MN Legislature

Accessibility menu

Session laws use visual text formatting such as stricken text to denote deleted language, and underlined text to denote new language. For users of the jaws screenreader it is recommended to configure jaws to use the proofreading scheme which will alter the pitch of the reading voice when reading stricken and underlined text. Instructions for configuring your jaws reader are provided by following this link.
If you can not or do not wish to configure your screen reader, deleted language will begin with the phrase "deleted text begin" and be followed by the phrase "deleted text end", new language will begin with the phrase "new text begin" and be followed by "new text end". Skip to text of Chapter 3.

Menu

Revisor of Statutes Menu

Authenticate

Pdf

1998 Minnesota Session Laws

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

                              CHAPTER 3-S.F.No. 8 
                  An act relating to legislative enactments; correcting 
                  miscellaneous noncontroversial oversights, 
                  inconsistencies, ambiguities, unintended results, and 
                  technical errors; amending 1998 H.F. No. 2874, article 
                  1, sections 44, subdivision 2; and 52; article 4, 
                  section 16; and article 5, section 54, subdivisions 4 
                  and 6; 1998 H.F. No. 3840, article 8, section 48; 
                  article 12, sections 7, subdivision 2; and 9, 
                  subdivision 4; article 15, section 22; 1998 H.F. No. 
                  3843, sections 2, subdivision 8; 5, subdivision 3; 7, 
                  subdivisions 9 and 33, 15, subdivision 5; 23, 
                  subdivision 4; and 25, subdivision 9; 1998 S.F. No. 
                  2407, section 31; 1998 S.F. No. 3346, article 1, 
                  section 2, subdivision 3; article 3, section 23; and 
                  article 6, section 119; Minnesota Statutes 1996, 
                  sections 124A.22, subdivision 14, as amended; and 
                  124A.29, subdivision 1, as amended; Minnesota Statutes 
                  1997 Supplement, sections 124A.28, subdivision 1a, as 
                  amended; 297A.25, subdivision 11, as amended; and 
                  626.556, subdivision 10f, as amended. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [CORRECTION 101.] 1998 H.F. No. 3840, article 
        15, section 22, if enacted, is amended to read: 
           Sec. 22.  [PROPERTY EXEMPT FROM TAXATION.] 
           Any properties, real or personal, owned, leased, 
        controlled, used, or occupied by the sanitary sewer board for 
        any purpose under this article are declared to be acquired, 
        owned, leased, controlled, used, and occupied for public, 
        governmental, and municipal purposes, and are exempt from 
        taxation by the state or any political subdivision of the state, 
        provided that such properties are subject to special assessments 
        levied by a political subdivision for a local improvement in 
        amounts proportionate to and not exceeding the special benefit 
        received by the properties from such improvement.  No possible 
        use of any such properties in any manner different from their 
        use as part of the disposal system at the time shall be 
        considered in determining the special benefit received by such 
        properties.  All such assessments shall be subject to final 
        approval by the board, whose determination of the benefits shall 
        be conclusive upon the political subdivision levying the 
        assessment.  All bonds, certificates of indebtedness, or other 
        obligations of the board, and the interest thereon, are exempt 
        from taxation by the state or any political subdivision of the 
        state. 
           Sec. 2.  [CORRECTION 101A.] Minnesota Statutes 1997 
        Supplement, section 297A.25, subdivision 11, as amended by 1998 
        H.F. No. 3840, article 8, section 10, if enacted, is amended to 
        read: 
           Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
        all sales, including sales in which title is retained by a 
        seller or a vendor or is assigned to a third party under an 
        installment sale or lease purchase agreement under section 
        465.71, of tangible personal property to, and all storage, use 
        or consumption of such property by, the United States and its 
        agencies and instrumentalities, the University of Minnesota, 
        state universities, community colleges, technical colleges, 
        state academies, the Lola and Rudy Perpich Minnesota center for 
        arts education, an instrumentality of a political subdivision 
        that is accredited as an optional/special function school by the 
        North Central Association of Colleges and Schools, school 
        districts, public libraries, public library systems, 
        multicounty, multitype library systems as defined in section 
        134.001, county law libraries under chapter 134A, the state 
        library under section 480.09, and the legislative reference 
        library are exempt. 
           As used in this subdivision, "school districts" means 
        public school entities and districts of every kind and nature 
        organized under the laws of the state of Minnesota, including, 
        without limitation, school districts, intermediate school 
        districts, education districts, service cooperatives, secondary 
        vocational cooperative centers, special education cooperatives, 
        joint purchasing cooperatives, telecommunication cooperatives, 
        regional management information centers, and any instrumentality 
        of a school district, as defined in section 471.59. 
           Sales exempted by this subdivision include sales under 
        section 297A.01, subdivision 3, paragraph (f).  
           Sales to hospitals and nursing homes owned and operated by 
        political subdivisions of the state are exempt under this 
        subdivision.  
           Sales of supplies and equipment used in the operation of an 
        ambulance service owned and operated by a political subdivision 
        of the state are exempt under this subdivision provided that the 
        supplies and equipment are used in the course of providing 
        medical care.  Sales to a political subdivision of repair and 
        replacement parts for emergency rescue vehicles and fire trucks 
        and apparatus are exempt under this subdivision.  
           Sales to a political subdivision of machinery and 
        equipment, except for motor vehicles, used directly for mixed 
        municipal solid waste management services at a solid waste 
        disposal facility as defined in section 115A.03, subdivision 10, 
        are exempt under this subdivision.  
           Sales to political subdivisions of chore and homemaking 
        services to be provided to elderly or disabled individuals are 
        exempt. 
           Sales to a town of gravel and of machinery, equipment, and 
        accessories, except motor vehicles, used exclusively for road 
        and bridge maintenance, and leases of motor vehicles exempt from 
        tax under section 297B.03, clause (10), are exempt. 
           Sales of telephone services to the department of 
        administration that are used to provide telecommunications 
        services through the intertechnologies revolving fund are exempt 
        under this subdivision. 
           This exemption shall not apply to building, construction or 
        reconstruction materials purchased by a contractor or a 
        subcontractor as a part of a lump-sum contract or similar type 
        of contract with a guaranteed maximum price covering both labor 
        and materials for use in the construction, alteration, or repair 
        of a building or facility.  This exemption does not apply to 
        construction materials purchased by tax exempt entities or their 
        contractors to be used in constructing buildings or facilities 
        which will not be used principally by the tax exempt entities. 
           This exemption does not apply to the leasing of a motor 
        vehicle as defined in section 297B.01, subdivision 5, except for 
        leases entered into by the United States or its agencies or 
        instrumentalities.  
           The tax imposed on sales to political subdivisions of the 
        state under this section applies to all political subdivisions 
        other than those explicitly exempted under this subdivision, 
        notwithstanding section 115A.69, subdivision 6, 116A.25, 
        360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
        469.127, 473.448, 473.545, or 473.608 or any other law to the 
        contrary enacted before 1992. 
           Sales exempted by this subdivision include sales made to 
        other states or political subdivisions of other states, if the 
        sale would be exempt from taxation if it occurred in that state, 
        but do not include sales under section 297A.01, subdivision 3, 
        paragraphs (c) and (e).  
           Sec. 3.  [CORRECTION 101B.] 1998 H.F. No. 3840, article 8, 
        section 48, if enacted, is amended to read: 
           Sec. 48.  [EFFECTIVE DATE.] 
           Sections 1, 3, 8, 9, 19, and 21 are effective for sales and 
        purchases made after June 30, 1998.  Sections 2 and 47 are 
        effective for sales made after June 30, 2000.  Sections 5, 13, 
        and 17 are effective for sales made after June 30, 1998.  
        Sections 6 and 7 are effective for rentals after June 30, 1998.  
        Section 10 is effective for purchases made after June 30, 1998.  
        Sections 8, 12, 14, 15, and 34 are effective the day following 
        final enactment.  Section 16 is effective for purchases made 
        after December 1, 1997.  Section 18 is effective for purchases 
        made after June 30, 1998, and before July 1, 2003.  Section 20 
        is effective for local laws enacted after June 30, 1998.  
        Sections 22 and 23 are effective July 1, 1998.  Section 24 is 
        effective December 31, 1997.  Sections 25 to 27 are effective 
        upon approval by the governing body of the city of Duluth and 
        compliance with Minnesota Statutes, section 645.021, subdivision 
        3.  Section 28 is effective upon approval by the governing body 
        of the city of Mankato and compliance with Minnesota Statutes, 
        section 645.021, subdivision 3.  Section 29 is effective upon 
        approval by the governing body of the city of Rochester and 
        compliance with Minnesota Statutes, section 645.021, subdivision 
        3.  Sections 30 to 32, 36, and 37 are effective the day after 
        the governing body of the city of St. Paul complies with 
        Minnesota Statutes, section 645.021.  Section 35 is effective 
        for transfers after November 30, 1997, and before January 1, 
        1999. 
           Sec. 4.  [CORRECTION 101C.] 1998 H.F. No. 3840, article 12, 
        section 7, subdivision 2, if enacted, is amended to read: 
           Subd. 2.  [BORDER CITY ZONE CREDIT.] (a) A corporation may 
        claim a credit against the tax imposed by sections 290.02, 
        290.0921, and 290.0922, subdivision 1, paragraph (a).  The 
        commissioner of revenue shall prescribe the method in which the 
        credit may be claimed.  This may include allowing the credit 
        only as a separately processed claim for refund. The allowable 
        credit is based on the tax liability attributable to business 
        conducted within a zone, and may be equal to all or a portion of 
        that liability, as determined by the city. 
