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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1989 

                        CHAPTER 356-H.F.No. 1616 
           An act relating to legislative enactments; providing 
          for the correction of miscellaneous oversights, 
          inconsistencies, ambiguities, unintended results, and 
          technical errors of a noncontroversial nature; 
          amending Minnesota Statutes 1988, sections 40A.122, 
          subdivision 1; 65A.375; 65B.49, subdivision 4a, as 
          amended; 80A.15, subdivision 2; 115B.02, subdivision 
          14; 116J.64, subdivision 7; 124.43, subdivision 1, as 
          amended; 176.132, subdivision 2; 216B.01; 216B.02, 
          subdivision 4; 216B.027, subdivision 2; 221.031, 
          subdivisions 2 and 2a; 237.075, subdivision 9; 273.11, 
          subdivision 8; 275.50, subdivision 2; 290.092, 
          subdivision 2; 290A.04, by adding a subdivision; 
          325E.025, subdivision 1; 325E.026, subdivision 1; 
          326.20, subdivision 2; 363.01, subdivision 32; 
          469.153, subdivision 7; 500.221, subdivision 2; Laws 
          1989, chapters 135, section 2; and 144, section 35; 
          1989 H.F. No. 59, article 2, sections 3, subdivision 
          1; and 18; article 3, section 26; article 4, sections 
          1, subdivision 3; and 18; article 9, sections 1, 
          subdivision 1; and 8; article 10, section 3; H.F. No. 
          66, article 3, section 16, subdivision 3; H.F. No. 
          372, article 1, section 28; article 3, section 58, 
          subdivision 2; H.F. No. 654, article 6, section 4, 
          subdivision 3; article 7, section 19; H.F. No. 1283, 
          section 15; H.F. No. 1532, section 1; H.F. No. 1734, 
          article 1, sections 7; 14; and 17; article 3, sections 
          6; 14; 17; 18; 21; 26; and 35; article 4, sections 11; 
          12; and 14; article 6, sections 3 and 11; article 7, 
          section 6; and 1989 S.F. No. 262, article 4, section 
          3; repealing Laws 1989, chapter 118; and 1989 H.F. No. 
          579, article 2, section 1.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 124.43, 
subdivision 1, as amended by Laws 1989, chapter 1, section 1, is 
amended to read: 
    Subdivision 1.  [REVIEW BY COMMISSIONER.] (a) The 
commissioner may, after review and a favorable recommendation by 
the state board of education, recommend to the legislature 
capital loans to school districts.  Proceeds of the loans shall 
be used only for sites for school buildings and for acquiring, 
bettering, furnishing, or equipping school buildings under 
contracts to be entered into within 12 months from and after the 
date on which each loan is granted.  
    (b) Any school board that intends to submit an application 
for a capital loan shall submit a proposal to the commissioner 
for review and comment pursuant to section 121.15 by September 1 
of any year, and the commissioner shall prepare a review and 
comment on the proposed facility, regardless of the amount of 
the capital expenditure required to construct the facility.  The 
state board shall not make a favorable recommendation on an 
application for a capital loan for any facility unless:  
    (1) the facility receives a positive review and comment 
pursuant to section 121.15; and 
    (2) the state board determines that 
    (A) the facilities are needed to replace facilities 
dangerous to the health and safety of pupils, or to provide for 
pupils for whom no adequate facilities exist; 
     (B) the facilities could not be made available through 
dissolution and attachment of the district to another district 
or through pairing, interdistrict cooperation, or consolidation 
with another district, or through the purchase or lease of 
facilities from existing institutions within the area.  The 
preference of the school district regarding reorganization shall 
not be a criterion used by the state board in determining 
whether the facilities could be made available through 
reorganization; 
    (C) the facilities are comparable in size and quality to 
facilities recently constructed in other districts of similar 
enrollment; and 
    (D) the district's need for the facilities is comparable to 
needs that comparable districts are meeting through local bond 
issues. 
    The state board may recommend that the loan be approved in 
a reduced amount in order to meet the foregoing criteria.  If 
the state board recommends that a loan not be approved, the 
commissioner shall not recommend approval of the loan.  If the 
state board recommends that the loan be approved in a reduced 
amount, the commissioner shall not recommend approval of a loan 
larger than that recommended by the state board.  
    (c) As part of reviewing an application for a capital loan, 
the commissioner of education shall prepare estimated yearly 
repayments by the school district and the estimated amount of 
principal and interest that may be forgiven after the term of 
the loan.  These estimates shall assume no growth in gross tax 
capacity over the term of the loan, shall assume a levy equal to 
16 mills times the adjusted gross tax capacity, and shall be 
prepared using a methodology approved by the commissioner of 
finance.  The commissioner of education shall use a discount 
factor provided by the commissioner of finance in determining 
the present value of the estimated amount of interest and 
principal which may be forgiven after the term of the loan.  
    (d) No loan shall be recommended for approval for any 
district exceeding an amount computed as follows: 
    (1) The amount requested by the district under subdivision 
2; 
    (2) Plus the aggregate principal amount of general 
obligation bonds of the district outstanding on June 30 of the 
year following the year the application was received, not 
exceeding the limitation on net debt of the district in section 
475.53, subdivision 4, or the following amount: 
    (i) for the period October 1, 1988, to September 30, 1989, 
197 percent of its adjusted gross tax capacity, 
    (ii) for any 12-month period beginning October 1 of any 
year after 1988, 245 percent of its adjusted net tax capacity as 
most recently determined, whichever is less; 
    (3) Less the maximum net debt permissible for the district 
on December 1 of the year the application is received, under the 
limitation in section 475.53, subdivision 4, or the following 
amount: 
    (i) for the period October 1, 1988, to September 30, 1989, 
197 percent of its adjusted gross tax capacity, 
    (ii) for any 12-month period beginning October 1 of any 
year after 1988, 245 percent of its adjusted net tax capacity as 
most recently determined, whichever is less; and 
    (4) Less any amount by which the amount voted exceeds the 
total cost of the facilities for which the loan is granted, as 
estimated in accordance with subdivision 4, provided that the 
loan may be approved in an amount computed as provided in 
clauses (1) to (3), subject to subsequent reduction in 
accordance with this clause. 
     Sec. 2.  [CORRECTION NO. 1] Laws 1989, chapter 135, section 
2, is amended to read: 
    Sec. 2.  [PRIVATE SALES OF TAX-FORFEITED LANDS; ST. LOUIS 
COUNTY.] 
    Subdivision 1.  (a) Notwithstanding Minnesota Statutes, 
section 282.018, or the public sale provisions of Minnesota 
Statutes, chapter 282, St. Louis county may sell the 
tax-forfeited lands bordering public waters and described in 
subdivision 2, to the persons indicated, by private sale for not 
less than appraised value. 
    (b) The conveyances must be in a form approved by the 
attorney general. 
    Subd. 2.  (a) The following lands located in St. Louis 
county may be sold to the persons indicated.  
    (b) St. Louis county may sell to Charlotte Ekroot, Windigo 
Lodge, Grand Marais:  that part of the Southeast Quarter of the 
Northwest Quarter of Section 9, Township 55 North, Range 12 
West, lying west of the township road.  A cabin and a tool shed 
were built on what they thought was their property.  Later 
surveys indicated that they had built on tax-forfeited property. 
    (c) St. Louis county may sell to Manson Berg, 2930 Miller 
Trunk Highway, Duluth:  the easterly 164.1 feet of the South 
Half of the Northwest Quarter of the Southwest Quarter of the 
Southwest Quarter, Section 12, Township 50 North, Range 15 
West.  The adjacent property has belonged to Mr. Berg since 1978.
Due to incorrect survey lines, part of Mr. Berg's trailer park 
along with water and sewage system was located on 1.24 acres of 
tax-forfeited land.  This land is surrounded by private property 
and has no road access.  
    (d) St. Louis county may sell to Mablo Enrico, 202 First 
Street N.W., Chisholm:  part of Outlot B, beginning at a point 
83.96 feet South and 212.77 feet West of the Northwest corner, 
go South 47 degrees 9 minutes East 393 feet to a point on the 
West line of a platted road, thence South 42 degrees 51 minutes 
West along the west side of said road 100 feet, thence North 47 
degrees 9 minutes West 396 feet to a point on the shore of Long 
Lake, thence in a northerly and easterly direction 100 feet to 
the point of beginning.  Plat of Long Lake Beach, Lot 1, Sec. 
17, Lot 7, Section 18, all in Township 59 North, Range 20 West.  
Mr. Enrico, who has been diagnosed as having Alzheimer's 
Disease, forgot to pay taxes on his lakeshore lot and it was 
forfeited.  The family would like to redeem the property.  
    (e) St. Louis county may sell to William Moffat, P. O. Box 
434, Tower:  an undivided three-eighths interest in the easterly 
175 feet of Government Lot 8, Section 19, Township 62 North, 
Range 14 West.  Mr. Moffat requested use of tax-forfeited lands 
adjoining his property.  New surveys indicated that his garage 
and part of his house are already on that property.  
    (f) St. Louis county may sell to Rodney and Mary Lou 
Halunen, 1009 1st Street South, Virginia:  the North Half of Lot 
8 of Ruth Ann's Acres, Little Fourteen Lake, Government Lot 1, 
Section 13, Township 60 North, Range 19 West.  Lot 8 is a small 
undevelopable lake lot between two private landowners.  The 
department of natural resources has stated that there is no need 
for a public access.  The county recommends that it be split and 
sold to the two landowners in paragraphs (f) and (g).  
    (g) St. Louis county may sell to Steve Prelesnik, Route 1, 
Box 790, Britt:  the South Half of Lot 8 of Ruth Ann's Acres, 
Little Fourteen Lake, Government Lot 1, Section 13, Township 60 
North, Range 19 West.  Lot 8 is a small undevelopable lake lot 
between two private landowners.  The department of natural 
resources has stated that there is no need for a public access.  
The county recommends that it be split and sold to the two 
landowners in paragraphs (f) and (g).  
    (h) Lands in this section are not needed for state purposes 
and the public's interest would be better served if the lands 
were publicly privately owned. 
    Sec. 3.  [CORRECTION NO. 2] Laws 1989, chapter 144, section 
35, is amended to read: 
    Sec. 35.  [308A.641] [VOTE OF COOPERATIVE CONSTITUTED OF 
OTHER COOPERATIVES.] 
    A cooperative that is constituted entirely or partially of 
other cooperatives or associations may authorize by the articles 
or the bylaws for affiliated cooperative members to have an 
additional vote for:  
    (1) a stipulated amount of business transacted between the 
member cooperative and the cooperative central organization or; 
    (2) a stipulated number of members in the member 
cooperative; 
    (3) a certain stipulated amount of equity allocated to or 
held by the member cooperative in the cooperative's central 
organization; or 
    (4) a combination of methods in clauses (1) to (3).  
[308.07 s. 4] 
    Sec. 4.  [CORRECTION 3.] Minnesota Statutes 1988, section 
40A.122, subdivision 1, is amended to read: 
    Subdivision 1.  [APPLICABILITY.] An agency of the state, a 
public benefit corporation, a local government, or any other 
entity with the power of eminent domain under chapter 117, 
except a public utility as defined in section 216B.02, a 
municipal electric or gas utility, a municipal power agency, a 
cooperative electric association organized under chapter 308 
308A, or a pipeline operating under the authority of the Natural 
Gas Act, United States Code, title 15, sections 717 to 717z, 
shall follow the procedures in this section before: 
    (1) acquiring land or an easement in land with a total area 
over ten acres within an exclusive agricultural use zone; or 
    (2) advancing a grant, loan, interest subsidy, or other 
funds for the construction of dwellings, commercial or 
industrial facilities, or water or sewer facilities that could 
be used to serve structures in areas that are not for 
agricultural use, that require an acquisition of land or an 
easement in an exclusive agricultural zone. 
    Sec. 5.  [CORRECTION 3.] Minnesota Statutes 1988, section 
65A.375, is amended to read: 
    65A.375 [RATES FOR COOPERATIVE HOUSING AND NEIGHBORHOOD 
REAL ESTATE TRUST INSURANCE.] 
    The commissioner shall set the insurance rates for 
cooperative housing, organized under chapter 308 308A, and for 
neighborhood real estate trusts, characterized as nonprofit 
ownership of real estate with resident control.  The rates must 
be actuarially sound. 
    Sec. 6.  [CORRECTION 3.] Minnesota Statutes 1988, section 
80A.15, subdivision 2, is amended to read: 
    Subd. 2.  The following transactions are exempted from 
sections 80A.08 and 80A.16: 
    (a) Any isolated sales, whether or not effected through a 
broker-dealer, provided that no person shall make more than ten 
sales of securities of the same issuer pursuant to this 
exemption during any period of 12 consecutive months; provided 
further, that in the case of sales by an issuer, except sales of 
securities registered under the Securities Act of 1933 or 
exempted by section 3(b) of that act, (1) the seller reasonably 
believes that all buyers are purchasing for investment, and (2) 
the securities are not advertised for sale to the general public 
in newspapers or other publications of general circulation or 
otherwise, or by radio, television, electronic means or similar 
communications media, or through a program of general 
solicitation by means of mail or telephone. 
    (b) Any nonissuer distribution of an outstanding security 
if (1) either Moody's, Fitch's, or Standard & Poor's Securities 
Manuals, or other recognized manuals approved by the 
commissioner contains the names of the issuer's officers and 
directors, a balance sheet of the issuer as of a date not more 
than 18 months prior to the date of the sale, and a profit and 
loss statement for the fiscal year preceding the date of the 
balance sheet, and (2) the issuer or its predecessor has been in 
active, continuous business operation for the five-year period 
next preceding the date of sale, and (3) if the security has a 
fixed maturity or fixed interest or dividend provision, the 
issuer has not, within the three preceding fiscal years, 
defaulted in payment of principal, interest, or dividends on the 
securities. 
        (c) The execution of any orders by a licensed broker-dealer 
for the purchase or sale of any security, pursuant to an 
unsolicited offer to purchase or sell; provided that the 
broker-dealer acts as agent for the purchaser or seller, and has 
no direct material interest in the sale or distribution of the 
security, receives no commission, profit, or other compensation 
from any source other than the purchaser and seller and delivers 
to the purchaser and seller written confirmation of the 
transaction which clearly itemizes the commission, or other 
compensation. 
        (d) Any nonissuer sale of notes or bonds secured by a 
mortgage lien if the entire mortgage, together with all notes or 
bonds secured thereby, is sold to a single purchaser at a single 
sale. 
       (e) Any judicial sale, exchange, or issuance of securities 
made pursuant to an order of a court of competent jurisdiction. 
       (f) The sale, by a pledge holder, of a security pledged in 
good faith as collateral for a bona fide debt. 
       (g) Any offer or sale to a bank, savings institution, trust 
company, insurance company, investment company as defined in the 
Investment Company Act of 1940, pension or profit sharing trust, 
or other financial institution or institutional buyer, or to a 
broker-dealer, whether the purchaser is acting for itself or in 
some fiduciary capacity. 
     (h) Any sales by an issuer to the number of persons that 
shall not exceed 25 persons in this state, or 35 persons if the 
sales are made in compliance with Regulation D promulgated by 
the Securities and Exchange Commission, Code of Federal 
Regulations, title 17, sections 230.501 to 230.506, (other than 
those designated in paragraph (a) or (g)), whether or not any of 
the purchasers is then present in this state, if (1) the issuer 
reasonably believes that all of the buyers in this state (other 
than those designated in clause (g)) are purchasing for 
investment, and (2) no commission or other remuneration is paid 
or given directly or indirectly for soliciting any prospective 
buyer in this state (other than those designated in clause (g)), 
except reasonable and customary commissions paid by the issuer 
to a broker-dealer licensed under this chapter, and (3) the 
issuer has, ten days prior to any sale pursuant to this 
paragraph, supplied the commissioner with a statement of issuer 
on forms prescribed by the commissioner, containing the 
following information:  (i) the name and address of the issuer, 
and the date and state of its organization; (ii) the number of 
units, price per unit, and a description of the securities to be 
sold; (iii) the amount of commissions to be paid and the persons 
to whom they will be paid; (iv) the names of all officers, 
directors and persons owning five percent or more of the equity 
of the issuer; (v) a brief description of the intended use of 
proceeds; (vi) a description of all sales of securities made by 
the issuer within the six-month period next preceding the date 
of filing; and (vii) a copy of the investment letter, if any, 
intended to be used in connection with any sale.  Sales that are 
made more than six months before the start of an offering made 
pursuant to this exemption or are made more than six months 
after completion of an offering made pursuant to this exemption 
will not be considered part of the offering, so long as during 
those six-month periods there are no sales of unregistered 
securities (other than those made pursuant to paragraph (a) or 
(g)) by or for the issuer that are of the same or similar class 
as those sold under this exemption.  The commissioner may by 
rule or order as to any security or transaction or any type of 
security or transaction, withdraw or further condition this 
exemption, or increase the number of offers and sales permitted, 
or waive the conditions in clause (1), (2), or (3) with or 
without the substitution of a limitation or remuneration. 
       (i) Any offer (but not a sale) of a security for which a 
registration statement has been filed under sections 80A.01 to 
80A.31, if no stop order or refusal order is in effect and no 
public proceeding or examination looking toward an order is 
pending; and any offer of a security if the sale of the security 
is or would be exempt under this section.  The commissioner may 
by rule exempt offers (but not sales) of securities for which a 
registration statement has been filed as the commissioner deems 
appropriate, consistent with the purposes of sections 80A.01 to 
80A.31. 
       (j) The offer and sale by a cooperative association 
organized under chapter 308 308A, of its securities when the 
securities are offered and sold only to its members, or when the 
purchase of the securities is necessary or incidental to 
establishing membership in such association, or when such 
securities are issued as patronage dividends. 
       (l) The issuance and delivery of any securities of one 
corporation to another corporation or its security holders in 
connection with a merger, exchange of shares, or transfer of 
assets whereby the approval of stockholders of the other 
corporation is required to be obtained, provided, that the 
commissioner has been furnished with a general description of 
the transaction and with other information as the commissioner 
by rule prescribes not less than ten days prior to the issuance 
and delivery. 
       (m) Any transaction between the issuer or other person on 
whose behalf the offering is made and an underwriter or among 
underwriters. 
       (n) The distribution by a corporation of its or other 
securities to its own security holders as a stock dividend or as 
a dividend from earnings or surplus or as a liquidating 
distribution; or upon conversion of an outstanding convertible 
security; or pursuant to a stock split or reverse stock split. 
     (o) Any offer or sale of securities by an affiliate of the 
issuer thereof if:  (1) a registration statement is in effect 
with respect to securities of the same class of the issuer and 
(2) the offer or sale has been exempted from registration by 
rule or order of the commissioner.  
     (p) Any transaction pursuant to an offer to existing 
security holders of the issuer, including persons who at the 
time of the transaction are holders of convertible securities, 
nontransferable warrants, or transferable warrants exercisable 
within not more than 90 days of their issuance, if:  (1) no 
commission or other remuneration (other than a standby 
commission) is paid or given directly or indirectly for 
soliciting any security holder in this state; and (2) the 
commissioner has been furnished with a general description of 
the transaction and with other information as the commissioner 
may by rule prescribe no less than ten days prior to the 
transaction. 
      (q)  Any nonissuer sales of industrial revenue bonds issued 
by the state of Minnesota or any of its political or 
governmental subdivisions, municipalities, governmental 
agencies, or instrumentalities. 
    Sec. 7.  [CORRECTION 3.] Minnesota Statutes 1988, section 
115B.02, subdivision 14, is amended to read: 
    Subd. 14.  [PUBLIC UTILITY EASEMENT.] "Public utility 
easement" means an easement used for the purposes of 
transmission, distribution, or furnishing, at wholesale or 
retail, natural or manufactured gas, or electric or telephone 
service, by a public utility as defined in section 216B.02, 
subdivision 4, a cooperative electric association organized 
under the provisions of chapter 308 308A, a telephone company as 
defined in section 237.01, subdivisions 2 and 3, or a 
municipality producing or furnishing gas, electric, or telephone 
service.  
    Sec. 8.  [CORRECTION 3.] Minnesota Statutes 1988, section 
216B.01, is amended to read: 
    216B.01 [LEGISLATIVE FINDING.] 
    It is hereby declared to be in the public interest that 
public utilities be regulated as hereinafter provided in order 
to provide the retail consumers of natural gas and electric 
service in this state with adequate and reliable services at 
reasonable rates, consistent with the financial and economic 
requirements of public utilities and their need to construct 
facilities to provide such services or to otherwise obtain 
energy supplies, to avoid unnecessary duplication of facilities 
which increase the cost of service to the consumer and to 
minimize disputes between public utilities which may result in 
inconvenience or diminish efficiency in service to the 
consumers.  Because municipal utilities are presently 
effectively regulated by the residents of the municipalities 
which own and operate them, and cooperative electric 
associations are presently effectively regulated and controlled 
by the membership under the provisions of chapter 308 308A, it 
is deemed unnecessary to subject such utilities to regulation 
under this chapter except as specifically provided herein. 
    Sec. 9.  [CORRECTION 3.] Minnesota Statutes 1988, section 
216B.02, subdivision 4, is amended to read: 
    Subd. 4.  "Public utility" means persons, corporations or 
other legal entities, their lessees, trustees, and receivers, 
now or hereafter operating, maintaining, or controlling in this 
state equipment or facilities for furnishing at retail natural, 
manufactured or mixed gas or electric service to or for the 
public or engaged in the production and retail sale thereof but 
does not include (1) a municipality or a cooperative electric 
association, organized under the provisions of chapter 308 308A 
producing or furnishing natural, manufactured or mixed gas or 
electric service or (2) a retail seller of compressed natural 
gas used as a vehicular fuel which purchases the gas from a 
public utility.  Except as otherwise provided, the provisions of 
this chapter shall not be applicable to any sale of natural, 
manufactured or mixed gas or electricity by a public utility to 
another public utility for resale.  In addition, the provisions 
of this chapter shall not apply to a public utility whose total 
natural gas business consists of supplying natural, manufactured 
or mixed gas to not more than 650 customers within a city 
pursuant to a franchise granted by the city, provided a 
resolution of the city council requesting exemption from 
regulation is filed with the commission.  The city council may 
rescind the resolution requesting exemption at any time, and, 
upon the filing of the rescinding resolution with the 
commission, the provisions of this chapter shall apply to the 
public utility.  No person shall be deemed to be a public 
utility if it furnishes its services only to tenants or 
cooperative or condominium owners in buildings owned, leased or 
operated by such person.  No person shall be deemed to be a 
public utility if it furnishes service to occupants of a 
manufactured home or trailer park owned, leased, or operated by 
such person.  No person shall be deemed to be a public utility 
if it produces or furnishes service to less than 25 persons. 
    Sec. 10.  [CORRECTION 3.] Minnesota Statutes 1988, section 
216B.027, subdivision 2, is amended to read: 
    Subd. 2.  [SCOPE.] Cooperative associations organized under 
chapter 308 308A for the purpose of providing rural 
electrification at retail to ultimate consumers shall comply 
with the provisions of this section in addition to other 
applicable provisions of chapter 308 308A and other applicable 
state and federal laws.  
    Sec. 11.  [CORRECTION 3.] Minnesota Statutes 1988, section 
221.031, subdivision 2, is amended to read: 
    Subd. 2.  [PRIVATE CARRIERS.] This subdivision applies to 
private carriers engaged in intrastate commerce. 
     (a) Private carriers operating vehicles licensed and 
registered for a gross weight of more than 12,000 pounds, shall 
comply with rules adopted under this section applying to maximum 
hours of service of drivers, safe operation of vehicles, 
equipment, parts and accessories, leasing of vehicles or 
vehicles and drivers, and inspection, repair, and maintenance.  
     (b) In addition to the requirements in paragraph (a), 
private carriers operating vehicles licensed and registered for 
a gross weight in excess of 26,000 pounds shall comply with 
rules adopted under this section relating to driver 
qualifications.  
     (c) The requirements as to driver qualifications and 
maximum hours of service for drivers do not apply to private 
carriers who are (1) public utilities as defined in section 
216B.02, subdivision 4; (2) cooperative electric associations 
organized under chapter 308 308A; (3) telephone companies as 
defined in section 237.01, subdivision 2; or (4) who are engaged 
in the transportation of construction materials, tools and 
equipment from shop to job site or job site to job site, for use 
by the private carrier in the new construction, remodeling, or 
repair of buildings, structures or their appurtenances.  
     (d) The driver qualification rule and the hours of service 
rules do not apply to vehicles controlled by a farmer and 
operated by a farmer or farm employee to transport agricultural 
products or farm machinery or supplies to or from a farm if the 
vehicle is not used in the operations of a motor carrier and not 
carrying hazardous materials of a type or quantity that requires 
the vehicle to be marked or placarded in accordance with section 
221.033.  
    Sec. 12.  [CORRECTION 3.] Minnesota Statutes 1988, section 
237.075, subdivision 9, is amended to read: 
    Subd. 9.  [ELECTION ON REGULATION.] For the purposes of 
this section, "telephone company" shall not include a 
cooperative telephone association organized under the provisions 
of chapter 308 308A, an independent telephone company, or a 
municipal, unless the cooperative telephone association, 
independent telephone company, or municipal makes the election 
provided in this subdivision. 
     A cooperative telephone association may elect to become 
subject to rate regulation by the commission pursuant to this 
section.  The election shall be (a) approved by the board of 
directors of the association in accordance with the procedures 
for amending the articles of incorporation contained in section 
308.15, subdivision 1, excluding the filing requirements; or (b) 
approved by a majority of members or stockholders voting by mail 
ballot initiated by petition of no fewer than five percent of 
the members or stockholders of the association.  The ballot to 
be used for the election shall be approved by the board of 
directors and the department of public service.  The department 
shall mail the ballots to the association's members who shall 
return the ballots to the department.  The department will keep 
the ballots sealed until a date agreed upon by the department 
and the board of directors.  On this date, representatives of 
the department and the association shall count the ballots. If a 
majority of the association's members who vote elect to become 
subject to rate regulation by the commission, the election shall 
be effective 30 days after the date the ballots are counted.  
For purposes of this section, the term "member or stockholder"  
shall mean either the member or stockholder of record or the 
spouse of the member or stockholder unless the association has 
been notified otherwise in writing.  
     A municipal may elect to become subject to rate regulation 
by the commission pursuant to this section.  The election shall 
be (a) approved by resolution of the governing body of the 
municipality; or (b) approved by a majority of the customers of 
the municipal voting by mail ballot initiated by petition of no 
fewer than 20 percent of the customers of the municipal.  The 
ballot to be used for the election shall be approved by the 
governing body of the municipality and the department of public 
service.  The department shall mail the ballots to the 
municipal's customers who shall return the ballots to the 
department.  The department will keep the ballots sealed until a 
date agreed upon by the department and the governing body of the 
municipality.  On this date, representatives of the department 
and the municipal shall count the ballots.  If a majority of the 
customers of the municipal who vote elect to become subject to 
rate regulation by the commission, the election shall be 
effective 30 days after the date the ballots are counted.  For 
purposes of this section, the term "customer" shall mean either 
the person in whose name the telephone service is registered or 
the spouse of the person unless the municipal utility has been 
notified otherwise in writing.  
     An independent telephone company may elect to become 
subject to rate regulation by the commission pursuant to this 
section.  The election shall be (a) approved by the board of 
directors of the company in accordance with the procedures for 
amending the articles of incorporation contained in sections 
302A.133 to 302A.139, excluding the filing requirements; or (b) 
approved by a majority of subscribers voting by mail ballot 
initiated by petition of no fewer than five percent of the 
subscribers of the company.  The ballot to be used for the 
election shall be approved by the board of directors and the 
department of public service.  The department shall mail the 
ballots to the company's subscribers who shall return the 
ballots to the department.  The department will keep the ballots 
sealed until a date agreed upon by the department and the board 
of directors.  On this date, representatives of the department 
and the company shall count the ballots.  If a majority of the 
company's subscribers who vote elect to become subject to rate 
regulation by the commission, the election shall be effective 30 
days after the date the ballots are counted.  For purposes of 
this section the term "subscriber" shall mean either the person 
in whose name the telephone service is registered or the spouse 
of the person unless the independent telephone company has been 
notified otherwise in writing.  
    Sec. 13.  [CORRECTION 3.] Minnesota Statutes 1988, section 
273.11, subdivision 8, is amended to read: 
    Subd. 8.  [LIMITED EQUITY COOPERATIVE APARTMENTS.] For the 
purposes of this subdivision, the terms defined in this 
subdivision have the meanings given them.  
     A "limited equity cooperative" is a corporation organized 
under chapter 308 308A, which has as its primary purpose the 
provision of housing and related services to its members which 
meets 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 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.  It must also meet the following 
requirements:  
     (a) The articles of incorporation set the sale price of 
occupancy entitling cooperative shares or memberships at no more 
than a transfer value determined as provided in the articles. 
That value may not exceed the sum of the following:  
     (1) the consideration paid for the membership or shares by 
the first occupant of the unit, as shown in the records of the 
corporation; 
     (2) the fair market value, as shown in the records of the 
corporation, of any improvements to the real property that were 
installed at the sole expense of the member with the prior 
approval of the board of directors; 
     (3) accumulated interest, or an inflation allowance not to 
exceed the greater of a ten percent annual noncompounded 
increase on the consideration paid for the membership or share 
by the first occupant of the unit, or the amount that would have 
been paid on that consideration if interest had been paid on it 
at the rate of the percentage increase in the revised consumer 
price index for all urban consumers for the Minneapolis-St. Paul 
metropolitan area prepared by the United States Department of 
Labor, provided that the amount determined pursuant to this 
clause may not exceed $500 for each year or fraction of a year 
the membership or share was owned; plus 
     (4) real property capital contributions shown in the 
records of the corporation to have been paid by the transferor 
member and previous holders of the same membership, or of 
separate memberships that had entitled occupancy to the unit of 
the member involved.  These contributions include contributions 
to a corporate reserve account the use of which is restricted to 
real property improvements or acquisitions, contributions to the 
corporation which are used for real property improvements or 
acquisitions, and the amount of principal amortized by the 
corporation on its indebtedness due to the financing of real 
property acquisition or improvement or the averaging of 
principal paid by the corporation over the term of its real 
property-related indebtedness. 
