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

  

                         Laws of Minnesota 1989 

                        CHAPTER 209-H.F.No. 1197 
           An act relating to Minnesota Statutes; correcting 
          erroneous, ambiguous, and omitted text and obsolete 
          references; eliminating certain redundant, 
          conflicting, and superseded provisions; making 
          miscellaneous technical corrections to statutes and 
          other laws; amending Minnesota Statutes 1988, sections 
          10A.01, subdivisions 5 and 18; 10A.32, subdivision 3a; 
          13.46, subdivision 2; 13.75, subdivision 2; 16A.26; 
          16B.28, subdivision 3; 18B.25, subdivision 4; 45.028, 
          subdivision 1; 69.32; 105.81; 115A.195; 115C.08, 
          subdivision 3; 116.44, subdivision 1; 122.23, 
          subdivision 18; 122.96, subdivision 3; 124.646, 
          subdivision 1; 124A.24; 124A.27, subdivision 1; 
          127.35; 136C.61, subdivision 1; 136D.27, subdivision 
          3; 136D.71; 136D.74, subdivision 2b; 136D.741, 
          subdivision 4; 136D.87, subdivision 3; 141.35; 
          144.122; 144.335, subdivision 2; 145A.07, subdivision 
          1; 145A.13; 157.03; 168.33, subdivision 2; 168A.24, 
          subdivision 2; 168A.29, subdivision 3; 169.345, 
          subdivision 2; 176.081, subdivision 1; 176.101, 
          subdivision 3e; 176.131, subdivision 1; 176.421, 
          subdivision 7; 205.065, subdivision 1; 205.18, 
          subdivision 2; 211B.15, subdivision 4; 214.01, 
          subdivision 2; 245.77; 256.01, subdivision 2; 256.991; 
          256B.69, subdivision 16; 256D.03, subdivision 4; 
          256G.02, subdivision 4; 256G.06; 257.354, subdivision 
          4; 268.04, subdivision 32; 268.10, subdivision 1; 
          272.02, subdivision 1; 273.124, subdivision 6; 290.05, 
          subdivision 3; 297.07, subdivision 3; 297.35, 
          subdivision 3; 298.2211, subdivision 1; 308.11; 
          340A.414, subdivision 6; 349.213, subdivision 2; 
          352.01, subdivision 2b; 353.01, subdivision 2a; 
          363.06, subdivision 4; 383B.229; 383B.77; 383C.331; 
          383C.334; 469.0721; 469.121, subdivision 1; 469.129, 
          subdivision 1; 471.562, subdivision 4; 471.563; 
          473.605, subdivision 2; 473.845, subdivision 1; 
          474A.02, subdivision 18; 480A.02, subdivision 7; 
          485.018, subdivision 2; 515A.3-115; 525.94, 
          subdivision 3; 548.09, subdivision 2; 604.02, 
          subdivision 1; 609.506, subdivision 1; and 611A.53, 
          subdivision 1; reenacting Minnesota Statutes 1988, 
          section 80A.14, subdivision 18; repealing Minnesota 
          Statutes 1988, sections 260.125, subdivision 6; 
          326.01, subdivision 21; and 362A.08; amending Laws 
          1976, chapter 134, section 79; Laws 1988, chapter 640, 
          section 5; and chapter 719, article 12, section 29; 
          repealing Laws 1965, chapter 267, section 1; Laws 
          1971, chapter 830, section 7; Laws 1976, chapter 2, 
          section 62; chapter 134, section 2; chapter 163, 
          section 10; and chapter 173, section 53; Laws 1977, 
          chapter 35, section 8; Laws 1978, chapter 496, section 
          1; and chapter 706, section 31; Laws 1979, chapter 48, 
          section 2; and chapter 184, section 3; Laws 1981, 
          chapter 271, section 1; Laws 1982, chapter 514, 
          section 15; Laws 1983, chapter 242, section 1; chapter 
          247, section 38; chapter 289, section 4; chapter 290, 
          sections 2 and 3; chapter 299, section 26; and chapter 
          303, sections 21 and 22; Laws 1984, chapter 654, 
          article 2, section 117; Laws 1986, chapter 312, 
          section 1; chapter 400, section 43; and chapter 452, 
          section 17; Laws 1986, First Special Session chapter 
          3, article 1, sections 74 and 79; and Laws 1987, 
          chapter 268, article 5, section 5; chapter 384, 
          article 2, section 25; chapter 385, section 7; chapter 
          403, article 5, section 1; and chapter 404, section 
          138. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1 
 REVISOR'S BILL
 STATUTORY CORRECTIONS
    Section 1.  Minnesota Statutes 1988, section 10A.01, 
subdivision 5, is amended to read: 
    Subd. 5.  [CANDIDATE.] "Candidate" means an individual who 
seeks nomination or election to any statewide or legislative 
office for which reporting is not required under federal laws.  
The term candidate shall also include an individual who seeks 
nomination or election to supreme court, court of appeals, or 
district court, county court, probate court, or county municipal 
court judgeships of the state.  An individual shall be deemed to 
seek nomination or election if the individual has taken the 
action necessary under the law of the state of Minnesota to 
qualify for nomination or election, has received contributions 
or made expenditures in excess of $100, or has given implicit or 
explicit consent for any other person to receive contributions 
or make expenditures in excess of $100, for the purpose of 
bringing about the individual's nomination or election.  A 
candidate remains a candidate until the candidate's principal 
campaign committee is dissolved as provided in section 10A.24. 
    Sec. 2.  Minnesota Statutes 1988, section 10A.01, 
subdivision 18, is amended to read: 
    Subd. 18.  "Public official" means any: 
    (a) member of the legislature; 
    (b) constitutional officer in the executive branch and the 
officer's chief administrative deputy; 
    (c) member, chief administrative officer or deputy chief 
administrative officer of a state board or commission which has 
at least one of the following powers:  (i) the power to adopt, 
amend or repeal rules, or (ii) the power to adjudicate contested 
cases or appeals; 
    (d) commissioner, deputy commissioner or assistant 
commissioner of any state department as designated pursuant to 
section 15.01; 
    (e) individual employed in the executive branch who is 
authorized to adopt, amend or repeal rules or adjudicate 
contested cases; 
    (f) executive director of the state board of investment; 
    (g) executive director of the Indian affairs intertribal 
board; 
    (h) commissioner of the iron range resources and 
rehabilitation board; 
    (i) director of mediation services; 
    (j) deputy of any official listed in clauses (e) to (i); 
    (k) judge of the workers' compensation court of appeals; 
    (l) administrative law judge or compensation judge in the 
state office of administrative hearings or hearing examiner 
referee in the department of jobs and training; 
    (m) solicitor general or deputy, assistant or special 
assistant attorney general; 
    (n) individual employed by the legislature as secretary of 
the senate, legislative auditor, chief clerk of the house, 
revisor of statutes, or researcher or attorney in the office of 
senate research, senate counsel, or house research; or 
    (o) member or chief administrative officer of the 
metropolitan council, regional transit board, metropolitan 
transit commission, metropolitan waste control commission, 
metropolitan parks and open spaces commission, metropolitan 
airports commission or metropolitan sports facilities commission.
    Sec. 3.  Minnesota Statutes 1988, section 10A.32, 
subdivision 3a, is amended to read: 
    Subd. 3a.  The commissioner of revenue shall, on the basis 
of vote totals provided by the secretary of state, calculate and 
certify to the board before the first day of July in an election 
year an estimate, after 100 percent of the tax returns have been 
processed, of the total amount in the general account, and the 
amount of money each candidate who qualifies as provided in 
section 10A.31, subdivision 6, may receive from the candidate's 
party account, based upon the formula set forth in section 
10A.31, subdivision 3 5.  Prior to the first day of filing for 
office, the board shall publish and forward to all filing 
officers these estimates.  Within seven days after the last day 
for filing for office the secretary of state shall certify to 
the board the name, address, office sought, and party 
affiliation of each candidate who has filed with that office the 
candidate's affidavit of candidacy or petition to appear on the 
ballot.  The auditor of each county shall certify to the board 
the same information for each candidate who has filed with that 
county an affidavit of candidacy or petition to appear on the 
ballot.  Within seven days thereafter the board shall estimate 
the minimum amount to be received by each candidate who 
qualifies as provided in section 10A.31, subdivisions 6 and 7, 
and notify all candidates on or before August 15 of the 
applicable amount.  The board shall include with the notice a 
form for the agreement provided in subdivision 3. 
    Sec. 4.  Minnesota Statutes 1988, section 13.46, 
subdivision 2, is amended to read: 
    Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
a statute specifically provides a different classification, data 
on individuals collected, maintained, used, or disseminated by 
the welfare system is private data on individuals, and shall not 
be disclosed except:  
    (1) pursuant to section 13.05; 
    (2) pursuant to court order; 
    (3) pursuant to a statute specifically authorizing access 
to the private data; 
    (4) to an agent of the welfare system, including a law 
enforcement person, attorney, or investigator acting for it in 
the investigation, or prosecution, of a criminal or civil 
proceeding relating to the administration of a program; 
    (5) to personnel of the welfare system who require the data 
to determine eligibility, amount of assistance, and the need to 
provide services of additional programs to the individual; 
    (6) to administer federal funds or programs; 
    (7) between personnel of the welfare system working in the 
same program; 
    (8) the amounts of cash public assistance and relief paid 
to welfare recipients in this state, including their names and 
social security numbers, upon request by the department of 
revenue to administer the property tax refund law, supplemental 
housing allowance, and the income tax; 
    (9) to the Minnesota department of jobs and training for 
the purpose of monitoring the eligibility of the data subject 
for unemployment compensation, for any employment or training 
program administered, supervised, or certified by that agency, 
or for the purpose of administering any rehabilitation program, 
whether alone or in conjunction with the welfare system; 
    (10) to appropriate parties in connection with an emergency 
if knowledge of the information is necessary to protect the 
health or safety of the individual or other individuals or 
persons; or 
    (11) data maintained by residential facilities as defined 
in section 245A.02, subdivision 6, may be disclosed to the 
protection and advocacy system established in this state 
pursuant to Part C of Public Law Number 98-527 to protect the 
legal and human rights of persons with mental retardation or 
other related conditions who live in residential facilities for 
these persons if the protection and advocacy system receives a 
complaint by or on behalf of that person and the person does not 
have a legal guardian or the state or a designee of the state is 
the legal guardian of the person. 
    (b) Mental health data shall be treated as provided in 
subdivisions 7, 8, and 9, but is not subject to the access 
provisions of subdivision 10, paragraph (b).  
    Sec. 5.  Minnesota Statutes 1988, section 16B.28, 
subdivision 3, is amended to read: 
    Subd. 3.  [REVOLVING FUND.] (a)  [CREATION.] The materials 
distribution revolving fund is a separate fund in the state 
treasury.  All money relating to the resource recovery program 
established under section 115A.15, subdivision 1, all money 
resulting from the acquisition, acceptance, warehousing, 
distribution, and public sale of surplus property, all money 
resulting from the sale of centrally acquired, warehoused, and 
distributed supplies, materials, and equipment, and all money 
relating to the cooperative purchasing venture established under 
section 421.59 471.59 must be deposited in the fund.  Money paid 
into the materials distribution revolving fund is appropriated 
to the commissioner for the purposes of the programs and 
services referred to in this section.  
    (b)  [TRANSFER OR SALE TO STATE AGENCY.] When the state or 
an agency operating under a legislative appropriation obtains 
surplus property from the commissioner, the commissioner of 
finance must, at the commissioner's request, transfer the cost 
of the surplus property, including any expenses of acquiring, 
accepting, warehousing, and distributing the surplus property, 
from the appropriation of the state agency receiving the surplus 
property to the materials distribution revolving fund.  The 
determination of the commissioner is final as to the cost of the 
surplus property to the state agency receiving the property.  
    (c)  [TRANSFER OR SALE TO OTHER GOVERNMENTAL UNITS OR 
NONPROFIT ORGANIZATIONS.] When any governmental unit or 
nonprofit organization other than a state agency receives 
surplus property, supplies, materials, or equipment from the 
commissioner, the governmental unit or nonprofit organization 
must reimburse the materials distribution revolving fund for the 
cost of the property, including the expenses of acquiring, 
accepting, warehousing, and distributing it, in an amount the 
commissioner sets.  The commissioner may, however, require the 
governmental unit or nonprofit organization to deposit in 
advance in the materials distribution revolving fund the cost of 
the surplus property, supplies, materials, and equipment upon 
mutually agreeable terms and conditions.  The commissioner may 
charge a fee to political subdivisions and nonprofit 
organizations to establish their eligibility for receiving the 
property and to pay for costs of storage and distribution.  
    Sec. 6.  Minnesota Statutes 1988, section 18B.25, 
subdivision 4, is amended to read:  
    Subd. 4.  [DISPOSAL THAT BECOMES HAZARDOUS WASTE.] A person 
who knowingly, or with reason to know, disposes of a pesticide 
so that the product becomes hazardous waste is subject to the 
penalties in section 115.071 609.671, subdivision 4. 
    Sec. 7.  Minnesota Statutes 1988, section 69.32, is amended 
to read: 
    69.32 [CITY CLERK TO FILE REPORT WITH COMMISSIONER.] 
    The clerk of each city of the first class having a 
firefighters' relief association shall, on or before March 1 
each year, make and file with the county auditor and the 
commissioner of commerce a certificate stating the existence of 
the firefighters' relief association and any other information 
the commissioner or auditor may require. 
    Sec. 8.  Minnesota Statutes 1988, section 80A.14, 
subdivision 18, is reenacted. 
    Sec. 9.  Minnesota Statutes 1988, section 115A.195, is 
amended to read: 
    115A.195 [PUBLIC PARTICIPATION IN OWNERSHIP AND MANAGEMENT 
OF FACILITY.] 
    The stabilization and containment facility developed under 
sections 115A.18 to 115A.30 may be wholly owned by the state or 
jointly owned by the state and a developer selected by the board 
under section 115A.191 115A.192.  The board chair may negotiate 
and the board may enter agreements with a selected developer 
providing terms and conditions for the development and operation 
of the facility.  If the agreements provide for capital 
improvements or equipment, or for payment of state money, the 
agreements may be implemented only if funds are appropriated and 
available to the board for those purposes.  
    Sec. 10.  Minnesota Statutes 1988, section 115C.08, 
subdivision 3, is amended to read:  
    Subd. 3.  [PETROLEUM TANK RELEASE CLEANUP FEE.] A petroleum 
tank release cleanup fee is imposed on the use of tanks that 
contain petroleum products subject to the inspection fee charged 
in section 296.13 239.78.  The fee must be collected in the 
manner provided in sections 296.13 239.78 and 296.14.  The fee 
must be imposed as required under subdivision 3, at a rate of 
$10 per 1,000 gallons of petroleum products as defined in 
section 296.01, subdivision 2, rounded to the nearest 1,000 
gallons.  A distributor who fails to pay the fee imposed under 
this section is subject to the penalties provided in section 
296.15. 
    Sec. 11.  Minnesota Statutes 1988, section 116.44, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIST OF AREAS.] By January 1, 1983, the 
pollution control agency shall publish a preliminary list of 
counties determined to contain natural resources sensitive to 
the impacts of acid deposition.  Sensitive areas shall be 
designated on the basis of:  
    (a) the presence of plants and animal species which are 
sensitive to acid deposition; 
    (b) geological information identifying those areas which 
have insoluble bedrock which is incapable of adequately 
neutralizing acid deposition; and 
    (c) existing acid deposition reports and data prepared by 
the pollution control agency and the federal environmental 
protection agency.  The pollution control agency shall conduct 
public meetings on the preliminary list of acid deposition 
sensitive areas.  Meetings shall be concluded by March 1, 1983, 
and a final list published by May 1, 1983.  The list shall not 
be subject to the rulemaking or contested case provisions of 
chapter 15 14. 
    Sec. 12.  Minnesota Statutes 1988, section 124.646, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] (a) Each 
school year, school districts participating in the national 
school lunch program shall be paid by the state in the amount of 
7.5 cents for each full paid student lunch served to students in 
the district.  
    (b) Each school year, school districts participating in the 
national school lunch program shall be paid by the state in the 
amount of 7.5 cents for each full paid student lunch served to 
students in the district. 
    Sec. 13.  Minnesota Statutes 1988, section 141.35, is 
amended to read: 
     141.35 [EXEMPTIONS.] 
     None of the provisions of sections 141.21 to 141.36 shall 
apply to the following: 
     (a) Colleges authorized by the laws of Minnesota or of any 
other state or foreign country to grant degrees; 
     (b) Schools of nursing accredited by the state board of 
nursing or an equivalent public board of another state or 
foreign country; 
     (c) Public schools as defined in section 120.05; 
     (d) Private schools complying with the requirements of 
section 120.10, subdivision 2; 
     (e) Private and parochial nonprofit schools exempt from 
taxation under the constitution of Minnesota; 
     (f) Courses taught to students in a valid apprenticeship 
program taught by or required by a trade union; 
     (g) Schools exclusively engaged in training physically or 
mentally handicapped persons for the state of Minnesota; 
     (h) Schools now or hereafter licensed by boards authorized 
under Minnesota law to issue such licenses; 
     (i) Schools and educational programs, or training programs, 
conducted by persons, firms, corporations, or associations, for 
the training of their own employees, for which no fee is charged 
the employee; 
    (j) Schools engaged exclusively in the teaching of purely 
avocational or recreational subjects as determined by the 
commissioner.  Private schools teaching a method or procedure to 
increase the speed with which a student reads are not within 
this exemption; 
    (k) Driver training schools and instructors as defined in 
section 171.33, subdivisions 1 and 2; 
    (l) Classes, courses, or programs conducted by a bona fide 
trade, professional, or fraternal organization, solely for that 
organization's membership; 
    (m) Courses of instruction in the fine arts provided by 
organizations exempt from taxation pursuant to section 290.05 
and registered with the Minnesota department of commerce 
attorney general pursuant to chapter 309.  "Fine arts" means 
activities resulting in artistic creation or artistic 
performance of works of the imagination which are engaged in for 
the primary purpose of creative expression rather than 
commercial sale or employment.  In making this determination the 
commissioner may seek the advice and recommendation of the 
Minnesota board of the arts; 
    (n) Classes, courses, or programs intended to fulfill the 
continuing education requirements for licensure or certification 
in a profession, which classes, courses, or programs have been 
approved by a legislatively or judicially established board or 
agency responsible for regulating the practice of the 
profession, and which are offered primarily to a person who 
currently practices the profession. 
    Sec. 14.  Minnesota Statutes 1988, section 144.122, is 
amended to read: 
    144.122 [LICENSE AND PERMIT FEES.] 
