1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for the general 
  1.4             legislative and administrative expenses of state 
  1.5             government; modifying provisions relating to state 
  1.6             government operations; modifying information 
  1.7             technology provisions; providing for community-based 
  1.8             planning; modifying provisions relating to the 
  1.9             municipal board; establishing dispute resolution 
  1.10            procedures; providing criminal penalties; amending 
  1.11            Minnesota Statutes 1996, sections 1.34, subdivision 2; 
  1.12            3.056; 3.099, subdivision 3; 3.225, subdivision 1; 
  1.13            3.85, subdivision 3; 10A.09, subdivision 6; 10A.20, 
  1.14            subdivision 2; 14.47, subdivision 8; 15.0597, 
  1.15            subdivisions 5 and 7; 15.0599, subdivision 4; 16A.10, 
  1.16            subdivision 2; 16A.103, subdivision 1; 16A.11, 
  1.17            subdivisions 1, 3b, and 3c; 16A.1285, subdivision 3; 
  1.18            16A.129, subdivision 3; 16A.15, subdivision 3; 
  1.19            16A.642, subdivision 1, and by adding a subdivision; 
  1.20            16B.05, subdivision 2; 16B.20, subdivision 2; 16B.24, 
  1.21            subdivision 5; 16B.35, by adding a subdivision; 
  1.22            16B.42, subdivision 1; 16B.465; 16B.467; 16B.70, 
  1.23            subdivision 2; 43A.17, subdivision 4; 43A.38, 
  1.24            subdivision 4; 115.49, by adding a subdivision; 
  1.25            116P.05, subdivision 1; 138.31, by adding a 
  1.26            subdivision; 138.35; 138.91, by adding a subdivision; 
  1.27            151.21, by adding a subdivision; 176.611, by adding a 
  1.28            subdivision; 327.33, subdivision 2; 327B.04, 
  1.29            subdivision 7; 349.163, subdivision 4; 356.865, 
  1.30            subdivision 3; 363.073, subdivision 1; 394.23; 394.24, 
  1.31            subdivision 1; 403.02, subdivision 2, and by adding a 
  1.32            subdivision; 403.08, by adding a subdivision; 403.11, 
  1.33            subdivision 2; 403.113, subdivisions 1, 2, 3, and 4; 
  1.34            403.13; 414.0325, subdivision 1; 414.033, subdivisions 
  1.35            2b, 11, and 12; 422A.101, subdivision 3; 462.352, 
  1.36            subdivisions 5, 6, and by adding a subdivision; 
  1.37            462.357, subdivision 2; 473.894, subdivision 3; and 
  1.38            475A.06, subdivision 7; proposing coding for new law 
  1.39            in Minnesota Statutes, chapters 4A; 16B; 43A; 62J; 
  1.40            197; 394; 403; 414; 462; 465; and 473; proposing 
  1.41            coding for new law as Minnesota Statutes, chapters 16E 
  1.42            and 572A; repealing Minnesota Statutes 1996, sections 
  1.43            10A.21; 15.95; 15.96; 16B.40; 16B.41; 16B.43; 16B.58, 
  1.44            subdivision 8; 138.35, subdivision 3; and 414.033, 
  1.45            subdivision 2a. 
  2.1   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.2                              ARTICLE 1 
  2.3                            APPROPRIATIONS 
  2.4   Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.5      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.6   appropriated from the general fund, or another fund named, to 
  2.7   the agencies and for the purposes specified in this act, to be 
  2.8   available for the fiscal years indicated for each purpose.  The 
  2.9   figures "1998" and "1999," where used in this act, mean that the 
  2.10  appropriation or appropriations listed under them are available 
  2.11  for the year ending June 30, 1998, or June 30, 1999, 
  2.12  respectively.  
  2.13                          SUMMARY BY FUND 
  2.14                                                       BIENNIAL
  2.15                            1998          1999           TOTAL
  2.16  General              $338,665,000   $309,544,000   $648,209,000
  2.17  State 
  2.18  Government 
  2.19  Special Revenue        11,866,000     13,311,000     25,177,000 
  2.20  Environmental             224,000        229,000        453,000
  2.21  Solid Waste Fund          445,000        450,000        895,000
  2.22  Lottery Prize 
  2.23  Fund                    1,300,000      1,150,000      2,450,000
  2.24  Highway User
  2.25  Tax Distribution        2,044,000      2,091,000      4,135,000
  2.26  Trunk Highway              37,000         37,000         74,000 
  2.27  Workers'
  2.28  Compensation            4,207,000      4,295,000      8,502,000 
  2.29  TOTAL                $358,788,000   $331,107,000   $689,895,000
  2.30                                             APPROPRIATIONS 
  2.31                                         Available for the Year 
  2.32                                             Ending June 30 
  2.33                                            1998         1999 
  2.34  Sec. 2.  LEGISLATURE 
  2.35  Subdivision 1.  Total  
  2.36  Appropriation                         55,248,000     56,301,000
  2.37                Summary by Fund
  2.38  General              55,211,000    56,264,000
  2.39  Trunk Highway            37,000        37,000
  2.40  The amounts that may be spent from this 
  2.41  appropriation for each program are 
  3.1   specified in the following subdivisions.
  3.2   Subd. 2.  Senate                      18,974,000     17,743,000
  3.3   Subd. 3.  House of Representatives    24,116,000     25,801,000
  3.4   Subd. 4.  Legislative 
  3.5   Coordinating Commission               12,158,000     12,757,000
  3.6                 Summary by Fund
  3.7   General              12,121,000    12,720,000
  3.8   Trunk Highway            37,000        37,000
  3.9   $4,754,000 the first year and 
  3.10  $5,362,000 the second year are for the 
  3.11  office of the revisor of statutes. 
  3.12  $1,030,000 the first year and 
  3.13  $1,052,000 the second year are for the 
  3.14  legislative reference library. 
  3.15  $4,615,000 the first year and 
  3.16  $4,622,000 the second year are for the 
  3.17  office of the legislative auditor. 
  3.18  $8,000 the first year and $8,000 the 
  3.19  second year are to provide additional 
  3.20  funding for the legislative 
  3.21  coordinating commission to contract for 
  3.22  sign language interpreter services for 
  3.23  meetings in Minnesota with legislators. 
  3.24  $18,000 the first year is for the 
  3.25  corporate subsidy reform commission 
  3.26  created by this act and is available 
  3.27  until June 30, 1999. 
  3.28  $65,000 the first year is for expenses 
  3.29  of the information policy task force 
  3.30  created by this act and is available 
  3.31  until June 30, 1999. 
  3.32  Sec. 3.  GOVERNOR AND 
  3.33  LIEUTENANT GOVERNOR                    3,816,000      3,884,000
  3.34  This appropriation is to fund the 
  3.35  offices of the governor and lieutenant 
  3.36  governor.  
  3.37  $19,000 the first year and $19,000 the 
  3.38  second year are for necessary expenses 
  3.39  in the normal performance of the 
  3.40  governor's and lieutenant governor's 
  3.41  duties for which no other reimbursement 
  3.42  is provided. 
  3.43  By September 1 of each year, the 
  3.44  commissioner of finance shall report to 
  3.45  the chairs of the senate governmental 
  3.46  operations budget division and the 
  3.47  house state government finance division 
  3.48  any personnel costs incurred by the 
  3.49  office of the governor and lieutenant 
  3.50  governor that were supported by 
  3.51  appropriations to other agencies during 
  3.52  the previous fiscal year.  The office 
  3.53  of the governor shall inform the chairs 
  3.54  of the divisions before initiating any 
  3.55  interagency agreements. 
  4.1   Sec. 4.  STATE AUDITOR                 7,718,000      7,916,000
  4.2   Sec. 5.  STATE TREASURER               2,070,000      2,134,000
  4.3   $1,000,000 the first year and 
  4.4   $1,000,000 the second year are for the 
  4.5   treasurer to pay for banking services 
  4.6   by fees rather than by compensating 
  4.7   balances.  
  4.8   Sec. 6.  ATTORNEY GENERAL             27,683,000     26,946,000
  4.9                 Summary by Fund
  4.10  General              25,261,000    24,441,000
  4.11  State Government
  4.12  Special Revenue       1,849,000     1,924,000
  4.13  Environmental           128,000       131,000 
  4.14  Solid Waste Fund        445,000       450,000 
  4.15  $25,000 the first year is for the 
  4.16  attorney general to continue a study of 
  4.17  gender equity in athletics, to be 
  4.18  available until June 30, 1999. 
  4.19  Sec. 7.  SECRETARY OF STATE            5,937,000      5,914,000
  4.20  $34,000 the first year and $26,000 the 
  4.21  second year are for administrative 
  4.22  expenses related to the uniform 
  4.23  partnership act, 1997 S.F. No. 298, if 
  4.24  enacted. 
  4.25  $50,000 the first year is for licensing 
  4.26  digital signature certification 
  4.27  authorities under 1997 S.F. No. 173, if 
  4.28  enacted. 
  4.29  Sec. 8.  BOARD OF PUBLIC DISCLOSURE      593,000        483,000
  4.30  The board shall not adopt any new 
  4.31  administrative rules governing the 
  4.32  provisions outlined in Minnesota Rules, 
  4.33  chapter 4503 until after February 1, 
  4.34  1999. 
  4.35  Sec. 9.  INVESTMENT BOARD              2,163,000      2,247,000
  4.36  Sec. 10.  ADMINISTRATIVE HEARINGS      4,107,000      4,195,000
  4.37  This appropriation is from the workers' 
  4.38  compensation special compensation fund 
  4.39  for considering workers' compensation 
  4.40  claims. 
  4.41  Sec. 11.  OFFICE OF STRATEGIC 
  4.42  AND LONG-RANGE PLANNING                4,973,000      5,317,000
  4.43  $175,000 the first year and $175,000 
  4.44  the second year are for statewide 
  4.45  grants to implement teen courts pilot 
  4.46  projects.  Up to five percent of the 
  4.47  appropriation may be used to administer 
  4.48  the program.  This appropriation shall 
  4.49  not be included in the agency's base 
  4.50  for future bienniums. 
  4.51  $165,000 the first year and $165,000 
  5.1   the second year are for community-based 
  5.2   planning and the advisory council on 
  5.3   community-based planning. 
  5.4   $375,000 the second year is for 
  5.5   planning grants to counties, joint 
  5.6   planning districts that include at 
  5.7   least one county, or to a county and 
  5.8   one or more municipalities within the 
  5.9   county, when they submit a joint 
  5.10  planning application to prepare 
  5.11  community-based plans.  A county 
  5.12  receiving a grant may provide funding 
  5.13  to municipalities within the county for 
  5.14  purposes of the grant.  The office 
  5.15  shall give priority for grants to joint 
  5.16  planning districts or joint 
  5.17  applications from a county and one or 
  5.18  more municipalities.  This 
  5.19  appropriation is available until June 
  5.20  30, 2000. 
  5.21  $375,000 the second year is for 
  5.22  technology grants to counties, or joint 
  5.23  planning districts that include at 
  5.24  least one county, that elect to prepare 
  5.25  community-based plans.  This 
  5.26  appropriation is available until June 
  5.27  30, 2000. 
  5.28  $350,000 the first year is to make a 
  5.29  grant to a joint powers board, if one 
  5.30  is established by the counties of 
  5.31  Benton, Sherburne, and Stearns, and the 
  5.32  cities of St. Cloud, Waite Park, 
  5.33  Sartell, St. Joseph, and Sauk Rapids, 
  5.34  for the purposes of joint planning 
  5.35  under this act.  Other cities and towns 
  5.36  within the counties may elect to 
  5.37  participate in the joint planning 
  5.38  district.  The director may make the 
  5.39  grant once the joint powers board has 
  5.40  been formed and a copy of the joint 
  5.41  powers agreement has been received by 
  5.42  the director.  Members of the joint 
  5.43  powers board may delegate their 
  5.44  authority to adopt official controls to 
  5.45  the joint powers board. 
  5.46  $150,000 the first year is to make 
  5.47  three grants to additional counties or 
  5.48  joint powers boards selected to 
  5.49  participate in the community-based 
  5.50  planning pilot project.  A county that 
  5.51  receives a grant from this 
  5.52  appropriation may provide funding to 
  5.53  municipalities within the county for 
  5.54  purposes relating to the grant. 
  5.55  Sec. 12.  ADMINISTRATION 
  5.56  Subdivision 1.  Total 
  5.57  Appropriation                         49,349,000     46,486,000
  5.58                Summary by Fund
  5.59  General              39,732,000    35,499,000
  5.60  State Government 
  5.61  Special Revenue       9,617,000    10,987,000
  6.1   The amounts that may be spent from this 
  6.2   appropriation for each program are 
  6.3   specified in the following subdivisions.
  6.4   Subd. 2.  Operations Management 
  6.5        4,107,000      3,563,000
  6.6   $183,000 the first year and $67,000 the 
  6.7   second year are for prescription drug 
  6.8   contracting activities.  
  6.9   During the biennium ending June 30, 
  6.10  1999, for any executive agency contract 
  6.11  that is subject to Minnesota Statutes, 
  6.12  section 363.073, the commissioner shall 
  6.13  ensure to the extent practical and to 
  6.14  the extent consistent with the business 
  6.15  needs of the state, before the agency 
  6.16  enters into the contract, that the 
  6.17  company to receive the contract 
  6.18  attempts to recruit Minnesota welfare 
  6.19  recipients to fill vacancies in entry 
  6.20  level positions, if the company has 
  6.21  entry level employees in Minnesota. 
  6.22  Up to $500,000 the first year is for 
  6.23  the commissioner to conduct a study to 
  6.24  determine if there is sufficient 
  6.25  justification under a strict scrutiny 
  6.26  standard to continue or establish a 
  6.27  narrowly tailored purchasing program 
  6.28  for the benefit of any socially 
  6.29  disadvantaged groups.  In conducting 
  6.30  this study, to the extent practical the 
  6.31  commissioner shall use data gathered 
  6.32  for similar studies in Hennepin and 
  6.33  Ramsey counties.  The commissioner may 
  6.34  also study and recommend alternatives 
  6.35  for race and gender neutral programs to 
  6.36  stimulate growth opportunities for 
  6.37  small businesses.  The study of these 
  6.38  alternatives may include, but is not 
  6.39  limited to, increasing outreach 
  6.40  efforts, evaluating contract purchasing 
  6.41  procedures, providing increased 
  6.42  information and feedback to small 
  6.43  businesses, eliminating or reducing 
  6.44  bonding and insurance requirements, and 
  6.45  mentoring and education.  The 
  6.46  commissioner shall report to the 
  6.47  governor and the legislature by March 
  6.48  16, 1998. 
  6.49  Subd. 3.  Facilities Management 
  6.50       11,734,000    11,202,000
  6.51  $2,250,000 the first year and 
  6.52  $2,250,000 the second year are for 
  6.53  repair and maintenance of state 
  6.54  facilities under the custodial control 
  6.55  of the commissioner of administration. 
  6.56  When the museum-quality portrait of 
  6.57  Rudy and Lola Perpich authorized by 
  6.58  this act is completed, the commissioner 
  6.59  shall substitute it for the portrait of 
  6.60  Governor Rudy Perpich that currently is 
  6.61  displayed on the ground floor of the 
  6.62  State Capitol. 
  7.1   $650,000 is for the commissioner of 
  7.2   administration to acquire the building 
  7.3   in Ely currently used by the department 
  7.4   of revenue.  The commissioner shall 
  7.5   cause the building to be appraised by a 
  7.6   qualified appraiser.  The commissioner 
  7.7   shall submit the report of the 
  7.8   appraisal to the chairs of the senate 
  7.9   committees on taxes and state 
  7.10  government finance and to the chairs of 
  7.11  the house committees on taxes and ways 
  7.12  and means for their review and 
  7.13  comments.  The commissioner may not 
  7.14  acquire the building until 30 days 
  7.15  after the report of the appraisal was 
  7.16  received by the chairs or until the 
  7.17  chairs have all submitted their 
  7.18  comments to the commissioner, whichever 
  7.19  occurs first. 
  7.20  $5,187,000 the first year and 
  7.21  $5,249,000 the second year are for 
  7.22  office space costs of the legislature 
  7.23  and veterans organizations, for 
  7.24  ceremonial space, and for statutorily 
  7.25  free space. 
  7.26  The commissioner of administration 
  7.27  shall examine the feasibility and 
  7.28  practicality of relocating the division 
  7.29  of emergency services to larger 
  7.30  quarters outside the capitol. 
  7.31  Subd. 4.  Fiscal Agent
  7.32       1,060,000         160,000 
  7.33  (a) Children's Museum 
  7.34         160,000         160,000
  7.35  This appropriation is for a grant to 
  7.36  the Minnesota Children's Museum. 
  7.37  (b) Voyageur Center 
  7.38  $250,000 the first year is for a grant 
  7.39  to the city of International Falls for 
  7.40  the predesign and design of an 
  7.41  interpretive library and conference 
  7.42  center.  The center shall provide 
  7.43  educational opportunities and enhance 
  7.44  tourism by presenting information and 
  7.45  displays that preserve and interpret 
  7.46  the history of the voyageurs and 
  7.47  animals involved with the voyageurs, 
  7.48  emphasizing the importance of the fur 
  7.49  trade to the history and development of 
  7.50  the region and the state.  The center 
  7.51  shall include conference facilities.  
  7.52  The center shall be located in the city 
  7.53  of International Falls.  The city may 
  7.54  enter into a lease or management 
  7.55  contract with a nonprofit entity for 
  7.56  operation of the center.  In developing 
  7.57  plans for the facility, the 
  7.58  commissioner must consult with the 
  7.59  small business development center 
  7.60  located at Rainy River Community 
  7.61  College. 
  8.1   (c) Hockey Hall of Fame 
  8.2   $200,000 the first year is for a grant 
  8.3   to the hockey hall of fame in Eveleth 
  8.4   for capital improvements and building 
  8.5   and grounds maintenance.  Any money not 
  8.6   spent the first year is available the 
  8.7   second year. 
  8.8   (d) American Bald Eagle Center
  8.9   $450,000 the first year is for a grant 
  8.10  to the city of Wabasha to acquire and 
  8.11  prepare a site for and to predesign and 
  8.12  design the American Bald Eagle Center, 
  8.13  to be available until June 30, 1999. 
  8.14  Subd. 5.  Administrative Management 
  8.15       2,633,000     2,659,000
  8.16  $2,000 the first year and $2,000 the 
  8.17  second year are for the state 
  8.18  employees' band. 
  8.19  $175,000 the first year and $175,000 
  8.20  the second year are for the STAR 
  8.21  program. 
  8.22  $187,000 the first year and $190,000 
  8.23  the second year are for the office of 
  8.24  the state archaeologist. 
  8.25  $30,000 the first year is for the 
  8.26  office of the state archaeologist to 
  8.27  identify Indian burial mounds 
  8.28  throughout the state and to provide 
  8.29  information about these burial mounds 
  8.30  to units of local government. 
  8.31  Subd. 6.  Management Analysis 
  8.32         584,000        658,000
  8.33  Subd. 7.  Technology Management
  8.34      24,401,000     24,028,000
  8.35                Summary by Fund
  8.36  General              14,784,000    13,041,000
  8.37  State Government 
  8.38  Special Revenue       9,617,000    10,987,000
  8.39  The appropriation from the special 
  8.40  revenue fund is for recurring costs of 
  8.41  911 emergency telephone service.  
  8.42  $724,000 the first year and $936,000 
  8.43  the second year are for the network 
  8.44  telecommunications initiative.  It is 
  8.45  intended that portions of this 
  8.46  appropriation be transferred to other 
  8.47  agencies to fund project costs.  The 
  8.48  commissioner is authorized to make the 
  8.49  transfers with the advance approval of 
  8.50  the commissioner of finance.  
  8.51  $12,500,000 the first year and 
  8.52  $10,500,000 the second year are for 
  9.1   modification of state business systems 
  9.2   to address year 2000 changes.  
  9.3   $8,000,000 the first year is placed in 
  9.4   a contingent account and is available 
  9.5   only upon approval of the governor, 
  9.6   after consultation with the legislative 
  9.7   advisory commission.  The commissioner 
  9.8   shall report to the legislature by 
  9.9   December 15, 1997, on progress of the 
  9.10  project.  This appropriation is not 
  9.11  available until the commissioner has 
  9.12  determined that all other money 
  9.13  allocated for replacement or 
  9.14  enhancement of existing technology for 
  9.15  year 2000 compliance will be expended.  
  9.16  Each request for additional funding 
  9.17  must include the following 
  9.18  information:  (1) a complete 
  9.19  description of the impact if the 
  9.20  information system is not upgraded for 
  9.21  year 2000 compliance; (2) a description 
  9.22  of other means of addressing the 
  9.23  problem if additional funding is not 
  9.24  provided; and (3) a description of 
  9.25  problems that may impact other systems 
  9.26  if the funding is not provided. 
  9.27  $280,000 the first year and $281,000 
  9.28  the second year are for the 
  9.29  intergovernmental information systems 
  9.30  advisory council. 
  9.31  Funds that were made available to 
  9.32  develop the local government financial 
  9.33  reporting system in Laws 1994, chapter 
  9.34  587, article 3, section 3, clause (5), 
  9.35  shall also be used to implement and 
  9.36  operate the system. 
  9.37  The intergovernmental information 
  9.38  systems advisory council shall create a 
  9.39  committee to provide direction for the 
  9.40  ongoing operation and maintenance of 
  9.41  the local government financial 
  9.42  reporting system similar to the 
  9.43  recommendation made in the initial 
  9.44  report to the legislative commission on 
  9.45  planning and fiscal policy.  Members 
  9.46  shall include one member each from the 
  9.47  legislature, office of the state 
  9.48  auditor, department of revenue, 
  9.49  department of finance, counties, 
  9.50  cities, townships, special districts, 
  9.51  and a member from the general financial 
  9.52  community. 
  9.53  Subd. 8.  Public Broadcasting 
  9.54       4,830,000      4,216,000
  9.55  $1,700,000 the first year and 
  9.56  $1,700,000 the second year are for 
  9.57  matching grants for public television.  
  9.58  $250,000 the first year and $250,000 
  9.59  the second year are a one-biennium 
  9.60  appropriation and must not be included 
  9.61  in the budget base for the next 
  9.62  biennium.  Public television grant 
  9.63  recipients shall give special emphasis 
  9.64  to children's programming.  In 
  9.65  addition, public television grant 
 10.1   recipients shall promote program and 
 10.2   outreach initiatives that will increase 
 10.3   literacy and attempt to reduce youth 
 10.4   violence in our communities.  
 10.5   $700,000 the first year and $700,000 
 10.6   the second year are for public 
 10.7   television equipment needs.  $100,000 
 10.8   the first year and $100,000 the second 
 10.9   year are a one-biennium appropriation 
 10.10  and must not be included in the budget 
 10.11  base for the next biennium.  Equipment 
 10.12  grant allocations shall be made after 
 10.13  considering the recommendations of the 
 10.14  Minnesota public television association.
 10.15  $750,000 the first year is for a 
 10.16  one-time grant to Twin Cities public 
 10.17  television to construct a digital 
 10.18  broadcast transmission facility and 
 10.19  develop high-definition digital 
 10.20  television capability.  Twin Cities 
 10.21  public television will work with the 
 10.22  University of Minnesota and other 
 10.23  higher education institutions to 
 10.24  explore and demonstrate educational 
 10.25  uses of the broadcast services funded 
 10.26  by this appropriation.  This 
 10.27  appropriation must be matched equally 
 10.28  from nonstate sources. 
 10.29  $305,000 the first year and $441,000 
 10.30  the second year are for grants for 
 10.31  public information television 
 10.32  transmission of legislative 
 10.33  activities.  At least one-half must go 
 10.34  for programming to be broadcast in 
 10.35  rural Minnesota. 
 10.36  $25,000 the first year and $25,000 the 
 10.37  second year are for grants to the Twin 
 10.38  Cities regional cable channel. 
 10.39  $400,000 the first year and $400,000 
 10.40  the second year are for community 
 10.41  service grants to public educational 
 10.42  radio stations, which must be allocated 
 10.43  after considering the recommendations 
 10.44  of the Association of Minnesota Public 
 10.45  Educational Radio Stations under 
 10.46  Minnesota Statutes, section 129D.14. 
 10.47  $80,000 the first year and $80,000 the 
 10.48  second year are a one-biennium 
 10.49  appropriation and must not be included 
 10.50  in the budget base for the next 
 10.51  biennium. 
 10.52  $925,000 the first year and $925,000 
 10.53  the second year are for equipment 
 10.54  grants to public radio stations.  
 10.55  $431,000 the first year and $431,000 
 10.56  the second year are a one-biennium 
 10.57  appropriation and must not be included 
 10.58  in the budget base for the next 
 10.59  biennium.  These grants must be 
 10.60  allocated after considering the 
 10.61  recommendations of the Association of 
 10.62  Minnesota Public Educational Radio 
 10.63  Stations and Minnesota Public Radio, 
 10.64  Inc. 
 11.1   If an appropriation for either year for 
 11.2   grants to public television or radio 
 11.3   stations is not sufficient, the 
 11.4   appropriation for the other year is 
 11.5   available for it. 
 11.6   $25,000 the first year and $25,000 the 
 11.7   second year are for a grant to the 
 11.8   association of Minnesota public 
 11.9   education radio stations for station 
 11.10  KMOJ.  This money may be used for 
 11.11  equipment.  This appropriation is 
 11.12  separate from and in addition to money 
 11.13  appropriated for stations affiliated 
 11.14  with Minnesota Public Radio and the 
 11.15  Association of Minnesota Public Radio 
 11.16  Stations. 
 11.17  Before receiving funding under this 
 11.18  section, each public radio or public 
 11.19  television station or network that is 
 11.20  to receive funding must agree to submit 
 11.21  a report to the commissioner.  The 
 11.22  report must list all sources of revenue 
 11.23  for the station or network and any 
 11.24  for-profit subsidiaries.  This must 
 11.25  include all federal, state, or local 
 11.26  funds received; private and corporate 
 11.27  gifts, grants, and other donations, 
 11.28  including conditions placed on the use 
 11.29  of these; investment earnings; and a 
 11.30  programming list.  This report must be 
 11.31  submitted annually beginning in 1998.  
 11.32  Each report must cover the previous 
 11.33  year.  This paragraph does not apply to 
 11.34  grants for public information 
 11.35  television transmission of legislative 
 11.36  activities. 
 11.37  Sec. 13.  OFFICE OF TECHNOLOGY         5,161,000      2,777,000 
 11.38  $2,326,000 the first year and 
 11.39  $2,377,000 the second year are for the 
 11.40  administrative operations of the office 
 11.41  of technology. 
 11.42  $935,000 the first year is for the 
 11.43  North Star online information service 
 11.44  under new Minnesota Statutes, section 
 11.45  16E.07.  Any unencumbered balance 
 11.46  remaining in the first year does not 
 11.47  cancel and is available for the second 
 11.48  year of the biennium. 
 11.49  $500,000 the first year is to develop 
 11.50  an electronic system to allow the 
 11.51  public to retrieve by computer business 
 11.52  license information prepared by the 
 11.53  commissioner of economic development, 
 11.54  as required by new Minnesota Statutes, 
 11.55  section 16E.08.  Any unencumbered 
 11.56  balance remaining in the first year 
 11.57  does not cancel and is available for 
 11.58  the second year of the biennium.  The 
 11.59  executive director shall report to the 
 11.60  legislature by January 15, 1998, on 
 11.61  progress of the project. 
 11.62  $400,000 the first year and $400,000 
 11.63  the second year are to develop a United 
 11.64  Nations trade point in the state under 
 12.1   new Minnesota Statutes, section 
 12.2   16E.11.  If the appropriation for 
 12.3   either year is insufficient, the 
 12.4   appropriation for the other year is 
 12.5   available for it. 
 12.6   $500,000 the first year is to support 
 12.7   activities associated with a 
 12.8   plenipotentiary conference of the 
 12.9   International Telecommunications Union. 
 12.10  $500,000 the first year is to operate 
 12.11  the Internet Center under new Minnesota 
 12.12  Statutes, section 16E.12, and to 
 12.13  develop community technology resources 
 12.14  under new Minnesota Statutes, section 
 12.15  16E.13.  Any unencumbered balance 
 12.16  remaining in the first year does not 
 12.17  cancel and is available for the second 
 12.18  year of the biennium. 
 12.19  Sec. 14.  CAPITOL AREA ARCHITECTURAL 
 12.20  AND PLANNING BOARD                       761,000        289,000
 12.21  $455,000 the first year is for two 
 12.22  governors' portraits, predesign of a 
 12.23  memorial to Coya Knutson, design and 
 12.24  construction of a memorial to Hubert H. 
 12.25  Humphrey, and completion of the 
 12.26  Minnesota women's suffrage memorial 
 12.27  garden and is available until 
 12.28  expended.  The portrait of Rudy and 
 12.29  Lola Perpich must be a museum-quality 
 12.30  oil painting based on the portrait of 
 12.31  Rudy and Lola Perpich currently on 
 12.32  display at the Minnesota Historical 
 12.33  Society. 
 12.34  The capitol area architectural and 
 12.35  planning board shall develop standards 
 12.36  for the content, construction, and 
 12.37  materials used for the official 
 12.38  portrait of a governor that is to be 
 12.39  hung in the state capitol.  The board 
 12.40  shall give particular attention to the 
 12.41  question of whether the governor's 
 12.42  spouse should be included in the 
 12.43  official portrait of a future governor 
 12.44  and the length of time the portrait 
 12.45  should be expected to last without 
 12.46  significant deterioration.  The board 
 12.47  shall report its recommendations to the 
 12.48  legislature by January 15, 1998. 
 12.49  Notwithstanding Laws 1993, chapter 192, 
 12.50  section 16, the appropriation in that 
 12.51  section for the Hubert H. Humphrey 
 12.52  memorial need not be matched. 
 12.53  The appropriation in Laws 1996, chapter 
 12.54  390, section 5, for revision of the 
 12.55  board's comprehensive plan and zoning 
 12.56  ordinance is available until June 30, 
 12.57  1998.  
 12.58  Sec. 15.  FINANCE 
 12.59  Subdivision 1.  Total 
 12.60  Appropriation                         22,520,000     22,751,000
 12.61  The amounts that may be spent from this 
 13.1   appropriation for each program are 
 13.2   specified in the following subdivisions.
 13.3   Subd. 2.  Accounting Services  
 13.4        4,696,000      4,795,000
 13.5   Subd. 3.  Accounts Receivable
 13.6   Operations
 13.7        1,476,000      1,513,000
 13.8   $595,000 the first year and $610,000 
 13.9   the second year are for transfer to the 
 13.10  department of revenue. 
 13.11  $266,000 the first year and $273,000 
 13.12  the second year are for transfer to the 
 13.13  department of human services. 
 13.14  $562,000 the first year and $576,000 
 13.15  the second year are for transfer to the 
 13.16  attorney general. 
 13.17  Subd. 4.  Budget Services 
 13.18       2,129,000      2,189,000
 13.19  The commissioner of finance shall 
 13.20  convene a joint executive-legislative 
 13.21  work group to evaluate the current 
 13.22  usefulness and benefits of agency 
 13.23  performance reports prepared in 
 13.24  accordance with the requirements of 
 13.25  Minnesota Statutes, sections 15.90 to 
 13.26  15.92.  The work group shall include 
 13.27  representatives of reporting agencies, 
 13.28  the office of the legislative auditor, 
 13.29  the legislative committees to which 
 13.30  agency performance reports are 
 13.31  presented, and other parties as deemed 
 13.32  appropriate by the commissioner.  By 
 13.33  November 3, 1997, the commissioner 
 13.34  shall report the progress of the work 
 13.35  group to the legislative commission on 
 13.36  planning and fiscal policy and other 
 13.37  committees as appropriate.  The report 
 13.38  of the commissioner shall contain 
 13.39  recommendations on proposed 
 13.40  administrative and legislative actions 
 13.41  to increase the relevance, overall 
 13.42  usefulness, and benefits of state 
 13.43  performance reporting efforts, and 
 13.44  increase the efficiency of the report 
 13.45  development process.  By February 2, 
 13.46  1998, the commissioner shall report to 
 13.47  the legislative commission on planning 
 13.48  and fiscal policy and other committees 
 13.49  as appropriate on performance measures 
 13.50  proposed for reporting on specific 
 13.51  agencies, and request the concurrence 
 13.52  of the legislature on the proposed 
 13.53  measures. 
 13.54  The term "annualization of new 
 13.55  programs" as used in the detailed 
 13.56  budget estimates shall be changed to 
 13.57  "new programs to agency base." 
 13.58  Subd. 5.  Economic Analysis  
 14.1          313,000        319,000
 14.2   Subd. 6.  Information Services 
 14.3       12,304,000     12,304,000
 14.4   Subd. 7.  Management Services 
 14.5        1,602,000      1,631,000
 14.6   Sec. 16.  EMPLOYEE RELATIONS 
 14.7   Subdivision 1.  Total 
 14.8   Appropriation                          8,505,000      7,228,000
 14.9   The amounts that may be spent from this 
 14.10  appropriation for each program are 
 14.11  specified in the following subdivisions.
 14.12  Subd. 2.  Human Resources
 14.13  Management
 14.14       7,051,000      7,124,000
 14.15  $325,000 the first year and $250,000 
 14.16  the second year are for continuation of 
 14.17  reforms to the state's human resource 
 14.18  management processes and policies, 
 14.19  including, but not limited to, 
 14.20  enhancing redeployment procedures, 
 14.21  application and testing services, 
 14.22  hiring, the position classification 
 14.23  system, and employee development 
 14.24  processes.  
 14.25  $50,000 the first year and $50,000 the 
 14.26  second year are for a grant to the 
 14.27  government training service. 
 14.28  $75,000 the first year and $75,000 the 
 14.29  second year are for the Minnesota 
 14.30  quality college under Minnesota 
 14.31  Statutes, section 43A.211. 
 14.32  $22,000 the first year and $22,000 the 
 14.33  second year are to fund a position to 
 14.34  administer the state's annual combined 
 14.35  charities program. 
 14.36  During the biennium ending June 30, 
 14.37  1999, the commissioner shall attempt to 
 14.38  recruit Minnesota welfare recipients to 
 14.39  fill at least ten percent of vacancies 
 14.40  in entry level state positions. 
 14.41  Subd. 3.  Employee Insurance
 14.42       1,454,000        104,000
 14.43  $104,000 the first year and $104,000 
 14.44  the second year are for the 
 14.45  right-to-know contracts administered 
 14.46  through the employee insurance division.
 14.47  $1,000,000 the first year is a one-time 
 14.48  appropriation to establish a state 
 14.49  workers' compensation settlement and 
 14.50  contingency reserve.  This 
 14.51  appropriation must be transferred to a 
 14.52  separate account within the 
 14.53  miscellaneous special revenue fund, 
 15.1   from which payments may be made and 
 15.2   premiums assessed to replenish the 
 15.3   reserve account under new Minnesota 
 15.4   Statutes, section 176.611, subdivision 
 15.5   2a. 
 15.6   During the biennium ending June 30, 
 15.7   1999, the amount necessary to pay 
 15.8   premiums for coverage by the worker's 
 15.9   compensation reinsurance association 
 15.10  under Minnesota Statutes, section 
 15.11  79.34, is appropriated from the general 
 15.12  fund to the commissioner. 
 15.13  Sec. 17.  REVENUE 
 15.14  Subdivision 1.  Total  
 15.15  Appropriation                         80,342,000     82,574,000
 15.16                Summary by Fund
 15.17  General              78,202,000    80,385,000
 15.18  Highway User 
 15.19  Tax Distribution      2,044,000     2,091,000
 15.20  Environmental            96,000        98,000
 15.21  The amounts that may be spent from this 
 15.22  appropriation for each program are 
 15.23  specified in the following subdivisions.
 15.24  Subd. 2.  Income Tax 
 15.25      14,297,000     14,549,000
 15.26  Subd. 3.  Business Excise and Consumption
 15.27      13,657,000     13,972,000
 15.28                Summary by Fund
 15.29  General              11,517,000    11,783,000
 15.30  Highway User 
 15.31  Tax Distribution      2,044,000     2,091,000
 15.32  Environmental            96,000        98,000
 15.33  $150,000 each year from the highway use 
 15.34  tax distribution fund is for funding of 
 15.35  the dyed fuel program.  This 
 15.36  appropriation is reduced by the amount 
 15.37  of any federal grants available for use 
 15.38  during the biennium for dyed fuel 
 15.39  enforcement purposes. 
 15.40  Subd. 4.  Property Tax and State Aids 
 15.41       2,869,000      3,026,000
 15.42  Subd. 5.  Tax Operations 
 15.43      27,679,000     28,207,000
 15.44  Subd. 6.  Legal and Research 
 15.45       3,830,000      3,832,000
 15.46  $80,000 the first year is to complete 
 15.47  the Minnesota/Wisconsin tax reciprocity 
 16.1   study. 
 16.2   Subd. 7.  Administrative Support 
 16.3       15,887,000     16,827,000
 16.4   Subd. 8.  Accounts Receivable 
 16.5        2,123,000      2,161,000
 16.6   During the biennium ending June 30, 
 16.7   1999, when a debt owed to any entity of 
 16.8   state government for which the 
 16.9   Minnesota collection enterprise has 
 16.10  jurisdiction becomes 121 days past due, 
 16.11  the state entity must refer the account 
 16.12  to the commissioner of revenue for 
 16.13  assignment to the Minnesota collection 
 16.14  enterprise.  This requirement does not 
 16.15  apply if there is a dispute over the 
 16.16  amount or validity of the debt, if the 
 16.17  debt is the subject of legal action or 
 16.18  administrative proceedings, or the 
 16.19  agency determines that the debtor is 
 16.20  adhering to acceptable payment 
 16.21  arrangements.  The commissioner of 
 16.22  revenue, in consultation with the 
 16.23  commissioner of finance, may provide 
 16.24  that certain types of debt need not be 
 16.25  referred to the commissioner for 
 16.26  assignment to the collection enterprise 
 16.27  under this paragraph.  Methods and 
 16.28  procedures for referral shall follow 
 16.29  internal guidelines prepared by the 
 16.30  commissioner of finance.  
 16.31  Sec. 18.  MILITARY AFFAIRS  
 16.32  Subdivision 1.  Total 
 16.33  Appropriation                         10,416,000    10,527,000
 16.34  The amounts that may be spent from this 
 16.35  appropriation for each program are 
 16.36  specified in the following subdivisions.
 16.37  Subd. 2.  Maintenance of Training 
 16.38  Facilities 
 16.39        6,056,000     6,129,000
 16.40  Subd. 3.  General Support
 16.41        2,008,000     2,045,000
 16.42  $75,000 the first year and $75,000 the 
 16.43  second year are for expenses of 
 16.44  military forces ordered to active duty 
 16.45  under Minnesota Statutes, chapter 192.  
 16.46  If the appropriation for either year is 
 16.47  insufficient, the appropriation for the 
 16.48  other year is available for it.  
 16.49  $400,000 the first year and $400,000 
 16.50  the second year are for a pilot project 
 16.51  to make armories available for 
 16.52  recreational activities for youth.  
 16.53  This amount shall not be included in 
 16.54  the agency's base for future 
 16.55  bienniums.  Scheduling of these 
 16.56  activities is subject to approval of 
 16.57  the adjutant general.  The project must 
 17.1   include, but is not limited to, 
 17.2   armories in Minneapolis and St. Paul.  
 17.3   The adjutant general shall report to 
 17.4   the chair of the state government 
 17.5   finance division in the house and the 
 17.6   chair of the governmental operations 
 17.7   budget division in the senate on the 
 17.8   results of the pilot project, including 
 17.9   the number of youth served, programs 
 17.10  provided, benefits of the programs to 
 17.11  communities served, and cost of 
 17.12  administering the project. 
 17.13  Subd. 4.  Enlistment Incentives
 17.14       2,352,000      2,353,000 
 17.15  Obligations for the reenlistment bonus 
 17.16  program, suspended on December 31, 
 17.17  1991, shall be paid from the amounts 
 17.18  available within the enlistment 
 17.19  incentives program. 
 17.20  If appropriations for either year of 
 17.21  the biennium are insufficient, the 
 17.22  appropriation from the other year is 
 17.23  available.  The appropriations for 
 17.24  enlistment incentives are available 
 17.25  until expended. 
 17.26  Sec. 19.  VETERANS AFFAIRS            21,594,000      4,324,000
 17.27  $231,000 the first year and $232,000 
 17.28  the second year are for grants to 
 17.29  county veterans offices for training of 
 17.30  county veterans service officers. 
 17.31  $1,544,000 the first year and 
 17.32  $1,544,000 the second year are for 
 17.33  emergency financial and medical needs 
 17.34  of veterans.  If the appropriation for 
 17.35  either year is insufficient, the 
 17.36  appropriation for the other year is 
 17.37  available for it.  
 17.38  With the approval of the commissioner 
 17.39  of finance, the commissioner of 
 17.40  veterans affairs may transfer the 
 17.41  unencumbered balance from the veterans 
 17.42  relief program to other department 
 17.43  programs during the fiscal year.  
 17.44  Before the transfer, the commissioner 
 17.45  of veterans affairs shall explain why 
 17.46  the unencumbered balance exists.  The 
 17.47  amounts transferred must be identified 
 17.48  to the chairs of the senate 
 17.49  governmental operations budget 
 17.50  committee and the house governmental 
 17.51  operations committee division on state 
 17.52  government finance. 
 17.53  $250,000 the first year and $250,000 
 17.54  the second year are for a grant to the 
 17.55  Vinland National Center. 
 17.56  $110,000 is for a matching grant for a 
 17.57  memorial to be constructed in the city 
 17.58  of Park Rapids to honor veterans from 
 17.59  all wars involving armed forces of the 
 17.60  United States.  In-kind donations may 
 17.61  be used for the nonstate match.  The 
 18.1   appropriation does not expire and is 
 18.2   available until expended.  $10,000 of 
 18.3   this amount is for administrative costs.
 18.4   $110,000 the first year is to make a 
 18.5   grant to the Red Tail Project of the 
 18.6   Southern Minnesota Wing of the 
 18.7   Confederate Air Force and Tuskeegee 
 18.8   Airmen, Inc., to restore a P-51C 
 18.9   Mustang World War II fighter plane to 
 18.10  honor the airmen known as the 
 18.11  "Tuskeegee Airmen."  The appropriation 
 18.12  must be matched by nonstate 
 18.13  contributions to the project.  $10,000 
 18.14  of this amount is for administrative 
 18.15  costs. 
 18.16  $17,090,000 the first year is to make 
 18.17  bonus payments authorized under 
 18.18  Minnesota Statutes, section 197.79.  
 18.19  The appropriation may not be used for 
 18.20  administrative purposes.  The 
 18.21  appropriation does not expire until the 
 18.22  commissioner acts on all applications 
 18.23  submitted under Minnesota Statutes, 
 18.24  section 197.79. 
 18.25  $250,000 the first year and $250,000 
 18.26  the second year are to administer the 
 18.27  bonus program established under 
 18.28  Minnesota Statutes, section 197.79.  
 18.29  The appropriation does not expire until 
 18.30  the commissioner acts on all the 
 18.31  applications submitted under Minnesota 
 18.32  Statutes, section 197.79. 
 18.33  Sec. 20.  VETERANS OF FOREIGN 
 18.34  WARS                                      41,000         41,000
 18.35  For carrying out the provisions of Laws 
 18.36  1945, chapter 455. 
 18.37  Sec. 21.  MILITARY ORDER OF 
 18.38  THE PURPLE HEART                          20,000         20,000
 18.39  Sec. 22.  DISABLED AMERICAN VETERANS      13,000         13,000
 18.40  For carrying out the provisions of Laws 
 18.41  1941, chapter 425. 
 18.42  Sec. 23.  GAMBLING  CONTROL            2,277,000      2,177,000
 18.43  The commissioner of revenue must 
 18.44  continue to provide technical support 
 18.45  to the lawful gambling control board 
 18.46  for the collection of gambling taxes 
 18.47  without charge during the biennium 
 18.48  ending June 30, 1999. 
 18.49  Sec. 24.  RACING COMMISSION              371,000        379,000
 18.50  Sec. 25.  STATE LOTTERY                1,300,000      1,150,000
 18.51  This appropriation is from the state 
 18.52  lottery prize fund to the commissioner 
 18.53  of human services for outpatient and 
 18.54  inpatient compulsive gambling treatment 
 18.55  programs, compulsive gambling hotline 
 18.56  services, felony screening, compulsive 
 18.57  gambling youth education, and any other 
 18.58  compulsive gambling treatment programs 
 19.1   under Minnesota Statutes, section 
 19.2   245.98.  
 19.3   $150,000 the first year is for the 
 19.4   inpatient treatment program at Project 
 19.5   Turnabout in Granite Falls.  
 19.6   Fifty percent of any money received by 
 19.7   the Gamblers' Intervention Center of 
 19.8   Duluth under any appropriation enacted 
 19.9   during the 1997 regular legislative 
 19.10  session must go to the Arrowhead 
 19.11  Center, Inc. in Virginia. 
 19.12  The total amount of money spent from 
 19.13  all appropriations enacted during the 
 19.14  1997 regular legislative session for 
 19.15  hotline services, felony screening, and 
 19.16  compulsive gambling youth education 
 19.17  must not exceed the total amount spent 
 19.18  for these purposes during the biennium 
 19.19  ending June 30, 1997. 
 19.20  The director of the state lottery shall 
 19.21  reimburse the general fund $150,000 the 
 19.22  first year and $150,000 the second year 
 19.23  for lottery-related costs incurred by 
 19.24  the department of public safety. 
 19.25  Sec. 26.  AMATEUR SPORTS 
 19.26  COMMISSION                             6,145,000        999,000
 19.27  $5,000,000 the first year is for grants 
 19.28  for ice centers under Minnesota 
 19.29  Statutes, section 240A.09, of up to 
 19.30  $250,000 each.  Up to $1,000,000 of 
 19.31  this amount may be used for renovation 
 19.32  grants for existing ice arenas of up to 
 19.33  $100,000 each.  Any unencumbered 
 19.34  balance remaining in the first year 
 19.35  does not cancel and is available for 
 19.36  the second year of the biennium. 
 19.37  The amateur sports commission shall 
 19.38  report to the legislature by January 
 19.39  15, 1998, on progress toward the 
 19.40  construction and renovation of ice 
 19.41  arenas, their success, financing, and 
 19.42  operation, and any need for additional 
 19.43  state-assisted efforts. 
 19.44  $400,000 the first year and $400,000 
 19.45  the second year are for pilot projects 
 19.46  for youth sports as provided in this 
 19.47  act.  This amount must not be included 
 19.48  in the agency's base for future 
 19.49  bienniums.  The executive director 
 19.50  shall report by January 15, 1999, to 
 19.51  the chairs of the state government 
 19.52  finance division in the house and the 
 19.53  governmental operations budget division 
 19.54  in the senate on the results of the 
 19.55  pilot project, including the number of 
 19.56  youth served, programs provided, 
 19.57  benefits of the programs to communities 
 19.58  served, and the cost of administering 
 19.59  the project. 
 19.60  $50,000 the first year is for a grant 
 19.61  to the United States Olympic 
 19.62  Committee's Minnesota Olympic 
 20.1   development program to fund the 
 20.2   development of winter sports programs 
 20.3   for females from ages 13 to 18.  The 
 20.4   money is available only upon 
 20.5   demonstration of a dollar for dollar 
 20.6   match from nonstate sources. 
 20.7   $75,000 the first year is to study the 
 20.8   feasibility of constructing an indoor 
 20.9   amateur tennis facility in the city of 
 20.10  St. Paul. 
 20.11  Sec. 27.  BOARD OF THE ARTS        
 20.12  Subdivision 1.  Total Appropriation   13,018,000     13,036,000
 20.13  Any unencumbered balance remaining in 
 20.14  this section the first year does not 
 20.15  cancel but is available for the second 
 20.16  year of the biennium. 
 20.17  Subd. 2.  Operations and Services        988,000        961,000
 20.18  Subd. 3.  Grants Program               8,518,000      8,540,000
 20.19  The board shall spend this 
 20.20  appropriation to ensure that at least 
 20.21  ten percent of the expenditure is for 
 20.22  arts programs intended primarily for 
 20.23  children. 
 20.24  $50,000 the first year and $50,000 the 
 20.25  second year are for grants to 
 20.26  individual artists of color to create 
 20.27  new works in collaboration with 
 20.28  nonprofit arts and community 
 20.29  organizations.  Special emphasis must 
 20.30  be made to reach artists of color who 
 20.31  are recent immigrants. 
 20.32  Subd. 4.  Regional Arts
 20.33  Councils                               3,512,000      3,535,000
 20.34  The board shall distribute this 
 20.35  appropriation to the regional arts 
 20.36  councils to ensure that ten percent of 
 20.37  the total distribution in each region 
 20.38  is for arts programs intended primarily 
 20.39  for children. 
 20.40  Sec. 28.  MINNESOTA HUMANITIES 
 20.41  COMMISSION                               886,000        886,000
 20.42  Any unencumbered balance remaining in 
 20.43  the first year does not cancel but is 
 20.44  available for the second year of the 
 20.45  biennium. 
 20.46  Sec. 29.  GENERAL CONTINGENT 
 20.47  ACCOUNTS                                 600,000        600,000
 20.48                Summary by Fund
 20.49  General                 100,000       100,000
 20.50  State Government 
 20.51  Special Revenue         400,000       400,000
 20.52  Workers' Compensation   100,000       100,000
 20.53  The appropriations in this section must 
 21.1   be spent with the approval of the 
 21.2   governor after consultation with the 
 21.3   legislative advisory commission under 
 21.4   Minnesota Statutes, section 3.30. 
 21.5   If an appropriation in this section for 
 21.6   either year is insufficient, the 
 21.7   appropriation for the other year is 
 21.8   available for it. 
 21.9   The special revenue appropriation is 
 21.10  available to be transferred to the 
 21.11  attorney general when the costs to 
 21.12  provide legal services to the health 
 21.13  boards exceed the biennial 
 21.14  appropriation to the attorney general 
 21.15  from the special revenue fund and for 
 21.16  transfer to the health boards if 
 21.17  required for unforeseen expenditures of 
 21.18  an emergency nature.  The boards 
 21.19  receiving the additional services or 
 21.20  supplemental appropriations shall set 
 21.21  their fees to cover the costs. 
 21.22  Sec. 30.  TORT CLAIMS                    275,000        275,000
 21.23  To be spent by the commissioner of 
 21.24  finance.  
 21.25  If the appropriation for either year is 
 21.26  insufficient, the appropriation for the 
 21.27  other year is available for it.  
 21.28  Sec. 31.  MINNESOTA STATE   
 21.29  RETIREMENT SYSTEM                      2,266,000      2,379,000
 21.30  The amounts estimated to be needed for 
 21.31  each program are as follows: 
 21.32  (a) Legislators 
 21.33       2,093,000      2,197,000
 21.34  Under Minnesota Statutes, sections 
 21.35  3A.03, subdivision 2; 3A.04, 
 21.36  subdivisions 3 and 4; and 3A.11. 
 21.37  (b) Constitutional Officers 
 21.38         173,000        182,000
 21.39  Under Minnesota Statutes, sections 
 21.40  352C.031, subdivision 5; 352C.04, 
 21.41  subdivision 3; and 352C.09, subdivision 
 21.42  2. 
 21.43  If an appropriation in this section for 
 21.44  either year is insufficient, the 
 21.45  appropriation for the other year is 
 21.46  available for it. 
 21.47  Sec. 32.  MINNEAPOLIS EMPLOYEES 
 21.48  RETIREMENT FUND                       11,005,000      9,550,000
 21.49  $10,455,000 the first year and 
 21.50  $9,000,000 the second year are to the 
 21.51  commissioner of finance for payment to 
 21.52  the Minneapolis employees retirement 
 21.53  fund under Minnesota Statutes, section 
 21.54  422A.101, subdivision 3.  Payment must 
 21.55  be made in four equal installments, 
 22.1   March 15, July 15, September 15, and 
 22.2   November 15, each year.  
 22.3   $550,000 the first year and $550,000 
 22.4   the second year are to the commissioner 
 22.5   of finance for payment to the 
 22.6   Minneapolis employees retirement fund 
 22.7   for the supplemental benefit for 
 22.8   pre-1973 retirees under Minnesota 
 22.9   Statutes, section 356.865. 
 22.10  Sec. 33.  POLICE AND FIRE   
 22.11  AMORTIZATION AID                       6,303,000      6,300,000
 22.12  $4,925,000 the first year and 
 22.13  $4,925,000 the second year are to the 
 22.14  commissioner of revenue for state aid 
 22.15  to amortize the unfunded liability of 
 22.16  local police and salaried firefighters' 
 22.17  relief associations, under Minnesota 
 22.18  Statutes, section 423A.02. 
 22.19  $1,000,000 the first year and 
 22.20  $1,000,000 the second year are to the 
 22.21  commissioner of revenue for 
 22.22  supplemental state aid to amortize the 
 22.23  unfunded liability of local police and 
 22.24  salaried firefighters' relief 
 22.25  associations under Minnesota Statutes, 
 22.26  section 423A.02, subdivision 1a. 
 22.27  $378,000 the first year and $375,000 
 22.28  the second year are to the commissioner 
 22.29  of revenue to pay reimbursements to 
 22.30  relief associations for firefighter 
 22.31  supplemental benefits paid under 
 22.32  Minnesota Statutes, section 424A.10. 
 22.33  Sec. 34.  BOARD OF GOVERNMENT   
 22.34  INNOVATION AND COOPERATION                1,312,000    1,009,000
 22.35  $306,000 the first year is to fund a 
 22.36  portion of the cooperation and 
 22.37  combination aid awards that were 
 22.38  approved by the board in fiscal years 
 22.39  1996 and 1997. 
 22.40  Sec. 35.  BOND SALE SCHEDULE 
 22.41  The commissioner of finance shall 
 22.42  schedule the sale of state general 
 22.43  obligation bonds so that, during the 
 22.44  biennium ending June 30, 1999, no more 
 22.45  than $545,457,000 will need to be 
 22.46  transferred from the general fund to 
 22.47  the state bond fund to pay principal 
 22.48  and interest due and to become due on 
 22.49  outstanding state general obligation 
 22.50  bonds.  During the biennium, before 
 22.51  each sale of state general obligation 
 22.52  bonds, the commissioner of finance 
 22.53  shall calculate the amount of debt 
 22.54  service payments needed on bonds 
 22.55  previously issued and shall estimate 
 22.56  the amount of debt service payments 
 22.57  that will be needed on the bonds 
 22.58  scheduled to be sold, the commissioner 
 22.59  shall adjust the amount of bonds 
 22.60  scheduled to be sold so as to remain 
 22.61  within the limit set by this section.  
 22.62  The amount needed to make the debt 
 23.1   service payments is appropriated from 
 23.2   the general fund as provided in 
 23.3   Minnesota Statutes, section 16A.641. 
 23.4      Sec. 36.  [STATEWIDE SYSTEMS ACCOUNT.] 
 23.5      Subdivision 1.  [CONTINUATION.] The statewide systems 
 23.6   account is a separate account in the general fund.  All money 
 23.7   resulting from billings for statewide systems services must be 
 23.8   deposited in the account.  For the purposes of this section, 
 23.9   statewide systems includes the state accounting system, payroll 
 23.10  system, human resources system, procurement system, and related 
 23.11  information access systems. 
 23.12     Subd. 2.  [BILLING PROCEDURES.] The commissioner of finance 
 23.13  may bill up to $3,111,000 in fiscal year 1998 and $3,659,000 in 
 23.14  fiscal year 1999 for statewide systems services provided to 
 23.15  state agencies, judicial branch agencies, the University of 
 23.16  Minnesota, the Minnesota state colleges and universities, and 
 23.17  other entities.  Billing must be based only on usage of services 
 23.18  relating to statewide systems provided by the intertechnologies 
 23.19  division.  Each agency shall transfer from agency operating 
 23.20  appropriations to the statewide systems account the amount 
 23.21  billed by the commissioner.  Billing policies and procedures 
 23.22  related to statewide systems services must be developed by the 
 23.23  commissioner of finance in consultation with the commissioners 
 23.24  of employee relations and administration, the University of 
 23.25  Minnesota, and the Minnesota state colleges and universities. 
 23.26     Subd. 3.  [APPROPRIATION.] Money transferred into the 
 23.27  account is appropriated to the commissioner of finance to pay 
 23.28  for statewide systems services during fiscal years 1998 and 1999.
 23.29                             ARTICLE 2 
 23.30                    STATE GOVERNMENT OPERATIONS 
 23.31     Section 1.  Minnesota Statutes 1996, section 1.34, 
 23.32  subdivision 2, is amended to read: 
 23.33     Subd. 2.  [OFFICERS.] The members of the legislative 
 23.34  advisory committee shall select a chair and other officers as 
 23.35  deemed necessary.  The chair of the commission shall rotate 
 23.36  every two years between the house and the senate. 
 23.37     Sec. 2.  Minnesota Statutes 1996, section 3.056, is amended 
 24.1   to read: 
 24.2      3.056 [DESIGNATION OF SUCCESSOR COMMITTEE.] 
 24.3      If a law assigns a power or duty to a named legislative 
 24.4   committee or its chair, and the committee has been renamed or no 
 24.5   longer exists, the speaker of the house of representatives or 
 24.6   the senate committee on rules and administration shall designate 
 24.7   the successor committee or chair for the law as provided in this 
 24.8   section.  If the committee has been renamed but retains 
 24.9   jurisdiction of the subject of the power or duty, the speaker or 
 24.10  senate committee shall designate the renamed committee as 
 24.11  successor.  If the committee has been renamed and jurisdiction 
 24.12  of the subject of the power or duty has been transferred to 
 24.13  another committee, the speaker or senate committee shall 
 24.14  designate the committee with current jurisdiction as the 
 24.15  successor.  If the named committee no longer exists, the speaker 
 24.16  or senate committee shall designate as successor the committee 
 24.17  with the jurisdiction that most closely corresponds with the 
 24.18  former jurisdiction of the named committee.  The house of 
 24.19  representatives and the senate shall maintain a list on the 
 24.20  World Wide Web of renamed or successor committees to committees 
 24.21  that are referenced in law. 
 24.22     Sec. 3.  Minnesota Statutes 1996, section 3.099, 
 24.23  subdivision 3, is amended to read: 
 24.24     Subd. 3.  [LEADERS.] The senate committee on rules and 
 24.25  administration for the senate and the house committee on rules 
 24.26  and legislative administration for the house may each designate 
 24.27  for their respective body up to three five leadership positions 
 24.28  to receive up to 140 percent of the compensation of other 
 24.29  members. 
 24.30     At the commencement of each biennial legislative session, 
 24.31  each house of the legislature shall adopt a resolution 
 24.32  designating its majority and minority leader. 
 24.33     The majority leader is the person elected by the caucus of 
 24.34  members in each house which is its largest political 
 24.35  affiliation.  The minority leader is the person elected by the 
 24.36  caucus which is its second largest political affiliation. 
 25.1      Sec. 4.  Minnesota Statutes 1996, section 3.225, 
 25.2   subdivision 1, is amended to read: 
 25.3      Subdivision 1.  [APPLICATION.] This section applies to a 
 25.4   contract for professional or technical services entered into by 
 25.5   the house of representatives, the senate, the legislative 
 25.6   coordinating commission, or any group under the jurisdiction of 
 25.7   the legislative coordinating commission.  For purposes of this 
 25.8   section, "professional or technical services" contract has the 
 25.9   meaning defined in section 16B.17 but does not include legal 
 25.10  services for official legislative business. 
 25.11     Sec. 5.  Minnesota Statutes 1996, section 3.85, subdivision 
 25.12  3, is amended to read: 
 25.13     Subd. 3.  [MEMBERSHIP.] The commission consists of five six 
 25.14  members of the senate appointed by the subcommittee on 
 25.15  committees of the committee on rules and administration and five 
 25.16  six members of the house of representatives appointed by the 
 25.17  speaker.  Members shall be appointed at the commencement of each 
 25.18  regular session of the legislature for a two-year term beginning 
 25.19  January 16 of the first year of the regular session.  Vacancies 
 25.20  that occur while the legislature is in session shall be filled 
 25.21  like regular appointments.  If the legislature is not in 
 25.22  session, senate vacancies shall be filled by the last 
 25.23  subcommittee on committees of the senate committee on rules and 
 25.24  administration or other appointing authority designated by the 
 25.25  senate rules, and house vacancies shall be filled by the last 
 25.26  speaker of the house, or if the speaker is not available, by the 
 25.27  last chair of the house rules committee. 
 25.28     Sec. 6.  Minnesota Statutes 1996, section 10A.09, 
 25.29  subdivision 6, is amended to read: 
 25.30     Subd. 6.  Each individual who is required to file a 
 25.31  statement of economic interest shall file a supplementary 
 25.32  statement on April 15 of each year that the individual remains 
 25.33  in office if information on the most recently filed statement 
 25.34  has changed.  The statement shall include a space for each 
 25.35  category of information in which the individual may indicate 
 25.36  that no change in information has occurred since the previous 
 26.1   statement.  The supplementary statement, if required, shall 
 26.2   include the amount of each honorarium in excess of $50 received 
 26.3   since the previous statement, together with the name and address 
 26.4   of the source of the honorarium.  A statement of economic 
 26.5   interest submitted by an officeholder shall be filed with the 
 26.6   statement submitted as a candidate. 
 26.7      Sec. 7.  Minnesota Statutes 1996, section 10A.20, 
 26.8   subdivision 2, is amended to read: 
 26.9      Subd. 2.  The reports shall be filed with the board on or 
 26.10  before January 31 of each year and additional reports shall be 
 26.11  filed as required and in accordance with clauses (a) and (b).  
 26.12     (a) In each year in which the name of the candidate is on 
 26.13  the ballot, the report of the principal campaign committee shall 
 26.14  be filed ten 15 days before a primary and ten days before a 
 26.15  general election, seven days before a special primary and a 
 26.16  special election, and ten days after a special election cycle.  
 26.17  The report due after a special election may be filed on January 
 26.18  31 following the special election if the special election is 
 26.19  held not more than 60 days before that date.  
 26.20     (b) In each general election year political committees and 
 26.21  political funds other than principal campaign committees shall 
 26.22  file reports ten days before a primary and general election.  
 26.23     If a scheduled filing date falls on a Saturday, Sunday or 
 26.24  legal holiday, the filing date shall be the next regular 
 26.25  business day. 
 26.26     Sec. 8.  Minnesota Statutes 1996, section 14.47, 
 26.27  subdivision 8, is amended to read: 
 26.28     Subd. 8.  [SALES AND DISTRIBUTION OF COMPILATION.] Any 
 26.29  compilation, reissue, or supplement published by the revisor 
 26.30  shall be sold by the revisor for a reasonable fee and its 
 26.31  proceeds deposited in the general fund.  An agency shall 
 26.32  purchase from the revisor the number of copies of the 
 26.33  compilation or supplement needed by the agency.  The revisor 
 26.34  shall provide without charge copies of each edition of any 
 26.35  compilation, reissue, or supplement to the persons or bodies 
 26.36  listed in this subdivision.  Those copies must be marked with 
 27.1   the words "State Copy" and kept for the use of the office.  The 
 27.2   revisor shall distribute:  
 27.3      (a) 25 copies to the office of the attorney general; 
 27.4      (b) 12 copies for the legislative commission for review of 
 27.5   administrative rules two copies to the leader of each caucus in 
 27.6   the house of representatives and the senate, two copies to the 
 27.7   legislative reference library, and one copy each to the house of 
 27.8   representatives research department and the office of senate 
 27.9   counsel and research; 
 27.10     (c) 3 copies to the revisor of statutes for transmission to 
 27.11  the Library of Congress for copyright and depository purposes; 
 27.12     (d) 150 copies to the state law library; 
 27.13     (e) 10 copies to the law school of the University of 
 27.14  Minnesota; and 
 27.15     (f) one copy of any compilation or supplement to each 
 27.16  county library maintained pursuant to section 134.12 upon its 
 27.17  request, except in counties containing cities of the first 
 27.18  class.  If a county has not established a county library 
 27.19  pursuant to section 134.12, the copy will be provided to any 
 27.20  public library in the county upon its request. 
 27.21     Sec. 9.  Minnesota Statutes 1996, section 15.0597, 
 27.22  subdivision 5, is amended to read: 
 27.23     Subd. 5.  [NOMINATIONS FOR VACANCIES.] Any person may make 
 27.24  a self-nomination for appointment to an agency vacancy by 
 27.25  completing an application on a form prepared and distributed by 
 27.26  the secretary.  The secretary may provide for the submission of 
 27.27  the application by electronic means.  Any person or group of 
 27.28  persons may, on the prescribed application form, nominate 
 27.29  another person to be appointed to a vacancy so long as the 
 27.30  person so nominated consents in writing on the application form 
 27.31  to the nomination.  The application form shall specify the 
 27.32  nominee's name, mailing address, telephone number, preferred 
 27.33  agency position sought, a statement that the nominee satisfies 
 27.34  any legally prescribed qualifications, and any other information 
 27.35  the nominating person feels would be helpful to the appointing 
 27.36  authority.  The nominating person has the option of indicating 
 28.1   the nominee's sex, political party preference or lack thereof, 
 28.2   status with regard to disability, race and national origin on 
 28.3   the application form.  The application form shall make the 
 28.4   option known.  If a person submits an application at the 
 28.5   suggestion of an appointing authority, the person shall so 
 28.6   indicate on the application form.  Twenty-one days after 
 28.7   publication of a vacancy in the State Register pursuant to 
 28.8   subdivision 4, the secretary shall submit copies of all 
 28.9   applications received for a position to the appointing authority 
 28.10  charged with filling the vacancy.  If no applications have been 
 28.11  received by the secretary for the vacant position by the date 
 28.12  when copies must be submitted to the appointing authority, the 
 28.13  secretary shall so inform the appointing authority.  
 28.14  Applications received by the secretary shall be deemed to have 
 28.15  expired one year after receipt of the application.  An 
 28.16  application for a particular agency position shall be deemed to 
 28.17  be an application for all vacancies in that agency occurring 
 28.18  prior to the expiration of the application and shall be public 
 28.19  information. 
 28.20     Sec. 10.  Minnesota Statutes 1996, section 15.0597, 
 28.21  subdivision 7, is amended to read: 
 28.22     Subd. 7.  [REPORT.] Together with the compilation required 
 28.23  in subdivision 3, the secretary shall annually deliver to the 
 28.24  governor and the legislature a report containing the following 
 28.25  information: 
 28.26     (1) the number of vacancies occurring in the preceding 
 28.27  year; 
 28.28     (2) the number of vacancies occurring as a result of 
 28.29  scheduled ends of terms, unscheduled vacancies and the creation 
 28.30  of new positions; 
 28.31     (3) breakdowns by county, legislative district, and 
 28.32  congressional district, and, if known, the sex, political party 
 28.33  preference or lack thereof, status with regard to disability, 
 28.34  race, and national origin, for members whose agency membership 
 28.35  terminated during the year and appointees to the vacant 
 28.36  positions; and 
 29.1      (4) the number of vacancies filled from applications 
 29.2   submitted by (i) the appointing authorities for the positions 
 29.3   filled, (ii) nominating persons and self-nominees who submitted 
 29.4   applications at the suggestion of appointing authorities, and 
 29.5   (iii) all others. 
 29.6      Sec. 11.  Minnesota Statutes 1996, section 15.0599, 
 29.7   subdivision 4, is amended to read: 
 29.8      Subd. 4.  [REGISTRATION; INFORMATION REQUIRED.] (a) The 
 29.9   appointing authority of a newly established agency shall provide 
 29.10  the secretary with the following information: 
 29.11     (1) the name, mailing address, and telephone number of the 
 29.12  agency; 
 29.13     (2) the legal authority for the establishment of the agency 
 29.14  and the name and the title of the person or persons appointing 
 29.15  agency members; 
 29.16     (3) the powers and duties of the agency and whether the 
 29.17  agency, however designated, is best described by section 15.012, 
 29.18  paragraph (a), (b), (c), (e), or (f); 
 29.19     (4) the number of authorized members, together with any 
 29.20  prescribed restrictions on eligibility; 
 29.21     (5) the roster of current members, including mailing 
 29.22  addresses and telephone numbers; 
 29.23     (6) a breakdown of the membership showing distribution by 
 29.24  county, legislative district, and congressional district and 
 29.25  compliance with any restrictions listed in accordance with 
 29.26  clause (4); 
 29.27     (7) if any members have voluntarily provided the 
 29.28  information, the sex, age, political preference or lack of 
 29.29  preference, status with regard to disability, race, and national 
 29.30  origin of those members; 
 29.31     (8) the dates of commencement and expiration of membership 
 29.32  terms and the expiration date of the agency, if any; 
 29.33     (9) the compensation of members and appropriations or other 
 29.34  money available to the agency; 
 29.35     (10) the name of the state agency or other entity, if any, 
 29.36  required to provide staff or administrative support to the 
 30.1   agency; 
 30.2      (11) the regular meeting schedule, if any, and the 
 30.3   approximate number of hours a month of meetings or other 
 30.4   activities required of members; and 
 30.5      (12) a brief statement of the goal or purpose of the 
 30.6   agency, along with a summary of what an existing agency has 
 30.7   done, or what a newly established agency plans to do to achieve 
 30.8   its goal or purpose. 
