1.1                          A bill for an act
  1.2             relating to state government; changing the appointing 
  1.3             authority for certain members of the Minnesota state 
  1.4             high school league governing board; providing that the 
  1.5             league is subject to certain procedures; amending 
  1.6             Minnesota Statutes 1996, sections 128C.01, subdivision 
  1.7             4, and by adding a subdivision; 128C.02, by adding 
  1.8             subdivisions; and 128C.12, subdivision 1; proposing 
  1.9             coding for new law in Minnesota Statutes, chapter 128C.
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 128C.01, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 1a.  [LEGISLATIVE FINDINGS.] The legislature finds 
  1.14  that the Minnesota state high school league is not a state 
  1.15  agency, but that the league does derive its authority primarily 
  1.16  from school districts, which are governmental entities.  The 
  1.17  league acts in a manner similar to governmental entities, in 
  1.18  that its rules and case-by-case adjudications control students' 
  1.19  ability to participate in activities sponsored by governmental 
  1.20  entities.  Because of the governmental powers that the league 
  1.21  exercises and the public funds the league controls, the 
  1.22  legislature finds that the league should be subject to certain 
  1.23  laws that apply to governmental entities. 
  1.24     Sec. 2.  Minnesota Statutes 1996, section 128C.01, 
  1.25  subdivision 4, is amended to read: 
  1.26     Subd. 4.  [BOARD.] (a) The league must have a 20-member 
  1.27  22-member governing board. 
  2.1      (1) The governor must appoint four members according to 
  2.2   section 15.0597.  Each of the four appointees must be a parent.  
  2.3   At least one of them must be an American Indian, an Asian, a 
  2.4   Black, or a Hispanic. 
  2.5      (2) The Minnesota association of secondary school 
  2.6   principals must appoint two of its members. 
  2.7      (3) The remaining 14 members must be selected according to 
  2.8   league bylaws. appointed by the governor according to section 
  2.9   15.0597, as follows: 
  2.10     (1) four parents; 
  2.11     (2) four representatives of class A schools; 
  2.12     (3) four representatives of class AA schools; 
  2.13     (4) two representatives of secondary school principals, one 
  2.14  from a class A school and one from a class AA school; 
  2.15     (5) one representative of boys sports; 
  2.16     (6) one representative of girls sports; 
  2.17     (7) one representative of music educators; 
  2.18     (8) one representative of speech educators; 
  2.19     (9) two representatives of the Minnesota school boards 
  2.20  association; and 
  2.21     (10) two representatives of Minnesota high school sports 
  2.22  officials. 
  2.23  A group representing any of the classes of people listed in 
  2.24  clauses (1) to (10) may submit names to the governor for 
  2.25  consideration as board members.  One-half of the board members 
  2.26  must reside outside the seven-county metropolitan area.  In 
  2.27  making appointments, the governor shall attempt to ensure racial 
  2.28  and gender diversity on the board. 
  2.29     (b) The terms, compensation, removal of members, and the 
  2.30  filling of membership vacancies are governed by section 15.0575, 
  2.31  except that terms expire June 30, or until a successor is 
  2.32  appointed. 
  2.33     Sec. 3.  Minnesota Statutes 1996, section 128C.02, is 
  2.34  amended by adding a subdivision to read: 
  2.35     Subd. 8.  [EMPLOYEES.] (a) The board shall appoint an 
  2.36  executive director for the league, who serves at the pleasure of 
  3.1   the board.  The board may not enter into a contract with the 
  3.2   executive director that limits the ability of the board to 
  3.3   terminate the executive director. 
  3.4      (b) A total compensation plan for the executive director 
  3.5   and for all other league employees must be approved by the 
  3.6   commissioner of employee relations before implementation.  In 
  3.7   considering total compensation for league employees, the 
  3.8   commissioner of employee relations must compare league 
  3.9   compensation to the compensation of other Minnesota state 
  3.10  employees and school district employees, taking account of the 
  3.11  knowledge, skills, responsibilities, and working conditions of 
  3.12  the jobs.  If the commissioner of employee relations rejects a 
  3.13  total compensation plan for the league, the commissioner must 
  3.14  give the league board a statement of reasons for the rejection.  
  3.15     Sec. 4.  Minnesota Statutes 1996, section 128C.02, is 
  3.16  amended by adding a subdivision to read: 
  3.17     Subd. 9.  [BUDGET.] The league is subject to the 
  3.18  commissioner of finance's rules and instructions governing 
  3.19  budget preparation.  The league budget must be submitted to the 
  3.20  commissioner of finance and to the legislature in the same 
  3.21  manner as budgets of executive branch agencies. 
  3.22     Sec. 5.  Minnesota Statutes 1996, section 128C.12, 
  3.23  subdivision 1, is amended to read: 
  3.24     Subdivision 1.  [DUES AND EVENTS REVENUE.] The state 
  3.25  auditor annually must examine the accounts of, and audit all 
  3.26  money paid to, the state high school league by its members.  The 
  3.27  audit must include financial and compliance issues.  The state 
  3.28  auditor must also audit all money derived from any event 
  3.29  sponsored by the league and review any private audits done for 
  3.30  the league.  League audits must include audits of administrative 
  3.31  regions of the league.  The league and its administrative 
  3.32  regions may not contract with private auditors.  The scope of 
  3.33  the state auditor's examinations of the league must be agreed 
  3.34  upon by the board and the state auditor, provided that all 
  3.35  requirements of this section must be met. 
  3.36     Sec. 6.  [128C.13] [INVESTMENT.] 
  4.1      The governing board of the league may request the state 
  4.2   board of investment to invest nonretirement funds of the league, 
  4.3   and the state board of investment may invest these funds when 
  4.4   requested. 
  4.5      Sec. 7.  [TRANSITION.] 
  4.6      Subdivision 1.  [BOARD MEMBERS.] The governor shall make 
  4.7   appointments required by section 2 only upon the next expiration 
  4.8   of the terms of members currently serving on the board.  
  4.9   However, a term of a person who is a member of the board on the 
  4.10  effective date of this section, whose term is scheduled to 
  4.11  expire in January of a year instead expires on June 30, of that 
  4.12  year.  
  4.13     Subd. 2.  [COMPENSATION PLAN.] The compensation plan 
  4.14  required under section 3 is effective January 1, 1998. 
  4.15     Sec. 8.  [EFFECTIVE DATE.] 
  4.16     Sections 1 to 7 are effective 30 days after final enactment.