Office of the Revisor of Statutes
Minnesota Session Laws - 1992, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1992
CHAPTER 592-S.F.No. 2194
An act relating to authorizing two additional deputies
in the state auditor's office; regulating certain
investments; providing for certain audits, reports,
and payments; prohibiting monetary compensation for
unused vacation or sick leave to certain state and
local officers; setting conditions for certain state
laws; prohibiting the use of pictures of elected
officials in certain local government publications;
requiring that airline travel credit accrue to the
issuing public body and requiring policies covering
the benefits issued by airlines for travel paid for by
public funds; amending Minnesota Statutes 1990,
sections 6.02; 11A.24, subdivision 6; 13.76, by adding
a subdivision; 15A.082, by adding a subdivision;
367.36, subdivision 1; 412.222; 462.396, subdivision
4; 471.49, by adding a subdivision; 471.66; 471.68, by
adding a subdivision; 471.696; 471.697; 471.6985;
477A.017, subdivision 2; 609.415, subdivision 1;
proposing coding for new law in Minnesota Statutes,
chapters 279; and 609; repealing Minnesota Statutes
1991 Supplement, section 128B.10, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1990, section 6.02, is
amended to read:
6.02 [DEPUTY DEPUTIES, EMPLOYEES.]
The state auditor shall appoint a deputy, who may perform
all the duties of the office when the auditor is absent or
disabled. The state auditor may employ and at pleasure dismiss
two additional deputies and a private secretary. This section
does not increase the complement of the state auditor.
Sec. 2. Minnesota Statutes 1990, section 11A.24,
subdivision 6, is amended to read:
Subd. 6. [OTHER INVESTMENTS.] (a) In addition to the
investments authorized in subdivisions 1 to 5, and subject to
the provisions in clause (b), the state board may invest funds
in:
(1) venture capital investment businesses through
participation in limited partnerships and corporations;
(2) real estate ownership interests or loans secured by
mortgages or deeds of trust through investment in limited
partnerships, bank sponsored collective funds, trusts, and
insurance company commingled accounts, including separate
accounts;
(3) regional and mutual funds through bank sponsored
collective funds and open-end investment companies registered
under the Federal Investment Company Act of 1940;
(4) resource investments through limited partnerships,
private placements and corporations; and
(5) debt obligations not subject to subdivision 3; and
(6) international securities.
(b) The investments authorized in clause (a) must conform
to the following provisions:
(1) the aggregate value of all investments made according
to clause (a) may not exceed 35 percent of the market value of
the fund for which the state board is investing;
(2) there must be at least four unrelated owners of the
investment other than the state board for investments made under
paragraph (a), clause (1), (2), (3), or (4);
(3) state board participation in an investment vehicle is
limited to 20 percent thereof for investments made under
paragraph (a), clause (1), (2), (3), or (4); and
(4) state board participation in a limited partnership does
not include a general partnership interest or other interest
involving general liability. The state board may not engage in
any activity as a limited partner which creates general
liability.
Sec. 3. Minnesota Statutes 1990, section 13.76, is amended
by adding a subdivision to read:
Subd. 3. [BUSINESSES SEEKING STATE INCENTIVES.]
Notwithstanding subdivision 1, any business seeking $250,000 or
more in financial assistance from the state of Minnesota in the
form of grants, loans, or tax incentives shall make available
for public inspection its audited financial statements for the
three most recent years. These statements shall include all
information that would be required by the United States
Securities and Exchange Commission prior to any public stock
offering. This subdivision does not apply to financial
assistance sought from the iron range resources and
rehabilitation board or from a political subdivision of the
state, including home rule charter and statutory cities, towns,
counties, and all agencies, commissions, and councils
established under chapter 473, as well as any authority or
agency of such a political subdivision.
Sec. 4. Minnesota Statutes 1990, section 15A.082, is
amended by adding a subdivision to read:
Subd. 4a. [CONSTITUTIONAL OFFICERS.] No constitutional
officer whose compensation is set under this section may receive
monetary compensation for unused vacation or sick leave accruals.
Sec. 5. [279.025] [PAYMENT OF DELINQUENT PROPERTY TAXES,
SPECIAL ASSESSMENTS.]
Payment of delinquent property tax and related interest and
penalties and special assessments shall be paid to the county
auditor with United States currency or by check or money order
drawn on a bank or other financial institution in the United
States.
Sec. 6. Minnesota Statutes 1990, section 367.36,
subdivision 1, is amended to read:
Subdivision 1. [INCUMBENT TREASURER; ANNUAL AUDIT.] In a
town in which option D is adopted, the incumbent treasurer shall
continue in office until the expiration of the term. Thereafter
the duties of the treasurer prescribed by law shall be performed
by the clerk who shall be referred to as the clerk-treasurer.
If the offices of clerk and treasurer are combined, the town
board shall provide for an annual audit of the town's financial
affairs by the state auditor or a public accountant in
accordance with minimum audit procedures prescribed by the state
auditor. Upon completion of an audit by a public accountant,
the public accountant shall forward a copy of the audit to the
state auditor. For purposes of this subdivision, "public
accountant" means a certified public accountant, a certified
public accounting firm, or a licensed public accountant, all
licensed by the board of accountancy under sections 326.17 to
326.23.
Sec. 7. Minnesota Statutes 1990, section 412.222, is
amended to read:
412.222 [PUBLIC ACCOUNTANTS IN STATUTORY CITIES.]
The council of any city may employ public accountants on a
monthly or yearly basis for the purpose of auditing, examining,
and reporting upon the books and records of account of such
city. For the purpose of this section public accountants are
defined as any individuals who for a period of five years prior
to the date of such employment have been actively engaged
exclusively in the practice of public accounting, "public
accountant" means a certified public accountant, a certified
public accounting firm, or a licensed public accountant, all
licensed by the board of accountancy under sections 326.17 to
326.23. All expenditures for these purposes shall be within the
statutory limits upon tax levies in such cities.
Sec. 8. Minnesota Statutes 1990, section 462.396,
subdivision 4, is amended to read:
Subd. 4. The commission shall keep an accurate account of
its receipts and disbursement. Disbursements of funds of the
commission shall be made by check signed by the chair or
vice-chair or secretary of the commission and countersigned by
the executive director or an authorized deputy thereof after
such auditing and approval of the expenditure as may be provided
by rules of the commission. The state auditor shall audit the
books and accounts of the commission once each year, or as often
as funds and personnel of the state auditor permit. The
commission shall pay to the state the total cost and expenses of
such examination, including the salaries paid to the auditors
while actually engaged in making such examination. The general
fund shall be credited with all collections made for any such
examination. In lieu of an annual audit by the state auditor,
the commission may contract with a certified public accountant
for the annual audit of the books and accounts of the
commission. If a certified public accountant performs the
audit, the commission shall send a copy of the audit to the
state auditor.
Sec. 9. Minnesota Statutes 1990, section 471.49, is
amended by adding a subdivision to read:
Subd. 10. [PUBLIC ACCOUNTANT.] "Public accountant" means a
certified public accountant, a certified public accounting firm,
or a licensed public accountant, all licensed by the board of
accountancy under sections 326.17 to 326.23.
Sec. 10. Minnesota Statutes 1990, section 471.66, is
amended to read:
471.66 [VACATIONS.]
Subdivision 1. Hereafter The governing body of each city
and town in the state of Minnesota, however organized, may by
resolution or ordinance provide for the granting of vacations,
with or without pay, to all its regularly employed employees or
officers, upon such terms and under such conditions as said
governing body may determine, and subject to such requirements
as to length of service with such municipality as said governing
body may require.
Subd. 2. Nothing in the foregoing provisions subdivision 1
shall be construed as retroactive in its purpose or intent so as
to give the governing body of any such city or town the right to
grant vacations based on service of its employees or officers
rendered prior to the enactment of such ordinance or resolution.
Subd. 3. No elected official of a statutory or home rule
charter city, county, town, school district, metropolitan or
regional agency, or other political subdivision of this state,
may receive monetary compensation for unused vacation or sick
leave accruals. Nothing in this subdivision shall restrict an
elected official from taking vacation or sick leave time that
may be provided for by resolution or ordinance of the governing
body of a statutory or home rule charter city, county, town,
school district, metropolitan or regional agency, or other
political subdivision of this state.
Sec. 11. Minnesota Statutes 1990, section 471.68, is
amended by adding a subdivision to read:
Subd. 3. [PICTURES PROHIBITED.] When a statutory or home
rule charter city, county, town, school district, metropolitan
or regional agency, or other political subdivision of this
state, issues a report or other publication for public
distribution to inform the general public of the activities of
the political subdivision, the report or publication must not
include pictures of elected officials nor any other pictorial or
graphic device that would tend to attribute the publication to
an individual or groups of individuals instead of the political
subdivision. Directories of public services provided by the
political subdivision are exempt from this subdivision.
Sec. 12. Minnesota Statutes 1990, section 471.696, is
amended to read:
471.696 [FISCAL YEAR; DESIGNATION.]
Beginning in 1979, the fiscal year of a city and all of its
funds shall be the calendar year, except that a city may, by
resolution, provide that the fiscal year for city-owned nursing
homes be the reporting year designated by the commissioner of
human services. Beginning in 1994, the fiscal year of a town
and all of its funds shall be the calendar year. The state
auditor may upon request of a city town and a showing of
inability to conform, extend the deadline for compliance with
this section for one year, except that a city may, by
resolution, provide that the fiscal year for city owned nursing
homes be the reporting year designated by the commissioner of
human services.
Sec. 13. Minnesota Statutes 1990, section 471.697, is
amended to read:
471.697 [FINANCIAL REPORTING; AUDITS; CITIES AND TOWNS OF
MORE THAN 2,500 POPULATION.]
Subdivision 1. In any city with a population of more than
2,500 according to the latest federal census, or town with a
population of more than 2,500 according to the latest federal
census with an annual revenue of $500,000 or more, the city
clerk or, chief financial officer, town clerk, or town
clerk-treasurer shall:
(a) Prepare a financial report covering the city's or
town's operations including operations of municipal hospitals
and nursing homes, liquor stores, and public utility commissions
during the preceding fiscal year after the close of the fiscal
year and. Cities shall publish the report or a summary of the
report, in a form as prescribed by the state auditor, in a
qualified newspaper of general circulation in the city or, if
there is none, post copies in three of the most public places in
the city, no later than 30 days after the report is due in the
office of the state auditor. The report shall contain financial
statements and disclosures which present the city's or town's
financial position and the results of city or town operations in
conformity with generally accepted accounting principles. The
report shall include such information and be in such form as may
be prescribed by the state auditor;
(b) File the financial report in the clerk's or financial
officer's office for public inspection and present it to the
city council or town board after the close of the fiscal year.
One copy of the financial report shall be furnished to the state
auditor after the close of the fiscal year; and
(c) Submit to the state auditor audited financial
statements which have been attested to by a certified public
accountant, public accountant, or the state auditor within 180
days after the close of the fiscal year, except that the state
auditor may upon request of a city or town and a showing of
inability to conform, extend the deadline. The state auditor
may accept this report in lieu of the report required in clause
(b) above.
A municipal hospital or nursing home established before
June 6, 1979 whose fiscal year is not a calendar year on August
1, 1980 is not subject to this subdivision but shall submit to
the state auditor a detailed statement of its financial affairs
audited by a certified public accountant, a public accountant or
the state auditor no later than 120 days after the close of its
fiscal year. It may also submit a summary financial report for
the calendar year.
Subd. 2. The state auditor shall continue to audit cities
of the first class pursuant to section 6.49.
Sec. 14. Minnesota Statutes 1990, section 471.6985, is
amended to read:
471.6985 [FINANCIAL STATEMENT PUBLICATION REPORTING;
AUDITS; MUNICIPAL LIQUOR STORE.]
Subdivision 1. Any city operating a municipal liquor store
shall publish a balance sheet using generally accepted
accounting procedures and a statement of operations of the
liquor store within 90 days after the close of the fiscal year
in the official newspaper of the city. The statement shall be
headlined, in a type size no smaller than 18-point: "Analysis
of ......(city)...... municipal liquor store operations for
......(year)...." and shall be written in clear and easily
understandable language. It shall contain the following
information: total sales, cost of sales, gross profit, profit
as percent of sales, operating expenses, operating income,
contributions to and from other funds, capital outlay, interest
paid and debt retired. The form and style of the statement
shall be prescribed by the state auditor. Nonoperating expenses
may not be extracted on the reporting form prior to
determination of net profits for reporting purposes only.
Administrative expenses charged to the liquor store by the city
must be actual operating expenses and not used for any other
public purpose prior to the determination of net profits. The
publication requirements of this section shall be in addition to
any publication or posting requirements for financial reports
contained in sections 471.697 and 471.698. The statement may at
the option of the city council be incorporated into the reports
published pursuant to sections 471.697 and 471.698, in
accordance with a form and style prescribed by the state auditor.
Subd. 2. Any city operating a municipal liquor store with
total annual sales in excess of $350,000 shall submit to the
state auditor audited financial statements for the liquor store
that have been attested to by a certified public accountant,
public accountant, or the state auditor within 180 days after
the close of the fiscal year, except that the state auditor may
extend the deadline upon request of a city and a showing of
inability to conform. The state auditor may accept this report
in lieu of the report required by subdivision 1.
Sec. 15. Minnesota Statutes 1990, section 477A.017,
subdivision 2, is amended to read:
Subd. 2. [STATE AUDITOR'S DUTIES.] The state auditor shall
prescribe uniform financial accounting and reporting standards
in conformity with national standards to be applicable to cities
and towns of more than 2,500 population and uniform reporting
standards to be applicable to cities of less than 2,500
population.
Sec. 16. Minnesota Statutes 1990, section 609.415,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] As used in sections 609.415
to 609.465, and 609.515,
(1) "Public officer" means:
(a) an executive or administrative officer of the state or
of a county, municipality or other subdivision or agency of the
state;
(b) a member of the legislature or of a governing board of
a county, municipality, or other subdivision of the state, or
other governmental instrumentality within the state;
(c) a judicial officer;
(d) a hearing officer;
(e) a law enforcement officer; or
(f) any other person exercising the functions of a public
officer.
(2) "Public employee" means a person employed by or acting
for the state or a county, municipality, or other subdivision or
governmental instrumentality of the state for the purpose of
exercising their respective powers and performing their
respective duties, and who is not a public officer.
(3) "Judicial officer" means a judge, court commissioner,
referee, or any other person appointed by a judge or court to
hear or determine a cause or controversy.
(4) "Hearing officer" means any person authorized by law or
private agreement to hear or determine a cause or controversy
who is not a judicial officer.
(5) "Political subdivision" means a county, town, statutory
or home rule charter city, school district, special service
district, or other municipal corporation of the state of
Minnesota.
Sec. 17. [609.456] [REPORTING TO STATE AUDITOR REQUIRED.]
Whenever a public employee or public officer of a political
subdivision discovers evidence of theft, embezzlement, or
unlawful use of public funds or property, the employee or
elected official shall, except when to do so would knowingly
impede or otherwise interfere with an ongoing criminal
investigation, promptly report in writing to the state auditor a
detailed description of the alleged incident or incidents.
Sec. 18. [PROPERTY TAXES AND SPECIAL ASSESSMENTS; HRA
AGREEMENT.]
If before August 1, 1990, a housing and redevelopment
authority has entered into an agreement with the owner to
improve the property in the redevelopment area, all property
taxes and special assessments payable to the political
subdivisions on that property in the redevelopment area are not
subject to the limitation in Laws 1991, chapter 336, article 2,
section 11, clause (9).
Sec. 19. [NEWSPAPER; QUALIFICATION.]
A newspaper otherwise in compliance with Minnesota
Statutes, section 331A.02, subdivision 1, between September 1,
1991, and December 31, 1991, shall not be deemed to have lost
its qualified status because any issue published between
September 1, 1991, and December 31, 1991, failed to include the
minimum number of column-inches required by Minnesota Statutes,
section 331A.02, subdivision 1.
Sec. 20. [AIRLINE TRAVEL CREDIT.]
(a) Whenever public funds are used to pay for airline
travel by an elected official or public employee, any credits or
other benefits issued by any airline must accrue to the benefit
of the public body providing the funding. In the event the
issuing airline will not honor a transfer or assignment of any
credit or benefit, the individual passenger shall report receipt
of the credit or benefit to the public body issuing the initial
payment within 90 days of receipt.
(b) By July 1, 1993, the appropriate authorities in the
executive, legislative, and judicial branches of the state and
the governing body of each political subdivision shall develop
and implement policies covering accrual of credits or other
benefits issued by an airline whenever public funds are used to
pay for airline travel by a public employee or an elected or
appointed official. The policies must apply to all airline
travel, regardless of where or how tickets are purchased. The
policies must include procedures for reporting receipt of
credits or other benefits.
Sec. 21. [REPEALER.]
Minnesota Statutes 1991 Supplement, section 128B.10,
subdivision 2, is repealed.
Sec. 22. [EFFECTIVE DATE.]
Section 19 is effective the day following enactment.
Section 18 is effective June 30, 1992.
Presented to the governor April 17, 1992
Signed by the governor April 29, 1992, 8:32 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes