Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 462-H.F.No. 1875 
           An act relating to public and municipal corporations; 
          creating a public corporation to provide health care 
          services, education, and research; providing for 
          governance of St. Paul Ramsey Medical Center and 
          creation of a physicians and dentists subsidiary; 
          providing for the imposition and use of certain taxes 
          on lodging; providing for the redesign, 
          reconstruction, and widening of Lexington avenue south 
          of Larpenteur avenue; amending Laws 1977, chapter 402, 
          section 2; Laws 1982, chapter 523, article 25, section 
          1; proposing coding for new law as Minnesota Statutes, 
          chapter 246A; repealing Minnesota Statutes 1984, 
          section 383A.41, as amended. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [246A.01] [DEFINITIONS.] 
    Subdivision 1.  [TERMS.] For the purposes of sections 1 to 
27, the terms defined in this section have the meanings given 
them unless the context clearly indicates otherwise. 
    Subd. 2.  [CORPORATION.] "Corporation" means the public 
corporation created by section 2. 
    Subd. 3.  [HOSPITAL SUBSIDIARY CORPORATION.] "Hospital 
subsidiary corporation" means the subsidiary corporation created 
pursuant to section 6, subdivisions 1, clause (9), and 3, and 
charged with the governance and operation of the St. Paul Ramsey 
Medical Center. 
    Sec. 2.  [246A.02] [CREATION OF CORPORATION.] 
    There is created a corporation which shall be public in 
nature.  The corporation shall be known as ...................  
The purpose of the corporation is to engage in the provision and 
delivery of health care and related services, including 
education and research. 
    Sec. 3.  [246A.03] [BOARD OF DIRECTORS.] 
    Subdivision 1.  [GOVERNANCE.] The corporation shall be 
governed by a board of directors consisting of 15 members.  The 
initial members of the board shall be selected as specified in 
subdivision 2.  The terms of office of members of the board 
shall be as provided in the corporation's bylaws.  No term of 
office will exceed three years.  
    Subd. 2.  [SELECTION PANEL.] The chairperson of the Ramsey 
county board of commissioners, the chairperson of the St. Paul 
Ramsey Medical Center commission, and the chairperson of Ramsey 
clinic associates shall each appoint three persons to a 
selection panel.  The selection panel shall name the initial 15 
members of the board of directors established in subdivision 1.  
When the initial members of the board of directors have taken 
office, the selection panel shall dissolve. 
    Subd. 3.  [NOMINATING COMMITTEE.] Whenever a vacancy occurs 
on the board of directors of the corporation, whether through 
resignation, removal, expiration of a director's term of office, 
or otherwise, the board shall appoint a nominating committee 
composed of five members, at least one of whom shall be a member 
of the board of commissioners of Ramsey county.  The nominating 
committee shall meet as soon as practicable for the purpose of 
nominating individuals to fill the vacancy.  The nominating 
committee shall nominate two candidates in the event there is 
one vacancy on the board and 1-1/2 candidates for each vacancy 
should there be more than one vacancy to be filled.  In the 
event an odd number of positions on the board is vacant, the 
nominating committee is authorized to propose the next highest 
whole number of candidates when applying the foregoing formula.  
The board shall elect individuals to fill any vacancy from those 
individuals nominated by the committee, but no director may vote 
if that director's position is to be filled by the election. 
    Subd. 4.  [QUORUM.] Unless otherwise specified in the 
bylaws, eight members of the board of directors constitutes a 
quorum for the transaction of business. 
    Subd. 5.  [BOARD MEETINGS.] Except when the bylaws 
prescribe otherwise:  
    (1) notice of every meeting shall be given; 
    (2) an act of the majority of the directors present at a 
meeting at which a quorum is present is the act of the board, 
except that a vote of a majority of the board shall be required 
to adopt the annual budget or to hire or discharge the chief 
executive officer; 
    (3)(a) A conference among directors, or among members of 
any committee designated by the board of directors, by any means 
of communication through which the participants may 
simultaneously hear each other during the conference, 
constitutes a meeting of the board, or the committee, if the 
same notice is given of the conference as would be required for 
a meeting, and if the number of person participating in the 
conference would be sufficient to constitute a quorum at the 
meeting.  Participation in a meeting in this manner constitutes 
personal presence at the meeting.  Except as authorized by 
section 16, subdivision 2, if a meeting is conducted pursuant to 
this clause, a location and means by which members of the public 
may listen to the meeting shall be provided, and where such a 
meeting includes visual media, means by which members of the 
public may observe the meeting shall be provided.  Notice of the 
meeting shall be provided and it shall specify that location, as 
well as the electronic method to be used. 
