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Office of the Revisor of Statutes

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                         Laws of Minnesota 1985 

                         CHAPTER 10-S.F.No. 24 
           An act relating to the organization and operation of 
          state government; appropriating money for the 
          department of transportation and other agencies with 
          certain conditions; modifying agencies and 
          responsibilities; providing for regulation of certain 
          activities and practices; requiring studies, reports, 
          plans, and fiscal notes; prescribing and providing for 
          certain funds, accounts, bonding, taxes, fares, and 
          fees; amending Minnesota Statutes 1984, sections 12.14;
          14.131; 15.0591, subdivision 2; 15A.081, subdivisions 
          1 and 7; 17.717, by adding a subdivision; 17A.10, 
          subdivision 2; 17A.11, as amended; 25.39, subdivision 
          4; 40.03, subdivision 1; 43A.18, subdivision 5; 
          60A.02, subdivision 7; 60A.10; 60A.131, subdivision 1; 
          60A.17, subdivision 1a; 60A.1701, subdivisions 5 and 
          10; 60C.08, subdivision 1; 61B.05, subdivision 1; 
          62A.141; 62A.146; 62A.17, subdivision 6; 62B.05; 
          62D.19; 62E.10, subdivision 2; 62E.12; 62E.16; 65B.03; 
          65B.43, by adding a subdivision; 65B.44, subdivision 
          4; 65B.48, subdivision 3a; 65B.49, by adding a 
          subdivision; 65B.63, subdivision 1; 67A.25, 
          subdivision 1; 72A.20, by adding a subdivision; 
          79.252, subdivision 4; 79.62; 138.94; 168.012, 
          subdivision 1; 168.12, subdivisions 1 and 5; 174.32, 
          subdivisions 1, 2, 3, and by adding a subdivision; 
          240.04, subdivision 4; 240.24, as amended; 297A.25, 
          subdivision 1; 299A.01, subdivision 6; 352D.02, 
          subdivision 1; 360.018, subdivision 6; 360.024; 
          453.51; 453.54, subdivision 15; 453.58, by adding a 
          subdivision; 473.373, subdivisions 4 and 6; 473.375, 
          subdivision 4, and by adding a subdivision; 473.38, 
          subdivision 2; 473.384, subdivision 7; 473.386, 
          subdivision 2; 473.39, subdivisions 1, 2, and by 
          adding a subdivision; 473.404, subdivision 7; 473.405, 
          subdivision 12; 473.408, subdivision 4, and by adding 
          a subdivision; 473.435, subdivision 2; 473.436, 
          subdivision 6; 473.446, subdivisions 1, 1a, 2a, and 3; 
          500.24, subdivision 3; 626.861, by adding a 
          subdivision; and 626.88, subdivision 3; Laws 1985, 
          chapter 168, section 14; chapter 290, section 14; and 
          chapter 309, section 14; proposing coding for new law 
          in Minnesota Statutes, chapters 3; 17; 61A; 219; 240; 
          and 473; repealing Minnesota Statutes 1984, sections 
          17.717, subdivision 6; 60A.15, subdivision 14; 
          62A.025; 65B.49, subdivision 4, as amended; 473.373, 
          subdivisions 2 and 7; 473.408, subdivisions 3, 3a, 3b, 
          and 5; 473.436, subdivisions 1, 4, and 5; 473.438; 
          473.39, subdivision 3; 473.446, subdivision 6; and 
          Laws 1985, chapter 241, section 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [TRANSPORTATION AND OTHER AGENCIES; 
APPROPRIATIONS.] The sums shown in the columns marked 
"APPROPRIATIONS" are appropriated from the general fund, or 
another fund named, to the agencies and for the purposes 
specified in this act, to be available for the fiscal years 
indicated for each purpose.  The figures "1985", "1986", and 
"1987", where used in this act, mean that the appropriation or 
appropriations listed under them are available for the year 
ending June 30, 1985, June 30, 1986, or June 30, 1987, 
respectively.  

                            SUMMARY BY FUND 
             1985           1986         1987         TOTAL   
General   $4,000,000    $76,800,700  $76,955,700 $  157,756,400
Special                     420,000      434,700        854,700
Airports                 11,175,100   10,445,900     21,621,000
M.S.A.S.                 59,500,000   61,900,000    121,400,000
C.S.A.H.                182,500,000  189,300,000    371,800,000
Tr. Hwy.                627,240,300  625,344,700  1,252,585,000
Hwy. User                12,793,700   10,651,200     23,444,900
Transit Assistance       17,700,300   19,000,700     36,701,000
Motor Vehicle Transfer      860,300      868,800      1,729,100
TOTAL     $4,000,000   $988,990,400 $994,901,700 $1,987,892,100
                                          APPROPRIATIONS
                                       Available for the Year
                                           Ending June 30 
                                          1986         1987
    Sec. 2.  TRANSPORTATION  
    Subdivision 1.  Total 
Appropriation                         $860,084,600 $868,647,500
                            1986      1987
    Approved Complement - 4,556     4,636 
    General -                15        15 
    State Airports -         37        37 
    Trunk Highway -       4,497     4,577 
    Federal -                 7         7 
 The appropriations in this section are 
from the trunk highway fund, except 
where another fund is named. 
              Summary by Fund 
General            $ 11,291,500  $ 10,886,500 
Airports           $ 11,175,100  $ 10,445,900 
M.S.A.S.           $ 59,500,000  $ 61,900,000 
C.S.A.H.           $182,500,000  $189,300,000 
Trunk Highway      $576,957,400  $576,245,600 
Highway User Tax 
  Distribution     $    100,000 
Transit Assistance $ 17,700,300  $ 19,000,700 
Motor Vehicle 
  Transfer         $    860,300       868,800 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
    Subd. 2.  Highway Development      591,127,200  601,586,100
              Summary by Fund 
M.S.A.S.           $ 59,500,000  $ 61,900,000 
C.S.A.H.           $182,500,000  $189,300,000 
Trunk Highway      $348,266,900  $349,517,300 
Motor Vehicle 
  Transfer         $    860,300  $    868,800 
(a) Trunk Highway Development 
      1986           1987 
  $332,603,200  $334,209,100 
              Summary by Fund 
Trunk Highway      $331,742,900  $333,340,300 
Motor Vehicle 
  Transfer         $    860,300  $    868,800 
 It is estimated that the appropriation 
from the trunk highway fund will be 
funded as follows:  
Federal Highway Aid 
  $216,000,000  $216,000,000 
Highway User Taxes 
  $115,742,900  $117,340,300 
 The commissioner of transportation 
shall notify the chairman of the senate 
finance committee and chairman of the 
house appropriations committee promptly 
of any events that should cause these 
estimates to change. 
 This appropriation is for the actual 
construction, reconstruction, and 
improvement of trunk highways.  This 
includes the cost of actual payment to 
land owners for lands acquired for 
highway right of way, payment to 
lessees, interest subsidies, and 
relocation expenses.  
 The commissioner of transportation 
shall complete the lime sludge 
recycling and site restoration project 
on I-94 in North Minneapolis with state 
money appropriated from the trunk 
highway fund in this act, to the extent 
that the cost of the project is not 
fully funded by the federal highway 
administration.  The amount expended 
from all funds must not exceed 
$2,300,000.  The commissioner of 
transportation is advised to make the 
lime sludge available for improving the 
condition of the soil for agricultural 
purposes, wherever practical. 
(b) County State Aids
  $182,500,000  $189,300,000 
 This appropriation is from the county 
state-aid highway fund and is available 
until spent.  
(c) Municipal State Aids
  $ 59,500,000  $ 61,900,000 
 This appropriation is from the 
municipal state-aid street fund and is 
available until spent.  
 If an appropriation for either county 
state aids or municipal state aids does 
not exhaust the balance in the fund 
from which it is made in the year for 
which it is made, the commissioner of 
finance, upon request of the 
commissioner of transportation, shall 
notify the committee on finance of the 
senate and the committee on 
appropriations of the house of 
representatives of the amount of the 
remainder and shall then add that 
amount to the appropriation.  The 
amount added is appropriated for the 
purposes of county state aids or 
municipal state aids, as appropriate.  
(d) Highway Debt Service
  $ 16,524,000  $ 16,177,000 
 For transfer to the state bond fund. 
 If this appropriation is insufficient 
to make all transfers required in the 
year for which it is made, the 
commissioner of finance shall notify 
the committee on finance of the senate 
and the committee on appropriations of 
the house of representatives of the 
amount of the deficiency and shall then 
transfer that amount under the 
statutory open appropriation.  
 Any excess appropriation shall be 
canceled to the trunk highway fund. 
    Subd. 3.  Highway Operations       160,660,600  163,165,700
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a) Maintenance
  $108,730,700  $110,103,400
 The commissioner shall seek to obtain 
one-half of the money necessary to 
operate existing and proposed travel 
information centers from local units of 
government, other state agencies, 
regional agencies, or various private 
entities as appropriate for each 
center.  The commissioner shall report 
on progress in obtaining this funding 
and staffing to the legislature on 
January 15, 1986, and January 15, 1987. 
(b) Maintenance Preservation
  $  7,382,300  $  7,283,900
(c) Construction Support
  $ 44,547,600  $ 45,778,400
    Subd. 4.  Technical Services        37,084,600   34,970,400
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a) Engineering Services 
  $ 24,604,400  $ 22,380,500 
(b) Engineering Development 
  $  8,092,100  $  8,134,500 
 $75,000 the first year and $75,000 the 
second year is for a transportation 
research contingent account to finance 
research projects that are reimbursable 
from the federal government or from 
other sources.  Expenditures from this 
account are subject to the approval of 
the commissioner of finance.  
Reimbursements must be deposited in the 
trunk highway fund.  If the 
appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
(c) State Aid Technical Assistance
  $    806,800  $    807,100
 The metropolitan transportation 
technical advisory committee shall 
consider projects on the Great River 
Road system as a high priority for 
available federal highway trust fund 
dollars.  The committee shall report to 
the chairs of the house appropriations 
committee and the senate finance 
committee by January 1, 1986, on the 
use of available federal aid for Great 
River Road projects authorized for 
construction during 1985 and projected 
for construction during 1986.  
 The department of transportation state 
aid office shall consider projects on 
the Great River Road system as a high 
priority for available federal highway 
trust fund dollars.  The state aid 
office shall report to the chairs of 
the house appropriations committee and 
the senate finance committee by January 
1, 1986, on the use of available 
federal aid for Great River Road 
projects authorized for construction 
during 1985 and projected for 
construction during 1986.  
 Copies of these reports shall also be 
forwarded to the Mississippi River 
parkway commission. 
(d) Electronic Communications
  $  2,129,800  $  2,196,100 
(e) Environmental Services 
  $  1,451,500  $  1,452,200 
    Subd. 5.  Public 
Transportation Assistance               27,851,200   28,745,500
              Summary by Fund 
General            $  9,941,400  $  9,534,500 
Transit Assistance $ 17,700,300  $ 19,000,700 
Trunk Highway      $    209,500  $    210,300 
 Any unencumbered balance remaining in 
the first year does not cancel but is 
available for the second year of the 
biennium. 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a)  Nonmetropolitan Transit Assistance 
  $  5,121,100  $  5,325,900 
              Summary by Fund 
General            $2,580,800    $2,525,200 
Transit Assistance $2,540,300    $2,800,700 
 The unobligated portion of the transit 
assistance fund made available by the 
appropriation in Laws 1984, chapter 
654, article 3, section 1, clause (i), 
for recipients outside the metropolitan 
area does not cancel on June 30, 1985, 
and is available for transit assistance 
during the period ending June 30, 1987. 
(b)  Metropolitan Transit Assistance 
  $ 22,164,600  $ 22,851,200 
              Summary by Fund 
General            $ 7,004,600   $ 6,651,200 
Transit Assistance $15,160,000   $16,200,000 
 No more than $1,750,000 may be spent by 
or under contract with the regional 
transit board on transit needs 
assessment, planning, and preliminary 
engineering for the metropolitan area.  
The needs assessment shall determine 
the size and location of transit 
markets; the mobility, income, and 
other characteristics of the transit 
users; and the cost of alternatives to 
using transit, including parking.  The 
assessment may consider any mode of 
transit or vehicle system to 
accommodate transit users.  Estimates 
of cost for the total of all modes and 
vehicle systems and alternative ways of 
financing shall be prepared as part of 
the assessment report. 
 No more than $1,080,000 the first year 
and $1,085,000 the second year may be 
used for regional transit board 
administration. 
 At least $11,000,000 must be spent for 
metro mobility service during the 
biennium ending June 30, 1987. 
 This appropriation is for payment to 
the regional transit board.  
Notwithstanding Laws 1984, chapter 654, 
article 3, sections 63, 66 to 72, 153, 
subdivision 1, and 154, the 
commissioner may use as much as may be 
needed to enter into and administer 
contracts after June 30, 1985, under 
Minnesota Statutes, sections 174.23, 
174.24, 174.265, and 174.31 for 
financial assistance during calendar 
year 1986 to providers of transit in 
the metropolitan area, until the 
regional transit board has certified 
its readiness to assume existing 
contracts of the commissioner under 
Minnesota Statutes, sections 473.384, 
473.386, and 473.388. 
 Money paid to the regional transit 
board is for expenditure by the board 
as prescribed in the schedules required 
by Minnesota Statutes, section 473.377, 
subdivision 2, clauses (e), (f), and 
(g), to be contained in the board's 
approved three-year interim transit 
service implementation and financing 
plan. 
 By October 1, 1985, the regional 
transit board shall submit to the chair 
of the house appropriations committee 
and the chair of the senate finance 
committee a detailed financial plan for 
the period ending December 31, 1987.  
The plan must meet the requirements of 
Minnesota Statutes, section 473.377, 
subdivision 3.  The plan must contain, 
specifically:  (1) proposed budgets, 
contract terms, and plans for 
expenditures for the jobseekers program 
and the program for transit dependent 
groups established by this act; (2) 
progress to date and plans for the 
development of projects under Minnesota 
Statutes, sections 473.382, 473.384, 
and 473.387; (3) a detailed schedule of 
public expenditures and recipients for 
private operator assistance, metro 
mobility, rural and urban systems, and 
the transit replacement service program 
administered under Minnesota Statutes, 
section 473.388; and (4) a schedule of 
fares planned by the board, including 
the dates of any changes and the 
revenue effects.  
 The chair of the regional transit board 
shall submit to the chairs of the house 
appropriations and local and urban 
affairs committees and the senate 
transportation and finance committees, 
for their review and comment, any 
changes in the schedules in the board's 
three-year interim transit service 
implementation and financing plan, if 
the changes alter the distribution or 
use prescribed by the schedules of the 
money paid under this section.  The 
changes must be submitted for review at 
least 30 days before adoption by the 
board.  Comments are advisory only. 
 The net amount due to the general fund 
of $3,566,300, as a result of agreement 
numbers 59677, 58917, 59676, 60771, 
58671, 60143, and 58812 between the 
metropolitan transit commission and the 
department of transportation, is 
canceled. 
(c) Transit Administration 
  $    565,500  $    568,400
              Summary by Fund 
General            $    356,000  $    358,100 
Trunk Highway      $    209,500  $    210,300 
    Subd. 6.  Program Management         6,046,300    5,970,000 
              Summary by Fund 
General            $    307,100  $    308,200 
Trunk Highway      $  5,639,200  $  5,661,800 
Highway User Tax 
  Distribution     $    100,000 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Highway Programs 
  $  1,650,100  $  1,552,900
              Summary by Fund 
General            $     75,500  $     75,800 
Trunk Highway      $  1,474,600  $  1,477,100 
Highway User Tax 
  Distribution     $    100,000 
 $100,000 the first year is for a 
highway jurisdiction study as provided 
for in this act.  
 $225,000 the first year and $225,000 
the second year is available for grants 
to regional development commissions 
outside the seven-county metropolitan 
area for transportation studies to 
identify critical concerns, problems, 
and issues. 
(b) Motor Carrier Safety and Compliance 
  $    957,200  $    962,200 
(c) Railroads and Waterways 
  $    849,000  $    852,700 
              Summary by Fund 
General            $    231,600  $    232,400 
Trunk Highway      $    617,400  $    620,300 
(d) Transportation Information 
and Support 
  $  2,590,000  $  2,602,200 
    Subd. 7.  General Support           25,300,500   22,885,600 
              Summary by Fund 
General            $     43,000  $     43,800 
Airports           $    160,900  $    121,700 
Trunk Highway      $ 25,096,600  $ 22,720,100 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a) Finance and Administration
  $  7,559,800  $  7,471,000 
(b) General Services
  $  6,120,800  $  5,707,600 
              Summary by Fund 
General            $     38,500  $     39,000 
Airports           $     60,300  $     60,900 
Trunk Highway      $  6,022,000  $  5,607,700 
 If an appropriation in this section for 
data processing development for either 
year is insufficient, the appropriation 
for the other year is available for it. 
(c) Equipment
  $ 10,656,200  $  8,718,800 
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
              Summary by Fund 
General            $      4,500  $      4,800 
Airports           $    100,600  $     60,800 
Trunk Highway      $ 10,551,100  $  8,653,200 
 The commissioner may enter into 
agreements to lease-purchase equipment 
only after presenting a report 
detailing all the equipment and the 
terms of the agreements to the chairs 
of the house appropriations committee 
and the senate finance committee.  The 
commissioner may not spend any money 
unless the chairs have made their 
recommendations.  Recommendations are 
advisory only. 
(d) Legal Services
  $    963,700  $    988,200 
 This appropriation is for the purchase 
of legal services from or through the 
attorney general.  
    Subd. 8.  Aeronautics               12,014,200   11,324,200 
              Summary by fund 
General            $  1,000,000  $  1,000,000 
Airports           $ 11,014,200  $ 10,324,200 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Aeronautics Operations
  $  2,006,900  $  1,997,300 
              Summary by fund 
General            $  1,000,000  $  1,000,000 
Airports           $  1,006,900  $    997,300 
 $1,000,000 the first year and 
$1,000,000 the second year is from the 
general fund to gather and disseminate 
weather information to both pilots and 
the general public.  This appropriation 
is available only to the extent that 
estimated receipts to the general sales 
taxes paid on the sale of aircraft for 
each year exceed the normal amount.  By 
September 30, 1985 and 1986, the 
commissioners of finance and revenue 
shall prepare revenue forecasts of 
normal aircraft sales tax collections 
based upon historical information and 
adjusted for any changes in sales tax 
rates.  By January 31, 1986 and 1987, 
the commissioner of finance shall 
determine the actual sales tax 
collected and the remaining estimated 
collections for the balance of the 
fiscal year.  The commissioner of 
finance shall allow the budgeting and 
obligation of any amounts collected and 
estimated for each year that are above 
the forecast of normal historical 
collections, up to the amount 
appropriated. 
 $65,000 the first year and $65,000 the 
second year is for the civil air 
patrol.  For the biennium ending June 
30, 1987, the aeronautics division must 
provide administrative, fiscal, and 
personnel services to the civil air 
patrol. 
 $10,000 the first year is for a grant 
to the Minnesota historical society to 
support the research and writing of a 
Minnesota aviation history book. 
(b) Aeronautics Development and Assistance
  $  9,365,600  $  9,285,600 
 $1,014,800 the first year and 
$1,021,900 the second year is for 
navigational aids.  
 $5,545,700 the first year and 
$5,568,800 the second year is for 
airport construction grants.  
 $1,617,000 the first year and 
$1,617,000 the second year is for 
airport maintenance grants.  
 If the appropriation for either year 
for navigational aids, airport 
construction grants, or airport 
maintenance grants is insufficient, the 
appropriation for the other year is 
available for it.  The appropriations 
for construction grants and maintenance 
grants must be expended only for 
grant-in-aid programs for airports that 
are not state owned. 
 These appropriations must be expended 
in accordance with Minnesota Statutes, 
section 360.305, subdivision 4. 
 The commissioner of transportation may 
transfer unencumbered balances among 
the appropriations for aeronautics 
development and assistance with the 
approval of the governor after 
consultation with the legislative 
advisory commission.  
 $7,700 the first year and $8,000 the 
second year is for maintenance of the 
Pine Creek Airport.  
 $60,000 the first year is to support 
paving the apron and connecting taxiway 
at the Pine Creek Airport, to be 
available until expended. 
(c) Air Transportation Services
  $    641,700  $     41,300 
 $123,300 the first year and $124,500 
the second year is for transfer from 
the state airports fund to the air 
transportation services account for 
pilot salaries. 
 $600,000 of the unencumbered balance in 
the hangar construction revolving 
account is canceled to the state 
airports fund, to purchase an aircraft. 
The commissioner of transportation 
shall not expend money for pilot 
uniforms. 
 During the biennium ending June 30, 
1987, the commissioner of 
transportation shall continue the 
position of state air dispatcher. 
    Subd. 9.  Transfers
 The commissioner of transportation with 
the approval of the commissioner of 
finance may transfer unencumbered 
balances among the appropriations from 
the trunk highway fund and the state 
airports fund made in this section.  No 
transfer may be made from the 
appropriation for trunk highway 
development.  No transfer may be made 
from the appropriations for debt 
service to any other appropriation.  
Transfers may not be made between funds.
Transfers must be reported immediately 
to the committee on finance of the 
senate and the committee on 
appropriations of the house of 
representatives.  
    Subd. 10.  Contingent Appropriations
 (a) The commissioner of transportation, 
with the approval of the governor after 
consultation with the legislative 
advisory commission, may transfer all 
or part of the unappropriated balance 
in the state airports fund to an 
appropriation for state airports 
purposes in order to meet an emergency 
or to take advantage of an 
unanticipated receipt of income to the 
state airports fund.  The amount 
transferred is appropriated for the 
purpose of the account to which it is 
transferred. 
 (b) The commissioner of transportation, 
with the approval of the governor after 
consultation with the legislative 
advisory commission, may transfer all 
or part of the unappropriated balance 
in the trunk highway fund to an 
appropriation for trunk highway 
purposes in order to meet an emergency 
or to take advantage of an 
unanticipated receipt of income to the 
trunk highway fund.  The amount 
transferred is appropriated for the 
purpose of the account to which it is 
transferred.  
    Sec. 3.  TRANSPORTATION 
REGULATION BOARD                           465,400      470,400 
    Approved Complement - 8 
 This appropriation is from the trunk 
highway fund. 
    Sec. 4.  PUBLIC SAFETY
    Subdivision 1.  Total 
Appropriation                           78,723,900   75,672,200 
                            1986      1987 
    Approved Complement - 1,666.4   1,666.4 
    General -               354.2     354.2 
    Special -                 1.0       1.0 
    Trunk Highway -       1,059.3   1,059.3 
    Highway User -          177.6     177.6 
    Federal -                40.3      40.3 
    Internal Service -       34.0      34.0
 The above approved complement includes 
511 for state-funded, unclassified 
patrol officers and supervisors of the 
state patrol.  Nothing in this 
provision is intended to limit the 
authority of the commissioner of public 
safety to transfer personnel, with the 
approval of the commissioner of 
finance, among the various units and 
divisions within this section, provided 
that the above complement must be 
reduced accordingly. 
 No new state patrol supervisory 
positions may be established, with the 
exception of special duty assigned 
ranks for the length of assignment only.
