1.1                          A bill for an act 
  1.2             relating to state government; updating references; 
  1.3             increasing the threshold project amount for designer 
  1.4             selection board approval; modifying building code 
  1.5             language; modifying state procurement provisions; 
  1.6             making permanent litigation proceeds settlement law; 
  1.7             eliminating a report; amending Minnesota Statutes 
  1.8             2002, sections 16B.054; 16B.24, subdivisions 1, 5; 
  1.9             16B.33, subdivision 3; 16B.61, subdivision 1a; 16B.62, 
  1.10            subdivision 1; 16C.08, subdivision 4; 16C.10, 
  1.11            subdivision 5; 16C.15; 16C.16, subdivision 7; 327A.01, 
  1.12            subdivision 2; repealing Minnesota Statutes 2002, 
  1.13            sections 16A.151, subdivision 5; 16C.18, subdivision 1.
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2002, section 16B.054, is 
  1.16  amended to read: 
  1.17     16B.054 [DEVELOPMENTAL DISABILITIES.] 
  1.18     The department of administration is designated as the 
  1.19  responsible agency to assist the Minnesota governor's council on 
  1.20  developmental disabilities in carrying out all responsibilities 
  1.21  under United States Code, title 42, section 6021 et seq. the 
  1.22  Developmental Disabilities Assistance and Bill of Rights Act of 
  1.23  2000, also known as United States Code, title 42, sections 15001 
  1.24  to 15115, and Public Law 106-402 (October 30, 2000, 106th 
  1.25  Congress), as well as those responsibilities relating to the 
  1.26  program which are not delegated to the council. 
  1.27     Sec. 2.  Minnesota Statutes 2002, section 16B.24, 
  1.28  subdivision 1, is amended to read: 
  1.29     Subdivision 1.  [OPERATION AND MAINTENANCE OF BUILDINGS.] 
  2.1   The commissioner is authorized to maintain and operate the state 
  2.2   capitol building and grounds, subject to whatever standards and 
  2.3   policies are set for its appearance and cleanliness by the 
  2.4   capitol area architectural and planning board and the 
  2.5   commissioner under section 15.50, subdivision 2, clause (j), and 
  2.6   all other buildings, cafeterias, and grounds in state-owned 
  2.7   buildings in the capitol area under section 15.50, subdivision 
  2.8   2, clause (a), the state department of public safety, bureau of 
  2.9   criminal apprehension building in St. Paul, the state department 
  2.10  of health building in Minneapolis, the Duluth government 
  2.11  services center in Duluth, 321 Grove Street buildings in St. 
  2.12  Paul, any other properties acquired by the department of 
  2.13  administration, and, when the commissioner considers it 
  2.14  advisable and practicable, any other building or premises owned 
  2.15  or rented by the state for the use of a state agency.  The 
  2.16  commissioner shall assign and reassign office space in the 
  2.17  capitol and state buildings to make an equitable division of 
  2.18  available space among agencies.  The commissioner shall 
  2.19  regularly update the long-range strategic plan for locating 
  2.20  agencies and shall follow the plan in assigning and reassigning 
  2.21  space to agencies.  The plan must include locational and urban 
  2.22  design criteria, a cost-analysis method to be used in weighing 
  2.23  state ownership against leasing of space in specific instances, 
  2.24  and a transportation management plan.  If the commissioner 
  2.25  determines that a deviation from the plan is necessary or 
  2.26  desirable in a specific instance, the commissioner shall provide 
  2.27  the legislature with a timely written explanation of the reasons 
  2.28  for the deviation.  The power granted in this subdivision does 
  2.29  not apply to state hospitals or to educational, penal, 
  2.30  correctional, or other institutions not enumerated in this 
  2.31  subdivision the control of which is vested by law in some other 
  2.32  agency.  
  2.33     Sec. 3.  Minnesota Statutes 2002, section 16B.24, 
  2.34  subdivision 5, is amended to read: 
  2.35     Subd. 5.  [RENTING OUT STATE PROPERTY.] (a)  [AUTHORITY.] 
  2.36  The commissioner may rent out state property, real or personal, 
  3.1   that is not needed for public use, if the rental is not 
  3.2   otherwise provided for or prohibited by law.  The property may 
  3.3   not be rented out for more than five years at a time without the 
  3.4   approval of the state executive council and may never be rented 
  3.5   out for more than 25 years.  A rental agreement may provide that 
  3.6   the state will reimburse a tenant for a portion of capital 
  3.7   improvements that the tenant makes to state real property if the 
  3.8   state does not permit the tenant to renew the lease at the end 
  3.9   of the rental agreement. 
  3.10     (b)  [RESTRICTIONS.] Paragraph (a) does not apply to state 
  3.11  trust fund lands, other state lands under the jurisdiction of 
  3.12  the department of natural resources, lands forfeited for 
  3.13  delinquent taxes, lands acquired under section 298.22, or lands 
  3.14  acquired under section 41.56 which are under the jurisdiction of 
  3.15  the department of agriculture.  
  3.16     (c)  [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
  3.17  Chapel, located within the boundaries of Fort Snelling State 
  3.18  Park, is available for use only on payment of a rental fee.  The 
  3.19  commissioner shall establish rental fees for both public and 
  3.20  private use.  The rental fee for private use by an organization 
  3.21  or individual must reflect the reasonable value of equivalent 
  3.22  rental space.  Rental fees collected under this section must be 
  3.23  deposited in the general fund.  
  3.24     (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
  3.25  shall establish rental rates for all living accommodations 
  3.26  provided by the state for its employees.  Money collected as 
  3.27  rent by state agencies pursuant to this paragraph must be 
  3.28  deposited in the state treasury and credited to the general fund.
  3.29     (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
  3.30  AGENCIES.] The commissioner may lease portions of the 
  3.31  state-owned buildings in the capitol complex, the capitol square 
  3.32  building, the health building, the Duluth government center, and 
  3.33  the building at 1246 University Avenue, St. Paul, Minnesota, to 
  3.34  state agencies and the court administrator on behalf of the 
  3.35  judicial branch of state government and charge rent on the basis 
  3.36  of space occupied.  Notwithstanding any law to the contrary, all 
  4.1   money collected as rent pursuant to the terms of this section 
  4.2   shall be deposited in the state treasury.  Money collected as 
  4.3   rent to recover the bond interest costs of a building funded 
  4.4   from the state bond proceeds fund shall be credited to the 
  4.5   general fund.  Money collected as rent to recover the 
  4.6   depreciation costs of a building funded from the state bond 
  4.7   proceeds fund and money collected as rent to recover capital 
  4.8   expenditures from capital asset preservation and replacement 
  4.9   appropriations and statewide building access appropriations 
  4.10  shall be credited to a segregated account in a special revenue 
  4.11  fund.  Money in the account is appropriated to the commissioner 
  4.12  to be expended for asset preservation projects as determined by 
  4.13  the commissioner.  Money collected as rent to recover the 
  4.14  depreciation and interest costs of a building built with other 
  4.15  state dedicated funds shall be credited to the dedicated fund 
  4.16  which funded the original acquisition or construction.  All 
  4.17  other money received shall be credited to the general services 
  4.18  revolving fund. 
  4.19     Sec. 4.  Minnesota Statutes 2002, section 16B.33, 
  4.20  subdivision 3, is amended to read: 
  4.21     Subd. 3.  [AGENCIES MUST REQUEST DESIGNER.] (a) 
  4.22  [APPLICATION.] Upon undertaking a project with an estimated cost 
  4.23  greater than $750,000 $2,000,000 or a planning project with 
  4.24  estimated fees greater than $60,000 $200,000, every user agency, 
  4.25  except the capitol area architectural and planning board, shall 
  4.26  submit a written request for a primary designer for its project 
  4.27  to the commissioner, who shall forward the request to the 
  4.28  board.  The University of Minnesota and the Minnesota state 
  4.29  colleges and universities shall follow the process in 
  4.30  subdivision 3a to select designers for their projects.  The 
  4.31  written request must include a description of the project, the 
  4.32  estimated cost of completing the project, a description of any 
  4.33  special requirements or unique features of the proposed project, 
  4.34  and other information which will assist the board in carrying 
  4.35  out its duties and responsibilities set forth in this section.  
  4.36     (b)  [REACTIVATED PROJECT.] If a project for which a 
  5.1   designer has been selected by the board becomes inactive, 
  5.2   lapses, or changes as a result of project phasing, insufficient 
  5.3   appropriations, or other reasons, the commissioner, the 
  5.4   Minnesota state colleges and universities, or the University of 
  5.5   Minnesota may, if the project is reactivated, retain the same 
  5.6   designer to complete the project.  
  5.7      (c)  [FEE LIMIT REACHED AFTER DESIGNER SELECTED.] If a 
  5.8   project initially estimated to be below the cost and planning 
  5.9   fee limits of this subdivision has its cost or planning fees 
  5.10  revised so that the limits are exceeded, the project must be 
  5.11  referred to the board for designer selection even if a primary 
  5.12  designer has already been selected.  In this event, the board 
  5.13  may, without conducting interviews, elect to retain the 
  5.14  previously selected designer if it determines that the interests 
  5.15  of the state are best served by that decision and shall notify 
  5.16  the commissioner of its determination. 