           (b) "Tax liability" means the tax liability under sections 
        290.02, 290.0921, and 290.0922, subdivision 1, paragraph (a), 
        after any other credits. 
           (c) The tax liability attributable to business conducted 
        within a zone means the taxpayer's tax liability multiplied by a 
        fraction: 
           (1) the numerator of which is: 
           (i) the ratio of the taxpayer's property factor under 
        section 290.191 located in the border city development zone, for 
        the taxable year over the property factor denominator numerator 
        determined under section 290.191, plus 
           (ii) the ratio of the taxpayer's payroll factor under 
        section 290.191 located in the border city development zone, for 
        the taxable year over the payroll factor denominator numerator 
        determined under section 290.191; and 
           (2) the denominator of which is two. 
           (d) Any portion of the taxpayer's tax liability that is 
        attributable to illegal activity conducted in the zone must not 
        be used to calculate a credit under this subdivision. 
           (e) The credit allowed under this subdivision continues 
        through the taxable year in which the zone designation expires. 
           (f) To be eligible for a credit under this subdivision, the 
        taxpayer must file an annual return under chapter 290. 
           (g) The credit allowed under this subdivision may not 
        exceed the lesser of: 
           (1) the tax liability of the taxpayer for the taxable year; 
        or 
           (2) the amount of the tax credit certificates received by 
        the taxpayer from the city, less any tax credit certificates 
        used under section 469.1734, subdivisions 4, 5, and 6. 
           Sec. 5.  [CORRECTION 101D.] 1998 H.F. No. 3840, article 12, 
        section 9, subdivision 4, if enacted, is amended to read: 
           Subd. 4.  [INCOME TAX.] (a) Upon application by the 
        qualifying business to the city, and approval of the city, a 
        qualifying business shall receive a credit against taxes imposed 
        under chapter 290, other than the tax imposed under section 
        290.92, based on the taxable net income of the qualified 
        business attributable to the border city, but outside the border 
        city development zone, multiplied by 9.8 percent in the case of 
        a taxpayer under section 290.02, and 8.5 percent in the case of 
        a taxpayer taxable under section 290.06, subdivision 2c.  The 
        attributable net income of a qualified business in the border 
        city is determined by multiplying the taxable net income of the 
        business entity, determined as if the business were a C 
        corporation, by a fraction: 
           (1) the numerator of which is: 
           (i) the ratio of the taxpayer's property factor under 
        section 290.191 located in the border city, but outside of the 
        border city development zone, for the taxable year over the 
        property factor denominator numerator determined under section 
        290.191, plus 
           (ii) the ratio of the taxpayer's payroll factor under 
        section 290.191 located in the border city, but outside of the 
        border city development zone, for the taxable year over the 
        payroll factor denominator numerator determined under section 
        290.191; and 
           (2) the denominator of which is two. 
           (b) The credit under this subdivision applies after any 
        credit allowed under subdivision 5. 
           (c) After any notice period required by subdivision 7, the 
        city council must determine whether granting the credit is in 
        the best interest of the city, and if it so determines, must 
        approve the granting of the credit and determine its amount. 
           (d) The credit under this subdivision may not exceed the 
        amount of the tax credit certificates received by the taxpayer 
        from the city, less any tax credit certificates used under 
        section 469.1732, subdivision 2, and subdivisions 5 and 6. 
           (e) No taxpayer may receive the credit under this 
        subdivision for more than five taxable years. 
           Sec. 6.  [CORRECTION 102.] 1998 H.F. No. 3843, section 7, 
        subdivision 9, if enacted, is amended to read: 
        Subd. 9.  Flood Hazard
        Mitigation Grants                                    30,000,000
        For the flood hazard mitigation grant 
        program to local government units for 
        publicly owned capital improvements to 
        prevent or alleviate flood damages 
        under Minnesota Statutes, section 
        103F.161. 
        $1,500,000 is to construct ring dikes, 
        whether publicly or privately owned.  
        $500,000 is for a grant to Clay county 
        to remove houses in the Crestwood 
        addition in Kurtz township on the Red 
        River that are endangered by the 
        collapsing river bank.  This 
        appropriation need not be matched. 
        The commissioner shall determine other 
        project priorities as appropriate based 
        upon need.  
        As soon as the United States Army Corps 
        of Engineers section 205 flood control 
        study for the city of Breckenridge is 
        complete, the commissioner shall make a 
        recommendation to the legislature for 
        the funding necessary to complete flood 
        hazard mitigation efforts in the city. 
