1.1                          A bill for an act 
  1.2             relating to local government; delaying the expiration 
  1.3             of an applicability provision relating to restrictions 
  1.4             on corporations created by political subdivisions; 
  1.5             establishing a task force to make determinations and 
  1.6             propose legislation relating to establishment of 
  1.7             corporations by political subdivisions; amending 
  1.8             Minnesota Statutes 1998, section 465.715, subdivision 
  1.9             1a. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 465.715, 
  1.12  subdivision 1a, is amended to read: 
  1.13     Subd. 1a.  [APPLICATION.] Except as provided by subdivision 
  1.14  2, subdivision 1 only applies to a corporation for which a 
  1.15  certificate of incorporation is issued by the secretary of state 
  1.16  on or after June 1, 1997.  A corporation that had been issued a 
  1.17  certificate of incorporation before June 1, 1997, may continue 
  1.18  to operate as if it had been created in compliance with 
  1.19  subdivision 1.  This subdivision expires July 1, 1999 2001. 
  1.20     Sec. 2.  [TASK FORCE ON CORPORATIONS CREATED BY POLITICAL 
  1.21  SUBDIVISIONS.] 
  1.22     Subdivision 1.  [ESTABLISHED; PURPOSE.] (a) A task force on 
  1.23  corporations created by political subdivisions is established to 
  1.24  review and consider the findings and recommendations of the 
  1.25  January 29, 1999, report of the state auditor on corporations 
  1.26  created by public entities and to determine: 
  1.27     (1) whether existing public corporations established by 
  2.1   political subdivisions should be authorized to continue as 
  2.2   public corporations, be dissolved, or be restructured as private 
  2.3   corporations; 
  2.4      (2) whether political subdivisions of the state should be 
  2.5   authorized to create new corporations, and if so, under general 
  2.6   law or special law, and for what purposes; and 
  2.7      (3) what requirements or restrictions imposed by state law 
  2.8   on political subdivisions should be imposed on existing public 
  2.9   corporations that are authorized to continue as public 
  2.10  corporations.  
  2.11     (b) The requirements or restrictions under paragraph (a), 
  2.12  clause (3), may relate to the powers and limitations of the 
  2.13  public corporations, including, but not limited to, the 
  2.14  applicability of laws such as those relating to open meetings, 
  2.15  data practices, contracting, compensation of employees and 
  2.16  officers, budgeting, auditing, tort liability, debt limitations, 
  2.17  investments, and conflicts of interests. 
  2.18     (c) By December 31, 1999, the task force shall report to 
  2.19  the chairs of the house and senate committees with jurisdiction 
  2.20  over local government issues.  The report must include proposed 
  2.21  legislation to implement the task force's recommendations. 
  2.22     Subd. 2.  [MEMBERS.] (a) The task force consists of 11 
  2.23  voting members, appointed as follows: 
  2.24     (1) two state representatives, one appointed by the speaker 
  2.25  of the house, and one appointed by the minority caucus leader; 
  2.26     (2) two state senators, appointed by the subcommittee on 
  2.27  committees of the committee on rules and administration, at 
  2.28  least one of whom must be a member of the minority caucus; 
  2.29     (3) two representatives of cities, appointed by the league 
  2.30  of Minnesota cities, one of whom must be a representative of an 
  2.31  existing corporation created by a city; 
  2.32     (4) two representatives of counties, appointed by the 
  2.33  association of Minnesota counties, one of whom must be a 
  2.34  representative of an existing corporation created by a county; 
  2.35     (5) two representatives of school districts, appointed by 
  2.36  the Minnesota school boards association, one of whom must be a 
  3.1   representative of an existing corporation created by a school 
  3.2   district; and 
  3.3      (6) the state auditor or her designee. 
  3.4      (b) In addition, the attorney general or his designee and 
  3.5   the secretary of state or her designee shall serve on the task 
  3.6   force ex officio as nonvoting members.  Members must be 
  3.7   appointed as soon as practicable after the effective date of 
  3.8   this section.  Vacancies and removal of members is governed by 
  3.9   Minnesota Statutes, section 15.059, subdivision 4. 
  3.10     (c) The state auditor shall convene the first meeting of 
  3.11  the task force as soon as practicable after the members are 
  3.12  appointed, but no later than September 1, 1999, at which time 
  3.13  the task force shall elect its chair or co-chairs. 
  3.14     Subd. 3.  [STAFF AND ADMINISTRATIVE 
  3.15  ASSISTANCE.] Legislative staff shall provide staff and 
  3.16  administrative assistance to the task force. 
  3.17     Subd. 4.  [EXPIRATION.] This section expires June 30, 2000. 
  3.18     Sec. 3.  [EFFECTIVE DATE.] 
  3.19     This act is effective the day following final enactment.