S. F. No. 156, A bill for an act relating to consumer protection; regulating interest payments on utility deposits; amending Minnesota Statutes 1996, section 325E.02.

The bill was read for the first time.

Delmont moved that S. F. No. 156 and H. F. No. 1287, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1074, A bill for an act relating to public employees; providing that public safety dispatchers are essential employees; amending Minnesota Statutes 1996, section 179A.03, subdivision 7.

The bill was read for the first time.

Pugh moved that S. F. No. 1074 and H. F. No. 1693, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 662, A bill for an act relating to health professions; establishing licensure requirements for volunteer practitioners of psychology; modifying requirements for licensure as licensed psychologists and for professional identification; amending Minnesota Statutes 1996, sections 148.907, subdivisions 2, 3, and 4; and 148.96, subdivisions 1 and 3; proposing coding for new law in Minnesota Statutes, chapter 148.

The bill was read for the first time.

Delmont moved that S. F. No. 662 and H. F. No. 861, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 215, A bill for an act relating to state government; modifying previous appropriations for certain capital improvements; amending Laws 1994, chapter 643, sections 3, subdivision 2, 10, subdivision 10, as amended, and 15, subdivisions 2 and 4; Laws 1996, chapter 463, sections 3, subdivision 7, 13, subdivisions 2 and 4, and 24, subdivision 8.

The bill was read for the first time and referred to the Committee on Capital Investment.

S. F. No. 816, A bill for an act relating to animals; requiring court order issued on complaint of animal cruelty to require that peace officer be accompanied by veterinarian; allowing veterinarians to dock horses; modifying requirements for the care of equine animals; repealing restrictions on clipped animals; changing dog house specifications; amending Minnesota Statutes 1996, sections 343.22, subdivision 1; 343.25; 343.40, subdivision 2; and 346.38, subdivisions 4 and 5; repealing Minnesota Statutes 1996, section 343.26.

The bill was read for the first time.

Winter moved that S. F. No. 816 and H. F. No. 2065, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 912, A bill for an act relating to marriage dissolution; providing for parent education and cooperation for the children program pilot projects; providing for modification of custody order for the best interests of the child; requiring a notice; amending Minnesota Statutes 1996, sections 518.157; 518.18; and 518.68, subdivision 2; repealing Minnesota Statutes 1996, section 256.996.

S. F. No. 442, A bill for an act relating to utilities; modifying provisions relating to municipal utilities, cooperative electric cooperatives, and natural gas pipelines; regulating use of public rights-of-way by telecommunications carriers; creating task force; requiring rulemaking; amending Minnesota Statutes 1996, sections 237.04; 237.16, subdivision 1; and 237.74, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 237; and 238; repealing Minnesota Statutes 1996, section 237.163, subdivision 5.

The bill was read for the first time.

Jennings moved that S. F. No. 442 and H. F. No. 322, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 985, A bill for an act relating to crimes; driving while impaired; providing criminal penalties for persons operating recreational vehicles who refuse an alcohol test; increasing criminal penalties, minimum sentences, and administrative sanctions for persons driving motor vehicles and operating recreational vehicles with an alcohol concentration of 0.20 or more; providing more severe requirements concerning conditional release and electronic alcohol monitoring pending trial, alcohol use assessment and treatment, driver's license revocation, license plate impoundment, and vehicle forfeiture for persons driving motor vehicles and operating recreational vehicles with an alcohol concentration of 0.20 or more; authorizing the imposition of a penalty assessment of up to $1,000 for persons driving motor vehicles with an alcohol concentration of 0.20 or more; redefining relevant evidence for operating a motorboat while under the influence of alcohol; including in the definition of prior DWI offenses, the offense of driving a commercial vehicle while impaired; authorizing peace officers to stop vehicles bearing special series license plates; enhancing criminal penalties for repeat violations involving commercial motor vehicles; clarifying the definition of commercial vehicle; clarifying that certain revocation period applies only to first-time DWI offenders; making technical correction allowing the commissioner of public safety to determine examination required for reinstatement of driving privileges; providing for petition for reinstatement of commercial driver's license following disqualification; clarifying applicable requirements for licensing commercial driver instructors; striking the requirement that a second chemical test be available to a person accused of driving while impaired; making various changes to the implied consent hearing process involving what must be stated in the petition, available discovery, and the scope of the hearing; extending the period of time that a court may place an offender on probation for certain gross misdemeanor DWI violations; broadening the permissible uses of preliminary breath test results obtained in DWI situations; broadening the scope of the DWI forfeiture law to include certain implied consent license revocations; accelerating the applicability of the forfeiture law; authorizing an administrative forfeiture process; requiring courts to notify persons convicted of DWI offenses of possible vehicle forfeiture and plate impoundment for future offenses; making various technical changes; amending Minnesota Statutes 1996, sections 84.91, subdivisions 1, 2, 5, 7, 8, and by adding a subdivision; 84.911, subdivisions 2, 3, and 6; 84.912, subdivision 1; 86B.331, subdivisions 1, 2, 4, 5, 6, 7, 8, and by adding a subdivision; 86B.335, subdivisions 2, 3, 4, and 6; 86B.337, subdivision 1; 97B.066, subdivision 6, and by adding subdivisions; 168.042, subdivisions 1, 2, 4, 9, and 11, and by adding a subdivision; 169.01, subdivision 75; 169.121, subdivisions 1, 1c, 2, 3, 3a, 3b, 4, 6, and by adding a subdivision; 169.1211, subdivision 1, and by adding subdivisions; 169.1217; 169.123, subdivisions 3, 4, and 5c; 169.126, subdivision 1; 169.1261; 171.19; 171.30, by adding a subdivision; 340A.503, subdivision 2; 364.09; 609.135, subdivision 2; and 634.15, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 168; repealing Minnesota Statutes 1996, section 86B.335, subdivisions 11 and 12.

The bill was read for the first time and referred to the Committee on Ways and Means.

There being no objection, the order of business reverted to Messages from the Senate.

The following messages were received from the Senate:

Mr. Speaker:

H. F. No. 686, A bill for an act relating to landlord and tenant; prohibiting landlords from penalizing tenants solely for seeking police or emergency assistance; superseding inconsistent local regulation; authorizing the attorney general to investigate and prosecute violations; providing civil penalties; proposing coding for new law in Minnesota Statutes, chapter 504.

The Senate has appointed as such committee:

Messrs. Johnson, D. H; Ten Eyck and Ourada.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 753, A bill for an act relating to financial institutions; authorizing facsimile or electronic filings and certifications; regulating the powers and structure of certain institutions; regulating consumer credit; modifying lending authority; regulating fees and charges; making technical and conforming changes; amending Minnesota Statutes 1996, sections 46.04, by adding a subdivision; 46.044, by adding a subdivision; 46.046, by adding a subdivision; 46.047, subdivision 2; 46.07, subdivision 2; 46.131, subdivision 2; 47.20, subdivisions 9 and 14; 47.55, subdivision 1; 47.56; 47.59, subdivisions 1 and 12; 47.61, subdivision 3; 48.01, subdivision 2; 48.09, by adding a subdivision; 48.15, subdivision 2; 48.24, subdivision 2, and by adding a subdivision; 48.512, by adding subdivisions; 48.61, subdivision 7, and by adding a subdivision; 49.215, subdivision 3; 49.33; 49.42; 50.245; 51A.38, subdivision 1; 52.04, subdivision 2a, and by adding a subdivision; 52.062, subdivision 1, and by adding a subdivision; 52.063; 52.064, by adding a subdivision; 52.201; 53.04, by adding a subdivision; 53.05; 53.09, subdivision 2a; 55.06, subdivision 1; 56.07; 56.10, subdivision 1; 56.131, subdivisions 1 and 4; 59A.08, subdivision 3, and by adding a subdivision; 59A.11, subdivisions 2 and 3; 62B.04, subdivision 1; 300.20, subdivision 2; 303.25, subdivision 5; 325F.68, subdivision 2; 332.21; 332.23, subdivisions 2 and 5; proposing coding for new law in Minnesota Statutes, chapter 48; repealing Minnesota Statutes 1996, sections 13.99, subdivision 13; 47.29; 47.31; 47.32; 49.47; 49.48; 50.03; 50.23; and 59A.14.

The Senate has appointed as such committee:

Messrs. Metzen; Solon and Belanger.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

4, 5, 6, 7, 8, and by adding subdivisions; 119B.04; 119B.05, subdivisions 1, 5, 6, and by adding a subdivision; 119B.07; 119B.08, subdivisions 1 and 3; 119B.09, subdivisions 1, 2, and by adding subdivisions; 119B.10, subdivision 1; 119B.11, subdivisions 1, 3, and by adding a subdivision; 119B.12; 119B.13, subdivision 1, and by adding subdivisions; 119B.15; 119B.16, subdivision 1; 119B.18, by adding a subdivision; 119B.20, subdivisions 7, 9, and 10; 119B.21, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11; 120.05, subdivision 2; 121.831, subdivisions 3 and 4; 121.8355, subdivision 1; 121.88, subdivisions 1, 10, and by adding a subdivision; 121.882, subdivisions 2 and 6; 124.17, subdivision 2e; 124.26, subdivision 2, and by adding a subdivision; 124.2601, subdivisions 3, 4, 5, 6, and by adding a subdivision; 124.261, subdivision 1; 124.2615, subdivisions 1 and 2; 124.2711, subdivisions 1 and 2a; 124.2713, subdivisions 6 and 8; 124.2716, subdivision 3; 268.38, by adding a subdivision; 268.53, subdivision 5; 268.55, by adding a subdivision; 268.912; 268.913, subdivisions 2 and 4; and 268.914, subdivision 1; Laws 1996, chapter 463, section 4, subdivision 2, as amended; proposing coding for new law in Minnesota Statutes, chapters 119A; and 119B; repealing Minnesota Statutes 1996, sections 119B.03, subdivision 7; 119B.05, subdivisions 2 and 3; 119B.11, subdivision 2; 119B.19, subdivision 2; 119B.21, subdivision 7; 121.8355, subdivision 1a; and 268.913, subdivision 5.

The Senate has appointed as such committee:

Ms. Piper; Mr. Marty; Mrs. Lourey; Ms. Lesewski and Mrs. Robling.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 2150, A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; establishing and modifying certain programs; providing for regulation of certain activities and practices; providing for accounts, assessments, and fees; amending Minnesota Statutes 1996, sections 17.76, by adding a subdivision; 32.394, subdivision 11; 32.415; 84.0273; 84.0887, subdivision 2; 84.794, subdivision 1; 84.803, subdivision 1; 84.927, subdivision 2; 85.015, by adding a subdivision; 85.22, subdivision 2a; 85A.04, subdivision 4; 86A.23; 86B.415, subdivision 9; 92.06, subdivision 4; 92.16, subdivision 1; 92.46, by adding a subdivision; 94.10, subdivision 2; 94.165; 97B.667; 103C.501, subdivision 6; 103F.378, subdivision 1; 115.03, subdivision 5; 115A.54, subdivision 2a; 116.07, by adding a subdivision; 296.421, subdivision 5; 300.111, by adding a subdivision; 308A.101, by adding a subdivision; 308A.201, by adding a subdivision; 325E.10, subdivision 2, and by adding subdivisions; 325E.11; 325E.112, subdivision 2; 373.01, subdivision 1; Laws 1995, chapter 220, section 19, subdivision 11; and Laws 1996, chapters 351, section 2; and 463, section 7, subdivision 24; proposing coding for new law in Minnesota Statutes, chapters 4; 17; 92; 115; 116; and 219; repealing Minnesota Statutes 1996, sections 1.31; 1.32; 1.33; 1.34; 1.35; 1.36; 1.37; 1.38; 1.39; 1.40; 84B.11; and 115A.9523; Laws 1995, chapters 77, section 3; and 220, section 21; Minnesota Rules, part 7009.0060.

The Senate has appointed as such committee:

Messrs. Morse; Lessard; Ms. Anderson; Messrs. Laidig and Dille.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

certain fees; modifying housing programs; establishing a task force; providing for a manufactured home park to be a conditional use; requiring reports; amending Minnesota Statutes 1996, sections 38.02, subdivisions 1, 2, and 3; 44A.01, subdivision 2; 60A.075, by adding a subdivision; 60A.23, subdivision 8; 60A.71, by adding a subdivision; 60K.06, subdivision 2; 65B.48, subdivision 3; 72B.04, subdivision 10; 79.253, subdivision 1; 79.255, by adding a subdivision; 79.361, subdivision 1; 79.371, by adding a subdivision; 82.21, subdivision 1; 82B.09, subdivision 1; 115A.908, subdivision 2; 115B.03, subdivision 5; 115C.021, by adding a subdivision; 115C.03, subdivision 9; 115C.08, subdivision 4; 115C.09, subdivision 3, and by adding a subdivision; 115C.13; 116J.551; 116J.552, subdivision 4; 116J.553, subdivision 2; 116J.554, subdivision 1; 116J.615, subdivision 1; 116L.04, subdivision 1; 116O.05, by adding a subdivision; 116O.122, subdivision 1; 138.91, by adding a subdivision; 155A.045, subdivision 1; 176.181, subdivision 2a; 268.022, subdivision 2; 268.362, subdivision 2; 268.38, subdivision 7; 268.63; 268.672, subdivision 6, and by adding subdivisions; 268.673, subdivisions 3, 4a, and 5; 268.6751, subdivision 1; 268.677, subdivision 1; 268.681; 268.917; 270.97; 298.22, by adding a subdivision; 326.86, subdivision 1; 394.25, by adding a subdivision; 446A.04, subdivision 5; 446A.081, subdivisions 1, 4, and 9; 446A.12, subdivision 1; 462.357, by adding a subdivision; 462A.05, subdivisions 14d, 30, 39, and by adding a subdivision; 462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 4, and 6; 462A.21, subdivision 12a; 469.303; and 469.305, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 45; 79; 116J; 268; 366; 462A; and 469; repealing Minnesota Statutes 1996, sections 115A.908, subdivision 3; 268.39; 268.672, subdivision 4; 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; 268.679, subdivision 3; 462A.05, subdivision 20; 462A.206, subdivision 5; and 462A.21, subdivisions 4k, 12, and 14.

The Senate has appointed as such committee:

Messrs. Beckman; Novak; Johnson, D. H.; Limmer and Ms. Runbeck.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

subdivision 1; 126.77, subdivision 1; 126.82; 127.27, subdivision 10; 127.282; 128C.02, subdivision 2; 128C.08, subdivision 5; 134.155, subdivisions 2 and 3; 134.34, subdivision 4; 136A.233, by adding a subdivision; 169.01, subdivision 6; 169.447, subdivision 6; 169.4501, subdivisions 1 and 2; 169.4502, subdivisions 2, 7, 11, and by adding subdivisions; 169.4503, subdivisions 1, 2, 10, 13, 14, 17, 19, 23, 24, and by adding a subdivision; 169.4504, subdivision 1, and by adding a subdivision; 169.452; and 171.3215, subdivision 4; Laws 1991, chapter 265, article 1, section 30, as amended; Laws 1992, chapter 499, article 7, section 31; Laws 1995, First Special Session chapter 3, article 1, section 56; article 2, section 52; article 3, section 11, subdivisions 1, 2, and 5; article 11, section 21, subdivision 3; article 12, section 7, subdivision 1; Laws 1996, chapter 412, article 4, section 34, subdivision 4; and article 12, sections 8 and 11; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 124; 126; and 127; proposing coding for new law as Minnesota Statutes, chapter 256J; repealing Minnesota Statutes 1996, sections 121.904, subdivision 4d; 124.177; 124.225, subdivisions 13, 14, 15, 16, and 17; 124.226, subdivisions 1, 3, 3a, 6, and 10; 124.3201, subdivisions 2a and 2b; 124A.22, subdivisions 2a, 13, and 13a; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711; 124A.72; 124A.73; 126.113; 128B.10; 134.34, subdivision 4a; 134.46; 169.4502, subdivisions 6 and 9; 169.4503, subdivisions 3, 8, 9, 11, 12, and 22; and 169.454, subdivision 11; Laws 1993, chapter 146, article 5, section 20; Laws 1994, chapter 647, article 7, section 18; and Laws 1995, First Special Session chapter 3, article 12, section 8.

Patrick E. Flahaven, Secretary of the Senate

Winter moved that the House refuse to concur in the Senate amendments to H. F. No. 1684, that the Speaker appoint a Conference Committee of 5 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 1881, A bill for an act relating to the organization and operation of state government; appropriating money for the department of transportation and other agencies with certain conditions; regulating certain activities and practices; providing for fees; establishing revolving account; requiring a study; amending Minnesota Statutes 1996, sections 16B.335, subdivision 1; 161.082, by adding a subdivision; 168.011, subdivision 9; 168.018; 168A.29, subdivision 1; 169.974, subdivision 2; 171.06, subdivision 2a; 171.13, by adding a subdivision; 173.13, subdivision 4; 296.16, subdivision 1; 360.015, by adding a subdivision; 360.017, subdivision 1; and 457A.04, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 299A; repealing Minnesota Statutes 1996, section 299D.10.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Ms. Johnson, J. B.; Mr. Langseth; Ms. Flynn; Messrs. Day and Ourada.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Patrick E. Flahaven, Secretary of the Senate

Lieder moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 5 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1881. The motion prevailed.

On the motion of Winter and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams	Erhardt	Kalis	McCollum	Paymar	Swenson, D.
Anderson, B.	Evans	Kielkucki	McElroy	Pelowski	Swenson, H.
Bakk	Finseth	Kinkel	McGuire	Peterson	Sykora
Bettermann	Folliard	Knight	Milbert	Pugh	Tingelstad
Biernat	Garcia	Knoblach	Molnau	Rest	Tomassoni
Bishop	Goodno	Koskinen	Mulder	Reuter	Tompkins
Boudreau	Greenfield	Kraus	Mullery	Rhodes	Trimble
Bradley	Greiling	Krinkie	Munger	Rifenberg	Tuma
Broecker	Gunther	Kubly	Murphy	Rostberg	Tunheim
Carlson	Haas	Kuisle	Ness	Rukavina	Van Dellen
Chaudhary	Harder	Larsen	Nornes	Schumacher	Wagenius
Clark	Hasskamp	Leighton	Olson, E.	Seifert	Weaver
Commers	Hausman	Leppik	Olson, M.	Sekhon	Wejcman
Daggett	Hilty	Lieder	Opatz	Skare	Wenzel
Davids	Holsten	Lindner	Orfield	Skoglund	Westrom
Dawkins	Huntley	Long	Osskopp	Slawik	Winter
Dehler	Jaros	Luther	Osthoff	Smith	Wolf
Delmont	Jennings	Macklin	Otremba	Solberg	Workman
Dempsey	Johnson, A.	Mahon	Ozment	Stanek	Spk. Carruthers
Dorn	Johnson, R.	Mares	Paulsen	Stang
Entenza	Juhnke	Marko	Pawlenty	Sviggum

Winter moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

Pursuant to rule 1.10, Long requested immediate consideration of H. F. No. 807.

H. F. No. 807 was reported to the House.

Long moved to amend H. F. No. 807, the first engrossment, as follows:

Page 14, after line 33, insert:

"Sec. 6.

Notwithstanding any law to the contrary, for calendar year 1996 individual income tax returns, the late payment penalty under Minnesota Statutes, section 289A.60, subdivision 1, and interest under Minnesota Statutes, section 289A.55, subdivisions 2, 4, and 9, will start on May 30, 1997 instead of April 15, 1997."

Renumber the sections in sequence

Correct internal references

H. F. No. 807, A bill for an act relating to taxation; making policy changes to income and withholding taxes, property taxes, mortgage registry and deed taxes, sales and use taxes, MinnesotaCare taxes, and tax collections; providing civil penalties; amending Minnesota Statutes 1996, sections 8.30; 60A.15, subdivision 1; 270.02, subdivision 3; 270.063; 270.10, subdivisions 1 and 5; 270.101, subdivisions 2, 3, and by adding a subdivision; 270.271, by adding a subdivision; 270.273, subdivision 2; 270.276, subdivision 2; 270.67, subdivision 2; 270.68, subdivision 1; 270.69, subdivision 11; 270.701, subdivisions 2 and 5; 270.708, subdivision 1; 270.721; 270.73, subdivision 1; 271.06, subdivision 2; 271.08, subdivision 1; 271.10, subdivision 2; 275.075; 287.08; 287.28; 287.31, subdivision 1; 289A.08, subdivision 3; 289A.09, subdivision 2; 289A.20, subdivisions 1 and 2; 289A.31, subdivision 1; 289A.36, subdivision 4; 289A.37, subdivision 1; 289A.40, subdivisions 1 and 2; 289A.60, subdivision 15; 290.095, subdivision 3; 290.17, subdivision 2; 290.35, subdivision 2; 290A.04, subdivision 2h; 295.50, subdivisions 3 and 14; 295.52, subdivision 4; 295.53, subdivision 4; 295.55, subdivision 2; 297A.01, by adding a subdivision; 297A.041; 297A.07, subdivision 3; 297A.24, by adding a subdivision; 297A.25, subdivisions 12 and 41; 297A.45, subdivision 4; 297B.035, subdivision 3; 297B.11; 299F.21; 515B.1-105; and 515B.1-116; Laws 1995, chapter 264, article 10, section 15; proposing coding for new law in Minnesota Statutes, chapters 270; and 287.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 125 yeas and 3 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kahn	Marko	Pawlenty	Sviggum
Bakk	Farrell	Kalis	McCollum	Paymar	Swenson, D.
Bettermann	Finseth	Kelso	McElroy	Pelowski	Swenson, H.
Biernat	Folliard	Kielkucki	McGuire	Peterson	Sykora
Bishop	Garcia	Kinkel	Milbert	Pugh	Tingelstad
Boudreau	Goodno	Knoblach	Molnau	Rest	Tomassoni
Bradley	Greenfield	Koskinen	Mulder	Reuter	Tompkins
Broecker	Greiling	Kraus	Mullery	Rhodes	Trimble
Carlson	Gunther	Kubly	Munger	Rifenberg	Tuma
Chaudhary	Haas	Kuisle	Murphy	Rostberg	Tunheim
Clark	Harder	Larsen	Ness	Rukavina	Van Dellen
Commers	Hasskamp	Leighton	Nornes	Schumacher	Wagenius
Daggett	Hausman	Leppik	Olson, E.	Seifert	Weaver
Davids	Hilty	Lieder	Olson, M.	Sekhon	Wejcman
Dawkins	Holsten	Lindner	Opatz	Skare	Wenzel
Dehler	Huntley	Long	Orfield	Skoglund	Westrom
Delmont	Jaros	Luther	Osskopp	Slawik	Winter
Dempsey	Jennings	Macklin	Osthoff	Smith	Wolf
Dorn	Johnson, A.	Mahon	Otremba	Solberg	Workman
Entenza	Johnson, R.	Mares	Ozment	Stanek	Spk. Carruthers
Erhardt	Juhnke	Mariani	Paulsen	Stang

Those who voted in the negative were:

Anderson, B.	Knight	Krinkie

The bill was passed, as amended, and its title agreed to.