    (b) A director may participate in a meeting of the board or 
any committee designated by the board not described in paragraph 
(a) by any means of communication through which the director, 
other persons so participating, and all persons physically 
present at the meeting may simultaneously hear each other during 
the meeting.  Participation in a meeting in this manner 
constitutes personal presence at the meeting. 
    Sec. 4.  [246A.04] [OFFICERS.] 
    Subdivision 1.  [ELECTION, APPOINTMENT.] (a) Unless the 
bylaws provide otherwise, the board of directors shall elect 
persons to exercise the functions of the offices of president, 
secretary, and treasurer and may elect or appoint any other 
officers and agents deemed to be necessary. 
    (b) Unless the bylaws prescribe that only directors may be 
officers, officers need not be directors. 
    (c) Any of the offices or functions of the offices may be 
held or exercised by the same person. 
    Subd. 2.  [QUALIFICATIONS.] The president, secretary, and 
treasurer shall be adult natural persons.  The bylaws may 
prescribe special qualifications for these offices. 
    Subd. 3.  [REMOVAL.] An officer may be removed, with or 
without cause, by the persons authorized to elect or appoint 
officers.  The removal is without prejudice to the officer's 
contract rights. 
    Subd. 4.  [AUTHORITY, DUTIES.] (a) Officers have the 
authority and duties in the management of the business of the 
corporation that the bylaws prescribe or, in the absence of the 
prescription, as the board of directors determines. 
    (b) An officer shall discharge the duties in good faith and 
with the diligence and care which an ordinarily prudent person, 
in a like position and under similar circumstances, would 
exercise. 
    Sec. 5.  [246A.05] [BYLAWS.] 
    Subdivision 1.  [BOARD ADOPTS OR AMENDS.] The board of 
directors may adopt or amend bylaws which may contain any 
provision for the purpose of administering and regulating the 
affairs of the corporation not inconsistent with law.  
    Subd. 2.  [PROCEDURE AND NOTICE.] The procedure for 
amending the bylaws shall be specified in the bylaws.  Notice of 
the meeting at which the amendment shall be considered and 
notice of the amendment shall be given as provided in the bylaws.
    Sec. 6.  [246A.06] [CORPORATE POWERS.] 
    Subdivision 1.  [AUTHORITY AND POWERS OF THE BOARD.] The 
corporation, through its board of directors, shall have the 
authority and all necessary power to do the following: 
    (1) prepare an annual budget governing the affairs of the 
corporation; 
    (2) hire and discharge a chief executive officer and 
assistants or other employees deemed necessary to carry out the 
corporation's affairs; 
    (3) establish personnel policies and a system of personnel 
management governing the employees of the corporation; 
    (4) acquire, encumber, hold, and convey through lease, 
purchase, gift, or otherwise any property, either real or 
personal; 
    (5) contract for the purchase of or furnishing of medical 
care and services, including the furnishing of medical care for 
the indigent; 
    (6) enter shared service and other cooperative ventures; 
    (7) join or sponsor membership in organizations intended to 
benefit the hospital or hospitals in general; 
    (8) enter partnerships; 
    (9) incorporate other corporations, both for profit and not 
for profit; 
    (10) have members of its governing authority or its 
officers or administrators serve as directors, officers, or 
employees of the ventures, associations, or corporations; 
    (11) own shares of stock in business corporations; 
    (12) offer, directly or indirectly, products and services 
of the hospital, organization, association, partnership, or 
corporation to the general public; 
    (13) sue and be sued; 
    (14) continue as a public corporation perpetually; 
    (15) enter into obligations or contracts and do any act 
incidental to the transaction of its business or expedient to 
its purposes, including purchasing insurance; 
    (16) acquire, hold, mortgage, pledge, or dispose of shares, 
bonds, securities, and other evidences of indebtedness of any 
domestic or foreign corporation, either profit or nonprofit and 
either public or private, and, if the owner thereof, to exercise 
all the rights, powers, and privileges of ownership, including 
the right to vote; 
    (17) conduct its affairs within and without this state; 
    (18) merge and consolidate with other corporations, 
domestic or foreign, organized for related purposes; 
    (19) make donations to other corporations, domestic or 
foreign, organized for related purposes; 
    (20) be a member of other corporations, whether domestic or 
foreign; 
    (21) obtain funds necessary for its operations by borrowing 
upon terms and conditions which the corporation finds to be in 
its best interests; 
    (22) accept from the United States, the state of Minnesota 
or its agencies or political subdivisions of government, and 
from private sources land, money, or other assistance;  
    (23) take any action relative to the delivery of health 
care services which could be taken by a nonprofit corporation 
under chapter 317, and shall, when so acting, have, in addition 
to any authority vested by law, the authority and legal capacity 
of a nonprofit corporation under chapter 317;  
    (24) pay a per diem and expenses to the members of the 
board of directors; and 
    (25) exercise any power conferred upon a private nonprofit 
corporation by chapter 317.  
