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Office of the Revisor of Statutes

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

                              CHAPTER 5-S.F.No. 5 
                  An act relating to legislative enactments; providing 
                  for the correction of miscellaneous oversights, 
                  inconsistencies, ambiguities, unintended results, and 
                  technical errors of a noncontroversial nature; 
                  amending Minnesota Statutes 1996, sections 62J.54, as 
                  amended; 69.021, subdivision 10, as amended; 119A.04, 
                  subdivision 6, as amended; 119B.05, subdivision 1, as 
                  amended; 119B.13, subdivision 6, as added; 124.239, 
                  subdivision 5, as amended, and subdivision 5a, as 
                  added, and by adding; 124.2601, subdivision 5, as 
                  amended; 254B.03, subdivision 1, as amended; 256.045, 
                  subdivision 1, as amended; 256.98, subdivision 1, as 
                  amended, and by adding a subdivision; 268.121, as 
                  amended; 270.60, subdivision 4, as added; 273.126, 
                  subdivision 2, as added; 273.1382, subdivision 1, as 
                  amended; 297A.25, subdivision 71, as added; 326.71, 
                  subdivision 4, as amended; 518.6111, subdivision 13, 
                  as added; Laws 1995, chapter 248, article 13, section 
                  4, subdivision 2; Laws 1997, chapter 84, article 3, 
                  section 9; chapter 85, article 1, section 62; chapter 
                  106, article 1, section 19; chapter 113, section 6, 
                  subdivision 5; chapter 162, article 2, section 31, 
                  subdivision 9, and article 4, section 63, subdivision 
                  5; chapter 200, article 1, sections 5, subdivision 4 
                  and 75; chapter 202, article 1, section 13; chapter 
                  203, article 1, section 2, subdivision 8, and by 
                  adding sections, and section 3, subdivision 2; article 
                  6, section 94; chapter 231, article 1, section 16; 
                  article 1, section 19;, subdivision 1; article 2, 
                  section 65; article 3, sections 3, subdivision 5, 4, 
                  subdivisions 2 and 3; 5, subdivision 2; article 7, 
                  section 47; article 8, section 16; article 16, section 
                  31; chapter 239, article 1, section 12, subdivision 4; 
                  article 3, sections 25 and 26; and chapter 248, 
                  section 46; repealing Minnesota Statutes 1996, section 
                  256.73, subdivisions 1 and 1b; Laws 1997, chapter 231, 
                  article 1, section 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 326.71, 
        subdivision 4, as amended by Laws 1997, chapter 205, section 32, 
        is amended to read: 
           Subd. 4.  [ASBESTOS-RELATED WORK.] "Asbestos-related work" 
        means the enclosure, removal, or encapsulation of 
        asbestos-containing material in a quantity that meets or exceeds 
        260 lineal linear feet of friable asbestos-containing material 
        on pipes, 160 square feet of friable asbestos-containing 
        material on other facility components, or, if linear feet or 
        square feet cannot be measured, a total of 35 cubic feet of 
        friable asbestos-containing material on or off all facility 
        components in one facility.  In the case of single or 
        multifamily residences, "asbestos-related work" also means the 
        enclosure, removal, or encapsulation of greater than ten but 
        less than 260 linear feet of friable asbestos-containing 
        material on pipes, greater than six but less than 160 square 
        feet of friable asbestos-containing material on other facility 
        components, or, if linear feet or square feet cannot be 
        measured, greater than one cubic foot but less than 35 cubic 
        feet of friable asbestos-containing material on or off all 
        facility components in one facility.  This provision excludes 
        asbestos-containing floor tiles and sheeting, roofing materials, 
        siding, and all ceilings with asbestos-containing material in 
        single family residences and buildings with no more than four 
        dwelling units.  Asbestos-related work includes asbestos 
        abatement area preparation; enclosure, removal, or encapsulation 
        operations; and an air quality monitoring specified in rule to 
        assure that the abatement and adjacent areas are not 
        contaminated with asbestos fibers during the project and after 
        completion. 
           For purposes of this subdivision, the quantity of asbestos 
        containing material applies separately for every project. 
           Sec. 2.  Laws 1997, chapter 113, section 6, subdivision 5, 
        is amended to read: 
           Subd. 5.  [LICENSE FEES.] The license fees for assisted 
        living home care providers shall be as follows: 
           (1) $125 annually for those providers serving a monthly 
        average of 15 or fewer clients, and for assisted living 
        providers of all sizes during the first year of operation; 
           (2) $200 annually for those providers serving a monthly 
        average of 16 to 30 clients; 
           (3) $375 annually for those providers serving a monthly 
        average of 31 to 50 clients; and 
           (4) $625 annually for those providers serving a monthly 
        average of 50 51 or more clients. 
           Sec. 3.  Laws 1997, chapter 202, article 1, section 13, is 
        amended to read: 
        Sec. 13.  OFFICE OF TECHNOLOGY         5,161,000      2,777,000 
        $2,326,000 the first year and 
        $2,377,000 the second year are for the 
        administrative operations of the office 
        of technology. 
        $935,000 the first year is for the 
        North Star online information service 
        under new Minnesota Statutes, section 
        16E.07.  Any unencumbered balance 
        remaining in the first year does not 
        cancel and is available for the second 
        year of the biennium. 
        $500,000 the first year is to develop 
        an electronic system to allow the 
        public to retrieve by computer business 
        license information prepared by the 
        commissioner of trade and economic 
        development, as required by new 
        Minnesota Statutes, section 16E.08.  
        Any unencumbered balance remaining in 
        the first year does not cancel and is 
        available for the second year of the 
        biennium.  The executive director shall 
        report to the legislature by January 
        15, 1998, on progress of the project. 
        $400,000 the first year and $400,000 
        the second year are to develop a United 
        Nations trade point in the state under 
        new Minnesota Statutes, section 
        16E.11.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        $500,000 the first year is to support 
        activities associated with a 
        plenipotentiary conference of the 
        International Telecommunications Union. 
        $500,000 the first year is to operate 
        the Internet Center under new Minnesota 
        Statutes, section 16E.12, and to 
        develop community technology resources 
        under new Minnesota Statutes, section 
        16E.13.  Any unencumbered balance 
        remaining in the first year does not 
        cancel and is available for the second 
        year of the biennium. 
           Sec. 4.  Laws 1997, chapter 203, article 1, section 3, 
        subdivision 2, is amended to read: 
        Subd. 2.  Health Systems
        and Special Populations               48,517,000     48,233,000
                      Summary by Fund
        General              39,295,000    38,998,000
        State Government
        Special Revenue       9,222,000     9,235,000
        [FEES; DRUG AND ALCOHOL COUNSELOR 
        LICENSE.] When setting fees for the 
        drug and alcohol counselor license, the 
        department is exempt from Minnesota 
        Statutes, section 16A.1285, subdivision 
        2. 
        [STATE VITAL STATISTICS REDESIGN 
        PROJECT ACCOUNT.] The amount 
        appropriated from the state government 
        special revenue fund for the vital 
        records redesign project shall be 
        available until expended for 
        development and implementation. 
        [WIC PROGRAM.] Of this appropriation, 
        $650,000 in 1998 is provided to 
        maintain services of the program, 
        $700,000 in 1998 and $700,000 in 1999 
        is added to the base level funding for 
        the WIC food program in order to 
        maintain the existing level of the 
        program, and $100,000 in 1998 is for 
        the commissioner to develop and 
        implement an outreach program to 
        apprise potential recipients of the WIC 
        food program of the importance of good 
        nutrition and the availability of the 
        program. 
        [WIC TRANSFERS.] General fund 
        appropriations for the women, infants, 
        and children (WIC) food supplement 
        program are available for either year 
        of the biennium.  Transfers of 
        appropriations between fiscal years 
        must be for the purpose of maximizing 
        federal funds or minimizing 
        fluctuations in the number of 
        participants.  
        [LOCAL PUBLIC HEALTH FINANCING.] Of the 
        general fund appropriation, $5,000,000 
        each year shall be disbursed for local 
        public health financing and shall be 
        distributed according to the community 
        health service subsidy formula in 
        Minnesota Statutes, section 145A.13.  
        [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
        NEEDS CARRYOVER.] General fund 
        appropriations for treatment services 
        in the services for children with 
        special health care needs program are 
        available for either year of the 
        biennium. 
        [HEALTH CARE ASSISTANCE FOR DISABLED 
        CHILDREN INELIGIBLE FOR SSI.] 
        Notwithstanding the requirements of 
        Minnesota Rules, part 4705.0100, 
        subpart 14, children who:  (a) are 
        eligible for medical assistance as of 
        June 30, 1997, and become ineligible 
        for medical assistance due to changes 
        in supplemental security income 
        disability standards for children 
        enacted in (PRWORA) Public Law Number 
        104-193; and (b) are not eligible for 
        MinnesotaCare, are eligible for health 
        care services through Minnesota 
        services for children with special 
        health care needs under Minnesota 
        Rules, parts 4705.0100 to 4705.1600 for 
        the fiscal year ending June 30, 1998, 
        until eligibility for medical 
        assistance is reestablished.  The 
        commissioner of health shall report to 
        the legislature by March 1, 1998, on 
        the number of children eligible under 
        this provision, their health care 
        needs, family income as a percentage of 
        the federal poverty level, the extent 
        to which families have employer-based 
        health coverage, and recommendations on 
        how to meet the future needs of 
        children eligible under this provision. 
        [AMERICAN INDIAN DIABETES.] Of this 
        appropriation, $90,000 each year shall 
        be disbursed for a comprehensive 
        school-based intervention program 
        designed to reduce the risk factors 
        associated with diabetes among American 
        Indian school children in grades 1 
        through 4. The appropriation for 1998 
        may be carried forward to 1999.  The 
        appropriation for fiscal year 1999 is 
        available only if matched by $1 of 
        nonstate money for each $1 of the 
        appropriation and may be expended in 
        either year of the biennium.  The 
        commissioner shall convene an American 
        Indian diabetes prevention advisory 
        task force.  The task force must 
        include representatives from the 
        American Indian tribes located in the 
        state and urban American Indian 
        representatives.  The task force shall 
        advise the commissioner on the 
        adaptation of curricula and the 
        dissemination of information designed 
        to reduce the risk factors associated 
        with diabetes among American Indian 
        school children in grades 1 through 4.  
        The curricula and information must be 
        sensitive to traditional American 
        Indian values and culture and must 
        encourage full participation by the 
        American Indian community. 
        [HOME VISITING PROGRAMS.] (a) Of this 
        appropriation, $140,000 in 1998 and 
        $870,000 in 1999 is for the home 
        visiting programs for infant care under 
        Minnesota Statutes, section 145A.16.  
        These amounts are available until June 
        30, 1999. 
        (b) Of this appropriation, $225,000 in 
        1998 and $180,000 in 1999 is to 
        continue funding the home visiting 
        programs that received one-year funding 
        under Laws 1995 1996, chapter 480 408, 
        article 1, section 9.  This amount is 
        available until expended. 
        [FETAL ALCOHOL SYNDROME.] Of the 
        general fund appropriation, $625,000 
        each year of the biennium shall be 
        disbursed to prevent and reduce harm 
        from fetal alcohol syndrome and fetal 
        alcohol effect.  
        [COMPLAINT INVESTIGATIONS.] Of the 
        appropriation, $127,000 each year from 
        the state government special revenue 
        fund, and $75,000 each year from the 
        general fund, is for the commissioner 
        to conduct complaint investigations of 
        nursing facilities, hospitals and home 
        health care providers. 
        [COMPLEMENTARY MEDICINE STUDY.] (a) Of 
        the general fund appropriation, $20,000 
        in fiscal year 1998 shall be disbursed 
        for the commissioner of health, in 
        consultation with the commissioner of 
        commerce, to conduct a study based on 
        existing literature, information, and 
        data on the scope of complementary 
        medicine offered in this state.  The 
        commissioner shall: 
        (1) include the types of complementary 
        medicine therapies available in this 
        state; 
        (2) contact national and state 
        complementary medicine associations for 
        literature, information, and data; 
        (3) conduct a general literary review 
        for information and data on 
        complementary medicine; 
        (4) contact the departments of commerce 
        and human services for information on 
        existing registrations, licenses, 
        certificates, credentials, policies, 
        and regulations; and 
        (5) determine by sample, if 
        complementary medicine is currently 
        covered by health plan companies and 
        the extent of the coverage. 
        In conducting this review, the 
        commissioner shall consult with the 
        office of alternative medicine through 
        the National Institute of Health. 
        (b) The commissioner shall, in 
        consultation with the advisory 
        committee, report the study findings to 
        the legislature by January 15, 1998.  
        As part of the report, the commissioner 
        shall make recommendations on whether 
        the state should credential or regulate 
        any of the complementary medicine 
        providers. 
        (c) The commissioner shall appoint an 
        advisory committee to provide expertise 
        and advice on the study.  The committee 
        must include representation from the 
        following groups:  health care 
        providers, including providers of 
        complementary medicine; health plan 
        companies; and consumers.  The advisory 
        committee is governed by Minnesota 
        Statutes, section 15.059, for 
        membership terms and removal of members.
        (d) For purposes of this study, the 
        term "complementary medicine" includes, 
        but is not limited to, acupuncture, 
        homeopathy, manual healing, 
        macrobiotics, naturopathy, biofeedback, 
        mind/body control therapies, 
        traditional and ethnomedicine 
        therapies, structural manipulations and 
        energetic therapies, bioelectromagnetic 
        therapies, and herbal medicine. 
        [DOWN'S SYNDROME.] Of the general fund 
        appropriation, $15,000 in fiscal year 
        1998 shall be disbursed for a grant to 
        a nonprofit organization that provides 
        support to individuals with Down's 
        Syndrome and their families, for the 
        purpose of providing all obstetricians, 
        certified nurse-midwives, and family 
        physicians licensed to practice in this 
        state with informational packets on 
        Down's Syndrome.  The packets must 
        include, at a minimum, a fact sheet on 
        Down's Syndrome, a list of counseling 
        and support groups for families with 
        children with Down's Syndrome, and a 
        list of special needs adoption 
        resources.  The informational packets 
        must be made available to any pregnant 
        patient who has tested positive for 
        Down's Syndrome, either through a 
        screening test or amniocentesis. 
        [NEWBORN SCREENING FOR HEARING LOSS 
        PROGRAM IMPLEMENTATION PLAN.] (a) Of 
        the general fund appropriation, $18,000 
        in fiscal year 1998 shall be disbursed 
        to pay the costs of coordinating with 
        hospitals, the medical community, 
        audiologists, insurance companies, 
        parents, and deaf and hard-of-hearing 
        citizens to establish and implement a 
        voluntary plan for hospitals and other 
        health care facilities to screen all 
        infants for hearing loss. 
        (b) The plan to achieve universal 
        screening of infants for hearing loss 
        on a voluntary basis shall be 
        formulated by a department work group, 
        including the following representatives:
        (1) a representative of the health 
        insurance industry designated by the 
        health insurance industry; 
        (2) a representative of the Minnesota 
        Hospital and Healthcare Partnership; 
        (3) a total of two representatives from 
        the following physician groups 
        designated by the Minnesota Medical 
        Association:  pediatrics, family 
        practice, and ENT; 
        (4) two audiologists designated by the 
        Minnesota Speech-Language-Hearing 
        Association and the Minnesota Academy 
        of Audiology; 
        (5) a representative of hospital 
        neonatal nurseries; 
        (6) a representative of part H (IDEA) 
        early childhood special education; 
        (7) the commissioner of health or a 
        designee; 
        (8) a representative of the department 
        of human services; 
        (9) a public health nurse; 
        (10) a parent of a deaf or 
        hard-of-hearing child; 
        (11) a deaf or hard-of-hearing person; 
        and 
        (12) a representative of the Minnesota 
        commission serving deaf and 
        hard-of-hearing people. 
        Members of the work group shall not 
        collect a per diem or compensation as 
        provided in Minnesota Statutes, section 
        15.0575. 
        (c) The plan shall include measurable 
        goals and timetables for the 
        achievement of universal screening of 
        infants for hearing loss throughout the 
        state and shall include the design and 
        implementation of needed training to 
        assist hospitals and other health care 
        facilities screen infants for hearing 
        loss according to recognized standards 
        of care. 
        (d) The work group shall report to the 
        legislature by January 15, 1998, 
        concerning progress toward the 
        achievement of universal screening of 
        infants in Minnesota for the purpose of 
        assisting the legislature to determine 
        whether this goal can be accomplished 
        on a voluntary basis. 
        [INFANT HEARING SCREENING PROGRAM.] Of 
        the general fund appropriation, $25,000 
        in fiscal year 1998 shall be disbursed 
        for a grant to a hospital in Staples, 
        Minnesota, for the infant hearing 
        screening program. 
        [NURSING HOMES DAMAGED BY FLOODS.] The 
        commissioner shall conduct an expedited 
        process under Minnesota Statutes, 
        section 144A.073, solely to review 
        nursing home moratorium exceptions 
        necessary to repair or replace nursing 
        facilities damaged by spring flooding 
        in 1997.  The commissioner may not 
        issue a request for proposals for 
        moratorium projects not related to 
        spring flooding until this expedited 
        process is completed.  For facilities 
        that require total replacement and the 
        relocation of residents to other 
        facilities during construction, the 
        operating cost payment rates for the 
        new facility shall be determined using 
        the interim and settle-up payment 
        provisions of Minnesota Rules, part 
        9549.0057, and the reimbursement 
        provisions of Minnesota Statutes, 
        section 256B.431, except that 
        subdivision 25, paragraphs (b), clause 
        (3), and (d), shall not apply until the 
        second rate year after the settle-up 
        cost report is filed.  Property-related 
        reimbursement rates shall be determined 
        under Minnesota Rules, chapter 9549, 
        taking into account any federal or 
        state flood-related loans or grants 
        provided to a facility.  The medical 
        assistance costs of this paragraph 
        shall be paid from the amount made 
        available in section 2 of this article 
        for moratorium exceptions.  This 
        paragraph is effective the day 
        following final enactment and is not 
        subject to section 13 of this article. 
           Sec. 5.  [CORRECTION 30.] Laws 1997, chapter 239, article 
        3, section 25, is amended to read: 
           Sec. 25.  [REPEALER.] 
           (a) Minnesota Statutes 1996, sections 119A.30; 145.406; 
        244.09, subdivision 11a; and 609.684, subdivision 2, are 
        repealed. 
           (b) Minnesota Statutes 1996, section 244.09, subdivision 
        11a, is repealed. 
           Sec. 6.  [CORRECTION 30A.] Laws 1997, chapter 239, article 
        3, section 26, is amended to read: 
           Sec. 26.  [EFFECTIVE DATE.] 
           Sections 1 to 20, and 25, paragraph (a), are effective 
        August 1, 1997, and apply to crimes committed on or after that 
        date.  Sections 21 to 23 are effective August 1, 1997, and apply 
        to proceedings conducted on or after that date.  Section 25, 
        paragraph (b), is effective August 1, 1997.  Section 24 is 
        effective July 1, 1997. 
           Sec. 7.  [CORRECTION 36.] Minnesota Statutes 1996, section 
        268.121, as amended by Laws 1997, chapter 74, section 1, is 
        amended to read: 
           268.121 [WAGE REPORTING.] 
           (a) Each employer shall provide the commissioner with a 
        quarterly wage detail report that shall include for each 
        employee the employee's name, social security number, the total 
        wages paid to the employee, and total number of paid hours 
        worked.  For employees exempt from the definition of employee in 
        section 177.23, subdivision 7, clause (6), the employer shall 
        report 40 hours worked for each week any duties were performed 
        by a full-time employee and shall report a reasonable estimate 
        of the hours worked for each week duties were performed by a 
        part-time employee.  The report is due and must be filed on or 
        before the last day of the month following the end of the 
        calendar quarter. 
           (b) An employer need not include the name of the employee 
        or other required information on the wage detail report if 
        disclosure is specifically exempted by federal law. 
           Sec. 8.  [CORRECTION 37.] Minnesota Statutes 1996, section 
        69.021, subdivision 10, as amended by Laws 1997, chapter 233, 
        article 1, section 11, and Laws 1997, chapter 241, article 1, 
        section 7, is amended to read: 
           Subd. 10.  [REDUCTION IN POLICE STATE AID APPORTIONMENT.] 
        (a) The commissioner of revenue shall reduce the apportionment 
        of police state aid under subdivisions 5, paragraph (b), 6, and 
        7a, for eligible employer units by any excess police state aid. 
           (b) "Excess police state aid" is: 
           (1) for counties and for municipalities in which police 
        retirement coverage is provided wholly by the public employees 
        police and fire fund and all police officers are members of the 
        plan governed by sections 353.63 to 353.657, the amount in 
        excess of the employer's total prior calendar year obligation as 
        defined in paragraph (c), as certified by the executive director 
        of the public employees retirement association; 
           (2) for municipalities in which police retirement coverage 
        is provided in part by the public employees police and fire fund 
        governed by sections 353.63 to 353.657 and in part by a local 
        police consolidation account governed by chapter 353A, the 
        amount in excess of the employer's total prior calendar year 
        obligation as defined in paragraph (c), plus the amount of the 
        employer's total prior calendar year obligation under section 
        353A.09, subdivision 5, paragraphs (a) and (b), as certified by 
        the executive director of the public employees retirement 
        association; 
           (3) for municipalities in which police retirement coverage 
        is provided in part by the public employees police and fire fund 
        governed by sections 353.63 to 353.657 and in part by a local 
        police relief association governed by sections 69.77 and 
        423A.01, the amount in excess of the employer's total prior 
        calendar year obligation as defined in paragraph (c), as 
        certified by the executive director of the public employees 
        retirement association, plus the amount of the financial 
        requirements of the relief association certified to the 
        applicable municipality during the prior calendar year under 
        section 69.77, subdivisions 2b and 2c, reduced by the amount of 
        member contributions deducted from the covered salary of the 
        relief association during the prior calendar year under section 
        69.77, subdivision 2a, as certified by the chief administrative 
        officer of the applicable municipality; 
           (4) for the metropolitan airports commission, if there are 
        police officers hired before July 1, 1978, with retirement 
        coverage by the Minneapolis employees retirement fund remaining, 
        the amount in excess of the commission's total prior calendar 
        year obligation as defined in paragraph (c), as certified by the 
        executive director of the public employees retirement 
        association, plus the amount determined by expressing the 
        commission's total prior calendar year contribution to the 
        Minneapolis employees retirement fund under section 422A.101, 
        subdivisions 2 and 2a, as a percentage of the commission's total 
        prior calendar year covered payroll for commission employees 
        covered by the Minneapolis employees retirement fund and 
        applying that percentage to the commission's total prior 
        calendar year covered payroll for commission police officers 
        covered by the Minneapolis employees retirement fund, as 
        certified by the chief administrative officer of the 
        metropolitan airports commission; and 
           (5) for the department of natural resources and for the 
        department of public safety, the amount in excess of the 
        employer's total prior calendar year obligation under section 
        352B.02, subdivision 1c, for plan members who are peace officers 
        under section 69.011, subdivision 1, clause (g), as certified by 
        the executive director of the Minnesota state retirement system. 
           (c) The employer's total prior calendar year obligation 
        with respect to the public employees police and fire plan is the 
        total prior calendar year obligation under section 353.65, 
        subdivision 3, for police officers as defined in section 353.64, 
        subdivision 2, and the actual total prior calendar year 
        obligation under section 353.65, subdivision 3, for 
        firefighters, as defined in section 353.64, subdivision 3, but 
        not to exceed for those firefighters the applicable following 
        amount: 
          municipality                       maximum amount 
          Albert Lea                          $54,157.01
          Anoka                                10,399.31
          Apple Valley                          5,442.44 
          Austin                               49,864.73
          Bemidji                              27,671.38
          Brooklyn Center                       6,605.92
          Brooklyn Park                        24,002.26  
          Burnsville                           15,956.00 
          Cloquet                               4,260.49 
          Coon Rapids                          39,920.00 
          Cottage Grove                         8,588.48
          Crystal                               5,855.00
          East Grand Forks                     51,009.88
          Edina                                32,251.00
          Elk River                             5,216.55
          Ely                                  13,584.16
          Eveleth                              16,288.27
          Fergus Falls                          6,742.00
          Fridley                              33,420.64
          Golden Valley                        11,744.61 
          Hastings                             16,561.00 
          Hopkins                               4,324.23  
          International Falls                  14,400.69 
          Lakeville                               782.35 
          Lino Lakes                            5,324.00 
          Little Falls                          7,889.41 
          Maple Grove                           6,707.54 
          Maplewood                             8,476.69 
          Minnetonka                           10,403.00 
          Montevideo                            1,307.66 
          Moorhead                             68,069.26 
          New Hope                              6,739.72 
          North St. Paul                        4,241.14 
          Northfield                              770.63 
          Owatonna                             37,292.67 
          Plymouth                              6,754.71 
          Red Wing                              3,504.01 
          Richfield                            53,757.96 
          Rosemount                             1,712.55 
          Roseville                             9,854.51 
          St. Anthony                          33,055.00 
          St. Louis Park                       53,643.11 
          Thief River Falls                    28,365.04 
          Virginia                             31,164.46 
          Waseca                               11,135.17 
          West St. Paul                        15,707.20 
          White Bear Lake                       6,521.04 
          Woodbury                              3,613.00 
          any other municipality                    0.00 
           (d) The total amount of excess police state aid must be 
        deposited in the excess police state-aid account in the general 
        fund, administered and distributed as provided in subdivision 11.
           Sec. 9.  [CORRECTION 38.] Laws 1997, chapter 200, article 
        1, section 75, is amended to read: 
           Sec. 75.  [EFFECTIVE DATE.] 
           Section Sections 35 is and 70 are effective the day 
        following final enactment. 
           Sec. 10.  [CORRECTION 39.] Laws 1997, chapter 248, section 
        46, is amended to read: 
           Sec. 46.  [UNLICENSED CHILD CARE PROVIDERS; INTERIM 
        EXPANSION.] 
           (a) Notwithstanding Minnesota Statutes, section 245A.03, 
        subdivision 2, clause (2), until June 30, 1999, nonresidential 
        child care programs or services that are provided by an 
        unrelated individual to persons from two or three other 
        unrelated families are excluded from the licensure provisions of 
        Minnesota Statutes, chapter 245A, provided that: 
           (1) the individual provides services at any one time to no 
        more than four children who are unrelated to the individual; 
           (2) no more than two of the children are under two years of 
        age; and 
           (3) the total number of children being cared for at any one 
        time does not exceed five. 
           (b) Paragraph (a), clauses (1) and (2) to (3), do not apply 
        to nonresidential programs that are provided by an unrelated 
        individual to persons from a single related family. 
           Sec. 11.  [CORRECTION 40.] Laws 1997, chapter 85, article 
        1, section 62, is amended to read: 
           Sec. 62.  [DISCONTINUATION OF WAIVERS.] 
           If the federal government refuses to continue waivers 
        granted on or before August 11 22, 1996, or if the federal 
        government refuses to modify such waivers as requested by the 
        department of human services, then the department of human 
        services may implement the MFIP-S program in compliance with the 
        federal mandate until the end of the next legislative session.  
        The department of human services shall publish its decision to 
        implement the federal mandate in the State Register and propose 
        legislation to address the conflict in the next legislative 
        session. 
           Sec. 12.  [CORRECTION 41.] [REPEALER.] 
           Minnesota Statutes 1996, section 256.73, subdivisions 1 and 
        1b, are repealed effective July 1, 1997. 
           Sec. 13.  [CORRECTION 42.] Minnesota Statutes 1996, section 
        256.045, subdivision 1, as amended by Laws 1997, chapter 85, 
        article 5, section 6, is amended to read: 
           Subdivision 1.  [HEARING AUTHORITY.] A local agency shall 
        initiate an administrative fraud disqualification hearing for 
        individuals accused of wrongfully obtaining assistance or 
        intentional program violations, in lieu of a criminal 
        action when it has not been pursued, in the aid to families with 
        dependent children, MFIP-S, child care, general assistance, 
        family general assistance, Minnesota supplemental aid, medical 
        care, or food stamp programs.  The hearing is subject to the 
        requirements of section 256.045 and the requirements in Code of 
        Federal Regulations, title 7, section 273.16, for the food stamp 
        program and title 45, section 235.112, as of September 30, 1995, 
        for the cash grant and medical care programs. 
           Sec. 14.  [CORRECTION 42A.] Minnesota Statutes 1996, 
        section 256.98, subdivision 1, as amended by Laws 1997, chapter 
        85, article 5, section 8, is amended to read: 
           Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
        who commits any of the following acts or omissions with intent 
        to defeat the purposes of sections 145.891 to 145.897, 256.12, 
        256.031 to 256.361, 256.72 to 256.871, 256.9351 to 256.966, 
        child care, MFIP-S, chapter 256B, 256D, 256J, or 256K, or all of 
        these sections, is guilty of theft and shall be sentenced under 
        section 609.52, subdivision 3, clauses (1) to (5): 
           (1) obtains or attempts to obtain, or aids or abets any 
        person to obtain by means of a willfully false statement or 
        representation, by intentional concealment of any material fact, 
        or by impersonation or other fraudulent device, assistance or 
        the continued receipt of assistance, to include child care or 
        vouchers produced according to sections 145.891 to 145.897 and 
        MinnesotaCare services according to sections 256.9351 to 
        256.966, to which the person is not entitled or assistance 
        greater than that to which the person is entitled; 
           (2) knowingly aids or abets in buying or in any way 
        disposing of the property of a recipient or applicant of 
        assistance without the consent of the county agency with intent 
        to defeat the purposes of sections 145.891 to 145.897, 256.12, 
        256.031 to 256.0361, 256.72 to 256.871, 256.9351 to 256.966, 
        child care, the MFIP-S, chapter 256B, 256D, 256J, or 256K, or 
        all of these sections. 
           The continued receipt of assistance to which the person is 
        not entitled or greater than that to which the person is 
        entitled as a result of any of the acts, failure to act, or 
        concealment described in this subdivision shall be deemed to be 
        continuing offenses from the date that the first act or failure 
        to act occurred. 
           Sec. 15.  [CORRECTION 42B.] Minnesota Statutes 1996, 
        section 256.98, is amended by adding a subdivision to read: 
           Subd. 9.  [WELFARE REFORM COVERAGE.] All references to 
        MFIP-S or Minnesota family investment program-statewide 
        contained in sections 256.017, 256.019, 256.045, 256.046, and 
        256.98 to 256.9866 shall be construed to include all variations 
        of the Minnesota family investment program including, but not 
        limited to, chapter 256J, MFIP-S, MFIP-R, and chapter 256K. 
           Sec. 16.  [CORRECTION 50.] Minnesota Statutes 1996, section 
        62J.54, as amended by Laws 1997, chapter 228, section 2, is 
        amended to read: 
           62J.54 [IDENTIFICATION AND IMPLEMENTATION OF UNIQUE 
        IDENTIFIERS.] 
           Subdivision 1.  [UNIQUE IDENTIFICATION NUMBER FOR HEALTH 
        CARE PROVIDER ORGANIZATIONS.] (a) Not later than 24 months after 
        the date on which a unique health identifier for health care 
        providers is adopted or established under sections 1171 to 1179 
        of Public Law Number 104-191, 110 Statutes at Large 1936 United 
        States Code, title 42, sections 1320d to 1320d-8 (1996 and 
        subsequent amendments), all group purchasers and health care 
        providers in Minnesota shall use a unique identification number 
        to identify health care provider organizations, except as 
        provided in paragraph (b). 
           (b) Small health plans, as defined by the federal Secretary 
        of Health and Human Services under section 1175 of Public Law 
        Number 104-191, 110 Statutes at Large 1936 United States Code, 
        title 42, section 1320d-4 (1996 and subsequent amendments), 
        shall use a unique identification number to identify health 
        provider organizations no later than 36 months after the date on 
        which a unique health identifier for health care providers is 
        adopted or established under sections 1171 to 1179 of Public Law 
        Number 104-191, 110 Statutes at Large 1936 United States Code, 
        title 42, sections 1320d to 1320d-8 (1996 and subsequent 
        amendments). 
           (c) The unique health identifier for health care providers 
        adopted or established by the federal Secretary of Health and 
        Human Services under sections 1171 to 1179 of Public Law Number 
        104-191, 110 Statutes at Large 1936 United States Code, title 
        42, sections 1320d to 1320d-8 (1996 and subsequent amendments), 
        shall be used as the unique identification number for health 
        care provider organizations. 
           (d) Provider organizations required to have a unique health 
        identifier are:  
           (1) hospitals licensed under chapter 144; 
           (2) nursing homes and hospices licensed under chapter 144A; 
           (3) subacute care facilities; 
           (4) individual providers organized as a clinic or group 
        practice; 
           (5) independent laboratory, pharmacy, surgery, radiology, 
        or outpatient facilities; 
           (6) ambulance services licensed under chapter 144; 
           (7) special transportation services certified under chapter 
        174; and 
           (8) other provider organizations as required by the federal 
        Secretary of Health and Human Services under sections 1171 to 
        1179 of Public Law Number 104-191, 110 Statutes at Large 
        1936 United States Code, title 42, sections 1320d to 1320d-8 
        (1996 and subsequent amendments).  
           Provider organizations shall obtain a unique health 
        identifier from the federal Secretary of Health and Human 
        Services using the process prescribed by the Secretary. 
           (e) Only the unique health care provider organization 
        identifier shall be used for purposes of submitting and 
        receiving claims, and in conjunction with other data collection 
        and reporting functions. 
           (f) The commissioner of health may contract with the 
        federal Secretary of Health and Human Services or the 
        Secretary's agent to implement this subdivision. 
           Subd. 2.  [UNIQUE IDENTIFICATION NUMBER FOR INDIVIDUAL 
        HEALTH CARE PROVIDERS.] (a) Not later than 24 months after the 
        date on which a unique health identifier for health care 
        providers is adopted or established under sections 1171 to 1179 
        of Public Law Number 104-191, 110 Statutes at Large 1936 United 
        States Code, title 42, sections 1320d to 1320d-8 (1996 and 
        subsequent amendments), all group purchasers and health care 
        providers in Minnesota shall use a unique identification number 
        to identify an individual health care provider, except as 
        provided in paragraph (b). 
           (b) Small health plans, as defined by the federal Secretary 
        of Health and Human Services under section 1175 of Public Law 
        Number 104-191, 110 Statutes at Large 1936 United States Code, 
        title 42, section 1320d-4 (1996 and subsequent amendments), 
        shall use a unique identification number to identify an 
        individual health care provider no later than 36 months after 
        the date on which a unique health identifier for health care 
        providers is adopted or established under sections 1171 to 1179 
        of Public Law Number 104-191, 110 Statutes at Large 1936 United 
        States Code, title 42, sections 1320d to 1320d-8 (1996 and 
        subsequent amendments). 
           (c) The unique health identifier for health care providers 
        adopted or established by the federal Secretary of Health and 
        Human Services under sections 1171 to 1179 of Public Law Number 
        104-191, 110 Statutes at Large 1936 United States Code, title 
        42, sections 1320d to 1320d-8 (1996 and subsequent amendments), 
        shall be used as the unique identification number for individual 
        health care providers.  
           (d) Individual providers required to have a unique health 
        identifier are:  
           (1) physicians licensed under chapter 147; 
           (2) dentists licensed under chapter 150A; 
           (3) chiropractors licensed under chapter 148; 
           (4) podiatrists licensed under chapter 153; 
           (5) physician assistants as defined under section 147A.01; 
           (6) advanced practice nurses as defined under section 
        62A.15; 
           (7) doctors of optometry licensed under section 148.57; 
           (8) pharmacists licensed under chapter 151; 
           (9) individual providers who may bill Medicare for medical 
        and other health services as defined in United States Code, 
        title 42, section 1395x(s); 
           (10) individual providers who are providers for state and 
        federal health care programs administered by the commissioner of 
        human services; and 
           (11) other individual providers as required by the federal 
        Secretary of Health and Human Services under sections 1171 to 
        1179 of Public Law Number 104-191, 110 Statutes at Large 
        1936 United States Code, title 42, sections 1320d to 1320d-8 
        (1996 and subsequent amendments). 
           Providers shall obtain a unique health identifier from the 
        federal Secretary of Health and Human Services using the process 
        prescribed by the Secretary.  
           (e) Only the unique individual health care provider 
        identifier shall be used for purposes of submitting and 
        receiving claims, and in conjunction with other data collection 
        and reporting functions. 
           (f) The commissioner of health may contract with the 
        federal Secretary of Health and Human Services or the 
        Secretary's agent to implement this subdivision. 
           Subd. 3.  [UNIQUE IDENTIFICATION NUMBER FOR GROUP 
        PURCHASERS.] (a) Not later than 24 months after the date on 
        which a unique health identifier for employers and health plans 
        is adopted or established under sections 1171 to 1179 of Public 
        Law Number 104-191, 110 Statutes at Large 1936 United States 
        Code, title 42, sections 1320d to 1320d-8 (1996 and subsequent 
        amendments), all group purchasers and health care providers in 
        Minnesota shall use a unique identification number to identify 
        group purchasers, except as provided in paragraph (b). 
           (b) Small health plans, as defined by the federal Secretary 
        of Health and Human Services under section 1175 of Public Law 
        Number 104-191, 110 Statutes at Large 1936 United States Code, 
        title 42, section 1320d-4 (1996 and subsequent amendments), 
        shall use a unique identification number to identify group 
        purchasers no later than 36 months after the date on which a 
        unique health identifier for employers and health plans is 
        adopted or established under sections 1171 to 1179 of Public Law 
        Number 104-191, 110 Statutes at Large 1936 United States Code, 
        title 42, sections 1320d to 1320d-8 (1996 and subsequent 
        amendments).  
           (c) The unique health identifier for health plans and 
        employers adopted or established by the federal Secretary of 
        Health and Human Services under sections 1171 to 1179 of Public 
        Law Number 104-191, 110 Statutes at Large 1936 United States 
        Code, title 42, sections 1320d to 1320d-8 (1996 and subsequent 
        amendments), shall be used as the unique identification number 
        for group purchasers.  
           (d) Group purchasers shall obtain a unique health 
        identifier from the federal Secretary of Health and Human 
        Services using the process prescribed by the Secretary. 
           (e) The unique group purchaser identifier, as described in 
        this section, shall be used for purposes of submitting and 
        receiving claims, and in conjunction with other data collection 
        and reporting functions. 
           (f) The commissioner of health may contract with the 
        federal Secretary of Health and Human Services or the 
        Secretary's agent to implement this subdivision. 
           Subd. 4.  [UNIQUE PATIENT IDENTIFICATION NUMBER.] (a) Not 
        later than 24 months after the date on which a unique health 
        identifier for individuals is adopted or established 
        under sections 1171 to 1179 of Public Law Number 104-191, 110 
        Statutes at Large 1936 United States Code, title 42, sections 
        1320d to 1320d-8 (1996 and subsequent amendments), all group 
        purchasers and health care providers in Minnesota shall use a 
        unique identification number to identify each patient who 
        receives health care services in Minnesota, except as provided 
        in paragraph (b). 
           (b) Small health plans, as defined by the federal Secretary 
        of Health and Human Services under section 1175 of Public Law 
        Number 104-191, 110 Statutes at Large 1936 United States Code, 
        title 42, section 1320d-4 (1996 and subsequent amendments), 
        shall use a unique identification number to identify each 
        patient who receives health care services in Minnesota no later 
        than 36 months after the date on which a unique health 
        identifier for individuals is adopted or established under 
        sections 1171 to 1179 of Public Law Number 104-191, 110 Statutes 
        at Large 1936 United States Code, title 42, sections 1320d to 
        1320d-8 (1996 and subsequent amendments). 
           (c) The unique health identifier for individuals adopted or 
        established by the federal Secretary of Health and Human 
        Services under sections 1171 to 1179 of Public Law Number 
        104-191, 110 Statutes at Large 1936 United States Code, title 
        42, sections 1320d to 1320d-8 (1996 and subsequent amendments), 
        shall be used as the unique patient identification number, 
        except as provided in paragraphs (e) and (f). 
           (d) The unique patient identification number shall be used 
        by group purchasers and health care providers for purposes of 
        submitting and receiving claims, and in conjunction with other 
        data collection and reporting functions. 
           (e) Within the limits of available appropriations, the 
        commissioner shall develop a proposal for an alternate numbering 
        system for patients who do not have or refuse to provide their 
        social security numbers, if: 
           (1) a unique health identifier for individuals is adopted 
        or established under sections 1171 to 1179 of Public Law Number 
        104-191, 110 Statutes at Large 1936 United States Code, title 
        42, sections 1320d to 1320d-8 (1996 and subsequent amendments); 
           (2) the unique health identifier is the social security 
        number of the patient; 
           (3) there is no federal alternate numbering system for 
        patients who do not have or refuse to provide their social 
        security numbers; and 
           (4) federal law or the federal Secretary of Health and 
        Human Services explicitly allows a state to develop an alternate 
        numbering system for patients who do not have or refuse to 
        provide their social security numbers. 
           (f) If an alternate numbering system is developed under 
        paragraph (e), patients who use numbers issued by the alternate 
        numbering system are not required to provide their social 
        security numbers and group purchasers or providers may not 
        demand the social security numbers of patients who provide 
        numbers issued by the alternate numbering system.  If an 
        alternate numbering system is developed under paragraph (e), 
        group purchasers and health care providers shall establish 
        procedures to notify patients that they can elect not to have 
        their social security number used as the unique patient 
        identifier. 
           (g)  The commissioner of health may contract with the 
        federal Secretary of Health and Human Services or the 
        Secretary's agent to implement this subdivision. 
           Sec. 17.  [CORRECTION 53.] Laws 1997, chapter 239, article 
        1, section 12, subdivision 4, is amended to read: 
        Subd. 4.  Community Services 
            80,387,000     84,824,000 
        $225,000 each year is for school-based 
        probation pilot programs.  Of this 
        amount, $150,000 each year is for 
        Dakota county and $75,000 each year is 
        for Anoka county.  This is a one-time 
        appropriation. 
        $50,000 each year is for the Ramsey 
        county enhanced probation pilot 
        project.  The appropriation may not be 
        used to supplant law enforcement or 
        county probation officer positions, or 
        correctional services or programs.  
        This is a one-time appropriation. 
        $200,000 the first year is for the gang 
        intervention pilot project.  This is a 
        one-time appropriation. 
        $50,000 the first year and $50,000 the 
        second year are is for grants to local 
        communities to establish and implement 
        pilot project restorative justice 
        programs.  This is a one-time 
        appropriation. 
        $95,000 the first year is for the 
        Dakota county family group conferencing 
        pilot project established in Laws 1996, 
        chapter 408, article 2, section 9.  
        This is a one-time appropriation. 
        All money received by the commissioner 
        of corrections pursuant to the domestic 
        abuse investigation fee under Minnesota 
        Statutes, section 609.2244, is 
        available for use by the commissioner 
        and is appropriated annually to the 
        commissioner of corrections for costs 
        related to conducting the 
        investigations. 
        $750,000 each year is for an increase 
        in community corrections act subsidy 
        funding.  The funding shall be 
        distributed according to the community 
        corrections aid formula in Minnesota 
        Statutes, section 401.10. 
        $4,000,000 the second year is for 
        juvenile residential treatment grants 
        to counties to defray the cost of 
        juvenile residential treatment.  Eighty 
        percent of this appropriation must be 
        distributed to noncommunity corrections 
        act counties and 20 percent must be 
        distributed to community corrections 
        act counties.  The commissioner shall 
        distribute the money according to the 
        formula contained in Minnesota 
        Statutes, section 401.10.  By January 
        15, counties must submit a report to 
        the commissioner describing the 
        purposes for which the grants were used.
        $60,000 the first year and $60,000 the 
        second year are for the electronic 
        alcohol monitoring of DWI and domestic 
        abuse offenders pilot program. 
        $123,000 each year shall be distributed 
        to the Dodge-Fillmore-Olmsted community 
        corrections agency and $124,000 each 
        year shall be distributed to the 
        Arrowhead regional corrections agency 
        for use in a pilot project to expand 
        the agencies' productive day initiative 
        programs, as defined in Minnesota 
        Statutes, section 241.275, to include 
        juvenile offenders who are 16 years of 
        age and older.  This is a one-time 
        appropriation. 
        $2,000,000 the first year and 
        $2,000,000 the second year are for a 
        statewide probation and supervised 
        release caseload and workload reduction 
        grant program.  Counties that deliver 
        correctional services through Minnesota 
        Statutes, chapter 260, and that qualify 
        for new probation officers under this 
        program shall receive full 
        reimbursement for the officers' 
        salaries and reimbursement for the 
        officers' benefits and support as set 
        forth in the probations standards task 
        force report, not to exceed $70,000 per 
        officer annually.  Positions funded by 
        this appropriation may not supplant 
        existing services.  Position control 
        numbers for these positions must be 
        annually reported to the commissioner 
        of corrections. 
        The commissioner shall distribute money 
        appropriated for state and county 
        probation officer caseload and workload 
        reduction, increased intensive 
        supervised release and probation 
        services, and county probation officer 
        reimbursement according to the formula 
        contained in Minnesota Statutes, 
        section 401.10.  These appropriations 
        may not be used to supplant existing 
        state or county probation officer 
        positions or existing correctional 
        services or programs.  The money 
        appropriated under this provision is 
        intended to reduce state and county 
        probation officer caseload and workload 
        overcrowding and to increase 
        supervision of individuals sentenced to 
        probation at the county level.  This 
        increased supervision may be 
        accomplished through a variety of 
        methods, including but not limited to:  
        (1) innovative technology services, 
        such as automated probation reporting 
        systems and electronic monitoring; (2) 
        prevention and diversion programs; (3) 
        intergovernmental cooperation 
        agreements between local governments 
        and appropriate community resources; 
        and (4) traditional probation program 
        services. 
        $700,000 the first year and $700,000 
        the second year are for grants to 
        judicial districts for the 
        implementation of innovative projects 
        to improve the administration of 
        justice, including, but not limited to, 
        drug courts, night courts, community 
        courts, family courts, and projects 
        emphasizing early intervention and 
        coordination of justice system 
        resources in the resolution of cases.  
        Of this amount, up to $25,000 may be 
        used to develop a gun education 
        curriculum under article 2.  This is a 
        one-time appropriation. 
        During fiscal year 1998, up to $500,000 
        of unobligated funds available under 
        Minnesota Statutes, section 401.10, 
        subdivision 2, from fiscal year 1997 
        may be used for a court services 
        tracking system for the counties.  
        Notwithstanding Minnesota Statutes, 
        section 401.10, subdivision 2, these 
        funds are available for use in any 
        county using the court services 
        tracking system. 
        Before the commissioner uses money that 
        would otherwise cancel to the general 
        fund for the court services tracking 
        system, the proposal for the system 
        must be reviewed by the criminal and 
        juvenile justice information policy 
        group. 
        $52,500 of the amount appropriated to 
        the commissioner in Laws 1995, chapter 
        226, article 1, section 11, subdivision 
        3, for the criterion-related 
        cross-validation study is available 
        until January 1, 1998.  The study must 
        be completed by January 1, 1998. 
           Sec. 18.  [CORRECTION 55.] Minnesota Statutes 1996, section 
        518.6111, subdivision 13, as added by Laws 1997, chapter 203, 
        article 6, section 48, is amended to read: 
           Subd. 13.  [ORDER TERMINATING INCOME WITHHOLDING.] (a) An 
        order terminating income withholding must specify the effective 
        date of the order and reference the initial order or decree that 
        establishes the support obligation and shall be entered once the 
        following conditions have been met: 
           (1) the obligor serves written notice of the application 
        for termination of income withholding by mail upon the obligee 
        at the obligee's last known mailing address, and a duplicate 
        copy of the application is served on the public authority; 
           (2) the application for termination of income withholding 
        specifies the event that terminates the support obligation, the 
        effective date of the termination of the support obligation, and 
        the applicable provisions of the order or decree that 
        established the support obligation; and 
           (3) the application includes the complete name of the 
        obligor's payor of funds, the business mailing address, the 
        court action and court file number, and the support and 
        collections file number, if known.; and 
           (b) (4) after receipt of the application for termination of 
        income withholding, the obligee or the public authority fails 
        within 20 days to request a contested hearing on the issue of 
        whether income withholding of support should continue clearly 
        specifying the basis for the continued support obligation and, 
        ex parte, to stay the service of the order terminating income 
        withholding upon the obligor's payor of funds, pending the 
        outcome of the contest contested hearing. 
           Sec. 19.  [CORRECTION 56.] Laws 1997, chapter 203, article 
        6, section 94, is amended to read: 
           Sec. 94.  [EFFECTIVE DATES.] 
           (a) Section 1 is effective the day following final 
        enactment.  
           (b) Section 3 is effective July 1, 1998. 
           (c) Sections 72 to 83 are effective July 1, 1998. 
           (d) Section 75 applies only to judgments docketed on or 
        after July 1, 1998 October 1, 1997. 
           Sec. 20.  [CORRECTION 57.] Laws 1997, chapter 203, article 
        1, section 2, subdivision 8, is amended to read: 
        Subd. 8.  Continuing Care and 
        Community Support Grants
        General           1,097,832,000 1,165,926,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Community Services Block Grants
            55,641,000     55,641,000 
        [CSSA TRADITIONAL APPROPRIATION.] 
        Notwithstanding Minnesota Statutes, 
        section 256E.06, subdivisions 1 and 2, 
        the appropriations available under that 
        section in fiscal years 1998 and 1999 
        must be distributed to each county 
        proportionately to the aid received by 
        the county in calendar year 1996.  The 
        commissioner, in consultation with 
        counties, shall study the formula 
        limitations in subdivision 2 of that 
        section, and report findings and any 
        recommendations for revision of the 
        CSSA formula and its formula limitation 
        provisions to the legislature by 
        January 15, 1998. 
        (b) Consumer Support Grants
             1,757,000      1,757,000 
        (c) Aging Adult Service Grants
             7,900,000      7,928,000 
        [OMBUDSMAN FOR OLDER MINNESOTANS.] Of 
        this appropriation, $150,000 in fiscal 
        year 1998 and $175,000 in fiscal year 
        1999 is for the board on aging's 
        ombudsman for older Minnesotans to 
        expand its activities relating to home 
        care services and other 
        noninstitutional services, and to 
        develop and implement a continuing 
        education program for ombudsman 
        volunteers.  This appropriation shall 
        become part of base-level funding for 
        the biennium beginning July 1, 1999. 
        [HEALTH INSURANCE COUNSELING.] (a) Of 
        this appropriation, $200,000 each year 
        is for the board on aging for the 
        purpose of health insurance counseling 
        and assistance grants to be awarded to 
        the area agencies on aging. 
        (b) Of the amount in paragraph (a), 
        $100,000 per year is for the area 
        agencies in regions participating in 
        the current health insurance counseling 
        pilot program.  The remaining funding 
        shall be distributed on a competitive 
        basis to area agencies on aging in 
        other regions based on criteria 
        developed jointly by the board on aging 
        and the area agencies on aging.  
        (c) The board shall explore 
        opportunities for obtaining alternative 
        funding from nonstate sources, 
        including contributions from 
        individuals seeking health insurance 
        counseling services. 
        [LIVING-AT-HOME/BLOCK NURSE PROGRAMS.] 
        Of this appropriation, $240,000 each 
        fiscal year is for the commissioner to 
        provide funding to 12 additional 
        living-at-home/block nurse programs; 
        $70,000 for the biennium is for the 
        commissioner to increase funding for 
        certain living-at-home/block nurse 
        programs so that funding for all 
        programs is at the same level for each 
        fiscal year; and $50,000 each fiscal 
        year is for the commissioner to provide 
        additional contract funding for the 
        organization awarded the contract for 
        the living-at-home/block nurse program. 
        [CONGREGATE AND HOME-DELIVERED MEALS.] 
        The supplemental funding for nutrition 
        programs serving counties where 
        congregate and home-delivered meals 
        were locally financed prior to 
        participation in the nutrition program 
        of the Older Americans Act shall be 
        awarded at no less than the same levels 
        as in fiscal year 1997. 
        [EPILEPSY LIVING SKILLS.] Of this 
        appropriation, $30,000 each year is for 
        the purposes of providing increased 
        funding for the living skills training 
        program for persons with intractable 
        epilepsy who need assistance in the 
        transition to independent living.  This 
        amount must be included in the base 
        amount for this program. 
        (d) Deaf and Hard-of-Hearing 
        Services Grants
             1,524,000      1,424,000 
        [ASSISTANCE DOGS.] Of this 
        appropriation, $50,000 for the biennium 
        is for the commissioner to provide 
        grants to Minnesota nonprofit 
        organizations that train or provide 
        assistance dogs for persons with 
        disabilities.  This appropriation shall 
        not become part of the base for the 
        biennium beginning July 1, 1999. 
        [GRANT FOR SERVICES TO DEAF-BLIND 
        CHILDREN AND PERSONS.] Of this 
        appropriation, $150,000 for the 
        biennium is for a grant to an 
        organization that provides services to 
        deaf-blind persons.  The grant must be 
        used to provide additional services to 
        deaf-blind children and their 
        families.  Such services may include 
        providing intervenors to assist 
        deaf-blind children in participating in 
        their communities, and family education 
        specialists to teach siblings and 
        parents skills to support the 
        deaf-blind child in the family.  The 
        commissioner shall use a 
        request-for-proposal process to award 
        the grants in this paragraph. 
        Of this appropriation, $150,000 for the 
        biennium is for a grant to an 
        organization that provides services to 
        deaf-blind persons.  The grant must be 
        used to provide assistance to 
        deaf-blind persons who are working 
        towards establishing and maintaining 
        independence.  The commissioner shall 
        use a request-for-proposal process to 
        award the grants in this paragraph. 
        An organization that receives a grant 
        under this provision may expend the 
        grant for any purpose authorized by 
        this provision, and in either year of 
        the biennium. 
        [GRANT FOR SERVICES TO DEAF PERSONS 
        WITH MENTAL ILLNESS.] Of this 
        appropriation, $100,000 the first year 
        and $50,000 the second year is for a 
        grant to a nonprofit agency that 
        currently serves deaf and 
        hard-of-hearing adults with mental 
        illness through residential programs 
        and supported housing outreach 
        activities.  The grant must be used to 
        continue or maintain community support 
        services for deaf and hard-of-hearing 
        adults with mental illness who use or 
        wish to use sign language as their 
        primary means of communication. 
        [ASSESSMENTS FOR DEAF, HARD-OF-HEARING 
        AND DEAF-BLIND CHILDREN.] Of this 
        appropriation, $150,000 each year is 
        for the commissioner to establish a 
        grant program for deaf, hard-of-hearing 
        and deaf-blind children in the state.  
        The grant program shall be used to 
        provide specialized statewide 
        psychological and social assessments, 
        family assessments, and school and 
        family consultation and training.  
        Services provided through this program 
        must be provided in cooperation with 
        the Minnesota resource center; the 
        department of children, families, and 
        learning; the St. Paul-Ramsey health 
        and wellness program serving deaf and 
        hard-of-hearing people; and greater 
        Minnesota community mental health 
        centers. 
        (e) Mental Health Grants
            48,796,000     49,896,000 
        [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
        $125,000 for fiscal year 1998 and 
        $125,000 for fiscal year 1999 shall be 
        transferred by the director of the 
        lottery from the lottery prize fund 
        created under Minnesota Statutes, 
        section 349A.10, subdivision 2, to the 
        general fund.  $125,000 for fiscal year 
        1998 and $125,000 for fiscal year 1999 
        is appropriated from the general fund 
        to the commissioner for the purposes of 
        a grant to a compulsive gambling 
        council located in St. Louis county for 
        a statewide compulsive gambling 
        prevention and education project for 
        adolescents. 
        [CAMP.] Of this appropriation, $30,000 
        for the biennium is from the mental 
        health special projects account, for 
        adults and children with mental illness 
        from across the state for a camping 
        program which utilizes the Boundary 
        Waters Canoe Area and is cooperatively 
        sponsored by client advocacy, mental 
        health treatment, and outdoor 
        recreation agencies. 
        (f) Developmental Disabilities
        Support Grants
             6,448,000      6,398,000 
        (g) Medical Assistance Long-Term 
        Care Waivers and Home Care
           249,512,000    299,186,000 
        [COUNTY WAIVERED SERVICES RESERVE.] 
        Notwithstanding the provisions of 
        Minnesota Statutes, section 256B.092, 
        subdivision 4, and Minnesota Rules, 
        part 9525.1830, subpart 2, the 
        commissioner may approve written 
        procedures and criteria for the 
        allocation of home- and community-based 
        waivered services funding for persons 
        with mental retardation or related 
        conditions which enables a county to 
        maintain a reserve resource account.  
        The reserve resource account may not 
        exceed five percent of the county 
        agency's total annual allocation of 
        home- and community-based waivered 
        services funds.  The reserve may be 
        utilized to ensure the county's ability 
        to meet the changing needs of current 
        recipients, to ensure the health and 
        safety needs of current recipients, or 
        to provide short-term emergency 
        intervention care to eligible waiver 
        recipients. 
        [REIMBURSEMENT INCREASES.] (a) 
        Effective for services rendered on or 
        after July 1, 1997, the commissioner 
        shall increase reimbursement or 
        allocation rates by five percent, and 
        county boards shall adjust provider 
        contracts as needed, for home and 
        community-based waiver services for 
        persons with mental retardation or 
        related conditions under Minnesota 
        Statutes, section 256B.501; home and 
        community-based waiver services for the 
        elderly under Minnesota Statutes, 
        section 256B.0915; community 
        alternatives for disabled individuals 
        waiver services under Minnesota 
        Statutes, section 256B.49; community 
        alternative care waiver services under 
        Minnesota Statutes, section 256B.49; 
        traumatic brain injury waiver services 
        under Minnesota Statutes, section 
        256B.49; nursing services and home 
        health services under Minnesota 
        Statutes, section 256B.0625, 
        subdivision 6a; personal care services 
        and nursing supervision of personal 
        care services under Minnesota Statutes, 
        section 256B.0625, subdivision 19a; 
        private duty nursing services under 
        Minnesota Statutes, section 256B.0625, 
        subdivision 7; day training and 
        habilitation services for adults with 
        mental retardation or related 
        conditions under Minnesota Statutes, 
        sections 252.40 to 252.47; physical 
        therapy services under Minnesota 
        Statutes, sections 256B.0625, 
        subdivision 8, and 256D.03, subdivision 
        4; occupational therapy services under 
        Minnesota Statutes, sections 256B.0625, 
        subdivision 8a, and 256D.03, 
        subdivision 4; speech-language therapy 
        services under Minnesota Statutes, 
        section 256D.03, subdivision 4, and 
        Minnesota Rules, part 9505.0390; 
        respiratory therapy services provided 
        in an outpatient or clinic setting 
        under Minnesota Statutes, section 
        sections 256B.0625, subdivision 4, and 
        256D.03, subdivision 4, and Minnesota 
        Rules, part 9505.0295; dental services 
        under Minnesota Statutes, sections 
        256B.0625, subdivision 9, and 256D.03, 
        subdivision 4, except that this 
        increase does not apply to dental 
        services provided under the 
        MinnesotaCare program and the 
        provisions of Minnesota Statutes, 
        section 256.9362, subdivision 1, do not 
        apply; alternative care services under 
        Minnesota Statutes, section 256B.0913; 
        adult residential program grants under 
        Minnesota Rules, parts 9535.2000 to 
        9535.3000; adult and family community 
        support grants under Minnesota Rules, 
        parts 9535.1700 to 9535.1760; and 
        semi-independent living services under 
        Minnesota Statutes, section 252.275, 
        including SILS funding under county 
        social services grants formerly funded 
        under Minnesota Statutes, chapter 
        256I.  The commissioner shall also 
        increase prepaid medical assistance 
        program capitation rates as appropriate 
        to reflect the rate increases in this 
        paragraph.  Section 13, sunset of 
        uncodified language, does not apply to 
        this paragraph.  
        (b) It is the intention of the 
        legislature that the compensation 
        packages of staff within each service 
        be increased by five percent.  
        (h) Medical Assistance Long-Term
        Care Facilities
           570,291,000    598,115,000 
        [ICF/MR AND NURSING FACILITY 
        INFLATION.] The commissioner shall 
        grant inflation adjustments for nursing 
        facilities with rate years beginning 
        during the biennium according to 
        Minnesota Statutes, section 256B.431, 
        and shall grant inflation adjustments 
        for intermediate care facilities for 
        persons with mental retardation or 
        related conditions with rate years 
        beginning during the biennium according 
        to Minnesota Statutes, section 256B.501.
        [MORATORIUM EXCEPTIONS.] Of this 
        appropriation, $500,000 each year shall 
        be disbursed for the medical assistance 
        costs of moratorium exceptions approved 
        by the commissioner of health under 
        Minnesota Statutes, section 144A.073.  
        Unexpended money appropriated for 
        fiscal year 1998 does not cancel but is 
        available for fiscal year 1999.  
        (i) Alternative Care Grants  
        General              48,355,000    32,278,000
        [PREADMISSION SCREENING TRANSFER.] 
        Effective the day following final 
        enactment, up to $40,000 of the 
        appropriation for preadmission 
        screening and alternative care for 
        fiscal year 1997 may be transferred to 
        the health care administration account 
        to pay the state's share of county 
        claims for conducting nursing home 
        assessments for persons with mental 
        illness or mental retardation as 
        required by Public Law Number 100-203. 
        [ALTERNATIVE CARE TRANSFER.] Any money 
        allocated to the alternative care 
        program that is not spent for the 
        purposes indicated does not cancel but 
        shall be transferred to the medical 
        assistance account. 
        [PREADMISSION SCREENING AMOUNT.] The 
        preadmission screening payment to all 
        counties shall continue at the payment 
        amount in effect for fiscal year 1997. 
        [PAS/AC APPROPRIATION.] The 
        commissioner may expend the money 
        appropriated for preadmission screening 
        and the alternative care program for 
        these purposes in either year of the 
        biennium. 
        (j) Group Residential Housing
        General              65,974,000    69,562,000
        (k) Chemical Dependency
        Entitlement Grants
        General              36,634,000    38,741,000
        [CHEMICAL DEPENDENCY FUNDS TRANSFER.] 
        $11,340,000 from the consolidated 
        chemical dependency general reserve 
        fund available in fiscal year 1998 is 
        transferred to the general fund. 
        (l) Chemical Dependency 
        Nonentitlement Grants
        General               5,000,000     5,000,000
           Sec. 21.  [CORRECTION 58.] Minnesota Statutes 1996, section 
        254B.03, subdivision 1, as amended by Laws 1997, chapter 203, 
        article 7, section 17, is amended to read: 
           Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
        agency shall provide chemical dependency services to persons 
        residing within its jurisdiction who meet criteria established 
        by the commissioner for placement in a chemical dependency 
        residential or nonresidential treatment service.  Chemical 
        dependency money must be administered by the local agencies 
        according to law and rules adopted by the commissioner under 
        sections 14.001 to 14.69. 
           (b) In order to contain costs, the county board shall, with 
        the approval of the commissioner of human services, select 
        eligible vendors of chemical dependency services who can provide 
        economical and appropriate treatment.  Unless the local agency 
        is a social services department directly administered by a 
        county or human services board, the local agency shall not be an 
        eligible vendor under section 254B.05.  The commissioner may 
        approve proposals from county boards to provide services in an 
        economical manner or to control utilization, with safeguards to 
        ensure that necessary services are provided.  If a county 
        implements a demonstration or experimental medical services 
        funding plan, the commissioner shall transfer the money as 
        appropriate.  If a county selects a vendor located in another 
        state, the county shall ensure that the vendor is in compliance 
        with the rules governing licensure of programs located in the 
        state. 
           (c) For the biennium ending June 30, 1999, The calendar 
        year 1998 rate for vendors may not increase more than three 
        percent above the rate approved on in effect on January 1, 
        1997.  The calendar year 1999 rate for vendors may not increase 
        more than three percent above the rate in effect on January 1, 
        1998. 
           (d) A culturally specific vendor that provides assessments 
        under a variance under Minnesota Rules, part 9530.6610, shall be 
        allowed to provide assessment services to persons not covered by 
        the variance. 
           Sec. 22.  [CORRECTION 65.] Laws 1997, chapter 200, article 
        1, section 5, subdivision 4, is amended to read: 
        Subd. 4.  Workforce Preparation 
            16,922,000      9,079,000
                      Summary by Fund
        General              16,147,000     8,304,000
        Special Revenue         775,000       775,000
        $775,000 the first year and $775,000 
        the second year is for job training 
        programs under Minnesota Statutes, 
        sections 268.60 to 268.64.  
        Notwithstanding Minnesota Statutes, 
        section 268.022, this appropriation is 
        from the workforce investment fund.  Of 
        this amount, $250,000 each year is for 
        grants to the Ramsey county 
        opportunities industrialization 
        center.  The grants are to be used to 
        (1) offer prevocational training 
        programs and specific vocational 
        training programs involving intensive 
        English as a second language in 
        instruction, and (2) train for and 
        locate entry level jobs including, 
        without limitation, clerical, building 
        maintenance, manufacturing, home 
        maintenance and repair, and certified 
        nursing assistance.  
        $1,815,000 the first year and 
        $1,817,000 the second year is for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  
        $1,050,000 the first year and 
        $1,050,000 the second year is for youth 
        intervention programs under Minnesota 
        Statutes, section 268.30.  Funding from 
        this appropriation may be used to 
        expand existing programs to serve unmet 
        needs and to create new programs in 
        underserved areas.  This appropriation 
        is available until spent. 
        $1,500,000 the first year and 
        $1,500,000 the second year is to 
        supplement the activities of the Job 
        Training Partnership Act Title II-A 
        program as described in United States 
        Code, title 29, sections 1501 to 1792.  
        The commissioner may use up to five 
        percent of this amount of state 
        operations.  The balance of the amount 
        is for services to temporary assistance 
        for needy families (TANF) recipients.  
        This is a one-time appropriation and 
        may not be included in the budget base 
        for the biennium ending June 30, 2001. 
        $75,000 the first year is for the PLATO 
        education partnership pilot program.  
        If the commissioner favorably evaluates 
        the demonstration implementation of 
        PLATO in Fairmont and Owatonna, the 
        commissioner shall select two other 
        communities in which PLATO will be 
        implemented.  Of this amount, not more 
        than $10 is for the demonstration 
        implementations.  This appropriation is 
        available until June 30, 1999.  This is 
        a one-time appropriation and may not be 
        included in the agency's budget base 
        for the biennium ending June 30, 2001. 
        $250,000 the first year and $250,000 
        the second year is for the learn to 
        earn summer youth employment program 
        established under Laws 1995, chapter 
        224, sections 5 and 39.  This 
        appropriation is available until spent. 
        $10,000 the first year and $10,000 the 
        second year are for one-time grants to 
        independent school district No. 2752, 
        Fairmont, for community initiatives.  
        Of the money appropriated for the 
        summer youth program for the first 
        year, $750,000 is immediately 
        available.  Any remaining balance of 
        the immediately available money is 
        available for the year in which it is 
        appropriated.  In addition to the base 
        appropriation, $6,000,000 the first 
        year is for the summer youth program. 
        If the appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available. 
        $700,000 the first year and $700,000 
        the second year is for the Youthbuild 
        program under Minnesota Statutes, 
        sections 268.361 to 268.366.  A 
        Minnesota YOUTHBUILD program funded 
        under this section as authorized in 
        Minnesota Statutes, sections 268.361 to 
        268.367, qualifies as an approved 
        training program under Minnesota Rules, 
        part 5200.0930, subpart 1. 
        $250,000 the first year is for a 
        one-time grant to the displaced 
        homemaker program in the department of 
        economic security and $125,000 the 
        first year and $125,000 the second year 
        are for one-time grants to the St. Paul 
        district 5 planning council.  These 
        grants are to operate a community work 
        empowerment support group demonstration 
        project.  A project consists of 
        empowerment groups of individuals that 
        are in the process of obtaining or have 
        obtained jobs, including those in the 
        welfare-to-work programs, or are 
        working out problems of attaining 
        self-sufficiency.  The groups must 
        separately meet at least monthly for at 
        least two hours.  Each group meeting 
        must include empower mentors whose 
        responsibility will be to conduct the 
        meeting.  Group members must be paid at 
        least $20 for each meeting attended.  
        The sites will report to the 
        commissioner on a semiannual basis 
        regarding the progress achieved at the 
        meetings.  The purpose of the group is 
        to: 
        (1) share information among group 
        members as to the successes and 
        problems encountered in the 
        individual's employment goals; 
        (2) provide a forum for individuals 
        involved in moving to self-sufficiency 
        to share their experiences and 
        strategies and to support and empower 
        each other; and 
        (3) to provide feedback to the 
        commissioner concerning the best 
        strategies to achieve the empowerment 
        support group's objectives. 
        Notwithstanding Minnesota Statutes, 
        section 268.022, subdivision 2, the 
        commissioner of finance shall transfer 
        to the general fund from the dedicated 
        fund $3,500,000 in the first year and 
        $3,500,000 in the second year of the 
        money collected through the special 
        assessment established in Minnesota 
        Statutes, section 268.022, subdivision 
        1. 
        $30,000 $15,000 the first year and 
        $15,000 the second year is for a grant 
        to the city of Champlin for creating 
        and expanding curfew enforcement.  The 
        program must have clearly established 
        neighborhood, community, and family 
        measures of success and must report to 
        the commissioner of economic security 
        on the achievement of these outcomes on 
        or before June 30, 1998. 
        $250,000 the first year is for a 
        one-time grant to Ramsey county to 
        expand the sister-to-sister mentoring, 
        support, and training network program 
        countywide.  This appropriation is in 
        addition to money appropriated under 
        Minnesota Statutes, sections 256J.62 
        and 256J.76. 
        $500,000 is for a grant to the center 
        for victims of torture to design and 
        develop training to educate health care 
        and human service workers on levels of 
        sensitive care and how to make 
        referrals and to establish a network of 
        care providers to do pro bono care for 
        torture survivors so as to enable a 
        rapid integration into communities and 
        labor markets by torture victims.  This 
        is a one-time appropriation requiring a 
        one-to-one nonstate, in-kind match, and 
        is available until expended. 
           Sec. 23.  [CORRECTION 68.] Laws 1995, chapter 248, article 
        13, section 4, subdivision 2, is amended to read: 
           Subd. 2.  [PILOT PROJECT.] Notwithstanding any law to the 
        contrary, the governor shall designate an executive agency that, 
        during the biennium ending department of transportation, until 
        June 30, 1997 1998, is exempt from any law, rule, or 
        administrative procedure that requires approval of the 
        commissioner of administration before an agency enters into a 
        contract.  The agency selected in this subdivision must 
        establish a process for obtaining goods and services that 
        complies with the policies in subdivision 1.  The process must 
        include guidelines to prevent conflicts of interest for agency 
        employees involved in developing bid specifications or 
        proposals, evaluating bids or proposals, entering into 
        contracts, or evaluating the performance of a contractor.  The 
        guidelines must attempt to ensure that such an employee: 
           (1) does not have any financial interest in and does not 
        personally benefit from the contract; 
           (2) does not accept from a contractor or bidder any 
        promise, obligation, contract for future reward, or gift, other 
        than an item of nominal value; and 
           (3) does not appear to have a conflict of interest because 
        of a family or close personal relationship to a contractor or 
        bidder, or because of a past employment or business relationship 
        with a contractor or bidder.  
           Upon request of the agency, the department of 
        administration shall provide the agency technical assistance in 
        designing such a process. 
           Sec. 24.  [CORRECTION 33.] Laws 1997, chapter 231, article 
        3, section 3, subdivision 5, is amended to read: 
           Subd. 5.  [SPECIAL LEVIES.] "Special levies" means those 
        portions of ad valorem taxes levied by a local governmental unit 
        for the following purposes or in the following manner: 
           (1) to pay the costs of the principal and interest on 
        bonded indebtedness or to reimburse for the amount of liquor 
        store revenues used to pay the principal and interest due on 
        municipal liquor store bonds in the year preceding the year for 
        which the levy limit is calculated; 
           (2) to pay the costs of principal and interest on 
        certificates of indebtedness issued for any corporate purpose 
        except for the following: 
           (i) tax anticipation or aid anticipation certificates of 
        indebtedness; 
           (ii) certificates of indebtedness issued under sections 
        298.28 and 298.282; 
           (iii) certificates of indebtedness used to fund current 
        expenses or to pay the costs of extraordinary expenditures that 
        result from a public emergency; or 
           (iv) certificates of indebtedness used to fund an 
        insufficiency in tax receipts or an insufficiency in other 
        revenue sources; 
           (3) to provide for the bonded indebtedness portion of 
        payments made to another political subdivision of the state of 
        Minnesota; 
           (4) to fund payments made to the Minnesota state armory 
        building commission under section 193.145, subdivision 2, to 
        retire the principal and interest on armory construction bonds; 
           (5) for unreimbursed expenses related to flooding that 
        occurred during the first half of calendar year 1997, as allowed 
        by the commissioner of revenue under section 275.74, paragraph 
        (b); 
           (6) for local units of government located in an area 
        designated by the Federal Emergency Management Agency pursuant 
        to a major disaster declaration issued for Minnesota by 
        President Clinton after April 1, 1997, and before April 21 June 
        11, 1997, for the amount of tax dollars lost due to abatements 
        authorized under section 273.123, subdivision 7, and Laws 1997, 
        chapter 231, article 2, section 64, to the extent that they are 
        related to the major disaster and to the extent that neither the 
        state or federal government reimburses the local government for 
        the amount lost; 
           (7) property taxes approved by voters which are levied 
        against the referendum market value as provided under section 
        275.61; 
           (8) to fund matching requirements needed to qualify for 
        federal or state grants or programs to the extent that either 
        (i) the matching requirement exceeds the matching requirement in 
        calendar year 1997, or (ii) it is a new matching requirement 
        that didn't exist prior to 1998; and 
           (9) to pay the expenses reasonably and necessarily incurred 
        in preparing for or repairing the effects of natural disaster 
        including the occurrence or threat of widespread or severe 
        damage, injury, or loss of life or property resulting from 
        natural causes, in accordance with standards formulated by the 
        emergency services division of the state department of public 
        safety, as allowed by the commissioner of revenue under section 
        275.74, paragraph (b). 
           Sec. 25.  [CORRECTION 34.] Laws 1997, chapter 231, article 
        3, section 4, subdivision 2, is amended to read: 
           Subd. 2.  [LEVY LIMIT BASE.] (a) The levy limit base for a 
        local governmental unit for taxes levied in 1997 shall be equal 
        to the sum of: 
           (1) the amount the local governmental unit levied in 1996, 
        less any amount levied for debt, as reported to the department 
        of revenue under section 275.62, subdivision 1, clause (1), and 
        less any tax levied in 1996 against market value as provided for 
        in section 275.61; 
           (2) the amount of aids the local governmental unit was 
        certified to receive in calendar year 1997 under sections 
        477A.011 to 477A.03 before any reductions for state tax 
        increment financing aid under section 273.1399, subdivision 5; 
           (3) the amount of homestead and agricultural credit aid the 
        local governmental unit was certified to receive under section 
        273.1398 in calendar year 1997 before any reductions for tax 
        increment financing aid under section 273.1399, subdivision 5; 
           (4) the amount of local performance aid the local 
        governmental unit was certified to receive in calendar year 1997 
        under section 477A.05; and 
           (5) the amount of any payments certified to the local 
        government unit in 1997 under sections 298.28 and 298.282; and. 
           (6) the amount of any adjustments authorized under section 
        275.72. 
           If a governmental unit was not required to report under 
        section 275.62 for taxes levied in 1997, the commissioner shall 
        request information on levies used for debt from the local 
        governmental unit and adjust its levy limit base accordingly. 
           (b) The levy limit base for a local governmental unit for 
        taxes levied in 1998 is limited to its adjusted levy limit base 
        in the previous year, subject to any adjustments under section 
        275.72. 
           Sec. 26.  [CORRECTION 34A.] Laws 1997, chapter 231, article 
        3, section 4, subdivision 3, is amended to read: 
           Subd. 3.  [ADJUSTED LEVY LIMIT BASE.] For taxes levied in 
        1997 and 1998, the adjusted levy limit is equal to the levy 
        limit base computed under subdivision 2 or section 275.72, 
        multiplied by: 
           (1) one plus a percentage equal to the percentage growth in 
        the implicit price deflator; and 
           (2) for all cities and for counties outside of the 
        seven-county metropolitan area, one plus a percentage equal to 
        the percentage increase in number of households, if any, for the 
        most recent 12-month period for which data is available; and 
           (3) for counties located in the seven-county metropolitan 
        area, one plus a percentage equal to the greater of the 
        percentage increase in the number of households in the county or 
        the percentage increase in the number of households in the 
        entire seven-county metropolitan area for the most recent 
        12-month period for which data is available. 
           Sec. 27.  [CORRECTION 34B.] Laws 1997, chapter 231, article 
        3, section 5, subdivision 2, is amended to read: 
           Subd. 2.  [ADJUSTMENTS FOR ANNEXATION.] If a local 
        governmental unit increases its tax base through annexation of 
        an area which is not the area of an entire local governmental 
        unit, the levy limit base of the local governmental unit in the 
        first year in which the annexation is effective shall be equal 
        to its adjusted levy limit base from the previous established 
        before the adjustment under section 275.71, subdivision 3, for 
        the current levy year multiplied by the ratio of the net tax 
        capacity in the local governmental unit after the annexation 
        compared to its net tax capacity before the annexation. 
           Sec. 28.  [CORRECTION 35.] Laws 1997, chapter 231, article 
        8, section 16, is amended to read: 
           Sec. 16.  [USE OF PRODUCTION TAX PROCEEDS.] 
           The amount distributed to the iron range resources and 
        rehabilitation board under Minnesota Statutes, section 298.28, 
        subdivision 7, that is attributable to the tax increase due to 
        the implicit price deflator increase as provided in Minnesota 
        Statutes, section 298.24, subdivision 1, paragraph (c), for 
        concentrates produced in 1997 shall be distributed to the iron 
        range resources and rehabilitation board and used by the board 
        to make a grant to the city of Hoyt Lakes to be used for the 
        establishment of an industrial park in the city. 
           Sec. 29.  [CORRECTION 45.] Laws 1997, chapter 162, article 
        2, section 31, subdivision 9, is amended to read: 
           Subd. 9.  [DRUG POLICY AND VIOLENCE PREVENTION PROGRAMS.] 
        For drug policy, violence prevention, and family visitation 
        programs: 
             $3,000,000     .....     1998
             $3,000,000     .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year.  
           $197,000 is appropriated from the state government special 
        revenue fund to the commissioner of children, families, and 
        learning for visitation facilities under Minnesota Statutes, 
        sections 256F.09 and 517.08, subdivision 1c.  $96,000 is 
        available for the fiscal year beginning July 1, 1997, and 
        $96,000 is available for the fiscal year beginning July 1, 1998. 
           Any balance in the first year does not cancel, but is 
        available in the second year. 
           Up to $400,000 each year is for grants for mentoring 
        at-risk youth.  Of the fiscal year 1998 appropriation, up to 
        $138,000 and of the fiscal year 1999 appropriation up to 
        $100,000 is for grants under Laws 1995, chapter 226, article 3, 
        section 62.  
           Up to $75,000 each year is for grants to community-based 
        violence prevention councils. 
           Sec. 30.  [CORRECTION 51.] Minnesota Statutes 1996, section 
        119A.04, subdivision 6, as amended by Laws 1997, chapter 162, 
        article 3, section 2, is amended to read: 
           Subd. 6.  [FUNDING FOR TRANSFERRED PROGRAMS.] State 
        appropriations for programs transferred under this section may 
        not be used to replace appropriations for K-12 programs.  State 
        and federal appropriations for programs under section 119A.15, 
        subdivision 5a, transferred from the department of economic 
        security, may not be used to replace, supplement, or supplant 
        federal or state appropriations for any other program in the 
        department. 
           Sec. 31.  [CORRECTION 59A.] Laws 1997, chapter 84, article 
        3, section 9, is amended to read: 
           Sec. 9.  [EFFECTIVE DATE.] 
           Section 1 is effective for refund claims filed for bad 
        debts recognized for federal income tax purposes after June 30, 
        1997. 
           Section 2 is effective for returns filed after January 1, 
        1998. 
           Sections 3 to 4, 5, and 8 are effective July 1, 1997. 
           Section 3 is effective for sales made or leases entered 
        into after June 30, 1997. 
           Sections 6 and 7 are effective for sales and purchases 
        occurring after June 30, 1997. 
           Sec. 32.  [CORRECTION 59B.] Laws 1997, chapter 106, article 
        1, section 19, is amended to read: 
           Sec. 19.  [297F.19] [CIVIL PENALTIES.] 
           Subdivision 1.  [CIVIL ACTION; GENERAL RULE.] The 
        commissioner may recover the amount of any tax due and unpaid 
        under this chapter, as well as interest, and any penalty in a 
        civil action.  The collection of the tax, interest, or penalty 
        is not a bar to any prosecution under this chapter. 
           Subd. 2.  [PENALTY FOR FAILURE TO PAY TAX.] If a tax 
        imposed by this chapter is not paid within the time specified 
        for payment, a penalty is added to the amount required to be 
        shown as tax.  The penalty is five percent of the tax not paid 
        on or before the date specified for payment of the tax if the 
        failure is for not more than 30 days, with an additional penalty 
        of five percent of the amount of tax remaining unpaid during 
        each additional 30 days or fraction of 30 days during which the 
        failure continues, not exceeding 15 percent in the aggregate. 
           Subd. 3.  [PENALTY FOR FAILURE TO MAKE AND FILE RETURN.] If 
        a taxpayer fails to make and file a return within the time 
        prescribed, including an extension, a penalty of five percent of 
        the amount of tax not timely paid is added to the tax. 
           Subd. 4.  [COMBINED PENALTIES.] When penalties are imposed 
        under subdivisions 2 and 3, the penalties imposed under both 
        subdivisions combined must not exceed 38 20 percent in the 
        aggregate. 
           Subd. 5.  [PENALTY FOR INTENTIONAL DISREGARD OF LAW OR 
        RULES.] If part of an additional assessment is due to negligence 
        or intentional disregard of the provisions of the applicable tax 
        laws or rules of the commissioner, but without intent to 
        defraud, there must be added to the tax an amount equal to ten 
        percent of the additional assessment. 
           Subd. 6.  [PENALTY FOR REPEATED FAILURES TO FILE RETURNS OR 
        PAY TAXES.] If there is a pattern by a person of repeated 
        failures to timely file returns or timely pay taxes, and written 
        notice is given that a penalty will be imposed if such failures 
        continue, a penalty of 25 percent of the amount of the tax not 
        timely paid as a result of each such subsequent failure is added 
        to the tax.  The penalty can be abated under the abatement 
        authority in section 270.07, subdivisions 1, paragraph (e), and 
        6. 
           Subd. 7.  [PENALTY FOR FALSE OR FRAUDULENT RETURN; 
        EVASION.] If a person files a false or fraudulent return, or 
        attempts in any manner to evade or defeat a tax or payment of 
        tax, there is imposed on the person a penalty equal to 50 
        percent of the tax due for the period to which the return 
        related, less amounts paid by the person on the basis of the 
        false or fraudulent return. 
           Subd. 8.  [PAYMENT OF PENALTIES.] The penalties imposed by 
        this section are collected and paid in the same manner as taxes. 
           Subd. 9.  [PENALTIES ARE ADDITIONAL.] The civil penalties 
        imposed by this section are in addition to the criminal 
        penalties imposed by this chapter. 
           Sec. 33.  [CORRECTION 59C.] Laws 1997, chapter 231, article 
        7, section 47, is amended to read: 
           Sec. 47.  [EFFECTIVE DATES.] 
           Section 1 is effective for refund claims filed after June 
        30, 1997. 
           Sections 2, 6, 7, 9, 13, 15, 16, 17, 18, 20, 21, 25, 31, 
        and 32 are effective for purchases, sales, storage, use, or 
        consumption occurring after June 30, 1997. 
           Section 3 is effective on July 1, 1997, or upon adoption of 
        the corresponding rules, whichever occurs earlier with the 
        applicable refunds being retroactive to July 1, 1997. 
           Section 4, paragraph (i), clause (iv), is effective for 
        purchases and sales occurring after September 30, 1987; the 
        remainder of section 4 is effective for purchases and sales 
        occurring after June 30, 1997. 
           Section 5, paragraph (h), is effective for purchases and 
        sales occurring after June 30, 1997, and paragraph (i) is 
        effective for purchases and sales occurring after December 31, 
        1992. 
           Sections 8 and 46 are effective July 1, 1998. 
           Sections 10 and 22 are effective for purchases, sales, 
        storage, use, or consumption occurring after August 31, 1996. 
           Sections 11, 12, 33, 34, and 35 are effective July 1, 1997. 
           Sections 14 and 19 are effective for purchases and sales 
        after June 30, 1999. 
           Section 23 is effective January 1, 1997. 
           Section 24 is effective for purchases, sales, storage, use, 
        or consumption occurring after April 30, 1997. 
           Sections 26 and 45 are effective for purchases, sales, 
        storage, use, or consumption occurring after July 31, 1997, and 
        before August 1, 2003. 
           Section 27 is effective for purchases, sales, storage, use, 
        or consumption occurring after May 31, 1997. 
           Section 28 is effective for sales made after December 31, 
        1989, and before January 1, 1997.  The provisions of Minnesota 
        Statutes, section 289A.50, apply to refunds claimed under 
        section 28.  Refunds claimed under section 28 must be filed by 
        the later of December 31, 1997, or the time limit under 
        Minnesota Statutes, section 289A.40, subdivision 1. 
           Section 29 is effective for sales or first use after May 
        31, 1997, and before June 1, 1998. 
           Sections 30, 42, and 43 are effective the day following 
        final enactment. 
           Sections 36 to 39 are effective the day after compliance by 
        the governing body of Cook county with Minnesota Statutes, 
        section 645.021, subdivision 3. 
           Section 40 is effective for STAR funds collected after June 
        30, 1997. 
           Sec. 34.  [CORRECTION 59D.] Minnesota Statutes 1996, 
        section 273.126, subdivision 2, as added by Laws 1997, chapter 
        231, article 1, section 4, is amended to read: 
           Subd. 2.  [INCOME LIMITS.] (a) In order to qualify under 
        class 4d, a unit must be occupied by an individual or 
        individuals whose income is at or below 60 percent of the median 
        area gross income.  If the resident's income met the requirement 
        when the resident first occupied the unit, the income of the 
        resident continues to qualify.  If an individual first occupied 
        a unit before January 1, 1998, the individual's income for 
        purposes of the preceding sentence is the income for calendar 
        year 1996. 
           (b) For purposes of this section, "median area gross income"
        means the greater of (1) the median gross income for the area 
        determined under section 42 of the Internal Revenue Code of 
        1986, as amended through December 31, 1996, or (2) the median 
        gross income for the state. 
           (c) The median gross income must be adjusted for family 
        size. 
           (d) Vacant units qualify as meeting the requirements of 
        this subdivision in the same proportion that total units in the 
        building are subject to rent restriction agreements under 
        subdivision 3 and meet minimum housing standards under 
        subdivision 4.  This paragraph applies only to the extent that 
        units subject to a rent restriction agreement and meeting the 
        minimum housing quality standards are vacant. 
           (e) The owner or manager of the property may comply with 
        this subdivision by obtaining written statements from the 
        residents that their incomes are at or below the limit. 
           Sec. 35.  [CORRECTION 59E.] Laws 1997, chapter 231, article 
        1, section 16, is amended to read: 
           Sec. 16.  [PROPERTY TAX REBATE.] 
           (a) A credit is allowed against the tax imposed on an 
        individual under Minnesota Statutes, chapter 290 equal to 20 
        percent of the qualified property tax paid in calendar year 1997 
        for taxes assessed in 1996.  The credit is allowed only to the 
        individual and spouse, if any, who paid the tax, whether 
        directly, through an escrow arrangement, or under a contractual 
        agreement for the purchase or sale of the property, and without 
        regard to whether the individual qualifies as a claimant under 
        Minnesota Statutes, chapter 290A. 
           (b) For property owned and occupied by the taxpayer, 
        qualified tax means property taxes payable as defined in 
        Minnesota Statutes, section 290A.03, subdivision 13, assessed in 
        1996 and payable in 1997.  
           (c) For a renter, the qualified property tax means the 
        amount of rent constituting property taxes under Minnesota 
        Statutes, section 290A.03, subdivision 11, based on rent paid in 
        1997.  If two or more renters could be claimants under Minnesota 
        Statutes, chapter 290A with regard to the rent constituting 
        property taxes, the rules under Minnesota Statutes, section 
        290A.03, subdivision 8, paragraph (f), applies to determine the 
        amount of the credit for the individual. 
           (d) For an individual who both owned and rented principal 
        residences in calendar year 1997, qualified taxes are the sum of 
        the amounts under paragraphs (a) and (b). 
           (e) If the amount of the credit under this subdivision 
        exceeds the taxpayer's tax liability under this chapter, the 
        commissioner shall refund the excess. 
           (f) To claim a credit under this subdivision, the taxpayer 
        must attach a copy of the property tax statement and certificate 
        of rent paid, as applicable, and provide any additional 
        information the commissioner requires. 
           (g) An amount sufficient to pay refunds under this 
        subdivision is appropriated to the commissioner from the general 
        fund. 
           (h) This credit applies to taxable years beginning after 
        December 31, 1996, and before January 1, 1998. 
           (i) Payment of the credit under this section is subject to 
        Minnesota Statutes, chapter 270A, and any other provision 
        applicable to refunds under Minnesota Statutes, chapter 290. 
           Sec. 36.  [CORRECTION 59F.] Laws 1997, chapter 231, article 
        1, section 19, subdivision 1, is amended to read: 
           Subdivision 1.  [TIF GRANTS.] (a) The commissioner of 
        revenue shall pay grants to municipalities for deficits in tax 
        increment financing districts caused by the changes in class 
        rates under this act.  Municipalities must submit applications 
        for the grants in a form prescribed by the commissioner by no 
        later than March 1 for grants payable during the calendar year.  
        The maximum grant equals the lesser of: 
           (1) for taxes payable in the year before the grant is paid, 
        the reduction in the tax increment financing district's revenues 
        derived from increment resulting from the class rate changes in 
        this article; or 
           (2) the municipality's total tax increments, including 
        unspent increments from previous years, less the amount due 
        during the calendar year to pay (i) bonds issued and sold before 
        the day following final enactment of this act and (ii) binding 
        contracts entered into before the day following final enactment 
        of this act, less the municipality's total tax increments, 
        including unspent increments from previous years.  
           (b) The commissioner of revenue may require applicants for 
        grants or pooling authority under this section to provide any 
        information the commissioner deems appropriate.  The 
        commissioner shall calculate the amount under paragraph (a), 
        clause (2), based on the reports for the tax increment financing 
        district or districts filed with the state auditor on or before 
        July 1 of the year before the year in which the grant is to be 
        paid. 
           (c) This subdivision applies only to deficits in tax 
        increment financing districts for which: 
           (1) the request for certification was made before the 
        enactment date of this act; and 
           (2) all timely reports have been filed with the state 
        auditor, as required by Minnesota Statutes, section 469.175. 
           (d) The commissioner shall pay the grants under this 
        subdivision by December 26 of the year. 
           (e) $2,000,000 is appropriated to the commissioner of 
        revenue to make grants under this section.  This appropriation 
        is available until expended or this section expires under 
        subdivision 3, whichever is earlier.  If the amount of grant 
        entitlements for a year exceed the appropriation, the 
        commissioner shall reduce each grant proportionately so the 
        total equals the amount available. 
           Sec. 37.  [CORRECTION 59G.] Minnesota Statutes 1996, 
        section 270.60, subdivision 4, as added by Laws 1997, chapter 
        231, article 16, section 6, is amended to read: 
           Subd. 4.  [PAYMENTS TO COUNTIES.] (a) The commissioner 
        shall pay to a qualified county in which an Indian gaming casino 
        is located ten percent of the state share of all taxes generated 
        from activities on reservations and collected under a tax 
        agreement under this section with the tribal government for the 
        reservation located in the county.  If the tribe has casinos 
        located in more than one county, the payment must be divided 
        equally among the counties in which the casinos are located. 
           (b) A county qualifies for payments under this subdivision 
        only if one of the following conditions is met: 
           (1) the county's per capita income is less than 80 percent 
        of the state per capita personal income, based on the most 
        recent estimates made by the United States Bureau of Economic 
        Analysis; or 
           (2) 30 percent or more of the total market value of real 
        property in the county is exempt from ad valorem taxation. 
           (c) The commissioner shall make the payments required under 
        this subdivision by February 28 of the year following the year 
        the taxes are collected. 
           (d) An amount sufficient to make the payments authorized by 
        this subdivision, not to exceed $1,100,000 in any fiscal year, 
        is annually appropriated from the general fund to the 
        commissioner.  If the authorized payments exceed the amount of 
        the appropriation, the commissioner shall proportionately reduce 
        the rate so that the total amount equals the appropriation. 
           Sec. 38.  [CORRECTION 59I.] Minnesota Statutes 1996, 
        section 124.239, subdivision 5, as amended by Laws 1997, chapter 
        231, article 1, section 2, is amended to read: 
           Subd. 5.  [LEVY AUTHORIZED.] A district, after local board 
        approval, may levy for costs related to an approved facility 
        plan as follows:  
           (a) if the district has indicated to the commissioner that 
        bonds will be issued, the district may levy for the principal 
        and interest payments on outstanding bonds issued according to 
        subdivision 3 after reduction for any alternative facilities aid 
        received receivable under subdivision 5 5a; or 
           (b) if the district has indicated to the commissioner that 
        the plan will be funded through levy, the district may levy 
        according to the schedule approved in the plan. 
           Sec. 39.  Minnesota Statutes 1996, section 124.239, 
        subdivision 5a, as added by Laws 1997, chapter 231, article 1, 
        section 3, is amended to read:  
           Subd. 5a.  [ALTERNATIVE FACILITIES AID.] A district's 
        alternative facilities aid is the amount equal to the district's 
        annual debt service costs qualifying for aid under subdivision 
        3a, provided that the amount does not exceed the amount 
        certified to be levied for those purposes for taxes payable in 
        1997. 
           Sec. 40.  Minnesota Statutes 1996, section 124.239, is 
        amended by adding a subdivision to read: 
           Subd. 5b.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
        amount not to exceed $17,000,000 is appropriated from the 
        general fund to the commissioner of children, families, and 
        learning for fiscal year 2000 and each year thereafter for 
        payment of alternative facilities aid under subdivision 5a.  The 
        2000 appropriation includes $1,700,000 for 1999 and $15,300,000 
        for 2000. 
           (b) The appropriation in paragraph (a) must be reduced by 
        the amount of any money specifically appropriated for the same 
        purpose in any year from any state fund. 
           Sec. 41.  [REPEALER.] 
           Laws 1997, chapter 231, article 1, section 1, is repealed. 
           Sec. 42.  [CORRECTION 59J.] Minnesota Statutes 1996, 
        section 297A.25, subdivision 71, as added by Laws 1997, chapter 
        231, article 7, section 28, is amended to read: 
           Subd. 71.  [FIREWOOD.] The gross receipts from the sale of 
        and the storage, use, or consumption of wood used for fires for 
        heating, cooking, or any other purpose, except for the 
        generation of electricity, steam, or heat to be sold at retail, 
        are exempt. 
           Sec. 43.  [CORRECTION 59K.] Laws 1997, chapter 231, article 
        2, section 65, is amended to read:  
           Sec. 65.  [DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS 
        PROPERTY TAXES.] 
           (a) Notwithstanding Minnesota Statutes, section 279.01, 
        subdivision 1, a penalty shall not accrue if (1) because of a 
        natural disaster, a taxpayer is unable to pay the first half of 
        the payable 1997 property taxes on class 3a or 3b property, 
        classified under Minnesota Statutes, section 273.13, subdivision 
        24, located in an area designated by the Federal Emergency 
        Management Agency pursuant to a major disaster declaration 
        issued for Minnesota by President Clinton between April 1, 1997, 
        and April 14, 1997, and (2) the taxpayer pays the first half of 
        the payable 1997 taxes by October 15, 1997. 
           (b) If the first one half payment is paid after October 15, 
        1997, then all penalties that would have occurred on after the 
        due date under Minnesota Statutes, section 279.01, subdivision 
        1, shall be charged on the amount of the unpaid tax. 
           (c) The property taxpayer shall attach to the payment a 
        statement that the property is located in a disaster area and 
        qualified for an extension under this section. 
           Sec. 44.  [CORRECTION 59L.] Laws 1997, chapter 231, article 
        16, section 31, is amended to read: 
           Sec. 31.  [EFFECTIVE DATE.] 
           Section 9 is effective for decrees of marriage dissolution, 
        deeds, or other instruments executed and delivered after July 1, 
        1997. 
           Section 10 is effective for assessments made on or after 
        the effective date of Laws 1996, chapter 471, article 2 3, 
        section 32. 
           Section 19 is effective the day following final enactment. 
           Sec. 45.  [CORRECTION 59M.] Minnesota Statutes 1996, 
        section 273.1382, subdivision 1, as added by Laws 1997, chapter 
        231, article 1, section 12, subdivision 1, as amended by Laws 
        1997, chapter 251, section 20, subdivision 1, is amended to read:
           Subdivision 1.  [EDUCATION HOMESTEAD CREDIT.] Each year, 
        beginning with property taxes payable in 1998, the respective 
        county auditors shall determine the local initial tax rate for 
        each school district for the general education levy certified 
        under section 124A.23, subdivision 2 or 3.  That rate plus the 
        school district's education homestead credit tax rate adjustment 
        under section 275.08, subdivision 1e, shall be the general 
        education homestead credit local tax rate for the district.  The 
        auditor shall then determine a general education homestead 
        credit for each homestead within the county equal to 32 percent 
        of the general education homestead credit local tax rate times 
        the net tax capacity of the homestead for the taxes payable 
        year.  The amount of general education homestead credit for a 
        homestead may not exceed $225.  In the case of an agricultural 
        homestead, only the net tax capacity of the house, garage, and 
        surrounding one acre of land shall be used in determining the 
        property's education homestead credit. 
           Subd. 2.  Subdivision 1 is effective for taxes levied in 
        1997, payable in 1998, and thereafter. 
           Sec. 46.  [CORRECTION 64.] Laws 1997, chapter 203, article 
        1, is amended by adding sections to read: 
           Sec. 15.  [AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
        PERIODS.] 
           The commissioner of children, families, and learning may 
        waive requirements under Minnesota Statutes, chapter 119B, for 
        up to nine months in areas where a federal disaster has been 
        declared under United States Code, title 42, section 5121, et 
        seq., or the governor has exercised authority under chapter 12. 
           Sec. 16.  [AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
        PERIODS.] 
           The commissioner of children, families, and learning may 
        waive requirements under Minnesota Statutes, section 268.38 for 
        up to nine months for grantees in areas where a federal disaster 
        has been declared under United States Code, title 42, section 
        5121, et seq., or the governor has exercised authority under 
        chapter 12. 
           Sec. 17.  [AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
        PERIODS.] 
           The commissioner of children, families, and learning may 
        waive requirements under Minnesota Statutes, sections 268.912 to 
        268.916, for up to nine months for Head Start grantees in areas 
        where a federal disaster has been declared under United States 
        Code, title 42, section 5121, et seq., or the governor has 
        exercised authority under chapter 12. 
           Sec. 18.  [WAIVER OF LIMITATION FOR FACILITY CHANGES.] 
           The limitation under Minnesota Statutes 1996, section 
        268.362, subdivision 1, paragraph (a), on the type of facilities 
        which may be rehabilitated, improved, or constructed as part of 
        a work experience component to provide education and work 
        experience to targeted youth is waived and shall include 
        low-income private residences, private businesses, municipal 
        parks, and other land areas impacted by the major natural 
        disaster (flood) declared by President Clinton in the spring of 
        1997. 
           Sec. 19.  [WAIVER ON DEFINITION OF AT-RISK YOUTH.] 
           The limitation on the definition of an at-risk youth under 
        the Minnesota youth program, in Minnesota Statutes 1996, section 
        268.56, subdivision 3, is waived to include a youth affected by 
        the major natural disaster (flood) declared by President Clinton 
        in the spring of 1997.  The waiver is effective until May 30, 
        1998. 
           Sec. 20.  [NOTIFICATION.] 
           The commissioner shall notify the chairs of the senate 
        health and family security committee, health and family security 
        budget division, human resources finance committee, the house 
        health and human services committee, health and human services 
        finance division, and ways and means committee ten days prior to 
        the effective date of any waiver or variance granted under 
        sections 15, 16, and 17. 
           Sec. 47.  [CORRECTION 44.] Minnesota Statutes 1996, section 
        124.2601, subdivision 5, as amended by Laws 1997, chapter 162, 
        article 2, section 19, is amended to read: 
           Subd. 5.  [AID.] Adult basic education aid is equal to the 
        difference between an approved program's adult basic education 
        revenue and its adult basic education levy.  Beginning with 
        levies payable in 1998, if the district does not levy the full 
        amount permitted, the adult education aid must be reduced in 
        proportion to the actual amount levied. 
           Sec. 48.  [CORRECTION 46.] Minnesota Statutes 1996, section 
        119B.13, subdivision 6, as added by Laws 1997, chapter 162, 
        article 4, section 4, is amended to read: 
           Subd. 6.  [PROVIDER PAYMENTS.] Counties shall make vendor 
        payments to the child care provider or pay the parent directly 
        for eligible child care expenses.  If payments for child care 
        assistance are made to providers, the provider shall bill the 
        county for services provided within ten days of the end of the 
        month of service.  If bills are submitted in accordance with the 
        provisions of this subdivision 6, a county shall issue payment 
        to the provider of child care under the child care fund within 
        30 days of receiving an invoice from the provider.  Counties may 
        establish policies that make payments on a more frequent basis.  
        A county's payment policies must be included in the county's 
        child care plan under section 119B.08, subdivision 3. 
           Sec. 49.  [CORRECTION 47.] Minnesota Statutes 1996, section 
        119B.05, subdivision 1, as amended by Laws 1997, chapter 162, 
        article 4, section 19, is amended to read: 
           Subdivision 1.  [ELIGIBLE RECIPIENTS.] Families eligible 
        for child care assistance under the AFDC child care program are: 
           (1) persons receiving services under sections 256.031 
        to 256.04 256.0361 and 256.047 to 256.048; 
           (2) AFDC recipients who are employed or in job search and 
        meet the requirements of section 119B.10; 
           (3) persons who are members of transition year families 
        under section 119B.01, subdivision 16; 
           (4) members of the control group for the STRIDE evaluation 
        conducted by the Manpower Demonstration Research Corporation; 
           (5) AFDC caretakers who are participating in the STRIDE and 
        non-STRIDE AFDC child care program; 
           (6) families who are participating in employment 
        orientation or job search, or other employment or training 
        activities that are included in an approved employability 
        development plan under chapter 256K; and 
           (7) MFIP-S families who are participating in work 
        activities as required in their job search support or employment 
        plan, or in appeals, hearings, assessments, or orientations 
        according to chapter 256J.  Child care assistance to support 
        work activities as described in section 256J.49 must be 
        available according to sections 119B.01, subdivision 8, 121.882, 
        256E.08, 268.916, and 611A.32 and titles IVA, IVB, IVE, and XX 
        of the Social Security Act. 
           Sec. 50.  [CORRECTION 48.] Laws 1997, chapter 162, article 
        4, section 63, subdivision 5, is amended to read: 
           Subd. 5.  [CHILD CARE DEVELOPMENT.] For child care 
        development grants according to Minnesota Statutes, section 
        119B.21: 
             $5,865,000     .....     1998
             $1,865,000     .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Of the fiscal year 1998 appropriation, up to $2,000,000 is 
        for the following grants: 
           (1) a grant to the Minnesota licensed family child care 
        association for statewide implementation of the family child 
        care mentorship model developed by the association; 
           (2) a grant to the Minnesota child care apprentice/mentor 
        program to modify the apprentice/mentor program for statewide 
        implementation through the child care careers program of the 
        community/technical college system; 
           (3) a grant to expand project impact, which prepares child 
        care providers and staff who are members of a community of 
        color, as that term is defined in Minnesota Statutes, section 
        257.076, subdivision 3, to meet or exceed the education and 
        experience requirements of assistant teachers, teachers, and 
        family day care providers in licensed child care programs; 
           (4) expansion of the Minnesota child care apprentice/mentor 
        program, which prepares child care center staff to meet or 
        exceed the education and experience requirements of teachers in 
        licensed child care centers; 
           (5) grants to the regional child care resource and referral 
        programs under Minnesota Statutes, section 119B.18, and 
        education and training loans made by the regional child care 
        resource and referral programs under the loan program 
        established in section 119B.18.  No more than 2.5 percent of 
        this appropriation may be used for administration of the loan 
        program; and 
           (6) a grant to a nonprofit corporation under Minnesota 
        Statutes, section 119B.25.  Up to five percent of the grant may 
        be used by the department and the nonprofit corporation to 
        administer the loan program including costs associated with 
        setting up an information system to administer child care and 
        early childhood education facility loans. 
           Sec. 51.  [EFFECTIVE DATE.] 
           Unless provided otherwise, each section of this act takes 
        effect at the time that the section of law enacted in 1997 that 
        it amends or cites takes effect.  Section 23 (Correction 68) is 
        effective July 1, 1997. 
           Presented to the governor June 27, 1997 
           Signed by the governor June 30, 1997, 9:48 a.m.