1.1                          A bill for an act 
  1.2             relating to state government; making supplemental 
  1.3             appropriations and reductions; imposing certain 
  1.4             conditions; modifying provisions relating to state 
  1.5             government; amending Minnesota Statutes 1998, sections 
  1.6             3.099, subdivision 3; 15.0591, subdivision 2; 
  1.7             15A.0815, subdivisions 2 and 3; 16A.10, by adding a 
  1.8             subdivision; 16A.11, subdivision 3; 16A.124, by adding 
  1.9             a subdivision; 16A.126, subdivision 2; 16B.052; 
  1.10            16B.31, by adding a subdivision; 16B.335, subdivision 
  1.11            5; 16B.42, subdivisions 2 and 3; 16B.48, subdivision 
  1.12            4; 16B.485; 43A.38, subdivision 1; 85A.02, subdivision 
  1.13            5a; 119A.05, subdivision 1; 138.17, subdivision 10; 
  1.14            179A.18, subdivision 1; 181.932, subdivision 1; 
  1.15            193.143; 221.173; 256.9753, subdivision 3; 349A.02, 
  1.16            subdivision 1; 352.91, subdivision 3c, and by adding 
  1.17            subdivisions; 352D.02, subdivision 1; 352D.04, 
  1.18            subdivision 2; 356.30, subdivision 1; 422A.101, 
  1.19            subdivision 3; 471.345, by adding a subdivision; 
  1.20            490.121, subdivision 4, and by adding a subdivision; 
  1.21            490.123, subdivisions 1a and 1b; and 490.124, 
  1.22            subdivision 1; Minnesota Statutes 1999 Supplement, 
  1.23            sections 3.971, subdivision 8; 10A.01, subdivisions 2 
  1.24            and 21; 16A.103, subdivision 1; 16A.129, subdivision 
  1.25            3; 16B.616, subdivisions 3 and 4; 125B.21, subdivision 
  1.26            1; 179A.04, subdivision 3; 181.932, subdivision 2; and 
  1.27            473.3993, subdivision 3; Laws 1999, chapter 250, 
  1.28            article 1, sections 11; 14, subdivision 3; 18; and 
  1.29            116; proposing coding for new law in Minnesota 
  1.30            Statutes, chapters 3; 5; 10A; 16A; 43A; and 473; 
  1.31            proposing coding for new law as Minnesota Statutes, 
  1.32            chapter 325G; repealing Minnesota Statutes 1998, 
  1.33            sections 16B.37, subdivisions 1, 2, and 3; 16B.88; 
  1.34            16E.01, subdivisions 2 and 3; 16E.03, subdivisions 1 
  1.35            and 3; 16E.04, subdivision 1; 16E.05; 16E.06; 16E.07, 
  1.36            subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 11; 
  1.37            136F.59, subdivision 3; 352.91, subdivision 4; 
  1.38            465.795; 465.796; 465.797, subdivisions 2, 3, 4, 5, 6, 
  1.39            and 7; 465.7971; 465.798; 465.799; 465.801; 465.802; 
  1.40            465.803; 465.81; 465.82, subdivisions 1, 2, and 3; 
  1.41            465.83; 465.84; 465.85; 465.86; 465.87; and 465.88; 
  1.42            Minnesota Statutes 1999 Supplement, sections 16E.01, 
  1.43            subdivision 1; 16E.02; 16E.03, subdivisions 2, 4, 5, 
  1.44            6, 7, and 8; 16E.04, subdivision 2; 16E.07, 
  1.45            subdivision 4; 16E.08; 43A.318; 465.797, subdivisions 
  1.46            1 and 5a; 465.82, subdivision 4; Laws 1999, chapters 
  2.1             135, section 9; and 250, article 1, section 15, 
  2.2             subdivision 4; Minnesota Rules, parts 7672.0100; 
  2.3             7672.0200; 7672.0300; 7672.0400; 7672.0500; 7672.0600; 
  2.4             7672.0700; 7672.0800; 7672.0900; 7672.1000; 7672.1100; 
  2.5             7672.1200; 7672.1300; 7674.0100; 7674.0200; 7674.0300; 
  2.6             7674.0400; 7674.0500; 7674.0600; 7674.0700; 7674.0800; 
  2.7             7674.0900; 7674.1000; 7674.1100; and 7674.1200. 
  2.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.9                              ARTICLE 1 
  2.10                           APPROPRIATIONS 
  2.11  Section 1.  [APPROPRIATIONS.] 
  2.12     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.13  appropriated from the general fund, or any other fund named, to 
  2.14  the agencies and for the purposes specified in this act, to be 
  2.15  available for the fiscal years indicated for each purpose.  The 
  2.16  figures "2000" and "2001" mean that the appropriation or 
  2.17  appropriations listed under them are available for the fiscal 
  2.18  year ending June 30, 2000, or June 30, 2001, respectively, and 
  2.19  if an earlier appropriation was made for that purpose for that 
  2.20  year, the appropriation in this act is added to it.  Where a 
  2.21  dollar amount appears in parentheses, it means a reduction of an 
  2.22  earlier appropriation for that purpose for that year. 
  2.23                          SUMMARY BY FUND 
  2.24                                                       BIENNIAL
  2.25                            2000          2001           TOTAL
  2.26  General              $ (3,191,000)  $ (5,914,000)  $  (9,105,000)
  2.27  TOTAL                $ (3,191,000)  $ (5,914,000)  $  (9,105,000)
  2.28                                             APPROPRIATIONS 
  2.29                                         Available for the Year 
  2.30                                             Ending June 30 
  2.31                                            2000         2001 
  2.32  Sec. 2.  LEGISLATURE                   $  50,000      $ 
  2.33  $50,000 is for the legislative 
  2.34  commission on Minnesota-Ontario matters 
  2.35  and is available only upon 
  2.36  demonstration of a dollar-for-dollar 
  2.37  match from nonstate sources.  This 
  2.38  appropriation is available until June 
  2.39  30, 2001. 
  2.40  From amounts previously appropriated to 
  2.41  the house of representatives and 
  2.42  carried forward into the biennium 
  2.43  beginning July 1, 1999, $1,500,000 is 
  2.44  canceled to the general fund. 
  2.45  From amounts previously appropriated to 
  2.46  the senate and carried forward into the 
  3.1   biennium beginning July 1, 1999, 
  3.2   $1,500,000 is canceled to the general 
  3.3   fund. 
  3.4   The house of representatives must 
  3.5   minimize the number of members who are 
  3.6   required to change offices if there is 
  3.7   a change in which party is the majority 
  3.8   caucus for the 2001-2002 legislative 
  3.9   session. 
  3.10  Sec. 3.  SECRETARY OF STATE                           2,000,000
  3.11  To construct and maintain the Uniform 
  3.12  Commercial Code central filing system 
  3.13  required by H.F. No. 1394, if enacted, 
  3.14  to be available until June 30, 2001. 
  3.15  Beginning with fiscal year 2002, the 
  3.16  general fund base for the office of the 
  3.17  secretary of state must be reduced by 
  3.18  $2,300,000 in fiscal year 2002 and 
  3.19  $2,300,000 in fiscal year 2003. 
  3.20  Sec. 4.  OFFICE OF STRATEGIC AND 
  3.21  LONG-RANGE PLANNING                                  (2,000,000)
  3.22  This reduction is for a permanent 
  3.23  reduction in staff.  In implementing 
  3.24  this reduction, the commissioner must 
  3.25  not reduce the amounts budgeted for the 
  3.26  state demographer, the land management 
  3.27  information center, or the 
  3.28  environmental quality board by more 
  3.29  than five percent each. 
  3.30  The office of strategic and long-range 
  3.31  planning must develop a plan for 
  3.32  contracting with the University of 
  3.33  Minnesota, other educational 
  3.34  institutions, and other individuals or 
  3.35  entities, for strategic planning 
  3.36  activities for the state.  This plan 
  3.37  shall be submitted to the legislature 
  3.38  by January 15, 2001. 
  3.39  Sec. 5.  ADMINISTRATION               (2,000,000)    (3,049,000)
  3.40  Of this amount, $2,000,000 in fiscal 
  3.41  year 2000 is a reduction to the 
  3.42  appropriation for year 2000 contingency 
  3.43  funds authorized in Laws 1999, chapter 
  3.44  250, article 1, section 12, subdivision 
  3.45  4, $342,000 in fiscal year 2001 is a 
  3.46  reduction for the elimination of the 
  3.47  office of citizenship and volunteer 
  3.48  services, and $2,707,000 in fiscal year 
  3.49  2001 is a reduction for the elimination 
  3.50  of the office of technology. 
  3.51  The appropriation for the Alliance With 
  3.52  Youth must not be reduced.  The 
  3.53  Alliance With Youth is a separate 
  3.54  activity in the department of 
  3.55  administration. 
  3.56  If any portion of the $2,000,000 
  3.57  reduction in year 2000 contingency 
  3.58  funds has been expended or encumbered 
  3.59  before the effective date of this 
  3.60  section, other appropriations to the 
  4.1   department for fiscal year 2001 are 
  4.2   reduced by the amount of these 
  4.3   expenditures or encumbrances. 
  4.4   Sec. 6.  CAMPAIGN FINANCE AND
  4.5   DISCLOSURE BOARD                          48,000             
  4.6   This appropriation is for legal costs 
  4.7   for the board's defense of a 
  4.8   constitutional challenge, and for 
  4.9   expenses associated with implementation 
  4.10  of amendments made to Minnesota 
  4.11  Statutes, section 10A.01, and of new 
  4.12  Minnesota Statutes, section 10A.035.  
  4.13  This appropriation is available until 
  4.14  June 30, 2001. 
  4.15  Sec. 7.  GAMBLING CONTROL
  4.16  BOARD                                     45,000         45,000
  4.17  For workers' compensation claims.  
  4.18  Money not expended in the first year is 
  4.19  available for expenditure in the second 
  4.20  year. 
  4.21  Sec. 8.  MINNEAPOLIS EMPLOYEES
  4.22  RETIREMENT FUND                        (1,334,000)   (1,892,000)
  4.23  This is a one-time reduction for fiscal 
  4.24  years 2000 and 2001 only in payments 
  4.25  made to the Minneapolis employees 
  4.26  retirement fund under Minnesota 
  4.27  Statutes, section 422A.101, subdivision 
  4.28  3. 
  4.29  Sec. 9.  BOARD OF GOVERNMENT
  4.30  INNOVATION AND COOPERATION                           (1,018,000)
  4.31  This reduction is for elimination of 
  4.32  the board. 
  4.33     Sec. 10.  [3.051] [DAILY SESSIONS.] 
  4.34     The rules of proceedings adopted by the house of 
  4.35  representatives and the senate must require that both bodies 
  4.36  convene in daily sessions at the identical regular hour. 
  4.37     Sec. 11.  [3.052] [RULES.] 
  4.38     The house of representatives and the senate shall adopt 
  4.39  rules of procedure that do not require the house in which a bill 
  4.40  originates to ask for the appointment of a conference committee 
  4.41  on the bill when it refuses to concur in an amendment to the 
  4.42  bill by the other house.  The rules shall permit either house to 
  4.43  reconsider and further amend a bill, or the other house's 
  4.44  amendment, until one of the houses chooses instead to ask for 
  4.45  the appointment of a conference committee on the bill. 
  4.46     Sec. 12.  Minnesota Statutes 1998, section 3.099, 
  4.47  subdivision 3, is amended to read: 
  5.1      Subd. 3.  [LEADERS.] The senate committee on rules and 
  5.2   administration for the senate and the house committee on rules 
  5.3   and legislative administration for the house may each designate 
  5.4   for their respective body up to three leadership positions to 
  5.5   receive up to 140 percent of the compensation of other members.  
  5.6   The speaker of the house of representatives, the house majority 
  5.7   and minority leaders, and the chair of the house ways and means 
  5.8   committee shall receive 140 percent of the compensation of other 
  5.9   members. 
  5.10     At the commencement of each biennial legislative session, 
  5.11  each house of the legislature shall adopt a resolution 
  5.12  designating its majority and minority leader. 
  5.13     The majority leader is the person elected by the caucus of 
  5.14  members in each house which is its largest political 
  5.15  affiliation.  The minority leader is the person elected by the 
  5.16  caucus which is its second largest political affiliation. 
  5.17     Sec. 13.  [3.3060] [JOINT STANDING COMMITTEES.] 
  5.18     The house of representatives and the senate shall adopt 
  5.19  rules establishing a system of joint standing committees to 
  5.20  consider and report recommendations on bills introduced in 
  5.21  either house of the legislature. 
  5.22     Sec. 14.  [3.884] [LEGISLATIVE COMMISSION ON 
  5.23  MINNESOTA-ONTARIO MATTERS.] 
  5.24     Subdivision 1.  [ESTABLISHMENT.] A legislative advisory 
  5.25  commission on Minnesota-Ontario matters is established.  The 
  5.26  commission is made up of 12 Minnesota members appointed as 
  5.27  provided in subdivision 2, with the intent of meeting with a 
  5.28  like commission of Ontario citizens appointed as provided by the 
  5.29  appropriate government authority of Ontario for the purpose of 
  5.30  making recommendations regarding Minnesota-Ontario issues of 
  5.31  mutual interest involving natural resources, transportation, 
  5.32  economic development, and social matters.  A report and 
  5.33  appropriate recommendations must be made annually to the 
  5.34  appointing bodies. 
  5.35     Subd. 2.  [MINNESOTA APPOINTEES.] Six of the Minnesota 
  5.36  members must be appointed by the speaker of the house, three 
  6.1   from among the members of the house of representatives and three 
  6.2   from Minnesota citizens with interest in and knowledge of 
  6.3   Minnesota-Ontario issues; and six members appointed by the 
  6.4   subcommittee on committees of the committee on rules and 
  6.5   administration of the senate, three from among the members of 
  6.6   the senate and three from Minnesota citizens with an interest in 
  6.7   and knowledge of Minnesota-Ontario issues. 
  6.8      Subd. 3.  [TERMS.] Minnesota legislative members shall 
  6.9   serve for the term of the legislative office to which they were 
  6.10  elected.  The terms, compensation, and removal of the 
  6.11  nonlegislative members of the commission and expiration of the 
  6.12  commission shall be as provided in section 15.059.  
  6.13     Subd. 4.  [OFFICERS.] There must be cochairs of the 
  6.14  commission.  The Ontario section must have a chair and the 
  6.15  Minnesota section must have a chair.  The Ontario chair must 
  6.16  conduct meetings held in Canada and the Minnesota chair must 
  6.17  conduct meetings held in the United States. 
  6.18     There must be vice-chairs of the respective sections.  
  6.19  There must be elected one secretary from the commission at large.
  6.20     Subd. 5.  [STAFF.] The commission may hire the staff 
  6.21  necessary to carry out its duties. 
  6.22     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
  6.23  3.971, subdivision 8, is amended to read: 
  6.24     Subd. 8.  [BEST PRACTICES REVIEWS.] (a) The legislative 
  6.25  auditor shall conduct best practices reviews that examine the 
  6.26  procedures and practices used to deliver local government 
  6.27  services, determine the methods of local government service 
  6.28  delivery, identify variations in cost and effectiveness, and 
  6.29  identify practices to save money or provide more effective 
  6.30  service delivery.  The legislative auditor shall recommend to 
  6.31  local governments service delivery methods and practices to 
  6.32  improve the cost-effectiveness of services.  The legislative 
  6.33  auditor and the board of government innovation and cooperation 
  6.34  shall notify each other of projects being conducted relating to 
  6.35  improving local government services. 
  6.36     (b) The commission shall approve local government services 
  7.1   to be reviewed with advice from an advisory council appointed by 
  7.2   the legislative auditor and consisting of: 
  7.3      (1) three representatives from the Association of Minnesota 
  7.4   Counties; 
  7.5      (2) three representatives from the League of Minnesota 
  7.6   Cities; 
  7.7      (3) two representatives from the Association of 
  7.8   Metropolitan Municipalities; 
  7.9      (4) one representative from the Minnesota Association of 
  7.10  Townships; and 
  7.11     (5) one representative from the Minnesota Association of 
  7.12  School Administrators.  
  7.13     Sec. 16.  [5.27] [DEPOSIT OF UCC FEES.] 
  7.14     Notwithstanding any law to the contrary, all fees received 
  7.15  by the secretary of state under chapters 336 and 336A must be 
  7.16  deposited in the Uniform Commercial Code account and are 
  7.17  continuously appropriated to the secretary of state.  This 
  7.18  deposit must not occur until the Cambridge bank debt service 
  7.19  account is fully funded. 
  7.20     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
  7.21  10A.01, subdivision 2, is amended to read: 
  7.22     Subd. 2.  [ADMINISTRATIVE ACTION.] "Administrative action" 
  7.23  means an action by any official, board, commission or agency of 
  7.24  the executive branch to enter into a contract for goods or 
  7.25  services to be paid for by public funds in an amount greater 
  7.26  than $5,000,000, or adopt, amend, or repeal a rule under chapter 
  7.27  14.  "Administrative action" does not include the application or 
  7.28  administration of an adopted rule, except in cases of rate 
  7.29  setting, power plant and powerline siting, and granting of 
  7.30  certificates of need under section 216B.243. 
  7.31     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
  7.32  10A.01, subdivision 21, is amended to read: 
  7.33     Subd. 21.  [LOBBYIST.] (a) "Lobbyist" means an individual: 
  7.34     (1) engaged for pay or other consideration, or authorized 
  7.35  to spend money by another individual, association, political 
  7.36  subdivision, or public higher education system, who spends more 
  8.1   than five hours in any month or more than $250, not including 
  8.2   the individual's own travel expenses and membership dues, in any 
  8.3   year, for the purpose of attempting to influence legislative or 
  8.4   administrative action, or the official action of a metropolitan 
  8.5   governmental unit, by communicating or urging others to 
  8.6   communicate with public or local officials; or 
  8.7      (2) who spends more than $250, not including the 
  8.8   individual's own traveling expenses and membership dues, in any 
  8.9   year for the purpose of attempting to influence legislative or 
  8.10  administrative action, or the official action of a metropolitan 
  8.11  governmental unit, by communicating or urging others to 
  8.12  communicate with public or local officials. 
  8.13     (b) "Lobbyist" does not include: 
  8.14     (1) a public official; 
  8.15     (2) an employee of the state, including an employee of any 
  8.16  of the public higher education systems; 
  8.17     (3) an elected local official; 
  8.18     (4) a nonelected local official or an employee of a 
  8.19  political subdivision acting in an official capacity, unless the 
  8.20  nonelected official or employee of a political subdivision 
  8.21  spends more than 50 hours in any month attempting to influence 
  8.22  legislative or administrative action, or the official action of 
  8.23  a metropolitan governmental unit other than the political 
  8.24  subdivision employing the official or employee, by communicating 
  8.25  or urging others to communicate with public or local officials, 
  8.26  including time spent monitoring legislative or administrative 
  8.27  action, or the official action of a metropolitan governmental 
  8.28  unit, and related research, analysis, and compilation and 
  8.29  dissemination of information relating to legislative or 
  8.30  administrative policy in this state, or to the policies of 
  8.31  metropolitan governmental units; 
  8.32     (5) a party or the party's representative appearing in a 
  8.33  proceeding before a state board, commission, or agency of the 
  8.34  executive branch unless the board, commission, or agency is 
  8.35  taking administrative action; 
  8.36     (6) an individual while engaged in selling goods or 
  9.1   services in an amount of $5,000,000 or less to be paid for by 
  9.2   public funds; 
  9.3      (7) a news medium or its employees or agents while engaged 
  9.4   in the publishing or broadcasting of news items, editorial 
  9.5   comments, or paid advertisements which directly or indirectly 
  9.6   urge official action; 
  9.7      (8) a paid expert witness whose testimony is requested by 
  9.8   the body before which the witness is appearing, but only to the 
  9.9   extent of preparing or delivering testimony; or 
  9.10     (9) a party or the party's representative appearing to 
  9.11  present a claim to the legislature and communicating to 
  9.12  legislators only by the filing of a claim form and supporting 
  9.13  documents and by appearing at public hearings on the claim. 
  9.14     Sec. 19.  [10A.035] [FORMER LEGISLATOR; LOBBYIST 
  9.15  RESTRICTION.] 
  9.16     For the period of one year after leaving office or 
  9.17  employment, a member of the legislature or an unclassified 
  9.18  executive branch employee may not act as a lobbyist as defined 
  9.19  in section 10A.01, subdivision 21, with regard to attempting to 
  9.20  influence legislative action. 
  9.21     Sec. 20.  Minnesota Statutes 1998, section 15.0591, 
  9.22  subdivision 2, is amended to read: 
  9.23     Subd. 2.  [BODIES AFFECTED.] A member meeting the 
  9.24  qualifications in subdivision 1 must be appointed to the 
  9.25  following boards, commissions, advisory councils, task forces, 
  9.26  or committees:  
  9.27     (1) advisory council on battered women; 
  9.28     (2) advisory task force on the use of state facilities; 
  9.29     (3) alcohol and other drug abuse advisory council; 
  9.30     (4) board of examiners for nursing home administrators; 
  9.31     (5) board on aging; 
  9.32     (6) chiropractic examiners board; 
  9.33     (7) consumer advisory council on vocational rehabilitation; 
  9.34     (8) council on disability; 
  9.35     (9) council on affairs of Chicano/Latino people; 
  9.36     (10) council on Black Minnesotans; 
 10.1      (11) dentistry board; 
 10.2      (12) department of economic security advisory council; 
 10.3      (13) higher education services office; 
 10.4      (14) housing finance agency; 
 10.5      (15) Indian advisory council on chemical dependency; 
 10.6      (16) medical practice board; 
 10.7      (17) medical policy directional task force on mental 
 10.8   health; 
 10.9      (18) Minnesota employment and economic development task 
 10.10  force; 
 10.11     (19) Minnesota office of citizenship and volunteer services 
 10.12  advisory committee; 
 10.13     (20) Minnesota state arts board; 
 10.14     (21) (20) nursing board; 
 10.15     (22) (21) optometry board; 
 10.16     (23) (22) pharmacy board; 
 10.17     (24) (23) physical therapists council; 
 10.18     (25) (24) podiatry board; 
 10.19     (26) (25) psychology board; 
 10.20     (27) (26) veterans advisory committee. 
 10.21     Sec. 21.  Minnesota Statutes 1998, section 15A.0815, 
 10.22  subdivision 2, is amended to read: 
 10.23     Subd. 2.  [GROUP I SALARY LIMITS.] The salaries for 
 10.24  positions in this subdivision may not exceed 85 75 percent of 
 10.25  the salary of the governor:  
 10.26     Commissioner of administration; 
 10.27     Commissioner of agriculture; 
 10.28     Commissioner of children, families, and learning; 
 10.29     Commissioner of commerce; 
 10.30     Commissioner of corrections; 
 10.31     Commissioner of economic security; 
 10.32     Commissioner of employee relations; 
 10.33     Commissioner of finance; 
 10.34     Commissioner of health; 
 10.35     Executive director, higher education services office; 
 10.36     Commissioner, housing finance agency; 
 11.1      Commissioner of human rights; 
 11.2      Commissioner of human services; 
 11.3      Executive director, state board of investment; 
 11.4      Commissioner of labor and industry; 
 11.5      Commissioner of natural resources; 
 11.6      Director of office of strategic and long-range planning; 
 11.7      Commissioner, pollution control agency; 
 11.8      Commissioner of public safety; 
 11.9      Commissioner, department of public service; 
 11.10     Commissioner of revenue; 
 11.11     Commissioner of trade and economic development; 
 11.12     Commissioner of transportation; and 
 11.13     Commissioner of veterans affairs. 
 11.14     Sec. 22.  Minnesota Statutes 1998, section 15A.0815, 
 11.15  subdivision 3, is amended to read: 
 11.16     Subd. 3.  [GROUP II SALARY LIMITS.] The salaries for 
 11.17  positions in this subdivision may not exceed 75 65 percent of 
 11.18  the salary of the governor: 
 11.19     Ombudsman for corrections; 
 11.20     Executive director of gambling control board; 
 11.21     Commissioner, iron range resources and rehabilitation 
 11.22  board; 
 11.23     Commissioner, bureau of mediation services; 
 11.24     Ombudsman for mental health and retardation; 
 11.25     Chair, metropolitan council; 
 11.26     Executive director of pari-mutuel racing; 
 11.27     Executive director, public employees retirement 
 11.28  association; 
 11.29     Commissioner, public utilities commission; 
 11.30     Executive director, state retirement system; and 
 11.31     Executive director, teachers retirement association. 
 11.32     Sec. 23.  Minnesota Statutes 1998, section 16A.10, is 
 11.33  amended by adding a subdivision to read: 
 11.34     Subd. 2a.  [INFORMATION TECHNOLOGY 
 11.35  PROJECTS.] Notwithstanding any law to the contrary, by November 
 11.36  30 of each even-numbered year, the commissioner must send the 
 12.1   chairs of the house of representatives ways and means committee 
 12.2   and the senate state government finance committee a list of all 
 12.3   agency requests for funding in the next biennium of information 
 12.4   and communication technology projects estimated to cost more 
 12.5   than $100,000. 
 12.6      Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 12.7   16A.103, subdivision 1, is amended to read: 
 12.8      Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
 12.9   February and November each year, the commissioner shall prepare 
 12.10  a forecast of state revenue and expenditures.  The November 
 12.11  forecast must be delivered to the legislature and governor no 
 12.12  later than the end of the first week of December.  The February 
 12.13  forecast must be delivered to the legislature and governor by 
 12.14  the end of February.  Forecasts must be delivered to the 
 12.15  legislature and governor on the same day.  If requested by the 
 12.16  legislative commission on planning and fiscal policy, delivery 
 12.17  to the legislature must include a presentation to the commission.
 12.18     Subd. 1a.  [FORECAST PARAMETERS.] The forecast must assume 
 12.19  the continuation of current laws and reasonable estimates of 
 12.20  projected growth in the national and state economies and 
 12.21  affected populations.  Revenue must be estimated for all sources 
 12.22  provided for in current law.  Expenditures must be estimated for 
 12.23  all obligations imposed by law and those projected to occur as a 
 12.24  result of inflation and variables outside the control of the 
 12.25  legislature.  The forecast must include a set aside amount that 
 12.26  reflects cost increases as a result of inflation in delivering 
 12.27  the current law level of services.  This amount may not exceed 
 12.28  the amount obtained by applying the Consumer Price Index to 
 12.29  those state expenditures that reflect payments for services at 
 12.30  the state or local level.  An amount to reflect increases in 
 12.31  providing services may not be applied to any appropriation for 
 12.32  which the law or process determining that appropriation amount 
 12.33  already includes a factor to reflect those cost increases. 
 12.34     Subd. 1b.  [FORECAST VARIABLE.] In determining the rate of 
 12.35  inflation, the application of inflation, the amount of state 
 12.36  bonding as it affects debt service, the calculation of 
 13.1   investment income, and the other variables to be included in the 
 13.2   expenditure part of the forecast, the commissioner must consult 
 13.3   with the chair chairs and lead minority members of the senate 
 13.4   state government finance committee, and the chair of the house 
 13.5   committee on ways and means committee, and house and 
 13.6   senate legislative fiscal staff.  This consultation must occur 
 13.7   at least six weeks before the forecast is to be released.  No 
 13.8   later than two weeks prior to the release of the forecast, the 
 13.9   commissioner must inform the chairs and lead minority members of 
 13.10  the senate state government finance committee and the house ways 
 13.11  and means committee, and legislative fiscal staff of any changes 
 13.12  in these variables from the previous forecast. 
 13.13     Subd. 1c.  [EXPENDITURE DATA.] State agencies must submit 
 13.14  any revisions in expenditure data the commissioner determines 
 13.15  necessary for the forecast to the commissioner at least four 
 13.16  weeks prior to the release of the forecast.  The information 
 13.17  submitted by state agencies and any modifications to that 
 13.18  information made by the commissioner must be made available to 
 13.19  legislative fiscal staff no later than three weeks prior to the 
 13.20  release of the forecast. 
 13.21     Subd. 1d.  [REVENUE DATA.] On a monthly basis, the 
 13.22  commissioner must provide legislative fiscal staff with an 
 13.23  update of the previous month's state revenues no later than 12 
 13.24  days after the end of that month. 
 13.25     Subd. 1e.  [ECONOMIC INFORMATION.] The commissioner must 
 13.26  review economic information including economic forecasts with 
 13.27  legislative fiscal staff no later than two weeks before the 
 13.28  forecast is released.  The commissioner must invite the chairs 
 13.29  and lead minority members of the senate state government finance 
 13.30  committee and the house ways and means committee, and 
 13.31  legislative fiscal staff to attend any meetings held with 
 13.32  outside economic advisors.  The commissioner must provide 
 13.33  legislative fiscal staff with monthly economic forecast 
 13.34  information received from outside sources. 
 13.35     Subd. 1f.  [PERSONAL INCOME.] In addition, the commissioner 
 13.36  shall forecast Minnesota personal income for each of the years 
 14.1   covered by the forecast and include these estimates in the 
 14.2   forecast documents. 
 14.3      Subd. 1g.  [PERIOD TO BE FORECAST.] A forecast prepared 
 14.4   during the first fiscal year of a biennium must cover that 
 14.5   biennium and the next biennium.  A forecast prepared during the 
 14.6   second fiscal year of a biennium must cover that biennium and 
 14.7   the next two bienniums. 
 14.8      Sec. 25.  Minnesota Statutes 1998, section 16A.11, 
 14.9   subdivision 3, is amended to read: 
 14.10     Subd. 3.  [PART TWO:  DETAILED BUDGET.] (a) Part two of the 
 14.11  budget, the detailed budget estimates both of expenditures and 
 14.12  revenues, must contain any statements on the financial plan 
 14.13  which the governor believes desirable or which may be required 
 14.14  by the legislature.  The detailed estimates shall include the 
 14.15  governor's budget arranged in tabular form. 
 14.16     (b) The detailed estimates must include a separate line 
 14.17  listing the total number of professional or technical service 
 14.18  contracts and the total cost of those contracts for the prior 
 14.19  biennium and the projected number of professional or technical 
 14.20  service contracts and the projected costs of those contracts for 
 14.21  the current and upcoming biennium.  They must also include a 
 14.22  summary of the personnel employed by the agency, reflected as 
 14.23  full-time equivalent positions, and the number of professional 
 14.24  or technical service consultants for the current biennium. 
 14.25     (c) The detailed estimates for internal service funds must 
 14.26  include the number of full-time equivalents by program; detail 
 14.27  on any loans from the general fund, including dollar amounts by 
 14.28  program; proposed investments in technology or equipment of 
 14.29  $100,000 or more; an explanation of any operating losses or 
 14.30  increases in retained earnings; and a history of the rates that 
 14.31  have been charged, with an explanation of any rate changes and 
 14.32  the impact of the rate changes on affected agencies. 
 14.33     Sec. 26.  Minnesota Statutes 1998, section 16A.124, is 
 14.34  amended by adding a subdivision to read: 
 14.35     Subd. 3a.  [SUPPLEMENTAL AGREEMENT.] If an agency submits a 
 14.36  supplemental agreement to an existing contract to the 
 15.1   commissioner of administration for approval, the commissioner of 
 15.2   administration must act on the supplemental agreement in time 
 15.3   for the agency to make payments to the vendor in the manner 
 15.4   required under this section. 
 15.5      Sec. 27.  Minnesota Statutes 1998, section 16A.126, 
 15.6   subdivision 2, is amended to read: 
 15.7      Subd. 2.  [IMMEDIATE NEEDS.] To reduce reserves for 
 15.8   unforeseen needs, and so reduce these rates, the commissioner 
 15.9   may transfer money from the general fund to a revolving fund.  
 15.10  Before doing so, the commissioner must decide there is not 
 15.11  enough money in the revolving fund for an immediate, necessary 
 15.12  expenditure.  The amount necessary to make the transfer is 
 15.13  appropriated from the general fund to the commissioner of 
 15.14  finance.  The commissioner shall report the amount and purpose 
 15.15  of the transfer to the chair of the committee or division in the 
 15.16  senate and house of representatives with primary jurisdiction 
 15.17  over the budget of the department of finance. 
 15.18     Sec. 28.  Minnesota Statutes 1999 Supplement, section 
 15.19  16A.129, subdivision 3, is amended to read: 
 15.20     Subd. 3.  [CASH ADVANCES.] When the operations of any 
 15.21  nongeneral fund account would be impeded by projected cash 
 15.22  deficiencies resulting from delays in the receipt of grants, 
 15.23  dedicated income, or other similar receivables, and when the 
 15.24  deficiencies would be corrected within the budget period 
 15.25  involved, the commissioner of finance may use general fund cash 
 15.26  reserves to meet cash demands.  If funds are transferred from 
 15.27  the general fund to meet cash flow needs, the cash flow 
 15.28  transfers must be returned to the general fund as soon as 
 15.29  sufficient cash balances are available in the account to which 
 15.30  the transfer was made.  The fund to which general fund cash was 
 15.31  advanced must pay interest on the cash advance at a rate 
 15.32  comparable to the rate earned by the state on invested 
 15.33  treasurer's cash, as determined monthly by the commissioner.  An 
 15.34  amount necessary to pay the interest is appropriated from the 
 15.35  nongeneral fund to which the cash advance was made.  Any 
 15.36  interest earned on general fund cash flow transfers accrues to 
 16.1   the general fund and not to the accounts or funds to which the 
 16.2   transfer was made.  The commissioner may advance general fund 
 16.3   cash reserves to nongeneral fund accounts where the receipts 
 16.4   from other governmental units cannot be collected within the 
 16.5   budget period. 
 16.6      Sec. 29.  [16A.145] [INFORMATION SYSTEMS PROJECTS.] 
 16.7      Before funds are spent or encumbered for an executive 
 16.8   agency information systems development project estimated to cost 
 16.9   more than $1,000,000, the commissioner of finance must ensure 
 16.10  that a source outside of state government has completed a risk 
 16.11  assessment for the project and that the results of the 
 16.12  assessment have been reported to the chairs of the house ways 
 16.13  and means and senate state government finance committees.  The 
 16.14  entity performing the risk assessment must not have a direct or 
 16.15  indirect financial interest in the project. 
 16.16     Sec. 30.  [16A.633] [CAPITAL FUNDING CONTINGENT ON 
 16.17  MAINTAINING DATA.] 
 16.18     Subdivision 1.  [STATE AGENCIES.] Each state agency shall 
 16.19  provide to the commissioner of administration the data necessary 
 16.20  for the commissioner to maintain the department's database on 
 16.21  the location, description, and condition of state-owned 
 16.22  facilities.  The data must be provided by December 15 each 
 16.23  year.  The commissioner of administration must maintain both the 
 16.24  current inventory data and historical data.  A state agency is 
 16.25  not eligible to receive capital funding unless the agency has 
 16.26  provided the data required. 
 16.27     Subd. 2.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
 16.28  board of trustees of the Minnesota state colleges and 
 16.29  universities shall establish and maintain data on the location, 
 16.30  description, and condition of board-owned facilities that is 
 16.31  comparable with the database established by the department of 
 16.32  administration.  The data must be updated annually and the board 
 16.33  must maintain both current inventory data and historical data.  
 16.34  The board is not eligible to receive capital funding unless the 
 16.35  board has established and maintains the data required. 
 16.36     Subd. 3.  [UNIVERSITY OF MINNESOTA.] The board of regents 
 17.1   of the University of Minnesota is requested to establish and 
 17.2   maintain data on the location, description, and condition of 
 17.3   university-owned facilities that is comparable with the database 
 17.4   established by the department of administration.  The university 
 17.5   is requested to update the data annually and maintain both 
 17.6   current inventory data and historical data.  The board of 
 17.7   regents is not eligible to receive capital funding unless the 
 17.8   board has established and maintains the data required. 
 17.9      Sec. 31.  [16A.6705] [LIMIT.] 
 17.10     (a) The commissioner may not issue bonds to provide money 
 17.11  for a project for which the legislature has appropriated more 
 17.12  than $5,000,000 unless a cost-benefit analysis has been 
 17.13  completed and shows a positive benefit to the public.  The 
 17.14  management analysis division of the department of administration 
 17.15  must perform or direct the performance of the analysis. 
 17.16     (b) All cost-benefit analysis documents under this section, 
 17.17  including preliminary drafts and notes, are public data. 
 17.18     (c) If a cost-benefit analysis does not show a positive 
 17.19  benefit to the public, the governor may issue bonds for the 
 17.20  project if a cost-effectiveness study has been done that shows a 
 17.21  proposed project is the most effective way to provide a 
 17.22  necessary public good compared to other means of accomplishing 
 17.23  the goals of legislation authorizing the appropriation. 
 17.24     (d) This section does not apply to projects that are in 
 17.25  response to a natural disaster if an emergency has been declared 
 17.26  by the governor. 
 17.27     Sec. 32.  Minnesota Statutes 1998, section 16B.052, is 
 17.28  amended to read: 
 17.29     16B.052 [AUTHORITY TO TRANSFER FUNDS.] 
 17.30     The commissioner may, with the approval of the commissioner 
 17.31  of finance, transfer from an internal service or enterprise fund 
 17.32  account to another internal service or enterprise fund account, 
 17.33  any contributed capital appropriated by the legislature.  The 
 17.34  transfer may be made only to provide working capital or positive 
 17.35  cash flow in the account to which the money is transferred.  The 
 17.36  commissioner shall report the amount and purpose of the transfer 
 18.1   to the chair of the committee or division in the senate and 
 18.2   house of representatives with primary jurisdiction over the 
 18.3   budget of the department of administration.  The transfer must 
 18.4   be repaid within 18 months.  
 18.5      Sec. 33.  Minnesota Statutes 1998, section 16B.31, is 
 18.6   amended by adding a subdivision to read: 
 18.7      Subd. 1a.  [DESIGN-BUILD PROHIBITION.] An agency may not 
 18.8   use a design-build method of project development and 
 18.9   construction.  For purposes of this subdivision: 
 18.10     (1) "design-build method" means a project delivery system 
 18.11  in which a single contractor is responsible for both the design 
 18.12  and construction of the project and in which the design and 
 18.13  construction are bid together; 
 18.14     (2) "agency" has the meaning defined in section 16B.01, and 
 18.15  includes the Minnesota state colleges and universities and any 
 18.16  agency to which the commissioner or other law has delegated 
 18.17  contracting authority. 
 18.18     Sec. 34.  Minnesota Statutes 1998, section 16B.335, 
 18.19  subdivision 5, is amended to read: 
 18.20     Subd. 5.  [INFORMATION TECHNOLOGY.] Agency requests for 
 18.21  construction and remodeling funds shall include money for 
 18.22  cost-effective information technology investments that would 
 18.23  enable an agency to reduce its need for office space, provide 
 18.24  more of its services electronically, and decentralize its 
 18.25  operations.  The office of technology must review and approve 
 18.26  the information technology portion of construction and major 
 18.27  remodeling program plans before the plans are submitted to the 
 18.28  chairs of the senate finance committee and the house of 
 18.29  representatives ways and means committee for their 
 18.30  recommendations and the chair of the house of representatives 
 18.31  capital investment committee is notified as required by 
 18.32  subdivision 1. 
 18.33     Sec. 35.  Minnesota Statutes 1998, section 16B.42, 
 18.34  subdivision 2, is amended to read: 
 18.35     Subd. 2.  [DUTIES.] The council shall:  assist state and 
 18.36  local agencies in developing and updating intergovernmental 
 19.1   information systems; facilitate participation of users during 
 19.2   the development of major revisions of intergovernmental 
 19.3   information systems; review intergovernmental information and 
 19.4   computer systems involving intergovernmental funding; encourage 
 19.5   cooperative efforts among state and local governments in 
 19.6   developing intergovernmental information systems; present local 
 19.7   government concerns to state government and state government 
 19.8   concerns to local government with respect to intergovernmental 
 19.9   information systems; develop and recommend standards and 
 19.10  policies for intergovernmental information systems to the office 
 19.11  of technology; foster the efficient use of available federal, 
 19.12  state, local, and private resources for the development of 
 19.13  intergovernmental systems; keep government agencies abreast of 
 19.14  the state of the art in information systems; prepare guidelines 
 19.15  for intergovernmental systems; assist the commissioner of 
 19.16  administration in the development of cooperative contracts for 
 19.17  the purchase of information system equipment and software; and 
 19.18  assist the legislature by providing advice on intergovernmental 
 19.19  information systems issues. 
 19.20     Sec. 36.  Minnesota Statutes 1998, section 16B.42, 
 19.21  subdivision 3, is amended to read: 
 19.22     Subd. 3.  [OTHER DUTIES.] The intergovernmental 
 19.23  informations systems advisory council shall (1) recommend to the 
 19.24  commissioners of state departments, the legislative auditor, and 
 19.25  the state auditor a method for the expeditious gathering and 
 19.26  reporting of information and data between agencies and units of 
 19.27  local government in accordance with cooperatively developed 
 19.28  standards; (2) elect an executive committee, not to exceed seven 
 19.29  members from its membership; (3) develop an annual plan, to 
 19.30  include administration and evaluation of grants, in compliance 
 19.31  with applicable rules; (4) provide technical information systems 
 19.32  assistance or guidance to local governments for development, 
 19.33  implementation, and modification of automated systems, including 
 19.34  formation of consortiums for those systems; (5) appoint 
 19.35  committees and task forces, which may include persons other than 
 19.36  council members, to assist the council in carrying out its 
 20.1   duties; (6) select an executive director to serve the council 
 20.2   and may employ other employees it deems necessary, all of whom 
 20.3   are in the classified service of the state civil service; and (7)
 20.4   may contract for professional and other similar services on 
 20.5   terms it deems desirable; and (8) work with the office of 
 20.6   technology to ensure that information systems developed by state 
 20.7   agencies that impact local government will be reviewed by the 
 20.8   council. 
 20.9      Sec. 37.  Minnesota Statutes 1998, section 16B.48, 
 20.10  subdivision 4, is amended to read: 
 20.11     Subd. 4.  [REIMBURSEMENTS.] Except as specifically provided 
 20.12  otherwise by law, each agency shall reimburse intertechnologies 
 20.13  and general services revolving funds for the cost of all 
 20.14  services, supplies, materials, labor, and depreciation of 
 20.15  equipment, including reasonable overhead costs, which the 
 20.16  commissioner is authorized and directed to furnish an agency.  
 20.17  The cost of all publications or other materials produced by the 
 20.18  commissioner and financed from the general services revolving 
 20.19  fund must include reasonable overhead costs.  The commissioner 
 20.20  of administration shall report the rates to be charged for each 
 20.21  revolving fund no later than July 1 each year to the chair of 
 20.22  the committee or division in the senate and house of 
 20.23  representatives with primary jurisdiction over the budget of the 
 20.24  department of administration.  The commissioner of finance shall 
 20.25  make appropriate transfers to the revolving funds described in 
 20.26  this section when requested by the commissioner of 
 20.27  administration.  The commissioner of administration may make 
 20.28  allotments, encumbrances, and, with the approval of the 
 20.29  commissioner of finance, disbursements in anticipation of such 
 20.30  transfers.  In addition, the commissioner of administration, 
 20.31  with the approval of the commissioner of finance, may require an 
 20.32  agency to make advance payments to the revolving funds in this 
 20.33  section sufficient to cover the agency's estimated obligation 
 20.34  for a period of at least 60 days.  All reimbursements and other 
 20.35  money received by the commissioner of administration under this 
 20.36  section must be deposited in the appropriate revolving fund.  
 21.1   Any earnings remaining in the fund established to account for 
 21.2   the documents service prescribed by section 16B.51 at the end of 
 21.3   each fiscal year not otherwise needed for present or future 
 21.4   operations, as determined by the commissioners of administration 
 21.5   and finance, must be transferred to the general fund.  
 21.6      Sec. 38.  Minnesota Statutes 1998, section 16B.485, is 
 21.7   amended to read: 
 21.8      16B.485 [INTERFUND LOANS.] 
 21.9      The commissioner may, with the approval of the commissioner 
 21.10  of finance, make loans from an internal service or enterprise 
 21.11  fund to another internal service or enterprise fund, and the 
 21.12  amount necessary is appropriated from the fund that makes the 
 21.13  loan.  The commissioner shall report the amount and purpose of 
 21.14  the loan to the chair of the committee or division in the senate 
 21.15  and house of representatives with primary jurisdiction over the 
 21.16  budget of the department of administration.  The term of a loan 
 21.17  made under this section must be not more than 24 months. 
 21.18     Sec. 39.  Minnesota Statutes 1999 Supplement, section 
 21.19  16B.616, subdivision 3, is amended to read: 
 21.20     Subd. 3.  [SAFETY REQUIREMENTS.] In places of public 
 21.21  accommodation using bleacher seating, all bleachers or bleacher 
 21.22  open spaces over 30 55 inches above grade or the floor below, 
 21.23  and all bleacher guardrails if any part of the guardrail is over 
 21.24  55 inches above grade or the floor below must conform to the 
 21.25  following safety requirements: 
 21.26     (1) the open space between bleacher footboards, seats, and 
 21.27  guardrails must not exceed four inches, unless approved safety 
 21.28  nets are installed, except that bleachers already in existence 
 21.29  as of August 1, 2001, with open spaces not exceeding nine 
 21.30  inches, are exempt from the requirement of this clause; 
 21.31     (2) bleachers must have vertical perimeter guardrails with 
 21.32  no more than four-inch rail spacing between vertical rails or 
 21.33  other approved guardrails that address climbability and are 
 21.34  designed to prevent accidents; and 
 21.35     (3) the state building official shall determine whether the 
 21.36  safety nets and guardrail climbability meet the requirements of 
 22.1   the alternate design section of the State Building Code.  All 
 22.2   new bleachers manufactured, installed, sold, or distributed 
 22.3   after January August 1, 2001, must comply with the State 
 22.4   Building Code in effect and clauses (1), (2), and (3) this 
 22.5   subdivision. 
 22.6      Sec. 40.  Minnesota Statutes 1999 Supplement, section 
 22.7   16B.616, subdivision 4, is amended to read: 
 22.8      Subd. 4.  [ENFORCEMENT.] (a) A statutory or home rule 
 22.9   charter city that is not covered by the code because of action 
 22.10  taken under section 16B.72 or 16B.73 is responsible for 
 22.11  enforcement in the city of the code's requirements for bleacher 
 22.12  safety.  In all other areas where the code does not apply 
 22.13  because of action taken under section 16B.72 or 16B.73, the 
 22.14  county is responsible for enforcement of those requirements. 
 22.15     (b) Municipalities that have not adopted the code may 
 22.16  enforce the code requirements for bleacher safety by either 
 22.17  entering into a joint powers agreement for enforcement with 
 22.18  another municipality that has adopted the code or contracting 
 22.19  for enforcement with a qualified and certified building official 
 22.20  or state licensed design professional to enforce the code. 
 22.21     (c) Municipalities, school districts, organizations, 
 22.22  individuals, and other persons operating or owning places of 
 22.23  public accommodation with bleachers that are subject to the 
 22.24  safety requirements in subdivision 3 shall provide a signed 
 22.25  certification of compliance to the commissioner by January 1, 
 22.26  2001 2002.  The certification shall be prepared by a qualified 
 22.27  and certified building official or state licensed design 
 22.28  professional and shall certify that the bleachers have been 
 22.29  inspected and are in compliance with the requirements of this 
 22.30  section and are structurally sound.  For bleachers owned by a 
 22.31  school district, the person the district designates to be 
 22.32  responsible for buildings and grounds may make the certification.
 22.33     Sec. 41.  Minnesota Statutes 1998, section 43A.38, 
 22.34  subdivision 1, is amended to read: 
 22.35     Subdivision 1.  [DEFINITIONS.] For the purpose of this 
 22.36  section the following definitions shall apply: 
 23.1      (a) "Business" means any corporation, partnership, 
 23.2   proprietorship, firm, enterprise, franchise, association, 
 23.3   organization, self-employed individual or any other legal entity 
 23.4   which engages either in nonprofit or profit making activities. 
 23.5      (b) "Confidential information" means any information 
 23.6   obtained under government authority which has not become part of 
 23.7   the body of public information and which, if released 
 23.8   prematurely or in nonsummary form, may provide unfair economic 
 23.9   advantage or adversely affect the competitive position of an 
 23.10  individual or a business. 
 23.11     (c) "Employee in the executive branch" means an employee as 
 23.12  defined in section 43A.02, subdivision 21, and executive branch 
 23.13  constitutional officers. 
 23.14     (d) "Private interest" means any interest, including but 
 23.15  not limited to a financial interest, which pertains to a person 
 23.16  or business whereby the person or business would gain a benefit, 
 23.17  privilege, exemption or advantage from the action of a state 
 23.18  agency or employee that is not available to the general public. 
 23.19     Sec. 42.  [43A.50] [PROPOSALS.] 
 23.20     Subdivision 1.  [PROGRAM ESTABLISHMENT.] The commissioner 
 23.21  shall establish and promote a program to solicit proposals from 
 23.22  state employees and former state employees for ways to reduce 
 23.23  the cost of operating state government or for ways of providing 
 23.24  the state better or more efficient service.  The program must 
 23.25  include potential for sharing savings with an employee, former 
 23.26  employee, or group of current or former employees whose proposal 
 23.27  results in a cost savings to the state.  For purposes of this 
 23.28  section, state "employee" has the meaning defined in section 
 23.29  43A.02, subdivision 21. 
 23.30     Subd. 2.  [PROCESS.] (a) A state employee, former state 
 23.31  employee, or a group of state employees or former state 
 23.32  employees may submit a proposal to the commissioner for reducing 
 23.33  the cost of operating state government or for providing the 
 23.34  state better or more efficient service.  The commissioner may 
 23.35  develop a recommended form for submission of proposals. 
 23.36     (b) The commissioner must decide how to act on each 
 24.1   proposal.  The commissioner must determine which proposals 
 24.2   warrant consideration for award of shared savings payments.  In 
 24.3   making a determination, the commissioner must consider: 
 24.4      (1) the potential for significant, measurable savings; 
 24.5      (2) the extent to which the proposal goes beyond common 
 24.6   ideas for reducing expenditures; 
 24.7      (3) the extent to which the proposal has the potential to 
 24.8   reduce expenditures without reducing the quality or level of 
 24.9   service that is contemplated by the law establishing the 
 24.10  program; 
 24.11     (4) the extent to which people affected by the service are 
 24.12  likely to support the proposal, and the potential for including 
 24.13  input from affected people in the implementation of the proposal.
 24.14     (c) If the commissioner determines a proposal does not 
 24.15  warrant consideration for a shared savings plan, the 
 24.16  commissioner shall forward the proposal to the appropriate state 
 24.17  agency for its review and comment.  If the commissioner 
 24.18  determines a proposal warrants further consideration for shared 
 24.19  savings payments, the commissioner shall seek review and 
 24.20  comments from the appropriate state agency to further analyze 
 24.21  the feasibility of the proposal and the extent to which the 
 24.22  potential savings could be measured. 
 24.23     Subd. 3.  [SHARED SAVINGS PLANS.] (a) An approved shared 
 24.24  savings plan must contain the following elements: 
 24.25     (1) a plan to reduce state government costs; 
 24.26     (2) a method of documenting reduction in costs attributable 
 24.27  to the plan; 
 24.28     (3) an agreement that a specified percentage of documented 
 24.29  net cost savings over a prescribed period of time will be 
 24.30  shared, in the form of a one-time payment, with employees or 
 24.31  former employees who suggested the plan. 
 24.32     (b) In approving a shared savings plan, the commissioner 
 24.33  shall use the following guidelines in determining the amount of 
 24.34  net savings proposed to be shared: 
 24.35  Projected Annual Savings     Amount to be shared
 24.36  $0 to $1,000              20 percent, not to exceed $150
 25.1   $1,001 to $10,000         15 percent, not to exceed $1,000
 25.2   $10,001 to $100,000       10 percent, not to exceed $7,500
 25.3   $100,001 to $500,000      7.5 percent, not to exceed $25,000
 25.4   $500,001 to $1 million    5 percent, not to exceed $37,500
 25.5   Over $1 million           3.75 percent, not to exceed $100,000
 25.6      The percentage to be shared applies only to the first full 
 25.7   year of net savings after the proposal has been fully 
 25.8   implemented. 
 25.9      (c) A state employee who is represented by an exclusive 
 25.10  representative may not receive payments under a shared savings 
 25.11  plan except as provided in a collective bargaining agreement. 
 25.12     Subd. 4.  [SHARED SAVINGS PAYMENTS.] (a) Shared savings 
 25.13  payments may be made only when the commissioner determines that 
 25.14  a proposal has been implemented and that the projected savings 
 25.15  under the shared savings plan have been realized.  This 
 25.16  determination, and the calculation of the amount of savings to 
 25.17  be shared, is at the sole discretion of the commissioner. 
 25.18     (b) Shared savings payments must be made from funds 
 25.19  appropriated for the operation of the agency program that is the 
 25.20  subject of the shared savings plan.  Shared savings payments 
 25.21  under this section are a permissible use of an appropriation for 
 25.22  operation of an agency program.  
 25.23     (c) Shared savings payments may not be made to persons who 
 25.24  are covered by the managerial plan established in section 
 25.25  43A.18, subdivision 3, or the excluded administrators plan 
 25.26  established in section 43A.18, subdivision 3a, unless the 
 25.27  commissioner determines that the proposal involves matters that 
 25.28  are outside the scope of the manager's normal job duties.  A 
 25.29  legislator, constitutional officer, judge, or commissioner of an 
 25.30  agency listed in section 15.06, subdivision 1, may not make a 
 25.31  shared savings proposal and may not receive shared savings 
 25.32  payments, but persons who formerly served in these positions may 
 25.33  make proposals and receive shared savings payments. 
 25.34     Subd. 5.  [AGENCY COOPERATION.] Upon request of the 
 25.35  commissioner, a state agency must cooperate with the 
 25.36  commissioner in administration of the suggestion and shared 
 26.1   savings program.  Requested cooperation may include: 
 26.2      (1) assisting the commissioner in analyzing the merits of a 
 26.3   suggestion; 
 26.4      (2) explaining to the commissioner how a suggestion has 
 26.5   been implemented, or why it is not feasible or desirable to 
 26.6   implement a suggestion, whether or not the suggestion results in 
 26.7   a shared savings plan; and 
 26.8      (3) assisting the commissioner in the design and 
 26.9   implementation of a shared savings plan. 
 26.10     Subd. 6.  [DATA PRACTICES.] The name of an employee or 
 26.11  former employee submitting a suggestion to the commissioner is 
 26.12  private data on individuals.  However, the person's name becomes 
 26.13  public data when a shared savings plan is approved by the 
 26.14  commissioner.  The commissioner must notify affected people who 
 26.15  wish to participate in a shared savings plan that their names 
 26.16  will become public if the plan is approved. 
 26.17     Subd. 7.  [REPORT.] The commissioner shall report annually 
 26.18  to the legislature on the implementation of this section.  The 
 26.19  reports must summarize the proposals submitted, the 
 26.20  commissioner's action on each proposal, and the affected state 
 26.21  agency's action on each proposal. 
 26.22     Sec. 43.  Minnesota Statutes 1998, section 85A.02, 
 26.23  subdivision 5a, is amended to read: 
 26.24     Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
 26.25  administrator who shall serve as the executive secretary and 
 26.26  principal administrative officer of the board and, subject to 
 26.27  its approval, shall operate the Minnesota zoological garden and 
 26.28  enforce all rules and policy decisions of the board.  The 
 26.29  administrator must be chosen solely on the basis of training, 
 26.30  experience, and other qualifications appropriate to the field of 
 26.31  zoo management and development.  The board shall set the salary 
 26.32  of the administrator.  The salary of the administrator may not 
 26.33  exceed 85 percent of the salary of the governor; however, any 
 26.34  amount exceeding 65 percent of the salary of the governor must 
 26.35  consist of nonstate funds.  The administrator shall perform 
 26.36  duties assigned by the board and serves in the unclassified 
 27.1   service at the pleasure of the board.  The administrator, with 
 27.2   the participation of the board, shall appoint a development 
 27.3   director in the unclassified service or contract with a 
 27.4   development consultant to establish mechanisms to foster 
 27.5   community participation in and community support for the 
 27.6   Minnesota zoological garden.  The board may employ other 
 27.7   necessary professional, technical, and clerical personnel.  
 27.8   Employees of the zoological garden are eligible for salary 
 27.9   supplement in the same manner as employees of other state 
 27.10  agencies.  The commissioner of finance shall determine the 
 27.11  amount of salary supplement based on available funds. 
 27.12     (b) The board may contract with individuals to perform 
 27.13  professional services and may contract for the purchases of 
 27.14  necessary species exhibits, supplies, services, and equipment. 
 27.15  The board may also contract for the construction and operation 
 27.16  of entertainment facilities on the zoo grounds that are not 
 27.17  directly connected to ordinary functions of the zoological 
 27.18  garden.  The zoo board may not enter into a final agreement for 
 27.19  construction of an entertainment facility that is not directly 
 27.20  connected to the ordinary functions of the zoo until after final 
 27.21  construction plans have been submitted to the chairs of the 
 27.22  senate finance and house appropriations committees for their 
 27.23  recommendations. 
 27.24     The zoo may not contract for entertainment during the 
 27.25  period of the Minnesota state fair that would directly compete 
 27.26  with entertainment at the Minnesota state fair. 
 27.27     Sec. 44.  Minnesota Statutes 1998, section 119A.05, 
 27.28  subdivision 1, is amended to read: 
 27.29     Subdivision 1.  [AUTHORITY FOR FUNDING CONSOLIDATION.] 
 27.30  Notwithstanding existing law governing allocation of funds by 
 27.31  local grantees, mode of service delivery, grantee planning and 
 27.32  reporting requirements, and other procedural requirements for 
 27.33  the grant programs identified in this section, a local grantee 
 27.34  may elect to consolidate all or a portion of funding received 
 27.35  from the programs under subdivision 5 in a collaboration funding 
 27.36  plan, if all conditions specified in this section are 
 28.1   satisfied.  County boards, school boards, or governing boards of 
 28.2   other grantees may elect not to consolidate funding for a 
 28.3   program.  
 28.4      For grantees electing consolidation, the commissioner may, 
 28.5   with the approval of the board of government innovation and 
 28.6   cooperation, waive all provisions of rules inconsistent with the 
 28.7   intent of this section.  This waiver authority does not apply to 
 28.8   rules governing client protections, due process, or inclusion of 
 28.9   clients, parents, cultures, and ethnicities in decision making.  
 28.10  Funding to a local grantee must be determined according to the 
 28.11  funding formulas or allocation rules governing the individual 
 28.12  programs listed in section 119A.04.  
 28.13     Sec. 45.  Minnesota Statutes 1999 Supplement, section 
 28.14  125B.21, subdivision 1, is amended to read: 
 28.15     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
 28.16  of the Minnesota education telecommunications council 
 28.17  established in Laws 1993, First Special Session chapter 2, is 
 28.18  expanded to include representatives of elementary and secondary 
 28.19  education.  The membership shall consist of three 
 28.20  representatives from the University of Minnesota; three 
 28.21  representatives of the board of trustees for Minnesota state 
 28.22  colleges and universities; one representative of the higher 
 28.23  education services offices; one representative appointed by the 
 28.24  private college council; one representative selected by the 
 28.25  commissioner of administration; eight representatives selected 
 28.26  by the commissioner of children, families, and learning, at 
 28.27  least one of which must come from each of the six higher 
 28.28  education telecommunication regions; a representative from the 
 28.29  office of technology; two members each from the senate and the 
 28.30  house of representatives selected by the subcommittee on 
 28.31  committees of the committee on rules and administration of the 
 28.32  senate and the speaker of the house, one member from each body 
 28.33  must be a member of the minority party; and three 
 28.34  representatives of libraries, one representing regional public 
 28.35  libraries, one representing multitype libraries, and one 
 28.36  representing community libraries, selected by the governor.  The 
 29.1   council shall: 
 29.2      (1) develop a statewide vision and plans for the use of 
 29.3   distance learning technologies and provide leadership in 
 29.4   implementing the use of such technologies; 
 29.5      (2) recommend educational policy relating to 
 29.6   telecommunications; 
 29.7      (3) determine priorities for use; 
 29.8      (4) oversee coordination of networks for post-secondary 
 29.9   campuses, kindergarten through grade 12 education, and regional 
 29.10  and community libraries; 
 29.11     (5) review application for telecommunications access grants 
 29.12  under Minnesota Statutes, section 125B.20, and recommend to the 
 29.13  department grants for funding; 
 29.14     (6) determine priorities for grant funding proposals; and 
 29.15     (7) work with the information policy office to ensure 
 29.16  consistency of the operation of the learning network with 
 29.17  standards of an open system architecture. 
 29.18     The council shall consult with representatives of the 
 29.19  telecommunication industry in implementing this section. 
 29.20     Sec. 46.  Minnesota Statutes 1998, section 138.17, 
 29.21  subdivision 10, is amended to read: 
 29.22     Subd. 10.  [OPTICAL IMAGE STORAGE.] (a) Any government 
 29.23  record, including a record with archival value, may be 
 29.24  transferred to and stored on a nonerasable optical imaging 
 29.25  system and retained only in that format, if the requirements of 
 29.26  this section are met. 
 29.27     (b) All documents preserved on nonerasable optical imaging 
 29.28  systems must meet standards for permanent records specified in 
 29.29  section 15.17, subdivision 1, and must be kept available for 
 29.30  retrieval so long as any law requires.  Standards under section 
 29.31  15.17, subdivision 1, may not be inconsistent with efficient use 
 29.32  of optical imaging systems. 
 29.33     (c) A government entity storing a record on an optical 
 29.34  imaging system shall create and store a backup copy of the 
 29.35  record at a site other than the site where the original is 
 29.36  kept.  The government entity shall retain the backup copy and 
 30.1   operable retrieval equipment so long as any law requires the 
 30.2   original to be retained.  The backup copy required by this 
 30.3   paragraph must be preserved either (1) on a nonerasable optical 
 30.4   imaging system; or (2) by another reproduction method approved 
 30.5   by the records disposition panel. 
 30.6      (d) All contracts for the purchase of optical imaging 
 30.7   systems used pursuant to this chapter shall contain terms that 
 30.8   insure continued retrievability of the optically stored images 
 30.9   and conform to any guidelines that may be established by the 
 30.10  office of technology of the department of administration for 
 30.11  perpetuation of access to stored data. 
 30.12     Sec. 47.  Minnesota Statutes 1999 Supplement, section 
 30.13  179A.04, subdivision 3, is amended to read: 
 30.14     Subd. 3.  [OTHER DUTIES.] (a) The commissioner shall:  
 30.15     (1) provide mediation services as requested by the parties 
 30.16  until the parties reach agreement, and may continue to assist 
 30.17  parties after they have submitted their final positions for 
 30.18  interest arbitration; 
 30.19     (2) issue notices, subpoenas, and orders required by law to 
 30.20  carry out duties under sections 179A.01 to 179A.25; 
 30.21     (3) assist the parties in formulating petitions, notices, 
 30.22  and other papers required to be filed with the commissioner; 
 30.23     (4) conduct elections; 
 30.24     (5) certify the final results of any election or other 
 30.25  voting procedure conducted under sections 179A.01 to 179A.25; 
 30.26     (6) adopt rules relating to the administration of this 
 30.27  chapter and the conduct of hearings and elections; 
 30.28     (7) receive, catalogue, file, and make available to the 
 30.29  public all decisions of arbitrators and panels authorized by 
 30.30  sections 179A.01 to 179A.25, all grievance arbitration 
 30.31  decisions, and the commissioner's orders and decisions; 
 30.32     (8) adopt, subject to chapter 14, a grievance procedure 
 30.33  that fulfills the purposes of section 179A.20, subdivision 4, 
 30.34  does not provide for the services of the bureau of mediation 
 30.35  services and that is available to any employee in a unit not 
 30.36  covered by a contractual grievance procedure; 
 31.1      (9) maintain a schedule of state employee classifications 
 31.2   or positions assigned to each unit established in section 
 31.3   179A.10, subdivision 2; 
 31.4      (10) collect fees established by rule for empanelment of 
 31.5   persons on the labor arbitrator roster maintained by the 
 31.6   commissioner or in conjunction with fair share fee challenges; 
 31.7      (11) provide technical support and assistance to voluntary 
 31.8   joint labor-management committees established for the purpose of 
 31.9   improving relationships between exclusive representatives and 
 31.10  employers, at the discretion of the commissioner; 
 31.11     (12) provide to the parties a list of arbitrators as 
 31.12  required by section 179A.16, subdivision 4; and 
 31.13     (13) maintain a list of up to 60 arbitrators for referral 
 31.14  to employers and exclusive representatives for the resolution of 
 31.15  grievance or interest disputes.  Each person on the list must be 
 31.16  knowledgeable about collective bargaining and labor relations in 
 31.17  the public sector, well versed in state and federal labor law, 
 31.18  and experienced in and knowledgeable about labor arbitration.  
 31.19  To the extent practicable, the commissioner shall appoint 
 31.20  members to the list so that the list is gender and racially 
 31.21  diverse. 
 31.22     (b) From the names provided by representative 
 31.23  organizations, the commissioner shall maintain a list of 
 31.24  arbitrators to conduct teacher discharge or termination hearings 
 31.25  according to section 122A.40 or 122A.41.  The persons on the 
 31.26  list must meet at least one of the following requirements: 
 31.27     (1) be a former or retired judge; 
 31.28     (2) be a qualified arbitrator on the list maintained by the 
 31.29  bureau; 
 31.30     (3) be a present, former, or retired administrative law 
 31.31  judge; or 
 31.32     (4) be a neutral individual who is learned in the law and 
 31.33  admitted to practice in Minnesota, who is qualified by 
 31.34  experience to conduct these hearings, and who is without bias to 
 31.35  either party. 
 31.36     Each year, education Minnesota shall provide a list of up 
 32.1   to 14 names and the Minnesota school boards association a list 
 32.2   of up to 14 names of persons to be on the list.  The 
 32.3   commissioner may adopt rules about maintaining and updating the 
 32.4   list. 
 32.5      Sec. 48.  Minnesota Statutes 1998, section 179A.18, 
 32.6   subdivision 1, is amended to read: 
 32.7      Subdivision 1.  [WHEN AUTHORIZED.] Essential employees may 
 32.8   not strike.  Except as otherwise provided by subdivision 2 and 
 32.9   section 179A.17, subdivision 2, other public employees may 
 32.10  strike only under the following circumstances:  
 32.11     (1)(a) the collective bargaining agreement between their 
 32.12  exclusive representative and their employer has expired or, if 
 32.13  there is no agreement, impasse under section 179A.17, 
 32.14  subdivision 2, has occurred; and 
 32.15     (b) the exclusive representative and the employer have 
 32.16  participated in mediation over a period of at least 45 days, 
 32.17  provided that the mediation period established by section 
 32.18  179A.17, subdivision 2, governs negotiations under that section, 
 32.19  and provided that for the purposes of this subclause the 
 32.20  mediation period commences on the day following receipt by the 
 32.21  commissioner of a request for mediation; or 
 32.22     (2) the employer violates section 179A.13, subdivision 2, 
 32.23  clause (9); or 
 32.24     (3) in the case of state employees, 
 32.25     (a) the legislative coordinating commission on employee 
 32.26  relations has rejected a negotiated agreement or arbitration 
 32.27  decision during a legislative interim; or 
 32.28     (b) the entire legislature rejects or fails to ratify a 
 32.29  negotiated agreement or arbitration decision, which has been 
 32.30  approved during a legislative interim by the legislative 
 32.31  coordinating commission on employee relations, at a special 
 32.32  legislative session called to consider it, or at its next 
 32.33  regular legislative session, whichever occurs first.  
 32.34     Sec. 49.  Minnesota Statutes 1998, section 181.932, 
 32.35  subdivision 1, is amended to read: 
 32.36     Subdivision 1.  [PROHIBITED ACTION.] An employer shall not 
 33.1   discharge, discipline, threaten, otherwise discriminate against, 
 33.2   or penalize an employee regarding the employee's compensation, 
 33.3   terms, conditions, location, or privileges of employment because:
 33.4      (a) the employee, or a person acting on behalf of an 
 33.5   employee, in good faith, reports a violation or suspected 
 33.6   violation of any federal or state law or rule adopted pursuant 
 33.7   to law to an employer or to any governmental body or law 
 33.8   enforcement official; 
 33.9      (b) the employee is requested by a public body or office to 
 33.10  participate in an investigation, hearing, inquiry; 
 33.11     (c) the employee refuses an employer's order to perform an 
 33.12  action that the employee has an objective basis in fact to 
 33.13  believe violates any state or federal law or rule or regulation 
 33.14  adopted pursuant to law, and the employee informs the employer 
 33.15  that the order is being refused for that reason; or 
 33.16     (d) the employee, in good faith, reports a situation in 
 33.17  which the quality of health care services provided by a health 
 33.18  care facility, organization, or health care provider violates a 
 33.19  standard established by federal or state law or a professionally 
 33.20  recognized national clinical or ethical standard and potentially 
 33.21  places the public at risk of harm; or 
 33.22     (e) a state employee or former state employee submits a 
 33.23  proposal to the commissioner of employee relations under section 
 33.24  43A.50. 
 33.25     Sec. 50.  Minnesota Statutes 1999 Supplement, section 
 33.26  181.932, subdivision 2, is amended to read: 
 33.27     Subd. 2.  [DISCLOSURE OF IDENTITY.] The identity of any 
 33.28  employee making a report to a governmental body or law 
 33.29  enforcement official under subdivision 1, clause (a) or (d), is 
 33.30  private data on individuals as defined in section 13.02.  The 
 33.31  identity of a state employee or former state employee submitting 
 33.32  a proposal under subdivision 1, clause (e), is private data on 
 33.33  individuals to the extent provided in section 43A.50.  The 
 33.34  identity of an employee providing information under subdivision 
 33.35  1, clause (b), is private data on individuals if: 
 33.36     (1) the employee would not have provided the information 
 34.1   without an assurance that the employee's identity would remain 
 34.2   private, because of a concern that the employer would commit an 
 34.3   action prohibited under subdivision 1 or that the employee would 
 34.4   be subject to some other form of retaliation; or 
 34.5      (2) the state agency, statewide system, or political 
 34.6   subdivision reasonably believes that the employee would not have 
 34.7   provided the data because of that concern.  
 34.8      If the disclosure is necessary for prosecution, the 
 34.9   identity of the employee may be disclosed but the employee shall 
 34.10  be informed prior to the disclosure. 
 34.11     Sec. 51.  Minnesota Statutes 1998, section 193.143, is 
 34.12  amended to read: 
 34.13     193.143 [STATE ARMORY BUILDING COMMISSION, POWERS.] 
 34.14     Such corporation, subject to the conditions and limitations 
 34.15  prescribed in sections 193.141 to 193.149, shall possess all the 
 34.16  powers of a body corporate necessary and convenient to 
 34.17  accomplish the objectives and perform the duties prescribed by 
 34.18  sections 193.141 to 193.149, including the following, which 
 34.19  shall not be construed as a limitation upon the general powers 
 34.20  hereby conferred: 
 34.21     (1) To acquire by lease, purchase, gift, or condemnation 
 34.22  proceedings all necessary right, title, and interest in and to 
 34.23  the lands required for a site for a new armory and all other 
 34.24  real or personal property required for the purposes contemplated 
 34.25  by the Military Code and to hold and dispose of the same, 
 34.26  subject to the conditions and limitations herein prescribed; 
 34.27  provided that any such real or personal property or interest 
 34.28  therein may be so acquired or accepted subject to any condition 
 34.29  which may be imposed thereon by the grantor or donor and agreed 
 34.30  to by such corporation not inconsistent with the proper use of 
 34.31  such property by the state for armory or military purposes as 
 34.32  herein provided. 
 34.33     (2) To exercise the right of eminent domain in the manner 
 34.34  provided by chapter 117, for the purpose of acquiring any 
 34.35  property which such corporation is herein authorized to acquire 
 34.36  by condemnation; provided, that the corporation may take 
 35.1   possession of any such property so to be acquired at any time 
 35.2   after the filing of the petition describing the same in 
 35.3   condemnation proceedings; provided further, that this shall not 
 35.4   preclude the corporation from abandoning the condemnation of any 
 35.5   such property in any case where possession thereof has not been 
 35.6   taken. 
 35.7      (3) To construct and equip new armories as authorized 
 35.8   herein; to pay therefor out of the funds obtained as hereinafter 
 35.9   provided and to hold, manage, and dispose of such armory, 
 35.10  equipment, and site as hereinafter provided.  The total amount 
 35.11  of bonds issued on account of such armories shall not exceed the 
 35.12  amount of the cost thereof; provided also, that the total bonded 
 35.13  indebtedness of the commission shall not at any time exceed the 
 35.14  aggregate sum of $7,000,000 $15,000,000. 
 35.15     (4) To enter into partnerships with federal and state 
 35.16  governments and to match federal and local funds, when available.
 35.17     (5) To sue and be sued. 
 35.18     (5) (6) To contract and be contracted with in any matter 
 35.19  connected with any purpose or activity within the powers of such 
 35.20  corporations as herein specified; provided, that no officer or 
 35.21  member of such corporation shall be personally interested, 
 35.22  directly or indirectly, in any contract in which such 
 35.23  corporation is interested. 
 35.24     (6) (7) To employ any and all professional and 
 35.25  nonprofessional services and all agents, employees, workers, and 
 35.26  servants necessary and proper for the purposes and activities of 
 35.27  such corporation as authorized or contemplated herein and to pay 
 35.28  for the same out of any portion of the income of the corporation 
 35.29  available for such purposes or activities.  The officers and 
 35.30  members of such corporation shall not receive any compensation 
 35.31  therefrom, but may receive their reasonable and necessary 
 35.32  expenses incurred in connection with the performance of their 
 35.33  duties; provided however, that whenever the duties of any member 
 35.34  of the commission require full time and attention the commission 
 35.35  may compensate the member therefor at such rates as it may 
 35.36  determine. 
 36.1      (7) (8) To borrow money and issue bonds for the purposes 
 36.2   and in the manner and within the limitations herein specified, 
 36.3   and to pledge any and all property and income of such 
 36.4   corporation acquired or received as herein provided to secure 
 36.5   the payment of such bonds, subject to the provisions and 
 36.6   limitations herein prescribed, and to redeem any such bonds if 
 36.7   so provided therein or in the mortgage or trust deed 
 36.8   accompanying the same. 
 36.9      (8) (9) To use for the following purposes any available 
 36.10  money received by such corporation from any source as herein 
 36.11  provided in excess of those required for the payment of the cost 
 36.12  of such armory and for the payment of any bonds issued by the 
 36.13  corporation and interest thereon according to the terms of such 
 36.14  bonds or of any mortgage or trust deed accompanying the same: 
 36.15     (a) (i) To pay the necessary incidental expenses of 
 36.16  carrying on the business and activities of the corporation as 
 36.17  herein authorized; 
 36.18     (b) (ii) To pay the cost of operating, maintaining, 
 36.19  repairing, and improving such new armories; 
 36.20     (c) (iii) If any further excess moneys remain, to purchase 
 36.21  upon the open market at or above or below the face or par value 
 36.22  thereof any bonds issued by the corporation as herein 
 36.23  authorized; provided, that any bonds so purchased shall 
 36.24  thereupon be canceled. 
 36.25     (9) (10) To adopt and use a corporate seal. 
 36.26     (10) (11) To adopt all needful bylaws and rules for the 
 36.27  conduct of business and affairs of such corporation and for the 
 36.28  management and use of all armories while under the ownership and 
 36.29  control of such corporation as herein provided, not inconsistent 
 36.30  with the use of such armory for armory or military purposes. 
 36.31     (11) (12) Such corporation shall issue no stock. 
 36.32     (12) (13) No officer or member of such corporation shall 
 36.33  have any personal share or interest in any funds or property of 
 36.34  the corporation or be subject to any personal liability by 
 36.35  reason of any liability of the corporation. 
 36.36     (13) (14) The Minnesota state armory building commission 
 37.1   created under section 193.142 shall keep all money and credits 
 37.2   received by it as a single fund, to be designated as the 
 37.3   "Minnesota state armory building commission fund," with separate 
 37.4   accounts for each armory; and the commission may make transfers 
 37.5   of money from funds appertaining to any armory under its control 
 37.6   for use for any other such armory; provided such transfers shall 
 37.7   be made only from money on hand, from time to time, in excess of 
 37.8   the amounts required to meet payments of interest or principal 
 37.9   on bonds or other obligations appertaining to the armory to 
 37.10  which such funds pertain and only when necessary to pay expenses 
 37.11  of construction, operation, maintenance, and debt service of 
 37.12  such other armory; provided further, no such transfer of any 
 37.13  money paid for the support of any armory by the municipality in 
 37.14  which such armory is situated shall be made by the commission. 
 37.15     (14) (15) The corporation created under section 193.142 may 
 37.16  designate one or more state or national banks as depositories of 
 37.17  its funds, and may provide, upon such conditions as the 
 37.18  corporation may determine, that the treasurer of the corporation 
 37.19  shall be exempt from personal liability for loss of funds 
 37.20  deposited in any such depository due to the insolvency or other 
 37.21  acts or omissions of such depository. 
 37.22     (15) (16) The governor is empowered to apply for grants of 
 37.23  money, equipment, and materials which may be made available to 
 37.24  the states by the federal government for leasing, building, and 
 37.25  equipping armories for the use of the military forces of the 
 37.26  state which are reserve components of the armed forces of the 
 37.27  United States, whenever the governor is satisfied that the 
 37.28  conditions under which such grants are offered by the federal 
 37.29  government, are for the best interests of the state and are not 
 37.30  inconsistent with the laws of the state relating to armories, 
 37.31  and to accept such grants in the name of the state.  The 
 37.32  Minnesota state armory building commission is designated as the 
 37.33  agency of the state to receive such grants and to use them for 
 37.34  armory purposes as prescribed in this chapter, and by federal 
 37.35  laws, and regulations not inconsistent therewith. 
 37.36     Sec. 52.  Minnesota Statutes 1998, section 221.173, is 
 38.1   amended to read: 
 38.2      221.173 [ELECTRONIC SIGNATURE.] 
 38.3      (a) The commissioner may accept in lieu of a required 
 38.4   document completed on paper, an electronically transmitted 
 38.5   document authenticated by an electronic signature.  
 38.6      (b) The commissioner shall consult with the office of 
 38.7   technology, which shall provide advice and assistance in 
 38.8   establishing criteria and standards for authentication of 
 38.9   electronic signatures and establishing to a reasonable certainty 
 38.10  the validity, security, and linkage of a specific, unaltered, 
 38.11  electronically transmitted document, its unforged signature, and 
 38.12  its authorized signer.  
