Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 271-S.F.No. 481 
           An act relating to state government; financing the 
          beginning farmer loan program; regulating certain 
          administrative duties of the commissioner of finance; 
          permitting certain financial arrangements; amending 
          Minnesota Statutes 1988, sections 16A.065; 16A.27, 
          subdivision 5; 16A.58; 16A.631; 16A.641, subdivision 
          7; 16A.661, subdivision 7; 16A.85, subdivisions 1 and 
          3; 41B.19, subdivision 5; 41B.195; 115A.58, 
          subdivisions 1, 3, 4, and 5; 115A.59; 116.16, 
          subdivisions 1, 2, 3, 4, 5, and 9; 116.17, 
          subdivisions 1, 3, and 5; 116.18, subdivisions 1, 4, 
          5, and 6; 124.42, subdivision 3; 136C.44; 216C.37, 
          subdivision 6; 246.50, subdivision 5; 246.64, 
          subdivision 1; and Laws 1987, chapter 396, article 12, 
          section 10; repealing Minnesota Statutes 1988, 
          sections 84B.08; 85A.04, subdivision 2; 115A.57; 
          136C.42; 136C.43, subdivisions 1, 2, and 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 16A.065, is 
amended to read: 
    16A.065 [PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES 
DOCUMENTS.] 
    Despite section 16A.41, subdivision 1, the commissioner may 
allow an agency to make advance deposits or payments for 
software or software maintenance services for state-owned or 
leased electronic data processing equipment, for sole source 
maintenance agreements where it is not cost effective to pay in 
arrears, for exhibit booth space rental when required by the 
renter to guarantee the availability of space, for registration 
fees where advance payment is required or advance payment 
discount is provided, and for newspaper, magazine, and other 
subscription fees customarily paid for in advance.  The 
commissioner may also allow advance deposits by any department 
with the Library of Congress and federal Supervisor of Documents 
for items to be purchased from those federal agencies. 
    Sec. 2.  Minnesota Statutes 1988, section 16A.27, 
subdivision 5, is amended to read: 
    Subd. 5.  [CHARGES, COMPENSATING BALANCES.] The 
commissioner may agree to pay a depository a reasonable charge 
or, to keep maintain appropriate compensating balances there 
with the depository, or purchase noninterest bearing 
certificates of deposit from the depository for performing 
depository related services. 
    Sec. 3.  Minnesota Statutes 1988, section 16A.58, is 
amended to read: 
    16A.58 [COMMISSIONER CUSTODIAN OF PAYMENT DOCUMENTS.] 
    The commissioner is the custodian of original documents on 
which money has been or may be paid out of or received in the 
state treasury.  
    Sec. 4.  Minnesota Statutes 1988, section 16A.631, is 
amended to read:  
    16A.631 [STATE BUILDING BOND PROCEEDS FUND.] 
    The state building bond proceeds fund is established to 
receive state bond proceeds appropriated to agencies to acquire 
and to better public land and buildings and other public 
improvements of a capital nature, as authorized by the 
constitution, article XI, section 5, clause (a).  
    Sec. 5.  Minnesota Statutes 1988, section 16A.641, 
subdivision 7, is amended to read: 
    Subd. 7.  [CREDIT OF PROCEEDS.] (a) Proceeds of bonds 
issued under each law must be credited by the commissioner to a 
special fund, as provided in this subdivision.  
    (b) Accrued interest and any premium received on sale of 
the bonds must be credited to the state bond fund created by the 
constitution, article XI, section 7.  
    (c) Proceeds of state building bonds must be credited to 
the state building bond proceeds fund under section 16A.631.  
    (d) Proceeds of state highway bonds must be credited to the 
trunk highway fund under the constitution, article XIV, section 
6.  
    (e) Proceeds of bonds issued for programs of grants or 
loans to political subdivisions must be credited to special 
accounts in the bond proceeds fund or to special funds 
established by laws stating the purposes of the grants or loans, 
and the standards and criteria under which an executive agency 
is authorized to make them.  
    (f) Proceeds of refunding bonds must be credited to the 
state bond fund as provided in section 16A.66, subdivision 1.  