              Summary by Fund 
General            $ 17,513,400  $ 17,693,000 
Trunk Highway      $ 48,766,800  $ 47,578,000 
Highway User       $ 12,443,700  $ 10,401,200 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
    Subd. 2.  Administration and Related 
Services
  $  2,892,400  $  2,869,500
              Summary by Fund 
General            $     65,700  $     52,500 
Trunk Highway      $  2,826,700  $  2,817,000 
 Film rental fees shall be set by rule 
at rates determined so as to collect 
$40,000 the first year and $40,000 the 
second year of the biennium.  
    Subd. 3.  Emergency Services
  $    752,800  $    745,000
 $253,300 the first year and $244,700 
the second year is for nuclear plant 
preparedness.  Any unencumbered balance 
remaining in the first year does not 
cancel but is available for the second 
year of the biennium. 
    Subd. 4.  Criminal Apprehension
  $ 10,309,900  $ 10,125,000
              Summary by Fund 
General            $  9,303,100  $  9,422,100 
Trunk Highway      $  1,006,800  $    702,900 
 $221,300 the first year and $223,300 
the second year is for use by the 
bureau of criminal apprehension for the 
purpose of investigating 
cross-jurisdictional criminal 
activity.  Any unencumbered balance 
remaining in the first year does not 
cancel but is available for the second 
year of the biennium.  
 $63,900 the first year and $64,100 the 
second year is for the bureau of 
criminal apprehension to continue to 
provide in-service training for peace 
officers on a regional basis. 
 $171,000 the first year and $171,000 
the second year is for grants to local 
officials for the cooperative 
investigation of cross-jurisdictional 
criminal activity.  Any unencumbered 
balance remaining in the first year 
does not cancel but is available for 
the second year of the biennium. 
 $38,000 the first year and $38,000 the 
second year is for reimbursing 
political subdivisions for training 
peace officers and firefighters in the 
conduct of arson investigations. 
 Any unliquidated balance of data 
processing development money remaining 
in the first year does not cancel but 
is available for the second year of the 
biennium. 
    Subd. 5.  Fire Safety
  $  1,635,800  $  1,652,100 
 $12,300 the first year and $12,400 the 
second year is for reimbursing 
political subdivisions who enter into 
agreements to perform uniform fire code 
inspections. 
    Subd. 6.  State Patrol
  $ 33,100,500  $ 32,108,800
 This appropriation is from the trunk 
highway fund. 
 $1,200,000 the first year is to 
purchase mobile repeater units for 
state patrol trooper vehicles 
throughout the state.  
 The commissioner may assign up to ll 
pilots to the air patrolling of 
highways.  
 This appropriation provides sufficient 
money to operate the mobile 
truck-weighing program on a 12-month 
basis.  
 No more than five positions in the 
state patrol support activity may be 
filled by state troopers. 
 The commissioner may not require the 
use of gasohol in the operation of 
state patrol vehicles. 
    Subd. 7.  Capitol Security
  $    349,000  $    349,400 
 This appropriation is for executive 
protection and is from the general fund.
    Subd. 8.  Driver and Vehicle Licensing
  $ 28,249,900  $ 26,328,000 
              Summary by Fund 
General            $  3,973,400  $  3,977,500 
Trunk Highway      $ 11,832,800  $ 11,949,300 
Highway User       $ 12,443,700  $ 10,401,200 
 $500,000 the first year and $500,000 
the second year is for alcohol 
assessment reimbursements to counties. 
 $4,491,400 the first year and 
$2,301,800 the second year are for the 
manufacture of six-year plates.  The 
appropriation for this activity is from 
the highway user fund.  If the 
appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
 Any unliquidated balance of data 
processing development money remaining 
in the first year does not cancel but 
is available for the second year of the 
biennium. 
    Subd. 9.  Liquor Control 
  $    644,200  $    638,500 
 During the biennium ending June 30, 
1987, the liquor control program must 
concentrate its activities along the 
border areas of Minnesota. 
    Subd. 10.  Ancillary Services
  $    789,400  $    855,900 
 $729,400 the first year and $794,800 
the second year is for the crime 
victims reparations board.  Any 
unencumbered balance remaining the 
first year does not cancel but is 
available for the second year of the 
biennium. 
 $60,000 the first year and $61,100 the 
second year is for the expenses of the 
Private Detective and Protective Agency 
Licensing Board. 
 The commissioner may enter into 
agreements to lease-purchase equipment 
only after presenting a report 
detailing all the equipment and the 
terms of the agreements to the chairs 
of the house appropriations committee 
and the senate finance committee.  The 
commissioner may not spend any money 
unless the chairs have made their 
recommendations.  Recommendations are 
advisory only. 
    Subd. 11.  Transfers 
 The commissioner of public safety with 
the approval of the commissioner of 
finance may transfer unencumbered 
balances not specified for a particular 
purpose among the above programs within 
a fund.  Transfers must be reported 
immediately to the committee on finance 
of the senate and the committee on 
appropriations of the house of 
representatives.  
    Subd. 12.  Reimbursements
 (a) $449,900 for the first year and 
$449,100 for the second year are 
appropriated from the general fund for 
transfer by the commissioner of finance 
to the trunk highway fund on January 1, 
1986 and January 1, 1987 respectively, 
in order to reimburse the trunk highway 
fund for expenses not related to the 
fund.  These represent amounts 
appropriated out of the trunk highway 
fund for general fund purposes in the 
administration and related services 
program.  
 (b) $417,700 for the first year and 
$416,000 for the second year are 
appropriated from the highway user tax 
distribution fund for transfer by the 
commissioner of finance to the trunk 
highway fund on January 1, 1986 and 
January 1, 1987 respectively, in order 
to reimburse the trunk highway fund for 
expenses not related to the fund.  
These represent amounts appropriated 
out of the trunk highway fund for 
highway user fund purposes in the 
administration and related services 
program. 
 (c) $385,200 for the first year and 
$389,100 for the second year are 
appropriated from the highway user tax 
distribution fund for transfer by the 
commissioner of finance to the general 
fund on January 1, 1986 and January 1, 
1987 respectively, in order to 
reimburse the general fund for expenses 
not related to the fund.  These 
represent amounts appropriated out of 
the general fund for operation of the 
criminal justice data network related 
to driver and motor vehicle licensing. 
    Sec. 5.  AGRICULTURE
    Subdivision 1.  Total 
Appropriation                           16,233,200   16,537,300
    Approved Complement - 487.8 
    General - 255.3 
    Special/Revolving - 216.5 
    Federal - 16 
              Summary by Fund 
General            $ 16,040,800  $ 16,338,700 
Special            $    192,400  $    198,600
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
    Subd. 2.  Agricultural Protection Service
  $  4,056,700  $  4,043,500 
 $20,000 the first year is for the 
establishment of an apiary inspection 
program to locate and eradicate 
tracheal mite infestations.  The 
commissioner is authorized to employ 
seasonal apiary inspectors for this 
purpose.  Any unencumbered balance 
remaining the first year does not 
cancel but is available for the second 
year of the biennium. 
 Subd. 3. Agricultural Promotion Service 
  $  4,234,200  $  4,507,600 
              Summary by Fund 
General            $  4,041,800  $  4,309,000 
Special            $    192,400  $    198,600 
 $192,400 the first year and $198,600 
the second year is from the commodities 
research and promotion account in the 
special revenue fund. 
 $250,000 the first year and $250,000 
the second year is for the agriculture 
development grant program to be 
expended in accordance with Minnesota 
Statutes, section 17.101.  The 
commissioner shall submit a work 
program and semiannual progress reports 
to the chairman of the senate finance 
committee and the chairman of the house 
appropriations committee. 
 $4,000,000 in fiscal year 1985 is for 
transfer to the family farm security 
account in the special revenue fund 
created by Minnesota Statutes, section 
41.61, subdivision 1, for the purpose 
of paying lenders for defaulted loans. 
 $2,891,200 the first year and 
$3,164,600 the second year is for 
family farm security interest payment 
adjustments.  If the appropriation for 
either year is insufficient, the 
appropriation for the other year is 
available for it.  Up to 20 new loans 
may be approved in fiscal year 1986.  
Up to 48 new loans may be approved in 
fiscal year 1987. 
 $70,500 the first year and $71,000 the 
second year is for the farm crisis 
assistance program.  If the 
appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
    Subd. 4.  Administration and Financial 
Aids Service  
  $  2,913,300  $  2,926,200 
 The appropriation for administration 
and financial aids service includes the 
following amounts for grants to 
agricultural societies and associations:
(a)  For aid to the northeastern 
Minnesota junior livestock show 
association 
  $      1,200  $      1,200 
(b)  For aid to Minnesota 
livestock breeders association 
  $     19,200  $     19,200 
(c)  For aid to northern sheep 
growers associations 
  $      1,000  $      1,000 
(d)  For aid to southern sheep 
growers associations 
  $        400  $        400 
(e)  For Red River valley 
livestock associations 
  $      6,000  $      6,000 
 The amount appropriated by clause (e) 
must be spent under Minnesota Statutes, 
section 38.02. 
(f)  For the Red River Valley 
Dairymen's Association, Inc., for the 
purpose of promoting better dairying 
  $      1,200  $      1,200 
 Clauses (b), (c), (d), (e), and (f) 
must be spent under Minnesota Statutes, 
section 17.07. 
(g)  Aid to county and district 
agricultural societies 
  $    257,600  $    257,600 
 Of the amount appropriated by clause 
(g), $3,800 each year is for livestock 
premiums to county fair associations 
for carrying on boys' and girls' club 
work.  The amount appropriated by 
clause (g) must be spent under 
Minnesota Statutes, section 38.02. 
 Of the amounts appropriated by clause 
(g), $900 each year is available for 
agricultural aid to the Red Lake Band 
of Chippewa Indians, to be spent as may 
be directed by the Indian council for 
the purpose of encouraging activities 
and arts that will advance the economic 
and social interest of their people and 
particularly to promote a program of 
agricultural development that will 
utilize to the greatest possible extent 
the lands and forest owned by them.  
This appropriation may be used to help 
maintain an agricultural extension 
service, to promote 4-H club work, or 
for premiums for the competitive 
display of exhibits at any fair or 
exposition that may be arranged under 
the direction of the council. 
(h)  For aid in payment of premiums 
at exhibitions of poultry for the 
poultry associations 
  $      2,800  $      2,800 
 Of the amounts appropriated by clause 
(h), $827 must be allotted each fiscal 
year to aid the Minnesota state poultry 
association in the payment of premiums 
and other necessary expenses, exclusive 
of salaries or wages of any kind, at 
its annual exhibition. 
 $75,000 the first year and $75,000 the 
second year is for a grant to the 
Northern Crops Institute. 
 $30,500 the first year and $30,900 the 
second year is for payment of claims 
relating to livestock damaged by 
endangered animal species. 
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
 The unexpended balance appropriated for 
milk for manufacturing investment 
reimbursements in Laws 1983, chapter 
232, section 3, subdivision 1, does not 
cancel and is reappropriated to the 
commissioner and added to other 
appropriations for the biennium ending 
June 30, 1987, to develop and implement 
the pilot county agricultural land 
preservation program authorized by Laws 
1984, chapter 654. 
    Subd. 5.  Soil and Water Conservation 
Board 
  $  3,461,900  $  3,483,900 
 $644,500 the first year and $664,200 
the second year is for general purpose 
grants in aid to soil and water 
conservation districts. 
 $152,300 the first year and $152,300 
the second year is for grants to 
districts for technical assistance, 
education, and demonstrations of 
conservation tillage. 
 $198,500 the first year and $198,500 
the second year is for grants to 
watershed districts and other local 
units of government in the southern 
Minnesota river basin study area 2 for 
flood plain management.  
 $1,541,400 the first year and 
$1,541,400 the second year is for 
grants to soil and water conservation 
districts for cost-sharing contracts 
for erosion control and water quality 
management.  
 The appropriations in this section for 
the southern Minnesota river basin 
study area 2 and for grants to soil and 
water districts for cost-sharing 
contracts for erosion control and water 
quality management are available until 
expended. 
 $158,700 the first year and $158,700 
the second year is for grants in aid to 
soil and water conservation districts 
and local units of government to assist 
them in solving sediment and erosion 
control problems.  Grants must not 
exceed 50 percent of total project 
costs or 50 percent of the local share 
if federal money is used.  Priority 
must be given to projects designed to 
solve lakeshore, stream bank, and 
roadside erosion and to projects 
eligible for federal matching money.  
 $12,400 the first year and $12,400 the 
second year is for grants to soil and 
water conservation districts for review 
and comment on water permits. 
 The commissioner of agriculture shall 
establish and coordinate an interim 
study group to examine the options 
available for consolidating the 
functions and responsibilities of the 
soil and water conservation board, 
water resources board, and southern 
Minnesota rivers basin council under a 
single entity.  The study group shall 
include:  representatives of the 
affected agencies; staff assigned by 
the senate agriculture and natural 
resources committee, house environment 
and natural resources committee, and 
house agriculture committee; and such 
other representatives as the 
commissioner considers necessary.  The 
commissioner shall report to the 
legislature on October 15, 1985, on the 
options examined and the recommended 
course of action.  
    Subd. 6.  Transfers 
 The commissioner of agriculture with 
the approval of the commissioner of 
finance may transfer unencumbered 
balances not specified for a particular 
purpose among the above programs. 
Transfers must be reported immediately 
to the committee on finance of the 
senate and the committee on 
appropriations of the house of 
representatives.  
    Subd. 7.  International Trade 
  $  1,567,100  $  1,576,100 
    Sec. 6.  BOARD OF ANIMAL HEALTH      1,468,100    1,471,400 
    Approved Complement - 36 
 This appropriation includes $37,800 the 
first year and $39,900 the second year 
for payment of indemnities.  If the 
appropriation for indemnities for 
either year is insufficient, the 
appropriation for the other year is 
available for it.  Indemnities of less 
than $1 must not be paid.  
    Sec. 7.  COMMERCE 
    Subdivision 1.  Total 
Appropriation                            8,311,700    8,335,900 
    Approved Complement - 225 
    General - 222 
    Special 3 
              Summary by Fund 
General            $  8,084,100   $  8,099,800 
Special            $    227,600   $    236,100 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
    Subd. 2.  Financial Examinations 
  $  2,730,000  $  2,733,000 
    Subd. 3.  Registration and Licensing 
  $  1,417,600  $  1,429,100 
              Summary by Fund 
General            $  1,190,000   $ 1,193,000 
Special            $    227,600   $   236,100 
 $227,600 the first year and $236,100 
the second year is from the real estate 
education, research and recovery 
account in the special revenue fund for 
the purpose of Minnesota Statutes, 
section 82.34, subdivision 6.  If the 
appropriation from the special revenue 
fund for either year is insufficient, 
the appropriation for the other year is 
available for it. 
    Subd. 4.  Policy Analysis and Insurance 
  $  1,666,500  $  1,668,000 
 This appropriation includes $31,200 the 
first year and $32,800 the second year 
for costs associated with the assigned 
risk plan review board. 
    Subd. 5.  Administrative Services 
  $  1,433,600  $  1,440,700 
    Subd. 6.  Enforcement 
  $  1,064,000  $  1,065,100 
    Subd. 7.  Transfers 
 The commissioner with the approval of 
the commissioner of finance may 
transfer unencumbered balances not 
specified for a particular purpose 
among the above programs.  Transfers 
must be reported immediately to the 
committee on finance of the senate and 
the committee on appropriations of the 
house of representatives.  
    Sec. 8.  NON-HEALTH-RELATED BOARDS 
    Subdivision 1.  Total for this 
section                                  2,860,900    2,911,900 
    Subd. 2.  Board of Abstractors           3,800        3,900 
    Subd. 3.  Board of Accountancy         250,300      248,800 
    Approved Complement - 4 
    Subd. 4.  Board of Architecture, 
Engineering and Land Surveying             274,100      279,400 
    Approved Complement - 5 
    Subd. 5.  Board of Barber
Examiners                                  119,100      120,300 
    Approved Complement - 3 
    Subd. 6.  Board of Boxing               48,800       49,200 
    Approved Complement - 1.5 
    Subd. 7.  Board of Electricity         734,200      734,000 
    Approved Complement - 18 
    Subd. 8.  Board of Peace Officer
Standards and Training
General Operations and Management        1,430,600    1,476,300 
    Approved Complement - 9 
 $1,035,000 the first year and 
$1,076,400 the second year is for peace 
officers training under Minnesota 
Statutes, section 626.86. 
    Sec. 9.  PUBLIC UTILITIES 
COMMISSION                               1,321,200    1,325,200 
    Approved Complement - 29 
 The management analysis unit of the 
department of administration in 
cooperation with the public utilities 
commission shall conduct a study of the 
purposes, statutory obligations, 
procedures, and the utilization of 
staff that affect the efficiency of the 
commission's operation.  The study 
should determine the effect of 
statutory requirements, continued 
deregulation of telephone service, and 
alternative ways of organizing 
commission and staff activities 
including the roles of the chair and 
the executive director on the workload 
and efficient operation of the 
commission.  A report on these issues 
must be completed by January 1, 1986, 
and submitted to the chairs of the 
regulated industries committees, the 
agriculture, transportation, and 
semi-state division of the house 
appropriations committee, and the 
agriculture, transportation, and 
semi-states subcommittee of the senate 
finance committee. 
    Sec. 10.  PUBLIC SERVICE
    Subdivision 1.  Total 
Appropriation                             3,796,400   3,838,800 
    Approved Complement - 87 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
    Subd. 2.  Utility Regulation
  $  1,573,000  $  1,578,000
    Subd. 3.  Weights and Measures 
  $  1,709,000  $  1,744,300
    Subd. 4.  Administrative Services 
  $    514,400  $    516,500
 The director may enter into agreements 
to lease-purchase equipment only after 
presenting a report detailing all the 
equipment and the terms of the 
agreements to the chairs of the house 
appropriations committee and the senate 
finance committee.  The director may 
not spend any money unless the chairs 
have made their recommendations.  
Recommendations are advisory only. 
    Subd. 5.  Transfers 
 The department of public service, with 
the approval of the commissioner of 
finance, may transfer unencumbered 
balances not specified for a particular 
purpose among the above programs.  
Transfers must be reported immediately 
to the committee on finance of the 
senate and the committee on 
appropriations in the house of 
representatives. 
    Sec. 11.  RACING COMMISSION            874,400      780,500 
    Approved Complement - 8 
    Sec. 12.  CHARITABLE GAMBLING 
CONTROL BOARD                              500,000      500,000 
    Approved Complement - 12 
    Sec. 13.  ETHICAL PRACTICES BOARD      198,500      200,000 
    Approved Complement - 5 
    Sec. 14.  MINNESOTA MUNICIPAL 
BOARD                                      214,400      216,600 
    Approved Complement - 4 
    Sec. 15.  MINNESOTA-WISCONSIN 
BOUNDARY AREA COMMISSION                    72,900       76,800 
    Sec. 16.  UNIFORM LAWS 
COMMISSION                                  10,700       13,600 
    Sec. 17.  VOYAGEURS NATIONAL 
PARK CITIZENS COMMITTEE                     56,200       57,700 
    Sec. 18.  MINNESOTA HISTORICAL
SOCIETY 
    Subdivision 1.  Total 
Appropriation                            9,148,900    9,221,700 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
    Subd. 2.  Minnesota Historical 
Society Operations                       8,321,500    8,440,900 
 $75,000 the second year is for design 
and construction of exhibits for use in 
the state history center and is 
available only upon legislative 
authorization of a state history center.
 No more than $350,000 the first year 
and $350,000 the second year may be 
paid to the department of 
administration for plant management 
services. 
 This appropriation includes money for a 
seven-day-a-week tour program in the 
capitol and historical buildings.  The 
historical building must remain open 
for public use on Saturdays.  If 
necessary, the Minnesota historical 
society may adjust the remainder of the 
weekday schedule. 
 The Minnesota historical society shall 
make available at least 20 hours a week 
of employment as a tour guide to one 
person who is blind. 
 Any unencumbered balance remaining at 
the end of the first year must be 
returned to the state treasury and 
credited to the general fund.  
 The appropriation in this subdivision 
includes no money for compensation 
increases.  The Minnesota historical 
society is eligible for a salary 
supplement in the same manner as other 
state agencies.  The commissioner of 
finance will determine the amount of 
the salary supplement based on 
available funds.  Employees of the 
Minnesota historical society will be 
paid in accordance with the appropriate 
pay plan.  
 The historical society shall report to 
the chairs of the senate finance 
committee and the house appropriations 
committee by January 1, 1986, 
concerning the number and location of 
site visits and film inspections made 
in accordance with Minnesota Statutes, 
section 15.17. 
    Subd. 3.  Repair and Betterment        324,300      324,300 
 $124,300 the first year and $124,300 
the second year is for constructing 
exhibits, audio visual materials, and 
interpretive films at historic sites 
statewide. 
 Any unencumbered balance remaining in 
the first year does not cancel but is 
available for the second year. 
    Subd. 4.  Historic Grant-In-Aid        345,400      348,400 
(a) Historic Preservation 
  $252,900      $  252,900 
 For historic site grants to encourage 
local historic preservation projects. 
 To be eligible for a grant, a county or 
local project group must provide a 50 
percent match, in accordance with the 
historical society's guidelines. 
 Any unencumbered balance remaining in 
the first year does not cancel but is 
available for the second year. 
(b) Archaeology 
  $ 26,500      $   26,500 
(c) Government Learning Center 
  $ 66,000      $   69,000 
 This appropriation is for Project 120. 
    Subd. 5.  Fiscal Agent                 157,700      108,100 
(a) Sibley House Association 
  $ 57,600      $   58,000 
 This appropriation is available for 
operation and maintenance of the Sibley 
House and related buildings on the Old 
Mendota state historic site owned by 
the Sibley House association.  
 The historical society should seek an 
agreement with the Sibley House 
association whereby the historical 
society will make payments to the 
association for this purpose and will 
provide the association with technical 
assistance in applying for federal 
grants. 
 Notwithstanding any other law, the 
Sibley House association may purchase 
fire, wind, hail, and vandalism 
insurance, and insurance coverage for 
fine art objects from this 
appropriation. 
(b)  Minnesota Humanities Commission 
  $   32,100    $   32,100 
(c)  Minnesota International Center 
  $   18,000    $   18,000 
(d)  Camp Ripley Military Museum 
  $   30,000     
(e)  Minnesota Air National Guard Museum 
  $   20,000     
(f)  Balances Forward 
 Any unencumbered balance remaining in 
this subdivision the first year does 
not cancel but is available for the 
second year of the biennium. 
    Sec. 19.  BOARD OF THE ARTS          2,747,400    2,747,400 
    Approved Complement - 13 
    General - 10 
    Federal -  3 
 The amounts that may be spent from this 
appropriation for each purpose are as 
follows: 
(a) Administrative Services 
  $    370,000  $    370,000 
(b) Subsidies and Grants 
  $  2,377,400  $  2,377,400 
 $93,800 the first year and $93,800 the 
second year is for individual artist 
grants.  The board of the arts shall 
report to the chairman of the senate 
finance committee and the chairman of 
the house appropriations committee by 
January 1, 1986, concerning its success 
at obtaining money from federal, 
private, and other sources to match 
state money appropriated for individual 
artists grants. 
