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; amending Minnesota 
  1.9             Statutes 1994, sections 3.85, subdivision 12; 3.9741, 
  1.10            subdivision 2, as amended; 3C.02, by adding a 
  1.11            subdivision; 7.09, subdivision 1; 8.16, by adding a 
  1.12            subdivision; 15.061; 15.415; 15.50, subdivision 2; 
  1.13            15.91, subdivision 2; 16A.11, by adding a subdivision; 
  1.14            16A.127, subdivision 8; 16A.129, subdivision 3; 
  1.15            16A.28, subdivisions 5 and 6; 16A.40; 16A.57; 16A.72; 
  1.16            16B.06, by adding a subdivision; 16B.17; 16B.19, 
  1.17            subdivisions 2 and 10; 16B.42, subdivision 3; 16B.59; 
  1.18            16B.60, subdivisions 1 and 4; 16B.61, subdivisions 1, 
  1.19            2, and 5; 16B.63, subdivision 3; 16B.65, subdivisions 
  1.20            1, 3, 4, and 7; 16B.67; 16B.70; 16B.75; 16B.88, 
  1.21            subdivisions 1, 2, 3, and 4; 16D.02, subdivision 6, 
  1.22            and by adding a subdivision; 16D.04, subdivisions 1 
  1.23            and 3; 16D.06; 16D.08, subdivision 2; 43A.27, 
  1.24            subdivisions 2 and 3; 115C.02, by adding a 
  1.25            subdivision; 115C.08, subdivisions 1, 2, and 4; 
  1.26            116G.15; 197.05; 240.155, subdivision 1; 240.24, 
  1.27            subdivision 3; 240A.08; 240A.09; 240A.10; 349.151, 
  1.28            subdivision 4b; 349A.02, subdivision 1; 349A.03, by 
  1.29            adding a subdivision; 349A.04; 349A.05; 349A.06, 
  1.30            subdivision 2; 349A.08, subdivisions 5 and 7; 349A.10, 
  1.31            by adding a subdivision; 349A.11; 349A.12, subdivision 
  1.32            4; 352.15, subdivision 3; 366.10; 366.12; 366.16; 
  1.33            394.33, subdivision 2; 394.361, subdivision 3; 
  1.34            462.358, subdivisions 2a, 2b, and 9; 462.359, 
  1.35            subdivision 4; and 491A.02, subdivision 4; Laws 1991, 
  1.36            chapter 235, article 5, section 3; proposing coding 
  1.37            for new law in Minnesota Statutes, chapters 3; 16A; 
  1.38            16B; 16D; and 43A; repealing Minnesota Statutes 1994, 
  1.39            sections 115C.02, subdivision 1a; 349A.01, subdivision 
  1.40            2; and 349A.02, subdivision 8. 
  1.41  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.42                             ARTICLE 1 
  1.43  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.1      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.2   appropriated from the general fund, or another fund named, to 
  2.3   the agencies and for the purposes specified in this act, to be 
  2.4   available for the fiscal years indicated for each purpose.  The 
  2.5   figures "1995," "1996," and "1997," where used in this act, mean 
  2.6   that the appropriation or appropriations listed under them are 
  2.7   available for the year ending June 30, 1995, June 30, 1996, or 
  2.8   June 30, 1997, respectively.  
  2.9                           SUMMARY BY FUND 
  2.10                                                       BIENNIAL
  2.11             1995           1996          1997           TOTAL
  2.12  General  $790,000    $254,009,000   $254,050,000   $508,059,000
  2.13  Local 
  2.14  Government Trust          431,000                       431,000
  2.15  State 
  2.16  Government 
  2.17  Special Revenue        10,360,000     10,491,000     20,851,000 
  2.18  Environmental             208,000        208,000        416,000
  2.19  Landfill
  2.20  Cleanup                    75,000         75,000        150,000
  2.21  Highway User            1,682,000      1,687,000      3,369,000
  2.22  Trunk Highway              32,000         32,000         64,000 
  2.23  Workers'
  2.24  Compensation            4,171,000      4,176,000      8,347,000 
  2.25  Computer Services         626,000        626,000      1,252,000 
  2.26  TOTAL    $790,000    $271,594,000   $271,345,000   $542,939,000 
  2.27                                             APPROPRIATIONS 
  2.28                                         Available for the Year 
  2.29                                             Ending June 30 
  2.30                                            1996         1997 
  2.31  Sec. 2.  LEGISLATURE 
  2.32  Subdivision 1.  Total  
  2.33  Appropriation                         47,776,000     50,296,000
  2.34                Summary by Fund
  2.35  General              47,744,000    50,264,000
  2.36  Trunk Highway            32,000        32,000
  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                      15,422,000     16,163,000
  2.41  Subd. 3.  House of Representatives    20,833,000     22,943,000
  3.1   Subd. 4.  Legislative 
  3.2   Coordinating Commission               11,521,000     11,190,000
  3.3                 Summary by Fund
  3.4   General              11,489,000    11,158,000
  3.5   Trunk Highway            32,000        32,000
  3.6   $4,062,000 the first year and 
  3.7   $4,438,000 the second year are for the 
  3.8   office of the revisor of statutes. 
  3.9   $945,000 the first year and $945,000 
  3.10  the second year are for the legislative 
  3.11  reference library. 
  3.12  $4,400,000 the first year and 
  3.13  $4,294,000 the second year are for the 
  3.14  office of the legislative auditor. 
  3.15  $40,000 the first year of the 
  3.16  appropriation to the legislative 
  3.17  auditor is for the legislative auditor 
  3.18  to evaluate the statewide systems 
  3.19  project, if directed by the legislative 
  3.20  audit commission.  The legislative 
  3.21  audit commission shall consider 
  3.22  directing the legislative auditor to 
  3.23  evaluate the computerized systems 
  3.24  developed as part of the statewide 
  3.25  systems project and determine the 
  3.26  extent to which the systems have saved 
  3.27  or are likely to save money in the 
  3.28  administrative functions of state 
  3.29  government, and recommend ways the 
  3.30  systems could be used to save money and 
  3.31  increase the productivity of the 
  3.32  administrative functions of state 
  3.33  government.  The legislative auditor 
  3.34  should give particular but not 
  3.35  exclusive attention to the systems' 
  3.36  impacts on the administrative functions 
  3.37  of smaller organizations in state 
  3.38  government. 
  3.39  The legislative audit commission shall 
  3.40  consider directing the legislative 
  3.41  auditor to evaluate the administrative 
  3.42  functions of the small state agencies 
  3.43  and other small organizations in the 
  3.44  executive branch of state government, 
  3.45  such as boards and commissions, and 
  3.46  recommend ways those functions could be 
  3.47  provided more cost-effectively.  The 
  3.48  commission shall give special 
  3.49  consideration to centralizing the human 
  3.50  resources, management complement, and 
  3.51  accounting functions of these small 
  3.52  organizations.  A report of the 
  3.53  evaluation must be submitted to the 
  3.54  commission by October 1, 1995. 
  3.55  The legislative audit commission is 
  3.56  requested to consider directing the 
  3.57  legislative auditor to conduct a full 
  3.58  program evaluation of the department of 
  3.59  human rights in calendar year 1995. 
  3.60  $20,000 the first year and $10,000 the 
  3.61  second year are for the legislative 
  4.1   coordinating commission to contract for 
  4.2   needed services to ensure that sign 
  4.3   language interpreter services are 
  4.4   available at all times during the 
  4.5   legislative sessions. 
  4.6   Subd. 5.  Compensation Council
  4.7   The salary increases recommended by the 
  4.8   compensation council on April 1, 1995, 
  4.9   for legislators, constitutional 
  4.10  officers, and judges may not take 
  4.11  effect unless ratified or approved as 
  4.12  modified by another bill enacted by the 
  4.13  1995 legislature. 
  4.14  Sec. 3.  GOVERNOR AND 
  4.15  LIEUTENANT GOVERNOR                    3,507,000      3,504,000
  4.16  This appropriation is to fund the 
  4.17  offices of the governor and lieutenant 
  4.18  governor.  
  4.19  $19,000 the first year and $19,000 the 
  4.20  second year are for necessary expenses 
  4.21  in the normal performance of the 
  4.22  governor's and lieutenant governor's 
  4.23  duties for which no other reimbursement 
  4.24  is provided. 
  4.25  $97,000 the first year and $97,000 the 
  4.26  second year are for membership dues of 
  4.27  the National Governors Association. 
  4.28  $20,000 the first year and $20,000 the 
  4.29  second year are for the Council of 
  4.30  Great Lakes Governors. 
  4.31  The commissioner of finance shall 
  4.32  report to the chairs of the state 
  4.33  government finance division of the 
  4.34  senate and the state government finance 
  4.35  division of the house of 
  4.36  representatives any personnel costs 
  4.37  incurred by the office of the governor 
  4.38  and the lieutenant governor that were 
  4.39  supported by appropriations to other 
  4.40  agencies during the previous fiscal 
  4.41  year.  The office of the governor shall 
  4.42  inform the chairs of the divisions 
  4.43  before initiating any interagency 
  4.44  agreements. 
  4.45  Sec. 4.  STATE AUDITOR                 7,136,000      7,144,000
  4.46  Sec. 5.  STATE TREASURER               2,477,000      2,478,000
  4.47  $1,600,000 the first year and 
  4.48  $1,600,000 the second year are for the 
  4.49  treasurer to pay for banking services 
  4.50  by fees rather than by compensating 
  4.51  balances. 
  4.52  Sec. 6.  ATTORNEY GENERAL 
  4.53  Subdivision 1.  Total  
  4.54  Appropriation                         24,408,000     22,499,000
  4.55                Summary by Fund
  4.56  General              22,589,000    20,678,000
  5.1   State Government
  5.2   Special Revenue       1,628,000     1,630,000
  5.3   Environmental           116,000       116,000 
  5.4   Landfill Cleanup         75,000        75,000 
  5.5   The amounts that may be spent from this 
  5.6   appropriation for each program are 
  5.7   specified in the following subdivisions.
  5.8   Subd. 2.  Government Services 
  5.9        4,358,000      4,371,000
  5.10                Summary by Fund
  5.11  General               2,730,000     2,741,000
  5.12  State Government
  5.13  Special Revenue       1,628,000     1,630,000
  5.14  Subd. 3.  Public and 
  5.15  Human Resources
  5.16       3,316,000      3,335,000
  5.17                Summary by Fund
  5.18  General               3,241,000     3,260,000
  5.19  Landfill Cleanup         75,000        75,000
  5.20  Subd. 4.  Law Enforcement 
  5.21       4,060,000      4,079,000
  5.22                Summary by Fund
  5.23  General               3,944,000     3,963,000
  5.24  Environmental           116,000       116,000
  5.25  Subd. 5.  Legal Policy and 
  5.26  Administration 
  5.27       5,760,000      3,760,000
  5.28  Subd. 6.  Business Regulation 
  5.29       3,509,000      3,528,000
  5.30  Subd. 7.  Solicitor General  
  5.31       3,405,000      3,426,000
  5.32  Sec. 7.  ETHICAL PRACTICES BOARD         441,000        446,000
  5.33  Sec. 8.  INVESTMENT BOARD              2,092,000      2,093,000
  5.34  $40,000 each year is for local relief 
  5.35  association account management. 
  5.36  Sec. 9.  ADMINISTRATIVE HEARINGS      3,946,000      3,826,000
  5.37  This appropriation is from the workers' 
  5.38  compensation special compensation fund 
  5.39  for considering workers' compensation 
  5.40  claims. 
  5.41  $100,000 the first year and $100,000 
  6.1   the second year are for an internship 
  6.2   program in which students at Minnesota 
  6.3   law schools will serve as law clerks 
  6.4   for judges in the workers' compensation 
  6.5   division. 
  6.6   $180,000 the first year and $180,000 
  6.7   the second year are for additional 
  6.8   clerical support for workers' 
  6.9   compensation judges. 
  6.10  $125,000 the first year is for a mapper 
  6.11  board calendaring system. 
  6.12  Sec. 10.  OFFICE OF STRATEGIC 
  6.13  AND LONG-RANGE PLANNING                3,943,000      3,917,000
  6.14  $1,026,000 the first year and 
  6.15  $1,027,000 the second year are for the 
  6.16  land management information center. 
  6.17  Sec. 11.  ADMINISTRATION 
  6.18  Subdivision 1.  Total 
  6.19  Appropriation                         29,231,000     29,145,000
  6.20                Summary by Fund
  6.21  General              20,238,000    20,148,000
  6.22  State Government 
  6.23  Special Revenue       8,367,000     8,371,000
  6.24  Computer Services       626,000       626,000
  6.25  The amounts that may be spent from this 
  6.26  appropriation for each program are 
  6.27  specified in the following subdivisions.
  6.28  Subd. 2.  Operations Management 
  6.29       3,358,000      3,323,000
  6.30  The house and senate governmental 
  6.31  operations committees shall study and 
  6.32  report to the legislature by January 
  6.33  15, 1996, on the desirability of 
  6.34  leasing versus purchasing state 
  6.35  vehicles, and on maintenance costs for 
  6.36  vehicles under the current system.  If 
  6.37  the study finds that it would be 
  6.38  desirable, during the year ending June 
  6.39  30, 1997, the central motor pool shall 
  6.40  not purchase any new vehicles and shall 
  6.41  not sell any vehicles with less than 
  6.42  100,000 miles. 
  6.43  Subd. 3.  Intertechnologies Group
  6.44       7,778,000      7,768,000
  6.45                Summary by Fund
  6.46  General                 727,000       717,000
  6.47  State Government 
  6.48  Special Revenue       6,425,000     6,425,000
  6.49  Computer Services       626,000       626,000 
  6.50  The appropriation from the special 
  7.1   revenue fund is for recurring costs of 
  7.2   911 emergency telephone service.  
  7.3   $100,000 the first year and $90,000 the 
  7.4   second year are for transfer to the 
  7.5   commissioner of human services to add 
  7.6   an aging accounts payable module to the 
  7.7   Medicaid management information system. 
  7.8   Subd. 4.  Facilities Management 
  7.9       10,198,000     10,225,000
  7.10                Summary by Fund
  7.11  General               8,318,000     8,341,000
  7.12  State Government 
  7.13  Special Revenue       1,880,000     1,884,000
  7.14  $4,850,000 the first year and 
  7.15  $4,882,000 the second year are for 
  7.16  office space costs of the legislature 
  7.17  and veterans organizations, for 
  7.18  ceremonial space, and for statutorily 
  7.19  free space. 
  7.20  The appropriation from the special 
  7.21  revenue fund is from building code 
  7.22  surcharge receipts for operation of the 
  7.23  building codes and standards division.  
  7.24  In addition, building code surcharge 
  7.25  and fee receipts of more than 
  7.26  $2,900,000 the first year and 
  7.27  $2,900,000 the second year are 
  7.28  appropriated from the special revenue 
  7.29  fund to the commissioner of 
  7.30  administration for the building codes 
  7.31  and standards division. 
  7.32  $150,000 the first year and $150,000 
  7.33  the second year from the special 
  7.34  revenue fund is for transfer by the 
  7.35  commissioner of finance to the general 
  7.36  fund. 
  7.37  The commissioner shall review the 
  7.38  Uniform Code for Building Conservation, 
  7.39  and report to the legislature by 
  7.40  January 15, 1996, on legislation or 
  7.41  rules needed to implement this code in 
  7.42  a manner that is consistent with the 
  7.43  state building code. 
  7.44  $20,000 the first year is to clean, 
  7.45  refit, and rehabilitate the statue of 
  7.46  Leif Erikson on the grounds of the 
  7.47  state capitol. 
  7.48  Notwithstanding any law to the 
  7.49  contrary, if the facility is accessible 
  7.50  to disabled people, the Prairie Lakes 
  7.51  Juvenile Detention Center need not 
  7.52  install an elevator. 
  7.53  This appropriation includes money to 
  7.54  pay increased rental costs incurred by 
  7.55  the board of the arts. 
  7.56  Subd. 5.  Administrative Management 
  8.1        2,211,000     2,216,000
  8.2                 Summary by Fund
  8.3   General               2,149,000     2,154,000
  8.4   State Government 
  8.5   Special Revenue          62,000        62,000
  8.6   $2,000 the first year and $2,000 the 
  8.7   second year are for the state 
  8.8   employees' band. 
  8.9   $62,000 each year to the commissioner 
  8.10  of administration is to be used for 
  8.11  processing and oversight of grants and 
  8.12  allocations in the oil overcharge 
  8.13  program.  This appropriation is from 
  8.14  oil overcharge money, as defined in 
  8.15  Minnesota Statutes, section 4.071, in 
  8.16  the special revenue fund. 
  8.17  The targeted group purchasing study 
  8.18  required by Minnesota Statutes, section 
  8.19  16B.19, subdivision 2b, need not be 
  8.20  completed during the biennium ending 
  8.21  June 30, 1997. 
  8.22  Subd. 6.  Information Policy Office
  8.23       1,977,000      1,903,000
  8.24  $25,000 the first year and $100,000 the 
  8.25  second year for the government 
  8.26  information access council is available 
  8.27  only as matched, dollar for dollar, by 
  8.28  contributions from nonstate sources. 
  8.29  The information policy office, with the 
  8.30  advice of the attorney general, shall 
  8.31  monitor all computer systems 
  8.32  development projects conducted by state 
  8.33  agencies to assure that full 
  8.34  performance of contract requirements is 
  8.35  achieved and that any remedies provided 
  8.36  in such contracts for nonperformance or 
  8.37  inadequate performance are fully 
  8.38  pursued.  The information policy office 
  8.39  and the attorney general shall report 
  8.40  to the legislature by January 15, 1996, 
  8.41  on performance of contract requirements 
  8.42  related to large systems such as the 
  8.43  statewide systems project, and 
  8.44  Minnesota Medicaid Management 
  8.45  Information System, and the information 
  8.46  systems related to drivers' licenses. 
  8.47  Subd. 7.  Management Analysis 
  8.48         565,000        566,000
  8.49  Subd. 8.  Public Broadcasting 
  8.50       3,054,000      3,054,000
  8.51  $1,450,000 the first year and 
  8.52  $1,450,000 the second year are for 
  8.53  matching grants for public television.  
  8.54  Public television grant recipients 
  8.55  shall give special emphasis to 
  8.56  children's programming.  In addition, 
  9.1   public television grant recipients 
  9.2   shall promote program and outreach 
  9.3   initiatives that attempt to reduce 
  9.4   youth violence in our communities.  
  9.5   $600,000 the first year and $600,000 
  9.6   the second year are for public 
  9.7   television equipment needs.  Equipment 
  9.8   grant allocations shall be made after 
  9.9   considering the recommendations of the 
  9.10  Minnesota public television association.
  9.11  $320,000 the first year and $320,000 
  9.12  the second year are for community 
  9.13  service grants to public educational 
  9.14  radio stations, which must be allocated 
  9.15  after considering the recommendations 
  9.16  of the Association of Minnesota Public 
  9.17  Educational Radio Stations under 
  9.18  Minnesota Statutes, section 129D.14. 
  9.19  $494,000 the first year and $494,000 
  9.20  the second year are for equipment 
  9.21  grants to public radio stations.  These 
  9.22  grants must be allocated after 
  9.23  considering the recommendations of the 
  9.24  Association of Minnesota Public 
  9.25  Educational Radio Stations and 
  9.26  Minnesota Public Radio, Inc. 
  9.27  $15,000 each year is for a grant to the 
  9.28  association of Minnesota public 
  9.29  education radio stations for station 
  9.30  KMOJ.  This money may be used for 
  9.31  equipment. 
  9.32  $150,000 the first year and $150,000 
  9.33  the second year are for public 
  9.34  information television transmission of 
  9.35  legislative activities.  At least 
  9.36  one-half must go for programming to be 
  9.37  broadcast in rural Minnesota. 
  9.38  $25,000 the first year and $25,000 the 
  9.39  second year are for grants to the Twin 
  9.40  Cities regional cable channel. 
  9.41  If an appropriation for either year for 
  9.42  grants to public television or radio 
  9.43  stations is not sufficient, the 
  9.44  appropriation for the other year is 
  9.45  available for it. 
  9.46  Subd. 9.  Children's Museum 
  9.47          90,000         90,000
  9.48  This appropriation is for a grant to 
  9.49  the Minnesota Children's Museum. 
  9.50  Sec. 12.  INTERGOVERNMENTAL INFORMATION 
  9.51  SYSTEMS ADVISORY COUNCIL                 186,000        187,000
  9.52  These amounts must be subtracted from 
  9.53  the amount that would otherwise be 
  9.54  payable to local government aid under 
  9.55  Minnesota Statutes, chapter 477A, in 
  9.56  order to fund the intergovernmental 
  9.57  information systems advisory council. 
  9.58  The appropriation for a local 
 10.1   government financial reporting system 
 10.2   in Laws 1994, chapter 587, article 3, 
 10.3   section 3, clause (5), is available 
 10.4   until expended. 
 10.5   Sec. 13.  CAPITOL AREA ARCHITECTURAL 
 10.6   AND PLANNING BOARD                       358,000        262,000
 10.7   $50,000 the first year is for predesign 
 10.8   and design of a Minnesota Korean war 
 10.9   veterans' memorial on the capitol 
 10.10  grounds.  This appropriation is 
 10.11  available until expended.  In creating 
 10.12  the memorial, the board may accept 
 10.13  money from nonstate sources.  The board 
 10.14  shall select a site for the memorial 
 10.15  and conduct a selection process to 
 10.16  award the contracts for design and 
 10.17  construction of the memorial.  
 10.18  $50,000 the first year is to maintain 
 10.19  the police and peace officers memorial 
 10.20  on the capitol mall.  This 
 10.21  appropriation is available until spent. 
 10.22  The capitol area architectural and 
 10.23  planning board shall provide a 
 10.24  preliminary planning and programming 
 10.25  report for a human development center 
 10.26  in or near the capitol area of St. 
 10.27  Paul.  The planning and studies must be 
 10.28  done in collaboration with the city of 
 10.29  St. Paul foundations including, but not 
 10.30  limited to, the Minnesota Education 
 10.31  Foundation, the private sector, and 
 10.32  appropriate state departments 
 10.33  including, but not limited to, 
 10.34  administration, health, education, and 
 10.35  human services.  The focus of the 
 10.36  center will be on the development of 
 10.37  the human person.  The center is 
 10.38  intended to serve as a research and 
 10.39  demonstration center and will be the 
 10.40  result of a partnership between the 
 10.41  public and private sector.  The board 
 10.42  shall report the results of its studies 
 10.43  to the governor and legislature no 
 10.44  later than December 15, 1996. 
 10.45  Sec. 14.  FINANCE 
 10.46  Subdivision 1.  Total 
 10.47  Appropriation                         20,583,000     20,651,000
 10.48                Summary by Fund
 10.49  General              20,478,000    20,651,000
 10.50  Local Government
 10.51  Trust                   105,000      
 10.52  The amounts that may be spent from this 
 10.53  appropriation for each program are 
 10.54  specified in the following subdivisions.
 10.55  Subd. 2.  Accounting Services  
 10.56       3,986,000      4,003,000
 10.57  Subd. 3.  Accounts Receivable
 10.58  Operations
 11.1        4,327,000      3,577,000
 11.2   $600,000 the first year is for 
 11.3   modification and enhancement of the 
 11.4   accounts receivable system. 
 11.5   The commissioner of finance may 
 11.6   transfer money, as deemed necessary, to 
 11.7   other state agencies participating in 
 11.8   the accounts receivable project.  
 11.9   $175,000 the first year and $25,000 the 
 11.10  second year are for the debt collection 
 11.11  pilot program in article 5, section 16. 
 11.12  During the biennium ending June 30, 
 11.13  1997, to the extent feasible and 
 11.14  cost-effective, any new jobs created in 
 11.15  the debt collections entity must be 
 11.16  located in a county in greater 
 11.17  Minnesota that had a population loss of 
 11.18  five percent or more between the 1980 
 11.19  and 1990 census. 
 11.20  Subd. 4.  Budget Services 
 11.21       2,026,000      2,026,000
 11.22                Summary by Fund
 11.23  General               1,921,000     2,026,000
 11.24  Local Government
 11.25  Trust                   105,000      
 11.26  Subd. 5.  Economic Analysis  
 11.27         299,000        308,000
 11.28  Subd. 6.  Information Services 
 11.29       8,920,000      9,643,000
 11.30  Subd. 7.  Management Services 
 11.31       1,525,000      1,594,000
 11.32  Subd. 8.  General Reduction 
 11.33        (500,000)      (500,000) 
 11.34  The commissioner of finance shall make 
 11.35  reductions of $1,000,000 from programs 
 11.36  funded in this section.  The reductions 
 11.37  may be made in either year of the 
 11.38  biennium. 
 11.39  If federal funding for programs is 
 11.40  reduced or eliminated during the 
 11.41  biennium ending June 30, 1997, the 
 11.42  commissioner shall ensure to the extent 
 11.43  possible that the costs of reducing or 
 11.44  terminating the programs supported by 
 11.45  those funds are paid by federal funds. 
 11.46  Sec. 15.  EMPLOYEE RELATIONS 
 11.47  Subdivision 1.  Total 
 11.48  Appropriation                          7,726,000      7,731,000
 12.1   The amounts that may be spent from this 
 12.2   appropriation for each program are 
 12.3   specified in the following subdivisions.
 12.4   Subd. 2.  Human Resources
 12.5   Management
 12.6        6,894,000      6,899,000
 12.7   $325,000 each year is for a one-time 
 12.8   redesign of the state's human resources 
 12.9   programs, processes and policies, 
 12.10  including, but not limited to, 
 12.11  improving the employee performance 
 12.12  management process, recruitment and 
 12.13  hiring, retraining and deployment 
 12.14  capabilities, and classification of 
 12.15  state positions. 
 12.16  $190,000 the first year and $185,000 
 12.17  the second year are to expand and 
 12.18  target state workforce diversity 
 12.19  efforts.  These funds are to support 
 12.20  expanded, dedicated functions serving 
 12.21  protected groups in obtaining and 
 12.22  retaining state employment, and secure 
 12.23  greater opportunities for advancement 
 12.24  within state employment ranks for 
 12.25  under-represented groups.  The 
 12.26  commissioner must allocate these funds 
 12.27  exclusively to the purposes described 
 12.28  in the diversity-related budget 
 12.29  initiative in the governor's proposed 
 12.30  biennial budget for the department of 
 12.31  employee relations for the biennium 
 12.32  ending June 30, 1997.  The 1996 and 
 12.33  1998 performance reports prepared by 
 12.34  the commissioner under Minnesota 
 12.35  Statutes, sections 15.90 to 15.92, must 
 12.36  contain a separate section presenting 
 12.37  the agency's activities and the 
 12.38  outcomes attributable to implementation 
 12.39  of the diversity functions expanded or 
 12.40  improved pursuant to this 
 12.41  appropriation.  The commissioner of 
 12.42  finance shall include these amounts 
 12.43  when determining the base appropriation 
 12.44  level for the department of employee 
 12.45  relations for the biennium ending June 
 12.46  30, 1999. 