 38.13     (c) The commissioner may determine the technology or system 
 38.14  to be used, which may include a private key/public key system, 
 38.15  an encrypted or cryptology-based system, a pen-based, on-screen 
 38.16  signature system that captures and verifies an autograph and 
 38.17  links it to a specific document, or other system or technology 
 38.18  or combination of systems.  
 38.19     (d) (c) To the extent consistent with this section, laws 
 38.20  and rules pertaining to paper-based documents also pertain to 
 38.21  electronically transmitted documents. 
 38.22     Sec. 53.  Minnesota Statutes 1998, section 256.9753, 
 38.23  subdivision 3, is amended to read: 
 38.24     Subd. 3.  [EXPENDITURES.] The board shall consult with the 
 38.25  office of citizenship and volunteer services prior to expending 
 38.26  money available for the retired senior volunteer programs.  
 38.27  Expenditures shall be made (1) to strengthen and expand existing 
 38.28  retired senior volunteer programs, and (2) to encourage the 
 38.29  development of new programs in areas in the state where these 
 38.30  programs do not exist.  Grants shall be made consistent with 
 38.31  applicable federal guidelines. 
 38.32     Sec. 54.  Minnesota Statutes 1998, section 349A.02, 
 38.33  subdivision 1, is amended to read: 
 38.34     Subdivision 1.  [DIRECTOR.] A state lottery is established 
 38.35  under the supervision and control of the director of the state 
 38.36  lottery appointed by the governor with the advice and consent of 
 39.1   the senate.  The director must be qualified by experience and 
 39.2   training in the operation of a lottery to supervise the 
 39.3   lottery.  The director serves in the unclassified service.  The 
 39.4   annual salary rate authorized for the director is equal to 85 95 
 39.5   percent of the salary rate prescribed for the governor. 
 39.6      Sec. 55.  Minnesota Statutes 1998, section 422A.101, 
 39.7   subdivision 3, is amended to read: 
 39.8      Subd. 3.  [STATE CONTRIBUTIONS.] (a) Subject to the 
 39.9   limitation set forth in paragraph (c), the state shall pay to 
 39.10  the Minneapolis employees retirement fund annually an amount 
 39.11  equal to the amount calculated under paragraph (b). 
 39.12     (b) The payment amount is an amount equal to the financial 
 39.13  requirements of the Minneapolis employees retirement fund 
 39.14  reported in the actuarial valuation of the fund prepared by the 
 39.15  commission-retained actuary pursuant to section 356.215 for the 
 39.16  most recent year but based on a target date for full 
 39.17  amortization of the unfunded actuarial accrued liabilities by 
 39.18  June 30, 2020, less the amount of employee contributions 
 39.19  required pursuant to section 422A.10, and the amount of employer 
 39.20  contributions required pursuant to subdivisions 1a, 2, and 2a.  
 39.21  Payments shall be made in four equal installments, occurring on 
 39.22  March 15, July 15, September 15, and November 15 annually.  
 39.23     (c) The annual state contribution under this subdivision 
 39.24  may not exceed $10,455,000 through fiscal year 1998 and 
 39.25  $9,000,000 beginning in fiscal year 1999, plus the cost of the 
 39.26  annual supplemental benefit determined under section 356.865. 
 39.27     (d) If the amount determined under paragraph (b) exceeds 
 39.28  $11,910,000, the excess must be allocated to and paid to the 
 39.29  fund by the employers identified in subdivisions 1a and 2, other 
 39.30  than units of metropolitan government.  Each employer's share of 
 39.31  the excess is proportionate to the employer's share of the 
 39.32  fund's unfunded actuarial accrued liability as disclosed in the 
 39.33  annual actuarial valuation prepared by the actuary retained by 
 39.34  the legislative commission on pensions and retirement compared 
 39.35  to the total unfunded actuarial accrued liability attributed to 
 39.36  all employers identified in subdivisions 1a and 2, other than 
 40.1   units of metropolitan government.  Payments must be made in 
 40.2   equal installments as set forth in paragraph (b). 
 40.3      Sec. 56.  Minnesota Statutes 1998, section 471.345, is 
 40.4   amended by adding a subdivision to read: 
 40.5      Subd. 15.  [DESIGN-BUILD PROHIBITION.] A municipality may 
 40.6   not use a design-build method of project development and 
 40.7   construction.  For purposes of this subdivision, "design-build 
 40.8   method" means a project delivery system in which a single 
 40.9   contractor is responsible for both the design and construction 
 40.10  of the project and in which the design and construction are bid 
 40.11  together. 
 40.12     Sec. 57.  [473.1296] [LIMIT.] 
 40.13     (a) The metropolitan council or a metropolitan agency may 
 40.14  not issue bonds to provide money for a project estimated to cost 
 40.15  more than $5,000,000 unless a cost-benefit analysis has been 
 40.16  completed and shows a positive benefit to the public.  
 40.17     (b) All cost-benefit analysis documents under this section, 
 40.18  including preliminary drafts and notes, are public data. 
 40.19     (c) If a cost-benefit analysis does not show a positive 
 40.20  benefit to the public, the metropolitan agency may issue bonds 
 40.21  for the project if a cost-effectiveness study has been done that 
 40.22  shows a proposed project is the most effective way to provide a 
 40.23  necessary public good. 
 40.24     (d) This section does not apply to projects that are in 
 40.25  response to a natural disaster if an emergency has been declared 
 40.26  by the governor. 
 40.27     Sec. 58.  Minnesota Statutes 1999 Supplement, section 
 40.28  473.3993, subdivision 3, is amended to read: 
 40.29     Subd. 3.  [FINAL DESIGN PLAN.] (a) "Final design plan" 
 40.30  means a light rail transit plan that includes the items in the 
 40.31  preliminary design plan and the preliminary engineering plan for 
 40.32  the facilities proposed but with greater detail and specificity 
 40.33  needed for construction.  The final design plan must include, at 
 40.34  a minimum:  
 40.35     (1) final plans for the physical design of facilities, 
 40.36  including the right-of-way definition; environmental impacts and 
 41.1   mitigation measures; intermodal coordination with bus operations 
 41.2   and routes; and civil engineering plans for vehicles, track, 
 41.3   stations, parking, and access, including handicapped access; and 
 41.4      (2) final plans for civil engineering for electrification, 
 41.5   communication, and other similar facilities; operational rules, 
 41.6   procedures, and strategies; capital costs; ridership; operating 
 41.7   costs and revenues, and sources of funds for operating 
 41.8   subsidies; financing for construction and operation; an 
 41.9   implementation method; and other similar matters.  
 41.10     The final design plan must be stated with sufficient 
 41.11  particularity and detail to allow the proposer to begin the 
 41.12  acquisition and construction of operable facilities.  If a 
 41.13  design-build implementation method is proposed, instead of civil 
 41.14  engineering plans the final design plan must state detailed 
 41.15  design criteria and performance standards for the facilities. 
 41.16     The commissioner of transportation may use a design-build 
 41.17  method of project development and construction for light rail 
 41.18  transit.  Notwithstanding any law to the contrary, the 
 41.19  commissioner may award a design-build contract on the basis of 
 41.20  requests for proposals or requests for qualifications without 
 41.21  bids.  "Design-build method of project development and 
 41.22  construction" means a project delivery system in which a single 
 41.23  contractor is responsible for both the design and construction 
 41.24  of the project and bids the design and construction together. 
 41.25     (b) Notwithstanding other law, chapters 16B and 16C apply 
 41.26  to project development and construction for light rail transit. 
 41.27     Sec. 59.  Laws 1999, chapter 250, article 1, section 11, is 
 41.28  amended to read: 
 41.29  Sec. 11.  OFFICE OF STRATEGIC 
 41.30  AND LONG-RANGE PLANNING                6,891,000      4,417,000
 41.31  $100,000 the first year is to integrate 
 41.32  the office's information technology and 
 41.33  is available until June 30, 2003.  The 
 41.34  director shall report on the progress 
 41.35  of the unit to the chairs of the 
 41.36  legislative committees responsible for 
 41.37  this budget item by January 15, 2000, 
 41.38  2001, and 2002. 
 41.39  $1,600,000 the first year is for a 
 41.40  generic environmental impact statement 
 41.41  on animal agriculture. 
 42.1   $200,000 the first year is to perform 
 42.2   program evaluations of agencies in the 
 42.3   executive branch. 
 42.4   The program evaluation division will 
 42.5   report to the legislature by December 
 42.6   1, 2000, ways to reduce state 
 42.7   government expenditures by five to ten 
 42.8   percent. 
 42.9   $100,000 the first year is to provide 
 42.10  administrative support to 
 42.11  community-based planning efforts. 
 42.12  $150,000 the first year is for a grant 
 42.13  of $50,000 to the southwest regional 
 42.14  development commission for the 
 42.15  continuation of the pilot program and 
 42.16  two additional grants of $50,000 each 
 42.17  to regional development commissions or, 
 42.18  in regions not served by regional 
 42.19  development commissions, to regional 
 42.20  organizations selected by the director 
 42.21  of strategic and long-range planning, 
 42.22  to support planning work on behalf of 
 42.23  local units of government.  The 
 42.24  planning work shall include, but need 
 42.25  not be limited to:  
 42.26  (1) development of local zoning 
 42.27  ordinances; 
 42.28  (2) land use plans; 
 42.29  (3) community or economic development 
 42.30  plans; 
 42.31  (4) transportation and transit plans; 
 42.32  (5) solid waste management plans; 
 42.33  (6) wastewater management plans; 
 42.34  (7) workforce development plans; 
 42.35  (8) housing development plans and/or 
 42.36  market analysis; 
 42.37  (9) rural health service plans; 
 42.38  (10) natural resources management 
 42.39  plans; or 
 42.40  (11) development of geographical 
 42.41  information systems database to serve a 
 42.42  region's needs, including hardware and 
 42.43  software purchases and related labor 
 42.44  costs. 
 42.45  $200,000 the first year is to prepare 
 42.46  the generic environmental impact 
 42.47  statement on urban development required 
 42.48  by section 108.  Any unencumbered 
 42.49  balance remaining in the first year 
 42.50  does not cancel and is available for 
 42.51  the second year of the biennium. 
 42.52  $24,000 the first year is for the 
 42.53  southwest Minnesota wind monitoring 
 42.54  project. 
 43.1   $100,000 the first year is for a grant 
 43.2   to the city of Mankato to complete the 
 43.3   Mankato area growth management and 
 43.4   planning study, phase 2.  The 
 43.5   appropriation is available until June 
 43.6   30, 2002.  The appropriation must be 
 43.7   matched by an in-kind donation of 
 43.8   $100,000 in administrative, technical, 
 43.9   and higher educational internship 
 43.10  support and supervision.  The value of 
 43.11  the in-kind donations must be 
 43.12  determined by the commissioner of 
 43.13  finance. 
 43.14  The city shall serve as fiscal agent to 
 43.15  complete the study under the 1997 
 43.16  regional planning joint powers 
 43.17  agreement among the cities of Mankato, 
 43.18  North Mankato, and Eagle Lake; the 
 43.19  counties of Nicollet and Blue Earth; 
 43.20  and the towns of Mankato, South Bend, 
 43.21  Lime, Decoria, and Belgrade, without 
 43.22  limitation on the rights of the parties 
 43.23  to that agreement to add or remove 
 43.24  members.  The study is intended as an 
 43.25  alternative to community-based 
 43.26  planning.  The study is intended to 
 43.27  develop information and analysis to 
 43.28  provide guidance on such issues as: 
 43.29  (1) the development of joint planning 
 43.30  agreements to implement a unified 
 43.31  growth management strategy; 
 43.32  (2) joint service ventures, such as 
 43.33  planning or zoning administration in 
 43.34  urban fringe areas; 
 43.35  (3) orderly growth and annexation 
 43.36  agreements between cities and 
 43.37  townships; 
 43.38  (4) feedlot regulations in urban fringe 
 43.39  areas and future growth corridors; 
 43.40  (5) service strategies for unsewered 
 43.41  subdivisions; 
 43.42  (6) other joint ventures for city, 
 43.43  county, and township service delivery 
 43.44  in fringe areas; 
 43.45  (7) feasibility of a rural township 
 43.46  taxing district; and 
 43.47  (8) alternatives to the current 
 43.48  community-based planning legislation 
 43.49  that would add flexibility and improve 
 43.50  the planning process. 
 43.51  The city of Mankato shall report the 
 43.52  results of the study to the legislature 
 43.53  by January 15, 2002. 
 43.54     Sec. 60.  Laws 1999, chapter 250, article 1, section 14, 
 43.55  subdivision 3, is amended to read: 
 43.56  Subd. 3.  Information and 
 43.57  Management Services 
 44.1       16,643,000      9,932,000
 44.2   $100,000 the first year is for a grant 
 44.3   to the city of Mankato to complete the 
 44.4   Mankato area growth management and 
 44.5   planning study, phase 2.  The 
 44.6   appropriation is available until June 
 44.7   30, 2002.  The appropriation must be 
 44.8   matched by an in-kind donation of 
 44.9   $100,000 in administrative, technical, 
 44.10  and higher educational internship 
 44.11  support and supervision.  The value of 
 44.12  the in-kind donations must be 
 44.13  determined by the commissioner of 
 44.14  finance. 
 44.15  The city shall serve as fiscal agent to 
 44.16  complete the study under the 1997 
 44.17  regional planning joint powers 
 44.18  agreement among the cities of Mankato, 
 44.19  North Mankato, and Eagle Lake; the 
 44.20  counties of Nicollet and Blue Earth; 
 44.21  and the towns of Mankato, South Bend, 
 44.22  Lime, Decoria, and Belgrade, without 
 44.23  limitation on the rights of the parties 
 44.24  to that agreement to add or remove 
 44.25  members.  The study is intended as an 
 44.26  alternative to community-based 
 44.27  planning.  The study is intended to 
 44.28  develop information and analysis to 
 44.29  provide guidance on such issues as: 
 44.30  (1) the development of joint planning 
 44.31  agreements to implement a unified 
 44.32  growth management strategy; 
 44.33  (2) joint service ventures, such as 
 44.34  planning or zoning administration in 
 44.35  urban fringe areas; 
 44.36  (3) orderly growth and annexation 
 44.37  agreements between cities and 
 44.38  townships; 
 44.39  (4) feedlot regulations in urban fringe 
 44.40  areas and future growth corridors; 
 44.41  (5) service strategies for unsewered 
 44.42  subdivisions; 
 44.43  (6) other joint ventures for city, 
 44.44  county, and township service delivery 
 44.45  in fringe areas; 
 44.46  (7) feasibility of a rural township 
 44.47  taxing district; and 
 44.48  (8) alternatives to the current 
 44.49  community-based planning legislation 
 44.50  that would add flexibility and improve 
 44.51  the planning process. 
 44.52  The city of Mankato shall report the 
 44.53  results of the study to the legislature 
 44.54  by January 15, 2002. 
 44.55  $6,839,000 the first year is a one-time 
 44.56  appropriation to upgrade the human 
 44.57  resources and payroll system and is 
 44.58  available until June 30, 2003.  The 
 44.59  commissioner shall report on the 
 45.1   progress of this project to the chairs 
 45.2   of the legislative committees 
 45.3   responsible for this budget item by 
 45.4   January 15, 2000, 2001, and 2002. 
 45.5   The commissioner of finance shall work 
 45.6   with the commissioners of employee 
 45.7   relations and administration and shall 
 45.8   develop as part of the human resource 
 45.9   and payroll systems upgrade, and submit 
 45.10  to the chairs of the senate 
 45.11  governmental operations budget division 
 45.12  and the house state government finance 
 45.13  committee by January 15, 2000, a 
 45.14  long-range plan for the statewide 
 45.15  business systems:  human resources, 
 45.16  payroll, accounting, and procurement.  
 45.17  The plan must detail each system's 
 45.18  original development costs, its 
 45.19  expected life cycle, the estimated cost 
 45.20  of upgrading software to newer versions 
 45.21  during its life cycle, its operating 
 45.22  costs to date, and the factors that are 
 45.23  expected to drive future operating 
 45.24  costs within the departments of 
 45.25  finance, administration, and employee 
 45.26  relations.  The plan must also include 
 45.27  an evaluation of and recommendations on 
 45.28  whether, for the statewide business 
 45.29  systems, the state should use software 
 45.30  that is developed and maintained in 
 45.31  house; proprietary software, either 
 45.32  modified or unmodified; a private 
 45.33  vendor; or a particular combination of 
 45.34  these options. 
 45.35  The commissioner of finance, in 
 45.36  consultation with senate and house 
 45.37  fiscal staff and the commissioner of 
 45.38  administration, shall develop 
 45.39  recommendations for inclusion in the 
 45.40  governor's fiscal year 2002-2003 budget 
 45.41  document on the presentation of 
 45.42  internal service funds.  The 
 45.43  commissioner of finance shall submit 
 45.44  the recommendations to the chairs of 
 45.45  the senate governmental operations 
 45.46  budget division and the house state 
 45.47  government finance committee by January 
 45.48  15, 2000. 
 45.49  The department shall prepare a separate 
 45.50  budget book for the biennium beginning 
 45.51  July 1, 2001, containing all of the 
 45.52  administration's technology 
 45.53  initiatives.  The book must also 
 45.54  include a complete inventory of 
 45.55  state-owned and leased technology, 
 45.56  along with a projected replacement 
 45.57  schedule.  The inventory must include 
 45.58  information on how the technology fits 
 45.59  into the state's master plan. 
 45.60     Sec. 61.  Laws 1999, chapter 250, article 1, section 18, is 
 45.61  amended to read: 
 45.62  Sec. 18.  VETERANS AFFAIRS             5,885,000      4,369,000
 45.63  $1,544,000 the first year and 
 45.64  $1,544,000 the second year are for 
 46.1   emergency financial and medical needs 
 46.2   of veterans.  If the appropriation for 
 46.3   either year is insufficient, the 
 46.4   appropriation for the other year is 
 46.5   available for it.  
 46.6   $12,000 the first year and $13,000 the 
 46.7   second year are one-time funding to 
 46.8   provide grants to local veterans' 
 46.9   organizations that provide 
 46.10  transportation services for veterans to 
 46.11  veterans administration medical 
 46.12  facilities. 
 46.13  The commissioner of veterans affairs, 
 46.14  in cooperation with the board of 
 46.15  directors of the Minnesota veterans 
 46.16  homes and the United States Veterans 
 46.17  Administration, shall study the 
 46.18  feasibility and desirability of 
 46.19  supplementing the missions of the 
 46.20  veterans homes and the Veterans 
 46.21  Administration hospitals in Minnesota 
 46.22  by entering into agreements with health 
 46.23  care providers throughout the state to 
 46.24  provide free or reduced-cost 
 46.25  comprehensive health care to veterans 
 46.26  close to their places of residence as a 
 46.27  supplement to private health 
 46.28  insurance.  The commissioner shall 
 46.29  report the results of the study and any 
 46.30  recommendations to the legislature by 
 46.31  January 15, 2000. 
 46.32  With the approval of the commissioner 
 46.33  of finance, the commissioner of 
 46.34  veterans affairs may transfer the 
 46.35  unencumbered balance from the veterans 
 46.36  relief program to other department 
 46.37  programs during the fiscal year.  
 46.38  Before the transfer, the commissioner 
 46.39  of veterans affairs shall explain why 
 46.40  the unencumbered balance exists.  The 
 46.41  amounts transferred must be identified 
 46.42  to the chairs of the senate 
 46.43  governmental operations budget 
 46.44  committee and the house state 
 46.45  government finance committee. 
