       Ostrom       Trimble
Cooper       Jefferson    Mahon        Otremba      Tunheim
Dauner       Jennings     Mariani      Pelowski     Wagenius
Dawkins      Johnson, A.  Marko        Perlt        Wejcman
Delmont      Johnson, R.  McCollum     Peterson     Wenzel
Dempsey      Kahn         McGuire      Pugh         Winter
Dorn         Kalis        Milbert      Rest         Sp.Anderson,I
Entenza      Kelley       Munger       Rukavina     

H. F. No. 1010, A bill for an act relating to public administration; authorizing spending to acquire and better public land and buildings and other public improvements of a capital nature with certain conditions; approving capital loans to independent school district Nos. 727, Big Lake, 362, Little Fork-Big Falls, and 36, Kelliher; authorizing issuance of bonds; reducing appropriations; reducing bond authorization; authorizing the commissioner of finance to cancel certain bond authorizations; authorizing the listing of state bonds or certificates of indebtedness on an exchange; providing for periodic review and cancellation of bond authorizations older than seven years; requiring reports of sale of certain state real property; relief from penalties for Red Wing sewer overflow; appropriating money with certain conditions; amending Minnesota Statutes 1994, sections 16A.672, by adding a subdivision; 16B.24, by adding a subdivision; 16B.335, subdivisions 1, 2, and 5; and 446A.12, subdivision 1; Laws 1994, chapter 643, sections 21, subdivision 4; and 26, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 16A; repealing Laws 1991, chapter 265, article 5, section 23, as amended.

The bill, as amended, was placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 77 yeas and 55 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Greenfield   Leighton     Opatz        Seagren
Bakk         Greiling     Lieder       Orenstein    Simoneau
Bertram      Hasskamp     Long         Orfield      Skoglund
Brown        Hausman      Lourey       Osthoff      Smith
Carlson      Huntley      Luther       Ostrom       Solberg
Clark        Jefferson    Mahon        Otremba      Tomassoni
Cooper       Jennings     Mariani      Ozment       Trimble
Dauner       Johnson, A.  Marko        Pelowski     Tunheim
Davids       Johnson, R.  McCollum     Perlt        Wagenius
Dawkins      Johnson, V.  McGuire      Peterson     Wejcman
Delmont      Kahn         Milbert      Pugh         Wenzel
Dempsey      Kalis        Munger       Rest         Winter
Dorn         Kelley       Murphy       Rice         Sp.Anderson,I
Entenza      Kelso        Ness         Rukavina     
Farrell      Kinkel       Olson, E.    Sarna        
Garcia       Knoblach     Olson, M.    Schumacher   
JOURNAL OF THE HOUSE - 60th Day - Top of Page 4359

Abrams  Erhardt      Kraus        Onnen        Sykora
Anderson, B. Finseth      Krinkie      Osskopp      Tompkins
Bettermann   Girard       Larsen       Paulsen      Tuma
Bishop       Goodno       Leppik       Pawlenty     Van Dellen
Boudreau     Haas         Lindner      Pellow       Van Engen
Bradley      Hackbarth    Lynch        Rhodes       Vickerman
Broecker     Harder       Macklin      Rostberg     Warkentin
Carruthers   Holsten      Mares        Stanek       Weaver
Commers      Hugoson      McElroy      Sviggum      Wolf
Daggett      Knight       Molnau       Swenson, D.  Worke
Dehler       Koppendrayer Mulder       Swenson, H.  Workman 

Carruthers moved that the vote whereby H. F. No. 1010, as amended, was not passed earlier today be now reconsidered. The motion prevailed.

Carruthers moved to lay H. F. No. 1010, as amended, on the table. The motion prevailed and H. F. No. 1010, as amended, was laid on the table.

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

Pursuant to rule 1.10, Rest requested immediate consideration of S. F. No. 1393.

S. F. No. 1393 was reported to the House.

Rest moved to amend S. F. No. 1393 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 373.40, subdivision 1, is amended to read:

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

(a) "Bonds" means an obligation as defined under section 475.51.

(b) "Capital improvement" means acquisition or betterment of public lands, buildings, or other improvements within the county for the purpose of a county courthouse, administrative building, health or social service facility, correctional facility, jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena, and roads and bridges. An improvement must have an expected useful life of five years or more to qualify. "Capital improvement" does not include light rail transit or any activity related to it or a recreation or sports facility building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming pool, exercise room or health spa), unless the building is part of an outdoor park facility and is incidental to the primary purpose of outdoor recreation.

(c) "Commissioner" means the commissioner of trade and economic development.

(d) "Metropolitan county" means a county located in the seven-county metropolitan area as defined in section 473.121 or a county with a population of 90,000 or more.

(e) "Population" means the population established by the most recent of the following (determined as of the date the resolution authorizing the bonds was adopted):

(1) the federal decennial census,

(2) a special census conducted under contract by the United States Bureau of the Census, or

(3) a population estimate made either by the metropolitan council or by the state demographer under section 4A.02.

(f) "Qualified indoor ice arena" means a facility that meets the requirements of section 2.

(g) "Tax capacity" means total taxable market value, but does not include captured market value.

Sec. 2. [373.43] [FINANCING AUTHORITY; ICE FACILITIES.]

A county may issue and sell its general obligations under chapter 475 to finance acquisition and construction of an indoor ice arena intended to be used predominantly for youth athletic activities if all the following conditions are met.

(a) The obligations are secured by a pledge of revenues from the facility.

(b) The county has entered into a qualified agreement. A qualified agreement means:

(1) a joint powers agreement with the school district or the city in which the facility is located that governs ownership, operation, and maintenance of the facility; or

(2) an agreement with a nonprofit corporation, qualifying under section 501(c)(3) of the Internal Revenue Code of 1986, that provides that the corporation will operate, manage, and maintain the facility; or

(3) any combination of agreements under clauses (1) and (2).

(c) The agreements under paragraph (b) provide that all parties must pay the principal and interest on obligations, if the revenues for the facility are insufficient to pay the obligations in full.

(d) The county board finds, based on analysis provided by a professional experienced in finance, that the facility's revenues and other available money will be sufficient to pay the obligations, without reliance on a property tax levy or the general purpose state aid of the county or any party to a joint powers agreement.

Sec. 3. [373.44] [REVENUE FINANCING AUTHORITY; ICE FACILITIES.]

