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Key: (1) language to be deleted (2) new language

 

                         Laws of Minnesota 1985 

                         CHAPTER 16-S.F.No. 25 
           An act relating to statutes; conforming various laws 
          to judicial decisions of unconstitutionality and 
          suggestions for clarity; correcting various 
          legislative enactments; amending Minnesota Statutes 
          1984, sections 3.736, subdivision 3; 47.20, 
          subdivision 15, as amended; 49.05, subdivision 6, if 
          added; 60A.11, subdivision 21; 121.912, if amended; 
          152.19, subdivision 5, as amended; 160.25, subdivision 
          3, as amended; 164.06, as amended; 181.13; 290.01, 
          subdivision 20f; 290.091; 365.37, as amended; 429.061, 
          subdivision 1; 444.075, subdivisions 1, as amended, 
          and 1a, as added; 559.21, subdivision 6, as amended; 
          580.031, as amended; 609.531, subdivision 6, as 
          amended; and 631.09; Laws 1979, chapter 280, section 
          2, subdivision 2, as amended; Laws 1984, chapter 502, 
          article 9, section 5; Laws 1985, chapters 37, section 
          2; 152, section 1, subdivision 1; 172, sections 74, 
          subdivisions 4, 5, and 7; 80, by adding a subdivision; 
          217, section 7; 225, section 1, subdivision 2; 259, 
          sections 6 and 8; 261, sections 31 and 38; and 305, 
          article 12, section 5; House File Nos. 3, article 3, 
          section 28, subdivisions 2, if enacted, and 4, if 
          enacted; article 5, section 1, subdivision 6, if 
          enacted; article 8, section 63, subdivision 3, if 
          enacted and section 66, if enacted; article 11, 
          section 3, subdivision 1, if enacted;  section 21, 
          subdivision 3, if enacted; section 23, subdivision 2, 
          if enacted; 10, article 9, section 77, if enacted; 16, 
          and section 37, subdivision 1, of the first special 
          session; repealing Minnesota Statutes 1984, section 
          15A.081, subdivision 7a, if added; Laws 1985, chapters 
          102, section 2; 248, section 85; House File Nos. 5, 
          section 13, if enacted; and 16, section 230, of the 
          first special session.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1 

                               CONFORMITY 
    Section 1.  Minnesota Statutes 1984, section 3.736, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCLUSIONS.] Without intent to preclude the 
courts from finding additional cases where the state and its 
employees should not, in equity and good conscience, pay 
compensation for personal injuries or property losses, the 
legislature declares that the state and its employees are not 
liable for the following losses: 
    (a) Any loss caused by an act or omission of a state 
employee exercising due care in the execution of a valid or 
invalid statute or regulation; 
    (b) Any loss caused by the performance or failure to 
perform a discretionary duty, whether or not the discretion is 
abused; 
    (c) Any loss in connection with the assessment and 
collection of taxes; 
    (d) Any loss caused by snow or ice conditions on any 
highway or other public place, except when the condition is 
affirmatively caused by the negligent acts of a state employee; 
    (e) Any loss caused by wild animals in their natural state; 
    (f) Any loss other than injury to or loss of property or 
personal injury or death; 
    (g) Any loss caused by the condition of unimproved real 
property owned by the state, which means land that the state has 
not improved, and appurtenances, fixtures and attachments to 
land that the state has neither affixed nor improved; 
    (h) Any loss incurred by a user within the boundaries of 
the outdoor recreation system and arising from the construction, 
operation, or maintenance of the outdoor recreation system, as 
defined in section 86A.04, or from the clearing of land, removal 
of refuse, and creation of trails or paths without artificial 
surfaces, except that the state is liable for conduct that would 
entitle a trespasser to damages against a private person. 
    (i) Any loss of benefits or compensation due under a 
program of public assistance or public welfare, except where 
state compensation for loss is expressly required by federal law 
in order for the state to receive federal grants-in-aid; 
    (j) Any loss based on the failure of any person to meet the 
standards needed for a license, permit, or other authorization 
issued by the state or its agents; 
    (k) Any loss based on the usual care and treatment, or lack 
of care and treatment, of any person at a state hospital or 
state corrections facility where reasonable use of available 
appropriations has been made to provide care; 
    (l) Any loss, damage, or destruction of property of a 
patient or inmate of a state institution;  
    (m) Any loss for which recovery is prohibited by section 
169.121, subdivision 9. 
    The state will not pay punitive damages. 
    Sec. 2.  Minnesota Statutes 1984, section 181.13, is 
amended to read: 
    181.13 [PENALTY FOR FAILURE TO PAY WAGES PROMPTLY.] 
    When any person, firm, company, association, or corporation 
employing labor within this state discharges a servant or 
employee, the wages or commissions actually earned and unpaid at 
the time of the discharge shall become immediately due and 
payable upon demand of the employee.  If the employee's earned 
wages and commissions are not paid within 24 hours after such 
demand, whether the employment was by the day, hour, week, 
month, or piece or by commissions, the discharged employee may 
charge and collect the amount of his or her average daily 
earnings at the rate agreed upon in the contract of employment, 
for such period, not exceeding 15 days, after the expiration of 
the 24 hours, as the employer is in default, until full payment 
or other settlement, satisfactory to the discharged employee, is 
made.  In the case of a public employer where approval of 
expenditures by a governing board is required, the 24-hour 
period for payment shall not commence until the date of the 
first regular or special meeting of the governing board 
following discharge of the employee.  The wages and commissions 
must be paid at the usual place of payment unless the employee 
requests that the wages and commissions be sent to him or her 
through the mails.  If, in accordance with a request by the 
employee, the employee's wages and commissions are sent to the 
employee through the mail, the wages and commissions shall be 
deemed to have been paid as of the date of their postmark for 
the purposes of this section.  
    Sec. 3.  Minnesota Statutes 1984, section 429.061, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CALCULATION, NOTICE.] At any time after 
the expense incurred or to be incurred in making an improvement 
shall be calculated under the direction of the council, the 
council shall determine by resolution the amount of the total 
expense the municipality will pay, other than the amount, if 
any, which it will pay as a property owner, and the amount to be 
assessed.  If a county proposes to assess within the boundaries 
of a city for a county state-aid highway or county highway, the 
resolution must include the portion of the cost proposed to be 
assessed within the city.  The county shall forward the 
resolution to the city and it may not proceed with the 
assessment procedure under this section for property within the 
city unless the city council adopts a resolution approving the 
assessment.  Thereupon the clerk, with the assistance of the 
engineer or other qualified person selected by the council, 
shall calculate the proper amount to be specially assessed for 
the improvement against every assessable lot, piece or parcel of 
land, without regard to cash valuation, in accordance with the 
provisions of section 429.051.  The proposed assessment roll 
shall be filed with the clerk and be open to public inspection.  
The clerk shall thereupon, under the council's direction, 
publish notice that the council will meet to consider the 
proposed assessment.  Such notice shall be published in the 
newspaper at least once and shall be mailed to the owner of each 
parcel described in the assessment roll.  For the purpose of 
giving mailed notice under this subdivision, owners shall be 
those shown to be such 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.  Such 
publication and mailing shall be no less than two weeks prior to 
such meeting of the council.  Except as to the owners of tax 
exempt property or property taxes on a gross earnings basis, 
every property owner whose name does not appear on the records 
of the county auditor or the county treasurer shall be deemed to 
have waived such mailed notice unless he has requested in 
writing that the county auditor or county treasurer, as the case 
may be, include his name on the records for such purpose.  Such 
notice shall state the date, time, and place of such meeting, 
the general nature of the improvement, the area proposed to be 
assessed, the amount to be specially assessed against that 
particular lot, piece, or parcel of land, that the proposed 
assessment roll is on the file with the clerk, and that written 
or oral objections thereto by any property owner will be 
considered.  No appeal may be taken as to the amount of any 
assessment adopted pursuant to subdivision 2, unless a written 
objection signed by the affected property owner is filed with 
the municipal clerk prior to the assessment hearing or presented 
to the presiding officer at the hearing.  The notice shall also 
state that an owner may appeal an assessment to district court 
pursuant to section 429.081 by serving notice of the appeal upon 
the mayor or clerk of the municipality within 30 days after the 
adoption of the assessment and filing such notice with the 
district court within ten days after service upon the mayor or 
clerk.  The notice shall also inform property owners of the 
provisions of sections 435.193 to 435.195 and the existence of 
any deferment procedure established pursuant thereto in the 
municipality. 
    Sec. 4.  Minnesota Statutes 1984, section 631.09, is 
amended to read: 
    631.09 [JURY; HOW AND WHERE KEPT WHILE DELIBERATING; 
SEPARATE ACCOMMODATIONS FOR JURORS.] 
    After hearing the charge the jury may either decide in 
court, or retire for deliberation, if it shall not agree without 
retiring, one or more officers shall be sworn to take charge of 
it, and it shall be kept together in some private and convenient 
place, without food or drink except water, unless otherwise 
ordered by the court, and no person shall be permitted to speak 
to or communicate with it or any one of its number unless by 
order of court, nor listen to the deliberations; and it shall be 
returned into court when agreed, or when so ordered by the 
court.  In case of mixed juries counties shall provide adequate, 
separate quarters for male and female jurors with proper 
accommodations and, in the event the county fails to provide 
proper accommodations, the court shall order the jurors kept in 
a suitable hotel for the night. 
    This section applies only in cases where the jury has 
failed to agree. 

                               ARTICLE 2 

                              CORRECTIONS 
    Section 1.  EFFECT OF AMENDMENTS AND REPEALS. 
    Subdivision 1.  [CONFLICTS; PREVAILING LAW.] Regardless of 
the order of final enactment of this article and the acts it 
amends, the amendments or repeals in this article shall be given 
effect.  Notwithstanding Minnesota Statutes, sections 645.26, 
subdivision 3, 645.33, or other law, an amendment in this 
article shall prevail over any other act amending the same 
provisions of law in an irreconcilable manner. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following its final enactment. 
    Sec. 2.  [CORRECTION.] Subdivision 1.  [INCORRECT 
REFERENCE.] Laws 1985, chapter 37, section 2, is amended to read:
    Sec. 2.  [LOCAL APPROVAL.] 
    Section 1 is effective upon approval by the Roseville city 
council and compliance with Minnesota Statutes, section 654.021 
645.021. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactively to April 30, 1985. 
    Sec. 3.  [CORRECTION.] Subdivision 1.  [CHAPTER 340 
RECODIFICATION; INSTRUCTION TO REVISOR.] If a provision in 
Minnesota Statutes, chapter 340 is amended by the 1985 regular 
session and H.F. No. 1145 is enacted by the 1985 regular session 
the revisor shall codify the amendment consistent with the 
recodification of chapter 340 by H.F. No. 1145 notwithstanding 
any law to the contrary. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following its final enactment. 
    Sec. 4.  [CORRECTION.] Subdivision 1.  [NUMBER OF BOARD 
MEMBERS INCORRECTLY ADDED.] Laws 1985, chapter 152, section 1, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION AND MEMBERSHIP.] The board of 
governors of the Big Island Veterans Camp - Lake Minnetonka 
supervises and manages the camp.  The board consists of nine 
eight members.  Two members each are appointed by the state 
level organization of the American Legion, the Disabled American 
Veterans, the Military Order of the Purple Heart, and the 
Veterans of Foreign Wars provided that at least two appointees 
are Vietnam veterans.  The commissioner of veterans affairs or 
the commissioner's designee may attend and participate in an 
advisory capacity at any of the board meetings.  The term of 
each member of the board is two years or until the appointment 
and qualification of a successor.  The board selects a 
chairperson and secretary from its membership who serve terms of 
one year. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactively to May 21, 1985. 
    Sec. 5.  [CORRECTION.] Subdivision 1.  [INCORRECT NUMBER IN 
LEGAL DESCRIPTION.] Laws 1985, chapter 225, section 1, 
subdivision 2, is amended to read: 
    Subd. 2.  [LAND DESCRIPTION.] The commissioner of natural 
resources shall offer an easement in the land described in this 
subdivision to Olmsted county. 
    (a) A parcel of land in the northwest quarter of section 5, 
township 106 north, range 13 west, Olmsted county Minnesota, 
described as follows:  
    Beginning at the northwest corner of the northwest quarter; 
thence north 88 degrees 46 minutes 17 seconds east (for the 
purpose of this description the north line of the northwest 
quarter is assumed to be north 88 degrees 46 minutes 17 seconds 
east) along the north line of the northwest quarter for a 
distance of 1313.61 feet; thence south 01 degrees 13 minutes 43 
seconds east for a distance of 100.00 feet; thence south 87 
degrees 06 minutes 46 seconds west for a distance of 941.55 
feet; thence south 86 degrees 31 minutes 53 seconds west for a 
distance of 233.94 feet; thence south 52 degrees 23 minutes 06 
seconds west for a distance of 117.75 feet; thence south 00 
degrees 06 minutes 36 seconds west for a distance of 304.96 
feet; thence south 01 degrees 51 minutes 26 seconds east for a 
distance of 180.21 feet; thence south 01 degrees 11 minutes 25 
seconds east for a distance of 1870.77 feet more or less to the 
south line of the northwest quarter; thence westerly along the 
south line of said quarter to the southwest corner of the 
northwest quarter for a distance of 46.00 feet; thence north 01 
degrees 02 minutes 19 seconds west along the west line of the 
northwest quarter for a distance of 2561.96 feet to the 
northwest corner of the northwest quarter and the point of 
beginning. 
    (b) A parcel of land consisting of the west 46 feet of the 
southwest quarter of section 5 lying north of the north 
right-of-way line of trunk highway No. 14.  The parcel is 
subject to all existing roadway easements. 
    (c) A parcel of land in the northeast quarter in section 6, 
township 106 north, range 13 west, Olmsted county Minnesota, 
described as follows:  
    Beginning at the northeast corner of the northeast quarter 
of section 6; thence south 89 degrees 34 minutes 27 seconds west 
(for the purposes of this description the north line of the 
northeast quarter is assumed to be south 89 degrees 34 minutes 
27 seconds west) along the north line of said quarter a distance 
of 910.58 feet; thence south 00 degrees 07 minutes 33 seconds 
east for a distance of 86.23 feet; thence south 85 degrees 58 
minutes 28 seconds east for a distance of 621.63 feet; thence 
south 48 degrees 17 minutes 20 seconds east for a distance of 
133.16 feet; thence south 08 degrees 23 minutes 21 seconds east 
for a distance of 251.13 feet; thence south 02 degrees 01 
minutes 48 seconds east for a distance of 200.95 220.95 feet; 
thence south 01 degrees 11 minutes 25 seconds east for a 
distance of 690.71 feet to the north line of the south 1180 feet 
of the northeast quarter; thence north 88 degrees 47 minutes 30 
seconds east for a distance of 157.13 feet to the east line of 
the northeast quarter; thence north 01 degrees 02 minutes 19 
seconds west along the east line of the northeast quarter for a 
distance of 1381.96 feet to the northeast corner of the 
northeast quarter and the point of beginning.  The parcel is 
subject to all existing roadway easements. 
    The parcels in paragraphs (a), (b), and (c) containing 14.0 
acres more or less. 
    (d) A parcel of land in the southeast quarter and the south 
one-half of the northeast quarter of section 31, township 107 
north, range 13 west, Olmsted county Minnesota, described as 
follows: 
    Beginning at the southeast corner of the southeast quarter; 
thence north 00 degrees 43 minutes 30 seconds west (for the 
purpose of this description the east line of the southeast 
quarter is assumed to be north 00 degrees 43 minutes 30 seconds 
west) along the east line of said quarter for a distance of 
848.56 feet; thence north 31 degrees 33 minutes 48 seconds west 
for a distance of 394.73 feet; thence northerly 1000.11 feet 
along a nontangential curve, concave southwesterly, a central 
angle of 07 degrees 24 minutes 14 seconds, a radius of 7739.44 
feet, and the chord of said curve bears north 18 degrees 57 
minutes 13 seconds west for a distance of 999.41 feet; thence 
north 22 degrees 39 minutes 20 seconds west for a distance of 
545.41 feet to the north line of the southeast quarter; thence 
continuing north 22 degrees 39 minutes 20 seconds west for a 
distance of 1411.85 feet to the north line of the south one-half 
of the northeast quarter; thence south 89 degrees 35 minutes 55 
seconds west along the north line of the south one-half of the 
northeast quarter for a distance of 216.10 feet; thence south 22 
degrees 39 minutes 20 seconds east for a distance of 1412.11 
feet to the north line of the southeast quarter; thence 
continuing south 22 degrees 39 minutes 20 seconds east for a 
distance of 626.99 feet; thence southerly 1349.73 feet along a 
tangential curve, concave southwesterly, a central angle of 10 
degrees 15 minutes 26 seconds, a radius of 7539.44 feet, and the 
chord of said curve bears south 17 degrees 31 minutes 37 seconds 
east for a distance of 1347.93 feet; thence south 06 degrees 05 
minutes 53 seconds east, not tangent to curve, for a distance of 
539.30 feet; thence south 39 degrees 31 minutes 07 seconds west 
for a distance of 153.23 feet; thence south 84 degrees 04 
minutes 49 seconds west for a distance of 552.74 feet; thence 
south 00 degrees 07 minutes 33 seconds east for a distance of 
63.77 feet to the south line of the southeast quarter; thence 
north 89 degrees 34 minutes 27 seconds east along the south line 
of the southeast quarter for a distance of 910.58 feet to the 
southeast corner of the southeast quarter to the point of 
beginning. 
    Less the Chicago and Northwestern Railroad right-of-way in 
the south one-half of the northeast quarter.  The parcel is 
subject to all existing roadway easements.  
    This parcel contains 22.21 acres more or less. 
    (e) A parcel of land in the southwest quarter of the 
southwest quarter of section 32, township 107 north, range 13 
west, Olmsted county Minnesota, described as follows: 
    Beginning at the southwest corner of the southwest quarter; 
thence north 00 degrees 43 minutes 30 seconds west (for the 
purpose of this description the west line of the southwest 
quarter is assumed to be north 00 degrees 43 minutes 30 seconds 
west) along the west line of said quarter quarter for a distance 
of 848.56 feet; thence southeasterly 654.77 feet along a 
nontangential curve, concave southwesterly, a central angle of 
04 degrees 46 minutes 24 seconds, a radius of 7859.44 feet, and 
the chord of said curve bears south 10 degrees 06 minutes 08 
seconds east for a distance of 654.58 feet; thence south 47 
degrees 06 minutes 34 seconds east for a distance of 127.00 
feet; thence south 86 degrees 49 minutes 24 seconds east for a 
distance of 174.20 feet; thence north 88 degrees 46 minutes 17 
seconds east for a distance of 941.35 feet to the east line of 
the southwest quarter of the southwest quarter; thence south 00 
degrees 38 minutes 36 seconds east for a distance of 100.00 feet 
along the east line of the southwest quarter of the southwest 
quarter to the southeast corner of the southwest quarter of the 
southwest quarter; thence south 88 degrees 46 minutes 17 seconds 
west along the south line of said quarter quarter for a distance 
of 1313.61 feet to the southwest corner of the southwest quarter 
of the southwest quarter and the point of beginning.  The parcel 
is subject to all existing roadway easements.  
    This parcel contains 4.27 acres more or less. 
    (f) That part of the southeast quarter and that part of the 
south one-half of the northeast quarter of section 31, lying 
south of the south right-of-way line of the Chicago and 
Northwestern railroad, township 107 north, range 13 west, 
Olmsted county Minnesota, described as follows: 
    Commencing at the southwest quarter of the southeast 
quarter; thence north 00 degrees 43 minutes 24 seconds west (for 
the purpose of this description the west line of the southeast 
quarter is assumed to be north 00 degrees 43 minutes 24 seconds 
west) along the west line of southeast quarter for a distance of 
2100.00 feet to the point of beginning; thence north 89 degrees 
16 minutes 36 seconds east for a distance of 1911.81 feet; 
thence north 22 degrees 39 minutes 20 seconds west to the north 
line of the southeast quarter for a distance of 571.30 feet; 
thence continuing north 22 degrees 39 minutes 20 seconds west to 
the south right-of-way line of said railroad for a distance of 
64.75 feet; thence south 75 degrees 01 minutes 33 seconds west 
along the south right-of-way line of said railroad for a 
distance of 239.27 feet to the north line of the southeast 
quarter; thence continuing south 75 degrees 01 minutes 33 
seconds west along the south right-of-way line of said railroad 
for a distance of 1488.13 feet to the west line of the southeast 
quarter; thence south 00 degrees 43 minutes 24 seconds east 
along the west line of the southeast quarter for a distance of 
164.79 feet to the point of beginning.  Said tract is subject to 
all existing roadway easements. 
    This parcel contains 16.11 acres more or less. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactively to May 24, 1985.  
    Sec. 6.  [CORRECTION.] Subdivision 1.  [TRANSPOSED 
NUMBERS.] Laws 1985, chapter 259, section 6, is amended to read: 
    Sec. 6.  [PAYMENT OF AMORTIZATION STATE AID.] 
    Pursuant to Laws 1980, chapter 607, article 15, section 5, 
the city of Faribault, having modified the coverage of its 
salaried firefighters and police, shall be entitled to the 
payment of the amounts of amortization state aid as provided by 
law now coded in Minnesota Statutes, section 423A.02. 
    The amounts of the amortization state-aid payments for 
years after 1984 shall be paid to the city of Faribault 
following application to the commissioner of finance pursuant to 
section 432A.02 423A.02. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following its final enactment. 
    Sec. 7.  [CORRECTION.] Subdivision 1.  [OMITTED LINE.] Laws 
1985, chapter 259, section 8, is amended to read: 
    Sec. 8.  [APPROPRIATION.] 
    There is hereby appropriated during the 1986-87 biennium, 
the amount of $11,429,317 for the purpose of funding the post 
retirement adjustments provided for in this section.  The 
appropriation shall be apportioned to the retirement funds 
paying the post retirement adjustment as follows:  
                                           FY 1986      FY 1987
public employees retirement fund         $1,849,896  $1,821,454 
public employees police and fire fund        76,338      76,551 
teachers retirement fund                  1,569,042   1,566,075 
state patrol retirement fund                 59,328      59,489 
state employees retirement fund           1,316,736   1,320,386
Minneapolis employees retirement fund       852,714     861,308
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985.  
    Sec. 8.  [CORRECTION; OMITTED AMENDMENTS.] 
    Laws 1985, chapter 248, section 85, is repealed and Laws 
1984, chapter 468, section 1, is reenacted. 
    Sec. 9.  Minnesota Statutes 1984, section 160.25, 
subdivision 3, as amended by Laws 1985, chapter 169, section 2, 
is amended to read: 
    Subd. 3.  [TUNNEL TO BE MAINTAINED BY ROAD AUTHORITY.] Any 
tunnel constructed as provided in this section under any highway 
shall be maintained by the road authority having jurisdiction 
over the highway.  A town board may charge the costs of 
maintenance of the tunnel to the users if the users and the town 
board agree on the amount to be charged.  
    Sec. 10.  Minnesota Statutes 1984, section 164.06, as 
amended by Laws 1985, chapter 169, section 5, is amended to read:
    164.06 [ESTABLISH, ALTER, OR VACATE BY RESOLUTION.] 
    A town board, when authorized by a vote of the electors at 
the annual meeting, or at a special meeting called for that 
purpose, may establish, alter, or vacate a town road by 
resolution, and may acquire the right-of-way as may be necessary 
for the road by gift, purchase or as provided in section 
164.07.  A town board may alter a town road by resolution. 
    Sec. 11.  Minnesota Statutes 1984, section 365.37, as 
amended by Laws 1985, chapter 169, section 8, is amended to read:
    365.37 [CONTRACTS; LET ON BIDS, OFFICERS NOT TO BE 
INTERESTED.] 
    Except as provided in sections 471.87 to 471.89, no 
supervisors, town clerk, or town board shall become a party to, 
or be directly or indirectly interested in, any contract made or 
payment voted by the town board and all contracts let on bid 
shall be let to the lowest responsible bidder after ten days 
public notice, posted in the three most public places in the 
town or published for two weeks in a newspaper generally 
circulated in the town, of the time and place of receiving bids. 
In cases of special emergency, a contract may be let without the 
notice being given or sealed bids solicited.  A special 
emergency, for the purposes of this section, is a situation 
where immediate action must be taken, essential to the health, 
safety, or welfare of the community.  Every contract made and 
payment voted or made contrary to the provisions of this section 
shall be void and any such officer violating the provisions of 
this section shall be guilty of a misdemeanor and, in addition 
to the provisions prescribed by law, removed from office. 
    Sec. 12.  Minnesota Statutes 1984, section 444.075, 
subdivision 1, as amended by Laws 1985, chapter 169, section 15, 
is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the term "municipality" means a home rule charter or 
statutory city, wherever located, except a city of the first 
class, or a town located in a metropolitan county as defined in 
section 473.121, subdivision 4.  The term "governing body" means 
the town board of supervisors with respect to towns. 
    Sec. 13.  Minnesota Statutes 1984, section 444.075, 
subdivision 1a, as added by Laws 1985, chapter 169, section 15, 
is amended to read: 
    Subd. 1a.  [AUTHORIZATION.] Any home rule charter city, 
except cities of the first class, or any statutory 
city municipality may build, construct, reconstruct, repair, 
enlarge, improve, or in any other manner obtain 
    (i) waterworks systems, including mains, valves, hydrants, 
service connections, wells, pumps, reservoirs, tanks, treatment 
plants, and other appurtenances of a waterworks system, 
    (ii) sewer systems, sewage treatment works, disposal 
systems, and other facilities for disposing of sewage, 
industrial waste, or other wastes, and 
    (iii) storm sewer systems, including mains, holding areas 
and ponds, and other appurtenances and related facilities for 
the collection and disposal of storm water, all hereinafter 
called facilities, and maintain and operate the facilities 
inside or outside its corporate limits, and acquire by gift, 
purchase, lease, condemnation or otherwise any and all land and 
easements required for that purpose.  The authority hereby 
granted is in addition to all other powers with reference to the 
facilities otherwise granted by the laws of this state or by the 
charter of any municipality.  The authority granted in clause 
(iii) to municipalities which have territory within a watershed 
which has adopted a watershed plan pursuant to section 473.878 
shall be exercised, with respect to facilities acquired 
following the adoption of the watershed plan, only for 
facilities which are not inconsistent with the watershed plan.  
The authority granted in clause (iii) to municipalities which 
have adopted local water management plans pursuant to section 
473.879 shall be exercised, with respect to facilities acquired 
following the adoption of a local plan, only for facilities 
which are not inconsistent with the local plan.  Counties, 
except counties in the seven county metropolitan area, shall 
have the same authority granted to municipalities by this 
subdivision except for areas of the county organized into cities 
and areas of the county incorporated within a sanitary district 
established by special act of the legislature. 
    Sec. 14.  Minnesota Statutes 1984, section 152.19, 
subdivision 5, as amended by Laws 1985, chapter 160, section 1, 
is amended to read: 
    Subd. 5.  Property shall be forfeited after a conviction 
deemed to be a felony according to the following procedure: 
    (1) A separate complaint shall be filed against the 
property describing it, charging its use in the specified 
violation, and specifying the time and place of its unlawful use.
    (2) If the person arrested is acquitted, the court shall 
dismiss the complaint against any property seized pursuant to 
the preceding subdivisions and order the property returned to 
the persons legally entitled to it. 
    (3) If after conviction the court finds that the property, 
or any part thereof, was used in any violation as specified in 
the complaint, it shall order that the property unlawfully used 
be sold, destroyed, or disposed of by the appropriate agency in 
the following manner: 
    (a) The appropriate agency and prosecuting agency that 
handled the forfeiture may retain the property for official use 
but shall not use any motor vehicle required to be registered 
pursuant to chapter 168A until title is properly transferred 
pursuant to chapter 168A;  
    (b) Sell that which is not required to be destroyed by law 
and which is not harmful to the public; 
    (c) Require the commissioner of administration to take 
custody of the property and remove it for disposition in 
accordance with law; or 
     (d) Forward it to the federal drug enforcement 
administration. 
    Any property retained pursuant to clause (3)(a) of this 
subdivision shall be used only in the performance of official 
duties of the appropriate agency, and shall not be used for any 
other purpose.  All proceeds from property retained under clause 
(3)(a) of this subdivision which is later sold shall be 
disbursed as provided in clause (4) of this subdivision.  
    (4) One-third of the proceeds from the sale of forfeited 
property, after payment of seizure, storage, forfeiture and sale 
expenses and satisfaction of valid liens against the property, 
shall be forwarded to the state drug abuse authority for 
distribution among licensed hospitals and licensed drug 
treatment facilities of this state for the care and treatment of 
patients with drug related physical and psychological disorders, 
and licensed drug analysis centers.  The remaining two-thirds of 
net proceeds shall be shared equally between the prosecuting 
agency with jurisdiction over the criminal offense or the agency 
handling the forfeiture proceeding at the request of the 
prosecuting agency, and the agency investigating the offense 
involved in the forfeiture, except that if the forfeiture 
proceeding was prosecuted by a county attorney whose position is 
not full time as provided in section 388.21, the prosecutor's 
share of net proceeds shall be forwarded to the county board. 
    Any local police relief association organized under chapter 
423, which received or was entitled to receive the proceeds of 
any sale made under this section before the enactment of Laws 
1984, chapter 625 August 1, 1984, shall continue to receive and 
retain the proceeds of these sales. 
    Sec. 15.  Minnesota Statutes 1984, section 609.531, 
subdivision 6, as amended by Laws 1985, chapter 160, section 2, 
is amended to read:  
    Subd. 6.  [FORFEITURE PROCEDURES.] Any proceeds which are 
derived from or traced to the commission of a designated 
offense, conveyance device, communications device or component, 
primary container, weapon used, or contraband property shall be 
forfeited according to the following procedure:  
    (a) a separate complaint shall be filed against the 
proceeds which are derived from or traced to the commission of a 
designated offense, conveyance device, communications device or 
component, primary container, weapon used, or contraband 
property describing it, and either specifying that it is 
contraband property, or specifying that it constitutes proceeds 
derived from or traced to the commission of a designated 
offense, or charging its use in the specified violation, and 
specifying the time and place of its unlawful use; 
    (b) if the person charged with a designated offense is not 
convicted of an offense, the court shall dismiss the complaint 
against the proceeds which are derived from or traced to the 
commission of a designated offense, conveyance device, 
communications device of or component, primary container, or 
weapon used pursuant to subdivisions 2 to 5 and order the 
property returned to the persons legally entitled to it;  
    (c) if after conviction of a felony offense the court finds 
that the proceeds derived from or traced to the commission of a 
designated offense, conveyance device, communications device or 
component, primary container or weapon was used in commission of 
a designated offense, it may order that the proceeds which are 
derived from or traced to the commission of a designated 
offense, conveyance device, communications device or component, 
primary container or weapon be sold, used, converted, or 
disposed of by the appropriate agency in the following manner:  
    (1) if the lawful ownership of the proceeds which are 
derived from or traced to the commission of a designated 
offense, conveyance device, communications device or component, 
primary container, or weapon used can be determined and it is 
found the owner was not privy to violation of a designated 
offense, the proceeds which are derived from or traced to the 
commission of a designated offense, conveyance device, 
communications device or component, primary container, or weapon 
used will be returned forthwith; or 
    (2) if the lawful ownership of the proceeds derived from or 
traced to the commission of a designated offense, conveyance 
device, communications device or component, primary container, 
or weapon used cannot be determined or if the lawful owner can 
be determined and it is found the owner was privy to violation 
of a designated offense, the appropriate agency or prosecuting 
agency handling the forfeiture may:  
    (i) retain the proceeds which are derived from or traced to 
the commission of a designated offense, conveyance device, 
communications device or component, primary container, weapon 
used, or contraband property for official use; or 
    (ii) sell the proceeds which are derived from or traced to 
the commission of a designated offense, conveyance device, 
communications device or component, primary container, or weapon 
used in accordance with law.  One-third of the proceeds from the 
sale, after payment of seizure, storage, forfeiture and sale 
expenses, and satisfaction of valid liens against the property, 
shall be forwarded to the prosecuting agency with jurisdiction 
over the criminal offense or the agency that handled the 
forfeiture proceedings at the request of the prosecuting agency 
for deposit in its operating fund, or similar fund; one-third of 
the proceeds shall be forwarded to the commissioner of public 
safety for disbursement pursuant to section 299C.065, and 
one-third of the proceeds shall be retained by the appropriate 
agency and deposited in its operating fund.  Any local police 
relief association organized under chapter 423, which received 
or was entitled to receive the proceeds of any sale made under 
this section before the enactment of Laws 1984, chapter 625 
August 1, 1984, shall continue to receive and retain the 
proceeds of these sales; 
    (3) property which has been forfeited pursuant to this 
subdivision and which consists of proceeds derived from or 
traced to the commission of a designated offense must be applied 
first, to payment of seizure, storage, forfeiture and sale 
expenses and to satisfy valid liens against the property, and 
second, to any court-ordered restitution before being disposed 
of in accordance with clause (2)(i) and (ii).  
    (d) if the property is deemed to be contraband, the 
property shall be destroyed or used by the appropriate agency 
for law enforcement purposes. 
     Sec. 16.  [CORRECTION.] Subdivision 1.  [FAILURE TO CHANGE 
TOTAL WHEN OTHER SUMS CHANGED.] Laws 1979, chapter 280, section 
2, subdivision 2, as amended by Laws 1982, chapter 617, section 
25, and Laws 1985, chapter 299, section 39, is amended to read: 
    Subd. 2.  $50,000,000 $50,500,000 or so much thereof as is 
needed, is available for expenditure at a rate not exceeding 
$12,500,000 per fiscal year for grants to political subdivisions 
for construction and reconstruction of key bridges on highways, 
streets and roads under their jurisdiction.  The grants shall 
not exceed the following aggregate amounts:  
    (1) To counties.... $11,500,000 
    (2) To home rule charter and statutory cities.... 
$1,500,000 
    (3) To towns....$21,000,000 
    Additional grants may be made in an aggregate amount not to 
exceed $16,500,000 to the political subdivisions to match 
federal-aid grants for construction and reconstruction of key 
bridges under their jurisdiction.  Appropriations made in 
subdivisions 1, 2, or 3 may also be used for the following 
purposes:  
    (1) The costs of abandoning an existing bridge that is 
deficient and is in need of replacement, but where no 
replacement will be made.  
    (2) The costs of constructing a road or street that would 
facilitate the abandonment of an existing bridge determined to 
be deficient.  The construction of the road or street must be 
judged to be more cost efficent than the reconstruction or 
replacement of the existing bridge. 
     Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactively to June 6, 1985.  
     Sec. 17.  Minnesota Statutes 1984, section 60A.11, 
subdivision 21, is amended to read: 
    Subd. 21.  [FOREIGN INVESTMENTS.] Obligations of and 
investments in foreign countries, on the following conditions:  
    (a) A company may acquire and hold any foreign investments 
which are required as a condition of doing business in the 
foreign country or necessary for the convenient accommodation of 
its foreign business.  An investment is considered necessary for 
the convenient accommodation of the insurance company's foreign 
business only if it is demonstrably and directly related in size 
and purpose to the company's foreign insurance operations; and 
    (b) A company may also invest not more than a total of two 
percent of its admitted assets in any combination of:  
    (1) the obligations of foreign governments, corporations, 
or business trusts;  
    (2) obligations of federal, provincial, or other political 
subdivisions backed by the full faith and credit of the foreign 
governmental unit;  
    (3) or in the stocks or stock equivalents or obligations of 
foreign corporations or business trusts not qualifying for 
investment under subdivision 10 12, if the obligations, stocks 
or stock equivalents are listed or regularly traded on the 
London, Paris, Zurich, or Tokyo stock exchange or any similar 
regular securities exchange not disapproved by the commissioner 
within 30 days following notice from the company of its 
intention to invest in these securities. 
     Sec. 18.  [CORRECTION.] Subdivision 1.  [SECTION DROPPED 
FROM BILL; EFFECTIVE DATE UNCHANGED.] Laws 1985, chapter 217, 
section 7, is amended to read: 
    Sec. 7.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective the day after final 
enactment.  Sections 3 and 6 are effective 30 days after final 
enactment.  Section 7 is effective August 1, 1985. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactively to May 24, 1985.  
     Sec. 19.  [CORRECTIONS.] Subdivision 1.  [AMENDMENT NOT 
DRAWN TO RECODIFIED DRAINAGE LAW.] Laws 1985, chapter 172, 
section 80, is amended by adding a subdivision to read:  
    [106A.701] Subd. 4.  [CONSTRUCTION OF ROAD INSTEAD OF BRIDGE OR 
CULVERT.] In a repair proceeding under Laws 1985, chapter 172, 
sections 80 to 89, if the drainage authority finds that 
constructing a private road is more cost-effective or practical 
than constructing a bridge or culvert, a drainage authority may 
order a private road to be constructed under Laws 1985, chapter 
102, section 1, instead of a bridge or culvert. 
    Subd. 2.  [REPEALER.] Laws 1985, chapter 102, section 2, is 
repealed. 
    Sec. 20.  [CORRECTION.] Subdivision 1.  [INCORRECT INTERNAL 
SECTION REFERENCE.] H.F. No. 3, article 11, section 23, 
subdivision 2, if enacted at the 1985 first special legislative 
session, is amended to read:  
    Subd. 2.  Section 13 22 is effective July 1, 1986.  
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985. 
    Sec. 21.  Laws 1985, chapter 172, section 74, subdivision 
4, is amended to read: 
    Subd. 4.  [PAYMENT PERIOD AND INTEREST ON DRAINAGE BONDS.] 
(a) The board shall determine, by resolution:  
    (1) the time of payment for the drainage bonds not 
exceeding 23 years from their date; 
    (2) the rates of interest for the drainage bonds, with the 
net average rate of interest over the term of the bonds not to 
exceed seven percent per year the rate established under section 
475.55; and 
    (3) whether the drainage bonds are payable annually or 
semi-annually.  
    (b) The board shall determine the years and amounts of 
principal maturities that are necessary by the anticipated 
collections of the drainage systems assessments, without regard 
to any limitations on the maturities imposed by section 475.54. 
    Sec. 22.  Laws 1985, chapter 172, section 74, subdivision 
5, is amended to read:  
    Subd. 5.  [TEMPORARY DRAINAGE BONDS MATURING IN TWO YEARS 
OR LESS.] The board may issue and sell temporary drainage bonds 
under this subdivision maturing not more than two years after 
their date of issue, instead of bonds under subdivision 4.  The 
county shall issue and sell definitive drainage bonds before the 
maturity of bonds issued under this subdivision and use the 
proceeds to pay for the temporary drainage bonds and interest to 
the extent that the temporary bonds are not paid for by 
assessments collected or other available funds.  The holders of 
temporary drainage bonds and the taxpayers of the county have 
and may enforce by mandamus or other appropriate proceedings: 
    (1) all rights respecting the levy and collection of 
assessments sufficient to pay the cost of drainage proceedings 
and construction financed by the temporary drainage bonds that 
are granted by law to holders of other drainage bonds, except 
the right to require levies to be collected before the temporary 
drainage bonds mature; and 
    (2) the right to require the offering of definitive 
drainage bonds for sale, or to require the issuance of 
definitive drainage bonds in exchange for the temporary drainage 
bonds, on a par for par basis, bearing interest at the rate of 
seven percent per year established under section 475.55 if the 
definitive drainage bonds have not been sold and delivered 
before the maturity of the temporary drainage bonds.  
    Sec. 23.  Laws 1985, chapter 172, section 74, subdivision 
7, is amended to read:  
    Subd. 7.  [SALE OF DEFINITIVE DRAINAGE BONDS.] The board 
must sell and negotiate the definitive drainage bonds for at 
least their par value.  The definitive bonds must be sold at 
public sale after advertised notice under chapter 475 in 
accordance with section 475.60. 
    Sec. 24.  [CORRECTION.] Subdivision 1.  [INCORRECT SECTION 
REFERENCE.] Laws 1985, chapter 261, section 31, is amended to 
read: 
    Sec. 31.  [REPEALER OF MOORHEAD SPECIAL LAWS.] 
    Laws 1945, chapter 277; Laws 1951, chapter 499; Laws 1955, 
chapter 75; Laws 1965, chapter 190; Laws 1967, chapter 775; Laws 
1969, chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 
563, section 8 sections 13 and 19; Laws 1979, chapter 216, 
sections 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 
41, 42, and 43; Laws 1980, chapter 600, section 16; Laws 1981, 
chapter 224, section 236; and Laws 1982, chapter 578, article 3, 
section 18, are repealed. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following final enactment of Laws 1985, chapter 261. 
    Sec. 25.  [CORRECTION.] Subdivision 1.  [INCORRECT SECTION 
REFERENCE.] Laws 1985, chapter 261, section 38, is amended to 
read:  
    Sec. 38.  [EFFECTIVE DATE.] 
    Sections 2, 4 to 10 9, 17, 21 to 23, and 32 are effective 
the day following final enactment.  Section 10 is retroactive to 
January 1, 1985.  Section 1 is effective May 31, 1985.  Sections 
3 and 24 are effective July 1, 1985.  Sections 4 and 5 are 
effective January 1, 1986.  Sections 11 to 13 are effective on 
approval by the Hennepin county board.  Section 14 is effective 
retroactive to January 1, 1985, on approval by the Thief River 
Falls city council.  Sections 15 and 16 are effective 
retroactive to January 1, 1985, on approval by the Virginia city 
council.  Section 18 is effective on approval by the Buhl city 
council.  Section 19 is effective retroactive to January 1, 
1985, on approval by the Eveleth city council.  Section 20 is 
effective on approval by the New Ulm city council.  Sections 25 
to 31 are effective on approval by the Moorhead city council.  