    Subd. 2.  [OTHER POWERS.] The corporation shall have all 
the powers necessary and convenient for the operation, 
administration, management, and control of the corporation's 
affairs.  The enumeration of specific powers in this chapter is 
not intended to restrict the power of the corporation to take 
any action which in the exercise of its discretion is necessary 
or convenient to further the purposes for which the corporation 
exists, and that is not otherwise prohibited by law, whether or 
not the power to take the action is necessarily implied from the 
powers expressly granted.  
    Subd. 3.  [SUBSIDIARY CORPORATIONS.] Pursuant to the 
authority granted to the corporation in subdivision 1, clause 
(9), the corporation shall, at a minimum, create two subsidiary 
corporations.  One subsidiary corporation shall be charged with 
the governance and operation of the St. Paul Ramsey Medical 
Center.  The other subsidiary corporation shall be an 
association of physicians and dentists.  Both subsidiaries shall 
be governed by boards of directors that are elected by the 
corporation's board of directors.  The bylaws of both 
subsidiaries must be ratified by the corporation's board of 
directors prior to taking effect.  
    Subd. 4.  [EXCEPTION TO OTHER LAW.] Notwithstanding any law 
to the contrary, the hospital subsidiary corporation shall not 
be subject to the provisions of chapter 179A and sections 
471.345 to 471.37.  Notwithstanding any law to the contrary, any 
organization, association, partnership, or corporation created 
by, controlled by, or owned by the corporation shall not be 
subject to the provisions of chapters 13 and 179A, and sections 
471.345 to 471.37 and 471.705. 
    Sec. 7.  [246A.07] [CORPORATE SEAL.] 
    The corporation shall not have a corporate seal.  
    Sec. 8.  [246A.08] [ANNUAL MEETING.] 
    Each year the corporation shall hold a meeting which must 
be open to the public.  At this meeting the board of directors 
and the chief executive officers of the corporation shall report 
on the affairs of the corporation and goals for the future.  
    Sec. 9.  [246A.09] [ANNUAL AUDIT.] 
    Each year an audit must be conducted regarding the 
corporation's finances.  The audit must be conducted by an 
independent accountant selected by the board of directors and be 
performed in accordance with generally accepted accounting 
practices and auditing standards.  The audit report must be 
available for public inspection.  
    Sec. 10.  [246A.10] [PUBLIC DEPOSITORY.] 
    The corporation shall have jurisdiction over its accounts 
and payrolls and shall establish and maintain a public 
depository.  The depository must be subject to chapter 118, 
except that the corporation shall determine the appropriate 
security.  The corporation shall establish and maintain all 
necessary accounts.  The corporation may establish reserve 
accounts, depreciation accounts, and working capital funds in 
order to operate on an accrual basis.  
    Sec. 11.  [246A.11] [TRANSFER OF ASSETS.] 
    Subdivision 1.  [TRANSFER.] Notwithstanding any other law 
to the contrary, Ramsey county and the city of St. Paul, or 
either of them, may lease any property, real or personal, 
acquired by either or both for the establishment, operation, or 
maintenance of St. Paul Ramsey Medical Center, created by 
section 383A.41, or that has been turned over to the center for 
its use; however, the lease must only be to the corporation or 
one of its subsidiaries.  
