Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

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

                              CHAPTER 7-H.F.No. 35 
                  An act relating to Minnesota Statutes; correcting 
                  erroneous, ambiguous, and omitted text and obsolete 
                  references; eliminating certain redundant, 
                  conflicting, and superseded provisions; making 
                  miscellaneous technical corrections to statutes and 
                  other laws; amending Minnesota Statutes 1996, sections 
                  3.873, subdivisions 5 and 7; 9.041, subdivision 2; 
                  13.99, subdivision 38b; 14.62, subdivision 3; 15.0591, 
                  subdivision 2; 15.441, subdivision 1; 15.471, 
                  subdivision 1; 16A.276; 16A.672, subdivisions 2 and 5; 
                  17.138, subdivision 2; 18.023, subdivision 3; 18B.33, 
                  subdivision 1; 18C.121, subdivision 1; 18C.575, 
                  subdivision 1; 18E.03, subdivision 4; 19.51, 
                  subdivision 1; 25.31; 25.32; 25.33; 25.34; 25.36; 
                  25.37; 25.39; 25.40; 25.41; 25.42; 25.43; 25.47, 
                  subdivision 2; 27.13; 27.14; 27.19; 27.20; 31.874; 
                  32.078; 32.481, subdivision 1; 32.532; 32.71, 
                  subdivision 1; 41.53, subdivision 2; 41A.09, 
                  subdivision 4; 45.027, subdivision 1; 60A.15; 62N.05, 
                  subdivision 1; 62N.24; 65A.16; 65A.17; 65A.18; 65A.19; 
                  65A.22; 65A.23; 65A.24; 84.027, subdivision 13; 92.46, 
                  subdivision 1; 103I.341, subdivision 1; 103I.535, 
                  subdivision 9; 115A.10; 115A.11, subdivision 1b; 
                  115A.12; 115A.9651, subdivision 1; 115B.20, 
                  subdivisions 1 and 2; 115B.39, subdivision 2; 
                  115B.412, subdivision 5; 115B.42, subdivision 2; 
                  116.07, subdivisions 4b and 10; 116C.91, subdivision 
                  1; 116J.75, subdivision 1; 119A.04, subdivision 5; 
                  119A.13, subdivisions 3 and 4; 119A.26, subdivision 2; 
                  119B.17, subdivision 3; 120.062, subdivision 12; 
                  120.075, subdivision 5; 120.0751, subdivision 6; 
                  120.0752, subdivision 4; 121.15, subdivision 1; 
                  121.1601, subdivision 3; 121.912, subdivision 1; 
                  124.155, subdivision 2; 124.248, subdivision 3; 
                  124.2725, subdivision 11; 124.3201, subdivisions 1 and 
                  2b; 124.321, subdivisions 1 and 2; 124.322, 
                  subdivisions 1a and 5; 124.323, subdivision 1; 
                  124.574, subdivision 7; 124.91, subdivision 1; 
                  124.918, subdivision 8; 124A.036, subdivision 5; 
                  124A.225, subdivision 2; 124A.26, subdivision 1; 
                  124A.711, subdivision 2; 124C.60, subdivisions 1 and 
                  3; 126.22, subdivision 7; 126.51, subdivision 1; 
                  126.72, subdivision 2; 136A.172; 136A.173; 136A.174; 
                  136A.175; 136A.176; 136A.177; 136A.178; 136D.94; 
                  144.056; 144.062; 144.092; 144A.073, subdivision 3; 
                  144A.33, subdivision 5; 144A.53, subdivision 1; 
                  144A.54, subdivisions 1 and 2; 145.894; 147A.13, 
                  subdivision 1; 148.235, subdivision 4; 148B.23, 
                  subdivision 3; 148C.11, subdivision 3; 152.02, 
                  subdivision 13; 152.21, subdivision 3; 161.10; 
                  161.1419, subdivision 7; 168.129, subdivision 1; 
                  169.145; 176.081, subdivision 1; 176.108; 176.1351, 
                  subdivisions 5 and 6; 176.1812, subdivision 7; 176.83, 
                  subdivision 5; 179A.03, subdivisions 7 and 14; 
                  179A.06, subdivision 2; 179A.09, subdivision 3; 
                  181.14; 181.15; 181.16; 182.676; 183.57, subdivision 
                  2; 192.551; 197.133; 197.447; 214.01, subdivision 2; 
                  214.07, subdivision 1; 214.13, subdivision 5; 216C.35; 
                  223.19; 237.70, subdivision 7; 237.711; 241.01, 
                  subdivision 3a; 242.56, subdivision 3; 244.09, 
                  subdivisions 7 and 13; 244.13, subdivision 3; 244.17, 
                  subdivision 2; 245.462, subdivision 16; 245.4881, 
                  subdivision 2; 245.4886, subdivision 2; 245.62, 
                  subdivisions 2 and 4; 245.69, subdivision 2; 245.697, 
                  subdivisions 2 and 3; 246.06; 246.64, subdivision 3; 
                  252.035; 252.275, subdivision 6; 252.291, subdivisions 
                  3 and 5; 252.40; 252.41, subdivision 1; 252.43; 
                  252.46, subdivision 1; 252.50, subdivision 6; 254A.16, 
                  subdivision 2; 256.01, subdivision 2; 256.016; 
                  256.736, subdivisions 3a and 7; 256.7365, subdivision 
                  7; 256.82, subdivision 4; 256.9742, subdivision 1; 
                  256B.04, subdivision 2; 256B.092, subdivision 6; 
                  256B.49, subdivision 2; 256D.03, subdivision 7; 
                  256D.04; 256E.04, subdivision 1; 256F.04, subdivision 
                  3; 257.072, subdivision 5; 257.0755, subdivision 1; 
                  257.0768, subdivision 1; 257.0769; 257.41; 259.71, 
                  subdivision 5; 260.152, subdivisions 2, 3, and 6; 
                  260.161, subdivision 3; 260.181, subdivision 3a; 
                  268.0122, subdivision 5; 268.0124; 268.03; 268.15, 
                  subdivision 3; 268.361, subdivision 1; 268.90, 
                  subdivision 3; 270A.09, subdivision 3; 272.12; 
                  273.1398, subdivision 1; 279.01, subdivision 3; 
                  280.05; 280.28, subdivision 2; 280.33; 280.35; 281.16; 
                  281.32; 282.07; 284.04; 290.091, subdivision 6; 
                  290.171; 297A.259; 299C.11; 299F.051, subdivision 3; 
                  299F.46, subdivision 1; 299L.02, subdivision 1; 
                  325F.84, subdivision 1; 326.2421, subdivision 2; 
                  327A.08; 345.48, subdivision 1; 349.19, subdivision 
                  2a; 353.64, subdivision 2; 353C.02; 354.66, 
                  subdivision 4; 360.013, subdivision 20; 360.015, 
                  subdivision 17; 363.05, subdivision 1; 383A.43, 
                  subdivision 6; 383B.78, subdivision 3; 383D.35; 
                  390.35; 412.191, subdivision 1; 412.581; 412.631; 
                  422A.01, subdivision 18; 427.02; 435.27; 458.40; 
                  458A.08; 462A.03, subdivision 10; 462A.07, subdivision 
                  7; 463.01; 465.15; 465.20; 466.03, subdivision 6d; 
                  469.078, subdivision 1; 469.141, subdivision 3; 
                  469.173, subdivision 7; 469.183, subdivision 4; 
                  471.9981, subdivision 1; 473.1623, subdivisions 3, 4, 
                  and 5; 473.206; 473.208; 473.3994, subdivision 9; 
                  473.598, subdivision 3; 473.638, subdivision 2; 
                  473.859, subdivision 2; 475.51, subdivision 9; 475.53, 
                  subdivision 1; 475.57; 475.61, subdivision 2; 480.242, 
                  subdivision 2; 500.24, subdivision 3; 508A.01, 
                  subdivision 3; 524.2-402; 525.152, subdivisions 1, 2, 
                  and 3; 609.101, subdivision 4; 611.216, subdivision 3; 
                  611.25, subdivision 3; 611A.56, subdivision 1; 
                  626.843; 626.845; 626.846; 626.847; 626.851; and 
                  626.88; Laws 1995 chapter 220, section 7, subdivision 
                  3; and Laws 1996, chapter 310, section 1; proposing 
                  coding for new law in Minnesota Statutes, chapter 35; 
                  repealing Minnesota Statutes 1996, sections 3.922, 
                  subdivision 9; 13.99, subdivisions 21d and 24a; 
                  15.475; 16B.87, subdivision 4; 17.452, subdivision 3; 
                  115A.03, subdivision 16; 116D.11, subdivision 4; 
                  116J.975; 124.2442; 124.245; 124.3202; 126.78, 
                  subdivision 5; 144.95, subdivision 9; 145A.12, 
                  subdivision 6; 148.578; 174.23, subdivision 5; 196.22, 
                  subdivision 4; 216C.06, subdivisions 10 and 11; 
                  246.57, subdivision 2; 254B.03, subdivision 8; 
                  256B.04, subdivision 11; 256B.0629, subdivision 3; 
                  256F.11, subdivision 3; 256F.12, subdivision 5; 
                  260.152, subdivision 7; 325F.98; 388.24, subdivision 
                  5; 466.01, subdivisions 4 and 5; 471A.02, subdivisions 
                  2 and 15; 473.638, subdivision 1; 473.639; 494.05, 
                  subdivision 3; 611.27, subdivision 14; and 611A.75; 
                  Laws 1989, chapters 209, article 2, section 42; and 
                  282, article 3, section 28; Laws 1991, chapter 292, 
                  article 2, section 2; Laws 1993, chapter 286, section 
                  1; Laws 1994, chapters 411, section 4; and 416, 
                  article 1, sections 47, 51, and 56; Laws 1995, 
                  chapters 171, sections 54 and 56; and 186, section 26; 
                  Laws 1995, First Special Session chapter 3, article 
                  13, section 2; and Laws 1996, chapters 414, article 1, 
                  section 30; and 471, article 11, section 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                                    GENERAL 
           Section 1.  [REPEALER; SECTION 13.99, SUBDIVISION 21d.] 
           Minnesota Statutes 1996, section 13.99, subdivision 21d, is 
        repealed. 
           Sec. 2.  [REPEALER; SECTION 13.99, SUBDIVISION 24a.] 
           Minnesota Statutes 1996, section 13.99, subdivision 24a, is 
        repealed. 
           Sec. 3.  Minnesota Statutes 1996, section 13.99, 
        subdivision 38b, is amended to read: 
           Subd. 38b.  [LEAD EXPOSURE DATA.] Data on individuals 
        exposed to lead in their residences are classified under 
        sections 144.874, subdivision 1, 144.9502, subdivision 9, and 
        144.9504, subdivision 2. 
           Sec. 4.  [REPEALER; SECTION 15.059 NOTE.] 
           Laws 1993, chapter 286, section 1, is repealed. 
           Sec. 5.  Minnesota Statutes 1996, section 16A.672, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION OF COMMERCIAL CODE.] All bonds and 
        certificates are securities under sections 336.8-101 to 
        336.8-408 336.8-603.  The commissioner may do for the state 
        whatever may or must be done under those sections to comply with 
        the orders authorizing them.  The bonds or certificates may be 
        issued:  
           (1) in one or more denominations; 
           (2) in bearer form, with interest coupons attached; and 
           (3) with provision for registration as to principal only; 
        or 
           (4) in fully registered form; and 
           (5) with provision for registration of conversion and 
        exchange of forms and denominations, transfer of ownership, and 
        replacement of lost or damaged bonds.  
           Sec. 6.  Minnesota Statutes 1996, section 16A.672, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REGISTRAR.] The commissioner, in order to issue 
        any bonds or certificates, may name a registrar to act for the 
        state under sections 336.8-101 to 336.8-408 336.8-603, and to 
        authenticate and deliver obligations upon initial issuance and 
        registration of transfer, exchange, or conversion.  The 
        registrar must be an incorporated bank or trust company, in or 
        out of the state, authorized by the laws of the United States or 
        the state in which it is located to perform these duties. 
           Sec. 7.  Minnesota Statutes 1996, section 18.023, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RULES; APPLICABILITY TO MUNICIPALITIES.] The 
        rules of the commissioner shall apply in a municipality unless 
        the municipality adopts an ordinance which is determined by the 
        commissioner to be more stringent than the rules of the 
        commissioner.  The rules of the commissioner or the more 
        stringent ordinance of the municipality shall be in effect 60 
        days from March 31, 1974.  The rules of the commissioner or the 
        municipality shall apply to all state agencies, special purpose 
        districts and metropolitan commissions as defined in section 
        473.121, subdivision 7 5a, which own or control land adjacent to 
        or within a shade tree disease control area in Laws 1975, 
        chapter 253. 
           Sec. 8.  Minnesota Statutes 1996, section 18B.33, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENT.] (a) A person may not apply a 
        pesticide for hire without a commercial applicator license for 
        the appropriate use categories or a structural pest control 
        license or aquatic pest control license.  
           (b) A person with a commercial applicator license may not 
        apply pesticides on or into surface waters without an aquatic 
        pest control license under section 18B.32 18B.315, except an 
        aquatic pest control license is not required for licensed 
        commercial applicators applying pesticides for the purposes of:  
           (1) pest control on cultivated wild rice; 
           (2) mosquito and black fly control operations; 
           (3) pest control on rights-of-way; 
           (4) aerial pest control operations for emergent vegetation 
        control; 
           (5) aerial application of piscicides; and 
           (6) pest control for silvicultural operations. 
           (c) A commercial applicator licensee must have a valid 
        license identification card when applying pesticides for hire 
        and must display it upon demand by an authorized representative 
        of the commissioner or a law enforcement officer.  The 
        commissioner shall prescribe the information required on the 
        license identification card. 
           Sec. 9.  Minnesota Statutes 1996, section 18E.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FEE.] (a) The response and reimbursement fee 
        consists of the surcharges and any adjustments made by the 
        commissioner in this subdivision and shall be collected by the 
        commissioner.  The amount of the response and reimbursement fee 
        shall be determined and imposed annually by the commissioner as 
        required to satisfy the requirements in subdivision 3.  The 
        commissioner shall adjust the amount of the surcharges imposed 
        in proportion to the amount of the surcharges listed in this 
        subdivision. 
           (b) The commissioner shall impose a surcharge on pesticides 
        registered under chapter 18B to be collected as a surcharge on 
        the registration application fee under section 18B.26, 
        subdivision 3, that is equal to 0.1 percent of sales of the 
        pesticide in the state and sales of pesticides for use in the 
        state during the previous calendar year, except the surcharge 
        may not be imposed on pesticides that are sanitizers or 
        disinfectants as determined by the commissioner.  No surcharge 
        is required if the surcharge amount based on percent of annual 
        gross sales is less than $10.  The registrant shall determine 
        when and which pesticides are sold or used in this state.  The 
        registrant shall secure sufficient sales information of 
        pesticides distributed into this state from distributors and 
        dealers, regardless of distributor location, to make a 
        determination.  Sales of pesticides in this state and sales of 
        pesticides for use in this state by out-of-state distributors 
        are not exempt and must be included in the registrant's annual 
        report, as required under section 18B.26, subdivision 3, 
        paragraph (c), and fees shall be paid by the registrant based 
        upon those reported sales.  Sales of pesticides in the state for 
        use outside of the state are exempt from the surcharge in this 
        paragraph if the registrant properly documents the sale location 
        and the distributors. 
           (c) The commissioner shall impose a ten cents per ton 
        surcharge on the inspection fee under section 18C.425, 
        subdivision 6, for fertilizers, soil amendments, and plant 
        amendments.  
           (d) The commissioner shall impose a surcharge on the 
        license application of persons licensed under chapters 18B and 
        18C consisting of: 
           (1) a $75 surcharge for each site where pesticides are 
        stored or distributed, to be imposed as a surcharge on pesticide 
        dealer application fees under section 18B.31, subdivision 5; 
           (2) a $75 surcharge for each site where a fertilizer, plant 
        amendment, or soil amendment is distributed, to be imposed on 
        persons licensed under sections 18C.415 and 18C.425; 
           (3) a $50 surcharge to be imposed on a structural pest 
        control applicator license application under section 18B.32, 
        subdivision 6, for business license applications only; 
           (4) a $20 surcharge to be imposed on commercial applicator 
        license application fees under section 18B.33, subdivision 7; 
           (5) a $20 surcharge to be imposed on noncommercial 
        applicator license application fees under section 18B.34, 
        subdivision 5, except a surcharge may not be imposed on a 
        noncommercial applicator that is a state agency, political 
        subdivision of the state, the federal government, or an agency 
        of the federal government; and 
           (6) a $20 surcharge to be imposed on aquatic pest control 
        licenses under section 18B.315. 
           (e) A $1,000 fee shall be imposed on each site where 
        pesticides are stored and sold for use outside of the state 
        unless:  
           (1) the distributor properly documents that it has less 
        than $2,000,000 per year in wholesale value of pesticides stored 
        and transferred through the site; or 
           (2) the registrant pays the surcharge under paragraph (b) 
        and the registration fee under section 18B.26, subdivision 3, 
        for all of the pesticides stored at the site and sold for use 
        outside of the state. 
           (f) Paragraphs (c) to (e) apply to sales, licenses issued, 
        applications received for licenses, and inspection fees imposed 
        on or after July 1, 1990. 
           Sec. 10.  [REVISOR'S INSTRUCTION; SECTIONS 25.31 TO 25.43.] 
           The revisor shall change the citation from section 25.44 to 
        section 25.43 in the following sections of Minnesota Statutes:  
        25.31; 25.32; 25.33; 25.34; 25.36; 25.37; 25.39; 25.40; 25.41; 
        25.42; and 25.43. 
           Sec. 11.  Minnesota Statutes 1996, section 25.47, 
        subdivision 2, is amended to read: 
           Subd. 2.  The commissioner of agriculture shall, on or 
        before June 15 of each year, establish the grades of hay and 
        straw subject to state inspection which shall be known as the 
        "Minnesota Grades" and hay and straw received at a public 
        warehouse shall be graded accordingly.  The grades shall not be 
        changed before June 15 of the next succeeding year.  The 
        commissioner of agriculture shall also adopt rules in accordance 
        with the administrative procedure act as it deems necessary to 
        implement this section and section 25.46.  
           Sec. 12.  [REVISOR'S INSTRUCTION; SECTIONS 27.13 TO 27.20.] 
           The revisor shall change the citation from section 27.15 to 
        section 27.14 in the following sections of Minnesota Statutes:  
        27.13; 27.14; 27.19; and 27.20. 
           Sec. 13.  Minnesota Statutes 1996, section 32.078, is 
        amended to read: 
           32.078 [SUSPENSION OR CANCELLATION.] 
           The commissioner is empowered to suspend or cancel any 
        license issued pursuant to the provisions of sections 32.071 to 
        32.077 32.076 after a hearing upon written notice containing the 
        grounds therefor, which notice shall be served personally upon 
        the licensee or the licensee's agent at least five days prior to 
        such hearing. 
           Sec. 14.  Minnesota Statutes 1996, section 32.481, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] "Cheese" as used in sections 
        32.481 to 32.485 32.484 includes all varieties of cheese, cheese 
        spreads, cheese foods, cheese compounds, or processed cheese, 
        made or manufactured in whole or in part from cow's, goat's, or 
        sheep's milk. 
           Sec. 15.  [REVIVAL OF STATUTES; SECTIONS 35.01 AND 35.73.] 
           Notwithstanding Minnesota Statutes, section 645.36, 
        Minnesota Statutes 1994, sections 35.01, subdivisions 1, 2, and 
        3; and 35.73, subdivisions 1 and 4, are revived retroactive to 
        August 1, 1996. 
           Sec. 16.  [REPEALER; SECTIONS 50.21 AND 50.22 NOTE.] 
           Laws 1995, chapter 171, sections 54 and 56, are repealed. 
           Sec. 17.  [REVISOR'S INSTRUCTION; SECTION 60A.15.] 
           The revisor shall insert the phrase "of revenue" after the 
        word "commissioner" wherever the word "commissioner" appears 
        without further designation in Minnesota Statutes, section 
        60A.15. 
           Sec. 18.  [REPEALER; SECTION 62L.08 NOTE.] 
           Laws 1995, First Special Session chapter 3, article 13, 
        section 2, is repealed. 
           Sec. 19.  [REVISOR'S INSTRUCTION; SECTIONS 65A.16 TO 
        65A.24.] 
           The revisor shall change the citation from section 65A.25 
        to section 65A.24 in the following sections of Minnesota 
        Statutes:  65A.16; 65A.17; 65A.18; 65A.19; 65A.22; 65A.23; and 
        65A.24. 
           Sec. 20.  Minnesota Statutes 1996, section 84.027, 
        subdivision 13, is amended to read: 
           Subd. 13.  [GAME AND FISH RULES.] (a) The commissioner of 
        natural resources may adopt rules under sections 97A.0451 to 
        97A.0459 and this subdivision that are authorized under: 
           (1) chapters 97A, 97B, and 97C to set open seasons and 
        areas, to close seasons and areas, to select hunters for areas, 
        to provide for tagging and registration of game, to prohibit or 
        allow taking of wild animals to protect a species, and to 
        prohibit or allow importation, transportation, or possession of 
        a wild animal; 
           (2) sections 84.093, 84.14, 84.15, and 84.152 to set 
        seasons for harvesting wild ginseng roots and wild rice and to 
        restrict or prohibit harvesting in designated areas; and 
           (3) section 84D.12 to designate prohibited exotic species, 
        regulated exotic species, unregulated exotic species, limited 
        infestations of Eurasian water milfoil, and infested waters. 
           Clause (2) does not limit or supersede the commissioner's 
        authority to establish opening dates, days, and hours of the 
        wild rice harvesting season under section 84.14, subdivision 3. 
           (b) If conditions exist that do not allow the commissioner 
        to comply with sections 97A.0451 to 97A.0459, the commissioner 
        may adopt a rule under this subdivision by submitting the rule 
        to the attorney general for review under section 97A.0455, 
        publishing a notice in the State Register and filing the rule 
        with the secretary of state and the legislative commission to 
        review administrative rules, and complying with section 
        97A.0459, and including a statement of the emergency conditions 
        and a copy of the rule in the notice.  The notice may be 
        published after it is received from the attorney general or five 
        business days after it is submitted to the attorney general, 
        whichever is earlier. 
           (c) Rules adopted under paragraph (b) are effective upon 
        publishing in the State Register and may be effective up to 
        seven days before publishing and filing under paragraph (b), if: 
           (1) the commissioner of natural resources determines that 
        an emergency exists; 
           (2) the attorney general approves the rule; and 
           (3) for a rule that affects more than three counties the 
        commissioner publishes the rule once in a legal newspaper 
        published in Minneapolis, St. Paul, and Duluth, or for a rule 
        that affects three or fewer counties the commissioner publishes 
        the rule once in a legal newspaper in each of the affected 
        counties. 
           (d) Except as provided in paragraph (e), a rule published 
        under paragraph (c), clause (3), may not be effective earlier 
        than seven days after publication. 
           (e) A rule published under paragraph (c), clause (3), may 
        be effective the day the rule is published if the commissioner 
        gives notice and holds a public hearing on the rule within 15 
        days before publication. 
           (f) The commissioner shall attempt to notify persons or 
        groups of persons affected by rules adopted under paragraphs (b) 
        and (c) by public announcements, posting, and other appropriate 
        means as determined by the commissioner. 
           (g) Notwithstanding section 97A.0458, a rule adopted under 
        this subdivision is effective for the period stated in the 
        notice but not longer than 18 months after the rule is adopted. 
           Sec. 21.  Minnesota Statutes 1996, 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 
        must be credited to the lakeshore leasing and sales account in 
        the permanent school fund and is appropriated for use to survey, 
        appraise, and pay associated selling and leasing costs of lots 
        as required in this section and Minnesota Statutes 1992, section 
        92.67, subdivision 3.  The money 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 and leasing costs 
        of lots, as required in this section and 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. 22.  [REPEALER; SECTION 92.46, SUBDIVISION 1, NOTE.] 
           Laws 1995, chapter 186, section 26, is repealed. 
           Sec. 23.  [REPEALER; SECTION 103I.235 NOTE.] 
           Laws 1991, chapter 292, article 2, section 2, is repealed. 
           Sec. 24.  Minnesota Statutes 1996, section 103I.341, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LIEN FOR SEALING COSTS.] The commissioner 
        and the board of water and soil resources have a governmental 
        services lien under section 514.67 for the costs of sealing a 
        well or boring that the commissioner or board has contracted to 
        be sealed under section 103I.315, subdivision 2; 103I.331; or 
        103I.335.  The lien attaches to the real property where the well 
        or boring is located.  The lien is perfected by filing the lien 
        with the county recorder or registrar of titles where the well 
        or boring and the property are located and serving or mailing by 
        return receipt a copy of the lien to the property owner. 
           Sec. 25.  Minnesota Statutes 1996, section 103I.535, 
        subdivision 9, is amended to read: 
           Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
        to submit all information required for renewal in subdivision 8 
        or submits the application and information after the required 
        renewal date: 
           (1) the licensee must include an additional late fee set by 
        the commissioner under section 16A.128 16A.1285; and 
           (2) the licensee may not conduct activities authorized by 
        the elevator shaft contractor's license until the renewal 
        application, renewal application fee, and late fee, and all 
        other information required in subdivision 8 are submitted. 
           Sec. 26.  [REPEALER.] 
           Minnesota Statutes 1996, section 115A.03, subdivision 16, 
        is repealed. 
           Sec. 27.  Minnesota Statutes 1996, section 115A.10, is 
        amended to read: 
           115A.10 [DUTIES OF THE OFFICE; HAZARDOUS WASTE FACILITIES; 
        ENCOURAGEMENT OF PRIVATE ENTERPRISE.] 
           The office and the director on behalf of the office shall 
        encourage the development and operation of hazardous waste 
        facilities by private enterprise to the extent practicable and 
        consistent with the purposes of sections 115A.01 to 115A.72 and 
        the office's hazardous waste management plan adopted pursuant to 
        section 115A.11.  In preparing the reports under section 115A.08 
        and the inventory of processing facility sites under section 
        115A.09, In adopting the management plan, and in its actions and 
        decisions under sections 115A.18 to 115A.30 and 115A.32 to 
        115A.39, the office and the director on behalf of the office 
        shall solicit the active participation of private waste 
        management firms and shall so conduct its activities as to 
        encourage private permit applications for facilities needed in 
        the state.  The office shall promulgate rules for accepting and 
        evaluating applications for permits for the construction and 
        operation of facilities at sites preferred by the office 
        pursuant to section 115A.09.  The rules shall include standards 
        and procedures for making determinations on the minimum 
        qualifications, including technical competence and financial 
        capability, of permit applicants. 
           Sec. 28.  Minnesota Statutes 1996, section 115A.11, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [CONTENTS.] The plan must include at least the 
        elements prescribed in this subdivision.  
           (a) The plan must estimate the types and quantities of 
        hazardous waste that will be generated in the state through the 
        year 2000.  
           (b) The plan must set out specific and quantifiable 
        objectives for reducing to the greatest feasible and prudent 
        extent the need for and use of disposal facilities located 
        within the state, through waste reduction, pretreatment, 
        retrievable storage, processing, and resource recovery.  
           (c) The plan must estimate the minimum disposal capacity 
        and capability required by generators in the state for use 
        through the year 2000.  The estimate must be based on the 
        achievement of the objectives under paragraph (b).  
           (d) The plan must describe and recommend the implementation 
        strategies required to assure availability of disposal capacity 
        for the types and quantities of waste estimated under paragraph 
        (c) and to achieve the objectives required by paragraph (b).  
        The recommendations must address at least the following:  the 
        necessary private and government actions; the types of 
        facilities and programs required; the availability and use of 
        specific facilities outside of the state; development schedules 
        for facilities, services, and rules that should be established 
        in the state; revenue-raising and financing measures; levels of 
        public and private effort and expenditure; legal and 
        institutional changes; and other similar matters.  
           (e) The plan must provide for the orderly development of 
        hazardous waste management sites and facilities to protect the 
        health and safety of rural and urban communities.  In preparing 
        the plan the office shall consider its impact upon agriculture 
        and natural resources.  
           (f) The plan must include methods and procedures that will 
        encourage the establishment of programs, services, and 
        facilities that the office recommends for development in the 
        state for the recycling, reuse, recovery, conversion, treatment, 
        destruction, transfer, storage, or disposal, including 
        retrievable storage, of hazardous waste. 
           The plan must be consistent with the estimate of need and 
        feasibility analysis prepared under section 115A.24, the 
        analysis provided in the phase I environmental impact statement 
        determined to be adequate under section 115A.25, subdivision 1a, 
        and the decisions made by the office under sections section 
        115A.28 and 115A.291.  
           The office may make the implementation of elements of the 
        plan contingent on actions of the legislature that have been 
        recommended in the draft plan. 
           Sec. 29.  Minnesota Statutes 1996, section 115A.12, is 
        amended to read: 
           115A.12 [ADVISORY COUNCILS.] 
           (a) The director shall establish a solid waste management 
        advisory council, a hazardous waste management planning council, 
        and a market development coordinating council, that are broadly 
        representative of the geographic areas and interests of the 
        state.  
           (b) The solid waste council shall have not less than nine 
        nor more than 21 members.  The membership of the solid waste 
        council shall consist of one-third citizen representatives, 
        one-third representatives from local government units, and 
        one-third representatives from private solid waste management 
        firms.  The solid waste council shall contain at least three 
        members experienced in the private recycling industry and at 
        least one member experienced in each of the following areas:  
        state and municipal finance; solid waste collection, processing, 
        and disposal; and solid waste reduction and resource recovery. 
           (c) The hazardous waste council shall have not less than 
        nine nor more than 18 members.  The membership of the hazardous 
        waste advisory council shall consist of one-third citizen 
        representatives, one-third representatives from local government 
        units, and one-third representatives of hazardous waste 
        generators and private hazardous waste management firms.  
           (d) The market development coordinating council shall have 
        not less than nine nor more than 18 members and shall consist of 
        one representative from the department of trade and economic 
        development, the department of administration, the pollution 
        control agency, Minnesota Technology, Inc., and the legislative 
        commission on waste management.  The other members shall 
        represent local government units, private recycling markets, and 
        private recycling collectors.  The market development 
        coordinating council expires June 30, 1997. 
           (e) The chairs of the advisory councils shall be appointed 
        by the director.  The director shall provide administrative and 
        staff services for the advisory councils.  The advisory councils 
        shall have such duties as are assigned by law or the director.  
        The solid waste advisory council shall make recommendations to 
        the office on its solid waste management activities.  The 
        hazardous waste advisory council shall make recommendations to 
        the office on its activities under sections 115A.08, 115A.09, 
        115A.10, 115A.11, 115A.20, 115A.21, and 115A.24.  Members of the 
        advisory councils shall serve without compensation but shall be 
        reimbursed for their reasonable expenses as determined by the 
        director.  The solid waste management advisory council and the 
        hazardous waste management planning council expire June 30, 1997.
           Sec. 30.  Minnesota Statutes 1996, section 115A.9651, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITION.] (a) Except as provided 
        in paragraphs paragraph (d) and (e), no person may distribute 
        for sale or use in this state any ink, dye, pigment, paint, or 
        fungicide manufactured after September 1, 1994, into which lead, 
        cadmium, mercury, or hexavalent chromium has been intentionally 
        introduced.  
           (b) For the purposes of this subdivision, "intentionally 
        introduce" means to deliberately use a metal listed in paragraph 
        (a) as an element during manufacture or distribution of an item 
        listed in paragraph (a).  Intentional introduction does not 
        include the incidental presence of any of the prohibited 
        elements. 
           (c) The concentration of a listed metal in an item listed 
        in paragraph (a) may not exceed 100 parts per million. 
           (d) The prohibition on the use of lead in substances 
        utilized in marking road, street, highway, and bridge pavements 
        does not take effect until July 1, 1998. 
           (e) The use of lead in substances utilized in marking road, 
        street, highway, and bridge pavements is exempt from this 
        subdivision until July 1, 1998. 
           Sec. 31.  Minnesota Statutes 1996, section 115B.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] (a) The environmental 
        response, compensation, and compliance account is in the 
        environmental fund in the state treasury and may be spent only 
        for the purposes provided in subdivision 2.  
           (b) The commissioner of finance shall administer a response 
        account for the agency and the commissioner of agriculture to 
        take removal, response, and other actions authorized under 
        subdivision 2, clauses (1) to (4) and (11) (10) to (13) (12).  
        The commissioner of finance shall transfer money from the 
        response account to the agency and the commissioner of 
        agriculture to take actions required under subdivision 2, 
        clauses (1) to (4) and (11) (10) to (13) (12).  
           (c) The commissioner of finance shall administer the 
        account in a manner that allows the commissioner of agriculture 
        and the agency to utilize the money in the account to implement 
        their removal and remedial action duties as effectively as 
        possible. 
           (d) Amounts appropriated to the commissioner of finance 
        under this subdivision shall not be included in the department 
        of finance budget but shall be included in the pollution control 
        agency and department of agriculture budgets. 
           (e) All money recovered by the state under section 115B.04 
        or any other law for injury to, destruction of, or loss of 
        natural resources resulting from the release of a hazardous 
        substance, or a pollutant or contaminant, must be credited to 
        the environmental response, compensation, and compliance account 
        in the environmental fund and is appropriated to the 
        commissioner of natural resources for purposes of subdivision 2, 
        clause (6), consistent with any applicable term of judgments, 
        consent decrees, consent orders, or other administrative actions 
        requiring payments to the state for such purposes.  Before 
        making an expenditure of money appropriated under this 
        paragraph, the commissioner of natural resources shall provide 
        written notice of the proposed expenditure to the chairs of the 
        senate committee on finance, the house of representatives 
        committee on ways and means, the finance division of the senate 
        committee on environment and natural resources, and the house of 
        representatives committee on environment and natural resources 
        finance. 
           Sec. 32.  Minnesota Statutes 1996, section 115B.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURPOSES FOR WHICH MONEY MAY BE SPENT.] Subject 
        to appropriation by the legislature the money in the account may 
        be spent for any of the following purposes:  
           (1) preparation by the agency and the commissioner of 
        agriculture for taking removal or remedial action under section 
        115B.17, or under chapter 18D, including investigation, 
        monitoring and testing activities, enforcement and compliance 
        efforts relating to the release of hazardous substances, 
        pollutants or contaminants under section 115B.17 or 115B.18, or 
        chapter 18D; 
           (2) removal and remedial actions taken or authorized by the 
        agency or the commissioner of the pollution control agency under 
        section 115B.17, or taken or authorized by the commissioner of 
        agriculture under chapter 18D including related enforcement and 
        compliance efforts under section 115B.17 or 115B.18, or chapter 
        18D, and payment of the state share of the cost of remedial 
        action which may be carried out under a cooperative agreement 
        with the federal government pursuant to the Federal Superfund 
        Act, under United States Code, title 42, section 9604(c)(3) for 
        actions related to facilities other than commercial hazardous 
        waste facilities located under the siting authority of chapter 
        115A; 
           (3) reimbursement to any private person for expenditures 
        made before July 1, 1983, to provide alternative water supplies 
        deemed necessary by the agency or the commissioner of 
        agriculture and the department of health to protect the public 
        health from contamination resulting from the release of a 
        hazardous substance; 
           (4) removal and remedial actions taken or authorized by the 
        agency or the commissioner of agriculture or the pollution 
        control agency under section 115B.17, or chapter 18D, including 
        related enforcement and compliance efforts under section 115B.17 
        or 115B.18, or chapter 18D, and payment of the state share of 
        the cost of remedial action which may be carried out under a 
        cooperative agreement with the federal government pursuant to 
        the Federal Superfund Act, under United States Code, title 42, 
        section 9604(c)(3) for actions related to commercial hazardous 
        waste facilities located under the siting authority of chapter 
        115A; 
           (5) compensation as provided by law, after submission by 
        the office of environmental assistance of the report required 
        under section 115A.08, subdivision 5, to mitigate any adverse 
        impact of the location of commercial hazardous waste processing 
        or disposal facilities located pursuant to the siting authority 
        of chapter 115A; 
           (6) planning and implementation by the commissioner of 
        natural resources of the rehabilitation, restoration, or 
        acquisition of natural resources to remedy injuries or losses to 
        natural resources resulting from the release of a hazardous 
        substance; 
           (7) (6) inspection, monitoring, and compliance efforts by 
        the agency, or by political subdivisions with agency approval, 
        of commercial hazardous waste facilities located under the 
        siting authority of chapter 115A; 
           (8) (7) grants by the agency or the office of environmental 
        assistance to demonstrate alternatives to land disposal of 
        hazardous waste including reduction, separation, pretreatment, 
        processing and resource recovery, for education of persons 
        involved in regulating and handling hazardous waste; 
           (9) (8) intervention and environmental mediation by the 
        legislative commission on waste management under chapter 115A; 
        and 
           (10) (9) grants by the agency to study the extent of 
        contamination and feasibility of cleanup of hazardous substances 
        and pollutants or contaminants in major waterways of the state; 
           (11) (10) acquisition of a property interest under section 
        115B.17, subdivision 15; 
           (12) (11) reimbursement, in an amount to be determined by 
        the agency in each case, to a political subdivision that is not 
        a responsible person under section 115B.03, for reasonable and 
        necessary expenditures resulting from an emergency caused by a 
        release or threatened release of a hazardous substance, 
        pollutant, or contaminant; and 
           (13) (12) reimbursement to a political subdivision for 
        expenditures in excess of the liability limit under section 
        115B.04, subdivision 4. 
           Sec. 33.  Minnesota Statutes 1996, section 115B.39, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] (a) In addition to the definitions 
        in this subdivision, the definitions in sections 115A.03 and 
        115B.02 apply to sections 115B.39 to 115B.46 115B.445, except as 
        specifically modified in this subdivision. 
           (b) "Cleanup order" means a consent order between 
        responsible persons and the agency or an order issued by the 
        United States Environmental Protection Agency under section 106 
        of the federal Superfund Act. 
           (c) "Closure" means actions to prevent or minimize the 
        threat to public health and the environment posed by a mixed 
        municipal solid waste disposal facility that has stopped 
        accepting waste by controlling the sources of releases or 
        threatened releases at the facility.  "Closure" includes 
        removing contaminated equipment and liners; applying final 
        cover; grading and seeding final cover; installing wells, 
        borings, and other monitoring devices; constructing groundwater 
        and surface water diversion structures; and installing gas 
        control systems and site security systems, as necessary.  The 
        commissioner may authorize use of final cover that includes 
        processed materials that meet the requirements in Code of 
        Federal Regulations, title 40, section 503.32, paragraph (a). 
           (d) "Contingency action" means organized, planned, or 
        coordinated courses of action to be followed in case of fire, 
        explosion, or release of solid waste, waste by-products, or 
        leachate that could threaten human health or the environment. 
           (e) "Corrective action" means steps taken to repair 
        facility structures including liners, monitoring wells, 
        separation equipment, covers, and aeration devices and to bring 
        the facility into compliance with design, construction, 
        groundwater, surface water, and air emission standards. 
           (f) "Decomposition gases" means gases produced by chemical 
        or microbial activity during the decomposition of solid waste. 
           (g) "Environmental response action" means response action 
        at a qualified facility, including corrective action, closure, 
        postclosure care; contingency action; environmental studies, 
        including remedial investigations and feasibility studies; 
        engineering, including remedial design; removal; remedial 
        action; site construction; and other similar cleanup-related 
        activities.  
           (h) "Environmental response costs" means: 
           (1) costs of environmental response action, not including 
        legal or administrative expenses; and 
           (2) costs required to be paid to the federal government 
        under section 107(a) of the federal Superfund Act, as amended. 
           (i) "Postclosure" or "postclosure care" means actions taken 
        for the care, maintenance, and monitoring of closure actions at 
        a mixed municipal solid waste disposal facility. 
           (j) "Qualified facility" means a mixed municipal solid 
        waste disposal facility, including adjacent property used for 
        solid waste disposal, that: 
           (1) is or was permitted by the agency; 
           (2) stopped accepting solid waste, except demolition 
        debris, for disposal by April 9, 1994; and 
           (3) stopped accepting demolition debris for disposal by 
        June 1, 1994, except that demolition debris may be accepted 
        until May 1, 1995, at a permitted area where disposal of 
        demolition debris is allowed, if the area where the demolition 
        debris is deposited is at least 50 feet from the fill boundary 
        of the area where mixed municipal solid waste was deposited. 
           Sec. 34.  Minnesota Statutes 1996, section 115B.412, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ENVIRONMENTAL LIEN.] An environmental lien for 
        environmental response costs incurred, including reimbursements 
        made under section 115B.43, by the commissioner under sections 
        115B.39 to 115B.46 115B.445 attaches in the same manner as a 
        lien under sections 514.671 to 514.676 to all the real property 
        described in the original and any revised permits for a 
        qualified facility and any adjacent property owned by the 
        facility owner or operator from the date the first assessment, 
        closure, postclosure care, or response activities related to the 
        facility are undertaken by the commissioner.  For the purposes 
        of filing an environmental lien under this subdivision, the term 
        "cleanup action" as used in sections 514.671 to 514.676 includes 
        all of the costs incurred by the commissioner to assess, close, 
        maintain, monitor, and respond to releases at qualified 
        facilities under sections 115B.39 to 115B.46 115B.445.  
        Notwithstanding section 514.672, subdivision 4, a lien under 
        this paragraph takes precedence over all other liens on the 
        property regardless of when the other liens were or are 
        perfected.  For the purpose of this subdivision, "owner or 
        operator" has the meaning given it in section 115B.41, 
        subdivision 4. 
           Sec. 35.  Minnesota Statutes 1996, section 115B.42, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXPENDITURES.] (a) Money in the fund may be 
        spent by the commissioner to: 
           (1) inspect permitted mixed municipal solid waste disposal 
        facilities to: 
           (i) evaluate the adequacy of final cover, slopes, 
        vegetation, and erosion control; 
           (ii) determine the presence and concentration of hazardous 
        substances, pollutants or contaminants, and decomposition gases; 
        and 
           (iii) determine the boundaries of fill areas; 
           (2) monitor and take, or reimburse others for, 
        environmental response actions, including emergency response 
        actions, at qualified facilities; 
           (3) acquire and dispose of property under section 115B.412, 
        subdivision 3; 
           (4) recover costs under sections section 115B.39 and 
        115B.46; 
           (5) administer, including providing staff and 
        administrative support for, sections 115B.39 to 115B.46 
        115B.445; 
           (6) enforce sections 115B.39 to 115B.46 115B.445; 
           (7) subject to appropriation, administer the agency's 
        groundwater and solid waste management programs; 
           (8) reimburse persons under section 115B.43; and 
           (9) reimburse mediation expenses up to a total of $250,000 
        annually or defense costs up to a total of $250,000 annually for 
        third-party claims for response costs under state or federal law 
        as provided in section 115B.414. 
           Sec. 36.  Minnesota Statutes 1996, section 116.07, 
        subdivision 4b, is amended to read: 
           Subd. 4b.  [PERMITS; HAZARDOUS WASTE FACILITIES.] (a) The 
        agency shall provide to the office of environmental assistance 
        established in section 115A.055, copies of each permit 
        application for a hazardous waste facility immediately upon its 
        submittal to the agency.  The agency shall request 
        recommendations on each permit application from the office and 
        shall consult with the office on the agency's intended 
        disposition of the recommendations.  Except as otherwise 
        provided in sections 115A.18 to 115A.30, the agency shall 
        commence any environmental review required under chapter 116D 
        within 120 days of its acceptance of a completed permit 
        application.  The agency shall respond to a permit application 
        for a hazardous waste facility within 120 days following a 
        decision not to prepare environmental documents or following the 
        acceptance of a negative declaration notice or an environmental 
        impact statement.  Except as otherwise provided in sections 
        115A.18 to 115A.30, within 60 days following the submission of a 
        final permit application for a hazardous waste facility, unless 
        a time extension is agreed to by the applicant, the agency shall 
        issue or deny all permits needed for the construction of the 
        proposed facility.  
           (b) The agency shall promulgate rules pursuant to chapter 
        14 for all hazardous waste facilities.  After the report of the 
        office of environmental assistance required by section 115A.08, 
        subdivision 5a, has been submitted to the legislature, the 
        agency shall review its rules for hazardous waste facilities and 
        shall consider whether any of the rules should be modified or if 
        new rules should be adopted based on the recommendations in the 
        report.  The rules shall require:  
           (1) contingency plans for all hazardous waste facilities 
        which provide for effective containment and control in any 
        emergency condition; 
           (2) the establishment of a mechanism to assure that money 
        to cover the costs of closure and postclosure monitoring and 
        maintenance of hazardous waste facilities will be available; 
           (3) the maintenance of liability insurance by the owner or 
        operator of hazardous waste facilities during the operating life 
        of the facility. 
