8.4. SR 07-31-1995~a
~lk Ri
ver Tom:
MEMORANDUM
Mayor & City Council
TTi?M R _ !i _
FROM: Pat Klaers, City Admi or
DATE: July 31,1995
SUBJECT: Legislative Update
Attached for your review is the June 9, 1995, League of Minnesota Cities Legislative
Update. This material has previously been distributed to the City Council, but is offered
again as a reminder of what happened at the Legislature earlier this year. The highlight
for municipalities is the fact that not very much bad happened as it relates to municipal
finances. Elk River is scheduled to have a loss in the amount of money we receive
through the homestead and agricultural credit aid (HACA) program (currently estimated
at a loss of $21,000). If we are to proceed with an ice arena project, the city did receive
good news in terms of the Mighty Ducks legislation being approved. This legislation
makes it possible to receive some grant monies to assist in this building project. Up to
• $250,000 may be available to municipalities and, if the city cooperates with the school in
a joint powers agreement, we may also be able to get the materials tax free.
One of the most volatile issues at the Legislature this year was Tax Increment Financing
(TIF), and actually the municipalities received good news in that we now have another
option to the LGA loss of funds provision. This other option is a local match rather than
losing LGA funds. Some of the proposals that were looked at regarding TIF dramatically
affected future TIF projects and use of available funds from past TIF projects. We can
anticipate some of these proposals being approved into law in 1996 and Elk River should
take action in 1995 on how it wants to spend any available TIF funds. The city should
decide how to spend these monies by September or October in order to complete the
process before the end of 1995.
The TIF discussion is mainly on page LS3 and 4. The Mighty Ducks discussion is on
pages LS3 and LSS. This Legislative Session is really highlighted at the end of this
attachment by what was proposed but did not become law. These items are listed on page
LS16.
Please review the attached law summaries and I will hopefully be able to answer
questions you may have about any new laws that affect Elk River. If I can't address your
questions at the 7/31 meeting, then I will have to obtain more information from the
League and get back to the Council on their issues or questions. We can discuss the 1995
. Legislative Session in as much detail as desired by the Council.
council:legupd
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
~ , League of Minnesota Cities
:~ Cities bulletin
~~
Number 23 June 9, 1995
1995 legislative session comes to an end
Gary Carlson
The 1995 legislative session might
best be summarized as a session where
bad ideas flourished. Fortunately, few
became law. Members of the House
authored 1,999 bills and Senators
introduced 1,788 proposals before the
end of the session, a rate eclipsing that
of the 1993 appropriation session. A
significant number of the nearly 4,000
bills introduced this session, if enacted
into law, would have had some
measurable impact on cities.
The pre-session events started off
on a sour note with a relatively weak
budget forecast in November. Based
on the weak budget projections, the
Governor proposed a budget in January
that included a reduction of $77 million
in city LGA and HACA. The bad news
did non stop there. With few additional
state resources at their disposal,
lawmakers seemed to turn their
attention to local government. This, in
turn, led to several disagreeable notions
including. aid distribution councils,
reverse referenda requirement for city
and county levy increases, salary caps
for local officials, the property tax
freeze, taxation of state and municipal
bond interest, two-day elections,
preemption of local regulation of
shooting ranges, and the list goes on
and on.
From the outset of the session,
taxes were taboo. In fact, even non-tax
revenue enhancements such as user
fees or service. charges were attacked as.
back-door tax increases. For example,
when the League met with legislators
to request compensation for the use of
public rights-of-way for telecommuni-
cations purposes, legislators were
concerned that taxpayers would
interpret this as a tax increase. With
these perceived constraints affecting
legislators, it was apparent early on that
requests for additional funding for
cities would be futile. It was also
apparent that cities would be forced to
defend and protect remaining state
shared revenues such as LGA and
HACA.
When evaluating the outcomes of
the session, it may appear to have
ended in a draw -- few favorable new
initiatives for cities, but also remark-
ably few negative or onerous new laws
imposed. The drama of the 1995
session may have been more intriguing,
however, than many previous sessions.
Up to the last day of the regular
session, cities battled proposals to slash
HACA and LGA funding. Last minute
proposals to do so were tied to funding
our state's complicated K-12 education
finance system. In addition, legislation
to preempt local authority to regulate
tobacco sates and zoning of shooting
ranges were actively pursued and
indicative of other efforts to diminish
the importance and authority of cities.
Nonetheless, cities can claim
victory on several fronts.
Page 4 -Policy development Page LS 1 -New taws
LMC policy committee work A complete summary of new
begins in July. New committee laws affecting cities begins on
members are always welcome. page LS 1.
State aid to cities
Despite the Governor's proposal to
slash funding for cities, the League and
other city affiliate groups succeeded in
minimizing the impact of the proposed `
See Session, page 3 .,
The league sends the Cities
Bulletin to the mayor and to the
:'administrator or clerk. Be sure to
routeit to your councilmembers
and department heads.
1
s-
Contents
1995 legislative session comes to an end .................................. 1
4M Fund update ......................................................................... 3
LMC Policy Committee. Sign-up Sheet ..................................... 4
LMC Policy Committee Members ............................................. 5
Training/Conferences ................................................................. 6
1995 Law Summaries ........................................................... LS 1
Municipal ads ............................................................................ 7
LMCIT'at the conference ........................................................... 7
The Cities Bulletin is a publication of the League of Minnesota Cities and includes
an update of state legislative, administrative, and congressional actions that affect cities. It
also includes reviews of metropolitan area issues by the Association of Metropolitan
Municipalities.
League legislative staff members are available to answer your questions concern-
ing legislation relating to cities.
Executive Director Editor Typesetting and design
Jim Miller Tim Busse Gayle Brodt
League of Minnesota Cities, 3490 Lexington Avenue North, St. Paul, MN 55126
Phone: (612) 490-5600; (&00) 925-1122; Fax: (612) 490-0072; TDD: (612) 490-9030.
Page 2
1995 League of Minnesota Cities
Action Agenda •
See 1995 Law Summaries.
Unfunded Mandates -Oppose additional
unfunded mandates and allow cities not to
comply with current unfunded mandates.
Local Government Aid -Maintain LGA
at a constant, inflation-adjusted level and
increase LGA levels to decrease the
reliance on the property tax.
Homestead Agricultural Credit Aid
Growth -Reinstate the HACA household
growth adjustment factor and apply an
inflationary adjust factor similar to LGA.
Transfers of LGA and HACA to
schools -Protect city aid programs from
further transfer to school aid programs.
Growth Management and Annexation -
Restrict development outside city bound-
aries, facilitate annexation of urban
property, and maintain city authority over
services provided to townships.
TIF Penalties -Eliminate the LGA/ •
HACA aid penalty for TIF use and
reauthorize use of TIF on scattered site
housing.
Personnel -Reform the arbitration
process and veterans preference dis-
charge procedures.
Telecommunications -Preserve local
authority over rights of way and require
state licensing of telecommunications
providers to ensure public service and
use.
Transportation -Increase revenue
.sources for transportation programs, and
grant city. authority to raise funds if
necessary, eliminate all nontransportation
use of highway funding.
Workers' Compensation - Makc
Minnesota's system competitive. with
neighboring states.
•
Printed on recycled paper
LMC Cities Bulletin
L
C]
•
Session, continued from page 1
cuts. In the end, the 1996 HACA
distribution will be reduced by $16
million in a one-yeaz cut shared by
counties, townships, and special taxing
authorities. The 1995 state aid distribu-
tion to cities will remain intact despite
the Governor's proposal to cut current
aid distributions for LGA and HACA
by $57 million this fiscal year. For
1996, the LGA inflation growth factor
remains intact and will raise the LGA
appropriations by approximately $10
million. (The Governor had proposed
eliminating that growth factor to divert
state resources for other purposes.)
Tax increment financing
Despite several onerous proposals
to further restrict the use of tax
increment financing, the final tax bill
included a significantly scaled-back set
of new restrictions. Some new
provisions may actually be preferable
than existing state laws-most notably
the option for cities to choose matching
local contributions for TIF projects,
rather than the application of the LGA/
HACA penalty. Proposals to impose
restriction on pre-1990 TIF districts
were not ultimately adopted.
Taxation of municipal bond
interest
Despite efforts by several key
House members to enact a law to tax
interest on municipal bonds, cities were
successful in defeating the proposal.
The initiative was targeted at a lawsuit
filed in Ohio-that challenges. the
constitutionality of differential taxation
of in state and out-of-state bond
interest. City officials successfully
argued that elimination of the tax
exempt status would substantially
increase local borrowing costs and
ultimately increase local property
taxes. On the House floor, taxation of
municipal bonds was pulled from the
tax bill, while taxation of state bonds
was ultimately adopted by the full
June 9, 1995
House. In the tax conference commit-
tee, the provision to tax state bonds was
ultimately removed because it made no
sense to tax only state governmental
bonds.
Property tax freeze
Eazly in the session, Senate
leadership proposed a freeze on all
local property taxes for one yeaz in
order to constrain property tax in-
creases and to force discussions for
local government finance reforms. The
actual property tax freeze bill was not
offered until late March. This bill
included a "hard" freeze on property
taxes, including a freeze on levies for
growth based on new construction
within a community. Provisions also
reimposed levy limits for pay 1997
taxes to prevent any second-year
increase in property taxes. To ensure
that levies were totally frozen, the bill
also restricted levies for newly issued
debt. The mere thought caused havoc
for city officials who had plans to issue
new debt in 1996. Strong responses of
opposition from city officials across the
state played an essential role in killing
the proposal. (~
4M Fund update
An investment alternative sponsored by
the League of Minnesota Cities
What is the 4M Fund?
The 4M Fund is a short-term money market fund specifically designed to address the cash -
management needs of Minnesota cities and their instrumentalities.The Fund is comprised.
of the highest quality, short-term investments allowable under Minnesota Statute 475.66
and the Fund's objectives are safety, liquidity and a competitive yield. The short term nature -
of the Fund helps to insulate it trom the effect of changes in interest rates. The Fund is ~
managed by Insight Investment Management and Dain Bosworth and served by MBIA -
Municipal Investors Service Corporation. A fixed rate investment program for Fund
participants, offering such alternatives as certificates of deposit and U.S. Treasury and
Agency securities, is also available.
Market update-Week of May 29-June 2, 1995
The bond market responded strongly to last Friday's unemployment report. The news of
much lower than expected non-farm figures was a signal to market participants that the
economy has slowed, and that the Federal Reserve Board will lower the Fed Funds rate
sometime soon. Current yields reflect an ease in the Fed funds rate of 50 basis points to 5.50
percent. This action could happen as soon as August. The Treasury Bill yield curve has
remained flat at between 5.65 and 5.75 percent.
Daily Rates-Week of May 29-June 2, 1995
Interest Average Maturity
Date Rate' of Portfolio
5/29 5.56% 22 days
5/30 5.55% 22 days
5/31 5.57% 18 days
611 5.58% 18 days
6/2 5.56% 18 days
'Interest rates are net of all applicable fees.
Daily interest compounding, free checking, andAutomated Clearing House (ACH) payment systems are
among the conveniences offered by the Fund. For more information, please call Kathy Kardell of Insight
Investment Management at (800) 333-0813 or Shirley Hogan at Dain Bosworth at (800) 388-7125.
Page 3
League of Minnesota Cities
POLICY COMMITTEE SIGN-UP SHEET
If you have the time and want to
participate in establishing the legisla-
tive policies that guide League lobby-
ing efforts at both the state and
federal levels, we encourage you to
indicate your willingness by filling in
the necessary information where
indicated.
Policy committees are established
for atwo-year tenure. Although we are
entering the second year of the com-
mittee process, we invite interested
individuals to join committees for the
1996 policy development process. It is
customary to have one voting represen-
tative per city on a policy committee
and for that reason, page 5 shows the
current committee roster. If there is
already a representative from your city,
you may still participate in committee
-meetings and discussion to help
formulate policy, but only one person
per city will be permitted to vote on
any committee business.
Listed below are the League's
policy committees, scheduled
meeting dates and time, and the major
issue areas that are covered by each
committee:
Improving Local Economies
July 11, August 8, September 12-
9:00 a.m. to 12:00 noon
• Growth Management and
Annexation
• Workers' Compensation
• Telecommunications
• Transportation
• Housing
• Tax Increment Financing
Improving Fiscal Futures
July 12, August 9, September 13-
9:00 a.m. to 12:00 noon
• Local Government Aid
• Homestead Agricultural Credit Aid
• Alternative Revenue Sources
• Property Taxes
-----------
I would like to become a member of the:
~ ~ Improving Fiscal Futures Policy Committee ~ Improving Serv
~ ~ Improving Local Economies Policy Committee ~ Improving Co
'NAME:
~ TITLE:
I CITY:
Improving Service Delivery
July 13, August 10, September
14-9:00 a.m. to 12:00 noon
• Unfunded Mandates
• Personnel Issues
• Elections
• Government Innovation and
Cooperation
A fourth committee, Improving
Community Life, prepared a policy
statement that defines what makes a
community livable and has evolved
into an ongoing committee to identify
other livability issues and make
recommendations to the League's
policy committees. The next meeting
of the Improving Community Life
Committee is on Monday, July 10,
1995, 9:00 a.m. to noon, at the League
offices.
Any and all interested parties are
encouraged to talk to members of any
of the committees, andlor staff, and to
take part in the League's committee
process. !fit
ice Delivery Policy Committee ~
mmunity Life Committee ~
~ ADDRESS:
~ ZIP:
~
~ PHONE NO: FAX NO:
~ ~
Mail (fax) to: ~
Mary Diedrich
League of Minnesota Cities
3490 Lexington Avenue North
Shoreview, MN 55126
~ Phone: 612-490-5600
~ Fax: 612-490-0072 ~
Page 4 LMC Cities Bulletin
.]
•
r1
~J
.]
•
•
1995 Law Summaries
Bills that have been signed into law by the Governor
Crime
Criminal justice finance and law
Chapter 226 is a 180-page law that
provides money far courts and law
enforcement, and makes several
amendments to the state's criminal law
statutes. City-related issues in the law
include:
• Authorizing the nonfelony
enforcement advisory committee
to seek additional funding from
public and private sources.
• Providing $550,000 for statewide
juvenile, misdemeanor, and
domestic abuse information
projects.
• Providing at least $150,000 for
city community violence preven-
tion grants.
• Providing $500,000 for grants to
local law enforcement agencies for
peace officers assigned to schools.
• Providing $400,000 for individual
$5000 grants for agencies giving
conditional offers of employment
to peace officer students.
• Providing $4.6 million to .local
agencies for peace officer continu-
ing education.
• Changing the bulletproof vest
reimbursements statute to elimi-
nate the officers contribution,
require the employing city to pay
up to one-half (now one-third) up
to $300 (now $165.00).
• Requiring state certification for
fireworks display operators,
including city displays.
• Changing the composition of the
POST Board by removing one
small city mayor and adding a
college administrator.
Providing for the automatic
revocation of peace officer licenses
upon a felony "conviction" which
is broadly defined.
Requiring POST to prepare a
model policy governing peace
officers conduct and requiring
local law enforcement agencies to
adopt local policies by July 1,
1996. Vazious effective dates.
Forfeiture law expanded
Chapter 230 allows for the
forfeiture of snowmobiles, all-terrain
vehicles, and motorboats involved with
certain designated DWI-related
offenses. Forfeiture proceedings are
the responsibility of the arresting
agency and the attorney in the jurisdic-
tion in which the designated offense
occurred who is responsible for
prosecuting violations of a designated
offense. Effective August I, 1995.
Amendments to criminal laws,
impounded animals must be kept 10
days before destruction
Chapter 244 contains amendments
to various criminal statutes. The
Department of Public Safety will
develop a criminal alert network to
facilitate the communication of crime
prevention information by electronic
transmission among state agencies, law
enforcement officials, and the private
sector. -
A motor vehicle will be subject to
forfeiture if it is used to flee a peace
officer in the course of an offense
which is established by proof of a
conviction.
The definition of public nuisance
is modified so that proof of two or
more separate behavioral incidents,
instead of requiring criminal convic-
tions within the past twelve months
(shortened from two years), will meet
the definition. Proof exists if the
elements of the conduct constituting
the nuisance are established by clear
and convincing evidence. Notice
requirements for commencing a lawsuit
against owners of buildings alleged to
be nuisances are clarified.
Procedures for service of search
warrants are clarified to allow service
anywhere within the issuing judge's
county.
But probably the most important ''
change is that the time period after
which seized animals may be disposed
of is extended from seven to ten days.
Seizure of an animal raised for food or
fiber products is prohibited unless the
animal has been examined by a
veterinarian pursuant to a warrant, and
the notice and hearing procedures
governing the disposition of seized
animals aze changed. The animal
sections aze effective June 2, 1995.
Other provisions are effective August ~
1, 1995.
L
Economic Development
Audit of city economic development
efforts
Section 44 of Chapter 224 requests
the legislative audit commission to
direct the legislative auditor to conduct
an evaluation of business assistance
programs of state and local government
and report the results to the legislature
by January 15, 1996. The evaluation
must include tax increment financing
assistance, and address other legisla-
tively specified issues.
Omnibus economic development
appropriations
Chapter 224 provides appropria-
tions for the Minnesota Housing
Finance Agency to total $30.1 million
for 1996-97 and $17.5 million for
1997-98. The following programs
1995 Law Summaries
LS 1
Law summaries continued
were funded at these levels:
Rental Housing Assistance for persons
with mental illness: $2.4 million
Affordable Rental Investment: $6.0
million {50 percent units financed
to be outside metro area)
Community Rehabilitation: $5.8
million
Capacity Building Grants: $250,000
Rural and Urban Homesteading:
$372,000
Rental Assistance: $3.0 million
Family Homeless Prevention: $400,000
Mortgage Foreclosure Prevention/
$200,000
Rental Assistance: ~99~99 (line item
veto)
Residential Lead PaindContaminated
Soil Abatement: $568•;989 (line
item veto)
Housing Rehab & Accessibility: $8.6
million
Home Equity Conversion $ 50,000
Livable wageslcorporate welfare
_ Chapter 224, section 58 requires
government agencies that provide
grants or loans in excess of $25,000, or
tax increment financing, to a business,
to set wage level and job creation goals
for the business, which must be met
within two years of receiving the
assistance. Local governments must
report the goals and the results for each
project to DTED, which must publish
the findings each June 1.
Elections
Allocation of election expenses,
schedule of certain city elections,
terms of office
Most of Chapter 8 provides for
school district election changes to
comply with uniform election law,
however, several sections pertain to
city elections. Section 3 replaces
current language regazding the ailoca-
lion of the cost of conducting com-
bined elections with school districts.
Section 3 also provides for the Secre-
tary of State to develop procedures for
allocating costs among counties, cities,
townships, and school districts for
concurrent elections.
Section 5 modifies the schedule for
city general elections and authorizes
cities to hold elections every other year
rather than annually. Home rule
charters are not exempt from this
provision, so this provision applies to
both home rule and statutory cities.
Other provisions in this section
authorize two or four yeaz mayoral
terms, and four year counciimember
terms.