 30.9      (b) The chair of an existing agency shall provide 
 30.10  information, covering the fiscal year in which it is 
 30.11  registering, on the number of meetings it has held, its 
 30.12  expenses, and the number of staff hours, if any, devoted to its 
 30.13  support.  The chair shall also, if necessary, update any of the 
 30.14  information previously provided in accordance with paragraph (a).
 30.15     (c) The secretary shall provide forms for the reporting of 
 30.16  information required by this subdivision and may provide for 
 30.17  reporting by electronic means. 
 30.18     Sec. 12.  Minnesota Statutes 1996, section 16A.10, 
 30.19  subdivision 2, is amended to read: 
 30.20     Subd. 2.  [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of 
 30.21  each even-numbered year, an agency must file the following with 
 30.22  the commissioner:  
 30.23     (1) budget and departmental earnings estimates for the most 
 30.24  recent and current fiscal years; 
 30.25     (2) its upcoming biennial budget and departmental earnings 
 30.26  estimates; 
 30.27     (3) a comprehensive and integrated statement of agency 
 30.28  missions and outcome and performance measures; and 
 30.29     (4) a concise explanation of any planned changes in the 
 30.30  level of services or new activities. 
 30.31     The commissioner shall prepare and file the budget 
 30.32  estimates for an agency failing to file them.  By November 30, 
 30.33  the commissioner shall send the final budget format, 
 30.34  departmental earnings report, agency budget plans or requests 
 30.35  for the next biennium, and copies of the filed material to the 
 30.36  ways and means and finance committees, except that the 
 31.1   commissioner shall not be required to transmit information that 
 31.2   identifies executive branch budget decision items.  At this 
 31.3   time, a list of each employee's name, title, and salary must be 
 31.4   available to the legislature, either on paper or through 
 31.5   electronic retrieval. 
 31.6      Sec. 13.  Minnesota Statutes 1996, section 16A.103, 
 31.7   subdivision 1, is amended to read: 
 31.8      Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
 31.9   February and November each year, the commissioner shall prepare 
 31.10  and deliver to the governor and legislature a forecast of state 
 31.11  revenue and expenditures.  The forecast must assume the 
 31.12  continuation of current laws and reasonable estimates of 
 31.13  projected growth in the national and state economies and 
 31.14  affected populations.  Revenue must be estimated for all sources 
 31.15  provided for in current law.  Expenditures must be estimated for 
 31.16  all obligations imposed by law and those projected to occur as a 
 31.17  result of inflation and variables outside the control of the 
 31.18  legislature.  In determining the rate of inflation, the 
 31.19  application of inflation, and the other variables to be included 
 31.20  in the expenditure part of the forecast, the commissioner must 
 31.21  consult with the chair of the senate state government finance 
 31.22  committee, the chair of the house committee on ways and means, 
 31.23  and house and senate fiscal staff.  In addition, the 
 31.24  commissioner shall forecast Minnesota personal income for each 
 31.25  of the years covered by the forecast and include these estimates 
 31.26  in the forecast documents.  A forecast prepared during the first 
 31.27  fiscal year of a biennium must cover that biennium and the next 
 31.28  biennium.  A forecast prepared during the second fiscal year of 
 31.29  a biennium must cover that biennium and the next two bienniums. 
 31.30     Sec. 14.  Minnesota Statutes 1996, section 16A.11, 
 31.31  subdivision 1, is amended to read: 
 31.32     Subdivision 1.  [WHEN.] The governor shall submit a 
 31.33  four-part budget to the legislature.  Parts one and two, the 
 31.34  budget message and detailed operating budget, must be submitted 
 31.35  by the fourth Tuesday in January in each odd-numbered year.  
 31.36  Part three, the detailed recommendations as to capital 
 32.1   expenditure, must be submitted as follows:  agency capital 
 32.2   budget requests by June 15 July 1 of each odd-numbered year; 
 32.3   preliminary governor's recommendations by September 1 of each 
 32.4   odd-numbered year;, and final governor's recommendations by 
 32.5   February 1 January 15 of each even-numbered year.  Part four, 
 32.6   the detailed recommendations as to information technology 
 32.7   expenditure, must be submitted at the same time the governor 
 32.8   submits the budget message to the legislature. 
 32.9      Sec. 15.  Minnesota Statutes 1996, section 16A.11, 
 32.10  subdivision 3b, is amended to read: 
 32.11     Subd. 3b.  [CONTRACTS.] The detailed budget estimate must 
 32.12  also include the following information on professional or 
 32.13  technical services contracts: 
 32.14     (1) the number and amount of contracts over $40,000 for 
 32.15  each agency for the past biennium; 
 32.16     (2) the anticipated number and amount of contracts over 
 32.17  $40,000 for each agency for the upcoming biennium; and 
 32.18     (3) the total number and value of all contracts from the 
 32.19  previous biennium, and the anticipated total number and value of 
 32.20  all contracts for the upcoming biennium. 
 32.21     Sec. 16.  Minnesota Statutes 1996, section 16A.11, 
 32.22  subdivision 3c, is amended to read: 
 32.23     Subd. 3c.  [PART FOUR; DETAILED INFORMATION TECHNOLOGY 
 32.24  BUDGET.] The detailed information technology budget must include 
 32.25  recommendations for information technology projects to be funded 
 32.26  during the next biennium and planning estimates for an 
 32.27  additional two biennia.  It must be submitted with projects 
 32.28  ranked in order of importance among all projects as determined 
 32.29  by the governor. 
 32.30     Sec. 17.  Minnesota Statutes 1996, section 16A.1285, 
 32.31  subdivision 3, is amended to read: 
 32.32     Subd. 3.  [DUTIES OF THE COMMISSIONER OF FINANCE.] The 
 32.33  commissioner of finance shall classify, monitor, analyze, and 
 32.34  report all departmental earnings that fall within the definition 
 32.35  established in subdivision 1.  Specifically, the commissioner 
 32.36  shall: 
 33.1      (1) establish and maintain a classification system that 
 33.2   clearly defines and distinguishes categories and types of 
 33.3   departmental earnings and takes into account the purpose of the 
 33.4   various earnings types and the extent to which various earnings 
 33.5   types serve a public or private interest; 
 33.6      (2) prepare a biennial report that documents collection 
 33.7   costs, purposes, and yields of all departmental earnings, the 
 33.8   report to be submitted to the legislature on or before November 
 33.9   30 of each even-numbered year the fourth Tuesday in January in 
 33.10  each odd-numbered year and to include estimated data for the 
 33.11  year in which the report is prepared, actual data for the two 
 33.12  years immediately before, and estimates for the two years 
 33.13  immediately following; and 
 33.14     (3) prepare and maintain a detailed directory of all 
 33.15  departmental earnings. 
 33.16     Sec. 18.  Minnesota Statutes 1996, section 16A.129, 
 33.17  subdivision 3, is amended to read: 
 33.18     Subd. 3.  [CASH ADVANCES.] When the operations of any 
 33.19  nongeneral fund account would be impeded by projected cash 
 33.20  deficiencies resulting from delays in the receipt of grants, 
 33.21  dedicated income, or other similar receivables, and when the 
 33.22  deficiencies would be corrected within the budget period 
 33.23  involved, the commissioner of finance may use general fund cash 
 33.24  reserves to meet cash demands.  If funds are transferred from 
 33.25  the general fund to meet cash flow needs, the cash flow 
 33.26  transfers must be returned to the general fund as soon as 
 33.27  sufficient cash balances are available in the account to which 
 33.28  the transfer was made.  Any interest earned on general fund cash 
 33.29  flow transfers accrues to the general fund and not to the 
 33.30  accounts or funds to which the transfer was made.  The 
 33.31  commissioner may advance general fund cash reserves to 
 33.32  nongeneral fund accounts where the receipts from other 
 33.33  governmental units cannot be collected within the budget period. 
 33.34     Sec. 19.  Minnesota Statutes 1996, section 16A.15, 
 33.35  subdivision 3, is amended to read: 
 33.36     Subd. 3.  [ALLOTMENT AND ENCUMBRANCE.] (a) A payment may 
 34.1   not be made without prior obligation.  An obligation may not be 
 34.2   incurred against any fund, allotment, or appropriation unless 
 34.3   the commissioner has certified a sufficient unencumbered balance 
 34.4   or the accounting system shows sufficient allotment or 
 34.5   encumbrance balance in the fund, allotment, or appropriation to 
 34.6   meet it.  The commissioner shall determine when the accounting 
 34.7   system may be used to incur obligations without the 
 34.8   commissioner's certification of a sufficient unencumbered 
 34.9   balance.  An expenditure or obligation authorized or incurred in 
 34.10  violation of this chapter is invalid and ineligible for payment 
 34.11  until made valid.  A payment made in violation of this chapter 
 34.12  is illegal.  An employee authorizing or making the payment, or 
 34.13  taking part in it, and a person receiving any part of the 
 34.14  payment, are jointly and severally liable to the state for the 
 34.15  amount paid or received.  If an employee knowingly incurs an 
 34.16  obligation or authorizes or makes an expenditure in violation of 
 34.17  this chapter or takes part in the violation, the violation is 
 34.18  just cause for the employee's removal by the appointing 
 34.19  authority or by the governor if an appointing authority other 
 34.20  than the governor fails to do so.  In the latter case, the 
 34.21  governor shall give notice of the violation and an opportunity 
 34.22  to be heard on it to the employee and to the appointing 
 34.23  authority.  A claim presented against an appropriation without 
 34.24  prior allotment or encumbrance may be made valid on 
 34.25  investigation, review, and approval by the commissioner agency 
 34.26  head in accordance with the commissioner's policy, if the 
 34.27  services, materials, or supplies to be paid for were actually 
 34.28  furnished in good faith without collusion and without intent to 
 34.29  defraud.  The commissioner may then draw a warrant to pay the 
 34.30  claim just as properly allotted and encumbered claims are paid. 
 34.31     (b) The commissioner may approve payment for materials and 
 34.32  supplies in excess of the obligation amount when increases are 
 34.33  authorized by section 16B.07, subdivision 2. 
 34.34     (c) To minimize potential construction delay claims, an 
 34.35  agency with a project funded by a building appropriation may 
 34.36  allow a contractor to proceed with supplemental work within the 
 35.1   limits of the appropriation before money is encumbered.  Under 
 35.2   this circumstance, the agency may requisition funds and allow 
 35.3   contractors to expeditiously proceed with a construction 
 35.4   sequence.  While the contractor is proceeding, the agency shall 
 35.5   immediately act to encumber the required funds. 
 35.6      Sec. 20.  Minnesota Statutes 1996, section 16A.642, 
 35.7   subdivision 1, is amended to read: 
 35.8      Subdivision 1.  [REPORTS.] (a) The commissioner of finance 
 35.9   shall report to the chairs of the senate committee on finance 
 35.10  and the house of representatives committees on ways and means 
 35.11  and on capital investment by February 1 of each even-numbered 
 35.12  odd-numbered year on the following: 
 35.13     (1) all state building projects for which bonds have been 
 35.14  authorized and issued by a law enacted more than seven years 
 35.15  before February 1 of that even-numbered year and of which 20 
 35.16  percent or less of a project's authorization has been encumbered 
 35.17  or otherwise obligated for the purpose stated in the law 
 35.18  authorizing the issue; and 
 35.19     (2) all state bonds authorized and issued for purposes 
 35.20  other than building projects reported under clause (1), by a law 
 35.21  enacted more than seven years before February 1 of that 
 35.22  even-numbered year, and the amount of any balance that is 
 35.23  unencumbered or otherwise not obligated for the purpose stated 
 35.24  in the law authorizing the issue. 
 35.25     (1) all laws authorizing the issuance of state bonds for 
 35.26  state or local government building projects enacted more than 
 35.27  five years before February 1 of that odd-numbered year; the 
 35.28  projects authorized to be acquired and constructed with the bond 
 35.29  proceeds for which less than 100 percent of the authorized total 
 35.30  cost has been expended, encumbered, or otherwise obligated; the 
 35.31  cost of contracts to be let in accordance with existing plans 
 35.32  and specifications shall be considered expended for this report; 
 35.33  and the amount of bonds not issued and bond proceeds held but 
 35.34  not previously expended, encumbered, or otherwise obligated for 
 35.35  these projects; and 
 35.36     (2) all laws authorizing the issuance of state bonds for 
 36.1   state or local government programs or projects other than those 
 36.2   described in clause (1), enacted more than five years before 
 36.3   February 1 of that odd-numbered year; and the amount of bonds 
 36.4   not issued and bond proceeds held but not previously expended, 
 36.5   encumbered, or otherwise obligated for these programs and 
 36.6   projects. 
 36.7      (b) The commissioner shall also report on bond 
 36.8   authorizations or bond proceed balances that may be canceled 
 36.9   because projects have been canceled, completed, or otherwise 
 36.10  concluded, or because the purposes for which the bonds were 
 36.11  authorized or issued have been canceled, completed, or otherwise 
 36.12  concluded.  The bond authorizations or bond proceed balances 
 36.13  that are unencumbered or otherwise not obligated that are 
 36.14  reported by the commissioner under this subdivision are 
 36.15  canceled, effective July 1 of the year of the report, unless 
 36.16  specifically reauthorized by act of the legislature. 
 36.17     Sec. 21.  Minnesota Statutes 1996, section 16A.642, is 
 36.18  amended by adding a subdivision to read: 
 36.19     Subd. 3.  [APPLICATION OF UNUSED BOND PROCEEDS.] All 
 36.20  canceled bond proceeds shall be transferred to the state bond 
 36.21  fund and used to pay or redeem bonds from which they were 
 36.22  derived. 
 36.23     Sec. 22.  Minnesota Statutes 1996, section 16B.20, 
 36.24  subdivision 2, is amended to read: 
 36.25     Subd. 2.  [ADVISORY COUNCIL.] A small business and targeted 
 36.26  group procurement advisory council is created.  The council 
 36.27  consists of 13 members appointed by the commissioner of 
 36.28  administration.  A chair of the advisory council shall be 
 36.29  elected from among the members.  The appointments are subject to 
 36.30  the appointments program provided by section 15.0597.  The 
 36.31  terms, compensation, and removal of members are as provided in 
 36.32  section 15.059.  Notwithstanding section 15.059, the council 
 36.33  does not expire until June 30, 1998. 
 36.34     Sec. 23.  Minnesota Statutes 1996, section 16B.24, 
 36.35  subdivision 5, is amended to read: 
 36.36     Subd. 5.  [RENTING OUT STATE PROPERTY.] (a)  [AUTHORITY.] 
 37.1   The commissioner may rent out state property, real or personal, 
 37.2   that is not needed for public use, if the rental is not 
 37.3   otherwise provided for or prohibited by law.  The property may 
 37.4   not be rented out for more than five years at a time without the 
 37.5   approval of the state executive council and may never be rented 
 37.6   out for more than 25 years.  A rental agreement may provide that 
 37.7   the state will reimburse a tenant for a portion of capital 
 37.8   improvements that the tenant makes to state real property if the 
 37.9   state does not permit the tenant to renew the lease at the end 
 37.10  of the rental agreement. 
 37.11     (b)  [RESTRICTIONS.] Paragraph (a) does not apply to state 
 37.12  trust fund lands, other state lands under the jurisdiction of 
 37.13  the department of natural resources, lands forfeited for 
 37.14  delinquent taxes, lands acquired under section 298.22, or lands 
 37.15  acquired under section 41.56 which are under the jurisdiction of 
 37.16  the department of agriculture.  
 37.17     (c)  [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
 37.18  Chapel, located within the boundaries of Fort Snelling State 
 37.19  Park, is available for use only on payment of a rental fee.  The 
 37.20  commissioner shall establish rental fees for both public and 
 37.21  private use.  The rental fee for private use by an organization 
 37.22  or individual must reflect the reasonable value of equivalent 
 37.23  rental space.  Rental fees collected under this section must be 
 37.24  deposited in the general fund.  
 37.25     (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
 37.26  shall establish rental rates for all living accommodations 
 37.27  provided by the state for its employees.  Money collected as 
 37.28  rent by state agencies pursuant to this paragraph must be 
 37.29  deposited in the state treasury and credited to the general fund.
 37.30     (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
 37.31  AGENCIES.] The commissioner may lease portions of the 
 37.32  state-owned buildings in the capitol complex, the capitol square 
 37.33  building, the health building, the Duluth government center, and 
 37.34  the building at 1246 University Avenue, St. Paul, Minnesota, to 
 37.35  state agencies and the court administrator on behalf of the 
 37.36  judicial branch of state government and charge rent on the basis 
 38.1   of space occupied.  Notwithstanding any law to the contrary, all 
 38.2   money collected as rent pursuant to the terms of this section 
 38.3   shall be deposited in the state treasury.  Money collected as 
 38.4   rent to recover the depreciation and bond interest costs of a 
 38.5   building funded from the state bond proceeds fund shall be 
 38.6   credited to the general fund.  Money collected as rent to 
 38.7   recover capital expenditures from capital asset preservation and 
 38.8   replacement appropriations and statewide building access 
 38.9   appropriations shall be credited to a segregated account in a 
 38.10  special revenue fund.  Money in the account is appropriated to 
 38.11  the commissioner to be expended for asset preservation projects 
 38.12  as determined by the commissioner.  Money collected as rent to 
 38.13  recover the depreciation cost and interest costs of a building 
 38.14  built with other state dedicated funds shall be credited to the 
 38.15  dedicated fund which funded the original acquisition or 
 38.16  construction.  All other money received shall be credited to the 
 38.17  general services revolving fund. 
 38.18     Sec. 24.  [16B.275] [CAPITOL AREA CAFETERIAS.] 
 38.19     In entering into contracts for operation of cafeterias in 
 38.20  the capitol complex, the commissioner must attempt to ensure the 
 38.21  department does not receive revenues in excess of those needed 
 38.22  to operate and maintain the cafeteria space.  
 38.23     Sec. 25.  Minnesota Statutes 1996, section 16B.35, is 
 38.24  amended by adding a subdivision to read: 
 38.25     Subd. 5.  [CONTRACTOR'S BOND NOT REQUIRED.] Sections 574.26 
 38.26  to 574.32 do not apply to this section. 
 38.27     Sec. 26.  Minnesota Statutes 1996, section 16B.70, 
 38.28  subdivision 2, is amended to read: 
 38.29     Subd. 2.  [COLLECTION AND REPORTS.] All permit surcharges 
 38.30  must be collected by each municipality and a portion of them 
 38.31  remitted to the state.  Each municipality having a population 
 38.32  greater than 20,000 people shall prepare and submit to the 
 38.33  commissioner once a month a report of fees and surcharges on 
 38.34  fees collected during the previous month but shall retain the 
 38.35  greater of two percent or that amount collected up to $25 to 
 38.36  apply against the administrative expenses the municipality 
 39.1   incurs in collecting the surcharges.  All other municipalities 
 39.2   shall submit the report and surcharges on fees once a quarter 
 39.3   but shall retain the greater of four percent or that amount 
 39.4   collected up to $25 to apply against the administrative expenses 
 39.5   the municipalities incur in collecting the surcharges.  The 
 39.6   report, which must be in a form prescribed by the commissioner, 
 39.7   must be submitted together with a remittance covering the 
 39.8   surcharges collected by the 15th day following the month or 
 39.9   quarter in which the surcharges are collected.  All money 
 39.10  collected by the commissioner through surcharges and other fees 
 39.11  prescribed by sections 16B.59 to 16B.75, which are payable to 
 39.12  the state, must be paid shall be deposited in the state 
 39.13  government special revenue fund and is appropriated to the 
 39.14  commissioner who shall deposit them in the state treasury for 
 39.15  credit to a special revenue fund for the purpose of 
 39.16  administering and enforcing the state building code under 
 39.17  sections 16B.59 to 16B.75. 
 39.18     Sec. 27.  [16B.93] [DEFINITIONS.] 
 39.19     Subdivision 1.  [APPLICABILITY.] For purposes of sections 
 39.20  16B.93 to 16B.96, the terms in this section have the meanings 
 39.21  given them. 
 39.22     Subd. 2.  [CONTRACTOR.] "Contractor" means an individual, 
 39.23  business entity, or other private organization that is awarded a 
 39.24  contract by the commissioner to negotiate and administer the 
 39.25  price contracts for prescription drugs under section 16B.94, 
 39.26  subdivision 2. 
 39.27     Subd. 3.  [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING 
 39.28  ALLIANCE OR NONGOVERNMENTAL ALLIANCE.] "Nongovernmental 
 39.29  pharmaceutical contracting alliance" or "nongovernmental 
 39.30  alliance" means the alliance established and administered by the 
 39.31  commissioner under the authority granted in section 16B.94. 
 39.32     Subd. 4.  [MANUFACTURER.] "Manufacturer" means a 
 39.33  manufacturer as defined under section 151.44, paragraph (c). 
 39.34     Subd. 5.  [PRESCRIPTION DRUG.] "Prescription drug" means a 
 39.35  drug as defined in section 151.44, paragraph (d). 
 39.36     Subd. 6.  [PURCHASER.] "Purchaser" means a pharmacy as 
 40.1   defined in section 151.01, subdivision 2, including pharmacies 
 40.2   operated by health maintenance organizations and hospitals. 
 40.3      Subd. 7.  [SELLER.] "Seller" means a person, other than a 
 40.4   manufacturer, who sells or distributes drugs to purchasers or 
 40.5   other sellers within the state. 
 40.6      Sec. 28.  [16B.94] [NONGOVERNMENTAL PHARMACEUTICAL 
 40.7   CONTRACTING ALLIANCE.] 
 40.8      Subdivision 1.  [ESTABLISHMENT AND ADMINISTRATION.] The 
 40.9   commissioner, in consultation with appropriate experts on 
 40.10  pharmaceutical pricing, shall establish and administer a 
 40.11  nongovernmental pharmaceutical contracting alliance.  The 
 40.12  nongovernmental alliance shall negotiate contracts for 
 40.13  prescription drugs with manufacturers and sellers and shall make 
 40.14  the contract prices negotiated available to purchasers.  The 
 40.15  commissioner shall select the prescription drugs for which price 
 40.16  contracts are negotiated.  The commissioner shall, to the 
 40.17  greatest extent feasible, operate the alliance using the 
 40.18  administrative and contracting procedures of the Minnesota 
 40.19  multistate governmental contracting alliance for pharmaceuticals 
 40.20  administered by the commissioner under the authority granted in 
 40.21  section 471.59.  The commissioner may negotiate a price 
 40.22  differential based on volume purchasing and may also grant 
 40.23  multiple awards. 
 40.24     Subd. 2.  [USE OF CONTRACTOR.] The commissioner may 
 40.25  contract with an individual, business entity, or other private 
 40.26  organization to serve as a contractor to negotiate and 
 40.27  administer the price contracts for prescription drugs.  In 
 40.28  developing requirements for the contractor, the commissioner 
 40.29  shall consult with appropriate experts on pharmaceutical pricing.
 40.30     Subd. 3.  [ADMINISTRATIVE COSTS.] The commissioner may 
 40.31  charge manufacturers and sellers that enter into prescription 
 40.32  drug price contracts with the commissioner under subdivision 1 a 
 40.33  fee to cover the commissioner's expenses in negotiating and 
 40.34  administering the price contracts.  The fee established shall 
 40.35  have the force and effect of law if the requirements of section 
 40.36  14.386, paragraph (a), are met.  Section 14.386, paragraph (b), 
 41.1   does not apply.  Fees collected by the commissioner under this 
 41.2   subdivision must be deposited in the state treasury and credited 
 41.3   to a special account.  Money in the account is appropriated to 
 41.4   the commissioner to pay the costs of negotiating and 
 41.5   administering price contracts under this section. 
 41.6      Subd. 4.  [EXPANSION TO OTHER STATES.] The commissioner may 
 41.7   expand the nongovernmental alliance to other states and make the 
 41.8   contract prices negotiated available to non-Minnesota purchasers.
 41.9      Sec. 29.  [16B.95] [STATE CONTRACT PRICE.] 
 41.10     Subdivision 1.  [MANUFACTURER AND SELLER REQUIREMENT.] A 
 41.11  manufacturer or seller that contracts with the commissioner 
 41.12  shall make the contract price negotiated available to all 
 41.13  purchasers.  
 41.14     Subd. 2.  [PURCHASER REQUIREMENT.] The commissioner shall 
 41.15  require purchasers that purchase prescription drugs at the 
 41.16  contract price to pass at least 75 percent of the savings 
 41.17  resulting from purchases at the negotiated contract price to 
 41.18  consumers.  The commissioner may require a purchaser that plans 
 41.19  to purchase prescription drugs at the contract price negotiated 
 41.20  by the commissioner to submit any information regarding 
 41.21  prescription drug purchase projections the commissioner 
 41.22  determines is necessary for contract price negotiations. 
 41.23     Sec. 30.  [16B.96] [NONDISCRIMINATION.] 
 41.24     A health plan company, as defined in section 62Q.01, shall 
 41.25  not discriminate against a purchaser for taking advantage of the 
 41.26  contract price negotiated by the commissioner. 
 41.27     Sec. 31.  [43A.046] [STAFF REDUCTIONS.] 
 41.28     In order to maximize delivery of services to the public, if 
 41.29  layoffs of state employees are necessary, each agency with more 
 41.30  than 50 full-time equivalent employees must reduce at least the 
 41.31  same percentage of management and supervisory personnel as line 
 41.32  and support personnel. 
 41.33     Sec. 32.  [43A.047] [CONTRACTED SERVICES.] 
 41.34     (a) Executive agencies, including the Minnesota state 
 41.35  colleges and universities system, must demonstrate that they 
 41.36  cannot use available staff before hiring outside consultants or 
 42.1   services.  If use of consultants is necessary, agencies are 
 42.2   encouraged to negotiate contracts that will involve permanent 
 42.3   staff, so as to upgrade and maximize training of state employees.
 42.4      (b) If agencies reduce operating budgets, agencies must 
 42.5   give priority to reducing spending on professional and technical 
 42.6   service contracts before laying off permanent employees. 
 42.7      (c) Agencies must report to senate finance and house ways 
 42.8   and means committees by August 1 each year on implementation of 
 42.9   this section during the previous fiscal year.  The reports must 
 42.10  include amounts spent on professional and technical service 
 42.11  contracts during the previous fiscal year. 
 42.12     Sec. 33.  Minnesota Statutes 1996, section 43A.17, 
 42.13  subdivision 4, is amended to read: 
 42.14     Subd. 4.  [MEDICAL SPECIALISTS.] (a) The commissioner may 
 42.15  without regard to subdivision 1 establish special salary rates 
 42.16  and plans of compensation designed to attract and retain 
 42.17  exceptionally qualified doctors of medicine.  These rates and 
 42.18  plans shall be included in the commissioner's plan.  In 
 42.19  establishing salary rates and eligibility for nomination for 
 42.20  payment at special rates, the commissioner shall consider the 
 42.21  standards of eligibility established by national medical 
 42.22  specialty boards where appropriate.  The incumbents assigned to 
 42.23  these special ranges shall be excluded from the collective 
 42.24  bargaining process. 
 42.25     (b) The commissioner may without regard to subdivision 1, 
 42.26  but subject to collective bargaining agreements or compensation 
 42.27  plans, establish special salary rates designed to attract and 
 42.28  retain exceptionally qualified information systems staff. 
 42.29     Sec. 34.  Minnesota Statutes 1996, section 43A.38, 
 42.30  subdivision 4, is amended to read: 
 42.31     Subd. 4.  [USE OF STATE PROPERTY.] (a) An employee shall 
 42.32  not use or allow the use of state time, supplies or state-owned 
 42.33  or leased property and equipment for the employee's private 
 42.34  interests or any other use not in the interest of the state, 
 42.35  except as provided by law. 
 42.36     (b) An employee may use state time, property, or equipment 
 43.1   to communicate electronically with other persons including, but 
 43.2   not limited to, elected officials, the employer, or an exclusive 
 43.3   bargaining representative under chapter 179A, provided this use, 
 43.4   including the value of the time spent, results in no incremental 
 43.5   cost to the state or results in an incremental cost that is so 
 43.6   small as to make accounting for it unreasonable or 
 43.7   administratively impracticable. 
 43.8      (c) The commissioners of administration and employee 
 43.9   relations shall issue a statewide policy on the use of 
 43.10  electronic mail and other forms of electronic communications by 
 43.11  executive branch state employees.  The policy is not subject to 
 43.12  the provisions of chapter 14 or 179A.  Appointing authorities in 
 43.13  the legislative and judicial branches shall issue policies on 
 43.14  these issues for their employees.  The policies shall permit 
 43.15  state employees to make reasonable use of state time, property, 
 43.16  and equipment for personal communications and shall address 
 43.17  issues of privacy, content of communications, and the definition 
 43.18  of reasonable use as well as other issues the commissioners and 
 43.19  appointing authorities identify as necessary and relevant. 
 43.20     Sec. 35.  [62J.685] [PRESCRIPTION DRUG PRICE DISCLOSURE.] 
 43.21     By January 1, 1998, and annually thereafter, a health plan 
 43.22  company or hospital licensed under chapter 144 must submit to 
 43.23  the attorney general the total amount of:  (1) aggregate 
 43.24  purchases of prescription drugs, and (2) discount, rebate or 
 43.25  other payment received during the previous calendar year for 
 43.26  aggregate purchases of prescription drugs, including any fee 
 43.27  associated with education, data collection, research, training 
 43.28  or market share movement received from a manufacturer as defined 
 43.29  under section 151.44, paragraph (c), or wholesale drug 
 43.30  distributor as defined under section 151.44, paragraph (d).  The 
 43.31  identification of individual manufacturers or wholesalers or 
 43.32  specific drugs is not required.  The attorney general shall make 
 43.33  this information available to the public through the information 
 43.34  clearinghouse under section 62J.2930. 
 43.35     Sec. 36.  Minnesota Statutes 1996, section 116P.05, 
 43.36  subdivision 1, is amended to read: 
 44.1      Subdivision 1.  [MEMBERSHIP.] (a) A legislative commission 
 44.2   on Minnesota resources of 16 20 members is created, consisting 
 44.3   of the chairs of the house and senate committees on environment 
 44.4   and natural resources or designees appointed for the terms of 
 44.5   the chairs, the chairs of the house and senate committees on 
 44.6   environment and natural resources finance or designees appointed 
 44.7   for the terms of the chairs, the chairs of the house ways and 
 44.8   means and senate finance committees or designees appointed for 
 44.9   the terms of the chairs, six seven members of the senate 
 44.10  appointed by the subcommittee on committees of the committee on 
 44.11  rules and administration, and six seven members of the house 
 44.12  appointed by the speaker.  
 44.13     At least two three members from the senate and two three 
 44.14  members from the house must be from the minority caucus.  
 44.15  Members are entitled to reimbursement for per diem expenses plus 
 44.16  travel expenses incurred in the services of the commission.  
 44.17     (b) Members shall appoint a chair who shall preside and 
 44.18  convene meetings as often as necessary to conduct duties 
 44.19  prescribed by this chapter. 
 44.20     (c) Members shall serve on the commission until their 
 44.21  successors are appointed. 
 44.22     (d) Vacancies occurring on the commission shall not affect 
 44.23  the authority of the remaining members of the commission to 
 44.24  carry out their duties, and vacancies shall be filled in the 
 44.25  same manner under paragraph (a). 
 44.26     Sec. 37.  Minnesota Statutes 1996, section 138.31, is 
 44.27  amended by adding a subdivision to read: 
 44.28     Subd. 14.  "Qualified professional archaeologist" means an 
 44.29  archaeologist who meets the United States Secretary of the 
 44.30  Interior's professional qualification standards in Code of 
 44.31  Federal Regulations, title 36, part 61, appendix A, or 
 44.32  subsequent revisions. 
 44.33     Sec. 38.  Minnesota Statutes 1996, section 138.35, is 
 44.34  amended to read: 
 44.35     138.35 [STATE ARCHAEOLOGIST.] 
 44.36     Subdivision 1.  [APPOINTMENT.] The state archaeologist 
 45.1   shall be a qualified professional archaeologist who meets the 
 45.2   United States Secretary of the Interior's professional 
 45.3   qualification standards in Code of Federal Regulations, title 
 45.4   36, part 61, appendix A.  The state archaeologist shall be paid 
 45.5   a salary in the range of salaries paid to comparable state 
 45.6   employees in the classified service.  The state archaeologist 
 45.7   may not be employed by the Minnesota historical society.  The 
 45.8   state archaeologist shall be appointed by the board executive 
 45.9   council of the Minnesota historical society in consultation with 
 45.10  the Indian affairs council for a four-year term. to perform the 
 45.11  duties in sections 138.31 to 138.42.  The position is in the 
 45.12  unclassified service in the executive branch and is subject to 
 45.13  chapter 43A but not chapter 179A.  The compensation and terms 
 45.14  and conditions of employment are as provided by section 43A.18, 
 45.15  subdivision 3.  The state archaeologist's salary shall be 
 45.16  established by the commissioner of employee relations within a 
 45.17  range established by the commissioner of employee relations.  
 45.18     Subd. 1a.  [ADMINISTRATIVE SUPPORT; STAFF.] The 
 45.19  commissioner of administration shall provide the state 
 45.20  archaeologist with necessary administrative services.  State 
 45.21  agencies shall provide the state archaeologist upon request with 
 45.22  advisory staff services on matters relating to the duties and 
 45.23  jurisdiction of the state archaeologist.  The state 
 45.24  archaeologist shall hire staff and maintain offices as necessary 
 45.25  to perform the duties in sections 138.31 to 138.42.  Staff shall 
 45.26  serve in the unclassified service and be governed by section 
 45.27  43A.18, subdivision 2. 
 45.28     Subd. 1b.  [CONTRACTS; VOLUNTEERS; GRANTS AND GIFTS.] The 
 45.29  state archaeologist may contract with the federal government, 
 45.30  local governmental units, other states, the university and other 
 45.31  educational institutions, and private persons or organizations 
 45.32  as necessary in the performance of the duties in sections 138.31 
 45.33  to 138.42.  Contracts made under this section for professional 
 45.34  services shall not be subject to chapter 16B, as it relates to 
 45.35  competitive bidding.  The state archaeologist may recruit, 
 45.36  train, and accept, without regard to personnel laws or rules, 
 46.1   the services of individuals as volunteers for or in aid of 
 46.2   performance of the state archaeologist's duties, and may provide 
 46.3   for the incidental expenses of volunteers, such as 
 46.4   transportation, lodging, and subsistence.  The state 
 46.5   archaeologist may apply for, receive, and expend grants and 
 46.6   gifts of money consistent with the powers and duties in sections 
 46.7   138.31 to 138.42.  Any money so received is appropriated for the 
 46.8   purpose for which it was granted.  
 46.9      Subd. 2.  [DUTIES OF STATE ARCHAEOLOGIST.] The duties of 
 46.10  the state archaeologist shall include the following: 
 46.11     (a) to sponsor, engage in, and direct fundamental research 
 46.12  into the archaeology of this state and to encourage and 
 46.13  coordinate archaeological research and investigation undertaken 
 46.14  within the state.; 
 46.15     (b) to cooperate with other agencies of the state which may 
 46.16  have authority in areas where state sites are located, or which 
 46.17  may have the responsibility for marking state sites, or 
 46.18  arranging for their being viewed by the public.; 
 46.19     (c) to protect to the extent possible and to encourage the 
 46.20  preservation of archaeological sites located on privately owned 
 46.21  property.; 
 46.22     (d) to retrieve and protect objects of archaeological 
 46.23  significance discovered by field archaeology on state sites or 
 46.24  discovered during the course of any public construction or 
 46.25  demolition work, and, to the extent possible, those discovered 
 46.26  during the course of any other construction or demolition work.; 
 46.27     (e) to obtain for the state other objects of archaeological 
 46.28  significance, and data relating thereto.; 
 46.29     (f) to cooperate with the historical society, the 
 46.30  university, and other custodians to preserve objects of 
 46.31  archaeological significance, together with the data relating 
 46.32  thereto.; 
 46.33     (g) to disseminate archaeological facts through the 
 46.34  publication of reports of archaeological research conducted 
 46.35  within the state.; 
 46.36     (h) to approve licensing of qualified persons professional 
 47.1   archaeologists to engage in field archaeology on state sites, as 
 47.2   provided in section 138.36,; and 
 47.3      (i) to otherwise carry out and enforce sections 138.31 to 
 47.4   138.42. 
 47.5      Subd. 3.  [EMPLOYMENT OF PERSONNEL.] The state 
 47.6   archaeologist may employ personnel to assist in carrying out the 
 47.7   state archaeologist's duties and may spend state appropriations 
 47.8   to compensate such personnel. 
 47.9      Sec. 39.  Minnesota Statutes 1996, section 138.91, is 
 47.10  amended by adding a subdivision to read: 
 47.11     Subd. 4.  [SALARY SUPPLEMENT.] The Minnesota humanities 
 47.12  commission is eligible for a salary supplement in the same 
 47.13  manner as state agencies.  The commissioner of finance shall 
 47.14  determine the amount of the salary supplement based on available 
 47.15  appropriations.  Employees of the commission shall be paid in 
 47.16  accordance with the appropriate pay plan.  
 47.17     Sec. 40.  Minnesota Statutes 1996, section 151.21, is 
 47.18  amended by adding a subdivision to read: 
 47.19     Subd. 4a.  A pharmacy must post a sign in a conspicuous 
 47.20  location and in a typeface easily seen at the counter where 
 47.21  prescriptions are dispensed stating:  "In order to save you 
 47.22  money, this pharmacy will substitute whenever possible an 
 47.23  FDA-approved, less expensive, generic drug product, which is 
 47.24  therapeutically equivalent to and safely interchangeable with 
 47.25  the one prescribed by your doctor, unless you object to this 
 47.26  substitution. 
 47.27     Sec. 41.  Minnesota Statutes 1996, section 176.611, is 
 47.28  amended by adding a subdivision to read: 
 47.29     Subd. 2a.  [SETTLEMENT AND CONTINGENCY RESERVE ACCOUNT.] To 
 47.30  reduce long-term costs, minimize impairment to agency operations 
 47.31  and budgets, and distribute risk of one-time catastrophic 
 47.32  claims, the commissioner of employee relations shall maintain a 
 47.33  separate account within the state compensation revolving fund.  
 47.34  The account shall be used to pay for lump-sum or annuitized 
 47.35  settlements, structured claim settlements, and one-time large, 
 47.36  legal, catastrophic medical, indemnity, or other irregular claim 
 48.1   costs that might otherwise pose a significant burden for 
 48.2   agencies.  The commissioner of employee relations, with the 
 48.3   approval of the commissioner of finance, may establish criteria 
 48.4   and procedures for payment from the account on an agency's 
 48.5   behalf.  The commissioner of employee relations may assess 
 48.6   agencies on a reimbursement or premium basis from time-to-time 
 48.7   to ensure adequate account reserves.  The account consists of 
 48.8   appropriations from the general fund, receipts from billings to 
 48.9   agencies, and credited investment gains or losses attributable 
 48.10  to balances in the account.  The state board of investment shall 
 48.11  invest the assets of the account according to section 11A.24. 
 48.12     Sec. 42.  [197.79] [VETERANS' BONUS PROGRAM.] 
 48.13     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 48.14  section, the following terms have the meanings given them. 
 48.15     (a) "Applicant" means a veteran or a veteran's guardian, 
 48.16  conservator, or personal representative or a beneficiary or a 
 48.17  beneficiary's guardian, conservator, or personal representative 
 48.18  who has filed an application with the commissioner for a bonus 
 48.19  under this section. 
 48.20     (b) "Application" means a request for a bonus payment by a 
 48.21  veteran, a veteran's beneficiary, or a veteran's guardian, 
 48.22  conservator, or personal representative through submission of 
 48.23  written information on a form designed by the commissioner for 
 48.24  this purpose. 
 48.25     (c) "Beneficiary" means in relation to a deceased veteran 
 48.26  and in the order named: 
 48.27     (1) the surviving spouse, if not remarried; 
 48.28     (2) the children of the veteran, if there is no surviving 
 48.29  spouse or the surviving spouse has remarried; 
 48.30     (3) the veteran's surviving parent or parents; 
 48.31     (4) the veteran's surviving sibling or siblings; or 
 48.32     (5) the veteran's estate. 
 48.33     (d) "Commissioner" means the commissioner of the department 
 48.34  of veterans affairs. 
 48.35     (e) "Department" means the department of veterans affairs. 
 48.36     (f) "Eligibility period for the bonus" means the period 
 49.1   from August 2, 1990, to July 31, 1991. 
 49.2      (g) "Guardian" or "conservator" means the legally appointed 
 49.3   representative of a minor beneficiary or incompetent veteran, 
 49.4   the chief officer of a hospital or institution in which the 
 49.5   incompetent veteran is placed if the officer is authorized to 
 49.6   accept money for the benefit of the minor or incompetent, the 
 49.7   person determined by the commissioner to be the person who is 
 49.8   legally charged with the responsibility for the care of the 
 49.9   minor beneficiary or incompetent veteran, or the person 
 49.10  determined by the commissioner to be the person who has assumed 
 49.11  the responsibility for the care of the minor beneficiary or 
 49.12  incompetent veteran. 
 49.13     (h) "Honorable service" means honorable service in the 
 49.14  United States armed forces, as evidenced by: 
 49.15     (1) an honorable discharge; 
 49.16     (2) a general discharge under honorable conditions; 
 49.17     (3) in the case of an officer, a certificate of honorable 
 49.18  service; or 
 49.19     (4) in the case of an applicant who is currently serving in 
 49.20  active duty in the United States armed forces, a certificate 
 49.21  from an appropriate service authority that the applicant's 
 49.22  service to date has been honorable. 
 49.23     (i) "Resident veteran" means a veteran who served in active 
 49.24  duty in the United States armed forces at any time during the 
 49.25  eligibility period for the bonus, and who also: 
 49.26     (1) has been separated or discharged from the United States 
 49.27  armed forces, and whose home of record at the time of entry into 
 49.28  active duty in the United States armed forces, as indicated on 
 49.29  the person's form DD-214, is the state of Minnesota; or 
 49.30     (2) is currently serving in the United States armed forces, 
 49.31  and has a certificate from an appropriate service authority 
 49.32  stating that the person:  (i) served in active duty in the 
 49.33  United States armed forces at any time during the eligibility 
 49.34  period for the bonus; and (ii) had Minnesota as the home of 
 49.35  record at the time of entry into active duty in the United 
 49.36  States armed forces. 
 50.1      (j) "Service connected" means caused by an injury or 
 50.2   disease incurred or aggravated while on active duty, as 
 50.3   determined by the United States department of veterans affairs. 
 50.4      (k) "Veteran" has the meaning given in section 197.447, and 
 50.5   also includes: 
 50.6      (1) a person who is providing honorable service on active 
 50.7   duty in the United States armed forces and has not been 
 50.8   separated or discharged; or 
 50.9      (2) a member of a reserve component of the armed forces of 
 50.10  the United States, including the national guard, who was ordered 
 50.11  to active duty under United States Code, title 10, section 673b, 
 50.12  during the eligibility period for the bonus and who was deployed 
 50.13  to a duty station outside the state of Minnesota, as verified by 
 50.14  the appropriate service authority.  An applicant's DD-214 form 
 50.15  showing award of the Southwest Asia service medal during the 
 50.16  eligibility period for the bonus will suffice as verification. 
 50.17     "Veteran" does not include a member of the national guard 
 50.18  or the reserve components of the United States armed forces 
 50.19  ordered to active duty for the sole purpose of training. 
 50.20     Subd. 2.  [BONUS AMOUNT.] (a) For a resident veteran who 
 50.21  provided honorable service in the United States armed forces at 
 50.22  any time during the eligibility period for the bonus, the bonus 
 50.23  amount is: 
 50.24     (1) $300, if the veteran did not receive the Southwest Asia 
 50.25  service medal during the eligibility period for the bonus; 
 50.26     (2) $600, if the veteran received the Southwest Asia 
 50.27  service medal during the eligibility period for the bonus; or 
 50.28     (3) $2,000, if the veteran was eligible for the Southwest 
 50.29  Asia service medal during the eligibility period for the bonus, 
 50.30  and died during that time period as a direct result of a service 
 50.31  connected injury, disease, or condition. 
 50.32     (b) In the case of a deceased veteran, the commissioner 
 50.33  shall pay the bonus to the veteran's beneficiary. 
 50.34     (c) No payment may be made to a veteran or beneficiary who 
 50.35  has received a similar bonus payment from another state. 
 50.36     Subd. 3.  [APPLICATION PROCESS.] A veteran, or the 
 51.1   beneficiary of a veteran, entitled to a bonus may make 
 51.2   application for a bonus to the department on a form prescribed 
 51.3   by the commissioner and verified by the applicant.  If the 
 51.4   veteran is incompetent or the veteran's beneficiary is a minor 
 51.5   or incompetent, the application must be made by the person's 
 51.6   guardian or conservator.  An application must be accompanied by 
 51.7   evidence of residency, honorable service, active duty service 
 51.8   during the eligibility period for the bonus, and any other 
 51.9   information the commissioner requires.  The applicant must 
 51.10  indicate on the application form the bonus amount for which the 
 51.11  applicant expects to be eligible.  
 51.12     If the information provided in the application is 
 51.13  incomplete, the department must notify the applicant in writing 
 51.14  of that fact and must identify the items of information needed 
 51.15  to make a determination.  After notifying an applicant that the 
 51.16  person's application is incomplete, the department shall hold 
 51.17  the application open while awaiting further information from the 
 51.18  applicant, and the applicant may submit that information without 
 51.19  filing an appeal and request for review. 
 51.20     Subd. 4.  [BONUS DETERMINATION, APPEAL PROCESS, AND 
 51.21  PAYMENT.] (a) Except as provided in paragraphs (b) to (d), the 
 51.22  commissioner may not make a bonus payment to any applicant. 
 51.23     (b) Upon submission of proof to the department that an 
 51.24  applicant is entitled to payment under this section, the 
 51.25  department shall determine the amount of the bonus for which the 
 51.26  applicant is eligible.  If the department's determination of the 
 51.27  bonus amount is in agreement with, or is greater than, the 
 51.28  amount requested by the applicant in the application, the 
 51.29  commissioner shall pay to the applicant the bonus amount, as 
 51.30  determined by the department. 
 51.31     (c) If the department determines that the bonus amount for 
 51.32  an applicant is less than the amount requested in the 
 51.33  application, the department shall notify the applicant in 
 51.34  writing of its determination, and include with that notification 
 51.35  a form that the applicant may use to accept the department's 
 51.36  determination and thereby waive the right to review of that 
 52.1   determination.  A filing by the applicant of the acceptance and 
 52.2   waiver form with the department constitutes a waiver by the 
 52.3   applicant of the right to review.  Upon receipt of such 
 52.4   acceptance and waiver from the applicant, the department shall 
 52.5   pay to the applicant the bonus amount, as determined by the 
 52.6   department.  Unless an appeal is filed with the commissioner by 
 52.7   an applicant in accordance with paragraph (d), all orders, 
 52.8   decisions, and acts of the department with reference to the 
 52.9   claim of the applicant are final and conclusive upon the 
 52.10  applicant. 
 52.11     (d) Upon notification that the department's determination 
 52.12  of the bonus amount is less than the bonus amount requested by 
 52.13  the applicant in the application, the applicant may appeal the 
 52.14  department's determination and request a review by the 
 52.15  commissioner.  The appeal and request for review must be made in 
 52.16  writing within 60 days of the department's mailing of its 
 52.17  determination.  Following receipt by the department of an 
 52.18  applicant's appeal and request for review by the commissioner, 
 52.19  no payment shall be made by the department to the applicant 
 52.20  until the review has been completed.  For such review, the 
 52.21  applicant may submit additional information to supplement the 
 52.22  information provided in the application, and may request that 
 52.23  the review be conducted either:  (1) through written 
 52.24  correspondence; or (2) in person with the commissioner.  The 
 52.25  commissioner shall act upon an appeal and request for review 
 52.26  within seven working days of its receipt by the department.  
 52.27  Following review by the commissioner of the application and any 
 52.28  additional information submitted or presented by the applicant, 
 52.29  the commissioner's determination is final.  Any expenses 
 52.30  incurred by the applicant as the result of the applicant's 
 52.31  appeal and request for review are the obligation of the 
 52.32  applicant. 
 52.33     Subd. 5.  [NOTICES.] Notices and correspondence to an 
 52.34  applicant must be directed to the applicant by mail at the 
 52.35  address listed in the application.  Notices and correspondence 
 52.36  to the commissioner must be addressed to the commissioner's 
 53.1   office in St. Paul. 
 53.2      Subd. 6.  [POWERS AND DUTIES OF THE COMMISSIONER.] (a) The 
 53.3   commissioner shall determine who is the beneficiary of a 
 53.4   deceased veteran and determine who is the person who has assumed 
 53.5   the responsibility for the care of any minor or incompetent. 
 53.6      (b) The commissioner may employ persons and may incur other 
 53.7   expenses necessary to administer this section. 
 53.8      Subd. 7.  [TAX EXEMPT GIFTS.] The bonus payments provided 
 53.9   for by this section are gifts or gratuities given as a token of 
 53.10  appreciation to eligible veterans and are not compensation for 
 53.11  services rendered.  The payments are exempt from state taxation. 
 53.12     Subd. 8.  [NONASSIGNABLE; EXCEPTED FROM PROCESS.] A claim 
 53.13  for payment under this section is not assignable or subject to 
 53.14  garnishment, attachment, or levy of execution. 
 53.15     Subd. 9.  [PENALTIES.] A person who knowingly makes a false 
 53.16  statement relating to a material fact in support of a claim for 
 53.17  a bonus under this section is guilty of a misdemeanor. 
 53.18     Subd. 10.  [DEADLINE FOR APPLICATIONS.] The application 
 53.19  period for the bonus program established in this section shall 
 53.20  be November 1, 1997, to June 30, 1999.  The department may not 
 53.21  receive or accept new applications after June 30, 1999. 
 53.22     Sec. 43.  Minnesota Statutes 1996, section 327.33, 
 53.23  subdivision 2, is amended to read: 
 53.24     Subd. 2.  [FEES.] The commissioner shall by rule establish 
 53.25  reasonable fees for seals, installation seals and inspections 
 53.26  which are sufficient to cover all costs incurred in the 
 53.27  administration of sections 327.31 to 327.35.  The commissioner 
 53.28  shall also establish by rule a monitoring inspection fee in an 
 53.29  amount that will comply with the secretary's fee distribution 
 53.30  program.  This monitoring inspection fee shall be an amount paid 
 53.31  by the manufacturer for each manufactured home produced in 
 53.32  Minnesota.  The monitoring inspection fee shall be paid by the 
 53.33  manufacturer to the secretary.  The rules of the fee 
 53.34  distribution program require the secretary to distribute the 
 53.35  fees collected from all manufactured home manufacturers among 
 53.36  states approved and conditionally approved based on the number 
 54.1   of new manufactured homes whose first location after leaving the 
 54.2   manufacturer is on the premises of a distributor, dealer or 
 54.3   purchaser in that state.  All fees received money collected by 
 54.4   the commissioner shall be deposited in the state treasury and 
 54.5   credited to the general fund through fees prescribed by sections 
 54.6   327.31 to 327.36 shall be deposited in the state government 
 54.7   special revenue fund and is appropriated to the commissioner for 
 54.8   the purpose of administering and enforcing the manufactured home 
 54.9   building code under sections 327.31 to 327.36. 
 54.10     Sec. 44.  Minnesota Statutes 1996, section 327B.04, 
 54.11  subdivision 7, is amended to read: 
 54.12     Subd. 7.  [FEES; LICENSES; WHEN GRANTED.] Each application 
 54.13  for a license or license renewal must be accompanied by a fee in 
 54.14  an amount established by the commissioner by rule pursuant to 
 54.15  section 327B.10, which shall be paid into the state treasury and 
 54.16  credited to the general fund.  The fees shall be set in an 
 54.17  amount which over the fiscal biennium will produce revenues 
 54.18  approximately equal to the expenses which the commissioner 
 54.19  expects to incur during that fiscal biennium while administering 
 54.20  and enforcing sections 327B.01 to 327B.12.  All money collected 
 54.21  by the commissioner through fees prescribed in sections 327B.01 
 54.22  to 327B.12 shall be deposited in the state government special 
 54.23  revenue fund and is appropriated to the commissioner for 
 54.24  purposes of administering and enforcing the provisions of this 
 54.25  chapter.  The commissioner shall grant or deny a license 
 54.26  application or a renewal application within 60 days of its 
 54.27  filing.  If the license is granted, the commissioner shall 
 54.28  license the applicant as a dealer or manufacturer for the 
 54.29  remainder of the calendar year.  Upon application by the 
 54.30  licensee, the commissioner shall renew the license for a two 
 54.31  year period, if:  
 54.32     (a) the renewal application satisfies the requirements of 
 54.33  subdivisions 3 and 4; 
 54.34     (b) the renewal applicant has made all listings, 
 54.35  registrations, notices and reports required by the commissioner 
 54.36  during the preceding year; and 
 55.1      (c) the renewal applicant has paid all fees owed pursuant 
 55.2   to sections 327B.01 to 327B.12 and all taxes, arrearages, and 
 55.3   penalties owed to the state.  
 55.4      Sec. 45.  Minnesota Statutes 1996, section 349.163, 
 55.5   subdivision 4, is amended to read: 
 55.6      Subd. 4.  [INSPECTION OF MANUFACTURERS.] Employees of the 
 55.7   board and the division of gambling enforcement may inspect the 
 55.8   books, records, inventory, and business premises of a licensed 
 55.9   manufacturer without notice during the normal business hours of 
 55.10  the manufacturer.  The board may charge a manufacturer for the 
 55.11  actual cost of conducting scheduled or unscheduled inspections 
 55.12  of the manufacturer's facilities, where the amount charged to 
 55.13  the manufacturer for such inspections in any year does not 
 55.14  exceed $7,500.  The board shall deposit in a separate account in 
 55.15  the state treasury all money received as reimbursement for the 
 55.16  costs of inspections.  Until July 1, 1999, money in the account 
 55.17  is appropriated to the board to pay the costs of the inspections.
 55.18     Sec. 46.  Minnesota Statutes 1996, section 356.865, 
 55.19  subdivision 3, is amended to read: 
 55.20     Subd. 3.  [COST STATE APPROPRIATION.] The cost of the 
 55.21  payments made under this section is the responsibility of the 
 55.22  state.  Payments under this section are the responsibility of 
 55.23  the Minneapolis employees retirement fund.  A separate state aid 
 55.24  is provided toward the level dollar amortized cost of the 
 55.25  payments.  For state fiscal years 1992 to 2001 inclusive, there 
 55.26  is appropriated annually $550,000 from the general fund to the 
 55.27  commissioner of finance to be added, in quarterly installments, 
 55.28  to the annual state contribution amount determined under section 
 55.29  422A.101, subdivision 3.  After fiscal year 2001, any difference 
 55.30  between the cumulative benefit amounts actually paid under this 
 55.31  section after fiscal year 1991 and the amounts paid to the 
 55.32  retirement fund by the state under this subdivision plus 
 55.33  investment earnings on the aid shall be included by the 
 55.34  retirement fund board and the actuary retained by the 
 55.35  legislative commission on pensions and retirement in determining 
 55.36  financial requirements of the fund and contributions under 
 56.1   section 422A.101. 
 56.2      Sec. 47.  Minnesota Statutes 1996, section 363.073, 
 56.3   subdivision 1, is amended to read: 
 56.4      Subdivision 1.  [SCOPE OF APPLICATION.] No department or 
 56.5   agency of the state shall accept any bid or proposal for a 
 56.6   contract or agreement or execute any contract or agreement for 
 56.7   goods or services in excess of $50,000 with any business having 
 56.8   more than 20 full-time employees, either within or outside this 
 56.9   state, on a single working day during the previous 12 months, 
 56.10  unless the firm or business has an affirmative action plan for 
 56.11  the employment of minority persons, women, and the disabled that 
 56.12  has been approved by the commissioner of human rights.  Receipt 
 56.13  of a certificate of compliance issued by the commissioner shall 
 56.14  signify that a firm or business has an affirmative action plan 
 56.15  that has been approved by the commissioner.  A certificate shall 
 56.16  be valid for a period of two years.  A municipality as defined 
 56.17  in section 466.01, subdivision 1, that receives state money for 
 56.18  any reason is encouraged to prepare and implement an affirmative 
 56.19  action plan for the employment of minority persons, women, and 
 56.20  the disabled and submit the plan to the commissioner of human 
 56.21  rights. 
 56.22     Sec. 48.  Minnesota Statutes 1996, section 422A.101, 
 56.23  subdivision 3, is amended to read: 
 56.24     Subd. 3.  [STATE CONTRIBUTIONS.] (a) Subject to the 
 56.25  limitation set forth in paragraph (c), the state shall pay to 
 56.26  the Minneapolis employees retirement fund annually an amount 
 56.27  equal to the amount calculated under paragraph (b). 
 56.28     (b) The payment amount is an amount equal to the financial 
 56.29  requirements of the Minneapolis employees retirement fund 
 56.30  reported in the actuarial valuation of the fund prepared by the 
 56.31  commission-retained actuary pursuant to section 356.215 for the 
 56.32  most recent year but based on a target date for full 
 56.33  amortization of the unfunded actuarial accrued liabilities by 
 56.34  June 30, 2020, less the amount of employee contributions 
 56.35  required pursuant to section 422A.10, and the amount of employer 
 56.36  contributions required pursuant to subdivisions 1a, 2, and 2a.  
 57.1   Payments shall be made in four equal installments, occurring on 
 57.2   March 15, July 15, September 15, and November 15 annually.  
 57.3      (c) The annual state contribution under this subdivision 
 57.4   may not exceed $10,455,000 through fiscal year 1998 and 
 57.5   $9,000,000 beginning in fiscal year 1999, plus the cost of the 
 57.6   annual supplemental benefit determined under section 356.865. 
 57.7      (b) (d) If the amount determined under paragraph (a) (b) 
 57.8   exceeds the limitation on the state payment in paragraph 
 57.9   (a) $11,910,000, the excess must be allocated to and paid to the 
 57.10  fund by the employers identified in subdivisions 1a and 2, other 
 57.11  than units of metropolitan government.  Each employer's share of 
 57.12  the excess is proportionate to the employer's share of the 
 57.13  fund's unfunded actuarial accrued liability as disclosed in the 
 57.14  annual actuarial valuation prepared by the actuary retained by 
 57.15  the legislative commission on pensions and retirement compared 
 57.16  to the total unfunded actuarial accrued liability attributed to 
 57.17  all employers identified in subdivisions 1a and 2, other than 
 57.18  units of metropolitan government.  Payments must be made in 
 57.19  equal installments as set forth in paragraph (a) (b).  
 57.20     Sec. 49.  [465.803] [REPAYMENT OF GRANTS.] 
 57.21     Subdivision 1.  [REPAYMENT PROCEDURES.] Without regard to 
 57.22  whether a grant recipient offered to repay the grant in its 
 57.23  original application, as part of a grant awarded under section 
 57.24  465.798, 465.799, or 465.801, the board may require the grant 
 57.25  recipient to repay all or part of the grant if the board 
 57.26  determines the project funded by the grant resulted in an actual 
 57.27  savings for the participating local units of government.  The 
 57.28  grant agreement must specify how the savings are to be 
 57.29  determined and the period of time over which the savings will be 
 57.30  used to calculate a repayment requirement.  The repayment of 
 57.31  grant money under this section may not exceed an amount equal to 
 57.32  the total savings achieved through the implementation of the 
 57.33  project multiplied by the total amount of the grant divided by 
 57.34  the total budget for the project and may not exceed the total 
 57.35  amount of the original grant. 
 57.36     Subd. 2.  [BONUS POINTS.] In addition to the points awarded 
 58.1   to competitive grant applications under section 465.802, the 
 58.2   board shall award additional points to any applicant that 
 58.3   projects a potential cost savings through the implementation of 
 58.4   its project and offers to repay the grant money under the 
 58.5   formula in subdivision 1. 
 58.6      Subd. 3.  [USE OF REPAYMENT REVENUE.] All grant money 
 58.7   repaid to the board under this section is appropriated to the 
 58.8   board for additional grants authorized by sections 465.798, 
 58.9   465.799, and 465.801. 
 58.10     Sec. 50.  Minnesota Statutes 1996, section 475A.06, 
 58.11  subdivision 7, is amended to read: 
 58.12     Subd. 7.  [AUTHORITY FOR BONDS; LIMIT; APPROPRIATION 
 58.13  PURPOSE; PROCEDURAL SOURCES.] The commissioner of finance is 
 58.14  authorized to sell and issue Minnesota state municipal aid bonds 
 58.15  in an aggregate principal amount not to exceed 
 58.16  $4,330,000 $1,192,295, the proceeds of which, except as provided 
 58.17  in subdivision 1, are appropriated to the state municipal bond 
 58.18  guaranty fund for the purpose of providing funds to be loaned to 
 58.19  municipalities for the acquisition and betterment of public 
 58.20  lands and buildings and other public improvements of a capital 
 58.21  nature, when needed to pay the principal of or interest on bonds 
 58.22  issued for this purpose or bonds issued to refund such 
 58.23  guaranteed bonds, in accordance with the provisions of sections 
 58.24  475A.01 to 475A.06.  The bonds shall be sold, issued, and 
 58.25  secured as provided in subdivisions 1 to 6 and in Article XI, 
 58.26  Section 7 of the Constitution. 
 58.27     Sec. 51.  [TEEN COURT PROGRAM.] 
 58.28     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 58.29  section, the following terms have the meanings given. 
 58.30     (a) "Minor offense" means: 
 58.31     (1) a juvenile petty offense; 
 58.32     (2) a petty misdemeanor; or 
 58.33     (3) any misdemeanor, other than a misdemeanor-level 
 58.34  violation of Minnesota Statutes, section 588.20 (contempt of 
 58.35  court), 609.224 (fifth degree assault), 609.2242 (domestic 
 58.36  assault), 609.324 (prostitution and related crimes), 609.563 
 59.1   (arson in the third degree), 609.576 (negligent fires, dangerous 
 59.2   smoking), 609.66 (dangerous weapons), or 617.23 (indecent 
 59.3   exposure), a major traffic offense, or an adult traffic offense, 
 59.4   as defined in Minnesota Statutes, section 260.193. 
 59.5      (b) "Teen" means an individual who is at least 10 years old 
 59.6   but less than 18 years old. 
 59.7      (c) "Teen court" and "teen court program" mean an 
 59.8   alternative procedure under which a local law enforcement 
 59.9   agency, county attorney, school, or probation agency may divert 
 59.10  from the juvenile court system a teen who allegedly has 
 59.11  committed a minor offense, on condition that the teen 
 59.12  voluntarily appear before and receive a disposition from a jury 
 59.13  of the teen's peers and successfully complete the terms and 
 59.14  conditions of the disposition.  These programs also may be used 
 59.15  by a school as an alternative to formal school disciplinary 
 59.16  proceedings.  
 59.17     Subd. 2.  [SUPREME COURT RULES.] The supreme court is 
 59.18  requested to adopt rules and procedures to govern the teen court 
 59.19  program that are consistent with this section. 
 59.20     Subd. 3.  [APPLICATION TO ESTABLISH TEEN COURT.] (a) Any 
 59.21  group of two or more adult sponsors may apply to the office of 
 59.22  strategic and long-range planning to establish a teen court.  
 59.23  These sponsors must be affiliated with an agency, entity, or 
 59.24  other organized program or group.  
 59.25     (b) An application to establish a teen court must include: 
 59.26     (1) the names, addresses, and telephone numbers of two or 
 59.27  more adult sponsors and a description of the entity, agency, or 
 59.28  other organized program or group with which the adult sponsors 
 59.29  are affiliated; 
 59.30     (2) the names, addresses, and telephone numbers of all 
 59.31  teens who have signed letters of commitment to participate 
 59.32  voluntarily as teen court members in the teen court program; 
 59.33     (3) a certification from the adult sponsors that adequate 
 59.34  adult sponsorship exists and that there are a sufficient number 
 59.35  of teen volunteers to make the functioning of the teen court 
 59.36  feasible and meaningful; and 
 60.1      (4) a letter of support from the judicial district court 
 60.2   administrator agreeing to help the teen court track the 
 60.3   recidivism rates of teen court participants. 
 60.4      Subd. 4.  [REFERRAL TO TEEN COURT PROGRAM.] Once the teen 
 60.5   court program has been established, it may receive referrals for 
 60.6   eligible teens from local law enforcement, county attorneys, 
 60.7   school officials, and probation agencies.  The process of 
 60.8   referral is to be established by the individual teen court 
 60.9   program, in coordination with other established teen court 
 60.10  programs in the judicial district. 
 60.11     Subd. 5.  [FEE.] The teen court program may require a teen 
 60.12  to pay a nonrefundable fee to cover the costs of administering 
 60.13  the program.  This fee must be reduced or waived for a 
 60.14  participant who does not have the ability to pay the fee. 
 60.15     Subd. 6.  [TEEN COURT PROGRAM COMPONENTS.] (a) Before a 
 60.16  teen participates in the teen court program, a teen court 
 60.17  sponsor or the referring source must: 
 60.18     (1) contact the victim, if any, of the offense, or make a 
 60.19  good faith attempt to contact the victim, if any, and the victim 
 60.20  must be advised that the victim may participate in the teen 
 60.21  court proceedings; and 
 60.22     (2) at least seven days before the teen participates in the 
 60.23  program, provide to the county attorney of the teen's residence 
 60.24  the teen's name, date of birth, and residential address and a 
 60.25  description of the offense. 
 60.26     (b) Before a teen court disposes of a case, it must 
 60.27  establish a range of dispositional alternatives for offenses 
 60.28  that is appropriate to the teen court's community.  These 
 60.29  dispositions may include the following: 
 60.30     (1) community service; 
 60.31     (2) mandatory participation in appropriate counseling, 
 60.32  appropriate treatment, law-related educational classes, or other 
 60.33  educational programs; 
 60.34     (3) a requirement that the teen defendant participate as a 
 60.35  juror in future proceedings before the teen court; 
 60.36     (4) restitution, where appropriate; and 
 61.1      (5) a fine, not to exceed the amount permitted in Minnesota 
 61.2   Statutes, section 260.195.  The fine permitted in Minnesota 
 61.3   Statutes, section 260.185, may only be imposed for misdemeanor 
 61.4   level offenses.  
 61.5      The teen court does not have the power to place a teen 
 61.6   outside the home. 
 61.7      (c) Except as provided in paragraph (d), the teen court 
 61.8   program may be used only where: 
 61.9      (1) the teen acknowledges responsibility for the offense; 
 61.10     (2) the teen voluntarily agrees to participate in the teen 
 61.11  court program; 
 61.12     (3) the judge of the teen court is a judge or an attorney 
 61.13  admitted to practice law in this state; 
 61.14     (4) the teen's parent or legal guardian accompanies the 
 61.15  teen in all teen court proceedings; 
 61.16     (5) the county attorney does not notify the teen court 
 61.17  before the teen's participation that the offense will be handled 
 61.18  in juvenile court or in a pretrial diversion program established 
 61.19  under Minnesota Statutes, section 388.24; and 
 61.20     (6) the teen court program has established a training 
 61.21  component for teen and adult volunteers. 
 61.22     (d) When a teen court operates as an alternative to a 
 61.23  school disciplinary policy, the teen's parent or legal guardian 
 61.24  must be notified of the teen's involvement in the program, 
 61.25  according to the school district's disciplinary policy.  The 
 61.26  teen's parent or legal guardian does not need to accompany the 
 61.27  teen in teen court proceedings. 
 61.28     (e) The teen court shall notify the referring source as 
 61.29  soon as possible upon discovery that the teen has failed to 
 61.30  comply with any part of the disposition imposed under paragraph 
 61.31  (b).  Either juvenile court proceedings or formal school 
 61.32  disciplinary proceedings, where applicable, or both, may be 
 61.33  commenced against a teen who fails to comply with the 
 61.34  disposition under paragraph (b). 
 61.35     Subd. 7.  [EVALUATION AND REPORTS.] (a) The results of all 
 61.36  proceedings in teen court must be reported to the office of 
 62.1   strategic and long-range planning on a form provided by that 
 62.2   office.  The teen court must submit the report no later than 
 62.3   July 15 for all activity during the first six months of the 
 62.4   calendar year and by January 15 for all activity during the last 
 62.5   six months of the preceding calendar year.  A copy of this 
 62.6   report also must be provided to the county attorney of the 
 62.7   county in which the teen court operates.  Each report must 
 62.8   include the following: 
 62.9      (1) the number of cases handled by the teen court, 
 62.10  including a breakdown of the number of cases from each referring 
 62.11  agency; 
 62.12     (2) a list of the offenses for which the teen court imposed 
 62.13  a disposition, including a breakdown showing the number of teen 
 62.14  court participants committing each type of offense; 
 62.15     (3) a list of the dispositions imposed by the teen court, 
 62.16  including a breakdown showing the number of times each 
 62.17  particular disposition was imposed; and 
 62.18     (4) information on the cases that were referred back to the 
 62.19  referring agency under subdivision 6, paragraph (e). 
