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; modifying provisions relating to state 
  1.6             government operations; providing for community-based 
  1.7             planning; providing for planning pilot projects; 
  1.8             modifying provisions relating to the municipal board; 
  1.9             establishing dispute resolution procedures; modifying 
  1.10            provisions relating to prescription drugs; 
  1.11            establishing the Minnesota office of technology; 
  1.12            providing for the North Star on-line service; 
  1.13            modifying public employee and official compensation 
  1.14            provisions; providing criminal penalties; 
  1.15            appropriating money; amending Minnesota Statutes 1996, 
  1.16            sections 3.056; 3.225, subdivision 1; 3.85, 
  1.17            subdivision 3; 3.855, subdivision 3; 8.31, subdivision 
  1.18            1; 10A.071, subdivision 3; 10A.09, subdivision 6; 
  1.19            10A.20, subdivision 2; 15.0597, subdivisions 5 and 7; 
  1.20            15.0599, subdivision 4; 15.50, by adding subdivisions; 
  1.21            15.91, subdivision 2; 15A.081, subdivisions 7b, 8, and 
  1.22            9; 15A.083, subdivisions 5, 6a, and 7; 16A.10, 
  1.23            subdivision 2; 16A.11, subdivisions 1 and 3c; 
  1.24            16A.1285, subdivision 3; 16A.129, subdivision 3; 
  1.25            16A.15, subdivision 3; 16A.642, subdivision 1; 16B.05, 
  1.26            subdivision 2; 16B.167; 16B.24, subdivision 5; 16B.35, 
  1.27            by adding a subdivision; 16B.42, subdivision 1; 
  1.28            16B.46; 16B.465, subdivisions 1, 3, 4, and 6; 16B.467; 
  1.29            16B.70, subdivision 2; 43A.17, subdivisions 1, 3, and 
  1.30            4; 43A.18, subdivisions 4 and 5; 43A.38, subdivision 
  1.31            4; 85A.02, subdivision 5a; 115.49, by adding a 
  1.32            subdivision; 116P.05, subdivision 1; 138.31, by adding 
  1.33            a subdivision; 138.35; 151.21, subdivisions 2, 3, and 
  1.34            by adding a subdivision; 176.611, by adding a 
  1.35            subdivision; 177.24, subdivision 1; 179A.03, 
  1.36            subdivision 15; 179A.10, subdivision 1; 298.22, 
  1.37            subdivision 1; 327.33, subdivision 2; 327B.04, 
  1.38            subdivision 7; 349.163, subdivision 4; 349A.02, 
  1.39            subdivision 1; 394.24, subdivision 1; 403.08, by 
  1.40            adding a subdivision; 403.11, subdivision 2; 403.113, 
  1.41            subdivisions 1, 2, 3, and 4; 403.13; 414.0325, 
  1.42            subdivision 1; 414.033, subdivisions 2b, 11, and 12; 
  1.43            422A.101, subdivision 3; 462.357, subdivision 2; 
  1.44            465.87, by adding a subdivision; and 473.894, 
  1.45            subdivision 3; Laws 1994 chapter 643, section 3, 
  1.46            subdivision 2; and Laws 1996, chapter 463, section 13, 
  2.1             subdivision 2; proposing coding for new law in 
  2.2             Minnesota Statutes, chapters 4A; 10A; 11A; 15A; 16A; 
  2.3             16B; 43A; 62J; 197; 240A; 394; 403; 414; 462; and 473; 
  2.4             proposing coding for new law as Minnesota Statutes, 
  2.5             chapters 237A; 237B; and 572A; repealing Minnesota 
  2.6             Statutes 1996, sections 15.95; 15.96; 15A.081, 
  2.7             subdivisions 1 and 7; 16A.102; 16B.40; 16B.41; 16B.43; 
  2.8             16B.58, subdivision 8; 116C.80; 138.35, subdivision 3; 
  2.9             and 414.033, subdivision 2a. 
  2.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.11                             ARTICLE 1
  2.12                    STATE GOVERNMENT OPERATIONS
  2.13  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.14     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.15  appropriated from the general fund, or another fund named, to 
  2.16  the agencies and for the purposes specified in this act, to be 
  2.17  available for the fiscal years indicated for each purpose.  The 
  2.18  figures "1998" and "1999," where used in this act, mean that the 
  2.19  appropriation or appropriations listed under them are available 
  2.20  for the year ending June 30, 1998, or June 30, 1999, 
  2.21  respectively.  
  2.22                          SUMMARY BY FUND 
  2.23                                                       BIENNIAL
  2.24                            1998          1999           TOTAL
  2.25  General              $407,529,000   $296,519,000   $704,048,000
  2.26  State 
  2.27  Government 
  2.28  Special Revenue        11,160,000     12,180,000     23,340,000 
  2.29  Environmental             224,000        229,000        453,000
  2.30  Solid Waste Fund          445,000        450,000        895,000
  2.31  Highway User
  2.32  Tax Distribution        2,044,000      2,091,000      4,135,000
  2.33  Trunk Highway              37,000         37,000         74,000 
  2.34  Workers'
  2.35  Compensation            4,207,000      4,295,000      8,502,000 
  2.36  TOTAL                $425,646,000   $315,801,000   $741,447,000
  2.37                                             APPROPRIATIONS 
  2.38                                         Available for the Year 
  2.39                                             Ending June 30 
  2.40                                            1998         1999 
  2.41  Sec. 2.  LEGISLATURE 
  2.42  Subdivision 1.  Total  
  2.43  Appropriation                         53,078,000     55,914,000
  2.44                Summary by Fund
  3.1   General              53,041,000    55,877,000
  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                      17,407,000     17,407,000
  3.7   Subd. 3.  House of Representatives    23,616,000     25,801,000
  3.8   Subd. 4.  Legislative 
  3.9   Coordinating Commission               12,055,000     12,706,000
  3.10                Summary by Fund
  3.11  General              12,018,000    12,669,000
  3.12  Trunk Highway            37,000        37,000
  3.13  $4,754,000 the first year and 
  3.14  $5,362,000 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  $10,000 is for the "We the 
  3.23  People...Project Citizen Program."  The 
  3.24  appropriation is available until June 
  3.25  30, 1999. 
  3.26  $16,000 for the biennium is added to 
  3.27  the base to provide additional funding 
  3.28  for the legislative coordinating 
  3.29  commission to contract for sign 
  3.30  language interpreter services for 
  3.31  meetings in Minnesota with legislators. 
  3.32  As of July 1, 1998, the house and 
  3.33  senate public information offices must 
  3.34  be combined into one office under the 
  3.35  jurisdiction of the legislative 
  3.36  coordinating commission.  The 
  3.37  appropriations to the house and senate 
  3.38  are reduced by the amounts attributable 
  3.39  to these offices in the second year, 
  3.40  and 75 percent of the amount of these 
  3.41  reductions in house and senate 
  3.42  appropriations is appropriated to the 
  3.43  legislative coordinating commission. 
  3.44  During the biennium ending June 30, 
  3.45  1999, no more than eight full-time 
  3.46  legislative staff positions may be used 
  3.47  in connection with production and 
  3.48  distribution of televised coverage of 
  3.49  legislative proceedings. 
  3.50  At least five percent of the funds 
  3.51  allocated for legislative television 
  3.52  must be used to provide videotapes of 
  3.53  legislative floor sessions and 
  3.54  committee hearings for distribution as 
  3.55  educational materials. 
  4.1   Staff responsible for legislative 
  4.2   television shall consider regularly 
  4.3   scheduled late night rebroadcasts of 
  4.4   floor sessions and committee hearings. 
  4.5   Sec. 3.  GOVERNOR AND 
  4.6   LIEUTENANT GOVERNOR                    3,821,000      3,874,000
  4.7   This appropriation is to fund the 
  4.8   offices of the governor and lieutenant 
  4.9   governor.  
  4.10  Sec. 4.  STATE AUDITOR                 7,737,000      7,953,000
  4.11  Sec. 5.  STATE TREASURER               2,070,000      2,134,000
  4.12  Sec. 6.  ATTORNEY GENERAL             27,233,000     27,896,000
  4.13                Summary by Fund
  4.14  General              24,811,000    25,391,000
  4.15  State Government
  4.16  Special Revenue       1,849,000     1,924,000
  4.17  Environmental           128,000       131,000 
  4.18  Solid Waste Fund        445,000       450,000 
  4.19  $25,000 is for the attorney general to 
  4.20  continue a study of gender equity in 
  4.21  athletics. 
  4.22  Agencies receiving legal services under 
  4.23  Minnesota Statutes, section 8.15, are 
  4.24  required to pay the full hourly rate 
  4.25  established under Minnesota Statutes, 
  4.26  section 8.15, subdivision 1. 
  4.27  Sec. 7.  SECRETARY OF STATE            6,103,000      5,888,000
  4.28  Sec. 8.  BOARD OF PUBLIC DISCLOSURE      593,000        483,000
  4.29  The board shall not adopt any new 
  4.30  administrative rules governing the 
  4.31  provisions outlined in Minnesota Rules, 
  4.32  chapter 4500 until after February 1, 
  4.33  1999. 
  4.34  Sec. 9.  INVESTMENT BOARD              2,163,000      2,247,000
  4.35  Sec. 10.  ADMINISTRATIVE HEARINGS      4,107,000      4,195,000
  4.36  This appropriation is from the workers' 
  4.37  compensation special compensation fund 
  4.38  for considering workers' compensation 
  4.39  claims. 
  4.40  Sec. 11.  OFFICE OF STRATEGIC 
  4.41  AND LONG-RANGE PLANNING                   4,723,000  4,727,000
  4.42  $75,000 the first year is to develop 
  4.43  the strategic plan for economic policy. 
  4.44  $250,000 each year is for planning and 
  4.45  technology grants to counties and 
  4.46  municipalities that elect to prepare 
  4.47  community-based plans.  The 
  4.48  appropriation is available until 
  4.49  expended. 
  5.1   $250,000 each year is for statewide 
  5.2   grants to implement teen courts. 
  5.3   $15,000 in the first year is to develop 
  5.4   a plan for the construction of a steam 
  5.5   service network connecting and 
  5.6   providing steam service to entities in 
  5.7   the cities of Minneapolis and St. 
  5.8   Paul.  The office shall conduct an 
  5.9   analysis of the economic and 
  5.10  environmental benefits and costs of 
  5.11  this network, and report its findings 
  5.12  to the legislature by February 15, 
  5.13  1998.  No steam service facility of a 
  5.14  baseload capacity of over 100,000 
  5.15  pounds of steam per hour may be 
  5.16  constructed, reconstructed, enhanced, 
  5.17  or expanded by a public authority 
  5.18  within those cities between the Lowry 
  5.19  Avenue N.E. bridge crossing the 
  5.20  Mississippi River in Minneapolis and 
  5.21  the I-35E bridge crossing the 
  5.22  Mississippi River between St. Paul and 
  5.23  Lilydale until the end of the 1998 
  5.24  legislative session. 
  5.25  Sec. 12.  ADMINISTRATION 
  5.26  Subdivision 1.  Total 
  5.27  Appropriation                         47,803,000     42,742,000
  5.28                Summary by Fund
  5.29  General              38,892,000    32,886,000
  5.30  State Government 
  5.31  Special Revenue       8,911,000     9,856,000
  5.32  The amounts that may be spent from this 
  5.33  appropriation for each program are 
  5.34  specified in the following subdivisions.
  5.35  Subd. 2.  Operations Management 
  5.36       3,607,000      3,402,000
  5.37  $250,000 is for prescription drug 
  5.38  contracting activities. 
  5.39  During the biennium ending June 30, 
  5.40  1999, for any executive agency contract 
  5.41  that is subject to Minnesota Statutes, 
  5.42  section 363.073, the commissioner shall 
  5.43  ensure, before the agency enters into 
  5.44  the contract, that the company to 
  5.45  receive the contract has a written plan 
  5.46  to recruit Minnesota welfare recipients 
  5.47  to fill vacancies in entry level 
  5.48  positions, if the company has entry 
  5.49  level employees in Minnesota. 
  5.50  Subd. 3.  Intertechnologies Group
  5.51      10,422,000     11,615,000
  5.52                Summary by Fund
  5.53  General               1,511,000     1,759,000
  5.54  State Government 
  5.55  Special Revenue       8,911,000     9,856,000
  6.1   The appropriation from the special 
  6.2   revenue fund is for recurring costs of 
  6.3   911 emergency telephone service.  
  6.4   Subd. 4.  Facilities Management 
  6.5        10,606,000     9,019,000
  6.6   $67,000 each year is to offset foregone 
  6.7   profits that the commissioner would 
  6.8   realize from vending machine operations 
  6.9   in the capitol complex if the 
  6.10  department operated these machines.  
  6.11  The commissioner of administration 
  6.12  shall report to the legislature by 
  6.13  January 15, 1998, on the desirability 
  6.14  of funding state agency rent costs by 
  6.15  making one direct appropriation to the 
  6.16  commissioner of administration rather 
  6.17  than by having each state agency pay 
  6.18  rent. 
  6.19  The commissioner of administration 
  6.20  shall replace the portrait of Governor 
  6.21  Rudy Perpich that currently is 
  6.22  displayed on the ground floor of the 
  6.23  State Capitol with the portrait of Rudy 
  6.24  and Lola Perpich that currently is 
  6.25  displayed at the Minnesota Historical 
  6.26  Society. 
  6.27  The commissioner shall buy the building 
  6.28  in Ely currently used by the department 
  6.29  of revenue.  $650,000 is appropriated 
  6.30  for the purchase. 
  6.31  $1,035,000 in fiscal year 1998 is to 
  6.32  predesign, design, construct, furnish, 
  6.33  and equip the renovation of the capitol 
  6.34  cafeteria and related spaces.  The 
  6.35  appropriation is available until June 
  6.36  30, 1999, and is contingent upon 
  6.37  approval of the council on disability. 
  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  $20,000 is to place a bust of Nellie 
  6.45  Stone Johnson in the State Capitol 
  6.46  Building. 
  6.47  Subd. 5.  Administrative Management 
  6.48       2,407,000     2,462,000
  6.49  Subd. 6.  Technology Management 
  6.50      12,993,000     11,001,000
  6.51  $23,000,000 for the biennium is for 
  6.52  modification of state business systems 
  6.53  to address year 2000 changes.  
  6.54  $8,000,000 is placed in a contingent 
  6.55  account and is available only upon 
  6.56  approval of the governor, after 
  7.1   consultation with the legislative 
  7.2   advisory commission.  The commissioner 
  7.3   shall report to the legislature by 
  7.4   December 15, 1997, on progress of the 
  7.5   project. 
  7.6   This appropriation is not available 
  7.7   until the commissioner has determined 
  7.8   that all current money allocated for 
  7.9   replacement or enhancement of existing 
  7.10  technology for year 2000 compliance 
  7.11  have been expended.  Each request for 
  7.12  additional funding must include the 
  7.13  following information:  (1) a complete 
  7.14  description of the impact if the 
  7.15  information system is not upgraded for 
  7.16  year 2000 compliance; (2) a description 
  7.17  of other means of addressing the 
  7.18  problem if additional funding is not 
  7.19  provided; and (3) a description of 
  7.20  problems that may impact other systems 
  7.21  if the funding is not provided. 
  7.22  Subd. 7.  Management Analysis 
  7.23         584,000        658,000
  7.24  Subd. 8.  Public Broadcasting 
  7.25       4,314,000      3,964,000
  7.26  $1,450,000 the first year and 
  7.27  $1,450,000 the second year are for 
  7.28  matching grants for public television.  
  7.29  Public television grant recipients 
  7.30  shall give special emphasis to 
  7.31  children's programming.  In addition, 
  7.32  public television grant recipients 
  7.33  shall promote program and outreach 
  7.34  initiatives that attempt to reduce 
  7.35  youth violence in our communities.  
  7.36  $300,000 the first year and $300,000 
  7.37  the second year is added to the public 
  7.38  television matching grants category in 
  7.39  order to assist public television grant 
  7.40  recipients in their efforts to expand 
  7.41  locally originated programming.  These 
  7.42  funds shall be used to help public 
  7.43  television grant recipients develop and 
  7.44  promote new programs that will increase 
  7.45  literacy, reduce youth violence, and 
  7.46  promote public affairs and other 
  7.47  educational program initiatives. 
  7.48  $600,000 the first year and $600,000 
  7.49  the second year are for public 
  7.50  television equipment needs.  Equipment 
  7.51  grant allocations shall be made after 
  7.52  considering the recommendations of the 
  7.53  Minnesota public television association.
  7.54  $320,000 the first year and $320,000 
  7.55  the second year are for community 
  7.56  service grants to public educational 
  7.57  radio stations, which must be allocated 
  7.58  after considering the recommendations 
  7.59  of the Association of Minnesota Public 
  7.60  Educational Radio Stations under 
  7.61  Minnesota Statutes, section 129D.14. 
  8.1   $494,000 the first year and $494,000 
  8.2   the second year are for equipment 
  8.3   grants to public radio stations.  These 
  8.4   grants must be allocated after 
  8.5   considering the recommendations of the 
  8.6   Association of Minnesota Public 
  8.7   Educational Radio Stations and 
  8.8   Minnesota Public Radio, Inc. 
  8.9   $25,000 the first year and $25,000 the 
  8.10  second year are for a grant to the 
  8.11  association of Minnesota public 
  8.12  education radio stations for station 
  8.13  KMOJ.  This money may be used for 
  8.14  equipment.  This appropriation is 
  8.15  separate from and in addition to money 
  8.16  appropriated for stations affiliated 
  8.17  with Minnesota Public Radio and the 
  8.18  Association of Minnesota Public Radio 
  8.19  Stations. 
  8.20  $350,000 the first year and $750,000 
  8.21  the second year are for grants for 
  8.22  public information television 
  8.23  transmission of legislative 
  8.24  activities.  At least one-half must go 
  8.25  for programming to be broadcast in 
  8.26  rural Minnesota. 
  8.27  $25,000 the first year and $25,000 the 
  8.28  second year are for grants to the Twin 
  8.29  Cities regional cable channel. 
  8.30  $750,000 in matching funds is available 
  8.31  the first year to Twin Cities public 
  8.32  television for the construction of a 
  8.33  digital broadcast transmission facility.
  8.34  If an appropriation for either year for 
  8.35  grants to public television or radio 
  8.36  stations is not sufficient, the 
  8.37  appropriation for the other year is 
  8.38  available for it. 
  8.39  Before receiving funding under this 
  8.40  section, each public radio or public 
  8.41  television station or network that is 
  8.42  to receive funding must agree to submit 
  8.43  a report to the commissioner.  The 
  8.44  report must list all sources of revenue 
  8.45  for the station or network and any 
  8.46  for-profit subsidiaries.  This must 
  8.47  include all federal, state, or local 
  8.48  funds received; private and corporate 
  8.49  gifts, grants, and other donations, 
  8.50  including conditions placed on the use 
  8.51  of these; investment earnings; and a 
  8.52  programming list.  This report must be 
  8.53  submitted by January 31, 1998; January 
  8.54  31, 1999; and January 31, 2000.  Each 
  8.55  report must cover the previous calendar 
  8.56  year. 
  8.57  Funds appropriated for the benefit of 
  8.58  Minnesota public radio or an affiliate 
  8.59  station of Minnesota public radio are 
  8.60  available for expenditure only if 
  8.61  Minnesota public radio sells KSJN 99.5 
  8.62  to a minority group providing 
  8.63  programming for the minority community 
  8.64  of the metropolitan area. 
  9.1   Subd. 9.  Children's Museum 
  9.2          165,000         165,000
  9.3   This appropriation is for a grant to 
  9.4   the Minnesota Children's Museum. 
  9.5   Subd. 10.  Star Program  
  9.6          175,000         175,000
  9.7   Subd. 11.  Hockey Hall of Fame 
  9.8   $300,000 the first year is for a grant 
  9.9   to the hockey hall of fame in Eveleth.  
  9.10  Any money not spent the first year is 
  9.11  available the second year. 
  9.12  Up to $150,000 of this grant is 
  9.13  available for capital improvements and 
  9.14  building and grounds maintenance. 
  9.15  At least $150,000 of this grant must be 
  9.16  used to establish an endowment for the 
  9.17  hall of fame.  The portion of the grant 
  9.18  to be used for an endowment is 
  9.19  available in $25,000 increments only if 
  9.20  matched by nonstate funds.  The 
  9.21  principle amount placed in an endowment 
  9.22  fund must remain in the fund.  The hall 
  9.23  of fame may spend only interest and 
  9.24  other earnings on the principle. 
  9.25  Subd. 12.  American Bald Eagle
  9.26  Center 
  9.27  $700,000 is for a grant to the city of 
  9.28  Wabasha to be used for development of 
  9.29  the American Bald Eagle Center.  This 
  9.30  appropriation is available for the 
  9.31  biennium ending June 30, 1999. 
  9.32  Subd. 13.  Voyageur Center 
  9.33  $250,000 is for a grant to the city of 
  9.34  International Falls for the predesign 
  9.35  and design of an interpretive library 
  9.36  and conference center.  This grant is 
  9.37  available only upon demonstration that 
  9.38  a dollar-for-dollar match from nonstate 
  9.39  funds has been raised.  The center 
  9.40  shall provide educational opportunities 
  9.41  and enhance tourism by presenting 
  9.42  information and displays that preserve 
  9.43  and interpret the history of the 
  9.44  voyageurs and animals involved with the 
  9.45  voyageurs, emphasizing the importance 
  9.46  of the fur trade to the history and 
  9.47  development of the region and the 
  9.48  state.  The center shall include 
  9.49  conference facilities.  The center 
  9.50  shall be located in the city of 
  9.51  International Falls.  The city may 
  9.52  enter into a lease or management 
  9.53  contract with a nonprofit entity for 
  9.54  operation of the center.  In developing 
  9.55  plans for the facility, the 
  9.56  commissioner must consult with the 
  9.57  small business development center 
  9.58  located at Rainy River Community 
  9.59  College. 
 10.1   Subd. 14.  Intergovernmental Information
 10.2   Systems Advisory Council 
 10.3          780,000         281,000
 10.4   $280,000 the first year and $281,000 
 10.5   the second year must be subtracted from 
 10.6   local government aid under Minnesota 
 10.7   Statutes, chapter 477A in order to fund 
 10.8   the intergovernmental information 
 10.9   systems advisory council. 
 10.10  Funds that were made available to 
 10.11  develop the local government financial 
 10.12  reporting system in Laws 1994, chapter 
 10.13  587, article 3, section 3, clause (5), 
 10.14  shall also be used to implement and 
 10.15  operate the system. 
 10.16  The intergovernmental information 
 10.17  systems advisory council shall create a 
 10.18  committee to provide direction for the 
 10.19  ongoing operation and maintenance of 
 10.20  the local government financial 
 10.21  reporting system similar to the 
 10.22  recommendation made in the initial 
 10.23  report to the legislative commission on 
 10.24  planning and fiscal policy.  Members 
 10.25  shall include one member each from the 
 10.26  legislature, office of the state 
 10.27  auditor, department of revenue, 
 10.28  department of finance, counties, 
 10.29  cities, townships, special districts, 
 10.30  and a member from the general financial 
 10.31  community. 
 10.32  $500,000 in fiscal year 1998 is for a 
 10.33  grant of up to $300,000 to a consortium 
 10.34  of law enforcement agencies to develop 
 10.35  a pilot project called the multiple 
 10.36  jurisdiction network project (MJNP) and 
 10.37  for grants up to a total of $200,000 to 
 10.38  law enforcement agencies to allow the 
 10.39  MJNP system to expand throughout the 
 10.40  rest of the metropolitan area as 
 10.41  defined in Minnesota Statutes, section 
 10.42  473.121, subdivision 2, and to become a 
 10.43  statewide network.  The IISAC must work 
 10.44  with the MJNP organizations to develop 
 10.45  a plan to manage the MJNP project.  Up 
 10.46  to $25,000 of the appropriation may be 
 10.47  used to develop the plan. 
 10.48  Subd. 15.  Bloomington Arts Center 
 10.49  $500,000 is for a grant to the 
 10.50  Bloomington Arts Center.  This 
 10.51  appropriation is available only upon 
 10.52  demonstration of a dollar-for-dollar 
 10.53  match from nonstate sources. 
 10.54  Subd. 16.  State Archaeologist 
 10.55  $166,000 the first year and $168,000 
 10.56  the second year are for the office of 
 10.57  the state archaeologist. 
 10.58  Sec. 13.  MINNESOTA OFFICE 
 10.59  OF TECHNOLOGY                          4,361,000      3,912,000 
 10.60  $1,270,000 is for the North Star 
 11.1   initiative.  The appropriation is 
 11.2   available until expended. 
 11.3   $2,326,000 the first year and 
 11.4   $2,377,000 the second year are for the 
 11.5   operations of the office of technology. 
 11.6   $500,000 the first year is for support 
 11.7   of activities associated with a 
 11.8   plenipotentiary conference of the 
 11.9   International Telecommunications Union. 
 11.10  $1,000,000 is to operate the Minnesota 
 11.11  Internet Center and to develop 
 11.12  community technology resources under 
 11.13  Minnesota Statutes, sections 237B.11 to 
 11.14  237B.14.  The appropriation is 
 11.15  available until expended. 
 11.16  $400,000 each year is for development 
 11.17  of a United Nations trade point in the 
 11.18  state. 
 11.19  The office of technology shall assess 
 11.20  the feasibility of providing 
 11.21  interactive government services via the 
 11.22  North Star network. 
 11.23  Space occupied by that portion of the 
 11.24  information policy office that is 
 11.25  transferred to the office of technology 
 11.26  is transferred to control of the office 
 11.27  of technology. 
 11.28  Sec. 14.  CAPITOL AREA ARCHITECTURAL 
 11.29  AND PLANNING BOARD                       356,000        289,000
 11.30  The appropriation in Laws 1996, chapter 
 11.31  390, section 5, for revision of the 
 11.32  board's comprehensive plan and zoning 
 11.33  ordinance is available until June 30, 
 11.34  1998.  
 11.35  $50,000 for the biennium is to plan a 
 11.36  Coya Knutson memorial on the capitol 
 11.37  grounds. 
 11.38  Sec. 15.  FINANCE 
 11.39  Subdivision 1.  Total 
 11.40  Appropriation                         25,631,000     26,410,000
 11.41  The amounts that may be spent from this 
 11.42  appropriation for each program are 
 11.43  specified in the following subdivisions.
 11.44  Subd. 2.  Accounting Services  
 11.45       4,696,000      4,795,000
 11.46  Subd. 3.  Accounts Receivable
 11.47  Operations
 11.48       1,476,000      1,513,000
 11.49  Subd. 4.  Budget Services 
 11.50       2,129,000      2,189,000
 11.51  The term "annualization of new 
 11.52  programs" as used in the detailed 
 12.1   budget estimates shall be changed to 
 12.2   "new programs to agency base." 
 12.3   Subd. 5.  Economic Analysis  
 12.4          313,000        319,000
 12.5   Subd. 6.  Information Services 
 12.6       15,415,000    15,963,000
 12.7   The commissioner, in consultation with 
 12.8   the legislative auditor's office and 
 12.9   interested legislators and legislative 
 12.10  staff, shall make recommendations to 
 12.11  the legislature on increasing the 
 12.12  relevance, usefulness, and benefits of 
 12.13  performance reports and increasing the 
 12.14  efficiency of the report development 
 12.15  process.  The commissioner shall report 
 12.16  to the chairs of the state government 
 12.17  finance divisions in the house and the 
 12.18  senate by February 2, 1998. 
 12.19  Subd. 7.  Management Services 
 12.20       1,602,000      1,631,000
 12.21  Sec. 16.  EMPLOYEE RELATIONS 
 12.22  Subdivision 1.  Total 
 12.23  Appropriation                          8,740,000      7,293,000
 12.24  The amounts that may be spent from this 
 12.25  appropriation for each program are 
 12.26  specified in the following subdivisions.
 12.27  Subd. 2.  Human Resources
 12.28  Management
 12.29       7,286,000      7,189,000
 12.30  $560,000 the first year and $315,000 
 12.31  the second year are for continuation of 
 12.32  reforms to the state's human resource 
 12.33  management processes and policies, 
 12.34  including, but not limited to, 
 12.35  enhancing redeployment procedures, 
 12.36  application and testing services, 
 12.37  hiring, the position classification 
 12.38  system, and employee development 
 12.39  processes.  The commissioner of finance 
 12.40  shall include $140,000 of the second 
 12.41  year amount when determining the base 
 12.42  level for the budget of the department 
 12.43  of employee relations for the biennium 
 12.44  ending June 30, 2001. 
 12.45  $22,000 each year is to fund a position 
 12.46  to administer the state's annual 
 12.47  combined charities program. 
 12.48  During the biennium ending June 30, 
 12.49  1999, the commissioner shall attempt to 
 12.50  recruit Minnesota welfare recipients to 
 12.51  fill at least ten percent of vacancies 
 12.52  in entry level state positions. 
 12.53  This appropriation includes money for a 
 12.54  grant each year to the government 
 12.55  training service. 
 13.1   Subd. 3.  Employee Insurance
 13.2        1,454,000        104,000
 13.3   $104,000 the first year and $104,000 
 13.4   the second year are for the 
 13.5   right-to-know contracts administered 
 13.6   through the employee insurance division.
 13.7   $1,000,000 in the first year is a 
 13.8   one-time appropriation to establish a 
 13.9   state workers' compensation settlement 
 13.10  and contingency reserve.  This 
 13.11  appropriation must be transferred to a 
 13.12  separate account within the 
 13.13  miscellaneous special revenue fund, 
 13.14  from which payments may be made and 
 13.15  premiums assessed to replenish the 
 13.16  reserve account under new Minnesota 
 13.17  Statutes, section 176.611, subdivision 
 13.18  2a. 
 13.19  During the biennium ending June 30, 
 13.20  1999, the amount necessary to pay 
 13.21  premiums for coverage by the worker's 
 13.22  compensation reinsurance association 
 13.23  under Minnesota Statutes, section 
 13.24  79.34, is appropriated from the general 
 13.25  fund to the commissioner. 
 13.26  Sec. 17.  REVENUE 
 13.27  Subdivision 1.  Total  
 13.28  Appropriation                         79,651,000     81,883,000
 13.29                Summary by Fund
 13.30  General              77,511,000    79,694,000
 13.31  Highway User 
 13.32  Tax Distribution     2,044,000     2,091,000
 13.33  Environmental            96,000        98,000
 13.34  The amounts that may be spent from this 
 13.35  appropriation for each program are 
 13.36  specified in the following subdivisions.
 13.37  Subd. 2.  Income Tax 
 13.38      14,297,000     14,549,000
 13.39  Subd. 3.  Business Excise and Consumption
 13.40      13,657,000     13,972,000
 13.41  $150,000 each year from the highway use 
 13.42  tax distribution fund is for funding of 
 13.43  the dyed fuel program.  This 
 13.44  appropriation is reduced by the amount 
 13.45  of any federal grants available for use 
 13.46  during the biennium for dyed fuel 
 13.47  enforcement purposes. 
 13.48                Summary by Fund
 13.49  General              11,517,000    11,783,000
 13.50  Highway User 
 13.51  Tax Distribution     2,044,000     2,091,000
 14.1   Environmental            96,000        98,000
 14.2   Subd. 4.  Property Tax and State Aids 
 14.3        2,869,000      3,026,000
 14.4   Subd. 5.  Tax Operations 
 14.5       27,679,000     28,207,000
 14.6   Subd. 6.  Legal and Research 
 14.7        3,830,000      3,832,000
 14.8   $80,000 is for completion of the 
 14.9   Minnesota/Wisconsin tax reciprocity 
 14.10  study. 
 14.11  Subd. 7.  Administrative Support 
 14.12      15,887,000     16,827,000
 14.13  Subd. 8.  Accounts Receivable 
 14.14       2,123,000      2,161,000
 14.15  During the biennium ending June 30, 
 14.16  1999, when a debt owed to any entity of 
 14.17  state government for which the 
 14.18  Minnesota collection enterprise has 
 14.19  jurisdiction becomes 121 days past due, 
 14.20  the state entity must refer the account 
 14.21  to the commissioner of revenue for 
 14.22  assignment to the Minnesota collection 
 14.23  enterprise.  This requirement does not 
 14.24  apply if there is a dispute over the 
 14.25  amount or validity of the debt, or the 
 14.26  agency determines that the debtor is 
 14.27  adhering to acceptable payment 
 14.28  arrangements.  Methods and procedures 
 14.29  for referral shall follow internal 
 14.30  guidelines prepared by the commissioner 
 14.31  of finance.  The enterprise may refer a 
 14.32  debt to a private collection agency. 
 14.33  Sec. 18.  MILITARY AFFAIRS  
 14.34  Subdivision 1.  Total 
 14.35  Appropriation                         10,416,000    10,527,000
 14.36  The amounts that may be spent from this 
 14.37  appropriation for each program are 
 14.38  specified in the following subdivisions.
 14.39  Subd. 2.  Maintenance of Training 
 14.40  Facilities 
 14.41        6,056,000     6,129,000
 14.42  Subd. 3.  General Support
 14.43        2,008,000     2,045,000
 14.44  $75,000 the first year and $75,000 the 
 14.45  second year are for expenses of 
 14.46  military forces ordered to active duty 
 14.47  under Minnesota Statutes, chapter 192.  
 14.48  If the appropriation for either year is 
 14.49  insufficient, the appropriation for the 
 14.50  other year is available for it.  
 15.1   $400,000 each year is for a pilot 
 15.2   project to make armories available for 
 15.3   recreational activities for youth.  
 15.4   This amount shall not be included in 
 15.5   the agency's base for future 
 15.6   bienniums.  Scheduling of these 
 15.7   activities is subject to approval of 
 15.8   the adjutant general.  The project must 
 15.9   include, but is not limited to, 
 15.10  armories in Minneapolis and on the east 
 15.11  side of St. Paul.  The adjutant general 
 15.12  shall report to the chairs of the state 
 15.13  government finance divisions in the 
 15.14  house and the senate on the results of 
 15.15  the pilot project, including the number 
 15.16  of youth served, programs provided, 
 15.17  benefits of the programs to communities 
 15.18  served, and the cost of administering 
 15.19  the project. 
 15.20  Subd. 4.  Enlistment Incentives
 15.21       2,352,000      2,353,000 
 15.22  Obligations for the reenlistment bonus 
 15.23  program, suspended on December 31, 
 15.24  1991, shall be paid from the amounts 
 15.25  available within the enlistment 
 15.26  incentives program. 
 15.27  If appropriations for either year of 
 15.28  the biennium are insufficient, the 
 15.29  appropriation from the other year is 
 15.30  available.  The appropriations for 
 15.31  enlistment incentives are available 
 15.32  until expended. 
 15.33  Sec. 19.  VETERANS AFFAIRS            12,979,000     12,799,000
 15.34  $231,000 the first year and $232,000 
 15.35  the second year are for grants to 
 15.36  county veterans offices for training of 
 15.37  county veterans service officers. 
 15.38  $1,544,000 the first year and 
 15.39  $1,544,000 the second year are for 
 15.40  emergency financial and medical needs 
 15.41  of veterans.  If the appropriation for 
 15.42  either year is insufficient, the 
 15.43  appropriation for the other year is 
 15.44  available for it.  
 15.45  With the approval of the commissioner 
 15.46  of finance, the commissioner of 
 15.47  veterans affairs may transfer the 
 15.48  unencumbered balance from the veterans 
 15.49  relief program to other department 
 15.50  programs during the fiscal year.  
 15.51  Before the transfer, the commissioner 
 15.52  of veterans affairs shall explain why 
 15.53  the unencumbered balance exists.  The 
 15.54  amounts transferred must be identified 
 15.55  to the chairs of the senate 
 15.56  governmental operations budget 
 15.57  committee and the house governmental 
 15.58  operations and gambling committee 
 15.59  division on state government finance. 
 15.60  $250,000 the first year and $250,000 
 15.61  the second year are for a grant to the 
 15.62  Vinland National Center. 
 16.1   $110,000 is for a matching grant for a 
 16.2   memorial to be constructed in the city 
 16.3   of Park Rapids to honor veterans from 
 16.4   all wars involving armed forces of the 
 16.5   United States.  In-kind donations may 
 16.6   be used for the nonstate match.  The 
 16.7   appropriation does not expire and is 
 16.8   available until expended.  $10,000 of 
 16.9   this amount is for administrative costs.
 16.10  $110,000 the first year is to make a 
 16.11  grant to the Red Tail Project of the 
 16.12  Southern Minnesota Wing of the 
 16.13  Confederate Air Force and Tuskeegee 
 16.14  Airmen, Inc., to restore a P-51C 
 16.15  Mustang World War II fighter plane to 
 16.16  honor the airmen known as the 
 16.17  "Tuskeegee Airmen."  The appropriation 
 16.18  must be matched by nonstate 
 16.19  contributions to the project.  $10,000 
 16.20  of this amount is for administrative 
 16.21  costs. 
 16.22  $17,000,000 is to make bonus payments 
 16.23  authorized under Minnesota Statutes, 
 16.24  section 197.79.  The appropriation may 
 16.25  not be used for administrative 
 16.26  purposes.  The appropriation does not 
 16.27  expire until the commissioner acts on 
 16.28  all applications submitted under 
 16.29  Minnesota Statutes, section 197.79. 
 16.30  $500,000 is to administer the bonus 
 16.31  program established under Minnesota 
 16.32  Statutes, section 197.79.  The 
 16.33  appropriation does not expire until the 
 16.34  commissioner acts on all the 
 16.35  applications submitted under Minnesota 
 16.36  Statutes, section 197.79. 
 16.37  Sec. 20.  VETERANS OF FOREIGN 
 16.38  WARS                                      41,000         41,000
 16.39  For carrying out the provisions of Laws 
 16.40  1945, chapter 455. 
 16.41  Sec. 21.  MILITARY ORDER OF 
 16.42  THE PURPLE HEART                          20,000         20,000
 16.43  Sec. 22.  DISABLED AMERICAN VETERANS      13,000         13,000
 16.44  For carrying out the provisions of Laws 
 16.45  1941, chapter 425. 
 16.46  Sec. 23.  LAWFUL GAMBLING  
 16.47  CONTROL                                 2,205,000     2,249,000
 16.48  Sec. 24.  RACING COMMISSION              371,000        379,000
 16.49  If legislation is enacted that provides 
 16.50  for increased revenue at the Canterbury 
 16.51  Park horse racing facility, a minimum 
 16.52  of $250,000 per year of this revenue 
 16.53  must be paid to Jockeys' Guild Health 
 16.54  and Welfare Trust to be maintained by 
 16.55  Jockeys' Guild, Inc. for the purpose of 
 16.56  providing health and welfare benefits 
 16.57  to active jockeys and persons who 
 16.58  become disabled, or retired jockeys 
 16.59  after the effective date of this 
 16.60  section, in accordance with reasonable 
 17.1   rules for eligibility for such benefits.
 17.2   If there is an agreement between 
 17.3   Canterbury Park and another 
 17.4   organization, including, but not 
 17.5   limited to, the horsemen's organization 
 17.6   representing a majority of the 
 17.7   horsemen, regarding the allocation of 
 17.8   any increase in revenue at Canterbury 
 17.9   Park, such agreement shall not in any 
 17.10  way change the obligation of Canterbury 
 17.11  Park to distribute the apportioned 
 17.12  revenue to the Jockeys' Guild Health 
 17.13  and Welfare Trust as provided above. 
 17.14  Sec. 25.  STATE LOTTERY
 17.15  The director of the state lottery shall 
 17.16  reimburse the general fund $150,000 the 
 17.17  first year and $150,000 the second year 
 17.18  for lottery-related costs incurred by 
 17.19  the department of public safety. 
 17.20  The director of the state lottery shall 
 17.21  reimburse the general fund $540,000 the 
 17.22  first year and $540,000 the second year 
 17.23  for amounts appropriated from the 
 17.24  general fund to the commissioner of 
 17.25  human services for compulsive gambling 
 17.26  hotline services, outpatient treatment 
 17.27  services, felony screening, and 
 17.28  compulsive gambling youth education. 
 17.29  Sec. 26.  AMATEUR SPORTS 
 17.30  COMMISSION                             8,245,000        599,000
 17.31  $3,500,000 in fiscal year 1998 is for 
 17.32  grants for ice centers, under Minnesota 
 17.33  Statutes, section 240A.09.  The maximum 
 17.34  grant for a new facility is $250,000.  
 17.35  The maximum grant for rehabilitation 
 17.36  and renovation of an existing facility 
 17.37  is $100,000.  Any portion of this 
 17.38  appropriation that is not spent in 
 17.39  fiscal year 1998 carries forward and 
 17.40  may be spent in fiscal year 1999. 
 17.41  $4,000,000 for the biennium is for a 
 17.42  pilot project for youth sports as 
 17.43  provided in Minnesota Statutes, section 
 17.44  240A.12.  This amount must not be 
 17.45  included in the agency's base for 
 17.46  future bienniums.  The executive 
 17.47  director shall report to the chairs of 
 17.48  the state government finance division 
 17.49  in the house and the senate on the 
 17.50  results of the pilot project, including 
 17.51  the number of youth served, programs 
 17.52  provided, benefits of the programs to 
 17.53  communities served, and the cost of 
 17.54  administering the project. 
 17.55  $50,000 is for a grant to the United 
 17.56  States Olympic Committee's Minnesota 
 17.57  Olympic development program to fund the 
 17.58  development of winter sports programs 
 17.59  for females from ages 13 to 18.  The 
 17.60  money is available only upon 
 17.61  demonstration of a dollar for dollar 
 17.62  match from nonstate sources. 
 18.1   $75,000 is to study the feasibility of 
 18.2   constructing an indoor amateur tennis 
 18.3   facility in the city of St. Paul. 
 18.4   Sec. 27.  GENERAL CONTINGENT 
 18.5   ACCOUNTS                                 600,000        600,000
 18.6                 Summary by Fund
 18.7   General                 100,000       100,000
 18.8   State Government 
 18.9   Special Revenue         400,000       400,000
 18.10  Workers' Compensation   100,000       100,000
 18.11  The appropriations in this section must 
 18.12  be spent with the approval of the 
 18.13  governor after consultation with the 
 18.14  legislative advisory commission under 
 18.15  Minnesota Statutes, section 3.30. 
 18.16  If an appropriation in this section for 
 18.17  either year is insufficient, the 
 18.18  appropriation for the other year is 
 18.19  available for it. 
 18.20  The special revenue appropriation is 
 18.21  available to be transferred to the 
 18.22  attorney general when the costs to 
 18.23  provide legal services to the health 
 18.24  boards exceed the biennial 
 18.25  appropriation to the attorney general 
 18.26  from the special revenue fund and for 
 18.27  transfer to the health boards if 
 18.28  required for unforeseen expenditures of 
 18.29  an emergency nature.  The boards 
 18.30  receiving the additional services or 
 18.31  supplemental appropriations shall set 
 18.32  their fees to cover the costs. 
 18.33  Sec. 28.  TORT CLAIMS                    175,000        175,000
 18.34  To be spent by the commissioner of 
 18.35  finance.  
 18.36  If the appropriation for either year is 
 18.37  insufficient, the appropriation for the 
 18.38  other year is available for it.  
 18.39  Sec. 29.  MINNESOTA STATE   
 18.40  RETIREMENT SYSTEM                      2,266,000      2,379,000
 18.41  The amounts estimated to be needed for 
 18.42  each program are as follows: 
 18.43  (a) Legislators 
 18.44       2,093,000      2,197,000
 18.45  Under Minnesota Statutes, sections 
 18.46  3A.03, subdivision 2; 3A.04, 
 18.47  subdivisions 3 and 4; and 3A.11. 
 18.48  (b) Constitutional Officers 
 18.49         173,000        182,000
 18.50  Under Minnesota Statutes, sections 
 18.51  352C.031, subdivision 5; 352C.04, 
 18.52  subdivision 3; and 352C.09, subdivision 
 19.1   2. 
 19.2   If an appropriation in this section for 
 19.3   either year is insufficient, the 
 19.4   appropriation for the other year is 
 19.5   available for it. 
 19.6   Sec. 30.  MINNEAPOLIS EMPLOYEES 
 19.7   RETIREMENT FUND                       11,005,000      9,550,000
 19.8   $10,455,000 the first year and 
 19.9   $9,000,000 the second year are to the 
 19.10  commissioner of finance for payment to 
 19.11  the Minneapolis employees retirement 
 19.12  fund under Minnesota Statutes, section 
 19.13  422A.101, subdivision 3.  Payment must 
 19.14  be made in four equal installments, 
 19.15  March 15, July 15, September 15, and 
 19.16  November 15, each year.  
 19.17  $550,000 the first year and $550,000 
 19.18  the second year are to the commissioner 
 19.19  of finance for payment to the 
 19.20  Minneapolis employees retirement fund 
 19.21  for the supplemental benefit for 
 19.22  pre-1973 retirees under Minnesota 
 19.23  Statutes, section 356.865. 
 19.24  Sec. 31.  POLICE AND FIRE   
 19.25  AMORTIZATION AID                       6,303,000      6,300,000
 19.26  $......... the first year and 
 19.27  $......... the second year are to the 
 19.28  commissioner of revenue for state aid 
 19.29  to amortize the unfunded liability of 
 19.30  local police and salaried firefighters' 
 19.31  relief associations, under Minnesota 
 19.32  Statutes, section 423A.02. 
 19.33  $......... the first year and 
 19.34  $......... the second year are to the 
 19.35  commissioner of revenue for 
 19.36  supplemental state aid to amortize the 
 19.37  unfunded liability of local police and 
 19.38  salaried firefighters' relief 
 19.39  associations under Minnesota Statutes, 
 19.40  section 423A.02, subdivision 1a. 
 19.41  $....... the first year and $....... 
 19.42  the second year are to the commissioner 
 19.43  of revenue to pay reimbursements to 
 19.44  relief associations for firefighter 
 19.45  supplemental benefits paid under 
 19.46  Minnesota Statutes, section 424A.10. 
 19.47  Sec. 32.  BOARD OF GOVERNMENT   
 19.48  INNOVATION AND COOPERATION                1,406,000    1,009,000
 19.49  $200,000 is for a grant to a joint 
 19.50  powers board, if one is established by 
 19.51  the counties of Benton, Sherburne, and 
 19.52  Stearns, and the cities of St. Cloud, 
 19.53  Waite Park, Sartell, St. Joseph, and 
 19.54  Sauk Rapids, for a joint planning pilot 
 19.55  project.  The board may make the grant 
 19.56  after the joint powers board is formed 
 19.57  and a copy of the joint powers 
 19.58  agreement is received by the board. 
 19.59  $150,000 is for a grant to a joint 
 19.60  powers board, if one is established by 
 20.1   the counties of Benton, Sherburne, and 
 20.2   Stearns, for a joint planning pilot 
 20.3   project in areas not included in 
 20.4   another joint powers board.  The board 
 20.5   may make the grant after the joint 
 20.6   powers board is formed and a copy of 
 20.7   the joint powers agreement is received 
 20.8   by the board. 
 20.9   $50,000 is to conduct a study of 
 20.10  splitting St. Louis county into two 
 20.11  counties.  The board shall work with 
 20.12  the St. Louis county board of 
 20.13  commissioners and any other necessary 
 20.14  parties in conducting the study. 
 20.15  The study shall include but is not 
 20.16  limited to:  the positive or negative 
 20.17  costs of reorganizing county 
 20.18  government, any positive or negative 
 20.19  impacts on the delivery of services in 
 20.20  the new counties, how public employees 
 20.21  would be affected in the transfer of 
 20.22  services, the feasibility of adjacent 
 20.23  counties or portions of counties, 
 20.24  outside of either of the newly created 
 20.25  counties, consolidating with one of the 
 20.26  newly created counties, and any other 
 20.27  issues the county board deems 
 20.28  necessary.  The study shall also 
 20.29  include transitional issues, such as 
 20.30  splitting assets and liabilities and 
 20.31  levy authority.  The board shall report 
 20.32  to the legislature by January 15, 1998. 
 20.33  Sec. 33.  BOND SALE SCHEDULE 
 20.34  The commissioner of finance shall 
 20.35  schedule the sale of state general 
 20.36  obligation bonds so that, during the 
 20.37  biennium ending June 30, 1999, no more 
 20.38  than $545,457,000 will need to be 
 20.39  transferred from the general fund to 
 20.40  the state bond fund to pay principal 
 20.41  and interest due and to become due on 
 20.42  outstanding state general obligation 
 20.43  bonds.  During the biennium, before 
 20.44  each sale of state general obligation 
 20.45  bonds, the commissioner of finance 
 20.46  shall calculate the amount of debt 
 20.47  service payments needed on bonds 
 20.48  previously issued and shall estimate 
 20.49  the amount of debt service payments 
 20.50  that will be needed on the bonds 
 20.51  scheduled to be sold, the commissioner 
 20.52  shall adjust the amount of bonds 
 20.53  scheduled to be sold so as to remain 
 20.54  within the limit set by this section.  
 20.55  The amount needed to make the debt 
 20.56  service payments is appropriated from 
 20.57  the general fund as provided in 
 20.58  Minnesota Statutes, section 16A.641. 
 20.59     Sec. 34.  Minnesota Statutes 1996, section 1.35, 
 20.60  subdivision 2, is amended to read: 
 20.61     Subd. 2.  [OFFICERS.] The members of the technical advisory 
 20.62  task force shall select a chair and other officers as deemed 
 21.1   necessary.  The chair of the commission shall rotate every two 
 21.2   years between the house and the senate. 
 21.3      Sec. 35.  Minnesota Statutes 1996, section 3.056, is 
 21.4   amended to read: 
 21.5      3.056 [DESIGNATION OF SUCCESSOR COMMITTEE.] 
 21.6      If a law assigns a power or duty to a named legislative 
 21.7   committee or its chair, and the committee has been renamed or no 
 21.8   longer exists, the speaker of the house of representatives or 
 21.9   the senate committee on rules and administration shall designate 
 21.10  the successor committee or chair for the law as provided in this 
 21.11  section.  If the committee has been renamed but retains 
 21.12  jurisdiction of the subject of the power or duty, the speaker or 
 21.13  senate committee shall designate the renamed committee as 
 21.14  successor.  If the committee has been renamed and jurisdiction 
 21.15  of the subject of the power or duty has been transferred to 
 21.16  another committee, the speaker or senate committee shall 
 21.17  designate the committee with current jurisdiction as the 
 21.18  successor.  If the named committee no longer exists, the speaker 
 21.19  or senate committee shall designate as successor the committee 
 21.20  with the jurisdiction that most closely corresponds with the 
 21.21  former jurisdiction of the named committee.  The house of 
 21.22  representatives and the senate shall maintain a list on the 
 21.23  World Wide Web of renamed or successor committees to committees 
 21.24  that are referenced in law. 
 21.25     Sec. 36.  Minnesota Statutes 1996, section 3.225, 
 21.26  subdivision 1, is amended to read: 
 21.27     Subdivision 1.  [APPLICATION.] This section applies to a 
 21.28  contract for professional or technical services entered into by 
 21.29  the house of representatives, the senate, the legislative 
 21.30  coordinating commission, or any group under the jurisdiction of 
 21.31  the legislative coordinating commission.  For purposes of this 
 21.32  section, "professional or technical services" contract has the 
 21.33  meaning defined in section 16B.17 but does not include legal 
 21.34  services for official legislative business. 
 21.35     Sec. 37.  Minnesota Statutes 1996, section 3.85, 
 21.36  subdivision 3, is amended to read: 
 22.1      Subd. 3.  [MEMBERSHIP.] The commission consists of five 
 22.2   seven members of the senate appointed by the subcommittee on 
 22.3   committees of the committee on rules and administration and five 
 22.4   seven members of the house of representatives appointed by the 
 22.5   speaker.  Members shall be appointed at the commencement of each 
 22.6   regular session of the legislature for a two-year term beginning 
 22.7   January 16 of the first year of the regular session.  Vacancies 
 22.8   that occur while the legislature is in session shall be filled 
 22.9   like regular appointments.  If the legislature is not in 
 22.10  session, senate vacancies shall be filled by the last 
 22.11  subcommittee on committees of the senate committee on rules and 
 22.12  administration or other appointing authority designated by the 
 22.13  senate rules, and house vacancies shall be filled by the last 
 22.14  speaker of the house, or if the speaker is not available, by the 
 22.15  last chair of the house rules committee. 
 22.16     Sec. 38.  Minnesota Statutes 1996, section 10A.071, 
 22.17  subdivision 3, is amended to read: 
 22.18     Subd. 3.  [EXCEPTIONS.] (a) The prohibitions in this 
 22.19  section do not apply if the gift is: 
 22.20     (1) a contribution as defined in section 10A.01, 
 22.21  subdivision 7; 
 22.22     (2) services to assist an official in the performance of 
 22.23  official duties, including but not limited to providing advice, 
 22.24  consultation, information, and communication in connection with 
 22.25  legislation, and services to constituents; 
 22.26     (3) services of insignificant monetary value; 
 22.27     (4) a plaque or similar memento recognizing individual 
 22.28  services in a field of specialty or to a charitable cause; 
 22.29     (5) a trinket or memento of insignificant value; 
 22.30     (6) informational material of unexceptional value; or 
 22.31     (7) food or a beverage given at a reception, meal, or 
 22.32  meeting away from the recipient's place of work by an 
 22.33  organization before whom the recipient appears to make a speech 
 22.34  or answer questions as part of a program; or 
 22.35     (8) less than $5 in total value on any given day. 
 22.36     (b) The prohibitions in this section do not apply if the 
 23.1   gift is given: 
 23.2      (1) because of the recipient's membership in a group, a 
 23.3   majority of whose members are not officials, and an equivalent 
 23.4   gift is given to the other members of the group; or 
 23.5      (2) by a lobbyist or principal who is a member of the 
 23.6   family of the recipient, unless the gift is given on behalf of 
 23.7   someone who is not a member of that family. 
 23.8      Sec. 39.  Minnesota Statutes 1996, section 10A.09, 
 23.9   subdivision 6, is amended to read: 
 23.10     Subd. 6.  Each individual who is required to file a 
 23.11  statement of economic interest shall file a supplementary 
 23.12  statement on April 15 of each year that the individual remains 
 23.13  in office if information on the most recently filed statement 
 23.14  has changed.  The statement shall include a space for each 
 23.15  category of information in which the individual may indicate 
 23.16  that no change in information has occurred since the previous 
 23.17  statement.  The supplementary statement, if required, shall 
 23.18  include the amount of each honorarium in excess of $50 received 
 23.19  since the previous statement, together with the name and address 
 23.20  of the source of the honorarium.  A statement of economic 
 23.21  interest submitted by an officeholder shall be filed with the 
 23.22  statement submitted as a candidate. 
 23.23     Sec. 40.  Minnesota Statutes 1996, section 10A.20, 
 23.24  subdivision 2, is amended to read: 
 23.25     Subd. 2.  The reports shall be filed with the board on or 
 23.26  before January 31 of each year and additional reports shall be 
 23.27  filed as required and in accordance with clauses (a) and (b).  
 23.28     (a) In each year in which the name of the candidate is on 
 23.29  the ballot, the report of the principal campaign committee shall 
 23.30  be filed ten 15 days before a primary and ten days before a 
 23.31  general election, seven days before a special primary and a 
 23.32  special election, and ten days after a special election cycle.  
 23.33  The report due after a special election may be filed on January 
 23.34  31 following the special election if the special election is 
 23.35  held not more than 60 days before that date.  
 23.36     (b) In each general election year political committees and 
 24.1   political funds other than principal campaign committees shall 
 24.2   file reports ten days before a primary and general election.  
 24.3      If a scheduled filing date falls on a Saturday, Sunday or 
 24.4   legal holiday, the filing date shall be the next regular 
 24.5   business day. 
 24.6      Sec. 41.  [10A.205] [SOFTWARE FEE.] 
 24.7      The board shall charge a fee of $20 for purchase of 
 24.8   software developed by the board for campaign finance reporting.  
 24.9   Fees shall be deposited in the state treasury and credited to 
 24.10  the general fund. 
 24.11     Sec. 42.  Minnesota Statutes 1996, section 15.0597, 
 24.12  subdivision 5, is amended to read: 
 24.13     Subd. 5.  [NOMINATIONS FOR VACANCIES.] Any person may make 
 24.14  a self-nomination for appointment to an agency vacancy by 
 24.15  completing an application on a form prepared and distributed by 
 24.16  the secretary.  The secretary may provide for the submission of 
 24.17  the application by electronic means.  Any person or group of 
 24.18  persons may, on the prescribed application form, nominate 
 24.19  another person to be appointed to a vacancy so long as the 
 24.20  person so nominated consents in writing on the application form 
 24.21  to the nomination.  The application form shall specify the 
 24.22  nominee's name, mailing address, telephone number, preferred 
 24.23  agency position sought, a statement that the nominee satisfies 
 24.24  any legally prescribed qualifications, and any other information 
 24.25  the nominating person feels would be helpful to the appointing 
 24.26  authority.  The nominating person has the option of indicating 
 24.27  the nominee's sex, political party preference or lack thereof, 
 24.28  status with regard to disability, race and national origin on 
 24.29  the application form.  The application form shall make the 
 24.30  option known.  If a person submits an application at the 
 24.31  suggestion of an appointing authority, the person shall so 
 24.32  indicate on the application form.  Twenty-one days after 
 24.33  publication of a vacancy in the State Register pursuant to 
 24.34  subdivision 4, the secretary shall submit copies of all 
 24.35  applications received for a position to the appointing authority 
 24.36  charged with filling the vacancy.  If no applications have been 
 25.1   received by the secretary for the vacant position by the date 
 25.2   when copies must be submitted to the appointing authority, the 
 25.3   secretary shall so inform the appointing authority.  
 25.4   Applications received by the secretary shall be deemed to have 
 25.5   expired one year after receipt of the application.  An 
 25.6   application for a particular agency position shall be deemed to 
 25.7   be an application for all vacancies in that agency occurring 
 25.8   prior to the expiration of the application and shall be public 
 25.9   information. 
 25.10     Sec. 43.  Minnesota Statutes 1996, section 15.0597, 
 25.11  subdivision 7, is amended to read: 
 25.12     Subd. 7.  [REPORT.] Together with the compilation required 
 25.13  in subdivision 3, the secretary shall annually deliver to the 
 25.14  governor and the legislature a report containing the following 
 25.15  information: 
 25.16     (1) the number of vacancies occurring in the preceding 
 25.17  year; 
 25.18     (2) the number of vacancies occurring as a result of 
 25.19  scheduled ends of terms, unscheduled vacancies and the creation 
 25.20  of new positions; 
 25.21     (3) breakdowns by county, legislative district, and 
 25.22  congressional district, and, if known, the sex, political party 
 25.23  preference or lack thereof, status with regard to disability, 
 25.24  race, and national origin, for members whose agency membership 
 25.25  terminated during the year and appointees to the vacant 
 25.26  positions; and 
 25.27     (4) the number of vacancies filled from applications 
 25.28  submitted by (i) the appointing authorities for the positions 
 25.29  filled, (ii) nominating persons and self-nominees who submitted 
 25.30  applications at the suggestion of appointing authorities, and 
 25.31  (iii) all others. 
 25.32     Sec. 44.  Minnesota Statutes 1996, section 15.0599, 
 25.33  subdivision 4, is amended to read: 
 25.34     Subd. 4.  [REGISTRATION; INFORMATION REQUIRED.] (a) The 
 25.35  appointing authority of a newly established agency shall provide 
 25.36  the secretary with the following information: 
 26.1      (1) the name, mailing address, and telephone number of the 
 26.2   agency; 
 26.3      (2) the legal authority for the establishment of the agency 
 26.4   and the name and the title of the person or persons appointing 
 26.5   agency members; 
 26.6      (3) the powers and duties of the agency and whether the 
 26.7   agency, however designated, is best described by section 15.012, 
 26.8   paragraph (a), (b), (c), (e), or (f); 
 26.9      (4) the number of authorized members, together with any 
 26.10  prescribed restrictions on eligibility; 
 26.11     (5) the roster of current members, including mailing 
 26.12  addresses and telephone numbers; 
 26.13     (6) a breakdown of the membership showing distribution by 
 26.14  county, legislative district, and congressional district and 
 26.15  compliance with any restrictions listed in accordance with 
 26.16  clause (4); 
 26.17     (7) if any members have voluntarily provided the 
 26.18  information, the sex, age, political preference or lack of 
 26.19  preference, status with regard to disability, race, and national 
 26.20  origin of those members; 
 26.21     (8) the dates of commencement and expiration of membership 
 26.22  terms and the expiration date of the agency, if any; 
 26.23     (9) the compensation of members and appropriations or other 
 26.24  money available to the agency; 
 26.25     (10) the name of the state agency or other entity, if any, 
 26.26  required to provide staff or administrative support to the 
 26.27  agency; 
 26.28     (11) the regular meeting schedule, if any, and the 
 26.29  approximate number of hours a month of meetings or other 
 26.30  activities required of members; and 
 26.31     (12) a brief statement of the goal or purpose of the 
 26.32  agency, along with a summary of what an existing agency has 
 26.33  done, or what a newly established agency plans to do to achieve 
 26.34  its goal or purpose. 
 26.35     (b) The chair of an existing agency shall provide 
 26.36  information, covering the fiscal year in which it is 
 27.1   registering, on the number of meetings it has held, its 
 27.2   expenses, and the number of staff hours, if any, devoted to its 
 27.3   support.  The chair shall also, if necessary, update any of the 
 27.4   information previously provided in accordance with paragraph (a).
 27.5      (c) The secretary shall provide forms for the reporting of 
 27.6   information required by this subdivision and may provide for 
 27.7   reporting by electronic means. 
 27.8      Sec. 45.  Minnesota Statutes 1996, section 15.50, is 
 27.9   amended by adding a subdivision to read: 
 27.10     Subd. 2b.  [ACCESSIBILITY.] In considering any proposal for 
 27.11  a new public building or memorial within the capitol area, the 
 27.12  board must ensure that the proposal provides accessibility for 
 27.13  persons with disabilities, as required by state and federal law. 
 27.14     Sec. 46.  Minnesota Statutes 1996, section 15.50, is 
 27.15  amended by adding a subdivision to read: 
 27.16     Subd. 2c.  [MAINTENANCE EXPENSES.] Ten percent of the 
 27.17  amount appropriated for a new memorial within the capitol area 
 27.18  must be placed in a separate account.  The amount, and 
 27.19  investment earnings on the amount, are available for the 
 27.20  legislature to appropriate for maintenance costs for the 
 27.21  memorial. 
 27.22     Sec. 47.  Minnesota Statutes 1996, section 15.91, 
 27.23  subdivision 2, is amended to read: 
 27.24     Subd. 2.  [PERFORMANCE REPORTS.] (a) By November 30 January 
 27.25  10 of each even-numbered year, each agency shall issue a 
 27.26  performance report that includes the following: 
 27.27     (1) the agency's mission; 
 27.28     (2) goals and objectives for each major program for which 
 27.29  the agency will request funding in its next biennial budget; 
 27.30     (3) identification of the populations served by the 
 27.31  programs; and 
 27.32     (4) workload, efficiency, output, and outcome measures for 
 27.33  each program listed in the report, with data showing each 
 27.34  programs' actual performance relative to these measures for the 
 27.35  previous four fiscal years and the performance the agency 
 27.36  projects it will achieve during the next two fiscal years with 
 28.1   the level of funding it has requested. 
 28.2      (b) That portion of the performance report designed for 
 28.3   presentation to legislative committees must: 
 28.4      (1) succinctly describe the most important goals or 
 28.5   objectives for each of the agency's major programs, as those 
 28.6   programs were displayed in the most recent detailed biennial 
 28.7   budget document presented to the legislature; and 
 28.8      (2) succinctly present information that measures outcomes 
 28.9   that the agency has achieved with the money that the legislature 
 28.10  has appropriated, either directly or as a result of a standing 
 28.11  appropriation, for each major program. 
 28.12  Information under this paragraph must be presented in a format 
 28.13  that permits legislators to directly link program appropriations 
 28.14  with program outcomes. 
 28.15     (c) If it would enhance an understanding of its mission, 
 28.16  programs, and performance, the agency shall include in its 
 28.17  report information that describes the broader economic, social, 
 28.18  and physical environment in which the agency's programs are 
 28.19  administered. 
 28.20     (d) Each agency shall send a copy of its performance report 
 28.21  to the speaker of the house, president of the senate, 
 28.22  legislative auditor, and legislative reference library, and 
 28.23  provide a copy to others upon request. 
 28.24     (e) The commissioner of finance shall ensure that 
 28.25  performance reports are complete, accurate, and reliable and 
 28.26  compiled in such a way that they are useful to the public, 
 28.27  legislators, and managers in state government.  To maintain a 
 28.28  computerized performance data system, the commissioner of 
 28.29  finance may require agencies to provide performance data 
 28.30  annually. 
 28.31     (f) The legislative auditor shall review and comment on 
 28.32  performance reports as provided for by section 3.971, 
 28.33  subdivision 3. 
 28.34     Sec. 48.  Minnesota Statutes 1996, section 16A.10, 
 28.35  subdivision 2, is amended to read: 
 28.36     Subd. 2.  [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of 
 29.1   each even-numbered year, an agency must file the following with 
 29.2   the commissioner:  
 29.3      (1) budget and departmental earnings estimates for the most 
 29.4   recent and current fiscal years; 
 29.5      (2) its upcoming biennial budget and departmental earnings 
 29.6   estimates; 
 29.7      (3) a comprehensive and integrated statement of agency 
 29.8   missions and outcome and performance measures; and 
 29.9      (4) a concise explanation of any planned changes in the 
 29.10  level of services or new activities. 
 29.11     The commissioner shall prepare and file the budget 
 29.12  estimates for an agency failing to file them.  By November 30, 
 29.13  the commissioner shall send the final budget format, 
 29.14  departmental earnings report, agency budget plans or requests 
 29.15  for the next biennium, and copies of the filed material to the 
 29.16  ways and means and finance committees, except that the 
 29.17  commissioner shall not be required to transmit information that 
 29.18  identifies executive branch budget decision items.  At this 
 29.19  time, a list of each employee's name, title, and salary must be 
 29.20  available to the legislature, either on paper or through 
 29.21  electronic retrieval. 
 29.22     Sec. 49.  [16A.1015] [BUDGET RESOLUTION.] 
 29.23     In each odd-numbered year, within 15 days after the last 
 29.24  available state general fund revenue and expenditure forecast 
 29.25  for the upcoming biennium prepared during the regular 
 29.26  legislative session, the legislature shall adopt a budget 
 29.27  resolution by concurrent resolution.  The budget resolution must 
 29.28  set the maximum limitation on expenditures and revenues for the 
 29.29  coming biennium for the general fund, and an amount to be set 
 29.30  aside as a budget reserve. 
 29.31     Sec. 50.  Minnesota Statutes 1996, section 16A.11, 
 29.32  subdivision 1, is amended to read: 
 29.33     Subdivision 1.  [WHEN.] The governor shall submit a 
 29.34  four-part budget to the legislature.  Parts one and two, the 
 29.35  budget message and detailed operating budget, must be submitted 
 29.36  by the fourth Tuesday in January in each odd-numbered year.  
 30.1   Part three, the detailed recommendations as to capital 
 30.2   expenditure, must be submitted as follows:  agency capital 
 30.3   budget requests by June 15 of each odd-numbered year; 
 30.4   preliminary governor's recommendations by September 1 of each 
 30.5   odd-numbered year;, and final governor's recommendations by 
 30.6   February 1 January 15 of each even-numbered year.  Part four, 
 30.7   the detailed recommendations as to information technology 
 30.8   expenditure, must be submitted at the same time the governor 
 30.9   submits the budget message to the legislature. 
 30.10     Sec. 51.  Minnesota Statutes 1996, section 16A.11, 
 30.11  subdivision 3c, is amended to read: 
 30.12     Subd. 3c.  [PART FOUR; DETAILED INFORMATION TECHNOLOGY 
 30.13  BUDGET.] The detailed information technology budget must include 
 30.14  recommendations for information technology projects to be funded 
 30.15  during the next biennium and planning estimates for an 
 30.16  additional two biennia.  It must be submitted with projects 
 30.17  ranked in order of importance among all projects as determined 
 30.18  by the governor. 
 30.19     Sec. 52.  Minnesota Statutes 1996, section 16A.1285, 
 30.20  subdivision 3, is amended to read: 
 30.21     Subd. 3.  [DUTIES OF THE COMMISSIONER OF FINANCE.] The 
 30.22  commissioner of finance shall classify, monitor, analyze, and 
 30.23  report all departmental earnings that fall within the definition 
 30.24  established in subdivision 1.  Specifically, the commissioner 
 30.25  shall: 
 30.26     (1) establish and maintain a classification system that 
 30.27  clearly defines and distinguishes categories and types of 
 30.28  departmental earnings and takes into account the purpose of the 
 30.29  various earnings types and the extent to which various earnings 
 30.30  types serve a public or private interest; 
 30.31     (2) prepare a biennial report that documents collection 
 30.32  costs, purposes, and yields of all departmental earnings, the 
 30.33  report to be submitted to the legislature on or before November 
 30.34  30 of each even-numbered year the fourth Tuesday in January in 
 30.35  each odd-numbered year and to include estimated data for the 
 30.36  year in which the report is prepared, actual data for the two 
 31.1   years immediately before, and estimates for the two years 
 31.2   immediately following; and 
 31.3      (3) prepare and maintain a detailed directory of all 
 31.4   departmental earnings. 
 31.5      Sec. 53.  Minnesota Statutes 1996, section 16A.129, 
 31.6   subdivision 3, is amended to read: 
 31.7      Subd. 3.  [CASH ADVANCES.] When the operations of any 
 31.8   nongeneral fund account would be impeded by projected cash 
 31.9   deficiencies resulting from delays in the receipt of grants, 
 31.10  dedicated income, or other similar receivables, and when the 
 31.11  deficiencies would be corrected within the budget period 
 31.12  involved, the commissioner of finance may use general fund cash 
 31.13  reserves to meet cash demands.  If funds are transferred from 
 31.14  the general fund to meet cash flow needs, the cash flow 
 31.15  transfers must be returned to the general fund as soon as 
 31.16  sufficient cash balances are available in the account to which 
 31.17  the transfer was made.  Any interest earned on general fund cash 
 31.18  flow transfers accrues to the general fund and not to the 
 31.19  accounts or funds to which the transfer was made.  The 
 31.20  commissioner may advance general fund cash reserves to 
 31.21  nongeneral fund accounts where the receipts from other 
 31.22  governmental units cannot be collected within the budget period. 
 31.23     Sec. 54.  Minnesota Statutes 1996, section 16A.15, 
 31.24  subdivision 3, is amended to read: 
 31.25     Subd. 3.  [ALLOTMENT AND ENCUMBRANCE.] (a) A payment may 
 31.26  not be made without prior obligation.  An obligation may not be 
 31.27  incurred against any fund, allotment, or appropriation unless 
 31.28  the commissioner has certified a sufficient unencumbered balance 
 31.29  or the accounting system shows sufficient allotment or 
 31.30  encumbrance balance in the fund, allotment, or appropriation to 
 31.31  meet it.  The commissioner shall determine when the accounting 
 31.32  system may be used to incur obligations without the 
 31.33  commissioner's certification of a sufficient unencumbered 
 31.34  balance.  An expenditure or obligation authorized or incurred in 
 31.35  violation of this chapter is invalid and ineligible for payment 
 31.36  until made valid.  A payment made in violation of this chapter 
 32.1   is illegal.  An employee authorizing or making the payment, or 
 32.2   taking part in it, and a person receiving any part of the 
 32.3   payment, are jointly and severally liable to the state for the 
 32.4   amount paid or received.  If an employee knowingly incurs an 
 32.5   obligation or authorizes or makes an expenditure in violation of 
 32.6   this chapter or takes part in the violation, the violation is 
 32.7   just cause for the employee's removal by the appointing 
 32.8   authority or by the governor if an appointing authority other 
 32.9   than the governor fails to do so.  In the latter case, the 
 32.10  governor shall give notice of the violation and an opportunity 
 32.11  to be heard on it to the employee and to the appointing 
 32.12  authority.  A claim presented against an appropriation without 
 32.13  prior allotment or encumbrance may be made valid on 
 32.14  investigation, review, and approval by the commissioner agency 
 32.15  head in accordance with the commissioner's policy, if the 
 32.16  services, materials, or supplies to be paid for were actually 
 32.17  furnished in good faith without collusion and without intent to 
 32.18  defraud.  The commissioner may then draw a warrant to pay the 
 32.19  claim just as properly allotted and encumbered claims are paid. 