For the purpose of acquiring, leasing, equipping, or maintaining land or buildings for use as an indoor ice arena as defined in section 2, a county has the same authority and powers granted to a city by section 471.191.

Sec. 4. [410.325] [TAX ANTICIPATION CERTIFICATES.]

Notwithstanding a contrary provision of other law or charter, a home rule charter city may issue tax anticipation certificates in the manner and subject to the limitations applicable to statutory cities under section 412.261. The certificates may also be issued in anticipation of federal and state aids, but the total amount of certificates issued against any fund for any year with interest on them must not exceed any limits in the charter relating to the total of the anticipated tax levy and the anticipated state aids for any fund not yet collected or received.

Sec. 5. Minnesota Statutes 1994, section 447.46, is amended to read:

447.46 [REVENUE PLEDGED.]

The county, city, or hospital district may pledge and appropriate the revenues to be derived from its operation of the facilities, except related medical facilities, to pay the principal and interest on the bonds when due and to create and maintain reserves for that purpose, as a first and prior lien on the revenues or, if so provided in the bond

resolution, as a lien on the revenues subordinate to the current payment of a fixed amount or percentage or all of the costs of running the facilities.

Sec. 6. Minnesota Statutes 1994, section 469.041, is amended to read:

469.041 [STATE PUBLIC BODIES, POWERS AS TO PROJECTS.]

For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of projects, any state public body may upon the terms, with or without consideration, as it may determine:

(1) Dedicate, sell, convey, or lease any of its interests in any property, or grant easements, licenses, or any other rights or privileges therein to an authority. Except in cities of the first class having a population of less than 200,000, the public body may pay the bonds of or make loans or contributions for redevelopment projects, and the receipt or expenditure of any money expended hereunder by the state public body shall not be included within the definition of any limitation imposed on per capita taxing or spending in the charter of the state public body. No state public body may use any revenues or money of that state public body to pay the bonds of or make any loans or contributions to any public housing project, except to a public low-rent housing project (i) for which financial assistance is provided by the federal government which requires a municipality or other local public body to use its revenues or money for a direct loan or grant to the project as a condition for federal financial assistance and (ii) where the local financial assistance for the project is authorized by resolution of the governing body of the municipality;

(2) Cause parks, playgrounds, recreational, community, education, water, sewer or drainage facilities, or any other works which it may undertake, to be furnished adjacent to or in connection with such projects;

(3) Approve, through its governing body or through an agency designated by it for the purpose, redevelopment plans, plan or replan, zone or rezone its parks; in the case of a city or town, make changes in its map; the governing body of any city may waive any building code requirements in connection with the development of projects;

(4) Cause services to be furnished to the authority of the character which it may otherwise furnish;

(5) Enter into agreements with respect to the exercise by it of its powers relating to the repair, closing, or demolition of unsafe, unsanitary, or unfit buildings;

(6) Do any and all things necessary or convenient to aid and cooperate in the planning, undertaking, construction, or operation of the projects;

(7) Incur the entire expense of any public improvements made by it in exercising the powers granted in sections 469.001 to 469.047;

(8) Enter into agreements with an authority respecting action to be taken by the state public body pursuant to any of the powers granted by sections 469.001 to 469.047; the agreements may extend over any period, notwithstanding any law to the contrary; and

(9) Furnish funds available to it from any source, including the proceeds of bonds, to an authority to pay all or any part of the cost to the authority of the activities authorized by section 469.012, subdivision 1, clause (7); and

(10) With respect to a housing development project for which an authority has issued bonds, exercise the powers available to a city under section 471.191 for a recreational program; provided that this power may only be exercised by a city or county in which the project is located or in accordance with a joint powers agreement with other cities or counties that have authorized the exercise of the powers for other projects as part of a common financing plan.

Sec. 7. Minnesota Statutes 1994, section 469.060, subdivision 1, is amended to read:

Subdivision 1. [POWER; PROCEDURE.] A port authority may issue bonds in the principal amount authorized by its city's council. The bonds may be issued in anticipation of income from any source. The bonds may be issued: (1) to secure funds needed by the authority to pay for acquired property or (2) for other purposes in sections 469.049, 469.050, and 469.058 to 469.068. The bonds must be in the amount and form and bear interest at the rate set by the city council. The authority shall sell the bonds to the highest bidder. The authority shall publish notice of the time and the place for receiving bids once at least two weeks before the bid deadline. Except as otherwise provided in sections 469.048 to 469.068, the issuance of the bonds is governed by chapter 475. The port authority when issuing

the bonds is a municipal corporation under chapter 475. Notwithstanding any contrary city charter provision or any general or special law, the bonds may be issued and sold without submission of the question to the electors of the city, provided that the ordinance of the governing body of the city authorizing issuance of the bonds by the port authority shall be subject to any provisions in the city charter pertaining to the procedure for referendum on ordinances enacted by the governing body.

Sec. 8. Minnesota Statutes 1994, section 469.102, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY; PROCEDURE.] An economic development authority may issue general obligation bonds in the principal amount authorized by two-thirds majority vote of its city's council. The bonds may be issued in anticipation of income from any source. The bonds may be issued: (1) to secure funds needed by the authority to pay for acquired property or (2) for other purposes in sections 469.090 to 469.108. The bonds must be in the amount and form and bear interest at the rate set by the city council. The authority shall sell the bonds to the highest bidder. The authority shall publish notice of the time and the place for receiving bids, once at least two weeks before the bid deadline. Except as otherwise provided in sections 469.090 to 469.108, the issuance of the bonds is governed by chapter 475. The authority when issuing the bonds is a municipal corporation under chapter 475.

Sec. 9. Minnesota Statutes 1994, section 471.16, subdivision 1, is amended to read:

Subdivision 1. Any city, however organized, or any town, county, school district, or any board thereof, or any incorporated post of the American Legion or any other incorporated veterans' organization, may operate such a program independently, or they may cooperate among themselves or with any nonprofit organization in its conduct and in any manner in which they may mutually agree; or they may delegate the operation of the program to a recreation board created by one or more of them, and appropriate money voted for this purpose to such board which may in turn support or cooperate with a nonprofit organization. In the case of school districts after May 15, 1978, the right to enter into such agreements with any other corporation, board or body hereinbefore designated where bonds are issued by the other party and revenue pledged for bonds issued pursuant to section 471.191, shall be authorized only upon obtaining the approval of a majority of the electors voting on the question at a regular or special school election.

