3rd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to the organization and operation of state 1.3 government; appropriating money for the general 1.4 legislative and administrative expenses of state 1.5 government; modifying provisions relating to state 1.6 government operations; modifying information 1.7 technology provisions; providing for community-based 1.8 planning; modifying provisions relating to the 1.9 municipal board; establishing dispute resolution 1.10 procedures; providing criminal penalties; amending 1.11 Minnesota Statutes 1996, sections 1.34, subdivision 2; 1.12 3.056; 3.099, subdivision 3; 3.225, subdivision 1; 1.13 3.85, subdivision 3; 10A.09, subdivision 6; 10A.20, 1.14 subdivision 2; 14.47, subdivision 8; 15.0597, 1.15 subdivisions 5 and 7; 15.0599, subdivision 4; 16A.10, 1.16 subdivision 2; 16A.103, subdivision 1; 16A.11, 1.17 subdivisions 1, 3b, and 3c; 16A.1285, subdivision 3; 1.18 16A.129, subdivision 3; 16A.15, subdivision 3; 1.19 16A.642, subdivision 1, and by adding a subdivision; 1.20 16B.05, subdivision 2; 16B.20, subdivision 2; 16B.24, 1.21 subdivision 5; 16B.35, by adding a subdivision; 1.22 16B.42, subdivision 1; 16B.465; 16B.467; 16B.70, 1.23 subdivision 2; 43A.17, subdivision 4; 43A.38, 1.24 subdivision 4; 115.49, by adding a subdivision; 1.25 116P.05, subdivision 1; 138.31, by adding a 1.26 subdivision; 138.35; 138.91, by adding a subdivision; 1.27 151.21, by adding a subdivision; 176.611, by adding a 1.28 subdivision; 327.33, subdivision 2; 327B.04, 1.29 subdivision 7; 349.163, subdivision 4; 356.865, 1.30 subdivision 3; 363.073, subdivision 1; 394.23; 394.24, 1.31 subdivision 1; 403.02, subdivision 2, and by adding a 1.32 subdivision; 403.08, by adding a subdivision; 403.11, 1.33 subdivision 2; 403.113, subdivisions 1, 2, 3, and 4; 1.34 403.13; 414.0325, subdivision 1; 414.033, subdivisions 1.35 2b, 11, and 12; 422A.101, subdivision 3; 462.352, 1.36 subdivisions 5, 6, and by adding a subdivision; 1.37 462.357, subdivision 2; 473.894, subdivision 3; and 1.38 475A.06, subdivision 7; proposing coding for new law 1.39 in Minnesota Statutes, chapters 4A; 16B; 43A; 62J; 1.40 197; 394; 403; 414; 462; 465; and 473; proposing 1.41 coding for new law as Minnesota Statutes, chapters 16E 1.42 and 572A; repealing Minnesota Statutes 1996, sections 1.43 10A.21; 15.95; 15.96; 16B.40; 16B.41; 16B.43; 16B.58, 1.44 subdivision 8; 138.35, subdivision 3; and 414.033, 1.45 subdivision 2a. 2.1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.2 ARTICLE 1 2.3 APPROPRIATIONS 2.4 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 2.5 The sums shown in the columns marked "APPROPRIATIONS" are 2.6 appropriated from the general fund, or another fund named, to 2.7 the agencies and for the purposes specified in this act, to be 2.8 available for the fiscal years indicated for each purpose. The 2.9 figures "1998" and "1999," where used in this act, mean that the 2.10 appropriation or appropriations listed under them are available 2.11 for the year ending June 30, 1998, or June 30, 1999, 2.12 respectively. 2.13 SUMMARY BY FUND 2.14 BIENNIAL 2.15 1998 1999 TOTAL 2.16 General $338,665,000 $309,544,000 $648,209,000 2.17 State 2.18 Government 2.19 Special Revenue 11,866,000 13,311,000 25,177,000 2.20 Environmental 224,000 229,000 453,000 2.21 Solid Waste Fund 445,000 450,000 895,000 2.22 Lottery Prize 2.23 Fund 1,300,000 1,150,000 2,450,000 2.24 Highway User 2.25 Tax Distribution 2,044,000 2,091,000 4,135,000 2.26 Trunk Highway 37,000 37,000 74,000 2.27 Workers' 2.28 Compensation 4,207,000 4,295,000 8,502,000 2.29 TOTAL $358,788,000 $331,107,000 $689,895,000 2.30 APPROPRIATIONS 2.31 Available for the Year 2.32 Ending June 30 2.33 1998 1999 2.34 Sec. 2. LEGISLATURE 2.35 Subdivision 1. Total 2.36 Appropriation 55,248,000 56,301,000 2.37 Summary by Fund 2.38 General 55,211,000 56,264,000 2.39 Trunk Highway 37,000 37,000 2.40 The amounts that may be spent from this 2.41 appropriation for each program are 3.1 specified in the following subdivisions. 3.2 Subd. 2. Senate 18,974,000 17,743,000 3.3 Subd. 3. House of Representatives 24,116,000 25,801,000 3.4 Subd. 4. Legislative 3.5 Coordinating Commission 12,158,000 12,757,000 3.6 Summary by Fund 3.7 General 12,121,000 12,720,000 3.8 Trunk Highway 37,000 37,000 3.9 $4,754,000 the first year and 3.10 $5,362,000 the second year are for the 3.11 office of the revisor of statutes. 3.12 $1,030,000 the first year and 3.13 $1,052,000 the second year are for the 3.14 legislative reference library. 3.15 $4,615,000 the first year and 3.16 $4,622,000 the second year are for the 3.17 office of the legislative auditor. 3.18 $8,000 the first year and $8,000 the 3.19 second year are to provide additional 3.20 funding for the legislative 3.21 coordinating commission to contract for 3.22 sign language interpreter services for 3.23 meetings in Minnesota with legislators. 3.24 $18,000 the first year is for the 3.25 corporate subsidy reform commission 3.26 created by this act and is available 3.27 until June 30, 1999. 3.28 $65,000 the first year is for expenses 3.29 of the information policy task force 3.30 created by this act and is available 3.31 until June 30, 1999. 3.32 Sec. 3. GOVERNOR AND 3.33 LIEUTENANT GOVERNOR 3,816,000 3,884,000 3.34 This appropriation is to fund the 3.35 offices of the governor and lieutenant 3.36 governor. 3.37 $19,000 the first year and $19,000 the 3.38 second year are for necessary expenses 3.39 in the normal performance of the 3.40 governor's and lieutenant governor's 3.41 duties for which no other reimbursement 3.42 is provided. 3.43 By September 1 of each year, the 3.44 commissioner of finance shall report to 3.45 the chairs of the senate governmental 3.46 operations budget division and the 3.47 house state government finance division 3.48 any personnel costs incurred by the 3.49 office of the governor and lieutenant 3.50 governor that were supported by 3.51 appropriations to other agencies during 3.52 the previous fiscal year. The office 3.53 of the governor shall inform the chairs 3.54 of the divisions before initiating any 3.55 interagency agreements. 4.1 Sec. 4. STATE AUDITOR 7,718,000 7,916,000 4.2 Sec. 5. STATE TREASURER 2,070,000 2,134,000 4.3 $1,000,000 the first year and 4.4 $1,000,000 the second year are for the 4.5 treasurer to pay for banking services 4.6 by fees rather than by compensating 4.7 balances. 4.8 Sec. 6. ATTORNEY GENERAL 27,683,000 26,946,000 4.9 Summary by Fund 4.10 General 25,261,000 24,441,000 4.11 State Government 4.12 Special Revenue 1,849,000 1,924,000 4.13 Environmental 128,000 131,000 4.14 Solid Waste Fund 445,000 450,000 4.15 $25,000 the first year is for the 4.16 attorney general to continue a study of 4.17 gender equity in athletics, to be 4.18 available until June 30, 1999. 4.19 Sec. 7. SECRETARY OF STATE 5,937,000 5,914,000 4.20 $34,000 the first year and $26,000 the 4.21 second year are for administrative 4.22 expenses related to the uniform 4.23 partnership act, 1997 S.F. No. 298, if 4.24 enacted. 4.25 $50,000 the first year is for licensing 4.26 digital signature certification 4.27 authorities under 1997 S.F. No. 173, if 4.28 enacted. 4.29 Sec. 8. BOARD OF PUBLIC DISCLOSURE 593,000 483,000 4.30 The board shall not adopt any new 4.31 administrative rules governing the 4.32 provisions outlined in Minnesota Rules, 4.33 chapter 4503 until after February 1, 4.34 1999. 4.35 Sec. 9. INVESTMENT BOARD 2,163,000 2,247,000 4.36 Sec. 10. ADMINISTRATIVE HEARINGS 4,107,000 4,195,000 4.37 This appropriation is from the workers' 4.38 compensation special compensation fund 4.39 for considering workers' compensation 4.40 claims. 4.41 Sec. 11. OFFICE OF STRATEGIC 4.42 AND LONG-RANGE PLANNING 4,973,000 5,317,000 4.43 $175,000 the first year and $175,000 4.44 the second year are for statewide 4.45 grants to implement teen courts pilot 4.46 projects. Up to five percent of the 4.47 appropriation may be used to administer 4.48 the program. This appropriation shall 4.49 not be included in the agency's base 4.50 for future bienniums. 4.51 $165,000 the first year and $165,000 5.1 the second year are for community-based 5.2 planning and the advisory council on 5.3 community-based planning. 5.4 $375,000 the second year is for 5.5 planning grants to counties, joint 5.6 planning districts that include at 5.7 least one county, or to a county and 5.8 one or more municipalities within the 5.9 county, when they submit a joint 5.10 planning application to prepare 5.11 community-based plans. A county 5.12 receiving a grant may provide funding 5.13 to municipalities within the county for 5.14 purposes of the grant. The office 5.15 shall give priority for grants to joint 5.16 planning districts or joint 5.17 applications from a county and one or 5.18 more municipalities. This 5.19 appropriation is available until June 5.20 30, 2000. 5.21 $375,000 the second year is for 5.22 technology grants to counties, or joint 5.23 planning districts that include at 5.24 least one county, that elect to prepare 5.25 community-based plans. This 5.26 appropriation is available until June 5.27 30, 2000. 5.28 $350,000 the first year is to make a 5.29 grant to a joint powers board, if one 5.30 is established by the counties of 5.31 Benton, Sherburne, and Stearns, and the 5.32 cities of St. Cloud, Waite Park, 5.33 Sartell, St. Joseph, and Sauk Rapids, 5.34 for the purposes of joint planning 5.35 under this act. Other cities and towns 5.36 within the counties may elect to 5.37 participate in the joint planning 5.38 district. The director may make the 5.39 grant once the joint powers board has 5.40 been formed and a copy of the joint 5.41 powers agreement has been received by 5.42 the director. Members of the joint 5.43 powers board may delegate their 5.44 authority to adopt official controls to 5.45 the joint powers board. 5.46 $150,000 the first year is to make 5.47 three grants to additional counties or 5.48 joint powers boards selected to 5.49 participate in the community-based 5.50 planning pilot project. A county that 5.51 receives a grant from this 5.52 appropriation may provide funding to 5.53 municipalities within the county for 5.54 purposes relating to the grant. 5.55 Sec. 12. ADMINISTRATION 5.56 Subdivision 1. Total 5.57 Appropriation 49,349,000 46,486,000 5.58 Summary by Fund 5.59 General 39,732,000 35,499,000 5.60 State Government 5.61 Special Revenue 9,617,000 10,987,000 6.1 The amounts that may be spent from this 6.2 appropriation for each program are 6.3 specified in the following subdivisions. 6.4 Subd. 2. Operations Management 6.5 4,107,000 3,563,000 6.6 $183,000 the first year and $67,000 the 6.7 second year are for prescription drug 6.8 contracting activities. 6.9 During the biennium ending June 30, 6.10 1999, for any executive agency contract 6.11 that is subject to Minnesota Statutes, 6.12 section 363.073, the commissioner shall 6.13 ensure to the extent practical and to 6.14 the extent consistent with the business 6.15 needs of the state, before the agency 6.16 enters into the contract, that the 6.17 company to receive the contract 6.18 attempts to recruit Minnesota welfare 6.19 recipients to fill vacancies in entry 6.20 level positions, if the company has 6.21 entry level employees in Minnesota. 