Sections 32 to 35 are effective on approval by the St. Louis 
Park city council.  Section 36 is effective on approval by the 
Albert Lea city council.  All local approvals must comply with 
Minnesota Statutes, section 645.021. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactively to the day following final enactment of Laws 1985, 
chapter 261. 
    Sec. 26.  Laws 1985, chapter 305, article 12, section 5, is 
amended to read:  
    Sec. 5.  [INSTRUCTIONS TO REVISOR.] 
    In the following sections of Minnesota Statutes, the 
revisor of statutes shall change the reference to chapter 340 
listed in column B which occurs in the section specified in 
column A to the new reference listed in column C. 
Column A, section   Column B, section   Column C, section
16A.26                  340.60              297C.02 to 297C.08
28.16                   340.02              340A.403
28.16                   340.11              340A.404 to
                                              340A.407 
271.01, subd. 5         chapter 340         chapter 297C
290.612                 340.01              340A.403 
290.612                 340.13              340A.404 to 
                                              340A.406 
297A.431                340.01              340A.403 
297A.431                340.13              340A.404 to 
                                              340A.406 
466.15                  340.95              340A.801 
471.981, subd. 1        340.95              340A.801 
471.981, subd. 1        340.951             340A.802 
624.731, subd. 5        340.001, subd. 2    340A.101, subd. 19
624.731, subd. 5        340.07, subd. 2     340A.101, subd. 13 
     Sec. 27.  [CORRECTION.] Subdivision 1.  [TAX CHANGE.] 
Minnesota Statutes 1984, section 290.01, subdivision 20f, is 
amended to read:  
    Subd. 20f.  [MODIFICATION FOR ACCELERATED COST RECOVERY 
SYSTEM.] A modification shall be made for the allowable 
deduction under the accelerated cost recovery system.  The 
allowable deduction for the accelerated cost recovery system as 
provided in section 168 of the Internal Revenue Code of 1954 
shall be the same amount as provided in that section for 
individuals, estates, and trusts with the following 
modifications:  
    (1) For property placed in service after December 31, 1980, 
and for taxable years beginning before January 1, 1982, 15 
percent of the allowance provided in section 168 of the Internal 
Revenue Code of 1954 shall not be allowed.  
    (2)(a) For taxable years beginning after December 31, 1981, 
and before January 1, 1983, for 15-year real property as defined 
in section 168 of the Internal Revenue Code of 1954, 40 percent 
of the allowance provided in section 168 of the Internal Revenue 
Code of 1954 shall not be allowed and for all other property, 17 
percent of the allowance shall not be allowed.  
    (b) For taxable years beginning after December 31, 1982, 
and before January 1, 1985, and with respect to property placed 
in service in taxable years beginning before January 1, 1983, 
for 15-year real property as defined in section 168 of the 
Internal Revenue Code of 1954, 40 percent of the allowance 
provided in section 168 of the Internal Revenue Code of 1954 
shall not be allowed and for all other property 20 percent of 
the allowance shall not be allowed.  
    (3) For property placed in service in taxable years 
beginning after December 31, 1982 1984, the allowable deduction 
shall be the amount provided by section 168 of the Internal 
Revenue Code of 1954.  
    (4) For property placed in service after December 31, 1980, 
for which the taxpayer elects to use the straight line method 
provided in section 168(b)(3) or a method provided in section 
168(e)(2) of the Internal Revenue Code of 1954, the 
modifications provided in clauses (1) and (2) do not apply.  
    (5) For property subject to the modifications contained in 
clause (1) or (2) above, the following modification shall be 
made after the entire amount of the allowable deduction for that 
property under the provision of section 168 of the Internal 
Revenue Code of 1954 has been obtained.  The remaining 
depreciable basis in those assets for Minnesota purposes shall 
be a depreciation allowance computed by using the straight line 
method over the following number of years:  
    (a) 3 year property - 1 year.  
    (b) 5 year property - 2 years.  
    (c) 10 year property - 5 years.  
    (d) All 15 year property - 7 years.  
    (6) The basis of property to which section 168 of the 
Internal Revenue Code of 1954 applies shall be its basis as 
provided in this chapter and including the modifications 
provided in this subdivision.  The recapture tax provisions 
provided in sections 1245 and 1250 of the Internal Revenue Code 
of 1954 shall apply but shall be calculated using the basis 
provided in the preceding sentence.  When an asset is exchanged 
for another asset including an involuntary conversion and under 
the provision of the Internal Revenue Code of 1954 gain is not 
recognized in whole or in part on the exchange of the first 
asset, the basis of the second asset shall be the same as its 
federal basis provided that the difference in basis due to 
clause (1) or (2) can be written off as provided in clause (5).  
     (7) The modifications provided in this subdivision shall 
apply before applying any limitation to farm losses contained in 
section 290.09, subdivision 29.  
     (8) 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 of 1954 has been 
obtained, or where the straight line method provided in section 
168(b)(3) is used, the last taxable year in which an amount of 
allowable depreciation for that property under section 168 is 
obtained, the remaining depreciable basis in those assets for 
Minnesota purposes that is attributable to the basis reduction 
made for federal purposes under section 48(q) of the Internal 
Revenue Code of 1954 to reflect the investment tax credit shall 
be allowed as a deduction.  No amount shall be allowed as a 
deduction under section 196 of the Internal Revenue Code of 1954.
     Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective for 
taxable years beginning after December 31, 1984.  
    Sec. 28.  [CORRECTION.] Subdivision 1.  [TAX CHANGE.] 
Minnesota Statutes 1984, section 290.091, is amended to read:  
     290.091 [MINIMUM TAX ON PREFERENCE ITEMS.] 
     In addition to all other taxes imposed by this chapter 
there is hereby imposed on individuals, estates, and trusts a 
tax which, in the case of a resident individual, shall be equal 
to 40 percent of the amount of the taxpayer's alternative 
minimum tax liability for tax preference items pursuant to the 
provisions of sections 55, 57, 58 and 443(d) of the Internal 
Revenue Code of 1954 as amended through December 31, 1983.  For 
purposes of the tax imposed by this section, the following 
modifications shall be made:  
     (1) Alternative tax itemized deductions shall include the 
amount allowable as a deduction for the taxable year under 
section 164 of the Internal Revenue Code for Minnesota income 
tax paid or accrued.  
     (2) The capital gain preference item shall be reduced where 
the gain would be modified because some or all of the assets 
have a higher basis for Minnesota purposes than for federal 
purposes.  
     (3) In the case of a nonresident individual, or an estate 
or trust, with a net operating loss that is a larger amount for 
Minnesota than for federal, the capital gain preference item 
shall be reduced to the extent it was reduced in the allowance 
of the net operating loss.  
     (4) Federal preference items from the business of mining or 
producing iron ore and other ores which are subject to the 
occupation tax and exempt from taxation under section 290.05, 
subdivision 1, shall not be a preference item for Minnesota.  
    (5) The term "regular tax" as defined in section 55(f)(2) 
of the Internal Revenue Code shall be increased by the amount of 
the credit allowable under section 38 of the Internal Revenue 
Code and it shall be computed before the limitation on tax 
provided in section 1301 of the Internal Revenue Code.  
    (6) Federal preference items which arise from a farm shall 
not be a preference item to the extent they exceed the loss 
allowed under section 290.09, subdivision 29, other than 
interest and taxes.  
    In the case of any taxpayer who is not a full year resident 
individual, or who is an estate or trust the tax shall equal 40 
percent of that federal liability, multiplied by a fraction the 
numerator of which is the amount of the taxpayer's preference 
item income allocated to this state pursuant to the provisions 
of sections 290.17 to 290.20, and the denominator of which is 
the taxpayer's total preference item income for federal purposes.
    The tax benefit rule contained in section 58(h) of the 
Internal Revenue Code is applied to the Minnesota minimum tax 
only to the extent that it determines if there is a federal 
minimum tax.  No separate tax benefit rule is allowable for the 
Minnesota minimum tax.  
    For property placed in service after December 31, 1980, and 
in a taxable year beginning before January 1, 1983, the 
preference items contained in section 57 (a)(12) of the Internal 
Revenue Code of 1954, as amended through December 31, 1983, 
shall not apply.  
     Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective for 
taxable years beginning after December 31, 1984. 
    Sec. 29.  [CORRECTION.] Subdivision 1.  [INCORRECT SECTION 
REFERENCE.] Minnesota Statutes 1984, section 121.912, if amended 
by H.F. No. 3, article 7, section 7 by the 1985 first special 
session, is amended to read:  
    Sec. 7.  Minnesota Statutes 1984, section 121.912, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIMITATIONS.] Except as provided in this 
subdivision, section 7 8 of this article, and sections 123.36, 
475.61, and 475.65, a school district may not permanently 
transfer money from (1) an operating fund to a nonoperating 
fund; (2) a nonoperating fund to another nonoperating fund; or 
(3) a nonoperating fund to an operating fund.  Permanent 
transfers may be made from any fund to any other fund to correct 
for prior fiscal years' errors discovered after the books have 
been closed for that year.  Permanent transfers may be made from 
the general fund to eliminate deficits in another fund when that 
other fund is being discontinued.  When a district discontinues 
operation of a district-owned bus fleet or a substantial portion 
of a fleet, permanent transfers may be made from the fund 
balance account entitled "pupil transportation fund appropriated 
for bus purchases" to the capital expenditure fund, with the 
approval of the commissioner.  The levy authorized pursuant to 
section 275.125, subdivision 11a, shall be reduced by an amount 
equal to the amount transferred.  Any school district may 
transfer any amount from the unappropriated fund balance account 
in its transportation fund to any other operating fund or to the 
appropriated fund balance account for bus purchases in its 
transportation fund. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following final enactment of H.F. No. 3 at the 1985 first 
special session. 
    Sec. 30.  [CORRECTION.] Subdivision 1.  [ENTITLEMENT 
FIGURES WRONG.] H.F. No. 3, article 3, section 28, subdivision 
2, if enacted by the 1985 first special session, is amended to 
read: 
    Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
aid there is appropriated:  
    $137,986,300.....1986, 
    $142,755,600.....1987.  
    The appropriation for 1986 includes $20,719,600 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $117,266,700 
for aid for fiscal year 1986 payable in fiscal year 1986. 
    The appropriation for 1987 includes $21,082,300 for aid for 
fiscal year 1986 payable in fiscal year 1987 and $121,673,300 
for aid for fiscal year 1987, payable in fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$137,960,800 $138,349,000 for fiscal year 1986 
and $143,145,000 $143,548,700 for fiscal year 1987. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985.  
    Sec. 31.  [CORRECTION.] Subdivision 1.  [INCORRECT FIGURE.] 
H.F. No. 3, article 3, section 28, subdivision 4, if enacted by 
the 1985 first special session, is amended to read: 
    Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
teacher travel for home-based services for handicapped children 
under age five and their families there is appropriated: 
    $198,600.....1987. 
    The appropriation is based on aid entitlement of 
$536,400 $233,700. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985. 
    Sec. 32.  [CORRECTION.] Subdivision 1.  [CLARIFICATION.] 
H.F. No. 3, article 5, section 1, subdivision 6, if enacted at 
the 1985 first special session, is amended to read: 
    Subd. 6.  [FINANCIAL ARRANGEMENTS.] At the end of each 
school year, the department of education shall pay the tuition 
reimbursement amount within 30 days to the post-secondary 
institutions that enroll pupils under this section.  The amount 
of tuition reimbursement shall equal the lesser of: 
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course or program charged for the 
secondary pupil enrolling in a course or program under this 
section; or 
    (2) an amount equal to the difference between the formula 
allowance plus the total tier revenue attributable to that pupil 
and an amount computed by multiplying the formula allowance plus 
the total tier revenue attributable to that pupil by a ratio.  
The ratio to be used is the total number of hours that the pupil 
is enrolled in courses in the secondary school during the 
regular school year over the total number of secondary 
instructional hours per pupil in that pupil's resident district. 
    The amount paid for each pupil shall be subtracted from the 
foundation aid paid to the pupil's resident district.  If the 
amount to be subtracted is greater than the amount of foundation 
aid due the district, the excess reduction shall be made from 
other state aids due to the district. 
     Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
August 1, 1985. 
    Sec. 33.  [CORRECTION.] Subdivision 1.  [CLARIFICATION.] 
H.F. No. 3, article 8, section 63, subdivision 3, if enacted at 
the 1985 first special session, is amended to read: 
    Subd. 3.  [EXEMPLARY TEACHER EDUCATION PROGRAMS.] For 
development of exemplary teacher education programs there is 
appropriated:  
    $150,000.....1986, 
    $150,000.....1987. 
    Up to $30,000 of this sum the total appropriation for both 
years may be used for evaluation.  The sum is available until 
June 30, 1987 Any unexpended balance remaining from the 
appropriation for fiscal year 1986 shall not cancel, and shall 
be available for fiscal year 1987. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985. 
    Sec. 34.  [CORRECTION.] Subdivision 1.  [WRONG SECTION 
REFERENCE.] H.F. No. 3, article 8, section 66, if enacted at the 
1985 first special session, is amended to read: 
    Sec. 66.  [EFFECTIVE DATES.] 
    Section 9 is effective for the 1986-1987 school year and 
thereafter.  
    Sections 10 and 14 are Section 14 is effective for the 
1987-1988 school year and thereafter. 
    Section 19 is effective for licenses issued on April 4, 
1988, and thereafter. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985. 
    Sec. 35.  [CORRECTION.] Subdivision 1.  [INCORRECT 
SUBDIVISION REFERENCE.] H.F. No. 3, article 11, section 3, 
subdivision 1, if enacted by the 1985 first special session, is 
amended to read:  
    Subdivision 1.  [CALCULATION.] For an intermediate school 
district, a joint vocational technical school district or for 
other employing units, for each fiscal year the teacher 
retirement and F.I.C.A. aid is the product of (1) the sum of (A) 
teacher retirement obligations in the base year, multiplied by 
the teacher retirement inflation factor, and (B) F.I.C.A. 
obligations in the base year, multiplied by the F.I.C.A. 
inflation factor, times (2) the ratio of the number of full-time 
equivalent teachers or employees as defined in section 1, 
subdivisions 11 and 12 and 13 in the current year, to the number 
of full-time equivalent teachers or employees in the base year. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985. 
    Sec. 36.  [CORRECTION.] Subdivision 1.  [INCORRECT SECTION 
REFERENCE.] H.F. No. 3, article 11, section 21, subdivision 3, 
if enacted by the 1985 first special session, is amended to read:
    Subd. 3.  [TO DEPARTMENT OF EDUCATION.] To the department 
of education to make the aid payments required by section 
sections 2 and 3, there is appropriated:  
 $195,462,000.....1987. 
    This appropriation is for aid for fiscal year 1987 payable 
in fiscal year 1987.  The appropriation is based on an aid 
entitlement of $229,955,300 for fiscal year 1987.  
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985. 
    Sec. 37.  [CORRECTION.] Subdivision 1.  [INCORRECT 
TERMINOLOGY.] Minnesota Statutes 1984, section 49.05, 
subdivision 6, if added by H.F. No. 8, at the 1985 first special 
session, is amended to read:  
    Subd. 6.  [RIGHT OF SUBROGATION.] When a financial 
institution has been closed, and the federal deposit insurance 
corporation has paid or made available for payment the insured 
deposit liabilities of the closed institution, the corporation, 
whether or not it has or shall thereafter become a liquidating 
agent of the closed institution is subrogated, by operation of 
law with like force and effect as if the closed institution were 
a national bank, to all rights of the owners of these deposits 
against the closed financial institution in the same manner and 
to the same extent as now or hereafter necessary to enable the 
federal deposit insurance corporation under federal law to make 
insurance payments available to depositors of closed insured 
banks; provided, that the rights of depositors and other 
creditors of the closed institution shall be determined in 
accordance with the laws of this state.  The commissioner may, 
in his or her discretion, in the event of the closing of any 
financial institution pursuant to section 49.04, subdivision 1, 
the deposits of which banking financial institution are to any 
extent insured by the corporation, tender to the corporation the 
appointment as liquidating agent of this financial institution 
and, if the corporation accepts the appointment, it shall have 
and possess all the powers and privileges provided by the laws 
of this state with respect to a special deputy examiner of the 
department of commerce in the management and liquidation of this 
institution, and be subject to all of the duties of the special 
deputy examiner; provided, that nothing contained in this 
subdivision shall be construed as a surrender of the right of 
the commissioner to liquidate financial institutions under his 
or her supervision pursuant to the statute in such case made and 
provided; and the commissioner may waive the filing of a bond by 
the corporation as the special deputy examiner. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following final enactment of H.F. No. 8 passed by the 1985 
first special session. 
    Sec. 38.  [CORRECTION.] 
    Subdivision 1.  [TAX ERROR.] Laws 1984, chapter 502, 
article 9, section 5, is amended to read:  
    There is appropriated from the general fund to the 
commissioner of revenue the amounts necessary to make certain 
refunds of property taxes to railroads for assessment years 1981 
and 1982 as a result of a change in the assessed valuation of 
railroad property.  For purposes of this section, the term 
"property taxes" includes any interest which is required to be 
paid to the railroads; and the terms "refund" and "abatement" 
include only reductions in property tax made from the original 
assessment certified by the commissioner of revenue, as the 
result of a court order. 
    The county auditor shall certify to the commissioner of 
revenue the dollar amount of the refunds paid to the railroads 
by the county and each city, town, school district, and special 
taxing district or portion therof which is located within the 
county.  The certification must be made on the forms and 
completed by the date prescribed by the commissioner.  The 
commissioner of revenue shall review the certification and make 
changes in the certification that he determines are necessary.  
The amounts of the abatements for a taxing district which is 
located in more than one county shall be aggregated.  The 
commissioner shall determine the amount to be paid to each 
county, city, town, and special taxing district which shall be 
equal to the amount of the abatement in excess of 20 cents per 
capita for each county, city, town, and special taxing 
district.  The commissioner shall determine the amount to be 
paid to each school district which shall be equal to the amount 
of the abatement in excess of one dollar per pupil unit for the 
school district.  The 20 cents per capita and the one dollar per 
pupil unit shall relate to the combined abatement amount for all 
railroads for both 1981 and 1982 for each county, city, town, 
school district, and special taxing district.  The commissioner 
shall pay each taxing district as soon as practicable after 
certification, but not before January 1, 1985. 
    This appropriation is available the day after final 
enactment until expended. 
    A county, city, town, school district, and special taxing 
district may include an additional amount in its property tax 
levy for taxes payable in 1985 equal to the difference between 
the amount of tax and interest refunded to a railroad company 
whose valuation was ordered reduced by the tax court and the 
amount reimbursed to the taxing district by the state pursuant 
to this section.  Amounts levied for this purpose shall be 
considered outside of any levy limitations applicable to the 
taxing district.  In the case of a school district, only the 
amount of abatement not reimbursed under this section may be 
considered in the computation of abatement aid under section 
124.214, subdivision 2. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day after final enactment and applies to assessment years 1981 
and 1982. 
    Sec. 39.  [CORRECTION.] Subdivision 1.  [REPEALER.] 
Minnesota Statutes 1984, section 15A.081, subdivision 7a, if 
added by H.F. No. 5, section 4, at the 1985 first special 
session, is repealed. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following final enactment of H.F. No. 5, section 4, by the 
1985 first special session. 
    Sec. 40.  [CORRECTION.] Subdivision 1.  [REPEALER AND 
REENACTMENT.] H.F. No. 5, section 13, if enacted by the 1985 
first special session, is repealed.  Minnesota Statutes 1984, 
section 15A.081, subdivision 7, as amended, is reenacted. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following its final enactment. 
    Sec. 41.  [CORRECTION.] Subdivision 1.  [COMPLEMENT STATED 
INCORRECTLY.] First Special Session H.F. No. 16, section 37, 
subdivision 1, is amended to read: 
     Subdivision 1.  Total 
Appropriation                           12,739,700   12,667,600 
    Approved Complement - 366.5 
     General - 74.8   41.1
     Special - 291.7 325.4 
              Summary by Fund 
General           $ 6,095,800  $ 5,802,900 
Special           $10,229,800  $10,324,500 
Transfers to 
  Other Direct   ($ 3,585,900)($ 3,459,800) 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective July 
1, 1985. 
    Sec. 42.  
    Subdivision 1.  [REPEALER.] Special Session H.F. No. 16, 
section 230, is repealed and, notwithstanding Minnesota 
Statutes, section 645.34, Minnesota Statutes 1984, section 
115A.904, is reenacted. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following final enactment. 
    Sec. 43.  [CORRECTION.] Subdivision 1.  [NOTICE IN WRONG 
SECTION.] Minnesota Statutes 1984, section 47.20, subdivision 
15, as amended by Laws 1985, chapter 306, section 1, is amended 
to read: 
    Subd. 15.  (a) Notwithstanding the provisions of any other 
law to the contrary, any notice of default on homestead property 
as defined in section 583.02 mailed after May 24, 1983 and prior 
to May 1, 1985, or after the effective date of this section and 
prior to May 1, 1987, shall indicate that the borrower has 60 
days from the date the notice is mailed in which to cure the 
default.  The notice shall include a statement that the borrower 
may be eligible for an extension of the time prior to 
foreclosure and execution sale under sections 583.01 to 583.12. 
    (b) The statement must be in bold type, capitalized 
letters, or other form sufficient for the reader to quickly and 
easily distinguish the statement from the rest of the notice.  
The requirements of this paragraph must be followed on notices 
mailed under this subdivision on or after August 1, 1985.  A 
violation of this paragraph is a petty misdemeanor.  
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactive to the day following final enactment of Laws 1985, 
chapter 306. 
    Sec. 44.  [CORRECTION.] Subdivision 1.  [INCORRECT TERMS.] 
Minnesota Statutes 1984, section 559.21, subdivision 6, as 
amended by Laws 1985, chapter 306, section 7, is amended to read:
    Subd. 6.  [TEMPORARY MINIMUM NOTICE.] (a) Notwithstanding 
the provisions of any other law to the contrary, no contract for 
conveyance of homestead property, as defined in section 583.02, 
shall terminate until 60 days after service of notice if the 
notice is served after May 24, 1983, and prior to May 1, 1985 or 
after the effective date of this section and prior to May 1, 
1987, or 90 days after service of notice if the contract was 
entered into after May 1, 1980 and the contract vendee has paid 
25 percent or more of the purchase price.  The notice shall 
specify this 60- or 90-day period.  The notice shall include a 
statement that the borrower purchaser may be eligible for an 
extension of the time prior to foreclosure and execution sale 
termination under sections 583.01 to 583.12.  
    (b) The notice statement must be in bold type, capitalized 
letters, or other form sufficient for the reader to quickly and 
easily distinguish the notice statement from the rest of the 
writing; notice.  The requirements of this paragraph must be 
followed on notices served under this subdivision on or after 
August 1, 1985.  A violation of this requirement paragraph is a 
petty misdemeanor. 
    (c) This section subdivision does not apply to earnest 
money contracts, purchase agreements or exercised options. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactive to the day following final enactment of Laws 1985, 
chapter 306. 
    Sec. 45.  [CORRECTION.] Subdivision 1.  [NOTICE IN WRONG 
SECTION.] Minnesota Statutes 1984, section 580.031, as amended 
by Laws 1985, chapter 306, section 15, is amended to read: 
    580.031 [MINIMUM NOTICE.] 
    (a) Notwithstanding the provisions of any other law to the 
contrary, eight weeks' published notice must be given prior to 
the foreclosure sale of a homestead, as defined in section 
583.02, if the notice is published for the first time after May 
24, 1983 and prior to May 1, 1985 or after the effective date of 
this section and prior to May 1, 1987.  The notice must contain 
the information specified in section 580.04.  
    (b) The notice must be in bold type, capitalized letters, 
or other form sufficient for the reader to quickly and easily 
distinguish the notice from the rest of the writing; violation 
of this requirement is a petty misdemeanor. 
    (c) At least eight weeks before the appointed time of sale, 
a copy of the notice must be served upon the person in 
possession of the mortgaged premises, if the premises are 
actually occupied. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
retroactive to the day following final enactment of Laws 1985, 
chapter 306. 
    Sec. 46.  [CORRECTION.] Subdivision 1.  [AVAILABILITY OF 
MONEY.] H.F. No. 10, article 9, section 77, if enacted at the 
1985 first special session, is amended by adding a subdivision 
to read: 
    Subd. 5.  Notwithstanding any other provision of this 
article, money available under this article to support the 
office of full productivity and opportunity is available to the 
full productivity and opportunity coordinator August 1, 1985. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following final enactment. 
    Approved June 28, 1985

Official Publication of the State of Minnesota
Revisor of Statutes