           Sec. 37.  Minnesota Statutes 1996, section 116.07, 
        subdivision 10, is amended to read: 
           Subd. 10.  [SOLID WASTE GENERATOR ASSESSMENTS.] (a) For the 
        purposes of this subdivision: 
           (1) "assessed waste" means mixed municipal solid waste as 
        defined in section 115A.03, subdivision 21, infectious waste as 
        defined in section 116.76, subdivision 12, pathological waste as 
        defined in section 116.76, subdivision 14, industrial waste as 
        defined in section 115A.03, subdivision 13a, and construction 
        debris as defined in section 115A.03, subdivision 7; provided 
        that all types of assessed waste listed in this clause do not 
        include: 
           (i) materials that are separated for recycling by the 
        generator and that are collected separately from other waste and 
        delivered to a waste facility for the purpose of recycling and 
        recycled; 
           (ii) materials that are separated for recycling by the 
        generator, collected and delivered to a waste facility that 
        recycles at least 85 percent of its waste, and are collected 
        with mixed municipal solid waste that is segregated in leakproof 
        bags, provided that the mixed municipal solid waste does not 
        exceed five percent of the total weight of the materials 
        delivered to the facility and is ultimately delivered to a 
        facility designated under sections 115A.80 to 115A.893; and 
           (iii) waste generated outside of Minnesota; 
           (2) "noncompacted cubic yard" means a loose cubic yard of 
        assessed waste; 
           (3) "nonresidential customer" means: 
           (i) an owner or operator of a business, including a home 
        operated business, industry, church, nursing home, nonprofit 
        organization, school, or any other commercial or institutional 
        enterprise; 
           (ii) an owner of a building or site containing multiple 
        residences, including a townhome or manufactured home park, 
        where no resident has separate trash pickup, and no resident is 
        separately assessed for such service; and 
           (iii) any other generator of assessed waste that is not a 
        residential customer as defined in clause (6); 
           (4) "periodic waste collection" means each time a waste 
        container is emptied by the person that collects the assessed 
        waste; 
           (5) "person that collects assessed waste" means each person 
        that is required to pay sales tax on solid waste collection 
        services under section 297A.45, or would pay sales tax under 
        that section if the assessed waste was mixed municipal solid 
        waste; and 
           (6) "residential customer" means: 
           (i) a detached single family residence that generates only 
        household mixed municipal solid waste; and 
           (ii) a person residing in a building or at a site 
        containing multiple residences, including a townhome or a 
        manufactured home park, where each resident either (A) is 
        separately assessed for waste collection or (B) has separate 
        waste collection for each resident, even if the resident pays to 
        the owner or an association a monthly maintenance fee which 
        includes the expense of waste collection, and the owner or 
        association pays the waste collector for waste collection in one 
        lump sum. 
           (b) A person that collects assessed waste shall collect and 
        remit to the commissioner of revenue a solid waste generator 
        assessment from each of the person's customers as provided in 
        paragraphs (c) and (d).  A waste management facility that 
        accepts assessed waste shall collect and remit to the 
        commissioner of revenue the solid waste assessment as provided 
        in paragraph (e). 
           (c) Except as provided in paragraph (f), the amount of the 
        assessment for each residential customer is $2 per year.  Each 
        person that collects assessed waste shall collect the assessment 
        annually from each residential customer that is receiving mixed 
        municipal solid waste collection service on July 1 of each year 
        and shall remit the amount actually collected along with the 
        person's first remittance of the sales tax on solid waste 
        collection services, described in section 297A.45, made after 
        October 1 of each year.  For buildings or sites that contain 
        multiple residences that are not separately billed for 
        collection services, the person who collects assessed waste 
        shall collect the assessment for all the residences from the 
        person who is billed for the collection service.  Any amount of 
        the assessment that is received by the person that collects 
        assessed waste after October 1 of each year must be remitted 
        along with the person's next remittance of sales tax after 
        receipt of the assessment. 
           (d)(1) Except as provided in clause (2), the amount of the 
        assessment for each nonresidential customer is 60 cents per 
        noncompacted cubic yard of periodic waste collection capacity 
        purchased by the customer, based on the size of the container 
        for the assessed waste.  For a residential customer that 
        generates assessed waste that is not mixed municipal solid 
        waste, the amount of the assessment is 60 cents per noncompacted 
        cubic yard of collection capacity purchased for the waste that 
        is not mixed municipal solid waste, based on the size of the 
        container for the waste.  If the capacity purchased is for 
        compacted cubic yards of mixed municipal solid waste, the 
        noncompacted capacity purchased is based on the compaction ratio 
        of 3:1.  The commissioner of revenue, after consultation with 
        the commissioner of the pollution control agency, shall 
        determine, and may publish by notice, compaction rates for other 
        types of waste where they exist and conversion schedules for 
        waste that is managed by measurements other than cubic yards.  
        Each person that collects assessed waste shall collect the 
        assessment from each nonresidential customer as part of each 
        statement for payment of waste collection charges and shall 
        remit the amount actually collected along with the next 
        remittance of sales tax after receipt of the assessment. 
           (2) The assessment for nonresidential customers for the 
        mixed municipal solid waste that is collected with 
        source-separated recyclable materials as described in paragraph 
        (a), clause (1), item (ii), is three-tenths of a cent per 
        gallon.  The customer must pay by purchasing specific collection 
        bags or stickers that include the cost of the collection service 
        and assessment. 
           (e) A person who transports assessed waste generated by 
        that person or by another person without compensation shall pay 
        an assessment of 60 cents per noncompacted cubic yard or the 
        equivalent to the operator of the waste management facility to 
        which the waste is delivered.  The operator shall remit the 
        assessments actually collected under this paragraph to the 
        commissioner of revenue.  This subdivision does not apply to a 
        person who transports industrial waste generated by that person 
        to a facility owned and operated by that person. 
           (f) The amount of the assessment for each residential 
        customer that is subject to a mixed municipal solid waste 
        collection service for which the customer pays, based on the 
        volume of waste collected, by purchasing specific collection 
        bags or stickers from the waste collector, municipality, or 
        other vendor is either: 
           (1) determined by a method developed by the waste collector 
        or municipality and approved by the commissioner of revenue, 
        which yields the equivalent of approximately a $2 annual 
        assessment per household; or 
           (2) three cents per each 35 gallon unit or less.  If the 
        per unit fee method under this clause is used, it is the 
        responsibility of the waste collector or the municipality who is 
        selling the bags or stickers to remit the amount of the 
        assessment to the department of revenue, according to a payment 
        schedule provided by the commissioner of revenue.  The 
        collection service and assessment under this clause shall be 
        included in the price of the bag or sticker.  
           (g) The commissioner of revenue shall redesign sales tax 
        forms for persons that collect assessed waste to accommodate 
        payment of the assessment.  The amounts remitted under this 
        subdivision must be deposited in the state treasury and credited 
        to the solid waste fund established in section 115B.42. 
           (h) For persons that collect assessed waste and operators 
        of waste management facilities who are required to collect the 
        solid waste generator assessments under this subdivision, and 
        persons who are required to remit the assessment under paragraph 
        (f), and who do not collect and remit the sales tax on solid 
        waste collection services under section 297A.45, the 
        commissioner of revenue shall determine when and in what manner 
        the persons and operators must remit the assessment amounts 
        actually collected. 
           (i) For the purposes of this subdivision, the requirement 
        to "collect" the solid waste generator assessment under 
        paragraph (b) means that the person to whom the requirement 
        applies shall: 
           (i) include the amount of the assessment in the appropriate 
        statement of charges for waste collection services and in any 
        action to enforce payment on delinquent accounts; 
           (ii) accurately account for assessments received; 
           (iii) indicate to generators that payment of the assessment 
        by the waste generator is required by law and inform generators, 
        using information supplied by the commissioner of the agency, of 
        the purposes for which revenue from the assessment will be 
        spent; and 
           (iv) cooperate fully with the commissioner of revenue to 
        identify generators of assessed waste who fail to remit payment 
        of the assessment. 
           (j) The audit, penalty, enforcement, and administrative 
        provisions applicable to taxes imposed under chapter 297A apply 
        to the assessments imposed under this subdivision. 
           (k) If less than $25,000,000 is projected to be available 
        for new encumbrances in any fiscal year after fiscal year 1996 
        from all existing dedicated revenue sources for landfill cleanup 
        and reimbursement costs under sections 115B.39 to 115B.46 
        115B.445, by April 1 before the next fiscal year in which the 
        shortfall is projected the commissioner of the agency shall 
        certify to the commissioner of revenue the amount of the 
        shortfall.  To provide for the shortfall, the commissioner of 
        revenue shall increase the assessment under paragraphs (d) and 
        (e) by an amount sufficient to generate revenue equal to the 
        amount of the shortfall effective the following July 1 and shall 
        provide notice of the increased assessment by May 1 following 
        certification to persons who are required to collect and remit 
        the solid waste generator assessments under this subdivision. 
           Sec. 38.  Minnesota Statutes 1996, section 116C.91, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] As used in sections 116C.91 to 
        116C.98 116C.97, the terms defined in this section have the 
        meanings given them. 
           Sec. 39.  Minnesota Statutes 1996, section 116J.75, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPOINTMENT OF DIRECTOR.] The head of the 
        bureau shall be the director of business licenses.  The director 
        shall be appointed by the commissioner in accordance with 
        section 216C.23 116J.01, and shall be in the classified service. 
           Sec. 40.  [REPEALER; SECTION 116J.975.] 
           Minnesota Statutes 1996, section 116J.975, is repealed. 
           Sec. 41.  [REPEALER; SECTION 118.01, SUBDIVISION 1, NOTE.] 
           Laws 1996, chapter 414, article 1, section 30, is repealed. 
           Sec. 42.  Minnesota Statutes 1996, section 119A.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DEPARTMENT OF PUBLIC SAFETY.] The powers and 
        duties with respect to the following program is transferred to 
        the department of children, families, and learning under section 
        15.039:  drug policy and violence prevention and the community 
        advisory violence prevention councils under sections 119A.25 to 
        119A.35 119A.33 and 119A.36 119A.34. 
           Sec. 43.  Minnesota Statutes 1996, section 120.062, 
        subdivision 12, is amended to read: 
           Subd. 12.  [GENERAL EDUCATION AID.] Adjustments to general 
        education aid, capital expenditure facilities aid, and equipment 
        aid for the resident and nonresident districts shall be made 
        according to sections section 124A.036, subdivision 5, and 
        124.245, subdivision 6, respectively. 
           Sec. 44.  Minnesota Statutes 1996, section 120.075, 
        subdivision 5, is amended to read: 
           Subd. 5.  General education aid, capital expenditure 
        facilities aid, capital expenditure equipment aid, and 
        transportation aid attributable to pupils covered by programs 
        under this section must be paid according to sections 124A.036, 
        subdivision 5, 124.245, subdivision 6, and 124.225, subdivision 
        8l. 
           Sec. 45.  Minnesota Statutes 1996, section 120.0751, 
        subdivision 6, is amended to read: 
           Subd. 6.  [AID.] General education aid, capital expenditure 
        facilities aid, capital expenditure equipment aid, and 
        transportation aid for pupils covered by programs under this 
        section must be paid according to sections 124A.036, subdivision 
        5, 124.245, subdivision 6, and 124.225, subdivision 8l. 
           Sec. 46.  Minnesota Statutes 1996, section 120.0752, 
        subdivision 4, is amended to read: 
           Subd. 4.  General education aid, capital expenditure 
        facilities aid, capital expenditure equipment aid, and 
        transportation aid for pupils covered by programs under this 
        section must be paid according to sections 124A.036, subdivision 
        5, 124.245, subdivision 6, and 124.225, subdivision 8l. 
           Sec. 47.  Minnesota Statutes 1996, section 121.15, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONSULTATION.] A school district shall 
        consult with the commissioner of children, families, and 
        learning before developing any plans and specifications to 
        construct, remodel, or improve the building or site of an 
        educational facility for which the estimated cost exceeds 
        $100,000.  This consultation shall occur before a referendum for 
        bonds, solicitation for bids, or use of capital expenditure 
        facilities revenue according to section 124.243 124A.22, 
        subdivision 6 11, clause (2).  The commissioner may require the 
        district to participate in a management assistance plan before 
        conducting a review and comment on the project. 
           Sec. 48.  Minnesota Statutes 1996, section 121.912, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LIMITATIONS.] Except as provided in this 
        subdivision, sections 121.9121, 123.36, 124.243, 475.61, and 
        475.65, a school district may not permanently transfer money 
        from (1) an operating fund to a nonoperating fund; (2) a 
        nonoperating fund to another nonoperating fund; or (3) a 
        nonoperating fund to an operating fund.  Permanent transfers may 
        be made from any fund to any other fund to correct for prior 
        fiscal years' errors discovered after the books have been closed 
        for that year.  Permanent transfers may be made from the general 
        fund to any other operating funds according to section 123.7045 
        or if the resources of the other fund are not adequate to 
        finance approved expenditures from that other fund.  Permanent 
        transfers may also be made from the general fund to eliminate 
        deficits in another fund when that other fund is being 
        discontinued.  When a district discontinues operation of a 
        district-owned bus fleet or a substantial portion of a fleet, 
        the balance shall cancel to the district's general fund. 
           Sec. 49.  Minnesota Statutes 1996, section 124.155, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
        subdivision 1 shall be used to adjust the following state aids 
        and credits in the order listed: 
           (1) general education aid authorized in sections section 
        124A.23 and 124B.20; 
           (2) secondary vocational aid authorized in section 124.573; 
           (3) special education aid authorized in sections 
        124.32, and 124.3201, and 124.3202; 
           (4) secondary vocational aid for children with a disability 
        authorized in section 124.574; 
           (5) aid for pupils of limited English proficiency 
        authorized in section 124.273; 
           (6) transportation aid authorized in section 124.225; 
           (7) community education programs aid authorized in section 
        124.2713; 
           (8) adult education aid authorized in section 124.26; 
           (9) early childhood family education aid authorized in 
        section 124.2711; 
           (10) capital expenditure aid authorized in sections 
        124.243, 124.244, and section 124.83; 
           (11) school district cooperation aid authorized in section 
        124.2727; 
           (12) assurance of mastery aid according to section 124.311; 
           (13) homestead and agricultural credit aid, disparity 
        credit and aid, and changes to credits for prior year 
        adjustments according to section 273.1398, subdivisions 2, 3, 4, 
        and 7; 
           (14) attached machinery aid authorized in section 273.138, 
        subdivision 3; 
           (15) alternative delivery aid authorized in section 
        124.322; 
           (16) special education equalization aid authorized in 
        section 124.321; 
           (17) special education excess cost aid authorized in 
        section 124.323; 
           (18) learning readiness aid authorized in section 124.2615; 
        and 
           (19) cooperation-combination aid authorized in section 
        124.2725. 
           (b) The commissioner of children, families, and learning 
        shall schedule the timing of the adjustments to state aids and 
        credits specified in subdivision 1, as close to the end of the 
        fiscal year as possible. 
           Sec. 50.  [REPEALER; SECTION 124.2442.] 
           Minnesota Statutes 1996, section 124.2442, is repealed. 
           Sec. 51.  [REPEALER; SECTION 124.245.] 
           Minnesota Statutes 1996, section 124.245, is repealed. 
           Sec. 52.  Minnesota Statutes 1996, section 124.248, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SPECIAL EDUCATION AND LIMITED ENGLISH 
        PROFICIENCY AID.] Special education aid shall be paid to a 
        charter school according to sections section 124.3201 and 
        124.3202, as though it were a school district.  The charter 
        school may charge tuition to the district of residence as 
        provided in section 120.17, subdivision 4.  Limited English 
        proficiency programs aid shall be paid to a charter school 
        according to section 124.273 as though it were a school 
        district.  The charter school shall allocate its special 
        education levy equalization revenue to the resident districts of 
        the pupils attending the charter school.  The districts of 
        residence shall levy as though they were participating in a 
        cooperative, as provided in section 124.321, subdivision 3. 
           Sec. 53.  Minnesota Statutes 1996, section 124.2725, 
        subdivision 11, is amended to read: 
           Subd. 11.  [USE OF REVENUE.] Revenue under this section 
        shall be used for expenses of cooperating and combining school 
        districts, including, but not limited to: 
           (1) secondary course offerings in communications, 
        mathematics, science, social studies, foreign languages, 
        physical education, health, and career education if the courses 
        have specific learner outcomes; 
           (2) participation by teachers in determining the learner 
        outcomes; 
           (3) staff in-service related to cooperation and 
        combination; 
           (4) any of the purposes set forth in sections 124.243 
        section 124A.22, subdivision 6 11, clauses (3), 
        (4), and (15), and 124.244, subdivision 4, clauses (2), (3), 
        (4), (5), and (6) (18), (19), (20), (21), and (22), if the 
        purposes are related to courses offered cooperatively; and 
           (5) incentives for superintendents, principals, teachers, 
        and other licensed and nonlicensed employees, such as early 
        retirement, severance pay, and health insurance benefits. 
           Sec. 54.  Minnesota Statutes 1996, section 124.3201, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section and sections 124.3202 and section 124.321, the 
        definitions in this subdivision apply. 
           (a) "Base year" for fiscal year 1996 and fiscal year 1997 
        means the 1994 summer program and the 1994-1995 school year.  
        Base year for later fiscal years means the second fiscal year 
        preceding the fiscal year for which aid will be paid. 
           (b) "Basic revenue" has the meaning given it in section 
        124A.22, subdivision 2.  For the purposes of computing basic 
        revenue pursuant to this section, each child with a disability 
        shall be counted as prescribed in section 124.17, subdivision 1. 
           (c) "Essential personnel" means teachers, related services, 
        and support services staff providing direct services to students.
           (d) "Average daily membership" has the meaning given it in 
        section 124.17. 
           (e) "Program growth factor" means 1.00 for fiscal year 1998 
        and later. 
           (f) "Aid percentage factor" means 60 percent for fiscal 
        year 1996, 70 percent for fiscal year 1997, 80 percent for 
        fiscal year 1998, 90 percent for fiscal year 1999, and 100 
        percent for fiscal years 2000 and later. 
           (g) "Levy percentage factor" means 100 minus the aid 
        percentage factor for that year. 
           Sec. 55.  Minnesota Statutes 1996, section 124.3201, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [SPECIAL EDUCATION COURT PLACEMENT REVENUE.] For 
        fiscal year 1996 and later, a district's special education court 
        placement revenue is equal to 50 percent of the difference 
        between expenditures for teachers' salaries, contracted 
        services, supplies, and equipment eligible for revenues under 
        sections section 124.3201 and 124.3202, in the base year and 
        actual expenditures for pupils with disabilities who receive 
        services pursuant to a court order. 
           Sec. 56.  [REPEALER; SECTION 124.3202.] 
           Minnesota Statutes 1996, section 124.3202, is repealed. 
           Sec. 57.  Minnesota Statutes 1996, section 124.321, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
        years 1996 and later, special education levy equalization 
        revenue for a school district, excluding an intermediate school 
        district, equals the sum of the following amounts: 
           (1) the levy percentage factor for that year times the 
        district's special education revenue under section 124.3201; 
        plus 
           (2) the levy percentage factor for that year times the 
        district's special education summer program revenue under 
        section 124.3202; plus 
           (3) the levy percentage factor for that year times the 
        district's special education excess cost revenue under section 
        124.323; plus 
           (4) (3) the levy percentage factor for that year times the 
        district's secondary vocational education for children with a 
        disability revenue under section 124.574; plus 
           (5) (4) the levy percentage factor for that year times the 
        district's limited English proficiency programs revenue under 
        section 124.273. 
           Sec. 58.  Minnesota Statutes 1996, section 124.321, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REVENUE ALLOCATION FROM STATE ACADEMIES.] (a) 
        For purposes of this section, the Minnesota state academy for 
        the deaf or the Minnesota state academy for the blind each year 
        shall allocate an amount equal to the levy percentage factor for 
        that year times their special education revenue under section 
        124.3201 and their special education summer program revenue 
        under section 124.3202 for the year to each school district that 
        assigns a child with an individual education plan requiring an 
        instructional aide to attend either academy.  The school 
        districts that assign a child who requires an instructional aide 
        may make a levy in the amount of the costs allocated to them by 
        either academy. 
           (b) When the Minnesota state academy for the deaf or the 
        Minnesota state academy for the blind allocates revenue among 
        school districts that assign a child who requires an 
        instructional aide, for purposes of the districts making a levy 
        under this subdivision, the academy shall provide information to 
        the department of children, families, and learning on the amount 
        of revenue it allocated to the school districts that assign a 
        child who requires an instructional aide. 
           Sec. 59.  Minnesota Statutes 1996, section 124.322, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [BASE REVENUE ADJUSTMENT.] For the third fiscal 
        year after approval of a district's application, and thereafter, 
        the special education base revenue under section 124.3201, 
        subdivision 1, and the summer program base revenue under section 
        124.3202, subdivision 1, shall be computed based on activities 
        defined as reimbursable under state board rules for special 
        education and nonspecial education students, and additional 
        activities as detailed and approved by the commissioner of 
        children, families, and learning. 
           Sec. 60.  Minnesota Statutes 1996, section 124.322, 
        subdivision 5, is amended to read: 
           Subd. 5.  [USE OF REVENUE.] Revenue under sections section 
        124.3201 and 124.3202 shall be used to implement the approved 
        program. 
           Sec. 61.  Minnesota Statutes 1996, section 124.323, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] In this section, the 
        definitions in this subdivision apply. 
           (a) "Unreimbursed special education cost" means the sum of 
        the following: 
           (1) expenditures for teachers' salaries, contracted 
        services, supplies, and equipment eligible for revenue under 
        sections section 124.3201 and 124.3202; plus 
           (2) expenditures for tuition bills received under section 
        120.17 for services eligible for revenue under sections 
        124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
           (3) revenue for teachers' salaries, contracted services, 
        supplies, and equipment under sections 124.3201 and 124.3202; 
        minus 
           (4) tuition receipts under section 120.17 for services 
        eligible for revenue under sections 124.3201, subdivision 2, and 
        124.3202, subdivision 1. 
           (b) "General revenue," for fiscal year 1996, means the sum 
        of the general education revenue according to section 124A.22, 
        subdivision 1, as adjusted according to section 124A.036, 
        subdivision 5, plus the total referendum revenue according to 
        section 124A.03, subdivision 1e.  For fiscal years 1997 and 
        later, "general revenue" means the sum of the general education 
        revenue according to section 124A.22, subdivision 1, as adjusted 
        according to section 124A.036, subdivision 5, plus the total 
        referendum revenue minus transportation sparsity revenue minus 
        total operating capital revenue. 
           Sec. 62.  Minnesota Statutes 1996, section 124.574, 
        subdivision 7, is amended to read: 
           Subd. 7.  A district shall not receive aid pursuant to 
        section 124.3201, 124.3202, 124.321, or 124.573 for salaries, 
        supplies, travel or equipment for which the district receives 
        aid pursuant to this section. 
           Sec. 63.  Minnesota Statutes 1996, section 124.91, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TO LEASE BUILDING OR LAND.] When a 
        district finds it economically advantageous to rent or lease a 
        building or land for any instructional purposes or for school 
        storage or furniture repair, and it determines that the capital 
        expenditure facilities revenues authorized under sections 
        124.243 and section 124A.22, subdivision 10, are insufficient 
        for this purpose, it may apply to the commissioner for 
        permission to make an additional capital expenditure levy for 
        this purpose.  An application for permission to levy under this 
        subdivision must contain financial justification for the 
        proposed levy, the terms and conditions of the proposed lease, 
        and a description of the space to be leased and its proposed 
        use.  The criteria for approval of applications to levy under 
        this subdivision must include:  the reasonableness of the price, 
        the appropriateness of the space to the proposed activity, the 
        feasibility of transporting pupils to the leased building or 
        land, conformity of the lease to the laws and rules of the state 
        of Minnesota, and the appropriateness of the proposed lease to 
        the space needs and the financial condition of the district.  
        The commissioner must not authorize a levy under this 
        subdivision in an amount greater than the cost to the district 
        of renting or leasing a building or land for approved purposes.  
        The proceeds of this levy must not be used for custodial or 
        other maintenance services.  A district may not levy under this 
        subdivision for the purpose of leasing or renting a 
        district-owned building to itself. 
           Sec. 64.  Minnesota Statutes 1996, section 124.918, 
        subdivision 8, is amended to read: 
           Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
        Reductions in levies pursuant to section 124.918, subdivision 1, 
        and section 273.138, shall be made prior to the reductions in 
        clause (2). 
           (2) Notwithstanding any other law to the contrary, 
        districts which received payments pursuant to sections 298.018; 
        298.23 to 298.28, except an amount distributed under section 
        298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
        298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
        upon severed mineral values, or recognized revenue pursuant to 
        section 477A.15; shall not include a portion of these aids in 
        their permissible levies pursuant to those sections, but instead 
        shall reduce the permissible levies authorized by this chapter 
        and chapter 124A by the greater of the following: 
           (a) an amount equal to 50 percent of the total dollar 
        amount of the payments received pursuant to those sections or 
        revenue recognized pursuant to section 477A.15 in the previous 
        fiscal year; or 
           (b) an amount equal to the total dollar amount of the 
        payments received pursuant to those sections or revenue 
        recognized pursuant to section 477A.15 in the previous fiscal 
        year less the product of the same dollar amount of payments or 
        revenue times the ratio of the maximum levy allowed the district 
        under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 
        124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
        subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 
        subdivision 5a, to the total levy allowed the district under 
        this section and Minnesota Statutes 1986, sections 124A.03, 
        124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
        subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
        5a, and 124A.20, subdivision 2, for levies certified in 1986. 
           (3) No reduction pursuant to this subdivision shall reduce 
        the levy made by the district pursuant to section 124A.23, to an 
        amount less than the amount raised by a levy of a net tax rate 
        of 6.82 percent times the adjusted net tax capacity for taxes 
        payable in 1990 and thereafter of that district for the 
        preceding year as determined by the commissioner.  The amount of 
        any increased levy authorized by referendum pursuant to section 
        124A.03, subdivision 2, shall not be reduced pursuant to this 
        subdivision.  The amount of any levy authorized by section 
        124.912, subdivision 1, to make payments for bonds issued and 
        for interest thereon, shall not be reduced pursuant to this 
        subdivision.  
           (4) Before computing the reduction pursuant to this 
        subdivision of the capital expenditure facilities levy 
        authorized by section 124.243, the capital expenditure equipment 
        levy authorized by section 124.244, the health and safety levy 
        authorized by sections 124.83 and 124.91, subdivision 6, the 
        commissioner shall ascertain from each affected school district 
        the amount it proposes to levy under each section or 
        subdivision.  The reduction shall be computed on the basis of 
        the amount so ascertained. 
           (5) Notwithstanding any law to the contrary, any amounts 
        received by districts in any fiscal year pursuant to sections 
        298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
        298.405; or any law imposing a tax on severed mineral values; 
        and not deducted from general education aid pursuant to section 
        124A.035, subdivision 5, clause (2), and not applied to reduce 
        levies pursuant to this subdivision shall be paid by the 
        district to the St. Louis county auditor in the following amount 
        by March 15 of each year, the amount required to be subtracted 
        from the previous fiscal year's general education aid pursuant 
        to section 124A.035, subdivision 5, which is in excess of the 
        general education aid earned for that fiscal year.  The county 
        auditor shall deposit any amounts received pursuant to this 
        clause in the St. Louis county treasury for purposes of paying 
        the taconite homestead credit as provided in section 273.135. 
           Sec. 65.  Minnesota Statutes 1996, section 124A.036, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
        education aid for districts must be adjusted for each pupil 
        attending a nonresident district under sections 120.062, 
        120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
        The adjustments must be made according to this subdivision. 
           (a) General education aid paid to a resident district must 
        be reduced by an amount equal to the general education revenue 
        exclusive of compensatory revenue attributable to the pupil in 
        the resident district. 
           (b) General education aid paid to a district serving a 
        pupil in programs listed in this subdivision shall be increased 
        by an amount equal to the general education revenue exclusive of 
        compensatory revenue attributable to the pupil in the 
        nonresident district.  
           (c) If the amount of the reduction to be made from the 
        general education aid of the resident district is greater than 
        the amount of general education aid otherwise due the district, 
        the excess reduction must be made from other state aids due the 
        district. 
           (d) The district of residence shall pay tuition to a 
        district or an area learning center, operated according to 
        paragraph (e), providing special instruction and services to a 
        pupil with a disability, as defined in section 120.03, or a 
        pupil, as defined in section 120.181, who is enrolled in a 
        program listed in this subdivision.  The tuition shall be equal 
        to (1) the actual cost of providing special instruction and 
        services to the pupil, including a proportionate amount for debt 
        service and for capital expenditure facilities and equipment, 
        and debt service but not including any amount for 
        transportation, minus (2) the amount of general education aid, 
        the amount of capital expenditure facilities aid and capital 
        expenditure equipment aid received under section 124.245, 
        subdivision 6, and special education aid, attributable to that 
        pupil, that is received by the district providing special 
        instruction and services. 
           (e) An area learning center operated by a service 
        cooperative, intermediate district, education district, or a 
        joint powers cooperative may elect through the action of the 
        constituent boards to charge tuition for pupils rather than to 
        calculate general education aid adjustments under paragraph (a), 
        (b), or (c).  The tuition must be equal to the greater of the 
        average general education revenue per pupil unit attributable to 
        the pupil, or the actual cost of providing the instruction, 
        excluding transportation costs, if the pupil meets the 
        requirements of section 120.03 or 120.181. 
           Sec. 66.  Minnesota Statutes 1996, section 124A.225, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
        public employee licensed by the board of teaching whose duties 
        are full-time instruction, excluding a teacher for whom 
        categorical aids are received pursuant to sections 124.3201, 
        124.3202, and 124.321.  Except as provided in section 125.230, 
        subdivision 6, instructor does not include supervisory and 
        support personnel, except school social workers as defined in 
        section 125.03.  An instructor whose duties are less than 
        full-time instruction must be included as an equivalent only for 
        the number of hours of instruction in grades kindergarten 
        through 6. 
           Sec. 67.  Minnesota Statutes 1996, section 124A.26, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE REDUCTION.] A district's general 
        education revenue for a school year shall be reduced if the 
        estimated net unappropriated operating fund balance as of June 
        30 in the prior school year exceeds 25 percent of the formula 
        allowance for the current fiscal year times the fund balance 
        pupil units in the prior year.  For purposes of this subdivision 
        and section 124.243, subdivision 2, fund balance pupil units 
        means the number of resident pupil units in average daily 
        membership, including shared time pupils, according to section 
        124A.02, subdivision 20, plus 
           (1) pupils attending the district for which general 
        education aid adjustments are made according to section 
        124A.036, subdivision 5; minus 
           (2) the sum of the resident pupils attending other 
        districts for which general education aid adjustments are made 
        according to section 124A.036, subdivision 5, plus pupils for 
        whom payment is made according to section 126.22, subdivision 8, 
        or 126.23.  The amount of the reduction shall equal the lesser 
        of: 
           (1) the amount of the excess, or 
           (2) $250 times the actual pupil units for the school year. 
           The final adjustment payments made under section 124.195, 
        subdivision 6, must be adjusted to reflect actual net operating 
        fund balances as of June 30 of the prior school year. 
           Sec. 68.  Minnesota Statutes 1996, section 124C.60, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] Two or more districts that 
        have consolidated under section 122.23 or combined under 
        sections 122.241 to 122.248, are eligible for a capital 
        facilities grant of up to $200,000 for fiscal year 1995 and 
        $100,000 thereafter under this section.  To qualify the 
        following criteria must be met: 
           (1) the proposed facility changes are part of the plan 
        according to section 122.242, subdivision 10, or the plan 
        adopted by the reorganized district according to section 
        124.243, subdivision 1; 
           (2) the changes proposed to a facility must be needed to 
        accommodate changes in the educational program due to the 
        reorganization; 
           (3) the utilization of the facility for educational 
        programs is at least 85 percent of capacity; and 
           (4) the grant will be used only to remodel or improve 
        existing facilities. 
           Sec. 69.  Minnesota Statutes 1996, section 124C.60, 
        subdivision 3, is amended to read: 
           Subd. 3.  [USE OF GRANT MONEY.] The grant money may be used 
        for any capital expenditures specified in section 124.243 
        124A.22, subdivision 6 11, clauses (4), (6), (7), (8), (9), and 
        (10). 
           Sec. 70.  Minnesota Statutes 1996, section 126.22, 
        subdivision 7, is amended to read: 
           Subd. 7.  [AID ADJUSTMENTS.] General education aid, capital 
        expenditure aid, and transportation aid attributable to a pupil 
        covered by programs under this section must be paid according to 
        sections 124A.036, subdivision 5, 124.245, subdivision 6, and 
        124.225, subdivision 8l, respectively. 
           Sec. 71.  Minnesota Statutes 1996, section 126.51, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PARENT COMMITTEE.] School boards and 
        American Indian schools shall provide for the maximum 
        involvement of parents of children enrolled in education 
        programs, including language and culture education programs, 
        programs for elementary and secondary grades, special education 
        programs, and support services.  Accordingly, the school board 
        of a school district in which there are ten or more American 
        Indian children enrolled and each American Indian school shall 
        establish a parent committee.  If a committee whose membership 
        consists of a majority of parents of American Indian children 
        has been or is established according to federal, tribal, or 
        other state law, that committee may serve as the committee 
        required by this section and shall be subject to, at least, the 
        requirements of this subdivision and subdivision 1a.  
           The parent committee shall develop its recommendations in 
        consultation with the curriculum advisory committee required by 
        section 126.666 123.972, subdivision 2 3.  This committee shall 
        afford parents the necessary information and the opportunity 
        effectively to express their views concerning all aspects of 
        American Indian education and the educational needs of the 
        American Indian children enrolled in the school or program.  The 
        committee shall also address the need for adult education 
        programs for American Indian people in the community.  The 
        school board or American Indian school shall ensure that 
        programs are planned, operated, and evaluated with the 
        involvement of and in consultation with parents of children 
        served by the programs. 
           Sec. 72.  Minnesota Statutes 1996, section 126.72, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURPOSE.] The school board shall determine the 
        needs of its classroom teachers and the need for changes in its 
        curriculum.  In determining these needs, the school board shall 
        obtain recommendations from classroom teachers, staff 
        responsible for curriculum, and the curriculum advisory 
        committee.  It shall consider assessment results, other test 
        results, the need for mentor teachers, and the district 
        improvement plan portion of the report adopted according to 
        section 126.666 123.972, subdivision 4 5.  Contracts executed 
        under this section shall relate directly to the identified needs.
           Sec. 73.  [REVISOR'S INSTRUCTION; SECTIONS 136A.172 to 
        136A.178.] 
           The revisor shall change the citation from section 136A.179 
        to section 136A.178 in the following sections of Minnesota 
        Statutes:  136A.172; 136A.173; 136A.174; 136A.175; 136A.176; 
        136A.177; and 136A.178. 
           Sec. 74.  Minnesota Statutes 1996, section 136D.94, is 
        amended to read: 
           136D.94 [REFUNDING BONDS.] 
           Sections 136D.281, subdivision 8, 136D.741, subdivision 8, 
        and 136D.87 136D.88, subdivision 8, do not apply to bonds issued 
        solely for refunding purposes. 
           Sec. 75.  [REPEALER; SECTION 144A.61, SUBDIVISION 6 NOTE.] 
           Laws 1989, chapter 282, article 3, section 28, is repealed. 
           Sec. 76.  Minnesota Statutes 1996, section 147A.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GROUNDS LISTED.] The board may refuse to 
        grant registration or may impose disciplinary action as 
        described in this subdivision against any physician assistant.  
        The following conduct is prohibited and is grounds for 
        disciplinary action: 
           (1) failure to demonstrate the qualifications or satisfy 
        the requirements for registration contained in this chapter or 
        rules of the board.  The burden of proof shall be upon the 
        applicant to demonstrate such qualifications or satisfaction of 
        such requirements; 
           (2) obtaining registration by fraud or cheating, or 
        attempting to subvert the examination process.  Conduct which 
        subverts or attempts to subvert the examination process 
        includes, but is not limited to: 
           (i) conduct which violates the security of the examination 
        materials, such as removing examination materials from the 
        examination room or having unauthorized possession of any 
        portion of a future, current, or previously administered 
        licensing examination; 
           (ii) conduct which violates the standard of test 
        administration, such as communicating with another examinee 
        during administration of the examination, copying another 
        examinee's answers, permitting another examinee to copy one's 
        answers, or possessing unauthorized materials; and 
           (iii) impersonating an examinee or permitting an 
        impersonator to take the examination on one's own behalf; 
           (3) conviction, during the previous five years, of a felony 
        reasonably related to the practice of physician assistant.  
        Conviction as used in this subdivision includes a conviction of 
        an offense which if committed in this state would be deemed a 
        felony without regard to its designation elsewhere, or a 
        criminal proceeding where a finding or verdict of guilt is made 
        or returned but the adjudication of guilt is either withheld or 
        not entered; 
           (4) revocation, suspension, restriction, limitation, or 
        other disciplinary action against the person's physician 
        assistant credentials in another state or jurisdiction, failure 
        to report to the board that charges regarding the person's 
        credentials have been brought in another state or jurisdiction, 
        or having been refused registration by any other state or 
        jurisdiction; 
           (5) advertising which is false or misleading, violates any 
        rule of the board, or claims without substantiation the positive 
        cure of any disease or professional superiority to or greater 
        skill than that possessed by another physician assistant; 
           (6) violating a rule adopted by the board or an order of 
        the board, a state, or federal law which relates to the practice 
        of a physician assistant, or in part regulates the practice of a 
        physician assistant, including without limitation sections 
        148A.02, 609.344, and 609.345, or a state or federal narcotics 
        or controlled substance law; 
           (7) engaging in any unethical conduct; conduct likely to 
        deceive, defraud, or harm the public, or demonstrating a willful 
        or careless disregard for the health, welfare, or safety of a 
        patient; or practice which is professionally incompetent, in 
        that it may create unnecessary danger to any patient's life, 
        health, or safety, in any of which cases, proof of actual injury 
        need not be established; 
           (8) failure to adhere to the provisions of the 
        physician-physician assistant agreement; 
           (9) engaging in the practice of medicine beyond that 
        allowed by the physician-physician assistant agreement, 
        including the delegation form or the addendum to the delegation 
        form, or aiding or abetting an unlicensed person in the practice 
        of medicine; 
           (10) adjudication as mentally incompetent, mentally ill or 
        mentally retarded, or as a chemically dependent person, a person 
        dangerous to the public, a sexually dangerous person, or a 
        person who has a sexual psychopathic personality by a court of 
        competent jurisdiction, within or without this state.  Such 
        adjudication shall automatically suspend a registration for its 
        duration unless the board orders otherwise; 
           (11) engaging in unprofessional conduct.  Unprofessional 
        conduct includes any departure from or the failure to conform to 
        the minimal standards of acceptable and prevailing practice in 
        which proceeding actual injury to a patient need not be 
        established; 
           (12) inability to practice with reasonable skill and safety 
        to patients by reason of illness, drunkenness, use of drugs, 
        narcotics, chemicals, or any other type of material, or as a 
        result of any mental or physical condition, including 
        deterioration through the aging process or loss of motor skills; 
           (13) revealing a privileged communication from or relating 
        to a patient except when otherwise required or permitted by law; 
           (14) any use of the title "Physician," "Doctor," or "Dr."; 
           (15) improper management of medical records, including 
        failure to maintain adequate medical records, to comply with a 
        patient's request made pursuant to section 144.335, or to 
        furnish a medical record or report required by law; 
           (16) engaging in abusive or fraudulent billing practices, 
        including violations of the federal Medicare and Medicaid laws 
        or state medical assistance laws; 
           (17) becoming addicted or habituated to a drug or 
        intoxicant; 
           (18) prescribing a drug or device for other than medically 
        accepted therapeutic, experimental, or investigative purposes 
        authorized by a state or federal agency or referring a patient 
        to any health care provider as defined in section 144.335 for 
        services or tests not medically indicated at the time of 
        referral; 
           (19) engaging in conduct with a patient which is sexual or 
        may reasonably be interpreted by the patient as sexual, or in 
        any verbal behavior which is seductive or sexually demeaning to 
        a patient; 
           (20) failure to make reports as required by section 609.215 
        147A.14 or to cooperate with an investigation of the board as 
        required by section 609.215 147A.15, subdivision 3; 
           (21) knowingly providing false or misleading information 
        that is directly related to the care of that patient unless done 
        for an accepted therapeutic purpose such as the administration 
        of a placebo; 
           (22) aiding suicide or aiding attempted suicide in 
        violation of section 609.215 as established by any of the 
        following: 
           (i) a copy of the record of criminal conviction or plea of 
        guilty for a felony in violation of section 609.215, subdivision 
        1 or 2; 
           (ii) a copy of the record of a judgment of contempt of 
        court for violating an injunction issued under section 609.215, 
        subdivision 4; 
           (iii) a copy of the record of a judgment assessing damages 
        under section 609.215, subdivision 5; or 
           (iv) a finding by the board that the person violated 
        section 609.215, subdivision 1 or 2.  The board shall 
        investigate any complaint of a violation of section 609.215, 
        subdivision 1 or 2; or 
           (23) failure to maintain annually reviewed and updated 
        physician-physician assistant agreements, internal protocols, or 
        prescribing delegation forms for each physician-physician 
        assistant practice relationship, or failure to provide copies of 
        such documents upon request by the board. 
           Sec. 77.  Minnesota Statutes 1996, section 148.235, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CLINICAL NURSE SPECIALISTS IN PSYCHIATRIC AND 
        MENTAL HEALTH NURSING.] A registered nurse who (1) has a masters 
        degree, (2) is certified through a national professional nursing 
        organization which certifies clinical specialists in psychiatric 
        and mental health nursing and is included in the list of 
        professional nursing organizations adopted by the board under 
        section 62A.15, subdivision 3a, (3) has successfully completed 
        no less than 30 hours of formal study in the prescribing of 
        psychotropic medications and medications to treat their side 
        effects which included instruction in health assessment, 
        psychotropic classifications, psychopharmacology, indications, 
        dosages, contraindications, side effects, and evidence of 
        application, and (4) has a verbal agreement or a written 
        agreement with a psychiatrist based on standards established by 
        the Minnesota Nurses Association and the Minnesota Psychiatric 
        Association that specifies and defines the delegated 
        responsibilities related to the prescription of drugs in 
        relationship to the diagnosis, may prescribe and administer 
        drugs used to treat psychiatric and behavioral disorders and the 
        side effects of those drugs within the scope of the written 
        agreement and within practice as a clinical specialist in 
        psychiatric and mental health nursing.  The written agreement 
        required under this subdivision shall be based on standards 
        established by the Minnesota Nurses Association and the 
        Minnesota medical Psychiatric Association as of January 1, 1996, 
        unless both associations agree to revisions.  The written 
        agreement shall be maintained at the certified clinical nurse 
        specialist's place of employment and does not need to be filed 
        with the board of nursing. 
           Nothing in this subdivision removes or limits the legal 
        professional liability of the treating psychiatrist, clinical 
        nurse specialist, mental health clinic or hospital for the 
        prescription and administration of drugs by a clinical 
        specialist in accordance with this subdivision. 
           Sec. 78.  Minnesota Statutes 1996, section 168.129, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
        commissioner of public safety shall issue special collegiate 
        license plates to an applicant who: 
           (1) is an owner or joint owner of a passenger automobile, 
        pickup truck, or van; 
           (2) pays a fee determined by the commissioner to cover the 
        costs of handling and manufacturing the plates; 
           (3) pays the registration tax required under section 168.12 
        168.013; 
           (4) pays the fees required under this chapter; 
           (5) contributes at least $25 annually to the scholarship 
        account established in subdivision 6; and 
           (6) complies with laws and rules governing registration and 
        licensing of vehicles and drivers. 
           Sec. 79.  Minnesota Statutes 1996, section 169.145, is 
        amended to read: 
           169.145 [IMPLEMENTS OF HUSBANDRY; SPEED; BRAKES.] 
           No person may: 
           (1) drive or tow an implement of husbandry that exceeds 
        6,000 pounds registered gross weight or gross vehicle weight and 
        is not equipped with brakes; or 
           (2) tow a vehicle registered as a farm trailer that exceeds 
        6,000 pounds registered gross weight or gross vehicle weight and 
        is not equipped with brakes and exceeding 6,000 pounds, at a 
        speed in excess of 25 miles per hour. 
           Sec. 80.  Minnesota Statutes 1996, section 176.081, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LIMITATION OF FEES.] (a) A fee for legal 
        services of 25 percent of the first $4,000 of compensation 
        awarded to the employee and 20 percent of the next $60,000 of 
        compensation awarded to the employee is the maximum permissible 
        fee and does not require approval by the commissioner, 
        compensation judge, or any other party.  All fees, including 
        fees for obtaining medical or rehabilitation benefits, must be 
        calculated according to the formula under this subdivision, 
        except as otherwise provided in clause (1) or (2).  
           (1) The contingent attorney fee for recovery of monetary 
        benefits according to the formula in this section is presumed to 
        be adequate to cover recovery of medical and rehabilitation 
        benefit or services concurrently in dispute.  Attorney fees for 
        recovery of medical or rehabilitation benefits or services shall 
        be assessed against the employer or insurer only if the attorney 
        establishes that the contingent fee is inadequate to reasonably 
        compensate the attorney for representing the employee in the 
        medical or rehabilitation dispute.  In cases where the 
        contingent fee is inadequate the employer or insurer is liable 
        for attorney fees based on the formula in this subdivision or in 
        clause (2). 
           For the purposes of applying the formula where the employer 
        or insurer is liable for attorney fees, the amount of 
        compensation awarded for obtaining disputed medical and 
        rehabilitation benefits under sections 176.102, 176.135, and 
        176.136 shall be the dollar value of the medical or 
        rehabilitation benefit awarded, where ascertainable.  
           (2) The maximum attorney fee for obtaining a change of 
        doctor or qualified rehabilitation consultant, or any other 
        disputed medical or rehabilitation benefit for which a dollar 
        value is not reasonably ascertainable, is the amount charged in 
        hourly fees for the representation or $500, whichever is less, 
        to be paid by the employer or insurer. 
           (3) The fees for obtaining disputed medical or 
        rehabilitation benefits are included in the $13,000 limit in 
        paragraph (b).  An attorney must concurrently file all 
        outstanding disputed issues.  An attorney is not entitled to 
        attorney fees for representation in any issue which could 
        reasonably have been addressed during the pendency of other 
        issues for the same injury. 
           (b) All fees for legal services related to the same injury 
        are cumulative and may not exceed $13,000.  If multiple injuries 
        are the subject of a dispute, the commissioner, compensation 
        judge, or court of appeals shall specify the attorney fee 
        attributable to each injury.  
           (c) If the employer or the insurer or the defendant is 
        given written notice of claims for legal services or 
        disbursements, the claim shall be a lien against the amount paid 
        or payable as compensation.  Subject to the foregoing maximum 
        amount for attorney fees, up to 25 percent of the first $4,000 
        of periodic compensation awarded to the employee and 20 percent 
        of the next $60,000 of periodic compensation awarded to the 
        employee may be withheld from the periodic payments for attorney 
        fees or disbursements if the payor of the funds clearly 
        indicates on the check or draft issued to the employee for 
        payment the purpose of the withholding, the name of the 
        attorney, the amount withheld, and the gross amount of the 
        compensation payment before withholding.  In no case shall fees 
        be calculated on the basis of any undisputed portion of 
        compensation awards.  Allowable fees under this chapter shall be 
        based solely upon genuinely disputed claims or portions of 
        claims, including disputes related to the payment of 
        rehabilitation benefits or to other aspects of a rehabilitation 
        plan.  The existence of a dispute is dependent upon a 
        disagreement after the employer or insurer has had adequate time 
        and information to take a position on liability.  Neither the 
        holding of a hearing nor the filing of an application for a 
        hearing alone may determine the existence of a dispute.  Except 
        where the employee is represented by an attorney in other 
        litigation pending at the department or at the office of 
        administrative hearings, a fee may not be charged after June 1, 
        1996, for services with respect to a medical or rehabilitation 
        issue arising under section 176.102, 176.135, or 176.136 
        performed before the employee has consulted with the department 
        and the department certifies that there is a dispute and that it 
        has tried to resolve the dispute.  
           (d) An attorney who is claiming legal fees for representing 
        an employee in a workers' compensation matter shall file a 
        statement of attorney fees with the commissioner, compensation 
        judge before whom the matter was heard, or workers' compensation 
        court of appeals on cases before the court.  A copy of the 
        signed retainer agreement shall also be filed.  The employee and 
        insurer shall receive a copy of the statement.  The statement 
        shall be on a form prescribed by the commissioner and shall 
        report the number of hours spent on the case.  
           (e) Employers and insurers may not pay attorney fees or 
        wages for legal services of more than $13,000 per case unless 
        the additional fees or wages are approved under subdivision 2.  
           (f) Each insurer and self-insured employer shall file 
        annual statements with the commissioner detailing the total 
        amount of legal fees and other legal costs incurred by the 
        insurer or employer during the year.  The statement shall 
        include the amount paid for outside and in-house counsel, 
        deposition and other witness fees, and all other costs relating 
        to litigation. 
           Sec. 81.  Minnesota Statutes 1996, section 179A.03, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ESSENTIAL EMPLOYEE.] "Essential employee" means 
        firefighters, peace officers subject to licensure under sections 
        626.84 to 626.855 626.863, guards at correctional facilities, 
        confidential employees, supervisory employees, assistant county 
        attorneys, principals, and assistant principals.  However, for 
        state employees, "essential employee" means all employees in law 
        enforcement, health care professionals, correctional guards, 
        professional engineering, and supervisory collective bargaining 
        units, irrespective of severance, and no other employees.  For 
        University of Minnesota employees, "essential employee" means 
        all employees in law enforcement, nursing professional and 
        supervisory units, irrespective of severance, and no other 
        employees.  "Firefighters" means salaried employees of a fire 
        department whose duties include, directly or indirectly, 
        controlling, extinguishing, preventing, detecting, or 
        investigating fires. 
           Sec. 82.  Minnesota Statutes 1996, section 179A.03, 
        subdivision 14, is amended to read: 
           Subd. 14.  [PUBLIC EMPLOYEE.] "Public employee" or 
        "employee" means any person appointed or employed by a public 
        employer except:  
           (a) elected public officials; 
           (b) election officers; 
           (c) commissioned or enlisted personnel of the Minnesota 
        national guard; 
           (d) emergency employees who are employed for emergency work 
        caused by natural disaster; 
           (e) part-time employees whose service does not exceed the 
        lesser of 14 hours per week or 35 percent of the normal work 
        week in the employee's appropriate unit; 
           (f) employees whose positions are basically temporary or 
        seasonal in character and:  (1) are not for more than 67 working 
        days in any calendar year; or (2) are not for more than 100 
        working days in any calendar year and the employees are under 
        the age of 22, are full-time students enrolled in a nonprofit or 
        public educational institution prior to being hired by the 
        employer, and have indicated, either in an application for 
        employment or by being enrolled at an educational institution 
        for the next academic year or term, an intention to continue as 
        students during or after their temporary employment; 
           (g) employees providing services for not more than two 
        consecutive quarters to the state university board or the 
        community college board under the terms of a professional or 
        technical services contract as defined in section 16B.17, 
        subdivision 1; 
           (h) employees of charitable hospitals as defined by section 
        179.35, subdivision 3; 
           (i) full-time undergraduate students employed by the school 
        which they attend under a work-study program or in connection 
        with the receipt of financial aid, irrespective of number of 
        hours of service per week; 
           (j) an individual who is employed for less than 300 hours 
        in a fiscal year as an instructor in an adult vocational 
        education program; 
           (k) an individual hired by a school district, the community 
        college board, or the state university board, to teach one 
        course for up to four credits for one quarter in a year.  
           The following individuals are public employees regardless 
        of the exclusions of clauses (e) and (f):  
           (1) An employee hired by a school district, the community 
        college board, or the state university board, except at the 
        university established in section 136F.017 136F.13 or for 
        community services or community education instruction offered on 
        a noncredit basis:  (i) to replace an absent teacher or faculty 
        member who is a public employee, where the replacement employee 
        is employed more than 30 working days as a replacement for that 
        teacher or faculty member; or (ii) to take a teaching position 
        created due to increased enrollment, curriculum expansion, 
        courses which are a part of the curriculum whether offered 
        annually or not, or other appropriate reasons; and 
           (2) An employee hired for a position under clause (f)(1) if 
        that same position has already been filled under clause (f)(1) 
        in the same calendar year and the cumulative number of days 
        worked in that same position by all employees exceeds 67 
        calendar days in that year.  For the purpose of this paragraph, 
        "same position" includes a substantially equivalent position if 
        it is not the same position solely due to a change in the 
        classification or title of the position. 
           Sec. 83.  Minnesota Statutes 1996, section 179A.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RIGHT TO ORGANIZE.] Public employees have the 
        right to form and join labor or employee organizations, and have 
        the right not to form and join such organizations.  Public 
        employees in an appropriate unit have the right by secret ballot 
        to designate an exclusive representative to negotiate grievance 
        procedures and the terms and conditions of employment with their 
        employer.  Confidential employees of the state and the 
        University of Minnesota are excluded from bargaining.  Other 
        confidential employees, supervisory employees, principals, and 
        assistant principals may form their own organizations.  An 
        employer shall extend exclusive recognition to a representative 
        of or an organization of supervisory or confidential employees, 
        or principals and assistant principals, for the purpose of 
        negotiating terms or conditions of employment, in accordance 
        with sections 179A.01 to 179A.25, applicable to essential 
        employees.  
           Supervisory or confidential employee organizations shall 
        not participate in any capacity in any negotiations which 
        involve units of employees other than supervisory or 
        confidential employees.  Except for organizations which 
        represent supervisors who are:  (1) firefighters, peace officers 
        subject to licensure under sections 626.84 to 626.855 626.863, 
        guards at correctional facilities, or employees at hospitals 
        other than state hospitals; and (2) not state or University of 
        Minnesota employees, a supervisory or confidential employee 
        organization which is affiliated with another employee 
        organization which is the exclusive representative of 
        nonsupervisory or nonconfidential employees of the same public 
        employer shall not be certified, or act as, an exclusive 
        representative for the supervisory or confidential employees.  
        For the purpose of this subdivision, affiliation means either 
        direct or indirect and includes affiliation through a federation 
        or joint body of employee organizations. 
           Sec. 84.  Minnesota Statutes 1996, section 179A.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DIVISION OF UNITS.] If a designated appropriate 
        unit contains both peace officers subject to licensure under 
        sections 626.84 to 626.855 626.863 and essential employees who 
        are not peace officers, the commissioner, at the request of a 
        majority of either the peace officers or the other essential 
        employees within the unit, shall divide the unit into two 
        separate appropriate units, one for the peace officers and one 
        for the other essential employees. 
           Sec. 85.  Minnesota Statutes 1996, section 181.14, is 
        amended to read: 
           181.14 [NOTICE TO BE GIVEN; SETTLEMENT OF DISPUTES.] 
           When any such employee, not having a contract for a 
        definite period of service, quits or resigns employment, the 
        wages or commissions earned and unpaid at the time the employee 
        quits or resigns shall become due and payable within five days 
        thereafter.  Any employer failing or refusing to pay such wages 
        or commissions, after they become due, upon the demand of the 
        employee, shall be liable to the employee from the date of the 
        demand for an additional sum equal to the amount of the 
        employee's average daily earnings provided in the contract of 
        employment, for every day, not exceeding 15 days in all, until 
        such payment or other settlement satisfactory to the employee is 
        made.  If any employee having such a contract gives not less 
        than five days' written notice to the employer of intention to 
        quit, the wages or commissions of the employee giving notice may 
        be demanded and shall become due 24 hours after the employee 
        quits or resigns, and the penalty herein provided shall apply 
        from the date of demand.  If the employer disputes the amount of 
        wages or commissions claimed by the employee under the 
        provisions of this section or section 181.13, and the employer 
        makes a legal tender of the amount which the employer in good 
        faith claims to be due, the employer shall not be liable for any 
        sum greater than the amount so tendered and interest thereon at 
        the legal rate, unless, in an action brought in a court having 
        jurisdiction, the employee recovers a greater sum than the 
        amount so tendered with interest thereon; and if, in the suit, 
        the employee fails to recover a greater sum than that so 
        tendered, with interest, the employee shall pay the cost of the 
        suit, otherwise the cost shall be paid by the employer.  In 
        cases where the discharged or quitting employee was, during 
        employment, entrusted with the collection, disbursement, or 
        handling of money or property, the employer shall have ten 
        secular days after the termination of the employment to audit 
        and adjust the accounts of the employee before the employee's 
        wages or commissions shall become due and payable, and the 
        penalty herein provided shall apply in such case only from the 
        date of demand made after the expiration of the period allowed 
        for audit and adjustment.  If, upon such audit and adjustment of 
        the accounts of the employee, it is found that any money or 
        property entrusted to the employee by the employer has not been 
        properly accounted for or paid over to the employer, as provided 
        by the terms of the contract of employment, the employee shall 
        not be entitled to the benefit of sections 181.13 to 181.17 
        181.171, but the claim for unpaid wages or commissions of such 
        employee, if any, shall be disposed of as provided by existing 
        law.  Wages and commissions paid under this section shall be 
        paid at the usual place of payment unless the employee requests 
        that the wages and commissions be sent to the employee through 
        the mails.  If, in accordance with a request by the employee, 
        the employee's wages and commissions are sent to the employee 
        through the mail, the wages and commissions shall be deemed to 
        have been paid as of the date of their postmark for the purposes 
        of this section.  
           Sec. 86.  Minnesota Statutes 1996, section 181.15, is 
        amended to read: 
           181.15 [WHEN EMPLOYEE NOT ENTITLED TO BENEFITS.] 
           No such servant or employee who hides or stays away to 
        avoid receiving payment, or refuses to receive the same when 
        fully tendered, shall be entitled to any benefit under sections 
        181.13 to 181.17 181.171 for such time as so avoiding payment; 
        provided, when any number of employees enter upon a strike the 
        wages due such striking employees at the time of entering upon 
        such strike shall not become due until the next regular pay day 
        after the commencement of such strike.  
           Sec. 87.  Minnesota Statutes 1996, section 181.16, is 
        amended to read: 
           181.16 [CONSTRUCTION OF SECTIONS 181.13 TO 181.17 181.171.] 
           Sections 181.13 to 181.17 181.171 shall not be construed to 
        apply to any employer or an individual, copartnership, or 
        corporation that is bankrupt, or where a receiver or trustee is 
        acting under the direction of the court.  Payment or tender by 
        check drawn on a bank situated in the county where a laborer is 
        employed shall be a sufficient payment or tender to comply with 
        the provisions of sections 181.13 to 181.17 181.171. 
           Sec. 88.  Minnesota Statutes 1996, section 183.57, 
        subdivision 2, is amended to read: 
           Subd. 2.  Every boiler or pressure vessel as to which any 
        insurance company authorized to do business in this state has 
        issued a policy of insurance, after the inspection thereof, is 
        exempt from inspection made under sections 183.375 to 183.62, 
        while the same continues to be insured and the person, firm, or 
        corporation owning or operating the same has an unexpired 
        certificate of exemption from inspection, issued by the chief 
        boiler inspector.  The fee set by the commissioner pursuant to 
        section 16A.128 16A.1285, on the first object inspected and on 
        each object thereafter shall apply to each exempt object.  A 
        certificate of exemption expires one year from date of issue.  
        The certificate of exemption shall be posted in a conspicuous 
        place near the boiler or pressure vessel or in the plant office 
        or boiler room described therein and to which it relates.  Every 
        insurance company shall give written notice to the chief boiler 
        inspector of the cancellation or expiration of every policy of 
        insurance issued by it with reference to policies in this state, 
        and the cause or reason for the cancellation or expiration.  
        These notices of cancellation or expiration shall show the date 
        of the policy and the date when the cancellation has or will 
        become effective. 
           Sec. 89.  Minnesota Statutes 1996, section 197.447, is 
        amended to read: 
           197.447 [VETERAN, DEFINED.] 
           The word "veteran" as used in Minnesota Statutes, except in 
        sections 136F.28, 196.21, 197.971, and 243.251, means a citizen 
        of the United States or a resident alien who has been separated 
        under honorable conditions from any branch of the armed forces 
        of the United States after having served on active duty for 181 
        consecutive days or by reason of disability incurred while 
        serving on active duty, or who has met the minimum active duty 
        requirement as defined by Code of Federal Regulations, title 38, 
        section 3.12a, or who has active military service certified 
        under section 401, Public Law Number 95-202.  The active 
        military service must be certified by the United States 
        Secretary of Defense as active military service and a discharge 
        under honorable conditions must be issued by the Secretary. 
           Sec. 90.  Minnesota Statutes 1996, section 214.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [HEALTH-RELATED LICENSING BOARD.] "Health-related 
        licensing board" means the board of examiners of nursing home 
        administrators established pursuant to section 144A.19, the 
        board of medical practice created pursuant to section 147.01, 
        the board of nursing created pursuant to section 148.181, the 
        board of chiropractic examiners established pursuant to section 
        148.02, the board of optometry established pursuant to section 
        148.52, the board of psychology established pursuant to section 
        148.90, the board of social work licensing board pursuant to 
        section 148B.19, the board of marriage and family therapy 
        pursuant to section 148B.30, the office of mental health 
        practice established pursuant to section 148B.61, the chemical 
        dependency counseling alcohol and drug counselors licensing 
        advisory council established pursuant to section 148C.02, the 
        board of dietetics and nutrition practice established under 
        section 148.622, the board of dentistry established pursuant to 
        section 150A.02, the board of pharmacy established pursuant to 
        section 151.02, the board of podiatric medicine established 
        pursuant to section 153.02, and the board of veterinary 
        medicine, established pursuant to section 156.01. 
           Sec. 91.  [REPEALER; SECTION 216C.06, SUBDIVISIONS 10 AND 
        11.] 
           Minnesota Statutes 1996, section 216C.06, subdivisions 10 
        and 11, are repealed. 
           Sec. 92.  Minnesota Statutes 1996, section 216C.35, is 
        amended to read: 
           216C.35 [PRIORITIES FOR FUNDING.] 
           All applications for funding shall be made to the 
        commissioner.  Applications shall be accompanied by a report on 
        the energy using characteristics of the building and any other 
        information the commissioner may reasonably require.  A school 
        or local government may apply to the commissioner to receive 
        reimbursement for up to the reasonable costs of mini-audits or 
        maxi-audits performed pursuant to section 216C.23 or 216C.24. In 
        the event that the applicant receives federal money pursuant to 
        the National Energy Conservation Policy Act, Public Law Number 
        95-619 that is intended to be used to pay part or all of the 
        costs of a mini-audit or maxi-audit, the applicant shall receive 
        state money, which, when combined with federal money received, 
        equals the reasonable costs of the mini-audit or maxi-audit. 
           Sec. 93.  Minnesota Statutes 1996, section 244.17, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY.] The commissioner must limit the 
        challenge incarceration program to the following persons: 
           (1) offenders who are committed to the commissioner's 
        custody following revocation of a stayed sentence; and 
           (2) offenders who are committed to the commissioner's 
        custody, who have 36 months or less in or remaining in their 
        term of imprisonment, and who did not receive a dispositional 
        departure under the sentencing guidelines. 
        An eligible inmate is not entitled to participate in the program.
           Sec. 94.  Minnesota Statutes 1996, section 245.462, 
        subdivision 16, is amended to read: 
           Subd. 16.  [MENTAL HEALTH FUNDS.] "Mental health funds" are 
        funds expended under sections 245.73 and 256E.12, federal mental 
        health block grant funds, and funds expended under 
        sections section 256D.06 and 256D.37 to facilities licensed 
        under Minnesota Rules, parts 9520.0500 to 9520.0690. 
           Sec. 95.  Minnesota Statutes 1996, section 245.4881, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTIFICATION AND DETERMINATION OF CASE 
        MANAGEMENT ELIGIBILITY.] (a) The county board shall notify, as 
        appropriate, the child, child's parent, or child's legal 
        representative of the child's potential eligibility for case 
        management services within five working days after receiving a 
        request from an individual or a referral from a provider under 
        section 245.4876, subdivision 4.  
           (b) The county board shall send a notification written in 
        plain language of potential eligibility for case management and 
        family community support services.  The notification shall 
        identify the designated case management providers and shall 
        contain: 
           (1) a brief description of case management and family 
        community support services; 
           (2) the potential benefits of these services; 
           (3) the identity and current phone number of the county 
        employee designated to coordinate case management activities; 
           (4) an explanation of how to obtain county assistance in 
        obtaining a diagnostic assessment, if needed; and 
           (5) an explanation of the appeal process. 
           The county board shall send the notice, as appropriate, to 
        the child, the child's parent, or the child's legal 
        representative, if any.  
           (c) The county board must promptly determine whether a 
        child who requests or is referred for case management services 
        meets the criteria of section 245.471 or 245.4871, subdivision 
        6.  If a diagnostic assessment is needed to make the 
        determination, the county board must offer to assist the child 
        and the child's family in obtaining one.  The county board shall 
        notify, in writing, the child and the child's representative, if 
        any, of the eligibility determination.  If the child is 
        determined to be eligible for case management services, and if 
        the child and the child's family consent to the services, the 
        county board shall refer the child to the case management 
        provider for case management services.  If the child is 
        determined not to be eligible or refuses case management 
        services, the county board shall notify the child of the appeal 
        process and shall offer to refer the child to a mental health 
        provider or other appropriate service provider and to assist the 
        child in making an appointment with the provider of the child's 
        choice. 
           Sec. 96.  Minnesota Statutes 1996, section 252.40, is 
        amended to read: 
           252.40 [SERVICE PRINCIPLES AND RATE-SETTING PROCEDURES FOR 
        DAY TRAINING AND HABILITATION SERVICES FOR ADULTS WITH MENTAL 
        RETARDATION AND RELATED CONDITIONS.] 
           Sections 252.40 to 252.47 252.46 apply to day training and 
        habilitation services for adults with mental retardation and 
        related conditions when the services are authorized to be funded 
        by a county and provided under a contract between a county board 
        and a vendor as defined in section 252.41.  Nothing in sections 
        252.40 to 252.47 252.46 absolves intermediate care facilities 
        for persons with mental retardation or related conditions of the 
        responsibility for providing active treatment and habilitation 
        under federal regulations with which those facilities must 
        comply to be certified by the Minnesota department of health. 
           Sec. 97.  Minnesota Statutes 1996, section 252.41, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] The definitions in this section 
        apply to sections 252.40 to 252.47 252.46. 
           Sec. 98.  Minnesota Statutes 1996, section 252.43, is 
        amended to read: 
           252.43 [COMMISSIONER'S DUTIES.] 
           The commissioner shall supervise county boards' provision 
        of day training and habilitation services to adults with mental 
        retardation and related conditions.  The commissioner shall: 
           (1) determine the need for day training and habilitation 
        services under section 252.28; 
           (2) approve payment rates established by a county under 
        section 252.46, subdivision 1; 
           (3) adopt rules for the administration and provision of day 
        training and habilitation services under sections 252.40 to 
        252.47 252.46 and sections 245A.01 to 245A.16 and 252.28, 
        subdivision 2; 
           (4) enter into interagency agreements necessary to ensure 
        effective coordination and provision of day training and 
        habilitation services; 
           (5) monitor and evaluate the costs and effectiveness of day 
        training and habilitation services; and 
           (6) provide information and technical help to county boards 
        and vendors in their administration and provision of day 
        training and habilitation services. 
           Sec. 99.  Minnesota Statutes 1996, section 252.46, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RATES.] (a) Payment rates to vendors, 
        except regional centers, for county-funded day training and 
        habilitation services and transportation provided to persons 
        receiving day training and habilitation services established by 
        a county board are governed by subdivisions 2 to 19.  The 
        commissioner shall approve the following three payment rates for 
        services provided by a vendor: 
           (1) a full-day service rate for persons who receive at 
        least six service hours a day, including the time it takes to 
        transport the person to and from the service site; 
           (2) a partial-day service rate that must not exceed 75 
        percent of the full-day service rate for persons who receive 
        less than a full day of service; and 
           (3) a transportation rate for providing, or arranging and 
        paying for, transportation of a person to and from the person's 
        residence to the service site.  
           (b) The commissioner may also approve an hourly job-coach, 
        follow-along rate for services provided by one employee at or en 
        route to or from community locations to supervise, support, and 
        assist one person receiving the vendor's services to learn 
        job-related skills necessary to obtain or retain employment when 
        and where no other persons receiving services are present and 
        when all the following criteria are met: 
           (1) the vendor requests and the county recommends the 
        optional rate; 
           (2) the service is prior authorized by the county on the 
        Medicaid Management Information System for no more than 414 
        hours in a 12-month period and the daily per person charge to 
        medical assistance does not exceed the vendor's approved full 
        day plus transportation rates; 
           (3) separate full day, partial day, and transportation 
        rates are not billed for the same person on the same day; 
           (4) the approved hourly rate does not exceed the sum of the 
        vendor's current average hourly direct service wage, including 
        fringe benefits and taxes, plus a component equal to the 
        vendor's average hourly nondirect service wage expenses; and 
           (5) the actual revenue received for provision of hourly 
        job-coach, follow-along services is subtracted from the vendor's 
        total expenses for the same time period and those adjusted 
        expenses are used for determining recommended full day and 
        transportation payment rates under subdivision 5 in accordance 
        with the limitations in subdivision 3. 
           (c) Medical assistance rates for home and community-based 
        service provided under section 256B.501, subdivision 4, by 
        licensed vendors of day training and habilitation services must 
        not be greater than the rates for the same services established 
        by counties under sections 252.40 to 252.47 252.46.  For very 
        dependent persons with special needs the commissioner may 
        approve an exception to the approved payment rate under section 
        256B.501, subdivision 4 or 8. 
           Sec. 100.  Minnesota Statutes 1996, section 252.50, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RATES FOR STATE-OPERATED, COMMUNITY-BASED 
        PROGRAMS FOR PERSONS WITH MENTAL RETARDATION.] State-operated, 
        community-based programs that meet the definition of a facility 
        in Minnesota Rules, part 9553.0020, subpart 19, must be 
        reimbursed consistent with Minnesota Rules, parts 9553.0010 to 
        9553.0080.  State-operated, community-based programs that meet 
        the definition of vendor in section 252.41, subdivision 9, must 
        be reimbursed consistent with the rate setting procedures in 
        sections 252.41 to 252.47 252.46 and Minnesota Rules, parts 
        9525.1200 to 9525.1330.  This subdivision does not operate to 
        abridge the statutorily created pension rights of state 
        employees or collective bargaining agreements reached pursuant 
        to chapter 179A. 
           Sec. 101.  Minnesota Statutes 1996, section 256B.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  Make uniform rules, not inconsistent with law, 
        for carrying out and enforcing the provisions hereof in an 
        efficient, economical, and impartial manner, and to the end that 
        the medical assistance system may be administered uniformly 
        throughout the state, having regard for varying costs of medical 
        care in different parts of the state and the conditions in each 
        case, and in all things to carry out the spirit and purpose of 
        this program, which rules shall be made with the approval of the 
        attorney general on form and legality, shall be furnished 
        immediately to all county agencies, and shall be binding on such 
        county agencies. 
           Sec. 102.  Minnesota Statutes 1996, section 257.41, is 
        amended to read: 
           257.41 [FINANCIAL RESPONSIBILITY.] 
           Financial responsibility for any child placed pursuant to 
        the provisions of the interstate compact on the placement of 
        children shall be determined in accordance with the provisions 
        of article 5 thereof in the first instance.  However, in the 
        event of partial or complete default of performance thereunder, 
        the provisions of sections 518C.01 to 518C.36 518C.101 to 
        518C.902 also may be invoked. 
           Sec. 103.  Minnesota Statutes 1996, section 260.161, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PEACE OFFICER RECORDS OF CHILDREN.] (a) Except 
        for records relating to an offense where proceedings are public 
        under section 260.155, subdivision 1, peace officers' records of 
        children who are or may be delinquent or who may be engaged in 
        criminal acts shall be kept separate from records of persons 18 
        years of age or older and are private data but shall be 
        disseminated:  (1) by order of the juvenile court, (2) as 
        required by section 126.036, (3) as authorized under section 
        13.82, subdivision 2, (4) to the child or the child's parent or 
        guardian unless disclosure of a record would interfere with an 
        ongoing investigation, or (5) as otherwise provided in this 
        subdivision.  Except as provided in paragraph (c), no 
        photographs of a child taken into custody may be taken without 
        the consent of the juvenile court unless the child is alleged to 
        have violated section 169.121 or 169.129.  Peace officers' 
        records containing data about children who are victims of crimes 
        or witnesses to crimes must be administered consistent with 
        section 13.82, subdivisions 2, 3, 4, and 10.  Any person 
        violating any of the provisions of this subdivision shall be 
        guilty of a misdemeanor. 
           In the case of computerized records maintained about 
        juveniles by peace officers, the requirement of this subdivision 
        that records about juveniles must be kept separate from adult 
        records does not mean that a law enforcement agency must keep 
        its records concerning juveniles on a separate computer system.  
        Law enforcement agencies may keep juvenile records on the same 
        computer as adult records and may use a common index to access 
        both juvenile and adult records so long as the agency has in 
        place procedures that keep juvenile records in a separate place 
        in computer storage and that comply with the special data 
        retention and other requirements associated with protecting data 
        on juveniles. 
           (b) Nothing in this subdivision prohibits the exchange of 
        information by law enforcement agencies if the exchanged 
        information is pertinent and necessary to the requesting agency 
        in initiating, furthering, or completing a criminal 
        investigation. 
           (c) A photograph may be taken of a child taken into custody 
        pursuant to section 260.165, subdivision 1, clause (b), provided 
        that the photograph must be destroyed when the child reaches the 
        age of 19 years.  The commissioner of corrections may photograph 
        juveniles whose legal custody is transferred to the 
        commissioner.  Photographs of juveniles authorized by this 
        paragraph may be used only for institution management purposes, 
        case supervision by parole agents, and to assist law enforcement 
        agencies to apprehend juvenile offenders.  The commissioner 
        shall maintain photographs of juveniles in the same manner as 
        juvenile court records and names under this section. 
           (d) Traffic investigation reports are open to inspection by 
        a person who has sustained physical harm or economic loss as a 
        result of the traffic accident.  Identifying information on 
        juveniles who are parties to traffic accidents may be disclosed 
        as authorized under section 13.82, subdivision 4, and accident 
        reports required under section 169.09 may be released under 
        section 169.09, subdivision 13, unless the information would 
        identify a juvenile who was taken into custody or who is 
        suspected of committing an offense that would be a crime if 
        committed by an adult, or would associate a juvenile with the 
        offense, and the offense is not a minor an adult court traffic 
        offense under section 260.193. 
           (e) A law enforcement agency shall notify the principal or 
        chief administrative officer of a juvenile's school of an 
        incident occurring within the agency's jurisdiction if: 
           (1) the agency has probable cause to believe that the 
        juvenile has committed an offense that would be a crime if 
        committed as an adult, that the victim of the offense is a 
        student or staff member of the school, and that notice to the 
        school is reasonably necessary for the protection of the victim; 
        or 
           (2) the agency has probable cause to believe that the 
        juvenile has committed an offense described in subdivision 1b, 
        paragraph (a), clauses (1) to (3), that would be a crime if 
        committed by an adult, regardless of whether the victim is a 
        student or staff member of the school. 
           A law enforcement agency is not required to notify the 
        school under this paragraph if the agency determines that notice 
        would jeopardize an ongoing investigation.  Notwithstanding 
        section 138.17, data from a notice received from a law 
        enforcement agency under this paragraph must be destroyed when 
        the juvenile graduates from the school or at the end of the 
        academic year when the juvenile reaches age 23, whichever date 
        is earlier.  For purposes of this paragraph, "school" means a 
        public or private elementary, middle, or secondary school. 
           (f) In any county in which the county attorney operates or 
        authorizes the operation of a juvenile prepetition or pretrial 
        diversion program, a law enforcement agency or county attorney's 
        office may provide the juvenile diversion program with data 
        concerning a juvenile who is a participant in or is being 
        considered for participation in the program. 
           (g) Upon request of a local social service agency, peace 
        officer records of children who are or may be delinquent or who 
        may be engaged in criminal acts may be disseminated to the 
        agency to promote the best interests of the subject of the data. 
           Sec. 104.  Minnesota Statutes 1996, section 268.0124, is 
        amended to read: 
           268.0124 [PLAIN LANGUAGE IN WRITTEN MATERIALS.] 
           (a) To the extent reasonable and consistent with the goals 
        of providing easily understandable and readable materials and 
        complying with federal and state laws governing the programs, 
        all written materials relating to services and determinations of 
        eligibility for or amounts of benefits that will be given to 
        applicants for or recipients of assistance under a program 
        administered or supervised by the commissioner of economic 
        security must be understandable to a person of average 
        intelligence and education. 
           (b) All written materials relating to determinations of 
        eligibility for or amounts of benefits that will be given to 
        applicants for or recipients of assistance under programs 
        administered or supervised by the commissioner of economic 
        security must be developed to satisfy the plain language 
        requirements of the plain language contract act under sections 
        325G.29 to 325G.36.  Materials may be submitted to the attorney 
        general for review and certification.  Notwithstanding section 
        325G.35, subdivision 1, the attorney general shall review 
        submitted materials to determine whether they comply with the 
        requirements of section 325G.31.  The remedies available 
        pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to 
        these materials.  Failure to comply with this section does not 
        provide a basis for suspending the implementation or operation 
        of other laws governing programs administered by the 
        commissioner. 
           (c) The requirements of this section apply to all materials 
        modified or developed by the commissioner on or after July 1, 
        1988.  The requirements of this section do not apply to 
        materials that must be submitted to a federal agency for 
        approval, to the extent that application of the requirements 
        prevents federal approval. 
           (d) Nothing in this section may be construed to prohibit a 
        lawsuit brought to require the commissioner to comply with this 
        section or to affect individual appeal rights granted pursuant 
        to section 268.10. 
           Sec. 105.  Minnesota Statutes 1996, section 268.03, is 
        amended to read: 
           268.03 [DECLARATION OF PUBLIC POLICY.] 
           As a guide to the interpretation and application of 
        sections 268.03 to 268.31 268.30, the public policy of this 
        state is declared to be as follows:  Economic insecurity due to 
        unemployment is a serious menace to the health, morals, and 
        welfare of the people of this state.  Involuntary unemployment 
        is therefore a subject of general interest and concern which 
        requires appropriate action by the legislature to prevent its 
        spread and to lighten its burdens.  This can be provided by 
        encouraging employers to provide more stable employment and by 
        the systematic accumulation of funds during periods of 
        employment to provide benefits for periods of unemployment, thus 
        maintaining purchasing power and limiting the serious social 
        consequences of poor relief assistance.  The legislature, 
        therefore, declares that in its considered judgment the public 
        good and the general welfare of the citizens of this state will 
        be promoted by providing, under the police powers of the state 
        for the compulsory setting aside of unemployment reserves to be 
        used for the benefit of persons unemployed through no fault of 
        their own.  In recognition of its focus on returning the worker 
        to gainful employment, this program will be known in Minnesota 
        as "reemployment insurance." 
           Sec. 106.  Minnesota Statutes 1996, section 268.15, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONTINGENT ACCOUNT.] There is hereby created in 
        the state treasury a special account, to be known as the 
        economic security contingent account, which shall not lapse nor 
        revert to any other fund.  Such account shall consist of all 
        money appropriated therefor by the legislature, all money in the 
        form of interest and penalties collected pursuant to sections 
        268.16 and 268.18, and all money received in the form of 
        voluntary contributions to this account and interest thereon.  
        All money in such account shall be supplemental to all federal 
        money that would be available to the commissioner but for the 
        existence of this account.  Moneys in this account are hereby 
        appropriated to the commissioner and shall be available to the 
        commissioner for such expenditures as the commissioner may deem 
        necessary in connection with the administration of sections 
        268.04 to 268.231 268.23.  Whenever the commissioner expends 
        money from said contingent account for the proper and efficient 
        administration of the Minnesota economic security law for which 
        funds have not yet been made available by the federal 
        government, such money so withdrawn from the contingent account 
        shall be replaced as hereinafter provided.  Upon the deposit in 
        the economic security administration fund of moneys which are 
        received in reimbursement of payments made as above provided for 
        said contingent account, the commissioner shall certify to the 
        state treasurer the amount of such reimbursement and thereupon 
        the state treasurer shall transfer such amount from the economic 
        security administration fund to said contingent account.  All 
        money in this account shall be deposited, administered, and 
        disbursed in the same manner and under the same conditions and 
        requirements as is provided by law for the other special 
        accounts in the state treasury.  The state treasurer shall be 
        liable on the treasurer's official bond for the faithful 
        performance of duties in connection with the economic security 
        contingent account provided for herein.  Notwithstanding 
        anything to the contrary contained herein, on June 30 of each 
        year, except 1982, all amounts in excess of $300,000 in this 
        account shall be paid over to the reemployment insurance fund 
        established under section 268.05 and administered in accordance 
        with the provisions set forth therein. 
           Sec. 107.  Minnesota Statutes 1996, section 268.361, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TERMS.] For the purposes of sections 
        268.361 to 268.367 268.366, the following terms have the 
        meanings given them. 
           Sec. 108.  Minnesota Statutes 1996, section 272.12, is 
        amended to read: 
           272.12 [CONVEYANCES, TAXES PAID BEFORE RECORDING.] 
           When: 
           (a) a deed or other instrument conveying land, 
           (b) a plat of any town site or addition thereto, 
           (c) a survey required pursuant to section 508.47, 
           (d) a condominium plat subject to chapter 515 or 515A or a 
        declaration that contains such a plat, or 
           (e) a common interest community plat subject to chapter 
        515B or a declaration that contains such a plat, 
        is presented to the county auditor for transfer, the auditor 
        shall ascertain from the records if there be taxes delinquent 
        upon the land described therein, or if it has been sold for 
        taxes.  An assignment of a sheriff's or referee's certificate of 
        sale, when the certificate of sale describes real estate, and 
        certificates of redemption from mortgage or lien foreclosure 
        sales, when the certificate of redemption encompasses real 
        estate and is issued to a junior creditor, are considered 
        instruments conveying land for the purposes of this section and 
        section 272.121.  If there are taxes delinquent, the auditor 
        shall certify to the same; and upon payment of such taxes, or in 
        case no taxes are delinquent, shall transfer the land upon the 
        books of the auditor's office, and note upon the instrument, 
        over official signature, the words, "no delinquent taxes and 
        transfer entered," or, if the land described has been sold or 
        assigned to an actual purchaser for taxes, the words "paid by 
        sale of land described within;" and, unless such statement is 
        made upon such instrument, the county recorder or the registrar 
        of titles shall refuse to receive or record the same; provided, 
        that sheriff's or referees' certificates of sale on execution or 
        foreclosure of a lien or mortgage, certificates of redemption 
        from mortgage or lien foreclosure sales issued to the redeeming 
        mortgagor or lienee, deeds of distribution made by a personal 
        representative in probate proceedings, decrees and judgments, 
        receivers receipts, patents, and copies of town or statutory 
        city plats, in case the original plat filed in the office of the 
        county recorder has been lost or destroyed, and the instruments 
        releasing, removing and discharging reversionary and forfeiture 
        provisions affecting title to land and instruments releasing, 
        removing or discharging easement rights in land or building or 
        other restrictions, may be recorded without such certificate; 
        and, provided that instruments conveying land and, as 
        appurtenant thereto an easement over adjacent tract or tracts of 
        land, may be recorded without such certificate as to the land 
        covered by such easement; and provided further, that any 
        instrument granting an easement made in favor of any public 
        utility or pipe line for conveying gas, liquids or solids in 
        suspension, in the nature of a right of way over, along, across 
        or under a tract of land may be recorded without such 
        certificate as to the land covered by such easement.  Any 
        instrument amending or restating the declarations, bylaws, 
        plats, or other enabling documents governing homeowners 
        associations of condominiums, townhouses, common interest 
        ownership communities, and other planned unit developments may 
        be recorded without the auditor's certificate. 
           A deed of distribution made by a personal representative in 
        a probate proceeding, a decree, or a judgment that conveys land 
        shall be presented to the county auditor, who shall transfer the 
        land upon the books of the auditor's office and note upon the 
        instrument, over official signature, the words, "transfer 
        entered", and the instrument may then be recorded.  A decree or 
        judgment that affects title to land but does not convey land may 
        be recorded without presentation to the auditor. 
           A violation of this section by the county recorder or the 
        registrar of titles shall be a gross misdemeanor, and, in 
        addition to the punishment therefor, the recorder or registrar 
        shall be liable to the grantee of any instrument so recorded for 
        the amount of any damages sustained. 
           When, as a condition to permitting the recording of deed or 
        other instrument affecting the title to real estate previously 
        forfeited to the state under the provisions of sections 281.16 
        to 281.27 281.25, county officials, after such real estate has 
        been purchased or repurchased, have required the payment of 
        taxes erroneously assumed to have accrued against such real 
        estate after forfeiture and before the date of purchase or 
        repurchase, the sum required to be so paid shall be refunded to 
        the persons entitled thereto out of moneys in the funds in which 
        the sum so paid was placed.  Delinquent taxes are those taxes 
        deemed delinquent under section 279.02. 
           Sec. 109.  Minnesota Statutes 1996, section 273.1398, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
        terms defined in this subdivision have the meanings given them. 
           (b) "Unique taxing jurisdiction" means the geographic area 
        subject to the same set of local tax rates. 
           (c) "Previous net tax capacity" means the product of the 
        appropriate net class rates for the year previous to the year in 
        which the aid is payable, and estimated market values for the 
        assessment two years prior to that in which aid is payable.  
        "Total previous net tax capacity" means the previous net tax 
        capacities for all property within the unique taxing 
        jurisdiction.  The total previous net tax capacity shall be 
        reduced by the sum of (1) the unique taxing jurisdiction's 
        previous net tax capacity of commercial-industrial property as 
        defined in section 473F.02, subdivision 3, or 276A.02 276A.01, 
        subdivision 3, multiplied by the ratio determined pursuant to 
        section 473F.08, subdivision 6, or 276A.06, subdivision 7, for 
        the municipality, as defined in section 473F.02, subdivision 8, 
        or 276A.06, subdivision 7 276A.01, subdivision 8, in which the 
        unique taxing jurisdiction is located, (2) the previous net tax 
        capacity of the captured value of tax increment financing 
        districts as defined in section 469.177, subdivision 2, and (3) 
        the previous net tax capacity of transmission lines deducted 
        from a local government's total net tax capacity under section 
        273.425.  Previous net tax capacity cannot be less than zero. 
           (d) "Equalized market values" are market values that have 
        been equalized by dividing the assessor's estimated market value 
        for the second year prior to that in which the aid is payable by 
        the assessment sales ratios determined by class in the 
        assessment sales ratio study conducted by the department of 
        revenue pursuant to section 124.2131 in the second year prior to 
        that in which the aid is payable.  The equalized market values 
        shall equal the unequalized market values divided by the 
        assessment sales ratio. 
           (e) "Equalized school levies" means the amounts levied for: 
           (1) general education under section 124A.23, subdivision 2; 
           (2) supplemental revenue under section 124A.22, subdivision 
        8a; 
           (3) transition revenue under section 124A.22, subdivision 
        13c; 
           (4) basic transportation under section 124.226, subdivision 
        1; and 
           (5) referendum revenue under section 124A.03. 
           (f) "Current local tax rate" means the quotient derived by 
        dividing the taxes levied within a unique taxing jurisdiction 
        for taxes payable in the year prior to that for which aids are 
        being calculated by the total previous net tax capacity of the 
        unique taxing jurisdiction.  
           (g) For purposes of calculating and allocating homestead 
        and agricultural credit aid authorized pursuant to subdivision 2 
        and the disparity reduction aid authorized in subdivision 3, 
        "gross taxes levied on all properties," "gross taxes," or "taxes 
        levied" means the total net tax capacity based taxes levied on 
        all properties except that levied on the captured value of tax 
        increment districts as defined in section 469.177, subdivision 
        2, and that levied on the portion of commercial industrial 
        properties' assessed value or gross tax capacity, as defined in 
        section 473F.02, subdivision 3, subject to the areawide tax as 
        provided in section 473F.08, subdivision 6, in a unique taxing 
        jurisdiction.  "Gross taxes" are before any reduction for 
        disparity reduction aid but "taxes levied" are after any 
        reduction for disparity reduction aid.  Gross taxes levied or 
        taxes levied cannot be less than zero.  
           "Taxes levied" excludes equalized school levies. 
           (h) "Household adjustment factor" means the number of 
        households for the second most recent year preceding that in 
        which the aids are payable divided by the number of households 
        for the third most recent year.  The household adjustment factor 
        cannot be less than one.  
           (i) "Growth adjustment factor" means the household 
        adjustment factor in the case of counties.  In the case of 
        cities, towns, school districts, and special taxing districts, 
        the growth adjustment factor equals one.  The growth adjustment 
        factor cannot be less than one.  
           (j) "Homestead and agricultural credit base" means the 
        previous year's certified homestead and agricultural credit aid 
        determined under subdivision 2 less any permanent aid reduction 
        in the previous year to homestead and agricultural credit aid.  
           (k) "Net tax capacity adjustment" means (1) the tax base 
        differential defined in subdivision 1a, multiplied by (2) the 
        unique taxing jurisdiction's current local tax rate.  The net 
        tax capacity adjustment cannot be less than zero. 
           (l) "Fiscal disparity adjustment" means a taxing 
        jurisdiction's fiscal disparity distribution levy under section 
        473F.08, subdivision 3, clause (a), or 276A.06, subdivision 3, 
        clause (a), for taxes payable in the year prior to that for 
        which aids are being calculated, multiplied by the ratio of the 
        tax base differential percent referenced in subdivision 1a for 
        the highest class rate for class 3 property for taxes payable in 
        the year prior to that for which aids are being calculated to 
        the highest class rate for class 3 property for taxes payable in 
        the second prior year to that for which aids are being 
        calculated.  In the case of school districts, the fiscal 
        disparity distribution levy shall exclude that part of the levy 
        attributable to equalized school levies. 
           Sec. 110.  [REPEALER; SECTION 273.1398 NOTE.] 
           The amendment to section 273.1398, subdivision 1, paragraph 
        (c), by Laws 1996, chapter 471, article 11, section 1, is 
        repealed. 
           Sec. 111.  Minnesota Statutes 1996, section 279.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  In the case of class 1b agricultural homestead, 
        class 2a agricultural homestead property, and class 2b(2) 2b(3) 
        agricultural nonhomestead property, no penalties shall attach to 
        the second one-half property tax payment as provided in this 
        section if paid by November 15.  Thereafter for class 1b 
        agricultural homestead and class 2a homestead property, on 
        November 16 following, a penalty of six percent shall accrue and 
        be charged on all such unpaid taxes and on December 1 following, 
        an additional two percent shall be charged on all such unpaid 
        taxes.  Thereafter for class 2b(2) 2b(3) agricultural 
        nonhomestead property, on November 16 following, a penalty of 
        eight percent shall accrue and be charged on all such unpaid 
        taxes and on December 1 following, an additional four percent 
        shall be charged on all such unpaid taxes. 
           If the owner of class 1b agricultural homestead, class 2a, 
        or class 2b(2) 2b(3) agricultural property receives a 
        consolidated property tax statement that shows only an aggregate 
        of the taxes and special assessments due on that property and on 
        other property not classified as class 1b agricultural 
        homestead, class 2a, or class 2b(2) 2b(3) agricultural property, 
        the aggregate tax and special assessments shown due on the 
        property by the consolidated statement will be due on November 
        15 provided that at least 50 percent of the property's market 
        value is classified class 1b agricultural, class 2a, or 
        class 2b(2) 2b(3) agricultural. 
           Sec. 112.  Minnesota Statutes 1996, section 280.05, is 
        amended to read: 
           280.05 [PROHIBITED PURCHASERS.] 
           A county auditor, county treasurer, court administrator of 
        the district court, or county assessor, or deputy or clerk or 
        employee of such officer, and a commissioner for tax forfeited 
        lands or assistant to such commissioner, may not purchase at 
        such sale, or procure an assignment of the right acquired by the 
        state in lands bid in for it at such sale, as in this chapter 
        provided in sections 280.06 to 280.12 280.11, either personally, 
        or as agent or attorney for any other person, except that such 
        officer, deputy, court administrator, employee or commissioner 
        for tax forfeited lands or assistant to such commissioner, if an 
        owner or lienholder of the lands, may purchase the lands, or 
        procure such assignment of the state's right in such lands. 
           Sec. 113.  Minnesota Statutes 1996, section 280.28, 
        subdivision 2, is amended to read: 
           Subd. 2.  There shall be paid at the time of delivery by 
        the person to whom delivered for each certificate issued to an 
        actual purchaser under sections section 280.03 and 280.13 a fee 
        of $1 and for each notice of expiration of redemption prepared 
        by the auditor for the holder of a certificate a fee of $2.  
        These fees shall be paid to the county treasurer upon the 
        auditor's statement of the amount due.  The amount of such fees 
        shall be added to the amount payable under section 281.02 upon 
        redemption. 
           Sec. 114.  Minnesota Statutes 1996, section 280.33, is 
        amended to read: 
           280.33 [CERTIFICATES AND DEEDS AS EVIDENCE; GROUNDS FOR 
        SETTING ASIDE.] 
           The certificates and deeds issued pursuant to sections 
        280.03, and 280.11, 280.13, and 280.25, or the record thereof, 
        shall be prima facie evidence that the parcel described therein 
        was subject to taxation for the year or years therein stated; 
        that such parcel was listed and assessed at the time and in the 
        manner required by law; that the taxes were levied according to 
        law; that the judgment pursuant to which the sale was made was 
        duly entered, and that the court had jurisdiction to enter the 
        same; that all requirements of law with respect to the sale had 
        been complied with; that such parcel had not been redeemed from 
        the sale; and of title in the grantee therein after the time for 
        redemption has expired; provided, that when any such certificate 
        or deed embraces university, school, or other state lands, the 
        title whereof is in the state, no other or greater interest 
        shall be held to be thereby conveyed than that acquired under 
        the certificate of the commissioner of finance.  No sale shall 
        be set aside or held invalid by reason of any misrecitals in 
        such certificate or deed; nor unless the party objecting to the 
        same prove either that the taxes were paid before the judgment 
        was rendered, or that such parcel was exempt from taxation, or 
        that the court rendering the judgment pursuant to which the sale 
        was made had not jurisdiction to render the same, or that after 
        the judgment and before the sale such judgment had been 
        satisfied, or that notice of sale as required by this chapter 
        was not given, or that such parcel was not offered at such sale 
        to the bidder who would pay the amount for which the parcel was 
        to be sold at the lowest rate of interest, as provided in this 
        chapter; provided, that every judgment rendered against any 
        parcel for a tax which was paid before the entry thereof, or 
        when the land was exempt from taxation, shall be void, and all 
        sales made under any such judgment or under a judgment which has 
        been paid shall be void, and no title or interest in any parcel 
        sold under such judgment shall pass or be conveyed to any 
        purchaser at such sale.  In any action brought to set aside or 
        to cancel such sale, or in which the validity of such sale may 
        arise, the tax receipt, or the treasurer's duplicate thereof, or 
        other record of the payment of such tax in the office of the 
        county auditor or the county treasurer, shall be prima facie 
        evidence of such payment; but such payment shall not be 
        established by parol testimony only.  In such action, the county 
        in which the land is situated, or the state, if either claim any 
        interest in the land sold under such judgment, may be made a 
        party defendant, in which case the county attorney shall appear 
        in behalf of such county or state, or both. 
           Sec. 115.  Minnesota Statutes 1996, section 280.35, is 
        amended to read: 
           280.35 [INVALID CERTIFICATE.] 
           If any certificate issued pursuant to sections 280.03, and 
        280.11, and 280.13 to an actual purchaser prove to be invalid 
        for any other cause than that the land described therein was not 
        subject to taxation, or that the taxes had been paid prior to 
        the sale, or that the assessment or levy was void, the lien of 
        the state on the parcel of land sold, as provided in section 
        272.31 shall be transferred, without any act whatever, to, and 
        vested in, the holder of such certificate, or the holder's 
        personal representatives, heirs, or assigns.  Such holder, or 
        the personal representatives, heirs, or assigns of the holder, 
        may collect out of the property covered by such lien, by sale 
        thereof by foreclosure, or other proper action or proceeding, 
        the amount of taxes, penalties, and interest due thereon at the 
        time of such sale, with interest thereon at the rate of 12 
        percent per annum, together with the amount of all subsequent 
        taxes paid, with interest thereon at said rate, and the costs 
        and expenses of such action. 
           Sec. 116.  Minnesota Statutes 1996, section 281.16, is 
        amended to read: 
           281.16 [STATED PERIOD OF REDEMPTION.] 
           The term "stated period of redemption," as used in sections 
        281.16 to 281.27 281.25, means the period of time specified in 
        those sections or in any other law for redemption of lands from 
        any tax judgment sale, including any extension of the period 
        originally prescribed, but not including any further time 
        allowed for redemption on account of requirements for giving 
        notice of expiration. 
           Sec. 117.  Minnesota Statutes 1996, section 281.32, is 
        amended to read: 
           281.32 [LIMITATION OF TIME FOR FILING CERTIFICATE; 1925 AND 
        PRIOR YEARS.] 
           No notice of the expiration of the time of redemption upon 
        any certificate of tax judgment sale issued to an actual 
        purchaser shall be issued or served after the expiration of six 
        years from the date of the tax judgment sale described by any 
        such certificate, nor shall any such certificate be recorded in 
        the office of the county recorder or filed in the office of the 
        registrar of titles of the proper county after the expiration of 
        seven years from the date of such sale. 
           No notice of the expiration of the time of redemption upon 
        any state assignment certificate issued under the provisions of 
        section 280.11, or upon any certificate issued to an actual 
        purchaser at any forfeited tax sale held under the provisions of 
        sections 280.12, 280.13, and 280.25, shall be issued or served 
        after the expiration of six years from the date of such 
        certificate, nor shall any such certificate or deed issued 
        pursuant thereto be recorded in the office of the county 
        recorder after the expiration of seven years from the date of 
        such certificate. 
           All such certificates upon which such notice of expiration 
        of redemption shall not be issued and served and such 
        certificates recorded or filed in the office of the proper 
        county recorder or registrar of titles within the time limited 
        by this section shall be void and of no force and effect for any 
        purpose, and failure to serve such notice or record or file such 
        certificate within the time herein prescribed shall operate to 
        extinguish the lien of the purchaser for the taxes for the year 
        or years in such certificate described and appearing and the 
        lien of all subsequent taxes paid under such certificate. 
           Sec. 118.  Minnesota Statutes 1996, section 282.07, is 
        amended to read: 
           282.07 [AUDITOR TO CANCEL TAXES.] 
           Immediately after forfeiture to the state of any parcel of 
        land, as provided by sections 281.16 to 281.27 281.25, the 
        county auditor shall cancel all taxes and tax liens appearing 
        upon the records, both delinquent and current, and all special 
        assessments, delinquent or otherwise.  When the interest of a 
        purchaser of state trust fund land sold under certificate of 
        sale, or of the purchaser's heirs or assigns or successors in 
        interest, shall by reason of tax delinquency be transferred to 
        the state as provided by law, such interest shall pass to the 
        state free from any trust obligation to any taxing district and 
        free from all special assessments and such land shall become 
        unsold trust fund land. 
           Sec. 119.  Minnesota Statutes 1996, section 284.04, is 
        amended to read: 
           284.04 [ACTION TO QUIET TITLE.] 
           Any person holding a tax certificate issued under section 
        280.03, or 280.11, or 280.13 at any time after the expiration of 
        the period of redemption from the tax sale on which such 
        certificate was issued may commence an action in the district 
        court of the county where the land embraced in such certificate 
        lies, to quiet title thereto, without taking possession of such 
        land; and any person who claims or appears of record to have any 
        interest in or lien upon the same, or any part thereof, may be 
        made defendant.  At the time of the commencement of such action 
        the plaintiff shall file a notice of the pendency of the action 
        with the county recorder, as provided by law.  If it shall 
        appear that the plaintiff's title is invalid for any cause other 
        than one which renders the taxes embraced in such certificate 
        void, the court shall not dismiss such action, but ascertain the 
        amount due the plaintiff for all taxes, interest, penalties, and 
        costs embraced in such certificate, and of all subsequent taxes, 
        penalties, interests, and costs paid by the plaintiff or the 
        plaintiff's assignors, with interest thereon at the rate of 12 
        percent per annum from the date of such certificate or payment, 
        and adjudge the same to be a lien against such land in favor of 
        such holder, and direct a sale thereof to satisfy such judgment 
        and costs of sale.  All the provisions of sections 284.01 to 
        284.03, relating to the sales therein provided for and to 
        redemptions therefrom, shall be applicable to sales authorized 
        by this section. 
           Sec. 120.  Minnesota Statutes 1996, section 290.091, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit 
        is allowed against the tax imposed by this chapter on 
        individuals, trusts, and estates equal to the minimum tax credit 
        for the taxable year.  The minimum tax credit equals the 
        adjusted net minimum tax for taxable years beginning after 
        December 31, 1988, reduced by the minimum tax credits allowed in 
        a prior taxable year.  The credit may not exceed the excess (if 
        any) for the taxable year of 
           (1) the regular tax, over 
           (2) the greater of (i) the tentative alternative minimum 
        tax, or (ii) zero. 
           (b) The adjusted net minimum tax for a taxable year equals 
        the lesser of the net minimum tax or the excess (if any) of 
           (1) the tentative minimum tax, over 
           (2) seven percent of the sum of 
           (i) adjusted gross income as defined in section 62 of the 
        Internal Revenue Code, 
           (ii) interest income as defined in section 290.01, 
        subdivision 19a, clause (1), 
           (iii) interest on specified private activity bonds, as 
        defined in section 57(a)(5) of the Internal Revenue Code, to the 
        extent not included under clause (ii), 
           (iv) depletion as defined in section 57(a)(1), determined 
        without regard to the last sentence of paragraph (1), of the 
        Internal Revenue Code, less 
           (v) the deductions provided in subdivision 2, paragraph 
        (a), clauses (5), items (i), (ii), and (iii) (1), (2), and (3) 
        of the second series of clauses, and 
           (vi) the exemption amount determined under subdivision 3. 
           In the case of an individual who is not a Minnesota 
        resident for the entire year, adjusted net minimum tax must be 
        multiplied by the fraction defined in section 290.06, 
        subdivision 2c, paragraph (e).  In the case of a trust or 
        estate, adjusted net minimum tax must be multiplied by the 
        fraction defined under subdivision 4, paragraph (b). 
           Sec. 121.  Minnesota Statutes 1996, section 297A.259, is 
        amended to read: 
           297A.259 [LOTTERY TICKETS; IN LIEU TAX.] 
           Sales of state lottery tickets are exempt from the tax 
        imposed under section 297A.02.  The state lottery must on or 
        before the 20th day of each month transmit to the commissioner 
        of revenue an amount equal to the gross receipts from the sale 
        of lottery tickets for the previous month multiplied by the 
        combined tax rate under sections section 297A.02, subdivision 1, 
        and 297A.021, subdivision 1.  The resulting payment is in lieu 
        of the sales tax that otherwise would be imposed by this chapter.
        The commissioner shall deposit the money transmitted as provided 
        by section 297A.44 and the money must be treated as other 
        proceeds of the sales tax.  Gross receipts for purposes of this 
        section mean the proceeds of the sale of tickets before 
        deduction of a commission or other compensation paid to the 
        vendor or retailer for selling tickets. 
           Sec. 122.  Minnesota Statutes 1996, section 299C.11, is 
        amended to read: 
           299C.11 [IDENTIFICATION DATA FURNISHED TO BUREAU.] 
           (a) The sheriff of each county and the chief of police of 
        each city of the first, second, and third classes shall furnish 
        the bureau, upon such form as the superintendent shall 
        prescribe, with such finger and thumb prints, photographs, 
        distinctive physical mark identification data, and other 
        identification data as may be requested or required by the 
        superintendent of the bureau, which may be taken under the 
        provisions of section 299C.10, of persons who shall be convicted 
        of a felony, gross misdemeanor, or who shall be found to have 
        been convicted of a felony or gross misdemeanor, within ten 
        years next preceding their arrest.  
           (b) No petition under chapter 609A is required if the 
        person has not been convicted of any felony or gross 
        misdemeanor, either within or without the state, within the 
        period of ten years immediately preceding the determination of 
        all pending criminal actions or proceedings in favor of the 
        arrested person, and either of the following occurred: 
           (1) all charges were dismissed prior to a determination of 
        probable cause; or 
           (2) the prosecuting authority declined to file any charges 
        and a grand jury did not return an indictment. 
           Where these conditions are met, the bureau or agency shall, 
        upon demand, return to the arrested person finger and thumb 
        prints, photographs, distinctive physical mark identification 
        data, and other identification data, and all copies and 
        duplicates of them. 
           (c) Except as otherwise provided in paragraph (b), upon the 
        determination of all pending criminal actions or proceedings in 
        favor of the arrested person, and the granting of the petition 
        of the arrested person under chapter 609A, the bureau shall seal 
        finger and thumb prints, photographs, distinctive physical mark 
        identification data, and other identification data, and all 
        copies and duplicates of them if the arrested person has not 
        been convicted of any felony or gross misdemeanor, either within 
        or without the state, within the period of ten years immediately 
        preceding such determination. 
           (d) DNA samples and DNA records of the arrested person 
        shall not be returned, sealed, or destroyed as to a charge 
        supported by probable cause.  
           (e) For purposes of this section, "determination of all 
        pending criminal actions or proceedings in favor of the arrested 
        person" does not include: 
           (1) the sealing of a criminal record pursuant to section 
        152.18, subdivision 1, 242.31, 609.168, or chapter 609A; 
           (2) the arrested person's successful completion of a 
        diversion program; 
           (3) an order of discharge under section 609.165; or 
           (4) a pardon granted under section 638.02. 
           Sec. 123.  Minnesota Statutes 1996, section 299F.46, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [HOTEL INSPECTION.] (a) It shall be the 
        duty of the commissioner of public safety to inspect, or cause 
        to be inspected, at least once every three years, every hotel in 
        this state; and, for that purpose, the commissioner, or the 
        commissioner's deputies, or designated alternates or agents 
        shall have the right to enter or have access thereto at any 
        reasonable hour; and, when, upon such inspection, it shall be 
        found that the hotel so inspected does not conform to or is not 
        being operated in accordance with the provisions of sections 
        157.011 and 157.15 to 157.22, in so far as the same relate to 
        fire prevention or fire protection of hotels, or the rules 
        promulgated thereunder, or is being maintained or operated in 
        such manner as to violate the uniform fire code promulgated 
        pursuant to section 299F.011 or any other law of this state 
        relating to fire prevention and fire protection of hotels, the 
        commissioner and the deputies or designated alternates or agents 
        shall report such a situation to the hotel inspector who shall 
        proceed as provided for in sections 157.01 to 157.14 chapter 157.
           (b) The word "hotel", as used in this subdivision, has the 
        meaning given in section 299F.391. 
           Sec. 124.  Minnesota Statutes 1996, section 299L.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LOTTERY.] (a) The director shall when 
        required under chapter 349A or when requested by the director of 
        the lottery conduct background checks on employees of the state 
        lottery, lottery retailers, and bidders of lottery procurement 
        contracts.  
           (b) The director shall, when so requested by the director 
        of the state lottery or when the director believes it to be 
        reasonable and necessary, conduct investigations of lottery 
        retailers, applicants for lottery retailer contracts, suppliers 
        of goods or services to the state lottery, and persons bidding 
        on contracts for goods or services with the state lottery.  
           (c) The director shall conduct an annual security audit of 
        the state lottery, or arrange for such an audit by an outside 
        agency or person, firm, or corporation.  The director shall 
        report to the state lottery board and the director of the 
        lottery on the results of the audit. 
           Sec. 125.  Minnesota Statutes 1996, section 326.2421, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXEMPTION.] Except as provided in subdivision 3, 
        no person exempt under subdivision 1 or licensed pursuant to 
        subdivision 3 may be required to obtain any authorization, 
        permit, franchise, or license from, or pay any fee, franchise 
        tax, or other assessment to, any agency, department, board, or 
        political subdivision of the state as a condition for performing 
        any work described herein.  The requirements of this section 
        shall not apply to telephone companies as defined under section 
        237.01 nor to their employees, that are only engaged in the 
        laying out, installation, and repair of telephone systems. 
           Sec. 126.  Minnesota Statutes 1996, section 327A.08, is 
        amended to read: 
           327A.08 [LIMITATIONS.] 
           Notwithstanding any other provision of Laws 1981, chapter 
        119, sections 1 to 10 327A.01 to 327A.07:  
           (a) The terms of the home improvement warranties required 
        by Laws 1981, chapter 119, sections 1 to 10 327A.01 to 327A.07, 
        commence upon completion of the home improvement and the term 
        shall not be required to be renewed or extended if the home 
        improvement contractor performs additional improvements required 
        by warranty; 
           (b) The home improvement warranties required by Laws 1981, 
        chapter 119, sections 1 to 10 327A.01 to 327A.07, shall not 
        include products or materials installed that are already covered 
        by implied or written warranty; and 
           (c) The home improvement warranties required by Laws 1981, 
        chapter 119, sections 1 to 10 327A.01 to 327A.07, are intended 
        to be implied warranties imposing an affirmative obligation upon 
        home improvement contractors, and Laws 1981, chapter 119, 
        sections 1 to 10 327A.01 to 327A.07, do not require that written 
        warranty instruments be created and conveyed to the owner. 
           Sec. 127.  Minnesota Statutes 1996, section 345.48, 
        subdivision 1, is amended to read: 
           Subdivision 1.  All funds received under sections 345.31 to 
        345.60, including the proceeds from the sale of abandoned 
        property pursuant to section 345.47, shall forthwith be 
        deposited by the commissioner in the general fund of the state 
        after deduction of the fees and expenses provided for in section 
        345.485; except that unclaimed restitution payments held by a 
        court under section 345.38 shall be deposited in the crime 
        victim and witness account created in section 609.101, 
        subdivision 1 611A.612.  Before making the deposit the 
        commissioner shall record the name and last known address of 
        each person appearing from the holders' reports to be entitled 
        to the abandoned property and of the name and last known address 
        of each policyholder, insured person, or annuitant, and with 
        respect to each policy or contract listed in the report of a 
        life insurance corporation, its number, the name of the 
        corporation, and the amount due.  The record shall be available 
        for public inspection at all reasonable business hours. 
           Sec. 128.  Minnesota Statutes 1996, section 349.19, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [TAX REFUND AND CREDIT ACCOUNT.] (a) Each 
        organization that receives a refund or credit under section 
        297E.02, subdivision 4, paragraph (d), must establish a separate 
        account designated as the tax and credit refund account.  The 
        organization must (1) within four business days of receiving a 
        refund under that paragraph deposit the refund in the account, 
        and (2) within four business days of filing a tax return that 
        claims a credit under that paragraph, transfer from the separate 
        account established under subdivision 2 to the tax refund and 
        credit account an amount equal to the tax credit. 
           (b) The name and address of the bank, the account number 
        for the tax refund and credit account, and the names of 
        organization members authorized as signatories on the account 
        must be provided to the board within 30 days of the date when 
        the organization establishes the account.  Changes in the 
        information must be submitted to the board at least ten days 
        before the change is made. 
           (c) The organization may expend money in the account only 
        for lawful purposes, other than lawful purposes described in 
        section 349.012 349.12, subdivision 25, paragraph (a), clauses 
        (8), (9), and (12).  Amounts in the account must be spent for 
        qualifying lawful purposes no later than one year after the 
        refund is deposited. 
           Sec. 129.  Minnesota Statutes 1996, section 353.64, 
        subdivision 2, is amended to read: 
           Subd. 2.  Before a governing body may declare a position to 
        be that of a police officer, the duties of the person so 
        employed must, as a minimum, include employment as an officer of 
        a designated police department or sheriff's office or person in 
        charge of a designated police department or sheriff's office 
        whose primary job it is to enforce the law, who is licensed by 
        the Minnesota board of peace officer standards and training 
        under sections 626.84 to 626.855 626.863, who is engaged in the 
        hazards of protecting the safety and property of others, and who 
        has the power to arrest by warrant.  A police officer who is 
        periodically assigned to employment duties not within the scope 
        of this subdivision may contribute to the public employees 
        police and fire fund for all service, if a resolution declaring 
        that the primary position held by the person is that of a police 
        officer, is adopted by the governing body of the department, and 
        is promptly submitted to the executive director. 
           Sec. 130.  Minnesota Statutes 1996, section 353C.02, is 
        amended to read: 
           353C.02 [CORRECTIONAL SERVICE EMPLOYEES.] 
           A local government correctional service employee is a 
        person who: 
           (1) meets the definition of "essential employee" in section 
        179A.03, subdivision 7, excluding state employees, University of 
        Minnesota employees, firefighters, peace officers subject to 
        licensure under sections 626.84 to 626.855 626.863, employees of 
        hospitals other than state hospitals, confidential employees, 
        supervisory employees other than employees who supervise 
        correctional officers and who are stationed at correctional 
        facilities or city or county jails, principals, and assistant 
        principals; 
           (2) is employed by Dakota county, Hennepin county, Ramsey 
        county, or Washington county, if the county elects to 
        participate under section 353C.04 or by a joint-powers 
        correctional agency in which St. Louis county or its 
        municipalities participate, if the governing body of the agency 
        elects to participate under section 353C.04; 
           (3) is a public employee within the meaning of section 
        353.01, subdivisions 2 and 2a; and 
           (4) is not at the time of the exercise of the participation 
        option under section 353C.04 a member of the basic program of 
        the public employees retirement association or a member of the 
        public employees police and fire fund. 
           Sec. 131.  Minnesota Statutes 1996, section 354.66, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RETIREMENT CONTRIBUTIONS.] Notwithstanding any 
        provision to the contrary in this chapter relating to the salary 
        figure to be used for the determination of contributions or the 
        accrual of service credit, a teacher assigned to a part-time 
        position under this section shall continue to make employee 
        contributions to and to accrue allowable service credit in the 
        retirement fund during the period of part-time employment on the 
        same basis and in the same amounts as would have been paid and 
        accrued if the teacher had been employed on a full-time basis 
        provided that, prior to June 30 each year, or within 30 days 
        after notification by the association of the amount due, 
        whichever is later, the member and the employing board make that 
        portion of the required employer contribution to the retirement 
        fund, in any proportion which they may agree upon, that is based 
        on the difference between the amount of compensation that would 
        have been paid if the teacher had been employed on a full-time 
        basis and the amount of compensation actually received by the 
        teacher for the services rendered in the part-time assignment.  
        The employing unit shall make that portion of the required 
        employer contributions to the retirement fund on behalf of the 
        teacher that is based on the amount of compensation actually 
        received by the teacher for the services rendered in the 
        part-time assignment in the manner described in section 354.43, 
        subdivision 3.  The employee and employer contributions shall be 
        based upon the rates of contribution prescribed by section 
        354.42.  Full accrual of allowable service credit and employee 
        contributions for part-time teaching service pursuant to this 
        section and section 354A.094 shall not continue for a period 
        longer than ten years. 
           Sec. 132.  Minnesota Statutes 1996, section 383B.78, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REGULATORY ORDINANCES.] (a) The governing bodies 
        of counties having a population of more than 450,000, and all 
        cities and towns located in the counties may, by ordinance, 
        resolution, or bylaw, regulate the use of public bathing beaches 
        and public waters where a public bathing beach immediately 
        borders for the purpose of bathing, swimming, or congregating 
        with others, within their respective territorial limits, in a 
        manner that is not inconsistent with this section.  
           (b) If a governing body determines that the safety, health, 
        morals, or general welfare of the public require, the governing 
        body may, by ordinance, resolution, or bylaw, provide that a 
        public bathing beach is closed to bathing, swimming, and 
        congregating after 9:00 a.m. p.m. 
           Sec. 133.  Minnesota Statutes 1996, section 383D.35, is 
        amended to read: 
           383D.35 [PROTECTION OF RIGHTS UNDER STATE AND FEDERAL 
        LAWS.] 
           Subdivision 1.  Nothing in sections 383D.21 to 383D.34 
        383D.33 shall be construed to permit or encourage any action or 
        conduct prohibited by the Minnesota human rights act or prohibit 
        recourse to any remedies provided in the Minnesota human rights 
        act or any other state or federal law relating to equal 
        employment opportunities.  The provisions of those laws shall 
        continue to apply to county employment generally, including 
        positions excluded from the jurisdiction of the county personnel 
        administration system. 
           Subd. 2.  Nothing in sections 383D.21 to 383D.34 383D.33 
        shall be construed to affect the rights and obligations of an 
        employee or employer under sections 179A.01 to 179A.25, or the 
        provisions of a contract or agreement executed pursuant to them. 
           Subd. 3.  Any employee in the unclassified service may be 
        demoted or removed from the employee's position in the 
        unclassified service without cause and at the discretion and 
        pleasure of the appointing authority, but, unless otherwise 
        provided by law, no permanent county employee, who has 
        successfully completed the employee's probationary period of 
        employment with the county, shall be dismissed from employment 
        with the county without the establishment of just cause.  For 
        purposes of this subdivision, just cause includes, but is not 
        limited to, failure to perform assigned duties, substandard 
        performance, misconduct, insubordination, and violation of 
        written policies and procedures. 
           Sec. 134.  Minnesota Statutes 1996, section 390.35, is 
        amended to read: 
           390.35 [ELECTION TO FOLLOW SIMPLIFIED INVESTIGATION.] 
           Sections 390.31 to 390.35 apply only to counties in which 
        the county board elects to be bound by them in lieu of other law 
        relating to coroners.  In a county in which sections 390.31 to 
        390.35 apply, the county board may by resolution resume death 
        investigations under sections 390.005 to 390.26 390.25.  The 
        board shall then fill the office of coroner as provided by 
        section 390.005. 
           Sec. 135.  Minnesota Statutes 1996, section 412.191, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMPOSITION.] The city council in a 
        standard plan city shall consist of the mayor, the clerk, and 
        the three or five council members.  In optional plan cities, 
        except those cities having a larger council under repealed 
        section 412.023, subdivision 4, the council shall consist of the 
        mayor and the four council members.  A majority of all the 
        members shall constitute a quorum although a smaller number may 
        adjourn from time to time. 
           Sec. 136.  Minnesota Statutes 1996, section 412.581, is 
        amended to read: 
           412.581 [OFFICERS.] 
           In any city operating under Optional Plan A except a city 
        having a larger council under repealed section 412.023, 
        subdivision 4, the council shall be composed of five or seven 
        members consisting, except during the initial period of its 
        operation as provided in section 412.571, of the mayor and four 
        or six council members and, except as provided in that section, 
        the clerk and treasurer or clerk-treasurer shall be appointed by 
        the council for indefinite terms.  
           Sec. 137.  Minnesota Statutes 1996, section 412.631, is 
        amended to read: 
           412.631 [COMPOSITION OF COUNCIL.] 
           In any city operating under Optional Plan B, the council 
        shall, except as provided in sections repealed section 412.023, 
        subdivision 4, and section 412.571, be composed of a mayor and 
        four or six council members. 
           Sec. 138.  Minnesota Statutes 1996, section 422A.01, 
        subdivision 18, is amended to read: 
           Subd. 18.  [LICENSED PEACE OFFICER.] "Licensed peace 
        officer," for purposes of section 422A.151, means an employee of 
        the metropolitan airports commission who was employed by the 
        commission before June 30, 1978, and whose employment duties 
        include, at a minimum, full-time service as an officer whose 
        primary job it is to enforce the law, who is licensed by the 
        Minnesota board of peace officer standards and training under 
        sections 626.84 to 626.855 626.863, who is engaged in the 
        hazards of protecting the safety and property of others, and who 
        has the power to arrest by warrant. 
           Sec. 139.  Minnesota Statutes 1996, section 427.02, is 
        amended to read: 
           427.02 [DEPOSITORIES.] 
           The council of any city in this state, but not including 
        cities when governed under a charter adopted under and pursuant 
        to the Constitution of the state of Minnesota, article IV, 
        section 36, and sections 410.03 to 410.24, and 441.01 to 441.09, 
        and all acts supplemental thereto, in which charter the matter 
        of designating depositories for city funds and the protection 
        thereof is provided for, or in which charter it shall hereafter 
        be provided for, shall have the power and authority to designate 
        or redesignate at the beginning of each calendar year, or from 
        time to time, the banks or other legal depositories of any city 
        in which the treasurer of the city shall deposit and keep the 
        moneys of the city, designating in each instance the maximum 
        amount which may at any time be kept in any one of these 
        depositories, which maximum amount shall in no case exceed 25 
        percent of the paid-up capital and surplus of the depository, 
        unless the depository shall deposit with the treasurer of the 
        city United States government bonds to secure the deposit of the 
        funds of the city; and, in that event, the amount so deposited 
        shall not exceed the amount of the United States government 
        bonds so deposited.  No depository shall deposit United States 
        government bonds which mature within one year from the date such 
        bonds were first considered as a part of the bank's reserve and 
        which reserves are required by section 48.221.  The council of 
        each city shall, at all times, designate depositories in the 
        city, or elsewhere in the United States, sufficient for the 
        depository of all funds which are likely to be in the hands of 
        the treasurer of the city at any one time and shall, so far as 
        consistent with the best interest of the city, designate these 
        depositories in the city and require from these depositories 
        good and sufficient bonds payable to the city in a penal sum not 
        to exceed the amount designated as the limit of deposit therein, 
        and conditioned for the safekeeping and payment of funds so 
        deposited, or, in lieu thereof, good and sufficient collateral 
        as provided for by section 118A.03. 
           Sec. 140.  [REPEALER; SECTIONS 466.01, SUBDIVISIONS 4 AND 
        5.] 
           Minnesota Statutes 1996, section 466.01, subdivisions 4 and 
        5, are repealed. 
           Sec. 141.  Minnesota Statutes 1996, section 466.03, 
        subdivision 6d, is amended to read: 
           Subd. 6d.  [LICENSING OF PROVIDERS.] A claim against a 
        municipality based on the failure of a provider to meet the 
        standards needed for a license to operate a day care facility, 
        as defined in section 245.782, subdivision 5, under chapter 245A 
        for children, unless the municipality had actual knowledge of a 
        failure to meet licensing standards that resulted in a dangerous 
        condition that foreseeably threatened the plaintiff. 
           Sec. 142.  [REPEALER; SECTION 469.033 NOTE.] 
           Laws 1994, chapter 416, article 1, section 47, is repealed. 
           Sec. 143.  Minnesota Statutes 1996, section 469.078, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MAY USE CHAPTER 458 POWERS GRANTED BY 1980 
        LAW.] The city of Minneapolis may exercise those powers of a 
        governmental agency or subdivision in sections 469.048 to 
        469.068 granted to it by Laws 1980, chapter 595. 
           Sec. 144.  [REPEALER; SECTION 469.121 NOTE.] 
           Laws 1989, chapter 209, article 2, section 42, is repealed. 
           Sec. 145.  Minnesota Statutes 1996, section 469.141, 
        subdivision 3, is amended to read: 
           Subd. 3.  [WATER WELL REGULATION.] Cities may prohibit, 
        restrict, control, and require permits for drilling of water 
        wells as defined in section 156A.02 103I.005, but the 
        construction and abandonment of water wells is governed 
        by sections 156A.01 to 156A.10 chapter 103I. 
           Sec. 146.  Minnesota Statutes 1996, section 469.173, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REPEALER APPLICATION.] Sections 469.169, 
        469.171, 469.172, and this section are effective remain in 
        effect only for border city enterprise zones and only until the 
        enterprise zone is terminated by resolution adopted by the city 
        in which the border city enterprise zone is located.  For all 
        other enterprise zones, sections 469.169, 469.171, 469.172, and 
        this section are repealed effective no longer in effect after 
        December 31, 1996. 
           Sec. 147.  Minnesota Statutes 1996, section 471.9981, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [1988 REPORT.] A home rule charter or 
        statutory city or county, referred to in this section as a 
        "governmental subdivision," that employs ten or more people and 
        that did not submit a report according to repealed section 
        471.998, shall submit the report by October 1, 1988, to the 
        commissioner of employee relations. 
           The plan for implementing equitable compensation for the 
        employees must provide for complete implementation not later 
        than December 31, 1991, unless a later date has been approved by 
        the commissioner.  If a report was filed before October 1, 1987, 
        and had an implementation date after December 31, 1991, the date 
        in the report shall be approved by the commissioner.  The plan 
        need not contain a market study. 
           Sec. 148.  [REPEALER; SECTION 471A.02, SUBDIVISIONS 2 AND 
        15.] 
           Minnesota Statutes 1996, section 471A.02, subdivisions 2 
        and 15, are repealed. 
           Sec. 149.  [REPEALER; SECTION 473.13 NOTE.] 
           Laws 1994, chapter 416, article 1, section 51, is repealed. 
           Sec. 150.  Minnesota Statutes 1996, section 473.206, is 
        amended to read: 
           473.206 [LOCAL ORDINANCES.] 
           Each county, city or town in the metropolitan area shall be 
        provided with standards, criteria and suggested model ordinances 
        and may, after review and comment by the metropolitan council, 
        adopt ordinances which provide for the protection of the 
        resources described in section 473.204 that are the subject of 
        the standards, criteria, and model ordinances. 
           Sec. 151.  Minnesota Statutes 1996, section 473.208, is 
        amended to read: 
           473.208 [COOPERATION.] 
           In adopting and enforcing the ordinances for which 
        standards and criteria are provided by sections 473.204 to 
        473.208 section 473.206, counties, cities and towns shall 
        consult and cooperate with affected soil and water conservation 
        districts, watershed districts, and lake conservation districts 
        on matters of common concern. 
           Sec. 152.  [REPEALER; SECTION 473.445 NOTE.] 
           Laws 1994, chapter 411, section 4, is repealed. 
           Sec. 153.  [REPEALER; SECTION 473.638, SUBDIVISION 1.] 
           Minnesota Statutes 1996, section 473.638, subdivision 1, is 
        repealed. 
           Sec. 154.  Minnesota Statutes 1996, section 473.638, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RETENTION OR SALE OF PROPERTY.] The commission 
        may retain any property now owned by it or acquired under 
        subdivision 1 and use it for a lawful purpose, or it may provide 
        for the sale or other disposition of the property in accordance 
        with a redevelopment plan in the same manner and upon the same 
        terms as the housing and redevelopment authority and governing 
        body of a municipality under the provisions of section 469.029, 
        all subject to the provisions of section 473.636, subdivision 2, 
        or to existing land use and development control measures 
        approved by the council. 
           Sec. 155.  [REPEALER; SECTION 473.639.] 
           Minnesota Statutes 1996, section 473.639, is repealed. 
           Sec. 156.  [REPEALER; SECTION 473.711 NOTE.] 
           Laws 1994, chapter 416, article 1, section 56, is repealed. 
           Sec. 157.  Minnesota Statutes 1996, section 473.859, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LAND USE PLAN.] A land use plan shall include 
        the water management plan required by section 103B.235, and 
        shall designate the existing and proposed location, intensity 
        and extent of use of land and water, including lakes, wetlands, 
        rivers, streams, natural drainage courses, and adjoining land 
        areas that affect water natural resources, for agricultural, 
        residential, commercial, industrial and other public and private 
        purposes, or any combination of such purposes.  A land use plan 
        shall contain a protection element, as appropriate, for historic 
        sites, the matters listed in the water management plan required 
        by section 103B.235, and the matters listed in section 473.204, 
        and an element for protection and development of access to 
        direct sunlight for solar energy systems.  A land use plan shall 
        also include a housing element containing standards, plans and 
        programs for providing adequate housing opportunities to meet 
        existing and projected local and regional housing needs, 
        including but not limited to the use of official controls and 
        land use planning to promote the availability of land for the 
        development of low and moderate income housing. 
           Sec. 158.  Minnesota Statutes 1996, section 475.51, 
        subdivision 9, is amended to read: 
           Subd. 9.  [GOVERNING BODY.] "Governing body" means the 
        board, council, commission, or other body of the municipality 
        charged with the general control of its financial affairs; 
        provided, that where any charter or law confers bond issuing 
        power on a particular board or body of a municipality, such 
        board or body is the governing body under the provisions of 
        sections 475.51 to 475.75 475.74. 
           Sec. 159.  Minnesota Statutes 1996, section 475.53, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERALLY.] Except as otherwise provided 
        in sections 475.51 to 475.75 475.74, no municipality, except a 
        school district or a city of the first class, shall incur or be 
        subject to a net debt in excess of two percent of the market 
        value of taxable property in the municipality. 
           Sec. 160.  Minnesota Statutes 1996, section 475.57, is 
        amended to read: 
           475.57 [INITIATION OF PROCEEDINGS; RESOLUTION.] 
           Proceedings for issuing bonds under sections 475.51 to 
        475.75 475.74 shall be initiated by a resolution of the 
        governing body of the municipality stating the amount proposed 
        to be borrowed and the purpose for which the debt is to be 
        incurred.  Such resolution may provide for the submission of the 
        question to vote of the electors.  A town board may adopt such 
        resolution without a statement for special town meeting being 
        filed with the clerk.  
           Sec. 161.  Minnesota Statutes 1996, section 475.61, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FILING; CERTIFICATION; ASSESSMENT; EXTENSION.] 
        The recording officer of the municipality shall file in the 
        office of the county auditor of each county in which any part of 
        the municipality is located a certified copy of the resolution, 
        together with full information regarding the obligations for 
        which the tax is levied.  No further action by the municipality 
        is required to authorize the extension, assessment and 
        collection of the tax, but the municipality's liability on the 
        obligations is not limited thereto and its governing body shall 
        levy and cause to be extended, assessed and collected any 
        additional taxes found necessary for full payment of the 
        principal and interest.  The county auditor shall forthwith 
        certify to the municipality that the obligations have been 
        entered in the register required by sections 475.51 to 475.75 
        475.74 and that the tax levy required by sections 475.51 
        to 475.75 475.74 has been made.  The auditor shall annually 
        assess and extend upon the tax rolls the amount specified for 
        such year in the resolution, unless the amount has been reduced 
        as authorized below or, if the municipality is located in more 
        than one county, the portion thereof which bears the same ratio 
        to the whole amount as the net tax capacity of taxable property 
        in that part of the municipality located in the auditor's county 
        bears to the net tax capacity of all taxable property in the 
        municipality. 
           Sec. 162.  Minnesota Statutes 1996, section 480.242, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REVIEW OF APPLICATIONS; SELECTION OF 
        RECIPIENTS.] At times and in accordance with any procedures as 
        the supreme court adopts in the form of court rules, 
        applications for the expenditure of civil legal services funds 
        shall be accepted from qualified legal services programs or from 
        local government agencies and nonprofit organizations seeking to 
        establish qualified alternative dispute resolution programs.  
        The applications shall be reviewed by the advisory committee, 
        and the advisory committee, subject to review by the supreme 
        court, shall distribute the funds received pursuant to section 
        480.241, subdivision 2, available for this expenditure to 
        qualified legal services programs or to qualified alternative 
        dispute resolution programs submitting applications.  The funds 
        shall be distributed in accordance with the following formula:  
           (a) Eighty-five percent of the funds distributed shall be 
        distributed to qualified legal services programs that have 
        demonstrated an ability as of July 1, 1982, to provide legal 
        services to persons unable to afford private counsel with funds 
        provided by the federal Legal Services Corporation.  The 
        allocation of funds among the programs selected shall be based 
        upon the number of persons with incomes below the poverty level 
        established by the United States Census Bureau who reside in the 
        geographical area served by each program, as determined by the 
        supreme court on the basis of the most recent national census.  
        All funds distributed pursuant to this clause shall be used for 
        the provision of legal services in civil and farm legal 
        assistance matters as prioritized by program boards of directors 
        to eligible clients. 
           (b) Fifteen percent of the funds distributed may be 
        distributed (1) to other qualified legal services programs for 
        the provision of legal services in civil matters to eligible 
        clients, including programs which organize members of the 
        private bar to perform services and programs for qualified 
        alternative dispute resolution, (2) to programs for training 
        mediators operated by nonprofit alternative dispute resolution 
        corporations, or (3) to qualified legal services programs to 
        provide family farm legal assistance for financially distressed 
        state farmers.  The family farm legal assistance must be 
        directed at farm financial problems including, but not limited 
        to, liquidation of farm property including bankruptcy, farm 
        foreclosure, repossession of farm assets, restructuring or 
        discharge of farm debt, farm credit and general debtor-creditor 
        relations, and tax considerations.  If all the funds to be 
        distributed pursuant to this clause cannot be distributed 
        because of insufficient acceptable applications, the remaining 
        funds shall be distributed pursuant to clause (a). 
           A person is eligible for legal assistance under this 
        section if the person is an eligible client as defined in 
        section 480.24, subdivision 2, or: 
           (1) is a state resident; 
           (2) is or has been a farmer or a family shareholder of a 
        family farm corporation within the preceding 24 months; 
           (3) has a debt-to-asset ratio greater than 50 percent; 
           (4) has a reportable federal adjusted gross income of 
        $15,000 or less in the previous year; and 
           (5) is financially unable to retain legal representation. 
           Qualifying farmers and small business operators whose bank 
        loans are held by the Federal Deposit Insurance Corporation are 
        eligible for legal assistance under this section. 
           Sec. 163.  Minnesota Statutes 1996, section 500.24, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CORPORATE FARMING, AG LAND OWNERSHIP 
        RESTRICTED.] No corporation, limited liability company, pension 
        or investment fund, or limited partnership shall engage in 
        farming; nor shall any corporation, limited liability company, 
        pension or investment fund, or limited partnership, directly or 
        indirectly, own, acquire, or otherwise obtain an interest, 
        whether legal, beneficial or otherwise, in any title to real 
        estate used for farming or capable of being used for farming in 
        this state.  Livestock that are delivered for slaughter or 
        processing may be fed and cared for by a corporation up to 20 
        days prior to slaughter or processing.  Provided, however, that 
        the restrictions in this subdivision do not apply to 
        corporations or partnerships in clause (b) and do not apply to 
        corporations, limited partnerships, and pension or investment 
        funds that record its name and the particular exception under 
        clauses (a) to (s) (r) under which the agricultural land is 
        owned or farmed, have a conservation plan prepared for the 
        agricultural land, report as required under subdivision 4, and 
        satisfy one of the following conditions under clauses (a) 
        to (s) (r): 
           (a) a bona fide encumbrance taken for purposes of security; 
           (b) a family farm corporation, an authorized farm 
        corporation, a family farm partnership, or an authorized farm 
        partnership as defined in subdivision 2 or a general 
        partnership; 
           (c) agricultural land and land capable of being used for 
        farming owned by a corporation as of May 20, 1973, or a pension 
        or investment fund as of May 12, 1981, including the normal 
        expansion of such ownership at a rate not to exceed 20 percent 
        of the amount of land owned as of May 20, 1973, or, in the case 
        of a pension or investment fund, as of May 12, 1981, measured in 
        acres, in any five-year period, and including additional 
        ownership reasonably necessary to meet the requirements of 
        pollution control rules; 
           (d) agricultural land operated for research or experimental 
        purposes with the approval of the commissioner of agriculture, 
        provided that any commercial sales from the operation must be 
        incidental to the research or experimental objectives of the 
        corporation.  A corporation, limited partnership, or pension or 
        investment fund seeking to operate agricultural land for 
        research or experimental purposes must submit to the 
        commissioner a prospectus or proposal of the intended method of 
        operation, containing information required by the commissioner 
        including a copy of any operational contract with individual 
        participants, prior to initial approval of an operation.  A 
        corporation, limited partnership, or pension or investment fund 
        operating agricultural land for research or experimental 
        purposes prior to May 1, 1988, must comply with all requirements 
        of this clause except the requirement for initial approval of 
        the project; 
           (e) agricultural land operated by a corporation or limited 
        partnership for the purpose of raising breeding stock, including 
        embryos, for resale to farmers or operated for the purpose of 
        growing seed, wild rice, nursery plants or sod.  An entity that 
        is organized to raise livestock other than dairy cattle under 
        this clause that does not meet the definition requirement for an 
        authorized farm corporation must: 
           (1) sell all castrated animals to be fed out or finished to 
        farming operations that are neither directly nor indirectly 
        owned by the business entity operating the breeding stock 
        operation; and 
           (2) report its total production and sales annually to the 
        commissioner of agriculture; 
           (f) agricultural land and land capable of being used for 
        farming leased by a corporation or limited partnership in an 
        amount, measured in acres, not to exceed the acreage under lease 
        to such corporation as of May 20, 1973, or to the limited 
        partnership as of May 1, 1988, and the additional acreage 
        required for normal expansion at a rate not to exceed 20 percent 
        of the amount of land leased as of May 20, 1973, for a 
        corporation or May 1, 1988, for a limited partnership in any 
        five-year period, and the additional acreage reasonably 
        necessary to meet the requirements of pollution control rules; 
           (g) agricultural land when acquired as a gift (either by 
        grant or a devise) by an educational, religious, or charitable 
        nonprofit corporation or by a pension or investment fund or 
        limited partnership; provided that all lands so acquired by a 
        pension or investment fund, and all lands so acquired by a 
        corporation or limited partnership which are not operated for 
        research or experimental purposes, or are not operated for the 
        purpose of raising breeding stock for resale to farmers or 
        operated for the purpose of growing seed, wild rice, nursery 
        plants or sod must be disposed of within ten years after 
        acquiring title thereto; 
           (h) agricultural land acquired by a pension or investment 
        fund or a corporation other than a family farm corporation or 
        authorized farm corporation, as defined in subdivision 2, or a 
        limited partnership other than a family farm partnership or 
        authorized farm partnership as defined in subdivision 2, for 
        which the corporation or limited partnership has documented 
        plans to use and subsequently uses the land within six years 
        from the date of purchase for a specific nonfarming purpose, or 
        if the land is zoned nonagricultural, or if the land is located 
        within an incorporated area.  A pension or investment fund or a 
        corporation or limited partnership may hold such agricultural 
        land in such acreage as may be necessary to its nonfarm business 
        operation; provided, however, that pending the development of 
        agricultural land for nonfarm purposes, such land may not be 
        used for farming except under lease to a family farm unit, a 
        family farm corporation, an authorized farm corporation, a 
        family farm partnership, or an authorized farm partnership, or 
        except when controlled through ownership, options, leaseholds, 
        or other agreements by a corporation which has entered into an 
        agreement with the United States of America pursuant to the New 
        Community Act of 1968 (Title IV of the Housing and Urban 
        Development Act of 1968, United States Code, title 42, sections 
        3901 to 3914) as amended, or a subsidiary or assign of such a 
        corporation; 
           (i) agricultural lands acquired by a pension or investment 
        fund or a corporation or limited partnership 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; provided, however, that all lands so 
        acquired be disposed of within ten years after acquiring the 
        title if acquired before May 1, 1988, and five years after 
        acquiring the title if acquired on or after May 1, 1988, 
        acquiring the title thereto, and further provided that the land 
        so acquired shall not be used for farming during the ten-year or 
        five-year period except under a lease to a family farm unit, a 
        family farm corporation, an authorized farm corporation, a 
        family farm partnership, or an authorized farm partnership.  The 
        aforementioned ten-year or five-year limitation period shall be 
        deemed a covenant running with the title to the land against any 
        grantee, assignee, or successor of the pension or investment 
        fund, corporation, or limited partnership.  Notwithstanding the 
        five-year divestiture requirement under this clause, a financial 
        institution may continue to own the agricultural land if the 
        agricultural land is leased to the immediately preceding former 
        owner, but must divest of the agricultural land within the 
        ten-year period.  Livestock acquired by a pension or investment 
        fund, corporation, or limited partnership in the collection of 
        debts, or by a procedure for the enforcement of lien or claim on 
        the livestock whether created by security agreement or otherwise 
        after August 1, 1994, must be sold or disposed of within one 
        full production cycle for the type of livestock acquired or 18 
        months after the livestock is acquired, whichever is later; 
           (j) agricultural land acquired by a corporation regulated 
        under the provisions of Minnesota Statutes 1974, chapter 216B, 
        for purposes described in that chapter or by an electric 
        generation or transmission cooperative for use in its business, 
        provided, however, that such land may not be used for farming 
        except under lease to a family farm unit, a family farm 
        corporation, or a family farm partnership; 
           (k) agricultural land, either leased or owned, totaling no 
        more than 2,700 acres, acquired after May 20, 1973, for the 
        purpose of replacing or expanding asparagus growing operations, 
        provided that such corporation had established 2,000 acres of 
        asparagus production; 
           (l) all agricultural land or land capable of being used for 
        farming which was owned or leased by an authorized farm 
        corporation as defined in Minnesota Statutes 1974, section 
        500.24, subdivision 1, clause (d), but which does not qualify as 
        an authorized farm corporation as defined in subdivision 2, 
        clause (d); 
           (m) a corporation formed primarily for religious purposes 
        whose sole income is derived from agriculture; 
           (n) agricultural land owned or leased by a corporation 
        prior to August 1, 1975, which was exempted from the restriction 
        of this subdivision under the provisions of Laws 1973, chapter 
        427, including normal expansion of such ownership or leasehold 
        interest to be exercised at a rate not to exceed 20 percent of 
        the amount of land owned or leased on August 1, 1975, in any 
        five-year period and the additional ownership reasonably 
        necessary to meet requirements of pollution control rules; 
           (o) agricultural land owned or leased by a corporation 
        prior to August 1, 1978, including normal expansion of such 
        ownership or leasehold interest, to be exercised at a rate not 
        to exceed 20 percent of the amount of land owned or leased on 
        August 1, 1978, and the additional ownership reasonably 
        necessary to meet requirements of pollution control rules, 
        provided that nothing herein shall reduce any exemption 
        contained under the provisions of Laws 1975, chapter 324, 
        section 1, subdivision 2; 
           (p) an interest in the title to agricultural land acquired 
        by a pension fund or family trust established by the owners of a 
        family farm, authorized farm corporation or family farm 
        corporation, but limited to the farm on which one or more of 
        those owners or shareholders have resided or have been actively 
        engaged in farming as required by subdivision 2, clause (b), 
        (c), or (d); 
           (q) agricultural land owned by a nursing home located in a 
        city with a population, according to the state demographer's 
        1985 estimate, between 900 and 1,000, in a county with a 
        population, according to the state demographer's 1985 estimate, 
        between 18,000 and 19,000, if the land was given to the nursing 
        home as a gift with the expectation that it would not be sold 
        during the donor's lifetime.  This exemption is available until 
        July 1, 1995; 
           (r) the acreage of agricultural land and land capable of 
        being used for farming owned and recorded by an authorized farm 
        corporation as defined in Minnesota Statutes 1986, section 
        500.24, subdivision 2, paragraph (d), or a limited partnership 
        as of May 1, 1988, including the normal expansion of the 
        ownership at a rate not to exceed 20 percent of the land owned 
        and recorded as of May 1, 1988, measured in acres, in any 
        five-year period, and including additional ownership reasonably 
        necessary to meet the requirements of pollution control 
        rules; or 
           (s) (r) agricultural land owned or leased as a necessary 
        part of an aquatic farm as defined in section 17.47, subdivision 
        3. 
           Sec. 164.  Minnesota Statutes 1996, section 508A.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEFINITION.] For the purposes of sections 
        508A.01 to 508A.85, the term "possessory estate in land" means a 
        fee simple estate held by an owner who (1) has been found on 
        examination by the examiner of titles pursuant to section 
        508A.13 to be the record owner of the land described; and (2) 
        has satisfied the examiner of titles that the owner is in actual 
        or constructive possession of the land described. 
           Sec. 165.  Minnesota Statutes 1996, section 524.2-402, is 
        amended to read: 
           524.2-402 [DESCENT OF HOMESTEAD.] 
           (a) If there is a surviving spouse, the homestead, 
        including a manufactured home which is the family residence, 
        descends free from any testamentary or other disposition of it 
        to which the spouse has not consented in writing or as provided 
        by law, as follows: 
           (1) if there is no surviving descendant of decedent, to the 
        spouse; or 
           (2) if there are surviving descendants of decedent, then to 
        the spouse for the term of the spouse's natural life and the 
        remainder in equal shares to the decedent's descendants by 
        representation. 
           (b) If there is no surviving spouse and the homestead has 
        not been disposed of by will it descends as other real estate. 
           (c) If the homestead passes by descent or will to the 
        spouse or decedent's descendants, it is exempt from all debts 
        which were not valid charges on it at the time of decedent's 
        death except that the homestead is subject to a claim filed 
        pursuant to section 246.53 for state hospital care or 256B.15 
        for medical assistance benefits.  If the homestead passes to a 
        person other than a spouse or decedent's descendants, it is 
        subject to the payment of the items mentioned in section 
        524.2-101 the expenses of administration, funeral expenses, 
        expenses of last illness, taxes, and debts.  No lien or other 
        charge against a homestead so exempted is enforceable in the 
        probate court, but the claimant may enforce the lien or charge 
        by an appropriate action in the district court. 
           (d) For purposes of this section, except as provided in 
        section 524.2-301, the surviving spouse is deemed to consent to 
        any testamentary or other disposition of the homestead to which 
        the spouse has not previously consented in writing unless the 
        spouse files in the manner provided in section 524.2-211, 
        paragraph (f), a petition that asserts the homestead rights 
        provided to the spouse by this section. 
           Sec. 166.  Minnesota Statutes 1996, section 525.152, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) "Eligible child" means a 
        child of the decedent who: 
           (1) is not the child of the surviving spouse, if any; 
           (2) if there is no surviving spouse, is not a minor, and 
        has a different parent than minor children of the decedent who 
        are entitled to an allowance selection under section 525.15, 
        clause (3); and 
           (3) if the decedent dies testate, is a devisee under the 
        decedent's will. 
           (b) "Sentimental value" means significant emotional or 
        nostalgic value arising out of the relationship of an individual 
        with the decedent or arising out of the relationship of the 
        eligible child with the individual who is the nondecedent parent 
        of the eligible child. 
           Sec. 167.  Minnesota Statutes 1996, section 525.152, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INELIGIBLE PROPERTY.] The following property is 
        not eligible for an award under this section: 
           (1) real property; 
           (2) personal property that is the subject of a specific 
        devise under the decedent's will where the will was executed 
        before August 1, 1989, and where the devise specifically 
        identifies the particular item of property, unless the property 
        is selected under section 525.151 524.2-403; 
           (3) personal property that is the subject of a specific 
        devise under a separate writing under section 524.2-513, unless 
        the property is selected under section 525.151 524.2-403; and 
           (4) personal property disposed of by a premarital agreement.
           Sec. 168.  Minnesota Statutes 1996, section 525.152, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NOTICE TO ELIGIBLE CHILDREN; PETITION.] At the 
        time of an allowance selection under section 525.151 524.2-403, 
        the person making the selection shall serve personally or by 
        mail a written itemized notice of the property selected to every 
        eligible child of the decedent.  This requirement does not apply 
        if an award of property with sentimental value already has been 
        made under this section.  Within 30 days of receipt of the 
        notice of selection, an eligible child may petition the court to 
        award property with sentimental value contained in the notice, 
        or other property with sentimental value that belonged to the 
        decedent, to the eligible child. 
           Sec. 169.  [REVISOR'S INSTRUCTION; SECTIONS 626.843 TO 
        626.88.] 
           The revisor shall change the citation from section 626.855 
        to section 626.863 in the following sections of Minnesota 
        Statutes:  626.843; 626.845; 626.846; 626.847; 626.851; and 
        626.88. 
           Sec. 170.  Laws 1995, chapter 220, section 7, subdivision 
        3, is amended to read: 
        Subd. 3.  Promotion and Marketing 
             1,146,000      1,146,000
                       Summary by Fund
        General                954,000      954,000
        Special Revenue        192,000      192,000
        Notwithstanding Minnesota Statutes, 
        section 41A.09, subdivision 3 3a, the 
        total payments from the ethanol 
        development account to all producers 
        may not exceed $25,000,000 for the 
        biennium ending June 30, 1997.  If the 
        total amount for which all producers 
        are eligible in a quarter exceeds the 
        amount available for payments, the 
        commissioner shall make the payments on 
        a pro rata basis. 
        $100,000 the first year and $100,000 
        the second year are for ethanol 
        promotion and public education. 
        $100,000 the first year and $100,000 
        the second year must be spent for the 
        WIC coupon program. 
        $71,000 the first year and $71,000 the 
        second year are for transfer to the 
        Minnesota grown matching account and 
        may be used as grants for Minnesota 
        grown promotion under Minnesota 
        Statutes, section 17.109. 
        $192,000 the first year and $192,000 
        the second year are from the 
        commodities research and promotion 
        account in the special revenue fund. 
           Sec. 171.  Laws 1996, chapter 310, section 1, is amended to 
        read: 
           Section 1.  [REPEALER.] 
           Minnesota Statutes 1994, sections 1.17; 1.25; 1.331; 3.85, 
        subdivision 7; 4.02; 4.45; 6.26; 10.05; 10.38; 15.07; 15.09; 
        15.14; 15.15; 15.793; 15A.083, subdivisions 2 and 3; 15A.15; 
        17.14, subdivision 2; 17.351, subdivision 2; 17.47, subdivision 
        5; 17.53, subdivisions 4 and 11; 17.693, subdivisions 3 and 7; 
        17.81, subdivision 6; 17.981; 17A.03, subdivision 4; 18.46, 
        subdivision 14; 18.58; 18.77, subdivision 2; 18B.01, subdivision 
        16; 18B.065, subdivision 6; 18B.08, subdivision 5; 18C.105; 
        18C.531, subdivisions 6, 11, 19, 20, and 27; 19.50, subdivision 
        16; 19.64, subdivision 5; 21.72, subdivision 2; 21.81, 
        subdivision 18; 24.135, subdivisions 6 and 7; 24.165; 25.33, 
        subdivision 2; 25.44; 25.46; 27.01, subdivisions 1, 3, 6, and 
        and 9; 27.137, subdivisions 2, 3, 4, 6, and 8; 27.15; 29.21, 
        subdivision 2; 30.01, subdivision 2; 31.51, subdivisions 10 and 
        12; 31.782, subdivision 2; 31.92, subdivision 1a; 31A.02, 
        subdivision 3; 31A.30; 32.01, subdivisions 3 and 4; 32.077; 
        32.101; 32.201; 32.205; 32.207; 32.398, subdivision 2; 32.401, 
        subdivision 4; 32.411, subdivision 6; 32.471, subdivision 2; 
        32.485; 32.531, subdivisions 2, 3, and 4; 35.01, subdivision 4; 
        35.73, subdivision 3; 42.02, subdivision 2; 42.06, subdivision 
        4; 42.09, subdivision 3; 43A.082; 43A.27, subdivision 6; 
        43A.317, subdivision 11; 43A.47; 47.202; 62D.12, subdivision 12; 
        84.024; 84.083, subdivision 2; 87.01; 89.013; 89.014; 90.005, 
        subdivisions 1, 4, and 5; 115A.06, subdivision 4; 115A.08; 
        115A.09; 115A.14, subdivisions 1, 2, and 3; 115A.201; 115A.21; 
        115A.22; 115A.241; 115A.25; 115A.26; 115A.27; 115A.28, 
        subdivision 1; 115A.29; 115A.291; 115A.97, subdivision 4; 
        116J.974; 116J.981; 116J.986; 118.02; 118.08; 119.04, 
        subdivision 4; 124B.02; 124B.10; 124B.20, subdivisions 2 and 3; 
        136A.179; 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 
        137.14; 137.15; 137.33; 137.34, subdivision 2; 141.33; 141.34; 
        148B.34; 152.151; 161.041; 161.086; 166.01; 166.02; 166.03; 
        166.05; 166.06; 166.07; 166.08; 166.09; 166.10; 169.72, 
        subdivision 3; 175.001, subdivision 5; 175.002; 175.003; 
        175.004; 175.005; 175.006, subdivision 4; 175.34; 176.1011; 
        177.34; 186.01; 186.02; 186.03; 186.04; 186.05; 186.06; 186.07; 
        186.08; 190.10; 191.09; 193.145, subdivision 1; 196.06, 
        subdivision 2; 196.10; 196.11; 196.14; 196.15; 197.971; 197.972; 
        197.973; 197.974; 197.975; 197.976; 197.977; 197.978; 197.979; 
        197.98; 197.981; 197.982; 197.983; 197.984; 197.985; 197.986; 
        198.002, subdivision 4; 202A.17; 216C.19, subdivisions 10, 11, 
        and 12; 216C.21; 216C.22; 216C.23; 216C.24; 246.44; 246.45; 
        246.46; 251.011, subdivisions 1, 4, 4a, 7, and 8; 254.02; 
        256B.56; 256B.57; 256B.58; 256B.59; 256B.60; 256B.61; 256B.62; 
        256B.63; 256E.07, subdivision 1a; 256E.08, subdivision 9; 
        261.251; 275.064; 280.12; 280.13; 280.25; 280.26; 281.15; 
        281.26; 281.27; 295.01; 298.226; 298.244; 299D.01, subdivision 
        5; 299F.01, subdivision 3; 345.20, subdivision 6; 352B.265; 
        353.011; 367.411; 367.43; 373.013; 373.045; 374.03; 374.04; 
        374.06; 374.07; 374.22; 374.23; 375.24; 375.383; 375.435; 
        377.01; 377.03; 377.05; 383A.07, subdivisions 11, 21, 22, and 
        25; 383A.09; 383A.10; 383A.15; 383A.34; 383A.44; 383B.227; 
        383B.233; 383B.69; 383C.054; 383C.057; 383C.058; 383D.15; 
        383D.34; 383D.67; 386.375, subdivision 6; 388.19, subdivision 2; 
        390.26; 397.05; 397.06; 397.07; 397.08; 397.09; 397.10; 397.101; 
        397.102; 412.015, subdivision 1; 412.018, subdivision 2; 
        412.023, subdivision 4; 412.092; 441.01; 441.02; 441.03; 441.04; 
        441.05; 441.06; 441.07; 441.08; 441.09; 446A.10; 457.13; 
        458.1931; 458D.13; 465.681; 466.10; 466.12, subdivision 4; 
        471.74, subdivisions 1 and 3; 471.9975; 471.998; 471A.07; 
        473.204; 473.418; 473.608, subdivision 20; 473.855; 474.22; 
        475.75; 477A.011, subdivision 2; 477A.012, subdivisions 1, 3, 4, 
        7, and 8; 477A.013, subdivision 6; 477A.014, subdivision 1a; 
        487.12; 515B.1-110; 515B.1-111; 557.022; 611A.07, subdivision 2; 
        611A.23; 611A.42; 611A.44; 626.559, subdivision 4; 626.563, as 
        amended by Laws 1995, chapter 259, article 3, section 22; 
        626.855; and 641.111; Minnesota Statutes 1995 Supplement, 
        sections 17A.091, subdivision 2; 115A.14, subdivision 4; 
        124B.01; 124B.03; 124B.20, subdivision 1; 135A.10, subdivision 
        1; 136A.043; 471.74, subdivision 2; 474.191; 477A.012, 
        subdivision 2, are repealed. 
                                   ARTICLE 2 
                               ABOLISHED REPORTS 
                                     PART A 
           Section 1.  [IMPLEMENTING LAWS 1995, CHAPTER 248, ARTICLE 
        1.] 
           Subdivision 1.  [INTENT.] This article implements Laws 
        1995, chapter 248, article 1, by 
           (1) conforming Minnesota Statutes, beginning in section 2, 
        to reflect the abolition of certain reporting requirements; 
           (2) listing, in subdivision 2, statutory citations to 
        reporting requirements retained by notification to the revisor 
        from committee chairs; 
           (3) listing, in subdivision 3, statutory citations to 
        reporting requirements which were, in 1995 or 1996, repealed, 
        stricken, or amended in a way suggesting continuation; 
           (4) listing, in subdivision 4, the status of all sections 
        in the original report not otherwise accounted for; and 
           (5) drafting conforming amendments in part B to account for 
        repeals listed in section 67. 
           Subd. 2.  [REPORTS RETAINED BY COMMITTEE CHAIRS.] The 
        reporting requirements in these statutes were retained by 
        notification to the revisor from committee chairs:  3.30, 
        subdivision 2; 3.885, subdivision 5; 10.48; 69.051, subdivision 
        4; 84.154, subdivisions 4 and 5; 84B.11, subdivision 2; 115A.38, 
        subdivision 3; 116P.05, subdivision 2; 116P.06, subdivision 2; 
        121.81; 134.22; 135A.20; 240.18, subdivision 2; 270.74; 
        462A.207, subdivision 8; 473.123, subdivision 3; and 473.303.  
           Subd. 3.  [REPORTS REPEALED, STRICKEN, OR RETAINED BY 
        AMENDMENT.] (a) Reporting requirements in these statutes 
        requiring periodic reports were repealed or stricken by 
        amendment in 1995 or 1996:  3.846; 3.861; 3.863; 3.885, 
        subdivision 1a; 3.9227; 14.115; 14.12; 14.32; 62N.34; 85.019; 
        103B.255, subdivision 9; 115A.165; 115A.551, subdivision 4 
        (report from metropolitan council); 116C.69, subdivision 3; 
        121.703, subdivision 3; 121.710, subdivision 2; 121.931, 
        subdivisions 3 and 4; 125.05, subdivision 7; 126.019, 
        subdivision 2; 126B.02; 135A.09; 136.142; 136.41; 136.507; 
        136A.02, subdivision 6; 136A.04, subdivision 1; 136A.041; 
        136A.42; 136A.86, subdivision 2; 136E.04, subdivision 3; 137.38, 
        subdivision 5; 144.874; 144.878; 144A.31, subdivision 5; 
        148C.035, subdivision 2; 168.33, subdivision 5; 245.494, 
        subdivision 2; 245.98, subdivision 3; 256.734, subdivision 3; 
        256B.0925, subdivision 3; and 393.07, subdivision 10 (note).  
           (b) Reporting requirements in these statutes were amended 
        in 1995 or 1996 in a way that did not indicate a clear intent to 
        abolish the reporting requirement:  13.06, subdivision 7; 14.08; 
        16B.75 (the report in article IX was mistakenly indicated as 
        being in article IV in the initial report); 144.05; 256C.28, 
        subdivisions 3, now 3a; and 6; and 299C.065, subdivisions 3 and 
        3a. 
           Subd. 4.  [OTHER.] (a) The reporting requirement in section 
        115A.9157 is not imposed on a state agency and was mistakenly 
        included in "Required Periodic Reports to the Legislature." 
           (b) There are no explicit words requiring a report to the 
        legislature in sections 241.45, subdivision 2, and 360.015, 
        subdivision 8. 
           (c) Laws 1995, chapter 248, article 1, mistakenly refers to 
        section 17.114, subdivision 15, which should be section 17.117, 
        subdivision 15; section 469.055, subdivision 1, which should be 
        subdivision 2; and section 462A.207, subdivision 6, which should 
        be subdivision 8.  
           (d) No separate report is required by section 214.07, 
        subdivision 1a. 
           (e) A report required by section 10A.035, was required to 
        be saved by Laws 1995, chapter 248, article 1.  There is no 
        section 10A.035.  It is assumed that section 10A.335 was the 
        intended reference so the report in section 10A.335 is not 
        abolished. 
           (f) The following sections containing abolished reporting 
        requirements were renumbered:  (1) 256H.195 to 119B.17, (2) 
        257.803 to 119A.13, and (3) 299A.30 to 119A.26. 
           Sec. 2.  Minnesota Statutes 1996, section 3.873, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INFORMATION COLLECTION; INTERGOVERNMENTAL 
        COORDINATION.] (a) The commission may conduct public hearings 
        and otherwise collect data and information necessary to its 
        purposes. 
           (b) The commission may request information or assistance 
        from any state agency or officer to assist the commission in 
        performing its duties.  The agency or officer shall promptly 
        furnish any information or assistance requested.  
           (c) The secretary of the senate and the chief clerk of the 
        house shall provide the commission with a copy of each bill 
        introduced in the legislature concerning children, youth, and 
        their families. 
           (d) Before implementing new or substantially revised 
        programs relating to the subjects being studied by the 
        commission under subdivision 7, the commissioner responsible for 
        the program shall prepare an implementation plan for the program 
        and shall submit the plan to the commission for review and 
        comment.  The commission may advise and make recommendations to 
        the commissioner on the implementation of the program and may 
        request the changes or additions in the plan it deems 
        appropriate. 
           (e) By July 1, 1991, the responsible state agency 
        commissioners, including the commissioners of education, health, 
        human services, economic security, and corrections, shall 
        prepare data for presentation to the commission on the state 
        programs to be examined by the commission under subdivision 7, 
        paragraph (a). 
           (f) To facilitate coordination between executive and 
        legislative authorities, the commission shall meet with the 
        children's cabinet. 
           Sec. 3.  Minnesota Statutes 1996, section 3.873, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PRIORITIES.] The commission shall give priority 
        to studying and reporting to the legislature on the matters 
        described in this subdivision.  To the extent possible, the 
        commission shall consult with knowledgeable individuals in 
        communities throughout the state when developing recommendations 
        or preparing reports on these matters. 
           (a) The commission must study and report on methods of 
        improving legislative consideration of children and family 
        issues and coordinating state agency programs relating to 
        children and families, including the desirability, feasibility, 
        and effects of creating a new state department of children's 
        services, or children and family services, in which would be 
        consolidated the responsibility for administering state programs 
        relating to children and families. 
           (b) The commission must study and report on methods of 
        consolidating or coordinating local health, correctional, 
        educational, job, and human services, to improve the efficiency 
        and effectiveness of services to children and families and to 
        eliminate duplicative and overlapping services.  The commission 
        shall evaluate and make recommendations on programs and projects 
        in this and other states that encourage or require local 
        jurisdictions to consolidate the delivery of services in schools 
        or other community centers to reduce the cost and improve the 
        coverage and accessibility of services.  The commission must 
        study and recommend specific effectiveness measures to 
        accurately determine the efficacy of programs and services 
        provided to children and their families.  The commission must 
        consider and recommend how to transform fragmented, 
        crisis-oriented delivery systems focused on remediation services 
        into flexible, comprehensive, well-coordinated, and 
        family-oriented delivery systems focused on prevention 
        services.  The commission must review and evaluate what impact 
        the classification of data has on service providers' ability to 
        anticipate and meet the full range of families' needs.  The 
        commission must report on any laws, rules, or procedures that 
        interfere with the effective delivery of community-based 
        services to children and families. 
           (c) The commission must study and report on methods of 
        improving and coordinating educational, social, and health care 
        services that assist children and families during the early 
        childhood years.  The commission's study must include an 
        evaluation of the following:  early childhood health and 
        development screening services, headstart, child care, early 
        childhood family education, and parents' involvement in programs 
        meeting the social, cognitive, physical, and emotional needs of 
        children.  
           (d) The commission must study and report on methods of 
        improving and coordinating the practices of judicial, 
        correctional, and social service agencies in placing juvenile 
        offenders and children who are in need of protective services or 
        treatment. 
           (e) The commission must study and recommend constructive 
        changes in preventive, community-based programs that encourage 
        children and youth to responsibly serve their community. 
           (f) The legislative commission on children, youth, and 
        their families and the children's cabinet must study and make 
        joint recommendations regarding a state-level governance 
        structure to deliver funding and coordinate policy for children 
        and their families.  These recommendations may include 
        structural changes to minimize barriers to and actively promote 
        collaborating and integrating services for children and families 
        in the community.  The commission and cabinet must jointly 
        evaluate the need for a new cabinet-level agency for children.  
        The commission and cabinet shall report their findings and 
        recommendations to the legislature by January 15, 1994. 
           Sec. 4.  Minnesota Statutes 1996, section 9.041, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LEGISLATIVE ACTION; SMALL CLAIMS.] The executive 
        council shall refer its findings and conclusions to the 
        legislature for confirmation and No adjustment or settlement of 
        any claim by the executive council is final until ratified by 
        the legislature.  The executive council may make final 
        settlement and adjustment of individual claims of settlers or 
        Indian allottees, where the land in question does not exceed 100 
        acres.  
           Sec. 5.  Minnesota Statutes 1996, section 16A.276, is 
        amended to read: 
           16A.276 [CASH OVERAGE AND SHORTAGE ACCOUNT.] 
           The commissioner may keep accounts to record daily the 
        difference between actual and recorded cash receipts including 
        losses from forged and uncollectible checks.  At the end of the 
        fiscal year, the commissioner shall clear the accounts by 
        transferring the balances to the general fund and paying the 
        deficits from operating accounts of the agencies charged with 
        the deficit and shall report an adjustment to the legislative 
        audit commission. 
           Sec. 6.  Minnesota Statutes 1996, section 17.138, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COORDINATION OF RESEARCH.] The commissioner 
        shall coordinate manure management research and monitoring and 
        make recommendations on manure management research and 
        monitoring funding priorities to the legislature and other 
        funding bodies other than the legislature. 
           Sec. 7.  Minnesota Statutes 1996, section 45.027, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL POWERS.] In connection with the 
        duties and responsibilities entrusted to the commissioner, and 
        Laws 1993, chapter 361, section 2, the commissioner of commerce 
        may:  
           (1) make public or private investigations within or without 
        this state as the commissioner considers necessary to determine 
        whether any person has violated or is about to violate any law, 
        rule, or order related to the duties and responsibilities 
        entrusted to the commissioner; 
           (2) require or permit any person to file a statement in 
        writing, under oath or otherwise as the commissioner determines, 
        as to all the facts and circumstances concerning the matter 
        being investigated; 
           (3) hold hearings, upon reasonable notice, in respect to 
        any matter arising out of the duties and responsibilities 
        entrusted to the commissioner; 
           (4) conduct investigations and hold hearings for the 
        purpose of compiling information with a view to recommending 
        changes to the legislature in the laws related to the duties and 
        responsibilities entrusted to the commissioner; 
           (5) examine the books, accounts, records, and files of 
        every licensee, and of every person who is engaged in any 
        activity regulated; the commissioner or a designated 
        representative shall have free access during normal business 
        hours to the offices and places of business of the person, and 
        to all books, accounts, papers, records, files, safes, and 
        vaults maintained in the place of business; 
           (6) publish information which is contained in any order 
        issued by the commissioner; and 
           (7) require any person subject to duties and 
        responsibilities entrusted to the commissioner, to report all 
        sales or transactions that are regulated.  The reports must be 
        made within ten days after the commissioner has ordered the 
        report.  The report is accessible only to the respondent and 
        other governmental agencies unless otherwise ordered by a court 
        of competent jurisdiction.  
           Sec. 8.  Minnesota Statutes 1996, section 119A.13, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PLAN FOR DISBURSEMENT OF FUNDS.] By June 1, 
        1987, the commissioner, assisted by the advisory council, shall 
        develop a plan to disburse money from the trust fund.  In 
        developing the plan, the commissioner shall review prevention 
        programs.  The plan must ensure that all geographic areas of the 
        state have an equal opportunity to establish prevention programs 
        and receive trust fund money.  Biennially thereafter the 
        commissioner shall send the plan to the legislature and the 
        governor by January 1 of each odd-numbered year.  
           Sec. 9.  Minnesota Statutes 1996, section 119A.13, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RESPONSIBILITIES OF THE COMMISSIONER.] (a) The 
        commissioner shall: 
           (1) provide for the coordination and exchange of 
        information on the establishment and maintenance of prevention 
        programs; 
           (2) develop and publish criteria for receiving trust fund 
        money by prevention programs; 
           (3) review, approve, and monitor the spending of trust fund 
        money by prevention programs; 
           (4) provide statewide educational and public informational 
        seminars to develop public awareness on preventing child abuse; 
        to encourage professional persons and groups to recognize 
        instances of child abuse and work to prevent them; to make 
        information on child abuse prevention available to the public 
        and to organizations and agencies; and to encourage the 
        development of prevention programs; 
           (5) establish a procedure for an annual, internal 
        evaluation of the functions, responsibilities, and performance 
        of the commissioner in carrying out Laws 1986, chapter 423.  In 
        a year in which the state plan is prepared, the evaluation must 
        be coordinated with the preparation of the state plan; 
           (6) provide technical assistance to local councils and 
        agencies working in the area of child abuse prevention; and 
           (7) accept and review grant applications beginning June 1, 
        1987. 
           (b) The commissioner shall recommend to the governor and 
        the legislature changes in state programs, statutes, policies, 
        budgets, and standards that will reduce the problems of child 
        abuse, improve coordination among state agencies that provide 
        prevention services, and improve the condition of children, 
        parents, or guardians in need of prevention program services. 
           Sec. 10.  Minnesota Statutes 1996, section 119A.26, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] (a) The assistant commissioner shall: 
           (1) gather, develop, and make available throughout the 
        state information and educational materials on preventing and 
        reducing violence in the family and in the community, both 
        directly and by serving as a clearinghouse for information and 
        educational materials from schools, state and local agencies, 
        community service providers, and local organizations; 
           (2) foster collaboration among schools, state and local 
        agencies, community service providers, and local organizations 
        that assist in violence intervention or prevention; 
           (3) assist schools, state and local agencies, service 
        providers, and organizations, on request, with training and 
        other programs designed to educate individuals about violence 
        and reinforce values that contribute to ending violence; 
           (4) after consulting with all state agencies involved in 
        preventing or reducing violence within the family or community, 
        develop a statewide strategy for preventing and reducing 
        violence that encompasses the efforts of those agencies and 
        takes into account all money available for preventing or 
        reducing violence from any source; 
           (5) submit the strategy to the governor and the legislature 
        by January 15 of each calendar year, along with a summary of 
        activities occurring during the previous year to prevent or 
        reduce violence experienced by children, young people, and their 
        families; and 
           (6) assist appropriate professional and occupational 
        organizations, including organizations of law enforcement 
        officers, prosecutors, and educators, in developing and 
        operating informational and training programs to improve the 
        effectiveness of activities to prevent or reduce violence within 
        the family or community. 
           (b) The assistant commissioner shall gather and make 
        available information on prevention and supply reduction 
        activities throughout the state, foster cooperation among 
        involved state and local agencies, and assist agencies and 
        public officials in training and other programs designed to 
        improve the effectiveness of prevention and supply reduction 
        activities. 
           (c) The assistant commissioner shall coordinate the 
        distribution of funds received by the state of Minnesota through 
        the federal Anti-Drug Abuse Act.  The assistant commissioner 
        shall recommend to the commissioner recipients of grants under 
        sections 119A.30 and 299A.33, after consultation with the 
        chemical abuse prevention resource council. 
           (d) The assistant commissioner shall: 
           (1) after consultation with all state agencies involved in 
        prevention or supply reduction activities, develop a state 
        chemical abuse and dependency strategy encompassing the efforts 
        of those agencies and taking into account all money available 
        for prevention and supply reduction activities, from any source; 
           (2) submit the strategy to the governor and the legislature 
        by January 15 of each year, along with a summary of prevention 
        and supply reduction activities during the preceding calendar 
        year; 
           (3) assist appropriate professional and occupational 
        organizations, including organizations of law enforcement 
        officers, prosecutors, and educators, in developing and 
        operating informational and training programs to improve the 
        effectiveness of prevention and supply reduction activities; 
           (4) provide information, including information on drug 
        trends, and assistance to state and local agencies, both 
        directly and by functioning as a clearinghouse for information 
        from other agencies; 
           (5) facilitate cooperation among drug program agencies; and 
           (6) in coordination with the chemical abuse prevention 
        resource council, review, approve, and coordinate the 
        administration of prevention, criminal justice, and treatment 
        grants. 
           Sec. 11.  Minnesota Statutes 1996, section 119B.17, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTIES AND POWERS.] The council has the 
        following duties and powers: 
           (1) develop a biennial plan for early childhood care and 
        education in the state; 
           (2) take a leadership role in developing its 
        recommendations in conjunction with the recommendations of other 
        state agencies on the state budget for early childhood care and 
        education; 
           (3) apply for and receive state money and public and 
        private grant money; 
           (4) participate in and facilitate the development of 
        interagency agreements on early childhood care and education 
        issues; 
           (5) review state agency policies on early childhood care 
        and education issues so that they do not conflict; 
           (6) advocate for an effective and coordinated early 
        childhood care and education system with state agencies and 
        programs; 
           (7) study the need for child care funding for special 
        populations whose needs are not being met by current programs; 
           (8) ensure that the early childhood care and education 
        system reflects community diversity; and 
           (9) be responsible for advocating policies and funding for 
        early childhood care and education; and 
           (10) provide a report to the legislature on January 1 of 
        every odd-numbered year, containing a description of the 
        activities and the work plan of the council and any legislative 
        recommendations developed by the council. 
           Sec. 12.  Minnesota Statutes 1996, section 124A.711, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DETERMINATION OF AID.] The total amount of 
        support services aid shall be determined according to indices 
        for each service recommended by the commissioner of children, 
        families, and learning after consultations with appropriate 
        state agencies, educators, and other interested persons.  The 
        commissioner shall recommend indices and aid amounts to the 
        legislature by February 1 of each odd-numbered year.  The 
        indices shall reflect the need for each service based on the 
        economic, geographic, demographic, and other appropriate 
        characteristics of each district. 
           Sec. 13.  Minnesota Statutes 1996, section 144.056, is 
        amended to read: 
           144.056 [PLAIN LANGUAGE IN WRITTEN MATERIALS.] 
           (a) To the extent reasonable and consistent with the goals 
        of providing easily understandable and readable materials and 
        complying with federal and state laws governing the program, all 
        written materials relating to determinations of eligibility for 
        or amounts of benefits that will be given to applicants for or 
        recipients of assistance under a program administered or 
        supervised by the commissioner of health must be understandable 
        to a person who reads at the seventh-grade level, using the 
        Flesch scale analysis readability score as determined under 
        section 72C.09. 
           (b) All written materials relating to services and 
        determinations of eligibility for or amounts of benefits that 
        will be given to applicants for or recipients of assistance 
        under programs administered or supervised by the commissioner of 
        health must be developed to satisfy the plain language 
        requirements of the plain language contract act under sections 
        325G.29 to 325G.36.  Materials may be submitted to the attorney 
        general for review and certification.  Notwithstanding section 
        325G.35, subdivision 1, the attorney general shall review 
        submitted materials to determine whether they comply with the 
        requirements of section 325G.31.  The remedies available 
        pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to 
        these materials.  Failure to comply with this section does not 
        provide a basis for suspending the implementation or operation 
        of other laws governing programs administered by the 
        commissioner. 
           (c) The requirements of this section apply to all materials 
        modified or developed by the commissioner on or after July 1, 
        1988.  The requirements of this section do not apply to 
        materials that must be submitted to a federal agency for 
        approval to the extent that application of the requirements 
        prevents federal approval. 
           (d) Nothing in this section may be construed to prohibit a 
        lawsuit brought to require the commissioner to comply with this 
        section or to affect individual appeal rights under the special 
        supplemental food program for women, infants, and children 
        granted pursuant to federal regulations under the Code of 
        Federal Regulations, chapter 7, section 246. 
           (e) The commissioner shall report annually to the chairs of 
        the health and human services divisions of the senate finance 
        committee and the house of representatives appropriations 
        committee on the number and outcome of cases that raise the 
        issue of the commissioner's compliance with this section. 
           Sec. 14.  Minnesota Statutes 1996, section 144.062, is 
        amended to read: 
           144.062 [VACCINE COST REDUCTION PROGRAM.] 
           The commissioner of administration, after consulting with 
        the commissioner of health, shall negotiate discounts or rebates 
        on vaccine or may purchase vaccine at reduced prices.  Vaccines 
        may be offered for sale to medical care providers at the 
        department's cost plus a fee for administrative costs.  As a 
        condition of receiving the vaccine at reduced cost, a medical 
        care provider must agree to pass on the savings to patients.  
        The commissioner of health may transfer money appropriated for 
        other department of health programs to the commissioner of 
        administration for the initial cost of purchasing vaccine, 
        provided the money is repaid by the end of each state fiscal 
        year and the commissioner of finance approves the transfer.  
        Proceeds from the sale of vaccines to medical care providers, 
        including fees collected for administrative costs, are 
        appropriated to the commissioner of administration.  If the 
        commissioner of administration, in consultation with the 
        commissioner of health, determines that a vaccine cost reduction 
        program is not economically feasible or cost-effective, the 
        commissioner may elect not to implement the program but shall 
        provide a report to the legislature that explains the reasons 
        for the decision. 
           Sec. 15.  Minnesota Statutes 1996, section 144.092, is 
        amended to read: 
           144.092 [COORDINATED NUTRITION DATA COLLECTION.] 
           The commissioner of health may develop and coordinate a 
        reporting system to improve the state's ability to document 
        inadequate nutrient and food intake of Minnesota's children and 
        adults and to identify problems and determine the most 
        appropriate strategies for improving inadequate nutritional 
        status.  The board on aging may develop a method to evaluate the 
        nutritional status and requirements of the elderly in 
        Minnesota.  The commissioner of health and the board on aging 
        may report to the legislature on each July 1, beginning in 1988, 
        on the results of their investigation and their recommendations 
        on the nutritional needs of Minnesotans. 
           Sec. 16.  Minnesota Statutes 1996, section 144A.33, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REPORT; EVALUATION.] Each year the Minnesota 
        board on aging shall evaluate the programs and funding sources 
        established under this section and report to the legislature by 
        February 1 of each year concerning the programs established and 
        the effectiveness of the programs. 
           Sec. 17.  Minnesota Statutes 1996, section 144A.53, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [POWERS.] The director may: 
           (a) Promulgate by rule, pursuant to chapter 14, and within 
        the limits set forth in subdivision 2, the methods by which 
        complaints against health facilities, health care providers, 
        home care providers, or residential care homes, or 
        administrative agencies are to be made, reviewed, investigated, 
        and acted upon; provided, however, that a fee may not be charged 
        for filing a complaint. 
           (b) Recommend legislation and changes in rules to the state 
        commissioner of health, legislature, governor, administrative 
        agencies or the federal government. 
           (c) Investigate, upon a complaint or upon initiative of the 
        director, any action or failure to act by a health care 
        provider, home care provider, residential care home, or a health 
        facility. 
           (d) Request and receive access to relevant information, 
        records, incident reports, or documents in the possession of an 
        administrative agency, a health care provider, a home care 
        provider, a residential care home, or a health facility, and 
        issue investigative subpoenas to individuals and facilities for 
        oral information and written information, including privileged 
        information which the director deems necessary for the discharge 
        of responsibilities.  For purposes of investigation and securing 
        information to determine violations, the director need not 
        present a release, waiver, or consent of an individual.  The 
        identities of patients or residents must be kept private as 
        defined by section 13.02, subdivision 12. 
           (e) Enter and inspect, at any time, a health facility or 
        residential care home and be permitted to interview staff; 
        provided that the director shall not unduly interfere with or 
        disturb the provision of care and services within the facility 
        or home or the activities of a patient or resident unless the 
        patient or resident consents.  
           (f) Issue correction orders and assess civil fines pursuant 
        to section 144.653 or any other law which provides for the 
        issuance of correction orders to health facilities or home care 
        provider, or under section 144A.45.  A facility's or home's 
        refusal to cooperate in providing lawfully requested information 
        may also be grounds for a correction order. 
           (g) Recommend the certification or decertification of 
        health facilities pursuant to Title XVIII or XIX of the United 
        States Social Security Act. 
           (h) Assist patients or residents of health facilities or 
        residential care homes in the enforcement of their rights under 
        Minnesota law.  
           (i) Work with administrative agencies, health facilities, 
        home care providers, residential care homes, and health care 
        providers and organizations representing consumers on programs 
        designed to provide information about health facilities to the 
        public and to health facility residents.  
           Sec. 18.  Minnesota Statutes 1996, section 144A.54, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DIRECTOR; DUTIES.] Except as otherwise 
        provided by this section, the director may determine the form, 
        frequency, and distribution of the conclusions and 
        recommendations.  The director shall transmit the conclusions 
        and recommendations to the state commissioner of health and the 
        legislature.  Before announcing a conclusion or recommendation 
        that expressly or by implication criticizes an administrative 
        agency, a health care provider, a home care provider, a 
        residential care home, or a health facility, the director shall 
        consult with that agency, health care provider, home care 
        provider, home, or facility.  When publishing an opinion adverse 
        to an administrative agency, a health care provider, a home care 
        provider, a residential care home, or a health facility, the 
        director shall include in the publication any statement of 
        reasonable length made to the director by that agency, health 
        care provider, home care provider, residential care home, or 
        health facility in defense or explanation of the action. 
           Sec. 19.  Minnesota Statutes 1996, section 144A.54, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ANNUAL REPORT.] In addition to whatever other 
        reports the director may make, the director shall, at the end of 
        each year, report to the state commissioner of health and the 
        legislature concerning the exercise of the director's functions 
        during the preceding year.  The state commissioner of health 
        may, at any time, request and receive information, other than 
        resident records, from the director. 
           Sec. 20.  Minnesota Statutes 1996, section 145.894, is 
        amended to read: 
           145.894 [STATE COMMISSIONER OF HEALTH; DUTIES, 
        RESPONSIBILITIES.] 
           The commissioner of health shall: 
           (a) develop a comprehensive state plan for the delivery of 
        nutritional supplements to pregnant and lactating women, 
        infants, and children; 
           (b) contract with existing local public or private 
        nonprofit organizations for the administration of the 
        nutritional supplement program; 
           (c) develop and implement a public education program 
        promoting the provisions of sections 145.891 to 145.897, and 
        provide for the delivery of individual and family nutrition 
        education and counseling at project sites.  The education 
        programs must include a campaign to promote breast feeding; 
           (d) develop in cooperation with other agencies and vendors 
        a uniform state voucher system for the delivery of nutritional 
        supplements; 
           (e) authorize local health agencies to issue vouchers 
        bimonthly to some or all eligible individuals served by the 
        agency, provided the agency demonstrates that the federal 
        minimum requirements for providing nutrition education will 
        continue to be met and that the quality of nutrition education 
        and health services provided by the agency will not be adversely 
        impacted; 
           (f) investigate and implement a system to reduce the cost 
        of nutritional supplements and maintain ongoing negotiations 
        with nonparticipating manufacturers and suppliers to maximize 
        cost savings; 
           (g) develop, analyze, and evaluate the health aspects of 
        the nutritional supplement program and establish nutritional 
        guidelines for the program; 
           (h) apply for, administer, and annually expend at least 99 
        percent of available federal or private funds; 
           (i) aggressively market services to eligible individuals by 
        conducting ongoing outreach activities and by coordinating with 
        and providing marketing materials and technical assistance to 
        local human services and community service agencies and 
        nonprofit service providers; 
           (j) determine, on July 1 of each year, the number of 
        pregnant women participating in each special supplemental food 
        program for women, infants, and children (W.I.C.) and, in 1986, 
        1987, and 1988, at the commissioner's discretion, designate a 
        different food program deliverer if the current deliverer fails 
        to increase the participation of pregnant women in the program 
        by at least ten percent over the previous year's participation 
        rate; 
           (k) promulgate all rules necessary to carry out the 
        provisions of sections 145.891 to 145.897; and 
           (l) report to the legislature by November 15 of every year 
        on the expenditures and activities under sections 145.891 to 
        145.897 of the state and local health agencies for the preceding 
        fiscal year; and 
           (m) ensure that any state appropriation to supplement the 
        federal program is spent consistent with federal requirements. 
           Sec. 21.  Minnesota Statutes 1996, section 152.02, 
        subdivision 13, is amended to read: 
           Subd. 13.  Annually, the state board of pharmacy shall 
        study the implementation of this chapter in relation to the 
        problems of drug abuse in Minnesota and shall report to the 
        legislature annually on or before December 1, their 
        recommendations concerning amendments to this chapter. 
           Sec. 22.  Minnesota Statutes 1996, section 152.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RESEARCH GRANT.] The commissioner of health 
        shall grant funds to the principal investigator selected by the 
        commissioner pursuant to subdivision 4 for the purpose of 
        conducting a research program under a protocol approved by the 
        FDA regarding the therapeutic use of oral THC and other dosage 
        forms, if available, according to the guidelines and 
        requirements of the federal food and drug administration, the 
        drug enforcement administration and the national institute on 
        drug abuse.  The commissioner shall ensure that the research 
        principal investigator complies with the requirements of 
        subdivision 5.  The commissioner may designate the principal 
        investigator as the sponsor.  
           The commissioner shall report to the legislature on January 
        1 of each odd-numbered year on the number of oncologists and 
        patients involved in the program and the results available at 
        that date regarding the effects of therapeutic use of THC on 
        patients involved in the program.  The commissioner shall also 
        report on the current status of THC under the federal Food, Drug 
        and Cosmetic Act and the federal Controlled Substances Act.  
           Sec. 23.  Minnesota Statutes 1996, section 161.10, is 
        amended to read: 
           161.10 [INVESTIGATIONS, RECOMMENDATIONS, REPORTS.] 
           When practicable the commissioner shall investigate and 
        determine the location of road material in the state, ascertain 
        the most approved methods of construction and improvement of 
        roads, investigate the most approved laws in relation to roads 
        in other states and hold public meetings throughout the state 
        when deemed advisable.  On or before November 15 on each 
        even-numbered year the commissioner shall make a printed report 
        to the governor and the legislature stating the condition, 
        management, and financial transactions of the transportation 
        department, including a statement of the expense incurred in 
        maintaining such department; the number of miles of roads built 
        or improved during the preceding two fiscal years and their 
        cost; the general character and location of material suitable 
        for road construction; the general character and needs of the 
        roads of the state; the name, location, size, and description of 
        each state trail, state water access site, and state rest area 
        established by the commissioner since the last report; and 
        recommend such legislation as the commissioner deems advisable.  
        The report shall be transmitted by the governor to the 
        legislature.  
           Sec. 24.  Minnesota Statutes 1996, section 161.1419, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REPORT TO LEGISLATURE PROGRAM REVIEW.] The 
        commission may review the programs of the various interstate 
        compacts, studies, planning groups and commissions involved in 
        water and land use activities along the Mississippi river in 
        Minnesota and report to the legislature biennially any 
        duplication of programs and funding as well as its 
        recommendations for new legislation. 
           Sec. 25.  Minnesota Statutes 1996, section 192.551, is 
        amended to read: 
           192.551 [ARMY REGULATIONS TO APPLY.] 
           All money and property received from any source for the 
        military forces shall be kept, disbursed, and accounted for as 
        prescribed by army regulations, where applicable, otherwise as 
        prescribed by state rules.  All such accounts shall be examined 
        and audited at least once annually by officers of the military 
        forces detailed by the adjutant general as military auditors.  
        The adjutant general shall file a copy of the report of every 
        such examination with the legislative auditor.  This shall not 
        preclude other examinations of such accounts by the legislative 
        auditor as authorized by law.  The legislative auditor may 
        appoint any military auditor as an assistant examiner, with all 
        the powers incident thereto, in connection with the examination 
        of such accounts.  The provisions of the state civil service act 
        shall not be applicable to such appointments. 
           Sec. 26.  Minnesota Statutes 1996, section 197.133, is 
        amended to read: 
           197.133 [DISPOSAL OF PROPERTY AND EXPIRATION OF THE BOARD 
        OF GOVERNORS.] 
           If a majority of the board determines that the disposal of 
        the camp or a portion of the camp is in the best interests of 
        Minnesota veterans, or if the camp is not used solely as a camp 
        for and by disabled and other veterans and their families and 
        operated and maintained in compliance with all state, federal, 
        and local laws, the board may dispose of the property at market 
        value as provided in this section.  Before disposing of the 
        property, the board shall give notice by certified mail to the 
        commissioner of veterans affairs of its decision to dispose of 
        the property.  The commissioner shall publish the notice in the 
        State Register.  Interested governmental agencies have until the 
        end of the next legislative session after the notice to 
        appropriate money to purchase the property. 
           Proceeds realized from the disposal of the property and any 
        assets on hand at the time of the disposal of the property, must 
        be placed in an irrevocable trust to be used for the initiation 
        or maintenance of veterans programs in the state of Minnesota. 
        Trustees must be appointed in the same manner as provided for 
        under section 197.131.  The trustees shall consult with the 
        commissioner of veterans affairs to determine the needs of 
        Minnesota veterans and provide the commissioner and the 
        committee on general legislation and veterans affairs of the 
        house of representatives and the committee on veterans and 
        general legislation in the senate with an annual written report 
        on the trust.  The commissioner must approve all expenditures 
        from the trust.  A certified audit of all assets, expenditures, 
        and property must be conducted prior to any disposition of any 
        assets under the control of the board.  Any board member who 
        would benefit directly or indirectly financially from the sale 
        of this property must be removed by the board and a successor 
        appointed as provided by section 197.131.  Upon final 
        disposition of all assets to the trust, the board must disband.  
        Should the assets of the trust be exhausted, the trust must be 
        terminated. 
           Sec. 27.  Minnesota Statutes 1996, section 214.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BOARD REPORTS.] The health-related 
        licensing boards and the non-health-related licensing boards 
        shall prepare reports according to this subdivision and 
        subdivision 1a by October 1 of each even-numbered year.  Copies 
        of the reports shall be delivered to the legislature in 
        accordance with section 3.195, and to the governor.  Copies of 
        the reports of the health-related licensing boards shall also be 
        delivered to the commissioner of health.  The reports shall 
        contain the following information relating to the two-year 
        period ending the previous June 30: 
           (a) a general statement of board activities; 
           (b) the number of meetings and approximate total number of 
        hours spent by all board members in meetings and on other board 
        activities; 
           (c) the receipts and disbursements of board funds; 
           (d) the names of board members and their addresses, 
        occupations, and dates of appointment and reappointment to the 
        board; 
           (e) the names and job classifications of board employees; 
           (f) a brief summary of board rules proposed or adopted 
        during the reporting period with appropriate citations to the 
        State Register and published rules; 
           (g) the number of persons having each type of license and 
        registration issued by the board as of June 30 in the year of 
        the report; 
           (h) the locations and dates of the administration of 
        examinations by the board; 
           (i) the number of persons examined by the board with the 
        persons subdivided into groups showing age categories, sex, and 
        states of residency; 
           (j) the number of persons licensed or registered by the 
        board after taking the examinations referred to in clause (h) 
        with the persons subdivided by age categories, sex, and states 
        of residency; 
           (k) the number of persons not licensed or registered by the 
        board after taking the examinations referred to in clause (h) 
        with the persons subdivided by age categories, sex, and states 
        of residency; 
           (l) the number of persons not taking the examinations 
        referred to in clause (h) who were licensed or registered by the 
        board or who were denied licensing or registration with the 
        reasons for the licensing or registration or denial thereof and 
        with the persons subdivided by age categories, sex, and states 
        of residency; 
           (m) the number of persons previously licensed or registered 
        by the board whose licenses or registrations were revoked, 
        suspended, or otherwise altered in status with brief statements 
        of the reasons for the revocation, suspension or alteration; 
           (n) the number of written and oral complaints and other 
        communications received by the executive director or executive 
        secretary of the board, a board member, or any other person 
        performing services for the board (1) which allege or imply a 
        violation of a statute or rule which the board is empowered to 
        enforce and (2) which are forwarded to other agencies as 
        required by section 214.10; 
           (o) a summary, by specific category, of the substance of 
        the complaints and communications referred to in clause (n) and, 
        for each specific category, the responses or dispositions 
        thereof pursuant to section 214.10 or 214.11; 
           (p) any other objective information which the board members 
        believe will be useful in reviewing board activities. 
           Sec. 28.  Minnesota Statutes 1996, section 214.13, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RECOMMENDATION ON REGULATION; APPLICATION 
        RENEWAL.] The commissioner of health shall exercise care to 
        prevent the proliferation of unessential registered human 
        services occupations.  If In evaluating a currently unregistered 
        occupation the commissioner determines may determine that 
        registration of the occupation is not appropriate, but that 
        implementation of another mode as set forth in section 214.001, 
        subdivision 3, is appropriate the commissioner shall promptly so 
        report to the legislature.  For a period of two years after a 
        determination by the commissioner as to the appropriate 
        regulatory mode, if any, for an occupational applicant group, 
        the same or substantially equivalent group may not submit a 
        letter of intent to enter the credentialing process, unless 
        invited to do so by the commissioner.  
           Sec. 29.  Minnesota Statutes 1996, section 237.70, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ADMINISTRATION.] The telephone assistance plan 
        must be administered jointly by the commission, the department 
        of human services, and the telephone companies in accordance 
        with the following guidelines: 
           (a) The commission and the department of human services 
        shall develop an application form that must be completed by the 
        subscriber for the purpose of certifying eligibility for 
        telephone assistance plan credits to the department of human 
        services.  The application must contain the applicant's social 
        security number.  Applicants who refuse to provide a social 
        security number will be denied telephone assistance plan 
        credits.  The application form must include provisions for the 
        applicant to show the name of the applicant's telephone 
        company.  The application must also advise the applicant to 
        submit the required proof of age or disability, and income and 
        must provide examples of acceptable proof.  The application must 
        state that failure to submit proof with the application will 
        result in the applicant being found ineligible.  Each telephone 
        company shall annually mail a notice of the availability of the 
        telephone assistance plan to each residential subscriber in a 
        regular billing and shall mail the application form to customers 
        when requested.  
           The notice must state the following: 
           YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE 
        BILL IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND IF 
        YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS.  FOR MORE INFORMATION 
        OR AN APPLICATION FORM PLEASE CONTACT ......... 
           (b) The department of human services shall determine the 
        eligibility for telephone assistance plan credits at least 
        annually according to the criteria contained in subdivision 4a.  
           (c) An application may be made by the subscriber, the 
        subscriber's spouse, or a person authorized by the subscriber to 
        act on the subscriber's behalf.  On completing the application 
        certifying that the statutory criteria for eligibility are 
        satisfied, the applicant must return the application to an 
        office of the department of human services specially designated 
        to process telephone assistance plan applications.  On receiving 
        a completed application from an applicant, the department of 
        human services shall determine the applicant's eligibility or 
        ineligibility within 120 days.  If the department fails to do 
        so, it shall within three working days provide written notice to 
        the applicant's telephone company that the company shall provide 
        telephone assistance plan credits against monthly charges in the 
        earliest possible month following receipt of the written 
        notice.  The applicant must receive telephone assistance plan 
        credits until the earliest possible month following the 
        company's receipt of notice from the department that the 
        applicant is ineligible. 
           If the department of human services determines that an 
        applicant is not eligible to receive telephone assistance plan 
        credits, it shall notify the applicant within ten working days 
        of that determination. 
           Within ten working days of determining that an applicant is 
        eligible to receive telephone assistance plan credits, the 
        department of human services shall provide written notification 
        to the telephone company that serves the applicant.  The notice 
        must include the applicant's name, address, and telephone number.
           Each telephone company shall provide telephone assistance 
        plan credits against monthly charges in the earliest possible 
        month following receipt of notice from the department of human 
        services. 
           By December 31 of each year, the department of human 
        services shall redetermine eligibility of each person receiving 
        telephone assistance plan credits, as required in paragraph (b). 
        The department of human services shall submit an annual report 
        to the legislature and the commission by January 15 of each year 
        showing that the department has determined the eligibility for 
        telephone assistance plan credits of each person receiving the 
        credits or explaining why the determination has not been made 
        and showing how and when the determination will be completed.  
           If the department of human services determines that a 
        current recipient of telephone assistance plan credits is not 
        eligible to receive the credits, it shall notify, in writing, 
        the recipient within ten working days and the telephone company 
        serving the recipient within 20 working days of the 
        determination.  The notice must include the recipient's name, 
        address, and telephone number. 
           Each telephone company shall remove telephone assistance 
        plan credits against monthly charges in the earliest possible 
        month following receipt of notice from the department of human 
        services. 
           Each telephone company that disconnects a subscriber 
        receiving the telephone assistance plan credit shall report the 
        disconnection to the department of human services.  The reports 
        must be submitted monthly, identifying the subscribers 
        disconnected.  Telephone companies that do not disconnect a 
        subscriber receiving the telephone assistance plan credit are 
        not required to report.  
           If the telephone assistance plan credit is not itemized on 
        the subscriber's monthly charges bill for local telephone 
        service, the telephone company must notify the subscriber of the 
        approval for the telephone assistance plan credit. 
           (d) The commission shall serve as the coordinator of the 
        telephone assistance plan and be reimbursed for its 
        administrative expenses from the surcharge revenue pool.  As the 
        coordinator, the commission shall: 
           (1) establish a uniform statewide surcharge in accordance 
        with subdivision 6; 
           (2) establish a uniform statewide level of telephone 
        assistance plan credit that each telephone company shall extend 
        to each eligible household in its service area; 
           (3) require each telephone company to account to the 
        commission on a periodic basis for surcharge revenues collected 
        by the company, expenses incurred by the company, not to include 
        expenses of collecting surcharges, and credits extended by the 
        company under the telephone assistance plan; 
           (4) require each telephone company to remit surcharge 
        revenues to the department of administration for deposit in the 
        fund; and 
           (5) remit to each telephone company from the surcharge 
        revenue pool the amount necessary to compensate the company for 
        expenses, not including expenses of collecting the surcharges, 
        and telephone assistance plan credits.  When it appears that the 
        revenue generated by the maximum surcharge permitted under 
        subdivision 6 will be inadequate to fund any particular 
        established level of telephone assistance plan credits, the 
        commission shall reduce the credits to a level that can be 
        adequately funded by the maximum surcharge.  Similarly, the 
        commission may increase the level of the telephone assistance 
        plan credit that is available or reduce the surcharge to a level 
        and for a period of time that will prevent an unreasonable 
        overcollection of surcharge revenues. 
           (e) Each telephone company shall maintain adequate records 
        of surcharge revenues, expenses, and credits related to the 
        telephone assistance plan and shall, as part of its annual 
        report or separately, provide the commission and the department 
        of public service with a financial report of its experience 
        under the telephone assistance plan for the previous year.  That 
        report must also be adequate to satisfy the reporting 
        requirements of the federal matching plan.  
           (f) The department of public service shall investigate 
        complaints against telephone companies with regard to the 
        telephone assistance plan and shall report the results of its 
        investigation to the commission.  
           Sec. 30.  Minnesota Statutes 1996, section 241.01, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [COMMISSIONER, POWERS AND DUTIES.] The 
        commissioner of corrections has the following powers and duties: 
           (a) To accept persons committed to the commissioner by the 
        courts of this state for care, custody, and rehabilitation. 
           (b) To determine the place of confinement of committed 
        persons in a correctional facility or other facility of the 
        department of corrections and to prescribe reasonable conditions 
        and rules for their employment, conduct, instruction, and 
        discipline within or outside the facility.  Inmates shall not 
        exercise custodial functions or have authority over other 
        inmates.  Inmates may serve on the board of directors or hold an 
        executive position subordinate to correctional staff in any 
        corporation, private industry or educational program located on 
        the grounds of, or conducted within, a state correctional 
        facility with written permission from the chief executive 
        officer of the facility.  
           (c) To administer the money and property of the department. 
           (d) To administer, maintain, and inspect all state 
        correctional facilities. 
           (e) To transfer authorized positions and personnel between 
        state correctional facilities as necessary to properly staff 
        facilities and programs. 
           (f) To utilize state correctional facilities in the manner 
        deemed to be most efficient and beneficial to accomplish the 
        purposes of this section, but not to close the Minnesota 
        correctional facility-Stillwater or the Minnesota correctional 
        facility-St. Cloud without legislative approval.  The 
        commissioner may place juveniles and adults at the same state 
        minimum security correctional facilities, if there is total 
        separation of and no regular contact between juveniles and 
        adults, except contact incidental to admission, classification, 
        and mental and physical health care.  
           (g) To organize the department and employ personnel the 
        commissioner deems necessary to discharge the functions of the 
        department, including a chief executive officer for each 
        facility under the commissioner's control who shall serve in the 
        unclassified civil service and may, under the provisions of 
        section 43A.33, be removed only for cause, and two internal 
        affairs officers for security. 
           (h) To define the duties of these employees and to delegate 
        to them any of the commissioner's powers, duties and 
        responsibilities, subject to the commissioner's control and the 
        conditions the commissioner prescribes. 
           (i) To annually develop a comprehensive set of goals and 
        objectives designed to clearly establish the priorities of the 
        department of corrections.  This report shall be submitted to 
        the governor and the state legislature commencing January 1, 
        1976.  The commissioner may establish ad hoc advisory committees.
           Sec. 31.  Minnesota Statutes 1996, section 244.09, 
        subdivision 7, is amended to read: 
           Subd. 7.  After the implementation of the sentencing 
        guidelines promulgated by the commission, the commission shall 
        study the their impact of the sentencing guidelines promulgated 
        by the commission after their implementation.  The commission 
        shall also, after implementation of the guidelines, review the 
        powers and duties of the commissioner of corrections and make 
        recommendations to the legislature on the appropriate role, if 
        any, of the board under the guidelines and review the powers and 
        duties of the commissioner of corrections.  
           Sec. 32.  Minnesota Statutes 1996, section 244.13, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EVALUATION.] The commissioner shall develop a 
        system for gathering and analyzing information concerning the 
        value and effectiveness of the intensive community supervision 
        and intensive supervised release programs and shall compile a 
        report to the chairs of the committees in the senate and house 
        of representatives with jurisdiction over criminal justice 
        policy by January 1 of each odd-numbered year. 
           Sec. 33.  Minnesota Statutes 1996, section 245.697, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] The state advisory council on mental 
        health shall:  
           (1) advise the governor, the legislature, and heads of 
        state departments and agencies about policy, programs, and 
        services affecting people with mental illness; 
           (2) advise the commissioner of human services on all phases 
        of the development of mental health aspects of the biennial 
        budget; 
           (3) advise the governor and the legislature about the 
        development of innovative mechanisms for providing and financing 
        services to people with mental illness; 
           (4) encourage state departments and other agencies to 
        conduct needed research in the field of mental health; 
           (5) review recommendations of the subcommittee on 
        children's mental health; 
           (6) educate the public about mental illness and the needs 
        and potential of people with mental illness; 
           (7) review and comment on all grants dealing with mental 
        health and on the development and implementation of state and 
        local mental health plans; and 
           (8) coordinate the work of local children's and adult 
        mental health advisory councils and subcommittees. 
           Sec. 34.  Minnesota Statutes 1996, section 245.697, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REPORTS.] The state advisory council on mental 
        health shall report from time to time on its activities to the 
        governor, the legislature, and the commissioners of health, 
        economic security, and human services.  It shall file a formal 
        report with the governor not later than October 15 of each 
        even-numbered year so that the information contained in the 
        report, including recommendations, can be included in the 
        governor's budget message to the legislature.  It shall also 
        report to the legislature not later than November 15 of each 
        even-numbered year. 
           Sec. 35.  Minnesota Statutes 1996, section 246.06, is 
        amended to read: 
           246.06 [REPORTS.] 
           On or before November 15 in each even-numbered year, the 
        commissioner of human services shall make a report to the 
        governor and legislature covering the biennial period ending 
        June 30th preceding, therein giving observations and conclusions 
        respecting each institution under control of the commissioner.  
        This report shall contain the reports of the executive officers 
        of the institutions, a statement of the visitations thereto, and 
        when and by whom made, the name and salary of every employee of 
        the commissioner, and of every officer and employee of the 
        several institutions.  Such report shall be published under the 
        direction of the commissioner of administration and paid for out 
        of the appropriation for public printing.  The commissioner of 
        human services shall make such other reports to the governor as 
        the commissioner may from time to time require, or as the 
        commissioner may deem necessary, relating to the condition and 
        wants of the several institutions. 
           Sec. 36.  Minnesota Statutes 1996, section 246.64, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RESPONSIBILITIES OF COMMISSIONER.] The 
        commissioner shall credit all receipts from billings for rates 
        set in subdivision 1, except those credited according to 
        subdivision 2, to the chemical dependency fund.  This money must 
        not be used for a regional treatment center activity that is not 
        a chemical dependency service or an allocation of expenditures 
        that are included in the base for computation of the rates under 
        subdivision 1.  The commissioner may expand chemical dependency 
        services so long as expenditures are recovered by patient fees, 
        transfer of funds, or supplementary appropriations.  The 
        commissioner may expand or reduce chemical dependency staff 
        complement as long as expenditures are recovered by patient 
        fees, transfer of funds, or supplementary appropriations.  
        Notwithstanding chapters 176 and 268, the commissioner shall 
        provide for the self-insurance of regional treatment center 
        chemical dependency programs for the costs of reemployment 
        insurance and workers' compensation claims.  The commissioner 
        shall provide a biennial report to the chairs of the senate 
        division on health care and family services, the house of 
        representatives division on health and housing finance, and the 
        senate health care committee and house of representatives health 
        and human services committee.  
           Sec. 37.  Minnesota Statutes 1996, section 252.035, is 
        amended to read: 
           252.035 [REGIONAL TREATMENT CENTER CATCHMENT AREAS.] 
           The commissioner may administratively designate catchment 
        areas for regional treatment centers and state nursing homes.  
        Catchment areas may vary by client group served.  Catchment 
        areas in effect on January 1, 1989, may not be modified until 
        the commissioner has consulted with the regional planning 
        committees of the affected regional treatment centers and with 
        the chairs of the senate health and human services finance 
        division and the house of representatives health and human 
        services appropriation division. 
           Sec. 38.  Minnesota Statutes 1996, section 252.291, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTIES OF COMMISSIONER OF HUMAN SERVICES.] The 
        commissioner shall:  
           (a) establish standard admission criteria for state 
        hospitals and county utilization targets to limit and reduce the 
        number of intermediate care beds in state hospitals and 
        community facilities in accordance with approved waivers under 
        United States Code, title 42, sections 1396 to 1396p, as amended 
        through December 31, 1987, to assure that appropriate services 
        are provided in the least restrictive setting; 
           (b) define services, including respite care, that may be 
        needed in meeting individual service plan objectives; 
           (c) provide technical assistance so that county boards may 
        establish a request for proposal system for meeting individual 
        service plan objectives through home and community-based 
        services; alternative community services; or, if no other 
        alternative will meet the needs of identifiable individuals for 
        whom the county is financially responsible, a new intermediate 
        care facility for persons with mental retardation or related 
        conditions; 
           (d) establish a client tracking and evaluation system as 
        required under applicable federal waiver regulations, Code of 
        Federal Regulations, title 42, sections 431, 435, 440, and 441, 
        as amended through December 31, 1987; and 
           (e) develop a state plan for the delivery and funding of 
        residential day and support services to persons with mental 
        retardation or related conditions in Minnesota and submit that 
        plan to the clerk of each house of the Minnesota legislature on 
        or before the 15th of January of each biennium beginning January 
        15, 1985.  The biennial mental retardation plan shall include 
        but not be limited to: 
           (1) county by county maximum intermediate care bed 
        utilization quotas; 
           (2) plans for the development of the number and types of 
        services alternative to intermediate care beds; 
           (3) procedures for the administration and management of the 
        plan; 
           (4) procedures for the evaluation of the implementation of 
        the plan; and 
           (5) the number, type, and location of intermediate care 
        beds targeted for decertification. 
           The commissioner shall modify the plan to ensure 
        conformance with the medical assistance home and community-based 
        services waiver. 
           Sec. 39.  Minnesota Statutes 1996, section 254A.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  (a) The commissioner shall provide program and 
        service guidelines and technical assistance to the county boards 
        in carrying out services authorized under sections 254A.08, 
        254A.12, 254A.14, and their responsibilities under chapter 256E. 
           (b) The commissioner shall recommend to the governor and to 
        the legislature means of improving the efficiency and 
        effectiveness of comprehensive program services in the state and 
        maximizing the use of nongovernmental funds for providing 
        comprehensive programs. 
           Sec. 40.  Minnesota Statutes 1996, section 256.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
        section 241.021, subdivision 2, the commissioner of human 
        services shall: 
           (1) Administer and supervise all forms of public assistance 
        provided for by state law and other welfare activities or 
        services as are vested in the commissioner.  Administration and 
        supervision of human services activities or services includes, 
        but is not limited to, assuring timely and accurate distribution 
        of benefits, completeness of service, and quality program 
        management.  In addition to administering and supervising human 
        services activities vested by law in the department, the 
        commissioner shall have the authority to: 
           (a) require county agency participation in training and 
        technical assistance programs to promote compliance with 
        statutes, rules, federal laws, regulations, and policies 
        governing human services; 
           (b) monitor, on an ongoing basis, the performance of county 
        agencies in the operation and administration of human services, 
        enforce compliance with statutes, rules, federal laws, 
        regulations, and policies governing welfare services and promote 
        excellence of administration and program operation; 
           (c) develop a quality control program or other monitoring 
        program to review county performance and accuracy of benefit 
        determinations; 
           (d) require county agencies to make an adjustment to the 
        public assistance benefits issued to any individual consistent 
        with federal law and regulation and state law and rule and to 
        issue or recover benefits as appropriate; 
           (e) delay or deny payment of all or part of the state and 
        federal share of benefits and administrative reimbursement 
        according to the procedures set forth in section 256.017; and 
           (f) make contracts with and grants to public and private 
        agencies and organizations, both profit and nonprofit, and 
        individuals, using appropriated funds. 
           (2) Inform county agencies, on a timely basis, of changes 
        in statute, rule, federal law, regulation, and policy necessary 
        to county agency administration of the programs. 
           (3) Administer and supervise all child welfare activities; 
        promote the enforcement of laws protecting handicapped, 
        dependent, neglected and delinquent children, and children born 
        to mothers who were not married to the children's fathers at the 
        times of the conception nor at the births of the children; 
        license and supervise child-caring and child-placing agencies 
        and institutions; supervise the care of children in boarding and 
        foster homes or in private institutions; and generally perform 
        all functions relating to the field of child welfare now vested 
        in the state board of control. 
           (4) Administer and supervise all noninstitutional service 
        to handicapped persons, including those who are visually 
        impaired, hearing impaired, or physically impaired or otherwise 
        handicapped.  The commissioner may provide and contract for the 
        care and treatment of qualified indigent children in facilities 
        other than those located and available at state hospitals when 
        it is not feasible to provide the service in state hospitals. 
           (5) Assist and actively cooperate with other departments, 
        agencies and institutions, local, state, and federal, by 
        performing services in conformity with the purposes of Laws 
        1939, chapter 431. 
           (6) Act as the agent of and cooperate with the federal 
        government in matters of mutual concern relative to and in 
        conformity with the provisions of Laws 1939, chapter 431, 
        including the administration of any federal funds granted to the 
        state to aid in the performance of any functions of the 
        commissioner as specified in Laws 1939, chapter 431, and 
        including the promulgation of rules making uniformly available 
        medical care benefits to all recipients of public assistance, at 
        such times as the federal government increases its participation 
        in assistance expenditures for medical care to recipients of 
        public assistance, the cost thereof to be borne in the same 
        proportion as are grants of aid to said recipients. 
           (7) Establish and maintain any administrative units 
        reasonably necessary for the performance of administrative 
        functions common to all divisions of the department. 
           (8) Act as designated guardian of both the estate and the 
        person of all the wards of the state of Minnesota, whether by 
        operation of law or by an order of court, without any further 
        act or proceeding whatever, except as to persons committed as 
        mentally retarded.  
           (9) Act as coordinating referral and informational center 
        on requests for service for newly arrived immigrants coming to 
        Minnesota. 
           (10) The specific enumeration of powers and duties as 
        hereinabove set forth shall in no way be construed to be a 
        limitation upon the general transfer of powers herein contained. 
           (11) Establish county, regional, or statewide schedules of 
        maximum fees and charges which may be paid by county agencies 
        for medical, dental, surgical, hospital, nursing and nursing 
        home care and medicine and medical supplies under all programs 
        of medical care provided by the state and for congregate living 
        care under the income maintenance programs. 
           (12) Have the authority to conduct and administer 
        experimental projects to test methods and procedures of 
        administering assistance and services to recipients or potential 
        recipients of public welfare.  To carry out such experimental 
        projects, it is further provided that the commissioner of human 
        services is authorized to waive the enforcement of existing 
        specific statutory program requirements, rules, and standards in 
        one or more counties.  The order establishing the waiver shall 
        provide alternative methods and procedures of administration, 
        shall not be in conflict with the basic purposes, coverage, or 
        benefits provided by law, and in no event shall the duration of 
        a project exceed four years.  It is further provided that no 
        order establishing an experimental project as authorized by the 
        provisions of this section shall become effective until the 
        following conditions have been met: 
           (a) The proposed comprehensive plan, including estimated 
        project costs and the proposed order establishing the waiver, 
        shall be filed with the secretary of the senate and chief clerk 
        of the house of representatives at least 60 days prior to its 
        effective date. 
           (b) The secretary of health, education, and welfare of the 
        United States has agreed, for the same project, to waive state 
        plan requirements relative to statewide uniformity. 
           (c) (b) A comprehensive plan, including estimated project 
        costs, shall be approved by the legislative advisory commission 
        and filed with the commissioner of administration.  
           (13) In accordance with federal requirements, establish 
        procedures to be followed by local welfare boards in creating 
        citizen advisory committees, including procedures for selection 
        of committee members. 
           (14) Allocate federal fiscal disallowances or sanctions 
        which are based on quality control error rates for the aid to 
        families with dependent children, medical assistance, or food 
        stamp program in the following manner:  
           (a) One-half of the total amount of the disallowance shall 
        be borne by the county boards responsible for administering the 
        programs.  For the medical assistance and AFDC programs, 
        disallowances shall be shared by each county board in the same 
        proportion as that county's expenditures for the sanctioned 
        program are to the total of all counties' expenditures for the 
        AFDC and medical assistance programs.  For the food stamp 
        program, sanctions shall be shared by each county board, with 50 
        percent of the sanction being distributed to each county in the 
        same proportion as that county's administrative costs for food 
        stamps are to the total of all food stamp administrative costs 
        for all counties, and 50 percent of the sanctions being 
        distributed to each county in the same proportion as that 
        county's value of food stamp benefits issued are to the total of 
        all benefits issued for all counties.  Each county shall pay its 
        share of the disallowance to the state of Minnesota.  When a 
        county fails to pay the amount due hereunder, the commissioner 
        may deduct the amount from reimbursement otherwise due the 
        county, or the attorney general, upon the request of the 
        commissioner, may institute civil action to recover the amount 
        due. 
           (b) Notwithstanding the provisions of paragraph (a), if the 
        disallowance results from knowing noncompliance by one or more 
        counties with a specific program instruction, and that knowing 
        noncompliance is a matter of official county board record, the 
        commissioner may require payment or recover from the county or 
        counties, in the manner prescribed in paragraph (a), an amount 
        equal to the portion of the total disallowance which resulted 
        from the noncompliance, and may distribute the balance of the 
        disallowance according to paragraph (a).  
           (15) Develop and implement special projects that maximize 
        reimbursements and result in the recovery of money to the 
        state.  For the purpose of recovering state money, the 
        commissioner may enter into contracts with third parties.  Any 
        recoveries that result from projects or contracts entered into 
        under this paragraph shall be deposited in the state treasury 
        and credited to a special account until the balance in the 
        account reaches $1,000,000.  When the balance in the account 
        exceeds $1,000,000, the excess shall be transferred and credited 
        to the general fund.  All money in the account is appropriated 
        to the commissioner for the purposes of this paragraph. 
           (16) Have the authority to make direct payments to 
        facilities providing shelter to women and their children 
        pursuant to section 256D.05, subdivision 3.  Upon the written 
        request of a shelter facility that has been denied payments 
        under section 256D.05, subdivision 3, the commissioner shall 
        review all relevant evidence and make a determination within 30 
        days of the request for review regarding issuance of direct 
        payments to the shelter facility.  Failure to act within 30 days 
        shall be considered a determination not to issue direct payments.
           (17) Have the authority to establish and enforce the 
        following county reporting requirements:  
           (a) The commissioner shall establish fiscal and statistical 
        reporting requirements necessary to account for the expenditure 
        of funds allocated to counties for human services programs.  
        When establishing financial and statistical reporting 
        requirements, the commissioner shall evaluate all reports, in 
        consultation with the counties, to determine if the reports can 
        be simplified or the number of reports can be reduced. 
           (b) The county board shall submit monthly or quarterly 
        reports to the department as required by the commissioner.  
        Monthly reports are due no later than 15 working days after the 
        end of the month.  Quarterly reports are due no later than 30 
        calendar days after the end of the quarter, unless the 
        commissioner determines that the deadline must be shortened to 
        20 calendar days to avoid jeopardizing compliance with federal 
        deadlines or risking a loss of federal funding.  Only reports 
        that are complete, legible, and in the required format shall be 
        accepted by the commissioner.  
           (c) If the required reports are not received by the 
        deadlines established in clause (b), the commissioner may delay 
        payments and withhold funds from the county board until the next 
        reporting period.  When the report is needed to account for the 
        use of federal funds and the late report results in a reduction 
        in federal funding, the commissioner shall withhold from the 
        county boards with late reports an amount equal to the reduction 
        in federal funding until full federal funding is received.  
           (d) A county board that submits reports that are late, 
        illegible, incomplete, or not in the required format for two out 
        of three consecutive reporting periods is considered 
        noncompliant.  When a county board is found to be noncompliant, 
        the commissioner shall notify the county board of the reason the 
        county board is considered noncompliant and request that the 
        county board develop a corrective action plan stating how the 
        county board plans to correct the problem.  The corrective 
        action plan must be submitted to the commissioner within 45 days 
        after the date the county board received notice of noncompliance.
           (e) The final deadline for fiscal reports or amendments to 
        fiscal reports is one year after the date the report was 
        originally due.  If the commissioner does not receive a report 
        by the final deadline, the county board forfeits the funding 
        associated with the report for that reporting period and the 
        county board must repay any funds associated with the report 
        received for that reporting period. 
           (f) The commissioner may not delay payments, withhold 
        funds, or require repayment under paragraph (c) or (e) if the 
        county demonstrates that the commissioner failed to provide 
        appropriate forms, guidelines, and technical assistance to 
        enable the county to comply with the requirements.  If the 
        county board disagrees with an action taken by the commissioner 
        under paragraph (c) or (e), the county board may appeal the 
        action according to sections 14.57 to 14.69. 
           (g) Counties subject to withholding of funds under 
        paragraph (c) or forfeiture or repayment of funds under 
        paragraph (e) shall not reduce or withhold benefits or services 
        to clients to cover costs incurred due to actions taken by the 
        commissioner under paragraph (c) or (e). 
           (18) Allocate federal fiscal disallowances or sanctions for 
        audit exceptions when federal fiscal disallowances or sanctions 
        are based on a statewide random sample for the foster care 
        program under title IV-E of the Social Security Act, United 
        States Code, title 42, in direct proportion to each county's 
        title IV-E foster care maintenance claim for that period. 
           Sec. 41.  Minnesota Statutes 1996, section 256.016, is 
        amended to read: 
           256.016 [PLAIN LANGUAGE IN WRITTEN MATERIALS.] 
           (a) To the extent reasonable and consistent with the goals 
        of providing easily understandable and readable materials and 
        complying with federal and state laws governing the programs, 
        all written materials relating to services and determinations of 
        eligibility for or amounts of benefits that will be given to 
        applicants for or recipients of assistance under a program 
        administered or supervised by the commissioner of human services 
        must be understandable to a person who reads at the 
        seventh-grade level, using the Flesch scale analysis readability 
        score as determined under section 72C.09. 
           (b) All written materials relating to determinations of 
        eligibility for or amounts of benefits that will be given to 
        applicants for or recipients of assistance under programs 
        administered or supervised by the commissioner of human services 
        must be developed to satisfy the plain language requirements of 
        the plain language contract act under sections 325G.29 to 
        325G.36.  Materials may be submitted to the attorney general for 
        review and certification.  Notwithstanding section 325G.35, 
        subdivision 1, the attorney general shall review submitted 
        materials to determine whether they comply with the requirements 
        of section 325G.31.  The remedies available pursuant to sections 
        8.31 and 325G.33 to 325G.36 do not apply to these materials.  
        Failure to comply with this section does not provide a basis for 
        suspending the implementation or operation of other laws 
        governing programs administered by the commissioner. 
           (c) The requirements of this section apply to all materials 
        modified or developed by the commissioner on or after July 1, 
        1988.  The requirements of this section do not apply to 
        materials that must be submitted to a federal agency for 
        approval, to the extent that application of the requirements 
        prevents federal approval. 
           (d) Nothing in this section may be construed to prohibit a 
        lawsuit brought to require the commissioner to comply with this 
        section or to affect individual appeal rights granted pursuant 
        to section 256.045. 
           (e) The commissioner shall report annually to the chairs of 
        the health and human services divisions of the senate finance 
        committee and the house of representatives appropriations 
        committee on the number and outcome of cases that raise the 
        issue of the commissioner's compliance with this section. 
           Sec. 42.  Minnesota Statutes 1996, section 256.736, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [PARTICIPATION.] (a) Except as provided under 
        paragraphs (b) and (c), participation in employment and training 
        services under this section is limited to the following 
        recipients:  
           (1) caretakers who are required to participate in a job 
        search under subdivision 14; 
           (2) custodial parents who are subject to the school 
        attendance or case management participation requirements under 
        subdivision 3b; 
           (3) caretakers whose participation in employment and 
        training services began prior to May 1, 1990, if the caretaker's 
        AFDC eligibility has not been interrupted for 30 days or more 
        and the caretaker's employability development plan has not been 
        completed; 
           (4) recipients who are members of a family in which the 
        youngest child is within two years of being ineligible for AFDC 
        due to age; 
           (5) custodial parents under the age of 24 who:  (i) have 
        not completed a high school education and who, at the time of 
        application for AFDC, were not enrolled in high school or in a 
        high school equivalency program; or (ii) have had little or no 
        work experience in the preceding year; 
           (6) recipients who have received AFDC for 36 or more months 
        out of the last 60 months; 
           (7) recipients who are participants in the self-employment 
        investment demonstration project under section 268.95; and 
           (8) recipients who participate in the new chance research 
        and demonstration project under contract with the department of 
        human services. 
           (b) If the commissioner determines that participation of 
        persons listed in paragraph (a) in employment and training 
        services is insufficient either to meet federal performance 
        targets or to fully utilize funds appropriated under this 
        section, the commissioner may, after notifying the chairs of the 
        senate family services committee, the house health and human 
        services committee, the family services division of the senate 
        family services and health care committees, and the human 
        services division of the house health and human services 
        committee, permit additional groups of recipients to participate 
        until the next meeting of the legislative advisory commission, 
        after which the additional groups may continue to enroll for 
        participation unless the legislative advisory commission 
        disapproves the continued enrollment.  The commissioner shall 
        allow participation of additional groups in the following order 
        only as needed to meet performance targets or fully utilize 
        funding for employment and training services under this section: 
           (1) recipients who have received 24 or more months of AFDC 
        out of the previous 48 months; and 
           (2) recipients who have not completed a high school 
        education or a high school equivalency program. 
           (c) To the extent of money appropriated specifically for 
        this paragraph, the commissioner may permit AFDC caretakers who 
        are not eligible for participation in employment and training 
        services under the provisions of paragraph (a) or (b) to 
        participate.  Money must be allocated to county agencies based 
        on the county's percentage of participants statewide in services 
        under this section in the prior calendar year.  Caretakers must 
        be selected on a first-come, first-served basis from a waiting 
        list of caretakers who volunteer to participate.  The 
        commissioner may, on a quarterly basis, reallocate unused 
        allocations to county agencies that have sufficient volunteers.  
        If funding under this paragraph is discontinued in future fiscal 
        years, caretakers who began participating under this paragraph 
        must be deemed eligible under paragraph (a), clause (3). 
           (d) Participants who are eligible and enroll in the STRIDE 
        program under one of the categories of this subdivision are 
        required to cooperate with the assessment and employability plan 
        development and to meet the terms of their employability plan.  
        Failure to comply, without good cause, shall result in the 
        imposition of sanctions as specified in subdivision 4, clause 
        (6). 
           Sec. 43.  Minnesota Statutes 1996, section 256.7365, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DEMONSTRATION AND EVALUATION.] For the biennium 
        ending June 30, 1989, projects are demonstration projects to 
        test the effectiveness of differing approaches to serving 
        populations with acute needs.  The commissioner of human 
        services shall submit to the governor and the legislature a 
        progress report by February 1, 1989, and shall submit subsequent 
        program evaluation reports to the governor as part of the 
        biennial plan. 
           Sec. 44.  Minnesota Statutes 1996, section 256.9742, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES.] The ombudsman shall: 
           (1) gather information and evaluate any act, practice, 
        policy, procedure, or administrative action of a long-term care 
        facility, acute care facility, home care service provider, or 
        government agency that may adversely affect the health, safety, 
        welfare, or rights of any client; 
           (2) mediate or advocate on behalf of clients; 
           (3) monitor the development and implementation of federal, 
        state, or local laws, rules, regulations, and policies affecting 
        the rights and benefits of clients; 
           (4) comment on and recommend to the legislature and public 
        and private agencies regarding laws, rules, regulations, and 
        policies affecting clients; 
           (5) inform public agencies about the problems of clients; 
           (6) provide for training of volunteers and promote the 
        development of citizen participation in the work of the office; 
           (7) conduct public forums to obtain information about and 
        publicize issues affecting clients; 
           (8) provide public education regarding the health, safety, 
        welfare, and rights of clients; and 
           (9) collect and analyze data relating to complaints, 
        conditions, and services. 
           Sec. 45.  Minnesota Statutes 1996, section 256D.04, is 
        amended to read: 
           256D.04 [DUTIES OF THE COMMISSIONER.] 
           In addition to any other duties imposed by law, the 
        commissioner shall: 
           (1) Supervise according to section 256.01 the 
        administration of general assistance and general assistance 
        medical care by county agencies as provided in sections 256D.01 
        to 256D.21; 
           (2) Promulgate uniform rules consistent with law for 
        carrying out and enforcing the provisions of sections 256D.01 to 
        256D.21, including section 256D.05, subdivision 3, and section 
        256.01, subdivision 2, paragraph (16), to the end that general 
        assistance may be administered as uniformly as possible 
        throughout the state; rules shall be furnished immediately to 
        all county agencies and other interested persons; in 
        promulgating rules, the provisions of sections 14.001 to 14.69, 
        shall apply; 
           (3) Allocate money appropriated for general assistance and 
        general assistance medical care to county agencies as provided 
        in section 256D.03, subdivisions 2 and 3; 
           (4) Accept and supervise the disbursement of any funds that 
        may be provided by the federal government or from other sources 
        for use in this state for general assistance and general 
        assistance medical care; 
           (5) Cooperate with other agencies including any agency of 
        the United States or of another state in all matters concerning 
        the powers and duties of the commissioner under sections 256D.01 
        to 256D.21; 
           (6) Cooperate to the fullest extent with other public 
        agencies empowered by law to provide vocational training, 
        rehabilitation, or similar services; 
           (7) Gather and study current information and report at 
        least annually to the governor and legislature on the nature and 
        need for general assistance and general assistance medical care, 
        the amounts expended under the supervision of each county 
        agency, and the activities of each county agency and publish 
        such reports for the information of the public; 
           (8) Specify requirements for general assistance and general 
        assistance medical care reports, including fiscal reports, 
        according to section 256.01, subdivision 2, paragraph (17); and 
           (9) Ensure that every notice of eligibility for general 
        assistance includes a notice that women who are pregnant may be 
        eligible for medical assistance benefits. 
           Sec. 46.  Minnesota Statutes 1996, section 256E.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  The commissioner shall prepare a biennial 
        social services plan and present the plan to the governor and 
        the legislature.  The commissioner shall update the plan 
        biennially.  The plan shall include: 
           (a) a description of state social service programs and 
        priorities; 
           (b) an overview of all county biennial community social 
        services plans; 
           (c) identification of social services program requirements 
        which counties have identified as unnecessarily administratively 
        burdensome; 
           (d) identification of social services program requirements 
        for which inadequate state and local funding is available; and 
           (e) identification of unmet needs reported by the county 
        agencies. 
           The commissioner shall consult with the heads of human 
        service related state departments and agencies in preparing the 
        coordination statement required by this subdivision. 
           Sec. 47.  Minnesota Statutes 1996, section 256F.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MONITORING.] The commissioner shall design and 
        implement methods for monitoring the delivery and evaluating the 
        effectiveness of placement prevention and family reunification 
        services.  The commissioner shall monitor the provision of 
        family-based services, and conduct evaluations, and prepare and 
        submit biannual reports to the legislature. 
           Sec. 48.  Minnesota Statutes 1996, section 260.181, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [REPORTS; JUVENILES PLACED OUT OF STATE.] (a) 
        Whenever a child is placed in a residential program located 
        outside of this state pursuant to a disposition order issued 
        under section 260.185 or 260.191, the juvenile court 
        administrator shall report the following information to the 
        state court administrator: 
           (1) the fact that the placement is out of state; 
           (2) the type of placement; and 
           (3) the reason for the placement. 
           (b) By July 1, 1994, and each year thereafter, the state 
        court administrator shall file a report with the legislature 
        containing the information reported under paragraph (a) during 
        the previous calendar year. 
           Sec. 49.  Minnesota Statutes 1996, section 290.171, is 
        amended to read: 
           290.171 [ENACTMENT OF MULTISTATE TAX COMPACT.] 
           The "multistate tax compact" is hereby enacted into law to 
        the extent provided in this section and entered into with all 
        jurisdictions legally joining therein, in the form substantially 
        as follows:  
                             Article I.  Purposes. 
           The purposes of this compact are to:  
           1.  Facilitate proper determination of state and local tax 
        liability of multistate taxpayers, including the equitable 
        apportionment of tax bases and settlement of apportionment 
        disputes.  
           2.  Promote uniformity or compatibility in significant 
        components of tax systems.  
           3.  Facilitate taxpayer convenience and compliance in the 
        filing of tax returns and in other phases of tax administration. 
           4.  Avoid duplicative taxation.  
                           Article II.  Definitions. 
           As used in this compact:  
           1.  "State" means a state of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, or any 
        territory or possession of the United States.  
           2.  "Subdivision" means any governmental unit or special 
        district of a state.  
           3.  "Taxpayer" means any corporation, partnership, firm, 
        association, governmental unit or agency or person acting as a 
        business entity in more than one state.  
           4.  "Income tax" means a tax imposed on or measured by net 
        income including any tax imposed on or measured by an amount 
        arrived at by deducting expenses from gross income, one or more 
        forms of which expenses are not specifically and directly 
        related to particular transactions.  
           5.  "Capital stock tax" means a tax measured in any way by 
        the capital of a corporation considered in its entirety.  
           6.  "Gross receipts tax" means a tax, other than a sales 
        tax, which is imposed on or measured by the gross volume of 
        business, in terms of gross receipts or in other terms, and in 
        the determination of which no deduction is allowed which would 
        constitute the tax an income tax.  
           7.  "Sales tax" means a tax imposed with respect to the 
        transfer for a consideration of ownership, possession or custody 
        of tangible personal property or the rendering of services 
        measured by the price of the tangible personal property 
        transferred or services rendered and which is required by state 
        or local law to be separately stated from the sales price by the 
        seller, or which is customarily separately stated from the sales 
        price, but does not include a tax imposed exclusively on the 
        sale of a specifically identified commodity or article or class 
        of commodities or articles.  
           8.  "Use tax" means a nonrecurring tax, other than a sales 
        tax, which (a) is imposed on or with respect to the exercise or 
        enjoyment of any right or power over tangible personal property 
        incident to the ownership, possession or custody of that 
        property or the leasing of that property from another including 
        any consumption, keeping, retention, or other use of tangible 
        personal property and (b) is complementary to a sales tax.  
           9.  "Tax" means an income tax, capital stock tax, gross 
        receipts tax, sales tax, use tax, and any other tax which has a 
        multistate impact, except that the provisions of article V of 
        this compact shall apply only to the taxes specifically 
        designated therein.  
                   Article III.  Elements of Income Tax Laws.
                        Article IV.  Division of Income.
                Article V.  Elements of Sales and Use Tax Laws. 
                                  Tax Credit. 
           1.  Each purchaser liable for a use tax on tangible 
        personal property shall be entitled to full credit for the 
        combined amount or amounts of legally imposed sales or use taxes 
        paid by him with respect to the same property to another state 
        and any subdivision thereof.  The credit shall be applied first 
        against the amount of any use tax due the state, and any unused 
        portion of the credit shall then be applied against the amount 
        of any use tax due a subdivision. 
           2.  Whenever a vendor receives and accepts in good faith 
        from a purchaser a resale or other exemption certificate or 
        other written evidence of exemption authorized by the 
        appropriate state or subdivision taxing authority, the vendor 
        shall be relieved of liability for a sales or use tax with 
        respect to the transaction.  
                          Article VI.  The Commission. 
                          Organization and Management. 
           1.  (a) The multistate tax commission is hereby 
        established.  It shall be composed of one "member" from each 
        party state who shall be the head of the state agency charged 
        with the administration of the types of taxes to which this 
        compact applies.  If there is more than one such agency the 
        state shall provide by law for the selection of the commission 
        member from the heads of the relevant agencies.  State law may 
        provide that a member of the commission be represented by an 
        alternate but only if there is on file with the commission 
        written notification of the designation and identity of the 
        alternate.  The attorney general of each party state or his 
        designee, or other counsel if the laws of the party state 
        specifically provide, shall be entitled to attend the meetings 
        of the commission, but shall not vote.  Such attorneys general, 
        designees, or other counsel shall receive all notices of 
        meetings required under paragraph 1(e) of this article.  
           (b) Each party state shall provide by law for the selection 
        of representatives from its subdivisions affected by this 
        compact to consult with the commission member from that state.  
           (c) Each member shall be entitled to one vote.  The 
        commission shall not act unless a majority of the members are 
        present, and no action shall be binding unless approved by a 
        majority of the total number of members.  
           (d) The commission shall adopt an official seal to be used 
        as it may provide.  
           (e) The commission shall hold an annual meeting and such 
        other regular meetings as its bylaws may provide and such 
        special meetings as its executive committee may determine.  The 
        commission bylaws shall specify the dates of the annual and any 
        other regular meetings, and shall provide for the giving of 
        notice of annual, regular and special meetings.  Notices of 
        special meetings shall include the reasons therefor and an 
        agenda of the items to be considered.  
           (f) The commission shall elect annually, from among its 
        members, a chairman, a vice-chairman and a treasurer.  The 
        commission shall appoint an executive director who shall serve 
        at its pleasure, and it shall fix his duties and compensation. 
        The executive director shall be secretary of the commission.  
        The commission shall make provision for the bonding of such of 
        its officers and employees as it may deem appropriate.  
           (g) Irrespective of the civil service, personnel or other 
        merit system laws of any party state, the executive director 
        shall appoint or discharge such personnel as may be necessary 
        for the performance of the functions of the commission and shall 
        fix their duties and compensation.  The commission bylaws shall 
        provide for personnel policies and programs.  
           (h) The commission may borrow, accept or contract for the 
        services of personnel from any state, the United States, or any 
        other governmental entity.  
           (i) The commission may accept for any of its purposes and 
        functions any and all donations and grants of money, equipment, 
        supplies, materials and services, conditional or otherwise, from 
        any governmental entity, and may utilize and dispose of the same.
           (j) The commission may establish one or more offices for 
        the transacting of its business.  
           (k) The commission shall adopt bylaws for the conduct of 
        its business.  The commission shall publish its bylaws in 
        convenient form, and shall file a copy of the bylaws and any 
        amendments thereto with the appropriate agency or officer in 
        each of the party states.  
           (l) The commission annually shall make to the governor and 
        legislature of each party state a report covering its activities 
        for the preceding year.  Any donation or grant accepted by the 
        commission or services borrowed shall be reported in the annual 
        report of the commission, and shall include the nature, amount 
        and conditions, if any, of the donation, gift, grant or services 
        borrowed and the identity of the donor or lender.  The 
        commission may make additional reports as it may deem desirable. 
                                  Committees. 
           2.  (a) To assist in the conduct of its business when the 
        full commission is not meeting, the commission shall have an 
        executive committee of seven members, including the chairman, 
        vice chairman, treasurer and four other members elected annually 
        by the commission.  The executive committee, subject to the 
        provisions of this compact and consistent with the policies of 
        the commission, shall function as provided in the bylaws of the 
        commission.  
           (b) The commission may establish advisory and technical 
        committees, membership on which may include private persons and 
        public officials, in furthering any of its activities.  Such 
        committees may consider any matter of concern to the commission, 
        including problems of special interest to any party state and 
        problems dealing with particular types of taxes.  
           (c) The commission may establish such additional committees 
        as its bylaws may provide.  
                                    Powers. 
           3.  In addition to powers conferred elsewhere in this 
        compact, the commission shall have power to:  
           (a) Study state and local tax systems and particular types 
        of state and local taxes.  
           (b) Develop and recommend proposals for an increase in 
        uniformity or compatibility of state and local tax laws with a 
        view toward encouraging the simplification and improvement of 
        state and local tax law and administration.  
           (c) Compile and publish information as in its judgment 
        would assist the party states in implementation of the compact 
        and taxpayers in complying with state and local tax laws.  
           (d) Do all things necessary and incidental to the 
        administration of its functions pursuant to this compact.  
                                    Finance. 
           4.  (a) The commission shall submit to the governor or 
        designated officer or officers of each party state a budget of 
        its estimated expenditures for such period as may be required by 
        the laws of that state for presentation to the legislature 
        thereof.  
           (b) Each of the commission's budgets of estimated 
        expenditures shall contain specific recommendations of the 
        amounts to be appropriated by each of the party states.  The 
        total amount of appropriations requested under any such budget 
        shall be apportioned among the party states as follows: 
        one-tenth in equal shares; and the remainder in proportion to 
        the amount of revenue collected by each party state and its 
        subdivisions from income taxes, capital stock taxes, gross 
        receipts taxes, sales and use taxes.  In determining such 
        amounts, the commission shall employ such available public 
        sources of information as, in its judgment, present the most 
        equitable and accurate comparisons among the party states.  Each 
        of the commission's budgets of estimated expenditures and 
        requests for appropriations shall indicate the sources used in 
        obtaining information employed in applying the formula contained 
        in this paragraph.  
           (c) The commission shall not pledge the credit of any party 
        state.  The commission may meet any of its obligations in whole 
        or in part with funds available to it under paragraph 1(i) of 
        this article, provided that the commission takes specific action 
        setting aside such funds prior to incurring any obligation to be 
        met in whole or in part in such manner.  Except where the 
        commission makes use of funds available to it under paragraph 
        1(i), the commission shall not incur any obligation prior to the 
        allotment of funds by the party states adequate to meet the same.
           (d) The commission shall keep accurate accounts of all 
        receipts and disbursements.  The receipts and disbursements of 
        the commission shall be subject to the audit and accounting 
        procedures established under its bylaws.  All receipts and 
        disbursements of funds handled by the commission shall be 
        audited yearly by a certified or licensed public accountant and 
        the report of the audit shall be included in and become part of 
        the annual report of the commission.  
           (e) The accounts of the commission shall be open at any 
        reasonable time for inspection by duly constituted officers of 
        the party states and by any persons authorized by the commission.
           (f) Nothing contained in this article shall be construed to 
        prevent commission compliance with laws relating to audit or 
        inspection of accounts by or on behalf of any government 
        contributing to the support of the commission.  
                  Article VII.  Uniform Regulations and Forms. 
           1.  Whenever any two or more party states, or subdivisions 
        of party states, have uniform or similar provisions of law 
        relating to an income tax, capital stock tax, gross receipts 
        tax, sales or use tax, the commission may adopt uniform 
        regulations for any phase of the administration of such law, 
        including assertion of jurisdiction to tax, or prescribing 
        uniform tax forms.  
           2.  Prior to the adoption of any regulation, the commission 
        shall:  
           (a) As provided in its bylaws, hold at least one public 
        hearing on due notice to all affected party states and 
        subdivisions thereof and to all taxpayers and other persons who 
        have made timely request of the commission for advance notice of 
        its regulation-making proceedings.  
           (b) Afford all affected party states and subdivisions and 
        interested persons an opportunity to submit relevant written 
        data and views, which shall be considered fully by the 
        commission.  
           3.  The commission shall submit any regulations adopted by 
        it to the appropriate officials of all party states and 
        subdivisions to which they might apply.  Each such state and 
        subdivision shall consider any such regulation for adoption in 
        accordance with its own laws and procedures.  
                       Article VIII.  Interstate Audits. 
           1.  Any party state or subdivision thereof desiring to make 
        or participate in an audit of any accounts, books, papers, 
        records or other documents may request the commission to perform 
        the audit on its behalf.  In responding to the request, the 
        commission shall have access to and may examine, at any 
        reasonable time, such accounts, books, papers, records, and 
        other documents and any relevant property or stock of 
        merchandise.  The commission may enter into agreements with 
        party states or their subdivisions for assistance in performance 
        of the audit.  The commission shall make charges, to be paid by 
        the state or local government or governments for which it 
        performs the service, for any audits performed by it in order to 
        reimburse itself for the actual costs incurred in making the 
        audit.  
           2.  The commission may require the attendance of any person 
        within the state where it is conducting an audit or part thereof 
        at a time and place fixed by it within such state for the 
        purpose of giving testimony with respect to any account, book, 
        paper, document, other record, property or stock of merchandise 
        being examined in connection with the audit.  If the person is 
        not within the jurisdiction, he may be required to attend for 
        such purpose at any time and place fixed by the commission 
        within the state of which he is a resident, provided that such 
        state has adopted this article.  
           3.  The commission may apply to any court having power to 
        issue compulsory process for orders in aid of its powers and 
        responsibilities pursuant to this article and any and all such 
        courts shall have jurisdiction to issue such orders.  Failure of 
        any person to obey any such order shall be punishable as 
        contempt of the issuing court.  If the party or subject matter 
        on account of which the commission seeks an order is within the 
        jurisdiction of the court to which application is made, such 
        application may be to a court in the state or subdivision on 
        behalf of which the audit is being made or a court in the state 
        in which the object of the order being sought is situated.  The 
        provisions of this paragraph apply only to courts in a state 
        that has adopted this article.  
           4.  The commission may decline to perform any audit 
        requested if it finds that its available personnel or other 
        resources are insufficient for the purpose or that, in the terms 
        requested, the audit is impracticable of satisfactory 
        performance.  If the commission, on the basis of its experience, 
        has reason to believe that an audit of a particular taxpayer, 
        either at a particular time or on a particular schedule, would 
        be of interest to a number of party states or their 
        subdivisions, it may offer to make the audit or audits, the 
        offer to be contingent on sufficient participation therein as 
        determined by the commission.  
           5.  Information obtained by any audit pursuant to this 
        article shall be confidential and available only for tax 
        purposes to party states, their subdivisions or the United 
        States.  Availability of information shall be in accordance with 
        the laws of the states or subdivisions on whose account the 
        commission performs the audit, and only through the appropriate 
        agencies or officers of such states or subdivisions.  Nothing in 
        this article shall be construed to require any taxpayer to keep 
        records for any period not otherwise required by law.  
           6.  Other arrangements made or authorized pursuant to law 
        for cooperative audit by or on behalf of the party states or any 
        of their subdivisions are not superseded or invalidated by this 
        article.  
           7.  In no event shall the commission make any charge 
        against a taxpayer for an audit.  
           8.  As used in this article, "tax," in addition to the 
        meaning ascribed to it in article II, means any tax or license 
        fee imposed in whole or in part for revenue purposes.  
                           Article IX.  Arbitration. 
           1.  Whenever the commission finds a need for settling 
        disputes concerning apportionments and allocations by 
        arbitration, it may adopt a regulation placing this article in 
        effect, notwithstanding the provisions of article VII.  
           2.  The commission shall select and maintain an arbitration 
        panel composed of officers and employees of state and local 
        governments and private persons who shall be knowledgeable and 
        experienced in matters of tax law and administration.  
           3.  Whenever the laws of the party states or subdivisions 
        thereof are substantially identical with the relevant provisions 
        of this chapter, the taxpayer, by written notice to the 
        commission and to each party state or subdivision thereof that 
        would be affected, may secure arbitration of an apportionment or 
        allocation, if he is dissatisfied with the final administrative 
        determination of the tax agency of the state or subdivision with 
        respect thereto on the ground that it would subject him to 
        double or multiple taxation by two or more party states or 
        subdivisions thereof.  Each party state and subdivision thereof 
        hereby consents to the arbitration as provided herein, and 
        agrees to be bound thereby.  
           4.  The arbitration board shall be composed of one person 
        selected by the taxpayer, one by the agency or agencies 
        involved, and one member of the commission's arbitration panel. 
        If the agencies involved are unable to agree on the person to be 
        selected by them, such person shall be selected by lot from the 
        total membership of the arbitration panel.  The two persons 
        selected for the board in the manner provided by the foregoing 
        provisions of this paragraph shall jointly select the third 
        member of the board.  If they are unable to agree on the 
        selection, the third member shall be selected by lot from among 
        the total membership of the arbitration panel.  No member of a 
        board selected by lot shall be qualified to serve if he is an 
        officer or employee or is otherwise affiliated with any party to 
        the arbitration proceeding.  Residence within the jurisdiction 
        of a party to the arbitration proceeding shall not constitute 
        affiliation within the meaning of this paragraph.  
           5.  The board may sit in any state or subdivision party to 
        the proceeding, in the state of the taxpayer's incorporation, 
        residence or domicile, in any state where the taxpayer does 
        business, or in any place that it finds most appropriate for 
        gaining access to evidence relevant to the matter before it.  
           6.  The board shall give due notice of the times and places 
        of its hearings.  The parties shall be entitled to be heard, to 
        present evidence, and to examine and cross-examine witnesses. 
        The board shall act by majority vote.  
           7.  The board shall have power to administer oaths, take 
        testimony, subpoena and require the attendance of witnesses and 
        the production of accounts, books, papers, records, and other 
        documents, and issue commissions to take testimony.  Subpoenas 
        may be signed by any member of the board.  In case of failure to 
        obey a subpoena, and upon application by the board, any judge of 
        a court of competent jurisdiction of the state in which the 
        board is sitting or in which the person to whom the subpoena is 
        directed may be found may make an order requiring compliance 
        with the subpoena, and the court may punish failure to obey the 
        order as a contempt.  The provisions of this paragraph apply 
        only in states that have adopted this article.  
           8.  Unless the parties otherwise agree the expenses and 
        other costs of the arbitration shall be assessed and allocated 
        among the parties by the board in such manner as it may 
        determine.  The commission shall fix a schedule of compensation 
        for members of arbitration boards and of other allowable 
        expenses and costs.  No officer or employee of a state or local 
        government who serves as a member of a board shall be entitled 
        to compensation therefor unless he is required on account of his 
        service to forego the regular compensation attaching to his 
        public employment, but any such board member shall be entitled 
        to expenses.  
           9.  The board shall determine the disputed apportionment or 
        allocation and any matters necessary thereto.  The 
        determinations of the board shall be final for purposes of 
        making the apportionment or allocation, but for no other purpose.
           10.  The board shall file with the commission and with each 
        tax agency represented in the proceeding:  the determination of 
        the board; the board's written statement of its reasons 
        therefor; the record of the board's proceedings; and any other 
        documents required by the arbitration rules of the commission to 
        be filed.  
           11.  The commission shall publish the determinations of 
        boards together with the statements of the reasons therefor.  
           12.  The commission shall adopt and publish rules of 
        procedure and practice and shall file a copy of such rules and 
        of any amendment thereto with the appropriate agency or officer 
        in each of the party states.  
           13.  Nothing contained herein shall prevent at any time a 
        written compromise of any matter or matters in dispute, if 
        otherwise lawful, by the parties to the arbitration proceedings. 
                  Article X.  Entry Into Force and Withdrawal. 
           1.  This compact shall become effective as to any other 
        state upon its enactment.  The commission shall arrange for 
        notification of all party states whenever there is a new 
        enactment of the compact.  
           2.  Any party state may withdraw from this compact by 
        enacting a statute repealing the same.  No withdrawal shall 
        affect any liability already incurred by or chargeable to a 
        party state prior to the time of such withdrawal.  
           3.  No proceeding commenced before an arbitration board 
        prior to the withdrawal of a state and to which the withdrawing 
        state or any subdivision thereof is a party shall be 
        discontinued or terminated by the withdrawal, nor shall the 
        board thereby lose jurisdiction over any of the parties to the 
        proceeding necessary to make a binding determination therein.  
              Article XI.  Effect on Other Laws and Jurisdictions. 
           Nothing in this compact shall be construed to:  
           (a) Affect the power of any state or subdivision thereof to 
        fix rates of taxation.  
           (b) Apply to any tax or fixed fee imposed for the 
        registration of a motor vehicle or any tax on motor fuel, other 
        than a sales tax, provided that the definition of "tax" in 
        article VIII 9 may apply for the purposes of that article and 
        the commission's powers of study and recommendation pursuant to 
        article VI 3 may apply.  
           (c) Withdraw or limit the jurisdiction of any state or 
        local court or administrative officer or body with respect to 
        any person, corporation or other entity or subject matter, 
        except to the extent that such jurisdiction is expressly 
        conferred by or pursuant to this compact upon another agency or 
        body.  
           (d) Supersede or limit the jurisdiction of any court of the 
        United States.  
                  Article XII.  Construction and Severability. 
           This compact shall be liberally construed so as to 
        effectuate the purposes thereof.  The provisions of this compact 
        shall be severable and if any phrase, clause, sentence, or 
        provision of this compact is declared to be contrary to the 
        constitution of any state or of the United States or the 
        applicability thereof to any government, agency, person or 
        circumstance is held invalid, the validity of the remainder of 
        this compact and the applicability thereof to any government, 
        agency, person or circumstance shall not be affected thereby.  
        If this compact shall be held contrary to the constitution of 
        any state participating therein, the compact shall remain in 
        full force and effect as to the remaining party states and in 
        full force and effect as to the state affected as to all 
        severable matters.  
           Sec. 50.  Minnesota Statutes 1996, section 299F.051, 
        subdivision 3, is amended to read: 
           Subd. 3.  [IN-SERVICE TRAINING.] The state fire marshal and 
        the superintendent of the bureau of criminal apprehension, in 
        cooperation with the Minnesota board of peace officer standards 
        and training, shall encourage the establishment of in-service 
        and refresher training for firefighters and peace officers 
        through schools administered by the state, county, school 
        district, municipality, or joint or contractual combinations 
        thereof.  The Minnesota board of peace officers standards and 
        training shall report to the governor and legislature on the 
        progress made in this effort as provided in section 626.843. 
           Sec. 51.  Minnesota Statutes 1996, section 360.015, 
        subdivision 17, is amended to read: 
           Subd. 17.  [REPORT TO GOVERNOR.] On or before October 1 in 
        every even-numbered year the commissioner shall make to the 
        governor a full report of the proceedings of the department for 
        the preceding two fiscal years, together with the commissioner's 
        recommendations pertaining to the affairs of the department.  
        The governor shall transmit this report to the legislature by 
        November 15 of each even-numbered year. 
           Sec. 52.  Minnesota Statutes 1996, section 363.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORMULATION OF POLICIES.] The commissioner 
        shall formulate policies to effectuate the purposes of this 
        chapter and shall: 
           (1) exercise leadership under the direction of the governor 
        in the development of human rights policies and programs, and 
        make recommendations to the governor and the legislature for 
        their consideration and implementation; 
           (2) establish and maintain a principal office in St. Paul, 
        and any other necessary branch offices at any location within 
        the state; 
           (3) meet and function at any place within the state; 
           (4) employ attorneys, clerks, and other employees and 
        agents as the commissioner may deem necessary and prescribe 
        their duties; 
           (5) to the extent permitted by federal law and regulation, 
        utilize the records of the department of economic security of 
        the state when necessary to effectuate the purposes of this 
        chapter; 
           (6) obtain upon request and utilize the services of all 
        state governmental departments and agencies; 
           (7) adopt suitable rules for effectuating the purposes of 
        this chapter; 
           (8) issue complaints, receive and investigate charges 
        alleging unfair discriminatory practices, and determine whether 
        or not probable cause exists for hearing; 
           (9) subpoena witnesses, administer oaths, take testimony, 
        and require the production for examination of any books or 
        papers relative to any matter under investigation or in 
        question; 
           (10) attempt, by means of education, conference, 
        conciliation, and persuasion to eliminate unfair discriminatory 
        practices as being contrary to the public policy of the state; 
           (11) develop and conduct programs of formal and informal 
        education designed to eliminate discrimination and intergroup 
        conflict by use of educational techniques and programs the 
        commissioner deems necessary; 
           (12) make a written report of the activities of the 
        commissioner to the governor each year and to the legislature by 
        November 15 of each even-numbered year; 
           (13) accept gifts, bequests, grants or other payments 
        public and private to help finance the activities of the 
        department; 
           (14) create such local and statewide advisory committees as 
        will in the commissioner's judgment aid in effectuating the 
        purposes of the department of human rights; 
           (15) develop such programs as will aid in determining the 
        compliance throughout the state with the provisions of this 
        chapter, and in the furtherance of such duties, conduct research 
        and study discriminatory practices based upon race, color, 
        creed, religion, national origin, sex, age, disability, marital 
        status, status with regard to public assistance, familial 
        status, sexual orientation, or other factors and develop 
        accurate data on the nature and extent of discrimination and 
        other matters as they may affect housing, employment, public 
        accommodations, schools, and other areas of public life; 
           (16) develop and disseminate technical assistance to 
        persons subject to the provisions of this chapter, and to 
        agencies and officers of governmental and private agencies; 
           (17) provide staff services to such advisory committees as 
        may be created in aid of the functions of the department of 
        human rights; 
           (18) make grants in aid to the extent that appropriations 
        are made available for that purpose in aid of carrying out 
        duties and responsibilities; and 
           (19) cooperate and consult with the commissioner of labor 
        and industry regarding the investigation of violations of, and 
        resolution of complaints regarding section 363.03, subdivision 9.
           In performing these duties, the commissioner shall give 
        priority to those duties in clauses (8), (9), and (10) and to 
        the duties in section 363.073.  
           Sec. 53.  Minnesota Statutes 1996, section 383A.43, 
        subdivision 6, is amended to read: 
           Subd. 6.  [MINUTES; REPORTS TO LEGISLATURE.] The committee 
        shall keep minutes of its meetings which are open to the 
        public.  It shall make a periodic report to members of the 
        delegation from the county in the legislature and shall keep 
        them fully informed on each matter that comes before the 
        committee, the action taken thereon, and the progress made in 
        relation thereto.  At least 30 days before each biennial 
        legislative session, the committee shall make a written report 
        summarizing its activities, investigations, surveys and findings 
        of facts to the members of the legislature from the county and 
        to the public.  
           Sec. 54.  Minnesota Statutes 1996, section 458A.08, is 
        amended to read: 
           458A.08 [COMMISSION; ANNUAL REPORTS.] 
           The commission on or before November 30, 1969, and annually 
        thereafter, shall prepare a report for the preceding fiscal 
        year, also, so far as practicable, for the further time up to 
        the preparation of the report, containing, in addition to such 
        other matters as the commission may deem proper, the following: 
           (a) the activities of the commission during the period 
        covered by the report; 
           (b) the financial condition of public transit systems under 
        the control of the commission; 
           (c) a complete financial accounting of moneys received and 
        spent by the commission during the fiscal year; 
           (d) recommendations for improvements of or additions to the 
        mass transit facilities of the area to provide adequate, speedy, 
        and efficient means of transporting people therein; 
           (e) recommendations for any needed legislation in 
        furtherance of the aforesaid purposes. 
           Each report shall be filed with the secretary of the 
        commission and a copy shall be filed with the secretary of 
        state.  Copies shall also be submitted to the legislature at the 
        opening of each regular session after July 1, 1969, and shall be 
        distributed annually to the governor and to each member of the 
        legislature under section 3.195, each county commission, and 
        each elected chief executive of each municipality in the transit 
        area. 
           Sec. 55.  Minnesota Statutes 1996, section 462A.07, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RECOMMENDATIONS TO GOVERNOR AND LEGISLATURE.] It 
        may survey and investigate the housing conditions and needs, 
        both urban and rural, throughout the state and make 
        recommendations to the governor and the legislature as to 
        legislation and other measures necessary or advisable to 
        alleviate any existing housing shortage in the state. 
           Sec. 56.  Minnesota Statutes 1996, section 473.1623, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FINANCIAL REPORT.] By December 15 of 
        even-numbered years, the council, in consultation with the 
        advisory committee, shall publish a consolidated financial 
        report for the council and all metropolitan agencies and their 
        functions, services, and systems.  The financial report must 
        cover the calendar year in which the report is published and the 
        two years preceding and three years succeeding that year.  The 
        financial report must contain the following information, for 
        each agency, function, or system, respectively, and in the 
        aggregate, in a consistent format that allows comparison over 
        time and among agencies in expenditure and revenue categories: 
           (1) financial policies, goals, and priorities; 
           (2) levels and allocation of public expenditure, including 
        capital, debt, operating, and pass-through funds, stated in the 
        aggregate and by appropriate functional, programmatic, 
        administrative, and geographic categories, and the changes in 
        expenditure levels and allocations that the report represents; 
           (3) the resources available under existing fiscal policy; 
           (4) additional resources, if any, that are or may be 
        required; 
           (5) changes in council or agency policies on regional 
        sources of revenue and in levels of debt, user charges, and 
        taxes; 
           (6) other changes in existing fiscal policy, on regional 
        revenues and intergovernmental aids respectively, that are 
        expected or that have been or may be recommended by the council 
        or the respective agencies; 
           (7) an analysis that links, as far as practicable, the uses 
        of funds and the sources of funds, by appropriate categories and 
        in the aggregate; 
           (8) a description of how the fiscal policies effectuate 
        current policy and implementation plans of the council and 
        agencies concerned; and 
           (9) a summary of significant changes in council and agency 
        finance and an analysis of fiscal trends. 
           The council shall present the report for discussion and 
        comment at a public meeting in the metropolitan area and 
        request, in writing, an opportunity to make presentations on the 
        report before appropriate committees of the legislature. 
           Sec. 57.  Minnesota Statutes 1996, section 473.1623, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FINANCIAL REPORTING; BUDGETING.] The advisory 
        committee, with the assistance of the state auditor and the 
        legislative auditor, shall develop uniform or consistent 
        standards, formats, and procedures for the budgets and financial 
        reports of the council and all metropolitan agencies.  The 
        council shall report to the legislature from time to time on 
        progress made by the committee in improving the uniformity and 
        quality of budgets and financial reports and on legislation that 
        may be needed for this purpose.  
           Sec. 58.  Minnesota Statutes 1996, section 473.1623, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ADMINISTRATIVE COORDINATION.] The advisory 
        committee shall evaluate the benefits, costs, methods, and 
        effects, including operational effects, of joint or uniform and 
        coordinated exercise of powers by the council and metropolitan 
        agencies for appropriate administrative functions.  The study 
        must include at least ongoing managerial reporting, contracts, 
        purchasing, data processing, and personnel.  The council shall 
        report to the legislature from time to time on the findings and 
        recommendations of the advisory committee to date and on legal 
        and other impediments to increased coordination of 
        administrative functions.  Before submitting the report, the 
        council shall request comments on the report from the affected 
        metropolitan agencies, and the comments must be submitted along 
        with the report. 
           Sec. 59.  Minnesota Statutes 1996, section 473.3994, 
        subdivision 9, is amended to read: 
           Subd. 9.  [LIGHT RAIL TRANSIT OPERATING COSTS.] (a) Before 
        submitting an application for federal assistance for light rail 
        transit facilities in the metropolitan area, the applicant must 
        provide to the metropolitan council estimates of the amount of 
        operating subsidy which will be required to operate light rail 
        transit in the corridor to which the federal assistance would be 
        applied.  The information provided to the council must indicate 
        the amount of operating subsidy estimated to be required in each 
        of the first ten years of operation of the light rail transit 
        facility. 
           (b) The council must review and evaluate the information 
        provided under paragraph (a) with regard to the effect of 
        operating the light rail transit facility on the currently 
        available mechanisms for financing transit in the metropolitan 
        area. 
           (c) The council must present its evaluation to the 
        transportation and taxes committees of the house and senate, to 
        the appropriations committee of the house and the finance 
        committee of the senate, to the local government and 
        metropolitan affairs committee of the house, and to the 
        metropolitan affairs committee of the senate. 
           Sec. 60.  Minnesota Statutes 1996, section 473.598, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMMISSION PROPOSAL.] (a) If the commission 
        makes a final determination to acquire the basketball and hockey 
        arena, the commission may then submit to the metropolitan 
        council a proposal to bond for and acquire the basketball and 
        hockey arena.  The commission's proposal shall contain all 
        information deemed appropriate or necessary by the council to 
        its determinations pursuant to section 473.599, subdivision 4.  
        The commission, in preparing the proposal for the council, shall 
        require of the sellers and of the professional teams that are 
        potential lessees or other potential lessees and all of their 
        affiliated entities any and all data relevant to the 
        acquisition, financing, ownership, and operation of the 
        basketball and hockey arena, including, but not limited to, 
        contracts, agreements, profit and loss statements, annual audit 
        statements and balance sheets.  The commission shall contract 
        with an independent, nationally recognized firm of certified 
        public accountants to perform due diligence and provide an 
        economic feasibility study or report with regard to the data 
        received by the commission from the sellers, the potential 
        lessees, and affiliated entities.  In evaluating whether to 
        acquire the basketball and hockey arena, the commission shall 
        consider among other factors, (a) total capital and operating 
        costs of the basketball and hockey arena to the commission and 
        total commission revenues from the basketball and hockey arena 
        over the expected life of the facility, including any 
        contributions by the state, local units of government or other 
        organizations, (b) the total governmental costs associated with 
        the acquisition and operation of the basketball and hockey 
        arena, including the cost to all units and agencies of 
        government as well as the costs to the commission, (c) the net 
        gain or loss of taxes to the state and all local government 
        units, and (d) economic and other benefits accruing to the 
        public.  
           (b) Before submitting its proposal to the metropolitan 
        council under paragraph (a), the commission shall submit the 
        proposal to the legislative auditor and the department of 
        finance for review, evaluation, and comment.  The legislative 
        auditor shall present the evaluation and comments to the 
        legislative audit commission.  Both the legislative auditor and 
        the commissioner of finance shall present their evaluation and 
        comments to the chairs of the house taxes, and ways and means 
        committees, to the chair of the state government finance 
        division of the house governmental operations committee, and to 
        the chairs of the senate taxes and finance committees.  Any data 
        which is not public data under subdivision 4 shall remain not 
        public data when given to the legislative auditor or the 
        department of finance. 
           Sec. 61.  Minnesota Statutes 1996, section 609.101, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MINIMUM FINES; OTHER CRIMES.] Notwithstanding 
        any other law: 
           (1) when a court sentences a person convicted of a felony 
        that is not listed in subdivision 2 or 3, it must impose a fine 
        of not less than 30 percent of the maximum fine authorized by 
        law nor more than the maximum fine authorized by law; and 
           (2) when a court sentences a person convicted of a gross 
        misdemeanor or misdemeanor that is not listed in subdivision 2, 
        it must impose a fine of not less than 30 percent of the maximum 
        fine authorized by law nor more than the maximum fine authorized 
        by law, unless the fine is set at a lower amount on a uniform 
        fine schedule established by the conference of chief judges in 
        consultation with affected state and local agencies.  This 
        schedule shall be promulgated and reported to the legislature 
        not later than January 1 of each year and shall become effective 
        on August 1 of that year unless the legislature, by law, 
        provides otherwise. 
           The minimum fine required by this subdivision is in 
        addition to the surcharge or assessment required by subdivision 
        1 and is in addition to any sentence of imprisonment or 
        restitution imposed or ordered by the court. 
           The court shall collect the fines mandated in this 
        subdivision and, except for fines for traffic and motor vehicle 
        violations governed by section 169.871 and section 299D.03 and 
        fish and game violations governed by section 97A.065, forward 20 
        percent of the revenues to the state treasurer for deposit in 
        the general fund. 
           Sec. 62.  Minnesota Statutes 1996, section 611.216, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REPORT.] Each corporation shall submit reports 
        showing, at a minimum, the number of clients served, the number 
        of charges brought, the number of cases of each kind, such as 
        felonies, gross misdemeanors, misdemeanors, and juvenile 
        delinquencies, the number of dispositions of each kind, such as 
        jury trials, court trials, guilty pleas, and dismissals, the 
        number of court appearances, and financial data.  This 
        information must be summarized for each corporation in the 
        budget documents submitted to the legislature.  
           Sec. 63.  Minnesota Statutes 1996, section 611.25, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTIES.] The state public defender shall prepare 
        a biennial report to the board and a report to the governor, the 
        legislature, and the supreme court on the operation of the state 
        public defender's office, district defender systems, and public 
        defense corporations.  The biennial report is due on or before 
        the beginning of the legislative session following the end of 
        the biennium.  The state public defender may require the 
        reporting of statistical data, budget information, and other 
        cost factors by the chief district public defenders and 
        appointed counsel systems.  The state public defender shall 
        design and conduct programs for the training of all state and 
        district public defenders, appointed counsel, and attorneys for 
        public defense corporations funded under section 611.26.  The 
        state public defender shall establish policies and procedures to 
        administer the district public defender system, consistent with 
        standards adopted by the state board of public defense. 
           Sec. 64.  Minnesota Statutes 1996, section 611A.56, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES.] In addition to carrying out any 
        duties specified elsewhere in sections 611A.51 to 611A.68 or in 
        other law, the board shall: 
           (a) provide all claimants with an opportunity for hearing 
        pursuant to chapter 14; 
           (b) adopt rules to implement and administer sections 
        611A.51 to 611A.68, including rules governing the method of 
        practice and procedure before the board, prescribing the manner 
        in which applications for reparations shall be made, and 
        providing for discovery proceedings; 
           (c) publicize widely the availability of reparations and 
        the method of making claims; and 
           (d) prepare and transmit annually to the governor, and the 
        commissioner of public safety, and the legislature a report of 
        its activities including the number of claims awarded, a brief 
        description of the facts in each case, the amount of reparation 
        awarded, and a statistical summary of claims and awards made and 
        denied.  
           Sec. 65.  Minnesota Statutes 1996, section 626.843, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BOARD AUTHORITY.] The board may, in addition: 
           (a) Recommend studies, surveys, and reports to be made by 
        the executive director regarding the carrying out of the 
        objectives and purposes of sections 626.841 to 626.855; 
           (b) Visit and inspect any peace officer training school 
        approved by the executive director or for which application for 
        such approval has been made; 
           (c) Make recommendations, from time to time, to the 
        executive director, attorney general, and the governor, and the 
        legislature regarding the carrying out of the objectives and 
        purposes of sections 626.841 to 626.855; 
           (d) Perform such other acts as may be necessary or 
        appropriate to carry out the powers and duties of the board as 
        set forth in sections 626.841 to 626.855; 
           (e) Cooperate with and receive financial assistance from 
        and join in projects or enter into contracts with the federal 
        government or its agencies for the furtherance of the purposes 
        of Laws 1977, chapter 433. 
           Sec. 66.  Minnesota Statutes 1996, section 626.845, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [POWERS AND DUTIES.] The board shall have 
        the following powers and duties: 
           (a) To certify peace officers' training schools or programs 
        administered by state, county and municipalities located within 
        this state in whole or in part no later than 90 days after 
        receipt of an application for certification.  The reasons for 
        noncertification of any school or program or part thereof shall 
        be transmitted to the school within 90 days and shall contain a 
        detailed explanation of the reasons for which the school or 
        program was disapproved and an explanation of what supporting 
        material or other requirements are necessary for the board to 
        reconsider.  Disapproval of a school or program shall not 
        preclude the reapplication for certification of the school or 
        program; 
           (b) To issue certificates to schools, and to revoke such 
        certification when necessary to maintain the objectives and 
        purposes of sections 626.841 to 626.855; 
           (c) To certify, as qualified, instructors at peace officer 
        training schools, and to issue appropriate certificates to such 
        instructors; 
           (d) To license peace officers who have satisfactorily 
        completed certified basic training programs, and passed 
        examinations as required by the board; 
           (e) To cause studies and surveys to be made relating to the 
        establishment, operation, and approval of state, county, and 
        municipal peace officer training schools; 
           (f) To consult and cooperate with state, county, and 
        municipal peace officer training schools for the development of 
        in-service training programs for peace officers; 
           (g) To consult and cooperate with universities, colleges, 
        and technical colleges for the development of specialized 
        courses of instruction and study in the state for peace officers 
        and part-time peace officers in police science and police 
        administration; 
           (h) To consult and cooperate with other departments and 
        agencies of the state and federal government concerned with 
        peace officer standards and training; 
           (i) To perform such other acts as may be necessary and 
        appropriate to carry out the powers and duties as set forth in 
        the provisions of sections 626.841 to 626.855; 
           (j) To coordinate the provision, on a regional basis, of 
        skills oriented basic training courses to graduates of certified 
        law enforcement training schools or programs; 
           (k) To obtain criminal conviction data for persons seeking 
        a license to be issued or possessing a license issued by the 
        board.  The board shall have authority to obtain criminal 
        conviction data to the full extent that any other law 
        enforcement agency, as that term is defined by state or federal 
        law, has to obtain the data; 
           (l) To prepare and transmit annually to the governor and 
        the legislature a report of its activities with respect to 
        allocation of moneys appropriated to it for peace officers 
        training, including the name and address of each recipient of 
        money for that purpose, the amount awarded, and the purpose of 
        the award; 
           (m) To assist and cooperate with any political subdivision 
        or state law enforcement agency which employs persons licensed 
        by the board to establish written procedures for the 
        investigation and resolution of allegations of misconduct of 
        persons licensed by the board, and to enforce licensing 
        sanctions for failure to implement such procedures; and 
           (n) To assist and cooperate with political subdivisions and 
        state law enforcement agencies that employ persons licensed by 
        the board in establishing written procedures to govern the 
        conduct of peace officers who are in pursuit of a vehicle in 
        violation of section 609.487, and requirements for the training 
        of peace officers in conducting pursuits.  The board may impose 
        licensing sanctions for failure to establish pursuit procedures 
        and training requirements by October 1, 1989. 
           Sec. 67.  [REPEALER.] 
           Minnesota Statutes 1996, sections 3.922, subdivision 9; 
        15.475; 16B.87, subdivision 4; 17.452, subdivision 3; 116D.11, 
        subdivision 4; 126.78, subdivision 5; 144.95, subdivision 9; 
        145A.12, subdivision 6; 148.578; 174.23, subdivision 5; 196.22, 
        subdivision 4; 246.57, subdivision 2; 254B.03, subdivision 8; 
        256B.04, subdivision 11; 256B.0629, subdivision 3; 256F.11, 
        subdivision 3; 256F.12, subdivision 5; 260.152, subdivision 7; 
        325F.98; 388.24, subdivision 5; 494.05, subdivision 3; 611.27, 
        subdivision 14; and 611A.75, are repealed. 
                                     PART B 
           Sec. 68.  Minnesota Statutes 1996, section 14.62, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AWARD OF FEES AND OTHER EXPENSES.] Fees and 
        expenses must be awarded as provided in sections 15.471 to 
        15.475 15.474. 
           Sec. 69.  Minnesota Statutes 1996, section 15.471, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TERMS DEFINED.] For purposes of this 
        section and sections 15.471 to 15.475 15.474, the terms defined 
        in this section have the meanings given them.  
           Sec. 70.  Minnesota Statutes 1996, section 270A.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONTESTED CASE; FINAL DECISION.] The report of 
        the administrative law judge shall contain a decision and order, 
        which constitute the final decision in the contested case.  A 
        copy of the decision and order shall be served by first class 
        mail upon each party, the commissioner of revenue, and the 
        attorney general.  Fees and expenses may be awarded as provided 
        in sections 15.471 to 15.475 15.474.  The provisions for 
        judicial review under sections 14.63 to 14.68 apply to decisions 
        of the administrative law judge under this subdivision. 
           Sec. 71.  Minnesota Statutes 1996, section 325F.84, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] As used in sections 
        325F.84 to 325F.98 325F.97, the following terms have the 
        meanings given them. 
                                     PART C 
           Sec. 72.  [RETROACTIVE EFFECTIVE DATE.] 
           Sections 2 to 71 are effective retroactive to October 15, 
        1995. 
                                   ARTICLE 3
                         CHICANO/LATINO AFFAIRS COUNCIL 
           Section 1.  Minnesota Statutes 1996, section 15.0591, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BODIES AFFECTED.] A member meeting the 
        qualifications in subdivision 1 must be appointed to the 
        following boards, commissions, advisory councils, task forces, 
        or committees:  
           (1) advisory council on battered women; 
           (2) advisory task force on the use of state facilities; 
           (3) alcohol and other drug abuse advisory council; 
           (4) board of examiners for nursing home administrators; 
           (5) board on aging; 
           (6) chiropractic examiners board; 
           (7) consumer advisory council on vocational rehabilitation; 
           (8) council on disability; 
           (9) council on affairs of Spanish-speaking Chicano/Latino 
        people; 
           (10) council on Black Minnesotans; 
           (11) dentistry board; 
           (12) department of economic security advisory council; 
           (13) higher education services office; 
           (14) housing finance agency; 
           (15) Indian advisory council on chemical dependency; 
           (16) medical practice board; 
           (17) medical policy directional task force on mental 
        health; 
           (18) Minnesota employment and economic development task 
        force; 
           (19) Minnesota office of citizenship and volunteer services 
        advisory committee; 
           (20) Minnesota state arts board; 
           (21) mortuary sciences advisory council; 
           (22) nursing board; 
           (23) optometry board; 
           (24) pharmacy board; 
           (25) physical therapists council; 
           (26) podiatry board; 
           (27) psychology board; 
           (28) veterans advisory committee. 
           Sec. 2.  Minnesota Statutes 1996, section 15.441, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATE AGENCIES; BILINGUAL EMPLOYEES.] 
        Every state agency that is directly involved in furnishing 
        information or rendering services to the public and that serves 
        a substantial number of non-English-speaking people shall employ 
        enough qualified bilingual persons in public contact positions, 
        or enough interpreters to assist those in these positions, to 
        ensure provision of information and services in the language 
        spoken by a substantial number of non-English-speaking people. 
           The commissioner of administration shall determine the 
        application of this section to each state agency, in 
        consultation with the council on affairs of Spanish-speaking 
        Chicano/Latino people, groups representing other 
        non-English-speaking people, and the head of the agency.  In 
        determining what constitutes a substantial number of 
        non-English-speaking people, the commissioner shall consider: 
           (1) the number of people served by the agency; 
           (2) the number of non-English-speaking people served by the 
        agency; 
           (3) the frequency with which non-English-speaking people 
        are served by the agency; and 
           (4) the extent to which information or services rendered by 
        the agency affect legal rights, privileges, or duties. 
           Sec. 3.  Minnesota Statutes 1996, section 121.1601, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
        establish an advisory board composed of: 
           (1) eight superintendents, each of whom shall be selected 
        by the superintendents of the school districts located in whole 
        or in part within each of the eight metropolitan districts 
        established under section 473.123, subdivision 3c; and 
           (2) one person each selected by the Indian affairs council, 
        the council on Asian-Pacific Minnesotans, the council on Black 
        Minnesotans, and the Spanish Speaking Affairs council on affairs 
        of Chicano/Latino people. 
           The advisory board shall advise the office on complying 
        with the requirements under subdivision 1.  The advisory board 
        may solicit comments from teachers, parents, students, and 
        interested community organizations and others. 
           Sec. 4.  Minnesota Statutes 1996, section 148C.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEDERALLY RECOGNIZED TRIBES; ETHNIC MINORITIES.] 
        (a) Alcohol and drug counselors licensed to practice alcohol and 
        drug counseling according to standards established by federally 
        recognized tribes, while practicing under tribal jurisdiction, 
        are exempt from the requirements of this chapter.  In practicing 
        alcohol and drug counseling under tribal jurisdiction, 
        individuals licensed under that authority shall be afforded the 
        same rights, responsibilities, and recognition as persons 
        licensed pursuant to this chapter. 
           (b) The commissioner shall develop special licensing 
        criteria for issuance of a license to alcohol and drug 
        counselors who:  (1) are members of ethnic minority groups; or 
        (2) are employed by private, nonprofit agencies, including 
        agencies operated by private, nonprofit hospitals, whose primary 
        agency service focus addresses ethnic minority populations.  
        These licensing criteria may differ from the licensing criteria 
        specified in section 148C.04.  To develop these criteria, the 
        commissioner shall establish a committee comprised of but not 
        limited to representatives from the council on hearing impaired, 
        the council on affairs of Spanish-speaking Chicano/Latino 
        people, the council on Asian-Pacific Minnesotans, the council on 
        Black Minnesotans, and the Indian affairs council. 
           Sec. 5.  Minnesota Statutes 1996, section 242.56, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ADVISORY GROUP.] The commissioner shall appoint 
        an advisory group to assist in selecting sites under this 
        section.  The commissioner shall include among the members of 
        the group representatives of the following:  the council on 
        Black Minnesotans, the council on the affairs of 
        Spanish-speaking Chicano/Latino people, the council on 
        Asian-Pacific Minnesotans, the Indian affairs council, the 
        commissioner of children, families, and learning, community 
        corrections officials, county corrections officials, the 
        association of counties, and the association of county probation 
        officers. 
           Sec. 6.  Minnesota Statutes 1996, section 257.072, 
        subdivision 5, is amended to read: 
           Subd. 5.  [MINORITY PLACEMENTS.] Beginning December 1, 
        1996, the commissioner shall provide to the Indian affairs 
        council, the council on affairs of Spanish-speaking 
        Chicano/Latino people, the council on Black Minnesotans, and the 
        council on Asian-Pacific Minnesotans the annual report required 
        under section 257.0725.  
           Sec. 7.  Minnesota Statutes 1996, section 257.0755, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] One ombudsperson shall operate 
        independently from but in collaboration with each of the 
        following groups:  the Indian affairs council, 
        the Spanish-Speaking affairs council on affairs of 
        Chicano/Latino people, the council on Black Minnesotans, and the 
        council on Asian-Pacific Minnesotans. 
           Sec. 8.  Minnesota Statutes 1996, section 257.0768, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] Four community-specific 
        boards are created.  Each board consists of five members.  The 
        chair of each of the following groups shall appoint the board 
        for the community represented by the group:  the Indian affairs 
        council; the Spanish-Speaking Affairs council on affairs of 
        Chicano/Latino people; the council on Black Minnesotans; and the 
        council on Asian-Pacific Minnesotans.  In making appointments, 
        the chair must consult with other members of the council. 
           Sec. 9.  Minnesota Statutes 1996, section 257.0769, is 
        amended to read: 
           257.0769 [FUNDING FOR THE OMBUDSPERSON PROGRAM.] 
           (a) Money is appropriated from the special fund authorized 
        by section 256.01, subdivision 2, clause (15), to the Indian 
        affairs council for the purposes of sections 257.0755 to 
        257.0768. 
           (b) Money is appropriated from the special fund authorized 
        by section 256.01, subdivision 2, clause (15), to the 
        Spanish-speaking Affairs council on affairs of Chicano/Latino 
        people for the purposes of sections 257.0755 to 257.0768. 
           (c) Money is appropriated from the special fund authorized 
        by section 256.01, subdivision 2, clause (15), to the Council of 
        Black Minnesotans for the purposes of sections 257.0755 to 
        257.0768. 
           (d) Money is appropriated from the special fund authorized 
        by section 256.01, subdivision 2, clause (15), to the Council on 
        Asian-Pacific Minnesotans for the purposes of sections 257.0755 
        to 257.0768. 
           Sec. 10.  Minnesota Statutes 1996, section 260.152, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROGRAM COMPONENTS.] (a) The commissioner of 
        human services shall, in consultation with the Indian affairs 
        council, the council on affairs of Spanish-speaking 
        Chicano/Latino people, the council on Black Minnesotans, and the 
        council on Asian-Pacific Minnesotans, provide grants to the 
        counties for the pilot projects.  The projects shall build upon 
        the existing service capabilities in the community and must 
        include availability of screening for mental health problems of 
        children who are alleged or found to be delinquent and children 
        who are reported as being or found to be in need of protection 
        or services. 
           (b) The projects must include referral for mental health 
        assessment of all children for whom the screening indicates a 
        need.  This assessment is to be provided by the appropriate 
        mental health professional.  If the child is of a minority race 
        or minority ethnic heritage, the mental health professional must 
        be skilled in and knowledgeable about the child's racial and 
        ethnic heritage, or must consult with a special mental health 
        consultant who has such knowledge so that the assessment is 
        relevant, culturally specific, and sensitive to the child's 
        cultural needs. 
           (c) Upon completion of the assessment, the project must 
        provide or ensure access to nonresidential mental health 
        services identified as needed in the assessment. 
           Sec. 11.  Minnesota Statutes 1996, section 260.152, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SCREENING TOOL.] The commissioner of human 
        services and the commissioner of corrections, in consultation 
        with the Indian affairs council, the council on affairs of 
        Spanish-speaking Chicano/Latino people, the council on Black 
        Minnesotans, and the council on Asian-Pacific Minnesotans, shall 
        jointly develop a model screening tool to screen children to 
        determine if a mental health assessment is needed.  This tool 
        must contain specific questions to identify potential mental 
        health problems.  In implementing a pilot project, a county must 
        either use this model tool or another screening tool approved by 
        the commissioner of human services which meets the requirements 
        of this section. 
           Sec. 12.  Minnesota Statutes 1996, section 260.152, 
        subdivision 6, is amended to read: 
           Subd. 6.  [EVALUATION.] The commissioner of human services 
        and the commissioner of corrections shall, in consultation with 
        the Indian affairs council, the council on affairs 
        of Spanish-speaking Chicano/Latino people, the council on Black 
        Minnesotans, and the council on Asian-Pacific Minnesotans, 
        develop systems and procedures for evaluating the pilot 
        projects.  The departments must develop an interagency 
        management information system to track children who receive 
        mental health services.  The system must be designed to meet the 
        information needs of the agencies involved and to provide a 
        basis for evaluating outcome data.  The system must be designed 
        to track the mental health treatment of children released from 
        custody and to improve the planning, delivery, and evaluation of 
        services and increase interagency collaboration.  The evaluation 
        protocol must be designed to measure the impact of the program 
        on juvenile recidivism, school performance, and state and county 
        budgets. 
                                   ARTICLE 4 
                            CONSTITUTIONAL CITATIONS 
           Section 1.  Minnesota Statutes 1996, section 360.013, 
        subdivision 20, is amended to read: 
           Subd. 20.  [MUNICIPALITY.] "Municipality" means a city of 
        any class, including a city organized under a charter framed 
        pursuant to the Constitution of the State of Minnesota, Article 
        4, Section 36, Article XI, Section 4, or Article XII, Section 5, 
        a county, a town, or a statutory city in this state, the regents 
        of the University of Minnesota, and any other political 
        subdivision, public corporation, authority, or district in this 
        state which is or may be authorized by law to acquire, 
        establish, construct, maintain, improve, and operate airports 
        and other air navigation facilities.  
           Sec. 2.  Minnesota Statutes 1996, section 427.02, is 
        amended to read: 
           427.02 [DEPOSITORIES.] 
           The council of any city in this state, but not including 
        cities when governed under a charter adopted under and pursuant 
        to the Constitution of the state of Minnesota, article IV, 
        section 36, article XI, section 4, or article XII, section 5, 
        and sections 410.03 to 410.24, and 441.01 to 441.09, and all 
        acts supplemental thereto, in which charter the matter of 
        designating depositories for city funds and the protection 
        thereof is provided for, or in which charter it shall hereafter 
        be provided for, shall have the power and authority to designate 
        or redesignate at the beginning of each calendar year, or from 
        time to time, the banks or other legal depositories of any city 
        in which the treasurer of the city shall deposit and keep the 
        moneys of the city, designating in each instance the maximum 
        amount which may at any time be kept in any one of these 
        depositories, which maximum amount shall in no case exceed 25 
        percent of the paid-up capital and surplus of the depository, 
        unless the depository shall deposit with the treasurer of the 
        city United States government bonds to secure the deposit of the 
        funds of the city; and, in that event, the amount so deposited 
        shall not exceed the amount of the United States government 
        bonds so deposited.  No depository shall deposit United States 
        government bonds which mature within one year from the date such 
        bonds were first considered as a part of the bank's reserve and 
        which reserves are required by section 48.221.  The council of 
        each city shall, at all times, designate depositories in the 
        city, or elsewhere in the United States, sufficient for the 
        depository of all funds which are likely to be in the hands of 
        the treasurer of the city at any one time and shall, so far as 
        consistent with the best interest of the city, designate these 
        depositories in the city and require from these depositories 
        good and sufficient bonds payable to the city in a penal sum not 
        to exceed the amount designated as the limit of deposit therein, 
        and conditioned for the safekeeping and payment of funds so 
        deposited, or, in lieu thereof, good and sufficient collateral 
        as provided for by section 118A.03.  
           Sec. 3.  Minnesota Statutes 1996, section 435.27, is 
        amended to read: 
           435.27 [APPLICATION.] 
           Section 435.26 shall be applicable to cities governed by a 
        charter adopted pursuant to the Constitution of the State of 
        Minnesota, Article 4, Section 36, Article XI, Section 4, or 
        Article XII, Section 5.  
           Sec. 4.  Minnesota Statutes 1996, section 458.40, is 
        amended to read: 
           458.40 [MUST VOTE TO ISSUE BONDS IF CHARTER SAYS SO.] 
           If a charter adopted under the Minnesota Constitution, 
        article IV, section 36, article XI, section 4, or article XII, 
        section 5, has a provision that requires the question of the 
        issuance of bonds to be submitted to the electors, the provision 
        prevails over sections 458.36 to 458.40. 
           Sec. 5.  Minnesota Statutes 1996, section 463.01, is 
        amended to read: 
           463.01 [BUILDING LINES, EASEMENTS; EXISTING STRUCTURES.] 
           The council of any city, including any city of this state 
        operating under a home rule charter adopted pursuant to the 
        Constitution of the State of Minnesota, Article 4, Section 
        36, Article XI, Section 4, or Article XII, Section 5, may 
        establish along any street or highway within such city a 
        building line upon the land adjoining such street or highway, or 
        any portion thereof, and distant not more than 50 feet from the 
        margin of such street or highway, and may, in behalf of the 
        city, acquire an easement in the land between such line and 
        exterior street line, such that no buildings or structures shall 
        be erected or maintained upon this land.  Such easement shall be 
        known as a building line easement.  The governing body may, at 
        the time they designate the easement to be acquired and define 
        the line by which it is bounded, provide in the resolution 
        designating such easement that buildings or structures or any 
        portions of buildings or structures existing within the 
        boundaries of the easement at that time may remain thereon for 
        stated periods of time or remain thereon during the life of such 
        buildings or structures or portions thereof, but no alteration 
        of any such buildings or structures or portions thereof upon 
        such easement shall be permitted after the designation of such 
        easements, and when such buildings are removed no other 
        buildings or structures shall be erected thereon.  Such 
        permission to maintain existing structures upon such easement 
        shall be clearly defined as to time in such resolution and shall 
        confer the right upon the owner of such buildings or structures 
        or portions thereof to maintain the same as defined in such 
        resolution.  
           Sec. 6.  Minnesota Statutes 1996, section 465.15, is 
        amended to read: 
           465.15 [CITIES MAY ACQUIRE EXEMPT PROPERTY.] 
           Each city of the first class now or hereafter having a 
        population of 50,000 inhabitants or more, including each such 
        city operating under a charter adopted pursuant to the 
        provisions of the Constitution of the State of Minnesota, 
        article IV, section 36, article XI, section 4, or article XII, 
        section 5, is hereby authorized and empowered to acquire by 
        purchase, condemnation, or otherwise any right or interest in 
        land either platted or unplatted within the limits of the city, 
        which interest in land consists of a right or privilege in the 
        owner of the land to offset certain amounts against special 
        assessments levied by the governing body, the city council, or 
        the board of park commissioners of such city for park or parkway 
        purposes, or both.  
           Sec. 7.  Minnesota Statutes 1996, section 465.20, is 
        amended to read: 
           465.20 [APPLICATION.] 
           Sections 465.19 and 465.20 shall apply to all cities 
        including those now or hereafter governed by a charter adopted 
        pursuant to the Constitution of the state of Minnesota, article 
        IV, section 36, article XI, section 4, or article XII, section 5.
           Sec. 8.  Minnesota Statutes 1996, section 469.183, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ADDITIONAL POWERS.] The authority granted in 
        this section is in addition to all existing power and authority 
        of any city operating under a home rule charter adopted in 
        pursuance of the Constitution of the state of Minnesota, article 
        IV, section 36, article XI, section 4, or article XII, section 5.
                                   ARTICLE 5 
                                EMERGENCY RULES 
           Section 1.  Minnesota Statutes 1996, section 18C.121, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ADMINISTRATION.] The commissioner may 
        adopt emergency or permanent rules necessary to implement and 
        enforce this chapter.  The rules must conform to national 
        standards in a manner that is practicable and consistent with 
        state law.  
           Sec. 2.  Minnesota Statutes 1996, section 18C.575, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FOR ADMINISTRATION.] The commissioner may 
        adopt emergency or permanent rules necessary to administer 
        sections 18C.531 to 18C.575. 
           Sec. 3.  Minnesota Statutes 1996, section 19.51, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ENFORCEMENT; RULES.] The commissioner 
        shall enforce sections 19.50 to 19.65.  The commissioner may 
        make all necessary examinations and inspections, and adopt 
        emergency or permanent rules necessary to enforce sections 19.50 
        to 19.65 promptly and effectively.  The commissioner may employ 
        classified civil service employees necessary to administer 
        sections 19.50 to 19.65, and may contract with individuals to 
        serve as authorized agents. 
           Sec. 4.  Minnesota Statutes 1996, section 31.874, is 
        amended to read: 
           31.874 [DISEASE CONTROL.] 
           If the commissioner of agriculture finds that a disease or 
        foreign matter is actually transmitted by a method of dispensing 
        bulk foods that is permitted by section 31.84, the commissioner 
        may adopt emergency or permanent rules more restrictive on the 
        sale of that food than section 31.84.  The rules must address 
        the specific relationship between the disease or foreign matter 
        being transmitted and the dispensing methods permitted by 
        section 31.84.  
           Sec. 5.  Minnesota Statutes 1996, section 32.532, is 
        amended to read: 
           32.532 [ENFORCEMENT.] 
           The commissioner is authorized and directed to administer 
        and supervise the enforcement of sections 32.53 to 32.534; to 
        provide for such periodic inspections and investigations as the 
        commissioner may deem necessary to disclose violations; to 
        receive and provide for the investigation of complaints; and to 
        provide for the institution and prosecution of civil or criminal 
        actions or both.  The provisions of these sections may be 
        enforced by injunction in any court having jurisdiction to grant 
        injunctive relief.  Artificial dairy products involved in a 
        violation of these sections are subject to seizure and 
        disposition in accordance with an appropriate court order or a 
        rule adopted by the commissioner.  The commissioner may adopt 
        emergency or permanent rules necessary to implement and 
        administer sections 32.53 to 32.534.  
           Sec. 6.  Minnesota Statutes 1996, section 32.71, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES; RULES.] The commissioner shall 
        adopt emergency and permanent rules to implement and administer 
        sections 32.70 to 32.74 as necessary. 
           Sec. 7.  Minnesota Statutes 1996, section 41.53, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RULES.] The commissioner may adopt emergency or 
        permanent rules necessary for the efficient administration of 
        sections 41.51 to 41.57; 41.58, subdivisions 1 and 2; 41.59, 
        subdivision 1; and 41.61.  
           Sec. 8.  Minnesota Statutes 1996, section 41A.09, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RULEMAKING AUTHORITY.] The commissioner shall 
        adopt emergency and permanent rules to implement this section. 
           Sec. 9.  Minnesota Statutes 1996, section 62N.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RULES.] The commissioner, in consultation 
        with the commission, may adopt emergency and permanent rules to 
        establish more detailed requirements governing integrated 
        service networks in accordance with this chapter. 
           Sec. 10.  Minnesota Statutes 1996, section 62N.24, is 
        amended to read: 
           62N.24 [REVIEW OF RULES.] 
           The commissioner of health shall mail copies of all 
        proposed emergency and permanent rules that are being 
        promulgated under this chapter to each member of the legislative 
        commission on health care access prior to final adoption by the 
        commissioner. 
           Sec. 11.  Minnesota Statutes 1996, section 144A.073, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REVIEW AND APPROVAL OF PROPOSALS.] Within the 
        limits of money specifically appropriated to the medical 
        assistance program for this purpose, the interagency long-term 
        care planning committee may recommend that the commissioner of 
        health grant exceptions to the nursing home licensure or 
        certification moratorium for proposals that satisfy the 
        requirements of this section.  The interagency committee shall 
        appoint an advisory review panel composed of representatives of 
        consumers and providers to review proposals and provide comments 
        and recommendations to the committee.  The commissioners of 
        human services and health shall provide staff and technical 
        assistance to the committee for the review and analysis of 
        proposals.  The interagency committee shall hold a public 
        hearing before submitting recommendations to the commissioner of 
        health on project requests.  The committee shall submit 
        recommendations within 150 days of the date of the publication 
        of the notice.  The commissioner of health shall approve or 
        disapprove a project within 30 days after receiving the 
        committee's recommendations.  The advisory review panel, the 
        committee, and the commissioner of health shall base their 
        recommendations, approvals, or disapprovals on a comparison and 
        ranking of proposals using only the criteria in subdivision 4 
        and in emergency and permanent rules adopted by the 
        commissioner.  The cost to the medical assistance program of the 
        proposals approved must be within the limits of the 
        appropriations specifically made for this purpose.  Approval of 
        a proposal expires 18 months after approval by the commissioner 
        of health unless the facility has commenced construction as 
        defined in section 144A.071, subdivision 1a, paragraph (d).  The 
        committee's report to the legislature, as required under section 
        144A.31, must include the projects approved, the criteria used 
        to recommend proposals for approval, and the estimated costs of 
        the projects, including the costs of initial construction and 
        remodeling, and the estimated operating costs during the first 
        two years after the project is completed. 
           Sec. 12.  Minnesota Statutes 1996, section 148B.23, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TEMPORARY RULEMAKING AUTHORITY.] The board is 
        authorized to adopt emergency and permanent rules to implement 
        this section. 
           Sec. 13.  Minnesota Statutes 1996, section 176.108, is 
        amended to read: 
           176.108 [LIGHT-DUTY WORK POOLS.] 
           Employers may form light-duty work pools for the purpose of 
        encouraging the return to work of injured employees.  The 
        commissioner may adopt emergency and permanent rules necessary 
        to implement this section. 
           Sec. 14.  Minnesota Statutes 1996, section 176.1351, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REVOCATION, SUSPENSION, AND REFUSAL TO CERTIFY; 
        PENALTIES AND ENFORCEMENT.] (a) The commissioner shall refuse to 
        certify or shall revoke or suspend the certification of a 
        managed care plan if the commissioner finds that the plan for 
        providing medical or health care services fails to meet the 
        requirements of this section, or service under the plan is not 
        being provided in accordance with the terms of a certified plan. 
           (b) In lieu of or in addition to suspension or revocation 
        under paragraph (a), the commissioner may, for any noncompliance 
        with the managed care plan as certified or any violation of a 
        statute or rule applicable to a managed care plan, assess an 
        administrative penalty payable to the special compensation fund 
        in an amount up to $25,000 for each violation or incidence of 
        noncompliance.  The commissioner may adopt emergency or 
        permanent rules necessary to implement this subdivision.  In 
        determining the level of an administrative penalty, the 
        commissioner shall consider the following factors: 
           (1) the number of workers affected or potentially affected 
        by the violation or noncompliance; 
           (2) the effect or potential effect of the violation or 
        noncompliance on workers' health, access to health services, or 
        workers' compensation benefits; 
           (3) the effect or potential effect of the violation or 
        noncompliance on workers' understanding of their rights and 
        obligations under the workers' compensation law and rules; 
           (4) whether the violation or noncompliance is an isolated 
        incident or part of a pattern of violations; and 
           (5) the potential or actual economic benefits derived by 
        the managed care plan or a participating provider by virtue of 
        the violation or noncompliance. 
           The commissioner shall give written notice to the managed 
        care plan of the penalty assessment and the reasons for the 
        penalty.  The managed care plan has 30 days from the date the 
        penalty notice is issued within which to file a written request 
        for an administrative hearing and review of the commissioner's 
        determination pursuant to section 176.85, subdivision 1. 
           (c) If the commissioner, for any reason, has cause to 
        believe that a managed care plan has or may violate a statute or 
        rule or a provision of the managed care plan as certified, the 
        commissioner may, before commencing action under paragraph (a) 
        or (b), call a conference with the managed care plan and other 
        persons who may be involved in the suspected violation or 
        noncompliance for the purpose of ascertaining the facts relating 
        to the suspected violation or noncompliance and arriving at an 
        adequate and effective means of correcting or preventing the 
        violation or noncompliance.  The commissioner may enter into 
        stipulated consent agreements with the managed care plan for 
        corrective or preventive action or the amount of the penalty to 
        be paid.  Proceedings under this paragraph shall not be governed 
        by any formal procedural requirements, and may be conducted in a 
        manner the commissioner deems appropriate under the 
        circumstances. 
           (d) The commissioner may issue an order directing a managed 
        care plan or a representative of a managed care plan to cease 
        and desist from engaging in any act or practice that is not in 
        compliance with the managed care plan as certified, or that it 
        is in violation of an applicable statute or rule.  Within 30 
        days of service of the order, the managed care plan may request 
        review of the cease and desist order by an administrative law 
        judge pursuant to chapter 14.  The decision of the 
        administrative law judge shall include findings of fact, 
        conclusions of law and appropriate orders, which shall be the 
        final decision of the commissioner.  In the event of 
        noncompliance with a cease and desist order, the commissioner 
        may institute a proceeding in district court to obtain 
        injunctive or other appropriate relief. 
           (e) A managed care plan, participating health care 
        provider, or an employer or insurer that receives services from 
        the managed care plan, shall cooperate fully with an 
        investigation by the commissioner.  For purposes of this 
        section, cooperation includes, but is not limited to, attending 
        a conference called by the commissioner under paragraph (c), 
        responding fully and promptly to any questions relating to the 
        subject of the investigation, and providing copies of records, 
        reports, logs, data, and other information requested by the 
        commissioner to assist in the investigation.  
           (f) Any person acting on behalf of a managed care plan who 
        knowingly submits false information in any report required to be 
        filed by a managed care plan is guilty of a misdemeanor. 
           Sec. 15.  Minnesota Statutes 1996, section 176.1351, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RULES.] The commissioner may adopt emergency or 
        permanent rules necessary to implement this section. 
           Sec. 16.  Minnesota Statutes 1996, section 176.1812, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RULES.] The commissioner may adopt emergency or 
        permanent rules necessary to implement this section. 
           Sec. 17.  Minnesota Statutes 1996, section 176.83, 
        subdivision 5, is amended to read: 
           Subd. 5.  [TREATMENT STANDARDS FOR MEDICAL SERVICES.] In 
        consultation with the medical services review board or the 
        rehabilitation review panel, the commissioner shall adopt 
        emergency and permanent rules establishing standards and 
        procedures for health care provider treatment.  The rules shall 
        apply uniformly to all providers including those providing 
        managed care under section 176.1351.  The rules shall be used to 
        determine whether a provider of health care services and 
        rehabilitation services, including a provider of medical, 
        chiropractic, podiatric, surgical, hospital, or other services, 
        is performing procedures or providing services at a level or 
        with a frequency that is excessive, unnecessary, or 
        inappropriate under section 176.135, subdivision 1, based upon 
        accepted medical standards for quality health care and accepted 
        rehabilitation standards.  
           The rules shall include, but are not limited to, the 
        following: 
           (1) criteria for diagnosis and treatment of the most common 
        work-related injuries including, but not limited to, low back 
        injuries and upper extremity repetitive trauma injuries; 
           (2) criteria for surgical procedures including, but not 
        limited to, diagnosis, prior conservative treatment, supporting 
        diagnostic imaging and testing, and anticipated outcome 
        criteria; 
           (3) criteria for use of appliances, adaptive equipment, and 
        use of health clubs or other exercise facilities; 
           (4) criteria for diagnostic imaging procedures; 
           (5) criteria for inpatient hospitalization; and 
           (6) criteria for treatment of chronic pain. 
           If it is determined by the payer that the level, frequency 
        or cost of a procedure or service of a provider is excessive, 
        unnecessary, or inappropriate according to the standards 
        established by the rules, the provider shall not be paid for the 
        procedure, service, or cost by an insurer, self-insurer, or 
        group self-insurer, and the provider shall not be reimbursed or 
        attempt to collect reimbursement for the procedure, service, or 
        cost from any other source, including the employee, another 
        insurer, the special compensation fund, or any government 
        program unless the commissioner or compensation judge determines 
        at a hearing or administrative conference that the level, 
        frequency, or cost was not excessive under the rules in which 
        case the insurer, self-insurer, or group self-insurer shall make 
        the payment deemed reasonable.  
           A rehabilitation provider who is determined by the 
        rehabilitation review panel board, after hearing, to be 
        consistently performing procedures or providing services at an 
        excessive level or cost may be prohibited from receiving any 
        further reimbursement for procedures or services provided under 
        this chapter.  A prohibition imposed on a provider under this 
        subdivision may be grounds for revocation or suspension of the 
        provider's license or certificate of registration to provide 
        health care or rehabilitation service in Minnesota by the 
        appropriate licensing or certifying body.  The commissioner and 
        medical services review board shall review excessive, 
        inappropriate, or unnecessary health care provider treatment 
        under section 176.103. 
           Sec. 18.  Minnesota Statutes 1996, section 182.676, is 
        amended to read: 
           182.676 [SAFETY COMMITTEES.] 
           Every public or private employer of more than 25 employees 
        shall establish and administer a joint labor-management safety 
        committee.  
           Every public or private employer of 25 or fewer employees 
        shall establish and administer a safety committee if: 
           (1) the employer has a lost workday cases incidence rate in 
        the top ten percent of all rates for employers in the same 
        industry; or 
           (2) the workers' compensation premium classification 
        assigned to the greatest portion of the payroll for the employer 
        has a pure premium rate as reported by the workers' compensation 
        rating association in the top 25 percent of premium rates for 
        all classes. 
           A safety committee must hold regularly scheduled meetings 
        unless otherwise provided in a collective bargaining agreement. 
           Employee safety committee members must be selected by 
        employees.  An employer that fails to establish or administer a 
        safety committee as required by this section may be cited by the 
        commissioner.  A citation is punishable as a serious violation 
        under section 182.666. 
           The commissioner may adopt emergency or permanent rules 
        necessary to implement this section.  
           Sec. 19.  Minnesota Statutes 1996, section 223.19, is 
        amended to read: 
           223.19 [RULES.] 
           The commissioner may make emergency or permanent rules 
        pursuant to chapter 14 to carry out the provisions of sections 
        223.15 to 223.22.  
           Sec. 20.  Minnesota Statutes 1996, section 237.711, is 
        amended to read: 
           237.711 [IMPLEMENTATION RULES.] 
           The commission may adopt emergency and permanent rules to 
        implement Laws 1988, chapter 621, sections 1 to 16. 
           Sec. 21.  Minnesota Statutes 1996, section 244.09, 
        subdivision 13, is amended to read: 
           Subd. 13.  [RULEMAKING POWER.] The commission shall have 
        authority to promulgate emergency and permanent rules to carry 
        out the purposes of subdivision 5.  
           Sec. 22.  Minnesota Statutes 1996, section 245.4886, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GRANT APPLICATION AND REPORTING REQUIREMENTS.] 
        To apply for a grant a county board shall submit an application 
        and budget for the use of the money in the form specified by the 
        commissioner.  The commissioner shall make grants only to 
        counties whose applications and budgets are approved by the 
        commissioner.  In awarding grants, the commissioner shall give 
        priority to those counties whose applications indicate plans to 
        collaborate in the development, funding, and delivery of 
        services with other agencies in the local system of care.  The 
        commissioner may adopt emergency and permanent rules to govern 
        grant applications, approval of applications, allocation of 
        grants, and maintenance of financial statements by grant 
        recipients and may establish grant requirements for the fiscal 
        year ending June 30, 1992, without adopting rules.  The 
        commissioner shall specify requirements for reports, including 
        quarterly fiscal reports, according to section 256.01, 
        subdivision 2, paragraph (17).  The commissioner shall require 
        collection of data and periodic reports which the commissioner 
        deems necessary to demonstrate the effectiveness of each service 
        in realizing the stated purpose as specified for family 
        community support in section 245.4884, subdivision 1; 
        therapeutic support of foster care in section 245.4884, 
        subdivision 4; professional home-based family treatment in 
        section 245.4884, subdivision 3; day treatment in section 
        245.4884, subdivision 2; and case management in section 245.4881.
           Sec. 23.  Minnesota Statutes 1996, section 245.62, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITION.] A community mental health center is 
        a private nonprofit corporation or public agency approved under 
        the emergency and permanent rules promulgated by the 
        commissioner pursuant to subdivision 4.  
           Sec. 24.  Minnesota Statutes 1996, section 245.62, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RULES.] The commissioner shall promulgate 
        emergency and permanent rules to establish standards for the 
        designation of an agency as a community mental health center. 
        These standards shall include, but are not limited to:  
           (a) provision of mental health services in the prevention, 
        identification, treatment and aftercare of emotional disorders, 
        chronic and acute mental illness, mental retardation and 
        developmental disabilities, and alcohol and drug abuse and 
        dependency, including the services listed in section 245.61 
        except detoxification services; 
           (b) establishment of a community mental health center board 
        pursuant to section 245.66; and 
           (c) approval pursuant to section 245.69, subdivision 2.  
           Sec. 25.  Minnesota Statutes 1996, section 245.69, 
        subdivision 2, is amended to read: 
           Subd. 2.  The commissioner of human services has the 
        authority to approve or disapprove public and private mental 
        health centers and public and private mental health clinics for 
        the purposes of section 62A.152, subdivision 2.  For the 
        purposes of this subdivision the commissioner shall promulgate 
        both emergency and permanent rules in accordance with sections 
        14.001 to 14.69.  The rules shall require each applicant to pay 
        a fee to cover costs of processing applications and determining 
        compliance with the rules and this subdivision.  The 
        commissioner may contract with any state agency, individual, 
        corporation or association to which the commissioner shall 
        delegate all but final approval and disapproval authority to 
        determine compliance or noncompliance.  
           (a) Each approved mental health center and each approved 
        mental health clinic shall have a multidisciplinary team of 
        professional staff persons as required by rule.  A mental health 
        center or mental health clinic may provide the staffing required 
        by rule by means of written contracts with professional persons 
        or with other health care providers.  Any personnel 
        qualifications developed by rule shall be consistent with any 
        personnel standards developed pursuant to chapter 214.  
           (b) Each approved mental health clinic and each approved 
        mental health center shall establish a written treatment plan 
        for each outpatient for whom services are reimbursable through 
        insurance or public assistance.  The treatment plan shall be 
        developed in accordance with the rules and shall include a 
        patient history, treatment goals, a statement of diagnosis and a 
        treatment strategy.  The clinic or center shall provide access 
        to hospital admission as a bed patient as needed by any 
        outpatient.  The clinic or center shall ensure ongoing 
        consultation among and availability of all members of the 
        multidisciplinary team.  
           (c) As part of the required consultation, members of the 
        multidisciplinary team shall meet at least twice monthly to 
        conduct case reviews, peer consultations, treatment plan 
        development and in-depth case discussion.  Written minutes of 
        these meetings shall be kept at the clinic or center for three 
        years.  
           (d) Each approved center or clinic shall establish 
        mechanisms for quality assurance and submit documentation 
        concerning the mechanisms to the commissioner as required by 
        rule, including:  
           (1) Continuing education of each professional staff person; 
           (2) An ongoing internal utilization and peer review plan 
        and procedures; 
           (3) Mechanisms of staff supervision; and 
           (4) Procedures for review by the commissioner or a delegate.
           (e) The commissioner shall disapprove an applicant, or 
        withdraw approval of a clinic or center, which the commissioner 
        finds does not comply with the requirements of the rules or this 
        subdivision.  A clinic or center which is disapproved or whose 
        approval is withdrawn is entitled to a contested case hearing 
        and judicial review pursuant to sections 14.01 to 14.69.  
           (f) Data on individuals collected by approved clinics and 
        centers, including written minutes of team meetings, is private 
        data on individuals within the welfare system as provided in 
        chapter 13.  
           (g) Each center or clinic that is approved and in 
        compliance with the commissioner's existing rule on July 1, 1980 
        is approved for purposes of section 62A.152, subdivision 2, 
        until rules are promulgated to implement this section. 
           Sec. 26.  Minnesota Statutes 1996, section 252.275, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RULES.] The commissioner may adopt emergency and 
        permanent rules in accordance with chapter 14 to govern 
        allocation, reimbursement, and compliance.  
           Sec. 27.  Minnesota Statutes 1996, section 252.291, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RULEMAKING.] The commissioner of human services 
        shall promulgate emergency and permanent rules pursuant to 
        chapter 14, the administrative procedure act, to implement this 
        section.  
           Sec. 28.  Minnesota Statutes 1996, section 256.736, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RULEMAKING.] The commissioner of human services, 
        in cooperation with the commissioner of economic security, may 
        adopt permanent and emergency rules necessary to qualify for any 
        federal funds available under this section and to carry out this 
        section. 
           Sec. 29.  Minnesota Statutes 1996, section 256.82, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RULES.] The commissioner shall adopt emergency 
        and permanent rules to implement subdivision 3.  In developing 
        rules, the commissioner shall take into consideration any 
        existing difficulty of care payment rates so that, to the extent 
        possible, no child for whom a difficulty of care rate is 
        currently established will be adversely affected. 
           Sec. 30.  Minnesota Statutes 1996, section 256B.092, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RULES.] The commissioner shall adopt emergency 
        and permanent rules to establish required controls, 
        documentation, and reporting of services provided in order to 
        assure proper administration of the approved waiver plan, and to 
        establish policy and procedures to reduce duplicative efforts 
        and unnecessary paperwork on the part of case managers.  
           Sec. 31.  Minnesota Statutes 1996, section 256B.49, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RULES.] The commissioner of human services may 
        adopt emergency and permanent rules as necessary to implement 
        subdivision 1.  
           Sec. 32.  Minnesota Statutes 1996, section 256D.03, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DUTIES OF THE COMMISSIONER.] The commissioner 
        shall promulgate emergency and permanent rules as necessary to 
        establish:  
           (a) standards of eligibility, utilization of services, and 
        payment levels; 
           (b) standards for quality assurance, surveillance, and 
        utilization review procedures that conform to those established 
        for the medical assistance program pursuant to chapter 256B, 
        including general criteria and procedures for the identification 
        and prompt investigation of suspected fraud, theft, abuse, 
        presentment of false or duplicate claims, presentment of claims 
        for services not medically necessary, or false statements or 
        representations of material facts by a vendor or recipient of 
        general assistance medical care, and for the imposition of 
        sanctions against such vendor or recipient of medical care.  The 
        rules relating to sanctions shall be consistent with the 
        provisions of section 256B.064, subdivisions 1a and 2; and 
           (c) administrative and fiscal procedures for payment of the 
        state share of the medical costs incurred by the counties under 
        section 256D.02, subdivision 4a.  Rules promulgated pursuant to 
        this clause may include:  (1) procedures by which state 
        liability for the costs of medical care incurred pursuant to 
        section 256D.02, subdivision 4a may be deducted from county 
        liability to the state under any other public assistance program 
        authorized by law; (2) procedures for processing claims of 
        counties for reimbursement by the state for expenditures for 
        medical care made by the counties pursuant to section 256D.02, 
        subdivision 4a; and (3) procedures by which the county agencies 
        may contract with the commissioner of human services for state 
        administration of general assistance medical care payments.  
           Sec. 33.  Minnesota Statutes 1996, section 259.71, 
        subdivision 5, is amended to read: 
           Subd. 5.  [MEDICAL ASSISTANCE; DUTIES OF THE COMMISSIONER 
        OF HUMAN SERVICES.] The commissioner of human services shall:  
           (a) Issue a medical assistance identification card to any 
        child with special needs who is title IV-E eligible, or who is 
        not title IV-E eligible but was determined by another state to 
        have a special need for medical or rehabilitative care, and who 
        is a resident in this state and is the subject of an adoption 
        assistance agreement with another state when a certified copy of 
        the adoption assistance agreement obtained from the adoption 
        assistance state has been filed with the commissioner.  The 
        adoptive parents shall be required at least annually to show 
        that the agreement is still in force or has been renewed.  
           (b) Consider the holder of a medical assistance 
        identification card under this subdivision as any other 
        recipient of medical assistance under chapter 256B; process and 
        make payment on claims for the recipient in the same manner as 
        for other recipients of medical assistance.  
           (c) Provide coverage and benefits for a child who is title 
        IV-E eligible or who is not title IV-E eligible but was 
        determined to have a special need for medical or rehabilitative 
        care and who is in another state and who is covered by an 
        adoption assistance agreement made by the commissioner for the 
        coverage or benefits, if any, which is not provided by the 
        resident state.  The adoptive parents acting for the child may 
        submit evidence of payment for services or benefit amounts not 
        payable in the resident state and shall be reimbursed.  However, 
        there shall be no reimbursement for services or benefit amounts 
        covered under any insurance or other third party medical 
        contract or arrangement held by the child or the adoptive 
        parents.  
           (d) Publish emergency and permanent rules implementing this 
        subdivision.  Such rules shall include procedures to be followed 
        in obtaining prior approvals for services which are required for 
        the assistance.  
           Sec. 34.  Minnesota Statutes 1996, section 268.0122, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RULEMAKING.] The commissioner may make emergency 
        and permanent rules to carry out this chapter. 
           Sec. 35.  Minnesota Statutes 1996, section 268.90, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMMISSIONER OF ECONOMIC SECURITY.] The 
        commissioner shall: 
           (1) make emergency or permanent rules governing plan 
        content, criteria for approval, and administrative standards; 
           (2) refer community investment program administrators to 
        the appropriate state agency for technical assistance in 
        developing and administering community investment programs; 
           (3) establish the method by which community investment 
        programs will be approved or disapproved through the community 
        investment program plan and the annual update component of the 
        county plan; 
           (4) review and comment on community investment program 
        plans; 
           (5) institute ongoing methods to monitor and evaluate 
        community investment programs; and 
           (6) consult with the commissioner of human services on the 
        approval of county plans for community investment programs 
        relating to the participation of public assistance recipients. 
           Sec. 36.  Minnesota Statutes 1996, section 462A.03, 
        subdivision 10, is amended to read: 
           Subd. 10.  [PERSONS AND FAMILIES OF LOW AND MODERATE 
        INCOME.] "Persons and families of low and moderate income" means 
        persons and families, irrespective of race, creed, national 
        origin, sex, or status with respect to guardianship or 
        conservatorship, determined by the agency to require such 
        assistance as is made available by sections 462A.01 to 462A.24 
        on account of personal or family income not sufficient to afford 
        adequate housing.  In making such determination the agency shall 
        take into account the following:  (a) The amount of the total 
        income of such persons and families available for housing needs, 
        (b) the size of the family, (c) the cost and condition of 
        housing facilities available, (d) the eligibility of such 
        persons and families to compete successfully in the normal 
        housing market and to pay the amounts at which private 
        enterprise is providing sanitary, decent and safe housing.  In 
        the case of federally subsidized mortgages with respect to which 
        income limits have been established by any agency of the federal 
        government having jurisdiction thereover for the purpose of 
        defining eligibility of low and moderate income families, the 
        limits so established shall govern under the provision of 
        sections 462A.01 to 462A.24.  In all other cases income limits 
        for the purpose of defining low or moderate income persons shall 
        be established by the agency by emergency or permanent rules. 
           Presented to the governor March 10, 1997 
           Signed by the governor March 11, 1997, 10:20 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes