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; requiring studies; creating working 
  1.6             groups; creating state accounts; modifying local 
  1.7             government financial reporting provisions; modifying 
  1.8             agency and budget reporting provisions; modifying cash 
  1.9             advance provisions; modifying provisions for claims 
  1.10            against appropriations; providing for disposition of 
  1.11            lawsuit proceeds; modifying state property rental 
  1.12            provisions; providing a teen court program; providing 
  1.13            for a uniform business identifier and electronic 
  1.14            business licensing; authorizing the payment of salary 
  1.15            differential for reserve forces on active duty in 
  1.16            Haiti; waiving contractor's bond for art in state 
  1.17            buildings; modifying the disposition of certain fees 
  1.18            and surcharges; authorizing reimbursement charges for 
  1.19            certain inspections; modifying responsibilities for 
  1.20            payment of certain retirement supplemental benefits; 
  1.21            setting state policy for regulatory rules and programs 
  1.22            of agencies; regulating obsolete, unnecessary, or 
  1.23            duplicative rules; providing for expansion of 
  1.24            international trading opportunities; modifying 
  1.25            provisions of the amateur sports commission; 
  1.26            restricting payments related to the Target Center; 
  1.27            modifying appointment provisions for the board of 
  1.28            ethical practices executive director; providing for 
  1.29            additional legislative leadership positions; 
  1.30            establishing the Minnesota office of technology; 
  1.31            providing for repayment of certain local government 
  1.32            grants; changing the name of the ethical practices 
  1.33            board; amending Minnesota Statutes 1996, sections 
  1.34            3.099, subdivision 3; 6.47; 10A.02, subdivision 5; 
  1.35            14.05, subdivision 5; 14.131; 16A.10, subdivision 2; 
  1.36            16A.11, subdivisions 1, 3, and 3c; 16A.1285, 
  1.37            subdivision 3; 16A.129, subdivision 3; 16A.15, 
  1.38            subdivision 3; 16B.19, subdivision 2b; 16B.24, 
  1.39            subdivision 5; 16B.35, by adding a subdivision; 
  1.40            16B.465, subdivision 3; 16B.70, subdivision 2; 
  1.41            176.611, by adding subdivisions; 240A.08; 327.33, 
  1.42            subdivision 2; 327B.04, subdivision 7; 349.163, 
  1.43            subdivision 4; 356.865, subdivision 3; 363.073, 
  1.44            subdivision 1; and 473.556, subdivision 16; proposing 
  1.45            coding for new law in Minnesota Statutes, chapters 14; 
  1.46            16A; 16B; 43A; 260; and 465; proposing coding for new 
  2.1             law as Minnesota Statutes, chapter 237A; repealing 
  2.2             Minnesota Statutes 1996, sections 10A.21; 15.95; 
  2.3             15.96; 16B.40; 16B.41; 16B.42; 16B.43; and 16B.58, 
  2.4             subdivision 8. 
  2.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.6                              ARTICLE 1 
  2.7   Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.8      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.9   appropriated from the general fund, or another fund named, to 
  2.10  the agencies and for the purposes specified in this act, to be 
  2.11  available for the fiscal years indicated for each purpose.  The 
  2.12  figures "1997," "1998," and "1999," where used in this act, mean 
  2.13  that the appropriation or appropriations listed under them are 
  2.14  available for the year ending June 30, 1997, June 30, 1998, or 
  2.15  June 30, 1999, respectively.  
  2.16                          SUMMARY BY FUND 
  2.17                                                       BIENNIAL
  2.18             1997           1998          1999           TOTAL
  2.19  General $5,000,000   $309,016,000   $314,336,000   $628,352,000
  2.21  State 
  2.22  Government 
  2.23  Special Revenue        11,160,000     12,180,000     23,340,000 
  2.24  Environmental             224,000        229,000        453,000
  2.25  Solid Waste               445,000        450,000        895,000
  2.26  Highway User
  2.27  Tax Distribution        2,044,000      2,091,000      4,135,000
  2.28  Trunk Highway              37,000         37,000         74,000 
  2.29  Workers'
  2.30  Compensation            4,207,000      4,295,000      8,502,000 
  2.31  Prize Fund              1,800,000      1,800,000      3,600,000 
  2.32  TOTAL   $5,000,000   $328,933,000   $335,418,000   $669,351,000
  2.34                                             APPROPRIATIONS 
  2.35                                         Available for the Year 
  2.36                                             Ending June 30 
  2.37                                            1998         1999 
  2.38  Sec. 2.  LEGISLATURE 
  2.39  Subdivision 1.  Total  
  2.40  Appropriation                         54,000,000     56,543,000
  2.41                Summary by Fund
  3.1   General              53,963,000    56,506,000
  3.2   Trunk Highway            37,000        37,000
  3.3   The amounts that may be spent from this 
  3.4   appropriation for each program are 
  3.5   specified in the following subdivisions.
  3.6   Subd. 2.  Senate                      18,280,000     18,049,000
  3.7   Subd. 3.  House of Representatives    23,561,000     25,745,000
  3.8   Subd. 4.  Legislative 
  3.9   Coordinating Commission               12,094,000     12,749,000
  3.10                Summary by Fund
  3.11  General              12,122,000    12,712,000
  3.12  Trunk Highway            37,000        37,000
  3.13  $4,754,000 the first year and 
  3.14  $5,363,000 the second year are for the 
  3.15  office of the revisor of statutes. 
  3.16  $1,030,000 the first year and 
  3.17  $1,052,000 the second year are for the 
  3.18  legislative reference library. 
  3.19  $4,615,000 the first year and 
  3.20  $4,622,000 the second year are for the 
  3.21  office of the legislative auditor. 
  3.22  $65,000 the first year is for expenses 
  3.23  of the information policy task force 
  3.24  created by this act and is available 
  3.25  until June 30, 1999. 
  3.26  Sec. 3.  GOVERNOR AND 
  3.27  LIEUTENANT GOVERNOR                    3,816,000      3,884,000
  3.28  This appropriation is to fund the 
  3.29  offices of the governor and lieutenant 
  3.30  governor.  
  3.31  $19,000 the first year and $19,000 the 
  3.32  second year are for necessary expenses 
  3.33  in the normal performance of the 
  3.34  governor's and lieutenant governor's 
  3.35  duties for which no other reimbursement 
  3.36  is provided. 
  3.37  By September 1 of each year, the 
  3.38  commissioner of finance shall report to 
  3.39  the chairs of the senate governmental 
  3.40  operations budget division and the 
  3.41  house state government finance division 
  3.42  any personnel costs incurred by the 
  3.43  office of the governor and lieutenant 
  3.44  governor that were supported by 
  3.45  appropriations to other agencies during 
  3.46  the previous fiscal year.  The office 
  3.47  of the governor shall inform the chairs 
  3.48  of the divisions before initiating any 
  3.49  interagency agreements. 
  3.50  Sec. 4.  STATE AUDITOR                 7,675,000      7,888,000
  3.51  Sec. 5.  STATE TREASURER               2,070,000      2,134,000
  3.52  $1,000,000 the first year and 
  4.1   $1,000,000 the second year are for the 
  4.2   treasurer to pay for banking services 
  4.3   by fees rather than by compensating 
  4.4   balances.  
  4.5   Sec. 6.  ATTORNEY GENERAL 
  4.6   Subdivision 1.  Total  
  4.7   Appropriation                         26,208,000     27,896,000
  4.8                 Summary by Fund
  4.9   General              23,786,000    25,391,000
  4.10  State Government
  4.11  Special Revenue       1,849,000     1,924,000
  4.12  Environmental           128,000       131,000 
  4.13  Solid Waste             445,000       450,000 
  4.14  The amounts that may be spent from this 
  4.15  appropriation for each program are 
  4.16  specified in the following subdivisions.
  4.17  Subd. 2.  Government Services 
  4.18       3,628,000      3,735,000
  4.19  Subd. 3.  Public and 
  4.20  Human Resources
  4.21       2,886,000      4,011,000
  4.22                Summary by Fund
  4.23  General               2,441,000     3,561,000
  4.24  Solid Waste             445,000       450,000
  4.25  Subd. 4.  Law Enforcement 
  4.26       5,391,000      5,502,000
  4.27                Summary by Fund
  4.28  General               5,242,000     5,350,000
  4.29  Environmental           128,000       131,000
  4.30  State Government 
  4.31  Special Revenue          21,000        21,000 
  4.32  Subd. 5.  Legal Policy and 
  4.33  Administration 
  4.34       5,237,000      5,306,000
  4.35  Subd. 6.  Business Regulation 
  4.36       2,799,000      2,887,000
  4.37  Subd. 7.  Solicitor General  
  4.38       3,678,000      3,766,000
  4.39  Subd. 8.  Health and Licensing 
  4.40       2,589,000      2,689,000 
  4.41                Summary by Fund
  5.1   General                 761,000       786,000
  5.2   State Government 
  5.3   Special Revenue       1,828,000     1,903,000
  5.4   Sec. 7.  SECRETARY OF STATE            6,187,000      5,914,000
  5.5   $34,000 the first year and $26,000 the 
  5.6   second year are for administrative 
  5.7   expenses related to the uniform 
  5.8   partnership act, 1997 S.F. No. 298, if 
  5.9   enacted. 
  5.10  $50,000 the first year is for licensing 
  5.11  digital signature certification 
  5.12  authorities under 1997 S.F. No. 173, if 
  5.13  enacted. 
  5.14  Sec. 8.  ETHICAL PRACTICES BOARD          593,000        483,000
  5.15  Sec. 9.  INVESTMENT BOARD               2,163,000      2,247,000
  5.16  Sec. 10.  ADMINISTRATIVE HEARINGS       4,107,000      4,195,000
  5.17  This appropriation is from the workers' 
  5.18  compensation special compensation fund 
  5.19  for considering workers' compensation 
  5.20  claims. 
  5.21  Sec. 11.  OFFICE OF STRATEGIC 
  5.22  AND LONG-RANGE PLANNING                 4,196,000      4,126,000
  5.23  $150,000 the first year is to develop 
  5.24  the strategic plan for economic policy 
  5.25  required by this act. 
  5.26  Sec. 12.  ADMINISTRATION 
  5.27  Subdivision 1.  Total 
  5.28  Appropriation                          49,794,000     50,699,000
  5.29                Summary by Fund
  5.30  General              40,883,000    40,843,000
  5.31  State Government 
  5.32  Special Revenue       8,911,000     9,856,000
  5.33  The amounts that may be spent from this 
  5.34  appropriation for each program are 
  5.35  specified in the following subdivisions.
  5.36  Subd. 2.  Operations Management 
  5.37       3,424,000      3,496,000
  5.38  Subd. 3.  Intertechnologies Group
  5.39      23,416,000     24,607,000
  5.40                Summary by Fund
  5.41  General              14,505,000    14,751,000
  5.42  State Government 
  5.43  Special Revenue       8,911,000     9,856,000
  5.44  The appropriation from the special 
  5.45  revenue fund is for recurring costs of 
  5.46  911 emergency telephone service.  
  6.1   $724,000 the first year and $936,000 
  6.2   the second year are for the network 
  6.3   telecommunications initiative.  It is 
  6.4   intended that portions of this 
  6.5   appropriation be transferred to other 
  6.6   agencies to fund project costs.  The 
  6.7   commissioner is authorized to make the 
  6.8   transfers with the advance approval of 
  6.9   the commissioner of finance.  The 
  6.10  commissioner shall include the cost of 
  6.11  these capital improvements in the 
  6.12  amounts billed to agencies, and shall 
  6.13  reimburse the general fund for this 
  6.14  appropriation as cash flow in the 
  6.15  intertechnologies fund permits, but no 
  6.16  later than June 30, 2000. 
  6.17  $12,750,000 the first year and 
  6.18  $12,750,000 the second year are to 
  6.19  modify state business systems to 
  6.20  address year 2000 changes.  No more 
  6.21  than $8,669,000 of this appropriation 
  6.22  may be used for the year 2000 project 
  6.23  office, system assurance, risk 
  6.24  assessment, and risk abatement. If the 
  6.25  appropriation for either year is 
  6.26  insufficient, the appropriation for the 
  6.27  other year is available for it. 
  6.28  $300,000 the first year and $300,000 
  6.29  the second year are to operate and 
  6.30  expand the North Star web site. 
  6.31  Subd. 4.  Facilities Management 
  6.32      14,609,000     14,727,000
  6.33  $5,775,000 the first year and 
  6.34  $5,775,000 the second year are for 
  6.35  repair and maintenance of state 
  6.36  facilities under the custodial control 
  6.37  of the commissioner of administration. 
  6.38  $5,187,000 the first year and 
  6.39  $5,249,000 the second year are for 
  6.40  office space costs of the legislature 
  6.41  and veterans organizations, for 
  6.42  ceremonial space, and for statutorily 
  6.43  free space. 
  6.44  The commissioner of administration 
  6.45  shall examine the feasibility and 
  6.46  practicality of relocating the division 
  6.47  of emergency services to larger 
  6.48  quarters outside the capitol. 
  6.49  Subd. 5.  Administrative Management 
  6.50       2,428,000      2,484,000
  6.51  $2,000 the first year and $2,000 the 
  6.52  second year are for the state 
  6.53  employees' band. 
  6.54  $187,000 the first year and $190,000 
  6.55  the second year are for the office of 
  6.56  the state archaeologist. 
  6.57  Subd. 6.  Management Analysis 
  6.58         584,000        658,000
  7.1   Subd. 7.  Public Information Policy 
  7.2   Analysis 
  7.3          493,000        501,000 
  7.4   Subd. 8.  Public Broadcasting 
  7.5        4,680,000      4,066,000
  7.6   $1,600,000 the first year and 
  7.7   $1,600,000 the second year are for 
  7.8   matching grants for public television.  
  7.9   Public television grant recipients 
  7.10  shall give special emphasis to 
  7.11  children's programming.  In addition, 
  7.12  public television grant recipients 
  7.13  shall promote program and outreach 
  7.14  initiatives that attempt to reduce 
  7.15  youth violence in our communities.  
  7.16  $800,000 the first year and $800,000 
  7.17  the second year are for public 
  7.18  television equipment needs.  Equipment 
  7.19  grant allocations shall be made after 
  7.20  considering the recommendations of the 
  7.21  Minnesota public television association.
  7.22  $750,000 the first year is for a 
  7.23  one-time grant to Twin Cities public 
  7.24  television to develop high-definition 
  7.25  digital television capability.  Twin 
  7.26  Cities public television will work with 
  7.27  the University of Minnesota and other 
  7.28  higher education institutions to 
  7.29  explore and demonstrate educational 
  7.30  uses of the broadcast services funded 
  7.31  by this appropriation.  This 
  7.32  appropriation must be matched equally 
  7.33  from nonstate sources. 
  7.34  $305,000 the first year and $441,000 
  7.35  the second year are for grants for 
  7.36  public information television 
  7.37  transmission of legislative 
  7.38  activities.  At least one-half must go 
  7.39  for programming to be broadcast in 
  7.40  rural Minnesota. 
  7.41  $25,000 the first year and $25,000 the 
  7.42  second year are for grants to the Twin 
  7.43  Cities regional cable channel. 
  7.44  $400,000 the first year and $400,000. 
