1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for the general 
  1.4             legislative and administrative expenses of state 
  1.5             government; providing for the transfer of certain 
  1.6             money in the state treasury; transferring certain 
  1.7             duties and functions; amending Minnesota Statutes 
  1.8             1994, sections 240.155, subdivision 1; 240.24, 
  1.9             subdivision 3; 297A.25, subdivision 11; 352.91, 
  1.10            subdivision 4; 353.65, subdivisions 2 and 3; 354.07, 
  1.11            subdivision 1; 354.42, subdivisions 2, 3, 5, and by 
  1.12            adding a subdivision; and 356.865, subdivision 3; 
  1.13            proposing coding for new law in Minnesota Statutes, 
  1.14            chapter 43A; repealing Minnesota Statutes 1994, 
  1.15            section 353.65, subdivision 3a. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  1.18     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.19  appropriated from the general fund, or another named fund, to 
  1.20  the agencies and for the purposes specified in this act, to be 
  1.21  available for the fiscal years indicated for each purpose.  The 
  1.22  figures "1996" and "1997," where used in this act, mean that the 
  1.23  appropriation or appropriations listed under them are available 
  1.24  for the year ending June 30, 1996, or June 30, 1997, 
  1.25  respectively. 
  1.26                          SUMMARY BY FUND 
  1.27                                                       BIENNIAL
  1.28                            1996          1997           TOTAL
  1.29  General            $  270,165,000 $  264,718,000 $  534,883,000
  1.30  Highway User            1,682,000      1,687,000      3,369,000
  2.1   State Government 
  2.2   Special Revenue         8,303,000      8,305,000     16,608,000 
  2.3   Trunk Highway              32,000         32,000         64,000 
  2.4   Workers' Compensation   4,046,000      3,926,000      7,972,000 
  2.5   Health Care Access      1,550,000      1,556,000      3,106,000 
  2.6   Landfill Cleanup           75,000         75,000        150,000 
  2.7   TOTAL              $  285,853,000 $  280,299,000 $  566,152,000 
  2.8                                              APPROPRIATIONS 
  2.9                                          Available for the Year 
  2.10                                             Ending June 30 
  2.11                                            1996         1997 
  2.12  Sec. 2.  LEGISLATURE 
  2.13  Subdivision 1.  Total  
  2.14  Appropriation                       $ 49,157,000   $ 49,157,000
  2.15                Summary by Fund
  2.16  General              48,950,000    48,950,000
  2.17  Trunk Highway            32,000        32,000
  2.18  Health Care Access      175,000       175,000
  2.19  The amounts that may be spent from this 
  2.20  appropriation for each program are 
  2.21  specified in the following subdivisions.
  2.22  Subd. 2.  Senate 
  2.23      15,822,000     15,822,000
  2.24  Subd. 3.  House of Representatives
  2.25      21,926,000     21,926,000
  2.26  Subd. 4.  Legislative 
  2.27  Coordinating Commission 
  2.28       7,241,000      7,241,000
  2.29                Summary by Fund
  2.30  General               7,034,000     7,034,000
  2.31  Health Care Access      175,000       175,000
  2.32  Trunk Highway            32,000        32,000
  2.33  (a) Legislative Reference Library 
  2.34         856,000        856,000
  2.35  (b) Revisor of Statutes 
  2.36       4,131,000      4,131,000
  2.37  (c) Great Lakes Commission   
  2.38          40,000         40,000
  2.39  (d) Legislative Commission on the 
  2.40  Economic Status of Women 
  3.1          176,000        176,000
  3.2   (e) Legislative Commission on 
  3.3   Employee Relations 
  3.4          105,000        105,000
  3.5   (f) Legislative Commission 
  3.6   on Pensions and Retirement 
  3.7          505,000        505,000
  3.8   (g) Legislative Commission on 
  3.9   Planning and Fiscal Policy 
  3.10          55,000         55,000
  3.11  (h) Legislative Commission to    
  3.12  Review Administrative Rules 
  3.13         134,000        134,000
  3.14  (i) Legislative Commission on    
  3.15  Waste Management 
  3.16         176,000        176,000
  3.17  (j) Legislative Water Commission 
  3.18          97,000         97,000
  3.19  (k) Mississippi River Parkway 
  3.20  Commission 
  3.21          32,000         32,000
  3.22  This appropriation is funded from the 
  3.23  trunk highway fund. 
  3.24  (l) Legislative Coordinating 
  3.25  Commission - General Support 
  3.26         979,000        979,000
  3.27  $87,000 each year is for contingency 
  3.28  expenses. 
  3.29  Subd. 5.  Legislative Audit 
  3.30  Commission 
  3.31       4,168,000      4,168,000
  3.32  The amounts that may be spent from this 
  3.33  appropriation for each activity are as 
  3.34  follows:  
  3.35  (a) Legislative Audit Commission 
  3.36          15,000         15,000
  3.37  (b) Legislative Auditor 
  3.38       4,153,000      4,153,000
  3.39  $115,000 the first year and $115,000 
  3.40  the second year are for review of 
  3.41  agency performance reports. 
  3.42  Sec. 3.  LEGISLATIVE RENT              4,850,000      4,882,000
  3.43  Sec. 4.  GOVERNOR'S OFFICE             3,507,000      3,504,000
  4.1   This appropriation is to fund the 
  4.2   offices of the governor and lieutenant 
  4.3   governor.  
  4.4   $19,000 the first year and $19,000 the 
  4.5   second year are for necessary expenses 
  4.6   in the normal performance of the 
  4.7   governor's and lieutenant governor's 
  4.8   duties for which no other reimbursement 
  4.9   is provided. 
  4.10  $97,000 the first year and $97,000 the 
  4.11  second year are for membership dues of 
  4.12  the National Governors Association.  
  4.13  $20,000 the first year and $20,000 the 
  4.14  second year are for the Council of 
  4.15  Great Lakes Governors. 
  4.16  During the biennium any seminars or 
  4.17  training sessions regarding federal 
  4.18  issues for federal budgeting that are 
  4.19  conducted by the Washington office 
  4.20  shall be made available to legislators 
  4.21  and legislative staff.  The Washington 
  4.22  office shall notify the majority leader 
  4.23  and the minority leader of the senate 
  4.24  and the speaker and the minority leader 
  4.25  of the house of representatives 
  4.26  regarding the timing of the seminars. 
  4.27  Sec. 5.  SECRETARY OF STATE
  4.28  Subdivision 1.  Total
  4.29  Appropriation                          8,262,000      5,240,000
  4.30  The amounts that may be spent from this 
  4.31  appropriation for each activity are 
  4.32  specified in the following subdivisions.
  4.33  Subd. 2.  Administration
  4.34         801,000        802,000 
  4.35  Subd. 3.  Operations
  4.36       3,913,000      3,915,000 
  4.37  Subd. 4.  Election Administration
  4.38       3,548,000        523,000 
  4.39  $3,118,000 the first year is for the 
  4.40  presidential primary. 
  4.41  Sec. 6.  STATE AUDITOR                 7,136,000      7,144,000
  4.42  $78,000 the first year and $78,000 the 
  4.43  second year are for an account the 
  4.44  auditor may bill for costs associated 
  4.45  with conducting single audits of 
  4.46  federal funds.  During the biennium, 
  4.47  this account may be used only when no 
  4.48  other billing mechanism is feasible. 
  4.49  Sec. 7.  STATE TREASURER               2,477,000      2,478,000
  4.50  $1,600,000 each year is for the 
  4.51  treasurer to pay for banking services 
  4.52  by fees rather than by compensating 
  4.53  balances. 
  5.1   Sec. 8.  ATTORNEY GENERAL 
  5.2   Subdivision 1.  Total  
  5.3   Appropriation                         21,792,000     21,883,000
  5.4                 Summary by Fund
  5.5   General              20,089,000    20,178,000
  5.6   Landfill Cleanup         75,000        75,000
  5.7   State Government
  5.8   Special Revenue       1,628,000     1,630,000
  5.9   The amounts that may be spent from this 
  5.10  appropriation for each program are 
  5.11  specified in the following subdivisions.
  5.12  Subd. 2.  Government Services 
  5.13       4,358,000      4,371,000
  5.14                Summary by Fund
  5.15  General               2,730,000     2,741,000
  5.16  State Government
  5.17  Special Revenue       1,628,000     1,630,000
  5.18  Subd. 3.  Public and 
  5.19  Human Resources
  5.20       3,316,000      3,335,000
  5.21                Summary by Fund
  5.22  General               3,241,000     3,260,000
  5.23  Landfill Cleanup         75,000        75,000
  5.24  Subd. 4.  Law Enforcement 
  5.25       3,944,000      3,963,000
  5.26  Subd. 5.  Legal Policy and 
  5.27  Administration 
  5.28       3,260,000      3,260,000
  5.29  Subd. 6.  Business Regulation 
  5.30       3,509,000      3,528,000
  5.31  Subd. 7.  Solicitor General  
  5.32       3,405,000      3,426,000
  5.33  Sec. 9.  ETHICAL PRACTICES BOARD          441,000        446,000
  5.34  Sec. 10.  INVESTMENT BOARD              2,052,000      2,053,000
  5.35  Sec. 11.  ADMINISTRATIVE HEARINGS       3,946,000      3,826,000
  5.36  This appropriation is from the workers' 
  5.37  compensation special compensation fund 
  5.38  for considering workers' compensation 
  5.39  claims. 
  5.40  $100,000 each year is for an internship 
  5.41  program in which students at Minnesota 
  5.42  law schools will serve as law clerks 
  6.1   for judges in the workers' compensation 
  6.2   division. 
  6.3   $180,000 each year is for additional 
  6.4   clerical support for workers' 
  6.5   compensation judges. 
  6.6   $125,000 the first year is for a mapper 
  6.7   board calendaring system. 
  6.8   Sec. 12.  OFFICE OF STRATEGIC AND
  6.9   LONG-RANGE PLANNING                     4,579,000     4,025,000
  6.10  $500,000 the first year is for 
  6.11  children's services information 
  6.12  management redesign. 
  6.13  $1,026,000 the first year and 
  6.14  $1,027,000 the second year are for the 
  6.15  land management information center. 
  6.16  $86,000 the first year and $61,000 the 
  6.17  second year are for the environmental 
  6.18  review process. 
  6.19  Sec. 13.  ADMINISTRATION 
  6.20  Subdivision 1.  Total 
  6.21  Appropriation                         24,443,000     24,429,000
  6.22                Summary by Fund
  6.23  General              18,018,000    18,004,000
  6.24  State Government 
  6.25  Special Revenue       6,425,000     6,425,000 
  6.26  The amounts that may be spent from this 
  6.27  appropriation for each program are 
  6.28  specified in the following subdivisions.
  6.29  Subd. 2.  Operations Management 
  6.30       3,408,000      3,373,000
  6.31  Subd. 3.  Intertechnologies Group
  6.32       9,928,000      9,928,000
  6.33                Summary by Fund
  6.34  General               3,503,000     3,503,000
  6.35  State Government
  6.36  Special Revenue       6,425,000     6,425,000
  6.37  The appropriation from the state 
  6.38  government special revenue fund each 
  6.39  year of $6,425,000 is for recurring 
  6.40  costs of 911 emergency telephone 
  6.41  service.  
  6.42  $2,250,000 the first year and 
  6.43  $2,250,000 the second year are for the 
  6.44  telecommunication infrastructure. 
  6.45  Notwithstanding any other law to the 
  6.46  contrary, the commissioner of 
  6.47  administration may, with the approval 
  6.48  of the commissioner of finance, make 
  6.49  loans from an internal service or 
  7.1   enterprise fund to another internal 
  7.2   service or enterprise fund. 
  7.3   Subd. 4.  Facilities Management 
  7.4        5,266,000      5,280,000
  7.5   Subd. 5.  Administrative Management 
  7.6        2,149,000      2,154,000
  7.7   A biennial appropriation of $124,000 to 
  7.8   the commissioner of administration 
  7.9   shall be used for processing and 
  7.10  oversight of grants in the oil 
  7.11  overcharge program.  This appropriation 
  7.12  is from oil overcharge money, as 
  7.13  defined in Minnesota Statutes, section 
  7.14  4.071, in the special revenue fund. 
  7.15  $2,000 the first year and $2,000 the 
  7.16  second year are for the state 
  7.17  employees' band. 
  7.18  Subd. 6.  Information Policy Office
  7.19       3,127,000      3,128,000
  7.20  $1,125,000 the first year and 
  7.21  $1,125,000 the second year are for 
  7.22  electronic commerce services. 
  7.23  Subd. 7.  Management Analysis
  7.24         565,000        566,000
  7.25  Sec. 14.  INTERGOVERNMENTAL 
  7.26  INFORMATION SYSTEMS ADVISORY COUNCIL     186,000        187,000
  7.27  The amounts must be subtracted from the 
  7.28  amount that would otherwise be payable 
  7.29  to local government aid under Minnesota 
  7.30  Statutes, chapter 477A, in order to 
  7.31  fund the intergovernmental information 
  7.32  systems advisory council. 
  7.33  The appropriation for a local 
  7.34  government financial reporting system, 
  7.35  pursuant to Laws 1994, chapter 587, 
  7.36  article 3, section 3, clause (5), is 
  7.37  available until expended. 
  7.38  Sec. 15.  PUBLIC BROADCASTING
  7.39  Subdivision 1.  Total
  7.40  Appropriation                          2,541,000      2,541,000
  7.41  The amounts that may be spent from this 
  7.42  appropriation for each program are 
  7.43  specified in the following subdivisions.
  7.44  Subd. 2.  Public Television  
  7.45       1,872,000      1,872,000 
  7.46  Subd. 3.  Public Radio
  7.47         644,000        644,000 
  7.48  Subd. 4.  Twin City Regional Cable
  8.1           25,000         25,000 
  8.2   Sec. 16.  CAPITOL AREA ARCHITECTURAL 
  8.3   AND PLANNING BOARD                       258,000        262,000
  8.4   Sec. 17.  FINANCE 
  8.5   Subdivision 1.  Total 
  8.6   Appropriation                         20,853,000     21,176,000
  8.7   The amounts that may be spent from this 
  8.8   appropriation for each program are 
  8.9   specified in the following subdivisions.
  8.10  Subd. 2.  Accounting Services  
  8.11       3,986,000      4,003,000
  8.12  Subd. 3.  Accounts Receivable
  8.13  Operations
  8.14       4,152,000      3,552,000
  8.15  $600,000 the first year is for 
  8.16  modification and enhancement of the 
  8.17  accounts receivable system. 
  8.18  The commissioner of finance may 
  8.19  transfer money, as deemed necessary, to 
  8.20  other state agencies participating in 
  8.21  the accounts receivable project. 
  8.22  Subd. 4.  Budget Services
  8.23       1,921,000      2,026,000
  8.24  Subd. 5.  Economic Analysis  
  8.25         299,000        308,000 
  8.26  Subd. 6.  Information Services
  8.27       8,920,000      9,643,000 
  8.28  Subd. 7.  Management Services
  8.29       1,575,000      1,644,000 
  8.30  The commissioner of finance, in 
  8.31  conjunction with the commissioner of 
  8.32  employee relations may transfer dollars 
  8.33  from unallocated balances in the 
  8.34  following funds to individual agencies 
  8.35  to cover the costs of collective 
  8.36  bargaining agreements:  state 
  8.37  government special revenue, health care 
  8.38  access, trunk highway, highway user, 
  8.39  state airport, environmental trust, 
  8.40  future resources, petroleum tank 
  8.41  release cleanup, workers' compensation 
  8.42  special, environmental, metropolitan 
  8.43  landfill contingency action trust, 
  8.44  landfill cleanup, and special revenue. 
  8.45  The commissioner of finance shall 
  8.46  report to the chair of the ways and 
  8.47  means committee of the house of 
  8.48  representatives and the chair of the 
  8.49  finance committee of the senate, by 
  8.50  December 31, 1995, on the transfers 
  8.51  made under these provisions. 
  9.1   Sec. 18.  TORT CLAIMS                    300,000        300,000
  9.2   To be spent by the commissioner of 
  9.3   finance.  
  9.4   If the appropriation for either year is 
  9.5   insufficient, the appropriation for the 
  9.6   other year is available for it.  
  9.7   Sec. 19.  GENERAL CONTINGENT ACCOUNTS 
  9.8                                            550,000        550,000
  9.9                 Summary by Fund
  9.10  General                 200,000       200,000
  9.11  State Government
  9.12  Special Revenue         250,000       250,000
  9.13  Workers' Compensation   100,000       100,000
  9.14  The appropriations in this section must 
  9.15  be spent with the approval of the 
  9.16  governor after consultation with the 
  9.17  legislative advisory commission under 
  9.18  Minnesota Statutes, section 3.30. 
  9.19  If an appropriation in this section for 
  9.20  either year is insufficient, the 
  9.21  appropriation for the other year is 
  9.22  available for it. 
  9.23  The special revenue appropriation is 
  9.24  available to be transferred to the 
  9.25  attorney general when the costs to 
  9.26  provide legal services to the health 
  9.27  boards exceed the biennial 
  9.28  appropriation to the attorney general 
  9.29  from the special revenue fund.  The 
  9.30  boards receiving the additional 
  9.31  services shall set their fees to cover 
  9.32  the costs. 
  9.33  Sec. 20.  EMPLOYEE RELATIONS 
  9.34  Subdivision 1.  Total 
  9.35  Appropriation                          8,862,000      8,872,000
  9.36  The amounts that may be spent from this 
  9.37  appropriation for each program are 
  9.38  specified in the following subdivisions.
  9.39  Subd. 2.  Human Resources Management
  9.40       7,454,000      7,464,000
  9.41  $650,000 each year is for redesign of 
  9.42  the state's human resources programs, 
  9.43  processes and policies, including, but 
  9.44  not limited to, improving the employee 
  9.45  performance management process, 
  9.46  recruitment and hiring, retraining and 
  9.47  deployment capabilities, and 
  9.48  classification of state positions.  Of 
  9.49  this amount, up to $200,000 each year 
  9.50  may be disbursed in the form of grants 
  9.51  to state agencies for pilot projects 
  9.52  under the direction of the commissioner 
  9.53  of employee relations. 
  9.54  $300,000 each year is to expand and 
 10.1   target state workforce diversity 
 10.2   efforts.  These funds are to support 
 10.3   expanded, dedicated functions serving 
 10.4   protected groups in obtaining and 
 10.5   retaining state employment, and secure 
 10.6   greater opportunities for advancement 
 10.7   within state employment ranks for 
 10.8   under-represented groups.  The 
 10.9   commissioner must allocate these funds 
 10.10  exclusively to the purposes described 
 10.11  in the diversity-related budget 
 10.12  initiative in the governor's proposed 
 10.13  biennial budget for the department of 
 10.14  employee relations for the biennium 
 10.15  ending June 30, 1997.  The 1995, 1996, 
 10.16  1997, and 1998 annual performance 
 10.17  reports prepared by the commissioner 
 10.18  under Minnesota Statutes, sections 
 10.19  15.90 to 15.92, must contain a separate 
 10.20  section presenting the agency's 
 10.21  activities and the outcomes 
 10.22  attributable to implementation of the 
 10.23  diversity functions expanded or 
 10.24  improved pursuant to this 
 10.25  appropriation.  The commissioner of 
 10.26  finance shall include these amounts 
 10.27  when determining the base appropriation 
 10.28  level for the department of employee 
 10.29  relations for the biennium ending June 
 10.30  30, 1999. 
 10.31  $250,000 each year is to fund 
 10.32  activities of the Minnesota quality 
 10.33  college, as established and described 
 10.34  in section 38. 
 10.35  Any unexpended balance on June 30, 
 10.36  1995, from the appropriations in Laws 
 10.37  1993, chapter 192, section 18, 
 10.38  subdivision 2, for implementation of 
 10.39  human resources management projects 
 10.40  does not cancel but is available for 
 10.41  expenditure in the 1996-1997 biennium. 
 10.42  Subd. 3.  Employee Insurance
 10.43       1,408,000      1,408,000
 10.44  $1,304,000 each year is to pay the 
 10.45  state's annual premia for workers' 
 10.46  compensation reinsurance coverage 
 10.47  through the workers' compensation 
 10.48  reinsurance association. 
 10.49  $104,000 each year is for the cost of 
 10.50  the "right-to-know" contracts with the 
 10.51  Ramsey County Medical Center Poison 
 10.52  Control Center administered through the 
 10.53  insurance program. 
 10.54  The commissioner of finance shall 
 10.55  transfer in the first year of the 
 10.56  biennium $2,000,000 from the public 
 10.57  employees' insurance program account 
 10.58  within the employee benefits internal 
 10.59  service fund to the general fund. 
 10.60  Sec. 21.  REVENUE
 10.61  Subdivision 1.  Total
 10.62  Appropriation                         77,823,000     76,824,000
 11.1                 Summary by Fund
 11.2   General              74,766,000    73,756,000
 11.3   Highway User          1,682,000     1,687,000
 11.4   Health Care
 11.5   Access                1,375,000     1,381,000
 11.6   $1,912,000 the first year and $160,000 
 11.7   the second year is for the business 
 11.8   process investment, an automated 
 11.9   technology system that will more 
 11.10  efficiently record taxpayer filing 
 11.11  information, taxpayer payments, and 
 11.12  deposit payments.  The system will also 
 11.13  allow expansion of the department's 
 11.14  electronic filing and electronic funds 
 11.15  transfer systems. 
 11.16  $75,000 the first year and $75,000 the 
 11.17  second year must be subtracted from the 
 11.18  total taconite production tax revenues 
 11.19  distributed to local units of 
 11.20  government.  These amounts shall be 
 11.21  credited to the general fund for the 
 11.22  costs and expenses incurred by the 
 11.23  department in collecting and 
 11.24  distributing taconite production tax 
 11.25  revenues. 
 11.26  Sec. 22.  AMATEUR SPORTS COMMISSION
 11.27                                           556,000        544,000
 11.28  $100,000 the first year and $85,000 the 
 11.29  second year is for Target Center 
 11.30  programming. 
 11.31  Sec. 23.  HUMAN RIGHTS 
 11.32  Subdivision 1.  Total
 11.33  Appropriation                          3,496,000      3,313,000
 11.34  The amounts that may be spent from this 
 11.35  appropriation for each activity are 
 11.36  specified in the following subdivisions.
 11.37  Subd. 2.  Contract Compliance
 11.38         420,000        420,000 
 11.39  Subd. 3.  Complaint Processing
 11.40       2,214,000      2,220,000 
 11.41  Subd. 4.  Management Services 
 11.42  and Administration
 11.43         862,000        673,000 
 11.44  Sec. 24.  MILITARY AFFAIRS  
 11.45  Subdivision 1.  Total 
 11.46  Appropriation                          9,552,000      9,537,000
 11.47  The amounts that may be spent from this 
 11.48  appropriation for each program are 
 11.49  specified in the following subdivisions.
 11.50  Subd. 2.  Maintenance of Training 
 12.1   Facilities 
 12.2        5,646,000      5,618,000
 12.3   The appropriation for planning and 
 12.4   remodeling grants for 12 armories 
 12.5   scheduled to be sold or disposed of 
 12.6   pursuant to Laws 1992, chapter 511, 
 12.7   article 2, section 50, is available 
 12.8   until June 30, 1997. 
 12.9   Subd. 3.  General Support
 12.10       1,555,000      1,568,000
 12.11  $75,000 the first year and $75,000 the 
 12.12  second year are for expenses of 
 12.13  military forces ordered to active duty 
 12.14  under Minnesota Statutes, chapter 192.  
 12.15  If the appropriation for either year is 
 12.16  insufficient, the appropriation for the 
 12.17  other year is available for it.  
 12.18  Subd. 4.  Enlistment Incentives
 12.19       2,351,000      2,351,000
 12.20  Obligations for the reenlistment bonus 
 12.21  program, suspended on December 31, 
 12.22  1991, shall be paid from the amounts 
 12.23  available within the entire enlistment 
 12.24  incentives program. 
 12.25  If appropriations for either year of 
 12.26  the biennium are insufficient, the 
 12.27  appropriation from the other year is 
 12.28  available.  The appropriations for 
 12.29  enlistment incentives are available 
 12.30  until expended. 
 12.31  Sec. 25.  VETERANS AFFAIRS             3,826,000      3,855,000
 12.32  Of this appropriation, $230,000 each 
 12.33  year is for grants to county veterans 
 12.34  offices. 
 12.35  $1,544,000 each year is for the state 
 12.36  soldiers assistance program to meet the 
 12.37  emergency financial and medical needs 
 12.38  of veterans.  For the biennium ending 
 12.39  June 30, 1997, the commissioner shall 
 12.40  limit financial assistance to veterans 
 12.41  and dependents to six months, unless 
 12.42  recipients have been certified as 
 12.43  ineligible for other benefit programs.  
 12.44  If the appropriation for either year is 
 12.45  insufficient, the appropriation for the 
 12.46  other year is available for it.  
 12.47  With the approval of the commissioner 
 12.48  of finance, the commissioner of 
 12.49  veterans affairs may transfer part or 
 12.50  all of the unencumbered balance from 
 12.51  the state soldiers assistance program 
 12.52  to other department programs during the 
 12.53  fiscal year. 
 12.54  $250,000 each year is for a grant to 
 12.55  the Vinland National Center. 
 12.56  Sec. 26.  VETERANS OF FOREIGN WARS 
 13.1                                             31,000         31,000
 13.2   For carrying out the provisions of Laws 
 13.3   1945, chapter 455. 
 13.4   Sec. 27.  MILITARY ORDER OF THE 
 13.5   PURPLE HEART                              10,000         10,000
 13.6   Sec. 28.  DISABLED AMERICAN VETERANS      12,000         12,000
 13.7   For carrying out the provisions of Laws 
 13.8   1941, chapter 425. 
 13.9   Sec. 29.  LAWFUL GAMBLING 
 13.10  CONTROL BOARD                          2,925,000      2,385,000
 13.11  $844,000 the first year and $321,000 
 13.12  the second year are for a systems 
 13.13  project to improve the quality of 
 13.14  service to the lawful gambling industry 
 13.15  and to increase effectiveness in 
 13.16  regulating that industry. 
 13.17  Sec. 30.  RACING COMMISSION              370,000        370,000
 13.18  Sec. 31.  MINNEAPOLIS EMPLOYEES 
 13.19  RETIREMENT FUND                       11,005,000     11,005,000
 13.20  $10,455,000 each year is to the 
 13.21  commissioner of finance for payment to 
 13.22  the Minneapolis employees retirement 
 13.23  fund under Minnesota Statutes, section 
 13.24  422A.101, subdivision 3.  Payment must 
 13.25  be made in four equal installments, 
 13.26  March 15, July 15, September 15, and 
 13.27  November 15, each year.  
 13.28  $550,000 each year is to the 
 13.29  commissioner of finance for payment to 
 13.30  the Minneapolis employees retirement 
 13.31  fund for the supplemental benefit for 
 13.32  pre-1974 retirees under new Minnesota 
 13.33  Statutes, section 356.865. 
 13.34  Sec. 32.  LOCAL POLICE AND FIRE 
 13.35  AMORTIZATION AID                       6,455,000      6,455,000
 13.36  Subdivision 1.  Regular
 13.37  Amortization Aid
 13.38       5,055,000      5,055,000 
 13.39  $5,055,000 each year is appropriated to 
 13.40  the commissioner of revenue for state 
 13.41  aid to amortize the unfunded liability 
 13.42  of local police and salaried 
 13.43  firefighters' relief associations, 
 13.44  under Minnesota Statutes, section 
 13.45  423A.02. 
 13.46  Subd. 2.  Supplemental
 13.47  Amortization Aid
 13.48       1,000,000      1,000,000 
 13.49  $1,000,000 each year is to the 
 13.50  commissioner of revenue for 
 13.51  supplemental state aid to amortize the 
 13.52  unfunded liability of local police and 
 13.53  salaried firefighters' relief 
 13.54  associations under Minnesota Statutes, 
 14.1   section 423A.02, subdivision 1a. 
 14.2   Subd. 3.  Firefighter Supplemental
 14.3   Reimbursements
 14.4          400,000        400,000
 14.5   $400,000 each year is to the 
 14.6   commissioner of revenue to pay 
 14.7   reimbursements to relief associations 
 14.8   for firefighter supplemental benefits 
 14.9   paid under Minnesota Statutes, section 
 14.10  424A.10. 
 14.11  Sec. 33.  SMALL AGENCY
 14.12  SUPPLEMENT                               600,000        -0-    
 14.13  This appropriation is from the general 
 14.14  fund and is available in either year of 
 14.15  the biennium.  During the biennium the 
 14.16  commissioner shall transfer the 
 14.17  necessary dollars to the small agency 
 14.18  accounts, as determined by the 
 14.19  commissioner of finance, to cover the 
 14.20  costs of the collective bargaining 
 14.21  agreement. 
 14.22  The commissioner shall report to the 
 14.23  chair of the ways and means committee 
 14.24  of the house of representatives and the 
 14.25  chair of the finance committee of the 
 14.26  senate on the transfers made under 
 14.27  these provisions. 
 14.28  Sec. 34.  MINNEAPOLIS TEACHERS
 14.29  RETIREMENT STATE AID                   2,500,000      2,500,000
 14.30  This appropriation is to the 
 14.31  commissioner of finance to make 
 14.32  payments for state matching 
 14.33  amortization aid contributions to the 
 14.34  Minneapolis teachers retirement fund 
 14.35  association under Minnesota Statutes, 
 14.36  section 354A.12. 
 14.37  Sec. 35.  ST. PAUL TEACHERS
 14.38  RETIREMENT STATE AID                     500,000        500,000
 14.39  This appropriation is to the 
 14.40  commissioner of finance to make 
 14.41  payments for state aid contributions to 
 14.42  the St. Paul teachers retirement fund 
 14.43  association under Minnesota Statutes, 
 14.44  section 354A.12. 
 14.45  Sec. 36.  MINNESOTA CONSERVATION FUND TRANSFER
 14.46  The commissioner of finance shall 
 14.47  transfer in the beginning of the 
 14.48  biennium, $3,000,000 from the Minnesota 
 14.49  conservation fund to the general fund. 
 14.50     Sec. 37.  [CONSTITUTIONAL OFFICERS.] 
 14.51     A constitutional officer need not get the approval of the 
 14.52  commissioner of finance but must notify the committee on finance 
 14.53  of the senate and the committee on ways and means of the house 
 14.54  of representatives before making a transfer between programs in 
 15.1   the same fund. 
 15.2      Sec. 38.  [43A.211] [MINNESOTA QUALITY COLLEGE.] 
 15.3      Subdivision 1.  [PURPOSE; GOALS.] The Minnesota quality 
 15.4   college is a program in the department of employee relations to 
 15.5   provide information on continuous quality improvement training 
 15.6   resources to state officials and employees in executive 
 15.7   agencies.  It is managed by the board established by subdivision 
 15.8   2.  The purpose of the program is to help agencies, officials, 
 15.9   and employees achieve the mission and goals of their 
 15.10  governmental unit, improve government's responsiveness to 
 15.11  citizens, increase workplace innovation at the employee level, 
 15.12  increase productivity, improve public leadership and employee 
 15.13  involvement, and build pride in public service.  Its goals are 
 15.14  to encourage cost savings and cost sharing among its clients, to 
 15.15  help clients ensure that money for quality improvement training 
 15.16  is wisely spent, and to develop and maintain a curriculum that 
 15.17  provides a base for the continuous improvement of quality skills 
 15.18  in Minnesota's public workforce.  The curriculum must be based 
 15.19  on a philosophy of quality that has these components:  customer 
 15.20  focus, continuous improvement, and employee empowerment and 
 15.21  leadership.  The board shall assure that state agencies and 
 15.22  employees have access to and are provided with information on 
 15.23  quality resources, encourage sharing and interagency 
 15.24  cooperation, and provide high-quality and ongoing training on 
 15.25  how to apply the philosophy of quality in public service.  
 15.26     Subd. 2.  [MANAGEMENT.] The commissioner shall convene a 
 15.27  board to manage the college.  The board must consist of the 
 15.28  commissioner; a commissioner from another agency appointed by 
 15.29  the governor; a private citizen experienced in the application 
 15.30  of the quality philosophy, appointed by the governor; a 
 15.31  representative of the exclusive representatives of employees in 
 15.32  the executive branch, selected by the exclusive representatives; 
 15.33  and two representatives of management-level executive agency 
 15.34  employees, selected by the commissioner.  The board shall take 
 15.35  action based on a consensus of its members present.  The board 
 15.36  shall identify training needs and potential resources to provide 
 16.1   different levels of training depending on the requirements and 
 16.2   stage of development of each customer.  Levels of training may 
 16.3   include basic quality training, special management training, 
 16.4   refresher courses, coaching, organizational culture change, and 
 16.5   applying quality tools.  The board shall attempt to design a 
 16.6   model curriculum, specific components and resources to achieve 
 16.7   the curriculum, and specific programs within that curriculum to 
 16.8   meet the expressed needs of customers. 
 16.9      Subd. 3.  [CUSTOMERS.] The primary customers of the college 
 16.10  are Minnesota state agencies, officials, and employees.  The 
 16.11  board may extend services to local governmental units, federal 
 16.12  agencies, educational institutions, and nonprofit organizations 
 16.13  within Minnesota, but shall first assure that the needs of their 
 16.14  primary customers are adequately met.  The curriculum must be 
 16.15  organized to meet the needs of five separate groups of 
 16.16  customers:  elected officials, appointed officials, managers, 
 16.17  quality professionals, and public employees. 
 16.18     Subd. 4.  [SUPPLIERS.] The board may draw upon a range of 
 16.19  training resources, including: 
 16.20     (1) staff of the customer agency itself; 
 16.21     (2) other agencies, including courses offered by the 
 16.22  department or the organizational analysis services of the 
 16.23  management analysis division of the department of 
 16.24  administration; 
 16.25     (3) Minnesota public and private higher education 
 16.26  institutions; 
 16.27     (4) private consultants; 
 16.28     (5) professional organizations; and 
 16.29     (6) local governmental units and federal agencies. 
 16.30     Sec. 39.  Minnesota Statutes 1994, section 240.155, 
 16.31  subdivision 1, is amended to read: 
 16.32     Subdivision 1.  [REIMBURSEMENT ACCOUNT CREDIT.] Money 
 16.33  received by the commission as reimbursement for the costs of 
 16.34  services provided by assistant veterinarians and, stewards, and 
 16.35  medical testing of horses, must be deposited in the state 
 16.36  treasury and credited to a racing commission reimbursement 
 17.1   account, except as provided under subdivision 2.  Receipts are 
 17.2   appropriated to the commission to pay the costs of providing the 
 17.3   services. 
 17.4      Sec. 40.  Minnesota Statutes 1994, section 240.24, 
 17.5   subdivision 3, is amended to read: 
 17.6      Subd. 3.  [FEES.] The commission shall establish by rule a 
 17.7   fee or schedule of fees to recover the costs of medical testing 
 17.8   of horses running at racetracks licensed by the commission.  
 17.9   Fees charged for the testing of horses shall cover the cost of 
 17.10  the medical testing laboratory.  Fee receipts shall be deposited 
 17.11  in the state treasury and credited to the general fund racing 
 17.12  commission reimbursement account. 
 17.13     Sec. 41.  Minnesota Statutes 1994, section 297A.25, 
 17.14  subdivision 11, is amended to read: 
 17.15     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
 17.16  all sales, including sales in which title is retained by a 
 17.17  seller or a vendor or is assigned to a third party under an 
 17.18  installment sale or lease purchase agreement under section 
 17.19  465.71, of tangible personal property to, and all storage, use 
 17.20  or consumption of such property by, the United States and its 
 17.21  agencies and instrumentalities, the University of Minnesota, 
 17.22  state universities, community colleges, technical colleges, 
 17.23  state academies, the Minnesota center for arts education, and 
 17.24  school districts are exempt. 
 17.25     As used in this subdivision, "school districts" means 
 17.26  public school entities and districts of every kind and nature 
 17.27  organized under the laws of the state of Minnesota, including, 
 17.28  without limitation, school districts, intermediate school 
 17.29  districts, education districts, educational cooperative service 
 17.30  units, secondary vocational cooperative centers, special 
 17.31  education cooperatives, joint purchasing cooperatives, 
 17.32  telecommunication cooperatives, regional management information 
 17.33  centers, technical colleges, joint vocational technical 
 17.34  districts, and any instrumentality of a school district, as 
 17.35  defined in section 471.59. 
 17.36     Sales exempted by this subdivision include sales under 
 18.1   section 297A.01, subdivision 3, paragraph (f), but do not 
 18.2   include sales under section 297A.01, subdivision 3, paragraph 
 18.3   (j), clause (vii).  
 18.4      Sales to hospitals and nursing homes owned and operated by 
 18.5   political subdivisions of the state are exempt under this 
 18.6   subdivision.  
 18.7      The sales to and exclusively for the use of libraries of 
 18.8   books, periodicals, audio-visual materials and equipment, 
 18.9   photocopiers for use by the public, and all cataloging and 
 18.10  circulation equipment, and cataloging and circulation software 
 18.11  for library use are exempt under this subdivision.  For purposes 
 18.12  of this paragraph "libraries" means libraries as defined in 
 18.13  section 134.001, county law libraries under chapter 134A, the 
 18.14  state library under section 480.09, and the legislative 
 18.15  reference library. 
 18.16     Sales of supplies and equipment used in the operation of an 
 18.17  ambulance service owned and operated by a political subdivision 
 18.18  of the state are exempt under this subdivision provided that the 
 18.19  supplies and equipment are used in the course of providing 
 18.20  medical care.  Sales to a political subdivision of repair and 
 18.21  replacement parts for emergency rescue vehicles and fire trucks 
 18.22  and apparatus are exempt under this subdivision.  
 18.23     Sales to a political subdivision of machinery and 
 18.24  equipment, except for motor vehicles, used directly for mixed 
 18.25  municipal solid waste collection and disposal services at a 
 18.26  solid waste disposal facility as defined in section 115A.03, 
 18.27  subdivision 10, are exempt under this subdivision.  
 18.28     Sales to political subdivisions of chore and homemaking 
 18.29  services to be provided to elderly or disabled individuals are 
 18.30  exempt. 
 18.31     Sales of telephone services and equipment to the department 
 18.32  of administration that are used to provide telecommunications 
 18.33  services through the intertechnologies revolving fund are exempt 
 18.34  under this subdivision. 
 18.35     This exemption shall not apply to building, construction or 
 18.36  reconstruction materials purchased by a contractor or a 
 19.1   subcontractor as a part of a lump-sum contract or similar type 
 19.2   of contract with a guaranteed maximum price covering both labor 
 19.3   and materials for use in the construction, alteration, or repair 
 19.4   of a building or facility.  This exemption does not apply to 
 19.5   construction materials purchased by tax exempt entities or their 
 19.6   contractors to be used in constructing buildings or facilities 
 19.7   which will not be used principally by the tax exempt entities. 
 19.8      This exemption does not apply to the leasing of a motor 
 19.9   vehicle as defined in section 297B.01, subdivision 5, except for 
 19.10  leases entered into by the United States or its agencies or 
 19.11  instrumentalities.  
 19.12     The tax imposed on sales to political subdivisions of the 
 19.13  state under this section applies to all political subdivisions 
 19.14  other than those explicitly exempted under this subdivision, 
 19.15  notwithstanding section 115A.69, subdivision 6, 116A.25, 
 19.16  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
 19.17  469.127, 473.394, 473.448, 473.545, or 473.608 or any other law 
 19.18  to the contrary enacted before 1992. 
 19.19     Sales exempted by this subdivision include sales made to 
 19.20  other states or political subdivisions of other states, if the 
 19.21  sale would be exempt from taxation if it occurred in that state, 
 19.22  but do not include sales under section 297A.01, subdivision 3, 
 19.23  paragraphs (c) and (e). 
 19.24     Sec. 42.  Minnesota Statutes 1994, section 352.91, 
 19.25  subdivision 4, is amended to read: 
 19.26     Subd. 4.  Upon the recommendation of the commissioner of 
 19.27  corrections or the commissioner of human services, whichever is 
 19.28  the appropriate employing authority, with the approval of the 
 19.29  legislative advisory committee and with notification to and 
 19.30  receipt of comments from the legislative commission on pensions 
 19.31  and retirement, the commissioner of employee relations may 
 19.32  certify additional civil service classifications at state 
 19.33  correctional or security hospital facilities to the executive 
 19.34  director of the Minnesota state retirement system as positions 
 19.35  rendering covered correctional service.  The commissioner of 
 19.36  corrections and the commissioner of human services must 
 20.1   establish, in writing, a set of criteria upon which to base a 
 20.2   recommendation for certifying additional civil service 
 20.3   classifications as rendering covered correctional service. 
 20.4      Sec. 43.  Minnesota Statutes 1994, section 353.65, 
 20.5   subdivision 2, is amended to read: 
 20.6      Subd. 2.  The employee contribution is an amount equal to 
 20.7   7.6 6.71 percent of the total salary of the member.  This 
 20.8   contribution must be made by deduction from salary in the manner 
 20.9   provided in subdivision 4.  Where any portion of a member's 
 20.10  salary is paid from other than public funds, the member's 
 20.11  employee contribution is based on the total salary received from 
 20.12  all sources.  
 20.13     Sec. 44.  Minnesota Statutes 1994, section 353.65, 
 20.14  subdivision 3, is amended to read: 
 20.15     Subd. 3.  The employer contribution shall be an amount 
 20.16  equal to 11.4 10.07 percent of the total salary of every member. 
 20.17  This contribution shall be made from funds available to the 
 20.18  employing subdivision by the means and in the manner provided in 
 20.19  section 353.28. 
 20.20     Sec. 45.  Minnesota Statutes 1994, section 354.07, 
 20.21  subdivision 1, is amended to read: 
 20.22     Subdivision 1.  [GENERAL POWERS OF THE BOARD.] The board 
 20.23  has the power to frame bylaws for its own government and for the 
 20.24  management of the fund not inconsistent with the laws of the 
 20.25  state and to modify them at its pleasure; to adopt, alter, and 
 20.26  enforce reasonable rules not inconsistent with the laws of the 
 20.27  state for the administration and management of the fund, for the 
 20.28  payment and collection of payments from members, and for the 
 20.29  payment of withdrawals and benefits; to modify on or before 
 20.30  February 1 each year, the employer and employee contribution 
 20.31  rates, along with the employer additional contribution as 
 20.32  defined in section 354.42, subdivisions 2, 3, and 5, according 
 20.33  to the conditions and guidelines established in section 354.42, 
 20.34  subdivision 8; to pass upon and allow or disallow applications 
 20.35  for membership in the fund and for credit for teaching service; 
 20.36  to pass upon and allow or disallow claims for withdrawals, 
 21.1   pensions, or benefits payable from the fund; to adopt an 
 21.2   appropriate mortality table based on experience of the fund as 
 21.3   recommended by the commission-retained actuary and using the 
 21.4   applicable postretirement interest assumption specified in 
 21.5   section 356.215, subdivision 4d; to provide for the payment out 
 21.6   of the fund of necessary expenses for the administration of the 
 21.7   fund and of claims for withdrawals, pensions, or benefits 
 21.8   allowed. 
 21.9      Sec. 46.  Minnesota Statutes 1994, section 354.42, 
 21.10  subdivision 2, is amended to read: 
 21.11     Subd. 2.  [EMPLOYEE.] The employee contribution in fiscal 
 21.12  year 1995 to the fund shall be an amount equal to 6.5 percent of 
 21.13  the salary of every coordinated member and 10.5 percent of the 
 21.14  salary of every basic member.  In subsequent years, the board 
 21.15  may retain or modify these contribution rates in accordance with 
 21.16  the conditions and guidelines enumerated in subdivision 8.  This 
 21.17  contribution shall be made by deduction from salary.  Where any 
 21.18  portion of a member's salary is paid from other than public 
 21.19  funds, such member's employee contribution shall be based on the 
 21.20  entire salary received.  
 21.21     Sec. 47.  Minnesota Statutes 1994, section 354.42, 
 21.22  subdivision 3, is amended to read: 
 21.23     Subd. 3.  [EMPLOYER.] The employer contribution in fiscal 
 21.24  year 1995 to the fund shall be an amount equal to 4-1/2 percent 
 21.25  of the salary of each coordinated member and 8-1/2 percent of 
 21.26  the salary of each basic member.  In subsequent years, the board 
 21.27  may retain or modify these contribution rates in accordance with 
 21.28  the conditions and guidelines enumerated in subdivision 8.  
 21.29     Sec. 48.  Minnesota Statutes 1994, section 354.42, 
 21.30  subdivision 5, is amended to read: 
 21.31     Subd. 5.  [ADDITIONAL EMPLOYER CONTRIBUTION.] To amortize 
 21.32  the unfunded actuarial accrued liability computed under the 
 21.33  entry age actuarial cost method and disclosed under the annual 
 21.34  actuarial valuations prepared by the commission-retained actuary 
 21.35  under section 356.215, an additional employer contribution shall 
 21.36  be made in the amount of 3.64 percent of the salary of each 
 22.1   member in fiscal year 1995.  In subsequent years, the board may 
 22.2   retain or modify the additional employer contribution rate in 
 22.3   accordance with the conditions and guidelines enumerated in 
 22.4   subdivision 8.  
 22.5      This contribution must be made in the manner provided in 
 22.6   section 354.52, subdivision 4. 
 22.7      By January 1 of each year, the board of directors shall 
 22.8   report to the legislative commission on pensions and retirement, 
 22.9   the chair of the committee on appropriations of the house of 
 22.10  representatives, and the chair of the committee on finance of 
 22.11  the senate on the amount raised by the additional employer 
 22.12  contribution rate in effect and whether that amount is less 
 22.13  than, the same as, or more than the required amortization 
 22.14  contribution determined under section 356.215. 
 22.15     Sec. 49.  Minnesota Statutes 1994, section 354.42, is 
 22.16  amended by adding a subdivision to read: 
 22.17     Subd. 8.  [MODIFICATION OF RATES.] (a) By February 1 of 
 22.18  each year, the board may, by a majority vote of its members in 
 22.19  regular or special meeting, modify the employer and employee 
 22.20  contribution rates to the fund to be effective the following 
 22.21  July 1, and is subject to the following conditions: 
 22.22     (1) any change in contribution rates must be certified in 
 22.23  writing to the commissioner of finance and the executive 
 22.24  director of the legislative commission on pensions and 
 22.25  retirement by the executive director of the fund; 
 22.26     (2) rate changes are effective unless the legislative 
 22.27  commission on pensions and retirement has, by a majority vote of 
 22.28  its members, rejected the proposed modifications and notice in 
 22.29  writing of such rejection has been given by the commission to 
 22.30  the executive director of the fund before June 1 of the same 
 22.31  year; 
 22.32     (3) any reduction to rates must first be applied to the 
 22.33  employer additional contribution defined under subdivision 5; 
 22.34     (4) any total reduction exceeding the employer additional 
 22.35  contribution must then be applied to the employer and employee 
 22.36  rates under subdivisions 2 and 3 in the same proportions as in 
 23.1   effect on July 1, 1994; and 
 23.2      (5) any increase in rates must be applied to the employer 
 23.3   and employee rates under subdivisions 2 and 3 in the same 
 23.4   proportions as in effect on July 1, 1994. 
 23.5      (b) In deliberating whether to retain rates in effect or to 
 23.6   modify them, the board shall consider the following guidelines: 
 23.7      (1) fiduciary responsibility as defined in chapter 356A, 
 23.8   and particularly the general standard of fiduciary conduct known 
 23.9   as the "prudent person standard" described in section 356A.04, 
 23.10  subdivision 2; 
 23.11     (2) the total required contribution rate and funded ratios 
 23.12  as determined in the most recent valuation of the fund by the 
 23.13  actuary for the legislative commission on pensions and 
 23.14  retirement; and 
 23.15     (3) other information provided by the actuary for the 
 23.16  legislative commission on pensions and retirement within its 
 23.17  annual valuation and recent experience studies performed under 
 23.18  section 356.215, or through direct consultation. 
 23.19     Sec. 50.  Minnesota Statutes 1994, section 356.865, 
 23.20  subdivision 3, is amended to read: 
 23.21     Subd. 3.  [COST.] The cost of the payments made under this 
 23.22  section is the responsibility of the state.  The annual 
 23.23  amortization amount must For state fiscal years 1992 to 2001 
 23.24  inclusive, there is appropriated annually $550,000 from the 
 23.25  general fund to the commissioner of finance to be added to the 
 23.26  annual state contribution amount determined under section 
 23.27  422A.101, subdivision 3, effective July 1, 1991 and paid in 
 23.28  quarterly installments on the same schedule as the state 
 23.29  amortization aid obligation so determined. 
 23.30     Sec. 51.  [REPEALER.] 
 23.31     Minnesota Statutes 1994, section 353.65, subdivision 3a, is 
 23.32  repealed.