Chapter 3
Laws and Rules about Bills


  1. Generally

  2. Provisions Governing the Form of a Bill
    1. Approval of Bill Form by Revisor
    2. Compliance with Rules of Legislature
    3. Title of Bill
    4. Enacting Clause
    5. Bills Should Amend Minnesota Statutes
    6. Forms of Reference
    7. Showing New Language
    8. Removing Old Language
    9. Numbering Sections and Subdivisions
    10. Headnotes
    11. Use of Numbers

  3. Provisions Affecting the Contents of a Bill
    1. Statutes Governing Interpretation of Statutes
    2. Effective Dates
    3. Measuring Time
    4. General Definitions Applying to the Statutes
    5. Minnesota Bill of Rights
      1. Bills of Attainder, Ex Post Facto Laws, and Laws Impairing Contracts
      2. Freedom of Religion
    6. Right to Due Process in Civil Matters
    7. Equal Protection of Law
    8. Prohibition of Special Laws
    9. Separation of Powers
    10. Restrictions on Internal Improvements
    11. Restrictions on Loan of the State's Credit
    12. Debt Limits
    13. Public Purpose Doctrine
    14. Power of Taxation
    15. Appropriations
    16. Administrative Rulemaking
    17. School Lands and Other Public Lands; Restrictions on Disposition
    18. Eminent Domain
    19. University of Minnesota


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1. Generally

Certain fundamental rules in the Minnesota Constitution, Minnesota Statutes, the permanent rules of the House, the permanent rules of the Senate, and the joint rules of the Senate and House of Representatives regulate the form and substantive content of every bill. A drafter should be familiar with the following constitutional provisions, statutes, and legislative rules.

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2. Provisions Governing the Form of a Bill

(a) Approval of Bill Form by Revisor

"No bill shall be introduced until it has been examined and approved by the Revisor of Statutes as to form and compliance with the Joint Rules of the House and Senate and the Rules of the House. Approval as to form shall be endorsed on the bill by the Revisor of Statutes." House Rule 5.01.

The Revisor of Statutes endorses approval by initials on the four jacketed copies of a bill prepared for introduction in the House.

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(b) Compliance with Rules of Legislature

"Each house may determine the rules of its proceedings...." Minn. Const., art. IV, sec. 7.

"Every bill passed in conformity to the rules of each house and the joint rules of the two houses shall be presented to the governor." Minn. Const., art. IV, sec. 23.

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(c) Title of Bill

"The title of each bill shall clearly state its subject and briefly state its purpose." Joint Rule 2.01.

"No law shall embrace more than one subject, which shall be expressed in its title." Minn. Const., art. IV, sec. 17.

"When a bill amends or repeals an existing act, the title shall refer to the chapter, section or subdivision." Joint Rule 2.01.

For a discussion of how to draft bill titles see section 4.2 of this manual.

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(d) Enacting Clause

"The style of all laws of this state shall be: 'Be it enacted by the legislature of the state of Minnesota.'" Minn. Const., art. IV, sec. 22.

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(e) Bills Should Amend Minnesota Statutes

"Reference shall be made to Minnesota Statutes for the provisions appearing therein unless reference to previous session laws is required for some special reason....

A bill for the amendment of a statute shall contain the full text of the section or subdivision to be amended as it appears in the latest edition of Minnesota Statutes unless it has been amended at a later session, in which event it shall contain the full text as amended." Joint Rule 2.01.

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(f) Forms of Reference

"Bills shall refer to Minnesota Statutes as follows:

‘Minnesota Statutes ...., section ....

Bills shall refer to the session laws as follows:

‘Laws ...., chapter ...., section ...." Joint Rule 2.01.

"Wherever in the Minnesota Statutes or any legislative act a reference is made to a subdivision without stating the section of which the subdivision referred to is a part, the reference is to the subdivision of the section in which the reference is made." Minn. Stat., sec. 645.46.

"Wherever in the Minnesota Statutes or any legislative act a reference is made to a paragraph without stating the section and subdivision of which the paragraph referred to is a part, the reference is to the paragraph of the subdivision in which the reference is made." Minn. Stat., sec. 645.47.

"Wherever in the Minnesota Statutes or any legislative act a reference is made to several sections and the section numbers given in the reference are connected by the word "to," the reference includes both the sections whose numbers are given and all intervening sections." Minn. Stat., sec. 645.48.

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(g) Showing New Language

"The words and characters constituting the amending matter shall be inserted in the proper place in the text and underscored." Joint Rule 2.01.

"The text of a new section or subdivision shall also be underscored when a bill amends an existing chapter or section by adding a new section or subdivision." Joint Rule 2.01.

"In the omnibus appropriation bills required by Joint Rule 2.02, sections making an appropriation or transfer and not amending a statute or session law need not have new material underscored." Joint Rule 2.01.

"Before a committee favorably reports upon a bill, the chairman of the committee shall see that the bill conforms to this rule." Joint Rule 2.01.

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(h) Removing Old Language

"The words and characters to be eliminated by the amendment shall be stricken by drawing a line through them." Joint Rule 2.01.

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(i) Numbering Sections and Subdivisions

"If the bill is for an original law and not for an amendment of an existing law, the sections and subdivisions shall be arranged, subdivided, and numbered in like manner as Minnesota Statutes." Joint Rule 2.01.

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(j) Headnotes

"If such a bill assigns to the sections thereof headnotes or identification by the decimal system of numbering used in Minnesota Statutes, such headnotes and decimal identification may be submitted by standing committee chairmen to the Revisor of Statutes for examination. Any such headnotes shall be capital letters enclosed in brackets, and shall be subject to the provisions of Minnesota Statutes, section 648.36." Joint Rule 2.01.

"The headnotes of the sections of any edition of the Minnesota Statutes printed in boldface type are mere catchwords to indicate the contents of the section and are not any part of the statute." Minn. Stat., sec. 3C.08, subd. 3.

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(k) Use of Numbers

"All numbers in titles shall be expressed in figures. All numbers of section or chapter of law shall be in figures. In the body of a bill numbers in excess of ten shall be in figures, except for a special reason they may be written, but when written they shall not be followed by numbers or parenthesis." Joint Rule 2.01.


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3. Provisions Affecting the Contents of a Bill

(a) Statutes Governing Interpretation of Statutes

Every drafter should review the statutory provisions regarding the construction of statutes. They are set out in Minnesota Statutes, chapter 645, and discussed in chapter 2 of this manual.

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(b) Effective Dates

645.02 EFFECTIVE DATE AND TIME OF LAWS.

Each act, except one making appropriations, enacted finally at any session of the legislature takes effect on August 1 next following its final enactment, unless a different date is specified in the act. A special law required to be approved by the local government unit affected before it goes into effect becomes effective as to the approving unit the day following the day on which the certificate of approval prescribed by section 645.021 is filed with the secretary of state, unless a later date is specified in the act. When approval of such a special law is required by two or more local government units before it may become effective, the day after the day when the last of the required certificates is filed is the effective date, unless a later date is specified in the act.

An appropriation act or an act having appropriation items enacted finally at any session of the legislature takes effect at the beginning of the first day of July next following its final enactment, unless a different date is specified in the act.

Each act takes effect at 12:01 a.m. on the day it becomes effective, unless a different time is specified in the act.

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(c) Measuring Time

645.071 STANDARD OF TIME.

Every mention of, or reference to, any hour or time in any law is to be construed with reference to and in accordance with the standard time or advanced standard time provided by federal law. No department of the state government and no county, city or town shall employ any other time or adopt any ordinance or order providing for the use of any other time than the federal standard time or advanced standard time.

645.14 TIME; COMPUTATION OF MONTHS.

When, in any law, the lapse of a number of months before or after a certain day is required, such number of months shall be computed by counting the months from such day, excluding the calendar month in which such day occurs, and including the day of the month in the last months so counted having the same numerical order as the day of the month from which the computation is made, unless there be not so many days in the last month so counted, in which case the period computed shall expire with the last day of the month so counted.

645.15 COMPUTATION OF TIME.

Where the performance or doing of any act, duty, matter, payment, or thing is ordered or directed, and the period of time or duration for the performance or doing thereof is prescribed and fixed by law, the time, except as otherwise provided in sections 645.13 and 645.14, shall be computed so as to exclude the first and include the last day of the prescribed or fixed period or duration of time. When the last day of the period falls on Saturday, Sunday or a legal holiday, that day shall be omitted from the computation.

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(d) General Definitions Applying to the Statutes

Certain common words have been given a defined meaning for purposes of their use in Minnesota Statutes. Chapter 645 of the statutes contains the definitions of a number of common, and some uncommon, terms and phrases that appear throughout the statutes. Many statutes contain special definitions or use terms that are not defined in chapter 645. A complete list of special definitions appears in the index to Minnesota Statutes. Unless a special definition is explicitly made applicable to a statute, however, the administrative agencies and courts which construe and apply that statute will look to chapter 645 for an authoritative definition of the terms found there.

The definitions provided in chapter 645 include the following:

645.44 PARTICULAR WORDS AND PHRASES.

Subdivision 1. Meanings ascribed. The following words, terms, and phrases used in Minnesota Statutes or any legislative act shall have the meanings given them in this section, unless another intention clearly appears.

Subd. 1a. Appellate courts. "Appellate courts" means the supreme court and the court of appeals.

Subd. 1b. Chair. "Chair" includes chairman, chairwoman, and chairperson.

Subd. 2. Court administrator. When used in reference to court procedure, "court administrator" means the court administrator of the court in which the action or proceeding is pending, and "court administrator's office" means that court administrator's office.

Subd. 3. County, town, city. When a county, town or city is mentioned, without any particular description, it imports the particular county, town or city appropriate to the matter.

Subd. 4. Folio. "Folio" means 100 words, counting as a word each number necessarily used; if there be fewer than 100 words in all, the paper shall be computed as one folio; likewise any excess over the last full folio.

Subd. 5. Holidays. "Holiday" includes New Year's Day, January 1; Martin Luther King's Birthday, the third Monday in January; Washington's and Lincoln's Birthday, the third Monday in February; Memorial Day, the last Monday in May; Independence Day, July 4; Labor Day, the first Monday in September; Christopher Columbus Day, the second Monday in October; Veterans Day, November 11; Thanksgiving Day, the fourth Thursday in November; and Christmas Day, December 25; provided, when New Year's Day, January 1; or Independence Day, July 4; or Veterans Day, November 11; or Christmas Day, December 25; falls on Sunday, the following day shall be a holiday and, provided, when New Year's Day, January 1; or Independence Day, July 4; or Veterans Day, November 11; or Christmas Day, December 25; falls on Saturday, the preceding day shall be a holiday. No public business shall be transacted on any holiday, except in cases of necessity and except in cases of public business transacted by the legislature, nor shall any civil process be served thereon. However, for the executive branch of the state of Minnesota, "holiday" also includes the Friday after Thanksgiving but does not include Christopher Columbus Day. Other branches of state government and political subdivisions shall have the option of determining whether Christopher Columbus Day and the Friday after Thanksgiving shall be holidays. Where it is determined that Columbus Day or the Friday after Thanksgiving is not a holiday, public business may be conducted thereon.

Any agreement between a public employer and an employee organization citing Veterans Day as the fourth Monday in October shall be amended to cite Veterans Day as November 11.

Subd. 5a. Public member. "Public member" means a person who is not, or never was, a member of the profession or occupation being licensed or regulated or the spouse of any such person, or a person who does not have or has never had, a material financial interest in either the providing of the professional service being licensed or regulated, or an activity directly related to the profession or occupation being licensed or regulated.

Subd. 6. Oath; affirmation; affirm; sworn. "Oath" includes "affirmation" in all cases where by law an affirmation may be substituted for an oath; and in like cases "swear" includes "affirm" and "sworn" "affirmed."

Subd. 7. Person. "Person" may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations.

Subd. 8. Population; inhabitants. When used in reference to population, "population" and "inhabitants" mean that shown by the last preceding federal decennial census unless otherwise expressly provided.

Subd. 8a. Public waters. "Public waters" means public waters as defined in section 103G.005, subdivision 15, and includes "public waters wetlands" as defined in section 103G.005, subdivision 15a.

Subd. 9. Recorded; filed for record. When an instrument in writing is required or permitted to be filed for record with or recorded by any officer, the same imports that it must be recorded by such officer in a suitable book kept for that purpose, unless otherwise expressly directed.

Subd. 10. Seal. When the seal of a court, public office, or corporation is required by law to be affixed to any paper, the word "seal" includes an impression thereof upon the paper alone, as well as an impression on a wafer, wax, or other substance thereto attached.

Subd. 11. State; United States. When applied to a part of the United States, "state" extends to and includes the District of Columbia and the several territories. "United States" embraces the District of Columbia and territories.

Subd. 12. Sheriff. "Sheriff" may be extended to any person officially performing the duties of a sheriff, either generally or in special cases.

Subd. 13. Time; month; year. "Month" means a calendar month and "year" means a calendar year, unless otherwise expressed; and "year" is equivalent to the expression "year of our Lord."

Subd. 14. Writing. "Written" and "in writing" may include any mode of representing words and letters. The signature of a person, when required by law, (a) must be in the handwriting of the person or, (b) if the person is unable to write, (i) the person's mark or name written by another at the request and in the presence of the person or, (ii) by a rubber stamp facsimile of the person's actual signature, mark, or a signature of the person's name or a mark made by another and adopted for all purposes of signature by the person with a motor disability and affixed in the person's presence.

Subd. 15. May. "May" is permissive.

Subd. 16. Shall. "Shall" is mandatory.

Subd. 17. Violate. "Violate" includes failure to comply with.

Subd. 18. Pledge; mortgage; conditional sale; lien; assignment. "Pledge," "mortgage," "conditional sale," "lien," "assignment," and similar terms used in referring to a security interest in goods include corresponding types of security interests under article 9 of the uniform commercial code.

645.45 DEFINITIONS, CONTINUED.

The following words and phrases, when used in any law enacted after the effective date of Laws 1941, chapter 492, section 45, unless the context clearly indicates otherwise, shall have the meanings ascribed to them in this section:

(1) "Abode," means domicile;

(2) "Action," any proceeding in any court of this state;

(3) "Adult," an individual 18 years of age or over;

(4) "As now provided by law," a reference to the laws in force at the time the law containing the phrase was finally enacted;

(5) "As provided by law," a reference to the laws in force at the time the law containing the phrase was finally enacted;

(6) "Attorney at law," an individual admitted to practice law by a court of record of this state;

(7) "Attorney of record," an attorney at law who is entered on the docket or record of a court as appearing for or representing a party in a legal proceeding;

(8) "Child" or "children" includes children by birth or adoption;

(9) "Day" comprises the time from midnight to the next midnight;

(10) "Fiscal year," the year by or for which accounts are reckoned;

(11) "Hereafter," a reference to the time after the time when the law containing such word takes effect;

(12) "Heretofore," a reference to the time previous to the time when the law containing such word takes effect;

(13) "Judicial sale," a sale conducted by an officer or person authorized for the purpose by some competent tribunal;

(14) "Minor," an individual under the age of 18 years;

(15) "Money," lawful money of the United States;

(16) "Night time," the time from sunset to sunrise;

(17) "Non compos mentis," refers to an individual of unsound mind;

(18) "Notary," a notary public;

(19) "Now," in any provision of a law referring to other laws in force, or to persons in office, or to any facts or circumstances as existing, relates to the laws in force, or to the persons in office, or to the facts or circumstances existing, respectively, on the effective date of such provision;

(20) "Verified," when used in reference to writings, means supported by oath or affirmation.

645.451 DEFINITIONS, CONTINUED.

Subdivision 1. The terms defined in the following subdivisions shall have the meanings given them for the purpose of any statute or law of this state now in force, for the purposes of any statute or law hereinafter enacted unless a different meaning is specifically attached to the terms or the context clearly requires different meaning.

Subd. 2. "Minor" means an individual under the age of 18.

Subd. 3. "Adult" means an individual 18 years of age or older.