    Sec. 6.  Minnesota Statutes 1988, section 16A.661, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPLICATION AND APPROPRIATION OF PROCEEDS.] The 
proceeds of the bonds must be deposited and spent as provided in 
this subdivision and are appropriated for those purposes.  Any 
accrued interest and any premium received on the sale of the 
bonds, and any amount of bond proceeds determined by the 
commissioner to be needed to pay interest payable on the bonds 
up to 18 months following their issuance, must be credited to 
the appropriate general obligation special tax bond debt service 
account.  Except as otherwise required by law, the balance of 
the bond proceeds shall be credited to the state building bond 
proceeds fund and spent for the purposes specified in the law 
authorizing the issuance of the bonds.  So much of the proceeds 
as is necessary must be used to pay costs incurred in issuing 
and selling the bonds. 
     Sec. 7.  Minnesota Statutes 1988, section 16A.85, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORIZATION.] The commissioner of 
administration may determine, in conjunction with the 
commissioner of finance, the personal property needs of the 
various state departments, agencies, boards, and commissions of 
the kinds identified in this subdivision that may be 
economically funded through a master lease program and request 
the commissioner of finance to execute a master lease and to.  
The master lease may be used only to finance the following kinds 
of purchases: 
    (a) The master lease may be used to finance purchases by 
the commissioner of administration with money from an internal 
services fund. 
    (b) The master lease may be used to refinance a purchase of 
equipment already purchased under a lease-purchase agreement. 
    (c) The master lease may be used to finance purchases of 
large equipment with a capital value of more than $100,000 and a 
useful life of more than ten years. 
    (d) The legislature may specifically authorize a particular 
purchase to be financed using the master lease.  The legislature 
anticipates that this authorization will be given only to 
finance the purchase of major pieces of equipment with a capital 
value of more than $10,000. 
    The commissioner of finance may authorize the sale and 
issuance of certificates of participation relative to it a 
master lease in an amount sufficient to fund these personal 
property needs.  The term of the certificates must be less than 
the expected useful life of the equipment whose purchase is 
financed by the certificates.  The commissioner of 
administration may use the proceeds from the master lease or the 
sale of the certificates of participation to acquire the 
personal property through the appropriate procurement procedure 
in chapter 16B.  Money appropriated for the lease or acquisition 
of this personal property is appropriated to the commissioner of 
finance to pay principal and interest coming due on the 
certificates of participation make master lease payments. 
    Sec. 8.  Minnesota Statutes 1988, section 16A.85, 
subdivision 3, is amended to read: 
    Subd. 3.  [MASTER LEASES NOT DEBT.] The commissioner of 
finance may not enter into a master lease unless the 
commissioner of finance has conducted a demand survey of the 
amount of projected rentals and determines that money has been 
appropriated and allotted for the payment of the maximum amount 
of rentals that are projected to be payable from state money and 
that are projected to be due or to become due during the 
appropriation period in which the lease contract is entered 
into.  A master lease does not constitute or create a general or 
moral obligation or indebtedness of the state in excess of the 
money from time to time appropriated or otherwise available for 
the payment of rent coming due under the lease, and the state 
has no continuing obligation to appropriate money for the 
payment of rent or other obligations under the lease.  Rent due 
under a master lease during a current lease term for which money 
has been appropriated is a current expense of the state. 
    Sec. 9.  Minnesota Statutes 1988, section 41B.19, 
subdivision 5, is amended to read: 
    Subd. 5.  [RURAL FINANCE AUTHORITY SECURITY ACCOUNT.] The 
commissioner of finance shall maintain a separate state building 
fund account designated as the rural finance authority security 
account, into which must be deposited the proceeds of the rural 
renewal general obligation bonds issued as provided in this 
section.  The commissioner of finance shall maintain a separate 
bookkeeping account to record receipts and disbursements of 
money transferred to or from the security account and to record 
income from the investment of money in the account.  Upon the 
written request of the authority, the commissioner of finance 
shall transfer from the security account to an account or 
accounts the authority shall designate, a sum of money 
sufficient in amount, if available, when added to the balances 
then on hand in the designated accounts, to pay bonds issued by 
the authority under sections 41B.01 to 41B.23 and the interest 
on them due and to become due on the next succeeding date for 
the payment of the principal of and interest on the bonds of the 
authority or to restore to any debt service reserve fund 
established in connection with the bonds any amount withdrawn 
from the debt service reserve account to pay the bonds.  When no 
revenue bonds secured by the security account are outstanding 
under the resolution authorizing their issuance, the 
commissioner of finance shall transfer all money and securities 
on hand in the security account to the state bond fund. 
    Sec. 10.  Minnesota Statutes 1988, section 41B.195, is 
amended to read:  
    41B.195 [ADDITIONAL USE OF GENERAL OBLIGATION BONDS.] 
    Notwithstanding the limit set forth in section 41B.19, 
subdivision 1, the commissioner of finance, upon the request of 
the rural finance authority, may issue the general obligation 
bonds authorized by section 41B.19 and use the proceeds of the 
bonds to purchase participations in qualified agricultural loans 
if the commissioner determines that it is not practical or 
efficient to issue revenue bonds under section 41B.08 for the 
purpose of sections 41B.025, subdivision 5, 41B.037, 41B.038, 
and 41B.04 as a result of reduced program size or increased 
program costs.  Subject to the other provisions of this section, 
the proceeds of the bonds must be deposited, held, and disbursed 
from a separate state building fund account, the bonds are 
payable from the bond account established by section 41B.19, 
subdivision 4, and the participations purchased with the bond 
proceeds must be held as assets of the bond account.  If the 
rural finance authority later determines to issue revenue bonds 
under section 41B.08 for the purposes specified in section 
41B.04, the commissioner may by order provide for the transfer 
of all or a portion of the remaining bond proceeds and interest 
on them, and all or a portion of the participations purchased 
with the bond proceeds and proceeds of them, to be transferred 
to the security account established in section 41B.19, 
subdivision 5, and used for the purposes specified in section 
41B.19, subdivisions 1 and 5. 
    Sec. 11.  Minnesota Statutes 1988, section 115A.58, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY TO ISSUE BONDS.] The 
commissioner of finance shall sell bonds of the state of 
Minnesota for the prompt and full payment of which, together 
with interest, the full faith, credit, and taxing powers of the 
state are irrevocably pledged.  Bonds shall be sold only upon 
request of the board and in the amount as may otherwise be 
authorized by this or a subsequently enacted law which 
authorizes the sale of additional bonds and the deposit of the 
proceeds in the state a waste management account in the bond 
proceeds fund.  Any authorized amount of bonds in this law or 
any subsequently enacted law authorizing the issuance of bonds 
for the purposes of the state waste management fund account, 
together with this section, constitute complete authority for 
the issue.  The bonds shall not be subject to restrictions or 
limitations contained in any other law.  
    Sec. 12.  Minnesota Statutes 1988, section 115A.58, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXPENSES.] All expenses incidental to the sale, 
printing, execution, and delivery of bonds pursuant to this 
section, including but not limited to actual and necessary 
travel and subsistence expenses of state officers and employees 
for these purposes, and any expenses of litigation relating to 
the validity of the bonds, shall be paid from the waste 
management fund account, and the amounts necessary are 
appropriated from that fund account.  
    Sec. 13.  Minnesota Statutes 1988, section 115A.58, 
subdivision 4, is amended to read: 
    Subd. 4.  [DEBT SERVICE ACCOUNT IN THE STATE WASTE 
MANAGEMENT FUND.] The commissioner of finance shall maintain in 
the Minnesota state waste management state bond fund a separate 
account to be called the state waste management debt service 
account.  It shall record receipts of premium and accrued 
interest, loan repayments, project revenue or other money 
transferred to the fund and income from the investment of the 
money and record any disbursements to pay the principal and 
interest on waste management bonds.  Income from investment 
shall be credited to the account in each fiscal year.  The 
amount credited shall be equal to the average return that year 
on all funds invested by the state treasurer, as determined by 
the treasurer, times the average balance in the account that 
year.  
    Sec. 14.  Minnesota Statutes 1988, section 115A.58, 
subdivision 5, is amended to read: 
    Subd. 5.  [APPROPRIATIONS TO DEBT SERVICE ACCOUNT; 
APPROPRIATION FROM ACCOUNT TO PAY DEBT SERVICE.] The premium and 
accrued interest received on each issue of Minnesota state waste 
management bonds, and all payments received in repayment of 
loans and other revenues received are appropriated to the debt 
service account.  All income from the investment of the 
Minnesota state waste management account in the bond proceeds 
fund is appropriated to the debt service account.  In order to 
reduce the amount of taxes otherwise required to be levied, 
there is also appropriated to the debt service account from any 
funds available in the general fund on November 1 in each year, 
a sum of money sufficient in amount, when added to the balance 
then on hand, to pay all principal and interest on Minnesota 
waste management bonds due and to become due before July 1 in 
the second ensuing year.  So much of the debt service account of 
the state waste management fund as is necessary to pay principal 
and interest on waste management bonds is annually appropriated 
from the debt service account for the payment of principal and 
interest of the waste management bonds.  All funds appropriated 
by this subdivision shall be available in the debt service 
account prior to any levy of the tax in any year required by the 
Minnesota Constitution, article XI, section 7.  
    Sec. 15.  Minnesota Statutes 1988, section 115A.59, as 
amended to read:  
    115A.59 [BOND AUTHORIZATION AND APPROPRIATION OF PROCEEDS.] 
    The commissioner of finance is authorized, upon request of 
the board, to sell Minnesota state waste management bonds in the 
amount of up to $8,800,000 for the purpose of the waste 
processing facility capital assistance program under section 
115A.54, and in the amount of up to $6,200,000 for the purpose 
of acquiring real property and interests in real property for 
hazardous waste facility sites and buffer areas as authorized by 
section 115A.06, subdivision 4.  The bonds shall be sold in the 
manner and upon the conditions prescribed in section 115A.58 
sections 16A.631 to 16A.675, and in the Minnesota Constitution, 
article XI, sections 4 to 7. The proceeds of the bonds, except 
as provided in section 115A.58, subdivision 5, are appropriated 
to the Minnesota state waste management fund.  The amount of 
bonds issued pursuant to this authorization shall not exceed at 
any time the amount needed to produce a balance in the waste 
management fund account equal to the aggregate amount of the 
loans and grants then approved and not previously disbursed, 
plus the amount of the loans and grants to be approved in the 
current and the following fiscal year, as estimated by the board.
    Sec. 16.  Minnesota Statutes 1988, section 116.16, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSE.] A Minnesota state water 
pollution control fund is created as a separate bookkeeping 
account in the general books of account of the state, to record 
receipts of the proceeds of state bonds and other money 
appropriated to the fund and disbursements of money appropriated 
or loaned from the fund program is created to provide money to 
be granted or loaned to agencies and subdivisions of the state 
for the acquisition and betterment of public land, buildings, 
and improvements of a capital nature needed for the prevention, 
control, and abatement of water pollution in accordance with the 
long-range state policy, plan, and program established in 
sections 115.41 to 115.63, and in accordance with standards 
adopted pursuant to law by the Minnesota pollution control 
agency.  It is determined that state financial assistance for 
the construction of water pollution prevention and abatement 
facilities for municipal disposal systems and combined sewer 
overflow is a public purpose and a proper function of state 
government, in that the state is trustee of the waters of the 
state and such financial assistance is necessary to protect the 
purity of state waters, and to protect the public health of the 
citizens of the state, which is endangered whenever pollution 
enters state waters at one point and flows to other points in 
the state. 
    Sec. 17.  Minnesota Statutes 1988, section 116.16, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] In this section and sections 
116.17 and 116.18: 
    (1) Agency means the Minnesota pollution control agency 
created by this chapter; 
    (2) Municipality means any county, city, and town, the 
metropolitan waste control commission established in chapter 473 
and the metropolitan council when acting under the provisions of 
that chapter or an Indian tribe or an authorized Indian tribal 
organization, and any other governmental subdivision of the 
state responsible by law for the prevention, control, and 
abatement of water pollution in any area of the state; 
    (3) Water pollution control fund program means the 
Minnesota state water pollution control fund program created by 
subdivision 1; 
    (4) Bond account means the Minnesota state water pollution 
control bond account created in the state bond fund by section 
116.17, subdivision 4; 
    (5) Terms defined in section 115.01 have the meanings 
therein given them; 
    (6) The eligible cost of any municipal project, except as 
otherwise provided in clauses (7) and (8), includes (a) 
preliminary planning to determine the economic, engineering, and 
environmental feasibility of the project; (b) engineering, 
architectural, legal, fiscal, economic, sociological, project 
administrative costs of the agency and the municipality, and 
other investigations and studies; (c) surveys, designs, plans, 
working drawings, specifications, procedures, and other actions 
necessary to the planning, design, and construction of the 
project; (d) erection, building, acquisition, alteration, 
remodeling, improvement, and extension of disposal systems; (e) 
inspection and supervision of construction; and (f) all other 
expenses of the kinds enumerated in section 475.65; 
     (7) For state independent grant and matching grant purposes 
hereunder, the eligible cost for grant applicants shall be the 
eligible cost as determined by the United States environmental 
protection agency under the Federal Water Pollution Control Act, 
United States Code, title 33, sections 1281 to 1299; 
     (8) Notwithstanding clause (7), for state grants under the 
state independent grants program, the eligible cost includes the 
acquisition of land for stabilization ponds, the construction of 
collector sewers for totally unsewered statutory and home rule 
charter cities and towns described under section 368.01, 
subdivision 1 or 1a, that are in existence on January 1, 1985, 
and the provision of reserve capacity sufficient to serve the 
reasonable needs of the municipality for 20 years in the case of 
treatment works and 40 years in the case of sewer systems.  
Notwithstanding clause (7), for state grants under the state 
independent grants program, the eligible cost does not include 
the provision of service to seasonal homes, or cost increases 
from contingencies that exceed three percent of as-bid costs or 
cost increases from unanticipated site conditions that exceed an 
additional two percent of as-bid costs; 
     (9) Authority means the Minnesota public facilities 
authority established in section 446A.03. 
    Sec. 18.  Minnesota Statutes 1988, section 116.16, 
subdivision 3, is amended to read: 
    Subd. 3.  [RECEIPTS.] The commissioner of finance and 
treasurer shall deposit in the state treasury and credit to a 
separate account in the bond proceeds fund as received (a) all 
proceeds of Minnesota water pollution control bonds, except 
accrued interest and premiums received upon the sale thereof, 
(b) all other money appropriated by law for purposes stated in 
subdivision 1, and (c).  All money granted to the state for such 
purposes by the federal government or any agency thereof must be 
credited to a separate account in the federal fund.  All such 
receipts are annually appropriated for the permanent 
construction and improvement purposes of the fund water 
pollution control program, and shall be and remain available for 
expenditure in accordance with this section and federal law 
until the purposes for which such appropriations were made have 
been accomplished or abandoned. 
    Sec. 19.  Minnesota Statutes 1988, section 116.16, 
subdivision 4, is amended to read: 
    Subd. 4.  [DISBURSEMENTS.] Disbursements from the fund for 
the water pollution control program shall be made by the state 
treasurer upon order of the commissioner of finance at the times 
and in the amounts requested by the agency or the Minnesota 
public facilities authority in accordance with the applicable 
state and federal law governing such disbursements; except that 
no appropriation or loan of state funds for any project shall be 
disbursed to any municipality until and unless the agency has by 
resolution determined the total estimated cost of the project, 
and ascertained that financing of the project is assured by: 
    (1) a grant to the municipality by an agency of the federal 
government within the amount of funds then appropriated to that 
agency and allocated by it to projects within the state; or 
    (2) a grant of funds appropriated by state law; or 
    (3) a loan authorized by state law; or 
    (4) the appropriation of proceeds of bonds or other funds 
of the municipality to a fund for the construction of the 
project; or 
    (5) any or all of the means referred to in paragraphs (1) 
to (4); and 
    (6) an irrevocable undertaking, by resolution of the 
governing body of the municipality, to use all funds so made 
available exclusively for the construction of the project, and 
to pay any additional amount by which the cost of the project 
exceeds the estimate, by the appropriation to the construction 
fund of additional municipal funds or the proceeds of additional 
bonds to be issued by the municipality; and 
     (7) conformity of the project and of the loan or grant 
application with the state water pollution control plan as 
certified to the federal government and with all other 
conditions under applicable state and federal law for a grant of 
state or federal funds of the nature and in the amount involved. 
    Sec. 20.  Minnesota Statutes 1988, section 116.16, 
subdivision 5, is amended to read: 
    Subd. 5.  [RULES.] (a) The agency shall promulgate 
permanent rules and may promulgate emergency rules for the 
administration of grants and loans authorized to be made from 
the fund or from federal funds under the Federal Water Pollution 
Control Act under the water pollution control program, which 
rules, however, shall not be applicable to the issuance of bonds 
by the commissioner of finance as provided in section 116.17.  
The rules shall contain as a minimum: 
    (1) procedures for application by municipalities; 
    (2) conditions for the administration of the grant or loan; 
    (3) criteria for the ranking of projects in order of 
priority for grants or loans, based on factors including the 
extent and nature of pollution, technological feasibility, 
assurance of proper operation, maintenance and replacement, and 
participation in multimunicipal systems; and 
    (4) such other matters as the agency and the commissioner 
find necessary to the proper administration of the grant program.
    (b) Except as otherwise provided in sections 116.16 to 
116.18, the rules for the administration of state independent 
grants must comply, to the extent practicable, with provisions 
relating directly to protection of the environment contained in 
the Federal Water Pollution Control Act, as amended, and 
regulations and guidelines of the United States environmental 
protection agency promulgated under the act, except provisions 
regarding allocation contained in section 205 of the act and 
regulations and guidelines promulgated under section 205 of the 
act.  This provision does not require approval from federal 
agencies for the issuance of grants or for the construction of 
projects under the state independent grants program. 
     (c) For purposes of awarding independent state grants, the 
agency may by rule waive the federal 20-year planning 
requirement for municipalities with a population of less than 
1,500. 
    Sec. 21.  Minnesota Statutes 1988, section 116.16, 
subdivision 9, is amended to read: 
    Subd. 9.  [APPLICATIONS.] Applications by municipalities 
for grants or loans from the fund under the water pollution 
control program shall be made to the authority on forms 
requiring information prescribed by rules of the agency.  The 
authority shall send the application to the agency within ten 
days of receipt.  The commissioner shall certify to the 
authority those applications which appear to meet the criteria 
set forth in sections 116.16 to 116.18 and the rules promulgated 
hereunder, and the authority shall award the grants or loans on 
the basis of the criteria and priorities established by the 
agency in its rules and in sections 116.16 to 116.18.  A 
municipality that is designated under agency rules to receive 
state or federal funding for a project and that does not make a 
timely application for or that refuses the funding is not 
eligible for either state or federal funding for that project in 
that fiscal year or the subsequent year.  
    Sec. 22.  Minnesota Statutes 1988, section 116.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSE AND APPROPRIATION.] For the 
purpose of providing money to be appropriated or loaned to 
municipalities from under the Minnesota state water pollution 
control fund program for the acquisition and betterment of 
public land, buildings, and improvements of a capital nature 
needed for the prevention, control, and abatement of water 
pollution in accordance with the provisions of section 116.16, 
when such appropriations or loans are authorized by law and 
funds therefor are requested by the agency, the commissioner of 
finance shall sell and issue bonds of the state of Minnesota for 
the prompt and full payment of which, with interest thereon, the 
full faith, credit, and taxing powers of the state are 
irrevocably pledged.  Bonds shall be issued pursuant to this 
section only as authorized by a law specifying the purpose 
thereof and the maximum amount of the proceeds authorized to be 
expended for this purpose.  Any act authorizing the issuance of 
bonds for this purpose, together with this section, constitutes 
complete authority for such issue, and such bonds shall not be 
subject to restrictions or limitations contained in any other 
law.  
    Sec. 23.  Minnesota Statutes 1988, section 116.17, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXPENSES.] All expenses incidental to the sale, 
printing, execution, and delivery of bonds pursuant to this 
section, including but not limited to actual and necessary 
travel and subsistence expenses of state officers and employees 
for such purposes, and any expenses of litigation relating to 
the validity of the bonds, shall be paid from the pollution 
control bond proceeds fund, and the amounts necessary therefor 
are appropriated from that fund; provided that if any amount is 
specifically appropriated for this purpose in an act authorizing 
the issuance of bonds pursuant to this section, such expenses 
shall be limited to the amount so appropriated.  
    Sec. 24.  Minnesota Statutes 1988, section 116.17, 
subdivision 5, is amended to read: 
    Subd. 5.  [APPROPRIATIONS TO BOND ACCOUNT.] The premium and 
accrued interest received on each issue of Minnesota state water 
pollution control bonds, and all loan payments received under 
the provisions of section 116.16, subdivision 5, shall be 
credited to the bond account.  All income from the investment of 
the Minnesota state water pollution control fund bond proceeds, 
shall also be credited to the bond account identified in 
Minnesota Statutes 1971, section 116.16.  In order to reduce the 
amount of taxes otherwise required to be levied, there shall 
also be credited to the bond account therein from the general 
fund in the state treasury, on November 1 in each year, a sum of 
money sufficient in amount, when added to the balance then on 
hand therein, to pay all Minnesota water pollution control bonds 
and interest thereon due and to become due to and including July 
1 in the second ensuing year.  All money so credited and all 
income from the investment thereof is annually appropriated to 
the bond account for the payment of such bonds and interest 
thereon, and shall be available in the bond account prior to the 
levy of the tax in any year required by the Constitution, 
article XI, section 7.  The commissioner of finance and 
treasurer are directed to make the appropriate entries in the 
accounts of the respective funds. 
    Sec. 25.  Minnesota Statutes 1988, section 116.18, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPROPRIATION FROM THE FUND.] The sum of 
$167,000,000, or so much thereof as may be necessary, is 
appropriated from the Minnesota state water pollution control 
bond proceeds fund in the state treasury to the pollution 
control agency, for the period commencing on July 23, 1971, to 
be granted and disbursed to municipalities and agencies of the 
state in aid of the construction of projects conforming to 
section 116.16, in accordance with the rules, priorities, and 
criteria therein described.  
    Sec. 26.  Minnesota Statutes 1988, section 116.18, 
subdivision 4, is amended to read: 
    Subd. 4.  [BOND AUTHORIZATION.] For the purpose of 
providing money appropriated in subdivision 1 for expenditure 
from the Minnesota state water pollution control fund through 
grants to municipalities and agencies of the state for the 
acquisition and betterment of public land, buildings, and 
improvements of a capital nature needed for the prevention, 
control, and abatement of water pollution, the commissioner of 
finance is authorized upon request of the pollution control 
agency to sell and issue Minnesota state water pollution control 
bonds in the amount of $156,000,000, in the manner and upon the 
conditions prescribed in section 116.17 and in the Constitution, 
article XI, sections 4 to 7.  The proceeds of the bonds, except 
as provided in section 116.17, subdivision 5, are appropriated 
and shall be credited to the a Minnesota state water pollution 
control account in the bond proceeds fund.  The amount of bonds 
issued pursuant to this authorization shall not exceed at any 
time the amount needed to produce a balance in the water 
pollution control fund account equal to the aggregate amount of 
grants then approved and not previously disbursed, plus the 
amount of grants to be approved in the current and the following 
fiscal year, as estimated by the pollution control agency. 
    Sec. 27.  Minnesota Statutes 1988, section 116.18, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEDERAL AND OTHER FUNDS.] All federal and other 
funds made available for any purpose of the water pollution 
control fund program are also appropriated to that fund for the 
program. 
    Sec. 28.  Minnesota Statutes 1988, section 116.18, 
subdivision 6, is amended to read: 
    Subd. 6.  [CONTINUANCE OF APPROPRIATIONS.] None of the 
appropriations made in this section shall lapse until the 
purpose for which it is made has been accomplished or 
abandoned.  The amount of each grant approved for disbursement 
from the water pollution control fund program shall be and 
remain appropriated for that purpose until the grant is fully 
disbursed or part or all thereof is revoked by the pollution 
control agency. 
    Sec. 29.  Minnesota Statutes 1988, section 124.42, 
subdivision 3, is amended to read: 
    Subd. 3.  On or before December 1, The commissioner shall 
issue to each district whose note has been so received a warrant 
on the debt service loan account of the maximum effort school 
loan fund, payable on presentation to the state treasurer out of 
any money in such account.  The warrant shall be issued by the 
commissioner in sufficient time to coincide with the next date 
on which the district is obligated to make principal or interest 
payments on its bonded debt in the ensuing year.  Interest shall 
accrue from the date such warrant is issued.  The proceeds 
thereof shall be used by the district to pay principal or 
interest on its bonded debt falling due in the ensuing year.  
    Sec. 30.  Minnesota Statutes 1988, section 136C.44, is 
amended to read: 
    136C.44 [VOCATIONAL TECHNICAL BUILDING APPROPRIATIONS.] 
    Money appropriated from the state building fund to the 
state board of vocational technical education for post-secondary 
vocational technical construction in school districts shall be 
used for grants to school districts for the acquisition and 
betterment of land, buildings, and capital improvements for 
technical institutes.  These grants shall only be made upon the 
conditions and in accordance with all standards and criteria 
established in state board rules and in the legislative act 
authorizing the specific post-secondary vocational facilities 
project.  A grant shall cover 85 percent of the cost of the 
post-secondary vocational facilities authorized by the specific 
legislative act, and 15 percent of the cost of these facilities 
shall be financed by the school district operating the technical 
institute, unless otherwise provided by the specific legislative 
act.  A grant to a joint vocational technical district formed 
under sections 136C.60 to 136C.69 must cover 100 percent of the 
cost, unless otherwise provided by the specific legislative 
act.  No local bonds shall be authorized, issued, or sold, nor 
shall any election be held to authorize the issuance of bonds, 
if the proceeds will be used to finance a project for which 
specific legislative approval is required, until after that 
specific legislative approval has been given. 