 32.20     (b) The commissioner may approve payment for materials and 
 32.21  supplies in excess of the obligation amount when increases are 
 32.22  authorized by section 16B.07, subdivision 2. 
 32.23     (c) To minimize potential construction delay claims, an 
 32.24  agency with a project funded by a building appropriation may 
 32.25  allow a contractor to proceed with supplemental work within the 
 32.26  limits of the appropriation before money is encumbered.  Under 
 32.27  this circumstance, the agency may requisition funds and allow 
 32.28  contractors to expeditiously proceed with a construction 
 32.29  sequence.  While the contractor is proceeding, the agency shall 
 32.30  immediately act to encumber the required funds. 
 32.31     Sec. 55.  [16A.151] [LAWSUIT PROCEEDS.] 
 32.32     Money received by the state as a result of litigation or 
 32.33  settlements must be deposited in the general fund unless the 
 32.34  terms of the litigation or settlement require otherwise.  The 
 32.35  money remains in the fund in which it is deposited until 
 32.36  appropriated by law.  Except as limited by the terms of the 
 33.1   litigation or settlement, the legislature may appropriate the 
 33.2   money for any purpose, including a purpose defined in the 
 33.3   litigation or settlement. 
 33.4      Sec. 56.  Minnesota Statutes 1996, section 16A.642, 
 33.5   subdivision 1, is amended to read: 
 33.6      Subdivision 1.  [REPORTS.] The commissioner of finance 
 33.7   shall report to the chairs of the senate committee on finance 
 33.8   and the house of representatives committees on ways and means 
 33.9   and on capital investment by February 1 of each even-numbered 
 33.10  odd-numbered year on the following: 
 33.11     (1) all state building projects for which bonds have been 
 33.12  authorized and issued by a law enacted more than seven years 
 33.13  before February 1 of that even-numbered odd-numbered year and of 
 33.14  which 20 percent or less of a project's authorization has been 
 33.15  encumbered or otherwise obligated for the purpose stated in the 
 33.16  law authorizing the issue; and 
 33.17     (2) all state bonds authorized and issued for purposes 
 33.18  other than building projects reported under clause (1), by a law 
 33.19  enacted more than seven years before February 1 of that 
 33.20  even-numbered odd-numbered year, and the amount of any balance 
 33.21  that is unencumbered or otherwise not obligated for the purpose 
 33.22  stated in the law authorizing the issue. 
 33.23     The commissioner shall also report on bond authorizations 
 33.24  or bond proceed balances that may be canceled because projects 
 33.25  have been canceled, completed, or otherwise concluded, or 
 33.26  because the purposes for which the bonds were authorized or 
 33.27  issued have been canceled, completed, or otherwise concluded.  
 33.28  The bond authorizations or bond proceed balances that are 
 33.29  unencumbered or otherwise not obligated that are reported by the 
 33.30  commissioner under this subdivision are canceled, effective July 
 33.31  1 of the year of the report, unless specifically reauthorized by 
 33.32  act of the legislature. 
 33.33     Sec. 57.  Minnesota Statutes 1996, section 16B.05, 
 33.34  subdivision 2, is amended to read: 
 33.35     Subd. 2.  [FACSIMILE SIGNATURES AND ELECTRONIC APPROVALS.] 
 33.36  When authorized by the commissioner, facsimile signatures and, 
 34.1   electronic approvals, or digital signatures may be used by 
 34.2   personnel of the department of administration in accordance with 
 34.3   the commissioner's delegated authority and instructions,.  
 34.4   Copies of which shall must be filed with the commissioner of 
 34.5   finance, state treasurer, and the secretary of state.  A 
 34.6   facsimile signature or, electronic approval, or digital 
 34.7   signature, when used in accordance with the commissioner's 
 34.8   delegated authority and instructions, is as effective as an 
 34.9   original signature. 
 34.10     Sec. 58.  Minnesota Statutes 1996, section 16B.167, is 
 34.11  amended to read: 
 34.12     16B.167 [EMPLOYEE SKILLS INVENTORY.] 
 34.13     The commissioners of employee relations and administration 
 34.14  shall develop a list of skills that state agencies commonly seek 
 34.15  from professional or technical service contracts, in 
 34.16  consultation with exclusive representatives of state employees. 
 34.17     Before an agency may seek approval of a professional or 
 34.18  technical services contract valued in excess of $25,000, it must 
 34.19  certify to the commissioner that it has publicized the contract 
 34.20  by posting notice at appropriate worksites within agencies and 
 34.21  has made reasonable efforts to determine that no state employee, 
 34.22  including an employee outside the contracting agency, is able 
 34.23  and available to perform the services called for by the contract.
 34.24  When possible this posting must be done electronically. 
 34.25     For purposes of sections 16B.167 to 16B.175, "agency" 
 34.26  includes the Minnesota state colleges and universities. 
 34.27     Sec. 59.  Minnesota Statutes 1996, section 16B.24, 
 34.28  subdivision 5, is amended to read: 
 34.29     Subd. 5.  [RENTING OUT STATE PROPERTY.] (a)  [AUTHORITY.] 
 34.30  The commissioner may rent out state property, real or personal, 
 34.31  that is not needed for public use, if the rental is not 
 34.32  otherwise provided for or prohibited by law.  The property may 
 34.33  not be rented out for more than five years at a time without the 
 34.34  approval of the state executive council and may never be rented 
 34.35  out for more than 25 years.  A rental agreement may provide that 
 34.36  the state will reimburse a tenant for a portion of capital 
 35.1   improvements that the tenant makes to state real property if the 
 35.2   state does not permit the tenant to renew the lease at the end 
 35.3   of the rental agreement. 
 35.4      (b)  [RESTRICTIONS.] Paragraph (a) does not apply to state 
 35.5   trust fund lands, other state lands under the jurisdiction of 
 35.6   the department of natural resources, lands forfeited for 
 35.7   delinquent taxes, lands acquired under section 298.22, or lands 
 35.8   acquired under section 41.56 which are under the jurisdiction of 
 35.9   the department of agriculture.  
 35.10     (c)  [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
 35.11  Chapel, located within the boundaries of Fort Snelling State 
 35.12  Park, is available for use only on payment of a rental fee.  The 
 35.13  commissioner shall establish rental fees for both public and 
 35.14  private use.  The rental fee for private use by an organization 
 35.15  or individual must reflect the reasonable value of equivalent 
 35.16  rental space.  Rental fees collected under this section must be 
 35.17  deposited in the general fund.  
 35.18     (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
 35.19  shall establish rental rates for all living accommodations 
 35.20  provided by the state for its employees.  Money collected as 
 35.21  rent by state agencies pursuant to this paragraph must be 
 35.22  deposited in the state treasury and credited to the general fund.
 35.23     (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
 35.24  AGENCIES.] The commissioner may lease portions of the 
 35.25  state-owned buildings in the capitol complex, the capitol square 
 35.26  building, the health building, the Duluth government center, and 
 35.27  the building at 1246 University Avenue, St. Paul, Minnesota, to 
 35.28  state agencies and the court administrator on behalf of the 
 35.29  judicial branch of state government and charge rent on the basis 
 35.30  of space occupied.  Notwithstanding any law to the contrary, all 
 35.31  money collected as rent pursuant to the terms of this section 
 35.32  shall be deposited in the state treasury.  Money collected as 
 35.33  rent to recover the depreciation and bond interest costs of a 
 35.34  building funded from the state bond proceeds fund shall be 
 35.35  credited to the general fund.  Money collected as rent to 
 35.36  recover capital expenditures from capital asset preservation and 
 36.1   replacement appropriations and statewide building access 
 36.2   appropriations shall be credited to a segregated account in a 
 36.3   special revenue fund to be expended for asset preservation 
 36.4   projects as determined by the commissioner and appropriated by 
 36.5   law.  Money collected as rent to recover the depreciation cost 
 36.6   and interest costs of a building built with other state 
 36.7   dedicated funds shall be credited to the dedicated fund which 
 36.8   funded the original acquisition or construction.  All other 
 36.9   money received shall be credited to the general services 
 36.10  revolving fund. 
 36.11     Sec. 60.  [16B.275] [CAPITOL AREA CAFETERIAS.] 
 36.12     In entering into contracts for operation of cafeterias in 
 36.13  the capitol complex, the commissioner must ensure the department 
 36.14  does not receive revenues in excess of those needed to operate 
 36.15  and maintain the cafeteria space.  
 36.16     Sec. 61.  Minnesota Statutes 1996, section 16B.35, is 
 36.17  amended by adding a subdivision to read: 
 36.18     Subd. 5.  [CONTRACTOR'S BOND NOT REQUIRED.] Sections 574.26 
 36.19  to 574.32 do not apply to this section. 
 36.20     Sec. 62.  Minnesota Statutes 1996, section 16B.42, 
 36.21  subdivision 1, is amended to read: 
 36.22     Subdivision 1.  [COMPOSITION.] The intergovernmental 
 36.23  information systems advisory council is composed of (1) two 
 36.24  members from each of the following groups:  counties outside of 
 36.25  the seven-county metropolitan area, cities of the second and 
 36.26  third class outside the metropolitan area, cities of the second 
 36.27  and third class within the metropolitan area, and cities of the 
 36.28  fourth class; (2) one member from each of the following groups:  
 36.29  the metropolitan council, an outstate regional body, counties 
 36.30  within the metropolitan area, cities of the first class, school 
 36.31  districts in the metropolitan area, school districts outside the 
 36.32  metropolitan area, and public libraries; (3) one member each 
 36.33  appointed by the state departments of children, families, and 
 36.34  learning, human services, revenue, and economic security, the 
 36.35  office of strategic and long-range planning, and the legislative 
 36.36  auditor; (4) one member from the office of the state auditor, 
 37.1   appointed by the auditor; (5) the assistant commissioner of 
 37.2   administration for the information policy office; (6) one member 
 37.3   appointed by each of the following organizations:  league of 
 37.4   Minnesota cities, association of Minnesota counties, Minnesota 
 37.5   association of township officers, and Minnesota association of 
 37.6   school administrators; and (7) one member of the house of 
 37.7   representatives appointed by the speaker and one member of the 
 37.8   senate appointed by the subcommittee on committees of the 
 37.9   committee on rules and administration.  The legislative members 
 37.10  appointed under clause (7) are nonvoting members.  The 
 37.11  commissioner of administration shall appoint members under 
 37.12  clauses (1) and (2).  The terms, compensation, and removal of 
 37.13  the appointed members of the advisory council are as provided in 
 37.14  section 15.059, but the council does not expire until June 30, 
 37.15  1997 2001. 
 37.16     Sec. 63.  Minnesota Statutes 1996, section 16B.467, is 
 37.17  amended to read: 
 37.18     16B.467 [ELECTRONIC PERMITTING AND LICENSING CONDUCT OF 
 37.19  STATE BUSINESS.] 
 37.20     The commissioner of administration shall develop and 
 37.21  implement a system under which people seeking state business can 
 37.22  be conducted and permits or licenses that can be issued 
 37.23  immediately upon payment of a fee can obtain these permits and 
 37.24  licenses obtained through electronic access to communication 
 37.25  with the appropriate state agencies. 
 37.26     Sec. 64.  [16B.665] [BOARD OF APPEALS.] 
 37.27     A board of appeals must be appointed in each jurisdiction 
 37.28  enforcing the state building code.  The board must include 
 37.29  members with experience in building construction and one public 
 37.30  member who is not associated with building construction or 
 37.31  inspection.  The board must be appointed by the governing body 
 37.32  of the municipality enforcing the code and may not include 
 37.33  employees or elected officials of the municipality.  The 
 37.34  commissioner shall appoint a board of appeals for review of 
 37.35  decisions in areas where the state building official enforces 
 37.36  the code as a municipality. 
 38.1      Each board of appeals has authority to review and issue 
 38.2   decisions regarding application and interpretation of the code 
 38.3   by building officials in the municipality.  The Board of Appeals 
 38.4   cannot waive requirements of the code.  The decision of the 
 38.5   board of appeals is the final decision of the municipality and 
 38.6   shall be submitted to the state building official for review 
 38.7   with 15 days.  The final decision of the municipality may be 
 38.8   appealed pursuant to section 16B.67. 
 38.9      Sec. 65.  Minnesota Statutes 1996, section 16B.70, 
 38.10  subdivision 2, is amended to read: 
 38.11     Subd. 2.  [COLLECTION AND REPORTS.] All permit surcharges 
 38.12  must be collected by each municipality and a portion of them 
 38.13  remitted to the state.  Each municipality having a population 
 38.14  greater than 20,000 people shall prepare and submit to the 
 38.15  commissioner once a month a report of fees and surcharges on 
 38.16  fees collected during the previous month but shall retain the 
 38.17  greater of two percent or that amount collected up to $25 to 
 38.18  apply against the administrative expenses the municipality 
 38.19  incurs in collecting the surcharges.  All other municipalities 
 38.20  shall submit the report and surcharges on fees once a quarter 
 38.21  but shall retain the greater of four percent or that amount 
 38.22  collected up to $25 to apply against the administrative expenses 
 38.23  the municipalities incur in collecting the surcharges.  The 
 38.24  report, which must be in a form prescribed by the commissioner, 
 38.25  must be submitted together with a remittance covering the 
 38.26  surcharges collected by the 15th day following the month or 
 38.27  quarter in which the surcharges are collected.  All money 
 38.28  collected by the commissioner through surcharges and other fees 
 38.29  prescribed by sections 16B.59 to 16B.75, which are payable to 
 38.30  the state, must be paid shall be deposited in the state 
 38.31  government special revenue fund and is appropriated to the 
 38.32  commissioner who shall deposit them in the state treasury for 
 38.33  credit to a special revenue fund for the purpose of 
 38.34  administering and enforcing the state building code under 
 38.35  sections 16B.59 to 16B.75. 
 38.36     Sec. 66.  [43A.046] [STAFF REDUCTIONS.] 
 39.1      In order to maximize delivery of services to the public, if 
 39.2   layoffs of state employees are necessary, each agency with more 
 39.3   than 50 full-time equivalent employees must reduce at least the 
 39.4   same percentage of management and supervisory personnel as line 
 39.5   and support personnel. 
 39.6      Sec. 67.  [43A.047] [CONTRACTED SERVICES.] 
 39.7      (a) Executive agencies, including the Minnesota state 
 39.8   colleges and universities system, must demonstrate that they 
 39.9   cannot use available staff before hiring outside consultants or 
 39.10  services.  If use of consultants is necessary, agencies are 
 39.11  encouraged to negotiate contracts that will involve permanent 
 39.12  staff, so as to upgrade and maximize training of state employees.
 39.13     (b) If agencies reduce operating budgets, agencies must 
 39.14  give priority to reducing spending on professional and technical 
 39.15  service contracts before laying off permanent employees. 
 39.16     (c) Agencies must report to senate finance and house ways 
 39.17  and means committees by August 1 each year on implementation of 
 39.18  this section during the previous fiscal year.  The reports must 
 39.19  include amounts spent on professional and technical service 
 39.20  contracts during the previous fiscal year. 
 39.21     Sec. 68.  Minnesota Statutes 1996, section 43A.17, 
 39.22  subdivision 4, is amended to read: 
 39.23     Subd. 4.  [MEDICAL SPECIALISTS.] The commissioner may 
 39.24  without regard to subdivision 1 establish special salary rates 
 39.25  and plans of compensation designed to attract and retain 
 39.26  exceptionally qualified doctors of medicine and information 
 39.27  systems staff.  These rates and plans shall be included in the 
 39.28  commissioner's plan.  In establishing salary rates and 
 39.29  eligibility for nomination for payment at special rates for 
 39.30  doctors, the commissioner shall consider the standards of 
 39.31  eligibility established by national medical specialty boards 
 39.32  where appropriate.  The incumbents doctors assigned to these 
 39.33  special ranges shall be excluded from the collective bargaining 
 39.34  process. 
 39.35     Sec. 69.  Minnesota Statutes 1996, section 43A.38, 
 39.36  subdivision 4, is amended to read: 
 40.1      Subd. 4.  [USE OF STATE PROPERTY.] (a) An employee shall 
 40.2   not use or allow the use of state time, supplies or state-owned 
 40.3   or leased property and equipment for the employee's private 
 40.4   interests or any other use not in the interest of the state, 
 40.5   except as provided by law. 
 40.6      (b) An employee may use state time, property, or equipment 
 40.7   to communicate electronically with other persons including, but 
 40.8   not limited to, elected officials, the employer, or an exclusive 
 40.9   bargaining representative under chapter 179A, provided this use, 
 40.10  including the value of the time spent, results in no incremental 
 40.11  cost to the state or results in an incremental cost that is so 
 40.12  small as to make accounting for it unreasonable or 
 40.13  administratively impracticable. 
 40.14     Sec. 70.  Minnesota Statutes 1996, section 116P.05, 
 40.15  subdivision 1, is amended to read: 
 40.16     Subdivision 1.  [MEMBERSHIP.] (a) A legislative commission 
 40.17  on Minnesota resources of 16 22 members is created, consisting 
 40.18  of the chairs of the house and senate committees on environment 
 40.19  and natural resources or designees appointed for the terms of 
 40.20  the chairs, the chairs of the house and senate committees on 
 40.21  environment and natural resources finance or designees appointed 
 40.22  for the terms of the chairs, the chairs of the house ways and 
 40.23  means and senate finance committees or designees appointed for 
 40.24  the terms of the chairs, six seven members of the senate 
 40.25  appointed by the subcommittee on committees of the committee on 
 40.26  rules and administration, and six seven members of the house 
 40.27  appointed by the speaker.  
 40.28     At least two four members from the senate and two four 
 40.29  members from the house must be from the minority caucus.  
 40.30  Members are entitled to reimbursement for per diem expenses plus 
 40.31  travel expenses incurred in the services of the commission.  
 40.32     (b) Members shall appoint a chair who shall preside and 
 40.33  convene meetings as often as necessary to conduct duties 
 40.34  prescribed by this chapter. 
 40.35     (c) Members shall serve on the commission until their 
 40.36  successors are appointed. 
 41.1      (d) Vacancies occurring on the commission shall not affect 
 41.2   the authority of the remaining members of the commission to 
 41.3   carry out their duties, and vacancies shall be filled in the 
 41.4   same manner under paragraph (a). 
 41.5      Sec. 71.  Minnesota Statutes 1996, section 138.31, is 
 41.6   amended by adding a subdivision to read: 
 41.7      Subd. 14.  "Qualified professional archaeologist" means an 
 41.8   archaeologist who meets the United States Secretary of the 
 41.9   Interior's professional qualification standards in Code of 
 41.10  Federal Regulations, title 36, part 61, appendix A, or 
 41.11  subsequent revisions. 
 41.12     Sec. 72.  Minnesota Statutes 1996, section 138.35, is 
 41.13  amended to read: 
 41.14     138.35 [STATE ARCHAEOLOGIST.] 
 41.15     Subdivision 1.  [APPOINTMENT.] The state archaeologist 
 41.16  shall be a qualified professional archaeologist who meets the 
 41.17  United States Secretary of the Interior's professional 
 41.18  qualification standards in Code of Federal Regulations, title 
 41.19  36, part 61, appendix A.  The state archaeologist shall be paid 
 41.20  a salary in the range of salaries paid to comparable state 
 41.21  employees in the classified service.  The state archaeologist 
 41.22  may not be employed by the Minnesota historical society.  The 
 41.23  state archaeologist shall be appointed by the board executive 
 41.24  council of the Minnesota historical society in consultation with 
 41.25  the Indian affairs council for a four-year term. to perform the 
 41.26  duties in sections 138.31 to 138.42.  The position is in the 
 41.27  unclassified service in the executive branch and is subject to 
 41.28  chapter 43A but not chapter 179A.  The compensation and terms 
 41.29  and conditions of employment are as provided by section 43A.18, 
 41.30  subdivision 3.  The state archaeologist's salary shall be 
 41.31  established by the commissioner of employee relations within a 
 41.32  range established by the commissioner of employee relations.  
 41.33     Subd. 1a.  [ADMINISTRATIVE SUPPORT; STAFF.] The 
 41.34  commissioner of administration shall provide the state 
 41.35  archaeologist with necessary administrative services.  State 
 41.36  agencies shall provide the state archaeologist upon request with 
 42.1   advisory staff services on matters relating to the duties and 
 42.2   jurisdiction of the state archaeologist.  The state 
 42.3   archaeologist shall hire staff and maintain offices as necessary 
 42.4   to perform the duties in sections 138.31 to 138.42.  Staff shall 
 42.5   serve in the unclassified service and be governed by section 
 42.6   43A.18, subdivision 2. 
 42.7      Subd. 1b.  [CONTRACTS; VOLUNTEERS; GRANTS AND GIFTS.] The 
 42.8   state archaeologist may contract with the federal government, 
 42.9   local governmental units, other states, the university and other 
 42.10  educational institutions, and private persons or organizations 
 42.11  as necessary in the performance of the duties in sections 138.31 
 42.12  to 138.42.  Contracts made under this section for professional 
 42.13  services shall not be subject to chapter 16B, as it relates to 
 42.14  competitive bidding.  The state archaeologist may recruit, 
 42.15  train, and accept, without regard to personnel laws or rules, 
 42.16  the services of individuals as volunteers for or in aid of 
 42.17  performance of the state archaeologist's duties, and may provide 
 42.18  for the incidental expenses of volunteers, such as 
 42.19  transportation, lodging, and subsistence.  The state 
 42.20  archaeologist may apply for, receive, and expend grants and 
 42.21  gifts of money consistent with the powers and duties in sections 
 42.22  138.31 to 138.42.  Any money so received is appropriated for the 
 42.23  purpose for which it was granted.  
 42.24     Subd. 2.  [DUTIES OF STATE ARCHAEOLOGIST.] The duties of 
 42.25  the state archaeologist shall include the following: 
 42.26     (a) to sponsor, engage in, and direct fundamental research 
 42.27  into the archaeology of this state and to encourage and 
 42.28  coordinate archaeological research and investigation undertaken 
 42.29  within the state.; 
 42.30     (b) to cooperate with other agencies of the state which may 
 42.31  have authority in areas where state sites are located, or which 
 42.32  may have the responsibility for marking state sites, or 
 42.33  arranging for their being viewed by the public.; 
 42.34     (c) to protect to the extent possible and to encourage the 
 42.35  preservation of archaeological sites located on privately owned 
 42.36  property.; 
 43.1      (d) to retrieve and protect objects of archaeological 
 43.2   significance discovered by field archaeology on state sites or 
 43.3   discovered during the course of any public construction or 
 43.4   demolition work, and, to the extent possible, those discovered 
 43.5   during the course of any other construction or demolition work.; 
 43.6      (e) to obtain for the state other objects of archaeological 
 43.7   significance, and data relating thereto.; 
 43.8      (f) to cooperate with the historical society, the 
 43.9   university, and other custodians to preserve objects of 
 43.10  archaeological significance, together with the data relating 
 43.11  thereto.; 
 43.12     (g) to disseminate archaeological facts through the 
 43.13  publication of reports of archaeological research conducted 
 43.14  within the state.; 
 43.15     (h) to approve licensing of qualified persons professional 
 43.16  archaeologists to engage in field archaeology on state sites, as 
 43.17  provided in section 138.36,; and 
 43.18     (i) to otherwise carry out and enforce sections 138.31 to 
 43.19  138.42. 
 43.20     Subd. 3.  [EMPLOYMENT OF PERSONNEL.] The state 
 43.21  archaeologist may employ personnel to assist in carrying out the 
 43.22  state archaeologist's duties and may spend state appropriations 
 43.23  to compensate such personnel. 
 43.24     Sec. 73.  Minnesota Statutes 1996, section 176.611, is 
 43.25  amended by adding a subdivision to read: 
 43.26     Subd. 2a.  [SETTLEMENT AND CONTINGENCY RESERVE ACCOUNT.] To 
 43.27  reduce long-term costs, minimize impairment to agency operations 
 43.28  and budgets, and distribute risk of one-time catastrophic 
 43.29  claims, the commissioner of employee relations shall maintain a 
 43.30  separate account within the state compensation revolving fund.  
 43.31  The account shall be used to pay for lump-sum or annuitized 
 43.32  settlements, structured claim settlements, and one-time large, 
 43.33  legal, catastrophic medical, indemnity, or other irregular claim 
 43.34  costs that might otherwise pose a significant burden for 
 43.35  agencies.  The commissioner of employee relations, with the 
 43.36  approval of the commissioner of finance, may establish criteria 
 44.1   and procedures for payment from the account on an agency's 
 44.2   behalf.  The commissioner of employee relations may assess 
 44.3   agencies on a reimbursement or premium basis from time-to-time 
 44.4   to ensure adequate account reserves.  The account consists of 
 44.5   appropriations from the general fund, receipts from billings to 
 44.6   agencies, and credited investment gains or losses attributable 
 44.7   to balances in the account.  The state board of investment shall 
 44.8   invest the assets of the account according to section 11A.24. 
 44.9      Sec. 74.  Minnesota Statutes 1996, section 177.24, 
 44.10  subdivision 1, is amended to read: 
 44.11     Subdivision 1.  [AMOUNT.] (a) For purposes of this 
 44.12  subdivision, the terms defined in this paragraph have the 
 44.13  meanings given them.  
 44.14     (1) "Large employer" means an enterprise whose annual gross 
 44.15  volume of sales made or business done is not less than $362,500 
 44.16  $500,000 (exclusive of excise taxes at the retail level that are 
 44.17  separately stated) and covered by the Minnesota fair labor 
 44.18  standards act, sections 177.21 to 177.35. 
 44.19     (2) "Small employer" means an enterprise whose annual gross 
 44.20  volume of sales made or business done is less than $362,500 
 44.21  $500,000 (exclusive of excise taxes at the retail level that are 
 44.22  separately stated) and covered by the Minnesota fair labor 
 44.23  standards act, sections 177.21 to 177.35.  
 44.24     (b) Except as otherwise provided in sections 177.21 to 
 44.25  177.35, every large employer must pay each employee wages at a 
 44.26  rate of at least $4.25 $5.40 an hour beginning September 1, 1997.
 44.27  Every small employer must pay each employee at a rate of at 
 44.28  least $4 $5.15 an hour beginning September 1, 1997. 
 44.29     (c) A large employer must pay each employee at a rate of at 
 44.30  least the minimum wage set by this section or federal law 
 44.31  without the reduction for training wage or full-time student 
 44.32  status allowed under federal law for the initial employment of 
 44.33  employees under age 20.  
 44.34     Sec. 75.  Minnesota Statutes 1996, section 179A.03, 
 44.35  subdivision 15, is amended to read: 
 44.36     Subd. 15.  [PUBLIC EMPLOYER.] "Public employer" or 
 45.1   "employer" means:  
 45.2      (a) the state of Minnesota for employees of the state not 
 45.3   otherwise provided for in this subdivision or section 179A.10 
 45.4   for executive branch employees; 
 45.5      (b) the board of regents of the University of Minnesota for 
 45.6   its employees; and 
 45.7      (c) notwithstanding any other law to the contrary, the 
 45.8   governing body of a political subdivision or its agency or 
 45.9   instrumentality which has final budgetary approval authority for 
 45.10  its employees.  However, the views of elected appointing 
 45.11  authorities who have standing to initiate interest arbitration, 
 45.12  and who are responsible for the selection, direction, 
 45.13  discipline, and discharge of individual employees shall be 
 45.14  considered by the employer in the course of the discharge of 
 45.15  rights and duties under sections 179A.01 to 179A.25; and 
 45.16     (d) the legislative coordinating commission for legislative 
 45.17  employees.  
 45.18     When two or more units of government subject to sections 
 45.19  179A.01 to 179A.25 undertake a project or form a new agency 
 45.20  under law authorizing common or joint action, the employer is 
 45.21  the governing person or board of the created agency.  The 
 45.22  governing official or body of the cooperating governmental units 
 45.23  shall be bound by an agreement entered into by the created 
 45.24  agency according to sections 179A.01 to 179A.25.  
 45.25     "Public employer" or "employer" does not include a 
 45.26  "charitable hospital" as defined in section 179.35, subdivision 
 45.27  2.  
 45.28     Nothing in this subdivision diminishes the authority 
 45.29  granted pursuant to law to an appointing authority with respect 
 45.30  to the selection, direction, discipline, or discharge of an 
 45.31  individual employee if this action is consistent with general 
 45.32  procedures and standards relating to selection, direction, 
 45.33  discipline, or discharge which are the subject of an agreement 
 45.34  entered into under sections 179A.01 to 179A.25.  
 45.35     Sec. 76.  Minnesota Statutes 1996, section 179A.10, 
 45.36  subdivision 1, is amended to read: 
 46.1      Subdivision 1.  [EXCLUSIONS.] The commissioner of employee 
 46.2   relations shall meet and negotiate with the exclusive 
 46.3   representative of each of the units specified in this section, 
 46.4   except as provided in section 43A.06, subdivision 1, paragraph 
 46.5   (c).  The units provided in this section are the only 
 46.6   appropriate units for executive branch state employees.  The 
 46.7   following employees shall be excluded from any appropriate unit: 
 46.8      (1) the positions and classes of positions in the 
 46.9   classified and unclassified services defined as managerial by 
 46.10  the commissioner of employee relations in accordance with 
 46.11  section 43A.18, subdivision 3, and so designated in the official 
 46.12  state compensation schedules; 
 46.13     (2) unclassified positions in the state university system 
 46.14  and the community college system defined as managerial by their 
 46.15  respective boards; 
 46.16     (3) positions of physician employees compensated under 
 46.17  section 43A.17, subdivision 4; 
 46.18     (4) positions of all unclassified employees appointed by a 
 46.19  constitutional officer; 
 46.20     (5) positions in the bureau; 
 46.21     (6) (5) positions of employees whose classification is 
 46.22  pilot or chief pilot; 
 46.23     (7) (6) administrative law judge and compensation judge 
 46.24  positions in the office of administrative hearings; and 
 46.25     (8) (7) positions of all confidential employees.  
 46.26     The governor may upon the unanimous written request of 
 46.27  exclusive representatives of units and the commissioner direct 
 46.28  that negotiations be conducted for one or more units in a common 
 46.29  proceeding or that supplemental negotiations be conducted for 
 46.30  portions of a unit or units defined on the basis of appointing 
 46.31  authority or geography. 
 46.32     Sec. 77.  [197.79] [VETERANS' BONUS PROGRAM.] 
 46.33     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 46.34  section, the following terms have the meanings given them. 
 46.35     (a) "Applicant" means a veteran or a veteran's guardian, or 
 46.36  a beneficiary or a beneficiary's guardian, who has filed an 
 47.1   application with the commissioner for a bonus under this section.
 47.2      (b) "Application" means a request for a bonus payment by a 
 47.3   veteran, a veteran's beneficiary, or a veteran's guardian 
 47.4   through submission of written information on a form designed by 
 47.5   the commissioner for this purpose. 
 47.6      (c) "Beneficiary" means in relation to a deceased veteran 
 47.7   and in the order named; 
 47.8      (1) the surviving spouse, if not remarried; 
 47.9      (2) the children of the veteran, if there is no surviving 
 47.10  spouse or the surviving spouse has remarried; 
 47.11     (3) the veterans surviving mother; 
 47.12     (4) the veteran's surviving father; or 
 47.13     (5) a surviving person standing in loco parentis. 
 47.14     (d) "Commissioner" means the commissioner of the department 
 47.15  of veterans affairs. 
 47.16     (e) "Department" means the department of veterans affairs. 
 47.17     (f) "Eligibility period for the bonus" means the period 
 47.18  from August 2, 1990, to July 31, 1991. 
 47.19     (g) "Guardian" means the legally appointed representative 
 47.20  of a minor or incompetent, the chief officer of a hospital or 
 47.21  institution in which the minor or incompetent is placed if the 
 47.22  officer is authorized to accept money for the benefit of the 
 47.23  minor or incompetent, the person determined by the commissioner 
 47.24  to be the person who is legally charged with the responsibility 
 47.25  for the care of the minor or incompetent, or the person 
 47.26  determined by the commissioner to be the person who has assumed 
 47.27  the responsibility for the care of the minor or incompetent. 
 47.28     (h) "Honorable service" means honorable service in the 
 47.29  United States armed forces, as evidenced by; 
 47.30     (1) an honorable discharge; 
 47.31     (2) a general discharge under honorable conditions; 
 47.32     (3) in the case of an officer, a certificate of honorable 
 47.33  service; or 
 47.34     (4) in the case of an applicant who is currently serving in 
 47.35  active duty in the United States armed forces, a certificate 
 47.36  from an appropriate service authority that the applicant's 
 48.1   service to date has been honorable. 
 48.2      (i) "Resident veteran" means a veteran who served in active 
 48.3   duty in the United States armed forces at any time during the 
 48.4   eligibility period for the bonus, and who also: 
 48.5      (1) has been separated or discharged from the United States 
 48.6   armed forces, and whose home of record at the time of entry into 
 48.7   active duty in the United States armed forces, as indicated on 
 48.8   the person's form DD-214, is the state of Minnesota; or 
 48.9      (2) is currently serving in the United States armed forces, 
 48.10  and has a certificate from an appropriate service authority 
 48.11  stating that the person:  (i) served in active duty in the 
 48.12  United States armed forces at any time during the eligibility 
 48.13  period for the bonus; and (ii) had Minnesota as the home of 
 48.14  record at the time of entry into active duty in the United 
 48.15  States armed forces. 
 48.16     (j) "Service connected" means caused by an injury or 
 48.17  disease incurred or aggravated while on active duty, as 
 48.18  determined by the United States department of veterans affairs. 
 48.19     (k) "Veteran" has the meaning given in section 197.447, and 
 48.20  also includes any person who is providing honorable service on 
 48.21  active duty in the United States armed forces and has not been 
 48.22  separated or discharged.  
 48.23     "Veteran" includes any member of a reserve component of the 
 48.24  armed forces of the United States, including the national guard, 
 48.25  who was ordered to active duty under United States Code, title 
 48.26  10, section 673(b), during the eligibility period for the bonus 
 48.27  and who was deployed to a duty station outside the state of 
 48.28  Minnesota, as verified by the appropriate service authority. An 
 48.29  applicant's DD-214 form showing award of the Southwest Asia 
 48.30  service medal during the eligibility period for the bonus will 
 48.31  suffice as verification. "Veteran" does not include a member of 
 48.32  the national guard or the reserve components of the United 
 48.33  States armed forces ordered to active duty for the sole purpose 
 48.34  of training. 
 48.35     Subd. 2.  [BONUS AMOUNT.] (a) For a resident veteran who 
 48.36  provided honorable service in the United States armed forces at 
 49.1   any time during the eligibility period for the bonus, the bonus 
 49.2   amount is; 
 49.3      (1) $300, if the veteran did not become eligible for the 
 49.4   Southwest Asia service medal during the eligibility period for 
 49.5   the bonus; 
 49.6      (2) $600, if the veteran became eligible for the Southwest 
 49.7   Asia service medal during the eligibility period for the bonus; 
 49.8   or 
 49.9      (3) $2,000, if the veteran became eligible for the 
 49.10  Southwest Asia service medal during the eligibility period for 
 49.11  the bonus, and died during that time period as a direct result 
 49.12  of a service connected injury, disease, or condition. 
 49.13     (b) In the case of a deceased veteran, the bonus must be 
 49.14  paid to the veteran's beneficiary. 
 49.15     (c) No payment may be made to a veteran or beneficiary who 
 49.16  has received a similar bonus payment from another state. 
 49.17     Subd. 3.  [APPLICATION PROCESS.] A veteran, or the 
 49.18  beneficiary of a veteran, entitled to a bonus may make 
 49.19  application for a bonus to the department on a form prescribed 
 49.20  by the commissioner and verified by the applicant.  If the 
 49.21  veteran is incompetent or the veteran's beneficiary is a minor 
 49.22  or incompetent, the application must be made by the person's 
 49.23  guardian.  An application must be accompanied by evidence of 
 49.24  residency, honorable service, active duty service during the 
 49.25  eligibility period for the bonus, and any other information the 
 49.26  commissioner requires.  The applicant must indicate on the 
 49.27  application form the bonus amount for which the applicant 
 49.28  expects to be eligible.  
 49.29     If the information provided in the application is 
 49.30  incomplete, the department must notify the applicant in writing 
 49.31  of that fact and must identify the items of information needed 
 49.32  to make a determination.  After notifying an applicant that the 
 49.33  person's application is incomplete, the department shall hold 
 49.34  the application open while awaiting further information from the 
 49.35  applicant, and the applicant may submit that information without 
 49.36  filing an appeal and request for review. 
 50.1      Subd. 4.  [BONUS DETERMINATION, APPEAL PROCESS, AND 
 50.2   PAYMENT.] (a) Except as provided in paragraphs (b) to (d), the 
 50.3   commissioner may not make a bonus payment to any applicant. 
 50.4      (b) Upon submission of proof to the department that an 
 50.5   applicant is entitled to payment under this section, the 
 50.6   department shall determine the amount of the bonus for which the 
 50.7   applicant is eligible.  If the department's determination of the 
 50.8   bonus amount is in agreement with, or is greater than, the 
 50.9   amount requested by the applicant in the application, the 
 50.10  commissioner shall pay to the applicant the bonus amount, as 
 50.11  determined by the department. 
 50.12     (c) If the department determines that the bonus amount for 
 50.13  an applicant is less than the amount requested in the 
 50.14  application, the department shall notify the applicant in 
 50.15  writing of its determination, and include with that notification 
 50.16  a form that the applicant may use to accept the department's 
 50.17  determination and thereby waive the right to review of that 
 50.18  determination.  A filing by the applicant of the acceptance and 
 50.19  waiver form with the department constitutes a waiver by the 
 50.20  applicant of the right to review.  Upon receipt of such 
 50.21  acceptance and waiver from the applicant, the department shall 
 50.22  pay to the applicant the bonus amount, as determined by the 
 50.23  department.  Unless an appeal is filed with the commissioner by 
 50.24  an applicant in accordance with paragraph (d), all orders, 
 50.25  decisions, and acts of the department with reference to the 
 50.26  claim of the applicant are final and conclusive upon the 
 50.27  applicant. 
 50.28     (d) Upon notification that the department's determination 
 50.29  of the bonus amount is less than the bonus amount requested by 
 50.30  the applicant in the application, the applicant may appeal the 
 50.31  department's determination and request a review by the 
 50.32  commissioner.  The appeal and request for review must be made in 
 50.33  writing within 60 days of the department's mailing of its 
 50.34  determination.  Following receipt by the department of an 
 50.35  applicant's appeal and request for review by the commissioner, 
 50.36  no payment shall be made by the department to the applicant 
 51.1   until the review has been completed.  For such review, the 
 51.2   applicant may submit additional information to supplement the 
 51.3   information provided in the application, and may request that 
 51.4   the review be conducted either:  (1) through written 
 51.5   correspondence; or (2) in person with the commissioner.  The 
 51.6   commissioner shall act upon an appeal and request for review 
 51.7   within seven working days of its receipt by the department.  
 51.8   Following review by the commissioner of the application and any 
 51.9   additional information submitted or presented by the applicant, 
 51.10  the commissioner's determination is final.  Any expenses 
 51.11  incurred by the applicant as the result of the applicant's 
 51.12  appeal and request for review are the obligation of the 
 51.13  applicant. 
 51.14     Subd. 5.  [NOTICES.] Notices and correspondence to an 
 51.15  applicant must be directed to the applicant by mail at the 
 51.16  address listed in the application.  Notices and correspondence 
 51.17  to the commissioner must be addressed to the commissioner's 
 51.18  office in St. Paul. 
 51.19     Subd. 6.  [POWERS AND DUTIES OF THE COMMISSIONER.] (a) The 
 51.20  commissioner shall administer this section. 
 51.21     (b) The commissioner shall determine who is the beneficiary 
 51.22  of a deceased veteran and determine who is the person who has 
 51.23  assumed the responsibility for the care of any minor or 
 51.24  incompetent. 
 51.25     (c) The commissioner may employ persons and may incur other 
 51.26  expenses necessary to administer this section. 
 51.27     Subd. 7.  [TAX EXEMPT GIFTS.] The bonus payments provided 
 51.28  for by this section are gifts or gratuities given as a token of 
 51.29  appreciation to eligible veterans and are not compensation for 
 51.30  services rendered.  The payments are exempt from taxation. 
 51.31     Subd. 8.  [NONASSIGNABLE; EXCEPTED FROM PROCESS.] A claim 
 51.32  for payment under this section is not assignable or subject to 
 51.33  garnishment, attachment, or levy of execution. 
 51.34     Subd. 9.  [PENALTIES.] A person who knowingly makes a false 
 51.35  statement relating to a material fact in support of a claim for 
 51.36  a bonus under this section is guilty of a gross misdemeanor. 
 52.1      Subd. 10.  [DEADLINE FOR APPLICATIONS.] The application 
 52.2   period for the bonus program established in this section shall 
 52.3   be November 1, 1997, to June 30, 1999.  The department may not 
 52.4   receive or accept new applications after June 30, 1999. 
 52.5      Sec. 78.  [240A.12] [YOUTH SPORTS PROGRAMS; CRITERIA.] 
 52.6      The Minnesota amateur sports commission shall develop a 
 52.7   plan to promote recreational programs for youth.  The proposals 
 52.8   must be for programs for which there is a demonstrated shortage 
 52.9   of access, based on needs of youth.  The plan must be based on 
 52.10  the criteria in this section. 
 52.11     (a) The programs must be intended primarily for use for 
 52.12  youth sports in the entire community and not for school athletic 
 52.13  functions. 
 52.14     (b) Programs must emphasize access for low-income youth and 
 52.15  for other youth who would not otherwise have access to the 
 52.16  programs.  
 52.17     (c) Proposals must contain a plan to ensure equitable use 
 52.18  for youth of each gender. 
 52.19     (d) To the extent possible, program grants must be 
 52.20  dispersed equitably, must be located to maximize potential for 
 52.21  full utilization, and must accommodate noncompetitive family and 
 52.22  community use for all ages in addition to use for competitive 
 52.23  youth sports. 
 52.24     (e) To the extent possible, 50 percent of all grants must 
 52.25  be awarded to communities in greater Minnesota. 
 52.26     Sec. 79.  Minnesota Statutes 1996, section 327.33, 
 52.27  subdivision 2, is amended to read: 
 52.28     Subd. 2.  [FEES.] The commissioner shall by rule establish 
 52.29  reasonable fees for seals, installation seals and inspections 
 52.30  which are sufficient to cover all costs incurred in the 
 52.31  administration of sections 327.31 to 327.35.  The commissioner 
 52.32  shall also establish by rule a monitoring inspection fee in an 
 52.33  amount that will comply with the secretary's fee distribution 
 52.34  program.  This monitoring inspection fee shall be an amount paid 
 52.35  by the manufacturer for each manufactured home produced in 
 52.36  Minnesota.  The monitoring inspection fee shall be paid by the 
 53.1   manufacturer to the secretary.  The rules of the fee 
 53.2   distribution program require the secretary to distribute the 
 53.3   fees collected from all manufactured home manufacturers among 
 53.4   states approved and conditionally approved based on the number 
 53.5   of new manufactured homes whose first location after leaving the 
 53.6   manufacturer is on the premises of a distributor, dealer or 
 53.7   purchaser in that state.  All fees received money collected by 
 53.8   the commissioner shall be deposited in the state treasury and 
 53.9   credited to the general fund through fees prescribed by sections 
 53.10  327.31 to 327.36 shall be deposited in the state government 
 53.11  special revenue fund and is appropriated to the commissioner for 
 53.12  the purpose of administering and enforcing the manufactured home 
 53.13  building code under sections 327.31 to 327.36. 
 53.14     Sec. 80.  Minnesota Statutes 1996, section 327B.04, 
 53.15  subdivision 7, is amended to read: 
 53.16     Subd. 7.  [FEES; LICENSES; WHEN GRANTED.] Each application 
 53.17  for a license or license renewal must be accompanied by a fee in 
 53.18  an amount established by the commissioner by rule pursuant to 
 53.19  section 327B.10, which shall be paid into the state treasury and 
 53.20  credited to the general fund.  The fees shall be set in an 
 53.21  amount which over the fiscal biennium will produce revenues 
 53.22  approximately equal to the expenses which the commissioner 
 53.23  expects to incur during that fiscal biennium while administering 
 53.24  and enforcing sections 327B.01 to 327B.12.  All money collected 
 53.25  by the commissioner through fees prescribed in sections 327B.01 
 53.26  to 327B.12 shall be deposited in the state government special 
 53.27  revenue fund and is appropriated to the commissioner for 
 53.28  purposes of administering and enforcing the provisions of this 
 53.29  chapter.  The commissioner shall grant or deny a license 
 53.30  application or a renewal application within 60 days of its 
 53.31  filing.  If the license is granted, the commissioner shall 
 53.32  license the applicant as a dealer or manufacturer for the 
 53.33  remainder of the calendar year.  Upon application by the 
 53.34  licensee, the commissioner shall renew the license for a two 
 53.35  year period, if:  
 53.36     (a) the renewal application satisfies the requirements of 
 54.1   subdivisions 3 and 4; 
 54.2      (b) the renewal applicant has made all listings, 
 54.3   registrations, notices and reports required by the commissioner 
 54.4   during the preceding year; and 
 54.5      (c) the renewal applicant has paid all fees owed pursuant 
 54.6   to sections 327B.01 to 327B.12 and all taxes, arrearages, and 
 54.7   penalties owed to the state. 
 54.8      Sec. 81.  Minnesota Statutes 1996, section 349.163, 
 54.9   subdivision 4, is amended to read: 
 54.10     Subd. 4.  [INSPECTION OF MANUFACTURERS.] Employees of the 
 54.11  board and the division of gambling enforcement may inspect the 
 54.12  books, records, inventory, and business premises of a licensed 
 54.13  manufacturer without notice during the normal business hours of 
 54.14  the manufacturer.  The board may charge a manufacturer for the 
 54.15  actual cost of conducting inspections of the manufacturer's 
 54.16  facilities, where the amount charged to the manufacturer for 
 54.17  such inspections in any year does not exceed $7,500.  The board 
 54.18  shall deposit in a separate account in the state treasury all 
 54.19  money received as reimbursement for the costs of inspections.  
 54.20  Until July 1, 1999, money in the account is appropriated to the 
 54.21  board to pay the costs of the inspections. 
 54.22     Sec. 82.  Minnesota Statutes 1996, section 403.08, is 
 54.23  amended by adding a subdivision to read: 
 54.24     Subd. 7.  [CELLULAR AND OTHER NONWIRE PROVIDERS.] (a) Each 
 54.25  cellular and other wireless access service provider shall 
 54.26  cooperate in planning and implementing integration with enhanced 
 54.27  911 systems operating in their service territories to meet 
 54.28  federal communications commission enhanced 911 standards.  By 
 54.29  August 1, 1997, each 911 emergency telephone service provider 
 54.30  operating enhanced 911 systems, in cooperation with each 
 54.31  involved cellular or other wireless access service provider, 
 54.32  shall develop and provide to the department of administration 
 54.33  good-faith estimates of installation and recurring expenses to 
 54.34  integrate cellular 911 service into the enhanced 911 networks to 
 54.35  meet federal communications commission phase one wireless 
 54.36  enhanced 911 standards.  The department of administration shall 
 55.1   coordinate with counties and affected public safety agency 
 55.2   representatives in developing a statewide design and plan for 
 55.3   implementation.  
 55.4      (b) Planning shall be completed by October 1, 1997, for the 
 55.5   metropolitan area as defined in section 493.121, subdivision 2, 
 55.6   and shall be completed by December 1, 1997, for the areas 
 55.7   outside of the metropolitan area.  
 55.8      (c) Planning considerations must include cost, degree of 
 55.9   integration into existing 911 systems, the retention of existing 
 55.10  911 infrastructure, and the implementation of phase 2 of the 
 55.11  federal communications commission wireless enhanced 911 
 55.12  standards.  
 55.13     (d) Counties shall incorporate the statewide design when 
 55.14  modifying county 911 plans to provide for integrating wireless 
 55.15  911 service into existing county 911 systems.  The department of 
 55.16  administration shall contract with the involved wireless service 
 55.17  providers and 911 service providers to integrate cellular and 
 55.18  other wireless services into existing 911 systems where feasible.
 55.19     Sec. 83.  Minnesota Statutes 1996, section 403.11, 
 55.20  subdivision 2, is amended to read: 
 55.21     Subd. 2.  [MODIFICATION COSTS.] (a) The costs of a public 
 55.22  utility incurred in the modification of central office switching 
 55.23  equipment for minimum 911 service shall be paid from the general 
 55.24  fund of the state treasury by appropriations for that purpose. 
 55.25     (b) The installation and recurring charges for integrating 
 55.26  cellular and other wireless access services 911 calls into 
 55.27  enhanced 911 systems must be paid by the commissioner of 
 55.28  administration if the 911 service provider is included in the 
 55.29  statewide design plan and the charges have been certified and 
 55.30  approved under subdivision 3, or the wireless access service 
 55.31  provider has completed a contract for service with the 
 55.32  department of administration, and charges are considered 
 55.33  reasonable and accurate by the department.  Charges payable to 
 55.34  wireless access service providers are not subject to the 
 55.35  provisions of subdivision 3. 
 55.36     Sec. 84.  Minnesota Statutes 1996, section 403.113, 
 56.1   subdivision 1, is amended to read: 
 56.2      Subdivision 1.  [FEE.] (a) In addition to the actual fee 
 56.3   assessed under section 403.11, each customer receiving local 
 56.4   telephone service, excluding including cellular or other nonwire 
 56.5   service, is assessed a fee to fund implementation and 
 56.6   maintenance of enhanced 911 service, including acquisition of 
 56.7   necessary equipment and the costs of the department of 
 56.8   administration to administer the program.  The enhanced fee 
 56.9   collected from cellular or other nonwire service customers must 
 56.10  be collected effective in July 1997 billings.  The actual fee 
 56.11  assessed under section 403.11 and the enhanced 911 service fee 
 56.12  must be collected as one amount and may not exceed the amount 
 56.13  specified in section 403.11, subdivision 1, paragraph (b). 
 56.14     (b) The enhanced 911 service fee must be collected and 
 56.15  deposited in the same manner as the fee in section 403.11 and 
 56.16  used solely for the purposes of paragraph (a) and subdivision 3. 
 56.17     (c) The commissioner of the department of administration, 
 56.18  in consultation with counties and 911 system users, shall 
 56.19  determine the amount of the enhanced 911 service fee and inform 
 56.20  telephone companies or communications carriers that provide 
 56.21  service capable of originating a 911 emergency telephone call of 
 56.22  the total amount of the 911 service fees in the same manner as 
 56.23  provided in section 403.11. 
 56.24     Sec. 85.  Minnesota Statutes 1996, section 403.113, 
 56.25  subdivision 2, is amended to read: 
 56.26     Subd. 2.  [DISTRIBUTION OF MONEY.] (a) After payment of the 
 56.27  costs of the department of administration to administer the 
 56.28  program, the commissioner shall distribute the money collected 
 56.29  under this section as follows: 
 56.30     (1) one-half of the amount equally to all qualified 
 56.31  counties, and after October 1, 1997, to all qualified counties, 
 56.32  existing ten public safety answering points operated by the 
 56.33  Minnesota state patrol, and each governmental entity operating 
 56.34  the individual public safety answering points serving the 
 56.35  metropolitan airports commission, Red Lake Indian Reservation, 
 56.36  and the University of Minnesota police department; and 
 57.1      (2) the remaining one-half to qualified counties and cities 
 57.2   with existing 911 systems based on each county's or city's 
 57.3   percentage of the total population of qualified counties and 
 57.4   cities.  The population of a qualified city with an existing 
 57.5   system must be deducted from its county's population when 
 57.6   calculating the county's share under this clause if the city 
 57.7   seeks direct distribution of its share. 
 57.8      (b) A county's share under subdivision 1 must be shared pro 
 57.9   rata between the county and existing city systems in the 
 57.10  county.  A county or city or other governmental entity as 
 57.11  described in paragraph (a), clause (1), shall deposit money 
 57.12  received under this subdivision in an interest-bearing fund or 
 57.13  account separate from the county's or city's governmental 
 57.14  entity's general fund and may use money in the fund or account 
 57.15  only for the purposes specified in subdivision 3. 
 57.16     (c) For the purposes of this subdivision, a county or city 
 57.17  is qualified to share in the distribution of money for enhanced 
 57.18  911 service if the county auditor certifies to the commissioner 
 57.19  of administration the amount of the county's or city's levy for 
 57.20  the cost of providing enhanced 911 service for taxes payable in 
 57.21  the year in which money for enhanced 911 service will be 
 57.22  distributed.  The commissioner may not distribute money to a 
 57.23  county or city in an amount greater than twice the amount of the 
 57.24  county's or city's certified levy.  A county or city or other 
 57.25  governmental entity as described in paragraph (a), clause (1), 
 57.26  is not qualified to share in the distribution of money for 
 57.27  enhanced 911 service if, in addition to the levy required under 
 57.28  this paragraph, it has not implemented enhanced 911 service 
 57.29  before December 31, 1998. 
 57.30     (d) For the purposes of this subdivision, "existing city 
 57.31  system" means a city 911 system that provides at least basic 911 
 57.32  service and that was implemented on or before April 1, 1993.  
 57.33     Sec. 86.  Minnesota Statutes 1996, section 403.113, 
 57.34  subdivision 3, is amended to read: 
 57.35     Subd. 3.  [LOCAL EXPENDITURES.] (a) Money distributed to 
 57.36  counties or an existing city system under subdivision 2 for 
 58.1   enhanced 911 service may be spent on enhanced 911 system costs 
 58.2   for the purposes stated in subdivision 1, paragraph (a).  In 
 58.3   addition, money may be spent to lease, purchase, lease-purchase, 
 58.4   or maintain enhanced 911 equipment, including telephone 
 58.5   equipment; recording equipment; computer hardware; computer 
 58.6   software for database provisioning, addressing, mapping, and any 
 58.7   other software necessary for automatic location identification 
 58.8   or local location identification; trunk lines; selective routing 
 58.9   equipment; the master street address guide; dispatcher public 
 58.10  safety answering point equipment proficiency and operational 
 58.11  skills; pay for long-distance charges incurred due to 
 58.12  transferring 911 calls to other jurisdictions; and the equipment 
 58.13  necessary within the public safety answering point for community 
 58.14  alert systems and to notify and communicate with the emergency 
 58.15  services requested by the 911 caller. 
 58.16     (b) Money distributed for enhanced 911 service may not be 
 58.17  spent on: 
 58.18     (1) purchasing or leasing of real estate or cosmetic 
 58.19  additions to or remodeling of communications centers; 
 58.20     (2) mobile communications vehicles, fire engines, 
 58.21  ambulances, law enforcement vehicles, or other emergency 
 58.22  vehicles; 
 58.23     (3) signs, posts, or other markers related to addressing or 
 58.24  any costs associated with the installation or maintenance of 
 58.25  signs, posts, or markers. 
 58.26     Sec. 87.  Minnesota Statutes 1996, section 403.113, 
 58.27  subdivision 4, is amended to read: 
 58.28     Subd. 4.  [AUDITS.] Each county and city or other 
 58.29  governmental entity as described in subdivision 2, paragraph 
 58.30  (a), clause (1), shall conduct an annual audit on the use of 
 58.31  funds distributed to it for enhanced 911 service.  A copy of 
 58.32  each audit report must be submitted to the commissioner of 
 58.33  administration. 
 58.34     Sec. 88.  Minnesota Statutes 1996, section 403.13, is 
 58.35  amended to read: 
 58.36     403.13 [CELLULAR TELEPHONE USE.] 
 59.1      Subdivision 1.  [CELLULAR 911 CALLS.] (a) Those 
 59.2   governmental entities that are responsible for the design, 
 59.3   planning, and coordination of the 911 emergency telephone system 
 59.4   under the requirements of this chapter shall ensure that a 911 
 59.5   emergency call made with a cellular or other wireless access 
 59.6   device is automatically connected to and answered by the 
 59.7   appropriate public safety answering point. 
 59.8      (b) In order to comply with paragraph (a), representatives 
 59.9   of each county's 911 planning committee shall consult with 
 59.10  representatives of the relevant district office of the state 
 59.11  patrol to allocate responsibility for answering emergency 911 
 59.12  calls in each county, and shall notify the department of 
 59.13  administration of the agreed upon allocation.  By April 1, 1998, 
 59.14  for the metropolitan area as defined in section 473.121, 
 59.15  subdivision 2, and June 1, 1998, for the area outside the 
 59.16  metropolitan area, the county 911 planning committees and the 
 59.17  district offices of the state patrol shall notify the department 
 59.18  of administration of any unresolved issues regarding the 
 59.19  allocation of responsibility for answering cellular 911 
 59.20  emergency calls.  
 59.21     (c) Unresolved issues in the metropolitan area must be 
 59.22  resolved by: 
 59.23     (1) the executive director of the metropolitan 911 board; 
 59.24     (2) the 911 product manager of the department of 
 59.25  administration; 
 59.26     (3) a representative appointed by the Minnesota state 
 59.27  sheriffs association from the metropolitan area; 
 59.28     (4) the commissioner of public safety or the commissioner's 
 59.29  designee; and 
 59.30     (5) a representative appointed by the Minnesota chiefs of 
 59.31  police association from the metropolitan area. 
 59.32     (d) Unresolved issues in the area outside the metropolitan 
 59.33  area must be resolved by: 
 59.34     (1) a representative appointed by association of Minnesota 
 59.35  counties from the area outside the metropolitan area; 
 59.36     (2) the 911 product manager of the department of 
 60.1   administration; 
 60.2      (3) a representative appointed by the Minnesota state 
 60.3   sheriffs association from the area outside the metropolitan 
 60.4   area; 
 60.5      (4) the commissioner of public safety or the commissioner's 
 60.6   designee; and 
 60.7      (5) a representative appointed by the Minnesota league of 
 60.8   cities from the area outside the metropolitan area. 
 60.9      (e) These committees shall resolve outstanding issues by 
 60.10  December 31, 1998.  The decision of the committee is final. 
 60.11     Subd. 2.  [NOTIFICATION OF SUBSCRIBERS.] A provider of 
 60.12  cellular or other wireless telephone services in Minnesota shall 
 60.13  notify its subscribers at the time of initial subscription and 
 60.14  four times per year thereafter that a 911 emergency call made 
 60.15  with a cellular wireless telephone is not always answered by a 
 60.16  local public safety answering point but rather is may be routed 
 60.17  to a state patrol dispatcher and that, accordingly, the caller 
 60.18  must provide specific information regarding the caller's 
 60.19  location. 
 60.20     Sec. 89.  [403.14] [WIRELESS ENHANCED 911 SERVICE PROVIDER; 
 60.21  LIABILITY.] 
 60.22     No wireless enhanced 911 emergency communication service 
 60.23  provider, its employees, or its agents is liable to any person 
 60.24  for civil damages resulting from or caused by any act or 
 60.25  omission in the development, design, installation, operation, 
 60.26  maintenance, performance, or provision of enhanced 911 wireless 
 60.27  service, except for willful or wanton misconduct.  No wireless 
 60.28  carrier, its employees, or its agents is liable to any person 
 60.29  who uses enhanced 911 wireless service for release of subscriber 
 60.30  information required under this chapter to any public safety 
 60.31  answering point. 
 60.32     Sec. 90.  Minnesota Statutes 1996, section 422A.101, 
 60.33  subdivision 3, is amended to read: 
 60.34     Subd. 3.  [STATE CONTRIBUTIONS.] (a) Subject to the 
 60.35  limitation set forth in paragraph (c), the state shall pay to 
 60.36  the Minneapolis employees retirement fund annually an amount 
 61.1   equal to the amount calculated under paragraph (b). 
 61.2      (b) The payment amount is an amount equal to the financial 
 61.3   requirements of the Minneapolis employees retirement fund 
 61.4   reported in the actuarial valuation of the fund prepared by the 
 61.5   commission-retained actuary pursuant to section 356.215 for the 
 61.6   most recent year but based on a target date for full 
 61.7   amortization of the unfunded actuarial accrued liabilities by 
 61.8   June 30, 2020, less the amount of employee contributions 
 61.9   required pursuant to section 422A.10, and the amount of employer 
 61.10  contributions required pursuant to subdivisions 1a, 2, and 2a.  
 61.11  Payments shall be made in four equal installments, occurring on 
 61.12  March 15, July 15, September 15, and November 15 annually.  
 61.13     (c) The annual state contribution under this subdivision 
 61.14  may not exceed $10,455,000 through fiscal year 1998 and 
 61.15  $9,000,000 beginning in fiscal year 1999, plus the cost of the 
 61.16  annual supplemental benefit determined under section 356.865. 
 61.17     (b) (d) If the amount determined under paragraph (a) (b) 
 61.18  exceeds the limitation on the state payment in paragraph 
 61.19  (a) $11,910,000, the excess must be allocated to and paid to the 
 61.20  fund by the employers identified in subdivisions 1a and 2, other 
 61.21  than units of metropolitan government.  Each employer's share of 
 61.22  the excess is proportionate to the employer's share of the 
 61.23  fund's unfunded actuarial accrued liability as disclosed in the 
 61.24  annual actuarial valuation prepared by the actuary retained by 
 61.25  the legislative commission on pensions and retirement compared 
 61.26  to the total unfunded actuarial accrued liability attributed to 
 61.27  all employers identified in subdivisions 1a and 2, other than 
 61.28  units of metropolitan government.  Payments must be made in 
 61.29  equal installments as set forth in paragraph (a) (b).  
 61.30     Sec. 91.  Minnesota Statutes 1996, section 465.87, is 
 61.31  amended by adding a subdivision to read: 
 61.32     Subd. 4.  [NONCANCELLATION.] Money appropriated to the 
 61.33  board for the cooperation and combination program does not 
 61.34  cancel but remains available until expended. 
 61.35     Sec. 92.  Minnesota Statutes 1996, section 473.894, 
 61.36  subdivision 3, is amended to read: 
 62.1      Subd. 3.  [APPLICATION TO FCC.] Within 180 days from 
 62.2   adoption of the regionwide public safety radio system 
 62.3   communication plan the commissioner of transportation, on behalf 
 62.4   of the state of Minnesota, shall use the plan adopted by the 
 62.5   board under subdivision 2 to submit an extended implementation 
 62.6   application to the Federal Communications Commission (FCC) for 
 62.7   the NPSPAC channels and other public safety frequencies 
 62.8   available for use in the metropolitan area and necessary to 
 62.9   implement the plan.  Local governments and all other public or 
 62.10  private entities eligible under part 90 of the FCC rules shall 
 62.11  not apply for public safety channels in the 821 to 824 and 866 
 62.12  to 869 megahertz bands for use within the metropolitan counties 
 62.13  until the FCC takes final action on the regional application 
 62.14  submitted under this section.  Exceptions to the restrictions on 
 62.15  the application for the NPSPAC channels may be granted by the 
 62.16  radio board.  The Minnesota department of transportation shall 
 62.17  hold the master system licenses for all public safety 
 62.18  frequencies assigned to the metropolitan area issued by the FCC 
 62.19  first phase under the board's plan and these channels shall be 
 62.20  used for the implementation of the plan.  Local governments and 
 62.21  other public and private entities eligible under part 90 of the 
 62.22  FCC rules may apply to the FCC as colicensees for subscriber 
 62.23  equipment and those portions of the network infrastructure owned 
 62.24  by them.  Application for colicensing under this section shall 
 62.25  require the concurrence of the radio board The radio board shall 
 62.26  hold the master system licenses for the public safety 
 62.27  frequencies assigned to local government subsystems under the 
 62.28  board's plan and these channels shall be used for implementation 
 62.29  of the plan.  Upon approval by the board of a local government's 
 62.30  subsystem plan and evidence of a signed contract with a vendor 
 62.31  for construction of a subsystem consistent with the board's 
 62.32  system plan, the board shall apply to the FCC to transfer to the 
 62.33  local government the licenses for the public safety frequencies 
 62.34  assigned by the plan for use in the network infrastructure owned 
 62.35  by the local government.  The radio board, the Minnesota 
 62.36  department of transportation, and local subsystem owners shall 
 63.1   jointly colicense all subscriber equipment for the backbone 
 63.2   system. 
 63.3      Sec. 93.  Laws 1994, chapter 643, section 3, subdivision 2, 
 63.4   is amended to read:  
 63.5   Subd. 2.  Restore and Renovate
 63.6   Capitol Building Exterior                             5,000,000
 63.7   To the commissioner of administration 
 63.8   to renovate and improve the capitol 
 63.9   including reroofing, repair of the roof 
 63.10  balustrade, and Quadriga restoration, 
 63.11  and for an exterior stone testing 
 63.12  program.  No more than $35,000 of this 
 63.13  appropriation is to the capitol area 
 63.14  architectural and planning board for 
 63.15  design review fees. 
 63.16     Sec. 94.  Laws 1996, chapter 463, section 13, subdivision 
 63.17  2, is amended to read:  
 63.18  Subd. 2.  Capital Asset
 63.19  Preservation and Replacement (CAPRA)                 12,000,000
 63.20  To be spent in accordance with 
 63.21  Minnesota Statutes, section 16A.632. 
 63.22  Up to $900,000 of the money 
 63.23  appropriated in this subdivision may be 
 63.24  used as necessary to renovate the 
 63.25  Governor's Residence in St. Paul for 
 63.26  life safety, code, security, and 
 63.27  ancillary storage facility improvements.
 63.28  Up to $600,000 of the money 
 63.29  appropriated in this subdivision may be 
 63.30  used to continue the electrical utility 
 63.31  infrastructure conversion of the 
 63.32  primary feeder loop system to a primary 
 63.33  selective system by rerouting the 
 63.34  system around the capitol. 
 63.35  In accordance with Minnesota Statutes, 
 63.36  section 16B.31, subdivision 6, the 
 63.37  commissioner of administration shall 
 63.38  identify the condition and suitability 
 63.39  of all major state buildings and office 
 63.40  space and report the commissioner's 
 63.41  findings by June 30, 1997, to the 
 63.42  chairs of the senate committee on 
 63.43  finance and the house of 
 63.44  representatives committees on ways and 
 63.45  means and on capital investment.  The 
 63.46  report must identify the useful life, 
 63.47  the current condition, the estimated 
 63.48  cost of currently needed repairs, and 
 63.49  the suitability for the current state 
 63.50  purposes of all major state-owned 
 63.51  buildings and office space owned or 
 63.52  leased by the state.  The legislature 
 63.53  intends to use the report in 
 63.54  considering future appropriations to 
 63.55  the commissioner of administration and 
 63.56  to state agencies for asset 
 63.57  preservation. 
 63.58     Sec. 95.  [INTERIM FEE; APPROPRIATION AND DISTRIBUTION.] 
 64.1      (a) Until June 30, 1998, the fee for enhanced wireless 911 
 64.2   service is ten cents per month in addition to the fee actually 
 64.3   collected under Minnesota Statutes, section 403.113, subdivision 
 64.4   1.  The additional fee is imposed effective July 1, 1997, and is 
 64.5   appropriated to the commissioner of administration for 
 64.6   distribution as established in Minnesota Statutes, section 
 64.7   403.113, subdivision 1. 
 64.8      (b) Distribution of the revenue from the fee under 
 64.9   Minnesota Statutes, section 403.113, subdivision 1, for enhanced 
 64.10  wireless 911 service must begin October 1, 1997.  The 
 64.11  commissioner of administration shall determine the amount of the 
 64.12  additional enhanced wireless 911 service fee to be in effect 
 64.13  beginning July 1, 1998, under Minnesota Statutes, section 
 64.14  403.113. 
 64.15     Sec. 96.  [INFORMATION TECHNOLOGY.] 
 64.16     By February 1, 1998, each executive branch state agency, 
 64.17  including the MNSCU system, shall report to the finance 
 64.18  divisions or committees in the House and the Senate that 
 64.19  appropriate money for the agency on current and planned 
 64.20  expenditures for information technology.  The report must 
 64.21  include: 
 64.22     (1) expenditures that will be incurred in the biennium 
 64.23  ending June 30, 1999, and any planned future expenditures for 
 64.24  each information technology project in the agency; 
 64.25     (2) the goals and objectives for each information 
 64.26  technology project that is being developed in the biennium 
 64.27  ending June 30, 1999, or that is planned for a future biennium; 
 64.28  and 
 64.29     (3) the agency's progress in making its information 
 64.30  technology systems compliant with the year 2000. 
 64.31     Sec. 97.  [MINNESOTA CORPORATE SUBSIDY REFORM COMMISSION.] 
 64.32     Subdivision 1.  [ESTABLISHMENT.] (a) A bipartisan Minnesota 
 64.33  corporate subsidy reform commission is created. 
 64.34     (b) The commission shall evaluate selected subsidy programs 
 64.35  and tax laws for the following: 
 64.36     (1) public purpose; including jobs, wages, and other 
 65.1   economic development benefits; 
 65.2      (2) criterion for award; and 
 65.3      (3) accountability and enforcement mechanisms used to 
 65.4   facilitate the achievement of the public purpose. 
 65.5      (c) The commission shall examine whether these subsidy 
 65.6   programs or tax laws impede competition or provide preferential 
 65.7   treatment to private enterprises. 
 65.8      Subd. 2.  [SCOPE.] The commission shall review subsidy 
 65.9   programs and tax laws including: 
 65.10     (1) tax expenditures and other tax concessions; 
 65.11     (2) direct spending and loans; 
 65.12     (3) public spending that indirectly affects the economic 
 65.13  development of the region; and 
 65.14     (4) regulation of private activity for the purpose of 
 65.15  economic development. 
 65.16     Subd. 3.  [REPORT.] The commission shall submit a report to 
 65.17  the legislature by December 15, 1997.  Included within the 
 65.18  report, the commission may suggest changes in the public 
 65.19  purpose, criterion for award, administration, accountability and 
 65.20  enforcement mechanisms, and funding of the subsidy programs.  
 65.21  The commission may also suggest changes in the applicable tax 
 65.22  laws. 
 65.23     Subd. 4.  [MEMBERSHIP.] The commission consists of 19 
 65.24  members.  The speaker of the house shall appoint five members, 
 65.25  including at least two members of the minority caucus.  The 
 65.26  senate subcommittee on committees shall appoint five members, 
 65.27  including at least two members of the minority caucus.  The 
 65.28  commissioner of trade and economic development and the 
 65.29  commissioner of revenue shall each appoint one member from their 
 65.30  respective departments.  These members shall appoint seven 
 65.31  members from the general public, of which at most two members 
 65.32  directly receive some type of public assistance described in 
 65.33  subdivision 2. 
 65.34     Subd. 5.  [STAFF ASSISTANCE.] House and senate employees 
 65.35  must staff the commission. 
 65.36     Subd. 6.  [NOTIFICATION.] In accordance with Minnesota 
 66.1   Statutes, section 471.705, the public may attend any meeting 
 66.2   held by the commission. 
 66.3      Subd. 7.  [EXPIRATION.] The commission established under 
 66.4   subdivision 1 expires July 1, 1998. 
 66.5      Sec. 98.  [ADVISORY COUNCIL ON LOCAL GOVERNMENT.] 
 66.6      Subdivision 1.  [ESTABLISHED.] An advisory council on the 
 66.7   roles and responsibilities of local governments is established. 
 66.8      Subd. 2.  [DUTIES.] The advisory council shall study and 
 66.9   make recommendations to the legislature by July 1, 1998, on the 
 66.10  appropriate roles and responsibilities of local and regional 
 66.11  government in the metropolitan area, as defined in Minnesota 
 66.12  Statutes, section 473.121, subdivision 2.  The advisory council 
 66.13  shall examine: 
 66.14     (1) what services should be provided and what functions 
 66.15  fulfilled by local or regional government; 
 66.16     (2) what level of government is appropriate for the 
 66.17  efficient, effective, and equitable delivery of these services 
 66.18  and functions; 
 66.19     (3) what powers are needed by local and regional government 
 66.20  to deliver the services; and 
 66.21     (4) what governance structures will meet the identified 
 66.22  roles and responsibilities of local and regional government and 
 66.23  be responsive to, understandable by, and accountable to citizens.
 66.24     The advisory council may consider alternatives to the 
 66.25  existing governance structures in order to fulfill the 
 66.26  requirements of this section. 
 66.27     Subd. 3.  [MEMBERSHIP.] The advisory council consists of 25 
 66.28  members, who serve at the pleasure of the appointing authority, 
 66.29  as follows: 
 66.30     (1) four representatives of cities, appointed by the 
 66.31  association of metropolitan municipalities; 
 66.32     (2) two representatives of towns, appointed by the 
 66.33  Minnesota association of townships; 
 66.34     (3) four representatives of counties, appointed by the 
 66.35  association of Minnesota counties; 
 66.36     (4) two representatives of school districts, appointed by 
 67.1   the Minnesota school boards association; 
 67.2      (5) eight legislators; four house members, of whom two are 
 67.3   members of the majority caucus appointed by the speaker of the 
 67.4   house of representatives and two are members of the minority 
 67.5   caucus appointed by the house minority leader; and four senate 
 67.6   members, of whom two are members of the majority caucus and two 
 67.7   are members of the minority caucus, appointed by the committee 
 67.8   on rules and legislative administration; 
 67.9      (6) the chair of the metropolitan council, or the chair's 
 67.10  designee; and 
 67.11     (7) four public members, appointed by the governor. 
 67.12     Members must be appointed as soon as practicable after the 
 67.13  effective date of this section. 
 67.14     Subd. 4.  [FIRST MEETING; SELECTION OF A CHAIR.] A member 
 67.15  appointed by the association of metropolitan municipalities 
 67.16  shall be selected by the association to convene the first 
 67.17  meeting of the advisory council.  At the first meeting, the 
 67.18  advisory council shall select a member to serve as chair. 
 67.19     Subd. 5.  [ADMINISTRATIVE; STAFF ASSISTANCE.] The office of 
 67.20  strategic and long-range planning shall provide administrative 
 67.21  and staff assistance to the advisory council. 
 67.22     Subd. 6.  [EXPIRATION.] The advisory council established 
 67.23  under subdivision 1 expires June 30, 1999. 
 67.24     Sec. 99.  [ECONOMIC POLICY AND STRATEGIC PLANNING SURVEY.] 
 67.25     The director of the office of strategic and long-range 
 67.26  planning shall survey the possible means of establishing and 
 67.27  sustaining an ongoing state economic policy and the accompanying 
 67.28  strategic planning and measures of success.  Specifically, the 
 67.29  survey should: 
 67.30     (1) review and summarize previous and ongoing efforts to 
 67.31  guide economic goals for Minnesota; 
 67.32     (2) recommend a set of overall goals or possible 
 67.33  alternatives for goals that reflects consensus, focusing on 
 67.34  economic foundations including workforce development, public 
 67.35  infrastructure, well-managed natural resources, technological 
 67.36  innovation and commercialization, access to capital, and tax and 
 68.1   regulatory climate; 
 68.2      (3) identify and critique models of economic policy and 
 68.3   strategic planning from other states; 
 68.4      (4) consider methods of establishing and funding a 
 68.5   broad-based, bipartisan economic policy council which will 
 68.6   include substantial public and private participation; 
 68.7      (5) consider methods of integrating and consolidating the 
 68.8   economic policy work of existing councils, commissions, and task 
 68.9   forces; and 
 68.10     (6) report the findings, including recommendations as to 
 68.11  composition and organization of an economic policy council and 
 68.12  appropriate guidelines for the council, to the legislature by 
 68.13  December 1, 1997. 
 68.14     Sec. 100.  [JUDICIAL BUILDING CAFETERIAS.] 
 68.15     The commissioner of administration shall close the 
 68.16  cafeteria in the judicial building unless the judicial branch 
 68.17  agrees to pay the commissioner an amount sufficient to offset 
 68.18  operating losses. 
 68.19     Sec. 101.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 68.20     Appointing authorities in state government shall encourage 
 68.21  each employee to take an unpaid leave of absence for up to 160 
 68.22  hours during the period ending June 30, 1999.  Each appointing 
 68.23  authority approving such a leave shall allow the employee to 
 68.24  continue accruing vacation and sick leave, be eligible for paid 
 68.25  holidays and insurance benefits, accrue seniority, and accrue 
 68.26  service credit in state retirement plans permitting service 
 68.27  credits for authorized leaves of absence as if the employee had 
 68.28  actually been employed during the time of the leave.  If the 
 68.29  leave of absence is for one full pay period or longer, any 
 68.30  holiday pay shall be included in the first payroll warrant after 
 68.31  return from the leave of absence.  The appointing authority 
 68.32  shall attempt to grant requests for unpaid leaves of absence 
 68.33  consistent with the need to continue efficient operation of the 
 68.34  agency.  However, each appointing authority shall retain 
 68.35  discretion to grant or refuse to grant requests for leaves of 
 68.36  absence and to schedule and cancel leaves, subject to applicable 
 69.1   provisions of collective bargaining agreements and compensation 
 69.2   plans.  Any cost savings resulting from this section cancel to 
 69.3   the fund from which the money was saved.  It is anticipated that 
 69.4   this section will result in savings to the general fund of 
 69.5   $200,000 in each year of the biennium ending June 30, 1999. 
 69.6      Sec. 102.  [INFORMATION POLICY TASK FORCE.] 
 69.7      Subdivision 1.  [CREATION.] An information policy 
 69.8   legislative task force is created to study and make 
 69.9   recommendations regarding Minnesota law on public information 
 69.10  policy, including government data practices and information 
 69.11  technology issues.  The task force consists of: 
 69.12     (1) two members of the senate appointed by the subcommittee 
 69.13  on committees of the committee on rules and administration; 
 69.14     (2) two members of the house of representatives appointed 
 69.15  by the speaker; 
 69.16     (3) four members appointed by the governor; 
 69.17     (4) two nonlegislative members appointed by the committee 
 69.18  on rules and administration of the senate; and 
 69.19     (5) two nonlegislative members appointed by the speaker of 
 69.20  the house of representatives.  
 69.21     At least one member from each body must be a member of the 
 69.22  majority party and at least one member from each body must be a 
 69.23  member of the minority party. 
 69.24     Subd. 2.  [DUTIES; REPORT.] The task force shall study: 
 69.25     (1) the content and organization of government data 
 69.26  practices statutes in Minnesota Statutes, chapter 13, and 
 69.27  related statutes dealing with access to government data, fair 
 69.28  information practices, and privacy; 
 69.29     (2) issues related to surveillance and other forms of 
 69.30  information technology, including the impact of technology on 
 69.31  data practices and privacy; 
 69.32     (3) procedures and structures for developing and 
 69.33  implementing a coherent and coordinated approach to public 
 69.34  information policy; 
 69.35     (4) the advisability of changing the government data 
 69.36  practices act under Minnesota Statutes, chapter 13, to remove 
 70.1   barriers to integrated service delivery in order to allow 
 70.2   interagency sharing of client information; 
 70.3      (5) approaches to information policy in other states and 
 70.4   foreign jurisdictions; and 
 70.5      (6) other information policy issues identified by the task 
 70.6   force. 
 70.7      In its study of statutes under clause (1), the task force 
 70.8   shall include an evaluation to determine whether any statutes 
 70.9   are inconsistent or obsolete. 
 70.10     The task force shall report its findings and 
 70.11  recommendations, including any proposed legislation, to the 
 70.12  legislature by February 1, 1998. 
 70.13     Subd. 3.  [SUPPORT.] The commissioner of administration and 
 70.14  the director of the office of strategic and long-range planning 
 70.15  shall provide staff and other support services to the task 
 70.16  force.  The executive director of the office of technology or a 
 70.17  designee shall assist in the study.  Legislative support to the 
 70.18  task force must come from existing resources. 
 70.19     Subd. 4.  [EXPIRATION.] The task force expires June 30, 
 70.20  1998.  
 70.21     Sec. 103.  [ESTABLISHMENT OF INTERIM ECONOMIC STRATEGY 
 70.22  GROUP.] 
 70.23     (a) By January 1, 1998, the director of the office of 
 70.24  strategic and long-range planning shall convene an interim 
 70.25  economic strategy group to define the structure of the economic 
 70.26  policy council and the long-range vision for the Minnesota 
 70.27  economy.  The interim group shall be comprised of 16 members 
 70.28  from the public and private sectors with demonstrated leadership 
 70.29  and vision in the area of economic foundations with perspectives 
 70.30  on global competitiveness.  Eight members shall be appointed as 
 70.31  follows:  two by the governor, two by the speaker of the house 
 70.32  of representatives, one by the minority leader of the house of 
 70.33  representatives, two by the president of the senate and one by 
 70.34  the senate minority leader.  These eight members shall appoint 
 70.35  eight additional members. 
 70.36     (b) The interim group shall report its findings and 
 71.1   recommendations to the legislature by January 1, 1999.  The 
 71.2   report shall include recommendations for legislative action 
 71.3   regarding establishment of and appropriations for a permanent 
 71.4   economic policy council. 
 71.5      Sec. 104.  [RULE VOID.] 
 71.6      (a) That portion of Minnesota Rules, part 1350.7300, 
 71.7   subpart 2, which requires that commercial office space must be 
 71.8   separated from other areas of the building by floor-to-ceiling 
 71.9   walls is void. 
 71.10     (b) The commissioner of administration shall amend 
 71.11  Minnesota Rules, part 1350.7300, subpart 2, to conform with 
 71.12  paragraph (a).  This amendment may be done in the manner 
 71.13  specified in Minnesota Statutes, section 14.388, clause (3), or 
 71.14  may be done the next time the commissioner proposes other 
 71.15  amendments to rules relating to the state building code or 
 71.16  manufactured homes. 
 71.17     Sec. 105.  [INSTRUCTION TO REVISOR.] 
 71.18     The revisor of statutes shall change the term "ethical 
 71.19  practices board" to "board of public disclosure" wherever it 
 71.20  appears in Minnesota Statutes and Minnesota Rules. 
 71.21     Sec. 106.  [REPEALER.] 
 71.22     (a) Minnesota Statutes 1996, sections 16A.102; 116C.80; and 
 71.23  138.35, subdivision 3, are repealed. 
 71.24     (b) Minnesota Statutes 1996, section 16B.58, subdivision 8, 
 71.25  is repealed. 
 71.26     Sec. 107.  [EFFECTIVE DATES.] 
 71.27     Sections 34, 48, 50 to 55, 58, 82, 83, 85 to 89, 91, 92, 
 71.28  104, and 106, paragraph (b), are effective the day following 
 71.29  final enactment.  Section 56 is effective March 1, 1998.  
 71.30  Section 74 is effective September 1, 1997. 
 71.31                             ARTICLE 2 
 71.32                      COMMUNITY-BASED PLANNING 
 71.33     Section 1.  [4A.08] [COMMUNITY-BASED PLANNING GOALS.] 
 71.34     The goals of community-based planning are: 
 71.35     (1) [CITIZEN PARTICIPATION.] To develop a community-based 
 71.36  planning process with broad citizen participation in order to 
 72.1   build local capacity to plan for sustainable development and to 
 72.2   benefit from the insights, knowledge, and support of local 
 72.3   residents.  The process must include at least one citizen from 
 72.4   each affected unit of local government; 
 72.5      (2) [ECONOMIC DEVELOPMENT.] To create sustainable economic 
 72.6   development strategies and provide economic opportunities 
 72.7   throughout the state that will achieve a balanced distribution 
 72.8   of growth statewide; 
 72.9      (3) [CONSERVATION.] To protect, preserve, and enhance the 
 72.10  state's resources, including agricultural land, forests, surface 
 72.11  water and groundwater, recreation and open space, native 
 72.12  biodiversity and ecosystems, scenic areas, and significant 
 72.13  historic and archaeological sites; 
 72.14     (4) [LIVABLE COMMUNITY DESIGN.] To strengthen communities 
 72.15  by following the principles of livable community design in 
 72.16  development and redevelopment, including integration of all 
 72.17  income and age groups, mixed land uses and compact development, 
 72.18  affordable and life-cycle housing, green spaces, access to 
 72.19  public transit, bicycle and pedestrian ways, and enhanced 
 72.20  aesthetics and beauty in public spaces; 
 72.21     (5) [HOUSING.] To provide and preserve an adequate supply 
 72.22  of affordable and life-cycle housing throughout the state; 
 72.23     (6) [TRANSPORTATION.] To focus on the movement of people 
 72.24  and goods, rather than on the movement of automobiles, in 
 72.25  transportation planning, and to maximize the efficient use of 
 72.26  the transportation infrastructure by increasing the availability 
 72.27  and use of appropriate public transit throughout the state 
 72.28  through land-use planning and design that makes public transit 
 72.29  economically viable and desirable; 
 72.30     (7) [LAND-USE PLANNING.] To establish a community-based 
 72.31  framework as a basis for all decisions and actions related to 
 72.32  land use; 
 72.33     (8) [PUBLIC INVESTMENTS.] To ensure that funding required 
 72.34  for new or improved infrastructure needed to accommodate new 
 72.35  development, including, but not limited to, roads, water, sewers 
 72.36  and sewage treatment facilities, schools, and recreation areas, 
 73.1   will be available before proceeding with the new development; 
 73.2      (9) [PUBLIC EDUCATION.] To support research and public 
 73.3   education on a community's and the state's finite capacity to 
 73.4   accommodate growth, and the need for planning and resource 
 73.5   management that will sustain growth; and 
 73.6      (10) [SUSTAINABLE DEVELOPMENT.] To provide a better quality 
 73.7   of life for all residents while maintaining nature's ability to 
 73.8   function over time by minimizing waste, preventing pollution, 
 73.9   promoting efficiency, and developing local resources to 
 73.10  revitalize the local economy. 
 73.11     Sec. 2.  [4A.09] [TECHNICAL ASSISTANCE.] 
 73.12     The office shall provide local governments technical and 
 73.13  financial assistance in preparing their comprehensive plans to 
 73.14  meet the community-based planning goals in section 4A.08.  Joint 
 73.15  planning districts, formed under section 394.232, subdivision 4, 
 73.16  or 462.3535, subdivision 3, must receive priority for technical 
 73.17  or financial assistance. 
 73.18     Sec. 3.  [4A.10] [PLAN REVIEW AND APPROVAL.] 
 73.19     The office shall review and approve community-based 
 73.20  comprehensive plans prepared by counties, including the 
 73.21  community-based plans of municipalities that are incorporated 
 73.22  into a county's plan, as required in section 394.232. 
 73.23     Sec. 4.  [394.232] [COMMUNITY-BASED PLANNING.] 
 73.24     Subdivision 1.  [GENERAL.] A county may prepare a 
 73.25  comprehensive plan that meets the goals of community-based 
 73.26  planning in section 4A.08.  The requirements of this section 
 73.27  only apply to a county that determines to prepare a 
 73.28  community-based plan and seek funding from the office of 
 73.29  strategic and long-range planning for community-based planning. 
 73.30     Subd. 2.  [COORDINATION.] A county that prepares a 
 73.31  community-based plan shall coordinate its plan with the plans of 
 73.32  its neighbors and its constituent municipalities and towns in 
 73.33  order both to prevent its plan from having an adverse impact on 
 73.34  other jurisdictions and to complement plans of other 
 73.35  jurisdictions.  The county's plan must incorporate the 
 73.36  community-based plan of any municipality or town in the county. 
 74.1      Subd. 3.  [REVIEW AND APPROVAL.] The county shall submit 
 74.2   its community-based plan to the office of strategic and 
 74.3   long-range planning for review and approval.  The county shall 
 74.4   not adopt or implement the plan until it has been approved. 
 74.5      Subd. 4.  [JOINT PLANNING.] Under the joint exercise of 
 74.6   powers provisions in section 471.59, a county may establish a 
 74.7   joint planning district with other counties, municipalities, and 
 74.8   towns, that are geographically contiguous, to adopt a single 
 74.9   community-based plan for the district.  The county may delegate 
 74.10  its authority to adopt official controls under this chapter, to 
 74.11  the board of the joint planning district. 
 74.12     Subd. 5.  [PLAN UPDATE.] The county board, or the board of 
 74.13  the joint planning district, shall review and update the 
 74.14  community-based comprehensive plan periodically, but at least 
 74.15  every ten years, and submit the updated plan to the office of 
 74.16  strategic and long-range planning for review and approval. 
 74.17     Sec. 5.  Minnesota Statutes 1996, section 394.24, 
 74.18  subdivision 1, is amended to read: 
 74.19     Subdivision 1.  [ADOPTED BY ORDINANCE.] Official controls 
 74.20  which shall further the purpose and objectives of the 
 74.21  comprehensive plan and parts thereof shall be adopted by 
 74.22  ordinance.  The board shall not adopt or implement official 
 74.23  controls that are inconsistent or in conflict with the adopted 
 74.24  comprehensive plan.  If a comprehensive plan is in conflict with 
 74.25  an official control, the official control must be brought into 
 74.26  conformance with the plan by the board.  The comprehensive plan 
 74.27  must provide guidelines for the timing and sequence of the 
 74.28  adoption of official controls to ensure planned, orderly, and 
 74.29  staged development and redevelopment consistent with the 
 74.30  comprehensive plan.  
 74.31     Sec. 6.  [462.3535] [COMMUNITY-BASED PLANNING.] 
 74.32     Subdivision 1.  [GENERAL.] A municipality may prepare a 
 74.33  community-based comprehensive municipal plan that meets the 
 74.34  goals of community-based planning in section 4A.08.  The 
 74.35  requirements of this section only apply to a municipality that 
 74.36  determines to prepare a community-based plan and seek funding 
 75.1   from the office of strategic and long-range planning for 
 75.2   community-based planning. 
 75.3      Subd. 2.  [COORDINATION.] A municipality that prepares a 
 75.4   community-based comprehensive municipal plan shall coordinate 
 75.5   its plan with the plans, if any, of the county and the 
 75.6   municipality's neighbors both in order to prevent the plan from 
 75.7   having an adverse impact on other jurisdictions and to 
 75.8   complement the plans of other jurisdictions.  The municipality 
 75.9   shall prepare its plan to be incorporated into the county's 
 75.10  community-based plan, if the county is preparing or has prepared 
 75.11  one, and shall otherwise assist and cooperate with the county in 
 75.12  its community-based planning. 
 75.13     Subd. 3.  [JOINT PLANNING.] Under the joint exercise of 
 75.14  powers provisions in section 471.59, a municipality may 
 75.15  establish a joint planning district with other municipalities or 
 75.16  counties that are geographically contiguous, to adopt a single 
 75.17  community-based plan for the district.  A municipality may 
 75.18  delegate its authority to adopt official controls under sections 
 75.19  462.351 to 462.364, to the board of the joint planning district. 
 75.20     Sec. 7.  Minnesota Statutes 1996, section 462.357, 
 75.21  subdivision 2, is amended to read: 
 75.22     Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
 75.23  adoption of a land use plan for the municipality, the planning 
 75.24  agency, for the purpose of carrying out the policies and goals 
 75.25  of the land use plan, may prepare a proposed zoning ordinance 
 75.26  and submit it to the governing body with its recommendations for 
 75.27  adoption.  Subject to the requirements of subdivisions 3, 4 and 
 75.28  5, the governing body may adopt and amend a zoning ordinance by 
 75.29  a two-thirds vote of all its members.  If the comprehensive 
 75.30  municipal plan is in conflict with the zoning ordinance, the 
 75.31  zoning ordinance supersedes the plan.  The governing body may 
 75.32  not adopt or implement official controls that are inconsistent 
 75.33  or conflict with the adopted comprehensive municipal plan.  If a 
 75.34  comprehensive municipal plan is in conflict with an official 
 75.35  control, the official control must be brought into conformance 
 75.36  with the plan by the governing body.  The plan must provide 
 76.1   guidelines for the timing and sequence of the adoption of 
 76.2   official controls to ensure planned, orderly, and staged 
 76.3   development and redevelopment consistent with the plan. 
 76.4      Sec. 8.  [473.1455] [METROPOLITAN DEVELOPMENT GUIDE GOALS.] 
 76.5      The metropolitan council shall amend the metropolitan 
 76.6   development guide, as necessary, to reflect and implement the 
 76.7   community-based planning goals in section 4A.08.  The office of 
 76.8   strategic and long-range planning shall review and comment on 
 76.9   the metropolitan development guide.  The council may not approve 
 76.10  local comprehensive plans or plan amendments after July 1, 1999, 
 76.11  until the metropolitan council has received and considered the 
 76.12  comments of the office of strategic and long-range planning. 
 76.13     Sec. 9.  [ADVISORY COUNCIL ON COMMUNITY-BASED PLANNING.] 
 76.14     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] An advisory 
 76.15  council on community-based planning is established to provide a 
 76.16  forum for discussion and development of the framework for 
 76.17  community-based planning and the incentives and tools to 
 76.18  implement the plans. 
 76.19     Subd. 2.  [DUTIES.] The advisory council shall propose 
 76.20  legislation for the 1998 legislative session to establish the 
 76.21  framework to implement community-based planning.  The advisory 
 76.22  council shall: 
 76.23     (1) develop a model process to involve citizens in 
 76.24  community-based planning from the beginning of the planning 
 76.25  process; 
 76.26     (2) hold meetings statewide to solicit advice and 
 76.27  information on how to implement community-based planning; 
 76.28     (3) develop specific, measurable criteria by which plans 
 76.29  will be reviewed for consistency with the goals in section 
 76.30  4A.08, and approved by the office of strategic and long-range 
 76.31  planning; 
 76.32     (4) recommend a procedure for review and approval of 
 76.33  community-based plans; 
 76.34     (5) recommend a process for coordination of plans among 
 76.35  local jurisdictions; 
 76.36     (6) recommend an alternative dispute resolution method for 
 77.1   citizens and local governments to use to challenge proposed 
 77.2   plans or the implementation of plans; 
 77.3      (7) recommend incentives to encourage state agencies to 
 77.4   implement the goals of community-based planning; 
 77.5      (8) recommend incentives for local governments to develop 
 77.6   community-based plans, including for example, assistance with 
 77.7   computerized geographic information systems, builders' remedies 
 77.8   and density bonuses, and revised permitting processes; 
 77.9      (9) describe the tools and strategies that a county may use 
 77.10  to achieve the goals, including, but not limited to, densities, 
 77.11  urban growth boundaries, purchase or transfer of development 
 77.12  rights programs, public investment surcharges, transit and 
 77.13  transit-oriented development, and zoning and other official 
 77.14  controls; 
 77.15     (10) recommend the time frame in which the community-based 
 77.16  plans must be completed; 
 77.17     (11) consider the need for ongoing stewardship and 
 77.18  oversight of sustainable development initiatives and the 
 77.19  community-based planning process; and 
 77.20     (12) make other recommendations to implement 
 77.21  community-based planning as the advisory council determines 
 77.22  would be necessary or helpful in achieving the goals. 
 77.23     Subd. 3.  [MEMBERSHIP.] The advisory council consists of 22 
 77.24  members who serve at the pleasure of the appointing authority as 
 77.25  follows: 
 77.26     (1) two members of the majority caucus of the house of 
 77.27  representatives appointed by the speaker, and two members of the 
 77.28  minority caucus appointed by the minority leader; 
 77.29     (2) four members of the senate appointed by the committee 
 77.30  on rules and administration of the senate, two of whom shall be 
 77.31  members of the minority caucus; 
 77.32     (3) the commissioners, or their designees, of the 
 77.33  departments of natural resources, agriculture, transportation, 
 77.34  and trade and economic development, and the director, or the 
 77.35  director's designee, of the office of strategic and long-range 
 77.36  planning; 
 78.1      (4) the chair of the metropolitan council; 
 78.2      (5) four public members, who are knowledgeable about and 
 78.3   have experience in local government issues and planning, 
 78.4   appointed by the speaker of the house of representatives; and 
 78.5      (6) four public members, who are knowledgeable about and 
 78.6   have experience in local government issues and planning, 
 78.7   appointed by the committee on rules and administration of the 
 78.8   senate. 
 78.9      The advisory council may form an executive committee to 
 78.10  facilitate the work of the council. 
 78.11     Subd. 4.  [FIRST MEETING; CHAIR.] The director of the 
 78.12  office of strategic and long-range planning, or the director's 
 78.13  designee, shall convene the first meeting of the advisory 
 78.14  council.  At its first meeting, the advisory council shall 
 78.15  select from among its members a person to serve as chair. 
 78.16     Subd. 5.  [ADMINISTRATION.] The office of strategic and 
 78.17  long-range planning, with assistance from other state agencies 
 78.18  and the metropolitan council as needed, shall provide 
 78.19  administrative and staff assistance to the advisory council.  
 78.20  The attorney general shall provide advice on legal issues to the 
 78.21  advisory council. 
 78.22     Subd. 6.  [EXPIRATION.] This section expires June 30, 1998. 
 78.23     Sec. 10.  [CITATION.] 
 78.24     Sections 1 to 9 may be cited as the "Community-based 
 78.25  Planning Act." 
 78.26     Sec. 11.  [APPLICATION.] 
 78.27     Minnesota Statutes, section 473.1455, applies in the 
 78.28  counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
 78.29  Washington. 
 78.30     Sec. 12.  [EFFECTIVE DATES.] 
 78.31     Sections 1, 9, and 10 are effective the day after final 
 78.32  enactment.  Sections 2 to 8, and 11 are effective July 1, 1998. 
 78.33                             ARTICLE 3 
 78.34                      PLANNING PILOT PROJECTS 
 78.35     Section 1.  [PILOT PROJECTS ESTABLISHED.] 
 78.36     The office of strategic and long-range planning shall 
 79.1   establish comprehensive land use planning pilot projects as 
 79.2   specified in this article. 
 79.3      Sec. 2.  [DEFINITIONS.] 
 79.4      Subdivision 1.  [APPLICABILITY.] Except as otherwise 
 79.5   provided in this article, the definitions in Minnesota Statutes, 
 79.6   sections 394.22 and 462.352, apply to this article. 
 79.7      Subd. 2.  [CITIZEN.] "Citizen" means a person who resides 
 79.8   within the jurisdiction, who is not on the governing body of the 
 79.9   county, city, town, or joint planning district. 
 79.10     Subd. 3.  [CITY.] "City" means a statutory or home rule 
 79.11  charter city. 
 79.12     Subd. 4.  [GOALS.] "Goals" means the goals established in 
 79.13  section 3. 
 79.14     Subd. 5.  [GOVERNING BODY.] "Governing body" means the 
 79.15  governing body of the county, city, town, or joint planning 
 79.16  district. 
 79.17     Subd. 6.  [OFFICE.] "Office" means the office of strategic 
 79.18  and long-range planning. 
 79.19     Subd. 7.  [PLAN OR COMPREHENSIVE PLAN.] "Plan" or 
 79.20  "comprehensive plan" means a plan meeting the requirements of 
 79.21  Minnesota Statutes, chapter 394, for counties, Minnesota 
 79.22  Statutes, sections 462.351 to 462.364, for cities and towns, and 
 79.23  the requirements of this article. 
 79.24     Subd. 8.  [URBAN GROWTH AREA.] "Urban growth area" means 
 79.25  the area designated in the comprehensive plan for a city within 
 79.26  which there is a sufficient supply of developable land for at 
 79.27  least a prospective 20-year period, based on demographic 
 79.28  forecasts and the density at which the city wishes to develop. 
 79.29     Sec. 3.  [PLANNING GOALS.] 
 79.30     Subdivision 1.  [GOALS.] The ten goals of comprehensive 
 79.31  land use planning are as stated in subdivisions 2 to 10. 
 79.32     Subd. 2.  [CITIZEN PARTICIPATION.] Develop a planning 
 79.33  process with broad citizen participation in order to build local 
 79.34  capacity to plan for sustainable development and to benefit from 
 79.35  the insights, knowledge, and support of local residents.  The 
 79.36  process must include at least one citizen from each affected 
 80.1   unit of local government.  
 80.2      Subd. 3.  [COOPERATION.] Promote cooperation among 
 80.3   communities to: 
 80.4      (1) work towards the most efficient, planned, and 
 80.5   cost-effective delivery of governmental services by, among other 
 80.6   means, facilitating cooperative agreements among adjacent 
 80.7   communities; and 
 80.8      (2) coordinate planning to ensure compatibility of one 
 80.9   community's development with the development of neighboring 
 80.10  communities. 
 80.11     Subd. 4.  [ECONOMIC DEVELOPMENT.] Create sustainable 
 80.12  economic development strategies and provide economic 
 80.13  opportunities throughout the state that will achieve a balanced 
 80.14  distribution of growth statewide. 
 80.15     Subd. 5.  [PUBLIC INVESTMENT.] Identify the full 
 80.16  environmental, social, and economic costs of new development, 
 80.17  including infrastructure costs such as transportation, sewers 
 80.18  and wastewater treatment, water, schools, recreation, and open 
 80.19  space, and ensure the funds necessary to cover the costs of the 
 80.20  infrastructure will be available. 
 80.21     Subd. 6.  [LIVABLE COMMUNITY DESIGN.] Strengthen 
 80.22  communities by following the principles of livable community 
 80.23  design, which includes planning for the efficient use of land 
 80.24  resources through the use of compact and mixed-use development, 
 80.25  open spaces, integration of differing housing types to serve all 
 80.26  income and age groups, access to public transit, bicycle and 
 80.27  pedestrian ways, and enhanced aesthetics and beauty in public 
 80.28  spaces. 
 80.29     Subd. 7.  [SUSTAINABLE DEVELOPMENT.] Encourage development 
 80.30  consistent with the definition of sustainable development in 
 80.31  Minnesota Statutes, section 4A.07, subdivision 1, and use 
 80.32  natural resources and public funds efficiently by directing 
 80.33  growth towards areas with existing infrastructure. 
 80.34     Subd. 8.  [CONSERVATION.] Protect, preserve, and enhance 
 80.35  the state's resources, including agricultural land, forests, 
 80.36  surface water and groundwater, recreation and open space, native 
 81.1   species and ecosystems, scenic areas, and significant historic 
 81.2   and archaeological sites. 
 81.3      Subd. 9.  [HOUSING.] Provide and preserve an adequate 
 81.4   supply of affordable and life-cycle housing throughout the state.
 81.5      Subd. 10.  [TRANSPORTATION.] Focus on the movement of 
 81.6   people and goods, rather than on the movement of automobiles, in 
 81.7   transportation planning, and maximize the efficient use of the 
 81.8   transportation infrastructure by increasing the availability and 
 81.9   use of appropriate public transit throughout the state through 
 81.10  land use planning and design that makes public transit 
 81.11  economically viable and desirable. 
 81.12     Subd. 11.  [COMMUNITY IDENTITY.] Respect and foster 
 81.13  diversity among communities and permit communities to maintain 
 81.14  individual and separate identities and character consistent with 
 81.15  state law. 
 81.16     Sec. 4.  [JOINT PLANNING DISTRICT.] 
 81.17     Under the joint exercise of powers provisions in Minnesota 
 81.18  Statutes, section 471.59, a county, city, or town may establish 
 81.19  a joint planning district with other counties, cities, and towns 
 81.20  that are geographically contiguous to adopt a single 
 81.21  comprehensive plan for the district.  A county, city, or town 
 81.22  may delegate its authority to adopt official controls to the 
 81.23  board of the joint planning district. 
 81.24     Sec. 5.  [COUNTY OR JOINT PLANNING DISTRICT PLAN 
 81.25  REQUIREMENTS.] 
 81.26     Subdivision 1.  [ELECTION TO PARTICIPATE.] If the governing 
 81.27  body of a county or joint planning district elects to 
 81.28  participate in planning under this article, it must prepare and 
 81.29  adopt a comprehensive plan that meets the requirements of this 
 81.30  section, in addition to any other requirements in law. 
 81.31     Subd. 2.  [GENERAL.] The governing body shall prepare and 
 81.32  submit to the office for review and comment a comprehensive plan 
 81.33  and official controls to implement the plan. 
 81.34     Subd. 3.  [GOALS; PLAN INCORPORATION.] The plan must 
 81.35  address the goals and incorporate the comprehensive municipal 
 81.36  plan for each city and town in the county or district. 
 82.1      Subd. 4.  [RURAL DENSITIES.] The plan must ensure that land 
 82.2   outside an urban growth area is zoned as permanent rural or 
 82.3   agricultural land, developed at a density of no more than one 
 82.4   dwelling unit in 40 acres, unless clauses (1), (2), and (3) 
 82.5   apply: 
 82.6      (1) under the county's or the district's land evaluation 
 82.7   site assessment system factors, the land is not suitable for 
 82.8   permanent rural or agricultural zoning; 
 82.9      (2) the potentially affected school districts have 
 82.10  submitted written comments concerning the operating and capital 
 82.11  costs that they may incur over the next 20 to 40 years if the 
 82.12  land is developed at a higher density and the governing body has 
 82.13  considered the comments; and 
 82.14     (3) the governing body and the office find that the 
 82.15  exception is consistent with the goals. 
 82.16     Subd. 5.  [TIME FRAME.] The governing body shall submit the 
 82.17  plan to the office within 30 months of being selected to 
 82.18  participate in the pilot project. 
 82.19     Subd. 6.  [UPDATE OF EXISTING PLANS.] If the county has a 
 82.20  previously adopted plan, the governing body shall review, 
 82.21  update, and submit to the office a revised plan and official 
 82.22  controls meeting the requirements of this article, including the 
 82.23  comprehensive municipal plan for each city and town in the 
 82.24  county or district, within 30 months of being selected as a 
 82.25  pilot project under this article. 
 82.26     Subd. 7.  [PERIODIC REVIEW AND UPDATE.] The governing body 
 82.27  shall review and update the comprehensive plan periodically, but 
 82.28  at least every ten years, and submit it to the office for review 
 82.29  and comment.  The updated plan must meet the same requirements 
 82.30  as initial plans under this section.  
 82.31     Subd. 8.  [GOVERNING BODY RESPONSE.] The governing body 
 82.32  shall respond to any comments of the office that state that the 
 82.33  plan does not address the goals and justify or change the plan 
 82.34  provisions in question within 60 days of receipt of the office's 
 82.35  comments. 
 82.36     Subd. 9.  [ADJACENT COUNTIES; REVIEW AND COMMENT.] The 
 83.1   governing body shall submit its proposed comprehensive plan to 
 83.2   adjacent counties for review and comment at least six months 
 83.3   before submitting the plan to the office.  The governing body 
 83.4   shall resubmit its proposed plan to adjacent counties at the 
 83.5   same time it submits the plan to the office. 
 83.6      Subd. 10.  [METROPOLITAN COUNCIL; REVIEW AND COMMENT.] The 
 83.7   governing body of a county or district adjacent to the 
 83.8   metropolitan area shall submit its proposed comprehensive plan 
 83.9   to the metropolitan council for review and comment at least six 
 83.10  months before submitting the plan to the office.  The governing 
 83.11  body shall resubmit its proposed plan to the metropolitan 
 83.12  council at the same time it submits the plan to the office. 
 83.13     Subd. 11.  [PLAN ADOPTION.] Within 30 days of receiving the 
 83.14  office's comments or submitting the governing body's response to 
 83.15  the comments, whichever is later, the governing body shall adopt 
 83.16  and implement the plan. 
 83.17     Subd. 12.  [LIMITATION ON PLAN AMENDMENT.] The governing 
 83.18  body shall not amend its plan for an area inside an urban growth 
 83.19  area that is outside the city's jurisdiction without the city's 
 83.20  approval. 
 83.21     Subd. 13.  [PLANNING FOR TOWNS.] If the governing body of a 
 83.22  town does not prepare and adopt for the town a comprehensive 
 83.23  plan and official controls consistent with the plan, the county 
 83.24  or district governing body shall do so.  A county or district 
 83.25  may not require reimbursement of expenses by the town for 
 83.26  planning. 
 83.27     Subd. 14.  [COUNTY TO PREPARE PLAN.] If a city in a county 
 83.28  or joint planning district does not prepare a comprehensive 
 83.29  municipal plan under section 6, the county or district shall 
 83.30  prepare a plan for the city that shall be incorporated into the 
 83.31  county's or district's plan.  The city shall adopt the plan as 
 83.32  provided in section 6, subdivision 6. 
 83.33     Sec. 6.  [CITY PLANNING REQUIREMENTS.] 
 83.34     Subdivision 1.  [URBAN GROWTH AREA.] (a) The comprehensive 
 83.35  municipal plan for a city and official controls to implement the 
 83.36  plan must address the goals and establish an urban growth area 
 84.1   for the urbanized and urbanizing area.  
 84.2      (b) Within the urban growth area, the plan must provide for 
 84.3   the staged provision of urban services, including, but not 
 84.4   limited to, water, wastewater collection and treatment, and 
 84.5   transportation.  
 84.6      (c) Outside the urban growth area, the plan must not 
 84.7   provide urban services and the land must be maintained as 
 84.8   permanent rural or agricultural land, developed at a density of 
 84.9   not more than one dwelling unit in 40 acres, unless clauses (1), 
 84.10  (2), and (3) apply: 
 84.11     (1) under the county's or joint planning district's land 
 84.12  evaluation site assessment system factors, the land is not 
 84.13  suitable for permanent rural or agricultural zoning; 
 84.14     (2) the potentially affected school districts have 
 84.15  submitted written comments concerning the operating and capital 
 84.16  costs that they may incur over the next 20 to 40 years if the 
 84.17  land is developed at a higher density and the city has 
 84.18  considered the comments; and 
 84.19     (3) the county or district and the office find that the 
 84.20  exception is consistent with the goals. 
 84.21     (d) A comprehensive municipal plan meeting the requirements 
 84.22  of this subdivision must be prepared within two years of the 
 84.23  county or district being selected as a pilot project under this 
 84.24  article. 
 84.25     Subd. 2.  [URBAN GROWTH AREA PROCESS.] (a) A city that 
 84.26  develops an urban growth area beyond its current corporate 
 84.27  boundaries in an unincorporated area as part of its 
 84.28  comprehensive municipal plan shall include in the plan a 
 84.29  boundary adjustment staging plan.  The plan must establish a 
 84.30  time schedule, over the subsequent 20-year period, for the 
 84.31  boundary adjustment of the unincorporated area located between 
 84.32  the urban growth area designated in the plan and the city's 
 84.33  existing corporate limits.  The boundary adjustment staging plan 
 84.34  must be negotiated as part of the comprehensive planning process 
 84.35  with the county or district and the townships with 
 84.36  unincorporated areas located within the designated urban growth 
 85.1   area. 
 85.2      (b) After a city's comprehensive municipal plan is approved 
 85.3   under this section, the boundary adjustment staging plan 
 85.4   approved as part of the comprehensive plan must be filed with 
 85.5   the Minnesota municipal board. 
 85.6      (c) When a comprehensive municipal plan is updated, the 
 85.7   boundary adjustment staging plan included in the plan must be 
 85.8   adjusted accordingly and refiled with the Minnesota municipal 
 85.9   board.  A refiled boundary adjustment staging plan supersedes a 
 85.10  previously filed staging plan. 
 85.11     Subd. 3.  [ADJACENT CITIES; REVIEW AND COMMENT.] At least 
 85.12  six months before a comprehensive municipal plan is incorporated 
 85.13  into the county's or district's plan under section 5, the city 
 85.14  must submit its proposed comprehensive municipal plan to 
 85.15  adjacent cities for review and comment.  The city must resubmit 
 85.16  its plan to adjacent cities at the same time it submits the plan 
 85.17  to the county or district for incorporation into the county or 
 85.18  district plan. 
 85.19     Subd. 4.  [COUNTY OR DISTRICT APPROVAL.] If a city plans 
 85.20  for growth beyond its current boundaries, the city's proposed 
 85.21  comprehensive municipal plan and proposed urban growth area must 
 85.22  be reviewed and approved by the county or the district before 
 85.23  the plan is incorporated into the county's or district's plan. 
 85.24     Subd. 5.  [APPROVAL PROCESS; CONFLICT RESOLUTION.] (a) Upon 
 85.25  receipt by the county or district of a comprehensive municipal 
 85.26  plan submitted by a city for review and approval under 
 85.27  subdivision 4, the county or district shall, within 30 days of 
 85.28  receipt of a city plan, review and approve the plan in 
 85.29  accordance with this subdivision.  The county or district shall 
 85.30  approve the city plan if it addresses the goals. 
 85.31     (b) If the county or district approves the city plan, the 
 85.32  county or district shall, within 15 days of approval, submit the 
 85.33  city's plan, along with a resolution of the county or district 
 85.34  board approving the city plan and incorporating the city plan by 
 85.35  reference into the county or district comprehensive plan, to the 
 85.36  office for final review and comment under subdivision 6.  The 
 86.1   city shall adopt the plan as provided in subdivision 6. 
 86.2      (c) If the county or district does not approve the city's 
 86.3   plan, it shall notify the city within five days of the decision, 
 86.4   stating the reasons for disapproval and what is needed for the 
 86.5   plan to address the goals.  The city may amend the plan and 
 86.6   resubmit the plan to the county or district.  The county or 
 86.7   district has an additional 30 days to review and approve a 
 86.8   resubmitted plan.  The city may challenge any decision of the 
 86.9   county or district at any point by filing a written request for 
 86.10  mediation of the dispute with the county or district.  Within 30 
 86.11  days of filing the request, the city and county or district 
 86.12  shall submit to mediation facilitated by the office for a period 
 86.13  of 30 days. 
 86.14     (d) If the dispute remains unresolved after mediation, the 
 86.15  city may appeal the decision by filing a contested case with the 
 86.16  office of administrative hearings under Minnesota Statutes, 
 86.17  chapter 14.  The office of administrative hearings shall 
 86.18  schedule the matter for hearing within 30 to 60 days of receipt 
 86.19  of a request for review.  The administrative law judge shall 
 86.20  consider the decision of the county or district, considering the 
 86.21  goals and the following factors with respect to the 
 86.22  reasonableness of the designated urban growth area established 
 86.23  in the plan that has been objected to by the county or district: 
 86.24     (1) the present population and population trends for the 
 86.25  county, city, and area within the designated urban growth area; 
 86.26     (2) the present pattern of physical development in the city 
 86.27  and the area within the designated urban growth; 
 86.28     (3) the reasonableness of past and projected building 
 86.29  permit trends and any projected or pending development proposals 
 86.30  in the city or the area within the designated urban growth area; 
 86.31     (4) the present sewer, water, and transportation 
 86.32  infrastructure capacity in the city; 
 86.33     (5) the available developable land remaining within 
 86.34  corporate boundaries taking into consideration wetlands, 
 86.35  forested areas, lakes, streams, rivers, bluffs, bogs, parks and 
 86.36  open space areas, soil conditions, and slope conditions; 
 87.1      (6) the reasonableness of the projected 20-year supply of 
 87.2   land; 
 87.3      (7) fiscal data, including, but not limited to, tax 
 87.4   capacity information, service delivery information, and state 
 87.5   aids; and 
 87.6      (8) the adequacy of existing governmental services in the 
 87.7   area within the designated urban growth area. 
 87.8      (e) Any party may present evidence and testimony on any of 
 87.9   the above factors or goals to the administrative law judge.  The 
 87.10  administrative law judge, after a hearing on the matter, shall 
 87.11  make a decision regarding the dispute.  If the city's 
 87.12  comprehensive municipal plan addresses the goals and the 
 87.13  administrative law judge finds that the city's projected 
 87.14  estimates found in its comprehensive plan are reasonable with 
 87.15  respect to the urban growth area, the administrative law judge 
 87.16  shall order approval of the city plan. 
 87.17     (f) The administrative law judge shall make a decision 
 87.18  within 60 days of hearing the matter and transmit the order to 
 87.19  the city, county or district, and office.  If the order is to 
 87.20  approve the comprehensive plan, the order must contain notice 
 87.21  directing the county or district to approve the city plan within 
 87.22  ten days of receipt of the administrative law judge's order.  
 87.23  The city shall thereafter adopt the comprehensive plan pursuant 
 87.24  to subdivision 6. 
 87.25     (g) If the order is not to approve the city's comprehensive 
 87.26  municipal plan, the administrative law judge shall state the 
 87.27  reasons for the denial in the order and transmit the order to 
 87.28  the city, county or district, and office.  The city shall, 
 87.29  within 30 days of receipt of the order, amend its comprehensive 
 87.30  plan and resubmit the plan to the county or district for review 
 87.31  and approval pursuant to this subdivision.  The county or 
 87.32  district shall not unreasonably withhold approval of the plan if 
 87.33  the resubmitted city plan is in keeping with the administrative 
 87.34  law judge's order. 
 87.35     (h) Any party may appeal an order of the administrative law 
 87.36  judge to the court of appeals. 
 88.1      Subd. 6.  [PLAN ADOPTION.] The city shall adopt and 
 88.2   implement the comprehensive municipal plan after the office has 
 88.3   reviewed and commented on the county's or district's plan that 
 88.4   incorporates the city's plan.  The office shall notify the city 
 88.5   and the county or district that it has reviewed the plan and 
 88.6   provide the city and the county or district any comments on the 
 88.7   city's plan within 30 days of receiving the plan.  After receipt 
 88.8   of the notice and any comments from the office, the city shall 
 88.9   adopt the plan within 30 days. 
 88.10     Sec. 7.  [COMPREHENSIVE PLAN REVIEW AND COMMENT.] 
 88.11     The office shall review and comment on each county's or 
 88.12  joint planning district's comprehensive plan submitted to the 
 88.13  office.  The office shall review each plan to determine if it 
 88.14  addresses the goals.  The office shall complete its review and 
 88.15  comment within 60 days of receipt of the plan. 
 88.16                             ARTICLE 4 
 88.17                          MUNICIPAL BOARD 
 88.18     Section 1.  Minnesota Statutes 1996, section 115.49, is 
 88.19  amended by adding a subdivision to read: 
 88.20     Subd. 2a.  [ANNEXATION ALTERNATIVE.] If the pollution 
 88.21  control agency determines or orders under this section that 
 88.22  cooperation by contract is necessary and feasible between a 
 88.23  municipality and an unincorporated area located outside the 
 88.24  existing corporate limits of a municipality, the municipality 
 88.25  may declare the unincorporated area as described in the 
 88.26  pollution control agency's determination letter or order annexed 
 88.27  to the municipality under section 414.0335, as an alternative to 
 88.28  formulating a service contract to provide or extend the 
 88.29  service.  The municipality must declare the annexation within 
 88.30  the 90-day period provided under this section for formulating a 
 88.31  contract.  
 88.32     Sec. 2.  Minnesota Statutes 1996, section 414.0325, 
 88.33  subdivision 1, is amended to read: 
 88.34     Subdivision 1.  [INITIATING THE PROCEEDING.] One or more 
 88.35  townships and one or more municipalities, by joint resolution, 
 88.36  may designate an unincorporated area as in need of orderly 
 89.1   annexation.  The joint resolution will confer jurisdiction on 
 89.2   the board over annexations in the designated area and over the 
 89.3   various provisions in said agreement by submission of said joint 
 89.4   resolution to the executive director.  The resolution shall 
 89.5   include a description of the designated area and the reasons for 
 89.6   designation.  Thereafter, an annexation of any part of the 
 89.7   designated area may be initiated by: 
 89.8      (1) submitting to the executive director a resolution of 
 89.9   any signatory to the joint resolution; or 
 89.10     (2) the board of its own motion; or 
 89.11     (3) as provided in section 414.033, subdivision 2a. 
 89.12     Whenever the pollution control agency or other a state 
 89.13  agency pursuant to sections 115.03, 115.071, 115.49, or any law 
 89.14  giving a state agency similar powers other than the pollution 
 89.15  control agency, orders a municipality to extend a municipal 
 89.16  service to an area, such an order will confer jurisdiction on 
 89.17  the Minnesota municipal board to consider designation of the 
 89.18  area for orderly annexation. 
 89.19     If a joint resolution designates an area as in need of 
 89.20  orderly annexation and states that no alteration of its stated 
 89.21  boundaries is appropriate, the board may review and comment, but 
 89.22  may not alter the boundaries.  
 89.23     If a joint resolution designates an area as in need of 
 89.24  orderly annexation, provides for the conditions for its 
 89.25  annexation, and states that no consideration by the board is 
 89.26  necessary, the board may review and comment, but shall, within 
 89.27  30 days, order the annexation in accordance with the terms of 
 89.28  the resolution.  
 89.29     Sec. 3.  Minnesota Statutes 1996, section 414.033, 
 89.30  subdivision 2b, is amended to read: 
 89.31     Subd. 2b.  [NOTICE REQUIRED.] Before a municipality may 
 89.32  adopt an ordinance under subdivision 2, clause (2), (3), or (4), 
 89.33  or subdivision 2a, a municipality must hold a public hearing and 
 89.34  give 30 days' written notice by certified mail to the town or 
 89.35  towns affected by the proposed ordinance and to all landowners 
 89.36  within and contiguous to the area to be annexed.  
 90.1      Sec. 4.  Minnesota Statutes 1996, section 414.033, 
 90.2   subdivision 11, is amended to read: 
 90.3      Subd. 11.  [FLOODPLAIN; SHORELAND AREA.] When a 
 90.4   municipality declares land annexed to the municipality under 
 90.5   subdivision 2, clause (3), or subdivision 2a, and the land is 
 90.6   within a designated floodplain, as provided by section 103F.111, 
 90.7   subdivision 4, or a shoreland area, as provided by section 
 90.8   103F.205, subdivision 4, the municipality shall adopt or amend 
 90.9   its land use controls to conform to chapter 103F, and any new 
 90.10  development of the annexed land shall be subject to chapter 103F.
 90.11     Sec. 5.  Minnesota Statutes 1996, section 414.033, 
 90.12  subdivision 12, is amended to read: 
 90.13     Subd. 12.  [PROPERTY TAXES.] When a municipality annexes 
 90.14  land under subdivision 2, clause (2), (3), or (4), or 
 90.15  subdivision 2a, property taxes payable on the annexed land shall 
 90.16  continue to be paid to the affected town or towns for the year 
 90.17  in which the annexation becomes effective.  Thereafter, property 
 90.18  taxes on the annexed land shall be paid to the municipality.  In 
 90.19  the first year following the year the land was annexed, the 
 90.20  municipality shall make a cash payment to the affected town or 
 90.21  towns in an amount equal to 90 percent of the property taxes 
 90.22  paid in the year the land was annexed; in the second year, an 
 90.23  amount equal to 70 percent of the property taxes paid in the 
 90.24  year the land was annexed; in the third year, an amount equal to 
 90.25  50 percent of the property taxes paid in the year the land was 
 90.26  annexed; in the fourth year, an amount equal to 30 percent of 
 90.27  the property taxes paid in the year the land was annexed; and in 
 90.28  the fifth year, an amount equal to ten percent of the property 
 90.29  taxes paid in the year the land was annexed.  The municipality 
 90.30  and the affected township may agree to a different payment. 
 90.31     Sec. 6.  [414.0335] [ORDERED GOVERNMENTAL SERVICE 
 90.32  EXTENSION; ANNEXATION BY ORDINANCE.] 
 90.33     If the pollution control agency determines or orders, under 
 90.34  section 115.49 or other similar statute, that cooperation by 
 90.35  contract is necessary and feasible between a municipality and an 
 90.36  unincorporated area located outside the existing corporate 
 91.1   limits of a municipality, the municipality may declare the 
 91.2   unincorporated area described in the pollution control agency's 
 91.3   determination letter or order annexed to the municipality, as an 
 91.4   alternative to formulating a service contract to provide or 
 91.5   extend the service.  The municipality must adopt an ordinance 
 91.6   for annexation and submit it to the municipal board within the 
 91.7   90-day period provided under section 115.49 to formulate a 
 91.8   contract.  The municipal board may review and comment on the 
 91.9   ordinance but shall approve the ordinance within 30 days of 
 91.10  receipt.  The ordinance is final and the annexation is effective 
 91.11  on the date the municipal board approves the ordinance.  
 91.12  Thereafter, the city shall amend its comprehensive plan and 
 91.13  official controls in accordance with section 462.3535. 
 91.14     Sec. 7.  [414.10] [ALTERNATIVE PROCESS OF DISPUTE 
 91.15  RESOLUTION.] 
 91.16     Subdivision 1.  [DEFINITION.] For the purposes of 
 91.17  subdivision 2, a "party" means a property owner or the governing 
 91.18  body or town board of a jurisdiction that files an initiating 
 91.19  document or a timely objection, and the governing body or town 
 91.20  board of the jurisdiction or jurisdictions in which the subject 
 91.21  area is located. 
 91.22     Subd. 2.  [CHAPTER 572A PROCESS.] As an alternative to the 
 91.23  procedure provided by this chapter, a party filing an initiating 
 91.24  document or timely objection may file with the bureau of 
 91.25  mediation services a written request for mediation within 30 
 91.26  days of the filing as provided in section 572A.015.  The request 
 91.27  for mediation must contain the written consent of all parties to 
 91.28  have the dispute settled through the process provided by chapter 
 91.29  572A.  The filing party must also file written notice with the 
 91.30  municipal board notifying the board that all parties have agreed 
 91.31  to use the dispute resolution process in chapter 572A. 
 91.32     Sec. 8.  [414.11] [MUNICIPAL BOARD SUNSET; TRANSFER.] 
 91.33     The municipal board shall terminate on December 31, 1999, 
 91.34  and all of its authority and duties under this chapter shall be 
 91.35  transferred to the office of strategic and long-range planning 
 91.36  according to section 15.039. 
 92.1      Sec. 9.  [REPEALER.] 
 92.2      Minnesota Statutes 1996, section 414.033, subdivision 2a, 
 92.3   is repealed. 
 92.4      Sec. 10.  [EFFECTIVE DATE.] 
 92.5      This article is effective the day following final enactment.
 92.6                              ARTICLE 5 
 92.7                          DISPUTE RESOLUTION 
 92.8      Section 1.  [572A.01] [COMPREHENSIVE PLANNING DISPUTES; 
 92.9   MEDIATION.] 
 92.10     Subdivision 1.  [FILING.] In the event of a dispute between 
 92.11  a county and the office of strategic and long-range planning 
 92.12  under section 394.232 or a county and a city under section 
 92.13  462.3535, regarding the development, content, or approval of a 
 92.14  community-based comprehensive land use plan, an aggrieved party 
 92.15  may file a written request for mediation, as provided in 
 92.16  subdivision 2, with the office of strategic and long-range 
 92.17  planning at any time prior to a final action on a 
 92.18  community-based comprehensive plan or within 30 days of a final 
 92.19  action on a community-based comprehensive plan. 
 92.20     Subd. 2.  [MEDIATION.] Within ten days of receiving a 
 92.21  request for mediation in subdivision 1, the office of strategic 
 92.22  and long-range planning shall provide written notice of the 
 92.23  request for mediation to the parties.  Within 30 days 
 92.24  thereafter, the affected parties shall submit to mediation for a 
 92.25  period of 30 days facilitated by the office.  If the dispute 
 92.26  remains unresolved after the close of the 30-day mediation 
 92.27  period, the office shall prepare a report of its recommendations 
 92.28  and transmit the report within 30 days to the parties.  Within 
 92.29  60 days after the date of issuance of the mediator's report, the 
 92.30  dispute shall be submitted to binding arbitration as provided in 
 92.31  this chapter.  The mediator's report submitted to the parties is 
 92.32  informational only and is not admissible in arbitration. 
 92.33     Sec. 2.  [572A.015] [CHAPTER 414 DISPUTES; MEDIATION.] 
 92.34     Subdivision 1.  [FILING.] As provided by section 414.10, if 
 92.35  an initiating document or timely objection under chapter 414 is 
 92.36  filed with the municipal board, the filing party, jurisdiction, 
 93.1   or jurisdictions may also file a written request for mediation 
 93.2   with the bureau of mediation services within 30 days of the 
 93.3   initiating document or timely objection.  The request for 
 93.4   mediation must contain the written consent to the mediation and 
 93.5   arbitration process by all the parties, as defined in section 
 93.6   414.10, subdivision 1. 
 93.7      Subd. 2.  [MEDIATION.] Within ten days of receiving a 
 93.8   request for mediation, the bureau shall provide written notice 
 93.9   of the request for mediation to the parties.  Within 30 days 
 93.10  thereafter, the affected parties, as defined in section 414.10, 
 93.11  subdivision 1, shall submit to mediation for a period of 30 days 
 93.12  facilitated by the bureau.  If the dispute remains unresolved 
 93.13  after the close of the 30-day mediation period, the bureau shall 
 93.14  prepare a report of its recommendations and transmit the report 
 93.15  within 30 days to the parties.  Within 60 days after the date of 
 93.16  issuance of the mediator's report, the dispute shall be 
 93.17  submitted to binding arbitration as provided in this chapter.  
 93.18  The mediator's report submitted to the parties is informational 
 93.19  only and is not admissible in arbitration. 
 93.20     Sec. 3.  [572A.02] [ARBITRATION.] 
 93.21     Subdivision 1.  [SUBMITTAL TO BINDING ARBITRATION.] If a 
 93.22  dispute remains unresolved after the close of mediation, the 
 93.23  dispute shall be submitted to binding arbitration within 60 days 
 93.24  of issuance of the mediation report pursuant to the terms of 
 93.25  this section and the Uniform Arbitration Act, sections 572.08 to 
 93.26  572.30, except the period may be extended for an additional 15 
 93.27  days as provided in this section.  In the event of a conflict 
 93.28  between the provisions of the Uniform Arbitration Act and this 
 93.29  section, this section controls. 
 93.30     Subd. 2.  [APPOINTMENT OF PANEL.] (a) The parties shall 
 93.31  each appoint one qualified arbitrator within 30 days of issuance 
 93.32  of the mediation report.  If a party does not appoint an 
 93.33  arbitrator within 30 days, the office of strategic and 
 93.34  long-range planning for disputes under section 572A.01 or the 
 93.35  bureau of mediation services for disputes under section 
 93.36  572A.015, shall appoint a qualified arbitrator for the party.  
 94.1   The parties shall notify the office prior to the close of the 
 94.2   30-day appointment period of the name and address of their 
 94.3   respective appointed arbitrator.  Each party is responsible for 
 94.4   the fees and expenses for the arbitrator it selects.  
 94.5      (b) After appointment of the two arbitrators to the 
 94.6   arbitration panel by the parties, or by the office or bureau 
 94.7   should one or both of the parties fail to act, the two appointed 
 94.8   arbitrators shall appoint a third arbitrator, who must be 
 94.9   learned in the law, within 15 days of the close of the initial 
 94.10  30-day arbitrator appointment period.  If the arbitrators cannot 
 94.11  agree on the selection of the third arbitrator within 15 days, 
 94.12  the arbitrators shall jointly submit a request to the district 
 94.13  court of the county in which the disputed area is located in 
 94.14  accordance with the selection procedures established in section 
 94.15  572.10.  Within 15 days of receipt of an application by the 
 94.16  district court, the district court shall select a neutral 
 94.17  arbitrator and notify the parties and the office of strategic 
 94.18  and long-range planning or bureau of mediation services of the 
 94.19  name and address of the selected arbitrator.  The fees and 
 94.20  expenses of the third arbitrator shall be shared equally by the 
 94.21  parties.  The third appointed arbitrator shall act as chair of 
 94.22  the arbitration panel and shall conduct the proceedings.  If the 
 94.23  district court selects the third arbitrator, the date required 
 94.24  for first hearing the matter may be extended an additional 15 
 94.25  days. 
 94.26     Subd. 3.  [HEARING.] Except as otherwise provided, the 
 94.27  matter must be brought on for hearing in accordance with section 
 94.28  572.12 within 60 days.  The office of strategic and long-range 
 94.29  planning or bureau of mediation services shall provide for the 
 94.30  proceedings to occur in the county in which the majority of the 
 94.31  affected property is located. 
 94.32     Subd. 4.  [CONTRACTS; INFORMATION.] The arbitration panel 
 94.33  shall have authority to contract with regional, state, county, 
 94.34  or local planning commissions or to hire expert consultants to 
 94.35  provide specialized information and assistance.  Any member of 
 94.36  the panel conducting or participating in any hearing shall have 
 95.1   the power to administer oaths and affirmations, to issue 
 95.2   subpoenas, to compel the attendance and testimony of witnesses, 
 95.3   and to compel the production of papers, books, and documents.  
 95.4   Any costs related to this subdivision shall be shared equally by 
 95.5   the parties. 
 95.6      Subd. 5.  [DECISION FACTORS.] (a) In comprehensive planning 
 95.7   disputes, the arbitration panel shall consider the goals stated 
 95.8   in section 4A.08 and the factors in clauses (1) to (14) in 
 95.9   making a decision.  In all other disputes brought under this 
 95.10  section, the arbitration panel shall consider the following 
 95.11  factors in making a decision: 
 95.12     (1) the present population and number of households, past 
 95.13  population, and projected population growth of the subject area 
 95.14  and adjacent units of local government; 
 95.15     (2) the quantity of land within the subject area and 
 95.16  adjacent units of local government, and the natural terrain, 
 95.17  including recognizable physical features, general topography, 
 95.18  major watersheds, soil conditions, and natural features such as 
 95.19  rivers, lakes, and major bluffs; 
 95.20     (3) the degree of contiguity of the boundaries between the 
 95.21  annexing municipality and the subject area; 
 95.22     (4) the present pattern of physical development, planning, 
 95.23  and intended land uses in the subject area and the annexing 
 95.24  municipality, including residential, industrial, commercial, 
 95.25  agricultural, and institutional land uses, and the impact of the 
 95.26  proposed action on those land uses; 
 95.27     (5) the present transportation network and potential 
 95.28  transportation issues, including proposed highway development; 
 95.29     (6) land use controls and planning presently being utilized 
 95.30  in the annexing municipality and the subject area, including 
 95.31  comprehensive plans for development in the area and plans and 
 95.32  policies of the metropolitan council, whether there are 
 95.33  inconsistencies between proposed development and existing land 
 95.34  use controls, and the reasons therefore; 
 95.35     (7) existing levels of governmental services being provided 
 95.36  in the annexing municipality and the subject area, including 
 96.1   water and sewer service, fire rating and protection, law 
 96.2   enforcement, street improvements and maintenance, administrative 
 96.3   services, and recreational facilities, and the impact of the 
 96.4   proposed action on the delivery of said services; 
 96.5      (8) existing or potential environmental problems and 
 96.6   whether the proposed action is likely to improve or resolve the 
 96.7   problems; 
 96.8      (9) plans and programs by the annexing municipality for 
 96.9   providing needed governmental services to the subject area; 
 96.10     (10) an analysis of the fiscal impact on the annexing 
 96.11  municipality, the subject area, and adjacent units of local 
 96.12  government, including net tax capacity and the present bonded 
 96.13  indebtedness, and the local tax rates of the county, school 
 96.14  district, and township; 
 96.15     (11) the relationship and effect of the proposed action on 
 96.16  affected and adjacent school districts and communities; 
 96.17     (12) the adequacy of town government to deliver services to 
 96.18  the subject area; 
 96.19     (13) an analysis of whether necessary governmental services 
 96.20  can best be provided through the proposed action or another type 
 96.21  of boundary adjustment; and 
 96.22     (14) if only a part of a township is annexed, the ability 
 96.23  of the remainder of the township to continue or the feasibility 
 96.24  of it being incorporated separately or being annexed to another 
 96.25  municipality. 
 96.26     (b) Any party to the proceeding may present evidence and 
 96.27  testimony on any of the above factors at the hearing on the 
 96.28  matter. 
 96.29     Subd. 6.  [DECISION.] The arbitrators, after a hearing on 
 96.30  the matter, shall make a decision regarding the dispute within 
 96.31  60 days and transmit an order to the parties and the office of 
 96.32  strategic and long-range planning or the municipal board.  
 96.33  Unless appealed within 30 days of receipt of the arbitration 
 96.34  panel's order by the municipal board, the municipal board shall 
 96.35  execute an order in accordance with the arbitration panel's 
 96.36  order and shall cause copies of the same to be mailed to all 
 97.1   parties entitled to mailed notice, the secretary of state, the 
 97.2   department of revenue, the state demographer, individual 
 97.3   property owners if initiated in that manner, the affected county 
 97.4   auditor, and any other party of record.  The affected county 
 97.5   auditor shall record the order against the affected property. 
 97.6      Sec. 4.  [572A.03] [ARBITRATION PANEL DECISION STANDARDS.] 
 97.7      Subdivision 1.  [DECISION STANDARDS.] The arbitration 
 97.8   panel, based upon the factors in section 572A.02, subdivision 5, 
 97.9   shall decide the matter based upon the decision standards in 
 97.10  subdivisions 2 to 6.  
 97.11     Subd. 2.  [COMPREHENSIVE LAND USE PLANNING.] (a) For 
 97.12  comprehensive land use planning disputes under section 462.3535, 
 97.13  if a community-based comprehensive plan addresses the goals of 
 97.14  section 4A.08 and the arbitrators find that the city's projected 
 97.15  estimates found in its comprehensive plan are reasonable with 
 97.16  respect to an identified urban growth area, the arbitration 
 97.17  panel may order approval of the city plan.  
 97.18     (b) If the order is to approve the community-based 
 97.19  comprehensive plan, the order shall contain notice directing the 
 97.20  county to approve the city plan within ten days of receipt of 
 97.21  the arbitration order.  The city shall thereafter adopt the plan.
 97.22     (c) If the order is to deny the plan, the arbitration order 
 97.23  shall state the reasons for the denial in the order and transmit 
 97.24  the order to the city, county, and the office of strategic and 
 97.25  long-range planning.  The city shall within 30 days of receipt 
 97.26  of the order amend its plan and resubmit the plan to the county 
 97.27  for review and approval under this subdivision.  
 97.28     (d) The county shall not unreasonably withhold approval of 
 97.29  the plan if the resubmitted city plan is in keeping with the 
 97.30  arbitration panel's order. 
 97.31     Subd. 3.  [MUNICIPAL INCORPORATIONS.] (a) For municipal 
 97.32  incorporations under section 414.02, the arbitration panel may 
 97.33  order the incorporation if it finds that:  
 97.34     (1) the property to be incorporated is, or is about to 
 97.35  become, urban or suburban in character; 
 97.36     (2) the existing township form of government is not 
 98.1   adequate to protect the public health, safety, and welfare; or 
 98.2      (3) the proposed incorporation would be in the best 
 98.3   interests of the area under consideration.  
 98.4      (b) The panel may deny the incorporation if the area, or a 
 98.5   part of it, is better served by annexation to an adjacent 
 98.6   municipality.  
 98.7      (c) The panel may alter the boundaries of the proposed 
 98.8   incorporation by increasing or decreasing the area to be 
 98.9   incorporated so as to include only that property that is, or is 
 98.10  about to become, urban or suburban in character, or may exclude 
 98.11  property that is better served by another unit of government.  
 98.12  The panel may alter the boundaries of the proposed incorporation 
 98.13  to follow visible, clearly recognizable physical features for 
 98.14  municipal boundaries.  
 98.15     (d) In all cases, the panel shall set forth the factors 
 98.16  which are the basis for its decision.  
 98.17     Subd. 4.  [ANNEXATIONS OF UNINCORPORATED PROPERTY.] (a) For 
 98.18  annexations of unincorporated property under section 414.031 or 
 98.19  414.033, subdivisions 3 and 5, the arbitration panel may order 
 98.20  the annexation if it finds that:  
 98.21     (1) the subject area is, or is about to become, urban or 
 98.22  suburban in character; 
 98.23     (2) municipal government in the area proposed for 
 98.24  annexation is required to protect the public health, safety, and 
 98.25  welfare; or 
 98.26     (3) the annexation is in the best interests of the subject 
 98.27  area.  
 98.28     (b) If only a part of a township is to be annexed, the 
 98.29  panel shall consider whether the remainder of the township can 
 98.30  continue to carry on the functions of government without undue 
 98.31  hardship.  
 98.32     (c) The panel shall deny the annexation if it finds that 
 98.33  the increase in revenues for the annexing municipality bears no 
 98.34  reasonable relation to the monetary value of benefits conferred 
 98.35  upon the annexed area.  The panel may deny the annexation if:  
 98.36     (1) it appears that annexation of all or a part of the 
 99.1   property to an adjacent municipality better serves the interests 
 99.2   of the residents of the property; or 
 99.3      (2) the remainder of the township would suffer undue 
 99.4   hardship. 
 99.5      (d) The panel may alter the boundaries of the area to be 
 99.6   annexed by increasing or decreasing the area so as to include 
 99.7   only that property that is or is about to become urban or 
 99.8   suburban in character or to add property of that character 
 99.9   abutting the area proposed for annexation to preserve or improve 
 99.10  the symmetry of the area, or to exclude property that may better 
 99.11  be served by another unit of government.  The panel may alter 
 99.12  the boundaries of the proposed annexation to follow visible, 
 99.13  clearly recognizable physical features.  
 99.14     (e) If the panel determines that part of the area would be 
 99.15  better served by another municipality or township, the panel may 
 99.16  initiate and approve annexation on its own motion by conducting 
 99.17  further hearings.  
 99.18     (f) In all cases, the arbitration panel shall set forth the 
 99.19  factors that are the basis for its decision. 
 99.20     Subd. 5.  [CONSOLIDATION OF MUNICIPALITIES.] For municipal 
 99.21  consolidations under section 414.041, the arbitration panel 
 99.22  shall consider and may accept, amend, return to the commission 
 99.23  for amendment or further study, or reject the commission's 
 99.24  findings and recommendations based upon the panel's written 
 99.25  determination of what is in the best interests of the affected 
 99.26  municipalities.  The panel shall order the consolidation if it 
 99.27  finds that consolidation will be for the best interests of the 
 99.28  municipalities.  In all cases, the arbitration panel shall set 
 99.29  forth the factors that are the basis for its decision.  
 99.30     Subd. 6.  [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] (a) 
 99.31  For detachments of property from a municipality under section 
 99.32  414.06, the arbitration panel may order the detachment if it 
 99.33  finds that: 
 99.34     (1) the requisite number of property owners have signed the 
 99.35  petition if initiated by the property owners; 
 99.36     (2) the property is rural in character and not developed 
100.1   for urban residential, commercial, or industrial purposes; 
100.2      (3) the property is within the boundaries of the 
100.3   municipality and abuts a boundary; 
100.4      (4) the detachment would not unreasonably affect the 
100.5   symmetry of the detaching municipality; and 
100.6      (5) the land is not needed for reasonably anticipated 
100.7   future development.  
100.8      (b) The panel shall deny the detachment if it finds that 
100.9   the remainder of the municipality cannot continue to carry on 
100.10  the functions of government without undue hardship.  
100.11     (c) The panel shall have authority to decrease the area of 
100.12  property to be detached and may include only a part of the 
100.13  proposed area to be detached.  
100.14     (d) If the tract abuts more than one township, it shall 
100.15  become a part of each township, being divided by projecting 
100.16  through it the boundary line between the townships.  
100.17     (e) The detached area may be relieved of the primary 
100.18  responsibility for existing indebtedness of the municipality.  
100.19  The detached area may be required to assume the indebtedness of 
100.20  the township of which it becomes a part, in the proportion that 
100.21  the panel deems just and equitable, considering the amount of 
100.22  taxes due and delinquent, the indebtedness of each township and 
100.23  the municipality affected, if any, and the purpose for which the 
100.24  indebtedness was incurred, in relation to the benefit inuring to 
100.25  the detached area as a result of the indebtedness and the last 
100.26  net tax capacity of the taxable property in each township and 
100.27  municipality. 
100.28     Subd. 7.  [CONCURRENT DETACHMENT AND ANNEXATION OF 
100.29  INCORPORATED PROPERTY.] For concurrent detachment and annexation 
100.30  of incorporated property under section 414.061, subdivisions 4 
100.31  and 5, the arbitration panel shall order the proposed action if 
100.32  it finds that it is in the best interests of the municipalities 
100.33  and the property owner.  In all cases, the board shall set forth 
100.34  the factors which are the basis for the decision. 
100.35     Sec. 5.  [EFFECTIVE DATE.] 
100.36     This article is effective the day following final enactment.
101.1                              ARTICLE 6 
101.2                          PRESCRIPTION DRUGS 
101.3      Section 1.  Minnesota Statutes 1996, section 8.31, 
101.4   subdivision 1, is amended to read: 
101.5      Subdivision 1.  [INVESTIGATE OFFENSES AGAINST THE 
101.6   PROVISIONS OF CERTAIN DESIGNATED SECTIONS; ASSIST IN 
101.7   ENFORCEMENT.] The attorney general shall investigate violations 
101.8   of the law of this state respecting unfair, discriminatory, and 
101.9   other unlawful practices in business, commerce, or trade, and 
101.10  specifically, but not exclusively, unfair price discrimination 
101.11  (section 151.061), the nonprofit corporation act (sections 
101.12  317A.001 to 317A.909), the act against unfair discrimination and 
101.13  competition (sections 325D.01 to 325D.07), the unlawful trade 
101.14  practices act (sections 325D.09 to 325D.16), the antitrust act 
101.15  (sections 325D.49 to 325D.66), section 325F.67 and other laws 
101.16  against false or fraudulent advertising, the antidiscrimination 
101.17  acts contained in section 325D.67, the act against 
101.18  monopolization of food products (section 325D.68), the act 
101.19  regulating telephone advertising services (section 325E.39), the 
101.20  prevention of consumer fraud act (sections 325F.68 to 325F.70), 
101.21  and chapter 53A regulating currency exchanges and assist in the 
101.22  enforcement of those laws as in this section provided. 
101.23     Sec. 2.  [16B.93] [DEFINITIONS.] 
101.24     Subdivision 1.  [APPLICABILITY.] For purposes of sections 
101.25  16B.93 to 16B.96, the terms in this section have the meanings 
101.26  given them. 
101.27     Subd. 2.  [CONTRACTOR.] "Contractor" means an individual, 
101.28  business entity, or other private organization that is awarded a 
101.29  contract by the commissioner to negotiate and administer the 
101.30  price contracts for prescription drugs under section 16B.94, 
101.31  subdivision 2. 
101.32     Subd. 3.  [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING 
101.33  ALLIANCE OR NONGOVERNMENTAL ALLIANCE.] "Nongovernmental 
101.34  pharmaceutical contracting alliance" or "nongovernmental 
101.35  alliance" means the alliance established and administered by the 
101.36  commissioner under the authority granted in section 16B.94. 
102.1      Subd. 4.  [MANUFACTURER.] "Manufacturer" means a 
102.2   manufacturer as defined under section 151.44, paragraph (c). 
102.3      Subd. 5.  [PRESCRIPTION DRUG.] "Prescription drug" means a 
102.4   drug as defined in section 151.44, paragraph (d). 
102.5      Subd. 6.  [PURCHASER.] "Purchaser" means a pharmacy as 
102.6   defined in section 151.01, subdivision 2, including pharmacies 
102.7   operated by health maintenance organizations and hospitals. 
102.8      Subd. 7.  [SELLER.] "Seller" means a person, other than a 
102.9   manufacturer, who sells or distributes drugs to purchasers or 
102.10  other sellers within the state. 
102.11     Sec. 3.  [16B.94] [NONGOVERNMENTAL PHARMACEUTICAL 
102.12  CONTRACTING ALLIANCE.] 
102.13     Subdivision 1.  [ESTABLISHMENT AND ADMINISTRATION.] The 
102.14  commissioner, in consultation with appropriate experts on 
102.15  pharmaceutical pricing, shall establish and administer a 
102.16  nongovernmental pharmaceutical contracting alliance.  The 
102.17  nongovernmental alliance shall negotiate contracts for 
102.18  prescription drugs with manufacturers and sellers and shall make 
102.19  the contract prices negotiated available to purchasers.  The 
102.20  commissioner shall select the prescription drugs for which price 
102.21  contracts are negotiated.  The commissioner shall, to the 
102.22  greatest extent feasible, operate the alliance using the 
102.23  administrative and contracting procedures of the Minnesota 
102.24  multistate governmental contracting alliance for pharmaceuticals 
102.25  administered by the commissioner under the authority granted in 
102.26  section 471.59.  The commissioner may negotiate a price 
102.27  differential based on volume purchasing and may also grant 
102.28  multiple awards. 
102.29     Subd. 2.  [USE OF CONTRACTOR.] The commissioner may 
102.30  contract with an individual, business entity, or other private 
102.31  organization to serve as a contractor to negotiate and 
102.32  administer the price contracts for prescription drugs.  In 
102.33  developing requirements for the contractor, the commissioner 
102.34  shall consult with appropriate experts on pharmaceutical pricing.
102.35     Subd. 3.  [ADMINISTRATIVE COSTS.] The commissioner may 
102.36  charge manufacturers and sellers that enter into prescription 
103.1   drug price contracts with the commissioner under subdivision 1 a 
103.2   fee to cover the commissioner's expenses in negotiating and 
103.3   administering the price contracts.  The fee established shall 
103.4   have the force and effect of law if the requirements of section 
103.5   14.386, paragraph (a), are met.  Section 14.386, paragraph (b), 
103.6   does not apply.  Fees collected by the commissioner under this 
103.7   subdivision must be deposited in the state treasury and credited 
103.8   to a special account.  Money in the account is appropriated to 
103.9   the commissioner to pay the costs of negotiating and 
103.10  administering price contracts under this section. 
103.11     Subd. 4.  [EXPANSION TO OTHER STATES.] The commissioner may 
103.12  expand the nongovernmental alliance to other states and make the 
103.13  contract prices negotiated available to non-Minnesota purchasers.
103.14     Sec. 4.  [16B.95] [STATE CONTRACT PRICE.] 
103.15     Subdivision 1.  [MANUFACTURER AND SELLER REQUIREMENT.] A 
103.16  manufacturer or seller that contracts with the commissioner 
103.17  shall make the contract price negotiated available to all 
103.18  purchasers.  
103.19     Subd. 2.  [PURCHASER REQUIREMENT.] The commissioner shall 
103.20  require purchasers that purchase prescription drugs at the 
103.21  contract price to pass at least 75 percent of the savings 
103.22  resulting from purchases at the negotiated contract price to 
103.23  consumers.  The commissioner may require a purchaser that plans 
103.24  to purchase prescription drugs at the contract price negotiated 
103.25  by the commissioner to submit any information regarding 
103.26  prescription drug purchase projections the commissioner 
103.27  determines is necessary for contract price negotiations. 
103.28     Sec. 5.  [16B.96] [NONDISCRIMINATION.] 
103.29     A health plan company, as defined in section 62Q.01, shall 
103.30  not discriminate against a purchaser for taking advantage of the 
103.31  contract price negotiated by the commissioner. 
103.32     Sec. 6.  [62J.685] [DISCLOSURE OF PRESCRIPTION DRUG 
103.33  REBATES.] 
103.34     A health plan company or hospital licensed under chapter 
103.35  144 shall annually submit to the attorney general the total 
103.36  amount of discount or rebate received during the previous 
104.1   calendar year for aggregate purchases of prescription drugs from 
104.2   a manufacturer as defined under section 151.44, paragraph (c), 
104.3   or wholesale drug distributor as defined under section 151.44, 
104.4   paragraph (b).  Data submitted to the attorney general under 
104.5   this section are nonpublic data. 
104.6      Sec. 7.  Minnesota Statutes 1996, section 151.21, 
104.7   subdivision 2, is amended to read: 
104.8      Subd. 2.  When a pharmacist receives a written prescription 
104.9   on which the prescriber has personally written in handwriting 
104.10  "dispense as written" or "D.A.W. - brand medically necessary," 
104.11  or an oral prescription in which the prescriber has expressly 
104.12  indicated that the prescription is to be dispensed as 
104.13  communicated, the pharmacist shall dispense the brand name 
104.14  legend drug as prescribed.  If the prescriber specifies orally 
104.15  that the prescription shall be dispensed as communicated, 
104.16  written certification in the prescriber's handwriting bearing 
104.17  the phrase "dispense as written - brand medically necessary" 
104.18  must be sent to the dispensing pharmacy within ten days. 
104.19     Sec. 8.  Minnesota Statutes 1996, section 151.21, 
104.20  subdivision 3, is amended to read: 
104.21     Subd. 3.  When a pharmacist receives a written prescription 
104.22  on which the prescriber has not personally written in 
104.23  handwriting "dispense as written" or "D.A.W. - brand medically 
104.24  necessary," or an oral prescription in which the prescriber has 
104.25  not expressly indicated that the prescription is to be dispensed 
104.26  as communicated, and there is available in the pharmacist's 
104.27  stock a less expensive generically equivalent drug that, in the 
104.28  pharmacist's professional judgment, is safely interchangeable 
104.29  with the prescribed drug, then the pharmacist shall, after 
104.30  disclosing the substitution to the purchaser, dispense the 
104.31  generic drug, unless the purchaser objects.  A pharmacist may 
104.32  also substitute pursuant to the oral instructions of the 
104.33  prescriber.  A pharmacist may not substitute a generically 
104.34  equivalent drug product unless, in the pharmacist's professional 
104.35  judgment, the substituted drug is therapeutically equivalent and 
104.36  interchangeable to the prescribed drug.  A pharmacist shall 
105.1   notify the purchaser if the pharmacist is dispensing a drug 
105.2   other than the brand name drug prescribed.  
105.3      Sec. 9.  Minnesota Statutes 1996, section 151.21, is 
105.4   amended by adding a subdivision to read: 
105.5      Subd. 4a.  A pharmacy must post a sign in a conspicuous 
105.6   location and in a typeface easily seen at the counter where 
105.7   prescriptions are dispensed stating:  "In order to save you 
105.8   money, this pharmacy will substitute whenever possible an 
105.9   FDA-approved, less expensive, generic drug product, which is 
105.10  therapeutically equivalent to and safely interchangeable with 
105.11  the one prescribed by your doctor, unless you object to this 
105.12  substitution. 
105.13                             ARTICLE 7
105.14                   MINNESOTA OFFICE OF TECHNOLOGY 
105.15     Section 1.  [16B.415] [OPERATION OF INFORMATION SYSTEMS.] 
105.16     The commissioner of administration, through a division of 
105.17  technology management, is responsible for ongoing operations of 
105.18  state agency information technology activities.  These include 
105.19  records management, activities relating to the government data 
105.20  practices act, operation of MNET, and activities necessary to 
105.21  make state information systems year 2000 compliant.  The 
105.22  commissioner must carry out these duties in compliance with 
105.23  policies, standards, and practices developed under section 
105.24  237A.01. 
105.25     Sec. 2.  Minnesota Statutes 1996, section 16B.46, is 
105.26  amended to read: 
105.27     16B.46 [TELECOMMUNICATION INFORMATION AND 
105.28  TELECOMMUNICATIONS SYSTEMS; POWERS.] 
105.29     The commissioner shall supervise and control consult with 
105.30  the Minnesota office of technology in the operation of all 
105.31  centralized state information and telecommunication systems 
105.32  facilities including any transmission, emission, or reception of 
105.33  signs, signals, writing, images, and sounds or intelligence of 
105.34  any nature by wire, radio, optical, or other electromagnetic 
105.35  systems the MNET and intertechnologies facilities.  Nothing in 
105.36  this section modifies, amends, or abridges any powers and duties 
106.1   presently vested in or imposed upon the commissioner of 
106.2   transportation or the commissioner of public safety relating to 
106.3   telecommunications facilities or the commissioner of 
106.4   transportation relating only to radio air navigation facilities 
106.5   or other air navigation facilities.  
106.6      Sec. 3.  Minnesota Statutes 1996, section 16B.465, 
106.7   subdivision 1, is amended to read: 
106.8      Subdivision 1.  [CREATION.] The statewide MNET leases 
106.9   private telecommunications access routing system provides 
106.10  resources to provide voice, data, video, and other 
106.11  telecommunications transmission services to state agencies; 
106.12  educational institutions, including public schools as defined in 
106.13  section 120.05, nonpublic, church or religious organization 
106.14  schools which provide instruction in compliance with sections 
106.15  120.101 to 120.102, and private colleges; public corporations; 
106.16  and state political subdivisions.  It is not a telephone company 
106.17  for purposes of chapter 237.  It shall not resell or sublease 
106.18  any services or facilities to nonpublic entities except it may 
106.19  serve private schools and colleges, but it may aggregate demand 
106.20  for public-private cooperatives.  The commissioner has the 
106.21  responsibility for planning, development, and operations of a 
106.22  statewide telecommunications access routing system operating 
106.23  MNET in order to provide cost-effective telecommunications 
106.24  transmission services to system MNET users. 
106.25     Sec. 4.  Minnesota Statutes 1996, section 16B.465, 
106.26  subdivision 3, is amended to read: 
106.27     Subd. 3.  [DUTIES.] The commissioner, after consultation 
106.28  with the council Minnesota office of technology, shall: 
106.29     (1) provide lease voice, data, video, and other 
106.30  telecommunications transmission services to for the state and to 
106.31  political subdivisions through an account in the 
106.32  intertechnologies revolving fund; 
106.33     (2) manage vendor relationships, network function, and 
106.34  capacity planning in order to be responsive to the needs of the 
106.35  system users; 
106.36     (3) set rates and fees for services; 
107.1      (4) approve contracts relating to the system; 
107.2      (5) in consultation with the Minnesota office of 
107.3   technology, develop the system plan, including plans for the 
107.4   phasing of its implementation and maintenance of the initial 
107.5   system, and the annual program and fiscal plans for the system; 
107.6   and 
107.7      (6) in consultation with the Minnesota office of 
107.8   technology, develop a plan for interconnection of the network 
107.9   with private colleges and public and private schools in the 
107.10  state. 
107.11     Sec. 5.  Minnesota Statutes 1996, section 16B.465, 
107.12  subdivision 4, is amended to read: 
107.13     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
107.14  require request the participation of state agencies, the state 
107.15  board of education, and the board of trustees of the Minnesota 
107.16  state colleges and universities and may request the 
107.17  participation of the board of regents of the University of 
107.18  Minnesota, in the planning and implementation of the network to 
107.19  provide interconnective technologies.  The commissioner shall 
107.20  establish reimbursement rates in cooperation with the 
107.21  commissioner of finance to be billed to participating agencies 
107.22  and educational institutions sufficient to cover the operating, 
107.23  maintenance, and administrative costs of the system. 
107.24     (b) A direct appropriation made to an educational 
107.25  institution for usage costs associated with the STARS MNET 
107.26  network must only be used by the educational institution for 
107.27  payment of usage costs of the network as billed by the 
107.28  commissioner of administration.  
107.29     Sec. 6.  Minnesota Statutes 1996, section 16B.465, 
107.30  subdivision 6, is amended to read: 
107.31     Subd. 6.  [REVOLVING FUND.] Money appropriated for the 
107.32  statewide telecommunications access routing system MNET and fees 
107.33  for telecommunications services must be deposited in an account 
107.34  in the intertechnologies revolving fund.  Money in the account 
107.35  is appropriated annually to the commissioner to operate 
107.36  telecommunications services. 
108.1      Sec. 7.  [237A.01] [MINNESOTA OFFICE OF TECHNOLOGY.] 
108.2      Subdivision 1.  [PURPOSE.] The Minnesota office of 
108.3   technology is an agency in the executive branch managed by an 
108.4   executive director appointed by the governor in accordance with 
108.5   section 237A.02, subdivision 1.  The office shall provide 
108.6   leadership and direction for information and communications 
108.7   technology policy in Minnesota.  The office shall coordinate 
108.8   strategic investments in information and communications 
108.9   technology to encourage the development of a technically 
108.10  literate society and to ensure sufficient access to and 
108.11  efficient delivery of government information and services.  
108.12     Subd. 2.  [DISCRETIONARY POWERS.] The office may: 
108.13     (1) enter into contracts for goods or services with public 
108.14  or private organizations and charge fees for services it 
108.15  provides; 
108.16     (2) apply for, receive, and expend money from public 
108.17  agencies; 
108.18     (3) apply for, accept, and disburse grants and other aids 
108.19  from the federal government and other public or private sources; 
108.20     (4) enter into contracts with agencies of the federal 
108.21  government, local governmental units, the University of 
108.22  Minnesota and other educational institutions, and private 
108.23  persons and other nongovernmental organizations as necessary to 
108.24  perform its statutory duties; 
108.25     (5) appoint committees and task forces of not more than two 
108.26  years' duration to assist the office in carrying out its duties; 
108.27     (6) sponsor and conduct conferences and studies, collect 
108.28  and disseminate information, and issue reports relating to 
108.29  information and communications technology issues; 
108.30     (7) participate in the activities of standards bodies and 
108.31  other appropriate conferences related to information and 
108.32  communications technology issues; 
108.33     (8) review the technology infrastructure of regions of the 
108.34  state and cooperate with and make recommendations to the 
108.35  governor, legislature, state agencies, local governments, local 
108.36  technology development agencies, the federal government, private 
109.1   businesses, and individuals for the realization of information 
109.2   and communications technology infrastructure development 
109.3   potential; 
109.4      (9) sponsor, support, and facilitate innovative and 
109.5   collaborative economic and community development and government 
109.6   services projects, including technology initiatives related to 
109.7   culture and the arts, with public and private organizations; and 
109.8      (10) review and recommend alternative sourcing strategies 
109.9   for state information and communications systems. 
109.10     Subd. 3.  [DUTIES.] The office shall: 
109.11     (1) coordinate the efficient and effective use of available 
109.12  federal, state, local, and private resources to develop 
109.13  statewide information and communications technology and its 
109.14  infrastructure; 
109.15     (2) review state agency and intergovernmental information 
109.16  and communications systems development efforts involving state 
109.17  or intergovernmental funding and recommend projects for 
109.18  inclusion in the information technology budget under section 
109.19  16A.11; 
109.20     (3) encourage cooperation and collaboration among state and 
109.21  local governments in developing intergovernmental communication 
109.22  and information systems, and define the structure and 
109.23  responsibilities of the information policy council; 
109.24     (4) cooperate and collaborate with the legislative and 
109.25  judicial branches in the development of information and 
109.26  communications systems in those branches; 
109.27     (5) continue the development of North Star, the state's 
109.28  official comprehensive on-line service and information 
109.29  initiative; 
109.30     (6) promote and collaborate with the state's agencies in 
109.31  the state's transition to an effectively competitive 
109.32  telecommunications market; 
109.33     (7) promote and coordinate education and lifelong learning 
109.34  initiatives to assist Minnesotans in developing technical 
109.35  literacy and obtaining access to ongoing learning resources; 
109.36     (8) promote and coordinate public information access and 
110.1   network initiatives to connect Minnesota's citizens and 
110.2   communities to each other, to their governments, and to the 
110.3   world; 
110.4      (9) promote and coordinate electronic commerce initiatives 
110.5   to ensure that Minnesota businesses and citizens can 
110.6   successfully compete in the global economy; 
110.7      (10) promote and coordinate the regular and periodic 
110.8   reinvestment in the core information and communications 
110.9   technology infrastructure so that state and local government 
110.10  agencies can effectively and efficiently serve their customers; 
110.11     (11) facilitate the cooperative development of standards 
110.12  for information systems, electronic data practices and privacy, 
110.13  and electronic commerce among international, national, state, 
110.14  and local public and private organizations; and 
110.15     (12) work with others to avoid unnecessary duplication of 
110.16  existing services or activities provided by other public and 
110.17  private organizations while building on the existing 
110.18  governmental, educational, business, health care, and economic 
110.19  development infrastructures. 
110.20     Sec. 8.  [237A.02] [OFFICE OF TECHNOLOGY STRUCTURE AND 
110.21  PERSONNEL.] 
110.22     Subdivision 1.  [OFFICE MANAGEMENT AND STRUCTURE.] The 
110.23  executive director is the state's chief information officer and 
110.24  technology advisor to the governor.  The salary of the executive 
110.25  director may not exceed 85 percent of the governor's salary.  
110.26  The executive director may employ a deputy director, assistant 
110.27  directors, and other employees that the executive director may 
110.28  consider necessary.  The executive director and the deputy and 
110.29  assistant directors serve in the unclassified service.  The 
110.30  staff of the office must include individuals knowledgeable in 
110.31  information and communications technology.  The executive 
110.32  director may define the duties and designate the titles of the 
110.33  employees in accordance with chapter 43A. 
110.34     Subd. 2.  [INTERGOVERNMENTAL PARTICIPATION.] The executive 
110.35  director or the director's designee shall serve as a member of 
110.36  the Minnesota education telecommunications council, the 
111.1   geographic information systems council, the library planning 
111.2   task force, or their respective successor organizations, and as 
111.3   a member of Minnesota Technology, Inc., the Minnesota health 
111.4   data institute, and the Minnesota world trade center corporation.
111.5      Sec. 9.  [237A.03] [NORTH STAR INFORMATION ACCESS ACCOUNT.] 
111.6      The North Star information access account is in the special 
111.7   revenue fund.  Money in the account is appropriated to the 
111.8   office of technology to be used to continue the development of 
111.9   the North Star project as provided in this chapter.  The account 
111.10  consists of: 
111.11     (1) grants received from nonstate entities; 
111.12     (2) fees and charges collected by the office; 
111.13     (3) gifts, donations, and bequests made to the office; and 
111.14     (4) other funds credited to the account by law. 
111.15     Sec. 10.  [237A.04] [ADMINISTRATION OF STATE INFORMATION 
111.16  AND COMMUNICATIONS SYSTEMS.] 
111.17     Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
111.18  237A.04 to 237A.06, the following terms have the meanings given 
111.19  them. 
111.20     (a) "Information and communications technology activity" 
111.21  means the development or acquisition of information and 
111.22  communications technology devices and systems, but does not 
111.23  include MNET or other network service providers. 
111.24     (b) "Data processing device or system" means equipment or 
111.25  computer programs, including computer hardware, firmware, 
111.26  software, and communication protocols, used in connection with 
111.27  the processing of information through electronic data processing 
111.28  means, and includes data communication devices used in 
111.29  connection with computer facilities for the transmission of data.
111.30     (c) "State agency" means an agency in the executive branch 
111.31  of state government and includes state colleges and universities 
111.32  and the Minnesota higher education services office. 
111.33     Subd. 2.  [EXECUTIVE DIRECTOR'S RESPONSIBILITY.] The 
111.34  executive director shall coordinate the state's information and 
111.35  communications technology systems to serve the needs of the 
111.36  state government.  The executive director shall: 
112.1      (1) coordinate the design of a master plan for information 
112.2   and communications technology systems in the state and its 
112.3   political subdivisions and shall report on the plan to the 
112.4   governor and legislature at the beginning of each regular 
112.5   session; 
112.6      (2) coordinate all information and communications 
112.7   technology plans and contracts and oversee the state's 
112.8   information and communications systems; 
112.9      (3) establish standards for information and communications 
112.10  systems; and 
112.11     (4) maintain a library of systems and programs developed by 
112.12  the state and its political subdivisions for use by agencies of 
112.13  government. 
112.14     Subd. 3.  [INFORMATION AND COMMUNICATIONS TECHNOLOGY 
112.15  CONTRACTS.] The executive director shall approve state agency 
112.16  information and communications technology contracts.  Contracts 
112.17  approved by the executive director are not subject to the 
112.18  approval of the commissioner of administration under chapter 
112.19  16B.  Although the executive director retains final approval 
112.20  authority for state agency information and communications 
112.21  technology contracts, the commissioner of administration is 
112.22  responsible for preparation of bid or proposal specifications, 
112.23  solicitation of bids or proposals, and other administrative 
112.24  matters relating to the contracting process.  The contract must 
112.25  be awarded to the vendor offering the best value to the state 
112.26  taking into consideration the specifications, terms, and 
112.27  conditions agreed. 
112.28     Subd. 4.  [EVALUATION AND APPROVAL REQUIREMENTS.] A state 
112.29  agency may not undertake an information and communications 
112.30  technology activity until the activity has been evaluated 
112.31  according to the procedures developed under subdivision 5, and 
112.32  the executive director has given written approval of the 
112.33  proposed activity.  If a proposed activity is not approved, the 
112.34  executive director shall direct the commissioner of finance to 
112.35  cancel the unencumbered balance of any appropriation allotted 
112.36  for the activity.  The executive director may delegate approval 
113.1   powers regarding information and communications technology 
113.2   activities to the head of another agency including the agency 
113.3   seeking approval if delegation is deemed appropriate. 
113.4      Subd. 5.  [EVALUATION PROCEDURE.] The executive director 
113.5   shall establish and, as necessary, update and modify procedures 
113.6   to evaluate information and communications activities proposed 
113.7   by state agencies.  The evaluation procedure must assess the 
113.8   necessity, design and plan for development, ability to meet user 
113.9   requirements, feasibility, and flexibility of the proposed data 
113.10  processing device or system, its relationship to other state 
113.11  data processing devices or systems, and its costs and benefits 
113.12  when considered by itself and when compared with other options. 
113.13     Subd. 6.  [REPORT TO LEGISLATURE.] The executive director 
113.14  shall submit to the legislature, in the annual information 
113.15  technology budget required by section 16A.11, a concise 
113.16  narrative explanation of the activity and a request for any 
113.17  additional appropriation necessary to complete the activity. 
113.18     Subd. 7.  [SYSTEM DEVELOPMENT METHODS.] The executive 
113.19  director shall establish and, as necessary, update and modify 
113.20  methods for developing information and communications systems 
113.21  appropriate to the specific needs of individual state agencies.  
113.22  The development methods shall be used to define the design, 
113.23  programming, and implementation of systems.  The development 
113.24  methods must also enable and require a data processing system to 
113.25  be defined in terms of its computer programs, input 
113.26  requirements, output formats, administrative procedures, and 
113.27  processing frequencies. 
113.28     Subd. 8.  [DATA SECURITY SYSTEMS.] In consultation with the 
113.29  attorney general and appropriate agency heads, the executive 
113.30  director shall develop data security policies, guidelines, and 
113.31  standards, and the commissioner of administration shall install 
113.32  and administer state data security systems on the state's 
113.33  centralized computer facility consistent with these policies, 
113.34  guidelines, standards, and state law to ensure the integrity of 
113.35  computer-based and other data and to ensure confidentiality of 
113.36  the data, consistent with the public's right to know as defined 
114.1   in chapter 13.  Each department or agency head is responsible 
114.2   for the security of the department's or agency's data. 
114.3      Subd. 9.  [JOINT ACTIONS.] The executive director may join 
114.4   with the federal government, other states, local governments, 
114.5   and organizations representing those groups either jointly or 
114.6   severally in the development and implementation of systems 
114.7   analysis, information services, and computerization projects. 
114.8      Subd. 10.  [ELECTRONIC PERMITTING AND LICENSING.] The 
114.9   executive director, in consultation with affected parties, shall 
114.10  coordinate the development of a system through which state 
114.11  permits or licenses normally issued immediately upon payment of 
114.12  a fee may be issued through electronic access to the appropriate 
114.13  state agencies. 
114.14     Sec. 11.  [237A.05] [INFORMATION AND COMMUNICATIONS 
114.15  TECHNOLOGY POLICY.] 
114.16     Subdivision 1.  [DEVELOPMENT.] The office of technology 
114.17  shall coordinate with state agencies in the development and 
114.18  establishment of policies and standards for state agencies to 
114.19  follow in developing and purchasing information and 
114.20  communications systems and training appropriate persons in their 
114.21  use.  The office shall develop, promote, and coordinate state 
114.22  technology, architecture, standards and guidelines, information 
114.23  needs analysis techniques, contracts for the purchase of 
114.24  equipment and services, and training of state agency personnel 
114.25  on these issues. 
114.26     Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
114.27  activities prescribed by law, the office of technology shall 
114.28  carry out the duties set out in this subdivision. 
114.29     (b) The office shall develop and establish a state 
114.30  information architecture to ensure that further state agency 
114.31  development and purchase of information and communications 
114.32  systems, equipment, and services is designed to ensure that 
114.33  individual agency information systems complement and do not 
114.34  needlessly duplicate or conflict with the systems of other 
114.35  agencies.  When state agencies have need for the same or similar 
114.36  computer data, the executive director, in coordination with the 
115.1   affected agencies, shall ensure that the most efficient and 
115.2   cost-effective method of producing and storing data for or 
115.3   sharing data between those agencies is used.  The development of 
115.4   this information architecture must include the establishment of 
115.5   standards and guidelines to be followed by state agencies. 
115.6      (c) The office shall assist state agencies in the planning 
115.7   and management of information systems so that an individual 
115.8   information system reflects and supports the state agency's 
115.9   mission and the state's requirements and functions. 
115.10     (d) The office shall review agency requests for legislative 
115.11  appropriations for the development or purchase of information 
115.12  systems equipment or software. 
115.13     (e) The office shall review major purchases of information 
115.14  systems equipment to: 
115.15     (1) ensure that the equipment follows the standards and 
115.16  guidelines of the state information architecture; 
115.17     (2) ensure that the equipment is consistent with the 
115.18  information management principles adopted by the information 
115.19  policy council; 
115.20     (3) evaluate whether the agency's proposed purchase 
115.21  reflects a cost-effective policy regarding volume purchasing; 
115.22  and 
115.23     (4) ensure that the equipment is consistent with other 
115.24  systems in other state agencies so that data can be shared among 
115.25  agencies, unless the office determines that the agency 
115.26  purchasing the equipment has special needs justifying the 
115.27  inconsistency. 
115.28     (f) The office shall review the operation of information 
115.29  systems by state agencies and provide advice and assistance to 
115.30  ensure that these systems are operated efficiently and 
115.31  continually meet the standards and guidelines established by the 
115.32  office.  The standards and guidelines must emphasize uniformity 
115.33  that encourages information interchange, open systems 
115.34  environments, and portability of information whenever 
115.35  practicable and consistent with an agency's authority and 
115.36  chapter 13.  The office, in consultation with the 
116.1   intergovernmental information systems advisory council and the 
116.2   legislative reference library, shall recommend specific 
116.3   standards and guidelines for each state agency within a time 
116.4   period fixed by the office in regard to the following: 
116.5      (1) establishing methods and systems directed at reducing 
116.6   and ultimately eliminating redundant storage of data; 
116.7      (2) establishing data retention schedules, disaster 
116.8   recovery plans and systems, security systems, and procedural 
116.9   safeguards concerning privacy of data; and 
116.10     (3) establishing information sales systems that utilize 
116.11  licensing and royalty agreements to the greatest extent 
116.12  possible, together with procedures for agency denial of requests 
116.13  for licenses or royalty agreements by commercial users or 
116.14  resellers of the information.  Section 3.751 does not apply to 
116.15  those licensing and royalty agreements, and the agreements must 
116.16  include provisions that section 3.751 does not apply and that 
116.17  the state is immune from liability under the agreement. 
116.18     (g) The office shall conduct a comprehensive review at 
116.19  least every three years of the information systems investments 
116.20  that have been made by state agencies and higher education 
116.21  institutions.  The review must include recommendations on any 
116.22  information systems applications that could be provided in a 
116.23  more cost-beneficial manner by an outside source.  The office 
116.24  must report the results of its review to the legislature and the 
116.25  governor. 
116.26     (h) The office shall report to the legislature by January 
116.27  15 of each year on progress in implementing paragraph (f), 
116.28  clauses (1) to (3). 
116.29     Sec. 12.  [237A.06] [GOVERNMENT INFORMATION ACCESS.] 
116.30     Subdivision 1.  [DUTIES.] The office of technology, in 
116.31  consultation with the intergovernmental information systems 
116.32  advisory council, shall: 
116.33     (1) coordinate statewide efforts by units of state and 
116.34  local government to plan for and develop a system for providing 
116.35  access to government information; 
116.36     (2) make recommendations to facilitate coordination and 
117.1   assistance of demonstration projects; 
117.2      (3) advise units of state and local government on provision 
117.3   of government data to citizens and businesses; and 
117.4      (4) explore ways and means to improve citizen and business 
117.5   access to public data, including implementation of technological 
117.6   improvements. 
117.7      Subd. 2.  [APPROVAL OF STATE AGENCY INITIATIVES.] A state 
117.8   agency shall coordinate with the office of technology when 
117.9   implementing a new initiative for providing electronic access to 
117.10  state government information. 
117.11     Subd. 3.  [CAPITAL INVESTMENT.] No state agency may propose 
117.12  or implement a capital investment plan for a state office 
117.13  building unless: 
117.14     (1) the agency has developed a plan for increasing 
117.15  telecommuting by employees who would normally work in the 
117.16  building, or the agency has prepared a statement describing why 
117.17  such a plan is not practicable; and 
117.18     (2) the plan or statement has been reviewed by the office. 
117.19     Sec. 13.  [INITIAL DUTIES.] 
117.20     (a) Upon creation, the office of technology shall perform a 
117.21  series of preliminary duties designed to assess the current 
117.22  status of the state's investment in information technology and 
117.23  to establish a clear means of directing future information 
117.24  technology initiatives. 
117.25     (b) By November 1, 1997, the office shall recommend to the 
117.26  governor and the legislature a clearly defined statutory funding 
117.27  structure that: 
117.28     (1) efficiently uses available federal, state, and local 
117.29  funding sources to develop and maintain a statewide public 
117.30  information and communications infrastructure; and 
117.31     (2) provides a means of tracking and compiling all state 
117.32  agency expenditures related to information technology. 
117.33     This report also shall include a proposed format to be used 
117.34  by state agencies for information technology budget requests.  
117.35  The proposed format must be created in collaboration with the 
117.36  departments of administration and finance. 
118.1      (c) By December 1, 1997, the office shall review and report 
118.2   to the governor and the legislature on the status of all 
118.3   currently established state agency and intergovernmental 
118.4   information and communications systems that use state funding.  
118.5   The report shall recommend a means of consolidating existing 
118.6   governmental information technology boards and councils, to 
118.7   achieve efficiency, prevent duplication of effort, and clarify 
118.8   lines of authority. 
118.9      Sec. 14.  [EMPLOYEES; TRANSITION.] 
118.10     Persons employed by the office of technology on the day 
118.11  before the effective date of this section are in the 
118.12  unclassified service until June 30, 1998.  On July 1, 1998, 
118.13  these employees, other than the executive director and the 
118.14  deputy and assistant directors, are transferred to the 
118.15  classified service. 
118.16     Sec. 15.  [TRANSFERS.] 
118.17     In accordance with Minnesota Statutes, sections 15.039 and 
118.18  43A.045, the budget and 12 positions for functions transferred 
118.19  from the information policy office, with incumbents, excluding 
118.20  the public information policy analysis division, are transferred 
118.21  to the Minnesota office of technology, effective July 1, 1997. 
118.22     Sec. 16.  [INSTRUCTION TO REVISOR.] 
118.23     The revisor shall change in Minnesota Statutes and 
118.24  Minnesota Rules all references to the information policy office 
118.25  and the government information access council to the Minnesota 
118.26  office of technology. 
118.27     Sec. 17.  [REPEALER.] 
118.28     Minnesota Statutes 1996, sections 15.95; 15.96; 16B.40; 
118.29  16B.41; and 16B.43, are repealed. 
118.30                             ARTICLE 8
118.31                     NORTH STAR ON-LINE SERVICE
118.32     Section 1.  [237B.01] [DEFINITIONS.] 
118.33     Subdivision 1.  [SCOPE.] The terms used in this chapter 
118.34  have the meanings given them in this section. 
118.35     Subd. 2.  [GOVERNMENT UNIT.] "Government unit" means a 
118.36  state department, agency, commission, council, board, task 
119.1   force, or committee; constitutional office; court entity; 
119.2   Minnesota state colleges and universities; county, statutory or 
119.3   home rule charter city, or town; school district; special 
119.4   district; and any other board, commission, district, or 
119.5   authority created pursuant to law, local ordinance, or charter 
119.6   provision. 
119.7      Subd. 3.  [IT.] "IT" means information and 
119.8   telecommunications technology. 
119.9      Subd. 4.  [IT COMMUNITY RESOURCE DEVELOPMENT INITIATIVE.] 
119.10  "IT community resource development initiative" means the 
119.11  programs developed under sections 237B.11 to 237B.14. 
119.12     Subd. 5.  [CENTER.] "Center" means the Minnesota Internet 
119.13  Center established under sections 237B.11 to 237B.14. 
119.14     Subd. 6.  [NORTH STAR.] "North Star" means the state's 
119.15  comprehensive government on-line service and information 
119.16  initiative.  North Star is Minnesota's government framework for 
119.17  coordination and collaboration in providing on-line government 
119.18  services and information. 
119.19     Subd. 7.  [CORE SERVICES.] "Core services" means 
119.20  information system applications required to provide secure 
119.21  information services and on-line applications and content to the 
119.22  public from government units.  On-line applications may include, 
119.23  but are not limited to: 
119.24     (1) standardized public directory services and standardized 
119.25  content services; 
119.26     (2) on-line search systems; 
119.27     (3) general technical services to support government unit 
119.28  on-line services; 
119.29     (4) electronic conferencing and communication services; 
119.30     (5) secure electronic transaction services; 
119.31     (6) digital audio, video, and multimedia services; and 
119.32     (7) government intranet content and service development. 
119.33     Subd. 8.  [TELETERN.] "Teletern" means a student enrolled 
119.34  in a higher education program who has qualifications and duties 
119.35  described in section 237B.13. 
119.36     Sec. 2.  [237B.02] [NORTH STAR STAFF; OVERSIGHT BY OFFICE 
120.1   OF TECHNOLOGY.] 
120.2      The executive director of the Minnesota office of 
120.3   technology shall appoint the manager of the North Star 
120.4   initiative and hire staff to carry out the responsibilities of 
120.5   the initiative. 
120.6      Sec. 3.  [237B.03] [NORTH STAR PARTICIPATION, CONSULTATION, 
120.7   AND GUIDELINES.] 
120.8      The North Star staff shall consult with governmental and 
120.9   nongovernmental organizations to establish rules for 
120.10  participation in the North Star initiative.  Government units 
120.11  planning, developing, or providing publicly accessible on-line 
120.12  services shall provide access through and collaborate with North 
120.13  Star and formally register with the initiative.  The University 
120.14  of Minnesota is requested to establish on-line connections and 
120.15  collaborate with North Star.  Units of the legislature shall 
120.16  make their services available through North Star.  Government 
120.17  units may be required to submit standardized directory and 
120.18  general content for core services, but are not required to 
120.19  purchase core services from North Star.  North Star shall 
120.20  promote broad public access to the sources of on-line 
120.21  information or services through multiple technologies. 
120.22     Sec. 4.  [237B.04] [NORTH STAR SECURE TRANSACTIONS, FEES.] 
120.23     Subdivision 1.  [SECURE TRANSACTION SYSTEM.] North Star 
120.24  shall plan and develop a secure transaction system to support 
120.25  delivery of government services electronically. 
120.26     Subd. 2.  [FEES.] The executive director shall establish 
120.27  fees for technical and transaction services for government units 
120.28  through North Star.  Fees must be deposited into the North Star 
120.29  information access account. 
120.30     Sec. 5.  [237B.05] [AGGREGATION OF SERVICE DEMAND.] 
120.31     The North Star staff shall identify opportunities for 
120.32  aggregation of demand for technical services required by 
120.33  government units for on-line activities and may contract with 
120.34  governmental or nongovernmental entities for provision of 
120.35  services.  These contracts are not subject to the requirements 
120.36  of chapter 16B, except sections 16B.167, 16B.17, and 16B.175. 
121.1      Sec. 6.  [237B.06] [NORTH STAR OUTREACH.] 
121.2      North Star may promote the availability of government 
121.3   on-line services and information through public outreach and 
121.4   education.  Public network expansion in communities through 
121.5   libraries, schools, colleges, local government, and other 
121.6   community access points shall include access to North Star.  
121.7   North Star may make materials available to those public sites to 
121.8   promote awareness of the service. 
121.9      Sec. 7.  [237B.07] [ADVANCED DEVELOPMENT COLLABORATION.] 
121.10     The Minnesota office of technology shall identify 
121.11  information technology initiatives with broad public impact and 
121.12  advanced development requirements.  Those initiatives shall 
121.13  assist in the development of and utilization of core services to 
121.14  the greatest extent possible where appropriate, cost effective, 
121.15  and technically feasible.  This includes, but is not limited to, 
121.16  higher education, statewide on-line library, economic and 
121.17  community development, and K-12 educational technology 
121.18  initiatives.  North Star shall participate in electronic 
121.19  commerce research and development initiatives with the 
121.20  University of Minnesota and other partners.  The statewide 
121.21  on-line library initiative shall consult, collaborate, and work 
121.22  with North Star to ensure development of proposals for advanced 
121.23  government information locator and electronic depository and 
121.24  archive systems. 
121.25     Sec. 8.  [237B.11] [IT COMMUNITY RESOURCE DEVELOPMENT 
121.26  INITIATIVE.] 
121.27     Subdivision 1.  [CREATION AND PURPOSE.] The information and 
121.28  telecommunications technology (IT) community resource 
121.29  development initiative is created under the oversight 
121.30  jurisdiction of the Minnesota office of technology to build the 
121.31  capacity of citizens, businesses, communities, and regions of 
121.32  the state to fully realize the benefits of IT for sustainable 
121.33  community and economic development and to help facilitate the 
121.34  transition into the market-based, competitive IT environment. 
121.35     Subd. 2.  [DUTIES GENERALLY.] Through this initiative, the 
121.36  Minnesota office of technology shall: 
122.1      (1) provide for information collection, organization, and 
122.2   distribution regarding the benefits, applications, and effective 
122.3   uses of IT; 
122.4      (2) create the Minnesota Internet Center, centrally located 
122.5   within the state, to collaborate with North Star, public and 
122.6   private partners, and with existing or emerging technology and 
122.7   community development efforts; 
122.8      (3) promote community-based telecommunications planning and 
122.9   development and the use of community-oriented electronic 
122.10  communications and information applications in health care, 
122.11  education, and commerce; 
122.12     (4) award grants for community-based development seed funds 
122.13  to encourage public-private partnerships that foster effective 
122.14  IT use and IT integration activities in the community; and 
122.15     (5) facilitate the aggregation of demand for IT on a 
122.16  comprehensive private, nonprofit, and public sector shared basis 
122.17  in communities. 
122.18     Sec. 9.  [237B.12] [IT COMMUNITY RESOURCE CENTER DUTIES; 
122.19  GENERALLY.] 
122.20     The Minnesota Internet Center shall assist communities and 
122.21  regions in comprehensive IT community planning, demand 
122.22  aggregation, design, and implementation.  It shall maintain an 
122.23  interactive database of community and business-related IT 
122.24  experience, showcase successful models of community and business 
122.25  IT integration, coordinate statewide IT community development 
122.26  technical assistance, and act as a clearinghouse for 
122.27  applications and education in the uses of IT. 
122.28     Sec. 10.  [237B.13] [TELETERNS AND COMMUNITY IT RESOURCE 
122.29  TEAMS.] 
122.30     The center shall coordinate the training and placement of 
122.31  teleterns who have IT experience and community development 
122.32  process skills, regional IT community development coordinators, 
122.33  and community IT resource teams to work in partnership with 
122.34  communities as they plan for and implement comprehensive IT 
122.35  resource development efforts.  This includes the aggregation of 
122.36  demand for IT to help facilitate the transition into a 
123.1   market-based, competitive IT environment and the use of IT tools 
123.2   to enhance access to community services, improve the business 
123.3   climate, and strengthen community ties. 
123.4      Sec. 11.  [237B.14] [COLLABORATION PARTNERS; ASSISTANCE AND 
123.5   FUNDING REQUIREMENTS.] 
123.6      Subdivision 1.  [COMMUNITY-BASED DEVELOPMENT PARTNERS.] The 
123.7   center and its community-based development functions shall 
123.8   coordinate or partner, when possible, with Minnesota learning 
123.9   community initiatives, particularly for community-based 
123.10  technology learning centers; Minnesota library technology 
123.11  investments; Trade Point Minnesota, the University of Minnesota 
123.12  Secure Electronic Authentication Link (SEAL) laboratory and 
123.13  electronic trading centers; the Small Business Administration 
123.14  business information center; Minnesota Technology centers; the 
123.15  Minnesota extension service Access Minnesota sites; and the 
123.16  state's telecommunications collaboration project, among others. 
123.17     Subd. 2.  [ASSISTANCE AND FUNDING; GENERAL PRINCIPLES.] 
123.18  Community technical assistance and development seed funding for 
123.19  aggregation of demand and community IT planning provided through 
123.20  the IT community resource development initiative must be 
123.21  contingent upon the following general principles: 
123.22     (1) that communities and regions show evidence of, or 
123.23  intent to do, cooperative funding and planning between sectors 
123.24  including, but not limited to, private sector providers, public 
123.25  sector technology investments such as MNet, library systems, 
123.26  health care providers, businesses, schools and other educational 
123.27  institutions, and the nonprofit sector; and 
123.28     (2) that communities and regions agree to form local and 
123.29  regional IT coordination committees or modify similar, existing 
123.30  committees to be more inclusive of other sectors and undertake 
123.31  comprehensive planning across those sectors to leverage public 
123.32  and private IT investment to the maximum benefit of all citizens.
123.33     Sec. 12.  [EFFECTIVE DATE.] 
123.34     Sections 1 to 8 are effective the day following final 
123.35  enactment. 
123.36                             ARTICLE 9
124.1              PUBLIC EMPLOYEE AND OFFICIAL COMPENSATION 
124.2      Section 1.  Minnesota Statutes 1996, section 3.855, 
124.3   subdivision 3, is amended to read: 
124.4      Subd. 3.  [OTHER SALARIES AND COMPENSATION PLANS.] The 
124.5   commission shall also: 
124.6      (1) review and approve, reject, or modify a plan for 
124.7   compensation and terms and conditions of employment prepared and 
124.8   submitted by the commissioner of employee relations under 
124.9   section 43A.18, subdivision 2, covering all state employees who 
124.10  are not represented by an exclusive bargaining representative 
124.11  and whose compensation is not provided for by chapter 43A or 
124.12  other law; 
124.13     (2) review and approve, reject, or modify a plan for total 
124.14  compensation and terms and conditions of employment for 
124.15  employees in positions identified as being managerial under 
124.16  section 43A.18, subdivision 3, whose salaries and benefits are 
124.17  not otherwise provided for in law or other plans established 
124.18  under chapter 43A; 
124.19     (3) review and approve, reject, or modify recommendations 
124.20  for salaries submitted by the governor or other appointing 
124.21  authority under section 43A.18, subdivision 5, covering agency 
124.22  head positions listed in section 15A.081 15A.0815; 
124.23     (4) review and approve, reject, or modify recommendations 
124.24  for salaries of officials of higher education systems under 
124.25  section 15A.081, subdivision 7b; and 
124.26     (5) review and approve, reject, or modify plans for 
124.27  compensation, terms, and conditions of employment proposed under 
124.28  section 43A.18, subdivisions 3a and 4. 
124.29     Sec. 2.  Minnesota Statutes 1996, section 15A.081, 
124.30  subdivision 7b, is amended to read: 
124.31     Subd. 7b.  [HIGHER EDUCATION OFFICERS.] The board of 
124.32  trustees of the Minnesota state colleges and universities and 
124.33  the higher education services council shall set the salary rates 
124.34  for, respectively, the chancellor of the Minnesota state 
124.35  colleges and universities and the director of the higher 
124.36  education services office.  The board or the council shall 
125.1   submit the proposed salary change to the legislative 
125.2   coordinating commission for approval, modification, or rejection 
125.3   in the manner provided in section 3.855.  The salary rate for 
125.4   the chancellor of the Minnesota state colleges and universities 
125.5   may not exceed 95 percent of the salary of the governor under 
125.6   section 15A.082, subdivision 3.  For purposes of this 
125.7   subdivision, "the salary rate of the chancellor" does not 
125.8   include: 
125.9      (1) employee benefits that are also provided for the 
125.10  majority of all other full-time state employees, vacation and 
125.11  sick leave allowances, health and dental insurance, disability 
125.12  insurance, term life insurance, and pension benefits or like 
125.13  benefits the cost of which is borne by the employee or which is 
125.14  not subject to tax as income under the Internal Revenue Code of 
125.15  1986; 
125.16     (2) dues paid to organizations that are of a civic, 
125.17  professional, educational, or governmental nature; 
125.18     (3) reimbursement for actual expenses incurred by the 
125.19  employee that the appointing authority determines to be directly 
125.20  related to the performance of job responsibilities, including 
125.21  any relocation expenses paid during the initial year of 
125.22  employment; or 
125.23     (4) a housing allowance that is comparable to housing 
125.24  allowances provided to chancellors and university presidents in 
125.25  similar higher education systems nationwide.  
125.26     The salary of the director of the higher education services 
125.27  office may not exceed the maximum of the salary range for the 
125.28  commissioner of administration.  In deciding whether to 
125.29  recommend a salary increase, the governing board or council 
125.30  shall consider the performance of the chancellor or director, 
125.31  including the chancellor's or director's progress toward 
125.32  attaining affirmative action goals. 
125.33     Sec. 3.  Minnesota Statutes 1996, section 15A.081, 
125.34  subdivision 8, is amended to read: 
125.35     Subd. 8.  [EXPENSE ALLOWANCE.] Notwithstanding any law to 
125.36  the contrary, positions listed in subdivision 1 section 
126.1   15A.0815, subdivisions 3 and 4, constitutional officers, and the 
126.2   commissioner of iron range resources and rehabilitation are 
126.3   authorized an annual expense allowance not to exceed $1,500 for 
126.4   necessary expenses in the normal performance of their duties for 
126.5   which no other reimbursement is provided.  The expenditures 
126.6   under this subdivision are subject to any laws and rules 
126.7   relating to budgeting, allotment and encumbrance, preaudit and 
126.8   postaudit.  The commissioner of finance may promulgate adopt 
126.9   rules to assure the proper expenditure of these funds, and to 
126.10  provide for reimbursement. 
126.11     Sec. 4.  Minnesota Statutes 1996, section 15A.081, 
126.12  subdivision 9, is amended to read: 
126.13     Subd. 9.  [TRANSFER OF VACATION AND SICK LEAVE; CERTAIN 
126.14  APPOINTEES.] (a) This subdivision governs transfers of 
126.15  accumulated vacation leave and sick leave if the governor 
126.16  appoints the incumbent of a position listed in this section 
126.17  15A.0815 to another position listed in this section 15A.0815. 
126.18     (b) An appointee moving between positions in the executive 
126.19  branch shall transfer all vacation leave and sick leave hours to 
126.20  the appointee's credit at the time of the new appointment. 
126.21     (c) The governor may authorize an appointee to transfer 
126.22  accumulated vacation leave and sick leave hours under the 
126.23  following conditions: 
126.24     (1) an appointee moving to a position in the executive 
126.25  branch from a position outside the executive branch may be 
126.26  permitted to transfer no more than 275 hours of accumulated 
126.27  unliquidated vacation leave and no more than 900 hours of 
126.28  accumulated unliquidated sick leave; and 
126.29     (2) an appointee moving to a position outside the executive 
126.30  branch from a position within the executive branch may be 
126.31  permitted to transfer accumulated unliquidated vacation leave 
126.32  and sick leave hours up to the maximum accumulations permitted 
126.33  by the personnel policies governing the new position. 
126.34  The governor shall notify the commissioner of employee relations 
126.35  of any transfers authorized under this paragraph. 
126.36     Sec. 5.  [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.] 
127.1      Subdivision 1.  [SALARY LIMITS.] The governor or other 
127.2   appropriate appointing authority shall set the salary rates for 
127.3   positions listed in this section within the salary limits listed 
127.4   in subdivisions 2 to 5, subject to approval of the legislative 
127.5   coordinating commission and the legislature as provided by 
127.6   sections 3.855, 15A.081, subdivision 7b, and 43A.18, subdivision 
127.7   5.  
127.8      Subd. 2.  [HIGHER EDUCATION SYSTEM LIMITS.] The salary rate 
127.9   of the chancellor of Minnesota state colleges and universities 
127.10  may not exceed 95 percent of the salary of the governor.  For 
127.11  purposes of this subdivision, "the salary rate of the 
127.12  chancellor" does not include: 
127.13     (1) employee benefits that are also provided for the 
127.14  majority of all other full-time state employees, vacation and 
127.15  sick leave allowances, health and dental insurance, disability 
127.16  insurance, term life insurance, and pension benefits; 
127.17     (2) any benefits the cost of which is borne by the employee 
127.18  or which is not subject to tax as income under the Internal 
127.19  Revenue Code of 1986; 
127.20     (3) dues paid to organizations that are of a civic, 
127.21  professional, educational, or governmental nature; 
127.22     (4) reimbursement for actual expenses incurred by the 
127.23  employee that the appointing authority determines to be directly 
127.24  related to the performance of job responsibilities, including 
127.25  any relocation expenses paid during the initial year of 
127.26  employment; or 
127.27     (5) a housing allowance that is comparable to housing 
127.28  allowances provided to chancellors and university presidents in 
127.29  similar higher education systems nationwide. 
127.30     Subd. 3.  [GROUP I SALARY LIMITS.] The salaries for 
127.31  positions in this subdivision may not exceed 85 percent of the 
127.32  salary of the governor:  
127.33     Commissioner of administration; 
127.34     Commissioner of agriculture; 
127.35     Commissioner of children, families, and learning; 
127.36     Commissioner of commerce; 
128.1      Commissioner of corrections; 
128.2      Commissioner of economic security; 
128.3      Commissioner of employee relations; 
128.4      Commissioner of finance; 
128.5      Commissioner of health; 
128.6      Executive director, higher education services office; 
128.7      Commissioner, housing finance agency; 
128.8      Commissioner of human rights; 
128.9      Commissioner of human services; 
128.10     Executive director, state board of investment; 
128.11     Commissioner of labor and industry; 
128.12     Executive director, Minnesota state high school league; 
128.13     Commissioner of natural resources; 
128.14     Director of office of strategic and long-range planning; 
128.15     Commissioner, pollution control agency; 
128.16     Commissioner of public safety; 
128.17     Commissioner, department of public service; 
128.18     Commissioner of revenue; 
128.19     Commissioner of trade and economic development; 
128.20     Commissioner of transportation; and 
128.21     Commissioner of veterans affairs. 
128.22     Subd. 4.  [GROUP II SALARY LIMITS.] The salaries for 
128.23  positions in this subdivision may not exceed 75 percent of the 
128.24  salary of the governor: 
128.25     Ombudsman for corrections; 
128.26     Executive director of gambling control board; 
128.27     Commissioner, bureau of mediation services; 
128.28     Ombudsman for mental health and retardation; 
128.29     Executive director of pari-mutuel racing; 
128.30     Executive director, public employees retirement 
128.31  association; 
128.32     Commissioner, public utilities commission; 
128.33     Executive director, state retirement system; and 
128.34     Executive director, teachers retirement association. 
128.35     Subd. 5.  [GROUP III SALARY LIMITS.] The salary for a 
128.36  position in this subdivision may not exceed 25 percent of the 
129.1   salary of the governor: 
129.2      Chair, metropolitan airports commission. 
129.3      Sec. 6.  Minnesota Statutes 1996, section 15A.083, 
129.4   subdivision 5, is amended to read: 
129.5      Subd. 5.  [TAX COURT.] Salaries The salary of judges a 
129.6   judge of the tax court are is the same as the base salary for 
129.7   a district judges as set under section 15A.082, subdivision 
129.8   3 court judge.  The salary of the chief tax court judge is the 
129.9   same as the salary for a chief district court judge. 
129.10     Sec. 7.  Minnesota Statutes 1996, section 15A.083, 
129.11  subdivision 6a, is amended to read: 
129.12     Subd. 6a.  [ADMINISTRATIVE LAW JUDGE; MAXIMUM SALARY 
129.13  SALARIES.] The salary of the chief administrative law judge is 
129.14  the same as the salary of a district court judge.  The salaries 
129.15  of the assistant chief administrative law judge and 
129.16  administrative law judge supervisors are 95 percent of the 
129.17  salary of a district court judge.  The maximum salary of an 
129.18  administrative law judge in the classified service employed by 
129.19  the office of administrative hearings is 90 percent of the 
129.20  salary of a district court judges as set under section 15A.082, 
129.21  subdivision 3 judge.  
129.22     Sec. 8.  Minnesota Statutes 1996, section 15A.083, 
129.23  subdivision 7, is amended to read: 
129.24     Subd. 7.  [WORKERS' COMPENSATION COURT OF APPEALS AND 
129.25  COMPENSATION JUDGES.] Salaries of judges of the workers' 
129.26  compensation court of appeals are the same as the salary for 
129.27  district court judges as set under section 15A.082, subdivision 
129.28  3.  The salary of the chief judge of the workers' compensation 
129.29  court of appeals is the same as the salary for a chief district 
129.30  court judge.  Salaries of compensation judges are 75 90 percent 
129.31  of the salary of district court judges.  The chief workers' 
129.32  compensation settlement judge at the department of labor and 
129.33  industry may be paid an annual salary that is up to five percent 
129.34  greater than the salary of workers' compensation settlement 
129.35  judges at the department of labor and industry. 
129.36     Sec. 9.  Minnesota Statutes 1996, section 43A.17, 
130.1   subdivision 1, is amended to read: 
130.2      Subdivision 1.  [SALARY LIMITS.] As used in subdivisions 1 
130.3   to 9, "salary" means hourly, monthly, or annual rate of pay 
130.4   including any lump-sum payments and cost-of-living adjustment 
130.5   increases but excluding payments due to overtime worked, shift 
130.6   or equipment differentials, work out of class as required by 
130.7   collective bargaining agreements or plans established under 
130.8   section 43A.18, and back pay on reallocation or other payments 
130.9   related to the hours or conditions under which work is performed 
130.10  rather than to the salary range or rate to which a class is 
130.11  assigned.  For presidents of state universities, "salary" does 
130.12  not include a housing allowance provided through a compensation 
130.13  plan approved under section 43A.18, subdivision 3a. 
130.14     The salary, as established in section 15A.081 15A.0815, of 
130.15  the head of a state agency in the executive branch is the upper 
130.16  limit on the salaries of individual employees in the agency.  
130.17  The salary of the commissioner of labor and industry is the 
130.18  upper limit of salaries of employees in the bureau of mediation 
130.19  services.  However, if an agency head is assigned a salary that 
130.20  is lower than the current salary of another agency employee, the 
130.21  employee retains the salary, but may not receive an increase in 
130.22  salary as long as the salary is above that of the agency head.  
130.23  The commissioner may grant exemptions from these upper limits as 
130.24  provided in subdivisions 3 and 4. 
130.25     Sec. 10.  Minnesota Statutes 1996, section 43A.17, 
130.26  subdivision 3, is amended to read: 
130.27     Subd. 3.  [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request 
130.28  of the appointing authority, and when the commissioner 
130.29  determines that changes in employment situations create 
130.30  difficulties in attracting or retaining employees, the 
130.31  commissioner may approve an unusual employment situation 
130.32  increase to advance an employee within the compensation plan.  
130.33  Such The action will must be consistent with applicable 
130.34  provisions of collective bargaining agreements or plans pursuant 
130.35  to adopted under section 43A.18.  The commissioner shall review 
130.36  each proposal giving due consideration to salary rates paid to 
131.1   other employees in the same class and agency and may approve any 
131.2   request which in the commissioner's judgment is in the best 
131.3   interest of the state. If the commissioner determines that the 
131.4   position requires special expertise necessitating a higher 
131.5   salary to attract or retain qualified persons, the commissioner 
131.6   may grant an exemption not to exceed 120 percent of the base 
131.7   salary of the head of the agency or the maximum rate established 
131.8   for the position, whichever is less.  
131.9      Sec. 11.  Minnesota Statutes 1996, section 43A.18, 
131.10  subdivision 4, is amended to read: 
131.11     Subd. 4.  [PLANS NOT ESTABLISHED BUT APPROVED BY 
131.12  COMMISSIONER.] (a) Notwithstanding any other law to the 
131.13  contrary, terms and conditions of employment for employees 
131.14  listed in this subdivision must be set by appointing authorities 
131.15  within the limits of compensation plans that have been approved 
131.16  by the commissioner before becoming effective.  Compensation 
131.17  plans established under paragraphs paragraph (c) and (d), must 
131.18  be reviewed and approved, modified, or rejected by the 
131.19  legislature and the legislative coordinating commission on 
131.20  employee relations under section 3.855, subdivision subdivisions 
131.21  2 and 3, before becoming effective. 
131.22     (b) Total compensation for employees who are not covered by 
131.23  a collective bargaining agreement in the offices of the 
131.24  governor, lieutenant governor, attorney general, secretary of 
131.25  state, state auditor, and state treasurer must be determined by 
131.26  the governor, lieutenant governor, attorney general, secretary 
131.27  of state, state auditor, and state treasurer, respectively.  
131.28     (c) Total compensation for classified administrative law 
131.29  judges in the office of administrative hearings must be 
131.30  determined by the chief administrative law judge.  
131.31     (d) Total compensation for unclassified positions not 
131.32  covered by a collective bargaining agreement in the higher 
131.33  education services office must be determined by the higher 
131.34  education services office. 
131.35     Sec. 12.  Minnesota Statutes 1996, section 43A.18, 
131.36  subdivision 5, is amended to read: 
132.1      Subd. 5.  [GOVERNOR APPOINTING AUTHORITIES TO RECOMMEND 
132.2   CERTAIN SALARIES.] (a) The governor shall, by July 1 of each 
132.3   odd-numbered year, or other appropriate appointing authority, 
132.4   may submit to the legislative coordinating commission on 
132.5   employee relations recommendations for salaries within the 
132.6   salary range limits for the positions listed in section 15A.081, 
132.7   subdivisions 1 and 7 15A.0815, subdivisions 3 to 5.  The 
132.8   governor An appointing authority may also propose additions or 
132.9   deletions of positions from those listed.  
132.10     (b) Before submitting the recommendations, the governor 
132.11  appointing authority shall consult with the commissioner of 
132.12  administration, the commissioner of finance, and the 
132.13  commissioner of employee relations concerning the 
132.14  recommendations.  
132.15     (c) In making recommendations, the governor appointing 
132.16  authority shall consider the criteria established in subdivision 
132.17  8 and the performance of individual incumbents.  The performance 
132.18  evaluation must include a review of an incumbent's progress 
132.19  toward attainment of affirmative action goals.  The governor 
132.20  appointing authority shall establish an objective system for 
132.21  quantifying knowledge, abilities, duties, responsibilities, and 
132.22  accountabilities and in determining recommendations rate each 
132.23  position by this system.  
132.24     (d) Before the governor's appointing authority's 
132.25  recommended salaries take effect, the recommendations must be 
132.26  reviewed and approved, rejected, or modified by the 
132.27  legislative coordinating commission on employee relations and 
132.28  the legislature under section 3.855, subdivision subdivisions 2 
132.29  and 3.  The governor may also at any time propose changes in the 
132.30  salary rate of any positions covered by this subdivision, which 
132.31  must be submitted and approved in the same manner as provided in 
132.32  this subdivision.  If, when the legislature is not in session, 
132.33  the commission fails to reject or modify salary recommendations 
132.34  of the governor within 30 calendar days of their receipt, the 
132.35  recommendations are deemed to be approved.  
132.36     (e) The governor appointing authority shall set the initial 
133.1   salary of a head of a new agency or a chair of a new 
133.2   metropolitan board or commission whose salary is not 
133.3   specifically prescribed by law after consultation with the 
133.4   commissioner, whose recommendation is advisory only.  The amount 
133.5   of the new salary must be comparable to the salary of an agency 
133.6   head or commission chair having similar duties and 
133.7   responsibilities. 
133.8      (f) The salary of a newly appointed head of an agency or 
133.9   chair of a metropolitan agency listed in section 15A.081, 
133.10  subdivision 1 or 7 15A.0815, subdivisions 2 to 5, may be 
133.11  increased or decreased by the governor appointing authority, 
133.12  from the salary previously set for that position within 30 days 
133.13  of the new appointment after consultation with the 
133.14  commissioner.  If the governor appointing authority, increases a 
133.15  salary under this paragraph, the governor appointing authority 
133.16  shall submit the new salary to the legislative coordinating 
133.17  commission on employee relations and the full legislature for 
133.18  approval, modification, or rejection under section 3.855, 
133.19  subdivision subdivisions 2 and 3.  If, when the legislature is 
133.20  not in session, the commission fails to reject or modify salary 
133.21  recommendations of the governor within 30 calendar days of their 
133.22  receipt, the recommendations are deemed to be approved. 
133.23     Sec. 13.  Minnesota Statutes 1996, section 85A.02, 
133.24  subdivision 5a, is amended to read: 
133.25     Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
133.26  administrator who shall serve as the executive secretary and 
133.27  principal administrative officer of the board and, subject to 
133.28  its approval, the administrator shall operate the Minnesota 
133.29  zoological garden and enforce all rules and policy decisions of 
133.30  the board.  The administrator must be chosen solely on the basis 
133.31  of training, experience, and other qualifications appropriate to 
133.32  the field of zoo management and development.  The board shall 
133.33  set the compensation for salary of the administrator within the 
133.34  limits established for the commissioner of agriculture in 
133.35  section 15A.081, subdivision 1.  The salary of the administrator 
133.36  may not exceed 85 percent of the salary of the governor.  The 
134.1   administrator shall perform duties assigned by the board 
134.2   and shall serve serves in the unclassified service at the 
134.3   pleasure of the board.  The administrator, with the 
134.4   participation of the board, shall appoint a development director 
134.5   in the unclassified service or contract with a development 
134.6   consultant to establish mechanisms to foster community 
134.7   participation in and community support for the Minnesota 
134.8   zoological garden.  The board may employ other necessary 
134.9   professional, technical, and clerical personnel.  Employees of 
134.10  the zoological garden are eligible for salary supplement in the 
134.11  same manner as employees of other state agencies.  The 
134.12  commissioner of finance shall determine the amount of salary 
134.13  supplement based on available funds. 
134.14     (b) The board may contract with individuals to perform 
134.15  professional services and may contract for the purchases of 
134.16  necessary species exhibits, supplies, services, and equipment. 
134.17  The board may also contract for the construction and operation 
134.18  of entertainment facilities on the zoo grounds that are not 
134.19  directly connected to ordinary functions of the zoological 
134.20  garden.  The zoo board shall may not enter into any a final 
134.21  agreement for construction of any an entertainment facility that 
134.22  is not directly connected to the ordinary functions of the zoo 
134.23  until after final construction plans have been submitted to the 
134.24  chairs of the senate finance and house appropriations committees 
134.25  for their recommendations. 
134.26     The zoo may not contract for entertainment during the 
134.27  period of the Minnesota state fair that would directly compete 
134.28  with entertainment at the Minnesota state fair. 
134.29     Sec. 14.  Minnesota Statutes 1996, section 298.22, 
134.30  subdivision 1, is amended to read: 
134.31     Subdivision 1.  (1) The office of governor shall appoint 
134.32  the commissioner of iron range resources and rehabilitation is 
134.33  created.  The commissioner shall be appointed by the governor 
134.34  under the provisions of section 15.06. 
134.35     (2) The commissioner may hold such other positions or 
134.36  appointments as that are not incompatible with duties as 
135.1   commissioner of iron range resources and rehabilitation.  The 
135.2   commissioner may appoint a deputy commissioner.  All expenses of 
135.3   the commissioner, including the payment of such assistance as 
135.4   may be necessary, shall must be paid out of the amounts 
135.5   appropriated by section 298.28.  The compensation salary of the 
135.6   commissioner shall must be set by the legislative coordinating 
135.7   commission and may not exceed the maximum salary set for the 
135.8   commissioner of administration under section 15A.081, 
135.9   subdivision 1 166 percent of the average salary of a steelworker 
135.10  in the taconite relief area, as certified by the executive 
135.11  director of the United Steelworkers of America, district 11. 
135.12     (3) When the commissioner shall determine determines that 
135.13  distress and unemployment exists or may exist in the future in 
135.14  any county by reason of the removal of natural resources or a 
135.15  possibly limited use thereof of natural resources in the future 
135.16  and the any resulting decrease in employment resulting 
135.17  therefrom, now or hereafter, the commissioner may use such 
135.18  whatever amounts of the appropriation made to the commissioner 
135.19  of revenue in section 298.28 as that are determined to be 
135.20  necessary and proper in the development of the remaining 
135.21  resources of said the county and in the vocational training and 
135.22  rehabilitation of its residents, except that the amount needed 
135.23  to cover cost overruns awarded to a contractor by an arbitrator 
135.24  in relation to a contract awarded by the commissioner or in 
135.25  effect after July 1, 1985, is appropriated from the general 
135.26  fund.  For the purposes of this section, "development of 
135.27  remaining resources" includes, but is not limited to, the 
135.28  promotion of tourism. 
135.29     Sec. 15.  Minnesota Statutes 1996, section 349A.02, 
135.30  subdivision 1, is amended to read: 
135.31     Subdivision 1.  [DIRECTOR.] A state lottery is established 
135.32  under the supervision and control of the director of the state 
135.33  lottery appointed by the governor with the advice and consent of 
135.34  the senate.  The director must be qualified by experience and 
135.35  training in the operation of a lottery to supervise the 
135.36  lottery.  The director serves in the unclassified service.  The 
136.1   annual salary rate authorized for the director is equal to 80 85 
136.2   percent of the salary rate prescribed for the governor as of the 
136.3   effective date of Laws 1993, chapter 146. 
136.4      Sec. 16.  [SALARIES OF CONSTITUTIONAL OFFICERS, 
136.5   LEGISLATORS, AND JUDGES.] 
136.6      (a) The salaries of constitutional officers are increased 
136.7   by 2.5 percent effective July 1, 1997, and by 2.5 percent 
136.8   effective January 1, 1998. 
136.9      (b) The salaries of legislators are increased by 5.0 
136.10  percent effective January 4, 1999. 
136.11     (c) The salaries of the judges of the supreme court, court 
136.12  of appeals, and district court are increased by 2.5 percent 
136.13  effective July 1, 1997, and by 2.5 percent effective January 1, 
136.14  1998. 
136.15     (d) Effective July 1, 1999, the salaries of judges of the 
136.16  supreme court, court of appeals, and district court are 
136.17  increased by the average of the general salary adjustments for 
136.18  state employees in fiscal year 1998 provided by negotiated 
136.19  collective bargaining agreements or arbitration awards ratified 
136.20  by the legislature in the 1998 legislative session. 
136.21     (e) Effective January 1, 2000, the salaries of judges of 
136.22  the supreme court, court of appeals, and district court are 
136.23  increased by the average of the general salary adjustments for 
136.24  state employees in fiscal year 1999 provided by negotiated 
136.25  collective bargaining agreements or arbitration awards ratified 
136.26  by the legislature in the 1998 legislative session. 
136.27     (f) The commissioner of employee relations shall calculate 
136.28  the average of the general salary adjustments provided by 
136.29  negotiated collective bargaining agreements or arbitration 
136.30  awards ratified by the legislature in the 1998 legislative 
136.31  session.  Negotiated collective bargaining agreements or 
136.32  arbitration awards that do not include general salary 
136.33  adjustments may not be included in these calculations.  The 
136.34  commissioner shall weight the general salary adjustments by the 
136.35  number of full-time equivalent employees covered by each 
136.36  agreement or arbitration award.  The commissioner shall 
137.1   calculate the average general salary adjustment for each fiscal 
137.2   year covered by the agreements or arbitration awards.  The 
137.3   results of these calculations must be expressed as percentages, 
137.4   rounded to the nearest one-tenth of one percent.  The 
137.5   commissioner shall calculate the new salaries for the positions 
137.6   listed in paragraphs (d) and (e) using the applicable 
137.7   percentages from the calculations in this paragraph and report 
137.8   them to the speaker of the house, the president of the senate, 
137.9   the chief justice of the supreme court, and the governor. 
137.10     Sec. 17.  [PHASE-IN OF SALARY INCREASES.] 
137.11     (a) Notwithstanding Minnesota Statutes, section 15A.083, 
137.12  subdivision 6a, the salary of an administrative law judge 
137.13  employed by the office of administrative hearings is 85 percent 
137.14  of the salary of a district court judge effective July 1, 1997.  
137.15  After June 30, 1998, the salary of an administrative law judge 
137.16  employed by the office of administrative hearings is governed by 
137.17  Minnesota Statutes, section 15A.083, subdivision 6a.  If an 
137.18  employee's current salary exceeds the salary provided by this 
137.19  subdivision, the employee retains that salary, but may not 
137.20  receive a salary increase until the salary provided by this 
137.21  section exceeds the employee's current salary. 
137.22     (b) Notwithstanding Minnesota Statutes, section 15A.083, 
137.23  subdivision 6a, the salary of the assistant chief administrative 
137.24  law judge and the administrative law judge supervisor in the 
137.25  office of administrative hearings is 90 percent of the salary of 
137.26  a district court judge effective July 1, 1997.  After June 30, 
137.27  1998, the salary of the assistant chief administrative law judge 
137.28  and the administrative law judge supervisor is governed by 
137.29  Minnesota Statutes, section 15A.083, subdivision 6a.  If an 
137.30  employee's current salary exceeds the salary provided by this 
137.31  subdivision, the employee retains the salary, but may not 
137.32  receive a salary increase until the salary provided by this 
137.33  section exceeds the employee's current salary. 
137.34     (c) Notwithstanding Minnesota Statutes, section 15A.083, 
137.35  subdivision 7, the salary of compensation judges is 85 percent 
137.36  of the salary of a district court judge effective July 1, 1997.  
138.1   After June 30, 1998, the salary of compensation judges is 
138.2   governed by Minnesota Statutes, section 15A.083, subdivision 7. 
138.3      Sec. 18.  [REVISOR INSTRUCTION.] 
138.4      The revisor of statutes shall substitute the reference 
138.5   "section 15A.0815" for each reference to sections 15A.081, 
138.6   subdivisions 1, 7, and 7b, wherever they occur in the next 
138.7   edition of Minnesota Statutes and Minnesota Rules. 
138.8      Sec. 19.  [REPEALER.] 
138.9      Minnesota Statutes 1996, sections 15A.081, subdivisions 1 
138.10  and 7, are repealed.