1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for the general 
  1.4             legislative and administrative expenses of state 
  1.5             government; providing for the transfer of certain 
  1.6             money in the state treasury; fixing and limiting the 
  1.7             amount of fees, penalties, and other costs to be 
  1.8             collected in certain cases; transferring certain 
  1.9             duties and functions; amending Minnesota Statutes 
  1.10            1994, sections 3.855, by adding a subdivision; 3.98, 
  1.11            by adding a subdivision; 3C.02, by adding a 
  1.12            subdivision; 7.09, subdivision 1; 8.16, by adding a 
  1.13            subdivision; 8.31, by adding a subdivision; 15.061; 
  1.14            15.415; 15.50, subdivision 2; 15.91, subdivision 2; 
  1.15            16A.11, by adding a subdivision; 16A.127, subdivision 
  1.16            8; 16A.129, subdivision 3; 16A.28, subdivisions 5 and 
  1.17            6; 16A.40; 16A.57; 16B.06, by adding a subdivision; 
  1.18            16B.17; 16B.19, subdivisions 2 and 10; 16B.42, 
  1.19            subdivision 3; 16B.59; 16B.60, subdivisions 1 and 4; 
  1.20            16B.61, subdivisions 1, 1a, 2, and 5; 16B.63, 
  1.21            subdivision 3; 16B.65, subdivisions 1, 3, 4, and 7; 
  1.22            16B.67; 16B.70; 16B.75; 16D.02, by adding a 
  1.23            subdivision; 16D.04, subdivisions 1 and 3; 16D.06; 
  1.24            16D.08, subdivision 2; 115C.02, by adding a 
  1.25            subdivision; 115C.08, subdivisions 1, 2, and 4; 
  1.26            116G.15; 197.05; 240.011; 240.03; 240.04; 240.155, 
  1.27            subdivision 1; 240.24, subdivision 3; 240.28; 240A.09; 
  1.28            240A.10; 299L.02, subdivision 2; 349.12, subdivision 
  1.29            10; 349.151; 349.153; 349A.02, subdivision 1; 349A.03, 
  1.30            by adding a subdivision; 349A.04; 349A.05; 349A.06, 
  1.31            subdivision 2; 349A.08, subdivisions 5 and 7; 349A.10, 
  1.32            by adding a subdivision; 349A.11; 349A.12, subdivision 
  1.33            4; 352.15, subdivision 3; 366.10; 366.12; 366.16; 
  1.34            394.33, subdivision 2; 394.361, subdivision 3; 
  1.35            462.358, subdivisions 2a, 2b, and 9; 462.359, 
  1.36            subdivision 4; 465.795, subdivision 7; 465.796, 
  1.37            subdivision 2; 465.797, subdivisions 1, 2, 3, 4, 5, 
  1.38            and 6; 465.798; 465.799; 465.801; 465.81, subdivision 
  1.39            1; 465.82, subdivision 2; 465.84; 465.85; 465.87; 
  1.40            473.129, by adding a subdivision; 491A.01, subdivision 
  1.41            8; and 491A.02, subdivision 4; proposing coding for 
  1.42            new law in Minnesota Statutes, chapters 3; 16A; 16B; 
  1.43            16D; 240; 240A; 349; and 465; repealing Minnesota 
  1.44            Statutes 1994, sections 1.22; 3.841; 3.842; 3.843; 
  1.45            3.844; 3.845; 3.846; 3.855, subdivision 1; 3.873; 
  1.46            3.885; 3.887; 115C.02, subdivision 1a; 161.1419; 
  2.1             240.01, subdivision 4; 240.02; 240.04, subdivisions 1 
  2.2             and 1a; 349.12, subdivision 6; 349.151; 349.152, 
  2.3             subdivisions 1 and 2; 349A.01, subdivision 2; 349A.02, 
  2.4             subdivision 8; Laws 1991, chapter 235, article 5, 
  2.5             section 3. 
  2.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.7                              ARTICLE 1
  2.8   Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.9      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.10  appropriated from the general fund, or another fund named, to 
  2.11  the agencies and for the purposes specified in this act, to be 
  2.12  available for the fiscal years indicated for each purpose.  The 
  2.13  figures "1995," "1996," and "1997," where used in this act, mean 
  2.14  that the appropriation or appropriations listed under them are 
  2.15  available for the year ending June 30, 1995, June 30, 1996, or 
  2.16  June 30, 1997, respectively.  
  2.17                          SUMMARY BY FUND 
  2.18                                                       BIENNIAL
  2.19             1995           1996          1997           TOTAL
  2.20  General  $836,000  $  249,282,000 $  246,617,000 $  495,899,000
  2.21  Environmental             208,000        208,000        416,000
  2.22  Landfill Cleanup           75,000         75,000        150,000
  2.23  Highway User            1,682,000      1,687,000      3,369,000
  2.24  State Government 
  2.25  Special Revenue         8,365,000      8,367,000     16,732,000 
  2.26  Workers' Compensation   4,046,000      3,926,000      7,972,000 
  2.27  Local Government 
  2.28  Trust                     431,000        -0-            431,000 
  2.29  TOTAL              $  264,089,000 $  260,880,000 $  524,969,000 
  2.30                                             APPROPRIATIONS 
  2.31                                         Available for the Year 
  2.32                                             Ending June 30 
  2.33                                            1996         1997 
  2.34  Sec. 2.  LEGISLATURE 
  2.35  Subdivision 1.  Total  
  2.36  Appropriation                        $48,078,000    $50,465,000
  2.37  The amounts that may be spent from this 
  2.38  appropriation for each program are 
  2.39  specified in the following subdivisions.
  2.40  Subd. 2.  Senate                      15,822,000     15,822,000
  2.41  Subd. 3.  House of Representatives    20,833,000     22,943,000
  2.42  Subd. 4.  Legislative 
  3.1   Coordinating Commission                6,988,000      7,351,000
  3.2   (a) Legislative Reference Library 
  3.3         1996           1997
  3.4          945,000        945,000
  3.5   (b) Revisor of Statutes 
  3.6        4,302,000      4,673,000
  3.7   (c) Legislative Commission on the 
  3.8   Economic Status of Women 
  3.9          175,000        175,000
  3.10  (d) Legislative Commission 
  3.11  on Pensions and Retirement 
  3.12         514,000        514,000
  3.13  (e) Legislative Commission on    
  3.14  Waste Management 
  3.15         176,000        176,000
  3.16  (f) Legislative Coordinating
  3.17  Commission - Fiscal Agent 
  3.18          66,000         68,000 
  3.19  $66,000 the first year and $68,000 the 
  3.20  second year are reserved for 
  3.21  unanticipated costs of agencies in this 
  3.22  subdivision and subdivision 5.  The 
  3.23  legislative coordinating commission may 
  3.24  transfer necessary amounts from this 
  3.25  appropriation to the appropriations of 
  3.26  the agencies concerned, and the amounts 
  3.27  transferred are appropriated to those 
  3.28  agencies to be spent by them.  If the 
  3.29  appropriation for either year is 
  3.30  insufficient, the appropriation for the 
  3.31  other year is available for it. 
  3.32  (g) Legislative Coordinating 
  3.33  Commission - General Support 
  3.34         810,000        800,000
  3.35  The legislative coordinating commission 
  3.36  shall perform functions formerly 
  3.37  performed by the following 
  3.38  commissions:  legislative commission to 
  3.39  review administrative rules, 
  3.40  legislative commission on employee 
  3.41  relations, legislative commission on 
  3.42  planning and fiscal policy, legislative 
  3.43  water commission, and legislative 
  3.44  commission on children, youth, and 
  3.45  families. 
  3.46  $30,000 for the biennium is for the 
  3.47  legislative coordinating commission to 
  3.48  contract with the Minnesota Foundation 
  3.49  for Better Hearing and Speech for 
  3.50  needed services to ensure that sign 
  3.51  language interpreter services are 
  3.52  available at all times during the 
  3.53  legislative sessions. 
  4.1   $103,000 the first year and $107,000 
  4.2   the second year are for the state 
  4.3   contribution to the National Conference 
  4.4   of State Legislatures. 
  4.5   $91,000 the first year and $93,000 the 
  4.6   second year are for the state 
  4.7   contribution to the Council of State 
  4.8   Governments. 
  4.9   $186,000 the first year and $190,000 
  4.10  the second year are for the 
  4.11  subcommittee on geographic information 
  4.12  systems. 
  4.13  $9,000 the first year and $9,000 the 
  4.14  second year are for the regent 
  4.15  candidate advisory council.  
  4.16  $12,000 the first year and $6,000 the 
  4.17  second year are for the higher 
  4.18  education board candidate advisory 
  4.19  council. 
  4.20  By August 15 of each year, the 
  4.21  legislative coordinating commission 
  4.22  shall make available to the public 
  4.23  expenditures from the legislative 
  4.24  budget for consultant and professional 
  4.25  and technical service contracts, as 
  4.26  defined in Minnesota Statutes, section 
  4.27  16B.17. 
  4.28  Subd. 5.  Legislative Audit 
  4.29  Commission                             4,435,000      4,349,000
  4.30  The amounts that may be spent from this 
  4.31  appropriation for each activity are as 
  4.32  follows:  
  4.33  (a) Legislative Audit Commission 
  4.34          17,000         13,000
  4.35  (b) Legislative Auditor 
  4.36       4,418,000      4,336,000
  4.37  Sec. 3.  GOVERNOR AND 
  4.38  LIEUTENANT GOVERNOR                    3,472,000      3,469,000
  4.39  This appropriation is to fund the 
  4.40  offices of the governor and lieutenant 
  4.41  governor.  
  4.42  $19,000 the first year and $19,000 the 
  4.43  second year are for necessary expenses 
  4.44  in the normal performance of the 
  4.45  governor's and lieutenant governor's 
  4.46  duties for which no other reimbursement 
  4.47  is provided. 
  4.48  $97,000 the first year and $97,000 the 
  4.49  second year are for membership dues of 
  4.50  the National Governors Association. 
  4.51  $20,000 the first year and $20,000 the 
  4.52  second year are for the Council of 
  4.53  Great Lakes Governors. 
  4.54  By August 15 of each year, the 
  5.1   commissioner of finance shall report to 
  5.2   the chairs of the jobs, energy, and 
  5.3   community development finance division 
  5.4   of the senate and the state government 
  5.5   division of the governmental operations 
  5.6   committee house of representatives 
  5.7   those personnel costs incurred by the 
  5.8   office of the governor and the 
  5.9   lieutenant governor that were supported 
  5.10  by appropriations to other agencies 
  5.11  during the previous fiscal year.  The 
  5.12  office of the governor shall inform the 
  5.13  chairs of the divisions before 
  5.14  initiating any interagency agreements. 
  5.15  During the biennium any seminars or 
  5.16  training sessions regarding federal 
  5.17  issues for federal budgeting that are 
  5.18  conducted by the Washington office 
  5.19  shall be made available to legislators 
  5.20  and legislative staff.  The Washington 
  5.21  office shall notify the majority leader 
  5.22  and the minority leader of the senate 
  5.23  and the speaker and the minority leader 
  5.24  of the house of representatives 
  5.25  regarding the timing of the seminars. 
  5.26  Sec. 4.  STATE AUDITOR                7,136,000      7,144,000
  5.27  $78,000 the first year and $78,000 the 
  5.28  second year are for an account the 
  5.29  auditor may bill for costs associated 
  5.30  with conducting single audits of 
  5.31  federal funds.  During the biennium, 
  5.32  this account may be used only when no 
  5.33  other billing mechanism is feasible. 
  5.34  Sec. 5.  STATE TREASURER               2,477,000      2,478,000
  5.35  Sec. 6.  ATTORNEY GENERAL 
  5.36  Subdivision 1.  Total  
  5.37  Appropriation                         25,104,000     22,943,000
  5.38                Summary by Fund
  5.39  General              23,285,000    21,122,000
  5.40  State Government
  5.41  Special Revenue       1,628,000     1,630,000
  5.42  Landfill Cleanup         75,000        75,000
  5.43  Environmental           116,000       116,000
  5.44  The amounts that may be spent from this 
  5.45  appropriation for each program are 
  5.46  specified in the following subdivisions.
  5.47  Subd. 2.  Government Services 
  5.48       4,358,000      4,371,000
  5.49                Summary by Fund
  5.50  General               2,730,000     2,741,000
  5.51  State Government
  5.52  Special Revenue       1,628,000     1,630,000
  5.53  Subd. 3.  Public and 
  5.54  Human Resources
  6.1        3,316,000      3,335,000
  6.2                 Summary by Fund
  6.3   General               3,241,000     3,260,000
  6.4   Landfill Cleanup         75,000        75,000
  6.5   Subd. 4.  Law Enforcement 
  6.6        4,130,000      4,149,000
  6.7                 Summary by Fund
  6.8   General               4,014,000     4,033,000
  6.9   Environmental           116,000       116,000
  6.10  Subd. 5.  Legal Policy and 
  6.11  Administration 
  6.12       6,386,000      4,134,000
  6.13  Subd. 6.  Business Regulation 
  6.14       3,509,000      3,528,000
  6.15  Subd. 7.  Solicitor General  
  6.16       3,405,000      3,426,000
  6.17  Sec. 7.  BOARD OF GOVERNMENT 
  6.18  INNOVATION AND COOPERATION               952,000        927,000
  6.19  Of this amount, $750,000 for fiscal 
  6.20  year 1996 and $750,000 for fiscal year 
  6.21  1997 are for local government grants 
  6.22  and combination incentives authorized 
  6.23  in Minnesota Statutes, sections 465.798 
  6.24  to 465.801, 465.87, and 465.88. 
  6.25  Of this amount, $25,000 in the first 
  6.26  year is for a study of mandates to 
  6.27  local government and for a study of 
  6.28  potential consolidation of counties. 
  6.29  This appropriation includes money for 
  6.30  annual grants to the government 
  6.31  training service. 
  6.32  Sec. 8.  INVESTMENT BOARD              2,092,000      2,093,000
  6.33  $40,000 each year is for local relief 
  6.34  association account management. 
  6.35  Sec. 9.  ADMINISTRATIVE HEARINGS       3,946,000      3,826,000
  6.36  This appropriation is from the workers' 
  6.37  compensation special compensation fund 
  6.38  for considering workers' compensation 
  6.39  claims. 
  6.40  $125,000 the first year is for a mapper 
  6.41  board calendaring system. 
  6.42  $180,000 each year is for additional 
  6.43  clerical support for workers' 
  6.44  compensation judges. 
  6.45  $100,000 each year is for an internship 
  6.46  program in which students at Minnesota 
  7.1   law schools will serve as law clerks 
  7.2   for judges in the workers' compensation 
  7.3   division. 
  7.4   Sec. 10.  OFFICE OF STRATEGIC 
  7.5   AND LONG-RANGE PLANNING                3,993,000      3,967,000
  7.6   Sec. 11.  ADMINISTRATION 
  7.7   Subdivision 1.  Total 
  7.8   Appropriation                         25,832,000     25,829,000
  7.9                 Summary by Fund
  7.10  General              19,345,000    19,342,000
  7.11  State Government 
  7.12  Special Revenue       6,487,000     6,487,000
  7.13  Subd. 2.  Operations Management 
  7.14       3,408,000      3,373,000
  7.15  Subd. 3.  Intertechnologies Group
  7.16                Summary by Fund
  7.17  General               1,253,000     1,253,000
  7.18  State Government 
  7.19  Special Revenue       6,425,000     6,425,000
  7.20  The appropriation from the state 
  7.21  government special revenue fund each 
  7.22  year of $6,425,000 is for recurring 
  7.23  costs of 911 emergency telephone 
  7.24  service.  
  7.25  Subd. 4.  Facilities Management 
  7.26       5,786,000      5,780,000
  7.27  $4,850,000 the first year and 
  7.28  $4,882,000 the second year are for 
  7.29  office space costs of the legislature 
  7.30  and veterans organizations, for 
  7.31  ceremonial space, and for statutorily 
  7.32  free space. 
  7.33  The commissioner shall review the 
  7.34  Uniform Code for Building Conservation, 
  7.35  and report to the legislature by 
  7.36  January 15, 1996, on legislation or 
  7.37  rules needed to implement this code in 
  7.38  a manner that is consistent with the 
  7.39  state building code. 
  7.40  During the biennium ending June 30, 
  7.41  1997, the house of representatives 
  7.42  rules committee shall contract for 
  7.43  operation of the cafeteria in the State 
  7.44  Office Building. 
  7.45  The committee on rules in the house of 
  7.46  representatives shall convene a task 
  7.47  force, not to exceed ten members, of 
  7.48  legislators and employees in the State 
  7.49  Office Building to solicit proposals 
  7.50  and select a vendor for food and 
  7.51  beverage services in the State Office 
  7.52  Building.  The vendor selected shall 
  8.1   commence operations upon completion of 
  8.2   the current food and beverage service 
  8.3   contract.  
  8.4   During the year ending June 30, 1996, 
  8.5   the central motor pool shall not 
  8.6   purchase any new vehicles and shall not 
  8.7   sell any vehicles with less 100,000 
  8.8   miles.  The house and senate 
  8.9   governmental operations committees 
  8.10  shall study and report to the 
  8.11  legislature by January 15, 1996, on the 
  8.12  desirability of leasing versus 
  8.13  purchasing state vehicles, and on 
  8.14  maintenance costs for vehicles under 
  8.15  the current system. 
  8.16  $20,000 the first year is to clean, 
  8.17  refit, and rehabilitate the statue of 
  8.18  Leif Erikson on the grounds of the 
  8.19  state capitol. 
  8.20  Subd. 5.  Administrative Management 
  8.21                Summary by Fund
  8.22  General               2,149,000     2,154,000
  8.23  State Government 
  8.24  Special Revenue          62,000        62,000
  8.25  $2,000 the first year and $2,000 the 
  8.26  second year are for the state 
  8.27  employees' band. 
  8.28  A biennial appropriation of $124,000 to 
  8.29  the commissioner of administration 
  8.30  shall be used for processing and 
  8.31  oversight of grants and allocations in 
  8.32  the oil overcharge program.  This 
  8.33  appropriation is from oil overcharge 
  8.34  money, as defined in Minnesota 
  8.35  Statutes, section 4.071, in the special 
  8.36  revenue fund. 
  8.37  The targeted group purchasing study 
  8.38  required by Minnesota Statutes, section 
  8.39  16B.19, subdivision 2b, need not be 
  8.40  completed during the biennium ending 
  8.41  June 30, 1997. 
  8.42  Subd. 6.  Information Policy Office
  8.43       1,334,000      1,334,000
  8.44  $668,000 each year is for costs 
  8.45  associated with the information 
  8.46  strategies and planning activity of the 
  8.47  information policy office.  The 
  8.48  intertechnologies revolving fund must 
  8.49  pay for $668,000 each year for costs 
  8.50  associated with the information 
  8.51  strategies and planning activity of the 
  8.52  information policy office. 
  8.53  The information policy office, with the 
  8.54  advice of the attorney general, shall 
  8.55  monitor all computer systems 
  8.56  development projects conducted by state 
  8.57  agencies to assure that full 
  8.58  performance of contract requirements is 
  9.1   achieved and that any remedies provided 
  9.2   in such contracts for nonperformance or 
  9.3   inadequate performance are fully 
  9.4   pursued.  The information policy office 
  9.5   and the attorney general shall report 
  9.6   to the legislature by January 15, 1996, 
  9.7   on performance of contract requirements 
  9.8   related to large systems such as the 
  9.9   statewide systems project, and 
  9.10  Minnesota Medicaid Management 
  9.11  Information System, and the information 
  9.12  systems related to drivers' licenses. 
  9.13  Subd. 7.  Management Analysis 
  9.14         565,000        566,000
  9.15  Subd. 8.  Public Broadcasting 
  9.16       2,324,000      2,324,000
  9.17  $1,650,000 the first year and 
  9.18  $1,650,000 the second year are for 
  9.19  public television. 
  9.20  $674,000 the first year and $674,000 
  9.21  the second year are for public radio. 
  9.22  Each public television station and 
  9.23  public radio station or network must 
  9.24  report to the commissioner of 
  9.25  administration the salary of any 
  9.26  employee whose annual salary exceeds 
  9.27  the annual salary of the governor.  For 
  9.28  purposes of this paragraph, "salary" 
  9.29  includes salary from any nonprofit or 
  9.30  for-profit corporation that is 
  9.31  affiliated with the public television 
  9.32  station or public radio station or 
  9.33  network.  The commissioner of 
  9.34  administration shall calculate for each 
  9.35  station or network the sum, for all 
  9.36  employees of the station or network, of 
  9.37  salary in excess of the salary of the 
  9.38  governor.  Any public television 
  9.39  station or public radio station or 
  9.40  network that does not disclose salaries 
  9.41  as required by this section shall not 
  9.42  receive money under this section. 
  9.43  $30,000 each year is for a grant to the 
  9.44  association of Minnesota public 
  9.45  education radio stations for station 
  9.46  KMOJ.  This money may be used for 
  9.47  equipment. 
  9.48  Sec. 12.  INTERGOVERNMENTAL INFORMATION 
  9.49  SYSTEMS ADVISORY COUNCIL                 186,000        187,000
  9.50  The appropriation for a local 
  9.51  government financial reporting system, 
  9.52  pursuant to Laws 1994, chapter 587, 
  9.53  article 3, section 3, clause (5), is 
  9.54  available until expended. 
  9.55  The amounts must be subtracted from the 
  9.56  amount that would otherwise be payable 
  9.57  to local government aid under Minnesota 
  9.58  Statutes, chapter 477A, in order to 
  9.59  fund the intergovernmental information 
  9.60  systems advisory council. 
 10.1   Sec. 13.  CAPITOL AREA ARCHITECTURAL 
 10.2   AND PLANNING BOARD                       283,000        287,000
 10.3   Preliminary planning and programming 
 10.4   for a human development center in or 
 10.5   near the capitol area of St. Paul may 
 10.6   be done in collaboration with the city 
 10.7   of St. Paul foundations including, but 
 10.8   not limited to, the Minnesota Education 
 10.9   Foundation, the private sector, and 
 10.10  appropriate state departments 
 10.11  including, but not limited to, health, 
 10.12  education, and human services.  The 
 10.13  focus of the center will be on the 
 10.14  development of the human person.  The 
 10.15  center is intended to serve as a 
 10.16  research and demonstration center and 
 10.17  will be the result of a partnership 
 10.18  between the public and private sector.  
 10.19  The board may report the results of its 
 10.20  studies to the governor and legislature 
 10.21  no later than December 15, 1996. 
 10.22  $25,000 each year is to create a 
 10.23  Minnesota Korean war veterans memorial 
 10.24  on the capitol grounds.  This 
 10.25  appropriation is available until 
 10.26  expended. 
 10.27  In creating the memorial, the board may 
 10.28  accept money from nonstate sources.  
 10.29  The board shall select a site for the 
 10.30  memorial and conduct a selection 
 10.31  process to award the contracts for 
 10.32  design and construction of the 
 10.33  memorial.  No contract for construction 
 10.34  shall be entered into by the board 
 10.35  until sufficient funds are available to 
 10.36  complete the construction of the 
 10.37  memorial and the board has received 
 10.38  recommendations on the cost, design, 
 10.39  and placement of the memorial from the 
 10.40  chairs of the house appropriations and 
 10.41  senate finance committees. 
 10.42  Sec. 14.  FINANCE 
 10.43  Subdivision 1.  Total 
 10.44  Appropriation                         20,108,000     20,326,000
 10.45                Summary by Fund
 10.46  General              20,003,000    20,326,000
 10.47  Local Government
 10.48  Trust                   105,000       -0-   
 10.49  The amounts that may be spent from this 
 10.50  appropriation for each program are 
 10.51  specified in the following subdivisions.
 10.52  Subd. 2.  Accounting Services  
 10.53       3,986,000      4,003,000
 10.54  Subd. 3.  Accounts Receivable Project 
 10.55       4,152,000      3,552,000
 10.56  $600,000 the first year is for 
 10.57  modification and enhancement of the 
 11.1   accounts receivable system. 
 11.2   The commissioner of finance may 
 11.3   transfer money, as deemed necessary, to 
 11.4   other state agencies participating in 
 11.5   the accounts receivable project. 
 11.6   Subd. 4.  Budget Services 
 11.7        2,026,000      2,026,000
 11.8                 Summary by Fund
 11.9   General               1,921,000     2,026,000
 11.10  Local Government
 11.11  Trust                   105,000       -0-   
 11.12  Subd. 5.  Economic Analysis  
 11.13         299,000        308,000
 11.14  Subd. 6.  Information Services 
 11.15       8,920,000      9,643,000
 11.16  $300,000 is for public information 
 11.17  television transmission of legislative 
 11.18  activities.  $150,000 may be disbursed 
 11.19  in the fiscal year that ends June 30, 
 11.20  1996, and $150,000 in the fiscal year 
 11.21  that ends June 30, 1997.  At least one 
 11.22  half must go for programming to be 
 11.23  broadcast in rural Minnesota. 
 11.24  Subd. 7.  Management Services 
 11.25       1,575,000      1,644,000
 11.26  During the biennium ending June 30, 
 11.27  1997, to the extent feasible and 
 11.28  cost-effective, any new jobs created in 
 11.29  the debt collections entity must be 
 11.30  located in a portion of greater 
 11.31  Minnesota that had a population loss of 
 11.32  five percent or more between the 1980 
 11.33  and 1990 census. 
 11.34  Subd. 8.  General Reduction 
 11.35  If federal funding for programs is 
 11.36  reduced or eliminated during the 
 11.37  biennium ending June 30, 1997, the 
 11.38  commissioner shall assure to the extent 
 11.39  possible that the costs of reducing or 
 11.40  terminating the programs supported by 
 11.41  those funds are paid by federal funds. 
 11.42  The commissioner of finance must reduce 
 11.43  appropriations for executive branch 
 11.44  agency operations by $19,200,000 during 
 11.45  the biennium ending June 30, 1997.  At 
 11.46  least $9,200,000 of this reduction must 
 11.47  be from the general fund.  
 11.48  The commissioner of finance shall make 
 11.49  reductions of $2,000,000 from programs 
 11.50  funded in this section.  The reductions 
 11.51  may be made in either year of the 
 11.52  biennium. 
 12.1   Sec. 15.  EMPLOYEE RELATIONS 
 12.2   Subdivision 1.  Total 
 12.3   Appropriation                          8,162,000      8,222,000
 12.4   The amounts that may be spent from this 
 12.5   appropriation for each program are 
 12.6   specified in the following subdivisions.
 12.7   Subd. 2.  Human Resources
 12.8   Management
 12.9        7,054,000      7,064,000
 12.10  $500,000 each year is for a one-time 
 12.11  redesign of the state's human resources 
 12.12  programs, processes and policies, 
 12.13  including, but not limited to, 
 12.14  improving the employee performance 
 12.15  management process, recruitment and 
 12.16  hiring, retraining and deployment 
 12.17  capabilities, and classification of 
 12.18  state positions.  Of this amount, up to 
 12.19  $200,000 each year may be disbursed in 
 12.20  the form of grants to state agencies 
 12.21  for pilot projects under the direction 
 12.22  of the commissioner of employee 
 12.23  relations. 