Sec. 10. Minnesota Statutes 1994, section 471.191, subdivision 1, is amended to read:

Subdivision 1. Any city operating a program of public recreation and playgrounds pursuant to sections 471.15 to 471.19 may acquire or lease, equip, and maintain land, buildings, and other recreational facilities, including, but without limitation, outdoor or indoor swimming pools, skating rinks and arenas, athletic fields, golf courses, marinas, concert halls, museums, and facilities for other kinds of athletic or cultural participation, contests, and exhibitions, together with related automobile parking facilities as defined in section 459.14, and may expend funds for the operation of such program and borrow and expend funds for capital costs thereof pursuant to the provisions of this section. A school district operating a program of public recreation and playgrounds has the rights provided in this section. Any facilities to be operated by a nonprofit corporation, as contemplated in section 471.16, may be leased to the corporation upon such rentals and for such term, not exceeding 30 years, and subject to such other provisions as may be agreed; including but not limited to provisions (a) permitting the lessee, subject to whatever conditions are stated, to provide for the construction and equipment of the facilities by any means available to it and in the manner determined by it, without advertisement for bids as required for other municipal facilities, and (b) granting the lessee the option to renew the lease upon such conditions and rentals, or to purchase the facilities at such price, as may be agreed; provided that (c) any such lease shall require the lessee to pay net rentals sufficient to pay the principal, interest, redemption premiums, and other expenses when due with respect to all city bonds issued for the acquisition or betterment of the facilities, less such amount of taxes and special assessments, if any, as may become payable in any year of the term of the lease, on the land, building, or other facilities leased, and (d) no option shall be granted to purchase the facilities at any time at a price less than the amount required to pay all principal and interest to become due on such bonds to the earliest date or dates on which they may be paid and redeemed, and all redemption premiums and other expenses of such payment and redemption.

Sec. 11. Minnesota Statutes 1994, section 471.191, subdivision 2, is amended to read:

Subd. 2. Any such city may issue bonds pursuant to chapter 475, for the acquisition and betterment of land, buildings, and facilities for the purpose of carrying out the powers granted by this section. Such bonds, unless authorized as general obligations of the issuer pursuant to approval of the electors or pursuant to another law or charter provision permitting such issuance without an election, shall be payable solely from the income of land, buildings, and facilities used or useful for the operation of the program, but may be secured by a pledge to the

bondholders, or to a trustee, of all income and revenues of whatsoever nature derived from any such land, buildings, and facilities, as a first charge on the gross revenues thereof to the extent necessary to pay the bonds and interest thereon when due and to accumulate and maintain an additional reserve for that purpose in an amount equal to the total amount of payments to become due in any fiscal year. In this event the governing body of the issuer may by resolution or trust indenture define the land, buildings, or facilities, the revenues of which are pledged, and establish covenants and agreements to be made by the issuer for the security of the bonds, including a covenant that the issuer will establish, maintain, revise when necessary, and collect charges for all services, products, use, and occupancy of the land, buildings, and facilities, in the amounts and at the times required to produce the revenues pledged, and also sufficient, with any other funds appropriated by the governing body from time to time, to provide adequately for the operation and maintenance of the land, buildings, and facilities. After the issuance of any bonds for which revenues are so pledged, the governing body of the issuer shall provide in its budget each year for any anticipated deficiency in the revenues available for such operation and maintenance. For this purpose any issuer may levy a tax on the taxable property within its boundaries, in excess of taxes which may otherwise be levied within charter limitations, provided the excess levy for a city subject to a charter limitation is approved by a majority of its electors voting on the question at a regular or special election. The authority to levy additional taxes granted herein shall not apply to cities or towns in which the net tax capacity consists in part of iron ore or lands containing taconite or semitaconite.

Sec. 12. Minnesota Statutes 1994, section 471.98, subdivision 3, is amended to read:

Subd. 3. [POOL.] "Pool" means any self-insurance fund or agreement for the reciprocal assumption of risk established by or among two or more political subdivisions for coverage of their respective risks including, but not limited to, the pools described in section 471.982, subdivision 3.

Sec. 13. Minnesota Statutes 1994, section 471.981, subdivision 2, is amended to read:

Subd. 2. A political subdivision may establish a self insurance revolving fund. The initial amount of the fund shall be determined by the governing body. The governing body may appropriate the amounts necessary to maintain the fund at the level specified in the ordinance or resolution establishing it. Expenditures from the fund may be made for:

(a) Payment of losses;

(b) Costs of defense and investigation;

(c) Premiums and deductible amounts when commercial insurance is purchased for a risk;

(d) Debt service and debt service related expenses for bonds issued under this section;

(e) Cost of loss control activities; and

(e) (f) Any other costs customarily borne by commercial insurers under conventional insurance policies.

Sec. 14. Minnesota Statutes 1994, section 471.981, subdivision 4a, is amended to read:

Subd. 4a. [INSURANCE INSTALLMENT PURCHASE AGREEMENT.] A county political subdivision may, by resolution of its governing body, and without advertisement for bids, enter into an insurance installment purchase agreement with a self-insurance pool created under subdivision 3. Such a self-insurance pool may purchase insurance on behalf of the participating counties political subdivisions and may use insurance installment purchase agreements or other obligations of the participating counties political subdivisions to provide the participating counties political subdivisions with coverage against all or any part of the risks enumerated in subdivision 1 and against any risk which the county political subdivision is authorized to insure under section 176.181, subdivision 1. The Notwithstanding any limitations set forth under section 475.52, a political subdivision which has established a self-insurance revolving fund under subdivision 2 or self-insurance pool may fund insurance claims and reserves and finance insurance installment purchase agreements for the political subdivision, self-insurance pool, or a mutual insurance company established pursuant to subdivision 4 and fund other costs set forth in subdivision 2 by issuing revenue bonds, bonds which are general obligations of the self-insurance pool or mutual insurance company, as applicable, or other obligations secured by payments made or to be made by the participating counties political subdivisions or pool. An insurance installment purchase agreement of a participating county political subdivision may require that the county political subdivision make payments sufficient to produce revenue for the prompt payment of the bonds or other obligations, including all interest and premiums, if any, accruing on them. The insurance installment purchase agreements may provide for additional contributions or premiums if it is actuarially determined that the assets of the

insurance installment purchase agreements available to pay claims are insufficient. The insurance installment purchase agreements may be multiyear contracts and shall not be subject to any referendum, public bidding, or net debt limitation requirement of chapter 475.

Sec. 15. Minnesota Statutes 1994, section 471.981, subdivision 4b, is amended to read:

Subd. 4b. [BOND ISSUE FOR INSURANCE PROCUREMENT OR SELF-INSURANCE.] A self-insurance pool of counties may issue bonds which are general obligations of the self-insurance pool or revenue bonds secured by insurance installment purchase agreements of the participating counties political subdivisions issued pursuant to subdivision 4a. The self-insurance pool, with the approval of the governing body of each participating county political subdivision, shall fix the total amount needed for the procurement of insurance and shall apportion to each participating county political subdivision the county's political subdivision's share of that amount and of the costs of operation, or of annual debt service or payments required to pay such amount with interest. Notwithstanding any limitations set forth under section 475.52, or any other general or special law or charter to the contrary, a political subdivision may issue revenue bonds or other obligations to provide funds for the purposes, including self-insurance, authorized by this section. Any other law notwithstanding, bonds or other obligations issued under this subdivision may be sold at public or private sale upon the terms and conditions the issuer determines. No election shall be required to authorize the issuance of the obligations, and the obligations shall not be subject to any limitation on net debt. Notwithstanding any limitation imposed by section 475.54, the obligations shall mature in the years the issuer determines. In addition to permitted uses described above, proceeds of obligations issued pursuant to this subdivision may be used to establish a debt service reserve for the obligations, pay costs of issuing the bonds or to refund obligations previously issued pursuant to this subdivision. Any debt service reserve fund established under this subdivision shall not be subject to investment guidelines set forth in chapters 118 and 475. A self-insurance pool An issuer of bonds authorized under this subdivision may designate a bank or trust company authorized to exercise trust powers in this state as trustee for the holders of obligations issued pursuant to this subdivision and may create funds and accounts necessary to secure payment of the obligations. Sales proceeds of bonds issued under this subdivision, except for sales proceeds used to pay costs of issuing the bonds shall be invested so that the average life of the investments exceeds the average life of the bonds. The proceeds from bonds issued under this subdivision must be held in trust and may only be paid to the self-insurer according to the schedule of payments set forth in the trust instruments.

A qualified actuary shall certify that the amount of the scheduled payment does not exceed the amount necessary to meet the obligation of the self-insurer at the time payment is scheduled to be made.

Notwithstanding the investment limitations imposed in chapters 118 and 475, proceeds of bonds issued pursuant to this subdivision, and debt service funds and reserves held in connection with them shall be invested solely in governmental bonds, notes, bills, and other securities, which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by act of Congress, excluding mortgage-backed securities.

If required by the resolution authorizing the issuance of obligations pursuant to this subdivision, the governing body of each participating county political subdivision shall annually levy a tax sufficient to repay the costs of retirement of any bonds or to make payments under insurance installment purchase agreements. Taxes may be levied pursuant to this subdivision without limitation as to rate or amount.

Sec. 16. Minnesota Statutes 1994, section 471.981, subdivision 4c, is amended to read:

Subd. 4c. [INSURANCE INSTALLMENT PURCHASE; INTEREST RATE.] Participating counties political subdivisions may delegate to a self-insurance pool of counties political subdivisions the power to determine the interest rate on insurance installment purchase agreements provided that the rate is uniform and does not exceed the net effective rate on revenue bonds or other obligations sold by or on behalf of the pool by more than one-fourth of one percent.

Sec. 17. Minnesota Statutes 1994, section 475.51, subdivision 4, is amended to read:

Subd. 4. [NET DEBT.] "Net debt" means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following:

(1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments.

(2) Warrants or orders having no definite or fixed maturity.

(3) Obligations payable wholly from the income from revenue producing conveniences.

(4) Obligations issued to create or maintain a permanent improvement revolving fund.

(5) Obligations issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived.

(6) Debt service loans and capital loans made to a school district under the provisions of sections 124.42 and 124.431.

(7) Amount of all money and the face value of all securities held as a debt service fund for the extinguishment of obligations other than those deductible under this subdivision.

(8) Obligations to repay loans made under section 216C.37.

(9) Obligations to repay loans made from money received from litigation or settlement of alleged violations of federal petroleum pricing regulations.

(10) Obligations issued to pay pension fund liabilities under section 475.52, subdivision 6, or any charter authority.

(11) All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality.

Sec. 18. Minnesota Statutes 1994, section 475.52, subdivision 6, is amended to read:

Subd. 6. [CERTAIN PURPOSES.] Any municipality may issue bonds for paying judgments against it; for refunding outstanding bonds; for funding floating indebtedness; or for funding all or part of the municipality's current and future unfunded liability for a pension or retirement fund or plan referred to in section 356.20, subdivision 2, as those liabilities are most recently computed pursuant to sections 356.215 and 356.216 by purchasing one or more insurance policies or annuity contracts to pay all or a specified part of the liability within the period required by law. The board of trustees or directors of a pension fund or relief association referred to in section 69.77 or chapter 422A must consent and must be a party to any contract made under this section with respect to the fund held by it for the benefit of and in trust for its members.

Sec. 19. Minnesota Statutes 1994, section 475.58, subdivision 1, is amended to read:

Subdivision 1. [APPROVAL BY MAJORITY OF ELECTORS; EXCEPTIONS.] Obligations authorized by law or charter may be issued by any municipality upon obtaining the approval of a majority of the electors voting on the question of issuing the obligations, but an election shall not be required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable wholly or partly from the proceeds of special assessments levied upon property specially benefited by the improvement or by an improvement within the improvement program, or of taxes levied upon the increased value of property within a district for the development of which the improvement is undertaken, including obligations which are the general obligations of the municipality, if the municipality is entitled to reimbursement in whole or in part from the proceeds of such special assessments or taxes and not less than 20 percent of the cost of the improvement or the improvement program is to be assessed against benefited property or is to be paid from the proceeds of federal grant funds or a combination thereof, or is estimated to be received from such taxes within the district;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a municipality without an election;

(7) to fund pension or retirement fund liabilities pursuant to section 475.52, subdivision 6; and

(8) under a capital improvement plan under section 373.40; and

(9) to fund facilities as provided in subdivision 3.

Sec. 20. Minnesota Statutes 1994, section 475.58, is amended by adding a subdivision to read:

Subd. 3. [YOUTH ICE FACILITIES.] (a) A municipality may, without regard to the election requirement under subdivision 1 or under any other provision of law or a home rule charter, issue and sell obligations to finance acquisition, improvement, or construction of an indoor ice arena intended to be used predominantly for youth athletic activities if all the following conditions are met:

(1) the obligations are secured by a pledge of revenues from the facility;

(2) the facility and its financing are approved by resolutions of at least two of the following governing bodies of (i) the city in which the facility is located, (ii) the school district in which the facility is located, or (iii) the county in which the facility is located;

(3) the governing body of the municipality finds, based on analysis provided by a professional experienced in finance, that the facility's revenues and other available money will be sufficient to pay the obligations, without reliance on a property tax levy or the municipality's general purpose state aid; and

(4) no petition for an election has been timely filed under paragraph (b).

(b) At least 30 days before issuing obligations under this subdivision, the municipality must hold a public hearing on the issue. The municipality must publish or provide notice of the hearing in the same manner provided for its regular meetings. The obligations are not exempt from the election requirement under this subdivision, if:

(1) registered voters equal to ten percent of the votes cast in the last general election in the municipality sign a petition requesting a vote on the issue; and

(2) the petition is filed with the municipality within 20 days after the public hearing.

(c) This subdivision expires December 31, 1997.

Sec. 21. Minnesota Statutes 1994, section 475.58, is amended by adding a subdivision to read:

Subd. 4. [FIRST CLASS CITIES; WATER UTILITY BONDS.] A city that has a population in excess of 200,000 may issue general obligations pledging its full faith and credit without an election to acquire, construct, and improve its water utility if the city covenants that rates and charges will be imposed and collected at the times and in the amounts required to produce, together with any taxes or special assessments designated as a primary source of payment of the obligations, net revenues adequate to pay all principal and interest when due on the obligations and to create and maintain reserves securing the payments as may be provided in the resolutions.

Sec. 22. Minnesota Statutes 1994, section 475.60, is amended by adding a subdivision to read:

Subd. 8. [CONTINUING DISCLOSURE AGREEMENTS.] Any officer of a municipality charged with the responsibility of issuing bonds for or on behalf of the municipality is authorized to enter into written agreements or contracts relating to the continuing disclosure of information necessary to comply with, or facilitate the issuance of bonds in accordance with, federal securities laws, rules and regulations, including securities and exchange commission rules and regulations, section 240.15c2-12. An agreement may comprise covenants with purchasers and holders of bonds set forth in the resolution authorizing the issuance of the bonds, or a separate document authorized by resolution.

Sec. 23. Minnesota Statutes 1994, section 475.61, is amended by adding a subdivision to read:

Subd. 6. [OTHER TEMPORARY OBLIGATIONS.] When all conditions exist precedent to the offering for sale of obligations of any municipality in any amount for any purpose authorized by law, the governing body may issue and sell temporary obligations not exceeding the total amount authorized, maturing in not more than three years from

the date the obligations are issued, in anticipation of the issuance of the permanent obligations. To the extent that the principal of and interest on the temporary obligations cannot be paid when due from other sources pledged or appropriated for the purpose, they shall be paid from the proceeds of permanent bonds or additional temporary bonds which the governing body shall offer for sale in advance of their maturity but the indebtedness funded by an issue of temporary bonds shall not be extended by the issue of additional temporary bonds for more than six years from the date of the first issue. The holders of any temporary bonds shall have and may enforce, by mandamus or other appropriate proceedings, all rights respecting the levy and collection of taxes that are granted by law to holders of permanent bonds, except the right to require the levies to be collected prior to the maturity of the temporary bonds. If any temporary bonds are not paid in full at maturity, the holders may require the issuance in exchange for them, at par, of new temporary bonds maturing within one year from their date of issue but not subject to any other maturity limitation, and bearing interest at the maximum rate permitted by law. The governing body may by resolution adopted prior to the sale of any temporary bonds pledge the full faith, credit, and taxing power of the municipality for the payment of the principal and interest, in addition to all provisions made for their security in the authorizing resolution. If it does so, the bonds will be designated as general obligation temporary bonds, and the governing body shall levy taxes for their payment in accordance with this section. Proceeds of permanent bonds or temporary bonds not yet sold may be treated as pledged revenues, in reduction of the tax otherwise required by this section to be levied prior to delivery of the obligations. Funds of a municipality may be invested in its temporary bonds in accordance with section 471.56, and may be purchased upon their initial issue, but shall be purchased only from funds which the municipality determines will not be required for other purposes before the maturity date, and shall be resold before maturity only in the case of an emergency.

Sec. 24. Minnesota Statutes 1994, section 475.63, is amended to read:

475.63 [CERTIFICATE AS TO REGISTRATION.]

Before any obligations payable in whole or in part from taxes shall be delivered to the purchaser, the municipality shall obtain and deliver to the purchaser a certificate of the county auditor that the issue has been entered on the register. If a tax levy is required by law, such certificate shall also recite that such tax has been levied as required by law.

Sec. 25. Minnesota Statutes 1994, section 475.79, is amended to read:

475.79 [POWERS AVAILABLE TO OTHER POLITICAL SUBDIVISIONS.]

Any powers granted to a municipality under this chapter, other than the power to issue general obligation bonds and levy taxes, may be exercised by any other governmental unit. This grant of authority does not limit the powers granted to an entity under any other law. In connection with the issuance of bonds authorized to be issued by any law or charter provision other than this chapter, a governmental unit determining to exercise any power under any of sections 475.54, 475.55, 475.553, 475.56, 475.561, 475.60, 475.61, 475.65, 475.66, 475.67, 475.69, 475.70, and 475.78 may do so notwithstanding any contrary provision in the authorizing law or charter unless the authorizing law or charter provides that this chapter or the specific section does not apply. This section is, in part, remedial in nature. Obligations issued prior to the effective date of this section are not invalid or unenforceable for providing terms, consequences, or remedies that are authorized by this section and chapter 475.

Sec. 26. Laws 1971, chapter 773, section 4, as amended by Laws 1976, chapter 234, section 2, is amended to read:

Sec. 4. No proceeds of any bonds issued pursuant to section 1, hereof shall be expended for the construction or equipment of any portion of the St. Paul auditorium or civic center connected thereto; nor shall any such proceeds be expended for the acquisition or betterment of the building known as the Lowry Medical Arts Annex. All bonds issued under this act shall mature at any time or times within ten 30 years from the date of issue.

Sec. 27. [EFFECTIVE DATE.]

This act is effective the day following final enactment, provided that section 26 is effective only after its approval by a majority of the governing body of the city of St. Paul and upon compliance with the provisions of Minnesota Statutes, section 645.021."

Delete the title and insert:

"A bill for an act relating to public finance; providing conditions and requirements for the issuance of debt and use of the proceeds; authorizing use of capital improvement bonds for indoor ice arenas; exempting issuance of certain debt from election requirements; authorizing home rule charter cities to issue tax anticipation certificates; authorizing

operation of certain recreational facilities; authorizing continuing disclosure agreements; providing for funding of self-insurance by political subdivisions; providing for the issuance of temporary obligations and modifying issuance procedures; amending Minnesota Statutes 1994, sections 373.40, subdivision 1; 447.46; 469.041; 469.060, subdivision 1; 469.102, subdivision 1; 471.16, subdivision 1; 471.191, subdivisions 1 and 2; 471.98, subdivision 3; 471.981, subdivisions 2, 4a, 4b, and 4c; 475.51, subdivision 4; 475.52, subdivision 6; 475.58, subdivision 1, and by adding subdivisions; 475.60, by adding a subdivision; 475.61, by adding a subdivision; 475.63; and 475.79; Laws 1971, chapter 773, section 4, as amended; proposing coding for new law in Minnesota Statutes, chapters 373; and 410."

The motion prevailed and the amendment was adopted.

Rest moved to amend S. F. No. 1393, as amended, as follows:

Page 7, after line 7, insert:

"Sec. 9. Minnesota Statutes 1994, section 469.305, subdivision 1, is amended to read:

Subdivision 1. [INCOME OR FRANCHISE TAX CREDIT INCENTIVE GRANTS.] An income or corporate franchise tax credit incentive grant is available to businesses located in an enterprise zone that meet the conditions of this section. Each city designated as an enterprise zone is allocated $3,000,000 to be used to provide credits grants under this section for the duration of the program. Each city of the second class designated as an economically depressed area by the United States Department of Commerce is allocated $300,000 to be used to provide credits grants under this section for the duration of the program. For fiscal year 1998 and subsequent years, the proration in section 469.31 shall continue to apply until the amount designated in this subdivision is expended.

The credit incentive grant is in an amount equal to 20 percent of the wages paid to an employee, not to exceed $5,000 per employee per taxable calendar year. The credit incentive grant is available to an employer for a zone resident employed in the zone at full-time wage levels of not less than 170 percent of minimum wage. The credit incentive grant is not available to workers employed in construction or employees of financial institutions, gambling enterprises, public utilities, sports, fitness, and health facilities, or racetracks. The employee must be employed at that rate at the time the business applies for a tax credit grant, and must have been employed for at least one year at the business. The credit applies to A grant may be provided only for new jobs; for purposes of this section, a "new job" is a job that did not exist in Minnesota before May 6, 1994. The credit is applicable to The incentive grant authority is available for the five taxable calendar years after the application has been approved to the extent the allocation to the city remains available to fund the credit grants, and provided that if the city certifies to the commissioner on an annual basis that the business is in compliance with the plan to recruit, hire, train, and retain zone residents.

Sec. 10. Minnesota Statutes 1994, section 469.305, subdivision 3, is amended to read:

Subd. 3. [REVIEW AND ANALYSIS.] The city must submit the proposed tax credit incentive grant proposal to the commissioner for approval. The proposal shall include a plan to recruit, hire, train, and retain zone residents. The tax credit proposal shall be approved unless the commissioner finds that the proposal is not in conformity with the provisions of sections 469.301 to 469.308.

If the city submits the tax credit incentive grant proposal to the commissioner before the expiration of the zone designation under section 469.302, subdivision 2, the authority of the commissioner to approve the tax credit proposal continues until the commissioner acts on the proposal.

Sec. 11. Minnesota Statutes 1994, section 469.306, is amended to read:

469.306 [REVOCATION.]

The commissioner may revoke a business' tax credit incentive grant if the applicant has not proceeded in good faith with its operations in a manner which is consistent with the purpose of sections 469.301 to 469.308 and is possible under circumstances reasonably within the control of the applicant.

The commissioner may reconsider the revocation of the tax credit incentive grant if the business provides evidence that circumstances of its failure to proceed were beyond its control or that it did not act in bad faith.

Sec. 12. Minnesota Statutes 1994, section 469.307, is amended to read:

469.307 [RECAPTURE.]

Subdivision 1. [TERMINATION OF OPERATIONS; OTHER VIOLATIONS.] Any business that receives a tax credit authorized by an incentive grant under section 469.305 and ceases to operate or otherwise violates the criteria for obtaining the credit grant for its facility located within the enterprise zone within seven years after the first receipt of a credit grant by the business shall repay the portion of the tax credit grant received as provided in the following schedule:

Termination of OperationsRepayment of Portion

or Other Violations

Less than two years100 percent

Between two years and four years 75 percent

Between four years and seven years50 percent

More than seven years0 percent

Subd. 2. [REPAYMENT.] The repayment must be paid to the state. The amount repaid must be credited to the amount certified as available for tax credits incentive grants in the zone under section 469.305.

Subd. 3. [LIEN.] If an event occurs that creates an obligation under subdivision 1 to repay all or part of the tax credit incentive grant, the repayment obligation immediately becomes a lien against the business' real and personal property located in Minnesota, including the property of subsidiaries, parents, and related corporations. A lien against real property under this subdivision has the same legal effect and must be collected in the same manner as unpaid real property taxes.

Sec. 13. Minnesota Statutes 1994, section 469.309, is amended to read:

469.309 [RURAL JOB CREATION CREDIT GRANTS.]

Subdivision 1. [CREDIT FOR JOB CREATION GRANTS.] The commissioner of trade and economic development may approve a credit against the tax due under chapter 290 an incentive grant for an eligible business beginning with the first taxable year after December 31, 1994 calendar year 1995. The maximum credit available grant is $5,000 per eligible employee. The actual credit grant is based on the following schedule:

$2,000 for each eligible employee with wages greater than or equal to 170 percent and less than 200 percent of the minimum wage;

$3,000 for each eligible employee with wages greater than or equal to 200 percent and less than 250 percent of the minimum wage;

$4,000 for each eligible employee with wages greater than or equal to 250 percent and less than 300 percent of the minimum wage; and

$5,000 for each eligible employee with wages greater than or equal to 300 percent of the minimum wage.

The total credit grant for an employer is equal to the actual credit grant multiplied by the number of employees eligible for that credit grant. For purposes of this section "minimum wage" means the minimum wage that is required by federal law. An eligible business may apply for a rural job creation credit grant only once for each new job. The credit is refundable.

Subd. 2. [ELIGIBLE BUSINESS.] An employer eligible for a job credit creation incentive grant under this section must (1) be located outside the metropolitan area as defined under section 473.121 (2) create at least ten qualifying new jobs in a two-year period, and (3) consist of a for-profit business. For the purposes of this section, a "qualifying new job" is a job that did not exist in Minnesota before May 6, 1994.

Subd. 3. [ELIGIBLE EMPLOYEE.] To be eligible for a credit grant, the employee must be employed full time by an eligible business at a wage level of not less than 170 percent of the minimum wage at the time the eligible business applies for the credit grant and must have been employed there at that wage level for a minimum of 12 months. The credit grant applies only to new jobs created at the eligible business after May 6, 1994.

Subd. 4. [RESTRICTIONS.] The tax credits incentive grants provided by this section do not apply to racetracks, financial institutions, gambling enterprises, public utilities, or sports, fitness, and health facilities. An employer is not eligible for a tax credit an incentive grant if the commissioner determines that the position held by the employee for which the business is seeking a credit grant was transferred from an enterprise conducted by substantially the same business enterprise at another site in the state.

Sec. 14. Minnesota Statutes 1994, section 469.31, is amended to read:

469.31 [LIMIT ON TAX CREDITS GRANTS; APPROPRIATION.]

The maximum amount of tax credits allowable incentive grants payable under sections 469.305 and 469.309 is $900,000 for fiscal year 1997. Of that amount, one-third must be allocated to the city of Minneapolis, one-third to the city of St. Paul, and one-third to the remaining cities. Of the amounts allocated to the cities of Minneapolis and St. Paul, $25,000 must be subtracted from each city's allocation and is appropriated to the commissioner of economic security for administration of this program, provided that $25,000 of the appropriation is for fiscal year 1996 and $25,000 is for fiscal year 1997. Of the amount allocated to the remaining cities, a minimum of $60,000 must be allocated to the city of South St. Paul. No tax credits are allowable incentive grants may be paid before fiscal year 1997. If the commissioner of revenue economic security estimates by March 1, 1996, that tax credits incentive grants for fiscal year 1997 will exceed $900,000, the commissioner shall proportionately reduce each city's allocation to remain within the limit. The amount necessary to pay the allocations for grants under this section are appropriated to the commissioner of trade and economic development and the commissioner of economic security."

Page 20, after line 12, insert:

"Sec. 33. [REPEALER.]

Minnesota Statutes 1994, section 469.305, subdivision 2, is repealed."

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 S. F. No. 1393, as amended, as follows:

Page 17, delete section 21

Page 20, delete section 26

Page 20, line 14, delete the comma and insert a period

Page 20, delete lines 15 to 18

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Solberg moved to amend S. F. No. 1393, as amended, as follows:

Page 4, after line 11, insert:

"Section 6. Minnesota Statutes 1994, section 465.73, is amended to read:

465.73 [TOWN HALLS; FIRE HALLS OR RESCUE EQUIPMENT; LOANS TO POLITICAL SUBDIVISIONS.]

For purposes of constructing, repairing, or acquiring town halls, fire halls or fire or rescue equipment any city, county, or town may borrow up to $250,000 from funds granted to a rural electric cooperative organized under chapter 308A by, directly from or guaranteed by the Farmers Home Administration or other agency of the

United States Department of Agriculture on a note secured by a mortgage on the property purchased with the borrowed funds. The city, county, or town may assign or pledge revenues from the town halls, fire or rescue department, or fire hall or any other available funds, including taxes levied pursuant to section 475.61 to the Farmers Home Administration or other agency of the United States Department of Agriculture or its guaranteed lender or a rural electric cooperative organized under chapter 308A as its grantee to repay the loan. The amount of the obligation shall not be included when computing the net debt of the city, county, or town. An election shall not be required to authorize the note and mortgage or assignment of revenues."

Renumber the remaining sections and correct internal references

Amend the title as follows:

Page 1, line 7, after the semicolon, insert "modifying loans to political subdivisions for fire or rescue purposes;"

Page 1, line 14, after "447.46;" insert "465.73;"

The motion prevailed and the amendment was adopted.

Delmont; Swenson, D.; Weaver; Lynch; Warkentin; Simoneau; Johnson, A., and Rest moved to amend S. F. No. 1393, as amended, as follows:

Page 20, after line 12, insert:

"Sec. 27. [HACA ADJUSTMENT; ANOKA COUNTY.]

Subdivision 1. [HACA ADJUSTMENT.] The homestead and agricultural credit aid offset for the 1996 public defender costs for Anoka county shall be changed from the $634,000 amount as contained in Minnesota Statutes 1994, section 477A.012, subdivision 7, paragraph (b), to a corrected amount of $472,000. The $162,000 adjustment results from an incorrect estimate of Anoka county's public defender costs which were transferred to the state under Laws 1994, chapter 636, article 11, section 1. The adjustment amount of $162,000 provided for under this section is a permanent aid increase to Anoka county made under Minnesota Statutes, section 273.1398, subdivision 2.

Subd. 2. [EFFECTIVE DATE.] Subdivision 1 is effective for homestead and agricultural credit aid paid to Anoka county beginning in calendar year 1996 and subsequent years."

Page 20, line 13, delete "27" and insert "28"

Further amend the title as follows:

Page 1, line 13, after "procedures;" insert "adjusting certain aid payments for Anoka county;"

The motion prevailed and the amendment was adopted.

Olson, E., moved to amend S. F. No. 1393, as amended, as follows:

Page 20, after line 12, insert:

"Sec. 27. Laws 1994, chapter 643, section 14, subdivision 6, is amended to read:

Subd. 6. Community Service Centers 1,200,000

For a grant to independent school district No. 432, Mahnomen, to construct a community service center at Nay-Tay-Waush in Mahnomen county on the White Earth Indian reservation. The center must be constructed on land leased to the school district by the White Earth Band of Chippewa Indians under a ground lease

having an initial term of at least 20 years and a total term of at least 40 years, including renewal options. The school district must contract with the White Earth Band to operate the center on behalf of the school district for the term of the lease and any renewal options, and otherwise subject to new Minnesota Statutes, section 16A.695. The center and all the services provided by the center must be open to the public. This grant is contingent on a match of $1,300,000 from the White Earth Band of Chippewa Indians."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

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

Those who voted in the affirmative were:

Anderson, R. Girard       Kinkel       Ness         Sarna
Bertram      Goodno       Larsen       Olson, E.    Schumacher
Brown        Greenfield   Leighton     Opatz        Simoneau
Carlson      Greiling     Lieder       Orenstein    Skoglund
Carruthers   Hasskamp     Long         Orfield      Smith
Clark        Hausman      Lourey       Osthoff      Solberg
Cooper       Huntley      Luther       Ostrom       Tomassoni
Daggett      Jaros        Mahon        Otremba      Trimble
Dauner       Jefferson    Mariani      Ozment       Tunheim
Dawkins      Jennings     Marko        Perlt        Wagenius
Delmont      Johnson, A.  McCollum     Peterson     Wejcman
Dorn         Johnson, R.  McElroy      Pugh         Wenzel
Entenza      Kahn         McGuire      Rest         Winter
Farrell      Kalis        Milbert      Rhodes       Sp.Anderson,I
Finseth      Kelley       Munger       Rice         
Garcia       Kelso        Murphy       Rukavina     

Abrams       Erhardt      Krinkie      Paulsen      Tompkins
Anderson, B. Haas         Leppik       Pawlenty     Tuma
Bettermann   Hackbarth    Lindner      Pellow       Van Dellen
Bishop       Harder       Lynch        Pelowski     Van Engen
Boudreau     Holsten      Macklin      Rostberg     Vickerman
Bradley      Hugoson      Mares        Seagren      Warkentin
Broecker     Johnson, V.  Molnau       Stanek       Weaver
Commers      Knight       Mulder       Sviggum      Wolf
Davids       Knoblach     Olson, M.    Swenson, D.  Worke
Dehler       Koppendrayer Onnen        Swenson, H.  Workman 
Dempsey      Kraus        Osskopp      Sykora       

S. F. No. 1393, A bill for an act relating to public finance; providing conditions and requirements for the issuance of debt and use of the proceeds; authorizing use of capital improvement bonds for indoor ice arenas; exempting issuance of certain debt from election requirements; authorizing home rule charter cities to issue tax anticipation certificates; authorizing operation of certain recreational facilities; providing for the computation of tax increment from certain hazardous substance subdistricts; authorizing continuing disclosure agreements; providing for funding of self-insurance by political subdivisions; providing for the issuance of temporary obligations and modifying issuance procedures; amending Minnesota Statutes 1994, sections 373.40, subdivision 1; 447.46; 462C.05, subdivision 1; 469.041; 469.174, subdivision 4, and by adding subdivisions; 469.175, subdivision 1; 469.177, subdivisions 1, 1a, and 2; 471.16, subdivision 1; 471.191, subdivisions 1 and 2; 471.98, subdivision 3; 471.981, subdivisions 2, 4a, 4b, and 4c; 475.51, subdivision 4; 475.52, subdivision 6; 475.58, subdivision 1, and by adding a subdivision; 475.60, by adding a subdivision; 475.61, by adding a subdivision; 475.63; and 475.79; Laws 1971, chapter 773, section 4, as amended; proposing coding for new law in Minnesota Statutes, chapters 373; and 410.

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. There were 88 yeas and 45 nays as follows:

Those who voted in the affirmative were:

Abrams       Girard       Leighton     Ness         Solberg
Anderson, R. Goodno       Leppik       Olson, E.    Stanek
Bakk         Greenfield   Lieder       Opatz        Swenson, D.
Bertram      Haas         Long         Orenstein    Tomassoni
Bishop       Hasskamp     Lourey       Orfield      Trimble
Brown        Hausman      Luther       Osthoff      Tunheim
Carlson      Holsten      Lynch        Otremba      Van Dellen
Carruthers   Huntley      Mahon        Perlt        Wagenius
Clark        Jaros        Mares        Peterson     Warkentin
Dauner       Jefferson    Mariani      Pugh         Weaver
Davids       Johnson, A.  Marko        Rest         Wejcman
Dawkins      Johnson, R.  McCollum     Rhodes       Wenzel
Delmont      Johnson, V.  McElroy      Rice         Winter
Entenza      Kahn         McGuire      Rostberg     Wolf
Erhardt      Kelley       Milbert      Rukavina     Workman
Farrell      Kelso        Mulder       Sarna        Sp.Anderson,I
Finseth      Kinkel       Munger       Simoneau     
Garcia       Larsen       Murphy       Skoglund     

Anderson, B. Dempsey      Knoblach     Osskopp      Smith
Bettermann   Dorn         Koppendrayer Ostrom       Sviggum
Boudreau     Greiling     Kraus        Ozment       Swenson, H.
Bradley      Hackbarth    Krinkie      Paulsen      Sykora
Broecker     Harder       Lindner      Pawlenty     Tompkins
Commers      Hugoson      Macklin      Pellow       Tuma
Cooper       Jennings     Molnau       Pelowski     Van Engen
Daggett      Kalis        Olson, M.    Schumacher   Vickerman
Dehler       Knight       Onnen        Seagren      Worke 

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

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

Kraus moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, May 12, 1995, when the vote was taken on the repassage of H. F. No. 1238, as amended by the Senate." The motion prevailed.

Workman moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, May 12, 1995, when the vote was taken on the repassage of H. F. No. 1377, as amended by the Senate." The motion prevailed.

Olson, M., moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, May 12, 1995, when the vote was taken on the repassage of H. F. No. 1742, as amended by the Senate." The motion prevailed.

Bakk moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, May 12, 1995, when the vote was taken on the final passage of S. F. No. 342." The motion prevailed.

Pellow moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Friday, May 12, 1995, when the vote was taken on the final passage of S. F. No. 910, as amended." The motion prevailed.

Koppendrayer moved that H. F. No. 1051 be returned to its author. The motion prevailed.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 787:

Munger, Tunheim, McCollum, Sviggum and Girard.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 1478:

Otremba, Jennings, Greiling, Farrell and Knoblach.

Carruthers moved that when the House adjourns today it adjourn until 9:30 a.m., Tuesday, May 16, 1995. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 9:30 a.m., Tuesday, May 16, 1995.

Edward A. Burdick, Chief Clerk, House of Representatives

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