1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; making supplemental 1.3 appropriations and reductions; imposing certain 1.4 conditions; modifying provisions relating to state 1.5 government; amending Minnesota Statutes 1998, sections 1.6 3.099, subdivision 3; 15.0591, subdivision 2; 1.7 15A.0815, subdivisions 2 and 3; 16A.10, by adding a 1.8 subdivision; 16A.11, subdivision 3; 16A.124, by adding 1.9 a subdivision; 16A.126, subdivision 2; 16B.052; 1.10 16B.31, by adding a subdivision; 16B.335, subdivision 1.11 5; 16B.42, subdivisions 2 and 3; 16B.48, subdivision 1.12 4; 16B.485; 43A.38, subdivision 1; 85A.02, subdivision 1.13 5a; 119A.05, subdivision 1; 138.17, subdivision 10; 1.14 179A.18, subdivision 1; 181.932, subdivision 1; 1.15 193.143; 221.173; 256.9753, subdivision 3; 349A.02, 1.16 subdivision 1; 352.91, subdivision 3c, and by adding 1.17 subdivisions; 352D.02, subdivision 1; 352D.04, 1.18 subdivision 2; 356.30, subdivision 1; 422A.101, 1.19 subdivision 3; 471.345, by adding a subdivision; 1.20 490.121, subdivision 4, and by adding a subdivision; 1.21 490.123, subdivisions 1a and 1b; and 490.124, 1.22 subdivision 1; Minnesota Statutes 1999 Supplement, 1.23 sections 3.971, subdivision 8; 10A.01, subdivisions 2 1.24 and 21; 16A.103, subdivision 1; 16A.129, subdivision 1.25 3; 16B.616, subdivisions 3 and 4; 125B.21, subdivision 1.26 1; 179A.04, subdivision 3; 181.932, subdivision 2; and 1.27 473.3993, subdivision 3; Laws 1999, chapter 250, 1.28 article 1, sections 11; 14, subdivision 3; 18; and 1.29 116; proposing coding for new law in Minnesota 1.30 Statutes, chapters 3; 5; 10A; 16A; 43A; and 473; 1.31 proposing coding for new law as Minnesota Statutes, 1.32 chapter 325G; repealing Minnesota Statutes 1998, 1.33 sections 16B.37, subdivisions 1, 2, and 3; 16B.88; 1.34 16E.01, subdivisions 2 and 3; 16E.03, subdivisions 1 1.35 and 3; 16E.04, subdivision 1; 16E.05; 16E.06; 16E.07, 1.36 subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 11; 1.37 136F.59, subdivision 3; 352.91, subdivision 4; 1.38 465.795; 465.796; 465.797, subdivisions 2, 3, 4, 5, 6, 1.39 and 7; 465.7971; 465.798; 465.799; 465.801; 465.802; 1.40 465.803; 465.81; 465.82, subdivisions 1, 2, and 3; 1.41 465.83; 465.84; 465.85; 465.86; 465.87; and 465.88; 1.42 Minnesota Statutes 1999 Supplement, sections 16E.01, 1.43 subdivision 1; 16E.02; 16E.03, subdivisions 2, 4, 5, 1.44 6, 7, and 8; 16E.04, subdivision 2; 16E.07, 1.45 subdivision 4; 16E.08; 43A.318; 465.797, subdivisions 1.46 1 and 5a; 465.82, subdivision 4; Laws 1999, chapters 2.1 135, section 9; and 250, article 1, section 15, 2.2 subdivision 4; Minnesota Rules, parts 7672.0100; 2.3 7672.0200; 7672.0300; 7672.0400; 7672.0500; 7672.0600; 2.4 7672.0700; 7672.0800; 7672.0900; 7672.1000; 7672.1100; 2.5 7672.1200; 7672.1300; 7674.0100; 7674.0200; 7674.0300; 2.6 7674.0400; 7674.0500; 7674.0600; 7674.0700; 7674.0800; 2.7 7674.0900; 7674.1000; 7674.1100; and 7674.1200. 2.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.9 ARTICLE 1 2.10 APPROPRIATIONS 2.11 Section 1. [APPROPRIATIONS.] 2.12 The sums shown in the columns marked "APPROPRIATIONS" are 2.13 appropriated from the general fund, or any other fund named, to 2.14 the agencies and for the purposes specified in this act, to be 2.15 available for the fiscal years indicated for each purpose. The 2.16 figures "2000" and "2001" mean that the appropriation or 2.17 appropriations listed under them are available for the fiscal 2.18 year ending June 30, 2000, or June 30, 2001, respectively, and 2.19 if an earlier appropriation was made for that purpose for that 2.20 year, the appropriation in this act is added to it. Where a 2.21 dollar amount appears in parentheses, it means a reduction of an 2.22 earlier appropriation for that purpose for that year. 2.23 SUMMARY BY FUND 2.24 BIENNIAL 2.25 2000 2001 TOTAL 2.26 General $ (3,191,000) $ (5,914,000) $ (9,105,000) 2.27 TOTAL $ (3,191,000) $ (5,914,000) $ (9,105,000) 2.28 APPROPRIATIONS 2.29 Available for the Year 2.30 Ending June 30 2.31 2000 2001 2.32 Sec. 2. LEGISLATURE $ 50,000 $ 2.33 $50,000 is for the legislative 2.34 commission on Minnesota-Ontario matters 2.35 and is available only upon 2.36 demonstration of a dollar-for-dollar 2.37 match from nonstate sources. This 2.38 appropriation is available until June 2.39 30, 2001. 2.40 From amounts previously appropriated to 2.41 the house of representatives and 2.42 carried forward into the biennium 2.43 beginning July 1, 1999, $1,500,000 is 2.44 canceled to the general fund. 2.45 From amounts previously appropriated to 2.46 the senate and carried forward into the 3.1 biennium beginning July 1, 1999, 3.2 $1,500,000 is canceled to the general 3.3 fund. 3.4 The house of representatives must 3.5 minimize the number of members who are 3.6 required to change offices if there is 3.7 a change in which party is the majority 3.8 caucus for the 2001-2002 legislative 3.9 session. 3.10 Sec. 3. SECRETARY OF STATE 2,000,000 3.11 To construct and maintain the Uniform 3.12 Commercial Code central filing system 3.13 required by H.F. No. 1394, if enacted, 3.14 to be available until June 30, 2001. 3.15 Beginning with fiscal year 2002, the 3.16 general fund base for the office of the 3.17 secretary of state must be reduced by 3.18 $2,300,000 in fiscal year 2002 and 3.19 $2,300,000 in fiscal year 2003. 3.20 Sec. 4. OFFICE OF STRATEGIC AND 3.21 LONG-RANGE PLANNING (2,000,000) 3.22 This reduction is for a permanent 3.23 reduction in staff. In implementing 3.24 this reduction, the commissioner must 3.25 not reduce the amounts budgeted for the 3.26 state demographer, the land management 3.27 information center, or the 3.28 environmental quality board by more 3.29 than five percent each. 3.30 The office of strategic and long-range 3.31 planning must develop a plan for 3.32 contracting with the University of 3.33 Minnesota, other educational 3.34 institutions, and other individuals or 3.35 entities, for strategic planning 3.36 activities for the state. This plan 3.37 shall be submitted to the legislature 3.38 by January 15, 2001. 3.39 Sec. 5. ADMINISTRATION (2,000,000) (3,049,000) 3.40 Of this amount, $2,000,000 in fiscal 3.41 year 2000 is a reduction to the 3.42 appropriation for year 2000 contingency 3.43 funds authorized in Laws 1999, chapter 3.44 250, article 1, section 12, subdivision 3.45 4, $342,000 in fiscal year 2001 is a 3.46 reduction for the elimination of the 3.47 office of citizenship and volunteer 3.48 services, and $2,707,000 in fiscal year 3.49 2001 is a reduction for the elimination 3.50 of the office of technology. 3.51 The appropriation for the Alliance With 3.52 Youth must not be reduced. The 3.53 Alliance With Youth is a separate 3.54 activity in the department of 3.55 administration. 3.56 If any portion of the $2,000,000 3.57 reduction in year 2000 contingency 3.58 funds has been expended or encumbered 3.59 before the effective date of this 3.60 section, other appropriations to the 4.1 department for fiscal year 2001 are 4.2 reduced by the amount of these 4.3 expenditures or encumbrances. 4.4 Sec. 6. CAMPAIGN FINANCE AND 4.5 DISCLOSURE BOARD 48,000 4.6 This appropriation is for legal costs 4.7 for the board's defense of a 4.8 constitutional challenge, and for 4.9 expenses associated with implementation 4.10 of amendments made to Minnesota 4.11 Statutes, section 10A.01, and of new 4.12 Minnesota Statutes, section 10A.035. 4.13 This appropriation is available until 4.14 June 30, 2001. 4.15 Sec. 7. GAMBLING CONTROL 4.16 BOARD 45,000 45,000 4.17 For workers' compensation claims. 4.18 Money not expended in the first year is 4.19 available for expenditure in the second 4.20 year. 4.21 Sec. 8. MINNEAPOLIS EMPLOYEES 4.22 RETIREMENT FUND (1,334,000) (1,892,000) 4.23 This is a one-time reduction for fiscal 4.24 years 2000 and 2001 only in payments 4.25 made to the Minneapolis employees 4.26 retirement fund under Minnesota 4.27 Statutes, section 422A.101, subdivision 4.28 3. 4.29 Sec. 9. BOARD OF GOVERNMENT 4.30 INNOVATION AND COOPERATION (1,018,000) 4.31 This reduction is for elimination of 4.32 the board. 4.33 Sec. 10. [3.051] [DAILY SESSIONS.] 4.34 The rules of proceedings adopted by the house of 4.35 representatives and the senate must require that both bodies 4.36 convene in daily sessions at the identical regular hour. 4.37 Sec. 11. [3.052] [RULES.] 4.38 The house of representatives and the senate shall adopt 4.39 rules of procedure that do not require the house in which a bill 4.40 originates to ask for the appointment of a conference committee 4.41 on the bill when it refuses to concur in an amendment to the 4.42 bill by the other house. The rules shall permit either house to 4.43 reconsider and further amend a bill, or the other house's 4.44 amendment, until one of the houses chooses instead to ask for 4.45 the appointment of a conference committee on the bill. 4.46 Sec. 12. Minnesota Statutes 1998, section 3.099, 4.47 subdivision 3, is amended to read: 5.1 Subd. 3. [LEADERS.] The senate committee on rules and 5.2 administrationfor the senate and the house committee on rules5.3and legislative administration for the housemayeachdesignate 5.4for their respective bodyup to three leadership positions to 5.5 receive up to 140 percent of the compensation of other members. 5.6 The speaker of the house of representatives, the house majority 5.7 and minority leaders, and the chair of the house ways and means 5.8 committee shall receive 140 percent of the compensation of other 5.9 members. 5.10 At the commencement of each biennial legislative session, 5.11 each house of the legislature shall adopt a resolution 5.12 designating its majority and minority leader. 5.13 The majority leader is the person elected by the caucus of 5.14 members in each house which is its largest political 5.15 affiliation. The minority leader is the person elected by the 5.16 caucus which is its second largest political affiliation. 5.17 Sec. 13. [3.3060] [JOINT STANDING COMMITTEES.] 5.18 The house of representatives and the senate shall adopt 5.19 rules establishing a system of joint standing committees to 5.20 consider and report recommendations on bills introduced in 5.21 either house of the legislature. 5.22 Sec. 14. [3.884] [LEGISLATIVE COMMISSION ON 5.23 MINNESOTA-ONTARIO MATTERS.] 5.24 Subdivision 1. [ESTABLISHMENT.] A legislative advisory 5.25 commission on Minnesota-Ontario matters is established. The 5.26 commission is made up of 12 Minnesota members appointed as 5.27 provided in subdivision 2, with the intent of meeting with a 5.28 like commission of Ontario citizens appointed as provided by the 5.29 appropriate government authority of Ontario for the purpose of 5.30 making recommendations regarding Minnesota-Ontario issues of 5.31 mutual interest involving natural resources, transportation, 5.32 economic development, and social matters. A report and 5.33 appropriate recommendations must be made annually to the 5.34 appointing bodies. 5.35 Subd. 2. [MINNESOTA APPOINTEES.] Six of the Minnesota 5.36 members must be appointed by the speaker of the house, three 6.1 from among the members of the house of representatives and three 6.2 from Minnesota citizens with interest in and knowledge of 6.3 Minnesota-Ontario issues; and six members appointed by the 6.4 subcommittee on committees of the committee on rules and 6.5 administration of the senate, three from among the members of 6.6 the senate and three from Minnesota citizens with an interest in 6.7 and knowledge of Minnesota-Ontario issues. 6.8 Subd. 3. [TERMS.] Minnesota legislative members shall 6.9 serve for the term of the legislative office to which they were 6.10 elected. The terms, compensation, and removal of the 6.11 nonlegislative members of the commission and expiration of the 6.12 commission shall be as provided in section 15.059. 6.13 Subd. 4. [OFFICERS.] There must be cochairs of the 6.14 commission. The Ontario section must have a chair and the 6.15 Minnesota section must have a chair. The Ontario chair must 6.16 conduct meetings held in Canada and the Minnesota chair must 6.17 conduct meetings held in the United States. 6.18 There must be vice-chairs of the respective sections. 6.19 There must be elected one secretary from the commission at large. 6.20 Subd. 5. [STAFF.] The commission may hire the staff 6.21 necessary to carry out its duties. 6.22 Sec. 15. Minnesota Statutes 1999 Supplement, section 6.23 3.971, subdivision 8, is amended to read: 6.24 Subd. 8. [BEST PRACTICES REVIEWS.] (a) The legislative 6.25 auditor shall conduct best practices reviews that examine the 6.26 procedures and practices used to deliver local government 6.27 services, determine the methods of local government service 6.28 delivery, identify variations in cost and effectiveness, and 6.29 identify practices to save money or provide more effective 6.30 service delivery. The legislative auditor shall recommend to 6.31 local governments service delivery methods and practices to 6.32 improve the cost-effectiveness of services.The legislative6.33auditor and the board of government innovation and cooperation6.34shall notify each other of projects being conducted relating to6.35improving local government services.6.36 (b) The commission shall approve local government services 7.1 to be reviewed with advice from an advisory council appointed by 7.2 the legislative auditor and consisting of: 7.3 (1) three representatives from the Association of Minnesota 7.4 Counties; 7.5 (2) three representatives from the League of Minnesota 7.6 Cities; 7.7 (3) two representatives from the Association of 7.8 Metropolitan Municipalities; 7.9 (4) one representative from the Minnesota Association of 7.10 Townships; and 7.11 (5) one representative from the Minnesota Association of 7.12 School Administrators. 7.13 Sec. 16. [5.27] [DEPOSIT OF UCC FEES.] 7.14 Notwithstanding any law to the contrary, all fees received 7.15 by the secretary of state under chapters 336 and 336A must be 7.16 deposited in the Uniform Commercial Code account and are 7.17 continuously appropriated to the secretary of state. This 7.18 deposit must not occur until the Cambridge bank debt service 7.19 account is fully funded. 7.20 Sec. 17. Minnesota Statutes 1999 Supplement, section 7.21 10A.01, subdivision 2, is amended to read: 7.22 Subd. 2. [ADMINISTRATIVE ACTION.] "Administrative action" 7.23 means an action by any official, board, commission or agency of 7.24 the executive branch to enter into a contract for goods or 7.25 services to be paid for by public funds in an amount greater 7.26 than $5,000,000, or adopt, amend, or repeal a rule under chapter 7.27 14. "Administrative action" does not include the application or 7.28 administration of an adopted rule, except in cases of rate 7.29 setting, power plant and powerline siting, and granting of 7.30 certificates of need under section 216B.243. 7.31 Sec. 18. Minnesota Statutes 1999 Supplement, section 7.32 10A.01, subdivision 21, is amended to read: 7.33 Subd. 21. [LOBBYIST.] (a) "Lobbyist" means an individual: 7.34 (1) engaged for pay or other consideration, or authorized 7.35 to spend money by another individual, association, political 7.36 subdivision, or public higher education system, who spends more 8.1 than five hours in any month or more than $250, not including 8.2 the individual's own travel expenses and membership dues, in any 8.3 year, for the purpose of attempting to influence legislative or 8.4 administrative action, or the official action of a metropolitan 8.5 governmental unit, by communicating or urging others to 8.6 communicate with public or local officials; or 8.7 (2) who spends more than $250, not including the 8.8 individual's own traveling expenses and membership dues, in any 8.9 year for the purpose of attempting to influence legislative or 8.10 administrative action, or the official action of a metropolitan 8.11 governmental unit, by communicating or urging others to 8.12 communicate with public or local officials. 8.13 (b) "Lobbyist" does not include: 8.14 (1) a public official; 8.15 (2) an employee of the state, including an employee of any 8.16 of the public higher education systems; 8.17 (3) an elected local official; 8.18 (4) a nonelected local official or an employee of a 8.19 political subdivision acting in an official capacity, unless the 8.20 nonelected official or employee of a political subdivision 8.21 spends more than 50 hours in any month attempting to influence 8.22 legislative or administrative action, or the official action of 8.23 a metropolitan governmental unit other than the political 8.24 subdivision employing the official or employee, by communicating 8.25 or urging others to communicate with public or local officials, 8.26 including time spent monitoring legislative or administrative 8.27 action, or the official action of a metropolitan governmental 8.28 unit, and related research, analysis, and compilation and 8.29 dissemination of information relating to legislative or 8.30 administrative policy in this state, or to the policies of 8.31 metropolitan governmental units; 8.32 (5) a party or the party's representative appearing in a 8.33 proceeding before a state board, commission, or agency of the 8.34 executive branch unless the board, commission, or agency is 8.35 taking administrative action; 8.36 (6) an individual while engaged in selling goods or 9.1 services in an amount of $5,000,000 or less to be paid for by 9.2 public funds; 9.3 (7) a news medium or its employees or agents while engaged 9.4 in the publishing or broadcasting of news items, editorial 9.5 comments, or paid advertisements which directly or indirectly 9.6 urge official action; 9.7 (8) a paid expert witness whose testimony is requested by 9.8 the body before which the witness is appearing, but only to the 9.9 extent of preparing or delivering testimony; or 9.10 (9) a party or the party's representative appearing to 9.11 present a claim to the legislature and communicating to 9.12 legislators only by the filing of a claim form and supporting 9.13 documents and by appearing at public hearings on the claim. 9.14 Sec. 19. [10A.035] [FORMER LEGISLATOR; LOBBYIST 9.15 RESTRICTION.] 9.16 For the period of one year after leaving office or 9.17 employment, a member of the legislature or an unclassified 9.18 executive branch employee may not act as a lobbyist as defined 9.19 in section 10A.01, subdivision 21, with regard to attempting to 9.20 influence legislative action. 9.21 Sec. 20. Minnesota Statutes 1998, section 15.0591, 9.22 subdivision 2, is amended to read: 9.23 Subd. 2. [BODIES AFFECTED.] A member meeting the 9.24 qualifications in subdivision 1 must be appointed to the 9.25 following boards, commissions, advisory councils, task forces, 9.26 or committees: 9.27 (1) advisory council on battered women; 9.28 (2) advisory task force on the use of state facilities; 9.29 (3) alcohol and other drug abuse advisory council; 9.30 (4) board of examiners for nursing home administrators; 9.31 (5) board on aging; 9.32 (6) chiropractic examiners board; 9.33 (7) consumer advisory council on vocational rehabilitation; 9.34 (8) council on disability; 9.35 (9) council on affairs of Chicano/Latino people; 9.36 (10) council on Black Minnesotans; 10.1 (11) dentistry board; 10.2 (12) department of economic security advisory council; 10.3 (13) higher education services office; 10.4 (14) housing finance agency; 10.5 (15) Indian advisory council on chemical dependency; 10.6 (16) medical practice board; 10.7 (17) medical policy directional task force on mental 10.8 health; 10.9 (18) Minnesota employment and economic development task 10.10 force; 10.11 (19)Minnesota office of citizenship and volunteer services10.12advisory committee;10.13(20)Minnesota state arts board; 10.14(21)(20) nursing board; 10.15(22)(21) optometry board; 10.16(23)(22) pharmacy board; 10.17(24)(23) physical therapists council; 10.18(25)(24) podiatry board; 10.19(26)(25) psychology board; 10.20(27)(26) veterans advisory committee. 