    Subd. 2.  [NO ADVERTISING OR BIDS.] In the event Ramsey 
county and the city of St. Paul, or either of them, choose to 
exercise the authority granted in subdivision 1, they may do so 
without first advertising for bids and without receipt of any 
bids.  
    Subd. 3.  [CORPORATE STATUS.] The corporation shall be 
considered a "public corporation" for purposes of section 
465.035.  
    Subd. 4.  [REQUIREMENTS OF TRANSFER.] In the event Ramsey 
county and the city of St. Paul, or either of them, choose to 
exercise the authority granted in subdivision 1, the lease must 
also address the following:  
    (1) continued primary use of the property for health and 
hospital services;  
    (2) indigent care; and 
    (3) consideration to be paid for the property.  
    Subd. 5.  [PROPERTY TRANSFER TO CORPORATION.] All property, 
both real and personal, that is held by the St. Paul Ramsey 
Medical Center commission on the effective date of sections 1 to 
27 is transferred to the corporation. 
    Sec. 12.  [246A.12] [TRANSITIONAL PROVISIONS; STATUS OF 
PRESENT EMPLOYEES.] 
    Subdivision 1.  [EMPLOYEE TRANSFER.] All employees of the 
St. Paul Ramsey Medical Center commission, section 383A.41, 
shall be transferred to the hospital subsidiary corporation. 
    Subd. 2.  [CURRENT POSITIONS.] Each person holding a 
position with the St. Paul Ramsey Medical Center commission who 
has acquired permanent tenure or who was serving a probationary 
period on the effective date of this section may retain 
employment, seniority, and accrued benefits, including 
participation in deferred compensation programs.  These persons 
shall not be subject to the Ramsey county civil service 
personnel system law and the rules related to it. 
    Subd. 3.  [CHARITABLE HOSPITAL ACT.] Employees of the 
hospital subsidiary corporation shall be subject to the 
charitable hospitals act, sections 179.35 to 179.39.  
    Subd. 4.  [BARGAINING UNITS.] The hospital subsidiary 
corporation shall recognize existing bargaining units organized 
by employees of the St. Paul Ramsey Medical Center commission.  
The hospital subsidiary corporation shall recognize all current 
labor agreements and the terms of those agreements shall remain 
in force until the agreements expire by their terms. 
    Subd. 5.  [RETIREMENT EXCLUSION.] Persons initially 
employed by the hospital subsidiary corporation following the 
effective date of this section shall be excluded from the 
definition of "public employee" pursuant to the public employees 
retirement act, chapter 353. 
    Subd. 6.  [RETIREMENT ELECTION.] All employees presently 
members of the public employees retirement association 
transferred to the hospital subsidiary corporation pursuant to 
subdivision 2 shall continue to be included in the definition of 
"public employee" pursuant to the public employees retirement 
act, chapter 353.  The transferred employees shall not have the 
election to terminate their participation in the public 
employees retirement association created pursuant to chapter 353 
prior to June 30, 1987.  
    Subd. 7.  [POLITICAL SUBDIVISION.] Solely for the purpose 
of establishing equitable compensation relationships, the 
hospital subsidiary corporation shall be considered a political 
subdivision pursuant to Laws 1984, chapter 651.  Unless 
expressly provided otherwise in sections 1 through 29, this 
subdivision shall not be construed to mean that the hospital 
subsidiary corporation is a political subdivision for any other 
purpose.  
    Sec. 13.  [246A.13] [TRANSFER OF RIGHTS.] 
    Subdivision 1.  [CORPORATION AS CONTINUATION OF 
COMMISSION.] The hospital subsidiary corporation created by 
section 2 shall be considered a continuation of the Saint Paul 
Ramsey Medical Center commission and not the creation of a new 
authority.  The subsidiary corporation succeeds to all rights 
and contractual obligations of the commission with the same 
force and effect as if those rights and obligations had been 
continued in the commission itself.  
    Subd. 2.  [PENDING MATTERS.] The hospital subsidiary 
corporation may conduct and complete a legal action, 
administrative proceeding, or other matter commenced by the 
Saint Paul Ramsey Medical commission before the effective date 
of sections 1 to 27, and still pending on that date, in the same 
manner, under the same conditions, and with the same effect as 
though the action, proceeding, or other matter were conducted or 
completed by the commission.  