    (a) The state commissioner of health, by rule, may 
prescribe reasonable procedures and fees for filing with the 
commissioner as prescribed by statute and for the issuance of 
original and renewal permits, licenses, registrations, and 
certifications issued under authority of the commissioner.  The 
expiration dates of the various licenses, permits, 
registrations, and certifications as prescribed by the rules 
shall be plainly marked thereon.  Fees may include application 
and examination fees and a penalty fee for renewal applications 
submitted after the expiration date of the previously issued 
permit, license, registration, and certification.  The 
commissioner may also prescribe, by rule, reduced fees for 
permits, licenses, registrations, and certifications when the 
application therefor is submitted during the last three months 
of the permit, license, registration, or certification period.  
Fees proposed to be prescribed in the rules shall be first 
approved by the department of finance.  All fees proposed to be 
prescribed in rules shall be reasonable.  The fees shall be in 
an amount so that the total fees collected by the commissioner 
will, where practical, approximate the cost to the commissioner 
in administering the program.  All fees collected shall be 
deposited in the state treasury and credited to the general fund 
unless otherwise specifically appropriated by law for specific 
purposes. 
    (b) The commissioner may charge a fee for voluntary 
certification of medical laboratories and environmental 
laboratories, and for environmental and medical laboratory 
services provided by the department, without complying with 
subdivision 1 paragraph (a) or chapter 14.  Fees charged for 
environment and medical laboratory services provided by the 
department must be approximately equal to the costs of providing 
the services.  
    Sec. 15.  Minnesota Statutes 1988, section 144.335, 
subdivision 2, is amended to read: 
    Subd. 2.  [PATIENT ACCESS.] (a) Upon request, a provider 
shall supply to a patient complete and current information 
possessed by that provider concerning any diagnosis, treatment 
and prognosis of the patient in terms and language the patient 
can reasonably be expected to understand. 
     (b) Upon a patient's written request, a provider, at a 
reasonable cost to the patient, shall furnish to the patient (1) 
copies of the patient's health record, including but not limited 
to laboratory reports, X-rays, prescriptions, and other 
technical information used in assessing the patient's health 
condition, or (2) the pertinent portion of the record relating 
to a condition specified by the patient.  With the consent of 
the patient, the provider may instead furnish only a summary of 
the record.  The provider may exclude from the health record 
written speculations about the patient's health condition, 
except that all information necessary for the patient's informed 
consent must be provided. 
     (c) If a provider, as defined in subdivision 1, clause 
(b)(1), reasonably determines that the information is 
detrimental to the physical or mental health of the patient, or 
is likely to cause the patient to inflict self harm, or to harm 
another, the provider may withhold the information from the 
patient and may supply the information to an appropriate third 
party or to another provider, as defined in subdivision 1, 
clause (b)(1).  The other provider or third party may release 
the information to the patient. 
    (d) A provider as defined in subdivision 1, clause 
(b)(2)(3), shall release information upon written request 
unless, prior to the request, a provider as defined in 
subdivision 1, clause (b)(1), has designated and described a 
specific basis for withholding the information as authorized by 
paragraph (c). 
    Sec. 16.  Minnesota Statutes 1988, section 168.33, 
subdivision 2, is amended to read: 
    Subd. 2.  [POWERS.] The registrar shall have the power to 
appoint, hire and discharge and fix the compensation of the 
necessary employees, in the manner provided by law, as may be 
required to enable the registrar to properly carry out the 
duties imposed by the provisions of this chapter.  As of April 
14, 1976, The registrar may appoint, and for cause discontinue, 
a deputy registrar for any city as the public interest and 
convenience may require, without regard to whether the county 
auditor of the county in which the city is situated has been 
appointed as the deputy registrar for the county or has been 
discontinued as the deputy registrar for the county, and without 
regard to whether the county in which the city is situated has 
established a county license bureau which issues motor vehicle 
licenses as provided in section 373.32. 
    Effective August 1, 1976, The registrar may appoint, and 
for cause discontinue, a deputy registrar for any city as the 
public interest and convenience may require, if the auditor for 
the county in which the city is situated chooses not to accept 
appointment as the deputy registrar for the county or is 
discontinued as a deputy registrar, or if the county in which 
the city is situated has not established a county license bureau 
which issues motor vehicle license as provided in section 
373.32.  Any person appointed by the registrar as a deputy 
registrar for any city shall be a resident of the county in 
which the city is situated. 
     The registrar may appoint, and for cause discontinue, the 
county auditor of each county as a deputy registrar.  Upon 
approval of the county board, the auditor, with the approval of 
the director of motor vehicles, may appoint, and for cause 
discontinue, the clerk or equivalent officer of each city or any 
other person as a deputy registrar as public interest and 
convenience may require, regardless of the appointee's county of 
residence.  Notwithstanding any other provision, a person other 
than a county auditor or a director of a county license bureau, 
who was appointed by the registrar before August 1, 1976, as a 
deputy registrar for any city, may continue to serve as deputy 
registrar and may be discontinued for cause only by the 
registrar.  The county auditor who appointed the deputy 
registrars shall be responsible for the acts of deputy 
registrars appointed by the auditor.  Each such deputy, before 
entering upon the discharge of duties, shall take and subscribe 
an oath to faithfully discharge the duties and to uphold the 
laws of the state.  If a deputy registrar appointed hereunder is 
not an officer or employee of a county or city, such deputy 
shall in addition give bond to the state in the sum of $10,000, 
or such larger sum as may be required by the registrar, 
conditioned upon the faithful discharge of duties as deputy 
registrar.  A corporation governed by chapter 302A may be 
appointed a deputy registrar.  Upon application by an individual 
serving as a deputy registrar and the giving of the requisite 
bond as provided in subdivision 2, personally assured by the 
individual or another individual approved by the commissioner of 
public safety, a corporation named in an application shall 
become the duly appointed and qualified successor to the deputy 
registrar.  Each deputy registrar appointed hereunder shall keep 
and maintain, in a convenient public place within the place for 
which appointed, a registration and motor vehicle tax collection 
bureau, to be approved by the registrar, for the registration of 
motor vehicles and the collection of motor vehicle taxes 
thereon.  The deputy registrar shall keep such records and make 
such reports to the registrar as that officer, from time to 
time, may require.  Such records shall be maintained at the 
facility of the deputy registrar.  The records and facilities of 
the deputy registrar shall at all times be open to the 
inspection of the registrar or the registrar's agents.  The 
deputy registrar shall report to the registrar by the next 
working day following receipt all registrations made and taxes 
and fees collected by the deputy registrar.  The filing fee 
imposed pursuant to subdivision 7 shall be deposited in the 
treasury of the place for which appointed, or if not a public 
official, such deputy shall retain the filing fee, but the 
registration tax and any additional fees for delayed 
registration the deputy registrar has collected the deputy 
registrar shall deposit by the next working day following 
receipt in an approved state depository to the credit of the 
state through the state treasurer.  The place for which the 
deputy registrar is appointed through its governing body shall 
provide the deputy registrar with facilities and personnel to 
carry out the duties imposed by this subdivision if such deputy 
is a public official.  In all other cases, the deputy shall 
maintain a suitable facility for serving the public.  
    Sec. 17.  Minnesota Statutes 1988, section 169.345, 
subdivision 2, is amended to read:  
    Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
"physically handicapped person" means a person who: 
    (1) because of disability cannot walk without significant 
risk of falling; 
    (2) because of disability cannot walk 200 feet without 
stopping to rest; 
    (3) because of disability cannot walk without the aid of 
another person, a walker, a cane, crutches, braces, a prosthetic 
device, or a wheelchair; 
    (4) is restricted by a respiratory disease to such an 
extent that the person's forced (respiratory) expiratory volume 
for one second, when measured by spirometry, is less than one 
meter liter; 
    (5) has an arterial oxygen tension (PAO2) of less than 60 
mm/hg mm/Hg on room air at rest; 
    (6) uses portable oxygen; or 
    (7) has a cardiac condition to the extent that the person's 
functional limitations are classified in severity as class III 
or class IV according to standards set by the American Heart 
Association. 
    Sec. 18.  Minnesota Statutes 1988, section 176.131, 
subdivision 1, is amended to read: 
    Subdivision 1.  If an employee incurs personal injury and 
suffers disability from that injury alone that is substantially 
greater, because of a preexisting physical impairment, than what 
would have resulted from the personal injury alone, the employer 
or insurer shall pay all compensation provided by this chapter, 
but the employer shall be reimbursed from the special 
compensation fund for all compensation paid in excess of 52 
weeks of monetary benefits and $2,000 in medical expenses, 
subject to the exceptions in paragraphs (a), and (b), and (c):  
    (a) If the disability caused by the subsequent injury is 
made substantially greater by the employee's registered 
preexisting physical impairment, there shall be apportionment of 
liability among all injuries.  The special compensation fund 
shall only reimburse for that portion of the compensation, 
medical expenses, and rehabilitation expenses attributed to the 
subsequent injury after the applicable deductible has been met. 
    (b) If the subsequent personal injury alone results in 
permanent partial disability to a scheduled member under the 
schedule adopted by the commissioner pursuant to section 
176.105, the special compensation fund shall not reimburse 
permanent partial disability, medical expenses, or 
rehabilitation expenses. 
    Sec. 19.  Minnesota Statutes 1988, section 205.065, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CITIES OF FIRST CLASS.] A municipal 
primary for the purpose of nominating elective officers may be 
held in any city of the first class on the second or third 
Tuesday in March of any year in which a municipal general 
election is to be held for the purpose of electing officers. 
    If the majority of the governing body of a city of the 
first class adopted a resolution after June 24, 1957 
establishing the second or third Tuesday in March for holding 
its municipal primary in any year in which its municipal general 
election is held, and if the city clerk or other officer of the 
city charged with keeping the minutes and records of the 
governing body filed a certified copy of the resolution with the 
secretary of state and another certified copy of the resolution 
with the county recorder of the county in which the city is 
located, the time established by the resolution for holding the 
municipal primary is fixed, and the governing body of the city 
may not change the time unless the authority to make the change 
is conferred on the governing body by the legislature, or by an 
amendment to the charter of the city duly ratified and accepted 
by the eligible voters of the city, in accordance with the 
constitution of the state of Minnesota, article IV, section 36, 
and other applicable law. 
    Sec. 20.  Minnesota Statutes 1988, section 205.18, 
subdivision 2, is amended to read: 
    Subd. 2.  [RESOLUTION OF GOVERNING BODY.] Not less than 60 
days after April 25, 1957, the governing body of any city of the 
first class may, by a majority vote of all the members of such 
body, adopt a resolution fixing and establishing the second or 
third Tuesday in March for the holding of such municipal primary 
in any year in which a general municipal election is to be held 
in such city.  If and when the governing body of any such city 
adopts a resolution fixing and establishing the time of the 
holding of a municipal primary, as provided for in this section, 
the city clerk or other officer of such city charged with the 
duty of keeping the minutes and records of the governing body of 
such city, shall forthwith file a duly certified copy of such 
resolution with the secretary of state and another duly 
certified copy of such resolution with the county recorder of 
the county in which such city is located; and thereupon, the 
time fixed and established by such resolution for the holding of 
such municipal primary shall become fixed, and no power shall 
thereafter exist in the governing body of any such city to 
change the time of the holding of such municipal primary unless 
the authority to make such change is thereafter conferred upon 
such governing body by an act of the legislature, or by an 
amendment to the charter of such city duly ratified and accepted 
by the qualified electors of such city, in accordance with the 
constitution of the state of Minnesota, Article IV, Section 36, 
and all applicable acts thereunto enabling. 
    Sec. 21.  Minnesota Statutes 1988, section 214.01, 
subdivision 2, is amended to read: 
    Subd. 2.  "Health-related licensing board" means the board 
of examiners of nursing home administrators established pursuant 
to section 144A.19, the board of medical examiners created 
pursuant to section 147.01, the board of nursing created 
pursuant to section 148.181, the board of chiropractic examiners 
established pursuant to section 148.02, the board of optometry 
established pursuant to section 148.52, the board of psychology 
established pursuant to section 148.90, the social work 
licensing board pursuant to section 148B.19, the board of 
marriage and family therapy pursuant to section 148B.30, the 
board of unlicensed mental health service providers established 
pursuant to section 148B.41, the board of dentistry established 
pursuant to section 150A.02, the board of pharmacy established 
pursuant to section 151.02, the board of podiatric medicine 
established pursuant to section 153.02, and the board of 
veterinary medicine, established pursuant to section 156.01. 
    Sec. 22.  Minnesota Statutes 1988, section 256.01, 
subdivision 2, is amended to read: 
    Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
section 241.021, subdivision 2, the commissioner of human 
services shall: 
    (1) Administer and supervise all forms of public assistance 
provided for by state law and other welfare activities or 
services as are vested in the commissioner.  Administration and 
supervision of human services activities or services includes, 
but is not limited to, assuring timely and accurate distribution 
of benefits, completeness of service, and quality program 
management.  In addition to administering and supervising human 
services activities vested by law in the department, the 
commissioner shall have the authority to: 
    (a) require local agency participation in training and 
technical assistance programs to promote compliance with 
statutes, rules, federal laws, regulations, and policies 
governing human services; 
    (b) monitor, on an ongoing basis, the performance of local 
agencies in the operation and administration of human services, 
enforce compliance with statutes, rules, federal laws, 
regulations, and policies governing welfare services and promote 
excellence of administration and program operation; 
    (c) develop a quality control program or other monitoring 
program to review county performance and accuracy of benefit 
determinations; 
     (d) require local agencies to make an adjustment to the 
public assistance benefits issued to any individual consistent 
with federal law and regulation and state law and rule and to 
issue or recover benefits as appropriate; 
     (e) delay or deny payment of all or part of the state and 
federal share of benefits and administrative reimbursement 
according to the procedures set forth in section 256.017; and 
     (f) make contracts with and grants to public and private 
agencies and organizations, both profit and nonprofit, and 
individuals, using appropriated funds. 
     (2) Inform local agencies, on a timely basis, of changes in 
statute, rule, federal law, regulation, and policy necessary to 
local agency administration of the programs. 
     (3) Administer and supervise all child welfare activities; 
promote the enforcement of laws protecting handicapped, 
dependent, neglected and delinquent children, and children born 
to mothers who were not married to the children's fathers at the 
times of the conception nor at the births of the children; 
license and supervise child-caring and child-placing agencies 
and institutions; supervise the care of children in boarding and 
foster homes or in private institutions; and generally perform 
all functions relating to the field of child welfare now vested 
in the state board of control. 
     (4) Administer and supervise all noninstitutional service 
to handicapped persons, including those who are visually 
impaired, hearing impaired, or physically impaired or otherwise 
handicapped.  The commissioner may provide and contract for the 
care and treatment of qualified indigent children in facilities 
other than those located and available at state hospitals when 
it is not feasible to provide the service in state hospitals. 
     (5) Assist and actively cooperate with other departments, 
agencies and institutions, local, state, and federal, by 
performing services in conformity with the purposes of Laws 
1939, chapter 431. 
     (6) Act as the agent of and cooperate with the federal 
government in matters of mutual concern relative to and in 
conformity with the provisions of Laws 1939, chapter 431, 
including the administration of any federal funds granted to the 
state to aid in the performance of any functions of the 
commissioner as specified in Laws 1939, chapter 431, and 
including the promulgation of rules making uniformly available 
medical care benefits to all recipients of public assistance, at 
such times as the federal government increases its participation 
in assistance expenditures for medical care to recipients of 
public assistance, the cost thereof to be borne in the same 
proportion as are grants of aid to said recipients. 
     (7) Establish and maintain any administrative units 
reasonably necessary for the performance of administrative 
functions common to all divisions of the department. 
     (8) The commissioner is designated as guardian of both the 
estate and the person of all the wards of the state of 
Minnesota, whether by operation of law or by an order of court, 
without any further act or proceeding whatever, except as to 
persons committed as mentally retarded.  
     (9) Act as coordinating referral and informational center 
on requests for service for newly arrived immigrants coming to 
Minnesota. 
     (10) The specific enumeration of powers and duties as 
hereinabove set forth shall in no way be construed to be a 
limitation upon the general transfer of powers herein contained. 
     (11) Establish county, regional, or statewide schedules of 
maximum fees and charges which may be paid by local agencies for 
medical, dental, surgical, hospital, nursing and nursing home 
care and medicine and medical supplies under all programs of 
medical care provided by the state and for congregate living 
care under the income maintenance programs. 
     (12) Have the authority to conduct and administer 
experimental projects to test methods and procedures of 
administering assistance and services to recipients or potential 
recipients of public welfare.  To carry out such experimental 
projects, it is further provided that the commissioner of human 
services is authorized to waive the enforcement of existing 
specific statutory program requirements, rules, and standards in 
one or more counties.  The order establishing the waiver shall 
provide alternative methods and procedures of administration, 
shall not be in conflict with the basic purposes, coverage, or 
benefits provided by law, and in no event shall the duration of 
a project exceed four years.  It is further provided that no 
order establishing an experimental project as authorized by the 
provisions of this section shall become effective until the 
following conditions have been met: 
     (a) The proposed comprehensive plan including estimated 
project costs and the proposed order establishing the waiver 
shall be filed with the secretary of the senate and chief clerk 
of the house of representatives at least 60 days prior to its 
effective date. 
     (b) The secretary of health, education, and welfare of the 
United States has agreed, for the same project, to waive state 
plan requirements relative to statewide uniformity. 
     (c) A comprehensive plan, including estimated project 
costs, shall be approved by the legislative advisory commission 
and filed with the commissioner of administration.  
     (13) In accordance with federal requirements establish 
procedures to be followed by local welfare boards in creating 
citizen advisory committees, including procedures for selection 
of committee members. 
     (14) Allocate federal fiscal disallowances or sanctions 
which are based on quality control error rates for the aid to 
families with dependent children, medical assistance, or food 
stamp program in the following manner:  
     (a) One-half of the total amount of the disallowance shall 
be borne by the county boards responsible for administering the 
programs.  For the medical assistance and AFDC programs, 
disallowances shall be shared by each county board in the same 
proportion as that county's expenditures for the sanctioned 
program are to the total of all counties' expenditures for the 
AFDC and medical assistance programs.  For the food stamp 
program, sanctions shall be shared by each county board, with 50 
percent of the sanction being distributed to each county in the 
same proportion as that county's administrative costs for food 
stamps are to the total of all food stamp administrative costs 
for all counties, and 50 percent of the sanctions being 
distributed to each county in the same proportion as that 
county's value of food stamp benefits issued are to the total of 
all benefits issued for all counties.  Each county shall pay its 
share of the disallowance to the state of Minnesota.  When a 
county fails to pay the amount due hereunder, the commissioner 
may deduct the amount from reimbursement otherwise due the 
county, or the attorney general, upon the request of the 
commissioner, may institute civil action to recover the amount 
due. 
     (b) Notwithstanding the provisions of paragraph (a), if the 
disallowance results from knowing noncompliance by one or more 
counties with a specific program instruction, and that knowing 
noncompliance is a matter of official county board record, the 
commissioner may require payment or recover from the county or 
counties, in the manner prescribed in paragraph (a), an amount 
equal to the portion of the total disallowance which resulted 
from the noncompliance, and may distribute the balance of the 
disallowance according to paragraph (a).  