Section 6 modifies the transition
schedule for cities electing more than
one counciimember in each ward. The
transition schedule in such cities
provides for only one counciimember
per wazd to be elected in any general
city election, in order to make the
change from odd to even yeaz elec-
tions, or vice versa.
Sections pertaining to city election
schedules and terms of office are
effective the day following final
enactment. For cities with annual
elections, the transition to even or odd
numbered year elections must be
completed by November, 1998.
Time off to vote in legislator elections
Chapter 20 allows every employee
eligible to vote time off work to vote in
elections to fill vacancies in the offices
of state senator and state representative
This law became effective March 28,
1995.
Election judges
Chapter 34 authorizes elections
judges to serve outside the county. in
which they reside. Effective August 1,
1995.
Presidential primary
Chapter 224, Section 73 delays the
date of the next presidential primary
until after l 999. A future legislature
will determine whether to appropriate
funds for local balloting in the yeaz
2000, which is the next presidential
election year. Effective August 1, 1995.
Environment
Solid waste assessments.
Chapter 111 clarifies some issues
surrounding the state's solid waste
assessment of $2.00 annually per home
and $.60 cents per cubic yard of waste
collected from businesses. The law
addresses churches, apartments
buildings, and other waste generators.
Bag or sticker based collection systems
are addressed by allowing some
flexibility in establishing an equipment
per bag charge ($.03 per 35 gallon bag,
for example). Effective retroactive to
January 1, 1995.
Environmental Appropriations Bill
Chapter 220 contains several
sections applicable to cities, including:
• Providing $.1,946,000 for the clean
water partnership program.
• Creating an advisory task force to
"examine the point source permit-
ting programs in the water quality
division of the MPCA" that will
report by November 30, 1995.
• Requiring an MPCA report by
January 1, 1996, of all wastewater
treatment facility upgrade and
construction projects necessary to
meet existing and proposed water
quality standazds and regulations,
and other related information.
• Providing $28 million in SCORE
block grants to counties.
• Allocating $1.8 million in local
government matching grants for
local park and recreation areas,
natural and scenic areas, trail
linkages, and a conservation
partners wildlife habitat improve-
ment program.
Various effective dates.
r~
•
LS 2 ~- 1995 Law Summaries
Law summaries continued
~1
•
Petrofund amendments
Chapter 240 extends from five to
seven the number of years contractors
must retain documents relating to
cleanups of underground storage tanks,
changes the reimbursable percentage
for cleanup involving residential sites,
requires competitive bidding or
proposals far cleanups seeking reim-
bursement from the petrofund, extends
petrofund eligibility for large tanks
owned by political subdivisions, and
clarifies emergency responder immu-
nity for oil dischazges. Effective May
26, 1995.
Solid waste designation
Chapter 247 is this year's amend-
ments to the Waste Management Act.
The changes are mostly technical, with
fewer policy initiatives. The section of
most importance for cities deals with
waste designation and prohibits public
entities, including cities, from entering
into waste management activities that
aze inconsistent with an approved
county plan except for activities to
reduce waste generation or reuse waste
materials. Before a city enters into an
activity that is lower on the preferred
practices list than that in the county
plan, the city is required to consider its
potential liability in doing so, make a
plan for dealing with it, and submit that
information to the agency. Effective
June 2, 1995.
Finance
Financial audit provisions for certain
cities clarified
Chapter 27 clarifies that legislation
passed last session regazding cities with
a combined office of clerk and trea-
surer and annual revenues for all
governmental and enterprise funds i~+
~~s -~~"'
ex>casa~ef $100,000 are required to
provide an audit to the state auditor
only once every five years, and that the
audit only needs to cover one yeaz, not
all five yeazs. This bill was effective
March 30, 1995.
• Appropriates $2.5 million for ice
arena construction grants of up to
$250,000/arena.
• Appropriates an additional
$790,000 for the Mille Lacs Treaty
litigation.
• Clarifies state zoning laws to
differentiate between building and
land use or zoning permits.
• Increases the state's ability to
collect unpaid debts, including
those owed by cities.
Budget report date moved and
summary budget publication re-
quirements for certain cities modi-
fied
Chapter 134 gives cities another
month to forwazd summary budget
information to the state auditor.
Instead of December 31 of the year
preceding the budget year, the deadline
will be January 31 of each budget yeaz.
Additionally, cities in the metro area
will now have the option of publishing
their summary budget statement in a
city newsletter or other city mailing
sent to all households in the city,
instead of the official newspaper or
qualified newspaper of general
circulation. If the city newsletter is
used, it must be the lead story. If a
mailing is used, the summary budget
statement must be printed on different-
colored paper than other information
contained in the mailing. If either a
newsletter or mailing is used, a copy
must be sent to any nonresident
requesting the summary budget
statement. This law becomes effective
on August I , 1995.
State Department appropriations
bills
Chapter 254 appropriates money
and mandates programs for state
agencies and departments. The bill:
• Requests that the legislative audit
commission consider directing the
legislative auditor to conduct a full
program evaluation of the Depart-
ment of Human Rights in 1995.
Reduces the state general fund
diversion of the building code
surcharge. funds to a little over a
million dollars and transfers excess
surcharges to the building codes
and standards division.
Public finance amendments
Chapter 256 contains the annual
amendments to state laws regulating
the issuance of debt by cities and other
political subdivisions. Counties and
schools aze given powers similar to
cities to bond for ice azenas and other
recreational facilities, tax credits. in
enterprise zones are renamed or
redesignated as incentive grants, and
self-insuring political subdivisions or
their pools are .authorized to issue
bonds for necessary reserves or for the
payment of claims. Ice arena bonding -
procedures are also modified, allowing
for reverse referendums rather than
authorizing elections. Effective June 2,
1995.
Omnibus tax bill
Chapter 264 is this year's omnibus
tax bill It contains many sections
affecting cities.
Aid reduction to local governments
Cities, counties, towns, and special
taxing districts will shaze in a one-time
$16 million cut in HACA in 1996 (see
printout in the June 2 Cities Bulletin for
city-specific reductions).
Economic development -Tax Incre-
ment Financing local contribution
Development authorities will be
able to elect at the time of approving
the TIF plan to exempt the district from
the LGA/HACA penalty by making a
local contribution to the district equal
to a percentage of the annual increment
revenue. Economic development,
1995 Law Summaries
LS 3
Law summaries continued
housing, renewal and renovation
districts would require a 10 percent
contribution. Redevelopment, hazard-
ous substance, soils, and mined
underground space districts would
require a 7.5 percent contribution.
These local government contribu-
tions must be made out of the develop-
ment authority's unrestricted money,
and cannot be made, directly or
indirectly, with tax increments or
certain developer payments. The
maximum. contribution by the develop-
ment authority is limited to two percent
of the adjusted net tax capacity of the
city. If the state contributes to the
projected costs, through a direct grant
or similar incentive, the required local
contribution is reduced by one-half of
the dollar amount of the grant or
incentive. Development authorities
may also request contributions from the
county, school district, or other units of
- government.
Special law duration extensions
Under any duration extension
request to the legislature, development
authorities will have the option of
having the LGA/HACA penalty
applied or having state school aid
recomputed with the TIF district's
captured value, at the time of the
extension, included as if it were pan of
the school district's tax base. This
would have the effect of reducing state
school aid and increasing local prop-
erty taxes on all other property within
the school district boundaries. In'
addition, special law duration exten-
sions will be required to obtain
approval from all affected governmen-
tal units (city or town, county, and
school district).
Duration extensions are granted
for the cities of St. Louis Park,
Hastings, Hopkins, Morris, Oakdale,
and Lake City. Lakefield is authorized
to establish a redevelopment TIF
district to develop property previously
used for a municipal hospital. Crystal,
Fridley, Minneapolis, and St. Paul are
authorized to establish pilot projects for
the creation of housing replacement
TIF projects.
"But-for" test modified
Municipalities will be required to
make a finding .that the taxable market
value of a site will increase if TIF is
used over that which would occur if
TIF was not used. In making this
determination, the present value of the
tax increment subsidies is deducted
from the projected market value of the
TIF development. Qualified housing
districts (those providing assistance to
low-income rental projects) are exempt
from the "but-for" test.
Pooling of tax increment revenues
The amount of increment revenues
that may be spent outside anon-
redevelopment TIF district is limited to
20 percent of the total collections
within the. district. Redevelopment
districts will continue to have the 25
percent limitation.
Restrictions on uses of certain
districts
The use of soils districts is
restricted to pollution or contamination
clean-up. Economic development.
districts may no longer be used for
commercial purposes in cities with
populations under 5,000. These cities
are now subject to the same limitations
as large cities where use is limited to
manufacturing, research and develop-
ment, warehousing, etc. If 80 percent
of an area has bedrock soils conditions,
an economic development district may
be used for correcting soils deficiencies
and for public improvements (previ-
ously, this was a permissible use for all
soils districts).
Green acres, metropolitan agricul-
tural preserves, and open space
Properties that were enrolled in a
deferred assessment program within
the last five years may not be included
within a TIF district. An exception is
made for parcels outside the metro area
to be used for manufacturing
facilities.
Newspaper disclosure
Additional items must now be
included in the annual newspaper
disclosure which is also made manda-
tory. Under current law, newspaper
disclosure is not required as long as an
annual report is filed with the State
Auditor. The. additional items include:
the amount of increment paid to other
governmental units, the amount paid
for administrative costs, the amount of
increment spent outside the TIF
district, and the effect on property taxes
due to the election to pay the fiscal
disparities contribution out of a general
tax on the municipality. Copies of the
newspaper disclosure must be provided
to the State Auditor (rather than the
commissioner of revenue).
Request for certification date •
changed
For consistency with general
property tax timelines, the cut-off date
for submitting certification requests for
parcels to qualify for the next taxes
payable year is changed from July 1 to
June 30.
State oversight
Responsibility for state oversight
of tax increment financing will be
transferred from the Commissioner of
Revenue to the State Auditor. To fund
this new duty, one tenth of one percent
of all increment revenues generated
will be paid to the State Auditor's
office. The State Auditor is authorized
to examine the use of TIF for compli-
ance with the law and to refer violation
information to the county attorney who
may bring an action to enforce the law.
The State Auditor must also prepare
reports of non-compliance to the
governing body who approved the
district and forward them for comments
to the municipality which must respond
in writing within 60 days. These
LS4 1995 Law Summaries
Law summaries continued
•
reports and the comments will then be
sent to the appropriate legislative
.committees.
Effective dates
Most provisions aze effective for
districts for which requests for
certification are made after June 30,
1995. The financial reporting provi-
sions take effect on January 1, 1996.
Changes in the LGA/HACA penalty
aze effective for all hazardous sub-
stance subdistricts and for districts for
which the request for certification is
made after June 30, 1994 so that
existing districts that were subject to
the penalty, have the option to make the
local contribution instead.
Property tax refund as deduction on
tax statement
Homeowners' regulaz ("circuit
breaker") and special ("targeting")
property tax refunds will be reported as
deductions on property tax statements
and will be paid directly. to the county
treasurer. The first yeaz of the new
payment method will be 1998. The
regular property tax refund and the
targeted refund will be itemized
separately on the truth in taxation
notice, and the notice will state that the
deduction for the targeted property tax
refund is contingent upon continuity in
ownership of the property. Even
though the regulaz ("circuit breaker")
property tax refund will be reported on
the property tax statement, qualifying
property owners will continue to file
the M-IPR form with the state.
~-,<' ~- s--~~
~ndoor ice arena
--1G~erials and supplies used for the
construction of indoor ice arenas will
be exempt from the sales tax as long as .
the arena is intended to be used
primarily for youth athletic activities
and it is owned and operated under a
joint powers agreement with the school
district. This provision is effective for
• sales made between June 30, 1995 and
July 1, 1996. Note: The Omnibus
State Government Bill also contains
$2.9 million in available state grants
for new ice arenas.
Wind energy property
The property tax exemption for
wind energy conversion systems is
modified to exempt systems installed
between January 1, 1991 and January
2, 1995, and to exempt systems
constructed after January 1, 1995 only
if they aze located within the same
county and owned by the same owner
and produce in aggregate two or less
megawatts of electricity. The turbines,
transformers, blades, and related
equipment will remain exempt from the
property tax, for those systems installed
on or after January 1, 1995 which are
located in the same county, owned by
the same owner, and produce more than
two megawatts of electricity. Property
taxes will be imposed on foundation
and support pad and 30 percent of the
associated. supporting and protective
structures after a five year exemption
period.
Wind energy tax definitions
"Wind energy system" means a
wind energy conversion system defined
in Minnesota law which is used as an
electric power source. "Area" means
the counties of Lincoln and Pipestone.
"Home county" means the county of
Pipestone. "Municipality" means any
city or town located in the county of
Lincoln or Pipestone. "Qualifying
wind energy system net tax capacity"
includes. the taxable portion of the net
tax capacity of any wind energy system
located in the area installed after
January 1, 1996 and the portion of the
hypothetical net tax capacity that
would be included on a wind energy
system located in the area installed
after January 1, 1991 and before
January 2, 1995, that would be com-
puted if that property was subject to
taxation.
In determining local tax rates for a
municipality in which wind energy
systems are located, the county auditor
will deduct the qualifying wind energy
system net tax capacity (the tax
capacity of the taxable wind energy
systems) from the total net tax capacity
of each municipality containing this
property. The county auditor is
required to determine the municipal
wind energy tax by multiplying each
municipality's tax rate by the net tax
capacity of the taxable wind energy
property located within the municipal-
ity. The sum of these amounts for all
municipalities in the area will be called
the "municipal wind energy distribu-
tion pool." A similar provision exists
for determining county wind energy
tax.
Each municipality within the azea
is entitled to receive a distribution from
the municipal wind energy distribution
pool equal to its proportion of qualify-
ing wind energy net tax capacity
relative to the total for all municipali-
ties in the area. Each county within the
azea is entitled to a similaz distribution
with the additional qualification that
each county. shall be entitled to a
distribution equal to the greater of ten
percent of the total county wind energy
distribution pool or fifty percent of the
county's wind energy tax.
The home county auditor is
responsible for determining for each
municipality and each county in the
area the difference between the
municipality or county wind energy tax
and the wind energy distribution.
These differences must be certified to
the other county by May 16 of each
year. By June 15 and November 15 of
each year, each county treasurer in a
county having a total wind energy tax
in excess of the total wind energy
distribution must pay one-half of the
excess to the other. county in accor-
dance with the home county auditor's
certification. The treasurer in each area
must pay the county and each munici-
pality its wind energy distribution
amounts by June 25 and November 25
of each year.
1995 Law Summaries LS 5
Law summaries continued
transit zone property
Commercial/industria] (class 3a)
property that is constructed under an
initial building permit issued after
January 2, 1996, located within a
transit zone and school district, and not
primazily used for retail or transient
lodging will have a reduced class rate
of four percent on its market value
exceeding $100,000. This tax rate will
also apply to improvements as long as
the other conditions are met. These
changes will be effective for taxes
assessed in 1997, payable in 1998.
A transit zone is defined as the
area within one-quarter mile of a bus
route which has certain hours of .
service within the metro urban service
area and would also include any light
transit route that may be established.
The Metropolitan Council is respon-
sible for producing a map of transit
zones by January 1, 1996 and for
providing the map to all metro-area
assessors.
Reduced class rates for apartment,
manufactured home park, and cabin
property
The class rate on apartment
property is reduced from 3.4 percent to
2.3 percent in cities outside the
metropolitan area and the nine counties
immediately adjacent to the metro area
with populations of less than 5,000.
The property must also be in a city
more than l 5 miles from another city
with a population over 5,000. The class
rate for manufactured home parks will
remain at two percent rather than
increase to 2.3 percent in 1996 as
current law provides. The class rate for
noncommercial seasonal residential
recreational property (cabins) will also
be reduced from two percent to 1.9
percent for taxes payable in 1997 and
to 1.8 percent for taxes payable in 1998
and thereafter for the market value
under $72,000.
In determining HACA, the 3.4
percent class rate will be used on all
LS 6
apartment property so that the amount
paid by the state does not increase as a
result of the above-described reduced
class rate. Instead, the net effect will
be a shift to other property taxpayers
within the taxing districts which
contain the qualifying apartment
property. The relief for cabins will
result in HACA increases to prevent
property tax shifts.
'Truth in Taxation notices
The estimated percentage increase
in Minnesota personal income will no
longer be listed on the Truth in Taxa-
~ lion notice. '
Board of Government Innovation
and Cooperation
The Board will have increased
functions and duties, including the
production of a report to the Governor
and the legislature on unfunded state
mandates by January 15, 1996. $2
million is appropriated for fiscal yeazs
1996 and 1997.
Non-Minnesota bond interest
taxation remedy
If a court decides that the taxation
of non-Minnesota municipal bond
interest violates the Constitution, the
remedy will be to tax the interest on
Minnesota municipal bonds, rather than
to exempt the interest on non-Minne-
sota municipal bonds from taxation.
Waste management services
-For the purpose of clarifying what
is subject to the $2 residential or 60
cents per cubic yard commercial state
solid waste assessment, "mixed
municipal solid waste management
services" is defined as the management
of such waste through the process from
collection to disposal, including
transportation and management at a
waste facility. Additionally, the costs
that are exempt from the general and
local option sales tax provisions of
Minnesota law are specified.
Winona lodging tax proceeds
The city of Winona is authorized
to used 50 percent of the proceeds of
their 1991 special law lodging tax, after
the debt for the Julius C. Wilke
Steamboat Center is retired, to promote
certain, specified tourism activities.
Ag processing facilities
Materials for use in the construc-
tion of certain agricultural processing
plants (at least $8.5 million investment
which exceeds $12,000 per resident of
the city or town and located in a city or
town with a median household income
of less. than $18,000} are exempt from
the sales tax unless the plant is an
ethanol production facility.
Sales tax study
A Sales Tax Advisory Council is
established to study the current sales
tax system.
Homestead cabin property
Cabin property can no longer be
reclassified as a homestead under the
"relative homestead" rules after a four
year period. In order to reclassify
cabin property the owner must actually
occupy it as a homestead.
•i
Separate spouse homesteads
Only partial homestead status will
be received by an owner or a spouse
occupying a residence owned by their
spouse which they. previously occupied
~Jith their spouse if either spouse fails
to include the other spouse's name or
social security numberon their
homestead application. Where the
name and social security number of
both spouses is included on homestead
applications for two separate residences
but one of the applications is not
signed, the owner or spouse will be
deemed to have elected to homestead
the residence for which the application
is signed.
1995 Law Summaries
Law summaries continued
Equalization board meetings
Two Saturday informational
meetings to discuss cabin property
valuations will be required to be held
by a county where at least 25 percent
of the net tax capacity of a city or town
within that county is classified at
noncommercial seasonal residential
recreational property (cabins). These
Saturday meeting dates must be listed
on the notice of property valuation.
Delinquent taxes penalty and interest
distributions
The penalty and interest collected
on delinquent taxes is required to be
distributed to all school districts in the
county rather than only to the school
district in which the property is located.
This is the current practice and thus
merely a clarification in the law.
Delegation of power relating to
abatements
The county board has the power to
delegate the responsibility relating to
abatements to the county auditor unless
the county auditor holds elective office
in which case the county auditor must
concur to the delegation.
Apartment property tax study
A study on possible methods of
providing incentives to improve the
state's stock of rental housing will be
conducted by the Department of
Revenue and the Minnesota Housing
Finance agency. Specifically, the study
will consider a scenario where two
percent class rate is in place for five
assessment years. The study will
identify the estimated impact on the
market value of improvements made to
apartment property which is at least 25
years old and where the value of the
improvements are equal to 20 percent
of the total market value of the prop-
erty proposal as if it were in effect for
taxes payable in 1998. Other policy
alternatives will also be considered and
results will be reported to the House
and Senate Tax. Committee Chairs by
February 15, 1996.
1995 Law Summaries
City aid base
An increase in the portion of city
LGA that is grandfathered is provided
for cities that received additional LGA
in 1995 because of transfers to sewer
and water funds (25 cities qualify). The
qualifying cities will receive a penma-
nent increase in their city aid base in an
amount equal to the additional LGA
they received in 1995. Additionally,
the city aid base for the city of Pillager
will be permanently increased in the
amount of $40,000.
Miscellaneous: Premium tax increase
Insurance premium tax rates will
be increased effective January 1, 1995.
Town and farmers' mutuals and
mutuals with $5 million or less in
assets increases from .5 percent to one
percent. The rates for mutual insurance
companies with assets between $5
million and $1.6 billion on December
31, 1989 will increase from .5 percent
to 1.26 percent. All lines of property-
easualty insurance are included in this
rate increase. The proceeds will be
used primarily to fund fire and police
pensions.
Police and fire aid calculations
Fire state aid equals 107 percent of
reported fire premiums taxes and state
police aid equals 104 percent of
reported automobile premiums taxes.
Fire aid recipients will receive two
percent of fire premiums (minus audit
and exam costs) and one percent of the
premiums of town and farmers'
mutuals and mutuals with $5 million or
less in assets. Police state aid recipi-
ents will receive two percent of
automobile premiums. This provision
is effective for aid paid in 1996.
Tax anticipation certificates
Home rule charter cities aze
authorized to issue tax anticipation
certificates in the same manner
currently available to statutory cities.
Certificates may also be issued in
anticipation of federal and state aids.
Revenue policy initiatives -property
tax and property tax refunds
Certified levy
The clarification is made that the
county auditor does not deduct HACA
from a local'govemment's certified
levy amount, but does deduct the
amount of disparity reduction aid from
the certified levy. (Cities no longer
receive DRA under a 19931aw
change.)
Technical initiatives -property tax
Certifying costs of local assessments
The dates for certifying the costs
of local assessments are changed in
order to conform to the truth-in-
taxation deadlines.
"This Old House"
The clazification is made that
"homes" means owner-occupied units.
Cutoff date for computing HACA
and DRA
A cut-off date of June 30 is
established for computing HACA and
DRA for local governments. Munici-
pal boundaries and status as of June 30
of the year preceding the aid year will
be the basis for the determination of
aids. This provision is effective for
aids payable in 1995 and thereafter.
Metro special taxing districts -truth
in taxation hearings
Hearings are required to be held on
the first Monday in December.
General government
Prompt payment to subcontractors
provision required in municipal
contracts and modification of certain
laws relating to liens and perfor-
mance bonds
Chapter 31 requires that city
contracts contain a provision requiring
LS 7
Law summaries continued
that the primary contractors pay any
subcontractors within 10 days after
receipt of payment from the municipal-
ity for undisputed services provided by
the subcontractors. The contract must
also require that the primary contractor
pay interest of one and one-half percent
per month of any amounts not paid on
time to the.subcontractors, with a
minimun.'monthly interest penalty
payment of $10. Cities are required to
make payment and performance bonds
available for inspection and copying
upon request. Claimants may extend
the time to bring an action to enforce a
claim under a bond beyond the ane
yeaz period provided in Minnesota law
by written stipulation between the
claimant and the surety or by written
notice of a one yeaz extension to the
surety sent via certified mail 90 days
before the expiration of the initial one
year period. The effective date for
most of these provisions is August 1,
1995 and applies to contracts for which
notice of invitations for bids or
requests for proposals aze issued after
July 31, 1995. The payment bonds
provisions are effective retroactively to
August 1, 1994.
Private sales of unclaimed property
allowed and publication require-
ments for public auction sales
Chapter 79 allows cities to conduct
private sales of unclaimed property in
limited circumstances. These sales
must take place through a nonprofit
organization that has a significant
mission of community service. Cities
electing the old option of sale by public
auction will now be required to give 10
days published notice once, in a legal
newspaper published in the city (or, if
none, published in the county) describ-
ing the property to be sold and the time
and place of the sale. Effective August
1, 1995.
Standards for sale and disposal of
junked, abandoned, or unauthorized
vehicles
Chapter 137 authorizes the sale
and disposal of junked, abandoned, and
unauthorized vehicles, all by the new
law. Vehicles which have been
impounded are. generally eligible for
sale and disposal 15 days after notice to
the owner, although a longer waiting
period is specified for unauthorized
vehicles. Public entities may reimburse
themselves for the costs of towing and
storing the vehicle and for all adminis-
trative and notification costs incurred
and shall then hold the remaining
proceeds for 90 days for the owner or
any lienholders to collect prior to
depositing them into the treasury of the
unit of government. Effective August
1, 1995.
V I
State agencies required to report to
legislature on federal mandates
Chapter 57 requires that agencies
administering a program supported in
whole or in part by federal funds or
subject to significant federal mandates
to report certain information to the
legislature by January 1, 1996. The
Commissioner of Finance will deter-
mine which agencies need not report.
The Commissioner will also report on
significant federal mandates that apply
broadly to all agencies and determine
which federal mandates are exempt due
to consistency with state policy.
Effective August 1, 1995.
dopted ordinances to be furnished
to law library
Chapter 105 requires cities,
counties, and towns to furnish copies of
any ordinances they adopt to their local
,county law libraries. Upon request by
cities or towns, the libraries are
required to provide reimbursement of a
..reasonable charge for the copies
furnished. Effective August 1, 1995.
(-
Eminent domain proceedings
Chapter 106 modifies the proce-
dural. requirements for cities to follow
in exercising their power of eminent
domain, particularly with regard to
where notices have to be filed at the
county, who must receive the notices,
and the appeal rights of the parties.
Effective August 1, 1995.
Grants to certain food shelves
authorized
Chapter 109 allows cities to
appropriate money, from the general or
other unrestricted funds, to nonprofit
organizations operating community
food shelves that provide food to the
needy free of charge. Effective May 4,
1995.
Videotape captioning for deaf or
hard of hearing persons required
Chapter 143 prohibits the distribu- •
tion of prerecorded videotapes or
similar audio-visual material to
videotape sellers or service providers
unless they are open-captioned or
close-captioned for the deaf or hard of
hearing. The law applies to materials
produced by a governmental entity for
educational purposes or those of which
more than 500 copies are produced for
release or re-release after June 1, 1997.
City of Chanhassen experimental
authorization of certain bid specifi-
cations for playground equipment
Chapter 153 authorizes the city of
Chanhassen to use certain bid specifi-
cations on an experimental basis for the
purpose of providing more creativity in
playground design and function at the
lowest costs to citizens. The specifica-
tions will have to state the location and
area of the playground, describe its
topography and surface characteristics,
•
LS 8 1995 Law Summaries
Law summaries continued
•
•
the age group to be served. Addition-
ally, bidders will have to submit a
design proposal showing the placement
of equipment. The law also extends to
the acquisition of playground equip-
ment. Upon local approval, the law
will be effective until December 31,
1996. The city will have to submit a
report to the legislature by February 1,
1997 on the effect of this law.
'IYust or escrow accounts authorized
for certain damaged private insured
property
Chapter 170 authorizes municipali-
ties to elect a procedure to ensure that
insured real property which has been
damaged or destroyed by fire or
explosion will be repaired, replaced, or
removed by establishing a trust or
escrow account for a portion of the
insurance settlement (the lesser of 15
percent of the actual cash value of the
property at the time of loss or 15
percent of the settlement). This law will
become effective on January 1, 1996,
and cities which want to use its
provisions must pass a resolution
establishing the trust or escrow account
and notify the state.
Alternative appointment method for
St. Paul charter commission
Chapter 181 provides for an
alternative to Chapter 410 for the City
of St. Paul to authorize the city council
to appoint members to the city charter
commission. The chief judge of the
district court appoints one member
from each city council wazd. Each
councilmember appoints one member
from the ward from which they have
been elected. The mayor appoints the
chair of the charter commission. Four-
year terms aze set for charter commis-
sion members. Vacancies aze to be
filled by the appointing authority. No
local approval of this change is
required. The section is effective the
day following enactment.
Water law technical corrections
Chapter 218 makes several minor
technical amendments to the state's
water laws, most involving the Board
of Water and Soil Resources and the
Department of Natural Resources. One
section allows the commissioner of the
Department of Natural Resources to
issue a state general permit to a
governmental subdivision for classes or
types of activities that have minimal
impact upon public waters under which
more than one project maybe con-
ducted under a single permit. This law
is effective May 25, 1995.
Compatibility of city and soil and
water conservation district offices
Chapter 222 provides that the
office of soil and water conservation
district supervisor is compatible with
the offices of mayor, clerk/treasurer, or
councilmember in statutory or home
rule charter cities of not more than
2,500 population and that one person
may hold both offices. The law also
provides that the person holding both
offices shall refrain from voting or
taking any other formal action on any
matter coming before the soil and water
conservation district board or the city
council that has a substantial effect on
both the soil and water conservation
district and the city. The law specifi-
cally does not apply to cities located in
whole or in part in Anoka, Hennepin,
Ramsey, or Washington County. The
law is effective retroactively to January
1, 1995.
State agency rulemaking
Chapter 233 modifies the state's
administrative procedures act to
increase public involvement in the
agency rule-making process. Notice
provisions are significantly modified,
including allowing interested persons
to register with a state agency for
individualized notice of rule proceed-
ings. Various effective dates, but most
of the provisions will go into effect
January 1, 1996.
Certain advisory councils reinstated
Chapter 246 reinstates the emer-
gency medical services, the plumbing
code, and other Health Department
advisory councils. A work group is
established to study and report to the
legislature on revising the entire
plumbing code for the purposes of
ensuring protection of the public
health. The League is expected to
assist the work group in their efforts.
Effective June 2, 1995.
Omnibus data practices act
Chapter 259 is the omnibus data
practices act for this year. The new law
clarifies that data submitted to the
commissioner by a city has the same
classifications as when held by the city,
and the commissioner's authority to
issue advisory opinions was continued.
Also, data on undercover law
enforcement officer no longer assigned
to an undercover position data become
public unless the officer's personal
safety would be threatened or an active
investigation jeopardized.
For state officials, only upon
completion of an investigation of a
complaint or charge against a state
official, or if the state official resigns or
is terminated while the complaint or
charge is pending, all data relating to
the complaint or charge aze public
unless the investigation would be
jeopardized or confidential sources
would be revealed. This provision
does not apply to city or county
officials as finally passed, but did
include local government officials in
the earlier proposals.
"Booking photographs" are public
data.
The establishment of a pubic
information policy training program is
authorized for the purpose of training
state and local government officials
1995 Law Summaries
LS 9
Law summaries continued
and employees on government data
practices and records retention laws.
Various effective dates apply.
Housing
Metro Section 8 Housing Program
Chapter 112 authorizes the
Metropolitan Council HR.A to operate
joint Section 8 housing programs
cooperatively with local jurisdictions in
the metro area. The authorization is
effective the day following enactment.
Procedures changed for allocating
bonding authority for city housing
programs and planning
Chapter 167 significantly affects
cities with independent or joint housing
programs. The law adds a provision
that new assisted housing be Located in
a city that has entered into a housing
.affordability agreement with the
Metropolitan Council, under which a
city may make loans financed with the
proceeds of mortgage bonds for the
purchase of existing housing. Applica-
tion to the Minnesota Housing Finance
Agency for single-family housing
program bonds are made due from June
15 to June 30 (currently July 1 to July
15). Allocation amounts to be made
by the commissioner to the small issue
pool are reduced from $65 to $55
million while amounts going to the
housing pool are increased from $46 to
$56 million. Application fees for
projects of entitlement issuers will now
have to be submitted to the commis-
sioner with the notice of issuance of
bonds, notice of use of mortgage credit
certificates, and notice of carry
forward. The housing pool allocations
section is clarified to apply to residen-
tial rental projects not restricted to
persons age 55 or older and provides
that if an issuer fails to issue obliga-
tions equal to all or a portion of the
allocation received within 120 days or
returns the allocation to the commis-
sioner, the amount is cancelled and
returned for reallocation through the
housing pool. The total amount of
allocation for mortgage bonds for one
city is limited. Obligations must be
issued within 120 days or the authority
will be cancelled and reallocated. The
remaining balance in the small issue
pool on the effective date, up to $20
million of bonding authority, is
transferred to the housing pool except
that the Minnesota Housing Finance
Agency may accept applications
between June 1 and 7,.1995. Various
effective dates.
.,
Land use/planning/zoning
Notice to municipalities required
prior to licensing of certain youth
detention facilities
Chapter 12 requires the Commis-
sioner of Corrections to give munici-
palities 30 days written notice prior to
issuing licenses to detention facilities
for delinquent youth. The notice must
be given before the first issuance of a
license and annually thereafter only if
the municipality requests annual
notification. Notice is not required for
facilities with a licensed capacity for
six or fewer persons and occupied by
either the licensee or the group foster
home parents. State funding that would
otherwise be made available to the
detention facilities must be withheld
where the required notice is not
provided. This law becomes effective
on August 1, 1995.
Metro area comprehensive planning
modifications
Chapter 176 was sponsored by the
Metropolitan Council to review local
water management plans. Metropolitan
municipalities are required to review
and update their comprehensive plans.
by December 31, 1998 and are prohib-
ited, after August 1, 1945, from
adopting fiscal devices and local
controls which are in conflict with. their
comprehensive plan or any metropoli-
tan system plans. Plans may contain
intergovernmental coordination and
economic development elements and
may designate redevelopment areas.
Land use plans are required to contain
water management plans. Local
governmental units are required to
review and, if n.,cessary, amend their
entire comprehensive plan along with
its fiscal devices and official controls
by December 31, 1998 and at least
once every 10 years thereafter unless
an extension has been obtained from
the Met Council. A report from the
Met Council to the legislation on the
need for local technical and financial
assistance is due January 15, 1996.
Metro area surface and groundwater
management
Chapter 184 provides for the
revision of metropolitan water manage-
merit plans on a priority schedule to be
developed by the Board of Water and
Soil Resources. Watershed manage-
merit organizations will have 24
months from the date of notification to
revise and submit a plan for review.
They may receive aone-year extension
from the Board. The plan should
extend at least five years but no more
than 10 years from the date of Board
approval. Consistency with adopted
county groundwater plans would be
•i
r1
~J
LS 10 1995 Law Summaries
Law summaries continued
required within two years after adop-
tion by the county. Draft plans, in
addition to county, conservation
district, town and city review, will be
subject to a 60 day review and com-
ment period by the Met Council, the
state review agencies, and the Boazd of
Soil and Water Resources. Watershed
management organizations are required
to respond in writing to any concerns
expressed during the review process
within 30 days. Effective August 1,
1995.
Sex offender residential programs
not a permitted use
Section 79 of Chapter 224 modi-
fies the state override of local zoning
for state-licensed residential programs
serving six or fewer persons and
provides that a residential program
whose primary purpose is to treat
juveniles who have violated criminal
statutes relating to sex offenses or have
,, ~ been adjudicated delinquent on the
basis of conduct in violation of
criminal statutes relating to sex offense
shall not be considered a permitted use.
Effective May 26, 1995.
Permit deadlines
._..~-N--~-----~ - .
Chapter 248, Article 19 addresses
state agency and local government
deadlines for issuing zoning, septic
system and metropolitan urban service
area permits approvals. Permit
applications must be determined
complete or incomplete within 10
business days. The. a~ication must be
acted on within 60 days or it will be
deemed approved. A city may receive
an automatic 60 day extension by
providing the applicant written notice
containing the reason for the extension
~- within the 60 day period and specifying
I how much more time is required.
Other extensions are possible with the
applicant's approval. Effective 7uly 1,
}.~--
1995 and applicable to any written
request submitted after that date.
~~ ,a ~_~.
IiN ~ ~ n
~:
=1 1~ t ~~
^ m r°P."~t..~.rw
Metropolitan
Metropolitan Livable Communities
Chapter 255 is the new Metropoli-
tan Livable Communities Act which
creates an economic vitality and
housing initiative primarily for the
metro azea. A Local Housing Incen-
tives Account program is established as
a voluntary program for cities. While
cities can choose not to participate in
the program, they will not be allowed
to apply for state grants to clean up
contaminated sites unless they can
show that they spent money on
affordable housing as if they had been
participating. Cities designate an
amount for affordable housing equal to
the cumulative amount they would
have spent had they participated, or
they agree to deposit their shaze into a
regional pool . The program would
require a portion of property taxes on
high-valued homes be used to build
more affordable and "life-cycle"
housing for certain groups at vazious
stages of life (for example, singles,
young families, the elderly). Cities
choosing to participate in the program
would negotiate housing goals with the
Metropolitan Council.
A second program is the "livable
communities" demonstration project
program which would allow cities to
obtain grants and loans from the Met
Council for certain projects. To pay for
this program, the Met Council is
authorized to levy a tax up to 50
percent of the current Metropolitan
Mosquito Control District's levy and
also provides an annual HACA
payment equal to 50 percent of what
the Mosquito Control District receives.
In total, this amount could equal nearly
$4.5 million available annually for
grants and loans. The Mosquito
Control District's levy authority and
their HACA payment are reduced by
the amounts received by this program.
A third program is intended to assist in
cleaning up polluted lands in the metro
area. Money to fund this program will
come from funds set aside by the Met
Council to help local governments
purchase rights=of-way when building
roads and from the fiscal disparities
pool made up of a portion of each
metro city's commercial-industrial tax
base. More specifically, the program
taps a pool that dates back to the
construction of the Mall of America. It
is estimated that the pool would pay
about $5 million per year to the
program.
Finally, an urban homestead
exemption program is created to
provide income tax breaks for up to
five yeazs for persons moving into
certain blighted neighborhoods in the
metro azea. The Met Council will
designate certain areas as urban
revitalization and stabilization zones by
September 1, 1995. The maximum
exemptions would equal $10,000 for
singles, $12,500 for heads of house-
holds, and $15,000 for mazried couples
filing jointly. Vazious effective dates
apply.
6~R~~
PersonneVpensions
Public pension plan provisions
modified
Chapter 141 is a 58-page law
making several changes to the public
pension plan provisions including the
requirement of suspending or forfeiting
benefits for certain felonious deaths,
recodifying the IRA plan, making
1995 Law Summaries LS 11
Law summaries continued
several individual and small group
pension accommodations, and adminis-
trative changes for vazious plans. The
effective dates are various, many on the
day following enactment.
Child support withholding and
health/dental care coverage
Chapter 207, Article 10, seeks to
ensure coverage of dependent children
under their parent's health plans
pursuant to the support orders, the
automatic withholding of support
payments from wages, and protect
employees from employer discipline as
a result of any withholding order.
Effective August 1, 1995.
Workers' compensation
Chapter 231 is an effort to cut
workers' compensation insurance
premiums by 11.4 percent: Cost of
living adjustments would be cut in half
to two percent, and no annual COLA
would be made for the first four years
from the date of injury. Permanent
total disability payments would only be
made if the employee has at least a i 7
percent permanent partial disability
rating of the whole body or 13 percent
if at least 55 years old without a high
school degree or GED certificate.
Permanent total payments will now
cease at age 67 due to a retirement
presumption. The minimum weekly
compensation is set at $104 and the
maximum.at $615 (an increase of
approximately $I00 per week) for
temporary total disability. Modest
insurance and administration reforms
are also in the new ]aw, but most of
these issues ~vere addressed in the 1992
reform measure. Generally effective
for injuries occurring after October 1,
1995.
MnCare amendments
Chapter 234 is a 210-page law
amending the state's health care plan
for the uninsured. The goal of univer-
sal coverage (less than four percent.
uncovered) is moved back to January
1, 2000. Annual cost containment
reports are required for group health
caze purchasers. Also, all local
government units must provide
expenditure data to the state. The law
requires that representatives of the
affected local government units will be
consulted in establishing definitions,
reporting formats, and reporting time
frames, and the reporting burden is to
be minimized. Eligibility for MnCaze
coverage is broadened, copayment and
deductible provisions of private
policies are capped ($5000/family and
$1000/person respectively).
BMS arbitration lists
Chapter 239 makes technical
amendments to the state's public sector
labor laws, including abolishing the
existing arbitration roster effective
January 1, 1996. The law also requires
the Bureau of Mediation Services to
maintain a list of up to 60 arbitrators
for use by public employers and
exclusive representatives, removes the
uniform baseline determination form
from rule-making requires, requiring
BMS training and technical assistance
regarding the form, and strengthens
arbitration timelines and oversight.
Vazious effective dates.
Study on designation of public
employees as supervisory or confi-
dential
Chapter 248, Article 14 relates to
the preservation of collective bazgain-
ng and requires a study by the legisla-
tive coordinating commission on issues
concerning the determination of which
public employees are supervisory and
which are confidential, as discussed in
two recent decisions by the Minnesota
Court of Appeals. The purpose of the
study is to determine what changes are
needed, through legislation or in the
rules and procedures of the Bureau of
Mediation Services, to maintain an
appropriate balance in the decision-
making process involved in the
designation of public employees.
Conclusions and recommendations will
be made to the legislature by February
1, 1996.
Omnibus child support enforcement
act
Chapter 257 is the omnibus child
support enforcement act. Drivers'
licenses will be suspended for certain
delinquencies, and of si nificance for
cities as employers is a section estab-
lishing acentralized work~reporting ,
system. All employers are required to
sub ertain information (employee's
name, address, social security number,
and date of birth when available, and
employer's name, address, and federal
identification number) to the Depart-
ment of Human Services within 15
calendaz days of the date of hiring. No
a_._~-..__~ --- -
contact will be required for employees
hired for less than two months and
having gross ea.nings of less than $250
per month. Notices of non-compliance.
will be sent to employers who fail to
submit the required information and
additional violations (intentionally
unreported employees) will result in
fines of $50 for the second violation
and $500 for the third violation. The
reporting requirements also apply to
anyone hired as an independent
contractor.
Additionally, no longer will
employers have the initial burden of
requesting whether anewly-hired
individual has court-medical support
obligations that are required by law to
be withheld from income. Individuals
are now required to voluntarily disclose
this information at the time they aze
hired.
For automatic income withholding,
employers need only receive, along
with the applicable statutory provi-
sions, acopy of the withholding
requirements, and are no longer
required to receive a copy of the notice
of income withholding, the court order,
or notice of order.
Lump sum payments, including
bonuses, commissions, or other payer
LS ~~
X995 Law Summaries
Law summaries continued
•
benefits in addition to severance,
accumulated sick or vacation pay, are
required to be paid to the child support
enforcement authority upon certain
conditions. The Work Reporting
System is effective July 1, 1996. Other
sections are effective January 1, 1996.
Additional fire and police amortiza-
tion aid
Chapter 262 allocates one-half of
the excess funds from the PERA
Excess Contributions Holding Account
for additional amortization aid for local
police or salaried firefighter relief
associations. This allocation is in
addition to the existing amortization
and supplemental amortization aid
programs. Local police or salaried
firefighter relief associations with
unfunded accrued liabilities shown in
the actuarial valuation to be prepared
December 31, 1996 will be eligible for
this aid. Also eligible are local police
or salaried firefighter consolidation
accounts that are certified by the
Commissioner of PERA as having for
the current year an additional munici-
pal contribution amount and have
either implemented the pre-July 1,
1993 PERA Police and Fire Plan (if the
consolidation account was in effect
May 24, 1993) or the pre-July 1, 1995
Plan (if consolidation is in effect July
1, 1995). The aid is based on propor-
tional shares of total unfunded actuarial
accrued liabilities of all recipient relief
associations and consolidation account
as of December 31, 1993 or June 30,
1994. These aid amounts will be
allocated on October 1, 1997 and
annually thereafter. Effective the day
following enactment.
New dates are also established for
firefighters' relief associations to begin
collecting information about their
investments and report to the state
auditor. Associations not wholly
invested through the state board of
investments and having assets with a
market value of less than $300,000 will
be required to collect the required
information as of January 1, 1996 and
submit it to the state auditor by October
1, 1997. Effective August 1, 1995.
Public safety
Licensed police officers given the
powers of a notary public for
administering oaths upon informa-
tion to establish probable cause
Chapter 37 provides that peace
officers licensed to administer oaths
upon information submitted to estab-
lish probable cause to judges or judicial
officers shall have the powers of a
notary public. The text of this law
contains'the form of the official
signature in these cases, no stamp is
required. Effective August 1, 1995.
Term of temporary on-sale liquor
licenses extended _^_
Chapter 42 extends the maximum
duration for temporary on-sale liquor
licenses from three consecutive days to
four consecutive days. Additionally,
the number of temporary on-sale 3.2
percent malt liquor licenses that may
issued by a municipality is now
unlimited (the restriction to only three
temporary on-sale intoxicating liquor
licenses remains). The four day
s provision became effective on April 19,
1995 but the lifting of the limit on the
number of temporary on-sale beer
licenses becomes effective August 1,
1995.
Emergency telephone service
Chapter 149 requires that cellular
phone users must be notified by
providers at the time of subscription
and four times per year that 911
emergency calls are routed to state
patrol dispatchers rather than to local
emergency answering centers. When
placing a 911 call, callers will be
required to provide specific informa-
tion regarding their location. Effective
August 1, 1995.
Department of Health enforcement
authority modified
Chapter 165 requires the Commis-
sioner of Health to adopt rules and
enforce existing laws and rules.
governing the design, construction,
installation, operation and maintenance
of public pools, air quality in indoor
areas, and related facilities. Rules
governing fee collection to cover the
cost of reviewing, monitoring, and
inspecting the facilities will also be the
Commissioner's responsibility.
Effective May 16, 1995.
Residential building contractor
licensee standards modified
Chapter 169 clarifies an exemption
from the licensing-requirement, where
denial, suspension, revocation or
censure of a licensee or a civil penalty
may be imposed. The law clarifies that
the contractor's recovery fund is
available to pay claims only against
those licensees who have paid into the
fund while the statutory bonding
requirements still apply to those who
did not. Various effective dates.
Coordination and consolidation for
public safety radio communications
Chapter 195 creates the Metropoli-
tan Radio Board to review and adopt a
regional public safety radio system
communications plan. The plan will
use the 800 megahertz and other
available radio frequencies to develop a
shared regional infrastructure for a
metro-wide public safety radio commu-
nications network. The plan will also
assign frequencies to the network and
subsystems.
All units of local government as
well as private entities eligible to use
the public safety radio communications
plan are to have adequate communica-
1995 Law Summaries
LS 13
Law summaries continued
[ions capacity and intercommunications
capability. The Metropolitan Radio
Board is responsible for determining
the implementation, timing, scope and
performance standards of the system,
as well as the participation of addi-
tional entities.
Within two years all metro
counties, with the participation of cities
and other local government units, are to
complete planning for subs}stems to
ensure coordination and implementa-
tion to meet local service needs. The
cities of Minneapolis, St. Paul, and
Bloomington have the option to
participate in the subsystems or to
develop their own plans. The plans
must be submitted to the regional board
for approval. No city is required to
discazd or modify current radio
communications operations or purchase
new equipment unless the city decides
to use the regional public safety
communications system.
Most sections of the chapter are
effective the day after final enactment.
Emergency medical services
Chapter 207, Article 9, establishes
an emergency medical services
regulatory board which will become
the licensing and regulatory authority
for all public and private ambulance
services in the state, replacing the
Health Department. Effective July 1,
1996.
Food and liquor service licensing
Chapter 207 is the omnibus human
services bill. One provision deals with
the Health Department and state
licensing of mobile food units, seasonal
food stands and food carts, as well as
other food, lodging, and hospitality
establishments. The taw sets new fees,
definitions, and inspection require-
ments. Effective August 1, 1995.
Funding for peace officer training
and libraries
Chapter 212, a law appropriating
money to the higher education institu-
tions, includes a provision that states
that beginning in fiscal year 1998
money for law enforcement education
that is currently provided to the POST
board will be provided through general
fund appropriations of the state. The
amount calculated will be the same
initial base as the previous POST
funding, except that the base funding
for community colleges would be set at
$290,00. The law specifies that
penalty surcharge dollars would
continue to be appropriated to the
POST account for other lawful pur-
poses of the POST boazd.
The law also provides that a task
force is to identify current library
financing sources and make recom-
mendations by February 1, 1996 on
financing structures that aze designed
to promote cooperation and collabora-
tion among all libraries.
Lead abatement
Chapter 213 provides new defini-
tions for abatement for measures
designed to permanently eliminate
lead-based paint hazards
The commissioner of health will
adopt rules for lead inspection, soil and
drinking water sampling, standards for
lead hazard reduction, and methods for
lead in paint, dust, drinking water and
soil for all residences including child
care facilities, playgrounds and
schools. Cities may not have ordi-
nances or regulations governing these
standards that require different stan-
dards or methods than those established
at the state level. The commissioner
will develop a model ordinance for
boards of health to enforce the new
law. Local boards of health are to
enforce lead orders issued under
secondary prevention provisions under
local ordinance or a public health
nuisance.
The commissioner of health is also
directed to develop a primary preven-
tion program for which a priority list of
high risk census tracts is to be identi-
fied. The program is intended to
provide education on the prevention of
lead poisoning, promote swab team
services and lead clean-up equipment,
and publicize grants and the develop-
ment of lead-safe directives. Cities and
other units of local government are
required to follow priorities established
by the department. The commissioner
is to develop educational strategies as a
primary measure to prevent lead
exposure, including the development of
educational materials for the public to
be used in lead hazard reduction
efforts, as well as for property owners,
landlords and tenants. Local govern-
menu must include swab team services
as part of the primary prevention effort
in high risk census tracts
Cities of the first class must
conduct lead inspections to provide for
secondary prevention efforts. Boards
of health serving other cities are also
required to conduct lead inspections,
unless they officially relinquish those
duties to the commissioner of health.
The state is authorized to provide
technical assistance, equipment, lab or
field testing equipment or reimburse-
ment for direct costs of inspection.
Time frames and activities to be
included in the inspection are also
stated in the bill. Effective August 1,
1995.
~ ~ ~ -
Transportation/transit
Cities outside metro area authorized
to provide certain pare-transit
outside their service areas
Chapter 101 allows
nonmetropolitan cities, counties, and
transit commissions and authorities that
provide financial assistance to or
operate public transit to provide para-
transit as a complement to fixed route
service, even if outside its jurisdictional
boundaries, but only by contracting for
the service. Effective on April 29,
1995.
•
LS 14 1995 Law Summaries
Law summaries continued
•
1Yansportation funding
Chapter 265 is most noteworthy
for what it does not contain: a gas tax
increase or other source of substantial
new money for transportation (roads or
transit). While many last minute
proposals were circulated, state leaders
were unahle to reach an agreement.
Consequently, this law will maintain
the status quo or minimize/reduce cuts
in road and transit programs in almost
all transportation areas. Only a few
programs will receive any substantial
increase in state. funds. Municipal
State Aid Streets (M.S.A.S.) will
receive a little more than $176 million
over the next two years.
Other amendments include
constructing an additional lane on I-
394 near Penn Avenue in Minneapolis
and related improvements, requiring
MnDOT to consider alternative means
of financing projects through conges-
tion pricing, tolls, mileage pricing, and
public-private partnerships, and
appropriating almost $900,000 for
nonmetropolitan transportation studies,
exempting roads from MPCA noise
standards, and changing the method of
determining population for M.S.A.S.
purposes. Refunds of drivers' license
fees, all calls from cellular phones,
bulletproof vests, and other issues are
also addressed in the law, which has
various effective dates, but none later
than July 1.
tion plan. The plan ensures customers
will continue to receive affordable
service meeting MPUC quality service
standards and encourages the develop-
ment of alternative forms of telecom-
munication. These alternative forms of
regulation will deregulate certain non-
essential services and the rate of return.
Services that are essential to
residential and business services such
as switched network access, touch-tone
service, 911 emergency service, and
installation and repair, would continue
to be price regulated under the new
plan. Other telephone services would
be flexibly priced or non-price regu-
lated. MPUC is authorized to deter-
mine if existing telephone services
comply with current rules and if rates
are appropriately set prior to the
implementation of the alternative
regulation plan.
Long-distance phone companies
are authorized to furnish interexchange
services. Local phone services are
authorized to offer long-distance
service provided under certification by
MPUC prior to August 1, 1995, or to
offer local phone service certified by
MPUC after August 1, 1995. Local
phone services may also authorize a
provider to furnish local exchange
service.
A local exchange provider that
serves fewer than 50,000 subscribers
may choose to become a small tele-
phone company for at least three years.
The company will not be permitted to
increase rates for essential services for
two years, or until 1998.
Phone companies must comply
with non-discrimination standards.
These standards require services be
provided to "similarly situated per-
sons," that preference not be given
when furnishing services, products or
facilities to affiliates or retailers who
sell. directly to customers, and, that
rates be set that are in line with the
established standards unless competi-
tors can obtain similar services in the
same mazket or geographic area under
comparable terms.
MPUC has the sole authority to
approve or revoke local exchange
service to local subscribers and to
prescribe how these services are
delivered.
Cities and other local units of
government retain the authority to
decide how equipment and facilities are
located on, below, or above public right
of ways and property. Phone compa-
nies are required to repair and restore
streets and other public property to
original condition during installation or
operations, and must provide a map of
facilities within the local telephone
service area.
MPUC is directed to certify
applicants to offer local phone service
prior to August 1, .1996 at which time
negotiations on interconnection are to
take place. In the case where no
agreement is reached, MPUC is to
make temporary arrangements to allow
the new provider to offer services.
Similaz arrangements are to be imple-
mented for emerging competitors to
smaller phone companies.
The Minnesota Department of
Public Service is directed to study how
to ensure citizen access to local
government and public access pro-
gramming provided through emerging
communications technologies like
video dialtone and satellite transmis-
sion, in a manner equivalent to cable
franchise agreements providing public
access channels and supporting facility
operations and public, educational and
government programming. Recom-
mendations are to be made to the 1996
legislature. The Minnesota Department
of Public Service will also study local
franchise fees paid to local government
and make recommendations to the
19961egislature as to the purpose,
amount and use of fees and related
compensation paid to cities.
Provisions of most sections take
effect August 1, 1995 and expire
January 1, 2006.
'i,.~rr
"-. ..j~.
i~ i
Utilities
Alternative regulation of telephone
companies
Chapter 156 authorizes phone
companies to apply to the Minnesota
• Public Utilities Commission (MPUC)
for approval of an alternative regula-
1995 Law Summaries
LS 15
Law summaries continued •
Regulation of sale of local exchange
service territory
Chapter 191 requires the Minne-
sota Public Utilities Commission
(MPUC) to consent to the sale of local
exchange service territory by a phone
company possessing annual revenues
of more than $100 million dollazs.
Customers must be notified at least 90
days prior to the sale of the company's
intent to sell. Customers must also be
informed of the proposed buyer and the
affected local exchange. MPUC must .
hold a public hearing at least 30 days
before deliberation to discuss the
proposed sale. MPUC must not consent
to the sale unless it establishes that at a
minimum, the phone company has
complied with quality of service
standards for the previous year, the
proposed buyer has the financial
resources to maintain service quality,
and there aze sufficiently trained
employees to maintain required service
levels.
Commitments which require the
buyer to maintain the minimum
investment and staffing necessary to
meet quality of service requirements
and any other conditions, must be
satisfied before MPUC consents to the
sale.
Provisions are effective December
31, 1995.
Landlord made bill payer and
customer of record on certain utility
accounts
Chapter 192 defines "single-
metered residential building" as a
multi-unit residential rental building
where utility service for one or more
separate living units and any common
azeas is measured through one meter,
and makes the owner of thesebuild-
ings the bill payer and customer of
record for leasehold contracts entered
into or renewed after August 1, 1995.
A failure, by an owner, to advise utility
providers when service applies to
single-metered residential buildings
will constitute a violation of certain
provisions of Minnesota landlord-
tenant law.
Legislation that did not become law
Gary Carlson, Ann Higgins, Joel Jamnik, Andrea Atherton
The 1995 legislative session was not short of ideas.
Some would have had an adverse impact on municipal
government, while a few would actually have benefitted
cities and city officials. The following is a short list of ideas
that will not become law. Be warned, all of these issues aze
candidates for action by the 1996 legislature.
• Property tax freeze
• Reverse referenda on city and county property tax
increases
• Ethics reform bill
• 1996 Presidential Primary
• State primary in June
• .Authorizing non-partisan election judges
• .Absentee voting reforms
• Non-partisan election judges
• Two-year term of office
• Term limits
• Takings
• Public investments bill
• Elimination of bond interest tax-exempt status
• Sprinklers in high-rises
• Wetlands reforms
•
• Preemption of local authority to regulate the sale of
tobacco
• Preemption of local regulation of shooting ranges
• Transportation funding/gas tax increase
• Tort liability limit increases
• Train whistles in the night
• Minimum wage increase
• Pay equity penalties
• Full funding for state mandates
• State government reorganization
• Abolition of towns
• Governor's $77 million aid cut
• Salary cap for local officials
• Constitutional amendment for school funding
• Tax deferment for seniors
• County and school approval for TIF
• Annexation reforms
• Local public employee pension plan modifications
• Inclusion of certain area-wide homestead property value
in metro area .
• Regulation of government officials' entry onto private
property
LS 16
1995 Law Summaries