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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1992 

                        CHAPTER 363-S.F.No. 1562 
           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 1990, sections 92.46, 
          subdivision 1; 290.191, subdivision 4; and 490.123, by 
          adding a subdivision; Minnesota Statutes 1991 
          Supplement, sections 82B.05, subdivision 1; 82B.11, 
          subdivision 1; 82B.17; 82B.19, subdivision 3; 122.895, 
          subdivision 5; 124.2615, subdivision 1; 126.22, 
          subdivision 8; 256I.05, subdivision 1b; 273.13, 
          subdivision 25; 297A.25, subdivision 12; 302A.461, 
          subdivision 2; 469.101, subdivision 23; and Laws 1989, 
          chapter 341, article 1, section 26; Laws 1991, chapter 
          97, section 15; chapter 265, article 4, section 34; 
          article 6, section 67, subdivision 1; chapter 292, 
          article 1, section 6, subdivision 2; chapter 298, 
          article 7, section 9; chapter 333, section 38; chapter 
          345, article 1, section 17, subdivision 3; article 1, 
          by adding a section; repealing Minnesota Statutes 1991 
          Supplement, section 136D.90, subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1
    Section 1.  Minnesota Statutes 1991 Supplement, section 
302A.461, subdivision 2, is amended to read: 
    Subd. 2.  [OTHER DOCUMENTS REQUIRED.] A corporation shall 
keep at its principal executive office, or, if its principal 
executive office is outside of this state, shall make available 
at its registered office within ten days after receipt by an 
officer of the corporation of a written demand for them made by 
a person described in subdivision 4, originals or copies of:  
    (a) Records of all proceedings of shareholders for the last 
three years; 
    (b) Records of all proceedings of the board for the last 
three years; 
    (c) Its articles and all amendments currently in effect; 
    (d) Its bylaws and all amendments currently in effect; 
    (e) Financial statements required by section 302A.463 and 
the financial statement for the most recent interim period 
prepared in the course of the operation of the corporation for 
distribution to the shareholders or to a governmental agency as 
a matter of public record; 
    (f) Reports made to shareholders generally within the last 
three years; 
    (g) A statement of the names and usual business addresses 
of its directors and principal officers; 
    (h) Voting trust agreements described in section 302A.453; 
    (i) Shareholder control agreements described in section 
302A.457; and 
    (j) A copy of agreements, contracts, or other arrangements 
or portions of them incorporated by reference under section 
320A.401 302A.401, subdivision 3.  
    Sec. 2.  [CORRECTION 1.] 
     Minnesota Statutes 1991 Supplement, section 82B.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERS.] The real estate appraiser 
advisory board consists of 15 members appointed by the 
commissioner of commerce.  Three of the members must be public 
members, four must be consumers of appraisal services, and eight 
must be licensed real estate appraisers of whom not less than 
two members shall be state real property appraisers, federal 
residential real property appraisers, or certified federal 
residential real property appraisers and not less than two 
members shall be certified federal general real property 
appraisers. 
    Sec. 3.  [CORRECTION 1.] 
     Minnesota Statutes 1991 Supplement, section 82B.11, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERALLY.] There are five classes of 
license for licensed real estate appraisers. 
    Sec. 4.  [CORRECTION 1.] 
     Minnesota Statutes 1991 Supplement, section 82B.17, is 
amended to read: 
    82B.17 [LICENSE DESIGNATION.] 
    When a licensed real estate appraiser uses the designation 
real estate appraiser or similar terms in an appraisal report or 
in a contract or other instrument used by the license holder in 
conducting real property appraisal activities or in 
advertisements, the appraiser shall place the appraiser's 
license number adjacent to or immediately below the designation 
used and indicate the class of license held. 
    Sec. 5.  [CORRECTION 1.] 
     Minnesota Statutes 1991 Supplement, section 82B.19, 
subdivision 3, is amended to read: 
    Subd. 3.  [REINSTATEMENTS.] A license as a real estate 
appraiser that has been revoked as a result of disciplinary 
action by the commissioner may not be reinstated unless the 
applicant presents evidence of completion of the continuing 
education required by this chapter.  This requirement may not be 
imposed upon an applicant for reinstatement who has been 
required to successfully complete the examination for licensed 
real estate appraiser as a condition to reinstatement of a 
license. 
    Sec. 6.  [CORRECTION 1.] 
     Laws 1989, chapter 341, article 1, section 26, is amended 
to read: 
    Sec. 26.  [REPEALER.] 
    Section 23 is repealed September January 1, 1991 1992. 
    Sec. 7.  [CORRECTION 1.] 
