Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

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