 12.47  Any unexpended balance on June 30, 
 12.48  1995, from the appropriations in Laws 
 12.49  1993, chapter 192, section 18, 
 12.50  subdivision 2, for implementation of 
 12.51  human resources management projects 
 12.52  does not cancel but is available for 
 12.53  expenditure in the 1996-1997 biennium. 
 12.54  This appropriation includes money for a 
 12.55  grant each year to the government 
 12.56  training service. 
 12.57  $75,000 the first year and $75,000 the 
 12.58  second year are for the Minnesota 
 12.59  quality college created by new 
 12.60  Minnesota Statutes, section 43A.211. 
 12.61  In order to maximize delivery of 
 12.62  services to the public, if layoffs of 
 12.63  state employees as defined in Minnesota 
 13.1   Statutes, chapter 43A, are necessary 
 13.2   during the biennium ending June 30, 
 13.3   1997, each agency with more than 50 
 13.4   full-time equivalent employees must 
 13.5   reduce at least the same percentage of 
 13.6   management and supervisory personnel as 
 13.7   line and support personnel. 
 13.8   If a state agency is to be abolished, 
 13.9   the classified positions of the agency 
 13.10  to be abolished with its incumbent 
 13.11  employees shall be transferred as 
 13.12  provided by Minnesota Statutes, section 
 13.13  15.039, subdivision 7.  The 
 13.14  commissioner of employee relations 
 13.15  shall assist agencies and bargaining 
 13.16  units to reach agreements that provide 
 13.17  options to layoff for affected 
 13.18  employees in accordance with Minnesota 
 13.19  Statutes, section 43A.045, as 
 13.20  interpreted by collective bargaining 
 13.21  agreements.  
 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 ways and means 
 13.35  committees by February 1, 1996, and 
 13.36  February 1, 1997.  Where outside 
 13.37  consultants and services are necessary, 
 13.38  agencies are encouraged to negotiate 
 13.39  contracts that will involve permanent 
 13.40  staff so as to upgrade and maximize 
 13.41  training of state personnel.  Money 
 13.42  spent on outside professional, 
 13.43  technical, and computer service 
 13.44  consultants must be reported by 
 13.45  February 1, 1997, to the senate finance 
 13.46  and house of representatives ways and 
 13.47  means committees. 
 13.48  During the biennium ending June 30, 
 13.49  1997, no two federated funding 
 13.50  campaigns that are related 
 13.51  organizations, as defined in Minnesota 
 13.52  Statutes, section 317A.011, subdivision 
 13.53  18, may be registered to participate in 
 13.54  the state employee combined charitable 
 13.55  campaign. 
 13.56  Subd. 3.  Employee Insurance
 13.57         832,000        832,000
 13.58  $104,000 the first year and $104,000 
 13.59  the second year from the general fund 
 13.60  are for the right-to-know contracts 
 13.61  administered through the employee 
 13.62  insurance division. 
 13.63  $728,000 the first year and $728,000 
 13.64  the second year from the general fund 
 14.1   are for workers' compensation 
 14.2   reinsurance premiums.  If the 
 14.3   appropriation for either year is 
 14.4   insufficient, the appropriation for the 
 14.5   other year is available. 
 14.6   The commissioner of finance shall 
 14.7   transfer in the second year of the 
 14.8   biennium $2,000,000 from the public 
 14.9   employees' insurance program account 
 14.10  within the employee benefits internal 
 14.11  service fund to the general fund. 
 14.12  During the biennium ending June 30, 
 14.13  1997, the commissioner shall continue 
 14.14  the health promotion and disease 
 14.15  prevention program for state employees 
 14.16  initiated in fiscal year 1994. 
 14.17  Sec. 16.  REVENUE 
 14.18  Subdivision 1.  Total  
 14.19  Appropriation                         75,904,000     74,975,000
 14.20                Summary by Fund
 14.21  General              73,804,000    73,196,000
 14.22  Local Government
 14.23  Trust                   326,000      
 14.24  Highway User          1,682,000     1,687,000
 14.25  Environmental            92,000        92,000 
 14.26  The amounts that may be spent from this 
 14.27  appropriation for each program are 
 14.28  specified in the following subdivisions.
 14.29  Subd. 2.  Income Tax 
 14.30      12,802,000     11,502,000
 14.31  $1,300,000 in fiscal year 1996 is for 
 14.32  payment of overtime to experienced 
 14.33  corporate audit staff to complete 
 14.34  processing of bank refund claims, and 
 14.35  to add temporary positions to perform 
 14.36  duties of personnel who have been 
 14.37  diverted to other duties associated 
 14.38  with bank refund claims.  Expenditures 
 14.39  and collections associated with this 
 14.40  appropriation must be reported 
 14.41  separately.  This amount is available 
 14.42  until June 30, 1997, and must not be 
 14.43  included in the budget base for the 
 14.44  biennium ending June 30, 1999. 
 14.45  Subd. 3.  Sales and Special Taxes 
 14.46      13,200,000     13,205,000
 14.47                Summary by Fund
 14.48  General              11,347,000    11,426,000
 14.49  Local Government
 14.50  Trust                    79,000          -0- 
 14.51  Highway User          1,682,000     1,687,000
 15.1   Environmental            92,000        92,000
 15.2   Subd. 4.  Property Tax and State Aids 
 15.3        2,880,000      2,880,000
 15.4                 Summary by Fund
 15.5   General               2,855,000     2,880,000
 15.6   Local Government
 15.7   Trust                    25,000         -0-
 15.8   $75,000 the first year and $75,000 the 
 15.9   second year must be subtracted from the 
 15.10  total taconite production tax revenues 
 15.11  distributed to local units of 
 15.12  government.  These amounts shall be 
 15.13  credited to the general fund and 
 15.14  appropriated to the department of 
 15.15  revenue for the costs and expenses 
 15.16  incurred by the department in 
 15.17  collecting and distributing taconite 
 15.18  production tax revenues. 
 15.19  Subd. 5.  Tax Operations 
 15.20      32,213,000     32,213,000
 15.21                Summary by Fund
 15.22  General              32,030,000    32,213,000
 15.23  Local Government
 15.24  Trust                   183,000          -0-
 15.25  During the biennium ending June 30, 
 15.26  1997, the commissioner shall not spend 
 15.27  more money to enforce the unfair 
 15.28  cigarette sales laws than the revenue 
 15.29  derived from fees imposed under the law.
 15.30  Subd. 6.  Legal and Research 
 15.31       3,728,000      3,728,000
 15.32                Summary by Fund
 15.33  General               3,689,000     3,728,000
 15.34  Local Government
 15.35  Trust                    39,000          -0-
 15.36  Subd. 7.  Administrative Support 
 15.37      11,431,000     11,847,000
 15.38  Subd. 8.  General Reduction  
 15.39        (350,000)      (400,000)
 15.40  The commissioner shall allocate the 
 15.41  general reduction among the 
 15.42  department's programs. 
 15.43  Sec. 17.  AMATEUR SPORTS 
 15.44  COMMISSION                             1,938,000      1,942,000
 15.45  (a) $45,000 each year is for the 
 15.46  following purposes: 
 16.1   (1) Target Center programming; and 
 16.2   (2) development of more amateur sports 
 16.3   opportunities for women, girls, 
 16.4   seniors, inner-city youth, and athletes 
 16.5   with special needs. 
 16.6   The amateur sports commission must work 
 16.7   with staff of the city of Minneapolis 
 16.8   and the metropolitan sports facilities 
 16.9   commission to:  research Minnesota's 
 16.10  capabilities to attract local, 
 16.11  national, and international amateur 
 16.12  events; meet with appropriate national 
 16.13  amateur sports governing bodies and 
 16.14  Olympic officials on a regular basis; 
 16.15  and create new grassroots events; all 
 16.16  of which will have a favorable economic 
 16.17  impact on the state. 
 16.18  (b) Of this appropriation: 
 16.19  (1) $1,226,000 the first year and 
 16.20  $1,227,000 the second year are for 
 16.21  grants for ice centers, under Minnesota 
 16.22  Statutes, section 240A.09, of up to 
 16.23  $250,000 each; 
 16.24  (2) $200,000 each year is for 
 16.25  renovation grants for existing ice 
 16.26  arenas; and 
 16.27  (3) $11,000 each year is for ice arena 
 16.28  technical assistance. 
 16.29  Sec. 18.  HUMAN RIGHTS   
 16.30  Subdivision 1.  Total 
 16.31  Appropriation                          3,446,000      3,263,000
 16.32  The amounts that may be spent from this 
 16.33  appropriation for each program are 
 16.34  specified in the following subdivisions.
 16.35  Subd. 2.  Contract Compliance 
 16.36         370,000        370,000
 16.37  Subd. 3.  Complaint Processing
 16.38       2,214,000      2,220,000
 16.39  Subd. 4.  Management Services
 16.40         862,000        673,000
 16.41  Sec. 19.  MILITARY AFFAIRS  
 16.42  Subdivision 1.  Total 
 16.43  Appropriation                          9,337,000     9,416,000
 16.44  The amounts that may be spent from this 
 16.45  appropriation for each program are 
 16.46  specified in the following subdivisions.
 16.47  Subd. 2.  Maintenance of Training 
 16.48  Facilities 
 16.49       5,431,000      5,497,000
 16.50  The appropriation for planning and 
 17.1   remodeling grants for 12 armories 
 17.2   scheduled to be sold or disposed of 
 17.3   pursuant to Laws 1992, chapter 511, 
 17.4   article 2, section 50, is available 
 17.5   until June 30, 1997. 
 17.6   Any unexpended and unencumbered 
 17.7   appropriation for the biennium ending 
 17.8   June 30, 1995, for the tuition 
 17.9   reimbursement program does not cancel, 
 17.10  but is carried forward and may be used 
 17.11  to pay assessments due to the cities of 
 17.12  New Brighton, Montevideo, Park Rapids, 
 17.13  and Rosemount. 
 17.14  Subd. 3.  General Support
 17.15       1,555,000      1,568,000
 17.16  $75,000 the first year and $75,000 the 
 17.17  second year are for expenses of 
 17.18  military forces ordered to active duty 
 17.19  under Minnesota Statutes, chapter 192.  
 17.20  If the appropriation for either year is 
 17.21  insufficient, the appropriation for the 
 17.22  other year is available for it.  
 17.23  Subd. 4.  Enlistment Incentives
 17.24       2,351,000      2,351,000 
 17.25  Obligations for the reenlistment bonus 
 17.26  program, suspended on December 31, 
 17.27  1991, shall be paid from the amounts 
 17.28  available within the enlistment 
 17.29  incentives program. 
 17.30  If appropriations for either year of 
 17.31  the biennium are insufficient, the 
 17.32  appropriation from the other year is 
 17.33  available.  The appropriations for 
 17.34  enlistment incentives are available 
 17.35  until expended. 
 17.36  Sec. 20.  VETERANS AFFAIRS             3,832,000      3,820,000
 17.37  $230,000 the first year and $230,000 
 17.38  the second year are for grants to 
 17.39  county veterans offices for training of 
 17.40  county veterans service officers. 
 17.41  $1,544,000 the first year and 
 17.42  $1,544,000 the second year are for 
 17.43  emergency financial and medical needs 
 17.44  of veterans.  If the appropriation for 
 17.45  either year is insufficient, the 
 17.46  appropriation for the other year is 
 17.47  available for it.  
 17.48  With the approval of the commissioner 
 17.49  of finance, the commissioner of 
 17.50  veterans affairs may transfer the 
 17.51  unencumbered balance from the veterans 
 17.52  relief program to other department 
 17.53  programs during the fiscal year.  The 
 17.54  commissioner of veterans affairs shall 
 17.55  provide background information 
 17.56  explaining why the unencumbered balance 
 17.57  exists.  The amounts transferred must 
 17.58  be identified to the chairs of the 
 17.59  senate finance committee division on 
 18.1   state government and the house 
 18.2   governmental operations and gambling 
 18.3   committee division on state government 
 18.4   finance. 
 18.5   $250,000 the first year and $250,000 
 18.6   the second year are for a grant to the 
 18.7   Vinland National Center. 
 18.8   $16,200 is to be used to make a 
 18.9   contribution toward the women in 
 18.10  military service memorial at the 
 18.11  entrance to Arlington National Cemetery.
 18.12  $30,000 is to fund a program of the 
 18.13  Minnesota state council of the Vietnam 
 18.14  Veterans of America to assist Vietnam 
 18.15  veterans and Vietnam-era veterans in 
 18.16  the preparation and presentation of 
 18.17  their claims to the United States 
 18.18  government for compensation and other 
 18.19  benefits to which they are entitled as 
 18.20  a result of disabilities incurred in 
 18.21  military service.  This appropriation 
 18.22  may not be used for membership 
 18.23  recruitment.  This appropriation is 
 18.24  available until June 30, 1997. 
 18.25  Sec. 21.  VETERANS OF FOREIGN 
 18.26  WARS                                      41,000         41,000
 18.27  For carrying out the provisions of Laws 
 18.28  1945, chapter 455. 
 18.29  Sec. 22.  MILITARY ORDER OF 
 18.30  THE PURPLE HEART                          20,000         20,000
 18.31  Sec. 23.  DISABLED AMERICAN VETERANS      12,000         12,000
 18.32  For carrying out the provisions of Laws 
 18.33  1941, chapter 425. 
 18.34  Sec. 24.  LAWFUL GAMBLING  
 18.35  CONTROL                                2,081,000      2,039,000
 18.36  If the amount of unclaimed prize money 
 18.37  in the lottery prize fund during fiscal 
 18.38  year 1996 exceeds $5,000,000, 60 
 18.39  percent of the excess that is not added 
 18.40  to prize pools of subsequent games is 
 18.41  appropriated in fiscal year 1997 to the 
 18.42  gambling control board for information 
 18.43  systems.  The amount appropriated under 
 18.44  this paragraph may not exceed $650,000. 
 18.45  Sec. 25.  RACING COMMISSION              370,000        370,000
 18.46  Sec. 26.  STATE LOTTERY
 18.47  The director of the state lottery shall 
 18.48  reimburse the general fund $150,000 the 
 18.49  first year and $150,000 the second year 
 18.50  for lottery-related costs incurred by 
 18.51  the department of public safety. 
 18.52  The director of the state lottery shall 
 18.53  reimburse the general fund $540,000 the 
 18.54  first year and $540,000 the second year 
 18.55  for amounts appropriated from the 
 18.56  general fund to the commissioner of 
 18.57  human services for compulsive gambling 
 19.1   hotline services, outpatient treatment 
 19.2   services, felony screening, and 
 19.3   compulsive gambling youth education. 
 19.4   Sec. 27.  GENERAL CONTINGENT 
 19.5   ACCOUNTS                                 500,000        500,000
 19.6                 Summary by Fund
 19.7   General                 150,000       150,000
 19.8   State Government 
 19.9   Special Revenue         250,000       250,000
 19.10  Workers' Compensation   100,000       100,000
 19.11  The appropriations in this section must 
 19.12  be spent with the approval of the 
 19.13  governor after consultation with the 
 19.14  legislative advisory commission under 
 19.15  Minnesota Statutes, section 3.30. 
 19.16  If an appropriation in this section for 
 19.17  either year is insufficient, the 
 19.18  appropriation for the other year is 
 19.19  available for it. 
 19.20  The special revenue appropriation is 
 19.21  available to be transferred to the 
 19.22  attorney general when the costs to 
 19.23  provide legal services to the health 
 19.24  boards exceed the biennial 
 19.25  appropriation to the attorney general 
 19.26  from the special revenue fund.  The 
 19.27  boards receiving the additional 
 19.28  services shall set their fees to cover 
 19.29  the costs. 
 19.30  Sec. 28.  TORT CLAIMS                    300,000        275,000
 19.31  To be spent by the commissioner of 
 19.32  finance.  
 19.33  If the appropriation for either year is 
 19.34  insufficient, the appropriation for the 
 19.35  other year is available for it.  
 19.36  Sec. 29.  MINNESOTA STATE   
 19.37  RETIREMENT SYSTEM                      2,158,000      2,158,000
 19.38  The amounts estimated to be needed for 
 19.39  each program are as follows: 
 19.40  (a) Legislators 
 19.41       1,993,000      1,993,000
 19.42  Under Minnesota Statutes, sections 
 19.43  3A.03, subdivision 2; 3A.04, 
 19.44  subdivisions 3 and 4; and 3A.11. 
 19.45  (b) Constitutional Officers 
 19.46         165,000        165,000
 19.47  Under Minnesota Statutes, sections 
 19.48  352C.031, subdivision 5; 352C.04, 
 19.49  subdivision 3; and 352C.09, subdivision 
 19.50  2. 
 19.51  If an appropriation in this section for 
 20.1   either year is insufficient, the 
 20.2   appropriation for the other year is 
 20.3   available for it. 
 20.4   Sec. 30.  MINNEAPOLIS EMPLOYEES 
 20.5   RETIREMENT FUND                       11,005,000     11,005,000
 20.6   $10,455,000 the first year and 
 20.7   $10,455,000 the second year are to the 
 20.8   commissioner of finance for payment to 
 20.9   the Minneapolis employees retirement 
 20.10  fund under Minnesota Statutes, section 
 20.11  422A.101, subdivision 3.  Payment must 
 20.12  be made in four equal installments, 
 20.13  March 15, July 15, September 15, and 
 20.14  November 15, each year.  
 20.15  $550,000 the first year and $550,000 
 20.16  the second year are to the commissioner 
 20.17  of finance for payment to the 
 20.18  Minneapolis employees retirement fund 
 20.19  for the supplemental benefit for 
 20.20  pre-1973 retirees under Minnesota 
 20.21  Statutes, section 356.865. 
 20.22  Sec. 31.  POLICE AND FIRE   
 20.23  AMORTIZATION AID                       6,420,000      6,420,000
 20.24  $5,020,000 the first year and 
 20.25  $5,020,000 the second year are to the 
 20.26  commissioner of revenue for state aid 
 20.27  to amortize the unfunded liability of 
 20.28  local police and salaried firefighters' 
 20.29  relief associations, under Minnesota 
 20.30  Statutes, section 423A.02. 
 20.31  $1,000,000 the first year and 
 20.32  $1,000,000 the second year are to the 
 20.33  commissioner of revenue for 
 20.34  supplemental state aid to amortize the 
 20.35  unfunded liability of local police and 
 20.36  salaried firefighters' relief 
 20.37  associations under Minnesota Statutes, 
 20.38  section 423A.02, subdivision 1a. 
 20.39  $400,000 the first year and $400,000 
 20.40  the second year are to the commissioner 
 20.41  of revenue to pay reimbursements to 
 20.42  relief associations for firefighter 
 20.43  supplemental benefits paid under 
 20.44  Minnesota Statutes, section 424A.10. 
 20.45  Sec. 32.  SMALL AGENCY 
 20.46  SUPPLEMENT                                    420,000    910,000
 20.47               Summary by Fund
 20.48  General                 180,000       420,000
 20.49  State Government
 20.50  Special Revenue         115,000       240,000
 20.51  Workers'
 20.52  Compensation            125,000       250,000
 20.53  This appropriation is available in 
 20.54  either year of the biennium.  During 
 20.55  the biennium the commissioner shall 
 20.56  transfer the necessary dollars to the 
 20.57  small agency accounts, as determined by 
 20.58  the commissioner of finance, to cover 
 21.1   the costs of the collective bargaining 
 21.2   agreement.  
 21.3   The commissioner shall report to the 
 21.4   chair of the ways and means committee 
 21.5   of the house of representatives and the 
 21.6   chair of the finance committee of the 
 21.7   senate on the transfers made under 
 21.8   these provisions. 
 21.9   Sec. 33.  SALARY SUPPLEMENT
 21.10  The commissioner of finance, in 
 21.11  conjunction with the commissioner of 
 21.12  employee relations may transfer dollars 
 21.13  from unallocated balances within each 
 21.14  of the following funds to individual 
 21.15  agencies to cover the cost of 
 21.16  collective bargaining agreements 
 21.17  governing employees whose salaries are 
 21.18  paid from those funds:  state 
 21.19  government special revenue, health care 
 21.20  access, trunk highway, highway user, 
 21.21  state airport, game and fish, natural 
 21.22  resources, workers' compensation 
 21.23  special, environmental, and special 
 21.24  revenue.  The amounts necessary for 
 21.25  these transfers are appropriated from 
 21.26  each fund.  The amount appropriated 
 21.27  from each fund must be used only to pay 
 21.28  an increase from that fund in the same 
 21.29  percentage that each employee's 
 21.30  compensation is paid from that fund. 
 21.31  The commissioner of finance shall 
 21.32  report to the chair of the ways and 
 21.33  means committee of the house of 
 21.34  representatives and the chair of the 
 21.35  finance committee of the senate by 
 21.36  December 31, 1995, on the transfers 
 21.37  made under these provisions. 
 21.38  Sec. 34.  ATTORNEY GENERAL; MILLE LACS
 21.39  TREATY LITIGATION 
 21.40  $790,000 in fiscal year 1995 is added 
 21.41  to the appropriation in Laws 1993, 
 21.42  chapter 192, section 11, subdivision 3, 
 21.43  for the unanticipated expenses of the 
 21.44  Mille Lacs and Fond du Lac treaty 
 21.45  litigation efforts. 
 21.46     Sec. 35.  [3.225] [PROFESSIONAL AND TECHNICAL SERVICE 
 21.47  CONTRACTS.] 
 21.48     Subdivision 1.  [APPLICATION.] This section applies to a 
 21.49  contract for professional or technical services entered into by 
 21.50  the house of representatives, the senate, the legislative 
 21.51  coordinating commission, or any group under the jurisdiction of 
 21.52  the legislative coordinating commission.  For purposes of this 
 21.53  section, "professional or technical services" contract has the 
 21.54  meaning defined in section 16B.17. 
 21.55     Subd. 2.  [REQUIREMENTS FOR ALL CONTRACTS.] Before entering 
 22.1   into a contract for professional or technical services, the 
 22.2   contracting entity must determine that: 
 22.3      (1) all provisions of section 16B.19, subdivision 2, have 
 22.4   been verified or complied with; 
 22.5      (2) the work to be performed under the contract is 
 22.6   necessary to the entity's achievement of its responsibilities; 
 22.7      (3) the contract will not establish an employment 
 22.8   relationship between the state or the entity and any persons 
 22.9   performing under the contract; 
 22.10     (4) no current legislative employees will engage in the 
 22.11  performance of the contract; 
 22.12     (5) no state agency has previously performed or contracted 
 22.13  for the performance of tasks which would be substantially 
 22.14  duplicated under the proposed contract; 
 22.15     (6) the contracting entity has specified a satisfactory 
 22.16  method of evaluating and using the results of the work to be 
 22.17  performed; and 
 22.18     (7) the combined contract and amendments will not extend 
 22.19  for more than five years. 
 22.20     Subd. 3.  [CONTRACTS OVER $5,000.] Before an entity may 
 22.21  seek to enter into a professional or technical services contract 
 22.22  valued in excess of $5,000, it must determine that: 
 22.23     (1) no current legislative employee is able and available 
 22.24  to perform the services called for by the contract; 
 22.25     (2) reasonable efforts were made to publicize the 
 22.26  availability of the contract to the public; 
 22.27     (3) the entity has received, reviewed, and accepted a 
 22.28  detailed work plan from the contractor for performance under the 
 22.29  contract; and 
 22.30     (4) the entity has developed, and fully intends to 
 22.31  implement, a written plan providing for:  the assignment of 
 22.32  personnel to a monitoring and liaison function; the periodic 
 22.33  review of interim reports or other indications of past 
 22.34  performance; and the ultimate utilization of the final product 
 22.35  of the services. 
 22.36     Subd. 4.  [RENEWALS.] The renewal of a professional or 
 23.1   technical service contract must comply with all requirements, 
 23.2   including notice, applicable to the original contract.  A 
 23.3   renewal contract must be identified as such.  All notices and 
 23.4   reports on a renewal contract must state the date of the 
 23.5   original contract and the amount previously paid under the 
 23.6   contract. 
 23.7      Subd. 5.  [REPORTS.] (a) The house of representatives, the 
 23.8   senate, and the legislative coordinating commission shall submit 
 23.9   to the legislative reference library a monthly listing of all 
 23.10  contracts for professional or technical services executed in the 
 23.11  preceding month.  The report must identify the parties and the 
 23.12  contract amount, duration, and tasks to be performed. 
 23.13     (b) The monthly report must: 
 23.14     (1) be sorted by contracting entity and by contractor; 
 23.15     (2) show the aggregate value of contracts issued by each 
 23.16  agency and issued to each contractor; 
 23.17     (3) distinguish between contracts that are being issued for 
 23.18  the first time and contracts that are being renewed; 
 23.19     (4) state the termination date of each contract; and 
 23.20     (5) categorize contracts according to subject matter, 
 23.21  including topics such as contracts for training, contracts for 
 23.22  research and opinions, and contracts for computer systems. 
 23.23     (c) Within 30 days of final completion of a contract over 
 23.24  $40,000 covered by this subdivision, the chief executive of the 
 23.25  entity entering into the contract must file a one-page 
 23.26  performance report with the legislative reference library.  The 
 23.27  report must: 
 23.28     (1) summarize the purpose of the contract, including why it 
 23.29  was necessary to enter into a contract; 
 23.30     (2) state the amount spent on the contract; and 
 23.31     (3) explain why this amount was a cost-effective way to 
 23.32  enable the entity to provide its services or products better or 
 23.33  more efficiently. 
 23.34     Subd. 6.  [CONTRACT TERMS.] (a) A professional or technical 
 23.35  services contract must by its terms permit the contracting 
 23.36  entity to unilaterally terminate the contract prior to 
 24.1   completion, upon payment of just compensation, if the entity 
 24.2   determines that further performance under the contract would not 
 24.3   serve entity purposes.  If the final product of the contract is 
 24.4   a written report, a copy must be filed with the legislative 
 24.5   reference library. 