  7.45  the second year are for community 
  7.46  service grants to public educational 
  7.47  radio stations, which must be allocated 
  7.48  after considering the recommendations 
  7.49  of the Association of Minnesota Public 
  7.50  Educational Radio Stations under 
  7.51  Minnesota Statutes, section 129D.14. 
  7.52  $800,000 the first year and $800,000 
  7.53  the second year are for equipment 
  7.54  grants to public radio stations.  These 
  7.55  grants must be allocated after 
  7.56  considering the recommendations of the 
  7.57  Association of Minnesota Public 
  7.58  Educational Radio Stations and 
  7.59  Minnesota Public Radio, Inc. 
  7.60  If an appropriation for either year for 
  8.1   grants to public television or radio 
  8.2   stations is not sufficient, the 
  8.3   appropriation for the other year is 
  8.4   available for it. 
  8.5   Subd. 9.  Children's Museum 
  8.6          160,000        160,000
  8.7   This appropriation is for a grant to 
  8.8   the Minnesota Children's Museum. 
  8.9   Sec. 13.  OFFICE OF TECHNOLOGY
  8.10  Subdivision 1.  Total 
  8.11  Appropriation                          2,995,000      3,035,000
  8.12  The amounts that may be spent from this 
  8.13  appropriation for each program are 
  8.14  specified in the following subdivisions.
  8.15  Subd. 2.  Operations Management
  8.16         756,000        774,000
  8.17  The appropriation in Laws 1994, chapter 
  8.18  587, article 3, section 3, to the 
  8.19  intergovernmental information systems 
  8.20  advisory council, is canceled. 
  8.21  Subd. 3.  Information Policy Office
  8.22       1,339,000      1,361,000
  8.23  Subd. 4.  Minnesota Trade Point
  8.24         400,000        400,000
  8.25  This appropriation is available only as 
  8.26  matched by $1 of nonstate money for 
  8.27  each $2 from this appropriation. 
  8.28  This appropriation is to expand 
  8.29  international trading opportunities for 
  8.30  small and medium sized businesses via 
  8.31  the use of electronic commerce 
  8.32  technologies under new Minnesota 
  8.33  Statutes, section 237A.08. 
  8.34  Subd. 5.  Uniform Business Identifier/
  8.35  One-Stop Licensing
  8.36         500,000        500,000
  8.37  This appropriation is available only as 
  8.38  matched by $1 of nonstate money for 
  8.39  each $2 from this appropriation. 
  8.40  This appropriation is for development 
  8.41  of the uniform business identifier 
  8.42  required by the new Minnesota Statutes, 
  8.43  section 237A.09.  The executive 
  8.44  director shall report to the 
  8.45  legislature by June 30, 1998, on 
  8.46  progress of the project and the need 
  8.47  for additional appropriations and 
  8.48  legislation to complete the business 
  8.49  license information system required by 
  8.50  the new Minnesota Statutes, section 
  8.51  237A.10, and the electronic business 
  8.52  licensing system required by new 
  9.1   Minnesota Statutes, section 237A.11. 
  9.2   Sec. 14.  CAPITOL AREA ARCHITECTURAL 
  9.3   AND PLANNING BOARD                       746,000        289,000
  9.4   $440,000 the first year is for the 
  9.5   governor's portrait, predesign of a 
  9.6   memorial to Coya Knutson, design and 
  9.7   construction of a memorial to Hubert H. 
  9.8   Humphrey, and completion of the 
  9.9   Minnesota women's suffrage memorial 
  9.10  garden and is available until expended. 
  9.11  Notwithstanding Laws 1993, chapter 192, 
  9.12  section 16, the appropriation in that 
  9.13  section for the Hubert H. Humphrey 
  9.14  memorial need not be matched. 
  9.15  The appropriation in Laws 1996, chapter 
  9.16  390, section 5, for revision of the 
  9.17  board's comprehensive plan and zoning 
  9.18  ordinance is available until June 30, 
  9.19  1998. 
  9.20  Sec. 15.  FINANCE 
  9.21  Subdivision 1.  Total 
  9.22  Appropriation                         21,673,000     21,902,000
  9.23  The amounts that may be spent from this 
  9.24  appropriation for each program are 
  9.25  specified in the following subdivisions.
  9.26  Subd. 2.  Accounting Services  
  9.27       4,696,000      4,795,000
  9.28  The commissioner of finance is the 
  9.29  successor to the intergovernmental 
  9.30  information systems advisory council 
  9.31  for purposes of carrying out the 
  9.32  council's recommendations regarding the 
  9.33  local government financial reporting 
  9.34  project (FINREP) during the biennium 
  9.35  ending June 30, 1999. 
  9.36  Subd. 3.  Accounts Receivable
  9.37  Operations
  9.38       1,476,000      1,513,000
  9.39  $595,000 the first year and $610,000 
  9.40  the second year are for transfer to the 
  9.41  department of revenue. 
  9.42  $266,000 the first year and $273,000 
  9.43  the second year are for transfer to the 
  9.44  department of human services. 
  9.45  $562,000 the first year and $576,000 
  9.46  the second year are for transfer to the 
  9.47  attorney general. 
  9.48  Subd. 4.  Budget Services 
  9.49       2,129,000      2,189,000
  9.50  The commissioner of finance shall 
  9.51  convene a joint executive-legislative 
  9.52  work group to evaluate the current 
  9.53  usefulness and benefits of agency 
 10.1   performance reports prepared in 
 10.2   accordance with the requirements of 
 10.3   Minnesota Statutes, sections 15.90 to 
 10.4   15.92.  The work group shall include 
 10.5   representatives of reporting agencies, 
 10.6   the office of the legislative auditor, 
 10.7   the legislative committees to which 
 10.8   agency performance reports are 
 10.9   presented, and other parties as deemed 
 10.10  appropriate by the commissioner.  By 
 10.11  November 3, 1997, the commissioner 
 10.12  shall report the progress of the work 
 10.13  group to the legislative commission on 
 10.14  planning and fiscal policy and other 
 10.15  committees as appropriate.  The report 
 10.16  of the commissioner shall contain 
 10.17  recommendations on proposed 
 10.18  administrative and legislative actions 
 10.19  to increase the relevance, overall 
 10.20  usefulness, and benefits of state 
 10.21  performance reporting efforts, and 
 10.22  increase the efficiency of the report 
 10.23  development process.  By February 2, 
 10.24  1998, the commissioner shall report to 
 10.25  the legislative commission on planning 
 10.26  and fiscal policy and other committees 
 10.27  as appropriate on performance measures 
 10.28  proposed for reporting on specific 
 10.29  agencies, and request the concurrence 
 10.30  of the legislature on the proposed 
 10.31  measures. 
 10.32  Subd. 5.  Economic Analysis  
 10.33         313,000        319,000
 10.34  Subd. 6.  Information Services 
 10.35      11,457,000    11,455,000
 10.36  Subd. 7.  Management Services 
 10.37       1,602,000      1,631,000
 10.38  Sec. 16.  EMPLOYEE RELATIONS 
 10.39  Subdivision 1.  Total 
 10.40  Appropriation                          8,133,000      7,206,000
 10.41  The amounts that may be spent from this 
 10.42  appropriation for each program are 
 10.43  specified in the following subdivisions.
 10.44  Subd. 2.  Human Resources
 10.45  Management
 10.46       7,029,000      7,102,000
 10.47  $325,000 the first year and $240,000 
 10.48  the second year are for continuation of 
 10.49  reforms to the state's human resource 
 10.50  management processes and policies, 
 10.51  including, but not limited to, 
 10.52  enhancing redeployment procedures, 
 10.53  application and testing services, 
 10.54  hiring, the position classification 
 10.55  system, and employee development 
 10.56  processes.  The commissioner of finance 
 10.57  shall include $140,000 of the second 
 10.58  year amount when determining the base 
 10.59  level for the budget of the department 
 11.1   of employee relations for the biennium 
 11.2   ending June 30, 2001. 
 11.3   $40,000 the first year and $40,000 the 
 11.4   second year are for a grant to the 
 11.5   government training service. 
 11.6   $75,000 the first year and $75,000 the 
 11.7   second year are for the Minnesota 
 11.8   quality college under Minnesota 
 11.9   Statutes, section 43A.211. 
 11.10  Subd. 3.  Employee Insurance
 11.11       1,104,000        104,000
 11.12  $104,000 the first year and $104,000 
 11.13  the second year are for the 
 11.14  right-to-know contracts administered 
 11.15  through the employee insurance division.
 11.16  $1,000,000 in the first year is a 
 11.17  one-time appropriation to establish a 
 11.18  state workers' compensation settlement 
 11.19  and contingency reserve.  This 
 11.20  appropriation must be transferred to a 
 11.21  separate account within the 
 11.22  miscellaneous special revenue fund, 
 11.23  from which payments may be made and 
 11.24  premiums assessed to replenish the 
 11.25  reserve account under new Minnesota 
 11.26  Statutes, section 176.611, subdivision 
 11.27  2a. 
 11.28  Sec. 17.  REVENUE 
 11.29  Subdivision 1.  Total  
 11.30  Appropriation                         80,251,000     82,483,000
 11.31                Summary by Fund
 11.32  General              78,111,000    80,294,000
 11.33  Highway User 
 11.34  Tax Distribution      2,044,000     2,091,000
 11.35  Environmental            96,000        98,000
 11.36  The amounts that may be spent from this 
 11.37  appropriation for each program are 
 11.38  specified in the following subdivisions.
 11.39  Subd. 2.  Income Tax 
 11.40      14,297,000     14,549,000
 11.41  Subd. 3.  Sales and Special Taxes 
 11.42      13,657,000     13,972,000
 11.43                Summary by Fund
 11.44  General              11,517,000    11,783,000
 11.45  Highway User          2,044,000     2,091,000
 11.46  Environmental            96,000        98,000
 11.47  $150,000 the first year and $150,000 
 11.48  the second year from the highway user 
 11.49  tax distribution fund are for funding 
 12.1   the dyed fuel program.  This 
 12.2   appropriation is reduced by any federal 
 12.3   grants available to the commissioner 
 12.4   for use before June 30, 1999, for dyed 
 12.5   fuel enforcement purposes under the 
 12.6   internal revenue service/Minnesota 
 12.7   department of revenue diesel fuel 
 12.8   inspection agreement, and joint 
 12.9   federal-state motor fuel tax compliance 
 12.10  project. 
 12.11  Subd. 4.  Property Tax and State Aids 
 12.12       2,869,000      3,026,000
 12.13  Subd. 5.  Tax Operations 
 12.14      27,588,000     28,116,000
 12.15  Subd. 6.  Legal and Research 
 12.16       3,830,000      3,832,000
 12.17  $80,000 the first year is to complete 
 12.18  the Minnesota/Wisconsin tax reciprocity 
 12.19  study. 
 12.20  Subd. 7.  Administrative Support 
 12.21      15,887,000     16,827,000
 12.22  Subd. 8.  Accounts Receivable 
 12.23       2,123,000      2,161,000
 12.24  Sec. 18.  MILITARY AFFAIRS  
 12.25  Subdivision 1.  Total 
 12.26  Appropriation                          9,691,000     9,802,000
 12.27  The amounts that may be spent from this 
 12.28  appropriation for each program are 
 12.29  specified in the following subdivisions.
 12.30  Subd. 2.  Maintenance of Training 
 12.31  Facilities 
 12.32       5,731,000      5,804,000
 12.33  Subd. 3.  General Support
 12.34       1,608,000      1,645,000
 12.35  $75,000 the first year and $75,000 the 
 12.36  second year are for expenses of 
 12.37  military forces ordered to active duty 
 12.38  under Minnesota Statutes, chapter 192.  
 12.39  If the appropriation for either year is 
 12.40  insufficient, the appropriation for the 
 12.41  other year is available for it.  
 12.42  Subd. 4.  Enlistment Incentives
 12.43       2,352,000      2,353,000 
 12.44  Obligations for the reenlistment bonus 
 12.45  program, suspended on December 31, 
 12.46  1991, shall be paid from the amounts 
 12.47  available within the enlistment 
 12.48  incentives program. 
 13.1   If appropriations for either year of 
 13.2   the biennium are insufficient, the 
 13.3   appropriation from the other year is 
 13.4   available.  The appropriations for 
 13.5   enlistment incentives are available 
 13.6   until expended. 
 13.7   Sec. 19.  VETERANS AFFAIRS             4,034,000      4,074,000
 13.8   $231,000 the first year and $232,000 
 13.9   the second year are for grants to 
 13.10  county veterans offices for training of 
 13.11  county veterans service officers. 
 13.12  $1,544,000 the first year and 
 13.13  $1,544,000 the second year are for 
 13.14  emergency financial and medical needs 
 13.15  of veterans.  If the appropriation for 
 13.16  either year is insufficient, the 
 13.17  appropriation for the other year is 
 13.18  available for it.  
 13.19  With the approval of the commissioner 
 13.20  of finance, the commissioner of 
 13.21  veterans affairs may transfer the 
 13.22  unencumbered balance from the veterans 
 13.23  relief program to other department 
 13.24  programs during the fiscal year.  
 13.25  Before the transfer, the commissioner 
 13.26  of veterans affairs shall explain why 
 13.27  the unencumbered balance exists.  The 
 13.28  amounts transferred must be identified 
 13.29  to the chairs of the senate 
 13.30  governmental operations budget 
 13.31  committee and the house governmental 
 13.32  operations and gambling committee 
 13.33  division on state government finance. 
 13.34  $275,000 the first year and $275,000 
 13.35  the second year are for a grant to the 
 13.36  Vinland National Center. 
 13.37  Sec. 20.  VETERANS OF FOREIGN 
 13.38  WARS                                      41,000         41,000
 13.39  For carrying out the provisions of Laws 
 13.40  1945, chapter 455. 
 13.41  Sec. 21.  MILITARY ORDER OF 
 13.42  THE PURPLE HEART                          20,000         20,000
 13.43  Sec. 22.  DISABLED AMERICAN VETERANS      13,000         12,000
 13.44  For carrying out the provisions of Laws 
 13.45  1941, chapter 425. 
 13.46  Sec. 23.  LAWFUL GAMBLING  
 13.47  CONTROL                                2,277,000      2,177,000
 13.48  The commissioner of revenue must 
 13.49  continue to provide technical support 
 13.50  to the lawful gambling control board 
 13.51  for the collection of gambling taxes 
 13.52  without charge during the biennium 
 13.53  ending June 30, 1999. 
 13.54  Sec. 24.  RACING COMMISSION              371,000        379,000
 13.55  Sec. 25.  STATE LOTTERY                1,800,000      1,800,000
 13.56  This appropriation is from the state 
 14.1   lottery prize fund for compulsive 
 14.2   gambling treatment programs under 
 14.3   Minnesota Statutes, section 245.98, and 
 14.4   is in addition to any other 
 14.5   appropriations for the same purpose 
 14.6   enacted by the 1997 regular session of 
 14.7   the legislature. 
 14.8   The director of the state lottery shall 
 14.9   reimburse the general fund $150,000 the 
 14.10  first year and $150,000 the second year 
 14.11  for lottery-related costs incurred by 
 14.12  the department of public safety. 
 14.13  The director of the state lottery shall 
 14.14  reimburse the general fund $540,000 the 
 14.15  first year and $540,000 the second year 
 14.16  for amounts appropriated from the 
 14.17  general fund to the commissioner of 
 14.18  human services for compulsive gambling 
 14.19  hotline services, outpatient treatment 
 14.20  services, felony screening, and 
 14.21  compulsive gambling youth education. 
 14.22  Sec. 26.  AMATEUR SPORTS 
 14.23  COMMISSION                5,000,000      620,000        599,000
 14.24  $5,000,000 for fiscal year 1997 is for 
 14.25  grants for ice centers under Minnesota 
 14.26  Statutes, section 240A.09, of up to 
 14.27  $250,000 each. 
 14.28  $500,000 the first year and $500,000 
 14.29  the second year are for renovation 
 14.30  grants for existing ice arenas. 
 14.31  The amateur sports commission shall 
 14.32  report to the legislature by January 
 14.33  15, 1998, on progress toward the 
 14.34  construction and renovation of ice 
 14.35  arenas, their success, financing, and 
 14.36  operation, and any need for additional 
 14.37  state-assisted efforts. 
 14.38  Sec. 27.  BOARD OF THE ARTS        
 14.39  Subdivision 1.  Total Appropriation   13,018,000     13,036,000
 14.40  Any unencumbered balance remaining in 
 14.41  this section the first year does not 
 14.42  cancel but is available for the second 
 14.43  year of the biennium. 
 14.44  Subd. 2.  Operations and Services        988,000        961,000
 14.45  Subd. 3.  Grants Program               8,518,000      8,540,000
 14.46  The board shall spend this 
 14.47  appropriation to ensure that at least 
 14.48  ten percent of the expenditure is for 
 14.49  arts programs intended primarily for 
 14.50  children. 
 14.51  Subd. 4.  Regional Arts
 14.52  Councils                               3,512,000      3,535,000
 14.53  The board shall distribute this 
 14.54  appropriation to the regional arts 
 14.55  councils to ensure that ten percent of 
 14.56  the total distribution in each region 
 14.57  is for arts programs intended primarily 
 15.1   for children. 
 15.2   Sec. 28.  MINNESOTA HUMANITIES 
 15.3   COMMISSION                               886,000        886,000
 15.4   Any unencumbered balance remaining in 
 15.5   the first year does not cancel but is 
 15.6   available for the second year of the 
 15.7   biennium. 
 15.8   Sec. 29.  GENERAL CONTINGENT 
 15.9   ACCOUNTS                                 700,000        700,000
 15.10                Summary by Fund
 15.11  General                 200,000       200,000
 15.12  State Government 
 15.13  Special Revenue         400,000       400,000
 15.14  Workers' Compensation   100,000       100,000
 15.15  The appropriations in this section must 
 15.16  be spent with the approval of the 
 15.17  governor after consultation with the 
 15.18  legislative advisory commission under 
 15.19  Minnesota Statutes, section 3.30. 
 15.20  If an appropriation in this section for 
 15.21  either year is insufficient, the 
 15.22  appropriation for the other year is 
 15.23  available for it. 
 15.24  The special revenue appropriation is 
 15.25  available to be transferred to the 
 15.26  attorney general when the costs to 
 15.27  provide legal services to the health 
 15.28  boards exceed the biennial 
 15.29  appropriation to the attorney general 
 15.30  from the special revenue fund and for 
 15.31  transfer to the health boards if 
 15.32  required for unforeseen expenditures of 
 15.33  an emergency nature.  The boards 
 15.34  receiving the additional services or 
 15.35  supplemental appropriations shall set 
 15.36  their fees to cover the costs. 
 15.37  Sec. 30.  TORT CLAIMS                    275,000        275,000
 15.38  To be spent by the commissioner of 
 15.39  finance.  
 15.40  If the appropriation for either year is 
 15.41  insufficient, the appropriation for the 
 15.42  other year is available for it.  
 15.43  Sec. 31.  MINNESOTA STATE   
 15.44  RETIREMENT SYSTEM                      2,266,000      2,379,000
 15.45  The amounts estimated to be needed for 
 15.46  each program are as follows: 
 15.47  (a) Legislators 
 15.48       2,093,000      2,197,000
 15.49  Under Minnesota Statutes, sections 
 15.50  3A.03, subdivision 2; 3A.04, 
 15.51  subdivisions 3 and 4; and 3A.11. 
 15.52  (b) Constitutional Officers 
 16.1          173,000        182,000
 16.2   Under Minnesota Statutes, sections 
 16.3   352C.031, subdivision 5; 352C.04, 
 16.4   subdivision 3; and 352C.09, subdivision 
 16.5   2. 
 16.6   If an appropriation in this section for 
 16.7   either year is insufficient, the 
 16.8   appropriation for the other year is 
 16.9   available for it. 
 16.10  Sec. 32.  MINNEAPOLIS EMPLOYEES 
 16.11  RETIREMENT FUND                       11,005,000     11,005,000
 16.12  $10,455,000 the first year and 
 16.13  $10,455,000 the second year are to the 
 16.14  commissioner of finance for payment to 
 16.15  the Minneapolis employees retirement 
 16.16  fund under Minnesota Statutes, section 
 16.17  422A.101, subdivision 3.  Payment must 
 16.18  be made in four equal installments, 
 16.19  March 15, July 15, September 15, and 
 16.20  November 15, each year.  
 16.21  $550,000 the first year and $550,000 
 16.22  the second year are to the commissioner 
 16.23  of finance for payment to the 
 16.24  Minneapolis employees retirement fund 
 16.25  for the supplemental benefit for 
 16.26  pre-1973 retirees under Minnesota 
 16.27  Statutes, section 356.865. 
 16.28  Sec. 33.  POLICE AND FIRE   
 16.29  AMORTIZATION AID                       6,303,000      6,300,000
 16.30  $4,925,000 the first year and 
 16.31  $4,925,000 the second year are to the 
 16.32  commissioner of revenue for state aid 
 16.33  to amortize the unfunded liability of 
 16.34  local police and salaried firefighters' 
 16.35  relief associations, under Minnesota 
 16.36  Statutes, section 423A.02. 
 16.37  $1,000,000 the first year and 
 16.38  $1,000,000 the second year are to the 
 16.39  commissioner of revenue for 
 16.40  supplemental state aid to amortize the 
 16.41  unfunded liability of local police and 
 16.42  salaried firefighters' relief 
 16.43  associations under Minnesota Statutes, 
 16.44  section 423A.02, subdivision 1a. 
 16.45  $378,000 the first year and $378,000 
 16.46  the second year are to the commissioner 
 16.47  of revenue to pay reimbursements to 
 16.48  relief associations for firefighter 
 16.49  supplemental benefits paid under 
 16.50  Minnesota Statutes, section 424A.10. 
 16.51  Sec. 34.  BOARD OF GOVERNMENT   
 16.52  INNOVATION AND COOPERATION                1,006,000    1,009,000
 16.53  The appropriation to the board of 
 16.54  government innovation and cooperation 
 16.55  in Laws 1995, chapter 264, article 8, 
 16.56  section 25, and designated for aids to 
 16.57  cooperating and combining local 
 16.58  government units under Minnesota 
 16.59  Statutes, section 465.87, is available 
 16.60  until June 30, 1999. 
 17.1   Sec. 35.  BOND SALE SCHEDULE 
 17.2   The commissioner of finance shall 
 17.3   schedule the sale of state general 
 17.4   obligation bonds so that, during the 
 17.5   biennium ending June 30, 1999, no more 
 17.6   than $545,457,000 will need to be 
 17.7   transferred from the general fund to 
 17.8   the state bond fund to pay principal 
 17.9   and interest due and to become due on 
 17.10  outstanding state general obligation 
 17.11  bonds.  During the biennium, before 
 17.12  each sale of state general obligation 
 17.13  bonds, the commissioner of finance 
 17.14  shall calculate the amount of debt 
 17.15  service payments needed on bonds 
 17.16  previously issued and shall estimate 
 17.17  the amount of debt service payments 
 17.18  that will be needed on the bonds 
 17.19  scheduled to be sold, the commissioner 
 17.20  shall adjust the amount of bonds 
 17.21  scheduled to be sold so as to remain 
 17.22  within the limit set by this section.  
 17.23  The amount needed to make the debt 
 17.24  service payments is appropriated from 
 17.25  the general fund as provided in 
 17.26  Minnesota Statutes, section 16A.641. 
 17.27     Sec. 36.  [ECONOMIC POLICY AND STRATEGIC PLANNING SURVEY.] 
 17.28     The director of the office of strategic and long-range 
 17.29  planning shall survey the possible means of establishing and 
 17.30  sustaining an ongoing state economic policy and the accompanying 
 17.31  strategic planning and measures of success.  Specifically, the 
 17.32  survey should: 
 17.33     (1) review and summarize previous and ongoing efforts to 
 17.34  guide economic goals for Minnesota; 
 17.35     (2) recommend a set of overall goals or possible 
 17.36  alternatives for goals that reflects consensus, focusing on 
 17.37  economic foundations including workforce development, public 
 17.38  infrastructure, well-managed natural resources, technological 
 17.39  innovation and commercialization, access to capital, and tax and 
 17.40  regulatory climate; 
 17.41     (3) identify and critique models of economic policy and 
 17.42  strategic planning from other states; 
 17.43     (4) consider methods of establishing and funding a 
 17.44  broad-based, bipartisan economic policy council which will 
 17.45  include substantial public and private participation; 
 17.46     (5) consider methods of integrating and consolidating the 
 17.47  economic policy work of existing councils, commissions, and task 
 17.48  forces; and 
 18.1      (6) report the findings, including recommendations as to 
 18.2   composition and organization of an economic policy council and 
 18.3   appropriate guidelines for the council, to the legislature by 
 18.4   January 15, 1998. 
 18.5      Sec. 37.  [ESTABLISHMENT OF INTERIM ECONOMIC STRATEGY 
 18.6   GROUP.] 
 18.7      (a) By January 15, 1998, the director of the office of 
 18.8   strategic and long-range planning shall convene an interim 
 18.9   economic strategy group to define the structure of the economic 
 18.10  policy council and the long-range vision for the Minnesota 
 18.11  economy.  The interim group shall be comprised of 16 members 
 18.12  from the public and private sectors with demonstrated leadership 
 18.13  and vision in the area of economic foundations with perspectives 
 18.14  on global competitiveness.  Eight members shall be appointed as 
 18.15  follows:  two by the governor, three by the speaker of the house 
 18.16  of representatives, and three by the subcommittee on committees 
 18.17  of the committee on rules and administration of the senate.  At 
 18.18  least one member from each house of the legislature must be a 
 18.19  member of the minority caucus or an independent.  These eight 
 18.20  members shall appoint eight additional members. 
 18.21     (b) The interim group shall report its findings and 
 18.22  recommendations to the legislature by January 15, 1999.  The 
 18.23  report shall include recommendations for legislative action 
 18.24  regarding establishment of and appropriations for a permanent 
 18.25  economic policy council.  The interim group expires upon 
 18.26  submission of its report.  
 18.27     Sec. 38.  [INFORMATION POLICY TASK FORCE.] 
 18.28     Subdivision 1.  [CREATION.] An information policy 
 18.29  legislative task force is created to study and make 
 18.30  recommendations regarding Minnesota law on public information 
 18.31  policy, including government data practices and information 
 18.32  technology issues.  The task force consists of: 
 18.33     (1) two members of the senate appointed by the 
 18.34  subcommittees on committees of the committee on rules and 
 18.35  administration; 
 18.36     (2) two members of the house of representatives appointed 
 19.1   by the speaker; 
 19.2      (3) four members appointed by the governor; 
 19.3      (4) two nonlegislative members appointed by the 
 19.4   subcommittee on committees of the committee on rules and 
 19.5   administration of the senate; and 
 19.6      (5) two nonlegislative members appointed by the speaker of 
 19.7   the house of representatives.  
 19.8      At least one member from each legislative body must be a 
 19.9   member of the majority party and at least one member from each 
 19.10  body must be a member of the minority party or an independent. 
 19.11     Subd. 2.  [DUTIES; REPORT.] The task force shall study: 
 19.12     (1) the content and organization of government data 
 19.13  practices statutes in Minnesota Statutes, chapter 13, and 
 19.14  related statutes dealing with access to government data, fair 
 19.15  information practices, and privacy; 
 19.16     (2) issues related to surveillance and other forms of 
 19.17  information technology, including the impact of technology on 
 19.18  data practices and privacy; 
 19.19     (3) procedures and structures for developing and 
 19.20  implementing a coherent and coordinated approach to public 
 19.21  information policy; 
 19.22     (4) approaches to information policy in other states and 
 19.23  foreign jurisdictions; and 
 19.24     (5) other information policy issues identified by the task 
 19.25  force. 
 19.26     In its study of statutes under clause (1), the task force 
 19.27  shall include an evaluation to determine whether any statutes 
 19.28  are inconsistent or obsolete. 
 19.29     The task force shall submit a progress report to the 
 19.30  legislature by February 1, 1998, and a final report of its 
 19.31  findings and recommendations, including any proposed 
 19.32  legislation, to the legislature by January 15, 1999. 
 19.33     Subd. 3.  [SUPPORT.] The commissioner of administration and 
 19.34  the director of the office of strategic and long-range planning 
 19.35  shall provide staff and other support services to the council.  
 19.36  Legislative support to the council must come from existing 
 20.1   resources.  The executive director of the Minnesota office of 
 20.2   technology or the executive director's designee shall assist in 
 20.3   the task force's activities.  
 20.4      Subd. 4.  [EXPIRATION.] The task force expires upon 
 20.5   submission of its final report to the legislature under 
 20.6   subdivision 2. 
 20.7      Sec. 39.  [STATEWIDE SYSTEMS ACCOUNT.] 
 20.8      Subdivision 1.  [CONTINUATION.] The statewide systems 
 20.9   account is a separate account in the general fund.  All money 
 20.10  resulting from billings for statewide systems services must be 
 20.11  deposited in the account.  For the purposes of this section, 
 20.12  statewide systems includes the state accounting system, payroll 
 20.13  system, human resources system, procurement system, and related 
 20.14  information access systems. 
 20.15     Subd. 2.  [BILLING PROCEDURES.] The commissioner of finance 
 20.16  may bill up to $3,861,000 in fiscal year 1998 and $4,409,000 in 
 20.17  fiscal year 1999 for statewide systems services provided to 
 20.18  state agencies, judicial branch agencies, the University of 
 20.19  Minnesota, the Minnesota state colleges and universities, and 
 20.20  other entities.  Billing must be based only on usage of services 
 20.21  relating to statewide systems provided by the intertechnologies 
 20.22  division.  Each agency shall transfer from agency operating 
 20.23  appropriations to the statewide systems account the amount 
 20.24  billed by the commissioner.  Billing policies and procedures 
 20.25  related to statewide systems services must be developed by the 
 20.26  commissioner of finance in consultation with the commissioners 
 20.27  of employee relations and administration, the University of 
 20.28  Minnesota, and the Minnesota state colleges and universities. 
 20.29     Subd. 3.  [APPROPRIATION.] Money transferred into the 
 20.30  account is appropriated to the commissioner of finance to pay 
 20.31  for statewide systems services during fiscal years 1998 and 1999.
 20.32                             ARTICLE 2 
 20.33     Section 1.  Minnesota Statutes 1996, section 3.099, 
 20.34  subdivision 3, is amended to read: 
 20.35     Subd. 3.  [LEADERS.] The senate committee on rules and 
 20.36  administration for the senate and the house committee on rules 
 21.1   and legislative administration for the house may each designate 
 21.2   for their respective body up to three five leadership positions 
 21.3   to receive up to 140 percent of the compensation of other 
 21.4   members. 
 21.5      At the commencement of each biennial legislative session, 
 21.6   each house of the legislature shall adopt a resolution 
 21.7   designating its majority and minority leader. 
 21.8      The majority leader is the person elected by the caucus of 
 21.9   members in each house which is its largest political 
 21.10  affiliation.  The minority leader is the person elected by the 
 21.11  caucus which is its second largest political affiliation. 
 21.12     Sec. 2.  Minnesota Statutes 1996, section 6.47, is amended 
 21.13  to read: 
 21.14     6.47 [ACCOUNTING AND BUDGETING SYSTEMS; INVESTIGATION, 
 21.15  FORMS.] 
 21.16     The state auditor shall inquire into the accounting and 
 21.17  budgeting systems of all local units of government and shall 
 21.18  prescribe suitable systems of accounts and budgeting, and forms, 
 21.19  books, and instructions concerning the same.  The state auditor 
 21.20  may prescribe standards, policies, and computer protocols for 
 21.21  transmitting local government financial reporting data to state 
 21.22  agencies.  At the request of any local unit of government the 
 21.23  state auditor may install such systems.  The state auditor shall 
 21.24  recommend a form for order- and warrant-checks of all local 
 21.25  units of government which shall conform, so far as consistent 
 21.26  with statutory and charter requirements, to approved banking 
 21.27  practice in order to facilitate handling of such instruments by 
 21.28  banks and other depositories. 
 21.29     Sec. 3.  Minnesota Statutes 1996, section 10A.02, 
 21.30  subdivision 5, is amended to read: 
 21.31     Subd. 5.  The board, with the advice and consent of the 
 21.32  senate, shall appoint an executive director who shall be in the 
 21.33  unclassified service.  The board may also employ and prescribe 
 21.34  the duties of other permanent or temporary employees in the 
 21.35  unclassified service as may be necessary to administer this 
 21.36  chapter, subject to appropriation.  The executive director and 
 22.1   all other employees shall serve at the pleasure of the board.  
 22.2   Expenses of the board shall be approved by the chair or such 
 22.3   other member as the rules of the board may provide and the 
 22.4   expenses shall then be paid in the same manner as other state 
 22.5   expenses are paid.  
 22.6      Sec. 4.  [14.002] [STATE REGULATORY POLICY.] 
 22.7      Whenever feasible, state agencies shall develop rules and 
 22.8   regulatory programs that emphasize superior achievement in 
 22.9   meeting the agency's regulatory objectives and maximum 
 22.10  flexibility for the regulated party and the agency in meeting 
 22.11  those goals.  It is further the policy of the state that, 
 22.12  whenever possible, any budget savings realized from 
 22.13  implementation of an outcome oriented regulatory program should 
 22.14  remain with the agency. 
 22.15     Sec. 5.  Minnesota Statutes 1996, section 14.05, 
 22.16  subdivision 5, is amended to read: 
 22.17     Subd. 5.  [REVIEW AND REPEAL OF RULES.] (a) By December 1 
 22.18  of each year, an agency shall submit a list of all the rules of 
 22.19  the agency to the governor, the legislative coordinating 
 22.20  commission to review administrative rules, the funding 
 22.21  committees and divisions with jurisdiction over that agency's 
 22.22  budget, and the revisor of statutes.  The a list must identify 
 22.23  of any rules of the agency that are obsolete and should be 
 22.24  repealed, unnecessary, or duplicative of other state or federal 
 22.25  statutes or rules.  The list must also include an explanation of 
 22.26  why the rule is obsolete, unnecessary, or duplicative of other 
 22.27  state or federal statutes or rules and the agency's timetable 
 22.28  for repeal of the rule.  A report submitted under this section 
 22.29  must be signed by the person in the agency who is responsible 
 22.30  for identifying and initiating the repeal of obsolete rules.  
 22.31  The report must also identify the status of any rules identified 
 22.32  in the prior year's report as obsolete, unnecessary, or 
 22.33  duplicative.  
 22.34     (b) All rules of an agency that does not submit the list 
 22.35  required by this section for two consecutive years are repealed 
 22.36  on June 1 of the second year after the second omitted report was 
 23.1   due.  Notice of the repeal of rules under this paragraph shall 
 23.2   be published by the agency in the State Register within 30 days 
 23.3   of the effective date of the repeal.  Failure to publish the 
 23.4   notice does not affect the invalidity of the rules. 
 23.5      Sec. 6.  Minnesota Statutes 1996, section 14.131, is 
 23.6   amended to read: 
 23.7      14.131 [STATEMENT OF NEED AND REASONABLENESS.] 
 23.8      Before the agency orders the publication of a rulemaking 
 23.9   notice required by section 14.14, subdivision 1a, the agency 
 23.10  must prepare, review, and make available for public review a 
 23.11  statement of the need for and reasonableness of the rule.  The 
 23.12  statement of need and reasonableness must be prepared under 
 23.13  rules adopted by the chief administrative law judge and must 
 23.14  include the following to the extent the agency, through 
 23.15  reasonable effort, can ascertain this information: 
 23.16     (1) a description of the classes of persons who probably 
 23.17  will be affected by the proposed rule, including classes that 
 23.18  will bear the costs of the proposed rule and classes that will 
 23.19  benefit from the proposed rule; 
 23.20     (2) the probable costs to the agency and to any other 
 23.21  agency of the implementation and enforcement of the proposed 
 23.22  rule and any anticipated effect on state revenues; 
 23.23     (3) a determination of whether there are less costly 
 23.24  methods or less intrusive methods for achieving the purpose of 
 23.25  the proposed rule; 
 23.26     (4) a description of any alternative methods for achieving 
 23.27  the purpose of the proposed rule that were seriously considered 
 23.28  by the agency and the reasons why they were rejected in favor of 
 23.29  the proposed rule; 
 23.30     (5) the probable costs of complying with the proposed rule; 
 23.31  and 
 23.32     (6) an assessment of any differences between the proposed 
 23.33  rule and existing federal regulations and a specific analysis of 
 23.34  the need for and reasonableness of each difference.  
 23.35     For rules setting, adjusting, or establishing regulatory, 
 23.36  licensure, or other charges for goods and services, the 
 24.1   statement of need and reasonableness must include the comments 
 24.2   and recommendations of the commissioner of finance and must 
 24.3   address any fiscal and policy concerns raised during the review 
 24.4   process, as required by section 16A.1285. 
 24.5      The statement must describe how the agency, in developing 
 24.6   the rules, considered and implemented the legislative policy 
 24.7   supporting performance-based regulatory systems set forth in 
 24.8   section 14.002. 
 24.9      The statement must also describe the agency's efforts to 
 24.10  provide additional notification to persons or classes of persons 
 24.11  who may be affected by the proposed rule or must explain why 
 24.12  these efforts were not made. 
 24.13     The agency shall send a copy of the statement of need and 
 24.14  reasonableness to the legislative commission to review 
 24.15  administrative rules when it becomes available for public review.
 24.16     Sec. 7.  Minnesota Statutes 1996, section 16A.10, 
 24.17  subdivision 2, is amended to read: 
 24.18     Subd. 2.  [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of 
 24.19  each even-numbered year, an agency must file the following with 
 24.20  the commissioner:  
 24.21     (1) budget and departmental earnings estimates for the most 
 24.22  recent and current fiscal years; 
 24.23     (2) its upcoming biennial budget and departmental earnings 
 24.24  estimates; 
 24.25     (3) a comprehensive and integrated statement of agency 
 24.26  missions and outcome and performance measures; and 
 24.27     (4) a concise explanation of any planned changes in the 
 24.28  level of services or new activities. 
 24.29     The commissioner shall prepare and file the budget 
 24.30  estimates for an agency failing to file them.  By November 30, 
 24.31  the commissioner shall send the final budget format, 
 24.32  departmental earnings report, agency budget plans or requests 
 24.33  for the next biennium, and copies of the filed material to the 
 24.34  ways and means and finance committees, except that the 
 24.35  commissioner shall not be required to transmit information that 
 24.36  identifies executive branch budget decision items.  At this 
 25.1   time, a list of each employee's name, title, and salary must be 
 25.2   available to the legislature, either on paper or through 
 25.3   electronic retrieval. 
 25.4      Sec. 8.  Minnesota Statutes 1996, section 16A.11, 
 25.5   subdivision 1, is amended to read: 
 25.6      Subdivision 1.  [WHEN.] The governor shall submit a 
 25.7   four-part budget to the legislature.  Parts one and two, the 
 25.8   budget message and detailed operating budget, must be submitted 
 25.9   by the fourth Tuesday in January in each odd-numbered year.  
 25.10  Part three, the detailed recommendations as to capital 
 25.11  expenditure, must be submitted as follows:  agency capital 
 25.12  budget requests by June 15 July 1 of each odd-numbered year; 
 25.13  preliminary governor's recommendations by September 1 of each 
 25.14  odd-numbered year;, and final governor's recommendations by 
 25.15  February 1 of each even-numbered year.  Part four, the detailed 
 25.16  recommendations as to information technology expenditure, must 
 25.17  be submitted at the same time the governor submits the budget 
 25.18  message to the legislature. 
 25.19     Sec. 9.  Minnesota Statutes 1996, section 16A.11, 
 25.20  subdivision 3, is amended to read: 
 25.21     Subd. 3.  [PART TWO:  DETAILED BUDGET.] Part two of the 
 25.22  budget, the detailed budget estimates both of expenditures and 
 25.23  revenues, shall contain any statements on the financial plan 
 25.24  which the governor believes desirable or which may be required 
 25.25  by the legislature.  Part of the budget must be prepared using 
 25.26  performance-based budgeting concepts.  In this subdivision, 
 25.27  "performance-based budgeting" means a budget system that 
 25.28  identifies agency outcomes and results and provides 
 25.29  comprehensive information regarding actual and proposed changes 
 25.30  in funding and outcomes.  The detailed estimates shall include 
 25.31  the budget plan of each agency arranged in tabular form so it 
 25.32  may readily be compared with the governor's budget for each 
 25.33  agency.  The budget plan of each agency shall include a separate 
 25.34  line listing the total number of professional and technical 
 25.35  contracts and the total cost of those contracts for the prior 
 25.36  biennium and the projected number of professional and technical 
 26.1   contracts and the projected costs of those contracts for the 
 26.2   upcoming biennium.  They shall also include, as part of each 
 26.3   agency's organization chart, a summary of the personnel employed 
 26.4   by the agency, showing the full-time equivalent positions for 
 26.5   the current biennium, and the number of full-time equivalent 
 26.6   employees of all kinds employed by the agency on June 30 of the 
 26.7   last complete fiscal year. 
 26.8      Sec. 10.  Minnesota Statutes 1996, section 16A.11, 
 26.9   subdivision 3c, is amended to read: 
 26.10     Subd. 3c.  [PART FOUR; DETAILED INFORMATION TECHNOLOGY 
 26.11  BUDGET.] The detailed information technology budget must include 
 26.12  recommendations for information technology projects to be funded 
 26.13  during the next biennium and planning estimates for an 
 26.14  additional two biennia.  It must be submitted with projects 
 26.15  ranked in order of importance among all projects as determined 
 26.16  by the governor. 
 26.17     Sec. 11.  Minnesota Statutes 1996, section 16A.1285, 
 26.18  subdivision 3, is amended to read: 
 26.19     Subd. 3.  [DUTIES OF THE COMMISSIONER OF FINANCE.] The 
 26.20  commissioner of finance shall classify, monitor, analyze, and 
 26.21  report all departmental earnings that fall within the definition 
 26.22  established in subdivision 1.  Specifically, the commissioner 
 26.23  shall: 
 26.24     (1) establish and maintain a classification system that 
 26.25  clearly defines and distinguishes categories and types of 
 26.26  departmental earnings and takes into account the purpose of the 
 26.27  various earnings types and the extent to which various earnings 
 26.28  types serve a public or private interest; 
 26.29     (2) prepare a biennial report that documents collection 
 26.30  costs, purposes, and yields of all departmental earnings, the 
 26.31  report to be submitted to the legislature on or before November 
 26.32  30 of each even-numbered year the fourth Tuesday in January in 
 26.33  each odd-numbered year and to include estimated data for the 
 26.34  year in which the report is prepared, actual data for the two 
 26.35  years immediately before, and estimates for the two years 
 26.36  immediately following; and 
 27.1      (3) prepare and maintain a detailed directory of all 
 27.2   departmental earnings. 
 27.3      Sec. 12.  Minnesota Statutes 1996, section 16A.129, 
 27.4   subdivision 3, is amended to read: 
 27.5      Subd. 3.  [CASH ADVANCES.] When the operations of any 
 27.6   nongeneral fund account would be impeded by projected cash 
 27.7   deficiencies resulting from delays in the receipt of grants, 
 27.8   dedicated income, or other similar receivables, and when the 
 27.9   deficiencies would be corrected within the budget period 
 27.10  involved, the commissioner of finance may use general fund cash 
 27.11  reserves to meet cash demands.  If funds are transferred from 
 27.12  the general fund to meet cash flow needs, the cash flow 
 27.13  transfers must be returned to the general fund as soon as 
 27.14  sufficient cash balances are available in the account to which 
 27.15  the transfer was made.  Any interest earned on general fund cash 
 27.16  flow transfers accrues to the general fund and not to the 
 27.17  accounts or funds to which the transfer was made.  The 
 27.18  commissioner may advance general fund cash reserves to 
 27.19  nongeneral fund accounts where the receipts from other 
 27.20  governmental units cannot be collected within the budget period. 
 27.21     Sec. 13.  Minnesota Statutes 1996, section 16A.15, 
 27.22  subdivision 3, is amended to read: 
 27.23     Subd. 3.  [ALLOTMENT AND ENCUMBRANCE.] (a) A payment may 
 27.24  not be made without prior obligation.  An obligation may not be 
 27.25  incurred against any fund, allotment, or appropriation unless 
 27.26  the commissioner has certified a sufficient unencumbered balance 
 27.27  or the accounting system shows sufficient allotment or 
 27.28  encumbrance balance in the fund, allotment, or appropriation to 
 27.29  meet it.  The commissioner shall determine when the accounting 
 27.30  system may be used to incur obligations without the 
 27.31  commissioner's certification of a sufficient unencumbered 
 27.32  balance.  An expenditure or obligation authorized or incurred in 
 27.33  violation of this chapter is invalid and ineligible for payment 
 27.34  until made valid.  A payment made in violation of this chapter 
 27.35  is illegal.  An employee authorizing or making the payment, or 
 27.36  taking part in it, and a person receiving any part of the 
 28.1   payment, are jointly and severally liable to the state for the 
 28.2   amount paid or received.  If an employee knowingly incurs an 
 28.3   obligation or authorizes or makes an expenditure in violation of 
 28.4   this chapter or takes part in the violation, the violation is 
 28.5   just cause for the employee's removal by the appointing 
 28.6   authority or by the governor if an appointing authority other 
 28.7   than the governor fails to do so.  In the latter case, the 
 28.8   governor shall give notice of the violation and an opportunity 
 28.9   to be heard on it to the employee and to the appointing 
 28.10  authority.  A claim presented against an appropriation without 
 28.11  prior allotment or encumbrance may be made valid on 
 28.12  investigation, review, and approval by the commissioner agency 
 28.13  head in accordance with the commissioner's policy, if the 
 28.14  services, materials, or supplies to be paid for were actually 
 28.15  furnished in good faith without collusion and without intent to 
 28.16  defraud.  The commissioner may then draw a warrant to pay the 
 28.17  claim just as properly allotted and encumbered claims are paid. 
 28.18     (b) The commissioner may approve payment for materials and 
 28.19  supplies in excess of the obligation amount when increases are 
 28.20  authorized by section 16B.07, subdivision 2. 