  5.17     Sec. 5.  Minnesota Statutes 2002, section 16B.61, 
  5.18  subdivision 1a, is amended to read: 
  5.19     Subd. 1a.  [ADMINISTRATION BY COMMISSIONER.] The 
  5.20  commissioner shall administer and enforce the State Building 
  5.21  Code as a municipality with respect to public buildings and 
  5.22  state licensed facilities in the state.  The commissioner shall 
  5.23  establish appropriate permit, plan review, and inspection fees 
  5.24  for public buildings and state licensed facilities.  Fees and 
  5.25  surcharges for public buildings and state licensed facilities 
  5.26  must be remitted to the commissioner, who shall deposit them in 
  5.27  the state treasury for credit to the special revenue fund. 
  5.28     Municipalities other than the state having a contractual an 
  5.29  agreement with the commissioner for code administration and 
  5.30  enforcement service for public buildings and state licensed 
  5.31  facilities shall charge their customary fees, including 
  5.32  surcharge, to be paid directly to the contractual jurisdiction 
  5.33  by the applicant seeking authorization to construct a public 
  5.34  building or a state licensed facility.  The commissioner shall 
  5.35  contract sign an agreement with a municipality other than the 
  5.36  state for plan review, code administration, and code enforcement 
  6.1   service for public buildings and state licensed facilities in 
  6.2   the contractual jurisdiction if the building officials of the 
  6.3   municipality meet the requirements of section 16B.65 and wish to 
  6.4   provide those services and if the commissioner determines that 
  6.5   the municipality has enough adequately trained and qualified 
  6.6   building inspectors to provide those services for the 
  6.7   construction project. 
  6.8      The commissioner may direct the state building official to 
  6.9   assist a community that has been affected by a natural disaster 
  6.10  with building evaluation and other activities related to 
  6.11  building codes. 
  6.12     Administration and enforcement in a municipality under this 
  6.13  section must apply any optional provisions of the State Building 
  6.14  Code adopted by the municipality.  A municipality adopting any 
  6.15  optional code provision shall notify the state building official 
  6.16  within 30 days of its adoption. 
  6.17     The commissioner shall administer and enforce the 
  6.18  provisions of the code relating to elevators statewide, except 
  6.19  as provided for under section 16B.747, subdivision 3. 
  6.20     Sec. 6.  Minnesota Statutes 2002, section 16B.62, 
  6.21  subdivision 1, is amended to read: 
  6.22     Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The State Building 
  6.23  Code applies statewide and supersedes the building code of any 
  6.24  municipality.  A municipality must not by ordinance or through 
  6.25  development agreement require building code provisions 
  6.26  regulating components or systems of any residential structure 
  6.27  that are different from any provision of the State Building 
  6.28  Code.  A municipality may, with the approval of the state 
  6.29  building official, adopt an ordinance that is more restrictive 
  6.30  than the State Building Code where geological conditions warrant 
  6.31  a more restrictive ordinance.  A municipality may appeal the 
  6.32  disapproval of a more restrictive ordinance to the 
  6.33  commissioner.  An appeal under this subdivision is subject to 
  6.34  the schedule, fee, procedures, cost provisions, and appeal 
  6.35  rights set out in section 16B.67.  The State Building Code does 
  6.36  not apply to agricultural buildings except with respect to state 
  7.1   inspections required or rulemaking authorized by sections 
  7.2   103F.141, 216C.19, subdivision 8, and 326.244.  All 
  7.3   municipalities shall adopt and enforce the State Building Code 
  7.4   with respect to new construction within their respective 
  7.5   jurisdictions.  
  7.6      If a city has adopted or is enforcing the State Building 
  7.7   Code on June 3, 1977, or determines by ordinance after that date 
  7.8   to undertake enforcement, it shall enforce the code within the 
  7.9   city.  A city may by ordinance and with permission of the 
  7.10  township board extend the enforcement of the code to contiguous 
  7.11  unincorporated territory not more than two miles distant from 
  7.12  its corporate limits in any direction if the code is not in 
  7.13  effect in the territory.  Where two or more noncontiguous cities 
  7.14  which have elected to enforce the code have boundaries less than 
  7.15  four miles apart, each is authorized to enforce the code on its 
  7.16  side of a line equidistant between them.  Once enforcement 
  7.17  authority is extended extraterritorially by ordinance, the 
  7.18  authority may continue to be exercised in the designated 
  7.19  territory even though another city less than four miles distant 
  7.20  later elects to enforce the code.  After the extension, the city 
  7.21  may enforce the code in the designated area to the same extent 
  7.22  as if the property were situated within its corporate limits.  
  7.23     Enforcement of the code in an extended area outside a 
  7.24  city's corporate limits includes all rules, laws, and ordinances 
  7.25  associated with administration of the code. 
  7.26     A city which, on June 3, 1977, had not adopted the code may 
  7.27  not commence enforcement of the code within or outside of its 
  7.28  jurisdiction until it has provided written notice to the 
  7.29  commissioner, the county auditor, and the town clerk of each 
  7.30  town in which it intends to enforce the code.  A public hearing 
  7.31  on the proposed enforcement must be held not less than 30 days 
  7.32  after the notice has been provided.  Enforcement of the code by 
  7.33  the city outside of its jurisdiction commences on the first day 
  7.34  of January in the year following the notice and hearing.  
  7.35     Municipalities may provide for the issuance of permits, 
  7.36  inspection, and enforcement within their jurisdictions by means 
  8.1   which are convenient, and lawful, including by means of 
  8.2   contracts with other municipalities pursuant to section 471.59, 
  8.3   and with qualified individuals.  The other municipalities or 
  8.4   qualified individuals may be reimbursed by retention or 
  8.5   remission of some or all of the building permit fee collected or 
  8.6   by other means.  In areas of the state where inspection and 
  8.7   enforcement is unavailable from qualified employees of 
  8.8   municipalities, the commissioner shall train and designate 
  8.9   individuals available to carry out inspection and enforcement on 
  8.10  a fee basis.  Nothing in this section prohibits a municipality 
  8.11  from adopting ordinances relating to zoning, subdivision, or 
  8.12  planning unless the ordinance conflicts with a provision of the 
  8.13  State Building Code that regulates components or systems of any 
  8.14  residential structure. 
  8.15     Sec. 7.  Minnesota Statutes 2002, section 16C.08, 
  8.16  subdivision 4, is amended to read: 
  8.17     Subd. 4.  [REPORTS.] (a) The commissioner shall submit to 
  8.18  the governor, the chairs of the house ways and means and senate 
  8.19  finance committees, and the legislative reference library a 
  8.20  yearly listing of all contracts for professional or technical 
  8.21  services executed.  The report must identify the contractor, 
  8.22  contract amount, duration, and services to be provided.  The 
  8.23  commissioner shall also issue yearly reports summarizing the 
  8.24  contract review activities of the department by fiscal year. 
  8.25     (b) The fiscal year report must be submitted by September 1 
  8.26  of each year and must: 
  8.27     (1) be sorted by agency and by contractor; 
  8.28     (2) show the aggregate value of contracts issued by each 
  8.29  agency and issued to each contractor; 
  8.30     (3) distinguish between contracts that are being issued for 
  8.31  the first time and contracts that are being extended; 
  8.32     (4) state the termination date of each contract; and 
  8.33     (5) identify services by commodity code, including topics 
  8.34  such as contracts for training, contracts for research and 
  8.35  opinions, and contracts for computer systems; and 
  8.36     (6) identify which contracts were awarded without following 
  9.1   the solicitation process in this chapter because it was 
  9.2   determined that there was only a single source for the services. 
  9.3      (c) Within 30 days of final completion of a contract over 
  9.4   $40,000 covered by this subdivision, the head of the agency 
  9.5   entering into the contract must submit a one-page report to the 
  9.6   commissioner who must submit a copy to the legislative reference 
  9.7   library.  The report must:  
  9.8      (1) summarize the purpose of the contract, including why it 
  9.9   was necessary to enter into a contract; 
  9.10     (2) state the amount spent on the contract; and 
  9.11     (3) explain why this amount was a cost-effective way to 
  9.12  enable the agency to provide its services or products better or 
  9.13  more efficiently; and 
  9.14     (4) if the contract was awarded without following the 
  9.15  solicitation process in this chapter because it was determined 
  9.16  that there was only a single source for the services, explain 
  9.17  why the agency determined there was only a single source for the 
  9.18  services. 
  9.19     Sec. 8.  Minnesota Statutes 2002, section 16C.10, 
  9.20  subdivision 5, is amended to read: 
  9.21     Subd. 5.  [SPECIFIC PURCHASES.] The solicitation process 
  9.22  described in this chapter is not required for acquisition of the 
  9.23  following: 
  9.24     (1) merchandise for resale purchased under policies 
  9.25  determined by the commissioner; 
  9.26     (2) farm and garden products which, as determined by the 
  9.27  commissioner, may be purchased at the prevailing market price on 
  9.28  the date of sale; 
  9.29     (3) goods and services from the Minnesota correctional 
  9.30  facilities; 
  9.31     (4) goods and services from rehabilitation facilities and 
  9.32  sheltered workshops extended employment providers that are 
  9.33  certified by the commissioner of economic security; 
  9.34     (5) goods and services for use by a community-based 
  9.35  facility operated by the commissioner of human services; 
  9.36     (6) goods purchased at auction or when submitting a sealed 
 10.1   bid at auction provided that before authorizing such an action, 
 10.2   the commissioner consult with the requesting agency to determine 
 10.3   a fair and reasonable value for the goods considering factors 
 10.4   including, but not limited to, costs associated with submitting 
 10.5   a bid, travel, transportation, and storage.  This fair and 
 10.6   reasonable value must represent the limit of the state's bid; 
 10.7   and 
 10.8      (7) utility services where no competition exists or where 
 10.9   rates are fixed by law or ordinance. 
 10.10     Sec. 9.  Minnesota Statutes 2002, section 16C.15, is 
 10.11  amended to read: 
 10.12     16C.15 [SHELTERED WORKSHOPS AND SERVICES WORK ACTIVITY 
 10.13  PROGRAMS REHABILITATION FACILITIES AND EXTENDED EMPLOYMENT 
 10.14  PROVIDERS.] 
 10.15     The commissioner, in consultation with the commissioner of 
 10.16  economic security, shall prepare a list containing products and 
 10.17  services of state-certified certified rehabilitation facilities, 
 10.18  sheltered workshops, and work activity programs and extended 
 10.19  employment providers as described in chapter 268A for 
 10.20  acquisition by state agencies and institutions. 
 10.21     Sec. 10.  Minnesota Statutes 2002, section 16C.16, 
 10.22  subdivision 7, is amended to read: 
 10.23     Subd. 7.  [ECONOMICALLY DISADVANTAGED AREAS.] (a) Except as 
 10.24  otherwise provided in paragraph (b), the commissioner may award 
 10.25  up to a six percent preference in the amount bid on state 
 10.26  procurement to small businesses located in an economically 
 10.27  disadvantaged area.  
 10.28     (b) The commissioner may award up to a four percent 
 10.29  preference in the amount bid on state construction to small 
 10.30  businesses located in an economically disadvantaged area.  
 10.31     (c) A business is located in an economically disadvantaged 
 10.32  area if: 
 10.33     (1) the owner resides in or the business is located in a 
 10.34  county in which the median income for married couples is less 
 10.35  than 70 percent of the state median income for married couples; 
 10.36     (2) the owner resides in or the business is located in an 
 11.1   area designated a labor surplus area by the United States 
 11.2   Department of Labor; or 
 11.3      (3) the business is a certified rehabilitation facility or 
 11.4   work activity program extended employment provider as described 
 11.5   in chapter 268A. 
 11.6      (d) The commissioner may designate one or more areas 
 11.7   designated as targeted neighborhoods under section 469.202 or as 
 11.8   enterprise zones under section 469.167 as economically 
 11.9   disadvantaged areas for purposes of this subdivision if the 
 11.10  commissioner determines that this designation would further the 
 11.11  purposes of this section.  If the owner of a small business 
 11.12  resides or is employed in a designated area, the small business 
 11.13  is eligible for any preference provided under this subdivision. 
 11.14     (e) The department of revenue shall gather data necessary 
 11.15  to make the determinations required by paragraph (c), clause 
 11.16  (1), and shall annually certify counties that qualify under 
 11.17  paragraph (c), clause (1).  An area designated a labor surplus 
 11.18  area retains that status for 120 days after certified small 
 11.19  businesses in the area are notified of the termination of the 
 11.20  designation by the United States Department of Labor. 
 11.21     Sec. 11.  Minnesota Statutes 2002, section 327A.01, 
 11.22  subdivision 2, is amended to read: 
 11.23     Subd. 2.  [BUILDING STANDARDS.] "Building standards" means 
 11.24  the materials and installation standards of the State Building 
 11.25  Code, adopted by the commissioner of administration pursuant to 
 11.26  sections 16B.59 to 16B.75, that is in effect at the time of the 
 11.27  construction or remodeling. 
 11.28     Sec. 12.  [REPEALER.] 
 11.29     Minnesota Statutes 2002, sections 16A.151, subdivision 5; 
 11.30  and 16C.18, subdivision 1, are repealed.