H. F. No. 2163 was reported to the House.

Long moved to amend H. F. No. 2163, the first engrossment, as follows:

Page 82, line 19, delete "$100,000" and insert "$150,000"

Page 82, line 29, before the ";" insert "and prior to the damage caused by the 1997 floods"

Page 82, line 32, delete "and"

Page 83, line 1, before the period, insert ";

(6) the property, including its improvements, has received no public assistance, grants or financing; and

(7) the property is not receiving a property tax abatement under section 469.1813"

Page 129, line 22, after the period insert "If the industrial park is not built by July 1, 2001, this exemption expires."

Page 129, line 25, after the period insert "The resolution shall contain the number of years for which the exemption is granted."

Page 130, line 5, delete everything after "(c)", and insert "The exemption under this section is limited to a maximum of five years, beginning with the assessment year immediately following when the personal property is put in operation"

Page 130, line 6, delete "2002"

Page 156, line 27, after the period insert "For purposes of this subdivision, the property tax levy does not include levies for debt service under section 475.61, subdivision 1."

Page 247, line 22, delete "10" and insert "9"

Page 247, after line 22, insert:

"Section 10 is effective for tax credit certificates issued after December 31, 1997, and used in taxable years beginning after December 31, 1997."

Page 274, delete lines 14 through 17, and insert "(ix) bakery products prepared by the retailer for consumption on the retailer's premises."

Page 290, line 32, delete "fuels, petroleum products,"

Page 290, line 33, after "fertilizers" insert "and"

Page 290, line 34, delete "electricity, gas, and steam"

Page 290, line 36, delete ", fuels and electricity"

Page 309, line 24, after "6,", insert "7,"

Page 310, line 1, delete "December 31" and insert "June 30"

Page 310, line 5, delete "7, 13,"

Page 310, line 7, after "10," insert "13,"

Rest moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 133, line 28, delete "and"

Page 133, line 31, delete the period and insert ";"

Page 133, after line 31, insert:

"(9) to fund matching requirements needed to qualify for federal or state grants or programs to the extent that either (a) the matching requirement exceeds the matching requirement in calendar year 1997, or (b) it is a new matching requirement that didn't exist prior to 1998; and

(10) to pay the expenses reasonably and necessarily incurred in preparing for or repairing the effects of natural disaster including the occurrence or threat of widespread or severe damage, injury, or loss of life or property resulting from natural causes, in accordance with standards formulated by the emergency services division of the state department of public safety, as allowed by the commissioner of revenue under section 275.70, paragraph (c)."

Page 138, line 11, after the period insert "A local governmental unit may request authorization to levy for unreimbursed costs for other natural disasters, except the 1997 floods, under section 275.70, clause (10)."

Page 138, line 11, after "request" insert "to levy under section 275.70, subdivision 5, clauses (6) or (10)"

The motion prevailed and the amendment was adopted.

Betterman, Lieder and Jennings moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 409, line 19, before "Stearns" insert "Pope,"

Page 419, after line 7, insert:

"Section 13 is effective for Pope county the day after compliance by Pope county with the requirements of Minnesota Statutes, section 645.021, subdivision 3."

The motion prevailed and the amendment was adopted.

Rifenberg; Haas; Leppik; Kraus; Swenson, H.; Abrams; Dempsey; Larsen; Stang; Rostberg; Harder; Lindner; Workman; Broecker; Anderson, B.; Reuter; Westrom; McElroy; Gunther; Dehler; Mulder; Sykora; Weaver; Tingelstad; Daggett; Erhardt; Davids; Osskopp; Knight; Kuisle; Olson, M.; Boudreau; Molnau; Stanek; Kielkucki; Nornes; Bettermann; Commers; Van Dellen; Paulsen; Tompkins; Bishop; Bradley; Macklin; Seifert; Knoblach; Tuma and Swenson, D., moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 237, after line 35, insert:

"Sec. 9. Minnesota Statutes 1996, section 290.06, is amended by adding a subdivision to read:

(b) The credit is limited to the amount of the taxpayer's tax liability. For purposes of this subdivision, "tax liability" means the tax computed under subdivision 2c and sections 290.032 and 290.091, less the credits allowed under subdivision 22 and sections 290.091, subdivision 6; 290.067; and 290.0671.

(c) Notwithstanding any law to the contrary, the amount refunded to the taxpayer because of this credit bears interest from the later of (1) 90 days from the date the taxpayer files the taxpayer's 1996 Minnesota individual income tax return, or 90 days from the date both taxpayers have filed their 1996 Minnesota income tax returns in the case of married individuals filing separate returns, or (2) November 15, 1997."

Page 247, after line 23, insert:

"Section 9 is effective only for the tax year beginning in 1996."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Rifenberg et al amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 64 yeas and 67 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Knoblach	Molnau	Rifenberg	Tingelstad
Anderson, B.	Erhardt	Koppendrayer	Mulder	Rostberg	Tompkins
Bettermann	Farrell	Kraus	Ness	Seagren	Tuma
Bishop	Finseth	Krinkie	Nornes	Seifert	Van Dellen
Boudreau	Goodno	Kuisle	Olson, M.	Smith	Weaver
Bradley	Gunther	Larsen	Osskopp	Stanek	Westfall
Broecker	Haas	Leppik	Ozment	Stang	Westrom
Commers	Harder	Lindner	Paulsen	Sviggum	Wolf
Daggett	Holsten	Macklin	Pawlenty	Swenson, D.	Workman
Davids	Kielkucki	Mares	Reuter	Swenson, H.
Dehler	Knight	McElroy	Rhodes	Sykora

Those who voted in the negative were:

Anderson, I.	Garcia	Kalis	McCollum	Pelowski	Trimble
Bakk	Greenfield	Kelso	McGuire	Peterson	Tunheim
Biernat	Greiling	Kinkel	Milbert	Pugh	Wagenius
Carlson	Hasskamp	Koskinen	Mullery	Rest	Wejcman
Chaudhary	Hilty	Kubly	Munger	Rukavina	Wenzel
Clark	Huntley	Leighton	Murphy	Schumacher	Winter
Dawkins	Jaros	Lieder	Olson, E.	Sekhon	Spk. Carruthers
Delmont	Jennings	Long	Opatz	Skare
Dorn	Johnson, A.	Luther	Orfield	Skoglund
Entenza	Johnson, R.	Mahon	Osthoff	Slawik
Evans	Juhnke	Mariani	Otremba	Solberg
Folliard	Kahn	Marko	Paymar	Tomassoni

Kubly and Long moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 72, line 33, delete everything after "(c)" and insert " The exemption under this subdivision is limited to a maximum of five years, beginning with the assessment year immediately following when the personal property is put in operation."

Page 72, delete line 34

The motion prevailed and the amendment was adopted.

Wejcman; Wagenius; Clark; McCollum; Garcia; Pawlenty; Abrams; Dorn; Johnson, R.; Rest and Leighton moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 8, after line 6, insert:

"(b) Real estate that would otherwise qualify under paragraph (a), clause (ii), only qualifies as class 1a property if it is in compliance with all rental licensing requirements and codes applicable to housing on the property at the time of payment of the property taxes. If the property is found to be out of compliance, the class rates that apply are the rates that would have applied if the property were not included in class 1a. Any tax delinquency is subject to penalties and interest."

Reletter the paragraphs in sequence

A roll call was requested and properly seconded.

The question was taken on the Wejcman et al amendment and the roll was called.

Marko moved that those not voting be excused from voting. The motion prevailed.

There were 70 yeas and 61 nays as follows:

Those who voted in the affirmative were:

Bakk	Folliard	Kahn	Marko	Paymar	Solberg
Biernat	Garcia	Kalis	McCollum	Pelowski	Swenson, D.
Carlson	Greenfield	Kelso	McGuire	Peterson	Tomassoni
Chaudhary	Greiling	Kinkel	Milbert	Pugh	Trimble
Clark	Hasskamp	Kubly	Mullery	Rest	Tunheim
Dawkins	Hausman	Leighton	Munger	Rhodes	Wagenius
Delmont	Huntley	Leppik	Murphy	Rukavina	Wejcman
Dorn	Jaros	Lieder	Olson, E.	Schumacher	Wenzel
Entenza	Jennings	Long	Opatz	Sekhon	Winter
Erhardt	Johnson, A.	Luther	Orfield	Skare	Spk. Carruthers
Evans	Johnson, R.	Mahon	Osthoff	Skoglund
Farrell	Juhnke	Mariani	Pawlenty	Slawik

Those who voted in the negative were:

Abrams	Dehler	Knoblach	Mulder	Seagren	Van Dellen
Anderson, B.	Dempsey	Koppendrayer	Ness	Seifert	Weaver
Anderson, I.	Finseth	Kraus	Nornes	Smith	Westfall
Journal of the House - 47th Day - Top of Page 3134
Bettermann	Goodno	Krinkie	Olson, M.	Stanek	Westrom
Bishop	Gunther	Kuisle	Osskopp	Stang	Wolf
Boudreau	Haas	Larsen	Otremba	Sviggum	Workman
Bradley	Harder	Lindner	Ozment	Swenson, H.
Broecker	Hilty	Macklin	Paulsen	Sykora
Commers	Holsten	Mares	Reuter	Tingelstad
Daggett	Kielkucki	McElroy	Rifenberg	Tompkins
Davids	Knight	Molnau	Rostberg	Tuma

The motion prevailed and the amendment was adopted.

Haas, Rest and Davids moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 9, line 14, strike "150" and insert "275"

The motion prevailed and the amendment was adopted.

The Speaker called Trimble to the Chair.

Macklin; Knight; Kraus; Rostberg; Osskopp; Dempsey; Broecker; Westrom; Boudreau; Van Dellen; Sykora; Haas; Stanek; Abrams; Erhardt; Lindner; Reuter; Swenson, H.; Daggett; Nornes; Bettermann; Bradley; Mulder; Larsen and Paulsen moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 29, line 32, delete "8.5" and insert "34"

A roll call was requested and properly seconded.

The question was taken on the Macklin et al amendment and the roll was called.

Marko moved that those not voting be excused from voting. The motion prevailed.

There were 65 yeas and 68 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Knight	McElroy	Rhodes	Sykora
Anderson, B.	Erhardt	Knoblach	Molnau	Rifenberg	Tingelstad
Bettermann	Farrell	Koppendrayer	Mulder	Rostberg	Tompkins
Bishop	Finseth	Kraus	Ness	Seagren	Tuma
Boudreau	Goodno	Krinkie	Nornes	Seifert	Van Dellen
Bradley	Gunther	Kuisle	Olson, M.	Smith	Weaver
Broecker	Haas	Larsen	Osskopp	Stanek	Westfall
Commers	Harder	Leppik	Ozment	Stang	Westrom
Daggett	Hasskamp	Lindner	Paulsen	Sviggum	Wolf
Davids	Holsten	Macklin	Pawlenty	Swenson, D.	Workman
Dehler	Kielkucki	Mares	Reuter	Swenson, H.

Those who voted in the negative were:

Anderson, I.	Garcia	Kahn	Marko	Paymar	Tomassoni
Bakk	Greenfield	Kalis	McCollum	Pelowski	Trimble
Biernat	Greiling	Kelso	McGuire	Peterson	Tunheim
Carlson	Hausman	Kinkel	Milbert	Pugh	Wagenius
Chaudhary	Hilty	Koskinen	Mullery	Rest	Wejcman
Clark	Huntley	Kubly	Munger	Rukavina	Wenzel
Journal of the House - 47th Day - Top of Page 3135
Dawkins	Jaros	Leighton	Murphy	Schumacher	Winter
Delmont	Jefferson	Lieder	Olson, E.	Sekhon	Spk. Carruthers
Dorn	Jennings	Long	Opatz	Skare
Entenza	Johnson, A.	Luther	Orfield	Skoglund
Evans	Johnson, R.	Mahon	Osthoff	Slawik
Folliard	Juhnke	Mariani	Otremba	Solberg

The motion did not prevail and the amendment was not adopted.

The Speaker resumed the Chair.

Bakk moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 30, after line 21, insert:

"Sec. 15. Minnesota Statutes 1996, section 290.06, is amended by adding a subdivision to read:

Subd. 26. [CREDIT FOR PROPERTY TAXES PAID ON SEASONAL RESIDENTIAL RECREATIONAL PROPERTY.] A taxpayer may take as a credit against the tax due from the taxpayer and a spouse, if any, under this chapter the credit allowed under section 290A.04, subdivision 2j. The credit allowed may not exceed the tax due under this chapter. In the case of a nonresident, or a part-year resident, the credit must be allocated based on the ratio in subdivision 2c."

Page 36, after line 8, insert:

"Sec. 21. Minnesota Statutes 1996, section 290A.04, is amended by adding a subdivision to read:

Subd. 2j. [SEASONAL RESIDENTIAL RECREATIONAL CREDIT.] If the net property taxes payable on a seasonal residential recreational property not used for commercial purposes, classified under section 273.13, subdivision 25, increase more than ten percent over its net property taxes payable in the previous year, and if the amount of the increase is $100 or more, a claimant who is an owner of the property in both years is allowed a credit under section 290.06, subdivision 26, equal to 75 percent of the first $300 of the excess of the increase over ten percent. This subdivision does not apply to the portion of an increase in taxes payable that are attributable to improvements to the property.

In addition to the other proofs required by this chapter, each claimant under this subdivision shall file with the application a copy of the property tax statement for property taxes payable in the current year and the previous year and any other documents required by the commissioner.

For purposes of this subdivision, "net property taxes payable" means property taxes payable minus credit amounts for which a claimant qualify's under this subdivision for the previous year.

The credit under this subdivision is effective for property taxes payable in 1998, for credits under section 290.06, subdivision 26, for tax year 1998, income tax returns filed in 1999; and for property taxes payable in 1999, for credits under section 290.06, subdivision 26, for tax year 1999, income tax returns filed in 2000."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The question was taken on the Bakk amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 73 yeas and 60 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Farrell	Juhnke	Mahon	Paymar	Tuma
Bakk	Finseth	Kahn	Mariani	Peterson	Tunheim
Biernat	Folliard	Kalis	Marko	Pugh	Wagenius
Chaudhary	Garcia	Kelso	McCollum	Rukavina	Wejcman
Clark	Goodno	Kielkucki	McGuire	Schumacher	Wenzel
Daggett	Greenfield	Kinkel	Milbert	Seifert	Westfall
Davids	Hasskamp	Koskinen	Mullery	Sekhon	Winter
Dawkins	Hausman	Kraus	Murphy	Skare	Spk. Carruthers
Dehler	Hilty	Kubly	Olson, E.	Skoglund
Delmont	Jaros	Leighton	Opatz	Slawik
Dorn	Jefferson	Lieder	Orfield	Solberg
Entenza	Jennings	Long	Osskopp	Tomassoni
Evans	Johnson, R.	Luther	Otremba	Trimble

Those who voted in the negative were:

Abrams	Erhardt	Koppendrayer	Mulder	Rest	Swenson, D.
Anderson, B.	Greiling	Krinkie	Munger	Reuter	Swenson, H.
Bettermann	Gunther	Kuisle	Ness	Rhodes	Sykora
Bishop	Haas	Larsen	Nornes	Rifenberg	Tingelstad
Boudreau	Harder	Leppik	Olson, M.	Rostberg	Tompkins
Bradley	Holsten	Lindner	Osthoff	Seagren	Van Dellen
Broecker	Huntley	Macklin	Ozment	Smith	Weaver
Carlson	Johnson, A.	Mares	Paulsen	Stanek	Westrom
Commers	Knight	McElroy	Pawlenty	Stang	Wolf
Dempsey	Knoblach	Molnau	Pelowski	Sviggum	Workman

The motion prevailed and the amendment was adopted.

Mahon was excused between the hours of 1:55 p.m. and 4:00 p.m.

Abrams; Kraus; Paulsen; Leppik; Stang; Kielkucki; Dempsey; Van Dellen; Westrom; Swenson, H.; Gunther; Macklin; Erhardt; Anderson, B.; Bettermann; Sykora; Bradley; McElroy; Kuisle; McElroy; Nornes; Osskopp; Daggett; Rifenberg; Mulder; Knight and Tingelstad moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Delete articles 1, 2, 4, 5, 6, 7, and 8 and insert:

Section 1. Minnesota Statutes 1996, section 273.13, subdivision 22, is amended to read:

The first $72,000 of market value of class 1a property has a net class rate of one percent of its market value and a gross class rate of 2.17 percent of its market value. For taxes payable in 1992, the market value of class 1a property that exceeds $72,000 but does not exceed $115,000 has a class rate of two percent of its market value; and the market value of class 1a property that exceeds $115,000 has a class rate of 2.5 percent of its market value. For taxes payable in 1993 and thereafter, The market value of class 1a property that exceeds $72,000 has a class rate of two 1.65 percent.

(b) Class 1b property includes homestead real estate or homestead manufactured homes used for the purposes of a homestead by

(1) any blind person, or the blind person and the blind person's spouse; or

(2) any person, hereinafter referred to as "veteran," who:

(i) served in the active military or naval service of the United States; and

(ii) is entitled to compensation under the laws and regulations of the United States for permanent and total service-connected disability due to the loss, or loss of use, by reason of amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both lower extremities, such as to preclude motion without the aid of braces, crutches, canes, or a wheelchair; and

(iii) has acquired a special housing unit with special fixtures or movable facilities made necessary by the nature of the veteran's disability, or the surviving spouse of the deceased veteran for as long as the surviving spouse retains the special housing unit as a homestead; or

(3) any person who:

(i) is permanently and totally disabled and

(ii) receives 90 percent or more of total income from

(A) aid from any state as a result of that disability; or

(B) supplemental security income for the disabled; or

(C) workers' compensation based on a finding of total and permanent disability; or

(D) social security disability, including the amount of a disability insurance benefit which is converted to an old age insurance benefit and any subsequent cost of living increases; or

(E) aid under the federal Railroad Retirement Act of 1937, United States Code Annotated, title 45, section 228b(a)5; or

(F) a pension from any local government retirement fund located in the state of Minnesota as a result of that disability; or

(G) pension, annuity, or other income paid as a result of that disability from a private pension or disability plan, including employer, employee, union, and insurance plans and

(iii) has household income as defined in section 290A.03, subdivision 5, of $50,000 or less; or

(4) any person who is permanently and totally disabled and whose household income as defined in section 290A.03, subdivision 5, is 150 percent or less of the federal poverty level.

Property is classified and assessed pursuant to clause (1) only if the commissioner of economic security certifies to the assessor that the homestead occupant satisfies the requirements of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a condition which is permanent in nature and totally incapacitates the person from working at an occupation which brings the person an income. The first $32,000 market value of class 1b property has a net class rate of .45 percent of its market value and a gross class rate of .87 percent of its market value. The remaining market value of class 1b property has a gross or net class rate using the rates for class 1 or class 2a property, whichever is appropriate, of similar market value.

(c) Class 1c property is commercial use real property that abuts a lakeshore line and is devoted to temporary and seasonal residential occupancy for recreational purposes but not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment, and that includes a portion used as a homestead by the owner, which includes a dwelling occupied as a homestead by a shareholder of a corporation that owns the resort or a partner in a partnership that owns the resort, even if the title to the homestead is held by the corporation or partnership. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property, excluding the portion used exclusively as a homestead, is used for residential occupancy and a fee is charged for residential occupancy. Class 1c property has a class rate of one .85 percent of total market value for taxes payable in 1993 and thereafter with the following limitation: the area of the property must not exceed 100 feet of lakeshore footage for each cabin or campsite located on the property up to a total of 800 feet and 500 feet in depth, measured away from the lakeshore.

Sec. 2. Minnesota Statutes 1996, section 273.13, subdivision 23, is amended to read:

Subd. 23. [CLASS 2.] (a) Class 2a property is agricultural land including any improvements that is homesteaded. The market value of the house and garage and immediately surrounding one acre of land has the same class rates as class 1a property under subdivision 22. The value of the remaining land including improvements up to $115,000 has a net class rate of .45 .35 percent of market value and a gross class rate of 1.75 percent of market value. The remaining value of class 2a property over $115,000 of market value that does not exceed 320 acres has a net class rate of one .85 percent of market value, and a gross class rate of 2.25 percent of market value. The remaining property over the $115,000 market value in excess of 320 acres has a class rate of 1.5 1.25 percent of market value, and a gross class rate of 2.25 percent of market value.

(b) Class 2b property is (1) real estate, rural in character and used exclusively for growing trees for timber, lumber, and wood and wood products; (2) real estate that is not improved with a structure and is used exclusively for growing trees for timber, lumber, and wood and wood products, if the owner has participated or is participating in a cost-sharing program for afforestation, reforestation, or timber stand improvement on that particular property, administered or coordinated by the commissioner of natural resources; (3) real estate that is nonhomestead agricultural land; or (4) a landing area or public access area of a privately owned public use airport. Class 2b property has a net class rate of 1.5 1.25 percent of market value, and a gross class rate of 2.25 percent of market value.

(c) Agricultural land as used in this section means contiguous acreage of ten acres or more, primarily used during the preceding year for agricultural purposes. Agricultural use may include pasture, timber, waste, unusable wild land, and land included in state or federal farm or conservation programs. "Agricultural purposes" as used in this section means the raising or cultivation of agricultural products. Land enrolled in the Reinvest in Minnesota program under sections 103F.505 to 103F.531 or the federal Conservation Reserve Program as contained in Public Law Number 99-198, and consisting of a minimum of ten contiguous acres, shall be classified as agricultural. Agricultural classification for property shall be determined with respect to the use of the whole parcel, and not based upon the market value of any residential structures on the parcel or contiguous parcels under the same ownership.

(d) Real estate of less than ten acres used principally for raising or cultivating agricultural products, shall be considered as agricultural land, if it is not used primarily for residential purposes.

(e) The term "agricultural products" as used in this subdivision includes:

(2) fish bred for sale and consumption if the fish breeding occurs on land zoned for agricultural use;

(3) the commercial boarding of horses if the boarding is done in conjunction with raising or cultivating agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for equestrian activities, excluding racing; and

(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed under section 97A.115.

(f) If a parcel used for agricultural purposes is also used for commercial or industrial purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and (3),

the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. The grading, sorting, and packaging of raw agricultural products for first sale is considered an agricultural purpose. A greenhouse or other building where horticultural or nursery products are grown that is also used for the conduct of retail sales must be classified as agricultural if it is primarily used for the growing of horticultural or nursery products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. Use of a greenhouse or building only for the display of already grown horticultural or nursery products does not qualify as an agricultural purpose.

The assessor shall determine and list separately on the records the market value of the homestead dwelling and the one acre of land on which that dwelling is located. If any farm buildings or structures are located on this homesteaded acre of land, their market value shall not be included in this separate determination.

(g) To qualify for classification under paragraph (b), clause (4), a privately owned public use airport must be licensed as a public airport under section 360.018. For purposes of paragraph (b), clause (4), "landing area" means that part of a privately owned public use airport properly cleared, regularly maintained, and made available to the public for use by aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing area also includes land underlying both the primary surface and the approach surfaces that comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of the landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under paragraph (b), clause (4), must be described and certified by the commissioner of transportation. The certification is effective until it is modified, or until the airport or landing area no longer meets the requirements of paragraph (b), clause (4). For purposes of paragraph (b), clause (4), "public access area" means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival and departure building in connection with the airport.

Sec. 3. Minnesota Statutes 1996, section 273.13, subdivision 24, is amended to read:

Subd. 24. [CLASS 3.] (a) Commercial and industrial property and utility real and personal property, except class 5 property as identified in subdivision 31, clause (1), is class 3a. It has a class rate of three 2.45 percent of the first $100,000 of market value for taxes payable in 1993 and thereafter, and 5.06 a class rate of 3.35 percent of the market value over $100,000. In the case of state-assessed commercial, industrial, and utility property owned by one person or entity, only one parcel has a reduced class rate on the first $100,000 of market value. In the case of other commercial, industrial, and utility property owned by one person or entity, only one parcel in each county has a reduced class rate on the first $100,000 of market value, except that:

(1) if the market value of the parcel is less than $100,000, and additional parcels are owned by the same person or entity in the same city or town within that county, the reduced class rate shall be applied up to a combined total market value of $100,000 for all parcels owned by the same person or entity in the same city or town within the county;

(2) in the case of grain, fertilizer, and feed elevator facilities, as defined in section 18C.305, subdivision 1, or 232.21, subdivision 8, the limitation to one parcel per owner per county for the reduced class rate shall not apply, but there shall be a limit of $100,000 of preferential value per site of contiguous parcels owned by the same person or entity. Only the value of the elevator portion of each parcel shall qualify for treatment under this clause. For purposes of this subdivision, contiguous parcels include parcels separated only by a railroad or public road right-of-way; and

(3) in the case of property owned by a nonprofit charitable organization that qualifies for tax exemption under section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1993, if the property is used as a business incubator, the limitation to one parcel per owner per county for the reduced class rate shall not apply, provided that the reduced rate applies only to the first $100,000 of value per parcel owned by the organization. As used in this clause, a "business incubator" is a facility used for the development of nonretail businesses, offering access to equipment, space, services, and advice to the tenant businesses, for the purpose of encouraging economic development, diversification, and job creation in the area served by the organization.

To receive the reduced class rate on additional parcels under clause (1), (2), or (3), the taxpayer must notify the county assessor that the taxpayer owns more than one parcel that qualifies under clause (1), (2), or (3).

(b) Employment property defined in section 469.166, during the period provided in section 469.170, shall constitute class 3b and has a class rate of 2.3 percent of the first $50,000 of market value and 3.6 percent of the remainder, except that for employment property located in a border city enterprise zone designated pursuant to section 469.168, subdivision 4, paragraph (c), the class rate of the first $100,000 of market value and the class rate of the remainder is determined under paragraph (a), unless the governing body of the city designated as an enterprise zone determines that a specific parcel shall be assessed pursuant to the first clause of this sentence. The governing body may provide for assessment under the first clause of the preceding sentence only for property which is located in an area which has been designated by the governing body for the receipt of tax reductions authorized by section 469.171, subdivision 1.

(c) Structures which are (i) located on property classified as class 3a, (ii) constructed under an initial building permit issued after January 2, 1996, (iii) located in a transit zone as defined under section 473.3915, subdivision 3, (iv) located within the boundaries of a school district, and (v) not primarily used for retail or transient lodging purposes, shall have a class rate of four percent on that portion of the market value in excess of $100,000 and any market value under $100,000 that does not qualify for the three percent class rate under paragraph (a). As used in item (v), a structure is primarily used for retail or transient lodging purposes if over 50 percent of its square footage is used for those purposes. The four percent rate shall also apply to improvements to existing structures that meet the requirements of items (i) to (v) if the improvements are constructed under an initial building permit issued after January 2, 1996, even if the remainder of the structure was constructed prior to January 2, 1996. For the purposes of this paragraph, a structure shall be considered to be located in a transit zone if any portion of the structure lies within the zone. If any property once eligible for treatment under this paragraph ceases to remain eligible due to revisions in transit zone boundaries, the property shall continue to receive treatment under this paragraph for a period of three years.

Sec. 4. Minnesota Statutes 1996, section 273.13, subdivision 25, is amended to read:

property used for hospital purposes, without regard to whether the property has been platted or subdivided. Class 4a property in a city with a population of 5,000 or less, that is (1) located outside of the metropolitan area, as defined in section 473.121, subdivision 2, or outside any county contiguous to the metropolitan area, and (2) whose city boundary is at least 15 miles from the boundary of any city with a population greater than 5,000 has a class rate of 2.3 percent of market value for taxes payable in 1996 and thereafter. All other Class 4a property has a class rate of 3.4 2.65 percent of market value for taxes payable in 1996 and thereafter. For purposes of this paragraph, population has the same meaning given in section 477A.011, subdivision 3.

(b) Class 4b includes:

(1) residential real estate containing less than four units, other than seasonal residential, and recreational;

(2) manufactured homes not classified under any other provision;

(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b).

Class 4b property has a class rate of 2.8 percent of market value for taxes payable in 1992, 2.5 percent of market value for taxes payable in 1993, and 2.3 1.85 percent of market value for taxes payable in 1994 and thereafter.

(c) Class 4c property includes:

(1) a structure that is:

(i) situated on real property that is used for housing for the elderly or for low- and moderate-income families as defined in Title II, as amended through December 31, 1990, of the National Housing Act or the Minnesota housing finance agency law of 1971, as amended, or rules promulgated by the agency and financed by a direct federal loan or federally insured loan made pursuant to Title II of the Act; or

(ii) situated on real property that is used for housing the elderly or for low- and moderate-income families as defined by the Minnesota housing finance agency law of 1971, as amended, or rules adopted by the agency pursuant thereto and financed by a loan made by the Minnesota housing finance agency pursuant to the provisions of the act.

This clause applies only to property of a nonprofit or limited dividend entity. Property is classified as class 4c under this clause for 15 years from the date of the completion of the original construction or substantial rehabilitation, or for the original term of the loan.

(2) a structure that is:

(i) situated upon real property that is used for housing lower income families or elderly or handicapped persons, as defined in section 8 of the United States Housing Act of 1937, as amended; and

(ii) owned by an entity which has entered into a housing assistance payments contract under section 8 which provides assistance for 100 percent of the dwelling units in the structure, other than dwelling units intended for management or maintenance personnel. Property is classified as class 4c under this clause for the term of the housing assistance payments contract, including all renewals, or for the term of its permanent financing, whichever is shorter; and

the National Housing Act; rental housing program funds under Section 8 of the United States Housing Act of 1937 or the market rate family graduated payment mortgage program funds administered by the Minnesota housing finance agency that are used for the acquisition or rehabilitation of the building; public financing provided by a local government used for the acquisition or rehabilitation of the building, including grants or loans from federal community development block grants, HOME block grants, or residential rental bonds issued under chapter 474A; or other rental housing program funds provided by the Minnesota housing finance agency for the acquisition or rehabilitation of the building.

For all properties described in clauses (1), (2), and (3) and in paragraph (d), the market value determined by the assessor must be based on the normal approach to value using normal unrestricted rents unless the owner of the property elects to have the property assessed under Laws 1991, chapter 291, article 1, section 55. If the owner of the property elects to have the market value determined on the basis of the actual restricted rents, as provided in Laws 1991, chapter 291, article 1, section 55, the property will be assessed at the rate provided for class 4a or class 4b property, as appropriate. Properties described in clauses (1)(ii), (3), and (4) may apply to the assessor for valuation under Laws 1991, chapter 291, article 1, section 55. The land on which these structures are situated has the class rate given in paragraph (b) if the structure contains fewer than four units, and the class rate given in paragraph (a) if the structure contains four or more units. This clause applies only to the property of a nonprofit or limited dividend entity.

(4) a parcel of land, not to exceed one acre, and its improvements or a parcel of unimproved land, not to exceed one acre, if it is owned by a neighborhood real estate trust and at least 60 percent of the dwelling units, if any, on all land owned by the trust are leased to or occupied by lower income families or individuals. This clause does not apply to any portion of the land or improvements used for nonresidential purposes. For purposes of this clause, a lower income family is a family with an income that does not exceed 65 percent of the median family income for the area, and a lower income individual is an individual whose income does not exceed 65 percent of the median individual income for the area, as determined by the United States Secretary of Housing and Urban Development. For purposes of this clause, "neighborhood real estate trust" means an entity which is certified by the governing body of the municipality in which it is located to have the following characteristics:

(a) it is a nonprofit corporation organized under chapter 317A;

(b) it has as its principal purpose providing housing for lower income families in a specific geographic community designated in its articles or bylaws;

(c) it limits membership with voting rights to residents of the designated community; and

(d) it has a board of directors consisting of at least seven directors, 60 percent of whom are members with voting rights and, to the extent feasible, 25 percent of whom are elected by resident members of buildings owned by the trust; and

class 1c or 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, and (4) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes shall not qualify for class 1c or 4c;

(6) real property up to a maximum of one acre of land owned by a nonprofit community service oriented organization; provided that the property is not used for a revenue-producing activity for more than six days in the calendar year preceding the year of assessment and the property is not used for residential purposes on either a temporary or permanent basis. For purposes of this clause, a "nonprofit community service oriented organization" means any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue Code of 1986, as amended through December 31, 1990. For purposes of this clause, "revenue-producing activities" shall include but not be limited to property or that portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises. Any portion of the property which is used for revenue-producing activities for more than six days in the calendar year preceding the year of assessment shall be assessed as class 3a. The use of the property for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be considered a revenue-producing activity;

(7) post-secondary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on-campus housing or housing located within two miles of the border of a college campus; and

(8) manufactured home parks as defined in section 327.14, subdivision 3.

Class 4c property has a class rate of 2.3 1.85 percent of market value, except that (i) for each parcel of seasonal residential recreational property not used for commercial purposes under clause (5) the first $72,000 of market value on each parcel has a class rate of 1.75 percent for taxes payable in 1997 and 1.5 1.2 percent for taxes payable in 1998 and thereafter, and the market value of each parcel that exceeds $72,000 has a class rate of 2.5 two percent, and (ii) manufactured home parks assessed under clause (8) have a class rate of two 1.7 percent for taxes payable in 1996, and thereafter of market value.

(d) Class 4d property includes:

(1) a structure that is:

(i) situated on real property that is used for housing for the elderly or for low and moderate income families as defined by the Farmers Home Administration;

(ii) located in a municipality of less than 10,000 population; and

(iii) financed by a direct loan or insured loan from the Farmers Home Administration. Property is classified under this clause for 15 years from the date of the completion of the original construction or for the original term of the loan.

The class rates in paragraph (c), clauses (1), (2), and (3) and this clause apply to the properties described in them, only in proportion to occupancy of the structure by elderly or handicapped persons or low and moderate income families as defined in the applicable laws unless construction of the structure had been commenced prior to January 1, 1984; or the project had been approved by the governing body of the municipality in which it is located prior to June 30, 1983; or financing of the project had been approved by a federal or state agency prior to June 30, 1983. For those properties, 4c or 4d classification is available only for those units meeting the requirements of section 273.1318.

Classification under this clause is only available to property of a nonprofit or limited dividend entity.

(2) For taxes payable in 1992, 1993, and 1994, only, buildings and appurtenances, together with the land upon which they are located, leased by the occupant under the community lending model lease-purchase mortgage loan program administered by the Federal National Mortgage Association, provided the occupant's income is no greater than 60 percent of the county or area median income, adjusted for family size and the building consists of existing single family or duplex housing. The lease agreement must provide for a portion of the lease payment to be escrowed as a nonrefundable down payment on the housing. To qualify under this clause, the taxpayer must apply to the county assessor by May 30 of each year. The application must be accompanied by an affidavit or other proof required by the assessor to determine qualification under this clause.

(3) Qualifying buildings and appurtenances, together with the land upon which they are located, leased for a period of up to five years by the occupant under a lease-purchase program administered by the Minnesota housing finance agency or a housing and redevelopment authority authorized under sections 469.001 to 469.047, provided the occupant's income is no greater than 80 percent of the county or area median income, adjusted for family size, and the building consists of two or less dwelling units. The lease agreement must provide for a portion of the lease payment to be escrowed as a nonrefundable down payment on the housing. The administering agency shall verify the occupants income eligibility and certify to the county assessor that the occupant meets the income criteria under this paragraph. To qualify under this clause, the taxpayer must apply to the county assessor by May 30 of each year. For purposes of this section, "qualifying buildings and appurtenances" shall be defined as one or two unit residential buildings which are unoccupied and have been abandoned and boarded for at least six months.

Class 4d property has a class rate of two 1.7 percent of market value except that property classified under clause (3) (2), shall have the same class rate as class 1a property.

(e) Residential rental property that would otherwise be assessed as class 4 property under paragraph (a); paragraph (b), clauses (1) and (3); paragraph (c), clause (1), (2), (3), or (4), is assessed at the class rate applicable to it under Minnesota Statutes 1988, section 273.13, if it is found to be a substandard building under section 273.1316. Residential rental property that would otherwise be assessed as class 4 property under paragraph (d) is assessed at 2.3 two percent of market value if it is found to be a substandard building under section 273.1316.

(f) Class 4e property consists of the residential portion of any structure located within a city that was converted from nonresidential use to residential use, provided that:

(1) the structure had formerly been used as a warehouse;

(2) the structure was originally constructed prior to 1940;

(3) the conversion was done after December 31, 1995, but before January 1, 2003; and

(4) the conversion involved an investment of at least $25,000 per residential unit.

Class 4e property has a class rate of 2.3 1.85 percent of market value, provided that a structure is eligible for class 4e classification only in the 12 assessment years immediately following the conversion.

Sec. 5. Minnesota Statutes 1996, section 273.13, subdivision 31, is amended to read:

Subd. 31. [CLASS 5.] Class 5 property includes:

(1) tools, implements, and machinery of an electric generating, transmission, or distribution system or a pipeline system transporting or distributing water, gas, crude oil, or petroleum products or mains and pipes used in the distribution of steam or hot or chilled water for heating or cooling buildings, which are fixtures;

(2) unmined iron ore and low-grade iron-bearing formations as defined in section 273.14; and

Class 5 property has a class rate of 5.06 3.35 percent of market value.

Sec. 6. [TIF GRANTS; APPROPRIATIONS.]

(a) The commissioner of revenue shall pay grants to municipalities, as defined in Minnesota Statutes, section 469.174, subdivision 6, for deficits in tax increment financing districts caused by the changes in class rates under this article. Municipalities must submit applications for the grants in a form prescribed by the commissioner by no later than March 1 for taxes payable during the calendar year. The maximum grant equals the lesser of:

(1) the reduction in the tax increment financing district's revenues derived from increment resulting from the class rate reductions under this article; and

(2) the amount by which the municipality's total available tax increments, including those from previous years, are less than the amount due during the calendar year to pay bonds issued and sold before and binding contracts entered into before May 19, 1997.

If the total applications for grants exceed the amount available under the appropriation, the commissioner shall proportionately reduce the grant for each municipality. These grants are available for calendar years 1998, 1999, and 2000.

(b) $6,500,000 is appropriated in fiscal year 1999 to the commissioner of revenue for purposes of this section. $5,000,000 is appropriated in fiscal year 2000 to the commissioner of revenue for purposes of this section. $5,000,000 is appropriated in fiscal year 2001 to the commissioner of revenue for purposes of this section. These appropriations do not cancel until June 30, 2001.

Sec. 7. [REPEALER.]

Minnesota Statutes 1996, sections 273.13, subdivision 32; and 473.3915, are repealed.

Sec. 8. [EFFECTIVE DATES.]

Sections 1 to 5 and 7 are effective for taxes payable in 1998 and thereafter. Section 6 is effective for grants made in calendar year 1998, 1999, and 2000.

Section 1. [273.1382] [EDUCATION HOMESTEAD CREDIT.]

Subdivision 1. [EDUCATION HOMESTEAD CREDIT.] Each year, beginning with property taxes payable in 1998, the respective county auditors shall determine the local tax rate for each school district for the general education levy certified under section 124A.23, subdivision 2 or 3. That rate shall be the general education homestead credit local tax rate for the district. The auditor shall then determine a general education homestead credit for each homestead within the county by multiplying the general education homestead credit local tax rate times the net tax capacity of the homestead for the taxes payable year times 50 percent. The amount of general education homestead credit for a homestead is limited to $450.

(b) The commissioner of revenue shall certify the total of the tax reductions granted under this section for each taxes payable year within each school district to the commissioner of children, families, and learning after July 1 and on or before August 1 of the taxes payable year. The commissioner of children, families, and learning shall reimburse each affected school district for the amount of the property tax reductions allowed under this section as provided in section 273.1392. The commissioner of children, families, and learning shall treat the reimbursement payments as entitlements for the same state fiscal year as certified, including with each district's initial payment all amounts that would have been paid up to that date, computed as if 90 percent of the annual reimbursement amount for the district were being paid one-twelfth in each month of the fiscal year.

Subd. 3. [PROPERTY TAX STATEMENTS.] The credit amount under this section for each homestead shall reduce the amount of property taxes otherwise payable to the county treasurer in that payable year, and must be separately stated on the property tax statement as a reduction, which reduction shall be identified as "general education homestead credit." The tax statement must indicate that the credit amount under this section reduces the "state general education tax" on the property.

Subd. 4. [APPROPRIATION.] An amount sufficient to make the payments required by this section is annually appropriated from the general fund to the commissioner of children, families, and learning.

Sec. 2. Minnesota Statutes 1996, section 273.1393, is amended to read:

273.1393 [COMPUTATION OF NET PROPERTY TAXES.]

Notwithstanding any other provisions to the contrary, "net" property taxes are determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in section 273.123;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) taconite homestead credit as provided in section 273.135; and

(8) supplemental homestead credit as provided in section 273.1391; and

(9) general education homestead credit as provided in section 273.1382.

The combination of all property tax credits must not exceed the gross tax amount.

Sec. 3. Minnesota Statutes 1996, section 477A.013, subdivision 9, is amended to read:

Subd. 9. [CITY AID DISTRIBUTION.] (a) In calendar year 1994 1999 and thereafter, each city shall receive an aid distribution equal to the sum of (1) the city formula aid under subdivision 8 for aid payable in 1998, and (2) its city aid base as determined for aid payable in the prior year.

(c) The total aid for any city, except a first class city, shall not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution plus (2) its total aid in the previous year before any increases or decreases under sections 16A.711, subdivision 5, and 477A.0132.

(d) Notwithstanding paragraph (c), in 1995 only, for cities which in 1992 or 1993 transferred an amount from governmental funds to their sewer and water fund in an amount greater than their net levy for taxes payable in the year in which the transfer occurred, the total aid shall not exceed the sum of (1) 20 percent of the city's net levy for the year prior to the aid distribution plus (2) its total aid in the previous year before any increases or decreases under sections 16A.711, subdivision 5, and 477A.0132.

Sec. 4. Minnesota Statutes 1996, section 477A.03, subdivision 2, is amended to read:

Subd. 2. [ANNUAL APPROPRIATION.] A sum sufficient to discharge the duties imposed by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the commissioner of revenue. For aids payable in 1996 and thereafter, the total aids paid under sections 477A.013, subdivision 9, and section 477A.0122 are the amounts certified to be paid in the previous year, adjusted for inflation as provided under subdivision 3. Aid payments to counties under section 477A.0121 are limited to $20,265,000 in 1996. Aid payments to counties under section 477A.0121 are limited to $27,571,625 in 1997. For aid payable in 1998 and thereafter, the total aids paid under section 477A.0121 are the amounts certified to be paid in the previous year, adjusted for inflation as provided under subdivision 3. For aid payable in fiscal year 2000 and thereafter, the total amount appropriated for the aids under section 477A.013, subdivision 9, is the total amount of aids determined under that section for payment in the previous year.

Sec. 5. [GENERAL EDUCATION LEVY INCREASES.]

Except as provided in section 6, regardless of any other law to the contrary, the dollar amount contained in Minnesota Statutes, section 124A.23, subdivision 1, may not be increased with regard to fiscal year 1998 or any later fiscal year, either by an amendment of that section or by the enactment of, or change to, another statute or law, unless such increase is approved by a 60 percent vote in each house of the legislature.

Sec. 6. [GENERAL EDUCATION LEVY REDUCTION.]

Notwithstanding the provisions of Minnesota Statutes, section 124A.23, subdivision 1, the general education levy shall be reduced by $230,000,000 for taxes payable in 1998, $270,000,000 for taxes payable in 1999, and $270,000,000 for taxes payable in 2000. $193,000,000 in each of fiscal years 1999, 2000 and 2001 is appropriated from the property tax reform account established in article 12, section 3, to the commissioner of children, families, and learning to offset a portion of the costs of the levy reductions contained in this section. The remaining costs of the levy reductions contained in this section are appropriated from the general fund to the commissioner of children, families and learning.

Sec. 7. [REPEALER.]

Minnesota Statutes 1996, section 477A.011, subdivision 37, is repealed.

Sec. 8. [EFFECTIVE DATE.]

Sections 1 and 2 are effective for taxes payable in 1998 and thereafter, and for credit reimbursement payments to school districts in fiscal year 1999 and thereafter. Sections 3, 4, and 7 are effective for fiscal year 2000 and thereafter. Section 5 is effective the day following final enactment. Section 6 is effective for fiscal years 1999, 2000, and 2001.

Section 1. [275.0641] [BUDGET HEARINGS; NOTICE.]

determined by the commissioner of revenue, based on the governmental expenditure categories found in the state auditor's publications of revenues and expenditures for counties and cities. For purposes of this section, "taxing authority" includes all counties, home rule charter and statutory cities, school districts, and metropolitan special taxing districts as defined in section 275.065, subdivision 3. It excludes towns, all other special taxing districts, and the school districts deemed to be special taxing districts by section 275.065, subdivision 1. For a taxing authority located in two or more counties, the publication of prior year and anticipated current year expenditure data is to be made in each county in which the taxing authority is located.

Subd. 2. [REPORT OF FIRST BUDGET HEARING.] At the same time as expenditure data is published under subdivision 1, each taxing authority shall also publish the date, time, and location for its first budget hearing for the next year. If the first budget hearing for the next year is to be held prior to May 30 of the current levy year, the taxing authority shall publish the date, time, and location for the earliest budget hearing for the next year to be held after May 29 of the current levy year.

Subd. 3. [PUBLICATION.] (a) The publication required under this section must include all the information required under this section and must be at least one-eighth page in size of a standard-size or a tabloid-size newspaper. It must not be placed in the part of the newspaper where legal notices and classified advertisements appear, and it must be published in an official newspaper of general circulation in the taxing authority. The newspaper selected must be one of general interest and readership in the community, and not one of limited subject matter. The publication must appear in a newspaper that is published at least once per week. For purposes of this section, the metropolitan special taxing districts must publish only in the Minneapolis Star and Tribune and the Saint Paul Pioneer Press.

(b) The published item must be entitled: "NOTICE OF CURRENT BUDGETS AND BUDGET HEARINGS." The commissioner of revenue, subject to the approval of the chairs of the house and senate tax committees, will prescribe all other matters of form and content.

Subd. 4. [STATE AUDITOR'S DUTIES.] As an aid to counties and cities in seeing how their expenditure information is to be published, the state auditor shall provide by March 15 each year to each county and city a breakdown of the county's or city's expenditures by the service categories listed on the budget notice prescribed by the commissioner of revenue. The breakdown of expenditure data shall be for the most recent year available in the state auditor's database. In addition, the state auditor shall provide assistance to counties, cities, and metropolitan special taxing districts concerning the breakdown of their prior year and anticipated current year expenditure data that is to be published.

Subd. 5. [DUTIES OF COMMISSIONER OF CHILDREN, FAMILIES, AND LEARNING.] As an aid to school districts in seeing how their expenditure information is to be published, the commissioner of children, families, and learning shall provide by March 15 each year to each school district a breakdown of the school district's expenditures by the service categories listed on the budget notice prescribed by the commissioner of revenue. The breakdown of expenditure data shall be for the most recent year available in the department of children, families, and learning's database. In addition, the commissioner of children, families, and learning shall provide assistance to school districts concerning the breakdown of their prior year and anticipated current year expenditure data that is to be published.

Subd. 6. [COMMISSIONER OF REVENUE'S DUTIES.] The commissioner of revenue shall prescribe the form of the notice of current budgets and budget hearings to be published by each taxing authority. On or before March 1 of 1998 and of each year thereafter, the commissioner of revenue shall send to each taxing authority, and to the state auditor and the commissioner of children, families, and learning, the prescribed form of the notice to be used in the current year. On or before April 15 the commissioner of revenue shall supply each taxing authority other than a school district with the total number of households for that taxing authority based on the most recent household information available from the state demographer. In addition, on or before April 15 the commissioner of revenue shall supply each school district with the total number of pupils for that district for the most recent school year available from the department of children, families, and learning.

of revenue shall notify the county auditor. The decision of the commissioner is final. When fixing rates under section 275.08 for a taxing authority that has not complied with this section, the county auditor must use the taxing authority's previous year's levy, plus any additional amounts necessary to pay principal and interest on general obligation bonds of the taxing authority for which its taxing powers have been pledged if the bonds were issued before May 19, 1997.

Sec. 2. Minnesota Statutes 1996, section 275.065, subdivision 1, is amended to read:

Subdivision 1. [PROPOSED LEVY.] (a) Notwithstanding any law or charter to the contrary, on or before September 15, each taxing authority, other than a school district, shall adopt a proposed budget and shall certify to the county auditor the proposed or, in the case of a town, the final property tax levy for taxes payable in the following year.

(b) On or before September 30, each school district shall certify to the county auditor the proposed property tax levy for taxes payable in the following year. The school district may shall certify the proposed levy as:

(1) a specific dollar amount; or the state general education levy amount as prescribed under section 124A.23, subdivision 2; and

(2) an amount equal to the sum of the remaining school levies, or the maximum levy limitation certified by the commissioner of children, families, and learning to the county auditor according to section 124.918, subdivision 1, less the state general education levy amount under clause (1).

(c) If the board of estimate and taxation or any similar board that establishes maximum tax levies for taxing jurisdictions within a first class city certifies the maximum property tax levies for funds under its jurisdiction by charter to the county auditor by September 15, the city shall be deemed to have certified its levies for those taxing jurisdictions.

(d) For purposes of this section, "taxing authority" includes all home rule and statutory cities, towns, counties, school districts, and special taxing districts as defined in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 136D, joint powers boards established under sections 124.491 to 124.495, and common school districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing districts for purposes of this section.

Sec. 3. Minnesota Statutes 1996, section 275.065, is amended by adding a subdivision to read:

Subd. 1a. [LEVY; SHARED, MERGED, CONSOLIDATED SERVICES.] If two or more taxing authorities are in the process of negotiating an agreement for sharing, merging, or consolidating services between those taxing authorities at the time the proposed levy is to be certified under subdivision 1, each taxing authority involved in the negotiation shall certify its total proposed levy as provided in that subdivision, including a notification to the county auditor of the specific service involved in the agreement which is not yet finalized. The affected taxing authorities may amend their proposed levies under subdivision 1 until October 10 for levy amounts relating only to the specific service involved.

Sec. 4. Minnesota Statutes 1996, section 275.065, subdivision 3, is amended to read:

Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The county auditor shall prepare and the county treasurer shall deliver after November 10 and on or before November 24 17 each year, by first class mail to each taxpayer at the address listed on the county's current year's assessment roll, a notice of proposed property taxes and, in the case of a town, final property taxes.

(b) The commissioner of revenue shall prescribe the form of the notice.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for computing property taxes payable in the following year and for taxes payable in the current year; and, in the case of residential property, whether the property is classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the years to which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, school district excess referenda levy state general education tax, remaining school district levy, regional library district, if in existence, the total of the metropolitan special taxing districts as defined in paragraph (i) and the sum of the remaining special taxing districts, and as a total of the all taxing authorities, including all special taxing districts, the proposed or, for a town, final net tax on the property for taxes payable the following year and the actual tax for taxes payable the current year:

(i) the actual tax for taxes payable in the current year;

(ii) the tax change due to spending factors, defined as the proposed tax minus the constant spending tax amount;

(iii) the tax change due to other factors, defined as the constant spending tax amount minus the actual current year tax; and

(iv) the proposed tax amount.

In the case of a town or the state general education tax, the final tax shall also be its proposed tax. If a school district has certified under section 124A.03, subdivision 2, that a referendum will be held in the school district at the November general election, the county auditor must note next to the school district's proposed amount that a referendum is pending and that, if approved by the voters, the tax amount may be higher than shown on the notice. For the purposes of this subdivision, "school district excess referenda levy" means school district taxes for operating purposes approved at referendums, including those taxes based on net tax capacity as well as those based on market value. "School district excess referenda levy" does not include school district taxes for capital expenditures approved at referendums or school district taxes to pay for the debt service on bonds approved at referenda. In the case of the city of Minneapolis, the levy for the Minneapolis library board and the levy for Minneapolis park and recreation shall be listed separately from the remaining amount of the city's levy considered as special taxing district levies for the purposes of this subdivision. In the case of a parcel where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, the proposed tax levy on the captured value or the proposed tax levy on the tax capacity subject to the areawide tax must each be stated separately and not included in the sum of the special taxing districts. The reduction in the state general education tax for the parcel resulting from the general education homestead credit must also be shown; and

(3) the increase or decrease in the amounts in clause (2) from between the total taxes payable in the current year to and the total proposed or, for a town, final taxes payable the following year taxes, expressed as a dollar amount and as a percentage.

(e) The notice must clearly state that the proposed or final taxes do not include the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including bond referenda, school district levy referenda, and levy limit increase referenda;

(3) amounts necessary to pay cleanup or other costs due to a natural disaster occurring after the date the proposed taxes are certified;

(4) amounts necessary to pay tort judgments against the taxing authority that become final after the date the proposed taxes are certified; and

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the county treasurer to deliver the notice as required in this section does not invalidate the proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as nonhomestead and the homeowner provides satisfactory documentation to the county assessor that the property is owned and used as the owner's homestead, the assessor shall reclassify the property to homestead for taxes payable in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special taxing districts" means the following taxing districts in the seven-county metropolitan area that levy a property tax for any of the specified purposes listed below:

(1) metropolitan council under section 473.132, 473.167, 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;

(2) metropolitan airports commission under section 473.667, 473.671, or 473.672; and

(3) metropolitan mosquito control commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be included with the appropriate county's levy and shall be discussed at that county's public hearing.

(j) For taxes levied in 1996, payable in 1997 only, in the case of a statutory or home rule charter city or town that exercises the local levy option provided in section 473.388, subdivision 7, the notice of its proposed taxes may include a statement of the amount by which its proposed tax increase for taxes payable in 1997 is attributable to its exercise of that option, together with a statement that the levy of the metropolitan council was decreased by a similar amount because of the exercise of that option.

Sec. 5. Minnesota Statutes 1996, section 275.065, is amended by adding a subdivision to read:

Subd. 3a. [CONSTANT SPENDING LEVY AMOUNT.] (a) For purposes of this section, "constant spending levy amount" for a county, city, town, or special taxing district means the property tax levy that the taxing authority would need to levy so that the sum of its levy, including its fiscal disparities distribution levy under section 276A.06, subdivision 3, clause (a), or 473F.08, subdivision 3, clause (a), plus its property tax aid amounts would remain constant from the current year to the proposed year, taking into account the fiscal disparities distribution levy amounts and the property tax aid amounts that have been certified for the proposed year. For the purposes of this paragraph, property tax aids include homestead and agricultural credit aid under section 273.1398, subdivision 2, local government aid under section 477A.013, local performance aid under section 477A.05, county criminal justice aid under section 477A.0121, and family preservation aid under section 477A.0122.

and the proposed year's tax base, pupil units and aid amounts, and then adding the resulting amounts. In no case shall the constant spending levy amount be less than $0. The commissioner shall also determine the apportionment of the fiscal disparities distribution levy between the general education levy and the remaining school district levies. On or before September 30 annually, the commissioner must report to the county auditor each school district's constant spending state general education levy and its constant spending levy amount for the remaining school district levies.

Sec. 6. Minnesota Statutes 1996, section 275.065, subdivision 5a, is amended to read:

Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has a population of more than 2,500, county, a metropolitan special taxing district as defined in subdivision 3, paragraph (i), a regional library district established under section 134.201, or school district shall advertise in a newspaper a notice of its intent to adopt a budget and property tax levy or, in the case of a school district, to review its current budget and proposed for property taxes payable in the following year, at a public hearing. The notice must be published not less than two business days nor more than six business days before the hearing.

The advertisement must be at least one-eighth page in size of a standard-size or a tabloid-size newspaper. The advertisement must not be placed in the part of the newspaper where legal notices and classified advertisements appear. The advertisement must be published in an official newspaper of general circulation in the taxing authority. The newspaper selected must be one of general interest and readership in the community, and not one of limited subject matter. The advertisement must appear in a newspaper that is published at least once per week.

For purposes of this section, the metropolitan special taxing district's advertisement must only be published in the Minneapolis Star and Tribune and the Saint Paul Pioneer Press.

(b) The advertisement for metropolitan special taxing districts, and regional library districts must be in the following form, except that the notice for a school district may include references to the current budget in regard to proposed property taxes.

"NOTICE OF

PROPOSED PROPERTY TAXES

(City/County/School District/Metropolitan Special Taxing

District/Regional Library District) of . . . . . . . . .

The governing body of . . . . . . . . will soon hold budget hearings and vote on the property taxes for (city/county/metropolitan special taxing district/regional library district services that will be provided in 199_ (year)/school district services that will be provided in 199_ (year) and 199_ (year)).

All concerned citizens are invited to attend a public hearing and express their opinions on the proposed (city/county/school district/metropolitan special taxing district/regional library district) budget and property taxes, or in the case of a school district, its current budget and proposed property taxes, payable in the following year. The hearing will be held on (Month/Day/Year) at (Time) at (Location, Address)."

(c) The advertisement for cities and counties must be in the following form.

"NOTICE OF PROPOSED

TOTAL BUDGET AND PROPERTY TAXES

The (city/county) governing body or board of commissioners will hold a public hearing to discuss the budget and to vote on the amount of property taxes to collect for services the (city/county) will provide in (year).

(Year) Total Proposed (Year) Change from

Actual Budget Budget (Year)-(Year)

$ . . . . . . . $ . . . . . . . . . . %

TAXES: The property tax amounts below compare that portion of the current budget levied in property taxes in (city/county) for (year) with the property taxes the (city/county) proposes to collect in (year).

(Year) Property Proposed (Year) Change from

Taxes Property Taxes (Year)-(Year)

$ . . . . . . . $ . . . . . . . . . . %

All (city/county) residents are invited to attend the public hearing of the (city/county) to express your opinions on the budget and the proposed amount of (year) property taxes. The hearing will be held on:

(Month/Day/Year/Time) (Location/Address)

If the discussion of the budget cannot be completed, a time and place for continuing the discussion will be announced at the hearing. You are also invited to send your written comments to:

(City/County)

(Location/Address)"

(d) For purposes of this subdivision, the budget amounts listed on the advertisement mean:

(1) for cities, the total government fund expenditures, as defined by the state auditor under section 471.6965, less any expenditures for improvements or services that are specially assessed or charged under chapter 429, 430, 435, or the provisions of any other law or charter; and

(2) for counties, the total government fund expenditures, as defined by the state auditor under section 375.169, less any expenditures for direct payments to recipients or providers for the human service aids listed in section 273.1398, subdivision 1, paragraph (i).

(c) (e) A city with a population of over 500 but not more than 2,500 must advertise by posted notice as defined in section 645.12, subdivision 1. The advertisement must be posted at the time provided in paragraph (a). It must be in the form required in paragraph (b).

(d) (f) For purposes of this subdivision, the population of a city is the most recent population as determined by the state demographer under section 4A.02.

(e) (g) The commissioner of revenue, subject to the approval of the chairs of the house and senate tax committees, shall prescribe the form and format of the advertisement.

(f) For calendar year 1993, each taxing authority required to publish an advertisement must include on the advertisement a statement that information on the increases or decreases of the total budget, including employee and independent contractor compensation in the prior year, current year, and proposed budget year will be discussed at the hearing.

Sec. 7. Minnesota Statutes 1996, section 275.065, subdivision 6, is amended to read:

Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]

(a) For purposes of this section, the following terms shall have the meanings given:

(1) "Initial hearing" means the first and primary hearing held to discuss the taxing authority's proposed budget and proposed property tax levy for taxes payable in the following year, or, for school districts, the current budget and the proposed property tax levy for taxes payable in the following year.

(2) "Continuation hearing" means a hearing held to complete the initial hearing, if the initial hearing is not completed on its scheduled date.

(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final property tax levy, and, in the case of taxing authorities other than school districts, the final budget, for taxes payable in the following year.

(b) Between November 29 19 and December 20 10, the governing bodies of a city that has a population over 500, county, metropolitan special taxing districts as defined in subdivision 3, paragraph (i), and regional library districts shall each hold a an initial public hearing to discuss and seek public comment on its final budget and property tax levy for taxes payable in the following year, and the governing body of the school district shall hold a public hearing to review its current budget and proposed property tax levy for taxes payable in the following year. The metropolitan special taxing districts shall be required to hold only a single joint initial public hearing, the location of which will be determined by the affected metropolitan agencies.

(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than Saturday. No initial hearing may be held on a Sunday.

(d) At the initial hearing under this subdivision, the percentage increase in property taxes proposed by the taxing authority, if any, and the specific purposes for which property tax revenues are being increased must be discussed. During the discussion, the governing body shall hear comments regarding a proposed increase and explain the reasons for the proposed increase. The public shall be allowed to speak and to ask questions.

(e) If the initial hearing is not completed on its scheduled date, the taxing authority must announce, prior to adjournment of the hearing, the date, time, and place for the continuation of the hearing. The continuation hearing must be held at least five business days but no more than 14 business days after the initial hearing. A continuation hearing may not be held later than December 10. A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than Saturday. No continuation hearing may be held on a Sunday.

(f) The governing body of a county shall hold its initial hearing on the first Tuesday in December each year, and may hold additional initial hearings on other dates before December 10 if necessary for the convenience of county residents. If the county needs a continuation of its hearing, the continuation hearing shall be held on the second Tuesday in December even if that second Tuesday is after December 10.

(g) The metropolitan special taxing districts shall hold a joint initial public hearing on the first Monday of December. A continuation hearing, if necessary, shall be held on the second Monday of December.

(h) The county auditor shall provide for the coordination of initial and continuation hearing dates for all within the county to prevent conflicts under clauses (i) and (j).

(j) By August 20, the county auditor shall notify the clerks of the cities within the county of the dates on which regional library districts have elected to hold their initial and continuation hearings. At the time a city certifies its proposed levy under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and any continuation hearing. If a city does not certify these dates by September 15, the auditor will assign the initial and continuation hearing dates. The dates elected or assigned must not conflict with the initial and continuation hearing dates of the county, metropolitan special taxing districts, or regional library districts within which the city is located. This paragraph does not apply to cities of 500 population or less.

(k) The county initial hearing date and the city, metropolitan special taxing district, and regional library district initial hearing dates must be designated on the notices required under subdivision 3. The continuation hearing dates need not be stated on the notices.

(l) At a subsequent hearing, each county, school district, city over 500 population, and metropolitan special taxing district may amend its proposed property tax levy and must adopt a final property tax levy. Each county, city over 500 population, and metropolitan special taxing district may also amend its proposed budget and must adopt a final budget at the subsequent hearing. The final property tax levy must be adopted prior to adopting the final budget. A school district is not required to adopt its final budget at the subsequent hearing. The subsequent hearing of a taxing authority must be held on a date subsequent to the date of the taxing authority's initial public hearing, or subsequent to the date of its continuation hearing. If a continuation hearing is held, the subsequent hearing must be held either immediately following the continuation hearing or on a date subsequent to the continuation hearing. The subsequent hearing may be held at a regularly scheduled board or council meeting or at a special meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing of a taxing authority does not have to be coordinated by the county auditor to prevent a conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any other taxing authority. All subsequent hearings must be held prior to five working days after December 20 10 of the levy year. The date, time, and place of the subsequent hearing must be announced at the initial public hearing or at the continuation hearing.

(m) The property tax levy certified under section 275.07 by a city of any population, county, metropolitan special taxing district, regional library district, or school district must not exceed the proposed levy determined under subdivision 1, except by an amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to increase taxes under section 124.82, subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision 2, after the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the proposed levy was certified, if that amount is approved by the commissioner of revenue under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become final after the proposed levy was certified, if the amount is approved by the commissioner of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the commissioner of children, families, and learning or the commissioner of revenue after the proposed levy was certified; and

(7) the amount required under section 124.755.

At the hearing under this subdivision, the percentage increase in property taxes proposed by the taxing authority, if any, and the specific purposes for which property tax revenues are being increased must be discussed.

If the hearing is not completed on its scheduled date, the taxing authority must announce, prior to adjournment of the hearing, the date, time, and place for the continuation of the hearing. The continued hearing must be held at least five business days but no more than 14 business days after the original hearing.

The hearing must be held after 5:00 p.m. if scheduled on a day other than Saturday. No hearing may be held on a Sunday. The governing body of a county shall hold a hearing on the second Tuesday in December each year, and may hold additional hearings on other dates before December 20 if necessary for the convenience of county residents. If the county needs a continuation of its hearing, the continued hearing shall be held on the third Tuesday in December. If the third Tuesday in December falls on December 21, the county's continuation hearing shall be held on Monday, December 20. The county auditor shall provide for the coordination of hearing dates for all cities and school districts within the county.

The metropolitan special taxing districts shall hold a joint public hearing on the first Monday of December. A continuation hearing, if necessary, shall be held on the second Monday of December.

By August 10, each school board and the board of the regional library district shall certify to the county auditors of the counties in which the school district or regional library district is located the dates on which it elects to hold its hearings and any continuations. If a school board or regional library district does not certify the dates by August 10, the auditor will assign the hearing date. The dates elected or assigned must not conflict with the hearing dates of the county or the metropolitan special taxing districts. By August 20, the county auditor shall notify the clerks of the cities within the county of the dates on which school districts and regional library districts have elected to hold their hearings. At the time a city certifies its proposed levy under subdivision 1 it shall certify the dates on which it elects to hold its hearings and any continuations. For its initial hearing and for the subsequent hearing at which the final property tax levy will be adopted, the city must not select dates that conflict with the county hearing dates, metropolitan special taxing district dates, or with those elected by or assigned to the school districts or regional library district in which the city is located. For continuation hearings, the city may select dates that conflict with other taxing authorities' dates if the city deems it necessary.

The county hearing dates and the city, metropolitan special taxing district, regional library district, and school district hearing dates must be designated on the notices required under subdivision 3. The continuation dates need not be stated on the notices.

(n) This subdivision does not apply to towns, school districts, and special taxing districts other than regional library districts and metropolitan special taxing districts.

(o) Notwithstanding the requirements of this section, the employer is required to meet and negotiate over employee compensation as provided for in chapter 179A.

Sec. 8. Minnesota Statutes 1996, section 275.065, is amended by adding a subdivision to read:

Subd. 6b. [JOINT PUBLIC HEARINGS.] Notwithstanding any other provision of law, any city with a population of 10,000 and over, may conduct a more comprehensive public hearing than is contained in subdivision 6 by including a board member from the county, and the member or the member's designee of the metropolitan council for the district in which the city is located, if the city is in the metropolitan area, as defined in section 473.121, subdivision 2, at the city's public hearing. All provisions regarding the public hearings under subdivision 6 are applicable to the joint public hearings under this subdivision.

The primary purpose of the joint hearing is to discuss the city's budget and property tax levy. However, the county and metropolitan council representative, if the city is in the metropolitan area, should be prepared to answer questions relevant to its budget and levy and the effect that its levy has on the property owners in the city.

If a city conducts a hearing under this subdivision, this hearing is in lieu of the initial hearing required under subdivision 6. However, the city is still required to adopt its proposed property tax levy at a subsequent hearing as provided under subdivision 6. The hearings under this subdivision do not relieve a county or the metropolitan council of the requirement to hold its individual hearing under subdivision 6.

Sec. 9. Minnesota Statutes 1996, section 275.065, subdivision 8, is amended to read:

Subd. 8. [HEARING.] Notwithstanding any other provision of law, Ramsey county, the city of St. Paul, and independent school district No. 625 are authorized to and shall hold their initial public hearing jointly. The hearing must be held on the second first Tuesday of December each year. The advertisement required in subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the requirements of this section.

Ramsey county is authorized to hold an additional initial hearing or hearings as provided under this section, provided that any additional hearings must not conflict with the initial or continuation hearing dates of the other taxing districts. However, if Ramsey county elects not to hold such additional initial hearing or hearings, the joint initial hearing required by this subdivision must be held in a St. Paul location convenient to residents of Ramsey county.

Sec. 10. Minnesota Statutes 1996, section 275.065, is amended by adding a subdivision to read:

Subd. 9. [REVERSE REFERENDUM.] The reverse referendum procedure in this subdivision applies only in the case of a county, or a city that has a population of more than 1,000, that has adopted a property tax levy increase over the levy amount certified under section 275.07, subdivision 1, for the previous year.

If within 21 days after the public hearing and adoption of a levy under subdivision 6, a petition signed by voters equal in number to five percent of the votes cast in the county or city in the last general election requesting a referendum on the levy increase is filed with the county auditor, or the city clerk, the levy increase shall not be effective until it has been submitted to the voters at a special election to be held on the third Tuesday in January, and a majority of votes cast on the question of approving the levy increase are in the affirmative. The commissioner of revenue shall prepare the form of the question to be presented at the referendum, which shall reference only the amount of the property tax levy increase over the previous year.

The county or city shall notify the county auditor of the results of the referendum. If the majority of the votes cast on the question are in the affirmative, the levy adopted under subdivision 6 shall be certified to the county auditor under section 275.07, subdivision 1. If the majority of the votes cast on the question are in the negative, an amount equal to the preceding year's levy shall be certified to the county auditor for purposes of section 275.07, subdivision 1.

Notwithstanding section 275.61, any levy increase authorized under this section shall be levied against net tax capacity unless the levy required voter approval under another general or special law or any charter provisions.

This subdivision does not apply to any levy that has been approved by the voters under section 275.0646.

Sec. 11. Minnesota Statutes 1996, section 275.07, subdivision 1, is amended to read:

273.1398, subdivision 2, but shall be reduced by the county auditor by the aid received under section 273.1398, subdivision 3. If a city, town, county, school district, or special district fails to certify its levy by that date, its levy shall be the amount levied by it for the preceding year.

Sec. 12. Minnesota Statutes 1996, section 275.07, subdivision 4, is amended to read:

Subd. 4. [REPORT TO COMMISSIONER.] (a) On or before October 8 of each year, the county auditor shall report to the commissioner of revenue the proposed levy certified by local units of government under section 275.065, subdivision 1. If any taxing authorities have notified the county auditor that they are in the process of negotiating an agreement for sharing, merging, or consolidating services but that when the proposed levy was certified under section 275.065, subdivision 1a, the agreement was not yet finalized, the county auditor shall supply that information to the commissioner when filing the report under this section and shall recertify the affected levies as soon as practical after October 10.

(b) On or before January 15 of each year, the county auditor shall report to the commissioner of revenue the final levy certified by local units of government under subdivision 1.

(c) The levies must be reported in the manner prescribed by the commissioner. The reports must show a total levy and the amount of each special levy.

Sec. 13. Minnesota Statutes 1996, section 276.04, subdivision 2, is amended to read:

Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer shall provide for the printing of the tax statements. The commissioner of revenue shall prescribe the form of the property tax statement and its contents. The statement must contain a tabulated statement of the dollar amount due to each taxing authority and the state from the parcel of real property for which a particular tax statement is prepared. The dollar amounts due the county, state general education tax, the remaining school district amount, township or municipality, and the total of the metropolitan special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), school district excess referenda levy, remaining school district levy, and the total of other voter approved referenda levies based on market value under section 275.61 must be separately stated. The amounts due all other special taxing districts, if any, may be aggregated. For the purposes of this subdivision, "school district excess referenda levy" means school district taxes for operating purposes approved at referenda, including those taxes based on net tax capacity as well as those based on market value. "School district excess referenda levy" does not include school district taxes for capital expenditures approved at referendums or school district taxes to pay for the debt service on bonds approved at referenda. The amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar amount of any special assessments, may be rounded to the nearest even whole dollar. For purposes of this section whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, must also be listed on the tax statement. The statement shall include the following sentence sentences, printed in upper case letters in boldface print: "EVEN THOUGH THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES, IT DETERMINES THE AMOUNT OF THE GENERAL EDUCATION TAX LEVY. THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."

(b) The property tax statements for manufactured homes and sectional structures taxed as personal property shall contain the same information that is required on the tax statements for real property.

(c) Real and personal property tax statements must contain the following information in the order given in this paragraph. The information must contain the current year tax information in the right column with the corresponding information for the previous year in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's taxable market value after reductions under section 273.11, subdivisions 1a and 16;

(4) a total of the following aids:

(i) education aids payable under chapters 124 and 124A; and

(ii) local government aids for cities, towns, and counties under chapter 477A; and

(iii) disparity reduction aid under section 273.1398;

(5) for homestead residential and agricultural properties, the homestead and agricultural credit aid apportioned to the property. This amount is obtained by multiplying the total local tax rate by the difference between the property's gross and net tax capacities under section 273.13. This amount must be separately stated and identified as "homestead and agricultural credit." For purposes of comparison with the previous year's amount for the statement for taxes payable in 1990, the statement must show the homestead credit for taxes payable in 1989 under section 273.13, and the agricultural credit under section 273.132 for taxes payable in 1989;

(6) (5) any credits received under sections 273.119; 273.123; 273.135; 273.1382; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received under section 273.135 must be separately stated and identified as "taconite tax relief," and the amount of credit received under section 273.1382 must be separately stated and identified as general education homestead credit; and

(7) (6) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county agrees, a taxing district may include a notice with the property tax statement notifying taxpayers when the taxing district will begin its budget deliberations for the current year, and encouraging taxpayers to attend the hearings. If the county allows notices to be included in the envelope containing the property tax statement, and if more than one taxing district relative to a given property decides to include a notice with the tax statement, the county treasurer or auditor must coordinate the process and may combine the information on a single announcement.

The commissioner of revenue shall certify to the county auditor the actual or estimated aids enumerated in clauses (3) and clause (4) that local governments will receive in the following year. In the case of a county containing a city of the first class, for taxes levied in 1991, and for all counties for taxes levied in 1992 and thereafter, The commissioner must certify this amount by September 1 of each year.

Sec. 14. [EFFECTIVE DATE.]

Section 1 is effective for reports and notices beginning in 1998, and thereafter.

Sections 2 to 5 and 12 are effective for levies and notices for taxes payable in 1998, and thereafter.

Section 6 is effective for newspaper advertisements prepared in 1997 for taxes payable in 1998, and thereafter.

Sections 7 to 9 are effective for public hearings held in 1997, and thereafter.

Sections 10 and 11 are effective for taxes levied in 1997, payable in 1998, and thereafter.

Section 13 is effective for property tax statements prepared in 1998, and thereafter.

Section 1. [275.70] [LEVY LIMITATIONS; DEFINITIONS.]

Subd. 2. [IMPLICIT PRICE DEFLATOR.] "Implicit price deflator" means the implicit price deflator for government purchases of goods and services for state and local governments prepared by the bureau of economic analysis of the United States Department of Commerce for the 12-month period ending in June of the levy year.

Subd. 3. [LEVY LIMIT BASE.] The levy limit base for a local governmental unit for taxes levied in 1997 shall be equal to the sum of:

(1) the amount the local governmental unit levied in 1996, less any amount levied for debt, as reported to the department of revenue under section 275.62, subdivision 1, clause (1), and less any tax levied in 1996 against market value as provided for in section 275.61;

(2) the amount of aids the local governmental unit was certified to receive in calendar year 1997 under sections 477A.011 to 477A.03 before any reductions for state tax increment financing aid under section 273.1399, subdivision 5;

(3) the amount of homestead and agricultural credit aid the local governmental unit was certified to receive under section 273.1398 in calendar year 1997 before any reductions for tax increment financing aid under section 273.1399, subdivision 5;

(4) the amount of local performance aid the local governmental unit was certified to receive in calendar year 1997 under section 477A.05; and

(5) the amount of any payments certified to the local government unit in 1997 under sections 298.28 and 298.282.

If a governmental unit was not required to report under section 275.62 for taxes levied in 1997, the commissioner shall request information on levies used for debt from the local governmental unit and adjust its levy limit base accordingly.

Subd. 4. [LOCAL GOVERNMENTAL UNIT.] "Local governmental unit" means a county, or a statutory or home rule charter city.

Subd. 5. [POPULATION AND HOUSEHOLD ESTIMATES.] "Population" or "number of households" means the population or number of households for the local governmental unit as established by the last federal census, by a census taken under section 275.14, or by an estimate made by the metropolitan council or by the state demographer under section 4A.02, whichever is most recent as to the stated date of the count or estimate up to and including July 1 of the current levy year.

Subd. 6. [SPECIAL LEVIES.] "Special levies" means those portions of ad valorem taxes levied by a local governmental unit for the following purposes or in the following manner:

(1) to pay the costs of the principal and interest on bonded indebtedness or to reimburse for the amount of liquor store revenues used to pay the principal and interest due on municipal liquor store bonds in the year preceding the year for which the levy limit is calculated;

(2) to pay the costs of principal and interest on certificates of indebtedness issued for any corporate purpose except for the following:

(i) tax anticipation or aid anticipation certificates of indebtedness;

(ii) certificates of indebtedness issued under sections 298.28 and 298.282;

(iii) certificates of indebtedness used to fund current expenses or to pay the costs of extraordinary expenditures that result from a public emergency; or

(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an insufficiency in other revenue sources;

(4) to fund payments made to the Minnesota state armory building commission under section 193.145, subdivision 2, to retire the principal and interest on armory construction bonds;

(5) for counties only, to fund increased county costs associated with the reform of income maintenance programs enacted by the 1997 legislature including increased administration and program costs of the income maintenance programs and also related support services as they relate directly to the reform of income maintenance programs; and

(6) property taxes approved by voters which are levied against the referendum market value as provided under section 275.61.

Sec. 2. [275.71] [LEVY LIMITS.]

Subdivision 1. [LIMIT ON LEVIES.] Notwithstanding any other provision of law or municipal charter to the contrary which authorize ad valorem taxes in excess of the limits established by sections 275.70 to 275.74, the provision of this section shall apply to local governmental units for all purposes other than those for which special levies and special assessments are made.

Subd. 2. [ADJUSTED LEVY LIMIT BASE.] For taxes levied in 1997 and 1998, the adjusted levy limit base is equal to the levy limit base multiplied by;

(a) the sum of the levy limit base for the three years preceding the current levy year divided by three;

(b) one plus a percentage equal to the percentage growth in the implicit price deflator less one-half percent; and

(c) one plus a percentage equal to the percentage increase in number of households, if any, for the most recent 12-month period for which data is available.

Subd. 3. [PROPERTY TAX LEVY LIMIT.] For taxes levied in 1997 and 1998, the property tax levy limit for a local governmental unit is equal to its adjusted levy limit base determined under subdivision 2 plus any additional levy authorized under section 275.73, which is levied against net tax capacity, reduced by the sum of (a) the total amount of aids that the local governmental unit is certified to receive under sections 477A.011 to 477A.014, (b) homestead and agricultural aids it is certified to receive under section 273.1398, (c) local performance aid it is certified to receive under section 477A.05, and (d) taconite aids under sections 298.28 and 298.282 including any aid which was required to be placed in a special fund for expenditure in the next succeeding year.

Subd. 4. [LEVIES IN EXCESS OF LEVY LIMITS.] If the levy made by a city exceeds the levy limit provided in sections 275.70 to 275.74, except when the excess levy is due to the rounding of the rate in accordance with section 275.28, the county auditor shall only extend the amount of taxes permitted under sections 275.70 to 275.74, as provided for in section 275.16.

Sec. 3. [275.72] [LEVY LIMIT ADJUSTMENTS FOR CONSOLIDATION AND ANNEXATION.]

Subdivision 1. [ADJUSTMENTS FOR CONSOLIDATION.] If all of the area included in two or more local governmental units is consolidated, merged, or otherwise combined to constitute a single governmental unit, the levy limit base for the resulting governmental unit in the first levy year in which the consolidation is effective shall be equal to (a) the highest tax rate in any of the merging governmental units in the previous year multiplied by the net tax capacity of all the merging governmental units in the previous year, minus (b) the sum of all levies in the merging governmental units in the previous year that qualify as special levies under section 275.70, subdivision 3.

Subd. 3. [TRANSFER OF GOVERNMENTAL FUNCTIONS.] If a function or service of one local governmental unit is transferred to another local governmental unit, the levy limits established under section 275.71 shall be adjusted by the commissioner of revenue in such manner so as to fairly and equitably reflect the reduced or increased property tax burden resulting from the transfer. The aggregate of the adjusted limitations shall not exceed the aggregate of the limitations prior to adjustment.

Subd. 4. [EFFECTIVE DATE FOR LEVY LIMITS PURPOSES.] Annexations, mergers, and shifts in services and functional responsibilities that are effective by June 30 of the levy year are included in the calculation of the levy limit for that levy year. Annexations, mergers, and shifts in services and functional responsibilities that are effective after June 30 of a levy year are not included in the calculation of the levy limit until the subsequent levy year.

Sec. 4. [275.73] [ELECTIONS FOR ADDITIONAL LEVIES.]

Subdivision 1. [ADDITIONAL LEVY AUTHORIZATION.] Notwithstanding the provisions of sections 275.70 to 275.72, but subject to other law or charter provisions establishing other limitations on the amount of property taxes a local governmental unit may levy, a local governmental unit may levy an additional levy in any amount which is approved by the majority of voters of the governmental unit voting on the question at a general or special election. Notwithstanding section 275.61, any levy authorized under this section shall be levied against net tax capacity unless the levy required voter approval under another general or special law or any charter provisions. When the governing body of the local governmental unit resolves to increase the levy pursuant to this section, it shall provide for submission of the proposition of an additional levy at a general or special election. Notice of the election shall be given in the manner required by law. The notice shall state the purpose and the maximum yearly amount of the additional levy.

Subd. 2. [LEVY EFFECTIVE DATE.] An additional levy approved under subdivision 1 at a general or special election held prior to October 1 in any levy year may be levied in that same levy year and subsequent levy years. An additional levy approved under subdivision 1 at a general or special election held after September 30 in any levy year shall not be levied in that same levy but may be levied in subsequent levy years.

Sec. 5. [275.74] [STATE REGULATION OF LEVIES.]

(a) The commissioner of revenue shall make all necessary calculations for determining levy limits for local governmental units and notify the affected governmental units of their levy limits directly by August 1 of each levy year. In addition, the commissioner of revenue shall notify all county auditors of the levy limits imposed on local governmental units located within their boundaries so that they may fix the levies as required in section 275.16. The local governmental units shall provide the commissioner of revenue with all information that the commissioner deems necessary to make the calculations provided for in sections 275.70 to 275.73.

(b) Counties shall report annually to the commissioner of revenue on the purposes for which the special levy authorized under section 275.70, subdivision 5, clause (5), is used. The report shall be made on a form developed by the commissioner, in consultation with the commissioner of human services, and provide information on the costs to the county for the relevant programs both before and after the reform of the income maintenance programs enacted by the 1997 legislature.

Sec. 6. [EFFECTIVE DATE.]

This article is effective for taxes levied in 1997, 1998, and 1999, payable in 1998, 1999, and 2000."

Renumber the articles in sequence

Amend the title accordingly

The question was taken on the Abrams et al amendment and the roll was called. There were 63 yeas and 69 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Koppendrayer	Mulder	Rostberg	Tompkins
Anderson, B.	Erhardt	Kraus	Ness	Seagren	Tuma
Bettermann	Finseth	Krinkie	Nornes	Seifert	Van Dellen
Bishop	Goodno	Kuisle	Olson, M.	Smith	Weaver
Boudreau	Gunther	Larsen	Osskopp	Stanek	Westfall
Bradley	Haas	Leppik	Ozment	Stang	Westrom
Broecker	Harder	Lindner	Paulsen	Sviggum	Wolf
Commers	Holsten	Macklin	Pawlenty	Swenson, D.	Workman
Daggett	Kielkucki	Mares	Reuter	Swenson, H.
Davids	Knight	McElroy	Rhodes	Sykora
Dehler	Knoblach	Molnau	Rifenberg	Tingelstad

Those who voted in the negative were:

Anderson, I.	Folliard	Johnson, R.	Mariani	Otremba	Solberg
Bakk	Garcia	Juhnke	Marko	Paymar	Tomassoni
Biernat	Greenfield	Kahn	McCollum	Pelowski	Trimble
Carlson	Greiling	Kalis	McGuire	Peterson	Tunheim
Chaudhary	Hasskamp	Kelso	Milbert	Pugh	Wagenius
Clark	Hausman	Kinkel	Mullery	Rest	Wejcman
Dawkins	Hilty	Koskinen	Munger	Rukavina	Wenzel
Delmont	Huntley	Kubly	Murphy	Schumacher	Winter
Dorn	Jaros	Leighton	Olson, E.	Sekhon	Spk. Carruthers
Entenza	Jefferson	Lieder	Opatz	Skare
Evans	Jennings	Long	Orfield	Skoglund
Farrell	Johnson, A.	Luther	Osthoff	Slawik

The motion did not prevail and the amendment was not adopted.

Rest, Macklin and Erhardt moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 19, line 35, after "percent" insert "for taxes payable in 1997, 2.25 percent for taxes payable in 1998, and two percent for taxes payable in 1999 and thereafter"

Page 26, line 17, delete "and"

Page 26, after line 17, insert:

"(vi) 0.25 percent of class 4c noncommercial seasonal recreational residential property over $72,000; and"

Page 26, line 18, delete "(vi)" and insert "(vii)"

Page 26, after line 27, insert:

"(c) For aids payable in 1999, the tax base differential is 0.25 percent of the assessment year 1997 taxable market value of class 4c noncommercial seasonal recreational residential property over $80,000."

The question was taken on the Rest et al amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 65 yeas and 65 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Koppendrayer	Molnau	Rhodes	Swenson, H.
Anderson, B.	Erhardt	Kraus	Mulder	Rifenberg	Sykora
Bettermann	Evans	Krinkie	Ness	Rostberg	Tingelstad
Biernat	Goodno	Larsen	Nornes	Seagren	Tompkins
Boudreau	Greiling	Leppik	Olson, M.	Seifert	Tuma
Broecker	Gunther	Lindner	Osthoff	Skoglund	Van Dellen
Carlson	Haas	Macklin	Ozment	Smith	Weaver
Chaudhary	Johnson, A.	Mares	Paulsen	Stanek	Westrom
Commers	Kielkucki	McElroy	Pawlenty	Stang	Wolf
Davids	Knight	McGuire	Rest	Sviggum	Workman
Dehler	Knoblach	Milbert	Reuter	Swenson, D.

Those who voted in the negative were:

Anderson, I.	Finseth	Jennings	Lieder	Osskopp	Solberg
Bakk	Folliard	Johnson, R.	Long	Otremba	Tomassoni
Bishop	Garcia	Juhnke	Luther	Paymar	Trimble
Bradley	Greenfield	Kahn	Marko	Pelowski	Tunheim
Clark	Harder	Kalis	McCollum	Peterson	Wagenius
Daggett	Hasskamp	Kelso	Mullery	Pugh	Wejcman
Dawkins	Hausman	Kinkel	Munger	Rukavina	Wenzel
Delmont	Hilty	Koskinen	Murphy	Schumacher	Westfall
Dorn	Huntley	Kubly	Olson, E.	Sekhon	Winter
Entenza	Jaros	Kuisle	Opatz	Skare	Spk. Carruthers
Farrell	Jefferson	Leighton	Orfield	Slawik

The motion did not prevail and the amendment was not adopted.

Milbert and Abrams moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 156, line 24, after "county" insert "with a population of more than 50,000" and delete "1,000" and insert "10,000"

Page 156, line 35, delete "five" and insert "ten"

The motion prevailed and the amendment was adopted.

Winter; Kalis; Goodno; Rest; Tunheim; Davids; Koskinen; Peterson; Dorn; Daggett; Weaver; Munger; Johnson, A.; Leighton; Tomassoni; Rukavina; Pelowski; Schumacher; Lieder; Jaros; Bakk; Skare; Carlson; Finseth; Hilty; Wagenius; Kuisle; Westfall; Juhnke; Johnson, R.; Skoglund; Kubly and Olson, E., moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 140, line 6, reinstate the stricken "24" and delete "17"

Page 149, line 33, delete "ten" and insert "14"

Page 149, line 35, delete "10" and insert "20"

Page 150, line 4, delete "first" and insert "second"

Page 150, line 5, delete "10" and insert "20"

Page 150, line 8, delete "second" and insert "third"

Page 150, line 8, delete "even if"

Page 150, line 9, delete "that second Tuesday is after December 10"

Page 150, line 9, after the period insert "If the third Tuesday in December falls on December 21, the county's continuation hearing shall be held on Monday, December 20."

Page 151, line 34, reinstate "20" and delete "10"

Page 156, line 8, reinstate the stricken "second"

Page 156, line 9, delete "first"

Pages 156 to 158, delete sections 9 and 10

Page 161, delete lines 23 and 24

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Winter et al amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 78 yeas and 53 nays as follows:

Those who voted in the affirmative were:

Bakk	Evans	Huntley	Leighton	Osthoff	Slawik
Biernat	Finseth	Jaros	Lieder	Ozment	Solberg
Boudreau	Folliard	Jefferson	Long	Paymar	Swenson, D.
Broecker	Garcia	Johnson, A.	Mares	Pelowski	Tomassoni
Carlson	Goodno	Johnson, R.	Mariani	Peterson	Tompkins
Clark	Greenfield	Juhnke	Marko	Rest	Tuma
Daggett	Greiling	Kahn	McGuire	Reuter	Tunheim
Davids	Gunther	Kalis	Munger	Rhodes	Wagenius
Dawkins	Haas	Kinkel	Murphy	Rukavina	Weaver
Delmont	Harder	Koskinen	Ness	Schumacher	Wejcman
Dempsey	Hasskamp	Kubly	Nornes	Sekhon	Westfall
Dorn	Hausman	Kuisle	Olson, E.	Skare	Winter
Entenza	Hilty	Larsen	Orfield	Skoglund	Workman

Those who voted in the negative were:

Abrams	Farrell	Krinkie	Mulder	Rifenberg	Sykora
Anderson, B.	Holsten	Leppik	Mullery	Rostberg	Tingelstad
Bettermann	Jennings	Lindner	Olson, M.	Seagren	Trimble
Bishop	Kelso	Luther	Opatz	Seifert	Van Dellen
Bradley	Kielkucki	Macklin	Osskopp	Smith	Wenzel
Chaudhary	Knight	McCollum	Otremba	Stanek	Westrom
Commers	Knoblach	McElroy	Paulsen	Stang	Wolf
Dehler	Koppendrayer	Milbert	Pawlenty	Sviggum	Spk. Carruthers
Erhardt	Kraus	Molnau	Pugh	Swenson, H.

The motion prevailed and the amendment was adopted.

Pawlenty moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 237, after line 35, insert:

"Sec. 9. Minnesota Statutes 1996, section 290.06, subdivision 2c, is amended to read:

Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, AND TRUSTS.] (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates:

(1) On the first $19,910, 6 5.5 percent;

(2) On all over $19,910, but not over $79,120, 8 percent;

(3) On all over $79,120, 8.5 percent.

Married individuals filing separate returns, estates, and trusts must compute their income tax by applying the above rates to their taxable income, except that the income brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be computed by applying to taxable net income the following schedule of rates:

(1) On the first $13,620, 6 5.5 percent;

(2) On all over $13,620, but not over $44,750, 8 percent;

(3) On all over $44,750, 8.5 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code must be computed by applying to taxable net income the following schedule of rates:

(1) On the first $16,770, 6 5.5 percent;

(2) On all over $16,770, but not over $67,390, 8 percent;

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax of any individual taxpayer whose taxable net income for the taxable year is less than an amount determined by the commissioner must be computed in accordance with tables prepared and issued by the commissioner of revenue based on income brackets of not more than $100. The amount of tax for each bracket shall be computed at the rates set forth in this subdivision, provided that the commissioner may disregard a fractional part of a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute the individual's Minnesota income tax as provided in this subdivision. After the application of the nonrefundable credits provided in this chapter, the tax liability must then be multiplied by a fraction in which:

(1) The numerator is the individual's Minnesota source federal adjusted gross income as defined in section 62 of the Internal Revenue Code increased by the addition required for interest income from non-Minnesota state and municipal bonds under section 290.01, subdivision 19a, clause (1), after applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in section 62 of the Internal Revenue Code of 1986, as amended through April 15, 1995, increased by the addition required for interest income from non-Minnesota state and municipal bonds under section 290.01, subdivision 19a, clause (1)."

Page 247, line 22, delete "10" and insert "11"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Pawlenty amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 64 yeas and 66 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Knoblach	Molnau	Rifenberg	Tingelstad
Anderson, B.	Erhardt	Koppendrayer	Mulder	Rostberg	Tompkins
Bettermann	Farrell	Kraus	Ness	Seagren	Tuma
Bishop	Finseth	Krinkie	Nornes	Seifert	Van Dellen
Boudreau	Goodno	Kuisle	Olson, M.	Smith	Weaver
Bradley	Gunther	Larsen	Osskopp	Stanek	Westfall
Broecker	Haas	Leppik	Ozment	Stang	Westrom
Commers	Harder	Lindner	Paulsen	Sviggum	Wolf
Daggett	Holsten	Macklin	Pawlenty	Swenson, D.	Workman
Davids	Kielkucki	Mares	Reuter	Swenson, H.
Dehler	Knight	McElroy	Rhodes	Sykora

Those who voted in the negative were:

Anderson, I.	Garcia	Johnson, R.	Mariani	Osthoff	Skoglund
Bakk	Greenfield	Juhnke	Marko	Otremba	Slawik
Journal of the House - 47th Day - Top of Page 3168
Biernat	Greiling	Kahn	McCollum	Paymar	Solberg
Carlson	Hasskamp	Kalis	McGuire	Pelowski	Tomassoni
Chaudhary	Hausman	Kinkel	Milbert	Peterson	Trimble
Clark	Hilty	Koskinen	Mullery	Pugh	Tunheim
Dawkins	Huntley	Kubly	Munger	Rest	Wagenius
Delmont	Jaros	Leighton	Murphy	Rukavina	Wejcman
Dorn	Jefferson	Lieder	Olson, E.	Schumacher	Wenzel
Evans	Jennings	Long	Opatz	Sekhon	Winter
Folliard	Johnson, A.	Luther	Orfield	Skare	Spk. Carruthers

The motion did not prevail and the amendment was not adopted.

Bishop moved that the vote whereby the Rest et al amendment to H. F. No. 2163, the first engrossment, as amended, which was not adopted earlier today be now reconsidered. The motion prevailed.

The Rest, Macklin and Erhardt amendment to H. F. No. 2163, the first engrossment, as amended, was again reported to the House as follows:

Page 19, line 35, after "percent" insert "for taxes payable in 1997, 2.25 percent for taxes payable in 1998, and two percent for taxes payable in 1999 and thereafter"

Page 26, line 17, delete "and"

Page 26, after line 17, insert:

"(vi) 0.25 percent of class 4c noncommercial seasonal recreational residential property over $72,000; and"

Page 26, line 18, delete "(vi)" and insert "(vii)"

Page 26, after line 27, insert:

"(c) For aids payable in 1999, the tax base differential is 0.25 percent of the assessment year 1997 taxable market value of class 4c noncommercial seasonal recreational residential property over $80,000."

A roll call was requested and properly seconded.

The question was taken on the Rest et al amendment and the roll was called. There were 83 yeas and 50 nays as follows:

Those who voted in the affirmative were:

Abrams	Delmont	Kielkucki	McElroy	Peterson	Sviggum
Anderson, B.	Dempsey	Knight	McGuire	Rest	Swenson, D.
Bettermann	Entenza	Knoblach	Milbert	Reuter	Swenson, H.
Biernat	Erhardt	Koppendrayer	Molnau	Rhodes	Sykora
Bishop	Evans	Koskinen	Mulder	Rifenberg	Tingelstad
Boudreau	Folliard	Kraus	Mullery	Rostberg	Tompkins
Bradley	Goodno	Krinkie	Ness	Schumacher	Tuma
Broecker	Greiling	Kubly	Nornes	Seagren	Van Dellen
Carlson	Gunther	Kuisle	Olson, M.	Seifert	Weaver
Chaudhary	Haas	Larsen	Osskopp	Skoglund	Westfall
Commers	Harder	Leppik	Osthoff	Slawik	Westrom
Daggett	Holsten	Lindner	Ozment	Smith	Wolf
Davids	Johnson, A.	Macklin	Paulsen	Stanek	Workman
Dehler	Juhnke	Mares	Pawlenty	Stang

Those who voted in the negative were:

Anderson, I.	Hasskamp	Kalis	Marko	Pelowski	Wagenius
Bakk	Hausman	Kelso	McCollum	Pugh	Wejcman
Clark	Hilty	Kinkel	Munger	Rukavina	Wenzel
Dawkins	Huntley	Leighton	Murphy	Sekhon	Winter
Dorn	Jaros	Lieder	Olson, E.	Skare	Spk. Carruthers
Farrell	Jefferson	Long	Opatz	Solberg
Finseth	Jennings	Luther	Orfield	Tomassoni
Garcia	Johnson, R.	Mahon	Otremba	Trimble
Greenfield	Kahn	Mariani	Paymar	Tunheim

The motion prevailed and the amendment was adopted.

Trimble, Osthoff and Farrell moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 7, lines 24 to 29, delete the new language and restore the stricken language

Page 13, lines 32 and 33, delete the new language and restore the stricken language

A roll call was requested and properly seconded.

The question was taken on the Trimble et al amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 22 yeas and 107 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Hasskamp	Kahn	Mullery	Paymar	Tomassoni
Bakk	Hausman	McCollum	Munger	Pugh	Trimble
Farrell	Jaros	McGuire	Osskopp	Rukavina
Greiling	Jefferson	Milbert	Osthoff	Sviggum

Those who voted in the negative were:

Abrams	Erhardt	Kielkucki	Mahon	Pelowski	Swenson, D.
Anderson, B.	Evans	Kinkel	Mares	Peterson	Swenson, H.
Bettermann	Finseth	Knight	Mariani	Rest	Sykora
Biernat	Folliard	Knoblach	Marko	Reuter	Tingelstad
Bishop	Garcia	Koppendrayer	McElroy	Rhodes	Tuma
Boudreau	Goodno	Koskinen	Molnau	Rifenberg	Tunheim
Bradley	Greenfield	Kraus	Mulder	Rostberg	Van Dellen
Broecker	Gunther	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Haas	Kubly	Ness	Seagren	Weaver
Chaudhary	Harder	Kuisle	Nornes	Seifert	Wejcman
Commers	Hilty	Larsen	Olson, E.	Sekhon	Wenzel
Daggett	Holsten	Leighton	Olson, M.	Skare	Westfall
Davids	Huntley	Leppik	Opatz	Skoglund	Westrom
Dawkins	Jennings	Lieder	Orfield	Slawik	Winter
Dehler	Johnson, A.	Lindner	Otremba	Smith	Wolf
Delmont	Johnson, R.	Long	Ozment	Solberg	Workman
Dempsey	Juhnke	Luther	Paulsen	Stanek	Spk. Carruthers
Dorn	Kalis	Macklin	Pawlenty	Stang

The motion did not prevail and the amendment was not adopted.

Koppendrayer; Kelso; Hilty; Sviggum; Lieder; Olson, E., and Murphy moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 405, after line 8, insert:

"Sec. 8. Minnesota Statutes 1996, section 270.60, is amended by adding a subdivision to read:

Subd. 4. [PAYMENTS TO COUNTIES.] (a) The commissioner shall pay to a county in which an Indian gaming casino is located ten percent of the state share of all taxes generated from activities on reservations and collected under a tax agreement under this section with the tribal government for the reservation located in the county. If the tribe has casinos located in more than one county, the payment must be divided equally among the counties in which the casinos are located.

(b) If a tribe agrees in writing with a county in which an Indian gaming casino is located to make cash payments to the county, the commissioner shall pay an additional amount to the county equal to the tribal payment. The total amount paid under this paragraph and paragraph (a) must not exceed 15 percent of the state share of the tax generated under the agreement for a year. A county that has entered into a written agreement with a tribe shall provide to the commissioner a copy of the agreement plus proof of payments made by the tribe under the agreement. The commissioner shall not make any additional payments under this paragraph unless the required documents are received by the commissioner by January 31 of the year following the year the payments are made by the tribe.

(c) The commissioner shall make the payments required under this subdivision by February 28 of the year following the year the taxes are collected.

(d) The amounts necessary to make the payments authorized by this subdivision are appropriated from the general fund to the commissioner."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Koppendrayer et al amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 77 yeas and 55 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Knoblach	Mariani	Pawlenty	Sviggum
Anderson, B.	Finseth	Koppendrayer	McElroy	Rest	Swenson, H.
Bettermann	Goodno	Kraus	Molnau	Reuter	Sykora
Biernat	Gunther	Krinkie	Mulder	Rhodes	Tingelstad
Bishop	Haas	Kubly	Murphy	Rifenberg	Tompkins
Boudreau	Harder	Kuisle	Ness	Rostberg	Tuma
Bradley	Hilty	Larsen	Nornes	Schumacher	Van Dellen
Broecker	Holsten	Leppik	Olson, E.	Seagren	Weaver
Journal of the House - 47th Day - Top of Page 3171
Commers	Jennings	Lieder	Olson, M.	Seifert	Westfall
Daggett	Kelso	Lindner	Osskopp	Smith	Westrom
Davids	Kielkucki	Macklin	Otremba	Solberg	Wolf
Dehler	Kinkel	Mahon	Ozment	Stanek	Workman
Dempsey	Knight	Mares	Paulsen	Stang

Those who voted in the negative were:

Anderson, I.	Farrell	Johnson, A.	McCollum	Peterson	Wagenius
Bakk	Folliard	Johnson, R.	McGuire	Pugh	Wejcman
Carlson	Garcia	Juhnke	Milbert	Rukavina	Wenzel
Chaudhary	Greenfield	Kahn	Mullery	Sekhon	Winter
Clark	Greiling	Kalis	Munger	Skare	Spk. Carruthers
Dawkins	Hasskamp	Koskinen	Opatz	Skoglund
Delmont	Hausman	Leighton	Orfield	Slawik
Dorn	Huntley	Long	Osthoff	Tomassoni
Entenza	Jaros	Luther	Paymar	Trimble
Evans	Jefferson	Marko	Pelowski	Tunheim

The motion prevailed and the amendment was adopted.

Reuter moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 46, after line 35, insert:

"Sec. 29. [YEAR 2000 READY.]

Any computer software or hardware that is purchased by the state or a political subdivision with money appropriated in this bill must be year 2000 ready."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

McElroy moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 401, after line 16, insert:

"Section 1. [3.99] [TAX INCREASE; VOTE REQUIREMENTS.]

Passage of a law that increases the general rate or expands the taxable base of a state tax on income or sales or increases the general education levy requires the vote of three-fifths of the members of each house of the legislature. Passage of a law that creates a new tax of statewide applicability also requires the vote of three-fifths of the members of each house of the legislature."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The question was taken on the McElroy amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 59 yeas and 70 nays as follows:

Those who voted in the affirmative were:

Abrams	Dehler	Kraus	Mulder	Rostberg	Tingelstad
Anderson, B.	Erhardt	Krinkie	Nornes	Seagren	Tompkins
Bettermann	Finseth	Kuisle	Olson, M.	Seifert	Tuma
Bishop	Gunther	Larsen	Osskopp	Smith	Van Dellen
Boudreau	Haas	Leppik	Ozment	Stanek	Weaver
Bradley	Harder	Lindner	Paulsen	Stang	Westfall
Broecker	Holsten	Macklin	Pawlenty	Sviggum	Westrom
Commers	Kielkucki	Mares	Reuter	Swenson, D.	Wolf
Daggett	Knight	McElroy	Rhodes	Swenson, H.	Workman
Davids	Koppendrayer	Molnau	Rifenberg	Sykora

Those who voted in the negative were:

Anderson, I.	Folliard	Johnson, R.	Mahon	Orfield	Slawik
Biernat	Garcia	Juhnke	Mariani	Osthoff	Solberg
Carlson	Goodno	Kahn	Marko	Otremba	Tomassoni
Chaudhary	Greenfield	Kalis	McCollum	Paymar	Trimble
Clark	Greiling	Kelso	McGuire	Pelowski	Tunheim
Dawkins	Hasskamp	Kinkel	Milbert	Peterson	Wagenius
Delmont	Hausman	Knoblach	Mullery	Pugh	Wejcman
Dempsey	Hilty	Kubly	Munger	Rest	Wenzel
Dorn	Huntley	Leighton	Murphy	Schumacher	Winter
Entenza	Jefferson	Lieder	Ness	Sekhon	Spk. Carruthers
Evans	Jennings	Long	Olson, E.	Skare
Farrell	Johnson, A.	Luther	Opatz	Skoglund

The motion did not prevail and the amendment was not adopted.

Bettermann moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 403, delete section 4

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Bettermann amendment and the roll was called.

Marko moved that those not voting be excused from voting. The motion prevailed.

There were 50 yeas and 81 nays as follows:

Those who voted in the affirmative were:

Journal of the House - 47th Day - Top of Page 3173
Abrams	Davids	Knoblach	Mulder	Seifert	Van Dellen
Anderson, B.	Erhardt	Koppendrayer	Ness	Stang	Weaver
Bettermann	Finseth	Kraus	Nornes	Sviggum	Westfall
Bishop	Goodno	Krinkie	Olson, M.	Swenson, D.	Westrom
Boudreau	Gunther	Kuisle	Paulsen	Swenson, H.	Workman
Bradley	Haas	Leppik	Pawlenty	Sykora
Broecker	Harder	Lindner	Reuter	Tingelstad
Commers	Holsten	Macklin	Rifenberg	Tompkins
Daggett	Kielkucki	Molnau	Seagren	Tuma

Those who voted in the negative were:

Anderson, I.	Folliard	Kahn	McCollum	Paymar	Solberg
Bakk	Garcia	Kalis	McElroy	Pelowski	Stanek
Biernat	Greenfield	Kinkel	McGuire	Peterson	Tomassoni
Carlson	Greiling	Knight	Milbert	Pugh	Trimble
Chaudhary	Hasskamp	Koskinen	Mullery	Rest	Tunheim
Clark	Hausman	Kubly	Munger	Rhodes	Wagenius
Dawkins	Hilty	Larsen	Murphy	Rostberg	Wejcman
Dehler	Huntley	Leighton	Olson, E.	Rukavina	Wenzel
Delmont	Jaros	Lieder	Opatz	Schumacher	Winter
Dempsey	Jefferson	Long	Orfield	Sekhon	Wolf
Dorn	Jennings	Luther	Osskopp	Skare	Spk. Carruthers
Entenza	Johnson, A.	Mahon	Osthoff	Skoglund
Evans	Johnson, R.	Mariani	Otremba	Slawik
Farrell	Juhnke	Marko	Ozment	Smith

The motion did not prevail and the amendment was not adopted.

Sviggum moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 233, line 10, delete "and"

Page 233, line 14, after "amended" insert "; and

(11) an amount equal to $625 for each personal and dependent exemption, as defined in sections 151 and 152 of the Internal Revenue Code, allowed on the taxpayer's federal income tax return"

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 63 yeas and 69 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Knoblach	Mulder	Rostberg	Tompkins
Anderson, B.	Erhardt	Koppendrayer	Ness	Seagren	Tuma
Bettermann	Farrell	Krinkie	Nornes	Seifert	Van Dellen
Bishop	Finseth	Kuisle	Olson, M.	Smith	Weaver
Journal of the House - 47th Day - Top of Page 3174
Boudreau	Goodno	Larsen	Osskopp	Stanek	Westfall
Bradley	Gunther	Leppik	Ozment	Stang	Westrom
Broecker	Haas	Lindner	Paulsen	Sviggum	Wolf
Commers	Harder	Macklin	Pawlenty	Swenson, D.	Workman
Daggett	Holsten	Mares	Reuter	Swenson, H.
Davids	Kielkucki	McElroy	Rhodes	Sykora
Dehler	Knight	Molnau	Rifenberg	Tingelstad

Those who voted in the negative were:

Anderson, I.	Garcia	Juhnke	Mahon	Osthoff	Solberg
Bakk	Greenfield	Kahn	Mariani	Otremba	Tomassoni
Biernat	Greiling	Kalis	Marko	Pelowski	Trimble
Carlson	Hasskamp	Kelso	McCollum	Peterson	Tunheim
Chaudhary	Hausman	Kinkel	McGuire	Pugh	Wagenius
Clark	Hilty	Koskinen	Milbert	Rest	Wejcman
Dawkins	Huntley	Kraus	Mullery	Rukavina	Wenzel
Delmont	Jaros	Kubly	Munger	Schumacher	Winter
Dorn	Jefferson	Leighton	Murphy	Sekhon	Spk. Carruthers
Entenza	Jennings	Lieder	Olson, E.	Skare
Evans	Johnson, A.	Long	Opatz	Skoglund
Folliard	Johnson, R.	Luther	Orfield	Slawik

The motion did not prevail and the amendment was not adopted.

Sviggum offered an amendment to H. F. No. 2163, the first engrossment, as amended

Long requested a division of the Sviggum amendment to H. F. No. 2163, the first engrossment, as amended.

The first portion of the Sviggum amendment to H. F. No. 2163, the first engrossment, as amended, reads as follows:

Page 419, after line 1, insert:

"Sec. 35. [REPEALER.]

Minnesota Statutes 1996, sections 10A.322, subdivision 4; 10A.43, subdivision 5; 13.99, subdivision 86a; and 290.06, subdivision 23, are repealed."

Page 419, after line 5, insert:

"Sections 11, 12, and 35 are effective for political contributions made after June 30, 1997."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

.

A roll call was requested and properly seconded.

The question was taken on the first portion of the Sviggum amendment and the roll was called. There were 54 yeas and 79 nays as follows:

Those who voted in the affirmative were:

Journal of the House - 47th Day - Top of Page 3175
Abrams	Dehler	Knight	Molnau	Reuter	Swenson, H.
Anderson, B.	Erhardt	Koppendrayer	Mulder	Rhodes	Sykora
Bettermann	Finseth	Kraus	Ness	Rifenberg	Tingelstad
Bishop	Goodno	Krinkie	Nornes	Rostberg	Tompkins
Boudreau	Gunther	Kuisle	Olson, M.	Seagren	Tuma
Bradley	Haas	Larsen	Osskopp	Seifert	Van Dellen
Broecker	Harder	Lindner	Ozment	Stanek	Weaver
Commers	Holsten	Macklin	Paulsen	Sviggum	Westfall
Daggett	Kielkucki	Mares	Pawlenty	Swenson, D.	Workman

Those who voted in the negative were:

Anderson, I.	Folliard	Kahn	Marko	Pelowski	Trimble
Bakk	Garcia	Kalis	McCollum	Peterson	Tunheim
Biernat	Greenfield	Kelso	McElroy	Pugh	Wagenius
Carlson	Greiling	Kinkel	McGuire	Rest	Wejcman
Chaudhary	Hasskamp	Knoblach	Milbert	Rukavina	Wenzel
Clark	Hausman	Koskinen	Mullery	Schumacher	Westrom
Davids	Hilty	Kubly	Munger	Sekhon	Winter
Dawkins	Huntley	Leighton	Murphy	Skare	Wolf
Delmont	Jaros	Leppik	Olson, E.	Skoglund	Spk. Carruthers
Dempsey	Jefferson	Lieder	Opatz	Slawik
Dorn	Jennings	Long	Orfield	Smith
Entenza	Johnson, A.	Luther	Osthoff	Solberg
Evans	Johnson, R.	Mahon	Otremba	Stang
Farrell	Juhnke	Mariani	Paymar	Tomassoni

The motion did not prevail and the first portion of the Sviggum amendment was not adopted.

The second portion of the Sviggum amendment H. F. No. 2163, the first engrossment, as amended, reads as follows:

Page 407, after line 22, insert:

"Sec. 11. Minnesota Statutes 1996, section 289A.50, subdivision 1, is amended to read:

Subdivision 1. [GENERAL RIGHT TO REFUND.] (a) Subject to the requirements of this section and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and who files a written claim for refund will be refunded or credited the overpayment of the tax determined by the commissioner to be erroneously paid.

(b) The claim must specify the name of the taxpayer, the date when and the period for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims was erroneously paid, the grounds on which a refund is claimed, and other information relative to the payment and in the form required by the commissioner. An income tax, estate tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes a claim for refund.

(c) When, in the course of an examination, and within the time for requesting a refund, the commissioner determines that there has been an overpayment of tax, the commissioner shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer. If the amount of the overpayment is less than $1, the commissioner is not required to refund. In these situations, the commissioner does not have to make written findings or serve notice by mail to the taxpayer.

(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes, penalties, and interest reported in the return of the entertainment entity or imposed by section 290.9201, the excess must be refunded to the entertainment entity. If the excess is less than $1, the commissioner need not refund that amount.

(f) If the surety deposit required for a construction contract exceeds the liability of the out-of-state contractor, the commissioner shall refund the difference to the contractor.

(g) An action of the commissioner in refunding the amount of the overpayment does not constitute a determination of the correctness of the return of the taxpayer.

(h) There is appropriated from the general fund to the commissioner of revenue the amount necessary to pay refunds allowed under this section.

Sec. 12. Minnesota Statutes 1996, section 290.01, subdivision 6, is amended to read:

Subd. 6. [TAXPAYER.] The term "taxpayer" means any person or corporation subject to a tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term "taxpayer" means an individual eligible to vote in Minnesota under section 201.014."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the second portion of the Sviggum amendment and the roll was called.

Marko moved that those not voting be excused from voting. The motion prevailed.

There were 0 yeas and 131 nays as follows:

Those who voted in the negative were:

Abrams	Evans	Kahn	Mariani	Pawlenty	Sviggum
Anderson, B.	Farrell	Kalis	Marko	Paymar	Swenson, D.
Bakk	Finseth	Kielkucki	McCollum	Pelowski	Swenson, H.
Bettermann	Folliard	Kinkel	McElroy	Peterson	Sykora
Biernat	Garcia	Knight	McGuire	Pugh	Tingelstad
Bishop	Goodno	Knoblach	Milbert	Rest	Tomassoni
Boudreau	Greenfield	Koppendrayer	Molnau	Reuter	Tompkins
Bradley	Greiling	Koskinen	Mulder	Rhodes	Trimble
Broecker	Gunther	Kraus	Mullery	Rifenberg	Tuma
Carlson	Haas	Krinkie	Munger	Rostberg	Tunheim
Chaudhary	Harder	Kubly	Murphy	Rukavina	Van Dellen
Clark	Hasskamp	Kuisle	Ness	Schumacher	Wagenius
Commers	Hausman	Larsen	Nornes	Seagren	Weaver
Daggett	Hilty	Leighton	Olson, E.	Seifert	Wejcman
Davids	Holsten	Leppik	Olson, M.	Sekhon	Wenzel
Dawkins	Huntley	Lieder	Opatz	Skare	Westfall
Dehler	Jaros	Lindner	Orfield	Skoglund	Westrom
Delmont	Jefferson	Long	Osskopp	Slawik	Winter
Dempsey	Jennings	Luther	Osthoff	Smith	Wolf
Dorn	Johnson, A.	Macklin	Otremba	Solberg	Workman
Entenza	Johnson, R.	Mahon	Ozment	Stanek	Spk. Carruthers
Erhardt	Juhnke	Mares	Paulsen	Stang

The motion did not prevail and the second portion of the Sviggum amendment was not adopted.

The third portion of the Sviggum amendment to H. F. No. 2163, the first engrossment, as amended, reads as follows:

Page 418, after line 24, insert:

"Sec. 32. [APPROPRIATION FOR REIMBURSEMENT INCREASES.]

Subdivision 1. [APPROPRIATION.] $5,000,000 is appropriated for fiscal year 1998 from the general fund to the commissioner of human services for reimbursement increases as provided in subdivision 2. This amount is available until June 30, 1999.

Subd. 2. [REIMBURSEMENT INCREASES.] Effective for services rendered on or after July 1, 1997, the commissioner shall use the amount appropriated under subdivision 1 to increase reimbursement rates for home- and community-based waiver services for persons with mental retardation or related conditions under Minnesota Statutes, section 256B.501; home- and community-based waiver services for the elderly under Minnesota Statutes, section 256B.0915; community alternatives for disabled individuals waiver services under Minnesota Statutes, section 256B.49; community alternative care waiver services under Minnesota Statutes, section 256B.49; traumatic brain injury waiver services under Minnesota Statutes, section 256B.49; nursing services and home health services under Minnesota Statutes, section 256B.0625, subdivision 6a; personal care services and nursing supervision of personal care services under Minnesota Statutes, section 256B.0625, subdivision 19a; private duty nursing services under Minnesota Statutes, section 256B.0625, subdivision 7; day training and habilitation services for adults with mental retardation or related conditions under Minnesota Statutes, sections 252.40 to 252.47; physical therapy services under Minnesota Statutes, sections 256B.0625, subdivision 8, and 256D.03, subdivision 4; occupational therapy services under Minnesota Statutes, sections 256B.0625, subdivision 8a, and 256D.03, subdivision 4; speech-language therapy services under Minnesota Statutes, section 256D.03, subdivision 4, and Minnesota Rules, part 9505.0390; respiratory therapy services under Minnesota Statutes, section 256D.03, subdivision 4, and Minnesota Rules, part 9505.0295; dental services under Minnesota Statutes, sections 256B.0625, subdivision 9, and 256D.03, subdivision 4; alternative care services under Minnesota Statutes, section 256B.0913; and semi-independent living services under Minnesota Statutes, section 252.275."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the third portion of the Sviggum amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 127 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Sykora
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Tingelstad
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Bettermann	Folliard	Kinkel	McGuire	Rest	Tompkins
Journal of the House - 47th Day - Top of Page 3178
Biernat	Garcia	Knight	Milbert	Reuter	Trimble
Bishop	Goodno	Knoblach	Molnau	Rhodes	Tuma
Boudreau	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Bradley	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Broecker	Gunther	Kraus	Munger	Schumacher	Wagenius
Carlson	Haas	Krinkie	Murphy	Seagren	Weaver
Chaudhary	Harder	Kubly	Ness	Seifert	Wejcman
Clark	Hasskamp	Kuisle	Nornes	Sekhon	Wenzel
Commers	Hausman	Larsen	Olson, M.	Skare	Westfall
Daggett	Hilty	Leighton	Opatz	Skoglund	Westrom
Davids	Holsten	Leppik	Orfield	Slawik	Winter
Dawkins	Huntley	Lindner	Osskopp	Smith	Wolf
Dehler	Jefferson	Long	Osthoff	Solberg	Spk. Carruthers
Delmont	Jennings	Luther	Otremba	Stanek
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.

The motion prevailed and the third portion of the Sviggum amendment was adopted.

Van Dellen, Paulsen, Tuma, Erhardt, Sykora, Broecker, Larsen, Krinkie, Commers and Olson, M., moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Pages 386 to 401, delete Article 18 and insert:

Section 1. Minnesota Statutes 1996, section 290A.04, is amended by adding a subdivision to read:

Subd. 2j. Effective beginning for taxes payable in 1998, a claimant who is a homeowner is allowed a credit equal to the excess of the claimant's net property taxes over six percent of the claimant's household income. In order to qualify for a credit under this subdivision, the claimant or the spouse of the claimant must be at least 65 years of age on December 31 of the year prior to the year in which the taxes are payable and must have resided in the homestead for at least ten consecutive years ending on December 31 of the year prior to the year in which the taxes are payable. No payment is allowed if the claimant's household income exceeds the maximum income for which a claimant may receive a refund under subdivision 2. The commissioner of revenue may require claimants to certify eligibility for the credit in a form the commissioner prescribes. For purposes of this subdivision, "net property taxes" means property taxes payable after reduction for all state paid aids or credits and after deduction of the refund for which the claimant qualifies under subdivisions 2 and 2h."

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Van Dellen et al amendment and the roll was called. There were 62 yeas and 71 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Koppendrayer	Ness	Seagren	Tuma
Anderson, B.	Farrell	Kraus	Nornes	Seifert	Van Dellen
Bettermann	Finseth	Krinkie	Olson, M.	Smith	Weaver
Boudreau	Goodno	Kuisle	Osskopp	Stanek	Westfall
Bradley	Gunther	Larsen	Ozment	Stang	Westrom
Broecker	Haas	Lindner	Paulsen	Sviggum	Wolf
Commers	Harder	Macklin	Pawlenty	Swenson, D.	Workman
Daggett	Holsten	Mares	Reuter	Swenson, H.
Davids	Kielkucki	McElroy	Rhodes	Sykora
Journal of the House - 47th Day - Top of Page 3179
Dehler	Knight	Molnau	Rifenberg	Tingelstad
Dempsey	Knoblach	Mulder	Rostberg	Tompkins

Those who voted in the negative were:

Anderson, I.	Folliard	Johnson, R.	Luther	Orfield	Skoglund
Bakk	Garcia	Juhnke	Mahon	Osthoff	Slawik
Biernat	Greenfield	Kahn	Mariani	Otremba	Solberg
Bishop	Greiling	Kalis	Marko	Paymar	Tomassoni
Carlson	Hasskamp	Kelso	McCollum	Pelowski	Trimble
Chaudhary	Hausman	Kinkel	McGuire	Peterson	Tunheim
Clark	Hilty	Koskinen	Milbert	Pugh	Wagenius
Dawkins	Huntley	Kubly	Mullery	Rest	Wejcman
Delmont	Jaros	Leighton	Munger	Rukavina	Wenzel
Dorn	Jefferson	Leppik	Murphy	Schumacher	Winter
Entenza	Jennings	Lieder	Olson, E.	Sekhon	Spk. Carruthers
Evans	Johnson, A.	Long	Opatz	Skare

The motion did not prevail and the amendment was not adopted.

Kalis moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 138, after line 19, insert:

"Sec. 6. [FARIBAULT COUNTY; CITY OF BLUE EARTH; SPECIAL LEVY.]

The amount of taxes levied by Faribault county and by the city of Blue Earth is a special levy for the purposes of levy limits under Minnesota Statutes, sections 275.70 and 275.73, if the levy's purpose is to raise the matching funds required to receive restitution funds awarded by plea agreement in the case of United States v. Darling International, Inc., for developing environmental projects that will improve water quality in the Blue Earth and Minnesota rivers."

Page 138, line 21, delete "This article is" and insert "Sections 1 to 5 are"

Page 138, after line 22, insert:

"Upon compliance with Minnesota Statutes, section 645.021, subdivision 3, by the governing body of Faribault county or the city of Blue Earth, section 6 is effective for taxes levied in 1997, 1998, and 1999, in the city or county that approves it."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Tomassoni moved to amend H. F. No. 2163, the first engrossment, as amended, as follows:

Page 342, after line 12, insert:

"Sec. 31. [CITY OF HIBBING.]

district No. 1 to pay project cost for the Hibbing community and technical college student housing project, but not to exceed the amount that would be permitted by Minnesota Statutes, section 469.1763, subdivisions 1 and 2, if they applied.

Subd. 2. [LOCAL APPROVAL.] This section is effective upon compliance by Hibbing economic development authority with Minnesota Statutes, section 645.021, subdivision 3."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Tomassoni amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 33 yeas and 98 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Hasskamp	Kraus	Milbert	Pugh	Trimble
Bakk	Hilty	Leighton	Mullery	Rukavina	Tuma
Chaudhary	Holsten	Luther	Murphy	Schumacher	Workman
Davids	Jaros	Mariani	Osskopp	Smith
Dehler	Johnson, A.	McCollum	Osthoff	Solberg
Farrell	Kalis	McGuire	Peterson	Tomassoni

Those who voted in the negative were:

Abrams	Evans	Kelso	Mares	Pelowski	Sykora
Anderson, B.	Finseth	Kielkucki	Marko	Rest	Tingelstad
Bettermann	Folliard	Kinkel	McElroy	Reuter	Tompkins
Biernat	Garcia	Knight	Molnau	Rhodes	Tunheim
Bishop	Goodno	Knoblach	Mulder	Rifenberg	Van Dellen
Boudreau	Greenfield	Koppendrayer	Munger	Rostberg	Wagenius
Bradley	Greiling	Koskinen	Ness	Seagren	Weaver
Broecker	Gunther	Krinkie	Nornes	Seifert	Wenzel
Carlson	Haas	Kubly	Olson, E.	Sekhon	Westfall
Commers	Harder	Kuisle	Olson, M.	Skare	Westrom
Daggett	Hausman	Larsen	Opatz	Skoglund	Winter
Dawkins	Huntley	Leppik	Orfield	Slawik	Wolf
Delmont	Jefferson	Lieder	Otremba	Stanek	Spk. Carruthers
Dempsey	Jennings	Lindner	Ozment	Stang
Dorn	Johnson, R.	Long	Paulsen	Sviggum
Entenza	Juhnke	Macklin	Pawlenty	Swenson, D.
Erhardt	Kahn	Mahon	Paymar	Swenson, H.

The motion did not prevail and the amendment was not adopted.

276.012; 276A.06, subdivision 9; 290A.03, subdivisions 12a and 14; 290A.055; 290A.26; 297A.01, subdivisions 20 and 21; 297A.02, subdivision 5; 297A.25, subdivision 29; 462.384, subdivision 7; 462.385, subdivision 2; 462.389, subdivision 5; 462.391, subdivisions 1, 2, 3, 4, 6, 7, 8, and 9; 462.392; 469.176, subdivisions 1a and 5; 469.1782, subdivision 1; 469.181; 473F.08, subdivision 8a; and 645.34; Laws 1995, chapter 264, article 4, as amended.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 101 yeas and 32 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Johnson, R.	Mares	Otremba	Stanek
Anderson, I.	Farrell	Juhnke	Mariani	Ozment	Swenson, D.
Bakk	Finseth	Kahn	Marko	Pawlenty	Swenson, H.
Bettermann	Folliard	Kalis	McCollum	Paymar	Tingelstad
Biernat	Garcia	Kelso	McElroy	Pelowski	Tomassoni
Bishop	Greenfield	Kinkel	McGuire	Peterson	Tompkins
Bradley	Greiling	Koppendrayer	Milbert	Pugh	Trimble
Carlson	Gunther	Koskinen	Mullery	Rest	Tuma
Chaudhary	Harder	Kubly	Munger	Rhodes	Tunheim
Clark	Hasskamp	Larsen	Murphy	Rostberg	Wagenius
Daggett	Hausman	Leighton	Ness	Rukavina	Weaver
Dawkins	Hilty	Leppik	Nornes	Schumacher	Wejcman
Delmont	Huntley	Lieder	Olson, E.	Seifert	Wenzel
Dempsey	Jaros	Long	Opatz	Sekhon	Westrom
Dorn	Jefferson	Luther	Orfield	Skoglund	Winter
Entenza	Jennings	Macklin	Osskopp	Slawik	Spk. Carruthers
Erhardt	Johnson, A.	Mahon	Osthoff	Solberg

Those who voted in the negative were:

Anderson, B.	Goodno	Kraus	Olson, M.	Smith	Wolf
Boudreau	Haas	Krinkie	Paulsen	Stang	Workman
Broecker	Holsten	Kuisle	Reuter	Sviggum
Commers	Kielkucki	Lindner	Rifenberg	Sykora
Davids	Knight	Molnau	Seagren	Van Dellen
Dehler	Knoblach	Mulder	Skare	Westfall

The bill was passed, as amended, and its title agreed to.

The Speaker called Opatz to the Chair.

Pursuant to rule 1.10, Solberg requested immediate consideration of S. F. No. 1880.

S. F. No. 1880 was reported to the House.

Skoglund moved to amend S. F. No. 1880, the second unofficial engrossment, as follows:

Page 43, line 33, after "(7)" insert "unlawfully interferes with the activities of a commercial establishment, research facility, or educational institution, when any of these entities is involved in selling or providing services for animals or animal products, or is involved in using animals for research purposes; or"

Renumber the subsequent clause in sequence

The motion prevailed and the amendment was adopted.

Reuter moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Page 18, after line 18, insert:

"Sec. 21. [YEAR 2000 READY.]

Any computer software or hardware that is purchased with money appropriated in this bill must be year 2000 ready."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Reuter and Farrell moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Page 148, line 21, after the period, insert "A person is not a dependent for purposes of this section during the period of time the person is covered under another group health plan."

The motion prevailed and the amendment was adopted.

Sviggum moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Page 18, after line 18, insert:

"Sec. 21. [GENERAL FUND REDUCTION.]

Each general fund appropriation in this act shall be reduced by one percent for each fiscal year and the money shall be returned to the general fund and the taxpayers of the state of Minnesota and the section and subdivision totals adjusted accordingly."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called. There were 55 yeas and 78 nays as follows:

Those who voted in the affirmative were:

Anderson, B.	Finseth	Koppendrayer	Mulder	Seifert	Weaver
Bakk	Goodno	Kraus	Ness	Smith	Westfall
Bettermann	Gunther	Krinkie	Nornes	Sviggum	Westrom
Boudreau	Haas	Kuisle	Osskopp	Swenson, D.	Wolf
Bradley	Harder	Lindner	Paulsen	Swenson, H.	Workman
Commers	Holsten	Macklin	Reuter	Sykora
Daggett	Jaros	Mares	Rifenberg	Tingelstad
Dehler	Kielkucki	Marko	Rostberg	Tompkins
Journal of the House - 47th Day - Top of Page 3184
Dempsey	Kinkel	McElroy	Rukavina	Tuma
Erhardt	Knight	Molnau	Seagren	Van Dellen

Those who voted in the negative were:

Abrams	Evans	Johnson, R.	Luther	Osthoff	Skoglund
Anderson, I.	Farrell	Juhnke	Mahon	Otremba	Slawik
Biernat	Folliard	Kahn	Mariani	Ozment	Solberg
Bishop	Garcia	Kalis	McCollum	Pawlenty	Stanek
Broecker	Greenfield	Kelso	McGuire	Paymar	Stang
Carlson	Greiling	Knoblach	Milbert	Pelowski	Tomassoni
Chaudhary	Hasskamp	Koskinen	Mullery	Peterson	Trimble
Clark	Hausman	Kubly	Munger	Pugh	Tunheim
Davids	Hilty	Larsen	Murphy	Rest	Wagenius
Dawkins	Huntley	Leighton	Olson, E.	Rhodes	Wejcman
Delmont	Jefferson	Leppik	Olson, M.	Schumacher	Wenzel
Dorn	Jennings	Lieder	Opatz	Sekhon	Winter
Entenza	Johnson, A.	Long	Orfield	Skare	Spk. Carruthers

The motion did not prevail and the amendment was not adopted.

Bishop and Skoglund moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Page 175, line 31, delete the new language

Page 175, line 32, delete "commissioner" and insert ", violates furlough conditions, or is released from court while on institution status"

The motion prevailed and the amendment was adopted.

Kraus, Skoglund, Biernat and Swenson, D., moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Page 85, delete the sentence beginning on line 3, and insert: "Adoptive parents and a birth relative may enter an agreement regarding communication with or contact between an adopted minor, adoptive parents, and a birth relative under this section. An agreement may be entered between:

(1) adoptive parents and a birth relative with whom the child resided before being adopted; or

(2) adoptive parents and any other birth relative if the child is adopted by a birth relative upon the death of both birth parents."

The motion prevailed and the amendment was adopted.

Stanek moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Stanek amendment and the roll was called. There were 66 yeas and 67 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Knight	Milbert	Reuter	Sykora
Anderson, B.	Erhardt	Koppendrayer	Molnau	Rifenberg	Tingelstad
Bettermann	Finseth	Kraus	Ness	Rostberg	Tompkins
Boudreau	Gunther	Krinkie	Nornes	Seagren	Tuma
Bradley	Haas	Kuisle	Olson, E.	Seifert	Van Dellen
Broecker	Harder	Larsen	Olson, M.	Smith	Weaver
Chaudhary	Hasskamp	Lieder	Osskopp	Stanek	Wenzel
Commers	Holsten	Lindner	Ozment	Stang	Westfall
Daggett	Kalis	Macklin	Paulsen	Sviggum	Westrom
Davids	Kelso	Mares	Pawlenty	Swenson, D.	Wolf
Dehler	Kielkucki	McElroy	Rest	Swenson, H.	Workman

Those who voted in the negative were:

Anderson, I.	Folliard	Johnson, R.	Mariani	Paymar	Tomassoni
Bakk	Garcia	Juhnke	Marko	Pelowski	Trimble
Biernat	Goodno	Kahn	McCollum	Peterson	Tunheim
Bishop	Greenfield	Kinkel	McGuire	Pugh	Wagenius
Carlson	Greiling	Knoblach	Mulder	Rhodes	Wejcman
Clark	Hausman	Koskinen	Mullery	Rukavina	Winter
Dawkins	Hilty	Kubly	Munger	Schumacher	Spk. Carruthers
Delmont	Huntley	Leighton	Murphy	Sekhon
Dorn	Jaros	Leppik	Opatz	Skare
Entenza	Jefferson	Long	Orfield	Skoglund
Evans	Jennings	Luther	Osthoff	Slawik
Farrell	Johnson, A.	Mahon	Otremba	Solberg

The motion did not prevail and the amendment was not adopted.

Leppik, Greenfield and Mulder moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Page 48, line 19, after "that" insert:

"the pharmacy or pharmacist require the purchaser to return for disposal an equal or greater number of used hypodermic needles and syringes as is purchased, and"

The motion prevailed and the amendment was adopted.

Osskopp offered an amendment to S. F. No. 1880, the second unofficial engrossment, as amended.

Skoglund raised a point of order pursuant to rule 3.09 that the Osskop amendment was not in order. Speaker pro tempore Opatz ruled the point of order well taken and the Osskopp amendment out of order.

.

Sviggum appealed the decision of the Chair.

A roll call was requested and properly seconded.

The vote was taken on the question "Shall the decision of Speaker pro tempore Opatz stand as the judgment of the House?" and the roll was called. There were 70 yeas and 63 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Folliard	Johnson, R.	Mahon	Osthoff	Slawik
Bakk	Garcia	Juhnke	Mariani	Otremba	Solberg
Biernat	Greenfield	Kahn	Marko	Paymar	Tomassoni
Carlson	Greiling	Kalis	McCollum	Pelowski	Trimble
Chaudhary	Hasskamp	Kelso	McGuire	Peterson	Tunheim
Clark	Hausman	Kinkel	Milbert	Pugh	Wagenius
Dawkins	Hilty	Koskinen	Mullery	Rest	Wejcman
Delmont	Huntley	Kubly	Munger	Rukavina	Wenzel
Dorn	Jaros	Leighton	Murphy	Schumacher	Winter
Entenza	Jefferson	Lieder	Olson, E.	Sekhon	Spk. Carruthers
Evans	Jennings	Long	Opatz	Skare
Farrell	Johnson, A.	Luther	Orfield	Skoglund

Those who voted in the negative were:

Abrams	Dempsey	Koppendrayer	Mulder	Rostberg	Tompkins
Anderson, B.	Erhardt	Kraus	Ness	Seagren	Tuma
Bettermann	Finseth	Krinkie	Nornes	Seifert	Van Dellen
Bishop	Goodno	Kuisle	Olson, M.	Smith	Weaver
Boudreau	Gunther	Larsen	Osskopp	Stanek	Westfall
Bradley	Haas	Leppik	Ozment	Stang	Westrom
Broecker	Harder	Lindner	Paulsen	Sviggum	Wolf
Commers	Holsten	Macklin	Pawlenty	Swenson, D.	Workman
Daggett	Kielkucki	Mares	Reuter	Swenson, H.
Davids	Knight	McElroy	Rhodes	Sykora
Dehler	Knoblach	Molnau	Rifenberg	Tingelstad

So it was the judgment of the House that the decision of Speaker pro tempore Opatz should stand.

Orfield was excused for the remainder of today's session.

Farrell, Leighton, Solberg, Pugh, Bishop and Olson, M., moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Pages 45 and 46, delete section 24

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The question was taken on the Farrell et al amendment and the roll was called.

Marko moved that those not voting be excused from voting. The motion prevailed.

There were 50 yeas and 82 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Garcia	Jennings	McCollum	Paymar	Tuma
Bishop	Greenfield	Johnson, A.	McGuire	Pugh	Wejcman
Carlson	Greiling	Kahn	Milbert	Rest	Wenzel
Clark	Hasskamp	Kelso	Mullery	Rukavina	Winter
Dawkins	Hausman	Kinkel	Munger	Schumacher	Spk. Carruthers
Delmont	Holsten	Leighton	Olson, E.	Skare
Dorn	Huntley	Lieder	Olson, M.	Solberg
Evans	Jaros	Long	Opatz	Tomassoni
Farrell	Jefferson	Mariani	Osthoff	Trimble

Those who voted in the negative were:

Abrams	Entenza	Knoblach	Marko	Reuter	Swenson, H.
Anderson, B.	Erhardt	Koppendrayer	McElroy	Rhodes	Sykora
Bakk	Finseth	Koskinen	Molnau	Rifenberg	Tingelstad
Bettermann	Folliard	Kraus	Mulder	Rostberg	Tompkins
Biernat	Goodno	Krinkie	Murphy	Seagren	Tunheim
Boudreau	Gunther	Kubly	Ness	Seifert	Van Dellen
Bradley	Haas	Kuisle	Nornes	Sekhon	Wagenius
Broecker	Harder	Larsen	Osskopp	Skoglund	Weaver
Chaudhary	Hilty	Leppik	Otremba	Slawik	Westfall
Commers	Johnson, R.	Lindner	Ozment	Smith	Westrom
Daggett	Juhnke	Luther	Paulsen	Stanek	Wolf
Davids	Kalis	Macklin	Pawlenty	Stang	Workman
Dehler	Kielkucki	Mahon	Pelowski	Sviggum
Dempsey	Knight	Mares	Peterson	Swenson, D.

The motion did not prevail and the amendment was not adopted.

Sviggum moved to amend S. F. No. 1880, the second unofficial engrossment, as amended, as follows:

Page 192, after line 19, insert:

Section 1. [244A.01] [REQUIRING NOTICE BY STATE IN DEATH PENALTY CASES.]

If the state intends to seek the death penalty for an offense punishable by death, the prosecuting attorney shall sign and file with the court, and serve upon the defendant, a notice that the state will seek the sentence of death in the event of conviction. The notice must be filed and served within a reasonable time before trial or acceptance by the court of a plea of guilty. If the prosecuting attorney does not comply with the notice requirements of this section, the court may not impose the death penalty under section 4.

Sec. 2. [244A.02] [APPOINTMENT OF ATTORNEYS IN CAPITAL CASES.]

attorney and is not able to afford one, the court shall order the appropriate district public defender to assign two public defenders. If the defendant is convicted and sentenced to death, the state public defender shall represent the defendant during the appeal process.

Sec. 3. [244A.03] [SENTENCE OF DEATH FOR MURDER IN CERTAIN CASES; SENTENCING PROCEEDINGS.]

Subdivision 1. [DEFINITIONS.] For purposes of this section, "first degree murder" includes:

(1) murder in the first degree, as defined in section 609.185, clause (4); and

(2) the first degree murder of a victim who is a minor.

Subd. 2. [EXCLUDING DEATH SENTENCE.] When a defendant is found guilty of first degree murder, the court shall impose a sentence other than that of death if it is satisfied that:

(1) none of the aggravating circumstances listed in subdivision 4 was established by the evidence at the trial or will be established at a sentencing proceeding under subdivision 3;

(2) substantial mitigating circumstances, established by the evidence at the trial, call for leniency;

(3) the defendant, with the consent of the prosecuting attorney and the approval of the court, pleaded guilty to murder with life imprisonment or a lesser sentence as the maximum term;

(4) the defendant was under 18 years of age at the time of the commission of the crime;

(5) the defendant's physical or mental condition calls for leniency; or

(6) although the evidence is sufficient to sustain the verdict, it does not foreclose all doubt about the defendant's guilt.

Subd. 3. [SEPARATE SENTENCING PROCEEDING TO DETERMINE IF DEATH PENALTY WARRANTED.] (a) If a defendant is convicted of first degree murder, the court shall conduct a separate proceeding to determine whether the defendant should be sentenced to death or to a sentence other than death as required by law, unless the court imposes a sentence under subdivision 2. The proceeding must be conducted before the court alone if the defendant was convicted by a court sitting without a jury, if the defendant pleaded guilty, or if the prosecuting attorney and the defendant waive a jury with respect to sentencing. In other cases it must be conducted before the court sitting with the jury that determined the defendant's guilt or, if the court for good cause shown discharges that jury, with a new jury impaneled for the purpose.

(b) In the proceeding, evidence may be presented about any matter that the court considers relevant to sentence, including the nature and circumstances of the crime, the defendant's character, background, history, mental and physical condition, and any of the aggravating or mitigating circumstances listed in subdivisions 4 and 5. Any evidence relevant to the sentence, not legally privileged, that the court considers to have probative force, may be received, regardless of its admissibility under the exclusionary rules of evidence. The defendant's counsel must be given a fair opportunity to rebut the evidence. The prosecuting attorney and the defendant or defendant's counsel must be permitted to present arguments for or against a sentence of death.

Subd. 4. [AGGRAVATING CIRCUMSTANCES.] (a) In this subdivision, "involved in" means engaged in committing a crime or attempting to commit a crime, acting as an accomplice in a crime or an attempt at a crime, or fleeing after committing or attempting to commit a crime.

(b) "Aggravating circumstances" are limited to the following:

(1) the defendant was previously convicted of another murder;

(3) the defendant knowingly created a great risk of death to many persons;

(4) the murder was committed for remuneration or the promise of remuneration or the defendant employed another to commit the murder for remuneration or the promise of remuneration;

(5) the murder was especially heinous, atrocious, or cruel, manifesting exceptional depravity. For purposes of this clause, the following definitions have the meanings given them:

(i) "especially cruel" means the crime is committed in an "especially cruel" manner when the perpetrator inflicts mental anguish or physical abuse before a victim's death;

(ii) "mental anguish" includes victims' uncertainty as to their ultimate fate;

(iii) "especially depraved" means the crime is committed in an "especially depraved" manner when the perpetrator relishes the murder, evidencing debasement or perversion, or shows an indifference to the suffering of the victim and evidences a pleasure in the killing;

(6) by the murder, or circumstances surrounding its commission, the defendant exhibited utter disregard for human life. For the purpose of this clause, "utter disregard" is meant to be reflective of the cold-blooded, pitiless slayer who kills without feeling or sympathy;

(7) the defendant, by prior conduct or conduct in the commission of the murder at hand, has exhibited a propensity to commit murder which will probably constitute a continuing threat to society;

(8) the murder was committed against a witness or potential witness in a criminal or civil legal proceeding because of the proceeding;

(9) the victim of the murder was a public safety officer, as defined in section 299A.41, subdivision 4;

(10) the victim was under the age of 12 years and had a past history of physical or sexual abuse by the defendant, as defined in section 626.556, subdivision 2;

(11) the defendant was being held in lawful custody at the time of the murder;

(12) the murder was committed while the defendant was involved in criminal sexual conduct in the first degree by force or threat of force;

(13) the defendant intentionally killed the victim while the defendant was involved in a major controlled substance offense. "Major controlled substance offense" means an offense or series of offenses constituting a felony violation or violations under chapter 152, related to trafficking in controlled substances under circumstances more onerous than the usual offense and including at least one of the following circumstances:

(i) the offense involved an attempted or actual sale or transfer of controlled substances in quantities substantially larger than for personal use;

(ii) the defendant knowingly possessed a firearm during the commission of the offense;

(iii) the circumstances of the offense reveal that the defendant occupied a high position in the drug distribution hierarchy; or

(iv) the offense involved a high degree of sophistication or planning; or

Subd. 5. [MITIGATING CIRCUMSTANCES.] "Mitigating circumstances" include:

(1) the defendant has no significant history of prior criminal activity;

(2) the murder was committed while the defendant was under extreme mental or emotional disturbance, although not sufficiently impaired as to constitute a defense to prosecution;

(3) the victim was a participant in the defendant's homicidal conduct or consented to the homicidal act;

(4) the defendant acted on a threat of imminent infliction of death or great bodily harm;

(5) at the time of the offense, the capacity of the offender to appreciate the criminality of the conduct or to conform that conduct to law was impaired as a result of mental disease or defect or intoxication; or

(6) any other relevant mitigating circumstance.

Sec. 4. [244A.04] [IMPOSITION OF DEATH SENTENCE; MODE OF EXECUTION.]

Subdivision 1. [DECISION.] (a) The court has discretion to determine whether a sentence of death will be imposed, except that when the proceeding is conducted before the court sitting with a jury, the court may not impose a sentence of death unless (1) it submits to the jury the issue whether the defendant should be sentenced to death or to imprisonment, and (2) the jury returns a verdict that the sentence should be death. If the jury is unable to reach a unanimous verdict, the court shall dismiss the jury and impose a sentence other than death as required by law.

(b) The court, in exercising its discretion as to sentence, and the jury, in determining its verdict, shall take into account the aggravating and mitigating circumstances listed in section 3, subdivisions 4 and 5, and any other facts that the court or jury considers relevant, but the court or jury may not impose or recommend a sentence of death unless the court or jury unanimously finds one of the aggravating circumstances listed in section 3, subdivision 4, and further unanimously finds that there are no mitigating circumstances sufficiently substantial to call for leniency.

(c) The burden of establishing the existence of an aggravating circumstance is on the state and is not satisfied unless established beyond a reasonable doubt. The burden of establishing the existence of a mitigating circumstance is on the defendant and is not satisfied unless established by a preponderance of the evidence.

(d) If the issue is submitted to the jury, the court shall instruct the jury on the requirements of this subdivision. At that time, the court shall also inform the jury of the nature of the sentence of imprisonment that may be imposed if the jury verdict is against a sentence of death, including the implications of the sentence for possible supervised release. The court shall instruct the jury about the aggravating and mitigating circumstances listed in section 3. The court may provide the jury with a list of the aggravating and mitigating circumstances about which the jury is instructed.

Subd. 2. [IMPOSITION.] (a) If the proceeding is conducted without a jury, the court shall sentence the defendant to death when it:

(1) finds beyond a reasonable doubt that at least one statutory aggravating circumstance exists; and

(2) finds that there are no mitigating circumstances sufficiently substantial to call for leniency.

(b) When the proceeding is conducted before a jury, the court shall sentence the defendant to death when the jury unanimously:

(1) finds beyond a reasonable doubt that at least one statutory aggravating circumstance exists;

(2) finds that there are no mitigating circumstances sufficiently substantial to call for leniency; and

(c) When the jury does not recommend a sentence of death, the court shall sentence the defendant to imprisonment as provided by law.

Subd. 3. [SENTENCE OF DEATH PRECLUDED.] A sentence of death may not be carried out upon a person who is under 18 years of age at the time the crime was committed. A sentence of death may not be carried out upon a person who, by reason of a mental disease or defect, is unable to understand the impending death or the reasons for it. A sentence of death may not be carried out upon a person who is pregnant.

Subd. 4. [EXECUTION BY LETHAL INJECTION.] When the court sentences a defendant to death under subdivision 2, the order of execution must be carried out by administration of a continuous, intravenous injection of a lethal quantity of an ultra-fast-acting barbiturate in combination with a chemical paralytic agent until a licensed physician pronounces that the defendant is dead according to accepted standards of medical practice. The execution by lethal injection must be performed by a person selected by the chief executive officer of the maximum security facility at which the execution will take place and trained to administer the injection. The person administering the injection need not be a physician, registered nurse, or licensed practical nurse licensed or registered under the laws of this or another state.

Sec. 5. [244A.05] [SENTENCING COURT; ADMINISTRATIVE REQUIREMENTS.]

Subdivision 1. [DATE OF EXECUTION.] In pronouncing a sentence of death, the court shall set the date of execution not less than 60 days nor more than 90 days from the date the sentence is pronounced. If execution has been stayed by a court and the date set for execution has passed before dissolution of the stay, the court in which the defendant was previously sentenced shall, upon dissolution of the stay, set a new date of execution not less than five nor more than 90 days from the day the date is set. The defendant is entitled to be present in court on the day the new date of execution is set.

Subd. 2. [COPIES OF ORDER OF EXECUTION.] When a person is sentenced to death, the court administrator shall prepare certified copies of the judgment and order of execution and send these documents to the governor, defendant, defendant's counsel, attorney general, chief justice of the supreme court, state court administrator, and the state public defender's office within five business days following entrance of the order of execution.

Subd. 3. [DELIVERY OF DEFENDANT TO MAXIMUM SECURITY FACILITY.] Pending execution of a sentence of death, the sheriff or other chief law enforcement officer who has custody of the defendant may deliver the defendant to the maximum security facility designated by the commissioner of corrections to be the place where the execution is to be held. The state shall bear the costs of imprisoning the defendant from the date of delivery.

Sec. 6. [244A.06] [REVIEW OF DEATH SENTENCES BY SUPREME COURT.]

Subdivision 1. [AUTOMATIC REVIEW.] The judgment of conviction and a sentence of death are subject to automatic review by the supreme court within 60 days after certification by the sentencing court of the entire record, unless the supreme court extends the time, for good cause shown, for an additional period not to exceed 30 days. The review by the supreme court has priority over all other cases and must be heard in accordance with rules adopted by the supreme court.

Subd. 2. [TRANSCRIPT.] The court administrator, within ten days after receiving the transcript, shall transmit the entire record and transcript to the supreme court together with a notice prepared by the administrator and a report prepared by the trial judge. The notice must set forth the title and docket number of the case, the name of the defendant, the name and address of the defendant's attorney, a narrative statement of the judgment, the offense, and the punishment prescribed. The report must be in the form of a standard questionnaire prepared and supplied by the supreme court.

Subd. 3. [REVIEW GUIDELINES.] Each sentence of death must be reviewed by the supreme court to determine if it is excessive. In determining whether the sentence is excessive, the supreme court shall determine whether the:

(1) sentence was imposed under the influence of passion, prejudice, or other arbitrary factors;

(2) evidence supports the finding of a statutory aggravating circumstance; and

Subd. 4. [BRIEFS.] Both the defendant and the state have the right to submit briefs within the time provided by the court and to present oral argument to the court.

Subd. 5. [DECISION.] The supreme court shall:

(1) affirm the sentence of death; or

(2) set the sentence aside and remand the case for resentencing by the trial judge based on the record and argument of counsel.

Subd. 6. [NOTICE TO GOVERNOR.] Within five business days after reaching a decision under subdivision 5, the supreme court shall notify the governor whether the death sentence has been affirmed or set aside.

Sec. 7. [244A.07] [UNIFIED REVIEW PROCEDURE.]

Subdivision 1. [PROCEDURE.] The supreme court shall establish by rule a unified review procedure to provide for the presentation to the sentencing court and to the supreme court of all possible challenges to the trial, conviction, sentence, and detention of defendants upon whom the sentence of death has been or may be imposed. The unified review procedure governs both pretrial and posttrial appellate review of death penalty cases.

Subd. 2. [CHECKLISTS.] The supreme court shall establish by rule a series of checklists to be used by the trial court, the prosecuting attorney, and defense counsel before, during, and after the trial of cases in which the death penalty is sought to make certain that all possible matters that could be raised in defense have been considered by the defendant and defense counsel and either asserted in a timely and correct manner or waived in accordance with applicable legal requirements, so that, for purposes of any pretrial review and the trial and posttrial review, the record and transcript of proceedings will be complete for a review by the sentencing court and the supreme court of all possible challenges to the trial, conviction, sentence, and detention of the defendant.

Subd. 3. [WRIT OF HABEAS CORPUS.] Nothing in this section or in the rules of the supreme court limits or restricts the grounds of review or suspends the rights or remedies available through the procedures governing the writ of habeas corpus.

Sec. 8. [244A.08] [STAY OF EXECUTION OF DEATH.]

Subdivision 1. [GOVERNOR OR APPEAL.] The execution of a death sentence may be stayed only by the governor or incident to an appeal.

Subd. 2. [PROCEEDINGS WHEN INMATE UNDER SENTENCE OF DEATH APPEARS TO BE MENTALLY ILL OR PREGNANT.] If the governor is informed that an inmate under sentence of death may be mentally ill or pregnant, the governor shall stay execution of the sentence and require the sentencing court to order a mental or physical examination of the inmate, as appropriate.

Subd. 3. [EXAMINATION AND HEARING.] (a) If the court orders a mental examination of the inmate, it shall appoint at least one qualified psychiatrist, clinical psychologist, or physician experienced in the field of mental illness to examine the defendant and report on the defendant's mental condition. If the inmate or prosecution has retained a qualified psychiatrist, clinical psychologist, or physician experienced in the field of mental illness, the court on request of the inmate or prosecuting attorney shall direct that the psychiatrist, clinical psychologist, or physician be permitted to observe the mental examination and to conduct a mental examination of the inmate.

(b) At the conclusion of the examination, the examiner shall submit a written report to the court and send copies to the prosecuting attorney and defense attorney. The report must contain a diagnosis of the inmate's mental condition and whether the inmate has the mental capacity to understand the nature of the death penalty and the reasons why it was imposed.

(d) The hearing shall be scheduled so that the parties have adequate time to prepare and present arguments regarding the issue of mental illness or pregnancy. The parties may submit written arguments to the court before the date of the hearing and may make oral arguments before the court at the sentencing hearing. Before the hearing, the court shall send to the defendant or the defendant's attorney and the prosecuting attorney copies of the mental or physical examination.

Subd. 4. [MENTAL ILLNESS.] (a) If mental illness is the issue and the court decides that the inmate has the mental capacity to understand the nature of the death penalty and why it was imposed, the court shall so inform the governor. The governor shall issue a warrant to the chief executive officer of the maximum security facility where the execution is to be held directing the officer to execute the sentence at a time designated in the warrant.

(b) If the court decides that the inmate does not have the mental capacity to understand the nature of the death penalty and why it was imposed, the court shall so inform the governor. The governor shall have the inmate committed to the St. Peter Regional Treatment Center.

(c) A person under sentence of death who has been committed to the St. Peter Regional Treatment Center shall be kept there until the proper official of the hospital determines that the person has been restored to mental health. The hospital official shall then notify the governor of the official's determination, and the governor shall request the sentencing court to proceed as provided in this section.

Subd. 5. [PREGNANCY.] (a) If the court determines that the inmate is not pregnant, the court shall so inform the governor. The governor shall issue a warrant to the chief executive officer of the maximum security facility where the execution is to be held directing the chief executive officer to execute the sentence at a time designated in the warrant.

(b) If the court determines that the inmate is pregnant, the court shall so inform the governor. The governor shall stay execution of sentence during the pregnancy.

(c) If the court determines that an inmate whose execution has been stayed because of pregnancy is no longer pregnant, the court shall so inform the governor. The governor shall issue a warrant to the chief executive officer directing the chief executive officer to execute the sentence at a time designated in the warrant.

Subd. 6. [FEE.] The court shall allow a reasonable fee to the physician appointed under this section that must be paid by the state.

Sec. 9. [244A.09] [GOVERNOR'S DUTIES; ISSUANCE OF DEATH WARRANT.]

When notified by the supreme court under section 6 that a death sentence has been upheld, the governor shall issue a death warrant, attach it to a copy of the record, including the trial court's order of execution and the supreme court's affirming opinion, and send it to the chief executive officer of the maximum security facility where the inmate under sentence of death is being held. The warrant must direct that officer to execute the sentence at a time designated in the warrant. When notified by the supreme court under section 6 that a death sentence has been set aside, the governor shall order the commissioner of corrections to remove the inmate under sentence of death from the unit where inmates under sentence of death are confined and reassign the inmate consistent with the supreme court's opinion.

Sec. 10. [244A.10] [COMMISSIONER OF CORRECTIONS; DUTIES; DESIGNATION OF PLACE OF EXECUTION.]

Subdivision 1. [MAXIMUM SECURITY FACILITIES.] The commissioner of corrections shall designate one or more maximum security facilities at which executions of inmates under death sentence will take place. In each maximum security facility designated as a place where executions will take place, the commissioner shall establish and maintain a unit for the segregated confinement of inmates under sentence of death.

Subd. 3. [EXECUTIONER'S IDENTITY; PRIVATE DATA.] Information relating to the identity and compensation of the executioner is private data as defined in section 13.02, subdivision 12. The chief executive officer of the maximum security facility is not required to record the name of an individual acting as an executioner or any information that could identify that individual.

Subd. 4. [REGULATION OF EXECUTION.] The chief executive officer of the maximum security facility holding an execution or a deputy designated by that officer must be present at the execution. The chief executive officer shall set the day for execution within the week designated by the governor in the warrant.

Subd. 5. [WITNESS TO EXECUTION.] Twelve citizens selected by the chief executive officer must witness the execution. The chief executive officer shall select six representatives of the news media to witness the execution. Counsel for the inmate under sentence of death and members of the clergy requested by the inmate may be present at the execution. All other persons, except correctional facility officers and the executioner, must be excluded during the execution.

Subd. 6. [READING DEATH WARRANT.] The warrant authorizing the execution must be read to the convicted person immediately before death.

Subd. 7. [RETURN OF WARRANT OF EXECUTION ISSUED BY GOVERNOR.] After the death sentence has been executed, the chief executive officer of the maximum security facility where the execution took place shall return to the governor the warrant and a signed statement of the execution. The chief executive officer shall file an attested copy of the warrant and statement with the court administrator that imposed the sentence.

Subd. 8. [SENTENCE OF DEATH UNEXECUTED FOR UNJUSTIFIABLE REASONS.] If a death sentence is not executed because of unjustified failure of the governor to issue a warrant or for any other unjustifiable reason, on application of the attorney general, the supreme court shall issue a warrant directing the sentence to be executed during a week designated in the warrant.

Subd. 9. [RETURN OF WARRANT OF EXECUTION ISSUED BY SUPREME COURT.] After the sentence has been executed under a warrant issued by the supreme court, the chief executive officer shall return to the supreme court the warrant and a signed statement of the execution. The chief executive officer shall file an attested copy of the warrant and statement with the court administrator that imposed the sentence. The chief executive officer shall send to the governor an attested copy of the warrant and statement.

Sec. 11. [244A.11] [COSTS OF EXECUTION; REIMBURSEMENT; ATTORNEY GENERAL ASSISTANCE.]

Subdivision 1. [COSTS.] The state shall reimburse a county for all costs incurred for prosecution of a case involving the death penalty if the crimes for which the defendant is on trial occurred in that county. In a case involving the death penalty, if crimes for which the defendant is on trial occurred in more than one county, the state shall reimburse the county prosecuting the case for one-half of all costs incurred for prosecution.

Subd. 2. [ATTORNEY GENERAL ASSISTANCE.] The attorney general shall assist in the prosecution of cases involving the death penalty if requested to do so by the county prosecuting attorney.

Sec. 12. [APPROPRIATION.]

$1,000,000 is appropriated from the general fund to the commissioner of corrections to begin implementing sections 1 to 11 to be available until June 30, 1999.

Sec. 13. [EFFECTIVE DATE.]

Section 1. Minnesota Statutes 1996, section 243.05, subdivision 1, is amended to read:

Subdivision 1. [CONDITIONAL RELEASE.] Except for a person sentenced to death under article 11, section 4, the commissioner of corrections may parole any person sentenced to confinement in any state correctional facility for adults under the control of the commissioner of corrections, provided that:

(a) no inmate serving a life sentence for committing murder before May 1, 1980, other than murder committed in violation of clause (1) of section 609.185 who has not been previously convicted of a felony shall be paroled without having served 20 years, less the diminution that would have been allowed for good conduct had the sentence been for 20 years;

(b) no inmate serving a life sentence for committing murder before May 1, 1980, who has been previously convicted of a felony or though not previously convicted of a felony is serving a life sentence for murder in the first degree committed in violation of clause (1) of section 609.185 shall be paroled without having served 25 years, less the diminution which would have been allowed for good conduct had the sentence been for 25 years;

(c) any inmate sentenced prior to September 1, 1963, who would be eligible for parole had the inmate been sentenced after September 1, 1963, shall be eligible for parole; and

(d) any new rule or policy or change of rule or policy adopted by the commissioner of corrections which has the effect of postponing eligibility for parole has prospective effect only and applies only with respect to persons committing offenses after the effective date of the new rule or policy or change. Upon being paroled and released, an inmate is and remains in the legal custody and under the control of the commissioner, subject at any time to be returned to a facility of the department of corrections established by law for the confinement or treatment of convicted persons and the parole rescinded by the commissioner. The written order of the commissioner of corrections, is sufficient authority for any peace officer or state parole and probation agent to retake and place in actual custody any person on parole or supervised release, but any state parole and probation agent may, without order of warrant, when it appears necessary in order to prevent escape or enforce discipline, take and detain a parolee or person on supervised release or work release to the commissioner for action. The written order of the commissioner of corrections is sufficient authority for any peace officer or state parole and probation agent to retake and place in actual custody any person on probation under the supervision of the commissioner pursuant to section 609.135, but any state parole and probation agent may, without an order, when it appears necessary in order to prevent escape or enforce discipline, retake and detain a probationer and bring the probationer before the court for further proceedings under section 609.14. Persons conditionally released, and those on probation under the supervision of the commissioner of corrections pursuant to section 609.135 may be placed within or outside the boundaries of the state at the discretion of the commissioner of corrections or the court, and the limits fixed for these persons may be enlarged or reduced according to their conduct.

Except as otherwise provided in subdivision 1b, in considering applications for conditional release or discharge, the commissioner is not required to hear oral argument from any attorney or other person not connected with an adult correctional facility of the department of corrections in favor of or against the parole or release of any inmates, but the commissioner may institute inquiries by correspondence, taking testimony or otherwise, as to the previous history, physical or mental condition, and character of the inmate, and to that end shall have authority to require the attendance of the chief executive officer of any state adult correctional facility and the production of the records of these facilities, and to compel the attendance of witnesses. The commissioner is authorized to administer oaths to witnesses for these purposes.

Sec. 2. Minnesota Statutes 1996, section 609.10, is amended to read:

609.10 [SENTENCES AVAILABLE.]

Upon conviction of a felony and compliance with the other provisions of this chapter and chapter 244A the court, if it imposes sentence, may sentence the defendant to the extent authorized by law as follows: