1.1                          A bill for an act 
  1.2             relating to local government; removing the expiration 
  1.3             of corporations created by political subdivisions; 
  1.4             establishing a task force to develop legislation 
  1.5             relating to establishment of corporations by political 
  1.6             subdivisions; amending Minnesota Statutes 1998, 
  1.7             section 465.715, subdivision 1a. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 465.715, 
  1.10  subdivision 1a, is amended to read: 
  1.11     Subd. 1a.  [APPLICATION.] Except as provided by subdivision 
  1.12  2, subdivision 1 only applies to a corporation for which a 
  1.13  certificate of incorporation is issued by the secretary of state 
  1.14  on or after June 1, 1997.  A corporation that had been issued a 
  1.15  certificate of incorporation before June 1, 1997, may continue 
  1.16  to operate as if it had been created in compliance with 
  1.17  subdivision 1.  This subdivision expires July 1, 1999. 
  1.18     Sec. 2.  [TASK FORCE ON CORPORATIONS CREATED BY POLITICAL 
  1.19  SUBDIVISIONS.] 
  1.20     Subdivision 1.  [ESTABLISHED; PURPOSE.] A task force on 
  1.21  corporations created by political subdivisions is established to 
  1.22  review and consider the findings and recommendations of the 
  1.23  January 29, 1999, report of the state auditor on corporations 
  1.24  created by public entities and to determine: 
  1.25     (a) whether existing public corporations established by 
  1.26  political subdivisions should be authorized to continue, 
  2.1   dissolved, or restructured as private corporations; 
  2.2      (b) whether political subdivisions of the state should be 
  2.3   authorized to create new corporations, and if so, under general 
  2.4   law or special law, and for what purposes; and 
  2.5      (c) what requirements or restrictions imposed by state law 
  2.6   on political subdivisions should be imposed on corporations 
  2.7   established by political subdivisions, including, but not 
  2.8   limited to, requirements or restrictions relating to open 
  2.9   meetings, data practices, contracting, compensation of employees 
  2.10  and officers, budgeting, auditing, tort liability, debt 
  2.11  limitations, investments, and conflicts of interests. 
  2.12  By December 31, 1999, the task force shall report to the chairs 
  2.13  of the house and senate committees with jurisdiction over local 
  2.14  government issues.  The report must include proposed legislation 
  2.15  to implement the task force's recommendations. 
  2.16     Subd. 2.  [MEMBERS.] The task force consists of 13 members, 
  2.17  appointed as follows: 
  2.18     (a) three state representatives, two appointed by the 
  2.19  speaker of the house, one of whom the speaker shall appoint as 
  2.20  co-chair, and one appointed by the minority caucus leader; 
  2.21     (b) three state senators, appointed by the subcommittee on 
  2.22  committees of the committee on rules and administration, one of 
  2.23  whom must be appointed as co-chair, and at least one of whom 
  2.24  must be a member of the minority caucus; 
  2.25     (c) two representatives of cities, appointed by the league 
  2.26  of Minnesota cities, one of whom must be a representative of an 
  2.27  existing corporation created by a city; 
  2.28     (d) two representatives of counties, appointed by the 
  2.29  association of Minnesota counties, one of whom must be a 
  2.30  representative of an existing corporation created by a county; 
  2.31     (e) two representatives of school districts, appointed by 
  2.32  the Minnesota school boards association, one of whom must be a 
  2.33  representative of an existing corporation created by a school 
  2.34  district; and 
  2.35     (f) the state auditor or her designee. 
  2.36  Members must be appointed as soon as practicable after the 
  3.1   effective date of this section.  Vacancies and removal of 
  3.2   members is governed by Minnesota Statutes, section 15.059, 
  3.3   subdivision 4. 
  3.4      Subd. 3.  [STAFF AND ADMINISTRATIVE 
  3.5   ASSISTANCE.] Legislative staff shall provide staff and 
  3.6   administrative assistance to the task force. 
  3.7      Subd. 4.  [EXPIRATION.] This section expires June 30, 2000. 
  3.8      Sec. 3.  [EFFECTIVE DATE.] 
  3.9      This act is effective the day following final enactment.