 62.20     (b) Each teen court shall report to the office of strategic 
 62.21  and long-range planning by June 30 each year on its progress in 
 62.22  achieving outcome measures and indicators.  This report must 
 62.23  include an analysis of recidivism rates for teen court 
 62.24  participants, based upon a method for measuring these rates as 
 62.25  determined by the office of strategic and long-range planning. 
 62.26     (c) The office of strategic and long-range planning shall 
 62.27  assist teen court programs in developing outcome measures and 
 62.28  indicators.  These outcome measures and indicators must be 
 62.29  established before any teen court begins to impose dispositions 
 62.30  and must allow for both evaluation of each teen court program 
 62.31  and for statewide evaluation of the teen court program. 
 62.32     Subd. 8.  [ADMINISTRATION.] The office of strategic and 
 62.33  long-range planning has authority to administer funds to teen 
 62.34  court programs that comply with this section and the supreme 
 62.35  court rules adopted under this section.  The office of strategic 
 62.36  and long-range planning may receive and administer public and 
 63.1   private funds for the purpose of this section. 
 63.2      Sec. 52.  [YOUTH SPORTS PROGRAMS; CRITERIA.] 
 63.3      The Minnesota amateur sports commission shall develop a 
 63.4   plan to promote recreational programs for youth.  The proposals 
 63.5   must be for programs for which there is a demonstrated shortage 
 63.6   of access, based on needs of youth.  The plan must be based on 
 63.7   the criteria in this section. 
 63.8      (a) The programs must be intended primarily for use for 
 63.9   youth sports in the entire community and not for school athletic 
 63.10  functions. 
 63.11     (b) Programs must emphasize access for low-income youth and 
 63.12  for other youth who would not otherwise have access to the 
 63.13  programs.  
 63.14     (c) Proposals must contain a plan to ensure equitable use 
 63.15  for youth of each gender. 
 63.16     (d) To the extent possible, program grants must be 
 63.17  dispersed equitably, must be located to maximize potential for 
 63.18  full utilization, and must accommodate noncompetitive family and 
 63.19  community use for all ages in addition to use for competitive 
 63.20  youth sports. 
 63.21     (e) To the extent possible, 50 percent of all grants must 
 63.22  be awarded to communities in greater Minnesota. 
 63.23     Sec. 53.  [ADVISORY COUNCIL ON ECONOMIC FUTURE.] 
 63.24     (a) The director of the office of strategic and long-range 
 63.25  planning shall convene an advisory council on Minnesota's 
 63.26  economic future to: 
 63.27     (1) agree on a set of strategic goals to guide the state's 
 63.28  development through the year 2010; 
 63.29     (2) develop a set of indicators to measure progress toward 
 63.30  those goals; and 
 63.31     (3) develop a mechanism to renew and update strategies and 
 63.32  goals on an ongoing basis and monitor and report results to the 
 63.33  people of this state. 
 63.34     (b) The advisory council shall consist of 13 members.  Ten 
 63.35  legislators shall be appointed as follows:  three by the speaker 
 63.36  of the house of representatives, two by the minority leader of 
 64.1   the house of representatives, and five by the subcommittee on 
 64.2   committees of the committee on rules and administration of the 
 64.3   senate, two of whom must be members of the minority party or an 
 64.4   independent.  The other three members are the director of 
 64.5   strategic and long-range planning, the commissioner of finance, 
 64.6   and the commissioner of trade and economic development.  The 
 64.7   governor may designate other commissioners or agency heads to 
 64.8   serve as nonvoting members.  The speaker of the house and the 
 64.9   subcommittee on committees of the senate may appoint additional 
 64.10  legislators to serve as nonvoting members.  The advisory council 
 64.11  may consult with knowledgeable persons from the public and 
 64.12  private sectors. 
 64.13     (c) The advisory council shall report its findings and 
 64.14  recommendations to the legislature by February 15, 1998.  The 
 64.15  advisory council expires upon submission of its report.  
 64.16     Sec. 54.  [ADVISORY COUNCIL ON LOCAL GOVERNMENT.] 
 64.17     Subdivision 1.  [ESTABLISHED.] An advisory council on the 
 64.18  roles and responsibilities of local governments is established. 
 64.19     Subd. 2.  [DUTIES.] The advisory council shall study and 
 64.20  make recommendations to the legislature by July 1, 1998, on the 
 64.21  appropriate roles and responsibilities of local and regional 
 64.22  government in the metropolitan area, as defined in Minnesota 
 64.23  Statutes, section 473.121, subdivision 2.  The advisory council 
 64.24  shall examine: 
 64.25     (1) what services should be provided and what functions 
 64.26  fulfilled by local or regional government; 
 64.27     (2) what level of government is appropriate for the 
 64.28  efficient, effective, and equitable delivery of these services 
 64.29  and functions; 
 64.30     (3) what powers are needed by local and regional government 
 64.31  to deliver the services; and 
 64.32     (4) what governance structures will meet the identified 
 64.33  roles and responsibilities of local and regional government and 
 64.34  be responsive to, understandable by, and accountable to citizens.
 64.35     The advisory council may consider alternatives to the 
 64.36  existing governance structures in order to fulfill the 
 65.1   requirements of this section. 
 65.2      Subd. 3.  [MEMBERSHIP.] The advisory council consists of 25 
 65.3   members, who serve at the pleasure of the appointing authority, 
 65.4   as follows: 
 65.5      (1) four representatives of cities, appointed by the 
 65.6   association of metropolitan municipalities; 
 65.7      (2) two representatives of towns, appointed by the 
 65.8   Minnesota association of townships; 
 65.9      (3) four representatives of counties, appointed by the 
 65.10  association of Minnesota counties; 
 65.11     (4) two representatives of school districts, appointed by 
 65.12  the Minnesota school boards association; 
 65.13     (5) eight legislators; four house members, of whom two are 
 65.14  members of the majority caucus appointed by the speaker of the 
 65.15  house of representatives and two are members of the minority 
 65.16  caucus appointed by the house minority leader; and four senate 
 65.17  members, of whom two are members of the majority caucus and two 
 65.18  are members of the minority caucus, appointed by the 
 65.19  subcommittee on committees of the committee on rules and 
 65.20  administration; 
 65.21     (6) the chair of the metropolitan council, or the chair's 
 65.22  designee; and 
 65.23     (7) four public members, appointed by the governor. 
 65.24     Members must be appointed as soon as practicable after the 
 65.25  effective date of this section. 
 65.26     Subd. 4.  [FIRST MEETING; SELECTION OF A CHAIR.] A member 
 65.27  appointed by the association of metropolitan municipalities 
 65.28  shall be selected by the association to convene the first 
 65.29  meeting of the advisory council.  At the first meeting, the 
 65.30  advisory council shall select a member to serve as chair. 
 65.31     Subd. 5.  [ADMINISTRATIVE; STAFF ASSISTANCE.] The office of 
 65.32  strategic and long-range planning shall provide administrative 
 65.33  and staff assistance to the advisory council. 
 65.34     Subd. 6.  [EXPIRATION.] The advisory council established 
 65.35  under subdivision 1 expires June 30, 1999. 
 65.36     Sec. 55.  [CORPORATE SUBSIDY REFORM COMMISSION.] 
 66.1      Subdivision 1.  [ESTABLISHMENT.] (a) A bipartisan corporate 
 66.2   subsidy reform commission is created. 
 66.3      (b) The commission shall evaluate selected subsidy programs 
 66.4   and tax laws for the following: 
 66.5      (1) public purpose; including jobs, wages, and other 
 66.6   economic development benefits; 
 66.7      (2) criterion for award; and 
 66.8      (3) accountability and enforcement mechanisms used to 
 66.9   facilitate the achievement of the public purpose. 
 66.10     (c) The commission shall examine whether these subsidy 
 66.11  programs or tax laws impede competition or provide preferential 
 66.12  treatment to private enterprises. 
 66.13     Subd. 2.  [SCOPE.] The commission shall review subsidy 
 66.14  programs and tax laws including: 
 66.15     (1) tax expenditures and other tax concessions; 
 66.16     (2) direct spending and loans; 
 66.17     (3) public spending that indirectly affects the economic 
 66.18  development of the region; and 
 66.19     (4) regulation of private activity for the purpose of 
 66.20  economic development. 
 66.21     Subd. 3.  [REPORT.] The commission shall submit a report to 
 66.22  the legislature by December 15, 1997.  Included within the 
 66.23  report, the commission may suggest changes in the public 
 66.24  purpose, criterion for award, administration, accountability and 
 66.25  enforcement mechanisms, and funding of the subsidy programs.  
 66.26  The commission may also suggest changes in the applicable tax 
 66.27  laws. 
 66.28     Subd. 4.  [MEMBERSHIP.] The commission consists of 19 
 66.29  members.  The speaker of the house shall appoint five members, 
 66.30  including at least two members of the minority caucus.  The 
 66.31  senate subcommittee on committees shall appoint five members, 
 66.32  including at least two members of the minority caucus.  The 
 66.33  commissioner of trade and economic development and the 
 66.34  commissioner of revenue shall each appoint one member from their 
 66.35  respective departments.  These members shall appoint seven 
 66.36  members from the general public, of which at most two members 
 67.1   directly receive some type of public assistance described in 
 67.2   subdivision 2. 
 67.3      Subd. 5.  [STAFF ASSISTANCE.] House and senate employees 
 67.4   must staff the commission. 
 67.5      Subd. 6.  [NOTIFICATION.] In accordance with Minnesota 
 67.6   Statutes, section 471.705, the public may attend any meeting 
 67.7   held by the commission. 
 67.8      Subd. 7.  [EXPIRATION.] The commission established under 
 67.9   subdivision 1 expires July 1, 1998. 
 67.10     Sec. 56.  [INFORMATION POLICY TASK FORCE.] 
 67.11     Subdivision 1.  [CREATION.] An information policy task 
 67.12  force is created to study and make recommendations regarding 
 67.13  Minnesota law on public information policy, including government 
 67.14  data practices and information technology issues.  The task 
 67.15  force consists of: 
 67.16     (1) two members of the senate appointed by the 
 67.17  subcommittees on committees of the committee on rules and 
 67.18  administration; 
 67.19     (2) two members of the house of representatives appointed 
 67.20  by the speaker; 
 67.21     (3) four members appointed by the governor; 
 67.22     (4) two nonlegislative members appointed by the 
 67.23  subcommittee on committees of the committee on rules and 
 67.24  administration of the senate; and 
 67.25     (5) two nonlegislative members appointed by the speaker of 
 67.26  the house of representatives.  
 67.27     At least one member from each legislative body must be a 
 67.28  member of the majority party and at least one member from each 
 67.29  body must be a member of the minority party or an independent. 
 67.30     Subd. 2.  [DUTIES; REPORT.] The task force shall study: 
 67.31     (1) the content and organization of government data 
 67.32  practices statutes in Minnesota Statutes, chapter 13, and 
 67.33  related statutes dealing with access to government data, fair 
 67.34  information practices, and privacy; 
 67.35     (2) issues related to surveillance and other forms of 
 67.36  information technology, including the impact of technology on 
 68.1   data practices and privacy; 
 68.2      (3) procedures and structures for developing and 
 68.3   implementing a coherent and coordinated approach to public 
 68.4   information policy; 
 68.5      (4) approaches to information policy in other states and 
 68.6   foreign jurisdictions; and 
 68.7      (5) other information policy issues identified by the task 
 68.8   force. 
 68.9      In its study of statutes under clause (1), the task force 
 68.10  shall include an evaluation to determine whether any statutes 
 68.11  are inconsistent or obsolete. 
 68.12     The task force shall submit a progress report to the 
 68.13  legislature by February 1, 1998, and a final report of its 
 68.14  findings and recommendations, including any proposed 
 68.15  legislation, to the legislature by January 15, 1999. 
 68.16     Subd. 3.  [SUPPORT.] The commissioner of administration and 
 68.17  the director of the office of strategic and long-range planning 
 68.18  shall provide staff and other support services to the task force.
 68.19  Legislative support to the task force must come from existing 
 68.20  resources.  The executive director of the Minnesota office of 
 68.21  technology or the executive director's designee shall assist in 
 68.22  the task force's activities.  
 68.23     Subd. 4.  [COMPENSATION.] When authorized by the task 
 68.24  force, members of the task force who are not legislators or 
 68.25  full-time employees of the state or a political subdivision 
 68.26  shall be compensated at the rate of $55 a day spent on task 
 68.27  force activities, plus expenses in the same manner and amount as 
 68.28  authorized by the commissioner's plan adopted under Minnesota 
 68.29  Statutes, section 43A.18, subdivision 2, and child care expenses 
 68.30  that would not have been incurred if the member had not attended 
 68.31  the task force meeting.  A member who is a full-time employee of 
 68.32  the state or a political subdivision may not receive the daily 
 68.33  payment, but may suffer no loss in compensation or benefits from 
 68.34  the state or the political subdivision as a result of service on 
 68.35  the task force.  A member who is a full-time employee of the 
 68.36  state or a political subdivision may receive the expenses 
 69.1   provided for in this subdivision unless the expenses are 
 69.2   reimbursed by another source.  A member who is an employee of 
 69.3   the state or a political subdivision may be reimbursed for child 
 69.4   care expenses only for time spent on task force activities that 
 69.5   are outside their normal working hours.  
 69.6      Subd. 5.  [EXPIRATION.] The task force expires upon 
 69.7   submission of its final report to the legislature under 
 69.8   subdivision 2. 
 69.9      Sec. 57.  [STUDY OF SCHOOL FUND LAND MANAGEMENT.] 
 69.10     If directed by the legislative audit commission, the 
 69.11  legislative auditor shall conduct the studies in this section.  
 69.12  The legislative auditor shall conduct a study to determine 
 69.13  whether the administrative costs expended by the department of 
 69.14  natural resources to manage permanent school fund land reflect 
 69.15  the actual cost of managing the permanent school fund land.  The 
 69.16  study shall also encompass investment policies to maximize 
 69.17  returns to the fund.  The auditor shall also study whether 
 69.18  another unit of government could manage the permanent school 
 69.19  fund land more cost-efficiently.  The auditor shall report to 
 69.20  the permanent school fund advisory committee by January 15, 1998.
 69.21     Sec. 58.  [AGENCY EXAMINATION.] 
 69.22     During the interim between the 1997 and 1998 regular 
 69.23  sessions, the governmental operations budget division of the 
 69.24  senate shall conduct a thorough review of the operation and 
 69.25  financing of the following state agencies:  the departments of 
 69.26  administration, finance, and revenue; the board of the arts; and 
 69.27  the Minnesota amateur sports commission.  The agencies shall 
 69.28  make their books, records, documents, accounting procedures, and 
 69.29  practices available for examination by the division and division 
 69.30  staff.  Agency personnel shall assist the division and division 
 69.31  staff in developing a better understanding of how the agencies 
 69.32  operate. 
 69.33     Sec. 59.  [REVIEW OF OBSOLETE RULES AND STUDY OF 
 69.34  OUTCOME-BASED REGULATION.] 
 69.35     The senate committee on governmental operations and 
 69.36  veterans and the house committee on governmental operations, in 
 70.1   cooperation with the affected state agencies, shall review 
 70.2   Minnesota Rules and report to the legislature by January 15, 
 70.3   1998, any rules that the committees find to be obsolete, 
 70.4   unnecessary, or duplicative of other state or federal rules or 
 70.5   statutes.  The report must include any necessary legislation the 
 70.6   committees propose to eliminate the rules or correct the 
 70.7   duplication.  In addition, the committee should complete a study 
 70.8   on whether to require state agencies to implement outcome-based 
 70.9   regulatory programs whenever feasible. 
 70.10     Sec. 60.  [RULE VOID.] 
 70.11     (a) That portion of Minnesota Rules, part 1350.7300, 
 70.12  subpart 2, which requires that commercial office space must be 
 70.13  separated from other areas of the building by floor-to-ceiling 
 70.14  walls is void. 
 70.15     (b) The commissioner of administration shall amend 
 70.16  Minnesota Rules, part 1350.7300, subpart 2, to conform with 
 70.17  paragraph (a).  This amendment may be done in the manner 
 70.18  specified in Minnesota Statutes, section 14.388, clause (3), or 
 70.19  may be done the next time the commissioner proposes other 
 70.20  amendments to rules relating to the state building code or 
 70.21  manufactured homes. 
 70.22     Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 70.23     Appointing authorities in state government shall encourage 
 70.24  each employee to take an unpaid leave of absence for up to 160 
 70.25  hours during the period ending June 30, 1999.  Each appointing 
 70.26  authority approving such a leave shall allow the employee to 
 70.27  continue accruing vacation and sick leave, be eligible for paid 
 70.28  holidays and insurance benefits, accrue seniority, and accrue 
 70.29  service credit in state retirement plans permitting service 
 70.30  credits for authorized leaves of absence as if the employee had 
 70.31  actually been employed during the time of the leave.  If the 
 70.32  leave of absence is for one full pay period or longer, any 
 70.33  holiday pay shall be included in the first payroll warrant after 
 70.34  return from the leave of absence.  The appointing authority 
 70.35  shall attempt to grant requests for unpaid leaves of absence 
 70.36  consistent with the need to continue efficient operation of the 
 71.1   agency.  However, each appointing authority shall retain 
 71.2   discretion to grant or refuse to grant requests for leaves of 
 71.3   absence and to schedule and cancel leaves, subject to applicable 
 71.4   provisions of collective bargaining agreements and compensation 
 71.5   plans.  
 71.6      Sec. 62.  [BOND SALE AUTHORIZATIONS REDUCED.] 
 71.7      The bond sale authorizations in the following laws are 
 71.8   reduced by the amounts indicated: 
 71.9      (1) Laws 1987, chapter 400, section 25, subdivision 1, is 
 71.10  reduced by $295,000.  
 71.11     (2) Laws 1989, chapter 300, article 1, section 23, 
 71.12  subdivision 1, is reduced by $3,335,000. 
 71.13     (3) Laws 1990, chapter 610, article 1, section 30, 
 71.14  subdivision 1, is reduced by $9,280,000. 
 71.15     (4) Laws 1990, chapter 610, article 1, section 30, 
 71.16  subdivision 3, is reduced by $165,000. 
 71.17     (5) Laws 1991, chapter 350, article 1, section 2, 
 71.18  subdivision 1, is reduced by $48,765,000. 
 71.19     (6) Laws 1992, chapter 558, section 28, subdivision 1, is 
 71.20  reduced by $6,590,000. 
 71.21     (7) Laws 1993, chapter 373, section 19, subdivision 1, is 
 71.22  reduced by $10,000. 
 71.23     (8) Laws 1996, chapter 463, section 27, subdivision 1, is 
 71.24  reduced by $37,285,000. 
 71.25     Sec. 63.  [INSTRUCTION TO REVISOR.] 
 71.26     In the next editions of Minnesota Statutes and Minnesota 
 71.27  Rules, the revisor of statutes shall change the term "ethical 
 71.28  practices board" to "campaign finance and public disclosure 
 71.29  board" wherever it appears. 
 71.30     Sec. 64.  [REPEALER.] 
 71.31     (a) Minnesota Statutes 1996, section 138.35, subdivision 3, 
 71.32  is repealed. 
 71.33     (b) Minnesota Statutes 1996, sections 10A.21; and 16B.58, 
 71.34  subdivision 8, are repealed. 
 71.35     Sec. 65.  [EFFECTIVE DATE.] 
 71.36     Sections 1, 12, 14, 16 to 19, 36, 60, and 64, paragraph 
 72.1   (b), are effective the day following final enactment.  Section 
 72.2   20 is effective March 1, 1998.  Section 51, subdivisions 1 to 3, 
 72.3   are effective the day following final enactment.  Section 51, 
 72.4   subdivisions 4 to 8, are effective July 1, 1997. 
 72.5                              ARTICLE 3
 72.6                        INFORMATION TECHNOLOGY 
 72.7      Section 1.  Minnesota Statutes 1996, section 16B.05, 
 72.8   subdivision 2, is amended to read: 
 72.9      Subd. 2.  [FACSIMILE SIGNATURES AND ELECTRONIC APPROVALS.] 
 72.10  When authorized by the commissioner, facsimile signatures and, 
 72.11  electronic approvals, or digital signatures may be used by 
 72.12  personnel of the department of administration in accordance with 
 72.13  the commissioner's delegated authority and instructions,.  
 72.14  Copies of which shall the delegated authority and instructions 
 72.15  must be filed with the commissioner of finance, state treasurer, 
 72.16  and the secretary of state.  A facsimile signature or, 
 72.17  electronic approval, or digital signature, when used in 
 72.18  accordance with the commissioner's delegated authority and 
 72.19  instructions, is as effective as an original signature. 
 72.20     Sec. 2.  [16B.415] [OPERATION OF INFORMATION SYSTEMS.] 
 72.21     The commissioner, through a division of technology 
 72.22  management, is responsible for ongoing operations of state 
 72.23  agency information technology activities.  These include records 
 72.24  management, activities relating to the government data practices 
 72.25  act, operation of MNet, and activities necessary to make state 
 72.26  information systems year 2000 compliant.  
 72.27     Sec. 3.  Minnesota Statutes 1996, section 16B.42, 
 72.28  subdivision 1, is amended to read: 
 72.29     Subdivision 1.  [COMPOSITION.] The intergovernmental 
 72.30  information systems advisory council is composed of (1) two 
 72.31  members from each of the following groups:  counties outside of 
 72.32  the seven-county metropolitan area, cities of the second and 
 72.33  third class outside the metropolitan area, cities of the second 
 72.34  and third class within the metropolitan area, and cities of the 
 72.35  fourth class; (2) one member from each of the following groups:  
 72.36  the metropolitan council, an outstate regional body, counties 
 73.1   within the metropolitan area, cities of the first class, school 
 73.2   districts in the metropolitan area, school districts outside the 
 73.3   metropolitan area, and public libraries; (3) one member each 
 73.4   appointed by the state departments of children, families, and 
 73.5   learning, human services, revenue, and economic security, the 
 73.6   office of strategic and long-range planning, office of 
 73.7   technology, administration, and the legislative auditor; (4) one 
 73.8   member from the office of the state auditor, appointed by the 
 73.9   auditor; (5) the assistant commissioner of administration for 
 73.10  the information policy office; (6) one member appointed by each 
 73.11  of the following organizations:  league of Minnesota cities, 
 73.12  association of Minnesota counties, Minnesota association of 
 73.13  township officers, and Minnesota association of school 
 73.14  administrators; and (7) (6) one member of the house of 
 73.15  representatives appointed by the speaker and one member of the 
 73.16  senate appointed by the subcommittee on committees of the 
 73.17  committee on rules and administration.  The legislative members 
 73.18  appointed under clause (7) (6) are nonvoting members.  The 
 73.19  commissioner of administration shall appoint members under 
 73.20  clauses (1) and (2).  The terms, compensation, and removal of 
 73.21  the appointed members of the advisory council are as provided in 
 73.22  section 15.059, but the council does not expire until June 30, 
 73.23  1997 1999. 
 73.24     Sec. 4.  Minnesota Statutes 1996, section 16B.465, is 
 73.25  amended to read: 
 73.26     16B.465 [STATEWIDE MINNESOTA NETWORK FOR TELECOMMUNICATIONS 
 73.27  ACCESS ROUTING SYSTEM ("MNET").] 
 73.28     Subdivision 1.  [CREATION.] The statewide Minnesota network 
 73.29  for telecommunications access routing system, known as "MNet," 
 73.30  provides voice, data, video, and other telecommunications 
 73.31  transmission services to state agencies; educational 
 73.32  institutions, including public schools as defined in section 
 73.33  120.05, nonpublic, church or religious organization 
 73.34  schools which that provide instruction in compliance with 
 73.35  sections 120.101 to 120.102, and private colleges; public 
 73.36  corporations; and state political subdivisions.  It is not a 
 74.1   telephone company for purposes of chapter 237.  It shall not 
 74.2   resell or sublease any services or facilities to nonpublic 
 74.3   entities except it may serve private schools and colleges.  The 
 74.4   commissioner has the responsibility for planning, development, 
 74.5   and operations of a statewide telecommunications access routing 
 74.6   system MNet in order to provide cost-effective 
 74.7   telecommunications transmission services to system MNet users. 
 74.8      Subd. 2.  [ADVISORY COUNCIL.] The statewide 
 74.9   telecommunications access and routing system MNet is managed by 
 74.10  the commissioner.  Subject to section 15.059, subdivisions 1 to 
 74.11  4, the commissioner shall appoint an advisory council to provide 
 74.12  advice in implementing and operating a statewide 
 74.13  telecommunications access and routing system MNet.  The council 
 74.14  shall represent the users of STARS MNet services and shall 
 74.15  include representatives of higher education, public and private 
 74.16  schools, state agencies, and political subdivisions. 
 74.17     Subd. 3.  [DUTIES.] The commissioner, after consultation 
 74.18  with the council office of technology, shall: 
 74.19     (1) provide voice, data, video, and other 
 74.20  telecommunications transmission services to the state and to 
 74.21  political subdivisions through an account in the 
 74.22  intertechnologies revolving fund; 
 74.23     (2) manage vendor relationships, network function, and 
 74.24  capacity planning in order to be responsive to the needs of the 
 74.25  system users; 
 74.26     (3) set rates and fees for services; 
 74.27     (4) approve contracts relating to the system; 
 74.28     (5) in consultation with the office of technology, develop 
 74.29  the system plan, including plans for the phasing of its 
 74.30  implementation and maintenance of the initial system, and the 
 74.31  annual program and fiscal plans for the system; and 
 74.32     (6) in consultation with the office of technology, develop 
 74.33  a plan for interconnection of the network with private colleges 
 74.34  and public and private schools in the state. 
 74.35     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
 74.36  require the participation of state agencies, the state board of 
 75.1   education, and the board of trustees of the Minnesota state 
 75.2   colleges and universities and may request the participation of 
 75.3   the board of regents of the University of Minnesota, in the 
 75.4   planning and implementation of the network to provide 
 75.5   interconnective technologies.  The commissioner shall establish 
 75.6   reimbursement rates in cooperation with the commissioner of 
 75.7   finance to be billed to participating agencies and educational 
 75.8   institutions sufficient to cover the operating, maintenance, and 
 75.9   administrative costs of the system. 
 75.10     (b) A direct appropriation made to an educational 
 75.11  institution for usage costs associated with the STARS network 
 75.12  MNet must only be used by the educational institution for 
 75.13  payment of usage costs of the network as billed by the 
 75.14  commissioner of administration.  
 75.15     Subd. 6.  [REVOLVING FUND APPROPRIATION.] Money 
 75.16  appropriated for the statewide telecommunications access routing 
 75.17  system MNet and fees for telecommunications services must be 
 75.18  deposited in an account in the intertechnologies revolving 
 75.19  fund.  Money in the account is appropriated annually to the 
 75.20  commissioner to operate telecommunications services. 
 75.21     Subd. 7.  [EXEMPTION.] The system is exempt from the 
 75.22  five-year limitation on contracts set by section 16B.07, 
 75.23  subdivision 2. 
 75.24     Sec. 5.  [16B.466] [ADMINISTRATION OF STATE COMPUTER 
 75.25  FACILITIES.] 
 75.26     Subdivision 1.  [COMMISSIONER'S RESPONSIBILITY.] The 
 75.27  commissioner shall integrate and operate the state's centralized 
 75.28  computer facilities to serve the needs of state government.  The 
 75.29  commissioner shall provide technical assistance to state 
 75.30  agencies in the design, development, and operation of their 
 75.31  computer systems. 
 75.32     Subd. 2.  [JOINT ACTIONS.] The commissioner may, within 
 75.33  available funding, join with the federal government, other 
 75.34  states, local governments, and organizations representing those 
 75.35  groups either jointly or severally in the development and 
 75.36  implementation of systems analysis, information services, and 
 76.1   computerization projects. 
 76.2      Sec. 6.  Minnesota Statutes 1996, section 16B.467, is 
 76.3   amended to read: 
 76.4      16B.467 [ELECTRONIC PERMITTING AND LICENSING CONDUCT OF 
 76.5   STATE BUSINESS.] 
 76.6      The commissioner of administration shall develop and 
 76.7   implement a system under which people seeking state business can 
 76.8   be conducted and permits or licenses that can be issued 
 76.9   immediately upon payment of a fee can obtain these permits and 
 76.10  licenses obtained through electronic access to communication 
 76.11  with the appropriate state agencies.  
 76.12     Sec. 7.  [16E.01] [OFFICE OF TECHNOLOGY.] 
 76.13     Subdivision 1.  [PURPOSE.] The office of technology, 
 76.14  referred to in this chapter as the "office," is an agency in the 
 76.15  executive branch managed by an executive director appointed by 
 76.16  the governor.  The office shall provide leadership and direction 
 76.17  for information and communications technology policy in 
 76.18  Minnesota.  The office shall coordinate strategic investments in 
 76.19  information and communications technology to encourage the 
 76.20  development of a technically literate society and to ensure 
 76.21  sufficient access to and efficient delivery of government 
 76.22  services.  
 76.23     Subd. 2.  [DISCRETIONARY POWERS.] The office may: 
 76.24     (1) enter into contracts for goods or services with public 
 76.25  or private organizations and charge fees for services it 
 76.26  provides; 
 76.27     (2) apply for, receive, and expend money from public 
 76.28  agencies; 
 76.29     (3) apply for, accept, and disburse grants and other aids 
 76.30  from the federal government and other public or private sources; 
 76.31     (4) enter into contracts with agencies of the federal 
 76.32  government, local governmental units, the University of 
 76.33  Minnesota and other educational institutions, and private 
 76.34  persons and other nongovernmental organizations as necessary to 
 76.35  perform its statutory duties; 
 76.36     (5) appoint committees and task forces of not more than two 
 77.1   years' duration to assist the office in carrying out its duties; 
 77.2      (6) sponsor and conduct conferences and studies, collect 
 77.3   and disseminate information, and issue reports relating to 
 77.4   information and communications technology issues; 
 77.5      (7) participate in the activities of standards bodies and 
 77.6   other appropriate conferences related to information and 
 77.7   communications technology issues; 
 77.8      (8) review the technology infrastructure of regions of the 
 77.9   state and cooperate with and make recommendations to the 
 77.10  governor, legislature, state agencies, local governments, local 
 77.11  technology development agencies, the federal government, private 
 77.12  businesses, and individuals for the realization of information 
 77.13  and communications technology infrastructure development 
 77.14  potential; 
 77.15     (9) sponsor, support, and facilitate innovative and 
 77.16  collaborative economic and community development and government 
 77.17  services projects, including technology initiatives related to 
 77.18  culture and the arts, with public and private organizations; and 
 77.19     (10) review and recommend alternative sourcing strategies 
 77.20  for state information and communications systems. 
 77.21     Subd. 3.  [DUTIES.] The office shall: 
 77.22     (1) coordinate the efficient and effective use of available 
 77.23  federal, state, local, and private resources to develop 
 77.24  statewide information and communications technology and its 
 77.25  infrastructure; 
 77.26     (2) review state agency and intergovernmental information 
 77.27  and communications systems development efforts involving state 
 77.28  or intergovernmental funding, provide information to the 
 77.29  legislature in accordance with section 16A.11 regarding projects 
 77.30  reviewed, and recommend projects for inclusion in the 
 77.31  information technology budget under section 16A.11; 
 77.32     (3) encourage cooperation and collaboration among state and 
 77.33  local governments in developing intergovernmental communication 
 77.34  and information systems, and define the structure and 
 77.35  responsibilities of the information policy council; 
 77.36     (4) cooperate and collaborate with the legislative and 
 78.1   judicial branches in the development of information and 
 78.2   communications systems in those branches; 
 78.3      (5) continue the development of North Star, the state's 
 78.4   official comprehensive online service and information 
 78.5   initiative; 
 78.6      (6) promote and collaborate with the state's agencies in 
 78.7   the state's transition to an effectively competitive 
 78.8   telecommunications market; 
 78.9      (7) collaborate with entities carrying out education and 
 78.10  lifelong learning initiatives to assist Minnesotans in 
 78.11  developing technical literacy and obtaining access to ongoing 
 78.12  learning resources; 
 78.13     (8) promote and coordinate public information access and 
 78.14  network initiatives, consistent with chapter 13, to connect 
 78.15  Minnesota's citizens and communities to each other, to their 
 78.16  governments, and to the world; 
 78.17     (9) promote and coordinate electronic commerce initiatives 
 78.18  to ensure that Minnesota businesses and citizens can 
 78.19  successfully compete in the global economy; 
 78.20     (10) promote and coordinate the regular and periodic 
 78.21  reinvestment in the core information and communications 
 78.22  technology infrastructure so that state and local government 
 78.23  agencies can effectively and efficiently serve their customers; 
 78.24     (11) facilitate the cooperative development of standards 
 78.25  for information systems, electronic data practices and privacy, 
 78.26  and electronic commerce among international, national, state, 
 78.27  and local public and private organizations; and 
 78.28     (12) work with others to avoid unnecessary duplication of 
 78.29  existing services or activities provided by other public and 
 78.30  private organizations while building on the existing 
 78.31  governmental, educational, business, health care, and economic 
 78.32  development infrastructures. 
 78.33     Sec. 8.  [16E.02] [OFFICE OF TECHNOLOGY STRUCTURE AND 
 78.34  PERSONNEL.] 
 78.35     Subdivision 1.  [OFFICE MANAGEMENT AND STRUCTURE.] The 
 78.36  executive director is the state's chief information officer and 
 79.1   technology advisor to the governor.  The salary of the executive 
 79.2   director may not exceed 85 percent of the governor's salary.  
 79.3   The executive director may employ a deputy director, assistant 
 79.4   directors, and other employees that the executive director may 
 79.5   consider necessary.  The executive director and the deputy and 
 79.6   assistant directors and one confidential secretary serve in the 
 79.7   unclassified service.  The staff of the office must include 
 79.8   individuals knowledgeable in information and communications 
 79.9   technology.  The executive director may appoint other personnel 
 79.10  as necessary to operate the office of technology in accordance 
 79.11  with chapter 43A. 
 79.12     Subd. 2.  [INTERGOVERNMENTAL PARTICIPATION.] The executive 
 79.13  director or the director's designee shall serve as a member of 
 79.14  the Minnesota education telecommunications council, the 
 79.15  geographic information systems council, the library planning 
 79.16  task force, or their respective successor organizations, and as 
 79.17  a member of Minnesota Technology, Inc., the Minnesota health 
 79.18  data institute as a nonvoting member, and the Minnesota world 
 79.19  trade center corporation. 
 79.20     Sec. 9.  [16E.03] [ADMINISTRATION OF STATE INFORMATION AND 
 79.21  COMMUNICATIONS SYSTEMS.] 
 79.22     Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
 79.23  16E.03 to 16E.05, the following terms have the meanings given 
 79.24  them. 
 79.25     (a) "Information and communications technology activity" 
 79.26  means the development or acquisition of information and 
 79.27  communications technology devices and systems, but does not 
 79.28  include MNet or its contractors. 
 79.29     (b) "Data processing device or system" means equipment or 
 79.30  computer programs, including computer hardware, firmware, 
 79.31  software, and communication protocols, used in connection with 
 79.32  the processing of information through electronic data processing 
 79.33  means, and includes data communication devices used in 
 79.34  connection with computer facilities for the transmission of data.
 79.35     (c) "State agency" means an agency in the executive branch 
 79.36  of state government and includes state colleges and universities 
 80.1   and the Minnesota higher education services office, 
 80.2   notwithstanding any other law enacted at the 1997 legislative 
 80.3   session. 
 80.4      Subd. 2.  [EXECUTIVE DIRECTOR'S RESPONSIBILITY.] The 
 80.5   executive director shall coordinate the state's information and 
 80.6   communications technology systems to serve the needs of the 
 80.7   state government.  The executive director shall: 
 80.8      (1) coordinate the design of a master plan for information 
 80.9   and communications technology systems in the state and its 
 80.10  political subdivisions and shall report on the plan to the 
 80.11  governor and legislature at the beginning of each regular 
 80.12  session; 
 80.13     (2) coordinate all information and communications 
 80.14  technology plans and contracts and oversee the state's 
 80.15  information and communications systems; 
 80.16     (3) establish standards for information and communications 
 80.17  systems that encourage competition and support open systems 
 80.18  environments and that are compatible with national and 
 80.19  international standards; and 
 80.20     (4) maintain a library of systems and programs developed by 
 80.21  the state and its political subdivisions for use by agencies of 
 80.22  government. 
 80.23     Subd. 3.  [EVALUATION AND APPROVAL.] A state agency may not 
 80.24  undertake an information and communications technology activity 
 80.25  until it has been evaluated according to the procedures 
 80.26  developed under subdivision 4.  The governor or governor's 
 80.27  designee shall give written approval of the proposed activity.  
 80.28  If the proposed activity is not approved, the commissioner of 
 80.29  finance shall cancel the unencumbered balance of any 
 80.30  appropriation allotted for the activity.  This subdivision does 
 80.31  not apply to acquisitions or development of information and 
 80.32  communications systems that have anticipated total cost of less 
 80.33  than $100,000. 
 80.34     Subd. 4.  [EVALUATION PROCEDURE.] The executive director 
 80.35  shall establish and, as necessary, update and modify procedures 
 80.36  to evaluate information and communications activities proposed 
 81.1   by state agencies.  The evaluation procedure must assess the 
 81.2   necessity, design and plan for development, ability to meet user 
 81.3   requirements, feasibility, and flexibility of the proposed data 
 81.4   processing device or system, its relationship to other state 
 81.5   data processing devices or systems, and its costs and benefits 
 81.6   when considered by itself and when compared with other options. 
 81.7      Subd. 5.  [REPORT TO LEGISLATURE.] The executive director 
 81.8   shall submit to the legislature, in the information technology 
 81.9   budget required by section 16A.11, a concise narrative 
 81.10  explanation of the activity and a request for any additional 
 81.11  appropriation necessary to complete the activity. 
 81.12     Subd. 6.  [SYSTEM DEVELOPMENT METHODS.] The executive 
 81.13  director shall establish and, as necessary, update and modify 
 81.14  methods for developing information and communications systems 
 81.15  appropriate to the specific needs of individual state agencies.  
 81.16  The development methods shall be used to define the design, 
 81.17  programming, and implementation of systems.  The development 
 81.18  methods must also enable and require a data processing system to 
 81.19  be defined in terms of its computer programs, input 
 81.20  requirements, output formats, administrative procedures, and 
 81.21  processing frequencies. 
 81.22     Subd. 7.  [DATA SECURITY SYSTEMS.] In consultation with the 
 81.23  attorney general and appropriate agency heads, the executive 
 81.24  director shall develop data security policies, guidelines, and 
 81.25  standards, and the commissioner of administration shall install 
 81.26  and administer state data security systems on the state's 
 81.27  centralized computer facility consistent with these policies, 
 81.28  guidelines, standards, and state law to ensure the integrity of 
 81.29  computer-based and other data and to ensure applicable 
 81.30  limitations on access to data, consistent with the public's 
 81.31  right to know as defined in chapter 13.  Each department or 
 81.32  agency head is responsible for the security of the department's 
 81.33  or agency's data. 
 81.34     Subd. 8.  [JOINT ACTIONS.] The executive director may join 
 81.35  with the federal government, other states, local governments, 
 81.36  and organizations representing those groups either jointly or 
 82.1   severally in the development and implementation of systems 
 82.2   analysis, information services, and computerization projects. 
 82.3      Sec. 10.  [16E.04] [INFORMATION AND COMMUNICATIONS 
 82.4   TECHNOLOGY POLICY.] 
 82.5      Subdivision 1.  [DEVELOPMENT.] The office shall coordinate 
 82.6   with state agencies in developing and establishing policies and 
 82.7   standards for state agencies to follow in developing and 
 82.8   purchasing information and communications systems and training 
 82.9   appropriate persons in their use.  The office shall develop, 
 82.10  promote, and coordinate state technology, architecture, 
 82.11  standards and guidelines, information needs analysis techniques, 
 82.12  contracts for the purchase of equipment and services, and 
 82.13  training of state agency personnel on these issues. 
 82.14     Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
 82.15  activities prescribed by law, the office shall carry out the 
 82.16  duties set out in this subdivision. 
 82.17     (b) The office shall develop and establish a state 
 82.18  information architecture to ensure that further state agency 
 82.19  development and purchase of information and communications 
 82.20  systems, equipment, and services is designed to ensure that 
 82.21  individual agency information systems complement and do not 
 82.22  needlessly duplicate or conflict with the systems of other 
 82.23  agencies.  When state agencies have need for the same or similar 
 82.24  public data, the executive director, in coordination with the 
 82.25  affected agencies, shall promote the most efficient and 
 82.26  cost-effective method of producing and storing data for or 
 82.27  sharing data between those agencies.  The development of this 
 82.28  information architecture must include the establishment of 
 82.29  standards and guidelines to be followed by state agencies. 
 82.30     (c) The office shall assist state agencies in the planning 
 82.31  and management of information systems so that an individual 
 82.32  information system reflects and supports the state agency's 
 82.33  mission and the state's requirements and functions. 
 82.34     (d) The office shall review agency requests for legislative 
 82.35  appropriations for the development or purchase of information 
 82.36  systems equipment or software. 
 83.1      (e) The office shall review major purchases of information 
 83.2   systems equipment to: 
 83.3      (1) ensure that the equipment follows the standards and 
 83.4   guidelines of the state information architecture; 
 83.5      (2) ensure that the equipment is consistent with the 
 83.6   information management principles adopted by the information 
 83.7   policy council; 
 83.8      (3) evaluate whether the agency's proposed purchase 
 83.9   reflects a cost-effective policy regarding volume purchasing; 
 83.10  and 
 83.11     (4) ensure that the equipment is consistent with other 
 83.12  systems in other state agencies so that data can be shared among 
 83.13  agencies, unless the office determines that the agency 
 83.14  purchasing the equipment has special needs justifying the 
 83.15  inconsistency. 
 83.16     (f) The office shall review the operation of information 
 83.17  systems by state agencies and provide advice and assistance to 
 83.18  ensure that these systems are operated efficiently and 
 83.19  continually meet the standards and guidelines established by the 
 83.20  office.  The standards and guidelines must emphasize uniformity 
 83.21  that encourages information interchange, open systems 
 83.22  environments, and portability of information whenever 
 83.23  practicable and consistent with an agency's authority and 
 83.24  chapter 13.  The office, in consultation with the 
 83.25  intergovernmental information systems advisory council and the 
 83.26  legislative reference library, shall recommend specific 
 83.27  standards and guidelines for each state agency within a time 
 83.28  period fixed by the office in regard to the following: 
 83.29     (1) establishing methods and systems directed at reducing 
 83.30  and ultimately eliminating redundant storage of data; and 
 83.31     (2) establishing information sales systems that utilize 
 83.32  licensing and royalty agreements to the greatest extent 
 83.33  possible, together with procedures for agency denial of requests 
 83.34  for licenses or royalty agreements by commercial users or 
 83.35  resellers of the information.  Section 3.751 does not apply to 
 83.36  those licensing and royalty agreements, and the agreements must 
 84.1   include provisions that section 3.751 does not apply and that 
 84.2   the state is immune from liability under the agreement. 
 84.3      (g) The office shall conduct a comprehensive review at 
 84.4   least every three years of the information systems investments 
 84.5   that have been made by state agencies and higher education 
 84.6   institutions.  The review must include recommendations on any 
 84.7   information systems applications that could be provided in a 
 84.8   more cost-beneficial manner by an outside source.  The office 
 84.9   must report the results of its review to the legislature and the 
 84.10  governor. 
 84.11     (h) The office shall report to the legislature by January 
 84.12  15 of each year on progress in implementing paragraph (f), 
 84.13  clauses (1) and (2). 
 84.14     Sec. 11.  [16E.05] [GOVERNMENT INFORMATION ACCESS.] 
 84.15     Subdivision 1.  [DUTIES.] The office, in consultation with 
 84.16  interested persons, shall: 
 84.17     (1) coordinate statewide efforts by units of state and 
 84.18  local government to plan for and develop a system for providing 
 84.19  access to government services; 
 84.20     (2) make recommendations to facilitate coordination and 
 84.21  assistance of demonstration projects; and 
 84.22     (3) explore ways and means to improve citizen and business 
 84.23  access to public services, including implementation of 
 84.24  technological improvements. 
 84.25     Subd. 2.  [APPROVAL OF STATE AGENCY INITIATIVES.] A state 
 84.26  agency shall coordinate with the office when implementing a new 
 84.27  initiative for providing electronic access to state government 
 84.28  information. 
 84.29     Subd. 3.  [CAPITAL INVESTMENT.] No state agency may propose 
 84.30  or implement a capital investment plan for a state office 
 84.31  building unless: 
 84.32     (1) the agency has developed a plan for increasing 
 84.33  telecommuting by employees who would normally work in the 
 84.34  building, or the agency has prepared a statement describing why 
 84.35  such a plan is not practicable; and 
 84.36     (2) the plan or statement has been reviewed by the office. 
 85.1      Sec. 12.  [16E.06] [DATA PRIVACY.] 
 85.2      The following data submitted to the office by businesses 
 85.3   are private data on individuals or nonpublic data: financial 
 85.4   statements, business plans, income and expense projections, 
 85.5   customer lists, and market and feasibility studies not paid for 
 85.6   with public funds. 
 85.7      Sec. 13.  [16E.07] [NORTH STAR.] 
 85.8      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 85.9   subdivision apply to this section. 
 85.10     (b) [CORE SERVICES.] "Core services" means information 
 85.11  system applications required to provide secure information 
 85.12  services and online applications and content to the public from 
 85.13  government units.  Online applications may include, but are not 
 85.14  limited to: 
 85.15     (1) standardized public directory services and standardized 
 85.16  content services; 
 85.17     (2) online search systems; 
 85.18     (3) general technical services to support government unit 
 85.19  online services; 
 85.20     (4) electronic conferencing and communication services; 
 85.21     (5) secure electronic transaction services; 
 85.22     (6) digital audio, video, and multimedia services; and 
 85.23     (7) government intranet content and service development. 
 85.24     (c) [GOVERNMENT UNIT.] "Government unit" means a state 
 85.25  department, agency, commission, council, board, task force, or 
 85.26  committee; a constitutional office; a court entity; the 
 85.27  Minnesota state colleges and universities; a county, statutory 
 85.28  or home rule charter city, or town; a school district; a special 
 85.29  district; or any other board, commission, district, or authority 
 85.30  created under law, local ordinance, or charter provision. 
 85.31     Subd. 2.  [ESTABLISHED.] The office shall establish "North 
 85.32  Star" as the state's comprehensive government online information 
 85.33  service.  North Star is the state's governmental framework for 
 85.34  coordinating and collaborating in providing online government 
 85.35  information and services.  Government agencies that provide 
 85.36  electronic access to government information are requested to 
 86.1   make available to North Star their most frequently requested 
 86.2   public data.  
 86.3      Subd. 3.  [ACCESS TO DATA.] The legislature determines that 
 86.4   the greatest possible access to certain government information 
 86.5   and data is essential to allow citizens to participate fully in 
 86.6   a democratic system of government.  Certain information and 
 86.7   data, including, but not limited to the following, must be 
 86.8   provided free of charge or for a nominal cost associated with 
 86.9   reproducing the information or data: 
 86.10     (1) directories of government services and institutions; 
 86.11     (2) legislative and rulemaking information, including 
 86.12  public information newsletters, bill text and summaries, bill 
 86.13  status information, rule status information, meeting schedules, 
 86.14  and the text of statutes and rules; 
 86.15     (3) supreme court and court of appeals opinions and general 
 86.16  judicial information; 
 86.17     (4) opinions of the attorney general; 
 86.18     (5) ethical practices board and election information; 
 86.19     (6) public budget information; 
 86.20     (7) local government documents, such as codes, ordinances, 
 86.21  minutes, meeting schedules, and other notices in the public 
 86.22  interest; 
 86.23     (8) official documents, releases, speeches, and other 
 86.24  public information issued by government agencies; and 
 86.25     (9) the text of other government documents and publications 
 86.26  that government agencies determine are important to public 
 86.27  understanding of government activities. 
 86.28     Subd. 4.  [STAFF.] The executive director of the office 
 86.29  shall appoint the manager of the North Star online information 
 86.30  service and hire staff to carry out the responsibilities of the 
 86.31  service. 
 86.32     Subd. 5.  [PARTICIPATION; CONSULTATION; GUIDELINES.] The 
 86.33  North Star staff shall consult with governmental and 
 86.34  nongovernmental organizations to establish rules for 
 86.35  participation in the North Star service.  Government units 
 86.36  planning, developing, or providing publicly accessible online 
 87.1   services shall provide access through and collaborate with North 
 87.2   Star and formally register with the office.  The University of 
 87.3   Minnesota is requested to establish online connections and 
 87.4   collaborate with North Star.  Units of the legislature shall 
 87.5   make their services available through North Star.  Government 
 87.6   units may be required to submit standardized directory and 
 87.7   general content for core services but are not required to 
 87.8   purchase core services from North Star.  North Star shall 
 87.9   promote broad public access to the sources of online information 
 87.10  or services through multiple technologies.  
 87.11     Subd. 6.  [FEES.] The office shall establish fees for 
 87.12  technical and transaction services for government units through 
 87.13  North Star.  Fees must be credited to the North Star account. 
 87.14  The office may not charge a fee for viewing or inspecting data 
 87.15  made available through North Star or linked facilities, unless 
 87.16  specifically authorized by law. 
 87.17     Subd. 7.  [NORTH STAR ACCOUNT.] The North Star account is 
 87.18  created in the special revenue fund.  The account consists of: 
 87.19     (1) grants received from nonstate entities; 
 87.20     (2) fees and charges collected by the office; 
 87.21     (3) gifts, donations, and bequests made to the office; and 
 87.22     (4) other money credited to the account by law. 
 87.23     Money in the account is appropriated to the office to be 
 87.24  used to continue the development of the North Star project. 
 87.25     Subd. 8.  [SECURE TRANSACTION SYSTEM.] The office shall 
 87.26  plan and develop a secure transaction system to support delivery 
 87.27  of government services electronically. 
 87.28     Subd. 9.  [AGGREGATION OF SERVICE DEMAND.] The office shall 
 87.29  identify opportunities to aggregate demand for technical 
 87.30  services required by government units for online activities and 
 87.31  may contract with governmental or nongovernmental entities to 
 87.32  provide services.  These contracts are not subject to the 
 87.33  requirements of chapter 16B, except sections 16B.167, 16B.17, 
 87.34  and 16B.175. 
 87.35     Subd. 10.  [OUTREACH.] The office may promote the 
 87.36  availability of government online information and services 
 88.1   through public outreach and education.  Public network expansion 
 88.2   in communities through libraries, schools, colleges, local 
 88.3   government, and other community access points must include 
 88.4   access to North Star.  North Star may make materials available 
 88.5   to those public sites to promote awareness of the service. 
 88.6      Subd. 11.  [ADVANCED DEVELOPMENT COLLABORATION.] The office 
 88.7   shall identify information technology services with broad public 
 88.8   impact and advanced development requirements.  Those services 
 88.9   shall assist in the development of and utilization of core 
 88.10  services to the greatest extent possible where appropriate, cost 
 88.11  effective, and technically feasible.  This includes, but is not 
 88.12  limited to, higher education, statewide online library, economic 
 88.13  and community development, and K-12 educational technology 
 88.14  services.  North Star shall participate in electronic commerce 
 88.15  research and development initiatives with the University of 
 88.16  Minnesota and other partners.  The statewide online library 
 88.17  service shall consult, collaborate, and work with North Star to 
 88.18  ensure development of proposals for advanced government 
 88.19  information locator and electronic depository and archive 
 88.20  systems. 
 88.21     Sec. 14.  [16E.08] [BUSINESS LICENSE INFORMATION.] 
 88.22     The office shall coordinate the design, establishment, 
 88.23  implementation, and maintenance of an electronic system to allow 
 88.24  the public to retrieve by computer information prepared by the 
 88.25  department of trade and economic development bureau of business 
 88.26  licenses on licenses and their requirements.  The office shall 
 88.27  establish the format and standards for retrieval consistent with 
 88.28  state information and data interchange policies.  The office 
 88.29  shall integrate the system with the North Star online 
 88.30  information system.  The office shall work in collaboration with 
 88.31  the department of trade and economic development bureau of 
 88.32  business licenses.  The bureau is responsible for creating and 
 88.33  operating the system.  
 88.34     Sec. 15.  [16E.11] [TRADE POINT.] 
 88.35     The office shall cooperate with the United Nations, the 
 88.36  Minnesota world trade center corporation, the commissioner of 
 89.1   trade and economic development, the University of Minnesota, and 
 89.2   private businesses to expand international trading opportunities 
 89.3   for small and medium sized businesses through the use of 
 89.4   electronic commerce technologies and participation in the global 
 89.5   trade point network.  The office shall support research and 
 89.6   development of secured trading technologies by the commissioner 
 89.7   of trade and economic development, the University of Minnesota, 
 89.8   and others.  The office, in cooperation with the commissioner of 
 89.9   trade and economic development, shall coordinate expansion of 
 89.10  membership in a trade point association.  The office shall 
 89.11  provide training and outreach and support training and outreach 
 89.12  provided by the commissioner of trade and economic development 
 89.13  and the University of Minnesota.  These agencies shall cooperate 
 89.14  in the identification and development of electronic trading 
 89.15  centers in multiple regions of this state. 
 89.16     Sec. 16.  [16E.12] [INTERNET CENTER.] 
 89.17     Subdivision 1.  [CREATION.] The office shall create the 
 89.18  Internet center, centrally located within the state, to 
 89.19  collaborate with the North Star online information service, 
 89.20  public and private partners, and with existing or emerging 
 89.21  technology and community development efforts. 
 89.22     Subd. 2.  [COMMUNITY ASSISTANCE.] The center shall assist 
 89.23  communities and regions in comprehensive information and 
 89.24  telecommunications technology (IT) community planning, demand 
 89.25  aggregation, design, and implementation.  It shall maintain an 
 89.26  interactive database of community and business-related IT 
 89.27  experience, showcase successful models of community and business 
 89.28  IT integration, coordinate statewide IT community development 
 89.29  technical assistance, and act as a clearinghouse for 
 89.30  applications and education in the uses of IT. 
 89.31     Subd. 3.  [TELETERNS; RESOURCE TEAMS.] A "teletern" is a 
 89.32  student enrolled in a higher education program who has 
 89.33  information and telecommunications technology skills.  The 
 89.34  center shall coordinate the training and placement of teleterns 
 89.35  who have IT experience and community development process skills, 
 89.36  regional IT community development coordinators, and community IT 
 90.1   resource teams to work in partnership with communities as they 
 90.2   plan for and implement comprehensive IT resource development 
 90.3   efforts.  This includes the aggregation of demand for IT to help 
 90.4   facilitate the transition into a market-based, competitive IT 
 90.5   environment and the use of IT tools to enhance access to 
 90.6   community services, improve the business climate, and strengthen 
 90.7   community ties. 
 90.8      Subd. 4.  [COMMUNITY-BASED DEVELOPMENT PARTNERS.] The 
 90.9   center and its community-based development functions shall 
 90.10  coordinate or partner, when possible, with Minnesota learning 
 90.11  community initiatives, particularly for community-based 
 90.12  technology learning centers; Minnesota library technology 
 90.13  investments; trade point Minnesota, the University of Minnesota 
 90.14  secure electronic authentication link (SEAL) laboratory and 
 90.15  electronic trading centers; the Small Business Administration 
 90.16  business information center; Minnesota technology centers; the 
 90.17  Minnesota extension service Access Minnesota sites; and the 
 90.18  state's telecommunications collaboration project, among others. 
 90.19     Sec. 17.  [16E.13] [COMMUNITY TECHNOLOGY RESOURCE 
 90.20  DEVELOPMENT.] 
 90.21     Subdivision 1.  [CREATION AND PURPOSE.] The information and 
 90.22  telecommunications technology (IT) community resource 
 90.23  development initiative is created under the oversight 
 90.24  jurisdiction of the office of technology to build the capacity 
 90.25  of citizens, businesses, communities, and regions of the state 
 90.26  to fully realize the benefits of IT for sustainable community 
 90.27  and economic development and to help facilitate the transition 
 90.28  into the market-based, competitive IT environment. 
 90.29     Subd. 2.  [DUTIES GENERALLY.] Through this initiative, the 
 90.30  office shall: 
 90.31     (1) collect, organize, and distribute information regarding 
 90.32  the benefits, applications, and effective uses of IT; 
 90.33     (2) promote community-based telecommunications planning and 
 90.34  development and the use of community-oriented electronic 
 90.35  communications and information applications in health care, 
 90.36  education, and commerce; 
 91.1      (3) award grants for community-based development seed funds 
 91.2   to encourage public-private partnerships that foster effective 
 91.3   IT use and IT integration activities in the community; and 
 91.4      (4) facilitate the aggregation of demand for IT on a 
 91.5   comprehensive private, nonprofit, and public sector shared basis 
 91.6   in communities. 
 91.7      Subd. 3.  [ASSISTANCE AND FUNDING; GENERAL PRINCIPLES.] 
 91.8   Community technical assistance and development seed funding for 
 91.9   aggregation of demand and community IT planning provided through 
 91.10  the IT community resource development initiative is contingent 
 91.11  upon the following general principles: 
 91.12     (1) that communities and regions show evidence of, or 
 91.13  intent to do, cooperative funding and planning between sectors 
 91.14  including, but not limited to, private sector providers, public 
 91.15  sector technology investments such as MNet, library systems, 
 91.16  health care providers, businesses, schools and other educational 
 91.17  institutions, and the nonprofit sector; and 
 91.18     (2) that communities and regions agree to form local and 
 91.19  regional IT coordination committees or modify similar, existing 
 91.20  committees to be more inclusive of other sectors and undertake 
 91.21  comprehensive planning across those sectors to leverage public 
 91.22  and private IT investment to the maximum benefit of all citizens.
 91.23     Sec. 18.  Minnesota Statutes 1996, section 403.02, 
 91.24  subdivision 2, is amended to read: 
 91.25     Subd. 2.  [METROPOLITAN AREA.] "Metropolitan area" means 
 91.26  the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
 91.27  and Washington metropolitan area as defined in section 473.121, 
 91.28  subdivision 2. 
 91.29     Sec. 19.  Minnesota Statutes 1996, section 403.02, is 
 91.30  amended by adding a subdivision to read: 
 91.31     Subd. 10.  [COMMISSIONER.] "Commissioner" means the 
 91.32  commissioner of administration. 
 91.33     Sec. 20.  Minnesota Statutes 1996, section 403.08, is 
 91.34  amended by adding a subdivision to read: 
 91.35     Subd. 7.  [CELLULAR AND OTHER NONWIRE PROVIDERS.] (a) Each 
 91.36  cellular and other wireless access service provider shall 
 92.1   cooperate in planning and implementing integration with enhanced 
 92.2   911 systems operating in their service territories to meet 
 92.3   federal communications commission enhanced 911 standards.  By 
 92.4   August 1, 1997, each 911 emergency telephone service provider 
 92.5   operating enhanced 911 systems, in cooperation with each 
 92.6   involved cellular or other wireless access service provider, 
 92.7   shall develop and provide to the commissioner good-faith 
 92.8   estimates of installation and recurring expenses to integrate 
 92.9   cellular 911 service into the enhanced 911 networks to meet 
 92.10  federal communications commission phase one wireless enhanced 
 92.11  911 standards.  The commissioner shall coordinate with counties 
 92.12  and affected public safety agency representatives in developing 
 92.13  a statewide design and plan for implementation.  
 92.14     (b) Planning shall be completed by October 1, 1997, for the 
 92.15  metropolitan area and shall be completed by December 1, 1997, 
 92.16  for the areas outside of the metropolitan area.  
 92.17     (c) Planning considerations must include cost, degree of 
 92.18  integration into existing 911 systems, the retention of existing 
 92.19  911 infrastructure, and the potential implications of phase 2 of 
 92.20  the federal communications commission wireless enhanced 911 
 92.21  standards.  
 92.22     (d) Counties shall incorporate the statewide design when 
 92.23  modifying county 911 plans to provide for integrating wireless 
 92.24  911 service into existing county 911 systems.  The commissioner 
 92.25  shall contract with the involved wireless service providers and 
 92.26  911 service providers to integrate cellular and other wireless 
 92.27  services into existing 911 systems where feasible. 
 92.28     Sec. 21.  Minnesota Statutes 1996, section 403.11, 
 92.29  subdivision 2, is amended to read: 
 92.30     Subd. 2.  [MODIFICATION COSTS.] (a) The costs of a public 
 92.31  utility incurred in the modification of central office switching 
 92.32  equipment for minimum 911 service shall be paid from the general 
 92.33  fund of the state treasury by appropriations for that purpose. 
 92.34     (b) The installation and recurring charges for integrating 
 92.35  cellular and other wireless access services 911 calls into 
 92.36  enhanced 911 systems must be paid by the commissioner if the 911 
 93.1   service provider is included in the statewide design plan and 
 93.2   the charges have been certified and approved under subdivision 
 93.3   3, or the wireless access service provider has completed a 
 93.4   contract for service with the commissioner, and charges are 
 93.5   considered reasonable and accurate by the commissioner.  Charges 
 93.6   payable to wireless access service providers are not subject to 
 93.7   the provisions of subdivision 3. 
 93.8      Sec. 22.  Minnesota Statutes 1996, section 403.113, 
 93.9   subdivision 1, is amended to read: 
 93.10     Subdivision 1.  [FEE.] (a) In addition to the actual fee 
 93.11  assessed under section 403.11, each customer receiving local 
 93.12  telephone service, excluding including cellular or other nonwire 
 93.13  service, is assessed a fee to fund implementation and 
 93.14  maintenance of enhanced 911 service, including acquisition of 
 93.15  necessary equipment and the costs of the department of 
 93.16  administration commissioner to administer the program.  The 
 93.17  enhanced fee collected from cellular or other nonwire service 
 93.18  customers must be collected effective in July 1997 billings.  
 93.19  The actual fee assessed under section 403.11 and the enhanced 
 93.20  911 service fee must be collected as one amount and may not 
 93.21  exceed the amount specified in section 403.11, subdivision 1, 
 93.22  paragraph (b). 
 93.23     (b) The enhanced 911 service fee must be collected and 
 93.24  deposited in the same manner as the fee in section 403.11 and 
 93.25  used solely for the purposes of paragraph (a) and subdivision 3. 
 93.26     (c) The commissioner of the department of administration, 
 93.27  in consultation with counties and 911 system users, shall 
 93.28  determine the amount of the enhanced 911 service fee and inform 
 93.29  telephone companies or communications carriers that provide 
 93.30  service capable of originating a 911 emergency telephone call of 
 93.31  the total amount of the 911 service fees in the same manner as 
 93.32  provided in section 403.11. 
 93.33     Sec. 23.  Minnesota Statutes 1996, section 403.113, 
 93.34  subdivision 2, is amended to read: 
 93.35     Subd. 2.  [DISTRIBUTION OF MONEY.] (a) After payment of the 
 93.36  costs of the department of administration to administer the 
 94.1   program, the commissioner shall distribute the money collected 
 94.2   under this section as follows: 
 94.3      (1) one-half of the amount equally to all qualified 
 94.4   counties, and after October 1, 1997, to all qualified counties, 
 94.5   existing ten public safety answering points operated by the 
 94.6   Minnesota state patrol, and each governmental entity operating 
 94.7   the individual public safety answering points serving the 
 94.8   metropolitan airports commission, Red Lake Indian Reservation, 
 94.9   and the University of Minnesota police department; and 
 94.10     (2) the remaining one-half to qualified counties and cities 
 94.11  with existing 911 systems based on each county's or city's 
 94.12  percentage of the total population of qualified counties and 
 94.13  cities.  The population of a qualified city with an existing 
 94.14  system must be deducted from its county's population when 
 94.15  calculating the county's share under this clause if the city 
 94.16  seeks direct distribution of its share. 
 94.17     (b) A county's share under subdivision 1 must be shared pro 
 94.18  rata between the county and existing city systems in the 
 94.19  county.  A county or city or other governmental entity as 
 94.20  described in paragraph (a), clause (1), shall deposit money 
 94.21  received under this subdivision in an interest-bearing fund or 
 94.22  account separate from the county's or city's governmental 
 94.23  entity's general fund and may use money in the fund or account 
 94.24  only for the purposes specified in subdivision 3. 
 94.25     (c) For the purposes of this subdivision, a county or city 
 94.26  is qualified to share in the distribution of money for enhanced 
 94.27  911 service if the county auditor certifies to the commissioner 
 94.28  of administration the amount of the county's or city's levy for 
 94.29  the cost of providing enhanced 911 service for taxes payable in 
 94.30  the year in which money for enhanced 911 service will be 
 94.31  distributed.  The commissioner may not distribute money to a 
 94.32  county or city in an amount greater than twice the amount of the 
 94.33  county's or city's certified levy.  A county or city or other 
 94.34  governmental entity as described in paragraph (a), clause (1), 
 94.35  is not qualified to share in the distribution of money for 
 94.36  enhanced 911 service if, in addition to the levy required under 
 95.1   this paragraph, it has not implemented enhanced 911 service 
 95.2   before December 31, 1998. 
 95.3      (d) For the purposes of this subdivision, "existing city 
 95.4   system" means a city 911 system that provides at least basic 911 
 95.5   service and that was implemented on or before April 1, 1993.  
 95.6      Sec. 24.  Minnesota Statutes 1996, section 403.113, 
 95.7   subdivision 3, is amended to read: 
 95.8      Subd. 3.  [LOCAL EXPENDITURES.] (a) Money distributed to 
 95.9   counties or an existing city system under subdivision 2 for 
 95.10  enhanced 911 service may be spent on enhanced 911 system costs 
 95.11  for the purposes stated in subdivision 1, paragraph (a).  In 
 95.12  addition, money may be spent to lease, purchase, lease-purchase, 
 95.13  or maintain enhanced 911 equipment, including telephone 
 95.14  equipment; recording equipment; computer hardware; computer 
 95.15  software for database provisioning, addressing, mapping, and any 
 95.16  other software necessary for automatic location identification 
 95.17  or local location identification; trunk lines; selective routing 
 95.18  equipment; the master street address guide; dispatcher public 
 95.19  safety answering point equipment proficiency and operational 
 95.20  skills; pay for long-distance charges incurred due to 
 95.21  transferring 911 calls to other jurisdictions; and the equipment 
 95.22  necessary within the public safety answering point for community 
 95.23  alert systems and to notify and communicate with the emergency 
 95.24  services requested by the 911 caller. 
 95.25     (b) Money distributed for enhanced 911 service may not be 
 95.26  spent on: 
 95.27     (1) purchasing or leasing of real estate or cosmetic 
 95.28  additions to or remodeling of communications centers; 
 95.29     (2) mobile communications vehicles, fire engines, 
 95.30  ambulances, law enforcement vehicles, or other emergency 
 95.31  vehicles; 
 95.32     (3) signs, posts, or other markers related to addressing or 
 95.33  any costs associated with the installation or maintenance of 
 95.34  signs, posts, or markers. 
 95.35     Sec. 25.  Minnesota Statutes 1996, section 403.113, 
 95.36  subdivision 4, is amended to read: 
 96.1      Subd. 4.  [AUDITS.] Each county and city or other 
 96.2   governmental entity as described in subdivision 2, paragraph 
 96.3   (a), clause (1), shall conduct an annual audit on the use of 
 96.4   funds distributed to it for enhanced 911 service.  A copy of 
 96.5   each audit report must be submitted to the commissioner of 
 96.6   administration. 
 96.7      Sec. 26.  Minnesota Statutes 1996, section 403.13, is 
 96.8   amended to read: 
 96.9      403.13 [CELLULAR TELEPHONE USE.] 
 96.10     Subdivision 1.  [CELLULAR 911 CALLS.] (a) Those 
 96.11  governmental entities that are responsible for the design, 
 96.12  planning, and coordination of the 911 emergency telephone system 
 96.13  under the requirements of this chapter shall ensure that a 911 
 96.14  emergency call made with a cellular or other wireless access 
 96.15  device is automatically connected to and answered by the 
 96.16  appropriate public safety answering point. 
 96.17     (b) In order to comply with paragraph (a), representatives 
 96.18  of each county's 911 planning committee shall consult with 
 96.19  representatives of the relevant district office of the state 
 96.20  patrol to allocate responsibility for answering emergency 911 
 96.21  calls in each county, and shall notify the commissioner of the 
 96.22  agreed upon allocation.  By April 1, 1998, for the metropolitan 
 96.23  area and June 1, 1998, for the area outside the metropolitan 
 96.24  area, the county 911 planning committees and the district 
 96.25  offices of the state patrol shall notify the commissioner of any 
 96.26  unresolved issues regarding the allocation of responsibility for 
 96.27  answering cellular 911 emergency calls.  
 96.28     (c) Unresolved issues in the metropolitan area must be 
 96.29  resolved by: 
 96.30     (1) the executive director of the metropolitan 911 board; 
 96.31     (2) the 911 product manager appointed by the commissioner; 
 96.32     (3) a representative appointed by the Minnesota state 
 96.33  sheriffs association from the metropolitan area; 
 96.34     (4) the commissioner of public safety or the commissioner's 
 96.35  designee; and 
 96.36     (5) a representative appointed by the Minnesota chiefs of 
 97.1   police association from the metropolitan area. 
 97.2      (d) Unresolved issues in the area outside the metropolitan 
 97.3   area must be resolved by: 
 97.4      (1) a representative appointed by association of Minnesota 
 97.5   counties from the area outside the metropolitan area; 
 97.6      (2) the 911 product manager appointed by the commissioner; 
 97.7      (3) a representative appointed by the Minnesota state 
 97.8   sheriffs association from the area outside the metropolitan 
 97.9   area; 
 97.10     (4) the commissioner of public safety or the commissioner's 
 97.11  designee; and 
 97.12     (5) a representative appointed by the Minnesota league of 
 97.13  cities from the area outside the metropolitan area. 
 97.14     (e) These committees shall resolve outstanding issues by 
 97.15  December 31, 1998.  The decision of the committee is final. 
 97.16     Subd. 2.  [NOTIFICATION OF SUBSCRIBERS.] A provider of 
 97.17  cellular or other wireless telephone services in Minnesota shall 
 97.18  notify its subscribers at the time of initial subscription and 
 97.19  four times per year thereafter that a 911 emergency call made 
 97.20  with a cellular wireless telephone is not always answered by a 
 97.21  local public safety answering point but rather is may be routed 
 97.22  to a state patrol dispatcher and that, accordingly, the caller 
 97.23  must provide specific information regarding the caller's 
 97.24  location. 
 97.25     Sec. 27.  [403.14] [WIRELESS ENHANCED 911 SERVICE PROVIDER; 
 97.26  LIABILITY.] 
 97.27     No wireless enhanced 911 emergency communication service 
 97.28  provider, its employees, or its agents is liable to any person 
 97.29  for civil damages resulting from or caused by any act or 
 97.30  omission in the development, design, installation, operation, 
 97.31  maintenance, performance, or provision of enhanced 911 wireless 
 97.32  service, except for willful or wanton misconduct.  No wireless 
 97.33  carrier, its employees, or its agents is liable to any person 
 97.34  who uses enhanced 911 wireless service for release of subscriber 
 97.35  information required under this chapter to any public safety 
 97.36  answering point. 
 98.1      Sec. 28.  Minnesota Statutes 1996, section 473.894, 
 98.2   subdivision 3, is amended to read: 
 98.3      Subd. 3.  [APPLICATION TO FCC.] Within 180 days from 
 98.4   adoption of the regionwide public safety radio system 
 98.5   communication plan the commissioner of transportation, on behalf 
 98.6   of the state of Minnesota, shall use the plan adopted by the 
 98.7   board under subdivision 2 to submit an extended implementation 
 98.8   application to the Federal Communications Commission (FCC) for 
 98.9   the NPSPAC channels and other public safety frequencies 
 98.10  available for use in the metropolitan area and necessary to 
 98.11  implement the plan.  Local governments and all other public or 
 98.12  private entities eligible under part 90 of the FCC rules shall 
 98.13  not apply for public safety channels in the 821 to 824 and 866 
 98.14  to 869 megahertz bands for use within the metropolitan counties 
 98.15  until the FCC takes final action on the regional application 
 98.16  submitted under this section.  Exceptions to the restrictions on 
 98.17  the application for the NPSPAC channels may be granted by the 
 98.18  radio board.  The Minnesota department of transportation shall 
 98.19  hold the master system licenses for all public safety 
 98.20  frequencies assigned to the metropolitan area issued by the FCC 
 98.21  first phase under the board's plan and these channels shall be 
 98.22  used for the implementation of the plan.  Local governments and 
 98.23  other public and private entities eligible under part 90 of the 
 98.24  FCC rules may apply to the FCC as colicensees for subscriber 
 98.25  equipment and those portions of the network infrastructure owned 
 98.26  by them.  Application for colicensing under this section shall 
 98.27  require the concurrence of the radio board The radio board shall 
 98.28  hold the master system licenses for the public safety 
 98.29  frequencies assigned to local government subsystems under the 
 98.30  board's plan and these channels shall be used for implementation 
 98.31  of the plan.  Upon approval by the board of a local government's 
 98.32  subsystem plan and evidence of a signed contract with a vendor 
 98.33  for construction of a subsystem consistent with the board's 
 98.34  system plan, the board shall apply to the FCC to transfer to the 
 98.35  local government the licenses for the public safety frequencies 
 98.36  assigned by the plan for use in the network infrastructure owned 
 99.1   by the local government.  The radio board, the commissioner of 
 99.2   transportation, and local subsystem owners shall jointly 
 99.3   colicense all subscriber equipment for the backbone system. 
 99.4      Sec. 29.  [APPLICATION.] 
 99.5      Section 28 applies in Anoka, Carver, Dakota, Hennepin, 
 99.6   Ramsey, Scott, and Washington counties. 
 99.7      Sec. 30.  [INTERIM FEE; APPROPRIATION AND DISTRIBUTION.] 
 99.8      (a) Until June 30, 1998, the fee for enhanced wireless 911 
 99.9   service is ten cents per month in addition to the fee actually 
 99.10  collected under Minnesota Statutes, section 403.11, subdivision 
 99.11  1.  The additional fee is imposed effective July 1, 1997, and is 
 99.12  appropriated to the commissioner of administration for 
 99.13  distribution as established in section 22. 
 99.14     (b) Distribution of the revenue from the fee under section 
 99.15  22 for enhanced wireless 911 service must begin October 1, 1997. 
 99.16  The commissioner of administration shall determine the amount of 
 99.17  the additional enhanced wireless 911 service fee to be in effect 
 99.18  beginning July 1, 1998, under Minnesota Statutes, section 
 99.19  403.113. 
 99.20     Sec. 31.  [INITIAL DUTIES.] 
 99.21     (a) Upon creation, the office of technology shall perform a 
 99.22  series of preliminary duties designed to assess the current 
 99.23  status of the state's investment in information technology and 
 99.24  to establish a clear means of directing future information 
 99.25  technology initiatives. 
 99.26     (b) By November 1, 1997, the office shall recommend to the 
 99.27  governor and the legislature a clearly defined statutory funding 
 99.28  structure that: 
 99.29     (1) efficiently uses available federal, state, and local 
 99.30  funding sources to develop and maintain a statewide public 
 99.31  information and communications infrastructure; and 
 99.32     (2) provides a means of tracking and compiling all state 
 99.33  agency expenditures related to information technology. 
 99.34     This report also shall include a proposed format to be used 
 99.35  by state agencies for information technology budget requests.  
 99.36  The proposed format must be created in collaboration with the 
100.1   commissioners of administration and finance. 
100.2      (c) By December 1, 1997, the office shall review and report 
100.3   to the governor and the legislature on the status of all 
100.4   currently established state agency and intergovernmental 
100.5   information and communications systems that use state funding.  
100.6   The report shall recommend a means of consolidating existing 
100.7   governmental information technology boards and councils, to 
100.8   achieve efficiency, prevent duplication of effort, and clarify 
100.9   lines of authority. 
100.10     Sec. 32.  [EMPLOYEES; TRANSITION.] 
100.11     Persons assigned to the office of technology on the day 
100.12  before the effective date of this section are transferred in 
100.13  their existing status according to Minnesota Statutes, section 
100.14  15.039, subdivision 7.  Effective July 1, 1998, these employees, 
100.15  other than the executive director and the deputy and assistant 
100.16  directors, and one confidential secretary, are converted from 
100.17  the unclassified to the classified service under the following 
100.18  conditions: 
100.19     (a) The commissioner of employee relations will allocate 
100.20  positions and incumbent employees to appropriate classes in the 
100.21  state classification plan pursuant to Minnesota Statutes, 
100.22  section 43A.07.  The commissioner will also assign positions and 
100.23  incumbent employees to an appropriate state unit under Minnesota 
100.24  Statutes, section 179A.10.  Positions converted with their 
100.25  incumbents do not create vacancies in state service. 
100.26     (b) Employees serving in unclassified appointments from the 
100.27  effective date of this section through June 30, 1998, and 
100.28  converted to unlimited classified service on July 1, 1998, are 
100.29  converted to state service without examination.  Those converted 
100.30  to classified positions in the managerial plan pursuant to 
100.31  Minnesota Statutes, section 43A.18, subdivision 3, who have 
100.32  completed 12 months of service in their positions and all others 
100.33  converted to classified positions who have completed six months 
100.34  of service in their positions and all others converted to 
100.35  classified positions who have completed six months of service in 
100.36  their positions are converted with permanent status.  Employees 
101.1   converted to classified managerial positions with less than 12 
101.2   months of service in their positions and all others converted to 
101.3   classified positions with less than six months of service in 
101.4   their position are converted with probationary status.  All time 
101.5   already served by these employees in the converted positions 
101.6   must be credited toward meeting the probationary period 
101.7   requirement of the state contract or plan to which their 
101.8   position has been assigned. 
101.9      Sec. 33.  [TRANSFERS.] 
101.10     In accordance with Minnesota Statutes, sections 15.039 and 
101.11  43A.045, the positions for functions transferred from the 
101.12  information policy office, with incumbents, excluding the public 
101.13  information policy analysis division, are transferred to the 
101.14  Minnesota office of technology, effective July 1, 1997. 
101.15     Sec. 34.  [INFORMATION TECHNOLOGY.] 
101.16     By February 1, 1998, each executive branch state agency, 
101.17  including the MNSCU system, shall report to the finance 
101.18  divisions or committees in the house and the senate that 
101.19  appropriate money for the agency on current and planned 
101.20  expenditures for information technology.  The report must 
101.21  include: 
101.22     (1) expenditures that will be incurred in the biennium 
101.23  ending June 30, 1999, and any planned future expenditures for 
101.24  each information technology project in the agency; 
101.25     (2) the goals and objectives for each information 
101.26  technology project that is being developed in the biennium 
101.27  ending June 30, 1999, or that is planned for a future biennium; 
101.28  and 
101.29     (3) the agency's progress in making its information 
101.30  technology systems compliant with the year 2000.  
101.31     Sec. 35.  [INSTRUCTION TO REVISOR.] 
101.32     The revisor shall change in Minnesota Statutes and 
101.33  Minnesota Rules all references to the information policy office 
101.34  and the government information access council to the office of 
101.35  technology. 
101.36     Sec. 36.  [REPEALER.] 
102.1      Minnesota Statutes 1996, sections 15.95; 15.96; 16B.40; 
102.2   16B.41; and 16B.43, are repealed. 
102.3      Sec. 37.  [EFFECTIVE DATE.] 
102.4      Sections 20, 21, and 23 to 28 are effective the day 
102.5   following final enactment. 
102.6                              ARTICLE 4 
102.7                       COMMUNITY-BASED PLANNING 
102.8      Section 1.  [4A.08] [COMMUNITY-BASED PLANNING GOALS.] 
102.9      The goals of community-based planning are: 
102.10     (1) [CITIZEN PARTICIPATION.] To develop a community-based 
102.11  planning process with broad citizen participation in order to 
102.12  build local capacity to plan for sustainable development and to 
102.13  benefit from the insights, knowledge, and support of local 
102.14  residents.  The process must include at least one citizen from 
102.15  each affected unit of local government; 
102.16     (2) [COOPERATION.] To promote cooperation among communities 
102.17  to work towards the most efficient, planned, and cost-effective 
102.18  delivery of government services by, among other means, 
102.19  facilitating cooperative agreements among adjacent communities 
102.20  and to coordinate planning to ensure compatibility of one 
102.21  community's development with development of neighboring 
102.22  communities; 
102.23     (3) [ECONOMIC DEVELOPMENT.] To create sustainable economic 
102.24  development strategies and provide economic opportunities 
102.25  throughout the state that will achieve a balanced distribution 
102.26  of growth statewide; 
102.27     (4) [CONSERVATION.] To protect, preserve, and enhance the 
102.28  state's resources, including agricultural land, forests, surface 
102.29  water and groundwater, recreation and open space, scenic areas, 
102.30  and significant historic and archaeological sites; 
102.31     (5) [LIVABLE COMMUNITY DESIGN.] To strengthen communities 
102.32  by following the principles of livable community design in 
102.33  development and redevelopment, including integration of all 
102.34  income and age groups, mixed land uses and compact development, 
102.35  affordable and life-cycle housing, green spaces, access to 
102.36  public transit, bicycle and pedestrian ways, and enhanced 
103.1   aesthetics and beauty in public spaces; 
103.2      (6) [HOUSING.] To provide and preserve an adequate supply 
103.3   of affordable and life-cycle housing throughout the state; 
103.4      (7) [TRANSPORTATION.] To focus on the movement of people 
103.5   and goods, rather than on the movement of automobiles, in 
103.6   transportation planning, and to maximize the efficient use of 
103.7   the transportation infrastructure by increasing the availability 
103.8   and use of appropriate public transit throughout the state 
103.9   through land-use planning and design that makes public transit 
103.10  economically viable and desirable; 
103.11     (8) [LAND-USE PLANNING.] To establish a community-based 
103.12  framework as a basis for all decisions and actions related to 
103.13  land use; 
103.14     (9) [PUBLIC INVESTMENTS.] To account for the full 
103.15  environmental, social, and economic costs of new development, 
103.16  including infrastructure costs such as transportation, sewers 
103.17  and wastewater treatment, water, schools, recreation, and open 
103.18  space, and plan the funding mechanisms necessary to cover the 
103.19  costs of the infrastructure; 
103.20     (10) [PUBLIC EDUCATION.] To support research and public 
103.21  education on a community's and the state's finite capacity to 
103.22  accommodate growth, and the need for planning and resource 
103.23  management that will sustain growth; and 
103.24     (11) [SUSTAINABLE DEVELOPMENT.] To provide a better quality 
103.25  of life for all residents while maintaining nature's ability to 
103.26  function over time by minimizing waste, preventing pollution, 
103.27  promoting efficiency, and developing local resources to 
103.28  revitalize the local economy. 
103.29     Sec. 2.  [4A.09] [TECHNICAL ASSISTANCE.] 
103.30     The office shall provide local governments technical and 
103.31  financial assistance in preparing their comprehensive plans to 
103.32  meet the community-based planning goals in section 4A.08.  
103.33     Sec. 3.  [4A.10] [PLAN REVIEW AND COMMENT.] 
103.34     The office shall review and comment on community-based 
103.35  comprehensive plans prepared by counties, including the 
103.36  community-based comprehensive plans of municipalities and towns 
104.1   that are incorporated into a county's plan, as required in 
104.2   section 394.232, subdivision 3. 
104.3      Sec. 4.  Minnesota Statutes 1996, section 394.23, is 
104.4   amended to read: 
104.5      394.23 [COMPREHENSIVE PLAN.] 
104.6      The board shall have has the power and authority to prepare 
104.7   and adopt by ordinance, a comprehensive plan.  A comprehensive 
104.8   plan or plans when adopted by ordinance shall must be the basis 
104.9   for official controls adopted under the provisions of sections 
104.10  394.21 to 394.37.  
104.11     Sec. 5.  [394.232] [COMMUNITY-BASED PLANNING.] 
104.12     Subdivision 1.  [GENERAL.] Each county is encouraged to 
104.13  prepare and implement a community-based comprehensive plan.  A 
104.14  community-based comprehensive plan is a comprehensive plan that 
104.15  is consistent with the goals of community-based planning in 
104.16  section 4A.08. 
104.17     Subd. 2.  [NOTICE AND PARTICIPATION.] Notice must be given 
104.18  at the beginning of the community-based comprehensive planning 
104.19  process to the office of strategic and long-range planning, the 
104.20  department of natural resources, the department of agriculture, 
104.21  the department of trade and economic development, the board of 
104.22  soil and water resources, the pollution control agency, the 
104.23  department of transportation, local government units, and local 
104.24  citizens to actively participate in the development of the 
104.25  plan.  An agency that is invited to participate in the 
104.26  development of a local plan but declines to do so and fails to 
104.27  participate or to provide written comments during the plan 
104.28  development process waives the right during the office's review 
104.29  and comment period to submit comments, except for comments 
104.30  concerning consistency of the plan with laws and rules 
104.31  administered by the agency.  In determining the merit of the 
104.32  agency comment, the office shall consider the involvement of the 
104.33  agency in the development of the plan. 
104.34     Subd. 3.  [COORDINATION.] A county that prepares a 
104.35  community-based comprehensive plan shall coordinate its plan 
104.36  with the plans of its neighbors and its constituent 
105.1   municipalities and towns in order both to prevent its plan from 
105.2   having an adverse impact on other jurisdictions and to 
105.3   complement plans of other jurisdictions.  The county's 
105.4   community-based comprehensive plan must incorporate the 
105.5   community-based comprehensive plan of any municipality or town 
105.6   in the county prepared in accordance with section 462.3535.  A 
105.7   county may incorporate a municipal or town community-based 
105.8   comprehensive plan by reference.  
105.9      Subd. 4.  [JOINT PLANNING.] Under the joint exercise of 
105.10  powers provisions in section 471.59, a county may establish a 
105.11  joint planning district with other counties, municipalities, and 
105.12  towns, that are geographically contiguous, to adopt a single 
105.13  community-based comprehensive plan for the district.  The county 
105.14  may delegate its authority to adopt official controls under this 
105.15  chapter, to the board of the joint planning district. 
105.16     Subd. 5.  [REVIEW AND COMMENT.] (a) The county or joint 
105.17  planning district shall submit its community-based comprehensive 
105.18  plan to the office of strategic and long-range planning for 
105.19  review.  The plan is deemed approved 60 days after submittal to 
105.20  the office, unless the office disagrees with the plan as 
105.21  provided in paragraph (c). 
105.22     (b) The office may not disapprove a community-based 
105.23  comprehensive plan if the office determines that the plan meets 
105.24  the requirements of this section.  
105.25     (c) If the office disagrees with a community-based 
105.26  comprehensive plan or any elements of the plan, the office shall 
105.27  notify the county or district in writing of the plan 
105.28  deficiencies and suggested changes.  Upon receipt of the 
105.29  office's written comments, the county or district has 60 days to 
105.30  revise the community-based comprehensive plan and resubmit it to 
105.31  the office for reconsideration. 
105.32     (d) If the county or district refuses to revise the plan or 
105.33  the office disagrees with the revised plan, the office shall 
105.34  within 60 days notify the county or district that it wishes to 
105.35  initiate the dispute resolution process in chapter 572A. 
105.36     (e) Within 30 days of notice from the office, the county or 
106.1   joint planning district shall notify the office of its intent to 
106.2   enter the dispute resolution process.  If the county or district 
106.3   refuses to enter the dispute resolution process, the county or 
106.4   district shall refund any state grant received for 
106.5   community-based planning activities through the office. 
106.6      Subd. 6.  [PLAN UPDATE.] The county board, or the board of 
106.7   the joint planning district, shall review and update the 
106.8   community-based comprehensive plan periodically, but at least 
106.9   every ten years, and submit the updated plan to the office of 
106.10  strategic and long-range planning for review and comment.  
106.11     Subd. 7.  [NO MANDAMUS PROCEEDING.] A mandamus proceeding 
106.12  may not be instituted against a county under this section to 
106.13  require the county to conform its community-based comprehensive 
106.14  plan to be consistent with the community-based planning goals in 
106.15  section 4A.08. 
106.16     Subd. 8.  [PLANNING AUTHORITY.] Nothing in this section 
106.17  shall be construed to prohibit or limit a county's authority to 
106.18  prepare and adopt a comprehensive plan and official controls 
106.19  under this chapter. 
106.20     Sec. 6.  Minnesota Statutes 1996, section 394.24, 
106.21  subdivision 1, is amended to read: 
106.22     Subdivision 1.  [ADOPTED BY ORDINANCE.] Official controls 
106.23  which shall further the purpose and objectives of the 
106.24  comprehensive plan and parts thereof shall be adopted by 
106.25  ordinance.  The comprehensive plan must provide guidelines for 
106.26  the timing and sequence of the adoption of official controls to 
106.27  ensure planned, orderly, and staged development and 
106.28  redevelopment consistent with the comprehensive plan.  
106.29     Sec. 7.  Minnesota Statutes 1996, section 462.352, 
106.30  subdivision 5, is amended to read: 
106.31     Subd. 5.  [COMPREHENSIVE MUNICIPAL PLAN.] "Comprehensive 
106.32  municipal plan" means a compilation of policy statements, goals, 
106.33  standards, and maps for guiding the physical, social and 
106.34  economic development, both private and public, of the 
106.35  municipality and its environs, including air space and 
106.36  subsurface areas necessary for mined underground space 
107.1   development pursuant to sections 469.135 to 469.141, and may 
107.2   include, but is not limited to, the following:  statements of 
107.3   policies, goals, standards, a land use plan, including proposed 
107.4   densities for development, a community facilities plan, a 
107.5   transportation plan, and recommendations for plan execution.  A 
107.6   comprehensive plan represents the planning agency's 
107.7   recommendations for the future development of the community.  
107.8      Sec. 8.  Minnesota Statutes 1996, section 462.352, 
107.9   subdivision 6, is amended to read: 
107.10     Subd. 6.  [LAND USE PLAN.] "Land use plan" means a 
107.11  compilation of policy statements, goals, standards, and maps, 
107.12  and action programs for guiding the future development of 
107.13  private and public property.  The term includes a plan 
107.14  designating types of uses for the entire municipality as well as 
107.15  a specialized plan showing specific areas or specific types of 
107.16  land uses, such as residential, commercial, industrial, public 
107.17  or semipublic uses or any combination of such uses.  A land use 
107.18  plan may also include the proposed densities for development. 
107.19     Sec. 9.  Minnesota Statutes 1996, section 462.352, is 
107.20  amended by adding a subdivision to read: 
107.21     Subd. 18.  [URBAN GROWTH AREA.] "Urban growth area" means 
107.22  the identified area around an urban area within which there is a 
107.23  sufficient supply of developable land for at least a prospective 
107.24  20-year period, based on demographic forecasts and the time 
107.25  reasonably required to effectively provide municipal services to 
107.26  the identified area. 
107.27     Sec. 10.  [462.3535] [COMMUNITY-BASED PLANNING.] 
107.28     Subdivision 1.  [GENERAL.] Each municipality is encouraged 
107.29  to prepare and implement a community-based comprehensive 
107.30  municipal plan.  A community-based comprehensive municipal plan 
107.31  is a comprehensive plan that is consistent with the goals of 
107.32  community-based planning in section 4A.08. 
107.33     Subd. 2.  [COORDINATION.] A municipality that prepares a 
107.34  community-based comprehensive municipal plan shall coordinate 
107.35  its plan with the plans, if any, of the county and the 
107.36  municipality's neighbors both in order to prevent the plan from 
108.1   having an adverse impact on other jurisdictions and to 
108.2   complement the plans of other jurisdictions.  The municipality 
108.3   shall prepare its plan to be incorporated into the county's 
108.4   community-based comprehensive plan, if the county is preparing 
108.5   or has prepared one, and shall otherwise assist and cooperate 
108.6   with the county in its community-based planning. 
108.7      Subd. 3.  [JOINT PLANNING.] Under the joint exercise of 
108.8   powers provisions in section 471.59, a municipality may 
108.9   establish a joint planning district with other municipalities or 
108.10  counties that are geographically contiguous, to adopt a single 
108.11  community-based comprehensive plan for the district.  A 
108.12  municipality may delegate its authority to adopt official 
108.13  controls under sections 462.351 to 462.364, to the board of the 
108.14  joint planning district. 
108.15     Subd. 4.  [CITIES; URBAN GROWTH AREAS.] (a) The 
108.16  community-based comprehensive municipal plan for a statutory or 
108.17  home rule charter city, and official controls to implement the 
108.18  plan, must at a minimum, address any urban growth area 
108.19  identified in a county plan and may establish an urban growth 
108.20  area for the urbanized and urbanizing area.  The city plan must 
108.21  establish a staged process for boundary adjustment to include 
108.22  the urbanized or urbanizing area within corporate limits as the 
108.23  urban growth area is developed and provided municipal services. 
108.24     (b) Within the urban growth area, the plan must provide for 
108.25  the staged provision of urban services, including, but not 
108.26  limited to, water, wastewater collection and treatment, and 
108.27  transportation.  
108.28     Subd. 5.  [URBAN GROWTH AREA BOUNDARY ADJUSTMENT 
108.29  PROCESS.] (a) After an urban growth area has been identified in 
108.30  a county or city plan, a city shall negotiate, as part of the 
108.31  comprehensive planning process and in coordination with the 
108.32  county, an orderly annexation agreement with the townships 
108.33  containing the affected unincorporated areas located within the 
108.34  identified urban growth area.  The agreement shall contain a 
108.35  boundary adjustment staging plan that establishes a sequencing 
108.36  plan over the subsequent 20-year period for the orderly growth 
109.1   of the city based on its reasonably anticipated development 
109.2   pattern and ability to extend municipal services into designated 
109.3   unincorporated areas located within the identified urban growth 
109.4   area.  The city shall include the staging plan agreed upon in 
109.5   the orderly annexation agreement in its comprehensive plan.  
109.6   Upon agreement by the city and town, prior adopted orderly 
109.7   annexation agreements may be included as part of the boundary 
109.8   adjustment plan and comprehensive plan without regard to whether 
109.9   the prior adopted agreement is consistent with this section.  
109.10  When either the city or town requests that an existing orderly 
109.11  annexation agreement affecting unincorporated areas located 
109.12  within an identified or proposed urban growth area be 
109.13  renegotiated, the renegotiated plan shall be consistent with 
109.14  this section. 
109.15     (b) After a city's community-based comprehensive plan is 
109.16  approved under this section, the orderly annexation agreement 
109.17  shall be filed with the municipal board or its successor 
109.18  agency.  Thereafter, the city may orderly annex the part or 
109.19  parts of the designated unincorporated area according to the 
109.20  sequencing plan and conditions contained in the negotiated 
109.21  orderly annexation agreement by submitting a resolution to the 
109.22  municipal board or its successor agency.  The resolution shall 
109.23  specify the legal description of the area designated pursuant to 
109.24  the staging plan contained in the agreement, a map showing the 
109.25  new boundary and its relation to the existing city boundary, a 
109.26  description of and schedule for extending municipal services to 
109.27  the area, and a determination that all applicable conditions in 
109.28  the agreement have been satisfied.  Within 30 days of receipt of 
109.29  the resolution, the municipal board or its successor shall 
109.30  review the resolution and if it finds that the terms and 
109.31  conditions of the orderly annexation agreement have been met, 
109.32  shall order the annexation.  The boundary adjustment shall 
109.33  become effective upon issuance of an order by the municipal 
109.34  board or its successor.  The municipal board or its successor 
109.35  shall cause copies of the boundary adjustment order to be mailed 
109.36  to the secretary of state, department of revenue, state 
110.1   demographer, and the department of transportation.  No further 
110.2   proceedings under chapter 414 or 572A shall be required to 
110.3   accomplish the boundary adjustment.  This section provides the 
110.4   sole method for annexing unincorporated land within an urban 
110.5   growth area, unless the parties agree otherwise. 
110.6      (c) If a community-based comprehensive plan is updated, the 
110.7   parties shall renegotiate the orderly annexation agreement as 
110.8   needed to incorporate the adjustments and shall refile the 
110.9   agreement with the municipal board or its successor. 
110.10     Subd. 6.  [REVIEW BY ADJACENT MUNICIPALITIES; CONFLICT 
110.11  RESOLUTION.] Before a community-based comprehensive municipal 
110.12  plan is incorporated into the county's plan under section 
110.13  394.232, subdivision 3, a municipality's community-based 
110.14  comprehensive municipal plan must be coordinated with adjacent 
110.15  municipalities within the county.  As soon as practical after 
110.16  the development of a community-based comprehensive municipal 
110.17  plan, the municipality shall provide a copy of the draft plan to 
110.18  adjacent municipalities within the county for review and 
110.19  comment.  An adjacent municipality has 30 days after receipt to 
110.20  review the plan and submit written comments. 
110.21     Subd. 7.  [COUNTY REVIEW.] (a) If a city does not plan for 
110.22  growth beyond its current boundaries, the city shall submit its 
110.23  community-based comprehensive municipal plan to the county for 
110.24  review and comment.  A county has 60 days after receipt to 
110.25  review the plan and submit written comments to the city.  The 
110.26  city may amend its plan based upon the county's comments.  
110.27     (b) If a town prepares a community-based comprehensive 
110.28  plan, it shall submit the plan to the county for review and 
110.29  comment.  As provided in section 394.33, the town plan may not 
110.30  be inconsistent with or less restrictive than the county plan.  
110.31  A county has 60 days after receipt to review the plan and submit 
110.32  written comments to the town.  The town may amend its plan based 
110.33  on the county's comment. 
110.34     Subd. 8.  [COUNTY APPROVAL.] (a) If a city plans for growth 
110.35  beyond its current boundaries, the city's proposed 
110.36  community-based comprehensive municipal plan and proposed urban 
111.1   growth area must be reviewed and approved by the county before 
111.2   the plan is incorporated into the county's plan.  The county may 
111.3   review and provide comments on any orderly annexation agreement 
111.4   during the same period of review of a comprehensive plan. 
111.5      (b) Upon receipt by the county of a community-based 
111.6   comprehensive plan submitted by a city for review and approval 
111.7   under this subdivision, the county shall, within 60 days of 
111.8   receipt of a city plan, review and approve the plan in 
111.9   accordance with this subdivision.  The county shall review and 
111.10  approve the city plan if it is consistent with the goals stated 
111.11  in section 4A.08. 
111.12     (c) In the event the county does not approve the plan, the 
111.13  county shall submit its comments to the city within 60 days.  
111.14  The city may, thereafter, amend the plan and resubmit the plan 
111.15  to the county.  The county shall have an additional 60 days to 
111.16  review and approve a resubmitted plan.  In the event the county 
111.17  and city are unable to come to agreement, either party may 
111.18  initiate the dispute resolution process contained in chapter 
111.19  572A.  Within 30 days of receiving notice that the other party 
111.20  has initiated dispute resolution, the city or county shall send 
111.21  notice of its intent to enter dispute resolution.  If the city 
111.22  refuses to enter the dispute resolution process, it must refund 
111.23  any grant received from the county for community-based planning 
111.24  activities.  
111.25     Subd. 9.  [PLAN ADOPTION.] The municipality shall adopt and 
111.26  implement the community-based comprehensive municipal plan after 
111.27  the office of strategic and long-range planning has reviewed and 
111.28  commented on the county's plan that incorporates the 
111.29  municipality's plan.  The municipality shall thereafter, where 
111.30  it deems appropriate, incorporate any comments made by the 
111.31  office into its plan and adopt the plan. 
111.32     Subd. 10.  [NO MANDAMUS PROCEEDING.] A mandamus proceeding 
111.33  may not be instituted against a municipality under this section 
111.34  to require the municipality to conform its community-based 
111.35  comprehensive plan to be consistent with the community-based 
111.36  planning goals in section 4A.08. 
112.1      Sec. 11.  Minnesota Statutes 1996, section 462.357, 
112.2   subdivision 2, is amended to read: 
112.3      Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
112.4   adoption of a land use plan for the municipality, the planning 
112.5   agency, for the purpose of carrying out the policies and goals 
112.6   of the land use plan, may prepare a proposed zoning ordinance 
112.7   and submit it to the governing body with its recommendations for 
112.8   adoption.  Subject to the requirements of subdivisions 3, 4 and 
112.9   5, the governing body may adopt and amend a zoning ordinance by 
112.10  a two-thirds vote of all its members.  If the comprehensive 
112.11  municipal plan is in conflict with the zoning ordinance, the 
112.12  zoning ordinance supersedes the plan.  The plan must provide 
112.13  guidelines for the timing and sequence of the adoption of 
112.14  official controls to ensure planned, orderly, and staged 
112.15  development and redevelopment consistent with the plan. 
112.16     Sec. 12.  [473.1455] [METROPOLITAN DEVELOPMENT GUIDE 
112.17  GOALS.] 
112.18     The metropolitan council shall amend the metropolitan 
112.19  development guide, as necessary, to reflect and implement the 
112.20  community-based planning goals in section 4A.08.  The office of 
112.21  strategic and long-range planning shall review and comment on 
112.22  the metropolitan development guide.  The council may not approve 
112.23  local comprehensive plans or plan amendments after July 1, 1999, 
112.24  until the metropolitan council has received and considered the 
112.25  comments of the office of strategic and long-range planning. 
112.26     Sec. 13.  [ADVISORY COUNCIL ON COMMUNITY-BASED PLANNING.] 
112.27     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] An advisory 
112.28  council on community-based planning is established to provide a 
112.29  forum for discussion and development of the framework for 
112.30  community-based planning and the incentives and tools to 
112.31  implement the plans. 
112.32     Subd. 2.  [DUTIES.] The advisory council shall propose 
112.33  legislation for the 1998 legislative session relating to the 
112.34  framework to implement community-based planning.  The advisory 
112.35  council shall: 
112.36     (1) develop a model process to involve citizens in 
113.1   community-based planning from the beginning of the planning 
113.2   process; 
113.3      (2) hold meetings statewide to solicit advice and 
113.4   information on how to implement community-based planning; 
113.5      (3) develop specific, measurable criteria by which plans 
113.6   will be reviewed for consistency with the goals in Minnesota 
113.7   Statutes, section 4A.08, and commented on by the office of 
113.8   strategic and long-range planning; 
113.9      (4) recommend a procedure for review and comment on 
113.10  community-based plans; 
113.11     (5) recommend a process for coordination of plans among 
113.12  local jurisdictions; 
113.13     (6) recommend an alternative dispute resolution method for 
113.14  citizens and local governments to use to challenge proposed 
113.15  plans or the implementation of plans; 
113.16     (7) recommend incentives to encourage state agencies to 
113.17  implement the goals of community-based planning; 
113.18     (8) recommend incentives for local governments to develop 
113.19  community-based plans, including for example, assistance with 
113.20  computerized geographic information systems, builders' remedies 
113.21  and density bonuses, and revised permitting processes; 
113.22     (9) describe the tools and strategies that a county, city, 
113.23  or town may use to achieve the goals, including, but not limited 
113.24  to, densities, urban growth areas, purchase or transfer of 
113.25  development rights programs, public investment surcharges, 
113.26  transit and transit-oriented development, and zoning and other 
113.27  official controls; 
113.28     (10) recommend the time frame in which the community-based 
113.29  plans must be completed; 
113.30     (11) consider the need for ongoing stewardship and 
113.31  oversight of sustainable development initiatives and the 
113.32  community-based planning process; 
113.33     (12) review and recommend changes to the community-based 
113.34  planning framework established in this act; and 
113.35     (13) make other recommendations to implement 
113.36  community-based planning as the advisory council determines 
114.1   would be necessary or helpful in achieving the goals. 
114.2      Subd. 3.  [MEMBERSHIP.] The advisory council consists of 18 
114.3   voting members who serve at the pleasure of the appointing 
114.4   authority as follows: 
114.5      (1) two members of the majority caucus of the house of 
114.6   representatives appointed by the speaker, and two members of the 
114.7   minority caucus appointed by the minority leader; 
114.8      (2) four members of the senate appointed by the 
114.9   subcommittee on committees of the committee on rules and 
114.10  administration of the senate, two of whom shall be members of 
114.11  the minority caucus; 
114.12     (3) the director, or the director's designee, of the office 
114.13  of strategic and long-range planning; 
114.14     (4) three public members, at least one of whom must be 
114.15  knowledgeable about and have experience in local government 
114.16  issues or planning, appointed by the speaker of the house of 
114.17  representatives; 
114.18     (5) three public members, at least one of whom must be 
114.19  knowledgeable about and have experience in local government 
114.20  issues or planning, appointed by the subcommittee on committees 
114.21  of the committee on rules and administration of the senate; and 
114.22     (6) three public members, at least one of whom must be 
114.23  knowledgeable about and have experience in local government 
114.24  issues or planning, appointed by the governor.  
114.25     The commissioners, or their designees, of the departments 
114.26  of natural resources, agriculture, transportation, and trade and 
114.27  economic development, and the chair, or the chair's designee, of 
114.28  the metropolitan council shall serve as ex-officio members. 
114.29     The advisory council may form an executive committee to 
114.30  facilitate the work of the council. 
114.31     Subd. 4.  [FIRST MEETING; CHAIR.] The director of the 
114.32  office of strategic and long-range planning, or the director's 
114.33  designee, shall convene the first meeting of the advisory 
114.34  council.  At its first meeting, the advisory council shall 
114.35  select from among its members a person to serve as chair. 
114.36     Subd. 5.  [ADMINISTRATION.] The office of strategic and 
115.1   long-range planning, with assistance from other state agencies 
115.2   and the metropolitan council as needed, shall provide 
115.3   administrative and staff assistance to the advisory council.  
115.4   The attorney general shall provide advice on legal issues to the 
115.5   advisory council. 
115.6      Subd. 6.  [EXPENSES.] The office of strategic and 
115.7   long-range planning shall compensate members of the advisory 
115.8   council.  Members shall receive per diem and expenses as 
115.9   provided by Minnesota Statutes, section 15.059, subdivision 3.  
115.10     Subd. 7.  [EXPIRATION.] This section expires June 30, 1998. 
115.11     Sec. 14.  [CITATION.] 
115.12     Sections 1 to 13 may be cited as the "Community-based 
115.13  Planning Act." 
115.14     Sec. 15.  [APPLICATION.] 
115.15     Section 12 applies in the counties of Anoka, Carver, 
115.16  Dakota, Hennepin, Ramsey, Scott, and Washington. 
115.17     Sec. 16.  [PILOT PROJECTS ESTABLISHED.] 
115.18     The office of strategic and long-range planning shall 
115.19  establish community-based comprehensive land use planning pilot 
115.20  projects as specified in sections 17 to 21. 
115.21     Sec. 17.  [PLAN SUBMITTAL; REVIEW.] 
115.22     A county or joint planning district participating in a 
115.23  pilot project must prepare a community-based comprehensive plan 
115.24  as specified in Minnesota Statutes, section 394.232.  The county 
115.25  or joint powers board must submit the plan to the office of 
115.26  strategic and long-range planning within 24 months of the 
115.27  county's or district's selection as a pilot project.  The office 
115.28  shall review each plan to determine if it is consistent with the 
115.29  community-based planning goals in Minnesota Statutes, section 
115.30  4A.08.  The office shall complete its review and comment as 
115.31  specified in Minnesota Statutes, section 394.232, subdivision 5. 
115.32     Sec. 18.  [PLAN CONTENT.] 
115.33     Subdivision 1.  [GOALS.] The plan must address the 
115.34  community-based planning goals in Minnesota Statutes, section 
115.35  4A.08.  
115.36     Subd. 2.  [MUNICIPAL AND TOWN PLAN INCORPORATION.] The plan 
116.1   must incorporate the community-based comprehensive plan of each 
116.2   municipality and town in the county.  Incorporation of a 
116.3   municipal or town plan is sufficient if the county or joint 
116.4   powers board adopts a resolution approving and incorporating by 
116.5   reference the plan or any subsequent amendments to the plan.  
116.6      Subd. 3.  [URBAN GROWTH AREAS.] The plan must identify, 
116.7   establish, and address urban growth areas, as defined in 
116.8   Minnesota Statutes, section 462.352, subdivision 18, within the 
116.9   county.  The land outside an urban growth area must be zoned as 
116.10  permanent rural or agricultural land, or other appropriate land 
116.11  use, and must be maintained at density levels consistent with 
116.12  those uses.  The plan must also identify the density at which 
116.13  the municipality wishes to develop. 
116.14     Subd. 4.  [EXISTING PLANS.] If the county has a previously 
116.15  adopted plan, the county board or joint powers board shall 
116.16  review, update, and submit to the office of strategic and 
116.17  long-range planning a revised plan and official controls meeting 
116.18  the requirements of this section, including the community-based 
116.19  comprehensive municipal plan for each municipality or town in 
116.20  the county, if any, within 24 months of the county's or 
116.21  district's selection as a pilot project. 
116.22     Sec. 19.  [COORDINATION WITH ADJACENT COUNTIES.] 
116.23     Before submitting the community-based comprehensive plan to 
116.24  the office of strategic and long-range planning, the county or 
116.25  joint powers board shall coordinate its plan with adjacent 
116.26  counties.  The adjacent counties shall review and submit written 
116.27  comments on the proposed plan to the board within 60 days of 
116.28  receiving the plan.  
116.29     Sec. 20.  [COORDINATION WITH METROPOLITAN COUNCIL.] 
116.30     A county or joint planning district adjacent to the 
116.31  metropolitan area shall coordinate its plan with the 
116.32  metropolitan council, in relation to the council's development 
116.33  guide. 
116.34     The county or joint planning district shall not submit its 
116.35  plan to the office of strategic and long-range planning until 
116.36  the metropolitan council has had 60 days for review and comment 
117.1   on the plan.  
117.2      Sec. 21.  [LIMITATION ON PLAN AMENDMENT.] 
117.3      The county or joint powers board shall not amend its plan 
117.4   for an area inside an urban growth area that is outside a 
117.5   municipality's jurisdiction without the municipality's approval. 
117.6      Sec. 22.  [EFFECTIVE DATE.] 
117.7      This article is effective the day following final enactment.
117.8                              ARTICLE 5 
117.9                           MUNICIPAL BOARD 
117.10     Section 1.  Minnesota Statutes 1996, section 115.49, is 
117.11  amended by adding a subdivision to read: 
117.12     Subd. 2a.  [EXTENSION OF SERVICE.] If a determination or 
117.13  order is made by the pollution control agency under this section 
117.14  that cooperation by contract is necessary and feasible between a 
117.15  municipality and an unincorporated area located outside the 
117.16  existing corporate limits of a municipality, the municipality 
117.17  being required to provide or extend through a contract a 
117.18  governmental service to an unincorporated area, during the 
117.19  statutory 90-day period provided in this section to formulate a 
117.20  contract, may in the alternative to formulating a service 
117.21  contract to provide or extend the service, declare the 
117.22  unincorporated area as described in the pollution control 
117.23  agency's determination letter or order annexed to the 
117.24  municipality under section 414.0335. 
117.25     Sec. 2.  Minnesota Statutes 1996, section 414.0325, 
117.26  subdivision 1, is amended to read: 
117.27     Subdivision 1.  [INITIATING THE PROCEEDING.] One or more 
117.28  townships and one or more municipalities, by joint resolution, 
117.29  may designate an unincorporated area as in need of orderly 
117.30  annexation.  The joint resolution will confer jurisdiction on 
117.31  the board over annexations in the designated area and over the 
117.32  various provisions in said agreement by submission of said joint 
117.33  resolution to the executive director.  The resolution shall 
117.34  include a description of the designated area and the reasons for 
117.35  designation.  Thereafter, an annexation of any part of the 
117.36  designated area may be initiated by: 
118.1      (1) submitting to the executive director a resolution of 
118.2   any signatory to the joint resolution; or 
118.3      (2) the board of its own motion; or 
118.4      (3) as provided in section 414.033, subdivision 2a. 
118.5      Whenever the pollution control agency or other a state 
118.6   agency pursuant to sections 115.03, 115.071, 115.49, or any law 
118.7   giving a state agency similar powers other than the pollution 
118.8   control agency, orders a municipality to extend a municipal 
118.9   service to an area, such an order will confer jurisdiction on 
118.10  the Minnesota municipal board to consider designation of the 
118.11  area for orderly annexation. 
118.12     If a joint resolution designates an area as in need of 
118.13  orderly annexation and states that no alteration of its stated 
118.14  boundaries is appropriate, the board may review and comment, but 
118.15  may not alter the boundaries.  
118.16     If a joint resolution designates an area as in need of 
118.17  orderly annexation, provides for the conditions for its 
118.18  annexation, and states that no consideration by the board is 
118.19  necessary, the board may review and comment, but shall, within 
118.20  30 days, order the annexation in accordance with the terms of 
118.21  the resolution.  
118.22     Sec. 3.  Minnesota Statutes 1996, section 414.033, 
118.23  subdivision 2b, is amended to read: 
118.24     Subd. 2b.  [NOTICE REQUIRED.] Before a municipality may 
118.25  adopt an ordinance under subdivision 2, clause (2), (3), or (4), 
118.26  or subdivision 2a, a municipality must hold a public hearing and 
118.27  give 30 days' written notice by certified mail to the town or 
118.28  towns affected by the proposed ordinance and to all landowners 
118.29  within and contiguous to the area to be annexed.  
118.30     Sec. 4.  Minnesota Statutes 1996, section 414.033, 
118.31  subdivision 11, is amended to read: 
118.32     Subd. 11.  [FLOODPLAIN; SHORELAND AREA.] When a 
118.33  municipality declares land annexed to the municipality under 
118.34  subdivision 2, clause (3), or subdivision 2a, and the land is 
118.35  within a designated floodplain, as provided by section 103F.111, 
118.36  subdivision 4, or a shoreland area, as provided by section 
119.1   103F.205, subdivision 4, the municipality shall adopt or amend 
119.2   its land use controls to conform to chapter 103F, and any new 
119.3   development of the annexed land shall be subject to chapter 103F.
119.4      Sec. 5.  Minnesota Statutes 1996, section 414.033, 
119.5   subdivision 12, is amended to read: 
119.6      Subd. 12.  [PROPERTY TAXES.] When a municipality annexes 
119.7   land under subdivision 2, clause (2), (3), or (4), or 
119.8   subdivision 2a, property taxes payable on the annexed land shall 
119.9   continue to be paid to the affected town or towns for the year 
119.10  in which the annexation becomes effective.  Thereafter, property 
119.11  taxes on the annexed land shall be paid to the municipality.  In 
119.12  the first year following the year the land was annexed, the 
119.13  municipality shall make a cash payment to the affected town or 
119.14  towns in an amount equal to 90 percent of the property taxes 
119.15  paid in the year the land was annexed; in the second year, an 
119.16  amount equal to 70 percent of the property taxes paid in the 
119.17  year the land was annexed; in the third year, an amount equal to 
119.18  50 percent of the property taxes paid in the year the land was 
119.19  annexed; in the fourth year, an amount equal to 30 percent of 
119.20  the property taxes paid in the year the land was annexed; and in 
119.21  the fifth year, an amount equal to ten percent of the property 
119.22  taxes paid in the year the land was annexed.  The municipality 
119.23  and the affected township may agree to a different payment. 
119.24     Sec. 6.  [414.0335] [ORDERED GOVERNMENTAL SERVICE 
119.25  EXTENSION; ANNEXATION BY ORDINANCE.] 
119.26     If a determination or order by the pollution control 
119.27  agency, under section 115.49 or other similar statute is made, 
119.28  that cooperation by contract is necessary and feasible between a 
119.29  municipality and an unincorporated area located outside the 
119.30  existing corporate limits of a municipality, the municipality 
119.31  required to provide or extend through a contract a governmental 
119.32  service to an unincorporated area, during the statutory 90-day 
119.33  period provided in section 115.49 to formulate a contract, may 
119.34  in the alternative to formulating a service contract to provide 
119.35  or extend the service, declare the unincorporated area described 
119.36  in the pollution control agency's determination letter or order 
120.1   annexed to the municipality by adopting an ordinance and 
120.2   submitting it to the municipal board or its successor.  The 
120.3   municipal board or its successor may review and comment on the 
120.4   ordinance but shall approve the ordinance within 30 days of 
120.5   receipt.  The ordinance is final and the annexation is effective 
120.6   on the date the municipal board or its successor approves the 
120.7   ordinance.  Thereafter, the city shall amend its comprehensive 
120.8   plan and official controls in accordance with chapter 462. 
120.9      Sec. 7.  [414.10] [ALTERNATIVE PROCESS OF DISPUTE 
120.10  RESOLUTION.] 
120.11     Subdivision 1.  [DEFINITION.] For the purposes of 
120.12  subdivision 2, a "party" or "parties" means a property owner or 
120.13  the governing body or town board of a jurisdiction that files an 
120.14  initiating document or a timely objection pursuant to this 
120.15  chapter, and the governing body or town board of the 
120.16  jurisdiction or jurisdictions in which the subject area is 
120.17  located. 
120.18     Subd. 2.  [CHAPTER 572A PROCESS.] As an alternative to the 
120.19  procedure provided by this chapter, a party filing an initiating 
120.20  document or timely objection with the municipal board may file 
120.21  with the bureau of mediation services a written request for 
120.22  mediation within 30 days of the filing as provided in section 
120.23  572A.015.  The request for mediation must contain the written 
120.24  consent of all parties to have the dispute settled through the 
120.25  process provided by chapter 572A.  The filing party must also 
120.26  file written notice with the municipal board notifying the board 
120.27  that all parties have agreed to use the dispute resolution 
120.28  process in chapter 572A. 
120.29     Sec. 8.  [414.11] [MUNICIPAL BOARD SUNSET.] 
120.30     The municipal board shall terminate on December 31, 1999, 
120.31  and all of its authority and duties under this chapter shall be 
120.32  transferred to the office of strategic and long-range planning 
120.33  according to section 15.039. 
120.34     Sec. 9.  [REPEALER.] 
120.35     Minnesota Statutes 1996, section 414.033, subdivision 2a, 
120.36  is repealed. 
121.1      Sec. 10.  [EFFECTIVE DATE.] 
121.2      Sections 1 to 8 are effective the day following final 
121.3   enactment.  Section 9 is effective July 1, 1997.  
121.4                              ARTICLE 6 
121.5                          DISPUTE RESOLUTION 
121.6      Section 1.  [572A.01] [COMPREHENSIVE PLANNING DISPUTES; 
121.7   MEDIATION.] 
121.8      Subdivision 1.  [FILING.] In the event of a dispute between 
121.9   a county and the office of strategic and long-range planning 
121.10  under section 394.232 or a county and a city under section 
121.11  462.3535, regarding the development, content, or approval of a 
121.12  community-based comprehensive land use plan, an aggrieved party 
121.13  may file a written request for mediation, as provided in 
121.14  subdivision 2, with the bureau of mediation services at any time 
121.15  prior to a final action on a community-based comprehensive plan 
121.16  or within 30 days of a final action on a community-based 
121.17  comprehensive plan. 
121.18     Subd. 2.  [MEDIATION.] Within ten days of receiving a 
121.19  request for mediation in subdivision 1, the bureau of mediation 
121.20  services shall provide written notice of the request for 
121.21  mediation to the parties and provide a list of neutrals 
121.22  experienced in land use planning or local government issues 
121.23  obtained from the supreme court, Minnesota municipal board, 
121.24  bureau of mediation services, Minnesota state bar association, 
121.25  Hennepin county bar association, office of dispute resolution, 
121.26  and others.  Within 30 days thereafter, the affected parties 
121.27  shall select a mediator from the list of neutrals or someone 
121.28  else acceptable to the parties and submit to mediation for a 
121.29  period of 30 days facilitated by the bureau.  If the dispute 
121.30  remains unresolved after the close of the 30-day mediation 
121.31  period, the bureau shall prepare a report of its recommendations 
121.32  and transmit the report within 30 days to the parties.  Within 
121.33  60 days after the date of issuance of the mediator's report, the 
121.34  dispute shall be submitted to binding arbitration as provided in 
121.35  this chapter.  The mediator's report submitted to the parties is 
121.36  informational only and is not admissible in arbitration. 
122.1      Sec. 2.  [572A.015] [CHAPTER 414 DISPUTES; MEDIATION.] 
122.2      Subdivision 1.  [FILING.] As provided by section 414.10, if 
122.3   an initiating document or timely objection under chapter 414 is 
122.4   filed with the municipal board, the filing party, jurisdiction, 
122.5   or jurisdictions may also file a written request for mediation 
122.6   with the bureau of mediation services within 30 days of filing 
122.7   the initiating document or timely objection.  The request for 
122.8   mediation must contain the written consent to the mediation and 
122.9   arbitration process by all the parties, as defined in section 
122.10  414.10, subdivision 1. 
122.11     Subd. 2.  [MEDIATION.] Within ten days of receiving a 
122.12  request for mediation, the bureau shall provide written notice 
122.13  of the request for mediation to the parties and provide a list 
122.14  of neutrals experienced in land use planning and local 
122.15  government issues obtained from the supreme court, Minnesota 
122.16  municipal board, bureau of mediation services, Minnesota state 
122.17  bar association, Hennepin county bar association, office of 
122.18  dispute resolution and others.  Within 30 days thereafter, the 
122.19  affected parties, as defined in section 414.10, subdivision 1, 
122.20  shall select a mediator from the list of neutrals or someone 
122.21  else acceptable to the parties and submit to mediation for a 
122.22  period of 30 days facilitated by the bureau.  If the dispute 
122.23  remains unresolved after the close of the 30-day mediation 
122.24  period, the bureau shall prepare a report of its recommendations 
122.25  and transmit the report within 30 days to the parties.  Within 
122.26  60 days after the date of issuance of the mediator's report, the 
122.27  dispute shall be submitted to binding arbitration as provided in 
122.28  this chapter.  The mediator's report submitted to the parties is 
122.29  informational only and is not admissible in arbitration. 
122.30     Sec. 3.  [572A.02] [ARBITRATION.] 
122.31     Subdivision 1.  [SUBMITTAL TO BINDING ARBITRATION.] If a 
122.32  dispute remains unresolved after the close of mediation, the 
122.33  dispute shall be submitted to binding arbitration within 60 days 
122.34  of issuance of the mediation report pursuant to the terms of 
122.35  this section and the Uniform Arbitration Act, sections 
122.36  572.08-572.30, except the period may be extended for an 
123.1   additional 15 days as provided in this section.  In the event of 
123.2   a conflict between the provisions of the Uniform Arbitration Act 
123.3   and this section, this section controls. 
123.4      Subd. 2.  [APPOINTMENT OF PANEL.] (a) The parties shall 
123.5   each appoint one qualified arbitrator within 30 days of issuance 
123.6   of the mediation report.  If a party does not appoint an 
123.7   arbitrator within 30 days, the bureau of mediation services 
123.8   shall appoint a qualified arbitrator from the list of neutrals 
123.9   under sections 572A.01, subdivision 2, and 572A.015, subdivision 
123.10  2, or someone else for the party.  The parties shall notify the 
123.11  bureau prior to the close of the 30-day appointment period of 
123.12  the name and address of their respective appointed arbitrator.  
123.13  Each party is responsible for the fees and expenses for the 
123.14  arbitrator it selects.  
123.15     (b) After appointment of the two arbitrators to the 
123.16  arbitration panel by the parties, or by the bureau should one or 
123.17  both of the parties fail to act, the two appointed arbitrators 
123.18  shall appoint a third arbitrator who must be learned in the law, 
123.19  within 15 days of the close of the initial 30-day arbitrator 
123.20  appointment period.  If the arbitrators cannot agree on the 
123.21  selection of the third arbitrator within 15 days, the 
123.22  arbitrators shall jointly submit a request to the district court 
123.23  of the county in which the disputed area is located in 
123.24  accordance with the selection procedures established in section 
123.25  572.10.  Within 15 days of receipt of an application by the 
123.26  district court, the district court shall select a neutral 
123.27  arbitrator and notify the parties and the bureau of mediation 
123.28  services of the name and address of the selected arbitrator.  
123.29  The fees and expenses of the third arbitrator shall be shared 
123.30  equally by the parties.  The third appointed arbitrator shall 
123.31  act as chair of the arbitration panel and shall conduct the 
123.32  proceedings.  If the district court selects the third 
123.33  arbitrator, the date required for first hearing the matter may 
123.34  be extended an additional 15 days. 
123.35     Subd. 3.  [HEARING.] Except as otherwise provided, within 
123.36  60 days, the matter must be brought on for hearing in accordance 
124.1   with section 572.12.  The bureau of mediation services shall 
124.2   provide for the proceedings to occur in the county in which the 
124.3   majority of the affected property is located. 
124.4      Subd. 4.  [CONTRACTS; INFORMATION.] The arbitration panel 
124.5   shall have authority to contract with regional, state, county, 
124.6   or local planning commissions or to hire expert consultants to 
124.7   provide specialized information and assistance.  Any member of 
124.8   the panel conducting or participating in any hearing shall have 
124.9   the power to administer oaths and affirmations, to issue 
124.10  subpoenas, to compel the attendance and testimony of witnesses, 
124.11  and the production of papers, books, and documents.  Any costs 
124.12  related to this subdivision shall be shared equally by the 
124.13  parties. 
124.14     Subd. 5.  [DECISION FACTORS.] In comprehensive planning 
124.15  disputes, the arbitration panel shall consider the goals stated 
124.16  in section 4A.08 and the following factors in making a 
124.17  decision.  In all other disputes brought under this section, the 
124.18  arbitration panel shall consider the following factors in making 
124.19  a decision: 
124.20     (1) present population and number of households, past 
124.21  population, and projected population growth of the subject area 
124.22  and adjacent units of local government; 
124.23     (2) quantity of land within the subject area and adjacent 
124.24  units of local government; and natural terrain including 
124.25  recognizable physical features, general topography, major 
124.26  watersheds, soil conditions, and such natural features as 
124.27  rivers, lakes and major bluffs; 
124.28     (3) degree of contiguity of the boundaries between the 
124.29  municipality and the subject area; 
124.30     (4) present pattern of physical development, planning, and 
124.31  intended land uses in the subject area and the municipality 
124.32  including residential, industrial, commercial, agricultural, and 
124.33  institutional land uses and the impact of the proposed action on 
124.34  those land uses; 
124.35     (5) the present transportation network and potential 
124.36  transportation issues, including proposed highway development; 
125.1      (6) land use controls and planning presently being utilized 
125.2   in the municipality and the subject area, including 
125.3   comprehensive plans for development in the area and plans and 
125.4   policies of the metropolitan council, and whether there are 
125.5   inconsistencies between proposed development and existing land 
125.6   use controls and the reasons therefore; 
125.7      (7) existing levels of governmental services being provided 
125.8   in the municipality and the subject area, including water and 
125.9   sewer service, fire rating and protection, law enforcement, 
125.10  street improvements and maintenance, administrative services, 
125.11  and recreational facilities and the impact of the proposed 
125.12  action on the delivery of said services; 
125.13     (8) existing or potential environmental problems and 
125.14  whether the proposed action is likely to improve or resolve 
125.15  these problems; 
125.16     (9) plans and programs by the municipality for providing 
125.17  needed governmental services to the subject area; 
125.18     (10) an analysis of the fiscal impact on the municipality, 
125.19  the subject area, and adjacent units of local government, 
125.20  including net tax capacity and the present bonded indebtedness, 
125.21  and the local tax rates of the county, school district, and 
125.22  township; 
125.23     (11) relationship and effect of the proposed action on 
125.24  affected and adjacent school districts and communities; 
125.25     (12) adequacy of town government to deliver services to the 
125.26  subject area; 
125.27     (13) analysis of whether necessary governmental services 
125.28  can best be provided through the proposed action or another type 
125.29  of boundary adjustment; and 
125.30     (14) if only a part of a township is annexed, the ability 
125.31  of the remainder of the township to continue or the feasibility 
125.32  of it being incorporated separately or being annexed to another 
125.33  municipality. 
125.34  Any party to the proceeding may present evidence and testimony 
125.35  on any of the above factors at the hearing on the matter. 
125.36     Subd. 6.  [DECISION.] The arbitrators, after a hearing on 
126.1   the matter, shall make a decision regarding the dispute within 
126.2   60 days and transmit an order to the parties and the office of 
126.3   strategic and long-range planning or the municipal board.  
126.4   Unless appealed by an aggrieved party within 30 days of receipt 
126.5   of the arbitration panel's order by the municipal board, the 
126.6   municipal board shall execute an order in accordance with the 
126.7   arbitration panel's order and shall cause copies of the same to 
126.8   be mailed to all parties entitled to mailed notice, the 
126.9   secretary of state, the department of revenue, the state 
126.10  demographer, individual property owners if initiated in that 
126.11  manner, the affected county auditor, and any other party of 
126.12  record.  The affected county auditor shall record the order 
126.13  against the affected property. 
126.14     Sec. 4.  [572A.03] [ARBITRATION PANEL DECISION STANDARDS.] 
126.15     Subdivision 1.  [DECISION STANDARDS.] The arbitration 
126.16  panel, based upon the factors in section 572A.02, subdivision 5, 
126.17  shall decide the matter based upon the decision standards in 
126.18  subdivisions 2 to 6.  
126.19     Subd. 2.  [COMPREHENSIVE LAND USE PLANNING.] For 
126.20  comprehensive land use planning disputes under section 462.3535, 
126.21  if a community-based comprehensive plan addresses the goals of 
126.22  section 4A.08 and the arbitrators find that the city's projected 
126.23  estimates found in its comprehensive plan are reasonable with 
126.24  respect to an identified urban growth area, the arbitration 
126.25  panel may order approval of the city plan.  If the order is to 
126.26  approve the community-based comprehensive plan, the order shall 
126.27  contain notice directing the county to approve the city plan 
126.28  within ten days of receipt of the arbitration order.  The city 
126.29  shall, thereafter, adopt the plan.  If the order is to deny the 
126.30  plan, the arbitration order shall state the reasons for the 
126.31  denial in the order and transmit the order to the city, county, 
126.32  and the office of strategic and long-range planning.  The city 
126.33  shall within 30 days of receipt of the order amend its plan and 
126.34  resubmit the plan to the county for review and approval under 
126.35  this subdivision.  The county shall not unreasonably withhold 
126.36  approval of the plan if the resubmitted city plan is in keeping 
127.1   with the arbitration panel's order. 
127.2      Subd. 3.  [MUNICIPAL INCORPORATIONS.] For municipal 
127.3   incorporations under section 414.02, the arbitration panel may 
127.4   order the incorporation if it finds that:  (1) the property to 
127.5   be incorporated is now, or is about to become, urban or suburban 
127.6   in character; (2) that the existing township form of government 
127.7   is not adequate to protect the public health, safety, and 
127.8   welfare; or (3) the proposed incorporation would be in the best 
127.9   interests of the area under consideration.  The panel may deny 
127.10  the incorporation if the area, or a part of it, would be better 
127.11  served by annexation to an adjacent municipality.  The panel may 
127.12  alter the boundaries of the proposed incorporation by increasing 
127.13  or decreasing the area to be incorporated so as to include only 
127.14  that property which is now, or is about to become, urban or 
127.15  suburban in character, or may exclude property that may be 
127.16  better served by another unit of government.  The panel may also 
127.17  alter the boundaries of the proposed incorporation so as to 
127.18  follow visible, clearly recognizable physical features for 
127.19  municipal boundaries.  In all cases, the panel shall set forth 
127.20  the factors which are the basis for the decision.  
127.21     Subd. 4.  [ANNEXATIONS OF UNINCORPORATED PROPERTY.] For 
127.22  annexations of unincorporated property under section 414.031 or 
127.23  414.033, subdivisions 3 and 5, the arbitration panel may order 
127.24  the annexation:  (1) if it finds that the subject area is now, 
127.25  or is about to become, urban or suburban in character; (2) if it 
127.26  finds that municipal government in the area proposed for 
127.27  annexation is required to protect the public health, safety, and 
127.28  welfare; or (3) if it finds that the annexation would be in the 
127.29  best interest of the subject area.  If only a part of a township 
127.30  is to be annexed, the panel shall consider whether the remainder 
127.31  of the township can continue to carry on the functions of 
127.32  government without undue hardship.  The panel shall deny the 
127.33  annexation if it finds that the increase in revenues for the 
127.34  annexing municipality bears no reasonable relation to the 
127.35  monetary value of benefits conferred upon the annexed area.  The 
127.36  panel may deny the annexation:  (1) if it appears that 
128.1   annexation of all or a part of the property to an adjacent 
128.2   municipality would better serve the interests of the residents 
128.3   of the property; or (2) if the remainder of the township would 
128.4   suffer undue hardship. 
128.5      The panel may alter the boundaries of the area to be 
128.6   annexed by increasing or decreasing the area so as to include 
128.7   only that property which is now or is about to become urban or 
128.8   suburban in character or to add property of that character 
128.9   abutting the area proposed for annexation in order to preserve 
128.10  or improve the symmetry of the area, or to exclude property that 
128.11  may better be served by another unit of government.  The panel 
128.12  may also alter the boundaries of the proposed annexation so as 
128.13  to follow visible, clearly recognizable physical features.  If 
128.14  the panel determines that part of the area would be better 
128.15  served by another municipality or township, the panel may 
128.16  initiate and approve annexation on its own motion by conducting 
128.17  further hearings.  In all cases, the arbitration panel shall set 
128.18  forth the factors that are the basis for the decision. 
128.19     Subd. 5.  [ORDERLY ANNEXATIONS WITHIN A DESIGNATED 
128.20  AREA.] For orderly annexations within a designated area under 
128.21  section 414.0325, which require a hearing, the arbitration panel 
128.22  may order the annexation:  (1) if it finds that the subject area 
128.23  is now or is about to become urban or suburban in character and 
128.24  that the annexing municipality is capable of providing the 
128.25  services required by the area within a reasonable time; (2) if 
128.26  it finds that the existing township form of government is not 
128.27  adequate to protect the public health, safety, and welfare; or 
128.28  (3) if it finds that annexation would be in the best interests 
128.29  of the subject area.  The board may deny the annexation if it 
128.30  conflicts with any provision of the joint agreement.  The board 
128.31  may alter the boundaries of the proposed annexation by 
128.32  increasing or decreasing the area so as to include that property 
128.33  within the designated area which is in need of municipal 
128.34  services or will be in need of municipal services. 
128.35     If the annexation is denied, no proceeding for the 
128.36  annexation of substantially the same area may be initiated 
129.1   within two years from the date of the board's order unless the 
129.2   new proceeding is initiated by a majority of the area's property 
129.3   owners and the petition is supported by affected parties to the 
129.4   resolution.  In all cases, the arbitration panel shall set forth 
129.5   the factors which are the basis for the decision. 
129.6      Subd. 6.  [CONSOLIDATION OF MUNICIPALITIES.] For municipal 
129.7   consolidations under section 414.041, the arbitration panel 
129.8   shall consider and may accept, amend, return to the commission 
129.9   for amendment or further study, or reject the commission's 
129.10  findings and recommendations based upon the panel's written 
129.11  determination of what is in the best interests of the affected 
129.12  municipalities.  The panel shall order the consolidation if it 
129.13  finds that consolidation will be for the best interests of the 
129.14  municipalities.  In all cases, the arbitration panel shall set 
129.15  forth the factors that are the basis for the decision.  
129.16     Subd. 7.  [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] For 
129.17  detachments of property from a municipality under section 
129.18  414.06, the arbitration panel may order the detachment if it 
129.19  finds that the requisite number of property owners have signed 
129.20  the petition if initiated by the property owners, that the 
129.21  property is rural in character and not developed for urban 
129.22  residential, commercial, or industrial purposes, that the 
129.23  property is within the boundaries of the municipality and abuts 
129.24  a boundary, that the detachment would not unreasonably affect 
129.25  the symmetry of the detaching municipality, and that the land is 
129.26  not needed for reasonably anticipated future development.  The 
129.27  panel shall deny the detachment if it finds that the remainder 
129.28  of the municipality cannot continue to carry on the functions of 
129.29  government without undue hardship.  The panel shall have 
129.30  authority to decrease the area of property to be detached and 
129.31  may include only a part of the proposed area to be detached.  If 
129.32  the tract abuts more than one township, it shall become a part 
129.33  of each township, being divided by projecting through it the 
129.34  boundary line between the townships.  The detached area may be 
129.35  relieved of the primary responsibility for existing indebtedness 
129.36  of the municipality and be required to assume the indebtedness 
130.1   of the township of which it becomes a part, in the proportion 
130.2   that the panel deems just and equitable considering the amount 
130.3   of taxes due and delinquent and the indebtedness of each 
130.4   township and the municipality affected, if any, and for what 
130.5   purpose the indebtedness was incurred, in relation to the 
130.6   benefit inuring to the detached area as a result of the 
130.7   indebtedness and the last net tax capacity of the taxable 
130.8   property in each township and municipality. 
130.9      Subd. 8.  [CONCURRENT DETACHMENT AND ANNEXATION OF 
130.10  INCORPORATED PROPERTY.] For concurrent detachment and annexation 
130.11  of incorporated property under section 414.061, subdivisions 4 
130.12  and 5, the arbitration panel shall order the proposed action if 
130.13  it finds that it will be for the best interests of the 
130.14  municipalities and the property owner.  In all cases, the 
130.15  arbitration panel shall set forth the factors which are the 
130.16  basis for the decision. 
130.17     Sec. 5.  [EFFECTIVE DATE.] 
130.18     This article is effective the day following final enactment.