     (15) Develop and implement special projects that maximize 
reimbursements and result in the recovery of money to the 
state.  For the purpose of recovering state money, the 
commissioner may enter into contracts with third parties.  Any 
recoveries that result from projects or contracts entered into 
under this paragraph shall be deposited in the state treasury 
and credited to a special account until the balance in the 
account reaches $400,000.  When the balance in the account 
exceeds $400,000, the excess shall be transferred and credited 
to the general fund.  All money in the account is appropriated 
to the commissioner for the purposes of this paragraph. 
     (16) Have the authority to make direct payments to 
facilities providing shelter to women and their children 
pursuant to section 256D.05, subdivision 3.  Upon the written 
request of a shelter facility that has been denied payments 
under section 256.05 256D.05, subdivision 3, the commissioner 
shall review all relevant evidence and make a determination 
within 30 days of the request for review regarding issuance of 
direct payments to the shelter facility.  Failure to act within 
30 days shall be considered a determination not to issue direct 
payments. 
    Sec. 23.  Minnesota Statutes 1988, section 256B.69, 
subdivision 16, is amended to read: 
    Subd. 16.  [PROJECT EXTENSION.] Minnesota Rules, parts 
9550.1450 9500.1450; 9500.1451; 9500.1452; 9500.1453; 9500.1454; 
9500.1455; 9500.1456; 9500.1457; 9500.1458; 9500.1459; 
9500.1460; 9500.1461; 9500.1462; 9500.1463; and 9500.1464 are 
extended until December 31, 1990.  
    Sec. 24.  Minnesota Statutes 1988, section 256D.03, 
subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
Reimbursement under the general assistance medical care program 
shall be limited to the following categories of service: 
inpatient hospital care, outpatient hospital care, services 
provided by medicare certified rehabilitation agencies, 
prescription drugs, equipment necessary to administer insulin 
and diagnostic supplies and equipment for diabetics to monitor 
blood sugar level, eyeglasses and eye examinations provided by a 
physician or optometrist, hearing aids, prosthetic devices, 
laboratory and X-ray services, physician's services, medical 
transportation, chiropractic services as covered under the 
medical assistance program, podiatric services, and dental 
care.  In addition, payments of state aid shall be made for: 
    (1) outpatient services provided by a mental health center 
or clinic that is under contract with the county board and is 
certified under Minnesota Rules, parts 9520.0750 to 9520.0870; 
    (2) day treatment services provided under contract with the 
county board; and 
    (3) prescribed medications for persons who have been 
diagnosed as mentally ill as necessary to prevent more 
restrictive institutionalization. 
    (b) In order to contain costs, the commissioner of human 
services shall select vendors of medical care who can provide 
the most economical care consistent with high medical standards 
and shall where possible contract with organizations on a 
prepaid capitation basis to provide these services.  The 
commissioner shall consider proposals by counties and vendors 
for prepaid health plans, competitive bidding programs, block 
grants, or other vendor payment mechanisms designed to provide 
services in an economical manner or to control utilization, with 
safeguards to ensure that necessary services are provided.  
Before implementing prepaid programs in counties with a county 
operated or affiliated public teaching hospital or a hospital or 
clinic operated by the University of Minnesota, the commissioner 
shall consider the risks the prepaid program creates for the 
hospital and allow the county or hospital the opportunity to 
participate in the program in a manner that reflects the risk of 
adverse selection and the nature of the patients served by the 
hospital, provided the terms of participation in the program are 
competitive with the terms of other participants considering the 
nature of the population served.  Payment for services provided 
pursuant to this subdivision shall be as provided to medical 
assistance vendors of these services under sections 256B.02, 
subdivision 8, and 256B.0625.  The rates payable under this 
section must be calculated according to section 256B.031, 
subdivision 4. 
       (c) The commissioner of human services may reduce payments 
provided under sections 256D.01 to 256D.21 and 261.23 in order 
to remain within the amount appropriated for general assistance 
medical care, within the following restrictions. 
    For the period July 1, 1985, to December 31, 1985, 
reductions below the cost per service unit allowable under 
section 256.966, are permitted only as follows:  payments for 
inpatient and outpatient hospital care provided in response to a 
primary diagnosis of chemical dependency or mental illness may 
be reduced no more than 30 percent; payments for all other 
inpatient hospital care may be reduced no more than 20 percent.  
Reductions below the payments allowable under general assistance 
medical care for the remaining general assistance medical care 
services allowable under this subdivision may be reduced no more 
than ten percent. 
    For the period January 1, 1986 to December 31, 1986, 
reductions below the cost per service unit allowable under 
section 256.966 are permitted only as follows:  payments for 
inpatient and outpatient hospital care provided in response to a 
primary diagnosis of chemical dependency or mental illness may 
be reduced no more than 20 percent; payments for all other 
inpatient hospital care may be reduced no more than 15 percent.  
Reductions below the payments allowable under general assistance 
medical care for the remaining general assistance medical care 
services allowable under this subdivision may be reduced no more 
than five percent. 
    For the period January 1, 1987 to June 30, 1987, reductions 
below the cost per service unit allowable under section 256.966 
are permitted only as follows:  payments for inpatient and 
outpatient hospital care provided in response to a primary 
diagnosis of chemical dependency or mental illness may be 
reduced no more than 15 percent; payments for all other 
inpatient hospital care may be reduced no more than ten 
percent.  Reductions below the payments allowable under medical 
assistance for the remaining general assistance medical care 
services allowable under this subdivision may be reduced no more 
than five percent.  
     For the period July 1, 1987, to June 30, 1988, reductions 
below the cost per service unit allowable under section 256.966 
are permitted only as follows:  payments for inpatient and 
outpatient hospital care provided in response to a primary 
diagnosis of chemical dependency or mental illness may be 
reduced no more than 15 percent; payments for all other 
inpatient hospital care may be reduced no more than five percent.
Reductions below the payments allowable under medical assistance 
for the remaining general assistance medical care services 
allowable under this subdivision may be reduced no more than 
five percent. 
     For the period July 1, 1988, to June 30, 1989, reductions 
below the cost per service unit allowable under section 256.966 
are permitted only as follows:  payments for inpatient and 
outpatient hospital care provided in response to a primary 
diagnosis of chemical dependency or mental illness may be 
reduced no more than 15 percent; payments for all other 
inpatient hospital care may not be reduced.  Reductions below 
the payments allowable under medical assistance for the 
remaining general assistance medical care services allowable 
under this subdivision may be reduced no more than five percent. 
    There shall be no copayment required of any recipient of 
benefits for any services provided under this subdivision.  A 
hospital receiving a reduced payment as a result of this section 
may apply the unpaid balance toward satisfaction of the 
hospital's bad debts. 
    (d) Any county may, from its own resources, provide medical 
5 payments for which state payments are not made. 
    (e) Chemical dependency services that are reimbursed under 
Laws 1986, chapter 394, sections 8 to 20, must not be reimbursed 
under general assistance medical care. 
    (f) The maximum payment for new vendors enrolled in the 
general assistance medical care program after the base year 
shall be determined from the average usual and customary charge 
of the same vendor type enrolled in the base year. 
    Sec. 25.  Minnesota Statutes 1988, section 256G.02, 
subdivision 4, is amended to read: 
    Subd. 4.  [COUNTY OF FINANCIAL RESPONSIBILITY.] (a) "County 
of financial responsibility" has the meanings in paragraphs (b) 
to (e).  
    (b) For an applicant who resides in the state and is not in 
a facility described in subdivision 5 6, it means the county in 
which the applicant resides at the time of application.  
    (c) For an applicant who resides in a facility described in 
subdivision 5 6, it means the county in which the applicant last 
resided in nonexcluded status immediately before entering the 
facility.  
    (d) For an applicant who has not resided in this state for 
any time other than the excluded time, it means the county in 
which the applicant resides at the time of making application.  
    (e) If more than one named program is open concurrently, 
financial responsibility for social services attaches to the 
program that has the earliest date of application and has been 
open without interruption.  
    (f) Notwithstanding paragraphs (b) to (e), the county of 
financial responsibility for semi-independent living services 
provided under section 252.275, and Minnesota Rules, parts 
9525.0500 to 9525.0660, is the county of residence in 
nonexcluded status immediately before the placement into or 
request for those services. 
    Sec. 26.  Minnesota Statutes 1988, section 256G.06, is 
amended to read: 
    256G.06 [DETOXIFICATION SERVICES.] 
    The county of financial responsibility for detoxification 
services is the county where the client is physically present 
when the need for services is identified.  If that need is 
identified while the client is a resident of a chemical 
dependency facility, the provisions of section 256G.02, 
subdivision 3 4, paragraphs (b), (c), and (e) apply. 
    Sec. 27.  Minnesota Statutes 1988, section 260.125, 
subdivision 6, is repealed. 
    Sec. 28.  Minnesota Statutes 1988, section 268.10, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FILING.] (a) Claims for benefits shall be 
made in accordance with such rules as the commissioner may 
prescribe.  Each employer shall post and maintain printed 
statements of such rules in places readily accessible to 
individuals in the employer's service and shall make available 
to each such individual at the time of becoming unemployed, a 
printed statement of such rules.  Such printed statements shall 
be supplied by the commissioner to each employer without cost to 
the employer. 
     (b) Any employer upon separation of an employee from 
employment for any reason which may result in disqualification 
for benefits under section 268.09, shall furnish to such 
employee a separation notice which shall provide the employer's 
name, address, and employer account number as registered with 
the department, the employee's name and social security account 
number, the inclusive dates of employment, and the reason for 
the separation.  A copy of such separation notice shall be filed 
with the commissioner within seven days of such separation.  The 
commissioner shall require each individual filing a claim for 
benefits to establish a benefit year to furnish the reason for 
separation from all employers in the individual's base period. 
      (c) For the purpose of complying with section 268.04, 
subdivision 2, the commissioner may require all base period 
employers to provide such information as the commissioner may 
prescribe, including, but not limited to, wages paid during any 
part of the base period, whether or not such information was 
previously provided. 
     (d) Upon establishment of a benefit year, the commissioner 
shall give notice to the last employer for whom the individual 
worked and all base period employers.  The employer so notified 
shall have seven days after the mailing of the notice to file a 
protest to monetary entitlement or a protest raising an issue of 
ineligibility or disqualification. 
     (e) If, upon review of the wage information on file with 
the department, it is found that an employer failed to provide 
wage information for the claimant, the commissioner shall accept 
a claimant certification as to the wage credits earned, based 
upon the claimant's records, and issue a monetary determination 
of validity certification.  This determination may be modified 
based upon corrected information subsequently received from the 
employer or other sources.  The employer who failed to report 
the individual's wages or filed an erroneous report may be 
penalized in accordance with section 268.16 or 268.18.  In the 
absence of fraud, if a redetermination of validity of claim 
based on an employer's late corrected or erroneous report 
subsequently cancels or reduces the amount of benefits to which 
a claimant was entitled under the initial determination, the 
claimant shall not be required to make repayment to the fund of 
any benefits paid prior to such redetermination; and 
    (f) The commissioner shall determine any issue raised under 
paragraph (d) or by an employer's late report.  If an employer 
fails to file a separation notice within the time limits 
prescribed in paragraph (b), any relief from benefit charges 
provided by section 268.09, subdivision 1, clause (4) paragraph 
(e), shall apply to weeks of unemployment beginning after the 
filing of the late report or protest.  
    Sec. 29.  Minnesota Statutes 1988, section 273.124, 
subdivision 6, is amended to read: 
    Subd. 6.  [LEASEHOLD COOPERATIVES.] When one or more 
dwellings or one or more buildings which each contain several 
dwelling units is owned by a nonprofit corporation subject to 
the provisions of chapter 317 or a limited partnership which 
corporation or partnership operates the property in conjunction 
with a cooperative association, homestead treatment may be 
claimed by the cooperative association on behalf of the members 
of the cooperative for each dwelling unit occupied by a member 
of the cooperative.  The cooperative association must provide 
the assessor with the social security numbers of those members.  
To qualify for the treatment provided by this subdivision, the 
following conditions must be met:  (a) the cooperative 
association must be organized under sections 308.05 to 308.18; 
(b) the cooperative association must have a lease for occupancy 
of the property for a term of at least 20 years; (c) to the 
extent permitted under state or federal law, the cooperative 
association must have a right under a written agreement with the 
owner to purchase the property if the owner proposes to sell it; 
if the cooperative association does not purchase the property 
when it is offered for sale, the owner may not subsequently sell 
the property to another purchaser at a price lower than the 
price at which it was offered for sale to the cooperative 
association unless the cooperative association approves the 
sale; and (d) the cooperative must meet one of the following 
criteria with respect to the income of its members:  (1) a 
minimum of 75 percent of members must have incomes at or less 
than 90 percent of area median income, (2) a minimum of 40 
percent of members must have incomes at or less than 60 percent 
of area median income, or (3) a minimum of 20 percent of members 
must have incomes at or less than 50 percent of area median 
income.  For purposes of this clause, "member income" shall mean 
the income of a member existing at the time the member acquires 
his or her cooperative membership, and "median income" shall 
mean the St. Paul-Minneapolis metropolitan area median income as 
determined by the United States Department of Housing and Urban 
Development; and (e) if a limited partnership owns the property, 
it must include as the managing general partner either the 
cooperative association or a nonprofit organization operating 
under the provisions of chapter 317.  Homestead treatment must 
be afforded to units occupied by members of the cooperative 
association and the units must be assessed as provided in 
subdivision 3, provided that any unit not so occupied shall be 
classified and assessed pursuant to the appropriate class.  No 
more than three acres of land may, for assessment purposes, be 
included with each dwelling unit that qualifies for homestead 
treatment under this subdivision. 
    Sec. 30.  Laws 1987, chapter 268, article 5, section 5, is 
repealed.  
    Sec. 31.  Minnesota Statutes 1988, section 297.07, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEALER MAY PROTEST; HEARING.] If, within 30 days 
after mailing of notice of the assessment, the distributor or a 
legal representative shall file a protest to said assessment and 
request a hearing thereon, the commissioner shall give notice to 
that distributor or legal representative of the time and place 
fixed for the hearing, and shall hold a hearing in conformity 
with the provisions of sections 297.01 to 297.13.  The tax due 
must be paid within 60 days after the mailing date of the 
assessment notice.  
    Sec. 32.  Minnesota Statutes 1988, section 297.35, 
subdivision 3, is amended to read: 
    Subd. 3.  If, within 30 days after mailing of notice of the 
assessment, the taxpayer or a legal representative shall file a 
protest to said assessment and request a hearing thereon, the 
commissioner shall give notice to that taxpayer or legal 
representative of the time and place fixed for the hearing, and 
shall hold a hearing on such protest.  Any tax due and owing 
after an assessment order has been issued to the distributor or 
legal representative of such distributor shall be paid within 60 
days.  Any such assessment made by the commissioner shall be 
prima facie correct and valid, and the taxpayer shall have the 
burden of establishing its incorrectness or invalidity in any 
action or proceeding in respect thereto. 
    Sec. 33.  Minnesota Statutes 1988, section 326.01, 
subdivision 21, is repealed. 
    Sec. 34.  Minnesota Statutes 1988, section 340A.414, 
subdivision 6, is amended to read: 
    Subd. 6.  [PERMIT FEES.] The annual fee for issuance of a 
permit under this section is $150.  The governing body of a city 
or county where the establishment is located may impose an 
addition of additional fee of not more than $300. 
    Sec. 35.  Minnesota Statutes 1988, section 349.213, 
subdivision 2, is amended to read: 
    Subd. 2.  [LOCAL APPROVAL.] Before issuing or renewing an 
organization license, the board must notify the city council of 
the statutory or home rule city in which the organization's 
premises are located or, if the premises are located outside a 
city, by the county board of the county and the town board of 
the town where the premises are located.  If the city council or 
county board adopts a resolution disapproving the license and so 
informs the board within 60 days of receiving notice of the 
license, the license may not be issued or renewed. 
    Sec. 36.  Minnesota Statutes 1988, section 362A.08, is 
repealed. 
    Sec. 37.  Minnesota Statutes 1988, section 363.06, 
subdivision 4, is amended to read: 
    Subd. 4.  [INQUIRY INTO CHARGE.] (1) Consistent with clause 
(7), the commissioner shall promptly inquire into the truth of 
the allegations of the charge.  The commissioner shall make an 
immediate inquiry when a charge alleges actual or threatened 
physical violence.  The commissioner shall also make an 
immediate inquiry when it appears that a charge is frivolous or 
without merit and shall dismiss those charges. 
     The commissioner shall give priority to investigating and 
processing those charges, in the order below, which the 
commissioner determines have the following characteristics:  
     (a) there is evidence of irreparable harm if immediate 
action is not taken; 
     (b) there is evidence that the respondent has intentionally 
engaged in a reprisal; 
     (c) a significant number of recent charges have been filed 
against the respondent; 
     (d) the respondent is a government entity; 
     (e) there is potential for broadly promoting the policies 
of this chapter; or 
     (f) the charge is supported by substantial and credible 
documentation, witnesses, or other evidence.  
     The commissioner shall inform charging parties of these 
priorities and shall tell each party if their charge is a 
priority case or not.  
     On other charges the commissioner shall make a 
determination within 12 months after the charge was filed as to 
whether or not there is probable cause to credit the allegation 
of unfair discriminatory practices, and 
     (2) If the commissioner determines after investigation that 
no probable cause exists to credit the allegations of the unfair 
discriminatory practice, the commissioner shall, within ten days 
of the determination, serve upon the charging party and 
respondent written notice of the determination.  Within ten days 
after receipt of notice, the charging party may request in 
writing, on forms prepared by the department, that the 
commissioner reconsider the determination.  The request shall 
contain a brief statement of the reasons for and new evidence in 
support of the request for reconsideration.  At the time of 
submission of the request to the commissioner, the charging 
party shall deliver or mail to the respondent a copy of the 
request for reconsideration.  The commissioner shall either 
reaffirm or reverse the determination of no probable cause 
within 20 days after receipt of the request for reconsideration, 
and shall within ten days notify in writing the charging party 
and respondent of the decision to reaffirm or reverse. 
     A decision by the commissioner that no probable cause 
exists to credit the allegations of an unfair discriminatory 
practice shall not be appealed to the court of appeals pursuant 
to section 363.072 or sections 14.63 to 14.68. 
     (3) If the commissioner determines after investigation that 
probable cause exists to credit the allegations of unfair 
discriminatory practices, the commissioner shall serve on the 
respondent and the respondent's attorney if the respondent is 
represented by counsel, by first class mail, a notice setting 
forth a short plain written statement of the alleged facts which 
support the finding of probable cause and an enumeration of the 
provisions of law allegedly violated.  If the commissioner 
determines that attempts to eliminate the alleged unfair 
practices through conciliation pursuant to subdivision 5 have 
been or would be unsuccessful or unproductive, the commissioner 
shall issue a complaint and serve on the respondent, by 
registered or certified mail, a written notice of hearing 
together with a copy of the complaint, requiring the respondent 
to answer the allegations of the complaint at a hearing before 
an administrative law judge at a time and place specified in the 
notice, not less than ten days after service of said complaint.  