 28.21     (c) To minimize potential construction delay claims, an 
 28.22  agency with a project funded by a building appropriation may 
 28.23  allow a contractor to proceed with supplemental work within the 
 28.24  limits of the appropriation before money is encumbered.  Under 
 28.25  this circumstance, the agency may requisition funds and allow 
 28.26  contractors to expeditiously proceed with a construction 
 28.27  sequence.  While the contractor is proceeding, the agency shall 
 28.28  immediately act to encumber the required funds. 
 28.29     Sec. 14.  [16A.151] [LAWSUIT PROCEEDS.] 
 28.30     Money received by the state as a result of litigation or 
 28.31  settlements that cannot be classified as federal funds or gift 
 28.32  funds may be deposited in a special revenue account with the 
 28.33  approval of the commissioner.  The commissioner shall promptly 
 28.34  notify the chairs of the house ways and means and senate finance 
 28.35  committees that the money has been received.  Up to $250,000 of 
 28.36  the money deposited in a special revenue account is appropriated 
 29.1   for the purpose defined in the litigation or settlement.  
 29.2   Unobligated balances in these accounts may be carried forward to 
 29.3   subsequent fiscal years with the approval of the commissioner. 
 29.4      Sec. 15.  Minnesota Statutes 1996, section 16B.19, 
 29.5   subdivision 2b, is amended to read: 
 29.6      Subd. 2b.  [DESIGNATION OF TARGETED GROUPS.] (a) The 
 29.7   commissioner of administration shall periodically designate 
 29.8   businesses that are majority owned and operated by women, 
 29.9   persons with a substantial physical disability, or specific 
 29.10  minorities as targeted group businesses within purchasing 
 29.11  categories the commissioner determines.  A group must be 
 29.12  targeted within a purchasing category if the commissioner 
 29.13  determines there is a statistical disparity between the 
 29.14  percentage of purchasing from businesses owned by group members 
 29.15  and the representation of businesses owned by group members 
 29.16  among all businesses in the state in the purchasing category.  
 29.17  The commissioner must review public agencies' purchasing from 
 29.18  businesses owned by women, persons with a substantial physical 
 29.19  disability, and minorities at least once every two years.  The 
 29.20  commissioner must review the representation of businesses owned 
 29.21  by these groups among all businesses in the state at least once 
 29.22  every five years. 
 29.23     (b) In addition to designations under paragraph (a), an 
 29.24  individual business may be included as a targeted group business 
 29.25  if the commissioner determines that inclusion is necessary to 
 29.26  remedy discrimination against the owner based on race, gender, 
 29.27  or disability in attempting to operate a business that would 
 29.28  provide goods or service to public agencies. 
 29.29     (c) The designations of purchasing categories and 
 29.30  businesses under paragraphs (a) and (b) are not rules for 
 29.31  purposes of chapter 14, and are not subject to rulemaking 
 29.32  procedures of that chapter. 
 29.33     Sec. 16.  Minnesota Statutes 1996, section 16B.24, 
 29.34  subdivision 5, is amended to read: 
 29.35     Subd. 5.  [RENTING OUT STATE PROPERTY.] (a)  [AUTHORITY.] 
 29.36  The commissioner may rent out state property, real or personal, 
 30.1   that is not needed for public use, if the rental is not 
 30.2   otherwise provided for or prohibited by law.  The property may 
 30.3   not be rented out for more than five years at a time without the 
 30.4   approval of the state executive council and may never be rented 
 30.5   out for more than 25 years.  A rental agreement may provide that 
 30.6   the state will reimburse a tenant for a portion of capital 
 30.7   improvements that the tenant makes to state real property if the 
 30.8   state does not permit the tenant to renew the lease at the end 
 30.9   of the rental agreement. 
 30.10     (b)  [RESTRICTIONS.] Paragraph (a) does not apply to state 
 30.11  trust fund lands, other state lands under the jurisdiction of 
 30.12  the department of natural resources, lands forfeited for 
 30.13  delinquent taxes, lands acquired under section 298.22, or lands 
 30.14  acquired under section 41.56 which are under the jurisdiction of 
 30.15  the department of agriculture.  
 30.16     (c)  [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
 30.17  Chapel, located within the boundaries of Fort Snelling State 
 30.18  Park, is available for use only on payment of a rental fee.  The 
 30.19  commissioner shall establish rental fees for both public and 
 30.20  private use.  The rental fee for private use by an organization 
 30.21  or individual must reflect the reasonable value of equivalent 
 30.22  rental space.  Rental fees collected under this section must be 
 30.23  deposited in the general fund.  
 30.24     (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
 30.25  shall establish rental rates for all living accommodations 
 30.26  provided by the state for its employees.  Money collected as 
 30.27  rent by state agencies pursuant to this paragraph must be 
 30.28  deposited in the state treasury and credited to the general fund.
 30.29     (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
 30.30  AGENCIES.] The commissioner may lease portions of the 
 30.31  state-owned buildings in the capitol complex, the capitol square 
 30.32  building, the health building, the Duluth government center, and 
 30.33  the building at 1246 University Avenue, St. Paul, Minnesota, to 
 30.34  state agencies and the court administrator on behalf of the 
 30.35  judicial branch of state government and charge rent on the basis 
 30.36  of space occupied.  Notwithstanding any law to the contrary, all 
 31.1   money collected as rent pursuant to the terms of this section 
 31.2   shall be deposited in the state treasury.  Money collected as 
 31.3   rent to recover the depreciation cost and interest costs of a 
 31.4   building built with state dedicated funds shall be credited to 
 31.5   the dedicated fund which funded the original acquisition or 
 31.6   construction.  All other money received shall be credited to the 
 31.7   general services revolving fund.  
 31.8      Sec. 17.  Minnesota Statutes 1996, section 16B.35, is 
 31.9   amended by adding a subdivision to read: 
 31.10     Subd. 5.  [CONTRACTOR'S BOND NOT REQUIRED.] Sections 574.26 
 31.11  to 574.32 do not apply to this section. 
 31.12     Sec. 18.  Minnesota Statutes 1996, section 16B.70, 
 31.13  subdivision 2, is amended to read: 
 31.14     Subd. 2.  [COLLECTION AND REPORTS.] All permit surcharges 
 31.15  must be collected by each municipality and a portion of them 
 31.16  remitted to the state.  Each municipality having a population 
 31.17  greater than 20,000 people shall prepare and submit to the 
 31.18  commissioner once a month a report of fees and surcharges on 
 31.19  fees collected during the previous month but shall retain the 
 31.20  greater of two percent or that amount collected up to $25 to 
 31.21  apply against the administrative expenses the municipality 
 31.22  incurs in collecting the surcharges.  All other municipalities 
 31.23  shall submit the report and surcharges on fees once a quarter 
 31.24  but shall retain the greater of four percent or that amount 
 31.25  collected up to $25 to apply against the administrative expenses 
 31.26  the municipalities incur in collecting the surcharges.  The 
 31.27  report, which must be in a form prescribed by the commissioner, 
 31.28  must be submitted together with a remittance covering the 
 31.29  surcharges collected by the 15th day following the month or 
 31.30  quarter in which the surcharges are collected.  All money 
 31.31  collected by the commissioner through surcharges and other fees 
 31.32  prescribed by sections 16B.59 to 16B.75, which are payable to 
 31.33  the state, must be paid shall be deposited in the state 
 31.34  government special revenue fund and is appropriated to the 
 31.35  commissioner who shall deposit them in the state treasury for 
 31.36  credit to a special revenue fund for the purpose of 
 32.1   administering and enforcing the state building code under 
 32.2   sections 16B.59 to 16B.75. 
 32.3      Sec. 19.  [43A.183] [PAYMENT OF SALARY DIFFERENTIAL FOR 
 32.4   RESERVE FORCES ON ACTIVE DUTY.] 
 32.5      Each agency head shall pay to each eligible member of the 
 32.6   reserve components of the armed forces of the United States an 
 32.7   amount equal to the difference between the member's basic active 
 32.8   duty military salary and the salary the member would be paid as 
 32.9   an active state employee, including any adjustments the member 
 32.10  would have received if not on leave of absence.  This payment 
 32.11  may be made only to a person whose basic active duty military 
 32.12  salary is less than the salary the person would be paid as an 
 32.13  active state employee.  Payments must be made at the intervals 
 32.14  at which the member received pay as a state employee.  Back pay 
 32.15  authorized by this section may be paid in a lump sum.  Pay under 
 32.16  this section may not extend beyond four years from the date the 
 32.17  employee was called to active duty plus any additional time in 
 32.18  each case that the employee may be required to serve under law. 
 32.19     An eligible member of the reserve components of the armed 
 32.20  forces of the United States is a reservist or national guard 
 32.21  member who was an employee of the state of Minnesota at the time 
 32.22  the member was called to active duty and who was or is called to 
 32.23  active duty after August 1, 1994, for service in Haiti relating 
 32.24  to political unrest and a need to safeguard election processes. 
 32.25     For the purposes of this section, an employee of the state 
 32.26  is an employee of the executive, judicial, or legislative branch 
 32.27  of state government or an employee of the Minnesota state 
 32.28  retirement system, the public employee retirement association, 
 32.29  or the teachers retirement association. 
 32.30     The commissioner of employee relations and the commissioner 
 32.31  of finance shall adopt procedures required to implement this 
 32.32  section.  The procedures are exempt from chapter 14. 
 32.33     This section expires June 30, 2002. 
 32.34     Sec. 20.  Minnesota Statutes 1996, section 176.611, is 
 32.35  amended by adding a subdivision to read: 
 32.36     Subd. 2a.  [SETTLEMENT AND CONTINGENCY RESERVE ACCOUNT.] To 
 33.1   reduce long-term costs, minimize impairment to agency operations 
 33.2   and budgets, and distribute risk of one-time catastrophic 
 33.3   claims, the commissioner shall maintain a separate account 
 33.4   within the state compensation revolving fund.  The account shall 
 33.5   be used to pay for lump-sum or annuitized settlements, 
 33.6   structured claim settlements, and one-time large, legal, 
 33.7   catastrophic medical, indemnity, or other irregular claim costs 
 33.8   that might otherwise pose a significant burden for agencies.  
 33.9   The commissioner, with the approval of the commissioner of 
 33.10  finance, may establish criteria and procedures for payment from 
 33.11  the account on an agency's behalf.  The commissioner may assess 
 33.12  agencies on a reimbursement or premium basis from time-to-time 
 33.13  to ensure adequate account reserves.  The account consists of 
 33.14  appropriations from the general fund, receipts from billings to 
 33.15  agencies, and credited investment gains or losses attributable 
 33.16  to balances in the account.  The state board of investment shall 
 33.17  invest the assets of the account according to section 11A.24. 
 33.18     Sec. 21.  Minnesota Statutes 1996, section 176.611, is 
 33.19  amended by adding a subdivision to read: 
 33.20     Subd. 3b.  [APPROPRIATION; WORKERS' COMPENSATION PREMIUMS.] 
 33.21  The amount necessary to pay premiums for coverage by the 
 33.22  workers' compensation reinsurance association under section 
 33.23  79.34 is appropriated annually from the general fund to the 
 33.24  commissioner of employee relations. 
 33.25     Sec. 22.  Minnesota Statutes 1996, section 240A.08, is 
 33.26  amended to read: 
 33.27     240A.08 [APPROPRIATION.] 
 33.28     (a) $750,000 is appropriated annually from the general fund 
 33.29  to the Minnesota amateur sports commission for the purpose of 
 33.30  entering into long-term leases, use, or other agreements with 
 33.31  the metropolitan sports facilities commission for the conduct of 
 33.32  amateur sports activities at the basketball and hockey arena, 
 33.33  consistent with the purposes set forth in this chapter, 
 33.34  including (1) stimulating and promoting amateur sports, (2) 
 33.35  promoting physical fitness by promoting participation in sports, 
 33.36  (3) promoting the development of recreational amateur sport 
 34.1   opportunities and activities, and (4) promoting local, regional, 
 34.2   national, and international amateur sport competitions and 
 34.3   events.  The amateur sports commission shall determine what 
 34.4   constitutes amateur sports activities as provided in this 
 34.5   chapter as of March 1, 1995.  The metropolitan sports facilities 
 34.6   commission may shall allocate at least 25 but no more than 50 
 34.7   dates a year for the conduct of amateur sports activities at the 
 34.8   basketball and hockey arena by the amateur sports commission.  
 34.9   At least 12 of the dates must be on a Friday, Saturday, or 
 34.10  Sunday.  The full and total amount that the Minnesota amateur 
 34.11  sports commission must pay to the metropolitan sports facilities 
 34.12  commission for the use of the basketball and hockey arena is the 
 34.13  amount of the appropriation specified in this paragraph, and 
 34.14  that amount must cover all fixed and all ordinary and necessary 
 34.15  event-related expenses associated with the Minnesota amateur 
 34.16  sports commission's use of the basketball and hockey arena for 
 34.17  the specific amateur sports activity.  The amateur sports 
 34.18  commission may sell or transfer a date at the arena to another 
 34.19  group for any purpose.  Revenue from sale of these dates is 
 34.20  appropriated to the amateur sports commission for purposes 
 34.21  listed in section 240A.04.  If any amateur sports activities 
 34.22  conducted by the amateur sports commission at the basketball and 
 34.23  hockey arena are restricted to participants of one gender, an 
 34.24  equal number of activities on comparable days of the week must 
 34.25  be conducted for participants of the other gender, but not 
 34.26  necessarily in the same year.  The legislature reserves the 
 34.27  right to repeal or amend this appropriation, and does not intend 
 34.28  this appropriation to create public debt. 
 34.29     (b) The amateur sports commission shall not transmit to the 
 34.30  operator of the basketball and hockey arena payment of is not 
 34.31  liable for any ordinary or necessary event-related costs or 
 34.32  expenses, including, but not limited to, personnel, labor, 
 34.33  services, equipment, utilities, or supplies attributable to the 
 34.34  events beyond the amount appropriated in paragraph (a).  
 34.35  Extraordinary event-related costs and expenses may not be billed 
 34.36  to the amateur sports commission, unless and until the operator 
 35.1   has demonstrated, to the satisfaction of the amateur sports 
 35.2   commission, the basis for each specific extraordinary cost or 
 35.3   expense and the means by which the costs and expenses were 
 35.4   determined. 
 35.5      (c) The amateur sports commission may use any ticket system 
 35.6   as may be in place from time to time at the basketball and 
 35.7   hockey arena, provided that any royalty or rebate fees or 
 35.8   charges or surcharges on tickets received by the operator of the 
 35.9   arena from third parties must be credited against extraordinary 
 35.10  event-related costs or expenses. 
 35.11     (d) In the establishment of extraordinary event-related 
 35.12  costs to be imposed upon the amateur sports commission, the 
 35.13  operator of the basketball and hockey arena shall provide the 
 35.14  amateur sports commission with the maximum discount that the 
 35.15  operator has supplied to any other sponsor of a similar amateur 
 35.16  sports event in the arena within the 180-day period immediately 
 35.17  preceding the date of the amateur sports commission event. 
 35.18     (e) The amateur sports commission must report by August 1 
 35.19  each year to the chairs of the house and senate state government 
 35.20  finance divisions on compliance with this section and on the 
 35.21  total value of dates and ancillary services, and revenue derived 
 35.22  from resale of dates, during the previous state fiscal year. 
 35.23     (f) The attorney general, on behalf of the amateur sports 
 35.24  commission, must pursue collection of monetary damages from the 
 35.25  operator of the arena if the operator fails to comply with the 
 35.26  requirements of this section. 
 35.27     (g) The books, records, documents, accounting procedures, 
 35.28  and practices of the metropolitan sports facilities commission, 
 35.29  the Minneapolis community development agency, and any 
 35.30  corporation with which the Minnesota amateur sports commission 
 35.31  may contract for use of the basketball and hockey arena are 
 35.32  available for review by the Minnesota amateur sports commission, 
 35.33  the legislative auditor, and the chairs of the state government 
 35.34  finance divisions of the senate and the house of 
 35.35  representatives, subject to chapter 13 and section 473.598, 
 35.36  subdivision 4. 
 36.1      Sec. 23.  [260.127] [TEEN COURT PROGRAM.] 
 36.2      Subdivision 1.  [DEFINITIONS.] For purposes of this 
 36.3   section, the following terms have the meanings given. 
 36.4      (a) "Minor offense" means: 
 36.5      (1) a juvenile petty offense; 
 36.6      (2) a petty misdemeanor; or 
 36.7      (3) any misdemeanor, other than a misdemeanor-level 
 36.8   violation of section 588.20, 609.224, 609.2242, 609.324, 
 36.9   609.563, 609.576, 609.66, or 617.23, a major traffic offense, or 
 36.10  an adult traffic offense, as defined in section 260.193. 
 36.11     (b) "Teen" means an individual who is at least 10 years old 
 36.12  but less than 18 years old. 
 36.13     (c) "Teen court" and "teen court program" mean an 
 36.14  alternative procedure under which local law enforcement, county 
 36.15  attorneys, schools, or probation agencies may divert from the 
 36.16  juvenile court system a teen who allegedly has committed a minor 
 36.17  offense, on condition that the teen voluntarily appears before 
 36.18  and receives a disposition from a jury of the teen's peers and 
 36.19  successfully completes the terms and conditions of the 
 36.20  disposition.  These programs also may be used by schools as 
 36.21  alternatives to formal school disciplinary proceedings.  
 36.22     Subd. 2.  [SUPREME COURT RULES.] The supreme court is 
 36.23  requested to adopt rules and procedures to govern the teen court 
 36.24  program that are consistent with this section. 
 36.25     Subd. 3.  [APPLICATION TO ESTABLISH TEEN COURT.] (a) Any 
 36.26  group of two or more adult sponsors may apply to the office of 
 36.27  strategic and long-range planning to establish a teen court.  
 36.28  These sponsors must be affiliated with an agency, entity, or 
 36.29  other organized program or group.  
 36.30     (b) An application to establish a teen court must include: 
 36.31     (1) the names, addresses, and telephone numbers of two or 
 36.32  more adult sponsors and a description of the entity, agency, or 
 36.33  other organized program or group with which the adult sponsors 
 36.34  are affiliated; 
 36.35     (2) the names, addresses, and telephone numbers of all 
 36.36  teens who have signed letters of commitment to participate 
 37.1   voluntarily as teen court members in the teen court program; 
 37.2      (3) a certification from the adult sponsors that adequate 
 37.3   adult sponsorship exists and that there are a sufficient number 
 37.4   of teen volunteers to make the functioning of the teen court 
 37.5   feasible and meaningful; and 
 37.6      (4) a letter of support from the judicial district court 
 37.7   administrator agreeing to help the teen court track the 
 37.8   recidivism rates of teen court participants. 
 37.9      Subd. 4.  [REFERRAL TO TEEN COURT PROGRAM.] Once the teen 
 37.10  court program has been established, it may receive referrals for 
 37.11  eligible teens from local law enforcement, county attorneys, 
 37.12  school officials, and probation agencies.  The process of 
 37.13  referral is to be established by the individual teen court 
 37.14  programs, in coordination with other established teen court 
 37.15  programs in the judicial district. 
 37.16     Subd. 5.  [FEE.] The teen court program may require a teen 
 37.17  to pay a nonrefundable fee to cover the costs of administering 
 37.18  the program.  This fee must be reduced or waived for a 
 37.19  participant who does not have the ability to pay the fee. 
 37.20     Subd. 6.  [TEEN COURT PROGRAM COMPONENTS.] (a) Prior to a 
 37.21  teen's participation in the teen court program, a teen court 
 37.22  sponsor or the referring source must contact the victim, if any, 
 37.23  of the offense, or make a good faith attempt to contact the 
 37.24  victim, if any, and the victim must be advised that the victim 
 37.25  may participate in the teen court proceedings. 
 37.26     (b) Prior to a teen court's imposition of dispositions, it 
 37.27  must establish a range of dispositional alternatives for 
 37.28  offenses which is appropriate to the teen court's community.  
 37.29  These dispositions may include the following: 
 37.30     (1) community service; 
 37.31     (2) mandatory participation in appropriate counseling, 
 37.32  appropriate treatment, law-related educational classes, or other 
 37.33  educational programs; 
 37.34     (3) a requirement that the teen defendant participate as a 
 37.35  juror in future proceedings before the teen court; 
 37.36     (4) restitution, where appropriate; and 
 38.1      (5) a fine, not to exceed the amount permitted in section 
 38.2   260.195.  The fine permitted in section 260.185 may only be 
 38.3   imposed for misdemeanor level offenses.  
 38.4      The teen court does not have the power to place a teen 
 38.5   outside the home. 
 38.6      (c) The teen court program may be used only where: 
 38.7      (1) the teen acknowledges responsibility for the offense; 
 38.8      (2) the teen voluntarily agrees to participate in the teen 
 38.9   court program; 
 38.10     (3) the judge of the teen court is a judge or an attorney 
 38.11  admitted to practice law in the state of Minnesota; and 
 38.12     (4) the teen's parent or legal guardian accompanies the 
 38.13  teen in all teen court proceedings. 
 38.14     (d) The teen court shall notify the referring source as 
 38.15  soon as possible upon discovery that the teen has failed to 
 38.16  comply with any part of the disposition imposed under paragraph 
 38.17  (b) of this subdivision.  Juvenile court proceedings may be 
 38.18  commenced against a teen who fails to comply with the 
 38.19  disposition under paragraph (b) of this subdivision. 
 38.20     Subd. 7.  [EVALUATION AND REPORTS.] (a) The results of all 
 38.21  proceedings in teen court must be reported to the office of 
 38.22  strategic and long-range planning on a form provided by that 
 38.23  office.  The teen court must submit the report no later than 
 38.24  July 15 for all activity during the first six months of the 
 38.25  calendar year and by January 15 for all activity during the last 
 38.26  six months of the preceding calendar year.  Each report must 
 38.27  include the following: 
 38.28     (1) the number of cases handled by the teen court, 
 38.29  including a breakdown of the number of cases from each referring 
 38.30  agency; 
 38.31     (2) a list of the offenses for which the teen court imposed 
 38.32  a disposition, including a breakdown showing the number of teen 
 38.33  court participants committing each type of offense; 
 38.34     (3) a list of the dispositions imposed by the teen court, 
 38.35  including a breakdown showing the number of times each 
 38.36  particular disposition was imposed; and 
 39.1      (4) information on the cases that were referred back to the 
 39.2   referring agency under subdivision 6, paragraph (d). 
 39.3      (b) Each teen court shall report to the office of strategic 
 39.4   and long-range planning by June 30 each year on its progress in 
 39.5   achieving outcome measures and indicators.  This report must 
 39.6   include an analysis of recidivism rates for teen court 
 39.7   participants, based upon a method for measuring these rates as 
 39.8   determined by the office of strategic and long-range planning. 
 39.9      (c) The office of strategic and long-range planning shall 
 39.10  assist teen court programs in developing outcome measures and 
 39.11  indicators.  These outcome measures and indicators must be 
 39.12  established before any teen court begins to impose dispositions 
 39.13  and must allow for both evaluation of each teen court program 
 39.14  and for statewide evaluation of the teen court program. 
 39.15     Subd. 8.  [ADMINISTRATION.] The office of strategic and 
 39.16  long-range planning has authority to administer funds to teen 
 39.17  court programs that comply with this section and the supreme 
 39.18  court rules adopted under this section.  The office of strategic 
 39.19  and long-range planning may receive and administer public and 
 39.20  private funds for the purpose of this section. 
 39.21     Sec. 24.  Minnesota Statutes 1996, section 327.33, 
 39.22  subdivision 2, is amended to read: 
 39.23     Subd. 2.  [FEES.] The commissioner shall by rule establish 
 39.24  reasonable fees for seals, installation seals and inspections 
 39.25  which are sufficient to cover all costs incurred in the 
 39.26  administration of sections 327.31 to 327.35.  The commissioner 
 39.27  shall also establish by rule a monitoring inspection fee in an 
 39.28  amount that will comply with the secretary's fee distribution 
 39.29  program.  This monitoring inspection fee shall be an amount paid 
 39.30  by the manufacturer for each manufactured home produced in 
 39.31  Minnesota.  The monitoring inspection fee shall be paid by the 
 39.32  manufacturer to the secretary.  The rules of the fee 
 39.33  distribution program require the secretary to distribute the 
 39.34  fees collected from all manufactured home manufacturers among 
 39.35  states approved and conditionally approved based on the number 
 39.36  of new manufactured homes whose first location after leaving the 
 40.1   manufacturer is on the premises of a distributor, dealer or 
 40.2   purchaser in that state.  All fees received money collected by 
 40.3   the commissioner shall be deposited in the state treasury and 
 40.4   credited to the general fund through fees prescribed by sections 
 40.5   327.31 to 327.36 shall be deposited in the state government 
 40.6   special revenue fund and is appropriated to the commissioner for 
 40.7   the purpose of administering and enforcing the manufactured home 
 40.8   building code under sections 327.31 to 327.36. 
 40.9      Sec. 25.  Minnesota Statutes 1996, section 327B.04, 
 40.10  subdivision 7, is amended to read: 
 40.11     Subd. 7.  [FEES; LICENSES; WHEN GRANTED.] Each application 
 40.12  for a license or license renewal must be accompanied by a fee in 
 40.13  an amount established by the commissioner by rule pursuant to 
 40.14  section 327B.10, which shall be paid into the state treasury and 
 40.15  credited to the general fund.  The fees shall be set in an 
 40.16  amount which over the fiscal biennium will produce revenues 
 40.17  approximately equal to the expenses which the commissioner 
 40.18  expects to incur during that fiscal biennium while administering 
 40.19  and enforcing sections 327B.01 to 327B.12.  All money collected 
 40.20  by the commissioner through fees prescribed in sections 327B.01 
 40.21  to 327B.12 shall be deposited in the state government special 
 40.22  revenue fund and is appropriated to the commissioner for 
 40.23  purposes of administering and enforcing the provisions of this 
 40.24  chapter.  The commissioner shall grant or deny a license 
 40.25  application or a renewal application within 60 days of its 
 40.26  filing.  If the license is granted, the commissioner shall 
 40.27  license the applicant as a dealer or manufacturer for the 
 40.28  remainder of the calendar year.  Upon application by the 
 40.29  licensee, the commissioner shall renew the license for a two 
 40.30  year period, if:  
 40.31     (a) the renewal application satisfies the requirements of 
 40.32  subdivisions 3 and 4; 
 40.33     (b) the renewal applicant has made all listings, 
 40.34  registrations, notices and reports required by the commissioner 
 40.35  during the preceding year; and 
 40.36     (c) the renewal applicant has paid all fees owed pursuant 
 41.1   to sections 327B.01 to 327B.12 and all taxes, arrearages, and 
 41.2   penalties owed to the state.  
 41.3      Sec. 26.  Minnesota Statutes 1996, section 349.163, 
 41.4   subdivision 4, is amended to read: 
 41.5      Subd. 4.  [INSPECTION OF MANUFACTURERS.] Employees of the 
 41.6   board and the division of gambling enforcement may inspect the 
 41.7   books, records, inventory, and business premises of a licensed 
 41.8   manufacturer without notice during the normal business hours of 
 41.9   the manufacturer.  The board may charge a manufacturer for the 
 41.10  actual cost of conducting an inspection of the manufacturer's 
 41.11  facilities provided (1) the board provides the manufacturer with 
 41.12  reasonable notice of the inspections, and (2) the amount charged 
 41.13  to the manufacturer for the cost of inspections does not exceed 
 41.14  $7,500 in any year.  The board shall deposit in a separate 
 41.15  account in the state treasury all money received as 
 41.16  reimbursement for the costs of inspections.  Money in the 
 41.17  account is appropriated to the board to pay the costs of the 
 41.18  inspections. 
 41.19     Sec. 27.  Minnesota Statutes 1996, section 356.865, 
 41.20  subdivision 3, is amended to read: 
 41.21     Subd. 3.  [COST STATE APPROPRIATION.] The cost of the 
 41.22  payments made under this section is the responsibility of the 
 41.23  state.  Payments under this section are the responsibility of 
 41.24  the Minneapolis employees retirement fund.  A separate state aid 
 41.25  is provided toward the level dollar amortized cost of the 
 41.26  payments.  For state fiscal years 1992 to 2001 inclusive, there 
 41.27  is appropriated annually $550,000 from the general fund to the 
 41.28  commissioner of finance to be added, in quarterly installments, 
 41.29  to the annual state contribution amount determined under section 
 41.30  422A.101, subdivision 3.  After fiscal year 2001, any difference 
 41.31  between the cumulative benefit amounts actually paid under this 
 41.32  section after fiscal year 1991 and the amounts paid to the 
 41.33  retirement fund by the state under this subdivision plus 
 41.34  investment earnings on the aid shall be included by the 
 41.35  retirement fund board and the actuary retained by the 
 41.36  legislative commission on pensions and retirement in determining 
 42.1   financial requirements of the fund and contributions under 
 42.2   section 422A.101. 
 42.3      Sec. 28.  Minnesota Statutes 1996, section 363.073, 
 42.4   subdivision 1, is amended to read: 
 42.5      Subdivision 1.  [SCOPE OF APPLICATION.] No department or 
 42.6   agency of the state shall accept any bid or proposal for a 
 42.7   contract or agreement or execute any contract or agreement for 
 42.8   goods or services in excess of $50,000 with any business having 
 42.9   more than 20 full-time employees, either within or outside this 
 42.10  state, on a single working day during the previous 12 months, 
 42.11  unless the firm or business has an affirmative action plan for 
 42.12  the employment of minority persons, women, and the disabled that 
 42.13  has been approved by the commissioner of human rights.  Receipt 
 42.14  of a certificate of compliance issued by the commissioner shall 
 42.15  signify that a firm or business has an affirmative action plan 
 42.16  that has been approved by the commissioner.  A certificate shall 
 42.17  be valid for a period of two years.  A municipality as defined 
 42.18  in section 466.01, subdivision 1, that receives state money for 
 42.19  any reason is encouraged to prepare and implement an affirmative 
 42.20  action plan for the employment of minority persons, women, and 
 42.21  the disabled and submit the plan to the commissioner of human 
 42.22  rights. 
 42.23     Sec. 29.  [465.803] [REPAYMENT OF GRANTS.] 
 42.24     Subdivision 1.  [REPAYMENT PROCEDURES.] Without regard to 
 42.25  whether a grant recipient offered to repay the grant in its 
 42.26  original application, as part of a grant awarded under section 
 42.27  465.798, 465.799, or 465.801, the board may require the grant 
 42.28  recipient to repay all or part of the grant if the board 
 42.29  determines the project funded by the grant resulted in an actual 
 42.30  savings for the participating local units of government.  The 
 42.31  grant agreement must specify how the savings are to be 
 42.32  determined and the period of time over which the savings will be 
 42.33  used to calculate a repayment requirement.  The repayment of 
 42.34  grant money under this section may not exceed an amount equal to 
 42.35  the total savings achieved through the implementation of the 
 42.36  project multiplied by the total amount of the grant divided by 
 43.1   the total budget for the project and may not exceed the total 
 43.2   amount of the original grant. 
 43.3      Subd. 2.  [BONUS POINTS.] In addition to the points awarded 
 43.4   to competitive grant applications under section 465.802, the 
 43.5   board shall award additional points to any applicant that 
 43.6   projects a potential cost savings through the implementation of 
 43.7   its project and offers to repay the grant money under the 
 43.8   formula in subdivision 1. 
 43.9      Subd. 3.  [USE OF REPAYMENT REVENUE.] All grant money 
 43.10  repaid to the board under this section is appropriated to the 
 43.11  board for additional grants authorized by sections 465.798, 
 43.12  465.799, and 465.801. 
 43.13     Sec. 30.  Minnesota Statutes 1996, section 473.556, 
 43.14  subdivision 16, is amended to read: 
 43.15     Subd. 16.  [AGREEMENTS WITH AMATEUR SPORTS COMMISSION.] (a) 
 43.16  The commission and the Minnesota amateur sports commission 
 43.17  created pursuant to chapter 240A may enter into long-term 
 43.18  leases, use or other agreements for the conduct of amateur 
 43.19  sports activities at the basketball and hockey arena, and the 
 43.20  net revenues from the activities may be pledged for basketball 
 43.21  and hockey arena debt service.  The commission, with the advice 
 43.22  of the Minnesota amateur sports commission, shall establish 
 43.23  standards to provide reasonable assurances to other public 
 43.24  bodies owning or operating an entertainment or sports complex or 
 43.25  indoor sports arena in the metropolitan area that the agreements 
 43.26  between the commission and the Minnesota amateur sports 
 43.27  commission with respect to the basketball and hockey arena shall 
 43.28  not remove the conduct of amateur sports activities currently 
 43.29  and traditionally held at such facilities.  
 43.30     (b) Any long-term lease, use, or other agreement entered 
 43.31  into by the Minnesota amateur sports commission with the 
 43.32  commission under paragraph (a) must also: 
 43.33     (1) provide for a release of the Minnesota amateur sports 
 43.34  commission from its commitment under the agreement if the 
 43.35  legislature repeals or amends a standing appropriation or 
 43.36  otherwise does not appropriate sufficient money to fund the 
 44.1   lease or agreement to the Minnesota amateur sports commission; 
 44.2   and 
 44.3      (2) provide for a release of the Minnesota amateur sports 
 44.4   commission from its commitment under the agreement and permit it 
 44.5   to agree to a per event use fee when the bonds issued for the 
 44.6   metrodome under section 473.581 have been retired. 
 44.7      (c) No long-term lease, use, or other agreement entered 
 44.8   into by the Minnesota amateur sports commission under paragraph 
 44.9   (a) may commit the amateur sports commission to paying more than 
 44.10  $750,000 per year for the use of the basketball and hockey arena 
 44.11  and all ordinary and necessary event-related expenses.  
 44.12     (d) Any long-term lease, use, or other agreement entered 
 44.13  into under paragraph (a) shall provide that the Minnesota 
 44.14  amateur sports commission shall be entitled to use of the 
 44.15  basketball and hockey arena for 50 event days per year.  In 
 44.16  addition, any long-term lease, use, or other agreement entered 
 44.17  into under paragraph (a) shall permit the Minnesota amateur 
 44.18  sports commission to allow another person or organization to use 
 44.19  one or more of its days.  
 44.20     Sec. 31.  [AGENCY EXAMINATION.] 
 44.21     During the interim between the 1997 and 1998 regular 
 44.22  sessions, the governmental operations budget division of the 
 44.23  senate shall conduct a thorough review of the operation and 
 44.24  financing of the following state agencies:  the departments of 
 44.25  administration, finance, and revenue; the board of the arts; and 
 44.26  the Minnesota amateur sports commission.  The agencies shall 
 44.27  make their books, records, documents, accounting procedures, and 
 44.28  practices available for examination by the division and division 
 44.29  staff.  Agency personnel shall assist the division and division 
 44.30  staff in developing a better understanding of how the agencies 
 44.31  operate. 
 44.32     Sec. 32.  [TARGET CENTER.] 
 44.33     On and after the effective date of sections 22 and 30, no 
 44.34  more money may be paid out pursuant to the annual appropriation 
 44.35  in Minnesota Statutes, section 240A.08, paragraph (a), unless it 
 44.36  is expended consistent with all conditions set forth in 
 45.1   Minnesota Statutes, sections 240A.08 and 473.556, subdivision 
 45.2   16, paragraph (c), as amended by this act.  If the the 
 45.3   metropolitan sports facilities commission does not allocate the 
 45.4   number of event dates described in Minnesota Statutes, section 
 45.5   240A.08, paragraph (a), or terminates or cancels before July 1, 
 45.6   1999, any Minnesota amateur sports commission event that was 
 45.7   scheduled before July 1, 1997, to occur during the biennium 
 45.8   beginning July 1, 1997, no further payments may be made to the 
 45.9   metropolitan sports facilities commission under Minnesota 
 45.10  Statutes, section 240A.08 for the fiscal year in which the 
 45.11  termination or cancellation occurs and the appropriation for the 
 45.12  next succeeding fiscal year is void. 
 45.13     Sec. 33.  [REVISOR OF STATUTES; RULEMAKING DELEGATION 
 45.14  REPORT.] 
 45.15     The revisor of statutes shall compile and submit to the 
 45.16  legislative coordinating commission by December 1, 1997, a list 
 45.17  of all delegations of rulemaking authority in statute.  The 
 45.18  legislative coordinating commission shall review the rulemaking 
 45.19  delegations identified in the revisor's report and report to the 
 45.20  house governmental operations committee and the senate 
 45.21  governmental operations and veterans committee any 
 45.22  recommendations for repeal of obsolete, unnecessary, or 
 45.23  overbroad delegations of rulemaking authority by February 1, 
 45.24  1998. 
 45.25     Sec. 34.  [INSTRUCTION TO REVISOR.] 
 45.26     In the next editions of Minnesota Statutes and Minnesota 
 45.27  Rules, the revisor of statutes shall change the term "ethical 
 45.28  practices board" to "campaign finance and public disclosure 
 45.29  board" wherever it appears. 
 45.30     Sec. 35.  [REPEALER.] 
 45.31     Minnesota Statutes 1996, sections 10A.21; 16B.42; and 
 45.32  16B.58, subdivision 8, are repealed. 
 45.33     Sec. 36.  [EFFECTIVE DATE.] 
 45.34     This article is effective the day following final enactment.
 45.35                             ARTICLE 3
 45.36     Section 1.  [237A.01] [OFFICE OF TECHNOLOGY.] 
 46.1      Subdivision 1.  [PURPOSE.] The Minnesota office of 
 46.2   technology is an agency in the executive branch managed by an 
 46.3   executive director appointed by the governor in accordance with 
 46.4   section 237A.02, subdivision 1.  The office shall provide 
 46.5   leadership and direction for information and communications 
 46.6   technology policy in Minnesota.  The office shall attempt to 
 46.7   establish Minnesota as a national and global leader in 
 46.8   electronic commerce, including trade, distance learning, 
 46.9   telemedicine, and government services, and to ensure that 
 46.10  Minnesota's citizens and businesses receive the benefits of the 
 46.11  emerging competitive market for advanced information and 
 46.12  communications products and services as well as reasonable 
 46.13  consumer protection.  The office shall attempt to coordinate 
 46.14  public and private efforts to advance the development of a 
 46.15  statewide information and communications technology 
 46.16  infrastructure. 
 46.17     Subd. 2.  [DISCRETIONARY POWERS.] The office may: 
 46.18     (1) within its authorized spending authority, enter into 
 46.19  contracts for goods or services with public or private 
 46.20  organizations and charge fees for services it provides; 
 46.21     (2) apply for, receive, and expend money from public 
 46.22  agencies; 
 46.23     (3) apply for, accept, and disburse grants and other aids 
 46.24  from the federal government and other public or private sources; 
 46.25     (4) enter into contracts with agencies of the federal 
 46.26  government, local governmental units, the University of 
 46.27  Minnesota and other educational institutions, and private 
 46.28  persons and other nongovernmental organizations as necessary to 
 46.29  perform its statutory duties; 
 46.30     (5) appoint committees and task forces to assist the office 
 46.31  in carrying out its duties; 
 46.32     (6) sponsor and conduct conferences and studies, collect 
 46.33  and disseminate information, and issue reports relating to 
 46.34  information and communications technology issues; 
 46.35     (7) participate in the activities of standards bodies and 
 46.36  other appropriate conferences related to information and 
 47.1   communications technology issues; 
 47.2      (8) review the technology infrastructure of regions of the 
 47.3   state and cooperate with and make recommendations to the 
 47.4   governor, legislature, state agencies, local governments, local 
 47.5   technology development agencies, the federal government, private 
 47.6   businesses, and individuals for the realization of information 
 47.7   and communications technology infrastructure development 
 47.8   potential; 
 47.9      (9) sponsor, support, and facilitate innovative and 
 47.10  collaborative economic and community development and government 
 47.11  services projects, including technology initiatives related to 
 47.12  culture and the arts, with public and private organizations; and 
 47.13     (10) review and recommend alternative sourcing strategies 
 47.14  for state information and communication systems. 
 47.15     Subd. 3.  [DUTIES.] The office shall: 
 47.16     (1) coordinate the efficient and effective use of available 
 47.17  federal, state, local, and private resources to develop 
 47.18  statewide information and communications technology and its 
 47.19  infrastructure; 
 47.20     (2) review state agency and intergovernmental information 
 47.21  and communications systems development efforts involving state 
 47.22  or intergovernmental funding, provide information to the 
 47.23  legislature in accordance with section 16A.11 regarding projects 
 47.24  reviewed, and recommend projects for inclusion in the 
 47.25  information technology budget under section 16A.11; 
 47.26     (3) encourage cooperation and collaboration among state and 
 47.27  local governments in developing intergovernmental communication 
 47.28  and information systems, and define the structure and 
 47.29  responsibilities of the information policy council; 
 47.30     (4) continue the development of North Star, the state's 
 47.31  official comprehensive on-line service and information 
 47.32  initiative; 
 47.33     (5) promote and collaborate with the state's agencies in 
 47.34  the state's transition to an effectively competitive 
 47.35  telecommunications market; 
 47.36     (6) promote and coordinate education and lifelong learning 
 48.1   initiatives to assist Minnesotans to develop technical literacy 
 48.2   and obtain access to ongoing learning resources; 
 48.3      (7) promote and coordinate public information access and 
 48.4   network initiatives, consistent with chapter 13, to connect 
 48.5   Minnesota's citizens and communities to each other, to their 
 48.6   governments, and to the world; 
 48.7      (8) promote and coordinate electronic commerce initiatives 
 48.8   to ensure that Minnesota businesses and citizens can 
 48.9   successfully compete in the global economy; 
 48.10     (9) promote and coordinate the regular and periodic 
 48.11  reinvestment in the core information and communications 
 48.12  technology infrastructure so state and local government agencies 
 48.13  can effectively and efficiently serve their customers; 
 48.14     (10) work with others, including the department of 
 48.15  administration, to facilitate the cooperative development of 
 48.16  standards for information systems, electronic data practices and 
 48.17  privacy, and electronic commerce among international, national, 
 48.18  state, and local public and private organizations; and 
 48.19     (11) work with others to avoid unnecessary duplication of 
 48.20  existing services or activities provided by other public and 
 48.21  private organizations while building on the existing 
 48.22  governmental, educational, business, health care, and economic 
 48.23  development infrastructures. 
 48.24     Sec. 2.  [237A.02] [OFFICE OF TECHNOLOGY STRUCTURE AND 
 48.25  PERSONNEL.] 
 48.26     Subdivision 1.  [OFFICE MANAGEMENT AND STRUCTURE.] The 
 48.27  executive director of the office of technology shall serve as 
 48.28  the chief information officer and technology advisor to the 
 48.29  governor.  The salary of the executive director may not exceed 
 48.30  85 percent of the governor's salary.  The executive director may 
 48.31  employ a deputy director, assistant directors, and other 
 48.32  employees the executive director may consider necessary.  The 
 48.33  staff of the office must include individuals knowledgeable in 
 48.34  information and communications technology.  The executive 
 48.35  director may define the duties and designate the titles of the 
 48.36  employees in accordance with chapter 43A. 
 49.1      Subd. 2.  [INTERGOVERNMENTAL PARTICIPATION.] The executive 
 49.2   director or the director's designee shall serve as a member of 
 49.3   the Minnesota education telecommunications council, the 
 49.4   geographic information systems council, the library planning 
 49.5   task force, and their respective successor organizations, and as 
 49.6   a member of Minnesota Technology, Inc., the Minnesota health 
 49.7   data institute, and the Minnesota world trade center corporation.
 49.8      Sec. 3.  [237A.03] [NORTH STAR INFORMATION ACCESS ACCOUNT.] 
 49.9      The North Star information access account is in the special 
 49.10  revenue fund.  Money in the account is appropriated to the 
 49.11  office to be used to continue the development of the North Star 
 49.12  project as provided in this chapter.  The account consists of: 
 49.13     (1) grants received from nonstate entities; 
 49.14     (2) fees and charges collected by the office of technology; 
 49.15     (3) gifts, donations, and bequests made to the office; and 
 49.16     (4) other funds credited to the account by law. 
 49.17     Sec. 4.  [237A.04] [ADMINISTRATION OF STATE INFORMATION AND 
 49.18  COMMUNICATIONS SYSTEMS.] 
 49.19     Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
 49.20  237A.04 to 237A.06 the following terms have the meanings given 
 49.21  them. 
 49.22     (a) "Information and communications technology activity" 
 49.23  means the development or acquisition of information and 
 49.24  communications technology devices and systems. 
 49.25     (b) "Data processing device or system" means equipment or 
 49.26  computer programs, including computer hardware, firmware, 
 49.27  software, and communication protocol, used in connection with 
 49.28  the processing of information through electronic data processing 
 49.29  means, and includes data communication devices used in 
 49.30  connection with computer facilities for the transmission of data.
 49.31     (c) "State agency" includes state colleges and universities 
 49.32  and the Minnesota higher education services office. 
 49.33     Subd. 2.  [EXECUTIVE DIRECTOR'S RESPONSIBILITY.] The 
 49.34  executive director of the office of technology shall coordinate 
 49.35  the state's information and communications technology systems to 
 49.36  serve the needs of the state government.  The executive director 
 50.1   shall: 
 50.2      (1) coordinate the design of a master plan for information 
 50.3   and communications technology systems in the state and its 
 50.4   political subdivisions and shall report on the plan to the 
 50.5   governor and legislature at the beginning of each regular 
 50.6   session; 
 50.7      (2) coordinate all information and communications 
 50.8   technology plans and contracts and oversee the state's 
 50.9   information and communications systems; 
 50.10     (3) establish standards for information and communications 
 50.11  systems that encourage competition and support open systems 
 50.12  environments and that are compatible with national and 
 50.13  international standards; and 
 50.14     (4) maintain a library of systems and programs developed by 
 50.15  the state and its political subdivisions for use by agencies of 
 50.16  government. 
 50.17     Subd. 3.  [EVALUATION PROCEDURE.] The executive director 
 50.18  shall establish and, as necessary, update and modify procedures 
 50.19  to evaluate information and communications activities proposed 
 50.20  by state agencies.  The evaluation procedure must assess the 
 50.21  necessity, design, and plan for development; ability to meet 
 50.22  user requirements; feasibility; and flexibility of the proposed 
 50.23  data processing device or system, its relationship to other 
 50.24  state data processing devices or systems, and its costs and 
 50.25  benefits when considered by itself and when compared with other 
 50.26  options. 
 50.27     Subd. 4.  [REPORT TO LEGISLATURE.] The executive director 
 50.28  shall submit to the legislature, in the annual information 
 50.29  technology budget required by section 16A.11, a concise 
 50.30  narrative explanation of the activity and a request for any 
 50.31  additional appropriation necessary to complete the activity. 
 50.32     Subd. 5.  [SYSTEM DEVELOPMENT METHODOLOGY.] The executive 
 50.33  director shall establish and, as necessary, update and modify 
 50.34  methodologies for the development of information and 
 50.35  communications systems appropriate to the specific needs of 
 50.36  individual state agencies.  The development methodology shall be 
 51.1   used to define the design, programming, and implementation of 
 51.2   systems.  The development methodologies must also enable and 
 51.3   require a data processing system to be defined in terms of its 
 51.4   computer programs, input requirements, output formats, 
 51.5   administrative procedures, and processing frequencies. 
 51.6      Subd. 6.  [DATA SECURITY SYSTEMS.] In consultation with the 
 51.7   attorney general and appropriate agency heads, the executive 
 51.8   director shall develop data security policies, guidelines, and 
 51.9   standards, and the commissioner of administration shall install 
 51.10  and administer state data security systems on the state's 
 51.11  centralized computer facility consistent with these policies, 
 51.12  guidelines, standards, and state law to ensure the integrity of 
 51.13  computer-based and other data and to ensure confidentiality of 
 51.14  the data, consistent with the public's right to know as defined 
 51.15  in chapter 13.  Each department or agency head is responsible 
 51.16  for the security of the department's or agency's data. 
 51.17     Subd. 7.  [JOINT ACTIONS.] The executive director may join 
 51.18  with the federal government, other states, local governments, 
 51.19  and organizations representing those groups either jointly or 
 51.20  severally in the development and implementation of systems 
 51.21  analysis, information services, and computerization projects. 
 51.22     Subd. 8.  [ELECTRONIC PERMITTING AND LICENSING.] The 
 51.23  executive director, in consultation with affected parties, shall 
 51.24  coordinate the development of a system through which state 
 51.25  permits or licenses normally issued immediately upon payment of 
 51.26  a fee may be issued through electronic access to the appropriate 
 51.27  state agencies. 
 51.28     Sec. 5.  [237A.05] [INFORMATION AND COMMUNICATIONS 
 51.29  TECHNOLOGY POLICY.] 
 51.30     Subdivision 1.  [DEVELOPMENT.] The office of technology 
 51.31  shall coordinate with state agencies in the development and 
 51.32  establishment of policies and standards for state agencies to 
 51.33  follow in developing and purchasing information and 
 51.34  communications systems and training appropriate persons in their 
 51.35  use.  The office shall develop, promote, and coordinate state 
 51.36  technology, architecture, standards and guidelines, information 
 52.1   needs analysis techniques, contracts for the purchase of 
 52.2   equipment and services, and training of state agency personnel 
 52.3   on these issues. 
 52.4      Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
 52.5   activities prescribed by law, the office shall carry out the 
 52.6   duties set out in this subdivision. 
 52.7      (b) The office must develop and establish a state 
 52.8   information architecture to ensure that further state agency 
 52.9   development and purchase of information and communications 
 52.10  systems, equipment, and services is designed to ensure that 
 52.11  individual agency information systems complement and do not 
 52.12  needlessly duplicate or conflict with the systems of other 
 52.13  agencies.  The development of this information architecture must 
 52.14  include the establishment of standards and guidelines to be 
 52.15  followed by state agencies. 
 52.16     (c) The office shall assist state agencies in the planning 
 52.17  and management of information systems so that an individual 
 52.18  information system reflects and supports the state agency's 
 52.19  mission and the state's requirements and functions. 
 52.20     (d) The office must review agency requests for legislative 
 52.21  appropriations for the development or purchase of information 
 52.22  systems equipment or software. 
 52.23     (e) The office shall review major purchases of information 
 52.24  systems equipment to: 
 52.25     (1) ensure that the equipment follows the standards and 
 52.26  guidelines of the state information architecture; 
 52.27     (2) ensure that the equipment is consistent with the 
 52.28  information management principles adopted by the information 
 52.29  policy council; 
 52.30     (3) evaluate whether the agency's proposed purchase 
 52.31  reflects a cost-effective policy regarding volume purchasing; 
 52.32  and 
 52.33     (4) ensure that the equipment is consistent with other 
 52.34  systems in other state agencies so that data can be shared among 
 52.35  agencies, unless the office determines that the agency 
 52.36  purchasing the equipment has special needs justifying the 
 53.1   inconsistency. 
 53.2      (f) The office shall review the operation of information 
 53.3   systems by state agencies and provide advice and assistance to 
 53.4   ensure that these systems are operated efficiently and 
 53.5   continually meet the standards and guidelines established by the 
 53.6   office.  The standards and guidelines must emphasize uniformity 
 53.7   that encourages information interchange, open systems 
 53.8   environments, and portability of information whenever 
 53.9   practicable and consistent with an agency's authority and 
 53.10  chapter 13.  The office, in consultation with the 
 53.11  intergovernmental information systems advisory council and the 
 53.12  legislative reference library, shall recommend specific 
 53.13  standards and guidelines for each state agency within a time 
 53.14  period fixed by the office in regard to the establishment of: 
 53.15     (1) methodologies and systems directed at reducing and 
 53.16  ultimately eliminating redundant storage of data; and 
 53.17     (2) information sales systems that utilize licensing and 
 53.18  royalty agreements to the greatest extent possible, together 
 53.19  with procedures for agency denial of requests for licenses or 
 53.20  royalty agreements by commercial users or resellers of the 
 53.21  information.  Section 3.751 does not apply to those licensing 
 53.22  and royalty agreements, and the agreements must include 
 53.23  provisions that section 3.751 does not apply and that the state 
 53.24  is immune from liability under the agreement. 
 53.25     (g) The office shall conduct a comprehensive review at 
 53.26  least every three years of the information systems investments 
 53.27  that have been made by state agencies and higher education 
 53.28  institutions.  The review must include recommendations on any 
 53.29  information systems applications that could be provided in a 
 53.30  more cost-beneficial manner by an outside source.  The office 
 53.31  must report the results of its review to the legislature and the 
 53.32  governor. 
 53.33     (h) The office shall report to the legislature by January 
 53.34  15 of each year on progress in implementing paragraph (f), 
 53.35  clauses (1) and (2). 
 53.36     Sec. 6.  [237A.06] [GOVERNMENT INFORMATION ACCESS.] 
 54.1      Subdivision 1.  [DUTIES.] The office of technology, in 
 54.2   consultation with interested persons, shall: 
 54.3      (1) coordinate statewide efforts by units of state and 
 54.4   local government to plan for and develop a system for providing 
 54.5   access to government services; 
 54.6      (2) make recommendations to facilitate coordination and 
 54.7   assistance of demonstration projects; 
 54.8      (3) explore ways and means to improve citizen and business 
 54.9   access to public services, including implementation of 
 54.10  technological improvements. 
 54.11     Subd. 2.  [APPROVAL OF STATE AGENCY INITIATIVES.] A state 
 54.12  agency shall coordinate with the office when implementing a new 
 54.13  initiative for providing electronic access to state government 
 54.14  information. 
 54.15     Subd. 3.  [CAPITAL INVESTMENT.] No state agency may propose 
 54.16  or implement a capital investment plan for a state office 
 54.17  building unless: 
 54.18     (1) the agency has developed a plan for increasing 
 54.19  telecommuting by employees who would normally work in the 
 54.20  building, or the agency has prepared a statement describing why 
 54.21  such a plan is not practicable; and 
 54.22     (2) the plan or statement has been reviewed by the office. 
 54.23     Sec. 7.  [237A.07] [DATA.] 
 54.24     The following data submitted to the office of technology by 
 54.25  businesses are private data on individuals or nonpublic data: 
 54.26  financial statements, business plans, income and expense 
 54.27  projections, customer lists, and market and feasibility studies 
 54.28  not paid for with public funds. 
 54.29     Sec. 8.  [237A.08] [TRADE POINT.] 
 54.30     The office of technology shall cooperate with the United 
 54.31  Nations, the Minnesota world trade center corporation, the 
 54.32  commissioner of trade and economic development, the University 
 54.33  of Minnesota, and private businesses to expand international 
 54.34  trading opportunities for small and medium sized businesses 
 54.35  through the use of electronic commerce technologies and 
 54.36  participation in the global trade point network.  The office 
 55.1   shall support research and development of secured trading 
 55.2   technologies by the commissioner of trade and economic 
 55.3   development, the University of Minnesota, and others.  The 
 55.4   office, in cooperation with the commissioner of trade and 
 55.5   economic development, shall coordinate expansion of membership 
 55.6   in a trade point association.  The office shall provide training 
 55.7   and outreach and support training and outreach provided by the 
 55.8   commissioner of trade and economic development and the 
 55.9   University of Minnesota.  These agencies shall cooperate in the 
 55.10  identification and development of electronic trading centers in 
 55.11  multiple regions of this state. 
 55.12     Sec. 9.  [237A.09] [UNIFORM BUSINESS IDENTIFIER.] 
 55.13     The office shall coordinate the design and implementation 
 55.14  of a uniform business identifier system to provide a business 
 55.15  with a single account number for its dealings with all state 
 55.16  agencies.  The system must be designed and maintained to 
 55.17  facilitate the electronic retrieval of business information 
 55.18  under section 237A.10 and the electronic filing of permit and 
 55.19  license applications under section 237A.11. 
 55.20     Sec. 10.  [237A.10] [BUSINESS LICENSE INFORMATION.] 
 55.21     The office shall coordinate the design, establishment, 
 55.22  implementation, and maintenance of an electronic system to allow 
 55.23  the public to retrieve by computer information prepared by the 
 55.24  department of trade and economic development bureau of business 
 55.25  licenses on licenses and their requirements.  The office shall 
 55.26  establish the format and standards for retrieval consistent with 
 55.27  state information and data interchange policies.  The office 
 55.28  shall integrate the system with the North Star on-line 
 55.29  information system.  The office shall work in collaboration with 
 55.30  the department of trade and economic development bureau of 
 55.31  business licenses.  The bureau is responsible for creating and 
 55.32  operating the system.  
 55.33     Sec. 11. [237A.11] [ELECTRONIC BUSINESS LICENSING.] 
 55.34     The office, in consultation with affected parties, shall 
 55.35  coordinate the development of a system through which people 
 55.36  seeking state permits or licenses normally issued immediately 
 56.1   upon payment of a fee may be issued through electronic access to 
 56.2   the appropriate state agencies.  The system must be designed to 
 56.3   allow the public to file electronic applications for business 
 56.4   licenses and permits as defined in sections 116C.24, subdivision 
 56.5   5, and 116J.70, subdivision 2, and for the occupational and 
 56.6   other licenses, registrations, certifications, and permits 
 56.7   described in section 116J.70, subdivision 2a, clauses (1) and 
 56.8   (3).  The office shall, consistent with section 116J.83 and in 
 56.9   consultation with each agency having jurisdiction to approve or 
 56.10  deny a license, identify the licenses that can be electronically 
 56.11  applied for and shall establish the standards and formats for 
 56.12  the applications consistent with state information and data 
 56.13  interchange policies.  The office shall integrate the system 
 56.14  with the North Star on-line information system. 
 56.15     Sec. 12.  [EFFECTIVE DATE.] 
 56.16     This article is effective July 1, 1997. 
 56.17                             ARTICLE 4
 56.18     Section 1.  Minnesota Statutes 1996, section 16B.465, 
 56.19  subdivision 3, is amended to read: 
 56.20     Subd. 3.  [DUTIES.] The commissioner, after consultation 
 56.21  with the council Minnesota office of technology, shall: 
 56.22     (1) provide voice, data, video, and other 
 56.23  telecommunications transmission services to the state and to 
 56.24  political subdivisions through an account in the 
 56.25  intertechnologies revolving fund; 
 56.26     (2) manage vendor relationships, network function, and 
 56.27  capacity planning in order to be responsive to the needs of the 
 56.28  system users; 
 56.29     (3) set rates and fees for services; 
 56.30     (4) approve contracts relating to the system; 
 56.31     (5) in consultation with the Minnesota office of 
 56.32  technology, develop the system plan, including plans for the 
 56.33  phasing of its implementation and maintenance of the initial 
 56.34  system, and the annual program and fiscal plans for the system; 
 56.35  and 
 56.36     (6) in consultation with the Minnesota office of 
 57.1   technology, develop a plan for interconnection of the network 
 57.2   with private colleges and public and private schools in the 
 57.3   state. 
 57.4      Sec. 2.  [16B.466] [ADMINISTRATION OF STATE COMPUTER 
 57.5   FACILITIES.] 
 57.6      Subdivision 1.  [COMMISSIONER'S RESPONSIBILITY.] The 
 57.7   commissioner of administration shall integrate and operate the 
 57.8   state's centralized computer facilities to serve the needs of 
 57.9   state government.  The commissioner shall provide technical 
 57.10  assistance to state agencies in the design, development, and 
 57.11  operation of their computer systems. 
 57.12     Subd. 2.  [DATA SECURITY SYSTEMS.] In consultation with the 
 57.13  attorney general and appropriate agency heads, the commissioner 
 57.14  shall install and administer state data security systems on the 
 57.15  state's centralized computer facility consistent with state law 
 57.16  to ensure the integrity of computer-based and other data and to 
 57.17  ensure applicable limitations on access to data, consistent with 
 57.18  the public's right to know.  Each department or agency head is 
 57.19  responsible for the security of the department's or agency's 
 57.20  data. 
 57.21     Subd. 3.  [JOINT ACTIONS.] The commissioner may, within 
 57.22  available funding, join with the federal government, other 
 57.23  states, local governments, and organizations representing those 
 57.24  groups either jointly or severally in the development and 
 57.25  implementation of systems analysis, information services, and 
 57.26  computerization projects. 
 57.27     Sec. 3.  [REPEALER.] 
 57.28     Minnesota Statutes 1996, sections 15.95; 15.96; 16B.40; 
 57.29  16B.41; and 16B.43, are repealed. 
 57.30     Sec. 4.  [TRANSFERS.] 
 57.31     In accordance with Minnesota Statutes 1996, sections 15.039 
 57.32  and 43A.045, the budget and positions of the information policy 
 57.33  office, with incumbents, excluding the public information policy 
 57.34  analysis division, are transferred to the Minnesota office of 
 57.35  technology, effective July 1, 1997. 
 57.36     Sec. 5.  [INSTRUCTION TO REVISOR.] 
 58.1      The revisor is instructed to change all statutory 
 58.2   references to the information policy office and the government 
 58.3   information access council to the office of technology. 
 58.4      Sec. 6.  [EFFECTIVE DATE.] 
 58.5      This article is effective July 1, 1997.