    Laws 1991, chapter 97, section 15, is amended to read: 
    Sec. 15.  [EXISTING LICENSES.] 
    Licenses issued pursuant to Minnesota Statutes, chapter 
82B, before the effective date of this act remain valid and in 
effect until September January 1, 1991 1992.  A licensee who 
satisfies the examination or education requirements of Minnesota 
Statutes, section 82B.225, no later than August December 31, 
1991, is eligible for licensure under Minnesota Statutes, 
section 82B.11, subdivision 2. 
    Sec. 8.  [CORRECTION 2.] 
    Subdivision 1.  [INCONSISTENT AMENDMENTS.] The amendment to 
Minnesota Statutes 1990, section 549.09, subdivision 1, 
paragraph (b), clause (2), contained in Laws 1991, chapter 266, 
section 10, prevails over the amendment to Minnesota Statutes 
1990, section 549.09, subdivision 1, paragraph (b), clause (2), 
contained in Laws 1991, chapter 321, section 7.  
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective 
August 1, 1991. 
    Sec. 9.  [CORRECTION 4.] 
    Laws 1991, chapter 298, article 7, section 9, is amended to 
read: 
    Sec. 9.  [ADVISORY TASK FORCE ON PARATRANSIT.] 
    Subdivision 1.  [CREATION; MEMBERSHIP.] The regional 
transit board shall establish a paratransit advisory task force 
under section 15.059, subdivision 6, consisting of the following 
members: 
    (1) two members representing the regional transit board, 
appointed by the chair of the board; 
    (2) two members representing the department of human 
services, appointed by the commissioner of human services; 
    (3) one member representing the department of 
transportation, appointed by the commissioner of transportation; 
    (4) one member representing the metropolitan transit 
commission, appointed by the chair of the commission; 
    (5) one member representing the council on disability, 
appointed by the council; 
    (6) one member representing nonprofit providers, appointed 
by the commissioner of human services; 
    (7) one member representing for-profit providers, appointed 
by the commissioner of human services; 
    (8) one member representing the senior community, appointed 
by the commissioner of human services; 
    (9) one member representing the metropolitan area, 
appointed by the chair of the metropolitan council; and 
    (10) two members representing users of paratransit, 
appointed by the chair of the board. 
    The committee task force shall expire December 31, 1991. 
    Subd. 2.  [ADMINISTRATION.] The regional transit board and 
the department of human services shall provide staff and 
administrative services for the committee task force.  The 
organizations whose representatives are listed in subdivision 1, 
clauses (4) to (8), shall provide information, staff, and 
technical assistance for the committee task force as needed. 
    Subd. 3.  [STUDIES.] The committee task force shall study 
the feasibility of consolidating and coordinating existing metro 
mobility service trips with existing department of human 
services medical assistance service trips in the metropolitan 
area.  The committee task force shall consult affected persons 
and organizations not represented by members appointed under 
subdivision 1, including day training and rehabilitation 
centers, nursing homes, and intermediate care facilities for the 
mentally retarded. 
    Subd 4.  [REPORT.] The commissioner of human services and 
the chair of the regional transit board shall jointly submit the 
report and recommendations to the legislature and the governor 
no later than December 31, 1991. 
    Subd. 5.  [DEFINITION.] For the purposes of this section, 
"metropolitan area" has the meaning given it in Minnesota 
Statutes, section 473.121, subdivision 2. 
    Sec. 10.  [CORRECTION 5.] 
    Minnesota Statutes 1991 Supplement, section 256I.05, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [RATES FOR UNCERTIFIED BOARDING CARE HOMES.] 
Effective July 1, 1992, the maximum rate for a boarding care 
home not certified to receive medical assistance is equal to 65 
percent of the average nursing home level "A" rate in effect for 
the geographic area in which the boarding care home is located, 
except that a facility's rate must not be reduced by more than 
ten percent for the year ending June 30, 1992.  This is 
effective until June 30, 1993.  A noncertified boarding care 
home licensed under Minnesota Rules, parts 9520.0500 to 
9520.0690, is exempt from this rate limit.  The commissioner 
shall study the numbers of facilities and residents that will be 
affected by the limit in this subdivision, the number of 
facilities likely to close because of the limit, the available 
alternatives for affected residents, methods of relocating or 
securing alternative placements for residents, and other effects 
of the limit.  The commissioner shall provide a report to the 
legislature by January 1, 1992, on the commissioner's findings 
and recommendations relating to the rate limit.  
    Sec. 11.  [CORRECTION 6.] 
    Subdivision 1.  [APPORTIONMENT OF NET INCOME.] Minnesota 
Statutes 1990, section 290.191, subdivision 4, is amended to 
read: 
    Subd. 4.  [APPORTIONMENT FORMULA FOR CERTAIN MAIL ORDER 
BUSINESSES.] If the business consists exclusively of the selling 
of tangible personal property and services in response to orders 
received by United States mail or telephone, and 99 percent of 
the taxpayer's property and payroll is within Minnesota, then 
the taxpayer may apportion net income to Minnesota based solely 
upon the percentage that the sales made within this state in 
connection with the trade or business during the tax period are 
of the total sales wherever made in connection with the trade or 
business during the tax period.  Property and payroll factors 
are disregarded.  In determining eligibility for this 
subdivision,:  
    (1) the sale not in the ordinary course of business of 
tangible or intangible assets used in conducting business 
activities must be disregarded; and 
    (2) property and payroll at a distribution center outside 
of Minnesota are disregarded if the sole activity at the 
distribution center is the filling of orders, and no 
solicitation of orders occurs at the distribution center.  
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective for 
taxable years beginning after December 31, 1990. 
    Sec. 12.  [CORRECTION 7.] 
    Subdivision 1.  [CLASS 4C PROPERTY.] Minnesota Statutes 
1991 Supplement, 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 class rate of 3.5 percent of market value for taxes 
payable in 1992, and 3.4 percent of market value for taxes 
payable in 1993 and thereafter. 
    (b) Class 4b includes: 
    (1) residential real estate containing less than four 
units, other than seasonal residential, and recreational; 
    (2) manufactured homes not classified under any other 
provision; 
    (3) a dwelling, garage, and surrounding one acre of 
property on a nonhomestead farm classified under subdivision 23, 
paragraph (b).  
     Class 4b property has a class rate of 2.8 percent of market 
value for taxes payable in 1992, 2.5 percent of market value for 
taxes payable in 1993, and 2.3 percent of market value for taxes 
payable in 1994 and thereafter. 
     (c) Class 4c property includes: 
     (1) a structure that is:  
    (i) situated on real property that is used for housing for 
the elderly or for low- and moderate-income families as defined 
in Title II, as amended through December 31, 1990, of the 
National Housing Act or the Minnesota housing finance agency law 
of 1971 or rules promulgated by the agency and financed by a 
direct federal loan or federally insured loan made pursuant to 
Title II of the act; or 
    (ii) situated on real property that is used for housing the 
elderly or for low- and moderate-income families as defined by 
the Minnesota housing finance agency law of 1971, as amended, or 
rules adopted by the agency pursuant thereto and financed by a 
loan made by the Minnesota housing finance agency pursuant to 
the provisions of the act.  
    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 as defined in section 
42(c)(2) of the Internal Revenue Code of 1986, as amended 
through December 31, 1990, that (i) receives a low-income 
housing credit under section 42 of the Internal Revenue Code of 
1986, as amended through December 31, 1990; or (ii) meets the 
requirements of that section and receives public financing, 
except financing provided under sections 469.174 to 469.179, 
which contains terms restricting the rents; or (iii) meets the 
requirements of section 273.1317.  Classification pursuant to 
this clause is limited 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 unless the owner of the property 
elects to have the property assessed under Laws 1991, chapter 
291, article 1, section 55.  If the owner of the property elects 
to have the market value determined on the basis of the actual 
restricted rents, as provided in Laws 1991, chapter 291, article 
1, section 55, the property will be assessed at the rate 
provided for class 4a or class 4b property, as appropriate.  
Properties described in clauses (1)(ii), (3), and (4) may apply 
to the assessor for valuation under Laws 1991, chapter 291, 
article 1, section 55.  The land on which these structures are 
situated has the class rate given in paragraph (b) if the 
structure contains fewer than four units, and the class rate 
given in paragraph (a) if the structure contains four or more 
units.  This clause applies only to the property of a nonprofit 
or limited dividend entity.  
     (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 
317A; 
      (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 250 days in the year preceding the year of 
assessment.  For purposes of this clause, property is devoted to 
a commercial purpose on a specific day if any portion of the 
property is used, or available for use for residential 
occupancy, and a fee is charged for residential occupancy.  
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 250 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 
this clause also includes the remainder of class 1c resorts; 
     (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, 1990.  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; 
     (7) post-secondary student housing of not more than one 
acre of land that is owned by a nonprofit corporation organized 
under chapter 317A and is used exclusively by a student 
cooperative, sorority, or fraternity for on-campus housing or 
housing located within two miles of the border of a college 
campus; and 
     (8) manufactured home parks as defined in section 327.14, 
subdivision 3. 
     Class 4c property has a class rate of 2.3 percent of market 
value, except that seasonal residential recreational property 
not used for commercial purposes under clause (5) has a class 
rate of 2.2 percent of market value for taxes payable in 1992, 
and for taxes payable in 1993 and thereafter, the first $72,000 
of market value has a class rate of two percent and the market 
value that exceeds $72,000 has a class rate of 2.5 percent.  
     (d) Class 4d property includes: 
     (1) a structure that is: 
     (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 class rates in paragraph (c), clauses (1), (2), and (3) 
and this clause apply to the properties described in them, 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. 
     (2) For taxes payable in 1992, 1993 and 1994, only, 
buildings and appurtenances, together with the land upon which 
they are located, leased by the occupant under the community 
lending model lease-purchase mortgage loan program administered 
by the Federal National Mortgage Association, provided the 
occupant's income is no greater than 60 percent of the county or 
area median income, adjusted for family size and the building 
consists of existing single family or duplex housing.  The lease 
agreement must provide for a portion of the lease payment to be 
escrowed as a nonrefundable down payment on the housing.  To 
qualify under this clause, the taxpayer must apply to the county 
assessor by May 30 of each year.  The application must be 
accompanied by an affidavit or other proof required by the 
assessor to determine qualification under this clause. 
     (3) For taxes payable in 1992, 1993 and 1994, only, 
federally acquired buildings under four units and appurtenances, 
together with the land upon which they are located that is 
leased to a nonprofit corporation organized under chapter 317A 
that qualifies for tax exempt status under United States Code, 
title 26, section 501(c), or a housing and redevelopment 
authority authorized under sections 469.001 to 469.047; the 
purpose of the lease must be to allow the nonprofit corporation 
to provide transitional housing for homeless persons under the 
program established in Code of Federal Regulations, title 55, 
section 49489.  As used in this clause, "transitional housing" 
has the meaning given in section 268.38, subdivision 1, except 
that the two-year restriction does not apply.  If the property 
is purchased from the federal government by the nonprofit 
corporation for the purpose of continuing to provide 
transitional housing after the expiration of the lease, the 
property shall continue to be eligible for this classification.  
To qualify under this clause, the taxpayer must apply to the 
county assessor by May 30 of each year.  The application must be 
accompanied by an affidavit or other proof required by the 
county assessor to determine qualification under this clause.  
Property qualifying under this clause in 1992, 1993, or 1994 
continues to receive a two percent class rate until the 
five-year lease has expired provided that the property continues 
to be used for the purposes as described in this clause. 
    Class 4d property has a class rate of two 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 (3); paragraph (c), clause (1), (2), (3), or 
(4), is assessed at the class rate applicable to it under 
Minnesota Statutes 1988, section 273.13, if it is found to be a 
substandard building under section 273.1316.  Residential rental 
property that would otherwise be assessed as class 4 property 
under paragraph (d) is assessed at 2.3 percent of market value 
if it is found to be a substandard building under section 
273.1316. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective for 
taxes levied in 1991, payable in 1992, and thereafter. 
    Sec. 13.  [CORRECTION 11.] 
    Minnesota Statutes 1991 Supplement, section 469.101, 
subdivision 23, is amended to read: 
    Subd. 23.  [SUPPLYING SMALL BUSINESS CAPITAL.] 
Notwithstanding any contrary law, the authority may participate 
with public or private corporations or other entities, whose 
purpose is to provide seed or venture capital to small 
businesses that have facilities located or to be located in the 
district.  For that purpose the authority may use not more than 
.... ten percent of available annual net income or 
$.... $1,000,000 annually, whichever is less, to invest in 
equities or acquire equity-type investments.  These investments 
can be made directly in eligible corporations or entities or 
acquired through participation in a public or private seed or 
venture capital fund.  The participation by the authority may 
not exceed in any year 25 percent of the total amount of funds 
provided for venture or seed capital purposes by all of the 
participants.  The corporation, entity, or fund shall report in 
writing each six months to the commissioners of the authority 
all investments and other action taken by it since the last 
report.  Funds contributed to the corporation or entity must be 
invested pro rata with each contributor of capital taking 
proportional risks on each investment.  As used in this 
subdivision, the term "small business" has the meaning given it 
in section 645.445, subdivision 2. 
    Sec. 14.  [CORRECTION 14.] 
    Subdivision 1.  The amendment to Minnesota Statutes 1990, 
section 92.67, subdivision 1, made by Laws 1991, chapter 254, 
article 2, section 23, is of no effect. 
    Subd. 2.  Minnesota Statutes 1990, section 92.46, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PUBLIC CAMPGROUNDS.] (a) The director may 
designate suitable portions of the state lands withdrawn from 
sale and not reserved, as provided in section 92.45, as 
permanent state public campgrounds.  The director may have the 
land surveyed and platted into lots of convenient size, and 
lease them for cottage and camp purposes under terms and 
conditions the director prescribes, subject to the provisions of 
this section.  
    (b) A lease may not be for a term more than 20 years.  The 
lease may allow renewal, from time to time, for additional terms 
of no longer than 20 years each.  The lease may be canceled by 
the commissioner 90 days after giving the person leasing the 
land written notice of violation of lease conditions.  The lease 
rate shall be based on the appraised value of leased land as 
determined by the commissioner of natural resources and shall be 
adjusted by the commissioner at the fifth, tenth, and 15th 
anniversary of the lease, if the appraised value has increased 
or decreased.  For leases that are renewed in 1991 and following 
years, the lease rate shall be five percent of the appraised 
value of the leased land.  The appraised value shall be the 
value of the leased land without any private improvements and 
must be comparable to similar land without any improvements 
within the same county.  The minimum appraised value that the 
commissioner assigns to the leased land must be substantially 
equal to the county assessor's estimated market value of similar 
land adjusted by the assessment/sales ratio as determined by the 
department of revenue. 
    (c) By July 1, 1986, the commissioner of natural resources 
shall adopt rules under chapter 14 to establish procedures for 
leasing land under this section.  The rules shall be subject to 
review and approval by the commissioners of revenue and 
administration prior to the initial publication pursuant to 
chapter 14 and prior to their final adoption.  The rules must 
address at least the following: 
    (1) method of appraising the property; and 
    (2) an appeal procedure for both the appraised values and 
lease rates. 
    (d) All money received from these leases must be credited 
to the fund to which the proceeds of the land belong.  
    Notwithstanding section 16A.125 or any other law to the 
contrary, 50 percent of the money received from the lease of 
permanent school fund lands leased pursuant to this subdivision 
shall be deposited into the permanent school trust fund.  
However, in fiscal years 1987, 1988, 1989, 1990, 1991, and 1992, 
1993, and 1994, the money received from the lease of permanent 
school fund lands that would otherwise be deposited into the 
permanent school fund is hereby appropriated to survey, 
appraise, and pay associated selling costs of lots as required 
in section 92.67, subdivision 3.  The money appropriated may not 
be used to pay the cost of surveying lots not scheduled for 
sale.  Any money designated for deposit in the permanent school 
fund that is not needed to survey, appraise, and pay associated 
selling costs of lots, as required in section 92.67, shall be 
deposited in the permanent school fund.  The commissioner shall 
add to the appraised value of any lot offered for sale the costs 
of surveying, appraising, and selling the lot, and shall first 
deposit into the permanent school fund an amount equal to the 
costs of surveying, appraising, and selling any lot paid out of 
the permanent school fund.  Any remaining money shall be 
deposited into any other contributing funds in proportion to the 
contribution from each fund.  In no case may the commissioner 
add to the appraised value of any lot offered for sale an amount 
more than $700 for the costs of surveying and appraising the lot.
    Sec. 15.  [CORRECTION 12.] 
    Laws 1991, chapter 345, article 1, section 17, subdivision 
3, is amended to read: 
Subd. 3.  Intertechnologies Group
    10,954,000      5,431,000
               Summary by Fund
General     6,794,000 5,494,000     1,271,000
Special Revenue       4,160,000     4,160,000
 The appropriation from the special 
revenue fund is for recurring costs of 
911 emergency telephone service.  
 $3,900,000 is appropriated as a loan 
from the general fund to the STARS 
revolving fund.  This amount shall be 
repaid before the end of the biennium.  
Notwithstanding any law to the 
contrary, the commissioner of 
administration shall have authority to 
transfer contributed capital between 
department of administration internal 
service or enterprise funds.  
Notwithstanding any other law to the 
contrary, the commissioner of 
administration may, with the approval 
of the commissioner of finance, make 
loans from an internal service or 
enterprise fund to another internal 
service or enterprise fund. 
 $150,000 the first year is for the 
commissioner of the department of 
administration and the STARS staff to 
conduct a study to develop models for 
the use of STARS telecommunications 
regions under joint powers or other 
agreements.  The models shall be used 
to: 
 (1) coordinate development of 
applications or programs that combine 
the needs of education, state and local 
governments, or other public sector 
users of STARS services; 
 (2) determine the local 
telecommunications approaches that work 
best to distribute applications or 
programs transported by STARS within 
the region; and 
 (3) identify needs for shared video 
facilities and develop agreements and 
ways to prioritize or schedule their 
use equitably. 
 The study shall focus on current and 
future telecommunications needs that 
result from joint activities of STARS 
customers in the two telecommunications 
regions that will be served by STARS 
from Duluth and Rochester and shall 
describe pilot projects that could be 
used to validate the study findings. 
 The study shall be submitted to the 
appropriate committees of the 
legislature by December 31, 1991. 
 $201,100 the first year and $205,800 
the second year must be subtracted from 
the amount that would otherwise be 
payable to local government aid under 
Minnesota Statutes, chapter 477A, in 
order to fund the local government 
records program and the 
intergovernmental information systems 
activity. 
    Sec. 16.  [CORRECTION 13.] 
    Laws 1991, chapter 345, article 1, is amended by adding a 
section to read: 
    Sec. 119.  [EFFECTIVE DATE.] 
    Sections 91 and 117, subdivision 6, are effective January 
1, 1993. 
    Sec. 17.  Laws 1991, chapter 292, article 1, section 6, 
subdivision 2, is amended to read: 
    Subd. 2.  [COMMUNITY SERVICES.] 
           40,043,000              40,329,000
 The commissioner of finance shall 
adjust the base for the county 
probation reimbursement program, 
described in Minnesota Statutes, 
section 260.311, subdivision 5, to a 
level that allows the state to maintain 
a 50 percent reimbursement level to 
counties for the biennium beginning 
July 1, 1993. 
 During the biennium ending June 30, 
1993, whenever offenders are assigned 
for the purpose of work under agreement 
with a state department or agency, 
local unit of government, or other 
government subdivision, the state 
department or agency, local unit of 
government, or other government 
subdivision must certify to the 
appropriate bargaining agent that the 
work performed by inmates will not 
result in the displacement of currently 
employed workers or workers on seasonal 
layoff or layoff from a substantially 
equivalent position, including partial 
displacement such as reduction in hours 
of nonovertime work, wages, or other 
employment benefits. 
 Notwithstanding Minnesota Statutes, 
section 609.105 or any other provision 
of law to the contrary, a felony 
offender sentenced in a community 
corrections act county may not be 
committed to the custody of the 
commissioner of corrections under an 
executed sentence of imprisonment if 
the time remaining in the offender's 
sentence, minus credit for prior 
imprisonment, is 60 days or less unless 
the offender's sentence was 
presumptively executed under the 
sentencing guidelines.  Notwithstanding 
any provision of law to the contrary, 
these offenders may be sentenced to 
imprisonment in a local jail or 
workhouse.  This does not apply 
provision applies to offenders whose 
sentences were executed at the time of 
sentencing and to offenders whose 
sentences were executed after 
revocation of a stayed felony sentence. 
    Sec. 18.  [CORRECTION 20.] 
    Minnesota Statutes 1990, section 490.123, is amended by 
adding a subdivision to read: 
    Subd. 1c.  [ADDITIONAL EMPLOYER CONTRIBUTION.] In the event 
that the employer contribution under subdivision 1b and the 
assets of the judges retirement fund are insufficient to meet 
reserve transfers to the Minnesota postretirement investment 
fund or payments of survivor benefits before July 1, 1993, the 
necessary amount is appropriated from the general fund to the 
executive director of the Minnesota state retirement system, 
upon certification by the executive director to the commissioner 
of finance. 
    Sec. 19.  [CORRECTION 21.] 
    Subdivision 1.  [SALES TAX; OCCASIONAL SALES.] Minnesota 
Statutes 1991 Supplement, section 297A.25, subdivision 12, is 
amended to read: 
    Subd. 12.  [OCCASIONAL SALES.] (a) The gross receipts from 
the isolated or occasional sale of tangible personal property in 
Minnesota not made in the normal course of business of selling 
that kind of property, and the storage, use, or consumption of 
property acquired as a result of such a sale are exempt.  
    (b) This exemption does not apply to sales of tangible 
personal property primarily used in a trade or business unless 
(1) the sale occurs in a transaction subject to or described in 
section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 
1031, or 1033 of the Internal Revenue Code of 1986, as amended 
through December 31, 1990, or; (2) the sale is between members 
of an affiliated group as defined in section 1504(a) of the 
Internal Revenue Code of 1986, as amended through December 31, 
1990; (3) the sale is a sale of farm machinery; (4) the sale is 
a farm auction sale; or (5) the sale is a sale of substantially 
all of the assets of a trade or business conducted by an 
individual or by a partnership all of the partners of which are 
individuals. 
    For purposes of this subdivision, a "farm auction" is a 
public auction conducted by a licensed auctioneer if 
substantially all of the property sold consists of property used 
in the trade or business of farming and property not used 
primarily in a trade or business. 
    Subd. 2.  [EFFECTIVE DATE.] 
    Subdivision 1 is effective retroactive for sales made after 
June 30, 1991.  No refunds of tax may be paid under this section 
except as provided in this subdivision.  A purchaser must file a 
claim for refund containing the information required in section 
289A.50 and any other information required by the commissioner, 
including receipts or other proof of payment.  A purchaser is 
considered a taxpayer for purposes of section 289A.50.  
Notwithstanding section 289A.50, subdivision 2, a vendor who has 
collected a tax from the purchaser may not claim a refund under 
this section. 
    Sec. 20.  [FINAL FOUR CORRECTION.] 
    Subdivision 1.  Laws 1991, chapter 333, section 38, is 
amended to read: 
    Sec. 38.  [TEMPORARY AUTHORITY; CHARTER CARRIERS OF 
PASSENGERS.] 
    (a) The transportation regulation board may issue a 
temporary permit to a motor carrier to operate as a charter 
carrier of passengers if the board finds that: 
    (1) the service to be provided under the temporary 
certificate will be provided during the month of January 1992 in 
connection with or related to the 1992 National Football League 
championship game or during the last week in March through the 
second week in April 1992 in connection with or related to the 
1992 NCAA Men's Basketball Final Four Tournament; 
    (2) the petitioner for the temporary permit is fit and able 
to conduct the proposed operations; and 
    (3) the petitioner's vehicles meet the applicable safety 
standards of the commissioner of transportation. 
    (b) Notwithstanding Minnesota Statutes, section 221.121, 
subdivision 2, a holder of a temporary permit under this section 
is not required to seek a permanent permit from the board.  The 
board may charge a registration fee of not more than $10 for 
each vehicle that will be operated under authority of the 
permit.  All permits issued by the board under this section 
expire on a date specified in the permit, but not later than 
January 31 April 15, 1992. 
    (c) All provisions of Minnesota Statutes, chapter 221, not 
inconsistent with this section, apply to permits issued under 
this section. 
    (d) In granting temporary permits under this section, the 
board shall, to the maximum feasible extent, give priority to 
Minnesota-based carriers. 
    Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
day following its final enactment. 
    Sec. 21.  [EFFECTIVE DATE.] 
    Sections 13 and 17 take effect the day after final 
enactment. 

                                ARTICLE 2

                     CORRECTIONS, EDUCATION FUNDING
    Section 1.  [CORRECTION AA.] 
    Laws 1991, chapter 265, article 6, section 67, subdivision 
1, is amended to read: 
    Sec. 67.  [REPEALER.] 
    Subdivision 1.  [JULY 1, 1991.] Minnesota Statutes 1990, 
sections 124C.02; 136D.27, subdivision 1; 136D.74, subdivision 
2; 136D.76, subdivision 3; 136D.87, subdivision 1; and 275.125, 
subdivisions subdivision 8d, are repealed. 
    Sec. 2.  [CORRECTION CC.] 
    Minnesota Statutes 1991 Supplement, section 136D.90, 
subdivision 2, is repealed. 
    Sec. 3.  [CORRECTION GG.] 
    Minnesota Statutes 1991 Supplement, section 126.22, 
subdivision 8, is amended to read: 
    Subd. 8.  [ENROLLMENT VERIFICATION.] For a pupil attending 
an eligible program full time under subdivision 3, paragraph 
(d), the department of education shall pay 88 percent of the 
basic revenue of the district to the eligible program and 12 
percent of the basic revenue to the resident district within 30 
days after the eligible program verifies enrollment using the 
form provided by the department.  For a pupil attending an 
eligible program part time, basic revenue shall be reduced 
proportionately, according to the amount of time the pupil 
attends the program, and the payments to the eligible program 
and the resident district shall be reduced accordingly.  A pupil 
for whom payment is made according to this section may not be 
counted by any district for any purpose other than computation 
of basic revenue, according to section 124A.22, subdivision 2.  
If payment is made for a pupil under this subdivision, a school 
district shall not reimburse a program under section 126.23 for 
the same pupil. 
    Sec. 4.  [CORRECTION HH.] 
    Laws 1991, chapter 265, article 4, section 34, is amended 
to read: 
    Sec. 34.  [EFFECTIVE DATE.] 
    Section 10, subdivision 4, is effective July 1, 1991.  
Section 10, subdivisions 1, 2, 3, 5, 6, and 7, are effective 
July 1, 1992.  Reimbursements according to Section 11 are 
available is effective July 1, 1992. 
    Sec. 5.  [CORRECTION JJ.] 
    Minnesota Statutes 1991 Supplement, section 124.2615, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
15, 1991 1992, for the 1991-1992 school year or by January 1 of 
subsequent school years, a district must submit to the 
commissioners of education, health, human services, and jobs and 
training:  
    (1) a description of the services to be provided; 
    (2) a plan to ensure children at greatest risk receive 
appropriate services; 
    (3) a description of procedures and methods to be used to 
coordinate public and private resources to maximize use of 
existing community resources, including school districts, health 
care facilities, government agencies, neighborhood 
organizations, and other resources knowledgeable in early 
childhood development; 
    (4) comments about the district's proposed program by the 
advisory council required by section 121.831, subdivision 7; and 
    (5) agreements with all participating service providers.  
    Each commissioner may review and comment on the program, 
and make recommendations to the commissioner of education, 
within 30 days of receiving the plan. 
    Sec. 6.  [CORRECTION MM.] 
    Minnesota Statutes 1991 Supplement, section 122.895, 
subdivision 5, is amended to read: 
    Subd. 5.  [RIGHTS OF OTHER TEACHERS UPON DISSOLUTION.] (a) 
This subdivision applies to a teacher who: 
    (1) has a continuing contract with the cooperative; and 
    (2) either did not have a continuing contract with any 
member district or does not return to a member district 
according to the procedures set forth in subdivision 4, 
paragraph (b). 
    (b) By May 10 of the school year in which the cooperative 
provides the notice required by subdivision 3, clause (1), the 
cooperative shall provide to each teacher described in 
subdivision 4 and this subdivision a written notice of available 
teaching positions in any member district to which the 
cooperative was providing services at the time of dissolution.  
Available teaching positions are all teaching positions that, 
during the school year following dissolution: 
    (1) are positions for which the teacher is licensed; and 
    (2) are not assigned to a continuing contract teacher 
employed by a member school district after any reasonable 
realignments which may be necessary under the applicable 
provisions of section 125.12, subdivision 6a or 6b, to 
accommodate the seniority rights of teachers employed by the 
member district. 
     (c) On or before June 1 of the school year in which the 
cooperative provides the notice required by subdivision 3, 
clause (1), any teacher wishing to do so must file with the 
school board a written notice of the teacher's intention to 
exercise the teacher's rights to an available teaching 
position.  Available teaching positions shall be offered to 
teachers in order of their seniority within the dissolved 
cooperative. 
     (d) Paragraph (e) applies to: 
     (1) a district that was a member of a dissolved 
cooperative; or 
     (2) any other district that, except as a result of open 
enrollment according to section 120.062, provides essentially 
the same instruction provided by the dissolved cooperative to 
pupils enrolled in a former member district. 
     (e) For five years following dissolution of a cooperative, 
a district to which this subdivision paragraph applies may not 
appoint a new teacher or assign a probationary or provisionally 
licensed teacher to any position requiring licensure in a field 
in which the dissolved cooperative provided instruction until 
the following conditions are met: 
    (1) a district to which this subdivision paragraph applies 
has provided each teacher formerly employed by the dissolved 
cooperative, who holds the requisite license, written notice of 
the position; and 
    (2) no teacher holding the requisite license has filed a 
written request to be appointed to the position with the school 
board within 30 days of receiving the notice. 
    If no teacher files a request according to clause (2), the 
district may fill the position as it sees fit.  During any part 
of the school year in which dissolution occurs and the first 
school year following dissolution, a teacher may file a request 
for an appointment according to this paragraph regardless of 
prior contractual commitments with other member districts.  
Available teaching positions shall be offered to teachers in 
order of their seniority on a combined seniority list of the 
teachers employed by the cooperative and the appointing district.
    (f) A teacher appointed according to this subdivision is 
not required to serve a probationary period.  The teacher shall 
receive credit on the appointing district's salary schedule for 
the teacher's years of continuous service under contract with 
the cooperative and the member district and the teacher's 
educational attainment at the time of appointment or shall 
receive a comparable salary, whichever is less.  The teacher 
shall receive credit for accumulations of sick leave and rights 
to severance benefits as if the teacher had been employed by the 
member district during the teacher's years of employment by the 
cooperative.  
    Sec. 7.  [EFFECTIVE DATE.] 
    The amendments made by corrections AA, GG, and JJ are 
effective July 1, 1991. 
    Presented to the governor January 16, 1992 
    Signed by the governor January 17, 1992, 2:45 p.m.