    Sec. 31.  Minnesota Statutes 1988, section 216C.37, 
subdivision 6, is amended to read: 
    Subd. 6.  [RECEIPTS; APPROPRIATION.] The commissioner of 
finance shall deposit in the state treasury all principal and 
interest payments received in repayment of the loans authorized 
by this section.  These payments shall be credited to the state 
building bond proceeds fund and are appropriated to the 
commissioner of finance for the purposes of that account.  
    Sec. 32.  Minnesota Statutes 1988, section 246.50, 
subdivision 5, is amended to read: 
    Subd. 5.  [COST OF CARE.] "Cost of care" means the 
commissioner's determination of the anticipated average per 
capita cost of all maintenance, treatment and expense, including 
depreciation of buildings and equipment, interest paid on bonds 
issued for capital improvements to state facilities, and 
indirect costs related to the operation other than that paid 
from the Minnesota state building fund or the bond proceeds 
fund, at all of the state facilities during the current year for 
which billing is being made.  The commissioner shall determine 
the anticipated average per capita cost.  The commissioner may 
establish one all inclusive rate or separate rates for each 
patient or resident disability group, and may establish separate 
charges for each facility.  "Cost of care" for outpatient or day 
care patients or residents shall be on a cost for service basis 
under a schedule the commissioner shall establish. 
    For purposes of this subdivision "resident patient" means a 
person who occupies a bed while housed in a state facility for 
observation, care, diagnosis, or treatment. 
    For purposes of this subdivision "outpatient" or "day care" 
patient or resident means a person who makes use of diagnostic, 
therapeutic, counseling, or other service in a state facility or 
through state personnel but does not occupy a bed overnight. 
    For the purposes of collecting from the federal government 
for the care of those patients eligible for medical care under 
the Social Security Act "cost of care" shall be determined as 
set forth in the rules and regulations of the Department of 
Health and Human Services or its successor agency.  
    Sec. 33.  Minnesota Statutes 1988, section 246.64, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CHEMICAL DEPENDENCY RATES.] 
Notwithstanding sections 246.50, subdivision 5; 246.511; and 
251.011, the commissioner shall establish separate rates for 
each chemical dependency service operated by the commissioner 
and may establish separate rates for each service component 
within the program by establishing fees for services or 
different per diem rates for each separate chemical dependency 
unit within the program based on actual costs attributable to 
the service or unit.  The rate must allocate the cost of all 
anticipated maintenance, treatment, and expenses including 
depreciation of buildings and equipment, interest paid on bonds 
issued for capital improvements for chemical dependency 
programs, reimbursement and other indirect costs related to the 
operation of chemical dependency programs other than that paid 
from the Minnesota state building fund or the bond proceeds 
fund, and losses due to bad debt.  The rate must not include 
allocations of chaplaincy, patient advocacy, or quality 
assurance costs that are not required for chemical dependency 
licensure by the commissioner or certification for chemical 
dependency by the Joint Commission on Accreditation of 
Hospitals.  Notwithstanding any other law, the commissioner 
shall treat these costs as nonhospital department expenses. 
    Sec. 34.  Laws 1987, chapter 396, article 12, section 10, 
is amended to read: 
    Sec. 10. [RURAL FINANCE AUTHORITY.] 
    Subdivision 1.  [RURAL FINANCE AUTHORITY.] $300,000 is 
appropriated from the general fund to the rural finance 
authority for administering the beginning farmer loan program. 
    The complement of the authority is increased by three 
positions. 
    Subd. 2.  [DEBT SERVICE.] $270,000 is appropriated from the 
general fund to the rural finance authority for debt service on 
general obligation bonds issued for the beginning farmer program.
    The appropriations in this section are available until June 
30, 1989.  
    Sec. 35.  [STATE BUILDING FUND RENAMED BOND PROCEEDS FUND.] 
    The state building fund created by Minnesota Statutes 1988, 
section 16A.631, is renamed the bond proceeds fund.  A previous 
appropriation from the state building fund or the state waste 
management fund, or of bond proceeds from the Minnesota state 
water pollution control fund, is deemed to be an appropriation 
from the bond proceeds fund. 
    Sec. 36.  [REPEALER.] 
    Minnesota Statutes 1988, sections 84B.08; 85A.04, 
subdivision 2; 115A.57; 136C.42; and 136C.43, subdivisions 1, 2, 
and 3, are repealed. 
     Sec. 37.  [EFFECTIVE DATE.] 
    This act is effective July 1, 1989, except that section 34 
is effective the day following final enactment. 
    Presented to the governor May 23, 1989 
    Signed by the governor May 25, 1989, 6:38 p.m.