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1997 Minnesota Session Laws

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                              CHAPTER 3-S.F.No. 12 
                  An act relating to legislative enactments; providing 
                  for the correction of miscellaneous oversights, 
                  inconsistencies, ambiguities, unintended results, and 
                  technical errors of a noncontroversial nature; 
                  amending Minnesota Statutes 1996, sections 124.91, 
                  subdivision 7; 256B.0627, subdivision 1; and 297A.135; 
                  Minnesota Statutes 1997 Supplement, sections 80A.04, 
                  subdivision 5; 115.55, subdivision 6; 119B.05, 
                  subdivision 7; 144D.01, subdivision 4; 245B.07, 
                  subdivisions 5 and 9; 256I.05, subdivision 1d; 273.13, 
                  subdivision 25; 297A.44, subdivision 1; 403.02, 
                  subdivision 2; 524.3-1201; and 626.556, subdivision 
                  10f; Laws 1997, chapter 143, section 21; chapter 200, 
                  article 1, sections 1 and 5, subdivisions 1 and 4, as 
                  amended; chapter 203, article 3, sections 18 and 19; 
                  chapter 231, article 1, section 16, as amended; and 
                  chapter 250, section 18; Laws 1997, First Special 
                  Session chapter 4, article 1, section 64; repealing 
                  Minnesota Statutes 1997 Supplement, section 168.019. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [CORRECTION.] 
           Subdivision 1.  Minnesota Statutes 1997 Supplement, section 
        403.02, subdivision 2, is amended to read: 
           Subd. 2.  [METROPOLITAN AREA.] "Metropolitan area" means 
        the metropolitan area as defined in section 473.121, subdivision 
        2 counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
        and Washington. 
           Subd. 2.  [EFFECTIVE DATE.] This section is effective the 
        day following final enactment. 
           Sec. 2.  [CORRECTION 102.] Laws 1997, chapter 250, section 
        18, is amended to read: 
           Sec. 18.  [EFFECTIVE DATE.] 
           Sections 9; 10, subdivisions 5 and 6; 14; and 15 are 
        effective the day following final enactment.  Sections 9; 10, 
        subdivisions 1 to 4; 11; 12; 16; and 17 are effective January 1, 
        1999. 
           Sec. 3.  [CORRECTION 103.] 
           Laws 1997, chapter 222, sections 37 to 41, take effect 
        January 1, 1998. 
           Sec. 4.  [CORRECTION 104.] Minnesota Statutes 1997 
        Supplement, section 80A.04, subdivision 5, is amended to read: 
           Subd. 5.  Except with respect to advisers whose only 
        clients are those described in subdivision 3, clause (2), it is 
        unlawful for a federal covered adviser to conduct advisory 
        business in this state unless the person complies with section 
        80A.05, subdivision 1a. 
           Sec. 5.  [CORRECTION 105.] Laws 1997, chapter 143, section 
        21, is amended to read: 
           Sec. 21.  [APPLICATION.] 
           Section 11 17 applies in Anoka, Carver, Dakota, Hennepin, 
        Ramsey, Scott, and Washington counties. 
           Sec. 6.  [CORRECTION 106.] Minnesota Statutes 1997 
        Supplement, section 144D.01, subdivision 4, is amended to read: 
           Subd. 4.  [HOUSING WITH SERVICES ESTABLISHMENT OR 
        ESTABLISHMENT.] "Housing with services establishment" or 
        "establishment" means an establishment providing sleeping 
        accommodations to one or more adult residents, at least 80 
        percent of which are 55 years of age or older, and offering or 
        providing, for a fee, one or more regularly scheduled 
        health-related services or two or more regularly scheduled 
        supportive services, whether offered or provided directly by the 
        establishment or by another entity arranged for by the 
        establishment. 
           Housing with services establishment does not include: 
           (1) a nursing home licensed under chapter 144A; 
           (2) a hospital, boarding care home, or supervised living 
        facility licensed under sections 144.50 to 144.56; 
           (3) a board and lodging establishment licensed under 
        chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 
        9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 
        9530.4450, or under chapter 245B; 
           (4) a board and lodging establishment which serves as a 
        shelter for battered women or other similar purpose; 
           (5) a family adult foster care home licensed by the 
        department of human services; 
           (6) private homes in which the residents are related by 
        kinship, law, or affinity with the providers of services; 
           (7) residential settings for persons with mental 
        retardation or related conditions in which the services are 
        licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or 
        applicable successor rules or laws; 
           (8) a home-sharing arrangement such as when an elderly or 
        disabled person or single-parent family makes lodging in a 
        private residence available to another person in exchange for 
        services or rent, or both; 
           (9) a duly organized condominium, cooperative, common 
        interest community, or owners' association of the foregoing 
        where at least 80 percent of the units that comprise the 
        condominium, cooperative, or common interest community are 
        occupied by individuals who are the owners, members, or 
        shareholders of the units; or 
           (10) services for persons with developmental disabilities 
        that are provided under a license according to Minnesota Rules, 
        parts 9525.2000 to 9525.2140 in effect until January 1, 1998, or 
        under chapter 245B. 
           Sec. 7.  [CORRECTION 107.] Minnesota Statutes 1997 
        Supplement, section 245B.07, subdivision 5, is amended to read: 
           Subd. 5.  [STAFF ORIENTATION.] (a) Within 60 days of hiring 
        staff who provide direct service, the license holder must 
        provide 30 hours of staff orientation.  Direct care staff must 
        complete 15 of the 30 hours orientation before providing any 
        unsupervised direct service to a consumer.  If the staff person 
        has received orientation training from a license holder licensed 
        under this chapter, or provides semi-independent living services 
        only, the 15-hour requirement may be reduced to eight hours.  
        The total orientation of 30 hours may be reduced to 15 hours if 
        the staff person has previously received orientation training 
        from a license holder licensed under this chapter. 
           (b) The 30 hours of orientation must combine supervised 
        on-the-job training with coverage of the following material: 
           (1) review of the consumer's service plans and risk 
        management plan to achieve an understanding of the consumer as a 
        unique individual; 
           (2) review and instruction on the license holder's policies 
        and procedures, including their location and access; 
           (3) emergency procedures; 
           (4) explanation of specific job functions, including 
        implementing objectives from the consumer's individual service 
        plan; 
           (5) explanation of responsibilities related to chapter 245C 
        section 245A.65; sections 626.556 and 626.557, governing 
        maltreatment reporting and service planning for children and 
        vulnerable adults; and section 245.825, governing use of 
        aversive and deprivation procedures; 
           (6) medication administration as it applies to the 
        individual consumer, from a training curriculum developed by a 
        health services professional described in section 245B.05, 
        subdivision 5, and when the consumer meets the criteria of 
        having overriding health care needs, then medication 
        administration taught by a health services professional.  Once a 
        consumer with overriding health care needs is admitted, staff 
        will be provided with remedial training as deemed necessary by 
        the license holder and the health professional to meet the needs 
        of that consumer. 
           For purposes of this section, overriding health care needs 
        means a health care condition that affects the service options 
        available to the consumer because the condition requires: 
           (i) specialized or intensive medical or nursing 
        supervision; and 
           (ii) nonmedical service providers to adapt their services 
        to accommodate the health and safety needs of the consumer; 
           (7) consumer rights; and 
           (8) other topics necessary as determined by the consumer's 
        individual service plan or other areas identified by the license 
        holder. 
           (c) The license holder must document each employee's 
        orientation received. 
           Sec. 8.  [CORRECTION 107A.] Minnesota Statutes 1997 
        Supplement, section 245B.07, subdivision 9, is amended to read: 
           Subd. 9.  [AVAILABILITY OF CURRENT WRITTEN POLICIES AND 
        PROCEDURES.] The license holder shall: 
           (1) review and update, as needed, the written policies and 
        procedures in this subdivision chapter and inform all consumers 
        or the consumer's legal representatives, case managers, and 
        employees of the revised policies and procedures when they 
        affect the service provision; 
           (2) inform consumers or the consumer's legal 
        representatives of the written policies and procedures in this 
        subdivision chapter upon service initiation.  Copies must be 
        available to consumers or the consumer's legal representatives, 
        case managers, the county where services are located, and the 
        commissioner upon request; and 
           (3) document and maintain relevant information related to 
        the policies and procedures in this subdivision chapter. 
           Sec. 9.  [CORRECTION 108.] Minnesota Statutes 1996, section 
        256B.0627, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] (a) "Assessment" means a 
        review and evaluation of a recipient's need for home care 
        services conducted in person.  Assessments for private duty 
        nursing shall be conducted by a private duty nurse.  Assessments 
        for home health agency services shall be conducted by a home 
        health agency nurse.  Assessments for personal care services 
        shall be conducted by the county public health nurse or a 
        certified public health nurse under contract with the county.  
        An initial assessment for personal care services is conducted on 
        individuals who are requesting personal care services or for 
        those consumers who have never had a public health nurse 
        assessment.  The initial assessment must include:  a 
        face-to-face health status assessment and determination of 
        baseline need, collection of initial case data, identification 
        of appropriate services and service plan development, 
        coordination of initial services, referrals and follow-up to 
        appropriate payers and community resources, completion of 
        required reports, obtaining service authorization, and consumer 
        education.  A reassessment visit for personal care services is 
        conducted at least annually or when there is a significant 
        change in consumer condition and need for services.  The 
        reassessment visit includes a review of initial baseline data, 
        evaluation of service outcomes, redetermination of service need, 
        modification of service plan and appropriate referrals, update 
        of initial forms, obtaining service authorization, and on going 
        consumer education.  Assessments for medical assistance home 
        care services for mental retardation or related conditions and 
        alternative care services for developmentally disabled home and 
        community-based waivered recipients may be conducted by the 
        county public health nurse to ensure coordination and avoid 
        duplication.  Assessments must be completed on forms provided by 
        the commissioner within 30 days of a request for home care 
        services by a recipient or responsible party. 
           (b) "Care plan" means a written description of personal 
        care assistant services developed by the agency nurse with the 
        recipient or responsible party to be used by the personal care 
        assistant with a copy provided to the recipient or responsible 
        party. 
           (c) "Home care services" means a health service, determined 
        by the commissioner as medically necessary, that is ordered by a 
        physician and documented in a service plan that is reviewed by 
        the physician at least once every 60 days for the provision of 
        home health services, or private duty nursing, or at least once 
        every 365 days for personal care.  Home care services are 
        provided to the recipient at the recipient's residence that is a 
        place other than a hospital or long-term care facility or as 
        specified in section 256B.0625.  
           (d) "Medically necessary" has the meaning given in 
        Minnesota Rules, parts 9505.0170 to 9505.0475.  
           (e) "Personal care assistant" means a person who:  (1) is 
        at least 18 years old, except for persons 16 to 18 years of age 
        who participated in a related school-based job training program 
        or have completed a certified home health aide competency 
        evaluation; (2) is able to effectively communicate with the 
        recipient and personal care provider organization; (3) effective 
        July 1, 1996, has completed one of the training requirements as 
        specified in Minnesota Rules, part 9505.0335, subpart 3, items A 
        to D; (4) has the ability to, and provides covered personal care 
        services according to the recipient's care plan, responds 
        appropriately to recipient needs, and reports changes in the 
        recipient's condition to the supervising registered nurse; (5) 
        is not a consumer of personal care services; and (6) is subject 
        to criminal background checks.  An individual who has been 
        convicted of a crime specified in Minnesota Rules, part 
        4668.0020, subpart 14, or a comparable crime in another 
        jurisdiction is disqualified from being a personal care 
        assistant, unless the individual meets the rehabilitation 
        criteria specified in Minnesota Rules, part 4668.0020, subpart 
        15. 
           (f) "Personal care provider organization" means an 
        organization enrolled to provide personal care services under 
        the medical assistance program that complies with the 
        following:  (1) owners who have a five percent interest or more, 
        and managerial officials are subject to a background study as 
        provided in section 245A.04.  This applies to currently enrolled 
        personal care provider organizations and those agencies seeking 
        enrollment as a personal care provider organization.  An 
        organization will be barred from enrollment if an owner or 
        managerial official of the organization has been convicted of a 
        crime specified in Minnesota Rules, part 4668.0020, subpart 
        14 section 245A.04, or a comparable crime in another 
        jurisdiction, unless the owner or managerial official meets 
        the rehabilitation reconsideration criteria specified 
        in Minnesota Rules, part 4668.0020, subpart 15 section 245A.04; 
        (2) the organization must maintain a surety bond and liability 
        insurance throughout the duration of enrollment and provides 
        proof thereof.  The insurer must notify the department of human 
        services of the cancellation or lapse of policy; and (3) the 
        organization must maintain documentation of services as 
        specified in Minnesota Rules, part 9505.2175, subpart 7, as well 
        as evidence of compliance with personal care assistant training 
        requirements. 
           (g) "Responsible party" means an individual residing with a 
        recipient of personal care services who is capable of providing 
        the supportive care necessary to assist the recipient to live in 
        the community, is at least 18 years old, and is not a personal 
        care assistant.  Responsible parties who are parents of minors 
        or guardians of minors or incapacitated persons may delegate the 
        responsibility to another adult during a temporary absence of at 
        least 24 hours but not more than six months.  The person 
        delegated as a responsible party must be able to meet the 
        definition of responsible party, except that the delegated 
        responsible party is required to reside with the recipient only 
        while serving as the responsible party.  Foster care license 
        holders may be designated the responsible party for residents of 
        the foster care home if case management is provided as required 
        in section 256B.0625, subdivision 19a.  For persons who, as of 
        April 1, 1992, are sharing personal care services in order to 
        obtain the availability of 24-hour coverage, an employee of the 
        personal care provider organization may be designated as the 
        responsible party if case management is provided as required in 
        section 256B.0625, subdivision 19a. 
           (h) "Service plan" means a written description of the 
        services needed based on the assessment developed by the nurse 
        who conducts the assessment together with the recipient or 
        responsible party.  The service plan shall include a description 
        of the covered home care services, frequency and duration of 
        services, and expected outcomes and goals.  The recipient and 
        the provider chosen by the recipient or responsible party must 
        be given a copy of the completed service plan within 30 calendar 
        days of the request for home care services by the recipient or 
        responsible party. 
           (i) "Skilled nurse visits" are provided in a recipient's 
        residence under a plan of care or service plan that specifies a 
        level of care which the nurse is qualified to provide.  These 
        services are: 
           (1) nursing services according to the written plan of care 
        or service plan and accepted standards of medical and nursing 
        practice in accordance with chapter 148; 
           (2) services which due to the recipient's medical condition 
        may only be safely and effectively provided by a registered 
        nurse or a licensed practical nurse; 
           (3) assessments performed only by a registered nurse; and 
           (4) teaching and training the recipient, the recipient's 
        family, or other caregivers requiring the skills of a registered 
        nurse or licensed practical nurse. 
           Sec. 10.  [CORRECTION 109.] Minnesota Statutes 1997 
        Supplement, section 626.556, subdivision 10f, is amended to read:
           Subd. 10f.  [NOTICE OF DETERMINATIONS.] Within ten working 
        days of the conclusion of an assessment, the local welfare 
        agency shall notify the parent or guardian of the child, the 
        person determined to be maltreating the child, and if 
        applicable, the director of the facility, of the determination 
        and a summary of the specific reasons for the determination.  
        The notice must also include a certification that the 
        information collection procedures under subdivision 10, 
        paragraphs (h), (i), and (j), were followed and a notice of the 
        right of a data subject to obtain access to other private data 
        on the subject collected, created, or maintained under this 
        section.  In addition, the notice shall include the length of 
        time that the records will be kept under subdivision 11c.  When 
        there is no determination of either maltreatment or a need for 
        services, the notice shall also include the alleged 
        perpetrator's right to have the records destroyed.  The 
        investigating agency shall notify the designee parent or 
        guardian of the child who is the subject of the report, and any 
        person or facility determined to have maltreated a child, of 
        their appeal rights under this section. 
           Sec. 11.  [CORRECTION 110.] Laws 1997, chapter 231, article 
        1, section 16, as amended by Laws 1997, First Special Session 
        chapter 5, section 35, is amended to read: 
           Sec. 16.  [PROPERTY TAX REBATE.] 
           (a) A credit is allowed against the tax imposed on an 
        individual under Minnesota Statutes, chapter 290, to an 
        individual, other than as a dependent, as defined in sections 
        151 and 152 of the Internal Revenue Code, disregarding section 
        152(b)(3) of the Internal Revenue Code, equal to 20 percent of 
        the qualified property tax paid in calendar year 1997 for taxes 
        assessed in 1996.  The credit is allowed only to the individual 
        and spouse, if any, who paid the tax, whether directly, through 
        an escrow arrangement, or under a contractual agreement for the 
        purchase or sale of the property, and without regard to whether 
        the individual qualifies as a claimant under Minnesota Statutes, 
        chapter 290A. 
           (b) For property owned and occupied by the taxpayer during 
        1997, qualified tax means property taxes payable as defined in 
        Minnesota Statutes, section 290A.03, subdivision 13, assessed in 
        1996 and payable in 1997, except the requirement that the 
        taxpayer own and occupy the property on January 2, 1997, does 
        not apply.  The credit is allowed only to the individual and 
        spouse, if any, who paid the tax, whether directly, through an 
        escrow arrangement, or under a contractual agreement for the 
        purchase or sale of the property.  
           (c) For a renter, the qualified property tax means the 
        amount of rent constituting property taxes under Minnesota 
        Statutes, section 290A.03, subdivision 11, based on rent paid in 
        1997.  If two or more renters could be claimants under Minnesota 
        Statutes, chapter 290A with regard to the rent constituting 
        property taxes, the rules under Minnesota Statutes, section 
        290A.03, subdivision 8, paragraph (f), applies to determine the 
        amount of the credit for the individual. 
           (d) For an individual who both owned and rented principal 
        residences in calendar year 1997, qualified taxes are the sum of 
        the amounts under paragraphs (a) and (b). 
           (e) If the amount of the credit under this subdivision 
        exceeds the taxpayer's tax liability under this chapter, the 
        commissioner shall refund the excess. 
           (f) To claim a credit under this subdivision, the taxpayer 
        must attach a copy of the property tax statement and certificate 
        of rent paid, as applicable, and provide any additional 
        information the commissioner requires. 
           (g) An amount sufficient to pay refunds under this 
        subdivision is appropriated to the commissioner from the general 
        fund. 
           (h) This credit applies to taxable years beginning after 
        December 31, 1996, and before January 1, 1998. 
           (i) Payment of the credit under this section is subject to 
        Minnesota Statutes, chapter 270A, and any other provision 
        applicable to refunds under Minnesota Statutes, chapter 290. 
           Sec. 12.  [CORRECTION 111B.] Minnesota Statutes 1997 
        Supplement, section 115.55, subdivision 6, is amended to read: 
           Subd. 6.  [DISCLOSURE OF INDIVIDUAL SEWAGE TREATMENT SYSTEM 
        TO BUYER.] (a) Before signing an agreement to sell or transfer 
        real property, the seller or transferor must disclose in writing 
        to the buyer or transferee information on how sewage generated 
        at the property is managed.  The disclosure must be made by 
        delivering a statement to the buyer or transferee that either: 
           (1) the sewage goes to a facility permitted by the agency; 
        or 
           (2) the sewage does not go to a permitted facility, is 
        therefore subject to applicable requirements, and describes the 
        system in use, including the legal description of the property, 
        the county in which the property is located, and a map drawn 
        from available information showing the location of the system on 
        the property to the extent practicable.  If the seller or 
        transferor has knowledge that an abandoned individual sewage 
        treatment system exists on the property, the disclosure must 
        include a map showing its location.  In the disclosure statement 
        the seller or transferor must indicate whether the individual 
        sewage treatment system is in use and, to the seller's or 
        transferor's knowledge, in compliance with applicable sewage 
        treatment laws and rules.  
           (b) Unless the buyer or transferee and seller or transferor 
        agree to the contrary in writing before the closing of the sale, 
        a seller or transferor who fails to disclose the existence or 
        known status of an individual sewage treatment system at the 
        time of sale, and who knew or had reason to know of the 
        existence or known status of the system. 
           (b) A seller or transferor who fails to meet the 
        requirements of this section, is liable to the buyer or 
        transferee for costs relating to bringing the system into 
        compliance with the individual sewage treatment system rules and 
        for reasonable attorney fees for collection of costs from the 
        seller or transferor.  An action under this subdivision must be 
        commenced within two years after the date on which the buyer or 
        transferee closed the purchase or transfer of the real property 
        where the system is located. 
           Sec. 13.  [CORRECTION 113.] Minnesota Statutes 1997 
        Supplement, section 524.3-1201, is amended to read: 
           524.3-1201 [COLLECTION OF PERSONAL PROPERTY BY AFFIDAVIT.] 
           (a) Thirty days after the death of a decedent, (i) any 
        person indebted to the decedent, (ii) any person having 
        possession of tangible personal property or an instrument 
        evidencing a debt, obligation, stock or chose in action 
        belonging to the decedent, or (iii) any safe deposit company, as 
        defined in section 55.01, controlling the right of access to 
        decedent's safe deposit box shall make payment of the 
        indebtedness or deliver the tangible personal property or an 
        instrument evidencing a debt, obligation, stock or chose in 
        action or deliver the entire contents of the safe deposit box to 
        a person claiming to be the successor of the decedent, or a 
        state or county agency with a claim authorized by section 
        256B.15, upon being presented a certified death certificate of 
        the decedent and an affidavit, in duplicate, made by or on 
        behalf of the successor stating that: 
           (1) the value of the entire probate estate, wherever 
        located, including specifically any contents of a safe deposit 
        box, less liens and encumbrances, does not exceed $20,000; 
           (2) 30 days have elapsed since the death of the decedent 
        or, in the event the property to be delivered is the contents of 
        a safe deposit box, 30 days have elapsed since the filing of an 
        inventory of the contents of the box pursuant to section 55.10, 
        paragraph (h); 
           (3) no application or petition for the appointment of a 
        personal representative is pending or has been granted in any 
        jurisdiction; 
           (4) if presented, by a state or county agency with a claim 
        authorized by section 256B.15, to a financial institution with a 
        multiple-party account in which the decedent had an interest at 
        the time of death, the amount of the affiant's claim and a good 
        faith estimate of the extent to which the decedent was the 
        source of funds or beneficial owner of the account; and 
           (5) the claiming successor is entitled to payment or 
        delivery of the property. 
           (b) A transfer agent of any security shall change the 
        registered ownership on the books of a corporation from the 
        decedent to the successor or successors upon the presentation of 
        an affidavit as provided in subsection (a). 
           (c) The claiming successor or state or county agency shall 
        disburse the proceeds collected under this section to any person 
        with a superior claim under section 524.2-403 or 524.3-805. 
           (d) A motor vehicle registrar shall issue a new certificate 
        of title in the name of the successor upon the presentation of 
        an affidavit as provided in subsection (a). 
           (e) The person controlling access to decedent's safe 
        deposit box need not open the box or deliver the contents of the 
        box if: 
           (1) the person has received notice of a written or oral 
        objection from any person or has reason to believe that there 
        would be an objection; or 
           (2) the lessee's key or combination is not available. 
           Sec. 14.  [CORRECTION 116.] Laws 1997, First Special 
        Session chapter 4, article 1, section 64, is amended to read: 
           Sec. 64.  [EFFECTIVE DATE.] 
           (a) Sections 2, 11, 29, 30, 32, and 43, 47, and 48 are 
        effective for revenue for fiscal year 1997.  
           (b) Sections 42 and 45 are effective for fiscal year 1999. 
           (c) If this act is enacted on or after July 1, 1997, all 
        sections in this article except for those sections listed in 
        paragraphs (a) and (b) are effective the day following final 
        enactment. 
           Sec. 15.  [CORRECTION 119.] Laws 1997, chapter 203, article 
        3, section 19, is amended to read: 
           Sec. 19.  [ICF/MR REIMBURSEMENT OCTOBER 1, 1997, TO OCTOBER 
        1, 1999.] 
           (a) Notwithstanding any contrary provision in Minnesota 
        Statutes, section 256B.501, for the rate years beginning October 
        1, 1997, and October 1, 1998, the commissioner of human services 
        shall, for purposes of the spend-up limit, array facilities 
        within each grouping established under Minnesota Statutes, 
        section 256B.501, subdivision 5b, paragraph (d), clause (4), by 
        each facility's cost per resident day.  A facility's cost per 
        resident day shall be determined by dividing its allowable 
        historical general operating cost for the reporting year by the 
        facility's resident days for the reporting 
        year.  Notwithstanding Laws 1996, chapter 451, article 3, 
        section 12, paragraph (c), for purposes of computing the 
        spend-up limits for the rate year beginning October 1, 1997, the 
        facility's prior cost report year's allowable general operating 
        cost base shall be either the facility's allowed general 
        operating costs used to set the payment rate paid for the rate 
        year beginning October 1, 1996, or the general operating cost 
        base determined using Laws 1996, chapter 451, article 3, section 
        12, paragraph (c), for October 1, 1996, whichever results in the 
        highest payment rate effective October 1, 1997.  Facilities with 
        a cost per resident day at or above the median shall be limited 
        to the lesser of: 
           (1) the current reporting year's cost per resident day; or 
           (2) the prior report year's cost per resident day plus the 
        inflation factor established under Minnesota Statutes, section 
        256B.501, subdivision 3c, clause (2), increased by three 
        percentage points. 
        In no case shall the amount of this reduction exceed:  three 
        percent for a facility with a licensed capacity greater than 16 
        beds; two percent for a facility with a licensed capacity of 
        nine to 16 beds; and one percent for a facility with a licensed 
        capacity of eight or fewer beds. 
           (b) The commissioner shall not apply the limits established 
        under Minnesota Statutes, section 256B.501, subdivision 5b, 
        paragraph (d), clause (8), for the rate years beginning October 
        1, 1997, and October 1, 1998. 
           Sec. 16.  [CORRECTION 121.] Laws 1997, chapter 203, article 
        3, section 18, is amended to read: 
           Sec. 18.  [RATE CLARIFICATION.] 
           For the rate years beginning October 1, 1997, and October 
        1, 1998 of 1997, 1998, 1999, and 2000, the commissioner of human 
        services shall exempt intermediate care facilities for persons 
        with mental retardation (ICF/MR) from reductions to the payment 
        rates under Minnesota Statutes, section 256B.501, subdivision 
        5b, paragraph (d), clause (6), if the facility: 
           (1) has had a settle-up payment rate established in the 
        reporting year preceding the rate year for the one-time rate 
        adjustment; 
           (2) is a newly established facility; 
           (3) is an A to B conversion that has been converted under 
        Minnesota Statutes, section 252.292, since rate year 1990; 
           (4) has a payment rate subject to a community conversion 
        project under Minnesota Statutes, section 252.292; 
           (5) has a payment rate established under Minnesota 
        Statutes, section 245A.12 or 245A.13; or 
           (6) is a facility created by the relocation of more than 25 
        percent of the capacity of a related facility during the 
        reporting year. 
           Sec. 17.  [CORRECTION 122.] Laws 1997, chapter 200, article 
        1, section 1, is amended to read: 
        Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "1998" and "1999," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 1998, or June 30, 1999, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 1998, and "second year" means the fiscal year 
        ending June 30, 1999. 
                                SUMMARY BY FUND
                                  1998          1999           TOTAL
        General              $195,977,000   $163,741,000   $359,718,000
                             $195,962,000   $163,756,000 
        Petroleum Tank
        Cleanup                   957,000        969,000      1,926,000
        Trunk Highway             706,000        723,000      1,429,000 
        Workers' 
        Compensation           23,095,000     23,130,000     46,225,000
        Special Revenue         1,120,000      1,125,000      2,245,000
        Taconite Environmental
        Protection              1,410,000        -0-          1,410,000
        TOTAL                $223,265,000   $189,688,000   $412,953,000
                             $223,250,000   $189,703,000 
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1998         1999
           Sec. 18.  [CORRECTION 122A.] Laws 1997, chapter 200, 
        article 1, section 5, subdivision 1, is amended to read: 
        Subdivision 1.  Total 
        Appropriation                         42,067,000     34,110,000
                                              42,052,000     34,125,000
                      Summary by Fund
        General              41,292,000    33,335,000
                             41,277,000    33,350,000
        Special Revenue         775,000       775,000
           Sec. 19.  [CORRECTION 122B.] Laws 1997, chapter 200, 
        article 1, section 5, subdivision 4, as amended by Laws 1997, 
        First Special Session chapter 5, section 22, is amended to read: 
        Subd. 4.  Workforce Preparation 
           16,922,000      9,079,000
           16,907,000      9,094,000
                     Summary by Fund
        General             16,147,000     8,304,000
                            16,132,000     8,319,000
        Special Revenue         775,000       775,000
        $775,000 the first year and $775,000 
        the second year is for job training 
        programs under Minnesota Statutes, 
        sections 268.60 to 268.64.  
        Notwithstanding Minnesota Statutes, 
        section 268.022, this appropriation is 
        from the workforce investment fund.  Of 
        this amount, $250,000 each year is for 
        grants to the Ramsey county 
        opportunities industrialization 
        center.  The grants are to be used to 
        (1) offer prevocational training 
        programs and specific vocational 
        training programs involving intensive 
        English as a second language in 
        instruction, and (2) train for and 
        locate entry level jobs including, 
        without limitation, clerical, building 
        maintenance, manufacturing, home 
        maintenance and repair, and certified 
        nursing assistance.  
        $1,815,000 the first year and 
        $1,817,000 the second year is for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  
        $1,050,000 the first year and 
        $1,050,000 the second year is for youth 
        intervention programs under Minnesota 
        Statutes, section 268.30.  Funding from 
        this appropriation may be used to 
        expand existing programs to serve unmet 
        needs and to create new programs in 
        underserved areas.  This appropriation 
        is available until spent. 
        $1,500,000 the first year and 
        $1,500,000 the second year is to 
        supplement the activities of the Job 
        Training Partnership Act Title II-A 
        program as described in United States 
        Code, title 29, sections 1501 to 1792.  
        The commissioner may use up to five 
        percent of this amount of state 
        operations.  The balance of the amount 
        is for services to temporary assistance 
        for needy families (TANF) recipients.  
        This is a one-time appropriation and 
        may not be included in the budget base 
        for the biennium ending June 30, 2001. 
        $75,000 the first year is for the PLATO 
        education partnership pilot program.  
        If the commissioner favorably evaluates 
        the demonstration implementation of 
        PLATO in Fairmont and Owatonna, the 
        commissioner shall select two other 
        communities in which PLATO will be 
        implemented.  Of this amount, not more 
        than $10 is for the demonstration 
        implementations.  This appropriation is 
        available until June 30, 1999.  This is 
        a one-time appropriation and may not be 
        included in the agency's budget base 
        for the biennium ending June 30, 2001. 
        $250,000 the first year and $250,000 
        the second year is for the learn to 
        earn summer youth employment program 
        established under Laws 1995, chapter 
        224, sections 5 and 39.  This 
        appropriation is available until spent. 
        $10,000 the first year and $10,000 the 
        second year are for one-time grants to 
        independent school district No. 2752, 
        Fairmont, for community initiatives.  
        Of the money appropriated for the 
        summer youth program for the first 
        year, $750,000 is immediately 
        available.  Any remaining balance of 
        the immediately available money is 
        available for the year in which it is 
        appropriated.  In addition to the base 
        appropriation, $6,000,000 the first 
        year is for the summer youth program. 
        If the appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available. 
        $700,000 the first year and $700,000 
        the second year is for the Youthbuild 
        program under Minnesota Statutes, 
        sections 268.361 to 268.366.  A 
        Minnesota YOUTHBUILD program funded 
        under this section as authorized in 
        Minnesota Statutes, sections 268.361 to 
        268.367, qualifies as an approved 
        training program under Minnesota Rules, 
        part 5200.0930, subpart 1. 
        $250,000 the first year is for a 
        one-time grant to the displaced 
        homemaker program in the department of 
        economic security and $125,000 the 
        first year and $125,000 the second year 
        are for one-time grants to the St. Paul 
        district 5 planning council.  These 
        grants are to operate a community work 
        empowerment support group demonstration 
        project.  A project consists of 
        empowerment groups of individuals that 
        are in the process of obtaining or have 
        obtained jobs, including those in the 
        welfare-to-work programs, or are 
        working out problems of attaining 
        self-sufficiency.  The groups must 
        separately meet at least monthly for at 
        least two hours.  Each group meeting 
        must include empower mentors whose 
        responsibility will be to conduct the 
        meeting.  Group members must be paid at 
        least $20 for each meeting attended.  
        The sites will report to the 
        commissioner on a semiannual basis 
        regarding the progress achieved at the 
        meetings.  The purpose of the group is 
        to: 
        (1) share information among group 
        members as to the successes and 
        problems encountered in the 
        individual's employment goals; 
        (2) provide a forum for individuals 
        involved in moving to self-sufficiency 
        to share their experiences and 
        strategies and to support and empower 
        each other; and 
        (3) to provide feedback to the 
        commissioner concerning the best 
        strategies to achieve the empowerment 
        support group's objectives. 
        Notwithstanding Minnesota Statutes, 
        section 268.022, subdivision 2, the 
        commissioner of finance shall transfer 
        to the general fund from the dedicated 
        fund $3,500,000 in the first year and 
        $3,500,000 in the second year of the 
        money collected through the special 
        assessment established in Minnesota 
        Statutes, section 268.022, subdivision 
        1. 
        $15,000 the first year and $15,000 the 
        second year is for a grant to the city 
        of Champlin for creating and expanding 
        curfew enforcement.  The program must 
        have clearly established neighborhood, 
        community, and family measures of 
        success and must report to the 
        commissioner of economic security on 
        the achievement of these outcomes on or 
        before June 30, 1998. 
        $250,000 the first year is for a 
        one-time grant to Ramsey county to 
        expand the sister-to-sister mentoring, 
        support, and training network program 
        countywide.  This appropriation is in 
        addition to money appropriated under 
        Minnesota Statutes, sections 256J.62 
        and 256J.76. 
        $500,000 is for a grant to the center 
        for victims of torture to design and 
        develop training to educate health care 
        and human service workers on levels of 
        sensitive care and how to make 
        referrals and to establish a network of 
        care providers to do pro bono care for 
        torture survivors so as to enable a 
        rapid integration into communities and 
        labor markets by torture victims.  This 
        is a one-time appropriation requiring a 
        one-to-one nonstate, in-kind match, and 
        is available until expended. 
           Sec. 20.  [CORRECTION 301.] Minnesota Statutes 1997 
        Supplement, section 256I.05, subdivision 1d, is amended to read: 
           Subd. 1d.  [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 
        FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 
        DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 
        and 1c for the fiscal year ending June 30, 1998, a county agency 
        may negotiate a supplementary service rate in addition to the 
        board and lodging rate for facilities licensed and registered by 
        the Minnesota department of health under section 157.17 prior to 
        December 31, 1994 1996, if the facility meets the following 
        criteria: 
           (1) at least 75 percent of the residents have a primary 
        diagnosis of mental illness, chemical dependency, or both, and 
        have related special needs; 
           (2) the facility provides 24-hour, on-site, year-round 
        supportive services by qualified staff capable of intervention 
        in a crisis of persons with late-state inebriety or mental 
        illness who are vulnerable to abuse or neglect; 
           (3) the services at the facility include, but are not 
        limited to: 
           (i) secure central storage of medication; 
           (ii) reminders and monitoring of medication for 
        self-administration; 
           (iii) support for developing an individual medical and 
        social service plan, updating the plan, and monitoring 
        compliance with the plan; and 
           (iv) assistance with setting up meetings, appointments, and 
        transportation to access medical, chemical health, and mental 
        health service providers; 
           (4) each resident has a documented need for at least one of 
        the services provided; 
           (5) each resident has been offered an opportunity to apply 
        for admission to a licensed residential treatment program for 
        mental illness, chemical dependency, or both, have refused that 
        offer, and the offer and their refusal has been documented to 
        writing; and 
           (6) the residents are not eligible for home and 
        community-based services waivers because of their unique need 
        for community support. 
           The total supplementary service rate must not exceed $575. 
           Sec. 21.  [CORRECTION 303.] Laws 1997, chapter 200, article 
        1, section 5, subdivision 4, as amended by Laws 1997, First 
        Special Session chapter 5, section 22, is amended to read: 
        Subd. 4.  Workforce Preparation 
            16,922,000      9,079,000
                      Summary by Fund
        General              16,147,000     8,304,000
        Special Revenue         775,000       775,000
        $775,000 the first year and $775,000 
        the second year is for job training 
        programs under Minnesota Statutes, 
        sections 268.60 to 268.64.  
        Notwithstanding Minnesota Statutes, 
        section 268.022, this appropriation is 
        from the workforce investment fund.  Of 
        this amount, $250,000 each year is for 
        grants to the Ramsey county 
        opportunities industrialization 
        center.  The grants are to be used to 
        (1) offer prevocational training 
        programs and specific vocational 
        training programs involving intensive 
        English as a second language in 
        instruction, and (2) train for and 
        locate entry level jobs including, 
        without limitation, clerical, building 
        maintenance, manufacturing, home 
        maintenance and repair, and certified 
        nursing assistance.  
        $1,815,000 the first year and 
        $1,817,000 the second year is for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  
        $1,050,000 the first year and 
        $1,050,000 the second year is for youth 
        intervention programs under Minnesota 
        Statutes, section 268.30.  Funding from 
        this appropriation may be used to 
        expand existing programs to serve unmet 
        needs and to create new programs in 
        underserved areas.  This appropriation 
        is available until spent. 
        $1,500,000 the first year and 
        $1,500,000 the second year is to 
        supplement the activities of the Job 
        Training Partnership Act Title II-A 
        program as described in United States 
        Code, title 29, sections 1501 to 1792.  
        The commissioner may use up to five 
        percent of this amount of state 
        operations.  The balance of the amount 
        is for services to temporary assistance 
        for needy families (TANF) recipients.  
        This is a one-time appropriation and 
        may not be included in the budget base 
        for the biennium ending June 30, 2001. 
        $75,000 the first year is for the PLATO 
        education partnership pilot program.  
        If the commissioner favorably evaluates 
        the demonstration implementation of 
        PLATO in Fairmont and Owatonna, the 
        commissioner shall select two other 
        communities in which PLATO will be 
        implemented.  Of this amount, not more 
        than $10 is for the demonstration 
        implementations.  This appropriation is 
        available until June 30, 1999.  This is 
        a one-time appropriation and may not be 
        included in the agency's budget base 
        for the biennium ending June 30, 2001. 
        $250,000 the first year and $250,000 
        the second year is for the learn to 
        earn summer youth employment program 
        established under Laws 1995, chapter 
        224, sections 5 and 39.  This 
        appropriation is available until spent. 
        $10,000 the first year and $10,000 the 
        second year are for one-time grants to 
        independent school district No. 2752, 
        Fairmont, for community initiatives.  
        Of the money appropriated for the 
        summer youth program for the first 
        year, $750,000 is immediately 
        available.  Any remaining balance of 
        the immediately available money is 
        available for the year in which it is 
        appropriated.  In addition to the base 
        appropriation, $6,000,000 the first 
        year is for the summer youth program. 
        If the appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available. 
        $700,000 the first year and $700,000 
        the second year is for the Youthbuild 
        program under Minnesota Statutes, 
        sections 268.361 to 268.366.  A 
        Minnesota YOUTHBUILD program funded 
        under this section as authorized in 
        Minnesota Statutes, sections 268.361 to 
        268.367, qualifies as an approved 
        training program under Minnesota Rules, 
        part 5200.0930, subpart 1. 
        $250,000 the first year is for a 
        one-time grant to the displaced 
        homemaker program in the department of 
        economic security and $125,000 the 
        first year and $125,000 the second year 
        are for one-time grants to the St. Paul 
        district 5 planning council.  These 
        grants are to operate a community work 
        empowerment support group demonstration 
        project.  A project consists of 
        empowerment groups of individuals that 
        are in the process of obtaining or have 
        obtained jobs, including those in the 
        welfare-to-work programs, or are 
        working out problems of attaining 
        self-sufficiency.  The groups must 
        separately meet at least monthly for at 
        least two hours.  Each group meeting 
        must include empower mentors whose 
        responsibility will be to conduct the 
        meeting.  Group members must be paid at 
        least $20 for each meeting attended.  
        The sites will report to the 
        commissioner on a semiannual basis 
        regarding the progress achieved at the 
        meetings.  The purpose of the group is 
        to: 
        (1) share information among group 
        members as to the successes and 
        problems encountered in the 
        individual's employment goals; 
        (2) provide a forum for individuals 
        involved in moving to self-sufficiency 
        to share their experiences and 
        strategies and to support and empower 
        each other; and 
        (3) to provide feedback to the 
        commissioner concerning the best 
        strategies to achieve the empowerment 
        support group's objectives. 
        Notwithstanding Minnesota Statutes, 
        section 268.022, subdivision 2, the 
        commissioner of finance shall transfer 
        to the general fund from the dedicated 
        fund $3,500,000 in the first year and 
        $3,500,000 in the second year of the 
        money collected through the special 
        assessment established in Minnesota 
        Statutes, section 268.022, subdivision 
        1. 
        $15,000 the first year and $15,000 the 
        second year is for a grant to the city 
        of Champlin for creating and expanding 
        curfew enforcement.  The program must 
        have clearly established neighborhood, 
        community, and family measures of 
        success and must report to the 
        commissioner of economic security on 
        the achievement of these outcomes on or 
        before June 30, 1998. 
        $250,000 the first year is for a 
        one-time grant to Ramsey county to 
        expand the sister-to-sister mentoring, 
        support, and training network program 
        countywide.  This appropriation is in 
        addition to money appropriated under 
        Minnesota Statutes, sections 256J.62 
        and 256J.76.  This appropriation is 
        available until June 30, 1999. 
        $500,000 is for a grant to the center 
        for victims of torture to design and 
        develop training to educate health care 
        and human service workers on levels of 
        sensitive care and how to make 
        referrals and to establish a network of 
        care providers to do pro bono care for 
        torture survivors so as to enable a 
        rapid integration into communities and 
        labor markets by torture victims.  This 
        is a one-time appropriation requiring a 
        one-to-one nonstate, in-kind match, and 
        is available until expended. 
           Sec. 22.  [CORRECTION 304.] Minnesota Statutes 1997 
        Supplement, section 119B.05, subdivision 7, is amended to read: 
           Subd. 7.  [CHILD CARE ASSISTANCE DIVERSION.] A one-year 
        program is established to provide assistance to participants 
        under the working family assistance MFIP-S program established 
        in chapter 256J who are participating in an authorized activity 
        under section 256J.03, subdivision 4 256J.49, subdivision 5, or 
        256J.52, subdivision 5, and who are eligible for child care 
        assistance according to chapter 119B as a reimbursement for 
        expenses related to the costs of education, training, or 
        transportation when all of the following conditions exist: 
           (1) child care needs during participation in the authorized 
        activity are being met by a legal child care provider as defined 
        in section 119B.01, subdivision 13; 
           (2) the participant cannot reasonably arrange for the 
        education, training, or transportation costs to be met through 
        alternate arrangements; 
           (3) the child care arrangement provides a transition to a 
        stable child care and employment arrangement and does not 
        disrupt the continuity of care for children; and 
           (4) the arrangement does not exceed two months. 
           The commissioner shall select one county in the 
        seven-county metropolitan area to participate in the program.  
        Assistance must be available only to residents of the selected 
        county.  Assistance granted under this subdivision must not 
        exceed 1/12 of the average annual cost of care as established 
        for the administering county in the previous state fiscal year 
        for each authorized month.  Assistance under this subdivision is 
        available to a recipient on a one-time basis. 
           Sec. 23.  [CORRECTION 305.] Minnesota Statutes 1996, 
        section 297A.135, is amended to read: 
           297A.135 [RENTAL MOTOR VEHICLE TAX.] 
           Subdivision 1.  [TAX IMPOSED.] A tax is imposed on the 
        lease or rental in this state for not more than 28 days of a 
        passenger automobile as defined in section 168.011, subdivision 
        7, a van as defined in section 168.011, subdivision 28, or a 
        pickup truck as defined in section 168.011, subdivision 29.  A 
        van designed or adapted primarily for transporting property 
        rather than passengers is exempt from the tax imposed under this 
        section.  The tax is imposed at the rate of 6.2 percent of the 
        sales price as defined for the purpose of imposing the sales and 
        use tax in this chapter.  The tax does not apply to the lease or 
        rental of a hearse or limousine used in connection with a burial 
        or funeral service.  It applies whether or not the vehicle is 
        licensed in the state. 
           Subd. 1a.  [FEE IMPOSED.] A fee equal to three percent of 
        the sales price is imposed on leases or rentals of vehicles 
        subject to the tax under subdivision 1.  The lessor on the 
        invoice to the customer may designate the fee as "a fee imposed 
        by the State of Minnesota for the registration of rental cars." 
           Subd. 2.  [SALES AND USE TAX.] The tax imposed in 
        subdivision 1 is and the fee imposed in subdivision 1a are not 
        included in the sales price for purposes of determining the 
        sales and use tax imposed in this chapter or any sales and use 
        tax imposed on the transaction under a special law. 
           Subd. 3.  [ADMINISTRATION.] The tax imposed in subdivision 
        1 must be reported and paid to the commissioner of revenue with 
        the taxes imposed in this chapter.  It is The tax imposed in 
        subdivision 1 and the fee imposed in subdivision 1a are subject 
        to the same interest, penalty, and other provisions provided for 
        sales and use taxes under chapter 289A and this chapter.  The 
        commissioner has the same powers to assess and collect the 
        tax and fee that are given the commissioner in chapters 270 and 
        289A and this chapter to assess and collect sales and use tax. 
           Subd. 4.  [EXEMPTION.] The tax and the fee imposed by this 
        section does do not apply to a lease or rental if the of (1) a 
        vehicle is to be used by the lessee to provide a licensed taxi 
        service; (2) a hearse or limousine used in connection with a 
        burial or funeral service; or (3) a van designed or adapted 
        primarily for transporting property rather than passengers. 
           Subd. 5.  [PAYMENT OF EXCESS FEES.] On the first sales tax 
        return due following the end of a calendar year during which a 
        lessor has imposed a fee under subdivision 1a, the lessor shall 
        report to the commissioner of revenue, in the form required by 
        the commissioner, the amount of the fee collected and the amount 
        of motor vehicle registration taxes paid under chapter 168.  If 
        the amount of the fee collected during the previous year exceeds 
        the amount of motor vehicle registration taxes paid under 
        chapter 168 during the previous year, the lessor shall remit the 
        excess to the commissioner of revenue at the time the report is 
        submitted. 
           Sec. 24.  [CORRECTION 305A.] Minnesota Statutes 1997 
        Supplement, section 297A.44, subdivision 1, is amended to read: 
           Subdivision 1.  (a) Except as provided in paragraphs (b) 
        and (c) to (d), all revenues, including interest and penalties, 
        derived from the excise and use taxes imposed by sections 
        297A.01 to 297A.44 shall be deposited by the commissioner in the 
        state treasury and credited to the general fund.  
           (b) All excise and use taxes derived from sales and use of 
        property and services purchased for the construction and 
        operation of an agricultural resource project, from and after 
        the date on which a conditional commitment for a loan guaranty 
        for the project is made pursuant to section 41A.04, subdivision 
        3, shall be deposited in the Minnesota agricultural and economic 
        account in the special revenue fund.  The commissioner of 
        finance shall certify to the commissioner the date on which the 
        project received the conditional commitment.  The amount 
        deposited in the loan guaranty account shall be reduced by any 
        refunds and by the costs incurred by the department of revenue 
        to administer and enforce the assessment and collection of the 
        taxes.  
           (c) All revenues, including interest and penalties, derived 
        from the excise and use taxes imposed on sales and purchases 
        included in section 297A.01, subdivision 3, paragraphs (d) and 
        (k), clauses (1) and (2), must be deposited by the commissioner 
        in the state treasury, and credited as follows: 
           (1) first to the general obligation special tax bond debt 
        service account in each fiscal year the amount required by 
        section 16A.661, subdivision 3, paragraph (b); and 
           (2) after the requirements of clause (1) have been met, the 
        balance must be credited to the general fund. 
           (d) The revenues, including interest and penalties, 
        collected under section 297A.135, subdivision 5, shall be 
        deposited by the commissioner in the state treasury and credited 
        to the general fund.  By July 15 of each year the commissioner 
        shall transfer to the highway user tax distribution fund an 
        amount equal to the excess fees collected under section 
        297A.135, subdivision 5, for the previous calendar year. 
           Sec. 25.  [CORRECTION 305B.] [REPEALER.] 
           Minnesota Statutes 1997 Supplement, section 168.019, is 
        repealed. 
           Sec. 26.  [CORRECTION 305C.] [EFFECTIVE DATE.] 
           Sections 23 to 25 are effective for leases or rentals 
        occurring on or after August 1, 1997. 
           Sec. 27.  [CORRECTION 307.] Subdivision 1.  Minnesota 
        Statutes 1996, section 124.91, subdivision 7, is amended to read:
           Subd. 7.  [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon 
        application to, and approval by, the commissioner in accordance 
        with the procedures and limits in subdivision 1, paragraphs (a) 
        and (b), a district, as defined in this subdivision, may: 
           (1) purchase real or personal property under an installment 
        contract or may lease real or personal property with an option 
        to purchase under a lease purchase agreement, by which 
        installment contract or lease purchase agreement title is kept 
        by the seller or vendor or assigned to a third party as security 
        for the purchase price, including interest, if any; and 
           (2) annually levy the amounts necessary to pay the 
        district's obligations under the installment contract or lease 
        purchase agreement. 
           (b) The obligation created by the installment contract or 
        the lease purchase agreement must not be included in the 
        calculation of net debt for purposes of section 475.53, and does 
        not constitute debt under other law.  An election is not 
        required in connection with the execution of the installment 
        contract or the lease purchase agreement. 
           (c) The proceeds of the levy authorized by this subdivision 
        must not be used to acquire a facility to be primarily used for 
        athletic or school administration purposes. 
           (d) For the purposes of this subdivision, "district" means: 
           (1) a school district required to have a comprehensive plan 
        for the elimination of segregation whose plan has been 
        determined by the commissioner to be in compliance with the 
        state board of education rules relating to equality of 
        educational opportunity and school desegregation; or 
           (2) a school district that participates in a joint program 
        for interdistrict desegregation with a district defined in 
        clause (1) if the facility acquired under this subdivision is to 
        be primarily used for the joint program. 
           (e) Notwithstanding subdivision 1, the prohibition against 
        a levy by a district to lease or rent a district-owned building 
        to itself does not apply to levies otherwise authorized by this 
        subdivision. 
           (f) For the purposes of this subdivision, any references in 
        subdivision 1 to building or land shall include personal 
        property. 
           Subd. 2.  [EFFECTIVE DATE.] This section is effective 
        retroactively from July 1, 1997. 
           Sec. 28.  [CORRECTION 308.] Subdivision 1.  Minnesota 
        Statutes 1997 Supplement, section 273.13, subdivision 25, is 
        amended to read: 
           Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
        estate containing four or more units and used or held for use by 
        the owner or by the tenants or lessees of the owner as a 
        residence for rental periods of 30 days or more.  Class 4a also 
        includes hospitals licensed under sections 144.50 to 144.56, 
        other than hospitals exempt under section 272.02, and contiguous 
        property used for hospital purposes, without regard to whether 
        the property has been platted or subdivided.  Class 4a property 
        in a city with a population of 5,000 or less, that is (1) 
        located outside of the metropolitan area, as defined in section 
        473.121, subdivision 2, or outside any county contiguous to the 
        metropolitan area, and (2) whose city boundary is at least 15 
        miles from the boundary of any city with a population greater 
        than 5,000 has a class rate of 2.3 percent of market value.  All 
        other class 4a property has a class rate of 2.9 percent of 
        market value.  For purposes of this paragraph, population has 
        the same meaning given in section 477A.011, subdivision 3. 
           (b) Class 4b includes: 
           (1) residential real estate containing less than four units 
        that does not qualify as class 4bb, other than seasonal 
        residential, and recreational; 
           (2) manufactured homes not classified under any other 
        provision; 
           (3) a dwelling, garage, and surrounding one acre of 
        property on a nonhomestead farm classified under subdivision 23, 
        paragraph (b) containing two or three units; 
           (4) unimproved property that is classified residential as 
        determined under section 273.13, subdivision 33.  
           Class 4b property has a class rate of 2.1 percent of market 
        value.  
           (c) Class 4bb includes: 
           (1) nonhomestead residential real estate containing one 
        unit, other than seasonal residential, and recreational; and 
           (2) a single family dwelling, garage, and surrounding one 
        acre of property on a nonhomestead farm classified under 
        subdivision 23, paragraph (b). 
           Class 4bb has a class rate of 1.9 percent on the first 
        $75,000 of market value and a class rate of 2.1 percent of its 
        market value that exceeds $75,000. 
           Property that has been classified as seasonal recreational 
        residential property at any time during which it has been owned 
        by the current owner or spouse of the current owner does not 
        qualify for class 4bb. 
           (d) Class 4c property includes: 
           (1) except as provided in subdivision 22, paragraph (c), 
        real property devoted to temporary and seasonal residential 
        occupancy for recreation purposes, including real property 
        devoted to temporary and seasonal residential occupancy for 
        recreation purposes and not devoted to commercial purposes for 
        more than 250 days in the year preceding the year of 
        assessment.  For purposes of this clause, property is devoted to 
        a commercial purpose on a specific day if any portion of the 
        property is used for residential occupancy, and a fee is charged 
        for residential occupancy.  In order for a property to be 
        classified as class 4c, seasonal recreational residential for 
        commercial purposes, at least 40 percent of the annual gross 
        lodging receipts related to the property must be from business 
        conducted between Memorial Day weekend and Labor Day weekend and 
        at least 60 percent of all bookings by lodging guests during the 
        year must be for periods of at least two consecutive nights.  
        Class 4c also includes commercial use real property used 
        exclusively for recreational purposes in conjunction with class 
        4c property devoted to temporary and seasonal residential 
        occupancy for recreational purposes, up to a total of two acres, 
        provided the property is not devoted to commercial recreational 
        use for more than 250 days in the year preceding the year of 
        assessment and is located within two miles of the class 4c 
        property with which it is used.  Class 4c property classified in 
        this clause also includes the remainder of class 1c resorts.  
        Owners of real property devoted to temporary and seasonal 
        residential occupancy for recreation purposes and all or a 
        portion of which was devoted to commercial purposes for not more 
        than 250 days in the year preceding the year of assessment 
        desiring classification as class 1c or 4c, must submit a 
        declaration to the assessor designating the cabins or units 
        occupied for 250 days or less in the year preceding the year of 
        assessment by January 15 of the assessment year.  Those cabins 
        or units and a proportionate share of the land on which they are 
        located will be designated class 1c or 4c as otherwise 
        provided.  The remainder of the cabins or units and a 
        proportionate share of the land on which they are located will 
        be designated as class 3a.  The owner of property desiring 
        designation as class 1c or 4c property must provide guest 
        registers or other records demonstrating that the units for 
        which class 1c or 4c designation is sought were not occupied for 
        more than 250 days in the year preceding the assessment if so 
        requested.  The portion of a property operated as a (1) 
        restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
        facility operated on a commercial basis not directly related to 
        temporary and seasonal residential occupancy for recreation 
        purposes shall not qualify for class 1c or 4c; 
           (2) qualified property used as a golf course if: 
           (i) any portion of the property is located within a county 
        that has a population of less than 50,000, or within a county 
        containing a golf course owned by a municipality or, the county, 
        or a special taxing district; 
           (ii) it is open to the public on a daily fee basis.  It may 
        charge membership fees or dues, but a membership fee may not be 
        required in order to use the property for golfing, and its green 
        fees for golfing must be comparable to green fees typically 
        charged by municipal courses; and 
           (iii) it meets the requirements of section 273.112, 
        subdivision 3, paragraph (d). 
           A structure used as a clubhouse, restaurant, or place of 
        refreshment in conjunction with the golf course is classified as 
        class 3a property. 
           (3) real property up to a maximum of one acre of land owned 
        by a nonprofit community service oriented organization; provided 
        that the property is not used for a revenue-producing activity 
        for more than six days in the calendar year preceding the year 
        of assessment and the property is not used for residential 
        purposes on either a temporary or permanent basis.  For purposes 
        of this clause, a "nonprofit community service oriented 
        organization" means any corporation, society, association, 
        foundation, or institution organized and operated exclusively 
        for charitable, religious, fraternal, civic, or educational 
        purposes, and which is exempt from federal income taxation 
        pursuant to section 501(c)(3), (10), or (19) of the Internal 
        Revenue Code of 1986, as amended through December 31, 1990.  For 
        purposes of this clause, "revenue-producing activities" shall 
        include but not be limited to property or that portion of the 
        property that is used as an on-sale intoxicating liquor or 3.2 
        percent malt liquor establishment licensed under chapter 340A, a 
        restaurant open to the public, bowling alley, a retail store, 
        gambling conducted by organizations licensed under chapter 349, 
        an insurance business, or office or other space leased or rented 
        to a lessee who conducts a for-profit enterprise on the 
        premises.  Any portion of the property which is used for 
        revenue-producing activities for more than six days in the 
        calendar year preceding the year of assessment shall be assessed 
        as class 3a.  The use of the property for social events open 
        exclusively to members and their guests for periods of less than 
        24 hours, when an admission is not charged nor any revenues are 
        received by the organization shall not be considered a 
        revenue-producing activity; 
           (4) post-secondary student housing of not more than one 
        acre of land that is owned by a nonprofit corporation organized 
        under chapter 317A and is used exclusively by a student 
        cooperative, sorority, or fraternity for on-campus housing or 
        housing located within two miles of the border of a college 
        campus; and 
           (5) manufactured home parks as defined in section 327.14, 
        subdivision 3. 
           Class 4c property has a class rate of 2.1 percent of market 
        value, except that (i) for each parcel of seasonal residential 
        recreational property not used for commercial purposes the first 
        $75,000 of market value has a class rate of 1.4 percent, and the 
        market value that exceeds $75,000 has a class rate of 2.5 
        percent, and (ii) manufactured home parks assessed under clause 
        (5) have a class rate of two percent.  
           (e) Class 4d property is qualifying low-income rental 
        housing certified to the assessor by the housing finance agency 
        under sections 273.126 and 462A.071.  Class 4d includes land in 
        proportion to the total market value of the building that is 
        qualifying low-income rental housing.  For all properties 
        qualifying as class 4d, the market value determined by the 
        assessor must be based on the normal approach to value using 
        unrestricted rents. 
           Class 4d property has a class rate of one percent of market 
        value.  
           (f) Class 4e property consists of the residential portion 
        of any structure located within a city that was converted from 
        nonresidential use to residential use, provided that: 
           (1) the structure had formerly been used as a warehouse; 
           (2) the structure was originally constructed prior to 1940; 
           (3) the conversion was done after December 31, 1995, but 
        before January 1, 2003; and 
           (4) the conversion involved an investment of at least 
        $25,000 per residential unit. 
           Class 4e property has a class rate of 2.3 percent, provided 
        that a structure is eligible for class 4e classification only in 
        the 12 assessment years immediately following the conversion. 
           Subd. 2.  [EFFECTIVE DATE.] This section is effective for 
        taxes levied in 1997, payable in 1998, and thereafter. 
           Sec. 29.  [EFFECTIVE DATE.] 
           Unless provided otherwise, each section of this act takes 
        effect at the time that the provision of law enacted in 1997 
        that it amends, cites, or refers to takes effect. 
           Presented to the governor November 3, 1997 
           Signed by the governor November 5, 1997, 10:30 a.m.

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