Subd. 4. "Minority" means with respect to an individual the period of time during which the individual is a minor.

Subd. 5. "Majority" means with respect to an individual the period of time after the individual reaches the age of 18.

Subd. 6. "Legal age" or "full age" means 18 years of age or older.

645.46 REFERENCE TO SUBDIVISION.

Wherever in the Minnesota Statutes or any legislative act a reference is made to a subdivision without stating the section of which the subdivision referred to is a part, the reference is to the subdivision of the section in which the reference is made.

645.47 REFERENCE TO PARAGRAPH.

Wherever in the Minnesota Statutes or any legislative act a reference is made to a paragraph without stating the section and subdivision of which the paragraph referred to is a part, the reference is to the paragraph of the subdivision in which the reference is made.

645.48 USE OF THE WORD "TO" WHEN REFERRING TO SEVERAL SECTIONS.

Wherever in the Minnesota Statutes or any legislative act a reference is made to several sections and the section numbers given in the reference are connected by the word "to," the reference includes both the sections whose numbers are given and all intervening sections.

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(e) Minnesota Bill of Rights

The Minnesota Bill of Rights (Minn. Const., art. I, secs. 1 to 17) contains a number of provisions similar to the federal Bill of Rights. The following excerpts highlight those sections of article I which might affect general legislation.

(1) Bills of Attainder, Ex Post Facto Laws, and Laws Impairing Contracts

"No bill of attainder, ex post facto law, or any law impairing the obligation of contracts shall be passed, and no conviction shall work corruption of blood or forfeiture of estate." Minn. Const., art. I., sec. 11.

Bills of attainder are legislative acts which inflict punishment upon certain persons or classes of persons without judicial trial or judicial determination of guilt. An example might be an act which legislatively determines that a named corporation is violating the insurance laws or the environmental protection laws of the state and therefore will not be allowed to do business in the state.

An ex post facto law, broadly defined, is an act which makes a past action punishable as a crime under a new provision of law, which deprives an accused of any substantial right to which he or she was entitled at the time of the alleged commission of an offense, or which increases the penalty for an offense after the time the offense was allegedly committed. An example of such an act might be one which adds a surcharge to the drivers license fees of all persons previously convicted of driving while under the influence of alcohol.

The prohibition of laws that impair contracts does not operate predictably. There are many instances in which a state law may change the effect of a contract. Insurance contracts, employment contracts, sale agreements, rental agreements, pension plans, bond agreements, and many other important contractual arrangements run for long periods of time and involve important social issues. If a contract was lawful at the time of its formation, the state cannot arbitrarily change the relationship of the parties, impose new obligations on one or the other of the parties, or abrogate the agreement. Nevertheless, reasonable regulation of commercial activities is almost always upheld by courts.

(2) Freedom of Religion

"The enumeration of rights in this constitution shall not deny or impair others retained by and inherent in the people. The right of every man to worship God according to the dictates of his own conscience shall never be infringed; nor shall any man be compelled to attend, erect or support any place of worship, or to maintain any religious or ecclesiastical ministry, against his consent; nor shall any control of or interference with the rights of conscience be permitted, or any preference be given by law to any religious establishment or mode of worship; but the liberty of conscience hereby secured shall not be so construed as to excuse acts of licentiousness or justify practices inconsistent with the peace or safety of the state, nor shall any money be drawn from the treasury for the benefit of any religious societies or religious or theological seminaries." Minn. Const., art. I, sec. 16.

"No religious test or amount of property shall be required as a qualification for any office of public trust in the state. No religious test or amount of property shall be required as a qualification of any voter at any election in this state; nor shall any person be rendered incompetent to give evidence in any court of law or equity in consequence of his opinion upon the subject of religion." Minn. Const., art. I, sec. 17.

"In no case shall any public money or property be appropriated or used for the support of schools wherein the distinctive doctrines, creeds or tenets of any particular Christian or other religious sect are promulgated or taught." Minn. Const., art. XIII, sec. 2.

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(f) Right to Due Process in Civil Matters

"No member of this state shall be disfranchised or deprived of any of the rights or privileges secured to any citizen thereof, unless by the law of the land or the judgment of his peers. There shall be neither slavery nor involuntary servitude in the state otherwise than as punishment for a crime of which the party has been convicted." Minn. Const., art. I, sec. 2.

"Every person is entitled to a certain remedy in the laws for all injuries or wrongs which he may receive to his person, property or character, and to obtain justice freely and without purchase, completely and without denial, promptly and without delay, conformable to the laws." Minn. Const., art. I, sec. 8.

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(g) Equal Protection of Law

"….. Taxes shall be uniform upon the same class of subjects...." Minn. Const., art. X, sec. 1.

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(h) Prohibition of Special Laws

"In all cases when a general law can be made applicable, a special law shall not be enacted except as provided in section 2. Whether a general law could have been made applicable in any case shall be judicially determined without regard to any legislative assertion on that subject. The legislature shall pass no local or special law authorizing the laying out, opening, altering, vacating or maintaining of roads, highways, streets or alleys; remitting fines, penalties or forfeitures; changing the names of persons, places, lakes or rivers; authorizing the adoption or legitimation of children; changing the law of descent or succession; conferring rights on minors; declaring any named person of age; giving effect to informal or invalid wills or deeds, or affecting the estates of minors or persons under disability; granting divorces; exempting property from taxation or regulating the rate of interest on money; creating private corporations, or amending, renewing, or extending the charters thereof; granting to any private corporation, association, or individual any special or exclusive privilege, immunity or franchise whatever or authorizing public taxation for a private purpose. The inhibitions of local or special laws in this section shall not prevent the passage of general laws on any of the subjects enumerated." Minn. Const., art. XII, sec. 1.

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(i) Separation of Powers

"The powers of government shall be divided into three distinct departments: legislative, executive and judicial. No person or persons belonging to or constituting one of these departments shall exercise any of the powers properly belonging to either of the others except in the instances expressly provided in this constitution." Minn. Const., art. III, sec. 1.

"....[T]he legislature shall have the power to prescribe the bounds of congressional and legislative districts...." Minn. Const., art. IV, sec. 3.

"The governor ….... With the advice and consent of the senate he may a appoint notaries public and other officers provided by law.... He shall fill any vacancy that may occur in the offices of secretary of state, treasurer, auditor, attorney general and the other state and district offices ...." Minn. Const., art. V, sec. 3.

"The judicial power of the state is vested in a supreme court, a court of appeals, if established by the legislature, a district court and such other courts, judicial officers and commissioners with jurisdiction inferior to the district court as the legislature may establish." Minn. Const., art. VI, sec. 1.

"The legislature may provide by law for retirement of all judges and for the extension of the term of any judge who becomes eligible for retirement within three years after expiration of the term for which he is selected. The legislature may also provide for the retirement, removal or other discipline of any judge who is disabled, incompetent or guilty of conduct prejudicial to the administration of justice." Minn. Const., art. VI, sec. 9.

"The house of representatives has the sole power of impeachment...." Minn. Const., art. VIII, sec. 1.

"Every bill passed in conformity to the rules of each house and the joint rules of the two houses shall be presented to the governor. If he approves a bill, he shall sign it, deposit it in the office of the secretary of state and notify the house in which it originated of that fact. If he vetoes a bill, he shall return it with his objections to the house in which it originated. His objections shall be entered in the journal. If, after reconsideration, two-thirds of that house agree to pass the bill, it shall be sent, together with the governor's objections, to the other house, which shall likewise reconsider it. If approved by two-thirds of that house it becomes a law and shall be deposited in the office of the secretary of state. In such cases the votes of both houses shall be determined by yeas and nays, and the names of the persons voting for or against the bill shall be entered in the journal of each house. Any bill not returned by the governor within three days (Sundays excepted) after it is presented to him becomes a law as if he had signed it, unless the legislature by adjournment within that time prevents its return. Any bill passed during the last three days of a session may be presented to the governor during the three days following the day of final adjournment and becomes law if the governor signs and deposits it in the office of the secretary of state within 14 days after the adjournment of the legislature. Any bill passed during the last three days of the session which is not signed and deposited within 14 days after adjournment does not become a law.

"If a bill presented to the governor contains several items of appropriation of money, he may veto one or more of the items while approving the bill. At the time he signs the bill the governor shall append to it a statement of the items he vetoes and the vetoed items shall not take effect. If the legislature is in session, he shall transmit to the house in which the bill originated a copy of the statement, and the items vetoed shall be separately reconsidered. If on reconsideration any item is approved by two-thirds of the members elected to each house, it is a part of the law notwithstanding the objections of the governor." Minn. Const., art. IV, sec. 23.

"Each order, resolution or vote requiring the concurrence of the two houses except such as relate to the business or adjournment of the legislature shall be presented to the governor and is subject to his veto as prescribed in case of a bill." Minn. Const., art. IV, sec. 24.

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(j) Restrictions on Internal Improvements

"The state shall not be a party in carrying on works of internal improvements except as authorized by this constitution." Minn. Const., art. XI, sec. 3.

"Public debt may be contracted and works of internal improvements carried on for the following purposes:

(a) to acquire and to better public land and buildings and other public improvements of a capital nature and to provide money to be appropriated or loaned to any agency or political subdivision of the state for such purposes if the law authorizing the debt is adopted by the vote of at least three-fifths of the members of each house of the legislature;

(b) to repel invasion or suppress insurrection;

(c) to borrow temporarily as authorized in section 6;

(d) to refund outstanding bonds of the state or any of its agencies whether or not the full faith and credit of the state has been pledged for the payment of the bonds;

(e) to establish and maintain highways subject to the limitations of article XIV;

(f) to promote forestation and prevent and abate forest fires, including the compulsory clearing and improving of wild lands whether public or private;

(g) to construct, improve and operate airports and other air navigation facilities;

(h) to develop the state's agricultural resources by extending credit on real estate security in the manner and on the terms and conditions prescribed by law;

(i) to improve and rehabilitate railroad rights-of-way and other rail facilities whether public or private, provided that bonds issued and unpaid shall not at any time exceed $200,000,000 par value; and

(j) as otherwise authorized in this constitution.

As authorized by law political subdivisions may engage in the works permitted by (f), (g), and (i) and contract debt therefor." Minn. Const., art. XI, sec. 5.

The constitutional restriction on state involvement with internal improvements and the constitutional directive that taxes be used only for public purposes are discussed in section 5.2.

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(k) Restrictions on Loan of the State's Credit

"The credit of the state shall not be given or loaned in aid of any individual, association or corporation except as hereinafter provided." Minn. Const., art. XI, sec. 2.

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(l) Debt Limits

"The state may contract public debts for which its full faith, credit and taxing powers may be pledged at the times and in the manner authorized by law, but only for the purposes and subject to the conditions stated in section 5. Public debt includes any obligation payable directly in whole or in part from a tax of state wide application on any class of property, income, transaction or privilege, but does not include any obligation which is payable from revenues other than taxes." Minn. Const., art. XI, sec. 4.

"As authorized by law certificates of indebtedness may be issued during a biennium, commencing on July 1 in each odd-numbered year and ending on and including June 30 in the next odd-numbered year, in anticipation of the collection of taxes levied for and other revenues appropriated to any fund of the state for expenditure during that biennium." Minn. Const., art. XI, sec. 6.

"Public debt other than certificates of indebtedness authorized in section 6 shall be evidenced by the issuance of bonds of the state. All bonds issued under the provisions of this section shall mature not more than 20 years from their respective dates of issue and each law authorizing the issuance of bonds shall distinctly specify the purposes thereof and the maximum amount of the proceeds authorized to be expended for each purpose. The state treasurer shall maintain a separate and special state bond fund on his official books and records. When the full faith and credit of the state has been pledged for the payment of bonds, the state auditor shall levy each year on all taxable property within the state a tax sufficient with the balance then on hand in the fund to pay all principal and interest on bonds issued under this section due and to become due within the ensuing year and to and including July 1 in the second ensuing year. The legislature by law may appropriate funds from any source to the state bond fund. The amount of money actually received and on hand pursuant to appropriations prior to the levy of the tax in any year shall be used to reduce the amount of tax otherwise required to be levied." Minn. Const., art. XI, sec. 7.

"The permanent university fund of this state may be loaned to or invested in the bonds of any county, school district, city or town of this state and in first mortgage loans secured upon improved and cultivated farm lands of this state, but no such investment or loan shall be made until approved by the board of investment; nor shall a loan or investment be made when the bonds to be issued or purchased would make the entire bonded indebtedness exceed 15 percent of the assessed valuation of the taxable property of the county, school district, city or town issuing the bonds; nor shall any farm loan or investment be made when the investment or loan would exceed 30 percent of the actual cash value of the farm land mortgaged to secure the investment; nor shall investments or loans be made at a lower rate of interest than two percent per annum nor for a shorter period than one year nor for a longer period than 30 years." Minn. Const., art. XI, sec. 9.

"The legislature shall not authorize any county, township or municipal corporation to become indebted to aid in the construction or equipment of railroads to any amount that exceeds five per cent of the value of the taxable property within that county, township or municipal corporation." Minn. Const., art. XI, sec. 12.

"The legislature may provide by law for the sale of bonds to carry out the provisions of [article XIV,] section 2 [authorizing a state trunk highway system]. The proceeds shall be paid into the trunk highway fund. Any bonds shall mature serially over a term not exceeding 20 years and shall not be sold for less than par and accrued interest. If the trunk highway fund is not adequate to pay principal and interest of these bonds when due, the legislature may levy on all taxable property of the state in an amount sufficient to meet the deficiency or it may appropriate to the fund money in the state treasury not otherwise appropriated." Minn. Const., art. XIV, sec. 11.

"No [anticipation of tax revenue] certificates shall be issued i in an amount which with interest thereon to maturity, added to the then outstanding certificates against a fund and interest thereon to maturity, will exceed the then unexpended balance of all money which will be credited to that fund during the biennium under existing laws...." Minn. Const., art. XI, sec. 6.

"….. All bonds issued [for public debt, not including anticipation of t tax revenue certificates] under the provisions of this section shall mature not more than 20 years from their respective dates of issue and each law authorizing the issuance of bonds shall distinctly specify the purposes thereof and the maximum amount of the proceeds authorized to be expended for each purpose...." Minn. Const., art. XI, sec. 7.

"The legislature shall not authorize any county, township or municipal corporation to become indebted to aid in the construction or equipment of railroads to any amount that exceeds five per cent of the value of the taxable property within that county, township or municipal corporation." Minn. Const., art. XI, sec. 12.

"The legislature may provide by law for the sale of bonds to carry out the provisions of section 2. The proceeds shall be paid into the trunk highway fund. Any bonds shall mature serially over a term not exceeding 20 years and shall not be sold for less than par and accrued interest. If the trunk highway fund is not adequate to pay principal and interest of these bonds when due, the legislature may levy on all taxable property of the state in an amount sufficient to meet the deficiency or it may appropriate to the fund money in the state treasury not otherwise appropriated." Minn. Const., art. XIV, sec. 11.

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(m) Public Purpose Doctrine

"….. Taxes ... shall be levied ... for public purposes, …...." Minn. Const., art. X, sec. 1.

See discussion under section 5.2 of this manual.

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(n) Power of Taxation

"The power of taxation shall never be surrendered, suspended or contracted away." Minn. Const., art. X, sec. 1.

"….. Taxes shall be uniform upon the same class of subjects and shall b be levied and collected for public purposes...." Minn. Const., art. X, sec. 1.

"….. [P]ublic burying grounds, public school houses, public hospitals, a academies, colleges, universities, all seminaries of learning, all churches, church property, houses of worship, institutions of purely public charity, and public property used exclusively for any public purpose, shall be exempt from taxation except as provided in this section. There may be exempted from taxation personal property not exceeding in value $200 for each household, individual or head of a family, and household goods and farm machinery as the legislature determines. The legislature may authorize municipal corporations to levy and collect assessments for local improvements upon property benefited thereby without regard to cash valuation. The legislature by law may define or limit the property exempt under this section other than churches, houses of worship, and property solely used for educational purposes by academies, colleges, universities and seminaries of learning." Minn. Const., art. X, sec. 1.

"To encourage and promote forestation and reforestation of lands whether owned by private persons or the public, laws may be enacted fixing in advance a definite and limited annual tax on the lands for a term of years and imposing a yield tax on the timber and other forest products at or after the end of the term." Minn. Const., art. X, sec. 2.

"Every person engaged in the business of mining or producing iron ore or other ores in this state shall pay to the state an occupation tax on the valuation of all ores mined or produced, which tax shall be in addition to all other taxes provided by law. The tax is due on the first day of May in the calendar year next following the mining or producing. The valuation of ore for the purpose of determining the amount of tax shall be ascertained as provided by law. Funds derived from the tax shall be used as follows: 50 percent to the state general revenue fund, 40 percent for the support of elementary and secondary schools and ten percent for the general support of the university." Minn. Const., art. X, sec. 3.

"The state may levy an excise tax upon any means or substance for propelling aircraft or for propelling or operating motor or other vehicles or other equipment used for airport purposes and not used on the public highways of this state." Minn. Const., art. X, sec. 4.

"The legislature may tax aircraft using the air space overlying the state on a more onerous basis than other personal property. Any such tax on aircraft shall be in lieu of all other taxes. The legislature may impose the tax on aircraft of companies paying taxes under any gross earnings system of taxation notwithstanding that earnings from the aircraft are included in the earnings on which gross earnings taxes are computed. The law may exempt from taxation aircraft owned by a nonresident of the state temporarily using the air space overlying the state." Minn. Const., art. X, sec. 5.

"Laws of Minnesota 1963, Chapter 81, relating to the taxation of taconite and semi-taconite, and facilities for the mining, production and beneficiation thereof shall not be repealed, modified or amended, nor shall any laws in conflict therewith be valid until November 4, 1989. Laws may be enacted fixing or limiting for a period not extending beyond the year 1990, the tax to be imposed on persons engaged in (1) the mining, production or beneficiation of copper, (2) the mining, production or beneficiation of copper-nickel, or (3) the mining, production or beneficiation of nickel. Taxes imposed on the mining or quarrying of taconite or semi-taconite and on the production of iron ore concentrates therefrom, which are in lieu of a tax on real or personal property, shall not be considered to be occupation, royalty, or excise taxes within the meaning of this amendment." Minn. Const., art. X, sec. 6.

"The legislature by law may tax motor vehicles using the public streets and highways on a more onerous basis than other personal property. Any such tax on motor vehicles shall be in lieu of all other taxes thereon, except wheelage taxes imposed by political subdivisions solely for highway purposes. The legislature may impose this tax on motor vehicles of companies paying taxes under the gross earnings system of taxation notwithstanding that earnings from the vehicles may be included in the earnings on which gross earnings taxes are computed. The proceeds of the tax shall be paid into the highway user tax distribution fund. The law may exempt from taxation any motor vehicle owned by a nonresident of the state properly licensed in another state and transiently or temporarily using the streets and highways of the state." Minn. Const., art. XIV, sec. 9.

"The legislature may levy an excise tax on any means or substance used for propelling vehicles on the public highways of this state or on the business of selling it. The proceeds of the tax shall be paid into the highway user tax distribution fund." Minn. Const., art. XIV, sec. 10.

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(o) Appropriations

"No money shall be paid out of the treasury of this state except in pursuance of an appropriation by law." Minn. Const., art. XI, sec. 1.

3.23 APPROPRIATIONS.

A standing appropriation, within the meaning of this section and section 3.24, is one which sets apart a specified or unspecified and open amount of public money or funds of the state general fund for expenditure for a purpose and makes the amount, or a part of it, available for use continuously and at a time more distant than the end of the second fiscal year after the session of the legislature at which the appropriation is made.

Every appropriation stated to be an "annual appropriation," "payable annually," "appropriated annually," or "annually appropriated," and every appropriation described by equivalent terms or language is a standing appropriation as defined in this section.

3.24 STANDING APPROPRIATION REPEALED.

Every provision of law constituting a standing appropriation of money from the general fund, or derived from revenue of the state, or in any way justifying the continuous payment of money from the treasury of the state, is repealed, except:

(1) a provision for a tax levy or fees or receipts for a purpose and set apart in a special fund; and

(2) the miscellaneous receipts of state educational, charitable, and penal institutions, and the state agricultural society.

Acts containing provisions for standing appropriations shall remain unaffected by this section and section 3.23, except as to the appropriations.

16A.28 TREATMENT OF UNUSED APPROPRIATIONS.

Subdivision 1. Carryforward. Agencies may carry forward unexpended and unencumbered nongrant operating balances from the first year of a biennium into the second year of the biennium.

Subd. 2. Use of carryforward. No money shall be carried forward without the approval of the commissioner of finance.

Subd. 3. Lapse. Any portion of any appropriation not carried forward and remaining unexpended and unencumbered at the close of a fiscal year lapses to the fund from which it was originally appropriated. Any appropriation amounts not carried forward and remaining unexpended and unencumbered at the close of a biennium lapse to the fund from which the appropriation was made.


Subd. 4. Reinstatement; final lapse. The commissioner may reinstate a lapsed appropriation within three months of the lapse. A reinstated appropriation lapses again no later than three months after it first lapsed. A payment under a reinstated appropriation may be made only under section 16A.15, subdivision 3.

Subd. 5. Permanent improvements. An appropriation to acquire or better public land or buildings or other public improvements of a capital nature, including the acquisition of real property does not lapse until the purposes of the appropriation are determined by the commissioner, after consultation with the affected agencies, to be accomplished or abandoned. This subdivision also applies to any part of an appropriation for a fiscal year that has been requisitioned to acquire real property or construct permanent improvements. An appropriation to pay moving expenses lapses at the end of the third fiscal year during which it was made available.

Subd. 6. Canceled October 15. On October 15 all allotments and encumbrances for the last fiscal year shall be canceled unless an agency head certifies to the commissioner that there is an encumbrance for services rendered or goods ordered in the last fiscal year, or certifies that funding will be carried forward under subdivision 1. The commissioner may: reinstate the part of the cancellation needed to meet the certified encumbrance or charge the certified encumbrance against the current year's appropriation.

Subd. 7. Exceptions. Except as otherwise expressly provided by law, subdivisions 1 to 6 apply to every appropriation of a stated sum for a specified purpose or purposes heretofore or hereafter made, but do not, unless expressly provided by law, apply to any fund or balance of a fund derived wholly or partly from special taxes, fees, earnings, fines, federal grants, or other sources that are by law appropriated for special purposes by standing, continuing, or revolving appropriations.

Subd. 8. Historical society. Except as provided by law, an appropriation made to the Minnesota historical society, if not spent during the first year, may be spent during the second year of a biennium. An unexpended balance remaining at the end of a biennium lapses and shall be returned to the fund from which appropriated. An appropriation made to the society for all or part of a biennium may be spent in either year of the biennium.


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(p) Administrative Rulemaking

"Each agency shall adopt, amend, suspend, or repeal its rules in accordance with the procedures specified in sections 14.001 to 14.69, and only pursuant to authority delegated by law and in full compliance with its duties and obligations. If a law authorizing rules is repealed, the rules adopted pursuant to that law are automatically repealed on the effective date of the law's repeal unless there is another law authorizing the rules. Except as provided in section 14.06, sections 14.001 to 14.69 shall not be authority for an agency to adopt, amend, suspend, or repeal rules." Minn. Stat., sec. 14.05, subd. 1.

"Agency means any state officer, board, commission, bureau, division, d department, or tribunal, other than a judicial branch court and the tax court, having a statewide jurisdiction and authorized by law to make rules or to adjudicate contested cases. Agency’ also means the capitol area ar architectural and planning board." Minn. Stat., sec. 14.02, subd. 2.

"‘Rule means every agency statement of general applicability and future effect, including amendments, suspensions, and repeals of rules, adopted to implement or make specific the law enforced or administered by that agency or to govern its organization or procedure." Minn. Stat., sec. 14.02, subd. 4.

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(q) School Lands and Other Public Lands; Restrictions on Disposition

"The permanent school fund of the state consists of (a) the proceeds of lands granted by the United States for the use of schools within each township, (b) the proceeds derived from swamp lands granted to the state, (c) all cash and investments credited to the permanent school fund and to the swamp land fund, and (d) all cash and investments credited to the internal improvement land fund and the lands therein. No portion of these lands shall be sold otherwise than at public sale, and in the manner provided by law. All funds arising from the sale or other disposition of the lands, or income accruing in any way before the sale or disposition thereof, shall be credited to the permanent school fund...." Minn. Const., art. XI, sec. 8.

"As the legislature may provide, any of the public lands of the state, including lands held in trust for any purpose, may be exchanged for any publicly or privately held lands with the unanimous approval of the governor, the attorney general and the state auditor. Lands so acquired shall be subject to the trust, if any, to which the lands exchanged therefor were subject. The state shall reserve all mineral and water power rights in lands transferred by the state." Minn. Const., art. XI, sec. 10.

"School and other public lands of the state better adapted for the production of timber than for agriculture may be set apart as state school forests, or other state forests as the legislature may provide. The legislature may also provide for their management on forestry principles. The net revenue therefrom shall be used for the purposes for which the lands were granted to the state." Minn. Const., art. XI, sec. 11.

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(r) Eminent Domain

"Private property shall not be taken, destroyed or damaged for public use without just compensation therefor, first paid or secured." Minn. Const., art. I, sec. 13.

"Land may be taken for public way and for the purpose of granting to any corporation the franchise of way for public use. In all cases, however, a fair and equitable compensation shall be paid for land and for the damages arising from taking it. All corporations which are common carriers enjoying the right of way in pursuance of the provisions of this section shall be bound to carry the mineral, agricultural and other productions of manufacturers on equal and reasonable terms." Minn. Const., art. XIII, sec. 4.

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(s) University of Minnesota

"All the rights, immunities, franchises and endowments heretofore granted or conferred upon the university of Minnesota are perpetuated unto the university." Minn. Const., art. XIII, sec. 3.

"The government of this University shall be vested in a Board of twelve Regents, who shall be elected by the Legislature...." Laws 1851, ch. 3, sec. 4.

In 1928 the Minnesota Supreme Court announced that Article XIII, section 3, made the University of Minnesota inviolably independent. State ex rel. University of Minnesota v. Chase, 175 Minn. 259, 220 N.W. 951 (1928). With just a little hedging that conclusion has been maintained. State ex rel. Peterson v. Quinlivan, 198 Minn. 65, 268 N.W. 2d 858 (1936), Regents of the University of Minnesota v. Lord, 257 N.W. 2d 796 (Minn. 1977).


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