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1985 Minnesota Session Laws

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                         Laws of Minnesota 1985 

                         CHAPTER 13-H.F.No. 16 
           An act relating to the organization and operation of 
          state government; appropriating money for the general 
          legislative, judicial, and administrative expenses of 
          state government with certain conditions; providing 
          for the transfer of certain money in the state 
          treasury; authorizing land acquisition; fixing and 
          limiting fees; creating, modifying, transferring, and 
          abolishing agencies and functions; amending Minnesota 
          Statutes 1984, sections 2.722, subdivision 1, and by 
          adding a subdivision; 3.099, subdivision 1; 3.21; 
          3.302, subdivision 3; 3.303, by adding a subdivision; 
          3.351, subdivision 3; 3.736, subdivision 3; 3.85, 
          subdivision 11; 3.9223, subdivision 1; 3C.12, 
          subdivision 7; 11A.07, by adding a subdivision; 
          11A.20, subdivision 1; 13.68, subdivision 1; 14.07, 
          subdivisions 1 and 2; 14.08; 14.26; 14.32; 14.40; 
          14.47, subdivision 8; 14.48; 14.51; 14.55; 15.0597, 
          subdivision 1; 15.50, subdivision 3; 15A.081, 
          subdivisions 1 and 7; 15A.082, subdivisions 2 and 3; 
          16A.055, subdivision 1; 16A.123, subdivision 3; 
          16A.127, subdivisions 1, 3, and 5, and by adding a 
          subdivision; 16A.128; 16A.1281; 16A.275; 16A.40; 
          16A.42, subdivision 2; 16A.45, subdivision 2; 16A.47; 
          16A.58; 16A.641, subdivision 10, and by adding a 
          subdivision; 16A.672, subdivisions 1, 2, and 3; 
          16B.08, subdivision 7; 16B.09, by adding a subdivision;
          16B.21, subdivision 1; 16B.22, as amended; 16B.24, 
          subdivision 5; 16B.29; 16B.36, subdivision 1; 16B.42, 
          subdivision 4; 16B.48, subdivision 2; 16B.54, 
          subdivision 2; 16B.70; 40A.01, subdivision 1; 40A.02, 
          subdivisions 3, 11, and 15; 40A.03, subdivision 2; 
          40A.04; 40A.05, subdivisions 1 and 2; 40A.06; 40A.07, 
          subdivision 2, and by adding a subdivision; 40A.13, 
          subdivision 1; 40A.15, subdivision 4; 41A.01; 41A.02, 
          subdivisions 5, 7, 8, and 11, and by adding a 
          subdivision; 41A.03, subdivisions 1 and 3, and by 
          adding a subdivision; 41A.04, subdivisions 1, 3, and 4;
          41A.05, subdivisions 1, 2, and 3, and by adding a 
          subdivision; 41A.06, subdivisions 1 and 5; 43A.04, 
          subdivision 3; 43A.07, subdivision 2; 43A.08, 
          subdivision 1; 43A.10, subdivision 8; 43A.15, by 
          adding a subdivision; 43A.18, subdivision 5; 43A.19, 
          subdivision 1; 43A.30, subdivision 4, and by adding a 
          subdivision; 46.07, subdivision 2, and by adding a 
          subdivision; 47.015, subdivision 1; 47.0151, 
          subdivision 3; 47.0152; 48.13; 49.05, by adding 
          subdivisions; 52.02, subdivision 3; 52.24, 
          subdivisions 1 and 2; 53.04, by adding a subdivision; 
          53.10; 55.095; 65B.49, subdivision 4, as amended; 
          69.031, subdivision 1; 84.86, subdivision 1; 84B.03, 
          subdivision 4; 85.05, subdivisions 1 and 2; 85.22, 
          subdivision 2a; 85.43; 85A.01, subdivisions 1 and 2; 
          85A.02, subdivisions 3, 4, 5, 7, 12, and 16, and by 
          adding subdivisions; 85A.04, subdivision 1; 97.4841, 
          subdivision 3; 97.4842, subdivision 2; 98.45, by 
          adding a subdivision; 98.46, subdivisions 2, 14, and 
          15; 100.271, subdivision 2; 105.42, by adding a 
          subdivision; 115.03, by adding a subdivision; 115A.904;
          115A.908, subdivision 2; 115A.914, subdivision 1; 
          116.07, subdivision 4d; 116.12, subdivision 1; 
          116C.69, subdivision 3; 116C.71, by adding a 
          subdivision; 116C.723; 116C.724; 116J.36, subdivision 
          6, as amended; 116J.76; 116M.03, subdivision 17, and 
          by adding a subdivision; 116M.04, subdivisions 8a and 
          9; 116M.05, subdivision 8; 116M.06, subdivisions 2 and 
          5; 116M.07, subdivisions 2, 4, 8, 9, 11, and 13; 
          116M.08, subdivisions 11, 12, 14, and 15; 116M.10, 
          subdivision 8; 116M.11; 116M.12, subdivisions 3 and 4; 
          176.102, by adding a subdivision; 177.23, subdivisions 
          4 and 7; 177.24, subdivisions 3, 4, and 5; 177.27; 
          177.28, subdivision 4; 177.32, subdivision 1; 180.03, 
          subdivisions 2, 3, and 4; 180.10; 181.79, subdivision 
          1; 181A.04, subdivision 3; 181A.12, subdivision 1; 
          183.545, by adding a subdivision; 192.51, subdivision 
          2; 196.051, by adding a subdivision; 268.05, 
          subdivision 2; 268.38, subdivisions 1, 2, 6, 7, and 8; 
          270.75, by adding a subdivision; 270A.07, subdivision 
          1; 290.50, subdivision 6; 296.421, subdivision 4, and 
          by adding a subdivision; 297.13, subdivision 1; 
          298.2211, by adding a subdivision; 326.52; 331A.02, 
          subdivision 1; 334.021; 352.01, subdivision 2B; 
          361.03, subdivision 5; 361.27; 363.01, subdivision 24, 
          and by adding subdivisions; 363.05, subdivision 2; 
          363.06, subdivision 8; 363.116; 403.11, subdivision 1; 
          422A.101, subdivision 3, and by adding a subdivision; 
          462A.03, subdivision 14; 462A.05, subdivisions 11, 12, 
          and 15a, and by adding subdivisions; 462A.07, 
          subdivisions 14 and 15; 462A.08, subdivision 3; 
          462A.20, subdivision 3; 462A.21, subdivision 6, and by 
          adding a subdivision; 462C.09, by adding a subdivision;
          466.03, by adding a subdivision; 471.345, by adding a 
          subdivision; 472.03, subdivision 9; 472.11, 
          subdivisions 3 and 9; 472.125; 472.13; 473.123, 
          subdivision 5; 473.141, subdivision 7; 473.605, 
          subdivision 2; 473.606, subdivision 1; 473.714; 
          477A.014, by adding a subdivision; 486.05, subdivision 
          1, as amended; 487.01, subdivision 5; 494.01, by 
          adding a subdivision; 609.101; 611.216, subdivision 1, 
          and by adding a subdivision; and 626.861, by adding a 
          subdivision; Laws 1984, chapter 502, article 5, 
          section 19, subdivision 1; Laws 1985, chapter 4, 
          section 6, subdivision 3, as amended; chapter 221, 
          sections 1 and 12; and chapter 258, section 1, 
          subdivision 1; proposing coding for new law in 
          Minnesota Statutes, chapters 3; 3C; 5; 8; 16A; 40A; 
          41A; 43A; 47; 84; 85; 85A; 88; 97; 116; 116C; 116J; 
          116M; 139; 179; 181; 198; 270; 363; 473; and 480; 
          repealing Minnesota Statutes, sections 7.01; 7.013; 
          7.02; 7.03; 7.04; 7.05; 7.13; 7.14; 7.15; 7.16; 7.17; 
          7.18; 10.18; 10.19; 10.20; 10.21; 10.22; 10.23; 
          16A.42, subdivision 3; 40.19, subdivisions 3, 4, 10, 
          12, 14, and 15; 40A.13, subdivisions 2, 3, 4, and 5; 
          43A.19, subdivision 2; 46.15; 47.20, subdivisions 11 
          and 12; 48.19; 48.57; 48.58; 48.87; 69.031, 
          subdivision 2; 84.088; 85A.01, subdivision 1a; 85A.03; 
          85A.04, subdivision 3; 124.471; 296.10; 349.212, 
          subdivision 3, as amended; 360.301; 360.302; 360.304; 
          360.306; 360.388; and 360.389; and Laws 1982, chapter 
          489, section 11; Laws 1984, chapter 502, article 10, 
          section 12; and chapter 654, article 2, section 151. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [STATE DEPARTMENTS; APPROPRIATIONS.] 
    The sums shown in the columns marked "APPROPRIATIONS" are 
appropriated from the general fund, or another fund named, to 
the agencies and for the purposes specified in this act, to be 
available for the fiscal years indicated for each purpose.  The 
figures "1985," "1986," and "1987," where used in this act, mean 
that the appropriation or appropriations listed under them are 
available for the year ending June 30, 1985, June 30, 1986, or 
June 30, 1987, respectively.  
                      SUMMARY BY FUND 
                 1985        1986         1987         TOTAL   
General       $5,485,300 $461,690,300 $483,625,000  $950,800,600 
Special                    38,055,500   40,797,600    78,853,100 
State Airports                 54,600      104,500       159,100
Game and Fish              33,928,700   34,667,100    68,595,800
Trunk Highway    983,000   10,008,100   15,501,500    26,492,600
Highway User                1,688,800    1,965,000     3,653,800
Workers' Comp.              8,504,800    8,538,400    17,043,200
Environmental               3,058,600    3,320,200     6,378,800
Metro Landfill 
  Abatement                   834,000      834,000     1,668,000
Metro Landfill 
  Contingency               1,312,300    1,317,500     2,629,800
Minnesota Resources         8,573,500    7,408,200    15,981,700
Motor Vehicle 
  Transfer                  2,288,700    2,712,700     5,001,400
Water Pollution 
  Control                     430,400      352,300       782,700
Transfers to Other
  Direct     (4,747,300)   (3,585,900)  (3,459,800)  (11,793,000)
TOTAL        $1,721,000  $566,842,400 $597,684,200 $1,166,247,600
                                           APPROPRIATIONS
                                       Available for the Year
                                           Ending June 30 
                                          1986         1987
     Sec. 2.  LEGISLATURE 
     Subdivision 1.  Total for         $32,380,900 $33,221,200
this section
              Summary by Fund 
General         $32,361,400  $33,201,700 
Trunk Highway       $19,500      $19,500
     Subd. 2.  Senate                   10,124,000  11,276,000
     Subd. 3.  House of Representatives 15,946,300  15,194,400
 $1,236,300 is to reimburse the house of 
representatives for expenses related to 
the rehabilitation and renovation of 
the state office building. 
     Subd. 4.  Legislative Coordinating
Commission                               3,448,500   3,871,200
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a)  Legislative Reference Library
      1986          1987 
  $  758,900    $  787,000 
(b)  Revisor of Statutes
  $1,208,200    $1,566,100 
(c)  Legislative Commission on the 
Economic Status of Women
  $   110,400   $   114,700
(d)  Legislative Commission on 
Economic Development Strategy 
  $    85,000   $    85,000 
(e)  Legislative Commission on 
Employee Relations  
  $    86,200   $    88,800 
(f)  Legislative Commission on Energy 
  $    25,000   $    25,000 
(g)  Great Lakes Commission  
  $    34,500   $    38,600 
 The appropriation for the second year 
is available for expenditure only with 
the approval of the governor after 
consultation with the chairmen of the 
senate finance committee and house of 
representatives appropriations 
committee and after completion of a 
study, to be carried out jointly by the 
Great Lakes Commission and the Council 
of Great Lakes Governors, concerning 
the proper roles of these two agencies. 
(h)  Legislative Commission on Pensions 
and Retirement  
  $  592,500    $  612,500 
(i)  Legislative Commission on 
Public Education  
  $   50,000    $   50,000 
(j)  Legislative Commission to Review 
Administrative Rules  
  $   98,500    $  101,300 
(k)  Legislative Commission on Waste  
Management
  $  104,800    $   109,800
(l)  Mississippi River Parkway Commission 
  $   19,500    $   19,500 
 This appropriation is from the trunk 
highway fund. 
(m)  Legislative Coordinating 
Commission - General Support
  $ 245,000     $ 242,900 
 $50,000 the first year and $50,000 the 
second year is reserved for 
unanticipated costs of agencies in this 
subdivision and subdivision 5.  The 
legislative coordinating commission may 
transfer necessary amounts from this 
appropriation to the appropriations of 
the agencies concerned, and the amounts 
transferred are appropriated to those 
agencies to be spent by them.  If the 
appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
 $62,400 the first year and $64,900 the 
second year is for the state 
contribution to the national conference 
of state legislatures. 
(n) Visitor Services 
  $   30,000    $   30,000
     Subd. 5.  Legislative Audit 
Commission                               2,862,100    2,879,600 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a)  Legislative Audit Commission
  $   12,200    $   12,600 
(b)  Legislative Auditor
  $2,849,900    $2,867,000 
     Sec. 3.  SUPREME COURT  
     Subdivision 1.  Total 
Appropriation                            7,111,800    7,104,600 
              Summary by Fund  
General            $5,907,700   $5,900,500
Special            $1,204,100   $1,204,100
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Supreme Court Operations 
  $3,597,000    $3,585,700 
 $1,204,100 the first year and 
$1,204,100 the second year is from the 
legal services account in the special 
revenue fund for legal services to 
low-income clients.  Any unencumbered 
balance remaining of the legal services 
appropriation in the first year does 
not cancel but is available for the 
second year of the biennium. 
 During the biennium, all legal services 
surcharges collected under Minnesota 
Statutes, section 480.241 shall be 
spent only upon programs and clients 
stipulated by Minnesota Statutes, 
sections 480.242 and 480.243. 
 The supreme court shall prepare and 
submit to the legislature by September 
1, 1985, a supplement to its report on 
the legal services surcharge required 
by Laws 1982, chapter 489, section 7. 
 $2,100 the first year and $2,200 the 
second year is for a contingent account 
for expenses necessary for the normal 
operation of the court for which no 
other reimbursement is provided. 
     Subd. 3.  State Court Administrator 
  $2,892,700    $2,892,000 
 Of this amount $273,000 the first year 
and $290,000 the second year is 
available for the costs associated with 
the installation and operation of 
automated trial court information 
systems within a second judicial 
district. 
 The proceeds, fees, and royalties from 
licensing or sale of the trial court 
information system application software 
are appropriated to the supreme court 
for purposes of the trial court 
information system during the biennium 
ending June 30, 1987.  The supreme 
court shall report to the chairmen of 
the senate finance committee and the 
house appropriations committee on the 
amounts received and the uses to which 
they are put. 
 $196,000 the first year and $183,600 
the second year is for allocated costs 
of the revisor of statutes. 
     Subd. 4.  State Law Library
  $  622,100    $  626,900 
     Sec. 4.  COURT OF APPEALS           2,963,300    2,948,600 
     Sec. 5.  TRIAL COURTS 
     Subdivision 1.  Total 
Appropriation                           15,996,700   15,990,400 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  District and County 
Court Judges 
  $15,387,500   $15,427,700
     Subd. 3.  District Judges 
Executive Secretary 
  $    13,500   $    13,800 
     Subd. 4.  District Court 
Administrators 
  $   595,700   $   548,900 
 During the biennium, current state 
employees in judicial districts five 
and eight who transfer to county 
employment shall have all accumulated 
vacation and sick leave and all pension 
rights transferred with them to their 
county employment. 
     Sec. 6.  BOARD ON JUDICIAL
STANDARDS                                  149,700      150,800 
    Approved Complement - 2 
     Sec. 7.  BOARD OF PUBLIC DEFENSE      529,600      557,300 
     Approved Complement - 1
     Sec. 8.  PUBLIC DEFENDER             1,280,800    1,334,200 
    Approved Complement - 28 
 During the biennium, legal assistance 
to Minnesota prisoners shall serve the 
civil legal needs of persons confined 
to state institutions. 
 None of this appropriation shall be 
used to pay for lawsuits against public 
agencies or public officials to change 
social or public policy.  
     Sec. 9.  GOVERNOR  
     Subdivision 1.  Total 
Appropriation                            2,088,900    2,102,200 
 The amounts that may be spent for each 
activity are as follows: 
(a)  Committee on Appointments 
  $   92,600    $   93,200 
(b)  Governor's Residence 
  $  258,700    $  261,600 
 $10,000 each year is to provide 
part-time staff assistance to the 
governor's residence council 
established in Minnesota Statutes, 
section 16B.27. 
(c)  Executive Operations in 
Washington, D.C. 
  $  160,300    $  163,100 
(d)  General Support 
  $   14,700    $   14,500 
 $14,700 the first year and $14,500 the 
second year is for personal expenses 
connected with the office of the 
governor. 
For 1985 - $88,000 
 $88,000 for fiscal year 1985 is for 
costs of hearing a complaint filed 
against the Scott county attorney, to 
be available until June 30, 1986. 
(e)  Interstate Representation 
and Cooperation 
  $   66,500    $   72,500 
 This appropriation is for membership 
dues of the national governors 
association. 
     Sec. 10.  LIEUTENANT GOVERNOR       252,300     253,200 
     Sec. 11.  SECRETARY OF STATE
  Subdivision 1.  Total Appropriation  1,570,500   1,686,300
    Approved Complement - 42 
 Four data entry positions are in the 
unclassified service to convert 
corporate and Uniform Commercial Code 
records from a paper format to a 
computerized format. 
 The appropriations in this section are 
from the special revenue fund. 
 The amounts that may be spent from this 
appropriation for each activity are 
specified in the following subdivisions.
     Subd. 2.  Elections and 
Publications 
  $  263,800    $  449,000 
     Subd. 3.  Uniform Commercial 
Code 
  $  130,700    $  128,300 
     Subd. 4.  Business Services 
  $  534,900    $  526,400 
     Subd. 5.  Administration 
  $  315,600    $  314,400 
     Subd. 6.  Fiscal Operations 
  $  109,500    $  109,000 
     Subd. 7.  Data Services 
  $  216,000    $  159,200 
     Sec. 12.  STATE AUDITOR               434,800      437,200 
    Approved Complement - 121.5 
    General - 7.5 
    Revolving - 114 
 $74,700 the first year and $77,300 the 
second year is for an account the 
auditor may bill for costs associated 
with conducting single audits of 
federal funds.  During the biennium, 
this account may be used only when no 
other billing mechanism is feasible. 
 During the biennium ending June 30, 
1987, the commissioner of finance shall 
not approve any rate increase for the 
state auditor beyond those in effect on 
January 1, 1985, except for adjustments 
necessitated by salary increases, 
indirect cost assessments, and other 
verifiably escalating expenses 
associated with performing their 
reimbursable audits. 
 $176,000 the first year and $178,000 
the second year must be subtracted from 
the amount that would otherwise be 
payable as local government aid under 
Minnesota Statutes, chapter 477A, in 
order to fund the government 
information division. 
     Sec. 13.  STATE TREASURER             162,600      163,700 
    Approved Complement - 4 
 Seven positions in the office of the 
state treasurer are abolished, 
effective June 30, 1985.  
 The commissioner of employee relations 
shall assist in the placement of the 
incumbents of abolished positions in 
suitable classifications in state 
employment where vacancies exist during 
the year ending June 30, 1986. 
 Except as provided in the Minnesota 
Constitution, article V; article XI, 
sections 7 and 8; and Minnesota 
Statutes, sections 9.011; 11A.03; and 
16A.27, subdivision 2, the 
responsibilities of the state treasurer 
are transferred to the commissioner of 
finance under Minnesota Statutes, 
section 15.039. 
 The purpose of this reorganization is 
to increase the efficiency of state 
government while maintaining the system 
of checks and balances provided for in 
the Minnesota Constitution.  This 
reorganization and transfer effects 
increased efficiency through 
elimination of duplicative functions 
and integration of similar financial 
duties while maintaining the 
constitutional responsibilities of the 
treasurer and the integrity of the 
accounting system.  Internal control is 
maintained by the separation within the 
department of finance of the handling 
of cash and other assets from the 
accounting records, the daily review by 
the treasurer of reconciliation reports 
from the commissioner of finance of 
state balances on deposit in financial 
institutions, and audits by the 
legislative auditor of both the records 
kept by the treasurer and the records 
kept by the commissioner of finance. 
     Sec. 14.  ATTORNEY GENERAL          
     Subdivision 1.  Total 
Appropriation                           16,324,600   16,821,300 
    Approved Complement - 338 
    General - 327 
    Federal - 11 
              Summary by Fund 
General         $15,243,000  $15,663,900 
Game and Fish      $200,000     $225,000
Trunk Highway      $600,000     $625,000
For 1985 - $333,000
Highway User       $125,000     $150,000
Environmental      $156,600     $157,400
 The amounts that may be spent from this 
appropriation for each activity are 
specified in the following subdivisions.
     Subd. 2.  Public Administration 
  $1,280,800    $1,314,800 
     Subd. 3.  Public Resources 
  $3,678,300    $3,774,800 
     Subd. 4.  Public Assistance 
  $2,035,200    $2,075,200 
     Subd. 5.  Public Protection 
  $4,353,000    $4,521,700 
     Subd. 6.  Legal Policy and 
Administration 
  $3,895,700    $3,977,400 
 $50,000 the first year and $50,000 the 
second year is for a special account 
for unanticipated legal expenses.  If 
the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it.  
     Subd. 7.  Legal Services to  
Dedicated Funds 
   $1,081,600   $1,157,400 
 (a) The following amounts are 
appropriated to the agencies indicated 
to pay for legal services billed to 
them by the attorney general.  Amounts 
not needed for legal services may be 
transferred and added to other 
appropriations to the agencies. 
Natural Resources     
  Game and Fish   $  200,000   $  225,000 
Public Safety          
  Trunk Highway   $  600,000      625,000  
  Highway User    $  125,000   $  150,000 
Pollution Control   
  Environmental   $  156,600   $  157,400 
 (b) The sum of $333,000 is appropriated 
from the trunk highway fund for 
transfer by the commissioner of finance 
to the general fund on June 30, 1985, 
in order to reimburse the general fund 
for expenses not related to the fund.  
These represent amounts appropriated 
out of the general fund for legal 
services to trunk highway fund purposes 
in fiscal year 1983 and fiscal year 
1984. 
     Sec. 15.  INVESTMENT BOARD          1,484,100    1,491,100 
    Approved Complement - 25 
 Any unencumbered balance remaining in 
the first year does not cancel but is 
available for the second year of the 
biennium. 
     Sec. 16.  ADMINISTRATIVE HEARINGS   1,781,600    1,802,400 
    Approved Complement - 54.5 
    Revolving - 18.5 
    Workers' Compensation - 36 
 This appropriation is from the workers' 
compensation special compensation fund 
for considering workers' compensation 
claims. 
     Sec. 17.  ADMINISTRATION  
     Subdivision 1.  Total 
Appropriation                           24,290,300   18,883,200 
                           1986    1987 
     Approved Complement - 819.1   826.1 
     General -             185.6   184.6 
     Special -              28.6    30.6 
     Dedicated -           603.9   609.9 
     Gift -                    1       1 
              Summary by Fund 
General            $22,610,500  $16,185,600 
Special            $   979,800  $ 2,697,600 
Trunk Highway      $   700,000  
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Agency Services
  $4,260,900    $3,620,400 
 $250,000 the first year is for transfer 
to the central motor pool fund as 
contributed capital. 
 $1,412,000 the first year and 
$1,002,800 the second year is for 
allocated costs of the revisor of 
statutes. 
 During the biennium ending June 30, 
1987, the general fund complement of 40 
in central purchasing must not be 
reduced or transferred to any other 
activity. 
     Subd. 3.  Information Services 
  $9,426,200    $5,940,900 
              Summary by Fund 
General            $8,726,200   $4,135,100 
Special                         $1,805,800 
Trunk highway      $  700,000              
 $250,000 is for transfer to the 
telecommunications fund as contributed 
capital. 
 $1,200,000 the first year is for 
transfer to the computer services fund 
as contributed capital, $500,000 from 
the general fund and $700,000 from the 
trunk highway fund. 
 $25,000 the first year and $25,000 the 
second year is for the cable 
communications activity.  The 
responsibilities of the cable 
communications board are transferred to 
the commissioner of commerce on June 
30, 1985, as provided in Minnesota 
Statutes, section 15.039, except that 
the positions for board members and 
staff are abolished.  No positions are 
transferred. 
 $2,748,800 the first year and 
$1,805,700 the second year is from the 
general fund and $1,805,800 the second 
year is from the special revenue fund 
for recurring costs of 911 emergency 
telephone service.  Two general fund 
positions cancel on January 1, 1987. 
     Subd. 4.  General Services 
  $6,503,900    $5,303,600 
              Summary by Fund 
General            $5,524,100   $4,411,800 
Special            $  979,800   $  891,800 
 The department of administration shall 
develop a plan to include cost benefit 
and effectiveness analysis of 
co-locating the central and regional 
offices of the Pollution Control Agency 
and the Department of Natural 
Resources.  The commissioner shall 
consult with the Pollution Control 
Agency and the Department of Natural 
Resources in preparing the plan.  The 
plan shall include specific provisions 
for co-locating the Rochester offices 
of these two agencies. The commissioner 
shall provide the chairs of the senate 
finance committee and the house of 
representatives appropriations 
committee with a preliminary report on 
findings and conclusions by January 15, 
1986. 
 During the biennium the master lease, 
as defined by the department of 
finance, may only be used to finance 
large equipment with a capital value of 
more than $100,000 and a useful life of 
more than ten years, and for equipment 
already purchased under an existing 
lease/purchase agreement.  The 
commissioner of finance must consult 
with the chairs of the house 
appropriations and senate finance 
committees before entering into any 
lease/purchases of equipment by any 
state agency.  This requirement does 
not apply to purchases by the 
commissioner of administration made 
with money from an internal services 
fund.  
 $1,250,000 the first year is for 
transfer to the general services fund 
as contributed capital. 
 $2,914,300 the first year and 
$3,047,500 the second year is for 
office space costs of the legislature 
and veterans organizations. 
 The approved complement is increased by 
one unclassified position from the 
state building fund for each 
$20,000,000 of building fund 
appropriations made by the 1985-1986 
legislature. 
 The cost of energy audits performed on 
buildings housing activities that are 
paid for from a dedicated fund must be 
reimbursed to the general fund from the 
dedicated fund, and the amounts 
necessary to make the reimbursements 
are appropriated from the dedicated 
fund. 
 $979,800 the first year and $891,800 
the second year is from the special 
revenue fund for the building code 
division. 
 The commissioner of administration 
shall report to the house and senate 
committees on governmental operations 
by September 1, 1985, on the effect of 
Minnesota Rules, chapter 1340, in 
insuring that buildings and related 
facilities adequately provide for the 
handicapped.  The report must include 
information on the extent that state 
and local governments enforce, and 
public and private owners of new or 
recently remodeled facilities comply 
with, Minnesota Rules, chapter 1340. 
     Subd. 5.  Administrative Services
  $3,171,900    $3,041,800 
 The commissioner of administration 
shall develop a plan for establishing a 
citizen suggestion system to be 
administered in conjunction with the 
suggestion program for state employees 
described in Minnesota Statutes, 
section 16B.39.  The plan must explore 
similar programs in other states, a 
fund for remuneration for cost-saving 
ideas and oversight provisions for the 
fund, a 24-hour statewide toll-free 
telephone line to receive citizen 
suggestions, proposed legislation to 
implement the plan, and estimates of 
the costs of implementing the citizen 
suggestion system.  The plan must be 
submitted to the legislature by January 
1, 1986. 
 $2,000 the first year and $2,000 the 
second year is for the state employees' 
band. 
 $220,300 the first year and $229,300 
the second year is for block grants to 
public television stations. 
 $388,400 the first year and $404,100 
the second year is for matching grants 
to public television stations. 
 $1,092,000 the first year and 
$1,136,000 the second year is for 
public television equipment needs. 
 $202,900 the first year and $211,100 
the second year is for grants to public 
educational radio stations under 
Minnesota Statutes, section 139.19. 
 $104,000 the first year and $108,200 
the second year is for public 
educational radio equipment needs. 
 $15,000 the first year is to conduct a 
survey to determine the number and 
listening pattern of listeners to each 
public educational radio station that 
receives state money under this 
section.  The results of the survey 
must be submitted to the senate finance 
committee and house of representatives 
appropriations committee. 
 If an appropriation for either year for 
grants to public television or radio 
stations is not sufficient, the 
appropriation for the other year is 
available for it. 
 $200,000 the first year is for a grant 
to the World Theater Corporation of 
Minnesota, to be paid only if the 
following criteria are met:  the World 
Theater Corporation must document to 
the commissioner it is a nonprofit 
corporation; before matching state 
money may be disbursed, $200,000 of 
verified private nontax generated 
contributions must have been received 
or pledged and an additional match of 
$1 of verified private nontax-generated 
contributions must be received or 
pledged for each $1 of state money that 
is disbursed, so that the total match 
is 2 for 1.  The World Theater 
Corporation of Minnesota may use this 
grant money for the costs of completing 
the planned renovation of the World 
Theater in St. Paul.  The World Theater 
Corporation must document that this 
grant money was used on renovation 
expenses and not operating expenses. 
     Subd. 6.  Commissioner's Office 
  $  927,400    $  976,500 
     Sec. 18.  CAPITOL AREA 
ARCHITECTURAL AND PLANNING BOARD            132,100     133,100 
                           1986    1987
     Approved Complement -  3       3 
 $24,000 and one position in 1987 is 
available only with the approval of the 
governor upon recommendation of the 
chairs of the senate finance committee 
and house appropriations committee. 
     Sec. 19.  FINANCE   
     Subdivision 1.  Total 
Appropriation                            7,246,200    7,111,400 
    Approved Complement - 131 
 The approved complement includes nine 
positions transferred from the office 
of the state treasurer to the 
department of finance under Minnesota 
Statutes, section 15.039. 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Accounting Operations 
  $4,334,200    $4,122,200 
     Subd. 3.  Budget Analysis and Operations 
  $1,382,400    $1,441,600 
     Subd. 4.  Fiscal Management 
and Administration 
  $1,529,600    $1,547,600 
     Subd. 5.  Tax Study Commission 
 Notwithstanding any law or compensation 
plan to the contrary, $1,200 is 
appropriated from tax study commission 
cancellations for previously approved 
relocation expenses. 
     Subd. 6.  Exchange of Certain 
Outstanding Bonds
 The commissioner of finance may 
purchase from their holders $6,300,000 
principal amount of general obligation 
bonds of the state dated August 1, 
1981, maturing on August 1, 2000, and 
August 1, 2001.  The purchase may be 
made with money on hand in the state 
bond fund, or by the delivery to the 
holders of outstanding state general 
obligation bonds of like principal 
amount, maturity and interest rate, and 
cash in an amount not exceeding two 
percent of the principal amount of the 
bonds.  The commissioner may issue 
state general obligation bonds for this 
purpose, and $126,000 of the money 
appropriated for transfer from the 
state general fund to the state bond 
fund by Laws 1983, chapter 301, section 
47, is appropriated for this purpose.  
Except as specified in this 
subdivision, bonds issued under this 
subdivision must contain the terms 
provided by the commissioner's order 
authorizing their issuance.  
Outstanding bonds purchased under this 
section must be canceled, and money 
previously appropriated and required to 
be transferred to the state bond fund 
for payment of the outstanding bonds 
must, after the date of purchase, be 
used to pay the principal of and 
interest on bonds issued under this 
subdivision and are appropriated to the 
state bond fund for this purpose. 
     Subd. 7.  Metropolitan Council 
 The commissioner of finance shall 
review the budget and tax levy of the 
metropolitan council and each 
metropolitan commission or board.  The 
commissioner of finance, in cooperation 
with the commissioner of employee 
relations, shall review the personnel 
practices and the number of managerial 
employees of the council and each 
metropolitan commission or board and 
the reasonableness of their 
compensation packages.  The 
commissioner of finance shall report 
the results of these reviews to the 
legislature by January 1, 1986, and 
January 1, 1987. 
     Subd. 8.  State-Local Relations 
 The governor's advisory council on 
state-local and inter-agency relations, 
working with the commissioner of 
finance, shall examine the issue of 
apportionment of governmental costs 
between the state and local units of 
government.  The commissioner of 
finance shall, as part of this study, 
review and recommend ways state 
agencies should reflect the appropriate 
costs to the federal government, local 
governments, or other revenue producers 
or service users.  The commissioner of 
finance shall also review and recommend 
ways state agencies should reflect the 
appropriate costs among the agencies.  
These reports are intended to enhance 
government accountability and must be 
submitted to the governor and the 
chairmen of the senate finance and 
house appropriations committees by July 
1, 1986. 
     Sec. 20.  EMPLOYEE RELATIONS    
     Subdivision 1.  Total 
Appropriation                            4,000,500    3,979,100 
                           1986   1987 
     Approved Complement -  105    114 
     General -               99     99 
     Special -                6      6 
     Revolving -              0      9
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Administration 
  $1,171,900    $1,171,900 
     Subd. 3.  Equal Opportunity 
  $  155,800    $  156,200 
     Subd. 4.  Labor Relations 
  $  427,500    $  428,700 
     Subd. 5.  Personnel 
  $2,245,300    $2,222,300 
 The management analysis division of the 
department of administration, in 
consultation with the commissioner of 
employee relations and heads of 
affected agencies, shall report to the 
legislature by January 15, 1986, on 
methods for speeding up the process of 
examining, certifying, and hiring 
people to fill vacancies in state 
employment and methods for dismissing 
state employees who are not performing 
up to standards set by their agencies, 
within the framework of collective 
bargaining agreements.  
     Sec. 21.  REVENUE    
     Subdivision 1.  Total 
Appropriation                           39,336,500   39,921,000 
                            1986     1987
     Approved Complement -  1001.2   1005.2
     General -               910.2    914.2
     Highway User -           39       39 
     Special Revenue          52       52   
 The complement number includes ten 
unfunded positions. 
              Summary by Fund 
General            $36,180,200  $36,731,500
Special            $ 1,849,900  $ 1,869,000
Highway User       $ 1,306,400  $ 1,320,500
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Revenue Management 
  $15,140,700   $15,592,300
 $1,400,000 the first year and 
$1,784,000 the second year is for 
actual detailed systems design and 
programming of automated tax systems 
and functions.  None of the 
appropriation for the second year may 
be spent until the commissioner has 
submitted a report to the chairs of the 
committee on finance of the senate and 
the committee on appropriations of the 
house of representatives detailing the 
progress made and the money spent.  
 The commissioner shall report to the 
chair of the senate finance committee 
and the chair of the house of 
representatives appropriations 
committee by January 15, 1986 on 
alternative methods for reducing the 
costs incurred in paying unemployment 
compensation to seasonal employees of 
the department.  
 On July 1, 1985, the commissioner of 
revenue shall submit to the computer 
development steering committee, 
composed of the commissioners of 
revenue, finance, and administration, 
an information systems strategic plan 
that details the systems, projects, and 
developments to be implemented in the 
next six years.  The plan should 
include a cost benefit analysis that 
shows the potential for department wide 
savings.  
 $850,000 the first year and $1,040,000 
the second year for information systems 
development is available for 
expenditure upon completion of each 
phase of development and upon review 
and approval by the computer 
development steering committee. 
     Subd. 3.  Income, Sales, and Use 
Tax Management
  $19,457,100   $19,562,000 
              Summary by Fund 
General            $17,607,200  $17,693,000
Special            $ 1,849,900  $ 1,869,000
 The first $1,849,900 of corporate 
income tax receipts in the first year 
and the first $1,869,000 of corporate 
income tax receipts in the second year 
must be credited to the special revenue 
fund. 
     Subd. 4.  Property and Special 
Taxes Management
  $ 4,657,800   $ 4,684,100 
              Summary by Fund 
General            $ 3,351,400  $ 3,363,600
Highway User       $ 1,306,400  $ 1,320,500
     Subd. 5.  Assessors Board 
  $   80,900    $   82,600 
 $36,800 the first year and $37,900 the 
second year is for state paid tuition 
for required assessor training. 
     Sec. 22.  TAX COURT                   391,100      379,400 
    Approved Complement - 6 
     Sec. 23.  NATURAL RESOURCES   
     Subdivision 1.  Total 
Appropriation                           96,488,700   94,487,700 
                            1986   1987 
     Approved Complement -  1,601  1,595 
     General -                953    943 
     Special -                 82     89 
     Game and Fish -          519    519 
     Federal -                 47     44 
              Funding Summary 
General             $45,101,400  $42,746,600 
Con. Con.           $   500,000  $   500,000 
Cross Country Ski   $   251,800  $   253,700
Forest Management   $ 5,178,300  $ 4,944,100 
Non-Game Wildlife   $   706,800  $   696,900 
Snowmobile          $ 3,243,600  $ 3,082,700 
State Park M. & O.  $ 3,755,300  $ 3,894,400 
Three Wheeler       $    94,100  $    95,500 
Water Recreation    $ 5,099,800  $ 5,645,200 
Wildlife Acquis.    $ 1,145,600  $ 1,144,700 
Game and Fish       $31,412,000  $31,483,900 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Administrative Management 
Services
  $6,051,100    $5,574,800 
              Funding Summary 
General            $3,231,500   $2,418,700 
Snowmobile         $  260,800   $  272,700 
Water Recreation   $  205,000   $  521,200 
Game and Fish      $2,353,800   $2,362,200 
 $325,000 the first year is to pay 
severance costs and unemployment 
compensation.  The commissioner of 
natural resources shall report to the 
chairmen of the senate finance 
committee and house appropriations 
committee by September 1, 1986, on the 
amounts spent from this appropriation. 
 The commissioner of natural resources 
shall study the feasibility of 
providing for a multi-year or lifetime 
stamp for cross country skiing upon 
payment of an appropriate fee and in 
lieu of an annual cross country ski 
license.  The commissioner shall report 
to the chairs of the senate finance 
committee and house appropriations 
committee by January 15, 1986 on the 
findings of the study. 
 $190,000 the first year is to pay the 
costs of acquiring the lands in 
Voyageurs National Park described in 
this act, to the same extent that the 
costs are authorized under Minnesota 
Statutes, section 84B.08.  This 
appropriation is available until June 
30, 1987. 
     Subd. 3.  Regional Administration
  $3,938,500    $3,943,700 
              Funding Summary 
General            $3,094,200   $3,099,200 
Game and Fish      $  844,300   $  844,500 
     Subd. 4.  Field Services Support
  $5,728,900    $5,767,900 
              Funding Summary 
General            $4,166,600   $4,205,600 
Game and Fish      $1,562,300   $1,562,300 
     Subd. 5.  Water Resources Management
  $3,715,600    $3,636,000 
              Funding Summary 
General            $3,622,300   $3,567,700 
Water Recreation   $   93,300   $   68,300 
 $500,000 the first year is added to the 
appropriation in Laws 1984, chapter 
597, section 5, subdivision 4, item 
(d), to construct the Winger dam on the 
Sand Hill River, Polk county. 
$25,000 the first year is for the 
aeration and cleanup of Crooked Lake, 
in the city of Coon Rapids.  The money 
is available only if matched by $1 of 
nonstate money for each $1 of state 
money.  Any unencumbered balance 
remaining in the first year does not 
cancel but is available for the second 
year. 
     Subd. 6.  Mineral Resources Management 
  $3,901,800    $3,955,800 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a)  General Operations and Management 
  $2,954,700    $2,996,600 
 $200,000 the first year and $200,000 
the second year is for copper-nickel 
test drilling.  One position for this 
purpose is in the unclassified civil 
service and its continued employment is 
contingent upon the availability of 
money from the appropriation.  When the 
appropriation has been spent, the 
position shall be canceled and the 
approved complement of the agency 
reduced accordingly.  Part-time 
employment of persons is authorized. 
 $160,000 the first year and $160,000 
the second year is for minerals 
research.  Any unencumbered balance 
remaining in the first year does not 
cancel but is available for the second 
year.  
 $550,000 the first year and $550,000 
the second year is for direct reduction 
research, of which $450,000 the first 
year and $450,000 the second year is 
available only as matched by $1 of 
nonstate money for each $1 of state 
money.  Any unencumbered balance 
remaining in the first year does not 
cancel but is available for the second 
year. 
(b)  Mineland Reclamation 
  $  301,400    $  301,500 
The commissioner of natural resources, 
with the assistance of the commissioner 
of the iron range resources and 
rehabilitation board and county mine 
inspectors, shall study the adequacy of 
existing laws relating to the 
protection of the public from hazards 
arising from the existence of 
excavations, open pits, shafts, or 
caves created by mining other than 
mining of sand, crushed rock, or 
gravel, and shall report findings, 
conclusions, and recommendations to the 
1987 session of the legislature.  The 
commissioner shall consult with private 
owners and operators of active and 
inactive mines in the study. 
(c)  Peat Management 
  $  645,700    $  657,700 
 $175,000 the first year and $175,000 
the second year is for peat 
development.  The commissioner may 
match this state money with money from 
non-state sources. Any unencumbered 
balance remaining in the first year 
does not cancel but is available for 
the second year. 
 $170,000 the first year and $175,000 
the second year is for a detailed peat 
survey, environmental monitoring, and 
reclamation field work.  
 Two positions in peat development and 
four positions in peat survey, 
environmental monitoring, and 
reclamation are in the unclassified 
civil service and their continued 
employment is contingent upon the 
availability of money from the 
appropriation.  When the appropriation 
has been spent, their positions shall 
be canceled and the approved complement 
of the agency reduced accordingly.  
Part-time employment of persons is 
authorized. 
 The commissioner shall report to the 
legislature by January 1, 1986, and 
January 1, 1987, on the progress of 
peat development projects funded by 
this appropriation. 
     Subd. 7.  Forest Management
  $19,510,900   $18,332,600 
              Funding Summary 
General            $13,917,600  $12,973,500
Con. Con.          $   500,000  $   500,000
Forest Management  $ 5,093,300  $ 4,859,100
 $750,000 the first year and $750,000 
the second year is for emergency fire 
fighting and is not subject to 
transfer.  If the appropriation for 
either year is insufficient, the 
appropriation for the other year is 
available for it.  No more than 
$400,000 the first year and $410,000 
the second year is available for 
presuppression costs. 
 $1,250,000 the first year and $250,000 
the second year is for contracts with 
counties or groups of counties for 
county forestry assistance programs.  
At least $1,000,000 the first year is 
reserved for St. Louis county.  Any 
amounts in either year that the 
commissioner of natural resources 
determines will not be needed by 
counties other than St. Louis county 
may be spent under the contract with 
St. Louis county. 
 The commissioner shall establish a 
pilot project to develop methods and 
practices to recycle at least 5,000 
acres of aspen stands in the state.  
The commissioner may restrict bidding 
to loggers residing in the highest 
priority area for aspen recycling who 
are financially distressed.  The 
commissioner may establish standards 
and procedures for awarding logging 
contracts under Minnesota Statutes, 
section 86.35, relating to eligibility 
for employment for conservation work 
projects. The commissioner shall report 
to the legislature by July 1, 1986, 
with the results of the pilot project 
and a plan to recycle the overmature 
aspen stands of the state. 
     Subd. 8.  Fish Management
  $11,391,600   $11,432,000
              Funding Summary 
Water Recreation   $   150,000  $   150,000
Game and Fish      $11,241,600  $11,282,000
(a)  General Operations and Management 
  $11,141,600   $11,182,000
 $50,000 is for grants to a private 
nonprofit organization to develop, 
implement, and evaluate innovative 
techniques for the production of game 
fish fingerlings.  No more than five 
percent may be expended for 
administrative purposes.  A nonprofit 
organization funded shall submit a work 
program to the commissioner of natural 
resources for submission to the 
legislative commission on Minnesota 
resources detailing expenditure of the 
grant.  Expenditure of the grant is 
contingent upon review and approval of 
the work program.  The commissioner 
shall report to the legislature by 
February 1, 1986, on the expenditure of 
this appropriation.  
 $150,000 each year is from the water 
recreation account in the special 
revenue fund for lake improvement.  
(b)  Trout and Salmon Management 
  $   250,000   $   250,000
     Subd. 9.  Wildlife Management
  $10,108,000   $10,221,500
              Funding Summary 
General            $  142,200   $  143,100 
Non-Game Wildlife  $  684,300   $  674,400 
Wildlife Acquis.   $1,014,200   $1,013,500 
Game and Fish      $8,267,300   $8,390,500 
 $674,300 in the first year and $685,700 
the second year is appropriated from 
the game and fish fund for payments to 
counties in lieu of taxes on acquired 
wildlife lands and is not subject to 
transfer. 
     Subd. 10.  Ecological Services
  $ 1,022,300   $ 1,027,900
              Funding Summary 
General            $  437,400   $  442,600 
Game and Fish      $  584,900   $  585,300 
 $34,800 in the first year and $35,000 
the second year is for acid rain. 
     Subd. 11.  Parks and Recreation 
Management 
  $11,686,500   $11,716,900 
              Funding Summary 
General            $7,931,200   $7,822,500 
State Park Maintenance 
and Operation      $3,755,300   $3,894,400 
 $20,800 the first year and $21,700 the 
second year is for payments in lieu of 
taxes on lands in voyageurs national 
park and St. Croix wild river state 
park.  If the appropriation for either 
year is insufficient, the appropriation 
for the other year is available for it. 
     Subd. 12.  Enforcement 
  $9,537,800    $8,935,700 
              Funding Summary 
General            $1,438,000   $  923,200 
Snowmobile         $  353,100   $  142,900 
Water Recreation   $1,257,200   $1,485,200 
Game and Fish      $6,489,500   $6,384,400 
 $994,300 the first year and $994,300 
the second year is from the water 
recreation account in the special 
revenue fund for grants to counties for 
boat and water safety.  
 The appropriation from the game and 
fish fund includes $20,000 the first 
year and $20,000 the second year for 
the purpose of controlling smelt 
fishing activities on the north shore, 
including development of parking 
facilities, traffic control, 
coordination of regulatory agencies, 
control of trespass and vandalism, 
control of littering and sanitation, 
and public information and education.  
If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it.  
     Subd. 13.  Planning and Research 
  $1,123,800   $1,091,500 
              Funding Summary 
General            $1,037,100   $1,004,800 
Water Recreation   $   86,700   $   86,700 
 $84,600 the first year and $84,600 the 
second year is for a grant to the 
Mississippi headwaters board for up to 
50 percent of the cost of implementing 
the comprehensive plan for the upper 
Mississippi within areas under its 
jurisdiction.  
 $20,900 the first year and $21,000 the 
second year is for department operating 
and administrative expenses associated 
with the Mississippi headwaters board 
grant and the implementation of the 
plan in areas along the river that are 
not included within the jurisdiction of 
the Mississippi headwaters board. 
 $40,000 the first year is for a 
feasibility study for a region 7E 
historical center, to be available 
until June 30, 1987.  This 
appropriation must be matched dollar 
for dollar with contributions from 
nonstate sources.  The department of 
natural resources, the Minnesota 
historical society, the department of 
energy and economic development, and 
the county historical societies in 
region 7E shall cooperate in the study. 
The study shall address such themes as 
the history of travel, hydroelectric 
power, energy use and conservation, 
sandstone quarries, historic military 
roads, and outdoor preservation and 
survival.  The site may include the 
land on both sides of the Kettle River 
about one mile south of Sandstone and 
the old United States government road.  
The planning team shall report the 
results of the feasibility study to the 
legislature by January 15, 1986. 
     Subd. 14.  Youth Programs 
  $  743,500    $  746,500 
              Funding Summary 
General            $  416,300   $  419,400 
Forest Management  $   85,000   $   85,000 
Non-Game Wildlife  $   22,500   $   22,500 
Snowmobile         $   60,700   $   60,800 
Water Recreation   $   27,600   $   27,600 
Wildlife Acquis.   $  131,400   $  131,200 
 $22,500 the first year and $22,500 the 
second year is from the nongame 
wildlife management account in the 
special revenue fund for the purpose of 
nongame wildlife management.  Any 
unencumbered balance remaining in the 
first year does not cancel but is 
available the second year.  
     Subd. 15.  Trails and Waterways 
  $6,003,700    $6,056,200 
              Funding Summary 
General            $  612,000   $  616,800 
Cross Country Ski  $  251,800   $  253,700 
Snowmobile         $2,569,000   $2,606,300 
Three Wheeler      $   94,100   $   95,500 
Water Recreation   $2,476,800   $2,483,900 
 $1,548,600 the first year and 
$1,548,600 the second year is for 
snowmobile grants-in-aid. 
 The commissioners of natural resources, 
revenue, and transportation shall 
jointly study and determine the amount 
of unrefunded gasoline tax attributable 
to the operation of motor boats on the 
waters of this state.  Their study must 
include, and their determinations must 
be based on, in part, a representative 
sample of motor boat users.  Their 
findings and determinations must be 
reported to the legislature by January 
1, 1987, together with proposed 
amendments to Minnesota Statutes, 
section 296.421 that reflect their 
determinations. 
     Subd. 16.  Special Services 
  $1,749,800    $1,772,200 
               Funding Summary 
General             $  878,300   $  877,200 
Water Recreation    $  803,200   $  822,300 
Game and Fish       $   68,300   $   72,700 
     Subd. 17.  Minnesota Environmental 
Education Board 
  $  274,900    $  276,500 
     Sec. 24.  ZOOLOGICAL BOARD          4,548,600    4,754,000
 This appropriation is for transfer by 
the commissioner of finance to the zoo 
fund.  The approved complement is 160. 
 Notwithstanding Minnesota Statutes, 
section 85A.04, subdivision 4, the zoo 
board may spend money appropriated to 
the board, in addition to receipts from 
operation of the zoo ride, to settle 
its outstanding debt for purchase of 
the zoo ride.  The amount spent must 
not be more than the net fair market 
value to a good faith purchaser of the 
used zoo ride, as determined by the 
commissioner of finance.  The amount 
spent after July 1, 1985, must not be 
more than $750,000, nor more than could 
be repaid, if repayment were required, 
within the useful life of the zoo ride, 
with interest at a rate comparable to 
that paid on state general obligation 
bonds, from net operating receipts of 
the zoo as a whole attributable to the 
zoo ride, all as determined by the 
commissioner of finance.  
Notwithstanding Minnesota Statutes, 
section 3.30, the commissioner of 
finance may transfer money from the 
general contingent account subject only 
to the review and advice of the chairs 
of the house committee on 
appropriations and the senate committee 
on finance to the zoo board if needed 
to pay the amount authorized by this 
paragraph.  The authority granted in 
this paragraph expires January 1, 1986. 
 The zoo board, with the participation 
of the state planning agency and the 
departments of administration, finance, 
and employee relations, shall develop 
recommendations for implementation of 
all structural and operational changes 
called for in this act to present to 
the legislature by February 3, 1986.  
All participants shall review and 
evaluate governance options that would 
best foster an effective public/private 
partnership to oversee zoo operations.  
The recommendations must also include 
an evaluation of the most appropriate 
status for zoo employees under any 
proposed governance structure, and must 
recommend a transition process to 
achieve that status.  The participants 
shall establish an advisory committee 
to help achieve these ends. 
     Sec. 25.  WATER RESOURCES BOARD       124,700      125,200 
    Approved Complement - 3 
     Sec. 26.  POLLUTION CONTROL AGENCY   
     Subdivision 1.  Total 
Appropriation                            14,032,100   14,749,500
                       1986   1987 
 Approved Complement -  461    461 
 General -              158.5  147.5 
 Environmental -         46     46 
 Metro Landfill 
  Contingency -           4      4 
 Motor Vehicle Transfer - 3      3 
 Federal -              207.5  207.5 
 Special -               30     41 
 Water Pollution   
 Control -               12     12 
              Summary by Fund 
General            $5,978,300   $5,566,800 
For 1985 - $2,186,300 
Special            $1,150,800   $1,670,100 
Environmental      $2,902,000   $3,162,800 
Metro Landfill 
 Abatement         $  834,000   $  834,000 
Metro Landfill 
 Contingency       $1,312,300   $1,317,500 
Motor Vehicle 
 Transfer          $1,424,300   $1,846,000 
Water Pollution 
  Control          $  430,400   $  352,300 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Water Pollution Control
  $2,604,100    $2,538,700 
              Summary by Fund 
General            $1,798,700   $1,436,400 
Special            $  375,000   $  750,000 
Water Pollution 
  Control          $  430,400   $  352,300 
 $80,000 the first year is from the 
water pollution control fund for a 
grant to the Moose Lake and Windemere 
area sanitary sewer district to 
discharge the costs of preparations for 
sewer works made useless by changes in 
the conditions for federal funding. 
     Subd. 3.  Air Pollution Control
  $1,212,700    $1,222,400 
              Summary by Fund 
General            $1,087,700   $  952,400 
Special            $  125,000   $  270,000 
     Subd. 4.  Solid Waste and Hazardous 
Waste Pollution Control
     $9,060,400    $9,817,800 
              Summary by Fund 
General            $2,025,300   $2,099,600 
For 1985 - $2,186,300
Special            $  650,800   $  650,100 
Environmental      $2,813,700   $3,070,600 
Metro Landfill 
 Abatement         $  834,000   $  834,000 
Metro Landfill 
 Contingency       $1,312,300   $1,317,500 
Motor Vehicle 
 Transfer          $1,424,300   $1,846,000 
 (a) All money in the environmental 
response, compensation and compliance 
fund not otherwise appropriated, is 
appropriated to the pollution control 
agency for the purposes described in 
the environmental response and 
liability act, Minnesota Statutes, 
section 115B.20, subdivision 2, clauses 
(a), (b), and (c).  
 This appropriation is available until 
June 30, 1987.  
 Expenditure of the appropriation from 
the environmental fund in the second 
year of the biennium is contingent upon 
receipt of an agency report submitted 
to the chairs of the senate finance 
committee and house appropriations 
committee detailing agency expenditures 
in fiscal year 1986, as required by 
Minnesota Statutes, section 115B.20, 
subdivision 6. 
 (b) Until June 30, 1987, the balance in 
the metropolitan landfill abatement 
fund after the appropriations in Laws 
1984, chapter 644, section 81, 
subdivisions 2 and 3; and Minnesota 
Statutes, sections 473.843, subdivision 
7; and 473.844, subdivision 5, is 
appropriated to the pollution control 
agency for payment to the metropolitan 
council and may be used by the council 
only for the following purposes: 
 $140,000 the first year and $140,000 
the second year is for grants and loans 
for market development for reusable and 
recyclable waste materials. 
 $70,000 the first year and $70,000 the 
second year is for technical assistance 
and administration of grants, loans, 
and municipal cost recovery payments. 
 $122,000 the first year and $122,000 
the second year is for solid waste 
management planning assistance in the 
metropolitan area. 
 $502,000 the first year and $502,000 
the second year is for grants and loans 
for resource recovery and public 
education. 
 Any unencumbered balances remaining in 
the first year do not cancel but are 
available for the second year of the 
biennium for the same purpose.  If in 
any year the amount in the abatement 
fund is insufficient for these 
appropriations, the appropriation for 
grants and loans for resource recovery 
and public education is reduced 
accordingly.  Each year the council 
shall submit to the legislative 
commission on waste management, in the 
form determined by the commission, a 
budget and work program showing planned 
expenditures from the metropolitan 
landfill abatement fund.  The council 
may not spend the money until the 
commission has made its recommendations 
on the budget and work program.  The 
recommendations are advisory only.  The 
council shall report to the legislature 
by February 15 of each year on 
expenditures from this fund. 
 (c) $2,186,300 is appropriated from the 
general fund to the commissioner of 
finance for transfer on June 30, 1985, 
to the motor vehicle transfer fund. 
 (d) $1,424,300 the first year and 
$1,846,000 the second year is from the 
motor vehicle tranfer fund for use in 
cleanup of waste tire dumps, as 
prioritized by the agency. Any 
unencumbered balance remaining in the 
fiscal year does not cancel but is 
available for the second year.  
 (e) The appropriations in Laws 1984, 
chapter 654, article 2, section 13, 
items (g) and (h), are available until 
expended. 
     Subd. 5.  General Support
   $ 1,154,900  $1,170,600 
              Summary by Fund 
General       $1,066,600  $1,078,400 
Environmental     88,300      92,200
     Sec. 27.  WASTE MANAGEMENT BOARD    1,832,400    1,836,400 
                           1986     1987
     Approved Complement -  31       31 
     General -              22       22 
     Building -              9        9 
 Any unencumbered balance remaining the 
first year does not cancel but is 
available for the second year. 
 If the appropriation for grants for 
either year is insufficient, the 
appropriation for the other year is 
available for it. 
     Sec. 28.  ENERGY AND ECONOMIC 
DEVELOPMENT   
     Subdivision 1.  Total 
Appropriation                           32,253,500   28,648,100 
                            1986    1987
     Approved Complement - 229     227.5
     General -             170.5   169 
     Special -               1.5     1.5
     Federal -              52      52  
     Rural -                 5       5 
              Summary by Fund 
General            $31,522,600  $27,915,400
Special            $    54,700  $    57,500
Motor Vehicle                              
  Transfer         $   676,200  $   675,200
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Energy 
  $1,509,000    $1,457,900 
 $60,000 the first year is for a 
demonstration project at the Mankato 
vocational technical institute 
involving butanol and ethanol 
production from sweet sorghum.  
     Subd. 3.  Economic Development  
  $ 3,016,600 $ 3,072,200 
 $200,000 the first year and $200,000 
the second year is for community 
development corporations.  This 
appropriation is available for 
expenditure only to the extent that it 
is matched by a community development 
corporation with $2 of private money 
for each $3 of state money. 
The commissioner of energy and economic 
development, in consultation with the 
commissioner of agriculture, shall give 
consideration to doing a feasibility 
study for a beef-packing plant in 
Minnesota. 
     Subd. 4.  Tourism 
  $ 5,181,300   $ 5,236,900
 During the biennium, the office of 
tourism may market tourism related 
publications and media promotional 
materials to businesses and 
organizations.  The proceeds from the 
marketing are to be placed in a fund to 
be used for the preparation and 
distribution of the office's 
publications and media promotional 
materials.  This fund shall not cancel 
to the general fund at the end of the 
biennium.  The director shall report to 
the Legislature by January 15, 1987 on 
this fund. 
 In order to develop maximum private 
sector involvement in tourism marketing 
activities, $1,500,000 the first year 
and $1,500,000 the second year shall be 
placed in a separate account for 
tourism marketing activities by the 
office of tourism.  Expenditure of the 
monies in the account is contingent 
upon receipt of an equal match with 
nonstate contributions that have been 
verified and documented.  Up to 
one-third of the required nonstate 
match may be given in in-kind 
contributions. 
 Money appropriated for the purchase of 
computer equipment is available in 
either year of the biennium. 
 The director shall submit a work 
program and semiannual progress 
reports, including the amount of 
nonstate contributions received, to the 
chairman of the senate finance 
committee and the chairman of the house 
of representatives appropriations 
committee. 
 $150,000 the first year and $150,000 
the second year is to market 
Minnesota's health care resources and 
is available only to the extent matched 
by $2 of nonstate money for each $1 of 
state money. 
     Subd. 5.  Administration 
  $  848,600    $  650,500
     Subd. 6.  Community Development 
  $8,404,000    $8,406,800 
 $5,664,700 the first year and 
$5,664,700 the second year is for 
economic recovery grants. 
 $2,000,000 the first year and 
$2,000,000 the second year is for 
payment of a grant to the metropolitan 
council for metropolitan area regional 
parks maintenance and operation money. 
 The appropriation in Laws 1984, chapter 
597, section 8, for regional solid 
waste disposal is reduced by 
$1,000,000.  The remaining $400,000 of 
that appropriation may be paid as 
grants to one or more counties or 
groups of counties among the seven 
counties formerly involved in that 
project, to be used to deal with solid 
waste disposal.  A grant may not be 
paid until the commissioner of energy 
and economic development has determined 
that the additional financing necessary 
to complete the project has been 
committed by other sources. 
 $500,000 the first year is for payment 
of a grant to Hubbard county for 
construction of the Viking Epic Drama 
amphitheater.  The appropriation is 
available only upon a determination by 
the commissioner of energy and economic 
development that the additional 
financing necessary to complete the 
project has been committed by the 
commissioner and nonstate sources.  
Hubbard county shall repay $300,000 to 
the state within ten years from the 
date this grant is paid to the county.  
Repayments must be made in equal 
installments deposited in the state 
treasury and credited to the state 
general fund before November 1 each 
year. 
     Subd. 7.  Science and Technology 
  $1,376,900   $1,405,400
 $96,700 the first year and $96,700 the 
second year is for the council on 
biotechnology. 
 $75,000 the first year and $100,000 the 
second year is for a grant to the 
Minnesota Inventors' Congress.  The 
purposes of this grant include 
establishment of a focal point for 
development of an invention support 
system including an advisory council 
comprised of representatives from the 
public and private sectors; 
coordination of an invention support 
system, primarily in the form of 
semi-autonomous regional centers, while 
protecting, enriching, and promoting 
existing activities such as the 
Minnesota Inventors' Congress, the 
Minnesota Inventors' Hall of Fame, the 
Inventions and Technology Transfer 
Corporation, the Inventors' Club, and 
the Young Inventors' Fair; promotion of 
invention research, with resultant 
knowledge to be disseminated to 
Minnesota educational systems; and 
development of a fiscal design for the 
statewide invention support system.  
The Inventors' Congress shall report to 
the commissioner of energy and economic 
development by June 30 of each year on 
its activities in carrying out the 
purposes of this grant. 
     Subd. 8.  Financial Management 
    $11,246,700   $7,752,800
              Summary by Fund 
General    $10,570,500  $7,077,600
Motor Vehicle 
  Transfer     676,200     675,200
$676,200 the first year and $675,200 
the second year is for transfer from 
the motor vehicle transfer fund to the 
waste tire recycling account in the 
economic development fund for the 
purpose of funding waste tire recycling 
loans and grants.  None of the 
appropriation for the second year shall 
be expended until the commissioner 
submits a report to the chairs of the 
senate finance committee and house 
appropriations committee detailing the 
use of the account during the first 
year of the biennium.  
 $5,450,000 the first year and 
$5,550,000 the second year is for 
transfer by the commissioner of finance 
to the economic development fund. 
 $3,600,000 the first year is for 
transfer by the commissioner of finance 
to the agricultural resource loan 
guarantee fund, to be available until 
expended. 
 $300,000 the first year and $300,000 
the second year is for matching grants 
to conduct building energy audits. 
 $250,000 of the money in the economic 
development fund established by 
Minnesota Statutes, section 116M.06, 
must be used for a matching grant to 
the city of Duluth for planning, 
design, and site improvements to the 
Duluth Zoo.  The city of Duluth match 
may be from any nonstate source. 
     Subd. 9.  Policy Analysis 
   $ 670,400 $ 665,600 
              Summary by Fund 
General            $  615,700   $  608,100 
Special            $   54,700   $   57,500 
     Sec. 29.  WORLD TRADE CENTER 
BOARD                                      807,500      995,100 
    Approved Complement - 9 
 The unexpended balance of the 
appropriation made in Laws 1984, 
chapter 654, section 17 for the world 
trade center board shall not cancel as 
provided in Minnesota Statutes, section 
16A.28 but shall remain available until 
expended. 
 $100,000 the first year and $100,000 
the second year is available only to 
the extent matched by an equal amount 
contributed by private sources, which 
may include in-kind contributions.  The 
value of in-kind contributions must be 
determined by the commissioner of 
finance. 
     Sec. 30.  STATE PLANNING AGENCY     4,939,000    4,934,000 
                             1986     1987 
 Approved Complement -       122      121 
 General -                    78.5     78.5
 Special -                     4.5      4.5 
 Motor Vehicle Transfer -      3        3 
 Revolving -                  22       22 
 Federal -                    13       13 
 Gift -                        1        -- 
              Summary by Fund 
General            $4,417,100   $4,405,600 
Special            $  333,700   $  336,900 
Motor Vehicle 
  Transfer         $  188,200   $  191,500 
 Two positions paid from the motor 
vehicle transfer fund are in the 
unclassified service. 
 $418,400 the first year and $418,400 
the second year is for regional 
planning grants to regional development 
commissions organized under Minnesota 
Statutes, sections 462.381 to 462.396. 
Until June 30, 1987, for state and 
federal grants distributed by state 
agencies to regions of the state not 
having a regional development 
commission, the state agency 
administering the grant program may 
assess the program for administrative 
costs incurred by the agency that 
normally are incurred by the commission.
 $20,700 the first year and $21,600 the 
second year is for the Council of Great 
Lakes Governors.  The appropriation for 
the second year is available for 
expenditure only with the approval of 
the governor after consultation with 
the chairmen of the senate finance 
committee and house of representatives 
appropriations committee and after 
completion of a study, to be carried 
out jointly by the Great Lakes 
Commission and the Council of Great 
Lakes Governors, concerning the proper 
roles of these two agencies. 
 $25,000 the first year is to prepare a 
report to the legislature by January 
15, 1986, on the likely effect that 
current or emerging petroleum marketing 
practices in Minnesota will have on 
consumers, on franchisees, on other 
retailers, and on other segments of the 
gasoline marketing industry in 
Minnesota.  The state planning director 
shall consult with all segments of the 
industry and recommend solutions to any 
problems or inequities that are 
occurring or likely to occur because of 
current or emerging gasoline marketing 
trends in this state.  The state 
planning director may commission a 
competent outside consultant to assist 
in the preparation of the report if the 
consultant has no direct or indirect 
connection with any entity engaged in 
the production, refining, or marketing 
of gasoline or other petroleum products.
     Sec. 31.  NATURAL RESOURCES 
ACCELERATION 
     Subdivision 1.  General Operations 
and Management                           9,240,200    8,074,900

                            Summary by Fund 
General  
 For 1985 - $2,561,000 
Minnesota Resources  $ 8,573,500  $7,408,200 
Water Recreation        $666,700  $  666,700 
Approved complement - 67 
 $2,561,000 for fiscal year 1985 is from 
the general fund for transfer by the 
commissioner of finance on June 30, 
1985, to the Minnesota resources fund.  
In addition to this amount, $400,000 is 
carried over from the fiscal year 1985 
natural resource minerals program and 
transferred to the Minnesota resources 
fund. 
 The amounts that may be spent from this 
appropriation for each activity are 
more specifically described in the 
following subdivisions. 
 For all appropriations in this section, 
if the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
     Subd. 2.  Legislative Commission
on Minnesota Resources                      334,100      261,000
$80,000 the first year is for the 
development of reports and for 
consultants as part of the biennial 
review of Minnesota resource issues by 
the commission members. 
 For the biennium ending June 30, 1987, 
the commission shall review the work 
programs and progress reports required 
under this section, and report its 
findings and recommendations to the 
committee on finance of the senate, 
committee on appropriations of the 
house of representatives, and other 
appropriate committees.  During the 
biennium, the commission shall 
establish oversight committees to 
continue review of a variety of natural 
resource subject areas as it believes 
necessary to carry out its legislative 
charge. 
     Subd. 3.  Department of Natural
Resources                                 4,802,500    3,802,500
Approved complement - 41 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Water Allocation and Management 
       $800,000        $800,000
Approved complement - 4 
 The appropriation is to develop a plan 
and program including management 
information systems and related tools 
that will guide the allocation and 
management of water considering various 
economic, environmental, and social 
values.  This is a joint effort with 
the University of Minnesota natural 
resources research institute and the 
water resources research center. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(b) Lakeshore Development Capacity 
        $50,000         $50,000
Approved complement - 1 
 The appropriation is to establish the 
criteria for determining the 
environmental, social, and economic 
carrying capacity for Minnesota lakes. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(c) Groundwater Investigations and 
Data Automation 
       $400,000        $400,000
Approved complement - 4 
 The appropriation is to develop new 
methods for evaluation of groundwater 
quantity and quality, to provide a 
computer search capability for water 
data, and automate data not already in 
acceptable format.  This is a joint 
effort with the pollution control 
agency, the state planning agency, the 
Minnesota geologic survey and the 
United States geologic survey. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(d) Glacial Drift Geochemistry 
       $100,000        $100,000
Approved complement - 3 
 The appropriation is to determine the 
effectiveness of new methods for 
understanding the mineral potential of 
the state. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(e) Hibbing Core Repository 
        $75,000         $75,000
Approved complement - 1 
 The appropriation is to conduct 
accelerated analysis and classification 
as an aid to understanding the mineral 
potential, and if available, 
incorporate federal drill core into the 
state repository at Hibbing. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(f) Forest Management Information Systems 
       $200,000        $200,000
Approved complement - 4 
 The appropriation is to continue to 
accelerate development and begin 
incorporation of the programs and staff 
into the regular budget as appropriate. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(g) Comprehensive Planning for Fish and 
Wildlife Resources 
       $100,000        $100,000
Approved complement - 3 
 The appropriation is for developing 
strategic plans, policies, and budget 
recommendations. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(h) Scientific and Natural Areas Planning 
        $45,000         $45,000
Approved complement - 1 
 The appropriation is to complete at 
least nine comprehensive plans 
according to Minnesota Statutes, 
chapter 86A, the Outdoor Recreation Act 
of 1975. 
(i) State Park Development 
     $1,080,000      $1,080,000
Approved complement - 7 
 The appropriation is for major 
rehabilitation and new development in 
state parks.  All project costs are 
included in this appropriation.  
$666,700 for the first year and 
$666,700 the second year is from the 
water recreation account in the special 
revenue fund.  During the biennium, the 
commissioner shall make every effort to 
secure federal match or reimbursement 
for the state expenditures. 
(j) Water Access Acquisition and Development 
and Fishing Piers 
       $400,000        $400,000
Approved complement - 4 
 The appropriation is to acquire, 
develop, or rehabilitate access sites 
according to the statewide priorities 
list.  This activity includes the canoe 
and boating route rivers and fishing 
piers on lakes and rivers.  All project 
costs are included in this 
appropriation.  During the biennium, 
the commissioner shall make every 
effort to maximize local effort and 
finances and to secure federal match or 
reimbursement for the state 
expenditures. 
(k) Forest Recreation 
       $237,500        $237,500
Approved complement - 2 
 The appropriation is for rehabilitation 
of recreation facilities.  All project 
costs are included in this 
appropriation.  During the biennium, 
the commissioner shall make every 
effort to secure federal match or 
reimbursement for the state 
expenditures. 
(l) Accelerated Land Exchange and 
Improved Land Management 
       $217,500        $217,500
Approved complement - 5 
 The appropriation is to accelerate land 
exchange through use of automated 
processes; to develop various 
interagency agreements; to develop 
innovative leasing practices; to 
evaluate submerged land issues and 
report on policy needs; and to 
determine the appropriate management of 
islands transferred from federal 
ownership. 
(m) Volunteer Management Intensification 
        $97,500         $97,500
Approved complement - 2 
 The appropriation is to continue the 
coordination of volunteers in all 
disciplines, and to develop a proposal 
for inclusion in regular agency 
operations, and report the findings to 
the committees on finance and 
appropriations. 
(n) KORF Direct Reduction 
        $1,000,000 
 This appropriation is for the 
continuation of the KORF direct 
reduction demonstration program to 
reestablish iron making in Minnesota.  
This appropriation is contingent upon 
receipt by the commissioner of natural 
resources of $1,000,000 in matching 
money from the iron range resources and 
rehabilitation board.  Any unencumbered 
balance remaining in the first year 
does not cancel but is available for 
the second year. 
     Subd. 4.  Pollution Control Agency      749,600      705,400
Approved complement - 15 
 Two positions are for contractual work 
with the department of natural 
resources in the groundwater 
investigation and data automation 
programs. 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Soil and Watershed Acidification 
        $80,000         $80,000
Approved complement - 1 
 The appropriation is for the final 
phase of a four-year evaluation of the 
sensitivity of soils to acid deposition.
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(b) Lake Improvement Grant Program 
        $35,000         $35,000
Approved complement - 1 
 The appropriation is to provide one 
position to administer the federal 
clean lakes grant program. 
(c) Groundwater Monitoring Techniques 
        $83,300         $66,700
Approved complement - 1 
 The appropriation is to determine 
whether current sampling techniques are 
adequate and representative of the 
aquifers being monitored. 
(d) Leaking Underground Storage Tank Study 
      $109,400         $90,600
Approved complement - 2 
 The appropriation is to determine the 
nature and extent of environmental 
problems related to underground storage 
tanks. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(e) A Study of Septic Tank and 
Drainfield Systems 
       $124,600         $65,400
Approved complement - 2 
 The appropriation is to determine the 
impact from toxic organic compounds and 
to study the design criteria adequacy 
to prevent overloads. 
(f) Mercury in Northern Minnesota 
        $67,500         $67,500
Approved complement - 1 
 The appropriation is to determine the 
nature, extent, and potential sources 
of mercury contamination in lakes. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(g) Household Hazardous Waste 
Collection Pilot Project 
        $88,600        $111,400
Approved complement - 2 
 The appropriation is for collection, 
analysis, and disposal of household 
generated hazardous wastes as a pilot 
project to determine future 
directions.  During the biennium, the 
PCA may administer and supervise these 
efforts; any state department or 
agency, county, or local unit of 
government may assist the PCA in 
administering, planning, and evaluating 
collection efforts; and the PCA may 
arrange with properly permitted or 
registered waste transporters or 
facilities to accomplish portions of 
this program. 
(h) Municipal Solid Waste Incinerator 
Evaluation 
       $161,200        $188,800
Approved complement - 3 
 The appropriation is to determine 
potential environmental problems, 
including air emissions and ash 
composition, and alternative disposal 
options. 
     Subd. 5.  Department of Energy and
Economic Development                       1,967,000    1,933,000
Approved complement - 6 
The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Recreation Grants Program 
     $1,700,000      $1,700,000
Approved complement - 5 
 The appropriation is for acquisition 
and development of recreation open 
space projects requested by local units 
of government.  Priority is for 
projects that receive federal grants.  
The cost of administration is included 
in this appropriation.  This 
appropriation is for grants of up to 50 
percent of the total cost, or 50 
percent of the local share if federal 
money is used.  The per project limit 
for state grants is $400,000.  During 
the biennium, notwithstanding any other 
law to the contrary, grants are not 
contingent upon the matching of federal 
grants.  State grants are limited to 
one per local unit for the biennium. 
 $1,000,000 the first year and 
$1,000,000 the second year is for 
projects outside the metropolitan area. 
 As a one-biennium effort, up to 
$1,000,000 of this appropriation is for 
outdoor athletic field development 
grants.  The per project limit for 
athletic field grants is $40,000 if no 
federal money is used, and $20,000 
where federal money is used.  Grants 
are limited to field construction, 
fencing, lighting, gravel entry roads, 
and gravel parking lots.  Priority 
consideration must be given where more 
extensive financial cooperation is 
demonstrated.  $250,000 the first year 
and $250,000 the second year is 
reserved for projects outside the 
metropolitan area. 
 This appropriation must be spent with 
the approval of the governor after 
consultation with the legislative 
advisory commission.  The legislative 
commission on Minnesota resources shall 
make recommendations to the legislative 
advisory commission regarding the 
expenditures. 
(b) Biomass Energy Cash Crop Project 
       $192,000        $158,000
Approved complement - 1 
 The appropriation is to demonstrate the 
commercial, farm-scale viability of a 
special woody biomass energy crop. 
(c) Demonstration Project for Heat 
Extraction from Groundwater for Public 
Buildings 
        $75,000         $75,000
 The appropriation is for a research and 
demonstration public building that 
employs various innovative energy 
systems.  This project will be 
conducted in cooperation with the 
University of Minnesota building energy 
research center.  This appropriation is 
contingent on a local share of at least 
$100,000 from the city of Blaine. 
     Subd. 6.  State Planning Agency 
Approved complement - 1 
 This position is for contractual work 
with the department of natural 
resources in the groundwater 
investigation and data automation 
program. 
     Subd. 7.  Department of Health          498,000      402,000
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Organic Chemicals Survey 
       $378,000        $322,000
 The appropriation is to survey 
groundwater aquifers and drinking water 
supplies for the presence and extent of 
volatile and synthetic organic 
chemicals.  
 The data collected by this activity 
that has common value for natural 
resource planning must be provided and 
integrated into the Minnesota land 
management information system's 
geographic and summary data bases 
according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(b) Indoor Air Quality and Moisture 
Control in Buildings 
       $120,000         $80,000
 The appropriation is for a statewide 
sample survey and assessment of radon 
and organic chemicals in homes, and an 
assessment and report on indoor 
moisture and other gas problems. 
     Subd. 8.  Department of Agriculture      47,500       47,500
Approved complement - 4 
 Three positions are for contractual 
work with the health department organic 
chemical surveys. 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Evaluation of Soil and Water 
Conservation Information Assistance 
Programs 
        $22,500         $22,500
Approved complement - 1 
 The appropriation is to measure the 
impact of information assistance 
strategies on landowner acceptance of 
conservation practices in selected 
areas. 
(b) Soil and Water Conservation 
Exhibit at FARMAMERICA 
        $25,000         $25,000
 The appropriation is to develop an 
exhibit at the interpretive center for 
live action simulation of soil and 
water movement, to demonstrate the 
erosion potentials and the use of 
proven conservation measures.  During 
the biennium, technical and cost share 
assistance will be provided by the soil 
conservation service. 
     Subd. 9.  University of Minnesota     2,749,000    2,751,000
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Effects of Copper Sulfate Treatments 
        $37,000         $38,000
 The appropriation is for the Gray 
Freshwater Biological Institute to 
study the environmental effects of 
treating lakes with copper sulfate.  
The money is only available if at least 
an equal amount is provided by private 
sources. 
(b) Research on River and Lake 
Management 
        $95,000         $95,000
 The appropriation is for the St. 
Anthony Falls hydraulics laboratory to 
complete the study of lake water 
quality simulations, river oxygen 
dynamics, and river scour and fill 
effects. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity.  
(c) Lanesboro Watershed Management 
Techniques 
       $127,000        $128,000
 The appropriation is for the Minnesota 
geologic survey for an 
interdisciplinary approach to 
understand and implement solutions to 
groundwater pollution problems in 
cooperation with the college of 
forestry, agricultural experiment 
station, and the Minnesota department 
of agriculture. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(d) Age, Residence Times, and 
Recharge Rates of Groundwater 
        $50,000         $50,000
 The appropriation is for the Minnesota 
geologic survey to determine the age 
and residence time in selected aquifers 
and understand the recharge rates. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(e) Aeromagnetic Mapping 
       $400,000        $400,000
 The appropriation is for the fourth 
biennium of a six-biennium effort to 
electronically acquire geologic data, 
including minimal groundtruth drilling. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(f) Computer Models of Contaminant 
Spreading 
       $100,000        $100,000
 The appropriation is for the civil and 
mineral engineering department to 
develop, test, and implement 
interactive models to simulate 
groundwater transport of chemicals in 
the twin city metropolitan area. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity.  
(g) Quantitative Estimation of 
Minerals 
       $195,000        $195,000
 The appropriation is for the mineral 
resources research center to provide 
matching money for the installation of 
prototype analytic equipment in 
conjunction with the heavy ion probe 
facility, and to research the 
characteristics of taconite separation 
and concentration. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(h) Assessment of Forest Product 
Development Opportunities 
       $100,000        $100,000
 The appropriation is for the natural 
resources research institute to examine 
potentials for increased primary and 
secondary forest product manufacturing 
as a guide to research and economic 
development efforts in cooperation with 
the department of natural resources. 
(i) Biotechnology Applications in 
Forestry 
       $125,000        $125,000
 The appropriation is for the college of 
forestry to develop high technology 
applications for forest regeneration 
and utilization. 
(j) Anaplasmosis Study 
        $50,000         $50,000
 The appropriation is for the college of 
veterinary medicine to conduct a study 
of the reservoirs, transmission, and 
control of this disease in cattle and 
wildlife.  This is the only natural 
resource acceleration money to be 
provided for such a study. 
(k) Accelerated Soils Survey 
     $1,225,000      $1,225,000
 The appropriation is for the 
agricultural experiment station for the 
fifth biennium of a seven-biennium 
effort to provide the appropriate 
detailed survey based on the adopted 
federal, state, and local cost share, 
and to automate the data for selected 
counties on a cost share basis.  Up to 
$300,000 is for a computer work station 
for soils automation at the land 
management information center. 
 During the biennium, the data collected 
by this activity that has common value 
for natural resource planning must be 
provided and integrated into the 
Minnesota land management information 
system's geographic and summary data 
bases according to published data 
compatibility guidelines.  Costs 
associated with this data delivery must 
be borne by this activity. 
(l) Underground Grain Storage 
        $75,000         $75,000
 The appropriation is to develop and 
test innovative storage, including 
remote monitoring and evaluation of 
grain conditions and bin design. 
(m) Compost and Co-compost Research 
       $100,000        $100,000
 The appropriation is for the soils 
department to determine biological 
specifications and material changes 
during composting to improve municipal 
waste management. 
(n) Development of Biological 
Approaches to Lake Restoration 
        $70,000         $70,000
 The appropriation is for the 
limnological research center to develop 
low-cost environmentally sound lake 
restoration techniques. 
     Subd. 10.  Minnesota Historical Society  172,500     172,500
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) Comprehensive Historic Preservation 
Planning 
        $22,500         $22,500
 The appropriation is to develop a 
comprehensive plan for preservation.  
Federal money received is appropriated 
for this purpose. 
(b) Conservation of Historic 
Collections 
        $50,000         $50,000
 The appropriation is to continue the 
joint state and private effort to 
repair, restore, and stabilize the 
collections.  The match money is 
appropriated. 
(c) Environmental Oral History Series 
        $50,000         $50,000
 The appropriation is to develop a 
program that brings together research 
and various information, including 
conducting oral interviews, to create a 
collection on environmental issues. 
(d) Historic Site Craft Program 
        $50,000          $50,000
 The appropriation is to produce 
authentic craft items for sale at 
historic sites and evaluate the 
potential for site income and broader 
program implementation. 
     Subd. 11.  General Reduction 
    ($2,500,000)     ($2,500,000) 
 The commissioner of finance, upon 
recommendation of the legislative 
commission on Minnesota resources, 
shall allocate this reduction among the 
programs and activities in this section.
As the cash flow of the Minnesota 
resources fund permits, the 
commissioner of finance shall transfer 
$5,000,000 from the unencumbered 
balance in the Minnesota resources fund 
and credit it to the general fund. 
     Subd. 12.  Work Programs
 It is a condition of acceptance of the 
appropriations made by this section 
that the agency or entity receiving the 
appropriation must submit work programs 
and semi-annual progress reports in the 
form determined by the legislative 
commission on Minnesota resources.  
None of the money provided in this 
subdivision may be spent unless the 
commission has approved the pertinent 
work program.  Upon request from the 
commission, the agency head shall 
submit an evaluation by July 1, 1986, 
as to whether the program should be 
incorporated in the next agency budget. 
     Subd. 13.  Complement Temporary
 Persons employed by a state agency and 
paid by an appropriation in this 
section are in the unclassified civil 
service, and their continued employment 
is contingent upon the availability of 
money from the appropriation.  When the 
appropriation has been spent, their 
positions shall be canceled and the 
approved complement of the agency 
reduced accordingly.  Part-time 
employment of persons is authorized. 
     Subd. 14.  Federal Reimbursement 
Account                                   420,000     500,000 
 This appropriation is for the spending 
purposes in the natural resources 
federal reimbursement account in 
Minnesota Statutes, section 86.72. 
     Sec. 32.  LABOR AND INDUSTRY 
     Subdivision 1.  Total 
Appropriation                           14,307,600   14,278,800 
                           1986   1987
 Approved Complement -      350    346
 General -                   93     93 
 Special -                   33     33
 Federal -                   44.5   44.5
 Workers' Compensation -    179.5  175.5
              Summary by Fund 
General            $6,865,600   $6,840,200 
Special            $1,185,800   $1,172,400 
Workers' Comp.     $6,256,200   $6,266,200 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Employment Standards 
  $  859,700    $  856,300 
     Subd. 3.  Workers' Compensation 
Regulation and Enforcement 
  $3,143,800    $3,113,400 
This appropriation is from the special 
compensation fund. 
     Subd. 4.  Workers' Compensation 
State Employee Claims 
  $1,798,600    $1,820,400 
 $310,500 the first year and $322,900 
the second year is for payment of peace 
officer survivor benefits under 
Minnesota Statutes, section 352E.04.  
If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it.  
     Subd. 5.  Workers' Compensation 
Special Compensation Fund 
  $3,188,600   $3,229,500 
Of this appropriation $1,188,600 the 
first year and $1,229,500 the second 
year is from the special compensation 
fund. 
 $2,000,000 the first year and 
$2,000,000 the second year is for 
reimbursement of the special 
compensation fund under Minnesota 
Statutes, section 176.183, subdivision 
2.  
     Subd. 6.  Code Enforcement  
  $ 1,140,400   $ 1,126,500
 This appropriation is from the special 
revenue fund. 
     Subd. 7.  OSHA 
  $ 1,134,200   $ 1,142,900
              Summary by Fund 
General            $1,088,800   $1,097,000 
Special            $   45,400   $   45,900 
 $45,400 the first year and $45,900 the 
second year is from the special revenue 
fund for passenger elevator inspection. 
 This appropriation includes money to 
pay for the study of construction 
elevator safety inspections required by 
this act. 
     Subd. 8.  General Support 
  $2,075,600    $2,035,100 
              Summary by Fund 
General            $  816,200   $  767,400 
Workers' Comp.     $1,259,400   $1,267,700 
 $10,000 the first year is for the 
commissioner of labor and industry to 
conduct a study to determine the value 
of specially designed vests in reducing 
the incidence of back injury, reducing 
chronic back pain, and speeding 
recovery from back strain.  The 
commissioner shall report the results 
of the study to the chairmen of the 
senate finance committee and house 
appropriations committee.  If the 
results of the study are favorable, 
$30,000 is appropriated to purchase 
additional vests. 
     Subd. 9.  Information Management 
Services 
  $  966,700    $  954,700 
              Summary by Fund 
General            $  302,300   $  299,100 
Workers' Comp.     $  664,400   $  655,600 
     Sec. 33.  WORKERS' COMPENSATION 
COURT OF APPEALS                           467,000      469,800 
    Approved Complement - 9 
 This appropriation is from the workers' 
compensation special compensation fund. 
     Sec. 34.  MEDIATION SERVICES        1,254,200    1,229,700 
    Approved Complement - 24 
 $50,000 the first year and $50,000 the 
second year is for grants to area 
labor-management committees.  The 
unencumbered balance remaining in the 
first year does not cancel but is 
available for the second year. 
     Sec. 35.  PUBLIC EMPLOYMENT
RELATIONS BOARD                              56,200       56,600 
    Approved Complement - 1 
     Sec. 36.  MILITARY AFFAIRS  
     Subdivision 1.  Total 
Appropriation                             5,668,200    5,669,500 
    Approved Complement - 301.8 
    General - 136.8 
    Federal - 165 
 The department of military affairs in 
cooperation with the management 
analysis unit of the department of 
administration shall prepare a report 
for the Legislature by January 15, 
1986, on the operating costs incurred 
by the state for each national guard 
armory and the income generated by 
local units of government from use of 
each armory.  Also to be included in 
the report are costs the state incurs 
due to assessments levied by local 
units of government on each national 
guard armory.  
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Maintenance of Military 
Training Facilities 
  $4,413,400    $4,426,900 
 $100,000 the first year and $100,000 
the second year is for six general fund 
positions to support the federal 
construction program. 
     Subd. 3.  General Support
  $1,254,800    $1,242,600 
 $75,000 the first year and $75,000 the 
second year is for expenses of military 
forces ordered to active duty under 
Minnesota Statutes, chapter 192.  If 
the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it.  
     Sec. 37.  VETERANS AFFAIRS 
     Subdivision 1.  Total 
Appropriation                           12,739,700   12,667,600 
    Approved Complement - 366.5 
    General - 74.8 
    Special - 291.7 
              Summary by Fund 
General           $ 6,095,800  $ 5,802,900 
Special           $10,229,800  $10,324,500 
Transfers to 
  Other Direct   ($ 3,585,900)($ 3,459,800) 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Veterans Benefits and 
Services 
  $2,509,900    $2,343,100 
 During the biennium, in administering 
veterans benefits programs the 
commissioner shall ensure that veterans 
participate in all federally funded 
benefit programs to the maximum extent 
possible before receiving assistance 
under state funded programs.  The 
appropriation for fiscal year 1987 is 
contingent upon the department's 
submission of a report to the 
legislature by January 15, 1986, 
detailing the efforts taken to assure 
maximum participation in federal 
programs. 
 $988,100 the first year and $988,100 
the second year is for emergency 
financial and medical needs of 
veterans.  For the biennium ending June 
30, 1987, the commissioner shall limit 
financial assistance to veterans and 
dependents to six months, unless 
recipients have been certified as 
ineligible for other benefit programs.  
If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it.  
 $38,500 the first year and $38,500 the 
second year is for war veterans and war 
orphans education aid, to be spent 
under Minnesota Statutes, section 
197.75.  
 $29,500 the first year and $29,500 the 
second year is for the veterans affairs 
office in Duluth, which the 
commissioner shall continue during the 
biennium ending June 30, 1987. 
     Subd. 3.  Veterans Home - Minneapolis
  $ 7,990,900    $ 8,056,000 
              Summary by Fund 
General           $ 2,169,700  $ 2,037,300 
Transfers to 
  Other Direct   ($ 2,169,700)($ 2,037,300) 
Special           $ 7,990,900  $ 8,056,000 
 The appropriation from the general fund 
is for transfer by the commissioner of 
finance to the special revenue fund to 
support appropriations from the special 
revenue fund that are not fully 
supported by income from the federal 
government and charges to residents. 
     Subd. 4.  Veterans Home - Hastings 
  $ 2,238,900    $ 2,268,500 
              Summary by Fund 
General           $ 1,416,200  $ 1,422,500 
Transfers to 
  Other Direct   ($ 1,416,200)($ 1,422,500) 
Special           $ 2,238,500  $ 2,268,500 
 The appropriation from the general fund 
is for transfer by the commissioner of 
finance to the special revenue fund to 
support appropriations from the special 
revenue fund that are not fully 
supported by income from the federal 
government and charges to residents. 
     Sec. 38.  INDIAN AFFAIRS COUNCIL      258,100      258,900 
    Approved Complement - 7 
 Ten percent of the appropriation for 
each year is available for allotment 
only upon demonstration of dollar for 
dollar match with nonstate 
contributions.  During the biennium, up 
to one-third of the nonstate match 
requirement may be met with in-kind 
contributions.  All funds not receiving 
a nonstate match shall cancel to the 
general fund.  Nonstate contributions 
raised by the council in fiscal year 
1985 or fiscal year 1986 in excess of 
the nonstate match requirement shall be 
credited to the 10 percent nonstate 
match requirement in the subsequent 
fiscal year. 
     Sec. 39.  COUNCIL ON AFFAIRS 
OF SPANISH-SPEAKING PEOPLE                 121,700      121,700 
    Approved Complement - 3 
 Ten percent of the appropriation for 
each year is available for allotment 
only upon demonstration of dollar for 
dollar match with nonstate 
contributions.  During the biennium, up 
to one-third of the nonstate match 
requirement may be met with in-kind 
contributions.  All funds not receiving 
a nonstate match shall cancel to the 
general fund.  Nonstate contributions 
raised by the council in fiscal year 
1985 or fiscal year 1986 in excess of 
the nonstate match requirement shall be 
credited to the 10 percent nonstate 
match requirement in the subsequent 
fiscal year. 
 The council shall seek broad-based 
input from Minnesota's Spanish-speaking 
community in preparing a report on the 
council's governance, goals, and 
community development plans to be 
presented to the legislature by January 
15, 1986.  
     Sec. 40.  COUNCIL ON BLACK 
MINNESOTANS                               121,800      122,200 
    Approved Complement - 3.5 
 Ten percent of the appropriation for 
each year is available for allotment 
only upon demonstration of dollar for 
dollar match with nonstate 
contributions.  During the biennium, up 
to one-third of the nonstate match 
requirement may be met with in-kind 
contributions.  All funds not receiving 
a nonstate match shall cancel to the 
general fund.  Nonstate contributions 
raised by the council in fiscal year 
1985 or fiscal year 1986 in excess of 
the nonstate match requirement shall be 
credited to the 10 percent nonstate 
match requirement in the subsequent 
fiscal year. 
     Sec. 41.  COUNCIL ON 
ASIAN-PACIFIC MINNESOTANS                   75,000       75,000 
    Approved Complement - 3 
 Ten percent of the appropriation for 
each year is available for allotment 
only upon demonstration of dollar for 
dollar match with nonstate 
contributions.  During the biennium, up 
to one-third of the nonstate match 
requirement may be met with in-kind 
contributions.  All funds not receiving 
a nonstate match shall cancel to the 
general fund.  Nonstate contributions 
raised by the council in fiscal year 
1986 in excess of the nonstate match 
requirement shall be credited to the 10 
percent nonstate match requirement in 
the subsequent fiscal year. 
     Sec. 42.  COUNCIL FOR THE
HANDICAPPED                                376,400      378,200 
    Approved Complement - 10 
 Ten percent of the appropriation for 
each year is available for allotment 
only upon demonstration of dollar for 
dollar match with nonstate 
contributions.  During the biennium, up 
to one-third of the nonstate match 
requirement may be met with in-kind 
contributions.  All funds not receiving 
a nonstate match shall cancel to the 
general fund.  Nonstate contributions 
raised by the council in fiscal year 
1985 or fiscal year 1986 in excess of 
the nonstate match requirement shall be 
credited to the 10 percent nonstate 
match requirement in the subsequent 
fiscal year. 
     Sec. 43.  HUMAN RIGHTS  
     Subdivision 1.  Total 
Appropriation                            2,322,000    2,251,800 
Approved Complement - 1986  1987
                       67    65
 Two positions from the backlog 
reduction unit shall cancel on July 1, 
1986 and the approved complement of the 
department for fiscal year 1987 shall 
be reduced accordingly. 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
     Subd. 2.  Enforcement
  $1,659,600    $1,588,500
 The department's mobile unit must give 
high priority to investigating human 
rights complaints and conducting 
intake, fact-finding mediation, and 
educational outreach services in the 
Duluth area.  
     Subd. 3.  Administration 
  $  662,400    $  663,300 
     Sec. 44.  HOUSING FINANCE 
AGENCY  
     Subdivision 1.  Total 
Appropriation                          $12,115,000   $11,891,700 
    Approved Complement - 129 
 Spending limit on cost of general 
administration of agency programs:  
     1986          1987 
  $5,372,600    $5,484,200 
 This appropriation is for transfer to 
the housing development fund for the 
programs specified in subdivisions 2 to 
5. 
     Subd. 2.  Multifamily Housing
  $  550,000    $  550,000 
 $550,000 the first year and $550,000 
the second year is for a shared 
residence demonstration program. 
     Subd. 3.  Single Family Housing
  $5,125,000    $5,125,000 
 $1,500,000 the first year and 
$1,500,000 the second year is for home 
ownership assistance under Minnesota 
Statutes, section 462A.21, subdivision 
8. 
 $1,250,000 the first year and 
$1,250,000 the second year is for 
single family interest rate writedowns 
under Minnesota Statutes, section 
462A.21, subdivision 4b. 
 $500,000 the first year and $500,000 
the second year is for the tribal 
Indian mortgage loan program under 
Minnesota Statutes, section 462A.07, 
subdivision 14. 
 $1,500,000 the first year and 
$1,500,000 the second year is for other 
tribal Indian housing programs under 
Minnesota Statutes, section 462A.07, 
subdivision 14. 
 $375,000 the first year and $375,000 
the second year is for urban Indian 
housing programs under Minnesota 
Statutes, section 462A.07, subdivision 
15. 
     Subd. 4.  Housing Rehabilitation
  $6,390,000    $6,216,700 
 $150,000 is to make deferred loans to 
enrolled members of the Minnesota 
Chippewa tribe and the Red Lake band of 
Chippewa Indians to rehabilitate single 
family homes under Minnesota Statutes, 
section 462A.05, subdivision 14a.  The 
housing finance agency shall report to 
the legislature by March 1, 1986, on 
the progress of this loan program. 
 $3,490,000 the first year and 
$3,466,700 the second year is for 
rehabilitation loans under Minnesota 
Statutes, section 462A.05, subdivision 
15. 
 $2,500,000 the first year and 
$2,500,000 the second year is for home 
improvement interest rate writedowns 
under Minnesota Statutes, section 
462A.05, subdivision 23. 
 $250,000 the first year and $250,000 
the second year is for improving 
accessibility to housing under 
Minnesota Statutes, section 462A.05, 
subdivision 15a. 
     Subd. 5.  Housing Research 
  $   50,000     
 This appropriation is for a home equity 
study. 
     Subd. 6.  Department of Economic 
Security 
    $170,000       $170,000
 This appropriation is to the department 
of economic security for operating 
expenses of temporary housing 
demonstration program facilities, 
including but not limited to those four 
temporary housing demonstration program 
facilities for which operating expenses 
were disbursed in fiscal year 1985 by 
the department of economic security and 
for which rehabilitation or acquisition 
money was also disbursed in fiscal year 
1985 by the Minnesota Housing Finance 
Authority. 
$140,000 of the balance in the 
innovative multifamily housing fund 
created by Minnesota Statutes, section 
462A.05, subdivision 18a, is canceled 
to the general fund. 
     Sec. 45.  GENERAL CONTINGENT  
ACCOUNTS                                 1,575,000    1,575,000 
 The appropriations in this section must 
be spent with the approval of the 
governor after consultation with the 
legislative advisory commission under 
Minnesota Statutes, section 3.30. 
 If an appropriation in this section for 
either year is insufficient, the 
appropriation for the other year is 
available for it. 
              Summary by Fund 
General            $1,500,000   $1,500,000 
Game and Fish      $   75,000   $   75,000 
 Part of the appropriation from the 
general fund may be transferred to the 
special revenue fund and is 
appropriated to meet the general 
contingent needs of appropriations 
formerly made from the general fund. 
     Sec. 46.  TORT CLAIMS                 468,200       25,000
 To be spent by the commissioner of 
finance.  
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it.  
              Summary by Fund 
General            $  443,200   
Game and Fish      $   25,000   $   25,000 
     Sec. 47.  DEBT SERVICE            137,283,000  150,517,000 
 The appropriation is for transfer by 
the commissioner of finance to the 
state bond fund.  
 If this appropriation is insufficient 
to make all transfers required in the 
year for which it is made, the 
commissioner of finance shall notify 
the committee on finance of the senate 
and the committee on appropriations of 
the house of representatives of the 
amount of the deficiency and shall then 
transfer that amount under the 
statutory open appropriation.  
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
     Sec. 48.  MINNESOTA STATE 
RETIREMENT SYSTEM                         4,348,000    4,739,000
 The amounts estimated to be needed for 
each program are as follows: 
(a)  Legislators 
  $1,970,000    $2,168,000 
 Under Minnesota Statutes, sections 
3A.03, subdivision 2; 3A.04, 
subdivisions 3 and 4; and 3A.11. 
(b)  Judges
  $2,224,000    $2,405,000 
 Under Minnesota Statutes, sections 
490.106; and 490.123, subdivision 1. 
(c)  Constitutional Officers
  $  116,000    $  128,000 
 Under Minnesota Statutes, sections 
352C.031, subdivision 5; 352C.04, 
subdivision 3; and 352C.09, subdivision 
2. 
(d)  State Employee Supplemental Benefits 
  $   38,000    $   38,000 
 Under Minnesota Statutes, section 
352.73. 
 If an appropriation in this section for 
either year is insufficient, the 
appropriation for the other year is 
available for it. 
     Sec. 49.  PUBLIC EMPLOYEES 
RETIREMENT ASSOCIATION                      30,000       30,000 
 This appropriation is for supplemental 
benefits under Minnesota Statutes, 
section 353.83. 
 If an appropriation in this section for 
either year is insufficient, the 
appropriation for the other year is 
available for it. 
     Sec. 50.  MINNEAPOLIS EMPLOYEES 
RETIREMENT FUND                          8,286,000   11,911,700 
 The appropriation is to the 
commissioner of finance for payment to 
the Minneapolis employees retirement 
fund under Minnesota Statutes, section 
422A.101, subdivision 3. 
 If an appropriation in this section for 
either year is insufficient, the 
appropriation for the other year is 
available for it. 
The legislative commission on pensions 
and retirement shall have the 
commission's actuary review all the 
assumptions used by the actuary for the 
Minneapolis employees retirement fund 
for 1985 and recalculate the amount of 
the state payment to the fund for the 
fiscal year ending June 30, 1987.  The 
appropriation for that year is reduced 
to the amount of the recalculated 
payment. 
     Sec. 51.  POLICE AND FIRE 
AMORTIZATION AID                         7,537,000    7,537,000 
 The appropriation is to the 
commissioner of finance for state aid 
to amortize the unfunded liability of 
local police and salaried firefighters' 
relief associations, under Minnesota 
Statutes, section 423A.02.  If an 
appropriation in this section for 
either year is insufficient, the 
appropriation for the other year is 
available for it. 
    Sec. 52.  SALARY SUPPLEMENT          32,921,700   56,631,400
    Subdivision 1.  Appropriations 
 Except as limited by the direct 
appropriations made in this section, 
the amounts necessary to pay 
compensation and economic benefit 
increases covered by this section are 
appropriated from the various funds in 
the state treasury from which salaries 
are paid to the commissioner of finance 
for the fiscal years ending June 30, 
1986, and June 30, 1987.  In the case 
of salaries that are paid from one 
fund, but that fund is reimbursed by 
another fund, the amounts necessary to 
make these reimbursements are also 
appropriated.  
 (a) General Fund  
   $22,850,000     $39,461,900 
For 1985 - $650,000 
 $3,500,000 the first year and 
$7,000,000 the second year is for 
comparability adjustments. 
 $650,000 for 1985, $4,250,000 the first 
year, and $3,750,000 the second year is 
for Fair Labor Standards Act 
adjustments. 
 The appropriation for the second year 
for the Fair Labor Standards Act is 
available only with the approval of the 
governor after consultation with the 
legislative advisory commission, under 
Minnesota Statutes, section 3.30.  By 
January 15, 1986, the commissioner of 
employee relations must submit to the 
chairmen of the senate finance 
committee and house of representatives 
appropriations committee a report that 
outlines the efforts made by appointing 
authorities to reduce the number of 
assigned overtime hours.  Reductions in 
overtime must be consistent with 
cost-effective staffing levels and with 
negotiated labor contracts. 
 Part of the appropriation from the 
general fund may be transferred to the 
special revenue fund and is 
appropriated to meet the salary 
supplement needs of positions formerly 
paid from the general fund. 
 (b) State Airports Fund 
  $   54,600    $  104,500
 $3,000 the first year and $7,000 the 
second year is for comparability 
adjustments. 
 (c) Game and Fish Fund 
  $1,071,100  $1,713,500 
 $25,000 the first year and $50,000 the 
second year is for comparability 
adjustments. 
 $350,000 the first year and $350,000 
the second year is for Fair Labor 
Standards Act adjustments. 
 (d) Trunk Highway Fund 
  $8,688,600    $14,857,000 
 For 1985 - $650,000 
 $325,000 the first year and $650,000 
the second year is for comparability 
adjustments. 
 $650,000 for 1985, $1,900,000 the first 
year, and $1,900,000 the second year is 
for Fair Labor Standards Act 
adjustments. 
 (e) Highway User Tax Distribution Fund 
  $  257,400    $  494,500
 $75,000 the first year and $150,000 the 
second year is for comparability 
adjustments. 
    Subd. 2.  Increases Covered 
 The compensation and economic benefit 
increases covered by this section are 
those paid to classified and 
unclassified employees and officers in 
the executive, judicial, and 
legislative branches of state 
government, and to employees of the 
Minnesota historical society who are 
paid from state appropriations, if the 
increases are required by existing law 
or authorized by law during the 1985 
session of the legislature or by 
appropriate resolutions for employees 
of the legislature, or are given 
interim approval by the legislative 
commission on employee relations under 
Minnesota Statutes, sections 3.855 and 
43A.18 or 179A.22, subdivision 4, or 
have been recommended by the 
compensation council. 
 The salary increases recommended by the 
compensation council on December 31, 
1984, for legislators, judges, and 
constitutional officers are ratified, 
except that the rate of increase that 
goes into effect on January 1, 1986, 
January 1, 1987, and January 1, 1988, 
must not be more than the lowest 
comparable rate of increase in an 
approved negotiated agreement or 
arbitration award covering state 
employees, as determined by the 
commissioner of employee relations. 
 The salaries for positions listed in 
Minnesota Statutes, section 15A.081, 
subdivision 1, which were given interim 
approval by the legislative commission 
on employee relations after adjournment 
of the 1984 legislature, are ratified, 
retroactive to the effective date for 
each salary approved by the legislative 
commission on employee relations. 
 Within the provisions of the managerial 
plan approved under Minnesota Statutes, 
section 43A.18, an agency may not 
authorize aggregate performance 
increases for its managers that exceed 
an average of five percent in each year 
of the biennium ending June 30, 1987.  
An agency that granted increases less 
than the average increases authorized 
by all state agencies during the 
biennium ending June 30, 1985, may 
exceed this limit by the amount that 
its increases were less than the 
average increases authorized by all 
state agencies during the biennium 
ending June 30, 1985. 
    Subd. 3.  Comparability Adjustments 
 The amounts appropriated for 
comparability adjustments must be 
distributed under Minnesota Statutes, 
section 43A.05, according to the list 
of job classes approved by the 
legislative commission on employee 
relations. 
    Subd. 4.  Notice 
 During the biennium, the commissioner 
of finance shall transfer the necessary 
amounts to the proper accounts and 
shall promptly notify the committee on 
finance of the senate and the committee 
on appropriations of the house of 
representatives of the amount 
transferred to each appropriation 
account. 
     Sec. 53.  PUBLIC SAFETY              40,000          -0-  
 This appropriation is to enable the 
department of public safety to assume 
responsibility for maintaining and 
operating the Minnesota automated 
fingerprint identification network. 
     Sec. 54.  AGRICULTURE               125,000          -0- 
 This appropriation is for the 
commissioner of agriculture to make 
grants to Minnesota nonprofit 
organizations to buy agricultural 
commodities and food produced in the 
state and to ship the commodities and 
food to areas of Africa in need of 
famine relief.  The commissioner shall 
solicit and accept proposals for grants 
until January 1, 1986.  By March 15, 
1986, the commissioner shall allocate 
the money available for grants to the 
nonprofit organizations, giving 
priority to the organizations that will 
buy the largest amount of agricultural 
commodities and food from supplies 
produced in the state.  Each grant must 
be matched by the nonprofit 
organization in an amount at least two 
times the grant amount.  The 
commissioner shall require the 
nonprofit organization to report to the 
commissioner within six months after 
receiving the grant on how the money 
was spent and the relief it provided.  
The commissioner shall report to the 
legislature by April 1, 1986, on the 
famine relief provided by this 
appropriation. 
 This appropriation is available only if 
there is clear indication that 
distribution problems in Africa will 
not be an impediment to effective use 
of the money.  The state planning 
agency, in cooperation with the 
University of Minnesota and the 
department of agriculture, shall devise 
a program of supplying seed and 
agricultural expertise to move toward a 
more long-range solution for African 
famine relief. 
    Sec. 55.  [TRANSFERS.] 
    Subdivision 1.  [GENERAL PROCEDURE.] If the appropriation 
in this act to an agency in the executive branch is specified by 
program, the agency may transfer unencumbered balances among the 
programs specified in that section after getting the approval of 
the commissioner of finance.  The commissioner shall not approve 
a transfer unless the commissioner believes that it will carry 
out the intention of the legislature.  The transfer must be 
reported immediately to the committee on finance of the senate 
and the committee on appropriations of the house of 
representatives.  If the appropriation in this act to an agency 
in the executive branch is specified by activity, the agency may 
transfer unencumbered balances among the activities specified in 
that section using the same procedure as for transfers among 
programs. 
    Subd. 2.  [CONSTITUTIONAL OFFICERS.] A constitutional 
officer need not get the approval of the commissioner of finance 
but must notify the committee on finance of the senate and the 
committee on appropriations of the house of representatives 
before making a transfer under subdivision 1. 
    Subd. 3.  [TRANSFER PROHIBITED.] If an amount is specified 
in this act for an item within an activity, that amount must not 
be transferred or used for any other purpose.  
    Sec. 56.  [STUDY OF ELEVATOR SAFETY INSPECTIONS.] 
    Subdivision 1.  [STUDY ESTABLISHED.] The commissioner of 
labor and industry shall direct a study to establish a 
statewide, annual construction elevator inspection program by 
the commissioner of labor and industry.  The study must be so 
designed and conducted as to constitute a survey of construction 
elevator safety, regulatory compliance, and inspection needs 
throughout the state.  
    Subd. 2.  [STUDY GUIDELINES.] The commissioner of labor and 
industry shall establish guidelines for the study including:  
    (1) a survey of the number and condition of construction 
elevators, which for purposes of this section include 
dumbwaiters, material lifts, powered platform man lifts, and 
hoists; 
    (2) a survey of present construction elevator compliance 
with rules of the commissioner of labor and industry; 
    (3) recommendations of the manpower necessary to field 
qualified state construction elevator inspectors to be able to 
inspect elevators on an annual basis;  
    (4) recommendations of suggested fees to fund on a 
self-supporting basis the cost of statewide, annual construction 
elevator inspections;  
    (5) an assessment of the adequacy of municipal construction 
elevator inspection programs; and 
    (6) recommended changes in the laws of the state as a 
result of the survey and investigation to secure greater safety 
and efficiency and to eliminate duplication of function, effort, 
or activity. 
    Subd. 3.  [REPORT.] The commissioner of labor and industry 
shall report to the legislature findings of fact, initial 
conclusions, and recommendations by January 1, 1986, and if 
requested by the legislature, further findings and 
recommendations by March 1, 1986. 
    Subd. 4.  [ASSISTANCE.] The commissioner may appoint, 
consult, or contract with persons, firms, corporations, 
applicable labor organizations, and governmental subdivisions to 
aid in the study. 
    Sec. 57.  Minnesota Statutes 1984, section 2.722, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DESCRIPTION.] Effective July 1, 1959, the 
state is divided into ten judicial districts composed of the 
following named counties, respectively, in each of which 
districts two or more judges shall be chosen as hereinafter 
specified: 
    1.  Goodhue, Dakota, Carver, LeSueur, McLeod, Scott, and 
Sibley; seven nine judges; and four permanent chambers shall be 
maintained in Red Wing, Hastings, Shakopee, and Glencoe and one 
other shall be maintained at the place designated by the chief 
judge of the district; 
    2.  Ramsey; 13 judges; 
    3.  Wabasha, Winona, Houston, Rice, Olmsted, Dodge, Steele, 
Waseca, Freeborn, Mower, and Fillmore; six 22 judges; and 
permanent chambers shall be maintained in Faribault, Albert Lea, 
Austin, Rochester, and Winona; 
    4.  Hennepin; 24 judges; 
    5.  Blue Earth, Watonwan, Lyon, Redwood, Brown, Nicollet, 
Lincoln, Cottonwood, Murray, Nobles, Pipestone, Rock, Faribault, 
Martin, and Jackson; five judges; and permanent chambers shall 
be maintained in Marshall, Windom, Fairmont, New Ulm, and 
Mankato; 
    6.  Carlton, St. Louis, Lake, and Cook; six judges; 
    7.  Benton, Douglas, Mille Lacs, Morrison, Otter Tail, 
Stearns, Todd, Clay, Becker, and Wadena; four 19 judges; and 
permanent chambers shall be maintained in Moorhead, Fergus 
Falls, Little Falls, and St. Cloud; 
    8.  Chippewa, Kandiyohi, Lac qui Parle, Meeker, Renville, 
Swift, Yellow Medicine, Big Stone, Grant, Pope, Stevens, 
Traverse, and Wilkin; three judges; and permanent chambers shall 
be maintained in Morris, Montevideo, and Willmar; 
    9.  Norman, Polk, Marshall, Kittson, Red Lake, Roseau, 
Mahnomen, Pennington, Aitkin, Itasca, Crow Wing, Hubbard, 
Beltrami, Lake of the Woods, Clearwater, Cass and Koochiching; 
six judges; and permanent chambers shall be maintained in 
Crookston, Thief River Falls, Bemidji, Brainerd, Grand Rapids, 
and International Falls; 
    10.  Anoka, Isanti, Wright, Sherburne, Kanabec, Pine, 
Chisago, and Washington; ten 24 judges; and permanent chambers 
shall be maintained in Anoka, Stillwater, and other places 
designated by the chief judge of the district. 
    Sec. 58.  Minnesota Statutes 1984, section 2.722, is 
amended by adding a subdivision to read: 
    Subd. 4.  [DETERMINATION OF A JUDICIAL VACANCY.] When a 
judge of the district, county, or county municipal court dies, 
resigns, retires, or is removed from office, the supreme court, 
in consultation with judges and attorneys in the affected 
district, shall determine within 90 days of receiving notice of 
a vacancy from the governor whether the vacant office is 
necessary for effective judicial administration.  The supreme 
court may continue the position, may order the position 
abolished, or may transfer the position to a judicial district 
where need for additional judges exists, designating the 
position as either a county, county/municipal or district court 
judgeship.  The supreme court shall certify any vacancy to the 
governor, who shall fill it in the manner provided by law. 
    Sec. 59.  Minnesota Statutes 1984, section 3.099, 
subdivision 1, is amended to read: 
    Subdivision 1.  The compensation of each member of the 
legislature shall be due on the first day of the regular 
legislative session of the term and payable in equal parts on 
the fifteenth day of January in the first month of each term and 
on the first day of each month, February to December, 
inclusive thereafter, during the term for which he was elected.  