 $77,400 the first year and $77,400 the 
second year is for arts in education. 
 $889,100 the first year and $889,100 
the second year is for the support of 
regional arts councils throughout the 
state. 
(c)  Balances Forward 
 Any unencumbered balance remaining in 
(a) or (b) the first year does not 
cancel but is available for the second 
year of the biennium. 
    Sec. 20.  MINNESOTA HUMANE SOCIETY      48,000 
 State money must not be spent for the 
care, feeding, housing, or disposal of 
animals.  
 Any unencumbered balance remaining in 
the first year does not cancel but is 
available for the second year of the 
biennium. 
    Sec. 21.  MINNESOTA HORTICULTURAL 
SOCIETY                                     67,900       67,900 
    Sec. 22.  MINNESOTA ACADEMY 
OF SCIENCE                                  20,500       20,600 
    Sec. 23.  SCIENCE MUSEUM 
OF MINNESOTA                               409,500      432,600 
    Sec. 24.  MINNESOTA SAFETY 
COUNCIL                                     50,700       50,700 
 This appropriation is from the trunk 
highway fund. 
    Sec. 25.  DISABLED AMERICAN 
VETERANS                                    25,000       25,000 
 For salaries, supplies, and expenses, 
to be spent as provided by Laws 1941, 
chapter 425. 
    Sec. 26.  VETERANS OF FOREIGN 
WARS                                        30,000       30,000 
For carrying out the provisions of Laws 
1945, chapter 455. 
    Sec. 27.  GENERAL CONTINGENT           650,000      650,000 
ACCOUNTS
 The appropriations in this section must 
be expended with the approval of the 
governor after consultation with the 
legislative advisory commission 
pursuant to Minnesota Statutes, section 
3.30. 
 If an appropriation in this section for 
either year is insufficient, the 
appropriation for the other year is 
available for it.  
              Summary by Fund 
Trunk Highway Fund 
  $  400,000    $  400,000 
Highway User Tax Distribution Fund 
  $  250,000    $  250,000 
    Sec. 28.  TORT CLAIMS                  600,000      600,000 
 To be spent by the commissioner of 
finance.  
 This appropriation is from the trunk 
highway fund. 
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
    Sec. 29.  [174.031] [JURISDICTION STUDIES.] 
    Subdivision 1.  [STUDIES DIRECTED.] The commissioner of 
transportation shall establish and direct a series of highway 
jurisdiction studies at the regional and multicounty level.  The 
studies must be so designed and conducted as to constitute a 
comprehensive review in each development region, as designated 
under Minnesota Statutes, section 462.385, of the existing 
ownership of all roads and proposed changes in jurisdiction of 
those roads. 
    Subd. 2.  [STUDY GUIDELINES.] (a) The commissioner shall 
establish guidelines for the studies.  The guidelines must 
require that recommended jurisdictional changes in each study be 
based on functional classification as modified by other factors, 
which must include:  level and type of commodities moved, 
service to economic centers, load-bearing capacity, service to 
state and local institutions, tourism function, constitutional 
status, and other factors the commissioner deems necessary.  The 
guidelines must provide criteria for estimating the changes in 
financial obligations that will accompany each transfer of 
mileage under the jurisdiction proposals produced by the 
studies.  The guidelines must include requirements for extensive 
consultation by the entities performing the studies with 
officials of affected counties, cities, and towns and 
requirements for public hearings on the completed jurisdiction 
proposals resulting from the studies.  The guidelines are not 
subject to the administrative procedure act and must be 
completed by July 30, 1985. 
    (b) To assist in formulating the guidelines, the 
commissioner shall appoint an advisory committee, to serve 
without compensation and to represent county, city, and town 
governments. 
    Subd. 3.  [STUDIES COMMISSIONED.] (a) On and after August 
1, 1985, the commissioner shall enter into agreements with 
regional development commissions by which the commissions will 
conduct studies of highway jurisdiction in each region.  The 
studies must include: 
    (1) the jurisdiction of each road in the region; 
    (2) criteria for changes in jurisdiction, based on the 
commissioner's guidelines; 
    (3) jurisdictional changes actually made since January 1, 
1985; 
    (4) recommended changes in jurisdiction based on the 
criteria; 
    (5) changes in financial obligations resulting from the 
recommended jurisdictional change, based on the commissioner's 
guidelines; 
    (6) estimated effects of the recommended jurisdictional 
changes on highway staffing needs of each level of government in 
the region; and 
    (7) estimated effects of the recommended jurisdictional 
changes on law enforcement on the affected roads. 
    (b) In development regions where no regional development 
commission is functioning, or where a regional development 
commission declines to enter into an agreement to perform a 
jurisdiction study, the jurisdiction study must be organized by 
a district office of the department of transportation as 
designated by the commissioner.  A district office so designated 
must act through the counties in the development region and 
through other public agencies the commissioner directs.  For 
purposes of this section the metropolitan council is a regional 
development commission. 
    (c) The agreements must provide that each entity 
undertaking a study under this subdivision must produce and 
present to the commissioner, not later than July 31, 1987, a 
jurisdiction proposal for the region.  Each jurisdiction 
proposal must identify each instance where a proposed 
jurisdictional change is based on a factor that deviates from 
the commissioner's guidelines and explain the reasons for each 
deviation. 
    (d) The commissioner shall pay not more than two-thirds of 
the cost of each study. 
    Subd. 4.  [STATE JURISDICTION PLAN.] (a) Using the 
jurisdiction proposals presented under subdivision 3, the 
commissioner shall present, not later than March 1, 1988, to the 
legislature a statewide highway jurisdiction plan.  The plan 
must include: 
    (1) a compilation of all highway jurisdictional changes 
actually made at all levels of government since January 1, 1985; 
    (2) all future jurisdictional changes recommended in the 
jurisdiction proposals and approved by the commissioner; 
    (3) recommendations for changes in the statutory trunk 
highway system needed to implement the recommended 
jurisdictional changes; 
    (4) a recommendation as to the feasibility or desirability 
of establishing a state jurisdictional transfer fund, including 
if this fund is recommended, recommendations on control over the 
fund, on amount of money made available to the fund, on highway 
costs to be included in transfer payments made from the fund, 
and on sources of revenue for the fund; and 
     (5) other statutory changes made necessary by the 
recommended jurisdictional changes. 
    The commissioner may recommend, as an alternative to the 
fund in clause (4), changes in the constitutional distribution 
of highway user tax revenues. 
    (b) No recommended jurisdictional change in the plan may 
require the upgrading of a road prior to a transfer as a 
prerequisite for the transfer unless the upgrading is agreed to 
by the affected units of government. 
    Subd. 5.  [REPORTS.] The commissioner shall report to the 
chairs of the committees on transportation of the senate and of 
the house of representatives on the progress of activities under 
this section, on or before August 1, 1985, and at least once 
every six months thereafter, until February 1, 1988. 
    Sec. 30.  [FARES; PLANS; REPORT.] 
    The regional transit board shall prepare, as part of the 
implementation plan required by section 473.377, a statement of 
the policies that will govern the imposition of user charges for 
various types of transit service and the policies that will 
govern decisions by the board to increase or change fares.  
Following review by the council under section 473.377, the board 
shall submit the plan to the 1987 session of the legislature, 
along with its three-year financial plan.  The three-year 
financial plan must contain schedules of user charges and 
changes in user charges required to implement the plan.  During 
the period beginning January 1, 1985, and ending January 1, 
1988, total revenue from fares for all regular route service 
must produce annually not less than 35 percent of total 
operating costs for that service.  During this period, whenever 
the board's current financial plan shows, for any calendar year, 
that total revenue from fares for all regular route service is 
expected to be less than 35 percent of total operating cost for 
that service, the board shall amend its fare policies to require 
a change in fares that will bring fare revenue for that year 
into conformance with this section. 
    Sec. 31.  [HORSE MEDICATION EMERGENCY RULES; EFFECTIVE 
DATE.] 
    The emergency rules proposed by the Minnesota racing 
commission pursuant to Laws 1985, chapter 211, and published in 
the State Register, volume 9, number 50, June 10, 1985, are 
effective on that date without further administrative action.  
These emergency rules expire on the date that emergency rules 
adopted by the commission under the administrative procedure act 
are effective. 
    Sec. 32.  [PROVIDING STATE-PAID INSURANCE FOR CERTAIN 
RETIRED EMPLOYEES.] 
    Subdivision 1.  Notwithstanding other provisions of law, 
employees of the livestock weighing and licensing division of 
the department of agriculture who are eligible for retirement 
under the rule of 85 and who voluntarily retire before age 65 
shall be eligible for state-paid insurance coverages to which 
they were entitled at the time of their voluntary retirement.  
To be eligible under this provision, employees who were eligible 
to retire under the rule of 85 prior to the effective date of 
this section and had not retired must exercise their option to 
retire on or before June 28, 1985.  Employees who become 
eligible between the effective date of this section and June 30, 
1986, must exercise their option to retire within 30 days of the 
date they become eligible for retirement under the rule of 85.  
State-paid insurance coverage shall cease when the employee 
reaches age 65 or becomes eligible for similar paid benefits 
under other employment.  
    Subd. 2.  This section is repealed June 30, 1986. 
    Sec. 33.  [HYDROELECTRIC PLANTS; ST. CLOUD AND HASTINGS.] 
    The cities of Hastings and St. Cloud acting through their 
governing bodies may exercise any or all of the powers granted 
in Minnesota Statutes, sections 453.51 to 453.62, with respect 
to hydroelectric generating plants within their boundaries, 
whether or not electricity generated at the plants is 
distributed locally.  The provisions of Minnesota Statutes, 
section 453.54, subdivision 20, shall not apply to the 
hydroelectric generating plants.  The hydroelectric generating 
plants may be acquired and constructed without advertising for 
bids, preparing final plans and specifications in advance of 
construction or acquisition. 
    Sec. 34.  [3.981] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] The terms used in sections 3.981 
to 3.983 and 14.131 have the meanings given them in this section.
    Subd. 2.  [COSTS MANDATED BY THE STATE.] "Costs mandated by 
the state" means increased costs that a local agency or a school 
district is required to incur as a result of:  
    (a) a law enacted after June 30, 1985, which mandates a new 
program or an increased level of service of an existing program; 
    (b) an executive order issued after June 30, 1985, which 
mandates a new program;  
    (c) an executive order issued after June 30, 1985, which 
implements or interprets a state statute and, by this 
implementation or interpretation, increases program levels above 
the levels required before July 1, 1985;  
    (d) a statute enacted after June 30, 1985, or executive 
order issued after June 30, 1985, which implements or interprets 
a federal statute or regulation and, by this implementation or 
interpretation, increases program or service levels above the 
levels required by this federal statute or regulation; 
    (e) a statute enacted after June 30, 1985, or executive 
order issued after June 30, 1985, which implements or interprets 
a statute or amendment adopted or enacted pursuant to the 
approval of a statewide ballot measure by the voters and, by 
this implementation or interpretation, increases program or 
service levels above the levels required by the ballot measure;  
    (f) a statute enacted after June 30, 1985, or executive 
order issued after June 30, 1985, which removes an option 
previously available to local agencies and thus increases 
program or service levels or prohibits a specific activity and 
so forces local agencies to use a more costly alternative to 
provide a mandated program or service;  
    (g) a statute enacted after June 30, 1985, or executive 
order issued after June 30, 1985, which requires that an 
existing program or service be provided in a shorter time period 
and thus increases the cost of the program or service;  
    (h) a statute enacted after June 30, 1985, or executive 
order issued after June 30, 1985, which adds new requirements to 
an existing optional program or service and thus increases the 
cost of the program or service as the local agencies have no 
reasonable alternatives other than to continue the optional 
program;  
    (i) a statute enacted after June 30, 1985, or executive 
order issued after June 30, 1985, which creates new revenue 
losses stemming from new property or sales and use tax 
exemptions; or 
    (j) a statute enacted after June 30, 1985, or executive 
order issued after June 30, 1985, which requires costs 
previously incurred at local option that have subsequently been 
mandated by the state.  
    Subd. 3.  [EXECUTIVE ORDER.] "Executive order" means an 
order, plan, requirement, or rule issued by the governor, an 
official serving at the pleasure of the governor, or an agency, 
department, board, or commission of state government.  
"Executive order" does not include an order, plan, requirement, 
or rule issued by a regional water quality control board.  
    Subd. 4.  [LOCAL AGENCY.] "Local agency" means a home rule 
charter or statutory city, county, town, or special district. 
    Subd. 5.  [MANDATE.] A "mandate" means a requirement which 
applies to a local agency or school district and which, if not 
complied with, results in civil liability, criminal penalty, 
substantial economic sanction such as loss of funding, or severe 
administrative sanctions such as closure or nonlicensure of a 
facility or program.  "To mandate" means to impose such a 
requirement.  
    Subd. 6.  [REQUIRING AN INCREASED LEVEL OF 
SERVICE.] "Requiring an increased level of service" includes 
requiring that an existing service be provided in a shorter time.
    Subd. 7.  [RULE.] "Rule" means a rule, order, or standard 
of general application adopted by a state agency to implement, 
interpret, or make specific the law it enforces or administers 
or to govern its procedure.  "Rule" includes an amendment to a 
rule.  "Rule" does not include rules that relate only to the 
internal management of a state agency.  
    Subd. 8.  [SAVINGS.] "Savings" includes budget reductions 
and the freeing of staff or resources to be reassigned to a 
local agency's or school district's other areas of concern.  
    Subd. 9.  [SCHOOL DISTRICT.] "School district" includes 
school districts, community college districts, and county 
superintendents of schools.  
    Sec. 35.  [3.982] [FISCAL NOTES FOR STATE-MANDATED 
ACTIONS.] 
    When the state proposes to mandate that a local agency or 
school district take an action, and when reasonable compliance 
with that action would force the local agency or school district 
to incur costs mandated by the state, a fiscal note shall be 
prepared as provided in section 3.98, subdivision 2 and shall be 
made available to the public upon request.  If the action is 
among the exceptions listed in section 3.983, a fiscal note need 
not be prepared. 
    When a bill proposing a mandate is introduced and referred 
to a standing committee, the chairman of the standing committee 
to which the bill is referred shall request the appropriate 
state agency or department to prepare a fiscal note before the 
bill is heard in the committee.  Before a proposed mandate is 
issued in an executive order, the governor or appropriate agency 
head assigned by the governor shall prepare the fiscal note and 
make it available to the public. 
    Sec. 36.  [3.983] [EXCEPTIONS TO FISCAL NOTES.] 
    Subdivision 1.  [COSTS RESULTING FROM INFLATION.] A fiscal 
note need not be prepared for increases in the cost of providing 
an existing service if the increases result directly from 
inflation.  "Resulting directly from inflation" means 
attributable to maintaining an existing level of service rather 
than increasing the level of service.  A cost-of-living increase 
in welfare benefits is an example of a cost resulting directly 
from inflation.  
    Subd. 2.  [COSTS NOT RESULT OF NEW PROGRAM OR INCREASED 
SERVICE.] A fiscal note need not be prepared for increased local 
costs that do not result from a new program or an increased 
level of service.  
    Subd. 3.  [MISCELLANEOUS EXCEPTIONS.] A fiscal note need 
not be prepared for the cost of a mandated action if the law 
containing the mandate:  
    (a) accommodates a specific local request;  
    (b) results in no new local government duties;  
    (c) leads to revenue losses from exemptions to taxes other 
than sales, use, or property taxes;  
    (d) provides only clarifying or conforming, nonsubstantive 
changes on local government;  
    (e) imposes additional net local costs which are minor 
(less than $200 for any single local government if the mandate 
does not apply statewide or less than one-tenth of a mill times 
the entire value of taxable property in the state if the mandate 
is statewide) and do not cause a financial burden on local 
government;  
    (f) is a legislative mandate or executive order enacted 
before July 1, 1985, or a regulation initially implementing 
legislation enacted before July 1, 1985;  
    (g) implements something other than a state statute or 
executive order, such as a federal, court, or voter-approved 
mandate;  
    (h) appears in rules that are permissive or discretionary 
in nature;  
    (i) defines a new crime or redefines an existing crime or 
infraction;  
    (j) provides, or falls within the purview of existing, 
revenue sources or other financing mechanisms; or 
    (k) results in savings that equal or exceed costs. 
    Sec. 37.  Minnesota Statutes 1984, section 12.14, is 
amended to read: 
    12.14 [ASSESSMENT FOR NUCLEAR SAFETY PREPAREDNESS ACT.] 
    Any person, firm, corporation or association in the 
business of owning or operating a nuclear fission electrical 
generating plant located in Minnesota, shall pay an assessment 
to cover the cost of nuclear power plant emergency response 
plans and other programs necessary to deal with incidents 
resulting from the operation of nuclear fission electrical 
generating plants.  An assessment of $100,000 $75,000 per plant 
shall be paid to the commissioner of public safety on July 1 of 
each year. 
    Sec. 38.  Minnesota Statutes 1984, section 14.131, is 
amended to read: 
    14.131 [STATEMENT OF NEED AND REASONABLENESS.] 
    Before the agency orders the publication of a rulemaking 
notice required by section 14.14, subdivision 1a, the agency 
must prepare, review, and make available for public review a 
statement of the need for and reasonableness of the rule and a 
fiscal note if required by section 3.982.  The statement of need 
and reasonableness must be prepared under rules adopted by the 
chief administrative law judge. 
    Sec. 39.  Minnesota Statutes 1984, section 15.0591, 
subdivision 2, is amended to read: 
    Subd. 2.  [BODIES AFFECTED.] A member meeting the 
qualifications in subdivision 1 shall be appointed to the 
following boards, commissions, advisory councils, task forces, 
or committees:  
    (1) advisory council on battered women;  
    (2) advisory task force on the use of state facilities;  
    (3) alcohol and other drug abuse advisory council;  
    (4) board for community colleges;  
    (5) board of examiners for nursing home administrators;  
    (6) board on aging;  
    (7) cable communications board;  
    (8) chiropractic examiners board;  
    (9) consumer advisory council on vocational rehabilitation; 
    (10) council for the handicapped;  
    (11) council on affairs of Spanish-speaking people;  
    (12) council on black Minnesotans;  
    (13) dentistry board;  
    (14) department of economic security advisory council;  
    (15) higher education coordinating board;  
    (16) housing finance agency;  
    (17) Indian advisory council on chemical dependency;  
    (18) medical examiners board;  
    (19) medical policy directional task force on mental health;
    (20) metropolitan transit commission or its successor;  
    (21) Minnesota emergency employment development task force; 
    (22) (21) Minnesota office of volunteer services advisory 
committee;  
    (23) (22) Minnesota state arts board;  
    (24) (23) mortuary sciences advisory council;  
    (25) (24) nursing board;  
    (26) (25) optometry board;  
    (27) (26) pharmacy board;  
    (28) (27) physical therapists council;  
    (29) (28) podiatry board;  
    (30) (29) psychology board;  
    (31) (30) veterans advisory committee.  
    Sec. 40.  Minnesota Statutes 1984, section 15A.081, 
subdivision 1, is amended to read: 
    15A.081 [SALARIES AND SALARY RANGES FOR CERTAIN EMPLOYEES.] 
    Subdivision 1.  The governor shall set the salary rate 
within the ranges listed below for positions specified in this 
subdivision, upon approval of the legislative commission on 
employee relations and the legislature as provided by section 
43A.18, subdivisions 2 and 5: 
                                                Salary Range 
                                                  Effective 
                                                July 1, 1983 
Commissioner of education;                   $57,500-$70,000 
Commissioner of finance; 
Commissioner of transportation; 
Commissioner of human services; 
Chancellor, community college system; 
Chancellor, state university system; 
Director, vocational technical
  education
Executive director, state board of 
  investment; 
Commissioner of administration;              $50,000-$60,000 
Commissioner of agriculture; 
Commissioner of commerce;
Commissioner of corrections;  
Commissioner of economic security;  
Commissioner of employee relations;  
Commissioner of energy and economic 
  development;  
Commissioner of health;  
Commissioner of labor and industry;  
Commissioner of natural resources;  
Commissioner of revenue;
Commissioner of public safety;  
Chairperson, waste management board 
Chief administrative law judge; office of
  administrative hearings;
Director, pollution control agency;
Director, state planning agency;
Executive director, higher education  
  coordinating board;  
Executive director, housing finance 
  agency;  
Executive director, teacher's 
  retirement association;  
Executive director, state retirement  
  system;
Chair, metropolitan council
Chair, regional transit board 
Commissioner of human rights;                $40,000-$52,500
Director, department of public service; 
Commissioner of veterans' affairs; 
Director, bureau of mediation services; 
Commissioner, public utilities commission; 
Member, transportation regulation board; 
Director, zoological gardens. 
    Sec. 41.  Minnesota Statutes 1984, section 15A.081, 
subdivision 7, is amended to read: 
    Subd. 7.  [PART-TIME METROPOLITAN OFFICERS.] The following 
salaries are provided for officers of metropolitan agencies: 
                              Effective          Effective 
                               July 1             July 1 
                                1983               1984  
Chairman, metropolitan 
  council                      $47,000            50,000 
Chairman, metropolitan 
  airports commission           14,000            16,000 
Chairman, metropolitan 
  transit commission            42,000               -0- 
Chairman, regional
  transit board                    -0-            46,000 
Chairman, metropolitan 
  waste contol 
  commission                    18,500            20,000 
    The governor shall set the salary rate within the range set 
forth below for the following part-time positions, upon approval 
of the legislative commission on employee relations and the 
legislature as provided by section 43A.18, subdivisions 2 and 5: 
                                                  Effective 
                                                July 1, 1985 
Chair, metropolitan airports 
   commission                                $15,000-$25,000 
Chair, metropolitan waste control 
   commission 
    Fringe benefits for unclassified employees of the 
metropolitan waste control commission shall not exceed those 
fringe benefits received by unclassified employees of the 
metropolitan council. 
    Sec. 42.  [17.038] [STATISTICAL SERVICES ACCOUNT.] 
    The statistical services account is established in the 
state treasury.  All payments for statistical services performed 
by the agricultural statistics division of the department of 
agriculture must be deposited in the state treasury and credited 
to the statistical services account.  The money in the account 
is appropriated to the commissioner of agriculture to administer 
the programs of the agricultural statistics division. 
    Sec. 43.  Minnesota Statutes 1984, section 17.717, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [FERTILIZER INSPECTION ACCOUNT.] A fertilizer 
inspection account is established in the state treasury.  The 
commissioner shall deposit all fees and penalties collected 
under sections 17.711 to 17.729 in the fertilizer inspection 
account.  Money in that account, including interest earned and 
any money appropriated for the purposes of sections 17.711 to 
17.729, is annually appropriated to the commissioner for the 
administration and enforcement of sections 17.711 to 17.729.  
    Sec. 44.  Minnesota Statutes 1984, section 17A.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE LIVESTOCK WEIGHMASTERS.] The commissioner 
shall appoint state employees as necessary to provide state 
weighing service at public stockyards, packing plants, 
slaughtering houses, buying stations, or livestock market 
agencies on application from the business entity requesting 
official state livestock weighing.  State livestock weighmasters 
shall weigh all livestock coming to these places for sale, keep 
a record of the weights, and furnish the interested parties a 
certificate of state weight stating the number of animals 
weighed and the weight of the animals.  The certificate is prima 
facie evidence of the facts certified.  An application for 
official state livestock weighing constitutes an agreement 
between the business entity requesting state weighing and the 
commissioner.  The agreement is for one year beginning July 1 
and ending the following June 30.  The agreement automatically 
renews each year unless the average daily number of livestock 
weighed falls below 500 head, in which case the business 
entity must give gives the commissioner a written notice of 
intent to terminate at least 90 360 days prior to July 1.  
Otherwise the commissioner shall continue to provide state 
weighing services in accordance with this chapter.  
    State weighing service that exists on January 1, 1984, may 
not be terminated except as provided in this subdivision.  
    Sec. 45.  Minnesota Statutes 1984, section 17A.11, as 
amended by Laws 1985, chapter 241, section 1, is amended to read:
    17A.11 [FEES FOR LIVESTOCK WEIGHING.] 
    The commissioner shall prescribe the fee necessary to cover 
the cost of state weighing, to be assessed and collected from 
the seller in the manner the commissioner may prescribe.  The 
fee assessed must be the same, and the manner of collection of 
the fee must be uniform at all facilities.  At any location 
where state weighing is performed in accordance with this 
chapter and the total annual fees collected are insufficient to 
pay the cost of the weighing, the annual deficit shall be 
assessed and collected in the manner the commissioner may 
prescribe.  Additional money arising from the weighing of 
animals by the commissioner, which has been collected and 
retained by any person, shall be paid on demand to the 
commissioner.  All money collected by the commissioner shall be 
deposited in the state treasury and credited to the livestock 
weighing fund, and shall be paid out only on the order of the 
commissioner and the state's warrant. 
    Sec. 46.  Minnesota Statutes 1984, section 25.39, 
subdivision 4, is amended to read: 
    Subd. 4.  [COMMERCIAL FEED INSPECTION ACCOUNT.] Fees 
collected shall be deposited in the state treasury and credited 
to the general fund.  The costs of inspections, sampling, and 
analysis shall be paid from the appropriations made to the 
department of agriculture.  A commercial feed inspection account 
is established in the state treasury.  Fees and penalties 
collected under sections 25.35 to 25.44 must be deposited in the 
state treasury and credited to the commercial feed inspection 
account.  Money in that account, including interest earned and 
money appropriated for the enforcement and administration of 
sections 25.35 to 25.44, is annually appropriated to the 
commissioner for the administration and enforcement of sections 
25.35 to 25.44. 
    Sec. 47.  Minnesota Statutes 1984, section 40.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERS.] There is hereby established, to 
serve as an agency within the department of agriculture and to 
perform the functions conferred upon it in this chapter, the 
state soil and water conservation board to be composed of 12 
members, seven of whom shall be elected supervisors and the 
following five ex-officio members:  The director of the 
agricultural extension service of the University of Minnesota; 
the dean deputy vice president of the Institute of Agriculture, 
Forestry, and Home Economics of the University of Minnesota; the 
director of the pollution control agency; the commissioner of 
agriculture; and the commissioner of natural resources.  Each 
ex-officio member may designate a person within his organization 
to act in his stead as a member of the state board, with all his 
rights and privileges.  The designation shall be filed with the 
secretary of state.  The state board shall invite the state 
conservationist of the United States soil conservation service 
to serve as an advisory member.  The state board may also invite 
a representative of the state association of soil and water 
conservation districts, the association of Minnesota counties, 
the league of Minnesota cities and any other organizations and 
appropriate agencies deemed necessary to serve as advisory 
members.  The seven members of the state board who are elected 
supervisors shall be appointed by the governor.  In making these 
appointments the governor may consider persons recommended by 
the state association of soil and water conservation district.  
One member shall be appointed from each of the state soil and 
water conservation board administrative regions. 
    Sec. 48.  Minnesota Statutes 1984, section 43A.18, 
subdivision 5, is amended to read: 
    Subd. 5.  [GOVERNOR TO RECOMMEND CERTAIN SALARIES.] The 
governor shall, on or before July 1 of each odd numbered year, 
submit to the legislative commission on employee relations 
recommendations for salaries within the salary range for the 
positions listed in section 15A.081, subdivision subdivisions 1 
and 7.  The governor may also propose additions or deletions of 
positions from those listed.  
    (a) Before submitting the recommendations, the governor 
shall consult with the commissioner of administration, the 
commissioner of finance, and the commissioner of employee 
relations concerning the recommendations.  
    (b) In making recommendations, the governor shall consider 
only those criteria established in subdivision 8 and shall not 
take into account performance of individual incumbents.  The 
governor shall establish an objective system for quantifying 
knowledge, abilities, duties, responsibilities and 
accountabilities and in determining recommendations rate each 
position by this system.  
    (c) Before the governor's recommended salaries take effect, 
the recommendations shall be reviewed and approved, rejected or 
modified by the legislative commission on employee relations and 
the legislature in the same manner as provided for the 
commissioner's plan in subdivision 2.  The governor may also at 
any time propose changes in the salary rate of any positions 
covered by this subdivision, which shall be submitted and 
approved in the same manner as provided in this subdivision.  
    (d) The initial salary of a head of an agency or a chair of 
a metropolitan board or commission hereafter established whose 
salary is not specifically prescribed by law shall be fixed by 
the governor, after consultation with the commissioner, whose 
recommendation shall be advisory only, in an amount comparable 
to the salary of an agency head or commission chair having 
similar duties and responsibilities. 
    Sec. 49.  Minnesota Statutes 1984, section 60A.02, 
subdivision 7, is amended to read: 
    Subd. 7.  [INSURANCE AGENT OR INSURANCE AGENCY.] An 
"insurance agent" or "insurance agency" is a person acting under 
express authority from, and an appointment pursuant to section 
60A.17 by, an insurer and on its behalf to solicit insurance, or 
to appoint other agents to solicit insurance, or to write and 
countersign policies of insurance, or to collect premiums 
therefor within this state, or to exercise any or all these 
powers when so authorized by the insurer.  The term "person" 
includes a natural person, a partnership, or a corporation, or 
other entity, including an insurance agency.  
    Sec. 50.  Minnesota Statutes 1984, section 60A.10, is 
amended to read: 
    60A.10 [DEPOSITS.] 
    Subdivision 1.  [DOMESTIC COMPANIES.] (1) [DEPOSIT AS 
SECURITY FOR ALL POLICYHOLDERS REQUIRED.] No company in this 
state, other than farmers' mutual, or real estate title 
insurance companies, shall do business in this state unless it 
has on deposit with the commissioner, for the protection of both 
its resident and nonresident policyholders, securities to an 
amount, the actual market value of which, exclusive of interest, 
shall never be less than $100,000 $200,000 until July 1, 1986, 
$300,000 until July 1, 1987, $400,000 until July 1, 1988, and 
$500,000 on and after July 1, 1988.  The securities shall be 
retained under the control of the commissioner as long as any 
policies of the depositing company remain in force. 
    (2) [SECURITIES DEFINED.] For the purpose of this 
subdivision, the word "securities" means bonds or other 
obligations of, or bonds or other obligations insured or 
guaranteed by, the United States, any state of the United 
States, any municipality of this state, or any agency or 
instrumentality of the foregoing. 
    (3) [PROTECTION OF DEPOSIT FROM LEVY.] No judgment creditor 
or other claimant may levy upon any securities held on deposit 
with, or for the account of, the commissioner. Upon the entry of 
an order by a court of competent jurisdiction for the 
rehabilitation, liquidation or conservation of any depositing 
company as provided in chapter 60B, that company's deposit 
together with any accrued income thereon shall be transferred to 
the commissioner as rehabilitator, liquidator, or conservator. 
    Subd. 2.  [LIKE REQUIREMENT FOR FOREIGN COMPANIES.] Any 
insurance company of any other state of the United States may 
file with the commissioner a certificate of the insurance 
commissioner of the other state that, as such officer, he holds 
in trust and on deposit for the benefit of all the policyholders 
of the company a deposit of not less than $100,000 an amount not 
less than that required by subdivision 1 in par value of such 
securities as are required or permitted to be deposited with him 
by the laws of that state, these securities to be of the 
character in which insurance companies are authorized to invest 
under the laws of his state, stating the items of the securities 
so held, and that he is satisfied that these securities are 
worth $100,000 the value so certified.  No deposit shall be 
required in this state while the deposit, so certified, remains. 
    Subd. 2a.  [SPECIAL DEPOSITS.] The commissioner may require 
a special deposit of an individual foreign insurer for the 
protection of its Minnesota policyholders or claimants.  The 
special deposit may be required, to a maximum amount of 
$500,000.  In the event of the filing of a delinquency petition 
against the insurer in Minnesota, the deposit is subject to 
chapters 60B, 60C, and 61A. 
    Subd. 3.  [DEPOSITS IN COMPLIANCE WITH OTHER LAWS OR OF 
FOREIGN COMPANIES.] The commissioner shall receive and hold in 
official trust deposits made by any domestic company in 
compliance with the laws of any other state, to enable it to do 
business in that state, and in like manner hold deposits made by 
a foreign company under any law of this state.  The company 
making the deposit shall be entitled to the income thereof and, 
from time to time, with his consent, when not inconsistent with 
the law under which it was made, may exchange, in whole or in 
part, the securities composing the deposit for other approved 
securities of equal value. Upon application by a domestic 
company, he may return the whole or any portion of the 
securities so deposited by it, if satisfied that they are 
subject to no liability.  Upon like application, he may return 
to a foreign company any deposit made by it when it appears that 
the company has ceased to do business in this state or the 
United States, and he is satisfied that it is not subject to any 
liability in this state, or upon the order of any court of 
competent jurisdiction.  A foreign company which has made a 
deposit, its trustees, receiver, resident manager, or any 
creditor or policyholder thereof, may, at any time, institute in 
the district court of Ramsey county an action against the state 
and other proper parties to enforce and terminate the trust 
created by the deposit.  The commissioner shall immediately 
notify the governor of the action, and furnish the necessary 
information to answer in behalf of the state, and shall carry 
out such order and decree as the court shall make therein. 
    Subd. 4.  [SAFEKEEPING OF SECURITIES ON DEPOSIT.] No later 
than July 1, 1975, all securities held on deposit with the 
commissioner pursuant to the laws of this state, or in 
accordance with an order of the commissioner, shall be deposited 
for the account of the commissioner in such state or national 
bank in this state as the depositing insurer may designate and 
the commissioner may approve.  Said deposits shall be made and 
maintained in accordance with a custodial agreement between the 
bank and the depositing insurer in a form approved by the 
commissioner which shall provide as a minimum that (1) the fees 
of the custodian are to be the obligation of the depositing 
insurer, and (2) there shall be no exchange, release or transfer 
of any deposited security unless the commissioner has assented 
thereto in writing.  Securities evidenced by the Federal Reserve 
book entry system may be deposited in the name of the 
commissioner of commerce for the benefit of all policyholders of 
the depositor. 
    Subd. 6.  [RULES AND REGULATIONS.] The commissioner of 
commerce shall have the power to make such rules and regulations 
as may be necessary for the execution of the functions vested in 
him by subdivisions 3 and 4 this section. 
    Sec. 51.  Minnesota Statutes 1984, section 60A.131, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every If requested by the commissioner, an 
insurance company authorized to do business in this state shall 
disclose to the commissioner any changes in the principal 
management and directors of the company from that listed on page 
one of the annual statement within ten days of such change.  
    Sec. 52.  Minnesota Statutes 1984, section 60A.17, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [LICENSE APPLICATION.] (a) [PROCEDURE.] An 
application for a license to act as an insurance agent shall be 
made to the commissioner by the person who seeks to be 
licensed.  The application for license shall be accompanied by a 
written appointment from an admitted insurer authorizing the 
applicant to act as its agent under one or both classes of 
license.  The insurer must also submit its check payable to the 
state treasurer for the amount of the appointment fee prescribed 
by section 60A.14, subdivision 1, paragraph (c), clause (9) at 
the time the agent becomes licensed.  The application and 
appointment shall be on forms prescribed by the commissioner.  
    If the applicant is a natural person, no license shall be 
issued until that natural person has become qualified.  
     If the applicant is a partnership or corporation, no 
license shall be issued until at least one natural person who is 
a partner, director, officer, stockholder, or employee shall be 
licensed as an insurance agent.  
     (b) [RESIDENT AGENT.] The commissioner shall issue a 
resident insurance agent's license to a qualified resident of 
this state as follows:  
       (1) A person may qualify as a resident of this state if 
that person resides in this state or the principal place of 
business of that person is maintained in this state.  
Application for a license claiming residency in this state for 
licensing purposes, shall constitute an election of residency in 
this state.  Any license issued upon an application claiming 
residency in this state shall be void if the licensee, while 
holding a resident license in this state, also holds, or makes 
application for, a resident license in, or thereafter claims to 
be a resident of, any other state or jurisdiction or if the 
licensee ceases to be a resident of this state; provided, 
however, if the applicant is a resident of a community or trade 
area, the border of which is contiguous with the state line of 
this state, the applicant may qualify for a resident license in 
this state and at the same time hold a resident license from the 
contiguous state;  
       (2) The commissioner shall subject each applicant who is a 
natural person to a written examination as to the applicant's 
competence to act as an insurance agent.  The examination shall 
be held at a reasonable time and place designated by the 
commissioner;  
       (3) The examination shall be approved for use by the 
commissioner and shall test the applicant's knowledge of the 
lines of insurance, policies, and transactions to be handled 
under the class of license applied for, of the duties and 
responsibilities of the licensee, and pertinent insurance laws 
of this state;  
       (4) The examination shall be given only after the applicant 
has completed a program of classroom studies in a school, which 
shall include a school conducted by an admitted insurer, a 
correspondence course given by an admitted insurer, or other 
course of study.  The course of study shall consist of the 
equivalent of 45 30 hours of classroom study for each line for 
which a license application is made.  After January 1, 
1982, devoted to the basic fundamentals of insurance for those 
seeking a Minnesota license for the first time, 15 hours devoted 
to specific life and health topics for those seeking a life and 
health license, and 15 hours devoted to specific property and 
casualty topics for those seeking a property and casualty 
license.  The program of studies or study course shall have been 
approved by the commissioner in order to qualify under this 
clause.  If the applicant has been previously licensed for the 
particular line of insurance in the state of Minnesota, the 
requirement of a program of studies or a study course shall be 
waived.  A certification of compliance by an admitted insurer 
the organization offering the course shall accompany the agent's 
applicant's license application.  This program of studies in a 
school or a study course shall not apply to farm property perils 
and farm liability applicants, or to agents writing such other 
lines of insurance as the commissioner may exempt from 
examination by order;  
    (5) The applicant must pass the examination with a grade 
determined by the commissioner to indicate satisfactory 
knowledge and understanding of the class or classes of insurance 
for which the applicant seeks qualification.  The commissioner 
shall inform the applicant as to whether or not the applicant 
has passed;  
    (6) An applicant who has failed to pass an examination may 
take subsequent examinations.  Examination fees for subsequent 
examinations shall not be waived; and 
    (7) Any applicant for a license covering the same class or 
classes of insurance for which the applicant was licensed under 
a similar license in this state, other than a temporary license, 
within the three years preceding the date of the application 
shall be exempt from the requirement of a written examination, 
unless the previous license was revoked or suspended by the 
commissioner.  
       (c) [NONRESIDENT AGENT.] The commissioner shall issue a 
nonresident insurance agent's license to a qualified person who 
is a resident of another state or country as follows:  
       (1) A person may qualify for a license under this section 
as a nonresident only if that person holds a license in another 
state, province of Canada, or other foreign country which, in 
the opinion of the commissioner, qualifies that person for the 
same activity as that for which a license is sought;  
       (2) The commissioner shall not issue a license to any 
nonresident applicant until that person files with the 
commissioner a designation of the commissioner and the 
commissioner's successors in office as the applicant's true and 
lawful attorney upon whom may be served all lawful process in 
any action, suit, or proceeding instituted by or on behalf of 
any interested person arising out of the applicant's insurance 
business in this state.  This designation shall constitute an 
agreement that this service of process is of the same legal 
force and validity as personal service of process in this state 
upon that applicant.  
       Service of process upon any licensee in any action or 
proceeding commenced in any court of competent jurisdiction of 
this state may be made by serving the commissioner with 
appropriate copies of the process along with payment of the fee 
pursuant to section 60A.14, subdivision 1, paragraph (c), clause 
(4).  The commissioner shall forward a copy of the process by 
registered or certified mail to the licensee at the last known 
address of record or principal place of business of the 
licensee; and 
      (3) A nonresident license shall terminate automatically 
when the resident license for that class of license in the 
state, province, or foreign country in which the licensee is a 
resident is terminated for any reason.  
      (d) [DENIAL.] (1) If the commissioner finds that an 
applicant for a resident or nonresident license has not fully 
met the requirements for licensing, the commissioner shall 
refuse to issue the license and shall promptly give written 
notice to both the applicant and the appointing insurer of the 
denial, stating the grounds for the denial.  All fees which 
accompanied the application and appointment shall be deemed 
earned and shall not be refundable.  
     (2) The commissioner may also deny issuance of a license 
for any cause that would subject the license of a licensee to 
suspension or revocation.  If a license is denied pursuant to 
this clause, the provisions of section 60A.17, subdivision 6c, 
paragraph (c) apply.  
     (3) The applicant may make a written demand upon the 
commissioner for a hearing within 30 days of the denial of a 
license to determine whether the reasons stated for the denial 
were lawful.  The hearing shall be held pursuant to chapter 14.  
     (e) [TERM.] All licenses issued pursuant to this section 
shall remain in force until voluntarily terminated by the 
licensee, not renewed as prescribed in section 60A.17, 
subdivision 1d, or until suspended or revoked by the 
commissioner.  A voluntary termination shall occur when the 
license is surrendered to the commissioner with the request that 
it be terminated or when the licensee dies, or when the licensee 
is dissolved or its existence is terminated.  In the case of a 
nonresident license, a voluntary termination shall also occur 
upon the happening of the event described in paragraph (c), 
clause (3).  
     Every licensed agent shall notify the commissioner within 
30 days of any change of name, address, or information contained 
in the application. 
     (f) [SUBSEQUENT APPOINTMENTS.] A person who holds a valid 
agent's license from this state may solicit applications for 
insurance on behalf of an admitted insurer with which the 
licensee does not have a valid appointment on file with the 
commissioner; provided, that the licensee has permission from 
the insurer to solicit insurance on its behalf and, provided 
further, that the insurer upon receipt of the application for 
insurance submits a written notice of appointment to the 
commissioner accompanied by its check payable to the state 
treasurer in the amount of the appointment fee prescribed by 
section 60A.14, subdivision 1, paragraph (c), clause (9).  The 
notice of appointment shall be on a form prescribed by the 
commissioner.  
    (g) [AMENDMENT OF LICENSE.] An application to the 
commissioner to amend a license to reflect a change of name, or 
to include an additional class of license, or for any other 
reason, shall be on forms provided by the commissioner and shall 
be accompanied by the applicant's surrendered license and a 
check payable to the state treasurer for the amount of fee 
specified in section 60A.14, subdivision 1, paragraph (c).  
    An applicant who surrenders an insurance license pursuant 
to this clause retains licensed status until an amended license 
is received.  
    (h) [EXCEPTIONS.] The following are exempt from the general 
licensing requirements prescribed by this section:  
    (1) Agents of township mutuals who are exempted pursuant to 
subdivision 1b;  
    (2) Fraternal beneficiary association representatives 
exempted pursuant to subdivision 1c;  
    (3) Any regular salaried officer or employee of a licensed 
insurer, without license or other qualification, may act on 
behalf of that licensed insurer in the negotiation of insurance 
for that insurer; provided that a licensed agent must 
participate in the sale of any such insurance;  
    (4) Employers and their officers or employees, and the 
trustees or employees of any trust plan, to the extent that the 
employers, officers, employees, or trustees are engaged in the 
administration or operation of any program of employee benefits 
for the employees of the employers or employees of their 
subsidiaries or affiliates involving the use of insurance issued 
by a licensed insurance company; provided, that the activities 
of the officers, employees and trustees are incidental to 
clerical or administrative duties and their compensation does 
not vary with the volume of insurance or applications therefor; 
    (5) Employees of a creditor who enroll debtors for life or 
accident and health insurance; provided the employees receive no 
commission or fee therefor; and 
    (6) Clerical or administrative employees of an insurance 
agent who take insurance applications or receive premiums in the 
office of their employer, if the activities are incidental to 
clerical or administrative duties and the employee's 
compensation does not vary with the volume of the applications 
or premiums.  
    Sec. 53.  Minnesota Statutes 1984, section 60A.1701, 
subdivision 5, is amended to read: 
    Subd. 5.  [POWERS OF THE ADVISORY TASK FORCE.] (a) 
Applications for accreditation of each course and for approval 
of individuals responsible for monitoring course offerings must 
be submitted to the commissioner on forms prescribed by the 
commissioner and must be accompanied by a fee of not more than 
$50 payable to the state of Minnesota for deposit in the general 
fund.  A fee of $50 must accompany applications for approval of 
individuals responsible for monitoring course offerings.  If the 
advisory task force is created, it shall make recommendations to 
the commissioner regarding the accreditation of courses 
sponsored by institutions, both public and private, which 
satisfy the criteria established by this section, the number of 
credit hours to be assigned to the courses, and rules which may 
be promulgated by the commissioner.  The advisory task force 
shall seek out and encourage the presentation of courses.  
    (b) If the advisory task force is created, it shall make 
recommendations and provide subsequent evaluations to the 
commissioner regarding procedures for reporting compliance with 
the minimum education requirement.  
    Sec. 54.  Minnesota Statutes 1984, section 60A.1701, 
subdivision 10, is amended to read: 
    Subd. 10.  [REPORTING.] (a) After completing the minimum 
education requirement, each person subject to this section shall 
file or cause to be filed a compliance report in accordance with 
the procedures adopted by the commissioner.  
    (b) Each compliance report must be accompanied by an annual 
continuing education fee of $5 payable to the state of Minnesota 
for deposit in the general fund.  
    (c) An institution offering an accredited course shall 
comply with the procedure for reporting compliance adopted by 
the commissioner.  
    (d) (c) If a person subject to this section completes a 
nonaccredited course, he may submit a written report to the 
advisory committee accompanied by a fee of not more than $10 
payable to the state of Minnesota for deposit in the general 
fund.  This report must be accompanied by proof satisfactory to 
the commissioner that the person has completed the minimum 
education requirement for the annual period during which the 
nonaccredited course was completed.  Upon the recommendation of 
the advisory committee that the course satisfies the criteria 
for course accreditation, the commissioner may approve the 
nonaccredited course and shall so inform the person.  If the 
nonaccredited course is approved by the commissioner, it may be 
used to satisfy the minimum education requirement for the 
person's next annual compliance period.  
    Sec. 55.  Minnesota Statutes 1984, section 60C.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  The board of directors of the association 
shall consist of not less than five nor more than nine persons 
serving terms as established in the plan of operation.  The 
members of the board shall be selected by member 
insurers association members subject to the approval of the 
commissioner.  Vacancies on the board shall be filled for the 
remaining period of the term in the same manner as initial 
appointments.  If no members are selected within 60 days after 
July 1, 1971, the commissioner may appoint the initial members 
of the board of directors.  If vacancies are not filled within 
60 days of the end of terms, the commissioner may appoint as in 
the case of initial vacancies.  
    Sec. 56.  [61A.021] [SALE OF LIFE INSURANCE AND ANNUITY AS 
SINGLE POLICY PROHIBITED.] 
    Subdivision 1.  [SALE AS SINGLE POLICY PROHIBITED.] The 
sale of a life insurance product and an annuity as a single 
policy, whether in the form of a life insurance policy with an 
annuity rider or otherwise, is prohibited in this state.  This 
subdivision does not prohibit the simultaneous sale of these 
products, but the sale must involve two separate and distinct 
policies. 
    Subd. 2.  [TYING PROHIBITED.] The tying of the sale of a 
life insurance product and an annuity is expressly prohibited.  
The sale of one policy cannot be conditioned upon the sale of a 
second policy.  A violation of subdivision 1 is an unfair and 
deceptive trade practice under chapter 72A. 
    Subd. 3.  [EXEMPTION.] The commissioner may exempt by order 
such a product from this section if it is in the public interest.
    Subd. 4.  [IMPLEMENTATION.] This section applies to all 
sales where applications are completed on or after the effective 
date of this section. 
    Sec. 57.  Minnesota Statutes 1984, section 61B.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COMPOSITION OF BOARD.] The board of 
directors of the association shall consist of not less than five 
nor more than nine members serving terms as established in the 
plan of operation under section 61B.08.  The members of the 
board shall be selected by member insurers the association 
members subject to the approval of the commissioner.  Vacancies 
on the board shall be filled for the remaining period of the 
term in the manner described in the plan of operation.  To 
select the initial board of directors, and initially organize 
the association, the commissioner shall give notice to all 
member insurers of the time and place of the organizational 
meeting.  At the organizational meeting, each member insurer 
shall be entitled to one vote in person or by proxy.  If the 
board of directors is not selected within 60 days after notice 
of the organizational meeting, the commissioner may appoint the 
initial members. 
    Sec. 58.  Minnesota Statutes 1984, section 62A.141, is 
amended to read: 
    62A.141 [COVERAGE FOR HANDICAPPED DEPENDENTS.] 
    No group policy or plan of health and accident insurance 
regulated under this chapter, chapter 62C, or chapter 62D, which 
provides for dependent coverage may be issued or renewed in this 
state after August 1, 1983, unless it covers the handicapped 
dependents of the insured, subscriber, or enrollee of the policy 
or plan.  If ordered by the commissioner of commerce, the 
insurer of a Minnesota-domiciled nonprofit association which is 
composed solely of agricultural members may restrict coverage 
under this section to apply only to Minnesota residents. 
    Sec. 59.  Minnesota Statutes 1984, section 62A.146, is 
amended to read: 
    62A.146 [CONTINUATION OF BENEFITS TO SURVIVORS.] 
    No policy or plan of accident and health protection issued 
by an insurer, nonprofit health service plan corporation, or 
health maintenance organization, providing coverage of hospital 
or medical expense on either an expense incurred basis or other 
than an expense incurred basis which in addition to coverage of 
the insured, subscriber, or enrollee, also provides coverage to 
his dependents, shall, except upon the written consent of the 
survivor or survivors of the deceased insured, subscriber or 
enrollee, terminate, suspend or otherwise restrict the 
participation in or the receipt of benefits otherwise payable 
under the policy or plan to the survivor or survivors until the 
earlier of the following dates:  
    (a) The date of remarriage of the surviving spouse; or 
    (b) The date coverage would have terminated under the 
policy or plan had the insured, subscriber, or enrollee lived.  
    The survivor or survivors, in order to have the coverage 
and benefits extended, may be required to pay the entire cost of 
the protection.  Failure of the survivor to make premium or fee 
payments within 30 90 days after notice of the requirement to 
pay the premiums or fees shall be a basis for the termination of 
the coverage without written consent.  In event of termination 
by reason of the survivor's failure to make required premium or 
fee contributions, written notice of cancellation must be mailed 
to the survivor's last known address at least 15 30 days before 
the cancellation.  If the coverage is provided under a group 
policy or plan, any required premium or fee contributions for 
the coverage shall be paid by the survivor to the group 
policyholder or contract holder for remittance to the insurer, 
nonprofit health service plan corporation, or health maintenance 
organization.  
    Sec. 60.  Minnesota Statutes 1984, section 62A.17, 
subdivision 6, is amended to read: 
    Subd. 6.  [CONVERSION TO INDIVIDUAL POLICY.] A group 
insurance policy that provides post termination or lay off 
coverage as required by this section shall also include a 
provision allowing a covered employee, surviving spouse, or 
dependent at the expiration of the post termination or lay off 
coverage provided by subdivision 2 to obtain from the insurer 
offering the group policy or group subscriber contract, at the 
employee's, spouse's, or dependent's option and expense, without 
further evidence of insurability and without interruption of 
coverage, an individual policy of insurance or an individual 
subscriber contract providing at least the minimum benefits of a 
qualified plan as prescribed by section 62E.06 and the option of 
a number three qualified plan, a number two qualified plan, and 
a number one qualified plan as provided by section 62E.06, 
subdivisions 1 to 3.  The required conversion contract must 
treat pregnancy the same as any other covered illness under the 
conversion contract.  A health maintenance contract issued by a 
health maintenance organization that provides post-termination 
or layoff coverage as required by this section shall also 
include a provision allowing a former employee, surviving 
spouse, or dependent at the expiration of the post-termination 
or layoff coverage provided in subdivision 2 to obtain from the 
health maintenance organization, at the former employee's, 
spouse's, or dependent's option and expense, without further 
evidence of insurability and without interruption of coverage, 
an individual health maintenance contract.  Effective January 1, 
1985, enrollees who have become nonresidents of the health 
maintenance organization's service area shall be given the 
option, to be arranged by the health maintenance organization, 
of a number three qualified plan, a number two qualified plan, 
or a number one qualified plan as provided by section 62E.06, 
subdivisions 1 to 3 if an arrangement with an insurer can 
reasonably be made by the health maintenance organization.  This 
option shall be made available at the enrollee's expense, 
without further evidence of insurability and without 
interruption of coverage.  
    A policy providing reduced benefits at a reduced premium 
rate may be accepted by the employee, the spouse, or a dependent 
in lieu of the optional coverage otherwise required by this 
subdivision. 
    The individual policy or contract shall be renewable at the 
option of the individual as long as the individual is not 
covered under another qualified plan as defined in section 
62E.02, subdivision 4, up to age 65 or to the day before the 
date of eligibility for coverage under title XVIII of the Social 
Security Act, as amended.  Any revisions in the table of rate 
for the individual policy shall apply to the covered person's 
original age at entry and shall apply equally to all similar 
policies issued by the insurer. 
    Sec. 61.  Minnesota Statutes 1984, section 62B.05, is 
amended to read: 
    62B.05 [TERM OF CREDIT LIFE INSURANCE AND CREDIT ACCIDENT 
AND HEALTH INSURANCE.] 
    The term of any credit life insurance or credit accident 
and health insurance shall, subject to acceptance by the 
insurer, commence on the date when the debtor becomes obligated 
to the creditor, except that, where a group policy provides 
coverage with respect to existing obligations, the insurance on 
a debtor with respect to the indebtedness shall commence on the 
effective date of the policy.  Where evidence of insurability is 
required and the evidence is furnished more than 30 days after 
the date when the debtor becomes obligated to the creditor, the 
term of the insurance may commence on the date on which the 
insurance company determines the evidence to be satisfactory, 
and in that event there shall be an appropriate refund or 
adjustment of any charge to the debtor for insurance.  The term 
of the insurance shall not extend more than 15 days beyond the 
scheduled maturity date of the indebtedness except when extended 
without additional cost to the debtor. 
    If an indebtedness is prepaid in full before its scheduled 
maturity, except by a new loan from or by refinancing by the 
same creditor and except by performance of the insurer's 
obligation under the policy:  (a) any policy or certificate of 
insurance providing credit life or credit accident and health 
benefits procured by or through a creditor and for which the 
premium has been paid by the debtor or debtors out of the 
proceeds of the indebtedness shall be cancelled upon surrender 
of the policy, certificate or other evidence, and a refund shall 
be paid or credited as provided in section 62B.08; and (b) the 
creditor then holding the evidence of indebtedness shall notify 
the debtor in writing of his right to surrender and cancel any 
outstanding policy of credit life or accident and health 
insurance procured by or through a creditor and to receive a 
refund if the unearned premium is $3 or more.  This notice shall 
be written in clear and conspicuous language.  If the policy or 
certificate by its own terms terminates upon prepayment in full 
before its scheduled maturity date, it need not be surrendered 
but a refund shall be paid or credited as provided in section 
62B.08. 
    If an indebtedness is prepaid in full before its scheduled 
maturity date by a new loan from or by refinancing by the same 
creditor through which the debtor or debtors procured a policy 
or certificate of credit life or credit accident and health 
insurance issued after August 1, 1977, the insurance shall be 
deemed cancelled if any new policy or certificate for the same 
type of insurance is issued in connection with the new loan or 
refinancing, and a refund shall be paid or credited as provided 
in section 62B.08.  For the purposes of this subdivision, an 
assignee creditor and an assignor creditor shall not be 
construed to be the same creditor. 
    Sec. 62.  Minnesota Statutes 1984, section 62D.19, is 
amended to read: 
    62D.19 [UNREASONABLE EXPENSES.] 
    No health maintenance organization shall incur or pay for 
any expense of any nature which is unreasonably high in relation 
to the value of the service or goods provided.  The commissioner 
of commerce health shall, pursuant to the administrative 
procedures act, promulgate rules to implement and enforce this 
section by rules adopted under this section. 
    In an effort to achieve the stated purposes of sections 
62D.01 to 62D.29; in order to safeguard the underlying nonprofit 
status of health maintenance organizations; and to ensure that 
the payment of health maintenance organization moneys to major 
participating entities results in a corresponding benefit to the 
health maintenance organization and its enrollees, when 
determining whether an organization has incurred an unreasonable 
expense in relation to a major participating entity, due 
consideration shall be given to, in addition to any other 
appropriate factors, whether the officers and trustees of the 
health maintenance organization have acted with good faith and 
in the best interests of the health maintenance organization in 
entering into, and performing under, a contract under which the 
health maintenance organization has incurred an expense. 
    Sec. 63.  Minnesota Statutes 1984, section 62E.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [BOARD OF DIRECTORS; ORGANIZATION.] The board of 
directors of the association shall be made up of seven 
individuals selected by participating members, subject to 
approval by the commissioner and two public members appointed by 
the governor.  In determining voting rights at members' 
meetings, each member shall be entitled to vote in person or 
proxy.  The vote shall be a weighted vote based upon the 
member's cost of self insurance, accident and health insurance 
premium, subscriber contract charges, or health maintenance 
contract payment derived from or on behalf of Minnesota 
residents in the previous calendar year, as determined by the 
commissioner.  In approving members of the board, the 
commissioner shall consider, among other things, whether all 
types of members are fairly represented.  Members of the board 
may be reimbursed from the moneys of the association for 
expenses incurred by them as members, but shall not otherwise be 
compensated by the association for their services.  The costs of 
conducting meetings of the association and its board of 
directors shall be borne by members of the association. 
    Sec. 64.  Minnesota Statutes 1984, section 62E.12, is 
amended to read: 
    62E.12 [MINIMUM BENEFITS OF COMPREHENSIVE HEALTH INSURANCE 
PLAN.] 
    The association through its comprehensive health insurance 
plan shall offer policies which provide the benefits of a number 
one qualified plan, a number two qualified plan and a qualified 
medicare supplement plan.  They shall offer health maintenance 
organization contracts in those areas of the state where a 
health maintenance organization has agreed to make the coverage 
available and has been selected as a writing carrier.  
Notwithstanding the provisions of section 62E.06 the state plan 
shall exclude coverage of services of a private duty nurse other 
than on an inpatient basis and any charges for treatment in a 
hospital located outside of the state of Minnesota in which the 
covered person is receiving treatment for a mental or nervous 
disorder, unless similar treatment for the mental or nervous 
disorder is medically necessary, unavailable in Minnesota and 
provided upon referral by a licensed Minnesota medical 
practitioner.  
    Sec. 65.  Minnesota Statutes 1984, section 62E.16, is 
amended to read: 
    62E.16 [CONVERSION PRIVILEGES.] 
    Every program of self insurance, policy of group accident 
and health insurance or contract of coverage by a health 
maintenance organization written or renewed in this state, shall 
include, in addition to the provisions required by section 
62A.17, the right to convert to an individual coverage qualified 
plan without the addition of underwriting restrictions if the 
individual insured leaves the group regardless of the reason for 
leaving the group, or upon cancellation or termination of the 
coverage for the group except where uninterrupted and continuous 
group coverage is otherwise provided to the group.  The required 
conversion contract must treat pregnancy the same as any other 
covered illness under the conversion contract.  The person may 
exercise his right to conversion within 30 days of leaving the 
group or within 30 days following his receipt of due notice of 
cancellation or termination of coverage of the group and upon 
payment of premiums from the date of termination or 
cancellation.  Due notice of cancellation or termination of 
coverage for a group shall be provided to each employee having 
coverage in the group by the insurer, self insurer or health 
maintenance organization cancelling or terminating the coverage 
except where reasonable evidence indicates that uninterrupted 
and continuous group coverage is otherwise provided to the 
group.  Every employer having a policy of group accident and 
health insurance, group subscriber or contract of coverage by a 
health maintenance organization shall, upon request, provide the 
insurer or health maintenance organization a list of the names 
and addresses of covered employees.  Plans of health coverage 
shall also include a provision which, upon the death of the 
individual in whose name the contract was issued, permits every 
other individual then covered under the contract to elect, 
within the period specified in the contract, to continue his 
coverage under the same or a different contract without the 
addition of underwriting restrictions until he would have ceased 
to have been entitled to coverage had the individual in whose 
name the contract was issued lived.  An individual conversion 
contract issued by a health maintenance organization shall not 
be deemed to be an individual enrollment contract for the 
purposes of section 62D.10. 
    Sec. 66.  Minnesota Statutes 1984, section 65B.03, is 
amended to read: 
    65B.03 [GOVERNING COMMITTEE.] 
    Subdivision 1.  [MEMBERSHIP.] The commissioner shall direct 
that an election be held among every insurer subject to this 
chapter, for the election of a facility governing 
committee.  The governing committee shall be made up of eight 
individuals selected by participating members of the facility 
and one public member appointed by the governor to two-year 
terms.  Each insurer member of the governing committee shall be 
a participating member.  
    Each participating member serving on the governing 
committee shall be represented by a salaried employee of that 
participating member, and not more than one participating member 
in a group under the same management shall serve on the 
governing committee at the same time.  The commissioner of 
commerce or his designee shall be an ex officio member of the 
governing committee.  In the event of a tie vote on any matter 
before the governing committee, the commissioner or his designee 
may cast a vote to break the tie.  The composition of the 
governing committee may be revised by recommendation of the 
existing governing committee and approval of the commissioner.  
    Subd. 2.  [TERMS OF OFFICE.] The committee so elected shall 
become the governing committee of the facility, effective on a 
date to be specified by the commissioner.  Thereafter, The 
governing committee members shall be elected to serve 
annual two-year terms.  Vacancies shall be filled as provided in 
the plan of operation. 
    Sec. 67.  Minnesota Statutes 1984, section 65B.44, 
subdivision 4, is amended to read: 
    Subd. 4.  [FUNERAL AND BURIAL EXPENSES.] Funeral and burial 
benefits shall be reasonable expenses not in excess of 
$1,250 $2,000, including expenses for cremation or delivery 
under the Uniform Anatomical Gift Act, sections 525.921 to 
525.93. 
    Sec. 68.  Minnesota Statutes 1984, section 65B.49, is 
amended by adding a subdivision to read:  
    Subd. 3a.  [UNINSURED AND UNDERINSURED MOTORIST COVERAGES.] 
(1) No plan of reparation security may be renewed, delivered or 
issued for delivery, or executed in this state with respect to 
any motor vehicle registered or principally garaged in this 
state unless uninsured and underinsured motorist coverages are 
provided therein.  The coverages combined, at a minimum, must 
provide limits of $25,000 because of injury to or the death of 
one person in any accident and $50,000 because of injury to or 
the death of two or more persons in any accident.  In the case 
of injury to, or the death of, two or more persons in any 
accident, the amount available to any one person must not exceed 
the coverage limit provided for injury to, or the death of, one 
person in any accident.  For purposes of this subdivision, 
uninsured motorist coverage and underinsured motorist coverage 
shall be a single coverage. 
    (2) Every owner of a motor vehicle registered or 
principally garaged in this state shall maintain uninsured and 
underinsured motorist coverages as provided in this subdivision. 
    (3) No reparation obligor is required to provide limits of 
uninsured and underinsured motorist coverages in excess of the 
bodily injury liability limit provided by the applicable plan of 
reparation security. 
    (4) No recovery shall be permitted under the uninsured and 
underinsured motorist coverages of this section for basic 
economic loss benefits paid or payable, or which would be 
payable but for any applicable deductible.  
    (5) If at the time of the accident the injured person is 
occupying a motor vehicle, the limit of liability for uninsured 
and underinsured motorist coverages available to the injured 
person is the limit specified for that motor vehicle.  However, 
if the injured person is occupying a motor vehicle of which the 
injured person is not an insured, the injured person may be 
entitled to excess insurance protection afforded by a policy in 
which the injured party is otherwise insured.  The excess 
insurance protection is limited to the extent of covered damages 
sustained, and further is available only to the extent by which 
the limit of liability for like coverage applicable to any one 
motor vehicle listed on the automobile insurance policy of which 
the injured person is an insured exceeds the limit of liability 
of the coverage available to the injured person from the 
occupied motor vehicle. 
    If at the time of the accident the injured person is not 
occupying a motor vehicle, the injured person is entitled to 
select any one limit of liability for any one vehicle afforded 
by a policy under which the injured person is insured. 
    (6) Regardless of the number of policies involved, vehicles 
involved, persons covered, claims made, vehicles or premiums 
shown on the policy, or premiums paid, in no event shall the 
limit of liability for uninsured and underinsured motorist 
coverages for two or more motor vehicles be added together to 
determine the limit of insurance coverage available to an 
injured person for any one accident. 
    (7) The uninsured and underinsured motorist coverages 
required by this subdivision do not apply to bodily injury of 
the insured while occupying a motor vehicle owned by the 
insured, unless the occupied vehicle is an insured motor vehicle.
    Sec. 69.  Minnesota Statutes 1984, section 65B.63, 
subdivision 1, is amended to read: 
    Subdivision 1.  Reparation obligors providing basic 
economic loss insurance in this state may shall organize and 
maintain, subject to approval and regulation by the 
commissioner, an assigned claims bureau and an assigned claims 
plan, and adopt rules for their operation and for the assessment 
of costs on a fair and equitable basis consistent with sections 
65B.41 to 65B.71.  The assigned claims bureau shall be managed 
by a governing committee made up of four individuals selected by 
the insurer members, one individual selected by the self-insurer 
members, and two public members appointed by the governor to 
two-year terms.  If such obligors do not organize and 
continuously maintain an assigned claims bureau and an assigned 
claims plan in a manner considered by the commissioner of 
commerce to be consistent with sections 65B.41 to 65B.71, he 
shall organize and maintain an assigned claims bureau and an 
assigned claims plan.  Each reparation obligor providing basic 
economic loss insurance in this state shall participate in the 
assigned claims bureau and the assigned claims plan.  Costs 
incurred shall be allocated fairly and equitably among the 
reparation obligors. 
    Sec. 70.  Minnesota Statutes 1984, section 67A.25, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WHAT COMPANIES MAY COME UNDER LAWS 1909, 
CHAPTER 411.] Any township mutual fire insurance company 
heretofore organized may exercise, after the passage of Laws 
1909, Chapter 411, all of the rights conferred thereby that are 
within the powers and privileges of its certificate or articles 
of incorporation, or it may be reincorporated thereunder.  No 
such company already organized shall be required to 
reincorporate thereunder in order to avail itself of the 
privileges thereof.  
    Every township mutual fire insurance company now doing 
business in this state shall have the right to continue 
transacting such business until the first day of March 
succeeding the passage thereof; and, if the commissioner is 
satisfied that the company is transacting its business in 
accordance therewith, he shall on the first day of each 
succeeding March June issue a license to the company authorizing 
it to transact business until the first day of March May 31 
following the date of the license.  
    Sec. 71.  Minnesota Statutes 1984, section 72A.20, is 
amended by adding a subdivision to read:  
    Subd. 17.  [RETURN OF PREMIUMS UPON DEATH OF INSURED.] 
Refusing, upon surrender of an individual policy, to refund to 
the estate of the insured all unearned premiums paid on the 
policy covering the insured as of the time of the insured's 
death if the unearned premium is for a period of more than one 
month.  
    The insurer may deduct from the premium any previously 
accrued claim for loss or damage under the policy.  
    For the purposes of this section, a premium is unearned 
during the period of time the insurer has not been exposed to 
any risk of loss. 
    Sec. 72.  Minnesota Statutes 1984, section 79.252, 
subdivision 4, is amended to read: 
    Subd. 4.  [RESPONSIBILITIES.] Assigned risk policies and 
contracts of coverage shall be subject to premium tax pursuant 
to section 60A.15, and special compensation fund assessments 
pursuant to section 176.131, subdivision 10.  The assigned risk 
plan shall be a member of the reinsurance association for the 
purposes of sections 79.34 to 79.40 and shall be deemed to have 
selected the higher may select either retention limit provided 
in section 79.34, subdivision 2.  
    Sec. 73.  Minnesota Statutes 1984, section 79.62, is 
amended to read: 
    79.62 [DATA SERVICE ORGANIZATIONS; LICENSING, EXAMINATION.] 
    Subdivision 1.  [LICENSE REQUIRED.] No data service 
organization shall provide any service and no insurer shall use 
the services of a data service organization unless the 
organization is licensed by the commissioner.  
    Subd. 2.  [PROCEDURE; APPLICATION.] A data service 
organization shall apply for a license in a form and manner 
prescribed by the commissioner.  The application of a data 
service organization shall include:  
    (a) A copy of its constitution, articles of incorporation, 
bylaws, and other rules pertaining to the conduct of its 
business;  
    (b) A plan and narrative describing how it will perform the 
activities required by section 79.61;  
    (c) A statement showing its technical qualifications; and 
    (d) Any other information that the commissioner may 
reasonably require.  
    Subd. 2a.  [EMPLOYER REPRESENTATION.] The commissioner may 
appoint two representatives of employers to serve on the board 
of directors of each licensed data service organization.  These 
directors serve for a term of two years and are entitled to vote 
on all matters under consideration. 
    Subd. 3.  [ISSUANCE.] The commissioner, upon finding that 
the applicant organization is qualified to provide the services 
required and proposed, or has contracted with a licensed data 
service organization to purchase these services which are 
required by chapter 79 but are not provided directly by the 
applicant, and that all requirements of law are met, shall issue 
a license.  Licenses shall remain in effect until the licensee 
withdraws from business or until the license is suspended or 
revoked Each license is subject to annual renewal effective June 
30.  Each new or renewal license application must be accompanied 
by a fee of $50.  