    Subd. 3.  [TRANSFER OF DOCUMENTS REQUIRED.] The Saint Paul 
Ramsey Medical commission shall transfer and deliver to the 
hospital subsidiary corporation all contracts, books, bonds, 
plans, papers, records, and other property of every description 
within the jurisdiction or control of the commission.  
    Subd. 4.  [TRANSFER OF FUNDS.] All unspent funds 
appropriated to the Saint Paul Ramsey Medical Center commission 
are transferred and appropriated to the hospital subsidiary 
corporation. 
    Sec. 14.  [246A.14] [LEGAL COUNSEL.] 
    The corporation and its subsidiaries may retain the Ramsey 
county attorney as its attorney and legal advisor.  If legal 
services are provided by the Ramsey county attorney, the 
corporation and its subsidiaries shall reimburse Ramsey county 
for the services and the reimbursement is to be credited to the 
budget of the Ramsey county attorney.  
    Sec. 15.  [246A.15] [BONDING AUTHORITY.] 
    Subdivision 1.  [MUNICIPALITY.] The corporation shall be 
considered a "municipality" pursuant to section 475.51, 
subdivision 2, for purposes of bond issuance and shall have all 
the authority conferred on municipalities by chapter 475 unless 
that authority is modified in this section.  
    Subd. 2.  [SALE OF BONDS.] Notwithstanding any enumerated 
powers, the corporation may issue and sell revenue bonds or 
other revenue obligations to finance capital improvements or for 
the acquisition and betterment of additional facilities to be 
utilized for the delivery of health care and related research or 
for other proper corporate purposes.  The revenue bonds or other 
revenue obligations must be payable solely from all or a portion 
of the revenues of the corporation. 
    Subd. 3.  [SECURITY FOR BONDS.] The bonds may be secured by 
a mortgage of the site and facilities, or any part of it.  The 
bonds must be in an amount and shall mature as provided by 
resolution of the board of directors and may be issued in one or 
more series and shall bear a date or dates, bear interest at a 
rate or rates, be in a denomination or denominations, be in the 
form either coupon or registered, carry the conversion or 
registration privileges, have rank or priority, be executed in 
the manner, be payable in medium of payment at the place or 
places, and be subject to the terms of redemption with or 
without premium as the resolution may provide.  The bonds may be 
sold at public or private sale at a price or prices determined 
by the resolution.  Notwithstanding any law to the contrary, the 
bonds must be fully negotiable.  The corporation may enter into 
the covenants the board by resolution shall deem necessary and 
proper to secure payment of the bonds.  The revenue bonds must 
state on their face that they are not payable from nor may be a 
charge upon any funds other than the revenues and property 
pledged or mortgaged for their payment, nor shall the 
corporation be subject to any liability on them or have the 
power to obligate itself to pay or pay the revenue bonds from 
funds other than the revenues and property pledged and 
mortgaged.  No holder or holders of the bonds shall ever have 
the right to compel any exercise of any taxing power of Ramsey 
county or any other public body to pay the principal of or 
interest on any of them, nor to enforce payment of them against 
any property of Ramsey county, the corporation, or any other 
public body other than that expressly pledged or mortgaged for 
their payment. 
    Sec. 16.  [246A.16] [OPEN MEETINGS.] 
    Subdivision 1.  [CORPORATION AND HOSPITAL SUBSIDIARY 
SUBJECT TO OPEN MEETING LAW.] The corporation and the hospital 
subsidiary corporation shall each be a "public body" for 
purposes of the Minnesota open meeting law, section 471.705. 
    Subd. 2.  [BOARD ACTION.] Notwithstanding any law to the 
contrary, the corporation and the hospital subsidiary 
corporation may meet in closed session to discuss and take 
action on specific matters involving contracts or marketing 
activity in cases where the corporation or its subsidiaries are 
in competition with health care providers that offer similar 
goods or services, and where the disclosure of information 
pertaining to such matters would cause harm to the competitive 
position of the corporation or its subsidiaries. 
     Subd. 3.  [CLOSED MEETINGS; RECORDING.] The board of 
directors may by a majority vote in a public meeting decide to 
hold a closed meeting pursuant to subdivision 2.  The time of 
commencement and place of the closed meeting shall be announced 
at the public meeting.  A written roll of members present at the 
closed meeting shall be made available to the public after the 
closed meeting.  The proceedings of a closed meeting shall be 
tape recorded at the expense of the board of directors and shall 
be preserved by it for two years.  The data on the tape are 
considered nonpublic data pursuant to Minnesota Statutes, 
section 13.02, subdivision 9. 
    Sec. 17.  [246A.17] [GOVERNMENT DATA PRACTICES ACT.] 
    Subdivision 1.  [POLITICAL SUBDIVISION.] The corporation 
and the hospital subsidiary corporation shall each be a 
"political subdivision" for purposes of the Minnesota government 
data practices act, chapter 13.  
    Subd. 2.  [TRADE SECRET INFORMATION.] Notwithstanding any 
law to the contrary, data concerning specific matters involving 
contracts or marketing activity in cases where the corporation 
or its subsidiaries are in competition with health care 
providers that offer similar goods or services are "trade secret 
information" for purposes of section 13.37, subdivision 2, to 
the extent disclosure of information pertaining to such matters 
would cause harm to the competitive position of the corporation 
or its subsidiaries. 
    Sec. 18.  [246A.18] [TORT LIABILITY.] 
    The corporation and the hospital subsidiary corporation 
shall each be a "municipality" for purposes of tort liability 
pursuant to chapter 466.  
    Sec. 19.  [246A.19] [PURCHASING.] 
    Subdivision 1.  [MUNICIPALITY STATUS.] The corporation 
shall not be a "municipality" pursuant to section 471.345, 
subdivision 1, for the purposes of the uniform municipal 
contracting law, sections 471.345 to 471.37.  
    Subd. 2.  [SERVICE CONTRACTS.] Notwithstanding any law to 
the contrary, the corporation may purchase directly or utilize 
the services of a nonprofit cooperative hospital service 
organization, the city of St. Paul, the state, the University of 
Minnesota, or any other political subdivision or agency of the 
state in the purchase of all goods, materials, and services that 
the corporation may require.  These purchases must be made in 
compliance with laws of the state, except that purchase through 
a nonprofit cooperative hospital service organization is not 
subject to sections 471.345 to 471.37.  
    Sec. 20.  [246A.20] [PUBLIC EMPLOYMENT.] 
    Unless otherwise provided by sections 1 to 27, the 
employees of the corporation and its subsidiaries are not 
"public employees" and the corporation is not a "public 
employer" for purposes of the public employment labor relations 
act, chapter 179A and the public employees retirement act, 
chapter 353.  
    Sec. 21.  [246A.21] [EMPLOYEE SALARY LIMITS AND 
COMPENSATION.] 
    Subdivision 1.  [EMPLOYEE SALARIES.] Notwithstanding 
section 43A.17, subdivision 9, or any other law to the contrary, 
the corporation and its subsidiaries have the discretion to set 
all employee salaries at levels which are considered appropriate 
by the respective boards of directors.  
    Subd. 2.  [EMPLOYEE COMPENSATION; CONSTRUCTION AND BUILDING 
TRADE.] The total compensation package, including wage plus 
benefit rates, of all employees that are members of a 
construction or building trade for which there is a generally 
established and recognized scale of wages inside the county, 
shall be equal to the total compensation package of private 
sector construction trade employees within the county as 
established by collective bargaining agreements. 
    Sec. 22.  [246A.22] [WORKERS' COMPENSATION.] 
    Subdivision 1.  [SELF-INSURANCE.] The corporation and its 
subsidiaries are permitted to self-insure their liability 
pursuant to section 176.181, subdivision 2. 
    Subd. 2.  [BENEFITS.] The appointing authority may provide 
for the payment of additional benefits to employees from their 
accumulated vacation, sick leave, or overtime credits if the 
employees of the corporation and any of its subsidiaries are 
entitled to the benefits of the workers' compensation law and 
have at the time of compensable injury accumulated credits under 
a vacation, sick leave, or overtime plan or system maintained by 
the corporation by which they are employed.  The additional 
payments to an employee may not exceed the amount of the total 
sick leave, vacation, or overtime credits accumulated by the 
employee and shall not result in the payment of a total weekly 
rate of compensation that exceeds the weekly wage of the 
employee.  The additional payments to any employee shall be 
charged against the sick leave, vacation, and overtime credits 
accumulated by the employee.  Employees of the corporation and 
any of its subsidiaries entitled to the benefits of the workers' 
compensation law may receive additional benefits pursuant to a 
collective bargaining agreement or other plan, entered into or 
in effect on or after January 1, 1980, providing payments by or 
on behalf of the employer and these additional benefits may be 
unrelated to any accumulated sick leave, holiday, or overtime 
credits and need not be charged against any accumulation; 
provided that the additional payments must not result in the 
payment of a total weekly rate of compensation that exceeds the 
weekly wage of the employee.  The corporation and its 
subsidiaries may adopt rules and regulations consistent with 
chapter 179 to carry out this section relating to payment of 
additional benefits to employees from accumulated sick leave, 
vacation, overtime credits, or other sources.  
    Sec. 23.  [246A.23] [DEFERRED COMPENSATION; INDIVIDUAL 
ANNUITY CONTRACTS.] 
    Subdivision 1.  [DEFERRAL OF COMPENSATION.] Notwithstanding 
any law to the contrary, at the request of an employee of the 
corporation or any of its subsidiaries, the appointing authority 
shall by payroll deduction defer the payment of part of the 
compensation of the employee, as provided in a written agreement 
between the employee and the appointing authority, in a manner 
that will qualify the deferred amount for benefits afforded 
under federal and state tax laws, regulations, and rulings.  
    Subd. 2.  [ANNUITY CONTRACT.] At the request of an employee 
and as part of the employee's compensation arrangement, the 
corporation, or any of its subsidiaries may negotiate and 
purchase an individual annuity contract from a company licensed 
to do business in the state of Minnesota for an employee for 
retirement or other purposes and may make payroll allocations in 
accordance with the arrangement for the purpose of paying the 
entire premium due or to become due under the annuity contract.  
The allocation shall be made in a manner that will qualify the 
annuity premiums, or a portion of them, for the benefit afforded 
under section 403(b) of the Internal Revenue Code of 1954, or 
any equivalent provisions of subsequent federal income tax law.  
The employee is the owner of the contract and the employee's 
rights under the contract are nonforfeitable except for failure 
to pay premiums. 
    Sec. 24.  [246A.24] [TAX EXEMPT STATUS.] 
    The corporation is an organization exempt from taxation 
pursuant to chapter 290 and chapter 297A.  
    Sec. 25.  [246A.25] [PREPAID HEALTH PLAN.] 
    The hospital subsidiary corporation is a county affiliated 
public teaching hospital for purposes of section 256D.03, 
subdivision 4. 
    Sec. 26.  [246A.26] [LIMITATIONS UPON CORPORATE POWERS.] 
    Subdivision 1.  [ATTEMPTS TO INFLUENCE LEGISLATION.] The 
corporation shall not create propaganda or otherwise attempt to 
influence legislation to such an extent as would result in the 
loss of exemption under section 501(c)(3) of the Internal 
Revenue Code of 1954.  The corporation shall not participate by 
the publication or distribution of statements or by any other 
means, in any political campaign on behalf of any candidate for 
public office. 
    Subd. 2.  [USE OF INCOME.] No part of the assets or income 
of the corporation shall be used for objects or purposes which 
are not exclusively charitable, educational, or scientific under 
section 501(c)(3) of the Internal Revenue Code of 1954, and the 
laws of the state of Minnesota.  
    Subd. 3.  [COMPENSATION LIMITATIONS.] No compensation or 
payment shall ever be made or paid to any officer, director, or 
trustee or the corporation except as reimbursement for actual 
expenditures made on behalf of the corporation and as reasonable 
compensation for services actually rendered.  No part of the net 
earnings and assets of the corporation shall inure to the 
benefit of any private individual, nor shall any part of the 
income or assets of the corporation be distributed to or divided 
among any private individual as dividends or otherwise.  The 
corporation shall not afford pecuniary gain, incidentally or 
otherwise, to its members except that the corporation may afford 
pecuniary gain to any member, as designated in the bylaws, that 
is a nonprofit corporation described in section 501(c)(3) of the 
Internal Revenue Code of 1954. 
    Subd. 4.  [TRANSFER UPON LIQUIDATION.] In the event of the 
liquidation or dissolution of the corporation, the net assets of 
the corporation shall be distributed to an entity qualified for 
exemption under section 501(c)(3) of the Internal Revenue Code 
of 1954 or to any federal, state, or local governmental unit for 
use by it for public purposes. 
    Sec. 27.  [246A.27] [INDIGENT CARE.] 
    Subdivision 1.  [SERVICES.] The hospital subsidiary 
corporation shall provide hospital and medical services for the 
indigent of Ramsey county.  The services shall be equivalent to 
those made available to nonindigent patients. 
    Subd. 2.  [FUNDS.] Notwithstanding any law to the contrary, 
Ramsey county may provide funds for the purchase of medical care 
for the indigent of Ramsey county from a provider selected by 
the county with or without public bid.  
    Sec. 28.  Laws of 1982, chapter 523, article 25, section 1, 
is amended to read: 
    Section 1.  [HOTEL AND MOTEL TAX.] 
    A tax, supplemental to the general sales tax imposed by 
Minnesota Statutes, Chapter 297A, is imposed on transient 
lodging in the city of St. Paul at a rate equal to three percent 
of the consideration paid for lodging and related services by a 
hotel, rooming house, tourist court, motel or trailer camp or 
for the granting of any similar license to use real property.  
The tax does not apply to a rental or lease for 30 or more days 
continuously.  This tax supersedes any similar tax imposed 
pursuant to city charter.  The tax shall be collected by and its 
proceeds paid to the city.  At least 25 Twenty-five percent of 
the revenues generated by the tax shall be used for the payment 
of the bonds and any interest or premium on the bonds authorized 
by section 2.  Seventy-five percent of the revenues generated by 
the tax shall be deposited in the city's general fund.  
    Sec. 29.  Laws 1977, chapter 402, section 2, is amended to 
read: 
    Sec. 2.  [LEXINGTON AVENUE SOUTH OF LARPENTEUR.] 
    The city of Saint Paul may not take or use existing park 
land for the redesign, reconstruction or widening of Lexington 
avenue south of Larpenteur avenue only if the redesign, 
reconstruction or widening: 
    (a) does not result in a traveled way on Lexington avenue 
between Horton avenue and Hoyt avenue greater than 32 feet, 
except for turning lanes, and 
    (b) is consistent with the Como Park master plan approved 
by the metropolitan council. 
    Sec. 30.  [VARIANCE NOT REQUIRED.] 
    Notwithstanding any other provision of law, the section of 
Lexington avenue that is located within Como Park in the city of 
Saint Paul does not require a variance from municipal state-aid 
engineering standards in order to be redesigned, reconstructed, 
or widened, and is eligible for inclusion in the money needs of 
the city on the same basis as other municipal state-aid streets 
in the city.  
    Sec. 31.  [AUTHORITY FOR TAXATION.] 
    Notwithstanding Minnesota Statutes, section 477A.016, or 
any other law, and supplemental to the tax imposed by Laws 1982, 
chapter 523, article 25, section 1, the city of St. Paul may 
impose, by ordinance, a tax, at a rate not greater than two 
percent, on the gross receipts from the furnishing for 
consideration of lodging at a hotel, rooming house, tourist 
court, motel, or resort, other than the renting or leasing of 
space for a continuous period of 30 days or more.  The tax does 
not apply to the furnishing of lodging by a business having less 
than 50 lodging rooms.  The tax shall be collected by and its 
proceeds paid to the city.  Ninety-five percent of the revenues 
generated by this tax shall be used to fund a convention bureau 
to market and promote the city as a tourist or convention center.
    Sec. 32.  [REPEALER.] 
    Minnesota Statutes 1984, section 383A.41, as amended by 
Laws 1985, chapter 89, section 21, is repealed. 
    Sec. 33.  [EFFECTIVE DATE.] 
    Sections 11, 12, 13, and 32 are effective when the initial 
board of directors take office according to section 3.  Sections 
1 to 10, and 14 to 27 are effective the day after the Ramsey 
county board files a certificate of local approval in compliance 
with section 645.021, subdivision 3. 
    Sections 28, 29, and 30 are effective the day after 
compliance with Minnesota Statutes, section 645.021, subdivision 
3, by the St. Paul city council.  Section 31 is effective the 
day after final enactment. 
    Approved March 25, 1986