6.22 Up to $500,000 the first year is for 6.23 the commissioner to conduct a study to 6.24 determine if there is sufficient 6.25 justification under a strict scrutiny 6.26 standard to continue or establish a 6.27 narrowly tailored purchasing program 6.28 for the benefit of any socially 6.29 disadvantaged groups. In conducting 6.30 this study, to the extent practical the 6.31 commissioner shall use data gathered 6.32 for similar studies in Hennepin and 6.33 Ramsey counties. The commissioner may 6.34 also study and recommend alternatives 6.35 for race and gender neutral programs to 6.36 stimulate growth opportunities for 6.37 small businesses. The study of these 6.38 alternatives may include, but is not 6.39 limited to, increasing outreach 6.40 efforts, evaluating contract purchasing 6.41 procedures, providing increased 6.42 information and feedback to small 6.43 businesses, eliminating or reducing 6.44 bonding and insurance requirements, and 6.45 mentoring and education. The 6.46 commissioner shall report to the 6.47 governor and the legislature by March 6.48 16, 1998. 6.49 Subd. 3. Facilities Management 6.50 11,734,000 11,202,000 6.51 $2,250,000 the first year and 6.52 $2,250,000 the second year are for 6.53 repair and maintenance of state 6.54 facilities under the custodial control 6.55 of the commissioner of administration. 6.56 When the museum-quality portrait of 6.57 Rudy and Lola Perpich authorized by 6.58 this act is completed, the commissioner 6.59 shall substitute it for the portrait of 6.60 Governor Rudy Perpich that currently is 6.61 displayed on the ground floor of the 6.62 State Capitol. 7.1 $650,000 is for the commissioner of 7.2 administration to acquire the building 7.3 in Ely currently used by the department 7.4 of revenue. The commissioner shall 7.5 cause the building to be appraised by a 7.6 qualified appraiser. The commissioner 7.7 shall submit the report of the 7.8 appraisal to the chairs of the senate 7.9 committees on taxes and state 7.10 government finance and to the chairs of 7.11 the house committees on taxes and ways 7.12 and means for their review and 7.13 comments. The commissioner may not 7.14 acquire the building until 30 days 7.15 after the report of the appraisal was 7.16 received by the chairs or until the 7.17 chairs have all submitted their 7.18 comments to the commissioner, whichever 7.19 occurs first. 7.20 $5,187,000 the first year and 7.21 $5,249,000 the second year are for 7.22 office space costs of the legislature 7.23 and veterans organizations, for 7.24 ceremonial space, and for statutorily 7.25 free space. 7.26 The commissioner of administration 7.27 shall examine the feasibility and 7.28 practicality of relocating the division 7.29 of emergency services to larger 7.30 quarters outside the capitol. 7.31 Subd. 4. Fiscal Agent 7.32 1,060,000 160,000 7.33 (a) Children's Museum 7.34 160,000 160,000 7.35 This appropriation is for a grant to 7.36 the Minnesota Children's Museum. 7.37 (b) Voyageur Center 7.38 $250,000 the first year is for a grant 7.39 to the city of International Falls for 7.40 the predesign and design of an 7.41 interpretive library and conference 7.42 center. The center shall provide 7.43 educational opportunities and enhance 7.44 tourism by presenting information and 7.45 displays that preserve and interpret 7.46 the history of the voyageurs and 7.47 animals involved with the voyageurs, 7.48 emphasizing the importance of the fur 7.49 trade to the history and development of 7.50 the region and the state. The center 7.51 shall include conference facilities. 7.52 The center shall be located in the city 7.53 of International Falls. The city may 7.54 enter into a lease or management 7.55 contract with a nonprofit entity for 7.56 operation of the center. In developing 7.57 plans for the facility, the 7.58 commissioner must consult with the 7.59 small business development center 7.60 located at Rainy River Community 7.61 College. 8.1 (c) Hockey Hall of Fame 8.2 $200,000 the first year is for a grant 8.3 to the hockey hall of fame in Eveleth 8.4 for capital improvements and building 8.5 and grounds maintenance. Any money not 8.6 spent the first year is available the 8.7 second year. 8.8 (d) American Bald Eagle Center 8.9 $450,000 the first year is for a grant 8.10 to the city of Wabasha to acquire and 8.11 prepare a site for and to predesign and 8.12 design the American Bald Eagle Center, 8.13 to be available until June 30, 1999. 8.14 Subd. 5. Administrative Management 8.15 2,633,000 2,659,000 8.16 $2,000 the first year and $2,000 the 8.17 second year are for the state 8.18 employees' band. 8.19 $175,000 the first year and $175,000 8.20 the second year are for the STAR 8.21 program. 8.22 $187,000 the first year and $190,000 8.23 the second year are for the office of 8.24 the state archaeologist. 8.25 $30,000 the first year is for the 8.26 office of the state archaeologist to 8.27 identify Indian burial mounds 8.28 throughout the state and to provide 8.29 information about these burial mounds 8.30 to units of local government. 8.31 Subd. 6. Management Analysis 8.32 584,000 658,000 8.33 Subd. 7. Technology Management 8.34 24,401,000 24,028,000 8.35 Summary by Fund 8.36 General 14,784,000 13,041,000 8.37 State Government 8.38 Special Revenue 9,617,000 10,987,000 8.39 The appropriation from the special 8.40 revenue fund is for recurring costs of 8.41 911 emergency telephone service. 8.42 $724,000 the first year and $936,000 8.43 the second year are for the network 8.44 telecommunications initiative. It is 8.45 intended that portions of this 8.46 appropriation be transferred to other 8.47 agencies to fund project costs. The 8.48 commissioner is authorized to make the 8.49 transfers with the advance approval of 8.50 the commissioner of finance. 8.51 $12,500,000 the first year and 8.52 $10,500,000 the second year are for 9.1 modification of state business systems 9.2 to address year 2000 changes. 9.3 $8,000,000 the first year is placed in 9.4 a contingent account and is available 9.5 only upon approval of the governor, 9.6 after consultation with the legislative 9.7 advisory commission. The commissioner 9.8 shall report to the legislature by 9.9 December 15, 1997, on progress of the 9.10 project. This appropriation is not 9.11 available until the commissioner has 9.12 determined that all other money 9.13 allocated for replacement or 9.14 enhancement of existing technology for 9.15 year 2000 compliance will be expended. 9.16 Each request for additional funding 9.17 must include the following 9.18 information: (1) a complete 9.19 description of the impact if the 9.20 information system is not upgraded for 9.21 year 2000 compliance; (2) a description 9.22 of other means of addressing the 9.23 problem if additional funding is not 9.24 provided; and (3) a description of 9.25 problems that may impact other systems 9.26 if the funding is not provided. 9.27 $280,000 the first year and $281,000 9.28 the second year are for the 9.29 intergovernmental information systems 9.30 advisory council. 9.31 Funds that were made available to 9.32 develop the local government financial 9.33 reporting system in Laws 1994, chapter 9.34 587, article 3, section 3, clause (5), 9.35 shall also be used to implement and 9.36 operate the system. 9.37 The intergovernmental information 9.38 systems advisory council shall create a 9.39 committee to provide direction for the 9.40 ongoing operation and maintenance of 9.41 the local government financial 9.42 reporting system similar to the 9.43 recommendation made in the initial 9.44 report to the legislative commission on 9.45 planning and fiscal policy. Members 9.46 shall include one member each from the 9.47 legislature, office of the state 9.48 auditor, department of revenue, 9.49 department of finance, counties, 9.50 cities, townships, special districts, 9.51 and a member from the general financial 9.52 community. 9.53 Subd. 8. Public Broadcasting 9.54 4,830,000 4,216,000 9.55 $1,700,000 the first year and 9.56 $1,700,000 the second year are for 9.57 matching grants for public television. 9.58 $250,000 the first year and $250,000 9.59 the second year are a one-biennium 9.60 appropriation and must not be included 9.61 in the budget base for the next 9.62 biennium. Public television grant 9.63 recipients shall give special emphasis 9.64 to children's programming. In 9.65 addition, public television grant 10.1 recipients shall promote program and 10.2 outreach initiatives that will increase 10.3 literacy and attempt to reduce youth 10.4 violence in our communities. 10.5 $700,000 the first year and $700,000 10.6 the second year are for public 10.7 television equipment needs. $100,000 10.8 the first year and $100,000 the second 10.9 year are a one-biennium appropriation 10.10 and must not be included in the budget 10.11 base for the next biennium. Equipment 10.12 grant allocations shall be made after 10.13 considering the recommendations of the 10.14 Minnesota public television association. 10.15 $750,000 the first year is for a 10.16 one-time grant to Twin Cities public 10.17 television to construct a digital 10.18 broadcast transmission facility and 10.19 develop high-definition digital 10.20 television capability. Twin Cities 10.21 public television will work with the 10.22 University of Minnesota and other 10.23 higher education institutions to 10.24 explore and demonstrate educational 10.25 uses of the broadcast services funded 10.26 by this appropriation. This 10.27 appropriation must be matched equally 10.28 from nonstate sources. 10.29 $305,000 the first year and $441,000 10.30 the second year are for grants for 10.31 public information television 10.32 transmission of legislative 10.33 activities. At least one-half must go 10.34 for programming to be broadcast in 10.35 rural Minnesota. 10.36 $25,000 the first year and $25,000 the 10.37 second year are for grants to the Twin 10.38 Cities regional cable channel. 10.39 $400,000 the first year and $400,000 10.40 the second year are for community 10.41 service grants to public educational 10.42 radio stations, which must be allocated 10.43 after considering the recommendations 10.44 of the Association of Minnesota Public 10.45 Educational Radio Stations under 10.46 Minnesota Statutes, section 129D.14. 10.47 $80,000 the first year and $80,000 the 10.48 second year are a one-biennium 10.49 appropriation and must not be included 10.50 in the budget base for the next 10.51 biennium. 10.52 $925,000 the first year and $925,000 10.53 the second year are for equipment 10.54 grants to public radio stations. 10.55 $431,000 the first year and $431,000 10.56 the second year are a one-biennium 10.57 appropriation and must not be included 10.58 in the budget base for the next 10.59 biennium. These grants must be 10.60 allocated after considering the 10.61 recommendations of the Association of 10.62 Minnesota Public Educational Radio 10.63 Stations and Minnesota Public Radio, 10.64 Inc. 11.1 If an appropriation for either year for 11.2 grants to public television or radio 11.3 stations is not sufficient, the 11.4 appropriation for the other year is 11.5 available for it. 11.6 $25,000 the first year and $25,000 the 11.7 second year are for a grant to the 11.8 association of Minnesota public 11.9 education radio stations for station 11.10 KMOJ. This money may be used for 11.11 equipment. This appropriation is 11.12 separate from and in addition to money 11.13 appropriated for stations affiliated 11.14 with Minnesota Public Radio and the 11.15 Association of Minnesota Public Radio 11.16 Stations. 