10.21 Sec. 21. Minnesota Statutes 1998, section 15A.0815, 10.22 subdivision 2, is amended to read: 10.23 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 10.24 positions in this subdivision may not exceed8575 percent of 10.25 the salary of the governor: 10.26 Commissioner of administration; 10.27 Commissioner of agriculture; 10.28 Commissioner of children, families, and learning; 10.29 Commissioner of commerce; 10.30 Commissioner of corrections; 10.31 Commissioner of economic security; 10.32 Commissioner of employee relations; 10.33 Commissioner of finance; 10.34 Commissioner of health; 10.35 Executive director, higher education services office; 10.36 Commissioner, housing finance agency; 11.1 Commissioner of human rights; 11.2 Commissioner of human services; 11.3 Executive director, state board of investment; 11.4 Commissioner of labor and industry; 11.5 Commissioner of natural resources; 11.6 Director of office of strategic and long-range planning; 11.7 Commissioner, pollution control agency; 11.8 Commissioner of public safety; 11.9 Commissioner, department of public service; 11.10 Commissioner of revenue; 11.11 Commissioner of trade and economic development; 11.12 Commissioner of transportation; and 11.13 Commissioner of veterans affairs. 11.14 Sec. 22. Minnesota Statutes 1998, section 15A.0815, 11.15 subdivision 3, is amended to read: 11.16 Subd. 3. [GROUP II SALARY LIMITS.] The salaries for 11.17 positions in this subdivision may not exceed7565 percent of 11.18 the salary of the governor: 11.19 Ombudsman for corrections; 11.20 Executive director of gambling control board; 11.21 Commissioner, iron range resources and rehabilitation 11.22 board; 11.23 Commissioner, bureau of mediation services; 11.24 Ombudsman for mental health and retardation; 11.25 Chair, metropolitan council; 11.26 Executive director of pari-mutuel racing; 11.27 Executive director, public employees retirement 11.28 association; 11.29 Commissioner, public utilities commission; 11.30 Executive director, state retirement system; and 11.31 Executive director, teachers retirement association. 11.32 Sec. 23. Minnesota Statutes 1998, section 16A.10, is 11.33 amended by adding a subdivision to read: 11.34 Subd. 2a. [INFORMATION TECHNOLOGY 11.35 PROJECTS.] Notwithstanding any law to the contrary, by November 11.36 30 of each even-numbered year, the commissioner must send the 12.1 chairs of the house of representatives ways and means committee 12.2 and the senate state government finance committee a list of all 12.3 agency requests for funding in the next biennium of information 12.4 and communication technology projects estimated to cost more 12.5 than $100,000. 12.6 Sec. 24. Minnesota Statutes 1999 Supplement, section 12.7 16A.103, subdivision 1, is amended to read: 12.8 Subdivision 1. [STATE REVENUE AND EXPENDITURES.] In 12.9 February and November each year, the commissioner shall prepare 12.10 a forecast of state revenue and expenditures. The November 12.11 forecast must be delivered to the legislature and governor no 12.12 later than the end of the first week of December. The February 12.13 forecast must be delivered to the legislature and governor by 12.14 the end of February. Forecasts must be delivered to the 12.15 legislature and governor on the same day. If requested by the 12.16 legislative commission on planning and fiscal policy, delivery 12.17 to the legislature must include a presentation to the commission. 12.18 Subd. 1a. [FORECAST PARAMETERS.] The forecast must assume 12.19 the continuation of current laws and reasonable estimates of 12.20 projected growth in the national and state economies and 12.21 affected populations. Revenue must be estimated for all sources 12.22 provided for in current law. Expenditures must be estimated for 12.23 all obligations imposed by law and those projected to occur as a 12.24 result ofinflation andvariables outside the control of the 12.25 legislature. The forecast must include a set aside amount that 12.26 reflects cost increases as a result of inflation in delivering 12.27 the current law level of services. This amount may not exceed 12.28 the amount obtained by applying the Consumer Price Index to 12.29 those state expenditures that reflect payments for services at 12.30 the state or local level. An amount to reflect increases in 12.31 providing services may not be applied to any appropriation for 12.32 which the law or process determining that appropriation amount 12.33 already includes a factor to reflect those cost increases. 12.34 Subd. 1b. [FORECAST VARIABLE.] In determining the rate of 12.35 inflation, the application of inflation, the amount of state 12.36 bonding as it affects debt service, the calculation of 13.1 investment income, and the other variables to be included in the 13.2 expenditure part of the forecast, the commissioner must consult 13.3 with thechairchairs and lead minority members of the senate 13.4 state government finance committee,and thechair of thehouse 13.5committee onways and means committee, andhouse and13.6senatelegislative fiscal staff. This consultation must occur 13.7 at least six weeks before the forecast is to be released. No 13.8 later than two weeks prior to the release of the forecast, the 13.9 commissioner must inform the chairs and lead minority members of 13.10 the senate state government finance committee and the house ways 13.11 and means committee, and legislative fiscal staff of any changes 13.12 in these variables from the previous forecast. 13.13 Subd. 1c. [EXPENDITURE DATA.] State agencies must submit 13.14 any revisions in expenditure data the commissioner determines 13.15 necessary for the forecast to the commissioner at least four 13.16 weeks prior to the release of the forecast. The information 13.17 submitted by state agencies and any modifications to that 13.18 information made by the commissioner must be made available to 13.19 legislative fiscal staff no later than three weeks prior to the 13.20 release of the forecast. 13.21 Subd. 1d. [REVENUE DATA.] On a monthly basis, the 13.22 commissioner must provide legislative fiscal staff with an 13.23 update of the previous month's state revenues no later than 12 13.24 days after the end of that month. 13.25 Subd. 1e. [ECONOMIC INFORMATION.] The commissioner must 13.26 review economic information including economic forecasts with 13.27 legislative fiscal staff no later than two weeks before the 13.28 forecast is released. The commissioner must invite the chairs 13.29 and lead minority members of the senate state government finance 13.30 committee and the house ways and means committee, and 13.31 legislative fiscal staff to attend any meetings held with 13.32 outside economic advisors. The commissioner must provide 13.33 legislative fiscal staff with monthly economic forecast 13.34 information received from outside sources. 13.35 Subd. 1f. [PERSONAL INCOME.] In addition, the commissioner 13.36 shall forecast Minnesota personal income for each of the years 14.1 covered by the forecast and include these estimates in the 14.2 forecast documents. 14.3 Subd. 1g. [PERIOD TO BE FORECAST.] A forecast prepared 14.4 during the first fiscal year of a biennium must cover that 14.5 biennium and the next biennium. A forecast prepared during the 14.6 second fiscal year of a biennium must cover that biennium and 14.7 the next two bienniums. 14.8 Sec. 25. Minnesota Statutes 1998, section 16A.11, 14.9 subdivision 3, is amended to read: 14.10 Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the 14.11 budget, the detailed budget estimates both of expenditures and 14.12 revenues, must contain any statements on the financial plan 14.13 which the governor believes desirable or which may be required 14.14 by the legislature. The detailed estimates shall include the 14.15 governor's budget arranged in tabular form. 14.16 (b) The detailed estimates must include a separate line 14.17 listing the total number of professional or technical service 14.18 contracts and the total cost of those contracts for the prior 14.19 biennium and the projected number of professional or technical 14.20 service contracts and the projected costs of those contracts for 14.21 the current and upcoming biennium. They must also include a 14.22 summary of the personnel employed by the agency, reflected as 14.23 full-time equivalent positions, and the number of professional 14.24 or technical service consultants for the current biennium. 14.25 (c) The detailed estimates for internal service funds must 14.26 include the number of full-time equivalents by program; detail 14.27 on any loans from the general fund, including dollar amounts by 14.28 program; proposed investments in technology or equipment of 14.29 $100,000 or more; an explanation of any operating losses or 14.30 increases in retained earnings; and a history of the rates that 14.31 have been charged, with an explanation of any rate changes and 14.32 the impact of the rate changes on affected agencies. 14.33 Sec. 26. Minnesota Statutes 1998, section 16A.124, is 14.34 amended by adding a subdivision to read: 14.35 Subd. 3a. [SUPPLEMENTAL AGREEMENT.] If an agency submits a 14.36 supplemental agreement to an existing contract to the 15.1 commissioner of administration for approval, the commissioner of 15.2 administration must act on the supplemental agreement in time 15.3 for the agency to make payments to the vendor in the manner 15.4 required under this section. 15.5 Sec. 27. Minnesota Statutes 1998, section 16A.126, 15.6 subdivision 2, is amended to read: 15.7 Subd. 2. [IMMEDIATE NEEDS.] To reduce reserves for 15.8 unforeseen needs, and so reduce these rates, the commissioner 15.9 may transfer money from the general fund to a revolving fund. 15.10 Before doing so, the commissioner must decide there is not 15.11 enough money in the revolving fund for an immediate, necessary 15.12 expenditure. The amount necessary to make the transfer is 15.13 appropriated from the general fund to the commissioner of 15.14 finance. The commissioner shall report the amount and purpose 15.15 of the transfer to the chair of the committee or division in the 15.16 senate and house of representatives with primary jurisdiction 15.17 over the budget of the department of finance. 15.18 Sec. 28. Minnesota Statutes 1999 Supplement, section 15.19 16A.129, subdivision 3, is amended to read: 15.20 Subd. 3. [CASH ADVANCES.] When the operations of any 15.21 nongeneral fund account would be impeded by projected cash 15.22 deficiencies resulting from delays in the receipt of grants, 15.23 dedicated income, or other similar receivables, and when the 15.24 deficiencies would be corrected within the budget period 15.25 involved, the commissioner of finance may use general fund cash 15.26 reserves to meet cash demands. If funds are transferred from 15.27 the general fund to meet cash flow needs, the cash flow 15.28 transfers must be returned to the general fund as soon as 15.29 sufficient cash balances are available in the account to which 15.30 the transfer was made.The fund to which general fund cash was15.31advanced must pay interest on the cash advance at a rate15.32comparable to the rate earned by the state on invested15.33treasurer's cash, as determined monthly by the commissioner. An15.34amount necessary to pay the interest is appropriated from the15.35nongeneral fund to which the cash advance was made.Any 15.36 interest earned on general fund cash flow transfers accrues to 16.1 the general fund and not to the accounts or funds to which the 16.2 transfer was made. The commissioner may advance general fund 16.3 cash reserves to nongeneral fund accounts where the receipts 16.4 from other governmental units cannot be collected within the 16.5 budget period. 16.6 Sec. 29. [16A.145] [INFORMATION SYSTEMS PROJECTS.] 16.7 Before funds are spent or encumbered for an executive 16.8 agency information systems development project estimated to cost 16.9 more than $1,000,000, the commissioner of finance must ensure 16.10 that a source outside of state government has completed a risk 16.11 assessment for the project and that the results of the 16.12 assessment have been reported to the chairs of the house ways 16.13 and means and senate state government finance committees. The 16.14 entity performing the risk assessment must not have a direct or 16.15 indirect financial interest in the project. 16.16 Sec. 30. [16A.633] [CAPITAL FUNDING CONTINGENT ON 16.17 MAINTAINING DATA.] 16.18 Subdivision 1. [STATE AGENCIES.] Each state agency shall 16.19 provide to the commissioner of administration the data necessary 16.20 for the commissioner to maintain the department's database on 16.21 the location, description, and condition of state-owned 16.22 facilities. The data must be provided by December 15 each 16.23 year. The commissioner of administration must maintain both the 16.24 current inventory data and historical data. A state agency is 16.25 not eligible to receive capital funding unless the agency has 16.26 provided the data required. 16.27 Subd. 2. [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 16.28 board of trustees of the Minnesota state colleges and 16.29 universities shall establish and maintain data on the location, 16.30 description, and condition of board-owned facilities that is 16.31 comparable with the database established by the department of 16.32 administration. The data must be updated annually and the board 16.33 must maintain both current inventory data and historical data. 16.34 The board is not eligible to receive capital funding unless the 16.35 board has established and maintains the data required. 16.36 Subd. 3. [UNIVERSITY OF MINNESOTA.] The board of regents 17.1 of the University of Minnesota is requested to establish and 17.2 maintain data on the location, description, and condition of 17.3 university-owned facilities that is comparable with the database 17.4 established by the department of administration. The university 17.5 is requested to update the data annually and maintain both 17.6 current inventory data and historical data. The board of 17.7 regents is not eligible to receive capital funding unless the 17.8 board has established and maintains the data required. 17.9 Sec. 31. [16A.6705] [LIMIT.] 17.10 (a) The commissioner may not issue bonds to provide money 17.11 for a project for which the legislature has appropriated more 17.12 than $5,000,000 unless a cost-benefit analysis has been 17.13 completed and shows a positive benefit to the public. The 17.14 management analysis division of the department of administration 17.15 must perform or direct the performance of the analysis. 17.16 (b) All cost-benefit analysis documents under this section, 17.17 including preliminary drafts and notes, are public data. 17.18 (c) If a cost-benefit analysis does not show a positive 17.19 benefit to the public, the governor may issue bonds for the 17.20 project if a cost-effectiveness study has been done that shows a 17.21 proposed project is the most effective way to provide a 17.22 necessary public good compared to other means of accomplishing 17.23 the goals of legislation authorizing the appropriation. 17.24 (d) This section does not apply to projects that are in 17.25 response to a natural disaster if an emergency has been declared 17.26 by the governor. 17.27 Sec. 32. Minnesota Statutes 1998, section 16B.052, is 17.28 amended to read: 17.29 16B.052 [AUTHORITY TO TRANSFER FUNDS.] 17.30 The commissioner may, with the approval of the commissioner 17.31 of finance, transfer from an internal service or enterprise fund 17.32 account to another internal service or enterprise fund account, 17.33 any contributed capital appropriated by the legislature. The 17.34 transfer may be made only to provide working capital or positive 17.35 cash flow in the account to which the money is transferred. The 17.36 commissioner shall report the amount and purpose of the transfer 18.1 to the chair of the committee or division in the senate and 18.2 house of representatives with primary jurisdiction over the 18.3 budget of the department of administration. The transfer must 18.4 be repaid within 18 months. 18.5 Sec. 33. Minnesota Statutes 1998, section 16B.31, is 18.6 amended by adding a subdivision to read: 18.7 Subd. 1a. [DESIGN-BUILD PROHIBITION.] An agency may not 18.8 use a design-build method of project development and 18.9 construction. For purposes of this subdivision: 18.10 (1) "design-build method" means a project delivery system 18.11 in which a single contractor is responsible for both the design 18.12 and construction of the project and in which the design and 18.13 construction are bid together; 18.14 (2) "agency" has the meaning defined in section 16B.01, and 18.15 includes the Minnesota state colleges and universities and any 18.16 agency to which the commissioner or other law has delegated 18.17 contracting authority. 18.18 Sec. 34. Minnesota Statutes 1998, section 16B.335, 18.19 subdivision 5, is amended to read: 18.20 Subd. 5. [INFORMATION TECHNOLOGY.] Agency requests for 18.21 construction and remodeling funds shall include money for 18.22 cost-effective information technology investments that would 18.23 enable an agency to reduce its need for office space, provide 18.24 more of its services electronically, and decentralize its 18.25 operations.The office of technology must review and approve18.26the information technology portion of construction and major18.27remodeling program plans before the plans are submitted to the18.28chairs of the senate finance committee and the house of18.29representatives ways and means committee for their18.30recommendations and the chair of the house of representatives18.31capital investment committee is notified as required by18.32subdivision 1.18.33 Sec. 35. Minnesota Statutes 1998, section 16B.42, 18.34 subdivision 2, is amended to read: 18.35 Subd. 2. [DUTIES.] The council shall: assist state and 18.36 local agencies in developing and updating intergovernmental 19.1 information systems; facilitate participation of users during 19.2 the development of major revisions of intergovernmental 19.3 information systems; review intergovernmental information and 19.4 computer systems involving intergovernmental funding; encourage 19.5 cooperative efforts among state and local governments in 19.6 developing intergovernmental information systems; present local 19.7 government concerns to state government and state government 19.8 concerns to local government with respect to intergovernmental 19.9 information systems;develop and recommend standards and19.10policies for intergovernmental information systems to the office19.11of technology;foster the efficient use of available federal, 19.12 state, local, and private resources for the development of 19.13 intergovernmental systems; keep government agencies abreast of 19.14 the state of the art in information systems; prepare guidelines 19.15 for intergovernmental systems; assist the commissioner of 19.16 administration in the development of cooperative contracts for 19.17 the purchase of information system equipment and software; and 19.18 assist the legislature by providing advice on intergovernmental 19.19 information systems issues. 