1.1                          A bill for an act 
  1.2             relating to the financing of state government; 
  1.3             authorizing the issuance of revenue bonds and the 
  1.4             appropriation of bond proceeds to pay a judgment; 
  1.5             appropriating net proceeds of the lottery, health care 
  1.6             reimbursement revenues, and certain license fees, 
  1.7             service fees, and charges for payment of debt service; 
  1.8             amending Minnesota Statutes 1994, sections 246.18, 
  1.9             subdivision 4, and by adding subdivisions; and 
  1.10            349A.10, subdivision 5; proposing coding for new law 
  1.11            in Minnesota Statutes, chapter 16A. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [16A.67] [JUDGMENT BONDS.] 
  1.14     Subdivision 1.  [AUTHORIZATION.] The commissioner of 
  1.15  finance, upon request of the governor, is authorized to sell and 
  1.16  issue state bonds to fund the judgment rendered against the 
  1.17  state by the Minnesota supreme court in Cambridge State Bank et. 
  1.18  al. v. James, 514 N.W. 2d 565, on April 1, 1994, and interest 
  1.19  accrued thereon to fund any bond reserve determined to be 
  1.20  necessary, and to pay costs of issuance of the bonds.  The 
  1.21  proceeds of the bonds are appropriated for these purposes.  The 
  1.22  principal amount of the bonds shall not exceed $400,000,000.  
  1.23  The bonds shall be sold and issued upon such terms and in such 
  1.24  manner as the commissioner shall determine to be in the best 
  1.25  interests of the state.  The final maturity of the bonds shall 
  1.26  be not later than June 30, 2005. 
  1.27     Subd. 2.  [SECURITY; BONDS NOT PUBLIC DEBT.] The bonds and 
  1.28  the interest thereon shall be payable solely from and secured by 
  2.1   the revenues appropriated to the debt service fund established 
  2.2   for this purpose in subdivision 3 and investment income thereon, 
  2.3   and any bond reserve established for the bonds.  The bonds are 
  2.4   not public debt, and the full faith, credit, and taxing powers 
  2.5   of the state are not pledged for their payment.  The bonds and 
  2.6   the interest thereon shall not be paid, directly or indirectly, 
  2.7   in whole or in part, from a tax of statewide application on any 
  2.8   class of property, income, transaction, or privilege. 
  2.9      Subd. 3.  [DEBT SERVICE FUND.] There is established in the 
  2.10  state treasury a separate and special debt service fund.  There 
  2.11  shall be credited to the fund net proceeds of the lottery in 
  2.12  accordance with section 349A.10, subdivision 5, money received 
  2.13  for payment or reimbursement of health care costs in accordance 
  2.14  with section 246.18, subdivision 7, state license and service 
  2.15  fees as defined in section 6, and investment income thereon.  
  2.16  Money appropriated to the fund and investment income thereon on 
  2.17  hand or required to be credited to the fund shall be used and 
  2.18  are irrevocably appropriated for the payment of the principal of 
  2.19  and interest on the bonds when due.  
  2.20     Subd. 4.  [COVENANTS; AGREEMENTS.] The commissioner may, 
  2.21  for and on behalf of the state, enter into such covenants and 
  2.22  agreements not inconsistent with subdivisions 1 to 3 and 
  2.23  sections 246.18, subdivisions 4 and 6; and 349A.10, subdivision 
  2.24  5, as may be necessary or desirable to facilitate the sale and 
  2.25  issuance of the bonds on terms favorable to the state, 
  2.26  including, but not limited to, covenants and agreements relating 
  2.27  to the payment of and security for the bonds, tax-exemption, and 
  2.28  disclosure of information required by federal and state 
  2.29  securities laws.  Such covenants may not include covenants to 
  2.30  continue to operate the state lottery but may include covenants 
  2.31  to continue to seek payment by and reimbursement from nonstate 
  2.32  sources of health care costs so long as any bonds issued 
  2.33  pursuant to this section are outstanding.  The provisions of 
  2.34  sections 16A.672 and 16A.675 are applicable to the bonds. 
  2.35     Sec. 2.  Minnesota Statutes 1994, section 246.18, 
  2.36  subdivision 4, is amended to read: 
  3.1      Subd. 4.  [COLLECTIONS DEPOSITED IN THE GENERAL FUND.] 
  3.2   Except as provided in subdivisions 2 and 5, 6, and 7, all 
  3.3   receipts from collection efforts for the regional treatment 
  3.4   centers, state nursing homes, and other state facilities as 
  3.5   defined in section 246.50, subdivision 3, must be deposited in 
  3.6   the general fund.  The commissioner shall ensure that the 
  3.7   departmental financial reporting systems and internal accounting 
  3.8   procedures comply with federal standards for reimbursement for 
  3.9   program and administrative expenditures and fulfill the purpose 
  3.10  of this paragraph. 
  3.11     Sec. 3.  Minnesota Statutes 1994, section 246.18, is 
  3.12  amended by adding a subdivision to read: 
  3.13     Subd. 6.  [COLLECTIONS DEDICATED.] Except for 
  3.14  state-operated programs and services funded through a direct 
  3.15  appropriation from the legislature, money received within the 
  3.16  regional treatment center system for the following 
  3.17  state-operated services is dedicated to the commissioner for the 
  3.18  provision of those services: 
  3.19     (1) community-based residential and day training and 
  3.20  habilitation services for mentally retarded persons; 
  3.21     (2) community health clinic services; 
  3.22     (3) accredited hospital outpatient department services; 
  3.23     (4) certified rehabilitation agency and rehabilitation 
  3.24  hospital services; or 
  3.25     (5) community-based transitional support services for 
  3.26  adults with serious and persistent mental illness. 
  3.27     This money must be deposited in the state treasury in a 
  3.28  revolving account and money in the revolving account is 
  3.29  appropriated to the commissioner to operate the services 
  3.30  authorized.  Any unexpended balances do not cancel but are 
  3.31  available until spent. 
  3.32     Sec. 4.  Minnesota Statutes 1994, section 246.18, is 
  3.33  amended by adding a subdivision to read: 
  3.34     Subd. 7.  [USE OF CERTAIN REIMBURSEMENT FUNDS.] Except as 
  3.35  provided in subdivisions 2, 5, and 6, and unless otherwise 
  3.36  required by federal law, during any period in which bonds are 
  4.1   issued and outstanding under section 16A.67, all money received 
  4.2   from the federal government or other nonstate source for payment 
  4.3   or reimbursement of health care costs incurred at regional 
  4.4   treatment centers, state nursing homes, and other state 
  4.5   facilities as defined in section 246.50, subdivision 3, must be 
  4.6   credited to a separate and special fund in the state treasury.  
  4.7   Money credited to the special fund must be credited to the debt 
  4.8   service fund established in section 16A.67 at the times and in 
  4.9   the amounts determined by order of the commissioner of finance 
  4.10  to be necessary to provide for the payment and security of bonds 
  4.11  issued pursuant to section 16A.67.  On or after the tenth day of 
  4.12  each month, any money in the special fund not required to be 
  4.13  credited to the debt service fund must be credited to the 
  4.14  general fund. 
  4.15     Sec. 5.  Minnesota Statutes 1994, section 349A.10, 
  4.16  subdivision 5, is amended to read: 
  4.17     Subd. 5.  [DEPOSIT OF NET PROCEEDS.] Within 30 days after 
  4.18  the end of each month, the director shall deposit in the state 
  4.19  treasury the net proceeds of the lottery, which is the balance 
  4.20  in the lottery fund after transfers to the lottery prize fund 
  4.21  and credits to the lottery operations account.  Of the net 
  4.22  proceeds, (1) 40 percent must be credited to the Minnesota 
  4.23  environment and natural resources trust fund, (2) an amount 
  4.24  determined by order of the commissioner of finance to be 
  4.25  necessary to provide for the payment and security of bonds 
  4.26  issued pursuant to section 16A.67 must be credited to the debt 
  4.27  service fund established in section 16A.67, and (3) the 
  4.28  remainder must be credited to the general fund. 
  4.29     Sec. 6.  [DEPOSIT OF CERTAIN STATE LICENSE FEES, SERVICE 
  4.30  FEES, AND CHARGES.] 
  4.31     Subdivision 1.  For purposes of Minnesota Statutes, section 
  4.32  16A.67, subdivision 3, and this section, the term "state license 
  4.33  and service fees" means, and refers to, all license fees, 
  4.34  service fees, and charges imposed by law and collected by any 
  4.35  state officer, agency, or employee, which are listed below and 
  4.36  which are not required to be credited or transferred to a fund 
  5.1   other than the general fund:  
  5.2      Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 
  5.3   5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 
  5.4   16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 
  5.5   18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 
  5.6   and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 
  5.7   35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 
  5.8   46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 
  5.9   47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 
  5.10  subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 
  5.11  7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, 
  5.12  subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, 
  5.13  subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 
  5.14  55.04, subdivision 2; 55.095; 56.04; 56.02; 56.10; 59A.03, 
  5.15  subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 
  5.16  2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, 
  5.17  subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 
  5.18  79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 
  5.19  7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 
  5.20  1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 
  5.21  subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 
  5.22  2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 
  5.23  subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 
  5.24  subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 
  5.25  83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 
  5.26  2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 
  5.27  subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 
  5.28  subdivision 9; 155A.045, subdivisions 1 and 2; 155A.16; 168.27, 
  5.29  subdivision 11; 168.33, subdivisions 3 and 7; 168.54; 168.67; 
  5.30  168.705; 168A.152; 168A.29; 169.345; 171.06, subdivision 2a; 
  5.31  171.29, subdivision 2; 176.102; 176.1351; 176.181, subdivision 
  5.32  2a; 177.30; 181A.12; 183.545; 183.57; 184.28; 184.29; 184A.09; 
  5.33  201.091, subdivision 5; 204B.11; 207A.02; 214.06; 216C.261; 
  5.34  221.0355; 239.101; 240.06; 240.07; 240.08; 240.09; 240.10; 
  5.35  246.51; 270.69, subdivision 2; 270A.07; 272.484; 296.06; 296.12; 
  5.36  296.17; 297.04; 297.33; 299C.46; 299C.62; 299K.09; 299K.095; 
  6.1   299L.07; 299M.04; 300.49; 318.02; 323.44, subdivision 4; 
  6.2   325D.415; 326.22; 326.3331; 326.47; 326.50; 326.92, subdivisions 
  6.3   1 and 3; 327.33; 331A.02; 332.15, subdivisions 2 and 3; 332.17; 
  6.4   332.22, subdivision 1; 332.33, subdivisions 3 and 4; 332.54, 
  6.5   subdivision 7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 
  6.6   336A.05; 336A.09; 345.35; 345.43, subdivision 1; 345.44; 345.55, 
  6.7   subdivision 3; 347.33; 349.151; 349.161; 349.162; 349.163; 
  6.8   349.164; 349.165; 349.166; 349.167; 357.08; 359.01, subdivision 
  6.9   3; 360.018; 360.63; 386.68; and 414.01, subdivision 11; 
  6.10  Minnesota Statutes 1994, chapters 154; 216B; 237; 302A; 303; 
  6.11  308A; 317A; 322A; and 322B; Laws 1990, chapter 593; Laws 1993, 
  6.12  chapter 254, section 7; and Laws 1994, chapter 573, section 5; 
  6.13  Minnesota Rules, parts 1800.0500; 1950.1070; 2100.9300; 
  6.14  7515.0210; and 9545.2000 to 9545.2040. 
  6.15     Subd. 2.  All state license and service fees must be 
  6.16  remitted to the commissioner of finance and must be credited to 
  6.17  a separate and special fund in the state treasury.  Money 
  6.18  credited to the special fund must be credited to the debt 
  6.19  service fund established in Minnesota Statutes, section 16A.67, 
  6.20  at the times and in the amounts determined by order of the 
  6.21  commissioner of finance to be necessary to provide for the 
  6.22  payment and security of bonds issued pursuant to Minnesota 
  6.23  Statutes, section 16A.67.  Any money in the special fund not 
  6.24  required to be credited to the debt service fund must be 
  6.25  credited to the general fund. 
  6.26     Subd. 3.  If any state license or service fee described in 
  6.27  subdivision 1 is determined by the attorney general or a court 
  6.28  of competent jurisdiction to be a tax, the provisions of 
  6.29  subdivisions 1 and 2 no longer apply to it. 
  6.30     Sec. 7.  [EFFECTIVE DATE.] 
  6.31     Sections 1 to 6 are effective the day following final 
  6.32  enactment.