A copy of the notice shall be furnished to the charging party 
and the attorney general. 
     (4) If, at any time after the filing of a charge, the 
commissioner has reason to believe that a respondent has engaged 
in any unfair discriminatory practice, the commissioner may file 
a petition in the district court in a county in which the 
subject of the complaint occurs, or in a county in which a 
respondent resides or transacts business, seeking appropriate 
temporary relief against the respondent, pending final 
determination of proceedings under this chapter, including an 
order or decree restraining the respondent from doing or 
procuring an act tending to render ineffectual an order the 
commissioner may enter with respect to the complaint.  The court 
shall have power to grant temporary relief or a restraining 
order as it deems just and proper, but no relief or order 
extending beyond ten days shall be granted except by consent of 
the respondent or after hearing upon notice to the respondent 
and a finding by the court that there is reasonable cause to 
believe that the respondent has engaged in a discriminatory 
practice.  Except as modified by this section, the Minnesota 
rules of civil procedure shall apply to an application, and the 
district court shall have authority to grant or deny the relief 
sought on conditions as it deems just and equitable.  All 
hearings under this section shall be given precedence as nearly 
as practicable over all other pending civil actions. 
     (5) If a lessor, after engaging in a discriminatory 
practice defined in section 363.03, subdivision 2, clause 
(1)(a), leases or rents a dwelling unit to a person who has no 
knowledge of the practice or of the existence of a charge with 
respect to the practice, the lessor shall be liable for actual 
damages sustained by a person by reason of a final order as 
provided in this section requiring the person to be evicted from 
the dwelling unit. 
     (6) In any complaint issued under this section, the 
commissioner may seek relief for a class of individuals affected 
by an unfair discriminatory practice occurring on or after a 
date 300 days one year prior to the filing of the charge from 
which the complaint originates. 
    (7) The commissioner may adopt policies to determine which 
charges are processed and the order in which charges are 
processed based on their particular social or legal 
significance, administrative convenience, difficulty of 
resolution, or other standard consistent with the provisions of 
this chapter. 
    (8) The chief administrative law judge shall adopt policies 
to provide sanctions for intentional and frivolous delay caused 
by any charging party or respondent in an investigation, 
hearing, or any other aspect of proceedings before the 
department under this chapter. 
    Sec. 38.  Minnesota Statutes 1988, section 473.845, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT.] The metropolitan landfill 
contingency action fund is created as an account in the state 
treasury.  The fund consists of revenue deposited in the fund 
under section 473.843, subdivision 2, clause (b); amounts 
recovered under subdivision 6 7; and interest earned on 
investment of money in the fund.  
    Sec. 39.  Minnesota Statutes 1988, section 480A.02, 
subdivision 7, is amended to read: 
    Subd. 7.  [COMPENSATION; TRAVEL EXPENSES.] The salary of a 
judge of the court of appeals shall be as provided by 
section 15A.083 15A.082.  Travel expenses shall be paid by the 
state in the same manner and amount as provided for judges of 
the district court in section 484.54.  
    Sec. 40.  Minnesota Statutes 1988, section 485.018, 
subdivision 2, is amended to read: 
    Subd. 2.  [SET BY BOARD.] The county board of each of the 
counties specified in subdivision 1 annually shall set by 
resolution the salary of the court administrator of district 
court which shall be paid to the court administrator of district 
court at such intervals as the board shall determine but not 
less often than once each month.  At the January meeting prior 
to the first date on which applicants may file for the office of 
court administrator of district court the board shall set by 
resolution the minimum salary to be paid the court administrator 
of district court for the term next following.  In the event a 
vacancy occurs in the office of the court administrator of 
district court the board may set the annual salary for the 
remainder of the calendar year at an amount less than was set 
for that year.  The board in any case specified in this 
subdivision may not set the annual salary at an amount less than 
the minimums provided in subdivision 1 but it may set the salary 
in excess of such minimums.  The salary of the court 
administrator of district court shall not be reduced during the 
term for which the court administrator is elected or appointed. 
    In the event that duties are assigned to the court 
administrator of district court which are in addition to the 
court administrator's duties as court administrator, additional 
compensation may be provided for the additional duties.  The 
county board by resolution shall determine the additional 
compensation which shall be paid and specify the duties for 
which the additional compensation is to be paid. 
    Sec. 41.  Minnesota Statutes 1988, section 515A.3-115, is 
amended to read: 
    515A.3-115 [LIEN FOR ASSESSMENTS.] 
    (a) The association has a lien on a unit for any assessment 
levied against that unit from the time the assessment becomes 
payable.  The association's lien may be foreclosed as provided 
by the laws of this state as if it were a lien under a mortgage 
containing a power of sale but the association shall give 
reasonable notice of its action to all lienholders of the unit 
whose interest would be affected.  The rights of the parties 
shall be the same as those provided by law except that the 
period of redemption for unit owners shall be six months from 
the date of sale.  Unless the declaration otherwise provides, 
fees, charges, late charges, and interest charges pursuant to 
section 515A.3-102(8), (9) and (12) (11) are enforceable as 
assessments under this section.  
    (b) A lien under this section is prior to all other liens 
and encumbrances on a unit except (1) liens and encumbrances 
recorded before the recordation of the declaration, (2) any 
recorded mortgage on the unit securing a first mortgage holder, 
and (3) liens for real estate taxes and other governmental 
assessments or charges against the unit.  This subsection does 
not affect the priority of mechanics' or material suppliers' 
liens. 
    (c) Recording of the declaration constitutes record notice 
and perfection of the lien, and no further recordation of any 
claim of lien for assessment under this section is required. 
    (d) Proceedings to enforce an assessment must be instituted 
within three years after the last installment of the assessment 
becomes payable.  
    (e) Unit owners at the time an assessment is payable are 
personally liable to the association for payment of the 
assessments.  
    (f) A foreclosure sale, judgment or decree in any action, 
proceeding or suit brought under this section shall include 
costs and reasonable attorney's fees for the prevailing party. 
    (g) The association shall furnish to a unit owner or the 
owner's authorized agent upon written request of the unit owner 
or the authorized agent a recordable statement setting forth the 
amount of unpaid assessments currently levied against the 
owner's unit.  The statement shall be furnished within ten 
business days after receipt of the request and is binding on the 
association and every unit owner. 
    Sec. 42.  Minnesota Statutes 1988, section 525.94, 
subdivision 3, is amended to read: 
    Subd. 3.  [DOCUMENTATION.] Notification under subdivision 1 
2, as well as any identified contradiction to organ donation, 
must be documented in the patient's medical record, which must 
include the name of the person notified and the person's 
relationship to the decedent. 
    Sec. 43.  Minnesota Statutes 1988, section 548.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [JUDGMENT CREDITOR'S AFFIDAVIT.] No judgment, 
except for taxes, shall be docketed until the judgment creditor, 
or the creditor's agent or attorney, has filed with the court 
administrator an affidavit, stating the full name, occupation, 
place of residence, and post office address of the judgment 
debtor, to the best of affiant's information and belief.  If the 
residence is within an incorporated place having more than 5,000 
inhabitants, the street number of both the judgment creditor's 
debtor's place of residence and place of business, if the 
creditor debtor has one, shall be stated.  
    Sec. 44.  Minnesota Statutes 1988, section 604.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  When two or more persons are jointly 
liable, contributions to awards shall be in proportion to the 
percentage of fault attributable to each, except that each is 
jointly and severally liable for the whole award.  Except in 
cases where liability arises under chapters 18B - pesticide 
control, 115 - water pollution control, 115A - waste management, 
115B - environmental response and liability, 115C - leaking 
underground storage tanks, and 299E 299J - pipeline safety, 
public nuisance law for damage to the environment or the public 
health, any other environmental or public health law, or any 
environmental or public health ordinance or program of a 
municipality as defined in section 466.01, a person whose fault 
is 15 percent or less is liable for a percentage of the whole 
award no greater than four times the percentage of fault, 
including any amount reallocated to that person under 
subdivision 2. 
    If the state or a municipality as defined in section 466.01 
is jointly liable, and its fault is less than 35 percent, it is 
jointly and severally liable for a percentage of the whole award 
no greater than twice the amount of fault, including any amount 
reallocated to the state or municipality under subdivision 2. 
    Sec. 45.  Minnesota Statutes 1988, section 609.506, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MISDEMEANOR.] Whoever with intent to 
obstruct justice gives a fictitious name other than a nickname, 
or gives a false date of birth, or false or fraudulently altered 
identification card to a peace officer, as defined in section 
626.84, subdivision 2 1, paragraph (c), when that officer makes 
inquiries incident to a lawful investigatory stop or lawful 
arrest, or inquiries incident to executing any other duty 
imposed by law, is guilty of a misdemeanor. 
    Sec. 46.  Minnesota Statutes 1988, section 611A.53, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERALLY.] Except as provided in 
subdivisions 1a and 2, the following persons shall be entitled 
to reparations upon a showing by a preponderance of the evidence 
that the requirements for reparations have been met: 
    (a) a victim who has incurred economic loss; 
    (b) a dependent who has incurred economic loss; 
    (c) the estate of a deceased victim if the estate has 
incurred economic loss; 
    (d) any other person who has incurred economic loss by 
purchasing any of the products, services, and accommodations 
described in section 611A.52, clause (7) subdivision 8, for a 
victim; 
    (e) the guardian, guardian ad litem, conservator or 
authorized agent of any of these persons.  
     Sec. 47.  Laws 1988, chapter 640, section 5, is amended to 
read: 
    Sec. 5.  [TAX-FORFEITED LAND SALE; MCLEOD COUNTY.] 
    Notwithstanding Minnesota Statutes, section 282.018, McLeod 
county may sell in accordance with the other provisions of 
Minnesota Statutes, chapter 282, the three tax-forfeited parcels 
described as follows: 
    (1) Beginning at the Northwest corner of Lot "A" in 
Schillings Addition to Lake Addie Townsite, running thence North 
65' thence East 206.09', thence South 20', thence East by South 
119', thence South 40', thence West 118', thence North 10', 
thence West 206.09' to the point of beginning, and beginning at 
a point 65' North of the Northwest corner of Lot "A" in 
Schillings Addition to Lake Addie Townsite according to the plat 
thereof thence running North to the right-of-way of the Chicago, 
Milwaukee and St. Paul Railroad Company, thence Northeasterly 
along said railway right-of-way 341.6', thence South to a point 
40' North of the Northeast corner of Lot "M" in Schillings 
Addition to Lake Addie Townsite, thence Northwesterly 119', 
thence North 20', thence West to the point of beginning; and, 
beginning at a point in the center of Buffalo Creek 50' North of 
the Northeast corner of Lot "M" in Schillings Addition to Lake 
Addie Townsite, according to the plat thereof on file and of 
record in the office of the county recorder of McLeod county, 
thence North 254' to the South line of right-of-way of the 
Chicago, Milwaukee and St. Paul Railroad Company, thence South 
34 84 degrees 32 minutes East along said right-of-way a distance 
of 35' 85', thence South 261' to the center of Buffalo Creek, 
thence Northwesterly 85.1' to the place of beginning, all of the 
above being and lying in the Southeast Quarter of Southwest 
Quarter of Section 29, Township 115 North, Range 29 West. 
    (2) Beginning at a point in the center of Buffalo Creek 
442.09' East and 50' North of the Northeast Corner of Block 1 in 
Lake Addie Townsite, according to the plat thereof on file and 
of record in the office of the county recorder of the county of 
McLeod, Minnesota thence North to the South Line of the 
right-of-way of the Chicago, Milwaukee and St. Paul Railroad 
Company thence Southeasterly along said right-of-way to a point 
360' due East of the West line of this tract, thence South to 
the center of Buffalo Creek, thence Westerly along the center of 
Buffalo Creek, to the point of beginning, being and lying in the 
Southeast Quarter of the Southwest Quarter and the Southwest 
Quarter of the Southeast Quarter of Section 29, Township 115 
North, Range 29 West. 
    (3) United States Government Lot 1 (0.90 ac.) in Section 
14, Township 117 North, Range 27 West. 
    The parcels are all inaccessible and are not necessary for 
public access to the adjacent public waters. 
    Sec. 48.  Laws 1988, chapter 719, article 12, section 29, 
is amended to read: 
    Sec. 29.  [TRANSITION RULES.] 
    (a) The provisions of sections 3, 6, 10, and 14 16 do not 
apply to proposed tax increment financing districts for which 
the authority called for a public hearing in a resolution dated 
March 23, 1987, and for which a public hearing was held on April 
28, 1987.  The provisions of Minnesota Statutes 1987 Supplement, 
sections 469.174, subdivision 10, and 469.176, subdivision 4, 
apply to such districts. 
    (b) The provisions of sections 3, 6, 10, and 14 16 do not 
apply to candidate sites in the old highway 8 corridor tax 
increment project area, identified in the old highway 8 corridor 
plan as approved by an authority on October 14, 1986, if the 
requests for certification of the districts are filed with the 
county before January 1, 1998.  The provisions of Minnesota 
Statutes 1987 Supplement, sections 469.174, subdivision 10, and 
469.176, subdivision 4, apply to such districts. 
    (c) The provisions of section 14 16, subdivision 4c, do not 
apply to an economic development district located in a 
development district approved on November 9, 1987, provided the 
request for certification of the tax increment district is 
submitted to the county by September 30, 1988.  
    Sec. 49.  Laws 1965, chapter 267, section 1, is repealed. 
    Sec. 50.  Laws 1971, chapter 830, section 7, is repealed.  
    Sec. 51.  Laws 1976, chapters 2, section 62, and 173, 
section 53, are repealed.  
    Sec. 52.  Laws 1976, chapter 134, section 2, is repealed. 
    Sec. 53.  Laws 1976, chapter 134, section 79, is amended to 
read: 
    Sec. 79.  [REPEALS.] Minnesota Statutes 1974, sections 
3.922, subdivision 3; 10A.02, subdivision 6; 16.823, subdivision 
5; 43.03, subdivision 3; 121.02, subdivision 2; 136.16; 136.61, 
subdivisions 2 and 4; 136A.02, subdivision 4; 175.006, 
subdivision 3; 216A.03, subdivision 2; 238.04, subdivisions 4 
and 5; 241.045, subdivision 5; 271.01, subdivision 3; 299B.05, 
subdivision 2; 352.03, subdivision 3; 363.04, subdivision 6; 
462A.04, subdivisions 2, 3 and 5, are repealed. 
    Sec. 54.  Laws 1976, chapter 163, section 10, is repealed. 
    Sec. 55.  Laws 1977, chapter 35, section 8, is repealed.  
    Sec. 56.  Minnesota Statutes 1988, section 473.605, 
subdivision 2, is amended to read: 
    Subd. 2.  Each commission member shall be paid a per diem 
compensation of $50 for each meeting of the commission, one of 
its committees, and attendance and participation at a meeting or 
hearing as a representative of the commission pursuant to state 
law or rule.  Members shall be reimbursed for all actual and 
necessary expenses incurred in the performance of their duties 
in the same manner and amount as state employees.  The chair 
shall receive compensation as determined by the commission a 
salary as prescribed in section 15A.081, subdivision 7, and 
shall be reimbursed for reasonable expenses to the same extent 
as a member.  The mayors and members of the city councils of 
Minneapolis and St. Paul shall not be eligible for per diem 
compensation.  The annual budget of the commission shall provide 
as a separate account anticipated expenditures for per diem, 
travel and associated expenses for the chair and members, and 
compensation or reimbursement shall be made to the chair and 
members only when budgeted. 
    Sec. 57.  Laws 1978, chapter 496, section 1, is repealed. 
    Sec. 58.  Laws 1978, chapter 706, section 31, is repealed. 
    Sec. 59.  Laws 1979, chapter 48, section 2, is repealed. 
    Sec. 60.  Laws 1979, chapter 184, section 3, is repealed. 
    Sec. 61.  Laws 1981, chapter 271, section 1, is repealed. 
    Sec. 62.  Laws 1982, chapter 514, section 15, is repealed. 
    Sec. 63.  Laws 1983, chapter 242, section 1, is repealed. 
    Sec. 64.  Laws 1983, chapter 247, section 38, is repealed. 
    Sec. 65.  Laws 1983, chapter 289, section 4, is repealed. 
    Sec. 66.  Laws 1983, chapter 290, sections 2 and 3, are 
repealed. 
    Sec. 67.  Laws 1983, chapter 299, section 26, is repealed.  
    Sec. 68.  Laws 1983, chapter 303, sections 21 and 22, are 
repealed. 
    Sec. 69.  Laws 1984, chapter 654, article 2, section 117, 
is repealed.  
    Sec. 70.  Laws 1986, chapter 312, section 1, is repealed. 
    Sec. 71.  Laws 1986, chapter 400, section 43, is repealed. 
    Sec. 72.  Laws 1986, chapter 452, section 17, is repealed. 
    Sec. 73.  Laws 1986, First Special Session chapter 3, 
article 1, section 74, is repealed. 
    Sec. 74.  Laws 1986, First Special Session chapter 3, 
article 1, section 79, is repealed. 
    Sec. 75.  Laws 1987, chapter 384, article 2, section 25, is 
repealed.  
    Sec. 76.  Laws 1987, chapter 385, section 7, is repealed. 
    Sec. 77.  Laws 1987, chapter 403, article 5, section 1, is 
repealed.  
    Sec. 78.  Laws 1987, chapter 404, section 138, is repealed. 
<$USE F1 Format>

                               ARTICLE 2 

                     OBSOLETE REFERENCE CORRECTIONS 
    Section 1.  [INSTRUCTION TO REVISOR.] 
    In each section of Minnesota Statutes referred to in column 
A, the revisor of statutes shall delete the reference in column 
B and insert the reference in column C. 