The compensation of each member of the legislature elected at a 
special election is due on the day the member takes the oath of 
office and payable within ten days of taking the oath, for the 
remaining part of the month in which the oath was taken, and in 
equal parts thereafter on the first day of each month during the 
term for which he was elected. 
    Each member shall receive mileage for necessary travel in 
going to and returning from the place of meeting to his place of 
residence in such amount and for such trips as may be authorized 
by the senate as to senate members, and by the house of 
representatives as to house members. 
    Each member shall receive in addition to the foregoing, 
such per diem living expenses during a regular or special 
session of the legislature in such amounts and for such purposes 
as may be determined by the senate as to senate members and by 
the house of representatives as to house members; provided, that 
because of the salary increases provided in subdivision 2, the 
amount of the per diem living expenses payable pursuant to this 
section during the 71st legislative session shall be set at a 
level not to exceed $27 for each member who has moved from his 
usual place of lodging during a substantial part of the session 
and not to exceed $17 for each member who has not so changed his 
place of lodging. 
    On the fifteenth day of January in the first month of each 
term and on the first day of each month, February to December, 
inclusive thereafter, the secretary of the senate and the chief 
clerk of the house of representatives, shall certify to the 
commissioner of finance, in duplicate, the amount of 
compensation then payable to each member of their respective 
houses, and the aggregate thereof. 
    Sec. 60.  Minnesota Statutes 1984, section 3.21, is amended 
to read:  
    3.21 [NOTICE.] 
    At least four months preceding the election, the attorney 
general shall furnish to the secretary of state a statement of 
the purpose and effect of all amendments proposed showing 
clearly the form of the existing sections, and of the same as 
they will read if amended, except that when any section to which 
an amendment is proposed exceeds 150 words in length, the 
statement shall show that part of the section in which a change 
is proposed, both in its existing form and as it will read when 
amended, together with portions of the context as the attorney 
general deems necessary to an understanding of the proposed 
amendment.  In the month of October prior to the election, the 
secretary of state shall give two weeks published notice of 
publish the statement once in all qualified newspapers of the 
state.  The secretary of state shall furnish the statement to 
the newspapers in reproducible form approved by the secretary of 
state, set in 7-1/2 point type on an eight point body.  The 
maximum rate for publication shall be as provided in section 
331A.06 for the two publications or 18 cents per standard line, 
whichever is less.  If any newspaper shall refuse the 
publication of the amendments, this refusal and failure of the 
publication shall have no effect on the validity of the 
amendments.  The secretary of state shall also forward to each 
county auditor copies of the statement, in poster form, in 
quantities sufficient to supply each election district of his 
county with two copies thereof.  The auditor shall cause two 
copies to be conspicuously posted at or near each polling place 
on election day.  Wilful or negligent failure by any official 
named to perform any duty imposed upon him by this section shall 
be deemed a misdemeanor. 
    Sec. 61.  Minnesota Statutes 1984, section 3.302, 
subdivision 3, is amended to read: 
    Subd. 3.  The legislative reference library is a depository 
of all documents published by the state and shall receive such 
materials automatically without cost.  As used in this chapter, 
"document" shall include any publication issued by the state, 
constitutional officers, departments, commissions, councils, 
bureaus, research centers, societies, task forces, including 
advisory task forces created under section 15.014 or 15.0593, or 
other agencies supported by state funds, or any publication 
prepared for the state by private individuals or organizations 
and issued in print, including all forms of duplicating other 
than by the use of carbon paper, considered to be of interest or 
value to the legislative reference library.  Intraoffice or 
interoffice memos and forms and information concerning only the 
internal operation of an agency are not included. 
    Sec. 62.  Minnesota Statutes 1984, section 3.303, is 
amended by adding a subdivision to read:  
    Subd. 5.  The commission shall assist state agencies in 
making arrangements for the accommodation and appropriate 
recognition of individuals or groups visiting Minnesota as 
direct or indirect representatives of foreign governments, other 
states, or any of the subdivisions or agencies of foreign 
governments or other states; and provide other services 
determined by the commission.  The commission may make grants, 
employ staff and obtain office space, equipment, and supplies 
necessary to perform the designated duties. 
    Sec. 63.  Minnesota Statutes 1984, section 3.351, 
subdivision 3, is amended to read: 
    Subd. 3.  [REVIEW OF PLANS TO RECEIVE AND SPEND FEDERAL 
ENERGY MONEY.] The plan for receipt and expenditure of money 
resulting from litigation or settlements of alleged violations 
of federal petroleum pricing regulations shall be submitted to 
the commission for review and comment prior to submission to the 
federal government; provided that, if the commission fails to 
review and comment within 30 days, the plan may be submitted 
without commission review.  If the use of the money is not 
governed by federal requirements or restrictions, the commission 
shall develop its own plan for the expenditure of the money.  A 
plan developed by the commission must provide that, to the 
extent feasible, the money will be expended for energy projects 
or other public projects that provide direct benefit to classes 
of consumers affected by the petroleum pricing violations.  The 
plan must allocate the money to projects that benefit classes of 
consumers in proportion to their consumption of petroleum 
products.  The plan may also provide for expenditure of the 
money for programs of the commission.  The commission shall 
submit its plan to the governor or the state agency eligible to 
receive the money from the federal government.  The plan is 
advisory only.  The commission by resolution may request the 
governor or any state agency eligible to receive money from the 
federal government for other energy programs to submit a plan 
for expenditure to the commission for review and comment prior 
to submission to the federal government.  If the governor or the 
agency is required to submit a request to spend the money to the 
legislative advisory commission under section 3.3005, the 
commission shall forward its comments to the legislative 
advisory commission for consideration during its preparation of 
a recommendation. 
    Sec. 64.  Minnesota Statutes 1984, section 3.736, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCLUSIONS.] Without intent to preclude the 
courts from finding additional cases where the state and its 
employees should not, in equity and good conscience, pay 
compensation for personal injuries or property losses, the 
legislature declares that the state and its employees are not 
liable for the following losses: 
    (a) Any loss caused by an act or omission of a state 
employee exercising due care in the execution of a valid or 
invalid statute or regulation; 
    (b) Any loss caused by the performance or failure to 
perform a discretionary duty, whether or not the discretion is 
abused; 
    (c) Any loss in connection with the assessment and 
collection of taxes; 
    (d) Any loss caused by snow or ice conditions on any 
highway or other public place, except when the condition is 
affirmatively caused by the negligent acts of a state employee; 
    (e) Any loss caused by wild animals in their natural state; 
    (f) Any loss other than injury to or loss of property or 
personal injury or death; 
    (g) Any loss caused by the condition of unimproved real 
property owned by the state, which means land that the state has 
not improved, and appurtenances, fixtures and attachments to 
land that the state has neither affixed nor improved; 
     (h) Any loss arising from the construction, operation, or 
maintenance of the outdoor recreation system, as defined in 
section 86A.04, or from the clearing of land, removal of refuse, 
and creation of trails or paths without artificial surfaces, or 
from the construction, operation, or maintenance of a water 
access site created by the iron range resources and 
rehabilitation board, except that the state is liable for 
conduct that would entitle a trespasser to damages against a 
private person. 
    (i) Any loss of benefits or compensation due under a 
program of public assistance or public welfare, except where 
state compensation for loss is expressly required by federal law 
in order for the state to receive federal grants-in-aid; 
    (j) Any loss based on the failure of any person to meet the 
standards needed for a license, permit, or other authorization 
issued by the state or its agents; 
    (k) Any loss based on the usual care and treatment, or lack 
of care and treatment, of any person at a state hospital or 
state corrections facility where reasonable use of available 
appropriations has been made to provide care; 
    (l) Any loss, damage, or destruction of property of a 
patient or inmate of a state institution;  
    (m) Any loss for which recovery is prohibited by section 
169.121, subdivision 9. 
    The state will not pay punitive damages. 
    Sec. 65.  Minnesota Statutes 1984, section 3.85, 
subdivision 11, is amended to read: 
    Subd. 11.  [RULES FOR PENSION VALUATIONS AND COST 
ESTIMATES.] The commission shall by June 30, 1985, adopt rules 
prescribing specific detailed methods of calculating, 
evaluating, and displaying current and proposed law liabilities, 
costs, and actuarial equivalents of all public employee pension 
plans in Minnesota.  These rules shall be consistent with the 
general direction prescribed in chapter 356.  
    There is appropriated from the general fund to the 
commission not to exceed $75,000 in fiscal year 1985, and 
$25,000 in each fiscal year thereafter for developing, 
implementing, and annually updating the rules adopted pursuant 
to this section.  
    Sec. 66.  [3.875] [LEGISLATIVE COMMISSION ON ECONOMIC 
DEVELOPMENT STRATEGY.] 
    Subdivision 1.  [COMMISSION CREATED.] A legislative 
commission on economic development strategy is created to review 
state economic development efforts and recommend a strategy for 
state economic development activities. 
    Subd. 2.  [MEMBERSHIP.] The commission consists of ten 
members:  five members of the senate appointed by the 
subcommittee on committees of the committee on rules and 
administration and five members of the house of representatives 
appointed by the speaker.  The members shall elect the chair. 
    Subd. 3.  [COMPENSATION.] Members of the commission shall 
be compensated in the manner provided by section 3.101. 
    Subd. 4.  [STAFF ASSISTANCE.] The commission may appoint an 
executive director in the unclassified service and hire staff 
who may request and shall receive reasonable assistance from 
other state agencies.  The director of state planning, the 
commissioner of energy and economic development, and the 
commissioner of agriculture shall provide, to the extent 
requested by the commission, necessary office space, equipment, 
and staff assistance to the commission to enable the commission 
to carry out its duties.  These agencies shall share the costs 
of the executive director and support staff.  The legislative 
coordinating commission shall also provide office space and 
administrative support to the commission. 
    Subd. 5.  [DUTIES.] The commission shall: 
    (1) review existing data and collect additional data when 
needed regarding existing, proposed, and potential economic 
development programs; 
    (2) review existing economic development programs and 
assess their effectiveness and appropriateness; 
    (3) study state economic development options and develop a 
long-term strategy for state economic development efforts, 
including suggested goals and measurable objectives; and 
    (4) report on the results of those matters specified by 
clauses (1), (2), and (3) to the legislature by February 1, 
1987.  The report shall include but is not limited to the 
strategy required by clause (3), and proposed legislation to 
repeal, revise, or create new or existing economic development 
programs. 
    Subd. 6.  [POWERS.] The commission may:  
    (1) contract for consulting or research services; 
    (2) establish advisory task forces consisting of 
individuals including agency heads or their designees, 
University of Minnesota personnel or their designees, and 
persons in the private sector having knowledge in commerce and 
economic development; and 
    (3) vote to discontinue its work if it reasonably concludes 
that it has complied with subdivision 1 and that there is 
nothing remaining for the commission or its staff to accomplish. 
    Subd. 7.  [FACTUAL CONSIDERATIONS.] In carrying out the 
duties required by subdivision 6, the commission shall consider: 
    (1) the economic and noneconomic strengths and weaknesses 
of the state; 
    (2) economic and noneconomic costs and benefits of 
development, including effects on people, communities, and 
businesses; 
    (3) the proper role and limitations of government efforts 
to aid economic development, including any necessary 
reorganization of state government and any necessary interagency 
coordination and communication; 
    (4) the effect of past and present economic development 
policies and programs, as well as the possibility and results of 
cooperation with the federal government and other midwestern 
states; 
    (5) the proper role of local government, including 
coordination of local programs; 
    (6) the industries or segments of industry and types of 
businesses that should be the focus of state economic 
development efforts; 
    (7) whether the focus of state decision makers should be on 
new firms or businesses, or limited to expansion of existing 
firms or businesses, and what guidelines should be established 
to assure that the development or expansion would not occur 
without state assistance; 
    (8) the effectiveness, including cost effectiveness, 
considering the state's kind and number of resources, of current 
economic development tools, such as job training, grants, loans, 
loan guarantees, tax incentives, subsidies, venture capital, 
technical support, and project incubation; 
    (9) the potential effectiveness of other policies or tools 
not currently provided for; 
    (10) the importance to economic development of state 
educational programs, tax structures, infrastructure, and 
regulation; 
    (11) the effects of existing and potential international 
trade activities and federal fiscal and monetary policy on 
economic development within the state; and 
    (12) the extent to which economic development programs 
should be directed to industries in which Minnesota has a 
comparative advantage or directed to maintaining a diversified 
economy. 
    Subd. 8.  [SUNSET.] This section is repealed July 1, 1987. 
    Sec. 67.  Minnesota Statutes 1984, section 3.9223, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERSHIP.] There is created a state 
council on affairs of Spanish-speaking people to consist of 
seven members appointed by the governor.  The members of the 
council shall be broadly representative of the Spanish-speaking 
community of the state.  The demographic composition of the 
council members shall accurately reflect the demographic 
composition of Minnesota's Spanish-speaking community, including 
migrant workers, as determined by the state demographer.  
Membership, terms, compensation, removal of members and filling 
of vacancies shall be as provided in Minnesota Statutes, section 
15.0575.  The council shall annually elect from its membership a 
chairperson and other officers it deems necessary. The council 
shall expire on the date provided by section 15.059, subdivision 
5. 
    Sec. 68.  [3.9226] [COUNCIL ON ASIAN-PACIFIC MINNESOTANS.] 
    Subdivision 1.  [CREATION.] The state council on 
Asian-Pacific Minnesotans consists of 13 members.  Nine members 
are appointed by the governor and shall be broadly 
representative of the Asian-Pacific community of the state. 
Terms, compensation, removal, and filling of vacancies for these 
members are as provided in section 15.059.  In addition, two 
members of the house of representatives appointed under the 
rules of the house of representatives and two members of the 
senate appointed under the rules of the senate shall serve as 
nonvoting members of the council.  The council shall annually 
elect from its membership a chairperson and other officers it 
deems necessary. 
    Subd. 2.  [DEFINITION.] For the purpose of this section, 
the term Asian-Pacific means a person from any of the countries 
in Asia or the Pacific Islands. 
    Subd. 3.  [DUTIES.] The council shall: 
    (1) advise the governor and the legislature on issues 
confronting Asian-Pacific people in this state, including the 
unique problems of non-English-speaking immigrants and refugees; 
    (2) advise the governor and the legislature of 
administrative and legislative changes necessary to ensure 
Asian-Pacific people access to benefits and services provided to 
people in this state; 
    (3) recommend to the governor and the legislature any 
revisions in the state's affirmative action program and other 
steps that are necessary to eliminate underutilization of 
Asian-Pacific people in the state's work force; 
    (4) recommend to the governor and the legislature 
legislation designed to improve the economic and social 
condition of Asian-Pacific people in this state; 
    (5) serve as a conduit to state government for 
organizations of Asian-Pacific people in the state; 
    (6) serve as a referral agency to assist Asian-Pacific 
people in securing access to state agencies and programs; 
    (7) serve as a liaison with the federal government, local 
government units, and private organizations on matters relating 
to the Asian-Pacific people of this state; 
    (8) perform or contract for the performance of studies 
designed to suggest solutions to the problems of Asian-Pacific 
people in the areas of education, employment, human rights, 
health, housing, social welfare, and other related areas; 
    (9) implement programs designed to solve the problems of 
Asian-Pacific people when authorized by other law; 
    (10) publicize the accomplishments of Asian-Pacific people 
and their contributions to this state; 
     (11) work with other state and federal agencies and 
organizations to develop small business opportunities and 
promote economic development for Asian-Pacific Minnesotans;  
     (12) supervise development of an Asian-Pacific trade 
primer, outlining Asian and Pacific customs, cultural 
traditions, and business practices, including language usage, 
for use by Minnesota's export community; and 
     (13) cooperate with other state and federal agencies and 
organizations to develop improved state trade relations with 
Asian and Pacific countries. 
    Subd.  4.  [REVIEW OF GRANT APPLICATIONS AND BUDGET 
REQUESTS.] State departments and agencies shall consult with the 
council concerning any application for federal money that will 
have its primary effect on Asian-Pacific Minnesotans before 
development of the application.  The council shall advise the 
governor and the commissioner of finance concerning any state 
agency request that will have its primary effect on 
Asian-Pacific Minnesotans. 
    Subd. 5.  [POWERS.] (a) The council may contract in its own 
name but may not accept or receive a loan or incur indebtedness 
except as otherwise provided by law.  Contracts must be approved 
by a majority of the members of the council and executed by the 
chairperson and the executive director.  The council may apply 
for, receive, and expend in its own name grants and gifts of 
money consistent with the powers and duties specified in this 
section. 
    (b) The council shall appoint an executive director who is 
experienced in administrative activities and familiar with the 
problems and needs of Asian-Pacific people.  The council may 
delegate to the executive director any powers and duties under 
this section that do not require council approval.  The 
executive director serves in the unclassified service and may be 
removed at any time by the council.  The executive director 
shall recommend to the council, and the council may appoint, the 
appropriate staff necessary to carry out the duties of the 
council.  All staff members serve in the unclassified service. 
The commissioner of administration shall provide the council 
with necessary administrative services, for which the council 
shall reimburse the commissioner. 
    Subd. 6.  [STATE AGENCY ASSISTANCE.] On the request of the 
council, state agencies shall supply the council with advisory 
staff services on matters relating to the jurisdiction of the 
council.  The council shall cooperate and coordinate its 
activities with other state agencies to the highest possible 
degree. 
    Subd. 7.  [REPORT.] The council shall prepare and 
distribute a report to the governor and legislature by November 
15 of each even-numbered year.  The report shall summarize the 
activities of the council since its last report, list receipts 
and expenditures, identify the major problems and issues 
confronting Asian-Pacific people, and list the specific 
objectives that the council seeks to attain during the next 
biennium. 
    Subd. 8.  [REPEALER.] This section is repealed June 30, 
1988. 
    Sec. 69.  [3C.035] [DRAFTING FOR EXECUTIVE BRANCH.] 
    Subdivision 1.  [DEADLINES.] A department or agency 
intending to urge the legislature to adopt a bill shall deliver 
the drafting request for the bill to the revisor of statutes by 
December 1 before the regular session of the legislature at 
which adoption will be urged.  A commissioner or agency head, 
however, may deliver a drafting request later by certifying to 
the revisor, with supporting facts, that the request is an 
emergency, relates to a matter that could not reasonably have 
been foreseen before December 1, or for which there is other 
reasonable justification for delay.  The completed bill draft, 
in a form ready for introduction, must be delivered by the 
revisor to a senator or representative as directed by the 
department or agency.  If the draft was requested after December 
1, it must be accompanied by a copy of the commissioner's 
certification to the revisor.  
    Subd. 2.  [COSTS.] Agencies shall include in their budgets 
amounts to pay for bill drafting services provided by the 
revisor of statutes.  The revisor shall assess agencies for the 
actual cost of bill drafting services rendered to them on 
requests delivered to the revisor by December 1.  The revisor 
shall assess agencies for 120 percent of the actual cost of bill 
drafting services rendered to them on requests delivered to the 
revisor after December 1.  The revisor shall also assess an 
agency for the actual cost or 120 percent of actual cost, as 
appropriate, for drafting a request that a senator or 
representative submits to the revisor's office on behalf of the 
agency.  The revisor may not assess a department or agency for 
the costs related to drafting affecting an agency if the request 
for drafting originated from within the legislature.  Receipts 
from the assessment must be deposited in the state treasury and 
credited to the revisor's account.  
    Subd. 3.  [RESTRICTIONS ON OUTSIDE DRAFTING.] A department 
or agency may not contract with an attorney, consultant, or 
other person either to provide drafting services to the 
department or agency or to advise on drafting unless the revisor 
determines that special expertise is required for the drafting 
and the expertise is not available from the revisor or the 
revisor's staff.  A department or agency may not request 
legislative staff, other than the revisor of statutes, to 
provide drafting services to the department or agency.  
    Sec. 70.  [3C.055] [ALLOCATION OF EDITING, PUBLICATION, AND 
MISCELLANEOUS COSTS OTHER THAN DRAFTING COSTS; APPROPRIATIONS.] 
    Subdivision 1.  [BUDGET PREPARATION.] In preparing a budget 
for the office of the revisor of statutes, the revisor shall 
allocate to the executive branch the costs of editing and 
publishing Minnesota Rules and its supplement, preparing 
printer's copy for the printing of extracts of statutes and 
rules, editing and publishing a rule drafting guide, editing and 
publishing the copies of Minnesota Statutes, Minnesota Statutes 
supplement, and session laws that are delivered free to 
executive officers and agencies and to county or city libraries 
and the Minnesota historical society, and editing the copies of 
Minnesota Statutes, Minnesota Statutes supplement, and session 
laws that are sold to the public.  The revisor shall allocate to 
the judicial branch the costs of editing and publishing the 
copies of Minnesota Statutes and its supplement, Minnesota Rules 
and its supplement, and session laws that are delivered free to 
the judicial branch.  The revisor shall allocate to the 
legislative branch the costs of all other services not either 
allocated to the other two branches or reimbursed by assessments 
for services or receipts from sales. 
    Subd. 2.  [TRANSFER.] The portion of the revisor's total 
costs allocated to the executive branch and appropriated to the 
department of administration must be transferred on July 1 of 
each year from the department's appropriation to the revisor's 
account.  The portion of the revisor's total costs allocated to 
the judicial branch and appropriated to the supreme court must 
be transferred on July 1 of each year from the court's 
appropriation to the revisor's account.  The portion of the 
revisor's total costs allocated to the legislative branch and 
appropriated to the legislative coordinating commission must be 
transferred on July 1 of each year from the commission's 
appropriation to the revisor's account. 
    Sec. 71.  [3C.056] [DRAFTING COSTS ASSESSMENT.] 
    Those authorized by section 3C.03 to use the the revisor's 
drafting services, other than members of the legislature and 
commissions or committees appointed by the legislature, shall 
pay their proportionate share of the costs of drafting services 
actually furnished them.  The revisor shall calculate and 
allocate costs and bill for drafting services by whatever system 
the revisor determines to be most fair and most practical for 
the revisor and for those being served.  In billing for drafting 
services, the revisor shall use the statewide accounting system 
and the allotment and encumbrance system, but only to the extent 
necessary to facilitate the use of those systems by those being 
billed. 
    Sec. 72.  [3C.057] [REVISOR'S ACCOUNT.] 
    Money received by the revisor from transfers from other 
agencies and receipts from assessments and sales must be 
deposited in the state treasury and credited to a revisor's 
account.  Money in the account is appropriated to the revisor of 
statutes for the operation and maintenance of the revisor's 
office.  This appropriation does not lapse and must not be 
canceled. 
    Sec. 73.  Minnesota Statutes 1984, section 3C.12, 
subdivision 7, is amended to read: 
    Subd. 7.  [SALE PRICE.] The revisor shall fix the sale 
price of an edition of Minnesota Statutes, supplement to 
Minnesota Statutes, or edition of Laws of Minnesota according to 
the limits of this subdivision.  The sale price for an a newly 
published edition of Minnesota Statutes is the actual cost of 
composition, printing, binding, and distribution of all books 
ordered, but not less than $75.  The sale prices of each newly 
published edition of the Laws of Minnesota and supplement to 
Minnesota Statutes are not less than the actual cost of 
composition, printing, binding, and distribution of all books 
ordered, but not less than $10. Revenue from the sale of the 
Minnesota Statutes, supplements to Minnesota Statutes, and Laws 
of Minnesota must be deposited in the general fund revisor's 
account.  
    Sec. 74.  [5.13] [DEPOSIT OF FEES.] 
    Fees collected by the secretary of state must be deposited 
in the state treasury and credited to the special revenue fund. 
    Sec. 75.  [8.15] [ATTORNEY GENERAL COSTS.] 
    The attorney general in consultation with the commissioner 
of finance shall assess executive branch agencies the cost of 
legal services rendered to them.  The assessment against 
appropriations from other than the general fund must be the full 
amount of the cost.  The assessment against appropriations 
supported by fees must be included in the fee calculation.  
Unless appropriations are made for these costs, no payment by 
the agency is required.  The assessment against appropriations 
from the general fund not supported by fees must be one-fourth 
of the cost.  Receipts from assessments must be deposited in the 
state treasury and credited to the general fund. 
    Sec. 76.  Minnesota Statutes 1984, section 11A.07, is 
amended by adding a subdivision to read: 
    Subd. 5.  [APPORTIONMENT OF EXPENSES.] The executive 
director shall apportion the actual expenses incurred by the 
board on an accrual basis among the several funds whose assets 
are invested by the board based on the weighted average assets 
under management during each quarter.  The charge to each 
retirement fund must be calculated, billed, and paid on a 
quarterly basis in accordance with procedures for 
interdepartmental payments established by the commissioner of 
finance.  The amounts necessary to pay these charges are 
appropriated from the investment earnings of each retirement 
fund.  Receipts must be credited to the general fund as 
nondedicated receipts.  Funds other than retirement funds must 
not be billed; their portion of the expenses will be borne by 
the general fund. 
    Sec. 77.  Minnesota Statutes 1984, section 11A.20, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CERTIFICATION OF STATE TREASURY FUNDS NOT 
CURRENTLY NEEDED.] The state treasurer shall make a report to 
the commissioner of finance daily or at other times as the 
commissioner of finance shall determine of the funds in the 
state treasury together with any other information which the 
commissioner may prescribe.  When there are funds in the state 
treasury over and above the amount that the commissioner of 
finance has advised the treasurer is determined are currently 
needed, the state treasurer commissioner shall certify to the 
state board the amount thereof. 
    Sec. 78.  Minnesota Statutes 1984, section 13.68, 
subdivision 1, is amended to read: 
    Subdivision 1.  Energy and financial data, statistics, and 
information furnished to the commissioner of energy and economic 
development by a coal supplier or petroleum supplier, or 
information on individual business customers of a public utility 
pursuant to section 116J.16 or 116J.17, either directly or 
through a federal department or agency are classified as 
nonpublic data as defined by section 13.02, subdivision 9. 
    Sec. 79.  Minnesota Statutes 1984, section 14.07, 
subdivision 1, is amended to read: 
    Subdivision 1.  [RULE DRAFTING ASSISTANCE PROVIDED.] (a) 
The revisor of statutes shall:  
    (1) maintain an agency rules drafting department to draft 
or aid in the drafting of rules or amendments to rules for any 
agency in accordance with subdivision 3 and the objective or 
other instructions which the agency shall give the revisor; and, 
    (2) prepare and publish an agency rules drafting guide 
which shall set out the form and method for drafting rules and 
amendments to rules, and to which all rules shall comply.  
    (b) The revisor shall assess an agency for the actual cost 
of providing aid in drafting rules or amendments to rules.  The 
agency shall pay the assessment using the procedures of section 
71.  Each agency shall include in its budget money to pay the 
revisor's assessment.  Receipts from the assessment must be 
deposited in the state treasury and credited to the revisor's 
account. 
    (c) An agency may not contract with an attorney, 
consultant, or other person either to provide rule drafting 
services to the agency or to advise on drafting unless the 
revisor determines that special expertise is required for the 
drafting and the expertise is not available from the revisor or 
the revisor's staff. 
    Sec. 80.  Minnesota Statutes 1984, section 14.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPROVAL OF FORM.] No agency decision to adopt a 
rule or emergency rule, including a decision to amend or modify 
a proposed rule or proposed emergency rule, shall be effective 
unless the agency has presented the rule to the revisor of 
statutes and the revisor has certified that its form is approved.
The revisor shall assess an agency for the actual cost of 
processing rules for consideration for approval of form.  The 
assessments must include necessary costs to create or modify the 
computer data base of the text of a rule and the cost of putting 
the rule into the form established by the drafting guide 
provided for in subdivision 1.  The agency shall pay the 
assessments using the procedures of section 3C.056.  Each agency 
shall include in its budget money to pay revisor's assessments.  
Receipts from the assessments must be deposited in the state 
treasury and credited to the revisor's account.  
    Sec. 81.  Minnesota Statutes 1984, section 14.08, is 
amended to read: 
    14.08 [REVISOR OF STATUTE'S APPROVAL OF RULE FORM.] 
    (a) Two copies of a rule adopted pursuant to the provisions 
of section 14.26 or 14.32 shall be submitted by the agency to 
the attorney general.  The attorney general shall send one copy 
of the rule to the revisor on the same day as it is submitted by 
the agency under section 14.26 or 14.32.  Within five days after 
receipt of the rule, excluding weekends and holidays, the 
revisor shall either return the rule with a certificate of 
approval of the form of the rule to the attorney general or 
notify the attorney general and the agency that the form of the 
rule will not be approved.  
    If the attorney general disapproves a rule, the agency may 
modify it and the agency shall submit two copies of the modified 
rule to the attorney general who shall send a copy to the 
revisor for approval as to form as described in this paragraph. 
    (b) One copy of a rule adopted after a public hearing shall 
be submitted by the agency to the revisor for approval of the 
form of the rule.  Within five working days after receipt of the 
rule, the revisor shall either return the rule with a 
certificate of approval to the agency or notify the agency that 
the form of the rule will not be approved.  
    (c) If the revisor refuses to approve the form of the rule, 
the revisor's notice shall indicate the reason for the refusal 
and specify the modifications necessary so the form of the rule 
will be approved revise the rule so it is in the correct form.  
    (d) The attorney general and the revisor of statutes shall 
assess an agency for the actual cost of processing rules under 
this section.  The agency shall pay the revisor's assessments 
using the procedures of section 71.  Each agency shall include 
in its budget money to pay the revisor's and the attorney 
general's assessments.  Receipts from the assessment must be 
deposited in the state treasury and credited to the revisor's 
account or the general fund as appropriate. 
    Sec. 82.  Minnesota Statutes 1984, section 14.26, is 
amended to read: 
    14.26 [ADOPTION OF PROPOSED RULE; SUBMISSION TO ATTORNEY 
GENERAL.] 
    If no hearing is required, the agency shall submit to the 
attorney general the proposed rule and notice as published, the 
rule as proposed for adoption, any written comments received by 
the agency, and a statement of need and reasonableness for the 
rule.  The agency shall give notice to all persons who requested 
to be informed that these materials have been submitted to the 
attorney general.  This notice shall be given on the same day 
that the record is submitted.  If the proposed rule has been 
modified, the notice shall state that fact, and shall state that 
a free copy of the proposed rule, as modified, is available upon 
request from the agency.  The rule and these materials shall be 
submitted to the attorney general within 180 days of the day 
that the comment period for the rule is over or the rule is 
automatically withdrawn.  The agency shall report its failure to 
adopt the rules and the reasons for that failure to the 
legislative commission to review administrative rules, other 
appropriate legislative committees, and the governor.  
    Even if the 180-day period expires while the attorney 
general reviews the rule, if the attorney general rejects the 
rule, the agency may resubmit it after taking corrective 
action.  The resubmission must occur within 30 days of when the 
agency receives written notice of the disapproval.  If the rule 
is again disapproved, the rule is withdrawn.  An agency may 
resubmit at any time before the expiration of the 180-day 
period.  If the agency withholds some of the proposed rule, it 
may not adopt the withheld portion without again following the 
procedures of sections 14.14 to 14.28, or 14.29 to 14.36.  
    The attorney general shall approve or disapprove the rule 
as to its legality and its form to the extent the form relates 
to legality, including the issue of substantial change, and 
determine whether the agency has the authority to adopt the rule 
and whether the record demonstrates a rational basis for the 
need for and reasonableness of the proposed rule within 14 
days.  If the rule is approved, the attorney general shall 
promptly file two copies of it in the office of the secretary of 
state.  The secretary of state shall forward one copy of each 
rule to the revisor of statutes.  If the rule is disapproved, 
the attorney general shall state in writing the reasons and make 
recommendations to overcome the deficiencies, and the rule shall 
not be filed in the office of the secretary of state, nor 
published until the deficiencies have been overcome.  The 
attorney general shall send a statement of reasons for 
disapproval of the rule to the agency, the chief administrative 
law judge, the legislative commission to review administrative 
rules, and to the revisor of statutes.  
    The attorney general shall assess an agency for the actual 
cost of processing rules under this section.  Each agency shall 
include in its budget money to pay the attorney general's 
assessment.  Receipts from the assessment must be deposited in 
the state treasury and credited to the general fund. 
    Sec. 83.  Minnesota Statutes 1984, section 14.32, is 
amended to read: 
    14.32 [SUBMISSION OF PROPOSED EMERGENCY RULE TO ATTORNEY 
GENERAL.] 
    Subdivision 1.  [SUBMISSION.] The agency shall submit to 
the attorney general the proposed emergency rule as published, 
with any modifications.  On the same day that it is submitted, 
the agency shall mail notice of the submission to all persons 
who requested to be informed that the proposed emergency rule 
has been submitted to the attorney general.  If the proposed 
emergency rule has been modified, the notice shall state that 
fact, and shall state that a free copy of the proposed emergency 
rule, as modified, is available upon request from the agency.  
The attorney general shall review the proposed emergency rule as 
to its legality, review its form to the extent the form relates 
to legality, and shall approve or disapprove the proposed 
emergency rule and any modifications on the tenth working day 
following the date of receipt of the proposed emergency rule 
from the agency.  The attorney general shall send a statement of 
reasons for disapproval of the rule to the agency, the chief 
administrative law judge, the legislative commission to review 
administrative rules, and to the revisor of statutes. 
    Subd. 2.  [COSTS.] The attorney general shall assess an 
agency for the actual cost of processing rules under this 
section.  Each agency shall include in its budget money to pay 
the attorney general's assessment.  Receipts from the assessment 
must be deposited in the state treasury and credited to the 
general fund. 
    Sec. 84.  Minnesota Statutes 1984, section 14.40, is 
amended to read: 
    14.40 [REVIEW OF RULES BY COMMISSION.] 
    The commission shall promote adequate and proper rules by 
agencies and an understanding upon the part of the public 
respecting them.  The jurisdiction of the commission includes 
all rules as defined in section 14.02, subdivision 4.  The 
commission also has jurisdiction of rules which are filed with 
the secretary of state in accordance with section 14.38, 
subdivisions 5, 6, 7, 8, 9, and 11 or were filed with the 
secretary of state in accordance with the provisions of section 
14.38, subdivisions 5 to 9, which were in effect on the date the 
rules were filed.  It may hold public hearings to investigate 
complaints with respect to rules if it considers the complaints 
meritorious and worthy of attention.  It If the rules that are 
the subject of the public hearing were adopted without a 
rulemaking hearing, it may request the office of administrative 
hearings to hold the public hearing and prepare a report 
summarizing the testimony received at the hearing.  The office 
of administrative hearings shall assess the costs of the public 
hearing to the agency whose rules are the subject of the 
hearing.  The commission may, on the basis of the testimony 
received at the public hearings, suspend any rule complained of 
by the affirmative vote of at least six members provided the 
provisions of section 14.42 have been met.  If any rule is 
suspended, the commission shall as soon as possible place before 
the legislature, at the next year's session, a bill to repeal 
the suspended rule.  If the bill is not enacted in that year's 
session, the rule is effective upon adjournment of the session 
unless the agency has repealed it.  If the bill is enacted, the 
rule is repealed.  The commission shall make a biennial report 
to the legislature and governor of its activities and include 
its recommendations to promote adequate and proper rules and 
public understanding of the rules. 
    Sec. 85.  Minnesota Statutes 1984, section 14.47, 
subdivision 8, is amended to read: 
    Subd. 8.  [SALES AND DISTRIBUTION OF COMPILATION.] Any 
compilation, reissue, or supplement published by the revisor 
shall be sold by the revisor for a reasonable fee and its 
proceeds deposited in the general fund revisor's account.  An 
agency shall purchase from the revisor the number of copies of 
the compilation or supplement needed by the agency.  The revisor 
shall provide one copy of any compilation or supplement to each 
county library maintained pursuant to section 134.12 or 375.33 
upon its request, except in counties containing cities of the 
first class.  If a county has not established a county library 
pursuant to section 134.12 or 375.33, the copy will be provided 
to any public library in the county upon its request. 
    Sec. 86.  Minnesota Statutes 1984, section 14.48, is 
amended to read: 
    14.48 [CREATION OF OFFICE OF ADMINISTRATIVE HEARINGS; CHIEF 
ADMINISTRATIVE LAW JUDGE APPOINTED; OTHER ADMINISTRATIVE LAW 
JUDGES APPOINTED.] 
    A state office of administrative hearings is created.  The 
office shall be under the direction of a chief administrative 
law judge who shall be learned in the law and appointed by the 
governor, with the advice and consent of the senate, for a term 
ending on June 30 of the sixth calendar year after appointment.  
Senate confirmation of the chief administrative law judge shall 
be as provided by section 15.066.  The chief administrative law 
judge shall appoint additional administrative law judges and 
compensation judges to serve in his office as necessary to 
fulfill the duties prescribed in sections 14.48 to 14.56.  The 
chief administrative law judge may delegate to a subordinate 
employee the exercise of a specified statutory power or duty as 
deemed advisable, subject to the control of the chief 
administrative law judge.  Every delegation must be by written 
order filed with the secretary of state.  All administrative law 
judges and compensation judges shall be in the classified 
service except that the chief administrative law judge shall be 
in the unclassified service, but may be removed from his 
position only for cause.  All administrative law judges shall 
have demonstrated knowledge of administrative procedures and 
shall be free of any political or economic association that 
would impair their ability to function officially in a fair and 
objective manner.  All workers' compensation judges shall be 
learned in the law, shall have demonstrated knowledge of 
workers' compensation laws and shall be free of any political or 
economic association that would impair their ability to function 
officially in a fair and objective manner. 
    Sec. 87.  Minnesota Statutes 1984, section 14.51, is 
amended to read: 
    14.51 [PROCEDURAL RULES FOR HEARINGS.] 
    The chief administrative law judge shall adopt rules to 
govern the procedural conduct of all hearings, relating to both 
rule adoption, amendment, suspension or repeal hearings, 
contested case hearings, and workers' compensation hearings, and 
to govern the conduct of voluntary mediation sessions for 
rulemaking and contested cases other than those within the 
jurisdiction of the bureau of mediation services.  Temporary 
rulemaking authority is granted to the chief administrative law 
judge for the purpose of implementing Laws 1981, Chapter 346, 
Sections 2 to 6, 103 to 122, 127 to 135, and 141.  The 
procedural rules for hearings shall be binding upon all agencies 
and shall supersede any other agency procedural rules with which 
they may be in conflict.  The procedural rules for hearings 
shall include in addition to normal procedural matters 
provisions relating to recessing and reconvening new hearings 
when the proposed final rule of an agency is substantially 
different from that which was proposed at the public hearing.  
The procedural rules shall establish a procedure whereby the 
proposed final rule of an agency shall be reviewed by the chief 
administrative law judge to determine whether or not a new 
hearing is required because of substantial changes or failure of 
the agency to meet the requirements of sections 14.13 to 14.18.  
Upon his own initiative or upon written request of an interested 
party, the chief administrative law judge may issue a subpoena 
for the attendance of a witness or the production of books, 
papers, records or other documents as are material to the matter 
being heard.  The subpoenas shall be enforceable through the 
district court in the district in which the subpoena is issued. 
    Sec. 88.  Minnesota Statutes 1984, section 14.55, is 
amended to read: 
    14.55 [CONTRACTS WITH POLITICAL SUBDIVISIONS.] 
    The chief administrative law judge may enter into contracts 
with political subdivisions of the state and such political 
subdivisions of the state may contract with the chief 
administrative law judge for the purpose of providing 
administrative law judges and reporters for administrative 
proceedings or informal dispute resolution.  The contract may 
define the scope of the administrative law judge's duties, which 
may include the preparation of findings, conclusions, or a 
recommendation for action by the political subdivision.  For 
such services there shall be an assessment in the manner 
provided in section 14.53. 
    Sec. 89.  Minnesota Statutes 1984, section 15.0597, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] As used in this section, the 
following terms shall have the meanings given them. 
    (a) "Agency" means (1) a state board, commission, council, 
committee, authority, task force, including an advisory task 
force created under section 15.014 or 15.0593, or other similar 
multi-member agency created by statute and having statewide 
jurisdiction; and (2) the metropolitan council, regional transit 
board, metropolitan airports commission, metropolitan parks and 
open space commission, metropolitan sports facilities 
commission, metropolitan waste control commission, capitol area 
architectural and planning board, and any agency with a regional 
jurisdiction created in this state pursuant to an interstate 
compact. 
    (b) "Vacancy" or "vacant agency position" means (1) a 
vacancy in an existing agency, or (2) a new, unfilled agency 
position; provided that "agency" shall not mean (1) a vacant 
position on an agency composed exclusively of persons employed 
by a political subdivision or another agency, or (2) a vacancy 
to be filled by a person required to have a specific title or 
position. 
    (c) "Secretary" means the secretary of state. 
    Sec. 90.  Minnesota Statutes 1984, section 15.50, 
subdivision 3, is amended to read: 
    Subd. 3.  [ADMINISTRATIVE AND PLANNING EXPENSES.] With the 
exception of the administrative and planning expenses of the 
board for federally funded capital expenditures, the board's 
administrative and planning expenses shall be borne by the state.
If federal money is available for capital expenditures, the 
board's administrative and planning expenses must be reimbursed 
to the state upon receipt of that money.  The expenses of the 
board for competition premiums, land acquisition or improvement 
or any other capital expenditures in or upon properties owned or 
to be owned by the state shall be borne by the state.  The 
expenses of any other public body for such expenditures shall be 
borne by the body concerned.  The city of Saint Paul may expend 
moneys currently in the city of Saint Paul Capitol Approach 
Improvement Fund established by Laws 1945, Chapter 315, and acts 
amendatory thereof for capital improvements contained in the 
city's approved capital improvement budget.  The budget is to be 
adopted in accordance with provisions contained in the city 
charter. 
    Sec. 91.  Minnesota Statutes 1984, section 15A.081, 
subdivision 1, is amended to read: 
    Subdivision 1.  The governor shall set the salary rate 
within the ranges listed below for positions specified in this 
subdivision, upon approval of the legislative commission on 
employee relations and the legislature as provided by section 
43A.18, subdivisions 2 and 5: 
                                                Salary Range 
                                                  Effective 
                                                July 1, 1983 
Commissioner of education;                   $57,500-$70,000 
Commissioner of finance; 
Commissioner of transportation; 
Commissioner of human services; 
Chancellor, community college system; 
Chancellor, state university system; 
Director, vocational technical
  education
Executive director, state board of 
  investment; 
Commissioner of administration;              $50,000-$60,000 
Commissioner of agriculture; 
Commissioner of commerce;
Commissioner of corrections;  
Commissioner of economic security;  
Commissioner of employee relations;  
Commissioner of energy and economic 
  development;  
Commissioner of health;  
Commissioner of labor and industry;  
Commissioner of natural resources;  
Commissioner of revenue;
Commissioner of public safety;  
Chairperson, waste management board 
Chief administrative law judge; office of
  administrative hearings;
Director, pollution control agency;
Director, state planning agency;
Executive director, higher education  
  coordinating board;  
Executive director, housing finance 
  agency;  
Executive director, teacher's 
  retirement association;  
Executive director, state retirement  
  system;
Commissioner of human rights;                $40,000-$52,500
Director, department of public service; 
Commissioner of veterans' affairs; 
Director, bureau of mediation services; 
Commissioner, public utilities commission; 
Member, transportation regulation board; 
Director, zoological gardens. 
    Sec. 92.  Minnesota Statutes 1984, section 15A.081, 
subdivision 7, is amended to read: 
    Subd. 7.  The following salaries are provided for officers 
of metropolitan agencies: 
                           Effective   Effective   
                            July 1      July 1     
                             1983        1984      
Chairman, metropolitan 
  council                   $47,000     50,000 
Chairman, metropolitan 
  airports commission        14,000     16,000 
Chairman, metropolitan 
  transit commission         42,000        -0- 
Chairman, regional
  transit board                 -0-     46,000 
Chairman, metropolitan 
  waste control 
  commission                 18,500     20,000 
    The governor shall set the salary rate within the range set 
forth below for the following part-time position, upon approval 
of the legislative commission on employee relations and the 
legislature as provided by section 43A.18, subdivisions 2 and 5: 
                                                  Effective 
                                                July 1, 1985 
Chair, metropolitan waste control
   commission                                $15,000-$25,000 
    Fringe benefits for unclassified employees of the 
metropolitan waste control commission shall not exceed those 
fringe benefits received by unclassified employees of the 
metropolitan council. 
    Sec. 93.  Minnesota Statutes 1984, section 15A.082, 
subdivision 2, is amended to read: 
    Subd. 2.  [MEMBERSHIP.] The compensation council consists 
of 16 members:  two members of the house of representatives 
appointed by the speaker of the house of representatives; two 
members of the senate appointed by the majority leader of the 
senate; one member of the house of representatives appointed by 
the minority leader of the house of representatives; one member 
of the senate appointed by the minority leader of the senate; 
two nonjudges appointed by the chief justice of the supreme 
court; and one member from each congressional district appointed 
by the governor, of whom no more than four may belong to the 
same political party.  Appointments must be made by October 1.  
The compensation and removal of members appointed by the 
governor or the chief justice shall be as provided in section 
15.059, subdivisions 3 and 4.  The legislative coordinating 
commission shall provide the council with administrative and 
support services.  
    Sec. 94.  Minnesota Statutes 1984, section 15A.082, 
subdivision 3, is amended to read: 
    Subd. 3.  [SUBMISSION OF RECOMMENDATIONS.] By January 1 in 
each odd-numbered year, the compensation council shall submit to 
the speaker of the house of representatives and the president of 
the senate salary recommendations for constitutional officers, 
legislators, justices of the supreme court, and judges of the 
court of appeals, district court, county court, and county 
municipal court.  The recommended salary adjustments must occur 
only once, on the effective date of the plan.  They may not 
include periodic adjustments for each office must be a fixed 
amount per year, to take effect on the first Monday in January 
of the next odd-numbered year, with no more than one adjustment, 
to take effect on January 1 of the year after that.  The salary 
recommendations for legislators, judges, and constitutional 
officers take effect on the first Monday in January of the next 
odd-numbered year, if an appropriation of money to pay the 
recommended salaries is enacted after the recommendations are 
submitted and before their effective date.  Recommendations may 
be expressly modified or rejected by a bill enacted into law.  
The salary recommendations for legislators are subject to 
additional terms that may be adopted according to section 3.099, 
subdivisions 1 and 3. 
    Sec. 95.  Minnesota Statutes 1984, section 16A.055, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIST.] The commissioner shall:  
    (1) exercise the rights, powers, and duties of the office 
receive and record all money paid into the state treasury and 
safely keep it until lawfully paid out; 
    (2) manage the state's financial affairs;  
    (3) keep the state's general account books according to 
generally accepted government accounting principles;  
    (4) keep expenditure and revenue accounts according to 
generally accepted government accounting principles;  
    (5) develop, provide instructions for, prescribe, and 
manage a state uniform accounting system; and 
    (6) provide to the state the expertise to ensure that all 
state funds are accounted for under generally accepted 
government accounting principles.  
    Sec. 96.  Minnesota Statutes 1984, section 16A.123, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCLUSIONS.] The following kinds of employees 
need not be counted in an agency's approved complement: 
    (1) part-time employees;  
    (2) seasonal or intermittent employees as defined by the 
commissioner of employee relations;  
    (3) summer student employees;  
    (4) service employees;  
    (5) preservice trainees in an affirmative action program 
approved by the commissioner of employee relations;  
    (6) CETA employees;  
    (7) repair or construction project employees; 
    (8) employees in the department of military affairs paid 
entirely by federal money.  
    The commissioner must conclude there is a need and 
available money before an agency hires an employee of a kind 
listed in this subdivision. 
    Sec. 97.  Minnesota Statutes 1984, section 16A.127, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STATEWIDE AND AGENCY INDIRECT COSTS.] (a) 
As used in this section and in section 16A.128, "statewide 
indirect costs" means all operating costs incurred by the 
treasurer and all agencies attributable to providing services to 
any other agency except as prohibited by federal law.  These 
operating costs include their proportionate share of costs 
incurred by the legislative and judicial branches. 
    (b) As used in this section, "agency indirect costs" means 
all general support costs within the agency that are not 
directly charged to agency programs. 
    Sec. 98.  Minnesota Statutes 1984, section 16A.127, 
subdivision 3, is amended to read: 
    Subd. 3.  [TRANSFER REIMBURSEMENT.] Under the plan, the 
commissioner shall make and record the transfer reimbursement to 
the general fund of the statewide indirect costs attributable to 
an executive agency's nongeneral fund receipts for the last 
fiscal year.  Unless the commissioner determines that agency 
indirect cost receipts are a reimbursement for general fund 
expenditures, the receipts are appropriated to the agency to pay 
administrative expenses.  However, the commissioner may, for 
reasons of sound financial management, waive the transfer to the 
general fund of the indirect costs reimbursement under this 
subdivision for certain nongeneral fund receipts.  The 
commissioner shall report a waiver all waivers in the next 
statewide indirect cost plan. 
    Sec. 99.  Minnesota Statutes 1984, section 16A.127, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEDERAL SHARE.] The commissioner executive 
agency shall transfer reimburse the general fund for federal 
money received by an executive agency for statewide indirect 
costs to the general fund.  Unless the commissioner determines 
that agency indirect cost receipts are a reimbursement for 
general fund expenditures, the receipts are appropriated to the 
agency to pay administrative expenses.  If less than the entire 
executive agency proposal is federally approved, the 
commissioner may transfer accept reimbursement of less than all 
of the federal receipts.  If no federal funds are approved for 
indirect costs, the executive agency must document that fact to 
the commissioner. 
    Sec. 100.  Minnesota Statutes 1984, section 16A.127, is 
amended by adding a subdivision to read: 
    Subd. 8.  [EXEMPTION.] This section does not apply to the 
community college system, state universities, or the state board 
of vocational technical education. 
    Sec. 101.  Minnesota Statutes 1984, section 16A.128, is 
amended to read: 
    16A.128 [FEE ADJUSTMENTS SETTING.] 
    Subdivision 1.  [APPROVAL.] Fixed Fees for accounts for 
which appropriations are made may not be established or adjusted 
without the approval of the commissioner.  If the fee or fee 
adjustment is required by law to be fixed by rule, the 
commissioner's approval must be in the statement of need and 
reasonableness.  These fees must be reviewed each six months 
fiscal year.  Except as determined by the commissioner, Unless 
the commissioner determines that the fee must be lower, fees 
must be set or fee adjustments must be made so the total fees 
nearly equal the sum of the appropriation for the accounts plus 
the agency's general support costs and, statewide indirect costs 
, and attorney general costs attributable to the fee function. 
    Subd. 2.  [NO RULEMAKING.] The kinds of fees that need not 
be fixed by rule unless specifically required by law are:  
    (1) fees based on actual direct costs of a service;  
    (2) one-time fees;  
    (3) fees that produce insignificant revenues;  
    (4) fees billed within or between state agencies; or 
    (5) fees exempt from commissioner approval.  
    Subd. 2a.  [PROCEDURE.] Other fees not fixed by law must be 
fixed by rule.  The procedure for noncontroversial rules in 
sections 14.21 to 14.28 may be used except that no public 
hearing may need be held unless 20 percent of the persons who 
will be required to pay the fee submit to the agency during the 
30-day period allowed for comment a written request for a public 
hearing on the proposed rule.  The notice of intention to adopt 
the rules must state that no whether a hearing will be held if 
not required.  This procedure may be used only when the total 
fees estimated for the biennium do not exceed the sum of direct 
appropriations, indirect costs, transfers in, and salary 
supplements for that purpose.  A public hearing is required for 
adjustments of to fix fees spent under open appropriations of 
dedicated receipts. 
    Sec. 102.  Minnesota Statutes 1984, section 16A.1281, is 
amended to read: 
    16A.1281 [REPORT ON LOW OR HIGH FEES.] 
    In even-numbered years, Each biennium the commissioner 
shall review fees collected by agencies.  By November 15, The 
commissioner shall report on the fees to the appropriation and 
finance committees not later than the date the governor submits 
the biennial budget to the legislature.  The report must analyze 
the fees that the commissioner believes are will be too low or 
too high in the next biennium for the service provided.  The 
analysis must take into account the cost of collecting the fee. 
    Sec. 103.  Minnesota Statutes 1984, section 16A.275, is 
amended to read: 
    16A.275 [DAILY RECEIPTS DEPOSITED WITH STATE TREASURER.] 
    Except as otherwise provided by law, an agency shall 
deposit receipts totaling $250 or more with the treasurer in the 
state treasury daily.  The depositing agency shall send a report 
to the commissioner on the disposition of receipts since the 
last report.  The treasurer and the commissioner shall credit 
the deposits received during a month to the proper funds not 
later than the first day of the next month. 
    Sec. 104.  [16A.283] [APPROPRIATIONS TO COURTS.] 
    If an appropriation for the courts or for an agency in the 
judicial branch for either fiscal year of a biennium is 
insufficient, the appropriation for the other fiscal year of the 
biennium is available for it. 
    Sec. 105.  Minnesota Statutes 1984, section 16A.40, is 
amended to read: 
    16A.40 [WARRANTS PRINTED, REGISTERED IN NUMERICAL ORDER.] 
    Money must not be paid out of the state treasury except 
upon the warrant of the commissioner.  Warrants must be drawn on 
printed blanks that are in numerical order.  The commissioner 
shall enter, in numerical order in a warrant register, the 
number, amount, date, and payee for every warrant issued. 
    Sec. 106.  Minnesota Statutes 1984, section 16A.42, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPROVAL.] If the claim is approved, the 
commissioner shall complete and sign a warrant in the amount of 
the claim.  The treasurer shall then accept and make the warrant 
negotiable by signing it. 
    Sec. 107.  Minnesota Statutes 1984, section 16A.45, 
subdivision 2, is amended to read: 
    Subd. 2.  [PRESENTMENT OF CANCELED WARRANT.] When a 
canceled warrant is presented for payment it shall be paid by 
the treasurer and charged by the commissioner to the fund 
credited with the amount of the canceled warrant.  
    Sec. 108.  Minnesota Statutes 1984, section 16A.47, is 
amended to read: 
    16A.47 [COMMISSIONER'S DUTIES WITH ACCOUNTS AND DOCUMENTS.] 
    The commissioner shall make and keep in the department's 
office a record of all accounts and documents required by law to 
be returned to or filed with the commissioner.  The commissioner 
shall file and keep all official receipts and vouchers.  The 
commissioner shall keep an account with the treasurer.  The 
commissioner shall charge the treasurer for all money paid into 
the treasury and credit the treasurer for all warrants redeemed 
by the treasurer and returned to the commissioner.  The 
commissioner shall also keep an account for each appropriation, 
showing the disbursements.  The commissioner shall keep other 
accounts needed to show the daily condition of state finances. 
    Sec. 109.  Minnesota Statutes 1984, section 16A.58, is 
amended to read: 
    16A.58 [COMMISSIONER CUSTODIAN OF PAYMENT DOCUMENTS.] 
    The commissioner is the custodian of original documents on 
which money has been or may be paid by the treasurer out of the 
state treasury.  
    Sec. 110.  [16A.625] [SPECIAL REVENUE BALANCE CANCELED.] 
    The unencumbered balance of nondedicated revenue in the 
special revenue fund on June 30 each year must be canceled and 
transferred to the general fund. 
    Sec. 111.  Minnesota Statutes 1984, section 16A.641, 
subdivision 10, is amended to read: 
    Subd. 10.  [APPROPRIATION FROM GENERAL FUND.] There is 
annually appropriated to the state bond fund from the general 
fund the amount that, added to the amount in the state bond fund 
on November 1 each year for state bonds issued by January 1, 
1985, and the amount that added to the amount in the state bond 
fund on December 1 each year for state bonds issued after 
January 1, 1985, is needed to pay the principal of and interest 
on all state bonds due and to become due through July 1 in the 
second ensuing year.  The money appropriated must be available 
in the state bond fund each year before the tax otherwise 
required by the Constitution, article XI, section 7, is levied.  
    Sec. 112.  Minnesota Statutes 1984, section 16A.641, is 
amended by adding a subdivision to read: 
    Subd. 13.  [APPLICATION.] This section applies to all state 
bonds issued after January 1, 1985, notwithstanding other laws 
relating to specific bonding programs. 
    Sec. 113.  Minnesota Statutes 1984, section 16A.672, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY.] The commissioner and treasurer 
may issue, execute, deliver, register, and pay bonds and 
certificates of indebtedness in the form and manner provided in 
this section, when authorized under section 16A.641 or 16A.671.  
    Sec. 114.  Minnesota Statutes 1984, section 16A.672, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPLICATION OF COMMERCIAL CODE.] All bonds and 
certificates are securities under sections 336.8-101 to 
336.8-408.  The commissioner and treasurer may do for the state 
whatever may or must be done under those sections to comply with 
the orders authorizing them.  The bonds or certificates may be 
issued:  
    (1) in one or more denominations;  
    (2) in bearer form, with interest coupons attached; and 
    (3) with provision for registration as to principal only; 
or 
    (4) in fully registered form; and 
    (5) with provision for registration of conversion and 
exchange of forms and denominations, transfer of ownership, and 
replacement of lost or damaged bonds.  