    Subd. 4.  [SUSPENSION; REVOCATION.] The commissioner may, 
after a hearing on the record, revoke or suspend the license of 
a data service organization if he finds that the organization is 
not in compliance with the requirements of chapter 79 or rules 
issued thereunder.  
    Subd. 5.  [LICENSEE EXAMINATION.] The commissioner may 
examine any licensed data service organization or applicant for 
this licence to determine whether its activities and practices 
comply with law.  The cost of the examination shall be paid by 
the examined organization pursuant to section 60A.03.  
    Sec. 74.  Minnesota Statutes 1984, section 138.94, is 
amended to read:  
    138.94 [STATE HISTORICAL CENTER.] 
    The Historical building at 690 Cedar Street and the land 
housing the Mechanic Arts gymnasium, parking lot, and any other 
properties between those entities and the Historical building at 
690 Cedar Street is hereby designated as the State Historical 
Center, and is to be used for such purposes notwithstanding any 
other law to the contrary.  Authority for administration and 
control of the State Historical Center is conferred on the 
Minnesota historical society.  As such, The society is not 
exempt from rental or lease costs by the state.  The state will 
maintain and provide custodial, security, and climate control 
services for the Historical Center.  
    Sec. 75.  Minnesota Statutes 1984, section 168.012, 
subdivision 1, is amended to read:  
    Subdivision 1.  Vehicles owned and used solely in the 
transaction of official business by representatives of foreign 
powers, by the federal government, the state, or any political 
subdivision thereof, or vehicles owned and used exclusively by 
educational institutions and used solely in the transportation 
of pupils to and from such institutions, shall be exempt from 
the provision of this chapter requiring payment of tax or 
registration fees.  Vehicles owned by the federal government, 
municipal fire apparatus, police patrols and ambulances, the 
general appearance of which is unmistakable, shall not be 
required to register or display number plates.  Vehicles used in 
general police work, arson investigations, and passenger 
vehicles, station wagons, and buses owned or operated by the 
department of corrections shall be registered and shall display 
passenger vehicle classification license number plates which 
shall be furnished by the registrar at cost.  All other motor 
vehicles shall be registered and display tax exempt number 
plates which shall be furnished by the registrar at cost.  All 
vehicles required to display tax exempt number plates shall have 
the name of the state department or public subdivision on the 
vehicle plainly printed on both sides thereof in letters not 
less than 2-1/2 inches high, one inch wide and of a 
three-eighths inch stroke; except that each state hospital and 
institution for the mentally ill and mentally retarded may have 
one vehicle without the required printing on the sides of the 
vehicle.  Such printing shall be in a color giving a marked 
contrast with that of the part of the vehicle on which it is 
placed and shall be done with a good quality of paint that will 
endure throughout the term of the registration.  The printing 
must be on a part of the vehicle itself and not on a removable 
plate or placard of any kind and shall be kept clean and visible 
at all times; except that a removable plate or placard may be 
utilized on vehicles leased or loaned to a political subdivision.
The owner of any such vehicle desiring to come under the 
foregoing exemption provisions shall first notify the chief of 
the state patrol who shall provide suitable seals and cause the 
same to be affixed to any such vehicle. 
    Sec. 76.  Minnesota Statutes 1984, section 168.12, 
subdivision 1, is amended to read: 
    Subdivision 1.  [NUMBER PLATES; VISIBILITY, PERIODS OF 
ISSUANCE.] The registrar, upon the approval and payment, shall 
issue to the applicant the number plates required by law, 
bearing the state name and the number assigned.  The number 
assigned may be a combination of a letter or sign with figures.  
The color of the plates and the color of the abbreviation of the 
state name and the number assigned shall be in marked contrast.  
The plates shall be lettered, spaced, or distinguished to 
suitably indicate the registration of the vehicle according to 
the rules of the registrar, and when a vehicle is registered on 
the basis of total gross weight, the plates issued shall clearly 
indicate by letters or other suitable insignia the maximum gross 
weight for which the tax has been paid.  These number plates 
shall be so treated as to be at least 100 times brighter than 
the conventional painted number plates.  When properly mounted 
on an unlighted vehicle, these number plates, when viewed from a 
vehicle equipped with standard headlights, shall be visible for 
a distance of not less than 1,500 feet and readable for a 
distance of not less than 110 feet.  The registrar shall issue 
these number plates for the following periods: 
    (1) Number plates issued pursuant to sections 168.27, 
subdivisions 16 and 17, and 168.053 shall be for a one year 
period; 
    (2) New number plates issued pursuant to section 168.012, 
subdivision 1, shall be issued to a vehicle for as long as it is 
owned by the exempt agency and shall not be transferable from 
one vehicle to another but may be transferred with the vehicle 
from one tax exempt agency to another; 
    (3) Plates issued for passenger automobiles as defined in 
section 168.011, subdivision 7, motorcycles, motorized bicycles, 
and motor scooters shall be issued for the life of the vehicle a 
six-year period starting not later than October 1986, or until 
the next general reissuance of plates every six years 
thereafter, whichever is less; and 
    (4) Plates for any vehicle not specified in clauses (1), 
(2) and (3), except for trailers as hereafter provided, shall be 
issued for the life of the vehicle.  Beginning with number 
plates issued for the year 1981, plates issued for trailers with 
a total gross weight of 3,000 pounds or less shall be issued for 
the life of the trailer and shall be not more than seven inches 
in length and four inches in width. 
    In a year in which plates are not issued, the registrar 
shall issue for each registration a tab or sticker to designate 
the year of registration.  This tab or sticker shall show the 
calendar year or years for which issued, and is valid only for 
that period.  The number plates, number tabs, or stickers issued 
for a motor vehicle may not be transferred to another motor 
vehicle during the period for which it is issued. 
    Notwithstanding any other provision of this subdivision, 
number plates issued to a vehicle which is used for 
behind-the-wheel instruction in a driver education course in a 
public school may be transferred to another vehicle used for the 
same purpose without payment of any additional fee.  The 
registrar shall be notified of each transfer of number plates 
under this paragraph, and may prescribe a form for notification. 
    Sec. 77.  Minnesota Statutes 1984, section 168.12, 
subdivision 5, is amended to read:  
    Subd. 5.  [ADDITIONAL FEE.] In addition to any fee 
otherwise authorized or any tax otherwise imposed upon any motor 
vehicle, the payment of which is required as a condition to the 
issuance of any number license plate or plates, the commissioner 
of public safety may impose a fee of up to 25 cents but not to 
exceed the actual cost of manufacture and distribution of any $2 
for a license plate for a motorcycle, motorized bicycle, or 
motorized sidecar, and $3 for license plates, other than license 
plates issued pursuant to section 168.27, subdivisions 16 and 
17, for passenger automobiles; provided that no fee is required 
for plates issued within one calendar year before a general 
reissuance of plates under subdivision 1.  Graphic design 
license plate or plates upon the issuance of said plate or 
plates, provided that these plates shall only be issued for 
vehicles registered pursuant to section 168.017 and recreational 
vehicles registered pursuant to section 168.013, subdivision 1g. 
    Sec. 78.  Minnesota Statutes 1984, section 174.32, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A transit 
assistance program is established to provide transit assistance 
within the state.  The commissioner shall provide financial 
assistance from the fund created in subdivision 2 to eligible 
recipients for transit service activities as provided in this 
section. 
    Sec. 79.  Minnesota Statutes 1984, section 174.32, 
subdivision 2, is amended to read: 
    Subd. 2.  [TRANSIT ASSISTANCE FUND; DISTRIBUTION.] A 
transit assistance fund is created for the purpose of receiving 
money distributed under section 297B.09.  The commissioner shall 
distribute 80 Eighty percent of the receipts of the fund must be 
placed into a metropolitan account for distribution to 
recipients located in the metropolitan area and 20 percent into 
a separate account for distribution to recipients located 
outside of the metropolitan area.  The regional transit board 
created by section 473.373 is responsible for distributing 
assistance from the metropolitan account, and the commissioner 
is responsible for distributing assistance from the other 
account. 
    Sec. 80.  Minnesota Statutes 1984, section 174.32, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBLE RECIPIENTS.] A legislatively 
established public transit commission; a public authority 
organized and existing under chapter 398A; a county or statutory 
or home rule charter city operating, intending to operate, or 
providing financial assistance to a transit service; a rail 
authority; or a private operator of public transit is eligible 
for assistance under the program.  The National Railroad 
Passenger Corporation, known as Amtrak, and any trolley system 
outside the metropolitan area are not eligible for assistance 
under the program. 
    Sec. 81.  Minnesota Statutes 1984, section 174.32, is 
amended by adding a subdvision to read: 
    Subd. 6.  [INVESTMENT OF TRANSIT ASSISTANCE FUND.] For 
money deposited in the transit assistance fund on or after 
January 15, 1985, the commissioner of transportation shall 
certify to the state board of investment the amount of the 
transit assistance fund that in the judgment of the commissioner 
is not required for immediate use.  The certified amount of the 
transit assistance fund not currently needed shall be invested 
by the state board of investment subject to section 11A.25.  All 
investment income and all investment losses attributable to the 
investments must be credited to the transit assistance fund.  
The commissioner of finance is the custodian of securities 
purchased under this section. 
    Sec. 82.  [219.98] [FEES FOR APPLYING FOR BOARD ORDER.] 
    A person other than the state, a state agency, or a 
political subdivision, who applies for an order of the board 
relating to clearances under section 219.47, permitting the 
abandonment or removal of track under section 219.741, or 
permitting abandonment of a station or discontinuance or 
reduction of agency service under section 219.85, shall pay, at 
the time the application is filed, into the state treasury a fee 
of $100.  A person other than the state, a state agency, or a 
political subdivision, applying for an order of the board under 
any other provision of this chapter shall pay, at the time the 
application is filed, into the state treasury a fee of $50. 
    Sec. 83.  Minnesota Statutes 1984, section 240.04, 
subdivision 4, is amended to read:  
    Subd. 4.  [MEDICAL SERVICES.] The commission may appoint a 
medical officer who must be a doctor of veterinary medicine and 
who serves at its pleasure in the unclassified service.  He 
shall, while employed by the commission, devote full time to his 
duties, which are:  
    (a) to supervise the formulation, administration, and 
evaluation of all medical tests the commission's rules require 
or authorize;  
    (b) to advise the commission on all aspects of veterinary 
medicine relating to its powers and duties; and 
    (c) to supervise all personnel involved in medical testing, 
subject to the supervision of the executive secretary.  
    The commission may obtain medical services as required by 
contract with an institution which teaches animal health 
sciences within the state.  If no medical officer is appointed, 
his duties may be assigned to the executive secretary.  
    The commission may require that a licensee reimburse it for 
the costs of services provided by assistant veterinarians. 
    Sec. 84.  [240.155] [REIMBURSEMENT ACCOUNT.] 
    Money received by the commission as reimbursement for the 
costs of services provided by assistant veterinarians and 
stewards must be deposited in the state treasury and credited to 
a racing commission reimbursement account.  Receipts are 
appropriated to the commission to pay the costs of providing the 
services. 
    Sec. 85.  Minnesota Statutes 1984, section 240.24, as 
amended by Laws 1985, chapter 212, section 21, is amended to 
read: 
    240.24 [MEDICATION.] 
    Subdivision 1.  [RULES.] The commission shall make and 
enforce rules governing medication and medical testing for 
horses running at licensed racetracks.  The rules must provide 
that no medication, as the commission defines that term by rule, 
may be administered to a horse within 48 hours of a race it runs 
at a licensed racetrack.  The commission shall by rule establish 
the qualifications for laboratories used by it as testing 
laboratories to enforce its rules under this section.  
    Subd. 2.  [FEES.] The commission shall establish by rule a 
fee or schedule of fees to recover the costs of medical testing 
of horses running at racetracks licensed by the commission.  
Fees charged for the testing of horses shall cover part of the 
cost of the medical testing laboratory but not exceed $30 per 
horse.  Fee receipts shall be deposited in the state treasury 
and credited to the equine drug testing account in the special 
revenue general fund. 
    Sec. 86.  Minnesota Statutes 1984, section 297A.25, 
subdivision 1, is amended to read: 
    Subdivision 1.  The following are specifically exempted 
from the taxes imposed by sections 297A.01 to 297A.44: 
    (a) The gross receipts from the sale of food products 
including but not limited to cereal and cereal products, butter, 
cheese, milk and milk products, oleomargarine, meat and meat 
products, fish and fish products, eggs and egg products, 
vegetables and vegetable products, fruit and fruit products, 
spices and salt, sugar and sugar products, coffee and coffee 
substitutes, tea, cocoa and cocoa products, and food products 
which are not taxable pursuant to section 297A.01, subdivision 
3, clause (c) and which are sold by a retailer, organized as a 
nonprofit corporation or association, within a place located on 
property owned by the state or an agency or instrumentality of 
the state, the entrance to which is subject to an admission 
charge.  This exemption does not include the following:  
     (i) candy and candy products, except when sold for 
fundraising purposes by a nonprofit organization that provides 
educational and social activities for young people primarily 
aged 18 and under; 
     (ii) carbonated beverages, beverages commonly referred to 
as soft drinks containing less than 15 percent fruit juice, or 
bottled water other than noncarbonated and noneffervescent 
bottled water sold in individual containers of one-half gallon 
or more in size; 
     (b) The gross receipts from the sale of prescribed drugs 
and medicine intended for use, internal or external, in the 
cure, mitigation, treatment or prevention of illness or disease 
in human beings and products consumed by humans for the 
preservation of health, including prescription glasses, 
therapeutic and prosthetic devices, but not including cosmetics 
or toilet articles notwithstanding the presence of medicinal 
ingredients therein; 
       (c) The gross receipts from the sale of and the storage, 
use or other consumption in Minnesota of tangible personal 
property, tickets, or admissions, electricity, gas, or local 
exchange telephone service, which under the Constitution or laws 
of the United States or under the Constitution of Minnesota, the 
state of Minnesota is prohibited from taxing; 
       (d) The gross receipts from the sale of tangible personal 
property (i) which, without intermediate use, is shipped or 
transported outside Minnesota by the purchaser and thereafter 
used in a trade or business or is stored, processed, fabricated 
or manufactured into, attached to or incorporated into other 
tangible personal property transported or shipped outside 
Minnesota and thereafter used in a trade or business outside 
Minnesota, and which is not thereafter returned to a point 
within Minnesota, except in the course of interstate commerce 
(storage shall not constitute intermediate use); provided that 
the property is not subject to tax in that state or country to 
which it is transported for storage or use, or, if subject to 
tax in that other state, that state allows a similar exemption 
for property purchased therein and transported to Minnesota for 
use in this state; except that sales of tangible personal 
property that is shipped or transported for use outside 
Minnesota shall be taxed at the rate of the use tax imposed by 
the state to which the property is shipped or transported, 
unless that state has no use tax, in which case the sale shall 
be taxed at the rate generally imposed by this state; and 
provided further that sales of tangible personal property to be 
used in other states or countries as part of a maintenance 
contract shall be specifically exempt; or (ii) which the seller 
delivers to a common carrier for delivery outside Minnesota, 
places in the United States mail or parcel post directed to the 
purchaser outside Minnesota, or delivers to the purchaser 
outside Minnesota by means of the seller's own delivery 
vehicles, and which is not thereafter returned to a point within 
Minnesota, except in the course of interstate commerce; 
    (e) The gross receipts from the sale of packing materials 
used to pack and ship household goods, the ultimate destination 
of which is outside the state of Minnesota and which are not 
thereafter returned to a point within Minnesota, except in the 
course of interstate commerce; 
    (f) The gross receipts from the sale of and storage, use or 
consumption of petroleum products (i) upon which a tax has been 
imposed under the provisions of chapter 296, whether or not any 
part of said tax may be subsequently refunded, or (ii) which are 
used in the improvement of agricultural land by constructing, 
maintaining, and repairing drainage ditches, tile drainage 
systems, grass waterways, water impoundment, and other erosion 
control structures; 
    (g) The gross receipts from the sale of clothing and 
wearing apparel except the following: 
    (i) all articles commonly or commercially known as jewelry, 
whether real or imitation; pearls, precious and semi-precious 
stones, and imitations thereof; articles made of, or ornamented, 
mounted or fitted with precious metals or imitations thereof; 
watches; clocks; cases and movements for watches and clocks; 
gold, gold-plated, silver, or sterling flatware or hollow ware 
and silver-plated hollow ware; opera glasses; lorgnettes; marine 
glasses; field glasses and binoculars; 
    (ii) articles made of fur on the hide or pelt, and articles 
of which such fur is the component material or chief value, but 
only if such value is more than three times the value of the 
next most valuable component material; 
     (iii) perfume, essences, extracts, toilet waters, 
cosmetics, petroleum jellies, hair oils, pomades, hair 
dressings, hair restoratives, hair dyes, aromatic cachous and 
toilet powders.  The tax imposed by this act shall not apply to 
lotion, oil, powder, or other article intended to be used or 
applied only in the case of babies; 
       (iv) trunks, valises, traveling bags, suitcases, satchels, 
overnight bags, hat boxes for use by travelers, beach bags, 
bathing suit bags, brief cases made of leather or imitation 
leather, salesmen's sample and display cases, purses, handbags, 
pocketbooks, wallets, billfolds, card, pass, and key cases and 
toilet cases; 
       (h) The gross receipts from the sale of and the storage, 
use, or consumption of all materials, including chemicals, 
fuels, petroleum products, lubricants, packaging materials, 
including returnable containers used in packaging food and 
beverage products, feeds, seeds, fertilizers, electricity, gas 
and steam, used or consumed in agricultural or industrial 
production of personal property intended to be sold ultimately 
at retail, whether or not the item so used becomes an ingredient 
or constituent part of the property produced.  Such production 
shall include, but is not limited to, research, development, 
design or production of any tangible personal property, 
manufacturing, processing (other than by restaurants and 
consumers) of agricultural products whether vegetable or animal, 
commercial fishing, refining, smelting, reducing, brewing, 
distilling, printing, mining, quarrying, lumbering, generating 
electricity and the production of road building materials.  Such 
production shall not include painting, cleaning, repairing or 
similar processing of property except as part of the original 
manufacturing process.  Machinery, equipment, implements, tools, 
accessories, appliances, contrivances, furniture and fixtures, 
used in such production and fuel, electricity, gas or steam used 
for space heating or lighting, are not included within this 
exemption; however, accessory tools, equipment and other short 
lived items, which are separate detachable units used in 
producing a direct effect upon the product, where such items 
have an ordinary useful life of less than 12 months, are 
included within the exemption provided herein; 
     (i) The gross receipts from the sale of and storage, use or 
other consumption in Minnesota of tangible personal property 
(except as provided in section 297A.14) which is used or 
consumed in producing any publication regularly issued at 
average intervals not exceeding three months, and any such 
publication.  For purposes of this subsection, "publication" as 
used herein shall include, without limiting the foregoing, a 
legal newspaper as defined by Minnesota Statutes 1965, section 
331.02, and any supplements or enclosures with or part of said 
newspaper; and the gross receipts of any advertising contained 
therein or therewith shall be exempt.  For this purpose, 
advertising in any such publication shall be deemed to be a 
service and not tangible personal property, and persons or their 
agents who publish or sell such newspapers shall be deemed to be 
engaging in a service with respect to gross receipts realized 
from such newsgathering or publishing activities by them, 
including the sale of advertising.  The term "publication" shall 
not include magazines and periodicals sold over the counter.  
Machinery, equipment, implements, tools, accessories, 
appliances, contrivances, furniture and fixtures used in such 
publication and fuel, electricity, gas or steam used for space 
heating or lighting, are not exempt; 
      (j) The gross receipts from all sales, including sales in 
which title is retained by a seller or a vendor or is assigned 
to a third party under an installment sale or lease purchase 
agreement under section 465.71, of tangible personal property 
to, and all storage, use or consumption of such property by, the 
United States and its agencies and instrumentalities or a state 
and its agencies, instrumentalities and political subdivisions. 