Column A               Column B                Column C
13.551                 458.196                 469.065
13.75, subd. 2         179A.04, subd. 3; and   179A.16
                       179A.15
13.89, subd. 1         245.781 to 245.812      245A.01 to 245A.16
17.72                  18A.21 to 18A.45        chapter 18B
40.072, subd. 4        106A.205                106A.202, subd. 5
41A.02, subd. 17       474.02, subds. 1 to 1f  469.153, subd. 2
41A.02, subd. 17       474.03, subd. 4         469.155, subd. 4
41A.036, subd. 2       273.1312, subd. 4       469.168
44A.08, subd. 1        44A.07                  44A.023
51A.19, subd. 9        51A.39                  51A.385
62A.22                 176.012                 176.041, subd. 1a
62A.48, subd. 7        62A.58                  62A.56
67A.06                 300.082                 300.083
97B.035, subd. 1       97B.315                 97B.106
106A.215, subd. 5      106A.205                106A.202, subd. 5
115B.02, subd. 15      18A.21, subd. 25        18B.01, subd. 18
115B.17, subd. 8       18A.37                  18B.15
115C.08, subd. 3       296.13                  239.78
116.64, subd. 3        473.488                 473.448
116D.04, subd. 1a      458C.01 to 458C.23      469.090 to 469.108
116J.27, subd. 4b      462.421                 469.002
120.17, subd. 1        120.10                  120.101
120.67                 120.10                  120.101
122.22, subd. 4        123.32, subd. 1a        201.014
122.34                 120.10, subd. 2         120.101
122.48                 120.10, subd. 2         120.101
122.87, subd. 4        126.66                  126.666
123.42                 123.32                  123.33
123.76                 120.10, subd. 2         120.101
123.77, subd. 3        120.10, subd. 2         120.101, subd. 4
123.932, subd. 3       120.10                  120.101
124.17, subd. 2        120.10                  120.101
124.272, subd. 3       126.66                  126.666
124A.02, subd. 22      120.10                  120.101
126.72, subd. 2        126.66, subd. 6         126.666, subd. 4
127.19                 120.10                  120.101
128A.05, subd. 3       120.10                  120.101
128A.05, subd. 3       120.12                  120.103
129.121, subd. 4       120.10                  120.101
129B.32, subd. 1       129B.33                 129B.375
129B.66, subd. 1       126.66, subd. 3         126.666, subd. 2
129B.71                129B.75                 129B.73
141.35                 120.10                  120.101
144.383                145.913                 145A.09
144.653, subd. 1       245.781 to 245.812      245A.01 to 245A.16
144.802, subd. 3       145.918                 145A.12, subd. 4 
144A.01, subd. 5       245.781 to 245.821      245A.01 to 245A.16
144A.071, subd. 2      245.781 to 245.812      245A.01 to 245A.16
144A.10, subd. 1       245.781 to 245.821      245A.01 to 245A.16
144A.46, subd. 3       14.70                   14.69
145.93, subd. 2        473.02, subd. 5         473.121, subd. 2
148B.05, subd. 1       525.612                 525.61
153.22, subd. 4        525.612                 525.61
157.14                 245.781 to 245.812      245A.01 to 245A.16
161.41, subd. 2        chapter 16              chapter 16B 
168.041, subd. 4a      14.70                   14.69
169.01, subd. 6        120.10                  120.101 
171.01, subd. 21       120.10                  120.101 
174.30, subd. 1        245.781 to 245.812      245A.01 to 245A.16
176.011, subd. 21      176.012                 176.041, subd. 1a 
205.02, subd. 2        205.12                  205.121
216C.27, subd. 6       462.421, subd. 2        469.002
237.69, subds. 1,      237.72                  237.711
7, and 8
245.73, subd. 1        245.781 to 245.813      245A.01 to 245A.16
245.85                 245.87                  245.873
245.73, subd. 2        245.781 to 245.812      245A.01 to 245A.16
252.24, subd. 1        245.781 to 245.813      245A.01 to 245A.16
252.275, subd. 1       245.781 to 245.812      245A.01 to 245A.16
252.28, subd. 3        245.812                 245A.11
252.41, subds. 3       245.781 to 245.812      245A.01 to 245A.16
and 9
252.43                 245.781 to 245.812      245A.01 to 245A.16
253B.11, subd. 2       256D.18, subd. 4        256G.09
254B.03, subd. 2       245.781 to 245.812      245A.01 to 245A.16
254B.03, subd. 2       245.791                 245A.03
254B.05, subd. 1       245.781 to 245.812      245A.01 to 245A.16
254B.05, subd. 1       245.791                 245A.03
256D.05, subd. 1       256D.0505, subd. 2      256D.052
256F.05, subd. 5       145.911 to 145.922      145A.09 to 145A.13
260.015, subd. 3       245.781 to 245.812      245A.01 to 245A.16
260.185, subd. 1       245.781 to 245.812      245A.01 to 245A.16
260.251, subd. 1a      260.194, subd. 1,       260.191, subd. 1,
                       clause (b) or (c)       paragraph (b),
                                               clause (2) or (3)
268.03                 268.24                  268.231
268.04, subds. 1, 3,   268.24                  268.231
6, 10, 12, 13, and 16 
268.05, subd. 1        268.24                  268.231
268.06, subds. 1       268.24                  268.231
and 21
268.07, subd. 2        268.24                  268.231
268.08, subds. 1, 2,   268.24                  268.231
and 3 
268.09, subd. 2        268.24                  268.231
268.10, subds. 2       268.24                  268.231
and 7 
268.11                 268.24                  268.231
268.12, subds. 4, 5,   268.24                  268.231
6, 9, 11, 12, and 13 
268.13, subds. 1, 3,   268.24                  268.231
and 4
268.14, subds. 1       268.24                  268.231
and 2
268.15, subds. 1       268.24                  268.231
and 3 
268.16, subds. 2, 4,   268.24                  268.231
and 7
268.161, subds. 3, 4,  268.24                  268.231
and 9
268.17                 268.24                  268.231
268.18, subds. 1, 2,   268.24                  268.231
5, and 6
268.20                 268.24                  268.231
268.21                 268.24                  268.231
268.38, subd. 12       245.781 to 245.812      245A.01 to 245A.16
290.092, subd. 6       273.1314, subd. 9       469.171 
290.50, subd. 1        273.1314, subd. 10a     469.171, subd. 10
290.53, subd. 1        290.531                 271.061
297A.25, subd. 30      120.10, subd. 2         120.101, subd. 4
297A.39, subd. 1       297A.391                271.061
317.65, subd. 6        245.781 to 245.812      245A.01 to 245A.16
326.57, subd. 2        326.66                  326.65
326.61, subds. 1, 2,   326.66                  326.65
and 4
326.63                 326.66                  326.65
326.64                 326.66                  326.65
326.65                 326.66                  326.65
340A.702               340A.313                340A.312
354B.05, subd. 2       354B.03                 354B.04
361.121, subd. 2a      14.70                   14.69 
375.471                106A.201, subd. 3       106A.212, subd. 2
402.03                 145.913, subd. 3        145A.10, subd. 10
458.1931               458.09 to 458.1991      469.048 to 469.068
462.352, subds. 5,     472B.03 to 472B.07      469.135 to 469.141
7, 9, 10, 15, and 17 
462.357, subd. 6a      245.782, subd. 2        245A.02, subd. 11
462.358, subd. 2a      472B.03 to 472B.07      469.135 to 469.141
462A.05, subd. 28      462.415 to 462.705      469.001 to 469.047
462A.221, subd. 3      462.425                 469.003
462C.02, subd. 9       458.191                 469.058
462C.12, subd. 2       458C.01 to 458C.23      469.090 to 469.108
469.033, subd. 6       462.445, subd. 4        469.012, subd. 1
469.071, subd. 4       459.192, subd. 2        469.059, subd. 2
469.0722, subd. 8      273.73, subd. 8         469.174, subd. 8
514.950, subd. 2       18A.21                  18B.01
626.556, subd. 2       245.781 to 245.812      245A.01 to 245A.16
626.556, subd. 10d     245.781 to 245.812      245A.01 to 245A.16
626.557, subd. 2       245.781 to 245.812      245A.01 to 245A.16
626.557, subd. 2       245.781 to 245.813      245A.01 to 245A.16
626.557, subd. 10a     245.781 to 245.812      245A.01 to 245A.16
626.843, subd. 3       626.849                 626.855
626.88, subd. 1        326.331                 326.3381
    Sec. 2.  Minnesota Statutes 1988, section 13.46, 
subdivision 2, is amended to read: 
    Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
a statute specifically provides a different classification, data 
on individuals collected, maintained, used, or disseminated by 
the welfare system is private data on individuals, and shall not 
be disclosed except:  
     (1) pursuant to section 13.05; 
     (2) pursuant to court order; 
     (3) pursuant to a statute specifically authorizing access 
to the private data; 
     (4) to an agent of the welfare system, including a law 
enforcement person, attorney, or investigator acting for it in 
the investigation, prosecution, criminal or civil proceeding 
relating to the administration of a program; 
     (5) to personnel of the welfare system who require the data 
to determine eligibility, amount of assistance, and the need to 
provide services of additional programs to the individual; 
     (6) to administer federal funds or programs; 
     (7) between personnel of the welfare system working in the 
same program; 
     (8) the amounts of cash public assistance and relief paid 
to welfare recipients in this state, including their names and 
social security numbers, upon request by the department of 
revenue to administer the property tax refund law, supplemental 
housing allowance, and the income tax; 
    (9) to the Minnesota department of jobs and training for 
the purpose of monitoring the eligibility of the data subject 
for unemployment compensation, for any employment or training 
program administered, supervised, or certified by that agency, 
or for the purpose of administering any rehabilitation program, 
whether alone or in conjunction with the welfare system; 
    (10) to appropriate parties in connection with an emergency 
if knowledge of the information is necessary to protect the 
health or safety of the individual or other individuals or 
persons; or 
    (11) data maintained by residential facilities as defined 
in section 245A.02, subdivision 6, 245A.02 may be disclosed to 
the protection and advocacy system established in this state 
pursuant to Part C of Public Law Number 98-527 to protect the 
legal and human rights of persons with mental retardation or 
other related conditions who live in residential facilities for 
these persons if the protection and advocacy system receives a 
complaint by or on behalf of that person and the person does not 
have a legal guardian or the state or a designee of the state is 
the legal guardian of the person. 
    (b) Mental health data shall be treated as provided in 
subdivisions 7, 8, and 9, but is not subject to the access 
provisions of subdivision 10, paragraph (b). 
    Sec. 3.  Minnesota Statutes 1988, section 13.75, 
subdivision 2, is amended to read: 
    Subd. 2.  [MEDIATION DATA.] All data received or maintained 
by the commissioner or staff of the bureau of mediation services 
during the course of providing mediation services to the parties 
to a labor dispute under the provisions of chapter 179 are 
classified as protected nonpublic data with regard to data not 
on individuals, pursuant to section 13.02, subdivision 13, and 
as confidential data on individuals pursuant to section 13.02, 
subdivision 3, except to the extent the commissioner of the 
bureau of mediation services determines such data are necessary 
to fulfill the requirements of sections 179A.04, subdivision 3, 
and 179A.15 section 179A.16, or to identify the general nature 
of or parties to a labor dispute. 
    Sec. 4.  Minnesota Statutes 1988, section 16A.26, is 
amended to read: 
    16A.26 [ONE DEPOSITORY ACCOUNT FOR EACH TAX.] 
    Notwithstanding sections 290.361, 297.13, 298.17, 298.282, 
298.39, 298.396, 297C.02 to 297C.08 and similar laws to the 
contrary relating to the depositing, disposition, or 
apportionment of tax receipts, the commissioner may use one 
depository account for each tax.  To do so, there must be enough 
information to identify and dispose of or apportion the tax 
under law.  The commissioner shall ask the appropriate officials 
for the transfers and necessary certifications.  The 
commissioner may issue directives to carry out this section. 
    Sec. 5.  Minnesota Statutes 1988, section 45.028, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] When a person, including any 
nonresident of this state, engages in conduct prohibited or made 
actionable by chapters 45 to 83, 155A, 309, and 332, or any rule 
or order under those chapters, and the person has not filed a 
consent to service of process under chapters 45 to 83, 155A, 
309, and 332, that conduct is equivalent to an appointment of 
the commissioner as the person's attorney to receive service of 
process in any noncriminal suit, action, or proceeding against 
the person which is based on that conduct and is brought under 
chapters 45 to 83, 155A, 309, and 332, or any rule or order 
under those chapters. 
    Sec. 6.  Minnesota Statutes 1988, section 105.81, is 
amended to read: 
    105.81 [PETITION; BOND; INVESTIGATION; REPORT; HEARING; 
ORDER.] 
    To conserve and make more adequate use of our water 
resources, any person, public or municipal corporation, 
governmental subdivision, the state or any of its departments or 
agencies, the commissioner of natural resources, and the United 
States or any of its agencies, may petition for the installation 
of dams or other control works in drainage ditch systems to 
impound or divert waters for beneficial use.  The petition must 
be directed to the county board when a drainage system is wholly 
within one county and to the joint county board when the system 
affects two or more counties.  The petition must contain the 
location of the installation, plans, and specifications for the 
proposed structure and a map of the areas likely to be affected 
by the impoundment or diversion.  The petitioner shall agree to 
be responsible for the cost of installation and construction of 
the structure.  Upon filing the petition, the petitioners shall 
file a bond as provided in sections 106A.205 and 106A.211 
section 106A.202, subdivisions 5 and 6.  No bond is required if 
the petition is filed by the state, any of its departments or 
agencies, the commissioner of natural resources, the United 
States or any of its agencies, and cities.  The petition must 
also be accompanied by a permit from the commissioner of natural 
resources as required in sections 105.41 and 105.42.  
     On receipt of the petition, bond, and permit, if required, 
the board or court shall appoint an engineer to investigate the 
effect of the proposed installation and file a report of 
findings.  Upon filing of the engineer's report, notice must be 
given and a public hearing held as provided in section 
106A.261.  If at this hearing it appears from the engineer's 
report and other evidence presented that the installation will 
be of a public or private benefit and that it will not impair 
the utility of the ditch or deprive affected land owners of its 
benefit, the board or court shall issue a permit authorizing its 
installation.  Before installing or constructing an impoundment 
or diversion, the petitioner shall obtain rights-of-way and 
flowage easements from owners of land to be affected by it. 
     The order of the court modifying the ditch system must 
provide that construction and later maintenance and repairs of 
the ditch modification must be done by the petitioner without 
cost to the owners of lands and properties previously within the 
drainage system. 
    Sec. 7.  Minnesota Statutes 1988, section 122.23, 
subdivision 18, is amended to read: 
    Subd. 18.  (a) If no board is provided for under the 
foregoing provision, upon receipt of the assigned identification 
number, the county auditor shall determine a date, not less than 
20 nor more than 60 days from the date of the receipt of the 
assigned identification number, upon which date shall be held a 
special election in the district for the purpose of electing a 
board of six members for terms as follows:  two until the July 1 
one year after the effective date of the consolidation, two 
until the expiration of one year from said July 1, and two until 
the expiration of two years from said July 1, to hold office 
until a successor is elected and qualifies according to 
provisions of law governing the election of board members in 
independent districts.  If the resolution or petition for 
consolidation pursuant to subdivision 2 proposed that the board 
of the newly created district consists of seven members, then 
seven members shall be elected at this election for the terms 
provided in this clause except that three members shall hold 
office until the expiration of two years from said July 1.  If 
the resolution or petition for consolidation pursuant to 
subdivision 2 proposed the establishment of separate election 
districts, these members shall be elected from separate election 
districts according to the provisions of that resolution or 
petition and of section 123.32 chapter 205A. 
    (b) The county auditor shall give ten days' posted notice 
of election in the area in which the election is to be held and 
also if there be a newspaper published in the proposed new 
district, one weeks' published notice shall be given.  The 
notice shall specify the time, place and purpose of the election.
    (c) The county may pay the election judges not to exceed $1 
per hour for their services. 
    (d) Any person desiring to be a candidate for a school 
election shall file an application with the county auditor to 
have the applicant's name placed on the ballot for such office, 
specifying the term for which the application is made.  The 
application shall be filed not less than 12 days before the 
election. 
    (e) The county auditor shall prepare, at the expense of the 
county, necessary ballots for the election of officers, placing 
thereon the names of the proposed candidates for each office.  
The ballots shall be marked and signed as official ballots and 
shall be used exclusively at the election.  The county auditor 
shall determine the number of voting precincts and the 
boundaries of each.  The county auditor shall determine the 
location of polling places and the hours the polls shall be open 
and shall appoint three election judges for each polling place 
who shall act as clerks of election.  Election judges shall 
certify ballots and results to the county auditor for tabulation 
and canvass. 
    (f)  After making a canvass and tabulation, the county 
auditor shall issue a certificate of election to the candidate 
for each office who received the largest number of votes cast 
for the office.  The county auditor shall deliver such 
certificate to the person entitled thereto by certified mail, 
and each person so certified shall file an acceptance and oath 
of office with the county auditor within 30 days of the date of 
mailing of the certificate.  A person who fails to qualify prior 
to the time specified shall be deemed to have refused to serve, 
but such filing may be made at any time before action to fill 
vacancy has been taken. 
    (g) The board of each district included in the new enlarged 
district shall continue to maintain school therein until the 
effective date of the consolidation.  Such boards shall have 
power and authority only to make such contracts, to do such 
things as are necessary to maintain properly the schools for the 
period prior to that date, and to certify to the county auditor 
according to levy limitations applicable to the component 
districts the taxes collectible in the calendar year when the 
consolidation becomes effective. 
    (h) It shall be the immediate duty of the newly elected 
board of the new enlarged district, when the members thereof 
have qualified and the board has been organized, to plan for the 
maintenance of the school or schools of the new district for the 
next school year, to enter into the necessary negotiations and 
contracts for the employment of personnel, purchase of equipment 
and supplies, and other acquisition and betterment purposes, 
when authorized by the voters to issue bonds under the 
provisions of chapter 475; and on the effective date of the 
consolidation to assume the full duties of the care, management 
and control of the new enlarged district.  The board of the new 
enlarged district shall give due consideration to the 
feasibility of maintaining such existing attendance centers and 
of establishing such other attendance centers, especially in 
rural areas, as will afford equitable and efficient school 
administration and assure the convenience and welfare of the 
pupils residing in the enlarged district.  The obligations of 
the new board to teachers employed by component districts shall 
be governed by the provisions of section 122.532. 
    Sec. 8.  Minnesota Statutes 1988, section 122.96, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELECTION.] The education district board shall 
not sell and issue bonds for acquisition purposes until the 
question of their issuance has been submitted to the voters of 
the education district at a special election held in and for the 
education district.  The date of the election, the question to 
be submitted, and all other necessary conduct of the election 
shall be fixed by the board.  The election shall be conducted 
and canvassed under the direction of the education district 
board in accordance with section 123.32 chapter 205A, insofar as 
may be applicable. 
    If a majority of the total number of votes cast on the 
question within the education district is in favor of the 
question, the board may proceed with the sale and the issuance 
of the bonds. 
    Sec. 9.  Minnesota Statutes 1988, section 124A.24, is 
amended to read: 
    124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
    If a district's general education levy is determined 
according to section 124A.23, subdivision 3, an amount must be 
deducted from state aid authorized in this chapter and chapter 
124, receivable for the same school year, and from other state 
payments receivable for the same school year authorized in 
sections 273.115; 273.116; 273.123, subdivision 6; 273.13, 
subdivision 15a; and Laws 1983, chapter 342, article 8, section 
8.  The aid in section 124.646 must not be reduced. 
    The amount of the deduction equals the difference between: 
    (1) the general education tax capacity rate, according to 
section 124A.23, times the district's adjusted gross tax 
capacity used to determine the general education aid for the 
same school year; and 
    (2) the district's general education revenue, excluding 
supplemental revenue, for the same school year, according to 
section 124A.22. 
    However, for fiscal year 1989, the amount of the deduction 
shall be one-fourth of the difference between clauses (1) and 
(2); for fiscal year 1990, the amount of the deduction shall be 
one-third of the difference between clauses (1) and (2); for 
fiscal year 1991, the amount of the deduction shall be one-half 
of the difference between clauses (1) and (2); for fiscal year 
1992, the amount of the deduction shall be four-sixths of the 
difference between clauses (1) and (2); and for fiscal year 
1993, the amount of the deduction shall be five-sixths of the 
difference between clauses (1) and (2). 
    Sec. 10.  Minnesota Statutes 1988, section 124A.27, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] An amount equal to 2.20 
percent of the basic revenue under section 124A.22, subdivision 
2, shall be reserved and may be used only to provide one or more 
of the programs enumerated in this section.  The school board 
shall determine which programs to provide, the manner in which 
they will be provided, and the extent to which other money may 
be used for the programs.  Except for the requirements of 
sections 124A.28 and 124A.29, the remaining general education 
revenue under section 124A.22 and supplemental revenue under 
section 124A.25 may be used to provide one or more of the 
programs enumerated in this section. 
    Sec. 11.  Minnesota Statutes 1988, section 127.35, is 
amended to read: 
    127.35 [NONAPPLICATION OF COMPULSORY ATTENDANCE LAW.] 
    The provisions of Minnesota Statutes 1971, section 120.10 
120.101, subdivision 1 5, shall not apply to any pupil during a 
dismissal pursuant to sections 127.26 to 127.39. 
    Sec. 12.  Minnesota Statutes 1988, section 136C.61, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERS.] The district shall be operated 
by a joint vocational technical board, which shall consist of 
the number of members from each of the participating school 
districts specified in the agreement establishing the joint 
vocational technical district.  Board members must be residents 
of the respective school districts represented and may be 
members of the school boards of the respective school 
districts.  The first members shall be appointed by their 
respective school boards.  The agreement may provide for 
election of members to take office at the end of a term of an 
appointed member.  Appointed members serve at the pleasure of 
their respective school boards and are subject to recall by a 
majority vote of the appointing board.  The election of members 
is governed by section 123.32 chapter 205A.  Board members shall 
report at least quarterly to their appointing boards on the 
activities of the joint vocational technical district. 
    Sec. 13.  Minnesota Statutes 1988, section 136D.27, 
subdivision 3, is amended to read: 
    Subd. 3.  [PROHIBITED STATE AIDS.] Notwithstanding section 
136D.24 or any law to the contrary, the department of education 
shall not pay, unless explicitly authorized by statute, any 
state aid, grant, credit, or other money to the joint school 
board, except the aid, credit, or money authorized by sections 
121.201, 123.3514, 124.2137, 124.252, 124.32, 124.573, 124.574, 
and 124.646, and chapter 273. 
    Sec. 14.  Minnesota Statutes 1988, section 136D.71, is 
amended to read: 
    136D.71 [LISTED DISTRICTS MAY FORM INTERMEDIATE DISTRICT.] 
    Notwithstanding any other law to the contrary, two or more 
of the independent school districts numbered 12 and 16 of Anoka 
county, independent school districts numbered 621, 622, 623, and 
624 of Ramsey county, and independent school districts numbered 
832, 833, and 834 of Washington county, are hereby authorized to 
enter into an agreement to establish a special intermediate 
school district upon majority vote of the full membership of 
each of the boards of the districts entering into the 
agreement.  When such resolution has been adopted by the board 
of one of the districts, it shall be published once in a 
newspaper of general circulation in said district.  If a 
petition for referendum on the question of said district 
entering into such agreement is filed with the clerk of the said 
board within 60 days after publication of such resolution, 
signed by the qualified voters of said district equal to five 
percent of the number of voters at the last annual school 
election.  No board shall enter into such agreement until the 
question of whether the district shall enter into the agreement 
has been submitted to the voters of said district at a special 
election.  Said election shall be conducted and canvassed in 
accordance with section 123.32 chapter 205A. 
    If a majority of the total number of votes cast on the 
question within said district is in favor of the question, the 
board of said school district may thereupon proceed to enter 
into an agreement to establish the special intermediate school 
district for purposes herein described.  Such school district so 
created shall be known as northeastern metropolitan intermediate 
school district, state of Minnesota.  The commissioner of 
education shall assign an appropriate identification number as 
provided by section 122.03. 
    Sec. 15.  Minnesota Statutes 1988, section 136D.74, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [PROHIBITED STATE AIDS.] Notwithstanding 
subdivision 4 or any law to the contrary, the department of 
education shall not pay, unless explicitly authorized, any state 
aid, grant, credit, or other money to the intermediate school 
board, except the aid, credit, or money authorized by sections 
121.201, 123.3514, 124.2137, 124.252, 124.32, 124.573, 124.574, 
and 124.646, and chapter 273. 
    Sec. 16.  Minnesota Statutes 1988, section 136D.741, 
subdivision 4, is amended to read: 
    Subd. 4.  [REFERENDUM.] The intermediate school board shall 
not sell and issue bonds for acquisition or betterment purposes 
until the question of their issuance has been submitted to the 
voters of the intermediate school district at a special election 
held in and for such intermediate district.  The date of such 
election, the question to be submitted, and all other necessary 
conduct of such election shall be fixed by the intermediate 
school board and said election shall be conducted and canvassed 
under the direction of the intermediate school board in 
accordance with section 123.32 chapter 205A, insofar as the same 
may be deemed applicable. 
    If a majority of the total number of votes cast on the 
question within the intermediate school district is in favor of 
the question, the intermediate school board may thereupon 
proceed with the sale and the issuance of said bonds. 
    Sec. 17.  Minnesota Statutes 1988, section 136D.87, 
subdivision 3, is amended to read: 
    Subd. 3.  [PROHIBITED STATE AIDS.] Notwithstanding section 
136D.24 or any law to the contrary, the department of education 
shall not pay, unless explicitly authorized, any state aid, 
grant, credit, or other money to the joint school board, except 
for aid, credit, or money authorized by sections 121.201, 
123.3514, 124.2137, 124.252, 124.32, 124.573, 124.574, and 
124.646, and chapter 273. 
    Sec. 18.  Minnesota Statutes 1988, section 145A.07, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AGREEMENTS TO PERFORM DUTIES OF 
COMMISSIONER.] (a) The commissioner of health may enter into an 
agreement with any board of health to delegate all or part of 
the licensing, inspection, reporting, and enforcement duties 
authorized under sections 144.12; 144.381 to 144.388; 144.411 to 
144.417; 144.71 to 144.76; 145A.04, subdivision 6; provisions of 
chapter 156A pertaining to construction, repair, and abandonment 
of water wells; chapter 157; and sections 327.14 to 327.28. 
    (b) Agreements are subject to subdivision 3. 
    (c) This subdivision does not affect agreements entered 
into under Minnesota Statutes 1986, section 145.031, 145.55, or 
145.918, subdivision 2. 
    Sec. 19.  Minnesota Statutes 1988, section 145A.13, is 
amended to read: 
    145A.13 [COMMUNITY HEALTH SERVICES SUBSIDY.] 
    Subdivision 1.  [SUBSIDY FORMULA.] The commissioner of 
health shall distribute a subsidy for the operations of boards 
of health community health boards organized and operating under 
sections 145.911 to 145.92 145A.09 to 145A.13. 
    (a) Each city or county eligible for a subsidy under 
section 145.917 145A.09, subdivision 2, shall receive no less 
for any calendar year than the total community health services 
subsidy that was allocated for that city or county by the 
commissioner of health under this section for calendar year 1985.
    (b) Additional money appropriated for the operations of 
boards of health as defined in section 145A.02, subdivision 
2, community health boards organized and operating under 
sections 145.911 to 145.92 145A.09 to 145A.13 shall be 
distributed in proportion to population. 
    Subd. 2.  [LOCAL MATCH.] Each board of health community 
health board that receives a subsidy shall provide local 
matching money equal to that subsidy during the year for which 
the subsidy is made, subject to the following provisions: 
    (a) the local matching funds may include local tax levies, 
gifts, fees for services and revenues from contracts; 
    (b) when the amount of local matching funds for a board of 
health community health board is less than the amount specified, 
the subsidy provided for that board of health community health 
board under this section shall be reduced proportionally; 
    (c) when a board of health community health board fails to 
expend the full amount of the subsidy to which it would be 
entitled in any one year under the provisions of 
sections 145.911 to 145.922 145A.09 to 145A.13, the state 
commissioner of health may retain the surplus, subject to 
disbursement to the board of health community health board in 
the following calendar year if the board of health community 
health board can demonstrate a need for and ability to expend 
the surplus for the purposes provided in section 145.918 
145A.10; and 
    (d) a city organized under the provisions of sections 
145.911 to 145.922 145A.09 to 145A.13 that levies a tax for 
provision of community health services shall be exempted from 
any county levy for the same services to the extent of the levy 
imposed by the city. 
    Subd. 3.  [PAYMENT.] When a board of health community 
health board meets the requirements prescribed in 
section 145.917 145A.09, subdivision 2, the state commissioner 
of health shall pay the amount of subsidy to the board of health 
community health board or its designee according to applicable 
rules from the money appropriated for the purpose and according 
to the following: 
    (a) the commissioner of health shall make payments for 
community health services to each board of health community 
health board or its designee in 12 installments a year; 
    (b) the commissioner shall ensure that the pertinent 
payment of the allotment for each month is made on the first 
working day after the end of each month of the calendar year, 
except for the last month of the calendar year; 
    (c) the commissioner shall ensure that each board of health 
community health board or its designee receives its payment of 
the allotment for that month no later than the last working day 
of that month.  The payment described in this subdivision for 
services rendered during June, 1985, shall be made on the first 
working day of July, 1985; and 
    (d) the commissioner shall make payment to a human services 
board organized and operating under section 145.913, subdivision 
1, paragraph (a) 145A.09, subdivision 5, or to its designee, as 
prescribed in section 402.02, subdivision 4. 
    Sec. 20.  Minnesota Statutes 1988, section 157.03, is 
amended to read: 
    157.03 [LICENSES REQUIRED; FEES.] 
    Each year every person, firm, or corporation engaged in the 
business of conducting an hotel, motel, restaurant, lodging 
house, boarding house, or resort, or place of refreshment, or 
who shall hereafter engage in conducting any such business, 
except vending machine operators licensed under the license 
provisions of sections 28A.01 to 28A.16, must procure a license 
for each hotel, motel, restaurant, lodging house, boarding 
house, or resort, or place of refreshment so conducted.  For any 
hotel, motel, resort, campground, or manufactured home park as 
defined in section 327.15, in which food, fountain, or bar 
service is furnished, one license, in addition to the hotel, 
resort, manufactured home park, or campground license, shall be 
sufficient for all restaurants and places of refreshment 
conducted on the same premises and under the same management 
with the hotel, motel, resort, manufactured home park, or 
campground.  Each license shall expire and be renewed as 
prescribed by the commissioner pursuant to section 144.122.  Any 
proprietor who operates a place of business after the expiration 
date without first having made application for a license and 
without having made payment of the fee thereof shall be deemed 
to have violated the provisions of this chapter and be subject 
to prosecution, as provided in this chapter.  In addition 
thereto, a penalty in an amount prescribed by the commissioner 
pursuant to section 144.122 shall be added to the amount of the 
license fee and paid by the proprietor, as provided herein, if 
the application has not reached the office of the state 
commissioner of health within 30 days following the expiration 
of license; or, in the case of a new business, 30 days after the 
opening date of the business.  The state commissioner of health 
shall furnish to any person, firm, or corporation desiring to 
conduct an hotel, motel, restaurant, lodging house, boarding 
house, or resort, or place of refreshment an application blank 
to be filled out by the person, firm, or corporation, for a 
license therefor, which shall require the applicant to state the 
full name and address of the owner of the building, structure, 
or enclosure, the lessee and manager of the hotel, motel, 
restaurant, lodging house, boarding house, or resort, or place 
of refreshment, the location of the same, the name under which 
the business is to be conducted, and any other information as 
may be required therein by the state commissioner of health to 
complete the application for license.  The application shall be 
accompanied by a license fee as hereinafter provided. 
      For hotels, motels, lodging houses, and resorts the license 
fee may be graduated according to the number of sleeping rooms 
and the amount of the fees shall be prescribed by the state 
commissioner of health pursuant to section 144.122. 
      For restaurants, places of refreshment, and boarding houses 
the license fee may be based on the average number of 
employees.  If the license fee is so computed, the commissioner 
shall consider each full-time employee as one employee and each 
part-time employee as that fraction of one employee as the 
number of months the employee is employed is to the 12 months of 
the year.  Employees shall include all persons, except children 
of the licensee under the age of 18, at work in any capacity, 
either voluntary or paid, and whether or not reported under the 
labor laws of this state. 
    If the license fee is based upon the average number of 
employees, every licensee shall, at the time of application, 
certify as to the number of employees on forms provided by the 
state commissioner of health and the state commissioner of 
health shall have access, on demand, to any and all employment 
records for purposes of substantiating or correcting numbers of 
declared employees. 
    License fees for restaurants, places of refreshment, and 
boarding houses shall be in an amount prescribed by the state 
commissioner of health pursuant to section 144.122. 
    No school, as defined in sections 120.05 and 120.10, 
subdivision 2 120.101, may be required to pay a license fee. 
    Sec. 21.  Minnesota Statutes 1988, section 168A.24, 
subdivision 2, is amended to read: 
    Subd. 2.  The department may: 
    (1) Make necessary investigations to procure information 
required to carry out the provisions of sections 168A.01 to 
168A.31; 
    (2) Assign a new identifying number to a vehicle if it has 
none, or its identifying number is destroyed or obliterated; 
    (3) Adopt and enforce such rules as may be necessary to 
carry out the provisions of sections 168A.01 to 168A.31; 
    (4) Adopt and enforce such rules as the department may deem 
necessary or appropriate to require the payment of fees imposed 
by sections 168.30 and section 168.54, as a condition for 
deferring application for a certificate of title by a dealer or 
secured party in cases provided for in section 168A.11 or 
168A.12, subdivision 2.  Such rules shall permit the use of the 
"Transfer Filing Fee" stamp prescribed by section 168.54, when 
feasible.  
    (5) Adopt a rule which may require the owner or secured 
party, as the case may be, to deposit the certificate of title 
with the department during the period when the vehicle for which 
such certificate was issued is registered pursuant to section 
168.31, subdivision 4, or is subject to the lien imposed by 
section 168.31, subdivision 6. 
    Sec. 22.  Minnesota Statutes 1988, section 168A.29, 
subdivision 3, is amended to read: 
    Subd. 3.  Subject to subdivision 2, the department shall 
not issue a certificate of title to a vehicle until all fees 
prescribed by sections 168.30 and 168.54 and 168A.10, 
subdivision 6, with respect to any prior transfer of ownership 
or registration of the vehicle shall have been paid. 
    Sec. 23.  Minnesota Statutes 1988, section 176.081, 
subdivision 1, is amended to read: 
    Subdivision 1.  (a) A fee for legal services of 25 percent 
of the first $4,000 of compensation awarded to the employee and 
20 percent of the next $27,500 of compensation awarded to the 
employee is permissible and does not require approval by the 
commissioner, compensation judge, or any other party except as 
provided in clause (b).  If the employer or the insurer or the 
defendant is given written notice of claims for legal services 
or disbursements, the claim shall be a lien against the amount 
paid or payable as compensation.  In no case shall fees be 
calculated on the basis of any undisputed portion of 
compensation awards.  Allowable fees under this chapter shall be 
based solely upon genuinely disputed portions of claims, 
including disputes related to the payment of rehabilitation 
benefits or to other aspects of a rehabilitation plan.  Fees for 
administrative conferences under section 176.242, 176.2421, 
176.243, or 176.244 176.239 shall be determined on an hourly 
basis, according to the criteria in subdivision 5.  
    (b) An attorney who is claiming legal fees under this 
section shall file a statement of attorney's fees with the 
commissioner, compensation judge before whom the matter was 
heard, or workers' compensation court of appeals on cases before 
the court.  A copy of the signed retainer agreement shall also 
be filed.  The employee and insurer shall receive a copy of the 
statement.  The statement shall be on a form prescribed by the 
commissioner and shall clearly and conspicuously state that the 
employee or insurer has ten calendar days to object to the 
attorney fees requested.  If no objection is timely made by the 
employee or insurer, the amount requested shall be conclusively 
presumed reasonable providing the amount does not exceed the 
limitation in subdivision 1.  The commissioner, compensation 
judge, or court of appeals shall issue an order granting the 
fees and the amount requested shall be awarded to the party 
requesting the fee.  
     If a timely objection is filed, or the fee is determined on 
an hourly basis, the commissioner, compensation judge, or court 
of appeals shall review the matter and make a determination 
based on the criteria in subdivision 5. 
     If no timely objection is made by an employer or insurer, 
reimbursement under subdivision 7 shall be made if the statement 
of fees requested this reimbursement. 
    Sec. 24.  Minnesota Statutes 1988, section 176.101, 
subdivision 3e, is amended to read: 
    Subd. 3e.  [END OF TEMPORARY TOTAL COMPENSATION; SUITABLE 
JOB.] (a) Ninety days after an employee has reached maximum 
medical improvement and the medical report described in clause 
(c) has been served on the employee, or 90 days after the end of 
an approved retraining program, whichever is later, the 
employee's temporary total compensation shall cease.  This 
cessation shall occur at an earlier date if otherwise provided 
by this chapter.  
    (b) If at any time prior to the end of the 90-day period 
described in clause (a) the employee retires or the employer 
furnishes work to the employee that is consistent with an 
approved plan of rehabilitation and meets the requirements of 
section 176.102, subdivision 1, or, if no plan has been 
approved, that the employee can do in the employee's physical 
condition and that job produces an economic status as close as 
possible to that the employee would have enjoyed without the 
disability, or the employer procures this employment with 
another employer or the employee accepts this job with another 
employer, temporary total compensation shall cease and the 
employee shall, if appropriate, receive impairment compensation 
pursuant to subdivision 3b.  This impairment compensation is in 
lieu of economic recovery compensation under subdivision 3a, and 
the employee shall not receive both economic recovery 
compensation and impairment compensation.  Temporary total 
compensation and impairment compensation shall not be paid 
concurrently.  Once temporary total compensation ceases no 
further temporary total compensation is payable except as 
specifically provided by this section.  
     (c) Upon receipt of a written medical report indicating 
that the employee has reached maximum medical improvement, the 
employer or insurer shall serve a copy of the report upon the 
employee and shall file a copy with the division.  The beginning 
of the 90-day period described in clause (a) shall commence on 
the day this report is served on the employee for the purpose of 
determining whether a job offer consistent with the requirements 
of this subdivision is made.  A job offer may be made before the 
employee reaches maximum medical improvement.  
     (d) The job which is offered or procured by the employer or 
accepted by the employee under clause (b) does not necessarily 
have to commence immediately but shall commence within a 
reasonable period after the end of the 90-day period described 
in clause (a).  Temporary total compensation shall not cease 
under this subdivision until the job commences.  
     (e) If the job offered under clause (a) is offered or 
procured by the employer and is not the job the employee had at 
the time of injury it shall be offered and described in writing. 
The written description shall state the nature of the job, the 
rate of pay, the physical requirements of the job, and any other 
information necessary to fully and completely inform the 
employee of the job duties and responsibilities.  The written 
description and the written offer need not be contained in the 
same document.  
    The employee has 14 calendar days after receipt of the 
written description and offer to accept or reject the job 
offer.  If the employee does not respond within this period it 
is deemed a refusal of the offer.  Where there is an 
administrative conference to determine suitability under 
subdivision 3v, or section 176.242 176.239, the period begins to 
run on the date of the commissioner's decision.  
    (f) Self-employment may be an appropriate job under this 
subdivision.  
    The commissioner shall monitor application of this 
subdivision and may adopt rules to assure its proper application.
    Sec. 25.  Minnesota Statutes 1988, section 176.421, 
subdivision 7, is amended to read: 
    Subd. 7.  [RECORD OF PROCEEDINGS.] At the division's own 
expense, the commissioner shall make a complete record of all 
proceedings before the commissioner and shall provide a 
stenographer or an audio magnetic recording device to make the 
record of the proceedings. 
    The commissioner shall furnish a transcript of these 
proceedings to any person who requests it and who pays a 
reasonable charge which shall be set by the commissioner.  Upon 
a showing of cause, the commissioner may direct that a 
transcript be prepared without expense to the person requesting 
the transcript, in which case the cost of the transcript shall 
be paid by the division.  Transcript fees received under this 
subdivision shall be paid to the workers' compensation division 
account in the state treasury and shall be annually appropriated 
to the division for the sole purpose of providing a record and 
transcripts as provided in this subdivision.  This subdivision 
does not apply to any administrative conference or other 
proceeding before the commissioner which may be heard de novo in 
another proceeding including but not limited to proceedings 
under section 176.102, 176.103, 176.242, or 176.243 176.101 or 
176.239. 
    Sec. 26.  Minnesota Statutes 1988, section 211B.15, 
subdivision 4, is amended to read: 
    Subd. 4.  [BALLOT QUESTION.] A corporation may make 
contributions or expenditures to promote or defeat a ballot 
question, to qualify a question for placement on the ballot 
unless otherwise prohibited by law, or to express its views on 
issues of public concern.  A corporation may not take a 
deduction as provided in section 290.09 for an expenditure made 
under this subdivision.  A corporation may not make a 
contribution to a candidate for nomination, election, or 
appointment to a political office or to a committee organized 
wholly or partly to promote or defeat a candidate. 
    Sec. 27.  Minnesota Statutes 1988, section 245.77, is 
amended to read: 
    245.77 [LEGAL SETTLEMENT OF PERSONS RECEIVING ASSISTANCE; 
ACCEPTANCE OF FEDERAL FUNDS.] 
    In the event federal funds become available to the state 
for purposes of reimbursing the several local agencies of the 
state for costs incurred in providing financial relief to poor 
persons under the liability imposed by Minnesota Statutes 1986, 
section 256D.18, or for reimbursing the state and counties for 
categorical aid assistance furnished to persons who are eligible 
for such assistance only because of the United States Supreme 
Court decision invalidating state residence requirements the 
commissioner of human services is hereby designated the state 
agent for receipt of such funds.  Upon receipt of any federal 
funds the commissioner shall in a uniform and equitable manner 
use such funds to reimburse counties for expenditures made in 
providing financial relief to poor persons.  The commissioner is 
further authorized to promulgate rules, consistent with the 
rules and regulations promulgated by the secretary of health, 
education and welfare, governing the reimbursement provided for 
by this provision. 
    Sec. 28.  Minnesota Statutes 1988, section 256.991, is 
amended to read: 
    256.991 [RULES.] 
    The commissioner of human services may promulgate emergency 
and permanent rules as necessary to implement sections 256.01, 
subdivision 2; 256.82, subdivision 3; 256.966, subdivision 1; 
256.968; 256D.03, subdivisions 3, 4, 6, and 7; and 261.23.  The 
commissioner shall promulgate emergency and permanent rules to 
establish standards and criteria for deciding which medical 
assistance services require prior authorization and for deciding 
whether a second medical opinion is required for an elective 
surgery.  The commissioner shall promulgate permanent and 
emergency rules as necessary to establish the methods and 
standards for determining inappropriate utilization of medical 
assistance services.  
    The commissioner of human services shall adopt emergency 
rules which meet the requirements of sections 14.29 to 14.36 for 
the medical assistance demonstration project.  Notwithstanding 
the provisions of section 14.35, the emergency rules promulgated 
to implement section 256B.69 shall be effective for 360 days and 
may be continued in effect for an additional 900 days if the 
commissioner gives notice by publishing a notice in the State 
Register and mailing notice to all persons registered with the 
commissioner to receive notice of rulemaking proceedings in 
connection with the project.  The emergency rules shall not be 
effective beyond December 31, 1986, without meeting the 
requirements of sections 14.131 to 14.20. 
    Sec. 29.  Minnesota Statutes 1988, section 257.354, 
subdivision 4, is amended to read: 
    Subd. 4.  [EFFECT OF TRIBAL COURT PLACEMENT ORDERS.] To the 
extent that any child subject to sections 257.35 to 257.357 is 
otherwise eligible for social services, orders of a tribal court 
concerning placement of such child shall have the same force and 
effect as orders of a court of this state.  In any case where 
the tribal court orders placement through a local social service 
agency, the court shall provide to the local agency notice and 
an opportunity to be heard regarding the placement.  
Determination of county of financial responsibility for the 
placement shall be determined by the local social service agency 
in accordance with section 256E.08 256G.02, subdivision 4.  
Disputes concerning the county of financial responsibility shall 
be settled in the manner prescribed in section 256D.18, 
subdivision 4 256G.09. 
    Sec. 30.  Minnesota Statutes 1988, section 268.04, 
subdivision 32, is amended to read: 
    Subd. 32.  "Nonpublic school" means any school within the 
state, other than a public school, wherein a resident of 
Minnesota may legally fulfill the compulsory school attendance 
requirements of section 120.10 120.101, or any school (1) which 
operates on a nonprofit basis, (2) which admits only 
prekindergarten children, (3) which has as its primary purpose 
the education of its students as determined by the commissioner 
of human services pursuant to section 245A.03, clause (14), and 
(4) which operates on a regular basis for at least eight months 
and no more than nine months a year. 
    Sec. 31.  Minnesota Statutes 1988, section 272.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  All property described in this section to 
the extent herein limited shall be exempt from taxation: 
     (1) all public burying grounds; 
     (2) all public schoolhouses; 
     (3) all public hospitals; 
     (4) all academies, colleges, and universities, and all 
seminaries of learning; 
     (5) all churches, church property, and houses of worship; 
     (6) institutions of purely public charity except parcels of 
property containing structures and the structures described in 
section 273.13, subdivision 25, paragraph (c), clause (1) or 
(2), or paragraph (d), clause (2); 
     (7) all public property exclusively used for any public 
purpose; 
     (8) except for the taxable personal property enumerated 
below, all personal property and the property described in 
section 272.03, subdivision 1, paragraphs (c) and (d), shall be 
exempt.  
     The following personal property shall be taxable:  
     (a) personal property which is part of an electric 
generating, transmission, or distribution system or a pipeline 
system transporting or distributing water, gas, crude oil, or 
petroleum products or mains and pipes used in the distribution 
of steam or hot or chilled water for heating or cooling 
buildings and structures; 
     (b) railroad docks and wharves which are part of the 
operating property of a railroad company as defined in section 
270.80; 
     (c) personal property defined in section 272.03, 
subdivision 2, clause (3); 
     (d) leasehold or other personal property interests which 
are taxed pursuant to section 272.01, subdivision 2; 273.124, 
subdivision 7; or 273.19, subdivision 1; or any other law 
providing the property is taxable as if the lessee or user were 
the fee owner; 
     (e) manufactured homes and sectional structures; and 
     (f) flight property as defined in section 270.071.  
     (9) Real and personal property used primarily for the 
abatement and control of air, water, or land pollution to the 
extent that it is so used, other than real property used 
primarily as a solid waste disposal site. 
     Any taxpayer requesting exemption of all or a portion of 
any equipment or device, or part thereof, operated primarily for 
the control or abatement of air or water pollution shall file an 
application with the commissioner of revenue.  The equipment or 
device shall meet standards, rules, or criteria prescribed by 
the Minnesota pollution control agency, and must be installed or 
operated in accordance with a permit or order issued by that 
agency.  The Minnesota pollution control agency shall upon 
request of the commissioner furnish information or advice to the 
commissioner.  On determining that property qualifies for 
exemption, the commissioner shall issue an order exempting the 
property from taxation.  The equipment or device shall continue 
to be exempt from taxation as long as the permit issued by the 
Minnesota pollution control agency remains in effect. 
     (10) Wetlands.  For purposes of this subdivision, 
"wetlands" means (1) land described in section 105.37, 
subdivision 15, or (2) land which is mostly under water, 
produces little if any income, and has no use except for 
wildlife or water conservation purposes, provided it is 
preserved in its natural condition and drainage of it would be 
legal, feasible, and economically practical for the production 
of livestock, dairy animals, poultry, fruit, vegetables, forage 
and grains, except wild rice.  "Wetlands" shall include adjacent 
land which is not suitable for agricultural purposes due to the 
presence of the wetlands.  "Wetlands" shall not include woody 
swamps containing shrubs or trees, wet meadows, meandered water, 
streams, rivers, and floodplains or river bottoms.  Exemption of 
wetlands from taxation pursuant to this section shall not grant 
the public any additional or greater right of access to the 
wetlands or diminish any right of ownership to the wetlands. 
     (11) Native prairie.  The commissioner of the department of 
natural resources shall determine lands in the state which are 
native prairie and shall notify the county assessor of each 
county in which the lands are located.  Pasture land used for 
livestock grazing purposes shall not be considered native 
prairie for the purposes of this clause and section 273.116.  
Upon receipt of an application for the exemption and credit 
provided in this clause and section 273.116 for lands for which 
the assessor has no determination from the commissioner of 
natural resources, the assessor shall refer the application to 
the commissioner of natural resources who shall determine within 
30 days whether the land is native prairie and notify the county 
assessor of the decision.  Exemption of native prairie pursuant 
to this clause shall not grant the public any additional or 
greater right of access to the native prairie or diminish any 
right of ownership to it. 
    (12) Property used in a continuous program to provide 
emergency shelter for victims of domestic abuse, provided the 
organization that owns and sponsors the shelter is exempt from 
federal income taxation pursuant to section 501(c)(3) of the 
Internal Revenue Code of 1986, as amended through December 31, 
1986, notwithstanding the fact that the sponsoring organization 
receives funding under section 8 of the United States Housing 
Act of 1937, as amended. 
    (13) If approved by the governing body of the municipality 
in which the property is located, property not exceeding one 
acre which is owned and operated by 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; provided the property is 
used primarily as a clubhouse, meeting facility, or recreational 
facility by the group or association and the property is not 
used for residential purposes on either a temporary or permanent 
basis. 
     (14) To the extent provided by section 295.44, real and 
personal property used or to be used primarily for the 
production of hydroelectric or hydromechanical power on a site 
owned by the state or a local governmental unit which is 
developed and operated pursuant to the provisions of section 
105.482, subdivisions 1, 8, and 9. 
     (15) If approved by the governing body of the municipality 
in which the property is located, and if construction is 
commenced after June 30, 1983:  
     (a) a "direct satellite broadcasting facility" operated by 
a corporation licensed by the federal communications commission 
to provide direct satellite broadcasting services using direct 
broadcast satellites operating in the 12-ghz. band; and 
     (b) a "fixed satellite regional or national program service 
facility" operated by a corporation licensed by the federal 
communications commission to provide fixed satellite-transmitted 
regularly scheduled broadcasting services using satellites 
operating in the 6-ghz. band. 
An exemption provided by paragraph (15) shall apply for a period 
not to exceed five years.  When the facility no longer qualifies 
for exemption, it shall be placed on the assessment rolls as 
provided in subdivision 4.  Before approving a tax exemption 
pursuant to this paragraph, the governing body of the 
municipality shall provide an opportunity to the members of the 
county board of commissioners of the county in which the 
facility is proposed to be located and the members of the school 
board of the school district in which the facility is proposed 
to be located to meet with the governing body.  The governing 
body shall present to the members of those boards its estimate 
of the fiscal impact of the proposed property tax exemption.  
The tax exemption shall not be approved by the governing body 
until the county board of commissioners has presented its 
written comment on the proposal to the governing body, or 30 
days has passed from the date of the transmittal by the 
governing body to the board of the information on the fiscal 
impact, whichever occurs first. 
     (16) Real and personal property owned and operated by a 
private, nonprofit corporation exempt from federal income 
taxation pursuant to United States Code, title 26, section 
501(c)(3), primarily used in the generation and distribution of 
hot water for heating buildings and structures.  
     (17) Notwithstanding section 273.19, state lands that are 
leased from the department of natural resources under section 
92.46. 
     (18) Electric power distribution lines and their 
attachments and appurtenances, that are used primarily for 
supplying electricity to farmers at retail.  
     (19) Transitional housing facilities.  "Transitional 
housing facility" means a facility that meets the following 
requirements.  (i) It provides temporary housing to parents and 
children who are receiving AFDC or parents of children who are 
temporarily in foster care.  (ii) It has the purpose of 
reuniting families and enabling parents to advance their 
education, get job training, or become employed in jobs that 
provide a living wage.  (iii) It provides support services such 
as child care, work readiness training, and career development 
counseling; and a self-sufficiency program with periodic 
monitoring of each resident's progress in completing the 
program's goals.  (iv) It provides services to a resident of the 
facility for at least six months but no longer than one year, 
except residents enrolled in an educational or vocational 
institution or job training program.  These residents may 
receive services during the time they are enrolled but in no 
event longer than four years.  (v) It is sponsored by an 
organization that has received a grant under section 256.7365 
for the biennium ending June 30, 1989, for the purposes of 
providing the services in items (i) to (iv).  (vi) It is 
sponsored by an organization that is exempt from federal income 
tax under section 501(c)(3) of the Internal Revenue Code of 
1986, as amended through December 31, 1987.  This exemption 
applies notwithstanding the fact that the sponsoring 
organization receives financing by a direct federal loan or 
federally insured loan or a loan made by the Minnesota housing 
finance agency under the provisions of either Title II of the 
National Housing Act or the Minnesota housing finance agency law 
of 1971 or rules promulgated by the agency pursuant to it, and 
notwithstanding the fact that the sponsoring organization 
receives funding under Section 8 of the United States Housing 
Act of 1937, as amended. 
    Sec. 32.  Minnesota Statutes 1988, section 290.05, 
subdivision 3, is amended to read: 
    Subd. 3.  (a) An organization exempt from taxation under 
subdivision 2 shall, nevertheless, be subject to tax under this 
chapter to the extent provided in the following provisions of 
the Internal Revenue Code:  
    (i) Section 527 (dealing with political organizations) and 
(ii) section 528 (dealing with certain homeowners associations) 
but 
    notwithstanding this subdivision, shall be considered an 
organization exempt from income tax for the purposes of any law 
which refers to organizations exempt from income taxes.  
    (b) The tax shall be imposed on the taxable income of 
political organizations or homeowner associations.  The tax 
shall be at the corporate rates.  The tax shall only be imposed 
on income and deductions assignable to this state under sections 
290.17 to 290.20.  To the extent deducted in computing federal 
taxable income, the deductions contained in sections 290.09 and 
section 290.21 shall not be allowed in computing Minnesota 
taxable net income. 
    Sec. 33.  Minnesota Statutes 1988, section 298.2211, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSE; GRANT OF AUTHORITY.] In order to 
accomplish the legislative purposes specified in sections 
469.142 to 469.165 and chapter 462C, within tax relief areas as 
defined in section 273.134, the commissioner of iron range 
resources and rehabilitation may exercise the following powers:  
(1) all powers conferred upon a rural development financing 
authority under sections 469.142 to 469.149; (2) all powers 
conferred upon a city under chapter 462C, subject to compliance 
with the provisions of section 474A.07; (3) all powers conferred 
upon a municipality or a redevelopment agency under sections 
469.152 to 469.165; (4) all powers provided by sections 469.142 
to 469.151 to further any of the purposes and objectives of 
chapter 462C and sections 469.152 to 469.165; and (5) all powers 
conferred upon a municipality or an authority under sections 
469.174 to 469.177, 469.178, except subdivision 2 thereof, and 
469.179, subject to compliance with the provisions of section 
469.175, subdivisions 1, 2, and 3; provided that any tax 
increments derived by the commissioner from the exercise of this 
authority may be used only to finance or pay premiums or fees 
for insurance, letters of credit, or other contracts 
guaranteeing the payment when due of net rentals under a project 
lease or the payment of principal and interest due on or 
repurchase of bonds issued to finance a project or program, to 
accumulate and maintain reserves securing the payment when due 
on bonds issued to finance a project or program, or to provide 
an interest rate reduction program pursuant to section 469.012, 
subdivision 7.  Tax increments and earnings thereon remaining in 
any bond reserve account after payment or discharge of any bonds 
secured thereby shall be used within one year thereafter in 
furtherance of this section or returned to the county auditor of 
the county in which the tax increment financing district is 
located.  If returned to the county auditor, the county auditor 
shall immediately allocate the amount among all government units 
which would have shared therein had the amount been received as 
part of the other ad valorem taxes on property in the district 
most recently paid, in the same proportions as other taxes were 
distributed, and shall immediately distribute it to the 
government units in accordance with the allocation. 
    Sec. 34.  Minnesota Statutes 1988, section 308.11, is 
amended to read: 
    308.11 [DIRECTORS; OFFICERS.] 
    Every cooperative association organized under sections 
308.05 to 308.18 shall be governed by a board of not less than 
five directors, except in the case of a cooperative apartment 
housing corporation as defined in section 290.09, subdivision 17 
216(b) of the Internal Revenue Code of 1986, as amended through 
December 31, 1987, in which case the number of directors shall 
not be less than three, who shall be members of the 
association.  If a member of an association is a family farm 
corporation within the meaning of section 500.24, subdivision 2, 
clause (c), or an authorized farm corporation within the meaning 
of section 500.24, subdivision 2, clause (d), the member may 
elect or appoint a stockholder of the corporation residing on or 
actively operating the farm who shall be eligible for election 
to the board of directors.  If a member of an association be 
other than a natural person, family farm corporation, or an 
authorized farm corporation, and if the bylaws of the 
association do not provide otherwise, the member may appoint or 
elect one or, in the case of associations wholly constituted of 
other cooperative associations, one or more natural persons who 
shall be eligible for election to the board of directors.  
