EIGHTY-FIRST SESSION 2000
__________________
ONE HUNDRED SEVENTEENTH DAY
Saint Paul, Minnesota, Tuesday, May 9, 2000
This Journal as a PDF document
The House of Representatives convened at 11:00 a.m. and was called to order by Steve Sviggum, Speaker of the House.
Prayer was offered by Pastor Tim Rehwaldt, Praise Lutheran Church, Eagan, Minnesota.
The members of the House gave the pledge of allegiance to the flag of the United States of America.
The roll was called and the following members were present:
Abeler | Dorman | Holberg | Lieder | Ozment | Storm | |
Abrams | Dorn | Holsten | Lindner | Paulsen | Swapinski | |
Anderson, B. | Entenza | Howes | Luther | Pawlenty | Swenson | |
Anderson, I. | Erhardt | Huntley | Mahoney | Paymar | Sykora | |
Bakk | Erickson | Jaros | Mares | Pelowski | Tingelstad | |
Biernat | Finseth | Jennings | Mariani | Peterson | Tomassoni | |
Bishop | Folliard | Johnson | Marko | Pugh | Trimble | |
Boudreau | Fuller | Juhnke | McCollum | Rest | Tuma | |
Bradley | Gerlach | Kahn | McElroy | Reuter | Tunheim | |
Broecker | Gleason | Kalis | McGuire | Rhodes | Van Dellen | |
Buesgens | Goodno | Kelliher | Milbert | Rifenberg | Vandeveer | |
Carlson | Gray | Kielkucki | Molnau | Rostberg | Wagenius | |
Carruthers | Greenfield | Knoblach | Mulder | Rukavina | Wejcman | |
Cassell | Greiling | Koskinen | Mullery | Schumacher | Wenzel | |
Chaudhary | Gunther | Krinkie | Murphy | Seifert, J. | Westerberg | |
Clark, J. | Haake | Kubly | Ness | Seifert, M. | Westfall | |
Clark, K. | Haas | Kuisle | Nornes | Skoe | Westrom | |
Daggett | Hackbarth | Larsen, P. | Olson | Skoglund | Wilkin | |
Davids | Harder | Larson, D. | Opatz | Smith | Winter | |
Dawkins | Hasskamp | Leighton | Osskopp | Solberg | Workman | |
Dehler | Hausman | Lenczewski | Osthoff | Stanek | Spk. Sviggum | |
Dempsey | Hilty | Leppik | Otremba | Stang | ||
A quorum was present.
Orfield and Wolf were excused.
Seagren was excused until 12:10 p.m.
The Chief Clerk proceeded to read the Journal of the preceding day. Kubly moved that further reading of the Journal be suspended and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.
REPORTS OF CHIEF CLERK
S. F. No. 3100 and H. F. No. 3349, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.
Skoe moved that the rules be so far suspended that S. F. No. 3100 be substituted for H. F. No. 3349 and that the House File be indefinitely postponed. The motion prevailed.
The following communications were received:
OFFICE OF THE GOVERNOR
SAINT PAUL 55155
The Honorable Steve Sviggum
Speaker of the House of Representatives
The State of Minnesota
Dear Speaker Sviggum:
It is my honor to inform you that I have received, approved, signed and deposited in the Office of the Secretary of State the following House File:
H. F. No. 2833, relating to crime; authorizing certain behavioral data on students to be disclosed to the juvenile justice system; providing that when a juvenile has been adjudicated delinquent for certain violations of criminal law that the disposition order shall be shared with certain school officials, law enforcement, and specified others; providing for data sharing between probation officers and school officials for juveniles on probation.
Sincerely,
Jesse Ventura
Governor
STATE OF MINNESOTA
OFFICE OF THE SECRETARY OF STATE
ST. PAUL 55155
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 Acts of the 2000 Session of the State Legislature have been received from the Office of the Governor and are 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 Approved Date Filed
No. No. Chapter No. 2000 2000
2833 451 10:47 a.m. May 5 May 5
3300 452 10:47 a.m. May 5 May 5
3386 453 10:46 a.m. May 5 May 5
2570 454 10:49 a.m. May 5 May 5
2521 455 10:50 a.m. May 5 May 5
1870 456 10:50 a.m. May 5 May 5
3257 457 10:51 a.m. May 5 May 5
Sincerely,
Mary Kiffmeyer
Secretary of State
Pawlenty from the Committee on Rules and Legislative Administration to which was referred:
S. F. No. 2693, A bill for an act relating to taxation; making technical and administrative changes and corrections to certain tax and revenue recapture provisions; authorizing the attorney general to compromise certain fees, surcharges, and assessments; amending Minnesota Statutes 1998, sections 8.30; 270.072, subdivision 2, and by adding a subdivision; 270A.07, subdivision 1; 273.111, subdivision 3; 289A.20, subdivision 2; 289A.26, subdivision 1; 289A.60, subdivision 14; 290.01, subdivision 19c; 290.015, subdivisions 1, 3, and 4; 290.06, subdivision 22; 290.92, subdivisions 3, 28, and 29; 295.58; 296A.03, subdivision 5; 296A.21, subdivisions 2 and 3; 296A.22, subdivision 6; 297A.25, subdivision 34; 297B.03; 297F.01, subdivisions 7, 14, and by adding subdivisions; and 297F.13, subdivision 4; Minnesota Statutes 1999 Supplement, sections 270A.07, subdivision 2; 273.13, subdivision 24; 287.01, subdivision 2; 289A.20, subdivision 4; 289A.55, subdivision 9; 298.24, subdivision 1; and
477A.03, subdivision 2; Laws 1988, chapter 645, section 3, as amended; Laws 1999, chapters 112, section 1, subdivision 1; 243, articles 1, section 2; 6, section 18; repealing Minnesota Statutes 1998, sections 270.072, subdivision 5; 270.075, subdivisions 3 and 4; 270.083; 273.127; and 273.1316.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 1998, section 297F.01, subdivision 7, is amended to read:
Subd. 7. [CONSUMER.] "Consumer" means any person an individual who has title to or
possession of cigarettes or tobacco products in storage, for use or other personal
consumption in this state rather than for sale.
Sec. 2. Minnesota Statutes 1998, section 297F.01, is amended by adding a subdivision to read:
Subd. 9a. [INVOICE.] "Invoice" means a detailed list of cigarettes and tobacco products purchased or sold in this state that contains the following information:
(1) name of seller;
(2) name of purchaser;
(3) date of sale;
(4) invoice number;
(5) itemized list of goods sold including brands of cigarettes and number of cartons of each brand, unit price, and identification of tobacco products by name, quantity, and unit price; and
(6) any rebates, discounts, or other reductions.
Sec. 3. Minnesota Statutes 1998, section 297F.01, subdivision 14, is amended to read:
Subd. 14. [RETAILER.] "Retailer" means a person required to be licensed under chapter 461 engaged in this state in the business of selling, or offering to sell, cigarettes or tobacco products to consumers.
Sec. 4. Minnesota Statutes 1998, section 297F.01, subdivision 17, is amended to read:
Subd. 17. [STAMP.] "Stamp" means the adhesive stamp supplied by the commissioner of revenue for use on cigarette packages or any other indicia adopted by the commissioner to indicate that the tax has been paid.
Sec. 5. Minnesota Statutes 1998, section 297F.01, is amended by adding a subdivision to read:
Subd. 21a. [UNLICENSED SELLER.] "Unlicensed seller" means anyone who is not licensed under section 297F.03 or 461.12 to sell the particular product to the purchaser or possessor of the product.
Sec. 6. Minnesota Statutes 1998, section 297F.08, subdivision 2, is amended to read:
Subd. 2. [TAX DUE; CIGARETTES.] Notwithstanding any other provisions of this chapter, the tax due on the
return is based upon actual heat-applied stamps purchased during the reporting period.
Sec. 7. Minnesota Statutes 1998, section 297F.08, subdivision 5, is amended to read:
Subd. 5. [DEPOSIT OF PROCEEDS.] The commissioner shall use the amounts appropriated by law to purchase
heat-applied stamps for resale. The commissioner shall charge the purchasers for the costs of the stamps
along with the tax value plus shipping costs. The costs recovered along with shipping costs must be deposited into
the general fund.
Sec. 8. Minnesota Statutes 1998, section 297F.08, subdivision 8, is amended to read:
Subd. 8. [SALE OF STAMPS.] The commissioner may sell heat-applied stamps on a credit basis under
conditions prescribed by the commissioner. The commissioner shall sell the stamps at a price which includes the
tax after giving effect to the discount provided in subdivision 7. The commissioner shall recover the actual costs of
the stamps from the distributor. The commissioner shall annually establish the maximum amount of
heat-applied stamps that may be purchased each month.
Sec. 9. Minnesota Statutes 1999 Supplement, section 297F.08, subdivision 8a, is amended to read:
Subd. 8a. [REVOLVING ACCOUNT.] A heat-applied cigarette tax stamp revolving account is created.
The commissioner shall use the amounts in this fund to purchase heat-applied stamps for resale. The
commissioner shall charge distributors for the tax value of the stamps they receive along with the commissioner's
cost to purchase the stamps and ship them to the distributor. The stamp purchase and shipping costs recovered must
be credited to the revolving account and are appropriated to the commissioner for the further purchases and shipping
costs. The revolving account is initially funded by a $40,000 transfer from the department of revenue.
Sec. 10. Minnesota Statutes 1998, section 297F.08, subdivision 9, is amended to read:
Subd. 9. [TAX STAMPING MACHINES.] The commissioner shall require any person licensed as a distributor
to stamp packages with a heat-applied tax stamping machine, approved by the commissioner, which shall
be provided by the distributor. The commissioner shall also supervise and check the operation of the machines and
shall provide for the payment of the tax on any package so stamped, subject to the discount provided in subdivision 7.
If the commissioner finds that a stamping machine is not affixing a legible stamp on the package, the commissioner
may order the distributor to immediately cease the stamping process until the machine is functioning properly.
Sec. 11. Minnesota Statutes 1998, section 297F.13, subdivision 4, is amended to read:
Subd. 4. [RETAILER AND SUBJOBBER TO PRESERVE PURCHASE INVOICES.] Every retailer and
subjobber shall procure itemized invoices of all cigarettes or tobacco products purchased. The invoices shall show
the name and address of the seller and the date of purchase.
The retailer and subjobber shall preserve a legible copy of each invoice for one year from the date of
purchase the invoice. The retailer and subjobber shall preserve copies of the invoices at each retail
location or at a central location provided that the invoice must be produced and made available at a retail location
within one hour when requested by the commissioner or duly authorized agents and employees. Copies should
be numbered and kept in chronological order.
To determine whether the business is in compliance with the provisions of this chapter and sections 325D.30 to 325D.42, at any time during usual business hours, the commissioner, or duly authorized agents and employees, may enter any place of business of a retailer or subjobber without a search warrant and inspect the premises, the records required to be kept under this chapter, and the packages of cigarettes, tobacco products, and vending devices contained on the premises.
Sec. 12. Minnesota Statutes 1998, section 297F.21, subdivision 1, is amended to read:
Subdivision 1. [CONTRABAND DEFINED.] The following are declared to be contraband and therefore subject to civil and criminal penalties under this chapter:
(a) Cigarette packages which do not have stamps affixed to them as provided in this chapter, including but not limited to (i) packages with illegible stamps and packages with stamps that are not complete or whole even if the stamps are legible, and (ii) all devices for the vending of cigarettes in which packages as defined in item (i) are found, including all contents contained within the devices.
(b) A device for the vending of cigarettes and all packages of cigarettes, where the device does not afford at least partial visibility of contents. Where any package exposed to view does not carry the stamp required by this chapter, it shall be presumed that all packages contained in the device are unstamped and contraband.
(c) A device for the vending of cigarettes to which the commissioner or authorized agents have been denied access for the inspection of contents. In lieu of seizure, the commissioner or an agent may seal the device to prevent its use until inspection of contents is permitted.
(d) A device for the vending of cigarettes which does not carry the name and address of the owner, plainly marked and visible from the front of the machine.
(e) A device including, but not limited to, motor vehicles, trailers, snowmobiles, airplanes, and boats used with the knowledge of the owner or of a person operating with the consent of the owner for the storage or transportation of more than 5,000 cigarettes which are contraband under this subdivision. When cigarettes are being transported in the course of interstate commerce, or are in movement from either a public warehouse to a distributor upon orders from a manufacturer or distributor, or from one distributor to another, the cigarettes are not contraband, notwithstanding the provisions of clause (a).
(f) Cigarette packages or tobacco products obtained from an unlicensed seller.
(g) Cigarette packages offered for sale or held as inventory in violation of section 297F.20, subdivision 7.
(h) Tobacco products on which the tax has not been paid by a licensed distributor.
(i) Any cigarette packages or tobacco products offered for sale or held as inventory for which there is not an invoice from a licensed seller as required under section 297F.13, subdivision 4.
(j) Cigarette packages which have been imported into the United States in violation of United States Code, title 26, section 5754. All cigarettes held in violation of that section shall be presumed to have entered the United States after December 31, 1999, in the absence of proof to the contrary.
Sec. 13. Minnesota Statutes 1998, section 297F.21, subdivision 3, is amended to read:
Subd. 3. [INVENTORY; JUDICIAL DETERMINATION; APPEAL; DISPOSITION OF SEIZED PROPERTY.] (a) Within ten days after the seizure of any alleged contraband, the person making the seizure shall make available an inventory of the property seized to the person from whom the seizure was made, if known, and file a copy with the commissioner. Within ten days after the date of service of the inventory, the person from whom the property was seized or any person claiming an interest in the property may file with the commissioner a demand for a judicial determination of the question as to whether the property was lawfully subject to seizure and forfeiture. The commissioner, within 60 days, shall institute an action in the district court of the county where the seizure was made to determine the issue of forfeiture. The court shall decide whether the alleged contraband is contraband, as defined in subdivision 1.
(b) The action must be brought in the name of the state and must be prosecuted by the county attorney or by the attorney general. The court shall hear the action without a jury and shall try and determine the issues of fact and law involved.
(c) When a judgment of forfeiture is entered, the commissioner may, unless the judgment is stayed pending an appeal, either:
(1) deliver the forfeited property to the commissioner of human services for use by patients in state institutions;
(2) cause it to be destroyed; or
(3) cause it to be sold at public auction as provided by law.
(d) If a demand for judicial determination is made and no action commenced as provided in this subdivision, the
property must be released by the commissioner and returned to the person entitled to it. If no demand is made, the
property seized is considered forfeited to the state by operation of law and may be disposed of by the commissioner
as provided in the case of a judgment of forfeiture. When the commissioner is satisfied that a person from whom
property is seized was acting in good faith and without intent to evade the tax imposed by this chapter, the
commissioner shall release the property seized without further legal proceedings.
Sec. 14. [325D.091] [UNLAWFUL CIGARETTE TRADE PRACTICES.]
Subdivision 1. [PROHIBITIONS.] (a) It is unlawful for any person to sell or distribute in this state; to acquire, hold, own, possess, or transport, for sale or distribution in this state; or to import, or cause to be imported, into this state for sale or distribution in this state, any cigarettes:
(1) the package of which:
(i) bears any statement, label, stamp, sticker, or notice indicating that the manufacturer did not intend the cigarettes to be sold, distributed, or used in the United States, including, but not limited to, labels stating "For Export Only," "U.S. Tax-Exempt," "For Use Outside U.S.," or similar wording; or
(ii) does not comply with all requirements imposed by or pursuant to federal law regarding warnings and other information on packages of cigarettes manufactured, packaged, or imported for sale, distribution, or use in the United States, including, but not limited to, the precise warning labels specified in the federal Cigarette Labeling and Advertising Act, United States Code, title 15, section 1333;
(2) imported into the United States in violation of United States Code, title 26, section 5754, or any other federal law or regulation; or
(3) for which there has not been submitted to the secretary of the United States Department of Health and Human Services the list or lists of the ingredients added to tobacco in the manufacture of the cigarettes required by the federal Cigarette Labeling and Advertising Act, United States Code, title 15, section 1335a.
(b) It is unlawful for any person to alter the package of any cigarettes, prior to sale or distribution to the ultimate consumer, so as to remove, conceal, or obscure:
(1) any statement, label, stamp, sticker, or notice described in paragraph (a), clause (1), item (i); or
(2) any health warning that is not specified in, or does not conform with the requirements of the federal Cigarette Labeling and Advertising Act, United States Code, title 15, section 1333.
(c) If cigarettes are sold or distributed under any trade name, trade dress, or trademark that is the same as, or is confusingly similar to, any trade name, trade dress, or trademark used for other cigarettes previously sold or distributed, it is unlawful for a wholesaler, as defined in section 325D.32, subdivision 4, or a retailer, as defined in section 325D.32, subdivision 5, to sell the cigarettes at a price lower than the minimum price presently permitted under sections 325D.30 to 325D.42 for the cigarettes which were previously sold or distributed in this state. For purposes of this subdivision, "previously sold or distributed" means cigarettes using a trade name, trade dress, or trademark that were sold or distributed in this state before January 1, 1998. No provision of sections 325D.30 to 325D.42 authorizes or permits sales of cigarettes, subject to this paragraph, at prices lower than the minimum prices under this paragraph. The commissioner of revenue is not responsible for enforcing this paragraph. None of the enforcement mechanisms or remedies under sections 325D.30 to 325D.42 apply to violations of this paragraph.
Subd. 2. [PRIVATE CAUSE OF ACTION.] (a) In addition to any other private remedy provided by law, any person that sustains economic damages or commercial injury as a result of any violation of subdivision 1 may bring an action for appropriate injunctive or other equitable relief, actual damages, if any, sustained by reason of the violation, and, as determined by the court, interest on the damages from the date of the complaint, taxable costs, and reasonable attorney fees.
(b) If the trier of fact finds that the violation is egregious, it may increase the recovery to an amount not in excess of three times the actual damages sustained by reason of the violation. The trier of fact may, in addition, award exemplary damages for violations of subdivision 1, paragraph (c), equal to the difference between the permitted legal price and the actual price for the sales.
Subd. 3. [APPLICABILITY.] This section does not apply to cigarettes imported or reimported into the United States for personal use and cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of United States Code, title 19, section 1555(b), and any implementing regulations; unless the cigarettes are brought back into the customs territory for resale within the customs territory.
Subd. 4. [VIOLATION.] A violation of this section is a misdemeanor.
Sec. 15. [EFFECTIVE DATE.]
Sections 2, 11, and 14 are effective July 1, 2000. The rest of this act is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to taxation and regulation of cigarettes and tobacco; making technical and administrative changes in the tobacco tax; defining terms; authorizing the use of heat applied stamps; defining contraband; prohibiting sales of certain cigarettes; providing a private cause of action for violations; amending Minnesota Statutes 1998, sections 297F.01, subdivisions 7, 14, 17, and by adding subdivisions; 297F.08, subdivisions 2, 5, 8, and 9; 297F.13, subdivision 4; 297F.21, subdivisions 1 and 3; Minnesota Statutes 1999 Supplement, section 297F.08, subdivision 8a; proposing coding for new law in Minnesota Statutes, chapter 325D."
With the recommendation that when so amended the bill pass.
The report was adopted.
Pawlenty from the Committee on Rules and Legislative Administration to which was referred:
H. F. No. 4147, A bill for an act proposing an amendment to the Minnesota Constitution; providing for a unicameral legislature; changing article IV; article V, sections 3 and 5; article VIII, sections 1 and 6; article IX, sections 1 and 2; and article XI, section 5; amending Minnesota Statutes 1998, sections 2.021; and 2.031, subdivision 1.
Reported the same back with the following amendments:
Page 3, line 1, strike everything after "effect"
Page 3, lines 2 and 3, strike the old language and delete the new language and insert "until the beginning of the next biennial session of the legislature."
Page 3, line 8, before "they" insert "in the legislature"
Page 10, line 4, before the question mark, insert ", and that the four-year term of members of the legislature be overlapped so that some of the members stand for election every two years"
Amend the title as follows:
Page 1, line 3, after "legislature" insert "with overlapped terms"
With the recommendation that when so amended the bill pass.
MINORITY REPORT
May 9, 2000
We, the undersigned, being a minority of the Committee on Rules and Legislative Administration, recommend that H. F. No. 4147 be re-referred to the Committee on Ways and Means, without recommendation.
Signed:
John Tuma
Loren Solberg
On the motion of Bishop and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:
Abrams moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.
Tuma and Solberg moved that the Minority Report on H. F. No. 4147 be substituted for the Majority Report and that the Minority Report be now adopted.
A roll call was requested and properly seconded.
The Speaker called Abrams to the Chair.
The question recurred on the Tuma and Solberg motion and the roll was called.
Pawlenty moved that those not voting be excused from voting. The motion prevailed.
There were 76 yeas and 54 nays as follows:
Those who voted in the affirmative were:
Anderson, B. | Dorn | Holberg | Leppik | Otremba | Swapinski | |
Anderson, I. | Entenza | Huntley | Lieder | Paymar | Swenson | |
Bakk | Erhardt | Jennings | Mahoney | Pelowski | Tomassoni | |
Biernat | Finseth | Johnson | Mariani | Peterson | Trimble | |
Bishop | Folliard | Juhnke | McCollum | Pugh | Tuma | |
Boudreau | Fuller | Kahn | McGuire | Reuter | Tunheim | |
Bradley | Gleason | Kalis | Molnau | Rifenberg | Wagenius | |
Broecker | Gray | Kelliher | Mullery | Rukavina | Wejcman | |
Carlson | Greenfield | Koskinen | Murphy | Seagren | Wilkin | |
Clark, K. | Gunther | Krinkie | Ness | Skoe | Winter | |
Davids | Haas | Kubly | Nornes | Skoglund | Workman | |
Dawkins | Hasskamp | Kuisle | Olson | Smith | ||
Dorman | Hilty | Leighton | Osthoff | Solberg | ||
Those who voted in the negative were:
The motion prevailed and the Minority Report on H. F. No. 4147 was substituted for the Majority Report and the Minority Report was adopted. H. F. No. 4147 was re-referred to the Committee on Ways and Means, without recommendation.
The Speaker resumed the Chair.
S. F. Nos. 3100 and 2693 were read for the second time.
The following House Files were introduced:
Buesgens, Gerlach, Wilkin, Krinkie and Holberg introduced:
H. F. No. 4175, A bill for an act relating to the legislature; confining regular legislative sessions to odd-numbered years; amending Minnesota Statutes 1998, section 3.011.
The bill was read for the first time and referred to the Committee on Governmental Operations and Veterans Affairs Policy.
Broecker introduced:
H. F. No. 4176, A resolution memorializing the Congress of the United States to remove restrictions on medical savings accounts.
The bill was read for the first time and referred to the Committee on Health and Human Services Policy.
Paulsen introduced:
H. F. No. 4177, A bill for an act relating to taxation; providing retailers a deduction from the amount of sales tax remitted to compensate for costs of collecting the tax; amending Minnesota Statutes 1998, section 289A.31, subdivision 7.
The bill was read for the first time and referred to the Committee on Taxes.
Bishop moved that the call of the House be suspended. The motion prevailed and it was so ordered.
MESSAGES FROM THE SENATE
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:
H. F. No. 3839, A bill for an act relating to health; modifying provisions for speech-language pathologists, audiologists, unlicensed mental health practitioners, alcohol and drug counselors, and hearing instrument dispensers; requiring a study; extending a board; amending Minnesota Statutes 1998, sections 148.512, subdivision 5; 148.515, subdivision 3; 148.517, by adding a subdivision; 148.518, subdivision 2; 148.5193, subdivisions 1, 2, 4, 6, and by adding a subdivision; 148.5196, subdivision 3; 148B.60, subdivision 3; 148B.68, subdivision 1; 148B.69, by adding a subdivision; 148B.71, subdivision 1; 148C.01, subdivisions 2, 7, 9, 10, and by adding a subdivision; 148C.03, subdivision 1; 148C.04, by adding subdivisions; 148C.06, subdivisions 1 and 2; 148C.09, subdivisions 1 and 1a; 148C.10, by adding a subdivision; 148C.11, subdivision 1; 153A.13, subdivision 9, and by adding subdivisions; 153A.14, subdivisions 1, 2a, 2h, 4, 4a, and by adding subdivisions; and 153A.15, subdivision 1; Laws 99, chapter 223, article 2, section 81, as amended; repealing Minnesota Statutes 1998, sections 148.5193, subdivisions 3 and 5; and 148C.04, subdivision 5.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has reconsidered the vote whereby S. F. No. 2845 was repassed and has also reconsidered the vote whereby the recommendations and the Conference Committee report were adopted on April 27, 2000.
S. F. No. 2845, A bill for an act relating to crimes; increasing criminal penalties and driver license sanctions for underage persons who use any type of false identification to purchase or attempt to purchase alcoholic beverages or tobacco; authorizing peace officers to transport alleged truants from the child's home to school or to a truancy service center; authorizing retailers to seize false identification; amending Minnesota Statutes 1998, sections 171.171; 340A.702; and 609.685, subdivisions 1a, 2, and 3; Minnesota Statutes 1999 Supplement, sections 260B.235, subdivision 4; 260C.143, subdivision 4; and 340A.503, subdivision 6.
As requested by the House, the Senate has re-referred the subject matter of said bill to the Conference Committee, as formerly constituted, for further consideration.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has reconsidered the vote whereby S. F. No. 3036 was repassed and has also reconsidered the vote whereby the recommendations and the Conference Committee report were adopted on April 27, 2000.
S. F. No. 3036, A bill for an act relating to natural resources; providing for seizure and administrative forfeiture of certain firearms and abandoned property; modifying authority to issue trespass citations; modifying provisions for forfeited vehicles; modifying definition of peace officer; providing civil penalties; appropriating money; amending Minnesota Statutes 1998, sections 97B.002, subdivision 1; and 609.5312, subdivision 4; Minnesota Statutes 1999 Supplement, sections 169.1217, subdivision 9; and 169.123, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 97A.
As requested by the House, the Senate has re-referred the subject matter of said bill to the Conference Committee, as formerly constituted, for further consideration.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:
S. F. No. 2893, A bill for an act relating to business subsidies; providing clarification to the obligation of government agencies and businesses related to certain business subsidies; amending Minnesota Statutes 1999 Supplement, sections 116J.993, subdivision 3; 116J.994, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and by adding a subdivision; and 116J.995.
The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:
Senators Hottinger; Johnson, D. H., and Janezich.
Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.
Patrick E. Flahaven, Secretary of the Senate
McElroy moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 2893. The motion prevailed.
The following Conference Committee Reports were received:
CONFERENCE COMMITTEE REPORT ON H. F. NO. 2826
A bill for an act relating to elections; clarifying provisions and conforming procedures under the Minnesota election law and related provisions; amending Minnesota Statutes 1998, sections 103C.305, subdivision 6; 103C.315, subdivision 2; 123B.09, subdivision 1; 201.061, subdivision 3; 201.171; 203B.02, by adding a subdivision; 203B.06, subdivision 6; 204B.09, subdivision 1a; 204B.12, subdivision 1; 204B.14, subdivisions 2, 5, and 6; 204B.16, subdivision 1; 204B.18, subdivision 1; 204B.19, subdivision 6; 204B.40; 204B.45, subdivision 1; 204C.32, subdivision 1; 204C.37; 204D.13, subdivision 1; 204D.25, subdivision 1; 204D.27, subdivision 8; 205.13, subdivision 6, and by adding a subdivision; 205.17, subdivision 1; 205A.06, subdivision 5, and by adding a subdivision; 206.90, subdivision 6; and 447.32, subdivision 1; Minnesota Statutes 1999 Supplement, sections
10A.31, subdivision 3a; 203B.04, subdivision 1; 203B.085; 367.03, subdivision 4; and 447.32, subdivision 4; repealing Minnesota Statutes 1998, sections 203B.02, subdivision 1a; 204B.09, subdivision 2; and 204B.45, subdivision 1a.
May 2, 2000
The Honorable Steve Sviggum
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 2826, report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 2826 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 1999 Supplement, section 10A.31, subdivision 3a, is amended to read:
Subd. 3a. [QUALIFICATION OF POLITICAL PARTIES.] (a) A major political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if it qualifies as a major political party by July 1 of the taxable year.
(b) A minor political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if the secretary of state certifies to the commissioner of revenue by July 1 of the taxable year that the party satisfies the following conditions:
(1) in the last general election, the party ran a candidate for the office of governor and lieutenant governor, secretary of state, state auditor, or attorney general, who received votes in each county that in the aggregate total at least one percent of the total number of individuals who voted in the election;
(2) it is a political party, not a principal campaign committee; and
(3) it has held a state convention in the last two years and an officer of the party has filed with the secretary of state a certification to that effect.
The secretary of state shall notify each minor political party by the first Monday in January of each odd-numbered year of the conditions necessary for the party to participate in income tax form and property tax refund return programs.
Sec. 2. Minnesota Statutes 1998, section 103C.305, subdivision 6, is amended to read:
Subd. 6. [VACANCY.] (a) If a vacancy occurs in the office of an elected supervisor more than 56 days before the
next state primary, the district board shall fill the vacancy by appointment. The supervisor appointed shall hold
office until December 31 the first Monday in January following the next general election. A
successor shall be elected at the general election following the appointment and hold office for the remainder of the
term or for the next regular term, whichever is appropriate.
(b) If a vacancy occurs less than 56 days before the next state primary, the district board shall fill the vacancy by
appointment. The appointed supervisor shall hold office until the expiration of the term or until December
31 the first Monday in January following the second succeeding general election, whichever is shorter.
A successor shall be elected at the general election preceding expiration of the appointed term and hold office for
the remainder of the term or for the next regular term, whichever is appropriate.
(c) All terms under this subdivision continue until a successor has been elected and has qualified.
Sec. 3. Minnesota Statutes 1998, section 103C.315, subdivision 2, is amended to read:
Subd. 2. [TERMS.] The two supervisors appointed by the state board upon the establishment of a district
shall serve terms ending on December 31 the first Monday in January following the next
general election after their appointment. Their successors shall be elected for terms of four years.
A supervisor shall hold office commencing on the first Monday in January and until a successor
is elected or appointed and has qualified. Vacancies in the office of supervisor appointed by the state board shall
be filled by the state board.
Sec. 4. Minnesota Statutes 1998, section 123B.09, subdivision 1, is amended to read:
Subdivision 1. [SCHOOL BOARD MEMBERSHIP.] The care, management, and control of independent districts is vested in a board of directors, to be known as the school board. The term of office of a member shall be four years commencing on the first Monday in January and until a successor qualifies. The membership of the board shall consist of six elected directors together with such ex officio member as may be provided by law. The board may submit to the electors at any school election the question whether the board shall consist of seven members. If a majority of those voting on the proposition favor a seven-member board, a seventh member shall be elected at the next election of directors for a four-year term and thereafter the board shall consist of seven members.
Those districts with a seven-member board may submit to the electors at any school election at least 150 days before the next election of three members of the board the question whether the board shall consist of six members. If a majority of those voting on the proposition favor a six-member board instead of a seven-member board, two members instead of three members shall be elected at the next election of the board of directors and thereafter the board shall consist of six members.
Sec. 5. Minnesota Statutes 1998, section 201.061, subdivision 4, is amended to read:
Subd. 4. [REGISTRATION BY ELECTION JUDGES; PROCEDURES.] Registration at the polling place on
election day shall be conducted by the election judges. The election judge who registers an individual at the polling
place on election day shall not handle that voter's ballots at any time prior to the opening of the ballot box after the
voting ends. Registration cards and forms for oaths shall be available at each polling place. If an individual who
registers on election day proves residence by oath of a registered voter, the form containing the oath shall be attached
to the individual's registration card until the individual's address is verified by the county auditor.
Registration cards completed on election day shall be forwarded to the county auditor who shall add the name of each
voter to the registration system unless the information forwarded is substantially deficient. A county auditor who
finds an election day registration substantially deficient shall give written notice to the individual whose registration
is found deficient. An election day registration shall not be found deficient solely because the individual who
provided proof of residence was ineligible to do so.
Sec. 6. Minnesota Statutes 1999 Supplement, section 203B.04, subdivision 1, is amended to read:
Subdivision 1. [APPLICATION PROCEDURES.] Except as otherwise allowed by subdivision 2, an application for absentee ballots for any election may be submitted at any time not less than one day before the day of that election. The county auditor shall prepare absentee ballot application forms in the format provided in the rules of the secretary of state and shall furnish them to any person on request. An application submitted pursuant to this subdivision shall be in writing and shall be submitted to:
(a) the county auditor of the county where the applicant maintains residence; or
(b) the municipal clerk of the municipality, or school district if applicable, where the applicant maintains residence.
An application shall be accepted approved if it is timely received, signed and dated by
the applicant, contains the applicant's name and residence and mailing addresses, and states that the applicant is
eligible to vote by absentee ballot for one of the reasons specified in section 203B.02. The application may contain
a request for the voter's date of birth, which must not be made available for public inspection. An application may
be submitted to the county auditor or municipal clerk by an electronic facsimile device, at the discretion of the auditor
or clerk. An application mailed or returned in person to the county auditor or municipal clerk on behalf of a voter
by a person other than the voter must be deposited in the mail or returned in person to the county auditor or
municipal clerk within ten days after it has been dated by the voter and no later than six days before the election.
The absentee ballot applications or a list of persons applying for an absentee ballot may not be made available for
public inspection until the close of voting on election day.
Sec. 7. Minnesota Statutes 1998, section 203B.06, subdivision 6, is amended to read:
Subd. 6. [REQUESTS FROM ABROAD.] If an application for absentee ballots requests delivery of absentee
ballots to a point outside the continental United States, the absentee ballots shall must be sent by
air mail. The transmittal and return envelopes shall be marked with the words "OFFICIAL ELECTION
BALLOTING MATERIAL -- VIA AIR MAIL." must contain the text or symbol or both prescribed by the
United States Postal Service for transmitting election mail outside the continental United States. Priority in
mailing shall be given to all ballots sent by air mail.
Sec. 8. Minnesota Statutes 1999 Supplement, section 203B.085, is amended to read:
203B.085 [COUNTY AUDITOR'S OFFICE TO REMAIN OPEN DURING CERTAIN HOURS PRECEDING ELECTION.]
The county auditor's office in each county must be open for acceptance of absentee ballot applications and casting of absentee ballots from 10:00 a.m. to 3:00 p.m. on Saturday and until 5:00 p.m. on Monday immediately preceding a primary, special, or general election. Town clerks' offices must be open for absentee voting from 10:00 a.m. to 12:00 noon on the Saturday before a town general election held in March. The school district clerk, when performing the county auditor's election duties, need not comply with this section.
Sec. 9. Minnesota Statutes 1998, section 204B.09, subdivision 1a, is amended to read:
Subd. 1a. [ABSENT CANDIDATES.] A candidate for special district, county, state, or federal office who will be absent from the state during the filing period may submit a properly executed affidavit of candidacy, the appropriate filing fee, and any necessary petitions in person to the filing officer. The candidate shall state in writing the reason for being unable to submit the affidavit during the filing period. The affidavit, filing fee, and petitions must be submitted to the filing officer during the seven days immediately preceding the candidate's absence from the state. Nominating petitions may be signed during the 14 days immediately preceding the date when the affidavit of candidacy is filed.
Sec. 10. Minnesota Statutes 1998, section 204B.09, subdivision 2, is amended to read:
Subd. 2. [OTHER ELECTIONS.] Affidavits of candidacy and nominating petitions for city, town or other elective offices shall be filed during the time and with the official specified in chapter 205 or other applicable law or charter, except as provided for a special district candidate under subdivision 1a. Affidavits of candidacy and applications filed on behalf of eligible voters for school board office shall be filed during the time and with the official specified in chapter 205A or other applicable law.
Sec. 11. Minnesota Statutes 1998, section 204B.09, is amended by adding a subdivision to read:
Subd. 3. [WRITE-IN CANDIDATES.] A candidate for state or federal office who wants write-in votes for the candidate to be counted must file a written request with the filing office for the office sought no later than the day before the general election. The filing officer shall provide copies of the form to make the request.
Sec. 12. Minnesota Statutes 1998, section 204B.12, subdivision 1, is amended to read:
Subdivision 1. [BEFORE PRIMARY.] A candidate may withdraw from the primary ballot by filing an affidavit
of withdrawal with the same official who received the affidavit of candidacy. The affidavit shall request that official
to withdraw the candidate's name from the ballot and shall be filed no later than three two days after
the last day for filing for the office.
Sec. 13. Minnesota Statutes 1998, section 204B.14, subdivision 2, is amended to read:
Subd. 2. [SEPARATE PRECINCTS; COMBINED POLLING PLACE.] (a) The following shall constitute at least one election precinct:
(1) each city ward; and
(2) each town and each statutory city.
(b) A single, accessible, combined polling place may be established no later than June 1 of any year:
(1) for any city of the third or fourth class, any town, or any city having territory in more than one county, in which all the voters of the city or town shall cast their ballots;
(2) for two contiguous precincts in the same municipality that have a combined total of fewer than 500 registered voters; or
(3) for up to four contiguous municipalities located entirely outside the metropolitan area, as defined by section
473.121, subdivision 2, that are contained in the same congressional, legislative, and county
commissioner district.
A copy of the ordinance or resolution establishing a combined polling place must be filed with the county auditor within 30 days after approval by the governing body. A polling place combined under clause (3) must be approved by the governing body of each participating municipality. A municipality withdrawing from participation in a combined polling place must do so by filing a resolution of withdrawal with the county auditor no later than May 1 of any year.
The secretary of state shall provide a separate polling place roster for each precinct served by the combined polling place. A single set of election judges may be appointed to serve at a combined polling place. The number of election judges required must be based on the total number of persons voting at the last similar election in all precincts to be voting at the combined polling place. Separate ballot boxes must be provided for the ballots from each precinct. The results of the election must be reported separately for each precinct served by the combined polling place, except in a polling place established under clause (2) where one of the precincts has fewer than ten registered voters, in which case the results of that precinct must be reported in the manner specified by the secretary of state.
Sec. 14. Minnesota Statutes 1998, section 204B.14, subdivision 5, is amended to read:
Subd. 5. [PRECINCT BOUNDARIES; DESCRIPTION; MAPS.] When a precinct boundary has been changed,
the municipal clerk shall immediately notify the secretary of state. Upon receipt of this notice or a notice of
annexation from the Minnesota municipal board, the secretary of state shall provide the municipal clerk with a base
map on which the clerk shall note the boundary change. The clerk shall return the file a
corrected base map to with the secretary of state within 30 days after the boundary change was
made. Upon request, the secretary of state shall provide a base map to the municipal clerk. The secretary
of state shall update the precinct boundary database, prepare a corrected precinct map, and provide the corrected
precinct map to the county auditor and the municipal clerk who shall make them available for public inspection.
The county auditor shall prepare and file precinct boundary maps for precincts in unorganized territories in the same
manner as provided for precincts in municipalities. For every election held in the municipality the election judges
shall be furnished precinct maps as
provided in section 201.061, subdivision 6. If a municipality changes the boundary of an election precinct, the county auditor shall notify each school district with territory affected by the boundary change at least 30 days before the effective date of the change.
Sec. 15. Minnesota Statutes 1998, section 204B.14, subdivision 6, is amended to read:
Subd. 6. [PRECINCT BOUNDARIES TO FOLLOW PHYSICAL FEATURES.] (a) Unless a precinct consists entirely of unorganized territory or more than one precinct is entirely included within one census block, for the first two years following a decennial census an election precinct boundary must follow a census block line.
(b) The boundaries of election precincts shall must follow visible, clearly recognizable
physical features. If it is not possible to establish the boundary between any two adjacent precincts along such
features, the boundary around the two precincts combined shall be established in the manner provided in the rules
of the secretary of state to comply with the provisions of this subdivision. The maps required by subdivision 5 shall
clearly indicate which boundaries do not follow visible, clearly recognizable physical features.
(c) For the purposes of this subdivision, "visible, clearly recognizable physical feature" means a street, road, boulevard, parkway, river, stream, shoreline, drainage ditch, railway right-of-way, or any other line which is clearly visible from the ground. A street or other roadway which has been platted but not graded is not a visible, clearly recognizable physical feature for the purposes of this subdivision.
(d) If the secretary of state determines that a precinct boundary does not comply with this subdivision, the secretary of state shall send a notice to the county auditor or municipal clerk specifying the action needed to correct the precinct boundary. If, after 60 days, the county or municipal governing body has not taken action to correct the precinct boundary, the secretary of state shall correct the precinct boundary and notify the county auditor or municipal clerk of the action taken.
(e) If a visible, clearly recognizable physical feature is not available for use as a precinct boundary, an alternate boundary used by the United States Bureau of the Census may be authorized by the secretary of state.
Sec. 16. Minnesota Statutes 1998, section 204B.16, subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY; LOCATION.] The governing body of each municipality and of each county with precincts in unorganized territory shall designate by ordinance or resolution a polling place for each election precinct. Polling places must be designated and ballots must be distributed so that no one is required to go to more than one polling place to vote in a school district and municipal election held on the same day. The polling place for a precinct in a city or in a school district located in whole or in part in the metropolitan area defined by section 473.121 shall be located within the boundaries of the precinct or within 3,000 feet of one of those boundaries unless a single polling place is designated for a city pursuant to section 204B.14, subdivision 2, or a school district pursuant to section 205A.11. The polling place for a precinct in unorganized territory may be located outside the precinct at a place which is convenient to the voters of the precinct. If no suitable place is available within a town or within a school district located outside the metropolitan area defined by section 473.121, then the polling place for a town or school district may be located outside the town or school district within five miles of one of the boundaries of the town or school district.
Sec. 17. Minnesota Statutes 1998, section 204B.18, subdivision 1, is amended to read:
Subdivision 1. [BOOTHS.] Each polling place must contain a number of voting booths in proportion to the number of individuals eligible to vote in the precinct. Each booth must be at least six feet high, three feet deep and two feet wide with a shelf at least two feet long and one foot wide placed at a convenient height for writing. The booth shall be provided with a door or curtains. Each accessible polling place must have at least one accessible voting booth or other accessible voting station. All booths or stations must be constructed so that a voter is free from observation while marking ballots. In all other polling places every effort must be made to provide at least one accessible voting booth or other accessible voting station. During the hours of voting, the booths or stations must
have instructions, a pencil, and other supplies needed to mark the ballots. If needed, a chair must be provided for
elderly and handicapped voters to use while in the voting booth. All ballot boxes, voting booths,
voting stations, and election judges must be in open public view in the polling place.
Sec. 18. Minnesota Statutes 1998, section 204B.19, subdivision 6, is amended to read:
Subd. 6. [HIGH SCHOOL STUDENTS.] Notwithstanding any other requirements of this section, a student
enrolled in a high school in Minnesota who has attained the age of 16 is eligible to be appointed as a without party
affiliation trainee election judge in the municipality county in which the student resides. The student
must meet qualifications for trainee election judges specified in rules of the secretary of state. A student appointed
as a trainee election judge may be excused from school attendance during the hours that the student is serving as a
trainee election judge if the student submits a written request signed and approved by the student's parent or guardian
to be absent from school and a certificate from the appointing authority stating the hours during which the student
will serve as a trainee election judge to the principal of the school at least ten days prior to the election. Students
shall not serve as trainee election judges after 10:00 p.m. Notwithstanding section 177.24 to the contrary, trainee
election judges may be paid not less than two-thirds of the minimum wage for a large employer. The principal of
the school may approve a request to be absent from school conditioned on acceptable academic performance and the
requirement that the student must have completed or be enrolled in a course of study in government at the time of
service as a trainee election judge.
Sec. 19. Minnesota Statutes 1998, section 204B.40, is amended to read:
204B.40 [BALLOTS; ELECTION RECORDS AND OTHER MATERIALS; DISPOSITION; INSPECTION OF BALLOTS.]
The county auditors and, municipal clerks, and school district clerks shall retain all
election materials returned to them after any election for at least one year 22 months from the date
of that election. The county auditor may also retain election materials from school district elections. All
election materials involved in a contested election shall must be retained for one year 22
months or until the contest has been finally determined, whichever is later. Abstracts filed by canvassing boards
shall be retained permanently by any officer with whom those abstracts are filed. Election materials no longer
required to be retained pursuant to this section shall be disposed of in accordance with sections 138.163 to 138.21.
Sealed envelopes containing voted ballots must be retained unopened, except as provided in this section, in a secure
location. The county auditor, municipal clerk, or school district clerk shall not permit any voted ballots to be
tampered with or defaced.
After the time for filing a notice of contest for an election has passed, the secretary of state may open the sealed ballot envelopes and inspect the ballots for that election maintained by the county auditors, municipal clerks, or school district clerks for the purpose of monitoring and evaluating election procedures. No inspected ballot may be marked or identified in any manner. After inspection, all ballots must be returned to the ballot envelope and the ballot envelope must be securely resealed.
Sec. 20. Minnesota Statutes 1998, section 204C.32, subdivision 1, is amended to read:
Subdivision 1. [COUNTY CANVASS.] The county canvassing board shall meet at the county auditor's office on or before the third day following the state primary. After taking the oath of office, the canvassing board shall publicly canvass the election returns delivered to the county auditor. The board shall complete the canvass no later than the third day following the state primary and shall promptly prepare and file with the county auditor a report that states:
(a) The number of individuals voting at the election in the county, and in each precinct;
(b) The number of individuals registering to vote on election day and the number of individuals registered before election day in each precinct;
(c) For each major political party, the names of the candidates running for each partisan office and the number of votes received by each candidate in the county and in each precinct;
(d) The names of the candidates of each major political party who are nominated; and
(e) The number of votes received by each of the candidates for nonpartisan office in each precinct in the county and the names of the candidates nominated for nonpartisan office.
Upon completion of the canvass, the county auditor shall mail or deliver a notice of nomination to each nominee for county office voted for only in that county. The county auditor shall transmit one of the certified copies of the county canvassing board report for state and federal offices to the secretary of state by express mail or similar service immediately upon conclusion of the county canvass. The secretary of state shall mail a notice of nomination to each nominee for state or federal office.
Sec. 21. Minnesota Statutes 1998, section 204C.33, subdivision 1, is amended to read:
Subdivision 1. [COUNTY CANVASS.] The county canvassing board shall meet at the county auditor's office on or before the seventh day following the state general election. After taking the oath of office, the board shall promptly and publicly canvass the general election returns delivered to the county auditor. Upon completion of the canvass, the board shall promptly prepare and file with the county auditor a report which states:
(a) The number of individuals voting at the election in the county and in each precinct;
(b) The number of individuals registering to vote on election day and the number of individuals registered before election day in each precinct;
(c) The names of the candidates for each office and the number of votes received by each candidate in the county and in each precinct;
(d) The number of votes counted for and against a proposed change of county lines or county seat; and
(e) The number of votes counted for and against a constitutional amendment or other question in the county and in each precinct.
The result of write-in votes cast on the general election ballots must be compiled by the county auditor before the county canvass, except that write-in votes for a candidate for state or federal office must not be counted unless the candidate has timely filed a request under section 204B.09, subdivision 3. The county auditor shall arrange for each municipality to provide an adequate number of election judges to perform this duty or the county auditor may appoint additional election judges for this purpose. The county auditor may open the envelopes or containers in which the voted ballots have been sealed in order to count and record the write-in votes and must reseal the voted ballots at the conclusion of this process.
Upon completion of the canvass, the county canvassing board shall declare the candidate duly elected who received the highest number of votes for each county and state office voted for only within the county. The county auditor shall transmit one of the certified copies of the county canvassing board report for state and federal offices to the secretary of state by express mail or similar service immediately upon conclusion of the county canvass.
Sec. 22. Minnesota Statutes 1998, section 204C.37, is amended to read:
204C.37 [COUNTY CANVASS; RETURN OF REPORTS TO SECRETARY OF STATE.]
Two copies of the reports required by sections 204C.32, subdivision 1 and 204C.33, subdivision 1 shall be certified under the official seal of the county auditor. Each copy shall be enclosed in an envelope addressed to the secretary of state, with the county auditor's name and official address and the words "Election Returns" endorsed on the
envelope. The copies shall copy of the canvassing board report not sent by express mail and the precinct
summary statements must be mailed or delivered to the secretary of state and, if mailed, shall be forwarded
by different mails. If neither copy is received by the secretary of state within ten days following the applicable
election, the secretary of state shall immediately notify the county auditor, who shall deliver another copy to the
secretary of state by special messenger.
Sec. 23. Minnesota Statutes 1998, section 204D.13, subdivision 1, is amended to read:
Subdivision 1. [ORDER OF OFFICES.] The candidates for partisan offices shall be placed first on the
white ballot and shall appear in the following order: senator in Congress shall be first; representative in
Congress, second; state senator, third; and state representative, fourth. The candidates for state offices shall follow
in the order specified by the secretary of state. Candidates for governor and lieutenant governor shall appear so that
a single vote may be cast for both offices.
Sec. 24. Minnesota Statutes 1998, section 204D.25, subdivision 1, is amended to read:
Subdivision 1. [FORM.] Except as provided in subdivision 2, the county auditor shall prepare separate ballots for a special primary and special election as required by sections 204D.17 to 204D.27. The ballots shall be headed "Special Primary Ballot" or "Special Election Ballot" as the case may be, followed by the date of the special primary or special election. Immediately below the title of each office to be filled shall be printed the words "To fill vacancy in term expiring ..........," with the date of expiration of the term and any other information that is necessary to distinguish the office from any other office to be voted upon at the same election. For a special primary or special election, the instructions to voters may use the singular tense when referring to candidates and offices when only one office is to be filled at the special election. Otherwise the form of the ballots shall comply as far as practicable with the laws relating to ballots for state primaries and state general elections. The county auditor shall post a sample of each ballot in the auditor's office as soon as prepared and not later than four days before the special primary or special election. Publication of the sample ballot for a special primary or special election is not required.
Sec. 25. Minnesota Statutes 1998, section 204D.27, subdivision 8, is amended to read:
Subd. 8. [CERTIFICATE OF CONGRESSIONAL ELECTION.] No certificate of election in a special election
for senator or representative in Congress may be issued by the county auditor of any county or by the
secretary of state to any individual declared elected by the county or state canvassing board until seven days after the
canvassing board has canvassed the returns and declared the results of the election. In case of a contest the certificate
may not be issued until the district court determines the contest.
Sec. 26. Minnesota Statutes 1998, section 205.13, is amended by adding a subdivision to read:
Subd. 1b. [ABSENT CANDIDATES.] A candidate for municipal office who will be absent from the state during the filing period may submit a properly executed affidavit of candidacy, the appropriate filing fee, and any necessary petitions in person to the filing officer. The candidate shall state in writing the reason for being unable to submit the affidavit during the filing period. The affidavit, filing fee, and petitions must be submitted to the filing officer during the seven days immediately preceding the candidate's absence from the state. In cities of the first class, and in any city where the use of nominating petitions is permitted under the city's charter, a nominating petition for a candidate who will be absent from the state during the filing period may be signed during the 14 days immediately preceding the date when the affidavit of candidacy is filed.
Sec. 27. Minnesota Statutes 1998, section 205.13, subdivision 6, is amended to read:
Subd. 6. [WITHDRAWAL.] A candidate for a municipal elective office may withdraw from the election by filing
an affidavit of withdrawal with the municipal clerk by 12 o'clock noon of the day no later than 5:00 p.m.
two days after the last day for filing affidavits of candidacy. Thereafter, no candidate may file an affidavit of
withdrawal.
Sec. 28. Minnesota Statutes 1998, section 205.17, subdivision 1, is amended to read:
Subdivision 1. [SECOND, THIRD, AND FOURTH CLASS CITIES; TOWNS.] In all statutory and home rule
charter cities of the second, third and fourth class, and in all towns, for the municipal general election, the municipal
clerk shall have printed on light green paper the official ballot containing the names of all candidates for municipal
offices. The ballot shall be printed in blocks quantities of 25, 50, or 100, shall
be headed "City or Town Election Ballot," shall state the name of the city or town and the date of the election, and
shall conform in other respects to the white ballot used at the state general election. The names shall be arranged
on city ballots in the manner provided for the state elections. On town ballots names of the candidates for each office
shall be arranged either:
(1) alphabetically according to the candidates' surnames; or
(2) in the manner provided for state elections if the town electors chose at the town's annual meeting to arrange the names in that way for at least two consecutive years.
Sec. 29. Minnesota Statutes 1998, section 205A.06, is amended by adding a subdivision to read:
Subd. 1c. [ABSENT CANDIDATES.] A candidate for the office of school board member who will be absent from the state during the filing period may submit a properly executed affidavit of candidacy, the appropriate filing fee, and any necessary petitions in person to the filing officer. The candidate shall state in writing the reason for being unable to submit the affidavit during the filing period. The affidavit, filing fee, and petitions must be submitted to the filing officer during the seven days immediately preceding the candidate's absence from the state.
Sec. 30. Minnesota Statutes 1998, section 205A.06, subdivision 5, is amended to read:
Subd. 5. [WITHDRAWAL.] A candidate for a school district elective office may withdraw from the election by
filing an affidavit of withdrawal with the school district clerk by 12:00 noon of the day no later than 5:00
p.m. two days after the last day for filing affidavits of candidacy. After that date, no candidate may file an
affidavit of withdrawal.
Sec. 31. Minnesota Statutes 1998, section 206.90, subdivision 6, is amended to read:
Subd. 6. [BALLOTS.] In precincts using optical scan voting systems, a single ballot card on which all ballot information is included must be printed in black ink on white colored material except that marks not to be read by the automatic tabulating equipment may be printed in another color ink.
When optical scan ballots are used, the offices to be elected must appear in the following order: federal offices; state legislative offices; constitutional offices; proposed constitutional amendments; county offices and questions; municipal offices and questions; school district offices and questions; special district offices and questions; and judicial offices.
On optical scan ballots, the names of candidates and the words "yes" and "no" for ballot questions must be printed as close to their corresponding vote targets as possible.
The line on an optical scan ballot for write-in votes must contain the words "write-in, if any."
If a primary ballot contains both a partisan ballot and a nonpartisan ballot, the instructions to voters must include a statement that reads substantially as follows: "THIS BALLOT CARD CONTAINS A PARTISAN BALLOT AND A NONPARTISAN BALLOT. ON THE PARTISAN BALLOT YOU ARE PERMITTED TO VOTE FOR CANDIDATES OF ONE POLITICAL PARTY ONLY." If a primary ballot contains political party columns on both sides of the ballot, the instructions to voters must include a statement that reads substantially as follows: "ADDITIONAL POLITICAL PARTIES ARE PRINTED ON THE OTHER SIDE OF THIS BALLOT. VOTE FOR ONE POLITICAL PARTY ONLY." At the bottom of each political party column on the primary ballot, the ballot must contain a statement that reads substantially as follows: "CONTINUE VOTING ON THE NONPARTISAN BALLOT." The instructions in section 204D.08, subdivision 4, do not apply to optical scan partisan primary ballots.
Sec. 32. Minnesota Statutes 1999 Supplement, section 367.03, subdivision 4, is amended to read:
Subd. 4. [OFFICERS; NOVEMBER ELECTION.] Supervisors and other town officers in towns that hold the town general election in November shall be elected for terms of four years commencing on the first Monday in January and until their successors are elected and qualified. The clerk and treasurer shall be elected in alternate years.
Sec. 33. Minnesota Statutes 1998, section 447.32, subdivision 1, is amended to read:
Subdivision 1. [TERMS OF OFFICE.] Each hospital district shall be governed by a hospital board composed of
one member elected from each city and town in the district and one member elected at large. A member's term of
office is four years commencing on the first Monday in January and until a successor qualifies. At the first
election, however, members must be elected for terms set by the governing body calling the election, so that half the
terms, as nearly as may be, expire on December 31 the first Monday in January of the next
even-numbered odd-numbered year and the remaining terms expire two years from that date. After
that, before a member's term expires, a new member shall be elected for a term of four years from the expiration date.
If a member dies, resigns, fails to qualify, or moves from the hospital district, a successor may be appointed by
a majority of the remaining members of the board. The successor shall hold office until December 31 the
first Monday in January after the next regular hospital district election. At the election a successor must be
elected to fill the unexpired term.
When an additional city or town is annexed to the district, in accordance with section 447.36, its governing body
shall by resolution appoint a member to the board. The member shall hold office until December 31 the
first Monday in January after the next regular hospital district election. At the election a successor must be
elected for a term of either two or four years, to be set by the hospital board so that the number of members of the
board whose terms expire in any later year will not exceed one-half of the members plus one.
Sec. 34. Minnesota Statutes 1999 Supplement, section 447.32, subdivision 4, is amended to read:
Subd. 4. [CANDIDATES; BALLOTS; CERTIFYING ELECTION.] A person who wants to be a candidate for
the hospital board shall file an affidavit of candidacy for the election either as member at large or as a member
representing the city or town where the candidate resides. The affidavit of candidacy must be filed with the city or
town clerk not more than ten weeks nor less than eight weeks before the election. The city or town clerk must
forward the affidavits of candidacy to the clerk of the hospital district or, for the first election, the clerk of the most
populous city or town immediately after the last day of the filing period. A candidate may withdraw from the
election by filing an affidavit of withdrawal with the clerk of the district no later than 12:00 p.m. on the day
5:00 p.m. two days after the last day to file affidavits of candidacy.
Voting must be by secret ballot. The clerk shall prepare, at the expense of the district, necessary ballots for the election of officers. Ballots must be printed on tan paper and prepared as provided in the rules of the secretary of state. The ballots must be marked and initialed by at least two judges as official ballots and used exclusively at the election. Any proposition to be voted on may be printed on the ballot provided for the election of officers. The hospital board may also authorize the use of voting systems subject to chapter 206. Enough election judges may be appointed to receive the votes at each polling place. The election judges shall act as clerks of election, count the ballots cast, and submit them to the board for canvass.
After canvassing the election, the board shall issue a certificate of election to the candidate who received the largest number of votes cast for each office. The clerk shall deliver the certificate to the person entitled to it in person or by certified mail. Each person certified shall file an acceptance and oath of office in writing with the clerk within 30 days after the date of delivery or mailing of the certificate. The board may fill any office as provided in subdivision 1 if the person elected fails to qualify within 30 days, but qualification is effective if made before the board acts to fill the vacancy.
Sec. 35. [REPEALER.]
Minnesota Statutes 1998, section 204B.45, subdivision 1a, is repealed."
Delete the title and insert:
"A bill for an act relating to elections; clarifying provisions and conforming procedures under the Minnesota election law and related provisions; amending Minnesota Statutes 1998, sections 103C.305, subdivision 6; 103C.315, subdivision 2; 123B.09, subdivision 1; 201.061, subdivision 4; 203B.06, subdivision 6; 204B.09, subdivisions 1a, 2, and by adding a subdivision; 204B.12, subdivision 1; 204B.14, subdivisions 2, 5, and 6; 204B.16, subdivision 1; 204B.18, subdivision 1; 204B.19, subdivision 6; 204B.40; 204C.32, subdivision 1; 204C.33, subdivision 1; 204C.37; 204D.13, subdivision 1; 204D.25, subdivision 1; 204D.27, subdivision 8; 205.13, subdivision 6, and by adding a subdivision; 205.17, subdivision 1; 205A.06, subdivision 5, and by adding a subdivision; 206.90, subdivision 6; and 447.32, subdivision 1; Minnesota Statutes 1999 Supplement, sections 10A.31, subdivision 3a; 203B.04, subdivision 1; 203B.085; 367.03, subdivision 4; and 447.32, subdivision 4; repealing Minnesota Statutes 1998, section 204B.45, subdivision 1a."
We request adoption of this report and repassage of the bill.
House Conferees: Marty Seifert, Erik Paulsen and Stephen G. Wenzel.
Senate Conferees: Cal Larson, Carol Flynn and John Marty.
Seifert, M., moved that the report of the Conference Committee on H. F. No. 2826 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
H. F. No. 2826, A bill for an act relating to elections; clarifying provisions and conforming procedures under the Minnesota election law and related provisions; amending Minnesota Statutes 1998, sections 103C.305, subdivision 6; 103C.315, subdivision 2; 123B.09, subdivision 1; 201.061, subdivision 3; 201.171; 203B.02, by adding a subdivision; 203B.06, subdivision 6; 204B.09, subdivision 1a; 204B.12, subdivision 1; 204B.14, subdivisions 2, 5, and 6; 204B.16, subdivision 1; 204B.18, subdivision 1; 204B.19, subdivision 6; 204B.40; 204B.45, subdivision 1; 204C.32, subdivision 1; 204C.37; 204D.13, subdivision 1; 204D.25, subdivision 1; 204D.27, subdivision 8; 205.13, subdivision 6, and by adding a subdivision; 205.17, subdivision 1; 205A.06, subdivision 5, and by adding a subdivision; 206.90, subdivision 6; and 447.32, subdivision 1; Minnesota Statutes 1999 Supplement, sections 10A.31, subdivision 3a; 203B.04, subdivision 1; 203B.085; 367.03, subdivision 4; and 447.32, subdivision 4; repealing Minnesota Statutes 1998, sections 203B.02, subdivision 1a; 204B.09, subdivision 2; and 204B.45, subdivision 1a.
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 132 yeas and 0 nays as follows:
Those who voted in the affirmative were:
The bill was repassed, as amended by Conference, and its title agreed to.
CONFERENCE COMMITTEE REPORT ON H. F. NO. 2891
A bill for an act relating to transportation; appropriating money for state road construction, public transit, and other purposes; establishing an intergovernmental cooperative facilities loan fund; establishing a major transportation projects commission; restricting expenditures for commuter rail and light rail transit; canceling bonding authorization for light rail transit; directing a study of freeway ramp meters in the metropolitan area; providing for a grant to the University of Minnesota for design and engineering of personal rapid transit; directing a study of high-occupancy vehicle lane use by certain vehicles; providing for approval of and payment under supplemental goods or services agreements of the commissioner of transportation; authorizing suspension of motor vehicle registration when tax is paid by dishonored check; exempting dealers in firefighting equipment from motor vehicle dealer licensing; providing for commuter rail plan dispute resolution; providing for inspection of vehicles of motor carriers; requiring the budget for light rail transit to include cost of utility relocation; requiring a municipality to issue permits for a specific business or use that uses river transportation as a major mode of transportation once a special permit has been issued and an environmental assessment worksheet has been completed; expanding eligibility for replacement transit service program; requiring a report on metro mobility; establishing working group to assess impact of DM&E rail line project; requiring study and legislative report on statewide public safety radio system; clarifying a definition of state license and service fees; sunsetting a department fee and an account; amending Minnesota Statutes 1998, sections 16A.6701, subdivision 1; 161.32, by adding a subdivision; 168.27, subdivision 8; 168A.29, subdivision 1; 169.781, by adding a subdivision; 174.35; 216B.16, by adding a subdivision; 221.131, subdivision 4; 221.132; and 473.388, subdivision 2; Minnesota Statutes 1999 Supplement, sections 168.17; 174.88; 174.86, subdivision 2, and by adding a subdivision; and 221.0252, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters 161; 174; and 462; repealing Minnesota Statutes 1998, section 299A.70.
May 8, 2000
The Honorable Steve Sviggum
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 2891, 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. 2891 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
TRANSPORTATION APPROPRIATIONS
Section 1. [APPROPRIATIONS.]
The sums in the column under "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the state agencies or officials indicated, to be spent for the purposes indicated, for fiscal year 2001.
SUMMARY
TRANSPORTATION $566,551,000
METROPOLITAN COUNCIL 20,000,000
PUBLIC SAFETY 119,000
TRADE AND ECONOMIC DEVELOPMENT 750,000
FINANCE 15,100,000
TOTAL $602,520,000
Trunk Highway Bond Proceeds Account 100,100,000
Trunk Highway Fund 102,298,000
General Fund 400,122,000
APPROPRIATIONS
$
Sec. 2. TRANSPORTATION
Subdivision 1. To the commissioner of transportation for the
purposes specified in this section 566,551,000
Trunk Highway Bond
Proceeds Account 100,100,000
Trunk Highway Fund 102,179,000
General Fund 364,372,000
Subd. 2. Trunk Highway Construction 100,000,000
This appropriation is from the bond proceeds account in the trunk highway fund.
This appropriation is available for expenditure beginning July 1, 2000.
The commissioner may not spend more than $14,000,000 of this appropriation for program delivery.
This appropriation is for reconstruction and replacement of key bridges on the state trunk highway system; for construction, improvement, and maintenance of the interregional corridor system as identified by the commissioner; for the improvement of highways classified as bottlenecks by the commissioner; for providing highway-related advantages for transit; and for acquisition of properties necessary to locate, construct, reconstruct, improve, and maintain the trunk highway system. Before this appropriation may be used, the commissioner of transportation must demonstrate to the commissioner of finance that the proposed use of debt financing to accelerate the project is a cost-effective investment of state funds.
Subd. 3. State Road Construction 359,000,000
Trunk Highway 76,500,000
General 282,500,000
(a) Of this appropriation:
(1) $177,000,000 is for state trunk highway improvements within the seven-county metropolitan area primarily for the purpose of improving traffic flow and expanding highway capacity by eliminating traffic bottlenecks;
(2) $177,000,000 is for improvements on state trunk highways outside the seven-county metropolitan area that the commissioner designates as at-risk interregional corridors; and
(3) $5,000,000 is for bus transit ways or highway-related transit advantages.
(b) Of the appropriations under this section, the commissioner may not spend more than $50,000,000 for program delivery.
(c) The appropriation under this section is available through June 30, 2003. On July 1, 2003, any part of this appropriation not spent cancels to the trunk highway fund. The commissioner shall report by February 1, 2003, to the chairs of the senate and house of representatives committees having jurisdiction over transportation policy and transportation finance on any projects
that the department of transportation has scheduled to be constructed with this appropriation that the commissioner determines will be canceled or delayed as a result of any part of this appropriation canceling to the trunk highway fund. For purposes of this paragraph, money encumbered by the commissioner for a trunk highway project is considered to be spent.
Subd. 4. Report on Projects
The commissioner shall by August 1 of each calendar year from 2000 to 2002 report to the chairs of the senate and house of representatives committees with jurisdiction over transportation policy and finance on the status of each project that is financed in whole or in part from the money appropriated under subdivisions 2 and 3. For each such project the report must identify: (1) the estimated full cost; (2) a schedule for completion; (3) the current status of right-of-way acquisition and environmental review; and (4) the project's status in the commissioner's current statewide transportation improvement program.
Subd. 5. Local Roads 30,000,000
Of this appropriation, the commissioner shall transfer $23,800,000 to the county state-aid highway fund and $6,200,000 to the municipal state-aid street fund. These amounts are added to the appropriation for local roads in Laws 1999, chapter 238, article 1, subdivision 6. This appropriation is available until spent.
Subd. 6. Trunk Highway Facility Projects 25,674,000
The appropriations in this subdivision are from the trunk highway fund.
(a) St. Cloud Headquarters Addition 10,350,000
To design, construct, furnish, and equip an addition to and remodeling of the St. Cloud headquarters building.
(b) Detroit Lakes Headquarters Addition 8,724,000
To construct an addition to and remodel the Detroit Lakes district headquarters building.
(c) Regional Transportation Management Center 5,000,000
To design, construct, furnish, and equip a regional transportation management center and integrate it with the existing metropolitan headquarters building in Roseville. This appropriation anticipates up to $15,774,000 in matching federal money. Within three years of the date on which occupation of the new transportation management center has been completed, the commissioner must sell the building that was being used as the traffic management center on the effective date of this act to an entity other than the state or a state agency. This requirement does not apply if the commissioner determines that no offers made to the commissioner for purchase of the building will return fair market value for it.
(d) Moorhead Truck Station 1,600,000
To construct, furnish, and equip a new truck station building in Moorhead in partnership with the city of Moorhead and Clay county.
(e) The $514,000 appropriation in Laws 1996, chapter 463, section 19, subdivision 5, clause (20), for the addition to the Dilworth truck station is canceled.
Subd. 7. Rail Service Improvement 5,000,000
For purposes defined under the rail service improvement program under Minnesota Statutes, sections 222.46 to 222.63.
Subd. 8. North Star Corridor North Extension Study 100,000
To study the feasibility of extending the North Star commuter rail corridor between Minneapolis and St. Cloud north of the city of Little Falls. This appropriation must be used to match federal funds.
Subd. 9. DM&E Working Group 100,000
(a) The commissioner of transportation or the commissioner's designee shall convene a multiagency working group consisting of the commissioners of public safety, pollution control agency, agriculture, trade and economic development, and transportation, and director of Minnesota Planning, or their designees. The director of Minnesota Planning or the director's designee shall serve as chair of the working group.
(b) The working group will complete the following tasks:
(1) evaluate the environmental impact statement of the surface transportation board (STB) concerning the DM&E rail line project, summarize its findings and directives, and determine
whether and to what extent the STB's assessment may have failed in identifying the DM&E rail line project's impact on the state; and
(2) develop and present recommendations to the legislature of how to maximize opportunities to move Minnesota products to market on the DM&E railroad while minimizing environmental, social, and other public costs.
(c) Included in the evaluation and recommendations must be methods to:
(1) maximize the volume of Minnesota products shipped on the DM&E rail line including consideration of modifications to ports and other infrastructure which could enhance and benefit the state;
(2) assure appropriate environmental protections are used to minimize land use, protect wetlands, and mitigate noise or other environmental impacts;
(3) involve local units of government in siting issues and right-of-way acquisitions; and
(4) determine what direct and indirect costs are likely to accrue to local units of government and private property owners as a result of the project, including, but not limited to, costs for mitigation, right-of-way acquisitions, and crossing safety.
(d) The commissioners shall directly negotiate and advocate with the rail line to assure timely access for shipping Minnesota products and to assure minimal environmental and social impact. The working group shall present an interim report to the legislature by January 15, 2001, and a final report to the legislature no later than six months following the date of issuance of the STB's draft environmental impact statement.
Subd. 10. Port Development Assistance 2,000,000
For port development assistance grants. The grants must be made to political subdivisions for capital improvements constructed after the effective date of this appropriation under Minnesota Statutes, chapter 457A. Any improvement made with the proceeds of these grants must be owned by a public body.
Subd. 11. Local Bridge Replacement and Rehabilitation 39,000,000
To match federal money and to replace or rehabilitate local deficient bridges.
Political subdivisions may use grants made under this subdivision to construct or reconstruct bridges, including:
(1) matching federal aid grants to construct or reconstruct key bridges;
(2) paying the costs of preliminary engineering and environmental studies authorized under Minnesota Statutes, section 174.50, subdivision 6a;
(3) paying the costs to abandon an existing bridge that is deficient and in need of replacement, but where no replacement will be made; and
(4) paying the costs to construct a road or street to facilitate the abandonment of an existing bridge determined by the commissioner to be deficient, if the commissioner determines that construction of the road or street is more economical than replacing the existing bridge.
Subd. 12. Sales Tax 4,800,000
For payment of sales tax that may not be paid from the trunk highway fund.
Subd. 13. Transit 872,000
For grants to public transit systems under Minnesota Statutes, section 174.24, to acquire rolling stock and intelligent transportation system technologies, and for operating assistance. Priority must be given to projects to match available federal money. Up to $450,000 may be used for transit operating assistance. This appropriation does not add to the agency's budget base.
Subd. 14. Major Projects Commission 5,000
From the trunk highway fund for expenses relating to the major transportation projects commission, including expenses of nonlegislative members.
Sec. 3. METROPOLITAN COUNCIL TRANSIT
Subdivision 1. To the metropolitan council for the purposes specified in this section 20,000,000
Subd. 2. Bus Garages 10,000,000
To construct bus garages. This appropriation is available until spent.
Subd. 3. Bus Transit Ways 6,300,000
For engineering, design, and construction of bus transit ways, including, but not limited to, acquisition of land and rights-of-way. This appropriation is available until spent.
Subd. 4. Metropolitan Transit Operations 3,700,000
This appropriation does not add to the agency's budget base.
Sec. 4. PUBLIC SAFETY 119,000
Subdivision 1. Driver's License Photographic Equipment 119,000
For grants to driver's license agents to pay monthly lease and maintenance costs of photo identification equipment.
Subd. 2. Training Facility
The unobligated balance of the appropriation in Laws 1998, chapter 404, section 21, subdivision 2, for the Camp Ripley training facility, is canceled.
Sec. 5. TRADE AND ECONOMIC DEVELOPMENT 750,000
To the commissioner of trade and economic development for a grant to the Upper Minnesota Valley Regional Development Commission for the Minnesota River Tourism Initiative serving six rural Minnesota counties and multiple communities in west central Minnesota. The grant must be used for planning, predesign, and design of three staffed travel information centers.
Sec. 6. FINANCE 15,100,000
Trunk Highway Bond
Proceeds Account 100,000
General Fund 15,000,000
Subdivision 1. Bond Sale Expenses 100,000
This appropriation is from the bond proceeds account in the trunk highway fund for bond sale expenses under Minnesota Statutes, section 16A.641, subdivision 8.
Subd. 2. Transportation Revolving Loan Fund 15,000,000
For transfer to the highway account in the transportation revolving loan fund.
Sec. 7. [BOND SALE AUTHORIZATION.]
To provide the money appropriated in this act from the trunk highway bond proceeds fund, the commissioner of finance shall sell and issue bonds of the state in an amount up to $100,100,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested by the commissioner of transportation. The proceeds of the bonds, except accrued interest and any premium received on the sale of the bonds, must be credited to a bond proceeds account in the trunk highway fund.
Sec. 8. [COMMISSIONER OF TRANSPORTATION; RAMP METER STUDY.]
(a) Notwithstanding other law to the contrary, the commissioner shall order that all meters on access ramps to a freeway or expressway, as defined in Minnesota Statutes, section 160.02, display flashing yellow lights for a period of time determined by the commissioner.
This section does not prohibit temporary closure or other traffic flow restrictions of access ramps to a freeway or expressway in the interests of public safety.
(b) The commissioner shall study and report to the legislature by February 1, 2001, the traffic flow and highway safety results on expressways and freeways for the period of the study. The department shall gather and compile any relevant facts, comparisons, statistics, or other relevant data and report its findings of fact and conclusions.
Sec. 9. [REPORT; METRO MOBILITY.]
(a) The metropolitan council shall report to the chairs of the senate and house of representatives committees having jurisdiction over transportation policy and transportation finance on the future of the metro mobility paratransit system. The report must include options, alternatives, and strategies for:
(1) increasing the availability of metro mobility service to meet present and anticipated demand;
(2) integrating metro mobility service into the new and expanded transit services described in the council's regional transit master plan;
(3) integration of private taxi services to provide a more efficient pick up and delivery system, and potential savings from doing so; and
(4) changes in state or federal law, including, but not limited to, changes in fare structure and requirements, to increase effectiveness of the service.
(b) In conducting the study and preparing the report, the council shall consult with its transportation accessibility advisory council.
(c) The council shall submit the report by February 1, 2001.
Sec. 10. [PUBLIC SAFETY RADIO SYSTEM STUDY.]
Subdivision 1. [PLANNING COMMITTEE.] The commissioners of administration, transportation, and public safety shall convene a planning committee to report to the legislature on a plan for development of an 800 megahertz, statewide, shared public safety radio system. The planning committee shall provide a means for inclusion of input from representatives of local governments and major system user groups.
Subd. 2. [REPORT CONTENTS.] The committee shall review:
(1) current and future needs and capacities of radio systems in outstate areas;
(2) the potential for implementation of a multi-agency and multijurisdictional shared radio system;
(3) potential guidelines for governance and system participation by state and local units of government; and
(4) statutory changes required to implement a statewide, 800 megahertz, shared public safety radio system.
Subd. 3. [REVIEW CONSIDERATIONS.] In performing the duties under this section, the planning committee may consider:
(1) assessment of current uses, needs, and capacities, including growth and expansion capacities, by each local government and by each major user group;
(2) estimates of future needs by each local government and by each major user group;
(3) estimates by each local government and by each major user group of the anticipated level and timeline for utilizing the radio system;
(4) analysis of the expected costs of implementing the radio system; and
(5) proposed funding mechanisms, including options for allocating costs among local governments and user groups.
Subd. 4. [PUBLIC MEETINGS.] After completing its duties under subdivisions 2 and 3, the planning committee shall prepare a draft report to local governments and major user groups in all outstate areas. The draft report must also be made available to the public. After preparing and disseminating the draft report and before presenting the final report to the legislature, the planning committee shall meet with representatives of local governments and user groups in each department of public safety radio communication district to explain the report and seek comment.
Subd. 5. [REPORT.] By February 1, 2001, the commissioner of administration shall report to the legislature on the findings and recommendations of the planning committee. The report must also identify any changes in statutory authority and funding options necessary to provide for implementation of the statewide, 800 megahertz, shared, public safety radio system.
Sec. 11. [LIGHT RAIL; FEDERAL FUNDS.]
The commissioner of transportation may not apply to the federal government for any federal funds for light rail transit in the Hiawatha Avenue corridor other than federal funds that under federal law or regulation may only be used for transit capital projects. This section does not prohibit the commissioner from using federal funds that are identified in the 2001-2003 statewide transportation improvement program for the Hiawatha Avenue corridor highway and light rail project.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 12. Laws 1999, chapter 238, article 2, section 93, is amended to read:
Sec. 93. [EFFECTIVE DATE.]
Sections 21 and 22 are effective the day following final enactment, and are repealed on July 31, 2000.
Sections 2, 15, 32, 33, 35 to 67, 72, 74, 75, 77, and 85 are effective January 1, 2000. Sections 7 to 14 are effective
July 1, 2000. Section 27 is effective July 1, 1999, for Minnesota identification cards issued on and after that date.
Sections 4, 5, and 30 are effective July 1, 2001.
Sec. 13. Minnesota Statutes 1998, section 161.32, is amended by adding a subdivision to read:
Subd. 7. [APPROVAL AND PAYMENT OF SUPPLEMENTAL AGREEMENTS.] Notwithstanding any law to the contrary, when goods or services are provided to the commissioner under an agreement supplemental to a contract for work on a trunk highway, the commissioner or designee may approve the supplemental agreement. Payment of valid state obligations must be made within 30 days of approval of the work or submission by the contractor of an invoice indicating completion of work, whichever occurs later.
Sec. 14. Minnesota Statutes 1998, section 167.50, subdivision 2, is amended to read:
Subd. 2. [ISSUANCE AND SALE.] The bonds shall be issued and sold upon sealed competitive
bids after published notice. The bonds shall be issued and sold at the times and prices (not less than par and accrued
interest), in the form and denominations, bearing interest at the rate or rates, maturing on dates, with or without
option of prior redemption upon notice and at specified times and prices, payable at a bank or banks, within or
without the state, with provisions for registration, conversion, and exchange and for the issuance of temporary bonds
or notes in anticipation of the sale and delivery of definitive bonds, and in accordance with such further provisions,
as the commissioner of finance may determine, subject to the approval of the attorney general (but not subject to the
provisions of chapter 14, including 14.386). Each bond shall mature within 20 years from its date of issue and shall
be executed by the commissioner of finance and attested by the state treasurer under their official seals. The
signatures of these officers on the face of and any interest coupons appurtenant to any bond, and their seals may be
printed, lithographed, stamped, engraved, or otherwise reproduced thereon, provided that the signature of one of the
officers, or of an authorized representative of a corporate registrar or other agent designated by the commissioner
of finance to authenticate the bonds, shall be manually subscribed on the face of each bond.
Sec. 15. Minnesota Statutes 1999 Supplement, section 168.17, is amended to read:
168.17 [SUSPENSION OF REGISTRATION.]
(a) All registrations and issue of number plates shall be subject to amendment, suspension, modification or revocation by the registrar summarily for any violation of or neglect to comply with the provisions of this chapter or when the transferee fails to comply with section 168A.10, subdivision 2, within 30 days of the date of sale.
(b) The registrar may suspend the registration of a motor vehicle if the tax on the vehicle was paid by means of a dishonored check to a deputy motor vehicle registrar. The registrar may continue a suspension under this paragraph until the registrar is informed by the deputy motor vehicle registrar that the dishonored check has been paid in full.
(c) In any case where the proper registration of a motor vehicle is dependent upon procuring information entailing such delay as to unreasonably deprive the owner of the use of the motor vehicle, the registrar may issue a tax receipt and plates conditionally.
(d) In any case when revoking a registration for cause, the registrar shall have authority to demand the return of the number plates and registration certificates, and, if necessary, to seize the number plates issued for such registration.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 1998, section 168.27, subdivision 8, is amended to read:
Subd. 8. [EXEMPTIONS.] (1) (a) Salespeople and other employees of licensed dealers under
this section shall are not be required to obtain individual licenses.
(2) (b) Isolated or occasional sales or leases of new or used motor vehicles shall be
are exempt from the provisions of this section. A person who makes only isolated or occasional
sales or leases is not required to be licensed under this section, is not considered to be in the business of selling or
leasing motor vehicles, and does not qualify to
receive dealer plates under subdivision 16. "Isolated or occasional sales or leases" means: (i) (1)
the sale or lease of a motor vehicle with an actual cash value of $1,000 or less made by a charitable organization;
(ii) (2) the sale, purchase, or lease of not more than five motor vehicles in a 12-month period, other
than pioneer or classic motor vehicles as defined in section 168.10, subdivisions 1a and 1b, or (iii)
(3) sales by a licensed auctioneer selling motor vehicles at an auction if, in the ordinary course of the
auctioneer's business, the sale of motor vehicles is incidental to the sale of other real or personal property. For
purposes of this subdivision, a charitable organization means a nonprofit charitable organization that
qualifies for tax exemption under section 501(c)(3) of the Internal Revenue Code.
(c) A person whose sales of new and used motor vehicles consist solely of sales to political subdivisions and their agencies of vehicles used solely as firefighting equipment is not required to obtain a license under this section. The person may apply for and receive in-transit plates under subdivision 17 in the same manner as licensed motor vehicle dealers for the purpose of allowing firefighting equipment to be transported from the dealer's source of supply or other place of storage to the dealer's place of business, to another place of storage, or directly to the purchaser.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 17. Minnesota Statutes 1998, section 169.781, is amended by adding a subdivision to read:
Subd. 10. [EXEMPTION.] This section does not apply to a vehicle operated by a motor carrier of passengers, as defined in section 221.011, subdivision 48, if the vehicle has been inspected under section 221.0252, subdivision 3, paragraph (a), clause (2), within the previous 12 months.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 18. Minnesota Statutes 1999 Supplement, section 171.061, subdivision 4, is amended to read:
Subd. 4. [FEE; EQUIPMENT.] (a) The agent may charge and retain a filing fee of $3.50 for each application. Except as provided in paragraph (b), the fee shall cover all expenses involved in receiving, accepting, or forwarding to the department the applications and fees required under sections 171.02, subdivision 3; 171.06, subdivisions 2 and 2a; and 171.07, subdivisions 3 and 3a.
(b) An agent with photo identification equipment provided by the department before January 1, 1999, may
retain the photo identification equipment until the agent's appointment terminates. The department shall
maintain the photo identification equipment for these all agents appointed as of January 1,
2000. An agent appointed before January 1, 1999, who does not have photo identification equipment
provided by the department, and any new agent appointed after December 31, 1998, shall procure and maintain
photo identification equipment. Upon the retirement, resignation, death, or discontinuance of an existing agent,
and if a new agent is appointed in an existing office pursuant to Minnesota Rules, chapter 7404, and notwithstanding
the above or Minnesota Rules, part 7404.0400, the department shall provide and maintain photo identification
equipment without additional cost to a newly appointed agent in that office if the office was provided the equipment
by the department before January 1, 1999 2000. All photo identification equipment must be
compatible with standards established by the department.
(c) A filing fee retained by the agent employed by a county board must be paid into the county treasury and credited to the general revenue fund of the county. An agent who is not an employee of the county shall retain the filing fee in lieu of county employment or salary and is considered an independent contractor for pension purposes, coverage under the Minnesota state retirement system, or membership in the public employees retirement association.
(d) Before the end of the first working day following the final day of the reporting period established by the department, the agent must forward to the department all applications and fees collected during the reporting period except as provided in paragraph (c).
EFFECTIVE DATE: This section is effective retroactively from January 1, 2000.
Sec. 19. [174.55] [MAJOR TRANSPORTATION PROJECTS COMMISSION.]
Subdivision 1. [CREATION AND PURPOSE.] A major transportation projects commission is created to review and comment on proposed major transportation projects in which the department of transportation is involved.
Subd. 2. [COMPOSITION.] The major transportation projects commission is composed of the governor or the governor's designee; four citizen members appointed by the governor and serving at the pleasure of the governor; seven senators appointed by the subcommittee on committees of the committee on rules and administration, three of whom must not be members of the senate majority party; and seven members of the house of representatives appointed by the speaker, three of whom must not be members of the house majority party. The commissioner of transportation shall serve as a nonvoting member unless the commissioner is the governor's designee. The commission shall elect a chair from among its members. Nongovernment members of the commission shall receive compensation in accordance with section 15.059, subdivision 3.
Subd. 3. [DUTIES.] The major transportation projects commission shall review each report submitted under subdivision 4 and shall make comments on the report to the governor and legislature by September 30 of each year.
Subd. 4. [COMMISSIONER REPORT.] The commissioner of transportation shall report to the commission not later than July 15 of each year. The report must consist of a listing of candidate projects that meet the criteria of major transportation projects within the definition in subdivision 5, and a listing of proposed projects for study that the commissioner believes have the potential of being major transportation projects but do not have draft environmental impact statements. The report must include the commissioner's plan for funding and implementation of each project.
Subd. 5. [MAJOR TRANSPORTATION PROJECT.] A major transportation project is a project that meets each of the following criteria:
(1) involves the department of transportation;
(2) has a total cost of more than $5,000,000;
(3) is a critical element of the transportation system of its region and the state; and
(4) has a completed draft environmental impact statement.
Subd. 6. [CONSTRUCTION OF TRANSPORTATION PROJECTS.] The department may not construct a major transportation project without first submitting the project to the major transportation projects commission. Within any six-year period, the department may not construct a transportation project consisting of separate contiguous projects that do not individually qualify as major transportation projects, but which in their entirety would constitute a major transportation project, without first submitting the project to the major transportation projects commission.
EFFECTIVE DATE: This section is effective July 1, 2000, except that subdivision 6 is effective July 1, 2001.
Sec. 20. Minnesota Statutes 1999 Supplement, section 174.88, is amended to read:
174.88 [COMMUTER RAIL FUNDING.]
Subdivision 1. [FEDERAL FUND APPLICATIONS.] The commissioner, in cooperation with appropriate metropolitan planning organizations, may apply for funding from federal, state, regional, local, and private sources for commuter rail facility construction, operation, implementation, maintenance, and improvement.
Subd. 2. [EXPENDITURE OF STATE FUNDS.] The commissioner shall not spend any state funds for construction or equipment of commuter rail facilities unless the funds have been appropriated by law specifically for those purposes.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 21. Minnesota Statutes 1999 Supplement, section 221.0252, subdivision 7, is amended to read:
Subd. 7. [EXEMPTIONS FROM REGULATION.] Notwithstanding any other law, motor carriers of passengers
are exempt from sections 221.121; 221.122; 221.123; 221.132; 221.151; 221.161; and 221.171.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 22. Minnesota Statutes 1998, section 221.131, subdivision 4, is amended to read:
Subd. 4. [FLOATER CARD; FEE.] The department may issue to carriers subject to subdivision 2 or 3 special "floater" identification cards up to a maximum of five per motor carrier. Floater cards may be freely transferred between vehicles that have evidence of being inspected under section 221.0252, subdivision 3, paragraph (a), clause (2), within the previous 12 months, or have a current Commercial Vehicle Safety Alliance decal, and that are used under short-term leases by the motor carrier. The motor carrier shall pay a fee of $100 for each floater card issued.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 23. Minnesota Statutes 1998, section 221.132, is amended to read:
221.132 [PREPAID TEMPORARY VEHICLE IDENTIFICATION CARD.]
For special or extraordinary events, the commissioner may issue a prepaid temporary vehicle identification card to a permit or certificate holder subject to section 221.131, subdivision 2 or 3, for a fee of $5 per card. The card must be preprinted by the commissioner with the carrier's name, address, and permit or certificate number. The card may be used by the motor carrier to whom it is issued to identify a vehicle temporarily added to its fleet, if the vehicle has evidence of being inspected under section 221.0252, subdivision 3, paragraph (a), clause (2), within the previous 12 months, or has a current Commercial Vehicle Safety Alliance decal. The card must be executed by the motor carrier by dating and signing the card and describing the vehicle in which it will be carried. The identification card is valid for a period of ten days from the date the motor carrier places on the card when the card is executed. The card must be used within one year from the date of issuance by the commissioner. The card may not be used if the permit or certificate is not in full force and effect. The card may not be transferred. The commissioner may not refund the cost of unused prepaid temporary vehicle identification cards.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 24. Minnesota Statutes 1998, section 473.405, subdivision 4, is amended to read:
Subd. 4. [TRANSIT SYSTEMS.] The council may engineer, construct, equip, and operate transit and paratransit systems, projects, or any parts thereof, including road lanes or rights of way, terminal facilities, maintenance and garage facilities, ramps, parking areas, and any other facilities useful for or related to any public transit or paratransit system or project. The council may sell or lease naming rights with regard to light rail transit stations and apply revenues from sales or leases to light rail transit operating costs.
ARTICLE 2
TRUNK HIGHWAY FUND
Section 1. [PROHIBITION AGAINST APPROPRIATIONS FROM TRUNK HIGHWAY FUND.]
To ensure compliance with the Minnesota Constitution, article XIV, sections 2, 5, and 6, the commissioner
of finance, agency directors, and legislative commission personnel may not include in the biennial budget for fiscal
years 2002 and 2003, or in any budget thereafter, expenditures from the trunk highway fund for a nonhighway
purpose as jointly determined by the commissioner of finance and the attorney general. For purposes of this section, an expenditure for a nonhighway purpose is any expenditure not for construction, improvement, or maintenance of highways. At the time of submission of the biennial budget proposal to the legislature, the commissioner of finance and the attorney general shall report to the senate and house of representatives transportation committees concerning any expenditure that is proposed to be appropriated from the trunk highway fund, if that expenditure is similar to those reduced or eliminated in sections 5 to 20. The report must explain the highway purpose of the proposed expenditure.
Sec. 2. Minnesota Statutes 1999 Supplement, section 144E.29, is amended to read:
144E.29 [FEES.]
(a) The board shall charge the following fees:
(1) initial application for and renewal of an ambulance service license, $150;
(2) each ambulance operated by a licensee, $96. The licensee shall pay an additional $96 fee for the full licensing period or $8 per month for any fraction of the period for each ambulance added to the ambulance service during the licensing period;
(3) initial application for and renewal of approval for a training program, $100; and
(4) duplicate of an original license, certification, or approval, $25.
(b) With the exception of paragraph (a), clause (5), all fees are for a two-year period. All fees are nonrefundable.
(c) Fees collected by the board shall be deposited as nondedicated receipts in the trunk highway
general fund.
Sec. 3. Minnesota Statutes 1999 Supplement, section 144E.31, subdivision 3, is amended to read:
Subd. 3. [FINE.] (a) The board may order a fine concurrently with the issuance of a correction order, or after the licensee or training program has not corrected the violation within the time specified in the correction order.
(b) A licensee or training program that is ordered to pay a fine shall be notified of the order by certified mail. The notice shall be mailed to the address shown on the application or the last known address of the licensee or training program. The notice shall state the reasons the fine was ordered and shall inform the licensee or training program of the right to a contested case hearing under chapter 14.
(c) A licensee or training program may appeal the order to pay a fine by notifying the board by certified mail within 15 calendar days after receiving the order. A timely appeal shall stay payment of the fine until the board issues a final order.
(d) A licensee or training program shall pay the fine assessed on or before the payment date specified in the board's order. If a licensee or training program fails to fully comply with the order, the board shall suspend the license or cancel approval until there is full compliance with the order.
(e) Fines shall be assessed as follows:
(1) $150 for violation of section 144E.123;
(2) $400 for violation of sections 144E.06, 144E.07, 144E.101, 144E.103, 144E.121, 144E.125, 144E.265, 144E.285, and 144E.305;
(3) $750 for violation of rules adopted under section 144E.16, subdivision 4, clause (8); and
(4) $50 for violation of all other sections under this chapter or rules adopted under this chapter that are not specifically enumerated in clauses (1) to (3).
(f) Fines collected by the board shall be deposited as nondedicated receipts in the trunk highway
general fund.
Sec. 4. Minnesota Statutes 1998, section 161.20, subdivision 3, is amended to read:
Subd. 3. [APPROPRIATIONS.] The commissioner may expend trunk highway funds only for trunk highway purposes. Payment of expenses related to sales tax, bureau of criminal apprehension laboratory, office of tourism kiosks, Minnesota safety council, tort claims, driver education programs, emergency medical services board, and Mississippi River parkway commission do not further a highway purpose and do not aid in the construction, improvement, or maintenance of the highway system.
Sec. 5. Laws 1999, chapter 216, article 1, section 1, is amended to read:
Section 1. [CRIMINAL JUSTICE APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another fund named, to the agencies and for the purposes specified in this act, to be available for the fiscal years indicated for each purpose. The figures "1999," "2000," and "2001," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1999, June 30, 2000, or June 30, 2001, respectively.
SUMMARY BY FUND
1999 2000 2001 TOTAL
General $ 2,074,000 $ 547,845,000 $ 582,487,000$1,130,332,000
$ 584,143,000 $1,131,988,000
Special Revenue 8,258,000 7,902,000 16,160,000
Environmental 44,000 46,000 90,000
State Government
Special Revenue 7,000 7,000 14,000
Trunk Highway 1,626,0001,656,000 3,282,000
-0- 1,626,000
TOTAL $ 557,780,000 $ 592,098,000 $1,149,878,000
APPROPRIATIONS
Available for the Year
Ending June 30
2000 2001
Sec. 6. Laws 1999, chapter 216, article 1, section 7, subdivision 1, is amended to read:
Subdivision 1. Total Appropriation 44,595,000 41,848,000
2000 2001
General 42,398,000
39,607,000
41,263,000
Special Revenue 520,000 532,000
State Government
Special Revenue 7,000 7,000
Environmental 44,000 46,000
Trunk Highway 1,626,000
1,656,000 -0-
The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.
Sec. 7. Laws 1999, chapter 216, article 1, section 7, subdivision 3, is amended to read:
Subd. 3. Criminal Apprehension
General 23,327,000
23,080,000 24,736,000
Special Revenue 520,000 532,000
State Government
Special Revenue 7,000 7,000
Trunk Highway 1,626,000
1,656,000 -0-
$99,000 the first year and $99,000 the second year from the Bureau of Criminal Apprehension account in the special revenue fund are for grants to local officials for the cooperative investigation of cross-jurisdictional criminal activity. Any unencumbered balance remaining in the first year does not cancel but is available for the second year.
$421,000 the first year and $433,000 the second year from the Bureau of Criminal Apprehension account in the special revenue fund are for laboratory activities.
$5,000,000 the first year and $4,000,000 the second year are for the statewide criminal and juvenile justice data information system upgrade.
$210,000 the first year and $210,000 the second year are to be transferred to the commissioner of corrections for a statewide probation system component of the criminal justice information system. This appropriation must be included in the budget base for the 2002-2003 biennium.
$500,000 the first year and $55,000 the second year are for a lab information management system.
$344,000 the first year and $400,000 the second year are for laboratory supplies and equipment. This is a one-time appropriation.
$800,000 the second year is for start-up costs, including employee hiring and training, for the northern BCA satellite laboratory facility in the city of Bemidji, for which predesign money was appropriated in Laws 1998, chapter 404, section 13, subdivision 11.
$15,000 the first year is for the capitol security study described in article 5, section 13. This is a one-time appropriation.
$125,000 the second year is to expand DNA testing of predatory offenders.
Sec. 8. Laws 1999, chapter 223, article 1, section 1, is amended to read:
Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the agencies and for the purposes specified in this act, to be available for the fiscal years indicated for each purpose. The figures "2000" and "2001," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 2000, or June 30, 2001, respectively. The term "first year" means the fiscal year ending June 30, 2000, and "second year" means the fiscal year ending June 30, 2001.
SUMMARY BY FUND
1999 2000 2001 TOTAL
General $21,000
$224,507,000
$184,543,000
$409,071,000
$185,309,000 $409,837,000
Petroleum Tank
Cleanup 1,015,000 1,045,000 2,060,000
Environmental Fund 700,000 700,000 1,400,000
TANF 6,000,000 4,000,000 10,000,000
Trunk Highway
745,000
766,000
1,511,000
-0- 745,000
Workers' Compensation 22,217,000 22,439,000 44,656,000
Special Revenue 100,000 -0- 100,000
Workforce
Development Fund 17,993,000 12,557,000 30,550,000
TOTAL $21,000 $273,277,000 $226,050,000 $499,348,000
APPROPRIATIONS
Available for the Year
Ending June 30
2000 2001
Sec. 9. Laws 1999, chapter 223, article 1, section 2, subdivision 1, is amended to read:
Subdivision 1. Total Appropriation 56,880,000 46,056,000
General 42,985,000
32,590,000 33,356,000
Trunk Highway 745,000
766,000 -0-
TANF 1,500,000 1,500,000
Environmental
Fund 700,000 700,000
Workforce Development
Fund 10,950,000 10,500,000
The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.
Sec. 10. Laws 1999, chapter 223, article 1, section 2, subdivision 4, is amended to read:
Subd. 4. Tourism
10,805,000 10,910,000
General 10,060,000
10,144,000 10,910,000
Trunk Highway 745,000
766,000 -0-
To develop maximum private sector involvement in tourism, $3,500,000 the first year and $3,500,000 the second year of the amounts appropriated for marketing activities are contingent on receipt of an equal contribution from nonstate sources that have been certified by the commissioner. Up to one-half of the match may be given in in-kind contributions.
In order to maximize marketing grant benefits, the commissioner must give priority for joint venture marketing grants to organizations with year-round sustained tourism activities.
For programs and projects submitted, the commissioner must give priority to those that encompass two or more areas or that attract nonresident travelers to the state.
If an appropriation for either year for grants is not sufficient, the appropriation for the other year is available for it.
The commissioner may use grant dollars or the value of in-kind services to provide the state contribution for the partnership program.
Any unexpended money from general fund appropriations made under this subdivision does not cancel but must be placed in a special advertising account for use by the office of tourism to purchase additional media.
This appropriation may be used for a grant to Minnesota Festivals and Events Association for the following purposes:
(1) for a partnership with the University of Minnesota's tourism center to build the methodology for a low-cost economic impact model that will allow festival and event managers to conduct research independently in their own communities;
(2) to promote regional workshops to increase production value and professionalism for events in the state, increase event service and entertainment value for local residents, build community awareness of opportunities to generate new tourism, and assure production of high quality, safe, and meaningful tourism products that are in line with the vision, mission, and growth goals of individual towns and cities in Minnesota;
(3) for a partnership with the University of Minnesota's tourism center to enhance professionalism via its certified festival manager program, training event managers and volunteer staff to implement value-added festivals and events for visitors to the state;
(4) for a partnership with the Minnesota office of tourism to publish a pull-out minimagazine advertising the statewide festivals and events calendar for the year; and
(5) to expand the Minnesota Festivals and Events Association website, to provide travel planners with more festival and event intensive links to communities hosting such activities.
$250,000 in the first year is for a one-time grant for the purpose of the Upper Red Lake business loan program.
$829,000 the first year and $829,000 the second year are for the Minnesota film board. $329,000 of this appropriation in each year is available only upon receipt by the board of $1 in matching contributions of money or in-kind from nonstate sources for every $3 provided by this appropriation. Of this amount, $500,000 the first year and $500,000 the second year are for grants to the Minnesota film board for a film production jobs fund to stimulate feature film production in Minnesota. This appropriation is to reimburse film producers for two to five percent of documented wages which they paid to Minnesotans for film production after January 1, 1999.
$100,000 the first year is for a grant to promote tourism in the Mille Lacs area. This is a one-time appropriation and is not added to the agency's budget base.
$100,000 the first year is for a one-time grant to promote tourism in the areas near the northern border of Minnesota, including the Northwest Angle.
$37,000 the first year is for a grant to the Mississippi River parkway commission.
Sec. 11. Laws 1999, chapter 238, article 1, section 1, is amended to read:
Section 1. [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the agencies and for the purposes specified in this act, to be available for the fiscal years indicated for each purpose. The figures "1999," "2000," and "2001," where used in this act, mean that the appropriations listed under them are available for the year ending June 30, 1999, June 30, 2000, or June 30, 2001, respectively. If the figures are not used, the appropriations are available for the year ending June 30, 2000, or June 30, 2001, respectively. The term "first year" means the year ending June 30, 2000, and the term "second year" means the year ending 30, 2001. Appropriations for the year ending June 30, 1999, are in addition to appropriations made in previous years.
SUMMARY BY FUND
2000 2001 TOTAL
General
$ 85,231,000
$ 80,853,000
$166,084,000
$ 81,520,000 $166,751,000
Airports 19,386,000 19,469,000 38,855,000
C.S.A.H. 365,063,000 366,624,000 731,687,000
Highway User 15,480,000 15,575,000 31,055,000
M.S.A.S. 105,549,000 107,394,000 212,943,000
Special Revenue 947,000 965,000 1,912,000
Trunk Highway
1,044,984,000
1,056,111,000
2,101,095,000
1,055,444,000 2,100,428,000
TOTAL $1,636,640,000 $1,646,991,000 $3,283,631,000
APPROPRIATIONS
Available for the Year
Ending June 30
2000 2001
Sec. 12. Laws 1999, chapter 238, article 1, section 2, subdivision 12, is amended to read:
Subd. 12. Contingent Appropriation
The commissioner of transportation, with the approval of the
governor after consultation with the legislative advisory
commission under Minnesota Statutes, section 3.30, may transfer
all or part of the unappropriated balance in the trunk highway
fund to an appropriation (1) for trunk highway design,
construction, or inspection in order to take advantage of an
unanticipated receipt of income to the trunk highway fund,
or (2) for trunk highway maintenance in order to meet an
emergency, or (3) to pay tort or environmental claims.
The amount transferred is appropriated for the purpose of the
account to which it is transferred.
Sec. 13. Laws 1999, chapter 238, article 1, section 5, is amended to read:
Sec. 5. MINNESOTA SAFETY COUNCIL 67,000 67,000
2000 2001
Trunk Highway 67,000 -0-
General -0- 67,000
This appropriation is from the trunk highway fund.
Sec. 14. Laws 1999, chapter 238, article 1, section 7, is amended to read:
Sec. 7. TORT CLAIMS 600,000 600,000
2000 2001
Trunk Highway 600,000 -0-
General -0- 600,000
To be spent by the commissioner of finance.
This appropriation is from the trunk highway fund.
If the appropriation for either year is insufficient, the
appropriation for the other year is available for it.
The commissioner shall transfer amounts from this appropriation to other state agencies as required to pay tort claims.
Sec. 15. Laws 1999, chapter 241, article 10, section 5, subdivision 2, is amended to read:
Subd. 2. [TEACHING AND LEARNING PROGRAM.] (a) For the teaching and learning program in the department of children, families, and learning:
$9,979,000 . . . . . 2000
$9,926,000 . . . . . 2001
(b) Any balance the first year does not cancel but is available in the second year.
(c) $21,000 each the
first year
is from the
trunk highway fund.
(d) $673,000 in 2000 and $678,000 in 2001 is for the board of teaching.
(e) Notwithstanding Minnesota Statutes, section 15.53, subdivision 2, the commissioner of children, families, and learning may contract with a school district for a period no longer than five consecutive years to work in the development or implementation of the graduation rule. The commissioner may contract for services and expertise as necessary. The contracts are not subject to Minnesota Statutes, section 16B.06.
Sec. 16. Laws 1999, chapter 245, article 1, section 1, is amended to read:
Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or any other fund named, to the agencies and for the purposes specified in the following sections of this article, to be available for the fiscal years indicated for each purpose. The figures "2000" and "2001" where used in this article, mean that the appropriation or appropriations listed under them are available for the fiscal year ending June 30, 2000, or June 30, 2001, respectively. Where a dollar amount appears in parentheses, it means a reduction of an appropriation.
SUMMARY BY FUND
BIENNIAL
2000 2001 TOTAL
General
$2,650,812,000
$2,774,558,000
$5,425,370,000
$2,776,331,000 $5,427,143,000
State Government Special Revenue 36,424,000 36,103,000 72,527,000
Health Care Access 146,224,000 175,017,000 321,241,000
Trunk Highway
1,726,000
1,773,000
3,499,000
-0- 1,726,000
Lottery Prize 1,300,000 1,300,000 2,600,000
TOTAL $2,836,486,000 $2,988,751,000 $5,825,237,000
APPROPRIATIONS
Available for the Year
Ending June 30
2000 2001
Sec. 17. Laws 1999, chapter 245, article 1, section 6, is amended to read:
Sec. 6. EMERGENCY MEDICAL SERVICES BOARD 2,420,000 2,467,000
General 694,000
694,000 2,467,000
Trunk Highway 1,726,000
1,773,000 -0-
[COMPREHENSIVE ADVANCED LIFE SUPPORT (CALS).] Of the general fund appropriation, $108,000 each year is for the board to establish a comprehensive advanced life support educational program under Minnesota Statutes, section 144E.37.
[EMERGENCY MEDICAL SERVICES GRANTS.] Of the
appropriation from the trunk highway fund, $18,000 from
the trunk highway fund in fiscal year 2000 and $36,000
from the general fund in fiscal year 2001 is to the board
for grants to regional emergency medical services programs.
This The second year appropriation shall become
part of the base for the 2002-2003 biennium.
Sec. 18. Laws 1999, chapter 250, article 1, section 1, is amended to read:
Section 1. [STATE GOVERNMENT APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another fund named, to the agencies and for the purposes specified in this act, to be available for the fiscal years indicated for each purpose. The "1999," "2000," and "2001," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1999, June 30, 2000, or June 30, 2001, respectively.
SUMMARY BY FUND
BIENNIAL
2000 2001 TOTAL
General
$349,954,000
$308,497,000
$658,451,000
$308,536,000 $658,490,000
State Government Special Revenue 13,986,000 13,884,000 27,870,000
For 1999 - $465,000
Health Care Access 1,842,000 1,871,000 3,713,000
Environmental 236,000 242,000 478,000
Solid Waste Fund 660,000 670,000 1,330,000
Lottery Prize Fund 110,000 -0- 110,000
Highway User Tax Distribution 2,129,000 2,173,000 4,302,000
Trunk Highway
39,000
39,000
78,000
-0- 39,000
Workers' Compensation 7,024,000 6,959,000 13,983,000
TOTAL $376,420,000 $334,854,000 $711,274,000
For 1999 - $465,000
APPROPRIATIONS
Available for the Year
Ending June 30
2000 2001
Sec. 19. Laws 1999, chapter 250, article 1, section 2, subdivision 1, is amended to read:
Subdivision 1. Total Appropriation 58,340,000 63,117,000
General 58,151,000
62,928,000
$62,967,000
Health Care Access 150,000 150,000
Trunk Highway 39,000
39,000 -0-
The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.
Sec. 20. Laws 1999, chapter 250, article 1, section 2, subdivision 4, is amended to read:
Subd. 4. Legislative Coordinating Commission 13,841,000 14,924,000
General 13,652,000
14,735,000 14,774,000
Health Care Access 150,000 150,000
Trunk Highway 39,000
39,000 -0-
$5,600,000 the first year and $6,372,000 the second year are for the office of the revisor of statutes.
$1,184,000 the first year and $1,217,000 the second year are for the legislative reference library.
$4,963,000 the first year and $5,096,000 the second year are for the office of the legislative auditor.
The legislative commission on pensions and retirement shall study and report to the legislature by January 15, 2000, on the comparability of pension and other postretirement benefits between public sector and private sector employees. When comparing the benefits, the commission shall select comparable job classifications and salary ranges. The study must compare pension portability, initial monthly benefits, average annual benefit increases, employer and employee contribution rates, availability of early retirement incentives, administrative costs, and other factors as necessary to compare benefits."
Delete the title and insert:
"A bill for an act relating to transportation; appropriating money for transportation, public safety, and other purposes; modifying previous appropriations; providing for bonding for highways; requiring studies and reports; establishing working group to assess impact of DM&E rail line project; establishing major transportation projects commission; repealing sunset of provision authorizing certain lights on top of delivery vehicles; providing for approval of and payment under supplemental goods or services agreements of the commissioner of transportation; authorizing suspension of motor vehicle registration when tax is paid by dishonored check; exempting dealers in firefighting equipment from motor vehicle dealer licensing; providing for inspection of vehicles of motor carriers; providing for photo identification equipment for driver's license agents; restricting expenditures on commuter rail; restricting application for federal aid for Hiawatha Avenue light rail transit; modifying provisions relating to prepaid, temporary, vehicle identification cards for motor carrier vehicles; authorizing naming rights for light rail transit stations; restricting expenditures from trunk highway fund; amending Minnesota Statutes 1998, sections 161.20, subdivision 3; 161.32, by adding a subdivision; 167.50, subdivision 2; 168.27, subdivision 8; 169.781, by adding a subdivision; 221.131, subdivision 4; 221.132; and 473.405, subdivision 4; Minnesota Statutes 1999 Supplement, sections 144E.29; 144E.31, subdivision 3; 168.17; 171.061, subdivision 4; 174.88; and 221.0252, subdivision 7; Laws 1999, chapter 216, article 1, sections 1 and 7, subdivisions 1 and 3; chapter 223, article 1, sections 1 and 2, subdivisions 1 and 4; chapter 238, article 1, sections 1; 2, subdivision 12; 5; and 7; article 2, section 93; chapter 241, article 10, section 5, subdivision 2; chapter 245, article 1, sections 1 and 6; and chapter 250, article 1, sections 1 and 2, subdivisions 1 and 4; proposing coding for new law in Minnesota Statutes, chapter 174."
We request adoption of this report and repassage of the bill.
House Conferees: Carol L. Molnau, Michelle Rifenberg, Tom Workman, Stephen G. Wenzel and Bernard L. "Bernie" Lieder.
Senate Conferees: Dean E. Johnson, Carol Flynn, Mark Ourada, Claire A. Robling and Randy C. Kelly.
Molnau moved that the report of the Conference Committee on H. F. No. 2891 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
Leighton was excused between the hours of 12:55 p.m. and 2:10 p.m.
H. F. No. 2891, A bill for an act relating to transportation; appropriating money for state road construction, public transit, and other purposes; establishing an intergovernmental cooperative facilities loan fund; establishing a major transportation projects commission; restricting expenditures for commuter rail and light rail transit; canceling bonding authorization for light rail transit; directing a study of freeway ramp meters in the metropolitan area; providing for a grant to the University of Minnesota for design and engineering of personal rapid transit; directing a study of high-occupancy vehicle lane use by certain vehicles; providing for approval of and payment under supplemental goods or services agreements of the commissioner of transportation; authorizing suspension of motor vehicle registration when tax is paid by dishonored check; exempting dealers in firefighting equipment from motor vehicle dealer licensing; providing for commuter rail plan dispute resolution; providing for inspection of vehicles of motor carriers; requiring the budget for light rail transit to include cost of utility relocation; requiring a municipality to issue permits for a specific business or use that uses river transportation as a major mode of transportation once a special permit has been issued and an environmental assessment worksheet has been completed; expanding eligibility for replacement transit service program; requiring a report on metro mobility; establishing working group to assess impact of DM&E rail line project; requiring study and legislative report on statewide public safety radio system; clarifying a definition of state license and service fees; sunsetting a department fee and an account; amending Minnesota Statutes 1998, sections 16A.6701, subdivision 1; 161.32, by adding a subdivision; 168.27, subdivision 8; 168A.29, subdivision 1; 169.781, by adding a subdivision; 174.35; 216B.16, by adding a subdivision; 221.131, subdivision 4; 221.132; and 473.388, subdivision 2; Minnesota Statutes 1999 Supplement, sections 168.17; 174.88; 174.86, subdivision 2, and by adding a subdivision; and 221.0252, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters 161; 174; and 462; repealing Minnesota Statutes 1998, section 299A.70.
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 96 yeas and 35 nays as follows:
Those who voted in the affirmative were:
Abeler | Dorman | Huntley | Marko | Peterson | Swapinski | |
Abrams | Dorn | Jaros | McElroy | Pugh | Swenson | |
Anderson, I. | Erhardt | Jennings | Molnau | Rest | Sykora | |
Bakk | Finseth | Juhnke | Mulder | Rhodes | Tingelstad | |
Bishop | Fuller | Kalis | Mullery | Rifenberg | Tomassoni | |
Boudreau | Goodno | Kielkucki | Murphy | Rostberg | Trimble | |
Bradley | Gray | Knoblach | Ness | Rukavina | Tuma | |
Broecker | Gunther | Kubly | Nornes | Schumacher | Tunheim | |
Carlson | Haake | Kuisle | Opatz | Seagren | Vandeveer | |
Carruthers | Haas | Larson, D. | Osthoff | Seifert, J. | Wenzel | |
Cassell | Hackbarth | Leppik | Otremba | Seifert, M. | Westerberg | |
Clark, J. | Harder | Lieder | Ozment | Skoe | Westfall | |
Daggett | Hasskamp | Luther | Paulsen | Solberg | Westrom | |
Davids | Hilty | Mahoney | Pawlenty | Stanek | Winter | |
Dehler | Holsten | Mares | Paymar | Stang | Workman | |
Dempsey | Howes | Mariani | Pelowski | Storm | Spk. Sviggum | |
Those who voted in the negative were:
Anderson, B. | Entenza | Greiling | Koskinen | McGuire | Smith | |
Biernat | Erickson | Hausman | Krinkie | Milbert | Van Dellen | |
Buesgens | Folliard | Holberg | Larsen, P. | Olson | Wagenius | |
Chaudhary | Gerlach | Johnson | Lenczewski | Osskopp | Wejcman | |
Clark, K. | Gleason | Kahn | Lindner | Reuter | Wilkin | |
Dawkins | Greenfield | Kelliher | McCollum | Skoglund | ||
The bill was repassed, as amended by Conference, and its title agreed to.
McElroy, Storm and Gunther.
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 2489, A bill for an act relating to bicycles; authorizing local units of government to require purchasers of impounded bicycles to register them as a condition of the sale; amending Minnesota Statutes 1998, section 168C.13, by adding a subdivision.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:
H. F. No. 2516, A bill for an act relating to crime; amending the definition of harassment; amending Minnesota Statutes 1998, section 609.748, subdivisions 1, 3, and 4.
The Senate has appointed as such committee:
Senators Kelly, R. C.; Knutson and Spear.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:
H. F. No. 3312, A bill for an act relating to agriculture; changing the scope of the value-added agricultural product processing and marketing grant program; establishing a certification pilot program; changing meeting provisions and duties of the board of grain standards; changing certain fees; making technical changes to pesticide and fertilizer laws; clarifying the scope of certain regulation of wholesale produce dealers; updating certain food standards; simplifying certain language; providing for uniformity in meat and poultry inspection; changing certain reporting requirements; increasing the amount of livestock dealer bonds; clarifying status of certain grain buying transactions; changing certain grain storage provisions; changing the corporate and partnership farming law; amending Minnesota Statutes 1998, sections 17.101, subdivision 5; 17A.05, subdivision 2; 17B.07; 17B.12; 18C.005, subdivision 34, and by adding a subdivision; 18C.215, subdivisions 1, 2, and by adding a subdivision; 18C.411, subdivision 1; 18C.421, subdivision 1; 18D.201, subdivision 3; 27.01, subdivision 8; 27.19, subdivision 1; 31.101, as amended; 31.102, subdivision 1; 31.103, subdivision 1; 31.104; 31.632; 31.633, subdivision 1; 31.651; 31A.02, subdivisions 5, 6, 10, 13, and 14; 31A.03; 31A.05; 31A.06; 31A.07, subdivisions 1 and 2; 31A.08; 31A.10; 31A.13; 31A.16; 31A.17; 223.16, subdivision 5; 223.17, subdivision 5; 223.175; 232.21, by adding a subdivision; 232.23, subdivisions 1, 3, and 6; 500.24, subdivisions 3a, 3b, 4, and 5; and 500.245, subdivision 2; Minnesota Statutes 1999 Supplement, sections 17B.15, subdivision 1; 28A.075; 31A.01; 31A.15, subdivision 1; 31B.07, subdivision 3; 500.24, subdivisions 2 and 3; and 500.245, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 17.
The Senate has appointed as such committee:
Senators Sams, Murphy and Hottinger.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
S. F. No. 2796.
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
CONFERENCE COMMITTEE REPORT ON S. F. NO. 2796
A bill for an act relating to retirement; pension plan actuarial reporting; various public retirement plans; volunteer firefighter relief associations; Minneapolis firefighters relief association; modifying actuarial cost allocation by the legislative commission on pensions and retirement; changing the actuarial value of assets, actuarial assumptions and funding surplus recognition method; revising re-employed annuitant earnings limitations; adding certain prior correctional positions to correctional plan coverage; clarifying various former police and fire consolidation account merger provisions; authorizing certain optional annuity form elections by former consolidation account members; revising local correctional retirement plan membership eligibility; increasing local correctional retirement plan
member and employer contribution rates; authorizing the purchase of nonprofit community-based corporation teaching service; expanding investment options for employer matching contribution tax sheltered annuities; modifying various volunteer firefighter relief association benefit and administration provisions; modifying judicial pension provision; modifying the marriage duration requirement for certain Minneapolis firefighter relief association survivor benefits; creating additional Minneapolis police and firefighter relief association post retirement adjustment mechanisms; resolving various individual and small group pension problems; amending Minnesota Statutes 1998, sections 16A.055, subdivision 5; 69.773, subdivision 1; 122A.46, subdivision 1, and by adding a subdivision; 136F.45, subdivision 1a; 352.115, subdivision 10; 352.15, subdivision 1a; 352.91, subdivisions 3c, 3d, and by adding a subdivision; 352B.01, subdivision 3, and by adding a subdivision; 352D.02, subdivision 1; 352D.04, subdivision 2; 352D.05, subdivision 3; 352D.06; 352D.09, subdivision 5a; 353.01, subdivisions 2, 6, 11a, 28, 32, and by adding a subdivision; 353.15, subdivision 2; 353.27, subdivisions 4 and 12; 353.33, subdivisions 2 and 6; 353.34, subdivision 1; 353.37, by adding a subdivision; 353.64, subdivisions 2, 3, 4, and by adding a subdivision; 353.656, subdivisions 1 and 3; 353.71, subdivision 2; 353B.11, subdivision 3; 354.05, subdivisions 2 and 35; 354.091; 354.092, subdivision 2; 354.093; 354.094, subdivision 1; 354.10, subdivision 2; 354.35; 354.44, subdivision 5; 354.46, subdivision 2a; 354.47, subdivision 1; 354.48, subdivision 6; 354.49, subdivision 1; 354.52, subdivisions 3, 4, 4a, and 4b; 354.63, subdivision 2; 354A.31, subdivisions 3 and 3a; 354B.23, subdivision 5a; 354C.12, subdivision 1a; 354C.165; 356.215, subdivisions 1, 2, and 4d; 356.24, by adding a subdivision; 356.30, subdivision 1; 356A.01, subdivision 8; 356A.02; 356A.06, subdivision 4, and by adding a subdivision; 423B.01; 424A.001, subdivision 9; 424A.02, subdivisions 3, 7, 9, 13, and by adding a subdivision; 424A.04, subdivision 1; 424A.05, subdivision 3; 490.121, subdivision 4, and by adding a subdivision; 490.123, subdivisions 1a and 1b; and 490.124, subdivision 1; Minnesota Statutes 1999 Supplement, sections 3.85, subdivision 12; 69.021, subdivision 7; 136F.48; 352.1155, subdivisions 1 and 4; 353.01, subdivisions 2b and 10; 353.64, subdivision 1; 353E.02; 353E.03; 353F.02, subdivision 5; 354.445; 354.536, subdivision 1; 354A.101, subdivision 1; 356.215, subdivision 4g; 356.24, subdivisions 1 and 1b; and 423A.02, subdivisions 1b, 4 and 5; Laws 1965, chapter 705, section 1, subdivision 4, as amended; proposing coding for new law in Minnesota Statutes, chapters 69; 352; 353; 354; 354A; 356; and 423B; proposing coding for new law as Minnesota Statutes, chapters 352G; and 424B; repealing Minnesota Statutes 1998, section 353.024; 354.52, subdivision 2; and 424A.02, subdivision 11; Minnesota Statutes 1999 Supplement, sections 356.24, subdivision 1a; and 356.61.
May 5, 2000
The Honorable Allan H. Spear
President of the Senate
The Honorable Steve Sviggum
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 2796, report that we have agreed upon the items in dispute and recommend as follows:
That the House recede from its amendments and that S. F. No. 2796 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
ACTUARIAL ASSET VALUE CHANGE,
ACTUARIAL ASSUMPTION CHANGES,
ACTUARIAL METHOD CHANGES, AND
ACTUARIAL REPORTING COST ALLOCATION CHANGES
Section 1. Minnesota Statutes 1999 Supplement, section 3.85, subdivision 12, is amended to read:
Subd. 12. [ALLOCATION OF ACTUARIAL COST.] (a) The commission shall assess each retirement plan specified in subdivision 11, paragraph (b), its appropriate portion of the compensation paid to the actuary retained by the commission for the actuarial valuation calculations, quadrennial projection valuations, and quadrennial
experience studies. The total assessment is 100 percent of the amount of contract compensation for the actuarial
consulting firm retained by the commission for actuarial valuation calculations, including the any
public employees police and fire plan consolidation accounts of the public employees retirement association
established before March 2, 1999, for which the municipality declined merger under section 353.665, subdivision
1, or established after March 1, 1999, annual experience data collection and processing, and quadrennial experience
studies and quadrennial projection valuations.
The portion of the total assessment payable by each retirement system or pension plan must be determined as
follows:
(1) Each pension plan specified in subdivision 11, paragraph (b), clauses (1) to (14), must pay the following
indexed amount based on its total active, deferred, inactive, and benefit recipient membership:
up to 2,000 members, inclusive $2.55 per member
2,001 through 10,000 members $1.13 per member
over 10,000 members $0.11 per member
The amount specified is applicable for the assessment of the July 1, 1991, to June 30, 1992, fiscal year
actuarial compensation amounts. For the July 1, 1992, to June 30, 1993, fiscal year and subsequent fiscal year
actuarial compensation amounts, the amount specified must be increased at the same percentage increase rate as the
implicit price deflator for state and local government purchases of goods and services for the 12-month period ending
with the first quarter of the calendar year following the completion date for the actuarial valuation calculations, as
published by the federal Department of Commerce, and rounded upward to the nearest full cent.
(2) The total per-member portion of the allocation must be determined, and that total per-member amount
must be subtracted from the total amount for allocation. Of the remainder dollar amount, the following
per-retirement system and per-pension plan charges must be determined and the charges must be paid by the system
or plan:
(i) 37.87 percent is the total additional per-retirement system charge, of which one-seventh must be paid by
each retirement system specified in subdivision 11, paragraph (b), clauses (1), (2), (6), (7), (9), (10), and (11).
(ii) 62.13 percent is the total additional per-pension plan charge, of which one-fourteenth must be paid by each
pension plan specified in subdivision 11, paragraph (b), clauses (1) to (14) based on each plan's proportion
of the actuarial services required, as determined by the commission's retained actuary, to complete the actuarial
valuation calculations, annual experience data collection and processing, and quadrennial experience studies for all
plans.
(b) The assessment must be made within 30 days following the completion of the actuarial valuation
calculations and the experience analysis the end of the fiscal year and must be reported to the executive
director of the legislative commission on pensions and retirement and to the chief administrative officers of the
applicable retirement plans. The amount of the assessment is appropriated from the retirement fund applicable
to the retirement plan. Receipts from assessments must be transmitted to the executive director of the legislative
commission on pensions and retirement and must be deposited in the state treasury and credited to the general
fund.
Sec. 2. Minnesota Statutes 1998, section 16A.055, subdivision 5, is amended to read:
Subd. 5. [RETIREMENT FUND REPORTING.] (a) The commissioner may not require a public retirement fund to use financial or actuarial reporting practices or procedures different from those required by section 356.20 or 356.215.
(b) The commissioner may contract with the consulting actuary retained by the legislative commission on pensions and retirement for the preparation of quadrennial projection valuations as required under section 356.215, subdivisions 2 and 2a. The initial projection valuation under this paragraph, if any, is due on May 1, 2003, and subsequent projection valuations are due on May 1 each fourth year thereafter. The commissioner of finance shall assess the applicable statewide and major local retirement plan or plans the cost of the quadrennial projection valuation.
Sec. 3. Minnesota Statutes 1998, section 356.215, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) For the purposes of sections 3.85 and 356.20 to 356.23, each of the
following terms in the following paragraphs have the meaning given:.
(1) (b) "Actuarial valuation" means a set of calculations prepared by the actuary retained by the
legislative commission on pensions and retirement if so required under section 3.85, or otherwise, by an approved
actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit plan, according to the entry
age actuarial cost method and based upon stated assumptions including, but not limited to rates of interest, mortality,
salary increase, disability, withdrawal, and retirement and to determine the payment necessary to amortize over a
stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial valuation of the benefit
plan.
(2) (c) "Approved actuary" means a person who is regularly engaged in the business of providing
actuarial services and who has at least 15 years of service to major public employee pension or retirement funds or
who is a fellow in the society of actuaries.
(3) (d) "Entry age actuarial cost method" means an actuarial cost method under which the
actuarial present value of the projected benefits of each individual currently covered by the benefit plan and included
in the actuarial valuation is allocated on a level basis over the service of the individual if the benefit plan is governed
by section 69.773 or over the earnings of the individual if the benefit plan is governed by any other law between the
entry age and the assumed exit age, with the portion of this actuarial present value which is allocated to the valuation
year to be the normal cost and the portion of this actuarial present value not provided for at the valuation date by the
actuarial present value of future normal costs to be the actuarial accrued liability, with aggregation in the calculation
process to be the sum of the calculated result for each covered individual and with recognition given to any different
benefit formulas which may apply to various periods of service.
(4) (e) "Experience study" means a report providing experience data and an actuarial analysis
of the adequacy of the actuarial assumptions on which actuarial valuations are based.
(5) (f) "Current assets" means:
(1) for the July 1, 1999, actuarial valuation, the value of all assets at cost, including realized capital gains
or losses, plus one-third of any unrealized capital gains or losses.;
(2) for the July 1, 2000, actuarial valuation, the market value of all assets as of June 30, 2000, reduced by:
(i) 60 percent of the difference between the market value of all assets as of June 30, 1999, and the actuarial value of assets used in the July 1, 1999, actuarial valuation, and
(ii) 80 percent of the difference between the actual net change in the market value of assets between June 30, 1999, and June 30, 2000, and the computed increase in the market value of assets between June 30, 1999, and June 30, 2000, if the assets had increased at the percentage preretirement interest rate assumption used in the July 1, 1999, actuarial valuation;
(3) for the July 1, 2001, actuarial valuation, the market value of all assets as of June 30, 2001, reduced by:
(i) 30 percent of the difference between the market value of all assets as of June 30, 1999, and the actuarial value of assets used in the July 1, 1999, actuarial valuation;
(ii) 60 percent of the difference between the actual net change in the market value of assets between June 30, 1999, and June 30, 2000, and the computed increase in the market value of assets between June 30, 1999, and June 30, 2000, if the assets had increased at the percentage preretirement interest rate assumption used in the July 1, 1999, actuarial valuation; and
(iii) 80 percent of the difference between the actual net change in the market value of assets between June 30, 2000, and June 30, 2001, and the computed increase in the market value of assets between June 30, 2000, and June 30, 2001, if the assets had increased at the percentage preretirement interest rate assumption used in the July 1, 2000, actuarial valuation;
(4) for the July 1, 2002, actuarial valuation, the market value of all assets as of June 30, 2002, reduced by:
(i) ten percent of the difference between the market value of all assets as of June 30, 1999, and the actuarial value of assets used in the July 1, 1999, actuarial valuation;
(ii) 40 percent of the difference between the actual net change in the market value of assets between June 30, 1999, and June 30, 2000, and the computed increase in the market value of assets between June 30, 1999, and June 30, 2000, if the assets had increased at the percentage preretirement interest rate assumption used in the July 1, 1999, actuarial valuation;
(iii) 60 percent of the difference between the actual net change in the market value of assets between June 30, 2000, and June 30, 2001, and the computed increase in the market value of assets between June 30, 2000, and June 30, 2001, if the assets had increased at the percentage preretirement interest rate assumption used in the July 1, 2000, actuarial valuation; and
(iv) 80 percent of the difference between the actual net change in the market value of assets between June 30, 2001, and June 30, 2002, and the computed increase in the market value of assets between June 30, 2001, and June 30, 2002, if the assets had increased at the percentage preretirement interest rate assumption used in the July 1, 2001, actuarial valuation; or
(5) for any actuarial valuation after July 1, 2002, the market value of all assets as of the preceding June 30, reduced by:
(i) 20 percent of the difference between the actual net change in the market value of assets between the June 30 that occurred three years earlier and the June 30 that occurred four years earlier and the computed increase in the market value of assets over that fiscal year period if the assets had increased at the percentage preretirement interest rate assumption used in the actuarial valuation for the July 1 that occurred four years earlier;
(ii) 40 percent of the difference between the actual net change in the market value of assets between the June 30 that occurred two years earlier and the June 30 that occurred three years earlier and the computed increase in the market value of assets over that fiscal year period if the assets had increased at the percentage preretirement interest rate assumption used in the actuarial valuation for the July 1 that occurred three years earlier;
(iii) 60 percent of the difference between the actual net change in the market value of assets between the June 30 that occurred one year earlier and the June 30 that occurred two years earlier and the computed increase in the market value of assets over that fiscal year period if the assets had increased at the percentage preretirement interest rate assumption used in the actuarial valuation for the July 1 that occurred two years earlier; and
(iv) 80 percent of the difference between the actual net change in the market value of assets between the immediately prior June 30 and the June 30 that occurred one year earlier and the computed increase in the market value of assets over that fiscal year period if the assets had increased at the percentage preretirement interest rate assumption used in the actuarial valuation for the July 1 that occurred one year earlier.
(6) (g) "Unfunded actuarial accrued liability" means the total current and expected future benefit
obligations, reduced by the sum of current assets and the present value of future normal costs.
(7) (h) "Pension benefit obligation" means the actuarial present value of credited projected
benefits, determined as the actuarial present value of benefits estimated to be payable in the future as a result of
employee service attributing an equal benefit amount, including the effect of projected salary increases and any step
rate benefit accrual rate differences, to each year of credited and expected future employee service.
Sec. 4. Minnesota Statutes 1998, section 356.215, subdivision 2, is amended to read:
Subd. 2. [REQUIREMENTS.] (a) It is the policy of the legislature that it is necessary and appropriate to
determine annually the financial status of tax supported retirement and pension plans for public employees. To
achieve this goal,:
(1) the legislative commission on pensions and retirement shall have prepared by the actuary retained
by the commission annual actuarial valuations of the retirement plans enumerated in section 3.85, subdivision 11,
paragraph (b), and quadrennial experience studies of the retirement plans enumerated in section 3.85,
subdivision 11, paragraph (b), clauses (1), (2), and (7),; and
(2) the commissioner of finance may have prepared by the actuary retained by the commission, two years
after each set of quadrennial experience studies, quadrennial projection valuations of at least one of the retirement
plans enumerated in section 3.85, subdivision 11, paragraph (b), for which it the commissioner
determines that the analysis may be beneficial.
(b) The governing or managing board or administrative officials of each public pension and retirement fund or plan enumerated in section 356.20, subdivision 2, clauses (9), (10), and (12), shall have prepared by an approved actuary annual actuarial valuations of their respective funds as provided in this section. This requirement also applies to any fund that is the successor to any organization enumerated in section 356.20, subdivision 2, or to the governing or managing board or administrative officials of any newly formed retirement fund or association operating under the control or supervision of any public employee group, governmental unit, or institution receiving a portion of its support through legislative appropriations, and any local police or fire fund coming within the provisions of section 356.216.
(b) Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] A quadrennial projection
valuation required under paragraph (a) subdivision 2 is intended to serve as an additional analytical
tool with which policy makers may assess the future funding status of public plans through forecasting and testing
various potential outcomes over time if certain plan assumptions or valuation methods were to be modified. In
consultation with the executive director of the legislative commission on pensions and retirement, the
retirement fund directors, the state economist, the state demographer, the commissioner of finance, and the
commissioner of employee relations, the actuary retained by the legislative commission on pensions and retirement
shall perform the quadrennial projection valuations on behalf of the commissioner of finance, testing future
implications for plan funding by modifying assumptions and methods currently in place. The commission-retained
actuary shall provide advice to the commission commissioner as to the periods over which such
projections should be made, the nature and scope of the scenarios to be analyzed, and the measures of funding status
to be employed, and shall report the results of these analyses in the same manner as for quadrennial experience
studies.
Sec. 5. Minnesota Statutes 1998, section 356.215, subdivision 4d, is amended to read:
Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The actuarial valuation must use the applicable following preretirement interest assumption and the applicable following postretirement interest assumption:
preretirement postretirement
interest rate interest rate
plan assumption assumption
general state employees retirement plan 8.5% 5.0 6.0%
correctional state employees retirement plan 8.5 5.0 6.0
state patrol retirement plan 8.5 5.0 6.0
legislators retirement plan 8.5 5.0 6.0
elective state officers retirement plan 8.5 5.0 6.0
judges retirement plan 8.5 5.0 6.0
general public employees retirement plan 8.5 5.0 6.0
public employees police and fire retirement plan 8.5 5.0 6.0
local government correctional service
retirement plan 8.5 5.0 6.0
teachers retirement plan 8.5 5.0 6.0
Minneapolis employees retirement plan 6.0 5.0
Duluth teachers retirement plan 8.5 8.5
Minneapolis teachers retirement plan 8.5 8.5
St. Paul teachers retirement plan 8.5 7.5 8.5
Minneapolis police relief association 6.0 6.0
other local police relief associations 5.0 5.0
Minneapolis fire department relief association 6.0 6.0
other local salaried firefighter relief associations 5.0 5.0
local monthly benefit volunteer firefighter
relief associations 5.0 5.0
(b) The actuarial valuation must use the applicable following single rate future salary increase assumption or the applicable following graded rate future salary increase assumption:
(1) single rate future salary increase assumption
future salary
plan increase assumption
legislators retirement plan 5.0%
elective state officers retirement plan 5.0
judges retirement plan 5.0
Minneapolis employees retirement plan 4.0
Minneapolis police relief association 4.0
other local police relief associations 3.5
Minneapolis fire department relief association 4.0
other local salaried firefighter relief associations 3.5
(2) modified single rate future salary increase assumption
future salary
plan increase assumption
Minneapolis employees prior calendar year amount
retirement plan increased by 1.0198 percent
to prior fiscal year date
and by 4.0 percent annually
for each future year
(3) select and ultimate future salary increase assumption or graded rate future salary increase assumption
future salary
plan increase assumption
general state employees select calculation and
retirement plan assumption A
correctional state employees
retirement plan assumption A H
state patrol retirement plan assumption A H
general public employees select calculation and
public employees police and fire
fund retirement plan assumption C
local government correctional service
retirement plan assumption C H
teachers retirement plan assumption D
Duluth teachers retirement plan assumption E
Minneapolis teachers retirement plan assumption F
St. Paul teachers retirement plan assumption G
select calculation:
during the ten-year select period, 0.2 percent is multiplied by the result of ten minus T, where T is the number of completed years of service, and is added to the applicable future salary increase assumption.
future salary increase assumption:
age A B C D E F G H
16 7.2500% 8.71% 11.50% 7.25% 8.00%
7.50% 7.25%
6.95 6.95 8.20 7.7500
17 7.2500 8.71 11.50 7.25 8.00 7.50 7.25
6.90 6.90 8.15 7.7500
18 7.2500 8.70 11.50 7.25 8.00 7.50
7.25
6.85 6.85 8.10 7.7500
19 7.2500 8.70 11.50 7.25 8.00 7.50
7.25
6.80 6.80 8.05 7.7500
20 7.2500 7.70 11.50 7.25 8.00 7.50
7.25
6.75 6.75 8.00 7.7500
21 7.1454 7.70 11.50 7.25 8.00 7.50
7.25
6.70 6.70 7.95 7.1454
22 7.1094 7.70 11.00 7.25 8.00 7.50
7.25
6.65 6.65 7.90 7.0725
24 7.0363 7.70 10.00 7.15 7.80 7.30
7.20
6.66 6.55 7.80 7.0363
25 7.0000 7.60 9.50 7.10 7.70 7.20
7.15
6.50 6.50 7.75 7.0000
26 7.0000 7.51 9.20 7.05 7.60 7.10 7.10
6.45 6.45 7.70 7.0000
27 7.0000 7.39 8.90 7.00 7.50 7.00
7.05
6.40 6.40 7.65 7.0000
28 7.0000 7.30 8.60 7.00 7.40 6.90
7.00
6.35 6.35 7.60 7.0000
29 7.0000 7.20 8.30 7.00 7.30 6.80 6.95
6.30 6.30 7.55 7.0000
30 7.0000 7.20 8.00 7.00 7.20 6.70
6.90
6.25 6.30 7.50 7.0000
31 7.0000 7.10 7.80 7.00 7.10 6.60
6.85
6.20 6.25 7.45 7.0000
32 7.0000 7.10 7.60 7.00 7.00 6.50
6.80
6.15 6.21 7.40 7.0000
33 7.0000 7.00 7.40 7.00 6.90 6.40 6.75
34 7.0000 7.00 7.20 7.00 6.80 6.30
6.70
6.05 6.09 7.10 7.0000
35 7.0000 6.90 7.00 7.00 6.70 6.20
6.65
6.00 6.05 7.0000
36 6.9019 6.80 6.80 7.00 6.60 6.10
6.60
6.95 6.01 6.85 6.9019
37 6.8074 6.70 6.60 7.00 6.50 6.00
6.55
5.90 5.97 6.70 6.8074
38 6.7125 6.60 6.40 6.90 6.40 5.90
6.50
5.85 5.93 6.55 6.7125
39 6.6054 6.50 6.20 6.80 6.30 5.80
6.40
5.80 5.89 6.40 6.6054
40 6.5000 6.40 6.00 6.70 6.20 5.70
6.30
5.75 5.85 6.25 6.5000
41 6.3540 6.30 5.90 6.60 6.10 5.60
6.20
5.70 5.81 6.10 6.3540
42 6.2087 6.30 5.80 6.50 6.00 5.50
6.10
5.65 5.77 5.95 6.2087
43 6.0622 6.30 5.70 6.35 5.90 5.45
6.00
5.60 5.73 5.80 6.0622
44 5.9048 6.20 5.60 6.20 5.80 5.40
5.90
5.55 5.69 5.65 5.9048
45 5.7500 6.20 5.50 6.05 5.70 5.35
5.80
5.50 5.65 5.50 5.7500
46 5.6940 6.09 5.45 5.90 5.60 5.30
5.70
5.45 5.62 5.45 5.6940
47 5.6375 6.00 5.40 5.75 5.50 5.25
5.65
5.40 5.59 5.40 5.6375
48 5.5822 5.90 5.35 5.70 5.45 5.20
5.60
5.35 5.56 5.35 5.5822
49 5.5405 5.80 5.30 5.65 5.40 5.15
5.55
5.30 5.53 5.30 5.5404
50 5.5000 5.70 5.25 5.60 5.35 5.10
5.50
5.25 5.50 5.25 5.5000
51 5.4384 5.70 5.25 5.55 5.30 5.05
5.45
5.20 5.45 5.20 5.4384
52 5.3776 5.70 5.25 5.50 5.25 5.00 5.40
5.15 5.40 5.15 5.3776
53 5.3167 5.70 5.25 5.45 5.25 5.00
5.35
5.10 5.35 5.10 5.3167
54 5.2826 5.70 5.25 5.40 5.25 5.00
5.30
5.05 5.30 5.05 5.2826
55 5.2500 5.70 5.25 5.35 5.25 5.00
5.25
5.00 5.25 5.00 5.2500
56 5.2500 5.70 5.25 5.30 5.25 5.00
5.25
5.00 5.20 5.00 5.2500
57 5.2500 5.70 5.25 5.25 5.25
5.00 5.25
5.00 5.15 5.00 5.2500
58 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
5.00 5.10 5.00 5.2500
59 5.2500 5.70 5.25 5.25 5.25 5.00
5.25
5.00 5.05 5.00 5.2500
60 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
61 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
62 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
63 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
64 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
65 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
66 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
67 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
68 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
69 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
70 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
71 5.00 5.00 5.00
(c) The actuarial valuation must use the applicable following payroll growth assumption for calculating the amortization requirement for the unfunded actuarial accrued liability where the amortization retirement is calculated as a level percentage of an increasing payroll:
payroll growth
plan assumption
general state employees retirement plan 5.00%
correctional state employees retirement plan 5.00
state patrol retirement plan 5.00
legislators retirement plan 5.00
elective state officers retirement plan 5.00
judges retirement plan 5.00
general public employees retirement plan 6.00
public employees police and fire retirement plan 6.00
local government correctional service retirement plan 6.00
teachers retirement plan 5.00
Duluth teachers retirement plan 5.00
Minneapolis teachers retirement plan 5.00
St. Paul teachers retirement plan 5.00
Sec. 6. Minnesota Statutes 1999 Supplement, section 356.215, subdivision 4g, is amended to read:
Subd. 4g. [AMORTIZATION CONTRIBUTIONS.] (a) In addition to the exhibit indicating the level normal cost, the actuarial valuation must contain an exhibit indicating the additional annual contribution sufficient to amortize the unfunded actuarial accrued liability. For funds governed by chapters 3A, 352, 352B, 352C, 353, 354, 354A, and 490, the additional contribution must be calculated on a level percentage of covered payroll basis by the established date for full funding in effect when the valuation is prepared. For funds governed by chapter 3A, sections 352.90 through 352.951, chapters 352B, 352C, sections 353.63 through 353.68, and chapters 353C, 354A, and 490, the level percent additional contribution must be calculated assuming annual payroll growth of 6.5 percent. For funds governed by sections 352.01 through 352.86 and chapter 354, the level percent additional contribution must be calculated assuming an annual payroll growth of five percent. For the fund governed by sections 353.01 through 353.46, the level percent additional contribution must be calculated assuming an annual payroll growth of six percent. For all other funds, the additional annual contribution must be calculated on a level annual dollar amount basis.
(b) For any fund other than the Minneapolis employees retirement fund, after the first actuarial valuation date occurring after June 1, 1989, if there has not been a change in the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, which change or changes by themselves without inclusion of any other items of increase or decrease produce a net increase in the unfunded actuarial accrued liability of the fund, the established date for full funding for the first actuarial valuation made after June 1, 1989, and each successive actuarial valuation is the first actuarial valuation date occurring after June 1, 2020.
(c) For any fund or plan other than the Minneapolis employees retirement fund, after the first actuarial valuation date occurring after June 1, 1989, if there has been a change in any or all of the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, and the change or changes, by themselves and without inclusion of any other items of increase or decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the established date for full funding must be determined using the following procedure:
(i) the unfunded actuarial accrued liability of the fund must be determined in accordance with the plan provisions governing annuities and retirement benefits and the actuarial assumptions in effect before an applicable change;
(ii) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the unfunded actuarial accrued liability amount determined under item (i) by the established date for full funding in effect before the change must be calculated using the interest assumption specified in subdivision 4d in effect before the change;
(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance with any new plan provisions governing annuities and benefits payable from the fund and any new actuarial assumptions and the remaining plan provisions governing annuities and benefits payable from the fund and actuarial assumptions in effect before the change;
(iv) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the difference between the unfunded actuarial accrued liability amount calculated under item (i) and the unfunded actuarial accrued liability amount calculated under item (iii) over a period of 30 years from the end of the plan year in which the applicable change is effective must be calculated using the applicable interest assumption specified in subdivision 4d in effect after any applicable change;
(v) the level annual dollar or level percentage amortization contribution under item (iv) must be added to the level annual dollar amortization contribution or level percentage calculated under item (ii);
(vi) the period in which the unfunded actuarial accrued liability amount determined in item (iii) is amortized by the total level annual dollar or level percentage amortization contribution computed under item (v) must be calculated using the interest assumption specified in subdivision 4d in effect after any applicable change, rounded to the nearest integral number of years, but not to exceed 30 years from the end of the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and not to be less than the period of years beginning in the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and ending by the date for full funding in effect before the change; and
(vii) the period determined under item (vi) must be added to the date as of which the actuarial valuation was prepared and the date obtained is the new established date for full funding.
(d) For the Minneapolis employees retirement fund, the established date for full funding is June 30, 2020.
(e) For the following retirement plans for which the annual actuarial valuation indicates an
excess of valuation assets over the actuarial accrued liability, the valuation assets in excess of the actuarial accrued
liability must be recognized in the following manner:
(1) the public employees retirement association police and fire plan, the valuation assets in excess of the
actuarial accrued liability serve to reduce as a reduction in the current contribution requirements by
an amount equal to the amortization of the excess expressed as a level percentage of pay over a 30-year period
beginning anew with each annual actuarial valuation of the plan; and
(2) the correctional employees retirement plan of the Minnesota state retirement system, and the state patrol
retirement plan, an excess of valuation assets over actuarial accrued liability must be amortized in the same manner
over the same period as an unfunded actuarial accrued liability but must serve to reduce the required contribution
instead of increasing it.
Sec. 7. [EFFECTIVE DATE.]
(a) Section 1 is effective for actuarial valuation costs incurred on or after July 1, 2000.
(b) Sections 2 to 6 are effective on June 30, 2000, for actuarial valuations on or after that date.
ARTICLE 2
REEMPLOYED ANNUITANT EARNINGS LIMITATION
REVISIONS
Section 1. Minnesota Statutes 1999 Supplement, section 136F.48, is amended to read:
136F.48 [EMPLOYER-PAID HEALTH INSURANCE.]
(a) This section applies to a person who:
(1) retires from the Minnesota state colleges and universities system with at least ten years of combined service credit in a system under the jurisdiction of the board of trustees of the Minnesota state colleges and universities;
(2) was employed on a full-time basis immediately preceding retirement as a faculty member or as an unclassified administrator in the Minnesota state colleges and universities system;
(3) begins drawing a retirement benefit from the individual retirement account plan or an annuity from the teachers retirement association, from the general state employees retirement plan or the unclassified state employees retirement program of the Minnesota state retirement system, or from a first class city teacher retirement plan; and
(4) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the system
from which the person retired under an agreement in which the person may not earn a salary of more than
$35,000 in a calendar year from employment after retirement in the system from which the person retired.
(b) Initial participation, the amount of time worked, and the duration of participation under this section must be mutually agreed upon by the president of the institution where the person returns to work and the employee. The president may require up to one-year notice of intent to participate in the program as a condition of participation under this section. The president shall determine the time of year the employee shall work. The employer or the president may not require a person to waive any rights under a collective bargaining agreement as a condition of participation under this section.
(c) For a person eligible under paragraphs (a) and (b), the employing board shall make the same employer contribution for hospital, medical, and dental benefits as would be made if the person were employed full time.
(d) For work under paragraph (a), a person must receive a percentage of the person's salary at the time of retirement that is equal to the percentage of time the person works compared to full-time work.
(e) If a collective bargaining agreement covering a person provides for an early retirement incentive that is based on age, the incentive provided to the person must be based on the person's age at the time employment under this section ends. However, the salary used to determine the amount of the incentive must be the salary that would have been paid if the person had been employed full time for the year immediately preceding the time employment under this section ends.
(f) A person who returns to work under this section is a member of the appropriate bargaining unit and is covered by the appropriate collective bargaining contract. Except as provided in this section, the person's coverage is subject to any part of the contract limiting rights of part-time employees.
Sec. 2. Minnesota Statutes 1998, section 352.115, subdivision 10, is amended to read:
Subd. 10. [REEMPLOYMENT OF ANNUITANT.] (a) If any retired employee again becomes entitled to receive salary or wages from the state, or any employer who employs state employees as that term is defined in section 352.01, subdivision 2, other than salary or wages received as a temporary employee of the legislature during a legislative session, the annuity or retirement allowance shall cease when the retired employee has earned an amount equal to the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal old age, survivors, and disability insurance program as set by the secretary of health and human services under United States Code, title 42, section 403, in any calendar year. If the retired employee has not yet reached the minimum age for the receipt of social security benefits, the maximum earnings for the retired employee shall be equal to the annual maximum earnings allowable for the minimum age for the receipt of social security benefits.
(b) The balance of the annual retirement annuity after cessation must be handled or disposed of as provided in section 356.58.
(c) The annuity must be resumed when state service ends, or, if the retired employee is still employed
at the beginning of the next calendar year, at the beginning of that calendar year, and payment must again end when
the retired employee has earned the applicable reemployment earnings maximum specified in this subdivision.
No payroll deductions for the retirement fund shall be made from the earnings of a reemployed retired
employee. If the retired employee is granted a sick leave without pay, but not otherwise, the annuity or
retirement allowance must be resumed during the period of sick leave.
(d) No payroll deductions for the retirement fund may be made from the earnings of a reemployed retired employee.
(e) No change shall be made in the monthly amount of an annuity or retirement allowance because of the reemployment of an annuitant.
Sec. 3. Minnesota Statutes 1999 Supplement, section 352.1155, subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY.] Except as indicated in subdivision 4, the annuity reduction provisions of section 352.115, subdivision 10, do not apply to a person who:
(1) retires from the Minnesota state colleges and universities system with at least ten years of combined service credit in a system under the jurisdiction of the board of trustees of the Minnesota state colleges and universities;
(2) was employed on a full-time basis immediately preceding retirement as a faculty member or as an unclassified administrator in that system;
(3) begins drawing an annuity from the general state employees retirement plan of the Minnesota state retirement system; and
(4) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the system
from which the person retired under an agreement in which the person may not earn a salary of more than
$35,000 $46,000 in a calendar year from employment after retirement in the system from which
the person retired.
Sec. 4. Minnesota Statutes 1999 Supplement, section 352.1155, subdivision 4, is amended to read:
Subd. 4. [EXEMPTION LIMIT.] For a person eligible under this section who earns more than $35,000
$46,000 in a calendar year from reemployment in the Minnesota state colleges and universities system
following retirement, the annuity reduction provisions of section 352.115, subdivision 10, apply only to income over
$35,000 $46,000.
Sec. 5. Minnesota Statutes 1998, section 353.37, is amended by adding a subdivision to read:
Subd. 3a. [DISPOSITION OF SUSPENSION OR REDUCTION AMOUNT.] The balance of the annual retirement annuity after suspension or the amount of the retirement annuity reduction must be handled or disposed of as provided in section 356.58.
Sec. 6. Minnesota Statutes 1998, section 354.44, subdivision 5, is amended to read:
Subd. 5. [RESUMPTION OF TEACHING SERVICE AFTER RETIREMENT.] (a) Any person who retired under the provisions of this chapter and has thereafter resumed teaching in any employer unit to which this chapter applies is eligible to continue to receive payments in accordance with the annuity except that annuity payments must be reduced during the calendar year immediately following any calendar year in which the person's income from the teaching service is in an amount greater than the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal old age, survivors and disability insurance program as set by the secretary of health and human services under United States Code, title 42, section 403. The amount of the reduction must be one-half of the amount in excess of the applicable reemployment income maximum specified in this subdivision and must be deducted from the annuity payable for the calendar year immediately following the calendar year in which the excess amount was earned. If the person has not yet reached the minimum age for the receipt of social security benefits, the maximum earnings for the person must be equal to the annual maximum earnings allowable for the minimum age for the receipt of social security benefits.
(b) If the person is retired for only a fractional part of the calendar year during the initial year of retirement, the maximum reemployment income specified in this subdivision must be prorated for that calendar year.
(c) After a person has reached the age of 70, no reemployment income maximum is applicable regardless of the amount of income.
(d) The amount of the retirement annuity reduction must be handled or disposed of as provided in section 356.58.
(e) For the purpose of this subdivision, income from teaching service includes, but is not limited to:
(a) (1) all income for services performed as a consultant or an independent contractor for an
employer unit covered by the provisions of this chapter; and
(b) (2) the greater of either the income received or an amount based on the rate paid with respect
to an administrative position, consultant, or independent contractor in an employer unit with approximately the same
number of pupils and at the same level as the position occupied by the person who resumes teaching service.
Sec. 7. Minnesota Statutes 1999 Supplement, section 354.445, is amended to read:
354.445 [NO ANNUITY REDUCTION.]
(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply to a person who:
(1) retires from the Minnesota state colleges and universities system with at least ten years of combined service credit in a system under the jurisdiction of the board of trustees of the Minnesota state colleges and universities;
(2) was employed on a full-time basis immediately preceding retirement as a faculty member or as an unclassified administrator in that system;
(3) begins drawing an annuity from the teachers retirement association; and
(4) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the system
from which the person retired under an agreement in which the person may not earn a salary of more than
$35,000 $46,000 in a calendar year from employment after retirement in the system from which
the person retired.
(b) Initial participation, the amount of time worked, and the duration of participation under this section must be mutually agreed upon by the president of the institution where the person returns to work and the employee. The president may require up to one-year notice of intent to participate in the program as a condition of participation under this section. The president shall determine the time of year the employee shall work. The employer or the president may not require a person to waive any rights under a collective bargaining agreement as a condition of participation under this section.
(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and (b) may not, based on employment to which the waiver in this section applies, earn further service credit in a Minnesota public defined benefit plan and is not eligible to participate in a Minnesota public defined contribution plan, other than a volunteer fire plan governed by chapter 424A. No employer or employee contribution to any of these plans may be made on behalf of such a person.
(d) For a person eligible under paragraphs (a) and (b) who earns more than $35,000 $46,000 in
a calendar year from employment after retirement due to employment by the Minnesota state colleges and
universities system, the annuity reduction provisions of section 354.44, subdivision 5, apply only to income over
$35,000 $46,000.
(e) A person who returns to work under this section is a member of the appropriate bargaining unit and is covered by the appropriate collective bargaining contract. Except as provided in this section, the person's coverage is subject to any part of the contract limiting rights of part-time employees.
Sec. 8. Minnesota Statutes 1998, section 354A.31, subdivision 3, is amended to read:
Subd. 3. [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A RETIREMENT ANNUITY.] (a) Any person who retired and is receiving a coordinated program retirement annuity under the provisions of sections 354A.31 to 354A.41 or any person receiving a basic program retirement annuity under the governing sections in the articles of incorporation or bylaws and who has resumed teaching service for the school district in which the teachers retirement fund association exists is entitled to continue to receive retirement annuity payments, except that annuity payments must be reduced during the calendar year immediately following the calendar year in which the person's income from the teaching service is in an amount greater than the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal old age, survivors, and disability insurance program as set by the secretary of health and human services under United States Code, title 42, section 403. The amount of the reduction must be one-third the amount in excess of the applicable reemployment income maximum specified in this subdivision and must be deducted from the annuity payable for the calendar year immediately following the calendar year in which the excess amount was earned. If the person has not yet reached the minimum age for the receipt of social security benefits, the maximum earnings for the person must be equal to the annual maximum earnings allowable for the minimum age for the receipt of social security benefits.
(b) If the person is retired for only a fractional part of the calendar year during the initial year of retirement, the maximum reemployment income specified in this subdivision must be prorated for that calendar year.
(c) After a person has reached the age of 70, no reemployment income maximum is applicable regardless of the amount of any compensation received for teaching service for the school district in which the teachers retirement fund association exists.
(d) The amount of the retirement annuity reduction must be handled or disposed of as provided in section 356.58.
(e) For the purpose of this subdivision, income from teaching service includes: (i) all income for services performed as a consultant or independent contractor; or income resulting from working with the school district in any capacity; and (ii) the greater of either the income received or an amount based on the rate paid with respect to an administrative position, consultant, or independent contractor in the school district in which the teachers retirement fund association exists and at the same level as the position occupied by the person who resumes teaching service.
Sec. 9. Minnesota Statutes 1998, section 354A.31, subdivision 3a, is amended to read:
Subd. 3a. [NO ANNUITY REDUCTION.] (a) The annuity reduction provisions of subdivision 3 do not apply to a person who:
(1) retires from the technical college system with at least ten years of service credit in the system from which the person retires;
(2) was employed on a full-time basis immediately preceding retirement as a technical college faculty member;
(3) begins drawing an annuity from a first class city teachers retirement association; and
(4) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the
technical college system under an agreement in which the person may not earn a salary of more than
$35,000 $46,000 in a calendar year from the technical college system.
(b) Initial participation, the amount of time worked, and the duration of participation under this section must be mutually agreed upon by the employer and the employee. The employer may require up to a one-year notice of intent to participate in the program as a condition of participation under this section. The employer shall determine the time of year the employee shall work.
(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and (b) may not earn further service credit in a first class city teachers retirement association and is not eligible to participate in the individual retirement account plan or the supplemental retirement plan established in chapter 354B as a result of service under this section. No employer or employee contribution to any of these plans may be made on behalf of such a person.
Sec. 10. [356.58] [DISPOSITION OF AMOUNT IN EXCESS OF REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.]
Subdivision 1. [APPLICATION.] This section applies to the balance of annual retirement annuities on the amount of retirement annuity reductions after reemployed annuitant earnings limitations for retirement plans governed by sections 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 354A.31, subdivision 3.
Subd. 2. [RECORDKEEPING; REPORTING.] The chief administrative officer of each retirement plan shall keep records for each reemployed annuitant of the amount of the annuity reduction. This amount must be reported to each member at least once each year.
Subd. 3. [PAYMENT.] (a) Upon the retired member attaining the age of 65 years or upon the first day of the month next following the month occurring one year after the termination of the reemployment that gave rise to the limitation, whichever is later, and the filing of a written application, the retired member is entitled the payment, in a lump sum, of the value of the person's amount under subdivision 2, plus interest at the compound annual rate of six percent from the date that the amount was deducted from the retirement annuity to the date of payment.
(b) The written application must be on a form prescribed by the chief administrative officer of the applicable retirement plan.
(c) If the retired member dies before the payment provided for in paragraph (a) is made, the amount is payable, upon written application, to the deceased person's surviving spouse, or if none, to the deceased person's designated beneficiary, or if none, to the deceased person's estate.
Sec. 11. [REPORT.]
The Minnesota state colleges and universities board shall report to the legislative commission on pensions and retirement by November 15, 2000, on the utilization of the annuitant employment program authorized by Minnesota Statutes, sections 136F.48; 352.1155, subdivisions 1 and 4; and 354.445. The report must include an evaluation by institutions that have used the program regarding its effectiveness as a human resource management tool.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective on July 1, 2000.
ARTICLE 3
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 1998, section 352.15, subdivision 1a, is amended to read:
Subd. 1a. [AUTOMATIC DEPOSITS.] The executive director may pay an remit, through an
automatic deposit system, annuity, benefit, or refund payments only to a banking
financial institution, qualified under chapter 48, associated with the National Automated
Clearinghouse Association or a comparable successor organization that is trustee for a person eligible to receive
the annuity, benefit, or refund. Upon the request of a retired, disabled, the retiree, disabilitant,
survivor, or former employee, the executive director may mail remit the annuity, benefit, or
refund check to a banking institution, savings association, or credit union the applicable financial
institution for deposit to in the employee's person's account or joint account.
The board of directors may prescribe the conditions under which payments will be made.
Sec. 2. Minnesota Statutes 1998, section 352B.01, subdivision 3, is amended to read:
Subd. 3. [ALLOWABLE SERVICES SERVICE.] (a) "Allowable service" means:
(a) (1) for members defined in subdivision 2, clause (a), monthly service is granted
for any month for which payments have been made to the state patrol retirement fund, and
(b) (2) for members defined in subdivision 2, clauses (b) and (c), service for which payments have
been made to the state patrol retirement fund, service for which payments were made to the state police officers
retirement fund after June 30, 1961, and all prior service which was credited to a member for service on or before
June 30, 1961.
(b) Allowable service also includes any period of absence from duty by a member who, by reason of injury incurred in the performance of duty, is temporarily disabled and for which disability the state is liable under the workers' compensation law, until the date authorized by the executive director for commencement of payment of a disability benefit or return to employment.
Sec. 3. Minnesota Statutes 1998, section 352D.02, subdivision 1, is amended to read:
Subdivision 1. [COVERAGE.] (a) Employees enumerated in paragraph (c), clauses (2), (3), (4), and (6) to (15),
if they are in the unclassified service of the state or metropolitan council and are eligible for coverage under the
general state employees retirement plan under chapter 352, are participants in the unclassified program
plan under this chapter unless the employee gives notice to the executive director of the Minnesota state
retirement system within one year following the commencement of employment in the unclassified service that the
employee desires coverage under the general state employees retirement plan. For the purposes of this chapter, an
employee who does not file notice with the executive director is deemed to have exercised the option to participate
in the unclassified plan.
(b) Persons referenced in paragraph (c), clauses (1) and (5), are participants in the unclassified program under this chapter unless the person is eligible to elect different coverage under section 3A.07 or 352C.011 and, after July 1, 1998, elects retirement coverage by the applicable alternative retirement plan.
(c) Enumerated employees and referenced persons are:
(1) the governor, the lieutenant governor, the secretary of state, the state auditor, the state treasurer, and the attorney general;
(2) an employee in the office of the governor, lieutenant governor, secretary of state, state auditor, state treasurer, attorney general;
(3) an employee of the state board of investment;
(4) the head of a department, division, or agency created by statute in the unclassified service, an acting department head subsequently appointed to the position, or an employee enumerated in section 15A.0815 or 15A.083, subdivision 4;
(5) a member of the legislature;
(6) a permanent, full-time unclassified employee of the legislature or a commission or agency of the legislature or a temporary legislative employee having shares in the supplemental retirement fund as a result of former employment covered by this chapter, whether or not eligible for coverage under the Minnesota state retirement system;
(7) a person who is employed in a position established under section 43A.08, subdivision 1, clause (3), or in a position authorized under a statute creating or establishing a department or agency of the state, which is at the deputy or assistant head of department or agency or director level;
(8) the regional administrator, or executive director of the metropolitan council, general counsel, division
directors, operations managers, and other positions as designated by the council, all of which may not exceed 27
positions at the council and the chair, provided that upon initial designation of all positions provided for in this
clause, no further designations or redesignations may be made without approval of the board of directors of the
Minnesota state retirement system;
(9) the executive director, associate executive director, and not to exceed nine positions of the higher education services office in the unclassified service, as designated by the higher education services office before January 1, 1992, or subsequently redesignated with the approval of the board of directors of the Minnesota state retirement system, unless the person has elected coverage by the individual retirement account plan under chapter 354B;
(10) the clerk of the appellate courts appointed under article VI, section 2, of the Constitution of the state of Minnesota;
(11) the chief executive officers of correctional facilities operated by the department of corrections and of hospitals and nursing homes operated by the department of human services;
(12) an employee whose principal employment is at the state ceremonial house;
(13) an employee of the Minnesota educational computing corporation;
(14) an employee of the world trade center board; and
(15) an employee of the state lottery board who is covered by the managerial plan established under section 43A.18, subdivision 3.
Sec. 4. Minnesota Statutes 1998, section 352D.05, subdivision 3, is amended to read:
Subd. 3. [FULL OR PARTIAL WITHDRAWAL.] After termination of covered employment or at any time thereafter, a participant is entitled, upon application, to withdraw the cash value of the participant's total shares or leave such shares on deposit with the supplemental retirement fund. The account is valued at the end of the month in which application for withdrawal is made. Shares not withdrawn remain on deposit with the supplemental retirement fund until the former participant becomes at least 55 years old, and applies for an annuity under section 352D.06, subdivision 1.
Sec. 5. Minnesota Statutes 1998, section 352D.06, is amended to read:
352D.06 [ANNUITIES.]
Subdivision 1. [ANNUITY; RESERVES.] When a participant attains at least age 55, is retired
terminates from covered service, and applies for a retirement annuity, the cash value of the participant's
shares shall be transferred to the Minnesota postretirement investment fund and used to provide an annuity for the
retired employee based upon the participant's age when the benefit begins to accrue according to the reserve basis
used by the general state employees retirement fund plan in determining pensions and
reserves.
Subd. 2. [PARTIAL VALUE ANNUITY.] A participant has the option in an application for an annuity to apply
for and receive the a partial value of one-half of the total shares and thereafter receive an
annuity, as provided in subdivision 1, based on the remaining value of one-half of the total shares.
Subd. 3. [ACCRUAL DATE.] An annuity herein shall begin to accrue under this section accrues
the first day of the first full month after an application is received or after termination of state service, whichever
is later. Upon the former employee's request, the annuity may begin to accrue up to six months before redemption
of shares, but not prior to the termination date from covered service, and must be based on the account value at
redemption and upon the age of the former employee at the date annuity accrual starts. The account must be valued
and redeemed on the later of the end of the month of termination of covered employment, or the end of the month
of receipt of the annuity application for the purpose of computing the annuity.
Sec. 6. Minnesota Statutes 1998, section 352D.09, subdivision 5a, is amended to read:
Subd. 5a. [SMALL BALANCE ACCOUNTS.] If a former participant who contributed less than $100
$500 in employee contributions cannot be contacted by the system for five or more years, the value of the
shares shall be appropriated to the general employees retirement fund, but upon subsequent contact by the former
employee the account shall be reinstated to the amount that would have been payable had the money been left in the
unclassified plan.
Sec. 7. Minnesota Statutes 1998, section 353.01, subdivision 2, is amended to read:
Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" means an employee performing personal services for a governmental subdivision under subdivision 6, whose salary is paid, in whole or in part, from revenue derived from taxation, fees, assessments, or from other sources. The term also includes special classes of persons listed in subdivision 2a, but excludes special classes of persons listed in subdivision 2b for purposes of membership in the association. Public employee does not include independent contractors and their employees. A reemployed annuitant under section 353.37 must not be considered to be a public employee for purposes of that reemployment.
Sec. 8. Minnesota Statutes 1998, section 353.01, subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental subdivision" means a county, city, town, school district within this state, or a department or unit of state government, or any public body whose revenues are derived from taxation, fees, assessments or from other sources.
(b) Governmental subdivision also means the public employees retirement association, the league of Minnesota
cities, the association of metropolitan municipalities, public hospitals owned or operated by, or an integral part of,
a governmental subdivision or governmental subdivisions, the association of Minnesota counties, the metropolitan
intercounty association, the Minnesota municipal utilities association, the metropolitan airports commission,
and the Minneapolis employees retirement fund for employment initially commenced after June 30, 1979,
the range association of municipalities and schools, soil and water conservation districts, and economic development
authorities created or operating under sections 469.090 to 469.108.
(c) Governmental subdivision does not mean any municipal housing and redevelopment authority organized under
the provisions of sections 469.001 to 469.047; or any port authority organized under sections 469.048 to
469.068 469.089; or any hospital district organized or reorganized prior to July 1, 1975, under
sections 447.31 to 447.37 or the successor of the district, nor the Minneapolis community development agency.
Sec. 9. Minnesota Statutes 1999 Supplement, section 353.01, subdivision 10, is amended to read:
Subd. 10. [SALARY.] (a) "Salary" means:
(1) periodic compensation of a public employee, before deductions for deferred compensation, supplemental retirement plans, or other voluntary salary reduction programs, and also means "wages" and includes net income from fees; and
(2) for a public employee who has prior service covered by a local police or firefighters' relief association that has consolidated with the public employees retirement association or to which section 353.665 applies and who has elected coverage either under the public employees police and fire fund benefit plan under section 353A.08 following the consolidation or under section 353.665, subdivision 4, "salary" means the rate of salary upon which member contributions to the special fund of the relief association were made prior to the effective date of the consolidation as specified by law and by bylaw provisions governing the relief association on the date of the initiation of the consolidation procedure and the actual periodic compensation of the public employee after the effective date of consolidation.
(b) Salary does not mean:
(1) fees paid to district court reporters, unused annual vacation or sick leave payments, in lump-sum or periodic payments, severance payments, reimbursement of expenses, lump-sum settlements not attached to a specific earnings period, or workers' compensation payments;
(2) employer-paid amounts used by an employee toward the cost of insurance coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses, or any payments in lieu of any employer-paid group insurance coverage, including the difference between single and family rates that may be paid to a member with single coverage and certain amounts determined by the executive director to be ineligible;
(3) the amount equal to that which the employing governmental subdivision would otherwise pay toward single or family insurance coverage for a covered employee when, through a contract or agreement with some but not all employees, the employer:
(i) discontinues, or for new hires does not provide, payment toward the cost of the employee's selected insurance coverages under a group plan offered by the employer;
(ii) makes the employee solely responsible for all contributions toward the cost of the employee's selected insurance coverages under a group plan offered by the employer, including any amount the employer makes toward other employees' selected insurance coverages under a group plan offered by the employer; and
(iii) provides increased salary rates for employees who do not have any employer-paid group insurance coverages; and
(4) except as provided in section 353.86 or 353.87, compensation of any kind paid to volunteer ambulance service
personnel or volunteer firefighters, as defined in subdivisions subdivision 35 and
or 36.
Sec. 10. Minnesota Statutes 1998, section 353.01, subdivision 11a, is amended to read:
Subd. 11a. [TERMINATION OF PUBLIC SERVICE.] (a) "Termination of public service" occurs when
a member resigns or is dismissed from public service by the employing governmental subdivision, as evidenced
by appropriate written record transmitted to the association, or when a position ends and the member who
held the position is not considered by the governmental subdivision to be on a temporary layoff, and the
employee does not, within 30 days of resignation or dismissal the date the employment
relationship ended, return to a nontemporary an employment position in the same
governmental subdivision.
(b) The termination of public service must be recorded in the association records upon receipt of an appropriate notice from the governmental subdivision.
Sec. 11. Minnesota Statutes 1998, section 353.01, subdivision 28, is amended to read:
Subd. 28. [RETIREMENT.] (a) "Retirement" means the commencement of payment of an annuity based on a date
designated by the board of trustees. This date determines the rights under this chapter which occur either before or
after retirement. A right to retirement is subject to termination of public service under subdivision 11a or
termination of membership under subdivision 11b, the earlier of which will determine the date membership and
coverage cease. A right to retirement must not accrue without requires a complete and
continuous separation for 30 days from employment as a public employee under subdivision 2 and from
the provision of paid services to that employer.
(b) An individual who separates from employment as a public employee and who, within 30 days of separation, returns to provide service to a governmental subdivision as an independent contractor or as an employee of an independent contractor, has not satisfied separation requirements under paragraph (a).
(c) A former member of the basic or police and fire fund who becomes a coordinated member upon returning to eligible, nontemporary public service, terminates employment before obtaining six months' allowable service under subdivision 16, paragraph (a), in the coordinated fund, and is eligible to receive an annuity the first day of the month after the most recent termination date shall not accrue a right to a retirement annuity under the coordinated fund. An annuity otherwise payable to the former member must be based on the laws in effect on the date of termination
of the most recent service under the basic or police and fire fund and shall be retroactive to the first day of the month
following that termination date or one year preceding the filing of an application for retirement annuity as provided
by section 353.29, subdivision 7, whichever is later. The annuity payment must be suspended or reduced
under the provisions of section 353.37, if earned compensation for the reemployment equals or exceeds the amounts
indicated under that section. The association will refund the employee deductions made to the coordinated fund,
with interest under section 353.34, subdivision 2, return the accompanying employer contributions, and remove the
allowable service credits covering the deductions refunded.
(b) (d) Notwithstanding the 30-day separation requirement under paragraph (a), a
member of the defined benefit plan under this chapter, who also participates in the public employees defined
contribution plan under chapter 353D for other public service, may be paid, if eligible, a retirement annuity from
the defined benefit plan while participating in the defined contribution plan.
Sec. 12. Minnesota Statutes 1998, section 353.01, subdivision 32, is amended to read:
Subd. 32. [COORDINATED MEMBER.] "Coordinated member" means any public employee, including any
public hospital employee, covered by any agreement or modification made between the state and the Secretary of
Health, Education and Welfare, making the provisions of the federal Old Age, Survivors and Disability Insurance
Act applicable to the member if membership eligibility criteria are met under this chapter. A coordinated
member also means is a former basic member who terminates public service under
subdivision 11a, has a complete and continuous separation for at least 30 days from employment as a public
employee meeting the requirements specified in subdivision 28, paragraphs (a) and (b), and who reenters public
service in a nontemporary position, as a public employee and meets the membership eligibility
criteria under this chapter.
Sec. 13. Minnesota Statutes 1998, section 353.15, subdivision 2, is amended to read:
Subd. 2. [AUTOMATIC DEPOSITS.] The association may pay an remit, through an automatic
deposit system, annuity, benefit, or refund payments only to a trust company, qualified
under chapter 48, financial institution associated with the National Automated Clearinghouse Association
or a comparable successor organization that is the trustee for a person eligible to receive such
the annuity, benefit, or refund. Upon the request of a retired, disabled the retiree, disabilitant,
survivor, or former member, the association may mail or send by electronic transfer the annuity, benefit or
refund check to a banking institution, savings association or credit union the applicable financial
institution for deposit to such in the person's account or joint account with a spouse. The
association may prescribe the conditions under which such payment will be made.
Sec. 14. Minnesota Statutes 1998, section 353.27, subdivision 4, is amended to read:
Subd. 4. [EMPLOYERS EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS;
MEMBER STATUS.] (a) A representative authorized by the head of each department shall deduct employee
contributions from the salary of each member employee who qualifies for membership under this
chapter and issue or approve one warrant remit payment in a manner prescribed by the executive
director for the aggregate amount of the employee contributions, the employer contributions and the additional
employer contributions to be received within 20 14 calendar days in the office of the
association. The head of each department or the person's designee shall, for each pay period
in which employee contributions are deducted, submit to the association a salary deduction report,
in the form format prescribed by the executive director, showing. Data to be submitted
as part of salary deduction reporting must include, but are not limited to:
(a) (1) the legal names and the association membership numbers, listed in alphabetical
order, social security numbers of employees who are members;
(b) (2) the legal names of all new public employees and the effective dates of appointment;
(c) the amount of each employee's salary deduction; (d)
(3) the amount of salary from which each deduction was made; (e) effective dates of member
terminations of public service accompanied by the applicable status code as set by the association for those
terminations caused by death or retirement; (f) effective dates of all temporary layoffs and leaves of absence
accompanied by the applicable status code as set by the association; and (g)
(4) the beginning and ending dates of the payroll period covered and the date of actual payment; and
(5) adjustments or corrections covering past pay periods.
Reports of contributions must be accompanied by a membership enrollment form
(b) Employers must furnish the data required for enrollment for each new employee who qualifies
for membership in the form format prescribed by the executive director. The required
enrollment forms from data on new employees must be collected by the employer and
submitted to the association within 30 days following the date of employment prior to or concurrent with
the submission of the initial employee salary deduction. The employer shall also report to the association all member
employment status changes, such as leaves of absence, terminations, and death, and the effective dates of those
changes, on an ongoing basis for the payroll cycle in which they occur. The employer shall furnish such
additional data, forms, and reports on magnetic media on other forms as may be
requested required by the executive director for proper administration of the retirement system.
Before implementing new or different computerized reporting requirements, the executive director shall give
appropriate advance notice to governmental subdivisions to allow time for system modifications.
(b) (c) Notwithstanding paragraph (a), the association may provide for less frequent reporting
and payments for small employers.
Sec. 15. Minnesota Statutes 1998, section 353.27, subdivision 12, is amended to read:
Subd. 12. [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In the case of omission of required
deductions from the salary of an employee, the department head or designee shall immediately, upon
discovery, report the employee for membership and deduct the employee deductions under subdivision 4. Upon
receipt of billing from the association, during the current pay period or during the pay period immediately
following the discovery of the omission. Payment for the omitted obligations may only be made in accordance with
reporting procedures and methods established by the executive director.
(b) When the entire omission period of an employee does not exceed 60 days, the governmental subdivision may report and submit payment of the omitted employee deductions and the omitted employer contributions through the reporting processes under subdivision 4.
(c) When the omission period of an employee exceeds 60 days, the governmental subdivision shall furnish
to the association sufficient data and documentation upon which the obligation for omitted employee and employer
contributions can be calculated. The omitted employee deductions must be deducted from the employee's
next subsequent salary payment or payments and remitted to the association. The
employee shall pay omitted employee deductions due for the 60 days prior to the end of the last pay period in the
omission period during which salary was earned. The employer shall pay any remaining omitted employee
deductions and any omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent
compounded annually, from the date or dates each omitted employee contribution was first payable.
(b) (d) An employer shall not hold an employee liable for omitted employee deductions beyond
the pay period dates under paragraph (a) (c), nor attempt to recover from the employee those
employee deductions paid by the employer on behalf of the employee. Omitted deductions due under paragraph
(a) (c) which are not paid by the employee constitute a liability of the employer that failed to deduct
the omitted deductions from the employee's salary. The employer shall make payment with interest at an annual rate
of 8.5 percent compounded annually. Omitted employee deductions are no longer due if an employee terminates
public service before making payment of omitted employee deductions to the association, but the employer remains
liable to pay omitted employer contributions plus interest at an annual rate of 8.5 percent compounded annually from
the date the contributions were first payable.
(c) (e) The association may not commence action for the recovery of omitted employee deductions
and employer contributions after the expiration of three calendar years after the calendar year in which the
contributions and deductions were omitted. Except as provided under paragraph (b), no payment may be
made or accepted unless the association has already commenced action for recovery of omitted deductions. An action
for recovery commences on the date of the mailing of any written correspondence from the association requesting
information from the governmental subdivision upon which to determine whether or not omitted deductions
occurred.
Sec. 16. Minnesota Statutes 1998, section 353.33, subdivision 2, is amended to read:
Subd. 2. [APPLICATIONS; ACCRUAL OF BENEFITS.] Every claim or demand for a total and permanent disability benefit must be initiated by written application in the manner and form prescribed by the executive director showing compliance with the statutory conditions qualifying the applicant for a total and permanent disability benefit and filed with the executive director. A member or former member who became totally and permanently disabled during a period of membership shall file application for total and permanent disability benefits within three years next following termination of public service. This benefit begins to accrue the day following the commencement of disability, 90 days preceding the filing of the application, or, if annual or sick leave is paid for more than the 90-day period, from the date salary ceased, whichever is later. No member is entitled to receive a disability benefit payment when there remains to the member's credit any unused annual leave or sick leave or under any other circumstances when, during the period of disability, there has been no impairment of the person's salary. Payment must not accrue beyond the end of the month in which entitlement has terminated. If the disabilitant dies prior to negotiating the check for the month in which death occurs, payment is made to the surviving spouse, or if none, to the designated beneficiary, or if none, to the estate. An applicant for total and permanent disability benefits may file a retirement annuity application under section 353.29, subdivision 4, simultaneously with an application for total and permanent disability benefits. The retirement annuity application is void upon the determination of the entitlement for disability benefits by the executive director. If disability benefits are denied, the retirement annuity application must be initiated and processed.
Sec. 17. Minnesota Statutes 1998, section 353.33, subdivision 6, is amended to read:
Subd. 6. [CONTINUING ELIGIBILITY FOR BENEFITS.] The association shall determine eligibility for
continuation of disability benefits and require periodic examinations and evaluations of disabled members as
frequently as deemed necessary. The association shall require the disabled member to provide and authorize release
of medical evidence, including all medical records and information from any source, relating to an application for
continuation of disability benefits. Disability benefits are contingent upon a disabled person's participation in a
vocational rehabilitation program if the executive director determines that the disabled person may be able to return
to a gainful occupation. If a member is found to be no longer totally and permanently disabled and is reinstated
to the payroll, payments must cease the first of the month following the reinstatement to the payroll
expiration of a 30-day period after the member receives a certified letter notifying the member that payments
will cease.
Sec. 18. Minnesota Statutes 1998, section 353.34, subdivision 1, is amended to read:
Subdivision 1. [REFUND OR DEFERRED ANNUITY.] (a) A former member is entitled to a refund of
accumulated employee deductions under subdivision 2, or to a deferred annuity under subdivision 3. An active
member of a fund enumerated in section 356.30, subdivision 3, clause (7), (8), or (14), who terminates public service
in any of those funds and becomes a member of another fund enumerated in those clauses may receive a refund of
employee contributions plus six percent interest compounded annually from the fund in which the member
terminated service. Application for a refund may not be made prior to the date of termination of public service
or the termination of membership, whichever is sooner. Except as specified in paragraph (b), a refund must
be paid within 120 days following receipt of the application unless the applicant has again become a public employee
required to be covered by the association.
(b) If an individual was granted an authorized temporary layoff, a refund is not payable before termination of membership under section 353.01, subdivision 11b, clause (3).
(c) An individual who terminates public service covered by the public employees retirement association general plan, the public employees retirement association police and fire plan, or the public employees local government corrections service retirement plan, and who becomes an active member covered by one of the other two plans, may receive a refund of employee contributions plus six percent interest compounded annually from the plan in which the member terminated service.
Sec. 19. Minnesota Statutes 1999 Supplement, section 353.64, subdivision 1, is amended to read:
Subdivision 1. [POLICE AND FIRE FUND PLAN MEMBERSHIP; MANDATORY.]
A governmental subdivision must report a public employee for membership in the police and fire plan if the
employee is employed full-time as specified in clause (1), (2), or (3):
(1) a full-time police officer or a person in charge of a designated police or sheriff's department, who by virtue of that employment is required by the employing governmental subdivision to be and is licensed by the Minnesota peace officer standards and training board under sections 626.84 to 626.863, who is charged with the prevention and detection of crime, who has the full power of arrest, who is assigned to a designated police or sheriff's department, and whose primary job is the enforcement of the general criminal laws of the state;
(2) a full-time firefighter or a person in charge of a designated fire company or companies who is engaged in the hazards of fire fighting; or
(3) a full-time police officer or firefighter meeting all requirements of clause (1) or (2), as applicable, who as part of the employment position is periodically assigned to employment duties in the same department that are not within the scope of this subdivision.
An individual to which clause (3) applies must contribute as a member of the police and fire plan for both the primary and secondary services that are provided to the employing governmental subdivision.
Subd. 1a. [POLICE AND FIRE PLAN; OTHER MEMBERS.] (a) A person who prior to July 1, 1961,
was a member of the police and fire fund plan, by virtue of being a police officer or firefighter,
shall, as long as the person remains in either position, continue membership in the fund plan.
(b) A person who was employed by a governmental subdivision as a police officer and was a member of the police
and fire fund plan on July 1, 1978, by virtue of being a police officer as defined by this section on
that date, and if employed by the same governmental subdivision in a position in the same department in which the
person was employed on that date, continues to be a member of the fund plan, whether or not that
person has the power of arrest by warrant and is licensed by the peace officers standards and training board after that
date.
(c) A person who was employed as a correctional officer by Rice county before July 1, 1998, for the duration of employment in the correctional position held on July 1, 1998, continues to be a member of the public employees police and fire plan, whether or not the person has the power of arrest by warrant and is licensed by the peace officers standards and training board after that date.
(c) (d) A person who was employed by a governmental subdivision as a police officer or a
firefighter, whichever applies, was an active member of the local police or salaried firefighters relief association
located in that governmental subdivision by virtue of that employment as of the effective date of the consolidation
as authorized by sections 353A.01 to 353A.10, and has elected coverage by the public employees police and fire
fund benefit plan, shall become a member of the police and fire fund plan after that date
if employed by the same governmental subdivision in a position in the same department in which the person was
employed on that date.
(d) Any other employee serving on a full-time basis as a police officer as defined in subdivision 2 or as a
firefighter as defined in subdivision 3 on or after July 1, 1961, shall become a member of the public employees police
and fire fund.
(e) An employee serving on less than a full-time basis as a police officer shall become a member of the public
employees police and fire fund only after a resolution stating that the employee should be covered by the police and
fire fund is adopted by the governing body of the governmental subdivision employing the person declaring that the
position which the person holds is that of a police officer.
(f) An employee serving on less than a full-time basis as a firefighter shall become a member of the public
employees police and fire fund only after a resolution stating that the employee should be covered by the police and
fire fund is adopted by the governing body of the governmental subdivision employing the person declaring that the
position which the person holds is that of a firefighter.
(g) A police officer or firefighter employed by a governmental subdivision who by virtue of that employment
is required by law to be a member of and to contribute to any police or firefighter relief association governed by
section 69.77 which has not consolidated with the public employees police and fire fund, (e) Any police
officer or firefighter of a relief association that has consolidated with the association for which the employee has not
elected coverage by the public employees police and fire fund benefit plan as provided in sections 353A.01
to 353A.10, or any police officer or firefighter to whom section 353.665 applies who has not elected coverage by the
public employees police and fire fund benefit plan as provided in section 353.665, subdivision 4,
shall must not become a member of the public employees police and fire fund
plan, but is not subject to the provisions of sections 353.651 to 353.659 unless an election for such coverage is
made under section 353.665, subdivision 4.
Sec. 20. Minnesota Statutes 1998, section 353.64, subdivision 2, is amended to read:
Subd. 2. [POLICE AND FIRE FUND MEMBERSHIP; PART-TIME EMPLOYMENT COVERAGE OPTION.]
Before a (a) The governing body of a governmental subdivision may adopt a resolution, subject to
requirements specified in paragraph (b), declaring that a public employee employed in a position on a part-time basis
by that governmental subdivision is covered by the police and fire plan for that employment.
(b) If the public employee's position is related to police service, the resolution is valid if the conditions specified in paragraph (c) are met. If the public employee's position is related to fire service, the resolution is valid if the conditions specified in paragraph (d) are met. If the public employee in the applicable position is periodically assigned to employment duties not within the scope of this subdivision, the resolution is considered valid if the governing body of the governmental subdivision declares that the public employee's position, for primary services provided, satisfies all of the requirements of subdivision 1, clause (3), other than the requirement of full-time employment.
(c) For the governing body may of the governmental subdivision to declare a position
to be that of a police officer, the duties and qualifications of the person so employed must, as
at a minimum, include employment as an officer of a designated police department or sheriff's office
or person in charge of a designated police department or sheriff's office whose primary job it is to enforce the law,
who is licensed by the Minnesota board of peace officer standards and training under sections 626.84 to 626.863,
who is engaged in the hazards of protecting the safety and property of others, and who has the power to arrest by
warrant.
A police officer who is periodically assigned to employment duties not within the scope of this subdivision
may contribute to the public employees police and fire fund for all service, if a resolution declaring that the primary
position held by the person is that of a police officer, is adopted by the governing body of the department, and is
promptly submitted to the executive director. satisfy all of the requirements of subdivision 1, clause (1), other
than the requirement of full-time employment.
(d) For the governing body of a governmental subdivision to declare a position to be that of a firefighter, the duties and qualifications of the person so employed must, at a minimum, satisfy all of the requirements of subdivision 1, clause (2), other than the requirement of full-time employment.
Sec. 21. Minnesota Statutes 1998, section 353.64, subdivision 3, is amended to read:
Subd. 3. [POLICE AND FIRE FUND MEMBERSHIP; EXCLUSION.] Before a governing body may declare
a position to be that of a firefighter, the duties of the person so employed must, as a minimum, include services as
an employee of a designated fire company or person in charge of a designated fire company or companies who is
engaged in the hazards of fire fighting. A firefighter who is periodically assigned to employment duties outside the
scope of firefighting may contribute to the public employees police and fire fund for all service, if a resolution
declaring that the primary position held by the person is that of a firefighter, is adopted by the governing body of
the company or companies, and is promptly submitted to the executive director. A police officer or
firefighter employed by a governmental subdivision who by virtue of that employment is required by law to be a
member of and to contribute to any police or firefighter relief association governed by section 69.77 which has not
consolidated with the public employees police and fire plan is not eligible to become a member of the public
employees police and fire plan.
Sec. 22. Minnesota Statutes 1998, section 353.64, subdivision 4, is amended to read:
Subd. 4. [RESOLUTION FILING.] (a) A copy of the resolution of the governing body declaring a position to be that of police officer or firefighter shall be promptly filed with the board of trustees and shall be irrevocable.
(b) Following the receipt of adequate notice from the association, if a valid resolution is not filed with the public employees retirement association within six months following the date of that notice, any contributions or deductions made to the police and fire fund for the applicable employment are deemed to be contributions or deductions transmitted in error under section 353.27, subdivision 7a.
Sec. 23. Minnesota Statutes 1998, section 353.656, subdivision 1, is amended to read:
Subdivision 1. [IN LINE OF DUTY; COMPUTATION OF BENEFITS.] A member of the police and fire
fund plan who becomes disabled and physically unfit to perform duties as a police officer
or, firefighter subsequent to June 30, 1973, or paramedic as defined under section
353.64, subdivision 10, as a direct result of an injury, sickness, or other disability incurred in or arising out of
any act of duty, which has or is expected to render the member physically or mentally unable to perform the
duties as a police officer or, firefighter, or paramedic as defined under section 353.64,
subdivision 10, for a period of at least one year, shall receive disability benefits during the period of such
disability. The benefits must be in an amount equal to 60 percent of the "average salary" under as
defined in section 353.651, subdivision 3 2, plus an additional percent specified in section
356.19, subdivision 6, of said that average salary for each year of service in excess of 20 years.
Should If the disability under this subdivision occur occurs before the member has
at least five years of allowable service credit in the police and fire fund plan, the disability benefit
must be computed on the "average salary" from which deductions were made for contribution to the police and fire
fund.
Sec. 24. Minnesota Statutes 1998, section 353.656, subdivision 3, is amended to read:
Subd. 3. [NONDUTY DISABILITY BENEFIT.] Any member of the police and fire plan who becomes
disabled after not less than one year of allowable service because of sickness or injury occurring while not on duty
as a police officer or, firefighter, or paramedic as defined under section 353.64, subdivision
10, and by reason of that sickness or injury the member has been or is expected to be unable to perform
the duties as a police officer or, firefighter, or paramedic as defined under section
353.64, subdivision 10, for a period of at least one year, is entitled to receive a disability benefit. The benefit
must be paid in the same manner as if the benefit were paid under section 353.651. If a disability under this
subdivision occurs after one but in less than 15 years of allowable service, the disability benefit must be the same as
though the member had at least 15 years service. For a member who is employed as a full-time firefighter by the
department of military affairs of the state of Minnesota, allowable service as a full-time state military affairs
department firefighter credited by the Minnesota state retirement system may be used in meeting the minimum
allowable service requirement of this subdivision.
Sec. 25. Minnesota Statutes 1998, section 353.71, subdivision 2, is amended to read:
Subd. 2. [DEFERRED ANNUITY COMPUTATION; AUGMENTATION.] (a) The deferred annuity, if
any, accruing under subdivision 1, or under sections 353.34, subdivision 3, and 353.68, subdivision
4, must be computed in the manner provided in said sections, on the basis of allowable service prior to
the termination of public service and augmented as provided herein in this paragraph.
The required reserves applicable to a deferred annuity, or to an annuity for which a former member was eligible
but had not applied, or to any deferred segment of an annuity shall must be determined as of
the date the annuity begins to accrue and shall be augmented from the first day of the month following the
month in which the former member ceased to be a public employee, or July 1, 1971, whichever is later, to the
first day of the month in which the annuity begins to accrue,. These required reserves must be
augmented at the rate of five percent per annum annually compounded annually until January
1, 1981, and at the rate of three percent thereafter until January 1 of the year following the year in which the former
member attains age 55. From that date to the effective date of retirement, the rate is five percent per annum
compounded annually. If a person has more than one period of uninterrupted service, the required reserves related
to each period shall must be augmented by interest pursuant to this subdivision as
specified in this paragraph. The sum of the augmented required reserves so determined shall be
is the present value of the annuity. Uninterrupted service for the purpose of this subdivision shall
mean means periods of covered employment during which the employee has not been separated from
public service for more than two years. If a person repays a refund, the restored service restored thereby
shall must be considered as continuous with the next period of service for which the employee has credit
with this association. The formula percentages used for each period of uninterrupted service shall be those as
would be applicable to a new employee. This section shall must not reduce the annuity
otherwise payable under this chapter. This subdivision paragraph shall apply
applies to individuals who become deferred annuitants of record on or after July
1, 1971, and to employees who thereafter become deferred annuitants; it shall also apply. For a member
who became a deferred annuitant before July 1, 1971, the paragraph applies from July 1, 1971, to if
the former members who make application active member applies for an annuity after July 1,
1973.
(b) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former member
who terminated service before July 1, 1997, or the survivor benefit payable on behalf of a basic or police and fire
member who was receiving disability benefits before July 1, 1997, which is not first payable
until after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the
postretirement interest rate actuarial assumption under section 356.215, subdivision 4d, from five percent to six
percent under a calculation procedure and tables adopted by the board and approved by the actuary retained by the
legislative commission on pensions and retirement.
Sec. 26. Minnesota Statutes 1998, section 353B.11, subdivision 3, is amended to read:
Subd. 3. [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The surviving spouse benefit shall be 30 percent of the salary base for the former members of the following consolidating relief associations:
(1) Albert Lea firefighters relief association;
(2) Albert Lea police relief association;
(3) Anoka police relief association;
(4) Austin police relief association;
(5) Brainerd police benefit association;
(6) Crookston police relief association;
(7) Faribault fire department relief association; and
(8) West St. Paul firefighters relief association.
(b) The surviving spouse benefit shall be 25 percent of the salary base for the former members of the following consolidating relief associations:
(1) Chisholm police relief association;
(2) Duluth firefighters relief association;
(3) Duluth police pension association;
(4) Fairmont police benefit association;
(5) Red Wing fire department relief association;
(6) South St. Paul police relief association; and
(7) West St. Paul police relief association.
(c) The surviving spouse benefit shall be 24 percent of the salary base for the former members of the following consolidating relief associations:
(1) Fridley police pension association;
(2) Richfield police relief association;
(3) Rochester fire department relief association;
(4) Rochester police relief association;
(5) Winona fire department relief association; and
(6) Winona police relief association.
(d) The surviving spouse benefit shall be 40 percent of the salary base for the former members of the following consolidating relief associations:
(1) Columbia Heights fire department relief association, paid division; and
(2) New Ulm police relief association.
(e) The surviving spouse benefit shall be $250 per month 30 percent of the salary base for the
former members of the following consolidating relief associations:
(1) Hibbing firefighters relief association; and
(2) Hibbing police relief association.
(f) The surviving spouse benefit shall be 23.75 percent of the salary base for the former members of the following consolidating relief associations:
(1) Crystal police relief associations; and
(2) Minneapolis police relief association.
(g) The surviving spouse benefit shall be 32 percent of the salary base for the former members of the following consolidating relief associations:
(1) St. Cloud fire department relief association; and
(2) St. Cloud police relief association.
(h) The surviving spouse benefit shall be one-half of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, for the former members of the following consolidating relief associations:
(1) Virginia fire department relief association; and
(2) Virginia police relief association.
(i) The surviving spouse benefit shall be the following for the former members of the consolidating relief associations as indicated:
(1) 30 percent of the salary base, reduced by any amount awarded or payable from the service pension or disability benefit of the deceased former firefighter to a former spouse of the member by virtue of the legal dissolution of the member's marriage to the former spouse if the surviving spouse married the member after the time of separation from active service, Austin firefighters relief association;
(2) 27.333 percent of the salary base, or one-half of the service pension payable to or accrued by the deceased former member, whichever is greater, Bloomington police relief association;
(3) 72.25 percent of the salary base, Buhl police relief association;
(4) 50 percent of the service pension which the active member would have received based on allowable service credit to the date of death and prospective service from the date of death until the date on which the person would have attained the normal retirement age, 50 percent of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or $175 per month if the deceased member was receiving a service pension or disability benefit as of the date of death, Chisholm firefighters relief association;
(5) two-thirds of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the greater of the allowable service credit of the person as of the date of death or 20 years of allowable service credit if the person would have been eligible as of the date of death, Columbia Heights police relief association;
(6) the greater of $300 per month or one-half of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Crookston fire department relief association;
(7) $100 per month, Faribault police benefit association;
(8) 60 percent of the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Mankato fire department relief association;
(9) $175 per month, Mankato police benefit association;
(10) 26.25 percent of the salary base, Minneapolis fire department relief association;
(11) equal to the service pension or disability benefit which the deceased member was receiving as of the date of death, or of the service pension which the deferred member would have been receiving if the service pension had commenced as of the date of death or of the service pension which the active member would have received based on the allowable service credit of the person as of the date of death if the person would have been eligible as of the date of death, Red Wing police relief association;
(12) 78.545 percent of the benefit amount payable prior to the death of the deceased active, disabled, deferred, or retired firefighter if that firefighter's benefit was 55 percent of salary or would have been 55 percent of salary if the firefighter had survived to begin benefit receipt; or 80 percent of the benefit amount payable prior to the death of the deceased active, disabled, deferred, or retired firefighter if that firefighter's benefit was 54 percent of salary or would have been 54 percent of salary if the firefighter had survived to begin benefit receipt, Richfield fire department relief association;
(13) 40 percent of the salary base for a surviving spouse of a deceased active member, disabled member, or retired or deferred member with at least 20 years of allowable service, or the prorated portion of 40 percent of the salary base that bears the same relationship to 40 percent that the deceased member's years of allowable service bear to 20 years of allowable service for the surviving spouse of a deceased retired or deferred member with at least ten but less than 20 years of allowable service, St. Louis Park fire department relief association;
(14) 26.6667 percent of the salary base, St. Louis Park police relief association;
(15) 27.5 percent of the salary base, St. Paul fire department relief association;
(16) 20 27.5 percent of the salary base, St. Paul police relief association; and
(17) 27 percent of the salary base, South St. Paul firefighters relief association.
Sec. 27. Minnesota Statutes 1998, section 354.05, subdivision 2, is amended to read:
Subd. 2. [TEACHER.] (a) "Teacher" means:
(1) a person who renders service as a teacher, supervisor, principal, superintendent, librarian, nurse, counselor,
social worker, therapist, or psychologist in the public schools of the state located outside of the corporate limits of
the cities of the first class as those cities were so classified on January 1, 1979, or in the Minnesota
state colleges and universities system, or in any charitable, penal, or correctional institutions of a governmental
subdivision, or who is engaged in educational administration in connection with the state public school system,
including the Minnesota state colleges and university universities system, but excluding
the University of Minnesota, whether the position be a public office or an employment, not including members or
officers of any general governing or managing board or body;
(2) an employee of the teachers retirement association unless the employee is covered by the Minnesota state
retirement system by virtue of due to prior employment by the association that
system;
(3) a person who renders teaching service on a part-time basis and who also renders other services for a single
employing unit. In such cases, the executive director shall determine whether all or none of the combined service
is covered by the association, however A person whose teaching service comprises at least 50 percent of the
combined employment salary is a member of the association for all services with the single employing unit. If
the person's teaching service comprises less than 50 percent of the combined employment salary, the executive
director must determine whether all or none of the combined service is covered by the association.
(b) The term Teacher does not mean:
(1) an employee described in section 352D.02, subdivision 1a, who is hired after the effective date of Laws
1986, chapter 458;
(2) a person who works for a school or institution as an independent contractor as defined by the Internal
Revenue Service;
(3) (2) a person employed in subsidized on-the-job training, work experience or public service
employment as an enrollee under the federal Comprehensive Employment and Training Act from and after March
30, 1978, unless the person has, as of the later of March 30, 1978, or the date of employment, sufficient service credit
in the retirement association to meet the minimum vesting requirements for a deferred retirement annuity, or the
employer agrees in writing on forms prescribed by the executive director to make the required employer
contributions, including any employer additional contributions, on account of that person from revenue sources other
than funds provided under the federal Comprehensive Training and Employment Act, or the person agrees in writing
on forms prescribed by the executive director to make the required employer contribution in addition to the required
employee contribution;
(4) (3) a person holding a part-time adult supplementary technical college license who renders
part-time teaching service or a customized trainer as defined by the Minnesota state colleges and universities
system in a technical college if (i) the service is incidental to the regular nonteaching occupation of the person;
and (ii) the applicable technical college stipulates annually in advance that the part-time teaching service or
customized training service will not exceed 300 hours in a fiscal year and retains the stipulation in its records;
and (iii) the part-time teaching service or customized training service actually does not exceed 300 hours
in a fiscal year; or
(5) (4) a person exempt from licensure pursuant to under section 122A.30.
Sec. 28. Minnesota Statutes 1998, section 354.05, subdivision 35, is amended to read:
Subd. 35. [SALARY.] (a) "Salary" means the periodic compensation, upon which member contributions
are required and made, that is paid to a teacher before employee-paid fringe benefits, tax sheltered annuities,
deferred compensation, or any combination of these employee-paid items are deducted before deductions
for deferred compensation, supplemental retirement plans, or other voluntary salary reduction programs.
(b) "Salary" does not mean:
(1) lump sum annual leave payments;
(2) lump sum wellness and sick leave payments;
(3) payments in lieu of any employer-paid group insurance coverage;
(4) payments for the difference between single and family premium rates that may be paid to a member with
single coverage;
(5) employer-paid fringe benefits including, but not limited to, flexible spending accounts, cafeteria plans,
health care expense accounts, day care expenses, or automobile allowances and expenses; employer-paid
amounts used by an employee toward the cost of insurance coverage, employer-paid fringe benefits, flexible spending
accounts,
cafeteria plans, health care expense accounts, day care expenses, or any payments in lieu of any employer-paid group insurance coverage, including the difference between single and family rates that may be paid to a member with single coverage and certain amounts determined by the executive director to be ineligible;
(6) (4) any form of payment made in lieu of any other employer-paid fringe benefit or expense;
(7) (5) any form of severance payments;
(8) (6) workers' compensation payments;
(9) (7) disability insurance payments including self-insured disability payments;
(10) (8) payments to school principals and all other administrators for services in addition to the
normal work year contract if these additional services are performed on an extended duty day, Saturday, Sunday,
holiday, annual leave day, sick leave day, or any other nonduty day;
(11) (9) payments under section 356.24, subdivision 1, clause (4); and
(12) (10) payments made under section 122A.40, subdivision 12, except for payments for sick
leave accumulated under the provisions of a uniform school district policy that applies equally to all similarly situated
persons in the district.
Sec. 29. Minnesota Statutes 1998, section 354.091, is amended to read:
354.091 [SERVICE CREDIT.]
(a) In computing the time of service of a teacher, the length of a legal school year in the district or
institution where such service was rendered must constitute a year under sections 354.05 to 354.10, provided the year
is not less than the legal minimum school year of this state. service credit, no person
teacher shall receive credit for more than one year of teaching service for any fiscal year. Commencing July
1, 1961,:
(1) if a teacher teaches only a fractional part of a day, credit must be given for a day of teaching service for
each less than five hours taught, and in a day, service credit must be given for the fractional
part of the day as the term of service performed bears to five hours;
(2) if a teacher teaches five or more hours in a day, service credit must be given for only one day;
(3) if a teacher teaches at least 170 full days in any fiscal year, service credit must be given for
a full year of teaching service,; and
(3) (4) if a teacher teaches for only a fractional part of the year, service credit must be
given for such fractional part of the year as the term period of service rendered
performed bears to 170 days.
(b) A person who teaches in the state colleges and university system teacher shall receive
a full year of service credit based on the number of days in the system's employer's full school year
if it is less than 170 days. Teaching service performed prior to before July 1, 1961, must be
computed under the law in effect at the time it was rendered performed.
(c) A teacher shall does not lose or gain retirement service credit as a result of the
employer converting to a four-day work week flexible or alternate work schedule. If the employer
does convert converts to a four-day work week flexible or alternate work schedule,
the forms for reporting and the procedures for determining service credit shall must be
determined by the executive director with the approval of the board of trustees.
Sec. 30. Minnesota Statutes 1998, section 354.092, subdivision 2, is amended to read:
Subd. 2. [PAY RATE; CERTIFICATION.] A sabbatical leave must be compensated by a minimum of one-third
of the salary that the member received for a comparable period during the prior fiscal year. Before the
end of the fiscal year during which any sabbatical leave is granted Upon granting a sabbatical leave,
the employing unit granting the leave must certify the leave to the association on a form specified by the executive
director.
Sec. 31. Minnesota Statutes 1998, section 354.093, is amended to read:
354.093 [PARENTAL OR MATERNITY LEAVE.]
Before the end of the fiscal year during which any parental or maternity leave is granted Upon
granting a parental leave for the birth or adoption of a child, the employing unit granting the leave must certify
the leave to the association on a form specified by the executive director. A member of the association granted
parental or maternity leave of absence by the employing unit is entitled to service credit not to exceed one
year for the period of leave upon payment to the association by the end of the fiscal year following the fiscal year in
which the leave of absence terminated. This payment must include equal the total required
employee, and employer contributions, and amortization contributions, if any,
for the period of leave prescribed in section 354.42. The payment must be based on the member's average full-time
monthly salary rate on the date the leave of absence commenced, and must be without interest. Notwithstanding the
provisions of any agreements to the contrary, employee and employer the contributions specified
in this section may not be made to receive allowable service credit under this section if the member does not
retain the right to full reinstatement at the end of the leave.
Sec. 32. Minnesota Statutes 1998, section 354.094, subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] Before the end of the fiscal year during which
Upon granting any extended leave of absence is granted pursuant to under section 122A.46
or 136F.43, the employing unit granting the leave must certify the leave to the association on a form specified by
the executive director. A member granted an extended leave of absence pursuant to under section
122A.46 or 136F.43 may pay employee contributions and receive allowable service credit toward annuities and other
benefits under this chapter, for each year of the leave, provided that the member and the employing
board make the required employer contribution in any proportion they may agree upon, during the period of the
leave. which shall The leave period must not exceed five years. A member may not receive
more than five years of allowable service credit under this section. The employee and employer contributions must
be based upon the rates of contribution prescribed by section 354.42 for the salary received during the year
immediately preceding the extended leave. Payments for the years for which a member is receiving service credit
while on extended leave must be made on or before the later of June 30 of each fiscal year for which service credit
is received or within 30 days after first notification of the amount due, if requested by the member, is given by the
association. No payment is permitted after the following September 30. Payments received after June 30 must
include interest at an annual rate of 8.5 percent from June 30 through the end of the month in which payment is
received. Notwithstanding the provisions of any agreements to the contrary, employee and employer contributions
may not be made to receive allowable service credit if the member does not have full reinstatement rights as provided
in section 122A.46 or 136F.43, both during and at the end of the extended leave.
Sec. 33. Minnesota Statutes 1998, section 354.10, subdivision 2, is amended to read:
Subd. 2. [AUTOMATIC DEPOSITS.] Upon receipt of the properly completed forms as provided by the executive
director, the annuity or, benefit or refund amount may be electronically transferred or the
annuity or benefit check may be mailed to a banking institution, savings association, or credit union any
financial institution associated with the National Automated Clearinghouse Association or a comparable successor
organization for deposit to the recipient's individual account or joint account with the recipient's spouse or any
other person designated by the recipient. An overpayment to a joint account after the death of the annuity or benefit
recipient must be repaid to the fund by the joint tenant if the overpayment is not repaid to the fund by the banking
institution, savings association, or credit union financial institution associated with the National Automated
Clearinghouse Association or its successor. The board may prescribe the conditions which govern these
procedures.
Sec. 34. Minnesota Statutes 1998, section 354.35, is amended to read:
354.35 [OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFORE AGE 65 NORMAL
RETIREMENT AGE.]
Any coordinated member who retires before age 65 may elect to receive an optional accelerated retirement annuity
from the association which provides for different annuity amounts over different periods of retirement. The
election of this optional accelerated retirement annuity is exercised by making an application to the board on a form
provided by the executive director. The optional accelerated retirement annuity must take the form of an annuity
payable for the period before the member attains age 65 in a greater amount than the amount of the annuity
calculated under section 354.44 on the basis of the age of the member at retirement, but the optional accelerated
retirement annuity must be the actuarial equivalent of the member's annuity computed on the basis of the member's
age at retirement. The greater amount must be paid until the retiree reaches age 65 and at that time the payment
from the association must be reduced. For each year the retiree is under age 65, up to five percent of the total life
annuity required reserves may be used to accelerate the optional retirement annuity under this section. At retirement,
members who retire before age 62 may elect to have the age specified in this section be 62 instead of 65. This
election is irrevocable and may be made only once on the application form provided by the executive director.
The method of computing the optional accelerated retirement annuity provided in this section is established by the
board of trustees. In establishing the method of computing the optional accelerated retirement annuity, the board
of trustees must obtain the written approval of the commission-retained actuary. The written approval must be a part
of the permanent records of the board of trustees. The election of an optional accelerated retirement annuity is
exercised by making an application on a form provided by the executive director.
Sec. 35. Minnesota Statutes 1998, section 354.46, subdivision 2a, is amended to read:
Subd. 2a. [SURVIVOR COVERAGE TERM CERTAIN.] In lieu of the 100 percent optional annuity under subdivision 2, or a refund under section 354.47, subdivision 1, the surviving spouse of a deceased member may elect to receive survivor coverage in a term certain of five, ten, 15, or 20 years, but monthly payments must not exceed 75 percent of the average high-five monthly salary of the deceased member. The monthly term certain annuity must be actuarially equivalent to the 100 percent optional annuity under subdivision 2.
If a surviving spouse elects a term certain payment and dies before the expiration of the specified term certain
period, the commuted value of the remaining annuity payments must be paid in a lump sum to the survivor's
surviving spouse's estate.
Sec. 36. Minnesota Statutes 1998, section 354.47, subdivision 1, is amended to read:
Subdivision 1. [DEATH BEFORE RETIREMENT.] (1) (a) If a member dies before retirement
and is covered under section 354.44, subdivision 2, and neither an optional annuity, nor a reversionary annuity, nor
a benefit under section 354.46, subdivision 1, is payable to the survivors if the member was a basic member,
then the surviving spouse, or if there is no surviving spouse, the designated beneficiary is entitled to an
amount equal to the member's accumulated deductions with interest credited to the account of the member to the date
of death of the member. If the designated beneficiary is a minor, interest must be credited to the date the
beneficiary reaches legal age, or the date of receipt, whichever is earlier.
(2) (b) If a member dies before retirement and is covered under section 354.44, subdivision 6,
and neither an optional annuity, nor reversionary annuity, nor the benefit described in section 354.46, subdivision
1, is payable to the survivors if the member was a basic member, then the surviving spouse, or if there is
no surviving spouse, the designated beneficiary is entitled to an amount equal to the member's accumulated
deductions credited to the account of the member as of June 30, 1957, and from July 1, 1957, to the date of death
of the member, the member's accumulated deductions plus six percent interest at the rate of
six percent per annum compounded annually.
(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited under that paragraph must be credited to the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier.
Sec. 37. Minnesota Statutes 1998, section 354.48, subdivision 6, is amended to read:
Subd. 6. [REGULAR PHYSICAL EXAMINATIONS.] At least once each year during the first five years
following the allowance of a disability benefit to any member, and at least once in every three-year period thereafter,
the executive director shall require the disability beneficiary to undergo a medical examination to be made at the
place of residence of such person, or at any other place mutually agreed upon, by a physician or physicians
engaged by the executive director. If any examination indicates that the member is no longer permanently and totally
disabled or that the member is engaged or is able to engage in a substantial gainful occupation, payments of the
disability benefit by the association shall be discontinued. The payments shall discontinue as soon as the member
is reinstated to the payroll following sick leave, but payment may not be made for more than 60 days after physicians
engaged by the executive director find that the person is no longer permanently and totally disabled.
Sec. 38. Minnesota Statutes 1998, section 354.49, subdivision 1, is amended to read:
Subdivision 1. [ENTITLEMENT, APPLICATION.] A person who ceases to render teaching service in any school
or institution to which the provisions of this chapter apply is entitled to a refund provided in subdivision 2, or a
deferred retirement annuity under section 354.55, subdivision 11. An application for a refund must not be made
sooner than 30 days after termination of teaching service if the applicant has not again become a teacher. This
payment must be made within 90 45 days after the receipt of an application for
a refund or upon completion of processing the report made pursuant to section 354.52, subdivision 2
the receipt of member reporting data under section 354.52, subdivision 4a, and payroll cycle data under section
354.52, subdivision 4b, whichever is later.
Sec. 39. Minnesota Statutes 1998, section 354.52, subdivision 3, is amended to read:
Subd. 3. [DUTY OF FINANCE OFFICIALS DEDUCTION REQUIREMENTS.] It is the
duty of each person, officer, school board, or managing body required by law to draw the warrants or orders for
payment of salaries to teachers to Every pay period, each employer shall deduct and withhold from
all the salary paid each pay period to of every teacher who is a member of the fund
the amount which the teacher is required to pay into the fund and, required under section 354.42.
At the time of each deduction, to the employer shall also furnish to each teacher a statement
showing the amount of the deduction.
Sec. 40. Minnesota Statutes 1998, section 354.52, subdivision 4, is amended to read:
Subd. 4. [REPORTING AND REMITTANCE REQUIREMENTS.] At least once each month, a representative
authorized by An employing unit employer shall transmit remit all amounts
due to the association and furnish a signed statement indicating the amount due and transmitted with
any other information required by the executive director. Signing the statement has the force and effect
of an oath as to the correctness of the amount due and transmitted. If an amount due and
is not transmitted received by the association within seven calendar days of the payroll warrant,
the amount accrues interest at an annual rate of 8.5 percent compounded annually commencing 15 days
after from the due date first due until the amount is transmitted and must be paid
by the employing unit. These payments received by the association. All amounts due and other
employing unit employer obligations not remitted within 60 days of notification by the association
must be certified to the commissioner of finance who shall deduct the amount from any state aid or appropriation
amount applicable to the employing unit.
Sec. 41. Minnesota Statutes 1998, section 354.52, subdivision 4a, is amended to read:
Subd. 4a. [MEMBER DATA REPORTING REQUIREMENTS.] (a) An employing unit shall
must initially provide the following member data specified in paragraph (b) or any of that
data not previously provided to the association for payroll warrants dated after June 30, 1995, in a format prescribed
by the executive director. Data changes and the dates of those changes under this subdivision must be
reported to the association on an ongoing basis for within 14 calendar days after the date of the
end of the payroll cycle in which they occur. These data changes must be reported with the
payroll cycle data under subdivision 4b.
(b) Data on the member includes:
(1) legal name, address, date of birth, association member number, employer-assigned employee number, and social security number;
(2) association status, including, but not limited to, basic, coordinated, exempt annuitant, exempt technical college teacher, and exempt independent contractor or consultant;
(3) employment status, including, but not limited to, full time, part time, intermittent, substitute, or part-time mobility;
(4) employment position, including, but not limited to, teacher, superintendent, principal, administrator, or other;
(5) employment activity, including, but not limited to, hire, termination, resumption of employment, disability, or death;
(6) leaves of absence;
(7) county district number assigned by the association for the employing unit;
(8) data center identification number, if applicable; and
(9) other information as may be required by the executive director.
Sec. 42. Minnesota Statutes 1998, section 354.52, subdivision 4b, is amended to read:
Subd. 4b. [PAYROLL CYCLE REPORTING REQUIREMENTS.] An employing unit shall provide the following
data to the association for payroll warrants dated after June 30, 1995, for each on an ongoing basis
within 14 calendar days after the date of the payroll cycle warrant in a format prescribed by
the executive director:
(1) association member number;
(2) employer-assigned employee number;
(3) social security number;
(4) amount of each salary deduction;
(5) amount of salary as defined in section 354.05, subdivision 35, from which each deduction was made;
(6) reason for payment;
(7) service credit;
(8) the beginning and ending dates of the payroll period covered and the date of actual payment;
(9) fiscal year of salary earnings;
(10) total remittance amount including employee, employer, and additional employer contributions; and
(11) other information as may be required by the executive director.
Sec. 43. Minnesota Statutes 1998, section 354.63, subdivision 2, is amended to read:
Subd. 2. [VALUATION OF ASSETS; ADJUSTMENT OF BENEFITS.] (1) The required reserves for retirement
annuities as determined in accordance with under this chapter shall must
be transferred to the Minnesota postretirement investment fund as of no later than the last business
day of the month in which the retirement annuity begins. The required reserves shall be determined in accordance
with the appropriate annuity table of mortality adopted by the board of trustees as provided in section 354.07,
subdivision 1, based on the experience of the fund as recommended by the commission-retained actuary and using
the interest assumption specified in section 356.215, subdivision 4d.
(2) Annuity payments shall be adjusted as provided in accordance with the provisions of section
11A.18. In making these adjustments, members who retire effective July 1 shall be considered to have retired
effective the preceding June 30. This section applies to persons who retired effective July 1, 1982, or later.
(3) An increase in annuity payments pursuant to under this section will be made automatically
unless written notice is filed by the annuitant with the executive director of the teachers retirement association
requesting that the increase shall not be made.
Sec. 44. Minnesota Statutes 1998, section 356.30, subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) (a) Notwithstanding any
provisions to the contrary of the laws governing the funds plans enumerated in subdivision
3, a person who has met the qualifications of clause (2) paragraph (b) may elect to receive a
retirement annuity from each fund plan in which the person has at least six months
one-half year of allowable service, based on the allowable service in each fund plan, subject
to the provisions of clause (3) paragraph (c).
(2) (b) A person may receive upon retirement a retirement annuity from each fund
plan in which the person has at least six months one-half year of allowable service, and
augmentation of a deferred annuity calculated under the laws governing each public pension plan or fund named
in subdivision 3, from the date the person terminated all public service if:
(a) (1) the person has allowable service totaling an amount that allows the person to receive an
annuity in any two or more of the enumerated funds plans; and
(b) (2) the person has not begun to receive an annuity from any enumerated fund
plan or the person has made application for benefits from all funds each applicable plan
and the effective dates of the retirement annuity with each fund plan under which the person
chooses to receive an annuity are within a one-year period.
(3) (c) The retirement annuity from each fund plan must be based upon the
allowable service, accrual rates, and average salary in each fund, except that the applicable plan
as further specified or modified in the following clauses:
(a) (1) the laws governing annuities must be the law in effect on the date of termination from
the last period of public service under a covered fund plan with which the person earned a minimum
of one-half year of allowable service credit during that employment.;
(b) (2) the "average salary" on which the annuity from each covered fund plan
in which the employee has credit in a formula plan shall be based on the employee's highest five successive years
of covered salary during the entire service in covered funds. plans;
(c) (3) The formula percentages accrual rates to be used by each fund
plan must be those percentages prescribed by each fund's plan's formula as continued for
the respective years of allowable service from one fund plan to the next, recognizing all previous
allowable service with the other covered funds. plans;
(d) (4) allowable service in all the funds plans must be combined in determining
eligibility for and the application of each fund's plan's provisions in respect to actuarial
reduction in the annuity amount for retirement prior to normal retirement. age; and
(e) (5) the annuity amount payable for any allowable service under a nonformula plan of a
covered fund plan must not be affected but such service and covered salary must be used in the
above calculation.
(f) (d) This section shall does not apply to any person whose final termination
from the last public service under a covered fund plan is prior to May 1, 1975.
(g) (e) For the purpose of computing annuities under this section the formula percentages
accrual rates used by any covered fund plan, except the public employees police and fire
fund plan and the state patrol retirement fund plan, must not exceed the percent
specified in section 356.19, subdivision 4, per year of service for any year of service or fraction thereof. The
formula percentage accrual rate used by the public employees police and fire fund
plan and the state patrol retirement fund plan must not exceed the percent specified in
section 356.19, subdivision 6, per year of service for any year of service or fraction thereof. The formula
percentage accrual rate or rates used by the legislators retirement plan and the elective state officers
retirement plan must not exceed 2.5 percent, but this limit does not apply to the adjustment provided under
section 3A.02, subdivision 1, paragraph (c), or 352C.031, paragraph (b).
(h) (f) Any period of time for which a person has credit in more than one of the covered
funds plans must be used only once for the purpose of determining total allowable service.
(i) (g) If the period of duplicated service credit is more than six months one-half
year, or the person has credit for more than six months one-half year, with each of the
funds plans, each fund shall plan must apply its formula to a prorated service
credit for the period of duplicated service based on a fraction of the salary on which deductions were paid to that fund
for the period divided by the total salary on which deductions were paid to all funds plans for the
period.
(j) (h) If the period of duplicated service credit is less than six months one-half
year, or when added to other service credit with that fund plan is less than six months
one-half year, the service credit must be ignored and a refund of contributions made to the person in accord
with that fund's plan's refund provisions.
Sec. 45. [356.90] [COMBINED PAYMENT.]
(a) The public employees retirement association and the Minnesota state retirement system are permitted to combine payments to retirees. The total payment must be equal to the amount that is payable if payments were kept separate. The retiree must agree, in writing, to have the payment combined.
(b) Each plan must calculate the benefit amounts under the laws governing the plan and the required reserves and future mortality losses or gains must be paid or accrued to the plan from which the service was earned. Each plan must account for their portion of the payment separately, and there may be no additional liabilities realized by either fund.
(c) The fund making payment would be responsible for issuing one payment, making address changes, tax withholding changes, and other administrative functions needed to process the payment.
Sec. 46. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall change the term "six months" to "one-half year" wherever it appears in Minnesota Statutes, sections 356.302 and 356.303.
Sec. 47. [REPEALER.]
Minnesota Statutes 1998, sections 353.024; and 354.52, subdivision 2, are repealed.
Sec. 48. [EFFECTIVE DATE.]
(a) Sections 1 to 47 are effective on July 1, 2000.
(b) Section 26 is not intended to increase or decrease any surviving spouse benefit compared to the surviving spouse benefit payable immediately prior to July 1, 2000.
ARTICLE 4
MILITARY SERVICE CREDIT
PURCHASE AUTHORIZATION
Section 1. [352.275] [UNCREDITED MILITARY SERVICE CREDIT PURCHASE.]
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A state employee who has at least three years of allowable service with the Minnesota state retirement system and who performed service in the United States armed forces before becoming a state employee, or who failed to obtain service credit for a military leave of absence under section 352.27, is entitled to purchase allowable service credit for the initial period of enlistment, induction, or call to active duty without any voluntary extension by making payment under section 356.55 if the employee is not entitled to receive a current or deferred retirement annuity from a United States armed forces pension plan and has not purchased service credit from any other defined benefit public employee pension plan for the same period of service.
Subd. 2. [APPLICATION AND DOCUMENTATION.] An employee who desires to purchase service credit under subdivision 1 must apply with the executive director to make the purchase. The application must include all necessary documentation of the employee's qualifications to make the purchase, signed written permission to allow the executive director to request and receive necessary verification of applicable facts and eligibility requirements, and any other relevant information that the executive director may require.
Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit for the purchase period must be granted by the Minnesota state retirement system to the purchasing employee upon receipt of the purchase payment amount. Payment must be made before the employee's effective date of retirement.
Sec. 2. Minnesota Statutes 1998, section 352B.01, is amended by adding a subdivision to read:
Subd. 3a. [UNCREDITED MILITARY SERVICE CREDIT PURCHASE.] (a) A member who has at least three years of allowable service with the state patrol retirement plan under subdivision 3 and who performed service in the United States armed forces before becoming a member is entitled to purchase allowable service credit for the initial period of enlistment, induction, or call to active duty without any voluntary extension by making payment under section 356.55, if the employee is not entitled to receive a current or deferred retirement annuity from a United States armed forces pension plan and has not purchased service credit from any other defined benefit public employee pension plan for the same period of service.
(b) A member who desires to purchase service credit under paragraph (a) must apply with the executive director to make the purchase. The application must include all necessary documentation of the member's qualifications to make the purchase, signed written permission to allow the executive director to request and receive necessary verification of applicable facts and eligibility requirements, and any other relevant information that the executive director may require.
(c) Allowable service credit for the purchase period must be granted by the state patrol retirement plan to the purchasing employee upon receipt of the purchase payment amount. Payment must be made before the effective date of retirement of the member.
Sec. 3. Minnesota Statutes 1998, section 353.01, is amended by adding a subdivision to read:
Subd. 16a. [UNCREDITED MILITARY SERVICE CREDIT PURCHASE.] (a) A public employee who has at least three years of allowable service with the public employees retirement association or the public employees police and fire plan and who performed service in the United States armed forces before becoming a public employee, or who failed to obtain service credit for a military leave of absence under subdivision 16, paragraph (h), is entitled to purchase allowable service credit for the initial period of enlistment, induction, or call to active duty without any voluntary extension by making payment under section 356.55 if the public employee is not entitled to receive a current or deferred retirement annuity from a United States armed forces pension plan and has not purchased service credit from any other defined benefit public employee pension plan for the same period of service.
(b) A public employee who desires to purchase service credit under paragraph (a) must apply with the executive director to make the purchase. The application must include all necessary documentation of the public employee's qualifications to make the purchase, signed written permission to allow the executive director to request and receive necessary verification of applicable facts and eligibility requirements, and any other relevant information that the executive director may require.
(c) Allowable service credit for the purchase period must be granted by the public employees association or the public employees police and fire plan, whichever applies, to the purchasing public employee upon receipt of the purchase payment amount. Payment must be made before the effective date of retirement of the public employee.
Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.]
(a) Sections 1, 2, and 3 are effective on the day following final enactment.
(b) Sections 1, 2, and 3 are repealed on May 16, 2003.
ARTICLE 5
RETIREMENT HEALTH CARE PROVISIONS
Section 1. [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE TASK FORCE.]
(a) The commissioner of employee relations shall convene a task force on postretirement and active employee health care. The task force shall identify strategies for providing postretirement and active employee health care coverage for public employees and make recommendations regarding the most appropriate and efficient manner for providing postretirement and active employee health care.
(b) One-half of the task force membership must be composed of employees and the other half of the membership must be composed of employers. The task force must include, but is not limited to, the following:
(1) a representative of the department of employee relations;
(2) a representative of the Minnesota state retirement system;
(3) a representative of the teachers retirement association;
(4) a representative of the public employees retirement association;
(5) a representative of the first class city teacher retirement fund associations;
(6) a representative of the first class city police and fire department relief associations;
(7) a representative of the Minneapolis employees retirement fund;
(8) a representative of the legislative coordinating commission subcommittee on employee relations;
(9) one representative each from the Minnesota school boards association, Minnesota service cooperatives, the association of Minnesota counties, the Minnesota association of townships, and the league of Minnesota cities;
(10) representatives of the exclusive representatives of affected public employees; and
(11) representatives of major public employers.
(c) The task force shall report its findings and recommendations to the legislature by November 15, 2000. The report shall address:
(1) alternative methods of providing and paying for postretirement and active employee health care;
(2) the estimated cost of providing postretirement and active employee health care under various alternatives, including statewide, regional, or market alternatives;
(3) the most efficient administrative structure for providing for postretirement and active employee health care; and
(4) issues of adverse selection, cost containment, consumer choice, and options for dealing with other employee concerns.
(d) The task force shall conduct the study and assemble data in a manner that will provide for the ability to conduct analysis for subsets of the groups being studied by employer and employee types.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on the day following final enactment.
ARTICLE 6
MSRS-CORRECTIONAL PLAN
MEMBERSHIP INCLUSIONS
Section 1. Minnesota Statutes 1998, section 352.91, subdivision 3c, is amended to read:
Subd. 3c. [NURSING PERSONNEL.] (a) "Covered correctional service" means service by a state employee in one of the employment positions at a correctional facility or at the Minnesota security hospital specified in paragraph (b), provided that at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner, unless the person elects to retain the current retirement coverage under Laws 1996, chapter 408, article 8, section 21.
(b) The employment positions are as follows:
(1) registered nurse - senior;
(3) registered nurse - principal; and
(4) licensed practical nurse 2; and
(5) registered nurse practitioner.
Sec. 2. Minnesota Statutes 1998, section 352.91, subdivision 3d, is amended to read:
Subd. 3d. [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered correctional service" means service by a state employee in one of the employment positions at a correctional facility or at the Minnesota security hospital specified in paragraph (b), provided that at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner, unless the person elects to retain the current retirement coverage under Laws 1996, chapter 408, article 8, section 21.
(b) The employment positions are as follows: baker, chemical dependency counselor supervisor, chief cook, cook, cook coordinator, corrections behavior therapist, corrections behavior therapist specialist, corrections parent education coordinator, corrections security caseworker, corrections security caseworker career, corrections teaching assistant, dentist, electrician supervisor, general repair worker, library/information research services specialist, library/information research services specialist senior, plumber supervisor, psychologist 3, recreation therapist, recreation therapist coordinator, recreation program assistant, recreation therapist senior, stores clerk senior, water treatment plant operator, work therapy technician, work therapy assistant, work therapy program coordinator.
(c) "Covered correctional service" also means service as the director or as an assistant group supervisor of the Phoenix/Pomiga treatment/behavior change program of the department of corrections.
Sec. 3. Minnesota Statutes 1998, section 352.91, is amended by adding a subdivision to read:
Subd. 3f. [ADDITIONAL DEPARTMENT OF HUMAN SERVICES PERSONNEL.] (a) "Covered correctional service" means service by a state employee in one of the employment positions specified in paragraph (b) at the Minnesota security hospital or the Minnesota sexual psychopathic personality treatment center, provided that at least 75 percent of the employee's working time is spent in direct contact with patients and the fact of this direct contact is certified to the executive director by the commissioner of human services.
(b) The employment positions are:
(1) behavior analyst 2;
(2) licensed practical nurse 1;
(3) office and administrative specialist senior;
(4) psychologist 2;
(5) social worker specialist;
(6) behavior analyst 3; and
(7) social worker senior.
Sec. 4. Minnesota Statutes 1998, section 352.91, is amended by adding a subdivision to read:
Subd. 3g. [ADDITIONAL CORRECTIONS DEPARTMENT PERSONNEL.] (a) "Covered correctional service" means service by a state employee in one of the employment positions at the designated Minnesota correctional facility specified in paragraph (b), provided that at least 75 percent of the employee's working time is spent in direct contact with inmates and the fact of this direct contact is certified to the executive director by the commissioner of corrections.
(b) The employment positions and correctional facilities are:
(1) corrections discipline unit supervisor, at the Minnesota correctional facility-Faribault, the Minnesota correctional facility-Lino Lakes, the Minnesota correctional facility-Oak Park Heights, and the Minnesota correctional facility-St. Cloud;
(2) dental assistant registered, at the Minnesota correctional facility-Faribault, the Minnesota correctional facility-Lino Lakes, the Minnesota correctional facility-Moose Lake, the Minnesota correctional facility-Oak Park Heights, and the Minnesota correctional facility-Red Wing;
(3) dental hygienist, at the Minnesota correctional facility-Shakopee;
(4) psychologist 2, at the Minnesota correctional facility-Faribault, the Minnesota correctional facility-Lino Lakes, the Minnesota correctional facility-Moose Lake, the Minnesota correctional facility-Oak Park Heights, the Minnesota correctional facility-Red Wing, the Minnesota correctional facility-St. Cloud, the Minnesota correctional facility-Shakopee, and the Minnesota correctional facility-Stillwater; and
(5) sentencing to service crew leader involved with the inmate community work crew program, at the Minnesota correctional facility-Faribault and the Minnesota correctional facility-Lino Lakes.
Sec. 5. [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN PERSONS.]
Subdivision 1. [ELECTION OF PRIOR STATE SERVICE COVERAGE.] (a) An employee who has future retirement coverage transferred to the correctional employees retirement plan under section 1, 3, or 4, or an employee who has retirement coverage for past correctional service transferred to the correctional employees retirement plan under sections 1 to 4, is entitled to elect to obtain prior service credit for eligible state service performed after June 30, 1975, and before the first day of the first full pay period beginning after June 30, 2000, with the department of corrections or the department of human services at the Minnesota security hospital or the Minnesota sexual psychopathic personality treatment center. All eligible prior service credit must be purchased.
(b) For purposes of section 1, 3, or 4, eligible state service with the department of corrections or the department of human services is any prior period of continuous service after June 30, 1975, performed as an employee of the department of corrections or the department of human services that would have been eligible for the correctional employees retirement plan coverage under section 1, 3, or 4 if that prior service had been performed after the first day of the first full pay period beginning after June 30, 2000, rather than before that date. Service is continuous if there has been no period of discontinuation of eligible state service for a period greater than 180 calendar days. For purposes of section 2, paragraph (c), eligible state service is any period of service on or after the date which the employee started employment with the Phoenix treatment/behavior change program in a position specified in Minnesota Statutes, section 352.91, subdivision 3d, paragraph (c), in which at least 75 percent of the employee's working time is determined to have been spent in direct contact with program participants, and the date the employee joined the correctional employees plan.
(c) The commissioner of corrections or the commissioner of human services shall certify eligible state service to the executive director of the Minnesota state retirement system.
(d) A covered correctional plan employee employed on July 1, 2000, who has past service in a job classification covered under sections 1 to 4 on July 1, 2000, is entitled to purchase the past service if the applicable department certifies that the employee met the eligibility requirements for coverage. The employee shall pay the difference between the employee contributions actually paid during the period and what should have been paid under the correctional employees retirement plan. Payment for past service must be completed by June 30, 2002.
Subd. 2. [PAYMENT FOR PAST SERVICE.] (a) An employee electing to obtain prior service credit
under subdivision 1 must pay an additional employee contribution for that prior service. The additional member
contribution is the contribution differential percentage applied to the actual salary paid to the employee during the
period of the prior eligible state service, plus interest at the rate of six percent per annum, compounded annually. The contribution differential percentage is the difference between 4.9 percent of salary and the applicable employee contribution rate of the general state employees retirement plan during the prior eligible state service.
(b) The additional member contribution must be paid only in a lump sum. Payment must accompany the election to obtain prior service credit. No election of payment may be made by the person or accepted by the executive director after June 30, 2002.
Subd. 3. [TRANSFER OF ASSETS.] Assets must be transferred from the general state employees retirement plan to the correctional employees retirement plan, in an amount equal to the present value of benefits earned under the general employees retirement plan for each employee transferring to the correctional employees retirement plan, as determined by the actuary retained by the legislative commission on pensions and retirement in accordance with Minnesota Statutes, section 356.215. The transfer of assets must be made within 45 days after the employee elects to transfer coverage to the correctional employees retirement plan.
Subd. 4. [EFFECT OF THE ASSET TRANSFER.] Upon transfer of assets in subdivision 3, service credit in the general state employees plan of the Minnesota state retirement system is forfeited and may not be reinstated. The service credit and transferred assets must be credited to the correctional employees retirement plan.
Subd. 5. [PAYMENT OF ACTUARIAL CALCULATION COSTS.] (a) The expense of the legislative commission on pensions and retirement attributable to the calculations of its consulting actuary under subdivision 3 must be reimbursed by the department of corrections and the department of human services.
(b) The expense reimbursement under paragraph (a) must be allocated between the two departments in a manner that is jointly agreeable. If no allocation procedure is developed by the commissioner of corrections and the commissioner of human services, the cost must be allocated on an equally shared basis.
(c) Payment of the expense reimbursement to the legislative commission on pensions and retirement is due 30 days after the receipt of the reimbursement request from the executive director of the legislative commission on pensions and retirement.
Sec. 6. [REPEALER.]
Minnesota Statutes 1998, section 352.91, subdivision 4, is repealed.
Sec. 7. [EFFECTIVE DATE.]
Sections 1 to 6 are effective July 1, 2000.
ARTICLE 7
PERA AND PERA-P&F MEMBERSHIP INCLUSIONS
Section 1. Minnesota Statutes 1999 Supplement, section 353.01, subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following public employees shall not participate as members of the association with retirement coverage by the public employees retirement plan or the public employees police and fire retirement plan:
(1) elected public officers, or persons appointed to fill a vacancy in an elective office, who do not elect to participate in the association by filing an application for membership;
(3) patient and inmate personnel who perform services in charitable, penal, or correctional institutions of a governmental subdivision;
(4) employees who are hired for a temporary position under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days in the same governmental subdivision, but not those employees who are hired for an unlimited period but are serving a probationary period. If the period of employment extends beyond six consecutive months and the employee earns more than $425 from one governmental subdivision in any one calendar month, the department head shall report the employee for membership and require employee deductions be made on behalf of the employee under section 353.27, subdivision 4.
Membership eligibility of an employee who resigns or is dismissed from a temporary position and within 30 days accepts another temporary position in the same governmental subdivision is determined on the total length of employment rather than on each separate position. Membership eligibility of an employee who holds concurrent temporary and nontemporary positions in one governmental subdivision is determined by the length of employment and salary of each separate position;
(5) employees whose actual salary from one governmental subdivision does not exceed $425 per month, or whose annual salary from one governmental subdivision does not exceed a stipulation prepared in advance, in writing, that the salary must not exceed $5,100 per calendar year or per school year for school employees for employment expected to be of a full year's duration or more than the prorated portion of $5,100 per employment period for employment expected to be of less than a full year's duration;
(6) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster;
(7) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota state retirement system, the teachers retirement association, the Duluth teachers retirement fund association, the Minneapolis teachers retirement association, the St. Paul teachers retirement fund association, the Minneapolis employees retirement fund, or any police or firefighters relief association governed by section 69.77 that has not consolidated with the public employees retirement association, or any local police or firefighters consolidation account but who have not elected the type of benefit coverage provided by the public employees police and fire fund under sections 353A.01 to 353A.10, or any persons covered by section 353.665, subdivision 4, 5, or 6, who have not elected public employees police and fire plan benefit coverage. This clause must not be construed to prevent a person from being a member of and contributing to the public employees retirement association and also belonging to and contributing to another public pension fund for other service occurring during the same period of time. A person who meets the definition of "public employee" in subdivision 2 by virtue of other service occurring during the same period of time becomes a member of the association unless contributions are made to another public retirement fund on the salary based on the other service or to the teachers retirement association by a teacher as defined in section 354.05, subdivision 2;
(8) persons who are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended through January 1, 1987, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;
(9) full-time students who are enrolled and are regularly attending classes at an accredited school, college, or university and who are part-time employees as defined by a governmental subdivision;
(10) resident physicians, medical interns, and pharmacist residents and pharmacist interns who are serving in a degree or residency program in public hospitals;
(11) students who are serving in an internship or residency program sponsored by an accredited educational institution;
(12) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;
(13) foreign citizens working for a governmental subdivision with a work permit of less than three years, or an H-1b visa valid for less than three years of employment. Upon notice to the association that the work permit or visa extends beyond the three-year period, the foreign citizens are eligible for membership from the date of the extension;
(14) public hospital employees who elected not to participate as members of the association before 1972 and who did not elect to participate from July 1, 1988, to October 1, 1988;
(15) except as provided in section 353.86, volunteer ambulance service personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance service personnel may still qualify as public employees under subdivision 2 and may be members of the public employees retirement association and participants in the public employees retirement fund or the public employees police and fire fund on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;
(16) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in
activities undertaken as part of volunteer firefighter duties; provided that a person who is a volunteer firefighter may
still qualify as a public employee under subdivision 2 and may be a member of the public employees retirement
association and a participant in the public employees retirement fund or the public employees police and fire fund
on the basis of compensation received from public employment activities other than those as a volunteer firefighter;
and
(17) pipefitters and associated trades personnel employed by independent school district No. 625, St. Paul, with coverage by the pipefitters local 455 pension plan under a collective bargaining agreement who were either first employed after May 1, 1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 12; and
(18) electrical workers, plumbers, carpenters, and associated trades personnel employed by independent school district No. 625, St. Paul, or the city of St. Paul, with coverage by the electrical workers local 110 pension plan, the united association plumbers local 34 pension plan, or the carpenters local 87 pension plan under a collective bargaining agreement who were either first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under section 5.
Sec. 2. Minnesota Statutes 1998, section 353.64, is amended by adding a subdivision to read:
Subd. 11. [PENSION COVERAGE FOR CERTAIN TRIBAL POLICE OFFICERS EXERCISING STATE ARREST POWERS.] (a) The governing body of a tribal police department which is exercising state arrest powers under section 626.90, 626.91, 626.92, or 626.93 may request by resolution to the executive director that its police officers be considered public employees under section 353.01, subdivision 2, be considered a police officer under section 353.64, subdivision 1, and become members of the public employees police and fire retirement plan and that the tribal police department be considered a governmental subdivision under section 353.01, subdivision 6.
(b) The executive director of the association must approve the request by a tribal police department under paragraph (a) if a ruling made by the federal Internal Revenue Service provides that:
(1) the tribal police department is an agency or instrumentality of the state of Minnesota for purposes of enforcing state law; and
(2) contributions made by the tribal police department to a retirement plan on behalf of employees of the tribal police department are contributions to a governmental plan within the meaning of section 414(d) of the federal Internal Revenue Code.
(c) Following the approval of the request by the executive director, the head of the police department or that
person's designee must immediately report for membership in the police and fire fund a person who is employed as
a full-time or part-time police officer in a position that meets the conditions in sections 353.01, subdivision 2a, and
353.64, subdivisions 1 and 2. The police department head or that person's designee must deduct the employee contributions from the salary of each eligible police officer as required by section 353.65, subdivision 2, and make the employer contributions required by section 353.65, subdivision 3. The head of the police department or that person's designee must meet the reporting requirements in section 353.65, subdivision 4.
Sec. 3. [353.666] [PAST SERVICE CREDIT FOR CERTAIN MEMBERS EXTENDED COVERAGE.]
(a) A member to whom public employees police and fire retirement plan membership was extended under section 353.64, subdivision 11, may receive retroactive service credit in the public employees police and fire retirement plan for service as a tribal police officer rendered before the effective date of membership of the tribal police department employee in the police and fire fund, provided that the employee and the police department did not make contributions into a qualified tax-deferred retirement plan for that employment period.
(b) The request for retroactive coverage must be in writing and must be filed with the association within 60 days of when police and fire fund membership commenced. The prior service credit purchase payment is governed by section 356.55, except that the member must pay an amount equal to the employee salary deductions. The employee salary deductions for the retroactive period must be based on the police and fire pension plan member contribution rates in effect when the service was rendered and applied to the salary amount that was earned and paid to the police officer. The employer must pay the balance of the prior service credit purchase payment amount within 30 days of the member contribution payment.
Sec. 4. Laws 1965, chapter 705, section 1, subdivision 4, as amended by Laws 1995, First Special Session chapter 3, article 8, section 14, and Laws 1997, chapter 241, article 2, section 8, is amended to read:
Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 625; APPLICABILITY OF CERTAIN LAWS.] (a) As of July 1, 1965, the organization, operation, maintenance and conduct of the affairs of the converted district shall be governed by general laws relating to independent districts, except as otherwise provided in Extra Session Laws 1959, Chapter 71, as amended, and all special laws and charter provisions relating only to the converted district are repealed.
(b) Where an existing pension law is applicable to employees of the special district, such law shall continue to be applicable in the same manner and to the same extent to employees of the converted district. Notwithstanding this requirement, pipefitters and associated trades personnel with coverage by the pipefitters local 455 pension plan under a collective bargaining agreement who either were first employed after May 1, 1997, or, if first employed before May 2, 1997, elected exclusion from coverage under section 12 and electrical workers, carpenters, and associated trades personnel with coverage by the electrical workers local 110 pension plan, the united association plumbers local 34 pension plan, or the carpenters local 87 pension plan under a collective bargaining agreement who either were first employed after May 1, 2000, or, if first employed before May 2, 2000, elected exclusion from coverage under section 5, are not covered by the public employees retirement association.
(c) General laws applicable to independent school districts wholly or partly within cities of the first class shall not be applicable to the converted district.
(d) The provision of the statutes applicable only to teachers retirement fund associations in cities of the first class, limiting the amount of annuity to be paid from public funds, limiting the taxes to be levied to carry out the plan of such associations, and limiting the amount of annuities to be paid to beneficiaries shall not be applicable to such converted district, but the statutes applicable to such special district prior to the conversion shall continue to be applicable and the pension plan in operation prior to the conversion shall continue in operation until changed in accordance with law, and the teacher tenure law applicable to the special district shall continue to apply to the converted district in the same manner and to the same extent to teachers in the converted district; provided further, where existing civil service provisions of any law or charter are applicable to special district employees, such provision may continue to be applicable in the same manner and to the same extent to employees of the converted district, unless the board and city governing body each adopt a resolution declaring that civil service bureau (city human resources department) functions would be more efficiently and effectively administered separately in each
jurisdiction. Notwithstanding any contrary provision of Extra Session Laws 1959, Chapter 71, as amended, if there was in the special district a teachers retirement fund association operating and existing under the provisions of Laws 1909, Chapter 343, and all acts amendatory thereof, then such teachers retirement fund association shall continue to exist and operate in the converted district under and to be subject to the provisions of Laws 1909, Chapter 343, and all acts amendatory thereof, to the same extent and in the same manner as before the conversion, and, without limiting the generality of the foregoing, such teachers retirement fund association shall continue, after the conversion as before the conversion, to certify to the same authorities the amount necessary to raise by taxation in order to carry out its retirement plan, and it shall continue, after the conversion as before the conversion, to be the duty of said authorities to include in the tax levy for the ensuing year a tax in addition to all other taxes sufficient to produce so much of the sums so certified as said authorities shall approve, and such teachers retirement fund association shall not be subject after the conversion to any limitation on payments to any beneficiary from public funds or on taxes to be levied to carry out the plan of such association to which it was not subject before the conversion.
Sec. 5. [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN TRADES PERSONNEL.]
Subdivision 1. [EXCLUSION ELECTION.] (a) An electrical worker, plumber, carpenter, or an associated trades person who is employed by independent school district No. 625, St. Paul, or the city of St. Paul, on the effective date of this section and who has pension coverage by the electrical workers 110 pension plan, the united association plumbers local 34 pension plan, or the carpenters local 87 pension plan under a collective bargaining agreement may elect to be excluded from pension coverage by the public employees retirement association.
(b) The exclusion election under this section must be made in writing on a form prescribed by the executive director of the public employees retirement association and must be filed with the executive director. The exclusion election is irrevocable. Authority to make the coverage exclusion expires on January 1, 2001.
Subd. 2. [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A person who has less than three years of allowable service in the public employees retirement association and who elects the pension coverage exclusion under subdivision 1 is entitled to immediately apply for a refund under Minnesota Statutes, section 353.34, subdivisions 1 and 2, following the effective date of the exclusion election.
Subd. 3. [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the refund under subdivision 2, a person who elects the pension coverage exclusion under subdivision 1 is entitled to a deferred retirement annuity under Minnesota Statutes, sections 353.34, subdivision 3, and 353.71, subdivision 2, based on any length of allowable service credit under Minnesota Statutes, section 353.01, subdivision 16, to the credit of the person as of the date of the coverage exclusion election.
Sec. 6. [PERA GENERAL AND PERA P&F; PRIOR SERVICE CREDIT PURCHASE.]
Subdivision 1. [ELIGIBILITY.] (a) Except as restricted under subdivision 4, an eligible person described in paragraph (b) is entitled to purchase allowable service credit for the period or periods specified in paragraph (d) in the public employees retirement association general plan. Except as restricted under subdivision 4, an eligible person described in paragraph (c) is entitled to purchase allowable service credit for the period or periods specified in paragraph (d) in the public employees retirement association police and fire plan.
(b) An eligible person is a person who:
(1) is a full-time salaried employee or permanent part-time salaried employee of the Spring Lake Park Fire Department, Incorporated;
(2) became a member of the public employees retirement association general plan due to that employment on June 1, 1999; and
(3) was employed by the Spring Lake Park Fire Department, Incorporated, during all or part of the period from January 1, 1996, to June 1, 1999.
(c) An eligible person is a person who meets requirements specified in paragraph (b), clauses (1) and (3), and who became a member of the public employees retirement association police and fire plan or the public employees retirement association general plan, whichever applies, due to applicable employment with the Spring Lake Park Fire Department, Incorporated, on June 1, 1999.
(d) The period or periods eligible for service credit purchase in the public employees retirement association general plan or public employees retirement association police and fire plan, as applicable, is the period or periods from January 1, 1996, to June 1, 1999, during which an eligible individual described in paragraph (b) or (c), as applicable, provided service to the Spring Lake Park Fire Department, Incorporated, which would have been eligible service for coverage by the applicable public employees retirement association plan if that service had been provided on or after June 1, 1999, rather than before.
Subd. 2. [PAYMENT REQUIREMENTS.] Minnesota Statutes, section 356.55, applies to service credit purchases authorized under this section.
Subd. 3. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An eligible person described in subdivision 1, paragraph (b) or (c), must provide any documentation related to eligibility to make this service credit purchase required by the executive director of the public employees retirement association.
(b) Allowable service credit for the purchase period or periods must be granted in the applicable public employees retirement association plan on behalf of the eligible person upon receipt of the prior service credit purchase payment amount.
Subd. 4. [RESTRICTIONS.] (a) An eligible person as specified in subdivision 1, paragraph (c), is not authorized to purchase service credit in the public employees retirement association police and fire plan under this section if the eligible person, or the eligible person and the Spring Lake Park Fire Department, Incorporated, made contributions on that person's behalf to the social security old age insurance program during all or part of the period from January 1, 1996, to June 1, 1999, and coverage under that program for the applicable period remains in effect.
(b) If paragraph (a) applies to the eligible person, that eligible person may purchase service credit under this section in the public employees retirement association general plan.
(c) If contributions are made by an eligible person specified in paragraph (a) or by that eligible person and the Spring Lake Park Fire Department, Incorporated, or a successor organization, to the social security old age insurance program after June 1, 1999, due to employment for which coverage in the public employees retirement association police and fire plan commenced on June 1, 1999, coverage by the public employees retirement association police and fire plan terminates and coverage by the public employees retirement association general plan commences, if the employment otherwise meets requirements in law for that coverage. If public employees retirement association police and fire plan contributions have been received on or after June 1, 1999, for any periods where contributions were also made to the social security old age insurance program as specified in this paragraph, the contributions to the public employees retirement association police and fire plan for the applicable period or periods on or after June 1, 1999, must be treated as contributions made in error under Minnesota Statutes, section 353.27, subdivision 7a.
Sec. 7. [EFFECTIVE DATE.]
(a) Sections 2 and 3 are effective on July 1, 2000.
(b) Section 6 is effective on the day following final enactment.
(c) Sections 1, 4, and 5 are effective for electrical workers, plumbers, and associated trades personnel employed by independent school district No. 625, St. Paul, on the day following approval by majority vote of the board of independent school district No. 625, St. Paul, and compliance with Minnesota Statutes, section 645.021.
(d) Sections 1, 4, and 5 are effective for electrical workers, plumbers, and associated trades personnel employed by the city of St. Paul on the day following approval by majority vote of the St. Paul city council and compliance with Minnesota Statutes, section 645.021.
ARTICLE 8
PENSION COVERAGE UPON
EMPLOYMENT PRIVATIZATION
Section 1. Minnesota Statutes 1999 Supplement, section 353F.02, subdivision 5, is amended to read:
Subd. 5. [OTHER PUBLIC EMPLOYING UNIT.] "Other public employing unit" means:
(1) Metro II, a joint powers organization formed under section 471.59; and
(2) the St. Paul civic center authority.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on the first day of the month next following certification by the executive director of the public employees retirement association that the actuarial accrued liability of the special benefit coverage proposed for extension to the privatized St. Paul civic center authority employees under this article does not exceed the actuarial gain otherwise to be accrued by the public employees retirement association, as calculated by the consulting actuary retained by the legislative commission on pensions and retirement. The cost of the actuarial calculations must be borne by the St. Paul civic center authority.
ARTICLE 9
FORMER LOCAL POLICE AND FIRE CONSOLIDATION
ACCOUNT MODIFICATIONS AND CORRECTIONS
Section 1. Minnesota Statutes 1999 Supplement, section 423A.02, subdivision 1b, is amended to read:
Subd. 1b. [ADDITIONAL AMORTIZATION STATE AID.] (a) Annually, on October 1, the commissioner of revenue shall allocate the additional amortization state aid transferred under section 69.021, subdivision 11, to:
(1) all police or salaried firefighter relief associations governed by and in full compliance with the requirements of section 69.77, that had an unfunded actuarial accrued liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding December 31;
(2) all local police or salaried firefighter consolidation accounts governed by chapter 353A that are certified by the executive director of the public employees retirement association as having for the current fiscal year an additional municipal contribution amount under section 353A.09, subdivision 5, paragraph (b), and that have implemented section 353A.083, subdivision 1, if the effective date of the consolidation preceded May 24, 1993, and that have implemented section 353A.083, subdivision 2, if the effective date of the consolidation preceded June 1, 1995; and
(3) the public employees police and fire fund on behalf of municipalities that received amortization
aid in 1999 and are required to make an additional municipal contribution under section 353.665, subdivision
8, for the duration of the required additional contribution.
(b) The commissioner shall allocate the state aid on the basis of the proportional share of the relief association or consolidation account of the total unfunded actuarial accrued liability of all recipient relief associations and consolidation accounts as of December 31, 1993, for relief associations, and as of June 30, 1994, for consolidation accounts.
(c) Beginning October 1, 2000, and annually thereafter, the commissioner shall allocate the state aid,
including any state aid in excess of the limitation in subdivision 4, on the following basis
of:
(1) 64.5 percent to the public employees police and fire fund or local consolidation account,
whichever applies, on behalf of municipalities to which section 353.665, subdivision 8, paragraph (b), or
353A.09, subdivision 5, paragraph (b), apply for distribution in accordance with paragraph (b) and subject to the
limitation in subdivision 4,;
(2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued liability in the actuarial
valuation prepared under sections 356.215 and 356.216 as of the preceding December 31 for the Minneapolis police
relief association or the Minneapolis fire department relief association,; and
(3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding December 31 for the Virginia fire department relief association.
In the event that If there is no unfunded actuarial accrued liability in both the Minneapolis police
relief association and the Minneapolis fire department relief association as disclosed in the most recent actuarial
valuations for the relief associations prepared under sections 356.215 and 356.216, the commissioner shall
allocate that 34.2 percent of the aid as follows: 49 percent to the Minneapolis teachers retirement fund association,
provided that, 21 percent to the St. Paul teachers retirement fund association, and 30 percent as
additional funding to support minimum fire state aid for volunteer firefighter relief associations. If there is no
unfunded actuarial accrued liability in the Virginia fire department relief association as disclosed in the most recent
actuarial valuation for the relief association prepared under sections 356.215 and 356.216, the commissioner shall
allocate that 1.3 percent of the aid as follows: 49 percent to the Minneapolis teachers retirement fund association,
21 percent to the St. Paul teachers retirement fund association, and 30 percent as additional funding to support
minimum fire state aid for volunteer firefighter relief associations. The allocation must be made by the commissioner
at the same time and under the same procedures as specified in subdivision 3. With respect to the Minneapolis
teachers retirement fund association or the St. Paul teachers retirement fund association, annually, beginning
on July 1, 2005, if a the applicable teacher's association five-year average time-weighted rate of
investment return does not equal or exceed the performance of a composite portfolio assumed passively managed
(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30
percent in domestic stock calculated using the formula under section 11A.04, clause (11), the aid allocation to
that retirement fund under this section ceases until the five-year annual rate of investment return equals
or exceeds the performance of a that composite portfolio., 21 percent to the St. Paul
teachers retirement fund association, provided that, annually, beginning on July 1, 2005, if a teacher's association
five-year average time-weighted rate of investment return does not equal or exceed the performance of a composite
portfolio assumed passively managed (indexed) invested ten percent in cash equivalents, 60 percent bonds and
similar debt securities, and 30 percent in domestic stock calculated using the formula under section 11A.04, clause
(11), the aid under this section ceases until the five-year annual rate of return equals or exceeds the performance of
a composite portfolio, and 30 percent as additional funding to support minimum fire state aid for volunteer firefighter
relief associations, with the allocation made at the same time and under the same procedures in subdivision 3. In
the event there is no actuarial accrued unfunded liability in the Virginia fire department relief association, the
commissioner shall allocate that 1.3 percent of the aid as follows: 49 percent to the Minneapolis teachers retirement
fund association, provided that, annually, beginning on July 1, 2005, if a teacher's association five-year average
time-weighted rate of investment return does not equal or exceed the performance of a composite portfolio assumed
passively managed (indexed) invested ten percent in cash equivalents, 60 percent bonds and similar debt securities,
and 30 percent in domestic stock calculated using the formula under section 11A.04, clause (11), the aid under this
section ceases until the five-year annual rate of return equals or exceeds the performance of a composite portfolio,
21 percent to the St. Paul teachers retirement fund association, provided that, annually, beginning on July 1, 2005,
if a teacher's association five-year average time-weighted rate of investment return does not equal or exceed the
performance of a composite portfolio assumed passively managed (indexed) invested ten percent in cash equivalents,
60 percent bonds and similar debt securities, and 30 percent in domestic stock calculated using the formula under
section 11A.04, clause (11), the aid under this section ceases until the five-year annual rate of return equals or
exceeds the performance of a composite portfolio, and 30 percent as additional funding to support minimum fire state
aid for volunteer firefighter relief associations, with the allocation made at the same time and under the same
procedures in subdivision 3.
(d) Additional amortization state aid payable to the public employees retirement association on behalf of a
municipality must be credited by the executive director of the public employees retirement association against any
additional municipal contribution to which the applicable municipality is obligated to make under section 353A.09,
subdivision 5, or under section 353.665, subdivision 8.
(e) The amounts required under this subdivision are annually appropriated to the commissioner of
revenue.
Sec. 2. Minnesota Statutes 1999 Supplement, section 423A.02, subdivision 4, is amended to read:
Subd. 4. [LIMIT ON CERTAIN TOTAL AID AMOUNTS.] (a) The total of amortization aid, supplemental
amortization aid, and additional amortization aid under this section payable to the executive director of the public
employees retirement association on behalf of a municipality to which section 353.665, subdivision 8, paragraph
(b), applies, may not exceed the amount of the additional municipal contribution payable by an individual
municipality under section 353.665, subdivision 8, paragraph (b).
(b) Any aid amount in excess of the limit under this subdivision for an individual municipality must be redistributed to the other municipalities to which section 353.665, subdivision 8, paragraph (b), applies. The excess aid must be distributed in proportion to each municipality's additional municipal contribution under section 353.665, subdivision 8, paragraph (b).
(c) When the total aid for each municipality under this section equals the limit under paragraph (a), any aid in
excess of the limit must be redistributed under subdivisions 1, 1a, and subdivision 1b.
Sec. 3. Minnesota Statutes 1999 Supplement, section 423A.02, subdivision 5, is amended to read:
Subd. 5. [TERMINATION OF STATE AID PROGRAMS.] The amortization state aid, supplemental amortization state aid, and additional amortization state aid programs terminate as of the December 31, next following the date of the actuarial valuation when the assets of the Minneapolis teachers retirement fund association equal the actuarial accrued liability of that plan and when the assets of the St. Paul teachers retirement fund association equal the actuarial accrued liability of that plan or December 31, 2009, whichever is later.
Sec. 4. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; ONE-TIME SPECIAL OPTIONAL ANNUITY ELECTION FOR CERTAIN FORMER CONSOLIDATION ACCOUNT RETIREES.]
Subdivision 1. [ELIGIBILITY.] An individual who was a deferred annuitant, a service pension annuitant, or who was receiving disability benefits from the relief association on the effective date of the consolidation of the applicable local police or paid firefighter relief association, and who chose annual adjustments applicable to the public employees retirement association police and fire plan in elections provided under Minnesota Statutes, section 353.615, subdivisions 5 and 6 or 353A.08, subdivision 1 or 2, may elect an optional annuity form under subdivision 2 to provide additional payments to a surviving spouse.
Subd. 2. [OPTIONAL ANNUITIES.] The optional annuity form may be either a 15 percent or a 25 percent joint and survivor annuity and is without reinstatement in the event of the surviving spouse predeceasing the member. The optional annuity forms must be actuarially equivalent to the service pension currently paid to the retired consolidated member without consideration of the value of survivor benefits payable under Minnesota Statutes, section 353B.11, and must be based upon the age of the member and the age of the spouse of the member as of October 1, 2000.
Subd. 3. [ADDITIONAL SURVIVOR BENEFIT.] An optional annuity under subdivision 2 is payable in addition to any applicable survivor benefit payable under Minnesota Statutes, section 353.11. An optional annuity under subdivision 2 when combined with applicable survivor benefits under Minnesota Statutes, section 353.11, must not exceed the benefit payable to the deceased service or disability pensioner immediately prior to death.
Subd. 4. [ELECTION.] (a) To be valid, an optional annuity form under subdivision 2 must be elected in writing on a form prescribed by the executive director of the public employees retirement association and signed by the eligible service pensioner or disabilitant before October 1, 2000. Once selected, the optional annuity is irrevocable.
(b) The executive director of the public employees retirement association shall provide counseling to members regarding the election of an optional annuity form under this section, including the impact on current benefit levels payable if an option annuity form is elected.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective on the day following final enactment.
ARTICLE 10
PERA LOCAL CORRECTIONAL RETIREMENT
PLAN MODIFICATIONS
Section 1. Minnesota Statutes 1999 Supplement, section 353E.02, is amended to read:
353E.02 [CORRECTIONAL SERVICE EMPLOYEES RETIREMENT PLAN MEMBERSHIP.]
Subdivision 1. [RETIREMENT COVERAGE.] Local government correctional service employees are members of the local government correctional service retirement plan established by this chapter.
Subd. 2. [LOCAL GOVERNMENT CORRECTIONAL SERVICE EMPLOYEE.] (a) A local
government correctional service employee, for purposes of subdivision 1, is a person who whom
the employer certifies:
(1) is employed in a county-administered jail or correctional facility or in a regional correctional facility
administered by multiple counties county correctional institution as a correctional guard or officer, a joint
jailer/dispatcher, or as a supervisor of correctional guards or officers or of joint jailers/dispatchers;
(2) spends at least 95 percent of the employee's working time in direct contact with persons confined in the
jail or facility, as certified in writing, in advance, by the employer to the executive director of the association
is directly responsible for the direct security, custody, and control of the county correctional institution and its
inmates;
(3) is expected to respond to incidents within the county correctional institution as part of the person's regular employment duties and is trained to do so; and
(3) (4) is a "public employee" as defined in section 353.01, but is not a member of the public
employees police and fire fund.
(b) The certification required under paragraph (a) must be made in writing on a form prescribed by the executive director of the public employees retirement association.
(c) A person who was a member of the local government correctional service retirement plan on the day before the effective date of this section remains a member of the plan after the effective date of this section for the duration of the person's employment in that county correctional institution position, even if the person's subsequent service in this position does not meet the requirements set forth in paragraph (a).
Subd. 3. [COUNTY CORRECTIONAL INSTITUTION.] A county correctional institution is:
(1) a jail administered by a county;
(2) a correctional facility administered by a county; or
(3) a regional correctional facility administered by or on behalf of multiple counties.
Sec. 2. Minnesota Statutes 1999 Supplement, section 353E.03, is amended to read:
353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.]
Subdivision 1. [MEMBER CONTRIBUTIONS.] A local government correctional service employee shall make
an employee contribution in an amount equal to 5.83 6.01 percent of salary.
Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall contribute for a local government correctional
service employee an amount equal to 8.75 9.02 percent of salary.
Sec. 3. [EFFECTIVE DATE.]
Section 1 is effective on the day following final enactment. Section 2 is effective on the first day of the first full pay period beginning after January 1, 2002.
ARTICLE 11
TEACHER RETIREMENT
AND RELATED CHANGES
Section 1. Minnesota Statutes 1998, section 122A.46, subdivision 1, is amended to read:
Subdivision 1. [TEACHERS DEFINED.] As used in this section, the term "teachers" shall have the meaning given it in section 122A.15, subdivision 1. The term "teachers" also includes any teacher in the classifications included in the professional state residential instructional unit, under section 179A.10, subdivision 2, clause (16).
Sec. 2. Minnesota Statutes 1998, section 122A.46, is amended by adding a subdivision to read:
Subd. 1a. [APPOINTING AUTHORITY.] For purposes of teachers included in the professional state residential instructional unit, the term "school board" includes the appointing authority as defined in section 43A.02, subdivision 5.
Sec. 3. Minnesota Statutes 1999 Supplement, section 354.536, subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A teacher who has at least three years of allowable service credit with the teachers retirement association is entitled to purchase up to ten years of allowable and formula service credit for nonprofit community-based corporation, private, or parochial school teaching service by making payment under section 356.55, provided that the teacher is not entitled to receive a current or deferred age and service retirement annuity or disability benefit from the applicable employer-sponsored pension plan and has not purchased service credit from the applicable defined benefit employer-sponsored pension plan for that service.
Sec. 4. [354A.051] [MTRFA COVERAGE FOR UNION BUSINESS AGENTS.]
Subdivision 1. [AUTHORIZATION.] A member of the Minneapolis teachers retirement fund association on a leave of absence from a teaching position with special school district No. 1, and who is employed by an employee organization representing Minneapolis teachers retirement fund association active members, may elect under subdivision 2 to be a member of the coordinated program of the association for service with that employee organization, subject to the limitations specified in subdivisions 3, 4, and 5.
Subd. 2. [ELECTION.] Except as indicated in subdivision 3, a person described in subdivision 1 must be covered by the Minneapolis teachers retirement fund association coordinated program for employment with the employer organization if the person files a written election to be covered with the executive director of the teachers retirement fund association within 90 days of first being employed by the employee organization, or within 90 days of the start of the first leave of absence due to service as an employee organization business agent, whichever is later.
Subd. 3. [WAIVER OF LEAVE COVERAGE.] Coverage under this section does not apply to any leave period or portion of a leave period for which a person has received service credit or is eligible to receive service credit for the leave period under any leave of absence provision in chapter 354A, any other applicable law, or bylaws or articles of incorporation of the association. The person may waive eligibility to receive service credit under a leave of absence provision and be covered by this section for the applicable period by filing a waiver with the executive director within 90 days of the start of the leave.
Subd. 4. [COVERED SALARY LIMITATION.] (a) The covered salary for an employee of the employee organization covered by the coordinated program of the Minneapolis teachers retirement fund association under this section is limited to the lesser of:
(1) the person's actual salary from the employee organization as defined in section 354A.011, subdivision 24; or
(2) 75 percent of the salary of the governor as set under section 15A.082.
(b) The limited covered salary determined under this paragraph must be used in determining member, employer, and employer additional contributions under section 354A.12, and in determining annuities and other benefits under sections 354A.30 to 354A.41 and chapter 356.
Subd. 5. [ANNUITY RECEIPT REQUIREMENTS.] A retirement annuity is only payable from the coordinated program of the Minneapolis teachers retirement fund association to a person described in subdivision 1 if the person has met all applicable requirements, including the termination by the person from employment by the employee organization and by the school district. The reemployed annuitant earnings limitation in section 354A.31, subdivision 3, applies if the person retires and is subsequently reemployed while an annuitant by the employee organization or by any other entity employing persons who are members of the applicable teachers retirement fund association by virtue of that employment.
Subd. 6. [CONTRIBUTION REQUIREMENTS.] The member, employer, and employer additional contributions required by section 354A.12 are the obligation of the person who elects coverage by the coordinated program of the Minneapolis teachers retirement fund association, but the employee organization may pay the employer and employer additional contributions. Contributions made by the person must be made by salary deduction. Contributions made by the employee organization must be made as provided in section 354A.12.
Subd. 7. [BOARD INELIGIBILITY.] A person employed by an employee organization who retains active membership in the teachers retirement fund association under this section is not eligible for election to the board of trustees of the teachers retirement fund association.
Sec. 5. Minnesota Statutes 1999 Supplement, section 354A.101, subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A teacher who has at least three years of allowable service credit with the teachers retirement fund association is entitled to purchase up to ten years of allowable service credit for nonprofit community-based corporation, private, or parochial school teaching service by making payment under section 356.55, provided that the teacher is not entitled to receive a current or deferred age and service retirement annuity or disability benefit from the applicable employer-sponsored pension plan and has not purchased service credit from the applicable defined benefit employer-sponsored pension plan for that service.
Sec. 6. [ELECTION OF COVERAGE BY EMPLOYEE OF EMPLOYEE ORGANIZATION REPRESENTING MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION ACTIVE MEMBERS.]
Subdivision 1. [ELIGIBILITY ELECTION.] Notwithstanding the election date requirements in
section 354A.051, subdivision 2, a person who is currently employed as a business agent by an employee
organization representing Minneapolis teachers retirement fund association active members and who has been on
a mobility leave or leaves from special school district No. 1 since March 23, 1998, may make a written election to
be covered under section
354A.051. To be valid, that written election must be on a form specified by the executive director of the Minneapolis teachers retirement fund association and must be filed with the executive director within 90 days following the effective date of this section.
Subd. 2. [PAYMENT REQUIREMENTS.] If a valid election is made under subdivision 1, an eligible individual under subdivision 1 is required to pay, in a lump sum within 90 days of the effective date of this section, any additional employee, employer, and employer additional contributions based on the eligible individual's salary and employment with the employee organization, as required by the election, compared to amounts previously paid or payable. These amounts are in addition to any amounts previously payable. The additional contribution requirements are to be computed from March 23, 1998, to the date payroll deductions are first made on the high contribution requirements. The lump sum payment under this subdivision must include 8.5 percent annual interest. The amounts required under this subdivision are the obligation of the eligible individual, but the employee organization may pay the additional employer and employer additional amounts with applicable interest.
Subd. 3. [SALARY CREDIT GRANT.] The additional salary credit is to be granted to the account of the eligible individual upon payment of amounts required under this section.
Sec. 7. [SPECIAL PART-TIME TEACHER PROGRAM AUTHORITY; CERTAIN TEACHERS.]
(a) Notwithstanding the requirement in Minnesota Statutes, section 354.66, subdivision 2, that part-time teacher program agreements must be executed before October 1 of the school year for which the teacher requests to make retirement contributions described in the part-time teacher program, an eligible teacher under paragraph (b) is authorized to participate in the part-time teacher program under Minnesota Statutes, section 354.66, during the 1999-2000 school year.
(b) An eligible teacher is a teacher:
(1) employed by school district No. 11 (Anoka-Hennepin);
(2) whose part-time teaching agreement under Minnesota Statutes, section 354.66, was executed after October 1, 1999, but before the end of the 1999-2000 school year; and
(3) was born on October 16, 1947, or October 19, 1957.
(c) If full-time equivalent employee contributions were not made for the full period covered by the part-time teaching agreement indicated under paragraph (b), any omission or deficiency in employee contributions must be paid by the employee on or before the due date of any payment required under Minnesota Statutes, section 354.66, subdivision 4.
(d) Notwithstanding Minnesota Statutes, section 354.66, subdivision 2, one-quarter of the fine required under that subdivision is waived if the part-time teaching agreement is filed with the teachers retirement association by May 30, 2000. If a part-time teaching agreement referred to under paragraph (b) is not filed with the teachers retirement association before July 1, 2000, the authority provided by this section is voided.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective on the day following final enactment.
ARTICLE 12
MNSCU PENSION COVERAGE
AND RELATED CHANGES
Section 1. Minnesota Statutes 1998, section 136F.43, subdivision 1, is amended to read:
Subdivision 1. [DEFINITION.] As used in this section, "teacher" means a person on the instructional or administrative staff of the state colleges and universities who is a member of the teachers retirement association under chapter 354, who is a member of a teachers retirement fund association under chapter 354A, or who is covered by the unclassified employees plan under chapter 352D or individual retirement account plan under chapter 354B. It shall not include a chancellor, deputy chancellor, or vice-chancellor.
Sec. 2. Minnesota Statutes 1998, section 136F.43, subdivision 2, is amended to read:
Subd. 2. [GRANTING AUTHORITY.] The board may grant an extended leave of absence without salary to a
full-time teacher who has been employed by the board for at least five years and has at least ten years of allowable
service as defined in section 354.05, subdivision 13 one or a combination of the retirement plans
specified in subdivision 1. The maximum duration of an extended leave of absence pursuant to this section shall
be determined by mutual agreement of the board and the teacher at the time the leave is granted and shall be at least
three but no more than five years. An extended leave of absence under this section shall be taken by mutual consent
of the board and the teacher. No teacher may receive more than one leave of absence under this section.
Sec. 3. Minnesota Statutes 1998, section 136F.43, subdivision 6, is amended to read:
Subd. 6. [ALTERNATE LEAVE.] The board may grant a teacher a leave of absence which is not subject to the provisions of this section and either section 354.094 or section 354A.091.
Sec. 4. Minnesota Statutes 1998, section 136F.45, subdivision 1a, is amended to read:
Subd. 1a. [SUBSEQUENT VENDOR CONTRACTS.] (a) The board may limit the number of vendors under subdivision 1.
(b) In addition to any other tax-sheltered annuity program investment options, the board may offer as an investment option the Minnesota supplemental investment fund administered by the state board of investment under section 11A.17.
(c) For the tax-sheltered annuity program vendor contracts to be executed for the period beginning
after July 1, 2000, the board shall actively solicit participation of and shall include as vendors lower expense
and "no-load" mutual funds or equivalent investment products as those terms are defined by the federal securities
and exchange commission. To the extent possible, in addition to a range of insurance annuity contract providers
and other mutual fund provider arrangements, the board must assure that no less than five insurance annuity
providers and no less than one nor more than three lower expense and "no-load" mutual funds or equivalent
investment products will be made available for direct-access by employee participants. To the extent that offering
a lower expense "no-load" product increases the total necessary and reasonable expenses of the program and if the
board is unable to negotiate a rebate of fees from the mutual fund or equivalent investment product providers, the
board may charge the participants utilizing the lower expense "no-load" mutual fund products a fee to cover those
expenses. The participant fee may not exceed one percent of the participant's annual contributions or $20 per
participant per year, whichever is greater. Any excess fee revenue generated under this subdivision must be
reimbursed to participant accounts in the manner provided in subdivision 3a.
Sec. 5. [354.539] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO PURCHASE SERVICE CREDIT.]
(a) Unless prohibited by or subject to a penalty under federal law, a teacher who is a participant in the college supplemental retirement plan established under chapter 354C may utilize the teacher's supplemental plan account to purchase service credit under sections 354.53, 354.533, 354.534, 354.535, 354.536, 354.537, and 354.538.
(b) At the request of a member, if determined by the executive director to be eligible to purchase service credit, the executive director shall notify the board of the Minnesota state colleges and universities system of the cost of the purchase and shall request the transfer of funds from the member's college supplemental retirement account to the teachers retirement association. Upon receipt of the full prior service credit purchase payment amount, the teachers retirement association shall grant the requested allowable and formula service credit.
Sec. 6. Minnesota Statutes 1998, section 354A.091, subdivision 1, is amended to read:
Subdivision 1. [RETIREMENT CONTRIBUTIONS.] Notwithstanding any provision to the contrary of this chapter or the articles of incorporation or bylaws of an association relating to the salary figure to be used for the determination of contributions or the accrual of service credit an elementary, secondary, or technical college teacher in the public schools of a city of the first class who is granted an extended leave of absence pursuant to section 122A.46, or a teacher who is granted an extended leave of absence under section 136F.43, may pay employee contributions to the applicable association and shall be entitled to receive allowable service credit in that association for each year of leave, provided the member and the employing board make the required employer contributions, in any proportion they may agree upon, to that association during the period of leave which shall not exceed five years. The state shall not make an employer contribution on behalf of the teacher. The employee and employer contributions shall be based upon the rates of contribution prescribed by section 354A.12 as applied to a salary figure equal to the teacher's actual covered salary for the plan year immediately preceding the leave. Payment of the employee and employer contributions authorized pursuant to this section shall be made on or before June 30 of the fiscal year for which service credit is to be received. No allowable service with respect to a year of extended leave of absence shall be credited to a teacher until payment of the required employee and employer contributions has been received by the association.
Sec. 7. Minnesota Statutes 1998, section 354A.091, subdivision 2, is amended to read:
Subd. 2. [MEMBERSHIP RETENTION.] A teacher on extended leave pursuant to under either
section 122A.46 or 136F.43 whose employee and employer contributions are made to the applicable teachers
retirement fund association pursuant to subdivision 1 shall retain membership in the association for each year during
which the contributions are made, under the same terms and conditions as if the teacher had continued to teach in
the district.
Sec. 8. Minnesota Statutes 1998, section 354A.091, subdivision 3, is amended to read:
Subd. 3. [EFFECT OF NONPAYMENT.] A teacher on extended leave pursuant to under either
section 122A.46 or 136F.43 who does not make employee contributions or whose employer contribution
is not made to the applicable teachers retirement fund association in any year shall be deemed to have ceased to be
an active member of the association and to have ceased to render teaching services beginning in that year for
purposes of this chapter and the articles of incorporation and bylaws of the association, and may not pay employee
or employer contributions into the fund in any subsequent year of the leave. Nonpayment of contributions into the
fund shall not affect the rights or obligations of the teacher or the employing school district under section 122A.46
or the Minnesota state colleges and universities system under section 136F.43.
Sec. 9. Minnesota Statutes 1998, section 354A.091, subdivision 5, is amended to read:
Subd. 5. [APPLICABILITY.] The provisions of this section shall not apply to a teacher who is discharged pursuant to section 122A.41 while the teacher is on an extended leave of absence pursuant to section 122A.46. The provisions of this section also do not apply to a teacher who is discharged for cause while the teacher is on an extended leave of absence under section 136F.43.
Sec. 10. Minnesota Statutes 1998, section 354A.091, subdivision 6, is amended to read:
Subd. 6. A teacher who makes employee contributions to and receives allowable service credit in the applicable
teacher's retirement fund association pursuant to this section may not make employee contributions or receive
allowable service credit for the same period of time in any other Minnesota public employee pension plan, except
a volunteer firefighters' relief association governed by sections 69.771 to 69.776. This subdivision shall not be
construed to prohibit a member who pays employee contributions and receives allowable service credit in the fund
pursuant to this section in any year from being employed as a substitute teacher by any school district during that
year. Notwithstanding the provisions of this chapter or the bylaws of a retirement association, a teacher may not pay
retirement contributions or receive allowable service credit in the fund for teaching service rendered for any part of
any year for which the teacher pays retirement contributions or receives allowable service credit pursuant to section
354.094 or this section while on an extended leave of absence pursuant to under either section
122A.46 or section 136F.43.
Sec. 11. [354A.106] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO PURCHASE SERVICE CREDIT.]
(a) Unless prohibited by or subject to a penalty under federal law, a teacher who is a participant in the college supplemental retirement plan established under chapter 354C may utilize the teacher's supplemental plan account to purchase service credit under sections 354A.097, 354A.098, 354A.099, 354A.101, 354A.102, 354A.103, and 354A.104.
(b) At the request of a member, if determined by the executive director of the applicable teachers retirement fund association to be eligible to purchase service credit, the executive director shall notify the board of the Minnesota state colleges and universities system of the cost of the purchase and shall request the transfer of funds from the member's college supplemental retirement account to the applicable teachers retirement fund association. Upon receipt of the full prior service credit purchase payment amount, the applicable teachers retirement fund association shall grant the requested allowable and formula service credit.
Sec. 12. Minnesota Statutes 1998, section 354B.23, subdivision 5a, is amended to read:
Subd. 5a. [EXCESS CONTRIBUTIONS.] (a) When contributions to the plan exceed limits imposed by
federal law or regulation and it is necessary to return contributions to comply with the federal limits,
the excess employee contributions must be returned to the employee and to the
excess employer in the same proportions as the contributions were made contributions must
be reallocated in accordance with section 415 of the federal Internal Revenue Code, as amended, and the applicable
federal regulations and revenue rulings.
(b) When an employer contribution required under section 354B.24 due to a sabbatical leave is made after
completion of the leave or an employer contribution is made due to omitted deductions under subdivision 5, and these
employer contributions cause or would cause total contributions to the plan to exceed limits imposed by federal law
or regulation, the employer must make that portion of the contribution that would exceed the federal limit during
the next calendar year.
Sec. 13. Minnesota Statutes 1998, section 354C.12, subdivision 1a, is amended to read:
Subd. 1a. [EXCESS CONTRIBUTIONS.] (a) When contributions to the plan exceed limits imposed by
federal law or regulation and it is necessary to return contributions to comply with the federal limits, one-half
of the excess contributions must be returned to, the excess employee contributions must
be returned to the employee and one-half to the excess employer contributions must be
reallocated in accordance with section 415 of the federal Internal Revenue Code, as amended, and the applicable
federal regulations and revenue rulings.
(b) When an employer contribution is made due to omitted deductions under subdivision 2, and these employer
contributions cause or would cause total contributions to the plan to exceed limits imposed by federal law or
regulation, the employer must make that portion of the contribution that would exceed the federal limit during the
next calendar year.
Sec. 14. Minnesota Statutes 1998, section 354C.165, is amended to read:
354C.165 [PROHIBITION ON LOANS OR PRETERMINATION DISTRIBUTIONS.]
(a) Except as provided in paragraph (c), no participant may obtain a loan from the plan or
obtain any distribution from the plan at a time before the participant terminates the employment
that gave rise to plan coverage.
(b) No amounts to the credit of the plan are assignable either in law or in equity, are subject to state estate tax, or are subject to execution, levy, attachment, garnishment, or other legal process, except as provided in section 518.58, 518.581, or 518.6111.
(c) Unless prohibited by or subject to a penalty under federal law, a teacher who is a participant in the supplemental retirement plan may request, in writing, a transfer of all or a portion of the funds accumulated in the person's supplemental plan account to the teachers retirement association to purchase service credit under sections 354.53, 354.533, 354.534, 354.535, 354.536, 354.537, and 354.538 or to the teachers retirement fund association to purchase service credit under sections 354A.097, 354A.098, 354A.099, 354A.101, 354A.102, 354A.103, and 354A.104. Upon receipt of a valid request, the board shall execute the transfer. The transfer must be a fund-to-fund transfer, and in no event shall the participant directly receive any of the funds while still employed by the board. In no event may the board transfer more than the participant's account balance. The board, in cooperation with the executive director of the teachers retirement association, shall develop the forms for requesting a transfer and the procedures for executing the requested transfers.
Sec. 15. Minnesota Statutes 1999 Supplement, section 356.24, subdivision 1, is amended to read:
Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful for a school district or other governmental subdivision or state agency to levy taxes for, or contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees other than:
(1) to a supplemental pension plan that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
(3) to the individual retirement account plan established by chapter 354B;
(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or terminating employee;
(5) for employees other than personnel employed by the state university board or the community college board and covered by the board of trustees of the Minnesota state colleges and universities supplemental retirement plan under chapter 354C, if provided for in a personnel policy of the public employer or in the collective bargaining agreement between the public employer and the exclusive representative of public employees in an appropriate unit, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of $2,000 a year per employee;
(i) to the state of Minnesota deferred compensation plan under section 352.96; or
(ii) in payment of the applicable portion of the premium on a tax-sheltered annuity contract qualified under section 403(b) of the Internal Revenue Code, if purchased from a qualified insurance company, or to a qualified investment entity, as defined in subdivision 1a, and, in either case, if the employing unit has complied with any applicable pension plan provisions of the Internal Revenue Code with respect to the tax-sheltered annuity program during the preceding calendar year; or
(6) for personnel employed by the state university board or the community college board and not covered by clause
(5), to the supplemental retirement plan under chapter 354C, if provided for in a personnel policy or in the collective
bargaining agreement of the public employer with the exclusive representative of the covered employees in an
appropriate unit, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an
employer contribution of $2,000 $2,700 a year for each employee.
Sec. 16. Minnesota Statutes 1998, section 356A.01, subdivision 8, is amended to read:
Subd. 8. [COVERED PENSION PLAN.] "Covered pension plan" means a pension plan or fund listed in section 356.20, subdivision 2, or section 356.30, subdivision 3, or a plan established under chapter 353D, 354B, 354C, or 354D.
Sec. 17. Minnesota Statutes 1998, section 356A.02, is amended to read:
356A.02 [FIDUCIARY STATUS AND ACTIVITIES.]
Subdivision 1. [FIDUCIARY STATUS.] For purposes of this chapter, the following persons are fiduciaries:
(1) any member of the governing board of a covered pension plan;
(2) the chief administrative officer of a covered pension plan or of the state board of investment;
(3) any member of the state board of investment; and
(4) any member of the investment advisory council; and
(5) any member of the advisory committee established under section 354B.25.
Subd. 2. [FIDUCIARY ACTIVITY.] The activities of a fiduciary identified in subdivision 1 that must be carried out in accordance with the requirements of section 356A.04 include, but are not limited to:
(1) the investment and reinvestment of plan assets;
(2) the determination of benefits;
(3) the determination of eligibility for membership or benefits;
(4) the determination of the amount or duration of benefits;
(5) the determination of funding requirements or the amounts of contributions;
(6) the maintenance of membership or financial records; and
(7) the expenditure of plan assets; and
(8) the selection of financial institutions and investment products.
Sec. 18. Minnesota Statutes 1998, section 356A.06, is amended by adding a subdivision to read:
Subd. 10. [DEFINED CONTRIBUTION PLANS; APPLICATION.] (a) To the extent that a plan governed by chapter 352D, 353D, 354B, 354C, or 354D permits a participant or beneficiary to select among investment products for the person's account and the participant or beneficiary exercises that investment self-direction, no fiduciary is liable for any loss which may result from the participant's or beneficiary's exercise of that investment self-direction.
(b) Subdivisions 1, 2, 6, 8, and 8a do not apply to plans governed by chapter 354B or 354C.
Sec. 19. [VENDOR CONTRACT EXTENSION OPTION.]
Notwithstanding Minnesota Statutes, section 136F.45, subdivision 1a, paragraph (c), the board of trustees of the Minnesota state colleges and universities may, with the agreement of the parties involved, extend the vendor contracts in effect immediately before July 1, 2000, with any revisions that are mutually agreeable to the parties, for up to an additional two years duration.
Sec. 20. [EFFECTIVE DATE.]
(a) Sections 4, 5, and 11 to 20 are effective on the day following final enactment.
(b) Sections 1, 2, 3, and 6 to 10 are effective on the day following final enactment and apply retroactively to a faculty member of the Lake Superior College who was granted an extended leave of absence under article 19, section 4, of the united technical college educators master agreement for the 1999-2000 academic year prior to March 20, 2000.
(c) Sections 5, 11, and 14, paragraph (c), expire on May 16, 2002.
ARTICLE 13
EMPLOYER MATCHING CONTRIBUTION
TAX SHELTERED ANNUITY CHANGES
Section 1. Minnesota Statutes 1999 Supplement, section 356.24, subdivision 1, is amended to read:
Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful for a school district or other governmental subdivision or state agency to levy taxes for, or contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees other than:
(1) to a supplemental pension plan that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
(3) to the individual retirement account plan established by chapter 354B;
(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or terminating employee;
(5) for employees other than personnel employed by the state university board or the community college board and covered by the board of trustees of the Minnesota state colleges and universities supplemental retirement plan under chapter 354C, if provided for in a personnel policy of the public employer or in the collective bargaining agreement between the public employer and the exclusive representative of public employees in an appropriate unit, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of $2,000 a year per employee;
(i) to the state of Minnesota deferred compensation plan under section 352.96; or
(ii) in payment of the applicable portion of the premium on a tax-sheltered annuity contract qualified
contribution made to any investment eligible under section 403(b) of the Internal Revenue Code, if
purchased from a qualified insurance company, or to a qualified investment entity, as defined in subdivision 1a,
and, in either case, if the employing unit has complied with any applicable pension plan provisions of the
Internal Revenue Code with respect to the tax-sheltered annuity program during the preceding calendar year; or
(6) for personnel employed by the state university board or the community college board and not covered by clause (5), to the supplemental retirement plan under chapter 354C, if provided for in a personnel policy or in the collective bargaining agreement of the public employer with the exclusive representative of the covered employees in an appropriate unit, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of $2,000 a year for each employee.
Sec. 2. Minnesota Statutes 1999 Supplement, section 356.24, subdivision 1b, is amended to read:
Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for unrepresented employees or a collective
bargaining agreement or a school board may establish limits on the number of vendors under subdivision
1 that it will utilize and conditions under which the vendors may contact employees both during working hours
and after working hours.
Sec. 3. Minnesota Statutes 1998, section 356.24, is amended by adding a subdivision to read:
Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] Any insurance company, mutual fund company, or similar company providing investments eligible under section 403(b) of the Internal Revenue Code and eligible to receive employer contributions under this section may request the state board of investment, in conjunction with the department of commerce, to review the financial standing of the company, the competitiveness of its investment options and returns, and the level of all charges and fees impacting those returns. The state board of investment may establish a fee for each review. The state board of investment must maintain and have available a list of all reviewed companies. In reviewing companies under this section, the state board of investment must not be considered to be acting as a fiduciary or to be engaged in a fiduciary activity under chapter 356A or common law.
Sec. 4. [REPEALER.]
Minnesota Statutes 1999 Supplement, section 356.24, subdivision 1a, is repealed.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective on the day following final enactment.
ARTICLE 14
RETIREMENT GENERALLY
Section 1. [REPEALER.]
Minnesota Statutes 1999 Supplement, section 356.61, is repealed.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective retroactively to July 1, 1999.
ARTICLE 15
VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATION CHANGES
Section 1. Minnesota Statutes 1999 Supplement, section 69.021, subdivision 7, is amended to read:
Subd. 7. [APPORTIONMENT OF FIRE STATE AID TO MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (a) The commissioner shall apportion the fire state aid relative to the premiums reported on the Minnesota Firetown Premium Reports filed under this chapter to each municipality and/or firefighters' relief association.
(b) The commissioner shall calculate an initial fire state aid allocation amount for each municipality or fire department under paragraph (c) and a minimum fire state aid allocation amount for each municipality or fire department under paragraph (d). The municipality or fire department must receive the larger fire state aid amount.
(c) The initial fire state aid allocation amount is the amount available for apportionment as fire state aid under subdivision 5, without inclusion of any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, allocated one-half in proportion to the population as shown in the last official statewide federal census for each fire town and one-half in proportion to the market value of each fire town, including (1) the market value of tax exempt property and (2) the market value of natural resources lands receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the market value of minerals. In the case of incorporated or municipal fire departments furnishing fire protection to other cities, towns, or townships as evidenced by valid fire service contracts filed with the commissioner, the distribution must be adjusted
proportionately to take into consideration the crossover fire protection service. Necessary adjustments shall be made to subsequent apportionments. In the case of municipalities or independent fire departments qualifying for the aid, the commissioner shall calculate the state aid for the municipality or relief association on the basis of the population and the market value of the area furnished fire protection service by the fire department as evidenced by duly executed and valid fire service agreements filed with the commissioner. If one or more fire departments are furnishing contracted fire service to a city, town, or township, only the population and market value of the area served by each fire department may be considered in calculating the state aid and the fire departments furnishing service shall enter into an agreement apportioning among themselves the percent of the population and the market value of each service area. The agreement must be in writing and must be filed with the commissioner.
(d) The minimum fire state aid allocation amount is the amount in addition to the initial fire state allocation
amount that is derived from any additional funding amount to support a minimum fire state aid amount under section
423A.02, subdivision 3, and allocated to municipalities with volunteer firefighter relief associations based on the
number of active volunteer firefighters who are members of the relief association as reported in the annual financial
reporting for the calendar year 1993 to the office of the state auditor, but not to exceed 30 active volunteer
firefighters, so that all municipalities or fire departments with volunteer firefighter relief associations receive in total
at least a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 30 firefighters. If
a relief association did not exist in is established after calendar year 1993 and before calendar
year 2000, the number of active volunteer firefighters who are members of the relief association as reported in
the annual financial reporting for calendar year 1998 to the office of the state auditor, but not to exceed 30 active
volunteer firefighters, shall be used in this determination. If a relief association is established after calendar year
1999, the number of active volunteer firefighters who are members of the relief association as reported in the first
annual financial reporting submitted to the office of the state auditor, but not to exceed 20 active volunteer
firefighters, must be used in this determination.
(e) The fire state aid must be paid to the treasurer of the municipality where the fire department is located and the treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit the aid to the relief association if the relief association has filed a financial report with the treasurer of the municipality and has met all other statutory provisions pertaining to the aid apportionment.
(f) The commissioner may make rules to permit the administration of the provisions of this section.
(g) Any adjustments needed to correct prior misallocations must be made to subsequent apportionments.
Sec. 2. [69.041] [SHORTFALL FROM GENERAL FUND.]
(a) If the annual funding requirements of fire or police relief associations or consolidation accounts under section 69.77, sections 69.771 to 69.775, or section 353A.09, exceed all applicable revenue sources of a given year, including the insurance premium taxes funding the applicable fire or police state aid as set under section 60A.15, subdivision 1, paragraph (e), clauses (1) to (3), the shortfall in the annual funding requirements must be paid from the general fund to the extent appropriated by the legislature.
(b) Nothing in this section may be deemed to relieve any municipality from its obligation to a relief association or consolidation account under law.
Sec. 3. Minnesota Statutes 1998, section 69.773, subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] (a) This section shall apply applies to any firefighters'
relief association specified in section 69.771, subdivision 1, which pays or allows for an option of a monthly service
pension to a retiring firefighter when at least the minimum requirements for entitlement to a service pension
specified in section 424A.02, any applicable special legislation and the articles of incorporation or bylaws of the
relief association have been met. Each firefighters' relief association to which this section applies shall determine
the actuarial condition and funding costs of the special fund of the relief association in accordance with subdivisions
2 and 3, the financial requirements of the special fund of the relief association in accordance with subdivision 4 and
the minimum obligation of the municipality with respect to the special fund of the relief association in accordance
with subdivision 5.
(b) If a firefighters relief association that previously provided a monthly benefit service pension discontinues that practice and either replaces the monthly benefit amount with a lump sum benefit amount consistent with section 424A.02, subdivision 3, or purchases an annuity in the same amount as the monthly benefit from an insurance company licensed to do business in this state, the actuarial condition and funding costs, financial, and minimum municipal obligation requirements of section 69.772 apply rather than this section.
Sec. 4. Minnesota Statutes 1998, section 424A.001, subdivision 9, is amended to read:
Subd. 9. [SEPARATE FROM ACTIVE SERVICE.] "Separate from active service" means to permanently cease to perform fire suppression duties with a particular volunteer fire department, to permanently cease to perform fire prevention duties, to permanently cease to supervise fire suppression duties, and to permanently cease to supervise fire prevention duties.
Sec. 5. Minnesota Statutes 1998, section 424A.02, subdivision 3, is amended to read:
Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or before August 1 of each year as part of the certification of the financial requirements and minimum municipal obligation made pursuant to section 69.772, subdivision 4, or 69.773, subdivision 5, the secretary or some other official of the relief association designated in the bylaws of each relief association shall calculate and certify to the governing body of the applicable qualified municipality the average amount of available financing per active covered firefighter for the most recent three-year period. The amount of available financing shall include any amounts of fire state aid received or receivable by the relief association, any amounts of municipal contributions to the relief association raised from levies on real estate or from other available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief association calculated pursuant to sections 69.772, subdivision 2; 69.773, subdivisions 2 and 4; or 69.774, subdivision 2, if any.
(b) The maximum service pension which the relief association has authority to provide for in its bylaws for payment to a member retiring after the calculation date when the minimum age and service requirements specified in subdivision 1 are met must be determined using the table in paragraph (c) or (d), whichever applies.
(c) For a relief association where the governing bylaws provide for a monthly service pension to a retiring member, the maximum monthly service pension amount per month for each year of service credited that may be provided for in the bylaws is the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter:
Minimum Average Amount ofMaximum Service Pension
Available Financing perAmount Payable per Month
Firefighter for Each Year of Service
$..... $ .25
42 .50
84 1.00
126 1.50
168 2.00
209 2.50
252 3.00
294 3.50
335 4.00
378 4.50
420 5.00
503 6.00
587 7.00
672 8.00
839 10.00
923 11.00
1007 12.00
1090 13.00
1175 14.00
1259 15.00
1342 16.00
1427 17.00
1510 18.00
1594 19.00
1677 20.00
1762 21.00
1845 22.00
1888 22.50
1929 23.00
2014 24.00
2098 25.00
2183 26.00
2267 27.00
2351 28.00
2436 29.00
2520 30.00
2604 31.00
2689 32.00
2773 33.00
2857 34.00
2942 35.00
3026 36.00
3110 37.00
3963 38.00
4047 39.00
4137 40.00
any amount more than 4137 40.00
Effective beginning December 31, 2000:
4227 41.00
4317 42.00
4407 43.00
4497 44.00
Effective beginning December 31, 2001:
4587 45.00
4677 46.00
4767 47.00
4857 48.00
Effective beginning December 31, 2002:
4947 49.00
5037 50.00
5127 51.00
Effective beginning December 31, 2003:
5307 53.00
5397 54.00
5487 55.00
5577 56.00
(d) For a relief association in which the governing bylaws provide for a lump sum service pension to a retiring member, the maximum lump sum service pension amount for each year of service credited that may be provided for in the bylaws is the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter for the applicable specified period:
Minimum Average AmountMaximum Lump Sum Service
of Available FinancingPension Amount Payable
per Firefighter for Each Year of Service
$..... $10
11 20
16 30
23 40
27 50
32 60
43 80
54 100
65 120
77 140
86 160
97 180
108 200
131 240
151 280
173 320
194 360
216 400
239 440
259 480
281 520
302 560
324 600
347 640
367 680
389 720
410 760
432 800
486 900
540 1000
594 1100
648 1200
702 1300
756 1400
810 1500
864 1600
972 1800
1026 1900
1080 2000
1134 2100
1188 2200
1242 2300
1296 2400
1350 2500
1404 2600
1458 2700
1512 2800
1566 2900
1620 3000
1672 3100
1726 3200
1753 3250
1780 3300
1820 3375
1834 3400
1888 3500
1942 3600
1996 3700
2023 3750
2050 3800
2104 3900
2158 4000
2212 4100
2265 4200
2319 4300
2373 4400
2427 4500
2481 4600
2535 4700
2589 4800
2643 4900
2697 5000
2751 5100
2805 5200
2859 5300
2913 5400
2967 5500
any amount more than 2967 5500
Effective beginning December 31, 2000:
3021 5600
3075 5700
3129 5800
3183 5900
Effective beginning December 31, 2001:
3291 6100
3345 6200
3399 6300
3453 6400
3507 6500
Effective beginning December 31, 2002:
3561 6600
3615 6700
3669 6800
3723 6900
3777 7000
Effective beginning December 31, 2003:
3831 7100
3885 7200
3939 7300
3993 7400
4047 7500
(e) For a relief association in which the governing bylaws provide for a monthly benefit service pension as an alternative form of service pension payment to a lump sum service pension, the maximum service pension amount for each pension payment type must be determined using the applicable table contained in this subdivision.
(f) If a relief association establishes a service pension in compliance with the applicable maximum contained in paragraph (c) or (d) and the minimum average amount of available financing per active covered firefighter is subsequently reduced because of a reduction in fire state aid or because of an increase in the number of active firefighters, the relief association may continue to provide the prior service pension amount specified in its bylaws, but may not increase the service pension amount until the minimum average amount of available financing per firefighter under the table in paragraph (c) or (d), whichever applies, permits.
(g) No relief association is authorized to provide a service pension in an amount greater than $40 per month
per year of service credit or in an amount greater than $5,500 lump sum per year of service credit even if the
minimum average amount of available financing per firefighter for a relief association providing a monthly benefit
service pension is greater than $4,137, or, for a relief association providing a lump sum service pension, is greater
than $2,967. No relief association is authorized to provide a service pension in an amount greater than the
largest applicable flexible service pension maximum amount even if the amount of available financing per firefighter
is greater than the financing amount associated with the largest applicable flexible service pension maximum.
Sec. 6. Minnesota Statutes 1998, section 424A.02, subdivision 7, is amended to read:
Subd. 7. [DEFERRED SERVICE PENSIONS.] (a) A member of a relief association to which this section applies is entitled to a deferred service pension if the member:
(1) has completed the lesser of the minimum period of active service with the fire department specified in the bylaws or 20 years of active service with the fire department;
(2) has completed at least five years of active membership in the relief association; and
(3) separates from active service and membership before reaching age 50 or the minimum age for retirement and commencement of a service pension specified in the bylaws governing the relief association if that age is greater than age 50.
(b) The deferred service pension starts when the former member reaches age 50 or the minimum age specified in the bylaws governing the relief association if that age is greater than age 50 and when the former member makes a valid written application.
(c) A relief association that provides a lump sum service pension may, when its governing bylaws so
provide, pay interest on the deferred lump sum service pension during the period of deferral. If provided for in
the bylaws, interest must be paid at the rate actually earned on that portion of the assets if the deferred
benefit amount is invested by the relief association, but not to exceed the interest rate specified in section
356.215, subdivision 4d, and must be in a separate account established and maintained by the relief
association or in a separate investment vehicle held by the relief association or, if not, at the interest rate of five
percent, compounded annually based on calendar year balances.
(d) For a deferred service pension that is transferred to a separate account established and maintained by the relief association or separate investment vehicle held by the relief association, the deferred member bears the full investment risk subsequent to transfer and in calculating the accrued liability of the volunteer firefighter relief association that pays a lump sum service pension, the accrued liability for deferred service pensions is equal to the separate relief association account balance or the fair market value of the separate investment vehicle held by the relief association.
(e) The deferred service pension is governed by and must be calculated under the general statute, special
law, relief association articles of incorporation, or and relief association bylaw provisions applicable
on the date on which the member separated from active service with the fire department and active membership in
the relief association.
Sec. 7. Minnesota Statutes 1998, section 424A.02, subdivision 9, is amended to read:
Subd. 9. [LIMITATION ON ANCILLARY BENEFITS.] Any relief association, including any volunteer firefighters relief association governed by section 69.77 or any volunteer firefighters division of a relief association governed by chapter 424, may only pay ancillary benefits which would constitute an authorized disbursement as specified in section 424A.05 subject to the following requirements or limitations:
(a) (1) With respect to a relief association in which governing bylaws provide for a lump sum
service pension to a retiring member, no ancillary benefit may be paid to any former member or paid to any person
on behalf of any former member after the former member (1) (i) terminates active service with the
fire department and active membership in the relief association; and (2) (ii) commences receipt of
a service pension as authorized pursuant to under this section; and
(b) (2) With respect to any relief association, no ancillary benefit paid or payable to any member,
to any former member, or to any person on behalf of any member or former member, may exceed in amount the total
earned service pension of the member or former member. The total earned service pension shall
must be calculated using the service pension amount specified in the bylaws of the relief association and
the years of service credited to the member or former member. The years of service shall must be
determined as of (1) (i) the date the member or former member became entitled to the ancillary
benefit; or (2) (ii) the date the member or former member died entitling a survivor or the estate of
the member or former member to an ancillary benefit. The ancillary benefit shall must be
calculated (1) (i) without regard to whether the member or former member had attained the
minimum amount of service and membership credit specified in the governing bylaws; and (2) (ii)
without regard to the percentage amounts specified in subdivision 2; except that the bylaws of any relief association
may provide for the payment of a survivor benefit in an amount not to exceed five times the yearly service pension
amount specified in the bylaws on behalf of any member who dies before having performed five years of active
service in the fire department with which the relief association is affiliated.
Sec. 8. Minnesota Statutes 1998, section 424A.02, is amended by adding a subdivision to read:
Subd. 9b. [REPAYMENT OF SERVICE PENSION IN CERTAIN INSTANCES.] If a retired volunteer firefighter does not permanently separate from active firefighting service as required by subdivision 1 and section 424A.001, subdivision 9, by resuming active service as a firefighter in the same volunteer fire department or as a person in charge of firefighters in the same volunteer fire department, no additional service pension amount is payable to the person, no additional service is creditable to the person, and the person shall repay any previously received service pension.
Sec. 9. Minnesota Statutes 1998, section 424A.02, subdivision 13, is amended to read:
Subd. 13. [COMBINED SERVICE PENSIONS.] (a) If the articles of incorporation or bylaws of the associations so provide, a volunteer firefighter with credit for service as an active firefighter in more than one volunteer firefighters relief association is entitled, when the applicable requirements of paragraph (b) are met and when otherwise qualified, to a prorated service credit from each relief association.
(b) A volunteer firefighter receiving a prorated service pension under this subdivision must have total
service credit of ten years or more, if every affected relief association does not require only a five-year service vesting
requirement, or five years or more, if every affected relief association requires only a five-year service vesting
requirement, as a member of two or more relief associations is entitled, when otherwise qualified, to a
prorated service pension from each association in which. The member has must have
one year or more of service credit in each relief association. The prorated service pension must be based
on the service pension amount in effect for the relief association on the date on which active volunteer
firefighting services covered by that relief association terminate. To receive a service pension under this subdivision,
the firefighter must become a member of the second or succeeding association and must give notice of
membership to the prior association within two years of the date of termination of active service with the
prior association. The notice must be attested to by the second or subsequent association secretary.
Sec. 10. Minnesota Statutes 1998, section 424A.04, subdivision 1, is amended to read:
Subdivision 1. [MEMBERSHIP.] (a) Every relief association directly associated with a municipal fire department shall be managed by a board of trustees consisting of nine members. Six trustees shall be elected from the membership of the relief association and three trustees shall be drawn from the officials of the municipalities served by the fire department to which the relief association is directly associated. The bylaws of a relief association may provide that one of the six trustees elected from the relief association may be a retired member receiving a monthly pension who is elected by the membership of the relief association. The three ex officio trustees shall be the mayor, the clerk, clerk-treasurer or finance director, and the chief of the municipal fire department.
(b) Every relief association that is a subsidiary of an independent nonprofit firefighting corporation shall be managed by a board of trustees consisting of ten members. Six trustees shall be elected from the membership of the relief association, three trustees shall be drawn from the officials of the municipalities served by the fire department to which the relief association is directly associated, and one trustee shall be the fire chief. The bylaws of a relief association may provide that one of the six trustees elected from the relief association may be a retired member receiving a monthly pension who is elected by the membership of the relief association. The three ex officio trustees who are the elected officials shall be selected as follows:
(1) if only one municipality contracts with the independent nonprofit firefighting corporation, the ex officio trustees shall be three elected officials of the contracting municipality who are designated by the governing body of the municipality;
(2) if two municipalities contract with the independent nonprofit firefighting corporation, the ex officio trustees shall be two elected officials of the largest municipality in population and one elected official of the next largest municipality in population who are designated by the governing bodies of the applicable municipalities; or
(3) if three or more municipalities contract with the independent nonprofit corporation, the ex officio trustees shall be one elected official of each of the three largest municipalities in population who are designated by the governing bodies of the applicable municipalities.
(c) If a relief association lacks the ex officio board members provided for in paragraph (a) or (b) because the fire department is not located in or associated with an organized municipality, the ex officio board members must be appointed from the fire department service area by the board of commissioners of the applicable county. The term of these appointed ex officio board members is three years or until the person's successor is qualified, whichever is later.
(d) An ex officio trustee under paragraph (a), (b), or (c) shall have all the rights and duties accorded to any other trustee except the right to be an officer of the board of trustees.
(e) A board shall have at least three officers, which shall be a president, a secretary and a treasurer. These officers shall be elected from among the elected trustees by either the full board of trustees or by the membership, as specified in the bylaws, and in no event shall any trustee hold more than one officer position at any one time. The terms of the elected trustees and of the officers of the board shall be specified in the bylaws of the relief association, but shall not exceed three years. If the term of the elected trustees exceeds one year, the election of the various trustees elected from the membership shall initially and shall thereafter continue to be staggered on as equal a basis as is practicable.
Sec. 11. Minnesota Statutes 1998, section 424A.05, subdivision 3, is amended to read:
Subd. 3. [AUTHORIZED DISBURSEMENTS FROM THE SPECIAL FUND.] (a) Disbursements from
the special fund shall are not permitted to be made for any purpose other than one of the
following:
(1) For the payment of service pensions to retired members of the relief association if authorized and paid pursuant to law and the bylaws governing the relief association;
(2) For the payment of temporary or permanent disability benefits to disabled members of the relief association if authorized and paid pursuant to law and specified in amount in the bylaws governing the relief association;
(3) For the payment of survivor benefits to surviving spouses and surviving children, or if none, to designated beneficiaries, of deceased members of the relief association if authorized by and paid pursuant to law and specified in amount in the bylaws governing the relief association;
(4) For the payment of any funeral benefits to the surviving spouse, or if no surviving spouse, the estate, of the deceased member of the relief association if authorized by law and specified in amount in the bylaws governing the relief association;
(5) For the payment of the fees, dues and assessments to the Minnesota state fire department association
and, to the Minnesota area relief association coalition, and to the state volunteer firefighters' benefit
association in order to entitle relief association members to membership in and the benefits of these state
associations or organizations; and
(6) For the payment of administrative expenses of the relief association as authorized pursuant to section 69.80.
(b) For purposes of this chapter, a designated beneficiary must be a natural person.
Sec. 12. [VOLUNTEER FIREFIGHTERS LUMP SUM SERVICE BENEFITS.]
Subdivision 1. [APPLICATION.] This section applies to a surviving spouse of a person who:
(1) was born on August 18, 1941;
(2) was employed as a building inspector by the city of St. Paul;
(3) died during the course of his employment duties as a building inspector on December 24, 1997;
(4) began service as a volunteer firefighter for the Woodbury fire department in 1980 and continued that service up to the time of his death; and
(5) would have been eligible to retire as a volunteer firefighter and receive a lump sum service pension calculated at the rate of $4,000 for each year of service on January 1, 1998.
Subd. 2. [ELIGIBILITY FOR BENEFIT.] Notwithstanding any law to the contrary, the eligible person described in subdivision 1 is entitled to receive a survivor benefit from the Woodbury fire department relief association benefit plan calculated at the rate that would have been in effect had the person described in subdivision 1 lived until January 1, 1998.
Subd. 3. [RESTRICTIONS.] This section does not authorize payment of more than a single survivor benefit to the eligible individual specified in subdivision 1. If a survivor benefit has been paid to the eligible individual by the Woodbury fire department relief association, this section authorizes payment to the eligible individual of the difference between the amount previously paid and the amount payable under the Woodbury fire department relief association benefit plan in effect on January 1, 1998, assuming the volunteer firefighter survived and provided service to that date.
Sec. 13. [EFFECTIVE DATE.]
(a) Sections 1 to 5 and 7 to 11 are effective on the day following final enactment.
(b) Section 6 is effective on the day following final enactment and, with the appropriate bylaw amendment and municipal approval, applies to deferred service pensions where deferral began before the effective date of the municipal approval.
(c) For a deferred service pension under section 6 that is invested in a separate account or separate investment vehicle, interest is payable up to the date of the transfer consistent with the law and bylaw provisions in effect when the firefighter terminated active firefighting service and actual investment performance thereafter.
(d) Section 12 is effective on the day after the date on which the Woodbury city council and the chief clerical officer of the city of Woodbury complete, in a timely manner, their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
ARTICLE 16
DISSOLUTIONS AND CONSOLIDATIONS
OF VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
Section 1. [424B.01] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] Unless the context of the provision indicates that a different meaning is intended, each of the terms in the following subdivisions have the meaning indicated.
Subd. 2. [APPLICABLE MUNICIPALITY.] "Applicable municipality" means the municipality or municipalities in which a consolidating relief association is located and to which a consolidating relief association is associated by virtue of the presence of at least one municipal official on the relief association board of trustees under section 424A.04.
Subd. 3. [CONSOLIDATING RELIEF ASSOCIATION.] "Consolidating relief association" means a volunteer firefighter relief association organized under chapter 317A and governed by chapter 424A that has initiated or has completed the process of consolidating with one or more other relief associations under this chapter.
Subd. 4. [PRIOR RELIEF ASSOCIATIONS.] "Prior relief associations" means the two or more volunteer firefighter relief associations that have initiated the consolidation process under this chapter by action of the board of trustees of the relief association.
Subd. 5. [RELIEF ASSOCIATION MEMBERSHIP.] "Relief association membership" means all active members of the volunteer firefighter relief association, all deferred retirees and other vested inactive members of the volunteer firefighter relief association, and any persons regularly receiving a service pension or other retirement benefit from the volunteer firefighters relief association.
Subd. 6. [SUBSEQUENT RELIEF ASSOCIATION.] "Subsequent relief association" means the volunteer firefighters relief association that is designated to be the successor relief association in the consolidation initiative resolutions of the board of trustees of the prior relief associations or the volunteer firefighters relief association organized under chapters 317A and 424A for the purpose of operating as the successor relief association after consolidation under this chapter.
Sec. 2. [424B.02] [CONSOLIDATION AUTHORIZED.]
Subdivision 1. [INITIATION.] (a) With the approval of the governing body of each applicable municipality, two or more relief associations associated with fire departments serving contiguous fire districts may initiate the consolidation of the relief associations into a subsequent relief association.
(b) Initiation of a consolidation action must occur through the proposal of a consolidation resolution to the board of trustees of each volunteer firefighter relief association notification of the relief association membership of the potential consolidation and after conducting a public meeting on the consolidation question.
Subd. 2. [INITIATIVE PROCESSING; FILING.] (a) After a consolidation initiative resolution has been filed with the relief association board of trustees by one or more members of the board, the relief association secretary shall provide written notification of the initiative to the relief association membership. After notification of the relief association membership, the board of trustees must hold a public hearing on the initiative. After the hearing, the board of trustees shall act on the consolidation resolution.
(b) If the consolidation resolution is adopted by majority vote of the board of trustees, the secretary shall file a copy of the resolution with the other relief association or associations also considering consolidation.
(c) If two or more volunteer firefighter relief associations adopt a consolidation resolution, those relief associations are consolidated effective the next following January 1.
(d) Within 30 days of the adoption of the consolidation resolution by all prior relief associations, the secretaries of the applicable prior relief associations shall jointly notify in writing the state auditor, the commissioner of revenue, and the secretary of state of the consolidation.
Sec. 3. [424B.03] [SUBSEQUENT RELIEF ASSOCIATION.]
Subdivision 1. [NEW RELIEF ASSOCIATION.] If the subsequent relief association is a new volunteer firefighter relief association, the consolidated volunteer firefighters relief association must be incorporated under chapter 317A. The incorporators of the consolidated relief association must include at least one board member of each of the former volunteer firefighters relief associations.
Subd. 2. [SUCCESSOR RELIEF ASSOCIATION.] If the subsequent relief association is one of the prior relief associations, the articles of incorporation and bylaws must be appropriately revised, effective on the consolidation effective date, and a revised board of trustees must be elected before the consolidation effective date.
Sec. 4. [424B.04] [GOVERNANCE OF CONSOLIDATED VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION.]
Subdivision 1. [BOARD OF TRUSTEES.] The consolidated volunteer firefighters relief association is governed by a board of trustees as provided in section 424A.04, subdivision 1.
Subd. 2. [COMPOSITION OF BOARD.] The board must have three officers, including a president, a secretary, and a treasurer. The membership of the consolidated volunteer firefighters relief association must elect the three officers from the board members. A board of trustees member may not hold more than one officer position at the same time.
Subd. 3. [BOARD ADMINISTRATION.] The board of trustees must administer the affairs of the relief association consistent with this chapter and the applicable provisions of chapters 69, 356A, and 424A.
Sec. 5. [424B.05] [SPECIAL AND GENERAL FUNDS.]
The consolidated volunteer firefighters relief association must establish and maintain a special fund and a general fund. The special fund must be established and maintained as provided in section 424A.05. The general fund must be established and maintained as provided in section 424A.06.
Sec. 6. [424B.06] [TRANSFERS.]
Subdivision 1. [GENERALLY.] On the effective date of consolidation, the records, assets, and liabilities of the prior volunteer firefighter relief associations are transferred to the consolidated volunteer firefighters relief association. On the effective date of consolidation, the prior volunteer firefighters relief associations cease to exist as legal entities, except for the purposes of winding up association affairs as provided by this chapter.
Subd. 2. [TRANSFER OF ADMINISTRATION.] On the effective date of consolidation, the administration of the prior relief associations is transferred to the board of trustees of the subsequent volunteer firefighters relief association.
Subd. 3. [TRANSFER OF RECORDS.] On the effective date of consolidation, the secretary and the treasurer of the prior volunteer firefighters relief associations shall transfer all records and documents relating to the prior relief associations to the secretary and treasurer of the subsequent volunteer firefighters relief association.
Subd. 4. [TRANSFER OF SPECIAL FUND ASSETS AND LIABILITIES.] (a) On the effective date of consolidation, the secretary and the treasurer of a prior volunteer firefighters relief association shall transfer the assets of the special fund of the applicable relief association to the special fund of the subsequent relief association. Unless the appropriate secretary and treasurer decide otherwise, the assets may be transferred as investment securities rather than cash. The transfer must include any accounts receivable. The appropriate secretary must settle any accounts payable from the special fund of the relief association before the effective date of consolidation.
(b) Upon the transfer of the assets of the special fund of a prior relief association, the pension liabilities of that special fund become the obligation of the special fund of the subsequent volunteer firefighters relief association.
(c) Upon the transfer of the prior relief association special fund assets, the board of trustees of the subsequent volunteer firefighters relief association has legal title to and management responsibility for the transferred assets as trustees for persons having a beneficial interest in those assets arising out of the benefit coverage provided by the prior relief association.
(d) The subsequent volunteer firefighters relief association is the successor in interest in all claims for and
against the special funds of the prior volunteer firefighters relief associations or the applicable municipalities with
respect to the special funds of the prior relief associations. The status of successor in interest does not apply to any
claim
against a prior relief association, the municipality in which that relief association is located, or any person connected with the prior relief association or the municipality, based on any act or acts that were not done in good faith and that constituted a breach of fiduciary responsibility under common law or chapter 356A.
Sec. 7. [424B.07] [DISSOLUTION OF PRIOR GENERAL FUND BALANCES.]
Before the effective date of consolidation, the secretaries of the volunteer firefighters relief associations shall settle any accounts payable from the respective general fund or any other relief association fund in addition to the relief association special fund. Investments held by a fund of the prior relief associations in addition to the special fund must be liquidated before the effective date of consolidation as the bylaws of the relief association provide. Before the effective date of consolidation, the respective relief associations must pay all applicable general fund expenses from their respective general funds. Any balance remaining in the general fund or in a fund other than the relief association special fund as of the effective date of consolidation must be paid to the new general fund of the subsequent volunteer firefighter relief association.
Sec. 8. [424B.08] [TERMINATION OF PRIOR RELIEF ASSOCIATIONS.]
Following the transfer of administration, records, special fund assets, and special fund liabilities from the prior relief associations to the subsequent volunteer firefighters relief association, the prior volunteer firefighter relief associations cease to exist as legal entities for any purpose. The subsequent relief association secretary shall notify the following governmental officials of the termination of the respective volunteer firefighter relief associations and of the establishment of the subsequent volunteer firefighters relief association:
(1) Minnesota secretary of state;
(2) Minnesota state auditor;
(3) Minnesota commissioner of revenue; and
(4) commissioner of the federal Internal Revenue Service.
Sec. 9. [424B.09] [ADMINISTRATIVE EXPENSES.]
The payment of authorized administrative expenses of the subsequent volunteer firefighters relief association must be from the special fund of the subsequent volunteer firefighters relief association in accordance with section 69.80, and as provided for in the bylaws of the subsequent volunteer firefighters relief association and approved by the board of trustees of the subsequent volunteer firefighters relief association. The payment of any other expenses of the subsequent volunteer firefighters relief association must be from the general fund of the subsequent volunteer firefighters relief association in accordance with section 69.80 and as provided for in the bylaws of the subsequent volunteer firefighters relief association and approved by the board of trustees of the subsequent volunteer firefighters relief association.
Sec. 10. [424B.10] [BENEFITS; FUNDING.]
Subdivision 1. [BENEFITS.] (a) Notwithstanding section 424A.02, subdivision 3, to the contrary, the service pension of the subsequent relief association as of the effective date of consolidation is the highest dollar amount service pension amount of any prior volunteer firefighters relief association in effect immediately before the consolidation initiation if the pension amount was implemented consistent with section 424A.02.
(b) Any increase in the service pension amount beyond the amount implemented under paragraph (a) must conform with the requirements and limitations of sections 69.771 to 69.775 and 424A.02.
Subd. 2. [FUNDING.] (a) Unless the applicable municipalities agree in writing to allocate the minimum municipal obligation in a different manner, the minimum municipal obligation under section 69.772 or 69.773, whichever applies, must be allocated between the applicable municipalities in proportion to their fire state aid.
(b) If any applicable municipality fails to meet its portion of the minimum municipal obligation to the subsequent relief association, all other applicable municipalities are jointly obligated to provide the required funding upon certification by the relief association secretary. An applicable municipality that pays the minimum municipal obligation for another applicable municipality, the municipality may collect the payment amount, plus a 25 percent surcharge, from the responsible applicable municipality by any available means, including deduction from any state aid or payment amount payable to the responsible municipality upon certification of the necessary information to the commissioner of finance.
Sec. 11. [424B.20] [DISSOLUTION WITHOUT CONSOLIDATION.]
Subdivision 1. [APPLICABLE DISSOLUTIONS.] This section applies if the fire department associated with a volunteer firefighter relief association is dissolved or eliminated by action of the governing body of the municipality in which the fire department was located or by the independent nonprofit firefighting corporation, whichever applies, and no consolidation with another volunteer firefighter relief association under sections 424B.01 to 424B.10 is sought, or if a volunteer firefighter relief association is dissolved or eliminated with municipal approval, but the fire department associated with the volunteer firefighter relief association is not dissolved or eliminated, and no consolidation with another volunteer firefighter relief association under sections 424B.01 to 424B.10 is applicable.
Subd. 2. [PROCEDURES.] As part of the dissolution process, all legal obligations of the relief association other than service pensions and benefits must be settled under subdivision 3, a benefit trust must be established under subdivision 4, and the affairs of the relief association must be concluded under subdivision 5.
Subd. 3. [SETTLEMENT OF NONBENEFIT LEGAL OBLIGATIONS.] (a) Prior to the effective date of the dissolution of the volunteer firefighter relief association established by the relief association board of trustees, the board shall determine the following:
(1) the fair market value of the assets of the special fund;
(2) the total amount of the accounts payable and other legal obligations of the special fund, excluding the accrued liability of the special fund for service pensions and other benefits; and
(3) the accrued liability of the special fund for service pensions and other benefits payable or accrued under the applicable bylaws of the relief association and chapter 424A.
(b) On or before the effective date of the dissolution of the volunteer firefighter relief association, the board shall liquidate sufficient special fund assets to pay the legal obligations of the special fund and must settle those legal obligations.
(c) On or before the effective date of the dissolution of the volunteer firefighter relief association, the board shall settle the legal obligations of the general fund of the relief association.
Subd. 4. [BENEFIT TRUST FUND ESTABLISHMENT.] (a) After the settlement of nonbenefit legal obligations of the special fund of the volunteer firefighter relief association under subdivision 3, the board of the relief association shall transfer the remaining assets of the special fund, as securities or in cash, as applicable, to the chief financial official of the municipality in which the associated fire department was located if the fire department was a municipal fire department or to the chief financial official of the municipality with the largest population served by the fire department if the fire department was an independent nonprofit firefighting corporation. The board shall also compile a schedule of the relief association members to whom a service pension is or will be owed, any beneficiary to whom a benefit is owed, the amount of the service pension or benefit payable based on the applicable bylaws and state law and the service rendered to the date of the dissolution, and the date on which the pension or benefit would first be payable under the bylaws of the relief association and state law.
(b) The municipality in which is located a volunteer firefighter relief association that is dissolving under this section shall establish a separate account in the municipal treasury which must function as a trust fund for members of the volunteer firefighter relief association and their beneficiaries to whom the volunteer firefighter relief association owes a service pension or other benefit under the bylaws of the relief association and state law. Upon proper application, on or after the initial date on which the service pension or benefit is payable, the municipal treasurer shall pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the other records of the dissolved relief association. The trust fund under this section must be invested and managed consistent with section 69.775 and chapter 356A. Upon payment of the last service pension or benefit due and owing, any remaining assets in the trust fund cancel to the general fund of the municipality. If the special fund of the volunteer firefighter relief association had an unfunded actuarial accrued liability upon dissolution, the municipality is liable for that unfunded actuarial accrued liability.
Subd. 5. [RELIEF ASSOCIATION AFFAIRS WIND-UP.] Upon dissolution, the board of trustees of the volunteer firefighter relief association shall transfer the records of the relief association to the chief administrative officer of the applicable municipality. The board shall also notify the commissioner of revenue, the state auditor, and the secretary of state of the dissolution within 30 days of the effective date of the dissolution.
Sec. 12. [424B.21] [ANNUITY PURCHASES UPON DISSOLUTION.]
The board of trustees of a volunteer firefighter relief association that is scheduled for dissolution may purchase annuity contracts under section 424A.02, subdivision 8a, instead of transferring special fund assets to a municipal trust fund under section 424B.20, subdivision 4. Payment of an annuity for which a contract is purchased may not commence before the retirement age specified in the relief association bylaws and in compliance with section 424A.02, subdivision 1. Legal title to the annuity contract transfers to the municipal trust fund under section 424B.20, subdivision 4.
Sec. 13. [REPEALER.]
Minnesota Statutes 1998, section 424A.02, subdivision 11, is repealed.
Sec. 14. [EFFECTIVE DATE.]
Sections 1 to 13 are effective on July 1, 2000.
ARTICLE 17
MINNEAPOLIS POLICE AND FIREFIGHTERS
RELIEF ASSOCIATION CHANGES
Section 1. Minnesota Statutes 1998, section 423B.01, is amended to read:
423B.01 [MINNEAPOLIS POLICE RELIEF ASSOCIATION; DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of sections 423B.01 to 423B.18, unless the context clearly indicates otherwise, each of the terms defined in this section has the indicated meaning.
Subd. 2. [ACTIVE MEMBER.] "Active member" means a person who was hired and duly appointed by the city of Minneapolis before May 1, 1959, as a police stenographer, police clerk, police telephone operator, police radio operator, or police mechanic or before June 15, 1980, as a police officer, police matron, or assistant police matron, who is regularly entered on the payroll of the police department, and who serves on active duty.
Subd. 3. [ACTIVE MEMBER PERCENTAGE.] The "active member percentage" is the total number of units accrued by active members of the association divided by the sum of the total number of units to which eligible members are entitled and active members of the association have accrued.
Subd. 4. [AGE.] "Age" means a person's age at the person's latest birthday.
Subd. 4 5. [ANNUAL POSTRETIREMENT PAYMENT.] "Annual postretirement payment"
means the payment of a lump sum postretirement benefit under section 423B.15 to an eligible member on June 1
following the determination date in any year.
Subd. 5 6. [ASSOCIATION.] "Association" means the Minneapolis police relief
association.
Subd. 7. [CITY.] "City" means the city of Minneapolis.
Subd. 8. [DETERMINATION DATE.] "Determination date" means December 31 of each year.
Subd. 6 9. [DISABILITY.] "Disability" means a physical or mental incapacity of an active
member to perform the duties of the person's position in the service of the police department.
Subd. 7 10. [DISCHARGE.] "Discharge" means a complete separation from service in the police
department.
Subd. 8 11. [ELIGIBLE MEMBER.] "Eligible member" means a person, including a service
pensioner, a disability pensioner, a survivor, or dependent of a deceased active member, service pensioner, or
disability pensioner, who received a pension or benefit from the relief association during the 12 months before the
determination date.
Subd. 9 12. [EXCESS INVESTMENT INCOME.] "Excess investment income" means the
amount, if any, by which the average time weighted total rate of return earned by the fund in the most recent prior
five fiscal years has exceeded the actual average percentage increase in the current monthly salary of a first grade
patrol officer in the most recent prior five fiscal years plus two percent, and must be expressed as a dollar amount.
The amount may not exceed one percent of the total assets of the fund, except when the actuarial value of assets of
the fund according to the most recent annual actuarial valuation prepared in accordance with sections 356.215 and
356.216 is greater than 102 percent of its actuarial accrued liabilities, in which case the amount must not exceed
1-1/2 percent of the total assets of the fund, and does not exist unless the yearly average percentage increase of the
time weighted total rate of return of the fund for the previous five years exceeds by two percent the yearly average
percentage increase in monthly salary of a first grade patrol officer during the previous five calendar years.
Subd. 10 13. [FUND.] "Fund" means the special fund of the relief association.
Subd. 14. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess asset amount payment" means the payment of an additional postretirement payment under section 2 to an eligible member on June 1 following the determination date in the given year.
Subd. 15. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total excess asset amount" is the total excess asset amount stated in dollars and multiplied by the quantity one minus the active member percentage.
Subd. 11 16. [RETIRED MEMBER.] "Retired member" means a former active member who
has terminated active service in the police department and who is entitled to receive a pension or benefit under
sections 423B.01 to 423B.18, as amended, or any predecessor law.
Subd. 12 17. [SURVIVING SPOUSE MEMBER.] "Surviving spouse member" means the person
who was the legally married spouse of the member, who was residing with the decedent, and who was married while
or before the time the decedent was an active member and was on the payroll of the police department, and who, in
case the deceased member was a pensioner or deferred pensioner, was legally married to the member at least one
year before the decedent's termination of active service with the police department. The term does not include the
surviving spouse who has deserted a member or who has not been dependent upon the member for support, nor does
it include the surviving common law spouse of a member.
Subd. 13 18. [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time weighted total rate of
return" means the percentage amount determined by using the formula or formulas established by the state board
of investment under section 11A.04, clause (11), and in effect on January 1, 1987.
Subd. 19. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess asset amount" means the difference, if positive, expressed in dollars, between the fund's market value of assets after any deductions required by section 423B.15, subdivision 2, and 110 percent of the actuarial accrued liabilities based on the actuarial valuation indicated in paragraph (b).
(b) The total excess asset amount in paragraph (a) exists if the actuarial liability funding ratio, according to the most recent annual actuarial valuation for the fund prepared in accordance with sections 69.77, 356.215, and 356.216, with adjustments required by section 423B.15, subdivision 2, equals or exceeds 110 percent.
Subd. 14 20. [UNIT.] "Unit" means one-eightieth of the current monthly salary of a first grade
patrol officer.
Subd. 15 21. [ACTUARIAL EQUIVALENT.] "Actuarial equivalent" or "actuarially equivalent"
means the condition of one annuity or benefit having an equal actuarial present value as another annuity or benefit,
determined as of a given date at a specified age with each actuarial present value based on the appropriate mortality
table adopted by the board of directors based on the experience of the fund and approved by the actuary retained by
the legislative commission on pensions and retirement and using the applicable preretirement or postretirement
interest rate assumptions specified in section 356.216.
Sec. 2. [423B.151] [EXCESS ASSET AMOUNT PAYMENT.]
Subdivision 1. [DETERMINATION OF NET TOTAL EXCESS AMOUNT.] The board of the association shall determine by May 1 of each year whether the fund has a total excess asset amount for that year. If a total excess asset amount exists for the given year, the net total excess asset amount shall be determined. The total excess asset amount and net total excess asset amount shall be reported to the chief administrative officer of the association, the mayor and governing body of the city, the state auditor, the commissioner of finance, and the executive director of the legislative commission on pensions and retirement. The portion of the net excess asset amount which is distributed under this section must not be considered as income to or assets of the fund for actuarial valuations of the fund for that year under sections 69.77, 356.215, 356.216, and this act, except to offset the amount distributed.
Subd. 2. [TOTAL AVAILABLE FOR PAYMENT.] Twenty percent of the net total excess asset amount determined under subdivision 1 is available for excess asset amount payments under subdivision 3.
Subd. 3. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as limited under subdivision 4, the net excess asset amount payment to an eligible member is equal to the amount determined under subdivision 2 multiplied by the units applicable to the eligible member and divided by the total units of all eligible members.
Subd. 4. [ENTITLEMENT; PRIORITY.] A person who is an eligible member for the entire 12 months before the determination date is eligible for a full excess asset amount payment under subdivision 2. A person who is an eligible member for less than 12 months before the determination date is eligible for a prorated excess asset amount payment. If an eligible member dies after the determination date and before the excess asset amount payment commences, the association must pay the eligible member's excess asset amount payment to the eligible member's surviving spouse or, if no surviving spouse, to the member's estate.
Subd. 5. [PAYMENT METHOD.] The excess asset amount payments determined under this section commence on June 1 following the determination date. These amounts may be paid as a lump sum, disbursed to the eligible members in 12 equal monthly installments, or any other manner which the board shall determine.
Subd. 6. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT PAYMENT.] No provision of this act may be interpreted or relied upon by any member of the association to guarantee or entitle a member to a net excess asset amount payment relating to any year in which there is no net total excess asset amount.
Sec. 3. [423B.19] [CITY OF MINNEAPOLIS; NORMAL COST CONTRIBUTION ADJUSTMENT.]
Notwithstanding section 69.77, 356.215, 356.216, or any other law to the contrary, the required city contributions toward the association's normal cost, as determined by the actuary, are reduced below that otherwise payable by the full amount of active member contributions required by law to be directed to the association's health insurance escrow account rather than to the special fund.
Sec. 4. [423B.20] [SUSPENSION OF NORMAL COST CONTRIBUTIONS.]
Notwithstanding the provisions of section 69.77 or any other law to the contrary, if a total excess asset amount exists, as defined in section 423B.01, subdivision 19, the city is not required to make a contribution to the fund for the normal cost of active members.
Sec. 5. [423B.21] [CHANGE IN AMORTIZATION PERIOD.]
Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding section 69.77, subdivision 2b; 356.215; 356.216; or any other law to the contrary, if the actuarial report for the association indicates an unfunded actuarial accrued liability after the fund has first achieved 100 percent funding, the unfunded obligation is to be amortized on a level dollar basis by December 31 of the year occurring 15 years later. If subsequent actuarial valuations determine a net actuarial experience loss incurred during the year which ended as of the day before the most recent actuarial valuation date, any unfunded liability due to that loss is to be amortized on a level dollar basis by December 31 of the year occurring 15 years later.
Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the amortization period may not exceed the average life expectancy of the remaining members.
Sec. 6. [MINNEAPOLIS FIRE RELIEF ASSOCIATION; SURVIVOR BENEFIT PAYMENT.]
Subdivision 1. [SURVIVING SPOUSE BENEFIT ELIGIBILITY.] (a) Notwithstanding Laws 1997, chapter 233, article 4, section 12, or other law to the contrary, an eligible individual specified in paragraph (b) is authorized to receive the benefit specified in subdivision 2.
(b) An eligible individual is an individual born on May 27, 1927, who married a Minneapolis fire relief association retiree on January 16, 1993, and who is a surviving spouse due to the death of that retired firefighter on October 2, 1997.
Subd. 2. [BENEFIT.] (a) An eligible individual under subdivision 1, paragraph (b), is entitled to a surviving spouse benefit computed under paragraph (f), as added by Laws 1997, chapter 233, article 4, section 12.
(b) Benefits payable as a result of the benefit authorized in paragraph (a) commence on the first of the month following the effective date of this section.
Sec. 7. [DEFINITIONS.]
Subdivision 1. [DEFINITIONS.] Unless the context clearly indicates otherwise, the following terms have the meaning given in this section.
Subd. 2. [ACTIVE MEMBER PERCENTAGE.] The "active member percentage" is the total number of units accrued by active members of the association divided by the sum of the total number of units to which eligible members are entitled and active members of the association have accrued.
Subd. 3. [ASSOCIATION.] "Association" means the Minneapolis firefighters relief association.
Subd. 4. [CITY.] "City" means the city of Minneapolis.
Subd. 5. [ELIGIBLE MEMBER.] "Eligible member" is a person who receives a service, survivor, or disability pension payable from the special fund of the association.
Subd. 6. [FUND.] "Fund" means the association's special fund.
Subd. 7. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess asset amount payment" means the payment of an additional postretirement payment under section 3 to an eligible member on June 1 following the determination date in the given year.
Subd. 8. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total excess asset amount" is the total excess asset amount stated in dollars and multiplied by the quantity one minus the active member percentage.
Subd. 9. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess asset amount" means the difference, if positive, expressed in dollars, between the fund's market value of assets after any deductions required by Laws 1989, chapter 319, article 19, section 7, subdivision 3, as amended, and 110 percent of the actuarial accrued liabilities based on the actuarial valuation indicated in paragraph (b).
(b) The total excess asset amount in paragraph (a) exists if the actuarial liability funding ratio, according to the most recent annual actuarial valuation for the fund prepared in accordance with Minnesota Statutes, sections 69.77, 356.215, and 356.216, with adjustments required by Laws 1989, chapter 319, article 19, section 7, subdivision 3, as amended, equals or exceeds 110 percent.
Sec. 8. [DETERMINATION OF NET TOTAL EXCESS ASSET AMOUNT.]
The board of the association shall determine by May 1 of each year whether the fund has a total excess asset amount for that year. If a total excess asset amount exists for the given year, the net total excess asset amount shall be determined. The total excess asset amount and net total excess asset amount shall be reported to the chief administrative officer of the association, the mayor and governing body of the city, the state auditor, the commissioner of finance, and the executive director of the legislative commission on pensions and retirement. The portion of the net excess asset amount which is distributed under section 9 must not be considered as income to or assets of the fund for actuarial valuations of the fund for that year under Minnesota Statutes, sections 69.77, 356.215, and 356.216, and this act, except to offset the amount distributed.
Sec. 9. [AMOUNT OF NET EXCESS ASSET AMOUNT PAYMENT.]
Subdivision 1. [TOTAL AVAILABLE FOR PAYMENT.] Twenty percent of the net total excess asset amount determined under section 8 is available for net excess asset amount payments under subdivision 2.
Subd. 2. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as limited under subdivision 3, the net excess asset amount payment to an eligible member is equal to the amount determined under subdivision 1 multiplied by the units applicable to the eligible member and divided by the total units of all eligible members.
Subd. 3. [ENTITLEMENT; PRIORITY.] A person who is an eligible member for the entire 12 months before the determination date is eligible for a full net excess asset amount payment under subdivision 2. A person who is an eligible member for less than 12 months before the determination date is eligible for a prorated net excess asset amount payment. If an eligible member dies after the determination date and before the excess asset amount payment commences, the association must pay that eligible member's net excess asset amount payment to the eligible member's estate.
Subd. 4. [PAYMENT METHOD.] The net excess asset amount payments determined under subdivisions 2 and 3 commence on June 1 following the determination date. These amounts may be paid as a lump sum, disbursed to the eligible members in 12 equal monthly installments, or any other manner which the board shall determine.
Sec. 10. [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.]
Notwithstanding Minnesota Statutes, sections 69.77, 356.215, and 356.216, or other law to the contrary, the required city contributions toward the association's normal cost, as determined by the actuary, are reduced below that otherwise payable by the full amount of active member contributions required by law to be directed to the association's health insurance escrow account rather than to the special fund.
Sec. 11. [SUSPENSION OF NORMAL COST CONTRIBUTIONS.]
Notwithstanding the provisions of Minnesota Statutes, section 69.77, or any other law to the contrary, if a total excess asset amount exists, as defined in section 7, subdivision 9, the city is not required to make a contribution to the fund for the normal cost of active members.
Sec. 12. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT PAYMENT.]
No provision of this act may be interpreted or relied upon by any member of the association to guarantee or entitle a member to a net excess asset amount payment relating to any year in which there is no net total excess asset amount.
Sec. 13. [CHANGE IN AMORTIZATION PERIOD.]
Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding Minnesota Statutes, section 69.77, subdivision 2b; 356.215; 356.216; or any other law to the contrary, if the actuarial report for the Minneapolis firefighters relief association indicates an unfunded actuarial accrued liability, the unfunded obligation is to be amortized on a level dollar basis by December 31 of the year occurring 15 years later. If subsequent actuarial valuations determine a net actuarial experience loss incurred during the year which ended as of the day before the most recent actuarial valuation date, any unfunded liability due to that loss is to be amortized on a level dollar basis by December 31 of the year occurring 15 years later.
Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the amortization period may not exceed the average life expectancy of the remaining members.
Sec. 14. [EFFECTIVE DATE.]
(a) Sections 1 to 5 are effective on the day after the date on which the Minneapolis city council and the chief clerical officer of the city of Minneapolis complete, in a timely manner, their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
(b) Section 6 is effective on the day after the date on which the Minneapolis city council and the chief clerical officer of the city of Minneapolis complete, in a timely manner, their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Section 5, if approved, applies retroactively to contributions beginning after July 1, 1990.
(c) Sections 7 to 13 are effective on the day after the date on which the Minneapolis city council and the chief clerical officer of the city of Minneapolis complete, in a timely manner, their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Section 5, if approved, applies retroactively to contributions beginning after July 1, 1990.
ARTICLE 18
JUDGES RETIREMENT PLAN
MODIFICATIONS
Section 1. Minnesota Statutes 1998, section 352D.02, subdivision 1, is amended to read:
Subdivision 1. [COVERAGE.] (a) Employees enumerated in paragraph (c), clauses (2), (3), (4), and (6) to (15), if they are in the unclassified service of the state or metropolitan council and are eligible for coverage under the general state employees retirement plan under chapter 352, are participants in the unclassified program under this chapter unless the employee gives notice to the executive director of the Minnesota state retirement system within one year following the commencement of employment in the unclassified service that the employee desires coverage under the general state employees retirement plan. For the purposes of this chapter, an employee who does not file notice with the executive director is deemed to have exercised the option to participate in the unclassified plan.
(b) Persons referenced in paragraph (c), clauses (1) and (5), are participants in the unclassified program under this chapter unless the person is eligible to elect different coverage under section 3A.07 or 352C.011 and, after July 1, 1998, elects retirement coverage by the applicable alternative retirement plan. Persons referenced in paragraph (c), clause (16), are participants in the unclassified program under this chapter for judicial employment in excess of the service credit limit in section 490.121, subdivision 22.
(c) Enumerated employees and referenced persons are:
(1) the governor, the lieutenant governor, the secretary of state, the state auditor, the state treasurer, and the attorney general;
(2) an employee in the office of the governor, lieutenant governor, secretary of state, state auditor, state treasurer, attorney general;
(3) an employee of the state board of investment;
(4) the head of a department, division, or agency created by statute in the unclassified service, an acting department head subsequently appointed to the position, or an employee enumerated in section 15A.0815 or 15A.083, subdivision 4;
(5) a member of the legislature;
(6) a permanent, full-time unclassified employee of the legislature or a commission or agency of the legislature or a temporary legislative employee having shares in the supplemental retirement fund as a result of former employment covered by this chapter, whether or not eligible for coverage under the Minnesota state retirement system;
(7) a person who is employed in a position established under section 43A.08, subdivision 1, clause (3), or in a position authorized under a statute creating or establishing a department or agency of the state, which is at the deputy or assistant head of department or agency or director level;
(8) the regional administrator, or executive director of the metropolitan council, general counsel, division directors, operations managers, and other positions as designated by the council, all of which may not exceed 27 positions at the council and the chair, provided that upon initial designation of all positions provided for in this clause, no further designations or redesignations may be made without approval of the board of directors of the Minnesota state retirement system;
(9) the executive director, associate executive director, and not to exceed nine positions of the higher education services office in the unclassified service, as designated by the higher education services office before January 1, 1992, or subsequently redesignated with the approval of the board of directors of the Minnesota state retirement system, unless the person has elected coverage by the individual retirement account plan under chapter 354B;
(10) the clerk of the appellate courts appointed under article VI, section 2, of the Constitution of the state of Minnesota;
(11) the chief executive officers of correctional facilities operated by the department of corrections and of hospitals and nursing homes operated by the department of human services;
(12) an employee whose principal employment is at the state ceremonial house;
(13) an employee of the Minnesota educational computing corporation;
(14) an employee of the world trade center board; and
(15) an employee of the state lottery board who is covered by the managerial plan established under section 43A.18, subdivision 3; and
(16) a judge who has exceeded the service credit limit in section 490.121, subdivision 22.
Sec. 2. Minnesota Statutes 1998, section 352D.04, subdivision 2, is amended to read:
Subd. 2. [CONTRIBUTION RATES.] (a) The money used to purchase shares under this section is the employee and employer contributions provided in this subdivision.
(b) The employee contribution is an amount equal to the employee contribution specified in section 352.04, subdivision 2.
(c) The employer contribution is an amount equal to six percent of salary.
(d) These contributions must be made in the manner provided in section 352.04, subdivisions 4, 5, and 6.
(e) For members of the legislature, the contributions under this subdivision also must be made on per diem payments received during a regular or special legislative session, but may not be made on per diem payments received outside of a regular or special legislative session, on the additional compensation attributable to a leadership position under section 3.099, subdivision 3, living expense payments under section 3.101, or special session living expense payments under section 3.103.
(f) For a judge who is a member of the unclassified plan under section 352D.02, subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent of salary, and there is no employer contribution.
Sec. 3. Minnesota Statutes 1998, section 356.30, subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) Notwithstanding any provisions to the contrary of the laws governing the funds enumerated in subdivision 3, a person who has met the qualifications of clause (2) may elect to receive a retirement annuity from each fund in which the person has at least six months allowable service, based on the allowable service in each fund, subject to the provisions of clause (3).
(2) A person may receive upon retirement a retirement annuity from each fund in which the person has at least six months allowable service, and augmentation of a deferred annuity calculated under the laws governing each public pension plan or fund named in subdivision 3, from the date the person terminated all public service if:
(a) the person has allowable service totaling an amount that allows the person to receive an annuity in any two or more of the enumerated funds; and
(b) the person has not begun to receive an annuity from any enumerated fund or the person has made application for benefits from all funds and the effective dates of the retirement annuity with each fund under which the person chooses to receive an annuity are within a one-year period.
(3) The retirement annuity from each fund must be based upon the allowable service in each fund, except that:
(a) The laws governing annuities must be the law in effect on the date of termination from the last period of public service under a covered fund with which the person earned a minimum of one-half year of allowable service credit during that employment.
(b) The "average salary" on which the annuity from each covered fund in which the employee has credit in a formula plan shall be based on the employee's highest five successive years of covered salary during the entire service in covered funds.
(c) The formula percentages to be used by each fund must be those percentages prescribed by each fund's formula as continued for the respective years of allowable service from one fund to the next, recognizing all previous allowable service with the other covered funds.
(d) Allowable service in all the funds must be combined in determining eligibility for and the application of each fund's provisions in respect to actuarial reduction in the annuity amount for retirement prior to normal retirement.
(e) The annuity amount payable for any allowable service under a nonformula plan of a covered fund must not be affected but such service and covered salary must be used in the above calculation.
(f) This section shall not apply to any person whose final termination from the last public service under a covered fund is prior to May 1, 1975.
(g) For the purpose of computing annuities under this section the formula percentages used by any covered fund, except the public employees police and fire fund, the judges' retirement fund, and the state patrol retirement fund, must not exceed the percent specified in section 356.19, subdivision 4, per year of service for any year of service or fraction thereof. The formula percentage used by the public employees police and fire fund and the state patrol retirement fund must not exceed the percent specified in section 356.19, subdivision 6, per year of service for any year of service or fraction thereof. The formula percentage used by the judges' retirement fund must not exceed the percent specified in section 356.19, subdivision 8, per year of service for any year of service or fraction thereof. The formula percentage used by the legislators retirement plan and the elective state officers retirement must not exceed 2.5 percent, but this limit does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph (c), or 352C.031, paragraph (b).
(h) Any period of time for which a person has credit in more than one of the covered funds must be used only once for the purpose of determining total allowable service.
(i) If the period of duplicated service credit is more than six months, or the person has credit for more than six months with each of the funds, each fund shall apply its formula to a prorated service credit for the period of duplicated service based on a fraction of the salary on which deductions were paid to that fund for the period divided by the total salary on which deductions were paid to all funds for the period.
(j) If the period of duplicated service credit is less than six months, or when added to other service credit with that fund is less than six months, the service credit must be ignored and a refund of contributions made to the person in accord with that fund's refund provisions.
Sec. 4. Minnesota Statutes 1998, section 490.121, subdivision 4, is amended to read:
Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" means a whole year, or any fraction thereof, subject to the service credit limit in subdivision 22, served as a judge at any time, or served as a referee in probate for all referees in probate who were in office prior to January 1, 1974.
Sec. 5. Minnesota Statutes 1998, section 490.121, is amended by adding a subdivision to read:
Subd. 22. [SERVICE CREDIT LIMIT.] "Service credit limit" means the greater of: (1) 24 years of allowable service under chapter 490; or (2) for judges with allowable service rendered prior to July 1, 1980, the number of years of allowable service under chapter 490, which, when multiplied by the percentage listed in section 356.19, subdivision 7 or 8, whichever is applicable to each year of service, equals 76.8.
Sec. 6. Minnesota Statutes 1998, section 490.123, subdivision 1a, is amended to read:
Subd. 1a. [MEMBER CONTRIBUTION RATES.] (a) A judge who is covered by the federal old age, survivors, disability, and health insurance program whose service does not exceed the service credit limit in section 490.121, subdivision 22, shall contribute to the fund from each salary payment a sum equal to 8.00 percent of salary.
(b) A judge not so covered whose service does not exceed the service credit limit in section 490.121, subdivision 22, shall contribute to the fund from each salary payment a sum equal to 8.15 percent of salary.
(c) The contribution under this subdivision is payable by salary deduction.
Sec. 7. Minnesota Statutes 1998, section 490.123, subdivision 1b, is amended to read:
Subd. 1b. [EMPLOYER CONTRIBUTION RATE.] The employer contribution rate to the fund on behalf of a judge is 20.5 percent of salary and continues after a judge exceeds the service credit limit in section 490.121, subdivision 22.
The employer contribution must be paid by the state court administrator and is payable at the same time as member contributions under subdivision 1a or employee contributions to the unclassified plan in chapter 352D for judges whose service exceeds the limit in section 490.121, subdivision 22, are remitted.
Sec. 8. Minnesota Statutes 1998, section 490.124, subdivision 1, is amended to read:
Subdivision 1. [BASIC RETIREMENT ANNUITY.] Except as qualified hereinafter from and after mandatory
retirement date, normal retirement date, early retirement date, or one year from the disability retirement date, as the
case may be, a retirement annuity shall be payable to a retiring judge from the judges' retirement fund in an amount
equal to: (1) the percent specified in section 356.19, subdivision 7, multiplied by the judge's final average
compensation multiplied by the number of years and fractions of years of allowable service rendered prior to
July 1, 1980; plus (2) the percent specified in section 356.19, subdivision 8, multiplied by the judge's final
average compensation multiplied by the number of years and fractions of years of allowable service rendered after
June 30, 1980; provided that the annuity must not exceed 70 percent of the judge's annual salary for the 12
months immediately preceding retirement. Service that exceeds the service credit limit in section 490.121,
subdivision 22, must be excluded in calculating the retirement annuity, but compensation earned during this service
must be used in determining a judge's final average compensation and calculating the retirement annuity.
Sec. 9. [PRIOR SERVICE.]
This section applies to a person who is a judge on July 1, 2000, and whose service under Minnesota Statutes, chapter 490, on that date exceeds the service credit limit in Minnesota Statutes, section 490.121, subdivision 22. A judge to whom this section applies may elect to have money transferred from the judges' plan to the judge's account in the unclassified employees plan in Minnesota Statutes, chapter 352D. The amount to be transferred is eight percent of the salary the judge earned after reaching the service credit limit defined in Minnesota Statutes, section 490.121, subdivision 22. A judge electing this transfer forfeits all service credit under Minnesota Statutes, chapter 490, that exceeds the limit in Minnesota Statutes, section 490.121, subdivision 22. An election under this section must be made before retirement as a judge, and within 120 days of the effective date of this section. The election must be made on a form and in a manner specified by the executive director of the Minnesota state retirement system.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 9 are effective on July 1, 2000.
ARTICLE 19
VARIOUS INDIVIDUAL AND SMALL
GROUP PENSION PROVISIONS
Section 1. [MSRS-GENERAL; LATE DISABILITY BENEFIT APPLICATION AUTHORIZED.]
(a) Notwithstanding any provision of Minnesota Statutes, section 352.113, subdivision 4, to the contrary, a person described in paragraph (b) is authorized to apply for a disability benefit from the general state employees retirement plan of the Minnesota state retirement system under Minnesota Statutes, section 352.113.
(b) An eligible person is a person who:
(1) was born on October 3, 1952;
(2) was employed by the department of economic security from August 1978 to December 1994;
(3) is disabled within the meaning of Minnesota Statutes, section 352.01, subdivision 17;
(4) began receiving social security disability insurance benefits in January 1995; and
(5) began part-time employment in January 1998 and continues in that employment with the Minnesota state council on disability.
(c) The eligible person under paragraph (b) must provide, in conjunction with the disability application, any relevant evidence that the executive director of the Minnesota state retirement system requires about the existence of a total and permanent disability as defined in Minnesota Statutes, section 352.01, subdivision 17, and about the date on which the disability occurred and its relationship to the termination of active service in December 1994.
(d) If the eligible person files a disability benefit application and if the eligible person provides sufficient evidence of disability and the occurrence of the disability under paragraph (c), the disability benefit becomes payable for the first month next following the application and applicable evidence. The disability benefit must be calculated under the laws in effect at the time that the eligible person terminated active service in December 1994. The disability benefit must include any applicable deferred annuities augmentation under Minnesota Statutes, section 352.72, subdivision 2.
(e) Nothing in this section may be deemed to exempt the eligible person from the partial reemployment of a disabilitant provision described in Minnesota Statutes, section 352.113, subdivision 7.
Sec. 2. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SERVICE CREDIT PURCHASE FOR UNCREDITED HENNEPIN COUNTY EMPLOYMENT.]
(a) An eligible person described in paragraph (b) is entitled to obtain one year of allowable service credit from the general employees retirement plan of the public employees retirement association.
(b) An eligible person is a person who:
(1) was born April 12, 1936;
(2) retired from the teachers retirement association on July 1, 1997;
(3) is currently a recipient of a retirement annuity from the teachers retirement association and a retirement annuity from the general state employees retirement plan of the Minnesota state retirement system; and
(4) was employed during the period September 1966 through September 1967 by Hennepin county as a parole officer, when member contributions for retirement coverage were deducted, but for which no allowable service credit in the general employees retirement plan of the public employees retirement association was recorded.
(c) Notwithstanding any provision of Minnesota Statutes, sections 353.29, subdivision 7, and 356.30, to the contrary, an eligible person may file an application for a retirement annuity from the general employees retirement plan of the public employees retirement association retroactive to July 1, 1997, with benefits paid retroactive to that date, and may have the annuity calculated as a combined service annuity.
(d) The allowable service credit must be granted by the public employees retirement association upon the filing of a valid retirement application by the eligible person.
(e) Within 30 days of the receipt of that application by the public employees retirement association and notification by the public employees retirement association to the county administrator, Hennepin county may pay one-half of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55. If Hennepin county does not pay the required amount in a timely fashion, the executive director of the public employees retirement association shall notify the commissioner of finance of that fact and the commissioner shall deduct from any state aid or state appropriation payable to Hennepin county that amount, plus interest on that amount of 1.5 percent per month for each month or portion of a month from the filing of the retirement application under paragraph (d) to the date of deduction.
(f) An amount equal to one-half of the prior service credit purchase payment amount calculated under Minnesota Statutes, section 356.55, must be charged against the public employees retirement association as an administrative expense.
(g) This allowable service credit provision expires on January 1, 2001.
Sec. 3. [PAYMENT OF OMITTED SALARY DEDUCTIONS.]
Subdivision 1. [APPLICATION.] A person who was born on October 23, 1943, was employed by Dakota county as a part-time maintenance employee on October 16, 1985, and first had public employees retirement association member contributions deducted as of September 15, 1986, is entitled to purchase eight months of service credit from the public employees retirement association.
Subd. 2. [PAYMENT.] The purchase payment amount for the service credit purchase authorized in subdivision 1 is governed by Minnesota Statutes, section 356.55. Notwithstanding any provision of Minnesota Statutes, section 356.55, subdivision 5, to the contrary, the eligible person must pay, on or before June 1, 2001, an amount equal to the employee contribution rate applied to the person's actual salary rate in effect between January 17, 1986, and September 15, 1986, plus annual compound interest at the rate of 8.5 percent from the date that the employer contributions should have been paid and the date of actual payment. Dakota county shall pay the balance of the required purchase payment amount within 30 days of the payment by the eligible person. If Dakota county fails to pay its required amount, the executive director of the public employees retirement association may notify the commissioner of finance of that fact and the commissioner of finance may order that the required amount be deducted from any subsequent state payment to Dakota county and transmitted to the public employees retirement association.
Subd. 3. [APPLICATION; DOCUMENTATION.] A person described in subdivision 1 must apply with the executive director of the public employees retirement association to make the purchase. The application must be in writing and must include all necessary documentation of the applicability of this section and any other relevant information that the executive director may require.
Subd. 4. [LIMITATION.] Authority under this section expires on July 1, 2001.
Sec. 4. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; REDUCED SERVICE CREDIT REQUIREMENT FOR DISABILITY BENEFIT APPLICATION.]
(a) An eligible person described in paragraph (b) is entitled to apply for a disability benefit from the general employees retirement plan of the public employees retirement association with 14 months of service credit subsequent to the person's last termination of membership, notwithstanding any provision to the contrary of Minnesota Statutes, section 353.33, subdivision 1.
(b) An eligible person is a person who:
(1) was born on May 30, 1945;
(2) began public employment with Todd county in November 1978;
(3) first terminated public employment in August 1982;
(4) resumed public employment with Morrison county in October 1987;
(5) subsequently terminated public employment with Meeker county in November 1997;
(6) resumed public employment with Todd county in August 1998; and
(7) subsequently terminated public employment October 8, 1999.
Sec. 5. [TEACHERS RETIREMENT ASSOCIATION; REFUND OF CERTAIN INTEREST CHARGES.]
(a) Upon filing a written demand for the interest refund, a person described in paragraph (b) is entitled to receive a refund of interest specified in paragraph (c) for the period during which the teachers retirement association was negligent in providing accurate information to the eligible person or was negligent in making timely reports to other Minnesota public pension plans in which the eligible person has service credit.
(b) An eligible person is a person who:
(1) retired from the teachers retirement association effective September 1, 1999;
(2) repaid a previously taken refund to the teachers retirement association on August 23, 1999, restoring 10.979 years of allowable service credit;
(3) began the retirement application and refund repayment process in February 1999 and was first able to file retirement forms with the teachers retirement association office on August 27, 1999; and
(4) was charged interest on the repayment of refund for the period during which the teachers retirement association failed to provide requested information and failed to contact the public employees retirement association and the St. Paul teachers retirement fund association.
(c) The refund interest rate is 0.708 percent per month, compounded monthly, on the refund repayment amount that would have been payable on April 15, 1999, applied to the period April 15, 1999, to August 23, 1999, and 8.5 percent per year, compounded annually, on that initially determined amount from August 23, 1999, until the interest repayment is made.
(d) The interest refund is payable on the first day of the month next following the date on which the eligible person files the written demand under paragraph (a).
Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR UNCREDITED TEACHING SERVICE PERIODS.]
(a) An eligible person described in paragraph (b) is entitled to purchase allowable service credit from the Minneapolis teachers retirement fund association basic program for the periods of teaching employment specified in paragraph (c) by making the payment required under Minnesota Statutes, section 356.55.
(b) An eligible person is a person who:
(1) was employed by special school district No. 1 (Minneapolis) as a long call reserve teacher from October 1972 to June 1973 and was covered by the Minneapolis employees retirement fund;
(2) was employed by special school district No. 1 (Minneapolis) as a school social worker at Franklin junior high school from August 28, 1973, through June 12, 1974, and from August 29, 1974, through June 11, 1975, without retirement coverage;
(3) was employed by special school district No. 1 (Minneapolis) as a school social worker at North high school from August 29, 1975, through December 19, 1975, covered by the Minneapolis teachers retirement fund association;
(4) was retained by special school district No. 1 (Minneapolis) in the capacity of a school social worker at North high school as an hourly wage social worker from August 1976 through June 1983 without retirement coverage; and
(5) is currently employed by Hennepin county covered by the public employees retirement association.
(c) The periods for allowable service credit purchase are August 28, 1973, through June 12, 1974; and August 29, 1974, through June 11, 1975.
(d) An eligible person must provide any relevant documentation related to eligibility to make this service credit purchase required by the executive director of the Minneapolis teachers retirement fund association.
(e) Allowable service credit for the purchase periods must be granted by the Minneapolis teachers retirement fund association to the account of the eligible person upon receipt of the prior service credit purchase payment amount.
(f) The prior service credit purchase payment amount shall be computed by the actuary retained by the legislative commission on pensions and retirement. That computation must, in applying the process stated in Minnesota Statutes, section 356.55, give recognition to the liabilities that would be created in the Minneapolis teachers retirement fund association and other Minnesota public pension funds due to the service credit purchase.
(g) Following receipt of that purchase payment amount, the executive director of the Minneapolis teachers retirement fund association shall allocate and transmit that amount to the applicable pension administrations, as determined under paragraph (f).
Sec. 7. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; PRIOR SERVICE CREDIT PURCHASE AUTHORIZATION.]
(a) Notwithstanding any provision of law to the contrary, a person described in paragraph (b) is authorized to purchase allowable service credit from the basic program of the Minneapolis teachers retirement fund association for the period described in paragraph (c) by making the payment specified in paragraph (d).
(b) An eligible person for purposes of paragraph (a) is a person who:
(1) was born on October 1, 1942;
(2) is currently employed by special school district No. 1 (Minneapolis) and is currently a member of the Minneapolis teachers retirement fund association;
(3) was initially hired by special school district No. 1 (Minneapolis) on November 13, 1967, and taught at Sanford junior high school until June 1968;
(4) was reemployed by special school district No. 1 (Minneapolis) as an adult basic education English and social studies teacher on May 25, 1970, and continued to teach in that program until December 17, 1984; and
(5) as a result of binding arbitration of an employment dispute, was employed by special school district No. 1 (Minneapolis) as an English teacher at Franklin junior high school on December 17, 1984.
(c) The service credit purchase period is any period between May 25, 1970, to December 17, 1984, that has not previously been credited by the Minneapolis teachers retirement fund association.
(d) To purchase the allowable service credit, the eligible person must pay to the Minneapolis teachers retirement fund association the prior service credit purchase payment calculated under Minnesota Statutes, section 356.55.
(e) The eligible person must provide all relevant documentation of the applicability of the requirements set forth in paragraph (b) and any other applicable information that the executive director of the Minneapolis teachers retirement fund association may request.
(f) This prior service credit purchase authority expires on July 1, 2001, or on the date of the eligible person's termination of active service with special school district No. 1 (Minneapolis), whichever is earlier.
Sec. 8. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR INDEPENDENT CONTRACT UNCREDITED TEACHING SERVICE PERIOD.]
(a) An eligible person described in paragraph (b) is authorized to purchase allowable service credit from the Minneapolis teachers retirement fund association for the period of teaching employment specified in paragraph (c) by making the payment required under Minnesota Statutes, section 356.55, by the last date authorized for receiving payment under that section, or the eligible person's effective date of retirement, whichever is earlier.
(b) An eligible person is a person who:
(1) was born on May 22, 1939;
(2) was employed by special school district No. 1 (Minneapolis) and covered as an active member by the Minneapolis teachers retirement fund association from July 27, 1962, to June 11, 1967; and
(3) was retained by special school district No. 1 (Minneapolis) at an hourly wage rate as a teacher in the adult basic education program from April 23, 1980, to September 28, 1992.
(c) The period for allowable service credit purchase is from April 23, 1980, to September 28, 1992.
(d) An eligible person under paragraph (b) must provide any relevant documentation related to eligibility to make this service credit purchase which is required by the executive director of the Minneapolis teachers retirement fund association.
(e) Allowable service credit for the purchase periods must be granted by the Minneapolis teachers retirement fund association to the account of the eligible person upon receipt of the prior service credit purchase payment amount.
(f) A service credit purchase is not authorized for any portion of the April 23, 1980, to September 28, 1992, period for which the eligible individual signed an independent contract which waives pension coverage by the Minneapolis teachers retirement fund association for the period covered by the contract, or for any period for which administrators for special school district No. 1 (Minneapolis) or the Minneapolis teachers retirement fund association determine that the individual was serving as an independent contractor.
Sec. 9. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY EMPLOYMENT PERIOD.]
(a) An eligible person described in paragraph (b) is entitled to purchase allowable service credit from the Minneapolis employees retirement fund for the period of temporary employment specified in paragraph (c) by making the payment required under Minnesota Statutes, section 356.55.
(b) An eligible person is a person who:
(1) was born on August 15, 1951;
(2) was hired by the city of Minneapolis as a maintenance worker/truck driver on June 1, 1976, and was covered by the Minneapolis employees retirement fund for that employment; and
(3) is currently employed by the city of Minneapolis and covered by the Minneapolis employees retirement association.
(c) The period for allowable service credit purchase is a period during 1975 during which the eligible person was employed by the city of Minneapolis as a temporary employee.
(d) An eligible person must provide any relevant documentation related to eligibility to make this service credit purchase required by the executive director of the Minneapolis employees retirement fund.
(e) Allowable service credit for the purchase periods must be granted by the Minneapolis employees retirement fund to the account of the eligible person upon receipt of the prior service credit purchase payment amount. To receive the service credit, the service credit purchase must be received by the Minneapolis employees retirement fund by October 1, 2001, or prior to retirement, whichever is earlier.
Sec. 10. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY EMPLOYMENT PERIOD.]
(a) An eligible person described in paragraph (b) is entitled to purchase allowable service credit from the Minneapolis employees retirement fund for the period or periods of temporary employment specified in paragraph (c) by making the payment required under Minnesota Statutes, section 356.55.
(b) An eligible person is a person who:
(1) was born on December 17, 1953;
(2) was hired by the city of Minneapolis as a full-time maintenance worker on February 2, 1974, and was covered by the Minneapolis employees retirement fund for that employment; and
(3) is currently employed by the city of Minneapolis, covered by the Minneapolis employees retirement association.
(c) The periods for allowable service credit purchase are periods during 1974 and 1975 during which the eligible person was employed by the city of Minneapolis as a temporary employee.
(d) An eligible person must provide any relevant documentation related to eligibility to make this service credit purchase required by the executive director of the Minneapolis employees retirement fund.
(e) Allowable service credit for the purchase periods must be granted by the Minneapolis employees retirement fund to the account of the eligible person upon receipt of the prior service credit purchase payment amount. To receive the service credit, the service credit purchase must be received by the Minneapolis employees retirement fund by October 1, 2001, or prior to retirement, whichever is earlier.
Sec. 11. [EFFECTIVE DATE.]
(a) Sections 1, 2, and 4 to 10 are effective on the day following final enactment.
(b) Section 3 is effective on the day after the date on which the Dakota county board of commissioners and the chief clerical officer of Dakota county complete, in a timely manner, their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
(c) Section 1 expires, if not utilized, on December 31, 2000."
Delete the title and insert:
"A bill for an act relating to retirement; pension plan actuarial reporting; various public retirement plans; volunteer firefighter relief associations; Minneapolis firefighters relief association; modifying actuarial cost allocation by the legislative commission on pensions and retirement; changing the actuarial value of assets, actuarial assumptions and funding surplus recognition method; revising reemployed annuitant earnings limitations; adding certain prior correctional positions to correctional plan coverage; clarifying various former police and fire consolidation account merger provisions; authorizing certain optional annuity form elections by former consolidation account members; revising local correctional retirement plan membership eligibility; increasing local correctional retirement plan member and employer contribution rates; authorizing the purchase of nonprofit community-based corporation teaching service; expanding investment options for employer matching contribution tax sheltered annuities; modifying various volunteer firefighter relief association benefit and administration provisions; modifying judicial pension provision; modifying the marriage duration requirement for certain Minneapolis firefighter relief association survivor benefits; creating additional Minneapolis police and firefighter relief association post retirement adjustment mechanisms; resolving various individual and small group pension problems; amending Minnesota Statutes 1998, sections 16A.055, subdivision 5; 69.773, subdivision 1; 122A.46, subdivision 1, and by adding a subdivision; 136F.43, subdivisions 1, 2, and 6; 136F.45, subdivision 1a; 352.115, subdivision 10; 352.15, subdivision 1a; 352.91, subdivisions 3c, 3d, and by adding subdivisions; 352B.01, subdivision 3, and by adding a subdivision; 352D.02, subdivision 1; 352D.04, subdivision 2; 352D.05, subdivision 3; 352D.06; 352D.09, subdivision 5a; 353.01, subdivisions 2, 6, 11a, 28, 32, and by adding a subdivision; 353.15, subdivision 2; 353.27, subdivisions 4 and 12; 353.33, subdivisions 2 and 6; 353.34, subdivision 1; 353.37, by adding a subdivision; 353.64, subdivisions 2, 3, 4, and by adding a subdivision; 353.656, subdivisions 1 and 3; 353.71, subdivision 2; 353B.11, subdivision 3; 354.05, subdivisions 2 and 35; 354.091; 354.092, subdivision 2; 354.093; 354.094, subdivision 1; 354.10, subdivision 2; 354.35; 354.44, subdivision 5; 354.46, subdivision 2a; 354.47, subdivision 1; 354.48, subdivision 6; 354.49, subdivision 1; 354.52, subdivisions 3, 4, 4a, and 4b; 354.63, subdivision 2; 354A.091, subdivisions 1, 2, 3, 5, and 6; 354A.31, subdivisions 3 and 3a; 354B.23, subdivision 5a; 354C.12, subdivision 1a; 354C.165; 356.215, subdivisions 1, 2, and 4d; 356.24, by adding a subdivision; 356.30, subdivision 1; 356A.01, subdivision 8; 356A.02; 356A.06, by adding a subdivision; 423B.01; 424A.001, subdivision 9; 424A.02, subdivisions 3, 7, 9, 13, and by adding a subdivision; 424A.04, subdivision 1; 424A.05, subdivision 3; 490.121, subdivision 4, and by adding a subdivision; 490.123, subdivisions 1a and 1b; and 490.124, subdivision 1; Minnesota Statutes 1999 Supplement, sections 3.85, subdivision 12; 69.021, subdivision 7; 136F.48; 352.1155, subdivisions 1 and 4; 353.01, subdivisions 2b and 10; 353.64, subdivision 1; 353E.02; 353E.03; 353F.02, subdivision 5; 354.445; 354.536, subdivision 1; 354A.101, subdivision 1; 356.215, subdivision 4g; 356.24, subdivisions 1 and 1b; and 423A.02, subdivisions 1b, 4 and 5; Laws 1965, chapter 705, section 1, subdivision 4, as amended; proposing coding for new law in Minnesota Statutes, chapters 69; 352; 353; 354; 354A; 356; and 423B; proposing coding for new law as Minnesota Statutes, chapter 424B; repealing Minnesota Statutes 1998, sections 352.91, subdivision 4; 353.024; 354.52, subdivision 2; and 424A.02, subdivision 11; Minnesota Statutes 1999 Supplement, sections 356.24, subdivision 1a; and 356.61."
We request adoption of this report and repassage of the bill.
Senate Conferees: Lawrence J. Pogemiller, Don Betzold and Roy W. Terwilliger.
House Conferees: Harry Mares, Rich Stanek and Mary Murphy.
Mares moved that the report of the Conference Committee on S. F. No. 2796 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
Hausman was excused for the remainder of today's session.
S. F. No. 2796, A bill for an act relating to retirement; pension plan actuarial reporting; various public retirement plans; volunteer firefighter relief associations; Minneapolis firefighters relief association; modifying actuarial cost allocation by the legislative commission on pensions and retirement; changing the actuarial value of assets, actuarial assumptions and funding surplus recognition method; revising re-employed annuitant earnings limitations; adding certain prior correctional positions to correctional plan coverage; clarifying various former police and fire consolidation account merger provisions; authorizing certain optional annuity form elections by former consolidation account members; revising local correctional retirement plan membership eligibility; increasing local correctional retirement plan member and employer contribution rates; authorizing the purchase of nonprofit community-based corporation teaching service; expanding investment options for employer matching contribution tax sheltered annuities; modifying various volunteer firefighter relief association benefit and administration provisions; modifying judicial pension provision; modifying the marriage duration requirement for certain Minneapolis firefighter relief association survivor benefits; creating additional Minneapolis police and firefighter relief association post retirement adjustment mechanisms; resolving various individual and small group pension problems; amending Minnesota Statutes 1998, sections 16A.055, subdivision 5; 69.773, subdivision 1; 122A.46, subdivision 1, and by adding a subdivision; 136F.45, subdivision 1a; 352.115, subdivision 10; 352.15, subdivision 1a; 352.91, subdivisions 3c, 3d, and by adding a subdivision; 352B.01, subdivision 3, and by adding a subdivision; 352D.02, subdivision 1; 352D.04, subdivision 2; 352D.05, subdivision 3; 352D.06; 352D.09, subdivision 5a; 353.01, subdivisions 2, 6, 11a, 28, 32, and by adding a subdivision; 353.15, subdivision 2; 353.27, subdivisions 4 and 12; 353.33, subdivisions 2 and 6; 353.34, subdivision 1; 353.37, by adding a subdivision; 353.64, subdivisions 2, 3, 4, and by adding a subdivision; 353.656, subdivisions 1 and 3; 353.71, subdivision 2; 353B.11, subdivision 3; 354.05, subdivisions 2 and 35; 354.091; 354.092, subdivision 2; 354.093; 354.094, subdivision 1; 354.10, subdivision 2; 354.35; 354.44, subdivision 5; 354.46, subdivision 2a; 354.47, subdivision 1; 354.48, subdivision 6; 354.49, subdivision 1; 354.52, subdivisions 3, 4, 4a, and 4b; 354.63, subdivision 2; 354A.31, subdivisions 3 and 3a; 354B.23, subdivision 5a; 354C.12, subdivision 1a; 354C.165; 356.215, subdivisions 1, 2, and 4d; 356.24, by adding a subdivision; 356.30, subdivision 1; 356A.01, subdivision 8; 356A.02; 356A.06, subdivision 4, and by adding a subdivision; 423B.01; 424A.001, subdivision 9; 424A.02, subdivisions 3, 7, 9, 13, and by adding a subdivision; 424A.04, subdivision 1; 424A.05, subdivision 3; 490.121, subdivision 4, and by adding a subdivision; 490.123, subdivisions 1a and 1b; and 490.124, subdivision 1; Minnesota Statutes 1999 Supplement, sections 3.85, subdivision 12; 69.021, subdivision 7; 136F.48; 352.1155, subdivisions 1 and 4; 353.01, subdivisions 2b and 10; 353.64, subdivision 1; 353E.02; 353E.03; 353F.02, subdivision 5; 354.445; 354.536, subdivision 1; 354A.101, subdivision 1; 356.215, subdivision 4g; 356.24, subdivisions 1 and 1b; and 423A.02, subdivisions 1b, 4 and 5; Laws 1965, chapter 705, section 1, subdivision 4, as amended; proposing coding for new law in Minnesota Statutes, chapters 69; 352; 353; 354; 354A; 356; and 423B; proposing coding for new law as Minnesota Statutes, chapters 352G; and 424B; repealing Minnesota Statutes 1998, section 353.024; 354.52, subdivision 2; and 424A.02, subdivision 11; Minnesota Statutes 1999 Supplement, sections 356.24, subdivision 1a; and 356.61.
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.
Pursuant to rule 2.05, the Speaker excused Pawlenty and Ozment from voting on the repassage of S. F. No. 2796, as amended by Conference.
There were 114 yeas and 14 nays as follows:
Those who voted in the affirmative were:
Abeler | Dempsey | Hilty | Leppik | Otremba | Stang | |
Abrams | Dorman | Holsten | Lieder | Paymar | Storm | |
Anderson, I. | Dorn | Howes | Luther | Pelowski | Swapinski | |
Bakk | Entenza | Huntley | Mahoney | Peterson | Swenson | |
Biernat | Erhardt | Jaros | Mares | Pugh | Sykora | |
Bishop | Finseth | Jennings | Mariani | Rest | Tingelstad | |
Boudreau | Folliard | Johnson | Marko | Rhodes | Tomassoni | |
Bradley | Fuller | Juhnke | McCollum | Rifenberg | Trimble | |
Broecker | Gleason | Kahn | McElroy | Rostberg | Tuma | |
Carlson | Goodno | Kalis | McGuire | Rukavina | Tunheim | |
Carruthers | Gray | Kelliher | Milbert | Schumacher | Vandeveer | |
Cassell | Greenfield | Kielkucki | Molnau | Seagren | Wagenius | |
Chaudhary | Greiling | Knoblach | Mullery | Seifert, J. | Wejcman | |
Clark, J. | Gunther | Koskinen | Murphy | Seifert, M. | Wenzel | |
Clark, K. | Haake | Kubly | Ness | Skoe | Westerberg | |
Daggett | Haas | Kuisle | Nornes | Skoglund | Westfall | |
Davids | Hackbarth | Larsen, P. | Opatz | Smith | Westrom | |
Dawkins | Harder | Larson, D. | Osskopp | Solberg | Winter | |
Dehler | Hasskamp | Lenczewski | Osthoff | Stanek | Spk. Sviggum | |
Those who voted in the negative were:
Anderson, B. | Gerlach | Lindner | Paulsen | Wilkin | Workman | |
Buesgens | Holberg | Mulder | Reuter | |||
Erickson | Krinkie | Olson | Van Dellen | |||
The bill was repassed, as amended by Conference, and its title agreed to.
The following Conference Committee Reports were received:
CONFERENCE COMMITTEE REPORT ON H. F. NO. 3501
A bill for an act relating to labor; modifying a provision governing exchange of information between the departments of labor and industry and revenue; amending Minnesota Statutes 1998, section 270B.14, subdivision 8.
May 3, 2000
The Honorable Steve Sviggum
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 3501, 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. 3501 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 1998, section 13.01, is amended by adding a subdivision to read:
Subd. 4. [HEADNOTES.] The headnotes printed in boldface type before paragraphs in this chapter are mere catchwords to indicate the content of a paragraph and are not part of the statute.
Sec. 2. Minnesota Statutes 1998, section 13.01, is amended by adding a subdivision to read:
Subd. 5. [PROVISIONS CODED IN OTHER CHAPTERS.] (a) The sections referenced in this chapter that are codified outside this chapter classify government data as other than public, place restrictions on access to government data, or involve data sharing.
(b) Those sections are governed by the definitions and general provisions in sections 13.01 to 13.07 and the remedies and penalties provided in sections 13.08 and 13.09, except:
(1) for records of the judiciary, as provided in section 13.90; or
(2) as specifically provided otherwise by law.
Sec. 3. Minnesota Statutes 1998, section 13.02, is amended by adding a subdivision to read:
Subd. 7a. [GOVERNMENT ENTITY.] "Government entity" means a state agency, statewide system, or political subdivision.
Sec. 4. Minnesota Statutes 1999 Supplement, section 13.03, subdivision 3, is amended to read:
Subd. 3. [REQUEST FOR ACCESS TO DATA.] (a) Upon request to a responsible authority or designee, a person shall be permitted to inspect and copy public government data at reasonable times and places, and, upon request, shall be informed of the data's meaning. If a person requests access for the purpose of inspection, the responsible authority may not assess a charge or require the requesting person to pay a fee to inspect data.
(b) For purposes of this section, "inspection" includes, but is not limited to, the visual inspection of paper and similar types of government data. Inspection does not include printing copies by the government entity, unless printing a copy is the only method to provide for inspection of the data. In the case of data stored in electronic form and made available in electronic form on a remote access basis to the public by the government entity, inspection includes remote access to the data by the public and the ability to print copies of or download the data on the public's own computer equipment. Nothing in this section prohibits a government entity from charging a reasonable fee for remote access to data under a specific statutory grant of authority. A government entity may charge a fee for remote access to data where either the data or the access is enhanced at the request of the person seeking access.
(c) The responsible authority or designee shall provide copies of public data upon request. If a person requests copies or electronic transmittal of the data to the person, the responsible authority may require the requesting person to pay the actual costs of searching for and retrieving government data, including the cost of employee time, and for making, certifying, compiling, and electronically transmitting the copies of the data or the data, but may not charge for separating public from not public data. If the responsible authority or designee is not able to provide copies at the time a request is made, copies shall be supplied as soon as reasonably possible.
(d) When a request under this subdivision involves any person's receipt of copies of public government data that has commercial value and is a substantial and discrete portion of or an entire formula, pattern, compilation, program, device, method, technique, process, database, or system developed with a significant expenditure of public funds by the agency, the responsible authority may charge a reasonable fee for the information in addition to the costs of
making, certifying, and compiling the copies. Any fee charged must be clearly demonstrated by the agency to relate to the actual development costs of the information. The responsible authority, upon the request of any person, shall provide sufficient documentation to explain and justify the fee being charged.
(e) The responsible authority of a state agency, statewide system, or political subdivision that maintains public government data in a computer storage medium shall provide to any person making a request under this section a copy of any public data contained in that medium, in electronic form, if the government entity can reasonably make the copy or have a copy made. This does not require a government entity to provide the data in an electronic format or program that is different from the format or program in which the data are maintained by the government entity. The entity may require the requesting person to pay the actual cost of providing the copy.
(e) (f) If the responsible authority or designee determines that the requested data is classified so
as to deny the requesting person access, the responsible authority or designee shall inform the requesting person of
the determination either orally at the time of the request, or in writing as soon after that time as possible, and shall
cite the specific statutory section, temporary classification, or specific provision of federal law on which the
determination is based. Upon the request of any person denied access to data, the responsible authority or designee
shall certify in writing that the request has been denied and cite the specific statutory section, temporary
classification, or specific provision of federal law upon which the denial was based.
Sec. 5. Minnesota Statutes 1998, section 13.03, subdivision 5, is amended to read:
Subd. 5. [COPYRIGHT OR PATENT OF COMPUTER PROGRAM GOVERNMENT DATA.]
Nothing in this chapter or any other statute shall be construed to prevent A state agency, statewide system,
or political subdivision from acquiring may enforce a copyright or acquire a patent for a
computer software program or components of a program created by that government agency without statutory
authority. In the event that a government agency does acquire acquires a patent or
copyright to a computer software program or component of a program, the data shall be treated as trade secret
information pursuant to section 13.37.
Sec. 6. Minnesota Statutes 1998, section 13.05, is amended by adding a subdivision to read:
Subd. 12. [IDENTIFICATION OR JUSTIFICATION.] Unless specifically authorized by statute, government entities may not require persons to identify themselves, state a reason for, or justify a request to gain access to public government data. A person may be asked to provide certain identifying or clarifying information for the sole purpose of facilitating access to the data.
Sec. 7. Minnesota Statutes 1998, section 13.05, is amended by adding a subdivision to read:
Subd. 13. [DATA PRACTICES COMPLIANCE OFFICIAL.] By December 1, 2000, each responsible authority or other appropriate authority in every government entity shall appoint or designate an employee of the government entity to act as the entity's data practices compliance official. The data practices compliance official is the designated employee of the government entity to whom persons may direct questions or concerns regarding problems in obtaining access to data or other data practices problems. The responsible authority may be the data practices compliance official.
Sec. 8. Minnesota Statutes 1998, section 13.08, subdivision 4, is amended to read:
Subd. 4. [ACTION TO COMPEL COMPLIANCE.] (a) In addition to the remedies provided in subdivisions 1 to 3 or any other law, any aggrieved person seeking to enforce the person's rights under this chapter or obtain access to data may bring an action in district court to compel compliance with this chapter and may recover costs and disbursements, including reasonable attorney's fees, as determined by the court. If the court determines that an action brought under this subdivision is frivolous and without merit and a basis in fact, it may award reasonable costs and attorney fees to the responsible authority. If the court issues an order to compel compliance under this subdivision, the court may impose a civil penalty of up to $300 against the government entity. This penalty is payable to the state general fund and is in addition to damages under subdivision 1. The matter shall be heard as soon as possible. In
an action involving a request for government data under section 13.03 or 13.04, the court may inspect in camera the government data in dispute, but shall conduct its hearing in public and in a manner that protects the security of data classified as not public. If the court issues an order to compel compliance under this subdivision, the court shall forward a copy of the order to the commissioner of administration.
(b) In determining whether to assess a civil penalty under this subdivision, the court shall consider whether the government entity has substantially complied with general data practices under this chapter, including but not limited to, whether the government entity has:
(1) designated a responsible authority under section 13.02, subdivision 16;
(2) designated a data practices compliance official under section 13.05, subdivision 13;
(3) prepared the public document that names the responsible authority and describes the records and data on individuals that are maintained by the government entity under section 13.05, subdivision 1;
(4) developed public access procedures under section 13.03, subdivision 2; procedures to guarantee the rights of data subjects under section 13.05, subdivision 8; and procedures to ensure that data on individuals are accurate and complete and to safeguard the data's security under section 13.05, subdivision 5;
(5) sought an oral, written, or electronic opinion from the commissioner of administration related to the matter at issue and acted in conformity with that opinion or an opinion sought by another person; or
(6) provided ongoing training to government entity personnel who respond to requests under this chapter.
Sec. 9. [13.081] [ADMINISTRATIVE REMEDIES.]
Subdivision 1. [COMPLAINTS.] Any person who believes that a government entity is not in compliance with this chapter may file a complaint with the commissioner. The commissioner shall specify the form of the complaint. The commissioner shall conduct an investigation to determine whether the complaint is valid or whether another alternative dispute resolution process exists to address the issue presented. If the commissioner determines the complaint is not valid or another alternative dispute resolution process is a more appropriate forum for resolving the dispute, the commissioner shall dismiss the complaint and so inform the person who filed the complaint and the government entity that was the subject of the complaint. If the commissioner determines the complaint is valid, the commissioner may take any of the actions under subdivision 2 to resolve the complaint. The commissioner shall either dismiss the complaint or refer it for one of the actions under subdivision 2 within 20 days of receipt of the complaint. For good cause and upon written notice to the person bringing the complaint, the commissioner may extend this deadline for one additional 30-day period.
Subd. 2. [INFORMAL RESOLUTION OF COMPLAINT.] The commissioner may attempt to resolve a complaint informally or, with the consent of both parties, refer the matter to an alternative dispute resolution process and use the services of the office of dispute resolution or the office of administrative hearings to arbitrate or mediate the dispute.
Sec. 10. Minnesota Statutes 1999 Supplement, section 13.32, subdivision 7, is amended to read:
Subd. 7. [USES OF DATA.] School officials who receive data on juveniles, as authorized under sections 260B.171 and 260C.171, may use and share that data within the school district or educational entity as necessary to protect persons and property or to address the educational and other needs of students. A school district, its agents, and employees who use and share this data in good faith are immune from civil or criminal liability that might otherwise result from their actions.
Sec. 11. Minnesota Statutes 1998, section 13.41, subdivision 2, is amended to read:
Subd. 2. [PRIVATE DATA; DESIGNATED ADDRESSES AND TELEPHONE NUMBERS.] (a) The following data collected, created or maintained by any licensing agency are classified as private, pursuant to section 13.02, subdivision 12: data, other than their names and designated addresses, submitted by applicants for licenses; the identity of complainants who have made reports concerning licensees or applicants which appear in inactive complaint data unless the complainant consents to the disclosure; the nature or content of unsubstantiated complaints when the information is not maintained in anticipation of legal action; the identity of patients whose medical records are received by any health licensing agency for purposes of review or in anticipation of a contested matter; inactive investigative data relating to violations of statutes or rules; and the record of any disciplinary proceeding except as limited by subdivision 4.
(b) An applicant for a license shall designate on the application a residence or business address and telephone
number at which the applicant can be contacted in connection with the license application. A licensee who is
subject to a health-related licensing board, as defined in section 214.01, subdivision 2, shall designate a
residence or business address and telephone number at which the licensee can be contacted in connection with the
license. By designating an address under this paragraph other than a residence address, the applicant or licensee
consents to accept personal service of process by service on the licensing agency for legal or administrative
proceedings. The licensing agency shall mail a copy of the documents to the applicant or licensee at the last known
residence address.
Sec. 12. [13.623] [ST. PAUL HOUSING AND REDEVELOPMENT AUTHORITY DATA.]
Subdivision 1. [PRIVATE AND NONPUBLIC DATA.] The following data that are submitted to the St. Paul housing and redevelopment authority by individuals and business entities that are requesting financial assistance are private data on individuals or nonpublic data: financial statements; credit reports; business plans; income and expense projections; customer lists; balance sheets; income tax returns; and design, market, and feasibility studies not paid for with public funds.
Subd. 2. [PUBLIC DATA.] Data submitted to the authority under subdivision 1 become public data if the authority provides financial assistance to the individual or business entity, except that the following data remain private or nonpublic: business plans; income and expense projections not related to the financial assistance provided; customer lists; income tax returns; and design, market, and feasibility studies not paid for with public funds.
Sec. 13. [13.624] [ST. PAUL ECONOMIC ASSISTANCE DATA.]
Subdivision 1. [PRIVATE AND NONPUBLIC DATA.] The following data that are submitted to the city of St. Paul by individuals and business entities that are requesting financial assistance are private data on individuals or nonpublic data: financial statements; credit reports; business plans; income and expense projections; customer lists; balance sheets; income tax returns; and design, market, and feasibility studies not paid for with public funds.
Subd. 2. [PUBLIC DATA.] Data submitted to the city under subdivision 1 become public data if the city provides financial assistance to the individual or business entity, except that the following data remain private or nonpublic: business plans; income and expense projections not related to the financial assistance provided; customer lists; income tax returns; and design, market, and feasibility studies not paid for with public funds.
Sec. 14. Minnesota Statutes 1998, section 13.84, subdivision 5, is amended to read:
Subd. 5. [DISCLOSURE.] Private or confidential court services data shall not be disclosed except:
(a) Pursuant to section 13.05;
(b) Pursuant to a statute specifically authorizing disclosure of court services data;
(c) With the written permission of the source of confidential data;
(d) To the court services department, parole or probation authority or state or local correctional agency or facility having statutorily granted supervision over the individual subject of the data;
(e) Pursuant to subdivision 5a; or
(f) Pursuant to a valid court order.
Sec. 15. Minnesota Statutes 1998, section 13.84, subdivision 6, is amended to read:
Subd. 6. [PUBLIC DATA.] The following court services data on adult individuals is public:
(a) name, age, date of birth, sex, occupation and the fact that an individual is a parolee, probationer or participant in a diversion program, and if so, at what location;
(b) the offense for which the individual was placed under supervision;
(c) the dates supervision began and ended and the duration of supervision;
(d) court services data which was public in a court or other agency which originated the data;
(e) arrest and detention orders, orders for parole or probation revocation and the reasons for revocation;
(f) the conditions of parole, probation or participation and the extent to which those conditions have been or are being met;
(g) identities of agencies, units within agencies and individuals providing supervision; and
(h) the legal basis for any change in supervision and the date, time and locations associated with the change.
Sec. 16. Minnesota Statutes 1999 Supplement, section 13.99, subdivision 19, is amended to read:
Subd. 19. [HMO EXAMINATIONS.] Data obtained by the commissioner of health in the course of an
examination of the affairs of a health maintenance organization are classified under section 62D.14,
subdivisions 1 and 4 4a.
Sec. 17. Minnesota Statutes 1999 Supplement, section 13.99, is amended by adding a subdivision to read:
Subd. 27g. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING PROGRAM SERVICES.] Data on individuals receiving services under certain programs administered by the department of children, families, and learning are classified under sections 119A.376, subdivision 4; 119A.44, subdivision 7; and 119A.50, subdivision 2.
Sec. 18. Minnesota Statutes 1998, section 62D.14, is amended by adding a subdivision to read:
Subd. 4a. [CLASSIFICATION OF DATA.] Any data or information obtained by the commissioner under this section or section 62D.145 shall be classified as private data on individuals as defined in chapter 13. Such data shall be protected and may be released consistent with the provisions of section 60A.03, subdivision 9.
Sec. 19. [62D.145] [DISCLOSURE OF INFORMATION HELD BY HEALTH MAINTENANCE ORGANIZATIONS.]
Subdivision 1. [PERSONAL AND PRIVILEGED INFORMATION.] The ability of a health maintenance organization to disclose personal information, as defined in section 72A.491, subdivision 17, and privileged information, as defined in section 72A.491, subdivision 19, is governed by sections 72A.497, 72A.499, and 72A.502.
Subd. 2. [HEALTH DATA OR INFORMATION.] (a) A health maintenance organization is prohibited from disclosing to any person any individually identifiable data or information held by the health maintenance organization pertaining to the diagnosis, treatment, or health of any enrollee, or any application obtained from any person, except:
(1) to the extent necessary to carry out the purposes of this chapter, the commissioner and a designee shall have access to the above data or information but the data removed from the health maintenance organization or participating entity shall not identify any particular patient or client by name or contain any other unique personal identifier;
(2) upon the express consent of the enrollee or applicant;
(3) pursuant to statute or court order for the production of evidence or the discovery thereof;
(4) in the event of claim or litigation between the person and the provider or health maintenance organization wherein such data or information is pertinent;
(5) to meet the requirements of contracts for prepaid medical services with the commissioner of human services authorized under chapter 256B, 256D, or 256L;
(6) to meet the requirements of contracts for benefit plans with the commissioner of employee relations under chapter 43A; or
(7) as otherwise authorized pursuant to statute.
No provision in a contract for a benefit plan under chapter 43A shall authorize dissemination of individually identifiable health records, unless the dissemination of the health records is required to carry out the requirements of the contract and employees whose health records will be disseminated are fully informed of the dissemination by the department of employee relations at the time the employees are enrolling for or changing insurance coverage.
(b) In any case involving a suspected violation of a law applicable to health maintenance organizations in which access to health data maintained by the health maintenance organization or participating entity is necessary, the commissioner and agents, while maintaining the privacy rights of individuals and families, shall be permitted to obtain data that identifies any particular patient or client by name. A health maintenance organization shall be entitled to claim any statutory privileges against such disclosure which the provider who furnished the information to the health maintenance organization is entitled to claim.
Sec. 20. Minnesota Statutes 1998, section 72A.491, subdivision 17, is amended to read:
Subd. 17. [PERSONAL INFORMATION.] "Personal information" means any individually identifiable information gathered in connection with an insurance transaction from which judgments can be made about an individual's character, habits, avocations, finances, occupation, general reputation, credit, health, or any other personal characteristics. The term includes the individual's name and address and health record information, but does not include privileged information. Personal information does not include health record information maintained by a health maintenance organization as defined under section 62D.02, subdivision 4, in its capacity as a health provider.
Sec. 21. Minnesota Statutes 1998, section 119A.376, is amended by adding a subdivision to read:
Subd. 4. [DATA CLASSIFICATION.] Data collected on individuals from which the identity of any individual receiving services may be determined are private data on individuals as defined in section 13.02.
Sec. 22. Minnesota Statutes 1998, section 119A.44, is amended by adding a subdivision to read:
Subd. 7. [DATA CLASSIFICATION.] Data collected on individuals from which the identity of any individual receiving services may be determined are private data on individuals as defined in section 13.02.
Sec. 23. Minnesota Statutes 1998, section 119A.50, is amended to read:
119A.50 [HEAD START PROGRAM.]
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The department of children, families, and learning is the state agency responsible for administering the Head Start program. The commissioner of children, families, and learning may make grants to public or private nonprofit agencies for the purpose of providing supplemental funds for the federal Head Start program.
Subd. 2. [DATA CLASSIFICATION.] Data collected on individuals from which the identity of any individual receiving services may be determined are private data on individuals as defined in section 13.02.
Sec. 24. Minnesota Statutes 1999 Supplement, section 256.978, subdivision 1, is amended to read:
Subdivision 1. [REQUEST FOR INFORMATION.] (a) The public authority responsible for child support in this
state or any other state, in order to locate a person or to obtain information necessary to establish paternity and child
support or to modify or enforce child support or distribute collections, may request information reasonably necessary
to the inquiry from the records of (1) all departments, boards, bureaus, or other agencies of this state
agencies or political subdivisions of this state, as defined in section 13.02, which shall, notwithstanding the
provisions of section 268.19 or any other law to the contrary, provide the information necessary for this purpose; and
(2) employers, utility companies, insurance companies, financial institutions, credit grantors, and labor associations
doing business in this state. They shall provide a response upon written or electronic request within 30 days of
service of the request made by the public authority. Information requested and used or transmitted by the
commissioner according to the authority conferred by this section may be made available to other agencies, statewide
systems, and political subdivisions of this state, and agencies of other states, interstate information networks, federal
agencies, and other entities as required by federal regulation or law for the administration of the child support
enforcement program.
(b) For purposes of this section, "state" includes the District of Columbia, Puerto Rico, the United States Virgin Islands, and any territory or insular possession subject to the jurisdiction of the United States.
Sec. 25. Minnesota Statutes 1999 Supplement, section 268.19, is amended to read:
268.19 [INFORMATION DATA PRIVACY.]
(a) Except as otherwise provided by this section, data gathered from any employer or individual pursuant to the administration of sections 268.03 to 268.23 are private data on individuals or nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except pursuant to a court order or section 13.05. These data may be disseminated to and used by the following agencies without the consent of the subject of the data:
(1) state and federal agencies specifically authorized access to the data by state or federal law;
(2) any agency of Minnesota or any other state; or any federal agency charged with the administration of an employment security law or the maintenance of a system of public employment offices;
(3) human rights agencies within Minnesota that have enforcement powers;
(4) the department of revenue must have access to department private data on individuals and nonpublic data not on individuals only to the extent necessary for enforcement of Minnesota tax laws;
(5) public and private agencies responsible for administering publicly financed assistance programs for the purpose of monitoring the eligibility of the program's recipients;
(6) the department of labor and industry on an interchangeable basis with the department subject to the following limitations and regardless of any law to the contrary:
(i) the department must have access to private data on individuals and nonpublic data not on individuals for uses consistent with the administration of its duties under sections 268.03 to 268.23; and
(ii) the department of labor and industry must have access to private data on individuals and nonpublic data not on individuals for uses consistent with the administration of its duties under Minnesota law;
(7) the department of trade and economic development may have access to private data on individual employers and nonpublic data not on individual employers for its internal use only; when received by the department of trade and economic development, the data remain private data on individuals or nonpublic data;
(8) local and state welfare agencies for monitoring the eligibility of the data subject for assistance programs, or for any employment or training program administered by those agencies, whether alone, in combination with another welfare agency, or in conjunction with the department or to monitor and evaluate the statewide Minnesota family investment program by providing data on recipients and former recipients of food stamps, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
(9) local, state, and federal law enforcement agencies for the sole purpose of ascertaining the last known address
and employment location of the data subject, provided the data subject is the subject of a criminal investigation;
and
(10) the federal Immigration and Naturalization Service shall have access to data on specific individuals and specific employers provided the specific individual or specific employer is the subject of an investigation by that agency; and
(11) the department of health may have access to private data on individuals and nonpublic data not on individuals solely for the purposes of epidemiologic investigations.
(b) Data on individuals and employers that are collected, maintained, or used by the department in an investigation pursuant to section 268.182 are confidential as to data on individuals and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except pursuant to statute or court order or to a party named in a criminal proceeding, administrative or judicial, for preparation of a defense.
(c) Tape recordings and transcripts of recordings of proceedings conducted in accordance with section 268.105 and exhibits received into evidence at those proceedings are private data on individuals and nonpublic data not on individuals and must be disclosed only pursuant to the administration of section 268.105, or pursuant to a court order.
(d) The department may disseminate an employer's name, address, industry code, occupations employed, and the number of employees by ranges of not less than 100 for the purpose of assisting individuals using the Minnesota workforce center system in obtaining employment.
(e) The general aptitude test battery and the nonverbal aptitude test battery as administered by the department are private data on individuals or nonpublic data.
(f) Data gathered by the department pursuant to the administration of sections 268.03 to 268.23 must not be made the subject or the basis for any suit in any civil proceedings, administrative or judicial, unless the action is initiated by the department.
Sec. 26. Minnesota Statutes 1998, section 270B.14, subdivision 8, is amended to read:
Subd. 8. [EXCHANGE BETWEEN DEPARTMENTS OF LABOR AND INDUSTRY AND REVENUE.] The departments of labor and industry and revenue may exchange information as follows:
(1) data used in determining whether a business is an employer or a contracting agent;
(2) taxpayer identity information relating to employers and employees for purposes of supporting tax administration and chapter 176; and
(3) data to the extent provided in and for the purpose set out in section 176.181, subdivision 8.
Sec. 27. Minnesota Statutes 1998, section 466.03, is amended by adding a subdivision to read:
Subd. 21. [GEOGRAPHIC INFORMATION SYSTEMS (GIS) DATA.] (a) Any claim against a municipality, based on alleged or actual inaccuracies in geographic information systems data, arising from the public's use of GIS data, if the municipality provides a disclaimer of the accuracy of the information at any point of initial contact with a geographic information system to which the public has general access.
(b) Geographic information systems data is government data subject to the presumption of section 13.01, subdivision 3. GIS data is data generated by a computer database or system that is designed to electronically capture, organize, store, update, manipulate, analyze, and display all forms of geographically referenced information that is compiled, from private or public sources, either alone or in cooperation with other public or private entities, for use by a municipality. GIS data is accurate for its intended use by a municipality and may be inaccurate for other uses.
Sec. 28. Minnesota Statutes 1998, section 609.115, subdivision 5, is amended to read:
Subd. 5. [REPORT TO COMMISSIONER OR LOCAL CORRECTIONAL AGENCY.] If the defendant is sentenced to the commissioner of corrections, a copy of any report made pursuant to this section and not made by the commissioner shall accompany the commitment. If the defendant is sentenced to a local correctional agency or facility, a copy of the report must be provided to that agency or facility.
Sec. 29. Laws 1999, chapter 216, article 2, section 27, subdivision 1, is amended to read:
Subdivision 1. [PILOT PROJECT AUTHORIZED; PURPOSE.] The fourth judicial district may establish a domestic fatality review team as a 30-month pilot project to review domestic violence deaths that have occurred in the district. The team may review cases in which prosecution has been completed or the prosecutorial authority has decided not to pursue the case. The purpose of the review team is to assess domestic violence deaths in order to develop recommendations for policies and protocols for community prevention and intervention initiatives to reduce and eliminate the incidence of domestic violence and resulting fatalities.
Sec. 30. Laws 1999, chapter 216, article 2, section 27, is amended by adding a subdivision to read:
Subd. 3a. [DUTIES; ACCESS TO DATA.] (a) The domestic fatality review team shall collect, review, and analyze death certificates and death data, including investigative reports, medical and counseling records, victim service records, employment records, child abuse reports, or other information concerning domestic violence deaths, survivor interviews and surveys, and other information deemed by the team as necessary and appropriate concerning the causes and manner of domestic violence deaths.
(b) The review team has access to the following not public data, as defined in Minnesota Statutes, section
13.02, subdivision 8a, relating to a case being reviewed by the team: inactive law enforcement investigative data
under Minnesota Statutes, section 13.82; autopsy records and coroner or medical examiner investigative data under
Minnesota Statutes, section 13.83; hospital, public health, or other medical records of the victim under Minnesota
Statutes, section 13.42; records under Minnesota Statutes, section 13.46, created by social service agencies that
provided services to the victim, the alleged perpetrator, or another victim who experienced or was threatened with domestic abuse by the perpetrator; and child maltreatment records under Minnesota Statutes, section 626.556, relating to the victim or a family or household member of the victim. Access to medical records under this paragraph also includes records governed by Minnesota Statutes, section 144.335.
(c) As part of any review, the domestic fatality review team may compel the production of other records by applying to the district court for a subpoena, which will be effective throughout the state according to the Rules of Civil Procedure.
Sec. 31. Laws 1999, chapter 216, article 2, section 27, is amended by adding a subdivision to read:
Subd. 3b. [CONFIDENTIALITY; DATA PRIVACY.] A person attending a domestic fatality review team meeting may not disclose what transpired at the meeting, except to carry out the purposes of the review team or as otherwise provided in this subdivision. The review team may disclose the names of the victims in the cases it reviewed. The proceedings and records of the review team are confidential data as defined in Minnesota Statutes, section 13.02, subdivision 3, or protected nonpublic data as defined in Minnesota Statutes, section 13.02, subdivision 13, regardless of their classification in the hands of the person who provided the data, and are not subject to discovery or introduction into evidence in a civil or criminal action against a professional, the state or a county agency, arising out of the matters the team is reviewing. Information, documents, and records otherwise available from other sources are not immune from discovery or use in a civil or criminal action solely because they were presented during proceedings of the review team. This section does not limit a person who presented information before the review team or who is a member of the panel from testifying about matters within the person's knowledge. However, in a civil or criminal proceeding, a person may not be questioned about the person's good faith presentation of information to the review team or opinions formed by the person as a result of the review team meetings.
Sec. 32. Laws 1999, chapter 216, article 2, section 27, is amended by adding a subdivision to read:
Subd. 3c. [IMMUNITY.] Members of the fourth judicial district domestic fatality advisory board, members of the domestic fatality review team, and members of each review panel, as well as their agents or employees, are immune from claims and are not subject to any suits, liability, damages, or any other recourse, civil or criminal, arising from any act, proceeding, decision, or determination undertaken or performed or recommendation made by the domestic fatality review team, provided they acted in good faith and without malice in carrying out their responsibilities. Good faith is presumed until proven otherwise and the complainant has the burden of proving malice or a lack of good faith. No organization, institution, or person furnishing information, data, testimony, reports, or records to the domestic fatality review team as part of an investigation is civilly or criminally liable or subject to any other recourse for providing the information.
Sec. 33. [REPEALER.]
Minnesota Statutes 1998, section 62D.14, subdivision 4, is repealed.
Sec. 34. [EFFECTIVE DATE.]
Section 9 is effective July 1, 2001. Section 27 is effective the day following final enactment and applies to causes of action arising on or after that date."
Delete the title and insert:
"A bill for an act relating to government data practices; classifying data; providing for access to and sharing of data; authorizing certain restrictions on access to data; clarifying definitions and application provisions; modifying penalty provisions; providing for electronic copies of data; classifying and regulating disclosure of information held by health maintenance organizations; prohibiting monitoring of persons requesting access to public data; requiring government entities to have a data practices compliance official; limiting tort liability for disclosure of geographic information systems data; providing for administrative and civil remedies; amending Minnesota Statutes 1998,
sections 13.01, by adding subdivisions; 13.02, by adding a subdivision; 13.03, subdivision 5; 13.05, by adding subdivisions; 13.08, subdivision 4; 13.41, subdivision 2; 13.84, subdivisions 5 and 6; 62D.14, by adding a subdivision; 72A.491, subdivision 17; 119A.376, by adding a subdivision; 119A.44, by adding a subdivision; 119A.50; 270B.14, subdivision 8; 466.03, by adding a subdivision; and 609.115, subdivision 5; Minnesota Statutes 1999 Supplement, sections 13.03, subdivision 3; 13.32, subdivision 7; 13.99, subdivision 19, and by adding a subdivision; 256.978, subdivision 1; and 268.19; Laws 1999, chapter 216, article 2, section 27, subdivision 1, and by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapters 13; and 62D; repealing Minnesota Statutes 1998, section 62D.14, subdivision 4."
We request adoption of this report and repassage of the bill.
House Conferees: Mary Liz Holberg, Steve Smith and Phil Carruthers.
Senate Conferees: Don Betzold, Jane B. Ranum and David L. Knutson.
Holberg moved that the report of the Conference Committee on H. F. No. 3501 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
H. F. No. 3501, A bill for an act relating to labor; modifying a provision governing exchange of information between the departments of labor and industry and revenue; amending Minnesota Statutes 1998, section 270B.14, subdivision 8.
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 129 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler | Dorman | Holsten | Luther | Pawlenty | Swenson | |
Abrams | Dorn | Howes | Mahoney | Paymar | Sykora | |
Anderson, B. | Entenza | Huntley | Mares | Pelowski | Tingelstad | |
Anderson, I. | Erhardt | Jaros | Mariani | Peterson | Tomassoni | |
Bakk | Erickson | Jennings | Marko | Pugh | Trimble | |
Biernat | Finseth | Johnson | McCollum | Rest | Tuma | |
Bishop | Folliard | Juhnke | McElroy | Reuter | Tunheim | |
Boudreau | Fuller | Kahn | McGuire | Rhodes | Van Dellen | |
Bradley | Gerlach | Kalis | Milbert | Rifenberg | Vandeveer | |
Broecker | Gleason | Kelliher | Molnau | Rostberg | Wagenius | |
Buesgens | Goodno | Kielkucki | Mulder | Rukavina | Wejcman | |
Carlson | Gray | Knoblach | Mullery | Schumacher | Wenzel | |
Carruthers | Greenfield | Koskinen | Murphy | Seagren | Westerberg | |
Cassell | Greiling | Krinkie | Ness | Seifert, J. | Westfall | |
Chaudhary | Gunther | Kubly | Nornes | Seifert, M. | Westrom | |
Clark, J. | Haake | Kuisle | Olson | Skoe | Wilkin | |
Clark, K. | Haas | Larsen, P. | Opatz | Skoglund | Winter | |
Daggett | Hackbarth | Larson, D. | Osskopp | Smith | Workman | |
Davids | Harder | Lenczewski | Osthoff | Solberg | Spk. Sviggum | |
Dawkins | Hasskamp | Leppik | Otremba | Stang | ||
Dehler | Hilty | Lieder | Ozment | Storm | ||
Dempsey | Holberg | Lindner | Paulsen | Swapinski | ||
The bill was repassed, as amended by Conference, and its title agreed to.
CONFERENCE COMMITTEE REPORT ON H. F. NO. 3534
A bill for an act relating to agriculture; changing certain requirements and enforcement procedures for agricultural contracts; amending Minnesota Statutes 1998, sections 17.90, by adding a subdivision; and 17.91; proposing coding for new law in Minnesota Statutes, chapter 17.
May 1, 2000
The Honorable Steve Sviggum
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 3534, report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 3534 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 1998, section 17.90, is amended by adding a subdivision to read:
Subd. 1a. [AGRICULTURAL CONTRACT.] "Agricultural contract" means any written contract between a contractor and a producer.
Sec. 2. Minnesota Statutes 1998, section 17.90, is amended by adding a subdivision to read:
Subd. 3a. [LEGIBLE TYPE.] "Legible type" means a typeface at least as large as ten-point modern type, one-point leaded.
Sec. 3. Minnesota Statutes 1998, section 17.90, subdivision 4, is amended to read:
Subd. 4. [PRODUCER.] "Producer" means a person who produces or causes to be produced an agricultural commodity in a quantity beyond the person's own family use and:
(1) is able to transfer title to another; or
(2) provides management, labor, machinery, facilities, or any other production input for the production of an agricultural commodity.
Sec. 4. Minnesota Statutes 1998, section 17.91, is amended to read:
17.91 [MEDIATION; ARBITRATION REQUIRED LANGUAGE.]
Subdivision 1. [MEDIATION; ARBITRATION.] A contract for an agricultural commodity between a contractor and a producer must contain language providing for resolution of contract disputes by either mediation or arbitration. If there is a contract dispute, either party may make a written request to the commissioner for mediation or arbitration services as specified in the contract, to facilitate resolution of the dispute.
Subd. 2. [WRITTEN DISCLOSURE OF RISKS.] An agricultural contract must be accompanied
by a clear written disclosure setting forth the nature of the material risks faced by the producer if the producer enters
into the contract. The statement must meet the plain language requirements of section 17.943. The statement may
be in the form of a written statement or checklist and may be developed in cooperation with producers or producer
organizations. A
contractor may submit a sample material risk disclosure statement to the commissioner for examination. If the commissioner approves of the statement or fails to respond within 30 days of receipt of the statement, the statement will be deemed to comply with this subdivision and with the plain language requirements of section 17.943.
Sec. 5. [17.941] [PRODUCER'S RIGHT TO REVIEW.]
A producer may cancel an agricultural contract by mailing a written cancellation notice to the contractor within three business days after the producer receives a copy of the signed contract, or before a later cancellation deadline if a later deadline is specified in the contract. The producer's right to cancel, the method by which the producer may cancel, and the deadline for canceling the contract shall be clearly disclosed in every agricultural contract.
Sec. 6. [17.942] [COVER SHEET REQUIREMENTS.]
Subdivision 1. [MANDATORY COVER PAGE.] An agricultural contract entered into or substantively amended after January 1, 2001, must contain as the first page, or first page of text if it is preceded by a title page or pages, a cover sheet as provided in this section.
Subd. 2. [REQUIREMENTS.] The cover sheet or sheets must comply with section 17.943, and must contain the following:
(1) a brief statement that the document is a legal contract between the contractor and the producer;
(2) the statement "READ YOUR CONTRACT CAREFULLY. This cover sheet provides only a brief summary of your contract. This is not the contract and only the terms of the actual contract are legally binding. The contract itself sets forth, in detail, the rights and obligations of both you and the contractor. IT IS THEREFORE IMPORTANT THAT YOU READ YOUR CONTRACT CAREFULLY.";
(3) the written disclosure of material risks required by section 17.91, subdivision 2;
(4) a statement detailing, in plain language, the producer's right to review the contract as described in section 17.941; and
(5) an index of the major provisions of the contract and the pages on which they are found, including:
(i) the names of all parties to the contract;
(ii) the definition sections of the contract;
(iii) the provisions governing cancellation, renewal, or amendment of the contract by either party;
(iv) the duties or obligations of each party; and
(v) any provisions subject to change in the contract.
Sec. 7. [17.943] [CONTRACT FORMAT.]
Subdivision 1. [READABILITY.] An agricultural contract must be in legible type, appropriately divided and captioned by its various sections, and written in clear and coherent language using words and grammar that are understandable by a person of average intelligence, education, and experience within the industry.
Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply to particular words, phrases, provisions, or forms of agreement specifically required, recommended, or endorsed by a state or federal statute, rule, or regulation.
Subd. 3. [CUSTOMARILY USED TERMS.] An agricultural contract may include technical terms to describe the services or property which are the subject of the contract, if the terms are customarily used by producers in the ordinary course of business in connection with the services or property being described.
Sec. 8. [17.944] [REVIEW BY COMMISSIONER.]
Subdivision 1. [AGRICULTURAL CONTRACTS.] For purposes of this section and section 17.943, "agricultural contract" includes, where applicable, the cover sheet as defined in section 17.942, and material risk disclosure statement required by section 17.91, subdivision 2.
Subd. 2. [PROCESS OF REVIEW.] A contractor may submit an agricultural contract to the commissioner for review as to whether it complies with section 17.943. After reviewing the contract, the commissioner shall:
(1) certify that the contract complies with section 17.943;
(2) decline to certify that the contract complies with section 17.943 and note objections;
(3) decline to review the contract because the contract's compliance with section 17.943 is subject to pending litigation; or
(4) decline to review the contract because the contract is not subject to section 17.943.
Subd. 3. [FACTORS IN DETERMINING READABILITY.] In determining whether a contract or cover sheet is readable within the meaning of section 17.943, the commissioner shall consider at least the following factors:
(1) the simplicity of the sentence structure;
(2) the extent to which commonly used and understood words are employed;
(3) the extent to which esoteric legal terms are avoided;
(4) the extent to which references to other sections or provisions of the contract are minimized;
(5) the Flesch scale analysis readability score as outlined in section 72C.09;
(6) the extent to which clear definitions are used in the text of the contract; and
(7) additional factors relevant to the contract being easy to read and understand.
Subd. 4. [PROCESS NOT REVIEWABLE.] Actions of the commissioner under subdivision 1 are not subject to chapter 14 and are not appealable.
Subd. 5. [LIMITED EFFECT OF CERTIFICATION.] A contract certified under subdivision 1 is deemed to comply with section 17.943. Certification of a contract under subdivision 1 does not constitute an approval of the contract's legality or legal effect.
If the commissioner certifies a contract or fails to respond within 30 days of receipt of the contract, the contractor will have complied with sections 17.91 and 17.943, and the remedies stated in subdivisions 7 and 8 are not available.
Subd. 6. [REVIEW NOT REQUIRED.] Failure to submit a contract to the commissioner for review under subdivision 1 does not show a lack of good faith or raise a presumption that the contract violates section 17.943.
Subd. 7. [ENFORCEMENT REMEDIES.] A violation of section 17.943 is a violation subject to section 8.31, subdivision 1. The remedies in section 8.31, subdivisions 3 and 3a, are limited by section 17.9441.
Subd. 8. [REFORMATION.] (a) In addition to the remedies provided in section 8.31, a court reviewing an agricultural contract may change the terms of the contract or limit a provision to avoid an unfair result if it finds that:
(1) a material provision of the contract violates section 17.943;
(2) the violation caused the producer to be substantially confused about any of the rights, obligations, or remedies of the contract; and
(3) the violation has caused or is likely to cause financial detriment to the producer.
(b) If the court reforms or limits a provision of a contract, the court shall also make orders necessary to avoid unjust enrichment. Bringing a claim for relief under this subdivision does not entitle a producer to withhold performance of an otherwise valid contractual obligation. No relief may be granted under this subdivision unless the claim is brought before the obligations of the contract have been fully performed.
Sec. 9. [17.9441] [LIMITS ON REMEDIES.]
Subdivision 1. [PENALTIES.] In a proceeding in which civil penalties are claimed from a party for a violation of section 17.943, it is a defense to the claim that the party made a good faith and reasonable effort to comply with section 17.943.
Subd. 2. [ATTORNEY'S FEES.] A party who has made a good faith and reasonable effort to comply with section 17.943 may not be assessed attorney's fees or costs of investigation in an action for violating section 17.943.
Subd. 3. [CLASS ACTION ATTORNEY'S FEES.] In a class action or series of class actions that arise from the use by a contractor of an agricultural contract found to violate section 17.943, the amount of attorney's fees and costs of investigation assessed against that contractor and in favor of the class or classes may not exceed $10,000.
Subd. 4. [LIMITS ON PRODUCER ACTIONS.] Violation of section 17.943 is not a defense to a claim arising from a producer's breach of an agricultural contract. A producer may recover actual damages caused by a violation of section 17.943 only if the violation caused the producer to not understand the rights, obligations, or remedies of the contract.
Subd. 5. [STATUTE OF LIMITATIONS.] A claim that an agricultural contract violates section 17.943 must be raised within six years of the date the contract is executed by the producer.
Sec. 10. [17.9442] [APPLICABILITY OF CONTRACT REQUIREMENTS.]
The requirements for the written disclosure of material risks under section 17.91, subdivision 2; the three-day review period under section 17.941; the cover sheet requirement under section 17.942; and the contract readability requirements under section 17.943, subdivision 1, do not apply to contracts which provide for:
(1) the sale and purchase of a fixed amount of a commodity for delivery at a set price;
(2) price-later grain contracts;
(3) contracts agreed to between a processor and an accredited bargaining organization under sections 17.691 to 17.703;
(4) future contracts which involve the sale or purchase of a standardized quantity of a commodity for future delivery on a regulated commodity exchange;
(5) agricultural marketing contracts between a capital stock cooperative and its members under section 308A.205; or
(6) occasional sales between persons who produce or cause to be produced food, feed, or fiber in a quantity beyond their own family use.
Sec. 11. [17.9443] [WAIVER OF CONTRACT PROVISIONS IS VOID.]
Any provision of an agricultural contract which waives or attempts to waive any provision of sections 17.90 to 17.97 is void.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective on January 1, 2001, and apply to agricultural contracts entered into or substantively amended after that date."
Delete the title and insert:
"A bill for an act relating to agriculture; changing certain requirements and enforcement procedures for agricultural contracts; amending Minnesota Statutes 1998, sections 17.90, subdivision 4, and by adding subdivisions; and 17.91; proposing coding for new law in Minnesota Statutes, chapter 17."
We request adoption of this report and repassage of the bill.
House Conferees: Elaine Harder, Stephen G. Wenzel and Tim Finseth.
Senate Conferees: Dennis R. Frederickson, Dallas C. Sams and Jim Vickerman.
Harder moved that the report of the Conference Committee on H. F. No. 3534 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
H. F. No. 3534, A bill for an act relating to agriculture; changing certain requirements and enforcement procedures for agricultural contracts; amending Minnesota Statutes 1998, sections 17.90, by adding a subdivision; and 17.91; proposing coding for new law in Minnesota Statutes, chapter 17.
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 130 yeas and 0 nays as follows:
Those who voted in the affirmative were:
The bill was repassed, as amended by Conference, and its title agreed to.
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:
H. F. No. 3046, A bill for an act relating to game and fish; requiring certain reports; modifying duties of citizen oversight committees; modifying certain licensing fees; appropriating money; amending Minnesota Statutes 1998, sections 97A.055, subdivisions 4 and 4a; 97A.475, subdivisions 2, 3, 6, 7, 8, 11, 12, 13, and 20; and 97A.485, subdivision 12.
Patrick E. Flahaven, Secretary of the Senate
Holsten moved that the House concur in the Senate amendments to H. F. No. 3046 and that the bill be repassed as amended by the Senate. The motion prevailed.
The Speaker called Abrams to the Chair.
H. F. No. 3046, A bill for an act relating to natural resources; requiring certain reports; modifying duties of citizen oversight committees; modifying certain license fees; providing for wolf management; modifying use of lighted fishing lures; modifying disposition of payments in lieu of sales tax for lottery tickets; appropriating money; amending Minnesota Statutes 1998, sections 3.737, subdivision 1; 97A.055, subdivisions 4 and 4a; 97A.331, by adding a subdivision; 97A.475, subdivisions 2, 3, 6, 7, 8, 11, 12, 13, and 20; 97A.485, subdivision 12; 97B.645; 97B.671, subdivision 3, and by adding a subdivision; 97C.335, as amended; and 297A.44, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 97B.
The bill was read for the third time, as amended by the Senate, and placed upon its repassage.
The question was taken on the repassage of the bill and the roll was called. There were 87 yeas and 44 nays as follows:
Those who voted in the affirmative were:
Abeler | Finseth | Juhnke | Mullery | Rhodes | Tingelstad | |
Bakk | Fuller | Kalis | Murphy | Rostberg | Tomassoni | |
Bishop | Goodno | Kelliher | Ness | Rukavina | Trimble | |
Boudreau | Gunther | Koskinen | Nornes | Schumacher | Tuma | |
Bradley | Haas | Kubly | Olson | Seagren | Tunheim | |
Broecker | Hackbarth | Kuisle | Opatz | Seifert, J. | Wenzel | |
Cassell | Harder | Larsen, P. | Osskopp | Seifert, M. | Westerberg | |
Daggett | Hasskamp | Leighton | Osthoff | Skoe | Westfall | |
Davids | Hilty | Lenczewski | Otremba | Solberg | Westrom | |
Dempsey | Holsten | Leppik | Ozment | Stanek | Winter | |
Dorman | Howes | Lieder | Pawlenty | Stang | Workman | |
Dorn | Huntley | Luther | Pelowski | Storm | Spk. Sviggum | |
Entenza | Jaros | Mahoney | Peterson | Swapinski | ||
Erhardt | Jennings | Mares | Pugh | Swenson | ||
Erickson | Johnson | McElroy | Rest | Sykora | ||
Those who voted in the negative were:
Abrams | Clark, J. | Greenfield | Larson, D. | Mulder | Vandeveer | |
Anderson, B. | Clark, K. | Greiling | Lindner | Paulsen | Wagenius | |
Anderson, I. | Dawkins | Haake | Mariani | Paymar | Wejcman | |
Biernat | Dehler | Holberg | Marko | Reuter | Wilkin | |
Buesgens | Folliard | Kahn | McCollum | Rifenberg | ||
Carlson | Gerlach | Kielkucki | McGuire | Skoglund | ||
Carruthers | Gleason | Knoblach | Milbert | Smith | ||
Chaudhary | Gray | Krinkie | Molnau | Van Dellen | ||
The bill was repassed, as amended by the Senate, and its title agreed to.
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:
H. F. No. 3557, A bill for an act relating to appropriations; modifying certain state government provisions; amending Minnesota Statutes 1999 Supplement, section 16A.129, subdivision 3; Laws 1999, chapter 250, article 1, sections 11 and 14, subdivision 3; repealing Laws 1999, chapter 250, article 1, section 15, subdivision 4.
Patrick E. Flahaven, Secretary of the Senate
Krinkie moved that the House concur in the Senate amendments to H. F. No. 3557 and that the bill be repassed as amended by the Senate. The motion prevailed.
H. F. No. 3557, A bill for an act relating to legislative enactments; correcting miscellaneous oversights, inconsistencies, unintended results, and technical errors in state government, human services, and prekindergarten-grade 12 education code appropriations acts; appropriating money; amending Minnesota Statutes 1998, sections 125A.21, subdivision 1; and 256B.501, by adding a subdivision; Minnesota Statutes 1999 Supplement, sections 16A.129, subdivision 3; 124D.65, subdivision 4; 126C.052; 126C.10, subdivisions 2 and 23; 126C.12, subdivision 1; and 256B.77, subdivision 10; Laws 1999, chapters 241, articles 1, section 70; and 4, section 29; 245, articles 1, section 3, subdivision 2; and 4, section 121; 250, article 1, sections 11 and 14, subdivision 3; repealing Laws 1999, chapter 241, article 10, section 5; and 250, article 1, section 15, subdivision 4.
The bill was read for the third time, as amended by the Senate, and placed upon its repassage.
The question was taken on the repassage of the bill and the roll was called. There were 127 yeas and 2 nays as follows:
Those who voted in the affirmative were:
Abeler | Dorman | Holsten | Lindner | Pelowski | Tingelstad | |
Abrams | Dorn | Howes | Luther | Peterson | Tomassoni | |
Anderson, B. | Entenza | Huntley | Mares | Pugh | Trimble | |
Anderson, I. | Erhardt | Jaros | Mariani | Reuter | Tuma | |
Bakk | Erickson | Jennings | Marko | Rhodes | Tunheim | |
Biernat | Finseth | Johnson | McCollum | Rifenberg | Van Dellen | |
Bishop | Folliard | Juhnke | McElroy | Rostberg | Vandeveer | |
Boudreau | Fuller | Kahn | McGuire | Rukavina | Wagenius | |
Bradley | Gerlach | Kalis | Milbert | Schumacher | Wejcman | |
Broecker | Gleason | Kelliher | Molnau | Seagren | Wenzel | |
Buesgens | Goodno | Kielkucki | Mulder | Seifert, J. | Westerberg | |
Carlson | Gray | Knoblach | Mullery | Seifert, M. | Westfall | |
Carruthers | Greenfield | Koskinen | Murphy | Skoe | Westrom | |
Cassell | Greiling | Krinkie | Ness | Skoglund | Wilkin | |
Chaudhary | Gunther | Kubly | Nornes | Smith | Winter | |
Clark, J. | Haake | Kuisle | Olson | Solberg | Workman | |
Clark, K. | Haas | Larsen, P. | Osskopp | Stanek | Spk. Sviggum | |
Daggett | Hackbarth | Larson, D. | Otremba | Stang | ||
Davids | Harder | Leighton | Ozment | Storm | ||
Dawkins | Hasskamp | Lenczewski | Paulsen | Swapinski | ||
Dehler | Hilty | Leppik | Pawlenty | Swenson | ||
Dempsey | Holberg | Lieder | Paymar | Sykora | ||
Those who voted in the negative were:
OpatzRest | ||
The bill was repassed, as amended by the Senate, and its title agreed to.
Solberg was excused between the hours of 2:55 p.m. and 5:30 p.m.
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
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
CONFERENCE COMMITTEE REPORT ON S. F. NO. 3028
A bill for an act relating to vulnerable adults; specifying rights for reconsideration and review of determinations regarding maltreatment; amending Minnesota Statutes 1998, section 626.557, subdivisions 9c, 9d, and 12b; Minnesota Statutes 1999 Supplement, section 13.99, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 256.
April 26, 2000
The Honorable Allan H. Spear
President of the Senate
The Honorable Steve Sviggum
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 3028, 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. 3028 be further amended as follows:
Page 10, after line 7, insert:
"Sec. 6. Laws 1995, chapter 207, article 8, section 37, is amended to read:
Sec. 37. [256.0121] [SOUTHERN CITIES COMMUNITY HEALTH CLINIC.]
Subdivision 1. [SERVICE PROVISION.] The commissioner of human services shall offer medically necessary psychiatric and dental services to developmentally disabled clients in the Faribault service area through the Southern Cities Community Health Clinic. For purposes of this requirement, the Faribault service area is expanded to also include geographic areas of the state within 100 miles of Faribault.
Subd. 2. [CONSULTATION REQUIRED.] The commissioner of human services shall consult with
the Faribault community task force providers of psychiatric and dental services to developmentally
disabled clients, family members of developmentally disabled clients, the chairs of the house and senate committees
with jurisdiction over health and human services fiscal issues, and the exclusive representatives before
making any decisions about when considering policy changes related to:
(1) the future of the Southern Cities Community Health Clinic;
(2) the services currently provided by that clinic to developmentally disabled clients in the Faribault regional center catchment area; and
(3) changes in the model for providing those services.
Subd. 3. [GUARANTEE OF SERVICE AVAILABILITY; LEGISLATIVE NOTICE.] (a) The department of human services shall guarantee the provision of medically necessary psychiatric and dental services to developmentally disabled clients in the Faribault service area through the Southern Cities Community Health Clinic until or unless other appropriate arrangements have been made to provide those clients with those services and the requirements of paragraph (b) are met.
(b) The commissioner shall notify the chairs of the house and senate committees with jurisdiction over health and human services fiscal issues of plans to use other arrangements to provide medically necessary psychiatric and dental services to developmentally disabled clients in the Faribault service area. The commissioner must not implement these arrangements unless a regular legislative session has convened and adjourned since the date notice was given under this paragraph."
Amend the title as follows:
Page 1, line 2, delete "vulnerable adults" and insert "human services"
Page 1, line 4, before the semicolon, insert "of vulnerable adults; modifying provisions governing the Southern Cities Community Health Clinic"
Page 1, line 7, after the semicolon, insert "Laws 1995, chapter 207, article 8, section 37;"
We request adoption of this report and repassage of the bill.
Senate Conferees: Allan H. Spear, Thomas M. Neuville and Don Samuelson.
House Conferees: Lee Greenfield, Lynda Boudreau and Kevin Goodno.
Greenfield moved that the report of the Conference Committee on S. F. No. 3028 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
S. F. No. 3028, A bill for an act relating to vulnerable adults; specifying rights for reconsideration and review of determinations regarding maltreatment; amending Minnesota Statutes 1998, section 626.557, subdivisions 9c, 9d, and 12b; Minnesota Statutes 1999 Supplement, section 13.99, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 256.
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 129 yeas and 0 nays as follows:
Those who voted in the affirmative were:
The bill was repassed, as amended by Conference, and its title agreed to.
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
S. F. No. 3036.
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
CONFERENCE COMMITTEE REPORT ON S. F. NO. 3036
A bill for an act relating to natural resources; providing for seizure and administrative forfeiture of certain firearms and abandoned property; modifying authority to issue trespass citations; modifying provisions for forfeited vehicles; modifying definition of peace officer; providing civil penalties; appropriating money; amending Minnesota Statutes 1998, sections 97B.002, subdivision 1; and 609.5312, subdivision 4; Minnesota Statutes 1999 Supplement, sections 169.1217, subdivision 9; and 169.123, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 97A.
May 2, 2000
The Honorable Allan H. Spear
President of the Senate
The Honorable Steve Sviggum
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 3036, 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. 3036 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. [97A.223] [SEIZURE AND ADMINISTRATIVE FORFEITURE OF CERTAIN FIREARMS AND ABANDONED PROPERTY.]
Subdivision 1. [PROPERTY SUBJECT TO SEIZURE AND FORFEITURE.] (a) An enforcement officer must seize:
(1) firearms possessed in violation of state or federal law or court order; and
(2) property described in section 97A.221, subdivision 1, where no owner can be determined.
(b) Property seized under this section is subject to administrative forfeiture.
Subd. 2. [NOTICE OF SEIZURE AND INTENT TO FORFEIT.] When property is seized under subdivision 1, the enforcement officer shall serve any known owner and person possessing the property with a notice of the seizure and intent to forfeit the property. The notice must be in writing, describing the property seized, the date of seizure, and notice of the right to appeal the seizure and forfeiture as described in subdivision 3.
Subd. 3. [APPEAL; FINAL ORDER.] Seizure and administrative forfeiture of property under this section may be appealed under the procedures in section 116.072, subdivision 6, if the owner or other person from whom the property was seized requests a hearing by notifying the commissioner in writing within 45 days after seizure of the property. For purposes of this section, the terms "commissioner" and "agency" as used in section 116.072 mean the commissioner of natural resources. If a hearing is not requested within 45 days of seizure, the forfeiture becomes a final order and not subject to further review.
Subd. 4. [OTHER REMEDIES.] The authority to forfeit firearms and other property under this section is in addition to other remedies available under state and federal law.
Subd. 5. [DISPOSAL OF FORFEITED PROPERTY.] Forfeited property under this section may be disposed of as contraband according to section 97A.221, subdivision 4.
Sec. 2. Minnesota Statutes 1998, section 97B.002, subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY TO ISSUE.] Conservation officers, sheriffs, and deputies may issue citations to a person who trespasses in violation of section 84.90 or 97B.001 or removes a sign posted to prevent trespass without permission of the owner of the property.
Sec. 3. Minnesota Statutes 1999 Supplement, section 169.1217, subdivision 7a, is amended to read:
Subd. 7a. [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) A motor vehicle used to commit a designated offense or used in conduct resulting in a designated license revocation is subject to administrative forfeiture under this subdivision.
(b) When a motor vehicle is seized under subdivision 2, the appropriate agency shall serve the driver or operator of the vehicle with a notice of the seizure and intent to forfeit the vehicle. Additionally, when a motor vehicle is seized under subdivision 2, or within a reasonable time after that, all persons known to have an ownership, possessory, or security interest in the vehicle must be notified of the seizure and the intent to forfeit the vehicle. The notification to a person known to have a security interest in the vehicle is required only if the vehicle is registered under chapter 168 and the interest is listed on the vehicle's title. Notice mailed by certified mail to the address shown in department of public safety records is sufficient notice to the registered owner of the vehicle. Otherwise, notice may be given in the manner provided by law for service of a summons in a civil action.
(c) The notice must be in writing and contain:
(1) a description of the vehicle seized;
(2) the date of seizure; and
(3) notice of the right to obtain judicial review of the forfeiture and of the procedure for obtaining that judicial review, printed in English, Hmong, and Spanish. Substantially the following language must appear conspicuously: "IF YOU DO NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA STATUTES, SECTION 169.1217, SUBDIVISION 7a, YOU LOSE THE RIGHT TO A JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY RIGHT YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY.
YOU MAY NOT HAVE TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE UNABLE TO AFFORD THE FEE. IF THE PROPERTY IS WORTH $7,500 OR LESS, YOU MAY FILE YOUR CLAIM IN CONCILIATION COURT. YOU DO NOT HAVE TO PAY THE CONCILIATION COURT FILING FEE IF THE PROPERTY IS WORTH LESS THAN $500."
(d) Within 30 days following service of a notice of seizure and forfeiture under this subdivision, a claimant may
file a demand for a judicial determination of the forfeiture. The demand must be in the form of a civil complaint
and must be filed with the court administrator in the county in which the seizure occurred, together with proof of
service of a copy of the complaint on the prosecuting authority having jurisdiction over the forfeiture, and the
standard filing fee for civil actions unless the petitioner has the right to sue in forma pauperis under section 563.01.
If the value of the seized property is $7,500 or less, the claimant may file an action in conciliation court for recovery
of the seized vehicle. If the value of the seized property is less than $500, the claimant does not have to pay the
conciliation court filing fee. No responsive pleading is required of the prosecuting authority and no court fees may
be charged for the prosecuting authority's appearance in the matter. Except as provided in this section, judicial
reviews and hearings are governed by section 169.123, subdivisions 5c and 6, and shall, at the
option of the prosecuting authority, may take place at the same time as any judicial review of the person's license
revocation under section 169.123. If the judicial review and hearing under this section do not take place at the
same time as the judicial review of the person's license revocation under section 169.123, the review and hearing
must take place at the earliest practicable date. The proceedings may be combined with any hearing on a petition
filed under section 169.123, subdivision 5c, and are governed by the rules of civil procedure.
(e) The complaint must be captioned in the name of the claimant as plaintiff and the seized vehicle as defendant, and must state with specificity the grounds on which the claimant alleges the vehicle was improperly seized and the plaintiff's interest in the vehicle seized. Notwithstanding any law to the contrary, an action for the return of a vehicle seized under this section may not be maintained by or on behalf of any person who has been served with a notice of seizure and forfeiture unless the person has complied with this subdivision.
(f) If the claimant makes a timely demand for a judicial determination under this subdivision, the appropriate agency must conduct the forfeiture under subdivision 8.
(g) If a demand for judicial determination of an administrative forfeiture is filed under this subdivision and the court orders the return of the seized vehicle, the court shall order that filing fees be reimbursed to the person who filed the demand. In addition, the court may order sanctions under section 549.211.
Sec. 4. Minnesota Statutes 1998, section 169.1217, is amended by adding a subdivision to read:
Subd. 10. [SALE OF FORFEITED VEHICLE BY SECURED PARTY.] (a) A financial institution with a valid security interest in or a valid lease covering a forfeited vehicle may choose to dispose of the vehicle under this subdivision, in lieu of the appropriate agency disposing of the vehicle under subdivision 9. A financial institution wishing to dispose of a vehicle under this subdivision shall notify the appropriate agency of its intent, in writing, within 30 days after receiving notice of the seizure and forfeiture. The appropriate agency shall release the vehicle to the financial institution or its agent after the financial institution presents proof of its valid security agreement or of its lease agreement and the financial institution agrees not to sell the vehicle to a member of the violator's household, unless the violator is not convicted of the offense on which the forfeiture is based. The financial institution shall dispose of the vehicle in a commercially reasonable manner as defined in section 336.9-504.
(b) After disposing of the forfeited vehicle, the financial institution shall reimburse the appropriate agency for its seizure, storage, and forfeiture costs. The financial institution may then apply the proceeds of the sale to its storage costs, to its sale expenses, and to satisfy the lien or the lease on the vehicle. If any proceeds remain, the financial institution shall forward the proceeds to the state treasury, which shall credit the appropriate fund as specified in subdivision 9.
Sec. 5. Minnesota Statutes 1998, section 609.5312, subdivision 4, is amended to read:
Subd. 4. [VEHICLE FORFEITURE FOR FLEEING A PEACE OFFICER.] (a) A motor vehicle is subject to forfeiture under this subdivision if it was used to commit a violation of section 609.487 and endanger life or property. A motor vehicle is subject to forfeiture under this subdivision only if the offense is established by proof of a criminal conviction for the offense. Except as otherwise provided in this subdivision, a forfeiture under this subdivision is governed by sections 609.531, 609.5312, 609.5313, and 609.5315, subdivision 6.
(b) When a motor vehicle subject to forfeiture under this subdivision is seized in advance of a judicial forfeiture order, a hearing before a judge or referee must be held within 96 hours of the seizure. Notice of the hearing must be given to the registered owner within 48 hours of the seizure. The prosecuting authority shall certify to the court, at or in advance of the hearing, that it has filed or intends to file charges against the alleged violator for violating section 609.487. After conducting the hearing, the court shall order that the motor vehicle be returned to the owner if:
(1) the prosecutor has failed to make the certification required by this paragraph;
(2) the owner of the motor vehicle has demonstrated to the court's satisfaction that the owner has a defense to the forfeiture, including but not limited to the defenses contained in subdivision 2; or
(3) the court determines that seizure of the vehicle creates or would create an undue hardship for members of the owner's family.
(c) If the defendant is acquitted or the charges against the defendant are dismissed, neither the owner nor the defendant is responsible for paying any costs associated with the seizure or storage of the vehicle.
(d) A vehicle leased or rented under section 168.27, subdivision 4, for a period of 180 days or less is not subject to forfeiture under this subdivision.
(e) A motor vehicle that is an off-road recreational vehicle as defined in section 169.01, subdivision 86, or a motorboat as defined in section 169.01, subdivision 87, is not subject to paragraph (b).
Sec. 6. [ASSESSING GROSS VIOLATIONS; REPORT.]
The commissioner of natural resources must review and assess gross violations of taking game and fish resources. A report on increased penalties for gross violations must be completed by the commissioner by February 1, 2001, and delivered to the house and senate committees on natural resources policy and finance.
Sec. 7. [EFFECTIVE DATE.]
Sections 1 to 6 are effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to penalties; providing for seizure and administrative forfeiture of certain firearms and abandoned property; modifying authority to issue trespass citations; modifying provisions for forfeited vehicles; requiring a report of gross violations of game and fish law; providing civil penalties; amending Minnesota Statutes 1998, sections 97B.002, subdivision 1; 169.1217, by adding a subdivision; and 609.5312, subdivision 4; Minnesota Statutes 1999 Supplement, section 169.1217, subdivision 7a; proposing coding for new law in Minnesota Statutes, chapter 97A."
We request adoption of this report and repassage of the bill.
Senate Conferees: Dave Johnson, Jane Krentz and Gary W. Laidig.
House Conferees: Bill Haas, Kathy Tingelstad and Betty McCollum.
Haas moved that the report of the Conference Committee on S. F. No. 3036 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
S. F. No. 3036, A bill for an act relating to natural resources; providing for seizure and administrative forfeiture of certain firearms and abandoned property; modifying authority to issue trespass citations; modifying provisions for forfeited vehicles; modifying definition of peace officer; providing civil penalties; appropriating money; amending Minnesota Statutes 1998, sections 97B.002, subdivision 1; and 609.5312, subdivision 4; Minnesota Statutes 1999 Supplement, sections 169.1217, subdivision 9; and 169.123, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 97A.
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 112 yeas and 17 nays as follows:
Those who voted in the affirmative were:
Abeler | Dorman | Howes | Luther | Paulsen | Swenson | |
Abrams | Dorn | Huntley | Mahoney | Pawlenty | Sykora | |
Anderson, I. | Entenza | Jaros | Mares | Paymar | Tingelstad | |
Bakk | Erhardt | Jennings | Mariani | Pelowski | Tomassoni | |
Biernat | Folliard | Johnson | Marko | Peterson | Trimble | |
Bishop | Fuller | Juhnke | McCollum | Pugh | Tuma | |
Boudreau | Gleason | Kahn | McElroy | Rest | Tunheim | |
Bradley | Goodno | Kalis | McGuire | Rhodes | Vandeveer | |
Broecker | Greenfield | Kelliher | Milbert | Rostberg | Wagenius | |
Carlson | Greiling | Knoblach | Molnau | Rukavina | Wejcman | |
Carruthers | Gunther | Koskinen | Mullery | Schumacher | Wenzel | |
Cassell | Haake | Kubly | Murphy | Seagren | Westerberg | |
Chaudhary | Haas | Kuisle | Ness | Seifert, J. | Westfall | |
Clark, K. | Hackbarth | Larsen, P. | Nornes | Skoe | Westrom | |
Daggett | Harder | Larson, D. | Olson | Skoglund | Winter | |
Davids | Hasskamp | Leighton | Opatz | Stanek | Workman | |
Dawkins | Hilty | Lenczewski | Osthoff | Stang | Spk. Sviggum | |
Dehler | Holberg | Leppik | Otremba | Storm | ||
Dempsey | Holsten | Lieder | Ozment | Swapinski | ||
Those who voted in the negative were:
Anderson, B. | Erickson | Kielkucki | Mulder | Rifenberg | Van Dellen | |
Buesgens | Finseth | Krinkie | Osskopp | Seifert, M. | Wilkin | |
Clark, J. | Gerlach | Lindner | Reuter | Smith | ||
The bill was repassed, as amended by Conference, and its title agreed to.
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
S. F. No. 3234.
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
CONFERENCE COMMITTEE REPORT ON S. F. NO. 3234
A bill for an act relating to state government; authorizing legislative governmental operations committees to formally object to administrative rules; modifying the review of proposed rules; creating a rules task force; providing appointments; amending Minnesota Statutes 1998, sections 3.842, subdivision 4a; and 14.15, subdivision 4; Minnesota Statutes 1999 Supplement, section 14.26, subdivision 3.
May 3, 2000
The Honorable Allan H. Spear
President of the Senate
The Honorable Steve Sviggum
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 3234, report that we have agreed upon the items in dispute and recommend as follows:
That the House recede from its amendments and that S. F. No. 3234 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 1998, section 3.842, subdivision 4a, is amended to read:
Subd. 4a. [OBJECTIONS TO RULES.] (a) For purposes of this subdivision, "committee" means the house of representatives policy committee or senate policy committee with primary jurisdiction over state governmental operations. The commission or a committee may object to a rule as provided in this subdivision. If the commission or a committee objects to all or some portion of a rule because the commission or committee considers it to be beyond the procedural or substantive authority delegated to the agency, including a proposed rule submitted under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), the commission or committee may file that objection in the office of the secretary of state. The filed objection must contain a concise statement of the commission's or committee's reasons for its action. An objection to a proposed rule submitted by the commission or a committee under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), may not be filed before the rule is adopted.
(b) The secretary of state shall affix to each objection a certification of the date and time of its filing and as soon after the objection is filed as practicable shall transmit a certified copy of it to the agency issuing the rule in question and to the revisor of statutes. The secretary of state shall also maintain a permanent register open to public inspection of all objections by the commission or committee.
(c) The commission or committee shall publish and index an objection filed under this section in the next issue of the State Register. The revisor of statutes shall indicate the existence of the objection adjacent to the rule in question when that rule is published in Minnesota Rules.
(d) Within 14 days after the filing of an objection by the commission or committee to a rule, the issuing
agency shall respond in writing to the commission objecting entity. After receipt of the response,
the commission or committee may withdraw or modify its objection.
(e) After the filing of an objection by the commission or committee that is not subsequently withdrawn, the burden is upon the agency in any proceeding for judicial review or for enforcement of the rule to establish that the whole or portion of the rule objected to is valid.
(f) The failure of the commission or a committee to object to a rule is not an implied legislative authorization of its validity.
(g) In accordance with sections 14.44 and 14.45, the commission or a committee may petition for a declaratory judgment to determine the validity of a rule objected to by the commission or committee. The action must be started within two years after an objection is filed in the office of the secretary of state.
(h) The commission or a committee may intervene in litigation arising from agency action. For purposes of this paragraph, agency action means the whole or part of a rule, or the failure to issue a rule.
Sec. 2. Minnesota Statutes 1998, 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 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 coordinating commission
and to the house of representatives and senate policy committees with primary jurisdiction over state
governmental operations for the commission's advice and comment. The agency may not adopt the rule
until it has received and considered the advice of the commission and committees. However, the agency
is not required to wait for the commission's advice for more than 60 days after the commission has
and committees have received the agency's submission.
Sec. 3. Minnesota Statutes 1999 Supplement, section 14.26, subdivision 3, is amended to read:
Subd. 3. [REVIEW.] (a) Within 14 days, the administrative law judge shall approve or disapprove the rule as to its legality and its form to the extent that the form relates to legality, including the issues of whether the rule if modified is substantially different, as determined under section 14.05, subdivision 2, from the rule as originally proposed, 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. If the rule is approved, the administrative law judge shall promptly file three 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 and to the governor. If the rule is disapproved, the administrative law judge shall state in writing the reasons for the disapproval and make recommendations to overcome the defects.
(b) The written disapproval must be submitted to the chief administrative law judge for approval. If the chief administrative law judge approves of the findings of the administrative law judge, the chief administrative law judge shall send the statement of the reasons for disapproval of the rule to the agency, the legislative coordinating commission, the house of representatives and senate policy committees with primary jurisdiction over state governmental operations, and the revisor of statutes and advise the agency and the revisor of statutes of actions that will correct the defects. The rule may not be filed in the office of the secretary of state, nor published, until the chief administrative law judge determines that the defects have been corrected or, if applicable, that the agency has satisfied the rule requirements for the adoption of a substantially different rule.
(c) If the chief administrative law judge determines that the need for or reasonableness of the rule has not been
established, 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 coordinating commission and
to the house of representatives and senate policy committees with primary jurisdiction over state governmental
operations for the commission's advice and comment. The agency may not adopt the rule until it has
received and considered the advice of the commission and committees. However, the agency is not required
to wait for the commission's advice for more than 60 days after the commission has and
committees have received the agency's submission.
(d) The administrative law judge 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 administrative law judge 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. 4. [14.3691] [RULE REVIEW AND LEGISLATIVE OVERSIGHT.]
Subdivision 1. [REPORTS.] An entity whose rules are scheduled for review under this section must report to the governor and the appropriate committees of the legislature by August 1 of the year before the legislative session in which the entity's rules are scheduled for review. The speaker of the house of representatives and the senate committee on rules and administration shall designate the appropriate committees to receive these reports. The report must: (1) list any rules that the entity recommends for repeal; (2) list and briefly describe the rationale for rules that the entity believes should remain in effect; and (3) suggest any changes in rules that would improve the agency's ability to meet the regulatory objectives prescribed by the legislature, while reducing any unnecessary burdens on regulated parties. Any costs of preparing this report must be absorbed within funds otherwise appropriated to the entity.
Subd. 2. [SCHEDULE.] (a) Rules of the administration department, agriculture department, children, families, and learning department, commerce department, corrections department, economic security department, employee relations department, and health department will be reviewed before and during the legislative session in 2002. Policies and procedures of the board of trustees of the Minnesota state colleges and universities that would be rules if they were not exempt from chapter 14 will be reviewed before and during the legislative session in 2002.
(b) Rules of the environmental assistance office, board of teaching, housing finance agency, human rights department, human services department, labor and industry department, and mediation services bureau will be reviewed before and during the legislative session in 2003.
(c) Rules of the natural resources department, pollution control agency, public safety department, public service department, and revenue department will be reviewed before and during the legislative session in 2004.
(d) Rules of the state planning agency, trade and economic development department, transportation department, and veterans affairs department will be reviewed before and during the legislative session in 2005.
Subd. 3. [EXPIRATION.] This section expires June 30, 2005.
Sec. 5. [RULES TASK FORCE.]
A rules task force of eight members is created. The governor must appoint four members. The task force also
includes one member each from the minority and majority caucus in the house of representatives and the senate.
House members must be appointed by the speaker. Senate members must be appointed by the committee on rules
and administration. The member of the majority caucus appointed by the speaker of the house of representatives
must convene the first meeting. The members of the task force must elect a chair. The legislative coordinating
commission and an agency designated by the governor must provide staff assistance and administrative support for
the task force within existing appropriations. The task force must study and make recommendations to the governor and the legislature by January 15, 2001, on issues relating to review of agency rules. The recommendations must include, but are not limited to:
(1) a process to be used by agencies, the governor, and the legislature to identify and prioritize rules and related laws and programs that will be subject to legislative review;
(2) a process by which the legislature will review rules and related laws and programs identified under clause (1);
(3) the estimated agency and legislative time and resources required for review of rules and related laws and programs under the processes recommended under clauses (1) and (2);
(4) the effect of possible repeal of agency rules on the state budget and any loss of benefits to citizens of the state resulting from such a repeal;
(5) the desirability of changes in the rulemaking requirements of the Administrative Procedure Act, given increased legislative scrutiny of rules; and
(6) an analysis of ways to ensure or encourage compliance with state policies and goals using methods other than rulemaking, such as administrative penalty orders, descriptive guidelines, best management practices, compliance incentives, technical assistance, training, and procedural templates.
In making its recommendations, the task force must consult with interested parties, and must consider relevant state and federal laws and commitments. The task force is subject to Minnesota Statutes, section 471.705. The task force expires June 30, 2001.
Sec. 6. [TEACHER PREPARATION PROGRAMS.]
The state board of teaching must consult with representatives of faculty and administrators from Minnesota post-secondary institutions that have teacher preparation programs. The state board of teaching must report to the governmental operations and education committees of the legislature by January 15, 2001, on these institutions' opinions on the rules relating to institution and teacher preparation program approval.
Sec. 7. [REPEALER.]
(a) Minnesota Rules parts 1200.0200, 1200.0300, 1250.0200, 1250.0300, 1250.0400, 1250.0500, 1250.0600, 1250.0700, 1250.0800, 1250.0900, 1250.1000, 1250.1100, 1250.1200, 1265.0100, 1265.0200, 1265.0300, 1265.0400, 1265.0500, and 1265.0600, are repealed.
(b) Minnesota Rules, parts 1555.2205, 1555.2210, 1555.2220, 1555.2225, 1555.2230, 1555.2240, 1555.2250,
1555.2260, 1555.2270, 1555.2280, 1555.2290, 1555.2300, 1555.2310, 1555.2320, 1555.2330, 1555.2340,
1555.2350, 1555.2360, 1555.2370, 1555.2380, 1555.2390, 1555.2400, 1555.2410, 1555.2440, 1555.2450,
1555.2460, 1555.2470, 1555.2480, 1555.2490, 1555.2500, 1555.2510, 1555.2520, 1555.2530, 1555.2540,
1555.2550, 1555.2560, 1555.2570, 1555.2580, 1555.2590, 1555.2600, 1555.2610, 1555.2620, 1555.2630,
1555.2640, 1555.2650, 1555.2660, 1555.2670, 1555.2680, 1555.2690, 1555.2700, 1555.2710, 1555.2720,
1555.2730, 1555.2740, 1555.2750, 1555.2760, 1555.2770, 1555.2780, 1555.2790, 1555.2800, 1555.2810,
1555.2820, 1555.2830, 1555.2840, 1555.2850, 1555.2860, 1555.2870, 1555.2880, 1555.2890, 1555.2900,
1555.2910, 1555.3000, 1555.3010, 1555.3020, 1555.3030, 1555.3040, 1555.3050, 1555.3060, 1555.3070,
1555.3080, 1555.3090, 1555.3100, 1555.3110, 1555.3120, 1555.3130, 1555.3140, 1555.3150, 1555.3160,
1555.3170, 1555.3180, 1555.3190, 1555.3200, 1555.3210, 1555.3220, 1555.3230, 1555.3240, 1555.3250,
1555.3260, 1555.3270, 1555.3280, 1555.3290, 1555.3300, 1555.3310, 1555.3320, 1555.3330, 1555.3340,
1555.3350, 1555.3360, 1555.3370, 1555.3380, 1555.3390, 1555.3400, 1555.3410, 1555.3420, 1555.3430,
1555.3440, 1555.3450, 1555.3460, 1555.3470, 1555.3480, 1555.3490, 1555.3500, 1555.3510, 1555.3520,
1555.3530, 1555.3540, 1555.3550, 1555.3560, 1555.3570, 1555.3580, 1555.3590, 1555.3600, 1555.3610,
1555.3620, 1555.3630, 1555.3640, 1555.3650, 1555.3660, 1555.3680, 1555.3700, 1555.3720, 1555.3730, 1555.3750, 1555.3770, 1555.3780, 1555.3790, 1555.3800, 1555.3830, 1555.3850, 1555.3860, 1555.3870, 1555.3880, 1555.3890, 1555.3900, 1555.3910, 1555.3920, 1555.3990, 1555.4000, 1555.4100, and 1555.4110, are repealed.
(c) Minnesota Rules parts 7402.0100, 7402.0200, 7402.0300, 7402.0400, and 7402.0500, are repealed.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 3, 5, and 6 are effective the day following final enactment. Section 7, paragraphs (a) and (b) are effective July 1, 2000."
Delete the title and insert:
"A bill for an act relating to state government; authorizing legislative governmental operations committees to formally object to administrative rules; modifying the review of proposed rules; providing for the review and repeal of certain administrative rules; creating a rules task force; providing appointments; requiring a report on teacher preparation programs; amending Minnesota Statutes 1998, sections 3.842, subdivision 4a; and 14.15, subdivision 4; Minnesota Statutes 1999 Supplement, section 14.26, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 14; repealing Minnesota Rules, parts 1200.0200; 1200.0300; 1250.0200; 1250.0300; 1250.0400; 1250.0500; 1250.0600; 1250.0700; 1250.0800; 1250.0900; 1250.1000; 1250.1100; 1250.1200; 1265.0100; 1265.0200; 1265.0300; 1265.0400; 1265.0500; 1265.0600; 1555.2205 to 1555.2410; 1555.2440 to 1555.3920; 1555.3990 to 1555.4110; 7402.0100; 7402.0200; 7401.0300; 7402.0400; and 7402.0500."
We request adoption of this report and repassage of the bill.
Senate Conferees: John C. Hottinger, Don Betzold and Dan Stevens.
House Conferees: Marty Seifert, Jim Rhodes and Gene Pelowski, Jr.
Seifert, M., moved that the report of the Conference Committee on S. F. No. 3234 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
S. F. No. 3234, A bill for an act relating to state government; authorizing legislative governmental operations committees to formally object to administrative rules; modifying the review of proposed rules; creating a rules task force; providing appointments; amending Minnesota Statutes 1998, sections 3.842, subdivision 4a; and 14.15, subdivision 4; Minnesota Statutes 1999 Supplement, section 14.26, subdivision 3.
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 116 yeas and 14 nays as follows:
Those who voted in the affirmative were:
Those who voted in the negative were:
Carruthers | Gleason | Mahoney | Paymar | Wagenius | Wejcman | |
Clark, K. | Gray | Mariani | Skoglund | |||
Dawkins | Jaros | Mullery | Trimble | |||
The bill was repassed, as amended by Conference, and its title agreed to.
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
S. F. No. 11.
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
CONFERENCE COMMITTEE REPORT ON S. F. NO. 11
A bill for an act relating to domestic abuse; providing for a six-year statute of limitations for causes of action based on domestic abuse; amending Minnesota Statutes 1998, section 541.05, subdivision 1; Minnesota Statutes 1999 Supplement, section 541.07.
May 2, 2000
The Honorable Allan H. Spear
President of the Senate
The Honorable Steve Sviggum
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 11, report that we have agreed upon the items in dispute and recommend as follows:
That the House recede from its amendments and that S. F. No. 11 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 1998, section 541.05, subdivision 1, is amended to read:
Subdivision 1. Except where the Uniform Commercial Code otherwise prescribes, the following actions shall be commenced within six years:
(1) Upon a contract or other obligation, express or implied, as to which no other limitation is expressly prescribed;
(2) Upon a liability created by statute, other than those arising upon a penalty or forfeiture or where a shorter period is provided by section 541.07;
(3) For a trespass upon real estate;
(4) For taking, detaining, or injuring personal property, including actions for the specific recovery thereof;
(5) For criminal conversation, or for any other injury to the person or rights of another, not arising on contract, and not hereinafter enumerated;
(6) For relief on the ground of fraud, in which case the cause of action shall not be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud;
(7) To enforce a trust or compel a trustee to account, where the trustee has neglected to discharge the trust, or claims to have fully performed it, or has repudiated the trust relation;
(8) Against sureties upon the official bond of any public officer, whether of the state or of any county, town, school district, or a municipality therein; in which case the limitation shall not begin to run until the term of such officer for which the bond was given shall have expired;
(9) For damages caused by a dam, used for commercial purposes; or
(10) For assault, battery, false imprisonment, or other tort, resulting in personal injury, if the conduct that gives rise to the cause of action also constitutes domestic abuse as defined in section 518B.01.
Sec. 2. Minnesota Statutes 1999 Supplement, section 541.07, is amended to read:
541.07 [TWO- OR THREE-YEAR LIMITATIONS.]
Except where the Uniform Commercial Code, this section, section 148A.06, 541.05, 541.073, or 541.076 otherwise prescribes, the following actions shall be commenced within two years:
(1) for libel, slander, assault, battery, false imprisonment, or other tort, resulting in personal injury, and all actions against veterinarians as defined in chapter 156, for malpractice, error, mistake or failure to cure, whether based on contract or tort; provided a counterclaim may be pleaded as a defense to any action for services brought by a veterinarian after the limitations period if it was the property of the party pleading it at the time it became barred and was not barred at the time the claim sued on originated, but no judgment thereof except for costs can be rendered in favor of the party so pleading it;
(2) upon a statute for a penalty or forfeiture, except as provided in sections 541.074 and 541.075;
(3) for damages caused by a dam, other than a dam used for commercial purposes; but as against one holding under the preemption or homestead laws, the limitations shall not begin to run until a patent has been issued for the land so damaged;
(4) against a master for breach of an indenture of apprenticeship; the limitation runs from the expiration of the term of service;
(5) for the recovery of wages or overtime or damages, fees or penalties accruing under any federal or state law respecting the payment of wages or overtime or damages, fees or penalties except, that if the employer fails to submit payroll records by a specified date upon request of the department of labor and industry or if the nonpayment is willful and not the result of mistake or inadvertence, the limitation is three years. (The term "wages" means all remuneration for services or employment, including commissions and bonuses and the cash value of all remuneration in any medium other than cash, where the relationship of master and servant exists and the term "damages" means single, double, or treble damages, accorded by any statutory cause of action whatsoever and whether or not the relationship of master and servant exists);
(6) for damages caused by the establishment of a street or highway grade or a change in the originally established grade;
(7) against the person who applies the pesticide for injury or damage to property resulting from the application, but not the manufacture or sale, of a pesticide.
Sec. 3. [JOINT DOMESTIC ABUSE PROSECUTION UNIT.]
Subdivision 1. [ESTABLISHMENT.] A pilot project may be established to develop a joint domestic abuse prosecution unit administered by the Ramsey county attorney's office and the St. Paul city attorney's office. The unit would have authority to prosecute misdemeanors, gross misdemeanors, and felonies. The unit would also coordinate efforts with child protection attorneys. The unit would include four cross-deputized assistant city attorneys and assistant county attorneys. A victim/witness advocate, a law clerk, and a legal secretary would provide support.
Subd. 2. [GOALS.] The goals of this pilot project are to:
(1) recognize children as both victims and witnesses in domestic abuse situations;
(2) recognize and respect the interests of children in the prosecution of domestic abuse; and
(3) reduce the exposure to domestic violence for both adult and child victims.
Subd. 3. [REPORT.] If the project is established, the Ramsey county attorney's office and the St. Paul city attorney's office must report to the legislature on the pilot project. The report may include the number and types of cases referred, the number of cases charged, the outcome of cases, and other relevant outcome measures. A progress report is due January 15, 2001, and a final report is due January 15, 2002.
Subd. 4. [SHARING OF PILOT PROJECT RESULTS.] If the project is established, the Ramsey county attorney's office and the St. Paul city attorney's office must share the results of the pilot project with the state and other counties and cities.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 and 2 are effective August 1, 2000, and apply to causes of action arising on or after that date."
Delete the title and insert:
"A bill for an act relating to domestic abuse; providing for a six-year statute of limitations for causes of action based on domestic abuse; authorizing a joint domestic abuse prosecution unit pilot project in Ramsey county; amending Minnesota Statutes 1998, section 541.05, subdivision 1; Minnesota Statutes 1999 Supplement, section 541.07."
We request adoption of this report and repassage of the bill.
Senate Conferees: Don Betzold, Ember R. Junge and David L. Knutson.
House Conferees: Dave Bishop, Sherry Broecker and Andy Dawkins.
Bishop moved that the report of the Conference Committee on S. F. No. 11 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
S. F. No. 11, A bill for an act relating to domestic abuse; providing for a six-year statute of limitations for causes of action based on domestic abuse; amending Minnesota Statutes 1998, section 541.05, subdivision 1; Minnesota Statutes 1999 Supplement, section 541.07.
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 130 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler | Dorman | Holsten | Lindner | Paulsen | Swapinski | |
Abrams | Dorn | Howes | Luther | Pawlenty | Swenson | |
Anderson, B. | Entenza | Huntley | Mahoney | Paymar | Sykora | |
Anderson, I. | Erhardt | Jaros | Mares | Pelowski | Tingelstad | |
Bakk | Erickson | Jennings | Mariani | Peterson | Tomassoni | |
Biernat | Finseth | Johnson | Marko | Pugh | Trimble | |
Bishop | Folliard | Juhnke | McCollum | Rest | Tuma | |
Boudreau | Fuller | Kahn | McElroy | Reuter | Tunheim | |
Bradley | Gerlach | Kalis | McGuire | Rhodes | Van Dellen | |
Broecker | Gleason | Kelliher | Milbert | Rifenberg | Vandeveer | |
Buesgens | Goodno | Kielkucki | Molnau | Rostberg | Wagenius | |
Carlson | Gray | Knoblach | Mulder | Rukavina | Wejcman | |
Carruthers | Greenfield | Koskinen | Mullery | Schumacher | Wenzel | |
Cassell | Greiling | Krinkie | Murphy | Seagren | Westerberg | |
Chaudhary | Gunther | Kubly | Ness | Seifert, J. | Westfall | |
Clark, J. | Haake | Kuisle | Nornes | Seifert, M. | Westrom | |
Clark, K. | Haas | Larsen, P. | Olson | Skoe | Wilkin | |
Daggett | Hackbarth | Larson, D. | Opatz | Skoglund | Winter | |
Davids | Harder | Leighton | Osskopp | Smith | Workman | |
Dawkins | Hasskamp | Lenczewski | Osthoff | Stanek | Spk. Sviggum | |
Dehler | Hilty | Leppik | Otremba | Stang | ||
Dempsey | Holberg | Lieder | Ozment | Storm | ||
The bill was repassed, as amended by Conference, and its title agreed to.
Pawlenty moved that the House recess subject to the call of the Chair. The motion prevailed.
RECONVENED
The House reconvened and was called to order by Speaker pro tempore Paulsen.
The following Conference Committee Report was received:
CONFERENCE COMMITTEE REPORT ON H. F. NO. 4127
A bill for an act relating to financing state and local government; providing a sales tax rebate; extending the time to qualify for and making certain other changes to the 1999 sales tax rebate; providing agricultural assistance; reducing individual income tax rates; making changes to income, franchise, withholding, sales and use, property, motor vehicle sales and registration, mortgage registry, health care provider, motor fuels, cigarette and tobacco, liquor, insurance premiums, lawful gambling, taconite production, solid waste, estate, and special taxes; changing and allowing tax credits, subtractions, and exemptions; conforming with changes in federal income tax provisions; providing for allocation and apportionment of income; changing property tax valuation, assessment, levy, classification, homestead, credit, aid, exemption, deferral, review, appeal, abatement, and distribution provisions; extending levy limits and changing levy authority; authorizing certain light rail transit spending if approved by the voters; reducing rates of health care provider taxes; reducing rates on lawful gambling and solid waste management taxes; changing tax increment financing provisions; providing special authority for certain political subdivisions; changing and clarifying tax administration, collection, enforcement, interest, and penalty provisions; changing revenue recapture provisions; freezing the taconite production tax; regulating state and local business subsidies; modifying certain aids to local units of government; recodifying sales and use taxes; recodifying insurance tax laws; establishing a legislative budget office; validating corporations established by political subdivisions and regulating their financing; changing county reporting requirements; providing certain duties and powers to the commissioner of revenue, the state auditor, and to the attorney general; defining terms; classifying data; requiring studies; providing for the transfer of excess surplus in the workers' compensation assigned risk plan; appropriating money; amending Minnesota Statutes 1998, sections 3.98, subdivision 3; 8.30; 16A.46; 37.13; 43A.316, subdivision 9; 43A.317, subdivision 8; 60A.15, subdivision 1; 60A.19, subdivision 8; 60A.198, subdivision 3; 60A.208, subdivision 8; 60A.209, subdivision 3; 60C.17; 60E.04, subdivision 4; 60E.095; 61B.30, subdivision 1; 62C.01, subdivision 3; 62E.10, subdivision 1; 62E.13, subdivision 10; 62L.13, subdivision 3; 62T.10; 64B.24; 71A.04, subdivision 1; 79.252, subdivision 4; 79.34, subdivision 1a; 115A.557, subdivision 3; 115A.69, subdivision 6; 116A.25; 126C.01, by adding a subdivision; 126C.17, subdivision 10; 176A.08; 238.08, subdivision 3; 270.063, by adding a subdivision; 270.072, subdivision 2, and by adding a subdivision; 270A.03, subdivision 7; 270A.07, subdivision 1; 273.111, subdivision 3; 273.124, by adding a subdivision; 273.125, subdivision 8; 273.37, subdivision 3; 275.065, subdivisions 3, 6, 8, and by adding a subdivision; 275.07, subdivision 1; 275.08, subdivision 1b; 275.70, by adding a subdivision; 275.72, subdivisions 1 and 3; 276.19, subdivision 1; 289A.08, by adding a subdivision; 289A.20, subdivision 2; 289A.26, subdivision 1; 289A.31, subdivision 7; 289A.35; 289A.60, subdivisions 1 and 14; 290.01, subdivisions 19c and 19d; 290.015, subdivisions 1, 3, and 4; 290.06, subdivision 22, and by adding subdivisions; 290.0671, subdivision 6; 290.0672, subdivisions 1 and 2; 290.0673, subdivision 8; 290.17, subdivision 2; 290.35, subdivisions 2, 3, and 6; 290.92, subdivisions 3, 28, and 29; 290B.04, by adding a subdivision; 290B.05, subdivision 3; 290B.07; 290B.08, subdivisions 1 and 2; 290B.09, subdivision 2; 295.50, subdivision 9b; 295.58; 296A.03, subdivision 5; 296A.21, subdivisions 2 and 3; 296A.22, subdivision 6; 297A.01, subdivisions 13, 15, 16, and by adding a subdivision; 297A.15, by adding a subdivision; 297A.25, subdivisions 5, 16, 34, 62, 76, and by adding subdivisions; 297B.01, subdivision 7; 297B.03; 297E.02, by adding a subdivision; 297F.01, subdivisions 7, 14, 17, and by adding subdivisions; 297F.08, subdivisions 2, 5, 8, and 9; 297F.13, subdivision 4; 297F.21, subdivisions 1 and 3; 297G.01, by adding a subdivision; 297G.03, subdivision 1; 297H.02, subdivision 2; 297H.03, subdivision 2; 297H.04, subdivision 2; 297H.13, subdivisions 2, 4, and by adding a subdivision; 360.035; 424.165; 429.011, subdivisions 2a and 5; 429.021, subdivision 1; 429.031, subdivision 1; 458A.09; 458A.30; 458D.23; 469.040, by adding a subdivision; 469.115; 469.127; 469.1734, subdivision 4; 469.174, subdivisions 9, 10, 11, 12, 14, and 22; 469.175, subdivisions 1a, 2, 2a, 3, 4, 5, and 6; 469.176, subdivisions 1b and 4d; 469.1761, subdivision 4; 469.1763, subdivision 2, and by adding a subdivision; 469.177, subdivision 1; 469.1813, subdivision 4; 473.388, subdivisions 4 and 7; 473.446, subdivision 1, and by adding a subdivision; 473.448; 473.545; 473.608, subdivision 2; and 477A.06, subdivision 3; Minnesota Statutes 1999 Supplement, sections 16D.09, subdivision 2; 43A.23, subdivision 1; 60A.19, subdivision 6; 116J.993, subdivision 3; 116J.994, subdivisions 1, 3, 4, 5, 6, 7, 8, and 9; 116J.995; 168.012, subdivision 1; 270.65; 270A.03, subdivision 2; 270A.07, subdivision 2; 272.02, subdivision 39, and by adding a subdivision; 273.11, subdivision 1a; 273.124, subdivisions 1, 8, and 14; 273.13, subdivisions 22, 23, 24, 25, and 31; 273.1382, subdivisions 1, 1a, and 1b; 273.1398, subdivisions 1a and 4a; 275.065, subdivision 5a; 275.70,
subdivision 5; 275.71, subdivisions 2, 3, and 4; 287.01, subdivision 2; 289A.02, subdivision 7; 289A.20, subdivision 4; 289A.55, subdivision 9; 290.01, subdivisions 19, 19b, and 31; 290.06, subdivisions 2c and 2d; 290.0671, subdivision 1; 290.0674, subdivision 2; 290.0675, subdivisions 1, 2, and 3; 290.091, subdivisions 1, 2, and 6; 290.191, subdivisions 2 and 3; 290.9725; 290A.03, subdivision 15; 290B.03, subdivision 1; 290B.05, subdivision 1; 291.005, subdivision 1; 295.52, subdivision 7; 295.53, subdivision 1; 297A.25, subdivisions 9 and 11; 297E.02, subdivisions 1, 4, and 6; 297F.08, subdivision 8a; 297H.05; 298.24, subdivision 1; 383D.74, subdivision 2; 469.101, subdivision 2; 469.1771, subdivision 1; 469.1813, subdivisions 1 and 6; 477A.011, subdivision 36; 477A.03, subdivision 2; 477A.06, subdivision 1; and 505.08, subdivision 3; Laws 1987, chapter 402, section 2, subdivisions 1, 4, and 5; Laws 1988, chapter 645, section 3, as amended; Laws 1995, First Special Session chapter 3, article 15, section 25; Laws 1997, chapter 231, article 1, section 19, subdivisions 1, as amended, and 3, as amended; Laws 1999, chapter 112, section 1, subdivision 1; Laws 1999, chapter 243, article 1, section 2; article 6, section 18; proposing coding for new law in Minnesota Statutes, chapters 3; 273; 278; 297A; 465; and 473; proposing coding for new law as Minnesota Statutes, chapter 297I; repealing Minnesota Statutes 1998, sections 60A.15; 60A.152; 60A.198, subdivision 6; 60A.199, subdivisions 2, 3, 4, 5, 6, 6a, 7, 8, 9, 10, and 11; 60A.209, subdivisions 4 and 5; 69.54; 69.55; 69.56; 69.57; 69.58; 69.59; 69.60; 69.61; 71A.04, subdivision 2; 270.072, subdivision 5; 270.075, subdivisions 3 and 4; 270.083; 273.127; 273.13, subdivision 24a; 273.1316; 297A.01; 297A.02; 297A.022; 297A.023; 297A.03; 297A.04; 297A.041; 297A.06; 297A.065; 297A.07; 297A.09; 297A.10; 297A.11; 297A.12; 297A.13; 297A.135; 297A.14; 297A.141; 297A.15; 297A.16; 297A.17; 297A.18; 297A.21; 297A.211; 297A.213; 297A.22; 297A.23; 297A.24; 297A.25; 297A.2531; 297A.2545; 297A.255; 297A.256; 297A.2571; 297A.2572; 297A.2573; 297A.259; 297A.26; 297A.28; 297A.33, subdivision 2; 297A.44, subdivision 1; 297A.46; 297A.47; 297A.48; 299F.21; 299F.22; 299F.23; 299F.24; 299F.25; 299F.26; 465.715, subdivisions 1, 2, and 3; 469.055, subdivision 5; 469.101, subdivision 21; 469.135; 469.136; 469.137; 469.138; 469.139; 469.140; 469.174, subdivision 13; 469.175, subdivision 6a; and 469.176, subdivision 4a; Minnesota Statutes 1999 Supplement, sections 290.06, subdivision 26; 290.9726, subdivision 7; and 465.715, subdivision 1a; Minnesota Rules, parts 2765.1500, subpart 6; and 8160.0300, subpart 4.
May 9, 2000
The Honorable Steve Sviggum
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 4127, report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 4127 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
2000 SALES TAX REBATE
Section 1. [STATEMENT OF PURPOSE.]
(a) The state of Minnesota derives revenues from a variety of taxes, fees, and other sources, including the state sales tax.
(b) It is fair and reasonable to refund the existing state budget surplus in the form of a rebate of nonbusiness consumer sales taxes paid by individuals in calendar year 1998.
(c) Information concerning the amount of sales tax paid at various income levels is contained in the Minnesota tax incidence report, which is written by the commissioner of revenue and presented to the legislature according to Minnesota Statutes, section 270.0682.
(d) It is fair and reasonable to use information contained in the Minnesota tax incidence report, updated to calendar year 1998, to determine the proportionate share of the sales tax rebate due each eligible taxpayer since no effective or practical mechanism exists for determining the amount of actual sales tax paid by each eligible individual.
Sec. 2. [SALES TAX REBATE.]
(a) An individual who:
(1) was eligible for a credit under Laws 1998, chapter 389, article 1, section 1, and who filed for or received that credit on or before November 30, 2000; or
(2) was a resident of Minnesota for any part of 1998, and filed a 1998 Minnesota income tax return on or before November 30, 2000, and had a tax liability before refundable credits on that return of at least $1 but did not file the claim for credit authorized under Laws 1998, chapter 389, article 1, section 1, as amended, and who was not allowed to be claimed as a dependent on a 1998 federal income tax return filed by another person; or
(3) had the property taxes payable on his or her homestead abated to zero under Laws 1998, chapter 383, section 20, shall receive a sales tax rebate.
(b) The sales tax rebate for taxpayers who qualify under paragraph (a) as married filing joint or head of household must be computed according to the following schedule:
Income Sales Tax Rebate
less than $2,500 $168
at least $2,500 but less than $5,000 $217
at least $5,000 but less than $10,000 $231
at least $10,000 but less than $15,000 $253
at least $15,000 but less than $20,000 $275
at least $20,000 but less than $25,000 $299
at least $25,000 but less than $30,000 $312
at least $30,000 but less than $35,000 $338
at least $35,000 but less than $40,000 $369
at least $40,000 but less than $45,000 $396
at least $45,000 but less than $50,000 $417
at least $50,000 but less than $60,000 $444
at least $60,000 but less than $70,000 $476
at least $70,000 but less than $80,000 $523
at least $80,000 but less than $90,000 $562
at least $90,000 but less than $100,000 $620
at least $100,000 but less than $120,000 $671
at least $120,000 but less than $140,000 $735
at least $140,000 but less than $160,000 $795
at least $160,000 but less than $180,000 $851
at least $180,000 but less than $200,000 $904
at least $200,000 but less than $400,000 $1,157
at least $400,000 but less than $600,000 $1,522
at least $600,000 but less than $800,000 $1,826
at least $800,000 but less than $1,000,000 $2,093
(c) The sales tax rebate for individuals who qualify under paragraph (a) as single or married filing separately must be computed according to the following schedule:
Income Sales Tax Rebate
less than $2,500 $95
at least $2,500 but less than $5,000 $116
at least $5,000 but less than $10,000 $137
at least $10,000 but less than $15,000 $184
at least $15,000 but less than $20,000 $210
at least $20,000 but less than $25,000 $228
at least $25,000 but less than $30,000 $238
at least $30,000 but less than $40,000 $259
at least $40,000 but less than $50,000 $290
at least $50,000 but less than $70,000 $342
at least $70,000 but less than $100,000 $435
at least $100,000 but less than $140,000 $524
at least $140,000 but less than $200,000 $632
at least $200,000 but less than $400,000 $857
at least $400,000 but less than $600,000 $1,128
$600,000 and over $1,200
(d) Individuals who were not residents of Minnesota for any part of 1998 and who paid more than $10 in Minnesota sales tax on nonbusiness consumer purchases in that year qualify for a rebate under this paragraph only. Qualifying nonresidents must file a claim for rebate on a form prescribed by the commissioner by November 30, 2000. The claim must include receipts showing the Minnesota sales tax paid and the date of the sale. Taxes paid on purchases allowed in the computation of federal taxable income or reimbursed by an employer are not eligible for the rebate. The commissioner shall determine the qualifying taxes paid and rebate the lesser of:
(1) 29.7 percent of that amount; or
(2) the maximum amount for which the claimant would have been eligible as determined under paragraph (b) if the taxpayer filed the 1998 federal income tax return as a married taxpayer filing jointly or head of household, or as determined under paragraph (c) for other taxpayers.
(e) "Income," for purposes of this section other than paragraph (d), is taxable income as defined in section 63 of the Internal Revenue Code of 1986, as amended through December 31, 1997, plus the sum of any additions to federal taxable income for the taxpayer under Minnesota Statutes, section 290.01, subdivision 19a, and reported on the original 1998 income tax return, including subsequent adjustments to that return made within the time limits specified in paragraph (l). For an individual who was a resident of Minnesota for less than the entire year, the sales tax rebate equals the sales tax rebate calculated under paragraph (b) or (c) multiplied by the percentage determined pursuant to Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e), as calculated on the original 1998 income tax return, including subsequent adjustments to that return made within the time limits specified in paragraph (l). For purposes of paragraph (d), "income" is taxable income as defined in section 63 of the Internal Revenue Code of 1986, as amended through December 31, 1997, and reported on the taxpayer's original federal tax return for the first taxable year beginning after December 31, 1997.
(f) Individuals who were residents of Minnesota for all of 1998, were not eligible for a rebate under paragraph (a), attained the age of 18 on or before December 31, 1998, and received in 1998 social security benefits as defined in section 86(d)(1) of the Internal Revenue Code of 1986, as amended through December 31, 1999, are entitled to a rebate of $95. If the Social Security Administration or Railroad Retirement Board is paying benefits to a recipient by electronic funds transfers in 2000, the rebate under this paragraph must be paid by the commissioner through electronic funds transfer to the same financial institution and into the same account into which the Social Security Administration or Railroad Retirement Board transfers social security benefits in calendar year 2000.
(g) An individual who:
(1) was allowed to be claimed as a dependent on a 1998 federal income tax return filed by another person;
(2) would have otherwise been eligible for a rebate under clause (a)(2); and
(3) reported earned income as defined in section 32(c)(2)(A)(i) of the Internal Revenue Code,
is eligible for a rebate under this paragraph only. The rebate under this paragraph equals 35 percent of the amount allowed under the schedule in paragraph (c) based on the individual's income. For an individual who was a resident of Minnesota for less than the entire year, the sales tax rebate equals the rebate calculated under this paragraph multiplied by the percentage determined pursuant to Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e), as calculated on the original 1998 income tax return.
(h) An individual who
(1) was a resident of Minnesota for any part of 1998;
(2) was not eligible for a rebate under paragraph (a) or (f);
(3) was not allowed to be claimed as a dependent on a 1998 federal income tax return by another person; and
(4) filed a 1998 Minnesota income tax return before November 30, 2000, in order to
(i) claim a credit under section 290.067, 290.0671, or 290.0674;
(ii) claim a refund of withheld taxes; or
(iii) claim a refund of estimated taxes,
is eligible for a rebate under this paragraph only. For married couples filing joint returns and heads of households, the rebate equals the minimum amount in paragraph (b). For single filers and married individuals filing separate returns, the rebate equals the minimum amount in paragraph (c). For an individual who was a resident of Minnesota for less than the entire year, the sales tax rebate equals the rebate calculated under this paragraph multiplied by the percentage determined pursuant to Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e), as calculated on the original 1998 income tax return.
(i) For a fiscal year taxpayer, the dates in paragraphs (a) through (d) are extended one month for each month in calendar year 1998 that occurred prior to the start of the individual's 1998 fiscal tax year.
(j) Before payment, the commissioner of revenue shall adjust the rebate as follows:
the rebates calculated in paragraphs (b), (c), (d), (f), (g), and (h) must be proportionately reduced to account for (i) rebates under paragraphs (g) and (h), and (ii) 1998 income tax returns that are filed on or after January 1, 2000, but before June 1, 2000, so that the estimated amount of sales tax rebates payable under paragraphs (b), (c), (d), (f), (g), and (h) on the date the rebate is processed does not exceed $635,600,000. The adjustment under this paragraph is not a rule subject to Minnesota Statutes, chapter 14.
(k) The commissioner of revenue may begin making sales tax rebates by July 1, 2000. Sales tax rebates not paid by January 1, 2001, bear interest at the rate specified in Minnesota Statutes, section 270.75.
(l) A sales tax rebate shall not be adjusted based on changes to a 1998 income tax return that are made by order of assessment after the date the rebate is processed, or made by the taxpayer that are filed with the commissioner of revenue after that date.
(m) Individuals who filed a joint income tax return for 1998 shall receive a joint sales tax rebate. After the sales tax rebate has been issued, but before the check has been cashed, either joint claimant may request a separate check for one-half of the joint sales tax rebate. Notwithstanding anything in this section to the contrary, if prior to payment, the commissioner has been notified that persons who filed a joint 1998 income tax return are living at separate addresses, as indicated on their 1999 income tax return or otherwise, the commissioner may issue separate checks to each person. The amount payable to each person is one-half of the total joint rebate.
(n) If a rebate is received by the estate of a deceased individual after the probate estate has been closed, and if the original rebate check is returned to the commissioner with a copy of the decree of descent or final account of the estate, social security numbers, and addresses of the beneficiaries, the commissioner may issue separate checks in proportion to their share in the residuary estate in the names of the residuary beneficiaries of the estate.
(o) The sales tax rebate is a "Minnesota tax law" for purposes of Minnesota Statutes, section 270B.01, subdivision 8.
(p) The sales tax rebate is "an overpayment of any tax collected by the commissioner" for purposes of Minnesota Statutes, section 270.07, subdivision 5. For purposes of this paragraph, a joint sales tax rebate is payable to each spouse equally.
(q) If the commissioner of revenue cannot locate an individual entitled to a sales tax rebate by July 1, 2002, or if an individual to whom a sales tax rebate was issued has not cashed the check by July 1, 2002, the right to the sales tax rebate lapses and the check must be deposited in the general fund.
(r) Individuals entitled to a sales tax rebate pursuant to paragraph (a), (f), (g), or (h) but who did not receive one, and individuals who receive a sales tax rebate that was not correctly computed, must file a claim with the commissioner before July 1, 2001, in a form prescribed by the commissioner. These claims must be treated as if they are a claim for refund under Minnesota Statutes, section 289A.50, subdivisions 4 and 7.
(s) The sales tax rebate is a refund subject to revenue recapture under Minnesota Statutes, chapter 270A. The commissioner of revenue shall remit the entire refund to the claimant agency, which shall, upon the request of the spouse who does not owe the debt, refund one-half of the joint sales tax rebate to the spouse who does not owe the debt.
(t) The rebate is a reduction of fiscal year 2000 sales tax revenues. The amount necessary to make the sales tax rebates and interest provided in this section is appropriated from the general fund to the commissioner of revenue in fiscal year 2000 and is available until June 30, 2002.
(u) If a sales tax rebate check is cashed by someone other than the payee or payees of the check, and the commissioner of revenue determines that the check has been forged or improperly endorsed or the commissioner determines that a rebate was overstated or erroneously issued, the commissioner may issue an order of assessment for the amount of the check or the amount the check is overstated against the person or persons cashing it. The assessment must be made within two years after the check is cashed, but if cashing the check constitutes theft under Minnesota Statutes, section 609.52, or forgery under Minnesota Statutes, section 609.631, the assessment can be made at any time. The assessment may be appealed administratively and judicially. The commissioner may take action to collect the assessment in the same manner as provided by Minnesota Statutes, chapter 289A, for any other order of the commissioner assessing tax.
(v) Notwithstanding Minnesota Statutes, sections 9.031, 16A.40, 16B.49, 16B.50, and any other law to the contrary, the commissioner of revenue may take whatever actions the commissioner deems necessary to pay the rebates required by this section, and may, in consultation with the commissioner of finance and the state treasurer, contract with a private vendor or vendors to process, print, and mail the rebate checks or warrants required under this section and receive and disburse state funds to pay those checks or warrants.
(w) The commissioner may pay rebates required by this section by electronic funds transfer to individuals who requested that their 1999 individual income tax refund be paid through electronic funds transfer. The commissioner may make the electronic funds transfer payments to the same financial institution and into the same account as the 1999 individual income tax refund.
Sec. 3. [APPROPRIATIONS.]
(a) $1,730,600 is appropriated from the general fund to the commissioner of revenue to administer the sales tax rebates in this article and in article 3 for fiscal year 2000. Any unencumbered balance remaining on June 30, 2000, does not cancel but is available for expenditure by the commissioner of revenue until June 30, 2001. Notwithstanding Minnesota Statutes, section 16A.285, and except as provided in paragraph (b), the commissioner of revenue may not use this appropriation for any purpose other than administering the 1999 and 2000 sales tax rebates. This is a one-time appropriation and may not be added to the agency's budget base.
(b) Of the amount appropriated in paragraph (a), the necessary amount is transferred from the commissioner of revenue to the legislative auditor, not to exceed $50,000, for an audit of the appropriations to the department of revenue for administration of the property tax rebates in Laws 1997, chapter 231, article 16, section 29; and Laws 1998, chapter 389, article 1, section 4; and the appropriation for administration of the sales tax rebate in Laws 1999, chapter 243, article 1, section 3. The purpose of this audit is to determine whether the funds appropriated were expended consistent with the purpose of the appropriations. The legislative auditor shall report the findings of the audit to the legislature by January 1, 2001.
(c) $278,000 is appropriated from the general fund to the state treasurer to pay the cost of clearing sales tax rebate checks through commercial banks.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective the day following final enactment.
ARTICLE 2
AGRICULTURAL ASSISTANCE
Section 1. Laws 1999, chapter 112, section 1, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section.
(b) "Acre" means an acre of effective agricultural use land within the state of Minnesota as reported to the farm service agency on form 156EZ.
(c) "Commissioner" means the commissioner of revenue.
(d) "Effective agricultural use land" means the land suitable for growing an agricultural crop and excludes land enrolled in the conservation reserve program established by Minnesota Statutes, section 103F.515, or the water bank program established by Minnesota Statutes, section 103F.601.
(e) "Farm" or "farm operation" means an agricultural production operation with a unique farm number as reported on form 156EZ to the farm service agency, which includes at least 40 acres of effective agricultural use land.
(f) "Farm operator" means a person who is identified as the operator of a farm on form 156EZ filed with the farm service agency.
(g) "Farm service agency" means the United States Farm Service Agency.
(h) "Farmer" or "farmer at risk" means a person who produces an agricultural crop or livestock and is reported to the farm service agency as bearing a percentage of the risk for the farm operation.
(i) "Livestock" means cattle, hogs, poultry, and sheep.
(j) "Livestock production facility" means a farm that has produced at least a total of $10,000 in sales of unprocessed livestock or unprocessed dairy products or receipts from the care of another farmer's livestock as reported on schedule F or form 1065 or form 1120 or 1120S of the farmer's federal income tax return for either taxable years beginning in calendar year 1997 or 1998.
(k) "Person" includes individuals, fiduciaries, estates, trusts, partnerships, joint ventures, and corporations.
EFFECTIVE DATE: This section is effective retroactively to April 23, 1999.
Sec. 2. Laws 1999, chapter 112, section 1, subdivision 2, is amended to read:
Subd. 2. [PAYMENT TO FARMERS.] Every farm operator may apply on a separate form for each farm that they operate to the commissioner for payments as provided under this subdivision. The payment shall be made to each farmer at risk for a farm operation and shall equal $4, multiplied by the number of acres of the farm operation, multiplied by the percentage of the risk borne by that farmer for that farm operation. If total payments for a farm to all farmers at risk for that farm would exceed $5,600, the payment to each farmer at risk shall be prorated so that the total payments to all farmers at risk for that farm do not exceed $5,600.
Applications shall be based on information reported to the farm service agency for crop year 1998 by
December 31, 1998. The applications shall include the social security number or federal employer identification
number or a producer number assigned by the farm service agency for each farmer and the farm service agency farm
number from form 156EZ. The commissioner shall prepare application forms for the payment and ensure that they
are available throughout the state. The commissioner shall make payments by June 30, 1999, to each eligible farmer
who applies by May 31, 1999, or within 30 days of the application if the application is received after May 31, 1999.
In no case will applications be accepted after September June 30, 1999 2000.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 3. Laws 1999, chapter 112, section 1, subdivision 7, is amended to read:
Subd. 7. [CERTIFICATION AND PAYMENT.] Any person eligible for the refund under subdivisions 4 to 8 shall
send the commissioner a copy of the certification that the taxpayer received from the county auditor. In no case will
applications be accepted after November June 30, 1999 2000. The commissioner
shall issue a refund by July 15, 1999, to each qualifying taxpayer who applied by June 15, 1999, or within 30 days
of receipt of the application if received after June 15, 1999.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 4. Laws 1999, chapter 112, section 2, is amended to read:
Sec. 2. [APPROPRIATION.]
(a) The amount necessary to fund the payments required under section 1, subdivisions 2 and 7, is appropriated
in fiscal year years 1999 and 2000 from the general fund to the commissioner of revenue.
This appropriation is available until June 30, 2000 2001.
(b) $68,000 is appropriated in fiscal year 1999 to the commissioner of revenue for distribution to counties for the costs of administering section 1, subdivisions 4 to 8. This appropriation is available until June 30, 2000. The distribution to counties shall be based on the number of refunds received under the provisions of section 1, subdivisions 4 to 8.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 5. [AGRICULTURAL ASSISTANCE IN 2000.]
Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section.
(b) "Acre" means an acre of agricultural land within a qualified county as reported on the schedule of crop insurance.
(c) "Commissioner" means the commissioner of agriculture.
(d) "Crop insurance" means federal multiple peril crop and revenue insurance, hail and wind crop insurance, or catastrophic crop insurance.
(e) "Person" includes individuals, fiduciaries, estates, trusts, partnerships, joint farm ventures, and corporations.
(f) "Qualified counties" means the counties which were declared as disaster counties in Minnesota by a 1999 presidential declaration or which are contiguous to any one of the counties which was declared a disaster county in Minnesota by a 1999 presidential declaration. The counties are: Aitkin, Becker, Beltrami, Carlton, Cass, Clay, Clearwater, Cook, Crow Wing, Hubbard, Itasca, Kanabec, Kittson, Koochiching, Lake, Lake of the Woods, Mahnomen, Marshall, Mille Lacs, Morrison, Norman, Otter Tail, Pennington, Pine, Polk, Red Lake, Roseau, St. Louis, Todd, Wadena, and Wilkin.
Subd. 2. [PAYMENT.] Every person operating a farm in a qualified county who has obtained crop insurance on that farm may apply on a form prepared by the commissioner for payments as provided under this subdivision. The payment equals $4, multiplied by the number of acres covered under the crop insurance. In no case shall total payments for any single acre of land exceed $4.
Applications must be based on information for crop year 2000. The applications must include the applicant's social security number or federal employer identification number and a copy of the schedule of crop insurance for crop year 2000. In the case of a married couple, the social security numbers or federal employer identification numbers are required for both spouses. The commissioner shall prepare application forms for the payments and ensure that they are available in the qualified counties. The commissioner shall make payments by October 1, 2000, to each eligible person who applies by August 15, 2000, or within 45 days of the application if the application is received after August 15, 2000. In no case will applications be accepted after September 30, 2000.
Subd. 3. [LIMIT.] No individual or married couple may receive total payments under this section in excess of $5,600 whether individually, through the person's pro rata ownership share of another eligible farming entity, or both.
Subd. 4. [PENALTIES.] If the commissioner of agriculture determines that claims for payments under subdivision 2 are or were excessive or were filed with fraudulent intent, the claim must be disallowed in full. If the claim has been paid, the commissioner of agriculture shall notify the commissioner of revenue of the relevant information, and the amount disallowed must be recovered by assessment and collection under Minnesota Statutes, chapters 270 and 289A. The assessment must be made within two years after a check is cashed, but if cashing a check constitutes theft under Minnesota Statutes, section 609.52, or forgery under Minnesota Statutes, section 609.631, the assessment may be made at any time. The assessment may be appealed administratively and judicially.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 6. [APPROPRIATION.]
(a) The amount necessary to fund the payments under section 5 is appropriated in fiscal year 2001 from the general fund to the commissioner of agriculture. This appropriation is available until June 30, 2001.
(b) The amount necessary to administer the agricultural assistance program under section 5 is appropriated from the general fund to the commissioner of agriculture, provided that amount shall not exceed $50,000.
EFFECTIVE DATE: This section is effective the day following final enactment.
ARTICLE 3
1999 SALES TAX REBATE
Section 1. Laws 1999, chapter 243, article 1, section 2, is amended to read:
Sec. 2. [SALES TAX REBATE.]
(a) An individual who:
(1) was eligible for a credit under Laws 1997, chapter 231, article 1, section 16, as amended by Laws 1997, First Special Session chapter 5, section 35, and Laws 1997, Third Special Session chapter 3, section 11, and Laws 1998, chapter 304, and Laws 1998, chapter 389, article 1, section 3, and who filed for or received that credit on or before June 15, 1999; or
(2) was a resident of Minnesota for any part of 1997, and filed a 1997 Minnesota income tax return on or before June 15, 1999, and had a tax liability before refundable credits on that return of at least $1 but did not file the claim for credit authorized under Laws 1997, chapter 231, article 1, section 16, as amended, and who was not allowed to be claimed as a dependent on a 1997 federal income tax return filed by another person; or
(3) had the property taxes payable on his or her homestead abated to zero under Laws 1997, chapter 231, article 2, section 64,
shall receive a sales tax rebate.
(b) The sales tax rebate for taxpayers who qualify under paragraph (a) as married filing joint or head of household must be computed according to the following schedule:
Income Sales Tax Rebate
less than $2,500 $ 358
at least $2,500 but less than $5,000 $ 469
at least $5,000 but less than $10,000 $ 502
at least $10,000 but less than $15,000 $ 549
at least $15,000 but less than $20,000 $ 604
at least $20,000 but less than $25,000 $ 641
at least $25,000 but less than $30,000 $ 690
at least $30,000 but less than $35,000 $ 762
at least $35,000 but less than $40,000 $ 820
at least $40,000 but less than $45,000 $ 874
at least $45,000 but less than $50,000 $ 921
at least $50,000 but less than $60,000 $ 969
at least $60,000 but less than $70,000 $1,071
at least $70,000 but less than $80,000 $1,162
at least $80,000 but less than $90,000 $1,276
at least $90,000 but less than $100,000 $1,417
at least $100,000 but less than $120,000 $1,535
at least $120,000 but less than $140,000 $1,682
at least $140,000 but less than $160,000 $1,818
at least $160,000 but less than $180,000 $1,946
at least $180,000 but less than $200,000 $2,067
at least $200,000 but less than $400,000 $2,644
at least $400,000 but less than $600,000 $3,479
at least $600,000 but less than $800,000 $4,175
at least $800,000 but less than $1,000,000 $4,785
$1,000,000 and over $5,000
(c) The sales tax rebate for individuals who qualify under paragraph (a) as single or married filing separately must be computed according to the following schedule:
Income Sales Tax Rebate
less than $2,500 $ 204
at least $2,500 but less than $5,000 $ 249
at least $5,000 but less than $10,000 $ 299
at least $10,000 but less than $15,000 $ 408
at least $15,000 but less than $20,000 $ 464
at least $20,000 but less than $25,000 $ 496
at least $25,000 but less than $30,000 $ 515
at least $30,000 but less than $40,000 $ 570
at least $40,000 but less than $50,000 $ 649
at least $50,000 but less than $70,000 $ 776
at least $70,000 but less than $100,000 $ 958
at least $100,000 but less than $140,000 $1,154
at least $140,000 but less than $200,000 $1,394
at least $200,000 but less than $400,000 $1,889
at least $400,000 but less than $600,000 $2,485
$600,000 and over $2,500
(d) Individuals who were not residents of Minnesota for any part of 1997 and who paid more than $10 in Minnesota sales tax on nonbusiness consumer purchases in that year qualify for a rebate under this paragraph only. Qualifying nonresidents must file a claim for rebate on a form prescribed by the commissioner before the later of June 15, 1999, or 30 days after the date of enactment of this act. The claim must include receipts showing the Minnesota sales tax paid and the date of the sale. Taxes paid on purchases allowed in the computation of federal taxable income or reimbursed by an employer are not eligible for the rebate. The commissioner shall determine the qualifying taxes paid and rebate the lesser of:
(1) 69.0 percent of that amount; or
(2) the maximum amount for which the claimant would have been eligible as determined under paragraph (b) if the taxpayer filed the 1997 federal income tax return as a married taxpayer filing jointly or head of household, or as determined under paragraph (c) for other taxpayers.
(e) "Income," for purposes of this section other than paragraph (d), is taxable income as defined in section 63 of the Internal Revenue Code of 1986, as amended through December 31, 1996, plus the sum of any additions to federal taxable income for the taxpayer under Minnesota Statutes, section 290.01, subdivision 19a, and reported on the original 1997 income tax return including subsequent adjustments to that return made within the time limits specified in paragraph (h). For an individual who was a resident of Minnesota for less than the entire year, the sales tax rebate equals the sales tax rebate calculated under paragraph (b) or (c) multiplied by the percentage determined pursuant to Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e), as calculated on the original 1997 income tax return including subsequent adjustments to that return made within the time limits specified in paragraph (h). For purposes of paragraph (d), "income" is taxable income as defined in section 63 of the Internal Revenue Code of 1986, as amended through December 31, 1996, and reported on the taxpayer's original federal tax return for the first taxable year beginning after December 31, 1996.
(f) An individual who would have been eligible for a rebate under paragraph (a), clause (1) or (2), or (d) had the individual filed a 1997 Minnesota income tax return or claim form by June 15, 1999, who files the return or claim form by June 30, 2000, is eligible for the rebate amount under paragraph (b) as adjusted by paragraph (h) if the individual is married filing joint or head of household and the rebate amount under paragraph (c) as adjusted by paragraph (h) if the individual is married filing separately or single.
(g) For a fiscal year taxpayer, the June 15, 1999, dates in paragraphs (a) through (d) are extended one month for each month in calendar year 1997 that occurred prior to the start of the individual's 1997 fiscal tax year.
(h) Before payment, the commissioner of revenue shall adjust the rebate as follows:
(1) the rebates calculated in paragraphs (b), (c), and (d) must be proportionately reduced to account for 1997 income tax returns that are filed on or after January 1, 1999, but before July 1, 1999, so that the amount of sales tax rebates payable under paragraphs (b), (c), and (d) does not exceed $1,250,000,000; and
(2) the commissioner of finance shall certify by July 15, 1999, preliminary fiscal year 1999 general fund net nondedicated revenues. The certification shall exclude the impact of any legislation enacted during the 1999 regular session. If certified net nondedicated revenues exceed the amount forecast in February 1999, up to $50,000,000 of the increase shall be added to the total amount rebated. The commissioner of revenue shall adjust all rebates proportionally to reflect any increases. The total amount of the rebate shall not exceed $1,300,000,000.
The adjustments under this paragraph are not rules subject to Minnesota Statutes, chapter 14.
(g) (i) The commissioner of revenue may begin making sales tax rebates by August 1, 1999.
Sales tax rebates not paid by October 1, 1999, bear interest at the rate specified in Minnesota Statutes, section 270.75.
Sales tax rebates paid to (1) taxpayers who file their original 1997 Minnesota income tax return after June 15,
1999, and (2) qualifying nonresidents who file a claim for rebate after June 15, 1999,
bear interest at the rate specified in Minnesota Statutes, section 270.75, beginning October 1, 2000.
(h) (j) A sales tax rebate shall not be adjusted based on changes to a 1997 income tax return that
are made by order of assessment after June 15, 1999, or made by the taxpayer that are filed with the commissioner
of revenue after June 15, 1999.
(i) (k) Individuals who filed a joint income tax return for 1997 shall receive a joint sales tax
rebate. After the sales tax rebate has been issued, but before the check has been cashed, either joint claimant may
request a separate check for one-half of the joint sales tax rebate. Notwithstanding anything in this section to the
contrary, if prior to payment, the commissioner has been notified that persons who filed a joint 1997 income tax
return are living at separate addresses, as indicated on their 1998 income tax return or otherwise, the commissioner
may issue separate checks to each person. The amount payable to each person is one-half of the total joint rebate.
If a rebate is received by the estate of a deceased individual after the probate estate has been closed, and if the
original rebate check is returned to the commissioner with a copy of the decree of descent or final account of the
estate, social security numbers, and addresses of the beneficiaries, the commissioner may issue separate checks in
proportion to their share in the residuary estate in the names of the residuary beneficiaries of the estate.
(j) (l) The sales tax rebate is a "Minnesota tax law" for purposes of Minnesota Statutes, section
270B.01, subdivision 8.
(k) (m) The sales tax rebate is "an overpayment of any tax collected by the commissioner" for
purposes of Minnesota Statutes, section 270.07, subdivision 5. For purposes of this paragraph, a joint sales tax rebate
is payable to each spouse equally.
(l) (n) If the commissioner of revenue cannot locate an individual entitled to a sales tax rebate
by July 1, 2001, or if an individual to whom a sales tax rebate was issued has not cashed the check by July 1, 2001,
the right to the sales tax rebate lapses and the check must be deposited in the general fund.
(m) (o) Individuals entitled to a sales tax rebate pursuant to paragraph (a), but who did not
receive one, and individuals who receive a sales tax rebate that was not correctly computed, must file a claim with
the commissioner before July 1, 2000, in a form prescribed by the commissioner. Taxpayers who file their
original 1997 Minnesota income tax return after June 15, 1999, and qualifying nonresidents who file a claim for
rebate after June 15, 1999, and who do not receive it or who receive a sales tax rebate that was not correctly
computed, must file a claim with the commissioner before July 1, 2001, in a form prescribed by the
commissioner. These claims must be treated as if they are a claim for refund under Minnesota Statutes, section
289A.50, subdivisions 4 and 7.
(n) (p) The sales tax rebate is a refund subject to revenue recapture under Minnesota Statutes,
chapter 270A. The commissioner of revenue shall remit the entire refund to the claimant agency, which shall, upon
the request of the spouse who does not owe the debt, refund one-half of the joint sales tax rebate to the spouse who
does not owe the debt.
(o) (q) The rebate is a reduction of fiscal year 1999 sales tax revenues. The amount necessary
to make the sales tax rebates and interest provided in this section is appropriated from the general fund to the
commissioner of revenue in fiscal year 1999 and is available until June 30, 2001.
(p) (r) If a sales tax rebate check is cashed by someone other than the payee or payees of the
check, and the commissioner of revenue determines that the check has been forged or improperly endorsed or
the commissioner determines that a rebate was overstated or erroneously issued, the commissioner may issue
an order of assessment for the amount of the check or the amount the check is overstated against the person
or persons cashing it. The assessment must be made within two years after the check is cashed, but if cashing the
check constitutes theft under Minnesota Statutes, section 609.52, or forgery under Minnesota Statutes, section
609.631, the assessment can be made at any time. The assessment may be appealed administratively and judicially.
The commissioner may take action to collect the assessment in the same manner as provided by Minnesota Statutes,
chapter 289A, for any other order of the commissioner assessing tax.
(q) (s) Notwithstanding Minnesota Statutes, sections 9.031, 16A.40, 16B.49, 16B.50, and any
other law to the contrary, the commissioner of revenue may take whatever actions the commissioner deems necessary
to pay the rebates required by this section, and may, in consultation with the commissioner of finance and the state
treasurer, contract with a private vendor or vendors to process, print, and mail the rebate checks or warrants required
under this section and receive and disburse state funds to pay those checks or warrants.
(r) (t) The commissioner may pay rebates required by this section by electronic funds transfer
to individuals who requested that their 1998 individual income tax refund be paid through electronic funds transfer.
The commissioner may make the electronic funds transfer payments to the same financial institution and into the
same account as the 1998 individual income tax refund.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 2. [APPLICATION OF LAW.]
The limitation on the total amount of rebates in Laws 1999, chapter 243, article 1, section 2, paragraph (f), does not apply to rebates issued under section 1. To the extent applicable, all other provisions of Laws 1999, chapter 243, article 1, section 2, apply to the rebates paid under section 1.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 3. [APPROPRIATION.]
The amount necessary to pay the rebates under section 1 is appropriated from the general fund to the commissioner of revenue for fiscal years 2000 and 2001.
EFFECTIVE DATE: This section is effective the day following final enactment.
ARTICLE 4
INCOME AND FRANCHISE TAXES
Section 1. Minnesota Statutes 1998, section 289A.08, is amended by adding a subdivision to read:
Subd. 16. [TAX REFUND OR RETURN PREPARERS.] (a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph (g), who prepared more than 500 Minnesota individual income tax returns for the prior calendar year must file all Minnesota individual income tax returns prepared for the current calendar year by electronic means.
(b) For tax returns prepared for the tax year beginning in 2001, the "500" in paragraph (a) is reduced to 250.
(c) For tax returns prepared for tax years beginning after December 31, 2001, the "500" in paragraph (a) is reduced to 100.
(d) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return that the taxpayer did not want the return filed by electronic means.
EFFECTIVE DATE: This section is effective for tax returns prepared for taxable years beginning after December 31, 1999.
Sec. 2. Minnesota Statutes 1998, section 289A.20, subdivision 2, is amended to read:
Subd. 2. [WITHHOLDING FROM WAGES, ENTERTAINER WITHHOLDING, WITHHOLDING FROM PAYMENTS TO OUT-OF-STATE CONTRACTORS, AND WITHHOLDING BY PARTNERSHIPS AND SMALL BUSINESS CORPORATIONS.] (a) A tax required to be deducted and withheld during the quarterly period must be paid on or before the last day of the month following the close of the quarterly period, unless an earlier time for payment is provided. A tax required to be deducted and withheld from compensation of an entertainer and from a payment to an out-of-state contractor must be paid on or before the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld by partnerships and S corporations must be paid on or before the date the return must be filed under section 289A.18, subdivision 2.
(b) An employer who, during the previous quarter, withheld more than $1,500 of tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax withheld under those sections with the commissioner within the time allowed to deposit the employer's federal withheld employment taxes under Treasury Regulation, section 31.6302-1, without regard to the safe harbor or de minimis rules in subparagraph (f) or the one-day rule in subsection (c), clause (3). Taxpayers must submit a copy of their federal notice of deposit status to the commissioner upon request by the commissioner.
(c) The commissioner may prescribe by rule other return periods or deposit requirements. In prescribing the reporting period, the commissioner may classify payors according to the amount of their tax liability and may adopt an appropriate reporting period for the class that the commissioner judges to be consistent with efficient tax collection. In no event will the duration of the reporting period be more than one year.
(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments with respect to both the tax and the amount to be deducted must be made, without interest, in the manner and at the times the commissioner prescribes. If the underpayment cannot be adjusted, the amount of the underpayment will be assessed and collected in the manner and at the times the commissioner prescribes.
(e) If the aggregate amount of the tax withheld during a fiscal year ending June 30 under section 290.92, subdivision 2a or 3, is equal to or exceeds the amounts established for remitting federal withheld taxes pursuant to the regulations promulgated under section 6302(h) of the Internal Revenue Code, the employer must remit each required deposit for wages paid in the subsequent calendar year by means of a funds transfer as defined in section
336.4A-104, paragraph (a). The funds transfer payment date, as defined in section 336.4A-401, must be on or before the date the deposit is due. If the date the deposit is due is not a funds transfer business day, as defined in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the funds transfer business day next following the date the deposit is due.
(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), clause (2), who remits withholding deposits must remit all deposits by means of a funds transfer as provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal year for all of the employers.
EFFECTIVE DATE: This section is effective for wages paid after December 31, 1999.
Sec. 3. Minnesota Statutes 1998, section 289A.26, subdivision 1, is amended to read:
Subdivision 1. [MINIMUM LIABILITY.] A corporation subject to taxation under chapter 290 (excluding section
290.92) or an entity subject to taxation under section 290.05, subdivision 3, must make payment of estimated tax
for the taxable year if its tax liability so computed can reasonably be expected to exceed $500, or in accordance with
rules prescribed by the commissioner for an affiliated group of corporations electing to file filing
one return as permitted under section 289A.08, subdivision 3.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 1998, section 289A.60, subdivision 1, is amended to read:
Subdivision 1. [PENALTY FOR FAILURE TO PAY TAX.] (a) If a tax other than a withholding or sales or use tax is not paid within the time specified for payment, a penalty must be added to the amount required to be shown as tax. The penalty is three percent of the tax not paid on or before the date specified for payment of the tax if the failure is for not more than 30 days, with an additional penalty of three percent of the amount of tax remaining unpaid during each additional 30 days or fraction of 30 days during which the failure continues, not exceeding 24 percent in the aggregate.
If an individual files a state individual income tax return and pays all of the state individual income tax with the filing of a return within six months of the date the return is due and the amount paid by the due date of the return is at least 90 percent of the amount of tax due, as shown on the return, the individual is presumed to have reasonable cause for the late payment.
(b) If a withholding or sales or use tax is not paid within the time specified for payment, a penalty must be added to the amount required to be shown as tax. The penalty is five percent of the tax not paid on or before the date specified for payment of the tax if the failure is for not more than 30 days, with an additional penalty of five percent of the amount of tax remaining unpaid during each additional 30 days or fraction of 30 days during which the failure continues, not exceeding 15 percent in the aggregate.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 5. Minnesota Statutes 1999 Supplement, section 290.01, subdivision 19b, is amended to read:
Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For individuals, estates, and trusts, there shall be subtracted from federal taxable income:
(1) interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the credit allowed under section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and transportation of each qualifying child in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, "textbooks" includes books and other instructional materials and equipment used in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. For purposes of the subtraction provided by this clause, "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue Code;
(4) contributions made in taxable years beginning after December 31, 1981, and before January 1, 1985, to a qualified governmental pension plan, an individual retirement account, simplified employee pension, or qualified plan covering a self-employed person that were included in Minnesota gross income in the taxable year for which the contributions were made but were deducted or were not included in the computation of federal adjusted gross income, less any amount allowed to be subtracted as a distribution under this subdivision or a predecessor provision in taxable years that began before January 1, 2000. This subtraction applies only for taxable years beginning after December 31, 1999, and before January 1, 2001. If an individual's subtraction under this clause exceeds the individual's taxable income, the excess may be carried forward to taxable years beginning after December 31, 2000, and before January 1, 2002;
(5) income as provided under section 290.0802;
(6) the amount of unrecovered accelerated cost recovery system deductions allowed under subdivision 19g;
(7) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;
(8) to the extent not deducted in determining federal taxable income or used to claim the long-term care
insurance credit under section 290.0672, the amount paid for health insurance of self-employed individuals as
determined under section 162(l) of the Internal Revenue Code, except that the percent limit does not apply. If the
taxpayer individual deducted insurance payments under section 213 of the Internal Revenue Code
of 1986, the subtraction under this clause must be reduced by the lesser of:
(i) the total itemized deductions allowed under section 63(d) of the Internal Revenue Code, less state, local, and foreign income taxes deductible under section 164 of the Internal Revenue Code and the standard deduction under section 63(c) of the Internal Revenue Code; or
(ii) the lesser of (A) the amount of insurance qualifying as "medical care" under section 213(d) of the Internal Revenue Code to the extent not deducted under section 162(1) of the Internal Revenue Code or excluded from income or (B) the total amount deductible for medical care under section 213(a);
(9) the exemption amount allowed under Laws 1995, chapter 255, article 3, section 2, subdivision 3;
(10) to the extent included in federal taxable income, postservice benefits for youth community service under section 124D.42 for volunteer service under United States Code, title 42, section 5011(d), as amended;
(11) to the extent not deducted in determining federal taxable income by an individual who does not itemize
deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of
charitable contributions allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue
Code over $500; and
(12) to the extent included in federal taxable income, holocaust victims' settlement payments for any injury incurred as a result of the holocaust, if received by an individual who was persecuted for racial or religious reasons by Nazi Germany or any other Axis regime or an heir of such a person; and
(13) for taxable years beginning before January 1, 2008, the amount of the federal small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code which is included in gross income under section 87 of the Internal Revenue Code.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 6. Minnesota Statutes 1998, section 290.01, subdivision 19c, is amended to read:
Subd. 19c. [CORPORATIONS; ADDITIONS TO FEDERAL TAXABLE INCOME.] For corporations, there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income, excise, or franchise taxes based on net income or related minimum taxes, including but not limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or any foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its possessions, its agencies, or its instrumentalities; the state of Minnesota or any other state, any of its political or governmental subdivisions, any of its municipalities, or any of its governmental agencies or instrumentalities; the District of Columbia; or Indian tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal Revenue Code;
(4) the amount of any net operating loss deduction taken for federal income tax purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes under sections 241 to 247 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under sections 1211 and 1212 of the Internal Revenue Code;
(8) the amount of any charitable contributions deducted for federal income tax purposes under section 170 of the Internal Revenue Code;
(9) the exempt foreign trade income of a foreign sales corporation under sections 921(a) and 291 of the Internal Revenue Code;
(10) the amount of percentage depletion deducted under sections 611 through 614 and 291 of the Internal Revenue Code;
(11) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, the amount of the amortization deduction allowed in computing federal taxable income for those facilities;
(12) the amount of any deemed dividend from a foreign operating corporation determined pursuant to section 290.17, subdivision 4, paragraph (g);
(13) the amount of any environmental tax paid under section 59(a) of the Internal Revenue Code; and
(14) the amount of a partner's pro rata share of net income which does not flow through to the partner because the partnership elected to pay the tax on the income under section 6242(a)(2) of the Internal Revenue Code.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 7. Minnesota Statutes 1998, section 290.01, subdivision 19d, is amended to read:
Subd. 19d. [CORPORATIONS; MODIFICATIONS DECREASING FEDERAL TAXABLE INCOME.] For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the federal jobs credit under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;
(4) amounts disallowed for intangible drilling costs due to differences between this chapter and the Internal Revenue Code in taxable years beginning before January 1, 1987, as follows:
(i) to the extent the disallowed costs are represented by physical property, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7, subject to the modifications contained in subdivision 19e; and
(ii) to the extent the disallowed costs are not represented by physical property, an amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 290.09, subdivision 8;
(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;
(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;
(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
(6) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;
(7) in the case of mines, oil and gas wells, other natural deposits, and timber for which percentage depletion was disallowed pursuant to subdivision 19c, clause (11), a reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be apportioned between the lessor and lessee in accordance with rules prescribed by the commissioner. In the case of property held in trust, the allowable deduction must be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the trust, or if there is no provision in the instrument, on the basis of the trust's income allocable to each;
(8) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7;
(9) the amount included in federal taxable income attributable to the credits provided in Minnesota Statutes 1986, section 273.1314, subdivision 9, or Minnesota Statutes, section 469.171, subdivision 6;
(10) amounts included in federal taxable income that are due to refunds of income, excise, or franchise taxes based on net income or related minimum taxes paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or a foreign country or possession of the United States to the extent that the taxes were added to federal taxable income under section 290.01, subdivision 19c, clause (1), in a prior taxable year;
(11) 80 percent of royalties, fees, or other like income accrued or received from a foreign operating corporation or a foreign corporation which is part of the same unitary business as the receiving corporation;
(12) income or gains from the business of mining as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
(13) the amount of handicap access expenditures in the taxable year which are not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
(14) the amount of qualified research expenses not allowed for federal income tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that the amount exceeds the amount of the credit allowed under section 290.068;
(15) the amount of salary expenses not allowed for federal income tax purposes due to claiming the Indian
employment credit under section 45A(a) of the Internal Revenue Code; and
(16) the amount of any refund of environmental taxes paid under section 59A of the Internal Revenue Code; and
(17) for taxable years beginning before January 1, 2008, the amount of the federal small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code which is included in gross income under section 87 of the Internal Revenue Code.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 8. Minnesota Statutes 1998, section 290.01, subdivision 19e, is amended to read:
Subd. 19e. [DEPRECIATION MODIFICATIONS FOR CORPORATIONS.] In the case of corporations, a modification shall be made for the accelerated cost recovery system. The allowable deduction for the accelerated cost recovery system is the same amount as provided in section 168 of the Internal Revenue Code with the following modifications. The modifications apply to taxable years beginning after December 31, 1986, and to property for which deductions under the Tax Reform Act of 1986, Public Law Number 99-514, are elected or apply. The modifications in paragraphs (a) and (c) do not apply to taxable years beginning after December 31, 2000.
(a) For property placed in service after December 31, 1980, and before January 1, 1987, 40 percent of the allowance pursuant to section 168 of the Internal Revenue Code of 1954, as amended through December 31, 1985, for 15-, 18-, or 19-year real property shall not be allowed and for all other property 20 percent shall not be allowed.
(b) For property placed in service after December 31, 1987, no modification shall be made.
(c) For property placed in service after July 31, 1986, and before January 1, 1987, for which the taxpayer elects the deduction pursuant to section 203 of the Tax Reform Act of 1986, Public Law Number 99-514, and for property placed in service after December 31, 1986, and before January 1, 1988, 15 percent of the allowance pursuant to section 168 of the Internal Revenue Code shall not be allowed.
(d) For property placed in service after December 31, 1980, and before January 1, 1987, for which the taxpayer elects to use the straight line method provided in section 168(b)(3), (f)(12), or (j)(1) or a method provided in section 168(e)(2) of the Internal Revenue Code, as amended through December 31, 1986, but excluding property for which the taxpayer elects the deduction pursuant to section 203 of the Tax Reform Act of 1986, Public Law Number 99-514, the modifications provided in paragraph (a) do not apply.
(e) For taxable years beginning before January 1, 2001, for property subject to the modifications contained in paragraphs (a) and (c) and Minnesota Statutes 1986, section 290.09, subdivision 7, clause (c), the following modification shall be made after the entire amount of the allowable deduction has been allowed for federal tax purposes for that property under the provisions of section 168 of the Internal Revenue Code. The remaining depreciable basis in those assets for Minnesota purposes, including the amount of any basis reduction to reflect the investment tax credit for federal purposes under sections 48(q) and 49(d) of the Internal Revenue Code, shall be a depreciation allowance computed using the straight line method over the following number of years:
(1) three-year property, one year;
(2) five-year and seven-year property, two years;
(3) ten-year property, five years; and
(4) all other property, seven years.
(f) For taxable years beginning after December 31, 2000, the amount of any remaining modification made under paragraph (a) or (c) or Minnesota Statutes 1986, section 290.09, subdivision 7, clause (c), not previously deducted under paragraph (e), including the amount of any basis reduction to reflect the federal investment tax credit for federal purposes under section 48(q) and 49(d) of the Internal Revenue Code, is a depreciation allowance in the first taxable year after December 31, 2000.
(g) For taxable years beginning before January 1, 2001, and for property placed in service after December 31, 1987, the remaining depreciable basis for Minnesota purposes that is attributable to the basis reduction for federal purposes to reflect the investment tax credit under sections 48(q) and 49(d) of the Internal Revenue Code, shall be allowed as a deduction in the first taxable year after the entire amount of the allowable deduction for that property under the provisions of section 168 of the Internal Revenue Code, has been allowed, except that where the straight line method provided in section 168(b)(3) is used, the deduction provided in this clause shall be allowed in the last taxable year in which an allowance for depreciation is allowed for that property.
(g) (h) For qualified timber property for which the taxpayer made an election under section 194
of the Internal Revenue Code, the remaining depreciable basis for Minnesota purposes is allowed as a deduction in
the first taxable year after the entire allowable deduction has been allowed for federal tax purposes.
(h) (i) The basis of property to which section 168 of the Internal Revenue Code applies is its basis
as provided in this chapter including the modifications provided in this subdivision and in Minnesota Statutes 1986,
section 290.09, subdivision 7, paragraph (c). The recapture tax provisions provided in sections 1245 and 1250 of
the Internal Revenue Code apply but must be calculated using the basis provided in the preceding sentence.
(i) (j) The basis of an asset acquired in an exchange of assets, including an involuntary
conversion, is the same as its federal basis under the provisions of the Internal Revenue Code, except that the
difference in basis due to the modifications in this subdivision and in Minnesota Statutes 1986, section 290.09,
subdivision 7, paragraph (c), is a deduction as provided in paragraph (e).
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 2000.
Sec. 9. Minnesota Statutes 1998, section 290.015, subdivision 1, is amended to read:
Subdivision 1. [GENERAL RULE.] (a) Except as provided in subdivision 3, a person that conducts a trade or
business that has a place of business in this state, regularly has employees or independent contractors conducting
business activities on its behalf in this state, or owns or leases real property that is located in this state or
tangible personal property located, including but not limited to mobile property, that is present in
this state as defined in section 290.191, subdivision 6, paragraph (e), is subject to the taxes imposed by this
chapter.
(b) Except as provided in subdivision 3, a person that conducts a trade or business not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade or business obtains or regularly solicits business from within this state, without regard to physical presence in this state.
(c) For purposes of paragraph (b), business from within this state includes, but is not limited to:
(1) sales of products or services of any kind or nature to customers in this state who receive the product or service in this state;
(2) sales of services which are performed from outside this state but the services are received in this state;
(3) transactions with customers in this state that involve intangible property and result in income flowing to
the person from within receipts attributed to this state as provided in section 290.191, subdivision
5 or 6;
(4) leases of tangible personal property that is located in this state as defined in section 290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and
(5) sales and leases of real property located in this state; and
(6) if a financial institution, deposits received from customers in this state.
(d) For purposes of paragraph (b), solicitation includes, but is not limited to:
(1) the distribution, by mail or otherwise, without regard to the state from which such distribution originated or in which the materials were prepared, of catalogs, periodicals, advertising flyers, or other written solicitations of business to customers in this state;
(2) display of advertisements on billboards or other outdoor advertising in this state;
(3) advertisements in newspapers published in this state;
(4) advertisements in trade journals or other periodicals, the circulation of which is primarily within this state;
(5) advertisements in a Minnesota edition of a national or regional publication or a limited regional edition of which this state is included of a broader regional or national publication which are not placed in other geographically defined editions of the same issue of the same publication;
(6) advertisements in regional or national publications in an edition which is not by its contents geographically targeted to Minnesota, but which is sold over the counter in Minnesota or by subscription to Minnesota residents;
(7) advertisements broadcast on a radio or television station located in Minnesota; or
(8) any other solicitation by telegraph, telephone, computer database, cable, optic, microwave, or other communication system.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 10. Minnesota Statutes 1998, section 290.015, subdivision 3, is amended to read:
Subd. 3. [EXCEPTIONS.] (a) A person is not subject to tax under this chapter if the person is engaged in the business of selling tangible personal property and taxation of that person under this chapter is precluded by Public Law Number 86-272, United States Code, title 15, sections 381 to 384, or would be so precluded except for the fact that the person stored tangible personal property in a state licensed facility under chapter 231.
(b) Ownership of an interest in the following types of property (including those contacts with this state reasonably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property or the income from it, the collection of income from the property, or the acquisition or liquidation of collateral relating to the property) shall not be a factor in determining whether the owner is subject to tax under this chapter:
(1) an interest in a real estate mortgage investment conduit, a real estate investment trust, a financial asset securitization investment trust, or a regulated investment company or a fund of a regulated investment company, as those terms are defined in the Internal Revenue Code;
(2) an interest in money market instruments or securities as defined in section 290.191, subdivision 6, paragraphs (c) and (d);
(3) an interest in a loan-backed, mortgage-backed, or receivable-backed security representing either: (i) ownership in a pool of promissory notes, mortgages, or receivables or certificates of interest or participation in such notes, mortgages, or receivables, or (ii) debt obligations or equity interests which provide for payments in relation to payments or reasonable projections of payments on the notes, mortgages, or receivables;
(4) an interest acquired from a person in assets described in section 290.191, subdivision 11, paragraphs (e) to (l), subject to the provisions of paragraph (c), clause (2)(A);
(5) an interest acquired from a person in the right to service, or collect income from any assets described in section 290.191, subdivision 11, paragraphs (e) to (l), subject to the provisions of paragraph (c), clause (2)(A);
(6) an interest acquired from a person in a funded or unfunded agreement to extend or guarantee credit whether conditional, mandatory, temporary, standby, secured, or otherwise, subject to the provisions of paragraph (c), clause (2)(A);
(7) an interest of a person other than an individual, estate, or trust, in any intangible, tangible, real, or personal property acquired in satisfaction, whether in whole or in part, of any asset embodying a payment obligation which is in default, whether secured or unsecured, the ownership of an interest in which would be exempt under the preceding provisions of this subdivision, provided the property is disposed of within a reasonable period of time; or
(8) amounts held in escrow or trust accounts, pursuant to and in accordance with the terms of property described in this subdivision.
(c)(1) For purposes of paragraph (b), clauses (4) to (6), an interest in the type of assets or credit agreements described is deemed to exist at the time the owner becomes legally obligated, conditionally or unconditionally, to fund, acquire, renew, extend, amend, or otherwise enter into the credit arrangement.
(2)(A) An owner has acquired an interest from a person in paragraph (b), clauses (4) to (6), assets if:
(i) the owner at the time of the acquisition of the asset does not own, directly or indirectly, 15 percent or more of the outstanding stock or in the case of a partnership 15 percent or more of the capital or profit interests of the person from whom it acquired the asset;
(ii) the person from whom the owner acquired the asset regularly sells, assigns, or transfers interests in paragraph (b), clauses (4) to (6), assets during the 12 calendar months immediately preceding the month of acquisition to three or more persons; and
(iii) the person from whom the owner acquired the asset does not sell, assign, or transfer 75 percent or more of its paragraph (b), clauses (4) to (6), assets during the 12 calendar months immediately preceding the month of acquisition to the owner.
For purposes of determining indirect ownership under item (i), the owner is deemed to own all stock, capital, or profit interests owned by another person if the owner directly owns 15 percent or more of the stock, capital, or profit interests in the other person. The owner is also deemed to own through any intermediary parties all stock, capital, and profit interests directly owned by a person to the extent there exists a 15 percent or more chain of ownership of stock, capital, or profit interests between the owner, intermediary parties and the person.
(B) If the owner of the asset is a member of the a unitary group business,
paragraph (b), clauses (4) to (8), do not apply to an interest acquired from another member of the unitary
group business. If the interest in the asset was originally acquired from a nonunitary member and
at that time qualified as a section 290.015, subdivision 3, paragraph (b), asset, the foregoing limitation does not
apply.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 11. Minnesota Statutes 1998, section 290.015, subdivision 4, is amended to read:
Subd. 4. [LIMITATIONS.] (a) This section does not subject a trade or business to any regulation, including any tax, of any local unit of government or subdivision of this state if the trade or business does not own or lease tangible or real property located within this state and has no employees or independent contractors present in this state to assist in the carrying on of the business.
(b) The purchase of tangible personal property or intangible property or services by a person that conducts a trade or business with the principal place of business outside of Minnesota, referred to as the "non-Minnesota person", from a person within Minnesota shall not be taken into account in determining whether the non-Minnesota person is subject to the taxes imposed by this chapter, except for services involving either the direct solicitation of Minnesota customers or relationships with Minnesota customers after sales are made. This paragraph is subject to the limitations contained in subdivision 3, paragraph (b), clauses (4) to (6).
(c) No Contact with any Minnesota financial institution by any financial institution with its principal
place of business outside Minnesota with respect to transactions described in subdivision 3, or with respect to
deposits received from or by a Minnesota financial institution, shall not be taken into account in
determining whether such a financial institution is subject to the taxes imposed by this chapter. The fact of
Participation by a Minnesota financial institution in a transaction which also involves a borrower and a financial
institution that conducts a trade or business with its principal place of business outside of Minnesota shall not be a
factor in determining whether such financial institution is subject to the taxes imposed by this chapter. This
paragraph does not apply to transactions between or among members of the same unitary group
business.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 12. Minnesota Statutes 1999 Supplement, section 290.06, subdivision 2c, is amended to read:
Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, AND TRUSTS.] (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates:
(1) On the first $25,220 $25,680, 5.5 5.35 percent;
(2) On all over $25,220 $25,680, but not over $100,200 $102,030, 7.25
7.05 percent;
(3) On all over $100,200 $102,030, 8 7.85 percent.
Married individuals filing separate returns, estates, and trusts must compute their income tax by applying the above rates to their taxable income, except that the income brackets will be one-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarried individuals must be computed by applying to taxable net income the following schedule of rates:
(1) On the first $17,250 $17,570, 5.5 5.35 percent;
(2) On all over $17,250 $17,570, but not over $56,680 $57,710, 7.25
7.05 percent;
(3) On all over $56,680 $57,710, 8 7.85 percent.
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code must be computed by applying to taxable net income the following schedule of rates:
(1) On the first $21,240 $21,630, 5.5 5.35 percent;
(2) On all over $21,240 $21,630, but not over $85,350 $86,910, 7.25
7.05 percent;
(3) On all over $85,350 $86,910, 8 7.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax of any individual taxpayer whose taxable net income for the taxable year is less than an amount determined by the commissioner must be computed in accordance with tables prepared and issued by the commissioner of revenue based on income brackets of not more than $100. The amount of tax for each bracket shall be computed at the rates set forth in this subdivision, provided that the commissioner may disregard a fractional part of a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the individual's Minnesota income tax as provided in this subdivision. After the application of the nonrefundable credits provided in this chapter, the tax liability must then be multiplied by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as defined in section 62 of the Internal Revenue Code and increased by the additions required under section 290.01, subdivision 19a, clauses (1) and (6), after applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in section 290.01, subdivision 19a, clauses (1) and (6), and reduced by the amounts specified in section 290.01, subdivision 19b, clause (1).
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 13. Minnesota Statutes 1999 Supplement, section 290.06, subdivision 2d, is amended to read:
Subd. 2d. [INFLATION ADJUSTMENT OF BRACKETS.] (a) For taxable years beginning after
December 31, 1999 2000, the minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage determined under
paragraph (b). For the purpose of making the adjustment as provided in this subdivision all of the rate brackets
provided in subdivision 2c shall be the rate brackets as they existed for taxable years beginning after December 31,
1998 1999, and before January 1, 2000 2001. The rate applicable to any rate
bracket must not be changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes in the
rate brackets. The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
$5, it must be rounded up to the nearest $10 amount.
(b) The commissioner shall adjust the rate brackets and by the percentage determined pursuant to the provisions
of section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "1998 1999"
shall be substituted for the word "1992." For 2000 2001, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 1998 1999, to the 12 months ending
on August 31, 1999 2000, and in each subsequent year, from the 12 months ending on August 31,
1998 1999, to the 12 months ending on August 31 of the year preceding the taxable year. The
determination of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be
subject to the Administrative Procedure Act contained in chapter 14.
No later than December 15 of each year, the commissioner shall announce the specific percentage that will be used to adjust the tax rate brackets.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 14. Minnesota Statutes 1998, section 290.06, subdivision 22, is amended to read:
Subd. 22. [CREDIT FOR TAXES PAID TO ANOTHER STATE.] (a) A taxpayer who is liable for taxes on or measured by net income to another state or province or territory of Canada, as provided in paragraphs (b) through (f), upon income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state or province or territory of Canada if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who is a resident of this state pursuant to section 290.01, subdivision 7, clause (2), and who is subject to income tax as a resident in the state of the individual's domicile is not allowed this credit unless the state of domicile does not allow a similar credit.
(b) For an individual, estate, or trust, the credit is determined by multiplying the tax payable under this chapter by the ratio derived by dividing the income subject to tax in the other state or province or territory of Canada that is also subject to tax in Minnesota while a resident of Minnesota by the taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue Code, modified by the addition required by section 290.01, subdivision 19a, clause (1), and the subtraction allowed by section 290.01, subdivision 19b, clause (1), to the extent the income is allocated or assigned to Minnesota under sections 290.081 and 290.17.
(c) If the taxpayer is an athletic team that apportions all of its income under section 290.17, subdivision 5,
paragraph (c), the credit is determined by multiplying the tax payable under this chapter by the ratio derived
from dividing the total net income subject to tax in the other state or province or territory of Canada by the taxpayer's
Minnesota taxable income.
(d) The credit determined under paragraph (b) or (c) shall not exceed the amount of tax so paid to the other state or province or territory of Canada on the gross income earned within the other state or province or territory of Canada subject to tax under this chapter, nor shall the allowance of the credit reduce the taxes paid under this chapter to an amount less than what would be assessed if such income amount was excluded from taxable net income.
(e) In the case of the tax assessed on a lump sum distribution under section 290.032, the credit allowed under paragraph (a) is the tax assessed by the other state or province or territory of Canada on the lump sum distribution that is also subject to tax under section 290.032, and shall not exceed the tax assessed under section 290.032. To the extent the total lump sum distribution defined in section 290.032, subdivision 1, includes lump sum distributions received in prior years or is all or in part an annuity contract, the reduction to the tax on the lump sum distribution allowed under section 290.032, subdivision 2, includes tax paid to another state that is properly apportioned to that distribution.
(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax in such other state or province or territory of Canada on that same income after the Minnesota statute of limitations has expired, the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any statute of limitations to the contrary. The claim for the credit must be submitted within one year from the date the taxes were paid to the other state or province or territory of Canada. The taxpayer must submit sufficient proof to show entitlement to a credit.
(g) For the purposes of this subdivision, a resident shareholder of a corporation treated as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to another state. For the purposes of the preceding sentence, the term "net income tax" means any tax imposed on or measured by a corporation's net income.
(h) For the purposes of this subdivision, a resident partner of an entity taxed as a partnership under the Internal Revenue Code must be considered to have paid a tax imposed on the partner in an amount equal to the partner's pro rata share of any net income tax paid by the partnership to another state. For purposes of the preceding sentence, the term "net income" tax means any tax imposed on or measured by a partnership's net income.
(i) For the purposes of this subdivision, "another state" includes the District of Columbia, but does not include Puerto Rico or the several territories organized by Congress.
(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state by state basis.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 15. Minnesota Statutes 1998, section 290.06, is amended by adding a subdivision to read:
Subd. 22a. [NONRESIDENT'S CREDIT FOR TAXES PAID TO STATE OF DOMICILE.] (a) Notwithstanding subdivision 22, a nonresident who is subject to tax in this state on the gain on the sale of a partnership interest, which is allocable to this state under section 290.17, subdivision 2, paragraph (c), is allowed a credit for the tax paid to the state of the individual's domicile upon the gain in the taxable year or a subsequent taxable year. This credit is only allowed if the state of domicile does not allow a credit for the tax paid to Minnesota on the gain.
(b) For purposes of this subdivision, the credit equals the tax paid to the state of domicile multiplied by the ratio derived by dividing the amount of gain on the sale of the partnership interest subject to tax in the other state that is also subject to tax in Minnesota by the taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue Code. The credit allowed may not reduce the taxes paid under this chapter to an amount less than the tax that would apply if the gain were excluded from taxable net income.
(c) If a nonresident taxpayer reported the gain to Minnesota and is assessed tax in the state of domicile on that same income after the Minnesota statute of limitations has expired, the taxpayer is allowed a credit for that year, notwithstanding any statute of limitations to the contrary. The claim for the credit must be submitted within one year from the date the taxes were paid to the state of domicile and the taxpayer must submit sufficient proof to show entitlement to a credit.
(d) For the purposes of this subdivision, "another state" includes the District of Columbia, but does not include Puerto Rico or the several territories organized by Congress.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 16. Minnesota Statutes 1998, section 290.06, is amended by adding a subdivision to read:
Subd. 28. [CREDIT FOR TRANSIT PASSES.] A taxpayer may take a credit against the tax due under this chapter equal to 30 percent of the expense incurred by the taxpayer to provide transit passes, for use in Minnesota, to employees of the taxpayer. As used in this subdivision, "transit pass" has the meaning given in section 132(f)(5)(A) of the Internal Revenue Code. If the taxpayer purchases the transit passes from the transit system operator, and resells them to the employees, the credit is based on the amount of the difference between the price paid for the passes by the employer and the amount charged to employees.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 17. Minnesota Statutes 1999 Supplement, section 290.0671, subdivision 1, is amended to read:
Subdivision 1. [CREDIT ALLOWED.] (a) An individual is allowed a credit against the tax imposed by this chapter equal to a percentage of earned income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
(b) For individuals with no qualifying children, the credit equals 1.1475 1.9125 percent of the
first $4,460 of earned income. The credit is reduced by 1.1475 1.9125 percent of earned income
or modified adjusted gross income, whichever is greater, in excess of $5,570, but in no case is the credit less than
zero.
(c) For individuals with one qualifying child, the credit equals 7.45 8.5 percent of the first $6,680
of earned income and 8.5 percent of earned income over $11,650 but less than $12,990. The credit is reduced by
5.13 5.73 percent of earned income or modified adjusted gross income, whichever is greater, in
excess of $14,560, but in no case is the credit less than zero.
(d) For individuals with two or more qualifying children, the credit equals 8.8 ten percent of the
first $9,390 of earned income and 20 percent of earned income over $14,350 but less than $16,230. The credit is
reduced by 9.38 10.3 percent of earned income or modified adjusted gross income, whichever is
greater, in excess of $17,280, but in no case is the credit less than zero.
(e) For a nonresident or part-year resident, the credit must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
(f) For a person who was a resident for the entire tax year and has earned income not subject to tax under this chapter, the credit must be allocated based on the ratio of federal adjusted gross income reduced by the earned income not subject to tax under this chapter over federal adjusted gross income.
(g) The commissioner shall construct tables showing the amount of the credit at various income levels and make them available to taxpayers. The tables shall follow the schedule contained in this subdivision, except that the commissioner may graduate the transition between income brackets.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999, and is not contingent on the enactment of sections 18 and 19.
Sec. 18. Minnesota Statutes 1998, section 290.0671, subdivision 6, is amended to read:
Subd. 6. [APPROPRIATION.] An amount sufficient to pay the refunds required by this section is appropriated to the commissioner from the general fund. This amount includes any amounts appropriated to the commissioner of human services from the federal Temporary Assistance for Needy Families (TANF) block grant funds for transfer to the commissioner of revenue.
Sec. 19. Minnesota Statutes 1998, section 290.0671, is amended by adding a subdivision to read:
Subd. 6a. [TANF APPROPRIATION FOR WORKING FAMILY CREDIT EXPANSION.] (a) On an annual basis the commissioner of revenue, with the assistance of the commissioner of human services, shall calculate the value of the refundable portion of the Minnesota Working Family Credit provided under this section that qualifies for payment with funds from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this total amount, the commissioner of revenue shall estimate the portion entailed by the expansion of the credit rates for individuals with qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section 12.
(b) An amount sufficient to pay the refunds entailed by the expansion of the credit rates for individuals with qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section 12, as estimated in paragraph (a), is appropriated to the commissioner of human services from the federal Temporary Assistance for Needy Families (TANF) block grant funds, for transfer to the commissioner of revenue for deposit in the general fund.
Sec. 20. Minnesota Statutes 1998, section 290.0672, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) For purposes of this section, the following terms have the meanings given.
(b) "Long-term care insurance" means a policy that:
(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding the 7.5 percent income test; or meets the requirements given in section 62A.46; or provides similar coverage issued under the laws of another jurisdiction; and
(2) does not have has a lifetime long-term care benefit limit of not less than $100,000;
and
(3) includes inflation protection that meets or exceeds has been offered in compliance with the
inflation protection requirements of the long-term care insurance model regulation cited under section
7702B(g)(2)(A)(i)(x) of the Internal Revenue Code section 62S.23.
(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) long-term care insurance premiums that qualify as deductions under section 213 of the Internal Revenue Code; and (2) the total amount deductible for medical care under section 213 of the Internal Revenue Code.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 21. Minnesota Statutes 1998, section 290.0672, subdivision 2, is amended to read:
Subd. 2. [CREDIT.] A taxpayer is allowed a credit against the tax imposed by this chapter for long-term care
insurance policy premiums paid during the tax year. The credit for each policy equals the lesser of (1) 25
percent of premiums paid to the extent not deducted in determining federal taxable income; or (2) $100.
A taxpayer may claim a credit for only one policy for each qualified beneficiary. Only one credit may be claimed
by any taxpayer for each policy. A maximum of $100 applies to each qualified beneficiary. The
maximum total credit allowed per year is $200 for married couples filing joint returns and $100 for all other filers.
For a nonresident or part-year resident, the credit determined under this section must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 22. Minnesota Statutes 1999 Supplement, section 290.0675, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) For purposes of this section the following terms have the meanings given.
(b) "Earned income" means the sum of the following:
(1) earned income as defined in section 32(c)(2) of the Internal Revenue Code;
(2) to the extent included in the Minnesota taxable income, income received from a retirement pension, profit-sharing, stock bonus, or annuity plan; and
(3) to the extent included in Minnesota taxable income, social security benefits as defined in section 86(d)(1) of the Internal Revenue Code.
(c) "Taxable income" means net income as defined in section 290.01, subdivision 19.
(d) "Earned income of lesser-earning spouse" means the earned income of the spouse with the lesser amount of earned income as defined in paragraph (b) for the taxable year.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 23. Minnesota Statutes 1999 Supplement, section 290.0675, subdivision 2, is amended to read:
Subd. 2. [CREDIT ALLOWED.] A married couple filing a joint return is allowed a credit against the tax imposed under section 290.06.
The minimum taxable income for the married couple to be eligible for the credit is $25,000
$25,680, and the minimum earned income in order for the couple to be eligible for the credit is
$14,000 $14,250 for each spouse.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 24. Minnesota Statutes 1999 Supplement, section 290.0675, subdivision 3, is amended to read:
Subd. 3. [CREDIT AMOUNT.] The credit amount is as shown in the table in this subdivision, based on the couple's taxable income for the tax year and on the earned income of the lesser-earning spouse.
Credit For Credit For
Earned Income of Taxable Income Taxable Income
Lesser Earning Spouse $25,000-$99,999 $100,000-over
$14,000 - $14,999 $9 $0
$15,000 - $15,999 $27 $0
$16,000 - $16,999 $44 $0
$17,000 - $17,999 $62 $0
$18,000 - $18,999 $79 $0
$19,000 - $19,999 $97 $0
$20,000 - $20,999 $114 $0
$21,000 - $21,999 $132 $0
$22,000 - $22,999 $149 $0
$23,000 - $23,999 $162 $0
$24,000 - $24,999 $162 $0
$25,000 - $25,999 $162 $0
$26,000 - $26,999 $162 $0
$27,000 - $27,999 $162 $0
$29,000 - $29,999 $162 $16
$30,000 - $30,999 $162 $24
$31,000 - $31,999 $162 $31
$32,000 - $32,999 $162 $39
$33,000 - $33,999 $162 $46
$34,000 - $34,999 $162 $54
$35,000 - $35,999 $162 $61
$36,000 - $36,999 $162 $69
$37,000 - $37,999 $162 $76
$38,000 - $38,999 $162 $84
$39,000 - $39,999 $162 $91
$40,000 - $40,999 $162 $99
$41,000 - $41,999 $162 $106
$42,000 - $42,999 $162 $114
$43,000 - $43,999 $162 $121
$44,000 - $44,999 $162 $129
$45,000 - $45,999 $162 $136
$46,000 - $46,999 $162 $144
$47,000 - $47,999 $162 $151
$48,000 - $48,999 $162 $159
$49,000 - $49,999 $162 $166
$50,000 - $50,999 $162 $174
$51,000 - $51,999 $162 $181
$52,000 - $52,999 $162 $189
$53,000 - $53,999 $162 $196
$54,000 - $54,999 $162 $204
$55,000 - $55,999 $162 $211
$56,000 - $56,999 $162 $219
$57,000 - $57,999 $162 $226
$58,000 - $58,999 $162 $234
$59,000 - $59,999 $162 $241
$60,000 - $60,999 $162 $249
$61,000 - $61,999 $162 $256
$62,000 and over $162 $261
Credit For Credit For
Earned Income of Taxable Income Taxable Income
Lesser Earning Spouse $25,680-$102,029 $102,030-over
$14,250 - $15,249 $7 $0
$15,250 - $16,249 $24 $0
$16,250 - $17,249 $41 $0
$17,250 - $18,249 $58 $0
$18,250 - $19,249 $75 $0
$19,250 - $20,249 $92 $0
$20,250 - $21,249 $109 $0
$21,250 - $22,249 $126 $0
$22,250 - $23,249 $143 $0
$23,250 - $24,249 $160 $0
$24,250 - $25,249 $161 $0
$25,250 - $26,249 $161 $0
$26,250 - $27,249 $161 $0
$27,250 - $28,249 $161 $0
$29,250 - $30,249 $161 $0
$30,250 - $31,249 $161 $0
$31,250 - $32,249 $161 $6
$32,250 - $33,249 $161 $14
$33,250 - $34,249 $161 $22
$34,250 - $35,249 $161 $30
$35,250 - $36,249 $161 $38
$36,250 - $37,249 $161 $46
$37,250 - $38,249 $161 $54
$38,250 - $39,249 $161 $62
$39,250 - $40,249 $161 $70
$40,250 - $41,249 $161 $78
$41,250 - $42,249 $161 $86
$42,250 - $43,249 $161 $94
$43,250 - $44,249 $161 $102
$44,250 - $45,249 $161 $110
$45,250 - $46,249 $161 $118
$46,250 - $47,249 $161 $126
$47,250 - $48,249 $161 $134
$48,250 - $49,249 $161 $142
$49,250 - $50,249 $161 $150
$50,250 - $51,249 $161 $158
$51,250 - $52,249 $161 $166
$52,250 - $53,249 $161 $174
$53,250 - $54,249 $161 $182
$54,250 - $55,249 $161 $190
$55,250 - $56,249 $161 $198
$56,250 - $57,249 $161 $206
$57,250 - $58,249 $161 $214
$58,250 - $59,249 $161 $222
$59,250 - $60,249 $161 $230
$60,250 - $61,249 $161 $238
$61,250 - $62,249 $161 $246
$62,250 - $63,249 $161 $254
$63,250 - $64,249 $161 $262
$64,250 and over $161 $268
For taxable years beginning after December 31, 2000, the commissioner shall update the table as necessary to provide a credit that reflects the relationship between the marginal tax rates imposed under section 290.06, subdivision 2c.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 25. Minnesota Statutes 1999 Supplement, section 290.091, subdivision 1, is amended to read:
Subdivision 1. [IMPOSITION OF TAX.] In addition to all other taxes imposed by this chapter a tax is imposed on individuals, estates, and trusts equal to the excess (if any) of
(a) an amount equal to 6.5 6.4 percent of alternative minimum taxable income after subtracting
the exemption amount, over
(b) the regular tax for the taxable year.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 26. Minnesota Statutes 1999 Supplement, section 290.091, subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by this section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of the following for the taxable year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section 55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum taxable income, but excluding:
(i) the Minnesota charitable contribution deduction;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction;
(iv) the impairment-related work expenses of a disabled person; and
(v) holocaust victims' settlement payments to the extent allowed under section 290.01, subdivision 19b;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), to the extent not included in federal alternative minimum taxable income, the excess of the deduction for depletion allowable under section 611 of the Internal Revenue Code for the taxable year over the adjusted basis of the property at the end of the taxable year (determined without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue Code determined without regard to subparagraph (E); and
(5) to the extent not included in federal alternative minimum taxable income, the amount of interest income as provided by section 290.01, subdivision 19a, clause (1);
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
(2) an overpayment of state income tax as provided by section 290.01, subdivision 19b, clause (2), to the extent included in federal alternative minimum taxable income; and
(3) the amount of investment interest paid or accrued within the taxable year on indebtedness to the extent that the amount does not exceed net investment income, as defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted in computing federal adjusted gross income; and
(4) amounts subtracted from federal taxable income as provided by section 290.01, subdivision 19b, clauses (4) and (6).
In the case of an estate or trust, alternative minimum taxable income must be computed as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of the Internal Revenue Code.
(c) "Tentative minimum tax" equals 6.5 6.4 percent of alternative minimum taxable income after
subtracting the exemption amount determined under subdivision 3.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed under this chapter.
(e) "Net minimum tax" means the minimum tax imposed by this section.
(f) "Minnesota charitable contribution deduction" means a charitable contribution deduction under section 170 of the Internal Revenue Code to or for the use of an entity described in section 290.21, subdivision 3, clauses (a) to (e). When the federal deduction for charitable contributions is limited under section 170(b) of the Internal Revenue Code, the allowable contributions in the year of contribution are deemed to be first contributions to entities described in section 290.21, subdivision 3, clauses (a) to (e).
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 27. Minnesota Statutes 1999 Supplement, section 290.091, subdivision 6, is amended to read:
Subd. 6. [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates equal to the minimum tax credit for the taxable year. The minimum tax credit equals the adjusted net minimum tax for taxable years beginning after December 31, 1988, reduced by the minimum tax credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for the taxable year of
(1) the regular tax, over
(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
(b) The adjusted net minimum tax for a taxable year equals the lesser of the net minimum tax or the excess (if any) of
(1) the tentative minimum tax, over
(2) 6.5 6.4 percent of the sum of
(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
(ii) interest income as defined in section 290.01, subdivision 19a, clause (1),
(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the Internal Revenue Code, to the extent not included under clause (ii),
(iv) depletion as defined in section 57(a)(1), determined without regard to the last sentence of paragraph (1), of the Internal Revenue Code, less
(v) the deductions allowed in computing alternative minimum taxable income provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses (1), (2), and (3) of the second series of clauses, and
(vi) the exemption amount determined under subdivision 3.
In the case of an individual who is not a Minnesota resident for the entire year, adjusted net minimum tax must be multiplied by the fraction defined in section 290.06, subdivision 2c, paragraph (e). In the case of a trust or estate, adjusted net minimum tax must be multiplied by the fraction defined under subdivision 4, paragraph (b).
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 1999.
Sec. 28. Minnesota Statutes 1998, section 290.17, subdivision 2, is amended to read:
Subd. 2. [INCOME NOT DERIVED FROM CONDUCT OF A TRADE OR BUSINESS.] The income of a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or business must be assigned in accordance with paragraphs (a) to (f):
(a)(1) Subject to paragraphs (a)(2) and, (a)(3), and (a)(4), income from labor or
personal or professional services wages as defined in section 3401(a) and (f) of the Internal Revenue
Code is assigned to this state if, and to the extent that, the labor or services are work of the
employee is performed within it; all other income from such sources is treated as income from sources without
this state.
Severance pay shall be considered income from labor or personal or professional services.
(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete or entertainer, income from compensation for labor or personal services performed within this state shall be determined in the following manner:
(i) The amount of income to be assigned to Minnesota for an individual who is a nonresident salaried athletic team employee shall be determined by using a fraction in which the denominator contains the total number of days in which the individual is under a duty to perform for the employer, and the numerator is the total number of those days spent in Minnesota. For purposes of this paragraph, off-season training activities, unless conducted at the team's facilities as part of a team imposed program, are not included in the total number of duty days. Bonuses earned as a result of play during the regular season or for participation in championship, play-off, or all-star games must be allocated under the formula. Signing bonuses are not subject to allocation under the formula if they are not conditional on playing any games for the team, are payable separately from any other compensation, and are nonrefundable; and
(ii) The amount of income to be assigned to Minnesota for an individual who is a nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's athletic or entertainment performance in Minnesota shall be determined by assigning to this state all income from performances or athletic contests in this state.
(3) For purposes of this section, amounts received by a nonresident as "retirement income" as defined in section
(b)(1) of the State Income Taxation of Pension Income Act, Public Law Number 104-95, are not considered income
derived from carrying on a trade or business or from performing personal or professional services wages
or other compensation for work an employee performed in Minnesota, and are not taxable under this chapter.
(4) Wages, otherwise assigned to this state under clause (1) and not qualifying under clause (3), are not taxable under this chapter if the following conditions are met:
(i) The recipient was not a resident of this state for any part of the taxable year in which the wages were received; and
(ii) The wages are for work performed while the recipient was a resident of this state.
(b) Income or gains from tangible property located in this state that is not employed in the business of the recipient of the income or gains must be assigned to this state.
(c) Income or gains from intangible personal property not employed in the business of the recipient of the income or gains must be assigned to this state if the recipient of the income or gains is a resident of this state or is a resident trust or estate.
Gain on the sale of a partnership interest is allocable to this state in the ratio of the original cost of partnership tangible property in this state to the original cost of partnership tangible property everywhere, determined at the time of the sale. If more than 50 percent of the value of the partnership's assets consists of intangibles, gain or loss from
the sale of the partnership interest is allocated to this state in accordance with the sales factor of the partnership for its first full tax period immediately preceding the tax period of the partnership during which the partnership interest was sold.
Gain on the sale of goodwill or income from a covenant not to compete that is connected with a business operating all or partially in Minnesota is allocated to this state to the extent that the income from the business in the year preceding the year of sale was assignable to Minnesota under subdivision 3.
When an employer pays an employee for a covenant not to compete, the income allocated to this state is in the ratio of the employee's service in Minnesota in the calendar year preceding leaving the employment of the employer over the total services performed by the employee for the employer in that year.
(d) Income from winnings on Minnesota pari-mutuel betting tickets, the Minnesota state lottery, and lawful gambling as defined in section 349.12, subdivision 24, conducted within the boundaries of the state of Minnesota shall be assigned to this state.
(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
(f) For the purposes of this section, working as an employee shall not be considered to be conducting a trade or business.
EFFECTIVE DATE: This section is effective for wages received after the day following final enactment, except that to the extent this section impacts an employer's requirement to withhold Minnesota tax under section 290.92, subdivision 41, the requirement to withhold is effective for wages paid after December 31, 2000.
Sec. 29. Minnesota Statutes 1998, section 290.92, subdivision 3, is amended to read:
Subd. 3. [WITHHOLDING, IRREGULAR PERIOD.] If payment of wages is made to an employee by an employer
(a) With respect to a payroll period or other period, any part of which is included in a payroll period or other period with respect to which wages are also paid to such employees by such employer, or
(b) Without regard to any payroll period or other period, but on or prior to the expiration of a payroll period or other period with respect to which wages are also paid to such employee by such employer, or
(c) With respect to a period beginning in one and ending in another calendar year, or
(d) Through an agent, fiduciary, or other person who also has the control, receipt, custody, or disposal of or pays, the wages payable by another employer to such employee.
The manner of withholding and the amount to be deducted and withheld under subdivision 2a shall be determined in accordance with rules prescribed by the commissioner under which the withholding exemption allowed to the employee in any calendar year shall approximate the withholding exemption allowable with respect to an annual payroll period, except that if supplemental wages are not paid concurrent with a payroll period the employer shall withhold tax on the supplemental payment at the rate of 6.25 percent as if no exemption had been claimed.
EFFECTIVE DATE: This section is effective for wages paid after December 31, 2000.
Sec. 30. Minnesota Statutes 1998, section 290.92, subdivision 19, is amended to read:
Subd. 19. [EMPLOYEES INCURRING NO INCOME TAX LIABILITY.] (a) Notwithstanding any other
provision of this section, except the provisions of subdivision 5a, an employer shall is not be
required to deduct and withhold any tax under this chapter upon a payment of from wages
paid to an employee if there is in effect with respect to such payment:
(1) the employee furnished the employer with a withholding exemption certificate, in such form and
containing such other information as the commissioner may prescribe, furnished to the employer by the employee
certifying that:
(i) certifies the employee (a) incurred no liability for income tax imposed under this chapter for
the employee's preceding taxable year, and;
(b) (ii) certifies the employee anticipates incurring no liability for income tax imposed under this
chapter for the current taxable year; and
(iii) is in a form and contains any other information prescribed by the commissioner; or
(2)(i) the employee is not a resident of Minnesota when the wages were paid; and
(ii) the employer reasonably expects that the employer will not pay the employee enough wages assignable to Minnesota under section 290.17, subdivision 2, clause (a)(1), to meet the nonresident requirement to file a Minnesota individual income tax return for the taxable year under section 289A.08, subdivision 1, paragraph (a).
(b) The commissioner shall by rule provide for the coordination of the provisions of this subdivision with the provisions of subdivision 7.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 31. Minnesota Statutes 1998, section 290.92, subdivision 28, is amended to read:
Subd. 28. [PAYMENTS TO HORSERACING LICENSE HOLDERS.] Effective with payments made after April
1, 1988, any holder of a license issued by the Minnesota racing commission who makes a payment for personal or
professional services to a holder of a class C license issued by the commission, except an amount paid as a purse,
shall deduct from the payment and withhold seven 6.25 percent of the amount as Minnesota
withholding tax when the amount paid to that individual by the same person during the calendar year exceeds $600.
For purposes of the provisions of this section, a payment to any person which is subject to withholding under this
subdivision must be treated as if the payment was a wage paid by an employer to an employee. Every individual who
is to receive a payment which is subject to withholding under this subdivision shall furnish the license holder with
a statement, made under the penalties of perjury, containing the name, address, and social security account number
of the person receiving the payment. No withholding is required if the individual presents a signed certificate from
the individual's employer which states that the individual is an employee of that employer. A nonresident individual
who holds a class C license must be treated as an athlete for purposes of applying the provisions of sections 290.17,
subdivision 2(1)(b)(ii) and 290.92, subdivision 4a.
EFFECTIVE DATE: This section applies to payments made after the date of final enactment.
Sec. 32. Minnesota Statutes 1998, section 290.92, subdivision 29, is amended to read:
Subd. 29. [LOTTERY PRIZES.] Eight 7.25 percent of the payment of Minnesota state lottery
winnings which are subject to withholding must be withheld as Minnesota withholding tax. For purposes of this
subdivision, the term "winnings which are subject to withholding" has the meaning given in section 3402(q)(3) of
the Internal Revenue Code. For purposes of the provisions of this section, a payment to any person of winnings
which are subject to withholding must be treated as if the payment was a wage paid by an employer to an employee.
Every individual who is to receive a payment of winnings which are subject to withholding shall furnish the state
lottery with a statement, made under the penalties of perjury, containing the name, address, and social security
account number of the person receiving the payment. The Minnesota state lottery is liable for the payment of the
tax required to be withheld under this subdivision but is not liable to any person for the amount of the payment.
EFFECTIVE DATE: This section applies to winnings paid after the date of final enactment.
Sec. 33. Minnesota Statutes 1998, section 469.1734, subdivision 4, is amended to read:
Subd. 4. [INCOME TAX.] (a) Upon application by the qualifying business to the city, and approval of the city,
a qualifying business shall receive a credit against taxes imposed under chapter 290, other than the tax imposed
under section 290.92, based on the taxable net income of the qualified business attributable to the border city, but
outside the border city development zone, multiplied by 9.8 percent in the case of a taxpayer under section 290.02,
and 8.5 7.85 percent in the case of a taxpayer taxable under section 290.06, subdivision 2c. The
attributable net income of a qualified business in the border city is determined by multiplying the taxable net income
of the business entity, determined as if the business were a C corporation, by a fraction:
(1) the numerator of which is:
(i) the ratio of the taxpayer's property factor under section 290.191 located in the border city, but outside of the border city development zone, for the taxable year over the property factor numerator determined under section 290.191, plus
(ii) the ratio of the taxpayer's payroll factor under section 290.191 located in the border city, but outside of the border city development zone, for the taxable year over the payroll factor numerator determined under section 290.191; and
(2) the denominator of which is two.
(b) The credit under this subdivision applies after any credit allowed under subdivision 5.
(c) After any notice period required by subdivision 7, the city council must determine whether granting the credit is in the best interest of the city, and if it so determines, must approve the granting of the credit and determine its amount.
(d) The credit under this subdivision may not exceed the amount of the tax credit certificates received by the taxpayer from the city, less any tax credit certificates used under section 469.1732, subdivision 2, and subdivisions 5 and 6.
(e) No taxpayer may receive the credit under this subdivision for more than five taxable years.
EFFECTIVE DATE: This section is effective for taxable years beginning after December 31, 2000.
Sec. 34. [TAX INFORMATION SAMPLE DATA STUDY.]
(a) One of the goals of a reengineered income tax system is to reduce the administrative burden for both taxpayers and tax administrators. In order to reduce the cost of handling paper returns and to explore electronic options for taxpayer filing of tax data, the department of revenue will explore eliminating the requirement of Minnesota Statutes, section 289A.08, subdivision 11, that the federal return be attached in filing a Minnesota individual income tax return. This federal return information is used for the purposes of ensuring the accurate calculation of individuals' Minnesota income tax liabilities and for the purposes of preparing the microdata samples under Minnesota Statutes, section 270.0681.
(b) To ensure the continued reliability of income tax data samples and to evaluate ways in which the quality of samples may be improved, the commissioner shall study and evaluate alternatives to requiring taxpayers to attach a copy of their federal return when filing Minnesota state income tax. The study must be prepared in consultation with the coordinating committee established in Minnesota Statutes, section 270.0681, subdivision 2. The study must:
(1) evaluate the quality of federal electronic data compared to sample data prepared from returns filed with the department;
(2) evaluate alternative sampling methodology, including preselection of sampled returns, panel data, and other sampling methods; and
(3) evaluate and test whether alternative methods can
(i) provide a data sample that is as accurate and reliable as one prepared from federal returns that are filed with or attached to Minnesota individual income tax returns; and
(ii) result in a data sample that will continue to be available to staff of both the department of finance and the legislature on the same basis as one prepared from returns required to be attached to or filed with the Minnesota tax returns.
(c) The commissioner of revenue shall report the findings of the study to the house tax committee chair, the senate tax committee chair, and the commissioner of finance.
(d) The commissioner of revenue shall, with the approval of the commissioner of finance, prepare a bill for introduction in the 2001 legislative session that eliminates, for some or all taxpayers, the requirement that a copy of the federal return be filed with the individual income tax return, if the commissioner determines as a result of the study that:
(1) an alternative method would provide a data sample that is as accurate and reliable as one prepared from federal returns required to be filed with the Minnesota return; and
(2) the sample will continue to be available to the staff of both the department of finance and the legislature on the same basis as one prepared from returns required to be filed with Minnesota tax returns.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 35. [COMMISSIONER OF REVENUE; TEMPORARY POWERS.]
Subdivision 1. [APPLICABILITY.] This section gives the commissioner of revenue certain temporary powers. These powers apply only to taxes imposed under Minnesota Statutes, sections 290.032, 290.06, and 290.091 administered by the commissioner under Minnesota Statutes, chapters 289A and 290.
Subd. 2. [PAYMENT OF TAXES.] The commissioner may establish additional due dates, applicable to certain groups of taxpayers, for the payment of taxes. Unless the commissioner has the written consent of the taxpayer, the additional payment dates must not require the taxpayer to pay the tax earlier than the payment dates provided by statute or rule. The commissioner may accept various forms of payment, including, but not limited to, financial transaction cards and electronic funds transfer.
Subd. 3. [FILING OF RETURN.] The commissioner may establish additional due dates, applicable to certain groups of taxpayers, for the filing of tax returns. Unless the commissioner has the written consent of the taxpayer, the return due date must not be earlier than the due date provided by statute or rule. In conducting pilot studies, the commissioner may use tax return forms with varying formats, accept electronic filed returns, and waive the taxpayer signature requirements.
Subd. 4. [AGREEMENTS.] The commissioner may enter written agreements with taxpayers that provide for the payment of taxes or the filing of returns at dates earlier than provided by statute or rule. The commissioner and the taxpayer may also agree in writing to other changes from the statutory or rule requirements related to the administration of these taxes. If the taxpayer agrees to pay taxes at a date earlier than that provided by statute, the commissioner may negotiate payments to the taxpayer to compensate in part or in full for the loss incurred as a result of the accelerated payment.
Subd. 5. [PROCEDURE; APPROVAL.] Pilot studies proposed under these authorities must be presented to the chairs of the house of representatives tax committee and the senate committee on taxes and to the chairs of the committees on state government finance of the house of representatives and the senate. No study may be undertaken without the approval of both tax committee chairs. If either chair fails to respond within 15 days after the proposal is presented, that chair is considered to have approved the study. If the study is approved, the commissioner shall initially seek participation on a voluntary basis from within the targeted taxpayer group.
Subd. 6. [EXPIRATION DATE.] This section expires June 30, 2002, and all pilot projects under this section must be completed by June 30, 2002.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 36. [STUDY OF TAXPAYER ASSISTANCE SERVICES.]
The commissioner of revenue shall study the availability of taxpayer assistance services throughout the state and provide a written report to the legislature, in compliance with Minnesota Statutes, sections 3.195 and 3.197, by January 15, 2001. "Taxpayer assistance services" means accounting and tax preparation services provided by volunteers to low-income and disadvantaged Minnesota residents to help them file federal and state income tax returns and Minnesota property tax refund claims and to provide personal representation before the department of revenue and the Internal Revenue Service. The study must evaluate:
(1) ways of establishing a measure to evaluate the effectiveness of volunteers in achieving the department's mission of achieving compliance with the tax laws;
(2) the geographic distribution and number of volunteer tax preparation sites throughout the state, in comparison to the distribution of low-income, elderly, and nonnative English speakers;
(3) the income, language skills, and age-related screening criteria used at volunteer tax preparations sites in determining Minnesota residents' eligibility for taxpayer assistance services;
(4) the level of training, support, and coordination that the department provides to volunteers and the optimal level of training for volunteers to have an adequate understanding of Minnesota's tax forms;
(5) the effectiveness of grants awarded under Laws 1999, chapter 243, article 2, section 31; and
(6) the availability of volunteers to assist taxpayers in preparing Minnesota property tax refund claims after April 15.
The commissioner must invite testimony from organizations and government entities concerned with taxpayer assistance, both paid and volunteer. Organizations receiving grants under Laws 1999, chapter 243, article 2, section 31, must provide information necessary to the completion of the study to the commissioner on request.
The study must consider the role of current economic conditions, including the state unemployment rate, in training and retaining qualified volunteers, the adequacy of current taxpayer assistance services, the role of the department of revenue in assisting low-income, elderly, and nonnative English speakers, and must recommend ways for improving the availability and the quality of taxpayer assistance services.
Sec. 37. [REPORT ON ELECTRONIC CHECKOFF.]
The commissioner of revenue must report by February 1, 2001, to the committees on taxes of the house of representatives and the senate on implementing an electronic income tax checkoff program. The program must be designed to allow an individual who files an income tax return electronically to designate that a portion of the individual's tax liability reported on the return be deposited in one or more accounts established by law and dedicated to particular programs or purposes.
EFFECTIVE DATE: This section is effective the day following final enactment.
ARTICLE 5
PROPERTY TAXES
Section 1. Minnesota Statutes 1998, section 270.072, subdivision 2, is amended to read:
Subd. 2. [ASSESSMENT OF FLIGHT PROPERTY.] The flight property of all airline companies operating in Minnesota shall be assessed and appraised annually by the commissioner with reference to its value on January 2 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed flights shall be excluded from the provisions of sections 270.071 to 270.079.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter.
Sec. 2. Minnesota Statutes 1998, section 270.072, is amended by adding a subdivision to read:
Subd. 6. [AIRFLIGHT PROPERTY TAX LIEN.] The tax imposed under sections 270.071 to 270.079 is a lien on all real and personal property within this state of the airline company in whose name the property is assessed. For purposes of sections 270.65 and 270.69, the date of assessment for the tax imposed under sections 270.071 to 270.079 is January 2 of each year for the taxes payable in the following year.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter.
Sec. 3. Minnesota Statutes 1999 Supplement, section 272.02, subdivision 39, is amended to read:
Subd. 39. [ECONOMIC DEVELOPMENT; PUBLIC PURPOSE.] The holding of property by a political subdivision of the state for later resale for economic development purposes shall be considered a public purpose in accordance with subdivision 8 for a period not to exceed eight years, except that for property located in a city of 5,000 population or under that is located outside of the metropolitan area as defined in section 473.121, subdivision 2, the period must not exceed 15 years.
The holding of property by a political subdivision of the state for later resale (1) which is purchased or held for housing purposes, or (2) which meets the conditions described in section 469.174, subdivision 10, shall be considered a public purpose in accordance with subdivision 8.
The governing body of the political subdivision which acquires property which is subject to this subdivision shall after the purchase of the property certify to the city or county assessor whether the property is held for economic development purposes or housing purposes, or whether it meets the conditions of section 469.174, subdivision 10. If the property is acquired for economic development purposes and buildings or other improvements are constructed after acquisition of the property, and if more than one-half of the floor space of the buildings or improvements which is available for lease to or use by a private individual, corporation, or other entity is leased to or otherwise used by a private individual, corporation, or other entity the provisions of this subdivision shall not apply to the property. This subdivision shall not create an exemption from section 272.01, subdivision 2; 272.68; 273.19; or 469.040, subdivision 3; or other provision of law providing for the taxation of or for payments in lieu of taxes for publicly held property which is leased, loaned, or otherwise made available and used by a private person.
EFFECTIVE DATE: This section is effective for taxes levied in 2000, payable in 2001, and thereafter.
Sec. 4. Minnesota Statutes 1999 Supplement, section 272.02, is amended by adding a subdivision to read:
Subd. 44. [ELECTRIC GENERATION FACILITY PERSONAL PROPERTY.] Notwithstanding subdivision 9, clause (a), attached machinery and other personal property which is part of a simple-cycle combustion-turbine electric generation facility that exceeds 250 megawatts of installed capacity and that meets the requirements of this subdivision is exempt. At the time of construction, the facility must:
(1) utilize natural gas as a primary fuel;
(2) be located within 20 miles of parallel existing 16-inch and 12-inch (outside diameter) natural gas pipelines and a 345-kilovolt high-voltage electric transmission line; and
(3) be designed to provide peaking, emergency backup, or contingency services, and have received a certificate of need under section 216B.243 demonstrating demand for its capacity.
Construction of the facility must be commenced after January 1, 2000, and before January 1, 2004. Property eligible for this exemption does not include electric transmission lines and interconnections or gas pipelines and interconnections appurtenant to the property or the facility.
EFFECTIVE DATE: This section is effective for assessment year 2001 and thereafter.
Sec. 5. Minnesota Statutes 1998, section 272.115, subdivision 1, is amended to read:
Subdivision 1. [REQUIREMENT.] Except as otherwise provided in subdivision 5, whenever any real estate is sold for a consideration in excess of $1,000, whether by warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor, grantee or the legal agent of either shall file a certificate of value with the county auditor in the county in which the property is located when the deed or other document is presented for recording. Contract for deeds are subject to recording under section 507.235, subdivision 1. Value shall, in the case of any deed not a gift, be the amount of the full actual consideration thereof, paid or to be paid, including the amount of any lien or liens assumed. The items and value of personal property transferred with the real property must be listed and deducted from the sale price. The certificate of value shall include the classification to which the property belongs for the purpose of determining the fair market value of the property. The certificate shall include financing terms and conditions of the sale which are necessary to determine the actual, present value of the sale price for purposes of the sales ratio study. The commissioner of revenue shall promulgate administrative rules specifying the financing terms and conditions which must be included on the certificate. Pursuant to the authority of the commissioner of revenue in section 270.066, the certificate of value must include the social security number or the federal employer identification number of the grantors and grantees. The identification numbers of the grantors and grantees are private data on individuals or nonpublic data as defined in section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or nonpublic data may be disclosed to the commissioner of revenue for purposes of tax administration. The information required to be shown on the certificate of value is limited to the information required as of the date of the acknowledgment on the deed or other document to be recorded.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 1998, section 273.111, subdivision 3, is amended to read:
Subd. 3. [REQUIREMENTS.] (a) Real estate consisting of ten acres or more or a nursery or greenhouse, and qualifying for classification as class 1b, 2a, or 2b under section 273.13, subdivision 23, paragraph (d), shall be entitled to valuation and tax deferment under this section only if it is primarily devoted to agricultural use, and meets the qualifications in subdivision 6, and either:
(1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the owner or is real estate which is farmed with the real estate which contains the homestead property; or
(2) has been in possession of the applicant, the applicant's spouse, parent, or sibling, or any combination thereof,
for a period of at least seven years prior to application for benefits under the provisions of this section, or is real
estate which is farmed with the real estate which qualifies under this clause and is within two four
townships or cities or combination thereof from the qualifying real estate; or
(3) is the homestead of a shareholder in a family farm corporation as defined in section 500.24, notwithstanding the fact that legal title to the real estate may be held in the name of the family farm corporation; or
(4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor, partnership, or corporation which also owns the nursery or greenhouse operations on the parcel or parcels.
(b) Valuation of real estate under this section is limited to parcels the ownership of which is in noncorporate entities except for:
(1) family farm corporations organized pursuant to section 500.24; and
(2) corporations that derive 80 percent or more of their gross receipts from the wholesale or retail sale of horticultural or nursery stock.
Corporate entities who previously qualified for tax deferment pursuant to this section and who continue to otherwise qualify under subdivisions 3 and 6 for a period of at least three years following the effective date of Laws 1983, chapter 222, section 8, will not be required to make payment of the previously deferred taxes, notwithstanding the provisions of subdivision 9. Special assessments are payable at the end of the three-year period or at time of sale, whichever comes first.
(c) Land that previously qualified for tax deferment under this section and no longer qualifies because it is not primarily used for agricultural purposes but would otherwise qualify under subdivisions 3 and 6 for a period of at least three years will not be required to make payment of the previously deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to the expiration of the three-year period requires payment of deferred taxes as follows: sale in the year the land no longer qualifies requires payment of the current year's deferred taxes plus payment of deferred taxes for the two prior years; sale during the second year the land no longer qualifies requires payment of the current year's deferred taxes plus payment of the deferred taxes for the prior year; and sale during the third year the land no longer qualifies requires payment of the current year's deferred taxes. Deferred taxes shall be paid even if the land qualifies pursuant to subdivision 11a. When such property is sold or no longer qualifies under this paragraph, or at the end of the three-year period, whichever comes first, all deferred special assessments plus interest are payable in equal installments spread over the time remaining until the last maturity date of the bonds issued to finance the improvement for which the assessments were levied. If the bonds have matured, the deferred special assessments plus interest are payable within 90 days. The provisions of section 429.061, subdivision 2, apply to the collection of these installments. Penalties are not imposed on any such special assessments if timely paid.
EFFECTIVE DATE: This section is effective for taxes payable in 2000 and thereafter.
Sec. 7. Minnesota Statutes 1999 Supplement, section 273.124, subdivision 1, is amended to read:
Subdivision 1. [GENERAL RULE.] (a) Residential real estate that is occupied and used for the purposes of a homestead by its owner, who must be a Minnesota resident, is a residential homestead.
Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and used as a homestead by its owner, who must be a Minnesota resident, is an agricultural homestead.
Dates for establishment of a homestead and homestead treatment provided to particular types of property are as provided in this section.
Property of held by a trustee, beneficiary, or grantor of under a trust is not
disqualified from receiving eligible for homestead benefits classification if the
homestead requirements under this chapter are satisfied.
The assessor shall require proof, as provided in subdivision 13, of the facts upon which classification as a homestead may be determined. Notwithstanding any other law, the assessor may at any time require a homestead application to be filed in order to verify that any property classified as a homestead continues to be eligible for homestead status. Notwithstanding any other law to the contrary, the department of revenue may, upon request from an assessor, verify whether an individual who is requesting or receiving homestead classification has filed a Minnesota income tax return as a resident for the most recent taxable year for which the information is available.
When there is a name change or a transfer of homestead property, the assessor may reclassify the property in the next assessment unless a homestead application is filed to verify that the property continues to qualify for homestead classification.
(b) For purposes of this section, homestead property shall include property which is used for purposes of the homestead but is separated from the homestead by a road, street, lot, waterway, or other similar intervening property. The term "used for purposes of the homestead" shall include but not be limited to uses for gardens, garages, or other outbuildings commonly associated with a homestead, but shall not include vacant land held primarily for future development. In order to receive homestead treatment for the noncontiguous property, the owner must use the property for the purposes of the homestead, and must apply to the assessor, both by the deadlines given in subdivision 9. After initial qualification for the homestead treatment, additional applications for subsequent years are not required.
(c) Residential real estate that is occupied and used for purposes of a homestead by a relative of the owner is a homestead but only to the extent of the homestead treatment that would be provided if the related owner occupied the property. For purposes of this paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship may be by blood or marriage. Property that has been classified as seasonal recreational residential property at any time during which it has been owned by the current owner or spouse of the current owner will not be reclassified as a homestead unless it is occupied as a homestead by the owner; this prohibition also applies to property that, in the absence of this paragraph, would have been classified as seasonal recreational residential property at the time when the residence was constructed. Neither the related occupant nor the owner of the property may claim a property tax refund under chapter 290A for a homestead occupied by a relative. In the case of a residence located on agricultural land, only the house, garage, and immediately surrounding one acre of land shall be classified as a homestead under this paragraph, except as provided in paragraph (d).
(d) Agricultural property that is occupied and used for purposes of a homestead by a relative of the owner, is a homestead, only to the extent of the homestead treatment that would be provided if the related owner occupied the property, and only if all of the following criteria are met:
(1) the relative who is occupying the agricultural property is a son, daughter, grandson, granddaughter,
father, or mother of the owner of the agricultural property or a son, or daughter, grandson, or
granddaughter of the spouse of the owner of the agricultural property;
(2) the owner of the agricultural property must be a Minnesota resident;
(3) the owner of the agricultural property must not receive homestead treatment on any other agricultural property in Minnesota; and
(4) the owner of the agricultural property is limited to only one agricultural homestead per family under this paragraph.
Neither the related occupant nor the owner of the property may claim a property tax refund under chapter 290A for a homestead occupied by a relative qualifying under this paragraph. For purposes of this paragraph, "agricultural property" means the house, garage, other farm buildings and structures, and agricultural land.
Application must be made to the assessor by the owner of the agricultural property to receive homestead benefits under this paragraph. The assessor may require the necessary proof that the requirements under this paragraph have been met.
(e) In the case of property owned by a property owner who is married, the assessor must not deny homestead treatment in whole or in part if only one of the spouses occupies the property and the other spouse is absent due to: (1) marriage dissolution proceedings, (2) legal separation, (3) employment or self-employment in another location, or (4) other personal circumstances causing the spouses to live separately, not including an intent to obtain two
homestead classifications for property tax purposes. To qualify under clause (3), the spouse's place of employment or self-employment must be at least 50 miles distant from the other spouse's place of employment, and the homesteads must be at least 50 miles distant from each other. Homestead treatment, in whole or in part, shall not be denied to the owner's spouse who previously occupied the residence with the owner if the absence of the owner is due to one of the exceptions provided in this paragraph.
(f) The assessor must not deny homestead treatment in whole or in part if:
(1) in the case of a property owner who is not married, the owner is absent due to residence in a nursing home or boarding care facility and the property is not otherwise occupied; or
(2) in the case of a property owner who is married, the owner or the owner's spouse or both are absent due to residence in a nursing home or boarding care facility and the property is not occupied or is occupied only by the owner's spouse.
(g) If an individual is purchasing property with the intent of claiming it as a homestead and is required by the terms of the financing agreement to have a relative shown on the deed as a coowner, the assessor shall allow a full homestead classification. This provision only applies to first-time purchasers, whether married or single, or to a person who had previously been married and is purchasing as a single individual for the first time. The application for homestead benefits must be on a form prescribed by the commissioner and must contain the data necessary for the assessor to determine if full homestead benefits are warranted.
(h) If residential or agricultural real estate is occupied and used for purposes of a homestead by a child of a deceased owner and the property is subject to jurisdiction of probate court, the child shall receive relative homestead classification under paragraph (c) or (d) to the same extent they would be entitled to it if the owner was still living, until the probate is completed. For purposes of this paragraph, "child" includes a relationship by blood or by marriage.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter.
Sec. 8. Minnesota Statutes 1999 Supplement, section 273.124, subdivision 8, is amended to read:
Subd. 8. [HOMESTEAD OWNED BY OR LEASED TO FAMILY FARM CORPORATION, JOINT
FARM VENTURE, LIMITED LIABILITY COMPANY, OR PARTNERSHIP OR LEASED TO FAMILY
FARM CORPORATION OR PARTNERSHIP.] (a) Each family farm corporation, each joint farm venture,
each limited liability company, and each partnership operating a family farm is entitled to class 1b under section
273.13, subdivision 22, paragraph (b), or class 2a assessment for one homestead occupied by a shareholder,
member, or partner thereof who is residing on the land except as provided in subdivision 14, paragraph
(g), and actively engaged in farming of the land owned by the corporation, joint farm venture, limited
liability company, or partnership. Homestead treatment applies even if legal title to the property is in the name
of the corporation, joint farm venture, limited liability company, or partnership and not in the name of the
person residing on it.
"Family farm corporation," and "family farm," and "farm partnership" have
the meanings given in section 500.24, except that the number of allowable shareholders or partners under this
subdivision shall not exceed 12. "Limited liability company" has the meaning contained in section 322B.03,
subdivision 28. "Joint farm venture" means a cooperative agreement among two or more farm enterprises authorized
to operate farm land under section 500.24.
(b) In addition to property specified in paragraph (a), any other residences owned by corporations, joint farm ventures, limited liability companies, or partnerships described in paragraph (a) which are located on agricultural land and occupied as homesteads by shareholders, members, or partners who are actively engaged in farming on behalf of the corporation, joint farm venture, limited liability company, or partnership must also be assessed as class 2a property or as class 1b property under section 273.13, subdivision 22, paragraph (b).
(c) Agricultural property owned by a shareholder of a family farm corporation or joint farm venture, as defined in paragraph (a), or by a member of a limited liability company, or by a partner in a partnership operating a family farm and leased to the family farm corporation by the shareholder, or to a member of a limited liability company, or to the partnership by the partner, is eligible for classification as class 1b under section 273.13, subdivision 22, paragraph (b), or class 2a under section 273.13, subdivision 23, paragraph (a), if the owner is actually residing on the property except as provided in subdivision 14, paragraph (g), and is actually engaged in farming the land on behalf of the corporation, joint farm venture, limited liability company, or partnership. This paragraph applies without regard to any legal possession rights of the family farm corporation, joint farm venture, limited liability company, or partnership operating a family farm under the lease.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter except that the references to a limited liability company or a member of a limited liability company are effective only if H. F. No. 3312 is enacted during the 2000 session.
Sec. 9. Minnesota Statutes 1999 Supplement, section 273.124, subdivision 14, is amended to read:
Subd. 14. [AGRICULTURAL HOMESTEADS; SPECIAL PROVISIONS.] (a) Real estate of less than ten acres that is the homestead of its owner must be classified as class 2a under section 273.13, subdivision 23, paragraph (a), if:
(1) the parcel on which the house is located is contiguous on at least two sides to (i) agricultural land, (ii) land owned or administered by the United States Fish and Wildlife Service, or (iii) land administered by the department of natural resources on which in lieu taxes are paid under sections 477A.11 to 477A.14;
(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 acres;
(3) the noncontiguous land is located not farther than four townships or cities, or a combination of townships or cities from the homestead; and
(4) the agricultural use value of the noncontiguous land and farm buildings is equal to at least 50 percent of the market value of the house, garage, and one acre of land.
Homesteads initially classified as class 2a under the provisions of this paragraph shall remain classified as class 2a, irrespective of subsequent changes in the use of adjoining properties, as long as the homestead remains under the same ownership, the owner owns a noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use value qualifies under clause (4). Homestead classification under this paragraph is limited to property that qualified under this paragraph for the 1998 assessment.
(b)(i) Agricultural property consisting of at least 40 acres shall be classified as the owner's homestead, to the same extent as other agricultural homestead property, if all of the following criteria are met:
(1) the owner, or the owner's son or daughter, is actively farming the agricultural property;
(2) the owner of the agricultural property is a Minnesota resident, and if the owner's son or daughter is actively farming the agricultural property under clause (1), that person must also be a Minnesota resident;
(3) neither the owner nor the spouse of the agricultural property owner claims another
agricultural homestead in Minnesota; and
(4) the owner does not live farther than four townships or cities, or a combination of four townships or cities, from the agricultural property, and if the owner's son or daughter is actively farming the agricultural property under clause (1), that person must also live within the four townships or cities, or combination of four townships or cities from the agricultural property.
The relationship under this paragraph may be either by blood or marriage.
(ii) Property containing the residence of an owner who owns qualified property under clause (i) shall be classified as part of the owner's agricultural homestead, if that property is also used for noncommercial storage or drying of agricultural crops.
(c) Except as provided in paragraph (e), noncontiguous land shall be included as part of a homestead under section 273.13, subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached land is located in the same township or city, or not farther than four townships or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous lands must notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer must also notify the assessor of the other county.
(d) Agricultural land used for purposes of a homestead and actively farmed by a person holding a vested remainder interest in it must be classified as a homestead under section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other dwellings on the land used for purposes of a homestead by persons holding vested remainder interests who are actively engaged in farming the property, and up to one acre of the land surrounding each homestead and reasonably necessary for the use of the dwelling as a home, must also be assessed class 2a.
(e) Agricultural land and buildings that were class 2a homestead property under section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural homestead as a result of the April 1997 floods;
(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or Wilkin;
(3) the agricultural land and buildings remain under the same ownership for the current assessment year as existed for the 1997 assessment year and continue to be used for agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the 1997 floods, and the owner furnishes the assessor any information deemed necessary by the assessor in verifying the change in dwelling. Further notifications to the assessor are not required if the property continues to meet all the requirements in this paragraph and any dwellings on the agricultural land remain uninhabited.
(f) Agricultural land and buildings that were class 2a homestead property under section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural homestead as a result of damage caused by a March 29, 1998, tornado;
(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur, Nicollet, Nobles, or Rice;
(3) the agricultural land and buildings remain under the same ownership for the current assessment year as existed for the 1998 assessment year;
(4) the dwelling occupied by the owner is located in this state and is within 50 miles of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to a March 29, 1998, tornado, and the owner furnishes the assessor any information deemed necessary by the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the owner must notify the assessor by December 1, 1998. Further notifications to the assessor are not required if the property continues to meet all the requirements in this paragraph and any dwellings on the agricultural land remain uninhabited.
(g) Agricultural property consisting of at least 40 acres of a family farm corporation, joint farm venture, limited liability company, or partnership as described under subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead property, if all of the following criteria are met:
(1) the shareholder, member, or partner is actively farming the agricultural property;
(2) the shareholder, member, or partner of the agricultural property is a Minnesota resident;
(3) neither the shareholder, member, or partner, nor the spouse of the shareholder, member, or partner claims another agricultural homestead in Minnesota; and
(4) the shareholder, member, or partner does not live farther than four townships or cities, or a combination of four townships or cities, from the agricultural property.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter except that the references to a limited liability company or a member of a limited liability company are effective only if H. F. No. 3312 is enacted during the 2000 session.
Sec. 10. Minnesota Statutes 1998, section 273.124, is amended by adding a subdivision to read:
Subd. 21. [TRUST PROPERTY; HOMESTEAD.] Real property held by a trustee under a trust is eligible for classification as homestead property if:
(1) the grantor or surviving spouse of the grantor of the trust occupies and uses the property as a homestead;
(2) a relative or surviving relative of the grantor who meets the requirements of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph (d), in the case of agricultural property, occupies and uses the property as a homestead;
(3) a family farm corporation, joint farm venture, limited liability company, or partnership operating a family farm rents the property held by a trustee under a trust, and a shareholder, member, or partner of the corporation, joint farm venture, limited liability company, or partnership occupies and uses the property as a homestead, and is actively farming the property on behalf of the corporation, joint farm venture, limited liability company, or partnership; or
(4) a person who has received homestead classification for property taxes payable in 2000 on the basis of an unqualified legal right under the terms of the trust agreement to occupy the property as that person's homestead and who continues to use the property as a homestead.
For purposes of this subdivision, "grantor" is defined as the person creating or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written instrument or through the exercise of a power of appointment.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter except that the references to a limited liability company or a member of a limited liability company are effective only if H. F. No. 3312 is enacted during the 2000 session.
Sec. 11. Minnesota Statutes 1998, section 273.125, subdivision 8, is amended to read:
Subd. 8. [MANUFACTURED HOMES; SECTIONAL STRUCTURES.] (a) In this section, "manufactured home" means a structure transportable in one or more sections, which is built on a permanent chassis, and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and contains
the plumbing, heating, air conditioning, and electrical systems in it. Manufactured home includes any accessory structure that is an addition or supplement to the manufactured home and, when installed, becomes a part of the manufactured home.
(b) A manufactured home that meets each of the following criteria must be valued and assessed as an improvement to real property, the appropriate real property classification applies, and the valuation is subject to review and the taxes payable in the manner provided for real property:
(1) the owner of the unit holds title to the land on which it is situated;
(2) the unit is affixed to the land by a permanent foundation or is installed at its location in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34, and rules adopted under those sections, or is affixed to the land like other real property in the taxing district; and
(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced by water and sewer facilities comparable to other real property in the taxing district.
(c) A manufactured home that meets each of the following criteria must be assessed at the rate provided by the appropriate real property classification but must be treated as personal property, and the valuation is subject to review and the taxes payable in the manner provided in this section:
(1) the owner of the unit is a lessee of the land under the terms of a lease;
(2) the unit is affixed to the land by a permanent foundation or is installed at its location in accordance with the Manufactured Home Building Code contained in sections 327.31 to 327.34, and the rules adopted under those sections, or is affixed to the land like other real property in the taxing district; and
(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced by water and sewer facilities comparable to other real property in the taxing district.
(d) Sectional structures must be valued and assessed as an improvement to real property if the owner of the structure holds title to the land on which it is located or is a qualifying lessee of the land under section 273.19. In this paragraph "sectional structure" means a building or structural unit that has been in whole or substantial part manufactured or constructed at an off-site location to be wholly or partially assembled on-site alone or with other units and attached to a permanent foundation.
(e) The commissioner of revenue may adopt rules under the Administrative Procedure Act to establish additional criteria for the classification of manufactured homes and sectional structures under this subdivision.
(f) A storage shed, deck, or similar improvement constructed on property that is leased or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer is taxable as provided in this section. In the case of property that is leased or rented as a site for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered personal property under this paragraph is taxable only if its total estimated market value is over $500. The property is taxable as personal property to the lessee of the site if it is not owned by the owner of the site. The property is taxable as real estate if it is owned by the owner of the site. As a condition of permitting the owner of the manufactured home, sectional structure, park trailer, or travel trailer to construct improvements on the leased or rented site, the owner of the site must obtain the permanent home address of the lessee or user of the site. The site owner must provide the name and address to the assessor upon request.
EFFECTIVE DATE: This section is effective beginning with the 2000 assessment.
Sec. 12. Minnesota Statutes 1999 Supplement, section 273.13, subdivision 24, is amended to read:
Subd. 24. [CLASS 3.] (a) Commercial and industrial property and utility real and personal property is class 3a.
(1) Except as otherwise provided, each parcel of commercial, industrial, or utility real property
has a class rate of 2.4 percent of the first tier of market value, and 3.4 percent of the remaining market value,
except that. In the case of contiguous parcels of property owned by the same person or entity, only the
value equal to the first-tier value
of the contiguous parcels qualifies for the reduced class rate, except that contiguous parcels owned by the same
person or entity shall be eligible for the first-tier value class rate on each separate business operated by the owner
of the property, provided the business is housed in a separate structure. For the purposes of this subdivision,
the first tier means the first $150,000 of market value. Real property owned in fee by a utility for transmission line
right-of-way shall be classified at the class rate for the higher tier. All personal property shall be classified at the
class rate for the higher tier. For purposes of this subdivision "personal property" means tools, implements, and
machinery of an electric generating, transmission, or distribution system, or a pipeline system transporting or
distributing water, gas, crude oil, or petroleum products or mains and pipes used in the distribution of steam or hot
or chilled water for heating or cooling buildings, which are fixtures.
For purposes of this paragraph subdivision, parcels are considered to be contiguous even if they
are separated from each other by a road, street, vacant lot, waterway, or other similar intervening type of
property. Connections between parcels that consist of power lines or pipelines do not cause the parcels to be
contiguous. Property owners who have contiguous parcels of property that constitute separate businesses that may
qualify for the first-tier class rate shall notify the assessor by July 1, for treatment beginning in the following taxes
payable year.
(2) Personal property that is: (i) part of an electric generation, transmission, or distribution system; or (ii) part of a pipeline system transporting or distributing water, gas, crude oil, or petroleum products; and (iii) not described in clause (3), has a class rate as provided under clause (1) for the first tier of market value and the remaining market value. In the case of multiple parcels in one county that are owned by one person or entity, only one first tier amount is eligible for the reduced rate.
(3) The entire market value of personal property that is: (i) tools, implements, and machinery of an electric generation, transmission, or distribution system; (ii) tools, implements, and machinery of a pipeline system transporting or distributing water, gas, crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of steam or hot or chilled water for heating or cooling buildings, has a class rate as provided under clause (1) for the remaining market value in excess of the first tier.
(b) Employment property defined in section 469.166, during the period provided in section 469.170, shall constitute class 3b. The class rates for class 3b property are determined under paragraph (a).
(c)(1) Subject to the limitations of clause (2), structures which are (i) located on property classified as class 3a, (ii) constructed under an initial building permit issued after January 2, 1996, (iii) located in a transit zone as defined under section 473.3915, subdivision 3, (iv) located within the boundaries of a school district, and (v) not primarily used for retail or transient lodging purposes, shall have a class rate equal to the lesser of 2.975 percent or the class rate of the second tier of the commercial property rate under paragraph (a) on any portion of the market value that does not qualify for the first tier class rate under paragraph (a). As used in item (v), a structure is primarily used for retail or transient lodging purposes if over 50 percent of its square footage is used for those purposes. A class rate equal to the lesser of 2.975 percent or the class rate of the second tier of the commercial property class rate under paragraph (a) shall also apply to improvements to existing structures that meet the requirements of items (i) to (v) if the improvements are constructed under an initial building permit issued after January 2, 1996, even if the remainder of the structure was constructed prior to January 2, 1996. For the purposes of this paragraph, a structure shall be considered to be located in a transit zone if any portion of the structure lies within the zone. If any property once eligible for treatment under this paragraph ceases to remain eligible due to revisions in transit zone boundaries, the property shall continue to receive treatment under this paragraph for a period of three years.
(2) This clause applies to any structure qualifying for the transit zone reduced class rate under clause (1) on January 2, 1999, or any structure meeting any of the qualification criteria in item (i) and otherwise qualifying for the transit zone reduced class rate under clause (1). Such a structure continues to receive the transit zone reduced class rate until the occurrence of one of the events in item (ii). Property qualifying under item (i)(D), that is located outside of a city of the first class, qualifies for the transit zone reduced class rate as provided in that item. Property qualifying under item (i)(E) qualifies for the transit zone reduced class rate as provided in that item.
(i) A structure qualifies for the rate in this clause if it is:
(A) property for which a building permit was issued before December 31, 1998; or
(B) property for which a building permit was issued before June 30, 2001, if:
(I) at least 50 percent of the land on which the structure is to be built has been acquired or is the subject of signed purchase agreements or signed options as of March 15, 1998, by the entity that proposes construction of the project or an affiliate of the entity;
(II) signed agreements have been entered into with one entity or with affiliated entities to lease for the account of the entity or affiliated entities at least 50 percent of the square footage of the structure or the owner of the structure will occupy at least 50 percent of the square footage of the structure; and
(III) one of the following requirements is met:
the project proposer has submitted the completed data portions of an environmental assessment worksheet by December 31, 1998; or
a notice of determination of adequacy of an environmental impact statement has been published by April 1, 1999; or
an alternative urban areawide review has been completed by April 1, 1999; or
(C) property for which a building permit is issued before July 30, 1999, if:
(I) at least 50 percent of the land on which the structure is to be built has been acquired or is the subject of signed purchase agreements as of March 31, 1998, by the entity that proposes construction of the project or an affiliate of the entity;
(II) a signed agreement has been entered into between the building developer and a tenant to lease for its own account at least 200,000 square feet of space in the building;
(III) a signed letter of intent is entered into by July 1, 1998, between the building developer and the tenant to lease the space for its own account; and
(IV) the environmental review process required by state law was commenced by December 31, 1998;
(D) property for which an irrevocable letter of credit with a housing and redevelopment authority was signed
before December 31, 1998. The structure shall receive the transit zone reduced class rate during construction and
for the duration of time that the original tenants remain in the building. Any unoccupied net leasable square footage
that is not leased within 36 months after the certificate of occupancy has been issued for the building shall not be
eligible to receive the reduced class rate. This reduced class rate applies only if the a qualifying
entity that constructed the structure continues to own the property;
(E) property, located in a city of the first class, and for which the building permits for the excavation, the parking
ramp, and the office tower were issued prior to April 1, 1999, shall receive the reduced class rate during construction
and for the first five assessment years immediately following its initial occupancy provided that, when completed,
at least 25 percent of the net leasable square footage must be occupied by the a qualifying entity
or the parent entity constructing the structure each year during this time period. In order to receive the
reduced class rate on the structure in any subsequent assessment years, at least 50 percent of the rentable square
footage must be occupied by the a qualifying entity or the parent entity that constructed the
structure. This reduced class rate applies only if the a qualifying entity or the parent entity
that constructed the structure continues to own the property.
(ii) A structure specified by this clause, other than a structure qualifying under clause (i)(D) or (E), shall continue to receive the transit zone reduced class rate until the occurrence of one of the following events:
(A) if the structure upon initial occupancy will be owner occupied by the entity initially constructing the structure or an affiliated entity, the structure receives the reduced class rate until the structure ceases to be at least 50 percent occupied by the entity or an affiliated entity, provided, if the portion of the structure occupied by that entity or an affiliate of the entity is less than 85 percent, the transit zone class rate reduction for the portion of structure not so occupied terminates upon the leasing of such space to any nonaffiliated entity; or
(B) if the structure is leased by a single entity or affiliated entity at the time of initial occupancy, the structure shall receive the reduced class rate until the structure ceases to be at least 50 percent occupied by the entity or an affiliated entity, provided, if the portion of the structure occupied by that entity or an affiliate of the entity is less than 85 percent, the transit zone class rate reduction for the portion of structure not so occupied shall terminate upon the leasing of such space to any nonaffiliated entity; or
(C) if the structure meets the criteria in item (i)(C), the structure shall receive the reduced class rate until the expiration of the initial lease term of the applicable tenants.
Percentages occupied or leased shall be determined based upon net leasable square footage in the structure. The assessor shall allocate the value of the structure in the same fashion as provided in the general law for portions of any structure receiving and not receiving the transit tax class reduction as a result of this clause.
(3) For purposes of paragraph (c), "qualifying entity" means the entity owning the property on September 1, 2000, or an affiliate of an entity that owned the property on September 1, 2000.
EFFECTIVE DATE: That portion of this section relating to the definition of real and personal utility property is effective for taxes payable in 2000 and thereafter. All other changes in the section are effective for taxes payable in 2001 and thereafter.
Sec. 13. Minnesota Statutes 1999 Supplement, section 273.13, subdivision 25, is amended to read:
Subd. 25. [CLASS 4.] (a) Class 4a is residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence for rental periods of 30 days or more. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt under section 272.02, and contiguous property used for hospital purposes, without regard to whether the property has been platted or subdivided. Class 4a property in a city with a population of 5,000 or less, that is (1) located outside of the metropolitan area, as defined in section 473.121, subdivision 2, or outside any county contiguous to the metropolitan area, and (2) whose city boundary is at least 15 miles from the boundary of any city with a population greater than 5,000 has a class rate of 2.15 percent of market value. All other class 4a property has a class rate of 2.4 percent of market value. For purposes of this paragraph, population has the same meaning given in section 477A.011, subdivision 3.
(b) Class 4b includes:
(1) residential real estate containing less than four units that does not qualify as class 4bb, other than seasonal residential, and recreational;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b) containing two or three units;
(4) unimproved property that is classified residential as determined under subdivision 33.
Class 4b property has a class rate of 1.65 percent of market value.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing one unit, other than seasonal residential, and recreational; and
(2) a single family dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b).
Class 4bb has a class rate of 1.2 percent on the first $76,000 of market value and a class rate of 1.65 percent of its market value that exceeds $76,000.
Property that has been classified as seasonal recreational residential property at any time during which it has been owned by the current owner or spouse of the current owner does not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real property devoted to temporary and seasonal residential occupancy for recreation purposes, including real property devoted to temporary and seasonal residential occupancy for recreation purposes and not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property is used for residential occupancy, and a fee is charged for residential occupancy. In order for a property to be classified as class 4c, seasonal recreational residential for commercial purposes, at least 40 percent of the annual gross lodging receipts related to the property must be from business conducted during 90 consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests during the year must be for periods of at least two consecutive nights; or (ii) at least 20 percent of the annual gross receipts must be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina services, launch services, and guide services, or the sale of bait and fishing tackle. For purposes of this determination, a paid booking of five or more nights shall be counted as two bookings. Class 4c also includes commercial use real property used exclusively for recreational purposes in conjunction with class 4c property devoted to temporary and seasonal residential occupancy for recreational purposes, up to a total of two acres, provided the property is not devoted to commercial recreational use for more than 250 days in the year preceding the year of assessment and is located within two miles of the class 4c property with which it is used. Class 4c property classified in this clause also includes the remainder of class 1c resorts provided that the entire property including that portion of the property classified as class 1c also meets the requirements for class 4c under this clause; otherwise the entire property is classified as class 3. Owners of real property devoted to temporary and seasonal residential occupancy for recreation purposes and all or a portion of which was devoted to commercial purposes for not more than 250 days in the year preceding the year of assessment desiring classification as class 1c or 4c, must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located will be designated class 1c or 4c as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located will be designated as class 3a. The owner of property desiring designation as class 1c or 4c property must provide guest registers or other records demonstrating that the units for which class 1c or 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, and (4) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes shall not qualify for class 1c or 4c;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a membership fee may not be required in order to use the property for golfing, and its green fees for golfing must be comparable to green fees typically charged by municipal courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with the golf course is classified as class 3a property;
(3) real property up to a maximum of one acre of land owned by a nonprofit community service oriented organization; provided that the property is not used for a revenue-producing activity for more than six days in the calendar year preceding the year of assessment and the property is not used for residential purposes on either a temporary or permanent basis. For purposes of this clause, a "nonprofit community service oriented organization" means any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue Code of 1986, as amended through December 31, 1990. For purposes of this clause, "revenue-producing activities" shall include but not be limited to property or that portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises. Any portion of the property which is used for revenue-producing activities for more than six days in the calendar year preceding the year of assessment shall be assessed as class 3a. The use of the property for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be considered a revenue-producing activity;
(4) post-secondary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on-campus housing or housing located within two miles of the border of a college campus;
(5) manufactured home parks as defined in section 327.14, subdivision 3; and
(6) real property that is actively and exclusively devoted to indoor fitness, health, social, recreational, and related uses, is owned and operated by a not-for-profit corporation, and is located within the metropolitan area as defined in section 473.121, subdivision 2; and
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, metropolitan airports commission, or group thereof, and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be filed by the new owner with the assessor of the county where the property is located within 60 days of the sale.
Class 4c property has a class rate of 1.65 percent of market value, except that (i) each parcel of seasonal residential recreational property not used for commercial purposes has the same class rates as class 4bb property, (ii) manufactured home parks assessed under clause (5) have the same class rate as class 4b property, and (iii) property described in paragraph (d), clause (4), has the same class rate as the rate applicable to the first tier of class 4bb nonhomestead residential real estate under paragraph (c).
(e) Class 4d property is qualifying low-income rental housing certified to the assessor by the housing finance agency under sections 273.126 and 462A.071. Class 4d includes land in proportion to the total market value of the building that is qualifying low-income rental housing. For all properties qualifying as class 4d, the market value determined by the assessor must be based on the normal approach to value using normal unrestricted rents.
Class 4d property has a class rate of one percent of market value.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter.
Sec. 14. Minnesota Statutes 1999 Supplement, section 273.1382, subdivision 1b, is amended to read:
Subd. 1b. [EDUCATION AGRICULTURAL CREDIT.] Property classified as class 2a agricultural homestead
or class 2b agricultural nonhomestead or timberland is eligible for education agricultural credit. The credit is equal
to 54 70 percent, in the case of agricultural homestead property up to $600,000 in market
value, or 50 63 percent, in the case of all other agricultural nonhomestead
property or timberland, of the property's net tax capacity times the education credit tax rate determined in subdivision
1. The net tax capacity portion of class 2a property attributable to consisting of
the house, garage, and surrounding one acre of land is not eligible for the credit under this subdivision, nor does
its market value count towards the valuation threshold contained in this subdivision.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 and thereafter.
Sec. 15. Minnesota Statutes 1998, section 273.37, subdivision 3, is amended to read:
Subd. 3. Taxable wind energy conversion systems, as defined in section 216C.06, subdivision 12, which are not owned, operated, and exclusively controlled by the owner of the land upon which the system is situated, must be listed and assessed by the commissioner of revenue as personal property in the name of the owner of the system in the taxing district where it is situated.
EFFECTIVE DATE: This section is effective for the 2000 assessment and thereafter.
Sec. 16. [273.372] [PROCEEDINGS AND APPEALS; UTILITY VALUATIONS.]
An appeal by a utility company concerning the exemption, valuation, or classification on property for which the commissioner of revenue has provided the county with commissioner's orders or recommended values must be brought against the commissioner in tax court or in district court of the county where the property is located, and not against the county or taxing district where the property is located. If the appeal to a court is of an order of the commissioner, it must be brought under chapter 271. If the appeal is brought under chapter 278, the procedures in that chapter apply. This provision applies to the property contained under sections 273.33, 273.35, 273.36, and 273.37, but only if the appealed values have remained unchanged from those provided to the county by the commissioner. If the exemption, valuation, or classification being appealed has been changed by the county, then the action must be brought under chapter 278 in the county where the property is located.
Upon filing of any appeal by a utility company against the commissioner, the commissioner shall give notice by first class mail to each county which would be affected by the appeal.
Companies that submit the reports under section 273.371 by the date specified in that section, or by the date specified by the commissioner in an extension, may appeal administratively to the commissioner under the procedures in section 270.11, subdivision 6, prior to bringing an action in tax court or in district court, however, instituting an administrative appeal with the commissioner does not change or modify the deadline in section 278.01 for bringing an action in tax court or district court.
EFFECTIVE DATE: This section is effective for appeals made on property for assessment year 1999 and thereafter.
Sec. 17. Minnesota Statutes 1998, section 275.066, is amended to read:
275.066 [SPECIAL TAXING DISTRICTS; DEFINITION.]
For the purposes of property taxation and property tax state aids, the term "special taxing districts" includes the following entities:
(1) watershed districts under chapter 103D;
(2) sanitary districts under sections 115.18 to 115.37;
(3) regional sanitary sewer districts under sections 115.61 to 115.67;
(4) regional public library districts under section 134.201;
(5) park districts under chapter 398;
(6) regional railroad authorities under chapter 398A;
(7) hospital districts under sections 447.31 to 447.38;
(8) St. Cloud metropolitan transit commission under sections 458A.01 to 458A.15;
(9) Duluth transit authority under sections 458A.21 to 458A.37;
(10) regional development commissions under sections 462.381 to 462.398;
(11) housing and redevelopment authorities under sections 469.001 to 469.047;
(12) port authorities under sections 469.048 to 469.068;
(13) economic development authorities under sections 469.090 to 469.1081;
(14) metropolitan council under sections 473.123 to 473.549;
(15) metropolitan airports commission under sections 473.601 to 473.680;
(16) metropolitan mosquito control commission under sections 473.701 to 473.716;
(17) Morrison county rural development financing authority under Laws 1982, chapter 437, section 1;
(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
(19) East Lake county medical clinic district under Laws 1989, chapter 211, sections 1 to 6;
(20) Floodwood area ambulance district under Laws 1993, chapter 375, article 5, section 39; and
(21) Middle Mississippi river watershed management organization under sections 103B.211 and 103B.241; and
(22) any other political subdivision of the state of Minnesota, excluding counties, school districts, cities, and towns, that has the power to adopt and certify a property tax levy to the county auditor, as determined by the commissioner of revenue.
EFFECTIVE DATE: This section is effective for taxes levied in 2000, payable in 2001, and thereafter.
Sec. 18. Minnesota Statutes 1998, section 276.19, subdivision 1, is amended to read:
Subdivision 1. [NOTICE OF OVERPAYMENT.] If an overpayment of property tax arises on a parcel for any
reason due to receipt of a payment that exceeds the total amount of the tax required to be paid on the
property tax statement, the responsible county official shall promptly notify the payer by regular mail that the
overpayment has occurred. The notice must state the amount of overpayment and identify the parcel on which the
overpayment occurred. The notice must also instruct the payer how to claim the overpayment and advise that the
overpayment is subject to forfeiture under this section. If the name or address of the payer is not known, the notice
of unclaimed overpayment must be mailed to the taxpayer of record in the office of the county auditor.
EFFECTIVE DATE: This section is effective for overpayment of taxes made the day following final enactment and thereafter, and applies only to taxes levied in 1999, payable in 2000, and thereafter.
Sec. 19. [278.14] [REFUNDS OF MISTAKENLY BILLED TAXES.]
Subdivision 1. [APPLICABILITY.] A county must pay a refund of a mistakenly billed tax as provided in this section. As used in this section, "mistakenly billed tax" means an amount of property tax that was billed, to the extent the amount billed exceeds the accurate tax amount due to a misclassification of the owner's property under section 273.13 or a mathematical error in the calculation of the tax on the owner's property, together with any penalty or interest paid on that amount. This section applies only to taxes payable in the current year and the two prior years. As used in this section, "mathematical error" is limited to an error in:
(1) converting the market value of a property to tax capacity or to a referendum market value;
(2) application of the tax rate as computed by the auditor under sections 275.08, subdivisions 1b, 1c, and 1d; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4 and 5, to the property's tax capacity or referendum market value; or
(3) calculation of or eligibility for a credit.
The remedy provided under this section does not apply to a misclassification under section 273.13 that is due to the failure of the property owner to apply for the correct classification as required by law.
Subd. 2. [PROCEDURE.] A refund of mistakenly billed tax must be paid upon verification of a claim made in a written application by the owner of the property or upon discovery of the mistakenly billed tax by the county. Refunds of overpayments will be made as provided in section 278.12.
Subd. 3. [APPEALS.] If the county rejects a claim by a property owner under subdivision 2, it must notify the property owner of that decision within 90 days of receipt of the claim. The property owner may appeal that decision to the tax court within 60 days after receipt of a notice from the county of the decision. Relief granted by the tax court is limited to current year taxes, and taxes in the two prior years.
EFFECTIVE DATE: This section is effective for overpayment of taxes made the day following final enactment and thereafter, and applies only to taxes levied in 1999, payable in 2000, and thereafter.
Sec. 20. Minnesota Statutes 1999 Supplement, section 290B.03, subdivision 1, is amended to read:
Subdivision 1. [PROGRAM QUALIFICATIONS.] The qualifications for the senior citizens' property tax deferral program are as follows:
(1) the property must be owned and occupied as a homestead by a person 65 years of age or older. In the case of a married couple, both of the spouses must be at least 65 years old at the time the first property tax deferral is granted, regardless of whether the property is titled in the name of one spouse or both spouses, or titled in another way that permits the property to have homestead status;
(2) the total household income of the qualifying homeowners, as defined in section 290A.03, subdivision 5, for the calendar year preceding the year of the initial application may not exceed $60,000;
(3) the homestead must have been owned and occupied as the homestead of at least one of the qualifying homeowners for at least 15 years prior to the year the initial application is filed;
(4) there are no delinquent property taxes, penalties, or interest on the homesteaded property;
(5) there are no delinquent special assessments on the homesteaded property;
(6) there are no state or federal tax liens or judgment liens on the homesteaded property;
(7) (5) there are no mortgages or other liens on the property that secure future advances, except
for those subject to credit limits that result in compliance with clause (8) (6); and
(8) (6) the total unpaid balances of debts secured by mortgages and other liens on the property,
including unpaid and delinquent special assessments and interest and any delinquent property taxes,
penalties, and interest, but not including property taxes payable during the year, does not exceed 30
75 percent of the assessor's estimated market value for the year.
Sec. 21. Minnesota Statutes 1998, section 290B.04, is amended by adding a subdivision to read:
Subd. 7. [PAYMENT OF DELINQUENT TAXES AND SPECIAL ASSESSMENTS.] Upon approval of a senior citizen's initial application, the commissioner of revenue shall pay to the treasurer of the county where the property is located the amount of any delinquent property taxes, penalties, interest, and delinquent special assessments and interest on the property which is the subject of the application.
Sec. 22. Minnesota Statutes 1999 Supplement, section 290B.05, subdivision 1, is amended to read:
Subdivision 1. [DETERMINATION BY COMMISSIONER.] The commissioner shall determine each qualifying homeowner's "annual maximum property tax amount" following approval of the homeowner's initial application and following the receipt of a resumption of eligibility certification. The "annual maximum property tax amount" equals three percent of the homeowner's total household income for the year preceding either the initial application or the resumption of eligibility certification, whichever is applicable. Following approval of the initial application, the commissioner shall determine the qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative to the appropriate assessment year for any homeowner whose total household income for the previous year exceeds $60,000. No tax shall be deferred in any year in which the homeowner does not meet the program qualifications in section 290B.03. The maximum allowable total deferral is equal to 75 percent of the assessor's estimated market value for the year, less the balance of any mortgage loans and other amounts secured by liens against the property at the time of application, including any unpaid and delinquent special assessments and interest and any delinquent property taxes, penalties, and interest, but not including property taxes payable during the year.
Sec. 23. Minnesota Statutes 1998, section 290B.05, subdivision 3, is amended to read:
Subd. 3. [CALCULATION OF DEFERRED PROPERTY TAX AMOUNT.] When final property tax amounts
for the following year have been determined, the county auditor shall calculate the "deferred property tax amount."
The deferred property tax amount is equal to the lesser of (1) the maximum allowable deferral for the year; or (2)
the difference between the total amount of property taxes levied upon the qualifying homestead by all taxing
jurisdictions and the maximum property tax amount. Any special assessments levied by any local unit of government
must not be included in the total tax used to calculate the deferred tax amount. No deferral of the current year's
property taxes is allowed if there are any delinquent property taxes or delinquent special assessments for any previous
year. Any tax attributable to new improvements made to the property after the initial application has been
approved under section 290B.04, subdivision 2, must be excluded when determining any subsequent deferred
property tax amount. The county auditor shall annually, on or before April 15, certify to the commissioner of
revenue the property tax deferral amounts determined under this subdivision by property and by owner.
Sec. 24. Minnesota Statutes 1998, section 290B.07, is amended to read:
290B.07 [LIEN; DEFERRED PORTION.]
(a) Payment by the state to the county treasurer of property taxes, penalties, interest, or special
assessments and interest deferred under this section chapter is deemed a loan from the state
to the program participant. The commissioner must compute the interest as provided in section 270.75, subdivision
5, but not to exceed five percent,
and maintain records of the total deferred amount and interest for each participant. Interest shall accrue beginning September 1 of the payable year for which the taxes are deferred. Any deferral made under this chapter shall not be construed as delinquent property taxes.
The lien created under section 272.31 continues to secure payment by the taxpayer, or by the taxpayer's successors or assigns, of the amount deferred, including interest, with respect to all years for which amounts are deferred. The lien for deferred taxes and interest has the same priority as any other lien under section 272.31, except that liens, including mortgages, recorded or filed prior to the recording or filing of the notice under section 290B.04, subdivision 2, have priority over the lien for deferred taxes and interest. A seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser or an assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes and interest for future years has the same priority as the lien for deferred taxes and interest for the first year, which is always higher in priority than any mortgages or other liens filed, recorded, or created after the notice recorded or filed under section 290B.04, subdivision 2. The county treasurer or auditor shall maintain records of the deferred portion and shall list the amount of deferred taxes for the year and the cumulative deferral and interest for all previous years as a lien against the property. In any certification of unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred portion becomes due and owing at the time specified in section 290B.08. Upon receipt of the payment, the commissioner shall issue a receipt for it to the person making the payment upon request and shall notify the auditor of the county in which the parcel is located, within ten days, identifying the parcel to which the payment applies. Upon receipt by the commissioner of revenue of collected funds in the amount of the deferral, the state's loan to the program participant is deemed paid in full.
(b) If property for which taxes have been deferred under this chapter forfeits under chapter 281 for nonpayment of a nondeferred property tax amount, or because of nonpayment of amounts previously deferred following a termination under section 290B.08, the lien for the taxes deferred under this chapter, plus interest and costs, shall be canceled by the county auditor as provided in section 282.07. However, notwithstanding any other law to the contrary, any proceeds from a subsequent sale of the property under chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale fund for any direct costs of selling the property or any costs directly related to preparing the property for sale, and then to reimburse the state for the amount of the canceled lien. Within 90 days of the receipt of any sale proceed to which the state is entitled under these provisions, the county auditor must pay those funds to the commissioner of revenue by warrant for deposit in the general fund. No other deposit, use, distribution, or release of gross sale proceeds or receipts may be made by the county until payments sufficient to fully reimburse the state for the canceled lien amount have been transmitted to the commissioner.
Sec. 25. Minnesota Statutes 1998, section 290B.08, subdivision 1, is amended to read:
Subdivision 1. [TERMINATION.] (a) The deferral of taxes granted under this chapter terminates when one of the following occurs:
(1) the property is sold or transferred;
(2) the death of the all qualifying homeowner(s) homeowners;
(3) the homeowner notifies the commissioner in writing that the homeowner desires to discontinue the deferral; or
(4) the property no longer qualifies as a homestead.
(b) A property is not terminated from the program because no deferred property tax amount is determined on the homestead for any given year after the homestead's initial enrollment into the program.
EFFECTIVE DATE: This section is effective for deferrals of property taxes payable in 2001 and thereafter.
Sec. 26. Minnesota Statutes 1998, section 290B.08, subdivision 2, is amended to read:
Subd. 2. [PAYMENT UPON TERMINATION.] Upon the termination of the deferral under subdivision 1, the
amount of deferred taxes and, penalties, interest, and special assessments and interest, plus
the recording or filing fees under both section 290B.04, subdivision 2, and this subdivision becomes due and payable
to the commissioner within 90 days of termination of the deferral for terminations under subdivision 1, paragraph
(a), clauses (1) and (2), and within one year of termination of the deferral for terminations under subdivision 1,
paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely paid. On receipt of
payment, the commissioner shall within ten days notify the auditor of the county in which the parcel is located,
identifying the parcel to which the payment applies and shall remit the recording or filing fees under section
290B.04, subdivision 2, and this subdivision to the auditor. A notice of termination of deferral, containing the legal
description and the recording or filing data for the notice of qualification for deferral under section 290B.04,
subdivision 2, shall be prepared and recorded or filed by the county auditor in the same office in which the notice
of qualification for deferral under section 290B.04, subdivision 2, was recorded or filed, and the county auditor shall
mail a copy of the notice of termination to the property owner. The property owner shall pay the recording or filing
fees. Upon recording or filing of the notice of termination of deferral, the notice of qualification for deferral under
section 290B.04, subdivision 2, and the lien created by it are discharged. If the deferral is not timely paid, the
penalty, interest, lien, forfeiture, and other rules for the collection of ad valorem property taxes apply.
Sec. 27. Minnesota Statutes 1998, section 290B.09, subdivision 2, is amended to read:
Subd. 2. [APPROPRIATION.] An amount sufficient to pay the total amount of property tax determined under subdivision 1, plus any amounts paid under section 290B.04, subdivision 7, is annually appropriated from the general fund to the commissioner of revenue.
Sec. 28. Minnesota Statutes 1999 Supplement, section 383D.74, subdivision 2, is amended to read:
Subd. 2. [EXPIRATION.] The authority to impose a penalty under this section expires on
December 31, 2000 2005.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 29. Minnesota Statutes 1998, section 429.011, subdivision 2a, is amended to read:
Subd. 2a. [MUNICIPALITY.] "Municipality" also includes a county in the case of construction,
reconstruction, or improvement of a county state-aid highway or county highway as defined in section
160.02 including curbs and gutters and storm sewers and includes; a county exercising its powers
and duties under section 444.075, subdivision 1; and a county for expenses not paid for under section 403.113,
subdivision 3, paragraph (b), clause (3).
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 30. Minnesota Statutes 1998, section 429.011, subdivision 5, is amended to read:
Subd. 5. [IMPROVEMENT.] "Improvement" means any type of improvement made under authority granted by section 429.021, and in the case of a county is limited to the construction, reconstruction, or improvement of a county state-aid highway or county highway including curbs and gutters and storm sewers, and to the purchase, installation, or maintenance of signs, posts, and markers for addressing related to the operation of enhanced 911 telephone service.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 31. Minnesota Statutes 1998, section 429.021, subdivision 1, is amended to read:
Subdivision 1. [IMPROVEMENTS AUTHORIZED.] The council of a municipality shall have power to make the following improvements:
(1) To acquire, open, and widen any street, and to improve the same by constructing, reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking strips of any material, or by grading, graveling, oiling, or otherwise improving the same, including the beautification thereof and including storm sewers or other street drainage and connections from sewer, water, or similar mains to curb lines.
(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps, lift stations, service connections, and other appurtenances of a sewer system, within and without the corporate limits.
(3) To construct, reconstruct, extend, and maintain steam heating mains.
(4) To install, replace, extend, and maintain street lights and street lighting systems and special lighting systems.
(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems, including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks, treatment plants, and other appurtenances of a water works system, within and without the corporate limits.
(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational facilities within or without the corporate limits.
(7) To plant trees on streets and provide for their trimming, care, and removal.
(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private property and to fill the same.
(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.
(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and promote a pedestrian skyway system. Such improvement may be made upon a petition pursuant to section 429.031, subdivision 3.
(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote underground pedestrian concourses.
(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public malls, plazas or courtyards.
(14) To construct, reconstruct, extend, and maintain district heating systems.
(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection systems in existing buildings, but only upon a petition pursuant to section 429.031, subdivision 3.
(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway sound barriers.
(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution facilities owned by a municipal gas or electric utility.
(18) To purchase, install, and maintain signs, posts, and other markers for addressing related to the operation of enhanced 911 telephone service.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 32. Minnesota Statutes 1998, section 429.031, subdivision 1, is amended to read:
Subdivision 1. [PREPARATION OF PLANS, NOTICE OF HEARING.] (a) Before the municipality awards a contract for an improvement or orders it made by day labor, or before the municipality may assess any portion of the cost of an improvement to be made under a cooperative agreement with the state or another political subdivision for sharing the cost of making the improvement, the council shall hold a public hearing on the proposed improvement following two publications in the newspaper of a notice stating the time and place of the hearing, the general nature of the improvement, the estimated cost, and the area proposed to be assessed. The two publications must be a week apart, and the hearing must be at least three days after the second publication. Not less than ten days before the hearing, notice of the hearing must also be mailed to the owner of each parcel within the area proposed to be assessed and must contain a statement that a reasonable estimate of the impact of the assessment will be available at the hearing, but failure to give mailed notice or any defects in the notice does not invalidate the proceedings. For the purpose of giving mailed notice, owners are those shown as owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer; but other appropriate records may be used for this purpose. For properties that are tax exempt or subject to taxation on a gross earnings basis and are not listed on the records of the county auditor or the county treasurer, the owners may be ascertained by any practicable means, and mailed notice must be given them as provided in this subdivision.
(b) Before the adoption of a resolution ordering the improvement, the council shall secure from the city engineer or some other competent person of its selection a report advising it in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible and as to whether it should best be made as proposed or in connection with some other improvement. The report must also include the estimated cost of the improvement as recommended. A reasonable estimate of the total amount to be assessed, and a description of the methodology used to calculate individual assessments for affected parcels, must be available at the hearing. No error or omission in the report invalidates the proceeding unless it materially prejudices the interests of an owner.
(c) If the report is not prepared by an employee of a municipality, the compensation for preparing the report under this subdivision must be based on the following factors:
(1) the time and labor required;
(2) the experience and knowledge of the preparer;
(3) the complexity and novelty of the problems involved; and
(4) the extent of the responsibilities assumed.
(d) The compensation must not be based primarily on a percentage of the estimated cost of the improvement.
(e) The council may also take other steps prior to the hearing, including, among other things, the preparation of plans and specifications and the advertisement for bids that will in its judgment provide helpful information in determining the desirability and feasibility of the improvement.
(f) The hearing may be adjourned from time to time, and a resolution ordering the improvement may be adopted at any time within six months after the date of the hearing by vote of a majority of all members of the council when the improvement has been petitioned for by the owners of not less than 35 percent in frontage of the real property abutting on the streets named in the petition as the location of the improvement. When there has been no such petition, the resolution may be adopted only by vote of four-fifths of all members of the council; provided that if the mayor of the municipality is a member of the council but has no vote or votes only in case of a tie, the mayor is not deemed to be a member for the purpose of determining a four-fifths majority vote.
(g) The resolution ordering the improvement may reduce, but not increase, the extent of the improvement as stated in the notice of hearing.
EFFECTIVE DATE: This section is effective for mailed notices and hearings held June 1, 2000, and thereafter.
Sec. 33. Minnesota Statutes 1998, section 469.040, is amended by adding a subdivision to read:
Subd. 5. [DESIGNATED HOUSING CORPORATION.] Property located within the exterior boundaries of the White Earth Indian Reservation that is owned by the tribe's designated housing entity as defined in United States Code, title 25, section 4103(21), and that is a housing project or a housing development project, as defined in section 469.002, subdivisions 13 and 15, is exempt from all real and personal property taxes of the city, the county, the state, or any political subdivision thereof, but the property is subject to subdivision 3. A copy of those portions of the annual reports submitted on behalf of the housing entity to the Secretary of the United States Department of Housing and Urban Development for the project that contain information sufficient to determine the amount due under subdivision 3 satisfies the reporting requirements of subdivision 3 for the project.
EFFECTIVE DATE: This section is effective for the 2000 assessment, taxes payable in 2001, and thereafter.
Sec. 34. Laws 1987, chapter 402, section 2, subdivision 1, is amended to read:
Subdivision 1. [AGREEMENT.] The city of Moose Lake and one or more of the towns of Moose Lake, Silver,
and Windemere may by action of their city council and town boards establish the Moose Lake fire protection district.
The town of Silver may provide that only a described part of its territory be included within the district. The
district shall provide fire protection services throughout its territory and may exercise all the powers of the city and
towns that relate to fire protection anywhere within its territory. Any other contiguous town or home rule charter
or statutory city may join the district with the agreement of the cities and towns that comprise the district at the time
of its application to join. Action to join the district may be taken by the city council or town board of the city or
town.
EFFECTIVE DATE: Pursuant to Minnesota Statutes, section 645.023, subdivision 1, clause (a), this section is effective without local approval the day following final enactment.
Sec. 35. Laws 1987, chapter 402, section 2, subdivision 4, is amended to read:
Subd. 4. [TAX.] The district may impose a property tax on real property in the district in an amount sufficient
to discharge its operating expenses and debt payable in each year. The tax shall be disregarded in the calculation of
any levies or limits on levies provided by Minnesota Statutes, chapter 275, or other law. A city or town that joins
the district may not incur expenses or debt for fire protection services for territory included in the district and may
not impose taxes for that purpose. The town of Silver may impose a property tax on territory not included in the
district to discharge costs or debt incurred to provide fire protection services to that territory.
EFFECTIVE DATE: Pursuant to Minnesota Statutes, section 645.023, subdivision 1, clause (a), this section is effective without local approval the day following final enactment.
Sec. 36. Laws 1987, chapter 402, section 2, subdivision 5, is amended to read:
Subd. 5. [PUBLIC INDEBTEDNESS.] The district may incur debt in the manner provided for a municipality
by Minnesota Statutes, chapter 475, when necessary to accomplish a duty charged to it. The district may also
issue certificates of indebtedness subject to debt limits for the district to purchase capital equipment having an
expected useful life at least as long as the terms of the certificates. The certificates must be payable in not more than
five years and must be issued on the terms and in the manner as the board may determine. Before issuing certificates
in an amount exceeding .25 percent of the taxable property of the district, the board shall publish a resolution
indicating its intent to issue the certificates in a newspaper of general circulation in the district. The certificates may
be issued without an election unless within ten days of the publication a petition signed by the sum of at least ten
percent of the voters in the member towns voting in the last regular town election and ten percent of the voters of
the city voting in the last city general election requesting an election on their issuance is filed with the board. If a
petition is filed, the certificates may not be issued unless their issuance is approved by a majority of the voters at a
general or special
election in which all the residents of the city and member towns are eligible to vote. A tax levy shall be made against all property in the district to pay the principal and interest on the certificates, in accordance with Minnesota Statutes, section 475.61, as in the case of bonds.
EFFECTIVE DATE: Pursuant to Minnesota Statutes, section 645.023, subdivision 1, clause (a), this section is effective without local approval the day following final enactment.
Sec. 37. [EVELETH-GILBERT JOINT RECREATION BOARD TAX.]
The cities and towns who participate in the Eveleth-Gilbert joint recreation board may levy a tax on the taxable property within their taxing jurisdictions situated within the boundaries of independent school district No. 2154, Eveleth-Gilbert, as provided in this section. The maximum amount that may be levied by all participating cities and towns combined shall not exceed a total of $125,000 per year, for a maximum of eight years. Property within the school district may be made subject to the tax permitted by this section by the agreement of the governing body or town board of the city or town where the property is located. The agreement may be by resolution of a governing body or town board or by a joint powers agreement under Minnesota Statutes, section 471.59. If levied, this tax is in addition to all other taxes permitted to be levied for park and recreation purposes by the participating cities and towns. It shall be disregarded in the calculation of all tax levy limitations imposed by charter and any general overall levy limitations. A city or town may withdraw its agreement to future taxes by notice to the recreation board and the county auditor unless provided otherwise by a joint powers agreement. The tax shall be collected by the St. Louis county treasurer and paid directly to the Eveleth-Gilbert joint recreation board.
This section applies in the cities of Eveleth, Gilbert, Leonidas, McKinley, and Iron Junction, and in the towns of Biwabik, Clinton, and Fayal, all located in St. Louis county.
EFFECTIVE DATE: This section is effective for taxes payable in 2001 through taxes payable in 2008.
Sec. 38. [STUDY OF TAXATION OF FOREST LAND.]
Subdivision 1. [STUDY.] The commissioner of revenue, in cooperation with the Minnesota forest resources council, shall study the taxation of forest land in this state. The study shall include a review of the current application of property taxes to these lands and a review and comparison with other forest land tax policies. It shall also include recommendations for changes in tax policy:
(1) to encourage forest productivity;
(2) to maintain land in forest cover;
(3) to encourage the application of sustainable site level forest management guidelines;
(4) to address impacts on local government revenues; and
(5) for changes in tax rates.
The study shall be completed and transmitted to the chairs of the house and senate tax committees by December 1, 2000.
Subd. 2. [APPROPRIATION.] $50,000 is appropriated from the general fund in fiscal year 2000 to the commissioner of revenue for completion of the study required in this section. This appropriation is available until December 31, 2000.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 39. [APPROPRIATION.]
Notwithstanding section 16A.1521, the balance of the property tax reform account as of July 1, 2000, is transferred to the general fund and any additional funds appropriated to the property tax reform account as a result of the November, 1999, forecast are canceled and the appropriation remains in the general fund.
Sec. 40. [REPEALER.]
(a) Minnesota Statutes 1998, sections 270.072, subdivision 5; and 270.075, subdivisions 3 and 4; are repealed.
(b) Minnesota Statutes 1998, section 273.127, is repealed.
(c) Minnesota Statutes 1998, section 273.1316, is repealed.
EFFECTIVE DATE: Paragraph (a) is effective for taxes payable in 2001 and thereafter. Paragraph (b) is effective for taxes payable in 2000 and thereafter. Paragraph (c) is effective the day following final enactment.
Sec. 41. [EFFECTIVE DATE.]
Sections 20 to 24, 26, and 27 apply to all homeowners and all property taxes deferred beginning in payable 2001, including those homeowners who initially qualified under this program for taxes payable in 1999 or 2000, except that if a homeowner did not qualify for any property tax deferral for payable 2000 because of the percentage threshold in Minnesota Statutes, section 290B.03, subdivision 1, paragraph (6), or the prohibition on qualification of owners of property with delinquent taxes or delinquent special assessments, and now qualifies for the program with the changes in those provisions, the homeowner may apply to the commissioner by July 1, 2000, and request a retroactive qualification into the program for taxes payable in 2000. The commissioner of revenue shall notify the county auditor of such eligible taxpayers. The commissioner shall make payment to the county for the appropriate amount due for taxes payable in 2000, and the county treasurer shall refund the taxpayer for any excess tax amount that the taxpayer has paid to the county.
ARTICLE 6
LEVY LIMITS AND AIDS TO LOCAL GOVERNMENT
Section 1. Minnesota Statutes 1998, section 97A.061, is amended by adding a subdivision to read:
Subd. 4. [OFFSET OF PAYMENTS.] Payments to a county or town under this section must be reduced by the amount of payment to that county or town under section 477A.12 for the same lands in the same year.
EFFECTIVE DATE: This section is effective for payments made in calendar year 2001 and thereafter.
Sec. 2. Minnesota Statutes 1998, section 97A.061, is amended by adding a subdivision to read:
Subd. 5. [ALLOCATION OF PAYMENTS.] Notwithstanding section 477A.14, the amounts paid to a county under section 477A.14 for lands that are also subject to payment under this section shall be allocated within the county in accordance with subdivision 2.
EFFECTIVE DATE: This section is effective for payments made in calendar year 2001 and thereafter.
Sec. 3. Minnesota Statutes 1999 Supplement, section 273.1398, subdivision 4a, is amended to read:
Subd. 4a. [AID OFFSET FOR COURT COSTS.] (a) By July 15, 1999, the supreme court shall determine and certify to the commissioner of revenue for each county, other than counties located in the eighth judicial district, the county's share of the costs assumed under Laws 1999, chapter 216, article 7, during the fiscal year beginning July 1, 2000, less an amount equal to the county's share of transferred fines collected by the district courts in the county during calendar year 1998.
(b) Payments to a county under subdivision 2 or section 273.166 for calendar year 2000 must be permanently reduced by an amount equal to 75 percent of the net cost to the state for assumption of district court costs as certified in paragraph (a).
(c) Payments to a county under subdivision 2 or section 273.166 for calendar year 2001 must be permanently reduced by an amount equal to 25 percent of the net cost to the state for assumption of district court costs as certified in paragraph (a).
(d) Payments to a county under subdivision 2 for calendar year 2001 are permanently increased by an amount equal to 7.5 percent of the county's share of transferred fines collected by the district courts in the county during calendar year 1998, as determined under paragraph (a). If the amount determined in paragraph (a) exceeds the amount of aid a county is scheduled to be paid under subdivision 2 in 2000, then the county shall not receive an aid increase under this paragraph.
EFFECTIVE DATE: This section is effective for aids payable in 2001 and thereafter.
Sec. 4. Minnesota Statutes 1999 Supplement, section 275.70, subdivision 5, is amended to read:
Subd. 5. [SPECIAL LEVIES.] "Special levies" means those portions of ad valorem taxes levied by a local governmental unit for the following purposes or in the following manner:
(1) to pay the costs of the principal and interest on bonded indebtedness or to reimburse for the amount of liquor store revenues used to pay the principal and interest due on municipal liquor store bonds in the year preceding the year for which the levy limit is calculated;
(2) to pay the costs of principal and interest on certificates of indebtedness issued for any corporate purpose except for the following:
(i) tax anticipation or aid anticipation certificates of indebtedness;
(ii) certificates of indebtedness issued under sections 298.28 and 298.282;
(iii) certificates of indebtedness used to fund current expenses or to pay the costs of extraordinary expenditures that result from a public emergency; or
(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an insufficiency in other revenue sources;
(3) to provide for the bonded indebtedness portion of payments made to another political subdivision of the state of Minnesota;
(4) to fund payments made to the Minnesota state armory building commission under section 193.145, subdivision 2, to retire the principal and interest on armory construction bonds;
(5) for unreimbursed expenses related to flooding that occurred during the first half of calendar year 1997, as allowed by the commissioner of revenue under section 275.74, paragraph (b);
(6) for local units of government located in an area designated by the Federal Emergency Management Agency pursuant to a major disaster declaration issued for Minnesota by President Clinton after April 1, 1997, and before June 11, 1997, for the amount of tax dollars lost due to abatements authorized under section 273.123, subdivision 7, and Laws 1997, chapter 231, article 2, section 64, to the extent that they are related to the major disaster and to the extent that neither the state or federal government reimburses the local government for the amount lost;
(7) property taxes approved by voters which are levied against the referendum market value as provided under section 275.61;
(8) to fund matching requirements needed to qualify for federal or state grants or programs to the extent that either (i) the matching requirement exceeds the matching requirement in calendar year 1997, or (ii) it is a new matching requirement that didn't exist prior to 1998;
(9) to pay the expenses reasonably and necessarily incurred in preparing for or repairing the effects of natural disaster including the occurrence or threat of widespread or severe damage, injury, or loss of life or property resulting from natural causes, in accordance with standards formulated by the emergency services division of the state department of public safety, as allowed by the commissioner of revenue under section 275.74, paragraph (b);
(10) for the amount of tax revenue lost due to abatements authorized under section 273.123, subdivision 7, for damage related to the tornadoes of March 29, 1998, to the extent that neither the state or federal government provides reimbursement for the amount lost;
(11) pay amounts required to correct an error in the levy certified to the county auditor by a city or county in a levy year, but only to the extent that when added to the preceding year's levy it is not in excess of an applicable statutory, special law or charter limitation, or the limitation imposed on the governmental subdivision by sections 275.70 to 275.74 in the preceding levy year;
(12) to pay an abatement under section 469.1815;
(13) to pay the employer contribution to the local government correctional service retirement plan under section
353E.03, subdivision 2, to the extent that the employer contribution exceeds 5.49 percent of total salary; and
(14) to pay the operating or maintenance costs of a county jail as authorized in section 641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1, paragraph (5), to the extent that the county can demonstrate to the commissioner of revenue that the amount has been included in the county budget as a direct result of a rule, minimum requirement, minimum standard, or directive of the department of corrections, or to pay the operating or maintenance costs of a regional jail as authorized in section 641.262. For purposes of this clause, a district court order is not a rule, minimum requirement, minimum standard, or directive of the department of corrections. If the county utilizes this special levy, any amount levied by the county in the previous levy year for the purposes specified under this clause and included in the county's previous year's levy limitation computed under section 275.71, shall be deducted from the levy limit base under section 275.71, subdivision 2, when determining the county's current year levy limitation. The county shall provide the necessary information to the commissioner of revenue for making this determination; and
(15) to repay a state or federal loan used to fund the direct or indirect required spending by the local government due to a state or federal transportation project or other state or federal capital project. This authority may only be used if the project is not a local government initiative.
EFFECTIVE DATE: Minnesota Statutes, section 275.70, subdivision 5, as amended by this section, is effective beginning with taxes levied in 2000, payable in 2001 and thereafter, for any year in which general levy limits are imposed, notwithstanding Laws 1997, chapter 231, article 3, section 9, as amended by Laws 1999, chapter 243, article 6, section 10.
Sec. 5. Minnesota Statutes 1999 Supplement, section 275.71, subdivision 4, is amended to read:
Subd. 4. [PROPERTY TAX LEVY LIMIT.] For taxes levied in 1998 and 1999, the property tax levy
limit for a local governmental unit is equal to its adjusted levy limit base determined under subdivision 3 plus any
additional levy authorized under section 275.73, which is levied against net tax capacity, reduced by the sum of (1)
the total amount of aids that the local governmental unit is certified to receive under sections 477A.011 to 477A.014,
(2) homestead and agricultural aids it is certified to receive under section 273.1398, (3) local performance aid it is
certified to receive under section 477A.05, (4) taconite aids under sections 298.28 and 298.282 including any aid
which was required to be placed in a special fund for expenditure in the next succeeding year but excluding
amounts allocated under section 298.28, subdivision 2, paragraph (b), (5) flood loss aid under section 273.1383,
and (6) low-income housing aid under sections 477A.06 and 477A.065.
EFFECTIVE DATE: This section is effective for taxes levied in 1999, payable in 2000.
Sec. 6. Minnesota Statutes 1999 Supplement, section 477A.011, subdivision 36, is amended to read:
Subd. 36. [CITY AID BASE.] (a) Except as provided in paragraphs (b) to (k) (n), "city aid base"
means, for each city, the sum of the local government aid and equalization aid it was originally certified to receive
in calendar year 1993 under Minnesota Statutes 1992, section 477A.013, subdivisions 3 and 5, and the amount of
disparity reduction aid it received in calendar year 1993 under Minnesota Statutes 1992, section 273.1398,
subdivision 3.
(b) For aids payable in 1996 and thereafter, a city that in 1992 or 1993 transferred an amount from governmental funds to its sewer and water fund, which amount exceeded its net levy for taxes payable in the year in which the transfer occurred, has a "city aid base" equal to the sum of (i) its city aid base, as calculated under paragraph (a), and (ii) one-half of the difference between its city aid distribution under section 477A.013, subdivision 9, for aids payable in 1995 and its city aid base for aids payable in 1995.
(c) The city aid base for any city with a population less than 500 is increased by $40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $40,000 for aids payable in calendar year 1995 only, provided that:
(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
(ii) the city portion of the tax capacity rate exceeds 100 percent; and
(iii) its city aid base is less than $60 per capita.
(d) The city aid base for a city is increased by $20,000 in 1998 and thereafter and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:
(i) the city has a population in 1994 of 2,500 or more;
(ii) the city is located in a county, outside of the metropolitan area, which contains a city of the first class;
(iii) the city's net tax capacity used in calculating its 1996 aid under section 477A.013 is less than $400 per capita; and
(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of property located in the city is classified as railroad property.
(e) The city aid base for a city is increased by $200,000 in 1999 and thereafter and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:
(i) the city was incorporated as a statutory city after December 1, 1993;
(ii) its city aid base does not exceed $5,600; and
(iii) the city had a population in 1996 of 5,000 or more.
(f) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that:
(i) the city had a population in 1996 of at least 50,000;
(ii) its population had increased by at least 40 percent in the ten-year period ending in 1996; and
(iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.
(g) Beginning in 2002, the city aid base for a city is equal to the sum of its city aid base in 2001 and the amount of additional aid it was certified to receive under section 477A.06 in 2001. For 2002 only, the maximum amount of total aid a city may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by the amount it was certified to receive under section 477A.06 in 2001.
(h) The city aid base for a city is increased by $150,000 for aids payable in 2000 and thereafter, and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $150,000 in calendar year 2000 only, provided that:
(1) the city has a population that is greater than 1,000 and less than 2,500;
(2) its commercial and industrial percentage for aids payable in 1999 is greater than 45 percent; and
(3) the total market value of all commercial and industrial property in the city for assessment year 1999 is at least 15 percent less than the total market value of all commercial and industrial property in the city for assessment year 1998.
(i) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:
(1) the city had a population in 1997 of 2,500 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid under section 477A.013 is less than $650 per capita;
(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under section 477A.013 is greater than 12 percent;
(4) the 1999 local government aid of the city under section 477A.013 is less than 20 percent of the amount that the formula aid of the city would have been if the need increase percentage was 100 percent; and
(5) the city aid base of the city used in calculating aid under section 477A.013 is less than $7 per capita.
(j) The city aid base for a city is increased by $225,000 in calendar years 2000 to 2002 and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $225,000 in calendar year 2000 only, provided that:
(1) the city had a population of at least 5,000;
(2) its population had increased by at least 50 percent in the ten-year period ending in 1997;
(3) the city is located outside of the Minneapolis-St. Paul metropolitan statistical area as defined by the United States Bureau of the Census; and
(4) the city received less than $30 per capita in aid under section 477A.013, subdivision 9, for aids payable in 1999.
(k) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:
(1) the city has a population in 1997 of 2,000 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid under section 477A.013 is less than $455 per capita;
(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is greater than $195 per capita; and
(4) the 1999 local government aid of the city under section 477A.013 is less than 38 percent of the amount that the formula aid of the city would have been if the need increase percentage was 100 percent.
(l) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:
(1) the city has a population in 1998 that is greater than 200 but less than 500;
(2) the city's revenue need used in calculating aids payable in 2000 was greater than $200 per capita;
(3) the city net tax capacity for the city used in calculating aids available in 2000 was equal to or less than $200 per capita;
(4) the city aid base of the city used in calculating aid under section 477A.013 is less than $65 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than zero.
(m) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:
(1) the city had a population in 1998 that is greater than 200 but less than 500;
(2) the city's commercial industrial percentage used in calculating aids payable in 2000 was less than ten percent;
(3) more than 25 percent of the city's population was 60 years old or older according to the 1990 census;
(4) the city aid base of the city used in calculating aid under section 477A.013 is less than $15 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than zero.
(n) The city aid base for a city is increased by $45,000 in 2001 and thereafter, and the maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $45,000 in calendar year 2001 only, provided that:
(1) the net tax capacity of the city used in calculating its 2000 aid under section 477A.013 is less than $810 per capita;
(2) the population of the city declined more than two percent between 1988 and 1998;
(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is greater than $240 per capita; and
(4) the city received less than $36 per capita in aid under section 477A.013, subdivision 9, for aids payable in 2000.
EFFECTIVE DATE: This section is effective beginning with aids payable in 2001 and thereafter.
Sec. 7. Minnesota Statutes 1999 Supplement, section 477A.03, subdivision 2, is amended to read:
Subd. 2. [ANNUAL APPROPRIATION.] (a) A sum sufficient to discharge the duties imposed by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the commissioner of revenue.
(b) Aid payments to counties under section 477A.0121 are limited to $20,265,000 in 1996. Aid payments to counties under section 477A.0121 are limited to $27,571,625 in 1997. For aid payable in 1998 and thereafter, the total aids paid under section 477A.0121 are the amounts certified to be paid in the previous year, adjusted for inflation as provided under subdivision 3.
(c)(i) For aids payable in 1998 and thereafter, the total aids paid to counties under section 477A.0122 are the amounts certified to be paid in the previous year, adjusted for inflation as provided under subdivision 3.
(ii) Aid payments to counties under section 477A.0122 in 2000 are further increased by an additional $20,000,000 in 2000.
(d) Aid payments to cities in 1999 under section 477A.013, subdivision 9, are limited to $380,565,489. For aids
payable in 2000 and 2001, the total aids paid under section 477A.013, subdivision 9, are the amounts
certified to be paid in the previous year, adjusted for inflation as provided in subdivision 3, and increased by the
amount necessary to effectuate Laws 1999, chapter 243, article 5, section 48, paragraph (b). For aids payable in 2001
through 2003, the total aids paid under section 477A.013, subdivision 9, are the amounts certified to be paid
in the previous year, adjusted for inflation as provided under subdivision 3. For aids payable in 2002
2004, the total aids paid under section 477A.013, subdivision 9, are the amounts certified to be paid in the
previous year, adjusted for inflation as provided under subdivision 3, and increased by the amount certified to be paid
in 2001 2003 under section 477A.06. For aids payable in 2003 2005 and
thereafter, the total aids paid under section 477A.013, subdivision 9, are the amounts certified to be paid in the
previous year, adjusted for inflation as provided under subdivision 3. The additional amount authorized under
subdivision 4 is not included when calculating the appropriation limits under this paragraph.
EFFECTIVE DATE: This section is effective for aids payable in 2000 and thereafter.
Sec. 8. Minnesota Statutes 1999 Supplement, section 477A.06, subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY.] (a) For assessment years 1998, 1999, and 2000, 2001, and 2002,
for all class 4d property on which construction was begun before January 1, 1999, the assessor shall determine the
difference between the actual net tax capacity and the net tax capacity that would be determined for the property if
the class rates for assessment year 1997 were in effect.
(b) In calendar years 1999, 2000, and 2001, 2002, and 2003, each city shall be eligible for aid
equal to (i) the amount by which the sum of the differences determined in clause (a) for the corresponding assessment
year exceeds two percent of the city's total taxable net tax capacity for taxes payable in 1998, multiplied by (ii) the
city government's average local tax rate for taxes payable in 1998.
Sec. 9. Minnesota Statutes 1998, section 477A.06, subdivision 3, is amended to read:
Subd. 3. [APPROPRIATION; PAYMENT.] (a) The commissioner shall pay each city its qualifying aid amount
on or before July 20 of each year. An amount sufficient to pay the aid authorized under this section is appropriated
to the commissioner of revenue from the property tax reform account in fiscal years 2000 and 2001, and from the
general fund in fiscal year years 2002, 2003, and 2004.
(b) For fiscal years 2001 and 2002 through 2004, the amount of aid appropriated under this
section may not exceed $1,500,000 each year.
(c) If the total amount of aid that would otherwise be payable under the formula in this section exceeds the maximum allowed under paragraph (b), the amount of aid for each city is reduced proportionately to equal the limit.
Sec. 10. Minnesota Statutes 1998, section 477A.11, subdivision 1, is amended to read:
Subdivision 1. [TERMS.] For the purpose of Laws 1979, Chapter 303, Article 8, Sections 1 to 5
sections 477A.11 to 477A.145, the terms defined in this section have the meanings given them.
EFFECTIVE DATE: This section applies to payments made in calendar year 2001 and thereafter.
Sec. 11. Minnesota Statutes 1998, section 477A.12, is amended to read:
477A.12 [ANNUAL APPROPRIATIONS; LANDS ELIGIBLE; CERTIFICATION OF ACREAGE.]
(a) There is As an offset for expenses incurred by counties and towns in support of natural resources
lands, the following amounts are annually appropriated to the commissioner of natural resources from the
general fund for payment to counties within the state an amount equal to transfer to the commissioner
of revenue. The commissioner of revenue shall pay the transferred funds to counties as required by sections 477A.11
to 477A.145. The amounts are:
(1) for acquired natural resources land, $3, as adjusted for inflation under section 477A.145, multiplied
by the total number of acres of acquired natural resources land or, beginning July 1, 1996, at the county's
option three-fourths of one percent of the appraised value of all acquired natural resources land in the county,
whichever is greater;
(2) 75 cents, as adjusted for inflation under section 477A.145, multiplied by the number of acres of county-administered other natural resources land; and
(3) 37.5 cents, as adjusted for inflation under section 477A.145, multiplied by the number of acres of commissioner-administered other natural resources land located in each county as of July 1 of each year prior to the payment year.
(b) Lands for which payments in lieu are made pursuant to section 97A.061, subdivision 3, and Laws 1973, chapter 567, shall not be eligible for payments under this section. Each county auditor shall certify to the department of natural resources during July of each year prior to the payment year the number of acres of county-administered other natural resources land within the county. The department of natural resources may, in addition to the certification of acreage, require descriptive lists of land so certified. The commissioner of natural resources shall determine and certify to the commissioner of revenue by March 1 of the payment year:
(1) the number of acres and most recent appraised value of acquired natural resources land
and within each county;
(2) the number of acres of commissioner-administered natural resources land within each county; and
(3) the number of acres of county-administered other natural resources land within each county, based on the reports filed by each county auditor with the commissioner of natural resources.
The commissioner of revenue shall determine the distributions provided for in this section using the number of acres and appraised values certified by the commissioner of natural resources by March 1 of the payment year.
(c) For the purposes of this section, the appraised value of acquired natural resources land is the purchase price for the first five years after acquisition. The appraised value of acquired natural resources land received as a donation is the value determined for the commissioner of natural resources by a licensed appraiser, or the county assessor's estimated market value if no appraisal is done. The appraised value must be determined by the county assessor every five years after the land is acquired.
EFFECTIVE DATE: This section applies to payments made in calendar year 2001 and thereafter.
Sec. 12. Minnesota Statutes 1998, section 477A.13, is amended to read:
477A.13 [TIME OF PAYMENT, DEDUCTIONS.]
Payments to the counties shall of the amounts determined under section 477A.12 must be made
by the commissioner of revenue from the general fund during the month of July of the year next
following certification. There shall be deducted from amounts paid any amounts paid to a county or township during
the preceding year pursuant to sections 97A.061, subdivisions 1 and 2, and 272.68, subdivision 3, with respect to
the lands certified pursuant to section 477A.12 at the time provided in section 477A.015 for the first
installment of local government aid.
EFFECTIVE DATE: This section applies to payments made in calendar year 2001 and thereafter.
Sec. 13. Minnesota Statutes 1998, section 477A.14, is amended to read:
477A.14 [USE OF FUNDS.]
Forty Except as provided in section 97A.061, subdivision 5, 40 percent of the total payment to
the county shall be deposited in the county general revenue fund to be used to provide property tax levy reduction.
The remainder shall be distributed by the county in the following priority:
(a) 37.5 cents, as adjusted for inflation under section 477A.145, for each acre of county-administered other natural resources land shall be deposited in a resource development fund to be created within the county treasury for use in resource development, forest management, game and fish habitat improvement, and recreational development and maintenance of county-administered other natural resources land. Any county receiving less than $5,000 annually for the resource development fund may elect to deposit that amount in the county general revenue fund;
(b) From the funds remaining, within 30 days of receipt of the payment to the county, the county treasurer shall
pay each organized township 30 cents per, as adjusted for inflation under section 477A.145, for
each acre of acquired natural resources land and 7.5 cents per, as adjusted for inflation under
section 477A.145, for each acre of other natural resources land located within its boundaries. Payments for
natural resources lands not located in an organized township shall be deposited in the county general revenue fund.
Payments to counties and townships pursuant to this paragraph shall be used to provide property tax levy reduction,
except that of the payments for natural resources lands not located in an organized township, the county may allocate
the amount determined to be necessary for maintenance of roads in unorganized townships. Provided that, if the
total payment to the county pursuant to section 477A.12 is not sufficient to fully fund the distribution provided for
in this clause, the amount available shall be distributed to each township and the county general revenue fund on
a pro rata basis; and
(c) Any remaining funds shall be deposited in the county general revenue fund. Provided that, if the distribution to the county general revenue fund exceeds $35,000, the excess shall be used to provide property tax levy reduction.
EFFECTIVE DATE: This section applies to payments made in calendar year 2001 and thereafter.
Sec. 14. [477A.145] [INFLATION ADJUSTMENT.]
In 2001 and each year thereafter, the amounts required to be adjusted for inflation in sections 477A.12 and 477A.14 shall be increased to an amount equal to: (1) the amount before the inflation adjustment multiplied by (2) one plus the percentage increase in the implicit price deflator for government consumption expenditures and gross investment for state and local governments prepared by the Bureau of Economic Analysis of the United States Department of Commerce for the period indicated below:
(i) the period starting with the first quarter of 1994 and ending with the third quarter of the calendar year prior to the year in which aid is paid, provided that lands acquired by the state under chapter 84A that are designated as state parks, state recreation areas, scientific and natural areas, or wildlife management areas are included in the definition of acquired natural resource land under section 477A.11 for calculating payments in calendar year 2001 and thereafter;
(ii) otherwise the period starting with the first quarter of 1987 and ending with the third quarter of the calendar year prior to the year in which the aid is paid.
These adjusted amounts must be rounded to the nearest one-tenth of a cent.
EFFECTIVE DATE: This section applies to payments made in calendar year 2001 and thereafter.
Sec. 15. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, article 6, section 9, is amended to read:
Sec. 3. [TAX; PAYMENT OF EXPENSES.]
(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, must not be levied at a rate
that exceeds .0063 0.063 percent of taxable market value.
(b) .0048 0.048 percent of taxable market value of tax in paragraph (a) may be used only for
acquisition, betterment, and maintenance of the district's hospital and nursing home facilities and equipment, and
not for administrative or salary expenses.
(c) .0015 0.015 percent of taxable market value of the tax in paragraph (a) may be used solely
for the purpose of capital expenditures as it relates to ambulance acquisitions for the Cook ambulance service and
the Orr ambulance service and not for administrative or salary expenses.
The part of the levy referred to in paragraph (c) must be administered by the Cook Hospital and passed on directly to the Cook area ambulance service board and the city of Orr to be held in trust until funding for a new ambulance is needed by either the Cook ambulance service or the Orr ambulance service.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 16. Laws 1999, chapter 243, article 6, section 18, is amended to read:
Sec. 18. [EFFECTIVE DATE.]
Sections 3 to 6 and 10 are effective for taxes levied in 1999, and payable in 2000. Section 7 is effective the day following final enactment for taxes levied in 1999 and thereafter. Sections 8 and 17 are effective for taxes levied in 1999, payable in 2000, and thereafter.
The .0015 0.063 percent of market value levy described in section 9, paragraph (a), and the 0.015
percent of taxable market value levy described in section 9, paragraph (c), is are effective for the
cities of Cook and Orr and the counties of St. Louis and Koochiching for affected parts of those counties on January
1, 2000, to be requested for levies certified in the year 2000, with the first payment to be
received and taxes payable in 2001 and thereafter. The 0.048 percent market value levy
described in section 9, paragraph (b), is effective for the cities of Cook and Orr and the counties of St. Louis and
Koochiching for the affected parts of those counties on January 1, 1999, for levies certified in 1999 and taxes payable
in 2000 and thereafter.
EFFECTIVE DATE: This section is effective the day following final enactment.
Sec. 17. [CAPITOL REGION WATERSHED DISTRICT LEVY LIMIT.]
The capitol region watershed district managers may levy an annual ad valorem tax of 0.02418 percent of taxable market value or $200,000, whichever is less, under Minnesota Statutes, section 103D.905, subdivision 3, notwithstanding the maximum dollar limit for the administrative fund in that subdivision.
EFFECTIVE DATE: This section is effective for taxes levied in 2000, payable in 2001 and thereafter.
Sec. 18. [ADDITIONAL AID; LINCOLN COUNTY.]
Subdivision 1. [AID INCREASE.] For aids payable in 2000, Lincoln county shall receive an aid payment of up to $150,000 under this section. The entire amount of this additional aid shall be paid from the appropriation for reimbursement for court-ordered counsel under section 477A.0121, subdivision 4, with the December 26 payment of other aids paid under Minnesota Statutes, section 477A.015, and shall be equal to the estimated amount of the appropriation under Minnesota Statutes, section 477A.0121, subdivision 4, up to $150,000, that will not be spent for public defender costs under Minnesota Statutes, section 611.27, in fiscal year 2000.
For aids payable in 2001, Lincoln county shall receive an additional payment under this section of up to the difference between $150,000 and what the county received under this provision in the previous year. The entire amount of this additional aid shall be paid from the appropriation for reimbursement for court-ordered counsel under section 477A.0121, subdivision 4, with the December 26 payment of other aids paid under Minnesota Statutes, section 477A.015, and shall be equal to the estimated amount of the appropriation under Minnesota Statutes, section 477A.0121, subdivision 4, up to the limit determined in this paragraph, that will not be spent for public defender costs under Minnesota Statutes, section 611.27, in fiscal year 2001.
The county is not limited to the purposes listed in Minnesota Statutes, section 477A.015, for spending this aid and may pay a portion of this aid to Lake Benton township to reimburse the township for losses due to the Wind Tower lawsuit settlement. The aid under this section must not be included in calculating any aids or any limitations on levies or expenditures under law.
EFFECTIVE DATE: This section is effective the day after timely compliance by the governing body of Lincoln county and its chief clerical officer with Minnesota Statutes, section 645.021, subdivisions 2