Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 436-S.F.No. 1850 
           An act relating to state government; expanding when 
          fiscal notes must be prepared; regulating fees for 
          state agency services; providing conditions for 
          certain hydropower developments; amending Minnesota 
          Statutes 1984, section 105.482, subdivisions 8 and 9; 
          and Minnesota Statutes 1985 Supplement, sections 
          3.981, subdivision 2; 16A.128; and 16A.1281. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1985 Supplement, section 
3.981, subdivision 2, is amended to read: 
    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; or 
    (k) a statute enacted or an executive order issued after 
the effective date of this section which requires payment of a 
new fee or increases the amount of an existing fee. 
     Sec. 2.  Minnesota Statutes 1985 Supplement, section 
16A.128, is amended to read: 
    16A.128 [FEE SETTING.] 
    Subdivision 1.  [POLICY.] Agency fees and fee adjustments 
shall not exceed amounts established by statute.  Where amounts 
are not established by statute, fees shall be established or 
adjusted as provided in this section. 
     The legislature, in setting or adjusting fees, or taking 
actions affecting the setting or adjusting of fees, should 
attempt to ensure that (1) agency fees and fee adjustments 
include only those service-related costs that provide a primary 
benefit to the individual fee payer and (2) service-related 
costs that benefit the general community are borne by the agency.
    Subd. 1a.  [APPROVAL.] Fees for accounts for which 
appropriations are made may not be established or adjusted 
without the approval of the commissioner.  If the fee or fee 
adjustment is required by law to be fixed by rule, the 
commissioner's approval must be in the statement of need and 
reasonableness.  These fees must be reviewed each fiscal year.  
Unless the commissioner determines that the fee must be lower, 
fees must be set or fee adjustments must be made so the total 
fees nearly equal the sum of the appropriation for the accounts 
plus the agency's general support costs, statewide indirect 
costs, and attorney general costs attributable to the fee 
function. 
    Subd. 2.  [NO RULEMAKING.] The kinds of fees that need not 
be fixed by rule unless specifically required by law are:  
    (1) fees based on actual direct costs of a service;  
    (2) one-time fees;  
    (3) fees that produce insignificant revenues;  
    (4) fees billed within or between state agencies;  
    (5) fees exempt from commissioner approval; or 
    (6) fees for admissions to or use of facilities operated by 
the iron range resources and rehabilitation board, if the fees 
are set according to prevailing market conditions to recover 
operating costs. 
    Subd. 2a.  [PROCEDURE.] Other fees not fixed by law must be 
fixed by rule.  The procedure for noncontroversial rules in 
sections 14.21 to 14.28 may be used except that no public 
hearing need be held unless 20 percent of the persons who will 
be required to pay the fee submit to the agency during the 
30-day period allowed for comment a written request for a public 
hearing on the proposed rule.  The notice of intention to adopt 
the rules must state whether a hearing will be held if not 
required.  This procedure may be used only when the total fees 
estimated for the biennium do not exceed the sum of direct 
appropriations, indirect costs, transfers in, and salary 
supplements for that purpose.  A public hearing is required to 
fix fees spent under open appropriations of dedicated receipts 
according to chapter 14.  Before an agency submits notice to the 
state register of intent to adopt rules that establish or adjust 
fees, the agency must send a copy of the notice and the proposed 
rules to the chairs of the house appropriations committee and 
senate finance committee. 
    Sec. 3.  Minnesota Statutes 1985 Supplement, section 
16A.1281, is amended to read: 
    16A.1281 [REPORT ON LOW OR HIGH FEES.] 
    Each biennium the commissioner shall review fees collected 
by agencies.  The commissioner shall report on the fees to 
the commissioner of revenue and to the appropriation and finance 
committees not later than the date the governor submits the 
biennial budget to the legislature.  The report must analyze the 
fees that the commissioner believes will be too low or too high 
in the next biennium for the service provided.  The analysis 
must take into account the cost of collecting the fee and state 
the revenue generated by the fees of each agency. 
    Sec. 4.  Minnesota Statutes 1984, section 105.482, 
subdivision 8, is amended to read: 
    Subd. 8.  [HYDROPOWER GENERATION POLICY; LEASING OF DAMS 
AND DAM SITES.] Consistent with laws relating to dam 
construction, reconstruction, repair, and maintenance, the 
legislature finds that the public health, safety, and welfare of 
the state is also promoted by the use of state waters to produce 
hydroelectric or hydromechanical power.  Further, the 
legislature finds that the leasing of existing dams and 
potential dam sites primarily for such power generation is a 
valid public purpose.  A local governmental unit, or the 
commissioner of natural resources with the approval of the state 
executive council, may provide pursuant to a lease or 
development agreement for the development and operation of dams, 
dam sites, and hydroelectric or hydromechanical power generation 
plants owned by the respective government by an individual, a 
corporation, an organization, or other legal entity upon such 
terms and conditions as the local governmental unit or the 
commissioner may negotiate for a period not to exceed 99 
years as contained in subdivision 9.  For installations of 
15,000 kilowatts or less at a dam site and reservoir that is not 
being used on January 1, 1984 in connection with the production 
of hydroelectric or hydromechanical power, the lease or 
development agreement negotiated by the local governmental unit 
and the developer shall constitute full payment by the lessee 
and may be in lieu of all real or personal property taxes that 
might otherwise be due to a local governmental unit.  If the 
dam, dam site, or power generation plant is located in or 
contiguous to a city or town, other than the lessor governmental 
unit, the lease or agreement shall not be effective unless it is 
approved by the governing body of the city or town.  For 
purposes of this subdivision, city means a statutory or home 
rule charter city.  
    Sec. 5.  Minnesota Statutes 1984, section 105.482, 
subdivision 9, is amended to read: 
    Subd. 9.  [CONTENTS OF DEVELOPMENT AGREEMENT.] An agreement 
for the development or redevelopment of a hydropower site may 
contain, but need not be limited to, the following provisions:  
    (a) Length of the development agreement, subject to 
negotiations between the parties but not more than 99 years, and 
conditions for extension, modification, or termination;  
    (b) Provisions for a performance bond on the developer, or, 
certification that the equipment and its installation have a 
design life at least as long as the lease;  
    (c) Provisions to assure adequate maintenance and safety in 
the impoundment structures, if any, and to assure access to 
recreational sites, if any; 
    An agreement shall contain provisions to assure the maximum 
financial return to the local governmental unit or the 
commissioner of natural resources.  
    Sec. 6.  [EFFECTIVE DATE.] 
    Section 1 is effective the day following final enactment 
and applies to all fees established or adjusted after that 
date.  Section 2, subdivision 1, and section 3 are effective the 
day following final enactment.  Section 2, subdivisions 1a, 2, 
and 2a are effective July 1, 1987, and apply to all fees 
established or adjusted after that date. 
    Approved March 25, 1986