 12.24  $300,000 each year is to expand and 
 12.25  target state workforce diversity 
 12.26  efforts.  These funds are to support 
 12.27  expanded, dedicated functions serving 
 12.28  protected groups in obtaining and 
 12.29  retaining state employment, and secure 
 12.30  greater opportunities for advancement 
 12.31  within state employment ranks for 
 12.32  under-represented groups.  The 
 12.33  commissioner must allocate these funds 
 12.34  exclusively to the purposes described 
 12.35  in the diversity-related budget 
 12.36  initiative in the governor's proposed 
 12.37  biennial budget for the department of 
 12.38  employee relations for the biennium 
 12.39  ending June 30, 1997.  The 1995, 1996, 
 12.40  1997, and 1998 annual performance 
 12.41  reports prepared by the commissioner 
 12.42  under Minnesota Statutes, sections 
 12.43  15.90 to 15.92, must contain a separate 
 12.44  section presenting the agency's 
 12.45  activities and the outcomes 
 12.46  attributable to implementation of the 
 12.47  diversity functions expanded or 
 12.48  improved pursuant to this 
 12.49  appropriation.  The commissioner of 
 12.50  finance shall include these amounts 
 12.51  when determining the base appropriation 
 12.52  level for the department of employee 
 12.53  relations for the biennium ending June 
 12.54  30, 1999. 
 12.55  Any unexpended balance on June 30, 
 12.56  1995, from the appropriations in Laws 
 12.57  1993, chapter 192, section 18, 
 12.58  subdivision 2, for implementation of 
 12.59  human resources management projects 
 12.60  does not cancel but is available for 
 12.61  expenditure in the 1996-1997 biennium. 
 12.62  During the biennium ending June 30, 
 12.63  1997, no two federated funding 
 13.1   campaigns that are related 
 13.2   organizations, as defined in Minnesota 
 13.3   Statutes, section 317A.011, subdivision 
 13.4   18, may be registered to participate in 
 13.5   the state employee combined charitable 
 13.6   campaign. 
 13.7   If a state agency is to be abolished, 
 13.8   the classified positions of the agency 
 13.9   to be abolished with its incumbent 
 13.10  employees shall be transferred as 
 13.11  provided by Minnesota Statutes, section 
 13.12  15.039, subdivision 7.  If classified 
 13.13  employees of an agency to be abolished 
 13.14  are not specifically transferred to 
 13.15  another state agency, any involuntary 
 13.16  layoffs of the classified employees 
 13.17  must be negotiated with exclusive 
 13.18  representatives of the affected 
 13.19  employees in accordance with Minnesota 
 13.20  Statutes, section 43A.045, before 
 13.21  layoffs may occur. 
 13.22  State agencies must demonstrate that 
 13.23  they cannot use available staff before 
 13.24  hiring outside consultants or 
 13.25  services.  As state agencies implement 
 13.26  reductions in their operating budgets 
 13.27  in the biennium ending June 30, 1997, 
 13.28  agencies shall give priority to 
 13.29  reducing spending on professional and 
 13.30  technical contracts before laying off 
 13.31  permanent employees.  Agencies must 
 13.32  report on the specific manner in which 
 13.33  this directive is implemented to the 
 13.34  senate finance and house of 
 13.35  representatives ways and means 
 13.36  committees by February 1, 1996, and 
 13.37  February 1, 1997.  Where outside 
 13.38  consultants and services are necessary, 
 13.39  agencies are encouraged to negotiate 
 13.40  contracts that will involve permanent 
 13.41  staff so as to upgrade and maximize 
 13.42  training of state personnel.  Money 
 13.43  spent on outside consultants must be 
 13.44  reported by February 1, 1997, to the 
 13.45  senate finance and house of 
 13.46  representatives ways and means 
 13.47  committees. 
 13.48  For each executive agency with more 
 13.49  than 50 full-time equivalent employees, 
 13.50  the commissioner of employee relations 
 13.51  shall certify the number of full-time 
 13.52  equivalent positions for the last 
 13.53  reporting period in fiscal year 1995, 
 13.54  as reported under Minnesota Statutes, 
 13.55  section 16A.122.  This certification 
 13.56  for each agency shall include the 
 13.57  number of full-time equivalent 
 13.58  employment positions that are not 
 13.59  managers or supervisors, and the number 
 13.60  of full-time equivalent employment 
 13.61  positions that are managers or 
 13.62  supervisors. 
 13.63  At all times, during the biennium 
 13.64  ending June 30, 1997, in each executive 
 13.65  branch agency with more than 50 
 13.66  full-time equivalent employees, the 
 13.67  ratio of full-time equivalent positions 
 14.1   that are not managers or supervisors to 
 14.2   the number of positions that are 
 14.3   managers or supervisors must be at 
 14.4   least as great as the ratio for the 
 14.5   last reporting period in fiscal year 
 14.6   1995, calculated under the preceding 
 14.7   paragraph. 
 14.8   In order to maximize delivery of 
 14.9   services to the public, if layoffs of 
 14.10  state employees as defined in Minnesota 
 14.11  Statutes, chapter 43A, are necessary 
 14.12  during the biennium ending June 30, 
 14.13  1997, each agency with more than 50 
 14.14  full-time equivalent employees must 
 14.15  reduce at least the same percentage of 
 14.16  management and supervisory personnel as 
 14.17  line and support personnel. 
 14.18  Subd. 3.  Employee Insurance
 14.19       1,108,000      1,158,000
 14.20  $104,000 the first year and $104,000 
 14.21  the second year from the general fund 
 14.22  are for the right-to-know contracts 
 14.23  administered through the employee 
 14.24  insurance division. 
 14.25  $1,004,000 the first year and 
 14.26  $1,054,000 the second year from the 
 14.27  general fund are for workers' 
 14.28  compensation reinsurance premiums. 
 14.29  The commissioner of finance shall 
 14.30  transfer in the first year of the 
 14.31  biennium $2,500,000 from the public 
 14.32  employees' insurance program account 
 14.33  within the employee benefits internal 
 14.34  service fund to the general fund. 
 14.35  The amounts required to pay the 
 14.36  premiums to the workers' compensation 
 14.37  reinsurance association under Minnesota 
 14.38  Statutes, section 79.34, are 
 14.39  appropriated annually from the general 
 14.40  fund to the commissioner of employee 
 14.41  relations. 
 14.42  During the biennium ending June 30, 
 14.43  1997, the commissioner shall continue 
 14.44  the health promotion and disease 
 14.45  prevention program for state employees 
 14.46  initiated in fiscal year 1994. 
 14.47  Sec. 16.  REVENUE 
 14.48  Subdivision 1.  Total  
 14.49  Appropriation                         74,954,000     75,375,000
 14.50                Summary by Fund
 14.51  General              72,854,000    73,596,000
 14.52  Environment              92,000        92,000 
 14.53  Highway User          1,682,000     1,687,000 
 14.54  Local Government
 14.55  Trust                   326,000       -0-   
 15.1   $75,000 the first year and $75,000 the 
 15.2   second year must be subtracted from the 
 15.3   total taconite production tax revenues 
 15.4   distributed to local units of 
 15.5   government.  These amounts shall be 
 15.6   credited to the general fund and 
 15.7   appropriated to the department of 
 15.8   revenue for the costs and expenses 
 15.9   incurred by the department in 
 15.10  collecting and distributing taconite 
 15.11  production tax revenues. 
 15.12  During the biennium ending June 30, 
 15.13  1997, the commissioner shall not spend 
 15.14  more money to enforce the unfair 
 15.15  cigarette sales laws than the revenue 
 15.16  derived from fees imposed under the law.
 15.17  Sec. 17.  AMATEUR SPORTS 
 15.18  COMMISSION                             2,101,000      2,104,000
 15.19  (a) $45,000 each year is for the 
 15.20  following purposes: 
 15.21  (1) Target Center programming; and 
 15.22  (2) development of more amateur sports 
 15.23  opportunities for women, girls, 
 15.24  seniors, inner-city youth, and athletes 
 15.25  with special needs. 
 15.26  The amateur sports commission must work 
 15.27  with staff of the city of Minneapolis 
 15.28  and the metropolitan sports facilities 
 15.29  commission to:  research Minnesota's 
 15.30  capabilities to attract local, 
 15.31  national, and international amateur 
 15.32  events; meet with appropriate national 
 15.33  amateur sports governing bodies and 
 15.34  Olympic officials on a regular basis; 
 15.35  and create new grassroots events; all 
 15.36  of which will have a favorable economic 
 15.37  impact on the state. 
 15.38  (b) Of this appropriation: 
 15.39  (1) $1,389,000 each year is for grants 
 15.40  for ice centers, under Minnesota 
 15.41  Statutes, section 240A.09, of up to 
 15.42  $250,000 each; 
 15.43  (2) $200,000 each year is for 
 15.44  renovation grants for existing ice 
 15.45  arenas; and 
 15.46  (3) $11,000 each year is for ice arena 
 15.47  technical assistance. 
 15.48  Sec. 18.  COMMISSIONER OF
 15.49  HUMAN RIGHTS 
 15.50  Subdivision 1.  Total
 15.51  Appropriation                          3,496,000      3,313,000
 15.52  The amounts that may be spent from this 
 15.53  appropriation for each activity are 
 15.54  specified in the following subdivisions.
 15.55  Subd. 2.  Contract Compliance
 15.56         420,000        420,000 
 16.1   Subd. 3.  Complaint Processing
 16.2        2,214,000      2,220,000 
 16.3   Subd. 4.  Management Services 
 16.4   and Administration
 16.5          862,000        673,000 
 16.6   Sec. 19.  MILITARY AFFAIRS  
 16.7   Subdivision 1.  Total 
 16.8   Appropriation                          9,337,000     9,416,000
 16.9   The amounts that may be spent from this 
 16.10  appropriation for each program are 
 16.11  specified in the following subdivisions.
 16.12  Subd. 2.  Maintenance of Training 
 16.13  Facilities 
 16.14       5,431,000      5,497,000
 16.15  The appropriation for planning and 
 16.16  remodeling grants for 12 armories 
 16.17  scheduled to be sold or disposed of 
 16.18  pursuant to Laws 1992, chapter 511, 
 16.19  article 2, section 50, is available 
 16.20  until June 30, 1997. 
 16.21  Any unexpended and unencumbered 
 16.22  appropriation for the biennium ending 
 16.23  June 30, 1995, for the tuition 
 16.24  reimbursement program does not cancel, 
 16.25  but is carried forward and may be used 
 16.26  to pay assessments due to the cities of 
 16.27  New Brighton, Montevideo, Park Rapids, 
 16.28  and Rosemount. 
 16.29  Subd. 3.  General Support
 16.30       1,555,000      1,568,000
 16.31  $75,000 the first year and $75,000 the 
 16.32  second year are for expenses of 
 16.33  military forces ordered to active duty 
 16.34  under Minnesota Statutes, chapter 192.  
 16.35  If the appropriation for either year is 
 16.36  insufficient, the appropriation for the 
 16.37  other year is available for it.  
 16.38  Subd. 4.  Enlistment Incentives
 16.39       2,351,000      2,351,000 
 16.40  Obligations for the reenlistment bonus 
 16.41  program, suspended on December 31, 
 16.42  1991, shall be paid from the amounts 
 16.43  available within the enlistment 
 16.44  incentives program. 
 16.45  If appropriations for either year of 
 16.46  the biennium are insufficient, the 
 16.47  appropriation from the other year is 
 16.48  available.  The appropriations for 
 16.49  enlistment incentives are available 
 16.50  until expended. 
 16.51  Sec. 20.  VETERANS AFFAIRS             3,849,000      3,878,000
 16.52  $230,000 the first year and $230,000 
 17.1   the second year are for grants to 
 17.2   county veterans offices for training of 
 17.3   county veterans service officers. 
 17.4   $1,544,000 the first year and 
 17.5   $1,544,000 the second year are for 
 17.6   emergency financial and medical needs 
 17.7   of veterans.  If the appropriation for 
 17.8   either year is insufficient, the 
 17.9   appropriation for the other year is 
 17.10  available for it.  
 17.11  $250,000 the first year and $250,000 
 17.12  the second year are for a grant to the 
 17.13  Vinland National Center. 
 17.14  With the approval of the commissioner 
 17.15  of finance, the commissioner of 
 17.16  veterans affairs may transfer the 
 17.17  unencumbered balance from the veterans 
 17.18  relief program to other department 
 17.19  programs during the fiscal year.  The 
 17.20  commissioner of veterans affairs shall 
 17.21  provide background information 
 17.22  explaining why the unencumbered balance 
 17.23  exists.  The amounts transferred must 
 17.24  be identified to the chairs of the 
 17.25  senate finance committee division on 
 17.26  state government and the house 
 17.27  governmental operations and gambling 
 17.28  committee division on state government 
 17.29  finance. 
 17.30  $16,200 is to be used to make a 
 17.31  contribution toward the women in 
 17.32  military service memorial at the 
 17.33  entrance to Arlington National Cemetery.
 17.34  $30,000 is to fund a program of the 
 17.35  Minnesota state council of the Vietnam 
 17.36  Veterans of America to assist Vietnam 
 17.37  veterans and Vietnam-era veterans in 
 17.38  the preparation and presentation of 
 17.39  their claims to the United States 
 17.40  government for compensation and other 
 17.41  benefits to which they are entitled as 
 17.42  a result of disabilities incurred in 
 17.43  military service.  This appropriation 
 17.44  may not be used for membership 
 17.45  recruitment.  This appropriation is 
 17.46  available until June 30, 1997. 
 17.47  Sec. 21.  VETERANS OF FOREIGN 
 17.48  WARS                                      31,000         31,000
 17.49  For carrying out the provisions of Laws 
 17.50  1945, chapter 455. 
 17.51  Sec. 22.  MILITARY ORDER OF 
 17.52  THE PURPLE HEART                          10,000         10,000
 17.53  Sec. 23.  DISABLED AMERICAN VETERANS      12,000         12,000
 17.54  For carrying out the provisions of Laws 
 17.55  1941, chapter 425. 
 17.56  Sec. 24.  LAWFUL GAMBLING  
 17.57  CONTROL BOARD                          2,913,000      2,373,000
 17.58  $844,000 the first year and $321,000 
 17.59  the second year are for a systems 
 18.1   project to improve the quality of 
 18.2   service to the lawful gambling industry 
 18.3   and to increase effectiveness in 
 18.4   regulating that industry. 
 18.5   Sec. 25.  RACING COMMISSION              337,000        337,000
 18.6   Sec. 26.  GENERAL CONTINGENT 
 18.7   ACCOUNTS                                 450,000        450,000
 18.8                 Summary by Fund
 18.9   General                 100,000       100,000
 18.10  State Government 
 18.11  Special Revenue         250,000       250,000
 18.12  Workers' Compensation   100,000       100,000
 18.13  The appropriations in this section must 
 18.14  be spent with the approval of the 
 18.15  governor after consultation with the 
 18.16  legislative advisory commission under 
 18.17  Minnesota Statutes, section 3.30. 
 18.18  If an appropriation in this section for 
 18.19  either year is insufficient, the 
 18.20  appropriation for the other year is 
 18.21  available for it. 
 18.22  The special revenue appropriation is 
 18.23  available to be transferred to the 
 18.24  attorney general when the costs to 
 18.25  provide legal services to the health 
 18.26  boards exceed the biennial 
 18.27  appropriation to the attorney general 
 18.28  from the special revenue fund.  The 
 18.29  boards receiving the additional 
 18.30  services shall set their fees to cover 
 18.31  the costs. 
 18.32  Sec. 27.  TORT CLAIMS                    300,000        300,000
 18.33  To be spent by the commissioner of 
 18.34  finance.  
 18.35  If the appropriation for either year is 
 18.36  insufficient, the appropriation for the 
 18.37  other year is available for it.  
 18.38  Sec. 28.  MINNESOTA STATE   
 18.39  RETIREMENT SYSTEM                      2,158,000      2,158,000
 18.40  The amounts estimated to be needed for 
 18.41  each program are as follows: 
 18.42  (a) Legislators 
 18.43       1,993,000      1,993,000
 18.44  Under Minnesota Statutes, sections 
 18.45  3A.03, subdivision 2; 3A.04, 
 18.46  subdivisions 3 and 4; and 3A.11. 
 18.47  (b) Constitutional Officers 
 18.48         165,000        165,000
 18.49  Under Minnesota Statutes, sections 
 18.50  352C.031, subdivision 5; 352C.04, 
 18.51  subdivision 3; and 352C.09, subdivision 
 19.1   2. 
 19.2   If an appropriation in this section for 
 19.3   either year is insufficient, the 
 19.4   appropriation for the other year is 
 19.5   available for it. 
 19.6   Sec. 29.  MINNEAPOLIS EMPLOYEES 
 19.7   RETIREMENT FUND                       11,005,000     11,005,000 
 19.8   $10,455,000 the first year and 
 19.9   $10,455,000 the second year are to the 
 19.10  commissioner of finance for payment to 
 19.11  the Minneapolis employees retirement 
 19.12  fund under Minnesota Statutes, section 
 19.13  422A.101, subdivision 3.  Payment must 
 19.14  be made in four equal installments, 
 19.15  March 15, July 15, September 15, and 
 19.16  November 15, each year.  
 19.17  $550,000 the first year and $550,000 
 19.18  the second year are to the commissioner 
 19.19  of finance for payment to the 
 19.20  Minneapolis employees retirement fund 
 19.21  for the supplemental benefit for 
 19.22  pre-1973 retirees under Minnesota 
 19.23  Statutes, section 356.865. 
 19.24  Sec. 30.  POLICE AND FIRE   
 19.25  AMORTIZATION AID                       6,420,000      6,420,000
 19.26  $5,020,000 the first year and 
 19.27  $5,020,000 the second year are to the 
 19.28  commissioner of revenue for state aid 
 19.29  to amortize the unfunded liability of 
 19.30  local police and salaried firefighters 
 19.31  relief associations, under Minnesota 
 19.32  Statutes, section 423A.02.  
 19.33  $1,000,000 the first year and 
 19.34  $1,000,000 the second year are to the 
 19.35  commissioner of revenue for 
 19.36  supplemental state aid to amortize the 
 19.37  unfunded liability of local police and 
 19.38  salaried firefighters relief 
 19.39  associations under Minnesota Statutes, 
 19.40  section 423A.02, subdivision 1a. 
 19.41  $400,000 each year is to the 
 19.42  commissioner of revenue to pay 
 19.43  reimbursements to relief associations 
 19.44  for firefighter supplemental benefits 
 19.45  paid under Minnesota Statutes, section 
 19.46  424A.10. 
 19.47  Sec. 31.  MINNEAPOLIS TEACHERS
 19.48  RETIREMENT STATE AID                   2,500,000      2,500,000
 19.49  This appropriation is to the 
 19.50  commissioner of finance to make 
 19.51  payments for state matching 
 19.52  amortization aid contributions to the 
 19.53  Minneapolis teachers retirement fund 
 19.54  association under Minnesota Statutes, 
 19.55  section 354A.12. 
 19.56  Sec. 32.  ST. PAUL TEACHERS
 19.57  RETIREMENT STATE AID                     500,000        500,000
 19.58  This appropriation is to the 
 19.59  commissioner of finance to make 
 20.1   payments for state aid contributions to 
 20.2   the St. Paul teachers retirement fund 
 20.3   association under Minnesota Statutes, 
 20.4   section 354A.12. 
 20.5   Sec. 33.  SMALL AGENCY
 20.6   SUPPLEMENT                               180,000        420,000  
 20.7   This appropriation is from the general 
 20.8   fund and is available in either year of 
 20.9   the biennium.  During the biennium the 
 20.10  commissioner shall transfer the 
 20.11  necessary dollars to the small agency 
 20.12  accounts, as determined by the 
 20.13  commissioner of finance, to cover the 
 20.14  costs of the collective bargaining 
 20.15  agreement. 
 20.16  The commissioner shall report to the 
 20.17  chair of the ways and means committee 
 20.18  of the house of representatives and the 
 20.19  chair of the finance committee of the 
 20.20  senate on the transfers made under 
 20.21  these provisions. 
 20.22  Sec. 34.  MINNESOTA CONSERVATION FUND TRANSFER
 20.23  The commissioner of finance shall 
 20.24  transfer in the beginning of the 
 20.25  biennium, $3,000,000 from the Minnesota 
 20.26  conservation fund to the general fund. 
 20.27  Sec. 35.  ATTORNEY GENERAL; MILLE LACS
 20.28  TREATY LITIGATION 
 20.29  $790,000 in fiscal year 1995 is added 
 20.30  to the appropriation in Laws 1993, 
 20.31  chapter 192, section 11, subdivision 3, 
 20.32  for the unanticipated expenses of the 
 20.33  Mille Lacs and Fond du Lac treaty 
 20.34  litigation efforts. 
 20.35  Sec. 36.  MILITARY AFFAIRS; ARMORY
 20.36  ASSESSMENTS                                                    
 20.37  $46,000 in fiscal year 1995 is for 
 20.38  special assessments due to the city of 
 20.39  Roseville for National Guard property 
 20.40  under Minnesota Statutes, section 
 20.41  435.19, subdivision 2. 
 20.42  Sec. 37.  SALARY SUPPLEMENT 
 20.43  This section applies if there is a 
 20.44  forecast unrestricted budgetary general 
 20.45  fund balance for the biennium ending 
 20.46  June 30, 1997, in the department of 
 20.47  finance forecast issued in November 
 20.48  1995.  From such balance, there is 
 20.49  appropriated to the commissioner of 
 20.50  finance an amount sufficient to pay the 
 20.51  costs of salary and benefit-related 
 20.52  base budget growth for employees in all 
 20.53  branches of state government in fiscal 
 20.54  year 1997. 
 20.55     Sec. 38.  [3.225] [PROFESSIONAL AND TECHNICAL SERVICE 
 20.56  CONTRACTS.] 
 20.57     Subdivision 1.  [APPLICATION.] This section applies to a 
 21.1   contract for professional or technical services entered into by 
 21.2   the house of representatives, the senate, the legislative 
 21.3   coordinating commission, or any group under the jurisdiction of 
 21.4   the legislative coordinating commission.  For purposes of this 
 21.5   section, "professional or technical services" contract has the 
 21.6   meaning defined in section 16B.17. 
 21.7      Subd. 2.  [REQUIREMENTS FOR ALL CONTRACTS.] Before entering 
 21.8   into a contract for professional or technical services, the 
 21.9   contracting entity must determine that: 
 21.10     (1) all provisions of section 16B.19, subdivision 2, have 
 21.11  been verified or complied with; 
 21.12     (2) the work to be performed under the contract is 
 21.13  necessary to the entity's achievement of its responsibilities; 
 21.14     (3) the contract will not establish an employment 
 21.15  relationship between the state or the entity and any persons 
 21.16  performing under the contract; 
 21.17     (4) no current legislative employees will engage in the 
 21.18  performance of the contract; 
 21.19     (5) no state agency has previously performed or contracted 
 21.20  for the performance of tasks which would be substantially 
 21.21  duplicated under the proposed contract; 
 21.22     (6) the contracting entity has specified a satisfactory 
 21.23  method of evaluating and using the results of the work to be 
 21.24  performed; and 
 21.25     (7) the combined contract and amendments will not extend 
 21.26  for more than five years. 
 21.27     Subd. 3.  [CONTRACTS OVER $5,000.] Before an entity may 
 21.28  seek to enter into a professional or technical services contract 
 21.29  valued in excess of $5,000, it must determine that: 
 21.30     (1) no legislative employee is able to perform the services 
 21.31  called for by the contract; 
 21.32     (2) reasonable efforts were made to publicize the 
 21.33  availability of the contract to the public; 
 21.34     (3) the entity has received, reviewed, and accepted a 
 21.35  detailed work plan from the contractor for performance under the 
 21.36  contract; and 
 22.1      (4) the entity has developed, and fully intends to 
 22.2   implement, a written plan providing for:  the assignment of 
 22.3   personnel to a monitoring and liaison function; the periodic 
 22.4   review of interim reports or other indications of past 
 22.5   performance; and the ultimate utilization of the final product 
 22.6   of the services. 
 22.7      Subd. 4.  [RENEWALS.] The renewal of a professional or 
 22.8   technical service contract must comply with all requirements, 
 22.9   including notice, applicable to the original contract.  A 
 22.10  renewal contract must be identified as such.  All notices and 
 22.11  reports on a renewal contract must state the date of the 
 22.12  original contract and the amount previously paid under the 
 22.13  contract. 
 22.14     Subd. 5.  [REPORTS.] (a) The house of representatives, the 
 22.15  senate, and the legislative coordinating commission shall submit 
 22.16  to the legislative reference library a monthly listing of all 
 22.17  contracts for professional or technical services executed in the 
 22.18  preceding month.  The report must identify the parties and the 
 22.19  contract amount, duration, and tasks to be performed. 
 22.20     (b) The monthly report must: 
 22.21     (1) be sorted by contracting entity and by contractor; 
 22.22     (2) show the aggregate value of contracts issued by each 
 22.23  agency and issued to each contractor; 
 22.24     (3) distinguish between contracts that are being issued for 
 22.25  the first time and contracts that are being renewed; 
 22.26     (4) state the termination date of each contract; and 
 22.27     (5) categorize contracts according to subject matter, 
 22.28  including topics such as contracts for training, contracts for 
 22.29  research and opinions, and contracts for computer systems. 
 22.30     (c) Within 30 days of final completion of a contract over 
 22.31  $5,000 covered by this subdivision, the chief executive of the 
 22.32  entity entering into the contract must file a one-page 
 22.33  performance report with the legislative reference library.  The 
 22.34  report must: 
 22.35     (1) summarize the purpose of the contract, including why it 
 22.36  was necessary to enter into a contract; 
 23.1      (2) state the amount spent on the contract; and 
 23.2      (3) explain why this amount was a cost-effective way to 
 23.3   enable the entity to provide its services or products better or 
 23.4   more efficiently. 
 23.5      Subd. 6.  [CONTRACT TERMS.] (a) A professional or technical 
 23.6   services contract must by its terms permit the contracting 
 23.7   entity to unilaterally terminate the contract prior to 
 23.8   completion, upon payment of just compensation, if the entity 
 23.9   determines that further performance under the contract would not 
 23.10  serve entity purposes.  If the final product of the contract is 
 23.11  a written report, a copy must be filed with the legislative 
 23.12  reference library. 
 23.13     (b) The terms of a contract must provide that no more than 
 23.14  90 percent of the amount due under the contract may be paid 
 23.15  until the final product has been reviewed by the person entering 
 23.16  into the contract on behalf of the contracting entity, and that 
 23.17  person has certified that the contractor has satisfactorily 
 23.18  fulfilled the terms of the contract. 
 23.19     Sec. 39.  Minnesota Statutes 1994, section 3.855, is 
 23.20  amended by adding a subdivision to read: 
 23.21     Subd. 1a.  [DEFINITIONS.] "Commission" means the 
 23.22  legislative coordinating commission. 
 23.23     Sec. 40.  Minnesota Statutes 1994, section 3.98, is amended 
 23.24  by adding a subdivision to read: 
 23.25     Subd. 2a.  If a fiscal note is prepared on a bill and if an 
 23.26  agency affected by the bill anticipates that it will contract 
 23.27  for professional or technical services as a result of the bill, 
 23.28  the agency preparing the fiscal note must compare the 
 23.29  anticipated cost of the contract with the cost that would be 
 23.30  incurred if the services were to be provided by state employees. 
 23.31     Sec. 41.  Minnesota Statutes 1994, section 3C.02, is 
 23.32  amended by adding a subdivision to read: 
 23.33     Subd. 6.  A contract for professional or technical services 
 23.34  that is valued at more than $50,000 may be made only after the 
 23.35  revisor has consulted with the legislative coordinating 
 23.36  commission.  The contract is subject to its recommendation as 
 24.1   provided by section 3C.10, subdivision 3, for a printing 
 24.2   contract. 
 24.3      Sec. 42.  Minnesota Statutes 1994, section 7.09, 
 24.4   subdivision 1, is amended to read: 
 24.5      Subdivision 1.  [PROCEDURE.] The state treasurer is 
 24.6   authorized to receive and accept, on behalf of the state, any 
 24.7   gift, bequest, devise, or endowment which may be made by any 
 24.8   person, by will, deed, gift, or otherwise, to or for the benefit 
 24.9   of the state, or any of its departments or agencies, or to or in 
 24.10  aid, or for the benefit, support, or maintenance of any 
 24.11  educational, charitable, or other institution maintained in 
 24.12  whole or in part by the state, or for the benefit of students, 
 24.13  employees, or inmates thereof, or for any proper state purpose 
 24.14  or function, and the money, property, or funds constituting such 
 24.15  gift, bequest, devise, or endowment.  No such gift, bequest, 
 24.16  devise, or endowment whose value is equal to or exceeds $10,000 
 24.17  shall be so accepted unless the commissioner of finance and the 
 24.18  state treasurer shall determine that it is for the interest of 
 24.19  the state to accept it, and shall approve of and direct the 
 24.20  acceptance.  If the value is less than $10,000, only the state 
 24.21  treasurer need determine that it is for the interest of the 
 24.22  state to accept it, and approve of and direct the acceptance.  
 24.23  When, in order to effect the purpose for which any gift, 
 24.24  bequest, devise, or endowment has been accepted, it is necessary 
 24.25  to sell property so received, the state treasurer, upon request 
 24.26  of the authority in charge of the agency, department, or 
 24.27  institution concerned, may sell it at a price which shall be 
 24.28  fixed by the state board of investment. 
 24.29     Sec. 43.  Minnesota Statutes 1994, section 8.16, is amended 
 24.30  by adding a subdivision to read: 
 24.31     Subd. 1a.  [SUBPOENAS.] The attorney general may in any 
 24.32  county of the state subpoena and require the production of any 
 24.33  records relating to the location of a debtor or the assets of a 
 24.34  debtor, as that term is defined in section 16D.02, subdivision 
 24.35  4.  Subpoenas may be issued only for records that are relevant 
 24.36  to an investigation related to debt collection. 
 25.1      Sec. 44.  Minnesota Statutes 1994, section 8.31, is amended 
 25.2   by adding a subdivision to read: 
 25.3      Subd. 5.  [ATTORNEY GENERAL TO ASSIST IN DISCOVERY AND 
 25.4   PUNISHMENT OF DISCRIMINATORY PRACTICES AND BIAS OFFENSES.] When 
 25.5   the attorney general has information providing a reasonable 
 25.6   ground to believe that any person is engaged in a pattern or 
 25.7   practice of discrimination in violation of section 363.03, or 
 25.8   that any person has been denied any civil right granted under 
 25.9   section 363.12, subdivision 2, and such denial raises an issue 
 25.10  of general public importance, the attorney general may commence 
 25.11  a civil action on behalf of the person or persons and the state 
 25.12  as provided in section 363.14, subdivision 1, paragraph (a), and 
 25.13  may obtain relief as provided by sections 363.071, subdivision 
 25.14  2, and 363.14, subdivision 3. 
 25.15     When the attorney general has information providing a 
 25.16  reasonable ground to believe that any person has been the victim 
 25.17  of a bias offense as defined in section 611A.78, and such denial 
 25.18  raises an issue of general public importance, the attorney 
 25.19  general may obtain relief as provided by section 611A.78, 
 25.20  subdivision 2. 
 25.21     For purposes of this subdivision, the term "person" has the 
 25.22  meaning specified in section 363.01, subdivision 28. 
 25.23     Sec. 45.  Minnesota Statutes 1994, section 15.061, is 
 25.24  amended to read: 
 25.25     15.061 [CONSULTANT, PROFESSIONAL AND OR TECHNICAL 
 25.26  SERVICES.] 
 25.27     Pursuant to the provisions of In accordance with section 
 25.28  16B.17, the head of a state department or agency may, with the 
 25.29  approval of the commissioner of administration, contract 
 25.30  for consultant services and professional and or technical 
 25.31  services in connection with the operation of the department or 
 25.32  agency.  A contract negotiated under this section shall is not 
 25.33  be subject to the competitive bidding requirements of chapter 16 
 25.34  16B. 
 25.35     Sec. 46.  Minnesota Statutes 1994, section 15.415, is 
 25.36  amended to read: 
 26.1      15.415 [CORRECTIONS IN TRANSACTIONS, WAIVER.] 
 26.2      In any instance where a correction concerning any state 
 26.3   department or agency transaction involves an amount less than 
 26.4   the administrative cost of making the correction, the correction 
 26.5   shall be waived unless it is possible at a relatively nominal 
 26.6   expense to include the correction in a later transaction.  If 
 26.7   the amount of any correction is less than $2 $5 it shall be 
 26.8   prima facie evidence that the cost of the correction would 
 26.9   exceed the amount involved.  
 26.10     Sec. 47.  Minnesota Statutes 1994, section 15.50, 
 26.11  subdivision 2, is amended to read: 
 26.12     Subd. 2.  [CAPITOL AREA PLAN.] (a) The board shall prepare, 
 26.13  prescribe, and from time to time, after a public hearing, amend 
 26.14  a comprehensive use plan for the capitol area, called the area 
 26.15  in this subdivision, which consists of that portion of the city 
 26.16  of Saint Paul comprehended within the following boundaries:  
 26.17  Beginning at the point of intersection of the center line of the 
 26.18  Arch-Pennsylvania freeway and the center line of Marion Street, 
 26.19  thence southerly along the center line of Marion Street extended 
 26.20  to a point 50 feet south of the south line of Concordia Avenue, 
 26.21  thence southeasterly along a line extending 50 feet from the 
 26.22  south line of Concordia Avenue to a point 125 feet from the west 
 26.23  line of John Ireland Boulevard, thence southwesterly along a 
 26.24  line extending 125 feet from the west line of John Ireland 
 26.25  Boulevard to the south line of Dayton Avenue, thence 
 26.26  northeasterly from the south line of Dayton Avenue to the west 
 26.27  line of John Ireland Boulevard, thence northeasterly to the 
 26.28  center line of the intersection of Old Kellogg Boulevard and 
 26.29  Summit Avenue, thence northeasterly along the center line of 
 26.30  Summit Avenue to the center line of the new West Kellogg 
 26.31  Boulevard, thence southerly along the east line of the new West 
 26.32  Kellogg Boulevard, to the center line of West Seventh Street, 
 26.33  thence northeasterly along the center line of West Seventh 
 26.34  Street to the center line of the Fifth Street ramp, thence 
 26.35  northwesterly along the center line of the Fifth Street ramp to 
 26.36  the east line of the right-of-way of Interstate Highway 35-E, 
 27.1   thence northeasterly along the east line of the right-of-way of 
 27.2   Interstate Highway 35-E to the south line of the right-of-way of 
 27.3   Interstate Highway 94, thence easterly along the south line of 
 27.4   the right-of-way of Interstate Highway 94 to the west line of 
 27.5   St. Peter Street, thence southerly to the south line of Eleventh 
 27.6   Exchange Street, thence easterly along the south line 
 27.7   of Eleventh Exchange Street to the west line of Cedar Street, 
 27.8   thence southeasterly northerly along the west line of Cedar 
 27.9   Street to the center line of Tenth Street, thence northeasterly 
 27.10  along the center line of Tenth Street to the center line of 
 27.11  Minnesota Street, thence northwesterly along the center line of 
 27.12  Minnesota Street to the center line of Eleventh Street, thence 
 27.13  northeasterly along the center line of Eleventh Street to the 
 27.14  center line of Jackson Street, thence northwesterly along the 
 27.15  center line of Jackson Street to the center line of the 
 27.16  Arch-Pennsylvania freeway extended, thence westerly along the 
 27.17  center line of the Arch-Pennsylvania freeway extended and Marion 
 27.18  Street to the point of origin.  If construction of the labor 
 27.19  interpretive center does not commence prior to December 31, 1998 
 27.20  2000, at the site recommended by the board, the boundaries of 
 27.21  the capitol area revert to their configuration as of 1992.  
 27.22     Under the comprehensive plan, or a portion of it, the board 
 27.23  may regulate, by means of zoning rules adopted under the 
 27.24  administrative procedure act, the kind, character, height, and 
 27.25  location, of buildings and other structures constructed or used, 
 27.26  the size of yards and open spaces, the percentage of lots that 
 27.27  may be occupied, and the uses of land, buildings and other 
 27.28  structures, within the area.  To protect and enhance the 
 27.29  dignity, beauty, and architectural integrity of the capitol 
 27.30  area, the board is further empowered to include in its zoning 
 27.31  rules design review procedures and standards with respect to any 
 27.32  proposed construction activities in the capitol area 
 27.33  significantly affecting the dignity, beauty, and architectural 
 27.34  integrity of the area.  No person may undertake these 
 27.35  construction activities as defined in the board's rules in the 
 27.36  capitol area without first submitting construction plans to the 
 28.1   board, obtaining a zoning permit from the board, and receiving a 
 28.2   written certification from the board specifying that the person 
 28.3   has complied with all design review procedures and standards.  
 28.4   Violation of the zoning rules is a misdemeanor.  The board may, 
 28.5   at its option, proceed to abate any violation by injunction.  
 28.6   The board and the city of Saint Paul shall cooperate in assuring 
 28.7   that the area adjacent to the capitol area is developed in a 
 28.8   manner that is in keeping with the purpose of the board and the 
 28.9   provisions of the comprehensive plan.  
 28.10     (b) The commissioner of administration shall act as a 
 28.11  consultant to the board with regard to the physical structural 
 28.12  needs of the state.  The commissioner shall make studies and 
 28.13  report the results to the board when it requests reports for its 
 28.14  planning purpose.  
 28.15     (c) No public building, street, parking lot, or monument, 
 28.16  or other construction may be built or altered on any public 
 28.17  lands within the area unless the plans for the project conform 
 28.18  to the comprehensive use plan as specified in paragraph (d) and 
 28.19  to the requirement for competitive plans as specified in 
 28.20  paragraph (e).  No alteration substantially changing the 
 28.21  external appearance of any existing public building approved in 
 28.22  the comprehensive plan or the exterior or interior design of any 
 28.23  proposed new public building the plans for which were secured by 
 28.24  competition under paragraph (e) may be made without the prior 
 28.25  consent of the board.  The commissioner of administration shall 
 28.26  consult with the board regarding internal changes having the 
 28.27  effect of substantially altering the architecture of the 
 28.28  interior of any proposed building.  
 28.29     (d) The comprehensive plan must show the existing land uses 
 28.30  and recommend future uses including:  areas for public taking 
 28.31  and use; zoning for private land and criteria for development of 
 28.32  public land, including building areas, open spaces, monuments, 
 28.33  and other memorials; vehicular and pedestrian circulation; 
 28.34  utilities systems; vehicular storage; elements of landscape 
 28.35  architecture.  No substantial alteration or improvement may be 
 28.36  made to public lands or buildings in the area without the 
 29.1   written approval of the board.  
 29.2      (e) The board shall secure by competitions plans for any 
 29.3   new public building.  Plans for any comprehensive plan, 
 29.4   landscaping scheme, street plan, or property acquisition that 
 29.5   may be proposed, or for any proposed alteration of any existing 
 29.6   public building, landscaping scheme or street plan may be 
 29.7   secured by a similar competition.  A competition must be 
 29.8   conducted under rules prescribed by the board and may be of any 
 29.9   type which meets the competition standards of the American 
 29.10  Institute of Architects.  Designs selected become the property 
 29.11  of the state of Minnesota, and the board may award one or more 
 29.12  premiums in each competition and may pay the costs and fees that 
 29.13  may be required for its conduct.  At the option of the board, 
 29.14  plans for projects estimated to cost less than $1,000,000 may be 
 29.15  approved without competition provided the plans have been 
 29.16  considered by the advisory committee described in paragraph 
 29.17  (h).  Plans for projects estimated to cost less than $400,000 
 29.18  and for construction of streets need not be considered by the 
 29.19  advisory committee if in conformity with the comprehensive plan. 
 29.20     (f) Notwithstanding paragraph (e), an architectural 
 29.21  competition is not required for the design of any light rail 
 29.22  transit station and alignment within the capitol area.  The 
 29.23  board and its advisory committee shall select a preliminary 
 29.24  design for any transit station in the capitol area.  Each stage 
 29.25  of any station's design through working drawings must be 
 29.26  reviewed by the board's advisory committee and approved by the 
 29.27  board to ensure that the station's design is compatible with the 
 29.28  comprehensive plan for the capitol area and the board's design 
 29.29  criteria.  The guideway and track design of any light rail 
 29.30  transit alignment within the capitol area must also be reviewed 
 29.31  by the board's advisory committee and approved by the board. 
 29.32     (g) Of the amount available for the light rail transit 
 29.33  design, adequate funds must be available to the board for design 
 29.34  framework studies and review of preliminary plans for light rail 
 29.35  transit alignment and stations in the capitol area. 
 29.36     (h) The board may not adopt any plan under paragraph (e) 
 30.1   unless it first receives the comments and criticism of an 
 30.2   advisory committee of three persons, each of whom is either an 
 30.3   architect or a planner, who have been selected and appointed as 
 30.4   follows:  one by the board of the arts, one by the board, and 
 30.5   one by the Minnesota Society of the American Institute of 
 30.6   Architects.  Members of the committee may not be contestants 
 30.7   under paragraph (e).  The comments and criticism must be a 
 30.8   matter of public information.  The committee shall advise the 
 30.9   board on all architectural and planning matters.  For that 
 30.10  purpose, the committee must be kept currently informed 
 30.11  concerning, and have access to, all data, including all plans, 
 30.12  studies, reports and proposals, relating to the area as the data 
 30.13  are developed or in the process of preparation, whether by the 
 30.14  commissioner of administration, the commissioner of trade and 
 30.15  economic development, the metropolitan council, the city of 
 30.16  Saint Paul, or by any architect, planner, agency or 
 30.17  organization, public or private, retained by the board or not 
 30.18  retained and engaged in any work or planning relating to the 
 30.19  area, and a copy of any data prepared by any public employee or 
 30.20  agency must be filed with the board promptly upon completion.  
 30.21     The board may employ stenographic or technical help that 
 30.22  may be reasonable to assist the committee to perform its duties. 
 30.23     When so directed by the board, the committee may serve as, 
 30.24  and any member or members of the committee may serve on, the 
 30.25  jury or as professional advisor for any architectural 
 30.26  competition, and the board shall select the architectural 
 30.27  advisor and jurors for any competition with the advice of the 
 30.28  committee.  
 30.29     The city of Saint Paul shall advise the board.  
 30.30     (i) The comprehensive plan for the area must be developed 
 30.31  and maintained in close cooperation with the commissioner of 
 30.32  trade and economic development, the planning department and the 
 30.33  council for the city of Saint Paul, and the board of the arts, 
 30.34  and no plan or amendment of a plan may be effective without 90 
 30.35  days' notice to the planning department of the city of Saint 
 30.36  Paul and the board of the arts and without a public hearing with 
 31.1   opportunity for public testimony.  
 31.2      (j) The board and the commissioner of administration, 
 31.3   jointly, shall prepare, prescribe, and from time to time revise 
 31.4   standards and policies governing the repair, alteration, 
 31.5   furnishing, appearance, and cleanliness of the public and 
 31.6   ceremonial areas of the state capitol building.  The board shall 
 31.7   consult with and receive advice from the director of the 
 31.8   Minnesota state historical society regarding the historic 
 31.9   fidelity of plans for the capitol building.  The standards and 
 31.10  policies developed under this paragraph are binding upon the 
 31.11  commissioner of administration.  The provisions of sections 
 31.12  14.02, 14.04 to 14.36, 14.38, and 14.44 to 14.45 do not apply to 
 31.13  this paragraph.  
 31.14     (k) The board in consultation with the commissioner of 
 31.15  administration shall prepare and submit to the legislature and 
 31.16  the governor no later than October 1 of each even-numbered year 
 31.17  a report on the status of implementation of the comprehensive 
 31.18  plan together with a program for capital improvements and site 
 31.19  development, and the commissioner of administration shall 
 31.20  provide the necessary cost estimates for the program.  The board 
 31.21  shall report any changes to the comprehensive plan adopted by 
 31.22  the board to the committee on governmental operations and 
 31.23  gambling of the house of representatives and the committee on 
 31.24  governmental operations and reform of the senate and upon 
 31.25  request shall provide testimony concerning the changes.  The 
 31.26  board shall also provide testimony to the legislature on 
 31.27  proposals for memorials in the capitol area as to their 
 31.28  compatibility with the standards, policies, and objectives of 
 31.29  the comprehensive plan. 
 31.30     (l) The state shall, by the attorney general upon the 
 31.31  recommendation of the board and within appropriations available 
 31.32  for that purpose, acquire by gift, purchase, or eminent domain 
 31.33  proceedings any real property situated in the area described in 
 31.34  this section, and it may also acquire an interest less than a 
 31.35  fee simple interest in the property, if it finds that the 
 31.36  property is needed for future expansion or beautification of the 
 32.1   area.  
 32.2      (m) The board is the successor of the state veterans 
 32.3   service building commission, and as such may adopt rules and may 
 32.4   reenact the rules adopted by its predecessor under Laws 1945, 
 32.5   chapter 315, and amendments to it.  
 32.6      (n) The board shall meet at the call of the chair and at 
 32.7   such other times as it may prescribe.  
 32.8      (o) The commissioner of administration shall assign 
 32.9   quarters in the state veterans service building to (1) the 
 32.10  department of veterans affairs, of which a part that the 
 32.11  commissioner of administration and commissioner of veterans 
 32.12  affairs may mutually determine must be on the first floor above 
 32.13  the ground, and (2) the American Legion, Veterans of Foreign 
 32.14  Wars, Disabled American Veterans, Military Order of the Purple 
 32.15  Heart, United Spanish War Veterans, and Veterans of World War I, 
 32.16  and their auxiliaries, incorporated, or when incorporated, under 
 32.17  the laws of the state, and (3) as space becomes available, to 
 32.18  other state departments and agencies as the commissioner may 
 32.19  deem desirable. 
 32.20     Sec. 48.  Minnesota Statutes 1994, section 15.91, 
 32.21  subdivision 2, is amended to read: 
 32.22     Subd. 2.  [PERFORMANCE REPORTS.] (a) Each agency shall 
 32.23  develop a performance report for the major programs that it 
 32.24  provides or administers.  The report shall include each of the 
 32.25  following items or an explanation of why an item does not apply 
 32.26  to the agency or its individual programs: 
 32.27     (1) a statement of the mission, goals, and objectives of 
 32.28  the agency including those set forth in statute; 
 32.29     (2) measures of the output and outcome of the program; 
 32.30     (3) identification of priority and other populations served 
 32.31  by the programs under current law and how those populations are 
 32.32  expected to change within the period of the report; 
 32.33     (4) plans for how outcome information can be used as an 
 32.34  incentive for improving state programs and program outcomes; 
 32.35     (5) requests for statutory flexibility needed to reach 
 32.36  outcome goals; 
 33.1      (6) proposals and cost estimates for collecting new outcome 
 33.2   information; and 
 33.3      (7) other information that may be required to explain the 
 33.4   past and projected performance of state programs. 
 33.5      The objectives required under clause (1):  (i) must be 
 33.6   simple declarative statements of intent; (ii) should carry 
 33.7   benchmarks for accomplishment; and (iii) should be specific 
 33.8   enough so citizens can measure progress year to year. 
 33.9      (b) Each agency shall issue a first annual report by 
 33.10  September 1, 1994, and annual updated reports no later than 
 33.11  September 1 October 30 of each year beginning in 1995.  A report 
 33.12  must cover a period of four years previous and two years in the 
 33.13  future from the date that it is required to be issued, including 
 33.14  previous forecasts versus actual measures. 
 33.15     (c) Each agency shall send a copy of each report issued to 
 33.16  the governor, the speaker of the house of representatives, the 
 33.17  president of the senate, the legislative commission on planning 
 33.18  and fiscal policy, the legislative auditor, the commissioner of 
 33.19  finance, and two copies to the legislative reference library. 
 33.20     (d) The legislative auditor shall review the drafts and 
 33.21  give comments to agencies and the legislature before September 
 33.22  1, 1994, and shall review and give comments on annual reports on 
 33.23  a rotating biennial schedule. 
 33.24     (e) State agency reports shall be compiled as required in 
 33.25  this paragraph.  The commissioner of finance, in consultation 
 33.26  with the commissioner of administration, the legislative 
 33.27  commission on planning and fiscal policy, and the finance 
 33.28  committees and divisions of the house of representatives and 
 33.29  senate, shall: 
 33.30     (1) develop forms and instructions by March 15 each year 
 33.31  and coordinate training for the use of the agencies in the 
 33.32  preparation of their reports; 
 33.33     (2) work with individual agencies to determine acceptable 
 33.34  measures of staff workload, unit costs, output, and outcome for 
 33.35  use in reports; and 
 33.36     (3) request any needed additional information concerning 
 34.1   any agency report submitted. 
 34.2      Each agency shall include citizens, agency clients, 
 34.3   consumer and advocacy groups, worker participation committees, 
 34.4   managers, elected officials, and contractors in its planning. 
 34.5      Sec. 49.  [16A.101] [CONSULTANT CONTRACTS.] 
 34.6      The budget documents must report expenditures for 
 34.7   consultant and professional and technical service contracts, as 
 34.8   defined in section 16B.17, as a separate category.  No other 
 34.9   expenditures may be included in this category. 
 34.10     Sec. 50.  Minnesota Statutes 1994, section 16A.11, is 
 34.11  amended by adding a subdivision to read: 
 34.12     Subd. 3b.  [CONTRACTS.] The detailed budget estimate must 
 34.13  also include the following information on professional or 
 34.14  technical services contracts: 
 34.15     (1) the number and amount of contracts over $25,000 for 
 34.16  each agency for the past biennium; 
 34.17     (2) the anticipated number and amount of contracts over 
 34.18  $25,000 for each agency for the upcoming biennium; and 
 34.19     (3) the total value of all contracts from the previous 
 34.20  biennium, and the anticipated total value of all contracts for 
 34.21  the upcoming biennium. 
 34.22     Sec. 51.  Minnesota Statutes 1994, section 16A.127, 
 34.23  subdivision 8, is amended to read: 
 34.24     Subd. 8.  [EXEMPTIONS.] (a) No statewide or agency indirect 
 34.25  cost liability shall be accrued to any program, appropriation, 
 34.26  or account that is specifically exempted from the liability in 
 34.27  federal or state law, or if the commissioner determines the 
 34.28  funds to be held in trust, or to be a pass-through, workshop, or 
 34.29  seminar account.  Accounts receiving proceeds from bond issues, 
 34.30  and those accounts whose funds are determined by the 
 34.31  commissioner to originate from the general fund, accounts are 
 34.32  also exempt from this section. 
 34.33     (b) Except for the costs of the legislative auditor to 
 34.34  conduct financial audits of federal funds, this section does not 
 34.35  apply to the community college board, state university board, or 
 34.36  the state board of technical colleges.  Receipts attributable to 
 35.1   financial audits conducted by the legislative auditor of federal 
 35.2   funds administered by these post-secondary education boards 
 35.3   shall be deposited in the general fund. 
 35.4      Sec. 52.  Minnesota Statutes 1994, section 16A.129, 
 35.5   subdivision 3, is amended to read: 
 35.6      Subd. 3.  [CASH ADVANCES.] When the operations of any 
 35.7   nongeneral fund account would be impeded by projected cash 
 35.8   deficiencies resulting from delays in the receipt of grants, 
 35.9   dedicated income, or other similar receivables, and when the 
 35.10  deficiencies would be corrected within the budget period 
 35.11  involved, the commissioner of finance may transfer use general 
 35.12  fund cash reserves into the accounts as necessary to meet cash 
 35.13  demands.  If funds are transferred from the general fund to meet 
 35.14  cash flow needs, the cash flow transfers must be returned to the 
 35.15  general fund as soon as sufficient cash balances are available 
 35.16  in the account to which the transfer was made.  Any interest 
 35.17  earned on general fund cash flow transfers accrues to the 
 35.18  general fund and not to the accounts or funds to which the 
 35.19  transfer was made. 
 35.20     Sec. 53.  Minnesota Statutes 1994, section 16A.28, 
 35.21  subdivision 5, is amended to read: 
 35.22     Subd. 5.  [PERMANENT IMPROVEMENTS.] An appropriation for 
 35.23  permanent improvements, including the acquisition of real 
 35.24  property does not lapse until the purposes of the appropriation 
 35.25  are determined by the commissioner, after consultation with the 
 35.26  affected agencies, to be accomplished or abandoned.  This 
 35.27  subdivision also applies to any part of an appropriation for a 
 35.28  fiscal year that has been requisitioned to acquire real property 
 35.29  or construct permanent improvements.  
 35.30     Sec. 54.  Minnesota Statutes 1994, section 16A.28, 
 35.31  subdivision 6, is amended to read: 
 35.32     Subd. 6.  [CANCELED SEPTEMBER 1 OCTOBER 15.] On September 1 
 35.33  October 15 all allotments and encumbrances for the last fiscal 
 35.34  year shall be canceled unless an agency head certifies to the 
 35.35  commissioner that there is an encumbrance for services rendered 
 35.36  or goods ordered in the last fiscal year, or certifies that 
 36.1   funding will be carried forward under subdivision 1.  The 
 36.2   commissioner may:  reinstate the part of the cancellation needed 
 36.3   to meet the certified encumbrance or charge the certified 
 36.4   encumbrance against the current year's appropriation. 
 36.5      Sec. 55.  Minnesota Statutes 1994, section 16A.40, is 
 36.6   amended to read: 
 36.7      16A.40 [WARRANTS.] 
 36.8      Money must not be paid out of the state treasury except 
 36.9   upon the warrant of the commissioner or an electronic fund 
 36.10  transfer approved by the commissioner.  Warrants must be drawn 
 36.11  on printed blanks that are in numerical order.  The commissioner 
 36.12  shall enter, in numerical order in a warrant register, the 
 36.13  number, amount, date, and payee for every warrant issued. 
 36.14     Sec. 56.  Minnesota Statutes 1994, section 16A.57, is 
 36.15  amended to read: 
 36.16     16A.57 [APPROPRIATION, ALLOTMENT, AND WARRANT NEEDED.] 
 36.17     Unless otherwise expressly provided by law, state money may 
 36.18  not be spent or applied without an appropriation, an allotment, 
 36.19  and issuance of a warrant or electronic fund transfer. 
 36.20     Sec. 57.  Minnesota Statutes 1994, section 16B.06, is 
 36.21  amended by adding a subdivision to read: 
 36.22     Subd. 7.  [COMPLIANCE.] The commissioner must develop 
 36.23  procedures to audit agency personnel to whom the commissioner 
 36.24  has delegated contracting authority, in order to assure 
 36.25  compliance with laws and guidelines governing issuance of 
 36.26  contracts, including laws and guidelines governing conflicts of 
 36.27  interest. 
 36.28     Sec. 58.  [16B.167] [EMPLOYEE SKILLS INVENTORY.] 
 36.29     (a) The commissioners of employee relations and 
 36.30  administration shall develop a list of skills that state 
 36.31  agencies commonly seek from professional or technical service 
 36.32  contracts, in consultation with exclusive representatives of 
 36.33  state employees. 
 36.34     (b) Before an agency may seek approval of a professional or 
 36.35  technical services contract valued in excess of $5,000, it must 
 36.36  certify to the commissioner that it has publicized the contract 
 37.1   by posting notice at appropriate worksites within agencies and 
 37.2   has made reasonable efforts to determine that no state employee, 
 37.3   including an employee outside the contracting agency, is able to 
 37.4   perform the services called for by the contract. 
 37.5      Sec. 59.  Minnesota Statutes 1994, section 16B.17, is 
 37.6   amended to read: 
 37.7      16B.17 [CONSULTANTS AND PROFESSIONAL OR TECHNICAL 
 37.8   SERVICES.] 
 37.9      Subdivision 1.  [TERMS.] For the purposes of this section, 
 37.10  the following terms have the meanings given them: 
 37.11     (a) [CONSULTANT SERVICES.] "Consultant professional or 
 37.12  technical services" means services which that are intellectual 
 37.13  in character; which that do not involve the provision of 
 37.14  supplies or materials; which that include consultation analysis, 
 37.15  evaluation, prediction, planning, or recommendation; and which 
 37.16  that result in the production of a report or the completion of a 
 37.17  task.  
 37.18     (b) [PROFESSIONAL AND TECHNICAL SERVICES.] "Professional 
 37.19  and technical services" means services which are predominantly 
 37.20  intellectual in character; which do not involve the provision of 
 37.21  supplies or materials; and in which the final result is the 
 37.22  completion of a task rather than analysis, evaluation, 
 37.23  prediction, planning, or recommendation.  
 37.24     Subd. 2.  [PROCEDURE FOR CONSULTANT AND PROFESSIONAL AND OR 
 37.25  TECHNICAL SERVICES CONTRACTS.] Before approving a proposed state 
 37.26  contract for consultant services or professional and or 
 37.27  technical services, the commissioner must determine, at least, 
 37.28  that:  
 37.29     (1) all provisions of section 16B.19 and subdivision 3 of 
 37.30  this section have been verified or complied with; 
 37.31     (2) the work to be performed under the contract is 
 37.32  necessary to the agency's achievement of its statutory 
 37.33  responsibilities, and there is statutory authority to enter into 
 37.34  the contract; 
 37.35     (3) the contract will not establish an employment 
 37.36  relationship between the state or the agency and any persons 
 38.1   performing under the contract; 
 38.2      (4) no current state employees will engage in the 
 38.3   performance of the contract; 
 38.4      (5) no state agency has previously performed or contracted 
 38.5   for the performance of tasks which would be substantially 
 38.6   duplicated under the proposed contract; and 
 38.7      (6) the contracting agency has specified a satisfactory 
 38.8   method of evaluating and using the results of the work to be 
 38.9   performed; and 
 38.10     (7) the combined contract and amendments will not extend 
 38.11  for more than five years.  
 38.12     Subd. 3.  [DUTIES OF CONTRACTING AGENCY.] Before an agency 
 38.13  may seek approval of a consultant or professional and or 
 38.14  technical services contract valued in excess of $5,000, it must 
 38.15  certify to the commissioner that:  
 38.16     (1) no current state employee is able to perform the 
 38.17  services called for by the contract; 
 38.18     (2) the normal competitive bidding mechanisms will not 
 38.19  provide for adequate performance of the services; 
 38.20     (3) the services are not available as a product of a prior 
 38.21  consultant or professional and technical services contract, and 
 38.22  the contractor has certified that the product of the services 
 38.23  will be original in character; 
 38.24     (4) reasonable efforts were made to publicize the 
 38.25  availability of the contract to the public; 
 38.26     (5) the agency has received, reviewed, and accepted a 
 38.27  detailed work plan from the contractor for performance under the 
 38.28  contract; and 
 38.29     (6) the agency has developed, and fully intends to 
 38.30  implement, a written plan providing for the assignment of 
 38.31  specific agency personnel to a monitoring and liaison function;, 
 38.32  the periodic review of interim reports or other indications of 
 38.33  past performance, and the ultimate utilization of the final 
 38.34  product of the services; and 
 38.35     (7) the agency will not allow the contractor to begin work 
 38.36  before funds are fully encumbered. 
 39.1      The agency certification must provide detail on how the 
 39.2   agency complied with this subdivision.  In particular, the 
 39.3   agency must describe how it complied with clauses (1) and (4) 
 39.4   and section 16B.167, paragraph (b), and what steps it has taken 
 39.5   to verify the competence of the proposed contractor. 
 39.6      Subd. 3a.  [RENEWALS.] The renewal of a professional or 
 39.7   technical contract must comply with all requirements, including 
 39.8   notice, applicable to the original contract.  A renewal contract 
 39.9   must be identified as such.  All notices and reports on a 
 39.10  renewal contract must state the date of the original contract 
 39.11  and the amount paid previously under the contract.  
 39.12     Subd. 4.  [REPORTS.] (a) The commissioner shall submit to 
 39.13  the governor, the chairs of the house ways and means and senate 
 39.14  finance committees, and the legislature legislative reference 
 39.15  library a monthly listing of all contracts for consultant 
 39.16  services and for professional and or technical services executed 
 39.17  or disapproved in the preceding month.  The report must identify 
 39.18  the parties and the contract amount, duration, and tasks to be 
 39.19  performed.  The commissioner shall also issue quarterly reports 
 39.20  summarizing the contract review activities of the department 
 39.21  during the preceding quarter. 
 39.22     (b) The monthly and quarterly reports must: 
 39.23     (1) be sorted by agency and by contractor; 
 39.24     (2) show the aggregate value of contracts issued by each 
 39.25  agency and issued to each contractor; 
 39.26     (3) distinguish between contracts that are being issued for 
 39.27  the first time and contracts that are being renewed; 
 39.28     (4) state the termination date of each contract; and 
 39.29     (5) categorize contracts according to subject matter, 
 39.30  including topics such as contracts for training, contracts for 
 39.31  research and opinions, and contracts for computer systems. 
 39.32     (c) Within 30 days of final completion of a contract over 
 39.33  $5,000 covered by this subdivision, the chief executive of the 
 39.34  agency entering into the contract must submit a one-page report 
 39.35  to the commissioner who must submit a copy to the legislative 
 39.36  reference library.  The report must: 
 40.1      (1) summarize the purpose of the contract, including why it 
 40.2   was necessary to enter into a contract; 
 40.3      (2) state the amount spent on the contract; and 
 40.4      (3) explain why this amount was a cost-effective way to 
 40.5   enable the agency to provide its services or products better or 
 40.6   more efficiently.  
 40.7      Subd. 5.  [CONTRACT TERMS.] (a) A consultant or technical 
 40.8   and professional or technical services contract must by its 
 40.9   terms permit the agency to unilaterally terminate the contract 
 40.10  prior to completion, upon payment of just compensation, if the 
 40.11  agency determines that further performance under the contract 
 40.12  would not serve agency purposes.  If the final product of the 
 40.13  contract is to be a written report, no more than three copies of 
 40.14  the report, one in camera ready form, shall be submitted to the 
 40.15  agency.  One of the copies a copy must be filed with the 
 40.16  legislative reference library.  
 40.17     (b) The terms of a contract must provide that no more than 
 40.18  90 percent of the amount due under the contract may be paid 
 40.19  until the final product has been reviewed by the chief executive 
 40.20  of the agency entering into the contract, and the chief 
 40.21  executive has certified that the contractor has satisfactorily 
 40.22  fulfilled the terms of the contract. 
 40.23     Subd. 6.  [EXCLUSIONS.] This section and section 16B.167 do 
 40.24  not apply: 
 40.25     (1) to Minnesota state college or university contracts to 
 40.26  provide instructional services to public or private 
 40.27  organizations, agencies, businesses, or industries; 
 40.28     (2) to contracts with individuals or organizations for 
 40.29  administration of employee pension plans authorized under 
 40.30  chapter 354B or 354C; or 
 40.31     (3) to instructional services provided to Minnesota state 
 40.32  colleges or universities by organizations or individuals 
 40.33  provided the contracts are consistent with terms of applicable 
 40.34  labor agreements. 
 40.35     Sec. 60.  [16B.175] [PROFESSIONAL OR TECHNICAL SERVICE 
 40.36  CONTRACT CONFLICT OF INTEREST GUIDELINES.] 
 41.1      Subdivision 1.  [DEVELOPMENT; APPLICABILITY.] The 
 41.2   commissioner of administration must develop guidelines designed 
 41.3   to prevent conflicts of interest for agency employees involved 
 41.4   in professional or technical service contracts.  The guidelines 
 41.5   must apply to agency employees who are directly or indirectly 
 41.6   involved in:  developing requests for proposals; evaluating 
 41.7   proposals; drafting and entering into professional or technical 
 41.8   service contracts; evaluating performance under these contracts; 
 41.9   and authorizing payments under the contract. 
 41.10     Subd. 2.  [CONTENT.] (a) The guidelines must attempt to 
 41.11  assure that an employee involved in contracting: 
 41.12     (1) does not have any financial interest in and does not 
 41.13  personally benefit from the contract; 
 41.14     (2) does not accept from a contractor or bidder any 
 41.15  promise, obligation, contract for future reward, or gift; and 
 41.16     (3) does not appear to have a conflict of interest because 
 41.17  of a family or close personal relationship to a contractor or 
 41.18  bidder, or because of a past employment or business relationship 
 41.19  with a contractor or bidder. 
 41.20     (b) The guidelines must contain a process for making 
 41.21  employees aware of guidelines and laws relating to conflict of 
 41.22  interest, and for training employees on how to avoid and deal 
 41.23  with potential conflicts. 
 41.24     (c) The guidelines must contain a process under which an 
 41.25  employee who has a conflict or a potential conflict may disclose 
 41.26  the matter, and a process under which work on the contract may 
 41.27  be assigned to another employee if possible. 
 41.28     Sec. 61.  Minnesota Statutes 1994, section 16B.19, 
 41.29  subdivision 2, is amended to read: 
 41.30     Subd. 2.  [CONSULTANT, PROFESSIONAL AND OR TECHNICAL 
 41.31  PROCUREMENTS.] Every state agency shall for each fiscal year 
 41.32  designate for awarding to small businesses at least 25 percent 
 41.33  of the value of anticipated procurements of that agency for 
 41.34  consultant services or professional and or technical services.  
 41.35  The set-aside under this subdivision is in addition to that 
 41.36  provided by subdivision 1, but shall must otherwise comply with 
 42.1   section 16B.17. 
 42.2      Sec. 62.  Minnesota Statutes 1994, section 16B.19, 
 42.3   subdivision 10, is amended to read: 
 42.4      Subd. 10.  [APPLICABILITY.] This section does not apply to 
 42.5   construction contracts or contracts for consultant, 
 42.6   professional, or technical services under section 16B.17 that 
 42.7   are financed in whole or in part with federal funds and that are 
 42.8   subject to federal disadvantaged business enterprise regulations.
 42.9      Sec. 63.  Minnesota Statutes 1994, section 16B.42, 
 42.10  subdivision 3, is amended to read: 
 42.11     Subd. 3.  [OTHER DUTIES.] The intergovernmental 
 42.12  informations systems advisory council shall (1) recommend to the 
 42.13  commissioners of state departments, the legislative auditor, and 
 42.14  the state auditor a method for the expeditious gathering and 
 42.15  reporting of information and data between agencies and units of 
 42.16  local government in accordance with cooperatively developed 
 42.17  standards; (2) elect an executive committee, not to exceed seven 
 42.18  members from its membership; (3) develop an annual plan, to 
 42.19  include administration and evaluation of grants, in compliance 
 42.20  with applicable rules; (4) provide technical information systems 
 42.21  assistance or guidance to local governments for development, 
 42.22  implementation, and modification of automated systems, including 
 42.23  formation of consortiums for those systems; and (5) appoint 
 42.24  committees and task forces, which may include persons other than 
 42.25  council members, to assist the council in carrying out its 
 42.26  duties; (6) select an executive director to serve the council 
 42.27  and employ any other necessary employees, all of whom serve in 
 42.28  the classified state civil service; (7) if necessary, contract 
 42.29  for professional and other similar services; and (8) work with 
 42.30  the information policy office to ensure that information systems 
 42.31  developed by state agencies that impact local government will be 
 42.32  reviewed by the council. 
 42.33     Sec. 64.  [16B.485] [INTERFUND LOANS.] 
 42.34     The commissioner may, with the approval of the commissioner 
 42.35  of finance, make loans from an internal service or enterprise 
 42.36  fund to another internal service or enterprise fund. 
 43.1      Sec. 65.  Minnesota Statutes 1994, section 16D.02, is 
 43.2   amended by adding a subdivision to read: 
 43.3      Subd. 8.  [ENTERPRISE.] "Enterprise" means the Minnesota 
 43.4   collection enterprise, a separate unit established to carry out 
 43.5   the provisions of this chapter, pursuant to the commissioner's 
 43.6   authority to contract with the commissioner of revenue for 
 43.7   collection services under section 16D.04, subdivision 1. 
 43.8      Sec. 66.  Minnesota Statutes 1994, section 16D.04, 
 43.9   subdivision 1, is amended to read: 
 43.10     Subdivision 1.  [DUTIES.] The commissioner shall provide 
 43.11  services to the state and its agencies to collect debts owed the 
 43.12  state.  The commissioner is not a collection agency as defined 
 43.13  by section 332.31, subdivision 3, and is not licensed, bonded, 
 43.14  or regulated by the commissioner of commerce under sections 
 43.15  332.31 to 332.35 or 332.38 to 332.45.  The commissioner is 
 43.16  subject to section 332.37, except clause (9) or (10).  The 
 43.17  commissioner may contract with the commissioner of revenue for 
 43.18  collection services, and may delegate to the commissioner of 
 43.19  revenue any of the commissioner's duties and powers under this 
 43.20  chapter.  Debts referred to the commissioner of revenue for 
 43.21  collection under this section or section 256.9792 may in turn be 
 43.22  referred by the commissioner of revenue to the enterprise.  An 
 43.23  audited financial statement may not be required as a condition 
 43.24  of debt placement with a private agency if the private agency:  
 43.25  (1) has errors and omissions coverage under a professional 
 43.26  liability policy in an amount of at least $1,000,000; or (2) has 
 43.27  a fidelity bond to cover actions of its employees, in an amount 
 43.28  of at least $100,000.  In cases of debts referred under section 
 43.29  256.9792, the provisions of this chapter and section 256.9792 
 43.30  apply to the extent they are not in conflict.  If they are in 
 43.31  conflict, the provisions of section 256.9792 control.  For 
 43.32  purposes of this chapter, the referring agency for such debts 
 43.33  remains the department of human services. 
 43.34     Sec. 67.  Minnesota Statutes 1994, section 16D.04, 
 43.35  subdivision 3, is amended to read: 
 43.36     Subd. 3.  [SERVICES.] The commissioner shall provide 
 44.1   collection services for a state agency, and may provide for 
 44.2   collection services for the University of Minnesota or a 
 44.3   court, any of the other entities described in section 16D.02, 
 44.4   subdivision 6, in accordance with the terms and conditions of a 
 44.5   signed debt qualification plan.  
 44.6      Sec. 68.  Minnesota Statutes 1994, section 16D.06, is 
 44.7   amended to read: 
 44.8      16D.06 [DEBTOR INFORMATION.] 
 44.9      Subdivision 1.  [ACCESS TO GOVERNMENT DATA NOT PUBLIC.] 
 44.10  Notwithstanding chapter 13 or any other state law classifying or 
 44.11  restricting access to government data, upon request from the 
 44.12  commissioner or the attorney general, state agencies, political 
 44.13  subdivisions, and statewide systems shall disseminate not public 
 44.14  data to the commissioner or the attorney general for the sole 
 44.15  purpose of collecting debt.  Not public data disseminated under 
 44.16  this subdivision is limited to financial data of the debtor or 
 44.17  data related to the location of the debtor or the assets of the 
 44.18  debtor. 
 44.19     Subd. 2.  [DISCLOSURE OF DATA.] Data received, collected, 
 44.20  created, or maintained by the commissioner or the attorney 
 44.21  general to collect debts are classified as private data on 
 44.22  individuals under section 13.02, subdivision 12, or nonpublic 
 44.23  data under section 13.02, subdivision 9.  The commissioner or 
 44.24  the attorney general may disclose not public data: 
 44.25     (1) under section 13.05; 
 44.26     (2) under court order; 
 44.27     (3) under a statute specifically authorizing access to the 
 44.28  not public data; 
 44.29     (4) to provide notices required or permitted by statute; 
 44.30     (5) to an agent of the commissioner, including a law 
 44.31  enforcement person, attorney, or investigator acting for the 
 44.32  commissioner in the investigation or prosecution of a criminal 
 44.33  or civil proceeding relating to collection of a debt; 
 44.34     (6) to report names of debtors, amount of debt, date of 
 44.35  debt, and the agency to whom debt is owed to credit bureaus and 
 44.36  private collection agencies under contract with the 
 45.1   commissioner; and 
 45.2      (7) when necessary to locate the debtor, locate the assets 
 45.3   of the debtor, or to enforce or implement the collection of a 
 45.4   debt; and 
 45.5      (8) to the commissioner of revenue for tax administration 
 45.6   purposes. 
 45.7      The commissioner and the attorney general may not disclose 
 45.8   data that is not public to a private collection agency or other 
 45.9   entity with whom the commissioner has contracted under section 
 45.10  16D.04, subdivision 4, unless disclosure is otherwise authorized 
 45.11  by law. 
 45.12     Sec. 69.  Minnesota Statutes 1994, section 16D.08, 
 45.13  subdivision 2, is amended to read: 
 45.14     Subd. 2.  [POWERS.] In addition to the collection remedies 
 45.15  available to private collection agencies in this state, the 
 45.16  commissioner, with legal assistance from the attorney general, 
 45.17  may utilize any statutory authority granted to a referring 
 45.18  agency for purposes of collecting debt owed to that referring 
 45.19  agency.  The commissioner may also use the tax collection 
 45.20  remedies of the commissioner of revenue in sections 270.06, 
 45.21  clauses (7) and (17), excluding the power to subpoena witnesses; 
 45.22  270.66; 270.69, excluding subdivisions 7 and 13; 270.70, 
 45.23  excluding subdivision 14; 270.7001 to 270.72; and 290.92, 
 45.24  subdivision 23, except that a continuous wage levy under section 
 45.25  290.92, subdivision 23, is only effective for 70 days, unless no 
 45.26  competing wage garnishments, executions, or levies are served 
 45.27  within the 70-day period, in which case a wage levy is 
 45.28  continuous until a competing garnishment, execution, or levy is 
 45.29  served in the second or a succeeding 70-day period, in which 
 45.30  case a continuous wage levy is effective for the remainder of 
 45.31  that period.  A debtor who qualifies for cancellation of the 
 45.32  collection penalty under section 16D.11, subdivision 3, clause 
 45.33  (1), can apply to the commissioner for reduction or release of a 
 45.34  continuous wage levy, if the debtor establishes that he or she 
 45.35  needs all or a portion of the wages being levied upon to pay for 
 45.36  essential living expenses, such as food, clothing, shelter, 
 46.1   medical care, or expenses necessary for maintaining employment.  
 46.2   The commissioner's determination not to reduce or release a 
 46.3   continuous wage levy is appealable to district court.  The word 
 46.4   "tax" or "taxes" when used in the tax collection statutes listed 
 46.5   in this subdivision also means debts referred under this 
 46.6   chapter.  For debts other than state taxes or child support, 
 46.7   before any of the tax collection remedies listed in this 
 46.8   subdivision can be used, except for the remedies in section 
 46.9   270.06, clauses (7) and (17), if the referring agency has not 
 46.10  already obtained a judgment or filed a lien, the commissioner 
 46.11  must first obtain a judgment against the debtor. 
 46.12     Sec. 70.  [16D.11] [COLLECTION PENALTY.] 
 46.13     Subdivision 1.  [IMPOSITION AS DETERMINED BY THE 
 46.14  COMMISSIONER.] A penalty shall be added to the debts referred to 
 46.15  the commissioner or private collection agency for collection.  
 46.16  The penalty is collectible by the commissioner or private 
 46.17  collection agency from the debtor at the same time and in the 
 46.18  same manner as the referred debt.  The referring agency shall 
 46.19  advise the debtor of the penalty at the time the agency sends 
 46.20  notice to the debtor under section 16D.07.  If the commissioner 
 46.21  or private collection agency collects an amount less than the 
 46.22  total due, the payment is applied proportionally to the penalty 
 46.23  and the underlying debt.  Penalties collected under this 
 46.24  subdivision or retained under subdivision 6 shall be deposited 
 46.25  in the general fund as nondedicated receipts. 
 46.26     Subd. 2.  [COMPUTATION.] Beginning July 1, 1995, at the 
 46.27  time a debt is referred, the amount of the penalty is equal to 
 46.28  15 percent of the debt, or 25 percent of the debt remaining 
 46.29  unpaid if the commissioner or private collection agency has to 
 46.30  take enforced collection action by serving a summons and 
 46.31  complaint on or entering judgment against the debtor, or by 
 46.32  utilizing any of the remedies authorized under section 16D.08, 
 46.33  subdivision 2, except for the remedies in sections 270.06, 
 46.34  clause (7), and 270.66. 
 46.35     Subd. 3.  [CANCELLATION.] The penalty imposed under 
 46.36  subdivision 1 shall be canceled and subtracted from the amount 
 47.1   due if: 
 47.2      (1) the debtor's household income as defined in section 
 47.3   290A.03, subdivision 5, excluding the exemption subtractions in 
 47.4   subdivision 3, paragraph (3) of that section, for the 12 months 
 47.5   preceding the date of referral is less than twice the annual 
 47.6   federal poverty guideline under United States Code, title 42, 
 47.7   section 9902, subsection (2); 
 47.8      (2) within 60 days after the first contact with the debtor 
 47.9   by the enterprise, the debtor establishes reasonable cause for 
 47.10  the failure to pay the debt prior to referral of the debt to the 
 47.11  enterprise; 
 47.12     (3) a good faith dispute as to the legitimacy or the amount 
 47.13  of the debt is made, and payment is remitted or a payment 
 47.14  agreement is entered into within 30 days after resolution of the 
 47.15  dispute; 
 47.16     (4) good faith litigation occurs and the debtor's position 
 47.17  is substantially justified, and if the debtor does not totally 
 47.18  prevail, the debt is paid or a payment agreement is entered into 
 47.19  within 30 days after the judgment becomes final and 
 47.20  nonappealable; or 
 47.21     (5) penalties have been added by the referring agency and 
 47.22  are included in the amount of the referred debt. 
 47.23     Subd. 4.  [APPEAL.] Decisions of the commissioner denying 
 47.24  an application to cancel the penalty under subdivision 3 are 
 47.25  subject to the contested case procedure under chapter 14. 
 47.26     Subd. 5.  [REFUND.] If a penalty is collected and then 
 47.27  canceled, the amount of the penalty shall be refunded to the 
 47.28  debtor within 30 days.  The amount necessary to pay the refunds 
 47.29  is annually appropriated to the commissioner. 
 47.30     Subd. 6.  [CHARGE TO REFERRING AGENCY.] If the penalty is 
 47.31  canceled under subdivision 3, an amount equal to the penalty is 
 47.32  retained by the commissioner from the debt collected, and is 
 47.33  accounted for and subject to the same provisions of this chapter 
 47.34  as if the penalty had been collected from the debtor. 
 47.35     Subd. 7.  [ADJUSTMENT OF RATE.] By June 1 of each year, the 
 47.36  commissioner shall determine the rate of the penalty for debts 
 48.1   referred to the enterprise during the next fiscal year.  The 
 48.2   rate is a percentage of the debts in an amount that most nearly 
 48.3   equals the costs of the enterprise necessary to process and 
 48.4   collect referred debts under this chapter.  In no event shall 
 48.5   the rate of the penalty when a debt is first referred exceed 
 48.6   three-fifths of the maximum penalty, and in no event shall the 
 48.7   rate of the maximum penalty exceed 25 percent of the debt.  
 48.8   Determination of the rate of the penalty under this section is 
 48.9   not rulemaking under chapter 14, and is not subject to the fee 
 48.10  setting requirements of section 16A.1285. 
 48.11     Sec. 71.  [16D.12] [INTEREST.] 
 48.12     Subdivision 1.  [AUTHORITY.] Unless otherwise provided by 
 48.13  contract out of which the debt arises or by state or federal 
 48.14  law, a state agency shall charge simple interest on debts owed 
 48.15  to the state at the rate provided in subdivision 2 if notice has 
 48.16  been given in accordance with this subdivision.  Interest 
 48.17  charged under this section begins to accrue on the 30th calendar 
 48.18  day following the state agency's first written demand for 
 48.19  payment that includes notification to the debtor that interest 
 48.20  will begin to accrue on the debt in accordance with this section.
 48.21     Subd. 2.  [COMPUTATION.] Notwithstanding chapter 334, the 
 48.22  rate of interest is the rate determined by the state court 
 48.23  administrator under section 549.09, subdivision 1, paragraph (c).
 48.24     Subd. 3.  [EXCLUSION.] A state agency may not charge 
 48.25  interest under this section on overpayments of assistance 
 48.26  benefits under sections 256.031 to 256.0361, 256.72 to 256.87, 
 48.27  chapters 256D and 256I, or the federal food stamp program.  