 24.6      (b) The terms of a contract must provide that no more than 
 24.7   90 percent of the amount due under the contract may be paid 
 24.8   until the final product has been reviewed by the person entering 
 24.9   into the contract on behalf of the contracting entity, and that 
 24.10  person has certified that the contractor has satisfactorily 
 24.11  fulfilled the terms of the contract. 
 24.12     Sec. 36.  Minnesota Statutes 1994, section 3.85, 
 24.13  subdivision 12, is amended to read: 
 24.14     Subd. 12.  [ALLOCATION OF ACTUARIAL COST.] (a) The 
 24.15  commission shall assess each retirement plan specified in 
 24.16  subdivision 11, paragraph (b), for a portion of the compensation 
 24.17  paid to the actuary retained by the commission for the actuarial 
 24.18  valuation calculations and quadrennial experience studies.  The 
 24.19  assessment is 72 100 percent of the amount of contract 
 24.20  compensation for the actuarial consulting firm retained by the 
 24.21  commission for actuarial valuation calculations, including the 
 24.22  public employees police and fire plan consolidation accounts of 
 24.23  the public employees retirement association, annual experience 
 24.24  data collection and processing, and quadrennial experience 
 24.25  studies.  
 24.26     The portion of the total assessment payable by each 
 24.27  retirement system or pension plan must be determined as follows: 
 24.28     (1) Each pension plan specified in subdivision 11, 
 24.29  paragraph (b), clauses (1) to (14), must pay the following 
 24.30  indexed amount based on its total active, deferred, inactive, 
 24.31  and benefit recipient membership: 
 24.32         up to 2,000 members, inclusive         $2.55 per member 
 24.33         2,001 through 10,000 members           $1.13 per member 
 24.34         over 10,000 members                    $0.11 per member  
 24.35     The amount specified is applicable for the assessment of 
 24.36  the July 1, 1991, to June 30, 1992, fiscal year actuarial 
 25.1   compensation amounts.  For the July 1, 1992, to June 30, 1993, 
 25.2   fiscal year and subsequent fiscal year actuarial compensation 
 25.3   amounts, the amount specified must be increased at the same 
 25.4   percentage increase rate as the implicit price deflator for 
 25.5   state and local government purchases of goods and services for 
 25.6   the 12-month period ending with the first quarter of the 
 25.7   calendar year following the completion date for the actuarial 
 25.8   valuation calculations, as published by the federal Department 
 25.9   of Commerce, and rounded upward to the nearest full cent. 
 25.10     (2) The total per-member portion of the allocation must be 
 25.11  determined, and that total per-member amount must be subtracted 
 25.12  from the total amount for allocation.  Of the remainder dollar 
 25.13  amount, the following per-retirement system and per-pension plan 
 25.14  charges must be determined and the charges must be paid by the 
 25.15  system or plan: 
 25.16     (i) 37.87 percent is the total additional per-retirement 
 25.17  system charge, of which one-seventh must be paid by each 
 25.18  retirement system specified in subdivision 11, paragraph (b), 
 25.19  clauses (1), (2), (6), (7), (9), (10), and (11). 
 25.20     (ii) 62.13 percent is the total additional per-pension plan 
 25.21  charge, of which one-thirteenth must be paid by each pension 
 25.22  plan specified in subdivision 11, paragraph (b), clauses (1) to 
 25.23  (13), if there are not any participants in the plan specified in 
 25.24  subdivision 11, paragraph (b), clause (14), or of which 
 25.25  one-fourteenth must be paid by each pension plan specified in 
 25.26  subdivision 11, paragraph (b), clauses (1) to (14), if there are 
 25.27  participants in the plan specified in subdivision 11, paragraph 
 25.28  (b), clause (14). 
 25.29     (b) The assessment must be made following the completion of 
 25.30  the actuarial valuation calculations and the experience 
 25.31  analysis.  The amount of the assessment is appropriated from the 
 25.32  retirement fund applicable to the retirement plan.  Receipts 
 25.33  from assessments must be deposited in the state treasury and 
 25.34  credited to the general fund. 
 25.35     Sec. 37.  Minnesota Statutes 1994, section 3.9741, 
 25.36  subdivision 2, as amended by Laws 1995, chapter 212, article 4, 
 26.1   section 1, is amended to read: 
 26.2      Subd. 2.  [POST-SECONDARY EDUCATION BOARD.] The legislative 
 26.3   auditor may enter into an interagency agreement with the board 
 26.4   of trustees of the Minnesota state colleges and universities to 
 26.5   conduct financial audits, in addition to audits conducted under 
 26.6   section 3.972, subdivision 2.  All payments received for audits 
 26.7   requested by the board shall be paid added to the appropriation 
 26.8   for the legislative auditor's account and need not be deposited 
 26.9   in the general fund auditor. 
 26.10     Sec. 38.  Minnesota Statutes 1994, section 3C.02, is 
 26.11  amended by adding a subdivision to read: 
 26.12     Subd. 6.  A contract for professional or technical services 
 26.13  that is valued at more than $50,000 may be made only after the 
 26.14  revisor has consulted with the legislative coordinating 
 26.15  commission.  The contract is subject to its recommendation as 
 26.16  provided by section 3C.10, subdivision 3, for a printing 
 26.17  contract. 
 26.18     Sec. 39.  Minnesota Statutes 1994, section 7.09, 
 26.19  subdivision 1, is amended to read: 
 26.20     Subdivision 1.  [PROCEDURE.] The state treasurer is 
 26.21  authorized to receive and accept, on behalf of the state, any 
 26.22  gift, bequest, devise, or endowment which may be made by any 
 26.23  person, by will, deed, gift, or otherwise, to or for the benefit 
 26.24  of the state, or any of its departments or agencies, or to or in 
 26.25  aid, or for the benefit, support, or maintenance of any 
 26.26  educational, charitable, or other institution maintained in 
 26.27  whole or in part by the state, or for the benefit of students, 
 26.28  employees, or inmates thereof, or for any proper state purpose 
 26.29  or function, and the money, property, or funds constituting such 
 26.30  gift, bequest, devise, or endowment.  No such gift, bequest, 
 26.31  devise, or endowment whose value is equal to or exceeds $10,000 
 26.32  shall be so accepted unless the commissioner of finance and the 
 26.33  state treasurer shall determine that it is for the interest of 
 26.34  the state to accept it, and shall approve of and direct the 
 26.35  acceptance.  If the value is less than $10,000, only the state 
 26.36  treasurer need determine that it is for the interest of the 
 27.1   state to accept it, and approve of and direct the acceptance.  
 27.2   When, in order to effect the purpose for which any gift, 
 27.3   bequest, devise, or endowment has been accepted, it is necessary 
 27.4   to sell property so received, the state treasurer, upon request 
 27.5   of the authority in charge of the agency, department, or 
 27.6   institution concerned, may sell it at a price which shall be 
 27.7   fixed by the state board of investment. 
 27.8      Sec. 40.  Minnesota Statutes 1994, section 15.061, is 
 27.9   amended to read: 
 27.10     15.061 [CONSULTANT, PROFESSIONAL AND OR TECHNICAL 
 27.11  SERVICES.] 
 27.12     Pursuant to the provisions of In accordance with section 
 27.13  16B.17, the head of a state department or agency may, with the 
 27.14  approval of the commissioner of administration, contract 
 27.15  for consultant services and professional and or technical 
 27.16  services in connection with the operation of the department or 
 27.17  agency.  A contract negotiated under this section shall is not 
 27.18  be subject to the competitive bidding requirements of chapter 16 
 27.19  16B. 
 27.20     Sec. 41.  Minnesota Statutes 1994, section 15.415, is 
 27.21  amended to read: 
 27.22     15.415 [CORRECTIONS IN TRANSACTIONS, WAIVER.] 
 27.23     In any instance where a correction concerning any state 
 27.24  department or agency transaction involves an amount less than 
 27.25  the administrative cost of making the correction, the correction 
 27.26  shall be waived unless it is possible at a relatively nominal 
 27.27  expense to include the correction in a later transaction.  If 
 27.28  the amount of any correction is less than $2 $5 it shall be 
 27.29  prima facie evidence that the cost of the correction would 
 27.30  exceed the amount involved.  
 27.31     Sec. 42.  Minnesota Statutes 1994, section 15.50, 
 27.32  subdivision 2, is amended to read: 
 27.33     Subd. 2.  [CAPITOL AREA PLAN.] (a) The board shall prepare, 
 27.34  prescribe, and from time to time, after a public hearing, amend 
 27.35  a comprehensive use plan for the capitol area, called the area 
 27.36  in this subdivision, which consists of that portion of the city 
 28.1   of Saint Paul comprehended within the following boundaries:  
 28.2   Beginning at the point of intersection of the center line of the 
 28.3   Arch-Pennsylvania freeway and the center line of Marion Street, 
 28.4   thence southerly along the center line of Marion Street extended 
 28.5   to a point 50 feet south of the south line of Concordia Avenue, 
 28.6   thence southeasterly along a line extending 50 feet from the 
 28.7   south line of Concordia Avenue to a point 125 feet from the west 
 28.8   line of John Ireland Boulevard, thence southwesterly along a 
 28.9   line extending 125 feet from the west line of John Ireland 
 28.10  Boulevard to the south line of Dayton Avenue, thence 
 28.11  northeasterly from the south line of Dayton Avenue to the west 
 28.12  line of John Ireland Boulevard, thence northeasterly to the 
 28.13  center line of the intersection of Old Kellogg Boulevard and 
 28.14  Summit Avenue, thence northeasterly along the center line of 
 28.15  Summit Avenue to the center line of the new West Kellogg 
 28.16  Boulevard, thence southerly along the east line of the new West 
 28.17  Kellogg Boulevard, to the center line of West Seventh Street, 
 28.18  thence northeasterly along the center line of West Seventh 
 28.19  Street to the center line of the Fifth Street ramp, thence 
 28.20  northwesterly along the center line of the Fifth Street ramp to 
 28.21  the east line of the right-of-way of Interstate Highway 35-E, 
 28.22  thence northeasterly along the east line of the right-of-way of 
 28.23  Interstate Highway 35-E to the south line of the right-of-way of 
 28.24  Interstate Highway 94, thence easterly along the south line of 
 28.25  the right-of-way of Interstate Highway 94 to the west line of 
 28.26  St. Peter Street, thence southerly to the south line of Eleventh 
 28.27  Exchange Street, thence easterly along the south line 
 28.28  of Eleventh Exchange Street to the west line of Cedar Street, 
 28.29  thence southeasterly northerly along the west line of Cedar 
 28.30  Street to the center line of Tenth Street, thence northeasterly 
 28.31  along the center line of Tenth Street to the center line of 
 28.32  Minnesota Street, thence northwesterly along the center line of 
 28.33  Minnesota Street to the center line of Eleventh Street, thence 
 28.34  northeasterly along the center line of Eleventh Street to the 
 28.35  center line of Jackson Street, thence northwesterly along the 
 28.36  center line of Jackson Street to the center line of the 
 29.1   Arch-Pennsylvania freeway extended, thence westerly along the 
 29.2   center line of the Arch-Pennsylvania freeway extended and Marion 
 29.3   Street to the point of origin.  If construction of the labor 
 29.4   interpretive center does not commence prior to December 31, 1998 
 29.5   2000, at the site recommended by the board, the boundaries of 
 29.6   the capitol area revert to their configuration as of 1992.  
 29.7      Under the comprehensive plan, or a portion of it, the board 
 29.8   may regulate, by means of zoning rules adopted under the 
 29.9   administrative procedure act, the kind, character, height, and 
 29.10  location, of buildings and other structures constructed or used, 
 29.11  the size of yards and open spaces, the percentage of lots that 
 29.12  may be occupied, and the uses of land, buildings and other 
 29.13  structures, within the area.  To protect and enhance the 
 29.14  dignity, beauty, and architectural integrity of the capitol 
 29.15  area, the board is further empowered to include in its zoning 
 29.16  rules design review procedures and standards with respect to any 
 29.17  proposed construction activities in the capitol area 
 29.18  significantly affecting the dignity, beauty, and architectural 
 29.19  integrity of the area.  No person may undertake these 
 29.20  construction activities as defined in the board's rules in the 
 29.21  capitol area without first submitting construction plans to the 
 29.22  board, obtaining a zoning permit from the board, and receiving a 
 29.23  written certification from the board specifying that the person 
 29.24  has complied with all design review procedures and standards.  
 29.25  Violation of the zoning rules is a misdemeanor.  The board may, 
 29.26  at its option, proceed to abate any violation by injunction.  
 29.27  The board and the city of Saint Paul shall cooperate in assuring 
 29.28  that the area adjacent to the capitol area is developed in a 
 29.29  manner that is in keeping with the purpose of the board and the 
 29.30  provisions of the comprehensive plan.  
 29.31     (b) The commissioner of administration shall act as a 
 29.32  consultant to the board with regard to the physical structural 
 29.33  needs of the state.  The commissioner shall make studies and 
 29.34  report the results to the board when it requests reports for its 
 29.35  planning purpose.  
 29.36     (c) No public building, street, parking lot, or monument, 
 30.1   or other construction may be built or altered on any public 
 30.2   lands within the area unless the plans for the project conform 
 30.3   to the comprehensive use plan as specified in paragraph (d) and 
 30.4   to the requirement for competitive plans as specified in 
 30.5   paragraph (e).  No alteration substantially changing the 
 30.6   external appearance of any existing public building approved in 
 30.7   the comprehensive plan or the exterior or interior design of any 
 30.8   proposed new public building the plans for which were secured by 
 30.9   competition under paragraph (e) may be made without the prior 
 30.10  consent of the board.  The commissioner of administration shall 
 30.11  consult with the board regarding internal changes having the 
 30.12  effect of substantially altering the architecture of the 
 30.13  interior of any proposed building.  
 30.14     (d) The comprehensive plan must show the existing land uses 
 30.15  and recommend future uses including:  areas for public taking 
 30.16  and use; zoning for private land and criteria for development of 
 30.17  public land, including building areas, open spaces, monuments, 
 30.18  and other memorials; vehicular and pedestrian circulation; 
 30.19  utilities systems; vehicular storage; elements of landscape 
 30.20  architecture.  No substantial alteration or improvement may be 
 30.21  made to public lands or buildings in the area without the 
 30.22  written approval of the board.  
 30.23     (e) The board shall secure by competitions plans for any 
 30.24  new public building.  Plans for any comprehensive plan, 
 30.25  landscaping scheme, street plan, or property acquisition that 
 30.26  may be proposed, or for any proposed alteration of any existing 
 30.27  public building, landscaping scheme or street plan may be 
 30.28  secured by a similar competition.  A competition must be 
 30.29  conducted under rules prescribed by the board and may be of any 
 30.30  type which meets the competition standards of the American 
 30.31  Institute of Architects.  Designs selected become the property 
 30.32  of the state of Minnesota, and the board may award one or more 
 30.33  premiums in each competition and may pay the costs and fees that 
 30.34  may be required for its conduct.  At the option of the board, 
 30.35  plans for projects estimated to cost less than $1,000,000 may be 
 30.36  approved without competition provided the plans have been 
 31.1   considered by the advisory committee described in paragraph 
 31.2   (h).  Plans for projects estimated to cost less than $400,000 
 31.3   and for construction of streets need not be considered by the 
 31.4   advisory committee if in conformity with the comprehensive plan. 
 31.5      (f) Notwithstanding paragraph (e), an architectural 
 31.6   competition is not required for the design of any light rail 
 31.7   transit station and alignment within the capitol area.  The 
 31.8   board and its advisory committee shall select a preliminary 
 31.9   design for any transit station in the capitol area.  Each stage 
 31.10  of any station's design through working drawings must be 
 31.11  reviewed by the board's advisory committee and approved by the 
 31.12  board to ensure that the station's design is compatible with the 
 31.13  comprehensive plan for the capitol area and the board's design 
 31.14  criteria.  The guideway and track design of any light rail 
 31.15  transit alignment within the capitol area must also be reviewed 
 31.16  by the board's advisory committee and approved by the board. 
 31.17     (g) Of the amount available for the light rail transit 
 31.18  design, adequate funds must be available to the board for design 
 31.19  framework studies and review of preliminary plans for light rail 
 31.20  transit alignment and stations in the capitol area. 
 31.21     (h) The board may not adopt any plan under paragraph (e) 
 31.22  unless it first receives the comments and criticism of an 
 31.23  advisory committee of three persons, each of whom is either an 
 31.24  architect or a planner, who have been selected and appointed as 
 31.25  follows:  one by the board of the arts, one by the board, and 
 31.26  one by the Minnesota Society of the American Institute of 
 31.27  Architects.  Members of the committee may not be contestants 
 31.28  under paragraph (e).  The comments and criticism must be a 
 31.29  matter of public information.  The committee shall advise the 
 31.30  board on all architectural and planning matters.  For that 
 31.31  purpose, the committee must be kept currently informed 
 31.32  concerning, and have access to, all data, including all plans, 
 31.33  studies, reports and proposals, relating to the area as the data 
 31.34  are developed or in the process of preparation, whether by the 
 31.35  commissioner of administration, the commissioner of trade and 
 31.36  economic development, the metropolitan council, the city of 
 32.1   Saint Paul, or by any architect, planner, agency or 
 32.2   organization, public or private, retained by the board or not 
 32.3   retained and engaged in any work or planning relating to the 
 32.4   area, and a copy of any data prepared by any public employee or 
 32.5   agency must be filed with the board promptly upon completion.  
 32.6      The board may employ stenographic or technical help that 
 32.7   may be reasonable to assist the committee to perform its duties. 
 32.8      When so directed by the board, the committee may serve as, 
 32.9   and any member or members of the committee may serve on, the 
 32.10  jury or as professional advisor for any architectural 
 32.11  competition, and the board shall select the architectural 
 32.12  advisor and jurors for any competition with the advice of the 
 32.13  committee.  
 32.14     The city of Saint Paul shall advise the board.  
 32.15     (i) The comprehensive plan for the area must be developed 
 32.16  and maintained in close cooperation with the commissioner of 
 32.17  trade and economic development, the planning department and the 
 32.18  council for the city of Saint Paul, and the board of the arts, 
 32.19  and no plan or amendment of a plan may be effective without 90 
 32.20  days' notice to the planning department of the city of Saint 
 32.21  Paul and the board of the arts and without a public hearing with 
 32.22  opportunity for public testimony.  
 32.23     (j) The board and the commissioner of administration, 
 32.24  jointly, shall prepare, prescribe, and from time to time revise 
 32.25  standards and policies governing the repair, alteration, 
 32.26  furnishing, appearance, and cleanliness of the public and 
 32.27  ceremonial areas of the state capitol building.  The board shall 
 32.28  consult with and receive advice from the director of the 
 32.29  Minnesota state historical society regarding the historic 
 32.30  fidelity of plans for the capitol building.  The standards and 
 32.31  policies developed under this paragraph are binding upon the 
 32.32  commissioner of administration.  The provisions of sections 
 32.33  14.02, 14.04 to 14.36, 14.38, and 14.44 to 14.45 do not apply to 
 32.34  this paragraph.  
 32.35     (k) The board in consultation with the commissioner of 
 32.36  administration shall prepare and submit to the legislature and 
 33.1   the governor no later than October 1 of each even-numbered year 
 33.2   a report on the status of implementation of the comprehensive 
 33.3   plan together with a program for capital improvements and site 
 33.4   development, and the commissioner of administration shall 
 33.5   provide the necessary cost estimates for the program.  The board 
 33.6   shall report any changes to the comprehensive plan adopted by 
 33.7   the board to the committee on governmental operations and 
 33.8   gambling of the house of representatives and the committee on 
 33.9   governmental operations and reform of the senate and upon 
 33.10  request shall provide testimony concerning the changes.  The 
 33.11  board shall also provide testimony to the legislature on 
 33.12  proposals for memorials in the capitol area as to their 
 33.13  compatibility with the standards, policies, and objectives of 
 33.14  the comprehensive plan. 
 33.15     (l) The state shall, by the attorney general upon the 
 33.16  recommendation of the board and within appropriations available 
 33.17  for that purpose, acquire by gift, purchase, or eminent domain 
 33.18  proceedings any real property situated in the area described in 
 33.19  this section, and it may also acquire an interest less than a 
 33.20  fee simple interest in the property, if it finds that the 
 33.21  property is needed for future expansion or beautification of the 
 33.22  area.  
 33.23     (m) The board is the successor of the state veterans 
 33.24  service building commission, and as such may adopt rules and may 
 33.25  reenact the rules adopted by its predecessor under Laws 1945, 
 33.26  chapter 315, and amendments to it.  
 33.27     (n) The board shall meet at the call of the chair and at 
 33.28  such other times as it may prescribe.  
 33.29     (o) The commissioner of administration shall assign 
 33.30  quarters in the state veterans service building to (1) the 
 33.31  department of veterans affairs, of which a part that the 
 33.32  commissioner of administration and commissioner of veterans 
 33.33  affairs may mutually determine must be on the first floor above 
 33.34  the ground, and (2) the American Legion, Veterans of Foreign 
 33.35  Wars, Disabled American Veterans, Military Order of the Purple 
 33.36  Heart, United Spanish War Veterans, and Veterans of World War I, 
 34.1   and their auxiliaries, incorporated, or when incorporated, under 
 34.2   the laws of the state, and (3) as space becomes available, to 
 34.3   other state departments and agencies as the commissioner may 
 34.4   deem desirable. 
 34.5      Sec. 43.  Minnesota Statutes 1994, section 15.91, 
 34.6   subdivision 2, is amended to read: 
 34.7      Subd. 2.  [PERFORMANCE REPORTS.] (a) Each agency shall 
 34.8   develop a performance report for the major programs that it 
 34.9   provides or administers.  The report shall include each of the 
 34.10  following items or an explanation of why an item does not apply 
 34.11  to the agency or its individual programs: 
 34.12     (1) a statement of the mission, goals, and objectives of 
 34.13  the agency including those set forth in statute; 
 34.14     (2) measures of the output and outcome of the program; 
 34.15     (3) identification of priority and other populations served 
 34.16  by the programs under current law and how those populations are 
 34.17  expected to change within the period of the report; 
 34.18     (4) plans for how outcome information can be used as an 
 34.19  incentive for improving state programs and program outcomes; 
 34.20     (5) requests for statutory flexibility needed to reach 
 34.21  outcome goals; 
 34.22     (6) proposals and cost estimates for collecting new outcome 
 34.23  information; and 
 34.24     (7) other information that may be required to explain the 
 34.25  past and projected performance of state programs. 
 34.26     The objectives required under clause (1):  (i) must be 
 34.27  simple declarative statements of intent; (ii) should carry 
 34.28  benchmarks for accomplishment; and (iii) should be specific 
 34.29  enough so citizens can measure progress year to year. 
 34.30     (b) Each agency shall issue a first annual report by 
 34.31  September 1, 1994, and annual updated reports no later than 
 34.32  September 1 of each year beginning in 1995.  A report must cover 
 34.33  a period of four years previous and two years in the future from 
 34.34  the date that it is required to be issued, including previous 
 34.35  forecasts versus actual measures. 
 34.36     (c) Each agency shall send a copy of each report issued to 
 35.1   the governor, the speaker of the house of representatives, the 
 35.2   president of the senate, the legislative commission on planning 
 35.3   and fiscal policy, the legislative auditor, the commissioner of 
 35.4   finance, and two copies to the legislative reference library. 
 35.5      (d) The legislative auditor shall review the drafts and 
 35.6   give comments to agencies and the legislature before September 
 35.7   1, 1994, and shall review and give comments on annual reports on 
 35.8   a rotating biennial schedule. 
 35.9      (e) State agency reports shall be compiled as required in 
 35.10  this paragraph.  The commissioner of finance, in consultation 
 35.11  with the commissioner of administration, the legislative 
 35.12  commission on planning and fiscal policy, and the finance 
 35.13  committees and divisions of the house of representatives and 
 35.14  senate, shall: 
 35.15     (1) develop forms and instructions and coordinate training 
 35.16  for the use of the agencies in the preparation of their reports; 
 35.17     (2) work with individual agencies to determine acceptable 
 35.18  measures of staff workload, unit costs, output, and outcome for 
 35.19  use in reports; and 
 35.20     (3) request any needed additional information concerning 
 35.21  any agency report submitted. 
 35.22     Each agency shall include citizens, agency clients, 
 35.23  consumer and advocacy groups, worker participation committees, 
 35.24  managers, elected officials, and contractors in its 
 35.25  planning.  By November 1 of each even-numbered year, each agency 
 35.26  shall issue a performance report that includes the following: 
 35.27     (1) the agency's mission; 
 35.28     (2) goals and objectives for each major program for which 
 35.29  the agency will request funding in its next biennial budget; 
 35.30     (3) identification of the populations served by the 
 35.31  programs; and 
 35.32     (4) workload, efficiency, output, and outcome measures for 
 35.33  each program listed in the report, with data showing each 
 35.34  programs' actual performance relative to these measures for the 
 35.35  previous four fiscal years and the performance the agency 
 35.36  projects it will achieve during the next two fiscal years with 
 36.1   the level of funding it has requested. 
 36.2      If it would enhance an understanding of its mission, 
 36.3   programs, and performance, the agency shall include in its 
 36.4   report information that describes the broader economic, social, 
 36.5   and physical environment in which the agency's programs are 
 36.6   administered. 
 36.7      Each agency shall send a copy of its performance report to 
 36.8   the speaker of the house, president of the senate, legislative 
 36.9   auditor, and legislative reference library, and provide a copy 
 36.10  to others upon request. 
 36.11     The commissioner of finance shall ensure that performance 
 36.12  reports are complete, accurate, and reliable and compiled in 
 36.13  such a way that they are useful to the public, legislators, and 
 36.14  managers in state government.  To maintain a computerized 
 36.15  performance data system, the commissioner of finance may require 
 36.16  agencies to provide performance data annually. 
 36.17     The legislative auditor shall review and comment on 
 36.18  performance reports as provided for by section 3.971, 
 36.19  subdivision 3. 
 36.20     Sec. 44.  [16A.101] [SERVICE CONTRACTS.] 
 36.21     The state accounting system must list expenditures for 
 36.22  professional and technical service contracts, as defined in 
 36.23  section 16B.17, as a separate category.  No other expenditures 
 36.24  may be included in this category. 