     (b) The articles of incorporation require that the board of 
directors limit the purchase price of stock or membership 
interests for new member-occupants or resident shareholders to 
an amount which does not exceed the transfer value for the 
membership or stock as defined in clause (a).  
     (c) The articles of incorporation require that the total 
distribution out of capital to a member shall not exceed that 
transfer value. 
     (d) The articles of incorporation require that upon 
liquidation of the corporation any assets remaining after 
retirement of corporate debts and distribution to members will 
be conveyed to a charitable organization described in section 
501(c)(3) of the Internal Revenue Code of 1986, as amended 
through December 31, 1986, or a public agency.  
     A "limited equity cooperative apartment" is a dwelling unit 
owned by a limited equity cooperative.  
     "Occupancy entitling cooperative share or membership" is 
the ownership interest in a cooperative organization which 
entitles the holder to an exclusive right to occupy a dwelling 
unit owned or leased by the cooperative.  
     For purposes of taxation, the assessor shall value a unit 
owned by a limited equity cooperative at the lesser of its 
market value or the value determined by capitalizing the net 
operating income of a comparable apartment operated on a rental 
basis at the capitalization rate used in valuing comparable 
buildings that are not limited equity cooperatives.  If a 
cooperative fails to operate in accordance with the provisions 
of clauses (a) to (d), the property shall be subject to 
additional property taxes in the amount of the difference 
between the taxes determined in accordance with this subdivision 
for the last ten years that the property had been assessed 
pursuant to this subdivision and the amount that would have been 
paid if the provisions of this subdivision had not applied to 
it.  The additional taxes, plus interest at the rate specified 
in section 549.09, shall be extended against the property on the 
tax list for the current year. 
    Sec. 14.  [CORRECTION 3.] Minnesota Statutes 1988, section 
290.092, subdivision 2, is amended to read: 
     Subd. 2.  [EXEMPTIONS.] Corporations subject to tax under 
sections 290.05, subdivision 3; or 60A.15, subdivision 1 and 
290.35; real estate investment trusts; regulated investment 
companies; cooperatives taxable under subchapter T of the 
Internal Revenue Code of 1986 or organized under chapter 308 
308A or a similar law of another state; and entities having a 
valid election in effect under section 1362 or 860D(b) of the 
Internal Revenue Code of 1986, as amended through December 31, 
1987, are not subject to the tax imposed in subdivision 1 or 
subdivision 5. 
    Sec. 15.  [CORRECTION 3.] Minnesota Statutes 1988, section 
325E.025, subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, "utility" means persons, corporations, or other legal 
entities, their lessees, trustees, and receivers, now or 
hereafter operating, maintaining, or controlling in this state 
equipment or facilities for furnishing at retail natural, 
manufactured, or mixed gas or electric service to or for the 
public or engaged in its production and retail sale.  The term 
"utility" includes municipalities and cooperative electric 
associations, organized under the provisions of chapter 308 
308A, producing or furnishing natural, manufactured, or mixed 
gas or electric service.  This section is not applicable to the 
sale of natural, manufactured, or mixed gas or electricity by a 
public utility to another public utility for resale.  
    "Customer" means any person, firm, association, or 
corporation, or any agency of the federal, state, or local 
government being supplied with service by a utility. 
    Sec. 16.  [CORRECTION 3.] Minnesota Statutes 1988, section 
325E.026, subdivision 1, is amended to read: 
     Subdivision 1.  [DEFINITIONS.] When used in this section, 
the terms defined in section 216B.02 have the same meanings.  
Other terms used in this section have the following meanings: 
     (a) "Bypassing" means the act of attaching, connecting, or 
otherwise affixing a wire, cord, socket, pipe, hose, motor, or 
other instrument or device to utility or customer-owned 
facilities or equipment so that service provided by the utility 
is transmitted, supplied, or used without passing through a 
meter authorized by the utility for measuring or registering the 
amount of service provided. 
     (b) "Tampering" means damaging, altering, adjusting, or 
obstructing the operation of a meter or submeter provided by a 
utility for measuring or registering the amount of electricity, 
natural gas, or other utility service passing through the meter. 
     (c) "Unauthorized connection" means the physical connection 
or physical reconnection of utility service by a person without 
the authorization or consent of the utility. 
     (d) "Unauthorized metering" means removing, installing, 
connecting, reconnecting, or disconnecting a meter, submeter, or 
metering device for service by a utility, by a person other than 
an authorized employee or agent of the utility. 
     (e) "Utility" means a public utility defined in section 
216B.02, subdivision 4; a municipal utility; or a cooperative 
electric association organized under chapter 308 308A. 
    Sec. 17.  [CORRECTION 3.] Minnesota Statutes 1988, section 
326.20, subdivision 2, is amended to read: 
    Subd. 2.  [LICENSURE OF PARTNERSHIPS AND CORPORATIONS.] 
Every partnership or corporation in which one or more certified 
public accountants or licensed public accountants of this state 
is a partner or shareholder, if it is engaged, or intends to be 
engaged, in public practice within this state at any time shall 
be licensed by the state board of accountancy for that period.  
Upon application made upon the affidavit of a general partner of 
the partnership or secretary of the corporation who is a 
certified public accountant or a licensed public accountant of 
this state in good standing, the board shall issue a license 
which shall be good for a period prescribed by the board, unless 
the license shall sooner be revoked.  Interim licenses shall be 
issued to partnerships or corporations which have satisfied the 
provisions of this subdivision.  The application shall confer 
upon the board the consent of the partnership or corporation, 
and of the general partner or secretary making the application, 
to the board's jurisdiction over the acts of the partnership and 
its partners or agents or of the corporation and its 
shareholders or agents within the state. 
             No partnership or corporation shall style itself as a firm 
of certified public accountants unless (a) all partners or 
shareholders resident in this state are certified public 
accountants of this state, (b) all managers in charge of offices 
maintained in this state are certified public accountants of 
this state, (c) all partners or shareholders, wherever situated, 
are certified public accountants of one of the states or 
territories or of the District of Columbia and (d) the 
partnership or corporation is duly licensed under this section.  
             No partnership or corporation shall style itself as a firm 
of licensed public accountants unless (a) all partners or 
shareholders resident in this state are licensed public 
accountants or certified public accountants of this state, (b) 
all managers in charge of offices maintained in this state are 
licensed public accountants or certified public accountants of 
this state, (c) all partners or shareholders, wherever situated, 
are licensed public accountants of this state or certified 
public accountants of one of the states or territories or the 
District of Columbia and (d) the partnership or corporation is 
duly licensed under this section.  
             Any cooperative auditing organization organized under 
chapter 308 308A (a) which for a minimum of one year prior to 
July 1, 1979, has been rendering auditing, accounting of 
business analysis services to its members only, and (b) whose 
managers in charge of offices maintained in this state are 
certified public accountants or licensed public accountants of 
this state, shall be deemed to be qualified for a cooperative 
auditing service license and may style itself as a licensed 
cooperative auditing service.  
    Sec. 18.  [CORRECTION 3.] Minnesota Statutes 1988, section 
363.01, subdivision 32, is amended to read: 
    Subd. 32.  [COOPERATIVE APARTMENT CORPORATION.] 
"Cooperative apartment corporation" means a corporation or 
association organized under sections 308.05 to 308.18 or chapter 
308A or 317, the shareholders or members of which are entitled, 
solely by reason of their ownership of stock or membership 
certificates in the corporation or association, to occupy one or 
more residential units in a building owned or leased by the 
corporation or association.  
    Sec. 19.  [CORRECTION 3.] Minnesota Statutes 1988, section 
469.153, subdivision 7, is amended to read: 
    Subd. 7.  [TELEPHONE COMPANY.] "Telephone company" means 
any person, firm, association, including a cooperative 
association formed pursuant to chapter 308 308A, or corporation, 
excluding municipal telephone companies, operating for hire any 
telephone line, exchange, or system, wholly or partly within 
this state. 
    Sec. 20. [CORRECTION 5.] Minnesota Statutes 1988, section 
65B.49, subdivision 4a, as amended by 1989 H.F. No. 956, is 
amended to read: 
    Subd. 4a.  [LIABILITY ON UNDERINSURED MOTOR VEHICLES.] With 
respect to underinsured motor motorist coverage, the maximum 
liability of an insurer is the amount of damages sustained but 
not recovered from the insurance policy of the driver or owner 
of any underinsured at fault vehicle.  If a person is injured by 
two or more vehicles, underinsured motorist coverage is payable 
whenever any one of those vehicles meets the definition of 
underinsured motorist motor vehicle in Minnesota Statutes, 
section 65B.43, subdivision 17.  However, in no event shall the 
underinsured motorist carrier have to pay more than the amount 
of its underinsured motorist limits. 
    Sec. 21.  [CORRECTION NO. 6.] 1989 H.F. No. 579, article 2, 
section 1, is repealed. 
    Sec. 22.  Minnesota Statutes 1988, section 176.132, 
subdivision 2, is amended to read: 
    Subd. 2.  [AMOUNT.] (a) The supplementary benefit payable 
under this section shall be the difference between the amount 
the employee receives on or after January 1, 1976, under section 
176.101, subdivision 1 or 4, and 65 percent of the statewide 
average weekly wage as computed annually. 
    (b) In the event an eligible recipient is currently 
receiving no compensation or is receiving a reduced level of 
compensation because of a credit being applied as the result of 
a third party liability or damages, the employer or insurer 
shall compute the offset credit as if the individual were 
entitled to the actual benefit or 65 percent of the statewide 
average weekly wage as computed annually, whichever is greater.  
If this results in the use of a higher credit than otherwise 
would have been applied and the employer or insurer becomes 
liable for compensation benefits which would otherwise not have 
been paid, the additional benefits resulting shall be handled 
according to this section. 
    (c) In the event an eligible recipient is receiving no 
compensation or is receiving a reduced level of compensation 
because of a valid agreement in settlement of a claim, no 
supplementary benefit shall be payable under this section.  
Attorney's fees shall be allowed in settlements of claims for 
supplementary benefits in accordance with this chapter.  
    (d) In the event an eligible recipient is receiving no 
compensation or is receiving a reduced level of compensation 
because of prior limitations in the maximum amount payable for 
permanent total disability or because of reductions resulting 
from the simultaneous receipt of old age or disability benefits, 
the supplementary benefit shall be payable for the difference 
between the actual amount of compensation currently being paid 
and 65 percent of the statewide average weekly wage as computed 
annually. 
    (e) In the event that an eligible recipient is receiving 
simultaneous benefits from any government disability program, 
the amount of supplementary benefits payable under this section 
shall be reduced by five percent.  If the individual does not 
receive the maximum benefits for which the individual is 
eligible under other governmental disability programs due to the 
provisions of United States Code, title 42, section 424a(d), 
this reduction shall not apply. 
    (f) Notwithstanding any other provision in this subdivision 
to the contrary, if the individual does not receive the maximum 
benefits for which the individual is eligible under other 
governmental disability programs due to the provision of United 
States Code, title 42, section 424a(d), the calculation of 
supplementary benefits payable to the individual shall be as 
provided under this section in Minnesota Statutes 1988. 
    Sec. 23.  [CORRECTION NO. 7.] Minnesota Statutes 1988, 
section 221.031, subdivision 2a, is amended to read: 
    Subd. 2a.  [PRIVATE AGRICULTURAL CARRIERS EXEMPTIONS.] (a) 
Notwithstanding the provisions of subdivision 2, private 
carriers engaged in intrastate commerce and operating vehicles 
transporting agricultural and other farm products within an area 
having a 50-mile radius from the business location of the 
private carrier must comply only with the commissioner's rules 
for safety of operations and equipment, except as provided in 
paragraph (b). 
    (b) A rear-end dump truck or other rear-unloading truck 
while being used for hauling agricultural and other farm 
products from a place of production or on-farm storage site to a 
place of processing or storage, is not subject to any rule of 
the commissioner requiring rear-end protection, including a 
federal regulation adopted by reference.  
    Sec. 24.  [CORRECTION NO. 7.] 
    Laws 1989, chapter 118, is repealed. 
    Sec. 25.  [CORRECTION NO. 8.] 1989 H.F. No. 1734, article 
3, section 14, if enacted, is amended to read: 
    Sec. 14.  Minnesota Statutes 1988, section 273.13, 
subdivision 25, is amended to read: 
    Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
estate containing four or more units and used or held for use by 
the owner or by the tenants or lessees of the owner as a 
residence for rental periods of 30 days or more.  Class 4a also 
includes hospitals licensed under sections 144.50 to 144.56, 
other than hospitals exempt under section 272.02, and contiguous 
property used for hospital purposes, without regard to whether 
the property has been platted or subdivided.  Class 4a property 
has a tax capacity of 3.38 percent of market value. 
    (b) Class 4b includes: 
    (1) residential real estate containing less than four 
units, other than seasonal residential, recreational, which has 
a tax capacity of 2.88 percent of market value; 
    (2) post-secondary student housing not to exceed one acre 
of land which is owned by a nonprofit corporation organized 
under chapter 317 and is used exclusively by a sorority or 
fraternity organization for housing, which has a tax capacity of 
2.88 percent of market value; 
    (3) manufactured homes not classified under any other 
provision, which has a tax capacity of 2.88 percent of market 
value; 
    (4) a dwelling, garage, and surrounding one acre of 
property on a nonhomestead farm classified under subdivision 23, 
paragraph (b), which has a tax capacity of 2.88 percent of 
market value.  
    (c) Class 4c property includes: 
    (1) a structure that is situated on real property that is 
used for housing for the elderly or for low and moderate income 
families as defined by Title II of the National Housing Act or 
the Minnesota housing finance agency law of 1971 or rules 
promulgated by the agency pursuant thereto and financed by a 
direct federal loan or federally insured loan or a loan made by 
the Minnesota housing finance agency pursuant to the provisions 
of either of those acts and acts amendatory thereof.  This 
clause applies only to property of a nonprofit or limited 
dividend entity.  Property is classified as class 4c under this 
clause for 15 years from the date of the completion of the 
original construction or substantial rehabilitation, or for the 
original term of the loan; 
    (2) a structure that is: 
    (i) situated upon real property that is used for housing 
lower income families or elderly or handicapped persons, as 
defined in section 8 of the United States Housing Act of 1937, 
as amended; and 
    (ii) owned by an entity which has entered into a housing 
assistance payments contract under section 8 which provides 
assistance for 100 percent of the dwelling units in the 
structure, other than dwelling units intended for management or 
maintenance personnel.  Property is classified as class 4c under 
this clause for the term of the housing assistance payments 
contract, including all renewals, or for the term of its 
permanent financing, whichever is shorter; and 
    (3) a qualified low-income building that (i) receives a 
low-income housing credit under section 42 of the Internal 
Revenue Code of 1986, as amended through December 31, 1988; or 
(ii) meets the requirements of that section.  Classification 
pursuant to this clause is limited to buildings the construction 
or rehabilitation of which began after May 1, 1988, and to a 
term of 15 years. 