    Sec. 115.  Minnesota Statutes 1984, section 16A.672, 
subdivision 3, is amended to read: 
    Subd. 3.  [PREPARATION AND EXECUTION.] (a) Bonds and 
certificates of indebtedness may be printed or otherwise 
reproduced in the style and form the commissioner prescribes.  
They may state in a general way the purpose for which they are 
issued and the security provided for their payment or may 
incorporate the authorizing order by reference.  
    (b) They must be executed by the commissioner and the 
treasurer under their the commissioner's official seals seal.  
The signatures and seals signature may be a reproduced 
facsimiles facsimile, but no bond or certificate is valid for 
any purpose unless it is manually signed on its face by the 
commissioner or treasurer or by a duly authorized representative 
of a bank or trust company named by the commissioner as an agent 
of the state to authenticate it. 
    Sec. 116.  [16A.85] [MASTER LEASE.] 
    Subdivision 1.  [AUTHORIZATION.] The commissioner of 
administration may determine, in conjunction with the 
commissioner of finance, the personal property needs of the 
various state departments, agencies, boards, and commissions 
that may be economically funded through a master lease program 
and request the commissioner of finance to execute a master 
lease and to authorize the sale and issuance of certificates of 
participation relative to it in an amount sufficient to fund 
these personal property needs.  The commissioner of 
administration may use the proceeds from the sale of the 
certificates of participation to acquire the personal property 
through the appropriate procurement procedure in chapter 16B.  
Money appropriated for the lease or acquisition of this personal 
property is appropriated to the commissioner of finance to pay 
principal and interest coming due on the certificates of 
participation. 
    Subd. 2.  [COVENANTS.] The commissioner of finance may 
covenant in a master lease that the state will abide by the 
terms and provisions that are customary in net lease or 
lease-purchase transactions including, but not limited to, 
covenants providing that the state: 
    (1) will maintain rental interruption, liability, and 
casualty insurance notwithstanding section 15.38; 
     (2) is responsible to the lessor for any public liability 
or property damage claims or costs related to the selection, 
use, or maintenance of the leased equipment, to the extent of 
insurance or self-insurance maintained by the lessee, and for 
costs and expenses incurred by the lessor as a result of any 
default by the lessee; 
    (3) authorizes the lessor to exercise the rights of a 
secured party with respect to the equipment subject to the lease 
in the event of default by the lessee and, in addition, for the 
present recovery of lease rentals due during the current term of 
the lease as liquidated damages. 
    Subd. 3.  [MASTER LEASES NOT DEBT.] The commissioner of 
finance may not enter into a master lease unless the 
commissioner of finance determines that money has been 
appropriated and allotted for the payment of the maximum amount 
of rentals that are payable from state money and that are due or 
to become due during the appropriation period in which the lease 
contract is entered into.  A master lease does not constitute or 
create a general or moral obligation or indebtedness of the 
state in excess of the money from time to time appropriated or 
otherwise available for the payment of rent coming due under the 
lease, and the state has no continuing obligation to appropriate 
money for the payment of rent or other obligations under the 
lease.  Rent due under a master lease during a current lease 
term for which money has been appropriated is a current expense 
of the state. 
     Subd. 4.  [TAX EXEMPTION.] Property subject to a master 
lease is not subject to personal property taxes.  Property 
purchased by a lessor for lease to the state under a valid 
master lease and rent due under the lease are not subject to 
sales tax.  
     Subd. 5.  [INVESTMENT INCOME.] The net income from 
investment of the proceeds of the certificates of participation, 
as estimated by the commissioner of finance, must be credited to 
the fund whose assets will be used to pay off the certificates 
of participation. 
    Sec. 117.  Minnesota Statutes 1984, section 16B.08, 
subdivision 7, is amended to read: 
    Subd. 7.  [SPECIFIC PURCHASES.] (a) The following may be 
purchased without regard to the competitive bidding requirements 
of this chapter:  
    (1) fiber used in the manufacture of binder twine, ply 
twines, and rope at the state correctional facilities; 
    (2) merchandise for resale at state park refectories or 
facility operations;  
    (3) farm and garden products, which may be sold at the 
prevailing market price on the date of the sale;  
    (4) meat for other state institutions from the vocational 
school maintained at Pipestone by Independent School District 
No. 583; and 
    (5) furniture from the Minnesota correctional facility-St. 
Cloud.  
    (b) Supplies, materials, or equipment to be used in the 
operation of a hospital licensed under sections 144.50 to 144.56 
that are purchased under a shared service purchasing arrangement 
whereby more than one hospital purchases supplies, materials, or 
equipment with one or more other hospitals, either through one 
of the hospitals or through another entity, may be purchased 
without regard to the competitive bidding requirements of this 
chapter if the following conditions are met: 
    (1) the hospital's governing authority authorizes the 
arrangement; 
    (2) the shared services purchasing program purchases items 
available from more than one source on the basis of competitive 
bids or competitive quotations of prices; and 
    (3) the arrangement authorizes the hospital's governing 
authority or its representatives to review the purchasing 
procedures to determine compliance with these requirements. 
    Sec. 118.  Minnesota Statutes 1984, section 16B.09, is 
amended by adding a subdivision to read:  
    Subd. 5.  [COOPERATIVE AGREEMENTS.] The commissioner may 
charge a fee to cover the commissioner's administrative expenses 
to government units that have joint or cooperative purchasing 
agreements with the state under section 471.59.  
    Sec. 119.  Minnesota Statutes 1984, section 16B.21, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] The 
commissioner shall submit an annual report pursuant to section 
3.195 to the governor and the legislature with a copy to the 
commissioner of energy and economic development indicating the 
progress being made toward the objectives and goals of sections 
16B.19 to 16B.22 during the preceding fiscal year.  The 
commissioner shall also submit a quarterly report to the small 
business procurement advisory council.  These reports shall 
include the following information:  
    (1) the total dollar value and number of potential 
set-aside awards identified during this period and the 
percentage of total state procurement this figure reflects;  
    (2) the number of small businesses identified by and 
responding to the set-aside program, the total dollar value and 
number of set-aside contracts actually awarded to small 
businesses with appropriate designation as to the total number 
and value of set-aside contracts awarded to each small business, 
and the total number of small businesses that were awarded 
set-aside contracts;  
     (3) the total dollar value and number of set-aside 
contracts awarded to small businesses owned and operated by 
economically or socially disadvantaged persons with appropriate 
designation as to the total number and value of set-aside 
contracts awarded to each small business and to each category of 
economically or socially disadvantaged persons as defined by 
section 645.445 and agency rules, and the percentages of the 
total state procurements the figures of total dollar value and 
the number of set-asides reflect; and 
    (4) for each set-aside or preference contract awarded to a 
small business, the estimated additional cost to the state of 
awarding the contract; and 
    (5) the number of contracts which were designated and set 
aside pursuant to section 16B.19 but which were not awarded to a 
small business, the estimated total dollar value of these 
awards, the lowest offer or bid on each of these awards made by 
the small business, and the price at which these contracts were 
awarded pursuant to the normal procurement procedures.  
    The information required by paragraphs (1) and (2) must be 
presented on a statewide basis and also broken down by 
geographic regions within the state. 
    Sec. 120.  Minnesota Statutes 1984, section 16B.22, as 
amended by Laws 1985, chapter 296, section 7, is amended to read:
    16B.22 [ELIGIBILITY; RULES.] 
    Subdivision 1.  [ELIGIBILITY.] A small business owned and 
operated by socially or economically disadvantaged persons is 
eligible to participate under the requirements of sections 
16B.19 to 16B.22 for a maximum of five years from the date of 
receipt of the first set-aside award and after that period is 
not eligible to participate for another five years.  A small 
business that received its first set-aside award more than five 
years before the effective date of this subdivision is not 
eligible to participate for five years after the effective date 
of this subdivision.  The five-year maximum does not apply to 
sheltered workshops and work activity programs.  
    Subd. 2.  [RULES.] (a) The commissioner shall adopt by rule 
additional standards and procedures for certifying that small 
businesses and small businesses owned and operated by socially 
or economically disadvantaged persons are eligible to 
participate under the requirements of sections 16B.19 to 
16B.22.  The rules shall provide that, except for sheltered 
workshops and work activity programs, certification as a small 
business owned and operated by socially or economically 
disadvantaged persons will be for a maximum of five years from 
the date of receipt of the first set-aside award, and that after 
the expiration of the certification period the business may not 
again be certified for a five-year period.  The commissioner 
shall adopt by rule standards and procedures for hearing appeals 
and grievances and other rules necessary to carry out the duties 
set forth in sections 16B.19 to 16B.22.  
    (b) The commissioner may make rules which exclude or limit 
the participation of nonmanufacturing business, including 
third-party lessors, jobbers, manufacturers' representatives, 
and others from eligibility under sections 16B.19 to 16B.22. 
    Sec. 121.  Minnesota Statutes 1984, section 16B.24, 
subdivision 5, is amended to read:  
    Subd. 5.  [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 
The commissioner may rent out state property, real or personal, 
that is not needed for public use, if the rental is not 
otherwise provided for or prohibited by law.  The property may 
not be rented out for more than two years at a time without the 
approval of the state executive council, and may never be rented 
out for more than 25 years.  
    (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 
trust fund lands, other state lands under the jurisdiction of 
the department of natural resources, lands forfeited for 
delinquent taxes, lands acquired under section 298.22, or lands 
acquired under section 41.56 which are under the jurisdiction of 
the department of agriculture.  
    (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
Chapel, located within the boundaries of Fort Snelling State 
Park, is available for use only on payment of a rental fee.  The 
commissioner shall establish rental fees for both public and 
private use.  The rental fee for private use by an organization 
or individual must reflect the reasonable value of equivalent 
rental space.  Rental fees collected under this section must be 
deposited in the general fund.  
    (d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
shall establish rental rates for all living accommodations 
provided by the state for its employees.  Money collected as 
rent by state agencies pursuant to this paragraph must be 
deposited in the state treasury and credited to the general fund.
    (e) [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
AGENCIES.] The commissioner may lease portions of the state 
owned buildings in the capitol complex, the capitol square 
building, the health building, and the building at 1246 
University Avenue, St. Paul, Minnesota, to state agencies and 
charge rent on the basis of space occupied.  Notwithstanding any 
law to the contrary, all money collected as rent pursuant to the 
terms of this section shall be deposited in the state treasury. 
Money collected as rent to recover the depreciation cost of a 
building built with state dedicated funds shall be credited to 
the dedicated fund which funded the original acquisition or 
construction.  All other money received shall be credited to the 
general services revolving fund.  
    Sec. 122.  Minnesota Statutes 1984, section 16B.29, is 
amended to read: 
    16B.29 [STATE SURPLUS PROPERTY; DISPOSAL.] 
    The commissioner may do any of the following to dispose of 
supplies, materials, and equipment which are surplus, obsolete, 
or unused:  (1) transfer it to or between state agencies; (2) 
transfer it to local government units in Minnesota and charge a 
fee to cover expenses incurred by the commissioner in making the 
property available to these units; or (3) sell it.  The 
commissioner must make proper adjustments in the accounts and 
appropriations of the agencies concerned.  When the commissioner 
sells the supplies, materials and equipment, the proceeds of the 
sale are appropriated to the agency for whose account the sale 
was made, to be used and expended by the agency to purchase 
similar needed supplies, materials and equipment at any time 
during the biennium in which the sale occurred. 
    Sec. 123.  Minnesota Statutes 1984, section 16B.36, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY.] The commissioner may examine, 
investigate, or make a survey of the organization, 
administration, and management of state agencies and 
institutions under their control, and may assist state agencies 
by providing analytical, statistical, and organizational 
development services to them in order to secure greater 
efficiency and economy through reorganization or consolidation 
of agencies or functions and to eliminate duplication of 
function, effort, or activity, so far as possible.  
    Sec. 124.  Minnesota Statutes 1984, section 16B.42, 
subdivision 4, is amended to read: 
    Subd. 4.  [FUNDING.] Appropriations and other funds made 
available to the council for staff, operational expenses, and 
grants must be administered through the department of 
administration.  Revenues derived from royalties, 
reimbursements, or other fees from software programs, systems, 
or technical services arising out of activities funded by 
current or prior state appropriations is must be credited to an 
account in the special revenue fund and are appropriated to the 
council for the purposes enumerated in subdivision 2.  The 
unencumbered balance of an appropriation for grants in the first 
year of a biennium does not cancel but is available for the 
second year of the biennium. 
    Sec. 125.  Minnesota Statutes 1984, section 16B.48, 
subdivision 2, is amended to read:  
    Subd. 2.  [PURPOSE OF FUNDS.] Money in the state treasury 
credited to the general services revolving fund and money which 
is deposited in the fund is appropriated annually to the 
commissioner for the following purposes:  
    (1) to operate a central store and equipment service;  
    (2) to operate a central duplication and printing service;  
    (3) to purchase postage and related items and to refund 
postage deposits as necessary to operate the central mailing 
service;  
    (4) to operate a documents service as prescribed by section 
16B.51; and 
    (5) to provide services for the maintenance, operation, and 
upkeep of buildings and grounds managed by the commissioner of 
administration;  
    (6) to provide analytical, statistical, and organizational 
development services to state agencies; 
    (7) to provide capitol security services through the 
department of public safety; and 
    (8) to perform services for any other agency.  Money shall 
be expended for this purpose only when directed by the 
governor.  The agency receiving the services shall reimburse the 
fund for their cost, and the commissioner shall make the 
appropriate transfers when requested.  The term "services" as 
used in this clause means compensation paid officers and 
employees of the state government; supplies, materials, 
equipment, and other articles and things used by or furnished to 
an agency; and utility services, and other services for the 
maintenance, operation, and upkeep of buildings and offices of 
the state government. 
    Sec. 126.  Minnesota Statutes 1984, section 16B.54, 
subdivision 2, is amended to read: 
    Subd. 2.  [VEHICLES.] (a) [ACQUISITION FROM AGENCY; 
APPROPRIATION.] The commissioner may direct an agency to 
transfer to him a passenger motor vehicle or truck presently 
assigned to it for the central motor pool.  The commissioner 
shall reimburse an agency whose motor vehicles have been paid 
for with funds dedicated by the constitution for a special 
purpose and which are assigned to the central motor pool.  The 
amount of reimbursement for a motor vehicle is its average 
wholesale price as determined from the midwest edition of the 
national automobile dealers association official used car guide. 
     (b) [PURCHASE.] To the extent that funds are available for 
the purpose, the commissioner may purchase or otherwise acquire 
additional passenger motor vehicles and trucks necessary for the 
central motor pool.  The title to all motor vehicles assigned to 
or purchased or acquired for the central motor pool is in the 
name of the department of administration.  
     (c) [TRANSFER AT AGENCY REQUEST.] On the request of an 
agency, the commissioner may transfer to the central motor pool 
any passenger motor vehicle or truck for the purpose of 
disposing of it.  The department or agency transferring the 
vehicle or truck shall be paid for it from the motor pool 
revolving account established by this section in an amount equal 
to two-thirds of the average wholesale price of the vehicle or 
truck as determined from the midwest edition of the National 
Automobile Dealers Association official used car guide. 
    (d) [VEHICLES; MARKING.] The commissioner shall provide for 
the uniform marking of all motor vehicles.  Motor vehicle colors 
must be selected from the regular color chart provided by the 
manufacturer each year.  The commissioner may further provide by 
rule for the use of motor vehicles without uniform coloring or 
marking by the governor, the lieutenant governor, the division 
of criminal apprehension, arson investigators of the division of 
fire marshal in the department of public safety, financial 
institutions division of the department of commerce, and the 
office of the attorney general.  
    Sec. 127.  Minnesota Statutes 1984, section 16B.70, is 
amended to read: 
    16B.70 [SURCHARGE.] 
    Subdivision 1.  [COMPUTATION.] To defray the costs of 
administering sections 16B.59 to 16B.73, a surcharge is imposed 
on all permits issued by municipalities in connection with the 
construction of or addition or alteration to buildings and 
equipment or appurtenances after June 30, 1971, as follows:  
    If the fee for the permit issued is fixed in amount the 
surcharge is equivalent to 1/2 mill (.0005) of the fee or 50 
cents, whichever amount is greater.  For all other permits, the 
surcharge is as follows:  (a) if the valuation of the structure, 
addition, or alteration is $1,000,000 or less, the surcharge is 
equivalent to 1/2 mill (.0005) of the valuation of the 
structure, addition, or alteration; (b) if the valuation is 
greater than $1,000,000, the surcharge is $500 plus two-fifths 
mill (.0004) of the value between $1,000,000 and $2,000,000; (c) 
if the valuation is greater than $2,000,000 the surcharge is 
$900 plus three-tenths mill (.0003) of the value between 
$2,000,000 and $3,000,000; (d) if the valuation is greater than 
$3,000,000 the surcharge is $1,200 plus one-fifth mill (.0002) 
of the value between $3,000,000 and $4,000,000; (e) if the 
valuation is greater than $4,000,000 the surcharge is $1,400 
plus one-tenth mill (.0001) of the value between $4,000,000 and 
$5,000,000; and (f) if the valuation exceeds $5,000,000 the 
surcharge is $1,500 plus one-twentieth mill (.00005) of the 
value which exceeds $5,000,000.  
    By September 1 of each odd-numbered year, the commissioner 
shall rebate to municipalities any money received under this 
section and section 16B.62 in the previous biennium in excess of 
the cost to the building code division and the passenger 
elevator inspector in the department of labor and industry in 
that biennium of carrying out their duties under sections 16B.59 
to 16B.73.  The rebate to each municipality must be in 
proportion to the amount of the surcharges collected by that 
municipality and remitted to the state.  The amount necessary to 
meet the commissioner's rebate obligations under this 
subdivision is appropriated to the commissioner from the general 
special revenue fund.  
    Subd. 2.  [COLLECTION AND REPORTS.] All permit surcharges 
must be collected by each municipality and a portion of them 
remitted to the state.  Each municipality having a population 
greater than 20,000 people shall prepare and submit to the 
commissioner once a month a report of fees and surcharges on 
fees collected during the previous month, but shall retain two 
percent of the surcharges collected to apply against the 
administrative expenses the municipality incurs in collecting 
the surcharges.  All other municipalities shall submit the 
report and surcharges on fees once a quarter, but shall retain 
four percent of the surcharges collected to apply against the 
administrative expenses the municipalities incur in collecting 
the surcharges.  The report, which must be in a form prescribed 
by the commissioner, must be submitted together with a 
remittance covering the surcharges collected by the 15th day 
following the month or quarter in which the surcharges are 
collected.  All surcharges and other fees prescribed by sections 
16B.59 to 16B.71, which are payable to the state, must be paid 
to the commissioner who shall deposit them in the state treasury 
for credit to the general special revenue fund. 
    Sec. 128.  Minnesota Statutes 1984, section 40A.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GOALS.] The goals of this chapter are to:  
    (1) preserve and conserve agricultural land, including 
forest land, for long-term agricultural use in order to protect 
the productive natural resources of the state, maintain the farm 
and farm-related economy of the state, and assure continued 
production of food and timber and other agricultural products 
uses;  
    (2) preserve and conserve soil and water resources; and 
    (3) encourage the orderly development of rural and urban 
land uses.  
    Sec. 129.  Minnesota Statutes 1984, section 40A.02, 
subdivision 3, is amended to read: 
    Subd. 3.  [AGRICULTURAL USE.] "Agricultural use" means the 
production of livestock, dairy animals, dairy products, poultry 
or poultry products, fur bearing animals, horticultural or 
nursery stock, fruit, vegetables, forage, grains, timber, trees, 
or bees and apiary products.  "Agricultural use" also includes 
wetlands, pasture, forest land, wildlife land, and other uses 
that depend on the inherent productivity of the land.  
    Sec. 130.  Minnesota Statutes 1984, section 40A.02, 
subdivision 11, is amended to read: 
    Subd. 11.  [FOREST LAND.] "Forest land" has the meaning 
given in section 88.01, subdivision 7 means land that is at 
least ten percent stocked by trees of any size and capable of 
producing timber, or of exerting an influence on the climate or 
on the water regime; land that the trees described above have 
been removed from to less than ten percent stocking and that has 
not been developed for other use; and afforested areas. 
    Sec. 131.  Minnesota Statutes 1984, section 40A.02, 
subdivision 15, is amended to read: 
    Subd. 15.  [OFFICIAL CONTROLS.] "Official controls" or 
"controls" has the meaning given in section 462.352 394.22, 
subdivision 15 6.  
    Sec. 132.  Minnesota Statutes 1984, section 40A.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [PLANS AND OFFICIAL CONTROLS.] By January July 1, 
1987, each pilot county selected under subdivision 1 shall 
submit to the commissioner and to the regional development 
commission in which it is located, if one exists, a proposed 
agricultural land preservation plan and proposed official 
controls implementing the plan.  The commissioner, in 
consultation with the regional development commission, shall 
review the plan and controls for consistency with the elements 
in this chapter and shall submit written comments to the county 
within 90 days of receipt of the proposal.  The comments must 
include a determination of whether the plan and controls are 
consistent with the elements in this chapter.  The commissioner 
shall notify the county of its determination.  If the 
commissioner determines that the plan and controls are 
consistent, the county shall adopt the controls within 60 days 
of completion of the commissioner's review. 
    Sec. 133.  Minnesota Statutes 1984, section 40A.04, is 
amended to read: 
    40A.04 [STATEWIDE AGRICULTURAL LAND PRESERVATION.] 
    Subdivision 1.  [COUNTIES.] Each county with a completed 
county soil survey, except for counties in After January 1, 
1987, a county located outside of the metropolitan area, may 
submit to the commissioner and to the regional development 
commission in which it is located, if one exists, a proposed 
agricultural land preservation plan and proposed official 
controls implementing the plan.  The remaining counties located 
outside of the metropolitan area may submit a proposed plan and 
proposed controls.  To the extent practicable, submission of the 
proposal must coincide with the completion of the county soil 
survey.  The commissioner, in consultation with the regional 
development commission, shall review the plan and controls for 
consistency with the elements in this chapter and shall submit 
written comments to the county within 90 days of receipt of the 
proposal.  The comments must include a determination of whether 
the plan and controls are consistent with the elements in this 
chapter.  The commissioner shall notify the county of its 
determination.  If the commissioner determines that the plan and 
controls are consistent, the county shall adopt the controls 
within 60 days of completion of the commissioner's review.  If 
the commissioner determines that the plan and controls are not 
consistent, the comments must include the additional elements 
that must be addressed by the county.  The county shall amend 
its plan and controls to include the additional elements and 
adopt the amended controls within 90 days of completion of the 
commissioner's review.  
    Subd. 2.  [NONMETROPOLITAN CITY.] A city that is located 
partially within a county in the metropolitan area but is not 
included in the definition of the metropolitan area may elect to 
be governed by this section.  The city may:  
    (1) request the county outside of the metropolitan area 
where it is partially located to include the city in the 
agricultural land preservation plan and official controls of the 
county, using the joint planning board process under section 
462.3585 394.32; or 
    (2) perform the duties of a county independently under this 
section.  
    If the city does not elect to be governed by this section, 
the city shall may perform the duties of an authority under 
chapter 473H.  
    Sec. 134.  Minnesota Statutes 1984, section 40A.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL.] The plans and official controls 
prepared under this chapter must be adopted in accordance with 
the provisions of chapters 394 or 462 that apply to 
comprehensive plans and official controls and must address the 
elements contained in this section.  
    Sec. 135.  Minnesota Statutes 1984, section 40A.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [PLAN.] A plan must address at least the 
following elements:  
    (1) integration with comprehensive county and municipal 
plans;  
    (2) relationship with shoreland, surface water, and other 
land use management plans; 
    (3) identification of land currently in agricultural use, 
including the type of agricultural use, the relative productive 
value of the land based on the crop equivalent rating, and the 
existing level of investment in buildings and equipment;  
    (4) identification of forest land; 
    (3) (5) identification of areas in which development is 
occurring or is likely to occur during the next 20 years;  
    (4) (6) identification of existing and proposed public 
sanitary sewer and water systems;  
    (5) (7) classification of land suitable for long-term 
agricultural use and its current and future development;  
    (6) (8) determination of present and future housing needs 
representing a variety of price and rental levels and an 
identification of areas adequate to meet the demonstrated or 
projected needs; and 
    (7) (9) a general statement of policy as to how the county 
will achieve the goals of this chapter.  
    Sec. 136.  Minnesota Statutes 1984, section 40A.06, is 
amended to read: 
    40A.06 [CONTESTED CASE HEARINGS; JUDICIAL REVIEW.] 
    If a county or a municipality in the county disputes the 
determination of the commissioner relating to whether the plan 
and controls address the elements under this chapter, the county 
or municipality may request that the commissioner initiate a 
contested case proceeding under chapter 14 within 30 days after 
receiving the determination.  In addition, ten or more eligible 
voters of the county who own real estate within the county may 
request a contested case proceeding.  The commissioner shall 
initiate the proceeding within 30 days after receiving the 
request.  Judicial review of the contested case decision is as 
provided in chapter 14.  
    Sec. 137.  Minnesota Statutes 1984, section 40A.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [RELATIONSHIP TO OTHER LAWS.] Nothing in this 
chapter limits a municipality's power to plan or zone adopt 
official controls under other laws or to adopt official controls 
that are consistent with or more restrictive than those enacted 
by the county.  
    Sec. 138.  Minnesota Statutes 1984, section 40A.07, is 
amended by adding a subdivision to read: 
    Subd. 3.  [CONSISTENCY OF MUNICIPAL PLANS AND CONTROLS WITH 
COUNTY PLAN.] Municipalities shall revise existing plans and 
official controls to conform with the county approved 
agricultural land preservation plan and official controls and 
shall initiate implementation of the revised plans and controls 
within one year after receiving the county approved agricultural 
land preservation plan and controls. 
    Sec. 139.  [40A.071] [AMENDED PLAN AND CONTROLS.] 
    A county or municipality that has adopted a plan and 
official controls under this chapter may amend the plan and 
controls under the initial review procedure contained in section 
40A.04. 
    Sec. 140.  [40A.121] [ANNEXATION PROCEEDINGS.] 
    Subdivision 1.  [ANNEXATION PROHIBITED.] Land within an 
exclusive agricultural use zone that is within a township may 
not be annexed to a municipality under chapter 414, unless the 
Minnesota municipal board finds that either: 
    (1) the owner or the county has initiated termination of 
the zone under section 40A.11; 
    (2) because of size, tax base, population or other relevant 
factors, the township would not be able to provide normal 
governmental functions and services; or 
    (3) the zone would be completely surrounded by lands within 
a municipality. 
    Subd. 2.  [EXCEPTION.] This section does not apply to 
annexation agreements approved by the Minnesota municipal board 
prior to creation of the zone. 
    Sec. 141.  [40A.122] [EMINENT DOMAIN ACTIONS.] 
    Subdivision 1.  [APPLICABILITY.] An agency of the state, a 
public benefit corporation, a local government, or any other 
entity with the power of eminent domain under chapter 117, 
except a public utility as defined in section 216B.02, a 
municipal electric or gas utility, a municipal power agency, a 
cooperative electric association organized under chapter 308, or 
a pipeline operating under the authority of the Natural Gas Act, 
United States Code, title 15, sections 717 to 717z, shall follow 
the procedures in this section before: 
    (1) acquiring land or an easement in land with a total area 
over ten acres within an exclusive agricultural use zone; or 
    (2) advancing a grant, loan, interest subsidy, or other 
funds for the construction of dwellings, commercial or 
industrial facilities, or water or sewer facilities that could 
be used to serve structures in areas that are not for 
agricultural use, that require an acquisition of land or an 
easement in an exclusive agricultural zone. 
    Subd. 2.  [NOTICE OF INTENT.] At least 60 days before an 
action described in subdivision 1, notice of intent must be 
filed with the environmental quality board containing 
information and in the manner and form required by the 
environmental quality board.  The notice of intent must contain 
a report justifying the proposed action, including an evaluation 
of alternatives that would not affect land within an exclusive 
agricultural use zone. 
    Subd. 3.  [REVIEW AND ORDER.] The environmental quality 
board, in consultation with affected local governments, shall 
review the proposed action to determine its effect on the 
preservation and enhancement of agriculture and agricultural 
uses within the zone and the relationship to local and regional 
comprehensive plans.  If the environmental quality board finds 
that the proposed action might have an unreasonable effect on a 
zone, the environmental quality board shall issue an order 
within the 60-day period under subdivision 2 for the party to 
refrain from the proposed action for an additional 60 days.  
    Subd. 4.  [PUBLIC HEARING.] During the additional 60 days, 
the environmental quality board shall hold a public hearing 
concerning the proposed action at a place within the affected 
zone or easily accessible to the zone.  Notice of the hearing 
must be published in a newspaper having a general circulation 
within the area of the zone.  Individual written notice must be 
given to the local governments with jurisdiction over the zone, 
the agency, corporation or government proposing to take the 
action, the owner of land in the zone, and any public agency 
having the power of review or approval of the action. 
    Subd. 5.  [JOINT REVIEW.] The review process required in 
this section may be conducted jointly with any other 
environmental impact review by the environmental quality board. 
    Subd. 6.  [SUSPENSION OF ACTION.] The environmental quality 
board may suspend an eminent domain action for up to one year if 
it determines that the action is contrary to the purposes of 
this chapter and that there are feasible and prudent 
alternatives that may have a less negative impact on a zone. 
    Subd. 7.  [TERMINATION OF ZONE.] Designation as an 
exclusive agricultural use zone and all benefits and limitations 
under this chapter, including the restrictive covenant for the 
portion of the zone taken, ends on the date the final 
certificate is filed with the clerk of district court under 
section 117.205. 
    Subd. 8.  [ACTION BY ATTORNEY GENERAL.] The environmental 
quality board may request the attorney general to bring an 
action to enjoin an agency, corporation or government from 
violating this section. 
    Subd. 9.  [EXCEPTION.] This section does not apply to an 
emergency project that is immediately necessary for the 
protection of life and property. 
    Sec. 142.  [40A.123] [LIMITATION ON CERTAIN PUBLIC 
PROJECTS.] 
    Subdivision 1.  [PROJECTS AND ASSESSMENTS PROHIBITED; 
EXCEPTION.] Notwithstanding any other law, construction projects 
for public sanitary sewer systems, public water systems, and 
public drainage systems are prohibited in exclusive agricultural 
use zones.  New connections between land or buildings in a zone 
and public projects are prohibited.  Land in a zone may not be 
assessed for public projects built in the vicinity of the zone.  
    Subd. 2.  [EXCEPTION; OWNER OPTION.] Subdivision 1 does not 
apply to public projects necessary to serve land primarily in 
agricultural use or if the owner of land in an exclusive 
agricultural use zone elects to use and benefit from a public 
project. 
    Subd. 3.  [RECAPTURE OF DEFERRED ASSESSMENT.] If 
assessments are not levied against property under subdivision 1, 
the local government shall file a certificate with the county 
recorder containing a legal description of the property and the 
amount deferred.  If the property is terminated as an exclusive 
agricultural use zone under section 40A.11, the deferred 
assessments plus interest are payable within 90 days after 
termination of the zone.  If the deferred assessment is not paid 
within 90 days, the county auditor shall include the deferred 
assessment plus a ten percent penalty on the tax list for the 
current year. 
    Sec. 143.  Minnesota Statutes 1984, section 40A.13, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CONSERVATION PRACTICES TO PREVENT SOIL 
LOSS REQUIRED.] An owner of agricultural land in an exclusive 
agricultural use zone shall manage the land with sound soil 
conservation practices that prevent excessive soil loss.  Soil 
loss is excessive if it is greater than the soil loss tolerance 
for each soil type described in the United States soil 
conservation service field office technical guide or if the soil 
loss is greater than the soil loss allowed in an ordinance of 
the county according to the model ordinance adopted by the 
commissioner.  The model ordinance and sections 40.19 to 40.28 
and sections adopted under chapter 40 relating to soil loss 
apply to all land in an exclusive agricultural zone.  A sound 
soil conservation practice prevents excessive soil loss or 
reduces soil loss to the most practicable extent.  The county 
shall enforce this subdivision.  
    Sec. 144.  Minnesota Statutes 1984, section 40A.15, 
subdivision 4, is amended to read: 
    Subd. 4.  [FINANCIAL ASSISTANCE.] The commissioner shall 
administer grants for up to 50 percent of the cost of the 
activity to be funded, except that grants to the pilot counties 
shall be for 100 percent of the cost up to $30,000 of preparing 
new plans and official controls required under this chapter.  
Grants may not be used to reimburse the recipient for activities 
that are already completed.  Grants may be used to employ and 
train staff, contract with other units of government or private 
consultants, and pay other expenses related to promoting and 
implementing agricultural land preservation and conservation 
activities.  The commissioner shall prepare and publish an 
inventory of sources of financial assistance.  To the extent 
practicable, the commissioner shall assist recipients in 
obtaining matching grants from other sources. 
    Sec. 145.  Minnesota Statutes 1984, section 41A.01, is 
amended to read:  
    41A.01 [PURPOSE.] 
    Sections 41A.01 to 41A.06 provide a framework for an 
agricultural resource loan guaranty program, the purposes of 
which are to further the development of the state's agricultural 
resources and improve the market for its agricultural products.  
Public debt is authorized by the constitution to be incurred for 
developing agricultural resources by extending credit on real 
estate security.  The program contemplates the use of this power 
not to finance projects of the kind described herein, but to 
provide financial guaranties for a portion of the cost of viable 
projects to the extent necessary to enable qualified developers 
and operators to secure private financing which would not 
otherwise be available.  All credit advanced pursuant to loan 
guaranty commitments is to be secured by subrogation of the 
state to mortgage security and other security interests granted 
to the private lender, in proportion to the amount advanced by 
the state.  A loan guaranty board is established to investigate 
the feasibility of each project, its conformity to the above 
policies public policy and to environmental standards, the 
qualifications of the owners, operators, and lenders, and the 
nature and extent of the security, prior to commitment, and.  
The board shall also seek to secure maximum financial 
participation by private persons, not supported by the guaranty, 
to assure that in these respects each project satisfies and will 
continue to satisfy criteria which are adequate in the judgment 
of the board.  
    Sec. 146.  Minnesota Statutes 1984, section 41A.02, 
subdivision 5, is amended to read:  
    Subd. 5.  [AGRICULTURAL RESOURCE LOAN GUARANTY PROGRAM; 
PROGRAM.] "Agricultural resource loan guaranty program" or 
"program" includes all projects and, loan guaranties approved 
and bonds approved or issued pursuant to sections 41A.03 and 
41A.04 this chapter. 
    Sec. 147.  Minnesota Statutes 1984, section 41A.02, 
subdivision 7, is amended to read:  
    Subd. 7.  [APPLICANT.] "Applicant" means any borrower or 
lender acting on behalf of a borrower or any rural development 
finance authority organized, or any county exercising the powers 
of such an authority, pursuant to chapter 362A, which applies to 
the state for approval of a guaranty of a loan to a borrower or 
issuance of bonds for a project.  
    Sec. 148.  Minnesota Statutes 1984, section 41A.02, is 
amended by adding a subdivision to read:  
     Subd. 7a.  [BONDS.] "Bonds" means bonds, notes, or other 
obligations issued by the board pursuant to this chapter. 
    Sec. 149.  Minnesota Statutes 1984, section 41A.02, 
subdivision 8, is amended to read:  
    Subd. 8.  [BORROWER.] "Borrower" means any applicant or any 
private individual, company, cooperative, partnership, 
corporation, association, consortium, or other entity organized 
for a common business purpose, which is obligated or to be 
obligated to pay a guaranteed loan or receives a loan of bond 
proceeds. 
    Sec. 150.  Minnesota Statutes 1984, section 41A.02, 
subdivision 11, is amended to read:  
    Subd. 11.  [LENDER.] "Lender" means any holder or holders 
of bonds, notes, or other obligations evidencing a guaranteed 
loan, any trustee representing those holders, and any investment 
or commercial banking institution, savings and loan institution, 
insurance company, investment company, or other financial 
institution or institutional investor making, purchasing, or 
participating in a loan or any part of a loan.  
    Sec. 151.  Minnesota Statutes 1984, section 41A.03, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORITY FOR AND LIMITATION OF GUARANTY.] 
Subject to the provisions of sections 41A.01 to 41A.06 and 
subject to section 16A.80 and upon determination that a loan 
will serve the public purposes and satisfy the conditions set 
forth in sections 41A.01 to 41A.06, the state may guarantee and 
commit to guarantee against loss an amount not exceeding 90 
percent, with exclusive of accrued interest, of a loan for the 
construction cost of an agricultural resource project (or the 
refunding or refinancing of a loan).  The loan must be secured 
by a first mortgage lien the best available collateral including 
but not limited to a mortgage on and security interest in all 
real and personal property comprising the project and other 
collateral as provided in the loan agreement.  
    Sec. 152.  Minnesota Statutes 1984, section 41A.03, 
subdivision 3, is amended to read:  
    Subd. 3.  [REQUIRED PROVISIONS.] A loan guaranty or loan 
agreement pertaining to any loan guaranteed by the state 
must may provide that:  
    (a) Payments of principal and interest made by the borrower 
under the loan shall be applied by the lender to reduce the 
guaranteed and nonguaranteed portion of the loan on a 
proportionate basis, and the nonguaranteed portion shall not in 
any event receive preferential treatment over the guaranteed 
portion.  
    (b) A period of grace shall be allowed of not less than 60 
days from a date a principal or interest payment is due, prior 
to the making of demand for payment pursuant to the loan 
guaranty, to permit adequate time for a decision on behalf of 
the state regarding principal and interest assistance in 
accordance with subdivision 4.  Payment as required by the loan 
guaranty shall be made within 60 days after receipt by the state 
of written demand complying with the terms and conditions of the 
guaranty.  
    (c) The lender may not accelerate repayment of the loan or 
exercise other remedies available to the lender if the borrower 
defaults, unless (i) the borrower fails to pay a required 
payment of principal or interest, or (ii) the state consents in 
writing, or (iii) as otherwise permitted in the loan guaranty. 
In the event of a default, the lender may not make demand for 
payment pursuant to the guaranty unless the state agrees in 
writing that such default has materially affected the rights or 
security of the parties, and finds that the lender should be 
entitled to receive payment pursuant to the loan guaranty.  
    (d) If a payment of principal or interest is made by the 
state upon default of the borrower, the state shall be 
subrogated to the rights of the lender with respect to the 
payment.  
    (e) The borrower shall have promptly prepared and delivered 
to the state annual audited or reviewed financial statements of 
the project prepared by a certified public accountant according 
to generally accepted accounting principles.  
    (f) Duly authorized representatives of the state shall have 
access to the project site at reasonable times during 
construction and operation of the project.  
    (g) The borrower shall maintain adequate records and 
documents concerning the construction and operation of the 
project in order that representatives of the state may determine 
its technical and financial conditions and its compliance with 
environmental requirements.  The records shall include the 
amounts of all sales and use taxes paid on personal property and 
services purchased for the construction and operation of the 
project, with tax receipts furnished by the sellers or other 
supporting documentation determined by the board to be 
satisfactory.  The amounts of those taxes shall be reported to 
the board in the manner and at the times required by the board. 
    (h) The borrower shall protect and preserve at all times 
the project assets and other collateral securing the loan and 
shall assist in liquidation of collateral to minimize loss in 
the event of default.  
    (i) Orderly liquidation of assets of the project shall be 
provided for in the event of default, with an option on the part 
of the state to acquire from the lender the lender's interest in 
the assets pursuant to the nonguaranteed portion of the loan.  
    (j) The state shall be paid at or prior to the closing of 
the guaranteed loan a fee or fees for the loan guaranty or the 
commitment to guarantee the loan.  The aggregate fee may not 
exceed one percent of the total principal amount of the 
guaranteed portion of the loan.  
    (k) The lender shall perfect and maintain the mortgage lien 
on the real estate and the security interest in personal 
property and collateral granted as security for the loan, and 
shall cause all other loan servicing functions to be performed 
which are normally required or performed by a reasonable and 
prudent lender with respect to a loan without a guaranty.  
    (l) The state shall be notified in writing without delay of 
(i) the date and amount of and basis for each disbursement of 
loan proceeds; (ii) any nonpayment of principal or interest due 
(within ten days after the due date and with evidence of 
notification to the borrower); (iii) any failure to honor a 
commitment by any person of an intended source of capital for 
the project; and (iv) any significant adverse changes from 
original cash flow projections as evidenced by reports from the 
borrower, or any other known evidence that the borrower might be 
unable to meet a future scheduled payment of principal or 
interest.  
    (m) The loan agreement shall require the borrower to 
establish a reserve, from the proceeds of the loan or otherwise, 
to be maintained with the lender or with a trustee for the 
holders of the borrower's obligations in cash or securities of a 
specified market value not less than one-half of the annual 
amount which would be required to amortize the entire amount of 
the loan over the term and at the interest rate (or at the rate 
of yield resulting from the interest rates) provided in the loan 
agreement.  
     (n) The agreement shall contain other terms and conditions 
that the board in its sole discretion determines necessary and 
appropriate to carry out the purposes of this chapter.  
    Sec. 153.  Minnesota Statutes 1984, section 41A.03, is 
amended by adding a subdivision to read:  
     Subd. 5.  [LIMITATION ON LIABILITY.] The liability of the 
state for loan guaranties or bonds authorized under this chapter 
is limited to the amount of funds appropriated to the guaranty 
fund pursuant to section 41A.06.  The loan guaranties or bonds 
are not a general obligation or debt of the state.  
    Sec. 154.  Minnesota Statutes 1984, section 41A.04, 
subdivision 1, is amended to read:  
    Subdivision 1.  [REQUIREMENTS.] (a) Any rural development 
finance authority, or county exercising the powers of such an 
authority, applicant may file a written application with the 
state commissioner of finance energy and economic development on 
behalf of the board, to be considered by the agricultural 
resource loan guaranty board, for a guaranty by the state of a 
portion of a loan or for issuance of bonds for an agricultural 
resource project.  In general, the application must provide 
information similar to that required by an investment banking or 
other financial institution considering such a project for debt 
financing. Specifically, each application must include in brief 
but precise form the following information, as supplied by the 
applicant, the borrower, or the lender:  
    (1) a description of the scope, nature, extent, and 
location of the proposed project, including the identity of the 
borrower and a preliminary or conceptual design of the project;  
    (2) a description of the technology to be used in the 
project and the prior construction and operating experience of 
the borrower with such projects;  
    (3) a detailed estimate of the items comprising the total 
cost of the project, including escalation and contingencies, 
with explanation of the assumptions underlying the estimate;  
    (4) a general description of the financial plan for the 
project, including the mortgage and security interests to be 
granted for the security of the guaranteed loan or the bonds, 
and all sources of equity, grants, or contributions or of 
borrowing the repayment of which is not to be secured by the 
mortgage and security interests, or, if so secured, is expressly 
subordinated to the guaranteed loan;  
      (5) an environmental report analyzing potential 
environmental effects of the project, any necessary or proposed 
mitigation measures, and other relevant data available to the 
applicant to enable the board to make an environmental 
assessment;  
      (6) a list of applications to be filed and estimated dates 
of approvals of permits required by federal, state, and local 
government agencies as conditions for construction and 
commencement of operation of the project;  
     (7) an estimated construction schedule;  
      (8) an analysis of the estimated cost of production of and 
market for the product, including economic factors justifying 
the analysis and proposed and actual marketing contracts, 
letters of intent, and contracts for the supply of feedstock;  
      (9) a description of the management experience of the 
borrower in organizing and undertaking similar projects;  
      (10) pro forma cash flow statements for the first five 
years of project operation including income statements and 
balance sheets;  
      (11) a description of the borrower's organization and, 
where applicable, a copy of its articles of incorporation or 
partnership agreement and bylaws;  
    (12) the estimated amount of the loan or bonds and 
percentage of the guaranty requested, the proposed repayment 
schedule, and other terms and conditions and security provisions 
of the loan;  
    (13) an estimate of the amounts and times of receipt of 
guaranty fees, sales and use taxes, property tax increments, and 
any other governmental charges which may be available for the 
support of the state guaranty fund as a result of the 
construction of the project, with an analysis of the assumptions 
on which the estimate is based;  
    (14) a copy of any lending commitment issued by a lender to 
the borrower;  
    (15) a statement from the lender, if identified, as to its 
general experience in financing and servicing debt incurred for 
projects of the size and general type of the project, and its 
proposed servicing and monitoring plan; and 
    (16) additional information required by the board.  
    (b) The applicant shall pay upon filing of the application 
a fee equal to .25 percent of the amount of the loan guaranty or 
bond requested.  The fee shall be paid to the commissioner of 
finance and deposited in the general fund.  If the board 
determines not to issue a commitment for the project, the fee 
shall be refunded to the applicant, less the board's cost of 
processing, reviewing, and evaluating the application.  If the 
board issues a commitment for the project and the application 
fee exceeds the board's cost of processing, reviewing, and 
evaluating the application, the balance shall be transferred 
from the general fund to the project account in the guaranty 
fund and credited against the amount of the commitment fee 
required in section 3, subdivision 3, clause (j).  The county or 
rural development finance authority may require the proposed 
borrower under the project to pay the application fee.  
    (c) If the application is made by an applicant other than 
the county or rural development finance authority and tax 
increment financing is to be used for the project, the 
application must include a copy of a resolution adopted by the 
governing body of the county or rural development finance 
authority in which the project is located.  The resolution must 
authorize the use of tax increment financing for the project as 
required by section 41A.06, subdivision 5. 
    Sec. 155.  Minnesota Statutes 1984, section 41A.04, 
subdivision 3, is amended to read:  
    Subd. 3.  [COMMITMENT.] The board commissioner of energy 
and economic development on behalf of the board shall determine 
as to each project for which an application is submitted whether 
it appears in the board's commissioner's judgment to conform to 
the purposes and policies stated in section 1 to an extent 
measured by criteria which in the board's judgment are 
satisfactory requirements of this chapter.  The board may waive 
any of the application requirements in subdivision 1 if it 
determines in its sole discretion that the waiver of the 
requirements is necessary or appropriate to carry out the 
purposes of this chapter.  The board may not waive the 
requirements of subdivision 1, paragraph (c).  In evaluating 
applications the board shall consider the extent to which the 
public subsidies sought by the applicant under the program would 
provide the project with an unfair advantage in competing with 
other products produced or processed in Minnesota.  It may but 
need not adopt rules setting forth criteria for evaluating 
applications for loan guaranties.  Upon determination by the 
board that a project conforms to the purposes and policies in 
section 1 requirements of this chapter, it may by resolution 
make on behalf of the state a conditional commitment to 
guarantee a portion of the proposed loan or to issue bonds as it 
shall determine determines, not exceeding the limitations set 
forth in section 41A.03.  No action is allowable under section 
116B.03, subdivision 1, with respect to acts of any person 
authorized or required in order to execute the resolution.  The 
commitment is not binding upon the state until and unless the 
following conditions are satisfied.  
    (1) the board has created a project account for the project 
in the guaranty fund and has allocated to the account, from 
funds previously appropriated by the legislature or from the 
proceeds of bonds issued or to be issued for purposes of the 
guaranty fund pursuant to authorization previously enacted by 
the legislature, and not previously allocated to any other 
project account, in an aggregate amount sufficient, with any 
other amount then on hand in the project account, to pay the 
entire guaranteed principal amount of the proposed loan, plus 
interest on that amount for one year.  The bonds authorized by 
the legislature need not be issued until and unless the proceeds 
allocated to a project account must be deposited in the account 
to comply with clause (2) or (3).  
    (2) the board has deposited in the project account bond 
proceeds or other funds in an amount not less than the annual 
amount which would be required to amortize the guaranteed 
portion of the principal of the loan over the term and at the 
interest rate (or at the rate of yield resulting from the 
interest rates) provided in the loan agreement.  
    (3) the board has executed on behalf of the state a final 
loan guaranty instrument in conformity with section 41A.03, 
which binds the state to offer state bonds for sale at the times 
and in the amounts required, with amounts on hand in the project 
account, to pay all amounts to become due and payable under the 
loan guaranty, within the authorization and allocation referred 
to in clause (1), and when sold, to issue the bonds and apply 
the proceeds to make these payments or has issued bonds.  
    Sec. 156.  Minnesota Statutes 1984, section 41A.04, 
subdivision 4, is amended to read:  
    Subd. 4.  [RULE-MAKING AUTHORITY.] In order to effectuate 
the purposes of sections 41A.01 to 41A.07, the board shall adopt 
rules which are subject to the provisions of chapter 14.  The 
board may adopt emergency rules which may be effective until 
December 31, 1985 and permanent rules.  
    Sec. 157.  Minnesota Statutes 1984, section 41A.05, 
subdivision 1, is amended to read:  
    Subdivision 1.  [ESTABLISHMENT OF FUND.] For the purpose of 
developing the state's agricultural resources by extending 
credit on real estate security, the agricultural resource loan 
guaranty fund is established as a special and dedicated fund to 
be held and invested separately from all other funds of the 
state.  All proceeds of state bonds authorized and issued for 
the purposes of money appropriated to the fund, and all guaranty 
fees, retail sales taxes, property tax increments, and other 
money from any source which may be credited to the fund pursuant 
to law or pursuant to the terms of grants, contributions, or 
contracts are appropriated and shall remain available for the 
purposes of the fund until those purposes have been fully 
accomplished.  The board may establish within the guaranty fund 
reserve funds, project accounts, or other restrictions it 
determines necessary or appropriate to carry out the purposes of 
this chapter.  Except as otherwise provided in this section, the 
fund may be used only for paying amounts due under loan 
guaranties and principal and interest assistance contracts 
entered into by the state, pursuant to the agricultural resource 
loan guaranty program.  
    Sec. 158.  Minnesota Statutes 1984, section 41A.05, 
subdivision 2, is amended to read:  
    Subd. 2.  [ISSUANCE OF BONDS.] To provide money 
appropriated to the agricultural resource loan guaranty fund for 
the purposes of the program, when authorized by law and 
requested by the board, the commissioner of finance shall issue 
and sell bonds of the state.  The state irrevocably pledges the 
full faith, credit, and taxing powers of the state to the prompt 
and full payment of these bonds.  The proceeds of the bonds when 
issued, except accrued interest and any premium received upon 
sale, shall be credited to the guaranty fund.  All the bonds 
shall be sold and issued and shall be secured in the manner, 
upon the terms, and with the effect prescribed for state 
building bonds in chapter 16A, and with the security provisions 
set forth in chapter 16A and in article XI, sections 4 to 7 of 
the constitution (a) Subject to section 16A.80, upon application 
pursuant to section 41A.04, the board by resolution may exercise 
the powers of a rural development authority under sections 
362A.01 to 362A.05 and the powers of a municipality under 
chapter 474 for the purposes of providing money to pay the costs 
of a project, including the issuance of bonds and the loan of 
the bond proceeds pursuant to a lease or other agreement.  The 
bonds must be issued, sold, and secured on the terms and 
conditions and in the manner determined by resolution of the 
board.  Sections 16A.80 and 474.23 do not apply to the bonds.  
Notwithstanding subdivision 1, a reserve established for the 
bonds provided by the borrower, including out of bond proceeds, 
may be deposited and held in a separate account in the guaranty 
fund and applied to the last installments of principal or 
interest on the bonds, subject to the reserves being withdrawn 
for any purpose permitted by subdivision 1.  The board may by 
resolution or indenture pledge any or all amounts in the 
guaranty fund, including any reserves and investment income on 
amounts in the fund, to secure the payment of principal and 
interest on any or all series of bonds, upon the terms and 
conditions as provided in the resolution or indenture.  To the 
extent the board deems necessary or desirable to prevent 
interest on bonds from becoming subject to federal income 
taxation, (1) the amounts in the guaranty fund shall be invested 
in obligations or securities with restricted yields and (2) the 
investment income on the amounts are released from the pledge 
securing the bonds or loan guaranty and appropriately applied to 
prevent taxation. 
     (b) Bonds issued pursuant to this chapter are not general 
obligations of the state or the board.  The full faith and 
credit and taxing powers of the state and the board are not and 
may not be pledged for the payment of the bonds.  No person may 
compel the levy of a tax for the payment or compel the 
appropriation of money of the state or the board for the payment 
of the bonds, except as specifically provided in this chapter. 
     (c) The issuance of bonds pursuant to this subdivision is 
subject to sections 474.18 to 474.25.  For purposes of sections 
474.16 to 474.20, the board is a local issuer and may apply for 
allocations of authority to issue private activity obligations 
and may enter into an agreement for the issuance of obligations 
by another issuer. 
    Sec. 159.  Minnesota Statutes 1984, section 41A.05, 
subdivision 3, is amended to read:  
    Subd. 3.  [COVENANT.] In fulfillment of the state's 
covenant with the beneficiary of each loan guaranty executed by 
the board on behalf of the state pursuant to the agricultural 
resource loan guaranty program, in accordance with section 
41A.04, subdivision 3, the state will not limit or alter the 
rights vested in the board to comply with the terms of the loan 
guaranties.  The state agrees not to rescind or cancel any 
authorization of an amount of bonds, or the appropriation of the 
proceeds of bonds for the purposes of the program, which, with 
the sum of the amounts then held in each project account in the 
guaranty fund, would be required, in the event of an immediate 
default on each guaranteed loan, to pay the balance of the 
guaranteed portion of the principal of all guaranteed loans with 
interest accrued and to accrue thereon for one year.  
    Sec. 160.  Minnesota Statutes 1984, section 41A.05, is 
amended by adding a subdivision to read:  
    Subd. 5.  [GUARANTY FUND; REDUCTION.] Amounts in the 
guaranty fund may be transferred to the general fund if the 
remaining amount in the fund exceeds the principal amount and 
one year's interest on the outstanding bonds and the guaranteed 
portion of outstanding guaranteed loans. 
    Sec. 161.  Minnesota Statutes 1984, section 41A.06, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPROPRIATION.] The payments, taxes, and 
governmental charges described in this section which are 
received as a consequence of the undertaking, completion, and 
operation of each agricultural resource loan project for which a 
loan guaranty is made by the state are appropriated to the loan 
guaranty fund.  This appropriation shall not lapse at the close 
of any fiscal year under the provisions of section 16A.28, and 
the receipts from the appropriation shall remain available as 
provided in section 41A.05, subdivision 1.  The state is not 
obligated, however, to continue the appropriation with respect 
to charges not yet collected, except to the extent determined to 
be necessary for compliance with the covenant contained in 
section 41A.05, subdivision 3 terms of the loan guaranty 
agreement.  
    Sec. 162.  Minnesota Statutes 1984, section 41A.06, 
subdivision 5, is amended to read:  
    Subd. 5.  [PROPERTY TAX INCREMENTS.] If tax increment 
financing is to be used for the project, the applicant for a 
loan guaranty or bonds for any project, and the county in which 
the project is situated, shall do all acts and things necessary 
for the computation and segregation of property tax increments 
resulting from the construction of the project in accordance 
with the provisions of section 362A.05, and for the remittance 
to the commissioner of finance, for deposit in the loan guaranty 
fund, of all tax increments received from and after the date of 
the conditional commitment for the loan guaranty.  The board may 
agree to accept a pledge of only a portion of the tax 
increment.  If the project account contains the minimum balance 
required by section 41A.04, subdivision 3 an amount equal to the 
average annual payment of principal and interest on the bonds or 
for the guaranteed portion of a guaranteed loan, the board may 
must annually return the excess tax increment to be distributed 
as provided by section 273.75, subdivision 2, clause (d), until 
the increment has been discharged under the agreement or section 
362A.05.  
    Sec. 163.  [41A.08] [STAFF.] 
    Subject to all other applicable laws governing employees of 
or employment by a department or agency of the state, the 
commissioner of energy and economic development, on behalf of 
the board, may retain or employ the officers, employees, agents, 
contractors, and consultants the commissioner determines 
necessary or appropriate to discharge the functions of the board 
in respect to the agricultural resource loan program.  The 
commissioner shall define their duties and responsibilities. 
    Sec. 164.  Minnesota Statutes 1984, section 43A.04, 
subdivision 3, is amended to read: 
    Subd. 3.  [RULES.] The commissioner shall promulgate rules 
pursuant to the administrative procedure act to implement the 
provisions of chapter 43A which directly affect the rights of or 
processes available to the general public.  The rules shall have 
the force and effect of law and shall include but are not 
limited to: 
    (a) The processes for determining the extent of competition 
for filling vacancies, for recruiting applicants, for conducting 
competitive open examinations, for ranking candidates and 
maintaining competitive open eligible lists, and for 
certification and appointment of eligibles from competitive open 
eligible lists; 
    (b) The process for effecting noncompetitive and qualifying 
appointments; 
    (c) The process for temporary designation of positions in 
the unclassified service and for effecting appointments to the 
unclassified service; 
    (d) A statewide affirmative action program to include 
requirements for agency affirmative action plans, statewide 
policies and procedures, reporting requirements, accountability 
and responsibility of employees in the executive branch, and 
overall objectives of the program; 
    (e) Conditions under which moving and other expenses may be 
authorized and paid prior to appointment to persons who have 
accepted state employment; and 
    (f) Procedures for administration of the code of ethics for 
employees of the executive branch; and 
    (g) Examination procedures for candidates with handicaps as 
described in section 43A.10, subdivision 8. 
    Sec. 165.  Minnesota Statutes 1984, section 43A.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [JOB CLASSES AND TITLES.] An appointing authority 
shall notify the commissioner when a new position is to be 
established in the classified service.  The commissioner shall 
allocate the position to an appropriate class in the 
classification plan or if the position cannot be allocated to an 
existing class, establish a new class.  The commissioner shall 
assign an appropriate salary rate or range to the class.  If the 
class is in a bargaining unit under the provisions of section 
179A.10, and there is an applicable provision in the collective 
bargaining agreement the commissioner shall establish the salary 
rate or range pursuant to the agreement.  
    The commissioner may independently conduct classification 
studies or, upon request of an appointing authority or a 
permanent employee, shall may investigate the duties of a 
classified position.  If a request is denied, the employee must 
be given a written explanation.  The commissioner shall 
investigate the duties of a classified position upon request of 
an appointing authority.  The commissioner may reclassify the 
position, change the title of the position or establish a new 
class.  The commissioner shall assign an appropriate salary rate 
or range to the class.  If the class is in a collective 
bargaining unit under the provisions of section 179A.10, and 
there is an applicable provision in the collective bargaining 
agreement, the commissioner shall establish the salary rate or 
range pursuant to the agreement. 
    Sec. 166.  Minnesota Statutes 1984, section 43A.08, 
subdivision 1, is amended to read:  
    Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
positions are held by employees who are: 
    (a) Chosen by election or appointed to fill an elective 
office; 
    (b) Heads of agencies required by law to be appointed by 
the governor or other elective officers, and the executive or 
administrative heads of departments, bureaus, divisions and 
institutions specifically established by law in the unclassified 
service; 
    (c) Deputy and assistant agency heads, and one confidential 
secretary in the agencies listed in subdivision 1a;  
    (d) The confidential secretary to each of the elective 
officers of this state and, for the secretary of state, state 
auditor, and state treasurer, an additional deputy, clerk, or 
employee; 
    (e) Intermittent help employed by the commissioner of 
public safety to assist in the issuance of vehicle licenses; 
    (f) Employees in the offices of the governor and of the 
lieutenant governor, and one confidential employee for the 
governor in the office of the adjutant general; 
    (g) Employees of the legislature and of legislative 
committees or commissions; provided that employees of the 
legislative audit commission, except for the legislative 
auditor, the deputy legislative auditors, and their confidential 
secretaries, shall be employees in the classified service; 
    (h) Presidents, vice presidents, deans, other managers and 
professionals in academic and academic support programs, 
administrative or service faculty, teachers, research assistants 
and student employees eligible under terms of the federal 
economic opportunity act work study program in the state 
universities and community colleges.  This paragraph shall not 
be construed to include the custodial, clerical or maintenance 
employees, or any professional or managerial employee performing 
duties in connection with the business administration of these 
institutions. 
    (i) Officers and enlisted persons in the national guard; 
    (j) Attorneys, legal assistants, examiners, and three 
confidential employees appointed by the attorney general or 
employed with his authorization; 
    (k) Judges and all employees of the judicial branch, 
referees, receivers, jurors, and notaries public, except 
referees and adjusters employed by the department of labor and 
industry; 
    (l) Members of the state patrol; provided that selection 
and appointment of state patrol troopers shall be made in 
accordance with applicable laws governing the classified service;
    (m) Seasonal help employed by the department of revenue; 
    (n) Chaplains employed by the state; 
    (o) (n) Examination monitors and intermittent training 
instructors employed by the departments of employee relations 
and commerce; 
    (p) (o) Student workers; and 
    (q) (p) Employees unclassified pursuant to other statutory 
authority. 
    Sec. 167.  Minnesota Statutes 1984, section 43A.10, 
subdivision 8, is amended to read: 
    Subd. 8.  [ELIGIBILITY FOR QUALIFIED HANDICAPPED 
EXAMINATIONS.] The commissioner shall establish examination 
procedures for candidates whose handicaps are of such a severe 
nature that the candidates are unable to demonstrate their 
abilities in competitive examination processes.  The examination 
procedures shall consist of up to 700 hours on-the-job trial 
work experience which will be in lieu of a competitive 
examination and for which the disabled person will be paid or 
unpaid at his or her option.  This work experience shall be 
limited to candidates for appointment, promotion, or transfer 
who have a physical or mental impairment for which there is no 
reasonable accommodation in the examination process.  
Implementation of provisions of this subdivision shall not be 
deemed a violation of other provisions of Laws 1981, chapter 210 
or chapter 363. 
    Sec. 168.  Minnesota Statutes 1984, section 43A.15, is 
amended by adding a subdivision to read: 
    Subd. 13.  [REVENUE SEASONAL EMPLOYEES.] The commissioner 
may authorize the administration of a qualifying selection 
process for the filling of seasonal positions in the department 
of revenue used in the processing of returns and providing 
information during the tax season.  The commissioner of revenue 
may consider any candidate found qualified through this process 
for probationary appointment. 
    Sec. 169.  [TRANSITION FOR CURRENT EMPLOYEES.] 
    The commissioner of revenue shall appoint to the classified 
service, without a probationary period, people who were seasonal 
employees of the department of revenue on April 15, 1985, who 
have worked a total of at least six months for the department 
since January 1, 1982.  The commissioner shall appoint to the 
classified service, with a probationary period, people who were 
seasonal employees of the department of revenue on April 15, 
1985, who have not worked a total of six months for the 
department since January 1, 1982. 
    Sec. 170.  Minnesota Statutes 1984, section 43A.18, 
subdivision 5, is amended to read: 
    Subd. 5.  [GOVERNOR TO RECOMMEND CERTAIN SALARIES.] The 
governor shall, on or before July 1 of each odd numbered year, 
submit to the legislative commission on employee relations 
recommendations for salaries within the salary range for the 
positions listed in section 15A.081, subdivision subdivisions 1 
and 7.  The governor may also propose additions or deletions of 
positions from those listed.  
    (a) Before submitting the recommendations, the governor 
shall consult with the commissioner of administration, the 
commissioner of finance, and the commissioner of employee 
relations concerning the recommendations.  
    (b) In making recommendations, the governor shall consider 
only those criteria established in subdivision 8 and shall not 
take into account performance of individual incumbents.  The 
governor shall establish an objective system for quantifying 
knowledge, abilities, duties, responsibilities and 
accountabilities and in determining recommendations rate each 
position by this system.  
    (c) Before the governor's recommended salaries take effect, 
the recommendations shall be reviewed and approved, rejected or 
modified by the legislative commission on employee relations and 
the legislature in the same manner as provided for the 
commissioner's plan in subdivision 2.  The governor may also at 
any time propose changes in the salary rate of any positions 
covered by this subdivision, which shall be submitted and 
approved in the same manner as provided in this subdivision.  
    (d) The initial salary of a head of an agency or a chair of 
a metropolitan board or commission hereafter established whose 
salary is not specifically prescribed by law shall be fixed by 
the governor, after consultation with the commissioner, whose 
recommendation shall be advisory only, in an amount comparable 
to the salary of an agency head or commission chair having 
similar duties and responsibilities. 
    Sec. 171.  Minnesota Statutes 1984, section 43A.19, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STATEWIDE AFFIRMATIVE ACTION PROGRAM.] (a) 
To assure that positions in the executive branch of the civil 
service are equally accessible to all qualified persons, and to 
eliminate the underutilization of qualified members of protected 
groups, the commissioner shall adopt and periodically revise, if 
necessary, a statewide affirmative action program.  The 
statewide affirmative action program shall consist of at least 
the following: 
    (a) (1) objectives, long-range and interim goals and 
policies; 
    (b) (2) procedures, standards and assumptions to be used by 
agencies in the preparation of agency affirmative action plans, 
including methods by which goals and timetables shall be 
established; and 
    (c) (3) requirements for the periodic annual submission of 
affirmative action progress reports from heads of agencies. 
    (b) The commissioner shall base interim goals on at least 
the following factors: 
    (1) the percentage of members of each protected class in 
the recruiting area population who have the necessary skills; 
    (2) the availability for promotion or transfer of members 
of protected classes in the recruiting area population; 
    (3) the extent of unemployment of members of protected 
classes in the recruiting area population; 
    (4) the existence of training programs in needed skill 
areas offered by employing agencies and other institutions; and 
    (5) the expected number of available positions to be filled.
    (c) The commissioner shall designate a state director of 
equal employment opportunity who may be delegated the 
preparation, revision, implementation and administration of the 
program.  The commissioner of employee relations may place the 
director's position in the unclassified service if the position 
meets the criteria established in section 43A.08, subdivision 1a.
    Sec. 172.  [43A.191] [AGENCY AFFIRMATIVE ACTION PROGRAMS.] 
    Subdivision 1.  [AFFIRMATIVE ACTION OFFICERS.] (a) Each 
agency with an approved complement over 1,000 shall have at 
least one affirmative action officer, who shall have primary 
responsibility for developing and maintaining the agency's 
affirmative action plan.  The officer shall devote full time to 
affirmative action activities.  The affirmative action officer 
shall report administratively and on policy issues directly to 
the agency head. 
    (b) The commissioner shall assign affirmative action 
officers for agencies with approved complements of less than 
1,000.  
    Subd. 2.  [AGENCY AFFIRMATIVE ACTION PLANS.] (a) The head 
of each agency in the executive branch shall prepare and 
implement an agency affirmative action plan consistent with this 
section and rules issued under section 43A.04, subdivision 3. 
    (b) The agency plan must include a plan for the provision 
of reasonable accommodation in the hiring and promotion of 
qualified handicapped persons.  The reasonable accommodation 
plan shall consist of at least the following:  
    (1) procedures for compliance with section 363.03 and, 
where appropriate, regulations implementing United States Code, 
title 29, section 794, as amended through December 31, 1984, 
which is section 504 of the Rehabilitation Act of 1973, as 
amended; 
    (2) methods and procedures for providing reasonable 
accommodation for handicapped job applicants, current employees, 
and employees seeking promotion; and 
    (3) provisions for funding reasonable accommodations. 
    (c) The agency plan must be prepared by the agency head 
with the assistance of the agency affirmative action officer and 
the director of equal employment opportunity.  The council for 
the handicapped shall provide assistance with the agency 
reasonable accommodation plan. 
    (d) An agency affirmative action plan may not be 
implemented without the commissioner's approval. 
    Subd. 3.  [SANCTIONS AND INCENTIVES.] (a) The director of 
equal employment opportunity shall annually audit the record of 
each agency to determine the rate of compliance with annual 
hiring goals of each goal unit and to evaluate the agency's 
overall progress toward its affirmative action goals and 
objectives.  
    (b) By January 1 of each year, the commissioner shall 
submit a report on affirmative action progress of each agency 
and the state as a whole to the governor and to the finance 
committee of the senate, the appropriations committee of the 
house of representatives, and the governmental operations 
committees of both houses of the legislature.  The report must 
include each agency's rate of compliance with annual hiring 
goals.  Any agency in which less than 75 percent of the interim 
hiring goals in any goal unit were unmet must be designated in 
the report as an agency not in compliance with affirmative 
action requirements. 
    (c) The commissioner shall study methods to improve the 
performance of agencies not in compliance with affirmative 
action requirements.  By January 15, 1986, the commissioner 
shall submit to the legislature a proposal for improving 
compliance rates.  This proposal must include penalties for 
noncompliance. 
    (d) The commissioner shall establish a program to recognize 
agencies that have made significant and measurable progress 
toward achieving affirmative action objectives. 
    Sec. 173.  [43A.192] [TRANSITION.] 
    An agency that has a majority of its approved staff 
complement assigned to campuses or institutions separate from 
its administrative offices and that is not in compliance with 
section 172, subdivision 1, on January 1, 1985, shall come into 
compliance by July 1, 1987.  Until it comes into compliance, the 
agency shall provide the equivalent of one full-time affirmative 
action officer by assigning part-time affirmative action duties 
to employees on each campus or at each institution. 
    Sec. 174.  Minnesota Statutes 1984, section 43A.30, 
subdivision 4, is amended to read: 
    Subd. 4.  [EMPLOYEE INSURANCE TRUST FUND.] The commissioner 
of employee relations may direct that all or a part of the 
amounts paid for life insurance and, hospital, medical, and 
dental benefits coverage, and optional coverages authorized for 
eligible employees and other eligible persons be deposited by 
the state in a separate an employee insurance trust fund in the 
state treasury, from which the approved claims of eligibles are 
to be paid.  Investment income and investment losses 
attributable to the investment of the separate fund shall be 
credited to the fund.  There is appropriated from the separate 
fund to the commissioner of finance amounts needed to pay the 
approved claims of eligibles, related service charges, insurance 
premiums, and refunds.  The commissioner shall not market or 
self-insure life insurance or optional coverages.  
    Sec. 175.  Minnesota Statutes 1984, section 43A.30, is 
amended by adding a subdivision to read: 
     Subd. 5.  [ADMINISTRATION.] The commissioner of employee 
relations may administer the employee insurance program.  The 
commissioner may assess agencies the cost of these 
administrative services and include it in the amounts billed for 
life insurance, hospital, medical, and dental benefits, and 
optional coverages authorized.  Receipts from the assessments 
must be deposited in the state treasury and credited to a 
special account in the employee insurance trust fund and are 
appropriated to the commissioner to pay these administrative 
costs. 
    Sec. 176.  Minnesota Statutes 1984, section 46.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [CONFIDENTIAL RECORDS.] The commissioner shall 
divulge facts and information obtained in the course of 
examining financial institutions under his supervision only when 
and to the extent that he is required or permitted by law to 
report upon or take special action regarding the affairs of an 
institution, or ordered by a court of law to testify or produce 
evidence in a civil or criminal proceeding or in a court of 
justice, except that he may, in his discretion, furnish 
information as to matters of mutual interest to an official or 
examiner of the federal reserve system, the federal deposit 
insurance corporation, the federal savings and loan insurance 
corporation, the national credit union administration, a legally 
constituted state credit union share insurance corporation 
approved under section 52.24, or the issuer of a commitment for 
insurance or guarantee of the certificates of an industrial loan 
and thrift company approved under section 53.10, or state and 
federal law enforcement agencies.  The commissioner shall not be 
required to disclose the name of a debtor of a financial 
institution under his supervision, or anything relative to the 
private accounts, ownership, or transactions of an institution, 
or any fact obtained in the course of an examination thereof, 
except as herein provided.  For purposes of this subdivision, a 
subpoena is not an order of a court of law.  These records are 
classified confidential or protected nonpublic for purposes of 
the Minnesota government data practices act and their 
destruction, as prescribed in section 46.21, is exempt from the 
provisions of chapter 138 and Laws 1971, chapter 529, so far as 
their deposit with the state archives.  
    Sec. 177.  Minnesota Statutes 1984, section 46.07, is 
amended by adding a subdivision to read: 
     Subd. 3.  [COMPLAINT FILES.] Notwithstanding the provisions 
of subdivision 2 to the contrary, data gathered and maintained 
in relation to a complaint filed with the commissioner is 
private or nonpublic pursuant to the Minnesota government data 
practices act. 
    Sec. 178.  Minnesota Statutes 1984, section 47.015, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FINANCIAL INSTITUTIONS.] As used in this 
section the term "financial institution" shall include banks, 
trust companies, banks and trust companies, mutual savings 
banks, industrial loan and thrift companies having outstanding 
certificates of indebtedness for investment other than those 
pledged as security for a loan made contemporaneous therewith, 
savings and loan associations, building and loan associations, 
national banking associations, federal reserve banks and federal 
savings and loan associations doing business in this state, and 
includes any branch or detached facility of any of them. 
    Sec. 179.  Minnesota Statutes 1984, section 47.0151, 
subdivision 3, is amended to read: 
    Subd. 3.  "Financial institution" includes a bank, a 
savings bank, a trust company, any branch or agency of a foreign 
banking organization, a person or association of persons 
lawfully carrying on the business of banking, a savings and loan 
association, and, so far as the provisions of sections 47.0151 
to 47.0155 are consistent with federal law, national banks and 
federal savings and loan associations, and includes any branch 
or detached facility of any of them. 
    Sec. 180.  Minnesota Statutes 1984, section 47.0152, is 
amended to read:  
    47.0152 [POWER OF COMMISSIONER.] 
    Whenever the commissioner is of the opinion that an 
emergency exists, or is impending, in the state or in a part of 
it, he may, by proclamation, authorize financial institutions 
located in the affected area to close any or all of their 
offices.  In addition, if the commissioner is of the opinion 
that an emergency exists, or is impending, which affects, or may 
affect, a particular financial institution or a particular 
office of it, but not financial institutions located in the area 
generally, he may authorize the particular financial institution 
or office affected, to close or to temporarily relocate.  The 
office closed shall remain closed until the commissioner 
proclaims that the emergency has ended, or until an earlier time 
when the officers of the financial institution determine that an 
office, closed because of the emergency, should reopen, and, in 
either event, for the further time reasonably necessary to 
reopen.  The provisions of section 47.101 shall be waived for a 
temporary location established due to an emergency.  
    Sec. 181.  [47.0156] [CLOSING EFFECTING A PERMANENT 
CESSATION OF BUSINESS.] 
    The permanent closing of a financial institution as defined 
in section 47.015 or 47.0151 for purposes, or with a result, 
other than authorized in sections 47.015 to 47.0155 is unlawful 
unless at least 60 days' written notice is given to the 
commissioner. 
    Sec. 182.  Minnesota Statutes 1984, section 48.13, is 
amended to read: 
    48.13 [CONDITIONS OF BONDS.] 
    Subdivision 1.  [SECURITIES.] If a bond is given, it shall 
be in favor of the bank and shall have one corporate surety, 
which shall be a solvent insurance corporation in good standing 
authorized to do business in Minnesota, or at least five 
individual sureties, not one of whom shall be an officer, 
director, or stockholder of the bank, and each of whom shall 
justify in a sum equal to the penalty of the bond and, in 
addition thereto, each individual surety shall furnish to the 
bank, in connection with the bond, a verified financial 
statement showing his solvency and responsibility, which 
statement shall be renewed and revised annually by each surety.  
If a contract of insurance is secured, it shall be in favor of 
the bank and shall be executed by some insurance company 
possessing the qualifications heretofore specified.  No 
cancellation or termination at the request of the underwriter of 
a bond or contract of insurance required by section 48.12 shall 
be effective unless the underwriter gives in advance at least 60 
days written notice by registered mail to the commissioner of 
commerce.  
    Subd. 2.  [SECURITIES IN LIEU OF BOND.] With the prior 
written approval of the commissioner and in lieu of the 
corporate surety or five individual sureties, there may be 
posted a deposit in securities of a form and amount acceptable 
to the commissioner.  These funds are under the control of the 
commissioner for the purposes of section 48.12.  All deposits 
must remain in the custody of the commissioner of finance and 
pursuant to sections 7.19 and 46.15 may be released only upon 
order from the commissioner.  These control and custody 
requirements must not prevent any interest or dividend earnings 
accruing on the funds posted to be paid over to pledgor. 
    Sec. 183.  Minnesota Statutes 1984, section 49.05, is 
amended by adding a subdivision to read: 
    Subd. 5.  [FEDERAL DEPOSIT INSURANCE CORPORATION AS 
RECEIVER OR LIQUIDATOR.] The Federal Deposit Insurance 
Corporation created by Section 12B of the Federal Reserve Act, 
as amended, upon appointment by the commissioner, may act 
without bond as receiver or liquidator of a financial 
institution, the deposits in which are to any extent insured by 
this corporation, and that has been closed pursuant to section 
49.04, subdivision 1. 
    Notwithstanding any other provision of law the appropriate 
state authority having the right to appoint a receiver or 
liquidator of a financial institution may, in the event of the 
closing, tender to the corporation the appointment as receiver 
or liquidator of the financial institution; and, if the 
corporation accepts the appointment, the corporation shall have 
and possess all the powers and privileges provided by the laws 
of this state with respect to a receiver or liquidator, 
respectively, of a financial institution, its depositors, and 
other creditors.  
    Sec. 184.  Minnesota Statutes 1984, section 49.05, is 
amended by adding a subdivision to read: 
    Subd. 6.  [RIGHT OF SUBROGATION.] When a financial 
institution has been closed, and the federal deposit insurance 
corporation has paid or made available for payment the insured 
deposit liabilities of the closed institution, the corporation, 
whether or not it has or shall thereafter become a liquidating 
agent of the closed institution is subrogated, by operation of 
law with like force and effect as if the closed institution were 
a national bank, to all rights of the owners of these deposits 
against the closed financial institution in the same manner and 
to the same extent as now or hereafter necessary to enable the 
federal deposit insurance corporation under federal law to make 
insurance payments available to depositors of closed insured 
financial institutions; provided, that the rights of depositors 
and other creditors of the closed institution shall be 
determined in accordance with the laws of this state.  The 
commissioner may, in the event of the closing of any financial 
institution pursuant to section 49.04, subdivision 1, the 
deposits of which financial institution are to any extent 
insured by the corporation, tender to the corporation the 
appointment as liquidating agent of this financial institution 
and, if the corporation accepts the appointment, it shall have 
and possess all the powers and privileges provided by the laws 
of this state with respect to a special deputy examiner of the 
department of commerce in the management and liquidation of this 
institution, and be subject to all of the duties of the special 
deputy examiner; provided, that nothing contained in this 
subdivision shall be construed as a surrender of the right of 
the commissioner to liquidate financial institutions under his 
or her supervision pursuant to the statute in such case made and 
provided; and the commissioner may waive the filing of a bond by 
the corporation as the special deputy examiner. 
    Sec. 185.  Minnesota Statutes 1984, section 52.02, 
subdivision 3, is amended to read: 
    Subd. 3.  [APPROVAL.] Amendments to the certificate of 
organization or bylaws must be approved by the commissioner of 
commerce before they become operative.  The commissioner shall 
not unreasonably withhold approval if the amendments do not 
violate any provision of this chapter or other state law.  In 
any event, the commissioner shall approve or disapprove the 
proposed amendment within 60 days of the date the proposed 
amendment is submitted to the commissioner by the credit union.  
In case of disapproval the credit union shall have the right to 
appeal to a court of competent jurisdiction within the time 
limits stated in section 52.01, clause (5).  In case any 
amendment to the certificate of organization is adopted, the 
resolution, containing a full text of the amendment and verified 
by its president and or treasurer and approved by the 
commissioner of commerce, shall be recorded in the office of the 
county recorder in the county in which the credit union is 
located.  If the amendment proposes to change the place of 
business from one county to another, it shall be recorded in the 
office of the county recorder of the county of the place of 
business immediately prior to the amendment and a certified copy 
of the original certificate of organization and all amendments 
to it shall be recorded in the office of the county recorder in 
the county in which the credit union desires to do 
business secretary of state. 
    Sec. 186.  Minnesota Statutes 1984, section 52.24, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INSURANCE ACCOUNTS.] Every credit union 
under the supervision of the commissioner of commerce shall at 
all times maintain in effect insurance of member share and 
deposit accounts under the provisions of title II of the 
national credit union act, or a legally constituted state credit 
union share insurance corporation.  A credit union which fails 
to meet this requirement for insurance of its share and deposit 
accounts shall either dissolve, or merge with another credit 
union which is insured under title II of the national credit 
union act or a legally constituted share insurance corporation. 
    Sec. 187.  Minnesota Statutes 1984, section 52.24, 
subdivision 2, is amended to read: 
    Subd. 2.  [CERTIFICATE OF APPROVAL.] No credit union shall 
be granted a certificate of approval by the commissioner of 
commerce unless the credit union has obtained a commitment for 
insurance of its member share and deposit accounts under the 
provisions of title II of the national credit union act or a 
legally constituted state credit union share insurance 
corporation.  
    Sec. 188.  Minnesota Statutes 1984, section 53.04, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [DISCLOSURE, AUTHORIZED INTEREST, AND OTHER 
CHARGES.] The documentation of loans made pursuant to this 
section must include in the promissory note clear reference to 
the provisions of Minnesota Statutes under which the rate of 
interest and other charges are authorized.  The references must 
be to the chapter number in the case of chapter 53 or chapter 
56, or to the particular section or sections in the case of 
chapter 47 or chapter 334.  On loans made under the authority of 
subdivision 3a and not under the authority of chapter 334, other 
charges including discount points, fees, late payment charges, 
and insurance premiums not specifically authorized by chapter 53 
or any other state statute are controlled by chapter 56. 
    Sec. 189.  Minnesota Statutes 1984, section 53.10, is 
amended to read:  
    53.10 [MANDATORY INSURANCE OR GUARANTEE OF ACCOUNTS.] 
    Subdivision 1.  [REQUIREMENT.] Not later than July 1, 
1983 1987, every industrial loan and thrift company operating 
under this chapter with consent or holding a certificate of 
authorization, which includes the right to sell and issue for 
investment certificates of indebtedness, savings accounts, and 
savings deposits, other than those to be pledged as security for 
a loan made contemporaneously therewith, shall obtain a 
commitment for insurance or guarantee of the certificates, 
accounts, or deposits by or through an insurance company or 
guarantee fund acceptable to the commissioner of commerce.  The 
insurance or guarantee shall provide for the redemption of the 
investment of certificate, account, or deposit holders in the 
event of liquidation, insolvency or bankruptcy of the industrial 
loan and thrift company.  The amount of insurance or guarantee 
benefit to each certificate, account, or deposit holder, as an 
individual or multiparty account, shall at all times be in full 
force and equal to the lesser of the industrial loan and thrift 
company's liability under a certificate, account, or deposit or 
$100,000.  For purposes of this section, an insurance company or 
guarantee fund includes an insurance company authorized to do 
business in this state, an insurance or guarantee fund organized 
under the laws of the United States, this state or any other 
state with the expressed purpose or authority to guarantee the 
accounts of industrial loan and thrift companies or any other 
person who contracts with industrial loan and thrift companies 
to guarantee accounts the federal deposit insurance corporation, 
an agency of this state, or a federal agency established for the 
purpose of insuring deposits in banks or otherwise eligible to 
insure the savings accounts and savings deposits in industrial 
loan and thrift companies operating pursuant to this chapter. 
    Subd. 2.  The commissioner of commerce shall grant 
additional time or times to obtain the commitment for insurance 
or guarantee upon satisfactory evidence that the industrial loan 
and thrift company has made or is making a substantial effort to 
achieve the conditions precedent to issuance of the commitment.  
Additional time or times shall not extend later than July 1, 
1985 1988.  
    Subd. 3.  No industrial loan and thrift company shall 
hereafter be granted consent, or issued a certificate of 
authorization which includes the right to issue for investment 
certificates of indebtedness, savings accounts, and savings 
deposits, other than those to be pledged as security for a loan 
made contemporaneously therewith, unless the industrial loan and 
thrift company has obtained a commitment for insurance or 
guarantee of such certificates which meets the conditions of 
subdivision 1. 
    Subd. 4.  [TRANSITIONAL REQUIREMENT; CONTINUING 
REQUIREMENT.] Until the time the requirements of subdivisions 1 
and 2 are fully satisfied, any existing insurance or guarantee 
approved by the commissioner of commerce pursuant to Laws 1980, 
chapter 503, section 3, must be maintained as a condition to 
continued operations.  Thereafter every industrial loan and 
thrift company shall at all times maintain in effect insurance 
of its accounts by the federal deposit insurance corporation, an 
agency of this state or a federal agency established for the 
purpose of insuring deposits in banks or otherwise eligible to 
insure the accounts of industrial loan and thrift companies 
operating pursuant to this chapter.  If it appears to the 
commissioner that an industrial loan and thrift company has 
failed to meet the requirements of this section, the 
commissioner shall issue an order pursuant to sections 46.24 to 
46.33 requiring compliance or the noncompliant industrial loan 
and thrift company to cease and desist from accepting savings or 
deposit accounts and submit a plan to the commissioner for the 
orderly and timely divestiture of all existing savings and 
deposit accounts. 
    Sec. 190.  Minnesota Statutes 1984, section 55.095, is 
amended to read: 
    55.095 [DUTIES OF COMMISSIONER OF COMMERCE.] 
    Every safe deposit company is at all times under the 
supervision and subject to the control of the commissioner of 
commerce.  He shall, through his examiners, visit at least once 
each year each safe deposit company licensed by him to ascertain 
whether the safe deposit company is complying with the 
provisions of this chapter and whether its methods and systems 
are in accordance with law and designed to protect the property 
of persons doing business with it.  For each examination he 
shall charge the actual expenses of examination.  If the 
commissioner of commerce determines that the safe deposit 
company is violating the provisions of this chapter, or any law 
of the state, or has engaged or the commissioner has reason to 
believe that a licensee is about to engage in an unlawful, 
unsafe, or unsound practice in the conduct of its business, he 
may proceed pursuant to sections 46.24 to 46.33 or serve notice 
on the safe deposit company of his intention to revoke the 
license, stating in general the grounds therefor and giving 
reasonable opportunity to be heard.  If for a period of 15 days 
after the notice, the violation continues, the commissioner of 
commerce may revoke the license and take possession of the 
business and property of the safe deposit company and maintain 
possession until the time the commissioner permits it to 
continue business, or its affairs are finally liquidated.  The 
liquidation must proceed pursuant to sections 49.04 to 49.32. 
    Sec. 191.  Minnesota Statutes 1984, section 65B.49, 
subdivision 4, as amended by Laws 1985, chapter 168, section 11, 
is amended to read: 
    Subd. 4.  [UNINSURED AND UNDERINSURED MOTORIST COVERAGES.] 
(1) No plan of reparation security may be renewed, delivered or 
issued for delivery, or executed in this state with respect to 
any motor vehicle registered or principally garaged in this 
state unless uninsured and underinsured motorist coverages are 
provided therein.  The coverages combined, at a minimum, must 
provide limits of $25,000 because of injury to or the death of 
one person in any accident and $50,000 because of injury to or 
the death of two or more persons in any accident.  In the case 
of injury to, or the death of, two or more persons in any 
accident, the amount available to any one person must not exceed 
the coverage limit provided for injury to, or the death of, one 
person in any accident.  For purposes of this subdivision, 
uninsured motorist coverage and underinsured motorist coverage 
shall be a single coverage. 
    (2) Every owner of a motor vehicle registered or 
principally garaged in this state shall maintain uninsured and 
underinsured motorist coverages as provided in this subdivision. 
    (3) No reparation obligor is required to provide limits of 
uninsured and underinsured motorist coverages in excess of the 
bodily injury limit provided by the applicable plan of 
reparation security. 
    (4) No recovery shall be permitted under the uninsured and 
underinsured motorist coverages of this section for basic 
economic loss benefits paid or payable, or which would be 
payable but for any applicable deductible.  
    (5) Unless the language of the policy provides otherwise, 
if at the time of the accident the injured person is occupying a 
motor vehicle, the limit of liability for uninsured and 
underinsured motorist coverages available to the injured person 
is the limit specified for that motor vehicle.  However, if the 
injured person is occupying a motor vehicle of which the injured 
person is not a named insured, the injured person may be 
entitled to excess insurance protection afforded by a policy in 
which the injured party is a named insured.  The excess 
insurance protection is limited to the extent of covered damages 
sustained, and further is available only to the extent by which 
the limit of liability for like coverage applicable to any one 
motor vehicle listed on the automobile insurance policy of which 
the injured person is named insured exceeds the limit of 
liability of the coverage available to the injured person from 
the occupied motor vehicle. 
    If at the time of the accident the injured person is not 
occupying a motor vehicle, the injured person is entitled to 
select any one limit of liability for any one vehicle afforded 
by a policy under which the injured person is named insured. 
    (6) Regardless of the number of policies involved, vehicles 
involved, persons covered, claims made, vehicles or premiums 
shown on the policy, or premiums paid, in no event shall Unless 
a policyholder makes a specific election to have two or more 
policies added together, the limit of liability for uninsured 
and underinsured motorist coverages for two or more motor 
vehicles may not be added together to determine the limit of 
insurance coverage available to an injured person for any one 
accident.  An insurer shall notify policyholders that they may 
elect to have two or more policies added together. 
    (7) The uninsured and underinsured motorist coverages 
required by this subdivision do not apply to bodily injury of 
the insured while occupying a motor vehicle owned by the 
insured, unless the occupied vehicle is an insured motor vehicle.
    (8) The uninsured and underinsured motorist coverages 
required by this subdivision do not apply to any bodily injury 
until the limits of bodily injury liability policies applicable 
to all insured motor vehicles causing the injury have been 
exhausted by payment of judgments or settlements and proof of 
such is submitted to the insurer providing the uninsured and 
underinsured motorist coverages. 
    Sec. 192.  Minnesota Statutes 1984, section 69.031, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COMMISSIONER OF FINANCE'S WARRANT.] The 
commissioner of finance shall issue to the auditor of each 
county certified to him by the commissioner his warrant for an 
amount equal to the amount certified to by the commissioner 
pursuant to section 69.021.  The amount due to a county and not 
paid by September 1 accrues interest at the rate of one percent 
for each month or part of a month the amount remains unpaid, 
beginning the preceding June 1. 
    Sec. 193.  [84.0885] [YOUTH PROGRAMS.] 
    Subdivision 1.  [PROGRAM CONTENT.] The commissioner shall 
operate a Minnesota conservation corps, a summer youth program, 
and a year-round young adult program.  The commissioner shall 
insure that youths in all parts of the state have an equal 
opportunity for employment and that equal numbers of male and 
female youth are selected for the summer residential program. 
Youth corps members must be 16 to 18 years old and young adult 
corps members must be 18 to 26 years old.  A corps member in the 
Minnesota conservation corps is not a public employee under 
chapter 43A or 179A.  The Minnesota conservation corps shall 
provide service for the various department of natural resources 
disciplines including parks, forestry and wildlife habitat 
improvement, and trails and waterways, and other public land 
managers as appropriate. 
    Subd. 2.  [EXPENDITURES FROM SPECIAL FUNDS.] An 
appropriation from a special revenue fund or account to the 
commissioner for youth programs must be spent for projects that 
are consistent with the purposes of the fund or account from 
which the appropriation was made. 
    Sec. 194.  Minnesota Statutes 1984, section 84.86, 
subdivision 1, is amended to read: 
    Subdivision 1.  With a view of achieving maximum use of 
snowmobiles consistent with protection of the environment the 
commissioner of natural resources shall adopt rules and 
regulations in the manner provided by chapter 14, for the 
following purposes: 
    (1) Registration of snowmobiles and display of registration 
numbers. 
    (2) Use of snowmobiles insofar as game and fish resources 
are affected. 
    (3) Use of snowmobiles on public lands and waters under the 
jurisdiction of the commissioner of natural resources. 
    (4) Uniform signs to be used by the state, counties, and 
cities, which are necessary or desirable to control, direct, or 
regulate the operation and use of snowmobiles. 
    (5) Specifications relating to snowmobile mufflers. 
    (6) A comprehensive snowmobile information and safety 
education and training program, including but not limited to the 
preparation and dissemination of snowmobile information and 
safety advice to the public, the training of snowmobile 
operators, and the issuance of snowmobile safety certificates to 
snowmobile operators who successfully complete the snowmobile 
safety education and training course.  For the purpose of 
administering such program and to defray a portion of the 
expenses of training and certifying snowmobile operators, the 
commissioner shall collect a fee of not to exceed $5 from each 
person who receives the training and shall deposit the fee in 
the general fund snowmobile trails and enforcement account and 
the amount thereof is appropriated annually to the commissioner 
of natural resources for the administration of such programs.  
The commissioner shall cooperate with private organizations and 
associations, private and public corporations, and local 
governmental units in furtherance of the program established 
under this clause.  The commissioner shall consult with the 
commissioner of public safety in regard to training program 
subject matter and performance testing that leads to the 
certification of snowmobile operators. 
    (7) The operator of any snowmobile involved in an accident 
resulting in injury requiring medical attention or 
hospitalization to or death of any person or total damage to an 
extent of $100 or more, shall promptly forward a written report 
of the accident to the commissioner on such form as he shall 
prescribe. 
    Sec. 195.  Minnesota Statutes 1984, section 84B.03, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONVEYANCE.] In furtherance of boundary 
adjustments to Voyageurs National Park authorized by Congress in 
Public Law 97-405, and notwithstanding any other law to the 
contrary, the governor, after consulting the commissioner of 
natural resources, shall donate and convey to the United States 
of America, for Voyageurs National Park, the state's interest in 
the following described lands:  
    (1) Lot 7, Section 4, Township 68 North, Range 18 West; 
    (2) the area of land commonly referred to as the Kabetogama 
Forestry Station, consisting of approximately 18.45 acres, and 
located in Section 21, Township 69 North, Range 21 West; and 
    (3) land not exceeding 120 acres consisting of a strip of 
land through that portion of Section 1, Township 68 North, Range 
20 West, which is roughly parallel to and 400 feet on each side 
of the unimproved road extending northward from a point of 
beginning at the Ash River Trail in the Southeast Quarter of the 
Southeast Quarter of Section 1 to a point of termination in the 
Northeast Quarter of the Northwest Quarter in Section 1.  
    The Lands described in clause (1) shall be donated and 
conveyed only after $30,000 has been paid by the commissioner of 
natural resources to the city of Tower in return for a 
conveyance to the state of all right, title, and interest of the 
city of Tower in the land.  Lands described in clauses (2) and 
(3) shall be donated and conveyed only after the lands have been 
condemned by the commissioner of natural resources in the manner 
required by subdivision 2, and the time to appeal from the 
condemnation award has expired.  All conveyances required by 
this subdivision shall comply with subdivision 1, except for the 
provision required by clause (1)(a) of that subdivision. 
    Sec. 196.  [85.012] [Subd. 2.] BANNING STATE PARK.  The 
following area is added to Banning State Park: 
    The Southwest 1/4 of the Southwest 1/4, and the Southeast 
1/4 of the Southwest 1/4 of Section 12:  The Northwest 1/4, the 
Northwest 1/4 of the Southwest 1/4, the Northeast 1/4 of the 
Southwest 1/4, and the Southwest 1/4 of the Southwest 1/4 in 
Section 13; all in Township 43 North, Range 20 West. 
    Sec. 197.  Minnesota Statutes 1984, section 85.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [RULES, FEES.] The commissioner may make 
rules for the use of state parks, and charge appropriate fees 
for these uses, as hereinafter specified; and for related 
services and facilities, including but not limited to the 
following: 
    (1) Provide Special parking space for automobile or other 
motor-driven vehicle in any state park or state recreation area; 
    (2) Provide Special parking spurs and camp grounds for 
automobiles and sites for tent camping and special auto trailer 
coach parking spaces for the use of the individual charged for 
the space according to the daily rates which shall be determined 
and fixed by the commissioner consistent with the type of 
facility provided for the accommodation of guests in any 
particular park and with similar facilities offered for tourist 
camping in the area; 
    (3) Improve and maintain golf courses already established 
in state parks, and charge reasonable fees for the use thereof; 
    (4) Charge a fee for entrance to any pageant grounds which 
may be created in any state park for the purpose of having 
historical or other pageants conducted by the commissioner of 
any other authorized agency. 
    When deemed necessary the commissioner, for the purpose of 
better carrying out state park pageants, may stage the pageants 
in any municipal park or other lands near or adjoining any state 
park, and all receipts from the pageants shall be used in the 
same manner as though the pageants were carried on in a state 
park; 
    (5) Provide water, sewer, and electric service to trailer 
or tent camp sites and charge a reasonable fee therefor. 
    Any individual age 65 or over who is a resident of the 
state of Minnesota who furnishes satisfactory proof of age and 
residence, a physically handicapped person with a motor vehicle 
that has special plates issued under section 168.021, 
subdivision 1, or a physically handicapped person who possesses 
a certificate issued under section 169.345, subdivision 3, shall 
be exempt from payment of one-half of the fees set pursuant to 
clause 2 on Monday Sunday through Thursday of each week.  Fees 
paid pursuant to this section shall be deposited in the state 
park maintenance and operation account in the state 
treasury.  Gross receipts derived from sales, rentals, or leases 
of natural resources within state parks, recreation areas, and 
waysides, other than those on trust fund lands, must be 
deposited in the state treasury and be credited to the state 
park maintenance and operation account. 
    Sec. 198.  Minnesota Statutes 1984, section 85.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [PERMITS FOR MOTOR VEHICLES.] (a) Except as 
provided in clauses (b), (c), (d) and (e), no motor vehicle 
shall enter or be permitted to enter any state park, state 
recreation area or state wayside over 50 acres in area unless it 
has affixed to its windshield in the lower right corner thereof 
a permit which is provided for hereinafter.  The permit shall be 
totally affixed by its own adhesive to the windshield.  The 
commissioner shall procure permits for each calendar year which 
by appropriate language shall grant permission to use any state 
park, state recreation area or state wayside over 50 acres in 
area.  Permits for each calendar year shall be provided and 
placed on sale before October November 1 next preceding, and may 
be affixed and used on or at any time after that date until the 
end of the calendar year for which issued.  Permits in each 
category shall be numbered consecutively for each year of 
issue.  A fee of $10 $15 shall be charged for each vehicle 
permit issued for a vehicle licensed in Minnesota and $15 for a 
vehicle licensed outside of Minnesota, except that for the 
following:  (1) permits of appropriate special design may be 
sold individually at $3 for a vehicle licensed in Minnesota and 
$4 for a vehicle licensed outside of Minnesota covering the use 
of state parks, state recreation areas or state waysides under 
such conditions as the commissioner may prescribe for a 
designated period of not more than two days, and (2) special 
daily vehicle permits for groups, as may be authorized by rule 
adopted by the commissioner at a fee prescribed by the 
commissioner.  The fee collected shall be deposited in the state 
park maintenance and operation account in the state treasury.  
Appropriations from this account shall be for state park 
maintenance and operation.  Permits shall be issued by employees 
of the division of parks and recreation as the commissioner of 
natural resources may designate in writing and as hereinbefore 
provided. 
    (b) The commissioner shall issue without charge an 
employee's motor vehicle permit to any state employee, peace 
officer, or contractor who, for the purpose of performing 
official duties, must enter places where park stickers permits 
are required.  The peace officer, employee, or contractor shall 
display the permit on the motor vehicle in the same manner as 
state park stickers permits are displayed.  A motor vehicle 
displaying only an employee's permit may not enter a place where 
park stickers permits are required if the vehicle is used for 
purposes other than performing official duties. 
    (c) The commissioner shall issue for one-half of the fees 
provided in clause (a) a motor vehicle permit to any individual 
of the age of 65 years or over who furnishes satisfactory proof 
of age and who is a resident of the state of Minnesota, to a 
physically handicapped person with a motor vehicle that has 
special plates issued under section 168.021, subdivision 1, or a 
daily permit for a physically handicapped person who possesses a 
certificate issued under section 169.345, subdivision 3. The 
permit or the decal evidencing its issuance shall be valid only 
when displayed upon the vehicle owned and occupied by the person 
to whom issued. 
    (d) No state park permit is necessary for entry of a motor 
vehicle into a state park, state monument, state recreation 
area, or state wayside, on one day each calendar year which the 
commissioner may designate as state park open house day for the 
purpose of acquainting the public with state parks, recreation 
areas, and waysides, or two days each year, if the open house is 
held in conjunction with a special pageant as described in 
subdivision 1.  The commissioner shall announce the date of 
state park open house day at least 30 days in advance of the 
open house. 
    (e) No state park permit is necessary, nor shall any fee, 
including a parking fee, be charged, for entry of a motor 
vehicle into that part of Fort Snelling state park commonly 
known as Fort Snelling Memorial Chapel Island. 
    Sec. 199.  Minnesota Statutes 1984, section 85.22, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [RECEIPTS, APPROPRIATION.] All receipts derived 
from the rental or sale of items in state parks shall be 
deposited in the state treasury and be credited to the state 
parks working capital fund, which fund is annually appropriated 
solely for the purchase of merchandise and payment of expenses 
attributable to items for resale or rental.  Annually, as of the 
close of business on June 30, the unencumbered balance in excess 
of $100,000 shall be cancelled into the general fund state park 
maintenance and operation account. 
    Sec. 200.  Minnesota Statutes 1984, section 85.43, is 
amended to read: 
    85.43 [DISPOSITION OF RECEIPTS; PURPOSE.] 
    Fees from cross country ski licenses and permits shall be 
deposited in the state treasury and credited to a cross country 
ski account and may be expended only as appropriated by law for: 
    (a) grants-in-aid for cross country ski trails sponsored by 
local units of government and special park districts as provided 
in section 85.44; and 
    (b) maintenance, winter grooming, and associated 
administrative costs for cross country ski trails under the 
jurisdiction of the commissioner. 
    Sec. 201.  [85A.001] [PURPOSE.] 
    It is the intent of the legislature to foster a partnership 
between the private sector and the state for the purpose of 
operating a zoological garden.  The legislature seeks to enable 
the Minnesota zoological garden to operate independently, 
efficiently, and economically and to be active in soliciting 
nonstate contributions. 
    Sec. 202.  Minnesota Statutes 1984, section 85A.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  The Minnesota zoological garden is hereby 
established under the supervision and control of the state 
zoological board which is hereby created.  The board shall 
consist consists of 11 15 public and private sector members 
appointed by the governor having a background or interest in 
zoological societies or zoo management or an ability to generate 
community interest in the Minnesota zoological garden.  Members 
shall be appointed by the governor after consideration of a list 
supplied by board members serving on a nominating committee.  
Terms, compensation, and removal of members and filling of 
vacancies are as provided in section 15.0575.  In making 
appointments, the governor shall consider, among other factors, 
the ability of members to garner support for the Minnesota 
zoological garden.  In consultation with the Dakota county board 
the governor board shall nominate and the governor shall appoint 
as a twelfth member one of the 15 members of the zoo board a 
resident of Dakota county who shall not vote and who may be a 
member of the county board. 
    A member of the board may not be an employee of or have a 
direct or immediate family financial interest in a business that 
provides goods or services to the zoo.  A member of the board 
may not be an employee of the zoo. 
    Sec. 203.  Minnesota Statutes 1984, section 85A.01, 
subdivision 2, is amended to read:  
    Subd. 2.  The board shall annually elect a chairman from 
among its members a chairman and such other officers as it may 
deem necessary for the performance of its duties.  It shall 
appoint a director to serve at its pleasure who is in the 
unclassified service of the state and who shall be chosen solely 
on the basis of his training, experience and other 
qualifications appropriate to the field of zoo management.  The 
director shall act as executive secretary and appoint 
administrative officers and employees of the board with the 
approval of the board.  With the approval of the board, he shall 
exercise the powers and duties set forth in section 85A.03. 
    Sec. 204.  Minnesota Statutes 1984, section 85A.02, 
subdivision 3, is amended to read: 
    Subd. 3.  The board may conduct research studies and 
programs, collect and analyze data and prepare reports, maps, 
charts and other information relating to the zoological garden 
or any wild or domestic animals or may contract for any of such 
services without complying with the requirements of chapter 16 
16B. 
    Sec. 205.  Minnesota Statutes 1984, section 85A.02, 
subdivision 4, is amended to read: 
    Subd. 4.  The board may appoint an advisory committee 
consisting of persons who are members of zoological societies or 
who have shown a background or interest in such societies or zoo 
management or an ability to generate community support for the 
Minnesota zoological garden. 
    Sec. 206.  Minnesota Statutes 1984, section 85A.02, 
subdivision 5, is amended to read: 
    Subd. 5.  The board may accept and use gifts, grants or 
contributions from any nonstate source or appropriations made by 
the legislature for the purpose of the establishment and 
operation of the zoological garden or for the establishment, 
improvement or operation of facilities related thereto and 
necessary therefor at the sites of other zoological gardens 
owned by governmental subdivisions of the state of 
Minnesota.  Unless otherwise restricted by the terms of a gift 
or bequest, the board may sell, exchange, or otherwise dispose 
of, and invest or reinvest the money, securities, or other 
property given or bequeathed to it from nonstate sources.  The 
principal of these funds, the income from them, and all other 
revenues received by it from any nonstate source must be placed 
in the depositories the board determines and is subject to 
expenditure for the board's purposes.  Any additional operating 
expenses incurred by virtue of capital development projects must 
be paid for with funds other than state appropriations. 
    Sec. 207.  Minnesota Statutes 1984, section 85A.02, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
administrator who shall serve as the executive secretary and 
principal administrative officer of the board and, subject to 
its approval, the administrator shall operate the Minnesota 
zoological garden and enforce all regulations and policy 
decisions of the board.  The administrator must be chosen solely 
on the basis of training, experience, and other qualifications 
appropriate to the field of zoo management and development.  The 
board shall set the compensation for the administrator within 
the limits established for the commissioner of human rights in 
section 15A.081, subdivision 1.  The administrator shall perform 
duties assigned by the board and shall serve in the unclassified 
service at the pleasure of the board.  The board, with the 
participation of the private sector, shall appoint a development 
director in the unclassified service or contract with a 
development consultant to establish mechanisms to foster 
community participation in and community support for the 
Minnesota zoological garden.  The board may employ other 
necessary professional, technical, and clerical personnel.  
    (b) The board may contract with individuals to perform 
professional services and may contract for the purchases of 
necessary species exhibits, supplies, services, and equipment.  
    Sec. 208.  Minnesota Statutes 1984, section 85A.02, is 
amended by adding a subdivision to read: 
    Subd. 5b.  [EXEMPTIONS.] Except as it determines, and 
except as provided in subdivisions 16 and 17, the board is not 
subject to chapters 15, 15A, 16A, and 16B concerning budgeting, 
payroll, and the purchase of goods or services.  The board is 
not subject to chapter 14 concerning administrative procedures 
except sections 14.38, subdivision 7, and 14.39 to 14.43 
relating to the legal status of rules and the legislative review 
of rules.  
    Sec. 209.  Minnesota Statutes 1984, section 85A.02, is 
amended by adding a subdivision to read: 
    Subd. 5c.  [FINANCIAL REPORT.] The board shall employ a 
certified public accountant to audit and examine its financial 
records each year.  The board shall submit to the legislative 
auditor a report of the accountant's examination or audit.  The 
legislative auditor shall review the report and accept it or 
make additional examinations if these would be in the public 
interest.  The working papers of the certified public accountant 
relating to the board must be made available to the legislative 
auditor on request.  
    Sec. 210.  Minnesota Statutes 1984, section 85A.02, 
subdivision 7, is amended to read: 
    Subd. 7.  The board may enact rules governing the efficient 
protection of the Minnesota zoological garden and the related 
facilities and the conduct of persons entering therein.  
Notwithstanding subdivision 5b, rules shall become effective in 
the manner provided by law for the promulgation of rules by 
state departments and agencies.  The violation of a rule 
promulgated by the board under this section is a petty 
misdemeanor.  The board may specify that violation of a 
designated rule shall be sufficient cause for ejection from the 
grounds of the zoological garden. 
    Sec. 211.  Minnesota Statutes 1984, section 85A.02, 
subdivision 12, is amended to read: 
    Subd. 12.  The board shall report to the legislature by 
January 1 September 15 of each year on the activities of the 
board and the operation of the zoological garden.  The report 
must summarize the activities of the board and the Minnesota 
zoological garden over the preceding fiscal year ending June 30. 
The report must be submitted together with the financial report 
required by subdivision 5c.  
    Sec. 212.  Minnesota Statutes 1984, section 85A.02, 
subdivision 16, is amended to read:  
    Subd. 16.  The board may acquire by lease-purchase or 
installment purchase contract, transportation systems, 
facilities and equipment that it determines will substantially 
enhance the public's opportunity to view, study or derive 
information concerning the animals to be located in the 
zoological garden, and will increase attendance at the garden.  
The contracts may provide for:  (1) the payment of moneys over a 
twelve year period, or over a longer period not exceeding 25 
years if approved by the commissioner of administration board;  
(2) the payment of money from any funds of the board not pledged 
or appropriated for another purpose; (3) indemnification of the 
lessor or seller for damage to property or injury to persons due 
primarily to the actions of the board or its employees; (4) the 
transfer of title to the property to the board upon execution of 
the contract or upon payment of specified amounts; (5) the 
reservation to the lessor or seller of a security interest in 
the property; and (6) any other terms that the board determines 
to be commercially reasonable.  Property so acquired by the 
board, and its purchase or use by the board, or by any 
non-profit corporation having a concession from the board 
requiring its purchase, shall not be subject to taxation by the 
state or its political subdivisions.  Each contract shall be 
subject to the provisions of chapter 16 16B, relating to 
competitive bidding, provided that the board is not required to 
readvertise for competitive proposals for any transportation 
system, facilities and equipment heretofore selected from 
competitive proposals taken pursuant to section 85A.03, 
subdivisions 4 and 4a subdivision 18. 
    Sec. 213.  Minnesota Statutes 1984, section 85A.02, is 
amended by adding a subdivision to read: 
    Subd. 17.  [ADDITIONAL POWERS.] The board may establish a 
schedule of charges for admission to or the use of the Minnesota 
zoological garden or any related facility.  The board shall have 
a policy encouraging the admission of elementary school children 
at no charge when part of an organized school activity.  The 
board may provide for the purchase, reproduction, and sale of 
gifts, souvenirs, publications, informational materials, food 
and beverages, and grant concessions for the sale of these items.
    Sec. 214.  Minnesota Statutes 1984, section 85A.02, is 
amended by adding a subdivision to read:  
    Subd. 18.  [PURCHASING.] The board may contract for 
supplies, materials, purchase or rental of equipment, and 
utility services.  Chapter 16B does not apply to these 
contracts.  However, contracts shall be awarded on the basis of 
competitive bids to the lowest responsible bidder, taking into 
consideration conformity with the specifications, terms of 
delivery, and other conditions imposed in the call for bids.  
Competitive bidding is not required for purchases clearly and 
legitimately limited to a single source of supply; the purchase 
price may then be established by direct negotiation.  
Competitive bids are not required for utility services if no 
competition exists or if rates are fixed by law or ordinance.  
The board may contract for consultant, professional, and 
technical services without regard to sections 16B.17 and 16B.19. 
    Sec. 215.  Minnesota Statutes 1984, section 85A.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEPOSIT.] All receipts from the operation 
of the Minnesota zoological garden shall be deposited in the 
state treasury and credited to the credit of the general a zoo 
fund, except as provided in subdivision 3 and are appropriated 
to the board for the operation of the Minnesota zoological 
garden. 
    Sec. 216.  [TRANSITIONS.] 
    The terms of all members of the state zoological board, 
except the chair of the board, terminate on the effective date 
of this section.  The chair of the board immediately before the 
effective date of this section shall be a member of the newly 
constituted board and shall serve a term expiring four years 
from the effective date of this section.  Members of the board 
before the effective date of this section shall nominate 
candidates for the governor to appoint to the newly constituted 
board.  
    Sec. 217.  [SUMMER YOUTH PROGRAM.] 
    The zoological board may employ students to work 
exclusively between June 1 and September 30 of each year.  All 
federal and state minimum wage laws apply, but these workers are 
not considered employees of the state of Minnesota within the 
meaning of section 43A.02, subdivision 21, nor are they public 
employees under chapter 179A.  This employment is not to exceed 
40 hours per week per individual nor 12 weeks in duration.  This 
section is repealed September 30, 1986. 
    Sec. 218.  [88.80] [ASPEN RECYCLING PROGRAM.] 
    The commissioner may establish and accelerate an aspen 
recycling program to assure that marketable stands of aspen are 
available on state lands and may designate priority areas on 
state lands for aspen recycling. 
    Sec. 219.  [EMERGENCY ASSISTANCE FOR LOGGERS OF STATE 
TIMBER.] 
    Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
finds as follows that the permanent closing in 1984, without 
advance warning, of Minnesota and Wisconsin plants that 
processed aspen, spruce, and tamarack timber, has caused severe 
distress and hardship to those loggers who depended on those 
plants to purchase timber from them; and that action by the 
state is necessary to prevent loggers affected by these plant 
closings from being forced out of business with consequent loss 
of tax revenues, loss of future income for the permanent school 
fund and other trust funds, increased unemployment, reduced 
competition, and deterioration of the public health and welfare. 
    Subd. 2.  [LOGGERS WHO MAY APPLY.] A purchaser of a state 
timber permit issued before January 1, 1985, in regard to 
permits covering aspen or spruce timber, or issued before July 
1, 1984, in regard to permits covering tamarack timber, who, on 
the effective date of this section, has not cut all or any 
portion of the aspen or spruce or tamarack timber from the lands 
covered by the permit and who has been adversely affected by the 
permanent closing in 1984 of any Minnesota or Wisconsin plant 
that processed aspen, spruce, or tamarack timber, may make 
written application to the commissioner of natural resources for 
cancellation of any or all obligations to cut and remove any 
aspen, spruce, or tamarack timber or any other timber species 
covered by the permit.  
    Subd.  3.  [TERMS OF APPLICATION.] The application to the 
commissioner, which shall be in the form of an affidavit, must 
show:  
    (1) the quantity and timber species covered by the permit 
for which the permittee seeks release from permit obligations; 
    (2) the permittee has not cut the timber for which the 
permittee is requesting release from permit obligations;  
    (3) the permittee is independent from any company that may 
have permanently closed a timber processing plant in Minnesota 
or Wisconsin during 1984; 
    (4) the permittee had a contract with the company operating 
the plant or had a history of selling timber to that company; 
    (5) the permittee has no reasonable prospect that the 
company will purchase aspen, spruce, or tamarack from the 
permittee during the life of the permit; and 
    (6) the permittee has no other profitable market for aspen, 
spruce, or tamarack.  
    Subd. 4.  [CANCELLATION OF PERMITS.] If the application 
meets the requirements of subdivision 2, the commissioner shall 
grant the application under the following conditions:  
    (a) If there has been no cutting of any timber whatsoever, 
and the permittee agrees, as a condition of cancellation, to 
forfeit the 25 percent payment made at the time of sale in the 
case of a state timber permit acquired at an auction sale under 
Minnesota Statutes, section 90.151 or 90.121, or, in the case of 
an informal sale, to forfeit 25 percent of the cash payment made 
on a permit acquired at an informal sale under section 90.191, 
with the balance to be refunded as provided by law for refunds 
on informal permits, the commissioner shall grant the 
application and cancel the permit.  
    (b) If there has been cutting of some but not all of the 
timber covered by the permit, regardless of the type of permit, 
and the permittee agrees, as a condition of cancellation, to 
forfeit 25 percent of the appraised price of the uncut timber, 
the commissioner shall grant the application and cancel the 
permit.  
    Subd. 5.  [DEADLINE FOR APPLICATION TO CANCEL.] No 
obligations on any permit may be canceled by the commissioner if 
the application is not received by the commissioner within 90 
days from the effective date of this section.  
    Sec. 220.  Minnesota Statutes 1984, section 97.4841, 
subdivision 3, is amended to read: 
    Subd. 3.  [FEE.] A stamp shall be issued to each small game 
hunting license applicant or other person interested in 
waterfowl conservation upon the payment of a fee of $3 $5.  
Stamps shall be issued annually and shall be valid from March 1 
through the last day of the following February. 
    Sec. 221.  Minnesota Statutes 1984, section 97.4842, 
subdivision 2, is amended to read: 
    Subd. 2.  [FEE.] A stamp shall be issued to each fishing 
license applicant or other person interested in improvement of 
trout and salmon streams and lakes upon the payment of a fee 
of $3 $5.  Stamps shall be issued annually and shall be valid 
from March 1 through the last day of the following February.  
    Sec. 222.  [97.851] [FEES FOR ADVANCED HUNTER EDUCATION 
COURSES.] 
    The commissioner of natural resources, with the approval of 
the commissioner of finance, may impose a fee not to exceed $10 
for each person attending an advanced education course of 
instruction for hunters or trappers.  The commissioner shall 
establish the fee under section 16A.128.  Fees collected under 
this section must be deposited in the state treasury and 
credited to the game and fish fund. 
    Sec. 223.  Minnesota Statutes 1984, section 98.45, is 
amended by adding a subdivision to read:  
    Subd. 9.  Resident parents, legal guardians, or other 
resident adults may take fish by angling without procuring a 
license during the first Saturday and Sunday next following the 
opening weekend of the angling season beginning in 1986 only 
when in the presence of their child or ward or another child who 
is under the age of 16 years.  The commissioner shall take 
actions feasible to publicize this second weekend of the angling 
season as "Take a Kid Fishing Weekend." 
    Sec. 224.  Minnesota Statutes 1984, section 98.46, 
subdivision 2, is amended to read: 
    Subd. 2.  Fees for the following licenses, to be issued to 
residents only, shall be: 
    (1) to take small game, $7; 
    (2) to take deer with firearms, $15; 
    (3) to take deer with bow and arrow, $15; 
    (4) to take fish by angling, $6.50; 
    (5) combination husband and wife, to take fish by angling, 
$10.50; 
    (6) to take moose, $140 $200 for an individual or for a 
party of not to exceed four persons; 
    (7) to take bear only, $15 $25; 
    (8) to take turkeys, $10, in addition to a small game 
license. 
    Sec. 225.  Minnesota Statutes 1984, section 98.46, 
subdivision 14, is amended to read: 
    Subd. 14.  Fees for the following licenses, to be issued to 
nonresidents, shall be: 
    (1) to take small game and unprotected quadrupeds with 
firearms and bow and arrows, $35 $46; 
    (2) to take deer and unprotected quadrupeds with firearms, 
$75 $100; 
    (3) to take deer and unprotected quadrupeds with a bow and 
arrows only, $75 $100;  
    (4) to take bear, $100 $150; 
    (5) to take turkeys, $30, in addition to a small game 
license; 
    (6) to hunt raccoon, bobcat, fox, coyote, or Canada lynx, 
with or without dogs, $100, in addition to nonresident small 
game license. 
    Sec. 226.  Minnesota Statutes 1984, section 98.46, 
subdivision 15, is amended to read: 
    Subd. 15.  Fees for the following licenses, to be issued to 
nonresidents, shall be: 
    (1) to take fish by angling, $15 $16; 
    (2) a short term individual license to take fish by angling 
for seven consecutive days, $10.50 $13;  
    (3) a short term individual license to take fish by angling 
for one day three days, $5 $10;  
    (4) combination husband and wife family, to take fish by 
angling, $20 $27.50; 
    (5) for any fish house used during the winter fishing 
season, $15.  A fish house licensed pursuant to this subdivision 
shall be identified as prescribed in subdivision 5.  The house 
shall be collapsible and portable, and shall at no time be left 
unattended while on the ice.  The provisions of section 101.42 
not inconsistent herewith shall also apply to fish houses 
licensed pursuant to this subdivision. 
    Sec. 227.  Minnesota Statutes 1984, section 100.271, 
subdivision 2, is amended to read: 
    Subd. 2.  Application shall be on a form provided by the 
commissioner.  The commissioner shall charge a fee of $3 for 
each person who makes application for a turkey license and $1 
for each person who makes application for a moose license. 
    Sec. 228.  Minnesota Statutes 1984, section 105.42, is 
amended by adding a subdivision to read: 
    Subd. 4.  Where prescribed in an approved storm water 
management plan under section 473.879, the commissioner shall 
issue permits to establish control elevations for landlocked 
lakes up to three feet below the ordinary high water level for 
the lake, if the commissioner finds that the control is 
necessary to prevent flooding of homesteads and that no other 
reasonable or cost-effective alternative is available. 
    Sec. 229.  Minnesota Statutes 1984, section 115.03, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [PUBLIC NOTICE FOR NATIONAL POLLUTANT DISCHARGE 
ELIMINATION SYSTEM PERMIT APPLICATION.] The director must give 
public notice of a completed national pollutant discharge 
elimination system permit application for new municipal 
discharges in the official county newspaper of the county where 
the discharge is proposed. 
    Sec. 230.  Minnesota Statutes 1984, section 115A.904, is 
amended to read: 
    115A.904 [LAND DISPOSAL PROHIBITED.] 
    The disposal of waste tires in the land is prohibited after 
July 1, 1985 1986.  This does not prohibit the storage of 
unprocessed waste tires at a collection or processing facility. 
    Sec. 231.  Minnesota Statutes 1984, section 115A.908, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEPOSIT OF REVENUE.] Revenue collected shall be 
credited to the general a motor vehicle transfer fund. 
    Sec. 232.  Minnesota Statutes 1984, section 115A.914, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AGENCY RULES.] The agency shall adopt 
rules for administration of waste tire collector and processor 
permits, waste tire nuisance abatement, and waste tire 
collection.  Until December 31, 1985, the agency may adopt 
emergency rules for these purposes.  
    Sec. 233.  Minnesota Statutes 1984, section 116.07, 
subdivision 4d, is amended to read: 
    Subd. 4d.  [PERMIT FEES.] The agency may collect permit 
fees in amounts not greater than those necessary to cover the 
reasonable costs of reviewing and acting upon applications for 
agency permits and implementing and enforcing the conditions of 
the permits pursuant to agency rules.  Permit fees shall not 
include the costs of litigation.  The agency shall adopt rules 
under section 16A.128 establishing the amounts and methods of 
collection of any permit fees collected under this subdivision.  
Any money collected under this subdivision shall be deposited in 
the general special revenue fund. 
    Sec. 234.  Minnesota Statutes 1984, section 116.12, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FEE SCHEDULES.] The agency shall establish 
the fees provided in subdivisions 2 and 3 in the manner provided 
in section 16A.128 to cover the amount appropriated from 
the general special revenue fund to the agency for that year for 
permitting, monitoring, inspection and enforcement expenses of 
the hazardous waste activities of the agency.  
    The legislature may appropriate additional amounts from the 
general fund that need not be covered by fees or may provide 
that the fees shall cover only a portion of the general fund 
appropriation for the hazardous waste activities of the agency, 
in order to assure adequate funding for the regulatory and 
enforcement functions of the agency related to hazardous waste.  
All fees collected by the agency under this section shall be 
deposited in the general special revenue fund. 
    Sec. 235.  [116.46] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] As used in sections 236 to 239, 
the terms defined in this section have the meanings given them.  
    Subd. 2.  [AGENCY.] "Agency" means the pollution control 
agency.  
    Subd. 3.  [OPERATOR.] "Operator" means a person in control 
of, or having responsibility for, the daily operation of an 
underground storage tank.  
    Subd. 4.  [OWNER.] "Owner" means a person who owns an 
underground storage tank and a person who owned it immediately 
before discontinuation of its use.  
    Subd. 5.  [PERSON.] "Person" has the meaning given it in 
section 116.06, subdivision 8.  
    Subd. 6.  [REGULATED SUBSTANCE.] "Regulated substance" 
means: 
    (1) a hazardous material listed in Code of Federal 
Regulations, title 49, section 172.101; or 
    (2) petroleum, including crude oil or a fraction of crude 
oil that is liquid at a temperature of 60 degrees Fahrenheit and 
pressure of 14.7 pounds per square inch absolute.  
    Subd. 7.  [RELEASE.] "Release" means a spilling, leaking, 
emitting, discharging, escaping, leaching, or disposing from an 
underground storage tank into the environment.  Release does not 
include designed venting consistent with the agency's air 
quality rules.  
    Subd. 8.  [UNDERGROUND STORAGE TANK.] "Underground storage 
tank" means any one or a combination of containers including 
tanks, vessels, enclosures, or structures and underground 
appurtenances connected to them, that is used to contain or 
dispense an accumulation of regulated substances and the volume 
of which, including the volume of the underground pipes 
connected to them, is ten percent or more beneath the surface of 
the ground.  
    Sec. 236.  [116.47] [EXEMPTIONS.] 
    Sections 237 and 238 do not apply to:  
    (1) farm or residential tanks of 1,100 gallons or less 
capacity used for storing motor fuel for noncommercial purposes; 
tanks of 1,100 gallons or less capacity used for storing heating 
oil for consumptive use on the premises where stored; 
    (2) pipeline facilities, including gathering lines, 
regulated under the Natural Gas Pipeline Safety Act of 1968, 
United States Code, title 49, chapter 24, or the Hazardous 
Liquid Pipeline Safety Act of 1979, United States Code, title 
49, chapter 29;  
    (3) surface impoundments, pits, ponds, or lagoons;  
    (4) storm water or waste water collection systems;  
    (5) flow-through process tanks;  
    (6) tanks located in an underground area, including 
basements, cellars, mineworkings, drifts, shafts, or tunnels, if 
the storage tank is located upon or above the surface of the 
floor; or 
    (7) septic tanks. 
    Sec. 237.  [116.48] [NOTIFICATION REQUIREMENTS.] 
    Subdivision 1.  [TANK STATUS.] An owner of an underground 
storage tank must notify the agency by June 1, 1986, or within 
30 days after installation, whichever is later, of the tank's 
existence and specify the age, size, type, location, uses, and 
contents of the tank on forms prescribed by the agency. 
    Subd. 2.  [ABANDONED TANKS.] An owner of an underground 
storage tank permanently taken out of service on or after 
January 1, 1974, must notify the agency by June 1, 1986, of the 
existence of the tank and specify or estimate to the best of the 
owner's knowledge on forms prescribed by the agency, the date 
the tank was taken out of service, the age, size, type, and 
location of the tank, and the type and quantity of substance 
remaining in the tank. 
    Subd. 3.  [CHANGE IN STATUS.] An owner must notify the 
agency within 30 days of a permanent removal from service or a 
change in the reported uses, contents, or ownership of the 
underground storage tank.  
    Subd. 4.  [DEPOSIT INFORMATION.] Beginning January 1, 1986, 
and until July 1, 1987, a person who deposits regulated 
substances in an underground storage tank must inform the owner 
or operator in writing of the notification requirement of this 
section.  
    Subd. 5.  [SELLER'S RESPONSIBILITY.] A person who sells a 
tank intended to be used as an underground storage tank or 
property that the seller knows contains an underground storage 
tank must inform the purchaser in writing of the owner's 
notification requirements of this section. 
    Sec. 238.  [116.49] [ENVIRONMENTAL PROTECTION 
REQUIREMENTS.] 
    Subdivision 1.  [RULES.] The agency must adopt rules 
applicable to all owners and operators of underground storage 
tanks.  The rules must establish the safeguards necessary to 
protect human health and the environment.  The agency may delay 
adopting the rules until the United States Environmental 
Protection Agency proposes regulations for regulated substances, 
as defined in section 235, subdivision 6, clause (1).  The 
agency shall delay adopting the rules for regulated substances, 
as defined in section 235, subdivision 6, clause (2), until the 
United States Environmental Protection Agency publishes final 
regulations for underground storage tanks, or February 8, 1987, 
whichever is earlier. 
    Subd. 2.  [INTERIM STANDARDS.] Until the rules required by 
subdivision 1 become effective, a person may not install an 
underground storage tank unless the tank:  
    (1) is installed according to requirements of the American 
Petroleum Institute Bulletin 1615 (November 1979) and all 
manufacturer's recommendations;  
    (2) is cathodically protected against corrosion, 
constructed of noncorrosive material, steel clad with a 
noncorrosive material, or designed in a manner to prevent the 
release of any stored substance; and 
    (3) is constructed to be compatible with the substance to 
be stored.  
    Sec. 239.  [116.50] [PREEMPTION.] 
    Sections 235 to 238 preempt conflicting local and municipal 
rules or ordinances requiring notification or establishing 
environmental protection requirements for underground storage 
tanks. 
    Sec. 240.  Minnesota Statutes 1984, section 116C.69, 
subdivision 3, is amended to read: 
    Subd. 3.  [FUNDING; ASSESSMENT.] The board shall finance 
its base line studies, general environmental studies, 
development of criteria, inventory preparation, monitoring of 
conditions placed on site certificates and construction permits, 
and all other work, other than specific site and route 
designation, from an assessment made quarterly, at least 30 days 
before the start of each quarter, by the board against all 
utilities.  The assessment shall also include an amount 
sufficient to cover 60 percent of the costs to the pollution 
control agency of developing the acid deposition control plan 
required by sections 116.42 to 116.45; this amount shall be 
certified to the board by the executive director of the 
pollution control agency.  Each share shall be determined as 
follows:  (1) the ratio that the annual retail kilowatt-hour 
sales in the state of each utility bears to the annual total 
retail kilowatt-hour sales in the state of all such utilities, 
multiplied by 0.667, plus (2) the ratio that the annual gross 
revenue from retail kilowatt-hour sales in the state of each 
utility bears to the annual total gross revenues from retail 
kilowatt-hour sales in the state of all such utilities, 
multiplied by 0.333, as determined by the board.  The assessment 
shall be credited to the general special revenue fund and shall 
be paid to the state treasury within 30 days after receipt of 
the bill, which shall constitute notice of said assessment and 
demand of payment thereof.  The total amount which may be 
assessed to the several utilities under authority of this 
subdivision shall not exceed the sum of the annual budget of the 
board for carrying out the purposes of this subdivision plus 60 
percent of the annual budget of the pollution control agency for 
developing the plan required by sections 116.42 to 116.45.  The 
assessment for the second quarter of each fiscal year shall be 
adjusted to compensate for the amount by which actual 
expenditures by the board and the pollution control agency for 
the preceding fiscal year were more or less than the estimated 
expenditures previously assessed. 
    Sec. 241.  Minnesota Statutes 1984, section 116C.71, is 
amended by adding a subdivision to read: 
    Subd. 14a.  [COUNCIL.] "Council" means the governor's 
nuclear waste council. 
    Sec. 242.  [116C.711] [NUCLEAR WASTE COUNCIL.] 
    Subdivision 1.  [ESTABLISHMENT.] The governor's nuclear 
waste council is established. 
    Subd. 2.  [MEMBERSHIP.] The council shall have at least 9 
members, consisting of: 
    (1) the commissioners of health, transportation, and 
natural resources, and the director of the pollution control 
agency;  
    (2) four citizen members appointed by the governor; 
    (3) the director of the Minnesota geological survey; 
    (4) one additional citizen from each potentially impacted 
area may be appointed by the governor if potentially impacted 
areas are designated in Minnesota; and 
    (5) one Indian who is an enrolled member of a federally 
recognized Minnesota Indian tribe or band may be appointed by 
the governor if potentially impacted areas are designated in 
Minnesota and if those areas include Indian country as defined 
in United States Code, title 18, section 11.54. 
    At least two members of the council must have expertise in 
the earth sciences. 
    Subd. 3.  [CHAIRPERSON.] A chairperson shall be appointed 
by the governor from the members of the council. 
    Subd. 4.  [ADVISORY TASK FORCE.] The council may create 
advisory task forces under section 15.014, as are necessary to 
carry out its responsibilities under chapter 116C. 
    Subd. 5.  [MEMBERSHIP REGULATION.] Section 15.059 governs 
terms, compensation, removal, and filling of vacancies of 
members appointed by the governor.  Section 15.059, subdivision 
5, does not govern the expiration date of the council. 
    Sec. 243.  [116C.712] [POWERS AND DUTIES.] 
    Subdivision 1.  [DUTY.] The council's duty is to monitor 
the federal high-level radioactive waste disposal program under 
the Nuclear Waste Policy Act, Public Law Number 97-425 and 
advise the governor and the legislature on all policy issues 
relating to the federal high-level radioactive waste disposal 
program. 
    Subd. 2.  [EXPIRATION DATE.] The council terminates when 
the department of energy eliminates Minnesota from further 
siting consideration for disposal of high-level radioactive 
waste. 
    Subd. 3.  [COUNCIL STAFF.] Staff support for council 
activities must be provided by the state planning agency.  State 
departments and agencies must cooperate with the council in the 
performance of its duties.  Upon the request of the chairperson 
of the council, the governor may, by order, require a state 
department or agency to furnish assistance necessary to carry 
out the council's functions under chapter 116C. 
    Subd. 4.  [FEDERAL AND OTHER FUNDS.] The chairperson of the 
council may apply for, receive, and expend money made available 
from federal sources or other sources for the purpose of 
carrying out the council's responsibilities under chapter 116C. 
    Sec. 244.  Minnesota Statutes 1984, section 116C.723, is 
amended to read: 
    116C.723 [DISPOSAL STUDIES CONSULTATION AND COOPERATION 
AGREEMENT.] 
    Subdivision 1.  [REQUIREMENT.] Upon notice from the 
department of energy that Minnesota contains a potentially 
impacted area, the chairperson of the council shall negotiate a 
consultation and cooperation agreement with the federal 
government. 
    Subd. 2.  [DISPOSAL STUDIES.] Unless the state has executed 
a consultation and cooperation agreement, a person may not make 
a study or test of a specific area or site related to disposal 
including an exploratory drilling, a land survey, an aerial 
mapping, a field mapping, a waste suitability study, or other 
surface or subsurface geologic, hydrologic, or environmental 
testing or mapping.  
    Sec. 245.  Minnesota Statutes 1984, section 116C.724, is 
amended to read: 
    116C.724 [CONSULTATION AND COOPERATION AGREEMENT FIELD 
INVESTIGATIONS, TESTS, AND STUDIES.] 
    Subdivision 1.  [REQUIREMENT.] Upon notice from the 
department of energy that Minnesota contains a potentially 
impacted area, the board shall negotiate a consultation and 
cooperation agreement with the federal government.  
    Subd. 2.  [CONDITIONS DRILLING.] (a) The consultation and 
cooperation agreement shall include but not be limited to the 
conditions specified in this subdivision.  
    (b) A permit shall be required obtained from the 
environmental quality board, in accordance with chapter 14, for 
all any geologic and hydrologic drilling related to disposal.  
Conditions of obtaining and retaining the permit shall require 
must be specified by rule and must include: 
    (1) compliance with state drilling and drill hole 
restoration regulations as an exploratory boring under chapter 
156A;  
    (2) proof that access to the test site has been obtained by 
a negotiated agreement or other legal process;  
    (3) payment by the permittee to pay of a fee covering the 
costs of processing and monitoring drilling activities;  
    (4) unrestricted access by the commissioner of health, the 
commissioner of natural resources, the director of the pollution 
control agency, the director of the Minnesota geological survey, 
the county health officer, and their employees and agents to the 
drilling sites to inspect and monitor the drill holes, drilling 
operations, and abandoned sites, and to sample air and water 
that may be affected by drilling; 
    (5) submission of splits or portions of a core sample, 
requested by the commissioner of natural resources or director 
of the Minnesota geological survey, except that the commissioner 
or director may accept certified data on the sample in lieu of a 
sample if certain samples are required in their entirety by the 
permittee; and 
    (6) that a sample submitted may become property of the 
state.  
    (c) Subd. 3.  [OTHER REQUIREMENTS.] (a) A person who 
conducts geologic, hydrologic, or geophysical testing or studies 
shall provide unrestricted access to both raw and interpretive 
data to the chairman and the director of the Minnesota 
geological survey or their designated representatives.  The raw 
and interpretive data includes core samples, well logs, water 
samples and chemical analyses, survey charts and graphs, and 
predecisional reports.  Studies and data shall be made available 
within 90 30 days of a formal request by the chairman.  
    (d) (b) A person proposing to investigate shall hold at 
least one public meeting before a required permit is issued, and 
during the investigation at least once every six three months, 
during the investigation within the potentially impacted area.  
The meetings shall provide the public with current information 
on the progress of the investigation.  The person investigating 
shall respond in writing to the environmental quality board 
about concerns and issues raised at the public meetings.  
    (e) (c) Before a person engages in negotiations regarding 
property interests in land or water, or permitting activities, 
the person shall notify the chairman in writing.  Copies of 
terms and agreements shall also be provided to the chairman. 
    Sec. 246.  Minnesota Statutes 1984, section 116J.36, 
subdivision 6, as amended by Laws 1985, chapter 289, section 8, 
is amended to read:  
    Subd. 6.  [LOANS, DISTRICT HEATING AND QUALIFIED ENERGY 
IMPROVEMENTS.] Upon the recommendation of the authority pursuant 
to subdivision 8, the commissioner of finance shall make loans 
to municipalities on the following terms:  
    (a) In the case of loans for design costs, the maximum 
amount of the loan shall be limited by the provisions of this 
clause.  For cities of the first class and counties containing a 
city of the first class, individually or through the exercise of 
joint powers agreements, the amount of the loan shall not exceed 
40 percent of the design costs.  For counties containing one 
city of the first class not exceeding 100,000 inhabitants, the 
amount of the loan for that portion of the county excluding the 
city of the first class shall not exceed 80 90 percent of the 
design costs.  For cities of the second, third and fourth class, 
and other municipalities, the amount of the loan shall not 
exceed 90 percent of the design costs;  
    (b) In the case for loans for construction costs, a 
municipality must demonstrate that all design activities have 
been completed; that the project or improvement is economically 
and technologically feasible; that the district heating system 
or qualified energy improvement will be constructed, and that it 
has made adequate provisions to assure proper and efficient 
operation and maintenance of the project or improvement.  For 
cities of the first class and counties containing a city of the 
first class, individually or through the exercise of joint 
powers agreements, the amount of the loan shall be up to 50 
percent of the construction costs.  For counties containing one 
city of the first class not exceeding 100,000 inhabitants, the 
amount of the loan for that portion of the county excluding the 
city of the first class shall not exceed 80 90 percent of the 
construction costs.  For cities of the second class, the amount 
of the loan shall be up to 80 percent of the construction 
costs.  For cities of the third or fourth class, and other 
municipalities, the amount of the loan shall be up to 90 percent 
of the construction costs.  
    (c) A loan made pursuant to this section is repayable over 
a period of not more than 20 years from the date the loan is 
made.  Interest shall accrue from the date of the loan at a rate 
of interest assigned at the date of loan commitment, but the 
first payment of interest shall not be due until one year after 
the loan was made.  Principal payments shall begin not more than 
five years after receipt of the loan on a level payment 
schedule.  The loan may be amortized in accordance with 
repayment schedules not exceeding 25 years in length.  Any 
outstanding balance of the principal at the end of the repayment 
period must be repaid along with the final scheduled payment.  
Interest attributable to the first year of deferred payment 
shall be amortized in equal periodic payments over the remainder 
of the term of the loan.  For each loan, the initial deposit to 
the state bond fund required by section 16A.65, subdivision 1, 
shall be made by the commissioner of finance, and no loan may be 
refused solely because the municipality does not provide the 
initial deposit.  
    (d) The authority may also pledge a segregated portion of 
the energy development fund to guarantee or insure bonds and 
notes, or the interest rate thereon, issued by the commissioner 
of finance on behalf of the state of Minnesota for purposes of 
section 116J.36 or 116J.37. 
    Sec. 247.  Minnesota Statutes 1984, section 116J.76, is 
amended to read: 
    116J.76 [GENERAL FUNCTIONS; POWERS AND DUTIES.] 
    The bureau, by and through the director or his duly 
authorized employees, shall have the following functions, 
powers, and duties:  
    (a) Providing comprehensive information on licenses 
required for business undertakings, projects, and activities in 
the state and making the information available to applicants and 
other persons;  
    (b) Providing interested persons with an opinion as to the 
number, kind, and source of required licenses and potential 
difficulties in obtaining the licenses, based on a review of a 
potential applicant's business concept at an early stage in its 
planning;  
    (c) Developing with the assistance of other departments a 
master application procedure to expedite the identification and 
processing of these licenses;  
    (d) Facilitating or recommending consolidation of hearings 
required pursuant to licensing applications when feasible and 
advantageous;  
    (e) Encouraging and facilitating the participation of 
federal and local government agencies in licensing coordination; 
    (f) Making recommendations for eliminating, consolidating, 
simplifying, expediting, or otherwise improving licensing 
procedures affecting business undertakings; and 
    (g) Serving as an advocate for small business license 
applicants with state, federal, and local agencies in the 
process of applying for licenses and complying with licensing 
standards and requirements; and 
    (h) Adopting rules, procedures, instructions, and forms as 
are required to carry out the functions, powers, and duties 
imposed upon the bureau by sections 116J.73 to 116J.86. 
    Sec. 248.  [116J.94] [COUNCIL ON BIOTECHNOLOGY.] 
    Subdivision 1.  [MEMBERSHIP.] The council on biotechnology 
consists of 15 voting members appointed by the commissioner of 
energy and economic development as follows:  six members 
representing public and private post-secondary education, seven 
members of the business or financial community, and two members 
representing state agencies. 
    Subd. 2.  [TERMS, COMPENSATION, EXPIRATION.] Terms, 
compensation, and removal of members and expiration of the 
council are governed by section 15.059. 
    Subd. 3.  [STAFF.] The council shall hire an executive 
director in the unclassified service.  The commissioner of 
energy and economic development shall provide the council with 
administrative staff and other administrative support. 
     Subd. 4.  [DUTIES.] (a) The council shall develop a 
strategic plan to facilitate economic expansion in the state by 
encouraging biotechnology-related developments.  The plan must 
include recommendations for legislation required to encourage 
biotechnology-related development and must be submitted to the 
legislature by December 1, 1986. 
    (b) The council shall advise the governor, legislature, 
other governmental units, and institutions of higher education 
on matters relating to biotechnology that may affect the state 
and its citizens. 
    (c) The council shall develop a long-range biotechnology 
strategy for the state. 
    (d) The council shall recommend activities needed to 
promote economic development through biotechnology, including 
the needs of higher education and business. 
    (e) The council shall facilitate the interaction and 
information exchange on biotechnology among the business and 
financial communities and the state's higher education 
institutions. 
    (f) The council may accept gifts and grants in furtherance 
of its duties. 
    Sec. 249.  Minnesota Statutes 1984, section 116M.03, 
subdivision 17, is amended to read:  
    Subd. 17.  [FUNDS.] "Funds" means the group of funds 
controlled by the authority, including the economic development 
fund created by section 116M.06, subdivision 4, the energy loan 
insurance fund account created by section 116M.11, and the 
energy development fund account created by section 116M.12, and 
other accounts created to reflect the money deposited in the 
state treasury and under the control of the authority. 
    Sec. 250.  Minnesota Statutes 1984, section 116M.03, is 
amended by adding a subdivision to read:  
    Subd. 27.  [COST EFFECTIVE.] Except for qualified energy 
projects for conservation of energy, "cost effective" means that 
the present value of a project's benefits exceeds the present 
value of its costs over the life of the project.  Only the costs 
and benefits that can be quantified in dollars may be included 
in determining whether a project is cost-effective.  The 
discount rate used in determining present value must include the 
time value and incremental carrying cost of money.  For 
qualified energy projects for conservation of energy, a project 
is cost-effective when it has a payback period of ten years or 
less and the payback period is less than the useful life of the 
project. 
    Sec. 251.  Minnesota Statutes 1984, section 116M.04, 
subdivision 8a, is amended to read: 
    Subd. 8a.  The energy and economic development authority 
shall be named as an assignee of the rights of a state funded 
community development corporation on any loan or other evidence 
of debt provided by a community development corporation to a 
private enterprise.  The assignment of rights shall provide that 
it will be effective upon the dormancy or cessation of existence 
of the community development corporation.  "Dormancy" for the 
purpose of this section means the continuation of the 
corporation in name only without any functioning officers or 
activities.  Upon the cessation of the activities of a state 
funded community development corporation, any assigned moneys 
paid to the energy and economic development authority shall be 
deposited into the community development corporation economic 
development fund to be used for the purposes as set out in 
chapter 116M.  
    Sec. 252.  Minnesota Statutes 1984, section 116M.04, 
subdivision 9, is amended to read: 
    Subd. 9.  Factors considered by the authority in approving 
a grant to a community development corporation should include 
the creation of employment opportunities, the maximization of 
profit and the effect on securing funds money from sources other 
than the state. 
    Sec. 253.  Minnesota Statutes 1984, section 116M.05, 
subdivision 8, is amended to read: 
    Subd. 8.  [REVOLVING FUND ACCOUNT.] The certified state 
development company may charge a one time processing fee up to 
the maximum allowed by the small business administration on a 
debenture issued for loan purposes.  In addition, a fee for 
servicing loans may be imposed up to the maximum allowed by the 
small business administration based on the unpaid balance of 
each debenture.  There is created in the state treasury a 
dedicated account in the economic development fund to receive 
these fees and into which these fees shall be deposited.  Moneys 
in the dedicated fund account are appropriated to the energy and 
economic development authority to pay the costs of 
administration of the program, compensate members of the board 
of directors pursuant to section 15.0575, subdivision 3, and to 
create and operate a pool of funds money for investment in 
projects which further the purposes of this section.  
    Sec. 254.  Minnesota Statutes 1984, section 116M.06, 
subdivision 2, is amended to read: 
    Subd. 2.  [USE OF FUNDS.] The authority may use the energy 
loan insurance fund account as provided in section 116M.11.  The 
authority may use the economic development fund in connection 
with small business loans, pollution control loans, and farm 
loans to provide financial assistance to eligible small 
businesses; it may use the economic development fund in 
connection with business loans when the loans are made as a part 
of the special assistance program under section 116M.07, 
subdivision 11; and the authority may use the energy development 
fund account in connection with energy loans to provide 
financial assistance to businesses; as follows: 
    (a) to provide loan guarantees or insurance, in whole or in 
part, to businesses in connection with business loans, small 
business loans, energy loans, farm loans, or pollution control 
loans;  
    (b) to provide direct loans to businesses in connection 
with business loans, small business loans, energy loans, farm 
loans, or pollution control loans;  
    (c) to participate in other investment programs as 
appropriate under the terms of this chapter and chapters 472 and 
474;  
    (d) to purchase loan packages made to businesses by 
financial institutions in the state in connection with business 
loans, small business loans, energy loans, farm loans, or 
pollution control loans;  
    (e) to enter into or to pay fees on insurance contracts, 
letters of credit, municipal bond insurance, surety bonds, or 
similar obligations and other agreements or contracts with 
financial institutions or providers of similar services;  
    (f) to guarantee or insure bonds and notes issued by the 
authority, in whole or in part; 
    (g) to make interest subsidy payments on behalf of eligible 
small businesses to be applied to the payment of interest on 
bonds or notes of the authority equal to the difference in 
interest payable on loans and the interest payable on bonds or 
notes of the authority where the proceeds of these bonds or 
notes are used to make or participate in making these loans;  
    (h) for any legal purpose or program of the authority, 
including without limitation the payment of the cost of issuing 
authority bonds and notes and authority administrative costs and 
expenses, but not for personnel costs of positions in the 
approved complement of the department or the authority.  
    In addition, the authority may use the economic development 
fund to purchase, lease, or license technology-related products 
for education or training or to participate in programs where 
technology-related products are purchased, leased, or licensed.  
    The authority may create separate accounts within any of 
the funds for use in accordance with the separate purposes 
listed in this section and may irrevocably pledge and allocate 
moneys on deposit in any of the funds to the accounts for the 
purposes.  The authority may make contracts with note and bond 
holders, trustees for them, financial institutions, or other 
persons interested in the disposition of moneys in the funds or 
their accounts with respect to the conditions upon which money 
in any fund or its accounts is to be held, invested, applied, 
and disposed of and the use of the fund and its accounts and the 
termination of accounts.  The authority may determine to 
leverage amounts in accounts to be used to guarantee or insure 
bonds and notes of the authority or loans to businesses and may 
covenant as to the rate of leveraging with holders of the 
authority's bonds and notes or any trustee for them, financial 
institutions, or other persons.  Money in the funds and their 
accounts shall, consistent with contracts with holders of the 
authority's bonds and notes or any trustee for them, financial 
institutions, or other interested persons, be invested in 
accordance with section 116M.08, subdivision 15, and the 
investment income from them, absent contractual provisions to 
the contrary, shall be added to and retained in the funds or 
their accounts if provided by the authority.  The repayments to 
the authority of any direct loans made by the authority from 
money in the funds or their accounts shall be paid by the 
authority into the particular fund that was used in conjunction 
with the loan being repaid, or, as provided by the authority, 
into an another account.  The authority may collect fees, 
initially or from time to time, or both, with respect to any 
direct loan it extends or any insurance or guarantee it grants.  
The authority may enter into contracts and security instruments 
with businesses, with bond and note holders or any trustee for 
them, or financial institutions or other persons to provide for 
and secure the repayment to the authority of money provided by 
the authority from the funds or their accounts for direct loans 
or which have been paid by the authority from the a fund or 
accounts account pursuant to an authority guarantee or insurance.
    The state covenants with all holders of the authority's 
bonds and notes, financial institutions, and other persons 
interested in the disposition of money in the funds or their 
accounts, which money the authority has irrevocably pledged and 
allocated for any authorized purpose described in this 
subdivision, that the state will not take any action to limit 
the effect of the pledge and allocation and will not take any 
action to limit the effect of contracts entered into as 
authorized in this subdivision with respect to the pledge and 
allocation and will not limit or alter the rights vested in the 
authority or the state to administer the application of money 
pursuant to the pledge and allocation and to perform its 
obligations under the contracts.  The authority may include and 
recite this covenant of the state in any of its bonds or notes 
benefitting from the pledge and allocation or contracts or 
related documents or resolutions.  
    Sec. 255.  Minnesota Statutes 1984, section 116M.06, 
subdivision 5, is amended to read: 
    Subd. 5.  [WASTE TIRE RECYCLING ACCOUNT.] There is created 
within the economic development fund a waste tire recycling 
account.  Money in the account is appropriated to the authority 
for the purpose of making waste tire recycling loans and grants. 
    Sec. 256.  Minnesota Statutes 1984, section 116M.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [LOANS; LIMITATIONS.] The authority may make or 
purchase or participate with financial institutions in making or 
purchasing small business loans not exceeding $1,000,000 in 
principal amount with respect to small business loans made or 
purchased by the authority and not exceeding $1,000,000 
principal amount with respect to the authority's share thereof 
when the authority participates in making or purchasing small 
business loans.  
    With respect to loans that the authority makes or purchases 
or participates with, the authority may determine or provide for 
their servicing, the percentage of authority participation, if 
any, the times the loans or participations shall be payable and 
the amounts of payment, their amount and interest rates, their 
security, if any, and other terms, conditions, and provisions 
necessary or convenient in connection with them and may enter 
into all necessary contracts and security instruments in 
connection with them.  The authority shall obtain the best 
available security for all loans.  The authority may provide for 
or require the insurance or guaranteeing of the loans or 
authority participations in whole or in part by the federal 
government or a department, agency, or instrumentality of it, by 
an appropriate account created with respect to the economic 
development fund in connection with business loans, small 
business loans, pollution control loans, and farm loans, and 
with respect to the energy development fund account in 
connection with energy loans, or by a private insurer.  In 
connection with making or purchasing business loans or 
participations in them, the authority may enter into commitments 
to purchase or participate with financial institutions or other 
persons upon the terms, conditions, and provisions determined by 
it.  Loans or participations may be serviced by financial 
institutions or other persons designated by the authority.  The 
dollar limitations contained in this subdivision do not apply to 
energy loans and loans insured under sections 116M.11 and 
116M.12.  
    Sec. 257.  Minnesota Statutes 1984, section 116M.07, 
subdivision 4, is amended to read: 
    Subd. 4.  [DIRECT FARM LOANS; LIMITATIONS.] The authority 
may make farm loans not exceeding $100,000 in principal amount, 
at interest rates and subject to terms determined by the 
authority, provided that each loan shall be made only from the 
proceeds of a bond or note payable in whole or part from the 
repayments of principal and interest on the loan.  The loans may 
also be guaranteed or insured by money on deposit in the 
economic development fund or any special account of it, and may 
be secured by reserve funds accounts and other collateral and 
available money as determined by the authority.  The authority 
may enter into all necessary contracts and security instruments 
in connection with them.  The limitation on loan amounts in this 
subdivision does not apply to any other loan authorized under 
the Minnesota Energy and Economic Development Authority Act.  
    Sec. 258.  Minnesota Statutes 1984, section 116M.07, 
subdivision 8, is amended to read: 
    Subd. 8.  [POLLUTION CONTROL LOANS.] The authority may make 
or purchase or participate in making or purchasing pollution 
control loans in any amount, which may be secured in whole or 
part by the guarantee or insurance of the federal government or 
any federal department, agency, or instrumentality, by a private 
insurer, from guarantees or insurance provided by the economic 
development fund or any special account of it, by reserves, 
moneys, funds, or other collateral required by the authority or 
any combination of the foregoing.  To the extent consistent with 
this subdivision, the authority may make or purchase or 
participate in the making or purchasing of pollution control 
loans in the manner provided in subdivision 2 or 4 with respect 
to business loans.  
    Sec. 259.  Minnesota Statutes 1984, section 116M.07, 
subdivision 9, is amended to read: 
    Subd. 9.  [HAZARDOUS WASTE PROCESSING FACILITY LOANS.] The 
authority may make, purchase, or participate in making or 
purchasing hazardous waste processing facility loans in any 
amount, and may enter into commitments therefor.  A private 
person proposing to develop and operate a hazardous waste 
processing facility is eligible to apply for a loan under this 
subdivision.  Applications must be made to the authority.  The 
authority shall forward the applications to the waste management 
board for review pursuant to section 115A.162.  If the waste 
management board does not certify the application, the authority 
may not approve the application nor make the loan.  If the waste 
management board certifies the application, the authority shall 
approve the application and make the loan if funds are money is 
available for it and if the authority finds that:  
    (1) development and operation of the facility as proposed 
by the applicant is economically feasible;  
    (2) there is a reasonable expectation that the principal 
and interest on the loan will be fully repaid; and 
    (3) the facility is unlikely to be developed and operated 
without a loan from the authority.  
    The authority and the waste management board shall 
establish coordinated procedures for loan application, 
certification, and approval.  
    The authority may use the economic development fund to 
provide financial assistance to any person whose hazardous waste 
processing facility loan application has been certified by the 
waste management board and approved by the authority, and for 
this purpose may exercise the powers granted in section 116M.06, 
subdivision 2, with respect to any loans made or bonds issued 
under this subdivision regardless of whether the applicant is an 
eligible small business.  
    The authority may issue bonds and notes in the aggregate 
principal amount of $10,000,000 for the purpose of making, 
purchasing, or participating in making or purchasing hazardous 
waste processing facility loans.  This amount is in addition to 
any other authority to issue bonds and notes under this chapter. 
    The authority may adopt emergency rules under sections 
14.29 to 14.36 to implement the loan program under this 
subdivision.  Emergency rules adopted by the authority remain in 
effect for 360 days or until permanent rules are adopted, 
whichever occurs first.  
    Sec. 260.  Minnesota Statutes 1984, section 116M.07, 
subdivision 11, is amended to read: 
    Subd. 11.  [SPECIAL ASSISTANCE PROGRAM.] (a) The authority 
may operate a special assistance program and may designate 
certain businesses as being in need of special assistance.  In 
connection with the special assistance program the authority may 
borrow money and may issue negotiable bonds and notes in 
accordance with section 116M.08, subdivisions 11 and 12.  
Notwithstanding any provision to the contrary in section 
116M.08, subdivision 11, the aggregate principal amount of the 
authority's bonds and notes outstanding at any one time and 
issued in connection with the special assistance program, 
excluding the amount satisfied and discharged by payment and 
deducting amounts held in debt service reserve funds accounts 
and amounts used to make loans guaranteed or insured by the 
federal government or a department, agency, or instrumentality 
of the federal government or by a private insurer or guarantor 
authorized to do business in the state of Minnesota and 
acceptable to the authority, shall not exceed $10,000,000.  
    (b) No business shall be eligible to receive special 
assistance unless the authority has first passed a resolution 
designating the business as being in need of special 
assistance.  The resolution shall include findings that the 
designation and receipt of the special assistance will be of 
exceptional benefit to the state of Minnesota in that at least 
three of the following criteria are met:  
    (1) in order to expand or remain in Minnesota, the business 
has demonstrated that it is unable to obtain suitable financing 
from other sources;  
    (2) special assistance will enable a business not currently 
located in Minnesota to locate a facility within Minnesota which 
directly increases the number of jobs within the state;  
    (3) the business will create or retain significant numbers 
of jobs within a community in Minnesota;  
    (4) the business has a significant potential for growth in 
jobs or economic activities within Minnesota within the ensuing 
five-year period; and 
    (5) the business will maintain a significant level of 
productivity within Minnesota within the ensuing five-year 
period.  
    (c) Special assistance may include:  
    (1) a business loan;  
    (2) a small business loan; or 
    (3) use of moneys in the economic development fund to 
provide financial assistance to businesses in accordance with 
section 116M.06, subdivision 2, except that section 116M.06, 
subdivision 2, clause (g), shall apply only to eligible small 
businesses. 
    Sec. 261.  Minnesota Statutes 1984, section 116M.07, 
subdivision 13, is amended to read: 
    Subd. 13.  [LOANS TO LENDERS OF FARM LOANS.] The authority 
may make to financial institutions loans-to-lenders to 
provide funds money to lenders to make or participate in making, 
or to reimburse lenders for having made or participating in 
having made, farm loans of a nature and for purposes as may be 
approved by the authority.  In connection with a loan to a 
lender, the authority may adopt a plan for the various 
loan-to-lender programs it may determine to pursue.  In 
connection with a loan-to-lender program, in addition to any 
other powers the authority has, the authority has the following 
powers:  
    (a) The authority may limit the type of loan to be included 
within a loan-to-lender program and may specify the necessary 
characteristics of loans to be included in the program.  
    (b) The authority may specify the type of lenders that may 
participate in a loan-to-lender program.  
    (c) The authority may invest in, purchase, participate in 
the purchase, make commitments for the purchase or participation 
in the purchase, and take assignments from lenders of loans.  
    (d) The authority may make loans and commitments for 
loans-to-lenders.  
    (e) The authority may require that no loan or interest in a 
loan purchased from a lender is eligible for purchase or 
commitment to purchase by the authority unless, at or before the 
time of transfer of the loan to the authority, the lender 
certifies that in its judgment the loan would in all respects be 
a prudent investment at the purchase price paid.  
     (f) The authority may require, as a condition of a loan to 
a lender, that the lender invests the proceeds of the loan to a 
lender in loans of a given type, nature, and purpose and upon 
the terms and conditions and secured as the authority may 
require. 
      (g) The authority may require, as a condition of purchase 
or commitment to purchase loans or interest in loans, that these 
loans are made upon the terms and conditions and secured as the 
authority may require, and that the proceeds of the purchase, or 
their equivalent, be invested in loans upon the terms and 
conditions and secured as the authority may require.  
     (h) In conjunction with the purchase of these loans or 
interest in these loans from lenders, the authority may require 
the lender to furnish collateral security in an amount as the 
authority shall determine to be necessary to assure the payment 
of these loans and interest in these loans as the loans become 
due.  This collateral security may consist of obligations, 
mortgages, or security interests satisfactory to the authority.  
     (i) The authority may require that each loan to a lender is 
a general obligation of the lender and may be additionally 
secured as to payment of both principal and interest by a pledge 
of and lien upon collateral security in an amount and of the 
types as the authority determines to be necessary to assure the 
payment of these loans and the interest on these loans as the 
loans become due and payable. 
     (j) Subject to any agreement with holders of bonds, the 
authority may collect, enforce the collection of, and foreclose 
on any collateral required by (h) and (i) of this subdivision 
and acquire or take possession of the collateral and sell it at 
public or private sale, with or without public bidding, and 
otherwise deal with the collateral as may be necessary to 
protect the interest of the authority in the collateral. 
      (k) In addition to the other powers granted by (j), the 
authority may, with respect to loan purchases and 
loans-to-lenders, collect and pay reasonable fees and charges 
and establish the terms and conditions of loan purchases and 
loans-to-lenders, including, without limitation, terms and 
conditions as to:  
     (1) reinvestment and commitments to reinvest by lenders of 
the proceeds of loan purchase or loans;  
     (2) the type, term, interest rate, purchase price, and 
conditions of loans to be purchased by the authority and of 
loans to be made by lenders;  
     (3) the warranties, representations, and services of 
lenders;  
     (4) restrictions as to the interest rates of loans or the 
return realized from loans to protect against the realization by 
lenders of excessive financial returns or benefits as determined 
by prevailing market conditions;  
     (5) consent to the modification of the rate of interest, 
time of payment of an installment of principal or interest, or 
other terms of a loan, loan-to-lender, or agreement of any kind 
to which the authority is a party;  
     (6) include in a loan or loan-to-lender the amounts 
necessary to pay financing charges, consultant, advisory, and 
legal fees, and other expenses, including interest charges, as 
are necessary or incidental to the loan or loan-to-lender;  
     (7) make and execute agreements, contracts, and other 
instruments necesssary or convenient in accordance with the 
provisions of this subdivision, including contracts with any 
person, firm, public corporation, governmental agency, or other 
entity; and 
     (8) other matters related to the purchases of loans and 
loans-to-lenders deemed necessary by the authority to accomplish 
the purposes of this subdivision.  
     (l) The authority may require in the case of a lender that 
any required collateral is lodged with a bank or trust company, 
located either within or outside the state, designated by the 
authority as custodian for the collateral.  In the absence of 
this requirement, the authority may require that each lender 
enters into an agreement with the authority, that contains 
provisions as the authority deems necessary to identify, 
maintain, and service the collateral, and that provides that the 
lender holds the collateral as trustee for the benefit of the 
authority and is held accountable as the trustee of an express 
trust for the application and disposition of the collateral, 
including the income and proceeds from the collateral, solely 
for the uses and purposes as provided in the agreement.  A copy 
of the agreement and any revisions or supplements to it, which 
revisions or supplements may, among other things, add to, delete 
from, or substitute items of collateral pledged by the 
agreement, must be filed with the secretary of state to perfect 
the security interest of the authority in the collateral.  No 
filing, recording, possession, or other action under article 9 
of the uniform commercial code, or any other law of this state 
may be required to perfect the security interest of the 
authority in the collateral.  The security interest of the 
authority in the collateral is deemed perfected, and the trust 
for the benefit of the authority so created is binding on and 
after the time of the filing with the secretary of state against 
all parties having prior unperfected or subsequent security 
interests or claims of any kind in tort, in contract, or 
otherwise against the lender.  The authority may also establish 
additional requirements as it deems necessary with respect to 
the pledging, assigning, setting aside, or holding of collateral 
and the making of substitutions for the collateral or additions 
to the collateral and the disposition of income and receipts 
from the collateral.  
    Sec. 262.  Minnesota Statutes 1984, section 116M.08, 
subdivision 11, is amended to read: 
    Subd. 11.  It may borrow money to carry out and effectuate 
its purposes and may issue its negotiable bonds or notes as 
evidence of any such borrowing in accordance with sections 
462A.08 to 462A.13, 462A.16 and 462A.17, all with the force and 
effect stated and the incidental powers granted and duties 
imposed in those sections.  The bonds and notes may be issued 
pursuant to a trust indenture that is substantially identical to 
a resolution pursuant to which the authority issues bonds and 
notes as provided in sections 462A.08 to 462A.13, 462A.16, and 
462A.17, except that the authority may pledge money and 
securities to a trustee for the security of the holders of bonds 
and notes.  The authority may refund bonds and notes and may 
guarantee or insure its bonds and notes in whole or in part with 
money from the funds or an account created by the authority for 
that purpose.  The aggregate principal amount of the authority's 
bonds and notes outstanding at any one time, excluding the 
amount satisfied and discharged by payment or provision for 
payment in accordance with their terms, and deducting amounts 
held in debt service reserve funds accounts therefor and amounts 
used to make loans guaranteed or insured by the federal 
government or a department, an agency or instrumentality of the 
federal government or by a private insurer or guarantor 
authorized to do business in the state of Minnesota and 
acceptable to the authority, shall not exceed $30,000,000 unless 
authorized by another law.  
    Sec. 263.  Minnesota Statutes 1984, section 116M.08, 
subdivision 12, is amended to read: 
    Subd. 12.  It may issue and sell bonds, notes, and other 
obligations payable solely from particular moneys, assets, or 
revenues derived from its programs, or any loan, notwithstanding 
section 462A.08, subdivision 3.  Obligations issued to 
participate in making or purchasing loans shall be payable 
solely from revenues derived by the authority from repayments of 
these loans and from enforcement of the security therefor, or 
from a debt service reserve fund account or funds accounts, or 
from a general reserve fund account or from a segregated portion 
thereof, or from other funds money or security specifically 
pledged by the authority, irrevocably pledged and appropriated 
to pay principal and interest due, for which other funds are 
money is not available.  A general reserve fund account is 
created and is eligible to receive direct appropriations from 
the state treasury or a transfer from any of the funds accounts 
as the authority may provide by resolution.  The authority may 
irrevocably pledge and appropriate all or a segregated portion 
of the general reserve fund account to pay principal and 
interest due on all or one or more series of its obligations for 
which other funds are money is not available, pursuant to the 
terms and conditions that the authority shall determine.  Until 
so pledged and appropriated by the authority the general reserve 
fund account shall not be available to pay principal and 
interest on the authority's obligations.  The authority may at 
its option provide by resolution that obligations issued to 
participate in making or purchasing loans be secured at the time 
of issuance in whole or in part by a debt service reserve fund 
account or funds accounts, a portion of the general reserve fund 
account segregated to secure one or more series of bonds, or the 
portion of the general reserve fund account not segregated to 
secure one or more series of bonds.  The operation of the debt 
service reserve fund account or funds accounts or a segregated 
portion of the general reserve fund account and other relevant 
terms or provisions shall be determined by resolution or 
indenture of the authority.  Obligations issued to make or 
purchase loans may be issued pursuant to an indenture of trust 
or a resolution of the authority.  It may pledge to holders of 
obligations, or to a trustee, repayments from the loans, any 
security or collateral for them, contract rights with respect to 
them, and any other funds money or security specifically pledged 
by the authority for them.  
    Sec. 264.  Minnesota Statutes 1984, section 116M.08, 
subdivision 14, is amended to read: 
    Subd. 14.  It may establish and collect reasonable interest 
and amortization payments on loans, and in connection therewith 
may establish and collect or authorize the collection of 
reasonable fees and charges or require funds money to be placed 
in escrow, sufficient to provide for the payment and security of 
its bonds, notes, commitments and other obligations and for the 
servicing thereof, to provide reasonable allowances for or 
insurance against losses which may be incurred and to cover the 
cost of issuance of obligations and technical, consultative, and 
project assistance services.  
    Sec. 265.  Minnesota Statutes 1984, section 116M.08, 
subdivision 15, is amended to read: 
    Subd. 15.  It may cause any funds money not required for 
immediate disbursement, including the general reserve fund 
account, to be invested in direct obligations of or obligations 
guaranteed as to principal and interest by the United States, or 
in insured savings accounts, up to the amount of the insurance, 
in any institution the accounts of which are insured by the 
federal savings and loan insurance corporation or to be 
deposited in a savings or other account in a bank insured by the 
federal deposit insurance corporation or to be invested in time 
certificates of deposit issued by a bank insured by the federal 
deposit insurance corporation and maturing within one year or 
less and in the investments described in section 11A.24, 
subdivision 4, except clause (d) of subdivision 4.  It may 
deposit funds money in excess of the amount insured with 
security as provided in chapter 118.  Notwithstanding the 
foregoing, it may invest and deposit funds money into accounts 
established pursuant to resolutions or indentures securing its 
bonds or notes in such investments and deposit accounts or 
certificates, and with such security, as may be agreed therein 
with the holders or a trustee for the holders. 
    Sec. 266.  Minnesota Statutes 1984, section 116M.10, 
subdivision 8, is amended to read: 
    Subd. 8.  [PLANNING AND REPORTS.] (a) The authority shall 
adopt a plan to use as the basis for its investment decisions.  
    (b) By the start of the 1984 legislative session, the 
authority shall have (1) identified various nongovernmental 
funding sources; (2) provided for the efficient administration 
of its affairs; (3) solicited public comment on its plans; and 
(4) prepared recommendations as to appropriate reserve and 
guarantee fund levels required by sections 116M.09 to 116M.13. 
    (c) The authority shall annually report not later than 
February 1 to the legislature.  The report should contain 
recommendations for legislation as necessary to better 
coordinate its activities and the energy activities of state 
government.  
    Sec. 267.  [116M.105] [ENERGY FUND.] 
    An energy fund is created in the state treasury under the 
control of the authority.  Money in the fund is appropriated to 
the authority to accomplish the authority's purposes. 
    Sec. 268.  Minnesota Statutes 1984, section 116M.11, is 
amended to read: 
    116M.11 [ENERGY LOAN INSURANCE PROGRAM.] 
    Subdivision 1.  [ENERGY LOAN INSURANCE FUND ACCOUNT.] An 
energy loan insurance fund account is created in the energy fund.
The fund account shall be used by the authority as a 
revolving fund account, and all money in the fund account is 
appropriated to the authority, for carrying out the provisions 
of this section with respect to loans insured under subdivision 
2.  
    Subd. 2.  [INSURANCE OF LOANS.] (a) [AUTHORIZATION.] The 
authority is authorized, upon application by a financial 
institution, to insure loans for cost-effective qualified energy 
projects as provided in this section; and under terms as the 
authority may prescribe by rule, to make commitments for the 
insuring of loans prior to the date of their execution or 
disbursement.  In the event the authority shall determine that 
the energy loan insurance fund account is or will be depleted in 
connection with the use of the fund account as authorized by the 
act which has been approved or given preliminary approval by the 
authority, then the authority may by resolution transfer money 
from the energy development fund account created pursuant to 
section 116M.12.  
    (b) [ELIGIBILITY REQUIREMENTS.] The authority may by rule 
establish requirements for energy loans to be eligible for 
insurance under this section, relating to:  
    (1) maximum principal amount, amortization schedule, 
interest rate, delinquency charges, and other terms;  
    (2) the portion of the loan to be insured;  
    (3) acceleration and other remedies;  
    (4) covenants regarding insurance, repairs, and maintenance 
of the project;  
    (5) conditions regarding subordination of the loan 
security, if any, of the project to other liens against the 
property;  
    (6) the aggregate principal amount of loans to be insured 
in relation to the reserves from time to time on hand in the 
insurance fund account, and priorities as to the loans to be 
insured; and 
    (7) any other matters determined by the authority.  
    The authority shall by rule establish criteria for 
analyzing the cost-effectiveness of projects.  
    (c) [CONCLUSIVE EVIDENCE OF INSURABILITY.] Any contract of 
insurance executed by the authority under this section shall be 
conclusive evidence of the eligibility of the loan for 
insurance, and the validity of any contract of insurance 
properly executed and in the hands of any approved lender shall 
not be contestable, except for fraud or misrepresentation on the 
part of the financial institution.  
    (d) [PREMIUMS.] The authority is authorized to fix premium 
charges for the insurance of loans under this section at levels 
which in its judgment, taking into account consideration other 
amounts available in the fund account, will be sufficient to 
cover and maintain a reserve for loan losses.  
    (e) [PROCEDURES UPON DEFAULT.] The authority may establish 
procedures to be followed by financial institutions and to be 
taken by the authority in the event of default upon an energy 
loan, including: 
    (1) time for filing claims;  
    (2) rights and interests to be assigned and documents to be 
furnished by the financial institution;  
    (3) principal and interest to be included in the claim; and 
    (4) conditions, if any, upon which the authority will pay 
the entire principal amount in default, after foreclosure and 
receipt of marketable title to the property.  
    Subd. 3.  [INVESTMENT INTEREST.] All interest and profits 
accruing from investment of the fund's account's money shall be 
credited to and be a part of the fund account, and any loss 
incurred in the principal of the investments of the fund account 
shall be borne by the fund account.  
    Subd. 4.  [MAXIMUM AUTHORIZED INSURANCE.] The authority may 
not at any time issue insurance under this section aggregating 
in excess of an amount equal to the current balance contained in 
the fund account multiplied by ten.  
    Sec. 269.  Minnesota Statutes 1984, section 116M.12, 
subdivision 3, is amended to read: 
    Subd. 3.  [ENERGY DEVELOPMENT FUND ACCOUNT.] An energy 
development fund account is created in the energy fund and is 
eligible to receive appropriations.  The authority may 
irrevocably pledge and appropriate all or a segregated portion 
of the energy development fund account to make principal and 
interest payments when due on all or one or more series of its 
obligations for which other funds are money is not available, 
pursuant to the terms and conditions the authority shall 
prescribe.  The authority may otherwise operate the fund account 
according to section 116M.06.  In the event the authority shall 
determine that the energy development fund account is or will be 
depleted in connection with the use of the fund account as 
authorized by the act which has been approved or given 
preliminary approval by the authority, then the authority may by 
resolution transfer money from the energy loan insurance fund 
account created pursuant to section 116M.11.  
    Sec. 270.  Minnesota Statutes 1984, section 116M.12, 
subdivision 4, is amended to read: 
    Subd. 4.  [INVESTMENT INCOME.] All interest and profits 
accruing from investment of the energy development fund's 
account's moneys shall be credited to and be part of the energy 
development fund account, and any loss incurred in the principal 
of the investment of the reserve fund account shall be borne by 
the fund energy development account.  Assets of the energy 
development fund account shall be invested only in direct 
obligations or obligations of agencies of the United States or 
in insured depository accounts, up to the amount of the 
insurance, in any institution insured by an agency of the United 
States government, or in other obligations or depository 
accounts referred to in section 11A.24, subdivision 4, except 
clause (d) of that subdivision.  Other funds and revenues money 
of the authority shall be invested or deposited in the manner 
and with the security provided in bond or note resolutions or 
indentures under which obligations of the authority are issued 
for the program. 
    Sec. 271.  [139.20] [EQUIPMENT GRANTS.] 
    To be eligible for an equipment grant under sections 139.16 
to 139.19, a public broadcasting station must meet the 
eligibility criteria set forth in sections 139.18 and 139.19. 
    Sec. 272.  [139.21] [ADVISORY TASK FORCE.] 
    The commissioner of administration may appoint an advisory 
task force consisting of representatives of public broadcasting 
facilities to make recommendations on the distribution of money 
appropriated for grants to public television stations and 
noncommercial radio stations.  The commissioner may establish a 
procedure to audit the expenditure of this money. 
    Sec. 273.  Minnesota Statutes 1984, section 176.102, is 
amended by adding a subdivision to read: 
    Subd. 14.  [FEES.] The commissioner shall impose fees under 
section 16A.128 sufficient to cover the cost of approving and 
monitoring qualified rehabilitation consultants, consultant 
firms, and vendors of rehabilitation services. 
    Sec. 274.  Minnesota Statutes 1984, section 177.23, 
subdivision 4, is amended to read:  
    Subd. 4.  "Wage" means compensation due to an employee by 
reason of employment, payable in legal tender of the United 
States or, check on banks convertible into cash on demand at 
full face value or, except for instances of written objection to 
the employer by the employee, direct deposit to the employee's 
choice of demand deposit account, subject to allowances 
permitted by rules of the department under section 177.28. 
    Sec. 275.  Minnesota Statutes 1984, section 177.23, 
subdivision 7, is amended to read:  
    Subd. 7.  "Employee" means any individual employed by an 
employer but does not include:  
    (1) two or fewer specified individuals employed at any 
given time in agriculture on a farming unit or operation who are 
paid a salary; 
    (2) any individual employed in agriculture on a farming 
unit or operation who is paid a salary greater than the 
individual would be paid if the individual worked 48 hours at 
the state minimum wage plus 17 hours at 1-1/2 times the state 
minimum wage per week;  
    (3) an individual under 18 who is employed in agriculture 
on a farm to perform services other than corn detasseling or 
hand field work when one or both of that minor hand field 
worker's parents or physical custodians are also hand field 
workers; 
    (4) for purposes of section 177.24, an individual under 18 
who is employed as a corn detasseler; 
    (5) any staff member employed with on a seasonal basis by a 
nonprofit organization for work in an organized children's 
resident or day camp licensed with the state operating under a 
permit issued under section 144.72; 
    (6) any individual employed in a bona fide executive, 
administrative, or professional capacity, or a salesman who 
conducts no more than 20 percent of his sales on the premises of 
the employer; 
    (7) any individual who renders service gratuitously for a 
nonprofit organization; 
    (8) any individual who serves as an elected official for a 
political subdivision or who serves on any governmental board, 
commission, committee or other similar body, or who renders 
service gratuitously for a political subdivision; 
    (9) any individual employed by a political subdivision to 
provide police or fire protection services or employed by an 
entity whose principal purpose is to provide police or fire 
protection services to a political subdivision; 
    (10) any individual employed by a political subdivision who 
is ineligible for membership in the public employees retirement 
association under section 353.01, subdivision 2b, clause (a), 
(b), (d), or (i); 
    (11) any driver employed by an employer engaged in the 
business of operating taxicabs; 
    (12) any individual engaged in babysitting as a sole 
practitioner; 
    (13) for the purpose of section 177.25, any individual 
employed on a seasonal basis in a carnival, circus, or fair; 
    (14) any individual under 18 employed part-time by working 
less than 20 hours per workweek for a municipality as part of a 
recreational program; 
    (15) any individual employed by the state as a natural 
resource manager 1, 2, or 3 (conservation officer); 
    (16) any individual in a position for which the U.S. 
Department of Transportation has power to establish 
qualifications and maximum hours of service under United States 
Code, title 49, section 304; 
    (17) any individual employed as a seafarer.  The term 
"seafarer" means a master of a vessel or any person subject to 
the authority, direction, and control of the master who is 
exempt from federal overtime standards under United States Code, 
title 29, section 213(b)(6), including but not limited to 
pilots, sailors, engineers, radio operators, firefighters, 
watchmen, pursers, surgeons, cooks, and stewards; or 
    (18) any individual employed by a county in a single family 
residence owned by a county home school as authorized under 
section 260.094 if the residence is an extension facility of 
that county home school, and if the individual as part of his 
employment duties resides at the residence for the purpose of 
supervising children as defined by section 260.015, subdivision 
2; or 
    (19) nuns, monks, priests, lay brothers, lay sisters, 
ministers, deacons, and other members of religious orders who 
serve pursuant to their religious obligations in schools, 
hospitals, and other nonprofit institutions operated by the 
church or religious order. 
    Sec. 276.  Minnesota Statutes 1984, section 177.24, 
subdivision 3, is amended to read:  
    Subd. 3.  [SHARING OF GRATUITIES.] For purposes of this 
chapter, any gratuity received by an employee or deposited in or 
about a place of business for personal services rendered by an 
employee is the sole property of the employee.  No employer may 
require an employee to contribute or share a gratuity received 
by the employee with the employer or other employees or to 
contribute any or all of the gratuity to a fund or pool operated 
for the benefit of the employer or his employees.  This section 
does not prevent an employee from voluntarily and individually 
sharing his gratuities with other employees.  The agreement to 
share gratuities must be made by the employees free of any 
employer participation.  The commissioner may require the 
employer to pay restitution in the amount of the gratuities 
diverted.  If the records maintained by the employer do not 
provide sufficient information to determine the exact amount of 
gratuities diverted, the commissioner may make a determination 
of gratuities diverted based on available evidence and mediate a 
settlement with the employer. 
    Sec. 277.  Minnesota Statutes 1984, section 177.24, 
subdivision 4, is amended to read:  
    Subd. 4.  [UNREIMBURSED EXPENSES DEDUCTED.] Unreimbursed 
amounts which an employee is required to pay for the items 
listed below are subtracted from wages paid in calculating 
whether the wages meet the minimums set by subdivision 
1 Deductions, direct or indirect, from wages or gratuities not 
authorized by this subdivision may only be taken as authorized 
by sections 177.28, subdivisions 3 and 4, 181.06, and 181.79. 
Deductions, direct or indirect, for up to the full cost of the 
uniform or equipment as listed below, may not exceed $50.  No 
deductions, direct or indirect, may be made for the items listed 
below which when subtracted from wages would reduce the wages 
below the minimum wage: 
    (a) purchased or rented uniforms or specially designed 
clothing required by the employer, by the nature of the 
employment, or by statute as a condition of employment, which is 
not generally appropriate for use except in that employment;  
    (b) purchased or rented equipment used in employment, 
except tools of a trade, a motor vehicle, or any other equipment 
which may be used outside the employment;  
    (c) consumable supplies required in the course of that 
employment; 
    (d) travel expenses in the course of employment except 
those incurred in traveling to and from the employee's residence 
and place of employment. 
    Sec. 278.  Minnesota Statutes 1984, section 177.24, 
subdivision 5, is amended to read:  
    Subd. 5.  [EXPENSE REIMBURSEMENT.] An employer, at the 
termination of an employee's employment, must reimburse the full 
cost to the employee of amount deducted, directly or indirectly, 
for any of the items listed in subdivision 4 which he had to buy 
during employment.  When reimbursement is made, the employer may 
require the employee to surrender any existing items for which 
the employer provided reimbursement. 
    Sec. 279.  Minnesota Statutes 1984, section 177.27, is 
amended to read:  
    177.27 [POWERS AND DUTIES OF THE COMMISSIONER.] 
    Subdivision 1.  [EXAMINATION OF RECORDS.] The commissioner 
may enter during reasonable office hours or upon request and 
inspect the place of business or employment of any employer of 
employees working in the state, to examine and inspect books, 
registers, payrolls, and other records of any employer that in 
any way relate to wages, hours, and other conditions of 
employment of any employees.  The commissioner may transcribe 
any or all of the books, registers, payrolls, and other records 
as he deems necessary or appropriate and may question the 
employees to ascertain compliance with sections 177.21 to 
177.35.  The commissioner may investigate wage claims or 
complaints by an employee against an employer if the failure to 
pay a wage may violate Minnesota law or an order or rule of the 
department. 
    Subd. 2.  [SUBMISSION OF RECORDS; PENALTY.] The 
commissioner may require the employer of employees working in 
the state to submit to the commissioner photocopies, certified 
copies, or, if necessary, the originals of employment records 
which the commissioner deems necessary or appropriate.  The 
records which may be required include full and correct 
statements in writing, including sworn statements by the 
employer, containing information relating to wages, hours, 
names, addresses, and any other information pertaining to the 
employer's employees and the conditions of their employment as 
the commissioner deems necessary or appropriate.  
    The commissioner may require the records to be submitted by 
certified mail delivery or, if necessary, by personal delivery 
by the employer or a representative of the employer, as 
authorized by the employer in writing.  
    The commissioner may fine the employer up to $100 for each 
failure to submit or deliver records as required by this 
section.  This penalty is in addition to any penalties provided 
under section 177.32, subdivision 1.  
    Subd. 3.  [ADEQUACY OF RECORDS.] If the records maintained 
by the employer do not provide sufficient information to 
determine the exact amount of back wages due an employee, the 
commissioner may make a determination of wages due based on 
available evidence and mediate a settlement with the employer.  
    Subd. 4.  [COMPLIANCE ORDERS.] The commissioner may issue 
an order requiring an employer to comply with sections 177.21 to 
177.35, 181.032, 181.101, 181.13, 181.14, 181.145, and 181.79, 
or with any rule promulgated under section 177.28.  The 
department shall serve the order upon the employer or his 
authorized representative in person or by certified mail at the 
employer's place of business.  An employer who wishes to contest 
the order must file written notice of his objection to the order 
with the commissioner within ten days after being served with 
the order.  A public hearing must then be held in accordance 
with sections 14.57 to 14.70. 
    Subd. 4.  [MEDIATION.] The commissioner may investigate, 
mediate, and settle wage claims by an employee against an 
employer if the failure to pay any wage may violate Minnesota 
laws, rules, or department orders. 
    Subd. 5.  [CIVIL ACTIONS.] When an employee files a written 
request with the commissioner, the commissioner may commence a 
civil action in any court of competent jurisdiction for the 
benefit of the employee for appropriate relief with respect to a 
wage claim which the commissioner finds valid provided:  (1) the 
failure to pay the wage would constitute a violation of 
Minnesota laws, rules, or department orders, and (2) the wage 
claim does not exceed $300.  The employer shall pay all costs 
and disbursements allowed by the court and shall pay an 
assessment of ten percent of the amount of any awarded wage 
claim to the treasurer of the state of Minnesota.  In any action 
under this subdivision, no security for payment of costs may be 
required.  This section does not prevent an employee from 
prosecuting his own claim for wages The commissioner may bring 
an action in the district court where an employer resides or 
where the commissioner maintains an office to enforce or require 
compliance with orders issued under subdivision 4. 
    Subd. 6.  [ATTORNEY GENERAL TO COMMENCE ACTION EMPLOYER 
LIABILITY.] Upon the written request of the commissioner, the 
attorney general shall commence a civil action for appropriate 
relief against the employer as provided in subdivision 
5 Employers are liable to employees for back wages and 
gratuities as computed by the department or, if contested by the 
employer, as awarded in a public hearing.  The commissioner may 
establish escrow accounts for purposes of distributing back 
wages and gratuities.  In addition, hearing costs of up to ten 
percent of any back wages and gratuities awarded may be assessed 
against the employer by the administrative law judge and paid to 
the commissioner if the administrative law judge finds that the 
employer had no meritorious defense against the claim.  The 
penalty provided under this subdivision for failure to pay back 
wages and gratuities does not apply to compliance orders issued 
to an employer under this section before the effective date of 
this section.  This subdivision does not prevent an employee 
from prosecuting a claim for wages or gratuities.  
    Sec. 280.  Minnesota Statutes 1984, section 177.28, 
subdivision 4, is amended to read:  
    Subd. 4.  An employee who receives $35 or more per month in 
gratuities is a tipped employee.  An employer is entitled to a 
credit in an amount up to 20 percent of the minimum wage which a 
tipped employee receives; except that effective January 1, 1985, 
the credit is reduced to 15 percent; effective January 1, 1986, 
the credit is reduced to 10 percent; effective January 1, 1987, 
the credit is reduced to 5 percent; and effective January 1, 
1988, the credit is eliminated.  The credit against the wages 
due may not be taken unless at the time the credit is taken the 
employer has received a signed statement for that pay period 
from the tipped employee stating the amount of gratuities 
received during that pay period that he did receive and retain 
during that pay period all gratuities received by him in an 
amount equal to or greater than the credit applied against the 
wages due by his employer.  The statements shall be maintained 
by the employer as a part of his business records.  The employer 
may hold an employee's check until the signed statement for that 
period, stating the amount of gratuities, is received. 
    Sec. 281.  Minnesota Statutes 1984, section 177.32, 
subdivision 1, is amended to read:  
    Subdivision 1.  [MISDEMEANORS.] An employer who does any of 
the following is guilty of a misdemeanor:  
    (1) hinders or delays the commissioner in the performance 
of duties required under sections 177.21 to 177.35;  
    (2) refuses to admit the commissioner to the place of 
business or employment of the employer, as required by section 
177.27, subdivision 1; 
    (3) consistently and repeatedly fails to make, keep, and 
preserve records as required by section 177.30;  
    (4) falsifies any record; 
    (5) refuses to make any record available, or to furnish a 
sworn statement of the record or any other information as 
required by section 177.27;  
    (6) consistently and repeatedly fails to post a summary of 
sections 177.21 to 177.35 or a copy or summary of the applicable 
rules as required by section 177.31;  
    (7) pays or agrees to pay wages at a rate less than the 
rate required under sections 177.21 to 177.35; or 
    (8) otherwise violates any provision of sections 177.21 to 
177.35. 
    Sec. 282.  [179.81] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For the purposes of sections 282 
to 286, the terms defined in this section have the meanings 
given them. 
    Subd. 2.  [AREA LABOR-MANAGEMENT COMMITTEE.] "Area 
labor-management committee" or "committee" means a committee 
formed by and composed of multiple employers and multiple labor 
organizations, for the purpose of improving labor-management 
relations and enhancing economic development within the 
jurisdiction through labor-management cooperation.  
    Subd. 3.  [BUREAU.] "Bureau" means the bureau of mediation 
services. 
    Subd. 4.  [DIRECTOR.] "Director" means the director of the 
bureau of mediation services.  
    Sec. 283.  [179.82] [GRANT PROGRAM CREATED; APPLICATIONS.] 
    Subdivision 1.  [CREATION.] An area labor-management 
committee grant program is created within the bureau to be 
administered by the director.  
    Subd. 2.  [APPLICATIONS.] (a) Applications for area 
labor-management committee grants must be submitted to the 
bureau by October 15 of each year on a form developed by the 
director. 
    (b) The application must include a description of the area 
labor-management committee formed or to be formed consistent 
with the purposes of the area labor-management grant program, 
including an identification of the committee members and a brief 
description of the committee's existing or proposed operating 
procedures.  A copy of the committee bylaws or other written 
operating procedures must be submitted. 
    (c) The application must include a statement of the 
labor-management problem or issue existing in the committee's 
area of jurisdiction.  Grant applicants must document the 
problem using as much relevant data as is reasonably available, 
and must discuss the full range of impacts that the problem or 
issue is having upon the area or upon industry within the area.  
    (d) The application must include a statement of the 
approach to be used by the committee in solving the problem or 
dealing with the issue identified in paragraph (c) and an 
implementation plan setting forth the major steps to be taken 
and objectives sought in dealing with the problem or issue 
identified in paragraph (c), as well as a time table indicating 
when those steps will be taken and those objectives reached.  
    (e) The application must include a four-year financial plan 
detailing the amount of both state grant money and local, 
federal, and private sector money necessary for the applicant's 
program.  The plan must show the total amount of state funding 
necessary to carry out the committee's goals and objectives, and 
the total money from other sources expected to be raised each 
year.  The plan must be accompanied by a proposed committee 
budget, covering the life of the plan, detailing how all money, 
including state grant money, is to be expended.  
    Sec. 284.  [179.83] [ACTION ON APPLICATION.] 
    Subdivision 1.  [STANDARD FOR APPROVAL.] After October 15 
of each year, the director shall review the applications.  
Grants must be awarded on a competitive basis based on the 
appropriateness of the proposal, the attainability of the goals, 
the evidence of interest in the proposal among representatives 
of labor and management in the area within the committee's 
jurisdiction, and the thoroughness of the financial plan 
presented.  Successful applicants shall be notified of the award 
no later than December 1 of each year. 
    Subd. 2.  [NUMBER OF GRANTS AWARDED.] On the basis of the 
review conducted under subdivision 1, the director may award no 
more than three grants in each of the two years following the 
effective date of sections 282 to 286, provided that not more 
than five grants are awarded in the biennium following the 
effective date of those sections.  
    Sec. 285.  [179.84] [GENERAL CONDITIONS AND TERMS OF 
GRANTS.] 
    Subdivision 1.  [REQUIREMENTS.] For each grant awarded the 
director shall:  
    (1) require an approved work plan that establishes 
measurable goals and objectives for the committee within the 
committee's area of responsibility and that prohibits the 
committee from becoming involved in contract disputes, labor 
negotiations, or grievance procedures;  
    (2) establish a technical assistance delivery area outside 
the geographic area covered by the area labor-management 
committee;  
    (3) require the area labor-management committee to 
establish an approved technical assistance work plan for its 
external technical assistance delivery area; and 
    (4) annually review the operating performance of each area 
labor-management committee receiving state money under this 
program.  
    Subd. 2.  [WORK PLANS.] Regular work plans for each area 
labor-management committee must be directed toward improving 
labor-management relations within the area serviced by the 
committee.  Technical assistance work plans must provide for the 
establishment of new area labor-management committees within the 
committee's technical assistance delivery area.  Both types of 
work plans must provide for the following:  
    (1) information, resources, and materials on ways in which 
labor and management can work cooperatively to improve 
productivity and the quality of working life; 
    (2) educational programs such as seminars, workshops, and 
conferences on ways in which labor and management can work 
cooperatively to improve productivity and the quality of work 
life; 
    (3) technical assistance to individuals, groups of firms, 
unions, and governmental units that are interested in developing 
labor management committees; and 
    (4) promotion, support, and assistance in the organization, 
establishment, and operation of local or regional area 
labor-management committees. 
    Sec. 286.  [179.85] [FUNDING LIMITATIONS.] 
    A new or existing area labor-management committee may apply 
for a maximum grant of $100,000 per year.  A new or existing 
area labor-management committee may be awarded state grant 
money, and must provide money from other nonstate sources, in 
each of the four years covered by the financial plan in the 
following ratio of state and nonstate money:  in the first year, 
90 percent state and 10 percent nonstate; in the second year, 80 
percent state and 20 percent nonstate; in the third year, 50 
percent state and 50 percent nonstate; and in the fourth year, 
30 percent state and 70 percent nonstate.  In a grant to an 
existing or proposed area labor-management committee, $10,000 of 
the grant is designated and may only be used for technical 
assistance services within the technical assistance delivery 
area, both as specified by the director under section 285. 
    Sec. 287.  Minnesota Statutes 1984, section 180.03, 
subdivision 2, is amended to read: 
    Subd. 2.  Every person, firm or corporation that is or has 
been engaged in the business of mining or removing iron ore, 
taconite, semitaconite or other minerals except sand, crushed 
rock and gravel by the open pit method in any county which has 
appointed an inspector of mines pursuant to section 180.01 shall 
erect two inch by four inch mesh fencing a fence, barrier, 
appropriate signs, or combination of them, as directed by the 
inspector, along the outside perimeter of the excavation, open 
pit, or shaft of any mine in which mining operations have ceased 
for a period of six consecutive months or longer.  However, in 
residential and developed areas, along major roads, and in areas 
of hazardous conditions, the following described fencing must be 
erected, unless exempted by the county mine inspector under 
subdivision 4.  This fencing must consist of two-inch by 
four-inch mesh fencing; the top and bottom wire shall not be 
less than 9 gauge and the filler wire shall not be less than 11 
gauge.; the fencing shall be not less than five feet in height 
with two strands of barbed wire six inches apart affixed to the 
top of the fence.; and the fence posts shall be no more than ten 
feet apart.  In the case of open pit mines in which mining 
operations cease after November 1, 1979, and before March 1, 
1980, the fencing fence, barrier, signs, or combination of them 
shall be erected as soon as possible after March 1, 1980.  Where 
mining operations cease on or after March 1, 1980, the fencing 
fence, barrier, signs, or combination of them shall be erected 
forthwith.  In the case of open pit mines in which mining 
operations had ceased for a period of six consecutive months or 
longer before November 1, 1979, and not resumed, the fencing 
fence, barrier, signs, or combination of them shall be erected 
within seven years after November 1, 1979 two years from the 
current date.  Any fencing fence, barrier, signs, or combination 
of them, required by an inspector of mines pursuant to 
subdivision 3 or other applicable law, shall meet the standards 
of this section as a minimum.  This subdivision does not apply 
to any excavation, open pit, or shaft, or any portion thereof, 
exempted from its application by the commissioner of natural 
resources pursuant to laws relating to mineland reclamation, 
exempted from its application by the iron range resources and 
rehabilitation board under actions taken by the board, or 
exempted from its application by the county mine inspector 
pursuant to subdivision 4. 
    Sec. 288.  Minnesota Statutes 1984, section 180.03, 
subdivision 3, is amended to read: 
    Subd. 3.  When any mine is idle or abandoned it shall be 
the duty of the inspector of mines to notify the person, firm, 
or corporation that is or has been engaged in the business of 
mining to erect and maintain around all the shafts, caves, and 
open pits of such mines a fence or railing, barrier, appropriate 
signs, or combination of them, suitable to prevent persons or 
domestic animals from accidentally falling into these shafts, 
caves or open pits. If the person, firm or corporation that has 
been engaged in the business of mining no longer exists, the fee 
owner shall erect the fencing fence, barrier, or signs required 
by this section.  The notice shall be in writing and be served 
upon such person, firm, corporation or fee owner by certified 
mail. 
    Sec. 289.  Minnesota Statutes 1984, section 180.03, 
subdivision 4, is amended to read: 
    Subd. 4.  Upon written application, the county mine 
inspector may exempt from the requirements of subdivision 2, any 
abandoned excavation, open pit, or shaft which is fenced 
provided with fencing, barriers, appropriate signs, or 
combinations of them, in a manner that is reasonably similar to 
the standards set forth in subdivision 2, or which in his 
judgment does not constitute a safety hazard. 
    Sec. 290.  Minnesota Statutes 1984, section 180.10, is 
amended to read: 
    180.10 [REMOVAL OF FENCE; GUARD.] 
    Any workman, employee, or other person who shall open, 
remove, or disturb any fence, guard, barrier, or rail and not 
close or replace or have the same closed or replaced again 
around or in front of any shaft, test pit, chute, excavation, 
cave, or land liable to cave, injure, or destroy, whereby 
accident, injury, or damage results, either to the mine or those 
at work therein, or to any other person, shall be guilty of a 
misdemeanor; and, upon conviction thereof, punished by a fine of 
not exceeding $50 or imprisonment for not more than 60 days in 
the county jail for each and every such offense.  A workman, 
employee, or other person who, in regard to any fence, guard, 
barrier, or rail, does any of the acts prohibited by section 
609.52, commits theft of the fence, guard, barrier, or rail may 
be sentenced as provided in section 609.52. 
    Sec. 291.  [181.032] [REQUIRED STATEMENT OF EARNINGS BY 
EMPLOYER.] 
    At the end of each pay period, the employer shall give each 
employee an earnings statement in writing covering that pay 
period.  The earnings statement may be in any form determined by 
the employer but must include:  
    (a) the name of the employee;  
    (b) the hourly rate of pay (if applicable);  
    (c) the total number of hours worked by the employee unless 
exempt from chapter 177;  
    (d) the total amount of gross pay earned by the employee 
during that period;  
    (e) a list of deductions made from the employee's pay;  
    (f) the net amount of pay after all deductions are made; 
and 
    (g) the date on which the pay period ends. 
    An employer, who for the purpose of depriving an employee 
of wages to which the employee is entitled and in order to 
mislead the employee, furnishes to the employee a statement that 
the employer knows to be false is guilty of a misdemeanor. 
    Sec. 292.  [181.101] [WAGES; HOW OFTEN PAID.] 
    Every employer shall pay all wages due an employee at least 
once every 30 days on a regular pay day designated in advance by 
the employer, except that an employer may withhold an employee's 
check until the signed statement for that pay period stating the 
amount of gratuities is received, as provided in section 177.28, 
subdivision 4.  If wages due are not paid, the commissioner of 
labor and industry or the commissioner's representative may 
demand payment on behalf of an employee.  If payment is not made 
within ten days of demand, the commissioner may charge and 
collect the wages due and a penalty in the amount of the 
employee's average daily earnings at the rate agreed upon in the 
contract of employment, not exceeding 15 days in all, for each 
day beyond the ten day limit following the demand.  Money 
collected by the commissioner must be paid to the employee 
concerned.  This subdivision does not prevent an employee from 
prosecuting a claim for wages. 
    Sec. 293.  Minnesota Statutes 1984, section 181.79, 
subdivision 1, is amended to read:  
    Subdivision 1.  No employer shall make any deduction, 
directly or indirectly, from the wages due or earned by any 
employee, who is not an independent contractor, for lost or 
stolen property, damage to property, or to recover any other 
claimed indebtedness running from employee to employer, unless 
the employee, after the loss has occurred or the claimed 
indebtedness has arisen, voluntarily authorizes the employer in 
writing to make the deduction or unless the employee is held 
liable in a court of competent jurisdiction for the loss or 
indebtedness.  Such authorization shall not be admissible as 
evidence in any civil or criminal proceeding.  Any authorization 
for a deduction shall set forth the amount to be deducted from 
the employee's wages during each pay period. 
    A deduction, unless authorized in writing by the employee, 
may not be in excess of the amount established by law as subject 
to garnishment or execution on wages. 
    Any agreement entered into between an employer and an 
employee contrary to this section shall be void.  This section 
shall not apply to the following: 
    (a) in cases where a contrary provision in a collective 
bargaining agreement exists; 
    (b) any rules established by an employer for employees who 
are commissioned salespersons, where the rules are used for 
purposes of discipline, by fine or otherwise, in cases where 
errors or omissions in performing their duties exist; or 
    (c) in cases where an employee, prior to making a purchase 
or loan from the employer, voluntarily authorizes in writing 
that the cost of the purchase or loan shall be deducted from the 
employee's wages, at regular intervals or upon termination of 
employment. 
    Sec. 294.  Minnesota Statutes 1984, section 181A.04, 
subdivision 3, is amended to read:  
    Subd. 3.  No minor under the age of 16 shall be permitted 
to work any day before 7 a.m. or after 9:30 9:00 p.m. 
    Sec. 295.  Minnesota Statutes 1984, section 181A.12, 
subdivision 1, is amended to read:  
    Subdivision 1.  [FINES; PENALTY.] Any employer who hinders 
or delays the department or its authorized representative in the 
performance of its duties under sections 181A.01 to 181A.12 or 
refuses to admit the commissioner or his authorized 
representative to any place of employment or refuses to make 
certificates or lists available as required by sections 181A.01 
to 181A.12, or otherwise violates any provisions of sections 
181A.01 to 181A.12 or any rules issued pursuant thereto shall be 
assessed a fine to be paid to the commissioner for deposit in 
the general fund.  The fine may be recovered in a civil action 
in the name of the department brought in the district court of 
the county where the violation is alleged to have occurred or 
the district court where the commissioner has an office.  Fines 
are in the amounts as follows:  
     (a) employment of minors under the age of 14           
         (each employee)                                   $ 50 
     (b) employment of minors under the age of 16               
         during school hours while school is in session       
         (each employee)                                     50 
     (c) employment of minors under the age of 16               
         before 7:00 a.m. (each employee)                    50 
     (d) employment of minors under the age of 16               
         after 9:30 9:00 p.m.  
         (each employee)                                     50 
     (e) employment of minors under the age of 16               
         over eight hours a day (each employee)              50 
     (f) employment of minors under the age of 16               
         over 40 hours a week (each employee)                50 
     (g) employment of minors under the age of 18               
         in hazardous occupations hazardous or
         detrimental to their well-being as defined  
         by rule (each employee)                            100 
     (h) employment of minors under the age of 16               
         in hazardous occupations hazardous or
         detrimental to their well-being as defined 
         by rule (each employee)                            100 
     (i) minors under the age of 18 injured in                  
         hazardous employment (each employee)               500 
     (j) minors employed without proof of age                   
         (each employee)                                      5 
    An employer who refuses to make certificates or lists 
available as required by sections 181A.01 to 181A.12 shall be 
assessed a $500 fine. 
    An employer who engages in a consistent and repeated 
pattern of violations of sections 181A.01 to 181A.12 is also 
guilty of a gross misdemeanor. 
    Sec. 296.  Minnesota Statutes 1984, section 183.545, is 
amended by adding a subdivision to read: 
    Subd. 9.  [DEPOSIT OF FEES.] Fees received under this 
section and section 183.57 must be deposited in the state 
treasury and credited to the special revenue fund. 
    Sec. 297.  Minnesota Statutes 1984, section 192.51, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACTIVE DUTY PAY.] When called into active 
service by the governor, other than for encampment or maneuvers, 
including the time necessarily consumed in travel, each enlisted 
person of the military forces shall be paid by the state the pay 
and the allowances, when not furnished in kind, provided by law 
for enlisted persons of similar grade, rating and length of 
service in the armed forces of the United States, or $50 $65 a 
day, whichever is more. 
    Sec. 298.  Minnesota Statutes 1984, section 196.051, is 
amended by adding a subdivision to read: 
    Subd. 4.  [FEES.] When permitted by the court, the 
commissioner may charge a fee of up to five percent of the 
income of the estate of the person under guardianship to cover 
the expenses of providing the guardianship service. 
    Sec. 299.  [198.34] [DEPOSIT OF RECEIPTS.] 
    Federal money received by the commissioner for the care of 
veterans in a veterans home, after being credited to a federal 
receipt account, must be transferred to the special revenue fund 
in the state treasury.  Money paid to the commissioner by a 
veteran or by another person on behalf of a veteran for care in 
a veterans home must be deposited in the state treasury and 
credited to the special revenue fund. 
    Sec. 300.  Minnesota Statutes 1984, section 268.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE TREASURER COMMISSIONER OF FINANCE TO BE 
CUSTODIAN; SEPARATE ACCOUNTS; BONDS.] The state treasurer 
commissioner of finance shall be ex-officio the treasurer and 
custodian of the fund.  He shall administer the fund in 
accordance with the directions of the commissioner, and issue 
his warrants upon it in accordance with such regulations as the 
commissioner shall prescribe.  He shall maintain within the fund 
three separate accounts: 
    (1) A clearing account; 
    (2) An unemployment trust fund account; and 
    (3) A benefit account.  
    All moneys payable to the fund, upon receipt thereof by the 
commissioner, shall be forwarded to the treasurer commissioner 
of finance who shall immediately deposit them in the clearing 
account.  All moneys in the clearing account, after clearance 
thereof, shall, except as herein otherwise provided, be 
immediately deposited with the secretary of the treasury of the 
United States to the credit of the account of this state in the 
unemployment trust fund established and maintained pursuant to 
section 904 of the Social Security Act, as amended, any 
provisions of law in this state relating to the deposit, 
administration, release, or disbursement of moneys in the 
possession or custody of this state to the contrary 
notwithstanding.  Refunds payable pursuant to section 268.16, 
subdivision 6, and section 268.04, subdivision 12, clause (8) 
(f), may be paid from the clearing account or the benefit 
account.  The benefit account shall consist of all moneys 
requisitioned from this state's account in the unemployment 
trust fund in the United States Treasury for the payment of 
benefits.  Except as herein otherwise provided, moneys in the 
clearing and benefit accounts may be deposited by the treasurer 
commissioner of finance, under the direction of the 
commissioner, in any depository bank in which general funds of 
the state may be deposited, but no public deposit insurance 
charge or premium shall be paid out of the fund.  Moneys in the 
clearing and benefit accounts shall not be commingled with other 
state funds, but shall be maintained in separate accounts on the 
books of the depository bank.  Such money shall be secured by 
the depository bank to the same extent and in the same manner as 
required by the general depository law of this state; and 
collateral pledged for this purpose shall be kept separate and 
distinct from any collateral pledged to secure other funds of 
the state.  The treasurer shall give a separate bond conditioned 
upon the faithful performance of his duties with respect to the 
fund in an amount not less than $25,000.  The bond shall be 
approved by the attorney general.  Premiums for this bond shall 
be paid from the administration fund.  All sums recovered for 
losses sustained by the fund shall be deposited therein.  
    Sec. 301.  Minnesota Statutes 1984, section 268.38, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For the purpose of this 
section the following terms have the meanings given:  
    (a) "Temporary housing" means housing provided for a 
limited duration not exceeding six months and available for 
occupancy on a 24-hour continuous basis designed for independent 
living and provided to a homeless person or family at a rental 
rate of at least 25 percent of the family income for a period of 
up to six months.  If a temporary housing program is associated 
with a licensed facility or shelter, it must be located in a 
separate facility or a specified section of the main facility 
where residents can be responsible for their own meals and other 
daily needs.  
    (b) "Support services" means an assessment service that 
identifies the needs of individuals for independent living and 
arranges or provides for the appropriate educational, social, 
legal, advocacy, child care, employment, financial, health care, 
or information and referral services to meet these needs.  
    (c) "Commissioner" means the commissioner of economic 
security.  
    Sec. 302.  Minnesota Statutes 1984, section 268.38, 
subdivision 2, is amended to read: 
    Subd. 2.  [ESTABLISHMENT AND ADMINISTRATION.] A temporary 
housing demonstration program is established to be administered 
by the commissioner.  The commissioner may make grants to 
eligible recipients or enter into agreements with community 
action agencies or other public or private nonprofit agencies to 
make grants to eligible recipients to initiate, maintain, or 
expand programs to provide temporary housing and support 
services for persons in need of temporary housing.  The 
commissioner shall ensure that money appropriated to implement 
this section is distributed as soon as practicable.  The 
commissioner may make grants directly to eligible recipients.  
    The program shall terminate on June 30, 1985.  
    Sec. 303.  Minnesota Statutes 1984, section 268.38, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROGRAMS DESIGNATED.] At least two programs 
funded must be located in the seven-county metropolitan area and 
at least one program must be located outside of the metropolitan 
area.  At least one program must be designed primarily to serve 
families with children, at least one program must be designed 
primarily to serve single persons, and at least one program must 
be designed primarily to serve persons leaving a shelter for 
family abuse The commissioner may fund programs designed 
primarily to serve families with children, single persons, and 
persons leaving a shelter for family abuse. 
    Sec. 304.  Minnesota Statutes 1984, section 268.38, 
subdivision 7, is amended to read: 
    Subd. 7.  [FUNDING COORDINATION.] To the extent 
practicable, Grant recipients shall combine funds awarded under 
this section with other funds from public and private sources. 
Programs receiving funds under this section are also eligible 
for assistance under section 462A.05, subdivision 20.  
    Sec. 305.  Minnesota Statutes 1984, section 268.38, 
subdivision 8, is amended to read: 
    Subd. 8.  [PROGRAM INFORMATION.] In order to collect 
uniform data to better measure the nature and extent of the need 
for temporary housing, grant recipients shall collect and make 
available to the commissioner the following information:  
    (1) number of requests received for temporary housing, 
including the number of persons requiring assistance; 
    (2) number of persons for whom services are provided, 
including differentiation between adults and minor 
children listed by age; 
    (3) reasons for seeking assistance; 
    (4) length of stay; 
    (5) reasons for leaving the housing program;  
    (6) demand for support services; 
    (7) follow-up information on status of persons assisted, if 
possible including source of income and whether living 
independently, employed, or in treatment, unless the information 
is not available; and 
    (8) source of income on entering the program, prior 
residence, race, and sex of persons assisted. 
    Sec. 306.  Minnesota Statutes 1984, section 270.75, is 
amended by adding a subdivision to read: 
    Subd. 8.  If a tax payable to the commissioner of revenue 
or the department of revenue is not paid within the time 
specified by law, in addition to the interest prescribed in 
subdivision 5, the unpaid tax bears an interest surcharge at the 
rate of one-half percent a year from the date it should have 
been paid to the date it is paid. 
    Sec. 307.  [270.77] [SUBSTANTIAL UNDERSTATEMENT OF 
LIABILITY.] 
    (a) The commissioner of revenue shall impose a penalty for 
substantial understatement of liability of any tax payable to 
the commissioner.  Except as otherwise provided in this section, 
the penalty must be determined under section 6661 of the 
Internal Revenue Code of 1954, as amended through December 31, 
1984.  
    (b) The provisions of section 6661 (b)(3) of the Internal 
Revenue Code of 1954, as amended through December 31, 1984 do 
not apply.  
    (c) The penalty is not limited to taxes imposed by chapter 
290.  
    (d) A substantial understatement of liability for a tax not 
imposed by chapter 290 is an understatement that exceeds ten 
percent of the tax required to be shown on the return or $5,000, 
whichever is greater.  
    Sec. 308.  Minnesota Statutes 1984, section 270A.07, 
subdivision 1, is amended to read:  
    Subdivision 1.  [NOTIFICATION REQUIREMENT.] On or before 
December 15 any claimant agency, seeking collection of a debt 
through set-off against a refund due in the succeeding year, 
shall submit to the commissioner information indicating the 
amount of each debt and information identifying the debtor, as 
required by section 270A.04, subdivision 3.  Subject to the 
notification deadline specified above, the notification shall be 
effective only to initiate set-off for claims against refunds 
that would be made in the calendar year subsequent to the year 
in which notification is made to the commissioner.  
    The claimant agency shall submit to the commissioner the 
amount of $3 per certification.  The payment must accompany the 
certification.  The claimant agency shall increase the amount of 
each debt certified by $3 and this total amount is subject to 
recapture.  If the total debt is not recaptured by the 
commissioner, the $3 addition to the debt may be collected by 
the claimant agency from the debtor and must be considered an 
obligation of the debtor.  The $3 will not be refunded if the 
recapture is not accomplished. 
    Sec. 309.  Minnesota Statutes 1984, section 290.50, 
subdivision 6, is amended to read: 
    Subd. 6.  [WITHHOLDING OF REFUNDS FROM CHILD SUPPORT 
DEBTORS.] Upon a finding by a court of this state that a person 
obligated to pay child support is delinquent in making payments, 
the amount of child support unpaid and owing including attorneys 
fees and costs incurred in ascertaining or collecting child 
support shall be withheld from a refund due the person under 
this section.  The public agency responsible for child support 
enforcement or the parent or guardian of a child for whom the 
support, attorneys fees and costs are owed may petition the 
district or county court for an order providing for the 
withholding of the amount of child support, attorneys fees and 
costs unpaid and owing as determined by court order.  The person 
from whom the refund may be withheld shall be notified of the 
petition pursuant to the rules of civil procedure prior to the 
issuance of an order pursuant to this subdivision.  The order 
may be granted on a showing to the court that required support 
payments, attorneys fees and costs have not been made when they 
were due.  
    On order of the court and on payment of $3 to the 
commissioner, the money shall be withheld by the commissioner 
from the refund due to the person obligated to pay and the 
amount withheld shall be remitted to the public agency 
responsible for child support enforcement or to the parent or 
guardian petitioning on behalf of the child, provided that any 
delinquent tax obligations of the taxpayer owed to the revenue 
department shall be satisfied first.  Any amount received by the 
responsible public agency or the petitioning parent or guardian 
in excess of the amount of public assistance expended for the 
benefit of the child to be supported, or the amount of any 
support, attorneys fees and costs that had been the subject of 
the claim pursuant to this subdivision which has been paid by 
the taxpayer prior to the diversion of the refund, shall be 
remitted to the person entitled to the money.  If the refund is 
based on a joint or combined return, the portion of the refund 
that shall be remitted to the petitioner shall be the proportion 
of the total refund that equals the proportion of the total 
federal adjusted gross income of the spouses that is the federal 
adjusted gross income of the spouse who is delinquent in making 
the child support payments.  A petition filed pursuant to this 
subdivision shall be in effect with respect to any refunds due 
under this section until the support money, attorneys fees and 
costs have been paid in full or the court orders the 
commissioner to discontinue withholding the money from the 
refund due the person obligated to pay the support, attorneys 
fees and costs.  If a petition is filed pursuant to this 
subdivision and a claim is made pursuant to chapter 270A with 
respect to the same individual's refund and notices of both are 
received prior to the time when payment of the refund is made on 
either claim, the claim relating to the liability that accrued 
first in time shall be paid first; any amount of the refund 
remaining shall then be applied to the other claim.  The 
provisions of section 290.61 shall not prohibit the exchange of 
information among the department, the petitioner, and the court 
to the extent necessary to accomplish the intent of this 
subdivision.  
    Sec. 310.  Minnesota Statutes 1984, section 296.421, 
subdivision 4, is amended to read: 
    Subd. 4.  [DISTRIBUTION OF UNREFUNDED TAX FOR MOTOR BOAT 
PURPOSES.] The amount of unrefunded tax paid on gasoline used 
for motor boat purposes as computed in Minnesota Statutes 1961, 
Section 296.421, subdivision 5, shall be paid into the state 
treasury and 33 1/3 percent thereof shall be credited to the 
state park development account; 33 1/3 percent thereof shall be 
credited to the game and fish fund to be used to defray the cost 
and expense of the division of game and fish and the department 
of natural resources in the acquisition, improvement, 
development and maintenance of sites for public access to public 
waters of this state and for lake improvement; and the remaining 
33 1/3 percent thereof shall be credited to the general fund for 
purposes of boat and water safety credited to a water recreation 
account in the special revenue fund for acquisition, 
development, maintenance, and rehabilitation of sites for public 
access and boating facilities on public waters; lake and river 
improvement; state park development; and boat and water safety. 
    Sec. 311.  Minnesota Statutes 1984, section 296.421, is 
amended by adding a subdivision to read: 
    Subd. 5a.  Notwithstanding subdivision 5, the amount of 
unrefunded tax paid on gasoline used for motor boat purposes is 
1-1/2 percent from July 1, 1985, to June 30, 1987. 
    Sec. 312.  Minnesota Statutes 1984, section 297.13, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CIGARETTE TAX APPORTIONMENT ACCOUNT.] 
Notwithstanding any other provisions of law, five and one-half 
percent of the Revenues received from taxes, penalties and 
interest under sections 297.01 to 297.13 and from license fees 
and miscellaneous sources of revenue shall be deposited by the 
commissioner of revenue in the general fund and credited to a 
special account to be known as the "natural resources account," 
which is hereby created. Expenditures shall be made from said 
account only as may be authorized by law to carry out the 
provisions of this act and in conformance with the provisions of 
chapter 16.  Five and one-half percent shall be deposited in the 
general fund and credited to the "natural resources 
acceleration" account for the purposes provided in Laws 1969, 
Chapter 879, Section 4 state treasury.  The revenue produced by 
one mill of the tax on cigarettes weighing not more than three 
pounds per thousand and two mills of the tax on cigarettes 
weighing more than three pounds per thousand must be credited to 
a Minnesota resources fund for purposes of natural resources 
acceleration as provided in chapter 86.  The balance of the 
revenues derived from taxes, penalties, and interest under 
sections 297.01 to 297.13 and from license fees and 
miscellaneous sources of revenue shall be deposited by the 
commissioner in the general fund and credited to the general 
fund. 
    Sec. 313.  Minnesota Statutes 1984, section 298.2211, is 
amended by adding a subdivision to read: 
    Subd. 6.  [FEE SETTING.] Fees for admission to or use of 
facilities operated by the iron range resources and 
rehabilitation board that have been established according to 
prevailing market conditions and to recover operating costs need 
not be set by rule. 
    Sec. 314.  Minnesota Statutes 1984, section 326.52, is 
amended to read: 
    326.52 [DEPOSIT OF FEES.] 
    All fees received under sections 326.46 to 326.52 shall be 
deposited by the department of labor and industry to the credit 
of the general special revenue fund in the state treasury.  The 
salaries and per diem of the inspectors and examiners 
hereinbefore provided, their expenses, and all incidental 
expenses of the department in carrying out the provisions of 
sections 326.46 to 326.52 shall be paid from the appropriations 
made to the department of labor and industry. 
    Sec. 315.  Minnesota Statutes 1984, section 331A.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  [QUALIFICATION.] No newspaper in this state 
shall be entitled to any compensation or fee for publishing any 
public notice unless it is qualified as a medium of official and 
legal publication.  To be qualified as a medium of official and 
legal publication, a newspaper shall:  
    (a) Be printed in the English language in newspaper format 
and in column and sheet form equivalent in printed space to at 
least 1,000 square inches;  
    (b) If a daily, be distributed at least five days each 
week, or if not a daily, be distributed at least once each week, 
for 50 weeks each year.  In any week in which a legal holiday is 
included, not more than four issues of a daily paper are 
necessary;  
    (c) In at least half of its issues each year, have no more 
than 75 percent of its printed space comprised of advertising 
material and paid public notices.  In all of its issues each 
year, have 25 percent, if published more often than weekly, or 
50 percent, if weekly, of its news columns devoted to news of 
local interest to the community which it purports to serve.  Not 
more than 25 percent of its total nonadvertising column inches 
in any issue may wholly duplicate any other publication unless 
the duplicated material is from recognized general news services;
     (d) Be circulated in the local public corporation which it 
purports to serve, have at least 500 copies regularly delivered 
to paying subscribers and either have entry as second class 
matter in its local post office or have at least 500 copies 
regularly distributed without charge to local residents;  
    (e) Have its known office of issue established in either 
the county in which lies, in whole or in part, the local public 
corporation which the newspaper purports to serve, or in an 
adjoining county;  
    (f) File a copy of each issue immediately with the state 
historical society;  
    (g) Be made available at single or subscription prices to 
any person, corporation, partnership, or other unincorporated 
association requesting the newspaper and making the applicable 
payment, or be distributed without charge to local residents;  
    (h) Have complied with all the foregoing conditions of this 
subdivision for at least one year immediately preceding the date 
of the notice publication;  
    (i) The newspaper must before January 1 of each year 
publish and submit to the secretary of state, along with a 
filing fee of $25, a sworn United States Post Office 
second-class statement of ownership and circulation or a 
statement of ownership and circulation verified by a recognized 
independent circulation auditing agency. 
    Sec. 316.  Minnesota Statutes 1984, section 334.021, is 
amended to read: 
    334.021 [CORPORATION PROHIBITED FROM INTERPOSING DEFENSE OF 
USURY.] 
    No corporation shall hereafter interpose the defense of 
usury in any action.  The term "corporation," as used in this 
section, includes any cooperative corporation, cooperative 
association, or limited partnership organized under chapter 
322A, and further includes any association or joint stock 
company having any of the powers and privileges of corporations 
not possessed by an individual or a partnership. 
    Sec. 317.  Minnesota Statutes 1984, section 352.01, 
subdivision 2B, is amended to read: 
    Subd. 2B.  [EXCLUDED EMPLOYEES.] The following persons are 
excluded from the meaning of state employee: 
    (1) elective state officers; 
    (2) students employed by the University of Minnesota, the 
state universities, and community colleges unless approved for 
coverage by the board of regents, the state university board or 
the state board for community colleges, as the case may be; 
    (3) employees who are eligible to membership in the state 
teachers retirement association except employees of the 
department of education who have elected or may elect to be 
covered by the Minnesota state retirement system instead of the 
teachers retirement association; 
    (4) employees of the University of Minnesota who are 
excluded from coverage by action of the board of regents; 
    (5) officers and enlisted men in the national guard and the 
naval militia and such as are assigned to permanent peacetime 
duty who pursuant to federal law are or are required to be 
members of a federal retirement system; 
    (6) election officers; 
    (7) persons engaged in public work for the state but 
employed by contractors when the performance of the contract is 
authorized by the legislature or other competent authority; 
     (8) officers and employees of the senate and house of 
representatives or a legislative committee or commission who are 
temporarily employed; 
     (9) all courts and court employees, referees, receivers, 
jurors, and notaries public, except employees of the appellate 
courts and referees and adjusters employed by the department of 
labor and industry; 
     (10) patient and inmate help in state charitable, penal and 
correctional institutions including the Minnesota veterans home; 
     (11) persons employed for professional services where the 
service is incidental to regular professional duties and whose 
compensation is paid on a per diem basis; 
     (12) employees of the Sibley House Association; 
     (13) employees of the Grand Army of the Republic and 
employees of the ladies of the G.A.R.; 
     (14) operators and drivers employed pursuant to section 
16.07, subdivision 4; 
     (15) the members of any state board or commission who serve 
the state intermittently and are paid on a per diem basis; the 
secretary, secretary-treasurer, and treasurer of those boards if 
their compensation is $500 or less per year, or, if they are 
legally prohibited from serving more than two consecutive terms 
and their total service therefor is required by law to be less 
than ten years; and the board of managers of the state 
agricultural society and its treasurer unless he is also its 
full time secretary; 
     (16) state troopers; 
     (17) temporary employees of the Minnesota state fair 
employed on or after July 1 for a period not to extend beyond 
October 15 of the same year; and persons employed at any time or 
times by the state fair administration for special events held 
on the fairgrounds; 
    (18) emergency employees in the classified service except 
emergency employees who within the same pay period become 
provisional or probationary employees on other than a temporary 
basis, shall be deemed "state employees" retroactively to the 
beginning of the pay period; 
    (19) persons described in section 352B.01, subdivision 2, 
clauses (b) and (c) formerly defined as state police officers; 
    (20) all temporary employees in the classified service, all 
temporary employees in the unclassified service appointed for a 
definite period of not more than six months and employed less 
than six months in any one year period and all seasonal help in 
the unclassified classified service employed by the department 
of revenue; 
    (21) trainees paid under budget classification number 41, 
and other trainee employees, except those listed in subdivision 
2A, clause (10); 
    (22) persons whose compensation is paid on a fee basis; 
    (23) state employees who in any year have credit for 12 
months service as teachers in the public schools of the state 
and as teachers are members of the teachers retirement 
association or a retirement system in St. Paul, Minneapolis, or 
Duluth; 
     (24) employees of the adjutant general employed on an 
unlimited intermittent or temporary basis in the classified and 
unclassified service for the support of army and air national 
guard training facilities; 
     (25) chaplains and nuns who have taken a vow of poverty as 
members of a religious order; 
     (26) labor service employees employed as a laborer 1 on an 
hourly basis; 
     (27) examination monitors employed by departments, 
agencies, commissions, and boards for the purpose of conducting 
examinations required by law; 
     (28) members of appeal tribunals, exclusive of the chairman 
to which reference is made in section 268.10, subdivision 4; 
     (29) persons appointed to serve as members of fact finding 
commissions, adjustment panels, arbitrators, or labor referees 
under the provisions of chapter 179; 
     (30) temporary employees employed for limited periods of 
time under any state or federal program for the purpose of 
training or rehabilitation including persons employed for 
limited periods of time from areas of economic distress except 
skilled and supervisory personnel and persons having civil 
service status covered by the system; 
     (31) full time students employed by the Minnesota 
historical society who are employed intermittently during part 
of the year and full time during the summer months; 
     (32) temporary employees, appointed for not more than six 
months, of the metropolitan council and of any of its statutory 
boards, the members of which board are appointed by the 
metropolitan council; 
     (33) persons employed in positions designated by the 
department of employee relations as student workers; 
    (34) any person who is 65 years of age or older when 
appointed and who does not have allowable service credit for 
previous employment, unless the employee gives notice to the 
director within 60 days following his appointment that he 
desires coverage; 
    (35) tradesmen employed by the metropolitan waste control 
commission with trade union pension plan coverage pursuant to a 
collective bargaining agreement first employed after June 1, 
1977; and 
    (36) persons employed in subsidized on-the-job training, 
work experience or public service employment as enrollees under 
the federal comprehensive employment and training act from and 
after March 30, 1978, unless the person has as of the later of 
March 30, 1978 or the date of employment sufficient service 
credit in the retirement system to meet the minimum vesting 
requirements for a deferred annuity, or the employer agrees in 
writing on forms prescribed by the director to make the required 
employer contributions, including any employer additional 
contributions, on account of that person from revenue sources 
other than funds provided under the federal comprehensive 
employment and training act, or the person agrees in writing on 
forms prescribed by the director to make the required employer 
contribution in addition to the required employee contribution. 
    Sec. 318.  Minnesota Statutes 1984, section 361.03, 
subdivision 5, is amended to read:  
    Subd. 5.  [DISPOSITION OF RECEIPTS.] All money received by 
the commissioner shall be deposited with in the state 
treasurer treasury and shall be expended only as may be 
authorized by law for administration and enforcement of this 
chapter, inspection of watercraft, and acquisition and 
development of sites for public access to the waters of this 
state credited to the water recreation account.  
    Sec. 319.  Minnesota Statutes 1984, section 361.27, is 
amended to read: 
    361.27 [BOAT AND WATER SAFETY ACCOUNT; FINES AND FORFEITED 
BAIL MONEY.] 
    Subdivision 1.  [BOAT AND WATER SAFETY.] All license fees 
received under sections 361.01 to 361.29 shall be deposited in 
the state treasury and credited to the general fund.  A portion 
of these funds the money in the water recreation account shall 
be utilized by the department of natural resources to carry out 
the provisions of sections 361.01 to 361.29 and a portion shall 
be paid to counties and in an amount the commissioner shall 
determine and be used to defray the expenses of enforcement of 
the provisions of sections 361.01 to 361.29 and the expenses of 
a county sponsored or administered watercraft and swimming 
safety instructional program.  The commissioner may withhold up 
to $25,000 per biennium of the allocation for the purpose of 
payments to counties and other political subdivisions for 
specific boat and water safety projects beyond the capability of 
previously allocated funds.  Counties and other political 
subdivisions shall make application for payment of these funds 
on such forms and for such purposes as the commissioner shall 
prescribe.  
    Subd. 2.  [DISPOSITION FINES, BAIL MONEY.] All fines, 
installment payments, and forfeited bail money collected from 
persons convicted of violations of sections 361.01 to 361.28 
shall be paid to the county treasurer of the county where the 
violation occurred by the clerk of court or other person 
collecting the moneys within 15 days after the last day of the 
month in which they were collected.  One-half of the receipts 
shall be credited to the general revenue fund of the county.  
The other one-half of the receipts shall be transmitted by the 
county treasurer to state treasurer the commissioner of natural 
resources to be deposited in the general fund water recreation 
account in the state treasury for the purpose of boat and water 
safety. 
    Sec. 320.  Minnesota Statutes 1984, section 363.01, 
subdivision 24, is amended to read: 
    Subd. 24.  [LOCAL COMMISSION.] "Local commission" means an 
agency of a city, county, or group of counties created pursuant 
to law, resolution of a county board, city charter, or municipal 
ordinance for the purpose of dealing with discrimination on the 
basis of race, color, creed, religion, national origin, sex, 
age, disability, marital status, status with regard to public 
assistance, or familial status.  
    Sec. 321.  Minnesota Statutes 1984, section 363.01, is 
amended by adding a subdivision to read: 
    Subd. 35.  [HUMAN RIGHTS INVESTIGATIVE DATA.] "Human rights 
investigative data" means written documents issued or gathered 
by the department for the purpose of investigating and 
prosecuting alleged or suspected discrimination. 
    Sec. 322.  Minnesota Statutes 1984, section 363.01, is 
amended by adding a subdivision to read: 
    Subd. 36.  [CONFIDENTIAL, PRIVATE, AND PUBLIC DATA ON 
INDIVIDUALS AND PROTECTED NONPUBLIC DATA NOT ON 
INDIVIDUALS.] "Confidential," "private," "public data on 
individuals," "protected nonpublic data not on individuals," and 
any other terms concerning the availability of human rights 
investigative data have the meanings given them by section 13.02 
of the Minnesota government data practices act. 
    Sec. 323.  Minnesota Statutes 1984, section 363.01, is 
amended by adding a subdivision to read: 
    Subd. 37.  [CLOSED CASE FILE.] "Closed case file" means a 
file containing human rights investigative data in which an 
order or other decision resolving the alleged or suspected 
discrimination has been made or issued by the commissioner, a 
hearing officer, or a court, and the time for any 
reconsideration of or appeal from the order or decision has 
expired. 
    Sec. 324.  Minnesota Statutes 1984, section 363.01, is 
amended by adding a subdivision to read: 
    Subd. 38.  [OPEN CASE FILE.] "Open case file" means a file 
containing human rights investigative data in which no order or 
other decision resolving the alleged or suspected discrimination 
has been made or issued by the commissioner, a hearing officer, 
or a court, or a file in which an order or other decision has 
been issued but the time for any reconsideration or appeal of 
the order or decision has either not yet expired or the 
reconsideration or appeal is then pending. 
    Sec. 325.  Minnesota Statutes 1984, section 363.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [ENFORCEMENT AND EFFECT OF SUBPOENA.] (a) 
Disobedience of a subpoena issued by the commissioner pursuant 
to subdivision 1 shall be punishable in like manner as a 
contempt of the district court in proceedings instituted upon 
application of the commissioner made to the district court of 
the county where the alleged unfair discriminatory practice in 
connection with a charge made by a charging party or a complaint 
filed by the commissioner has occurred or where the respondent 
resides or has his principal place of business. 
    (b) It is not a violation of rights conferred by chapter 13 
or any other statute related to the confidentiality of 
government data for an agency to provide data or information 
under a subpoena issued by the commissioner under this section. 
    Sec. 326.  Minnesota Statutes 1984, section 363.06, 
subdivision 8, is amended to read: 
    Subd. 8.  [ACCESS TO DOCUMENTS.] The commissioner shall 
provide the respondent with a copy of the charge.  The charging 
party or his representative may review the answer of the 
respondent to the charge submitted pursuant to subdivision 1.  
The department shall make these documents available to the 
charging party.  
    Sec. 327.  [363.061] [ACCESS TO CASE FILES.] 
    Subdivision 1.  [GENERAL PROVISIONS.] Notwithstanding 
section 13.39, and except as provided in section 363.06, 
subdivisions 6 and 8, the availability of human rights 
investigative data to persons other than department employees is 
governed by this section. 
    Subd. 2.  [ACCESS TO OPEN FILES.] (a) Human rights 
investigative data on an individual, with the exception of the 
name and address of the charging party and respondent, factual 
basis of the allegations, and the statute under which the action 
is brought, contained in an open case file is classified as 
confidential.  The name and address of the charging party and 
respondent, factual basis of the allegations, and the statute 
under which the action is brought are classified as public data 
unless the commissioner determines that release of the data 
would be detrimental to the investigative and enforcement 
process. 
    (b) Human rights investigative data not on an individual 
contained in an open case file is classified as protected 
nonpublic data. 
    (c) Notwithstanding this subdivision, the commissioner may 
make human rights investigative data contained in an open case 
file accessible to a person, government agency, or the public if 
access will aid the investigative and enforcement process. 
    Subd. 3.  [ACCESS TO CLOSED FILES.] (a) Human rights 
investigative data on an individual contained in a closed case 
file is classified as private, with the exception of the 
following documents:  the name and address of the charging party 
and respondent, factual basis of the allegations, and the 
statute under which the action is brought, the part of the 
summary of the investigation that does not contain identifying 
data on an individual other than the complainant or respondent, 
and the commissioner's memorandum determining whether probable 
cause has been shown. 
    (b) Human rights investigative data not on an individual 
contained in a closed case file is classified as nonpublic. 
    (c) Notwithstanding this subdivision, the commissioner may 
make human rights investigative data contained in a closed case 
file inaccessible to the charging party or the respondent in 
order to protect medical or other security interests of the 
parties or third persons. 
    Sec. 328.  [363.114] [JURISDICTION OF COUNTY COMMISSIONS.] 
    If a county or group of counties creates a local 
commission, the commission does not have jurisdiction over any 
part of the county that is within the jurisdiction of a local 
commission created by city charter or municipal ordinance. 
    Sec. 329.  Minnesota Statutes 1984, section 363.116, is 
amended to read: 
    363.116 [TRANSFER TO COMMISSIONER.] 
    A local commission may refer a matter under its 
jurisdiction to the commissioner.  
    The charging party has the option of filing a charge either 
with a local commission or the department.  Notwithstanding the 
provisions of any ordinance or resolution to the contrary, a 
charge may be filed with a local commission within 300 days 
after the occurrence of the practice.  The exercise of such 
choice in filing a charge with one agency shall preclude the 
option of filing the same charge with the other agency.  At the 
time a charge comes to the attention of a local agency, the 
agency or its representative shall inform the charging party of 
this option, and of his rights under Laws 1967, Chapter 897.  
    The term "local commission" as used in this section has the 
same meaning given the term in section 363.115. 
    Sec. 330.  Minnesota Statutes 1984, section 403.11, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ANNUAL RECURRING COSTS EMERGENCY TELEPHONE 
SERVICE FEE.] All annual recurring costs of a public utility 
incurred in the maintenance of trunking and central office 
outswitching equipment for minimum 911 service shall be paid 
from the general fund of the state treasury by appropriations 
for that purpose.  (a) Each customer of a local exchange company 
is assessed a fee to cover the costs of ongoing maintenance and 
related improvements for trunking and central office switching 
equipment for minimum 911 emergency telephone service, plus 
administrative and staffing costs of the department of 
administration related to managing the 911 emergency telephone 
service program.  
    (b) The fee may not be less than eight cents nor more than 
30 cents a month for each customer access line, including trunk 
equivalents as designated by the public utilities commission for 
access charge purposes.  The fee must be the same for all 
customers.  
    (c) The fee must be collected by each utility providing 
local exchange telephone service.  Fees are payable to and must 
be submitted to the commissioner of administration monthly 
before the 25th of each month following the month of collection, 
except that fees may be submitted quarterly if less than $250 a 
month is due, or annually if less than $25 a month is due.  
Receipts must be deposited in the state treasury and credited to 
the special revenue fund.  
    (d) The commissioner of administration, with the approval 
of the commissioner of finance, shall establish the amount of 
the fee within the limits specified and inform the utilities of 
the amount to be collected.  Utilities must be given a minimum 
of 45 days notice of fee changes. 
    Sec. 331.  Minnesota Statutes 1984, section 422A.101, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [CONTRIBUTIONS BY METROPOLITAN AIRPORT 
COMMISSION AND METROPOLITAN WASTE CONTROL COMMISSION.] The 
metropolitan airport commission and the waste control commission 
shall pay to the Minneapolis employees retirement fund annually 
in installments as specified in subdivision 3 the share of the 
additional support rate required for full amortization of the 
unfunded liabilities by the year 2017 that is attributable to 
airport commission or waste control commission employees who are 
members of the fund.  The amount of the payment is determined by 
the most recent actuarial valuation, as calculated by the 
actuary for the legislative commission on pensions and 
retirement. 
    Sec. 332.  Minnesota Statutes 1984, section 422A.101, 
subdivision 3, is amended to read: 
    Subd. 3.  [STATE CONTRIBUTIONS.] The state shall pay to the 
Minneapolis employees retirement fund annually an amount equal 
to the financial requirements of the Minneapolis employees 
retirement fund reported by the actuary in the actuarial 
valuation of the fund prepared pursuant to section 356.215 for 
the most recent year but based on a target date for full 
amortization of the unfunded liabilities by the year 2017 less 
the amount of employee contributions required pursuant to 
section 422A.10, and the amount of employer contributions 
required pursuant to subdivisions 1a and, 2, and 2a.  Payments 
shall be made in four equal installments on March 15, July 15, 
September 15, and November 15 annually. 
    Sec. 333.  Minnesota Statutes 1984, section 462A.03, 
subdivision 14, is amended to read: 
    Subd. 14.  "Federal housing assistance supplements" means 
and refers to all funds or certificates of tax credit or 
exemption, including mortgage credit certificates, made 
available to the state of Minnesota by the federal government or 
any agency or instrumentality thereof for the purpose of 
assisting in providing adequate and economic housing in the 
state of Minnesota. 
    Sec. 334.  Minnesota Statutes 1984, section 462A.05, 
subdivision 11, is amended to read: 
    Subd. 11.  It may receive federal housing assistance 
supplements from the federal government, or from agencies or 
instrumentalities thereof; may administer and distribute said 
funds supplements in accordance with the applicable provisions 
of federal law or regulations governing the administration and 
distribution of said supplements; and may make and publish such 
rules and regulations as are necessary to enable it to receive, 
administer, and distribute said supplements in accordance with 
said federal laws and regulations. 
    Sec. 335.  Minnesota Statutes 1984, section 462A.05, 
subdivision 12, is amended to read: 
    Subd. 12.  It may, from time to time, establish such funds 
as may be needed in order to receive, administer, and distribute 
federal housing assistance supplements.  All federal housing 
assistance supplements supplement funds received by the agency 
are hereby appropriated to the agency. 
    Sec. 336.  Minnesota Statutes 1984, section 462A.05, is 
amended by adding a subdivision to read: 
    Subd. 12a.  It may participate in qualified mortgage 
certificate programs as provided by section 25 of the Internal 
Revenue Code of 1954, as amended through December 31, 1984. 
    Sec. 337.  Minnesota Statutes 1984, section 462A.05, 
subdivision 15a, is amended to read: 
    Subd. 15a.  It may make grants or loans to persons and 
families of low and moderate income to improve the accessibility 
of existing residential housing for handicapped occupants, or to 
assist in paying a loan made pursuant to subdivision 14 to 
improve the accessibility of existing residential housing for 
handicapped occupants.  Grants may be in an amount up to 
$10,000, based upon the cost of the improvements, the financial 
ability of the person or family receiving the grant, and other 
appropriate factors including extraordinary medical expenses. 
Grants may be made in connection with other agency loan or grant 
programs; provided that in no case may agency rehabilitation 
loans and any grants pursuant to this section total an amount 
exceeding $15,000 The amount of an accessibility grant or loan 
must not exceed the lesser of the actual cost of the work 
performed or the part of the cost of rehabilitation the agency 
determines cannot otherwise be paid by the person or family 
without spending an unreasonable portion of the income of the 
person or family on it, based upon the cost of the improvements 
and other appropriate factors including extraordinary medical 
expenses.  Grants or loans made pursuant to this section may 
include the payment of money for technical assistance for the 
design and construction of accessibility improvements.  In 
making grants or loans under this subdivision, the agency shall 
determine the circumstances under which and the terms and 
conditions under which all or any portion thereof will be repaid 
and shall determine the appropriate security should repayment be 
required.  The agency may gather data on available accessible 
housing financed under this program and make the information 
available to interested individuals and groups. 
    Sec. 338.  Minnesota Statutes 1984, section 462A.05, is 
amended by adding a subdivision to read: 
    Subd. 24.  It may engage in housing programs for low and 
moderate income elderly persons, as defined by the agency, to 
provide grants or loans, with or without interest, for 
    (1) accessibility improvements to residences occupied by 
elderly persons; 
    (2) housing sponsors, as defined by the agency, of home 
sharing programs to match existing elderly homeowners with 
prospective tenants who will contribute either rent or services 
to the homeowner; 
    (3) the construction of or conversion of existing buildings 
into structures for occupancy by the elderly that contain from 
three to twelve private sleeping rooms with shared cooking 
facilities and common space; and 
    (4) housing sponsors, as defined by the agency, to 
demonstrate the potential for home equity conversion in 
Minnesota for the elderly, in both rural and urban areas, and to 
determine the need in those equity conversions for consumer 
safeguards.  
    In making the grants or loans, the agency shall determine 
the terms and conditions of repayment and the appropriate 
security, if any, should repayment be required. 
    Sec. 339.  Minnesota Statutes 1984, section 462A.07, 
subdivision 14, is amended to read: 
    Subd. 14.  It may engage in housing programs for low and 
moderate income American Indians, as that term is defined in 
section 254A.02, subdivision 11, developed and administered 
separately or in combination by the Minnesota Chippewa tribe, 
the Red Lake band of Chippewa Indians, and the Sioux communities 
as determined by such tribe, band, or communities.  In 
developing such housing programs the tribe, band, or communities 
shall take into account the housing needs of all American 
Indians residing both on and off reservations within the state.  
A plan for each such program, which specifically describes the 
program (a) content, (b) utilization of funds, (c) 
administration, (d) operation, (e) implementation and other 
matter, as determined by the agency, must be submitted to the 
agency for its review and approval prior to the making of 
eligible loans pursuant to section 462A.21.  All such programs 
must conform to rules promulgated by the agency concerning 
program administration, including but not limited to rules 
concerning costs of administration; the quality of housing; 
interest rates, fees and charges in connection with making 
eligible loans; and other matters determined by the agency to be 
necessary in order to effectuate the purposes of this 
subdivision and section 462A.21, subdivisions 4b and 4c.  All 
such programs must provide for a reasonable balance in the 
distribution of funds appropriated for the purpose of this 
section between American Indians residing on and off 
reservations within the state.  Nothing in this section shall 
preclude such tribe, band, or communities from requesting and 
receiving cooperation, advice, and assistance from the agency as 
regards program development, operation, delivery, financing, or 
administration.  As a condition to the making of such eligible 
loans, the Minnesota Chippewa tribe, the Red Lake band of 
Chippewa Indians and the Sioux communities shall: 
             (a) enter into a loan agreement and other contractual 
arrangements with the agency for the purpose of transferring the 
allocated portion of loan funds as set forth in section 462A.26 
and to insure compliance with the provisions of this section and 
this chapter, and 
             (b) shall agree that all of their official books and 
records related to such housing programs shall be subjected to 
audit by the legislative auditor in the manner prescribed for 
agencies of state government. 
             The agency shall submit a biennial report concerning the 
various housing programs for American Indians, and related 
receipts and expenditures as provided in section 462A.22, 
subdivision 9, and such tribe, band, or communities to the 
extent that they administer such programs, shall be responsible 
for any costs and expenses related to such administration 
provided, however, they shall be eligible for payment for costs, 
expenses and services pursuant to section 462A.07, subdivision 
12, and section 462A.21.  The agency may provide or cause to be 
provided essential general technical services as set forth in 
section 462A.07, subdivision 2, and general consultative project 
assistance services, including, but not limited to, management 
training, and home ownership counseling as set forth in section 
462A.07, subdivision 3.  Members of boards, committees, or other 
governing bodies of the tribe, band, and communities 
administering the programs authorized by this subdivision must 
be compensated for those services as provided in section 
15.0575. Rules promulgated under this subdivision may be 
promulgated as emergency rules under chapter 14. 
    Sec. 340.  Minnesota Statutes 1984, section 462A.07, 
subdivision 15, is amended to read: 
    Subd. 15.  It may engage in housing programs for low and 
moderate income American Indians as that term is defined in 
section 254A.02, subdivision 11, residing in the metropolitan 
area defined in section 473.121, subdivision 2, and cities with 
a population greater than 50,000 persons.  The programs shall 
demonstrate innovative methods of providing housing for urban 
Indians, may involve the construction, purchase, and 
rehabilitation of residential housing, and may be administered 
through any other provision of this chapter.  To the extent 
possible, the programs shall combine appropriated money with 
other money from both public and private sources, except that 
interest earned on the portion of an appropriation to be 
expended for Indian housing programs in the city of Duluth does 
not have to be combined with money from other sources.  
Effective June 30, 1985, all money allocated by the agency under 
this subdivision to programs for urban Indian housing that are 
not subject to active contracts shall be reallocated by the 
agency to programs to fulfill the purposes of this subdivision.  
Members of boards, committees, or other governing bodies of 
organizations administering the urban Indian programs authorized 
by this subdivision must be compensated for those services as 
provided in section 15.0575.  The agency shall consult with the 
advisory council on urban Indians created pursuant to section 
3.922, subdivision 8, in the development of programs pursuant to 
this subdivision. 
    Sec. 341.  Minnesota Statutes 1984, section 462A.08, 
subdivision 3, is amended to read: 
    Subd. 3.  All notes or bonds issued hereunder shall be 
negotiable investment securities within the meaning and for all 
purposes of the uniform commercial code, subject only to any 
provisions of the bonds and notes for registration.  All notes 
and bonds so issued shall may be either general obligations of 
the agency, secured by its full faith and credit, and payable 
out of any moneys, assets, or revenues of the agency, subject to 
the provisions of resolutions or indentures pledging and 
appropriating particular moneys, assets, or revenues to 
particular notes or bonds, or limited obligations of the agency 
not secured by its full faith and credit, and payable solely 
from those moneys, assets, or revenues of the agency as may be 
authorized by resolution or indenture.  
    Sec. 342.  Minnesota Statutes 1984, section 462A.20, 
subdivision 3, is amended to read: 
    Subd. 3.  Whenever any moneys are appropriated by the state 
to the agency solely for a specified purpose or purposes, the 
agency shall establish a separate bookkeeping account or 
accounts in the housing development fund to record the receipt 
and disbursement of such moneys and of the income, gain, and 
loss from the investment and reinvestment thereof.  The agency 
may transfer unencumbered balances from one appropriated account 
to another, provided that (1) no moneys appropriated for the 
purpose of agency loan programs may be transferred to an account 
to be used for making grants, and (2) moneys appropriated for 
the purpose of section 462A.21, subdivisions 4a, 4f, and 4g, may 
only be transferred for the purpose of section 462A.21, 
subdivision 4i except that money appropriated for the purpose of 
section 462A.05, subdivision 14a, may be transferred for the 
purpose of section 462A.05, subdivision 15a.  
    Sec. 343.  Minnesota Statutes 1984, section 462A.21, 
subdivision 6, is amended to read: 
    Subd. 6.  Notwithstanding the provisions of subdivision 5, 
the agency shall not expend moneys in the fund for the purpose 
of making rehabilitation or accessibility grants except by 
specific appropriation by the legislature or by transfer of 
unencumbered account balances as provided by section 462A.20, 
subdivision 3. 
    Sec. 344.  Minnesota Statutes 1984, section 462A.21, is 
amended by adding a subdivision to read: 
    Subd. 13.  It may spend money for the purpose of section 
462A.05, subdivision 24, and may pay the costs and expenses 
necessary and incidental to the development and operation of the 
programs authorized in that subdivision. 
    Sec. 345.  Minnesota Statutes 1984, section 462C.09, is 
amended by adding a subdivision to read: 
    Subd. 5.  [STATE CERTIFICATION.] The executive director of 
the Minnesota housing finance agency is designated as the state 
official to provide the pre-issuance certification required by 
section 103A(j) (4) (A) of the Internal Revenue Code of 1954, as 
amended through December 31, 1984. 
    Sec. 346.  Minnesota Statutes 1984, section 466.03, is 
amended by adding a subdivision to read: 
    Subd. 6c.  [WATER ACCESS SITES.] Any claim based upon the 
construction, operation, or maintenance by a municipality of a 
water access site created by the iron range resources and 
rehabilitation board. 
    Sec. 347.  Minnesota Statutes 1984, section 471.345, is 
amended by adding a subdivision to read: 
    Subd. 10.  [HOSPITAL SHARED SERVICE PURCHASING.] Supplies, 
materials, or equipment to be used in the operation of a 
hospital licensed under sections 144.50 to 144.56 that are 
purchased or leased under a shared service purchasing 
arrangement whereby more than one hospital purchases supplies, 
materials, or equipment with one or more other hospitals either 
through one of the hospitals or through another entity, may be 
purchased without regard to the competitive bidding requirements 
of this section, if the following conditions are met: 
    (1) the hospital's governing authority authorizes the 
arrangement; 
    (2) the shared services purchasing program purchases items 
available from more than one source on the basis of competitive 
bids or competitive quotations of prices; and 
    (3) the arrangement authorizes the hospital's governing 
authority or its representatives to review the purchasing 
procedures to determine compliance with these requirements. 
    Sec. 348.  Minnesota Statutes 1984, section 472.03, 
subdivision 9, is amended to read: 
    Subd. 9.  "Minnesota fund account" means the fund account 
appropriated to the state agency by section 472.13, to assist a 
local agency in financing or planning a redevelopment project.  
    Sec. 349.  Minnesota Statutes 1984, section 472.11, 
subdivision 3, is amended to read: 
    Subd. 3.  Moneys loaned by the state agency to the local 
agency shall be withdrawn from the Minnesota fund account 
established by section 472.13, and paid over to the local agency 
in such manner as shall be provided and prescribed by the rules 
and regulations of the state agency. 
    Sec. 350.  Minnesota Statutes 1984, section 472.11, 
subdivision 9, is amended to read: 
    Subd. 9.  The state agency is empowered to provide 
technical assistance loans from the Minnesota fund account for 
the development and planning of redevelopment projects.  The 
technical assistance loans may be provided through the payment 
of funds money to:  (a) other state agencies or departments; (b) 
the employment of private individuals; (c) the employment of 
public, private, or nonprofit firms; (d) state, area, district, 
or local organizations; or (e) other nonprofit 
institutions.  Funds Money awarded pursuant to clauses (b) and 
(c) shall be in the form of loans and shall be repaid unless the 
project is deemed unfeasible by the state agency.  The state 
agency shall require the repayment of some or all technical 
assistance funds money and shall prescribe the terms and 
conditions of the repayment.  The amount of technical assistance 
loans is limited to an aggregate of ten percent of the funds 
money available in the Minnesota fund account.  The technical 
assistance loans shall not be included when computing the 20 
percent limitation provided in section 472.125.  The state 
agency may loan technical assistance funds money in cooperation 
with the technical assistance grant programs of any agency of 
the federal government.  The state agency may prescribe rules to 
carry out the purposes of this subdivision. 
    Sec. 351.  Minnesota Statutes 1984, section 472.125, is 
amended to read: 
    472.125 [PARTICIPATION IN FEDERAL LOANS OR GUARANTEES.] 
    The state agency may participate with the appropriate 
federal agency under the Rural Development Act of 1972, the 
Public Works and Economic Development Act of 1965, or the Small 
Business Act in the financing of redevelopment projects.  Such 
participation may take the form of loans or guarantees of any 
balance remaining after federal participation.  The loans or 
guarantees shall be made subject to the conditions and 
limitations set forth in sections 472.11 and 472.12.  In no 
event shall a loan or guarantee exceed 20 percent of the total 
cost of the project.  In addition, the total guarantees 
outstanding at any time shall not exceed five times the balance 
in the Minnesota fund account.  
    Sec. 352.  Minnesota Statutes 1984, section 472.13, is 
amended to read: 
    472.13 [APPROPRIATION TO ECONOMIC DEVELOPMENT 
FUND MINNESOTA ACCOUNT.] 
    Subdivision 1.  [APPROPRIATION ACCOUNT CREATED.] There is 
appropriated out of the general fund in the state treasury not 
otherwise appropriated the sum of $1,500,000 to the authority to 
be used for the purposes set forth in sections 472.01 to 472.16 
excluding the necessary cost of administration thereof.  The sum 
appropriated shall be credited to a special account In the 
economic development fund created in section 116J.82, 
subdivision 1c 116M.06, subdivision 4, there is created a 
Minnesota account, to be drawn upon and used by the authority in 
the manner and for the purposes provided for in sections 472.01 
to 472.16. 
    Subd. 2.  [LOANS.] The authority shall have the power, from 
time to time, to draw upon the special Minnesota account in the 
economic development fund the amounts the authority determines 
for loans to local or area redevelopment agencies for the 
financing and planning of redevelopment projects.  When the 
amounts so allocated by the authority as loans to local or area 
redevelopment agencies are repaid to the authority pursuant to 
the terms of its agreements with the local agency, the authority 
shall pay the amounts into the special Minnesota account in the 
economic development fund, it being the purpose and intent of 
this section that the account shall operate as a revolving 
account whereby all appropriations and payments made to it may 
be applied and reapplied to the purposes of sections 472.01 to 
472.16 and shall not revert to the general fund of the state. 
    Subd. 3.  [EXCESS FUNDS MONEY.] If the authority determines 
that funds money held for the credit of the special Minnesota 
account in the economic development fund are is in excess of the 
amounts needed by the authority to carry out the purposes of 
sections 472.01 to 472.16, the authority may by resolution 
release the excess from the account and transfer it to the 
general fund of the state treasury. 
    Subd. 4.  [MATCHING FUNDS MONEY.] The authority may utilize 
any moneys in the special Minnesota account for the purpose of 
matching federal funds money available under the Public Works 
and Economic Development Act of 1965. 
    Sec. 353.  Minnesota Statutes 1984, section 473.123, 
subdivision 5, is amended to read: 
    Subd. 5.  [METROPOLITAN COUNCIL; DUTIES AND COMPENSATION.] 
The metropolitan council shall elect such officers as it deems 
necessary for the conduct of its affairs other than the 
chairman.  A secretary and treasurer need not be members of the 
metropolitan council.  Meeting times and places shall be fixed 
by the metropolitan council and special meetings may be called 
by a majority of the members of the metropolitan council or by 
the chairman thereof.  Each metropolitan council member other 
than the chairman shall be paid a per diem compensation of $50 
for each meeting and for such other services as authorized by 
the metropolitan council, and shall be reimbursed for his 
reasonable expenses.  The annual budget of the council shall 
provide as a separate account anticipated expenditures for per 
diem, travel and associated expenses for the chairman and 
members, and compensation or reimbursement shall be made to the 
chairman and members only when budgeted. 
    In the performance of its duties the metropolitan council 
may promulgate rules governing its operation, establish 
committees, divisions, departments and bureaus and staff the 
same as necessary to carry out its duties and when specifically 
authorized by law make appointments to other governmental 
agencies and districts.  All officers and employees of the 
metropolitan council shall serve at the pleasure of the 
appointing authority in the unclassified service of the state 
civil service.  Rules promulgated by the metropolitan council 
shall be in accordance with the administrative procedure 
provisions contained in chapter 14. 
    Sec. 354.  Minnesota Statutes 1984, section 473.141, 
subdivision 7, is amended to read: 
    Subd. 7.  [COMPENSATION.] Each commission member shall be 
paid a per diem compensation of $50 for each meeting and for 
such other services as authorized by the commission, and shall 
be reimbursed for all actual and necessary expenses incurred in 
the performance of his duties in the same manner and amount as 
state employees.  The chairman shall receive a salary in an 
amount fixed by section 15A.081 and shall be reimbursed for 
reasonable expenses to the same extent as a member; provided 
that the chairman of the metropolitan sports facilities 
commission shall receive, unless otherwise provided by other 
law, a salary in an amount fixed by the members of the 
commission and shall be reimbursed for reasonable expenses to 
the same extent as a member.  The annual budget of each 
commission shall provide as a separate account anticipated 
expenditures for per diem, travel and associated expenses for 
the chairman and members, and compensation or reimbursement 
shall be made to the chairman and members only when budgeted. 
    Sec. 355.  [473.351] [METROPOLITAN AREA REGIONAL PARKS 
FUNDING.] 
    Subdivision 1.  [DEFINITIONS.] The definitions in this 
subdivision apply to this section.  
    (a) "Implementing agency" means the counties of Anoka, 
Washington, Ramsey, Scott, Carver, Dakota, the city of St. Paul, 
the city of Bloomington, the Minneapolis park and recreation 
board, and the Hennepin county park reserve district. 
    (b) "Operation and maintenance expenditures" means the cost 
of providing for the operation and maintenance of waters, lands, 
and facilities that are a part of the metropolitan area regional 
park and open space system, including but not limited to, the 
provision of fire, police, maintenance, forestry, rehabilitation 
expenses pertaining to routine care, and the allocation of the 
administrative overhead costs of the regional park and open 
space systems.  
    (c) "Operation and maintenance money" means money 
appropriated by the legislature to the commissioner of energy 
and economic development for distribution by the metropolitan 
council. 
    (d) "Regional recreation open space systems" means those 
parks that have been designated by the metropolitan council 
under section 473.145. 
    Subd. 2.  [METROPOLITAN COUNCIL OBLIGATION.] Annually 
before August 1 the metropolitan council shall distribute grant 
money received from the commissioner of energy and economic 
development to fund the operation and maintenance expenditures 
of the implementing agencies for the operation and maintenance 
of regional park and open space systems.  The metropolitan 
council shall annually report to the legislature the amount 
distributed to each implementing agency and its estimate of the 
percentage of operation and maintenance expenditures paid for 
with operation and maintenance money. 
    Subd. 3.  [ALLOCATION FORMULA.] By July 1 of every year 
each implementing agency must submit to the metropolitan parks 
and open space commission a statement of the next annual 
anticipated operation and maintenance expenditures of the 
regional recreation open space parks systems within their 
respective jurisdictions and the previous year's actual 
expenditures.  After reviewing the actual expenditures submitted 
and by July 15 of each year, the parks and open space commission 
shall forward to the metropolitan council the funding requests 
from the implementing agencies based on the actual expenditures 
made.  The metropolitan council shall distribute the operation 
and maintenance money as follows: 
    (1) 40 percent based on the use that each implementing 
agency's regional recreation open space system has in proportion 
to the total use of the metropolitan regional recreation open 
space system; 
    (2) 40 percent based on the operation and maintenance 
expenditures made in the previous year by each implementing 
agency in proportion to the total operation and maintenance 
expenditures of all of the implementing agencies; and 
    (3) 20 percent based on the acreage that each implementing 
agency's regional recreation open space system has in proportion 
to the total acreage of the metropolitan regional recreation 
open space system.  The 80 percent natural resource management 
land acreage of the park reserves must be divided by four in 
calculating the distribution under this clause. 
    Each implementing agency must receive no less than 40 
percent of its actual operation and maintenance expenses to be 
incurred in the current calendar year budget as submitted to the 
parks and open space commission.  If the available operation and 
maintenance money is less than the total amount determined by 
the formula including the preceding, the implementing agencies 
will share the available money in proportion to the amounts they 
would otherwise be entitled to under the formula. 
    Subd. 4.  [IMPLEMENTING AGENCY CONTROL.] This section does 
not affect, change, alter, transfer, or modify the governance, 
administration, jurisdiction, or control of the implementing 
agencies over the parks, water, lands, and facilities they 
presently or in the future may administer, govern, or control, 
nor the employment relationship between the implementing 
agencies and their present and future employees. 
    Subd. 5.  [SUNSET.] This section is repealed July 1, 1987.  
    Sec. 356.  Minnesota Statutes 1984, section 473.605, 
subdivision 2, is amended to read: 
    Subd. 2.  Each commission member shall be paid a per diem 
compensation of $50 for each meeting of the commission, one of 
its committees, and attendance and participation at a meeting or 
hearing as a representative of the commission pursuant to state 
law or rule.  Members shall be reimbursed for all actual and 
necessary expenses incurred in the performance of their duties 
in the same manner and amount as state employees.  The chairman 
shall receive compensation as determined by the commission and 
shall be reimbursed for reasonable expenses to the same extent 
as a member.  The mayors and members of the city councils of 
Minneapolis and St. Paul shall not be eligible for per diem 
compensation.  The annual budget of the commission shall provide 
as a separate account anticipated expenditures for per diem, 
travel and associated expenses for the chairman and members, and 
compensation or reimbursement shall be made to the chairman and 
members only when budgeted. 
    Sec. 357.  Minnesota Statutes 1984, section 473.606, 
subdivision 1, is amended to read: 
    Subdivision 1.  The corporation shall elect from its 
membership a vice-chairman and shall elect a secretary and a 
treasurer, who may or may not be one of the commissioners.  The 
vice-chairman and, the secretary, and the treasurer shall hold 
office at the pleasure of the corporation, and the secretary and 
the treasurer, if not a commissioner, shall receive compensation 
as determined by the corporation.  The state treasurer shall be 
the treasurer of the corporation, ex officio. 
    Sec. 358.  Minnesota Statutes 1984, section 473.714, is 
amended to read: 
    473.714 [COMPENSATION OF COMMISSIONERS.] 
    Each commissioner, including the officers of the commission 
shall be reimbursed for his actual and necessary expenses 
incurred in the performance of his duties.  The chairman shall 
be paid a per diem for attending meetings, monthly, executive, 
and special, and each commissioner shall be paid a per diem for 
attending meetings, monthly, executive, and special, which per 
diem shall be established by the commission, such expense 
reimbursement and per diem notwithstanding any other funds which 
such commissioners may receive from any other public body.  The 
annual budget of the commission shall provide as a separate 
account anticipated expenditures for per diem, travel and 
associated expenses for the chairman and members, and 
compensation or reimbursement shall be made to the chairman or 
members only when budgeted. 
    Sec. 359.  Minnesota Statutes 1984, section 477A.014, is 
amended by adding a subdivision to read: 
    Subd. 4.  The director of state planning shall annually 
bill the commissioner of revenue for one-half of the costs 
incurred by the state planning agency in the preparation of 
materials required by section 116K.04, subdivision 4, clause 
(10).  The commissioner shall deduct these amounts from the next 
payments to be made to appropriate local units of government.  
Amounts deducted must be credited to the general fund. 
    Sec. 360.  [480.235] [TRIAL COURT INFORMATION SYSTEM.] 
    The cost of operating the trial court information system in 
a judicial district must be shared between the state and the 
participating counties of a judicial district.  The state share 
of operating costs is limited to the following categories: 
computer and terminal equipment hardware, computer and terminal 
equipment maintenance, software acquisition and maintenance, 
durable supplies, communications equipment acquisition and 
maintenance, data communications, and new judicial district 
systems personnel.  The participating counties of a judicial 
district must pay all other operating costs, including but not 
limited to:  space rental for computer equipment, utilities, 
consumable supplies, postage, off-site computer disk file 
storage, and all personnel-related expenses, other than salaries 
and fringe benefits for judicial district systems personnel. 
    Sec. 361.  Minnesota Statutes 1984, section 486.05, 
subdivision 1, as amended by Laws 1985, chapter 273, section 2, 
is amended to read: 
    Subdivision 1.  In all judicial districts a salary range 
for court reporters shall be established annually by the 
judicial district administrator with the approval of a majority 
of judges of the district.  The salary for each court reporter 
shall be set within that range annually by the district 
administrator after consultation with the chief judge.  Nothing 
in this subdivision changes the manner by which court reporters 
are paid, the proportions among the various counties of a 
judicial district by which the funds are allocated or any 
statutory provisions related to court reporter compensation 
other than the manner of setting salary.  Each county shall be 
required by order to pay a specified amount of the salary in 
monthly installments, which shall be the proportion of the whole 
salary as the population in each county bears to the total 
population in the district in the most recent federal census.  
If a judge is temporarily transferred to hold court in a county 
outside of the judge's judicial district then that county shall 
pay a part of the monthly salary of the judge's reporter equal 
to the part of the month worked by the reporter in the county.  
The reporter, in addition to a salary, shall be paid necessary 
mileage, traveling, and hotel expenses incurred in the discharge 
of official duties while absent from the district home chambers 
where the judge the reporter serves is assigned.  The expenses 
are to be paid by the county for which the expenses were 
incurred upon presentation of a verified itemized statement 
approved by the judge; and the auditor of the county, upon 
presentation of the approved statement, shall issue a warrant 
for payment. 
    This subdivision supersedes all laws relating to the salary 
of district court reporters inconsistent with this subdivision, 
except the manner of setting salary in this subdivision does not 
apply to the second and fourth judicial districts. 
    Sec. 362.  Minnesota Statutes 1984, section 487.01, 
subdivision 5, is amended to read:  
    Subd. 5.  Each county court district shall elect one county 
court judge except: 
    (1) The district consisting of St. Louis county shall elect 
six judges; two of the county court judges shall reside and 
serve in and be elected at large by the voters of St. Louis 
county; two of the county court judges shall reside and serve in 
and be elected by the voters in that part of St. Louis county 
south of the following described line:  South of the south line 
of township 55; except the towns of Toivola, Cedar Valley, 
Kelsey, and Cotton, the area to be known as the south district; 
one county court judge shall reside and serve in and be elected 
by the voters of an area to be known as the northwest district, 
which area lies within the following described lines in St. 
Louis county: North of the south line of township 55 and west of 
the west line of range 18 and excluding that part of Portage 
township west of the west line of range 18; and including the 
towns of McDavitt, Toivola, and Cedar Valley; and one county 
court judge shall reside and serve in and be elected by the 
voters of an area to be known as the northeast district, which 
area lies within the following described lines in St. Louis 
county:  North of the south line of township 55 and east of the 
west line of range 18 and including that part of Portage 
township west of the west line of range 18, and the towns of 
Kelsey and Cotton, and excluding the town of McDavitt. 
    (2) The district consisting of Dakota county, the district 
consisting of Anoka county and the district consisting of 
Stearns, Sherburne and Benton shall each elect five six judges; 
    (3) The following districts shall each elect three judges: 
    Olmsted and Dodge counties, 
    Washington county, 
    Blue Earth county, 
    Pine, Isanti and Chisago Scott and Carver counties; 
    (4) The following districts shall each elect two county 
court judges: 
    Clay county, 
    Carver county, 
    Cass and Hubbard counties, 
    Crow Wing county, 
    Douglas and Grant counties, 
    Freeborn county, 
    Marshall county, 
    Red Lake and Pennington counties, 
    Mower county, 
    Otter Tail county, 
    Rice county, 
    Scott county, 
    Winona county, 
    Wright county, 
    Kandiyohi county. 
    (5) The number of judges to be elected may be increased by 
the county board of the affected county or by the concurrence of 
the county boards of those affected counties combined into 
districts; provided that no new judge positions authorized 
pursuant to this section may be created without specific 
statutory authorization.  Notwithstanding the other provisions 
of this subdivision, county judge positions created by county 
board action prior to April 23, 1977, shall be continued unless 
terminated pursuant to subdivision 6. 
    Sec. 363.  Minnesota Statutes 1984, section 494.01, is 
amended by adding a subdivision to read: 
    Subd. 5.  [GUIDELINES PROMULGATION.] Notwithstanding any 
law to the contrary, the state court administrator may 
promulgate the community dispute resolution guidelines. 
    Sec. 364.  Laws 1985, chapter 221, section 1, is amended to 
read: 
    Section 1.  [527.21] [DEFINITIONS.] 
    For purposes of this chapter: 
    (1) "Adult" means an individual who has attained the age of 
21 years, notwithstanding any law to the contrary.  
    (2) "Benefit plan" means an employer's plan for the benefit 
of an employee or partner.  
    (3) "Broker" means a person lawfully engaged in the 
business of effecting transactions in securities or commodities 
for the person's own account or for the account of others.  
    (4) "Conservator" means a person appointed or qualified by 
a court to act as general, limited, or temporary guardian of a 
minor's property or a person legally authorized to perform 
substantially the same functions.  
    (5) "Court" means a court that exercises probate 
jurisdiction.  
    (6) "Custodial property" means (i) any interest in property 
transferred to a custodian under this chapter and (ii) the 
income from and proceeds of that interest in property.  
    (7) "Custodian" means a person so designated under section 
9 or a successor or substitute custodian designated under 
section 18.  
    (8) "Financial institution" means a bank, trust company, 
savings institution, or credit union, chartered and supervised 
under state or federal law.  
    (9) "Legal representative" means an individual's personal 
representative or conservator.  
    (10) "Member of the minor's family" means the minor's 
parent, stepparent, spouse, grandparent, brother, sister, uncle, 
or aunt, whether of the whole or half blood or by adoption.  
    (11) "Minor" means an individual who has not attained the 
age of 21 years, notwithstanding any law to the contrary.  
    (12) "Person" means an individual, corporation, 
organization, or other legal entity.  
    (13) "Personal representative" means an executor, 
administrator, successor personal representative, or special 
administrator of a decedent's estate or a person legally 
authorized to perform substantially the same functions.  
    (14) "State" includes any state of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, and any 
territory or possession subject to the legislative authority of 
the United States. 
    (15) "Street name or nominee name" means registration used 
by a broker or financial institution for holding securities when 
not registered in the name of the beneficial owner. 
    (16) "Transfer" means a transaction that creates custodial 
property under section 9.  
    (16) (17) "Transferor" means a person who makes a transfer 
under this chapter. 
    (17) (18) "Trust company" means a financial institution, 
corporation, or other legal entity, authorized to exercise 
general trust powers.  
    Sec. 365.  Laws 1985, chapter 221, section 12, is amended 
to read: 
    Sec. 12.  [527.32] [CARE OF CUSTODIAL PROPERTY.] 
    (a) A custodian shall:  
    (1) take control of custodial property;  
    (2) register or record title to custodial property if 
appropriate; and 
    (3) collect, hold, manage, invest, and reinvest custodial 
property.  
    (b) In dealing with custodial property, a custodian shall 
observe the standard of care that would be observed by a prudent 
person dealing with property of another and is not limited by 
any other statute restricting investments by fiduciaries.  If a 
custodian has a special skill or expertise or is named custodian 
on the basis of representations of a special skill or expertise, 
the custodian shall use that skill or expertise.  However, a 
custodian, in the custodian's discretion and without liability 
to the minor or the minor's estate, may retain any custodial 
property received from a transferor.  
    (c) A custodian may invest in or pay premiums on life 
insurance or endowment policies on (i) the life of the minor 
only if the minor or the minor's estate is the sole beneficiary, 
or (ii) the life of another person in whom the minor has an 
insurable interest only to the extent that the minor, the 
minor's estate, or the custodian in the capacity of custodian, 
is the irrevocable beneficiary.  
    (d) A custodian at all times shall keep custodial property 
separate and distinct from all other property in a manner 
sufficient to identify it clearly as custodial property of the 
minor.  Custodial property consisting of certificated securities 
may be held on deposit at a stock brokerage firm or financial 
institution registered in a street name or nominee name.  
Custodial property consisting of an undivided interest is so 
identified if the minor's interest is held as a tenant in common 
and is fixed.  Custodial property subject to recordation is so 
identified if it is recorded, and custodial property subject to 
registration is so identified if it is either registered, or 
held in an account designated, in the name of the custodian, 
followed in substance by the words:  "as a custodian for 
............ (name of minor) under the Minnesota uniform 
transfers to minors act."  
    (e) A custodian shall keep records of all transactions with 
respect to custodial property, including information necessary 
for the preparation of the minor's tax returns, and shall make 
them available for inspection at reasonable intervals by a 
parent or legal representative of the minor or by the minor if 
the minor has attained the age of 14 years. 
    Sec. 366.  Minnesota Statutes 1984, section 609.101, is 
amended to read: 
    609.101 [SURCHARGE ON FINES, ASSESSMENTS.] 
    When a court sentences a person convicted of a felony, 
gross misdemeanor, or misdemeanor, other than a petty 
misdemeanor such as a traffic or parking violation, and if the 
sentence does not include payment of a fine, the court shall 
impose an assessment of not less than $20 nor more than $40.  If 
the sentence for the felony, gross misdemeanor, or misdemeanor 
includes payment of a fine of any amount, including a fine of 
less than $100, the court shall impose a surcharge on the fine 
of ten percent of the fine.  This section applies whether or not 
the person is sentenced to imprisonment and when the sentence is 
suspended.  The court may, upon a showing of indigency or undue 
hardship upon the convicted person or his immediate family, 
waive payment or authorize payment of the assessment or 
surcharge in installments.  
    The court shall collect and forward to the commissioner of 
finance the total amount of the assessment or surcharge to the 
state treasurer to be deposited in and the commissioner shall 
credit all money so forwarded to the general fund for the 
purposes of providing services, assistance, or reparations or a 
combination, to victims of crimes through programs established 
under sections 611A.21 to 611A.36, under chapter 256D, and 
chapter 299B.  If the convicted person is sentenced to 
imprisonment, the chief executive officer of the correctional 
facility in which the convicted person is incarcerated may 
collect the assessment or surcharge from any earnings the inmate 
accrues for work performed in the correctional facility and 
forward the amount to the state treasurer.  The state treasurer 
shall identify and report to the commissioner of finance all 
amounts deposited in the general fund under this 
section commissioner of finance. 
    Sec. 367.  Minnesota Statutes 1984, section 611.216, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBLE RECIPIENTS.] The board of public 
defense shall establish procedures for public defense 
corporations based in this state to apply for funding by the 
legislature.  The applications must be submitted to the board. 
The board must review and prioritize them and include a 
recommended funding level for each corporation in the budget 
request the board submits to the legislature.  Money 
appropriated to provide criminal and juvenile defense to 
indigent individuals must be distributed by the board of public 
defense to the nonprofit criminal and juvenile defense 
corporations included in the board's budget request or otherwise 
designated by law.  Money may not be disbursed to a corporation 
in the Leech Lake reservation area or the White Earth 
reservation area without prior approval by the respective 
reservation business committee.  Within its geographic area of 
responsibility each corporation shall accept cases involving 
felony, gross misdemeanor, and misdemeanor charges and juvenile 
cases if financial eligibility standards are met, unless there 
is a legal reason for rejecting a case.  A corporation may 
accept cases arising outside its geographic area of 
responsibility, as appropriate.  Each corporation, in order to 
ensure broad support, shall provide matching money received from 
nonstate sources, which may include money from federal agencies, 
local governments, private agencies, and community groups, equal 
to ten percent of its state appropriation.  The board of public 
defense shall give notice 30 days in advance and conduct a 
hearing if it has reasonable grounds to believe money 
appropriated for this purpose is being improperly used, or if it 
has reasonable cause to believe criminal and juvenile defense of 
proper quality is not being supplied.  Payment must cease from 
the date of notice until either the board of public defense 
determines that the money appropriated will be properly handled, 
or the board of public defense determines that criminal and 
juvenile defense of proper quality will be provided.  A 
participating corporation may give notice at any time of its 
withdrawal from this program of financial assistance. 
    Sec. 368.  Minnesota Statutes 1984, section 611.216, is 
amended by adding a subdivision to read: 
    Subd. 4.  [AUDITS.] The legislative auditor may conduct 
periodic post-award audits of these grants as may be requested 
by the board of public defense and approved by the legislative 
audit commission. 
    Sec. 369.  Minnesota Statutes 1984, section 626.861, is 
amended by adding a subdivision to read: 
    Subd. 4.  [PEACE OFFICERS TRAINING ACCOUNT.] Receipts from 
penalty assessments must be credited to a peace officers 
training account in the special revenue fund.  Money credited to 
the peace officers training account may be appropriated for the 
following purposes, among others: 
    (a) Up to ten percent may be provided for reimbursement to 
board approved skills courses in proportion to the number of 
students successfully completing the board's skills licensing 
examination. 
    (b) Assessments related to violations described in section 
97.49, subdivision 5, are appropriated to provide peace officer 
training for persons employed by the commissioner of natural 
resources who are licensed under section 626.84, subdivision 1, 
clause (c), and who possess peace officer authority for the 
purpose of enforcing game and fish laws.  
    (c) The balance may be used to pay each local unit of 
government an amount in proportion to the number of licensed 
peace officers and constables employed, at a rate to be 
determined by the board.  The disbursed amount must be used 
exclusively for reimbursement of the cost of in-service training 
required under chapters 214 and 626. 
    Sec. 370.  Laws 1984, chapter 502, article 5, section 19, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPROPRIATION.] The sum of $3,400,000 is 
approrpriated from the general fund to the commissioner of 
energy and economic development for the purpose of providing 
grants to industrial operations that are substantially 
renovating their facilities, provided that the renovation 
enables the operation to continue to provide a substantial 
portion of the industrial employment of the community in which 
it is located.  The grant is intended to help meet the cost of 
property tax increases due to plant expansion or renovation and 
the cost of sales tax or equipment purchased to replace 
obsolete, inadequate, or inefficient equipment in the plant.  
    Of the sum appropriated, up to $1,000,000 may be granted to 
a meat processing and packing facility that, at the time when 
renovation or expansion of the facility begins, provides over 20 
percent of the industrial employment in the city.  The entire 
amount of this grant may be paid on or after July 1, 1984.  
    Up to $2,400,000 may be granted to a manufacturer of 
internal combustion engines, generators, electrical generating 
sets, and switchgear that, at the time when renovation or 
expansion of the facility begins, provides over ten percent of 
the industrial employment in the city.  This grant is to be 
disbursed as follows.  The recipient must annually certify to 
the commissioner the following amounts paid during the year:  
(a) the additional property taxes paid as a result of the 
expansion and (b) one-third of the sales tax paid on replacement 
capital equipment that does not qualify for the four percent 
sales tax rate under Minnesota Statutes, section 297A.02, 
subdivision 2.  The commissioner shall pay the lesser of the 
amount certified for the year or $480,000.  If in a year the 
amount certified is less than $480,000, the excess shall 
carryforward and may be paid in a succeeding year.  The 
commissioner may not pay an amount in excess of that certified.  
The appropriation for this grant does not cancel.  
    An additional sum of $100,000 is appropriated to the 
commissioner of energy and economic development to provide a 
grant to a statutory or home rule charter city which is selected 
as the site for a foreign manufacturing development facility.  
This grant is not subject to the limitations contained in the 
first paragraph of this subdivision.  A foreign manufacturing 
development project is a production and office facility 
financed, in whole or part, by an agency of a foreign government 
or a foreign corporation for the purpose of testing and 
developing the expertise of foreign firms in manufacturing 
products in the United States.  The statutory or home rule 
charter city may use the grant moneys to provide assistance to 
the foreign manufacturing development facility in the manner it 
determines appropriate.  
    Designation of grant recipients is not subject to the 
provisions of chapter 14.  
    Sec. 371.  Laws 1985, chapter 4, section 6, subdivision 3, 
as amended by Laws 1985, chapter 114, section 2, is amended to 
read:  
    Subd. 3.  [LOAN SUBMISSION.] The lender must submit to the 
commissioner all farm operating loans made by the lender for 
which the lender requests the state to pay part of the interest, 
except that no loan or line of credit made by a lender to 
refinance credit on 1985 operating loans made by a lender may be 
approved by the commissioner.  The commissioner must review the 
loan within five days after receipt.  The commissioner may not 
pay interest on loans submitted after December 31, 1985. 
    Sec. 372.  [NATURAL RESOURCES RESEARCH INSTITUTE.] 
    Notwithstanding any other law, the commissioner of iron 
range resources and rehabilitation may transfer ownership and 
convey title to any property or equipment under the 
commissioner's control to the natural resources research 
institute, a division of the University of Minnesota, at a price 
and under terms mutually agreed to by the commissioner and the 
institute. 
    Sec. 373.  [DAKOTA COUNTY; RESOURCE RECOVERY.] 
    Subdivision 1.  [NONMETROPOLITAN COUNTY POWERS.] Dakota 
county may exercise the powers of a county under Minnesota 
Statutes, section 400.08, in addition to the powers that Dakota 
county may exercise under other law.  The county may expend 
money for resource recovery purposes under Minnesota Statutes, 
sections 473.801 to 473.845. 
    Subd. 2.  [LEASE OR SALE OF PROPERTY.] Dakota county may 
sell or lease any facilities or property or property rights to 
accomplish the purposes specified by Minnesota Statutes, 
sections 473.149, 473.151, and 473.801 to 473.823, 473.831, 
473.833, and 473.834.  The property may be sold or leased in the 
manner provided by Minnesota Statutes, section 458.196 or may be 
sold or leased in the manner and on the terms and conditions 
determined by the county board.  Each metropolitan county may 
convey to or permit the use of the property by a local 
government unit, with or without compensation, without 
submitting the matter to the voters of the county.  Real 
property or property rights acquired under this section may not 
be disposed of in any manner unless and until the county has 
submitted to the agency and the metropolitan council for review 
and comment the terms on and the use for which the property will 
be disposed of.  The agency and the council shall review and 
comment on the proposed disposition within 60 days after each 
has received the data relating thereto from the county. 
    Sec. 374.  [INSTRUCTION TO REVISOR.] 
    In Minnesota Statutes, the revisor of statutes is directed 
to change the words "state zoological board" to "Minnesota 
zoological board." 
    Sec. 375.  [APPLICATION.] 
    Sections 353 to 358 apply to the counties of Anoka, Carver, 
Dakota, Hennepin, Ramsey, Scott, and Washington. 
    Sec. 376.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1984, sections 7.01; 
7.013; 7.02; 7.03; 7.04; 7.05; 7.13; 7.14; 7.15; 7.16; 7.17; 
7.18; 10.18; 10.19; 10.20; 10.21; 10.22; 10.23; 16A.42, 
subdivision 3;  40.19, subdivisions 3, 4, 10, 12, 14, and 15; 
40A.13, subdivisions 2, 3, 4, and 5; 43A.19, subdivision 2; 
46.15; 47.20, subdivisions 11 and 12; 48.19; 48.57; 48.58; 
48.87; 69.031, subdivision 2; 84.088; 85A.03; 85A.04, 
subdivision 3; 124.471; 296.10; 349.212, subdivision 3, as 
amended by Laws 1985, chapter 3, section 2; 360.301; 360.302; 
360.304; 360.306; 360.388; and 360.389; Laws 1984, chapter 502, 
article 10, section 12; and chapter 654, article 2, section 151, 
are repealed. 
    Subd. 2.  Laws 1982, chapter 489, section 11, is repealed 
effective June 30, 1985. 
    Subd. 3.  Minnesota Statutes 1984, section 85A.01, 
subdivision 1a, is repealed July 1, 1986. 
    Sec. 377.  Laws 1985, chapter 258, section 1, subdivision 
1, is amended to read: 
    Subdivision 1.  [DELAY BEFORE SLAUGHTER REQUIRED.] Any 
livestock dealer, market operator, stockyard operator, 
commission company, buying station, or slaughtering 
establishment must identify the herd of origin, regardless of 
country of origin, of sows, boars, stags, and other swine for 
slaughter, except for sows, boars, and stags.  Sows, boars, 
stags, or other Swine, except for sows, boars, and stags, 
delivered for slaughter in a United States Department of 
Agriculture sealed shipment may not be slaughtered for a period 
of (1) seven days after receipt for slaughter or (2) until the 
commissioner determines, based upon laboratory analysis results 
for 50 percent of the animals in the shipment, that the animals 
meet United States Department of Agriculture and the United 
States Food and Drug Administration standards, whichever is 
later. 
    Sec. 378.  [EFFECTIVE DATE.] 
    Sections 370 and 377 are effective the day following final 
enactment. Section 199 is effective June 30, 1985.  Section 366 
is effective July 1, 1985, and applies to crimes committed on or 
after that date.  Section 191 is effective October 1, 1985, and 
applies to insurance policies providing benefits for injuries 
arising out of the maintenance or use of a motor vehicle or 
motorcycle that are executed, issued, issued for delivery, 
delivered, continued, or renewed in this state after September 
30, 1985.  Section 188 is effective for promissory notes taken 
on and after January 1, 1986.  Sections 291, 364, and 365 are 
effective January 1, 1986.  Sections 220, 221, and 223 to 227 
are effective for the licensing year beginning March 1, 1986, 
and for each licensing year thereafter.  Sections 202, 208 to 
211 and 216 are effective July 1, 1986.  Section 330 is 
effective January 1, 1987.  Section 369 is effective July 1, 
1987. 
    Approved June 27, 1985

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569