 36.25     Sec. 45.  Minnesota Statutes 1994, section 16A.11, is 
 36.26  amended by adding a subdivision to read: 
 36.27     Subd. 3b.  [CONTRACTS.] The detailed budget estimate must 
 36.28  also include the following information on professional or 
 36.29  technical services contracts: 
 36.30     (1) the number and amount of contracts over $40,000 for 
 36.31  each agency for the past biennium; 
 36.32     (2) the anticipated number and amount of contracts over 
 36.33  $40,000 for each agency for the upcoming biennium; and 
 36.34     (3) the total value of all contracts from the previous 
 36.35  biennium, and the anticipated total value of all contracts for 
 36.36  the upcoming biennium. 
 37.1      Sec. 46.  Minnesota Statutes 1994, section 16A.127, 
 37.2   subdivision 8, is amended to read: 
 37.3      Subd. 8.  [EXEMPTIONS.] (a) No statewide or agency indirect 
 37.4   cost liability shall be accrued to any program, appropriation, 
 37.5   or account that is specifically exempted from the liability in 
 37.6   federal or state law, or if the commissioner determines the 
 37.7   funds to be held in trust, or to be a pass-through, workshop, or 
 37.8   seminar account.  Accounts receiving proceeds from bond issues, 
 37.9   and those accounts whose funds are determined by the 
 37.10  commissioner to originate from the general fund, accounts are 
 37.11  also exempt from this section. 
 37.12     (b) Except for the costs of the legislative auditor to 
 37.13  conduct financial audits of federal funds, this section does not 
 37.14  apply to the community college board, state university board, or 
 37.15  the state board of technical colleges.  Receipts attributable to 
 37.16  financial audits conducted by the legislative auditor of federal 
 37.17  funds administered by these post-secondary education boards 
 37.18  shall be deposited in the general fund. 
 37.19     Sec. 47.  Minnesota Statutes 1994, section 16A.129, 
 37.20  subdivision 3, is amended to read: 
 37.21     Subd. 3.  [CASH ADVANCES.] When the operations of any 
 37.22  nongeneral fund account would be impeded by projected cash 
 37.23  deficiencies resulting from delays in the receipt of grants, 
 37.24  dedicated income, or other similar receivables, and when the 
 37.25  deficiencies would be corrected within the budget period 
 37.26  involved, the commissioner of finance may transfer use general 
 37.27  fund cash reserves into the accounts as necessary to meet cash 
 37.28  demands.  If funds are transferred from the general fund to meet 
 37.29  cash flow needs, the cash flow transfers must be returned to the 
 37.30  general fund as soon as sufficient cash balances are available 
 37.31  in the account to which the transfer was made.  Any interest 
 37.32  earned on general fund cash flow transfers accrues to the 
 37.33  general fund and not to the accounts or funds to which the 
 37.34  transfer was made. 
 37.35     Sec. 48.  Minnesota Statutes 1994, section 16A.28, 
 37.36  subdivision 5, is amended to read: 
 38.1      Subd. 5.  [PERMANENT IMPROVEMENTS.] An appropriation for 
 38.2   permanent improvements, including the acquisition of real 
 38.3   property does not lapse until the purposes of the appropriation 
 38.4   are determined by the commissioner, after consultation with the 
 38.5   affected agencies, to be accomplished or abandoned.  This 
 38.6   subdivision also applies to any part of an appropriation for a 
 38.7   fiscal year that has been requisitioned to acquire real property 
 38.8   or construct permanent improvements.  
 38.9      Sec. 49.  Minnesota Statutes 1994, section 16A.28, 
 38.10  subdivision 6, is amended to read: 
 38.11     Subd. 6.  [CANCELED SEPTEMBER 1 OCTOBER 15.] On September 1 
 38.12  October 15 all allotments and encumbrances for the last fiscal 
 38.13  year shall be canceled unless an agency head certifies to the 
 38.14  commissioner that there is an encumbrance for services rendered 
 38.15  or goods ordered in the last fiscal year, or certifies that 
 38.16  funding will be carried forward under subdivision 1.  The 
 38.17  commissioner may:  reinstate the part of the cancellation needed 
 38.18  to meet the certified encumbrance or charge the certified 
 38.19  encumbrance against the current year's appropriation. 
 38.20     Sec. 50.  Minnesota Statutes 1994, section 16A.40, is 
 38.21  amended to read: 
 38.22     16A.40 [WARRANTS.] 
 38.23     Money must not be paid out of the state treasury except 
 38.24  upon the warrant of the commissioner or an electronic fund 
 38.25  transfer approved by the commissioner.  Warrants must be drawn 
 38.26  on printed blanks that are in numerical order.  The commissioner 
 38.27  shall enter, in numerical order in a warrant register, the 
 38.28  number, amount, date, and payee for every warrant issued. 
 38.29     Sec. 51.  Minnesota Statutes 1994, section 16A.57, is 
 38.30  amended to read: 
 38.31     16A.57 [APPROPRIATION, ALLOTMENT, AND WARRANT NEEDED.] 
 38.32     Unless otherwise expressly provided by law, state money may 
 38.33  not be spent or applied without an appropriation, an allotment, 
 38.34  and issuance of a warrant or electronic fund transfer. 
 38.35     Sec. 52.  Minnesota Statutes 1994, section 16B.06, is 
 38.36  amended by adding a subdivision to read: 
 39.1      Subd. 7.  [COMPLIANCE.] The commissioner must develop 
 39.2   procedures to audit agency personnel to whom the commissioner 
 39.3   has delegated contracting authority, in order to ensure 
 39.4   compliance with laws and guidelines governing issuance of 
 39.5   contracts, including laws and guidelines governing conflicts of 
 39.6   interest. 
 39.7      Sec. 53.  [16B.167] [EMPLOYEE SKILLS INVENTORY.] 
 39.8      The commissioners of employee relations and administration 
 39.9   shall develop a list of skills that state agencies commonly seek 
 39.10  from professional or technical service contracts, in 
 39.11  consultation with exclusive representatives of state employees. 
 39.12     Before an agency may seek approval of a professional or 
 39.13  technical services contract valued in excess of $25,000, it must 
 39.14  certify to the commissioner that it has publicized the contract 
 39.15  by posting notice at appropriate worksites within agencies and 
 39.16  has made reasonable efforts to determine that no state employee, 
 39.17  including an employee outside the contracting agency, is able 
 39.18  and available to perform the services called for by the contract.
 39.19  When possible this posting must be done electronically. 
 39.20     Sec. 54.  Minnesota Statutes 1994, section 16B.17, is 
 39.21  amended to read: 
 39.22     16B.17 [CONSULTANTS AND PROFESSIONAL OR TECHNICAL 
 39.23  SERVICES.] 
 39.24     Subdivision 1.  [TERMS.] For the purposes of this section, 
 39.25  the following terms have the meanings given them: 
 39.26     (a) [CONSULTANT SERVICES.] "Consultant professional or 
 39.27  technical services" means services which that are intellectual 
 39.28  in character; which that do not involve the provision of 
 39.29  supplies or materials; which that include consultation analysis, 
 39.30  evaluation, prediction, planning, or recommendation; and which 
 39.31  that result in the production of a report or the completion of a 
 39.32  task.  
 39.33     (b) [PROFESSIONAL AND TECHNICAL SERVICES.] "Professional 
 39.34  and technical services" means services which are predominantly 
 39.35  intellectual in character; which do not involve the provision of 
 39.36  supplies or materials; and in which the final result is the 
 40.1   completion of a task rather than analysis, evaluation, 
 40.2   prediction, planning, or recommendation.  
 40.3      Subd. 2.  [PROCEDURE FOR CONSULTANT AND PROFESSIONAL AND OR 
 40.4   TECHNICAL SERVICES CONTRACTS.] Before approving a proposed state 
 40.5   contract for consultant services or professional and or 
 40.6   technical services, the commissioner must determine, at least, 
 40.7   that:  
 40.8      (1) all provisions of section 16B.19 and subdivision 3 of 
 40.9   this section have been verified or complied with; 
 40.10     (2) the work to be performed under the contract is 
 40.11  necessary to the agency's achievement of its statutory 
 40.12  responsibilities, and there is statutory authority to enter into 
 40.13  the contract; 
 40.14     (3) the contract will not establish an employment 
 40.15  relationship between the state or the agency and any persons 
 40.16  performing under the contract; 
 40.17     (4) no current state employees will engage in the 
 40.18  performance of the contract; 
 40.19     (5) no state agency has previously performed or contracted 
 40.20  for the performance of tasks which would be substantially 
 40.21  duplicated under the proposed contract; and 
 40.22     (6) the contracting agency has specified a satisfactory 
 40.23  method of evaluating and using the results of the work to be 
 40.24  performed; and 
 40.25     (7) the combined contract and amendments will not extend 
 40.26  for more than five years.  
 40.27     Subd. 3.  [DUTIES OF CONTRACTING AGENCY.] Before an agency 
 40.28  may seek approval of a consultant or professional and or 
 40.29  technical services contract valued in excess of $5,000, it must 
 40.30  certify to the commissioner that:  
 40.31     (1) no current state employee is able and available to 
 40.32  perform the services called for by the contract; 
 40.33     (2) the normal competitive bidding mechanisms will not 
 40.34  provide for adequate performance of the services; 
 40.35     (3) the services are not available as a product of a prior 
 40.36  consultant or professional and technical services contract, and 
 41.1   the contractor has certified that the product of the services 
 41.2   will be original in character; 
 41.3      (4) reasonable efforts were made to publicize the 
 41.4   availability of the contract to the public; 
 41.5      (5) the agency has received, reviewed, and accepted a 
 41.6   detailed work plan from the contractor for performance under the 
 41.7   contract; and 
 41.8      (6) the agency has developed, and fully intends to 
 41.9   implement, a written plan providing for the assignment of 
 41.10  specific agency personnel to a monitoring and liaison function;, 
 41.11  the periodic review of interim reports or other indications of 
 41.12  past performance, and the ultimate utilization of the final 
 41.13  product of the services; and 
 41.14     (7) the agency will not allow the contractor to begin work 
 41.15  before funds are fully encumbered. 
 41.16     Subd. 3a.  [RENEWALS.] The renewal of a professional or 
 41.17  technical contract must comply with all requirements, including 
 41.18  notice, applicable to the original contract.  A renewal contract 
 41.19  must be identified as such.  All notices and reports on a 
 41.20  renewal contract must state the date of the original contract 
 41.21  and the amount paid previously under the contract.  
 41.22     Subd. 4.  [REPORTS.] (a) The commissioner shall submit to 
 41.23  the governor, the chairs of the house ways and means and senate 
 41.24  finance committees, and the legislature legislative reference 
 41.25  library a monthly listing of all contracts for consultant 
 41.26  services and for professional and or technical services executed 
 41.27  or disapproved in the preceding month.  The report must identify 
 41.28  the parties and the contract amount, duration, and tasks to be 
 41.29  performed.  The commissioner shall also issue quarterly reports 
 41.30  summarizing the contract review activities of the department 
 41.31  during the preceding quarter. 
 41.32     (b) The monthly and quarterly reports must: 
 41.33     (1) be sorted by agency and by contractor; 
 41.34     (2) show the aggregate value of contracts issued by each 
 41.35  agency and issued to each contractor; 
 41.36     (3) distinguish between contracts that are being issued for 
 42.1   the first time and contracts that are being renewed; 
 42.2      (4) state the termination date of each contract; and 
 42.3      (5) categorize contracts according to subject matter, 
 42.4   including topics such as contracts for training, contracts for 
 42.5   research and opinions, and contracts for computer systems. 
 42.6      (c) Within 30 days of final completion of a contract over 
 42.7   $40,000 covered by this subdivision, the chief executive of the 
 42.8   agency entering into the contract must submit a one-page report 
 42.9   to the commissioner who must submit a copy to the legislative 
 42.10  reference library.  The report must: 
 42.11     (1) summarize the purpose of the contract, including why it 
 42.12  was necessary to enter into a contract; 
 42.13     (2) state the amount spent on the contract; and 
 42.14     (3) explain why this amount was a cost-effective way to 
 42.15  enable the agency to provide its services or products better or 
 42.16  more efficiently.  
 42.17     Subd. 5.  [CONTRACT TERMS.] (a) A consultant or technical 
 42.18  and professional or technical services contract must by its 
 42.19  terms permit the agency to unilaterally terminate the contract 
 42.20  prior to completion, upon payment of just compensation, if the 
 42.21  agency determines that further performance under the contract 
 42.22  would not serve agency purposes.  If the final product of the 
 42.23  contract is to be a written report, no more than three copies of 
 42.24  the report, one in camera ready form, shall be submitted to the 
 42.25  agency.  One of the copies a copy must be filed with the 
 42.26  legislative reference library.  
 42.27     (b) The terms of a contract must provide that no more than 
 42.28  90 percent of the amount due under the contract may be paid 
 42.29  until the final product has been reviewed by the chief executive 
 42.30  of the agency entering into the contract, and the chief 
 42.31  executive has certified that the contractor has satisfactorily 
 42.32  fulfilled the terms of the contract. 
 42.33     Subd. 6.  [EXCLUSIONS.] This section and section 16B.167 do 
 42.34  not apply: 
 42.35     (1) to Minnesota state college or university contracts to 
 42.36  provide instructional services to public or private 
 43.1   organizations, agencies, businesses, or industries; 
 43.2      (2) to contracts with individuals or organizations for 
 43.3   administration of employee pension plans authorized under 
 43.4   chapter 354B or 354C; or 
 43.5      (3) to instructional services provided to Minnesota state 
 43.6   colleges or universities by organizations or individuals 
 43.7   provided the contracts are consistent with terms of applicable 
 43.8   labor agreements. 
 43.9      Sec. 55.  [16B.175] [PROFESSIONAL OR TECHNICAL SERVICE 
 43.10  CONTRACT CONFLICT OF INTEREST GUIDELINES.] 
 43.11     Subdivision 1.  [DEVELOPMENT; APPLICABILITY.] The 
 43.12  commissioner of administration must develop guidelines designed 
 43.13  to prevent conflicts of interest for agency employees involved 
 43.14  in professional or technical service contracts.  The guidelines 
 43.15  must apply to agency employees who are directly or indirectly 
 43.16  involved in:  developing requests for proposals; evaluating 
 43.17  proposals; drafting and entering into professional or technical 
 43.18  service contracts; evaluating performance under these contracts; 
 43.19  and authorizing payments under the contract. 
 43.20     Subd. 2.  [CONTENT.] (a) The guidelines must attempt to 
 43.21  ensure that an employee involved in contracting: 
 43.22     (1) does not have any financial interest in and does not 
 43.23  personally benefit from the contract; 
 43.24     (2) does not accept from a contractor or bidder any 
 43.25  promise, obligation, contract for future reward, or gift; and 
 43.26     (3) does not appear to have a conflict of interest because 
 43.27  of a family or close personal relationship to a contractor or 
 43.28  bidder, or because of a past employment or business relationship 
 43.29  with a contractor or bidder. 
 43.30     (b) The guidelines must contain a process for making 
 43.31  employees aware of guidelines and laws relating to conflict of 
 43.32  interest, and for training employees on how to avoid and deal 
 43.33  with potential conflicts. 
 43.34     (c) The guidelines must contain a process under which an 
 43.35  employee who has a conflict or a potential conflict may disclose 
 43.36  the matter, and a process under which work on the contract may 
 44.1   be assigned to another employee if possible. 
 44.2      Sec. 56.  Minnesota Statutes 1994, section 16B.19, 
 44.3   subdivision 2, is amended to read: 
 44.4      Subd. 2.  [CONSULTANT, PROFESSIONAL AND OR TECHNICAL 
 44.5   PROCUREMENTS.] Every state agency shall for each fiscal year 
 44.6   designate for awarding to small businesses at least 25 percent 
 44.7   of the value of anticipated procurements of that agency for 
 44.8   consultant services or professional and or technical services.  
 44.9   The set-aside under this subdivision is in addition to that 
 44.10  provided by subdivision 1, but shall must otherwise comply with 
 44.11  section 16B.17. 
 44.12     Sec. 57.  Minnesota Statutes 1994, section 16B.19, 
 44.13  subdivision 10, is amended to read: 
 44.14     Subd. 10.  [APPLICABILITY.] This section does not apply to 
 44.15  construction contracts or contracts for consultant, 
 44.16  professional, or technical services under section 16B.17 that 
 44.17  are financed in whole or in part with federal funds and that are 
 44.18  subject to federal disadvantaged business enterprise regulations.
 44.19     Sec. 58.  Minnesota Statutes 1994, section 16B.42, 
 44.20  subdivision 3, is amended to read: 
 44.21     Subd. 3.  [OTHER DUTIES.] The intergovernmental 
 44.22  informations systems advisory council shall (1) recommend to the 
 44.23  commissioners of state departments, the legislative auditor, and 
 44.24  the state auditor a method for the expeditious gathering and 
 44.25  reporting of information and data between agencies and units of 
 44.26  local government in accordance with cooperatively developed 
 44.27  standards; (2) elect an executive committee, not to exceed seven 
 44.28  members from its membership; (3) develop an annual plan, to 
 44.29  include administration and evaluation of grants, in compliance 
 44.30  with applicable rules; (4) provide technical information systems 
 44.31  assistance or guidance to local governments for development, 
 44.32  implementation, and modification of automated systems, including 
 44.33  formation of consortiums for those systems; and (5) appoint 
 44.34  committees and task forces, which may include persons other than 
 44.35  council members, to assist the council in carrying out its 
 44.36  duties; (6) select an executive director to serve the council 
 45.1   and may employ other employees it deems necessary, all of whom 
 45.2   are in the classified service of the state civil service; (7) 
 45.3   may contract for professional and other similar services on 
 45.4   terms it deems desirable; and (8) work with the information 
 45.5   policy office to ensure that information systems developed by 
 45.6   state agencies that impact local government will be reviewed by 
 45.7   the council. 
 45.8      Sec. 59.  [16B.485] [INTERFUND LOANS.] 
 45.9      The commissioner may, with the approval of the commissioner 
 45.10  of finance, make loans from an internal service or enterprise 
 45.11  fund to another internal service or enterprise fund, and the 
 45.12  amount necessary is appropriated from the fund that makes the 
 45.13  loan.  The term of a loan made under this section must be not 
 45.14  more than 24 months.  
 45.15     Sec. 60.  Minnesota Statutes 1994, section 16B.88, 
 45.16  subdivision 1, is amended to read: 
 45.17     Subdivision 1.  [INFORMATION CENTER FOR VOLUNTEER 
 45.18  PROGRAMS.] (a) The office on of citizenship and volunteer 
 45.19  services is under the supervision and administration of an 
 45.20  executive a director appointed by the commissioner and referred 
 45.21  to in this section as "director.".  The office shall:  (1)  
 45.22  operate as a state information, technical assistance, and 
 45.23  promotion center for volunteer programs and needed services that 
 45.24  could be delivered by volunteer programs; and (2) promote and 
 45.25  facilitate citizen participation in local governance and public 
 45.26  problem solving. 
 45.27     (b) In furtherance of the mission in paragraph (a), clause 
 45.28  (2), the office shall: 
 45.29     (1) engage in education and other activities designed to 
 45.30  enhance the capacity of citizens to solve problems affecting 
 45.31  their communities; 
 45.32     (2) promote and support efforts by citizens, 
 45.33  community-based organizations, non-profits, churches, and local 
 45.34  governments to collaborate in solving community problems; 
 45.35     (3) encourage local governments to provide increased 
 45.36  opportunities for citizen involvement in public decision making 
 46.1   and public problem solving; 
 46.2      (4) refer innovative approaches to encourage greater public 
 46.3   access to and involvement in state and local government 
 46.4   decisions to appropriate state and local government officials; 
 46.5      (5) encourage units of state and local government to 
 46.6   respond to citizen initiatives and ideas; 
 46.7      (6) promote processes for involving citizens in government 
 46.8   decisions; and 
 46.9      (7) recognize and publicize models of effective public 
 46.10  problem solving by citizens. 
 46.11     A person or public or private agency may request 
 46.12  information on the availability of volunteer programs relating 
 46.13  to specific services and may report to the director whenever a 
 46.14  volunteer program is needed or desired. 
 46.15     Sec. 61.  Minnesota Statutes 1994, section 16B.88, 
 46.16  subdivision 2, is amended to read: 
 46.17     Subd. 2.  [COOPERATION WITH OTHER GROUPS.] The director 
 46.18  shall cooperate with national, state, and local volunteer groups 
 46.19  in collecting information on federal, state, and private 
 46.20  resources which may encourage and improve volunteer projects 
 46.21  within the state.  The office shall coordinate its research and 
 46.22  other work on citizen engagement with the board of government 
 46.23  innovation and cooperation, the Minnesota extension service, and 
 46.24  Project Public Life, Humphrey Institute, University of Minnesota.
 46.25     Sec. 62.  Minnesota Statutes 1994, section 16B.88, 
 46.26  subdivision 3, is amended to read: 
 46.27     Subd. 3.  [MONEY.] The director may accept and disburse 
 46.28  public or private funds and gifts made available for the 
 46.29  promotion of volunteer the office's programs. 
 46.30     Sec. 63.  Minnesota Statutes 1994, section 16B.88, 
 46.31  subdivision 4, is amended to read: 
 46.32     Subd. 4.  [RESEARCH AND INFORMATION.] The director shall 
 46.33  conduct research to:  (1) identify methods for increasing the 
 46.34  capacity of citizens to influence decisions affecting their 
 46.35  lives, identify methods citizens can use to solve problems in 
 46.36  their communities, and promote innovative techniques for citizen 
 47.1   and community-based organizations to collaborate in 
 47.2   understanding and solving community problems; and (2) identify 
 47.3   needs of volunteer programs and to assess community needs for 
 47.4   volunteer services.  The director may issue informational 
 47.5   materials relating to volunteer programs in Minnesota and 
 47.6   results of the director's research. 
 47.7      Sec. 64.  [43A.211] [MINNESOTA QUALITY COLLEGE.] 
 47.8      Subdivision 1.  [PURPOSE; GOALS.] The Minnesota quality 
 47.9   college is a program in the department of employee relations to 
 47.10  provide information on continuous quality improvement training 
 47.11  resources to state officials and employees in executive 
 47.12  agencies.  It is managed by the board established by subdivision 
 47.13  2.  The purpose of the program is to help agencies, officials, 
 47.14  and employees achieve the mission and goals of their 
 47.15  governmental unit, improve government's responsiveness to 
 47.16  citizens, increase workplace innovation at the employee level, 
 47.17  increase productivity, improve public leadership and employee 
 47.18  involvement, and build pride in public service.  Its goals are 
 47.19  to encourage cost savings and cost sharing among its clients, to 
 47.20  help clients ensure that money for quality improvement training 
 47.21  is wisely spent, and to develop and maintain a curriculum that 
 47.22  provides a base for the continuous improvement of quality skills 
 47.23  in Minnesota's public workforce.  The curriculum must be based 
 47.24  on a philosophy of quality that has these components:  customer 
 47.25  focus, continuous improvement, and employee empowerment and 
 47.26  leadership.  The board shall insure that state agencies and 
 47.27  employees have access to and are provided with information on 
 47.28  quality resources, encourage sharing and interagency 
 47.29  cooperation, and provide high-quality and ongoing training on 
 47.30  how to apply the philosophy of quality in public service.  
 47.31     Subd. 2.  [MANAGEMENT.] The commissioner shall convene a 
 47.32  board to manage the college.  The board must consist of the 
 47.33  commissioner; a commissioner from another agency appointed by 
 47.34  the governor; a private citizen experienced in the application 
 47.35  of the quality philosophy, appointed by the governor; a 
 47.36  representative of the exclusive representatives of employees in 
 48.1   the executive branch, selected by the exclusive representatives; 
 48.2   and two representatives of management-level executive agency 
 48.3   employees, selected by the commissioner.  The board shall take 
 48.4   action based on a consensus of its members present.  The board 
 48.5   shall identify training needs and potential resources to provide 
 48.6   different levels of training depending on the requirements and 
 48.7   stage of development of each customer.  Levels of training may 
 48.8   include basic quality training, special management training, 
 48.9   refresher courses, coaching, organizational culture change, and 
 48.10  applying quality tools.  The board shall attempt to design a 
 48.11  model curriculum, specific components and resources to achieve 
 48.12  the curriculum, and specific programs within that curriculum to 
 48.13  meet the expressed needs of customers. 
 48.14     Subd. 3.  [CUSTOMERS.] The primary customers of the college 
 48.15  are Minnesota state agencies, officials, and employees.  The 
 48.16  board may extend services to local governmental units, federal 
 48.17  agencies, educational institutions, and nonprofit organizations 
 48.18  within Minnesota, but shall first ensure that the needs of their 
 48.19  primary customers are adequately met.  The curriculum must be 
 48.20  organized to meet the needs of five separate groups of 
 48.21  customers:  elected officials, appointed officials, managers, 
 48.22  quality professionals, and public employees. 
 48.23     Subd. 4.  [SUPPLIERS.] The board may draw upon a range of 
 48.24  training resources, including: 
 48.25     (1) staff of the customer agency itself; 
 48.26     (2) other agencies, including courses offered by the 
 48.27  department or the organizational analysis services of the 
 48.28  management analysis division of the department of 
 48.29  administration; 
 48.30     (3) Minnesota public and private higher education 
 48.31  institutions; 
 48.32     (4) private consultants; 
 48.33     (5) professional organizations; and 
 48.34     (6) local governmental units and federal agencies. 
 48.35     Sec. 65.  Minnesota Statutes 1994, section 43A.27, 
 48.36  subdivision 2, is amended to read: 
 49.1      Subd. 2.  [ELECTIVE ELIGIBILITY.] The following persons, if 
 49.2   not otherwise covered by section 43A.24, may elect coverage for 
 49.3   themselves or their dependents at their own expense: 
 49.4      (a) a state employee, including persons on layoff from a 
 49.5   civil service position as provided in collective bargaining 
 49.6   agreements or a plan established pursuant to section 43A.18; 
 49.7      (b) an employee of the board of regents of the University 
 49.8   of Minnesota, including persons on layoff, as provided in 
 49.9   collective bargaining agreements or by the board of regents; 
 49.10     (c) an officer or employee of the state agricultural 
 49.11  society, state horticultural society, Sibley house association, 
 49.12  Minnesota humanities commission, Minnesota area industry labor 
 49.13  management councils, Minnesota international center, Minnesota 
 49.14  academy of science, science museum of Minnesota, Minnesota 
 49.15  safety council, state office of disabled American veterans, 
 49.16  state office of the American Legion and its auxiliary, state 
 49.17  office of veterans of foreign wars and its auxiliary, or state 
 49.18  office of the Military Order of the Purple Heart; 
 49.19     (d) a civilian employee of the adjutant general who is paid 
 49.20  from federal funds and who is not eligible for benefits from any 
 49.21  federal civilian employee group life insurance or health 
 49.22  benefits program; and 
 49.23     (e) an officer or employee of the state capitol credit 
 49.24  union or the highway credit union. 