           Sec. 7.  [CORRECTION 103.] 1998 H.F. No. 3843, section 2, 
        subdivision 8, if enacted, is amended to read: 
        Subd. 8.  Duluth     
        (a) Library                                          22,300,000 
        To construct, furnish, and equip a new 
        library. 
        (b) Academic Space Renovation                           200,000 
        To design the renovation of vacated 
        academic and laboratory space on the 
        Duluth campus in Heller Hall, MW 
        Alworth Hall, Business and Economics, 
        and the existing library building. 
        (c) Glensheen Mansion                                   600,000
        For capital repair, reconstruction, or 
        replacement of the foundation and 
        heating, ventilating, and air 
        conditioning system of the Glensheen 
        Mansion, subject to the requirements of 
        Minnesota Statutes, section 16A.695. 
        This appropriation is from the general 
        fund. 
           Sec. 8.  [CORRECTION 103A.] 1998 H.F. No. 3843, section 5, 
        subdivision 3, if enacted, is amended to read: 
        Subd. 3.  Youth Enrichment                            5,000,000 
        (a) For grants to local government 
        units to design, furnish, equip, 
        renovate, replace, or construct parks 
        and recreation facilities and school 
        facilities to provide youth, with 
        preference for youth in grades 4 to 8, 
        with regular enrichment activities 
        during nonschool hours, including after 
        school, evenings, weekends, and school 
        vacation periods, and that will provide 
        equal access and programming for all 
        children.  The buildings or facilities 
        may be leased to nonprofit community 
        organizations, subject to Minnesota 
        Statutes, section 16A.695, for the same 
        purposes.  Enrichment programs include 
        academic enrichment, homework 
        assistance, computer and technology 
        use, arts and cultural activities, 
        clubs, school-to-work and workforce 
        development, athletic, and recreational 
        activities.  Grants must be used to 
        expand the number of children 
        participating in enrichment programs or 
        improve the quality or range of program 
        offerings.  The facilities must be 
        fully available for programming 
        sponsored by nonprofit and community 
        groups serving youth, or school, 
        county, or city programs, for maximum 
        hours after school, evenings, weekends, 
        summers, and other school vacation 
        periods.  Priority must be given to 
        proposals that demonstrate 
        collaborations among private, 
        nonprofit, and public agencies, 
        including regional entities dealing 
        with at-risk youth, and community and 
        parent organizations in arranging for 
        programming, staffing, transportation, 
        and equipment.  All proposals must 
        include an inventory of existing 
        facilities and an assessment of 
        programming needs in the community. 
        (b) $1,000,000 is for enrichment grants 
        within the city of Minneapolis.  
        (c) $2,000,000 is for enrichment grants 
        within the city of St. Paul.  
        (d) $1,000,000 is for enrichment grants 
        in metropolitan statistical areas 
        outside of the cities of Minneapolis 
        and St. Paul.  Priority must be given 
        to school attendance areas with high 
        concentrations of children eligible for 
        free or reduced school lunch and to 
        government units demonstrating a 
        commitment to collaborative youth 
        efforts. 
        (e) $1,000,000 is for enrichment grants 
        for areas outside of metropolitan 
        statistical areas and outside of the 
        cities of Minneapolis and St. Paul.  
        Priority must be given to school 
        attendance areas with high 
        concentrations of children eligible for 
        free or reduced school lunch and to 
        government units demonstrating a 
        commitment to collaborative youth 
        efforts. 
        (f) Each grant must be matched by one 
        dollar from nonstate sources for each 
        two dollars of state money.  In-kind 
        contributions of facilities may be used 
        for the local match.  The value of 
        in-kind contributions must be 
        determined by the commissioner of 
        finance. 
           Sec. 9.  [CORRECTION 103B.] 1998 H.F. No. 3843, section 7, 
        subdivision 33, if enacted, is amended to read: 
        Subd. 33.  Bald Eagle Center                              500,000
        To the commissioner of administration 
        for a grant to the city of Wabasha for 
        construction of the American bald eagle 
        center.  The city of Wabasha may enter 
        into a lease or management agreement 
        with a nonprofit corporation under 
        Minnesota Statutes, section 16A.695.  
        This appropriation is not available 
        until at least $1,000,000 has been 
        committed from nonstate sources. 
           Sec. 10.  [CORRECTION 103C.] 1998 H.F. No. 3843, section 
        15, subdivision 5, if enacted, is amended to read: 
        Subd. 5.  Tennis Facility                               800,000
        For a grant to the city of St. Paul to 
        design a tennis center to offer indoor 
        tennis facilities, subject to the 
        requirements of Minnesota Statutes, 
        section 16A.695.  The center may be 
        constructed only after endorsement by a 
        national governing body member of the 
        United States Olympic Committee.  