19.20 Sec. 36. Minnesota Statutes 1998, section 16B.42, 19.21 subdivision 3, is amended to read: 19.22 Subd. 3. [OTHER DUTIES.] The intergovernmental 19.23 informations systems advisory council shall (1) recommend to the 19.24 commissioners of state departments, the legislative auditor, and 19.25 the state auditor a method for the expeditious gathering and 19.26 reporting of information and data between agencies and units of 19.27 local government in accordance with cooperatively developed 19.28 standards; (2) elect an executive committee, not to exceed seven 19.29 members from its membership; (3) develop an annual plan, to 19.30 include administration and evaluation of grants, in compliance 19.31 with applicable rules; (4) provide technical information systems 19.32 assistance or guidance to local governments for development, 19.33 implementation, and modification of automated systems, including 19.34 formation of consortiums for those systems; (5) appoint 19.35 committees and task forces, which may include persons other than 19.36 council members, to assist the council in carrying out its 20.1 duties; (6) select an executive director to serve the council 20.2 and may employ other employees it deems necessary, all of whom 20.3 are in the classified service of the state civil service; and (7) 20.4 may contract for professional and other similar services on 20.5 terms it deems desirable; and (8) work with the office of20.6technology to ensure that information systems developed by state20.7agencies that impact local government will be reviewed by the20.8council. 20.9 Sec. 37. Minnesota Statutes 1998, section 16B.48, 20.10 subdivision 4, is amended to read: 20.11 Subd. 4. [REIMBURSEMENTS.] Except as specifically provided 20.12 otherwise by law, each agency shall reimburse intertechnologies 20.13 and general services revolving funds for the cost of all 20.14 services, supplies, materials, labor, and depreciation of 20.15 equipment, including reasonable overhead costs, which the 20.16 commissioner is authorized and directed to furnish an agency. 20.17 The cost of all publications or other materials produced by the 20.18 commissioner and financed from the general services revolving 20.19 fund must include reasonable overhead costs. The commissioner 20.20 of administration shall report the rates to be charged for each 20.21 revolving fund no later than July 1 each year to the chair of 20.22 the committee or division in the senate and house of 20.23 representatives with primary jurisdiction over the budget of the 20.24 department of administration. The commissioner of finance shall 20.25 make appropriate transfers to the revolving funds described in 20.26 this section when requested by the commissioner of 20.27 administration. The commissioner of administration may make 20.28 allotments, encumbrances, and, with the approval of the 20.29 commissioner of finance, disbursements in anticipation of such 20.30 transfers. In addition, the commissioner of administration, 20.31 with the approval of the commissioner of finance, may require an 20.32 agency to make advance payments to the revolving funds in this 20.33 section sufficient to cover the agency's estimated obligation 20.34 for a period of at least 60 days. All reimbursements and other 20.35 money received by the commissioner of administration under this 20.36 section must be deposited in the appropriate revolving fund. 21.1 Any earnings remaining in the fund established to account for 21.2 the documents service prescribed by section 16B.51 at the end of 21.3 each fiscal year not otherwise needed for present or future 21.4 operations, as determined by the commissioners of administration 21.5 and finance, must be transferred to the general fund. 21.6 Sec. 38. Minnesota Statutes 1998, section 16B.485, is 21.7 amended to read: 21.8 16B.485 [INTERFUND LOANS.] 21.9 The commissioner may, with the approval of the commissioner 21.10 of finance, make loans from an internal service or enterprise 21.11 fund to another internal service or enterprise fund, and the 21.12 amount necessary is appropriated from the fund that makes the 21.13 loan. The commissioner shall report the amount and purpose of 21.14 the loan to the chair of the committee or division in the senate 21.15 and house of representatives with primary jurisdiction over the 21.16 budget of the department of administration. The term of a loan 21.17 made under this section must be not more than 24 months. 21.18 Sec. 39. Minnesota Statutes 1999 Supplement, section 21.19 16B.616, subdivision 3, is amended to read: 21.20 Subd. 3. [SAFETY REQUIREMENTS.] In places of public 21.21 accommodation using bleacher seating, all bleachers or bleacher 21.22 open spaces over3055 inches above grade or the floor below, 21.23 and all bleacher guardrails if any part of the guardrail is over 21.24 55 inches above grade or the floor below must conform to the 21.25 following safety requirements: 21.26 (1) the open space between bleacher footboards, seats, and 21.27 guardrails must not exceed four inches, unless approved safety 21.28 nets are installed, except that bleachers already in existence 21.29 as of August 1, 2001, with open spaces not exceeding nine 21.30 inches, are exempt from the requirement of this clause; 21.31 (2) bleachers must have vertical perimeter guardrails with 21.32 no more than four-inch rail spacing between vertical rails or 21.33 other approved guardrails that address climbability and are 21.34 designed to prevent accidents; and 21.35 (3) the state building official shall determine whether the 21.36 safety nets and guardrail climbability meet the requirements of 22.1 the alternate design section of the State Building Code. All 22.2 new bleachers manufactured, installed, sold, or distributed 22.3 afterJanuaryAugust 1, 2001, must comply with the State 22.4 Building Code in effect andclauses (1), (2), and (3)this 22.5 subdivision. 22.6 Sec. 40. Minnesota Statutes 1999 Supplement, section 22.7 16B.616, subdivision 4, is amended to read: 22.8 Subd. 4. [ENFORCEMENT.] (a) A statutory or home rule 22.9 charter city that is not covered by the code because of action 22.10 taken under section 16B.72 or 16B.73 is responsible for 22.11 enforcement in the city of the code's requirements for bleacher 22.12 safety. In all other areas where the code does not apply 22.13 because of action taken under section 16B.72 or 16B.73, the 22.14 county is responsible for enforcement of those requirements. 22.15 (b) Municipalities that have not adopted the code may 22.16 enforce the code requirements for bleacher safety by either 22.17 entering into a joint powers agreement for enforcement with 22.18 another municipality that has adopted the code or contracting 22.19 for enforcement with a qualified and certified building official 22.20 or state licensed design professional to enforce the code. 22.21 (c) Municipalities, school districts, organizations, 22.22 individuals, and other persons operating or owning places of 22.23 public accommodation with bleachers that are subject to the 22.24 safety requirements in subdivision 3 shall provide a signed 22.25 certification of compliance to the commissioner by January 1, 22.2620012002. The certification shall be prepared by a qualified 22.27 and certified building official or state licensed design 22.28 professional and shall certify that the bleachers have been 22.29 inspected and are in compliance with the requirements of this 22.30 section and are structurally sound. For bleachers owned by a 22.31 school district, the person the district designates to be 22.32 responsible for buildings and grounds may make the certification. 22.33 Sec. 41. Minnesota Statutes 1998, section 43A.38, 22.34 subdivision 1, is amended to read: 22.35 Subdivision 1. [DEFINITIONS.] For the purpose of this 22.36 section the following definitions shall apply: 23.1 (a) "Business" means any corporation, partnership, 23.2 proprietorship, firm, enterprise, franchise, association, 23.3 organization, self-employed individual or any other legal entity 23.4 which engages either in nonprofit or profit making activities. 23.5 (b) "Confidential information" means any information 23.6 obtained under government authority which has not become part of 23.7 the body of public information and which, if released 23.8 prematurely or in nonsummary form, may provide unfair economic 23.9 advantage or adversely affect the competitive position of an 23.10 individual or a business. 23.11 (c) "Employee in the executive branch" means an employee as 23.12 defined in section 43A.02, subdivision 21, and executive branch 23.13 constitutional officers. 23.14 (d) "Private interest" means any interest, including but 23.15 not limited to a financial interest, which pertains to a person 23.16 or business whereby the person or business would gain a benefit, 23.17 privilege, exemption or advantage from the action of a state 23.18 agency or employee that is not available to the general public. 23.19 Sec. 42. [43A.50] [PROPOSALS.] 23.20 Subdivision 1. [PROGRAM ESTABLISHMENT.] The commissioner 23.21 shall establish and promote a program to solicit proposals from 23.22 state employees and former state employees for ways to reduce 23.23 the cost of operating state government or for ways of providing 23.24 the state better or more efficient service. The program must 23.25 include potential for sharing savings with an employee, former 23.26 employee, or group of current or former employees whose proposal 23.27 results in a cost savings to the state. For purposes of this 23.28 section, state "employee" has the meaning defined in section 23.29 43A.02, subdivision 21. 23.30 Subd. 2. [PROCESS.] (a) A state employee, former state 23.31 employee, or a group of state employees or former state 23.32 employees may submit a proposal to the commissioner for reducing 23.33 the cost of operating state government or for providing the 23.34 state better or more efficient service. The commissioner may 23.35 develop a recommended form for submission of proposals. 23.36 (b) The commissioner must decide how to act on each 24.1 proposal. The commissioner must determine which proposals 24.2 warrant consideration for award of shared savings payments. In 24.3 making a determination, the commissioner must consider: 24.4 (1) the potential for significant, measurable savings; 24.5 (2) the extent to which the proposal goes beyond common 24.6 ideas for reducing expenditures; 24.7 (3) the extent to which the proposal has the potential to 24.8 reduce expenditures without reducing the quality or level of 24.9 service that is contemplated by the law establishing the 24.10 program; 24.11 (4) the extent to which people affected by the service are 24.12 likely to support the proposal, and the potential for including 24.13 input from affected people in the implementation of the proposal. 24.14 (c) If the commissioner determines a proposal does not 24.15 warrant consideration for a shared savings plan, the 24.16 commissioner shall forward the proposal to the appropriate state 24.17 agency for its review and comment. If the commissioner 24.18 determines a proposal warrants further consideration for shared 24.19 savings payments, the commissioner shall seek review and 24.20 comments from the appropriate state agency to further analyze 24.21 the feasibility of the proposal and the extent to which the 24.22 potential savings could be measured. 24.23 Subd. 3. [SHARED SAVINGS PLANS.] (a) An approved shared 24.24 savings plan must contain the following elements: 24.25 (1) a plan to reduce state government costs; 24.26 (2) a method of documenting reduction in costs attributable 24.27 to the plan; 24.28 (3) an agreement that a specified percentage of documented 24.29 net cost savings over a prescribed period of time will be 24.30 shared, in the form of a one-time payment, with employees or 24.31 former employees who suggested the plan. 24.32 (b) In approving a shared savings plan, the commissioner 24.33 shall use the following guidelines in determining the amount of 24.34 net savings proposed to be shared: 24.35 Projected Annual Savings Amount to be shared 24.36 $0 to $1,000 20 percent, not to exceed $150 25.1 $1,001 to $10,000 15 percent, not to exceed $1,000 25.2 $10,001 to $100,000 10 percent, not to exceed $7,500 25.3 $100,001 to $500,000 7.5 percent, not to exceed $25,000 25.4 $500,001 to $1 million 5 percent, not to exceed $37,500 25.5 Over $1 million 3.75 percent, not to exceed $100,000 25.6 The percentage to be shared applies only to the first full 25.7 year of net savings after the proposal has been fully 25.8 implemented. 25.9 (c) A state employee who is represented by an exclusive 25.10 representative may not receive payments under a shared savings 25.11 plan except as provided in a collective bargaining agreement. 25.12 Subd. 4. [SHARED SAVINGS PAYMENTS.] (a) Shared savings 25.13 payments may be made only when the commissioner determines that 25.14 a proposal has been implemented and that the projected savings 25.15 under the shared savings plan have been realized. This 25.16 determination, and the calculation of the amount of savings to 25.17 be shared, is at the sole discretion of the commissioner. 25.18 (b) Shared savings payments must be made from funds 25.19 appropriated for the operation of the agency program that is the 25.20 subject of the shared savings plan. Shared savings payments 25.21 under this section are a permissible use of an appropriation for 25.22 operation of an agency program. 25.23 (c) Shared savings payments may not be made to persons who 25.24 are covered by the managerial plan established in section 25.25 43A.18, subdivision 3, or the excluded administrators plan 25.26 established in section 43A.18, subdivision 3a, unless the 25.27 commissioner determines that the proposal involves matters that 25.28 are outside the scope of the manager's normal job duties. A 25.29 legislator, constitutional officer, judge, or commissioner of an 25.30 agency listed in section 15.06, subdivision 1, may not make a 25.31 shared savings proposal and may not receive shared savings 25.32 payments, but persons who formerly served in these positions may 25.33 make proposals and receive shared savings payments. 25.34 Subd. 5. [AGENCY COOPERATION.] Upon request of the 25.35 commissioner, a state agency must cooperate with the 25.36 commissioner in administration of the suggestion and shared 26.1 savings program. Requested cooperation may include: 26.2 (1) assisting the commissioner in analyzing the merits of a 26.3 suggestion; 26.4 (2) explaining to the commissioner how a suggestion has 26.5 been implemented, or why it is not feasible or desirable to 26.6 implement a suggestion, whether or not the suggestion results in 26.7 a shared savings plan; and 26.8 (3) assisting the commissioner in the design and 26.9 implementation of a shared savings plan. 26.10 Subd. 6. [DATA PRACTICES.] The name of an employee or 26.11 former employee submitting a suggestion to the commissioner is 26.12 private data on individuals. However, the person's name becomes 26.13 public data when a shared savings plan is approved by the 26.14 commissioner. The commissioner must notify affected people who 26.15 wish to participate in a shared savings plan that their names 26.16 will become public if the plan is approved. 26.17 Subd. 7. [REPORT.] The commissioner shall report annually 26.18 to the legislature on the implementation of this section. The 26.19 reports must summarize the proposals submitted, the 26.20 commissioner's action on each proposal, and the affected state 26.21 agency's action on each proposal. 26.22 Sec. 43. Minnesota Statutes 1998, section 85A.02, 26.23 subdivision 5a, is amended to read: 26.24 Subd. 5a. [EMPLOYEES.] (a) The board shall appoint an 26.25 administrator who shall serve as the executive secretary and 26.26 principal administrative officer of the board and, subject to 26.27 its approval, shall operate the Minnesota zoological garden and 26.28 enforce all rules and policy decisions of the board. The 26.29 administrator must be chosen solely on the basis of training, 26.30 experience, and other qualifications appropriate to the field of 26.31 zoo management and development. The board shall set the salary 26.32 of the administrator. The salary of the administrator may not 26.33 exceed85 percent ofthe salary of the governor; however, any 26.34 amount exceeding 65 percent of the salary of the governor must 26.35 consist of nonstate funds. The administrator shall perform 26.36 duties assigned by the board and serves in the unclassified 27.1 service at the pleasure of the board. The administrator, with 27.2 the participation of the board, shall appoint a development 27.3 director in the unclassified service or contract with a 27.4 development consultant to establish mechanisms to foster 27.5 community participation in and community support for the 27.6 Minnesota zoological garden. The board may employ other 27.7 necessary professional, technical, and clerical personnel. 27.8 Employees of the zoological garden are eligible for salary 27.9 supplement in the same manner as employees of other state 27.10 agencies. The commissioner of finance shall determine the 27.11 amount of salary supplement based on available funds. 27.12 (b) The board may contract with individuals to perform 27.13 professional services and may contract for the purchases of 27.14 necessary species exhibits, supplies, services, and equipment. 27.15 The board may also contract for the construction and operation 27.16 of entertainment facilities on the zoo grounds that are not 27.17 directly connected to ordinary functions of the zoological 27.18 garden. The zoo board may not enter into a final agreement for 27.19 construction of an entertainment facility that is not directly 27.20 connected to the ordinary functions of the zoo until after final 27.21 construction plans have been submitted to the chairs of the 27.22 senate finance and house appropriations committees for their 27.23 recommendations. 27.24 The zoo may not contract for entertainment during the 27.25 period of the Minnesota state fair that would directly compete 27.26 with entertainment at the Minnesota state fair. 27.27 Sec. 44. Minnesota Statutes 1998, section 119A.05, 27.28 subdivision 1, is amended to read: 27.29 Subdivision 1. [AUTHORITY FOR FUNDING CONSOLIDATION.] 27.30 Notwithstanding existing law governing allocation of funds by 27.31 local grantees, mode of service delivery, grantee planning and 27.32 reporting requirements, and other procedural requirements for 27.33 the grant programs identified in this section, a local grantee 27.34 may elect to consolidate all or a portion of funding received 27.35 from the programs under subdivision 5 in a collaboration funding 27.36 plan, if all conditions specified in this section are 28.1 satisfied. County boards, school boards, or governing boards of 28.2 other grantees may elect not to consolidate funding for a 28.3 program. 28.4 For grantees electing consolidation, the commissioner may,28.5with the approval of the board of government innovation and28.6cooperation,waive all provisions of rules inconsistent with the 28.7 intent of this section. This waiver authority does not apply to 28.8 rules governing client protections, due process, or inclusion of 28.9 clients, parents, cultures, and ethnicities in decision making. 