 49.25     Sec. 66.  Minnesota Statutes 1994, section 43A.27, 
 49.26  subdivision 3, is amended to read: 
 49.27     Subd. 3.  [RETIRED EMPLOYEES.] A retired employee of the 
 49.28  state who receives an annuity under a state retirement 
 49.29  program or a retired employee of the state who is at least 50 
 49.30  years of age and has at least 15 years of state service may 
 49.31  elect to purchase at personal expense individual and dependent 
 49.32  hospital, medical, and dental coverages that are actuarially 
 49.33  equivalent to those made available through collective bargaining 
 49.34  agreements or plans established pursuant to section 43A.18 to 
 49.35  employees in positions equivalent to that from which retired.  A 
 49.36  spouse of a deceased retired employee who received an annuity 
 50.1   under a state retirement program may purchase the coverage 
 50.2   listed in this subdivision if the spouse was a dependent under 
 50.3   the retired employee's coverage at the time of the employee's 
 50.4   death.  Coverages must be coordinated with relevant health 
 50.5   insurance benefits provided through the federally sponsored 
 50.6   Medicare program.  Until the retired employee reaches age 65, 
 50.7   the retired employee and dependents must be pooled in the same 
 50.8   group as active employees for purposes of establishing premiums 
 50.9   and coverage for hospital, medical, and dental insurance.  
 50.10  Coverage for retired employees and their dependents may not 
 50.11  discriminate on the basis of evidence of insurability or 
 50.12  preexisting conditions unless identical conditions are imposed 
 50.13  on active employees in the group that the employee left.  
 50.14  Appointing authorities shall provide notice to employees no 
 50.15  later than the effective date of their retirement of the right 
 50.16  to exercise the option provided in this subdivision.  The 
 50.17  retired employee must notify the commissioner or designee of the 
 50.18  commissioner within 30 days after the effective date of the 
 50.19  retirement of intent to exercise this option. 
 50.20     Sec. 67.  Minnesota Statutes 1994, section 115C.02, is 
 50.21  amended by adding a subdivision to read: 
 50.22     Subd. 6a.  [FUND.] "Fund" means the petroleum tank release 
 50.23  cleanup fund. 
 50.24     Sec. 68.  Minnesota Statutes 1994, section 115C.08, 
 50.25  subdivision 1, is amended to read: 
 50.26     Subdivision 1.  [REVENUE SOURCES.] Revenue from the 
 50.27  following sources must be deposited in the state treasury and 
 50.28  credited to a petroleum tank release cleanup account in the 
 50.29  environmental fund: 
 50.30     (1) the proceeds of the fee imposed by subdivision 3; 
 50.31     (2) money recovered by the state under sections 115C.04, 
 50.32  115C.05, and 116.491, including administrative expenses, civil 
 50.33  penalties, and money paid under an agreement, stipulation, or 
 50.34  settlement; 
 50.35     (3) interest attributable to investment of money in the 
 50.36  account fund; 
 51.1      (4) money received by the board and agency in the form of 
 51.2   gifts, grants other than federal grants, reimbursements, or 
 51.3   appropriations from any source intended to be used for the 
 51.4   purposes of the account fund; 
 51.5      (5) fees charged for the operation of the tank installer 
 51.6   certification program established under section 116.491; and 
 51.7      (6) money obtained from the return of reimbursements, civil 
 51.8   penalties, or other board action under this chapter. 
 51.9      Sec. 69.  Minnesota Statutes 1994, section 115C.08, 
 51.10  subdivision 2, is amended to read: 
 51.11     Subd. 2.  [IMPOSITION OF FEE.] The board shall notify the 
 51.12  commissioner of revenue if the unencumbered balance of the 
 51.13  account fund falls below $4,000,000, and within 60 days after 
 51.14  receiving notice from the board, the commissioner of revenue 
 51.15  shall impose the fee established in subdivision 3 on the use of 
 51.16  a tank for four calendar months, with payment to be submitted 
 51.17  with each monthly distributor tax return. 
 51.18     Sec. 70.  Minnesota Statutes 1994, section 115C.08, 
 51.19  subdivision 4, is amended to read: 
 51.20     Subd. 4.  [EXPENDITURES.] (a) Money in the account fund may 
 51.21  only be spent:  
 51.22     (1) to administer the petroleum tank release cleanup 
 51.23  program established in this chapter; 
 51.24     (2) for agency administrative costs under sections 116.46 
 51.25  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 51.26  action taken by the agency under section 115C.03, including 
 51.27  investigations; 
 51.28     (3) for costs of recovering expenses of corrective actions 
 51.29  under section 115C.04; 
 51.30     (4) for training, certification, and rulemaking under 
 51.31  sections 116.46 to 116.50; 
 51.32     (5) for agency administrative costs of enforcing rules 
 51.33  governing the construction, installation, operation, and closure 
 51.34  of aboveground and underground petroleum storage tanks; 
 51.35     (6) for reimbursement of the harmful substance compensation 
 51.36  account under subdivision 5 and section 115B.26, subdivision 4; 
 52.1   and 
 52.2      (7) for administrative and staff costs as set by the board 
 52.3   to administer the petroleum tank release program established in 
 52.4   this chapter. 
 52.5      (b) Money in the account fund is appropriated to the board 
 52.6   to make reimbursements or payments under this section. 
 52.7      Sec. 71.  Minnesota Statutes 1994, section 116G.15, is 
 52.8   amended to read: 
 52.9      116G.15 [MISSISSIPPI RIVER CRITICAL AREA.] 
 52.10     (a) The federal Mississippi National River and Recreation 
 52.11  Area established pursuant to United States Code, title 16, 
 52.12  section 460zz-2(k), is designated an area of critical concern in 
 52.13  accordance with this chapter.  The governor shall review the 
 52.14  existing Mississippi river critical area plan and specify any 
 52.15  additional standards and guidelines to affected communities in 
 52.16  accordance with section 116G.06, subdivision 2, paragraph (b), 
 52.17  clauses (3) and (4), needed to insure preservation of the area 
 52.18  pending the completion of the federal plan. 
 52.19     The results of an environmental impact statement prepared 
 52.20  under chapter 116D begun before and completed after July 1, 
 52.21  1994, for a proposed project that is located in the Mississippi 
 52.22  river critical area north of the United States Army Corps of 
 52.23  Engineers Lock and Dam Number One must be submitted in a report 
 52.24  to the chairs of the environment and natural resources policy 
 52.25  and finance committees of the house of representatives and the 
 52.26  senate prior to the issuance of any state or local permits and 
 52.27  the authorization for an issuance of any bonds for the project.  
 52.28  A report made under this paragraph shall be submitted by the 
 52.29  responsible governmental unit that prepared the environmental 
 52.30  impact statement, and must list alternatives to the project that 
 52.31  are determined by the environmental impact statement to be 
 52.32  economically less expensive and environmentally superior to the 
 52.33  proposed project and identify any legislative actions that may 
 52.34  assist in the implementation of environmentally superior 
 52.35  alternatives.  This paragraph does not apply to a proposed 
 52.36  project to be carried out by the metropolitan council or a 
 53.1   metropolitan agency as defined in section 473.121. 
 53.2      (b) If the results of an environmental impact statement 
 53.3   required to be submitted by paragraph (a) indicate that there is 
 53.4   an economically less expensive and environmentally superior 
 53.5   alternative, then no member agency of the environmental quality 
 53.6   board shall issue a permit for the facility that is the subject 
 53.7   of the environmental impact statement, other than an 
 53.8   economically less expensive and environmentally superior 
 53.9   alternative, nor shall any government bonds be issued for the 
 53.10  facility, other than an economically less expensive and 
 53.11  environmentally superior alternative, until after the 
 53.12  legislature has adjourned its regular session sine die in 1996. 
 53.13     Sec. 72.  Minnesota Statutes 1994, section 197.05, is 
 53.14  amended to read: 
 53.15     197.05 [FUND, HOW EXPENDED.] 
 53.16     The state soldiers' assistance fund shall be administered 
 53.17  by the commissioner of veterans affairs and shall be used to 
 53.18  locate and investigate the facts as to any citizen of Minnesota 
 53.19  or resident alien residing in Minnesota who served in the 
 53.20  military or naval forces of the United States and who is 
 53.21  indigent or suffering from any disability whether acquired in 
 53.22  the service or not; to assist the person and the person's 
 53.23  dependents as hereinafter provided in establishing and proving 
 53.24  any just claim the person may have against the United States 
 53.25  government, or any other government or state for compensation, 
 53.26  insurance, relief, or other benefits; to provide emergency 
 53.27  hospitalization, treatment, maintenance, and relief for any 
 53.28  person suffering from disability who was a bona fide resident of 
 53.29  the state at the time the need arose and the person's 
 53.30  dependents, as hereinafter provided; and to cooperate with other 
 53.31  state, municipal, and county officials and civic or civilian 
 53.32  agencies or organizations in carrying out the provisions of 
 53.33  sections 197.01 to 197.07.  The commissioner shall limit 
 53.34  financial assistance to veterans and dependents to six months, 
 53.35  unless recipients have been certified as ineligible for other 
 53.36  benefit programs. 
 54.1      The fund is appropriated to be used in the manner 
 54.2   determined by the commissioner of veterans affairs for these 
 54.3   purposes. 
 54.4      Sec. 73.  Minnesota Statutes 1994, section 240.155, 
 54.5   subdivision 1, is amended to read: 
 54.6      Subdivision 1.  [REIMBURSEMENT ACCOUNT CREDIT.] Money 
 54.7   received by the commission as reimbursement for the costs of 
 54.8   services provided by assistant veterinarians and, stewards, and 
 54.9   medical testing of horses must be deposited in the state 
 54.10  treasury and credited to a racing commission reimbursement 
 54.11  account, except as provided under subdivision 2.  Receipts are 
 54.12  appropriated to the commission to pay the costs of providing the 
 54.13  services. 
 54.14     Sec. 74.  Minnesota Statutes 1994, section 240.24, 
 54.15  subdivision 3, is amended to read: 
 54.16     Subd. 3.  [FEES.] The commission shall establish by rule a 
 54.17  fee or schedule of fees to recover the costs of medical testing 
 54.18  of horses running at racetracks licensed by the commission.  
 54.19  Fees charged for the testing of horses shall cover the cost of 
 54.20  the medical testing laboratory.  Fee receipts shall be deposited 
 54.21  in the state treasury and credited to the general fund racing 
 54.22  reimbursement account. 
 54.23     Sec. 75.  Minnesota Statutes 1994, section 240A.08, is 
 54.24  amended to read: 
 54.25     240A.08 [APPROPRIATION.] 
 54.26     $750,000 is appropriated annually from the general fund to 
 54.27  the Minnesota amateur sports commission for the purpose of 
 54.28  entering into long-term leases, use, or other agreements with 
 54.29  the metropolitan sports facilities commission for the conduct of 
 54.30  amateur sports activities at the basketball and hockey arena, 
 54.31  consistent with the purposes set forth in this chapter, 
 54.32  including (1) stimulating and promoting amateur sports, (2) 
 54.33  promoting physical fitness by promoting participation in sports, 
 54.34  (3) promoting the development of recreational amateur sport 
 54.35  opportunities and activities, and (4) promoting local, regional, 
 54.36  national, and international amateur sport competitions and 
 55.1   events.  The metropolitan sports facilities commission may 
 55.2   allocate 50 dates a year for the conduct of amateur sports 
 55.3   activities at the basketball and hockey arena by the amateur 
 55.4   sports commission.  At least 12 of the dates must be on a 
 55.5   Friday, Saturday, or Sunday.  If any amateur sports activities 
 55.6   conducted by the amateur sports commission at the basketball and 
 55.7   hockey arena are restricted to participants of one gender, an 
 55.8   equal number of activities on comparable days of the week must 
 55.9   be conducted for participants of the other gender, but not 
 55.10  necessarily in the same year.  The legislature reserves the 
 55.11  right to repeal or amend this appropriation, and does not intend 
 55.12  this appropriation to create public debt. 
 55.13     The books, records, documents, accounting procedures, and 
 55.14  practices of the metropolitan sports facilities commission, the 
 55.15  Minneapolis community development agency, and any corporation 
 55.16  with which the Minnesota amateur sports commission may contract 
 55.17  for use of the basketball and hockey arena are available for 
 55.18  review by the Minnesota amateur sports commission, the 
 55.19  legislative auditor, and the chairs of the state government 
 55.20  finance divisions of the senate and the house of 
 55.21  representatives, subject to chapter 13 and section 473.598, 
 55.22  subdivision 4. 
 55.23     Sec. 76.  Minnesota Statutes 1994, section 240A.09, is 
 55.24  amended to read: 
 55.25     240A.09 [PLAN DEVELOPMENT; CRITERIA.] 
 55.26     The Minnesota amateur sports commission shall develop a 
 55.27  plan to promote the development of proposals for new statewide 
 55.28  public ice facilities including proposals for ice centers and 
 55.29  matching grants based on the criteria in this section. 
 55.30     (a) For ice center proposals, the commission will give 
 55.31  priority to proposals that come from more than one local 
 55.32  government unit and that, in the metropolitan area as defined in 
 55.33  section 473.121, subdivision 2, involve construction of more 
 55.34  than three at least two ice sheets in a single facility. 
 55.35     (b) The Minnesota amateur sports commission shall 
 55.36  administer a site selection process for the ice centers.  The 
 56.1   commission shall invite proposals from cities or counties or 
 56.2   consortia of cities.  A proposal for an ice center must include 
 56.3   matching contributions including in-kind contributions of land, 
 56.4   access roadways and access roadway improvements, and necessary 
 56.5   utility services, landscaping, and parking. 
 56.6      (c) Proposals for ice centers and matching grants must 
 56.7   provide for meeting the demand for ice time for female groups by 
 56.8   offering up to 50 percent of prime ice time, as needed, to 
 56.9   female groups.  For purposes of this section, prime ice time 
 56.10  means the hours of 4:00 p.m. to 10:00 p.m. Monday to Friday and 
 56.11  9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.  
 56.12     (d) The location for all proposed facilities must be in 
 56.13  areas of maximum demonstrated interest and must maximize 
 56.14  accessibility to an arterial highway. 
 56.15     (e) To the extent possible, all proposed facilities must be 
 56.16  dispersed equitably and, must be located to maximize potential 
 56.17  for full utilization and profitable operation, and must 
 56.18  accommodate noncompetitive family and community skating for all 
 56.19  ages. 
 56.20     (f) The Minnesota amateur sports commission may also use 
 56.21  the funds to upgrade current facilities, purchase girls' ice 
 56.22  time, or conduct amateur women's hockey and other ice sport 
 56.23  tournaments. 
 56.24     (g) To the extent possible, 50 percent of all grants must 
 56.25  be awarded to communities in greater Minnesota.  
 56.26     (h) To the extent possible, technical assistance shall be 
 56.27  provided to Minnesota communities by the commission on ice arena 
 56.28  planning, design, and operation, including the marketing of ice 
 56.29  time. 
 56.30     (i) The commission may use funds for rehabilitation and 
 56.31  renovation grants.  Priority must be given to grant applications 
 56.32  for indoor air quality improvements, including zero emission ice 
 56.33  resurfacing equipment. 
 56.34     (j) At least ten percent of the grant funds must be used 
 56.35  for ice centers designed for sports other than hockey. 
 56.36     Sec. 77.  Minnesota Statutes 1994, section 240A.10, is 
 57.1   amended to read: 
 57.2      240A.10 [AGREEMENTS.] 
 57.3      Subdivision 1.  [ICE ARENA FACILITIES.] The Minnesota 
 57.4   amateur sports commission may enter into agreements with local 
 57.5   units of government and provide financial assistance in the form 
 57.6   of grants for the construction of ice arena facilities that in 
 57.7   the determination of the commission, conform to its criteria. 
 57.8      Subd. 2.  [EQUIPMENT; REVOLVING FUND.] The commission may 
 57.9   enter into cooperative purchasing agreements under section 
 57.10  471.59 with local governments to purchase ice arena equipment 
 57.11  and services through state contracts.  The cooperative ice arena 
 57.12  equipment purchasing revolving fund is a separate account in the 
 57.13  state treasury.  The commission may charge a fee to cover the 
 57.14  commission's administrative expenses to government units that 
 57.15  have joint or cooperative purchasing agreements with the state 
 57.16  under section 471.59.  The fees collected must be deposited in 
 57.17  the revolving fund established by this subdivision.  Money in 
 57.18  the fund is appropriated to the commission to administer the 
 57.19  programs and services covered by this subdivision. 
 57.20     Sec. 78.  Minnesota Statutes 1994, section 349.151, 
 57.21  subdivision 4b, is amended to read:  
 57.22     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
 57.23  The board may by rule authorize but not require the use of 
 57.24  pull-tab dispensing devices. 
 57.25     (b) Rules adopted under paragraph (a): 
 57.26     (1) must limit the number of pull-tab dispensing devices on 
 57.27  any permitted premises to three; 
 57.28     (2) must limit the use of pull-tab dispensing devices to a 
 57.29  permitted premises which is (i) a licensed premises for on-sales 
 57.30  of intoxicating liquor or 3.2 percent malt beverages or (ii) a 
 57.31  licensed bingo hall that allows gambling only by persons 18 
 57.32  years or older; and 
 57.33     (3) must prohibit the use of pull-tab dispensing devices at 
 57.34  any licensed premises where pull-tabs are sold other than 
 57.35  through a pull-tab dispensing device by an employee of the 
 57.36  organization who is also the lessor or an employee of the lessor.
 58.1      (c) The director may charge a manufacturer a fee of up to 
 58.2   $5,000 per pull-tab dispensing device to cover the costs of 
 58.3   services provided by an independent testing laboratory to 
 58.4   perform testing and analysis of pull-tab dispensing devices.  
 58.5   The director shall deposit in a separate account in the state 
 58.6   treasury all money the director receives as reimbursement for 
 58.7   the costs of services provided by independent testing 
 58.8   laboratories that have entered into contracts with the state to 
 58.9   perform testing and analysis of pull-tab dispensing devices.  
 58.10  Money in the account is appropriated to the director to pay the 
 58.11  costs of services under those contracts. 
 58.12     Sec. 79.  Minnesota Statutes 1994, section 349A.02, 
 58.13  subdivision 1, is amended to read: 
 58.14     Subdivision 1.  [DIRECTOR.] A state lottery is established 
 58.15  under the supervision and control of the director of the state 
 58.16  lottery appointed by the governor with the advice and consent of 
 58.17  the senate.  The governor shall appoint the director from a list 
 58.18  of at least three persons recommended to the governor by the 
 58.19  board.  The director must be qualified by experience and 
 58.20  training in the operation of a lottery to supervise the 
 58.21  lottery.  The director serves in the unclassified service.  The 
 58.22  annual salary rate authorized for the director is equal to 80 
 58.23  percent of the salary rate prescribed for the governor as of the 
 58.24  effective date of Laws 1993, chapter 146. 
 58.25     Sec. 80.  Minnesota Statutes 1994, section 349A.03, is 
 58.26  amended by adding a subdivision to read: 
 58.27     Subd. 4.  [BOARD ABOLISHED.] The board is abolished on July 
 58.28  1, 1995.  The terms of all members of the board serving on that 
 58.29  date expire on that date. 
 58.30     Sec. 81.  Minnesota Statutes 1994, section 349A.04, is 
 58.31  amended to read: 
 58.32     349A.04 [LOTTERY GAME PROCEDURES.] 
 58.33     The director may adopt game procedures governing the 
 58.34  following elements of the lottery: 
 58.35     (1) lottery games; 
 58.36     (2) ticket prices; 
 59.1      (3) number and size of prizes; 
 59.2      (4) methods of selecting winning tickets; and 
 59.3      (5) frequency and method of drawings. 
 59.4      The adoption of lottery game procedures is not subject to 
 59.5   chapter 14.  Before adopting a lottery game procedure, the 
 59.6   director shall submit the procedure to the board for its review 
 59.7   and comment. 
 59.8      Sec. 82.  Minnesota Statutes 1994, section 349A.05, is 
 59.9   amended to read: 
 59.10     349A.05 [RULES.] 
 59.11     The director may adopt rules, including emergency rules, 
 59.12  under chapter 14 governing the following elements of the lottery:
 59.13     (1) the number and types of lottery retailers' locations; 
 59.14     (2) qualifications of lottery retailers and application 
 59.15  procedures for lottery retailer contracts; 
 59.16     (3) investigation of lottery retailer applicants; 
 59.17     (4) appeal procedures for denial, suspension, or 
 59.18  cancellation of lottery retailer contracts; 
 59.19     (5) compensation of lottery retailers; 
 59.20     (6) accounting for and deposit of lottery revenues by 
 59.21  lottery retailers; 
 59.22     (7) procedures for issuing lottery procurement contracts 
 59.23  and for the investigation of bidders on those contracts; 
 59.24     (8) payment of prizes; 
 59.25     (9) procedures needed to ensure the integrity and security 
 59.26  of the lottery; and 
 59.27     (10) other rules the director considers necessary for the 
 59.28  efficient operation and administration of the lottery.  
 59.29     Before adopting a rule the director shall submit the rule 
 59.30  to the board for its review and comment.  
 59.31     Sec. 83.  Minnesota Statutes 1994, section 349A.06, 
 59.32  subdivision 2, is amended to read: 
 59.33     Subd. 2.  [QUALIFICATIONS.] (a) The director may not 
 59.34  contract with a retailer who: 
 59.35     (1) is under the age of 18; 
 59.36     (2) is in business solely as a seller of lottery tickets; 
 60.1      (3) owes $500 or more in delinquent taxes as defined in 
 60.2   section 270.72; 
 60.3      (4) has been convicted within the previous five years of a 
 60.4   felony or gross misdemeanor, any crime involving fraud or 
 60.5   misrepresentation, or a gambling-related offense; 
 60.6      (5) is a member of the immediate family, residing in the 
 60.7   same household, as the director, board member, or any employee 
 60.8   of the lottery; 
 60.9      (6) in the director's judgment does not have the financial 
 60.10  stability or responsibility to act as a lottery retailer, or 
 60.11  whose contracting as a lottery retailer would adversely affect 
 60.12  the public health, welfare, and safety, or endanger the security 
 60.13  and integrity of the lottery; or 
 60.14     (7) is a currency exchange, as defined in section 53A.01. 
 60.15     A contract entered into before August 1, 1990, which 
 60.16  violates clause (7) may continue in effect until its expiration 
 60.17  but may not be renewed. 
 60.18     (b) An organization, firm, partnership, or corporation that 
 60.19  has a stockholder who owns more than five percent of the 
 60.20  business or the stock of the corporation, an officer, or 
 60.21  director, that does not meet the requirements of paragraph (a), 
 60.22  clause (4), is not eligible to be a lottery retailer under this 
 60.23  section. 
 60.24     (c) The restrictions under paragraph (a), clause (4), do 
 60.25  not apply to an organization, partnership, or corporation if the 
 60.26  director determines that the organization, partnership, or firm 
 60.27  has terminated its relationship with the individual whose 
 60.28  actions directly contributed to the disqualification under this 
 60.29  subdivision. 
 60.30     Sec. 84.  Minnesota Statutes 1994, section 349A.08, 
 60.31  subdivision 5, is amended to read: 
 60.32     Subd. 5.  [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 
 60.33  lottery must be claimed by the winner within one year of the 
 60.34  date of the drawing at which the prize was awarded or the last 
 60.35  day sales were authorized for a game where a prize was 
 60.36  determined in a manner other than by means of a drawing.  If a 
 61.1   valid claim is not made for a prize payable directly by the 
 61.2   lottery by the end of this period, the unclaimed prize money 
 61.3   must be added by the director to prize pools of subsequent 
 61.4   lottery games the prize money is considered unclaimed and the 
 61.5   winner of the prize shall have no further claim to the prize.  A 
 61.6   prize won by a person who purchased the winning ticket in 
 61.7   violation of section 349A.12, subdivision 1, or won by a person 
 61.8   ineligible to be awarded a prize under subdivision 7 must be 
 61.9   treated as an unclaimed prize under this section.  The director 
 61.10  shall transfer 70 percent of all unclaimed prize money at the 
 61.11  end of each fiscal year from the lottery cash flow account as 
 61.12  follows:  of the 70 percent, 40 percent must be transferred to 
 61.13  the Minnesota environment and natural resources trust fund and 
 61.14  60 percent must be transferred to the general fund.  The 
 61.15  remaining 30 percent of the unclaimed prize money must be added 
 61.16  by the director to prize pools of subsequent lottery games. 
 61.17     Sec. 85.  Minnesota Statutes 1994, section 349A.08, 
 61.18  subdivision 7, is amended to read: 
 61.19     Subd. 7.  [PAYMENTS PROHIBITED.] (a) No prize may be paid 
 61.20  to a member of the board, the director or an employee of the 
 61.21  lottery, or a member of their families residing in the same 
 61.22  household of the member, director, or employee.  No prize may be 
 61.23  paid to an officer or employee of a vendor which at the time the 
 61.24  game or drawing was being conducted was involved with providing 
 61.25  goods or services to the lottery under a lottery procurement 
 61.26  contract. 
 61.27     (b) No prize may be paid for a stolen, altered, or 
 61.28  fraudulent ticket. 
 61.29     Sec. 86.  Minnesota Statutes 1994, section 349A.10, is 
 61.30  amended by adding a subdivision to read: 
 61.31     Subd. 7.  [TRANSFER OF CASH BALANCES.] (a) A lottery cash 
 61.32  flow account is created in the special revenue fund in the state 
 61.33  treasury.  At the end of each week the director shall deposit in 
 61.34  the lottery cash flow account from the lottery fund and the 
 61.35  lottery prize fund all amounts that the director determines are 
 61.36  not required for immediate use in the lottery fund or the 
 62.1   lottery prize fund.  The commissioner of finance shall credit to 
 62.2   the lottery cash flow account interest on all money deposited in 
 62.3   the lottery cash flow account under this subdivision.  