           Sec. 11.  [CORRECTION 103D.] 1998 H.F. No. 3843, section 
        23, subdivision 4, if enacted, is amended to read: 
        Subd. 4.  Phillips Neighborhood Job
        Creation, Green Institute                             1,500,000
        To the city of Minneapolis for a grant 
        to the Green Institute to design, 
        construct, furnish, and equip a 
        building to house the Phillips 
        Ecoenterprise Center in the Phillips 
        neighborhood in south Minneapolis to 
        create up to 200 jobs in businesses, 
        many of which specialize in energy 
        conservation, renewable energy, 
        environmental technology, recycling, 
        reuse, and related fields.  One-half of 
        the job openings must be targeted for 
        persons on public assistance or below 
        150 percent of the federal poverty 
        level.  This grant must be matched on a 
        one-to-one basis from nonstate sources 
        of debt and equity.  The city may enter 
        into a lease or management agreement 
        with the Green Institute subject to 
        Minnesota Statutes, section 16A.695. 
        This appropriation is from the general 
        fund. 
           Sec. 12.  [CORRECTION 103E.] 1998 H.F. No. 3843, section 
        25, subdivision 9, if enacted, is amended to read: 
        Subd. 9.  Treaty Site History
        Center                                                  400,000
        For a grant to the Nicollet county 
        historical society to design and 
        construct a new central exhibit at the 
        treaty site history center, subject to 
        the requirements of Minnesota Statutes, 
        section 16A.695.  This appropriation is 
        not available until an equal amount has 
        been committed from nonstate sources. 
        This appropriation is from the general 
        fund. 
           Sec. 13.  [CORRECTION 104.] 1998 S.F. No. 2407, section 31, 
        if enacted, is amended to read: 
           Sec. 31.  [APPROPRIATION.] 
           $302,700 is appropriated from the trunk highway fund for 
        fiscal year 1999 to the commissioner of public safety.  Of this 
        appropriation: 
           (1) $295,000 is for youth-oriented driver improvement 
        clinics and implementation of the graduated licensing system 
        under this act; and 
           (2) $7,700 is for implementation of section 16 17. 
           Sec. 14.  [CORRECTION 105.] 1998 S.F. No. 3346, article 1, 
        section 2, subdivision 3, if enacted, is amended to read: 
        Subd. 3.  Basic Health Care Grants
           (97,529,000)  (146,802,000)
                      Summary by Fund
        General             (94,591,000) (128,833,000)
        Health Care Access   (2,938,000)  (17,969,000)
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Minnesota Care Grants
        Health Care Access Fund
            (2,938,000)   (17,969,000)
        [SUBSIDIZED FAMILY HEALTH COVERAGE.] Of 
        this appropriation, $500,000 from the 
        health care access fund in fiscal year 
        1999 is to implement the 
        employer-subsidized health coverage 
        program described in article 5, section 
        45.  
        (b) MA Basic Health Care Grants-
        Families and Children
        General (32,047,000)  (65,249,000)
        [FETAL ALCOHOL SYNDROME MEDICAL 
        ASSISTANCE FEDERAL MATCH.] The 
        commissioner shall claim all available 
        federal match under Title XIX for the 
        fetal alcohol syndrome/fetal alcohol 
        effect initiatives.  Grants and 
        projects shall be developed which focus 
        treatment on community-based options 
        which consider the availability of 
        federal match. 
        (c) MA Basic Health Care Grants- 
        Elderly and  Disabled
        General (25,643,000)  (40,952,000)
        (d) General Assistance Medical Care
        General (36,901,000)  (22,632,000)
        [PRESCRIPTION DRUG BENEFIT.] (a) If, by 
        September 15, 1998, federal approval is 
        obtained to provide a prescription drug 
        benefit for qualified Medicare 
        beneficiaries at no less than 100 
        percent of the federal poverty 
        guidelines and service-limited Medicare 
        beneficiaries under Minnesota Statutes, 
        section 256B.057, subdivision 3a, at no 
        less than 120 percent of federal 
        poverty guidelines, the commissioner of 
        human services shall not implement the 
        senior citizen drug program under 
        Minnesota Statutes, section 256.955, 
        but shall implement a drug benefit in 
        accordance with the approved waiver.  
        Upon approval of this waiver, the total 
        appropriation for the senior citizen 
        drug program under Laws 1997, chapter 
        225, article 7, section 2, shall be 
        transferred to the medical assistance 
        account to fund the federally approved 
        coverage for eligible persons for 
        fiscal year 1999. 
        (b) The commissioner may seek approval 
        for a higher copayment for eligible 
        persons above 100 percent of the 
        federal poverty guidelines. 
        (c) The commissioner shall report by 
        October 15, 1998, to the chairs of the 
        health and human services policy and 
        fiscal committees of the house and 
        senate whether the waiver referred to 
        in paragraph (a) has been approved and 
        will be implemented or whether the 
        state senior citizen drug program will 
        be implemented. 
        (d) If the commissioner does not 
        receive federal waiver approval at or 
        above the level of eligibility defined 
        in paragraph (a), the commissioner 
        shall implement the program under 
        Minnesota Statutes, section 256.955. 
        [HEALTH CARE ACCESS FUND TRANSFERS TO 
        THE GENERAL FUND.] Notwithstanding Laws 
        1997, chapter 203, article 1, section 
        2, subdivision 5, the commissioner 
        shall transfer funds from the health 
        care access fund to the general fund to 
        offset the projected savings to general 
        assistance medical care (GAMC) that 
        would result from the transition of 
        GAMC parents and adults without 
        children to MinnesotaCare.  For fiscal 
        year 1998, the amount transferred from 
        the health care access fund to the 
        general fund shall be $13,700,000.  The 
        amount of transfer for fiscal year 1999 
        shall be $2,659,000. 
           Sec. 15.  [CORRECTION 105A.] 1998 S.F. No. 3346, article 3, 
        section 23, if enacted, is amended to read: 
           Sec. 23.  [RECOMMENDATIONS TO IMPLEMENT NEW REIMBURSEMENT 
        SYSTEM.] 
           (a) By January 15, 1999, the commissioner shall make 
        recommendations to the chairs of the health and human services 
        policy and fiscal committees on the repeal of specific statutes 
        and rules as well as any other additional recommendations 
        related to implementation of sections 11 and 12 14 and 16. 
           (b) In developing recommendations for nursing facility 
        reimbursement, the commissioner shall consider making each 
        nursing facility's total payment rates, both operating and 
        property rate components, prospective.  The commissioner shall 
        involve nursing facility industry and consumer representatives 
        in the development of these recommendations. 
           (c) In making recommendations for ICF/MR reimbursement, the 
        commissioner may consider methods of establishing payment rates 
        that take into account individual client costs and needs, 
        include provisions to establish links between performance 
        indicators and reimbursement and other performance incentives, 
        and allow local control over resources necessary for local 
        agencies to set rates and contract with ICF/MR facilities.  In 
        addition, the commissioner may establish methods that provide 
        information to consumers regarding service quality as measured 
        by performance indicators.  The commissioner shall involve 
        ICF/MR industry and consumer representatives in the development 
        of these recommendations. 
           Sec. 16.  [CORRECTION 105B.] 1998 S.F. No. 3346, article 6, 
        section 119, if enacted, is amended to read: 
           Sec. 119.  [EFFECTIVE DATES.] 
           (a) Sections 2, 3, 4, 7, 8, 19, 90, 95, and 102, and 112 
        are effective the day following final enactment. 
           (b) Section 9 is effective June 1, 1998. 
           (c) Section 10 is effective October 1, 1998. 
           (d) Section 50 is effective for all applications for MFIP-S 
        made on or after July 1, 1998. 
           (e) Section 12 is effective March 30, 1998. 
           (f) Section 51 is effective for MFIP-S applications 
        received on or after January 1, 1999, and for all MFIP-S 
        recertifications occurring on or after January 1, 1999. 
           Sec. 17.  [CORRECTION 106.] Minnesota Statutes 1996, 
        section 124A.22, subdivision 14, as amended by 1998 S.F. No. 
        2082, article 12, section 5, and 1998 H F. No. 2874, article 1, 
        section 31, if enacted, is amended to read: 
           Subd. 14.  [GRADUATION STANDARDS IMPLEMENTATION REVENUE.] 
        (a) A school district's graduation standards implementation 
        revenue is equal to $52 times its actual pupil units for fiscal 
        year 1999 plus $14 times its actual pupil units for fiscal year 
        1999 if the district implements the graduation rule under 
        section 121.1114, paragraph (b), and $43 per pupil unit for all 
        districts for fiscal year 2000 and later.  Graduation standards 
        implementation revenue is reserved and must be used according to 
        paragraphs (b) and (c). 
           (b) For fiscal year 1999, revenue must be reserved for 
        programs according to clauses (1) to (3). 
           (1) At least $20 per actual pupil unit plus $14 per actual 
        pupil unit for a district that implements the graduation rule 
        under section 121.1114, paragraph (b), must be allocated to 
        school sites in proportion to the number of students enrolled at 
        each school site weighted according to section 124.17, 
        subdivision 1, and is reserved for programs designed to enhance 
        the implementation of the graduation rule through intensive 
        staff development and decentralized decision making. 
           (2) At least $5 per actual pupil unit is reserved for 
        gifted and talented programs that are integrated with the 
        graduation rule.  This aid must supplement, not supplant, money 
        spent on gifted and talented programs authorized under Laws 
        1997, First Special Session chapter 4, article 5, section 24. 
           (3) Remaining aid under this paragraph must be used: 
           (i) for technology purposes including wiring, network 
        connections, and other technology-related infrastructure 
        improvements; purchase or lease of computer software and 
        hardware to be used in classrooms and for instructional 
        purposes; purchase or lease of interactive television network 
        equipment and network support; purchase or lease of computer 
        software and hardware designed to support special needs 
        programming and limited English proficiency programming; network 
        and technical support; and purchase of textbooks and other 
        instructional materials; or 
           (ii) to reduce class size. 
           (c) For fiscal year 2000 and later, revenue must be 
        allocated to school sites in proportion to the number of 
        students enrolled at each school site weighted according to 
        section 124.17, subdivision 1, and reserved for programs 
        designed to enhance the implementation of the graduation rule 
        through:  (1) staff development programs; (2) technology 
        purposes under paragraph (b), clause (3); (3) gifted and 
        talented programs; or (4) class size reduction programs based at 
        the school site. 
           (d) To the extent possible, school districts shall make 
        opportunities for graduation standards implementation available 
        to teachers employed by intermediate school districts.  If the 
        commissioner determines that the supplemental appropriation made 
        for this subdivision under section 40, subdivision 2, is in 
        excess of the amount needed for this subdivision, the 
        commissioner shall make equal payments of one-third of the 
        excess to each intermediate school district for the purpose of 
        paragraph (a). 
           (e) A district that qualifies for the referendum allowance 
        reduction under section 124A.03, subdivision 3c, and whose 
        authority referendum allowance under section 124A.03, 
        subdivision 1b, as adjusted under section 124A.03, subdivisions 
        1c and 3c, does not exceed the referendum allowance limit under 
        section 124A.03, subdivision 1c, clause (2), shall receive a 
        graduation standards implementation equity adjustment.  In 
        fiscal year 1999, the equity adjustment aid is equal to $34 per 
        actual pupil unit.  In fiscal year 2000 and thereafter, the 
        equity adjustment is equal to $25 per actual pupil unit. 
           Sec. 18.  [CORRECTION 106A.] Minnesota Statutes 1997 
        Supplement, section 124A.28, subdivision 1a, as amended by 1998 
        H.F. No. 2874, article 1, section 35, if enacted, is amended to 
        read: 
           Subd. 1a.  [BUILDING ALLOCATION.] (a) For fiscal years 1999 
        and 2000, upon approval by the commissioner, A district must 
        allocate at least the difference between its compensatory 
        revenue for that year and 95 percent of the amount of 
        compensatory revenue that the district would have received under 
        section 124A.22, subdivision 3, for fiscal year 1998 computed 
        using a basic formula allowance of $3,281 to each school 
        building in the district where the children who have generated 
        the revenue are served. 
           (b) Notwithstanding paragraph (a), for fiscal years 1999 
        and 2000, upon approval by the commissioner, a district may 
        allocate compensatory revenue not otherwise allocated under 
        paragraph (a) up to five percent of the amount of compensatory 
        revenue that the district would have received under section 
        124A.22, subdivision 3, for fiscal year 1998 to school sites 
        accordingly according to a plan adopted by the school board. 
           (c) For the purposes of this section and section 124.17, 
        subdivision 1d, "building" means education site as defined in 
        section 123.951, subdivision 1. 
           (d) If the pupil is served at a site other than one owned 
        and operated by the district, the revenue shall be paid to the 
        district and used for services for pupils who generate the 
        revenue. 
           Sec. 19.  [CORRECTION 106B.] Minnesota Statutes 1996, 
        section 124A.29, subdivision 1, as amended by 1998 H.F. No. 
        2874, article 1, section 36, if enacted, is amended to read: 
           Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
        required to reserve an amount equal to at least one percent of 
        the basic formula allowance revenue under section 124A.22, 
        subdivision 2, for in-service education for programs under 
        section 126.77, subdivision 2, for staff development plans, 
        including plans for challenging instructional activities and 
        experiences under section 126.70, and for curriculum development 
        and programs, other in-service education, teachers' workshops, 
        teacher conferences, the cost of substitute teachers staff 
        development purposes, and other related costs for staff 
        development efforts.  Districts may expend an additional amount 
        of basic revenue for staff development based on their needs.  
        The school board shall initially allocate 50 percent of the 
        revenue to each school site in the district on a per teacher 
        basis, which shall be retained by the school site until used.  
        The board may retain 25 percent to be used for district wide 
        staff development efforts.  The remaining 25 percent of the 
        revenue shall be used to make grants to school sites that 
        demonstrate exemplary use of allocated staff development 
        revenue.  A grant may be used for any purpose authorized under 
        section 126.70, 126.77, subdivision 2, or for the costs of 
        curriculum development and programs, other in-service education, 
        teachers' workshops, teacher conferences, substitute teachers 
        for staff development purposes, and other staff development 
        efforts, and determined by the site decision-making team.  The 
        site decision-making team must demonstrate to the school board 
        the extent to which staff at the site have met the outcomes of 
        the program.  The board may withhold a portion of initial 
        allocation of revenue if the staff development outcomes are not 
        being met. 
           Sec. 20.  [CORRECTION 106C.] 1998 H.F. No. 2874, article 1, 
        section 44, subdivision 2, if enacted, is amended to read: 
           Subd. 2.  [GROWTH FACTOR.] A school district's growth 
        factor equals the ratio of: 
           (1) its fiscal year 1999 compensatory revenue per actual 
        pupil unit for that year less the amount of compensatory revenue 
        divided by the district's actual pupil units for fiscal year 
        1998 that the district would have received under Minnesota 
        Statutes 1996, section 124A.22, subdivision 3, for fiscal year 
        1998 computed using a basic formula allowance of $3,281; to 
           (2) the amount of compensatory revenue divided by the 
        district's actual pupil units for fiscal year 1998 that the 
        district would have received under Minnesota Statutes 1996, 
        section 124A.22, subdivision 3, for fiscal year 1998 computed 
        using a basic formula allowance of $3,281. 
           Sec. 21.  [CORRECTION 106D.] 1998 H.F. No. 2874, article 1, 
        section 52, if enacted, is amended to read: 
           Sec. 52.  [EFFECTIVE DATES.] 
           (a) Sections 1, 2, 15, 16, 17, 37, 38, and 40 are effective 
        July 1, 1998. 
           (b) Sections 4, 5, 8, 9, 12, 13, 25, 41, 42, and 43 are 
        effective for revenue for fiscal year 1998. 
           (c) Section 7 is effective retroactively to July 1, 1997, 
        for revenue for fiscal year 1999. 
           (d) Sections 10, 11, 26, 27, 28, 31, 34, and 35 are 
        effective for revenue for fiscal year 1999. 
           (e) Section Sections 3 and 14 is are effective July 1, 
        1999. 
           (f) Section 18 is effective for revenue for fiscal year 
        2000. 
           (g) Section 21 is effective retroactive for revenue for 
        fiscal year 1997. 
           (h) Sections 24, 33, and 46 are effective the day following 
        final enactment. 
           (i) Section 32 is effective for revenue for fiscal year 
        2001. 
           Sec. 22.  [CORRECTION 106E.] 1998 H.F. No. 2874, article 4, 
        section 16, if enacted, is amended to read: 
           Sec. 16.  [TAX LEVY FOR DEBT SERVICE.] 
           To pay the principal of and interest on bonds issued under 
        section 13 15, independent school district No. 625, St. Paul, 
        must levy a tax annually in an amount sufficient under Minnesota 
        Statutes, section 475.61, subdivisions 1 and 3, to pay the 
        principal of and interest on the bonds.  The tax authorized 
        under this section is in addition to the taxes authorized to be 
        levied under Minnesota Statutes, chapter 124A or 275, or other 
        law. 
           Sec. 23.  [CORRECTION 106F.] 1998 H.F. No. 2874, article 5, 
        section 54, subdivision 4, if enacted, is amended to read: 
           Subd. 4.  [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] For a 
        grant to special school district No. 1, Minneapolis, and the 
        Minneapolis park and recreation board to establish a youth 
        athletic demonstration program under section 26 45: 
             $  100,000     .....     1999 
           Sec. 24.  [CORRECTION 106G.] 1998 H.F. No. 2874, article 5, 
        section 54, subdivision 6, if enacted, is amended to read: 
           Subd. 6.  [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] 
        For a clearinghouse of best educational practices according to 
        section 19 42: 
            $2,000,000     .....     1999
           Of this amount, $500,000 is for a contract with an 
        institution of higher education for the purposes of Minnesota 
        Statutes, section 121.1115, subdivisions subdivision 1b and 1c. 
           Sec. 25.  [CORRECTION 107.] Minnesota Statutes 1997 
        Supplement, section 626.556, subdivision 10f, as amended by Laws 
        1997, Third Special Session chapter 3, section 10, 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 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. 26.  [EFFECTIVE DATE.] 
           Unless provided otherwise, each section of this act takes 
        effect at the time the provision being corrected takes effect. 
           Presented to the governor April 22, 1998 
           Signed by the governor April 22, 1998, 10:00 p.m.

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