Sales exempted by this clause include sales pursuant to section 
297A.01, subdivision 3, clauses (d) and (f).  This exemption 
shall not apply to building, construction or reconstruction 
materials purchased by a contractor or a subcontractor as a part 
of a lump-sum contract or similar type of contract with a 
guaranteed maximum price covering both labor and materials for 
use in the construction, alteration or repair of a building or 
facility.  This exemption does not apply to construction 
materials purchased by tax exempt entities or their contractors 
to be used in constructing buildings or facilities which will 
not be used principally by the tax exempt entities; 
      (k) The gross receipts from the isolated or occasional sale 
of tangible personal property in Minnesota not made in the 
normal course of business of selling that kind of property, and 
the storage, use, or consumption of property acquired as a 
result of such a sale.  For purposes of this clause, sales by a 
nonprofit organization shall be deemed to be "isolated or 
occasional" if they occur at sale events that have a duration of 
three or fewer consecutive days.  The granting of the privilege 
of admission to places of amusement and the privilege of use of 
amusement devices by a nonprofit organization at an isolated or 
occasional event conducted on property owned or leased for a 
continuous period of more than 30 days by the nonprofit 
organization are also exempt.  The exemption provided for 
isolated sales of tangible personal property and of the granting 
of admissions or the privilege of use of amusement devices by 
nonprofit organizations pursuant to this clause shall be 
available only if the sum of the days on which the organization 
and any subsidiary nonprofit organization sponsored by it that 
does not have a separate sales tax exemption permit conduct 
sales of tangible personal property, plus the days with respect 
to which the organization charges for the use of amusement 
devices or admission to places of amusement, does not exceed 
eight days in a calendar year.  For purposes of this clause, a 
"nonprofit organization" means any corporation, society, 
association, foundation, or institution organized and operated 
exclusively for charitable, religious, or educational purposes, 
no part of the net earnings of which inures to the benefit of a 
private individual; 
      (l) The gross receipts from sales of rolling stock and the 
storage, use or other consumption of such property by railroads, 
freight line companies, sleeping car companies and express 
companies taxed on the gross earnings basis in lieu of ad 
valorem taxes.  For purposes of this clause "rolling stock" is 
defined as the portable or moving apparatus and machinery of any 
such company which moves on the road, and includes, but is not 
limited to, engines, cars, tenders, coaches, sleeping cars and 
parts necessary for the repair and maintenance of such rolling 
stock; 
     (m) The gross receipts from sales of airflight equipment 
and the storage, use or other consumption of such property by 
airline companies taxed under the provisions of sections 270.071 
to 270.079.  For purposes of this clause, "airflight equipment" 
includes airplanes and parts necessary for the repair and 
maintenance of such airflight equipment, and flight simulators; 
     (n) The gross receipts from the sale of telephone central 
office telephone equipment used in furnishing intrastate and 
interstate telephone service to the public; 
     (o) The gross receipts from the sale of and the storage, 
use or other consumption by persons taxed under the in lieu 
provisions of chapter 298, of mill liners, grinding rods and 
grinding balls which are substantially consumed in the 
production of taconite, the material of which primarily is added 
to and becomes a part of the material being processed; 
      (p) The gross receipts from the sale of tangible personal 
property to, and the storage, use or other consumption of such 
property by, any corporation, society, association, foundation, 
or institution organized and operated exclusively for 
charitable, religious or educational purposes if the property 
purchased is to be used in the performance of charitable, 
religious or educational functions, or any senior citizen group 
or association of groups that in general limits membership to 
persons age 55 or older and is organized and operated 
exclusively for pleasure, recreation and other nonprofit 
purposes, no part of the net earnings of which inures to the 
benefit of any private shareholders.  Sales exempted by this 
clause include sales pursuant to section 297A.01, subdivision 3, 
clauses (d) and (f).  This exemption shall not apply to 
building, construction or reconstruction materials purchased by 
a contractor or a subcontractor as a part of a lump-sum contract 
or similar type of contract with a guaranteed maximum price 
covering both labor and materials for use in the construction, 
alteration or repair of a building or facility.  This exemption 
does not apply to construction materials purchased by tax exempt 
entities or their contractors to be used in constructing 
buildings or facilities which will not be used principally by 
the tax exempt entities; 
      (q) The gross receipts from the sale of caskets and burial 
vaults; 
      (r) The gross receipts from the sale of an automobile or 
other conveyance if the purchaser is assisted by a grant from 
the United States in accordance with 38 United States Code, 
section 1901, as amended; 
       (s) The gross receipts from the sale to the licensed 
aircraft dealer of an aircraft for which a commercial use permit 
has been issued pursuant to section 360.654, if the aircraft is 
resold while the permit is in effect; 
       (t) The gross receipts from the sale of building materials 
to be used in the construction or remodeling of a residence when 
the construction or remodeling is financed in whole or in part 
by the United States in accordance with 38 United States Code, 
sections 801 to 805, as amended.  This exemption shall not be 
effective at time of sale of the materials to contractors, 
subcontractors, builders or owners, but shall be applicable only 
upon a claim for refund to the commissioner of revenue filed by 
recipients of the benefits provided in title 38 United States 
Code, chapter 21, as amended.  The commissioner shall provide by 
regulation for the refund of taxes paid on sales exempt in 
accordance with this paragraph; 
       (u) The gross receipts from the sale of textbooks which are 
prescribed for use in conjunction with a course of study in a 
public or private school, college, university and business or 
trade school to students who are regularly enrolled at such 
institutions.  For purposes of this clause a "public school" is 
defined as one that furnishes course of study, enrollment and 
staff that meets standards of the state board of education and a 
private school is one which under the standards of the state 
board of education, provides an education substantially 
equivalent to that furnished at a public school.  Business and 
trade schools shall mean such schools licensed pursuant to 
section 141.25; 
     (v) The gross receipts from the sale of and the storage of 
material designed to advertise and promote the sale of 
merchandise or services, which material is purchased and stored 
for the purpose of subsequently shipping or otherwise 
transferring outside the state by the purchaser for use 
thereafter solely outside the state of Minnesota; 
     (w) The gross receipt from the sale of residential heating 
fuels in the following manner: 
     (i) all fuel oil, coal, wood, steam, hot water, propane 
gas, and L.P. gas sold to residential customers for residential 
use; 
     (ii) natural gas sold for residential use to customers who 
are metered and billed as residential users and who use natural 
gas for their primary source of residential heat, for the 
billing months of November, December, January, February, March 
and April; 
     (iii) electricity sold for residential use to customers who 
are metered and billed as residential users and who use 
electricity for their primary source of residential heat, for 
the billing months of November, December, January, February, 
March and April; 
     (x) The gross receipts from the sale or use of tickets or 
admissions to the premises of or events sponsored by an 
association, corporation or other group of persons which 
provides an opportunity for citizens of the state to participate 
in the creation, performance or appreciation of the arts and 
which qualifies as a tax-exempt organization within the meaning 
of Minnesota Statutes 1980, section 290.05, subdivision 1, 
clause (i); 
      (y) The gross receipts from either the sales to or the 
storage, use or consumption of tangible personal property by an 
organization of military service veterans or an auxiliary unit 
of an organization of military service veterans, provided that: 
      (i) the organization or auxiliary unit is organized within 
the state of Minnesota and is exempt from federal taxation 
pursuant to section 501(c), clause (19), of the Internal Revenue 
Code as amended through December 31, 1982; and 
      (ii) the tangible personal property which is sold to or 
stored, used or consumed by the organization or auxiliary unit 
is for charitable, civic, educational, or nonprofit uses and not 
for social, recreational, pleasure or profit uses; 
      (z) The gross receipts from the sale of sanitary napkins, 
tampons, or similar items used for feminine hygiene; 
     (aa) The gross receipts from the sale of a manufactured 
home, as defined in section 327.31, subdivision 6, to be used by 
the purchaser for residential purposes, unless the sale is the 
first retail sale of the manufactured home in this state; 
    (bb) The gross receipts from the sale of equipment used for 
processing solid or hazardous waste at a resource recovery 
facility, as defined in section 115A.03, subdivision 28.  
    Sec. 87.  Minnesota Statutes 1984, section 299A.01, 
subdivision 6, is amended to read:  
    Subd. 6.  The commissioner of public safety shall have the 
power to promulgate such rules and regulations pursuant to 
chapter 14, as are necessary to carry out the purposes of Laws 
1969, chapter 1129.  In addition, the commissioner may prescribe 
by rule fees for the rental of films from the department. 
    Sec. 88.  Minnesota Statutes 1984, section 352D.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COVERAGE.] The following employees, if 
they are in the unclassified service of the state and are 
eligible for coverage under the Minnesota state retirement 
system, shall participate in the unclassified program unless an 
employee gives notice to the executive director of the state 
retirement system within one year following the commencement of 
employment in the unclassified service that the employee desires 
coverage under the regular employee plan.  For the purposes of 
this chapter, an employee who does not file notice with the 
executive director shall be deemed to have exercised the option 
to participate in the unclassified plan. 
    (1) Any employee in the office of the governor, lieutenant 
governor, secretary of state, state auditor, state treasurer, 
attorney general or the state board of investment, 
    (2) The head of any department, division, or agency created 
by statute in the unclassified service, an acting department 
head subsequently appointed to the position, or any employee 
enumerated in sections 15A.081, subdivision 1 or 15A.083, 
subdivision 4, 
    (3) Any permanent, full-time unclassified employee of the 
legislature or any commission or agency of the legislature or a 
temporary legislative employee having shares in the supplemental 
retirement fund as a result of former employment covered by this 
chapter, whether or not eligible for coverage under the 
Minnesota state retirement system, 
    (4) Any person employed in a position established pursuant 
to section 43A.08, subdivision 1, clause (c), or subdivision 1a 
or in a position authorized under a statute creating or 
establishing a department or agency of the state, which is at 
the deputy or assistant head of department or agency or director 
level, 
    (5) The chairman chair, chief administrator, and not to 
exceed nine positions at the division director or administrative 
deputy level of the metropolitan waste control commission as 
designated by the commission,; the chair, executive director, 
and not to exceed three positions at the division director or 
assistant to the chair level of the regional transit board; a 
chief administrator who is an employee of the metropolitan 
transit commission; and the chairman chair, executive director, 
and not to exceed nine positions at the division director or 
administrative deputy level of the metropolitan council as 
designated by the council; provided that upon initial 
designation of all positions provided for in this clause, no 
further designations or redesignations shall be made without 
approval of the board of directors of the Minnesota state 
retirement system, 
    (6) The executive director, associate executive director, 
and not to exceed nine positions of the higher education 
coordinating board in the unclassified service, as designated by 
the higher education coordinating board; provided that upon 
initial designation of all positions provided for in this 
clause, no further designations or redesignations shall be made 
without approval of the board of directors of the Minnesota 
state retirement system, 
    (7) The clerk of the appellate courts appointed pursuant to 
Article VI, Section 2, of the Constitution of the state of 
Minnesota, 
    (8) The chief executive officers of correctional facilities 
operated by the department of corrections and of hospitals and 
nursing homes operated by the department of human services, 
    (9) Any employee whose principal employment is at the state 
ceremonial house, 
    (10) Employees of the Minnesota educational computing 
corporation, and 
    (11) Any employee of the world trade center board. 
    Sec. 89.  Minnesota Statutes 1984, section 360.018, 
subdivision 6, is amended to read: 
    Subd. 6.  [LICENSING OF AIRPORTS AND OTHER AIR NAVIGATION 
FACILITIES.] All proposed airports, restricted landing areas, 
and other air navigation facilities shall be first licensed by 
the commissioner before they, or any of them, shall be used or 
operated.  Any municipality or person acquiring property for the 
purpose of constructing or establishing an airport or restricted 
landing area shall, prior to such acquisition, make application 
to the commissioner for a certificate of approval of the site 
selected and the general purpose or purposes for which the 
property is to be acquired, to insure that the property and its 
use shall conform to minimum standards of safety and shall serve 
public interest.  It shall be unlawful for any municipality or 
officer or employee thereof, or for any person, to operate an 
airport, restricted landing area, or other air navigation 
facility for which an annual license has not been issued by the 
commissioner.  Notwithstanding the foregoing, a personal use 
airport that is more than five miles from a public airport, 
whether publicly or privately owned, need not obtain a license 
from the commissioner. 
    Sec. 90.  Minnesota Statutes 1984, section 360.024, is 
amended to read: 
    360.024 [AIR TRANSPORTATION SERVICES.] 
    The commissioner shall charge users of air transportation 
services provided by the commissioner for all direct and 
indirect operating costs, excluding including salaries and 
acquisition of aircraft.  All receipts for these services shall 
be deposited in the air transportation services account in the 
state airports fund and are appropriated to the commissioner to 
pay all direct and indirect air service operating costs, 
excluding including salaries.  Receipts to cover the cost of 
acquisition of aircraft must be transferred and credited to the 
hangar construction revolving account. 
    Sec. 91.  Minnesota Statutes 1984, section 453.51, is 
amended to read: 
    453.51 [INTENT.] 
    Sections 453.51 to 453.62 are intended to provide a means 
for those Minnesota cities which now or hereafter own and 
operate a utility pursuant to law for the local distribution of 
electric energy to secure, by individual or joint action among 
themselves or by contract with other public or private entities 
within or outside the state, an adequate, economical, and 
reliable supply of energy.  It is also the purpose of sections 
453.51 to 453.62 to provide a means for Minnesota cities to 
construct and operate hydroelectric generating plants.  To 
accomplish this purpose these purposes it is necessary for such 
cities to have power, by agreement between or among two or more 
of their number, to create a separate municipal corporation with 
the power and authority to finance and acquire facilities for 
the generation or transmission of electric energy, or interests 
in such facilities or rights to part of all of the capacity 
thereof.  It is determined that an adequate, economical, and 
reliable supply of electric energy is essential to the orderly 
growth and prosperity of these communities, and a shortage of 
such energy is inimical to the safety, health, morale, and 
welfare of residents of the state and to the sound growth and 
developments of its communities.  Such a shortage exists and is 
expected to continue or increase because of the difficulty, 
among others, in the operation of municipal generating plants, 
of achieving economies of size, limiting environmental impacts, 
and providing for peak loads.  Accordingly it is determined that 
the exercise of the powers granted herein will benefit the 
people of the state and serve a valid public purpose in 
improving and otherwise promoting their health, welfare, and 
prosperity. 
    Sec. 92.  Minnesota Statutes 1984, section 453.54, 
subdivision 15, is amended to read: 
    Subd. 15.  It may contract with any person, within or 
outside the state, for the construction of any project or for 
the sale, with or without advertising for bids, or transmission 
of electric energy generated by any project, or for any interest 
therein or any right to capacity thereof, on such terms and for 
such period of time as its board of directors determines. 
    Sec. 93.  Minnesota Statutes 1984, section 453.58, is 
amended by adding a subdivision to read: 
    Subd. 4.  [NO TAXATION OF PROPERTY; INTENT.] (a) 
Notwithstanding anything in sections 453.51 to 453.62 to the 
contrary, a city, by the exercise of any or all of the powers 
granted in sections 453.51 to 453.62, is not subject to any duty 
under section 453.54, subdivision 20, to pay amounts in lieu of 
taxes on any of its property.  The sale or distribution of 
electric energy to private persons shall not cause a project to 
be treated as not used exclusively for a public purpose. 
    (b) This subdivision is adopted to clarify the powers 
intended to be granted to cities under section 453.58, and the 
consequences thereof, is remedial in character, and applies to 
all property heretofore or hereafter acquired through the 
exercise of any of the powers of sections 453.51 to 453.62. 
    Sec. 94.  Minnesota Statutes 1984, section 473.373, 
subdivision 4, is amended to read:  
    Subd. 4.  [TERMS.] The initial terms of members and the 
chair appointed under Laws 1984, chapter 654, article 3, section 
116, commence on the first day after July 1, 1984, that the 
chair and at least seven other members have been appointed and 
qualified and expire on the first day that the chair and eight 
members appointed under section 473.141 and this section are 
appointed and qualified.  By August 1, 1985, the appointing 
authorities shall appoint a chair and eight members from the 
districts defined in section 473.141.  The initial terms of 
members and the chair appointed in 1985 are as follows: members 
representing commission districts, B, E, F, J, K, L, and N, A, 
B, C, and D and the chair of the board, for terms ending the 
first Monday in January of the year ending in the numeral "7"; 
members representing commission districts A, C, D, G, H, I, and 
M, E, F, G, and H for terms ending the first Monday in January 
of the year ending in the numeral "9."  Thereafter the term of 
each member and the chair is four years, subject to the 
provisions on apportionment, successor qualification, removal, 
and vacancy of section 473.141, subdivisions 4a, 5, and 6.  
    Sec. 95.  Minnesota Statutes 1984, section 473.373, 
subdivision 6, is amended to read:  
    Subd. 6.  [EXECUTIVE DIRECTOR.] The chief administering 
officer of the board shall hold the position of executive 
director.  The executive director shall be appointed as provided 
in section 473.141 and have the duties and authority prescribed 
for a chief administrator in section 473.141, except as provided 
in subdivision 7. 
    Sec. 96.  Minnesota Statutes 1984, section 473.375, 
subdivision 4, is amended to read: 
    Subd. 4.  [PROPERTY.] The board may acquire by purchase, 
lease, gift, or grant property and interests in property 
necessary for the accomplishment of its purposes and may sell or 
otherwise dispose of property which it no longer requires.  The 
board may not rent or lease any premises from a recipient of 
financial assistance from the board.  Except for the rental or 
lease of its office space, the board may not acquire or hold any 
permanent or temporary right, title, or interest in or to real 
property, including easements or development rights. 
    Sec. 97.  Minnesota Statutes 1984, section 473.375, is 
amended by adding a subdivision to read:  
    Subd. 17.  [AUDIT.] The board must be audited at least once 
each year.  The board may elect to be audited by a certified 
public accountant or by the state auditor.  If the board chooses 
the state auditor, the state auditor shall audit, either 
directly or by subcontract, the board's financial accounts and 
affairs at least once each year.  The information in the audit 
must be contained in the annual report and distributed in 
accordance with section 473.445, subdivision 3.  The board shall 
pay the total cost of the audit, including the salaries paid to 
the examiners while actually engaged in making the examination.  
The state auditor may bill monthly or at the completion of the 
audit.  All collections received for the state audits must be 
deposited in the revolving fund of the state auditor. 
    Sec. 98.  Minnesota Statutes 1984, section 473.38, 
subdivision 2, is amended to read: 
    Subd. 2.  [FINANCIAL PLAN; COUNCIL APPROVAL.] Along with 
its annual budget, each year the board shall prepare a financial 
plan for the succeeding three calendar years, in half-year 
segments.  The financial plan must be consistent with the 
board's implementation plan and must contain the elements 
specified in section 473.377, subdivision 2, clauses (a), (e), 
(f), and (g).  The financial plan prepared in even-numbered 
years must contain a proposed request for state financial 
assistance for the succeeding biennium.  The board shall submit 
the financial plan to the council for review and approval or 
disapproval.  The council may approve or disapprove in whole or 
in part.  The council may disapprove only for inconsistency with 
the policy plan of the council. 
    Sec. 99.  Minnesota Statutes 1984, section 473.384, 
subdivision 7, is amended to read: 
    Subd. 7.  [MTC IMPACT ASSESSMENT.] Prior to entering into a 
contract for operating assistance with a recipient other than 
the transit commission the board shall evaluate the effect, if 
any, of the contract on the ridership, routes, schedules, fares, 
and staffing levels of the existing and proposed service 
provided by the commission.  A copy of the assessment must be 
provided to the commission.  The board may enter into the 
contract only if it determines that the service to be assisted 
under the contract will not impose an undue hardship on the 
ridership or financial condition of the commission, or cause the 
dismissal of persons that are employed by the commission, or 
reduce the total level of service in the metropolitan area 
provided by the commission. 
    Sec. 100.  Minnesota Statutes 1984, section 473.386, 
subdivision 2, is amended to read: 
    Subd. 2.  [FINANCING; IMPLEMENTATION; MANAGEMENT AND 
ADVISORY GROUPS.] The board shall contract for services 
necessary for the project's operation.  All transportation 
service provided through the project must be provided under a 
contract between the board and the provider which specifies the 
service to be provided and the rates for providing it.  The 
board shall establish a committee to set management policies for 
the project.  The management policy committee must include the 
chairman of the board or his designee, representatives of 
persons contracting to provide services for the project, 
representatives of users of the service, and representatives of 
appropriate agencies.  The meetings of the management policy 
committee are public and minutes of all meetings must be taken, 
preserved, and made available for public inspection.  The board 
shall establish an advisory task force committee of individuals 
representing the elderly, handicapped, and other users of 
service provided by the project, representatives of persons 
contracting to provide services for the project, and 
representatives of appropriate agencies to advise the board on 
management policy committee policies for the project.  
    Sec. 101.  [473.387] [SPECIAL TRANSPORTATION MARKETS.] 
    Subdivision 1.  [PURPOSES.] The legislature finds and 
declares that the limited public resources available to 
subsidize transit require increased efforts to concentrate 
service and funding on special sectors of the marketplace, so as 
to ensure a basic level of mobility for all persons in the 
metropolitan area.  The purposes of the programs established by 
this section are to better target transit services and 
expenditures on transit dependent sectors of the market and to 
increase the efficiency and effectiveness and control the cost 
of transit services for persons who lack private means of 
transportation. 
    Subd. 2.  [ADMINISTRATION.] The regional transit board 
shall design and administer the programs under this section.  
The board may request proposals for projects to demonstrate 
methods of achieving the purposes of programs administered under 
this section.  The board shall design or ensure the design of 
programs that will provide better access for the targeted 
service groups to places of employment and activity throughout 
the metropolitan area, using regular route transit, paratransit, 
taxis, car or van pools, or other means of conveyance.  The 
board may organize the services by providing to individuals, 
directly or indirectly, reduced fares or passes on public 
transit or vouchers to be used to purchase transportation; by 
contracting with public and private providers; by arrangements 
with government agencies, civic and community organizations or 
nonprofit groups providing assistance to the targeted service 
groups; by arrangements with prospective employers, with 
employment, education, retail, medical, or other activity 
centers, or with local governments; or by any other methods 
designed to improve service and reduce costs to the targeted 
service groups. 
    Subd. 3.  [JOBSEEKERS.] The board shall establish a program 
and policies to increase the availability and utility of public 
transit services and reduce transportation costs for persons who 
are seeking employment and who lack private means of 
transportation. 
    Subd. 4.  [TRANSIT DISADVANTAGED.] The board shall 
establish a program and policies to reduce transportation costs 
for persons who are, because of limited incomes, age, 
disability, or other reasons, especially dependent on public 
transit for common mobility. 
    Sec. 102.  Minnesota Statutes 1984, section 473.39, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL AUTHORITY.] The transit board 
council, if authorized requested by vote of at least two-thirds 
of all its of the members of the transit board, may borrow money 
on terms, and in the manner it deems proper issue general 
obligation bonds to provide funds to the board for expenditure 
to implement the board's approved capital development program 
and for the refunding of outstanding bonds, certificates of 
indebtedness, and judgments.  The council may not unreasonably 
withhold the issuance of obligations for a capital development 
program that has been approved by the council.  The board 
council may not issue obligations pursuant to this subdivision 
in excess of the amount specifically authorized by law.  A loan 
made under this section and interest thereon shall be payable 
from collections of any funds of the board not otherwise 
appropriated by law and not otherwise pledged by resolution of 
the board.  The loans may be evidenced by certificates of 
indebtedness, bonds, or other obligations, to which the board 
may pledge money received upon collection of the tax authorized 
by section 473.446 or received as proceeds of bonds issued under 
this section or any other revenue of the board.  The loans may 
also be secured by a security interest in property acquired in 
whole or in part from their proceeds.  The obligations are not a 
charge, lien, or encumbrance upon and may not be enforced 
against any property of the board except tax collections and 
bond proceeds specifically pledged by the board and security 
interests granted by it.  In the enforcement or collection of 
the obligations, exercise of the taxing power of the board may 
not be required unless the board has specifically pledged tax 
levies or tax collections authorized by section 473.446 to the 
payment of the obligations.  Except as otherwise provided in 
sections 473.371 to 473.449, the council shall provide for the 
issuance, sale, and security of the bonds in the manner provided 
in chapter 475, and has the same powers and duties as a 
municipality issuing bonds under that law, except that no 
election is required and the net debt limitations in chapter 475 
do not apply to the bonds.  The obligations are not a debt of 
the state or any municipality or political subdivision within 
the meaning of any debt limitation or requirement pertaining to 
those entities.  Neither the state, nor any municipality or 
political subdivision except the council and board, nor any 
member or officer or employee of it the board or council, is 
liable on the obligations.  The obligations may be secured by 
taxes levied without limitation of rate or amount upon all 
taxable property in the transit taxing district and transit area 
as provided in section 473.446.  The council shall certify to 
the transit board before October 1 of each year the amounts 
necessary to provide full and timely payment of the 
obligations.  As part of its levy made under section 473.446, 
the board shall levy the amounts certified by the council and 
transfer the proceeds to the council for payment of the 
obligations.  The taxes must be levied, certified, and collected 
in accordance with the terms and conditions of the indebtedness. 
    Sec. 103.  Minnesota Statutes 1984, section 473.39, is 
amended by adding a subdivision to read:  
    Subd. 1a.  [AMOUNT; I-394 FACILITIES.] The council may 
issue certificates of indebtedness, bonds, or other obligations 
under this section in an amount not exceeding $8,500,000 for 
expenditure as prescribed in the capital development program of 
the board required by section 473.377, subdivision 2, clause (a).
Of this amount, no more than $1,500,000 may be spent for land 
acquisition and capital improvements for park and ride lots and 
transit transfer stations planned for the interstate highway 
described in section 161.123, clause (2), commonly known as 
I-394.  These facilities may be constructed and maintained by 
the metropolitan transit commission.  The board shall require, 
as a condition of financial assistance to the commission, that 
the commission make facilities it constructs, acquires, or 
improves for I-394 with funds provided under this provision 
available to all transit providers on a nondiscriminatory basis, 
as the board defines these terms. 
    Sec. 104.  Minnesota Statutes 1984, section 473.39, 
subdivision 2, is amended to read:  
    Subd. 2.  [LEGAL INVESTMENTS.] Certificates of 
indebtedness, bonds, or other obligations issued by the board 
council to which tax levies have been pledged pursuant to 
section 473.446, are proper for investment of any funds by a 
bank, savings bank, savings and loan association, credit union, 
trust company, insurance company, or public or municipal 
corporation, and may be pledged by any bank, savings bank, 
savings and loan association, credit union, or trust company as 
security for the deposit of public money.  
    Sec. 105.  [473.398] [TRANSIT NEEDS ASSESSMENT.] 
    The metropolitan council, the regional transit board, the 
metropolitan transit commission, and any regional rail authority 
or political subdivision in the metropolitan area may not either 
separately or in combination expend or obligate any money from 
public sources for study, planning, design, preliminary 
engineering, engineering, acquisition, construction, or any 
other purpose related to facilities for transporting passengers 
by cars operating on fixed rails, without express legislative 
authorization. 
    Before performing any further detailed work on light rail 
transit, the regional transit board shall complete the total 
assessment of transit service needs and markets for the 
metropolitan area and the implementation plan required by 
section 473.377, subdivisions 1 and 2.  It may consider any mode 
of travel to serve identified needs and markets. 
    Following approval of the implementation plan by the 
metropolitan council, as required by section 473.377, 
subdivision 1, the regional transit board may commence corridor 
planning, consisting of preliminary engineering for general 
route configuration and alignments, station locations, modal 
interconnectors, and access of any modes including light rail 
transit, for the corridor between the downtowns of Minneapolis 
and St. Paul if the needs assessment and implementation plan so 
provide.  It may utilize private or public funds to do this work.
    The board shall report to the legislature by December 1, 
1986, on the needs, alternative transit systems, and services 
considered and recommendations for implementation, costs, 
alternative sources of financing, and preferred financing 
sources. 
    Sec. 106.  Minnesota Statutes 1984, section 473.404, 
subdivision 7, is amended to read: 
    Subd. 7.  [COMPENSATION.] Each member, including the chair, 
must be compensated as provided for commission members in 
section 473.141, subdivision 7.  
    Sec. 107.  Minnesota Statutes 1984, section 473.405, 
subdivision 12, is amended to read: 
    Subd. 12.  [MANAGEMENT CONTRACTS.] Notwithstanding any of 
the other provisions of sections 473.401 to 473.451, the 
commission may, in lieu of directly operating any public transit 
system or any part thereof, enter into contracts for management 
services.  The contracts may provide for compensation, incentive 
fees, the employment of personnel, the services provided, and 
other terms and conditions that the commission deems proper.  
    The commission may not permit a contract manager to 
supervise or manage internal audit activities.  Internal audit 
activity must be supervised and managed directly by the 
commission.  The commission shall advertise for bids and select 
contracts for management services through competitive bidding.  
The term of the contract may not be longer than two years.  The 
contract must include clear operating objectives, stating the 
service policies and goals of the commission in terms of the 
movement of various passenger groups, and performance criteria, 
by means of which success in achieving the operating objectives 
can be measured.  Employees of a contract manager may serve only 
in the operations division.  The commission shall consider and 
determine the feasibility and desirability of having all its 
transit management services provided internally by employees of 
the commission.  
    The employees of any public transit system operated 
pursuant to the provisions of this subdivision for the purpose 
of resolving any dispute arising under any existing or new 
collective bargaining agreement relating to the terms or 
conditions of their employment, may either engage in a concerted 
refusal to work or to invoke the processes of final and binding 
arbitration as provided by chapter 572, subject to any 
applicable provisions of the agreement not inconsistent with law.
    Sec. 108.  Minnesota Statutes 1984, section 473.408, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [REGULAR ROUTE FARES.] The board shall establish 
and enforce uniform fare policies for regular route transit in 
the metropolitan area.  The policies must be stated in the 
board's three-year transit service implementation and financing 
plan.  The policies must be consistent with the requirements of 
this section and the council's transportation policy plan.  The 
commission and other operators shall charge a base fare and any 
surcharges for peak hours and distance of service in accordance 
with the policies prescribed in the approved implementation plan 
of the transit board.  The commission and other operators shall 
submit their fare schedules to the board for approval. 
    Sec. 109.  Minnesota Statutes 1984, section 473.408, 
subdivision 4, is amended to read: 
    Subd. 4.  [DOWNTOWN CIRCULATION FARES.] The commission and 
other operators may charge not less than ten cents a reduced 
fare for service on any route providing circulation service in a 
downtown area or community activity center.  The commission and 
other operators shall not contribute more than 50 percent of the 
operating deficit of any such route that is confined to a 
downtown area or community activity center.  The boundaries of 
service districts eligible for reduced fares under this 
subdivision must be approved by the board. 
    Sec. 110.  Minnesota Statutes 1984, section 473.435, 
subdivision 2, is amended to read: 
    Subd. 2.  [AUDIT.] The commission must be audited at least 
once each year.  The commission may elect to be audited by a 
certified public accountant or by the state auditor.  If the 
commission chooses the state auditor, the transit commission 
shall employ a certified public accountant or firm to state 
auditor shall make an annual audit, either directly or by 
subcontract, of the commission's financial accounts and 
affairs for the last fiscal year on or before November 30 of 
each year, and at least once each year.  Copies of the auditor's 
report thereof shall be filed and kept open to public inspection 
in the offices of the secretary of the commission, the board, 
and the secretary of state.  The information in the audit shall 
be contained in the annual report and distributed in accordance 
with section 473.445.  The commission shall pay the total cost 
of the audit, including the salaries paid to the examiners while 
actually engaged in making the examination.  The state auditor 
may bill monthly or at the completion of the audit.  All 
collections received for the state audits must be deposited in 
the revolving fund of the state auditor. 
    Sec. 111.  Minnesota Statutes 1984, section 473.436, 
subdivision 6, is amended to read: 
    Subd. 6.  [TEMPORARY BORROWING.] On or after the first day 
of any fiscal year, the commission may borrow money which may be 
used or expended by the commission for any purpose, including 
but not limited to current expenses, capital expenditures and 
the discharge of any obligation or indebtedness of the 
commission.  The indebtedness must be represented by a note or 
notes which may be issued from time to time in any denomination 
and sold at public or private sale pursuant to a resolution 
authorizing the issuance.  The resolution must set forth the 
form and manner of execution of the notes and shall contain 
other terms and conditions the commission deems necessary or 
desirable to provide security for the holders of the notes.  The 
note or notes are payable from committed or appropriated money 
from taxes, grants or loans of the state or federal government 
made to the commission, or other revenues of the commission, and 
the money may be pledged to the payment of the notes.  The 
commission is authorized to pledge to the payment of the note or 
notes taxes levied by the regional transit board under section 
473.446, subdivision 1, clause (a), and if taxes are so pledged 
the board shall transfer amounts received from the levy to the 
commission for payment of the note or notes.  To the extent the 
notes are not paid from the grant or loan money pledged for the 
payment thereof, the principal and interest of the notes must be 
paid from any taxes, received by the transit board and any 
income and revenue received by or accrued to the commission 
during the fiscal year in which the note or notes were issued, 
or other money of the commission lawfully available therefor. 
    Sec. 112.  Minnesota Statutes 1984, section 473.446, 
subdivision 1, is amended to read: 
    473.446 [TRANSIT TAX LEVIES.] 
    Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
For the purposes of sections 473.401 to 473.451 and the 
metropolitan transit system, except as otherwise provided in 
this subdivision the regional transit board shall levy each year 
upon all taxable property within the metropolitan transit taxing 
district, defined in subdivision 2, a transit tax consisting of: 
    (a) An amount up to two mills times the assessed value of 
all such property, based upon the level of transit service 
provided for the property, the proceeds of which shall be used 
for payment of the expenses of operating transit and paratransit 
service and to provide for payment of obligations issued by the 
commission under section 473.436, subdivision 6; 
    (b) An additional amount, if any, as the commission 
determines to be necessary to provide for the full and timely 
payment of its certificates of indebtedness and other 
obligations outstanding on July 1, 1977 1985, to which property 
taxes under this section have been pledged; and 
    (c) An additional amount necessary to provide full and 
timely payment of certificates of indebtedness, bonds, or other 
obligations issued or to be issued pursuant to under section 
473.436 473.39 by the council for purposes of acquisition and 
betterment of property and other improvements of a capital 
nature and to which the commission council or board has 
specifically pledged tax levies under this clause. 
    The county auditor shall reduce the tax levied pursuant to 
this subdivision on all property within statutory and home rule 
charter cities or and towns that receive full peak service and 
limited off-peak service by an amount equal to the tax levy that 
would be produced by applying a rate of 0.5 mills on the 
property.  The county auditor shall reduce the tax levied 
pursuant to this subdivision on all property within statutory 
and home rule charter cities or and towns that receive limited 
peak service by an amount equal to the tax levy that would be 
produced by applying a rate of 0.75 mills on the property.  The 
amounts so computed by the county auditor shall be submitted to 
the commissioner of revenue as part of the abstracts of tax 
lists required to be filed with the commissioner under section 
275.29.  Any prior year adjustments shall also be certified in 
the abstracts of tax lists.  The commissioner shall review the 
certifications to determine their accuracy.  He may make changes 
in the certification as he may deem necessary or return a 
certification to the county auditor for corrections.  The 
commissioner shall pay to the regional transit board the amounts 
certified by the county auditors on the dates provided in 
section 273.13, subdivision 15a, clause (3).  There is annually 
appropriated from the general fund in the state treasury to the 
department of revenue the amounts necessary to make these 
payments in fiscal year 1987 and thereafter.  
    For the purposes of this subdivision, "full peak and 
limited off-peak service" means peak period regular route 
service, plus weekday midday regular route service with a 
frequency of more at intervals longer than 60 minutes on the 
route with the greatest frequency; and "limited peak period 
service" means peak period regular route service only.  
    Sec. 113.  Minnesota Statutes 1984, section 473.446, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [TAXATION WITHIN TRANSIT AREA.] For the purposes 
of sections 473.401 to 473.451, and the metropolitan transit 
system, the metropolitan transit commission regional transit 
board shall levy upon all taxable property within the 
metropolitan transit area but outside of the metropolitan 
transit taxing district, defined in subdivision 2, a transit 
tax, which shall be equal to ten percent of the sum of the 
levies provided in subdivision 1, clauses (a) to (c).  The 
proceeds of this tax shall be used only for paratransit services 
or ride sharing programs designed to serve persons located 
within the transit area but outside of the transit taxing 
district.  
    Sec. 114.  Minnesota Statutes 1984, section 473.446, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [PROTECTION OF RIGHTS OF HOLDERS OF OUTSTANDING 
INDEBTEDNESS.] The provisions of subdivisions 1 and 2 or any 
other law changing the boundaries of the metropolitan transit 
taxing district or reducing the levy otherwise required to be 
levied within the district shall not be deemed to impair the 
rights of holders of outstanding indebtedness of the commission 
to require the certification to the transit board levy of 
property taxes, if necessary to provide for any deficiency in 
accordance with the conditions of such indebtedness, on all 
property within the limits of the metropolitan transit taxing 
district as such limits were in effect at the date of issuance 
of such indebtedness. 
    Sec. 115.  Minnesota Statutes 1984, section 473.446, 
subdivision 3, is amended to read: 
    Subd. 3.  [CERTIFICATION AND COLLECTION.] On or before 
October 10 in each year the commission regional transit board 
shall certify the total amount of the tax levied pursuant to 
subdivision 1 to the auditor of each metropolitan county.  Each 
county auditor shall then assess and extend upon the tax rolls 
in his county that proportion of the tax which the assessed 
value of taxable property in his county bears to the assessed 
value of all taxable property in the metropolitan area.  Each 
county treasurer shall collect and make settlement of such taxes 
with the treasurer of the commission board.  The levy of transit 
taxes pursuant to this section shall not affect the amount or 
rate of taxes which may be levied by any county or municipality 
or by the commission board for other purposes authorized by law 
and shall be in addition to any other property tax authorized by 
law. 
    Sec. 116.  Minnesota Statutes 1984, section 500.24, 
subdivision 3, is amended to read: 
    Subd. 3.  [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY 
CORPORATIONS RESTRICTED.] No corporation or pension or 
investment fund shall engage in farming; nor shall any 
corporation or pension or investment fund, directly or 
indirectly, own, acquire, or otherwise obtain an interest, 
whether legal, beneficial or otherwise, in any title to real 
estate used for farming or capable of being used for farming in 
this state.  Provided, however, that the restrictions provided 
in this subdivision shall not apply to the following: 
    (a) A bona fide encumbrance taken for purposes of security; 
     (b) A family farm corporation or an authorized farm 
corporation as defined in subdivision 2; 
     (c) Agricultural land and land capable of being used for 
farming owned by a corporation as of May 20, 1973 or a pension 
or investment fund as of May 12, 1981 including the normal 
expansion of such ownership at a rate not to exceed 20 percent 
of the amount of land owned as of May 20, 1973, or, in the case 
of a pension or investment fund, as of May 12, 1981, measured in 
acres, in any five year period, and including additional 
ownership reasonably necessary to meet the requirements of 
pollution control regulations; 
     (d) Agricultural land operated for research or experimental 
purposes, provided that any commercial sales from such farm 
shall be incidental to the research or experimental objectives 
of the corporation; 
    (e) Agricultural land operated by a corporation for the 
purpose of raising breeding stock, including embryos, for resale 
to farmers or operated for the purpose of growing seed, wild 
rice, nursery plants or sod; 
    (f) Agricultural land and land capable of being used for 
farming leased by a corporation in an amount, measured in acres, 
not to exceed the acreage under lease to such corporation as of 
May 20, 1973 and the additional acreage required for normal 
expansion at a rate not to exceed 20 percent of the amount of 
land leased as of May 20, 1973 in any five year period, and the 
additional acreage reasonably necessary to meet the requirements 
of pollution control regulations; 
    (g) Agricultural land when acquired as a gift (either by 
grant or a devise) by an educational, religious or charitable 
non-profit corporation or by a pension or investment fund; 
provided that all lands so acquired by a pension or investment 
fund, and all lands so acquired by a corporation which are not 
operated for research or experimental purposes, or are not 
operated for the purpose of raising breeding stock for resale to 
farmers or operated for the purpose of growing seed, wild rice, 
nursery plants or sod must be disposed of within ten years after 
acquiring title thereto; 
    (h) Agricultural land acquired by a pension or investment 
fund or a corporation other than a family farm corporation or 
authorized farm corporation, as defined in subdivision 2, for 
which the corporation has documented plans to use and 
subsequently uses the land within six years from the date of 
purchase for a specific nonfarming purpose, or if the land is 
zoned nonagricultural, or if the land is located within an 
incorporated area.  A pension or investment fund or a 
corporation may hold such agricultural land in such acreage as 
may be necessary to its nonfarm business operation; provided, 
however, that pending the development of agricultural land for 
nonfarm purposes, such land may not be used for farming except 
under lease to a family farm unit, a family farm corporation or 
an authorized farm corporation, or except when controlled 
through ownership, options, leaseholds, or other agreements by a 
corporation which has entered into an agreement with the United 
States of America pursuant to the New Community Act of 1968 
(Title IV of the Housing and Urban Development Act of 1968, 42 
U.S.C. 3901-3914) as amended, or a subsidiary or assign of such 
a corporation; 
     (i) Agricultural lands acquired by a pension or investment 
fund or a corporation by process of law in the collection of 
debts, or by any procedure for the enforcement of a lien or 
claim thereon, whether created by mortgage or otherwise; 
provided, however, that all lands so acquired be disposed of 
within ten years after acquiring the title thereto, and further 
provided that the land so acquired shall not be used for farming 
during the ten year period except under a lease to a family farm 
unit, a family farm corporation or an authorized farm 
corporation.  The aforementioned ten year limitation period 
shall be deemed a covenant running with the title to the land 
against any pension or investment fund or corporate grantee or 
assignee or the successor of such pension or investment fund or 
corporation; 
     (j) Agricultural land acquired by a corporation regulated 
under the provisions of Minnesota Statutes 1974, Chapter 216B, 
for purposes described in that chapter or by an electric 
generation or transmission cooperative for use in its business, 
provided, however, that such land may not be used for farming 
except under lease to a family farm unit, or a family farm 
corporation; 
     (k) Agricultural land, either leased or owned, totaling no 
more than 2700 acres, acquired after May 20, 1973 for the 
purpose of replacing or expanding asparagus growing operations, 
provided that such corporation had established 2000 acres of 
asparagus production; 
     (l) All agricultural land or land capable of being used for 
farming which was owned or leased by an authorized farm 
corporation as defined in Minnesota Statutes 1974, Section 
500.24, Subdivision 1, Clause (d) but which does not qualify as 
an authorized farm corporation as defined in subdivision 2, 
clause (d); 
     (m) A corporation formed primarily for religious purposes 
whose sole income is derived from agriculture; 
     (n) Agricultural land owned or leased by a corporation 
prior to August 1, 1975, which was exempted from the restriction 
of subdivision 3 under the provisions of Laws 1973, Chapter 427, 
including normal expansion of such ownership or leasehold 
interest to be exercised at a rate not to exceed 20 percent of 
the amount of land owned or leased on August 1, 1975 in any five 
year period and the additional ownership reasonably necessary to 
meet requirements of pollution control regulations. 
     (o) Agricultural land owned or leased by a corporation 
prior to August 1, 1978, including normal expansion of such 
ownership or leasehold interest, to be exercised at a rate not 
to exceed 20 percent of the amount of land owned or leased on 
August 1, 1978 and the additional ownership reasonably necessary 
to meet requirements of pollution control regulations, provided 
that nothing herein shall reduce any exemption contained under 
the provisions of Laws 1975, Chapter 324, Section 1, Subdivision 
2.  
     (p) An interest in the title to agricultural land acquired 
by a pension fund or family trust established by the owners of a 
family farm, authorized farm corporation or family farm 
corporation, but limited to the farm on which one or more of 
those owners or shareholders have resided or have been actively 
engaged in farming as required by subdivision 2, clause (b), 
(c), or (d).  
    Sec. 117.  Minnesota Statutes 1984, section 626.861, is 
amended by adding a subdivision to read: 
    Subd. 4.  [PEACE OFFICERS TRAINING ACCOUNT.] Receipts from 
penalty assessments must be credited to a peace officers 
training account in the special revenue fund.  Money credited to 
the peace officers training account may be appropriated for but 
not limited to the following purposes: 
    (a) Up to ten percent may be provided for reimbursement to 
board approved skills courses in proportion to the number of 
students successfully completing the board's skills licensing 
examination. 
    (b) The balance may be used to pay each local unit of 
government an amount in proportion to the number of licensed 
peace officers and constables employed, at a rate to be 
determined by the board.  The disbursed amount must be used 
exclusively for reimbursement of the cost of in-service training 
required under chapters 214 and 626. 
    Sec. 118.  Minnesota Statutes 1984, section 626.88, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCEPTION.] Security guards employed by the 
capitol complex security division of the department of public 
safety are not required to comply with subdivision 2 until July 
1, 1985, at which time they shall be subject to the same uniform 
color restrictions as other security guards. 
    Sec. 119.  Laws 1985, chapter 168, section 14, is amended 
to read:  
    Sec. 14.  [EFFECTIVE DATE.] 
    Sections 1 to 4, 8, 11, and 12 are effective July October 
1, 1985, and apply to all insurance policies providing benefits 
for injuries arising out of the maintenance or use of a motor 
vehicle or motorcycle that are executed, issued, issued for 
delivery, delivered, continued, or renewed in this state 
after June 30 September 30, 1985.  Sections 5 and 9 are 
effective the day following final enactment. 
    Sections 6, 7, 10, and 13 are effective October 1, 1985. 
    Sec. 120.  Laws 1985, chapter 290, section 14, is amended 
to read: 
    Sec. 14.  [EFFECTIVE DATES.] 
    Sections 1 to 3; section 4, subdivisions 1 and 2; and 
sections 5 to 13 are effective July 1, 1985.  Section 4, 
subdivision 3, is effective July 1, 1986 Sections 2 to 12 are 
effective 12 months after completion of the study required by 
section 13. 
    Sec. 121.  Laws 1985, chapter 309, section 14, is amended 
to read:  
    Sec. 14.  [EFFECTIVE DATE.] 
    Sections 1 to 4 and 6 are effective July October 1, 1985, 
and apply to all insurance policies providing benefits for 
injuries arising out of the maintenance or use of a motor 
vehicle or motorcycle that are executed, issued, issued for 
delivery, delivered, continued, or renewed in this state 
after June 30 September 30, 1985. 
    Sections 7 and 9 are effective the day following final 
enactment.  Section 12 is effective July 1, 1985, and applies to 
causes of action arising on or after that date. 
    Sec. 122.  [FARE RESTRICTIONS SUSPENDED.] 
    The provisions respecting fares of the metropolitan transit 
commission in Laws 1981, chapter 363, section 55, subdivision 1; 
Laws 1981, third special session, chapter 2, article 1, section 
2, subdivision 2; and Laws 1983, chapter 293, section 2, 
subdivision 5, are suspended until July 1, 1987. 
    Sec. 123.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1984, sections 60A.15, 
subdivision 14; 62A.025; 473.373, subdivision 7; 473.39, 
subdivision 3; 473.408, subdivisions 3, 3a, 3b, and 5; 473.436, 
subdivisions 1, 4, and 5; 473.438; and 473.446, subdivision 6, 
are repealed. 
    Subd. 2.  Laws 1985, chapter 241, section 2, is repealed.  
    Subd. 3.  Minnesota Statutes 1984, section 17.717, 
subdivision 6, is repealed.  
    Subd. 4.  Minnesota Statutes 1984, section 473.373, 
subdivision 2, is repealed.  
    Subd. 5.  Minnesota Statutes 1984, section 65B.49, 
subdivision 4, as amended by Laws 1985, chapter 168, section 11, 
and chapter 309, section 5, is repealed.  
    Any amendment to Minnesota Statutes, section 65B.49, 
subdivision 4, enacted at the same special session that enacts 
this subdivision, is void.  
    Sec. 124.  [APPLICATION.] 
    Sections 94 to 115 apply in the counties of Anoka, Carver, 
Dakota, Hennepin, Ramsey, Scott, and Washington. 
    Sec. 125.  [EFFECTIVE DATE.] 
    Sections 31; 32; 45; 83; 84; 85; 105; 116; 120; and 123, 
subdivisions 2 and 5, are effective the day following final 
enactment.  Sections 43; 46; 117; and 123, subdivision 3, are 
effective July 1, 1987.  Section 33 is effective the day after 
compliance with Minnesota Statutes, section 645.021, subdivision 
3, for the city of Hastings by the governing body of the city of 
Hastings, and for the city of St. Cloud by the governing body of 
the city of St. Cloud.  Section 86 is effective for sales made 
after June 30, 1985.  Section 123, subdivision 4, is effective 
August 1, 1985. 
    Section 68 is effective October 1, 1985, and applies to all 
insurance policies providing benefits for injuries arising out 
of the maintenance or use of a motor vehicle or motorcycle that 
are executed, issued, issued for delivery, delivered, continued, 
or renewed in this state after September 30, 1985. 
    Approved June 27, 1985