 62.4      (b) The director shall notify the commissioner of finance 
 62.5   whenever the director determines that money transferred under 
 62.6   paragraph (a) is required for the immediate use of the lottery 
 62.7   fund or the lottery prize fund.  Upon receiving the notification 
 62.8   the commissioner shall transfer the amount identified in the 
 62.9   notification.  Amounts necessary to make immediate payment for 
 62.10  expenses or prizes from the lottery fund or the prize fund are 
 62.11  appropriated from the lottery cash flow account to the director. 
 62.12     (c) The director shall notify the commissioner of finance 
 62.13  30 days after each month as to the amount of the net proceeds 
 62.14  that must be transferred under subdivision 5, and the director 
 62.15  shall notify the commissioner of finance 20 days after each 
 62.16  month as to the amount that must be transferred under section 
 62.17  297A.259, and as necessary the director shall notify the 
 62.18  commissioner of other amounts required by law to be transferred. 
 62.19     Sec. 87.  Minnesota Statutes 1994, section 349A.11, is 
 62.20  amended to read: 
 62.21     349A.11 [CONFLICT OF INTEREST.] 
 62.22     (a) The director, a board member, an employee of the 
 62.23  lottery, a member of the immediate family of the director, board 
 62.24  member, or employee residing in the same household may not: 
 62.25     (1) purchase a lottery ticket; 
 62.26     (2) have any personal pecuniary interest in any vendor 
 62.27  holding a lottery procurement contract, or in any lottery 
 62.28  retailer; or 
 62.29     (3) receive any gift, gratuity, or other thing of value, 
 62.30  excluding food or beverage, from any lottery vendor or lottery 
 62.31  retailer, or person applying to be a retailer or vendor, in 
 62.32  excess of $100 in any calendar year.  
 62.33     (b) A violation of paragraph (a), clause (1), is a 
 62.34  misdemeanor.  A violation of paragraph (a), clause (2), is a 
 62.35  gross misdemeanor.  A violation of paragraph (a), clause (3), is 
 62.36  a misdemeanor unless the gift, gratuity, or other item of value 
 63.1   received has a value in excess of $500, in which case a 
 63.2   violation is a gross misdemeanor.  
 63.3      (c) The director or an unclassified employee of the lottery 
 63.4   may not, within one year of terminating employment with the 
 63.5   lottery, accept employment with, act as an agent or attorney 
 63.6   for, or otherwise represent any person, corporation, or entity 
 63.7   that had any lottery procurement contract or bid for a lottery 
 63.8   procurement contract with the lottery within a period of two 
 63.9   years prior to the termination of their employment.  A violation 
 63.10  of this paragraph is a misdemeanor.  
 63.11     Sec. 88.  Minnesota Statutes 1994, section 349A.12, 
 63.12  subdivision 4, is amended to read: 
 63.13     Subd. 4.  [LOTTERY RETAILERS AND VENDORS.] A person who is 
 63.14  a lottery retailer, or is applying to be a lottery retailer, a 
 63.15  person applying for a contract with the director, or a person 
 63.16  under contract with the director to supply goods or services to 
 63.17  lottery may not pay, give, or make any economic opportunity, 
 63.18  gift, loan, gratuity, special discount, favor, hospitality, or 
 63.19  service, excluding food or beverage, having an aggregate value 
 63.20  of over $100 in any calendar year to the director, board member, 
 63.21  employee of the lottery, or to a member of the immediate family 
 63.22  residing in the same household as that person.  
 63.23     Sec. 89.  Minnesota Statutes 1994, section 352.15, 
 63.24  subdivision 3, is amended to read: 
 63.25     Subd. 3.  [DEDUCTING HEALTH INSURANCE PREMIUMS.] The board 
 63.26  may direct, at its discretion, the deduction of a retiree's 
 63.27  health or dental insurance premiums and transfer of the amounts 
 63.28  to a health or dental insurance carrier covering state 
 63.29  employees.  The insurance carrier must certify that the retired 
 63.30  employee has signed an authorization for the deduction and 
 63.31  provide a computer readable roster of covered retirees and 
 63.32  amounts.  The health or dental insurance carrier must refund 
 63.33  deductions withheld from a retiree's check in error directly to 
 63.34  the retiree.  The board shall require the insurance carrier to 
 63.35  reimburse the fund for the administrative expense of withholding 
 63.36  the premium amounts.  The insurance carrier shall assume 
 64.1   liability for any failure of the system to properly withhold the 
 64.2   premium amounts. 
 64.3      Sec. 90.  Minnesota Statutes 1994, section 462.358, 
 64.4   subdivision 2b, is amended to read: 
 64.5      Subd. 2b.  [DEDICATION.] The regulations may require that a 
 64.6   reasonable portion of any proposed subdivision be dedicated to 
 64.7   the public or preserved for public use as streets, roads, 
 64.8   sewers, electric, gas, and water facilities, storm water 
 64.9   drainage and holding areas or ponds and similar utilities and 
 64.10  improvements.  
 64.11     In addition, the regulations may require that a reasonable 
 64.12  portion of any proposed subdivision be dedicated to the public 
 64.13  or preserved for conservation purposes or for public use as 
 64.14  parks, recreational facilities as defined and outlined in 
 64.15  section 471.191, playgrounds, trails, wetlands, or open space; 
 64.16  provided that (a) the municipality may choose to accept an 
 64.17  equivalent amount in cash from the applicant for part or all of 
 64.18  the portion required to be dedicated to such public uses or 
 64.19  purposes based on the fair market value of the land no later 
 64.20  than at the time of final approval, (b) any cash payments 
 64.21  received shall be placed in a special fund by the municipality 
 64.22  used only for the purposes for which the money was obtained, (c) 
 64.23  in establishing the reasonable portion to be dedicated, the 
 64.24  regulations may consider the open space, park, recreational, or 
 64.25  common areas and facilities which the applicant proposes to 
 64.26  reserve for the subdivision, and (d) the municipality reasonably 
 64.27  determines that it will need to acquire that portion of land for 
 64.28  the purposes stated in this paragraph as a result of approval of 
 64.29  the subdivision. 
 64.30     Sec. 91.  Laws 1991, chapter 235, article 5, section 3, is 
 64.31  amended to read: 
 64.32     Sec. 3.  [REPEALER.] 
 64.33     Section 1, subdivision 2, is repealed effective July 1, 
 64.34  1995 1999. 
 64.35     Sec. 92.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 64.36     Appointing authorities in state government shall encourage 
 65.1   each employee to take an unpaid leave of absence for up to 160 
 65.2   hours during the period ending June 30, 1997.  Each appointing 
 65.3   authority approving such a leave shall allow the employee to 
 65.4   continue accruing vacation and sick leave, be eligible for paid 
 65.5   holidays and insurance benefits, accrue seniority, and accrue 
 65.6   service credit in state retirement plans permitting service 
 65.7   credits for authorized leaves of absence as if the employee had 
 65.8   actually been employed during the time of the leave.  If the 
 65.9   leave of absence is for one full pay period or longer, any 
 65.10  holiday pay shall be included in the first payroll warrant after 
 65.11  return from the leave of absence.  The appointing authority 
 65.12  shall attempt to grant requests for unpaid leaves of absence 
 65.13  consistent with the need to continue efficient operation of the 
 65.14  agency.  However, each appointing authority shall retain 
 65.15  discretion to grant or refuse to grant requests for leaves of 
 65.16  absence and to schedule and cancel leaves, subject to applicable 
 65.17  provisions of collective bargaining agreements and compensation 
 65.18  plans.  Any cost savings resulting from this section cancel to 
 65.19  the fund from which the money was saved.  It is anticipated that 
 65.20  this section will result in savings to the general fund of 
 65.21  $400,000 in each year of the biennium ending June 30, 1997. 
 65.22     Sec. 93.  [SPENDING LIMITATION ON CONTRACTS.] 
 65.23     (a) During the biennium ending June 30, 1997, the aggregate 
 65.24  amount spent by all departments or agencies defined in Minnesota 
 65.25  Statutes, section 15.91, subdivision 1, on professional or 
 65.26  technical service contracts may not exceed 95 percent of the 
 65.27  aggregate amount these departments or agencies spent on these 
 65.28  contracts during the biennium from July 1, 1993, to June 30, 
 65.29  1995.  For purposes of this section, professional or technical 
 65.30  service contracts are as defined in Minnesota Statutes, section 
 65.31  16B.17, but do not include contracts for highway construction or 
 65.32  maintenance, contracts between state agencies, contracts paid 
 65.33  for from insurance trust funds, gift and deposit funds, capital 
 65.34  projects funds, or federal funds, contracts with private 
 65.35  collection agencies, contracts that are entered into in 
 65.36  connection with the agency's distribution of grant funds, or 
 66.1   contracts entered into under Minnesota Statutes, section 
 66.2   16B.35.  The governor or a designated official must limit or 
 66.3   disapprove proposed contracts as necessary to comply with this 
 66.4   section. 
 66.5      (b) During the biennium ending June 30, 1997, the amount 
 66.6   spent by (1) the house of representatives; (2) the senate; and 
 66.7   (3) the legislative coordinating commission and all groups under 
 66.8   its jurisdiction, from direct-appropriated funds on professional 
 66.9   or technical service contracts may not exceed 95 percent of the 
 66.10  amount spent on these contracts from direct-appropriated funds 
 66.11  during the biennium from July 1, 1993, to June 30, 1995.  Each 
 66.12  entity listed in clauses (1), (2), and (3) of this paragraph 
 66.13  must be treated separately for purposes of determining 
 66.14  compliance with this paragraph, except that the legislative 
 66.15  coordinating commission and all groups under its jurisdiction 
 66.16  must be treated as one unit.  For purposes of this paragraph, 
 66.17  "professional or technical service contract" has the meaning 
 66.18  defined in section 16B.17, but does not include contracts for 
 66.19  actuarial services entered into by the legislative commission on 
 66.20  pensions and retirement, or contracts with other legislative or 
 66.21  state executive agencies.  The house of representatives 
 66.22  committee on rules and legislative administration, the senate 
 66.23  committee on rules and administration, and the legislative 
 66.24  coordinating commission must each determine the amount of the 
 66.25  reduction to be made under this paragraph. 
 66.26     Sec. 94.  [AGENCY EXAMINATION.] 
 66.27     During the interim between the 1995 and 1996 regular 
 66.28  sessions, the state government finance divisions of the senate 
 66.29  and house of representatives shall conduct a thorough review of 
 66.30  the operation and financing of the following state agencies:  
 66.31  the departments of administration, finance, revenue, and human 
 66.32  rights, the board of the arts, and the Minnesota amateur sports 
 66.33  commission.  The agencies shall make their books, records, 
 66.34  documents, accounting procedures, and practices available for 
 66.35  examination by the divisions and division staff.  Agency 
 66.36  personnel shall assist the divisions and division staff to 
 67.1   develop a better understanding of how the agencies operate. 
 67.2      Sec. 95.  [HEARINGS.] 
 67.3      The senate and house of representatives shall give full 
 67.4   hearings during the 1996 regular session to issues related to 
 67.5   the project in section 71. 
 67.6      Sec. 96.  [REVISOR INSTRUCTION.] 
 67.7      The revisor of statutes shall change the term "account," 
 67.8   where it refers to the petroleum tank release cleanup account, 
 67.9   to "fund" in the following sections of Minnesota Statutes:  
 67.10  115B.26, 115C.03, 115C.08, 115C.09, 115C.10, 115C.11, 115E.11, 
 67.11  and 135A.045, and in the headnote of section 115C.08. 
 67.12     Sec. 97.  [REPEALER.] 
 67.13     (a) Section 64 (43A.211) is repealed July 1, 1999. 
 67.14     (b) Minnesota Statutes 1994, section 115C.02, subdivision 
 67.15  1a, is repealed. 
 67.16     (c) Minnesota Statutes 1994, sections 349A.01, subdivision 
 67.17  2, and 349A.02, subdivision 8, are repealed. 
 67.18     Sec. 98.  [EFFECTIVE DATES.] 
 67.19     Subdivision 1.  [REVISOR.] Section 38 is effective July 1, 
 67.20  1997. 
 67.21     Subd. 2.  [1995 APPROPRIATIONS.] Section 34 is effective 
 67.22  the day following final enactment. 
 67.23     Subd. 3.  [AMATEUR SPORTS COMMISSION.] Sections 76, 77, and 
 67.24  90 are effective the day following final enactment. 
 67.25     Subd. 4.  [RETIRED EMPLOYEES.] Section 66 applies to people 
 67.26  who retire on or after the effective date of that section. 
 67.27     Subd. 5.  [PULL-TAB.] Section 78 is effective the day 
 67.28  following final enactment. 
 67.29     Subd. 6.  [UNCLAIMED PRIZES.] Section 84 is effective the 
 67.30  day following final enactment and applies to unclaimed prize 
 67.31  money not then committed to a prize pool. 
 67.32                             ARTICLE 2
 67.33                           BUILDING CODE 
 67.34     Section 1.  Minnesota Statutes 1994, section 16B.59, is 
 67.35  amended to read: 
 67.36     16B.59 [STATE BUILDING CODE; POLICY AND PURPOSE.] 
 68.1      The state building code governs the construction, 
 68.2   reconstruction, alteration, and repair of state-owned buildings 
 68.3   and other structures to which the code is applicable.  The 
 68.4   commissioner shall administer and amend a state code of building 
 68.5   construction which will provide basic and uniform performance 
 68.6   standards, establish reasonable safeguards for health, safety, 
 68.7   welfare, comfort, and security of the residents of this state 
 68.8   and provide for the use of modern methods, devices, materials, 
 68.9   and techniques which will in part tend to lower construction 
 68.10  costs.  The construction of buildings should be permitted at the 
 68.11  least possible cost consistent with recognized standards of 
 68.12  health and safety.  
 68.13     Sec. 2.  Minnesota Statutes 1994, section 16B.60, 
 68.14  subdivision 1, is amended to read: 
 68.15     Subdivision 1.  [SCOPE.] For the purposes of sections 
 68.16  16B.59 to 16B.73 16B.75, the terms defined in this section have 
 68.17  the meanings given them.  
 68.18     Sec. 3.  Minnesota Statutes 1994, section 16B.60, 
 68.19  subdivision 4, is amended to read: 
 68.20     Subd. 4.  [CODE.] "Code" means the state building code 
 68.21  adopted by the commissioner in accordance with sections 16B.59 
 68.22  to 16B.73 16B.75. 
 68.23     Sec. 4.  Minnesota Statutes 1994, section 16B.61, 
 68.24  subdivision 1, is amended to read: 
 68.25     Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
 68.26  16B.59 to 16B.73 16B.75, the commissioner shall by rule 
 68.27  establish a code of standards for the construction, 
 68.28  reconstruction, alteration, and repair of state-owned buildings, 
 68.29  governing matters of structural materials, design and 
 68.30  construction, fire protection, health, sanitation, and safety.  
 68.31  The code must conform insofar as practicable to model building 
 68.32  codes generally accepted and in use throughout the United 
 68.33  States.  In the preparation of the code, consideration must be 
 68.34  given to the existing statewide specialty codes presently in use 
 68.35  in the state.  Model codes with necessary modifications and 
 68.36  statewide specialty codes may be adopted by reference.  The code 
 69.1   must be based on the application of scientific principles, 
 69.2   approved tests, and professional judgment.  To the extent 
 69.3   possible, the code must be adopted in terms of desired results 
 69.4   instead of the means of achieving those results, avoiding 
 69.5   wherever possible the incorporation of specifications of 
 69.6   particular methods or materials.  To that end the code must 
 69.7   encourage the use of new methods and new materials.  Except as 
 69.8   otherwise provided in sections 16B.59 to 16B.73 16B.75, the 
 69.9   commissioner shall administer and enforce the provisions of 
 69.10  those sections.  
 69.11     Sec. 5.  Minnesota Statutes 1994, section 16B.61, 
 69.12  subdivision 2, is amended to read: 
 69.13     Subd. 2.  [ENFORCEMENT BY CERTAIN BODIES.] Under the 
 69.14  direction and supervision of the commissioner, the provisions of 
 69.15  the code relating to electrical installations shall be enforced 
 69.16  by the state board of electricity, pursuant to the Minnesota 
 69.17  electrical act, the provisions relating to plumbing shall be 
 69.18  enforced by the commissioner of health, the provisions relating 
 69.19  to fire protection the Minnesota uniform fire code shall be 
 69.20  enforced by the state fire marshal, the provisions relating to 
 69.21  high pressure steam piping and appurtenances and elevators shall 
 69.22  be enforced by the department of labor and industry, and the 
 69.23  code as applied to public school buildings shall be enforced by 
 69.24  the state board of education. Fees for inspections conducted by 
 69.25  the state board of electricity shall be paid in accordance with 
 69.26  the rules of the state board of electricity.  
 69.27     Sec. 6.  Minnesota Statutes 1994, section 16B.61, 
 69.28  subdivision 5, is amended to read: 
 69.29     Subd. 5.  [ACCESSIBILITY.] (a)  [PUBLIC BUILDINGS.] The 
 69.30  code must provide for making public buildings constructed or 
 69.31  remodeled after July 1, 1963, accessible to and usable by 
 69.32  physically handicapped persons, although this does not require 
 69.33  the remodeling of public buildings solely to provide 
 69.34  accessibility and usability to the physically handicapped when 
 69.35  remodeling would not otherwise be undertaken.  
 69.36     (b)  [LEASED SPACE.] No agency of the state may lease space 
 70.1   for agency operations in a non-state-owned building unless the 
 70.2   building satisfies the requirements of the state building code 
 70.3   for accessibility by the physically handicapped, or is eligible 
 70.4   to display the state symbol of accessibility.  This limitation 
 70.5   applies to leases of 30 days or more for space of at least 1,000 
 70.6   square feet.  
 70.7      (c)  [MEETINGS OR CONFERENCES.] Meetings or conferences for 
 70.8   the public or for state employees which are sponsored in whole 
 70.9   or in part by a state agency must be held in buildings that meet 
 70.10  the state building code requirements relating to accessibility 
 70.11  for physically handicapped persons.  This subdivision does not 
 70.12  apply to any classes, seminars, or training programs offered by 
 70.13  a state university, the University of Minnesota, or a state 
 70.14  community college.  Meetings or conferences intended for 
 70.15  specific individuals none of whom need the accessibility 
 70.16  features for handicapped persons specified in the state building 
 70.17  code need not comply with this subdivision unless a handicapped 
 70.18  person gives reasonable advance notice of an intent to attend 
 70.19  the meeting or conference.  When sign language interpreters will 
 70.20  be provided, meetings or conference sites must be chosen which 
 70.21  allow hearing impaired participants to see their signing clearly.
 70.22     (d)  [EXEMPTIONS.] The commissioner may grant an exemption 
 70.23  from the requirements of paragraphs (b) and (c) in advance if an 
 70.24  agency has demonstrated that reasonable efforts were made to 
 70.25  secure facilities which complied with those requirements and if 
 70.26  the selected facilities are the best available for access for 
 70.27  handicapped persons.  Exemptions shall be granted using criteria 
 70.28  developed by the commissioner in consultation with the council 
 70.29  on disability.  
 70.30     (e)  [SYMBOL INDICATING ACCESS.] The wheelchair symbol 
 70.31  adopted by Rehabilitation International's Eleventh World 
 70.32  Congress is the state symbol indicating buildings, facilities, 
 70.33  and grounds which are accessible to and usable by handicapped 
 70.34  persons.  In the interests of uniformity, this symbol in its 
 70.35  white on blue format is the sole symbol for display in or on all 
 70.36  public or private buildings, facilities, and grounds which 
 71.1   qualify for its use.  The secretary of state shall obtain the 
 71.2   symbol and keep it on file.  No building, facility, or grounds 
 71.3   may display the symbol unless it is in compliance with the rules 
 71.4   adopted by the commissioner under subdivision 1.  Before any 
 71.5   rules are proposed for adoption under this paragraph, the 
 71.6   commissioner shall consult with the council on disability.  
 71.7   Rules adopted under this paragraph must be enforced in the same 
 71.8   way as other accessibility rules of the state building code.  
 71.9      (f)  [MUNICIPAL ENFORCEMENT.] Municipalities which have not 
 71.10  adopted the state building code may enforce the building code 
 71.11  requirements for handicapped persons by either entering into a 
 71.12  joint powers agreement for enforcement with another municipality 
 71.13  which has adopted the state building code; or contracting for 
 71.14  enforcement with an individual certified under section 16B.65, 
 71.15  subdivision 3, to enforce the state building code.  
 71.16     (g)  [EQUIPMENT ALLOWED.] The code must allow the use of 
 71.17  vertical wheelchair lifts and inclined stairway wheelchair lifts 
 71.18  in public buildings.  An inclined stairway wheelchair lift must 
 71.19  be equipped with light or sound signaling device for use during 
 71.20  operation of the lift.  The stairway or ramp shall be marked in 
 71.21  a bright color that clearly indicates the outside edge of the 
 71.22  lift when in operation.  The code shall not require a guardrail 
 71.23  between the lift and the stairway or ramp.  Compliance with this 
 71.24  provision by itself does not mean other handicap accessibility 
 71.25  requirements have been met. 
 71.26     Sec. 7.  Minnesota Statutes 1994, section 16B.63, 
 71.27  subdivision 3, is amended to read: 
 71.28     Subd. 3.  [POWERS AND DUTIES.] The state building official 
 71.29  may, with the approval of the commissioner, employ personnel 
 71.30  necessary to carry out the inspector's function under sections 
 71.31  16B.59 to 16B.73 16B.75.  The state building official shall 
 71.32  distribute without charge one copy of the code to each 
 71.33  municipality within the state.  Additional copies shall be made 
 71.34  available to municipalities and interested parties for a fee 
 71.35  prescribed by the commissioner.  The state building official 
 71.36  shall perform other duties in administering the code assigned by 
 72.1   the commissioner.  
 72.2      Sec. 8.  Minnesota Statutes 1994, section 16B.65, 
 72.3   subdivision 1, is amended to read: 
 72.4      Subdivision 1.  [APPOINTMENTS.] The governing body of each 
 72.5   municipality shall, unless other means are already provided, 
 72.6   appoint a person building official to administer the code who 
 72.7   shall be known as a building official.  Two or more 
 72.8   municipalities may combine in the appointment of a single 
 72.9   building official for the purpose of administering the 
 72.10  provisions of the code within their communities.  In those 
 72.11  municipalities for which no building officials have been 
 72.12  appointed, the state building inspector, with the approval of 
 72.13  the commissioner, may appoint building officials to serve until 
 72.14  the municipalities have made an appointment.  If unable to make 
 72.15  an appointment, the state building inspector may use whichever 
 72.16  state employees or state agencies are necessary to perform the 
 72.17  duties of the building official.  All costs incurred by virtue 
 72.18  of an appointment by the state building inspector or services 
 72.19  rendered by state employees must be borne by the involved 
 72.20  municipality.  Receipts arising from the appointment must be 
 72.21  paid into the state treasury and credited to the general fund.  
 72.22     Sec. 9.  Minnesota Statutes 1994, section 16B.65, 
 72.23  subdivision 3, is amended to read: 
 72.24     Subd. 3.  [CERTIFICATION.] The commissioner shall:  
 72.25     (1) prepare and conduct written and practical examinations 
 72.26  to determine if a person is qualified pursuant to subdivision 2 
 72.27  to be a building official; 
 72.28     (2) accept documentation of successful completion of 
 72.29  testing programs developed by nationally recognized testing 
 72.30  agencies, as proof of qualification pursuant to subdivision 2; 
 72.31  or 
 72.32     (3) determine qualifications by both clauses (1) and (2).  
 72.33     Upon a determination of qualification under clause (1), 
 72.34  (2), or both of them, the commissioner shall issue a certificate 
 72.35  to the building official stating that the official is 
 72.36  certified.  Each person applying for examination and 
 73.1   certification pursuant to this section shall pay a nonrefundable 
 73.2   fee of $70.  The commissioner or a designee may establish 
 73.3   classes of certification that will recognize the varying 
 73.4   complexities of code enforcement in the municipalities within 
 73.5   the state.  Except as provided by subdivision 2, no person may 
 73.6   act as a building official for a municipality unless the 
 73.7   commissioner determines that the official is qualified.  The 
 73.8   commissioner shall provide educational programs designed to 
 73.9   train and assist building officials in carrying out their 
 73.10  responsibilities. 
 73.11     The department of employee relations may, at the request of 
 73.12  the commissioner, provide statewide testing services. 
 73.13     Sec. 10.  Minnesota Statutes 1994, section 16B.65, 
 73.14  subdivision 4, is amended to read: 
 73.15     Subd. 4.  [DUTIES.] Building officials shall, in the 
 73.16  municipality for which they are appointed, attend to all aspects 
 73.17  of code administration for which they are certified, including 
 73.18  the issuance of all building permits and the inspection of all 
 73.19  manufactured home installations.  The commissioner may direct a 
 73.20  municipality with a building official to perform services for 
 73.21  another municipality, and in that event the municipality being 
 73.22  served shall pay the municipality rendering the services the 
 73.23  reasonable costs of the services.  The costs may be subject to 
 73.24  approval by the commissioner.  
 73.25     Sec. 11.  Minnesota Statutes 1994, section 16B.65, 
 73.26  subdivision 7, is amended to read: 
 73.27     Subd. 7.  [CONTINUING EDUCATION.] Subject to sections 
 73.28  16B.59 to 16B.73 16B.75, the commissioner may by rule establish 
 73.29  or approve continuing education programs for municipal building 
 73.30  officials dealing with matters of building code administration, 
 73.31  inspection, and enforcement.  
 73.32     Effective January 1, 1985, each person certified as a 
 73.33  building official for the state must satisfactorily complete 
 73.34  applicable educational programs established or approved by the 
 73.35  commissioner every three calendar years to retain certification. 
 73.36     Each person certified as a state building official must 
 74.1   submit in writing to the commissioner an application for renewal 
 74.2   of certification within 60 days of the last day of the third 
 74.3   calendar year following the last certificate issued.  Each 
 74.4   application for renewal must be accompanied by proof of 
 74.5   satisfactory completion of minimum continuing education 
 74.6   requirements and the certification renewal fee established by 
 74.7   the commissioner.  
 74.8      For persons certified prior to January 1, 1985, the first 
 74.9   three-year period commences January 1, 1985. 
 74.10     Sec. 12.  Minnesota Statutes 1994, section 16B.67, is 
 74.11  amended to read: 
 74.12     16B.67 [APPEALS.] 
 74.13     A person aggrieved by the final decision of any 
 74.14  municipality as to the application of the code, including any 
 74.15  rules adopted under sections 471.465 to 471.469, may, within 180 
 74.16  days of the decision, appeal to the commissioner.  Appellant 
 74.17  shall submit a nonrefundable fee of $70, payable to the 
 74.18  commissioner, with the request for appeal.  An appeal must be 
 74.19  heard as a contested case under chapter 14.  The commissioner 
 74.20  shall submit written findings to the parties.  The party not 
 74.21  prevailing shall pay the costs of the contested case hearing, 
 74.22  including fees charged by the office of administrative hearings 
 74.23  and the expense of transcript preparation.  Costs under this 
 74.24  section do not include attorney fees.  Any person aggrieved by a 
 74.25  ruling of the commissioner may appeal in accordance with chapter 
 74.26  14.  For the purpose of this section "any person aggrieved" 
 74.27  includes the council on disability.  No fee or costs shall be 
 74.28  required when the council on disability is the appellant.  
 74.29     Sec. 13.  Minnesota Statutes 1994, section 16B.70, is 
 74.30  amended to read: 
 74.31     16B.70 [SURCHARGE.] 
 74.32     Subdivision 1.  [COMPUTATION.] To defray the costs of 
 74.33  administering sections 16B.59 to 16B.73 16B.75, a surcharge is 
 74.34  imposed on all permits issued by municipalities in connection 
 74.35  with the construction of or addition or alteration to buildings 
 74.36  and equipment or appurtenances after June 30, 1971, as follows:  
 75.1      If the fee for the permit issued is fixed in amount the 
 75.2   surcharge is equivalent to one-half mill (.0005) of the fee or 
 75.3   50 cents, whichever amount is greater.  For all other permits, 
 75.4   the surcharge is as follows: 
 75.5      (1) if the valuation of the structure, addition, or 
 75.6   alteration is $1,000,000 or less, the surcharge is equivalent to 
 75.7   one-half mill (.0005) of the valuation of the structure, 
 75.8   addition, or alteration; 
 75.9      (2) if the valuation is greater than $1,000,000, the 
 75.10  surcharge is $500 plus two-fifths mill (.0004) of the value 
 75.11  between $1,000,000 and $2,000,000; 
 75.12     (3) if the valuation is greater than $2,000,000, the 
 75.13  surcharge is $900 plus three-tenths mill (.0003) of the value 
 75.14  between $2,000,000 and $3,000,000; 
 75.15     (4) if the valuation is greater than $3,000,000, the 
 75.16  surcharge is $1,200 plus one-fifth mill (.0002) of the value 
 75.17  between $3,000,000 and $4,000,000; 
 75.18     (5) if the valuation is greater than $4,000,000, the 
 75.19  surcharge is $1,400 plus one-tenth mill (.0001) of the value 
 75.20  between $4,000,000 and $5,000,000; and 
 75.21     (6) if the valuation exceeds $5,000,000, the surcharge is 
 75.22  $1,500 plus one-twentieth mill (.00005) of the value that 
 75.23  exceeds $5,000,000.  
 75.24     Subd. 2.  [COLLECTION AND REPORTS.] All permit surcharges 
 75.25  must be collected by each municipality and a portion of them 
 75.26  remitted to the state.  Each municipality having a population 
 75.27  greater than 20,000 people shall prepare and submit to the 
 75.28  commissioner once a month a report of fees and surcharges on 
 75.29  fees collected during the previous month but shall retain the 
 75.30  greater of two percent or that amount collected up to $25 to 
 75.31  apply against the administrative expenses the municipality 
 75.32  incurs in collecting the surcharges.  All other municipalities 
 75.33  shall submit the report and surcharges on fees once a quarter 
 75.34  but shall retain the greater of four percent or that amount 
 75.35  collected up to $25 to apply against the administrative expenses 
 75.36  the municipalities incur in collecting the surcharges.  The 
 76.1   report, which must be in a form prescribed by the commissioner, 
 76.2   must be submitted together with a remittance covering the 
 76.3   surcharges collected by the 15th day following the month or 
 76.4   quarter in which the surcharges are collected.  All surcharges 
 76.5   and other fees prescribed by sections 16B.59 to 16B.73 16B.75, 
 76.6   which are payable to the state, must be paid to the commissioner 
 76.7   who shall deposit them in the state treasury for credit to the 
 76.8   general a special revenue fund. 
 76.9      Sec. 14.  [APPROPRIATION.] 
 76.10     $1,000,000 in fiscal year 1996 and $1,000,000 in fiscal 
 76.11  year 1997 is appropriated from the special revenue fund for 
 76.12  transfer by the commissioner of finance to the general fund. 
 76.13                             ARTICLE 3 
 76.14                               ZONING 
 76.15     Section 1.  Minnesota Statutes 1994, section 366.10, is 
 76.16  amended to read: 
 76.17     366.10 [ZONING REGULATIONS.] 
 76.18     The board of supervisors may submit to the legal voters of 
 76.19  the town at an annual or special town meeting, the question 
 76.20  whether the board shall adopt building land use and zoning 
 76.21  regulations and restrictions in the town.  The board in a town 
 76.22  which has within its borders a hospital established in 
 76.23  accordance with Laws 1955, chapter 227, may submit to the voters 
 76.24  at an annual or special town meeting, the question whether the 
 76.25  board shall adopt building land use and zoning regulations and 
 76.26  restrictions in the town regulating the type of buildings that 
 76.27  may be built or occupations carried on within a radius of 
 76.28  one-half mile of the hospital. 
 76.29     Sec. 2.  Minnesota Statutes 1994, section 366.12, is 
 76.30  amended to read: 
 76.31     366.12 [REGULATIONS.] 
 76.32     If a majority of the voters voting on the question vote 
 76.33  "Yes," the town board may regulate: 
 76.34     (1) the location, height, bulk, number of stories, size of 
 76.35  buildings and other structures, 
 76.36     (2) the location of roads and schools, 
 77.1      (3) the percentage of lot which may be occupied, 
 77.2      (4) the sizes of yards and other open spaces, 
 77.3      (5) the density and distribution of population, 
 77.4      (6) the uses of buildings and structures for trade, 
 77.5   industry, residence, recreation, public activities, or other 
 77.6   purposes, and 
 77.7      (7) the uses of lands for trade, industry, residence, 
 77.8   recreation, agriculture, forestry, soil conservation, water 
 77.9   supply conservation, or other purposes. 
 77.10  To carry out this section it shall issue building land use or 
 77.11  zoning permits or approvals.  It shall be unlawful to erect, 
 77.12  establish, alter, enlarge, use, occupy, or maintain a building, 
 77.13  structure, improvement, or premises without having a building 
 77.14  land use or zoning permit or approval. 
 77.15     Before adopting a regulation under this section the board 
 77.16  shall hold a public hearing on the matter with notice as 
 77.17  provided in section 366.15.  
 77.18     This section is subject to section 366.13. 
 77.19     Sec. 3.  Minnesota Statutes 1994, section 366.16, is 
 77.20  amended to read: 
 77.21     366.16 [TOWN BUILDING ZONING COMMISSIONER.] 
 77.22     The town board may enforce the regulations by withholding 
 77.23  building land use or zoning permits or approvals, building 
 77.24  permits issued under sections 16B.59 to 16B.75, or other permits 
 77.25  or approvals.  For the purposes of sections 366.10 to 366.18, it 
 77.26  may establish the position of town building zoning commissioner 
 77.27  and fix its compensation.  If a building or structure is or is 
 77.28  proposed to be erected, constructed, reconstructed, altered, or 
 77.29  used or any land is or is proposed to be used in violation of 
 77.30  sections 366.10 to 366.18 or a regulation or provision enacted 
 77.31  or adopted by the board under sections 366.10 to 366.18, the 
 77.32  board, the attorney of the county where the town is situated, 
 77.33  the town attorney, the town building zoning commissioner, or any 
 77.34  adjacent or neighboring property owner may institute any 
 77.35  appropriate action to prevent, enjoin, abate, or remove the 
 77.36  unlawful erection, construction, reconstruction, alteration, 
 78.1   maintenance, or use.  
 78.2      Sec. 4.  Minnesota Statutes 1994, section 394.33, 
 78.3   subdivision 2, is amended to read: 
 78.4      Subd. 2.  The board of supervisors of any town which has 
 78.5   adopted or desires to adopt building and zoning regulations and 
 78.6   restrictions pursuant to law shall have the authority granted 
 78.7   the governing body of any municipality as provided in section 
 78.8   394.32. 
 78.9      Sec. 5.  Minnesota Statutes 1994, section 394.361, 
 78.10  subdivision 3, is amended to read: 
 78.11     Subd. 3.  After an official map has been adopted and filed, 
 78.12  the issuance of building land use or zoning permits or approvals 
 78.13  by the county shall be subject to the provisions of this section.
 78.14  Whenever any street or highway is widened or improved or any new 
 78.15  street is opened, or interests in lands for other public 
 78.16  purposes are acquired by the county, it is not required in such 
 78.17  proceedings to pay for any building or structure placed without 
 78.18  a permit or approval or in violation of conditions of a 
 78.19  permit or approval within the limits of the mapped street or 
 78.20  highway or outside of any building line that may have been 
 78.21  established upon the existing street or within any area thus 
 78.22  identified for public purposes.  The adoption of official maps 
 78.23  does not give the county any right, title or interest in areas 
 78.24  identified for public purposes thereon, but the adoption of a 
 78.25  map does authorize the county to acquire such interests without 
 78.26  paying compensation for buildings or structures erected in such 
 78.27  areas without a permit or approval or in violation of the 
 78.28  conditions of a permit or approval.  The provisions of this 
 78.29  subdivision shall not apply to buildings or structures in 
 78.30  existence prior to the filing of the official map.  
 78.31     Sec. 6.  Minnesota Statutes 1994, section 462.358, 
 78.32  subdivision 2a, is amended to read: 
 78.33     Subd. 2a.  [TERMS OF REGULATIONS.] The standards and 
 78.34  requirements in the regulations may address without limitation:  
 78.35  the size, location, grading, and improvement of lots, 
 78.36  structures, public areas, streets, roads, trails, walkways, 
 79.1   curbs and gutters, water supply, storm drainage, lighting, 
 79.2   sewers, electricity, gas, and other utilities; the planning and 
 79.3   design of sites; access to solar energy; and the protection and 
 79.4   conservation of flood plains, shore lands, soils, water, 
 79.5   vegetation, energy, air quality, and geologic and ecologic 
 79.6   features.  The regulations shall require that subdivisions be 
 79.7   consistent with the municipality's official map if one exists 
 79.8   and its zoning ordinance, and may require consistency with other 
 79.9   official controls and the comprehensive plan.  The regulations 
 79.10  may prohibit certain classes or kinds of subdivisions in areas 
 79.11  where prohibition is consistent with the comprehensive plan and 
 79.12  the purposes of this section, particularly the preservation of 
 79.13  agricultural lands.  The regulations may prohibit, restrict or 
 79.14  control development for the purpose of protecting and assuring 
 79.15  access to direct sunlight for solar energy systems.  The 
 79.16  regulations may prohibit, restrict, or control surface, above 
 79.17  surface, or subsurface development for the purpose of protecting 
 79.18  subsurface areas for existing or potential mined underground 
 79.19  space development pursuant to sections 469.135 to 469.141, and 
 79.20  access thereto.  The regulations may prohibit the issuance of 
 79.21  building permits or approvals for any tracts, lots, or parcels 
 79.22  for which required subdivision approval has not been obtained.  
 79.23     The regulations may permit the municipality to condition 
 79.24  its approval on the construction and installation of sewers, 
 79.25  streets, electric, gas, drainage, and water facilities, and 
 79.26  similar utilities and improvements or, in lieu thereof, on the 
 79.27  receipt by the municipality of a cash deposit, certified check, 
 79.28  irrevocable letter of credit, or bond in an amount and with 
 79.29  surety and conditions sufficient to assure the municipality that 
 79.30  the utilities and improvements will be constructed or installed 
 79.31  according to the specifications of the municipality.  Sections 
 79.32  471.345 and 574.26 do not apply to improvements made by a 
 79.33  subdivider or a subdivider's contractor. 
 79.34     The regulations may permit the municipality to condition 
 79.35  its approval on compliance with other requirements reasonably 
 79.36  related to the provisions of the regulations and to execute 
 80.1   development contracts embodying the terms and conditions of 
 80.2   approval.  The municipality may enforce such agreements and 
 80.3   conditions by appropriate legal and equitable remedies. 
 80.4      Sec. 7.  Minnesota Statutes 1994, section 462.358, 
 80.5   subdivision 9, is amended to read: 
 80.6      Subd. 9.  [UNPLATTED PARCELS.] Subdivision regulations 
 80.7   adopted by municipalities may apply to parcels which are taken 
 80.8   from existing parcels of record by metes and bounds 
 80.9   descriptions, and the governing body or building authority may 
 80.10  deny the issuance of building permits or approvals, building 
 80.11  permits issued under sections 16B.59 to 16B.75, or other permits 
 80.12  or approvals to any parcels so divided, pending compliance with 
 80.13  subdivision regulations.  
 80.14     Sec. 8.  Minnesota Statutes 1994, section 462.359, 
 80.15  subdivision 4, is amended to read: 
 80.16     Subd. 4.  [APPEALS.] If a land use or zoning permit or 
 80.17  approval for a building in such location is denied, the board of 
 80.18  appeals and adjustments shall have the power, upon appeal filed 
 80.19  with it by the owner of the land, to grant a permit or approval 
 80.20  for building in such location in any case in which the board 
 80.21  finds, upon the evidence and the arguments presented to it, (a) 
 80.22  that the entire property of the appellant of which such area 
 80.23  identified for public purposes forms a part cannot yield a 
 80.24  reasonable return to the owner unless such a permit or approval 
 80.25  is granted, and (b) that balancing the interest of the 
 80.26  municipality in preserving the integrity of the official map and 
 80.27  of the comprehensive municipal plan and the interest of the 
 80.28  owner of the property in the use of the property and in the 
 80.29  benefits of ownership, the grant of such permit or approval is 
 80.30  required by considerations of justice and equity.  In addition 
 80.31  to the notice of hearing required by section 462.354, 
 80.32  subdivision 2, a notice shall be published in the official 
 80.33  newspaper once at least ten days before the day of the hearing. 
 80.34  If the board of appeals and adjustments authorizes the issuance 
 80.35  of a permit or approval the governing body or other board or 
 80.36  commission having jurisdiction shall have six months from the 
 81.1   date of the decision of the board to institute proceedings to 
 81.2   acquire such land or interest therein, and if no such 
 81.3   proceedings are started within that time, the officer 
 81.4   responsible for issuing building permits or approvals shall 
 81.5   issue the permit or approval if the application otherwise 
 81.6   conforms to local ordinances.  The board shall specify the exact 
 81.7   location, ground area, height and other details as to the extent 
 81.8   and character of the building for which the permit or approval 
 81.9   is granted. 
 81.10                             ARTICLE 4 
 81.11                         INTERSTATE COMPACT
 81.12     Section 1.  Minnesota Statutes 1994, section 16B.75, is 
 81.13  amended to read: 
 81.14     16B.75 [INTERSTATE COMPACT ON INDUSTRIALIZED/MODULAR 
 81.15  BUILDINGS.] 
 81.16     The state of Minnesota ratifies and approves the following 
 81.17  compact: 
 81.18       INTERSTATE COMPACT ON INDUSTRIALIZED/MODULAR BUILDINGS 
 81.19                             ARTICLE I
 81.20                FINDINGS AND DECLARATIONS OF POLICY
 81.21     (1) The compacting states find that: 
 81.22     (a) Industrialized/modular buildings are constructed in 
 81.23  factories in the various states and are a growing segment of the 
 81.24  nation's affordable housing and commercial building stock. 
 81.25     (b) The regulation of industrialized/modular buildings 
 81.26  varies from state to state and locality to locality, which 
 81.27  creates confusion and burdens state and local building officials 
 81.28  and the industrialized/modular building industry. 
 81.29     (c) Regulation by multiple jurisdictions imposes additional 
 81.30  costs, which are ultimately borne by the owners and users of 
 81.31  industrialized/modular buildings, restricts market access and 
 81.32  discourages the development and incorporation of new 
 81.33  technologies. 
 81.34     (2) It is the policy of each of the compacting states to: 
 81.35     (a) Provide the states which regulate the design and 
 81.36  construction of industrialized/modular buildings with a program 
 82.1   to coordinate and uniformly adopt and administer the states' 
 82.2   rules and regulations for such buildings, all in a manner to 
 82.3   assure interstate reciprocity. 
 82.4      (b) Provide to the United States Congress assurances that 
 82.5   would preclude the need for a voluntary preemptive federal 
 82.6   regulatory system for modular housing, as outlined in Section 
 82.7   572 of the Housing and Community Development Act of 1987, 
 82.8   including development of model standards for modular housing 
 82.9   construction, such that design and performance will insure 
 82.10  quality, durability and safety; will be in accordance with 
 82.11  life-cycle cost-effective energy conservation standards; all to 
 82.12  promote the lowest total construction and operating costs over 
 82.13  the life of such housing. 
 82.14                             ARTICLE II
 82.15                            DEFINITIONS
 82.16     As used in this compact, unless the context clearly 
 82.17  requires otherwise: 
 82.18     (1) "Commission" means the interstate 
 82.19  industrialized/modular buildings commission. 
 82.20     (2) "Industrialized/modular building" means any building 
 82.21  which is of closed construction, i.e. constructed in such a 
 82.22  manner that concealed parts or processes of manufacture cannot 
 82.23  be inspected at the site, without disassembly, damage or 
 82.24  destruction, and which is made or assembled in manufacturing 
 82.25  facilities, off the building site, for installation, or assembly 
 82.26  and installation, on the building site.  "Industrialized/modular 
 82.27  building" includes, but is not limited to, modular housing which 
 82.28  is factory-built single-family and multifamily housing 
 82.29  (including closed wall panelized housing) and other modular, 
 82.30  nonresidential buildings.  "Industrialized/modular building" 
 82.31  does not include any structure subject to the requirements of 
 82.32  the National Manufactured Home Construction and Safety Standards 
 82.33  Act of 1974. 
 82.34     (3) "Interim reciprocal agreement" means a formal 
 82.35  reciprocity agreement between a noncompacting state wherein the 
 82.36  noncompacting state agrees that labels evidencing compliance 
 83.1   with the model rules and regulations for industrialized/modular 
 83.2   buildings, as authorized in Article VIII, section (9), shall be 
 83.3   accepted by the state and its subdivisions to permit 
 83.4   installation and use of industrialized/modular buildings.  
 83.5   Further, the noncompacting state agrees that by legislation or 
 83.6   regulation, and appropriate enforcement by uniform 
 83.7   administrative procedures, the noncompacting state requires all 
 83.8   industrialized/modular building manufacturers within that state 
 83.9   to comply with the model rules and regulations for 
 83.10  industrialized/modular buildings. 
 83.11     (4) "State" means a state of the United States, territory 
 83.12  or possession of the United States, the District of Columbia, or 
 83.13  the Commonwealth of Puerto Rico. 
 83.14     (5) "Uniform administrative procedures" means the 
 83.15  procedures adopted by the commission (after consideration of any 
 83.16  recommendations from the rules development committee) which 
 83.17  state and local officials, and other parties, in one state, will 
 83.18  utilize to assure state and local officials, and other parties, 
 83.19  in other states, of the substantial compliance of 
 83.20  industrialized/modular building construction with the 
 83.21  construction standard of requirements of such other states; to 
 83.22  assess the adequacy of building systems; and to verify and 
 83.23  assure the competency and performance of evaluation and 
 83.24  inspection agencies. 
 83.25     (6) "Model rules and regulations for industrialized/modular 
 83.26  buildings" means the construction standards adopted by the 
 83.27  commission (after consideration of any recommendations from the 
 83.28  rules development committee) which govern the design, 
 83.29  manufacture, handling, storage, delivery and installation of 
 83.30  industrialized/modular buildings and building components.  The 
 83.31  construction standards and any amendments thereof shall conform 
 83.32  insofar as practicable to model building codes and referenced 
 83.33  standards generally accepted and in use throughout the United 
 83.34  States. 
 83.35                            ARTICLE III
 83.36                       CREATION OF COMMISSION 
 84.1      The compacting states hereby create the Interstate 
 84.2   Industrialized/Modular Buildings Commission, hereinafter called 
 84.3   commission.  Said commission shall be a body corporate of each 
 84.4   compacting state and an agency thereof.  The commission shall 
 84.5   have all the powers and duties set forth herein and such 
 84.6   additional powers as may be conferred upon it by subsequent 
 84.7   action of the respective legislatures of the compacting states. 
 84.8                              ARTICLE IV
 84.9                      SELECTION OF COMMISSIONERS
 84.10     The commission shall be selected as follows.  As each state 
 84.11  becomes a compacting state, one resident shall be appointed as 
 84.12  commissioner.  The commissioner shall be selected by the 
 84.13  governor of the compacting state, being designated from the 
 84.14  state agency charged with regulating industrialized/modular 
 84.15  buildings or, if such state agency does not exist, being 
 84.16  designated from among those building officials with the most 
 84.17  appropriate responsibilities in the state.  The commissioner may 
 84.18  designate another official as an alternate to act on behalf of 
 84.19  the commissioner at commission meetings which the commissioner 
 84.20  is unable to attend. 
 84.21     Each state commissioner shall be appointed, suspended, or 
 84.22  removed and shall serve subject to and in accordance with the 
 84.23  laws of the state which said commissioner represents; and each 
 84.24  vacancy occurring shall be filled in accordance with the laws of 
 84.25  the state wherein the vacancy exists. 
 84.26     When For every three state commissioners that have been 
 84.27  appointed in the manner described, those state commissioners 
 84.28  shall select one additional commissioner who shall be a 
 84.29  representative of manufacturers of industrial- residential- or 
 84.30  commercial-use industrialized/modular buildings.  When For every 
 84.31  six state commissioners that have been appointed in the manner 
 84.32  described, the state commissioners shall select a second one 
 84.33  additional commissioner who shall be a representative of 
 84.34  consumers of industrialized/modular buildings.  With each 
 84.35  addition of three state commissioners, the state commissioners 
 84.36  shall appoint one additional representative commissioner, 
 85.1   alternating between a representative of manufacturers of 
 85.2   industrialized/modular buildings and consumers of 
 85.3   industrialized/modular buildings.  The ratio between state 
 85.4   commissioners and representative commissioners shall be three to 
 85.5   one.  In the event states withdraw from the compact or, for any 
 85.6   other reason, the number of state commissioners is reduced, the 
 85.7   state commissioners shall remove the last added representative 
 85.8   commissioner as necessary to maintain a the ratio of state 
 85.9   commissioners to representative commissioners of three to 
 85.10  one described herein. 
 85.11     Upon a majority vote of the state commissioners, the state 
 85.12  commissioners may remove, fill a vacancy created by, or replace 
 85.13  any representative commissioner, provided that any replacement 
 85.14  is made from the same representative group and a three to one 
 85.15  ratio the ratio described herein is maintained.  Unless provided 
 85.16  otherwise, the representative commissioners have the same 
 85.17  authority and responsibility as the state commissioners. 
 85.18     In addition, the commission may have as a member one 
 85.19  commissioner representing the United States government if 
 85.20  federal law authorizes such representation.  Such commissioner 
 85.21  shall not vote on matters before the commission.  Such 
 85.22  commission commissioner shall be appointed by the President of 
 85.23  the United States, or in such other manner as may be provided by 
 85.24  Congress. 
 85.25                             ARTICLE V
 85.26                               VOTING
 85.27     Each commissioner (except the commissioner representing the 
 85.28  United States government) shall be entitled to one vote on the 
 85.29  commission.  A majority of the commissioners shall constitute a 
 85.30  quorum for the transaction of business.  Any business transacted 
 85.31  at any meeting of the commission must be by affirmative vote of 
 85.32  a majority of the quorum present and voting. 
 85.33                             ARTICLE VI
 85.34                    ORGANIZATION AND MANAGEMENT
 85.35     The commission shall elect annually, from among its 
 85.36  members, a chairman, a vice chairman and a treasurer.  The 
 86.1   commission shall also select a secretariat, which shall provide 
 86.2   an individual who shall serve as secretary of the commission. 
 86.3   The commission shall fix and determine the duties and 
 86.4   compensation of the secretariat.  The commissioners shall serve 
 86.5   without compensation, but shall be reimbursed for their actual 
 86.6   and necessary expenses from the funds of the commission. 
 86.7      The commission shall adopt a seal. 
 86.8      The commission shall adopt bylaws, rules, and regulations 
 86.9   for the conduct of its business, and shall have the power to 
 86.10  amend and rescind these bylaws, rules, and regulations. 
 86.11     The commission shall establish and maintain an office at 
 86.12  the same location as the office maintained by the secretariat 
 86.13  for the transaction of its business and may meet at any time, 
 86.14  but in any event must meet at least once a year.  The chairman 
 86.15  may call additional meetings and upon the request of a majority 
 86.16  of the commissioners of three or more of the compacting states 
 86.17  shall call an additional meeting.  
 86.18     The commission annually shall make the governor and 
 86.19  legislature of each compacting state a report covering its 
 86.20  activities for the preceding year.  Any donation or grant 
 86.21  accepted by the commission or services borrowed shall be 
 86.22  reported in the annual report of the commission and shall 
 86.23  include the nature, amount and conditions, if any, of the 
 86.24  donation, gift, grant or services borrowed and the identity of 
 86.25  the donor or lender.  The commission may make additional reports 
 86.26  as it may deem desirable. 
 86.27                            ARTICLE VII
 86.28                             COMMITTEES
 86.29     The commission will establish such committees as it deems 
 86.30  necessary, including, but not limited to, the following: 
 86.31     (1) An executive committee which functions when the full 
 86.32  commission is not meeting, as provided in the bylaws of the 
 86.33  commission.  The executive committee will ensure that proper 
 86.34  procedures are followed in implementing the commission's 
 86.35  programs and in carrying out the activities of the compact.  The 
 86.36  executive committee shall be elected by vote of the commission.  
 87.1   It shall be comprised of at least three and no more than nine 
 87.2   commissioners, selected from those commissioners who are 
 87.3   representatives of the governor of their respective state the 
 87.4   state commissioners and one member of the industry commissioners 
 87.5   and one member of the consumer commissioners. 
 87.6      (2) A rules development committee appointed by the 
 87.7   commission.  The committee shall be consensus-based and consist 
 87.8   of not less than seven nor more than 21 members.  Committee 
 87.9   members will include state building regulatory officials; 
 87.10  manufacturers of industrialized/modular buildings; private, 
 87.11  third-party inspection agencies; and consumers.  This committee 
 87.12  may recommend procedures which state and local officials, and 
 87.13  other parties, in one state, may utilize to assure state and 
 87.14  local officials, and other parties, in other states, of the 
 87.15  substantial compliance of industrialized/modular building 
 87.16  construction with the construction standard requirements of such 
 87.17  other states; to assess the adequacy of building systems; and to 
 87.18  verify and assure the competency and performance of evaluation 
 87.19  and inspection agencies.  This committee may also recommend 
 87.20  construction standards for the design, manufacture, handling, 
 87.21  storage, delivery and installation of industrialized/modular 
 87.22  buildings and building components.  The committee will submit 
 87.23  its recommendations to the commission, for the commission's 
 87.24  consideration in adopting and amending the uniform 
 87.25  administrative procedures and the model rules and regulations 
 87.26  for industrialized/modular buildings.  The committee may also 
 87.27  review the regulatory programs of the compacting states to 
 87.28  determine whether those programs are consistent with the uniform 
 87.29  administrative procedures or the model rules and regulations for 
 87.30  industrialized/modular buildings and may make recommendations 
 87.31  concerning the states' programs to the commission.  In carrying 
 87.32  out its functions, the rules committee may conduct public 
 87.33  hearings and otherwise solicit public input and comment. 
 87.34     (3) Any other advisory, coordinating or technical 
 87.35  committees, membership on which may include private persons, 
 87.36  public officials, associations or organizations.  Such 
 88.1   committees may consider any matter of concern to the commission. 
 88.2      (4) Such additional committees as the commission's bylaws 
 88.3   may provide. 
 88.4                             ARTICLE VIII
 88.5                         POWER AND AUTHORITY
 88.6      In addition to the powers conferred elsewhere in this 
 88.7   compact, the commission shall have power to: 
 88.8      (1) Collect, analyze and disseminate information relating 
 88.9   to industrialized/modular buildings. 
 88.10     (2) Undertake studies of existing laws, codes, rules and 
 88.11  regulations, and administrative practices of the states relating 
 88.12  to industrialized/modular buildings. 
 88.13     (3) Assist and support committees and organizations which 
 88.14  promulgate, maintain and update model codes or recommendations 
 88.15  for uniform administrative procedures or model rules and 
 88.16  regulations for industrialized/modular buildings. 
 88.17     (4) Adopt and amend uniform administrative procedures and 
 88.18  model rules and regulations for industrialized/modular buildings.
 88.19     (5) Make recommendations to compacting states for the 
 88.20  purpose of bringing such states' laws, codes, rules and 
 88.21  regulations and administrative practices into conformance with 
 88.22  the uniform administrative procedures or the model rules and 
 88.23  regulations for industrialized/modular buildings, provided that 
 88.24  such recommendations shall be made to the appropriate state 
 88.25  agency with due consideration for the desirability of uniformity 
 88.26  while also giving appropriate consideration to special 
 88.27  circumstances which may justify variations necessary to meet 
 88.28  unique local conditions. 
 88.29     (6) Assist and support the compacting states with 
 88.30  monitoring of plan review programs and inspection programs, 
 88.31  which will assure that the compacting states have the benefit of 
 88.32  uniform industrialized/modular building plan review and 
 88.33  inspection programs. 
 88.34     (7) Assist and support organizations which train state and 
 88.35  local government and other program personnel in the use of 
 88.36  uniform industrialized/modular building plan review and 
 89.1   inspection programs. 
 89.2      (8) Encourage and promote coordination of state regulatory 
 89.3   action relating to manufacturers, public or private inspection 
 89.4   programs. 
 89.5      (9) Create and sell labels to be affixed to 
 89.6   industrialized/modular building units, constructed in or 
 89.7   regulated by compacting states, where such labels will evidence 
 89.8   compliance with the model rules and regulations for 
 89.9   industrialized/modular buildings, enforced in accordance with 
 89.10  the uniform administrative procedures.  The commission may use 
 89.11  receipts from the sale of labels to help defray the operating 
 89.12  expenses of the commission. 
 89.13     (10) Assist and support compacting states' investigations 
 89.14  into and resolutions of consumer complaints which relate to 
 89.15  industrialized/modular buildings constructed in one compacting 
 89.16  state and sited in another compacting state. 
 89.17     (11) Borrow, accept or contract for the services of 
 89.18  personnel from any state or the United States or any subdivision 
 89.19  or agency thereof, from any interstate agency, or from any 
 89.20  institution, association, person, firm or corporation. 
 89.21     (12) Accept for any of its purposes and functions under 
 89.22  this compact any and all donations, and grants of money, 
 89.23  equipment, supplies, materials and services (conditional or 
 89.24  otherwise) from any state or the United States or any 
 89.25  subdivision or agency thereof, from any interstate agency, or 
 89.26  from any institution, person, firm or corporation, and may 
 89.27  receive, utilize and dispose of the same. 
 89.28     (13) Establish and maintain such facilities as may be 
 89.29  necessary for the transacting of its business.  The commission 
 89.30  may acquire, hold, and convey real and personal property and any 
 89.31  interest therein. 
 89.32     (14) Enter into contracts and agreements, including but not 
 89.33  limited to, interim reciprocal agreements with noncompacting 
 89.34  states. 
 89.35                             ARTICLE IX
 89.36                              FINANCE
 90.1      The commission shall submit to the governor or designated 
 90.2   officer or officers of each compacting state a budget of its 
 90.3   estimated expenditures for such period as may be required by the 
 90.4   laws of that state for presentation to the legislature thereof. 
 90.5      Each of the commission's budgets of estimated expenditures 
 90.6   shall contain specific recommendations of the amounts to be 
 90.7   appropriated by each of the compacting states.  The total amount 
 90.8   of appropriations requested under any such budget shall be 
 90.9   apportioned among the compacting states as follows:  one-half in 
 90.10  equal shares; one-fourth among the compacting states in 
 90.11  accordance with the ratio of their populations to the total 
 90.12  population of the compacting states, based on the last decimal 
 90.13  federal census; and one-fourth among the compacting states in 
 90.14  accordance with the ratio of industrialized/modular building 
 90.15  units manufactured in each state to the total of all units 
 90.16  manufactured in all of the compacting states. 
 90.17     The commission shall not pledge the credit of any 
 90.18  compacting state.  The commission may meet any of its 
 90.19  obligations in whole or in part with funds available to it by 
 90.20  donations, grants, or sale of labels:  provided that the 
 90.21  commission takes specific action setting aside such funds prior 
 90.22  to incurring any obligation to be met in whole or in part in 
 90.23  such manner.  Except where the commission makes use of funds 
 90.24  available to it by donations, grants or sale of labels, the 
 90.25  commission shall not incur any obligation prior to the allotment 
 90.26  of funds by the compacting states adequate to meet the same. 
 90.27     The commission shall keep accurate accounts of all receipts 
 90.28  and disbursements.  The receipts and disbursements of the 
 90.29  commission shall be subject to the audit and accounting 
 90.30  procedures established under its bylaws.  All receipts and 
 90.31  disbursements of funds handled by the commission shall be 
 90.32  audited yearly by a certified or licensed public accountant and 
 90.33  the report of the audit shall be included in and become part of 
 90.34  the annual report of the commission. 
 90.35     The accounts of the commission shall be open at any 
 90.36  reasonable time for inspection by duly constituted officers of 
 91.1   the compacting states and any person authorized by the 
 91.2   commission. 
 91.3      Nothing contained in this article shall be construed to 
 91.4   prevent commission compliance relating to audit or inspection of 
 91.5   accounts by or on behalf of any government contributing to the 
 91.6   support of the commission. 
 91.7                              ARTICLE X
 91.8                   ENTRY INTO FORCE AND WITHDRAWAL 
 91.9      This compact shall enter into force when enacted into law 
 91.10  by any three states.  Thereafter, this compact shall become 
 91.11  effective as to any other state upon its enactment thereof.  The 
 91.12  commission shall arrange for notification of all compacting 
 91.13  states whenever there is a new enactment of the compact. 
 91.14     Any compacting state may withdraw from this compact by 
 91.15  enacting a statute repealing the same.  No withdrawal shall 
 91.16  affect any liability already incurred by or chargeable to a 
 91.17  compacting state prior to the time of such withdrawal. 
 91.18                             ARTICLE XI
 91.19                            RECIPROCITY 
 91.20     If the commission determines that the standards for 
 91.21  industrialized/modular buildings prescribed by statute, rule or 
 91.22  regulation of compacting state are at least equal to the 
 91.23  commission's model rules and regulations for 
 91.24  industrialized/modular buildings, and that such state standards 
 91.25  are enforced by the compacting state in accordance with the 
 91.26  uniform administrative procedures, industrialized/modular 
 91.27  buildings approved by such a compacting state shall be deemed to 
 91.28  have been approved by all the compacting states for placement in 
 91.29  those states in accordance with procedures prescribed by the 
 91.30  commission. 
 91.31                            ARTICLE XII
 91.32               EFFECT ON OTHER LAWS AND JURISDICTION 
 91.33     Nothing in this compact shall be construed to: 
 91.34     (1) Withdraw or limit the jurisdiction of any state or 
 91.35  local court or administrative officer or body with respect to 
 91.36  any person, corporation or other entity or subject matter, 
 92.1   except to the extent that such jurisdiction pursuant to this 
 92.2   compact, is expressly conferred upon another agency or body. 
 92.3      (2) Supersede or limit the jurisdiction of any court of the 
 92.4   United States. 
 92.5                             ARTICLE XIII 
 92.6                    CONSTRUCTION AND SEVERABILITY 
 92.7      This compact shall be liberally construed so as to 
 92.8   effectuate the purposes thereof.  The provisions of this compact 
 92.9   shall be severable and if any phrase, clause, sentence or 
 92.10  provision of this compact is declared to be contrary to the 
 92.11  constitution of any state or of the United States or the 
 92.12  applicability thereof to any government, agency, person or 
 92.13  circumstances is held invalid, the validity of the remainder of 
 92.14  this compact and the applicability thereof to any government, 
 92.15  agency, person or circumstance shall not be affected thereby.  
 92.16  If this compact shall be held contrary to the constitution of 
 92.17  any state participating therein, the compact shall remain in 
 92.18  full force and effect as to the remaining party states and in 
 92.19  full force and effect as to the state affected as to all 
 92.20  severable matters. 
 92.21                             ARTICLE 5 
 92.22                          DEBT COLLECTION 
 92.23     Section 1.  Minnesota Statutes 1994, section 8.16, is 
 92.24  amended by adding a subdivision to read: 
 92.25     Subd. 1a.  [SUBPOENAS.] The attorney general may in any 
 92.26  county of the state subpoena and require the production of any 
 92.27  records relating to the location of a debtor or the assets of a 
 92.28  debtor, as that term is defined in section 16D.02, subdivision 
 92.29  4.  Subpoenas may be issued only for records that are relevant 
 92.30  to an investigation related to debt collection and exclude the 
 92.31  power to subpoena personal appearance of witnesses unless the 
 92.32  attorney general is so authorized by other statute or court rule.
 92.33     Sec. 2.  Minnesota Statutes 1994, section 16A.72, is 
 92.34  amended to read: 
 92.35     16A.72 [INCOME CREDITED TO GENERAL FUND; EXCEPTIONS.] 
 92.36     All income, including fees or receipts of any nature, shall 
 93.1   be credited to the general fund, except:  
 93.2      (1) federal aid; 
 93.3      (2) contributions, or reimbursements received for any 
 93.4   account of any division or department for which an appropriation 
 93.5   is made by law; 
 93.6      (3) income to the University of Minnesota; 
 93.7      (4) income to revolving funds now established in 
 93.8   institutions under the control of the commissioners of 
 93.9   corrections or human services; 
 93.10     (5) investment earnings resulting from the master lease 
 93.11  program, except that the amount credited to another fund or 
 93.12  account may not exceed the amount of the additional expense 
 93.13  incurred by that fund or account through participation in the 
 93.14  master lease program; 
 93.15     (6) receipts from the operation of patients' and inmates' 
 93.16  stores and vending machines, which shall be deposited in the 
 93.17  social welfare fund in each institution for the benefit of the 
 93.18  patients and inmates; 
 93.19     (7) money received in payment for services of inmate labor 
 93.20  employed in the industries carried on in the state correctional 
 93.21  facilities which receipts shall be credited to the current 
 93.22  expense fund of those facilities; 
 93.23     (8) as provided in sections 16B.57 and 85.22; 
 93.24     (9) income to the Minnesota historical society; or 
 93.25     (10) the percent of income collected by a private 
 93.26  collection agency and retained by the collection agency as its 
 93.27  collection fee; or 
 93.28     (11) as otherwise provided by law. 
 93.29     Sec. 3.  Minnesota Statutes 1994, section 16D.02, 
 93.30  subdivision 6, is amended to read: 
 93.31     Subd. 6.  [REFERRING AGENCY.] "Referring agency" means a 
 93.32  state agency, the University of Minnesota, or a court that has 
 93.33  entered into a debt qualification plan with the commissioner to 
 93.34  refer debts to the commissioner for collection. 
 93.35     Sec. 4.  Minnesota Statutes 1994, section 16D.02, is 
 93.36  amended by adding a subdivision to read: 
 94.1      Subd. 8.  [ENTERPRISE.] "Enterprise" means the Minnesota 
 94.2   collection enterprise, a separate unit established to carry out 
 94.3   the provisions of this chapter, pursuant to the commissioner's 
 94.4   authority to contract with the commissioner of revenue for 
 94.5   collection services under section 16D.04, subdivision 1. 
 94.6      Sec. 5.  Minnesota Statutes 1994, section 16D.04, 
 94.7   subdivision 1, is amended to read: 
 94.8      Subdivision 1.  [DUTIES.] The commissioner shall provide 
 94.9   services to the state and its agencies to collect debts owed the 
 94.10  state.  The commissioner is not a collection agency as defined 
 94.11  by section 332.31, subdivision 3, and is not licensed, bonded, 
 94.12  or regulated by the commissioner of commerce under sections 
 94.13  332.31 to 332.35 or 332.38 to 332.45.  The commissioner is 
 94.14  subject to section 332.37, except clause (9) or (10).  The 
 94.15  commissioner may contract with the commissioner of revenue for 
 94.16  collection services, and may delegate to the commissioner of 
 94.17  revenue any of the commissioner's duties and powers under this 
 94.18  chapter.  Debts referred to the commissioner of revenue for 
 94.19  collection under this section or section 256.9792 may in turn be 
 94.20  referred by the commissioner of revenue to the enterprise.  An 
 94.21  audited financial statement may not be required as a condition 
 94.22  of debt placement with a private agency if the private agency:  
 94.23  (1) has errors and omissions coverage under a professional 
 94.24  liability policy in an amount of at least $1,000,000; or (2) has 
 94.25  a fidelity bond to cover actions of its employees, in an amount 
 94.26  of at least $100,000.  In cases of debts referred under section 
 94.27  256.9792, the provisions of this chapter and section 256.9792 
 94.28  apply to the extent they are not in conflict.  If they are in 
 94.29  conflict, the provisions of section 256.9792 control.  For 
 94.30  purposes of this chapter, the referring agency for such debts 
 94.31  remains the department of human services. 
 94.32     Sec. 6.  Minnesota Statutes 1994, section 16D.04, 
 94.33  subdivision 3, is amended to read: 
 94.34     Subd. 3.  [SERVICES.] The commissioner shall provide 
 94.35  collection services for a state agency, and may provide for 
 94.36  collection services for the University of Minnesota or a court, 
 95.1   in accordance with the terms and conditions of a signed debt 
 95.2   qualification plan.  
 95.3      Sec. 7.  Minnesota Statutes 1994, section 16D.06, is 
 95.4   amended to read: 
 95.5      16D.06 [DEBTOR INFORMATION.] 
 95.6      Subdivision 1.  [ACCESS TO GOVERNMENT DATA NOT PUBLIC.] 
 95.7   Notwithstanding chapter 13 or any other state law classifying or 
 95.8   restricting access to government data, upon request from the 
 95.9   commissioner or the attorney general, state agencies, political 
 95.10  subdivisions, and statewide systems shall disseminate not public 
 95.11  data to the commissioner or the attorney general for the sole 
 95.12  purpose of collecting debt.  Not public data disseminated under 
 95.13  this subdivision is limited to financial data of the debtor or 
 95.14  data related to the location of the debtor or the assets of the 
 95.15  debtor. 
 95.16     Subd. 2.  [DISCLOSURE OF DATA.] Data received, collected, 
 95.17  created, or maintained by the commissioner or the attorney 
 95.18  general to collect debts are classified as private data on 
 95.19  individuals under section 13.02, subdivision 12, or nonpublic 
 95.20  data under section 13.02, subdivision 9.  The commissioner or 
 95.21  the attorney general may disclose not public data: 
 95.22     (1) under section 13.05; 
 95.23     (2) under court order; 
 95.24     (3) under a statute specifically authorizing access to the 
 95.25  not public data; 
 95.26     (4) to provide notices required or permitted by statute; 
 95.27     (5) to an agent of the commissioner, including a law 
 95.28  enforcement person, attorney, or investigator acting for the 
 95.29  commissioner in the investigation or prosecution of a criminal 
 95.30  or civil proceeding relating to collection of a debt; 
 95.31     (6) to report names of debtors, amount of debt, date of 
 95.32  debt, and the agency to whom debt is owed to credit bureaus and 
 95.33  private collection agencies under contract with the 
 95.34  commissioner; and 
 95.35     (7) when necessary to locate the debtor, locate the assets 
 95.36  of the debtor, or to enforce or implement the collection of a 
 96.1   debt; and 
 96.2      (8) to the commissioner of revenue for tax administration 
 96.3   purposes. 
 96.4      The commissioner and the attorney general may not disclose 
 96.5   data that is not public to a private collection agency or other 
 96.6   entity with whom the commissioner has contracted under section 
 96.7   16D.04, subdivision 4, unless disclosure is otherwise authorized 
 96.8   by law. 
 96.9      Sec. 8.  Minnesota Statutes 1994, section 16D.08, 
 96.10  subdivision 2, is amended to read: 
 96.11     Subd. 2.  [POWERS.] In addition to the collection remedies 
 96.12  available to private collection agencies in this state, the 
 96.13  commissioner, with legal assistance from the attorney general, 
 96.14  may utilize any statutory authority granted to a referring 
 96.15  agency for purposes of collecting debt owed to that referring 
 96.16  agency.  The commissioner may also use the tax collection 
 96.17  remedies of the commissioner of revenue in sections 270.06, 
 96.18  clauses (7) and (17), excluding the power to subpoena witnesses; 
 96.19  270.66; 270.69, excluding subdivisions 7 and 13; 270.70, 
 96.20  excluding subdivision 14; 270.7001 to 270.72; and 290.92, 
 96.21  subdivision 23, except that a continuous wage levy under section 
 96.22  290.92, subdivision 23, is only effective for 70 days, unless no 
 96.23  competing wage garnishments, executions, or levies are served 
 96.24  within the 70-day period, in which case a wage levy is 
 96.25  continuous until a competing garnishment, execution, or levy is 
 96.26  served in the second or a succeeding 70-day period, in which 
 96.27  case a continuous wage levy is effective for the remainder of 
 96.28  that period.  A debtor who qualifies for cancellation of the 
 96.29  collection penalty under section 16D.11, subdivision 3, clause 
 96.30  (1), can apply to the commissioner for reduction or release of a 
 96.31  continuous wage levy, if the debtor establishes that the debtor 
 96.32  needs all or a portion of the wages being levied upon to pay for 
 96.33  essential living expenses, such as food, clothing, shelter, 
 96.34  medical care, or expenses necessary for maintaining employment.  
 96.35  The commissioner's determination not to reduce or release a 
 96.36  continuous wage levy is appealable to district court.  The word 
 97.1   "tax" or "taxes" when used in the tax collection statutes listed 
 97.2   in this subdivision also means debts referred under this 
 97.3   chapter.  For debts other than state taxes or child support, 
 97.4   before any of the tax collection remedies listed in this 
 97.5   subdivision can be used, except for the remedies in section 
 97.6   270.06, clauses (7) and (17), if the referring agency has not 
 97.7   already obtained a judgment or filed a lien, the commissioner 
 97.8   must first obtain a judgment against the debtor.  
 97.9      Sec. 9.  [16D.11] [COLLECTION PENALTY.] 
 97.10     Subdivision 1.  [IMPOSITION.] As determined by the 
 97.11  commissioner, a penalty shall be added to the debts referred to 
 97.12  the commissioner or private collection agency for collection.  
 97.13  The penalty is collectible by the commissioner or private agency 
 97.14  from the debtor at the same time and in the same manner as the 
 97.15  referred debt.  The referring agency shall advise the debtor of 
 97.16  the penalty under this section and the debtor's right to 
 97.17  cancellation of the penalty under subdivision 3 at the time the 
 97.18  agency sends notice to the debtor under section 16D.07.  If the 
 97.19  commissioner or private agency collects an amount less than the 
 97.20  total due, the payment is applied proportionally to the penalty 
 97.21  and the underlying debt.  Penalties collected by the 
 97.22  commissioner under this subdivision or retained under 
 97.23  subdivision 6 shall be deposited in the general fund as 
 97.24  nondedicated receipts.  Penalties collected by private agencies 
 97.25  are appropriated to the referring agency to pay the collection 
 97.26  fees charged by the private agency.  Penalty collections in 
 97.27  excess of collection agency fees must be deposited in the 
 97.28  general fund as nondedicated receipts.  
 97.29     Subd. 2.  [COMPUTATION.] Beginning July 1, 1995, at the 
 97.30  time a debt is referred, the amount of the penalty is equal to 
 97.31  15 percent of the debt, or 25 percent of the debt remaining 
 97.32  unpaid if the commissioner or private collection agency has to 
 97.33  take enforced collection action by serving a summons and 
 97.34  complaint on or entering judgment against the debtor, or by 
 97.35  utilizing any of the remedies authorized under section 16D.08, 
 97.36  subdivision 2, except for the remedies in sections 270.06, 
 98.1   clause (7), and 270.66 or when referred by the commissioner for 
 98.2   additional collection activity by a private collection agency.  
 98.3   If, after referral of a debt to a private collection agency, the 
 98.4   debtor requests cancellation of the penalty under subdivision 3, 
 98.5   the debt must be returned to the commissioner for resolution of 
 98.6   the request. 
 98.7      Subd. 3.  [CANCELLATION.] The penalty imposed under 
 98.8   subdivision 1 shall be canceled and subtracted from the amount 
 98.9   due if: 
 98.10     (1) the debtor's household income as defined in section 
 98.11  290A.03, subdivision 5, excluding the exemption subtractions in 
 98.12  subdivision 3, paragraph (3) of that section, for the 12 months 
 98.13  preceding the date of referral is less than twice the annual 
 98.14  federal poverty guideline under United States Code, title 42, 
 98.15  section 9902, subsection (2); 
 98.16     (2) within 60 days after the first contact with the debtor 
 98.17  by the enterprise or collection agency, the debtor establishes 
 98.18  reasonable cause for the failure to pay the debt prior to 
 98.19  referral of the debt to the enterprise; 
 98.20     (3) a good faith dispute as to the legitimacy or the amount 
 98.21  of the debt is made, and payment is remitted or a payment 
 98.22  agreement is entered into within 30 days after resolution of the 
 98.23  dispute; 
 98.24     (4) good faith litigation occurs and the debtor's position 
 98.25  is substantially justified, and if the debtor does not totally 
 98.26  prevail, the debt is paid or a payment agreement is entered into 
 98.27  within 30 days after the judgment becomes final and 
 98.28  nonappealable; or 
 98.29     (5) penalties have been added by the referring agency and 
 98.30  are included in the amount of the referred debt. 
 98.31     Subd. 4.  [APPEAL.] Decisions of the commissioner denying 
 98.32  an application to cancel the penalty under subdivision 3 are 
 98.33  subject to the contested case procedure under chapter 14. 
 98.34     Subd. 5.  [REFUND.] If a penalty is collected and then 
 98.35  canceled, the amount of the penalty shall be refunded to the 
 98.36  debtor within 30 days.  The amount necessary to pay the refunds 
 99.1   is annually appropriated to the commissioner. 
 99.2      Subd. 6.  [CHARGE TO REFERRING AGENCY.] If the penalty is 
 99.3   canceled under subdivision 3, an amount equal to the penalty is 
 99.4   retained by the commissioner from the debt collected, and is 
 99.5   accounted for and subject to the same provisions of this chapter 
 99.6   as if the penalty had been collected from the debtor. 
 99.7      Subd. 7.  [ADJUSTMENT OF RATE.] By June 1 of each year, the 
 99.8   commissioner shall determine the rate of the penalty for debts 
 99.9   referred to the enterprise during the next fiscal year.  The 
 99.10  rate is a percentage of the debts in an amount that most nearly 
 99.11  equals the costs of the enterprise necessary to process and 
 99.12  collect referred debts under this chapter.  In no event shall 
 99.13  the rate of the penalty when a debt is first referred exceed 
 99.14  three-fifths of the maximum penalty, and in no event shall the 
 99.15  rate of the maximum penalty exceed 25 percent of the debt.  
 99.16  Determination of the rate of the penalty under this section is 
 99.17  not rulemaking under chapter 14, and is not subject to the fee 
 99.18  setting requirements of section 16A.1285. 
 99.19     Sec. 10.  [16D.12] [PAYMENT OF COLLECTION AGENCY FEES.] 
 99.20     Unless otherwise expressly prohibited by law, a state 
 99.21  agency may pay for the services of a state or private collection 
 99.22  agency from the money collected.  The portion of the money 
 99.23  collected which must be paid to the collection agency as its 
 99.24  collection fee is appropriated from the fund to which the 
 99.25  collected money is due. 
 99.26     Sec. 11.  [16D.13] [INTEREST.] 
 99.27     Subdivision 1.  [AUTHORITY.] Unless otherwise provided by 
 99.28  contract out of which the debt arises or by state or federal 
 99.29  law, a state agency shall charge simple interest on debts owed 
 99.30  to the state at the rate provided in subdivision 2 if notice has 
 99.31  been given in accordance with this subdivision.  Interest 
 99.32  charged under this section begins to accrue on the 30th calendar 
 99.33  day following the state agency's first written demand for 
 99.34  payment that includes notification to the debtor that interest 
 99.35  will begin to accrue on the debt in accordance with this section.
 99.36     Subd. 2.  [COMPUTATION.] Notwithstanding chapter 334, the