11.17 Before receiving funding under this 11.18 section, each public radio or public 11.19 television station or network that is 11.20 to receive funding must agree to submit 11.21 a report to the commissioner. The 11.22 report must list all sources of revenue 11.23 for the station or network and any 11.24 for-profit subsidiaries. This must 11.25 include all federal, state, or local 11.26 funds received; private and corporate 11.27 gifts, grants, and other donations, 11.28 including conditions placed on the use 11.29 of these; investment earnings; and a 11.30 programming list. This report must be 11.31 submitted annually beginning in 1998. 11.32 Each report must cover the previous 11.33 year. This paragraph does not apply to 11.34 grants for public information 11.35 television transmission of legislative 11.36 activities. 11.37 Sec. 13. OFFICE OF TECHNOLOGY 5,161,000 2,777,000 11.38 $2,326,000 the first year and 11.39 $2,377,000 the second year are for the 11.40 administrative operations of the office 11.41 of technology. 11.42 $935,000 the first year is for the 11.43 North Star online information service 11.44 under new Minnesota Statutes, section 11.45 16E.07. Any unencumbered balance 11.46 remaining in the first year does not 11.47 cancel and is available for the second 11.48 year of the biennium. 11.49 $500,000 the first year is to develop 11.50 an electronic system to allow the 11.51 public to retrieve by computer business 11.52 license information prepared by the 11.53 commissioner of economic development, 11.54 as required by new Minnesota Statutes, 11.55 section 16E.08. Any unencumbered 11.56 balance remaining in the first year 11.57 does not cancel and is available for 11.58 the second year of the biennium. The 11.59 executive director shall report to the 11.60 legislature by January 15, 1998, on 11.61 progress of the project. 11.62 $400,000 the first year and $400,000 11.63 the second year are to develop a United 11.64 Nations trade point in the state under 12.1 new Minnesota Statutes, section 12.2 16E.11. If the appropriation for 12.3 either year is insufficient, the 12.4 appropriation for the other year is 12.5 available for it. 12.6 $500,000 the first year is to support 12.7 activities associated with a 12.8 plenipotentiary conference of the 12.9 International Telecommunications Union. 12.10 $500,000 the first year is to operate 12.11 the Internet Center under new Minnesota 12.12 Statutes, section 16E.12, and to 12.13 develop community technology resources 12.14 under new Minnesota Statutes, section 12.15 16E.13. Any unencumbered balance 12.16 remaining in the first year does not 12.17 cancel and is available for the second 12.18 year of the biennium. 12.19 Sec. 14. CAPITOL AREA ARCHITECTURAL 12.20 AND PLANNING BOARD 761,000 289,000 12.21 $455,000 the first year is for two 12.22 governors' portraits, predesign of a 12.23 memorial to Coya Knutson, design and 12.24 construction of a memorial to Hubert H. 12.25 Humphrey, and completion of the 12.26 Minnesota women's suffrage memorial 12.27 garden and is available until 12.28 expended. The portrait of Rudy and 12.29 Lola Perpich must be a museum-quality 12.30 oil painting based on the portrait of 12.31 Rudy and Lola Perpich currently on 12.32 display at the Minnesota Historical 12.33 Society. 12.34 The capitol area architectural and 12.35 planning board shall develop standards 12.36 for the content, construction, and 12.37 materials used for the official 12.38 portrait of a governor that is to be 12.39 hung in the state capitol. The board 12.40 shall give particular attention to the 12.41 question of whether the governor's 12.42 spouse should be included in the 12.43 official portrait of a future governor 12.44 and the length of time the portrait 12.45 should be expected to last without 12.46 significant deterioration. The board 12.47 shall report its recommendations to the 12.48 legislature by January 15, 1998. 12.49 Notwithstanding Laws 1993, chapter 192, 12.50 section 16, the appropriation in that 12.51 section for the Hubert H. Humphrey 12.52 memorial need not be matched. 12.53 The appropriation in Laws 1996, chapter 12.54 390, section 5, for revision of the 12.55 board's comprehensive plan and zoning 12.56 ordinance is available until June 30, 12.57 1998. 12.58 Sec. 15. FINANCE 12.59 Subdivision 1. Total 12.60 Appropriation 22,520,000 22,751,000 12.61 The amounts that may be spent from this 13.1 appropriation for each program are 13.2 specified in the following subdivisions. 13.3 Subd. 2. Accounting Services 13.4 4,696,000 4,795,000 13.5 Subd. 3. Accounts Receivable 13.6 Operations 13.7 1,476,000 1,513,000 13.8 $595,000 the first year and $610,000 13.9 the second year are for transfer to the 13.10 department of revenue. 13.11 $266,000 the first year and $273,000 13.12 the second year are for transfer to the 13.13 department of human services. 13.14 $562,000 the first year and $576,000 13.15 the second year are for transfer to the 13.16 attorney general. 13.17 Subd. 4. Budget Services 13.18 2,129,000 2,189,000 13.19 The commissioner of finance shall 13.20 convene a joint executive-legislative 13.21 work group to evaluate the current 13.22 usefulness and benefits of agency 13.23 performance reports prepared in 13.24 accordance with the requirements of 13.25 Minnesota Statutes, sections 15.90 to 13.26 15.92. The work group shall include 13.27 representatives of reporting agencies, 13.28 the office of the legislative auditor, 13.29 the legislative committees to which 13.30 agency performance reports are 13.31 presented, and other parties as deemed 13.32 appropriate by the commissioner. By 13.33 November 3, 1997, the commissioner 13.34 shall report the progress of the work 13.35 group to the legislative commission on 13.36 planning and fiscal policy and other 13.37 committees as appropriate. The report 13.38 of the commissioner shall contain 13.39 recommendations on proposed 13.40 administrative and legislative actions 13.41 to increase the relevance, overall 13.42 usefulness, and benefits of state 13.43 performance reporting efforts, and 13.44 increase the efficiency of the report 13.45 development process. By February 2, 13.46 1998, the commissioner shall report to 13.47 the legislative commission on planning 13.48 and fiscal policy and other committees 13.49 as appropriate on performance measures 13.50 proposed for reporting on specific 13.51 agencies, and request the concurrence 13.52 of the legislature on the proposed 13.53 measures. 13.54 The term "annualization of new 13.55 programs" as used in the detailed 13.56 budget estimates shall be changed to 13.57 "new programs to agency base." 13.58 Subd. 5. Economic Analysis 14.1 313,000 319,000 14.2 Subd. 6. Information Services 14.3 12,304,000 12,304,000 14.4 Subd. 7. Management Services 14.5 1,602,000 1,631,000 14.6 Sec. 16. EMPLOYEE RELATIONS 14.7 Subdivision 1. Total 14.8 Appropriation 8,505,000 7,228,000 14.9 The amounts that may be spent from this 14.10 appropriation for each program are 14.11 specified in the following subdivisions. 14.12 Subd. 2. Human Resources 14.13 Management 14.14 7,051,000 7,124,000 14.15 $325,000 the first year and $250,000 14.16 the second year are for continuation of 14.17 reforms to the state's human resource 14.18 management processes and policies, 14.19 including, but not limited to, 14.20 enhancing redeployment procedures, 14.21 application and testing services, 14.22 hiring, the position classification 14.23 system, and employee development 14.24 processes. 14.25 $50,000 the first year and $50,000 the 14.26 second year are for a grant to the 14.27 government training service. 14.28 $75,000 the first year and $75,000 the 14.29 second year are for the Minnesota 14.30 quality college under Minnesota 14.31 Statutes, section 43A.211. 14.32 $22,000 the first year and $22,000 the 14.33 second year are to fund a position to 14.34 administer the state's annual combined 14.35 charities program. 14.36 During the biennium ending June 30, 14.37 1999, the commissioner shall attempt to 14.38 recruit Minnesota welfare recipients to 14.39 fill at least ten percent of vacancies 14.40 in entry level state positions. 14.41 Subd. 3. Employee Insurance 14.42 1,454,000 104,000 14.43 $104,000 the first year and $104,000 14.44 the second year are for the 14.45 right-to-know contracts administered 14.46 through the employee insurance division. 14.47 $1,000,000 the first year is a one-time 14.48 appropriation to establish a state 14.49 workers' compensation settlement and 14.50 contingency reserve. This 14.51 appropriation must be transferred to a 14.52 separate account within the 14.53 miscellaneous special revenue fund, 15.1 from which payments may be made and 15.2 premiums assessed to replenish the 15.3 reserve account under new Minnesota 15.4 Statutes, section 176.611, subdivision 15.5 2a. 15.6 During the biennium ending June 30, 15.7 1999, the amount necessary to pay 15.8 premiums for coverage by the worker's 15.9 compensation reinsurance association 15.10 under Minnesota Statutes, section 15.11 79.34, is appropriated from the general 15.12 fund to the commissioner. 15.13 Sec. 17. REVENUE 15.14 Subdivision 1. Total 15.15 Appropriation 80,342,000 82,574,000 15.16 Summary by Fund 15.17 General 78,202,000 80,385,000 15.18 Highway User 15.19 Tax Distribution 2,044,000 2,091,000 15.20 Environmental 96,000 98,000 15.21 The amounts that may be spent from this 15.22 appropriation for each program are 15.23 specified in the following subdivisions. 15.24 Subd. 2. Income Tax 15.25 14,297,000 14,549,000 15.26 Subd. 3. Business Excise and Consumption 15.27 13,657,000 13,972,000 15.28 Summary by Fund 15.29 General 11,517,000 11,783,000 15.30 Highway User 15.31 Tax Distribution 2,044,000 2,091,000 15.32 Environmental 96,000 98,000 15.33 $150,000 each year from the highway use 15.34 tax distribution fund is for funding of 15.35 the dyed fuel program. This 15.36 appropriation is reduced by the amount 15.37 of any federal grants available for use 15.38 during the biennium for dyed fuel 15.39 enforcement purposes. 15.40 Subd. 4. Property Tax and State Aids 15.41 2,869,000 3,026,000 15.42 Subd. 5. Tax Operations 15.43 27,679,000 28,207,000 15.44 Subd. 6. Legal and Research 15.45 3,830,000 3,832,000 15.46 $80,000 the first year is to complete 15.47 the Minnesota/Wisconsin tax reciprocity 16.1 study. 16.2 Subd. 7. Administrative Support 16.3 15,887,000 16,827,000 16.4 Subd. 8. Accounts Receivable 16.5 2,123,000 2,161,000 16.6 During the biennium ending June 30, 16.7 1999, when a debt owed to any entity of 16.8 state government for which the 16.9 Minnesota collection enterprise has 16.10 jurisdiction becomes 121 days past due, 16.11 the state entity must refer the account 16.12 to the commissioner of revenue for 16.13 assignment to the Minnesota collection 16.14 enterprise. This requirement does not 16.15 apply if there is a dispute over the 16.16 amount or validity of the debt, if the 16.17 debt is the subject of legal action or 16.18 administrative proceedings, or the 16.19 agency determines that the debtor is 16.20 adhering to acceptable payment 16.21 arrangements. The commissioner of 16.22 revenue, in consultation with the 16.23 commissioner of finance, may provide 16.24 that certain types of debt need not be 16.25 referred to the commissioner for 16.26 assignment to the collection enterprise 16.27 under this paragraph. Methods and 16.28 procedures for referral shall follow 16.29 internal guidelines prepared by the 16.30 commissioner of finance. 16.31 Sec. 18. MILITARY AFFAIRS 16.32 Subdivision 1. Total 16.33 Appropriation 10,416,000 10,527,000 16.34 The amounts that may be spent from this 16.35 appropriation for each program are 16.36 specified in the following subdivisions. 16.37 Subd. 2. Maintenance of Training 16.38 Facilities 16.39 6,056,000 6,129,000 16.40 Subd. 3. General Support 16.41 2,008,000 2,045,000 16.42 $75,000 the first year and $75,000 the 16.43 second year are for expenses of 16.44 military forces ordered to active duty 16.45 under Minnesota Statutes, chapter 192. 16.46 If the appropriation for either year is 16.47 insufficient, the appropriation for the 16.48 other year is available for it. 16.49 $400,000 the first year and $400,000 16.50 the second year are for a pilot project 16.51 to make armories available for 16.52 recreational activities for youth. 16.53 This amount shall not be included in 16.54 the agency's base for future 16.55 bienniums. Scheduling of these 16.56 activities is subject to approval of 16.57 the adjutant general. The project must 17.1 include, but is not limited to, 17.2 armories in Minneapolis and St. Paul. 17.3 The adjutant general shall report to 17.4 the chair of the state government 17.5 finance division in the house and the 17.6 chair of the governmental operations 17.7 budget division in the senate on the 17.8 results of the pilot project, including 17.9 the number of youth served, programs 17.10 provided, benefits of the programs to 17.11 communities served, and cost of 17.12 administering the project. 17.13 Subd. 4. Enlistment Incentives 17.14 2,352,000 2,353,000 17.15 Obligations for the reenlistment bonus 17.16 program, suspended on December 31, 17.17 1991, shall be paid from the amounts 17.18 available within the enlistment 17.19 incentives program. 17.20 If appropriations for either year of 17.21 the biennium are insufficient, the 17.22 appropriation from the other year is 17.23 available. The appropriations for 17.24 enlistment incentives are available 17.25 until expended. 17.26 Sec. 19. VETERANS AFFAIRS 21,594,000 4,324,000 17.27 $231,000 the first year and $232,000 17.28 the second year are for grants to 17.29 county veterans offices for training of 17.30 county veterans service officers. 17.31 $1,544,000 the first year and 17.32 $1,544,000 the second year are for 17.33 emergency financial and medical needs 17.34 of veterans. If the appropriation for 17.35 either year is insufficient, the 17.36 appropriation for the other year is 17.37 available for it. 17.38 With the approval of the commissioner 17.39 of finance, the commissioner of 17.40 veterans affairs may transfer the 17.41 unencumbered balance from the veterans 17.42 relief program to other department 17.43 programs during the fiscal year. 17.44 Before the transfer, the commissioner 17.45 of veterans affairs shall explain why 17.46 the unencumbered balance exists. The 17.47 amounts transferred must be identified 17.48 to the chairs of the senate 17.49 governmental operations budget 17.50 committee and the house governmental 17.51 operations committee division on state 17.52 government finance. 17.53 $250,000 the first year and $250,000 17.54 the second year are for a grant to the 17.55 Vinland National Center. 17.56 $110,000 is for a matching grant for a 17.57 memorial to be constructed in the city 17.58 of Park Rapids to honor veterans from 17.59 all wars involving armed forces of the 17.60 United States. In-kind donations may 17.61 be used for the nonstate match. The 18.1 appropriation does not expire and is 18.2 available until expended. $10,000 of 18.3 this amount is for administrative costs. 18.4 $110,000 the first year is to make a 18.5 grant to the Red Tail Project of the 18.6 Southern Minnesota Wing of the 18.7 Confederate Air Force and Tuskeegee 18.8 Airmen, Inc., to restore a P-51C 18.9 Mustang World War II fighter plane to 18.10 honor the airmen known as the 18.11 "Tuskeegee Airmen." The appropriation 18.12 must be matched by nonstate 18.13 contributions to the project. $10,000 18.14 of this amount is for administrative 18.15 costs. 18.16 $17,090,000 the first year is to make 18.17 bonus payments authorized under 18.18 Minnesota Statutes, section 197.79. 18.19 The appropriation may not be used for 18.20 administrative purposes. The 18.21 appropriation does not expire until the 18.22 commissioner acts on all applications 18.23 submitted under Minnesota Statutes, 18.24 section 197.79. 18.25 $250,000 the first year and $250,000 18.26 the second year are to administer the 18.27 bonus program established under 18.28 Minnesota Statutes, section 197.79. 18.29 The appropriation does not expire until 18.30 the commissioner acts on all the 18.31 applications submitted under Minnesota 18.32 Statutes, section 197.79. 18.33 Sec. 20. VETERANS OF FOREIGN 18.34 WARS 41,000 41,000 18.35 For carrying out the provisions of Laws 18.36 1945, chapter 455. 18.37 Sec. 21. MILITARY ORDER OF 18.38 THE PURPLE HEART 20,000 20,000 18.39 Sec. 22. DISABLED AMERICAN VETERANS 13,000 13,000 18.40 For carrying out the provisions of Laws 18.41 1941, chapter 425. 18.42 Sec. 23. GAMBLING CONTROL 2,277,000 2,177,000 18.43 The commissioner of revenue must 18.44 continue to provide technical support 18.45 to the lawful gambling control board 18.46 for the collection of gambling taxes 18.47 without charge during the biennium 18.48 ending June 30, 1999. 18.49 Sec. 24. RACING COMMISSION 371,000 379,000 18.50 Sec. 25. STATE LOTTERY 1,300,000 1,150,000 18.51 This appropriation is from the state 18.52 lottery prize fund to the commissioner 18.53 of human services for outpatient and 18.54 inpatient compulsive gambling treatment 18.55 programs, compulsive gambling hotline 18.56 services, felony screening, compulsive 18.57 gambling youth education, and any other 18.58 compulsive gambling treatment programs 19.1 under Minnesota Statutes, section 19.2 245.98. 19.3 $150,000 the first year is for the 19.4 inpatient treatment program at Project 19.5 Turnabout in Granite Falls. 19.6 Fifty percent of any money received by 19.7 the Gamblers' Intervention Center of 19.8 Duluth under any appropriation enacted 19.9 during the 1997 regular legislative 19.10 session must go to the Arrowhead 19.11 Center, Inc. in Virginia. 19.12 The total amount of money spent from 19.13 all appropriations enacted during the 19.14 1997 regular legislative session for 19.15 hotline services, felony screening, and 19.16 compulsive gambling youth education 19.17 must not exceed the total amount spent 19.18 for these purposes during the biennium 19.19 ending June 30, 1997. 19.20 The director of the state lottery shall 19.21 reimburse the general fund $150,000 the 19.22 first year and $150,000 the second year 19.23 for lottery-related costs incurred by 19.24 the department of public safety. 19.25 Sec. 26. AMATEUR SPORTS 19.26 COMMISSION 6,145,000 999,000 19.27 $5,000,000 the first year is for grants 19.28 for ice centers under Minnesota 19.29 Statutes, section 240A.09, of up to 19.30 $250,000 each. Up to $1,000,000 of 19.31 this amount may be used for renovation 19.32 grants for existing ice arenas of up to 19.33 $100,000 each. Any unencumbered 19.34 balance remaining in the first year 19.35 does not cancel and is available for 19.36 the second year of the biennium. 19.37 The amateur sports commission shall 19.38 report to the legislature by January 19.39 15, 1998, on progress toward the 19.40 construction and renovation of ice 19.41 arenas, their success, financing, and 19.42 operation, and any need for additional 19.43 state-assisted efforts. 19.44 $400,000 the first year and $400,000 19.45 the second year are for pilot projects 19.46 for youth sports as provided in this 19.47 act. This amount must not be included 19.48 in the agency's base for future 19.49 bienniums. The executive director 19.50 shall report by January 15, 1999, to 19.51 the chairs of the state government 19.52 finance division in the house and the 19.53 governmental operations budget division 19.54 in the senate on the results of the 19.55 pilot project, including the number of 19.56 youth served, programs provided, 19.57 benefits of the programs to communities 19.58 served, and the cost of administering 19.59 the project. 19.60 $50,000 the first year is for a grant 19.61 to the United States Olympic 19.62 Committee's Minnesota Olympic 20.1 development program to fund the 20.2 development of winter sports programs 20.3 for females from ages 13 to 18. The 20.4 money is available only upon 20.5 demonstration of a dollar for dollar 20.6 match from nonstate sources. 20.7 $75,000 the first year is to study the 20.8 feasibility of constructing an indoor 20.9 amateur tennis facility in the city of 20.10 St. Paul. 20.11 Sec. 27. BOARD OF THE ARTS 20.12 Subdivision 1. Total Appropriation 13,018,000 13,036,000 20.13 Any unencumbered balance remaining in 20.14 this section the first year does not 20.15 cancel but is available for the second 20.16 year of the biennium. 20.17 Subd. 2. Operations and Services 988,000 961,000 20.18 Subd. 3. Grants Program 8,518,000 8,540,000 20.19 The board shall spend this 20.20 appropriation to ensure that at least 20.21 ten percent of the expenditure is for 20.22 arts programs intended primarily for 20.23 children. 20.24 $50,000 the first year and $50,000 the 20.25 second year are for grants to 20.26 individual artists of color to create 20.27 new works in collaboration with 20.28 nonprofit arts and community 20.29 organizations. Special emphasis must 20.30 be made to reach artists of color who 20.31 are recent immigrants. 20.32 Subd. 4. Regional Arts 20.33 Councils 3,512,000 3,535,000 20.34 The board shall distribute this 20.35 appropriation to the regional arts 20.36 councils to ensure that ten percent of 20.37 the total distribution in each region 20.38 is for arts programs intended primarily 20.39 for children. 20.40 Sec. 28. MINNESOTA HUMANITIES 20.41 COMMISSION 886,000 886,000 20.42 Any unencumbered balance remaining in 20.43 the first year does not cancel but is 20.44 available for the second year of the 20.45 biennium. 20.46 Sec. 29. GENERAL CONTINGENT 20.47 ACCOUNTS 600,000 600,000 20.48 Summary by Fund 20.49 General 100,000 100,000 20.50 State Government 20.51 Special Revenue 400,000 400,000 20.52 Workers' Compensation 100,000 100,000 20.53 The appropriations in this section must 21.1 be spent with the approval of the 21.2 governor after consultation with the 21.3 legislative advisory commission under 21.4 Minnesota Statutes, section 3.30. 21.5 If an appropriation in this section for 21.6 either year is insufficient, the 21.7 appropriation for the other year is 21.8 available for it. 21.9 The special revenue appropriation is 21.10 available to be transferred to the 21.11 attorney general when the costs to 21.12 provide legal services to the health 21.13 boards exceed the biennial 21.14 appropriation to the attorney general 21.15 from the special revenue fund and for 21.16 transfer to the health boards if 21.17 required for unforeseen expenditures of 21.18 an emergency nature. The boards 21.19 receiving the additional services or 21.20 supplemental appropriations shall set 21.21 their fees to cover the costs. 21.22 Sec. 30. TORT CLAIMS 275,000 275,000 21.23 To be spent by the commissioner of 21.24 finance. 21.25 If the appropriation for either year is 21.26 insufficient, the appropriation for the 21.27 other year is available for it. 21.28 Sec. 31. MINNESOTA STATE 21.29 RETIREMENT SYSTEM 2,266,000 2,379,000 21.30 The amounts estimated to be needed for 21.31 each program are as follows: 21.32 (a) Legislators 21.33 2,093,000 2,197,000 21.34 Under Minnesota Statutes, sections 21.35 3A.03, subdivision 2; 3A.04, 21.36 subdivisions 3 and 4; and 3A.11. 21.37 (b) Constitutional Officers 21.38 173,000 182,000 21.39 Under Minnesota Statutes, sections 21.40 352C.031, subdivision 5; 352C.04, 21.41 subdivision 3; and 352C.09, subdivision 21.42 2. 21.43 If an appropriation in this section for 21.44 either year is insufficient, the 21.45 appropriation for the other year is 21.46 available for it. 21.47 Sec. 32. MINNEAPOLIS EMPLOYEES 21.48 RETIREMENT FUND 11,005,000 9,550,000 21.49 $10,455,000 the first year and 21.50 $9,000,000 the second year are to the 21.51 commissioner of finance for payment to 21.52 the Minneapolis employees retirement 21.53 fund under Minnesota Statutes, section 21.54 422A.101, subdivision 3. Payment must 21.55 be made in four equal installments, 22.1 March 15, July 15, September 15, and 22.2 November 15, each year. 22.3 $550,000 the first year and $550,000 22.4 the second year are to the commissioner 22.5 of finance for payment to the 22.6 Minneapolis employees retirement fund 22.7 for the supplemental benefit for 22.8 pre-1973 retirees under Minnesota 22.9 Statutes, section 356.865. 22.10 Sec. 33. POLICE AND FIRE 22.11 AMORTIZATION AID 6,303,000 6,300,000 22.12 $4,925,000 the first year and 22.13 $4,925,000 the second year are to the 22.14 commissioner of revenue for state aid 22.15 to amortize the unfunded liability of 22.16 local police and salaried firefighters' 22.17 relief associations, under Minnesota 22.18 Statutes, section 423A.02. 22.19 $1,000,000 the first year and 22.20 $1,000,000 the second year are to the 22.21 commissioner of revenue for 22.22 supplemental state aid to amortize the 22.23 unfunded liability of local police and 22.24 salaried firefighters' relief 22.25 associations under Minnesota Statutes, 22.26 section 423A.02, subdivision 1a. 22.27 $378,000 the first year and $375,000 22.28 the second year are to the commissioner 22.29 of revenue to pay reimbursements to 22.30 relief associations for firefighter 22.31 supplemental benefits paid under 22.32 Minnesota Statutes, section 424A.10. 22.33 Sec. 34. BOARD OF GOVERNMENT 22.34 INNOVATION AND COOPERATION 1,312,000 1,009,000 22.35 $306,000 the first year is to fund a 22.36 portion of the cooperation and 22.37 combination aid awards that were 22.38 approved by the board in fiscal years 22.39 1996 and 1997. 22.40 Sec. 35. BOND SALE SCHEDULE 22.41 The commissioner of finance shall 22.42 schedule the sale of state general 22.43 obligation bonds so that, during the 22.44 biennium ending June 30, 1999, no more 22.45 than $545,457,000 will need to be 22.46 transferred from the general fund to 22.47 the state bond fund to pay principal 22.48 and interest due and to become due on 22.49 outstanding state general obligation 22.50 bonds. During the biennium, before 22.51 each sale of state general obligation 22.52 bonds, the commissioner of finance 22.53 shall calculate the amount of debt 22.54 service payments needed on bonds 22.55 previously issued and shall estimate 22.56 the amount of debt service payments 22.57 that will be needed on the bonds 22.58 scheduled to be sold, the commissioner 22.59 shall adjust the amount of bonds 22.60 scheduled to be sold so as to remain 22.61 within the limit set by this section. 22.62 The amount needed to make the debt 23.1 service payments is appropriated from 23.2 the general fund as provided in 23.3 Minnesota Statutes, section 16A.641. 23.4 Sec. 36. [STATEWIDE SYSTEMS ACCOUNT.] 23.5 Subdivision 1. [CONTINUATION.] The statewide systems 23.6 account is a separate account in the general fund. All money 23.7 resulting from billings for statewide systems services must be 23.8 deposited in the account. For the purposes of this section, 23.9 statewide systems includes the state accounting system, payroll 23.10 system, human resources system, procurement system, and related 23.11 information access systems. 23.12 Subd. 2. [BILLING PROCEDURES.] The commissioner of finance 23.13 may bill up to $3,111,000 in fiscal year 1998 and $3,659,000 in 23.14 fiscal year 1999 for statewide systems services provided to 23.15 state agencies, judicial branch agencies, the University of 23.16 Minnesota, the Minnesota state colleges and universities, and 23.17 other entities. Billing must be based only on usage of services 23.18 relating to statewide systems provided by the intertechnologies 23.19 division. Each agency shall transfer from agency operating 23.20 appropriations to the statewide systems account the amount 23.21 billed by the commissioner. Billing policies and procedures 23.22 related to statewide systems services must be developed by the 23.23 commissioner of finance in consultation with the commissioners 23.24 of employee relations and administration, the University of 23.25 Minnesota, and the Minnesota state colleges and universities. 23.26 Subd. 3. [APPROPRIATION.] Money transferred into the 23.27 account is appropriated to the commissioner of finance to pay 23.28 for statewide systems services during fiscal years 1998 and 1999. 23.29 ARTICLE 2 23.30 STATE GOVERNMENT OPERATIONS 23.31 Section 1. Minnesota Statutes 1996, section 1.34, 23.32 subdivision 2, is amended to read: 23.33 Subd. 2. [OFFICERS.] The members of the legislative 23.34 advisory committee shall select a chair and other officers as 23.35 deemed necessary. The chair of the commission shall rotate 23.36 every two years between the house and the senate. 23.37 Sec. 2. Minnesota Statutes 1996, section 3.056, is amended 24.1 to read: 24.2 3.056 [DESIGNATION OF SUCCESSOR COMMITTEE.] 24.3 If a law assigns a power or duty to a named legislative 24.4 committee or its chair, and the committee has been renamed or no 24.5 longer exists, the speaker of the house of representatives or 24.6 the senate committee on rules and administration shall designate 24.7 the successor committee or chair for the law as provided in this 24.8 section. If the committee has been renamed but retains 24.9 jurisdiction of the subject of the power or duty, the speaker or 24.10 senate committee shall designate the renamed committee as 24.11 successor. If the committee has been renamed and jurisdiction 24.12 of the subject of the power or duty has been transferred to 24.13 another committee, the speaker or senate committee shall 24.14 designate the committee with current jurisdiction as the 24.15 successor. If the named committee no longer exists, the speaker 24.16 or senate committee shall designate as successor the committee 24.17 with the jurisdiction that most closely corresponds with the 24.18 former jurisdiction of the named committee. The house of 24.19 representatives and the senate shall maintain a list on the 24.20 World Wide Web of renamed or successor committees to committees 24.21 that are referenced in law. 24.22 Sec. 3. Minnesota Statutes 1996, section 3.099, 24.23 subdivision 3, is amended to read: 24.24 Subd. 3. [LEADERS.] The senate committee on rules and 24.25 administration for the senate and the house committee on rules 24.26 and legislative administration for the house may each designate 24.27 for their respective body up to
threefive leadership positions 24.28 to receive up to 140 percent of the compensation of other 24.29 members. 24.30 At the commencement of each biennial legislative session, 24.31 each house of the legislature shall adopt a resolution 24.32 designating its majority and minority leader. 24.33 The majority leader is the person elected by the caucus of 24.34 members in each house which is its largest political 24.35 affiliation. The minority leader is the person elected by the 24.36 caucus which is its second largest political affiliation. 25.1 Sec. 4. Minnesota Statutes 1996, section 3.225, 25.2 subdivision 1, is amended to read: 25.3 Subdivision 1. [APPLICATION.] This section applies to a 25.4 contract for professional or technical services entered into by 25.5 the house of representatives, the senate, the legislative 25.6 coordinating commission, or any group under the jurisdiction of 25.7 the legislative coordinating commission. For purposes of this 25.8 section, "professional or technical services" contracthas the 25.9 meaning defined in section 16B.17 but does not include legal 25.10 services for official legislative business. 25.11 Sec. 5. Minnesota Statutes 1996, section 3.85, subdivision 25.12 3, is amended to read: 25.13 Subd. 3. [MEMBERSHIP.] The commission consists of fivesix 25.14 members of the senate appointed by the subcommittee on 25.15 committees of the committee on rules and administration and five25.16 six members of the house of representatives appointed by the 25.17 speaker. Members shall be appointed at the commencement of each 25.18 regular session of the legislature for a two-year term beginning 25.19 January 16 of the first year of the regular session. Vacancies 25.20 that occur while the legislature is in session shall be filled 25.21 like regular appointments. If the legislature is not in 25.22 session, senate vacancies shall be filled by the last 25.23 subcommittee on committees of the senate committee on rules and 25.24 administration or other appointing authority designated by the 25.25 senate rules, and house vacancies shall be filled by the last 25.26 speaker of the house, or if the speaker is not available, by the 25.27 last chair of the house rules committee. 25.28 Sec. 6. Minnesota Statutes 1996, section 10A.09, 25.29 subdivision 6, is amended to read: 25.30 Subd. 6. Each individual who is required to file a 25.31 statement of economic interest shall file a supplementary 25.32 statement on April 15 of each year that the individual remains 25.33 in office if information on the most recently filed statement 25.34 has changed. The statement shall include a space for each25.35 category of information in which the individual may indicate25.36 that no change in information has occurred since the previous26.1 statement.The supplementary statement, if required, shall 26.2 include the amount of each honorarium in excess of $50 received 26.3 since the previous statement, together with the name and address 26.4 of the source of the honorarium. A statement of economic 26.5 interest submitted by an officeholder shall be filed with the 26.6 statement submitted as a candidate. 26.7 Sec. 7. Minnesota Statutes 1996, section 10A.20, 26.8 subdivision 2, is amended to read: 26.9 Subd. 2. The reports shall be filed with the board on or 26.10 before January 31 of each year and additional reports shall be 26.11 filed as required and in accordance with clauses (a) and (b). 26.12 (a) In each year in which the name of the candidate is on 26.13 the ballot, the report of the principal campaign committee shall 26.14 be filed ten15 days before a primary and ten days before a 26.15 general election, seven days before a special primary and a 26.16 special election, and ten days after a special election cycle. 26.17 The report due after a special election may be filed on January 26.18 31 following the special election if the special election is 26.19 held not more than 60 days before that date. 26.20 (b) In each general election year political committees and 26.21 political funds other than principal campaign committees shall 26.22 file reports ten days before a primary and general election. 26.23 If a scheduled filing date falls on a Saturday, Sunday or 26.24 legal holiday, the filing date shall be the next regular 26.25 business day. 26.26 Sec. 8. Minnesota Statutes 1996, section 14.47, 26.27 subdivision 8, is amended to read: 26.28 Subd. 8. [SALES AND DISTRIBUTION OF COMPILATION.] Any 26.29 compilation, reissue, or supplement published by the revisor 26.30 shall be sold by the revisor for a reasonable fee and its 26.31 proceeds deposited in the general fund. An agency shall 26.32 purchase from the revisor the number of copies of the 26.33 compilation or supplement needed by the agency. The revisor 26.34 shall provide without charge copies of each edition of any 26.35 compilation, reissue, or supplement to the persons or bodies 26.36 listed in this subdivision. Those copies must be marked with 27.1 the words "State Copy" and kept for the use of the office. The 27.2 revisor shall distribute: 27.3 (a) 25 copies to the office of the attorney general; 27.4 (b) 12 copies for the legislative commission for review of27.5 administrative rulestwo copies to the leader of each caucus in 27.6 the house of representatives and the senate, two copies to the 27.7 legislative reference library, and one copy each to the house of 27.8 representatives research department and the office of senate 27.9 counsel and research; 27.10 (c) 3 copies to the revisor of statutes for transmission to 27.11 the Library of Congress for copyright and depository purposes; 27.12 (d) 150 copies to the state law library; 27.13 (e) 10 copies to the law school of the University of 27.14 Minnesota; and 27.15 (f) one copy of any compilation or supplement to each 27.16 county library maintained pursuant to section 134.12 upon its 27.17 request, except in counties containing cities of the first 27.18 class. If a county has not established a county library 27.19 pursuant to section 134.12, the copy will be provided to any 27.20 public library in the county upon its request. 27.21 Sec. 9. Minnesota Statutes 1996, section 15.0597, 27.22 subdivision 5, is amended to read: 27.23 Subd. 5. [NOMINATIONS FOR VACANCIES.] Any person may make 27.24 a self-nomination for appointment to an agency vacancy by 27.25 completing an application on a form prepared and distributed by 27.26 the secretary. The secretary may provide for the submission of 27.27 the application by electronic means. Any person or group of 27.28 persons may, on the prescribed application form, nominate 27.29 another person to be appointed to a vacancy so long as the 27.30 person so nominated consents in writing on the application form 27.31 to the nomination. The application form shall specify the 27.32 nominee's name, mailing address, telephone number, preferred 27.33 agency position sought, a statement that the nominee satisfies 27.34 any legally prescribed qualifications, and any other information 27.35 the nominating person feels would be helpful to the appointing 27.36 authority. The nominating person has the option of indicating 28.1 the nominee's sex, political party preference or lack thereof, 28.2 status with regard to disability, race and national origin on 28.3 the application form. The application form shall make the 28.4 option known. If a person submits an application at the 28.5 suggestion of an appointing authority, the person shall so 28.6 indicate on the application form. Twenty-one days after 28.7 publication of a vacancy in the State Register pursuant to 28.8 subdivision 4, the secretary shall submit copies of all 28.9 applications received for a position to the appointing authority 28.10 charged with filling the vacancy. If no applications have been 28.11 received by the secretary for the vacant position by the date 28.12 when copies must be submitted to the appointing authority, the 28.13 secretary shall so inform the appointing authority. 28.14 Applications received by the secretary shall be deemed to have 28.15 expired one year after receipt of the application. An 28.16 application for a particular agency position shall be deemed to 28.17 be an application for all vacancies in that agency occurring 28.18 prior to the expiration of the application and shall be public 28.19 information. 28.20 Sec. 10. Minnesota Statutes 1996, section 15.0597, 28.21 subdivision 7, is amended to read: 28.22 Subd. 7. [REPORT.] Together with the compilation required 28.23 in subdivision 3, the secretary shall annually deliver to the 28.24 governor and the legislature a report containing the following 28.25 information: 28.26 (1) the number of vacancies occurring in the preceding 28.27 year; 28.28 (2) the number of vacancies occurring as a result of 28.29 scheduled ends of terms, unscheduled vacancies and the creation 28.30 of new positions; 28.31 (3) breakdowns by county, legislative district, and 28.32 congressional district, and, if known, the sex, political party 28.33 preference or lack thereof, status with regard to disability, 28.34 race, and national origin, for members whose agency membership 28.35 terminated during the year and appointees to the vacant 28.36 positions; and 29.1 (4) the number of vacancies filled from applications 29.2 submitted by (i) the appointing authorities for the positions 29.3 filled, (ii) nominating persons and self-nominees who submitted 29.4 applications at the suggestion of appointing authorities, and 29.5 (iii) all others. 29.6 Sec. 11. Minnesota Statutes 1996, section 15.0599, 29.7 subdivision 4, is amended to read: 29.8 Subd. 4. [REGISTRATION; INFORMATION REQUIRED.] (a) The 29.9 appointing authority of a newly established agency shall provide 29.10 the secretary with the following information: 29.11 (1) the name, mailing address, and telephone number of the 29.12 agency; 29.13 (2) the legal authority for the establishment of the agency 29.14 and the name and the title of the person or persons appointing 29.15 agency members; 29.16 (3) the powers and duties of the agency and whether the 29.17 agency, however designated, is best described by section 15.012, 29.18 paragraph (a), (b), (c), (e), or (f); 29.19 (4) the number of authorized members, together with any 29.20 prescribed restrictions on eligibility; 29.21 (5) the roster of current members, including mailing 29.22 addresses and telephone numbers; 29.23 (6) a breakdown of the membership showing distribution by 29.24 county, legislative district, and congressional district and 29.25 compliance with any restrictions listed in accordance with 29.26 clause (4); 29.27 (7) if any members have voluntarily provided the 29.28 information, the sex, age, political preference or lack of 29.29 preference, status with regard to disability, race, and national 29.30 origin of those members; 29.31 (8) the dates of commencement and expiration of membership 29.32 terms and the expiration date of the agency, if any; 29.33 (9) the compensation of members and appropriations or other 29.34 money available to the agency; 29.35 (10) the name of the state agency or other entity, if any, 29.36 required to provide staff or administrative support to the 30.1 agency; 30.2 (11) the regular meeting schedule, if any, and the 30.3 approximate number of hours a month of meetings or other 30.4 activities required of members; and 30.5 (12) a brief statement of the goal or purpose of the 30.6 agency, along with a summary of what an existing agency has 30.7 done, or what a newly established agency plans to do to achieve 30.8 its goal or purpose. 30.9 (b) The chair of an existing agency shall provide 30.10 information, covering the fiscal year in which it is 30.11 registering, on the number of meetings it has held, its 30.12 expenses, and the number of staff hours, if any, devoted to its 30.13 support. The chair shall also, if necessary, update any of the 30.14 information previously provided in accordance with paragraph (a). 30.15 (c) The secretary shall provide forms for the reporting of 30.16 information required by this subdivision and may provide for 30.17 reporting by electronic means. 30.18 Sec. 12. Minnesota Statutes 1996, section 16A.10, 30.19 subdivision 2, is amended to read: 30.20 Subd. 2. [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of 30.21 each even-numbered year, an agency must file the following with 30.22 the commissioner: 30.23 (1) budget and departmental earningsestimates for the most 30.24 recent and current fiscal years; 30.25 (2) its upcoming biennial budget and departmental earnings30.26 estimates; 30.27 (3) a comprehensive and integrated statement of agency 30.28 missions and outcome and performance measures; and 30.29 (4) a concise explanation of any planned changes in the 30.30 level of services or new activities. 30.31 The commissioner shall prepare and file the budget 30.32 estimates for an agency failing to file them. By November 30, 30.33 the commissioner shall send the final budget format, 30.34 departmental earnings report,agency budget plans or requests 30.35 for the next biennium, and copies of the filed material to the 30.36 ways and means and finance committees, except that the 31.1 commissioner shall not be required to transmit information that 31.2 identifies executive branch budget decision items. At this 31.3 time, a list of each employee's name, title, and salary must be 31.4 available to the legislature, either on paper or through 31.5 electronic retrieval. 31.6 Sec. 13. Minnesota Statutes 1996, section 16A.103, 31.7 subdivision 1, is amended to read: 31.8 Subdivision 1. [STATE REVENUE AND EXPENDITURES.] In 31.9 February and November each year, the commissioner shall prepare 31.10 and deliver to the governor and legislature a forecast of state 31.11 revenue and expenditures. The forecast must assume the 31.12 continuation of current laws and reasonable estimates of 31.13 projected growth in the national and state economies and 31.14 affected populations. Revenue must be estimated for all sources 31.15 provided for in current law. Expenditures must be estimated for 31.16 all obligations imposed by law and those projected to occur as a 31.17 result of inflation and variables outside the control of the 31.18 legislature. In determining the rate of inflation, the 31.19 application of inflation, and the other variables to be included 31.20 in the expenditure part of the forecast, the commissioner must 31.21 consult with the chair of the senate state government finance 31.22 committee, the chair of the house committee on ways and means, 31.23 and house and senate fiscal staff. In addition, the 31.24 commissioner shall forecast Minnesota personal income for each 31.25 of the years covered by the forecast and include these estimates 31.26 in the forecast documents. A forecast prepared during the first 31.27 fiscal year of a biennium must cover that biennium and the next 31.28 biennium. A forecast prepared during the second fiscal year of 31.29 a biennium must cover that biennium and the next two bienniums. 