 46.46  $275,000 the first year and $275,000 
 46.47  the second year are for a grant to the 
 46.48  Vinland National Center. 
 46.49  $1,485,000 the first year is to make 
 46.50  bonus payments authorized under 
 46.51  Minnesota Statutes, section 197.79.  
 46.52  The appropriation may not be used for 
 46.53  administrative purposes.  The 
 46.54  appropriation does not expire until the 
 46.55  commissioner acts on all applications 
 46.56  submitted under Minnesota Statutes, 
 46.57  section 197.79. 
 46.58  $105,000 the first year is to 
 46.59  administer the bonus program 
 46.60  established under Minnesota Statutes, 
 46.61  section 197.79.  The appropriation does 
 46.62  not expire until the commissioner acts 
 46.63  on all the applications submitted under 
 46.64  Minnesota Statutes, section 197.79. 
 47.1   $233,000 the first year and $235,000 
 47.2   the second year are for grants to 
 47.3   county veterans offices for training of 
 47.4   county veterans service officers and to 
 47.5   improve efficiency of county veterans 
 47.6   services offices. 
 47.7      Sec. 62.  Laws 1999, chapter 250, article 1, section 116, 
 47.8   is amended to read: 
 47.9      Sec. 116.  [EFFECTIVE DATE.] 
 47.10     (a) Section 41 is effective January 1, 2001.  Section 43 is 
 47.11  effective July 1, 2000, with respect to preparation of the model 
 47.12  policies and procedures by the commissioner of administration, 
 47.13  and January 1, 2001, with respect to the other provisions of 
 47.14  section 43. 
 47.15     (b) Sections 62 to 64 and 93 are effective January August 
 47.16  1, 2001. 
 47.17     (c) Sections 94 to 100 are effective the day following 
 47.18  final enactment. 
 47.19     (d) Sections 47, 49, 55, and 115, paragraphs (d) and (g), 
 47.20  are effective July 1, 2001. 
 47.21     (e) Section 61 is effective the day following final 
 47.22  enactment and applies only to contracts executed on or after 
 47.23  that date. 
 47.24     (f) The commissioner of employee relations may not 
 47.25  implement the long-term care insurance plan under section 78 
 47.26  until April 1, 2000. 
 47.27     Sec. 63.  [TRANSITION.] 
 47.28     The house of representatives and the senate shall adopt the 
 47.29  rules required by sections 11 and 13 during the 2001 legislative 
 47.30  session and implement them beginning in the legislative session 
 47.31  2002. 
 47.32     Sec. 64.  [AMATEUR SPORTS COMMISSION REPORT.] 
 47.33     The amateur sports commission must report to the 
 47.34  legislature by January 15, 2001, on a plan to combine the 
 47.35  commission with the Minnesota state high school league. 
 47.36     Sec. 65.  [MINORITY RECRUITMENT.] 
 47.37     The commissioner of employee relations must develop and 
 47.38  implement a plan to recruit and retain minority employees in 
 48.1   state government.  As part of the recruitment plan, the 
 48.2   commissioner must build connections with minority centers and 
 48.3   with entities that work with minority persons looking for jobs 
 48.4   or training.  As part of the retention plan, the commissioner 
 48.5   must work with minority state employees and minority former 
 48.6   state employees to:  (1) find out what barriers they encountered 
 48.7   in seeking state employment; (2) find out what problems these 
 48.8   employees have encountered in their work; and (3) develop a 
 48.9   program to improve retention rates of minority employees.  The 
 48.10  commissioner must report the plan to the legislature by January 
 48.11  15, 2001. 
 48.12     Sec. 66.  [GOVERNOR'S STAFF.] 
 48.13     During the biennium ending June 30, 2001, the governor's 
 48.14  office may not include more than three legislative relations 
 48.15  staff.  The amount saved by reducing the number of legislative 
 48.16  relations staff may be used to provide increased security for 
 48.17  the governor. 
 48.18     Sec. 67.  [MINNESOTA POET LAUREATE.] 
 48.19     The humanities commission must develop a plan for the 
 48.20  selection of a Minnesota Poet Laureate.  The commission must 
 48.21  present the plan to the legislature by January 15, 2001. 
 48.22     Sec. 68.  [SUSPENSION OF TELECOMMUNICATIONS FACILITIES 
 48.23  INSTALLATION.] 
 48.24     The commissioners of administration and transportation may 
 48.25  not allow further installation of facilities under the contract 
 48.26  that is the subject of an Order of the Federal Communications 
 48.27  Commission in CC Docket No. 98-1 denying the Petition for 
 48.28  Declaratory Ruling filed by the state of Minnesota or amend that 
 48.29  contract until the house and senate governmental operations 
 48.30  committees approve amendments to the contract that will 
 48.31  eliminate the possible anticompetitive effects noted in the FCC 
 48.32  order and meet the requirements of section 253 of the federal 
 48.33  Telecommunications Act of 1996, Public Law Number 104-104. 
 48.34     Sec. 69.  [CLARIFICATION; EFFECT ON REPEAL.] 
 48.35     Laws 1999, chapter 250, article 3, does not repeal rules or 
 48.36  fees in effect on the day before the effective date of Laws 
 49.1   1999, chapter 250, article 3. 
 49.2      Sec. 70.  [ENERGY RULES FOR RESIDENTIAL BUILDINGS.] 
 49.3      The provisions of Minnesota Rules, chapter 7670, that apply 
 49.4   to category 1 buildings govern residential buildings not covered 
 49.5   by Minnesota Rules, chapter 7676.  The provisions of Minnesota 
 49.6   Rules, chapter 7670, that allow category 2 buildings are void 
 49.7   and of no effect.  All buildings subject to Minnesota Rules, 
 49.8   chapter 7670, attaining a building permit on or after April 15, 
 49.9   2000, must meet the requirements for category 1 buildings as set 
 49.10  out in Minnesota Rules, chapter 7670. 
 49.11     Sec. 71.  [RATIFICATIONS.] 
 49.12     Subdivision 1.  [COUNCIL 6.] The labor agreement between 
 49.13  the state of Minnesota and the American federation of state, 
 49.14  county, and municipal employees, council 6, approved by the 
 49.15  legislative coordinating commission subcommittee on employee 
 49.16  relations on September 10, 1999, is ratified. 
 49.17     Subd. 2.  [RESIDENTIAL SCHOOLS TEACHERS.] The labor 
 49.18  agreement between the state of Minnesota and the state 
 49.19  residential schools education association, approved by the 
 49.20  legislative coordinating commission subcommittee on employee 
 49.21  relations on December 13, 1999, is ratified. 
 49.22     Subd. 3.  [SUPERVISORS.] The labor agreement between the 
 49.23  state of Minnesota and the middle management association, 
 49.24  approved by the legislative coordinating commission subcommittee 
 49.25  on employee relations on December 13, 1999, is ratified. 
 49.26     Subd. 4.  [NURSES.] The labor agreement between the state 
 49.27  of Minnesota and the Minnesota nurses association, approved by 
 49.28  the legislative coordinating commission subcommittee on employee 
 49.29  relations on December 13, 1999, is ratified. 
 49.30     Subd. 5.  [COMMUNITY COLLEGE FACULTY.] The labor agreement 
 49.31  between the state of Minnesota and the Minnesota community 
 49.32  college faculty association, approved by the legislative 
 49.33  coordinating commission subcommittee on employee relations on 
 49.34  December 13, 1999, is ratified. 
 49.35     Subd. 6.  [STATE UNIVERSITY FACULTY.] The labor agreement 
 49.36  between the state of Minnesota and the interfaculty 
 50.1   organization, approved by the legislative coordinating 
 50.2   commission subcommittee on employee relations on December 13, 
 50.3   1999, is ratified. 
 50.4      Subd. 7.  [TECHNICAL COLLEGE FACULTY.] The labor agreement 
 50.5   between the state of Minnesota and the united technical college 
 50.6   educators, approved by the legislative coordinating commission 
 50.7   subcommittee on employee relations on December 13, 1999, is 
 50.8   ratified. 
 50.9      Subd. 8.  [STATE UNIVERSITY ADMINISTRATIVE AND SERVICE 
 50.10  FACULTY.] The labor agreement between the state of Minnesota and 
 50.11  the Minnesota state university association of administrative and 
 50.12  service faculty, approved by the legislative coordinating 
 50.13  commission subcommittee on employee relations on December 13, 
 50.14  1999, is ratified. 
 50.15     Subd. 9.  [COMMISSIONER'S PLAN.] The commissioner's plan 
 50.16  for unrepresented employees, approved by the legislative 
 50.17  coordinating commission subcommittee on employee relations on 
 50.18  December 13, 1999, and as amended by the subcommittee on January 
 50.19  31, 2000, is ratified. 
 50.20     Subd. 10.  [MANAGERIAL PLAN.] The plan for managerial 
 50.21  employees, approved by the legislative coordinating commission 
 50.22  subcommittee on employee relations on December 13, 1999, and as 
 50.23  amended by the subcommittee on January 31, 2000, is ratified. 
 50.24     Subd. 11.  [UNREPRESENTED MANAGERS; MINNESOTA STATE 
 50.25  COLLEGES AND UNIVERSITIES.] The plan for administrators of the 
 50.26  Minnesota state colleges and universities, approved by the 
 50.27  legislative coordinating commission subcommittee on employee 
 50.28  relations on December 13, 1999, is ratified. 
 50.29     Subd. 12.  [PROFESSIONAL EMPLOYEES.] The labor agreement 
 50.30  between the state of Minnesota and the Minnesota association of 
 50.31  professional employees, approved by the legislative coordinating 
 50.32  commission subcommittee on employee relations on January 31, 
 50.33  2000, is ratified. 
 50.34     Subd. 13.  [LAW ENFORCEMENT.] The labor agreement between 
 50.35  the state of Minnesota and the Minnesota law enforcement 
 50.36  association, approved by the legislative coordinating commission 
 51.1   subcommittee on employee relations on January 31, 2000, is 
 51.2   ratified. 
 51.3      Subd. 14.  [CORRECTIONAL GUARDS.] The arbitration award and 
 51.4   labor agreement between the state of Minnesota and the American 
 51.5   federation of state, county, and municipal employees, council 6, 
 51.6   approved by the legislative coordinating commission subcommittee 
 51.7   on employee relations on January 31, 2000, is ratified. 
 51.8      Subd. 15.  [UNREPRESENTED EMPLOYEES, HIGHER EDUCATION 
 51.9   SERVICES OFFICE.] The plan for unrepresented, unclassified 
 51.10  employees of the higher education services office, approved by 
 51.11  the legislative coordinating commission subcommittee on employee 
 51.12  relations on January 31, 2000, is ratified. 
 51.13     Subd. 16.  [SALARIES FOR CERTAIN HEADS OF STATE 
 51.14  AGENCIES.] The proposals to increase the salaries of certain 
 51.15  heads of state agencies, approved by the legislative 
 51.16  coordinating commission subcommittee on employee relations on 
 51.17  January 31, 2000, are ratified. 
 51.18     Subd. 17.  [SALARY FOR THE DIRECTOR OF THE HIGHER EDUCATION 
 51.19  SERVICES OFFICE.] The proposal to increase the salary of the 
 51.20  director of the higher education services office, recommended by 
 51.21  the legislative coordinating commission subcommittee on employee 
 51.22  relations on February 22, 2000, is ratified. 
 51.23     Subd. 18.  [GOVERNOR.] The salary of the governor is 
 51.24  $150,000. 
 51.25     Sec. 72.  [OUTSIDE MANAGEMENT CONTRACT.] 
 51.26     The zoo board must issue a request for proposal by 
 51.27  September 1, 2000, for a private vendor to provide management 
 51.28  services for the Minnesota Zoological Garden. 
 51.29     Sec. 73.  [MEMORANDUM OF UNDERSTANDING.] 
 51.30     The commissioner of employee relations may not execute a 
 51.31  memorandum of understanding relating to employee compensation 
 51.32  for travel time with an exclusive representative of a bargaining 
 51.33  unit until after it has been approved by the legislative 
 51.34  coordinating commission under Minnesota Statutes, section 
 51.35  3.855.  When the legislature is not in session, failure of the 
 51.36  commission to disapprove a memorandum of understanding within 30 
 52.1   days of submission constitutes approval. 
 52.2      Sec. 74.  [ALLOCATION OF COSTS OF CERTAIN BOUNDARY 
 52.3   ADJUSTMENT MATTERS.] 
 52.4      All costs of any boundary adjustment matter commenced 
 52.5   before June 1, 1999, that is concluded after that date under an 
 52.6   alternative dispute resolution process as directed by the 
 52.7   director of the office of strategic and long-range planning, 
 52.8   must be allocated as provided in law and rule prior to the 
 52.9   abolition of the Minnesota municipal board.  The maximum total 
 52.10  amount the parties may be charged by the office of strategic and 
 52.11  long-range planning, the office of administrative hearings, or 
 52.12  as part of an arbitration is no more than the Minnesota 
 52.13  municipal board could have charged if the matter had been heard 
 52.14  and decided by the board.  Costs that exceed what the municipal 
 52.15  board could have charged must be paid by the office of strategic 
 52.16  and long-range planning. 
 52.17     Sec. 75.  [REPEALER.] 
 52.18     (a) Minnesota Statutes 1998, section 16B.88; and Minnesota 
 52.19  Statutes 1999 Supplement, section 43A.318, are repealed. 
 52.20     (b) Minnesota Statutes 1998, sections 16E.01, subdivisions 
 52.21  2 and 3; 16E.03, subdivisions 1 and 3; 16E.04, subdivision 1; 
 52.22  16E.05; 16E.06; 16E.07, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, 
 52.23  and 11; and 136F.59, subdivision 3; Minnesota Statutes 1999 
 52.24  Supplement, sections 16E.01, subdivision 1; 16E.02; 16E.03, 
 52.25  subdivisions 2, 4, 5, 6, 7, and 8; 16E.04, subdivision 2; 
 52.26  16E.07, subdivision 4; and 16E.08, are repealed. 
 52.27     (c) Minnesota Statutes 1998, sections 465.795; 465.796; 
 52.28  465.797, subdivisions 2, 3, 4, 5, 6, and 7; 465.7971; 465.798; 
 52.29  465.799; 465.801; 465.802; 465.803; 465.81; 465.82, subdivisions 
 52.30  1, 2, and 3; 465.83; 465.84; 465.85; 465.86; 465.87; and 465.88; 
 52.31  Minnesota Statutes 1999 Supplement, sections 465.797, 
 52.32  subdivisions 1 and 5a; and 465.82, subdivision 4, are repealed. 
 52.33     (d) Laws 1999, chapter 250, article 1, section 15, 
 52.34  subdivision 4, is repealed. 
 52.35     (e) Laws 1999, chapter 135, section 9, is repealed. 
 52.36     (f) Minnesota Rules, parts 7672.0100; 7672.0200; 7672.0300; 
 53.1   7672.0400; 7672.0500; 7672.0600; 7672.0700; 7672.0800; 
 53.2   7672.0900; 7672.1000; 7672.1100; 7672.1200; 7672.1300; 
 53.3   7674.0100; 7674.0200; 7674.0300; 7674.0400; 7674.0500; 
 53.4   7674.0600; 7674.0700; 7674.0800; 7674.0900; 7674.1000; 
 53.5   7674.1100; and 7674.1200, are repealed. 
 53.6      (g) Minnesota Statutes 1998, section 16B.37, subdivisions 
 53.7   1, 2, and 3, are repealed. 
 53.8      Sec. 76.  [EFFECTIVE DATE.] 
 53.9      Section 12 is effective January 2, 2001.  Section 14 is 
 53.10  effective the day after a like commission is authorized by the 
 53.11  appropriate authority of the government of Ontario.  Section 16 
 53.12  is effective July 1, 2000.  Section 19 is effective January 2, 
 53.13  2003, and applies to a person who leaves office or employment 
 53.14  after that date.  Sections 15, 44, and 75, paragraph (c), are 
 53.15  effective June 30, 2000.  Sections 70 and 75, paragraphs (e) and 
 53.16  (f), are effective April 15, 2000.  Sections 33, 56, and 58 are 
 53.17  effective the day following final enactment, and apply to any 
 53.18  contract for project development and construction entered into 
 53.19  on or after that date, including projects for which requests for 
 53.20  bids, qualifications, or proposals have been sought before that 
 53.21  date.  Except as otherwise provided in this article, this 
 53.22  article is effective the day following final enactment. 
 53.23                             ARTICLE 2 
 53.24                 RETIREMENT HEALTH CARE PROVISIONS
 53.25     Section 1.  [352G.01] [DEFINITIONS.] 
 53.26     Subdivision 1.  [TERMS.] Unless the language or context 
 53.27  clearly indicates that a different meaning is intended, the 
 53.28  terms defined in this section, for the purposes of this chapter, 
 53.29  have the meanings given them. 
 53.30     Subd. 2.  [INCLUDED PARTICIPANTS.] "Included participants" 
 53.31  means persons contributing to a retirement plan under chapter 
 53.32  3A, 352, 352B, 352D, or 490 on or after July 1, 2000. 
 53.33     Subd. 3.  [ELIGIBLE RETIRED EMPLOYEE.] "Eligible retired 
 53.34  employee" means a former employee who is drawing monthly 
 53.35  retirement benefits under chapter 3A, 352, 352B, 352D, or 490, 
 53.36  and who has at least 15 years of allowable service and was 
 54.1   eligible to draw retirement benefits at the time of separation 
 54.2   from state service. 
 54.3      Subd. 4.  [DISABLED EMPLOYEE.] "Disabled employee" means an 
 54.4   employee who has been determined disabled under chapter 3A, 352, 
 54.5   352B, 352D, or 490. 
 54.6      Subd. 5.  [INELIGIBLE TERMINATED EMPLOYEE.] "Ineligible 
 54.7   terminated employee" means a former state employee who is not 
 54.8   eligible for benefits from the health care reimbursement plan. 
 54.9      Subd. 6.  [ACCUMULATED CONTRIBUTIONS.] "Accumulated 
 54.10  contributions" means the total deductions made from the salary 
 54.11  of an employee into the health care reimbursement plan. 
 54.12     Subd. 7.  [HEALTH CARE REIMBURSEMENT FUND.] The "health 
 54.13  care reimbursement fund" includes the total accumulated 
 54.14  contributions and any investment return attributable to the 
 54.15  contributions. 
 54.16     Subd. 8.  [ALLOWABLE SERVICE.] "Allowable service" means 
 54.17  allowable service under chapter 3A, 352, 352B, 352D, or 490 
 54.18  except any allowable service reinstated by repaying a refund on 
 54.19  or after July 1, 2000. 
 54.20     Subd. 9.  [SALARY.] "Salary" means wages, or other periodic 
 54.21  compensation paid to an employee before deductions for deferred 
 54.22  compensation, supplemental retirement plans, or other voluntary 
 54.23  salary reduction programs.  Lump sum sick leave payments, 
 54.24  severance payments, lump sum annual leave payments and overtime 
 54.25  payments made at the time of separation from state service, 
 54.26  payments in lieu of any employee-paid group insurance coverage, 
 54.27  including the difference between single and family rates that 
 54.28  may be paid to an employee with single coverage, and payments 
 54.29  made as an employer-paid fringe benefit, workers' compensation 
 54.30  payments, employer contributions to a deferred compensation or 
 54.31  tax-sheltered annuity program, and amounts contributed under a 
 54.32  benevolent vacation and sick leave donation program, are not 
 54.33  salary. 
 54.34     Subd. 10.  [DESIGNATED BENEFICIARY.] "Designated 
 54.35  beneficiary" means the designated beneficiary established by the 
 54.36  included participants or eligible retired employees under the 
 55.1   retirement plan under chapter 3A, 352, 352B, 352D, or 490. 
 55.2      Subd. 11.  [EXECUTIVE DIRECTOR.] "Executive director" means 
 55.3   the executive director of the Minnesota state retirement system 
 55.4   under section 352.03, subdivision 5. 
 55.5      Subd. 12.  [BOARD.] "Board" means the board of directors of 
 55.6   the Minnesota state retirement system established under section 
 55.7   352.03. 
 55.8      Subd. 13.  [EMPLOYEE.] "Employee" means a person 
 55.9   contributing to a retirement plan under chapter 3A, 352, 352B, 
 55.10  352D, or 490. 
 55.11     Sec. 2.  [352G.02] [HEALTH CARE REIMBURSEMENT PLAN.] 
 55.12     Subdivision 1.  [ESTABLISHMENT.] There is established the 
 55.13  health care reimbursement plan for state employees covered under 
 55.14  chapter 3A, 352, 352B, 352D, or 490.  This plan must meet 
 55.15  qualification requirements under the Internal Revenue Code, 
 55.16  section 401(h), to ensure that both contributions and benefit 
 55.17  payments are tax free. 
 55.18     Subd. 2.  [EMPLOYEES COVERED.] Every employee contributing 
 55.19  to a plan under chapter 3A, 352, 352B, 352D, or 490 on or after 
 55.20  July 1, 2000, is covered by the health care reimbursement plan.  
 55.21  Acceptance of employment or continuance in service in which 
 55.22  contributions are made under chapter 3A, 352, 352B, 352D, or 490 
 55.23  is deemed consent to have deductions made from salary for 
 55.24  deposit to the credit of the account of the employee in the 
 55.25  health care reimbursement plan. 
 55.26     Sec. 3.  [352G.03] [COVERAGE TERMINATION.] 
 55.27     Coverage of any person under the health care reimbursement 
 55.28  plan ends when the person ceases to be an employee or is no 
 55.29  longer covered by a pension plan under chapter 3A, 352, 352B, 
 55.30  352D, or 490. 
 55.31     Sec. 4.  [352G.04] [APPEALS PROCEDURE.] 
 55.32     If someone wishes to appeal a decision made by the 
 55.33  executive director, the appeal procedure established under 
 55.34  section 352.031 must be followed. 
 55.35     Sec. 5.  [352G.05] [STATE EMPLOYEES HEALTH CARE 
 55.36  REIMBURSEMENT FUND, CONTRIBUTIONS BY EMPLOYEE AND EMPLOYER.] 
 56.1      Subdivision 1.  [FUND CREATED.] There is created a special 
 56.2   fund to be known as the state employees health care 
 56.3   reimbursement fund.  Employee contributions, investment returns, 
 56.4   and any other amounts authorized by law shall be deposited in 
 56.5   this account. 
 56.6      Subd. 2.  [EMPLOYEE CONTRIBUTIONS.] The employee 
 56.7   contribution to the fund must be equal to 0.75 percent of salary.
 56.8   These contributions must be made by deduction from salary as 
 56.9   provided in section 352.04, subdivision 4. 
 56.10     Subd. 3.  [OMITTED SALARY DEDUCTIONS.] If a department 
 56.11  fails to take deductions from an employee's salary as provided 
 56.12  in this section, the collection of omitted deduction must be 
 56.13  made in accordance with section 352.04, subdivision 8, 
 56.14  paragraphs (a), (b), and (c). 
 56.15     Subd. 4.  [ERRONEOUS DEDUCTIONS; CANCELED 
 56.16  WARRANTS.] Deductions taken from the salary of an employee for 
 56.17  the health care reimbursement fund in error must, upon discovery 
 56.18  and verification by the department making the deduction, be 
 56.19  refunded to the employee in accordance with section 352.04, 
 56.20  subdivision 9. 
 56.21     Subd. 5.  [FUND DISBURSEMENT RESTRICTED.] The health care 
 56.22  reimbursement fund must be disbursed only for the purposes 
 56.23  provided by law.  The expenses of the health care reimbursement 
 56.24  plan and any benefits provided by law must be paid from the 
 56.25  health care reimbursement fund.  Refunds under section 352G.10, 
 56.26  subdivisions 1 and 2, must be paid from the contributions prior 
 56.27  to being invested in the health care reimbursement fund. 
 56.28     Sec. 6.  [352G.06] [STATE TREASURER TO BE TREASURER OF THE 
 56.29  HEALTH CARE REIMBURSEMENT FUND.] 
 56.30     The state treasurer and the treasurer's successor is ex 
 56.31  officio treasurer of the health care reimbursement fund.  The 
 56.32  general bond to the state shall cover all liability for actions 
 56.33  as treasurer of these funds.  Funds of the system received by 
 56.34  the treasurer must be set aside in the state treasury and 
 56.35  credited to the health care reimbursement fund.  The treasurer 
 56.36  and the treasurer's successor shall deliver to the executive 
 57.1   director copies of all payroll abstracts of the state together 
 57.2   with the commissioner of finance's warrants covering the 
 57.3   deductions made on these payroll abstracts for the health care 
 57.4   reimbursement fund.  The executive director shall have a list 
 57.5   made of the commissioner of finance's warrants.  These warrants 
 57.6   must then be deposited with the state treasurer or the 
 57.7   treasurer's successor to be credited to the health care 
 57.8   reimbursement fund.  The treasurer shall pay out of this fund 
 57.9   only on warrants issued by the commissioner of finance, upon 
 57.10  abstracts signed by the director, or by the finance officer 
 57.11  designated by the director during the disability or the absence 
 57.12  of the director.  Abstracts for investments may be signed by the 
 57.13  executive director of the state board of investment. 
 57.14     Sec. 7.  [352G.07] [INVESTMENT BOARD TO INVEST FUNDS.] 
 57.15     The director shall, from time to time, certify to the state 
 57.16  board of investment any portions of the health care 
 57.17  reimbursement fund that in the judgment of the director are not 
 57.18  required for immediate use.  The state board of investment shall 
 57.19  invest and reinvest sums so transferred, or certified, in 
 57.20  securities that are duly authorized legal investments under 
 57.21  section 11A.24.  Amounts invested in the health care 
 57.22  reimbursement fund must be accounted for separately from the 
 57.23  retirement funds invested by the investment board. 
 57.24     Sec. 8.  [352G.08] [HEALTH CARE REIMBURSEMENT PLAN 
 57.25  BENEFITS.] 
 57.26     Subdivision 1.  [AGE AND SERVICE REQUIREMENTS.] After 
 57.27  separation from service, an employee who has attained the age of 
 57.28  at least 60, who has at least 15 years of allowable service, and 
 57.29  is immediately eligible for retirement or disability benefits or 
 57.30  an employee who qualifies for the rule of 90 regardless of age, 
 57.31  is entitled upon application to benefits from the health care 
 57.32  reimbursement plan as long as the employee has not accepted a 
 57.33  refund under section 352G.10, subdivisions 1 and 2, or has 
 57.34  repaid all refunds to the health care reimbursement plan under 
 57.35  section 352G.10, subdivision 4.  Benefits are not payable to an 
 57.36  eligible disabled employee who is no longer collecting 
 58.1   disability or retirement benefits. 
 58.2      Subd. 2.  [BENEFIT SCHEDULE.] Those meeting the eligibility 
 58.3   requirements in subdivision 1 will be entitled to the following 
 58.4   monthly benefits: 
 58.5                   Retirement Date           Monthly Benefits
 58.6            July 1, 2000 - June 30, 2002           $20
 58.7            July 1, 2002 - June 30, 2003           $25
 58.8            July 1, 2003 - June 30, 2004           $30
 58.9            July 1, 2004 - June 30, 2005           $40
 58.10           July 1, 2005 - June 30, 2006           $50
 58.11           July 1, 2006 - June 30, 2007           $60
 58.12           July 1, 2007 - June 30, 2008           $75
 58.13           July 1, 2008 - June 30, 2009           $90
 58.14           July 1, 2009 - June 30, 2010           $105
 58.15           July 1, 2010 - June 30, 2011           $120
 58.16           July 1, 2011 - June 30, 2012           $135
 58.17           July 1, 2012 - June 30, 2013           $150
 58.18           July 1, 2013 - and after               $165
 58.19     Subd. 3.  [PAYMENTS.] The first monthly payment will begin 
 58.20  on July 1, 2002, and will be based on the schedule above.  No 
 58.21  monthly payments will be made prior to July 1, 2002.  Payments 
 58.22  will be paid directly to the eligible retired employee, but only 
 58.23  upon providing documentation that the money is used to offset 
 58.24  health insurance premiums or any other health expenses to meet 
 58.25  the requirements under the Internal Revenue Code, section 401(h).
 58.26  At the discretion of the executive director, payments may be 
 58.27  added to the monthly retirement checks received by the eligible 
 58.28  retired employee. 
 58.29     Subd. 4.  [TERMINATION OF BENEFITS.] Monthly benefits will 
 58.30  terminate upon the death of the member and will not continue to 
 58.31  a survivor or designated beneficiary. 
 58.32     Sec. 9.  [352G.09] [ANNUAL INCREASES, CALCULATION OF HEALTH 
 58.33  INSURANCE PLAN INFLATION ADJUSTMENT.] 
 58.34     (a) Annually, following June 30, the Minnesota state 
 58.35  retirement system shall use the procedures in paragraph (b) to 
 58.36  determine whether an inflation adjustment is payable and to 
 59.1   determine the amount of the adjustment. 
 59.2      (b) If the medical inflation index increases from June 30 
 59.3   of the preceding year to June 30 of the current year, the 
 59.4   Minnesota state retirement system shall certify the percentage 
 59.5   increase.  The amount certified is the lesser of the medical 
 59.6   inflation index or three percent.  The board, at its discretion, 
 59.7   can decrease the adjustment in any year in order to maintain the 
 59.8   financial integrity of the health insurance plan which includes 
 59.9   avoiding projected unfunded liability.  The board will seek 
 59.10  advice from an approved actuary in determining if the inflation 
 59.11  adjustment should be lowered. 
 59.12     (c) If an increase is payable, it will be made the 
 59.13  following January 1.  An eligible retired employee who has been 
 59.14  receiving health insurance reimbursement benefits for at least 
 59.15  12 months as of the current June 30 is eligible to receive a 
 59.16  full insurance plan inflation adjustment.  An eligible retired 
 59.17  employee who has been receiving a health insurance benefit for 
 59.18  at least one full month, but less than 12 full months as of the 
 59.19  current June 30, is eligible to receive a partial inflation 
 59.20  adjustment as follows: 
 59.21            Month Retired     Fraction of the Increase 
 59.22             July                    11/12
 59.23             August                  10/12
 59.24             September               9/12
 59.25             October                 8/12
 59.26             November                7/12
 59.27             December                6/12
 59.28             January                 5/12
 59.29             February                4/12
 59.30             March                   3/12
 59.31             April                   2/12
 59.32             May                     1/12
 59.33     Sec. 10.  [352G.10] [REFUND OF EMPLOYEE CONTRIBUTIONS.] 
 59.34     Subdivision 1.  [REFUND.] An ineligible terminated 
 59.35  employee, an eligible retired employee who has not yet begun 
 59.36  collecting benefits, or an employee who moves to a state 
 60.1   position no longer covered by chapter 3A, 352, 352B, 352D, or 
 60.2   490 may apply for a refund provided in subdivision 2.  
 60.3   Application for a refund may be made after the termination of 
 60.4   service if the applicant has not again become an employee 
 60.5   required to be covered by the system. 
 60.6      Subd. 2.  [AMOUNT OF REFUND.] The refund payable to a 
 60.7   person defined in subdivision 1 is an amount equal to employee 
 60.8   contributions plus interest at a rate of five percent per year 
 60.9   compounded annually.  The amount of the refund is paid from 
 60.10  contributions paid under section 352G.05 prior to the money 
 60.11  being invested in the health care reimbursement fund. 
 60.12     Subd. 3.  [TERMINATION OF RIGHTS.] When an ineligible 
 60.13  terminated employee or an eligible retired employee accepts a 
 60.14  refund as provided in subdivision 2, all existing service and 
 60.15  all rights and benefits to which the employee was entitled 
 60.16  before accepting the refund terminate. 
 60.17     Subd. 4.  [REPAYMENT OF REFUND.] An included participant 
 60.18  may repay a refund paid under subdivision 2 by paying the amount 
 60.19  refunded plus 8.5 percent interest compounded annually.  All 
 60.20  refunds must be paid before termination or within one month 
 60.21  following termination of state service. 
 60.22     Sec. 11.  [352G.11] [PAYMENTS UPON THE DEATH OF AN INCLUDED 
 60.23  PARTICIPANT.] 
 60.24     Upon the death of an included participant or a person not 
 60.25  yet collecting monthly benefits under this section, the 
 60.26  designated beneficiary is entitled to a refund of contributions 
 60.27  plus five percent interest, compounded annually. 
 60.28     Sec. 12.  [352G.12] [PAYMENT UPON THE DEATH OF AN ELIGIBLE 
 60.29  RETIRED EMPLOYEE.] 
 60.30     Upon the death of an eligible retired employee who has 
 60.31  started collecting monthly benefits, the designated beneficiary 
 60.32  is entitled to a refund of the eligible retired employee's 
 60.33  contributions plus three percent interest compounded annually 
 60.34  until the date of termination of service less the monthly 
 60.35  benefits that have been paid. 
 60.36     Sec. 13.  [FIRST INCREASE.] 
 61.1      An eligible or retired eligible employee would first be 
 61.2   eligible for an increase on January 1, 2003.  The required 
 61.3   reserves to support the payment must be transferred on July 1, 
 61.4   2001. 
 61.5      Sec. 14.  [UNLIMITED RIGHT TO AMEND.] 
 61.6      Notwithstanding any other provision of the health benefit 
 61.7   fund and provisions of the Internal Revenue Code, the provisions 
 61.8   governing the health care reimbursement plan may be amended at 
 61.9   any time and in any manner for any reason whatsoever.  This 
 61.10  right to amend includes, but is not limited to, the right to 
 61.11  reduce or eliminate prospectively or retroactively any or all 
 61.12  health benefits under the health care reimbursement plan for any 
 61.13  or all persons who may be members, retirees, and other 
 61.14  recipients, or otherwise may be entitled to health benefits 
 61.15  under this plan.  Benefits may be reduced or eliminated for any 
 61.16  or all persons including members, retirees, and other 
 61.17  recipients, even if they are then entitled to or are receiving 
 61.18  health benefits. 
 61.19     Sec. 15.  [EFFECTIVE DATE.] 
 61.20     Sections 1 to 14 are effective July 1, 2000. 
 61.21                             ARTICLE 3 
 61.22                 MSRS-CORRECTIONAL PLAN MEMBERSHIP 
 61.23                             INCLUSIONS 
 61.24     Section 1.  Minnesota Statutes 1998, section 352.91, 
 61.25  subdivision 3c, is amended to read: 
 61.26     Subd. 3c.  [NURSING PERSONNEL.] (a) "Covered correctional 
 61.27  service" means service by a state employee in one of the 
 61.28  employment positions at a correctional facility or at the 
 61.29  Minnesota security hospital specified in paragraph (b), provided 
 61.30  that at least 75 percent of the employee's working time is spent 
 61.31  in direct contact with inmates or patients and the fact of this 
 61.32  direct contact is certified to the executive director by the 
 61.33  appropriate commissioner, unless the person elects to retain the 
 61.34  current retirement coverage under Laws 1996, chapter 408, 
 61.35  article 8, section 21. 
 61.36     (b) The employment positions are as follows: 
 62.1      (1) registered nurse - senior; 
 62.2      (2) registered nurse; 
 62.3      (3) registered nurse - principal; and 
 62.4      (4) licensed practical nurse 2; and 
 62.5      (5) registered nurse practitioner. 
 62.6      Sec. 2.  Minnesota Statutes 1998, section 352.91, is 
 62.7   amended by adding a subdivision to read: 
 62.8      Subd. 3f.  [ADDITIONAL DEPARTMENT OF HUMAN SERVICES 
 62.9   PERSONNEL.] (a) "Covered correctional service" means service by 
 62.10  a state employee in one of the employment positions specified in 
 62.11  paragraph (b) at the Minnesota security hospital or the 
 62.12  Minnesota sexual psychopathic personality treatment center, 
 62.13  provided that at least 75 percent of the employee's working time 
 62.14  is spent in direct contact with patients and the fact of this 
 62.15  direct contact is certified to the executive director by the 
 62.16  commissioner of human services. 
 62.17     (b) The employment positions are: 
 62.18     (1) behavior analyst 2; 
 62.19     (2) licensed practical nurse 1; 
 62.20     (3) office and administrative specialist senior; 
 62.21     (4) psychologist 2; 
 62.22     (5) social worker specialist; 
 62.23     (6) behavior analyst 3; and 
 62.24     (7) social worker senior. 
 62.25     Sec. 3.  Minnesota Statutes 1998, section 352.91, is 
 62.26  amended by adding a subdivision to read: 
 62.27     Subd. 3g.  [ADDITIONAL CORRECTIONS DEPARTMENT PERSONNEL.] 
 62.28  "Covered correctional service" means service by a state employee 
 62.29  in one of the employment positions at the designated Minnesota 
 62.30  correctional facility specified in paragraph (b), provided that 
 62.31  at least 75 percent of the employee's working time is spent in 
 62.32  direct contact with inmates and the fact of this direct contact 
 62.33  is certified to the executive director by the commissioner of 
 62.34  corrections. 
 62.35     (b) The employment positions and correctional facilities 
 62.36  are: 
 63.1      (1) corrections discipline unit supervisor, at the 
 63.2   Minnesota correctional facility-Faribault, the Minnesota 
 63.3   correctional facility-Lino Lakes, the Minnesota correctional 
 63.4   facility-Oak Park Heights, and the Minnesota correctional 
 63.5   facility-St. Cloud; 
 63.6      (2) dental assistant registered, at the Minnesota 
 63.7   correctional facility-Faribault, the Minnesota correctional 
 63.8   facility-Lino Lakes, the Minnesota correctional facility-Moose 
 63.9   Lake, the Minnesota correctional facility-Oak Park Heights, and 
 63.10  the Minnesota correctional facility-Red Wing; 
 63.11     (3) dental hygienist, at the Minnesota correctional 
 63.12  facility-Shakopee; 
 63.13     (4) psychologist 2, at the Minnesota correctional 
 63.14  facility-Faribault, the Minnesota correctional facility-Lino 
 63.15  Lakes, the Minnesota correctional facility-Moose Lake, the 
 63.16  Minnesota correctional facility-Oak Park Heights, the Minnesota 
 63.17  correctional facility-Red Wing, the Minnesota correctional 
 63.18  facility-St. Cloud, the Minnesota correctional 
 63.19  facility-Shakopee, and the Minnesota correctional 
 63.20  facility-Stillwater; and 
 63.21     (5) sentencing to service crew leader involved with the 
 63.22  inmate community work crew program, at the Minnesota 
 63.23  correctional facility-Faribault and the Minnesota correctional 
 63.24  facility-Lino Lakes. 
 63.25     Sec. 4.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
 63.26  PERSONS.] 
 63.27     Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE 
 63.28  COVERAGE.] (a) An employee who has future retirement coverage 
 63.29  transferred to the correctional employees retirement plan under 
 63.30  section 1 or 2 is entitled to elect to obtain prior service 
 63.31  credit for eligible state service performed after June 30, 1975, 
 63.32  and before the first day of the first full pay period beginning 
 63.33  after June 30, 2000, with the department of corrections or the 
 63.34  department of human services at the Minnesota security hospital 
 63.35  or the Minnesota sexual psychopathic personality treatment 
 63.36  center.  All eligible prior service credit must be purchased. 
 64.1      (b) For purposes of section 1, 2, or 3, eligible state 
 64.2   service with the department of corrections or the department of 
 64.3   human services is any prior period of continuous service after 
 64.4   June 30, 1975, performed as an employee of the department of 
 64.5   corrections or the department of human services that would have 
 64.6   been eligible for the correctional employees retirement plan 
 64.7   coverage under section 1, 2, or 3 if that prior service had been 
 64.8   performed after the first day of the first full pay period 
 64.9   beginning after June 30, 2000, rather than before that date.  
 64.10  Service is continuous if there has been no period of 
 64.11  discontinuation of eligible state service for a period greater 
 64.12  than 180 calendar days. 
 64.13     (c) The commissioner of corrections or the commissioner of 
 64.14  human services shall certify eligible state service to the 
 64.15  executive director of the Minnesota state retirement system. 
 64.16     (d) A covered correctional plan employee employed on July 
 64.17  1, 2000, who has past service in a job classification covered 
 64.18  under section 1, 2, or 3 on July 1, 2000, is entitled to 
 64.19  purchase the past service if the applicable department certifies 
 64.20  that the employee met the eligibility requirements for 
 64.21  coverage.  The employee shall pay the difference between the 
 64.22  employee contributions actually paid during the period and what 
 64.23  should have been paid under the correctional employees 
 64.24  retirement plan.  Payment for past service must be completed by 
 64.25  June 30, 2002. 
 64.26     Subd. 2.  [PAYMENT FOR PAST SERVICE.] (a) An employee 
 64.27  electing to obtain prior service credit under subdivision 1 must 
 64.28  pay an additional employee contribution for that prior service.  
 64.29  The additional member contribution is the contribution 
 64.30  differential percentage applied to the actual salary paid to the 
 64.31  employee during the period of the prior eligible state service, 
 64.32  plus interest at the rate of six percent per annum, compounded 
 64.33  annually.  The contribution differential percentage is the 
 64.34  difference between 4.9 percent of salary and the applicable 
 64.35  employee contribution rate of the general state employees 
 64.36  retirement plan during the prior eligible state service. 
 65.1      (b) The additional member contribution must be paid only in 
 65.2   a lump sum.  Payment must accompany the election to obtain prior 
 65.3   service credit.  No election of payment may be made by the 
 65.4   person or accepted by the executive director after June 30, 2002.
 65.5      Subd. 3.  [TRANSFER OF ASSETS.] Assets must be transferred 
 65.6   from the general state employees retirement plan to the 
 65.7   correctional employees retirement plan, in an amount equal to 
 65.8   the present value of benefits earned under the general employees 
 65.9   retirement plan for each employee transferring to the 
 65.10  correctional employees retirement plan, as determined by the 
 65.11  actuary retained by the legislative commission on pensions and 
 65.12  retirement in accordance with Minnesota Statutes, section 
 65.13  356.215.  The transfer of assets must be made within 45 days 
 65.14  after the employee elects to transfer coverage to the 
 65.15  correctional employees retirement plan. 
 65.16     Subd. 4.  [EFFECT OF THE ASSET TRANSFER.] Upon transfer of 
 65.17  assets in subdivision 3, service credit in the general state 
 65.18  employees plan of the Minnesota state retirement system is 
 65.19  forfeited and may not be reinstated.  The service credit and 
 65.20  transferred assets must be credited to the correctional 
 65.21  employees retirement plan. 
 65.22     Subd. 5.  [PAYMENT OF ACTUARIAL CALCULATION COSTS.] (a) The 
 65.23  expense of the legislative commission on pensions and retirement 
 65.24  attributable to the calculations of its consulting actuary under 
 65.25  subdivision 3 must be reimbursed by the department of 
 65.26  corrections and the department of human services. 
 65.27     (b) The expense reimbursement under paragraph (a) must be 
 65.28  allocated between the two departments in a manner that is 
 65.29  jointly agreeable.  If no allocation procedure is developed by 
 65.30  the commissioner of corrections and the commissioner of human 
 65.31  services, the cost must be allocated on an equally shared basis. 
 65.32     (c) Payment of the expense reimbursement to the legislative 
 65.33  commission on pensions and retirement is due 30 days after the 
 65.34  receipt of the reimbursement request from the executive director 
 65.35  of the legislative commission on pensions and retirement. 
 65.36     Sec. 5.  [REPEALER.] 
 66.1      Minnesota Statutes 1998, section 352.91, subdivision 4, is 
 66.2   repealed. 
 66.3      Sec. 6.  [EFFECTIVE DATE.] 
 66.4      Sections 1 to 5 are effective July 1, 2000. 
 66.5                              ARTICLE 4 
 66.6                        JUDGES RETIREMENT PLAN 
 66.7                            MODIFICATIONS 
 66.8      Section 1.  Minnesota Statutes 1998, section 352D.02, 
 66.9   subdivision 1, is amended to read: 
 66.10     Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
 66.11  paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 
 66.12  are in the unclassified service of the state or metropolitan 
 66.13  council and are eligible for coverage under the general state 
 66.14  employees retirement plan under chapter 352, are participants in 
 66.15  the unclassified program under this chapter unless the employee 
 66.16  gives notice to the executive director of the Minnesota state 
 66.17  retirement system within one year following the commencement of 
 66.18  employment in the unclassified service that the employee desires 
 66.19  coverage under the general state employees retirement plan.  For 
 66.20  the purposes of this chapter, an employee who does not file 
 66.21  notice with the executive director is deemed to have exercised 
 66.22  the option to participate in the unclassified plan. 
 66.23     (b) Persons referenced in paragraph (c), clauses (1) and 
 66.24  (5), are participants in the unclassified program under this 
 66.25  chapter unless the person is eligible to elect different 
 66.26  coverage under section 3A.07 or 352C.011 and, after July 1, 
 66.27  1998, elects retirement coverage by the applicable alternative 
 66.28  retirement plan.  Persons referenced in paragraph (c), clause 
 66.29  (16), are participants in the unclassified program under this 
 66.30  chapter for judicial employment in excess of the service credit 
 66.31  limit in section 490.121, subdivision 22. 
 66.32     (c) Enumerated employees and referenced persons are: 
 66.33     (1) the governor, the lieutenant governor, the secretary of 
 66.34  state, the state auditor, the state treasurer, and the attorney 
 66.35  general; 
 66.36     (2) an employee in the office of the governor, lieutenant 
 67.1   governor, secretary of state, state auditor, state treasurer, 
 67.2   attorney general; 
 67.3      (3) an employee of the state board of investment; 
 67.4      (4) the head of a department, division, or agency created 
 67.5   by statute in the unclassified service, an acting department 
 67.6   head subsequently appointed to the position, or an employee 
 67.7   enumerated in section 15A.0815 or 15A.083, subdivision 4; 
 67.8      (5) a member of the legislature; 
 67.9      (6) a permanent, full-time unclassified employee of the 
 67.10  legislature or a commission or agency of the legislature or a 
 67.11  temporary legislative employee having shares in the supplemental 
 67.12  retirement fund as a result of former employment covered by this 
 67.13  chapter, whether or not eligible for coverage under the 
 67.14  Minnesota state retirement system; 
 67.15     (7) a person who is employed in a position established 
 67.16  under section 43A.08, subdivision 1, clause (3), or in a 
 67.17  position authorized under a statute creating or establishing a 
 67.18  department or agency of the state, which is at the deputy or 
 67.19  assistant head of department or agency or director level; 
 67.20     (8) the regional administrator, or executive director of 
 67.21  the metropolitan council, general counsel, division directors, 
 67.22  operations managers, and other positions as designated by the 
 67.23  council, all of which may not exceed 27 positions at the council 
 67.24  and the chair, provided that upon initial designation of all 
 67.25  positions provided for in this clause, no further designations 
 67.26  or redesignations may be made without approval of the board of 
 67.27  directors of the Minnesota state retirement system; 
 67.28     (9) the executive director, associate executive director, 
 67.29  and not to exceed nine positions of the higher education 
 67.30  services office in the unclassified service, as designated by 
 67.31  the higher education services office before January 1, 1992, or 
 67.32  subsequently redesignated with the approval of the board of 
 67.33  directors of the Minnesota state retirement system, unless the 
 67.34  person has elected coverage by the individual retirement account 
 67.35  plan under chapter 354B; 
 67.36     (10) the clerk of the appellate courts appointed under 
 68.1   article VI, section 2, of the Constitution of the state of 
 68.2   Minnesota; 
 68.3      (11) the chief executive officers of correctional 
 68.4   facilities operated by the department of corrections and of 
 68.5   hospitals and nursing homes operated by the department of human 
 68.6   services; 
 68.7      (12) an employee whose principal employment is at the state 
 68.8   ceremonial house; 
 68.9      (13) an employee of the Minnesota educational computing 
 68.10  corporation; 
 68.11     (14) an employee of the world trade center board; and 
 68.12     (15) an employee of the state lottery board who is covered 
 68.13  by the managerial plan established under section 43A.18, 
 68.14  subdivision 3; and 
 68.15     (16) a judge who has exceeded the service credit limit in 
 68.16  section 490.121, subdivision 22. 
 68.17     Sec. 2.  Minnesota Statutes 1998, section 352D.04, 
 68.18  subdivision 2, is amended to read: 
 68.19     Subd. 2.  [CONTRIBUTION RATES.] (a) The money used to 
 68.20  purchase shares under this section is the employee and employer 
 68.21  contributions provided in this subdivision. 
 68.22     (b) The employee contribution is an amount equal to the 
 68.23  employee contribution specified in section 352.04, subdivision 2.
 68.24     (c) The employer contribution is an amount equal to six 
 68.25  percent of salary.  
 68.26     (d) These contributions must be made in the manner provided 
 68.27  in section 352.04, subdivisions 4, 5, and 6.  
 68.28     (e) For members of the legislature, the contributions under 
 68.29  this subdivision also must be made on per diem payments received 
 68.30  during a regular or special legislative session, but may not be 
 68.31  made on per diem payments received outside of a regular or 
 68.32  special legislative session, on the additional compensation 
 68.33  attributable to a leadership position under section 3.099, 
 68.34  subdivision 3, living expense payments under section 3.101, or 
 68.35  special session living expense payments under section 3.103. 
 68.36     (f) For a judge who is a member of the unclassified plan 
 69.1   under section 352D.02, subdivision 1, paragraph (c), clause 
 69.2   (16), the employee contribution rate is eight percent of salary, 
 69.3   and there is no employer contribution. 
 69.4      Sec. 3.  Minnesota Statutes 1998, section 356.30, 
 69.5   subdivision 1, is amended to read: 
 69.6      Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) 
 69.7   Notwithstanding any provisions to the contrary of the laws 
 69.8   governing the funds enumerated in subdivision 3, a person who 
 69.9   has met the qualifications of clause (2) may elect to receive a 
 69.10  retirement annuity from each fund in which the person has at 
 69.11  least six months allowable service, based on the allowable 
 69.12  service in each fund, subject to the provisions of clause (3).  
 69.13     (2) A person may receive upon retirement a retirement 
 69.14  annuity from each fund in which the person has at least six 
 69.15  months allowable service, and augmentation of a deferred annuity 
 69.16  calculated under the laws governing each public pension plan or 
 69.17  fund named in subdivision 3, from the date the person terminated 
 69.18  all public service if: 
 69.19     (a) the person has allowable service totaling an amount 
 69.20  that allows the person to receive an annuity in any two or more 
 69.21  of the enumerated funds; and 
 69.22     (b) the person has not begun to receive an annuity from any 
 69.23  enumerated fund or the person has made application for benefits 
 69.24  from all funds and the effective dates of the retirement annuity 
 69.25  with each fund under which the person chooses to receive an 
 69.26  annuity are within a one-year period.  
 69.27     (3) The retirement annuity from each fund must be based 
 69.28  upon the allowable service in each fund, except that:  
 69.29     (a) The laws governing annuities must be the law in effect 
 69.30  on the date of termination from the last period of public 
 69.31  service under a covered fund with which the person earned a 
 69.32  minimum of one-half year of allowable service credit during that 
 69.33  employment.  
 69.34     (b) The "average salary" on which the annuity from each 
 69.35  covered fund in which the employee has credit in a formula plan 
 69.36  shall be based on the employee's highest five successive years 
 70.1   of covered salary during the entire service in covered funds.  
 70.2      (c) The formula percentages to be used by each fund must be 
 70.3   those percentages prescribed by each fund's formula as continued 
 70.4   for the respective years of allowable service from one fund to 
 70.5   the next, recognizing all previous allowable service with the 
 70.6   other covered funds.  
 70.7      (d) Allowable service in all the funds must be combined in 
 70.8   determining eligibility for and the application of each fund's 
 70.9   provisions in respect to actuarial reduction in the annuity 
 70.10  amount for retirement prior to normal retirement.  
 70.11     (e) The annuity amount payable for any allowable service 
 70.12  under a nonformula plan of a covered fund must not be affected 
 70.13  but such service and covered salary must be used in the above 
 70.14  calculation.  
 70.15     (f) This section shall not apply to any person whose final 
 70.16  termination from the last public service under a covered fund is 
 70.17  prior to May 1, 1975.  
 70.18     (g) For the purpose of computing annuities under this 
 70.19  section the formula percentages used by any covered fund, except 
 70.20  the public employees police and fire fund, the judges retirement 
 70.21  fund, and the state patrol retirement fund, must not exceed the 
 70.22  percent specified in section 356.19, subdivision 4, per year of 
 70.23  service for any year of service or fraction thereof.  The 
 70.24  formula percentage used by the public employees police and fire 
 70.25  fund and the state patrol retirement fund must not exceed the 
 70.26  percent specified in section 356.19, subdivision 6, per year of 
 70.27  service for any year of service or fraction thereof.  The 
 70.28  formula percentage used by the judges retirement fund must not 
 70.29  exceed the percent specified in section 356.19, subdivision 8, 
 70.30  per year of service for any year of service or fraction 
 70.31  thereof.  The formula percentage used by the legislators 
 70.32  retirement plan and the elective state officers retirement must 
 70.33  not exceed 2.5 percent, but this limit does not apply to the 
 70.34  adjustment provided under section 3A.02, subdivision 1, 
 70.35  paragraph (c), or 352C.031, paragraph (b). 
 70.36     (h) Any period of time for which a person has credit in 
 71.1   more than one of the covered funds must be used only once for 
 71.2   the purpose of determining total allowable service.  
 71.3      (i) If the period of duplicated service credit is more than 
 71.4   six months, or the person has credit for more than six months 
 71.5   with each of the funds, each fund shall apply its formula to a 
 71.6   prorated service credit for the period of duplicated service 
 71.7   based on a fraction of the salary on which deductions were paid 
 71.8   to that fund for the period divided by the total salary on which 
 71.9   deductions were paid to all funds for the period.  
 71.10     (j) If the period of duplicated service credit is less than 
 71.11  six months, or when added to other service credit with that fund 
 71.12  is less than six months, the service credit must be ignored and 
 71.13  a refund of contributions made to the person in accord with that 
 71.14  fund's refund provisions.  
 71.15     Sec. 4.  Minnesota Statutes 1998, section 490.121, 
 71.16  subdivision 4, is amended to read: 
 71.17     Subd. 4.  [ALLOWABLE SERVICE.] "Allowable service" means a 
 71.18  whole year, or any fraction thereof, subject to the service 
 71.19  credit limit in subdivision 22, served as a judge at any time, 
 71.20  or served as a referee in probate for all referees in probate 
 71.21  who were in office prior to January 1, 1974. 
 71.22     Sec. 5.  Minnesota Statutes 1998, section 490.121, is 
 71.23  amended by adding a subdivision to read: 
 71.24     Subd. 22.  [SERVICE CREDIT LIMIT.] "Service credit limit" 
 71.25  means the greater of:  (1) 24 years of allowable service under 
 71.26  chapter 490; or (2) for judges with allowable service rendered 
 71.27  prior to July 1, 1980, the number of years of allowable service 
 71.28  under chapter 490, which, when multiplied by the percentage 
 71.29  listed in section 356.19, subdivision 7 or 8, whichever is 
 71.30  applicable to each year of service, equals 76.8. 
 71.31     Sec. 6.  Minnesota Statutes 1998, section 490.123, 
 71.32  subdivision 1a, is amended to read: 
 71.33     Subd. 1a.  [MEMBER CONTRIBUTION RATES.] (a) A judge who is 
 71.34  covered by the federal old age, survivors, disability, and 
 71.35  health insurance program whose service does not exceed the 
 71.36  service credit limit in section 490.121, subdivision 22, shall 
 72.1   contribute to the fund from each salary payment a sum equal to 
 72.2   8.00 percent of salary.  
 72.3      (b) A judge not so covered whose service does not exceed 
 72.4   the service credit limit in section 490.121, subdivision 22, 
 72.5   shall contribute to the fund from each salary payment a sum 
 72.6   equal to 8.15 percent of salary. 
 72.7      (c) The contribution under this subdivision is payable by 
 72.8   salary deduction. 
 72.9      Sec. 7.  Minnesota Statutes 1998, section 490.123, 
 72.10  subdivision 1b, is amended to read: 
 72.11     Subd. 1b.  [EMPLOYER CONTRIBUTION RATE.] The employer 
 72.12  contribution rate to the fund on behalf of a judge is 20.5 
 72.13  percent of salary and continues after a judge exceeds the 
 72.14  service credit limit in section 490.121, subdivision 22. 
 72.15     The employer contribution must be paid by the state court 
 72.16  administrator and is payable at the same time as member 
 72.17  contributions under subdivision 1a, or employee contributions to 
 72.18  the unclassified plan in chapter 352D for judges whose service 
 72.19  exceeds the limit in section 490.121, subdivision 22, are 
 72.20  remitted. 
 72.21     Sec. 8.  Minnesota Statutes 1998, section 490.124, 
 72.22  subdivision 1, is amended to read: 
 72.23     Subdivision 1.  [BASIC RETIREMENT ANNUITY.] Except as 
 72.24  qualified hereinafter from and after mandatory retirement date, 
 72.25  normal retirement date, early retirement date, or one year from 
 72.26  the disability retirement date, as the case may be, a retirement 
 72.27  annuity shall be payable to a retiring judge from the judges' 
 72.28  retirement fund in an amount equal to:  (1) the percent 
 72.29  specified in section 356.19, subdivision 7, multiplied by the 
 72.30  judge's final average compensation multiplied by the number of 
 72.31  years and fractions of years of allowable service rendered prior 
 72.32  to July 1, 1980; plus (2) the percent specified in section 
 72.33  356.19, subdivision 8, multiplied by the judge's final average 
 72.34  compensation multiplied by the number of years and fractions of 
 72.35  years of allowable service rendered after June 30, 1980; 
 72.36  provided that the annuity must not exceed 70 percent of the 
 73.1   judge's annual salary for the 12 months immediately preceding 
 73.2   retirement.  Service that exceeds the service credit limit in 
 73.3   section 490.121, subdivision 22, must be excluded in calculating 
 73.4   the retirement annuity, but compensation earned during this 
 73.5   service must be used in determining a judge's final average 
 73.6   compensation and calculating the retirement annuity.  
 73.7      Sec. 9.  [PRIOR SERVICE.] 
 73.8      This section applies to a person who is a judge on July 1, 
 73.9   2000, and whose service under chapter 490 on that date exceeds 
 73.10  the service credit limit in Minnesota Statutes, section 490.121, 
 73.11  subdivision 22.  A judge to whom this section applies may elect 
 73.12  to have money transferred from the judges' plan to the judge's 
 73.13  account in the unclassified employees plan in Minnesota 
 73.14  Statutes, chapter 352D.  The amount to be transferred is eight 
 73.15  percent of the salary the judge earned after reaching the 
 73.16  service credit limit defined in Minnesota Statutes, section 
 73.17  490.121, subdivision 22.  A judge electing this transfer 
 73.18  forfeits all service credit under Minnesota Statutes, chapter 
 73.19  490, that exceeds the limit in Minnesota Statutes, section 
 73.20  490.121, subdivision 22.  An election under this section must be 
 73.21  made before retirement as a judge, and within 120 days of the 
 73.22  effective date of this section.  The election must be made on a 
 73.23  form and in a manner specified by the executive director of the 
 73.24  Minnesota state retirement system. 
 73.25     Sec. 10.  [EFFECTIVE DATE.] 
 73.26     Sections 1 to 9 are effective July 1, 2000.