Directors shall be elected for the term, at the time, and in the 
manner provided in sections 308.05 to 308.18 and the bylaws of 
the association.  The directors shall elect from their number a 
president and one or more vice-presidents.  They shall also 
elect a secretary and a treasurer, who need not be directors or 
stockholders. The offices of secretary and treasurer may be 
combined and when combined the person filling the office shall 
be termed secretary-treasurer.  If the bylaws provide, the board 
of directors may also elect from their number a chair and one or 
more vice-chairs, in which case the president and 
vice-presidents need not be directors or stockholders.  The 
board of directors may also elect additional officers as the 
articles or bylaws may authorize or require, and unless 
otherwise required by the articles or bylaws, the additional 
officers need not be directors or stockholders.  The 
stockholders shall have the power, at any regular or special 
stockholders' meeting regularly called in the manner above 
provided, to remove a director or officer for cause and to fill 
the vacancy caused by the removal. 
    Sec. 35.  Minnesota Statutes 1988, section 352.01, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [EXCLUDED EMPLOYEES.] "State employee" does not 
include: 
    (1) elective state officers; 
    (2) students employed by the University of Minnesota, the 
state universities, and community colleges unless approved for 
coverage by the board of regents, the state university board, or 
the state board for community colleges, as the case may be; 
    (3) employees who are eligible for membership in the state 
teachers retirement association except employees of the 
department of education who have chosen or may choose to be 
covered by the Minnesota state retirement system instead of the 
teachers retirement association; 
    (4) employees of the University of Minnesota who are 
excluded from coverage by action of the board of regents; 
    (5) officers and enlisted personnel in the national guard 
and the naval militia who are assigned to permanent peacetime 
duty and who under federal law are or are required to be members 
of a federal retirement system; 
    (6) election officers; 
    (7) persons engaged in public work for the state but 
employed by contractors when the performance of the contract is 
authorized by the legislature or other competent authority; 
    (8) officers and employees of the senate and house of 
representatives or a legislative committee or commission who are 
temporarily employed; 
    (9) court employees, referees, receivers, jurors, and 
notaries public, except employees of the appellate courts and 
referees and adjusters employed by the department of labor and 
industry; 
    (10) patient and inmate help in state charitable, penal, 
and correctional institutions including the Minnesota veterans 
home; 
    (11) persons employed for professional services where the 
service is incidental to regular professional duties and whose 
compensation is paid on a per diem basis; 
    (12) employees of the Sibley House Association; 
    (13) employees of the Grand Army of the Republic and 
employees of the ladies of the G.A.R.; 
    (14) operators and drivers employed under section 16.07, 
subdivision 4; 
    (15) the members of any state board or commission who serve 
the state intermittently and are paid on a per diem basis; the 
secretary, secretary-treasurer, and treasurer of those boards if 
their compensation is $500 or less per year, or, if they are 
legally prohibited from serving more than two consecutive terms 
and their total service is required by law to be less than ten 
years; and the board of managers of the state agricultural 
society and its treasurer unless the treasurer is also its 
full-time secretary; 
    (16) (15) state troopers; 
    (17) (16) temporary employees of the Minnesota state fair 
employed on or after July 1 for a period not to extend beyond 
October 15 of that year; and persons employed at any time by the 
state fair administration for special events held on the 
fairgrounds; 
    (18) (17) emergency employees in the classified service; 
except that if an emergency employee, within the same pay 
period, becomes a provisional or probationary employee on other 
than a temporary basis, the employee shall be considered a 
"state employee" retroactively to the beginning of the pay 
period; 
    (19) (18) persons described in section 352B.01, subdivision 
2, clauses (b) and (c) formerly defined as state police 
officers; 
    (20) (19) temporary employees in the classified service, 
temporary employees in the unclassified service appointed for a 
definite period of not more than six months and employed less 
than six months in any one-year period and seasonal help in the 
classified service employed by the department of revenue; 
    (21) (20) trainees paid under budget classification number 
41, and other trainee employees, except those listed in 
subdivision 2a, clause (10); 
    (22) (21) persons whose compensation is paid on a fee 
basis; 
    (23) (22) state employees who in any year have credit for 
12 months service as teachers in the public schools of the state 
and as teachers are members of the teachers retirement 
association or a retirement system in St. Paul, Minneapolis, or 
Duluth; 
    (24) (23) employees of the adjutant general employed on an 
unlimited intermittent or temporary basis in the classified and 
unclassified service for the support of army and air national 
guard training facilities; 
    (25) (24) chaplains and nuns who have taken a vow of 
poverty as members of a religious order; 
    (26) (25) labor service employees employed as a laborer 1 
on an hourly basis; 
    (27) (26) examination monitors employed by departments, 
agencies, commissions, and boards to conduct examinations 
required by law; 
    (28) (27) members of appeal tribunals, exclusive of the 
chair, to which reference is made in section 268.10, subdivision 
4; 
    (29) (28) persons appointed to serve as members of 
fact-finding commissions or adjustment panels, arbitrators, or 
labor referees under chapter 179; 
    (30) (29) temporary employees employed for limited periods 
under any state or federal program for training or 
rehabilitation including persons employed for limited periods 
from areas of economic distress except skilled and supervisory 
personnel and persons having civil service status covered by the 
system; 
    (31) (30) full-time students employed by the Minnesota 
historical society intermittently during part of the year and 
full-time during the summer months; 
    (32) (31) temporary employees, appointed for not more than 
six months, of the metropolitan council and of any of its 
statutory boards, if the board members are appointed by the 
metropolitan council; 
    (33) (32) persons employed in positions designated by the 
department of employee relations as student workers; 
    (34) (33) any person who is 65 years of age or older when 
appointed and who does not have allowable service credit for 
previous employment, unless the employee gives notice to the 
director within 60 days after appointment that coverage is 
desired; 
    (35) (34) members of trades employed by the metropolitan 
waste control commission with trade union pension plan coverage 
under a collective bargaining agreement first employed after 
June 1, 1977; 
    (36) (35) persons employed in subsidized on-the-job 
training, work experience, or public service employment as 
enrollees under the federal Comprehensive Employment and 
Training Act after March 30, 1978, unless the person has as of 
the later of March 30, 1978 or the date of employment sufficient 
service credit in the retirement system to meet the minimum 
vesting requirements for a deferred annuity, or the employer 
agrees in writing on forms prescribed by the director to make 
the required employer contributions, including any employer 
additional contributions, on account of that person from revenue 
sources other than funds provided under the federal 
Comprehensive Employment and Training Act, or the person agrees 
in writing on forms prescribed by the director to make the 
required employer contribution in addition to the required 
employee contribution; 
    (37) (36) off-duty peace officers while employed by the 
metropolitan transit commission under section 629.40, 
subdivision 5; and 
    (38) (37) persons who are employed as full-time 
firefighters by the department of military affairs and as 
firefighters are members of the public employees police and fire 
fund. 
    Sec. 36.  Minnesota Statutes 1988, section 353.01, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [INCLUDED EMPLOYEES.] The following persons are 
included in the meaning of "public employee": 
    (1) elected or appointed officers and employees of elected 
officers; 
    (2) district court reporters; 
    (3) officers and employees of the public employees 
retirement association; 
    (4) employees of the league of Minnesota cities; 
    (5) officers and employees of public hospitals owned or 
operated by, or an integral part of, a governmental subdivision 
or governmental subdivisions; 
    (6) employees of a school district who receive separate 
salaries for driving their own buses; 
    (7) employees of the association of Minnesota counties; 
    (8) employees of the metropolitan intercounty association; 
    (9) employees of the Minnesota municipal utilities 
association; 
    (10) employees of the metropolitan airports commission if 
employment initially commenced after June 30, 1979; 
    (11) employees of the Minneapolis employees retirement 
fund, if employment initially commenced after June 30, 1979; 
    (12) employees of the range association of municipalities 
and schools; 
    (13) employees of the soil and water conservation 
districts; 
    (14) employees of a county historical society who are 
county employees; 
    (15) employees of a county historical society located in 
the county whom the county, at its option, certifies to the 
executive director to be county employees for purposes of 
retirement coverage under this chapter, which status must be 
accorded to all similarly situated county historical society 
employees and, once established, must continue as long as a 
person is an employee of the county historical society and is 
not excluded under subdivision 2b; 
    (16) employees of an economic development authority created 
or operating under sections 458C.01 469.090 to 458C.23 
469.108; 
    (17) employees of the department of military affairs of the 
state of Minnesota who are full-time firefighters. 
    Sec. 37.  Minnesota Statutes 1988, section 383B.229, is 
amended to read: 
    383B.229 [EXISTING HEALTH SERVICE PROGRAMS NOT AFFECTED.] 
    Sections 383B.211 to 383B.229 do not affect the eligibility 
authority of any statutory or home rule charter city of the 
first or second class to receive a subsidy pursuant to the 
provisions of section 145.917 or otherwise affect the authority 
of any such city to operate or to continue to operate a health 
service program. 
    Sec. 38.  Minnesota Statutes 1988, section 383B.77, is 
amended to read: 
    383B.77 [HENNEPIN COUNTY HOUSING AND REDEVELOPMENT 
AUTHORITY.] 
    Subdivision 1.  [CREATION.] The Hennepin county housing and 
redevelopment authority is created in the county of Hennepin. It 
shall have all of the powers and duties of a housing and 
redevelopment authority under the municipal housing and 
redevelopment act, sections 462.411 to 462.716 469.001 to 
469.047.  For the purposes of applying the municipal housing and 
redevelopment act to Hennepin county, the county has all of the 
powers and duties of a municipality city, the county board has 
all the powers and duties of a governing body, the chair of the 
county board has all of the powers and duties of a mayor, and 
the area of operation includes the area within the territorial 
boundaries of the county. 
    Subd. 2.  [LIMITATION.] This section does not limit or 
restrict any existing housing and redevelopment authority or 
prevent a municipality from creating an authority.  For purposes 
of this subdivision, "municipal housing and redevelopment 
authority" includes any municipal department, agency, or 
authority of the city of Minneapolis which exercises the powers 
of a municipal housing and redevelopment authority pursuant to 
section 462.425 469.003 or other law.  The county authority 
shall not exercise its powers in a municipality where 
a municipal housing and redevelopment authority is established 
pursuant to section 462.425 469.003, except as provided in this 
subdivision.  If a municipal city housing and redevelopment 
authority requests the county housing and redevelopment 
authority to exercise any power or perform any function of the 
municipal authority, the county authority may do so. 
    Subd. 3.  [LOCAL APPROVAL.] If a housing or redevelopment 
project is undertaken in Hennepin county pursuant to this 
section, the governing body of the city must approve the project 
before it is undertaken. 
    Sec. 39.  Minnesota Statutes 1988, section 383C.331, is 
amended to read: 
    383C.331 [DUTIES OF PURCHASING AGENT.] 
    The county purchasing agent of any such county shall:  
    (a)  purchase or contract for all supplies, materials, 
equipment and contractual services required by any department, 
board, commission, or agency of the county government, subject 
to the provisions set forth in sections 383C.33 to 383C.34; 
    (b)  enforce standard specifications established in 
accordance with section 383C.339 and which shall apply to all 
supplies, materials and equipment purchased for the use of the 
county government; 
    (c) (b) negotiate leases for all grounds, buildings, office 
or other space required by all county departments, boards, 
commissions, or agencies; 
    (d) (c) have charge of all central storerooms now operated 
by, or hereafter established by the county government or any 
department, board, commission, or agency thereof; 
    (e) (d) transfer to or between county departments, boards, 
commissions, and agencies, or sell supplies, materials, and 
equipment which are surplus, obsolete, or unused; and 
    (f) (e) establish and operate a central duplicating and 
mailing room for the county departments, boards, commissions, 
and agencies at the county seat. 
    Sec. 40.  Minnesota Statutes 1988, section 383C.334, is 
amended to read: 
    383C.334 [PURCHASES; CONTRACTS; LIMITATIONS.] 
    All purchases of, and contracts for, supplies, materials 
equipment or contractual services, and all sales of personal 
property which has become obsolete and unusable, shall be based 
wherever possible on competitive bids.  If the amount of the 
expenditure or sale is estimated to exceed $1,000, sealed bids 
shall be solicited by public notice inserted at least once in a 
newspaper of general circulation and at least five calendar days 
before the final date of submitting bids.  Such notice shall 
include a general description of the commodities or contractual 
services to be purchased, or personal property to be sold, and 
shall state where bid blanks and specifications may be obtained 
and the time and place for the opening of bids.  The county 
purchasing agent shall also solicit sealed bids by sending 
requests by mail to prospective suppliers and by posting notice 
on a public bulletin board in the purchasing agent's office. 
    All purchases or sales of less than $1,000 in amount shall 
be made in the open market without newspaper notice, but shall 
wherever possible be based on at least three competitive bids.  
    Sales shall be made to the highest responsible bidder.  
    Bids on purchases shall in all cases be based on such 
standard specifications as may be adopted by the board of 
standardization in accordance with the provisions of section 
383C.339.  The purchasing agent shall accept the lowest bid and 
award the contract to such lowest bidder unless the agent on 
account of the quality or character of the goods, materials, or 
supplies proposed to be furnished by the lowest bidder or 
because of the financial responsibility and reputation of said 
bidder, deems it not to the best advantage of the county to 
accept such bid, and, in the case of capital expenditures, the 
agent shall present to the county board, or to the interested 
board or commission, as the case may be, a written statement of 
the reasons why such lowest bid should not be accepted and shall 
advise the appropriate body which bid in the purchasing agent's 
judgment is to the best advantage of the county, and the county 
board or such interested board or commission, may thereupon 
concur with the agent to accept the recommended bid or reject 
all bids.  All bids may be rejected and new bids solicited if 
the public interest shall be served thereby.  If all bids 
received on a pending contract are for the same unit price or 
total amount, the county purchasing agent shall have authority 
to award the contract to one of the tie bidders by drawing lots 
in public, or to reject all bids and to purchase the required 
supplies, materials, equipment or contractual services in the 
open market, provided the price paid in the open market shall 
not exceed the lowest responsible bid.  It shall be the duty of 
the purchasing agent to discourage uniform bidding and to 
endeavor to obtain as full and open competition as possible on 
all purchases and sales.  Each bid, with the name of the bidder, 
shall be entered on a record, and each record with the 
successful bid indicated thereon, shall, after the award of the 
order or contract, be open to public inspection.  
    All contracts shall be approved as to form by the county 
attorney and a copy of each contract shall be filed with the 
county auditor of any such county. 
    Sec. 41.  Minnesota Statutes 1988, section 469.0721, is 
amended to read: 
    469.0721 [CANNON FALLS; REDWOOD FALLS; PORT AUTHORITY.] 
    Each of the cities of Cannon Falls and Redwood Falls may, 
by adoption of an enabling resolution in compliance with the 
procedural requirements of section 469.0723, establish a port 
authority commission that, subject to section 469.0722, has the 
same powers as a port authority established under section 458.09 
469.049, or other law, and a housing and redevelopment authority 
established under chapter 462 469, or other law, and is an 
agency that may administer one or more municipal development 
districts under section 472A.10 469.131.  The port authority 
commission may exercise any of these powers within industrial 
development districts or within other property under the 
jurisdiction of the commission.  The port authority commission 
may enter into agreements with nonprofit organizations or 
corporations, including, but not limited to, joint venture and 
limited partnership agreements, in order to carry out its 
purposes.  If a city establishes a port authority commission 
under this section, the city shall exercise all the powers in 
dealing with a port authority that are granted to a city by 
chapter 458, and all powers in dealing with a housing and 
redevelopment authority that are granted to a city by chapter 
462, or other law. 
    Sec. 42.  Minnesota Statutes 1988, section 469.121, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ACCOUNT CREATED.] In the economic 
development fund created in continued by section 116M.06, 
subdivision 4 116J.968, there is created a Minnesota account, to 
be used by the authority in the manner and for the purposes 
provided in sections 469.109 to 469.123. 
    Sec. 43.  Minnesota Statutes 1988, section 469.129, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL OBLIGATION BONDS.] The governing 
body may authorize, issue, and sell general obligation bonds to 
finance the acquisition and betterment of real and personal 
property needed to carry out the development program within the 
development district together with all relocation costs 
incidental thereto.  The bonds shall mature within 30 years from 
the date of issue and shall be issued in accordance with 
sections 475.51, 475.53, 475.54, 475.55, 475.56, 475.60, 475.61, 
475.62, 475.63, 475.65, 475.66, 475.69, 475.70, 475.71.  All tax 
increments received by the city pursuant to Minnesota 
Statutes 1986 1978, section 472A.08, shall be pledged for the 
payment of these bonds and used to reduce or cancel the taxes 
otherwise required to be extended for that purpose.  The bonds 
shall not be included when computing the city's net debt.  Bonds 
shall not be issued under this paragraph subsequent to August 1, 
1979. 
    Sec. 44.  Minnesota Statutes 1988, section 471.562, 
subdivision 4, is amended to read: 
    Subd. 4.  [PROJECT.] "Project" means an industrial 
development district as defined in section 458.191 469.058, 
subdivision 1; a project as defined in section 462.421 469.002, 
subdivision 14 12; a development district as defined in chapter 
472A sections 469.124 to 469.134 or any special law; or a 
project as defined in section 474.02, subdivision 1, 1a, or 
1b 469.153, subdivision 2. 
    Sec. 45.  Minnesota Statutes 1988, section 471.563, is 
amended to read: 
    471.563 [USES OF LOAN REPAYMENTS.] 
    Subject to any restrictions imposed on their use by any 
related federal or state grant, economic development loan 
repayments, and the proceeds of any bonds issued pursuant to 
section 471.564 may be applied by a municipality to any of the 
following purposes:  
    (1) to finance or otherwise pay the costs of a project; 
    (2) to pay principal and interest on any bonds issued 
pursuant to section 273.77 469.178, with respect to a project, 
certification of which is requested before August 1, 1987, or 
pursuant to chapter 474, 458, 462, or section 471.564, to 
purchase insurance or other credit enhancement for any of those 
obligations or to create or maintain reserves therefor; or 
    (3) for any other purpose authorized by law.  
    If economic development loan repayments are used to pay 
principal or interest on any such obligations, the municipality 
may be reimbursed for the amount so applied with interest not 
exceeding the rate of interest on the obligations from 
subsequent collections of taxes or other revenues that had been 
designated as the primary source of payment of the obligations. 
    Sec. 46.  Minnesota Statutes 1988, section 474A.02, 
subdivision 18, is amended to read: 
    Subd. 18.  [NOTICE OF ENTITLEMENT ALLOCATION.] "Notice of 
entitlement allocation" means a notice provided to an 
entitlement issuer under section 474.04 474A.04, subdivision 5. 
    Presented to the governor May 19, 1989 
    Signed by the governor May 23, 1989, 6:05 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes