SF 8

  1.1                          A bill for an act 
  1.2             relating to legislative enactments; correcting 
  1.3             miscellaneous noncontroversial oversights, 
  1.4             inconsistencies, ambiguities, unintended results, and 
  1.5             technical errors; amending 1998 H.F. No. 2874, article 
  1.6             1, sections 44, subdivision 2; and 52; article 4, 
  1.7             section 16; and article 5, section 54, subdivisions 4 
  1.8             and 6; 1998 H.F. No. 3840, article 8, section 48; 
  1.9             article 12, sections 7, subdivision 2; and 9, 
  1.10            subdivision 4; article 15, section 22; 1998 H.F. No. 
  1.11            3843, sections 2, subdivision 8; 5, subdivision 3; 7, 
  1.12            subdivisions 9 and 33, 15, subdivision 5; 23, 
  1.13            subdivision 4; and 25, subdivision 9; 1998 S.F. No. 
  1.14            2407, section 31; 1998 S.F. No. 3346, article 1, 
  1.15            section 2, subdivision 3; article 3, section 23; and 
  1.16            article 6, section 119; Minnesota Statutes 1996, 
  1.17            sections 124A.22, subdivision 14, as amended; and 
  1.18            124A.29, subdivision 1, as amended; Minnesota Statutes 
  1.19            1997 Supplement, sections 124A.28, subdivision 1a, as 
  1.20            amended; 297A.25, subdivision 11, as amended; and 
  1.21            626.556, subdivision 10f, as amended. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  [CORRECTION 101.] 1998 H.F. No. 3840, article 
  1.24  15, section 22, if enacted, is amended to read: 
  1.25     Sec. 22.  [PROPERTY EXEMPT FROM TAXATION.] 
  1.26     Any properties, real or personal, owned, leased, 
  1.27  controlled, used, or occupied by the sanitary sewer board for 
  1.28  any purpose under this article are declared to be acquired, 
  1.29  owned, leased, controlled, used, and occupied for public, 
  1.30  governmental, and municipal purposes, and are exempt from 
  1.31  taxation by the state or any political subdivision of the state, 
  1.32  provided that such properties are subject to special assessments 
  1.33  levied by a political subdivision for a local improvement in 
  2.1   amounts proportionate to and not exceeding the special benefit 
  2.2   received by the properties from such improvement.  No possible 
  2.3   use of any such properties in any manner different from their 
  2.4   use as part of the disposal system at the time shall be 
  2.5   considered in determining the special benefit received by such 
  2.6   properties.  All such assessments shall be subject to final 
  2.7   approval by the board, whose determination of the benefits shall 
  2.8   be conclusive upon the political subdivision levying the 
  2.9   assessment.  All bonds, certificates of indebtedness, or other 
  2.10  obligations of the board, and the interest thereon, are exempt 
  2.11  from taxation by the state or any political subdivision of the 
  2.12  state. 
  2.13     Sec. 2.  [CORRECTION 101A.] Minnesota Statutes 1997 
  2.14  Supplement, section 297A.25, subdivision 11, as amended by 1998 
  2.15  H.F. No. 3840, article 8, section 10, if enacted, is amended to 
  2.16  read: 
  2.17     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
  2.18  all sales, including sales in which title is retained by a 
  2.19  seller or a vendor or is assigned to a third party under an 
  2.20  installment sale or lease purchase agreement under section 
  2.21  465.71, of tangible personal property to, and all storage, use 
  2.22  or consumption of such property by, the United States and its 
  2.23  agencies and instrumentalities, the University of Minnesota, 
  2.24  state universities, community colleges, technical colleges, 
  2.25  state academies, the Lola and Rudy Perpich Minnesota center for 
  2.26  arts education, an instrumentality of a political subdivision 
  2.27  that is accredited as an optional/special function school by the 
  2.28  North Central Association of Colleges and Schools, school 
  2.29  districts, public libraries, public library systems, 
  2.30  multicounty, multitype library systems as defined in section 
  2.31  134.001, county law libraries under chapter 134A, the state 
  2.32  library under section 480.09, and the legislative reference 
  2.33  library are exempt. 
  2.34     As used in this subdivision, "school districts" means 
  2.35  public school entities and districts of every kind and nature 
  2.36  organized under the laws of the state of Minnesota, including, 
  3.1   without limitation, school districts, intermediate school 
  3.2   districts, education districts, service cooperatives, secondary 
  3.3   vocational cooperative centers, special education cooperatives, 
  3.4   joint purchasing cooperatives, telecommunication cooperatives, 
  3.5   regional management information centers, and any instrumentality 
  3.6   of a school district, as defined in section 471.59. 
  3.7      Sales exempted by this subdivision include sales under 
  3.8   section 297A.01, subdivision 3, paragraph (f).  
  3.9      Sales to hospitals and nursing homes owned and operated by 
  3.10  political subdivisions of the state are exempt under this 
  3.11  subdivision.  
  3.12     Sales of supplies and equipment used in the operation of an 
  3.13  ambulance service owned and operated by a political subdivision 
  3.14  of the state are exempt under this subdivision provided that the 
  3.15  supplies and equipment are used in the course of providing 
  3.16  medical care.  Sales to a political subdivision of repair and 
  3.17  replacement parts for emergency rescue vehicles and fire trucks 
  3.18  and apparatus are exempt under this subdivision.  
  3.19     Sales to a political subdivision of machinery and 
  3.20  equipment, except for motor vehicles, used directly for mixed 
  3.21  municipal solid waste management services at a solid waste 
  3.22  disposal facility as defined in section 115A.03, subdivision 10, 
  3.23  are exempt under this subdivision.  
  3.24     Sales to political subdivisions of chore and homemaking 
  3.25  services to be provided to elderly or disabled individuals are 
  3.26  exempt. 
  3.27     Sales to a town of gravel and of machinery, equipment, and 
  3.28  accessories, except motor vehicles, used exclusively for road 
  3.29  and bridge maintenance, and leases of motor vehicles exempt from 
  3.30  tax under section 297B.03, clause (10), are exempt. 
  3.31     Sales of telephone services to the department of 
  3.32  administration that are used to provide telecommunications 
  3.33  services through the intertechnologies revolving fund are exempt 
  3.34  under this subdivision. 
  3.35     This exemption shall not apply to building, construction or 
  3.36  reconstruction materials purchased by a contractor or a 
  4.1   subcontractor as a part of a lump-sum contract or similar type 
  4.2   of contract with a guaranteed maximum price covering both labor 
  4.3   and materials for use in the construction, alteration, or repair 
  4.4   of a building or facility.  This exemption does not apply to 
  4.5   construction materials purchased by tax exempt entities or their 
  4.6   contractors to be used in constructing buildings or facilities 
  4.7   which will not be used principally by the tax exempt entities. 
  4.8      This exemption does not apply to the leasing of a motor 
  4.9   vehicle as defined in section 297B.01, subdivision 5, except for 
  4.10  leases entered into by the United States or its agencies or 
  4.11  instrumentalities.  
  4.12     The tax imposed on sales to political subdivisions of the 
  4.13  state under this section applies to all political subdivisions 
  4.14  other than those explicitly exempted under this subdivision, 
  4.15  notwithstanding section 115A.69, subdivision 6, 116A.25, 
  4.16  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
  4.17  469.127, 473.448, 473.545, or 473.608 or any other law to the 
  4.18  contrary enacted before 1992. 
  4.19     Sales exempted by this subdivision include sales made to 
  4.20  other states or political subdivisions of other states, if the 
  4.21  sale would be exempt from taxation if it occurred in that state, 
  4.22  but do not include sales under section 297A.01, subdivision 3, 
  4.23  paragraphs (c) and (e).  
  4.24     Sec. 3.  [CORRECTION 101B.] 1998 H.F. No. 3840, article 8, 
  4.25  section 48, if enacted, is amended to read: 
  4.26     Sec. 48.  [EFFECTIVE DATE.] 
  4.27     Sections 1, 3, 8, 9, 19, and 21 are effective for sales and 
  4.28  purchases made after June 30, 1998.  Sections 2 and 47 are 
  4.29  effective for sales made after June 30, 2000.  Sections 5, 13, 
  4.30  and 17 are effective for sales made after June 30, 1998.  
  4.31  Sections 6 and 7 are effective for rentals after June 30, 1998.  
  4.32  Section 10 is effective for purchases made after June 30, 1998.  
  4.33  Sections 8, 12, 14, 15, and 34 are effective the day following 
  4.34  final enactment.  Section 16 is effective for purchases made 
  4.35  after December 1, 1997.  Section 18 is effective for purchases 
  4.36  made after June 30, 1998, and before July 1, 2003.  Section 20 
  5.1   is effective for local laws enacted after June 30, 1998.  
  5.2   Sections 22 and 23 are effective July 1, 1998.  Section 24 is 
  5.3   effective December 31, 1997.  Sections 25 to 27 are effective 
  5.4   upon approval by the governing body of the city of Duluth and 
  5.5   compliance with Minnesota Statutes, section 645.021, subdivision 
  5.6   3.  Section 28 is effective upon approval by the governing body 
  5.7   of the city of Mankato and compliance with Minnesota Statutes, 
  5.8   section 645.021, subdivision 3.  Section 29 is effective upon 
  5.9   approval by the governing body of the city of Rochester and 
  5.10  compliance with Minnesota Statutes, section 645.021, subdivision 
  5.11  3.  Sections 30 to 32, 36, and 37 are effective the day after 
  5.12  the governing body of the city of St. Paul complies with 
  5.13  Minnesota Statutes, section 645.021.  Section 35 is effective 
  5.14  for transfers after November 30, 1997, and before January 1, 
  5.15  1999. 
  5.16     Sec. 4.  [CORRECTION 101C.] 1998 H.F. No. 3840, article 12, 
  5.17  section 7, subdivision 2, if enacted, is amended to read: 
  5.18     Subd. 2.  [BORDER CITY ZONE CREDIT.] (a) A corporation may 
  5.19  claim a credit against the tax imposed by sections 290.02, 
  5.20  290.0921, and 290.0922, subdivision 1, paragraph (a).  The 
  5.21  commissioner of revenue shall prescribe the method in which the 
  5.22  credit may be claimed.  This may include allowing the credit 
  5.23  only as a separately processed claim for refund. The allowable 
  5.24  credit is based on the tax liability attributable to business 
  5.25  conducted within a zone, and may be equal to all or a portion of 
  5.26  that liability, as determined by the city. 
  5.27     (b) "Tax liability" means the tax liability under sections 
  5.28  290.02, 290.0921, and 290.0922, subdivision 1, paragraph (a), 
  5.29  after any other credits. 
  5.30     (c) The tax liability attributable to business conducted 
  5.31  within a zone means the taxpayer's tax liability multiplied by a 
  5.32  fraction: 
  5.33     (1) the numerator of which is: 
  5.34     (i) the ratio of the taxpayer's property factor under 
  5.35  section 290.191 located in the border city development zone, for 
  5.36  the taxable year over the property factor denominator numerator 
  6.1   determined under section 290.191, plus 
  6.2      (ii) the ratio of the taxpayer's payroll factor under 
  6.3   section 290.191 located in the border city development zone, for 
  6.4   the taxable year over the payroll factor denominator numerator 
  6.5   determined under section 290.191; and 
  6.6      (2) the denominator of which is two. 
  6.7      (d) Any portion of the taxpayer's tax liability that is 
  6.8   attributable to illegal activity conducted in the zone must not 
  6.9   be used to calculate a credit under this subdivision. 
  6.10     (e) The credit allowed under this subdivision continues 
  6.11  through the taxable year in which the zone designation expires. 
  6.12     (f) To be eligible for a credit under this subdivision, the 
  6.13  taxpayer must file an annual return under chapter 290. 
  6.14     (g) The credit allowed under this subdivision may not 
  6.15  exceed the lesser of: 
  6.16     (1) the tax liability of the taxpayer for the taxable year; 
  6.17  or 
  6.18     (2) the amount of the tax credit certificates received by 
  6.19  the taxpayer from the city, less any tax credit certificates 
  6.20  used under section 469.1734, subdivisions 4, 5, and 6. 
  6.21     Sec. 5.  [CORRECTION 101D.] 1998 H.F. No. 3840, article 12, 
  6.22  section 9, subdivision 4, if enacted, is amended to read: 
  6.23     Subd. 4.  [INCOME TAX.] (a) Upon application by the 
  6.24  qualifying business to the city, and approval of the city, a 
  6.25  qualifying business shall receive a credit against taxes imposed 
  6.26  under chapter 290, other than the tax imposed under section 
  6.27  290.92, based on the taxable net income of the qualified 
  6.28  business attributable to the border city, but outside the border 
  6.29  city development zone, multiplied by 9.8 percent in the case of 
  6.30  a taxpayer under section 290.02, and 8.5 percent in the case of 
  6.31  a taxpayer taxable under section 290.06, subdivision 2c.  The 
  6.32  attributable net income of a qualified business in the border 
  6.33  city is determined by multiplying the taxable net income of the 
  6.34  business entity, determined as if the business were a C 
  6.35  corporation, by a fraction: 
  6.36     (1) the numerator of which is: 
  7.1      (i) the ratio of the taxpayer's property factor under 
  7.2   section 290.191 located in the border city, but outside of the 
  7.3   border city development zone, for the taxable year over the 
  7.4   property factor denominator numerator determined under section 
  7.5   290.191, plus 
  7.6      (ii) the ratio of the taxpayer's payroll factor under 
  7.7   section 290.191 located in the border city, but outside of the 
  7.8   border city development zone, for the taxable year over the 
  7.9   payroll factor denominator numerator determined under section 
  7.10  290.191; and 
  7.11     (2) the denominator of which is two. 
  7.12     (b) The credit under this subdivision applies after any 
  7.13  credit allowed under subdivision 5. 
  7.14     (c) After any notice period required by subdivision 7, the 
  7.15  city council must determine whether granting the credit is in 
  7.16  the best interest of the city, and if it so determines, must 
  7.17  approve the granting of the credit and determine its amount. 
  7.18     (d) The credit under this subdivision may not exceed the 
  7.19  amount of the tax credit certificates received by the taxpayer 
  7.20  from the city, less any tax credit certificates used under 
  7.21  section 469.1732, subdivision 2, and subdivisions 5 and 6. 
  7.22     (e) No taxpayer may receive the credit under this 
  7.23  subdivision for more than five taxable years. 
  7.24     Sec. 6.  [CORRECTION 102.] 1998 H.F. No. 3843, section 7, 
  7.25  subdivision 9, if enacted, is amended to read: 
  7.26  Subd. 9.  Flood Hazard
  7.27  Mitigation Grants                                    30,000,000
  7.28  For the flood hazard mitigation grant 
  7.29  program to local government units for 
  7.30  publicly owned capital improvements to 
  7.31  prevent or alleviate flood damages 
  7.32  under Minnesota Statutes, section 
  7.33  103F.161. 
  7.34  $1,500,000 is to construct ring dikes, 
  7.35  whether publicly or privately owned.  
  7.36  $500,000 is for a grant to Clay county 
  7.37  to remove houses in the Crestwood 
  7.38  addition in Kurtz township on the Red 
  7.39  River that are endangered by the 
  7.40  collapsing river bank.  This 
  7.41  appropriation need not be matched. 
  7.42  The commissioner shall determine other 
  8.1   project priorities as appropriate based 
  8.2   upon need.  
  8.3   As soon as the United States Army Corps 
  8.4   of Engineers section 205 flood control 
  8.5   study for the city of Breckenridge is 
  8.6   complete, the commissioner shall make a 
  8.7   recommendation to the legislature for 
  8.8   the funding necessary to complete flood 
  8.9   hazard mitigation efforts in the city. 
  8.10     Sec. 7.  [CORRECTION 103.] 1998 H.F. No. 3843, section 2, 
  8.11  subdivision 8, if enacted, is amended to read: 
  8.12  Subd. 8.  Duluth     
  8.13  (a) Library                                          22,300,000 
  8.14  To construct, furnish, and equip a new 
  8.15  library. 
  8.16  (b) Academic Space Renovation                           200,000 
  8.17  To design the renovation of vacated 
  8.18  academic and laboratory space on the 
  8.19  Duluth campus in Heller Hall, MW 
  8.20  Alworth Hall, Business and Economics, 
  8.21  and the existing library building. 
  8.22  (c) Glensheen Mansion                                   600,000
  8.23  For capital repair, reconstruction, or 
  8.24  replacement of the foundation and 
  8.25  heating, ventilating, and air 
  8.26  conditioning system of the Glensheen 
  8.27  Mansion, subject to the requirements of 
  8.28  Minnesota Statutes, section 16A.695. 
  8.29  This appropriation is from the general 
  8.30  fund. 
  8.31     Sec. 8.  [CORRECTION 103A.] 1998 H.F. No. 3843, section 5, 
  8.32  subdivision 3, if enacted, is amended to read: 
  8.33  Subd. 3.  Youth Enrichment                            5,000,000 
  8.34  (a) For grants to local government 
  8.35  units to design, furnish, equip, 
  8.36  renovate, replace, or construct parks 
  8.37  and recreation facilities and school 
  8.38  facilities to provide youth, with 
  8.39  preference for youth in grades 4 to 8, 
  8.40  with regular enrichment activities 
  8.41  during nonschool hours, including after 
  8.42  school, evenings, weekends, and school 
  8.43  vacation periods, and that will provide 
  8.44  equal access and programming for all 
  8.45  children.  The buildings or facilities 
  8.46  may be leased to nonprofit community 
  8.47  organizations, subject to Minnesota 
  8.48  Statutes, section 16A.695, for the same 
  8.49  purposes.  Enrichment programs include 
  8.50  academic enrichment, homework 
  8.51  assistance, computer and technology 
  8.52  use, arts and cultural activities, 
  8.53  clubs, school-to-work and workforce 
  8.54  development, athletic, and recreational 
  8.55  activities.  Grants must be used to 
  8.56  expand the number of children 
  9.1   participating in enrichment programs or 
  9.2   improve the quality or range of program 
  9.3   offerings.  The facilities must be 
  9.4   fully available for programming 
  9.5   sponsored by nonprofit and community 
  9.6   groups serving youth, or school, 
  9.7   county, or city programs, for maximum 
  9.8   hours after school, evenings, weekends, 
  9.9   summers, and other school vacation 
  9.10  periods.  Priority must be given to 
  9.11  proposals that demonstrate 
  9.12  collaborations among private, 
  9.13  nonprofit, and public agencies, 
  9.14  including regional entities dealing 
  9.15  with at-risk youth, and community and 
  9.16  parent organizations in arranging for 
  9.17  programming, staffing, transportation, 
  9.18  and equipment.  All proposals must 
  9.19  include an inventory of existing 
  9.20  facilities and an assessment of 
  9.21  programming needs in the community. 
  9.22  (b) $1,000,000 is for enrichment grants 
  9.23  within the city of Minneapolis.  
  9.24  (c) $2,000,000 is for enrichment grants 
  9.25  within the city of St. Paul.  
  9.26  (d) $1,000,000 is for enrichment grants 
  9.27  in metropolitan statistical areas 
  9.28  outside of the cities of Minneapolis 
  9.29  and St. Paul.  Priority must be given 
  9.30  to school attendance areas with high 
  9.31  concentrations of children eligible for 
  9.32  free or reduced school lunch and to 
  9.33  government units demonstrating a 
  9.34  commitment to collaborative youth 
  9.35  efforts. 
  9.36  (e) $1,000,000 is for enrichment grants 
  9.37  for areas outside of metropolitan 
  9.38  statistical areas and outside of the 
  9.39  cities of Minneapolis and St. Paul.  
  9.40  Priority must be given to school 
  9.41  attendance areas with high 
  9.42  concentrations of children eligible for 
  9.43  free or reduced school lunch and to 
  9.44  government units demonstrating a 
  9.45  commitment to collaborative youth 
  9.46  efforts. 
  9.47  (f) Each grant must be matched by one 
  9.48  dollar from nonstate sources for each 
  9.49  two dollars of state money.  In-kind 
  9.50  contributions of facilities may be used 
  9.51  for the local match.  The value of 
  9.52  in-kind contributions must be 
  9.53  determined by the commissioner of 
  9.54  finance. 
  9.55     Sec. 9.  [CORRECTION 103B.] 1998 H.F. No. 3843, section 7, 
  9.56  subdivision 33, if enacted, is amended to read: 
  9.57  Subd. 33.  Bald Eagle Center                              500,000
  9.58  To the commissioner of administration 
  9.59  for a grant to the city of Wabasha for 
  9.60  construction of the American bald eagle 
  9.61  center.  The city of Wabasha may enter 
  9.62  into a lease or management agreement 
 10.1   with a nonprofit corporation under 
 10.2   Minnesota Statutes, section 16A.695.  
 10.3   This appropriation is not available 
 10.4   until at least $1,000,000 has been 
 10.5   committed from nonstate sources. 
 10.6      Sec. 10.  [CORRECTION 103C.] 1998 H.F. No. 3843, section 
 10.7   15, subdivision 5, if enacted, is amended to read: 
 10.8   Subd. 5.  Tennis Facility                               800,000
 10.9   For a grant to the city of St. Paul to 
 10.10  design a tennis center to offer indoor 
 10.11  tennis facilities, subject to the 
 10.12  requirements of Minnesota Statutes, 
 10.13  section 16A.695.  The center may be 
 10.14  constructed only after endorsement by a 
 10.15  national governing body member of the 
 10.16  United States Olympic Committee.  
 10.17     Sec. 11.  [CORRECTION 103D.] 1998 H.F. No. 3843, section 
 10.18  23, subdivision 4, if enacted, is amended to read: 
 10.19  Subd. 4.  Phillips Neighborhood Job
 10.20  Creation, Green Institute                             1,500,000
 10.21  To the city of Minneapolis for a grant 
 10.22  to the Green Institute to design, 
 10.23  construct, furnish, and equip a 
 10.24  building to house the Phillips 
 10.25  Ecoenterprise Center in the Phillips 
 10.26  neighborhood in south Minneapolis to 
 10.27  create up to 200 jobs in businesses, 
 10.28  many of which specialize in energy 
 10.29  conservation, renewable energy, 
 10.30  environmental technology, recycling, 
 10.31  reuse, and related fields.  One-half of 
 10.32  the job openings must be targeted for 
 10.33  persons on public assistance or below 
 10.34  150 percent of the federal poverty 
 10.35  level.  This grant must be matched on a 
 10.36  one-to-one basis from nonstate sources 
 10.37  of debt and equity.  The city may enter 
 10.38  into a lease or management agreement 
 10.39  with the Green Institute subject to 
 10.40  Minnesota Statutes, section 16A.695. 
 10.41  This appropriation is from the general 
 10.42  fund. 
 10.43     Sec. 12.  [CORRECTION 103E.] 1998 H.F. No. 3843, section 
 10.44  25, subdivision 9, if enacted, is amended to read: 
 10.45  Subd. 9.  Treaty Site History
 10.46  Center                                                  400,000
 10.47  For a grant to the Nicollet county 
 10.48  historical society to design and 
 10.49  construct a new central exhibit at the 
 10.50  treaty site history center, subject to 
 10.51  the requirements of Minnesota Statutes, 
 10.52  section 16A.695.  This appropriation is 
 10.53  not available until an equal amount has 
 10.54  been committed from nonstate sources. 
 10.55  This appropriation is from the general 
 10.56  fund. 
 11.1      Sec. 13.  [CORRECTION 104.] 1998 S.F. No. 2407, section 31, 
 11.2   if enacted, is amended to read: 
 11.3      Sec. 31.  [APPROPRIATION.] 
 11.4      $302,700 is appropriated from the trunk highway fund for 
 11.5   fiscal year 1999 to the commissioner of public safety.  Of this 
 11.6   appropriation: 
 11.7      (1) $295,000 is for youth-oriented driver improvement 
 11.8   clinics and implementation of the graduated licensing system 
 11.9   under this act; and 
 11.10     (2) $7,700 is for implementation of section 16 17. 
 11.11     Sec. 14.  [CORRECTION 105.] 1998 S.F. No. 3346, article 1, 
 11.12  section 2, subdivision 3, if enacted, is amended to read: 
 11.13  Subd. 3.  Basic Health Care Grants
 11.14     (97,529,000)  (146,802,000)
 11.15                Summary by Fund
 11.16  General             (94,591,000) (128,833,000)
 11.17  Health Care Access   (2,938,000)  (17,969,000)
 11.18  The amounts that may be spent from this 
 11.19  appropriation for each purpose are as 
 11.20  follows: 
 11.21  (a) Minnesota Care Grants
 11.22  Health Care Access Fund
 11.23      (2,938,000)   (17,969,000)
 11.24  [SUBSIDIZED FAMILY HEALTH COVERAGE.] Of 
 11.25  this appropriation, $500,000 from the 
 11.26  health care access fund in fiscal year 
 11.27  1999 is to implement the 
 11.28  employer-subsidized health coverage 
 11.29  program described in article 5, section 
 11.30  45.  
 11.31  (b) MA Basic Health Care Grants-
 11.32  Families and Children
 11.33  General (32,047,000)  (65,249,000)
 11.34  [FETAL ALCOHOL SYNDROME MEDICAL 
 11.35  ASSISTANCE FEDERAL MATCH.] The 
 11.36  commissioner shall claim all available 
 11.37  federal match under Title XIX for the 
 11.38  fetal alcohol syndrome/fetal alcohol 
 11.39  effect initiatives.  Grants and 
 11.40  projects shall be developed which focus 
 11.41  treatment on community-based options 
 11.42  which consider the availability of 
 11.43  federal match. 
 11.44  (c) MA Basic Health Care Grants- 
 11.45  Elderly and  Disabled
 11.46  General (25,643,000)  (40,952,000)
 12.1   (d) General Assistance Medical Care
 12.2   General (36,901,000)  (22,632,000)
 12.3   [PRESCRIPTION DRUG BENEFIT.] (a) If, by 
 12.4   September 15, 1998, federal approval is 
 12.5   obtained to provide a prescription drug 
 12.6   benefit for qualified Medicare 
 12.7   beneficiaries at no less than 100 
 12.8   percent of the federal poverty 
 12.9   guidelines and service-limited Medicare 
 12.10  beneficiaries under Minnesota Statutes, 
 12.11  section 256B.057, subdivision 3a, at no 
 12.12  less than 120 percent of federal 
 12.13  poverty guidelines, the commissioner of 
 12.14  human services shall not implement the 
 12.15  senior citizen drug program under 
 12.16  Minnesota Statutes, section 256.955, 
 12.17  but shall implement a drug benefit in 
 12.18  accordance with the approved waiver.  
 12.19  Upon approval of this waiver, the total 
 12.20  appropriation for the senior citizen 
 12.21  drug program under Laws 1997, chapter 
 12.22  225, article 7, section 2, shall be 
 12.23  transferred to the medical assistance 
 12.24  account to fund the federally approved 
 12.25  coverage for eligible persons for 
 12.26  fiscal year 1999. 
 12.27  (b) The commissioner may seek approval 
 12.28  for a higher copayment for eligible 
 12.29  persons above 100 percent of the 
 12.30  federal poverty guidelines. 
 12.31  (c) The commissioner shall report by 
 12.32  October 15, 1998, to the chairs of the 
 12.33  health and human services policy and 
 12.34  fiscal committees of the house and 
 12.35  senate whether the waiver referred to 
 12.36  in paragraph (a) has been approved and 
 12.37  will be implemented or whether the 
 12.38  state senior citizen drug program will 
 12.39  be implemented. 
 12.40  (d) If the commissioner does not 
 12.41  receive federal waiver approval at or 
 12.42  above the level of eligibility defined 
 12.43  in paragraph (a), the commissioner 
 12.44  shall implement the program under 
 12.45  Minnesota Statutes, section 256.955. 
 12.46  [HEALTH CARE ACCESS FUND TRANSFERS TO 
 12.47  THE GENERAL FUND.] Notwithstanding Laws 
 12.48  1997, chapter 203, article 1, section 
 12.49  2, subdivision 5, the commissioner 
 12.50  shall transfer funds from the health 
 12.51  care access fund to the general fund to 
 12.52  offset the projected savings to general 
 12.53  assistance medical care (GAMC) that 
 12.54  would result from the transition of 
 12.55  GAMC parents and adults without 
 12.56  children to MinnesotaCare.  For fiscal 
 12.57  year 1998, the amount transferred from 
 12.58  the health care access fund to the 
 12.59  general fund shall be $13,700,000.  The 
 12.60  amount of transfer for fiscal year 1999 
 12.61  shall be $2,659,000. 
 12.62     Sec. 15.  [CORRECTION 105A.] 1998 S.F. No. 3346, article 3, 
 12.63  section 23, if enacted, is amended to read: 
 13.1      Sec. 23.  [RECOMMENDATIONS TO IMPLEMENT NEW REIMBURSEMENT 
 13.2   SYSTEM.] 
 13.3      (a) By January 15, 1999, the commissioner shall make 
 13.4   recommendations to the chairs of the health and human services 
 13.5   policy and fiscal committees on the repeal of specific statutes 
 13.6   and rules as well as any other additional recommendations 
 13.7   related to implementation of sections 11 and 12 14 and 16. 
 13.8      (b) In developing recommendations for nursing facility 
 13.9   reimbursement, the commissioner shall consider making each 
 13.10  nursing facility's total payment rates, both operating and 
 13.11  property rate components, prospective.  The commissioner shall 
 13.12  involve nursing facility industry and consumer representatives 
 13.13  in the development of these recommendations. 
 13.14     (c) In making recommendations for ICF/MR reimbursement, the 
 13.15  commissioner may consider methods of establishing payment rates 
 13.16  that take into account individual client costs and needs, 
 13.17  include provisions to establish links between performance 
 13.18  indicators and reimbursement and other performance incentives, 
 13.19  and allow local control over resources necessary for local 
 13.20  agencies to set rates and contract with ICF/MR facilities.  In 
 13.21  addition, the commissioner may establish methods that provide 
 13.22  information to consumers regarding service quality as measured 
 13.23  by performance indicators.  The commissioner shall involve 
 13.24  ICF/MR industry and consumer representatives in the development 
 13.25  of these recommendations. 
 13.26     Sec. 16.  [CORRECTION 105B.] 1998 S.F. No. 3346, article 6, 
 13.27  section 119, if enacted, is amended to read: 
 13.28     Sec. 119.  [EFFECTIVE DATES.] 
 13.29     (a) Sections 2, 3, 4, 7, 8, 19, 90, 95, and 102, and 112 
 13.30  are effective the day following final enactment. 
 13.31     (b) Section 9 is effective June 1, 1998. 
 13.32     (c) Section 10 is effective October 1, 1998. 
 13.33     (d) Section 50 is effective for all applications for MFIP-S 
 13.34  made on or after July 1, 1998. 
 13.35     (e) Section 12 is effective March 30, 1998. 
 13.36     (f) Section 51 is effective for MFIP-S applications 
 14.1   received on or after January 1, 1999, and for all MFIP-S 
 14.2   recertifications occurring on or after January 1, 1999. 
 14.3      Sec. 17.  [CORRECTION 106.] Minnesota Statutes 1996, 
 14.4   section 124A.22, subdivision 14, as amended by 1998 S.F. No. 
 14.5   2082, article 12, section 5, and 1998 H F. No. 2874, article 1, 
 14.6   section 31, if enacted, is amended to read: 
 14.7      Subd. 14.  [GRADUATION STANDARDS IMPLEMENTATION REVENUE.] 
 14.8   (a) A school district's graduation standards implementation 
 14.9   revenue is equal to $52 times its actual pupil units for fiscal 
 14.10  year 1999 plus $14 times its actual pupil units for fiscal year 
 14.11  1999 if the district implements the graduation rule under 
 14.12  section 121.1114, paragraph (b), and $43 per pupil unit for all 
 14.13  districts for fiscal year 2000 and later.  Graduation standards 
 14.14  implementation revenue is reserved and must be used according to 
 14.15  paragraphs (b) and (c). 
 14.16     (b) For fiscal year 1999, revenue must be reserved for 
 14.17  programs according to clauses (1) to (3). 
 14.18     (1) At least $20 per actual pupil unit plus $14 per actual 
 14.19  pupil unit for a district that implements the graduation rule 
 14.20  under section 121.1114, paragraph (b), must be allocated to 
 14.21  school sites in proportion to the number of students enrolled at 
 14.22  each school site weighted according to section 124.17, 
 14.23  subdivision 1, and is reserved for programs designed to enhance 
 14.24  the implementation of the graduation rule through intensive 
 14.25  staff development and decentralized decision making. 
 14.26     (2) At least $5 per actual pupil unit is reserved for 
 14.27  gifted and talented programs that are integrated with the 
 14.28  graduation rule.  This aid must supplement, not supplant, money 
 14.29  spent on gifted and talented programs authorized under Laws 
 14.30  1997, First Special Session chapter 4, article 5, section 24. 
 14.31     (3) Remaining aid under this paragraph must be used: 
 14.32     (i) for technology purposes including wiring, network 
 14.33  connections, and other technology-related infrastructure 
 14.34  improvements; purchase or lease of computer software and 
 14.35  hardware to be used in classrooms and for instructional 
 14.36  purposes; purchase or lease of interactive television network 
 15.1   equipment and network support; purchase or lease of computer 
 15.2   software and hardware designed to support special needs 
 15.3   programming and limited English proficiency programming; network 
 15.4   and technical support; and purchase of textbooks and other 
 15.5   instructional materials; or 
 15.6      (ii) to reduce class size. 
 15.7      (c) For fiscal year 2000 and later, revenue must be 
 15.8   allocated to school sites in proportion to the number of 
 15.9   students enrolled at each school site weighted according to 
 15.10  section 124.17, subdivision 1, and reserved for programs 
 15.11  designed to enhance the implementation of the graduation rule 
 15.12  through:  (1) staff development programs; (2) technology 
 15.13  purposes under paragraph (b), clause (3); (3) gifted and 
 15.14  talented programs; or (4) class size reduction programs based at 
 15.15  the school site. 
 15.16     (d) To the extent possible, school districts shall make 
 15.17  opportunities for graduation standards implementation available 
 15.18  to teachers employed by intermediate school districts.  If the 
 15.19  commissioner determines that the supplemental appropriation made 
 15.20  for this subdivision under section 40, subdivision 2, is in 
 15.21  excess of the amount needed for this subdivision, the 
 15.22  commissioner shall make equal payments of one-third of the 
 15.23  excess to each intermediate school district for the purpose of 
 15.24  paragraph (a). 
 15.25     (e) A district that qualifies for the referendum allowance 
 15.26  reduction under section 124A.03, subdivision 3c, and whose 
 15.27  authority referendum allowance under section 124A.03, 
 15.28  subdivision 1b, as adjusted under section 124A.03, subdivisions 
 15.29  1c and 3c, does not exceed the referendum allowance limit under 
 15.30  section 124A.03, subdivision 1c, clause (2), shall receive a 
 15.31  graduation standards implementation equity adjustment.  In 
 15.32  fiscal year 1999, the equity adjustment aid is equal to $34 per 
 15.33  actual pupil unit.  In fiscal year 2000 and thereafter, the 
 15.34  equity adjustment is equal to $25 per actual pupil unit. 
 15.35     Sec. 18.  [CORRECTION 106A.] Minnesota Statutes 1997 
 15.36  Supplement, section 124A.28, subdivision 1a, as amended by 1998 
 16.1   H.F. No. 2874, article 1, section 35, if enacted, is amended to 
 16.2   read: 
 16.3      Subd. 1a.  [BUILDING ALLOCATION.] (a) For fiscal years 1999 
 16.4   and 2000, upon approval by the commissioner, A district must 
 16.5   allocate at least the difference between its compensatory 
 16.6   revenue for that year and 95 percent of the amount of 
 16.7   compensatory revenue that the district would have received under 
 16.8   section 124A.22, subdivision 3, for fiscal year 1998 computed 
 16.9   using a basic formula allowance of $3,281 to each school 
 16.10  building in the district where the children who have generated 
 16.11  the revenue are served. 
 16.12     (b) Notwithstanding paragraph (a), for fiscal years 1999 
 16.13  and 2000, upon approval by the commissioner, a district may 
 16.14  allocate compensatory revenue not otherwise allocated under 
 16.15  paragraph (a) up to five percent of the amount of compensatory 
 16.16  revenue that the district would have received under section 
 16.17  124A.22, subdivision 3, for fiscal year 1998 to school sites 
 16.18  accordingly according to a plan adopted by the school board. 
 16.19     (c) For the purposes of this section and section 124.17, 
 16.20  subdivision 1d, "building" means education site as defined in 
 16.21  section 123.951, subdivision 1. 
 16.22     (d) If the pupil is served at a site other than one owned 
 16.23  and operated by the district, the revenue shall be paid to the 
 16.24  district and used for services for pupils who generate the 
 16.25  revenue. 
 16.26     Sec. 19.  [CORRECTION 106B.] Minnesota Statutes 1996, 
 16.27  section 124A.29, subdivision 1, as amended by 1998 H.F. No. 
 16.28  2874, article 1, section 36, if enacted, is amended to read: 
 16.29     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
 16.30  required to reserve an amount equal to at least one percent of 
 16.31  the basic formula allowance revenue under section 124A.22, 
 16.32  subdivision 2, for in-service education for programs under 
 16.33  section 126.77, subdivision 2, for staff development plans, 
 16.34  including plans for challenging instructional activities and 
 16.35  experiences under section 126.70, and for curriculum development 
 16.36  and programs, other in-service education, teachers' workshops, 
 17.1   teacher conferences, the cost of substitute teachers staff 
 17.2   development purposes, and other related costs for staff 
 17.3   development efforts.  Districts may expend an additional amount 
 17.4   of basic revenue for staff development based on their needs.  
 17.5   The school board shall initially allocate 50 percent of the 
 17.6   revenue to each school site in the district on a per teacher 
 17.7   basis, which shall be retained by the school site until used.  
 17.8   The board may retain 25 percent to be used for district wide 
 17.9   staff development efforts.  The remaining 25 percent of the 
 17.10  revenue shall be used to make grants to school sites that 
 17.11  demonstrate exemplary use of allocated staff development 
 17.12  revenue.  A grant may be used for any purpose authorized under 
 17.13  section 126.70, 126.77, subdivision 2, or for the costs of 
 17.14  curriculum development and programs, other in-service education, 
 17.15  teachers' workshops, teacher conferences, substitute teachers 
 17.16  for staff development purposes, and other staff development 
 17.17  efforts, and determined by the site decision-making team.  The 
 17.18  site decision-making team must demonstrate to the school board 
 17.19  the extent to which staff at the site have met the outcomes of 
 17.20  the program.  The board may withhold a portion of initial 
 17.21  allocation of revenue if the staff development outcomes are not 
 17.22  being met. 
 17.23     Sec. 20.  [CORRECTION 106C.] 1998 H.F. No. 2874, article 1, 
 17.24  section 44, subdivision 2, if enacted, is amended to read: 
 17.25     Subd. 2.  [GROWTH FACTOR.] A school district's growth 
 17.26  factor equals the ratio of: 
 17.27     (1) its fiscal year 1999 compensatory revenue per actual 
 17.28  pupil unit for that year less the amount of compensatory revenue 
 17.29  divided by the district's actual pupil units for fiscal year 
 17.30  1998 that the district would have received under Minnesota 
 17.31  Statutes 1996, section 124A.22, subdivision 3, for fiscal year 
 17.32  1998 computed using a basic formula allowance of $3,281; to 
 17.33     (2) the amount of compensatory revenue divided by the 
 17.34  district's actual pupil units for fiscal year 1998 that the 
 17.35  district would have received under Minnesota Statutes 1996, 
 17.36  section 124A.22, subdivision 3, for fiscal year 1998 computed 
 18.1   using a basic formula allowance of $3,281. 
 18.2      Sec. 21.  [CORRECTION 106D.] 1998 H.F. No. 2874, article 1, 
 18.3   section 52, if enacted, is amended to read: 
 18.4      Sec. 52.  [EFFECTIVE DATES.] 
 18.5      (a) Sections 1, 2, 15, 16, 17, 37, 38, and 40 are effective 
 18.6   July 1, 1998. 
 18.7      (b) Sections 4, 5, 8, 9, 12, 13, 25, 41, 42, and 43 are 
 18.8   effective for revenue for fiscal year 1998. 
 18.9      (c) Section 7 is effective retroactively to July 1, 1997, 
 18.10  for revenue for fiscal year 1999. 
 18.11     (d) Sections 10, 11, 26, 27, 28, 31, 34, and 35 are 
 18.12  effective for revenue for fiscal year 1999. 
 18.13     (e) Section Sections 3 and 14 is are effective July 1, 
 18.14  1999. 
 18.15     (f) Section 18 is effective for revenue for fiscal year 
 18.16  2000. 
 18.17     (g) Section 21 is effective retroactive for revenue for 
 18.18  fiscal year 1997. 
 18.19     (h) Sections 24, 33, and 46 are effective the day following 
 18.20  final enactment. 
 18.21     (i) Section 32 is effective for revenue for fiscal year 
 18.22  2001. 
 18.23     Sec. 22.  [CORRECTION 106E.] 1998 H.F. No. 2874, article 4, 
 18.24  section 16, if enacted, is amended to read: 
 18.25     Sec. 16.  [TAX LEVY FOR DEBT SERVICE.] 
 18.26     To pay the principal of and interest on bonds issued under 
 18.27  section 13 15, independent school district No. 625, St. Paul, 
 18.28  must levy a tax annually in an amount sufficient under Minnesota 
 18.29  Statutes, section 475.61, subdivisions 1 and 3, to pay the 
 18.30  principal of and interest on the bonds.  The tax authorized 
 18.31  under this section is in addition to the taxes authorized to be 
 18.32  levied under Minnesota Statutes, chapter 124A or 275, or other 
 18.33  law. 
 18.34     Sec. 23.  [CORRECTION 106F.] 1998 H.F. No. 2874, article 5, 
 18.35  section 54, subdivision 4, if enacted, is amended to read: 
 18.36     Subd. 4.  [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] For a 
 19.1   grant to special school district No. 1, Minneapolis, and the 
 19.2   Minneapolis park and recreation board to establish a youth 
 19.3   athletic demonstration program under section 26 45: 
 19.4        $  100,000     .....     1999 
 19.5      Sec. 24.  [CORRECTION 106G.] 1998 H.F. No. 2874, article 5, 
 19.6   section 54, subdivision 6, if enacted, is amended to read: 
 19.7      Subd. 6.  [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] 
 19.8   For a clearinghouse of best educational practices according to 
 19.9   section 19 42: 
 19.10      $2,000,000     .....     1999
 19.11     Of this amount, $500,000 is for a contract with an 
 19.12  institution of higher education for the purposes of Minnesota 
 19.13  Statutes, section 121.1115, subdivisions subdivision 1b and 1c. 
 19.14     Sec. 25.  [CORRECTION 107.] Minnesota Statutes 1997 
 19.15  Supplement, section 626.556, subdivision 10f, as amended by Laws 
 19.16  1997, Third Special Session chapter 3, section 10, is amended to 
 19.17  read: 
 19.18     Subd. 10f.  [NOTICE OF DETERMINATIONS.] Within ten working 
 19.19  days of the conclusion of an assessment, the local welfare 
 19.20  agency shall notify the parent or guardian of the child, the 
 19.21  person determined to be maltreating the child, and if 
 19.22  applicable, the director of the facility, of the determination 
 19.23  and a summary of the specific reasons for the determination.  
 19.24  The notice must also include a certification that the 
 19.25  information collection procedures under subdivision 10, 
 19.26  paragraphs (h), (i), and (j), were followed and a notice of the 
 19.27  right of a data subject to obtain access to other private data 
 19.28  on the subject collected, created, or maintained under this 
 19.29  section.  In addition, the notice shall include the length of 
 19.30  time that the records will be kept under subdivision 11c.  When 
 19.31  there is no determination of either maltreatment or a need for 
 19.32  services, the notice shall also include the alleged 
 19.33  perpetrator's right to have the records destroyed.  The 
 19.34  investigating agency shall notify the parent or guardian of the 
 19.35  child who is the subject of the report, and any person or 
 19.36  facility determined to have maltreated a child, of their appeal 
 20.1   rights under this section. 
 20.2      Sec. 26.  [EFFECTIVE DATE.] 
 20.3      Unless provided otherwise, each section of this act takes 
 20.4   effect at the time the provision being corrected takes effect.