    For all properties described in clauses (1), (2), and (3) 
and in paragraph (d), the market value determined by the 
assessor must be based on the normal approach to value using 
normal unrestricted rents.  The land on which these structures 
are situated has a tax capacity of 2.88 percent of market value 
if the structure contains fewer than four units, and 3.38 
percent of market value if the structure contains four or more 
units.  
    (4) a parcel of land, not to exceed one acre, and its 
improvements or a parcel of unimproved land, not to exceed one 
acre, if it is owned by a neighborhood real estate trust and at 
least 60 percent of the dwelling units, if any, on all land 
owned by the trust are leased to or occupied by lower income 
families or individuals.  This clause does not apply to any 
portion of the land or improvements used for nonresidential 
purposes.  For purposes of this clause, a lower income family is 
a family with an income that does not exceed 65 percent of the 
median family income for the area, and a lower income individual 
is an individual whose income does not exceed 65 percent of the 
median individual income for the area, as determined by the 
United States Secretary of Housing and Urban Development.  For 
purposes of this clause, "neighborhood real estate trust" means 
an entity which is certified by the governing body of the 
municipality in which it is located to have the following 
characteristics:  (a) it is a nonprofit corporation organized 
under chapter 317; (b) it has as its principal purpose providing 
housing for lower income families in a specific geographic 
community designated in its articles or bylaws; (c) it limits 
membership with voting rights to residents of the designated 
community; and (d) it has a board of directors consisting of at 
least seven directors, 60 percent of whom are members with 
voting rights and, to the extent feasible, 25 percent of whom 
are elected by resident members of buildings owned by the trust; 
and 
    (5) except as provided in subdivision 22, paragraph (c), 
real property devoted to temporary and seasonal residential 
occupancy for recreation purposes, including real property 
devoted to temporary and seasonal residential occupancy for 
recreation purposes and not devoted to commercial purposes for 
more than 225 days in the year preceding the year of 
assessment.  For this purpose, property is devoted to commercial 
use on a specific day if it is used, or offered for use, and a 
fee is charged for the use.  Class 4c also includes commercial 
use real property used exclusively for recreational purposes in 
conjunction with class 4c property devoted to temporary and 
seasonal residential occupancy for recreational purposes, up to 
a total of two acres, provided the property is not devoted to 
commercial recreational use for more than 225 days in the year 
preceding the year of assessment and is located within two miles 
of the class 4c property with which it is used.  Class 4c 
property classified in clauses (5) and (6) also includes the 
remainder of class 1c resorts and has a tax capacity of 2.4 
percent of market value, except that noncommercial seasonal 
recreational property has a tax capacity of 2.22 percent of 
market value; and 
    (6) real property up to a maximum of one acre of land owned 
by a nonprofit community service oriented organization; provided 
that the property is not used for a revenue-producing activity 
for more than six days in the calendar year preceding the year 
of assessment and the property is not used for residential 
purposes on either a temporary or permanent basis.  For purposes 
of this clause, a "nonprofit community service oriented 
organization" means any corporation, society, association, 
foundation, or institution organized and operated exclusively 
for charitable, religious, fraternal, civic, or educational 
purposes, and which is exempt from federal income taxation 
pursuant to section 501(c)(3), (10), or (19) of the Internal 
Revenue Code of 1986, as amended through December 31, 1988. For 
purposes of this clause, "revenue-producing activities" shall 
include but not be limited to property or that portion of the 
property that is used as an on-sale intoxicating liquor or 
nonintoxicating malt liquor establishment licensed under chapter 
340A, a restaurant open to the public, bowling alley, a retail 
store, gambling conducted by organizations licensed under 
chapter 349, an insurance business, or office or other space 
leased or rented to a lessee who conducts a for-profit 
enterprise on the premises.  Any portion of the property which 
is used for revenue-producing activities for more than six days 
in the calendar year preceding the year of assessment shall be 
assessed as class 3a.  The use of the property for social events 
open exclusively to members and their guests for periods of less 
than 24 hours, when an admission is not charged nor any revenues 
are received by the organization shall not be considered a 
revenue-producing activity; and 
    Class 4c property classified under clauses (1), (2), (3), 
(4), and (6) has a tax capacity of 2.5 percent of market value. 
    (d) Class 4d property includes any structure: 
    (i) situated on real property that is used for housing for 
the elderly or for low and moderate income families as defined 
by the farmers home administration; 
    (ii) located in a municipality of less than 10,000 
population; and 
     (iii) financed by a direct loan or insured loan from the 
farmers home administration.  Property is classified under this 
clause for 15 years from the date of the completion of the 
original construction or for the original term of the loan.  
     The 1.5 percent and 2.5 percent tax capacity assignments 
apply to the properties described in paragraph (c), clauses (1), 
(2), and (3) and this clause, only in proportion to occupancy of 
the structure by elderly or handicapped persons or low and 
moderate income families as defined in the applicable laws 
unless construction of the structure had been commenced prior to 
January 1, 1984; or the project had been approved by the 
governing body of the municipality in which it is located prior 
to June 30, 1983; or financing of the project had been approved 
by a federal or state agency prior to June 30, 1983.  
Classification under this clause is only available to property 
of a nonprofit or limited dividend entity. 
    Class 4d property has a tax capacity of 1.5 percent of 
market value.  
    (e) Residential rental property that would otherwise be 
assessed as class 4 property under paragraph (a); paragraph (b), 
clauses (1) and (2); paragraph (c), clauses (1), (2), (3), or 
(4); or paragraph (d), is assessed at the tax capacity 
percentage applicable to it under Minnesota Statutes 1988, 
section 273.13, if it is found to be a substandard building 
under section 273.1316. 
    Sec. 26. [CORRECTION NO. 8; EFFECTIVE DATE.] 
    Section 25 is effective for the 1989 assessment and 
thereafter. 
    Sec. 27.  [CORRECTION NO. 9.] Minnesota Statutes 1988, 
section 116J.64, subdivision 7, is amended to read: 
    Subd. 7.  An Indian desiring a loan for the purpose of 
starting a business enterprise, expanding an existing business, 
or for technical and management assistance, shall make 
application to the Indian affairs council.  The Indian affairs 
council shall prescribe the necessary forms and advise the 
prospective borrower as to the conditions under which the 
application may be expected to receive favorable consideration.  
The application shall be forwarded to the appropriate tribal 
council, if it is participating in the program, for approval or 
disapproval, and shall be in conformity with the plans submitted 
by said tribal councils.  If the tribal council is not 
participating in the program, the Indian affairs council may 
directly administer the loan.  If the application is approved, 
the Indian affairs council shall forward the application, 
together with all relevant documents pertinent thereto, to the 
commissioner of finance, who shall draw a warrant in favor of 
the applicable tribal council or the Indian affairs council, if 
it is administering the loan, with appropriate notations 
identifying the borrower.  The tribal council or the Indian 
affairs council, if it is administering the loan, shall 
thereafter reimburse suppliers and vendors for purchases of 
equipment, real estate and inventory made by the borrower 
pursuant to the conditions or guidelines established by the 
Indian affairs council.  The tribal council or the Indian 
affairs council, if it is administering the loan, shall maintain 
records of transactions for each borrower in a manner consistent 
with good accounting practice.  Simple interest at two percent 
of the amount of the debt owed shall be charged.  When any 
portion of a debt is repaid, the tribal council or the Indian 
affairs council, if it is administering the loan, shall remit 
the amount so received plus interest paid thereon to the state 
treasurer through the Indian affairs council.  The amount so 
received shall be credited to the Indian business loan account.  
The tribal council or the Indian affairs council, if it is 
administering the loan, shall secure a fidelity bond from a 
surety company, in favor of the state treasurer, in an amount 
equal to the maximum amount to the credit of its loan account 
during the fiscal year.  On the placing of a loan, additional 
money equal to ten percent of the total amount made available to 
any tribal council or the Indian affairs council, if it is 
administering the loan, for loans during the fiscal year shall 
be paid to the council prior to December 31 for the purpose of 
financing administrative costs. 
    Sec. 28.  [CORRECTION NO. 10.] 1989 H.F. No. 1734, article 
1, section 7, if enacted, is amended to read: 
    Sec. 7.  Minnesota Statutes 1988, section 290.06, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [SURTAX; CORPORATIONS.] (a) In addition to the 
tax computed under subdivision 1 and section 290.0921, a surtax 
is imposed upon corporations equal to a percentage of the sum of 
the corporation's tax under subdivision 1 and section 290.0921. 
    (b) By May 31, 1990, the commissioner of revenue shall 
determine the rate of the surtax to be imposed under paragraph 
(a).  The commissioner of revenue shall prepare a forecast of 
the revenue predicted to be raised for taxable years beginning 
in calendar years 1990 through 1992 by the franchise tax on 
corporations under this chapter, including the tax under section 
290.092, computed as if the tax were imposed under section 
290.092, subdivisions 1 to 4a, and the rate under subdivision 1 
were 9.5 percent.  The commissioner shall set the rate of the 
surtax so that the amount forecast to be raised by the surtax 
(when added to the tax imposed under subdivision 1 and section 
290.0921) equals the amount of revenue forecast to be raised if 
the tax under section 290.092, subdivisions 1 to 4a, were in 
effect and section 290.0921 did not apply. 
    (c) The rate determined under paragraph (b) applies to 
taxable years beginning after December 31, 1990 1989. 
    (d) If the rate determined under paragraph (b) is held 
invalid, the surtax rate in effect for taxable years beginning 
after December 31, 1990 1989 is 7.5 percent. 
    Sec. 29.  [CORRECTION NO. 10.] [EFFECTIVE DATE.] 
    Section 28 is effective the day following final enactment. 
    Sec. 30.  [CORRECTION NO. 11.] 1989 H.F. No. 1734, article 
1, section 17, if enacted, is amended to read: 
    Sec. 17.  Minnesota Statutes 1988, section 290.191, 
subdivision 6, is amended to read: 
    Subd. 6.  [DETERMINATION OF RECEIPTS FACTOR FOR FINANCIAL 
INSTITUTIONS.] (a) For purposes of this section, the rules in 
this subdivision and subdivisions 7 and 8 apply in determining 
the receipts factor for financial institutions.  
    (b) "Receipts" for this purpose means gross income, 
including net taxable gain on disposition of assets, including 
securities and money market instruments, when derived from 
transactions and activities in the regular course of the 
taxpayer's trade or business.  
    (c) "Money market instruments" means federal funds sold and 
securities purchased under agreements to resell, commercial 
paper, banker's acceptances, and purchased certificates of 
deposit and similar instruments to the extent that the 
instruments are reflected as assets under generally accepted 
accounting principles.  
    (d) "Securities" means United States Treasury securities, 
obligations of United States government agencies and 
corporations, obligations of state and political subdivisions, 
corporate stock and other securities, participations in 
securities backed by mortgages held by United States or state 
government agencies, loan-backed securities and similar 
investments to the extent the investments are reflected as 
assets under generally accepted accounting principles.  
     (e) Receipts from the lease or rental of real or tangible 
personal property, including both finance leases and true 
leases, must be attributed to this state if the property is 
located in this state.  Tangible personal property that is 
characteristically moving property, such as motor vehicles, 
rolling stock, aircraft, vessels, mobile equipment, and the 
like, is considered to be located in a state if:  
     (1) the operation of the property is entirely within the 
state; or 
     (2) the operation of the property is in two or more states, 
but the principal base of operations from which the property is 
sent out is in the state.  
     (f) Interest income and other receipts from assets in the 
nature of loans that are secured primarily by real estate or 
tangible personal property must be attributed to this state if 
the security property is located in this state under the 
principles stated in paragraph (e).  
     (g) Interest income and other receipts from consumer loans 
not secured by real or tangible personal property that are made 
to residents of this state, whether at a place of business, by 
traveling loan officer, by mail, by telephone or other 
electronic means, must be attributed to this state.  
     (h) Interest income and other receipts from commercial 
loans and installment obligations that are unsecured by real or 
tangible personal property or secured by intangible property 
must be attributed to this state if the proceeds of the loan are 
to be applied in this state.  If it cannot be determined where 
the funds are to be applied, the income and receipts are 
attributed to the state in which the office of the borrower from 
which the application would be made in the regular course of 
business is located.  If this cannot be determined, the 
transaction is disregarded in the apportionment formula.  
    (i) Interest income and other receipts from a participating 
financial institution's portion of participation and syndication 
loans must be attributed under paragraphs (e) to (h).  A 
participation loan is an arrangement in which a lender makes a 
loan to a borrower and then sells, assigns, or otherwise 
transfers all or a part of the loan to a purchasing financial 
institution.  A syndication loan is a multibank loan transaction 
in which all the lenders are named as parties to the loan 
documentation, are known to the borrower, and have privity of 
contract with the borrower.  
     (j) Interest income and other receipts including service 
charges from financial institution credit card and travel and 
entertainment credit card receivables and credit card holders' 
fees must be attributed to the state to which the card charges 
and fees are regularly billed.  
     (k) Merchant discount income derived from financial 
institution credit card holder transactions with a merchant must 
be attributed to the state in which the merchant is located.  In 
the case of merchants located within and outside the state, only 
receipts from merchant discounts attributable to sales made from 
locations within the state are attributed to this state.  It is 
presumed, subject to rebuttal, that the location of a merchant 
is the address shown on the invoice submitted by the merchant to 
the taxpayer.  
     (l) Receipts from the performance of fiduciary and other 
services must be attributed to the state in which the benefits 
of the services are consumed.  If the benefits are consumed in 
more than one state, the receipts from those benefits must be 
apportioned to this state pro rata according to the portion of 
the benefits consumed in this state.  If the extent to which the 
benefits of services are consumed in this state is not readily 
determinable, the benefits of the services shall be deemed to be 
consumed at the location of the office of the customer from 
which the services were ordered in the regular course of the 
customer's trade or business.  If the ordering office cannot be 
determined, the benefits of the services shall be deemed to be 
consumed at the office of the customer to which the services are 
billed.  
     (m) Receipts from the issuance of travelers checks and 
money orders must be attributed to the state in which the checks 
and money orders are purchased.  
     (n) Receipts from investments of a financial institution in 
securities of this state, its political subdivisions, agencies, 
and instrumentalities must be attributed to this state.  
     (o) Receipts from a financial institution's interest in any 
property described in section 290.015, subdivision 3, paragraph 
(b), is not included in the numerator or the denominator of the 
receipts factor provided the financial institution's activities 
within this state with respect to any interest in the property 
are limited in the manner provided in section 290.015, 
subdivision 3, paragraph (b).  If a financial institution is 
subject to tax under this chapter, its interest in property 
described in section 290.015, subdivision 3, paragraph (b), is 
included in the receipts factor in the same manner as assets in 
the nature of securities or money market instruments are 
included under paragraph (n) and subdivision 7. 
    Sec. 31. [CORRECTION NO. 11; EFFECTIVE DATE.] 
    Section 30 is effective for taxable years beginning after 
December 31, 1986. 