 48.28  Notwithstanding this prohibition, any debts that have been 
 48.29  reduced to judgment under these programs are subject to the 
 48.30  interest charges provided under section 549.09. 
 48.31     Sec. 72.  [16D.13] [VENUE.] 
 48.32     The commissioner or attorney general may bring an action to 
 48.33  recover debts owed to the state in Ramsey county district court 
 48.34  or Ramsey county conciliation court, or a district or 
 48.35  conciliation court of any other county at the discretion of the 
 48.36  state.  Before bringing an action under this section in any 
 49.1   county other than the county in which the defendant resides or 
 49.2   where the cause of action arose, the commissioner or the 
 49.3   attorney general must notify the debtor, by certified mail, of 
 49.4   the intent to bring an action in the specified county and 
 49.5   enclose a form for the debtor to use to request that the action 
 49.6   be brought in the county of either the debtor's residence or the 
 49.7   county where the cause of action arose.  If the debtor, within 
 49.8   30 days of the receipt of the notice of intent to bring an 
 49.9   action in a specified county, requests in writing that the 
 49.10  action be brought in the county of either the debtor's residence 
 49.11  or the county where the cause of action arose, that request must 
 49.12  be granted by the commissioner or the attorney general, and any 
 49.13  subsequent action must be venued in accordance with the request 
 49.14  of the debtor.  If the debtor does not make a timely request 
 49.15  under this section, venue is as chosen by the commissioner or 
 49.16  attorney general. 
 49.17     Sec. 73.  [16D.14] [COMPROMISE OF DEBT.] 
 49.18     Unless expressly prohibited by other federal or state law, 
 49.19  a state agency may compromise debts owed to the state, whether 
 49.20  reduced to judgment or not, where the state agency determines 
 49.21  that it is in the best interests of the state to do so. 
 49.22     Sec. 74.  [16D.16] [SETOFFS.] 
 49.23     Subdivision 1.  [AUTHORIZATION.] The commissioner or a 
 49.24  state agency may automatically deduct the amount of a debt owed 
 49.25  to the state from any state payment of $5,000 or more due to the 
 49.26  debtor, except that funds exempt under section 550.37 or funds 
 49.27  owed an individual who receives assistance under the provisions 
 49.28  of chapter 256 are not subject to setoff.  If a debtor has 
 49.29  entered into a written payment plan with respect to payment of a 
 49.30  specified debt, the right of setoff may not be used to satisfy 
 49.31  that debt.  Notwithstanding section 181.79, the state may deduct 
 49.32  from the wages due or earned by a state employee to collect a 
 49.33  debt, subject to the limitations in section 571.922. 
 49.34     Subd. 2.  [NOTICE AND HEARING.] The commissioner or state 
 49.35  agency shall mail written notice, by certified mail, to the 
 49.36  debtor, addressed to the debtor's last known address, that the 
 50.1   commissioner or state agency intends to set off a debt owed to 
 50.2   the state by the debtor against future payments due the debtor 
 50.3   from the state.  The commissioner or state agency shall notify 
 50.4   the debtor within ten days that a setoff has occurred.  If the 
 50.5   debt owed to the state has not been reduced to judgment or a 
 50.6   lien, the notice to the debtor must indicate that the debtor has 
 50.7   the right to make a written request for a contested case hearing 
 50.8   on the validity of the debt or the right to setoff.  The debtor 
 50.9   has 30 days from the date of that notice to make a written 
 50.10  request for a contested case hearing to contest the validity of 
 50.11  the prejudgment debt or the right to setoff.  The debtor's 
 50.12  request must state the debtor's reasons for contesting the debt 
 50.13  or the right to setoff.  If the commissioner or state agency 
 50.14  desires to pursue the right to setoff following receipt of the 
 50.15  debtor's request for a hearing under this section, the 
 50.16  commissioner or state agency shall schedule a contested case 
 50.17  hearing within 30 days of the receipt of the request for the 
 50.18  hearing.  If the commissioner or state agency decides not to 
 50.19  pursue the right to setoff, the debtor must be notified of that 
 50.20  decision. 
 50.21     Sec. 75.  [PILOT PROGRAM.] 
 50.22     The commissioner of finance shall initiate a pilot program 
 50.23  to compare effectiveness and efficiencies of the Minnesota 
 50.24  collection enterprise and private collection agencies.  The 
 50.25  commissioner shall issue a request for proposals and place at 
 50.26  least $35,000,000 of state debt with private collection agencies 
 50.27  no later than January 1, 1996.  In placing debt with private 
 50.28  collection agencies, the commissioner must consider the 
 50.29  following factors in comparison to the enterprise:  age and size 
 50.30  of the debt, type of debt, and direct and indirect costs of 
 50.31  collecting the debt.  Eligible private collection agencies are 
 50.32  those not currently under contract with the commissioner.  The 
 50.33  commissioner shall report back to the legislature by February 1, 
 50.34  1997. 
 50.35     Sec. 76.  Minnesota Statutes 1994, section 115C.02, is 
 50.36  amended by adding a subdivision to read: 
 51.1      Subd. 6a.  [FUND.] "Fund" means the petroleum tank release 
 51.2   cleanup fund. 
 51.3      Sec. 77.  Minnesota Statutes 1994, section 115C.08, 
 51.4   subdivision 1, is amended to read: 
 51.5      Subdivision 1.  [REVENUE SOURCES.] Revenue from the 
 51.6   following sources must be deposited in the state treasury and 
 51.7   credited to a petroleum tank release cleanup account in the 
 51.8   environmental fund: 
 51.9      (1) the proceeds of the fee imposed by subdivision 3; 
 51.10     (2) money recovered by the state under sections 115C.04, 
 51.11  115C.05, and 116.491, including administrative expenses, civil 
 51.12  penalties, and money paid under an agreement, stipulation, or 
 51.13  settlement; 
 51.14     (3) interest attributable to investment of money in the 
 51.15  account fund; 
 51.16     (4) money received by the board and agency in the form of 
 51.17  gifts, grants other than federal grants, reimbursements, or 
 51.18  appropriations from any source intended to be used for the 
 51.19  purposes of the account fund; 
 51.20     (5) fees charged for the operation of the tank installer 
 51.21  certification program established under section 116.491; and 
 51.22     (6) money obtained from the return of reimbursements, civil 
 51.23  penalties, or other board action under this chapter. 
 51.24     Sec. 78.  Minnesota Statutes 1994, section 115C.08, 
 51.25  subdivision 2, is amended to read: 
 51.26     Subd. 2.  [IMPOSITION OF FEE.] The board shall notify the 
 51.27  commissioner of revenue if the unencumbered balance of the 
 51.28  account fund falls below $4,000,000, and within 60 days after 
 51.29  receiving notice from the board, the commissioner of revenue 
 51.30  shall impose the fee established in subdivision 3 on the use of 
 51.31  a tank for four calendar months, with payment to be submitted 
 51.32  with each monthly distributor tax return. 
 51.33     Sec. 79.  Minnesota Statutes 1994, section 115C.08, 
 51.34  subdivision 4, is amended to read: 
 51.35     Subd. 4.  [EXPENDITURES.] (a) Money in the account fund may 
 51.36  only be spent:  
 52.1      (1) to administer the petroleum tank release cleanup 
 52.2   program established in this chapter; 
 52.3      (2) for agency administrative costs under sections 116.46 
 52.4   to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 52.5   action taken by the agency under section 115C.03, including 
 52.6   investigations; 
 52.7      (3) for costs of recovering expenses of corrective actions 
 52.8   under section 115C.04; 
 52.9      (4) for training, certification, and rulemaking under 
 52.10  sections 116.46 to 116.50; 
 52.11     (5) for agency administrative costs of enforcing rules 
 52.12  governing the construction, installation, operation, and closure 
 52.13  of aboveground and underground petroleum storage tanks; 
 52.14     (6) for reimbursement of the harmful substance compensation 
 52.15  account under subdivision 5 and section 115B.26, subdivision 4; 
 52.16  and 
 52.17     (7) for administrative and staff costs as set by the board 
 52.18  to administer the petroleum tank release program established in 
 52.19  this chapter. 
 52.20     (b) Money in the account fund is appropriated to the board 
 52.21  to make reimbursements or payments under this section. 
 52.22     Sec. 80.  Minnesota Statutes 1994, section 116G.15, is 
 52.23  amended to read: 
 52.24     116G.15 [MISSISSIPPI RIVER CRITICAL AREA.] 
 52.25     (a) The federal Mississippi National River and Recreation 
 52.26  Area established pursuant to United States Code, title 16, 
 52.27  section 460zz-2(k), is designated an area of critical concern in 
 52.28  accordance with this chapter.  The governor shall review the 
 52.29  existing Mississippi river critical area plan and specify any 
 52.30  additional standards and guidelines to affected communities in 
 52.31  accordance with section 116G.06, subdivision 2, paragraph (b), 
 52.32  clauses (3) and (4), needed to insure preservation of the area 
 52.33  pending the completion of the federal plan. 
 52.34     The results of an environmental impact statement prepared 
 52.35  under chapter 116D and completed after July 1, 1994, for a 
 52.36  proposed project that is located in the Mississippi river 
 53.1   critical area north of the United States Army Corps of Engineers 
 53.2   Lock and Dam Number One must be submitted in a report to the 
 53.3   chairs of the environment and natural resources policy and 
 53.4   finance committees of the house of representatives and the 
 53.5   senate prior to the issuance of any state or local permits and 
 53.6   the authorization for an issuance of any bonds for the project.  
 53.7   A report made under this paragraph shall be submitted by the 
 53.8   responsible governmental unit that prepared the environmental 
 53.9   impact statement, and must list alternatives to the project that 
 53.10  are determined by the environmental impact statement to be 
 53.11  economically feasible and environmentally superior to the 
 53.12  proposed project and identify any legislative actions that may 
 53.13  assist in the implementation of environmentally superior 
 53.14  alternatives.  This paragraph does not apply to a proposed 
 53.15  project to be carried out by the metropolitan council or a 
 53.16  metropolitan agency as defined in section 473.121. 
 53.17     (b) If the results of an environmental impact statement 
 53.18  required to be submitted by paragraph (a) indicate that there is 
 53.19  an economically feasible and environmentally superior 
 53.20  alternative, then no member agency of the environmental quality 
 53.21  board shall issue a permit for the facility that is the subject 
 53.22  of the environmental impact statement, nor shall any government 
 53.23  bonds be issued for the facility, unless specifically authorized 
 53.24  by the legislature. 
 53.25     Sec. 81.  Minnesota Statutes 1994, section 197.05, is 
 53.26  amended to read: 
 53.27     197.05 [FUND, HOW EXPENDED.] 
 53.28     The state soldiers' assistance fund shall be administered 
 53.29  by the commissioner of veterans affairs and shall be used to 
 53.30  locate and investigate the facts as to any citizen of Minnesota 
 53.31  or resident alien residing in Minnesota who served in the 
 53.32  military or naval forces of the United States and who is 
 53.33  indigent or suffering from any disability whether acquired in 
 53.34  the service or not; to assist the person and the person's 
 53.35  dependents as hereinafter provided in establishing and proving 
 53.36  any just claim the person may have against the United States 
 54.1   government, or any other government or state for compensation, 
 54.2   insurance, relief, or other benefits; to provide emergency 
 54.3   hospitalization, treatment, maintenance, and relief for any 
 54.4   person suffering from disability who was a bona fide resident of 
 54.5   the state at the time the need arose and the person's 
 54.6   dependents, as hereinafter provided; and to cooperate with other 
 54.7   state, municipal, and county officials and civic or civilian 
 54.8   agencies or organizations in carrying out the provisions of 
 54.9   sections 197.01 to 197.07.  The commissioner shall limit 
 54.10  financial assistance to veterans and dependents to six months, 
 54.11  unless recipients have been certified as ineligible for other 
 54.12  benefit programs. 
 54.13     The fund is appropriated to be used in the manner 
 54.14  determined by the commissioner of veterans affairs for these 
 54.15  purposes. 
 54.16     Sec. 82.  Minnesota Statutes 1994, section 240.011, is 
 54.17  amended to read: 
 54.18     240.011 [APPOINTMENT OF DIRECTOR.] 
 54.19     The governor shall appoint the a director of the Minnesota 
 54.20  racing commission pari-mutuel racing, who serves in the 
 54.21  unclassified service at the governor's pleasure.  The director 
 54.22  must be a person qualified by experience in the administration 
 54.23  and regulation of pari-mutuel racing to discharge the duties of 
 54.24  the director.  The governor must select a director from a list 
 54.25  of one or more names submitted by the Minnesota racing 
 54.26  commission.  
 54.27     Sec. 83.  Minnesota Statutes 1994, section 240.03, is 
 54.28  amended to read: 
 54.29     240.03 [COMMISSION POWERS AND DUTIES.] 
 54.30     The commission director has the following powers and duties:
 54.31     (1) to regulate horse racing in Minnesota to ensure that it 
 54.32  is conducted in the public interest; 
 54.33     (2) to issue licenses as provided in this chapter; 
 54.34     (3) to enforce all laws and rules governing horse racing; 
 54.35     (4) to collect and distribute all taxes provided for in 
 54.36  this chapter; 
 55.1      (5) to conduct necessary investigations and inquiries and 
 55.2   compel the submission of information, documents, and records it 
 55.3   the director deems necessary to carry out its the director's 
 55.4   duties; 
 55.5      (6) to supervise the conduct of pari-mutuel betting on 
 55.6   horse racing; 
 55.7      (7) to employ and supervise personnel under this chapter; 
 55.8      (8) to determine the number of racing days to be held in 
 55.9   the state and at each licensed racetrack; and 
 55.10     (9) to take all necessary steps to ensure the integrity of 
 55.11  racing in Minnesota.  
 55.12     Sec. 84.  Minnesota Statutes 1994, section 240.04, is 
 55.13  amended to read: 
 55.14     240.04 [EMPLOYEES.] 
 55.15     Subdivision 1.  [DIRECTOR; DUTIES.] The director shall 
 55.16  perform the following duties:  
 55.17     (a) take and preserve records of all proceedings before the 
 55.18  commission, maintain its books, documents, and records, and make 
 55.19  them available for public inspection as the commission directs; 
 55.20     (b) if so designated by the commission, act as a hearing 
 55.21  officer in hearings which need not be conducted under the 
 55.22  administrative procedure act to conduct hearings, receive 
 55.23  testimony and exhibits, and certify the record of proceedings to 
 55.24  the commission; 
 55.25     (c) act as the commission's chief personnel officer and 
 55.26  supervise the employment, conduct, duties, and discipline of 
 55.27  commission employees; and 
 55.28     (d) perform other duties as directed by the commission.  
 55.29     Subd. 1a.  [DEPUTY DIRECTOR.] The commission may appoint a 
 55.30  deputy director who serves in the unclassified service at the 
 55.31  commission's pleasure. 
 55.32     Subd. 2.  [DIRECTOR OF PARI-MUTUELS.] The commission 
 55.33  director may employ a director of pari-mutuels who serves in the 
 55.34  unclassified service at the commission's director's pleasure.  
 55.35  The director of pari-mutuels shall perform the following duties: 
 55.36     (a) supervise all forms of pari-mutuel betting on horse 
 56.1   racing in the state; 
 56.2      (b) inspect all machinery; 
 56.3      (c) make reports on pari-mutuel betting as the commission 
 56.4   director directs; 
 56.5      (d) subject to commission director approval, appoint 
 56.6   assistants to perform duties the commission director designates; 
 56.7   and 
 56.8      (e) perform other duties as directed by the commission 
 56.9   director.  
 56.10     If no director of pari-mutuels is appointed the duties of 
 56.11  that office are assigned to the executive director.  The 
 56.12  commission may contract with outside services or personnel to 
 56.13  assist the executive director in the performance of these duties.
 56.14     Subd. 3.  [DIRECTOR OF RACING SECURITY.] The commission 
 56.15  director may appoint a director of racing security to serve in 
 56.16  the unclassified service at the commission's director's 
 56.17  pleasure.  The director of racing security shall enforce all 
 56.18  laws and commission rules relating to the security and integrity 
 56.19  of racing.  The director of racing security and all other 
 56.20  persons designated by the commission director as security 
 56.21  officers have free and open access to all areas of all 
 56.22  facilities the commission director licenses and may search 
 56.23  without a search warrant any part of a licensed racetrack and 
 56.24  the person of any licensee of the commission director on the 
 56.25  premises.  The director of racing security may order a licensee 
 56.26  to take, at the licensee's expense, security measures necessary 
 56.27  to protect the integrity of racing, but the order may be 
 56.28  appealed to the commission director.  Nothing in this chapter 
 56.29  prohibits law enforcement authorities and agents from entering, 
 56.30  in the performance of their duties, a premises licensed under 
 56.31  Laws 1983, chapter 214.  
 56.32     If no director of racing security is appointed the duties 
 56.33  of that office are assigned to the executive director.  The 
 56.34  commission may contract with outside services or personnel to 
 56.35  assist the executive director in the performance of these duties.
 56.36     Subd. 4.  [VETERINARIAN.] The commission director may 
 57.1   appoint a veterinarian who must be a doctor of veterinary 
 57.2   medicine and who serves at its the director's pleasure in the 
 57.3   unclassified service.  The veterinarian shall, while employed by 
 57.4   the commission director, perform the following duties:  
 57.5      (a) supervise the formulation, administration, and 
 57.6   evaluation of all medical tests the commission's director's 
 57.7   rules require or authorize; 
 57.8      (b) advise the commission director on all aspects of 
 57.9   veterinary medicine relating to its the director's powers and 
 57.10  duties; and 
 57.11     (c) supervise all personnel involved in medical testing, 
 57.12  subject to the supervision of the executive director.  
 57.13     If no veterinarian is appointed, the duties of that office 
 57.14  may be assigned to the executive director.  The commission may 
 57.15  contract with outside personnel to assist the executive director 
 57.16  in the performance of these duties.  
 57.17     The commission director may require that a licensee 
 57.18  reimburse it the state general fund for the costs of services 
 57.19  provided by assistant veterinarians. 
 57.20     Subd. 5.  [OTHER EMPLOYEES.] Subject to applicable laws, 
 57.21  the commission director shall employ and assign duties to other 
 57.22  officers, employees, and agents as it the director deems 
 57.23  necessary to discharge its the director's functions.  
 57.24     Subd. 6.  [COMPENSATION.] The compensation of all 
 57.25  commission employees shall be as provided in chapter 43A. 
 57.26     Subd. 7.  [ASSISTANCE.] The commission and director may 
 57.27  request assistance from any department or agency of the state in 
 57.28  fulfilling its the director's duties, and shall make appropriate 
 57.29  reimbursement for all such assistance.  
 57.30     Sec. 85.  Minnesota Statutes 1994, section 240.155, 
 57.31  subdivision 1, is amended to read: 
 57.32     Subdivision 1.  [REIMBURSEMENT ACCOUNT CREDIT.] Money 
 57.33  received by the commission as reimbursement for the costs of 
 57.34  services provided by assistant veterinarians and, stewards, and 
 57.35  medical testing of horses, must be deposited in the state 
 57.36  treasury and credited to a racing commission reimbursement 
 58.1   account, except as provided under subdivision 2.  Receipts are 
 58.2   appropriated to the commission to pay the costs of providing the 
 58.3   services. 
 58.4      Sec. 86.  Minnesota Statutes 1994, section 240.24, 
 58.5   subdivision 3, is amended to read: 
 58.6      Subd. 3.  [FEES.] The commission shall establish by rule a 
 58.7   fee or schedule of fees to recover the costs of medical testing 
 58.8   of horses running at racetracks licensed by the commission.  
 58.9   Fees charged for the testing of horses shall cover the cost of 
 58.10  the medical testing laboratory.  Fee receipts shall be deposited 
 58.11  in the state treasury and credited to the general fund racing 
 58.12  commission reimbursement account. 
 58.13     Sec. 87.  Minnesota Statutes 1994, section 240.28, is 
 58.14  amended to read: 
 58.15     240.28 [CONFLICT OF INTEREST.] 
 58.16     Subdivision 1.  [FINANCIAL INTEREST.] No person may 
 58.17  serve on as director or be employed by the commission director 
 58.18  who has an interest in any corporation, association, or 
 58.19  partnership which holds a license from the commission director 
 58.20  or which holds a contract to supply goods or services to a 
 58.21  licensee or at a licensed racetrack, including concessions 
 58.22  contracts.  No member or Neither the director nor an employee of 
 58.23  the commission director may own, wholly or in part, or have an 
 58.24  interest in a horse which races at a licensed racetrack in 
 58.25  Minnesota.  No member or Neither the director nor an employee of 
 58.26  the commission director may have a financial interest in or be 
 58.27  employed in a profession or business which conflicts with the 
 58.28  performance of duties as a member director or employee. 
 58.29     Subd. 2.  [BETTING.] No member or Neither the director nor 
 58.30  an employee of the commission director may bet or cause a bet to 
 58.31  be made on a race at a licensed racetrack while serving on or 
 58.32  being employed by the commission.  No person appointed or 
 58.33  approved by the director as a steward may bet or cause a bet to 
 58.34  be made at a licensed racetrack during a racing meeting at which 
 58.35  the person is serving as a steward.  The commission director 
 58.36  shall by rule prescribe such restrictions on betting by its 
 59.1   director's licensees as it the director deems necessary to 
 59.2   protect the integrity of racing.  
 59.3      Subd. 3.  [VIOLATION.] A violation of subdivisions 1 and 2 
 59.4   is grounds for removal from the commission as director or 
 59.5   termination of employment.  A bet made directly or indirectly by 
 59.6   a licensee in violation of a rule made by the commission 
 59.7   director under subdivision 2 is grounds for suspension or 
 59.8   revocation of the license.  
 59.9      Sec. 88.  [240.30] [COMMISSION ABOLISHED.] 
 59.10     The Minnesota racing commission is abolished on July 1, 
 59.11  1995.  The terms of all members of the commission serving on 
 59.12  that date expire on that date.  All powers, duties, and 
 59.13  responsibilities of the commission are transferred to the 
 59.14  director of pari-mutuel racing. 
 59.15     Sec. 89.  [240A.081] [ALLOCATION OF DATES.] 
 59.16     In each year in which the state makes a $750,000 
 59.17  appropriation under section 240A.08, out of the total of 50 
 59.18  dates per year allocated to the amateur sports commission under 
 59.19  section 240A.08, the metropolitan sports facilities commission 
 59.20  must make available to the amateur sports commission at least 20 
 59.21  dates at the Metrodome. 
 59.22     Sec. 90.  Minnesota Statutes 1994, section 240A.09, is 
 59.23  amended to read: 
 59.24     240A.09 [PLAN DEVELOPMENT; CRITERIA.] 
 59.25     The Minnesota amateur sports commission shall develop a 
 59.26  plan to promote the development of proposals for new statewide 
 59.27  public ice facilities including proposals for ice centers and 
 59.28  matching grants based on the criteria in this section. 
 59.29     (a) For ice center proposals, the commission will give 
 59.30  priority to proposals that come from more than one local 
 59.31  government unit and that, in the metropolitan area as defined in 
 59.32  section 473.121, subdivision 2, involve construction of more 
 59.33  than three at least two ice sheets in a single facility. 
 59.34     (b) The Minnesota amateur sports commission shall 
 59.35  administer a site selection process for the ice centers.  The 
 59.36  commission shall invite proposals from cities or counties or 
 60.1   consortia of cities.  A proposal for an ice center must include 
 60.2   matching contributions including in-kind contributions of land, 
 60.3   access roadways and access roadway improvements, and necessary 
 60.4   utility services, landscaping, and parking. 
 60.5      (c) Proposals for ice centers and matching grants must 
 60.6   provide for meeting the demand for ice time for female groups by 
 60.7   offering up to 50 percent of prime ice time, as needed, to 
 60.8   female groups.  For purposes of this section, prime ice time 
 60.9   means the hours of 4:00 p.m. to 10:00 p.m. Monday to Friday and 
 60.10  9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.  
 60.11     (d) The location for all proposed facilities must be in 
 60.12  areas of maximum demonstrated interest and must maximize 
 60.13  accessibility to an arterial highway. 
 60.14     (e) To the extent possible, all proposed facilities must be 
 60.15  dispersed equitably and must be located to maximize potential 
 60.16  for full utilization and profitable operation. 
 60.17     (f) The Minnesota amateur sports commission may also use 
 60.18  the funds to upgrade current facilities, purchase girls' ice 
 60.19  time, or conduct amateur women's hockey and other ice sport 
 60.20  tournaments. 
 60.21     (g) To the extent possible, 50 percent of all grants must 
 60.22  be awarded to communities in greater Minnesota.  
 60.23     (h) To the extent possible, technical assistance shall be 
 60.24  provided to Minnesota communities by the commission on ice arena 
 60.25  planning, design, and operation, including the marketing of ice 
 60.26  time. 
 60.27     (i) The commission may use funds for rehabilitation and 
 60.28  renovation grants.  Priority must be given to grant applications 
 60.29  for indoor air quality improvements, including zero emission ice 
 60.30  resurfacing equipment. 
 60.31     (j) At least ten percent of the grant funds must be used 
 60.32  for ice centers designed for sports other than hockey. 
 60.33     Sec. 91.  Minnesota Statutes 1994, section 240A.10, is 
 60.34  amended to read: 
 60.35     240A.10 [AGREEMENTS.] 
 60.36     Subdivision 1.  [ICE ARENA FACILITIES.] The Minnesota 
 61.1   amateur sports commission may enter into agreements with local 
 61.2   units of government and provide financial assistance in the form 
 61.3   of grants for the construction of ice arena facilities that in 
 61.4   the determination of the commission, conform to its criteria. 
 61.5      Subd. 2.  [EQUIPMENT; REVOLVING FUND.] The commission may 
 61.6   enter into cooperative purchasing agreements under section 
 61.7   471.59 with local governments to purchase ice arena equipment 
 61.8   and services through state contracts.  The cooperative ice arena 
 61.9   equipment purchasing revolving fund is a separate account in the 
 61.10  state treasury.  The commission may charge a fee to cover the 
 61.11  commission's administrative expenses to government units that 
 61.12  have joint or cooperative purchasing agreements with the state 
 61.13  under section 471.59.  The fees collected must be deposited in 
 61.14  the revolving fund established by this subdivision.  Money in 
 61.15  the fund is appropriated to the commission to administer the 
 61.16  programs and services covered by this subdivision. 
 61.17     Sec. 92.  Minnesota Statutes 1994, section 299L.02, 
 61.18  subdivision 2, is amended to read: 
 61.19     Subd. 2.  [GAMBLING.] The director shall:  
 61.20     (1) conduct background investigations of applicants for 
 61.21  licensing as a manufacturer or distributor of gambling equipment 
 61.22  or as a bingo hall under chapter 349; and 
 61.23     (2) when requested by the director of lawful gambling 
 61.24  control, or when the director believes it to be reasonable and 
 61.25  necessary, inspect the premises of a licensee under chapter 349 
 61.26  to determine compliance with law and with the rules of the board 
 61.27  director of lawful gambling, or to conduct an audit of the 
 61.28  accounts, books, records, or other documents required to be kept 
 61.29  by the licensee. 
 61.30     The director may charge applicants under clause (1) a 
 61.31  reasonable fee to cover the costs of the investigation. 
 61.32     Sec. 93.  Minnesota Statutes 1994, section 349.12, 
 61.33  subdivision 10, is amended to read: 
 61.34     Subd. 10.  [DIRECTOR.] "Director" is the director of 
 61.35  the lawful gambling control board.  
 61.36     Sec. 94.  Minnesota Statutes 1994, section 349.151, is 
 62.1   amended to read: 
 62.2      349.151 [DIRECTOR OF LAWFUL GAMBLING CONTROL BOARD.] 
 62.3      Subdivision 1.  [BOARD CREATED.] The gambling control board 
 62.4   is created with the powers and duties established by subdivision 
 62.5   4.  
 62.6      Subd. 2.  [MEMBERSHIP.] (a) On and after July 1, 1991, the 
 62.7   board consists of seven members, as follows:  (1) those members 
 62.8   appointed by the governor before July 1, 1991, whose terms 
 62.9   expire June 30, 1992, June 30, 1993, and June 30, 1994; (2) one 
 62.10  member appointed by the governor for a term expiring June 30, 
 62.11  1994; (3) one member appointed by the commissioner of public 
 62.12  safety for a term expiring June 30, 1995; and (4) one member 
 62.13  appointed by the attorney general for a term expiring June 30, 
 62.14  1995. 
 62.15     (b) All appointments under this subdivision are with the 
 62.16  advice and consent of the senate. 
 62.17     (c) After expiration of the initial terms, appointments are 
 62.18  for four years. 
 62.19     (d) The board shall select one of its members to serve as 
 62.20  chair.  No more than three members appointed by the governor 
 62.21  under this subdivision may belong to the same political party. 
 62.22     Subd. 3a.  [COMPENSATION.] The compensation of board 
 62.23  members is as provided in section 15.0575, subdivision 3. 
 62.24     Subd. 3b.  [DIRECTOR.] A director of lawful gambling shall 
 62.25  be appointed by the governor with the advice and consent of the 
 62.26  senate.  The director serves in the unclassified service at the 
 62.27  pleasure of the governor. 
 62.28     Subd. 4.  [POWERS AND DUTIES.] (a) The board director has 
 62.29  the following powers and duties:  
 62.30     (1) to regulate lawful gambling to ensure it is conducted 
 62.31  in the public interest; 
 62.32     (2) to issue licenses to organizations, distributors, bingo 
 62.33  halls, manufacturers, and gambling managers; 
 62.34     (3) to collect and deposit license, permit, and 
 62.35  registration fees due under this chapter; 
 62.36     (4) to receive reports required by this chapter and inspect 
 63.1   all premises, records, books, and other documents of 
 63.2   organizations, distributors, manufacturers, and bingo halls to 
 63.3   insure compliance with all applicable laws and rules; 
 63.4      (5) to make rules authorized by this chapter; 
 63.5      (6) to register gambling equipment and issue registration 
 63.6   stamps; 
 63.7      (7) to provide by rule for the mandatory posting by 
 63.8   organizations conducting lawful gambling of rules of play and 
 63.9   the odds and/or house percentage on each form of lawful 
 63.10  gambling; 
 63.11     (8) to report annually to the governor and legislature on 
 63.12  its the director's activities and on recommended changes in the 
 63.13  laws governing gambling; 
 63.14     (9) to impose civil penalties of not more than $500 per 
 63.15  violation on organizations, distributors, manufacturers, bingo 
 63.16  halls, and gambling managers for failure to comply with any 
 63.17  provision of this chapter or any rule or order of the board 
 63.18  director; 
 63.19     (10) to issue premises permits to organizations licensed to 
 63.20  conduct lawful gambling; 
 63.21     (11) to delegate to the director the authority to issue or 
 63.22  deny license and premises permit applications and renewals under 
 63.23  criteria established by the board; 
 63.24     (12) to suspend or revoke licenses and premises permits of 
 63.25  organizations, distributors, manufacturers, bingo halls, or 
 63.26  gambling managers as provided in this chapter; 
 63.27     (13) (12) to register employees of organizations licensed 
 63.28  to conduct lawful gambling; 
 63.29     (14) (13) to require fingerprints from persons determined 
 63.30  by board rule to be subject to fingerprinting; 
 63.31     (15) to delegate to a compliance review group of the board 
 63.32  the authority to investigate alleged violations, issue consent 
 63.33  orders, and initiate contested cases on behalf of the board; 
 63.34     (16) (14) to order organizations, distributors, 
 63.35  manufacturers, bingo halls, and gambling managers to take 
 63.36  corrective actions; and 
 64.1      (17) (15) to take all necessary steps to ensure the 
 64.2   integrity of and public confidence in lawful gambling.  
 64.3      (b) The board, or director if authorized to act on behalf 
 64.4   of the board, may by citation assess any organization, 
 64.5   distributor, manufacturer, bingo hall licensee, or gambling 
 64.6   manager a civil penalty of not more than $500 per violation for 
 64.7   a failure to comply with any provision of this chapter or any 
 64.8   rule adopted or order issued by the board director.  Any 
 64.9   organization, distributor, bingo hall licensee, gambling 
 64.10  manager, or manufacturer assessed a civil penalty under this 
 64.11  paragraph may request a hearing before the board director.  
 64.12  Appeals of citations imposing a civil penalty are not subject to 
 64.13  the provisions of the administrative procedure act.  
 64.14     (c) All fees and penalties received by the board director 
 64.15  must be deposited in the general fund. 
 64.16     Subd. 4a.  [PADDLEWHEEL RULES.] The board shall promulgate 
 64.17  rules governing paddlewheels before July 1, 1992.  The rules 
 64.18  must provide for operation procedures, internal control 
 64.19  standards, posted information, records, and reports. 
 64.20     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
 64.21  The board director may by rule authorize but not require the use 
 64.22  of pull-tab dispensing devices. 
 64.23     (b) Rules adopted under paragraph (a): 
 64.24     (1) must limit the number of pull-tab dispensing devices on 
 64.25  any permitted premises to three; 
 64.26     (2) must limit the use of pull-tab dispensing devices to a 
 64.27  permitted premises which is (i) a licensed premises for on-sales 
 64.28  of intoxicating liquor or 3.2 percent malt beverages or (ii) a 
 64.29  licensed bingo hall that allows gambling only by persons 18 
 64.30  years or older; and 
 64.31     (3) must prohibit the use of pull-tab dispensing devices at 
 64.32  any licensed premises where pull-tabs are sold other than 
 64.33  through a pull-tab dispensing device by an employee of the 
 64.34  organization who is also the lessor or an employee of the lessor.
 64.35     (c) The director shall deposit in a separate account in the 
 64.36  state treasury all money the director receives as reimbursement 
 65.1   for the costs of services provided by independent testing 
 65.2   laboratories that have entered into contracts with the state to 
 65.3   perform testing and analysis of pull-tab dispensing devices.  
 65.4   Money in the account is appropriated to the director to pay the 
 65.5   costs of services under those contracts. 
 65.6      Subd. 5.  [ATTORNEY GENERAL.] The attorney general is the 
 65.7   attorney for the board director.  
 65.8      Subd. 7.  [ORDERS.] The board director may order any person 
 65.9   subject to its the director's jurisdiction who has violated this 
 65.10  chapter or a board rule or order to take appropriate action to 
 65.11  correct the violation. 
 65.12     Subd. 8.  [CRIMINAL HISTORY.] The board director may 
 65.13  request the director of gambling enforcement to assist in 
 65.14  investigating the background of an applicant for a license under 
 65.15  this chapter, and the director of gambling enforcement may bill 
 65.16  the license applicant for the cost thereof.  The board director 
 65.17  has access to all criminal history data compiled by the division 
 65.18  of gambling enforcement on licensees and applicants. 
 65.19     Subd. 9.  [RESPONSE TO REQUESTS.] An applicant, licensee, 
 65.20  or other person subject to the board's director's jurisdiction 
 65.21  must: 
 65.22     (1) comply with requests for information or documents, or 
 65.23  other requests, from the board or director within the time 
 65.24  specified in the request or, if no time is specified, within 30 
 65.25  days of the date the board or director mails the request; and 
 65.26     (2) appear before the board or director when requested to 
 65.27  do so, and must bring documents or materials requested by the 
 65.28  board or director. 
 65.29     Subd. 10.  [PRODUCTION OF EVIDENCE.] For the purpose of any 
 65.30  investigation, inspection, compliance review, audit, or 
 65.31  proceeding under this chapter, the board or director may (1) 
 65.32  administer oaths and affirmations, (2) subpoena witnesses and 
 65.33  compel their attendance, (3) take evidence, and (4) require the 
 65.34  production of books, papers, correspondence, memoranda, 
 65.35  agreements, or other documents or records that the board or 
 65.36  director determines are relevant or material to the inquiry. 
 66.1      Subd. 11.  [COURT ORDERS.] In the event of a refusal to 
 66.2   appear by, or refusal to obey a subpoena issued to, any person 
 66.3   under this chapter, the district court may on application of the 
 66.4   board or director issue to the person an order directing the 
 66.5   person to appear before the board or director, and to produce 
 66.6   documentary evidence if so ordered or to give evidence relating 
 66.7   to the matter under investigation or in question.  Failure to 
 66.8   obey such an order may be punished by the court as contempt of 
 66.9   court. 
 66.10     Subd. 12.  [ACCESS.] The board or director has free access 
 66.11  during normal business hours to the offices and places of 
 66.12  business of licensees or organizations conducting excluded or 
 66.13  exempt gambling, and to all books, accounts, papers, records, 
 66.14  files, safes, and vaults maintained in the places of business or 
 66.15  required to be maintained. 
 66.16     Subd. 13.  [RULEMAKING.] In addition to any authority to 
 66.17  adopt rules specifically authorized under this chapter, the 
 66.18  board director may adopt, amend, or repeal rules, including 
 66.19  emergency rules, under chapter 14, when necessary or proper in 
 66.20  discharging the board's director's powers and duties. 
 66.21     Sec. 95.  Minnesota Statutes 1994, section 349.153, is 
 66.22  amended to read: 
 66.23     349.153 [CONFLICT OF INTEREST.] 
 66.24     (a) A person may not serve on the board, be the director, 
 66.25  or be an employee of the board director, who has an interest in 
 66.26  any corporation, association, limited liability company, or 
 66.27  partnership that is licensed by the board director as a 
 66.28  distributor, manufacturer, or a bingo hall under section 349.164.
 66.29     (b) A member of the board, The director, or an employee of 
 66.30  the board director may not accept employment with, receive 
 66.31  compensation directly or indirectly from, or enter into a 
 66.32  contractual relationship with an organization that conducts 
 66.33  lawful gambling, a distributor, a bingo hall or a manufacturer 
 66.34  while serving as the director or while employed with or a member 
 66.35  of the board by the director, or within one year after 
 66.36  terminating employment with or leaving the board office. 
 67.1      (c) A distributor, bingo hall, manufacturer, or 
 67.2   organization licensed to conduct lawful gambling may not 
 67.3   hire the director or a former employee, director, or member of 
 67.4   the gambling control board of the office for one year after the 
 67.5   employee, or director, or member has terminated employment with 
 67.6   or left the gambling control board service as director or 
 67.7   employee.  
 67.8      Sec. 96.  [349.24] [BOARD ABOLISHED.] 
 67.9      The gambling control board is abolished on July 1, 1995.  
 67.10  The terms of all members serving on the board on that date 
 67.11  expire on that date.  All powers, duties, and responsibilities 
 67.12  of the board are transferred to the director of lawful gambling. 
 67.13     Sec. 97.  Minnesota Statutes 1994, section 349A.02, 
 67.14  subdivision 1, is amended to read: 
 67.15     Subdivision 1.  [DIRECTOR.] A state lottery is established 
 67.16  under the supervision and control of the director of the state 
 67.17  lottery appointed by the governor with the advice and consent of 
 67.18  the senate.  The governor shall appoint the director from a list 
 67.19  of at least three persons recommended to the governor by the 
 67.20  board.  The director must be qualified by experience and 
 67.21  training to supervise the lottery.  The director serves in the 
 67.22  unclassified service.  The annual salary rate authorized for the 
 67.23  director is equal to 80 percent of the salary rate prescribed 
 67.24  for the governor as of the effective date of Laws 1993, chapter 
 67.25  146. 
 67.26     Sec. 98.  Minnesota Statutes 1994, section 349A.03, is 
 67.27  amended by adding a subdivision to read: 
 67.28     Subd. 4.  [BOARD ABOLISHED.] The board is abolished on July 
 67.29  1, 1995.  The terms of all members of the board serving on that 
 67.30  date expire on that date. 
 67.31     Sec. 99.  Minnesota Statutes 1994, section 349A.04, is 
 67.32  amended to read: 
 67.33     349A.04 [LOTTERY GAME PROCEDURES.] 
 67.34     The director may adopt game procedures governing the 
 67.35  following elements of the lottery: 
 67.36     (1) lottery games; 
 68.1      (2) ticket prices; 
 68.2      (3) number and size of prizes; 
 68.3      (4) methods of selecting winning tickets; and 
 68.4      (5) frequency and method of drawings. 
 68.5      The adoption of lottery game procedures is not subject to 
 68.6   chapter 14.  Before adopting a lottery game procedure, the 
 68.7   director shall submit the procedure to the board for its review 
 68.8   and comment. 
 68.9      Sec. 100.  Minnesota Statutes 1994, section 349A.05, is 
 68.10  amended to read: 
 68.11     349A.05 [RULES.] 
 68.12     The director may adopt rules, including emergency rules, 
 68.13  under chapter 14 governing the following elements of the lottery:
 68.14     (1) the number and types of lottery retailers' locations; 
 68.15     (2) qualifications of lottery retailers and application 
 68.16  procedures for lottery retailer contracts; 
 68.17     (3) investigation of lottery retailer applicants; 
 68.18     (4) appeal procedures for denial, suspension, or 
 68.19  cancellation of lottery retailer contracts; 
 68.20     (5) compensation of lottery retailers; 
 68.21     (6) accounting for and deposit of lottery revenues by 
 68.22  lottery retailers; 
 68.23     (7) procedures for issuing lottery procurement contracts 
 68.24  and for the investigation of bidders on those contracts; 
 68.25     (8) payment of prizes; 
 68.26     (9) procedures needed to ensure the integrity and security 
 68.27  of the lottery; and 
 68.28     (10) other rules the director considers necessary for the 
 68.29  efficient operation and administration of the lottery.  
 68.30     Before adopting a rule the director shall submit the rule 
 68.31  to the board for its review and comment.  
 68.32     Sec. 101.  Minnesota Statutes 1994, section 349A.06, 
 68.33  subdivision 2, is amended to read: 
 68.34     Subd. 2.  [QUALIFICATIONS.] (a) The director may not 
 68.35  contract with a retailer who: 
 68.36     (1) is under the age of 18; 
 69.1      (2) is in business solely as a seller of lottery tickets; 
 69.2      (3) owes $500 or more in delinquent taxes as defined in 
 69.3   section 270.72; 
 69.4      (4) has been convicted within the previous five years of a 
 69.5   felony or gross misdemeanor, any crime involving fraud or 
 69.6   misrepresentation, or a gambling-related offense; 
 69.7      (5) is a member of the immediate family, residing in the 
 69.8   same household, as the director, board member, or any employee 
 69.9   of the lottery; 
 69.10     (6) in the director's judgment does not have the financial 
 69.11  stability or responsibility to act as a lottery retailer, or 
 69.12  whose contracting as a lottery retailer would adversely affect 
 69.13  the public health, welfare, and safety, or endanger the security 
 69.14  and integrity of the lottery; or 
 69.15     (7) is a currency exchange, as defined in section 53A.01. 
 69.16     A contract entered into before August 1, 1990, which 
 69.17  violates clause (7) may continue in effect until its expiration 
 69.18  but may not be renewed. 
 69.19     (b) An organization, firm, partnership, or corporation that 
 69.20  has a stockholder who owns more than five percent of the 
 69.21  business or the stock of the corporation, an officer, or 
 69.22  director, that does not meet the requirements of paragraph (a), 
 69.23  clause (4), is not eligible to be a lottery retailer under this 
 69.24  section. 
 69.25     (c) The restrictions under paragraph (a), clause (4), do 
 69.26  not apply to an organization, partnership, or corporation if the 
 69.27  director determines that the organization, partnership, or firm 
 69.28  has terminated its relationship with the individual whose 
 69.29  actions directly contributed to the disqualification under this 
 69.30  subdivision. 
 69.31     Sec. 102.  Minnesota Statutes 1994, section 349A.08, 
 69.32  subdivision 5, is amended to read: 
 69.33     Subd. 5.  [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 
 69.34  lottery must be claimed by the winner within one year of the 
 69.35  date of the drawing at which the prize was awarded or the last 
 69.36  day sales were authorized for a game where a prize was 
 70.1   determined in a manner other than by means of a drawing.  If a 
 70.2   valid claim is not made for a prize payable directly by the 
 70.3   lottery by the end of this period, the unclaimed prize money 
 70.4   must be added by the director to prize pools of subsequent 
 70.5   lottery games the prize money is considered unclaimed and the 
 70.6   winner of the prize shall have no further claim to the prize.  A 
 70.7   prize won by a person who purchased the winning ticket in 
 70.8   violation of section 349A.12, subdivision 1, or won by a person 
 70.9   ineligible to be awarded a prize under subdivision 7 must be 
 70.10  treated as an unclaimed prize under this section.  The director 
 70.11  shall deposit 70 percent of all unclaimed prize money at the end 
 70.12  of each fiscal year in the state treasury for credit to the 
 70.13  general fund. 
 70.14     Sec. 103.  Minnesota Statutes 1994, section 349A.08, 
 70.15  subdivision 7, is amended to read: 
 70.16     Subd. 7.  [PAYMENTS PROHIBITED.] (a) No prize may be paid 
 70.17  to a member of the board, the director or an employee of the 
 70.18  lottery, or a member of their families residing in the same 
 70.19  household of the member, director, or employee.  No prize may be 
 70.20  paid to an officer or employee of a vendor which at the time the 
 70.21  game or drawing was being conducted was involved with providing 
 70.22  goods or services to the lottery under a lottery procurement 
 70.23  contract. 
 70.24     (b) No prize may be paid for a stolen, altered, or 
 70.25  fraudulent ticket. 
 70.26     Sec. 104.  Minnesota Statutes 1994, section 349A.10, is 
 70.27  amended by adding a subdivision to read: 
 70.28     Subd. 7.  [TRANSFER OF CASH BALANCES.] (a) At the end of 
 70.29  each business day the director shall transfer to the 
 70.30  commissioner of finance from the lottery prize fund all amounts 
 70.31  that the director determines are not required for immediate use 
 70.32  by the lottery prize fund.  The commissioner shall deposit all 
 70.33  amounts so received in the general fund to be credited to the 
 70.34  budget reserve and cash flow account. 
 70.35     (b) The director shall notify the commissioner of finance 
 70.36  whenever the director determines that money transferred under 
 71.1   paragraph (a) is required for the immediate use of the lottery 
 71.2   prize fund.  Upon receiving such a notification the commissioner 
 71.3   shall transfer the amount identified in the notification.  
 71.4   Amounts necessary to make transfers under this paragraph are 
 71.5   appropriated from the general fund to the commissioner. 
 71.6      Sec. 105.  Minnesota Statutes 1994, section 349A.11, is 
 71.7   amended to read: 
 71.8      349A.11 [CONFLICT OF INTEREST.] 
 71.9      (a) The director, a board member, an employee of the 
 71.10  lottery, a member of the immediate family of the director, board 
 71.11  member, or employee residing in the same household may not: 
 71.12     (1) purchase a lottery ticket; 
 71.13     (2) have any personal pecuniary interest in any vendor 
 71.14  holding a lottery procurement contract, or in any lottery 
 71.15  retailer; or 
 71.16     (3) receive any gift, gratuity, or other thing of value, 
 71.17  excluding food or beverage, from any lottery vendor or lottery 
 71.18  retailer, or person applying to be a retailer or vendor, in 
 71.19  excess of $100 in any calendar year.  
 71.20     (b) A violation of paragraph (a), clause (1), is a 
 71.21  misdemeanor.  A violation of paragraph (a), clause (2), is a 
 71.22  gross misdemeanor.  A violation of paragraph (a), clause (3), is 
 71.23  a misdemeanor unless the gift, gratuity, or other item of value 
 71.24  received has a value in excess of $500, in which case a 
 71.25  violation is a gross misdemeanor.  
 71.26     (c) The director or an unclassified employee of the lottery 
 71.27  may not, within one year of terminating employment with the 
 71.28  lottery, accept employment with, act as an agent or attorney 
 71.29  for, or otherwise represent any person, corporation, or entity 
 71.30  that had any lottery procurement contract or bid for a lottery 
 71.31  procurement contract with the lottery within a period of two 
 71.32  years prior to the termination of their employment.  A violation 
 71.33  of this paragraph is a misdemeanor.  
 71.34     Sec. 106.  Minnesota Statutes 1994, section 349A.12, 
 71.35  subdivision 4, is amended to read: 
 71.36     Subd. 4.  [LOTTERY RETAILERS AND VENDORS.] A person who is 
 72.1   a lottery retailer, or is applying to be a lottery retailer, a 
 72.2   person applying for a contract with the director, or a person 
 72.3   under contract with the director to supply goods or services to 
 72.4   lottery may not pay, give, or make any economic opportunity, 
 72.5   gift, loan, gratuity, special discount, favor, hospitality, or 
 72.6   service, excluding food or beverage, having an aggregate value 
 72.7   of over $100 in any calendar year to the director, board member, 
 72.8   employee of the lottery, or to a member of the immediate family 
 72.9   residing in the same household as that person.  
 72.10     Sec. 107.  [DIRECTORS.] 
 72.11     The directors of the Minnesota racing commission and 
 72.12  gambling control board on the effective date of this section 
 72.13  continue in the positions of director of pari-mutuel racing and 
 72.14  lawful gambling, respectively, in the unclassified service. 
 72.15     Sec. 108.  Minnesota Statutes 1994, section 352.15, 
 72.16  subdivision 3, is amended to read: 
 72.17     Subd. 3.  [DEDUCTING HEALTH INSURANCE PREMIUMS.] The board 
 72.18  may direct, at its discretion, the deduction of a retiree's 
 72.19  health or dental insurance premiums and transfer of the amounts 
 72.20  to a health or dental insurance carrier covering state 
 72.21  employees.  The insurance carrier must certify that the retired 
 72.22  employee has signed an authorization for the deduction and 
 72.23  provide a computer readable roster of covered retirees and 
 72.24  amounts.  The health or dental insurance carrier must refund 
 72.25  deductions withheld from a retiree's check in error directly to 
 72.26  the retiree.  The board shall require the insurance carrier to 
 72.27  reimburse the fund for the administrative expense of withholding 
 72.28  the premium amounts.  The insurance carrier shall assume 
 72.29  liability for any failure of the system to properly withhold the 
 72.30  premium amounts. 
 72.31     Sec. 109. Minnesota Statutes 1994, section 462.358, 
 72.32  subdivision 2b, is amended to read: 
 72.33     Subd. 2b.  [DEDICATION.] The regulations may require that a 
 72.34  reasonable portion of any proposed subdivision be dedicated to 
 72.35  the public or preserved for public use as streets, roads, 
 72.36  sewers, electric, gas, and water facilities, storm water 
 73.1   drainage and holding areas or ponds and similar utilities and 
 73.2   improvements.  
 73.3      In addition, the regulations may require that a reasonable 
 73.4   portion of any proposed subdivision be dedicated to the public 
 73.5   or preserved for conservation purposes or for public use as 
 73.6   parks, recreational facilities as defined and outlined in 
 73.7   section 471.191, playgrounds, trails, wetlands, or open space; 
 73.8   provided that (a) the municipality may choose to accept an 
 73.9   equivalent amount in cash from the applicant for part or all of 
 73.10  the portion required to be dedicated to such public uses or 
 73.11  purposes based on the fair market value of the land no later 
 73.12  than at the time of final approval, (b) any cash payments 
 73.13  received shall be placed in a special fund by the municipality 
 73.14  used only for the purposes for which the money was obtained, (c) 
 73.15  in establishing the reasonable portion to be dedicated, the 
 73.16  regulations may consider the open space, park, recreational, or 
 73.17  common areas and facilities which the applicant proposes to 
 73.18  reserve for the subdivision, and (d) the municipality reasonably 
 73.19  determines that it will need to acquire that portion of land for 
 73.20  the purposes stated in this paragraph as a result of approval of 
 73.21  the subdivision. 
 73.22     Sec. 110.  Minnesota Statutes 1994, section 465.795, 
 73.23  subdivision 7, is amended to read: 
 73.24     Subd. 7.  [SCOPE.] As used in sections 465.795 to 465.799 
 73.25  and sections 465.801 to 465.87 465.88, the terms defined in this 
 73.26  section have the meanings given them. 
 73.27     Sec. 111.  Minnesota Statutes 1994, section 465.796, 
 73.28  subdivision 2, is amended to read: 
 73.29     Subd. 2.  [DUTIES OF BOARD.] The board shall: 
 73.30     (1) accept applications from local government units for 
 73.31  waivers of administrative rules and temporary, limited 
 73.32  exemptions from enforcement of procedural requirements in state 
 73.33  law as provided in section 465.797, and determine whether to 
 73.34  approve, modify, or reject the application; 
 73.35     (2) accept applications for grants to local government 
 73.36  units and related organizations proposing to design models or 
 74.1   plans for innovative service delivery and management as provided 
 74.2   in section 465.798 and determine whether to approve, modify, or 
 74.3   reject the application; 
 74.4      (3) accept applications from local government units for 
 74.5   financial assistance to enable them to plan for cooperative 
 74.6   efforts as provided in section 465.799, and determine whether to 
 74.7   approve, modify, or reject the application; 
 74.8      (4) accept applications from eligible local government 
 74.9   units for service-sharing grants as provided in section 465.801, 
 74.10  and determine whether to approve, modify, or reject the 
 74.11  application; 
 74.12     (5) accept applications from counties, cities, and towns 
 74.13  proposing to combine under sections 465.81 to 465.87, and 
 74.14  determine whether to approve or disapprove the application; and 
 74.15     (6) make recommendations to the legislature for the 
 74.16  authorization of pilot projects for the implementation of 
 74.17  innovative service delivery activities that require statutory 
 74.18  authorization; 
 74.19     (7) make recommendations to the legislature regarding the 
 74.20  elimination of state mandates that inhibit local government 
 74.21  efficiency, innovation, and cooperation. by prescribing specific 
 74.22  processes for achieving a desired outcome; 
 74.23     (8) investigate and review the role of unfunded state 
 74.24  mandates in intergovernmental relations and assess their impact 
 74.25  on state and local government objectives and responsibilities; 
 74.26     (9) make recommendations to the governor and the 
 74.27  legislature regarding: 
 74.28     (i) allowing flexibility for local units of government in 
 74.29  complying with specific unfunded state mandates for which terms 
 74.30  of compliance are unnecessarily rigid or complex; 
 74.31     (ii) reconciling any two or more unfunded state mandates 
 74.32  which impose contradictory or inconsistent requirements; 
 74.33     (iii) terminating unfunded state mandates which are 
 74.34  duplicative, obsolete, or lacking in practical utility; 
 74.35     (iv) suspending, on a temporary basis, unfunded state 
 74.36  mandates which are not vital to public health and safety and 
 75.1   which compound the fiscal difficulties of local units of 
 75.2   government, including recommendations for triggering such 
 75.3   suspension; 
 75.4      (v) consolidating or simplifying unfunded state mandate, or 
 75.5   the planning or reporting requirements of such mandates, in 
 75.6   order to reduce duplication and facilitate compliance by local 
 75.7   units of government with those mandates; and 
 75.8      (vi) establishing common state definitions or standards to 
 75.9   be used by local units of government in complying with unfunded 
 75.10  state mandates that use different definitions or standards for 
 75.11  the same terms or principles; and 
 75.12     (10) identification of relevant unfunded state mandates. 
 75.13     Each recommendation under clause (9) shall, to the extent 
 75.14  practicable, identify the specific unfunded state mandates to 
 75.15  which the recommendation applies.  The heads of state agencies 
 75.16  responsible for the promulgation or enforcement of the unfunded 
 75.17  mandates addressed in clauses (7) to (10) shall assign staff to 
 75.18  assist the board in carrying out the board's duties under this 
 75.19  section. 
 75.20  The board may purchase services from the metropolitan council in 
 75.21  reviewing requests for waivers and grant applications. 
 75.22     Sec. 112.  [REPORT.] 
 75.23     The board shall prepare and distribute a report to the 
 75.24  governor and legislature by November 15, 1995, containing 
 75.25  recommended legislation to accomplish the goals of Minnesota 
 75.26  Statutes, section 465.796, subdivision 2, clauses (8) to (10). 
 75.27     Sec. 113.  Minnesota Statutes 1994, section 465.797, 
 75.28  subdivision 1, is amended to read: 
 75.29     Subdivision 1.  [GENERALLY.] (a) Except as provided in 
 75.30  paragraph (b), a local government unit may request the board of 
 75.31  government innovation and cooperation to grant a waiver from one 
 75.32  or more administrative rules or a temporary, limited exemption 
 75.33  from enforcement of state procedural laws governing delivery of 
 75.34  services by the local government unit.  Two or more local 
 75.35  government units may submit a joint application for a waiver or 
 75.36  exemption under this section if they propose to cooperate in 
 76.1   providing a service or program that is subject to the rule or 
 76.2   law.  Before submitting an application to the board, the 
 76.3   governing body of the local government unit must approve, in 
 76.4   concept, the proposed waiver or exemption at a meeting required 
 76.5   to be public under section 471.705.  A local government unit or 
 76.6   two or more units acting jointly may apply for a waiver or 
 76.7   exemption on behalf of a nonprofit organization providing 
 76.8   services to clients whose costs are paid by the unit or units.  
 76.9   A waiver or exemption granted to a nonprofit organization under 
 76.10  this section applies to services provided to all the 
 76.11  organization's clients. 
 76.12     (b) A school district that is granted a variance from rules 
 76.13  of the state board of education under section 121.11, 
 76.14  subdivision 12, need not apply to the board for a waiver of 
 76.15  those rules under this section.  A school district may not seek 
 76.16  a waiver of rules under this section if the state board of 
 76.17  education has authority to grant a variance to the rules under 
 76.18  section 121.11, subdivision 12.  This paragraph does not 
 76.19  preclude a school district from being included in a cooperative 
 76.20  effort with another local government unit under this section.  
 76.21     Sec. 114.  Minnesota Statutes 1994, section 465.797, 
 76.22  subdivision 2, is amended to read: 
 76.23     Subd. 2.  [APPLICATION.] A local government unit requesting 
 76.24  a waiver of a rule or exemption from enforcement of a law under 
 76.25  this section shall present a written application to the board.  
 76.26  The application must include: 
 76.27     (1) identification of the service or program at issue; 
 76.28     (2) identification of the administrative rule or the law 
 76.29  imposing a procedural requirement with respect to which the 
 76.30  waiver or exemption is sought; and 
 76.31     (3) a description of the improved service outcome sought, 
 76.32  including an explanation of the effect of the waiver or 
 76.33  exemption in accomplishing that outcome. 
 76.34     A copy of the application must be provided by the 
 76.35  requesting local government unit to the exclusive representative 
 76.36  certified under section 179A.12 to represent employees who 
 77.1   provide the service or program affected by the requested waiver 
 77.2   or exemption. 
 77.3      Sec. 115.  Minnesota Statutes 1994, section 465.797, 
 77.4   subdivision 3, is amended to read: 
 77.5      Subd. 3.  [REVIEW PROCESS.] (a) Upon receipt of an 
 77.6   application from a local government unit, the board shall review 
 77.7   the application.  The board shall dismiss an application if it 
 77.8   finds that the application proposes a waiver of rules or 
 77.9   exemption from enforcement of laws that would result in due 
 77.10  process violations, violations of federal law or the state or 
 77.11  federal constitution, or the loss of services to people who are 
 77.12  entitled to them.  
 77.13     (b) The board shall determine whether a law from which an 
 77.14  exemption for enforcement is sought is a procedural law, 
 77.15  specifying how a local government unit is to achieve an outcome, 
 77.16  rather than a substantive law prescribing the outcome or 
 77.17  otherwise establishing policy.  In making its determination, the 
 77.18  board shall consider whether the law specifies such requirements 
 77.19  as: 
 77.20     (1) who must deliver a service; 
 77.21     (2) where the service must be delivered; 
 77.22     (3) to whom and in what form reports regarding the service 
 77.23  must be made; and 
 77.24     (4) how long or how often the service must be made 
 77.25  available to a given recipient. 
 77.26     (c) If the commissioner of finance, the commissioner of 
 77.27  administration, or the state auditor has jurisdiction over a 
 77.28  rule or law affected by an application, the chief administrative 
 77.29  law judge, as soon as practicable after receipt of the 
 77.30  application, shall designate a third administrative law judge to 
 77.31  serve as a member of the board in place of that official while 
 77.32  the board is deciding whether to grant the waiver or exemption. 
 77.33     (d) (c) If the application is submitted by a local 
 77.34  government unit in the metropolitan area or the unit requests a 
 77.35  waiver of a rule or temporary, limited exemptions from 
 77.36  enforcement of a procedural law over which the metropolitan 
 78.1   council or a metropolitan agency has jurisdiction, the board 
 78.2   shall also transmit a copy of the application to the council for 
 78.3   review and comment.  The council shall report its comments to 
 78.4   the board within 60 days of the date the application was 
 78.5   transmitted to the council.  The council may point out any 
 78.6   resources or technical assistance it may be able to provide a 
 78.7   local government submitting a request under this section.  
 78.8      (e) (d) Within 15 days after receipt of the application, 
 78.9   the board shall transmit a copy of it to the commissioner of 
 78.10  each agency having jurisdiction over a rule or law from which a 
 78.11  waiver or exemption is sought.  The agency may mail a notice 
 78.12  that it has received an application for a waiver or exemption to 
 78.13  all persons who have registered with the agency under section 
 78.14  14.14, subdivision 1a, identifying the rule or law from which a 
 78.15  waiver or exemption is requested.  If no agency has jurisdiction 
 78.16  over the rule or law, the board shall transmit a copy of the 
 78.17  application to the attorney general.  The agency shall inform 
 78.18  the board of its agreement with or objection to and grounds for 
 78.19  objection to the waiver or exemption request within 60 days of 
 78.20  the date when the application was transmitted to it.  An 
 78.21  agency's failure to do so is considered agreement to the waiver 
 78.22  or exemption.  The board shall decide whether to grant a waiver 
 78.23  or exemption at its next regularly scheduled meeting following 
 78.24  its receipt of an agency's response or the end of the 60-day 
 78.25  response period.  If consideration of an application is not 
 78.26  concluded at that meeting, the matter may be carried over to the 
 78.27  next meeting of the board.  Interested persons may submit 
 78.28  written comments to the board on the waiver or exemption request 
 78.29  up to the time of its vote on the application.  
 78.30     (f) If the exclusive representative of the affected 
 78.31  employees of the requesting local government unit objects to the 
 78.32  waiver or exemption request it may inform the board of the 
 78.33  objection to and the grounds for the objection to the waiver or 
 78.34  exemption request within 60 days of the receipt of the 
 78.35  application. 
 78.36     Sec. 116.  Minnesota Statutes 1994, section 465.797, 
 79.1   subdivision 4, is amended to read: 
 79.2      Subd. 4.  [HEARING.] If the agency or the exclusive 
 79.3   representative does not agree with the waiver or exemption 
 79.4   request, the board shall set a date for a hearing on the 
 79.5   application.  The hearing must be conducted informally at a 
 79.6   meeting of the board.  Persons representing the local government 
 79.7   unit shall present their case for the waiver or exemption, and 
 79.8   persons representing the agency shall explain the agency's 
 79.9   objection to it.  Members of the board may request additional 
 79.10  information from either party.  The board may also request, 
 79.11  either before or at the hearing, information or comments from 
 79.12  representatives of business, labor, local governments, state 
 79.13  agencies, consultants, and members of the public.  If necessary, 
 79.14  the hearing may be continued at a subsequent board meeting.  A 
 79.15  waiver or exemption must be granted by a vote of a majority of 
 79.16  the board members.  The board may modify the terms of the waiver 
 79.17  or exemption request in arriving at the agreement required under 
 79.18  subdivision 5. 
 79.19     Sec. 117.  Minnesota Statutes 1994, section 465.797, 
 79.20  subdivision 5, is amended to read: 
 79.21     Subd. 5.  [CONDITIONS OF AGREEMENTS.] (a) If the board 
 79.22  grants a request for a waiver or exemption, the board and the 
 79.23  local government unit shall enter into an agreement providing 
 79.24  for the delivery of the service or program that is the subject 
 79.25  of the application.  The agreement must specify desired outcomes 
 79.26  and the means of measurement by which the board will determine 
 79.27  whether the outcomes specified in the agreement have been met.  
 79.28  The agreement must specify the duration of the waiver or 
 79.29  exemption, which may be for no less than two years and no more 
 79.30  than four years, subject to renewal if both parties agree.  
 79.31     (b) If the board grants a waiver from enforcement of a 
 79.32  rule, it must report this waiver to the legislature including 
 79.33  the chairs of the governmental operations and appropriate policy 
 79.34  committees in the house and senate, and governor within 30 days. 
 79.35     (c) The board may reconsider or renegotiate the agreement 
 79.36  if the rule or law affected by the waiver or exemption is 
 80.1   amended or repealed during the term of the original agreement.  
 80.2   A waiver of a rule under this section has the effect of a 
 80.3   variance granted by an agency under section 14.05, subdivision 
 80.4   4.  A local unit of government that is granted an exemption from 
 80.5   enforcement of a procedural requirement in state law under this 
 80.6   section is exempt from that law for the duration of the 
 80.7   exemption.  The board may require periodic reports from the 
 80.8   local government unit, or conduct investigations of the service 
 80.9   or program. 
 80.10     Sec. 118.  Minnesota Statutes 1994, section 465.797, 
 80.11  subdivision 6, is amended to read: 
 80.12     Subd. 6.  [ENFORCEMENT.] If the board finds that the local 
 80.13  government unit is failing to comply with the terms of the 
 80.14  agreement under subdivision 5, it may rescind the agreement.  
 80.15  Upon the rescission, the local unit of government becomes 
 80.16  subject to the rules and laws covered by the agreement. 
 80.17     Sec. 119.  Minnesota Statutes 1994, section 465.798, is 
 80.18  amended to read: 
 80.19     465.798 [SERVICE BUDGET MANAGEMENT MODEL GRANTS.] 
 80.20     One or more local units of governments, an association of 
 80.21  local governments, the metropolitan council, a local unit of 
 80.22  government acting in conjunction with an organization or a state 
 80.23  agency, or an organization established by two or more local 
 80.24  units of government under a joint powers agreement may apply to 
 80.25  the board of government innovation and management for a grant to 
 80.26  be used to develop models for innovative service budget 
 80.27  management.  The application to the board must state what other 
 80.28  sources of funding have been considered by the local units of 
 80.29  government to implement the project and explain why it is not 
 80.30  possible to complete the project without assistance from the 
 80.31  board.  The board may not award a grant if it determines that 
 80.32  the local units of government could complete the project without 
 80.33  board assistance.  A copy of the application must be provided by 
 80.34  the units to the exclusive representatives certified under 
 80.35  section 179A.12 to represent employees who provide the service 
 80.36  or program affected by the application.  
 81.1      Proposed models may provide options to local governments, 
 81.2   neighborhood or community organizations, or individuals for 
 81.3   managing budgets for service delivery.  A copy of the work 
 81.4   product for which the grant was provided must be furnished to 
 81.5   the board upon completion, and the board may disseminate it to 
 81.6   other local units of government or interested groups.  If the 
 81.7   board finds that the model was not completed or implemented 
 81.8   according to the terms of the grant agreement, it may require 
 81.9   the grantee to repay all or a portion of the grant.  The board 
 81.10  shall award grants on the basis of each qualified applicant's 
 81.11  score under the scoring system in section 465.802.  The amount 
 81.12  of a grant under this section may not exceed $50,000. 
 81.13     Sec. 120.  Minnesota Statutes 1994, section 465.799, is 
 81.14  amended to read: 
 81.15     465.799 [COOPERATION PLANNING GRANTS.] 
 81.16     Two or more local government units; an association of local 
 81.17  governments; a local unit of government acting in conjunction 
 81.18  with the metropolitan council, an organization, or a state 
 81.19  agency; or an organization formed by two or more local units of 
 81.20  government under a joint powers agreement may apply to the board 
 81.21  of government innovation and cooperation for a grant to be used 
 81.22  to develop a plan for intergovernmental cooperation in providing 
 81.23  services.  The application to the board must state what other 
 81.24  sources of funding have been considered by the local units of 
 81.25  government to implement the project and explain why it is not 
 81.26  possible to complete the project without assistance from the 
 81.27  board.  The board may not award a grant if it determines that 
 81.28  the local units of government could complete the project without 
 81.29  board assistance.  A copy of the application must be submitted 
 81.30  by the applicants to the exclusive representatives certified 
 81.31  under section 179A.12 to represent employees who provide the 
 81.32  service or program affected by the application.  
 81.33     The plan may include model contracts or agreements to be 
 81.34  used to implement the plan.  A copy of the work product for 
 81.35  which the grant was provided must be furnished to the board upon 
 81.36  completion, and the board may disseminate it to other local 
 82.1   units of government or interested groups.  If the board finds 
 82.2   that the grantee has failed to implement the plan according to 
 82.3   the terms of the agreement, it may require the grantee to repay 
 82.4   all or a portion of the grant.  The board shall award grants on 
 82.5   the basis of each qualified applicant's score under the scoring 
 82.6   system in section 465.802.  The amount of a grant under this 
 82.7   section may not exceed $50,000. 
 82.8      Sec. 121.  Minnesota Statutes 1994, section 465.801, is 
 82.9   amended to read: 
 82.10     465.801 [SERVICE SHARING GRANTS.] 
 82.11     Two or more local units of government; an association of 
 82.12  local governments; a local unit of government acting in 
 82.13  conjunction with the metropolitan council, an organization, or a 
 82.14  state agency; or an organization established by two or more 
 82.15  local units of government under a joint powers agreement may 
 82.16  apply to the board of government innovation and cooperation for 
 82.17  a grant to be used to meet the start-up costs of providing 
 82.18  shared services or functions.  Agreements solely to make joint 
 82.19  purchases are not sufficient to qualify under this section.  The 
 82.20  application to the board must state what other sources of 
 82.21  funding have been considered by the local units of government to 
 82.22  implement the project and explain why it is not possible to 
 82.23  complete the project without assistance from the board.  The 
 82.24  board may not award a grant if it determines that the local 
 82.25  units of government could complete the project without board 
 82.26  assistance.  A copy of the application must be provided by the 
 82.27  applicants to the exclusive representatives certified under 
 82.28  section 179A.12 to represent employees who provide the service 
 82.29  or program affected by the application. 
 82.30     The proposal must include plans fully to integrate a 
 82.31  service or function provided by two or more local government 
 82.32  units.  A copy of the work product for which the grant was 
 82.33  provided must be furnished to the board upon completion, and the 
 82.34  board may disseminate it to other local units of government or 
 82.35  interested groups.  If the board finds that the grantee has 
 82.36  failed to implement the plan according to the terms of the 
 83.1   agreement, it may require the grantee to repay all or a portion 
 83.2   of the grant.  The board shall award grants on the basis of each 
 83.3   qualified applicant's score under the scoring system in section 
 83.4   465.802.  The amount of a grant under this section may not 
 83.5   exceed $100,000. 
 83.6      Sec. 122.  Minnesota Statutes 1994, section 465.81, 
 83.7   subdivision 1, is amended to read: 
 83.8      Subdivision 1.  [SCOPE.] Sections 465.81 to 465.87 
 83.9   establish procedures to be used by counties, cities, or towns 
 83.10  that adopt by resolution an agreement providing a plan to 
 83.11  provide combined services during an initial two-year cooperation 
 83.12  period that may not exceed two years and then to merge into a 
 83.13  single unit of government over the succeeding two-year period.  
 83.14     Sec. 123.  Minnesota Statutes 1994, section 465.82, 
 83.15  subdivision 2, is amended to read: 
 83.16     Subd. 2.  [CONTENTS OF PLAN.] The plan shall must state:  
 83.17     (1) the specific cooperative activities the units will 
 83.18  engage in during the first two years of the venture; 
 83.19     (2) the steps to be taken to effect the merger of the 
 83.20  governmental units, beginning in the third year of the process, 
 83.21  with completion no later than four years after the process 
 83.22  begins; 
 83.23     (3) the steps by which a single governing body will be 
 83.24  created.  Notwithstanding any other law to the contrary, all 
 83.25  current members of the governing bodies of the local government 
 83.26  units that propose to combine under sections 465.81 to 465.87 
 83.27  may serve on the initial governing body of the combined unit, 
 83.28  until a gradual reduction in membership is achieved by foregoing 
 83.29  election of new members when terms expire until the number 
 83.30  permitted by other law is reached; 
 83.31     (4) changes in services provided, facilities used, 
 83.32  administrative operations and staffing to effect the preliminary 
 83.33  cooperative activities and the final merger; 
 83.34     (5) treatment of employees of the merging governmental 
 83.35  units, specifically including provisions for reassigning 
 83.36  employees, dealing with unions, and providing financial 
 84.1   incentives to encourage early retirements; 
 84.2      (6) financial arrangements for the merger, specifically 
 84.3   including responsibility for debt service on outstanding 
 84.4   obligations of the merging entities; 
 84.5      (7) two, five, and ten-year projections prepared by the 
 84.6   department of revenue at the request of the local government 
 84.7   unit, of revenues, expenditures, and property taxes for each 
 84.8   unit if it combined and if it remained separate; 
 84.9      (8) procedures for a referendum to be held prior to the 
 84.10  year of before the proposed combination to approve combining the 
 84.11  local government units, specifically stating whether a majority 
 84.12  of those voting in each district proposed for combination or a 
 84.13  majority of those voting on the question in the entire area 
 84.14  proposed for combination would be needed to pass the referendum; 
 84.15  and 
 84.16     (9) a time schedule for implementation. 
 84.17     Notwithstanding clause (3) or any other law to the 
 84.18  contrary, all current members of the governing bodies of the 
 84.19  local governmental units that propose to combine under sections 
 84.20  465.81 to 465.87 may serve on the initial governing body of the 
 84.21  combined unit until a gradual reduction in membership is 
 84.22  achieved by foregoing election of new members when terms expire 
 84.23  until the number permitted by other law is reached. 
 84.24     Sec. 124.  Minnesota Statutes 1994, section 465.84, is 
 84.25  amended to read: 
 84.26     465.84 [REFERENDUM.] 
 84.27     During the first or second year of cooperation, and after 
 84.28  approval of the plan by the department board under section 
 84.29  465.83, a referendum on the question of combination shall must 
 84.30  be conducted.  The referendum shall must be on a date called by 
 84.31  the governing bodies of the units that propose to combine.  The 
 84.32  referendum shall must be conducted according to the Minnesota 
 84.33  election law, as defined in section 200.01.  If the referendum 
 84.34  fails, the same question or a modified question may be submitted 
 84.35  the following year.  If the referendum fails again, the same 
 84.36  question may not be submitted.  Referendums shall be conducted 
 85.1   on the same date in all local government units. 
 85.2      Sec. 125.  Minnesota Statutes 1994, section 465.85, is 
 85.3   amended to read: 
 85.4      465.85 [COUNTY AUDITOR TO PREPARE PLAT.] 
 85.5      Upon the request of two or more local government units that 
 85.6   have adopted a resolution to cooperate and combine, the county 
 85.7   auditor shall prepare a plat.  If the proposed combined local 
 85.8   government unit is located in more than one county, the request 
 85.9   shall must be submitted to the county auditor of the county that 
 85.10  has the greatest land area in the proposed district.  The plat 
 85.11  must show:  
 85.12     (1) the boundaries of each of the present units; 
 85.13     (2) the boundaries of the proposed unit; 
 85.14     (3) the boundaries of proposed election districts, if 
 85.15  requested; and 
 85.16     (4) other information deemed pertinent by the governing 
 85.17  bodies or the county auditor. 
 85.18     Sec. 126.  Minnesota Statutes 1994, section 465.87, is 
 85.19  amended to read: 
 85.20     465.87 [AIDS TO COOPERATING AND COMBINING UNITS.] 
 85.21     Subdivision 1.  [ELIGIBILITY.] A local government unit is 
 85.22  eligible to apply for aid under this section if the board has 
 85.23  approved its plan to cooperate and combine under section 465.83. 
 85.24     Subd. 1a.  [ADDITIONAL ELIGIBILITY.] A local government 
 85.25  unit is eligible to apply for aid under this section if it has 
 85.26  combined with another unit of government in accordance with any 
 85.27  process within chapter 414 that results in the elimination of at 
 85.28  least one local government unit and a copy of the municipal 
 85.29  board's order combining the two units of government is forwarded 
 85.30  to the board.  If two units of government cooperate in the 
 85.31  orderly annexation of the entire area of a third unit of 
 85.32  government which has a population of at least 8,000 people, the 
 85.33  two units of government are each eligible for the amount of aid 
 85.34  specified in subdivision 2.  
 85.35     Subd. 1b.  [APPLICATION PROCEDURES.] A local government 
 85.36  unit covered by subdivision 1 may submit an application to the 
 86.1   board along with the final plan for cooperation and combination 
 86.2   required by section 465.83.  A local government unit covered by 
 86.3   subdivision 1a may submit an application to the board after the 
 86.4   issuance of the municipal board's order combining the two units 
 86.5   of government.  The application must be on a form prescribed by 
 86.6   the board and must specify the total amount of aid requested up 
 86.7   to the maximum authorized by subdivision 2.  The application 
 86.8   must also include a detailed explanation of the need for the aid 
 86.9   and provide a budget indicating how the requested aid would be 
 86.10  used. 
 86.11     Subd. 1c.  [AID AWARD.] The board may grant or deny an 
 86.12  application for aid made by a local government under subdivision 
 86.13  1b.  The board may also grant aid to an applicant in an amount 
 86.14  that is less than the amount requested by the applicant.  The 
 86.15  board shall base its decision on the following criteria: 
 86.16     (1) whether the local government unit has adequately 
 86.17  demonstrated that the requested aid is essential to 
 86.18  accomplishing the proposed combination; 
 86.19     (2) whether the activities to be funded by the requested 
 86.20  aid are directly related to the combination; 
 86.21     (3) whether other sources of funding for the activities 
 86.22  identified in the application, including short-term cost 
 86.23  savings, are available to the applicant as a direct result of 
 86.24  the combination; and 
 86.25     (4) whether there are competing needs for the funding 
 86.26  available to the board that would provide a greater public 
 86.27  benefit than would be realized by the combination or activities 
 86.28  described in the application.  
 86.29     The board may award money to an applicant for a period not 
 86.30  to exceed four years.  Any funding awarded for a period beyond 
 86.31  the biennium in which an award is made, however, is contingent 
 86.32  on future appropriations to the board. 
 86.33     Subd. 2.  [AMOUNT OF AID.] The annual amount of aid to be 
 86.34  paid to each eligible local government unit is equal to may not 
 86.35  exceed the following per capita amounts, based on the combined 
 86.36  population of the units, not to exceed $100,000 per year for any 
 87.1   unit as estimated by the state demographer, or $100,000, 
 87.2   whichever is less. 
 87.3         Combined Population                   Aid
 87.4          after Combination                 Per Capita
 87.5                0 -  2,500                     $25 
 87.6            2,500 -  5,000                      20 
 87.7            5,000 - 20,000                      15
 87.8               over 20,000                      10
 87.9   Payments shall must be made on the dates provided for payments 
 87.10  of local government aid under section 477A.013, beginning in the 
 87.11  year during which substantial cooperative activities under the 
 87.12  plan initially occur, unless those activities begin after July 
 87.13  1, in which case the initial aid payment shall must be made in 
 87.14  the following calendar year.  Payments to a local government 
 87.15  unit that qualifies for aid pursuant to subdivision 1a must be 
 87.16  made on the dates provided for payments of local government aids 
 87.17  under section 477A.013, beginning in the calendar year during 
 87.18  which a combination in any form is expected to be ordered by the 
 87.19  Minnesota municipal board as evidenced in a resolution adopted 
 87.20  by July 1 by the affected local government units declaring their 
 87.21  intent to combine.  The resolutions must certify that the 
 87.22  combination agreement addressing all issues relative to the 
 87.23  combination is substantially complete.  The total amount of aid 
 87.24  paid may not exceed the amount appropriated to the board for 
 87.25  purposes of this section. 
 87.26     Subd. 3.  [TERMINATION OF AID; RECAPTURE.] If a second 
 87.27  referendum under section 465.84 fails, or if an initial 
 87.28  referendum fails and the governing body does not schedule a 
 87.29  second referendum within one year after the first has failed, or 
 87.30  if one or more of the local government units that proposed to 
 87.31  combine terminates its participation in the cooperation or 
 87.32  combination, no additional aid will may be paid under this 
 87.33  section.  The amount previously paid under this section to a 
 87.34  unit must be repaid if the governing body of the unit acts to 
 87.35  terminate its current level of participation in the plan.  The 
 87.36  amount previously paid to the unit must be repaid in annual 
 88.1   installments equal to the total amount paid to the unit for all 
 88.2   years under subdivision subdivisions 1c and 2, divided by the 
 88.3   number of years when payments were made. 
 88.4      Sec. 127.  [465.88] [PLANNING AID FOR CONSOLIDATION 
 88.5   STUDIES.] 
 88.6      Two local units of government with a combined population of 
 88.7   2,500 or less based on the most recent decennial census, may 
 88.8   apply to the board of aid to assist in the study of a possible 
 88.9   consolidation or combination.  To be eligible for receipt of aid 
 88.10  under this section, the two local units of government must be 
 88.11  subject to a municipal board motion to form a consolidation 
 88.12  commission pursuant to section 414.041, subdivision 2, or the 
 88.13  governing bodies of the local units of government must have 
 88.14  approved a resolution expressing their intent to develop and 
 88.15  submit a combination plan for consideration by the board.  The 
 88.16  application must be on a form prescribed by the board and must 
 88.17  provide a proposed budget detailing how the requested aid shall 
 88.18  be used.  The governing bodies of the local units of government 
 88.19  must also approve resolutions certifying that the requested aid 
 88.20  is essential for paying a portion of the costs associated with 
 88.21  the consolidation or combination study.  The board may grant up 
 88.22  to $10,000 in aid for each application received. 
 88.23     Sec. 128.  Minnesota Statutes 1994, section 473.129, is 
 88.24  amended by adding a subdivision to read: 
 88.25     Subd. 2a.  [CONTRACT CONDITIONS; REPORTING.] The 
 88.26  metropolitan council shall provide, by rule, conditions for its 
 88.27  professional and technical service contracts that are equivalent 
 88.28  to the conditions required for state contracts under section 
 88.29  16B.17. 
 88.30     Sec. 129.  Minnesota Statutes 1994, section 491A.01, 
 88.31  subdivision 8, is amended to read: 
 88.32     Subd. 8.  [JURISDICTION; MULTIPLE DEFENDANTS VENUE.] The 
 88.33  conciliation court also has jurisdiction to determine a civil 
 88.34  action commenced against two one or more defendants in the 
 88.35  county in which one or more of the defendants resides or where 
 88.36  the cause of action, or some part thereof, arose.  Counterclaims 
 89.1   may be commenced in the county where the original action was 
 89.2   commenced. 
 89.3      Sec. 130.  Minnesota Statutes 1994, section 491A.02, 
 89.4   subdivision 4, is amended to read: 
 89.5      Subd. 4.  [REPRESENTATION.] (a) A corporation, partnership, 
 89.6   limited liability company, sole proprietorship, or association 
 89.7   may be represented in conciliation court by an officer, manager, 
 89.8   or partner or an agent in the case of a condominium, 
 89.9   cooperative, or townhouse association, or may appoint a natural 
 89.10  person who is an employee or commercial property manager to 
 89.11  appear on its behalf or settle a claim in conciliation 
 89.12  court.  The state or a political subdivision of the state may be 
 89.13  represented in conciliation court by an employee of the 
 89.14  pertinent governmental unit without written authorization 
 89.15  required.  This representation does not constitute the practice 
 89.16  of law for purposes of section 481.02, subdivision 8.  In the 
 89.17  case of an officer, employee, commercial property manager, or 
 89.18  agent of a condominium, cooperative, or townhouse association, 
 89.19  an authorized power of attorney, corporate authorization 
 89.20  resolution, corporate bylaw, or other evidence of authority 
 89.21  acceptable to the court must be filed with the claim or 
 89.22  presented at the hearing.  This subdivision also applies to 
 89.23  appearances in district court by a corporation or limited 
 89.24  liability company with five or fewer shareholders or members and 
 89.25  to any condominium, cooperative, or townhouse association, if 
 89.26  the action was removed from conciliation court. 
 89.27     (b) "Commercial property manager" means a corporation, 
 89.28  partnership, or limited liability company or its employees who 
 89.29  are hired by the owner of commercial real estate to perform a 
 89.30  broad range of administrative duties at the property including 
 89.31  tenant relations matters, leasing, repairs, maintenance, the 
 89.32  negotiation and resolution of tenant disputes, and related 
 89.33  matters.  In order to appear in conciliation court, a property 
 89.34  manager's employees must possess a real estate license under 
 89.35  section 82.20 and be authorized by the owner of the property to 
 89.36  settle all disputes with tenants and others within the 
 90.1   jurisdictional limits of conciliation court. 
 90.2      (c) A commercial property manager who is appointed to 
 90.3   settle a claim in conciliation court may not charge or collect a 
 90.4   separate fee for services rendered under paragraph (a). 
 90.5      Sec. 131.  Laws 1991, chapter 235, article 5, section 3, is 
 90.6   amended to read: 
 90.7      Sec. 3.  [REPEALER.] 
 90.8      Section 1, subdivision 2, is repealed effective July 1, 
 90.9   1995 1999. 
 90.10     Sec. 132.  [METROPOLITAN COUNCIL.] 
 90.11     During the biennium ending June 30, 1997, the amount of 
 90.12  nonfederal funds spent by the metropolitan council on 
 90.13  professional or technical service contracts, as defined in 
 90.14  Minnesota Statutes, section 16B.17, may not exceed 90 percent of 
 90.15  the amount of nonfederal funds that the metropolitan council, 
 90.16  the metropolitan transit commission, the metropolitan waste 
 90.17  control commission, and the regional transit board spent on 
 90.18  these contracts during the biennium from July 1, 1993, to June 
 90.19  30, 1995.  For purposes of this section, professional or 
 90.20  technical service contracts do not include contracts for 
 90.21  construction. 
 90.22     Sec. 133.  [LEGISLATIVE AUDITOR.] 
 90.23     The legislative audit commission shall consider directing 
 90.24  the legislative auditor to conduct a follow-up study of agency 
 90.25  contracting and compliance with laws governing contracting. 
 90.26     Sec. 134.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 90.27     Appointing authorities in state government shall encourage 
 90.28  each employee to take an unpaid leave of absence for up to 160 
 90.29  hours during the period ending June 30, 1997.  Each appointing 
 90.30  authority approving such a leave shall allow the employee to 
 90.31  continue accruing vacation and sick leave, be eligible for paid 
 90.32  holidays and insurance benefits, accrue seniority, and accrue 
 90.33  service credit in state retirement plans permitting service 
 90.34  credits for authorized leaves of absence as if the employee had 
 90.35  actually been employed during the time of the leave.  If the 
 90.36  leave of absence is for one full pay period or longer, any 
 91.1   holiday pay shall be included in the first payroll warrant after 
 91.2   return from the leave of absence.  The appointing authority 
 91.3   shall attempt to grant requests for unpaid leaves of absence 
 91.4   consistent with the need to continue efficient operation of the 
 91.5   agency.  However, each appointing authority shall retain 
 91.6   discretion to grant or refuse to grant requests for leaves of 
 91.7   absence and to schedule and cancel leaves, subject to applicable 
 91.8   provisions of collective bargaining agreements and compensation 
 91.9   plans.  Any cost savings resulting from this section cancel to 
 91.10  the fund from which the money was saved.  
 91.11     Sec. 135.  [SPENDING LIMITATION ON CONTRACTS.] 
 91.12     (a) During the biennium ending June 30, 1997, the aggregate 
 91.13  amount spent by all departments or agencies defined in Minnesota 
 91.14  Statutes, section 15.91, subdivision 1, on professional or 
 91.15  technical service contracts may not exceed 90 percent of the 
 91.16  aggregate amount these departments or agencies spent on these 
 91.17  contracts during the biennium from July 1, 1993, to June 30, 
 91.18  1995.  For purposes of this section, professional or technical 
 91.19  service contracts are as defined in Minnesota Statutes, section 
 91.20  16B.17, but do not include contracts for highway construction or 
 91.21  maintenance, contracts between state agencies, contracts paid 
 91.22  for from insurance trust funds, gift and deposit funds, capital 
 91.23  projects funds, or federal funds, contracts that are entered 
 91.24  into in connection with the agency's distribution of grant 
 91.25  funds, or contracts entered into under Minnesota Statutes, 
 91.26  section 16B.35.  The governor or a designated official must 
 91.27  limit or disapprove proposed contracts as necessary to comply 
 91.28  with this section. 
 91.29     (b) During the biennium ending June 30, 1997, the amount 
 91.30  spent by (1) the house of representatives; (2) the senate; and 
 91.31  (3) the legislative coordinating commission and all groups under 
 91.32  its jurisdiction, from direct-appropriated funds on professional 
 91.33  or technical service contracts may not exceed 90 percent of the 
 91.34  amount spent on these contracts from direct-appropriated funds 
 91.35  during the biennium from July 1, 1993, to June 30, 1995.  Each 
 91.36  entity listed in clauses (1), (2), and (3) of this paragraph 
 92.1   must be treated separately for purposes of determining 
 92.2   compliance with this paragraph, except that the legislative 
 92.3   coordinating commission and all groups under its jurisdiction 
 92.4   must be treated as one unit.  For purposes of this paragraph, 
 92.5   "professional or technical service contract" has the meaning 
 92.6   defined in section 16B.17, but does not include contracts for 
 92.7   actuarial services entered into by the legislative commission on 
 92.8   pensions and retirement, or contracts with other legislative or 
 92.9   state executive agencies.  The house of representatives 
 92.10  committee on rules and legislative administration, the senate 
 92.11  committee on rules and administration, and the legislative 
 92.12  coordinating commission must each determine the amount of the 
 92.13  reduction to be made under this paragraph.  The amounts 
 92.14  appropriated to the house of representatives, the senate, and 
 92.15  the legislative coordinating commission and groups under its 
 92.16  jurisdiction by other law are reduced by the amount of the 
 92.17  reductions determined under this paragraph.  The reductions may 
 92.18  be made either in fiscal year 1996 or fiscal year 1997. 
 92.19     Sec. 136.  [STUDY ON CONSOLIDATING COUNTIES AND 
 92.20  RATIONALIZING OTHER INTERNAL BOUNDARIES.] 
 92.21     The board of government innovation and cooperation shall 
 92.22  study the feasibility of consolidating counties in the state.  
 92.23  As part of the study, the board shall consider conforming county 
 92.24  boundaries to other existing physical or organizational 
 92.25  boundaries including, among others, state judicial districts, 
 92.26  and shall consider the economic implications that may result 
 92.27  from the consolidation.  
 92.28     The study shall also include a consideration of the 
 92.29  rationalization of other internal boundaries of the state such 
 92.30  as highway maintenance and regional economic districts.  
 92.31     The board shall report on the study to the appropriate 
 92.32  committees of the legislature by January 1, 1997. 
 92.33     Sec. 137.  [CONSTITUTIONAL OFFICERS.] 
 92.34     A constitutional officer need not get the approval of the 
 92.35  commissioner of finance but must notify the committee on finance 
 92.36  of the senate and the committee on ways and means of the house 
 93.1   of representatives and the commissioner of finance before making 
 93.2   a transfer between programs in the same fund. 
 93.3      Sec. 138.  [REVISOR INSTRUCTION.] 
 93.4      (a) The revisor of statutes shall change the term "account,"
 93.5   where it refers to the petroleum tank release cleanup account, 
 93.6   to "fund" in the following sections of Minnesota Statutes:  
 93.7   115B.26, 115C.03, 115C.08, 115C.09, 115C.10, 115C.11, 115E.11, 
 93.8   and 135A.045, and in the headnote of section 115C.08. 
 93.9      (b) The revisor of statutes shall make the following 
 93.10  changes in Minnesota Statutes, and similar changes in Minnesota 
 93.11  Statutes and Rules, and conforming stylistic changes, to conform 
 93.12  to legislative intent as expressed in this act: 
 93.13     (1) "commission" to "director," and "racing commission" to 
 93.14  "director of pari-mutuel racing," in Minnesota Statutes, section 
 93.15  240.01, subdivisions 9, 10, and 16; 240.05; 240.06; 240.07; 
 93.16  240.08; 240.09; 240.10; 240.12; 240.13; 240.14; 240.15; 240.155; 
 93.17  240.16; 240.17; 240.18; 240.19; 240.20; 240.21; 240.22; 240.23; 
 93.18  240.24; 240.25; 240.27; 240.29; 299L.01, subdivision 4; 299L.02, 
 93.19  subdivision 3; and 299L.03, subdivision 3; 
 93.20     (2) "board" to "director," and "gambling control board" to 
 93.21  "director of lawful gambling," in Minnesota Statutes, section 
 93.22  297E.02, subdivision 2 and 7; 299L.03, subdivision 4; 349.12, 
 93.23  subdivisions 3, 3a, and 25; 349.15; 349.154; 349.155; 349.16; 
 93.24  349.161; 349.162; 349.163; 349.164; 349.1641; 349.165; 349.166; 
 93.25  349.167; 349.168; 349.169; 349.17; 349.172; 349.18; 349.19; 
 93.26  349.191; 349.211; 349.2123; 349.2125; 349.2127; and 349.213. 
 93.27     (c) In the next and subsequent editions of Minnesota 
 93.28  Statutes, the revisor shall substitute the term "legislative 
 93.29  coordinating commission" for the term "legislative commission on 
 93.30  employee relations" in the following sections of Minnesota 
 93.31  Statutes:  15A.081, subdivisions 1, 7, and 7b; 43A.04, 
 93.32  subdivisions 7 and 9; 43A.05, subdivisions 3, 5, and 6; 43A.06, 
 93.33  subdivision 4; 43A.17, subdivision 9; 43A.18, subdivisions 2, 3, 
 93.34  3a, 4, 4a, and 5; 43A.191, subdivision 3; 43A.31, subdivision 2; 
 93.35  179A.18; and 252.50, subdivision 11. 
 93.36     Sec. 139.  [REPEALER.] 
 94.1      (a) Minnesota Statutes 1994, section 115C.02, subdivision 
 94.2   1a, is repealed. 
 94.3      (b) Minnesota Statutes 1994, section 240.01, subdivision 4; 
 94.4   240.02; 240.04, subdivision 1 and 1a; 349.12, subdivision 6; 
 94.5   349.151; 349.152, subdivisions 1 and 2; 349A.01, subdivision 2; 
 94.6   and 349A.02, subdivision 8, are repealed. 
 94.7      (c) Minnesota Statutes 1994, sections 1.22; 3.841; 3.842; 
 94.8   3.843; 3.844; 3.845; 3.846; 3.855, subdivision 1; 3.873; 3.885; 
 94.9   3.887; and 161.1419, are repealed. 
 94.10     Sec. 140.  [EFFECTIVE DATES.] 
 94.11     Subdivision 1.  [DEBT COLLECTION.] Sections 43, 65, 66, 67, 
 94.12  68, 73, and 130 are effective the day following final 
 94.13  enactment.  Section 69 is effective for debts previously 
 94.14  referred or referred on or after the day following final 
 94.15  enactment.  
 94.16     Subd. 2.  [REVISOR.] Section 41 is effective July 1, 1997. 
 94.17     Subd. 3.  [1995 APPROPRIATIONS.] Sections 35 and 36 are 
 94.18  effective the day following final enactment. 
 94.19     Subd. 4.  [AMATEUR SPORTS COMMISSION.] Sections 90, 91, and 
 94.20  109 are effective the day following final enactment. 
 94.21                             ARTICLE 2
 94.22                                 A
 94.23                           BUILDING CODE 
 94.24     Section 1.  Minnesota Statutes 1994, section 16B.59, is 
 94.25  amended to read: 
 94.26     16B.59 [STATE BUILDING CODE; POLICY AND PURPOSE.] 
 94.27     The state building code governs the construction, 
 94.28  reconstruction, alteration, and repair of state-owned buildings 
 94.29  and other structures to which the code is applicable.  The 
 94.30  commissioner shall administer and amend a state code of building 
 94.31  construction which will provide basic and uniform performance 
 94.32  standards, establish reasonable safeguards for health, safety, 
 94.33  welfare, comfort, and security of the residents of this state 
 94.34  and provide for the use of modern methods, devices, materials, 
 94.35  and techniques which will in part tend to lower construction 
 94.36  costs.  The construction of buildings should be permitted at the 
 95.1   least possible cost consistent with recognized standards of 
 95.2   health and safety.  
 95.3      Sec. 2.  Minnesota Statutes 1994, section 16B.60, 
 95.4   subdivision 1, is amended to read: 
 95.5      Subdivision 1.  [SCOPE.] For the purposes of sections 
 95.6   16B.59 to 16B.73 16B.75, the terms defined in this section have 
 95.7   the meanings given them.  
 95.8      Sec. 3.  Minnesota Statutes 1994, section 16B.60, 
 95.9   subdivision 4, is amended to read: 
 95.10     Subd. 4.  [CODE.] "Code" means the state building code 
 95.11  adopted by the commissioner in accordance with sections 16B.59 
 95.12  to 16B.73 16B.75. 
 95.13     Sec. 4.  Minnesota Statutes 1994, section 16B.61, 
 95.14  subdivision 1, is amended to read: 
 95.15     Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
 95.16  16B.59 to 16B.73 16B.75, the commissioner shall by rule 
 95.17  establish a code of standards for the construction, 
 95.18  reconstruction, alteration, and repair of state-owned buildings, 
 95.19  governing matters of structural materials, design and 
 95.20  construction, fire protection, health, sanitation, and safety.  
 95.21  The code must conform insofar as practicable to model building 
 95.22  codes generally accepted and in use throughout the United 
 95.23  States.  In the preparation of the code, consideration must be 
 95.24  given to the existing statewide specialty codes presently in use 
 95.25  in the state.  Model codes with necessary modifications and 
 95.26  statewide specialty codes may be adopted by reference.  The code 
 95.27  must be based on the application of scientific principles, 
 95.28  approved tests, and professional judgment.  To the extent 
 95.29  possible, the code must be adopted in terms of desired results 
 95.30  instead of the means of achieving those results, avoiding 
 95.31  wherever possible the incorporation of specifications of 
 95.32  particular methods or materials.  To that end the code must 
 95.33  encourage the use of new methods and new materials.  Except as 
 95.34  otherwise provided in sections 16B.59 to 16B.73 16B.75, the 
 95.35  commissioner shall administer and enforce the provisions of 
 95.36  those sections.  
 96.1      Sec. 5.  Minnesota Statutes 1994, section 16B.61, 
 96.2   subdivision 1a, is amended to read: 
 96.3      Subd. 1a.  [ADMINISTRATION BY COMMISSIONER.] The 
 96.4   commissioner shall administer and enforce the state building 
 96.5   code as a municipality with respect to public buildings and 
 96.6   state licensed facilities in the state.  The commissioner shall 
 96.7   establish appropriate permit, plan review, and inspection fees 
 96.8   for public buildings and state licensed facilities.  Fees and 
 96.9   surcharges for public buildings and state licensed facilities 
 96.10  must be remitted to the commissioner, who shall deposit them in 
 96.11  the state treasury for credit to the special revenue fund. 
 96.12     Municipalities other than the state having a contractual 
 96.13  agreement with the commissioner for code administration and 
 96.14  enforcement service for public buildings and state licensed 
 96.15  facilities shall charge their customary fees, including 
 96.16  surcharge, to be paid directly to the contractual jurisdiction 
 96.17  by the applicant seeking authorization to construct a public 
 96.18  building or a state licensed facility.  The commissioner shall 
 96.19  contract with a municipality other than the state for plan 
 96.20  review, code administration, and code enforcement service for 
 96.21  public buildings and state licensed facilities in the 
 96.22  contractual jurisdiction if the building officials of the 
 96.23  municipality meet the requirements of section 16B.65 and wish to 
 96.24  provide those services and if the commissioner determines that 
 96.25  the municipality has enough adequately trained and qualified 
 96.26  building inspectors to provide those services for the 
 96.27  construction project. 
 96.28     The commissioner shall administer and enforce the 
 96.29  provisions of the code relating to elevators statewide, except 
 96.30  as provided for under section 183.357, subdivision 3. 
 96.31     Sec. 6.  Minnesota Statutes 1994, section 16B.61, 
 96.32  subdivision 2, is amended to read: 
 96.33     Subd. 2.  [ENFORCEMENT BY CERTAIN BODIES.] Under the 
 96.34  direction and supervision of the commissioner, the provisions of 
 96.35  the code relating to electrical installations shall be enforced 
 96.36  by the state board of electricity, pursuant to the Minnesota 
 97.1   electrical act, the provisions relating to plumbing shall be 
 97.2   enforced by the commissioner of health, the provisions relating 
 97.3   to fire protection the Minnesota uniform fire code shall be 
 97.4   enforced by the state fire marshal, the provisions relating to 
 97.5   high pressure steam piping and appurtenances and elevators shall 
 97.6   be enforced by the department of labor and industry, and the 
 97.7   code as applied to public school buildings shall be enforced by 
 97.8   the state board of education. Fees for inspections conducted by 
 97.9   the state board of electricity shall be paid in accordance with 
 97.10  the rules of the state board of electricity.  
 97.11     Sec. 7.  Minnesota Statutes 1994, section 16B.61, 
 97.12  subdivision 5, is amended to read: 
 97.13     Subd. 5.  [ACCESSIBILITY.] (a)  [PUBLIC BUILDINGS.] The 
 97.14  code must provide for making public buildings constructed or 
 97.15  remodeled after July 1, 1963, accessible to and usable by 
 97.16  physically handicapped persons, although this does not require 
 97.17  the remodeling of public buildings solely to provide 
 97.18  accessibility and usability to the physically handicapped when 
 97.19  remodeling would not otherwise be undertaken.  
 97.20     (b)  [LEASED SPACE.] No agency of the state may lease space 
 97.21  for agency operations in a non-state-owned building unless the 
 97.22  building satisfies the requirements of the state building code 
 97.23  for accessibility by the physically handicapped, or is eligible 
 97.24  to display the state symbol of accessibility.  This limitation 
 97.25  applies to leases of 30 days or more for space of at least 1,000 
 97.26  square feet.  
 97.27     (c)  [MEETINGS OR CONFERENCES.] Meetings or conferences for 
 97.28  the public or for state employees which are sponsored in whole 
 97.29  or in part by a state agency must be held in buildings that meet 
 97.30  the state building code requirements relating to accessibility 
 97.31  for physically handicapped persons.  This subdivision does not 
 97.32  apply to any classes, seminars, or training programs offered by 
 97.33  a state university, the University of Minnesota, or a state 
 97.34  community college.  Meetings or conferences intended for 
 97.35  specific individuals none of whom need the accessibility 
 97.36  features for handicapped persons specified in the state building 
 98.1   code need not comply with this subdivision unless a handicapped 
 98.2   person gives reasonable advance notice of an intent to attend 
 98.3   the meeting or conference.  When sign language interpreters will 
 98.4   be provided, meetings or conference sites must be chosen which 
 98.5   allow hearing impaired participants to see their signing clearly.
 98.6      (d)  [EXEMPTIONS.] The commissioner may grant an exemption 
 98.7   from the requirements of paragraphs (b) and (c) in advance if an 
 98.8   agency has demonstrated that reasonable efforts were made to 
 98.9   secure facilities which complied with those requirements and if 
 98.10  the selected facilities are the best available for access for 
 98.11  handicapped persons.  Exemptions shall be granted using criteria 
 98.12  developed by the commissioner in consultation with the council 
 98.13  on disability.  
 98.14     (e)  [SYMBOL INDICATING ACCESS.] The wheelchair symbol 
 98.15  adopted by Rehabilitation International's Eleventh World 
 98.16  Congress is the state symbol indicating buildings, facilities, 
 98.17  and grounds which are accessible to and usable by handicapped 
 98.18  persons.  In the interests of uniformity, this symbol in its 
 98.19  white on blue format is the sole symbol for display in or on all 
 98.20  public or private buildings, facilities, and grounds which 
 98.21  qualify for its use.  The secretary of state shall obtain the 
 98.22  symbol and keep it on file.  No building, facility, or grounds 
 98.23  may display the symbol unless it is in compliance with the rules 
 98.24  adopted by the commissioner under subdivision 1.  Before any 
 98.25  rules are proposed for adoption under this paragraph, the 
 98.26  commissioner shall consult with the council on disability.  
 98.27  Rules adopted under this paragraph must be enforced in the same 
 98.28  way as other accessibility rules of the state building code.  
 98.29     (f)  [MUNICIPAL ENFORCEMENT.] Municipalities which have not 
 98.30  adopted the state building code may enforce the building code 
 98.31  requirements for handicapped persons by either entering into a 
 98.32  joint powers agreement for enforcement with another municipality 
 98.33  which has adopted the state building code; or contracting for 
 98.34  enforcement with an individual certified under section 16B.65, 
 98.35  subdivision 3, to enforce the state building code.  
 98.36     (g)  [EQUIPMENT ALLOWED.] The code must allow the use of 
 99.1   vertical wheelchair lifts and inclined stairway wheelchair lifts 
 99.2   in public buildings.  An inclined stairway wheelchair lift must 
 99.3   be equipped with light or sound signaling device for use during 
 99.4   operation of the lift.  The stairway or ramp shall be marked in 
 99.5   a bright color that clearly indicates the outside edge of the 
 99.6   lift when in operation.  The code shall not require a guardrail 
 99.7   between the lift and the stairway or ramp.  Compliance with this 
 99.8   provision by itself does not mean other handicap accessibility 
 99.9   requirements have been met. 
 99.10     Sec. 8.  Minnesota Statutes 1994, section 16B.63, 
 99.11  subdivision 3, is amended to read: 
 99.12     Subd. 3.  [POWERS AND DUTIES.] The state building official 
 99.13  may, with the approval of the commissioner, employ personnel 
 99.14  necessary to carry out the inspector's function under sections 
 99.15  16B.59 to 16B.73 16B.75.  The state building official shall 
 99.16  distribute without charge one copy of the code to each 
 99.17  municipality within the state.  Additional copies shall be made 
 99.18  available to municipalities and interested parties for a fee 
 99.19  prescribed by the commissioner.  The state building official 
 99.20  shall perform other duties in administering the code assigned by 
 99.21  the commissioner.  
 99.22     Sec. 9.  Minnesota Statutes 1994, section 16B.65, 
 99.23  subdivision 1, is amended to read: 
 99.24     Subdivision 1.  [APPOINTMENTS.] The governing body of each 
 99.25  municipality shall, unless other means are already provided, 
 99.26  appoint a person building official to administer the code who 
 99.27  shall be known as a building official.  Two or more 
 99.28  municipalities may combine in the appointment of a single 
 99.29  building official for the purpose of administering the 
 99.30  provisions of the code within their communities.  In those 
 99.31  municipalities for which no building officials have been 
 99.32  appointed, the state building inspector, with the approval of 
 99.33  the commissioner, may appoint building officials to serve until 
 99.34  the municipalities have made an appointment.  If unable to make 
 99.35  an appointment, the state building inspector may use whichever 
 99.36  state employees or state agencies are necessary to perform the