28.10 Funding to a local grantee must be determined according to the 28.11 funding formulas or allocation rules governing the individual 28.12 programs listed in section 119A.04. 28.13 Sec. 45. Minnesota Statutes 1999 Supplement, section 28.14 125B.21, subdivision 1, is amended to read: 28.15 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 28.16 of the Minnesota education telecommunications council 28.17 established in Laws 1993, First Special Session chapter 2, is 28.18 expanded to include representatives of elementary and secondary 28.19 education. The membership shall consist of three 28.20 representatives from the University of Minnesota; three 28.21 representatives of the board of trustees for Minnesota state 28.22 colleges and universities; one representative of the higher 28.23 education services offices; one representative appointed by the 28.24 private college council; one representative selected by the 28.25 commissioner of administration; eight representatives selected 28.26 by the commissioner of children, families, and learning, at 28.27 least one of which must come from each of the six higher 28.28 education telecommunication regions;a representative from the28.29office of technology;two members each from the senate and the 28.30 house of representatives selected by the subcommittee on 28.31 committees of the committee on rules and administration of the 28.32 senate and the speaker of the house, one member from each body 28.33 must be a member of the minority party; and three 28.34 representatives of libraries, one representing regional public 28.35 libraries, one representing multitype libraries, and one 28.36 representing community libraries, selected by the governor. The 29.1 council shall: 29.2 (1) develop a statewide vision and plans for the use of 29.3 distance learning technologies and provide leadership in 29.4 implementing the use of such technologies; 29.5 (2) recommend educational policy relating to 29.6 telecommunications; 29.7 (3) determine priorities for use; 29.8 (4) oversee coordination of networks for post-secondary 29.9 campuses, kindergarten through grade 12 education, and regional 29.10 and community libraries; 29.11 (5) review application for telecommunications access grants 29.12 under Minnesota Statutes, section 125B.20, and recommend to the 29.13 department grants for funding; 29.14 (6) determine priorities for grant funding proposals; and 29.15 (7) work with the information policy office to ensure 29.16 consistency of the operation of the learning network with 29.17 standards of an open system architecture. 29.18 The council shall consult with representatives of the 29.19 telecommunication industry in implementing this section. 29.20 Sec. 46. Minnesota Statutes 1998, section 138.17, 29.21 subdivision 10, is amended to read: 29.22 Subd. 10. [OPTICAL IMAGE STORAGE.] (a) Any government 29.23 record, including a record with archival value, may be 29.24 transferred to and stored on a nonerasable optical imaging 29.25 system and retained only in that format, if the requirements of 29.26 this section are met. 29.27 (b) All documents preserved on nonerasable optical imaging 29.28 systems must meet standards for permanent records specified in 29.29 section 15.17, subdivision 1, and must be kept available for 29.30 retrieval so long as any law requires. Standards under section 29.31 15.17, subdivision 1, may not be inconsistent with efficient use 29.32 of optical imaging systems. 29.33 (c) A government entity storing a record on an optical 29.34 imaging system shall create and store a backup copy of the 29.35 record at a site other than the site where the original is 29.36 kept. The government entity shall retain the backup copy and 30.1 operable retrieval equipment so long as any law requires the 30.2 original to be retained. The backup copy required by this 30.3 paragraph must be preserved either (1) on a nonerasable optical 30.4 imaging system; or (2) by another reproduction method approved 30.5 by the records disposition panel. 30.6 (d) All contracts for the purchase of optical imaging 30.7 systems used pursuant to this chapter shall contain terms that 30.8 insure continued retrievability of the optically stored images 30.9and conform to any guidelines that may be established by the30.10office of technology of the department of administration for30.11perpetuation of access to stored data. 30.12 Sec. 47. Minnesota Statutes 1999 Supplement, section 30.13 179A.04, subdivision 3, is amended to read: 30.14 Subd. 3. [OTHER DUTIES.] (a) The commissioner shall: 30.15 (1) provide mediation services as requested by the parties 30.16 until the parties reach agreement, and may continue to assist 30.17 parties after they have submitted their final positions for 30.18 interest arbitration; 30.19 (2) issue notices, subpoenas, and orders required by law to 30.20 carry out duties under sections 179A.01 to 179A.25; 30.21 (3) assist the parties in formulating petitions, notices, 30.22 and other papers required to be filed with the commissioner; 30.23 (4) conduct elections; 30.24 (5) certify the final results of any election or other 30.25 voting procedure conducted under sections 179A.01 to 179A.25; 30.26 (6) adopt rules relating to the administration of this 30.27 chapter and the conduct of hearings and elections; 30.28 (7) receive, catalogue, file, and make available to the 30.29 public all decisions of arbitrators and panels authorized by 30.30 sections 179A.01 to 179A.25, all grievance arbitration 30.31 decisions, and the commissioner's orders and decisions; 30.32 (8) adopt, subject to chapter 14, a grievance procedure 30.33 that fulfills the purposes of section 179A.20, subdivision 4, 30.34does not provide for the services of the bureau of mediation30.35services andthat is available to any employee in a unit not 30.36 covered by a contractual grievance procedure; 31.1 (9) maintain a schedule of state employee classifications 31.2 or positions assigned to each unit established in section 31.3 179A.10, subdivision 2; 31.4 (10) collect fees established by rule for empanelment of 31.5 persons on the labor arbitrator roster maintained by the 31.6 commissioner or in conjunction with fair share fee challenges; 31.7 (11) provide technical support and assistance to voluntary 31.8 joint labor-management committees established for the purpose of 31.9 improving relationships between exclusive representatives and 31.10 employers, at the discretion of the commissioner; 31.11 (12) provide to the parties a list of arbitrators as 31.12 required by section 179A.16, subdivision 4; and 31.13 (13) maintain a list of up to 60 arbitrators for referral 31.14 to employers and exclusive representatives for the resolution of 31.15 grievance or interest disputes. Each person on the list must be 31.16 knowledgeable about collective bargaining and labor relations in 31.17 the public sector, well versed in state and federal labor law, 31.18 and experienced in and knowledgeable about labor arbitration. 31.19 To the extent practicable, the commissioner shall appoint 31.20 members to the list so that the list is gender and racially 31.21 diverse. 31.22 (b) From the names provided by representative 31.23 organizations, the commissioner shall maintain a list of 31.24 arbitrators to conduct teacher discharge or termination hearings 31.25 according to section 122A.40 or 122A.41. The persons on the 31.26 list must meet at least one of the following requirements: 31.27 (1) be a former or retired judge; 31.28 (2) be a qualified arbitrator on the list maintained by the 31.29 bureau; 31.30 (3) be a present, former, or retired administrative law 31.31 judge; or 31.32 (4) be a neutral individual who is learned in the law and 31.33 admitted to practice in Minnesota, who is qualified by 31.34 experience to conduct these hearings, and who is without bias to 31.35 either party. 31.36 Each year, education Minnesota shall provide a list of up 32.1 to 14 names and the Minnesota school boards association a list 32.2 of up to 14 names of persons to be on the list. The 32.3 commissioner may adopt rules about maintaining and updating the 32.4 list. 32.5 Sec. 48. Minnesota Statutes 1998, section 179A.18, 32.6 subdivision 1, is amended to read: 32.7 Subdivision 1. [WHEN AUTHORIZED.] Essential employees may 32.8 not strike. Except as otherwise provided by subdivision 2 and 32.9 section 179A.17, subdivision 2, other public employees may 32.10 strike only under the following circumstances: 32.11 (1)(a) the collective bargaining agreement between their 32.12 exclusive representative and their employer has expired or, if 32.13 there is no agreement, impasse under section 179A.17, 32.14 subdivision 2, has occurred; and 32.15 (b) the exclusive representative and the employer have 32.16 participated in mediation over a period of at least 45 days, 32.17 provided that the mediation period established by section 32.18 179A.17, subdivision 2, governs negotiations under that section, 32.19 and provided that for the purposes of this subclause the 32.20 mediation period commences on the day following receipt by the 32.21 commissioner of a request for mediation; or 32.22 (2) the employer violates section 179A.13, subdivision 2, 32.23 clause (9); or 32.24 (3) in the case of state employees, 32.25 (a) the legislative coordinating commissionon employee32.26relationshas rejected a negotiated agreement or arbitration 32.27 decision during a legislative interim; or 32.28 (b) the entire legislature rejects or fails to ratify a 32.29 negotiated agreement or arbitration decision, which has been 32.30 approved during a legislative interim by the legislative 32.31 coordinating commissionon employee relations, at a special 32.32 legislative session called to consider it, or at its next 32.33 regular legislative session, whichever occurs first. 32.34 Sec. 49. Minnesota Statutes 1998, section 181.932, 32.35 subdivision 1, is amended to read: 32.36 Subdivision 1. [PROHIBITED ACTION.] An employer shall not 33.1 discharge, discipline, threaten, otherwise discriminate against, 33.2 or penalize an employee regarding the employee's compensation, 33.3 terms, conditions, location, or privileges of employment because: 33.4 (a) the employee, or a person acting on behalf of an 33.5 employee, in good faith, reports a violation or suspected 33.6 violation of any federal or state law or rule adopted pursuant 33.7 to law to an employer or to any governmental body or law 33.8 enforcement official; 33.9 (b) the employee is requested by a public body or office to 33.10 participate in an investigation, hearing, inquiry; 33.11 (c) the employee refuses an employer's order to perform an 33.12 action that the employee has an objective basis in fact to 33.13 believe violates any state or federal law or rule or regulation 33.14 adopted pursuant to law, and the employee informs the employer 33.15 that the order is being refused for that reason;or33.16 (d) the employee, in good faith, reports a situation in 33.17 which the quality of health care services provided by a health 33.18 care facility, organization, or health care provider violates a 33.19 standard established by federal or state law or a professionally 33.20 recognized national clinical or ethical standard and potentially 33.21 places the public at risk of harm; or 33.22 (e) a state employee or former state employee submits a 33.23 proposal to the commissioner of employee relations under section 33.24 43A.50. 33.25 Sec. 50. Minnesota Statutes 1999 Supplement, section 33.26 181.932, subdivision 2, is amended to read: 33.27 Subd. 2. [DISCLOSURE OF IDENTITY.] The identity of any 33.28 employee making a report to a governmental body or law 33.29 enforcement official under subdivision 1, clause (a) or (d), is 33.30 private data on individuals as defined in section 13.02. The 33.31 identity of a state employee or former state employee submitting 33.32 a proposal under subdivision 1, clause (e), is private data on 33.33 individuals to the extent provided in section 43A.50. The 33.34 identity of an employee providing information under subdivision 33.35 1, clause (b), is private data on individuals if: 33.36 (1) the employee would not have provided the information 34.1 without an assurance that the employee's identity would remain 34.2 private, because of a concern that the employer would commit an 34.3 action prohibited under subdivision 1 or that the employee would 34.4 be subject to some other form of retaliation; or 34.5 (2) the state agency, statewide system, or political 34.6 subdivision reasonably believes that the employee would not have 34.7 provided the data because of that concern. 34.8 If the disclosure is necessary for prosecution, the 34.9 identity of the employee may be disclosed but the employee shall 34.10 be informed prior to the disclosure. 34.11 Sec. 51. Minnesota Statutes 1998, section 193.143, is 34.12 amended to read: 34.13 193.143 [STATE ARMORY BUILDING COMMISSION, POWERS.] 34.14 Such corporation, subject to the conditions and limitations 34.15 prescribed in sections 193.141 to 193.149, shall possess all the 34.16 powers of a body corporate necessary and convenient to 34.17 accomplish the objectives and perform the duties prescribed by 34.18 sections 193.141 to 193.149, including the following, which 34.19 shall not be construed as a limitation upon the general powers 34.20 hereby conferred: 34.21 (1) To acquire by lease, purchase, gift, or condemnation 34.22 proceedings all necessary right, title, and interest in and to 34.23 the lands required for a site for a new armory and all other 34.24 real or personal property required for the purposes contemplated 34.25 by the Military Code and to hold and dispose of the same, 34.26 subject to the conditions and limitations herein prescribed; 34.27 provided that any such real or personal property or interest 34.28 therein may be so acquired or accepted subject to any condition 34.29 which may be imposed thereon by the grantor or donor and agreed 34.30 to by such corporation not inconsistent with the proper use of 34.31 such property by the state for armory or military purposes as 34.32 herein provided. 34.33 (2) To exercise the right of eminent domain in the manner 34.34 provided by chapter 117, for the purpose of acquiring any 34.35 property which such corporation is herein authorized to acquire 34.36 by condemnation; provided, that the corporation may take 35.1 possession of any such property so to be acquired at any time 35.2 after the filing of the petition describing the same in 35.3 condemnation proceedings; provided further, that this shall not 35.4 preclude the corporation from abandoning the condemnation of any 35.5 such property in any case where possession thereof has not been 35.6 taken. 35.7 (3) To construct and equip new armories as authorized 35.8 herein; to pay therefor out of the funds obtained as hereinafter 35.9 provided and to hold, manage, and dispose of such armory, 35.10 equipment, and site as hereinafter provided. The total amount 35.11 of bonds issued on account of such armories shall not exceed the 35.12 amount of the cost thereof; provided also, that the total bonded 35.13 indebtedness of the commission shall not at any time exceed the 35.14 aggregate sum of$7,000,000$15,000,000. 35.15 (4) To enter into partnerships with federal and state 35.16 governments and to match federal and local funds, when available. 35.17 (5) To sue and be sued. 35.18(5)(6) To contract and be contracted with in any matter 35.19 connected with any purpose or activity within the powers of such 35.20 corporations as herein specified; provided, that no officer or 35.21 member of such corporation shall be personally interested, 35.22 directly or indirectly, in any contract in which such 35.23 corporation is interested. 35.24(6)(7) To employ any and all professional and 35.25 nonprofessional services and all agents, employees, workers, and 35.26 servants necessary and proper for the purposes and activities of 35.27 such corporation as authorized or contemplated herein and to pay 35.28 for the same out of any portion of the income of the corporation 35.29 available for such purposes or activities. The officers and 35.30 members of such corporation shall not receive any compensation 35.31 therefrom, but may receive their reasonable and necessary 35.32 expenses incurred in connection with the performance of their 35.33 duties; provided however, that whenever the duties of any member 35.34 of the commission require full time and attention the commission 35.35 may compensate the member therefor at such rates as it may 35.36 determine. 36.1(7)(8) To borrow money and issue bonds for the purposes 36.2 and in the manner and within the limitations herein specified, 36.3 and to pledge any and all property and income of such 36.4 corporation acquired or received as herein provided to secure 36.5 the payment of such bonds, subject to the provisions and 36.6 limitations herein prescribed, and to redeem any such bonds if 36.7 so provided therein or in the mortgage or trust deed 36.8 accompanying the same. 36.9(8)(9) To use for the following purposes any available 36.10 money received by such corporation from any source as herein 36.11 provided in excess of those required for the payment of the cost 36.12 of such armory and for the payment of any bonds issued by the 36.13 corporation and interest thereon according to the terms of such 36.14 bonds or of any mortgage or trust deed accompanying the same: 36.15(a)(i) To pay the necessary incidental expenses of 36.16 carrying on the business and activities of the corporation as 36.17 herein authorized; 36.18(b)(ii) To pay the cost of operating, maintaining, 36.19 repairing, and improving such new armories; 36.20(c)(iii) If any further excess moneys remain, to purchase 36.21 upon the open market at or above or below the face or par value 36.22 thereof any bonds issued by the corporation as herein 36.23 authorized; provided, that any bonds so purchased shall 36.24 thereupon be canceled. 36.25(9)(10) To adopt and use a corporate seal. 36.26(10)(11) To adopt all needful bylaws and rules for the 36.27 conduct of business and affairs of such corporation and for the 36.28 management and use of all armories while under the ownership and 36.29 control of such corporation as herein provided, not inconsistent 36.30 with the use of such armory for armory or military purposes. 36.31(11)(12) Such corporation shall issue no stock. 36.32(12)(13) No officer or member of such corporation shall 36.33 have any personal share or interest in any funds or property of 36.34 the corporation or be subject to any personal liability by 36.35 reason of any liability of the corporation. 36.36(13)(14) The Minnesota state armory building commission 37.1 created under section 193.142 shall keep all money and credits 37.2 received by it as a single fund, to be designated as the 37.3 "Minnesota state armory building commission fund," with separate 37.4 accounts for each armory; and the commission may make transfers 37.5 of money from funds appertaining to any armory under its control 37.6 for use for any other such armory; provided such transfers shall 37.7 be made only from money on hand, from time to time, in excess of 37.8 the amounts required to meet payments of interest or principal 37.9 on bonds or other obligations appertaining to the armory to 37.10 which such funds pertain and only when necessary to pay expenses 37.11 of construction, operation, maintenance, and debt service of 37.12 such other armory; provided further, no such transfer of any 37.13 money paid for the support of any armory by the municipality in 37.14 which such armory is situated shall be made by the commission. 37.15(14)(15) The corporation created under section 193.142 may 37.16 designate one or more state or national banks as depositories of 37.17 its funds, and may provide, upon such conditions as the 37.18 corporation may determine, that the treasurer of the corporation 37.19 shall be exempt from personal liability for loss of funds 37.20 deposited in any such depository due to the insolvency or other 37.21 acts or omissions of such depository. 37.22(15)(16) The governor is empowered to apply for grants of 37.23 money, equipment, and materials which may be made available to 37.24 the states by the federal government for leasing, building, and 37.25 equipping armories for the use of the military forces of the 37.26 state which are reserve components of the armed forces of the 37.27 United States, whenever the governor is satisfied that the 37.28 conditions under which such grants are offered by the federal 37.29 government, are for the best interests of the state and are not 37.30 inconsistent with the laws of the state relating to armories, 37.31 and to accept such grants in the name of the state. The 37.32 Minnesota state armory building commission is designated as the 37.33 agency of the state to receive such grants and to use them for 37.34 armory purposes as prescribed in this chapter, and by federal 37.35 laws, and regulations not inconsistent therewith. 37.36 Sec. 52. Minnesota Statutes 1998, section 221.173, is 38.1 amended to read: 38.2 221.173 [ELECTRONIC SIGNATURE.] 38.3 (a) The commissioner may accept in lieu of a required 38.4 document completed on paper, an electronically transmitted 38.5 document authenticated by an electronic signature. 38.6 (b)The commissioner shall consult with the office of38.7technology, which shall provide advice and assistance in38.8establishing criteria and standards for authentication of38.9electronic signatures and establishing to a reasonable certainty38.10the validity, security, and linkage of a specific, unaltered,38.11electronically transmitted document, its unforged signature, and38.12its authorized signer.38.13(c)The commissioner may determine the technology or system 38.14 to be used, which may include a private key/public key system, 38.15 an encrypted or cryptology-based system, a pen-based, on-screen 38.16 signature system that captures and verifies an autograph and 38.17 links it to a specific document, or other system or technology 38.18 or combination of systems. 38.19(d)(c) To the extent consistent with this section, laws 38.20 and rules pertaining to paper-based documents also pertain to 38.21 electronically transmitted documents. 38.22 Sec. 53. Minnesota Statutes 1998, section 256.9753, 38.23 subdivision 3, is amended to read: 38.24 Subd. 3. [EXPENDITURES.]The board shall consult with the38.25office of citizenship and volunteer services prior to expending38.26money available for the retired senior volunteer programs.38.27 Expenditures shall be made (1) to strengthen and expand existing 38.28 retired senior volunteer programs, and (2) to encourage the 38.29 development of new programs in areas in the state where these 38.30 programs do not exist. Grants shall be made consistent with 38.31 applicable federal guidelines. 38.32 Sec. 54. Minnesota Statutes 1998, section 349A.02, 38.33 subdivision 1, is amended to read: 38.34 Subdivision 1. [DIRECTOR.] A state lottery is established 38.35 under the supervision and control of the director of the state 38.36 lottery appointed by the governor with the advice and consent of 39.1 the senate. The director must be qualified by experience and 39.2 training in the operation of a lottery to supervise the 39.3 lottery. The director serves in the unclassified service. The 39.4 annual salary rate authorized for the director is equal to8595 39.5 percent of the salary rate prescribed for the governor. 39.6 Sec. 55. Minnesota Statutes 1998, section 422A.101, 39.7 subdivision 3, is amended to read: 39.8 Subd. 3. [STATE CONTRIBUTIONS.] (a) Subject to the 39.9 limitation set forth in paragraph (c), the state shall pay to 39.10 the Minneapolis employees retirement fund annually an amount 39.11 equal to the amount calculated under paragraph (b). 39.12 (b) The payment amount is an amount equal to the financial 39.13 requirements of the Minneapolis employees retirement fund 39.14 reported in the actuarial valuation of the fund prepared by the 39.15 commission-retained actuary pursuant to section 356.215 for the 39.16 most recent year but based on a target date for full 39.17 amortization of the unfunded actuarial accrued liabilities by 39.18 June 30, 2020, less the amount of employee contributions 39.19 required pursuant to section 422A.10, and the amount of employer 39.20 contributions required pursuant to subdivisions 1a, 2, and 2a. 39.21 Payments shall be madein four equal installments, occurring on39.22March 15, July 15,September 15, and November 15annually. 39.23 (c) The annual state contribution under this subdivision 39.24 may not exceed$10,455,000 through fiscal year 1998 and39.25 $9,000,000beginning in fiscal year 1999, plus the cost of the 39.26 annual supplemental benefit determined under section 356.865. 39.27 (d) If the amount determined under paragraph (b) exceeds 39.28 $11,910,000, the excess must be allocated to and paid to the 39.29 fund by the employers identified in subdivisions 1a and 2, other 39.30 than units of metropolitan government. Each employer's share of 39.31 the excess is proportionate to the employer's share of the 39.32 fund's unfunded actuarial accrued liability as disclosed in the 39.33 annual actuarial valuation prepared by the actuary retained by 39.34 the legislative commission on pensions and retirement compared 39.35 to the total unfunded actuarial accrued liability attributed to 39.36 all employers identified in subdivisions 1a and 2, other than 40.1 units of metropolitan government. Payments must be made in 40.2 equal installments as set forth in paragraph (b). 40.3 Sec. 56. Minnesota Statutes 1998, section 471.345, is 40.4 amended by adding a subdivision to read: 40.5 Subd. 15. [DESIGN-BUILD PROHIBITION.] A municipality may 40.6 not use a design-build method of project development and 40.7 construction. For purposes of this subdivision, "design-build 40.8 method" means a project delivery system in which a single 40.9 contractor is responsible for both the design and construction 40.10 of the project and in which the design and construction are bid 40.11 together. 40.12 Sec. 57. [473.1296] [LIMIT.] 40.13 (a) The metropolitan council or a metropolitan agency may 40.14 not issue bonds to provide money for a project estimated to cost 40.15 more than $5,000,000 unless a cost-benefit analysis has been 40.16 completed and shows a positive benefit to the public. 40.17 (b) All cost-benefit analysis documents under this section, 40.18 including preliminary drafts and notes, are public data. 40.19 (c) If a cost-benefit analysis does not show a positive 40.20 benefit to the public, the metropolitan agency may issue bonds 40.21 for the project if a cost-effectiveness study has been done that 40.22 shows a proposed project is the most effective way to provide a 40.23 necessary public good. 40.24 (d) This section does not apply to projects that are in 40.25 response to a natural disaster if an emergency has been declared 40.26 by the governor. 40.27 Sec. 58. Minnesota Statutes 1999 Supplement, section 40.28 473.3993, subdivision 3, is amended to read: 40.29 Subd. 3. [FINAL DESIGN PLAN.] (a) "Final design plan" 40.30 means a light rail transit plan that includes the items in the 40.31 preliminary design plan and the preliminary engineering plan for 40.32 the facilities proposed but with greater detail and specificity 40.33 needed for construction. The final design plan must include, at 40.34 a minimum: 40.35 (1) final plans for the physical design of facilities, 40.36 including the right-of-way definition; environmental impacts and 41.1 mitigation measures; intermodal coordination with bus operations 41.2 and routes; and civil engineering plans for vehicles, track, 41.3 stations, parking, and access, including handicapped access; and 41.4 (2) final plans for civil engineering for electrification, 41.5 communication, and other similar facilities; operational rules, 41.6 procedures, and strategies; capital costs; ridership; operating 41.7 costs and revenues, and sources of funds for operating 41.8 subsidies; financing for construction and operation; an 41.9 implementation method; and other similar matters. 41.10 The final design plan must be stated with sufficient 41.11 particularity and detail to allow the proposer to begin the 41.12 acquisition and construction of operable facilities.If a41.13design-build implementation method is proposed, instead of civil41.14engineering plans the final design plan must state detailed41.15design criteria and performance standards for the facilities.41.16The commissioner of transportation may use a design-build41.17method of project development and construction for light rail41.18transit. Notwithstanding any law to the contrary, the41.19commissioner may award a design-build contract on the basis of41.20requests for proposals or requests for qualifications without41.21bids. "Design-build method of project development and41.22construction" means a project delivery system in which a single41.23contractor is responsible for both the design and construction41.24of the project and bids the design and construction together.41.25 (b) Notwithstanding other law, chapters 16B and 16C apply 41.26 to project development and construction for light rail transit. 41.27 Sec. 59. Laws 1999, chapter 250, article 1, section 11, is 41.28 amended to read: 41.29 Sec. 11. OFFICE OF STRATEGIC 41.30 AND LONG-RANGE PLANNING 6,891,000 4,417,000 41.31 $100,000 the first year is to integrate 41.32 the office's information technology and 41.33 is available until June 30, 2003. The 41.34 director shall report on the progress 41.35 of the unit to the chairs of the 41.36 legislative committees responsible for 41.37 this budget item by January 15, 2000, 41.38 2001, and 2002. 41.39 $1,600,000 the first year is for a 41.40 generic environmental impact statement 41.41 on animal agriculture. 42.1 $200,000 the first year is to perform 42.2 program evaluations of agencies in the 42.3 executive branch. 42.4 The program evaluation division will 42.5 report to the legislature by December 42.6 1, 2000, ways to reduce state 42.7 government expenditures by five to ten 42.8 percent. 42.9 $100,000 the first year is to provide 42.10 administrative support to 42.11 community-based planning efforts. 42.12 $150,000 the first year is for a grant 42.13 of $50,000 to the southwest regional 42.14 development commission for the 42.15 continuation of the pilot program and 42.16 two additional grants of $50,000 each 42.17 to regional development commissions or, 42.18 in regions not served by regional 42.19 development commissions, to regional 42.20 organizations selected by the director 42.21 of strategic and long-range planning, 42.22 to support planning work on behalf of 42.23 local units of government. The 42.24 planning work shall include, but need 42.25 not be limited to: 42.26 (1) development of local zoning 42.27 ordinances; 42.28 (2) land use plans; 42.29 (3) community or economic development 42.30 plans; 42.31 (4) transportation and transit plans; 42.32 (5) solid waste management plans; 42.33 (6) wastewater management plans; 42.34 (7) workforce development plans; 42.35 (8) housing development plans and/or 42.36 market analysis; 42.37 (9) rural health service plans; 42.38 (10) natural resources management 42.39 plans; or 42.40 (11) development of geographical 42.41 information systems database to serve a 42.42 region's needs, including hardware and 42.43 software purchases and related labor 42.44 costs. 42.45 $200,000 the first year is to prepare 42.46 the generic environmental impact 42.47 statement on urban development required 42.48 by section 108. Any unencumbered 42.49 balance remaining in the first year 42.50 does not cancel and is available for 42.51 the second year of the biennium. 42.52 $24,000 the first year is for the 42.53 southwest Minnesota wind monitoring 42.54 project. 43.1 $100,000 the first year is for a grant 43.2 to the city of Mankato to complete the 43.3 Mankato area growth management and 43.4 planning study, phase 2. The 43.5 appropriation is available until June 43.6 30, 2002. The appropriation must be 43.7 matched by an in-kind donation of 43.8 $100,000 in administrative, technical, 43.9 and higher educational internship 43.10 support and supervision. The value of 43.11 the in-kind donations must be 43.12 determined by the commissioner of 43.13 finance. 43.14 The city shall serve as fiscal agent to 43.15 complete the study under the 1997 43.16 regional planning joint powers 43.17 agreement among the cities of Mankato, 43.18 North Mankato, and Eagle Lake; the 43.19 counties of Nicollet and Blue Earth; 43.20 and the towns of Mankato, South Bend, 43.21 Lime, Decoria, and Belgrade, without 43.22 limitation on the rights of the parties 43.23 to that agreement to add or remove 43.24 members. The study is intended as an 43.25 alternative to community-based 43.26 planning. The study is intended to 43.27 develop information and analysis to 43.28 provide guidance on such issues as: 43.29 (1) the development of joint planning 43.30 agreements to implement a unified 43.31 growth management strategy; 43.32 (2) joint service ventures, such as 43.33 planning or zoning administration in 43.34 urban fringe areas; 43.35 (3) orderly growth and annexation 43.36 agreements between cities and 43.37 townships; 43.38 (4) feedlot regulations in urban fringe 43.39 areas and future growth corridors; 43.40 (5) service strategies for unsewered 43.41 subdivisions; 43.42 (6) other joint ventures for city, 43.43 county, and township service delivery 43.44 in fringe areas; 43.45 (7) feasibility of a rural township 43.46 taxing district; and 43.47 (8) alternatives to the current 43.48 community-based planning legislation 43.49 that would add flexibility and improve 43.50 the planning process. 43.51 The city of Mankato shall report the 43.52 results of the study to the legislature 43.53 by January 15, 2002. 43.54 Sec. 60. Laws 1999, chapter 250, article 1, section 14, 43.55 subdivision 3, is amended to read: 43.56 Subd. 3. Information and 43.57 Management Services 44.1 16,643,000 9,932,000 44.2$100,000 the first year is for a grant44.3to the city of Mankato to complete the44.4Mankato area growth management and44.5planning study, phase 2. The44.6appropriation is available until June44.730, 2002. The appropriation must be44.8matched by an in-kind donation of44.9$100,000 in administrative, technical,44.10and higher educational internship44.11support and supervision. The value of44.12the in-kind donations must be44.13determined by the commissioner of44.14finance.44.15The city shall serve as fiscal agent to44.16complete the study under the 199744.17regional planning joint powers44.18agreement among the cities of Mankato,44.19North Mankato, and Eagle Lake; the44.20counties of Nicollet and Blue Earth;44.21and the towns of Mankato, South Bend,44.22Lime, Decoria, and Belgrade, without44.23limitation on the rights of the parties44.24to that agreement to add or remove44.25members. The study is intended as an44.26alternative to community-based44.27planning. The study is intended to44.28develop information and analysis to44.29provide guidance on such issues as:44.30(1) the development of joint planning44.31agreements to implement a unified44.32growth management strategy;44.33(2) joint service ventures, such as44.34planning or zoning administration in44.35urban fringe areas;44.36(3) orderly growth and annexation44.37agreements between cities and44.38townships;44.39(4) feedlot regulations in urban fringe44.40areas and future growth corridors;44.41(5) service strategies for unsewered44.42subdivisions;44.43(6) other joint ventures for city,44.44county, and township service delivery44.45in fringe areas;44.46(7) feasibility of a rural township44.47taxing district; and44.48(8) alternatives to the current44.49community-based planning legislation44.50that would add flexibility and improve44.51the planning process.44.52The city of Mankato shall report the44.53results of the study to the legislature44.54by January 15, 2002.44.55 $6,839,000 the first year is a one-time 44.56 appropriation to upgrade the human 44.57 resources and payroll system and is 44.58 available until June 30, 2003. The 44.59 commissioner shall report on the 45.1 progress of this project to the chairs 45.2 of the legislative committees 45.3 responsible for this budget item by 45.4 January 15, 2000, 2001, and 2002. 45.5 The commissioner of finance shall work 45.6 with the commissioners of employee 45.7 relations and administration and shall 45.8 develop as part of the human resource 45.9 and payroll systems upgrade, and submit 45.10 to the chairs of the senate 45.11 governmental operations budget division 45.12 and the house state government finance 45.13 committee by January 15, 2000, a 45.14 long-range plan for the statewide 45.15 business systems: human resources, 45.16 payroll, accounting, and procurement. 45.17 The plan must detail each system's 45.18 original development costs, its 45.19 expected life cycle, the estimated cost 45.20 of upgrading software to newer versions 45.21 during its life cycle, its operating 45.22 costs to date, and the factors that are 45.23 expected to drive future operating 45.24 costs within the departments of 45.25 finance, administration, and employee 45.26 relations. The plan must also include 45.27 an evaluation of and recommendations on 45.28 whether, for the statewide business 45.29 systems, the state should use software 45.30 that is developed and maintained in 45.31 house; proprietary software, either 45.32 modified or unmodified; a private 45.33 vendor; or a particular combination of 45.34 these options. 45.35 The commissioner of finance, in 45.36 consultation with senate and house 45.37 fiscal staff and the commissioner of 45.38 administration, shall develop 45.39 recommendations for inclusion in the 45.40 governor's fiscal year 2002-2003 budget 45.41 document on the presentation of 45.42 internal service funds. The 45.43 commissioner of finance shall submit 45.44 the recommendations to the chairs of 45.45 the senate governmental operations 45.46 budget division and the house state 45.47 government finance committee by January 45.48 15, 2000. 45.49 The department shall prepare a separate 45.50 budget book for the biennium beginning 45.51 July 1, 2001, containing all of the 45.52 administration's technology 45.53 initiatives. The book must also 45.54 include a complete inventory of 45.55 state-owned and leased technology, 45.56 along with a projected replacement 45.57 schedule. The inventory must include 45.58 information on how the technology fits 45.59 into the state's master plan. 45.60 Sec. 61. Laws 1999, chapter 250, article 1, section 18, is 45.61 amended to read: 45.62 Sec. 18. VETERANS AFFAIRS 5,885,000 4,369,000 45.63 $1,544,000 the first year and 45.64 $1,544,000 the second year are for 46.1 emergency financial and medical needs 46.2 of veterans. If the appropriation for 46.3 either year is insufficient, the 46.4 appropriation for the other year is 46.5 available for it. 46.6 $12,000 the first year and $13,000 the 46.7 second year are one-time funding to 46.8 provide grants to local veterans' 46.9 organizations that provide 46.10 transportation services for veterans to 46.11 veterans administration medical 46.12 facilities. 46.13 The commissioner of veterans affairs, 46.14 in cooperation with the board of 46.15 directors of the Minnesota veterans 46.16 homes and the United States Veterans 46.17 Administration, shall study the 46.18 feasibility and desirability of 46.19 supplementing the missions of the 46.20 veterans homes and the Veterans 46.21 Administration hospitals in Minnesota 46.22 by entering into agreements with health 46.23 care providers throughout the state to 46.24 provide free or reduced-cost 46.25 comprehensive health care to veterans 46.26 close to their places of residence as a 46.27 supplement to private health 46.28 insurance. The commissioner shall 46.29 report the results of the study and any 46.30 recommendations to the legislature by 46.31 January 15, 2000. 46.32 With the approval of the commissioner 46.33 of finance, the commissioner of 46.34 veterans affairs may transfer the 46.35 unencumbered balance from the veterans 46.36 relief program to other department 46.37 programs during the fiscal year. 46.38 Before the transfer, the commissioner 46.39 of veterans affairs shall explain why 46.40 the unencumbered balance exists. The 46.41 amounts transferred must be identified 46.42 to the chairs of the senate 46.43 governmental operations budget 46.44 committee and the house state 46.45 government finance committee. 46.46 $275,000 the first year and $275,000 46.47 the second year are for a grant to the 46.48 Vinland National Center. 46.49 $1,485,000 the first year is to make 46.50 bonus payments authorized under 46.51 Minnesota Statutes, section 197.79. 46.52 The appropriation may not be used for 46.53 administrative purposes. The 46.54 appropriation does not expire until the 46.55 commissioner acts on all applications 46.56 submitted under Minnesota Statutes, 46.57 section 197.79. 46.58 $105,000 the first year is to 46.59 administer the bonus program 46.60 established under Minnesota Statutes, 46.61 section 197.79. The appropriation does 46.62 not expire until the commissioner acts 46.63 on all the applications submitted under 46.64 Minnesota Statutes, section 197.79. 47.1 $233,000 the first year and $235,000 47.2 the second year are for grants to 47.3 county veterans offices for training of 47.4 county veterans service officers and to 47.5 improve efficiency of county veterans 47.6 services offices. 47.7 Sec. 62. Laws 1999, chapter 250, article 1, section 116, 47.8 is amended to read: 47.9 Sec. 116. [EFFECTIVE DATE.] 47.10 (a) Section 41 is effective January 1, 2001. Section 43 is 47.11 effective July 1, 2000, with respect to preparation of the model 47.12 policies and procedures by the commissioner of administration, 47.13 and January 1, 2001, with respect to the other provisions of 47.14 section 43. 47.15 (b) Sections 62 to 64 and 93 are effectiveJanuaryAugust 47.16 1, 2001. 47.17 (c) Sections 94 to 100 are effective the day following 47.18 final enactment. 47.19 (d) Sections 47, 49, 55, and 115, paragraphs (d) and (g), 47.20 are effective July 1, 2001. 47.21 (e) Section 61 is effective the day following final 47.22 enactment and applies only to contracts executed on or after 47.23 that date. 47.24 (f) The commissioner of employee relations may not 47.25 implement the long-term care insurance plan under section 78 47.26 until April 1, 2000. 47.27 Sec. 63. [TRANSITION.] 47.28 The house of representatives and the senate shall adopt the 47.29 rules required by sections 11 and 13 during the 2001 legislative 47.30 session and implement them beginning in the legislative session 47.31 2002. 47.32 Sec. 64. [AMATEUR SPORTS COMMISSION REPORT.] 47.33 The amateur sports commission must report to the 47.34 legislature by January 15, 2001, on a plan to combine the 47.35 commission with the Minnesota state high school league. 47.36 Sec. 65. [MINORITY RECRUITMENT.] 47.37 The commissioner of employee relations must develop and 47.38 implement a plan to recruit and retain minority employees in 48.1 state government. As part of the recruitment plan, the 48.2 commissioner must build connections with minority centers and 48.3 with entities that work with minority persons looking for jobs 48.4 or training. As part of the retention plan, the commissioner 48.5 must work with minority state employees and minority former 48.6 state employees to: (1) find out what barriers they encountered 48.7 in seeking state employment; (2) find out what problems these 48.8 employees have encountered in their work; and (3) develop a 48.9 program to improve retention rates of minority employees. The 48.10 commissioner must report the plan to the legislature by January 48.11 15, 2001. 48.12 Sec. 66. [GOVERNOR'S STAFF.] 48.13 During the biennium ending June 30, 2001, the governor's 48.14 office may not include more than three legislative relations 48.15 staff. The amount saved by reducing the number of legislative 48.16 relations staff may be used to provide increased security for 48.17 the governor. 48.18 Sec. 67. [MINNESOTA POET LAUREATE.] 48.19 The humanities commission must develop a plan for the 48.20 selection of a Minnesota Poet Laureate. The commission must 48.21 present the plan to the legislature by January 15, 2001. 48.22 Sec. 68. [SUSPENSION OF TELECOMMUNICATIONS FACILITIES 48.23 INSTALLATION.] 48.24 The commissioners of administration and transportation may 48.25 not allow further installation of facilities under the contract 48.26 that is the subject of an Order of the Federal Communications 48.27 Commission in CC Docket No. 98-1 denying the Petition for 48.28 Declaratory Ruling filed by the state of Minnesota or amend that 48.29 contract until the house and senate governmental operations 48.30 committees approve amendments to the contract that will 48.31 eliminate the possible anticompetitive effects noted in the FCC 48.32 order and meet the requirements of section 253 of the federal 48.33 Telecommunications Act of 1996, Public Law Number 104-104. 48.34 Sec. 69. [CLARIFICATION; EFFECT ON REPEAL.] 48.35 Laws 1999, chapter 250, article 3, does not repeal rules or 48.36 fees in effect on the day before the effective date of Laws 49.1 1999, chapter 250, article 3. 49.2 Sec. 70. [ENERGY RULES FOR RESIDENTIAL BUILDINGS.] 49.3 The provisions of Minnesota Rules, chapter 7670, that apply 49.4 to category 1 buildings govern residential buildings not covered 49.5 by Minnesota Rules, chapter 7676. The provisions of Minnesota 49.6 Rules, chapter 7670, that allow category 2 buildings are void 49.7 and of no effect. All buildings subject to Minnesota Rules, 49.8 chapter 7670, attaining a building permit on or after April 15, 49.9 2000, must meet the requirements for category 1 buildings as set 49.10 out in Minnesota Rules, chapter 7670. 49.11 Sec. 71. [RATIFICATIONS.] 49.12 Subdivision 1. [COUNCIL 6.] The labor agreement between 49.13 the state of Minnesota and the American federation of state, 49.14 county, and municipal employees, council 6, approved by the 49.15 legislative coordinating commission subcommittee on employee 49.16 relations on September 10, 1999, is ratified. 49.17 Subd. 2. [RESIDENTIAL SCHOOLS TEACHERS.] The labor 49.18 agreement between the state of Minnesota and the state 49.19 residential schools education association, approved by the 49.20 legislative coordinating commission subcommittee on employee 49.21 relations on December 13, 1999, is ratified. 49.22 Subd. 3. [SUPERVISORS.] The labor agreement between the 49.23 state of Minnesota and the middle management association, 49.24 approved by the legislative coordinating commission subcommittee 49.25 on employee relations on December 13, 1999, is ratified. 49.26 Subd. 4. [NURSES.] The labor agreement between the state 49.27 of Minnesota and the Minnesota nurses association, approved by 49.28 the legislative coordinating commission subcommittee on employee 49.29 relations on December 13, 1999, is ratified. 49.30 Subd. 5. [COMMUNITY COLLEGE FACULTY.] The labor agreement 49.31 between the state of Minnesota and the Minnesota community 49.32 college faculty association, approved by the legislative 49.33 coordinating commission subcommittee on employee relations on 49.34 December 13, 1999, is ratified. 49.35 Subd. 6. [STATE UNIVERSITY FACULTY.] The labor agreement 49.36 between the state of Minnesota and the interfaculty 50.1 organization, approved by the legislative coordinating 50.2 commission subcommittee on employee relations on December 13, 50.3 1999, is ratified. 50.4 Subd. 7. [TECHNICAL COLLEGE FACULTY.] The labor agreement 50.5 between the state of Minnesota and the united technical college 50.6 educators, approved by the legislative coordinating commission 50.7 subcommittee on employee relations on December 13, 1999, is 50.8 ratified. 50.9 Subd. 8. [STATE UNIVERSITY ADMINISTRATIVE AND SERVICE 50.10 FACULTY.] The labor agreement between the state of Minnesota and 50.11 the Minnesota state university association of administrative and 50.12 service faculty, approved by the legislative coordinating 50.13 commission subcommittee on employee relations on December 13, 50.14 1999, is ratified. 50.15 Subd. 9. [COMMISSIONER'S PLAN.] The commissioner's plan 50.16 for unrepresented employees, approved by the legislative 50.17 coordinating commission subcommittee on employee relations on 50.18 December 13, 1999, and as amended by the subcommittee on January 50.19 31, 2000, is ratified. 50.20 Subd. 10. [MANAGERIAL PLAN.] The plan for managerial 50.21 employees, approved by the legislative coordinating commission 50.22 subcommittee on employee relations on December 13, 1999, and as 50.23 amended by the subcommittee on January 31, 2000, is ratified. 50.24 Subd. 11. [UNREPRESENTED MANAGERS; MINNESOTA STATE 50.25 COLLEGES AND UNIVERSITIES.] The plan for administrators of the 50.26 Minnesota state colleges and universities, approved by the 50.27 legislative coordinating commission subcommittee on employee 50.28 relations on December 13, 1999, is ratified. 50.29 Subd. 12. [PROFESSIONAL EMPLOYEES.] The labor agreement 50.30 between the state of Minnesota and the Minnesota association of 50.31 professional employees, approved by the legislative coordinating 50.32 commission subcommittee on employee relations on January 31, 50.33 2000, is ratified. 50.34 Subd. 13. [LAW ENFORCEMENT.] The labor agreement between 50.35 the state of Minnesota and the Minnesota law enforcement 50.36 association, approved by the legislative coordinating commission 51.1 subcommittee on employee relations on January 31, 2000, is 51.2 ratified. 51.3 Subd. 14. [CORRECTIONAL GUARDS.] The arbitration award and 51.4 labor agreement between the state of Minnesota and the American 51.5 federation of state, county, and municipal employees, council 6, 51.6 approved by the legislative coordinating commission subcommittee 51.7 on employee relations on January 31, 2000, is ratified. 51.8 Subd. 15. [UNREPRESENTED EMPLOYEES, HIGHER EDUCATION 51.9 SERVICES OFFICE.] The plan for unrepresented, unclassified 51.10 employees of the higher education services office, approved by 51.11 the legislative coordinating commission subcommittee on employee 51.12 relations on January 31, 2000, is ratified. 51.13 Subd. 16. [SALARIES FOR CERTAIN HEADS OF STATE 51.14 AGENCIES.] The proposals to increase the salaries of certain 51.15 heads of state agencies, approved by the legislative 51.16 coordinating commission subcommittee on employee relations on 51.17 January 31, 2000, are ratified. 51.18 Subd. 17. [SALARY FOR THE DIRECTOR OF THE HIGHER EDUCATION 51.19 SERVICES OFFICE.] The proposal to increase the salary of the 51.20 director of the higher education services office, recommended by 51.21 the legislative coordinating commission subcommittee on employee 51.22 relations on February 22, 2000, is ratified. 51.23 Subd. 18. [GOVERNOR.] The salary of the governor is 51.24 $150,000. 51.25 Sec. 72. [OUTSIDE MANAGEMENT CONTRACT.] 51.26 The zoo board must issue a request for proposal by 51.27 September 1, 2000, for a private vendor to provide management 51.28 services for the Minnesota Zoological Garden. 51.29 Sec. 73. [MEMORANDUM OF UNDERSTANDING.] 51.30 The commissioner of employee relations may not execute a 51.31 memorandum of understanding relating to employee compensation 51.32 for travel time with an exclusive representative of a bargaining 51.33 unit until after it has been approved by the legislative 51.34 coordinating commission under Minnesota Statutes, section 51.35 3.855. When the legislature is not in session, failure of the 51.36 commission to disapprove a memorandum of understanding within 30 52.1 days of submission constitutes approval. 52.2 Sec. 74. [ALLOCATION OF COSTS OF CERTAIN BOUNDARY 52.3 ADJUSTMENT MATTERS.] 52.4 All costs of any boundary adjustment matter commenced 52.5 before June 1, 1999, that is concluded after that date under an 52.6 alternative dispute resolution process as directed by the 52.7 director of the office of strategic and long-range planning, 52.8 must be allocated as provided in law and rule prior to the 52.9 abolition of the Minnesota municipal board. The maximum total 52.10 amount the parties may be charged by the office of strategic and 52.11 long-range planning, the office of administrative hearings, or 52.12 as part of an arbitration is no more than the Minnesota 52.13 municipal board could have charged if the matter had been heard 52.14 and decided by the board. Costs that exceed what the municipal 52.15 board could have charged must be paid by the office of strategic 52.16 and long-range planning. 52.17 Sec. 75. [REPEALER.] 52.18 (a) Minnesota Statutes 1998, section 16B.88; and Minnesota 52.19 Statutes 1999 Supplement, section 43A.318, are repealed. 52.20 (b) Minnesota Statutes 1998, sections 16E.01, subdivisions 52.21 2 and 3; 16E.03, subdivisions 1 and 3; 16E.04, subdivision 1; 52.22 16E.05; 16E.06; 16E.07, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, 52.23 and 11; and 136F.59, subdivision 3; Minnesota Statutes 1999 52.24 Supplement, sections 16E.01, subdivision 1; 16E.02; 16E.03, 52.25 subdivisions 2, 4, 5, 6, 7, and 8; 16E.04, subdivision 2; 52.26 16E.07, subdivision 4; and 16E.08, are repealed. 52.27 (c) Minnesota Statutes 1998, sections 465.795; 465.796; 52.28 465.797, subdivisions 2, 3, 4, 5, 6, and 7; 465.7971; 465.798; 52.29 465.799; 465.801; 465.802; 465.803; 465.81; 465.82, subdivisions 52.30 1, 2, and 3; 465.83; 465.84; 465.85; 465.86; 465.87; and 465.88; 52.31 Minnesota Statutes 1999 Supplement, sections 465.797, 52.32 subdivisions 1 and 5a; and 465.82, subdivision 4, are repealed. 52.33 (d) Laws 1999, chapter 250, article 1, section 15, 52.34 subdivision 4, is repealed. 52.35 (e) Laws 1999, chapter 135, section 9, is repealed. 52.36 (f) Minnesota Rules, parts 7672.0100; 7672.0200; 7672.0300; 53.1 7672.0400; 7672.0500; 7672.0600; 7672.0700; 7672.0800; 53.2 7672.0900; 7672.1000; 7672.1100; 7672.1200; 7672.1300; 53.3 7674.0100; 7674.0200; 7674.0300; 7674.0400; 7674.0500; 53.4 7674.0600; 7674.0700; 7674.0800; 7674.0900; 7674.1000; 53.5 7674.1100; and 7674.1200, are repealed. 53.6 (g) Minnesota Statutes 1998, section 16B.37, subdivisions 53.7 1, 2, and 3, are repealed. 53.8 Sec. 76. [EFFECTIVE DATE.] 53.9 Section 12 is effective January 2, 2001. Section 14 is 53.10 effective the day after a like commission is authorized by the 53.11 appropriate authority of the government of Ontario. Section 16 53.12 is effective July 1, 2000. Section 19 is effective January 2, 53.13 2003, and applies to a person who leaves office or employment 53.14 after that date. Sections 15, 44, and 75, paragraph (c), are 53.15 effective June 30, 2000. Sections 70 and 75, paragraphs (e) and 53.16 (f), are effective April 15, 2000. Sections 33, 56, and 58 are 53.17 effective the day following final enactment, and apply to any 53.18 contract for project development and construction entered into 53.19 on or after that date, including projects for which requests for 53.20 bids, qualifications, or proposals have been sought before that 53.21 date. Except as otherwise provided in this article, this 53.22 article is effective the day following final enactment. 53.23 ARTICLE 2 53.24 RETIREMENT HEALTH CARE PROVISIONS 53.25 Section 1. [352G.01] [DEFINITIONS.] 53.26 Subdivision 1. [TERMS.] Unless the language or context 53.27 clearly indicates that a different meaning is intended, the 53.28 terms defined in this section, for the purposes of this chapter, 53.29 have the meanings given them. 53.30 Subd. 2. [INCLUDED PARTICIPANTS.] "Included participants" 53.31 means persons contributing to a retirement plan under chapter 53.32 3A, 352, 352B, 352D, or 490 on or after July 1, 2000. 53.33 Subd. 3. [ELIGIBLE RETIRED EMPLOYEE.] "Eligible retired 53.34 employee" means a former employee who is drawing monthly 53.35 retirement benefits under chapter 3A, 352, 352B, 352D, or 490, 53.36 and who has at least 15 years of allowable service and was 54.1 eligible to draw retirement benefits at the time of separation 54.2 from state service. 54.3 Subd. 4. [DISABLED EMPLOYEE.] "Disabled employee" means an 54.4 employee who has been determined disabled under chapter 3A, 352, 54.5 352B, 352D, or 490. 54.6 Subd. 5. [INELIGIBLE TERMINATED EMPLOYEE.] "Ineligible 54.7 terminated employee" means a former state employee who is not 54.8 eligible for benefits from the health care reimbursement plan. 54.9 Subd. 6. [ACCUMULATED CONTRIBUTIONS.] "Accumulated 54.10 contributions" means the total deductions made from the salary 54.11 of an employee into the health care reimbursement plan. 54.12 Subd. 7. [HEALTH CARE REIMBURSEMENT FUND.] The "health 54.13 care reimbursement fund" includes the total accumulated 54.14 contributions and any investment return attributable to the 54.15 contributions. 54.16 Subd. 8. [ALLOWABLE SERVICE.] "Allowable service" means 54.17 allowable service under chapter 3A, 352, 352B, 352D, or 490 54.18 except any allowable service reinstated by repaying a refund on 54.19 or after July 1, 2000. 54.20 Subd. 9. [SALARY.] "Salary" means wages, or other periodic 54.21 compensation paid to an employee before deductions for deferred 54.22 compensation, supplemental retirement plans, or other voluntary 54.23 salary reduction programs. Lump sum sick leave payments, 54.24 severance payments, lump sum annual leave payments and overtime 54.25 payments made at the time of separation from state service, 54.26 payments in lieu of any employee-paid group insurance coverage, 54.27 including the difference between single and family rates that 54.28 may be paid to an employee with single coverage, and payments 54.29 made as an employer-paid fringe benefit, workers' compensation 54.30 payments, employer contributions to a deferred compensation or 54.31 tax-sheltered annuity program, and amounts contributed under a 54.32 benevolent vacation and sick leave donation program, are not 54.33 salary. 54.34 Subd. 10. [DESIGNATED BENEFICIARY.] "Designated 54.35 beneficiary" means the designated beneficiary established by the 54.36 included participants or eligible retired employees under the 55.1 retirement plan under chapter 3A, 352, 352B, 352D, or 490. 55.2 Subd. 11. [EXECUTIVE DIRECTOR.] "Executive director" means 55.3 the executive director of the Minnesota state retirement system 55.4 under section 352.03, subdivision 5. 55.5 Subd. 12. [BOARD.] "Board" means the board of directors of 55.6 the Minnesota state retirement system established under section 55.7 352.03. 55.8 Subd. 13. [EMPLOYEE.] "Employee" means a person 55.9 contributing to a retirement plan under chapter 3A, 352, 352B, 55.10 352D, or 490. 55.11 Sec. 2. [352G.02] [HEALTH CARE REIMBURSEMENT PLAN.] 55.12 Subdivision 1. [ESTABLISHMENT.] There is established the 55.13 health care reimbursement plan for state employees covered under 55.14 chapter 3A, 352, 352B, 352D, or 490. This plan must meet 55.15 qualification requirements under the Internal Revenue Code, 55.16 section 401(h), to ensure that both contributions and benefit 55.17 payments are tax free. 55.18 Subd. 2. [EMPLOYEES COVERED.] Every employee contributing 55.19 to a plan under chapter 3A, 352, 352B, 352D, or 490 on or after 55.20 July 1, 2000, is covered by the health care reimbursement plan. 55.21 Acceptance of employment or continuance in service in which 55.22 contributions are made under chapter 3A, 352, 352B, 352D, or 490 55.23 is deemed consent to have deductions made from salary for 55.24 deposit to the credit of the account of the employee in the 55.25 health care reimbursement plan. 55.26 Sec. 3. [352G.03] [COVERAGE TERMINATION.] 55.27 Coverage of any person under the health care reimbursement 55.28 plan ends when the person ceases to be an employee or is no 55.29 longer covered by a pension plan under chapter 3A, 352, 352B, 55.30 352D, or 490. 55.31 Sec. 4. [352G.04] [APPEALS PROCEDURE.] 55.32 If someone wishes to appeal a decision made by the 55.33 executive director, the appeal procedure established under 55.34 section 352.031 must be followed. 55.35 Sec. 5. [352G.05] [STATE EMPLOYEES HEALTH CARE 55.36 REIMBURSEMENT FUND, CONTRIBUTIONS BY EMPLOYEE AND EMPLOYER.] 56.1 Subdivision 1. [FUND CREATED.] There is created a special 56.2 fund to be known as the state employees health care 56.3 reimbursement fund. Employee contributions, investment returns, 56.4 and any other amounts authorized by law shall be deposited in 56.5 this account. 56.6 Subd. 2. [EMPLOYEE CONTRIBUTIONS.] The employee 56.7 contribution to the fund must be equal to 0.75 percent of salary. 56.8 These contributions must be made by deduction from salary as 56.9 provided in section 352.04, subdivision 4. 56.10 Subd. 3. [OMITTED SALARY DEDUCTIONS.] If a department 56.11 fails to take deductions from an employee's salary as provided 56.12 in this section, the collection of omitted deduction must be 56.13 made in accordance with section 352.04, subdivision 8, 56.14 paragraphs (a), (b), and (c). 56.15 Subd. 4. [ERRONEOUS DEDUCTIONS; CANCELED 56.16 WARRANTS.] Deductions taken from the salary of an employee for 56.17 the health care reimbursement fund in error must, upon discovery 56.18 and verification by the department making the deduction, be 56.19 refunded to the employee in accordance with section 352.04, 56.20 subdivision 9. 56.21 Subd. 5. [FUND DISBURSEMENT RESTRICTED.] The health care 56.22 reimbursement fund must be disbursed only for the purposes 56.23 provided by law. The expenses of the health care reimbursement 56.24 plan and any benefits provided by law must be paid from the 56.25 health care reimbursement fund. Refunds under section 352G.10, 56.26 subdivisions 1 and 2, must be paid from the contributions prior 56.27 to being invested in the health care reimbursement fund. 56.28 Sec. 6. [352G.06] [STATE TREASURER TO BE TREASURER OF THE 56.29 HEALTH CARE REIMBURSEMENT FUND.] 56.30 The state treasurer and the treasurer's successor is ex 56.31 officio treasurer of the health care reimbursement fund. The 56.32 general bond to the state shall cover all liability for actions 56.33 as treasurer of these funds. Funds of the system received by 56.34 the treasurer must be set aside in the state treasury and 56.35 credited to the health care reimbursement fund. The treasurer 56.36 and the treasurer's successor shall deliver to the executive 57.1 director copies of all payroll abstracts of the state together 57.2 with the commissioner of finance's warrants covering the 57.3 deductions made on these payroll abstracts for the health care 57.4 reimbursement fund. The executive director shall have a list 57.5 made of the commissioner of finance's warrants. These warrants 57.6 must then be deposited with the state treasurer or the 57.7 treasurer's successor to be credited to the health care 57.8 reimbursement fund. The treasurer shall pay out of this fund 57.9 only on warrants issued by the commissioner of finance, upon 57.10 abstracts signed by the director, or by the finance officer 57.11 designated by the director during the disability or the absence 57.12 of the director. Abstracts for investments may be signed by the 57.13 executive director of the state board of investment. 57.14 Sec. 7. [352G.07] [INVESTMENT BOARD TO INVEST FUNDS.] 57.15 The director shall, from time to time, certify to the state 57.16 board of investment any portions of the health care 57.17 reimbursement fund that in the judgment of the director are not 57.18 required for immediate use. The state board of investment shall 57.19 invest and reinvest sums so transferred, or certified, in 57.20 securities that are duly authorized legal investments under 57.21 section 11A.24. Amounts invested in the health care 57.22 reimbursement fund must be accounted for separately from the 57.23 retirement funds invested by the investment board. 57.24 Sec. 8. [352G.08] [HEALTH CARE REIMBURSEMENT PLAN 57.25 BENEFITS.] 57.26 Subdivision 1. [AGE AND SERVICE REQUIREMENTS.] After 57.27 separation from service, an employee who has attained the age of 57.28 at least 60, who has at least 15 years of allowable service, and 57.29 is immediately eligible for retirement or disability benefits or 57.30 an employee who qualifies for the rule of 90 regardless of age, 57.31 is entitled upon application to benefits from the health care 57.32 reimbursement plan as long as the employee has not accepted a 57.33 refund under section 352G.10, subdivisions 1 and 2, or has 57.34 repaid all refunds to the health care reimbursement plan under 57.35 section 352G.10, subdivision 4. Benefits are not payable to an 57.36 eligible disabled employee who is no longer collecting 58.1 disability or retirement benefits. 58.2 Subd. 2. [BENEFIT SCHEDULE.] Those meeting the eligibility 58.3 requirements in subdivision 1 will be entitled to the following 58.4 monthly benefits: 58.5 Retirement Date Monthly Benefits 58.6 July 1, 2000 - June 30, 2002 $20 58.7 July 1, 2002 - June 30, 2003 $25 58.8 July 1, 2003 - June 30, 2004 $30 58.9 July 1, 2004 - June 30, 2005 $40 58.10 July 1, 2005 - June 30, 2006 $50 58.11 July 1, 2006 - June 30, 2007 $60 58.12 July 1, 2007 - June 30, 2008 $75 58.13 July 1, 2008 - June 30, 2009 $90 58.14 July 1, 2009 - June 30, 2010 $105 58.15 July 1, 2010 - June 30, 2011 $120 58.16 July 1, 2011 - June 30, 2012 $135 58.17 July 1, 2012 - June 30, 2013 $150 58.18 July 1, 2013 - and after $165 58.19 Subd. 3. [PAYMENTS.] The first monthly payment will begin 58.20 on July 1, 2002, and will be based on the schedule above. No 58.21 monthly payments will be made prior to July 1, 2002. Payments 58.22 will be paid directly to the eligible retired employee, but only 58.23 upon providing documentation that the money is used to offset 58.24 health insurance premiums or any other health expenses to meet 58.25 the requirements under the Internal Revenue Code, section 401(h). 58.26 At the discretion of the executive director, payments may be 58.27 added to the monthly retirement checks received by the eligible 58.28 retired employee. 58.29 Subd. 4. [TERMINATION OF BENEFITS.] Monthly benefits will 58.30 terminate upon the death of the member and will not continue to 58.31 a survivor or designated beneficiary. 58.32 Sec. 9. [352G.09] [ANNUAL INCREASES, CALCULATION OF HEALTH 58.33 INSURANCE PLAN INFLATION ADJUSTMENT.] 58.34 (a) Annually, following June 30, the Minnesota state 58.35 retirement system shall use the procedures in paragraph (b) to 58.36 determine whether an inflation adjustment is payable and to 59.1 determine the amount of the adjustment. 59.2 (b) If the medical inflation index increases from June 30 59.3 of the preceding year to June 30 of the current year, the 59.4 Minnesota state retirement system shall certify the percentage 59.5 increase. The amount certified is the lesser of the medical 59.6 inflation index or three percent. The board, at its discretion, 59.7 can decrease the adjustment in any year in order to maintain the 59.8 financial integrity of the health insurance plan which includes 59.9 avoiding projected unfunded liability. The board will seek 59.10 advice from an approved actuary in determining if the inflation 59.11 adjustment should be lowered. 59.12 (c) If an increase is payable, it will be made the 59.13 following January 1. An eligible retired employee who has been 59.14 receiving health insurance reimbursement benefits for at least 59.15 12 months as of the current June 30 is eligible to receive a 59.16 full insurance plan inflation adjustment. An eligible retired 59.17 employee who has been receiving a health insurance benefit for 59.18 at least one full month, but less than 12 full months as of the 59.19 current June 30, is eligible to receive a partial inflation 59.20 adjustment as follows: 59.21 Month Retired Fraction of the Increase 59.22 July 11/12 59.23 August 10/12 59.24 September 9/12 59.25 October 8/12 59.26 November 7/12 59.27 December 6/12 59.28 January 5/12 59.29 February 4/12 59.30 March 3/12 59.31 April 2/12 59.32 May 1/12 59.33 Sec. 10. [352G.10] [REFUND OF EMPLOYEE CONTRIBUTIONS.] 59.34 Subdivision 1. [REFUND.] An ineligible terminated 59.35 employee, an eligible retired employee who has not yet begun 59.36 collecting benefits, or an employee who moves to a state 60.1 position no longer covered by chapter 3A, 352, 352B, 352D, or 60.2 490 may apply for a refund provided in subdivision 2. 60.3 Application for a refund may be made after the termination of 60.4 service if the applicant has not again become an employee 60.5 required to be covered by the system. 60.6 Subd. 2. [AMOUNT OF REFUND.] The refund payable to a 60.7 person defined in subdivision 1 is an amount equal to employee 60.8 contributions plus interest at a rate of five percent per year 60.9 compounded annually. The amount of the refund is paid from 60.10 contributions paid under section 352G.05 prior to the money 60.11 being invested in the health care reimbursement fund. 60.12 Subd. 3. [TERMINATION OF RIGHTS.] When an ineligible 60.13 terminated employee or an eligible retired employee accepts a 60.14 refund as provided in subdivision 2, all existing service and 60.15 all rights and benefits to which the employee was entitled 60.16 before accepting the refund terminate. 60.17 Subd. 4. [REPAYMENT OF REFUND.] An included participant 60.18 may repay a refund paid under subdivision 2 by paying the amount 60.19 refunded plus 8.5 percent interest compounded annually. All 60.20 refunds must be paid before termination or within one month 60.21 following termination of state service. 60.22 Sec. 11. [352G.11] [PAYMENTS UPON THE DEATH OF AN INCLUDED 60.23 PARTICIPANT.] 60.24 Upon the death of an included participant or a person not 60.25 yet collecting monthly benefits under this section, the 60.26 designated beneficiary is entitled to a refund of contributions 60.27 plus five percent interest, compounded annually. 60.28 Sec. 12. [352G.12] [PAYMENT UPON THE DEATH OF AN ELIGIBLE 60.29 RETIRED EMPLOYEE.] 60.30 Upon the death of an eligible retired employee who has 60.31 started collecting monthly benefits, the designated beneficiary 60.32 is entitled to a refund of the eligible retired employee's 60.33 contributions plus three percent interest compounded annually 60.34 until the date of termination of service less the monthly 60.35 benefits that have been paid. 60.36 Sec. 13. [FIRST INCREASE.] 61.1 An eligible or retired eligible employee would first be 61.2 eligible for an increase on January 1, 2003. The required 61.3 reserves to support the payment must be transferred on July 1, 61.4 2001. 61.5 Sec. 14. [UNLIMITED RIGHT TO AMEND.] 61.6 Notwithstanding any other provision of the health benefit 61.7 fund and provisions of the Internal Revenue Code, the provisions 61.8 governing the health care reimbursement plan may be amended at 61.9 any time and in any manner for any reason whatsoever. This 61.10 right to amend includes, but is not limited to, the right to 61.11 reduce or eliminate prospectively or retroactively any or all 61.12 health benefits under the health care reimbursement plan for any 61.13 or all persons who may be members, retirees, and other 61.14 recipients, or otherwise may be entitled to health benefits 61.15 under this plan. Benefits may be reduced or eliminated for any 61.16 or all persons including members, retirees, and other 61.17 recipients, even if they are then entitled to or are receiving 61.18 health benefits. 61.19 Sec. 15. [EFFECTIVE DATE.] 61.20 Sections 1 to 14 are effective July 1, 2000. 61.21 ARTICLE 3 61.22 MSRS-CORRECTIONAL PLAN MEMBERSHIP 61.23 INCLUSIONS 61.24 Section 1. Minnesota Statutes 1998, section 352.91, 61.25 subdivision 3c, is amended to read: 61.26 Subd. 3c. [NURSING PERSONNEL.] (a) "Covered correctional 61.27 service" means service by a state employee in one of the 61.28 employment positions at a correctional facility or at the 61.29 Minnesota security hospital specified in paragraph (b), provided 61.30 that at least 75 percent of the employee's working time is spent 61.31 in direct contact with inmates or patients and the fact of this 61.32 direct contact is certified to the executive director by the 61.33 appropriate commissioner, unless the person elects to retain the 61.34 current retirement coverage under Laws 1996, chapter 408, 61.35 article 8, section 21. 61.36 (b) The employment positions are as follows: 62.1 (1) registered nurse - senior; 62.2 (2) registered nurse; 62.3 (3) registered nurse - principal;and62.4 (4) licensed practical nurse 2; and 62.5 (5) registered nurse practitioner. 62.6 Sec. 2. Minnesota Statutes 1998, section 352.91, is 62.7 amended by adding a subdivision to read: 62.8 Subd. 3f. [ADDITIONAL DEPARTMENT OF HUMAN SERVICES 62.9 PERSONNEL.] (a) "Covered correctional service" means service by 62.10 a state employee in one of the employment positions specified in 62.11 paragraph (b) at the Minnesota security hospital or the 62.12 Minnesota sexual psychopathic personality treatment center, 62.13 provided that at least 75 percent of the employee's working time 62.14 is spent in direct contact with patients and the fact of this 62.15 direct contact is certified to the executive director by the 62.16 commissioner of human services. 62.17 (b) The employment positions are: 62.18 (1) behavior analyst 2; 62.19 (2) licensed practical nurse 1; 62.20 (3) office and administrative specialist senior; 62.21 (4) psychologist 2; 62.22 (5) social worker specialist; 62.23 (6) behavior analyst 3; and 62.24 (7) social worker senior. 62.25 Sec. 3. Minnesota Statutes 1998, section 352.91, is 62.26 amended by adding a subdivision to read: 62.27 Subd. 3g. [ADDITIONAL CORRECTIONS DEPARTMENT PERSONNEL.] 62.28 "Covered correctional service" means service by a state employee 62.29 in one of the employment positions at the designated Minnesota 62.30 correctional facility specified in paragraph (b), provided that 62.31 at least 75 percent of the employee's working time is spent in 62.32 direct contact with inmates and the fact of this direct contact 62.33 is certified to the executive director by the commissioner of 62.34 corrections. 62.35 (b) The employment positions and correctional facilities 62.36 are: 63.1 (1) corrections discipline unit supervisor, at the 63.2 Minnesota correctional facility-Faribault, the Minnesota 63.3 correctional facility-Lino Lakes, the Minnesota correctional 63.4 facility-Oak Park Heights, and the Minnesota correctional 63.5 facility-St. Cloud; 63.6 (2) dental assistant registered, at the Minnesota 63.7 correctional facility-Faribault, the Minnesota correctional 63.8 facility-Lino Lakes, the Minnesota correctional facility-Moose 63.9 Lake, the Minnesota correctional facility-Oak Park Heights, and 63.10 the Minnesota correctional facility-Red Wing; 63.11 (3) dental hygienist, at the Minnesota correctional 63.12 facility-Shakopee; 63.13 (4) psychologist 2, at the Minnesota correctional 63.14 facility-Faribault, the Minnesota correctional facility-Lino 63.15 Lakes, the Minnesota correctional facility-Moose Lake, the 63.16 Minnesota correctional facility-Oak Park Heights, the Minnesota 63.17 correctional facility-Red Wing, the Minnesota correctional 63.18 facility-St. Cloud, the Minnesota correctional 63.19 facility-Shakopee, and the Minnesota correctional 63.20 facility-Stillwater; and 63.21 (5) sentencing to service crew leader involved with the 63.22 inmate community work crew program, at the Minnesota 63.23 correctional facility-Faribault and the Minnesota correctional 63.24 facility-Lino Lakes. 63.25 Sec. 4. [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 63.26 PERSONS.] 63.27 Subdivision 1. [ELECTION OF PRIOR STATE SERVICE 63.28 COVERAGE.] (a) An employee who has future retirement coverage 63.29 transferred to the correctional employees retirement plan under 63.30 section 1 or 2 is entitled to elect to obtain prior service 63.31 credit for eligible state service performed after June 30, 1975, 63.32 and before the first day of the first full pay period beginning 63.33 after June 30, 2000, with the department of corrections or the 63.34 department of human services at the Minnesota security hospital 63.35 or the Minnesota sexual psychopathic personality treatment 63.36 center. All eligible prior service credit must be purchased. 64.1 (b) For purposes of section 1, 2, or 3, eligible state 64.2 service with the department of corrections or the department of 64.3 human services is any prior period of continuous service after 64.4 June 30, 1975, performed as an employee of the department of 64.5 corrections or the department of human services that would have 64.6 been eligible for the correctional employees retirement plan 64.7 coverage under section 1, 2, or 3 if that prior service had been 64.8 performed after the first day of the first full pay period 64.9 beginning after June 30, 2000, rather than before that date. 64.10 Service is continuous if there has been no period of 64.11 discontinuation of eligible state service for a period greater 64.12 than 180 calendar days. 64.13 (c) The commissioner of corrections or the commissioner of 64.14 human services shall certify eligible state service to the 64.15 executive director of the Minnesota state retirement system. 64.16 (d) A covered correctional plan employee employed on July 64.17 1, 2000, who has past service in a job classification covered 64.18 under section 1, 2, or 3 on July 1, 2000, is entitled to 64.19 purchase the past service if the applicable department certifies 64.20 that the employee met the eligibility requirements for 64.21 coverage. The employee shall pay the difference between the 64.22 employee contributions actually paid during the period and what 64.23 should have been paid under the correctional employees 64.24 retirement plan. Payment for past service must be completed by 64.25 June 30, 2002. 64.26 Subd. 2. [PAYMENT FOR PAST SERVICE.] (a) An employee 64.27 electing to obtain prior service credit under subdivision 1 must 64.28 pay an additional employee contribution for that prior service. 64.29 The additional member contribution is the contribution 64.30 differential percentage applied to the actual salary paid to the 64.31 employee during the period of the prior eligible state service, 64.32 plus interest at the rate of six percent per annum, compounded 64.33 annually. The contribution differential percentage is the 64.34 difference between 4.9 percent of salary and the applicable 64.35 employee contribution rate of the general state employees 64.36 retirement plan during the prior eligible state service. 65.1 (b) The additional member contribution must be paid only in 65.2 a lump sum. Payment must accompany the election to obtain prior 65.3 service credit. No election of payment may be made by the 65.4 person or accepted by the executive director after June 30, 2002. 65.5 Subd. 3. [TRANSFER OF ASSETS.] Assets must be transferred 65.6 from the general state employees retirement plan to the 65.7 correctional employees retirement plan, in an amount equal to 65.8 the present value of benefits earned under the general employees 65.9 retirement plan for each employee transferring to the 65.10 correctional employees retirement plan, as determined by the 65.11 actuary retained by the legislative commission on pensions and 65.12 retirement in accordance with Minnesota Statutes, section 65.13 356.215. The transfer of assets must be made within 45 days 65.14 after the employee elects to transfer coverage to the 65.15 correctional employees retirement plan. 65.16 Subd. 4. [EFFECT OF THE ASSET TRANSFER.] Upon transfer of 65.17 assets in subdivision 3, service credit in the general state 65.18 employees plan of the Minnesota state retirement system is 65.19 forfeited and may not be reinstated. The service credit and 65.20 transferred assets must be credited to the correctional 65.21 employees retirement plan. 65.22 Subd. 5. [PAYMENT OF ACTUARIAL CALCULATION COSTS.] (a) The 65.23 expense of the legislative commission on pensions and retirement 65.24 attributable to the calculations of its consulting actuary under 65.25 subdivision 3 must be reimbursed by the department of 65.26 corrections and the department of human services. 65.27 (b) The expense reimbursement under paragraph (a) must be 65.28 allocated between the two departments in a manner that is 65.29 jointly agreeable. If no allocation procedure is developed by 65.30 the commissioner of corrections and the commissioner of human 65.31 services, the cost must be allocated on an equally shared basis. 65.32 (c) Payment of the expense reimbursement to the legislative 65.33 commission on pensions and retirement is due 30 days after the 65.34 receipt of the reimbursement request from the executive director 65.35 of the legislative commission on pensions and retirement. 65.36 Sec. 5. [REPEALER.] 66.1 Minnesota Statutes 1998, section 352.91, subdivision 4, is 66.2 repealed. 66.3 Sec. 6. [EFFECTIVE DATE.] 66.4 Sections 1 to 5 are effective July 1, 2000. 66.5 ARTICLE 4 66.6 JUDGES RETIREMENT PLAN 66.7 MODIFICATIONS 66.8 Section 1. Minnesota Statutes 1998, section 352D.02, 66.9 subdivision 1, is amended to read: 66.10 Subdivision 1. [COVERAGE.] (a) Employees enumerated in 66.11 paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 66.12 are in the unclassified service of the state or metropolitan 66.13 council and are eligible for coverage under the general state 66.14 employees retirement plan under chapter 352, are participants in 66.15 the unclassified program under this chapter unless the employee 66.16 gives notice to the executive director of the Minnesota state 66.17 retirement system within one year following the commencement of 66.18 employment in the unclassified service that the employee desires 66.19 coverage under the general state employees retirement plan. For 66.20 the purposes of this chapter, an employee who does not file 66.21 notice with the executive director is deemed to have exercised 66.22 the option to participate in the unclassified plan. 66.23 (b) Persons referenced in paragraph (c), clauses (1) and 66.24 (5), are participants in the unclassified program under this 66.25 chapter unless the person is eligible to elect different 66.26 coverage under section 3A.07 or 352C.011 and, after July 1, 66.27 1998, elects retirement coverage by the applicable alternative 66.28 retirement plan. Persons referenced in paragraph (c), clause 66.29 (16), are participants in the unclassified program under this 66.30 chapter for judicial employment in excess of the service credit 66.31 limit in section 490.121, subdivision 22. 66.32 (c) Enumerated employees and referenced persons are: 66.33 (1) the governor, the lieutenant governor, the secretary of 66.34 state, the state auditor, the state treasurer, and the attorney 66.35 general; 66.36 (2) an employee in the office of the governor, lieutenant 67.1 governor, secretary of state, state auditor, state treasurer, 67.2 attorney general; 67.3 (3) an employee of the state board of investment; 67.4 (4) the head of a department, division, or agency created 67.5 by statute in the unclassified service, an acting department 67.6 head subsequently appointed to the position, or an employee 67.7 enumerated in section 15A.0815 or 15A.083, subdivision 4; 67.8 (5) a member of the legislature; 67.9 (6) a permanent, full-time unclassified employee of the 67.10 legislature or a commission or agency of the legislature or a 67.11 temporary legislative employee having shares in the supplemental 67.12 retirement fund as a result of former employment covered by this 67.13 chapter, whether or not eligible for coverage under the 67.14 Minnesota state retirement system; 67.15 (7) a person who is employed in a position established 67.16 under section 43A.08, subdivision 1, clause (3), or in a 67.17 position authorized under a statute creating or establishing a 67.18 department or agency of the state, which is at the deputy or 67.19 assistant head of department or agency or director level; 67.20 (8) the regional administrator, or executive director of 67.21 the metropolitan council, general counsel, division directors, 67.22 operations managers, and other positions as designated by the 67.23 council, all of which may not exceed 27 positions at the council 67.24 and the chair, provided that upon initial designation of all 67.25 positions provided for in this clause, no further designations 67.26 or redesignations may be made without approval of the board of 67.27 directors of the Minnesota state retirement system; 67.28 (9) the executive director, associate executive director, 67.29 and not to exceed nine positions of the higher education 67.30 services office in the unclassified service, as designated by 67.31 the higher education services office before January 1, 1992, or 67.32 subsequently redesignated with the approval of the board of 67.33 directors of the Minnesota state retirement system, unless the 67.34 person has elected coverage by the individual retirement account 67.35 plan under chapter 354B; 67.36 (10) the clerk of the appellate courts appointed under 68.1 article VI, section 2, of the Constitution of the state of 68.2 Minnesota; 68.3 (11) the chief executive officers of correctional 68.4 facilities operated by the department of corrections and of 68.5 hospitals and nursing homes operated by the department of human 68.6 services; 68.7 (12) an employee whose principal employment is at the state 68.8 ceremonial house; 68.9 (13) an employee of the Minnesota educational computing 68.10 corporation; 68.11 (14) an employee of the world trade center board;and68.12 (15) an employee of the state lottery board who is covered 68.13 by the managerial plan established under section 43A.18, 68.14 subdivision 3; and 68.15 (16) a judge who has exceeded the service credit limit in 68.16 section 490.121, subdivision 22. 68.17 Sec. 2. Minnesota Statutes 1998, section 352D.04, 68.18 subdivision 2, is amended to read: 68.19 Subd. 2. [CONTRIBUTION RATES.] (a) The money used to 68.20 purchase shares under this section is the employee and employer 68.21 contributions provided in this subdivision. 68.22 (b) The employee contribution is an amount equal to the 68.23 employee contribution specified in section 352.04, subdivision 2. 68.24 (c) The employer contribution is an amount equal to six 68.25 percent of salary. 68.26 (d) These contributions must be made in the manner provided 68.27 in section 352.04, subdivisions 4, 5, and 6. 68.28 (e) For members of the legislature, the contributions under 68.29 this subdivision also must be made on per diem payments received 68.30 during a regular or special legislative session, but may not be 68.31 made on per diem payments received outside of a regular or 68.32 special legislative session, on the additional compensation 68.33 attributable to a leadership position under section 3.099, 68.34 subdivision 3, living expense payments under section 3.101, or 68.35 special session living expense payments under section 3.103. 68.36 (f) For a judge who is a member of the unclassified plan 69.1 under section 352D.02, subdivision 1, paragraph (c), clause 69.2 (16), the employee contribution rate is eight percent of salary, 69.3 and there is no employer contribution. 69.4 Sec. 3. Minnesota Statutes 1998, section 356.30, 69.5 subdivision 1, is amended to read: 69.6 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) 69.7 Notwithstanding any provisions to the contrary of the laws 69.8 governing the funds enumerated in subdivision 3, a person who 69.9 has met the qualifications of clause (2) may elect to receive a 69.10 retirement annuity from each fund in which the person has at 69.11 least six months allowable service, based on the allowable 69.12 service in each fund, subject to the provisions of clause (3). 69.13 (2) A person may receive upon retirement a retirement 69.14 annuity from each fund in which the person has at least six 69.15 months allowable service, and augmentation of a deferred annuity 69.16 calculated under the laws governing each public pension plan or 69.17 fund named in subdivision 3, from the date the person terminated 69.18 all public service if: 69.19 (a) the person has allowable service totaling an amount 69.20 that allows the person to receive an annuity in any two or more 69.21 of the enumerated funds; and 69.22 (b) the person has not begun to receive an annuity from any 69.23 enumerated fund or the person has made application for benefits 69.24 from all funds and the effective dates of the retirement annuity 69.25 with each fund under which the person chooses to receive an 69.26 annuity are within a one-year period. 69.27 (3) The retirement annuity from each fund must be based 69.28 upon the allowable service in each fund, except that: 69.29 (a) The laws governing annuities must be the law in effect 69.30 on the date of termination from the last period of public 69.31 service under a covered fund with which the person earned a 69.32 minimum of one-half year of allowable service credit during that 69.33 employment. 69.34 (b) The "average salary" on which the annuity from each 69.35 covered fund in which the employee has credit in a formula plan 69.36 shall be based on the employee's highest five successive years 70.1 of covered salary during the entire service in covered funds. 70.2 (c) The formula percentages to be used by each fund must be 70.3 those percentages prescribed by each fund's formula as continued 70.4 for the respective years of allowable service from one fund to 70.5 the next, recognizing all previous allowable service with the 70.6 other covered funds. 70.7 (d) Allowable service in all the funds must be combined in 70.8 determining eligibility for and the application of each fund's 70.9 provisions in respect to actuarial reduction in the annuity 70.10 amount for retirement prior to normal retirement. 70.11 (e) The annuity amount payable for any allowable service 70.12 under a nonformula plan of a covered fund must not be affected 70.13 but such service and covered salary must be used in the above 70.14 calculation. 70.15 (f) This section shall not apply to any person whose final 70.16 termination from the last public service under a covered fund is 70.17 prior to May 1, 1975. 70.18 (g) For the purpose of computing annuities under this 70.19 section the formula percentages used by any covered fund, except 70.20 the public employees police and fire fund, the judges retirement 70.21 fund, and the state patrol retirement fund, must not exceed the 70.22 percent specified in section 356.19, subdivision 4, per year of 70.23 service for any year of service or fraction thereof. The 70.24 formula percentage used by the public employees police and fire 70.25 fund and the state patrol retirement fund must not exceed the 70.26 percent specified in section 356.19, subdivision 6, per year of 70.27 service for any year of service or fraction thereof. The 70.28 formula percentage used by the judges retirement fund must not 70.29 exceed the percent specified in section 356.19, subdivision 8, 70.30 per year of service for any year of service or fraction 70.31 thereof. The formula percentage used by the legislators 70.32 retirement plan and the elective state officers retirement must 70.33 not exceed 2.5 percent, but this limit does not apply to the 70.34 adjustment provided under section 3A.02, subdivision 1, 70.35 paragraph (c), or 352C.031, paragraph (b). 70.36 (h) Any period of time for which a person has credit in 71.1 more than one of the covered funds must be used only once for 71.2 the purpose of determining total allowable service. 71.3 (i) If the period of duplicated service credit is more than 71.4 six months, or the person has credit for more than six months 71.5 with each of the funds, each fund shall apply its formula to a 71.6 prorated service credit for the period of duplicated service 71.7 based on a fraction of the salary on which deductions were paid 71.8 to that fund for the period divided by the total salary on which 71.9 deductions were paid to all funds for the period. 71.10 (j) If the period of duplicated service credit is less than 71.11 six months, or when added to other service credit with that fund 71.12 is less than six months, the service credit must be ignored and 71.13 a refund of contributions made to the person in accord with that 71.14 fund's refund provisions. 71.15 Sec. 4. Minnesota Statutes 1998, section 490.121, 71.16 subdivision 4, is amended to read: 71.17 Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" means a 71.18 whole year, or any fraction thereof, subject to the service 71.19 credit limit in subdivision 22, served as a judge at any time, 71.20 or served as a referee in probate for all referees in probate 71.21 who were in office prior to January 1, 1974. 71.22 Sec. 5. Minnesota Statutes 1998, section 490.121, is 71.23 amended by adding a subdivision to read: 71.24 Subd. 22. [SERVICE CREDIT LIMIT.] "Service credit limit" 71.25 means the greater of: (1) 24 years of allowable service under 71.26 chapter 490; or (2) for judges with allowable service rendered 71.27 prior to July 1, 1980, the number of years of allowable service 71.28 under chapter 490, which, when multiplied by the percentage 71.29 listed in section 356.19, subdivision 7 or 8, whichever is 71.30 applicable to each year of service, equals 76.8. 71.31 Sec. 6. Minnesota Statutes 1998, section 490.123, 71.32 subdivision 1a, is amended to read: 71.33 Subd. 1a. [MEMBER CONTRIBUTION RATES.] (a) A judge who is 71.34 covered by the federal old age, survivors, disability, and 71.35 health insurance program whose service does not exceed the 71.36 service credit limit in section 490.121, subdivision 22, shall 72.1 contribute to the fund from each salary payment a sum equal to 72.2 8.00 percent of salary. 72.3 (b) A judge not so covered whose service does not exceed 72.4 the service credit limit in section 490.121, subdivision 22, 72.5 shall contribute to the fund from each salary payment a sum 72.6 equal to 8.15 percent of salary. 72.7 (c) The contribution under this subdivision is payable by 72.8 salary deduction. 72.9 Sec. 7. Minnesota Statutes 1998, section 490.123, 72.10 subdivision 1b, is amended to read: 72.11 Subd. 1b. [EMPLOYER CONTRIBUTION RATE.] The employer 72.12 contribution rate to the fund on behalf of a judge is 20.5 72.13 percent of salary and continues after a judge exceeds the 72.14 service credit limit in section 490.121, subdivision 22. 72.15 The employer contribution must be paid by the state court 72.16 administrator and is payable at the same time as member 72.17 contributions under subdivision 1a, or employee contributions to 72.18 the unclassified plan in chapter 352D for judges whose service 72.19 exceeds the limit in section 490.121, subdivision 22, are 72.20 remitted. 72.21 Sec. 8. Minnesota Statutes 1998, section 490.124, 72.22 subdivision 1, is amended to read: 72.23 Subdivision 1. [BASIC RETIREMENT ANNUITY.] Except as 72.24 qualified hereinafter from and after mandatory retirement date, 72.25 normal retirement date, early retirement date, or one year from 72.26 the disability retirement date, as the case may be, a retirement 72.27 annuity shall be payable to a retiring judge from the judges' 72.28 retirement fund in an amount equal to: (1) the percent 72.29 specified in section 356.19, subdivision 7, multiplied by the 72.30 judge's final average compensation multiplied by the number of 72.31 years and fractions of years of allowable service rendered prior 72.32 to July 1, 1980; plus (2) the percent specified in section 72.33 356.19, subdivision 8, multiplied by the judge's final average 72.34 compensation multiplied by the number of years and fractions of 72.35 years of allowable service rendered after June 30, 1980;72.36provided that the annuity must not exceed 70 percent of the73.1judge's annual salary for the 12 months immediately preceding73.2retirement. Service that exceeds the service credit limit in 73.3 section 490.121, subdivision 22, must be excluded in calculating 73.4 the retirement annuity, but compensation earned during this 73.5 service must be used in determining a judge's final average 73.6 compensation and calculating the retirement annuity. 73.7 Sec. 9. [PRIOR SERVICE.] 73.8 This section applies to a person who is a judge on July 1, 73.9 2000, and whose service under chapter 490 on that date exceeds 73.10 the service credit limit in Minnesota Statutes, section 490.121, 73.11 subdivision 22. A judge to whom this section applies may elect 73.12 to have money transferred from the judges' plan to the judge's 73.13 account in the unclassified employees plan in Minnesota 73.14 Statutes, chapter 352D. The amount to be transferred is eight 73.15 percent of the salary the judge earned after reaching the 73.16 service credit limit defined in Minnesota Statutes, section 73.17 490.121, subdivision 22. A judge electing this transfer 73.18 forfeits all service credit under Minnesota Statutes, chapter 73.19 490, that exceeds the limit in Minnesota Statutes, section 73.20 490.121, subdivision 22. An election under this section must be 73.21 made before retirement as a judge, and within 120 days of the 73.22 effective date of this section. The election must be made on a 73.23 form and in a manner specified by the executive director of the 73.24 Minnesota state retirement system. 73.25 Sec. 10. [EFFECTIVE DATE.] 73.26 Sections 1 to 9 are effective July 1, 2000.