    Sec. 32.  [CORRECTION NO. 12.] 1989 H.F. No. 1734, article 
3, section 17, if enacted, is amended to read: 
    Sec. 17.  Minnesota Statutes 1988, section 273.135, 
subdivision 2, is amended to read: 
    Subd. 2.  For taxes payable in 1990 and subsequent years, 
the amount of the reduction authorized by subdivision 1 shall be:
    (a) In the case of property located within the boundaries 
of a municipality which meets the qualifications prescribed in 
section 273.134, 66 percent of the tax , provided that the 
reduction shall not exceed the maximum amounts specified in 
clause (c), and shall not exceed an amount sufficient to reduce 
the effective tax rate on each parcel of property to the product 
of 95 percent of the base year effective tax rate multiplied by 
the ratio of the current year's tax rate to the payable 1989 tax 
rate.  In no case will the reduction resulting from this credit 
be less than $10.  
    (b) In the case of property located within the boundaries 
of a school district which qualifies as a tax relief area but 
which is outside the boundaries of a municipality which meets 
the qualifications prescribed in section 273.134, 57 percent of 
the tax , provided that the reduction shall not exceed the 
maximum amounts specified in clause (c), and shall not exceed an 
amount sufficient to reduce the effective tax rate on each 
parcel of property to the product of 95 percent of the base year 
effective tax rate multiplied by the ratio of the current year's 
tax rate to the payable 1989 tax rate.  In no case will the 
reduction resulting from this credit be less than $10.  
    (c) The maximum reduction of the tax is $225.40 on property 
described in clause (a) and $200.10 on property described in 
clause (b), for taxes payable in 1985.  These maximum amounts 
shall increase by $15 times the quantity one minus the homestead 
credit equivalency percentage per year for taxes payable in 1986 
and subsequent years.  
    For the purposes of this subdivision, "homestead credit 
equivalency percentage" means one minus the ratio of the net tax 
capacity rate percentage to the gross tax capacity rate 
percentage applicable to the first $68,000 of the market value 
of residential homesteads, "effective tax rate" means tax 
divided by the market value of a property, and the "base year 
effective tax rate" means the payable 1988 tax on a property 
with an identical market value to that of the property receiving 
the credit in the current year after the application of the 
credits payable under section 273.13, subdivisions 22 and 23, 
and this section, divided by the market value of the property.  
    Sec. 33.  [CORRECTION NO. 12.] 1989 H.F. No. 1734, article 
3, section 18, if enacted, is amended to read: 
    Sec. 18.  Minnesota Statutes 1988, section 273.1391, 
subdivision 2, is amended to read: 
    Subd. 2.  For taxes payable in 1989 only 1990 and 
subsequent years, the amount of the reduction authorized by 
subdivision 1 shall be:  
    (a) In the case of property located within a school 
district which does not meet the qualifications of section 
273.134 as a tax relief area, but which is located in a county 
with a population of less than 100,000 in which taconite is 
mined or quarried and wherein a school district is located which 
does meet the qualifications of a tax relief area, and provided 
that at least 90 percent of the area of the school district 
which does not meet the qualifications of section 273.134 lies 
within such county, 57 percent of the tax on qualified property 
located in the school district that does not meet the 
qualifications of section 273.134, provided that the amount of 
said reduction shall not exceed the maximum amounts specified in 
clause (c), and shall not exceed an amount sufficient to reduce 
the effective tax rate on each parcel of property to the product 
of 95 percent of the base year effective tax rate multiplied by 
the ratio of the current year's tax rate to the payable 1989 tax 
rate.  In no case will the reduction resulting from this credit 
be less than $10.  The reduction provided by this clause shall 
only be applicable to property located within the boundaries of 
the county described therein.  
    (b) In the case of property located within a school 
district which does not meet the qualifications of section 
273.134 as a tax relief area, but which is located in a school 
district in a county containing a city of the first class and a 
qualifying municipality, but not in a school district containing 
a city of the first class or adjacent to a school district 
containing a city of the first class unless the school district 
so adjacent contains a qualifying municipality, 57 percent of 
the tax , but not to exceed the maximums specified in clause 
(c), and shall not exceed an amount sufficient to reduce the 
effective tax rate on each parcel of property to the product of 
95 percent of the base year effective tax rate multiplied by the 
ratio of the current year's tax rate to the payable 1989 tax 
rate.  In no case will the reduction resulting from this credit 
be less than $10. 
    (c) The maximum reduction of the tax up to the taconite 
breakpoint is $200.10 for taxes payable in 1985.  This maximum 
amount shall increase by $15 multiplied by the quantity one 
minus the homestead credit equivalency percentage per year for 
taxes payable in 1986 and subsequent years.  
    For the purposes of this subdivision, "homestead credit 
equivalency percentage" means one minus the ratio of the net tax 
capacity rate percentage to the gross tax capacity rate 
percentage applicable to the first $68,000 of the market value 
of residential homesteads, and "effective tax rate" means tax 
divided by the market value of a property, and the "base year 
effective tax rate" means the payable 1988 tax on a property 
with an identical market value to that of the property receiving 
the credit in the current year after application of the credits 
payable under section 273.13, subdivisions 22 and 23, and this 
section, divided by the market value of the property. 
    Sec. 34.  [CORRECTION NO. 13.] 1989 H.F. No. 1734, article 
6, section 11, if enacted, is amended to read: 
    Sec. 11.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective for taxes levied in 1989 and 
thereafter, payable in 1990, and thereafter.  Sections 3 to 9 
are effective for local government aid paid in 1990.  Section 10 
is effective January 1, 1991. 
    Sec. 35.  [CORRECTION NO. 15.] 1989 H.F. No. 1734, article 
3, section 21, if enacted, is amended to read: 
    Sec. 21.  Minnesota Statutes 1988, section 273.1398, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [EDUCATION LEVY REDUCTION.] (a) As used in this 
subdivision, "equalized levies" means the sum of the maximum 
amounts that may be levied for: 
    (1) general education under section 124A.23, subdivision 2; 
    (2) supplemental revenue under section 124A.23, subdivision 
2a; 
    (3) capital expenditure facilities revenue under section 
124.243, subdivision 3; 
    (4) capital expenditure equipment revenue under section 
124.44, subdivision 2; and 
    (5) basic transportation under section 275.125, subdivision 
5; 
as reduced for general education levy equity under section 
124A.24. 
    (b) By June 15, 1990, the commissioner of education shall 
determine and certify to the commissioner of revenue the amount 
of the homestead and agricultural credit aid offset education 
levy reduction.  The offset reduction shall be equal to the 
amount by which: 
    (1) the amount that would have been computed as the 
district's equalized levies for property taxes payable in 1991, 
if the levies had been based upon the district's gross tax 
capacity, exceeds 
    (2) the district's equalized levies for property taxes 
payable in 1991. 
    (c) Effective for property taxes payable in 1991 and 
subsequent years, the amount of the education levy reduction 
shall be deducted from the homestead and agricultural credit aid 
payable to each school district under subdivision 2. 
    Sec. 36.  [CORRECTION NO. 16.] 1989 H.F. No. 66, article 3, 
section 16, subdivision 3, if enacted, is amended to read: 
    Subd. 3.  [FALSE STATEMENTS.] A person is guilty of a 
felony and may be sentenced under subdivision 4 if the person: 
    (1) makes a materially false or misleading statement, or a 
material omission, in a record required to be submitted under 
chapter 349A; or 
    (2) makes a materially false or misleading statement, or a 
material omission, in information submitted to the commissioner 
director of the state lottery in a lottery retailer's 
application or a document related to a bid. 
    Sec. 37.  [CORRECTION NO. 17.] Minnesota Statutes 1988, 
section 290A.04, is amended by adding a subdivision to read: 
    Subd. 5.  [COMBINED RENTER AND HOMEOWNER REFUND.] In the 
case of a claimant who is entitled to a refund in a calendar 
year for claims based both on rent constituting property taxes 
and property taxes payable, the refund allowable equals the sum 
of the refunds allowable, except that the sum may not exceed the 
higher of the maximum refund payable either based on rent 
constituting property taxes or property taxes payable. 
    Sec. 38.  [CORRECTION NO. 17; EFFECTIVE DATE.] 
    Section 37 is effective for claims based on property taxes 
paid in 1990 and rent paid in 1989. 
    Sec. 39.  [CORRECTION NO. 18.] 1989 H.F. No. 1734, article 
3, section 6, if enacted, is amended to read: 
    Sec. 6.  Minnesota Statutes 1988, section 272.025, 
subdivision 1, is amended to read: 
    Subdivision 1.  Except as provided in subdivision 3, a 
taxpayer claiming an exemption from taxation on property 
described in section 272.02, subdivision 1, clauses (1) to 
(7) and (9), except churches and houses of worship and property 
solely used for educational purposes by academies, colleges, 
universities or seminaries of learning and property owned by the 
state of Minnesota or any political subdivision thereof, shall 
file a statement of exemption with the assessor of the 
assessment district in which the property is located, or, in the 
case of a taxpayer claiming an exemption from taxation on 
property described in section 272.02, subdivision 1, clause (9), 
shall file a statement of exemption with the commissioner of 
revenue, on or before February 15 of each year for which the 
taxpayer claims an exemption.  In case of sickness, absence or 
other disability or for good cause, the assessor may extend the 
time for filing the statement of exemption for a period not to 
exceed 60 days.  The commissioner of revenue shall prescribe the 
form and contents of the statement of exemption. 
    Sec. 40.  [CORRECTION NO. 18.] 1989 H.F. No. 1734, article 
3, section 35, if enacted, is amended to read: 
    Sec. 35.  [EFFECTIVE DATE.] 
    Sections 1, 3, 6, 9, and 21, are effective for taxes 
payable in 1991 and subsequent years.  
    Section 2 is effective the day following final enactment 
and is intended to confirm and clarify the original intent of 
the legislature in the taxation and equalization of 
state-assessed public utility property.  
    Sections 4, 6, 7, 11 to 15, 19, 20, 22 to 24, and 26, are 
effective for taxes payable in 1990 and subsequent years. 
    Section 5 is effective January 1, 1989. 
    Sections 6 and 16 are effective for the 1989 assessment and 
thereafter. 
    Section 8 is effective for assessments of market value in 
1989 and thereafter.  If an assessor has increased the market 
value for the 1989 assessment by an amount in excess of the 
amount allowed under section 8, the assessor shall reduce the 
market value to that allowed under section 8.  If the assessor 
has mailed a notice of the increase in market value to the 
property owner, the assessor must mail a revised notice to the 
property owner.  Notices must state that the increases in market 
value have been limited under this act.  
    Section 10 is effective for taxes levied in 1989, payable 
in 1990, and thereafter, provided that cooperatives that 
qualified under Minnesota Statutes, section 273.124, subdivision 
6, on January 2, 1989, shall meet the board membership 
requirements of paragraph (a) by September 1, 1989, and shall 
meet the requirements of section 501(c)(3) or 501(c)(4) status 
under the Internal Revenue Code in the first paragraph and in 
paragraph (e) by January 1, 1990, and that the notice and filing 
requirements of paragraphs (f) and (g) shall apply only to 
leasehold cooperatives created later than 60 days after the date 
of enactment of this act. 
    Section 25 is effective for taconite produced in 1989, 
proceeds distributed in 1990, and thereafter.  
    Sections 27, 31, and 34, are effective the day following 
final enactment. 
    Sec. 41.  [CORRECTION NO. 19.] Minnesota Statutes 1988, 
section 65B.49, subdivision 5a, as amended by 1989 H.F. 1283, 
section 15, if enacted, is amended to read: 
    Sec. 15.  Minnesota Statutes 1988, section 65B.49, 
subdivision 5a, is amended to read: 
    Subd. 5a.  [RENTAL VEHICLES.] (a) Every plan of reparation 
security insuring a natural person as named insured, covering 
private passenger vehicles as defined under section 65B.001, 
subdivision 3, and pickup trucks and vans as defined under 
section 168.011 must provide that all of the obligation for 
damage and loss of use to a rented private passenger vehicle, 
including pickup trucks and vans as defined under section 
168.011, and rented trucks with a registered gross vehicle 
weight of 26,000 pounds or less would be covered by the property 
damage liability portion of the plan.  The obligation of the 
plan must not be contingent on fault or negligence.  In all 
cases where the plan's property damage liability coverage is 
less than $25,000, the coverage available under the subdivision 
must be $25,000.  Other than as described in this paragraph, 
nothing in this section amends or alters the provisions of the 
plan of reparation security as to primacy of the coverages in 
this section. 
    (b) A vehicle is rented for purposes of this subdivision if 
the rate for the use of the vehicle is determined on a weekly or 
daily basis.  A vehicle is not rented for purposes of this 
subdivision if the rate for the vehicle's use is determined on a 
monthly or longer period. 
    (c) The policy or certificate issued by the plan must 
inform the insured of the application of the plan to private 
passenger rental vehicles, including pickup trucks and vans as 
defined under section 168.011, and that the insured may not need 
to purchase additional coverage from the rental company. 
    (d) Where an insured has two or more vehicles covered by a 
plan or plans of reparation security containing the rented motor 
vehicle coverage required under paragraph (a), the insured may 
select the plan the insured wishes to collect from and that plan 
is entitled to a pro rata contribution from the other plan or 
plans based upon the property damage limits of liability.  If 
the person renting the motor vehicle is also covered by the 
person's employer's insurance policy or the employer's 
automobile self-insurance plan, the reparation obligor under the 
employer's policy or self-insurance plan has primary 
responsibility to pay claims arising from use of the rented 
vehicle. 
     (e) A notice advising the insured of rental vehicle 
coverage must be given by the reparation obligor to each current 
insured with the first renewal notice after January 1, 1989.  
The notice must be approved by the commissioner of commerce.  
The commissioner may specify the form of the notice.  
     (f) When a motor vehicle is rented or leased in this state 
on a weekly or daily basis, there must be attached to the rental 
contract a separate form containing a written notice in at least 
10-point bold type, if printed, or in capital letters, if 
typewritten, which states: 
 Under Minnesota law, a personal automobile insurance policy 
issued in Minnesota must cover the rental of this motor 
vehicle against damage to the vehicle and against loss of 
use of the vehicle.  Therefore, purchase of any collision 
damage waiver or similar insurance affected in this rental 
contract is not necessary if your policy was issued in 
Minnesota. 
No collision damage waiver or other insurance offered as part of 
or in conjunction with a rental of a motor vehicle may be sold 
unless the person renting the vehicle provides a written 
acknowledgment that the above consumer protection notice has 
been read and understood. 
     (g) When damage to a rented vehicle is covered by a plan of 
reparation security as provided under paragraph (a), the rental 
contract must state that payment by the reparation obligor 
within the time limits of section 72A.201 is acceptable, and 
prior payment by the renter is not required. 
      (h) To be compensated for the loss of use of a damaged 
rented motor vehicle, the car rental company must prove: 
     (1) that had the vehicle been available, it would have been 
rented; and 
     (2) that no other vehicle was available for rental in place 
of the damaged vehicle. 
     The standard of proof set forth in this paragraph does not 
limit the responsibility of a reparation obligor to provide an 
insured with coverage for any loss of use for which the 
reparation obligor is otherwise responsible.  A car rental 
company may be compensated for loss of use of a damaged rental 
motor vehicle only for the period when the damaged car actually 
would have been rented. 
    Sec. 42.  [CORRECTION NO. 20.] 1989 H.F. No. 1734, article 
4, section 14, if enacted, is amended to read: 
    Sec. 14.  Minnesota Statutes 1988, section 275.51, 
subdivision 3i, is amended to read: 
    Subd. 3i.  [LEVY LIMITATION.] The levy limitation for a 
governmental subdivision shall be equal to the adjusted levy 
limit base determined pursuant to subdivision 3h, reduced by:  
    (1) the local government aid that the governmental 
subdivision has been certified to receive pursuant to sections 
477A.011 to 477A.014, excluding the additional aid distribution 
received under section 477A.013, subdivision 5 477A.0131; and 
    (2) taconite aids under sections 298.28 and 298.282 
including any aid received in the levy year that was required to 
be placed in a special fund for expenditure in the next 
succeeding year.  
    As provided in section 298.28, one cent per taxable ton of 
the amount distributed under section 298.28, subdivision 5, 
paragraph (d), must not be deducted from the levy limit base of 
a county that receives the aid.  
    This amount is the amount of property taxes which a 
governmental subdivision may levy for all purposes other than 
those for which special levies and special assessments are made. 
    For taxes levied in 1989 and later years, the levy limit 
for a county calculated under clause (1) must be decreased by an 
additional amount equal to the difference between what would 
have been a county's production year 1986 payable 1987 
distribution under Minnesota Statutes 1984, section 298.28, 
based on 1986 production and its actual distribution for 
production year 1986, payable 1987.  
    Sec. 43.  [CORRECTION NO. 21.] Minnesota Statutes 1988, 
section 275.50, subdivision 2, is amended to read: 
    Subd. 2.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
subdivision" means a county, a home rule charter city, or a 
statutory city, except a home rule charter or statutory city 
that has a population of less than 2,500, and a town with a 
population of over 5,000 according to the most recent federal 
census.  
    (b) "Governmental subdivision" also includes any home rule 
charter or statutory city or town that receives a distribution 
from the taconite municipal aid account in the levy year. 
    Sec. 44.  [CORRECTION NO. 22.] 1989 H.F. No. 1734, article 
4, section 12, if enacted, is amended to read: 
    Sec. 12.  Minnesota Statutes 1988, section 275.51, 
subdivision 3f, is amended to read: 
    Subd. 3f.  [LEVY LIMIT BASE.] (a) The property tax levy 
limit base for governmental subdivisions for taxes levied in 
1988 shall be equal to the total actual levy for taxes payable 
in 1988 with additions and subtractions as specified in 
paragraphs (b) and (c).  
    (b) The amounts to be added to the actual 1988 levy are (1) 
the amount of local government aid the governmental subdivision 
was certified to receive in 1988 under sections 477A.011 to 
477A.014, (2) its 1988 taconite aids under sections 298.28 and 
298.282, and (3) its 1988 wetlands and native prairie 
reimbursements under Minnesota Statutes 1986, sections 273.115, 
subdivision 3, and 273.116, subdivision 3. 
    (c) The amounts to be subtracted from the actual 1988 levy 
are (1) any special levies claimed for taxes payable in 1988 
pursuant to Laws 1987, chapter 268, article 5, section 12, 
subdivision 4, clauses (1), (2), (3), and (4); and (2) for a 
governmental subdivision participating in a regional library 
system receiving grants from the department of education under 
section 134.34, the amount levied for taxes payable in 1988 for 
the operating costs of a public library service.  
    (d) For taxes levied in 1989 and subsequent years, a 
governmental subdivision's levy limit base is equal to its 
adjusted levy limit base for the preceding year, provided that 
for taxes levied in 1989, the amount of the administrative 
reimbursement aid received in 1988 shall be added to the base. 
    (e) For taxes levied by a county in 1989, the levy limit 
base determined under paragraph (d) shall be reduced by an 
amount equal to the cost of public defender services for 
felonies and gross misdemeanors and the costs of law clerks in 
the county that are assumed by the state during calendar year 
1990, less one-half the amount of fees collected by the courts 
in the county during calendar year 1988.  For taxes levied in 
1990 and subsequent years, the levy limit base determined under 
paragraph (d) shall be reduced by an amount equal to the cost of 
public defender services for felonies and gross misdemeanors and 
the cost of law clerks in the county that are assumed by the 
state during calendar year 1991, less the amount of fees 
collected by the courts in the county during calendar year 1989, 
computed at the rate of $30 for civil and probate filings and 
$55 for marriage dissolutions. 
    (f) For taxes levied by a county that is located in the 
eighth judicial district in 1989 only, the levy limit base 
determined under paragraphs (d) and (e) shall be further reduced 
by an amount equal to the cost of operation of the trial courts 
in the county during calendar year 1990 that are assumed by the 
state less one-half of the amount of fees collected by the 
courts in the county during calendar year 1988.  For taxes 
levied in 1990 only by those counties, the levy limit base 
determined under paragraphs (d) and (e) shall be reduced by an 
amount equal to the cost of operation of the trial courts in the 
county during the first six months of calendar year 1991 that 
are assumed by the state, less the amount of fees collected by 
the courts in the county during the first six months of calendar 
year 1989. 
    (g) By July 1, 1989, the board of public defense shall 
determine and certify to the supreme court the pro rata share 
for each county of the state-financed public defense services 
described in paragraph (e) during the six-month period beginning 
July 1, 1990.  By July 15, 1989, the supreme court shall 
determine and certify to the department of revenue for each 
county the sum of the amounts certified by the board of public 
defense and the pro rata share for each county of the cost of 
providing law clerks during the three-month period beginning 
October 1, 1990, plus, for each county located in the eighth 
judicial district, the cost of operation of the trial courts 
during calendar year 1990. 
    By July 1, 1990, the board of public defense shall 
determine and certify to the supreme court the pro rata share 
for each county of the state-financed public defense services 
described in paragraph (e) during calendar year 1991.  By July 
15, 1990, the supreme court shall determine and certify to the 
department of revenue for each county the sum of the amounts 
certified by the board of public defense and the pro rata share 
for each county of the cost of providing law clerks during 
calendar year 1991 plus, for each county located in the eighth 
judicial district, the cost of operation of the trial courts 
during the first six months of 1991. 
    Sec. 45.  [CORRECTION NO. 24.] 1989 H.F. 1734, article 1, 
section 14, if enacted, is amended to read: 
    Sec. 14.  [290.0921] [CORPORATE ALTERNATIVE MINIMUM TAX 
AFTER 1989.] 
    Subdivision 1.  [TAX IMPOSED.] (a) In addition to the taxes 
computed under this chapter without regard to this section, the 
franchise tax imposed on corporations includes a tax equal to 
the excess, if any, for the taxable year of:  
    (1) seven percent of Minnesota alternative minimum taxable 
income, less the credit allowed under section 290.35, 
subdivision 3; over 
    (2) the tax imposed under section 290.06, subdivision 1, 
without regard to this section.  
    (b) If the sum of the corporation's Minnesota sales and 
receipts, property, and payrolls, as defined in section 290.092, 
subdivision 4, exceeds $5,000,000, the amount under paragraph 
(a), clause (1) is the greater of 
    (1) $500 or 
    (2) the amount otherwise determined. 
    Sec. 46.  [EFFECTIVE DATE; CORRECTION NO. 24.] 
    Section 45 is effective the day following final enactment. 
    Sec. 47.  [CORRECTION NO. 25.] 1989 H.F. No. 1734, article 
4, section 12, if enacted, is amended to read: 
    Sec. 12.  Minnesota Statutes 1988, section 275.51, 
subdivision 3f, is amended to read: 
    Subd. 3f.  [LEVY LIMIT BASE.] (a) The property tax levy 
limit base for governmental subdivisions for taxes levied in 
1988 shall be equal to the total actual levy for taxes payable 
in 1988 with additions and subtractions as specified in 
paragraphs (b) and (c).  
    (b) The amounts to be added to the actual 1988 levy are (1) 
the amount of local government aid the governmental subdivision 
was certified to receive in 1988 under sections 477A.011 to 
477A.014, (2) its 1988 taconite aids under sections 298.28 and 
298.282, and (3) its 1988 wetlands and native prairie 
reimbursements under Minnesota Statutes 1986, sections 273.115, 
subdivision 3, and 273.116, subdivision 3. 
    (c) The amounts to be subtracted from the actual 1988 levy 
are (1) any special levies claimed for taxes payable in 1988 
pursuant to Laws 1987, chapter 268, article 5, section 12, 
subdivision 4, clauses (1), (2), (3), and (4); and (2) for a 
governmental subdivision participating in a regional library 
system receiving grants from the department of education under 
section 134.34, the amount levied for taxes payable in 1988 for 
the operating costs of a public library service.  
    (d) For taxes levied in 1989 and subsequent years, a 
governmental subdivision's levy limit base is equal to its 
adjusted levy limit base for the preceding year, provided that 
for taxes levied in 1989, the amount of the administrative 
reimbursement aid received in 1988 shall be added to the base. 
    (e) For taxes levied by a county in 1989, the levy limit 
base determined under paragraph (d) shall be reduced by an 
amount equal to the cost of public defender services for 
felonies and gross misdemeanors and the costs of law clerks in 
the county that are assumed by the state during calendar year 
1990, less one-half the amount of fees collected by the courts 
in the county during calendar year 1988.  For taxes levied in 
1990 and subsequent years, the levy limit base determined under 
paragraph (d) shall be reduced by an amount equal to the cost of 
public defender services for felonies and gross misdemeanors and 
the cost of law clerks in the county that are assumed by the 
state during calendar year 1991, less the amount of fees 
collected by the courts in the county during calendar year 1989, 
computed at the rate of $30 for civil and probate filings and 
$55 for marriage dissolutions. 
    (f) For taxes levied by a county that is located in the 
eighth judicial district in 1989 only, the levy limit base 
determined under paragraphs (d) and (e) shall be further reduced 
by an amount equal to the cost of operation of the trial courts 
in the county during calendar year 1990 that are assumed by the 
state less the amount of fees collected by the courts in the 
county during calendar year 1988.  For taxes levied in 1990 only 
by those counties, the levy limit base determined under 
paragraphs (d) and (e) shall be reduced by an amount equal to 
the cost of operation of the trial courts in the county during 
the first six months of calendar year 1991 that are assumed by 
the state, less the amount of fees collected by the courts in 
the county during the first six months of calendar year 1989. 
    (g) By July 1, 1989, the board of public defense shall 
determine and certify to the supreme court the pro rata share 
for each county of the state-financed public defense services 
described in paragraph (e) during the six-month period beginning 
July 1, 1990.  By July 15, 1989, the supreme court shall 
determine and certify to the department of revenue for each 
county the sum of the amounts certified by the board of public 
defense and the pro rata share for each county of the cost of 
providing law clerks during the three-month period beginning 
October 1, 1990, plus, for each county located in the eighth 
judicial district, the cost of operation of the trial courts 
during calendar year 1990. 
    By July 1, 1990, the board of public defense shall 
determine and certify to the supreme court the pro rata share 
for each county of the state-financed public defense services 
described in paragraph (e) during calendar year 1991.  By July 
15, 1990, the supreme court shall determine and certify to the 
department of revenue for each county the sum of the amounts 
certified by the board of public defense and the pro rata share 
for each county of the cost of providing law clerks during 
calendar year 1991 plus, for each county located in the eighth 
judicial district, the cost of operation of the trial courts 
during the first six months of 1991. 
    (h) If a governmental subdivision received an adjustment to 
its levy limit base for taxes levied in 1988 under section 
275.51, subdivision 3j, its levy limit base for taxes levied in 
1989 must be reduced by the lesser of (1) the adjustment under 
section 275.51, subdivision 3j, or (2) the difference between 
its (i) levy limit base for taxes levied in 1988 and its (ii) 
total actual levy for taxes levied in 1988 minus any special 
levies claimed for taxes levied in 1988 under section 275.50, 
subdivision 5. 
    Sec. 48.  1989 H.F. No. 654, article 6, section 5, 
subdivision 3, if enacted, is amended to read:  
    Subd. 3.  [COMBINATION REQUIREMENTS.] Combining districts 
must be contiguous and meet one of the following requirements at 
the time of combination:  
    (1) at least two districts with at least 400 resident 
pupils enrolled in grades 7 through 12 in the combined district 
and projections, approved by the department of education, of 
enrollment at least at that level for five years; 
    (2) at least two districts, both of which qualify for 
sparsity revenue under section 124A.22, subdivision 6, and have 
an average isolation index over 23; or 
    (3) at least three districts with fewer than 420 400 
resident pupils enrolled in grades 7 through 12 in the combined 
district. 
    A combination under clause (3) must be approved by the 
state board of education.  The state board shall disapprove a 
combination under clause (3) if the combination is educationally 
unsound or would not reasonably enable the districts to fulfill 
statutory and rule requirements. 
    Sec. 49.  Minnesota Statutes 1988, section 129B.46, 
subdivision 2, as amended by 1989 H.F. No. 654, article 7, 
section 19, if enacted, is amended to read:  
    Subd. 2.  [QUALIFICATIONS.] (a) An individual employed as a 
career teacher must be licensed as a teacher and shall be 
considered a teacher as defined in section 179A.03, subdivision 
18, for purposes of chapter 179A.  
    (b) An individual employed as a principal teacher must be 
licensed as a teacher principal and shall be considered a 
principal, as defined in section 179A.03, subdivision 12, for 
purposes of chapter 179A. 
    (c) An individual employed as a counselor teacher must be 
licensed as a counselor and shall be considered a teacher, as 
defined in section 179A.03, subdivision 18, for purposes of 
chapter 179A. 
    Sec. 50.  Minnesota Statutes 1988, section 105.41, 
subdivision 1b, as amended by 1989 S.F. No. 262, article 4, 
section 3, if enacted, is amended to read: 
    Subd. 1b.  [USE LESS THAN MINIMUM.] Except for local 
permits under section 473.877, subdivision 1 4, a permit is not 
required for the appropriation and use of less than a minimum 
amount to be established by the commissioner by rule.  Permits 
for more than the minimum amount but less than an intermediate 
amount to be specified by the commissioner by rule must be 
processed and approved at the municipal, county, or regional 
level based on rules to be established by the commissioner by 
January 1, 1977.  The rules must include provisions for 
reporting to the commissioner the amounts of water appropriated 
under local permits. 
    Sec. 51.  1989 H.F. No. 59, article 2, section 3, 
subdivision 1, if enacted, is amended to read: 
    Subdivision 1.  [TERMS.] (a) For purposes of this section, 
the following terms have the meanings given. 
    (b) "Law enforcement authority" means with respect to a 
home rule charter or statutory city, the chief of police, and 
with respect to an unincorporated area, the sheriff of the 
county. 
    (c) "Sex offender" means a person who has been convicted 
and sentenced under article 4, section 12 10, section 609.185, 
clause (2), section 609.342, 609.343, 609.344, or 609.345 and is 
serving or is being released to serve the supervised release 
portion of the sentence imposed or is on probation for that 
conviction unless the person is placed in a residential 
community-based facility. 
    Sec. 52.  1989 H.F. No. 59, article 2, section 18, if 
enacted, is amended to read: 
    Sec. 18.  [EFFECTIVE DATE.] 
    Sections 6, 7, and 10 to 15 are effective August 1, 1989, 
and apply to crimes committed on or after that date.  Section 9 
is effective August 1, 1990, and applies to crimes committed on 
or after that date.  The court shall consider convictions 
occurring before August 1, 1989, the effective date as prior 
convictions in sentencing offenders under sections 9, 10, and 12 
to 15.  Section 9 is effective August 1, 1990, and applies to 
crimes committed on or after that date. 
