1.1                          A bill for an act
  1.2             relating to state government; proposing an amendment 
  1.3             to the Minnesota Constitution, article V, sections 1, 
  1.4             3, and 4; article VIII, section 2; article XI, 
  1.5             sections 7 and 8; abolishing the office of state 
  1.6             treasurer; transferring or repealing the powers, 
  1.7             responsibilities, and duties of the state treasurer; 
  1.8             amending Minnesota Statutes 1996, sections 9.011, 
  1.9             subdivision 1; and 11A.03. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1
  1.12    CONSTITUTIONAL AMENDMENT; STATE TREASURER'S OFFICE ABOLISHED
  1.13     Section 1.  [CONSTITUTIONAL AMENDMENT.] 
  1.14     An amendment to the Minnesota Constitution is proposed to 
  1.15  the people.  If the amendment is adopted, article V, section 1, 
  1.16  will read: 
  1.17     Section 1.  The executive department consists of a 
  1.18  governor, lieutenant governor, secretary of state, auditor, 
  1.19  treasurer and attorney general, who shall be chosen by the 
  1.20  electors of the state.  The governor and lieutenant governor 
  1.21  shall be chosen jointly by a single vote applying to both 
  1.22  offices in a manner prescribed by law. 
  1.23     article V, section 3, will read: 
  1.24     Sec. 3.  The governor shall communicate by message to each 
  1.25  session of the legislature information touching the state and 
  1.26  country.  He is commander-in-chief of the military and naval 
  1.27  forces and may call them out to execute the laws, suppress 
  2.1   insurrection and repel invasion.  He may require the opinion in 
  2.2   writing of the principal officer in each of the executive 
  2.3   departments upon any subject relating to his duties.  With the 
  2.4   advice and consent of the senate he may appoint notaries public 
  2.5   and other officers provided by law.  He may appoint 
  2.6   commissioners to take the acknowledgment of deeds or other 
  2.7   instruments in writing to be used in the state.  He shall take 
  2.8   care that the laws be faithfully executed.  He shall fill any 
  2.9   vacancy that may occur in the offices of secretary of state, 
  2.10  treasurer, auditor, attorney general and the other state and 
  2.11  district offices hereafter created by law until the end of the 
  2.12  term for which the person who had vacated the office was elected 
  2.13  or the first Monday in January following the next general 
  2.14  election, whichever is sooner, and until a successor is chosen 
  2.15  and qualified. 
  2.16     article V, section 4, will read: 
  2.17     Sec. 4.  The term of office of the secretary of state, 
  2.18  treasurer, attorney general and state auditor is four years and 
  2.19  until a successor is chosen and qualified.  The duties and 
  2.20  salaries of the executive officers shall be prescribed by law. 
  2.21     article VIII, section 2, will read: 
  2.22     Sec. 2.  The governor, secretary of state, treasurer, 
  2.23  auditor, attorney general and the judges of the supreme court, 
  2.24  court of appeals and district courts may be impeached for 
  2.25  corrupt conduct in office or for crimes and misdemeanors; but 
  2.26  judgment shall not extend further than to removal from office 
  2.27  and disqualification to hold and enjoy any office of honor, 
  2.28  trust or profit in this state.  The party convicted shall also 
  2.29  be subject to indictment, trial, judgment and punishment 
  2.30  according to law. 
  2.31     article XI, section 7, will read: 
  2.32     Sec. 7.  Public debt other than certificates of 
  2.33  indebtedness authorized in section 6 shall be evidenced by the 
  2.34  issuance of bonds of the state.  All bonds issued under the 
  2.35  provisions of this section shall mature not more than 20 years 
  2.36  from their respective dates of issue and each law authorizing 
  3.1   the issuance of bonds shall distinctly specify the purposes 
  3.2   thereof and the maximum amount of the proceeds authorized to be 
  3.3   expended for each purpose.  The state treasurer shall maintain A 
  3.4   separate and special state bond fund shall be maintained on his 
  3.5   the official books and records.  When the full faith and credit 
  3.6   of the state has been pledged for the payment of bonds, the 
  3.7   state auditor shall levy each year on all taxable property 
  3.8   within the state a tax sufficient with the balance then on hand 
  3.9   in the fund to pay all principal and interest on bonds issued 
  3.10  under this section due and to become due within the ensuing year 
  3.11  and to and including July 1 in the second ensuing year.  The 
  3.12  legislature by law may appropriate funds from any source to the 
  3.13  state bond fund.  The amount of money actually received and on 
  3.14  hand pursuant to appropriations prior to the levy of the tax in 
  3.15  any year shall be used to reduce the amount of tax otherwise 
  3.16  required to be levied. 
  3.17     and article XI, section 8, will read: 
  3.18     Sec. 8.  The permanent school fund of the state consists of 
  3.19  (a) the proceeds of lands granted by the United States for the 
  3.20  use of schools within each township, (b) the proceeds derived 
  3.21  from swamp lands granted to the state, (c) all cash and 
  3.22  investments credited to the permanent school fund and to the 
  3.23  swamp land fund, and (d) all cash and investments credited to 
  3.24  the internal improvement land fund and the lands therein.  No 
  3.25  portion of these lands shall be sold otherwise than at public 
  3.26  sale, and in the manner provided by law.  All funds arising from 
  3.27  the sale or other disposition of the lands, or income accruing 
  3.28  in any way before the sale or disposition thereof, shall be 
  3.29  credited to the permanent school fund.  Within limitations 
  3.30  prescribed by law, the fund shall be invested to secure the 
  3.31  maximum return consistent with the maintenance of the perpetuity 
  3.32  of the fund. The principal of the permanent school fund shall be 
  3.33  perpetual and inviolate forever.  This does not prevent the sale 
  3.34  of investments at less than the cost to the fund; however, all 
  3.35  losses not offset by gains shall be repaid to the fund from the 
  3.36  interest and dividends earned thereafter.  The net interest and 
  4.1   dividends arising from the fund shall be distributed to the 
  4.2   different school districts of the state in a manner prescribed 
  4.3   by law. 
  4.4      A board of investment consisting of the governor, the state 
  4.5   auditor, the state treasurer, the secretary of state, and the 
  4.6   attorney general is hereby constituted for the purpose of 
  4.7   administering and directing the investment of all state funds.  
  4.8   The board shall not permit state funds to be used for the 
  4.9   underwriting or direct purchase of municipal securities from the 
  4.10  issuer or the issuer's agent. 
  4.11     Sec. 2.  [TRANSITION.] 
  4.12     If the proposed amendment is adopted, the office of 
  4.13  treasurer will be abolished on the first Monday in January 2001. 
  4.14     Sec. 3.  [SCHEDULE AND QUESTION.] 
  4.15     The proposed amendment shall be submitted at the 1998 
  4.16  general election.  If approved, the office of treasurer will be 
  4.17  abolished on the first Monday in January 2001.  The question 
  4.18  proposed shall be: 
  4.19     "Shall the Minnesota Constitution be amended to abolish the 
  4.20  office of state treasurer? 
  4.21                                     Yes .......
  4.22                                     No ........"
  4.23                             ARTICLE 2
  4.24                   TRANSFER OF POWERS AND DUTIES
  4.25     Section 1.  [POWERS AND DUTIES TRANSFERRED.] 
  4.26     The powers, duties, and responsibilities assigned by 
  4.27  statute to the state treasurer are transferred to the 
  4.28  commissioner of finance under Minnesota Statutes, section 15.039.
  4.29     Sec. 2.  Minnesota Statutes 1996, section 9.011, 
  4.30  subdivision 1, is amended to read: 
  4.31     Subdivision 1.  [MEMBERS.] The executive council consists 
  4.32  of the governor, lieutenant governor, secretary of state, state 
  4.33  auditor, state treasurer, and attorney general.  The governor is 
  4.34  chair.  
  4.35     Sec. 3.  Minnesota Statutes 1996, section 11A.03, is 
  4.36  amended to read: 
  5.1      11A.03 [STATE BOARD; MEMBERSHIP; ORGANIZATION.] 
  5.2      Pursuant to article XI, section 8, of the Constitution of 
  5.3   the state of Minnesota, the state board shall be composed of the 
  5.4   governor, state auditor, state treasurer, secretary of state and 
  5.5   attorney general.  The governor shall serve as ex officio chair 
  5.6   of the state board.  
  5.7      Sec. 4.  [EFFECTIVE DATE.] 
  5.8      Sections 1 to 3 are effective on the first Monday in 
  5.9   January 2001 if the amendment proposed under article 1 has been 
  5.10  adopted.