    Sec. 53.  1989 H.F. No. 59, article 3, section 26, if 
enacted, is amended to read: 
    Sec. 26.  Minnesota Statutes 1988, section 260.125, 
subdivision 3, is amended to read: 
    Subd. 3.  A prima facie case that the public safety is not 
served or that the child is not suitable for treatment shall 
have been established if the child was at least 16 years of age 
at the time of the alleged offense and: 
    (1) Is alleged by delinquency petition to have committed an 
aggravated felony against the person and (a) in committing the 
offense, the child acted with particular cruelty or disregard 
for the life or safety of another; or (b) the offense involved a 
high degree of sophistication or planning by the juvenile; or 
    (2) Is alleged by delinquency petition to have committed 
murder in the first degree; or 
    (3) Is alleged by delinquency petition (a) to have 
committed the delinquent act of escape from confinement to a 
state juvenile correctional facility and (b) to have committed 
an offense as part of, or subsequent to, escape from custody 
that would be a felony listed in section 609.11, subdivision 9, 
if committed by an adult; or 
    (4) Has been found by the court, pursuant to an admission 
in court or after trial, to have committed an offense within the 
preceding 24 months which would be a felony if committed by an 
adult, and is alleged by delinquency petition to have committed 
murder in the second or third degree, manslaughter in the first 
degree, criminal sexual conduct in the first degree or assault 
in the first degree; or 
     (5) Has been found by the court, pursuant to an admission 
in court or after trial, to have committed two offenses, not in 
the same behavioral incident, within the preceding 24 months 
which would be felonies if committed by an adult, and is alleged 
by delinquency petition to have committed manslaughter in the 
second degree, kidnapping, criminal sexual conduct in the second 
degree, arson in the first degree, aggravated robbery, or 
assault in the second degree; or 
     (6) Has been found by the court, pursuant to an admission 
in court or after trial, to have committed two offenses, not in 
the same behavioral incident, within the preceding 24 months, 
one or both of which would be the felony of burglary of a 
dwelling if committed by an adult, and the child is alleged by 
the delinquency petition to have committed another burglary of a 
dwelling.  For purposes of this subdivision, "dwelling" means a 
building which is, in whole or in part, usually occupied by one 
or more persons living there at night; or 
     (7) Has previously been found by the court, pursuant to an 
admission in court or after trial, to have committed three 
offenses, none in the same behavioral incident, within the 
preceding 24 months which would be felonies if committed by an 
adult, and is alleged by delinquency petition to have committed 
any felony other than those described in clause (2), (4), or 
(5); or 
    (8) Is alleged by delinquency petition to have committed an 
aggravated felony against the person, other than a violation of 
section 609.713, in furtherance of criminal activity by an 
organized gang; or 
    (9) Has previously been found by the court, pursuant to an 
admission in court or after trial, to have committed an offense 
which would be a felony if committed by an adult, and is alleged 
by delinquency petition to have committed a felony-level 
violation of chapter 152 involving the unlawful sale or 
possession of a schedule I or II controlled substance, while in 
a public park zone or a school zone as defined in sections 4 and 
5.  This clause does not apply to a juvenile alleged to have 
unlawfully possessed a controlled substance in a private 
residence located within the school zone or park zone.  
    For the purposes of this subdivision, "aggravated felony 
against the person" means a violation of any of the following 
provisions:  section 609.185; 609.19; 609.195; 609.20, 
subdivision 1 or 2; 609.221; 609.222; 609.223; 609.245; 609.25; 
609.342; 609.343; 609.344, subdivision 1, clause (c) or (d); 
609.345, subdivision 1, clause (c) or (d); 609.561; 609.582, 
subdivision 1, clause (b) or (c); or 609.713. 
    For the purposes of this subdivision, an "organized gang" 
means an association of five or more persons, with an 
established hierarchy, formed to encourage members of the 
association to perpetrate crimes or to provide support to 
members of the association who do commit crimes. 
    Sec. 54.  1989 H.F. No. 59, article 4, section 1, 
subdivision 3, if enacted, is amended to read: 
    Subd. 3.  [PROGRAMS FOR ADULT OFFENDERS COMMITTED TO THE 
COMMISSIONER.] (a) The commissioner shall provide for a range of 
sex offender treatment programs, including intensive sex 
offender treatment, within the state adult correctional facility 
system.  Participation in any treatment program is voluntary and 
is subject to the rules and regulations of the department of 
corrections.  Nothing in this section requires the commissioner 
to accept or retain an offender in a treatment program.  Nothing 
in this section creates a right of an offender to treatment.  
    (b) The commissioner shall provide for residential and 
outpatient sex offender treatment and aftercare when required 
for conditional release under section 12 10 or as a condition of 
supervised release. 
    Sec. 55.  1989 H.F. No. 59, article 4, section 18, if 
enacted, is amended to read: 
    Sec. 18.  [634.25] [ADMISSIBILITY OF RESULTS OF DNA 
ANALYSIS.] 
    In a civil or criminal trial or hearing, the results of DNA 
analysis, as defined in section 10 7, are admissible in evidence 
without antecedent expert testimony that DNA analysis provides a 
trustworthy and reliable method of identifying characteristics 
in an individual's genetic material upon a showing that the 
offered testimony meets the standards for admissibility set 
forth in the Rules of Evidence. 
    Sec. 56.  1989 H.F. No. 59, article 9, section 1, 
subdivision 1, if enacted, is amended to read: 
    Subdivision 1.  [APPLICABILITY.] For purposes of sections 1 
to 8 9, the following terms have the meanings given them in this 
section. 
    Sec. 57.  1989 H.F. No. 59, article 9, section 8, if 
enacted, is amended to read:  
    Sec. 8.  [299A.36] [OTHER DUTIES.] 
    The assistant commissioner assigned to the office of drug 
policy, in consultation with the drug abuse prevention resource 
council, shall: 
    (1) provide information and assistance upon request to 
school preassessment teams established under section 126.034 and 
school and community advisory teams established under section 
126.035; 
    (2) provide information and assistance upon request to the 
state board of pharmacy with respect to the board's enforcement 
of chapter 152; 
    (3) cooperate with and provide information and assistance 
upon request to the alcohol and other drug abuse section in the 
department of human services.; 
    (4) assist in coordinating the policy of the office with 
that of the narcotic enforcement unit in the bureau of criminal 
apprehension; and 
    (5) coordinate the activities of the regional drug task 
forces, provide assistance and information to them upon request, 
and assist in the formation of task forces in areas of the state 
in which no task force operates. 
    Sec. 58.  1989 H.F. No. 59, article 10, section 3, if 
enacted, is amended to read: 
    Sec. 3.  Minnesota Statutes 1988, section 169.121, 
subdivision 3, is amended to read: 
    Subd. 3.  [CRIMINAL PENALTIES.] (a) A person who violates 
this section subdivision 1 or an ordinance in conformity with it 
is guilty of a misdemeanor. 
    (b) A person is guilty of a gross misdemeanor who 
violates this section subdivision 1 or an ordinance in 
conformity with it within five years of a prior impaired driving 
conviction, or within ten years of the first of two or more 
prior impaired driving convictions.  For purposes of this 
paragraph, a prior impaired driving conviction is a prior 
conviction under this section, section 84.91, subdivision 1, 
paragraph (a), section 169.129, section 361.12, subdivision 1, 
section 609.21, subdivision 1, clause (2) or (3), 609.21, 
subdivision 2, clause (2) or (3), 609.21, subdivision 3, clause 
(2) or (3), 609.21, subdivision 4, clause (2) or (3), or an 
ordinance from this state, or a statute or ordinance from 
another state in conformity with any of them.  A prior impaired 
driving conviction also includes a prior juvenile adjudication 
that would have been a prior impaired driving conviction if 
committed by an adult.  
    (c) A person who violates subdivision 1a is guilty of a 
gross misdemeanor. 
    (d) The attorney in the jurisdiction in which the violation 
occurred who is responsible for prosecution of misdemeanor 
violations of this section shall also be responsible for 
prosecution of gross misdemeanor violations of this section.  
    When an attorney responsible for prosecuting gross 
misdemeanors under this section requests criminal history 
information relating to prior impaired driving convictions from 
a court, the court must furnish the information without charge. 
    Sec. 59.  1989 H.F. No. 1532, section 1, if enacted, is 
amended to read: 
    Section 1.  [216B.095] [DISCONNECTION DURING COLD WEATHER.] 
    The commission shall amend its rules governing 
disconnection of residential utility customers who are unable to 
pay for utility service during cold weather to include the 
following: 
    (1) coverage of customers whose household income is less 
than 185 percent of the federal poverty level; 
    (2) a requirement that a customer who pays the utility at 
least ten percent of the customer's income or the full amount of 
the utility bill, whichever is less, in a cold weather month 
cannot be disconnected during that month; 
    (3) that the ten percent figure in clause (2) must be 
prorated between energy providers proportionate to each 
provider's share of the customer's total heating energy costs 
where the customer receives service from more than one provider; 
    (4) that a customer's household income does not include any 
amount received for energy assistance; 
    (5) verification of income by the local energy assistance 
provider, unless the customer is automatically eligible as a 
recipient of any form of public assistance, including energy 
assistance, that uses income eligibility in an amount at or 
below the income eligibility in clause (1); and 
    (6) a requirement that the customer receive, from the local 
energy assistance provider or other entity, budget counseling 
and referral to weatherization, conservation, or other programs 
likely to reduce the customer's consumption of energy. 
    For the purpose of clause (2), the "customer's income" 
means the actual monthly income of the customer except for a 
customer who is normally employed only on a seasonal basis and 
whose annual income is over 135 percent of the federal poverty 
level, in which case the customer's income is the average 
monthly income of the customer computed on an annual calendar 
year basis. 
    Sec. 60.  Minnesota Statutes 1988, section 297A.257, 
subdivision 1, as amended by 1989 H.F. No. 1734, article 7, 
section 6, if enacted, is amended to read: 
    Sec. 6.  Minnesota Statutes 1988, section 297A.257, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DESIGNATION OF DISTRESSED COUNTIES.] (a) 
The commissioner of trade and economic development shall 
annually on June 1 designate those counties which are 
distressed.  A county is distressed if it satisfies at least one 
of the following criteria: 
    (1) the county has an average unemployment rate of ten 
percent or more for the one-year period ending on April 30 of 
the year in which the designation is made; or 
    (2) the unemployment rate for the entire county was greater 
than 110 percent of the state average for the 12-month period 
ending the previous April 30, and 20 percent or more of the 
county's economy, as determined by the commissioner of jobs and 
training, is dependent upon agriculture; or 
    (3) for counties designated for periods beginning after 
June 30, 1986, but before July 1, 1988, at least 20 percent of 
the county's economy, as determined by the commissioner of jobs 
and training, is dependent upon agriculture and the total market 
value of real and personal property for the entire county for 
taxes payable in 1986, as determined by the commissioner of 
revenue, has decreased by at least 22 percent from the total 
market value of real and personal property for the entire county 
for taxes payable in 1984.  
     If, as a result of a plant closing, layoffs, or another 
similar event affecting a significant number of employees in the 
county, the commissioner has reason to believe that the average 
unemployment in the county will exceed ten percent during the 
one-year period beginning April 30, the commissioner may 
designate the county as distressed, notwithstanding clause (1).  
    (b) The commissioner shall designate a portion of a county 
containing a city of the first class located outside of the 
metropolitan area as a distressed county if: 
    (1) that portion of the county has an unemployment rate of 
ten percent or more for the one-year period ending on April 30 
of the year in which the designation is made; and 
    (2) that portion of the county has a population of at least 
50,000 as determined by the 1980 federal census. 
    (c) A county or the portion of a county designated pursuant 
to this subdivision shall be considered a distressed county for 
purposes of this section and chapter 116M.  
    (d) Except as otherwise specifically provided, the 
determination of whether a county is distressed must be made 
using the most current data available from the state 
demographer.  The designation of a distressed county is 
effective for the 12-month period beginning July 1, except that 
a designation made June 1, 1988 shall remain in effect until 
December 31, 1989 with respect to purchases of capital equipment 
placed in service by December 31, 1989 only, provided that the 
continued exemption under subdivision 2b terminates June 30, 
1990.  A county may be designated as distressed as often as it 
qualifies. 
    (e) The authority to designate counties as distressed 
expires on June 30, for designations made effective July 1, 1988.
    Sec. 61.  1989 H.F. No. 1734, article 3, section 26, is 
amended to read:  
    Sec. 26.  Minnesota Statutes 1988, section 477A.012, is 
amended by adding a subdivision to read: 
    Subd. 3.  [AID OFFSET FOR COURT COSTS.] (a) There shall be 
deducted from the payment to a county under this section an 
amount representing the cost to the state for assumption of the 
cost of district court administration and operation of the trial 
court information system in the county and, in the case of 
Hennepin and Ramsey counties, of public defense services in 
juvenile and misdemeanor cases in the county.  The amount of the 
deduction shall be computed as provided in this subdivision.  
    (b) By June 15, 1990, the board of public defense shall 
determine and certify to the supreme court the cost of the 
state-financed public defense services in juvenile and 
misdemeanor cases for Hennepin and Ramsey counties during the 
fiscal year beginning the following July 1.  By June 30, 1990, 
the supreme court shall determine and certify to the department 
of revenue for each county, except counties located in the 
eighth judicial district, the pro rata share for each county of 
district court administration and trial court information system 
costs during the fiscal year beginning on the following July 1 
plus, in the case of Hennepin and Ramsey counties, the costs 
certified by the board of public defenders. 
    (c) Twenty-five percent of the amount computed under 
paragraph (b) for each county shall be deducted from each 
payment to the county under section 477A.015 in 1990.  One-half 
of the amount computed under paragraph (b) for each county shall 
be deducted from each payment to the county under section 
477A.015 in 1991 1990 and each subsequent year. 
    (d) If the amount computed under paragraph (b) exceeds the 
amount payable to a county under subdivision 1, the excess shall 
be deducted from the aid payable to the county under section 
273.1398, subdivision 2. 
    Sec. 62.  1989 H.F. No. 1734, article 4, section 11, is 
amended to read:  
    Sec. 11.  Minnesota Statutes 1988, section 275.50, 
subdivision 5, is amended to read: 
    Subd. 5.  Notwithstanding any other law to the contrary for 
taxes levied in 1989 payable in 1990 and subsequent years, 
"special levies" means those portions of ad valorem taxes levied 
by governmental subdivisions to: 
    (a) pay the costs not reimbursed by the state or federal 
government, of payments made to or on behalf of recipients of 
aid under any public assistance program authorized by law, and 
the costs of purchase or delivery of social services.  The 
aggregate amounts levied under this paragraph for the costs of 
purchase or delivery of social services and income maintenance 
programs, other than those identified in section 273.1398, 
subdivision 1, paragraph (j) and paragraph (b) are subject to a 
maximum increase over the amount levied for the previous year of 
12 percent for counties within the metropolitan area as defined 
in section 473.121, subdivision 2, or counties outside the 
metropolitan area but containing a city of the first class, and 
15 percent for other counties.  For purposes of this clause, 
"income maintenance programs" include income maintenance 
programs in section 273.1398, subdivision 1, to the extent the 
county provides benefits under those programs over the state 
mandated minimums.  Effective with taxes levied in 1989, the 
portion of this special levy for the county share levy 
identified in section 273.1398, subdivision 1, paragraph (k), is 
limited to the amount calculated under section 273.1398, 
subdivision 2a; 
    (b) pay the costs of principal and interest on bonded 
indebtedness except on bonded indebtedness issued under section 
471.981, subdivisions 4 to 4c or to reimburse for the amount of 
liquor store revenues used to pay the principal and interest due 
in the year preceding the year for which the levy limit is 
calculated on municipal liquor store bonds; 
    (c) pay the costs of principal and interest on certificates 
of indebtedness, except tax anticipation or aid anticipation 
certificates of indebtedness, issued for any corporate purpose 
except current expenses or funding an insufficiency in receipts 
from taxes or other sources or funding extraordinary 
expenditures resulting from a public emergency; and to pay the 
cost for certificates of indebtedness issued pursuant to 
sections 298.28 and 298.282; 
    (d) fund the payments made to the Minnesota state armory 
building commission pursuant to section 193.145, subdivision 2, 
to retire the principal and interest on armory construction 
bonds; 
    (e) provide for the bonded indebtedness portion of payments 
made to another political subdivision of the state of Minnesota; 
    (f) pay the amounts required, in accordance with section 
275.075, to correct for a county auditor's error of omission but 
only to the extent that when added to the preceding year's levy 
it is not in excess of an applicable statutory, special law or 
charter limitation, or the limitation imposed on the 
governmental subdivision by sections 275.50 to 275.56 in the 
preceding levy year; 
    (g) pay amounts required to correct for an error of 
omission in the levy certified to the appropriate county auditor 
or auditors by the governing body of a city or town with 
statutory city powers in a levy year, but only to the extent 
that when added to the preceding year's levy it is not in excess 
of an applicable statutory, special law or charter limitation, 
or the limitation imposed on the governmental subdivision by 
sections 275.50 to 275.56 in the preceding levy year; 
    (h) pay amounts required by law to be paid to pay the 
interest on and to reduce the unfunded accrued liability of 
public pension funds in accordance with the actuarial standards 
and guidelines specified in sections 356.215 and 356.216 reduced 
by 106 percent of the amount levied for that purpose in 1976, 
payable in 1977.  For the purpose of this special levy, the 
estimated receipts expected from the state of Minnesota pursuant 
to sections 69.011 to 69.031 or any other state aid expressly 
intended for the support of public pension funds shall be 
considered as a deduction in determining the required levy for 
the normal costs of the public pension funds.  No amount of 
these aids shall be considered as a deduction in determining the 
governmental subdivision's required levy for the reduction of 
the unfunded accrued liability of public pension funds; 
    (i) to compensate the state for the cost of a reassessment 
ordered by the commissioner of revenue pursuant to section 
270.16; 
    (j) pay the debt service on tax increment financing revenue 
bonds to the extent that revenue to pay the bonds or to maintain 
reserves for the bonds is insufficient as a result of the 
provisions of Laws 1988, chapter 719, article 5; 
    (k) pay the cost of hospital care under section 261.21; 
    (l) pay the unreimbursed costs incurred in the previous 
year to satisfy judgments rendered against the governmental 
subdivision by a court of competent jurisdiction in any tort 
action, or to pay the costs of settlements out of court against 
the governmental subdivision in a tort action when substantiated 
by a stipulation for the dismissal of the action filed with the 
court of competent jurisdiction and signed by both the plaintiff 
and the legal representative of the governmental subdivision, 
provided that an appeal for the unreimbursed costs under this 
clause was approved by the commissioner of revenue under section 
15; 
    (m) pay the expenses reasonably and necessarily incurred in 
preparing for or repairing the effects of natural disaster 
including the occurrence or threat of widespread or severe 
damage, injury, or loss of life or property resulting from 
natural causes such as earthquake, fire, flood, wind storm, wave 
action, oil spill, water contamination, air contamination, or 
drought in accordance with standards formulated by the emergency 
services division of the state department of public safety, 
provided that an appeal for the expenses incurred under this 
clause were approved by the commissioner of revenue under 
section 15; 
    (n) pay a portion of the losses in tax receipts to a city 
due to tax abatements or court actions in the year preceding the 
current levy year, provided that an appeal for the tax losses 
was approved by the commissioner of revenue under section 15.  
This special levy is limited to the amount of the losses times 
the ratio of the nonspecial levies to total levies for taxes 
payable in the year the abatements were granted.  County 
governments are not authorized to claim this special levy; 
    (o) pay the operating cost of regional library services 
authorized under section 134.34, subject to a maximum increase 
of the greater of (1) 103 percent multiplied by one plus the 
percentage increase determined for the governmental subdivision 
under section 275.51, subdivision 3h, clause (b), or (2) six 
percent.  If a governmental subdivision elected to include some 
or all of its levy for libraries within its adjusted levy limit 
base in the prior year, but elects to claim the levy as a 
special levy in the current levy year, the allowable increase is 
determined by applying the greater percentage determined under 
clause (1) or (2) to the total amount levied for libraries in 
the prior levy year.  After levy year 1989, the increase must 
not be determined using a base amount other than the amount that 
could have been levied as a special levy in the prior year.  In 
no event shall the special levy be less than the minimum levy 
required under sections 134.33 and 134.34, subdivisions 1 and 2; 
    (p) pay the amount of the county building fund levy 
permitted under section 373.40, subdivision 6; 
    (q) pay the county's share of the costs levied in 1989, 
1990, and 1991 for the Minnesota cooperative soil survey under 
Minnesota Statutes 1988, section 40.07, subdivision 15; and 
    (r) for taxes levied in 1989, payable in 1990 only, pay the 
cost incurred for the minimum share required by counties levying 
for the first time under section 134.34 as required under 
section 134.341.  For taxes levied in 1990, and thereafter, 
counties levying under this provision must levy under paragraph 
(o), and their allowable increase must be determined with 
reference to the amount levied in 1989 under this paragraph; and 
    (s) for taxes levied in 1989, payable in 1990 only, provide 
an amount equal to 50 percent of the estimated amount of the 
reduction in aids to a county under sections 273.1398, 
subdivision 2, paragraph (d), and 477A.012, subdivision 3, for 
aids payable in 1990.  For taxes levied in 1990, payable in 1991 
only, the adjusted levy limit base of a county that imposes a 
special levy under this paragraph for taxes payable in 1990 
shall be decreased by the amount of the special levy that 
exceeded the actual aid reduction, or increased by the amount of 
the special levy that was less than the actual aid reduction. 
    Sec. 63.  [CORRECTION NO. 26.] 1989 H.F. No. 372, article 
1, section 28, if enacted, is amended to read: 
     Sec. 28.  STATE PLANNING AGENCY     6,105,000    6,505,000 
                          1990    1991 
     Approved Complement - 113     113 
     General -            80.5    80.5 
     Special Revenue -     4.5     4.5 
     Revolving -            22      22 
     Federal -               6       6 
              Summary by Fund 
General            $ 5,630,000  $ 6,030,000
Special Revenue    $   475,000  $   475,000
 $377,000 the first year and $377,000 
the second year are for regional 
planning grants to regional development 
commissions organized under Minnesota 
Statutes, sections 462.381 to 462.396. 
 Until June 30, 1991, for state and 
federal grants distributed by state 
agencies to regions of the state not 
having a regional development 
commission, the state agency 
administering the grant program may 
assess the program for administrative 
costs incurred by the agency that 
normally are incurred by the commission.
 $22,000 the first year and $22,000 the 
second year are for the Council of 
Great Lakes Governors. 
 During the biennium any seminars or 
training sessions regarding federal 
issues for federal budgeting that are 
conducted by the Washington office 
shall be made available to legislators 
and legislative staff.  The Washington 
office shall notify the legislature 
regarding the timing of such seminars.  
 The commissioner shall contract with an 
independent consultant to explore 
future directions for Minnesota in land 
management information systems.  This 
study shall examine interagency 
cooperation, public and private venture 
potential, the status of geographic 
information systems planning as it 
applies to Minnesota, the role that the 
land management information center 
should play in future development of an 
overall system, and development of a 
long-range strategy for Minnesota's 
role in providing the appropriate 
services to agencies and political 
subdivisions.  The study shall also 
explore the activities of other states 
and nations in the area of geographic 
information systems.  The study must be 
accomplished in conjunction with the 
information policy office and be 
compatible with the long-range 
information management architecture 
being developed by the information 
policy office.  A final report shall be 
submitted to the legislature by January 
1, 1991, indicating recommendations for 
future actions. 
 The state planning agency shall study 
the effects on the state's 
transportation systems, methods of 
storage, public safety systems, and 
state health concerns of any 
incinerator to be contructed in 
Minnesota that is designed to burn 
hazardous wastes.  The report shall 
include specific recommendations and 
shall be delivered to the legislature 
and the affected state agencies by 
January 1, 1991. 
 $500,000 the second year is for 
one-third of the state's membership fee 
in the Great Lakes Protection Fund.  
The governor may enter as a signatory 
party in the Great Lakes Protection 
Fund.  The fund is created as a 
permanent endowment to advance the 
principles, goals, and objectives of 
the Great Lakes Toxic Substance Control 
Agreement, executed by the eight Great 
Lakes governors in May 1986, and to 
ensure the continuous development of 
needed scientific information, new 
cleanup technologies, and innovative 
methods of managing pollution problems 
as a cooperative effort in the Great 
Lakes region. 
 The governor may enter the state as a 
signatory party in the Great Lakes 
Protection Fund, subject to approval by 
the legislature.  After approval, the 
governor shall do all things necessary 
or incidental to participate in the 
Great Lakes Protection Fund, as spelled 
out in its bylaws and articles of 
incorporation.  
 If congressional consent to the Great 
Lakes Protection Fund carries with it 
conditions that materially change the 
provisions agreed to by the party 
states, the state reserves the option 
to terminate further participation in 
the fund. 
 $100,000 the first year and $100,000 
the second year are for demonstration 
grants under the youth employment and 
housing program to eligible 
organizations as defined in Minnesota 
Statutes, section 268.361, subdivision 
4.  $75,000 each year is for a grant to 
an eligible organization in the city of 
Bemidji and $25,000 each year is for a 
grant to an eligible organization in 
the city of Minneapolis.  
 $250,000 the first year and $250,000 
the second year is for the Way to Grow 
school readiness program.  $125,000 the 
first year and $125,000 the second year 
must be used for a project located 
within a city of the first class 
located within the metropolitan area as 
defined in Minnesota Statutes, section 
473.121, subdivision 2.  $125,000 the 
first year and $125,000 the second year 
must be used for a project located 
within a city of the second class 
located within the metropolitan area as 
defined in Minnesota Statutes, section 
473.121, subdivision 2.  This is 
intended to be a nonrecurring 
appropriation and must not be included 
in the budget base for the 1992-1993 
biennium. 
 The state planning agency shall study 
the administrative costs of local units 
of government and shall report to the 
legislature by January 1, 1990, on the 
level and growth of administrative 
costs and alternatives for controlling 
future growth. 
 $100,000 the first year and $100,000 
the second year are for the Minnesota 
environmental education board.  Any 
appropriations for the board made by 
S.F. No. 262 serve to reduce these 
appropriations. 
    Sec. 64.  [CORRECTION NO. 27.] 1989 H.F. No. 1734, article 
6, section 3, if enacted, is amended to read: 
    Sec. 3.  Minnesota Statutes 1988, section 477A.011, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [CITY.] City means a statutory or home rule 
charter city.  City also means a town having a population of 
5,000 or more for purposes of the aid payable under section 
477A.013, subdivision 3.  Towns and cities of the first class 
are not eligible to be treated as cities for purposes of aid 
payable under section 477A.013, subdivision 4 5. 
    Sec. 65.  [CORRECTION NO. 27; EFFECTIVE DATE.] 
    Section 64 is effective for aid paid in 1990. 
    Sec. 66.  [CORRECTION NO. 28.] Minnesota Statutes 1988, 
section 500.221, subdivision 2, is amended to read:  
    Subd. 2.  [ALIENS AND NON-AMERICAN CORPORATIONS.] Except as 
hereinafter provided, no natural person shall acquire directly 
or indirectly any interest in agricultural land unless the 
person is a citizen of the United States or a permanent resident 
alien of the United States.  In addition to the restrictions in 
section 500.24, no corporation, partnership, limited 
partnership, trustee, or other business entity shall directly or 
indirectly, acquire or otherwise obtain any interest, whether 
legal, beneficial or otherwise, in any title to agricultural 
land unless at least 80 percent of each class of stock issued 
and outstanding or 80 percent of the ultimate beneficial 
interest of the entity is held directly or indirectly by 
citizens of the United States or permanent resident aliens.  
This section shall not apply:  
    (1) to agricultural land that may be acquired by devise, 
inheritance, as security for indebtedness, by process of law in 
the collection of debts, or by any procedure for the enforcement 
of a lien or claim thereon, whether created by mortgage or 
otherwise.  All agricultural land acquired in the collection of 
debts or by the enforcement of a lien or claim shall be disposed 
of within three years after acquiring ownership; 
    (2) to citizens or subjects of a foreign country whose 
rights to hold land are secured by treaty; 
    (3) to lands used for transportation purposes by a common 
carrier, as defined in section 218.011, subdivision 2; 
    (4) to lands or interests in lands acquired for use in 
connection with mining and mineral processing operations.  
Pending the development of agricultural land for mining purposes 
the land may not be used for farming except under lease to a 
family farm, a family farm corporation or an authorized farm 
corporation; 
    (5) to agricultural land operated for research or 
experimental purposes if the ownership of the agricultural land 
is incidental to the research or experimental objectives of the 
person or business entity and the total acreage owned by the 
person or business entity does not exceed the acreage owned on 
May 27, 1977; or 
    (6) to the purchase of any tract of 40 acres or less for 
facilities incidental to pipeline operation by a company 
operating a pipeline as defined in section 116I.01, subdivision 
3; or 
    (7) to agricultural land and land capable of being used as 
farmland in vegetable processing operations that is reasonably 
necessary to meet the requirements of pollution control law or 
rules. 
    Sec. 67.  1989 H.F. No. 372, article 3, section 58, 
subdivision 2, if enacted, is amended to read: 
    Subd. 2.  [JULY 1, 1990, OUTSIDE 8TH.] (a) Except as 
provided in paragraph (b), in all judicial districts except the 
eighth, sections 6, 7, 8, 11, 13, 15, 22, 23, 30, 31, 32, 33, 
34, 35, 36, 37, 38, and 56, are effective July 1, 1990. 
     (b) Section 6 is effective July 1, 1989, with respect to 
the increase in fees under section 7.  Sections 7 and 11 are 
effective July 1, 1989. 
    Sec. 68.  [EFFECTIVE DATE.] 
    Unless provided otherwise, the sections of this act that 
amend other 1989 enactments take effect on the same dates as the 
enactments that they amend. 
    Presented to the governor May 31, 1989 
    Signed by the governor June 3, 1989, 1:05 a.m.