31.30 Sec. 14. Minnesota Statutes 1996, section 16A.11, 31.31 subdivision 1, is amended to read: 31.32 Subdivision 1. [WHEN.] The governor shall submit a 31.33 four-part budget to the legislature. Parts one and two, the 31.34 budget message and detailed operating budget, must be submitted 31.35 by the fourth Tuesday in January in each odd-numbered year. 31.36 Part three, the detailed recommendations as to capital 32.1 expenditure, must be submitted as follows: agency capital 32.2 budget requests by June 15July 1 of each odd-numbered year ;32.3 preliminary governor's recommendations by September 1 of each32.4 odd-numbered year;, and finalgovernor's recommendations by 32.5 February 1January 15 of each even-numbered year. Part four, 32.6 the detailed recommendations as to information technology 32.7 expenditure, must be submitted at the same time the governor 32.8 submits the budget message to the legislature. 32.9 Sec. 15. Minnesota Statutes 1996, section 16A.11, 32.10 subdivision 3b, is amended to read: 32.11 Subd. 3b. [CONTRACTS.] The detailed budget estimate must 32.12 also include the following information on professional or 32.13 technical services contracts: 32.14 (1) the number and amount of contracts over $40,000 for 32.15 each agency for the past biennium; 32.16 (2) the anticipated number and amount of contracts over 32.17 $40,000 for each agency for the upcoming biennium; and 32.18 (3) the total number and value of all contracts from the 32.19 previous biennium, and the anticipated total number and value of 32.20 all contracts for the upcoming biennium. 32.21 Sec. 16. Minnesota Statutes 1996, section 16A.11, 32.22 subdivision 3c, is amended to read: 32.23 Subd. 3c. [PART FOUR; DETAILED INFORMATION TECHNOLOGY 32.24 BUDGET.] The detailed information technology budget must include 32.25 recommendations for information technology projects to be funded 32.26 during the next biennium and planning estimates for an 32.27 additional two biennia. It must be submitted with projects32.28 ranked in order of importance among all projects as determined32.29 by the governor.32.30 Sec. 17. Minnesota Statutes 1996, section 16A.1285, 32.31 subdivision 3, is amended to read: 32.32 Subd. 3. [DUTIES OF THE COMMISSIONER OF FINANCE.] The 32.33 commissioner of finance shall classify, monitor, analyze, and 32.34 report all departmental earnings that fall within the definition 32.35 established in subdivision 1. Specifically, the commissioner 32.36 shall: 33.1 (1) establish and maintain a classification system that 33.2 clearly defines and distinguishes categories and types of 33.3 departmental earnings and takes into account the purpose of the 33.4 various earnings types and the extent to which various earnings 33.5 types serve a public or private interest; 33.6 (2) prepare a biennial report that documents collection 33.7 costs, purposes, and yields of all departmental earnings, the 33.8 report to be submitted to the legislature on or before November33.9 30 of each even-numbered yearthe fourth Tuesday in January in 33.10 each odd-numbered year and to include estimated data for the 33.11 year in which the report is prepared, actual data for the two 33.12 years immediately before, and estimates for the two years 33.13 immediately following; and 33.14 (3) prepare and maintain a detailed directory of all 33.15 departmental earnings. 33.16 Sec. 18. Minnesota Statutes 1996, section 16A.129, 33.17 subdivision 3, is amended to read: 33.18 Subd. 3. [CASH ADVANCES.] When the operations of any 33.19 nongeneral fund account would be impeded by projected cash 33.20 deficiencies resulting from delays in the receipt of grants, 33.21 dedicated income, or other similar receivables, and when the 33.22 deficiencies would be corrected within the budget period 33.23 involved, the commissioner of finance may use general fund cash 33.24 reserves to meet cash demands. If funds are transferred from 33.25 the general fund to meet cash flow needs, the cash flow 33.26 transfers must be returned to the general fund as soon as 33.27 sufficient cash balances are available in the account to which 33.28 the transfer was made. Any interest earned on general fund cash 33.29 flow transfers accrues to the general fund and not to the 33.30 accounts or funds to which the transfer was made. The 33.31 commissioner may advance general fund cash reserves to 33.32 nongeneral fund accounts where the receipts from other 33.33 governmental units cannot be collected within the budget period. 33.34 Sec. 19. Minnesota Statutes 1996, section 16A.15, 33.35 subdivision 3, is amended to read: 33.36 Subd. 3. [ALLOTMENT AND ENCUMBRANCE.] (a) A payment may 34.1 not be made without prior obligation. An obligation may not be 34.2 incurred against any fund, allotment, or appropriation unless 34.3 the commissioner has certified a sufficient unencumbered balance 34.4 or the accounting system shows sufficient allotment or 34.5 encumbrance balance in the fund, allotment, or appropriation to 34.6 meet it. The commissioner shall determine when the accounting 34.7 system may be used to incur obligations without the 34.8 commissioner's certification of a sufficient unencumbered 34.9 balance. An expenditure or obligation authorized or incurred in 34.10 violation of this chapter is invalid and ineligible for payment 34.11 until made valid. A payment made in violation of this chapter 34.12 is illegal. An employee authorizing or making the payment, or 34.13 taking part in it, and a person receiving any part of the 34.14 payment, are jointly and severally liable to the state for the 34.15 amount paid or received. If an employee knowingly incurs an 34.16 obligation or authorizes or makes an expenditure in violation of 34.17 this chapter or takes part in the violation, the violation is 34.18 just cause for the employee's removal by the appointing 34.19 authority or by the governor if an appointing authority other 34.20 than the governor fails to do so. In the latter case, the 34.21 governor shall give notice of the violation and an opportunity 34.22 to be heard on it to the employee and to the appointing 34.23 authority. A claim presented against an appropriation without 34.24 prior allotment or encumbrance may be made valid on 34.25 investigation, review, and approval by the commissioneragency 34.26 head in accordance with the commissioner's policy, if the 34.27 services, materials, or supplies to be paid for were actually 34.28 furnished in good faith without collusion and without intent to 34.29 defraud. The commissioner may then draw a warrant to pay the 34.30 claim just as properly allotted and encumbered claims are paid. 34.31 (b) The commissioner may approve payment for materials and 34.32 supplies in excess of the obligation amount when increases are 34.33 authorized by section 16B.07, subdivision 2. 34.34 (c) To minimize potential construction delay claims, an 34.35 agency with a project funded by a building appropriation may 34.36 allow a contractor to proceed with supplemental work within the 35.1 limits of the appropriation before money is encumbered. Under 35.2 this circumstance, the agency may requisition funds and allow 35.3 contractors to expeditiously proceed with a construction 35.4 sequence. While the contractor is proceeding, the agency shall 35.5 immediately act to encumber the required funds. 35.6 Sec. 20. Minnesota Statutes 1996, section 16A.642, 35.7 subdivision 1, is amended to read: 35.8 Subdivision 1. [REPORTS.] (a) The commissioner of finance 35.9 shall report to the chairs of the senate committee on finance 35.10 and the house of representatives committees on ways and means 35.11 and on capital investment by February 1 of each even-numbered35.12 odd-numbered year on the following: 35.13 (1) all state building projects for which bonds have been35.14 authorized and issued by a law enacted more than seven years35.15 before February 1 of that even-numbered year and of which 2035.16 percent or less of a project's authorization has been encumbered35.17 or otherwise obligated for the purpose stated in the law35.18 authorizing the issue; and35.19 (2) all state bonds authorized and issued for purposes35.20 other than building projects reported under clause (1), by a law35.21 enacted more than seven years before February 1 of that35.22 even-numbered year, and the amount of any balance that is35.23 unencumbered or otherwise not obligated for the purpose stated35.24 in the law authorizing the issue.35.25 (1) all laws authorizing the issuance of state bonds for 35.26 state or local government building projects enacted more than 35.27 five years before February 1 of that odd-numbered year; the 35.28 projects authorized to be acquired and constructed with the bond 35.29 proceeds for which less than 100 percent of the authorized total 35.30 cost has been expended, encumbered, or otherwise obligated; the 35.31 cost of contracts to be let in accordance with existing plans 35.32 and specifications shall be considered expended for this report; 35.33 and the amount of bonds not issued and bond proceeds held but 35.34 not previously expended, encumbered, or otherwise obligated for 35.35 these projects; and 35.36 (2) all laws authorizing the issuance of state bonds for 36.1 state or local government programs or projects other than those 36.2 described in clause (1), enacted more than five years before 36.3 February 1 of that odd-numbered year; and the amount of bonds 36.4 not issued and bond proceeds held but not previously expended, 36.5 encumbered, or otherwise obligated for these programs and 36.6 projects. 36.7 (b) The commissioner shall also report on bond 36.8 authorizations or bond proceed balances that may be canceled 36.9 because projects have been canceled, completed, or otherwise 36.10 concluded, or because the purposes for which the bonds were 36.11 authorized or issued have been canceled, completed, or otherwise 36.12 concluded. The bond authorizations or bond proceed balances 36.13 that are unencumbered or otherwise not obligated that are 36.14 reported by the commissioner under this subdivision are 36.15 canceled, effective July 1 of the year of the report, unless 36.16 specifically reauthorized by act of the legislature. 36.17 Sec. 21. Minnesota Statutes 1996, section 16A.642, is 36.18 amended by adding a subdivision to read: 36.19 Subd. 3. [APPLICATION OF UNUSED BOND PROCEEDS.] All 36.20 canceled bond proceeds shall be transferred to the state bond 36.21 fund and used to pay or redeem bonds from which they were 36.22 derived. 36.23 Sec. 22. Minnesota Statutes 1996, section 16B.20, 36.24 subdivision 2, is amended to read: 36.25 Subd. 2. [ADVISORY COUNCIL.] A small business and targeted 36.26 group procurement advisory council is created. The council 36.27 consists of 13 members appointed by the commissioner of 36.28 administration. A chair of the advisory council shall be 36.29 elected from among the members. The appointments are subject to 36.30 the appointments program provided by section 15.0597. The 36.31 terms, compensation, and removal of members are as provided in 36.32 section 15.059. Notwithstanding section 15.059, the council 36.33 does not expire until June 30, 1998. 36.34 Sec. 23. Minnesota Statutes 1996, section 16B.24, 36.35 subdivision 5, is amended to read: 36.36 Subd. 5. [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 37.1 The commissioner may rent out state property, real or personal, 37.2 that is not needed for public use, if the rental is not 37.3 otherwise provided for or prohibited by law. The property may 37.4 not be rented out for more than five years at a time without the 37.5 approval of the state executive council and may never be rented 37.6 out for more than 25 years. A rental agreement may provide that 37.7 the state will reimburse a tenant for a portion of capital 37.8 improvements that the tenant makes to state real property if the 37.9 state does not permit the tenant to renew the lease at the end 37.10 of the rental agreement. 37.11 (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 37.12 trust fund lands, other state lands under the jurisdiction of 37.13 the department of natural resources, lands forfeited for 37.14 delinquent taxes, lands acquired under section 298.22, or lands 37.15 acquired under section 41.56 which are under the jurisdiction of 37.16 the department of agriculture. 37.17 (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 37.18 Chapel, located within the boundaries of Fort Snelling State 37.19 Park, is available for use only on payment of a rental fee. The 37.20 commissioner shall establish rental fees for both public and 37.21 private use. The rental fee for private use by an organization 37.22 or individual must reflect the reasonable value of equivalent 37.23 rental space. Rental fees collected under this section must be 37.24 deposited in the general fund. 37.25 (d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 37.26 shall establish rental rates for all living accommodations 37.27 provided by the state for its employees. Money collected as 37.28 rent by state agencies pursuant to this paragraph must be 37.29 deposited in the state treasury and credited to the general fund. 37.30 (e) [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 37.31 AGENCIES.] The commissioner may lease portions of the 37.32 state-owned buildings in the capitol complex, the capitol square 37.33 building, the health building, the Duluth government center, and 37.34 the building at 1246 University Avenue, St. Paul, Minnesota, to 37.35 state agencies and the court administrator on behalf of the 37.36 judicial branch of state government and charge rent on the basis 38.1 of space occupied. Notwithstanding any law to the contrary, all 38.2 money collected as rent pursuant to the terms of this section 38.3 shall be deposited in the state treasury. Money collected as 38.4 rent to recover the depreciation and bond interest costs of a 38.5 building funded from the state bond proceeds fund shall be 38.6 credited to the general fund. Money collected as rent to 38.7 recover capital expenditures from capital asset preservation and 38.8 replacement appropriations and statewide building access 38.9 appropriations shall be credited to a segregated account in a 38.10 special revenue fund. Money in the account is appropriated to 38.11 the commissioner to be expended for asset preservation projects 38.12 as determined by the commissioner. Money collected as rent to 38.13 recover the depreciation costand interest costs of a building 38.14 built with other state dedicated funds shall be credited to the 38.15 dedicated fund which funded the original acquisition or 38.16 construction. All other money received shall be credited to the 38.17 general services revolving fund. 38.18 Sec. 24. [16B.275] [CAPITOL AREA CAFETERIAS.] 38.19 In entering into contracts for operation of cafeterias in 38.20 the capitol complex, the commissioner must attempt to ensure the 38.21 department does not receive revenues in excess of those needed 38.22 to operate and maintain the cafeteria space. 38.23 Sec. 25. Minnesota Statutes 1996, section 16B.35, is 38.24 amended by adding a subdivision to read: 38.25 Subd. 5. [CONTRACTOR'S BOND NOT REQUIRED.] Sections 574.26 38.26 to 574.32 do not apply to this section. 38.27 Sec. 26. Minnesota Statutes 1996, section 16B.70, 38.28 subdivision 2, is amended to read: 38.29 Subd. 2. [COLLECTION AND REPORTS.] All permit surcharges 38.30 must be collected by each municipality and a portion of them 38.31 remitted to the state. Each municipality having a population 38.32 greater than 20,000 people shall prepare and submit to the 38.33 commissioner once a month a report of fees and surcharges on 38.34 fees collected during the previous month but shall retain the 38.35 greater of two percent or that amount collected up to $25 to 38.36 apply against the administrative expenses the municipality 39.1 incurs in collecting the surcharges. All other municipalities 39.2 shall submit the report and surcharges on fees once a quarter 39.3 but shall retain the greater of four percent or that amount 39.4 collected up to $25 to apply against the administrative expenses 39.5 the municipalities incur in collecting the surcharges. The 39.6 report, which must be in a form prescribed by the commissioner, 39.7 must be submitted together with a remittance covering the 39.8 surcharges collected by the 15th day following the month or 39.9 quarter in which the surcharges are collected. All money 39.10 collected by the commissioner through surcharges and other fees 39.11 prescribed by sections 16B.59 to 16B.75 , which are payable to39.12 the state, must be paidshall be deposited in the state 39.13 government special revenue fund and is appropriated to the 39.14 commissioner who shall deposit them in the state treasury for39.15 credit to a special revenue fundfor the purpose of 39.16 administering and enforcing the state building code under 39.17 sections 16B.59 to 16B.75. 39.18 Sec. 27. [16B.93] [DEFINITIONS.] 39.19 Subdivision 1. [APPLICABILITY.] For purposes of sections 39.20 16B.93 to 16B.96, the terms in this section have the meanings 39.21 given them. 39.22 Subd. 2. [CONTRACTOR.] "Contractor" means an individual, 39.23 business entity, or other private organization that is awarded a 39.24 contract by the commissioner to negotiate and administer the 39.25 price contracts for prescription drugs under section 16B.94, 39.26 subdivision 2. 39.27 Subd. 3. [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING 39.28 ALLIANCE OR NONGOVERNMENTAL ALLIANCE.] "Nongovernmental 39.29 pharmaceutical contracting alliance" or "nongovernmental 39.30 alliance" means the alliance established and administered by the 39.31 commissioner under the authority granted in section 16B.94. 39.32 Subd. 4. [MANUFACTURER.] "Manufacturer" means a 39.33 manufacturer as defined under section 151.44, paragraph (c). 39.34 Subd. 5. [PRESCRIPTION DRUG.] "Prescription drug" means a 39.35 drug as defined in section 151.44, paragraph (d). 39.36 Subd. 6. [PURCHASER.] "Purchaser" means a pharmacy as 40.1 defined in section 151.01, subdivision 2, including pharmacies 40.2 operated by health maintenance organizations and hospitals. 40.3 Subd. 7. [SELLER.] "Seller" means a person, other than a 40.4 manufacturer, who sells or distributes drugs to purchasers or 40.5 other sellers within the state. 40.6 Sec. 28. [16B.94] [NONGOVERNMENTAL PHARMACEUTICAL 40.7 CONTRACTING ALLIANCE.] 40.8 Subdivision 1. [ESTABLISHMENT AND ADMINISTRATION.] The 40.9 commissioner, in consultation with appropriate experts on 40.10 pharmaceutical pricing, shall establish and administer a 40.11 nongovernmental pharmaceutical contracting alliance. The 40.12 nongovernmental alliance shall negotiate contracts for 40.13 prescription drugs with manufacturers and sellers and shall make 40.14 the contract prices negotiated available to purchasers. The 40.15 commissioner shall select the prescription drugs for which price 40.16 contracts are negotiated. The commissioner shall, to the 40.17 greatest extent feasible, operate the alliance using the 40.18 administrative and contracting procedures of the Minnesota 40.19 multistate governmental contracting alliance for pharmaceuticals 40.20 administered by the commissioner under the authority granted in 40.21 section 471.59. The commissioner may negotiate a price 40.22 differential based on volume purchasing and may also grant 40.23 multiple awards. 40.24 Subd. 2. [USE OF CONTRACTOR.] The commissioner may 40.25 contract with an individual, business entity, or other private 40.26 organization to serve as a contractor to negotiate and 40.27 administer the price contracts for prescription drugs. In 40.28 developing requirements for the contractor, the commissioner 40.29 shall consult with appropriate experts on pharmaceutical pricing. 40.30 Subd. 3. [ADMINISTRATIVE COSTS.] The commissioner may 40.31 charge manufacturers and sellers that enter into prescription 40.32 drug price contracts with the commissioner under subdivision 1 a 40.33 fee to cover the commissioner's expenses in negotiating and 40.34 administering the price contracts. The fee established shall 40.35 have the force and effect of law if the requirements of section 40.36 14.386, paragraph (a), are met. Section 14.386, paragraph (b), 41.1 does not apply. Fees collected by the commissioner under this 41.2 subdivision must be deposited in the state treasury and credited 41.3 to a special account. Money in the account is appropriated to 41.4 the commissioner to pay the costs of negotiating and 41.5 administering price contracts under this section. 41.6 Subd. 4. [EXPANSION TO OTHER STATES.] The commissioner may 41.7 expand the nongovernmental alliance to other states and make the 41.8 contract prices negotiated available to non-Minnesota purchasers. 41.9 Sec. 29. [16B.95] [STATE CONTRACT PRICE.] 41.10 Subdivision 1. [MANUFACTURER AND SELLER REQUIREMENT.] A 41.11 manufacturer or seller that contracts with the commissioner 41.12 shall make the contract price negotiated available to all 41.13 purchasers. 41.14 Subd. 2. [PURCHASER REQUIREMENT.] The commissioner shall 41.15 require purchasers that purchase prescription drugs at the 41.16 contract price to pass at least 75 percent of the savings 41.17 resulting from purchases at the negotiated contract price to 41.18 consumers. The commissioner may require a purchaser that plans 41.19 to purchase prescription drugs at the contract price negotiated 41.20 by the commissioner to submit any information regarding 41.21 prescription drug purchase projections the commissioner 41.22 determines is necessary for contract price negotiations. 41.23 Sec. 30. [16B.96] [NONDISCRIMINATION.] 41.24 A health plan company, as defined in section 62Q.01, shall 41.25 not discriminate against a purchaser for taking advantage of the 41.26 contract price negotiated by the commissioner. 41.27 Sec. 31. [43A.046] [STAFF REDUCTIONS.] 41.28 In order to maximize delivery of services to the public, if 41.29 layoffs of state employees are necessary, each agency with more 41.30 than 50 full-time equivalent employees must reduce at least the 41.31 same percentage of management and supervisory personnel as line 41.32 and support personnel. 41.33 Sec. 32. [43A.047] [CONTRACTED SERVICES.] 41.34 (a) Executive agencies, including the Minnesota state 41.35 colleges and universities system, must demonstrate that they 41.36 cannot use available staff before hiring outside consultants or 42.1 services. If use of consultants is necessary, agencies are 42.2 encouraged to negotiate contracts that will involve permanent 42.3 staff, so as to upgrade and maximize training of state employees. 42.4 (b) If agencies reduce operating budgets, agencies must 42.5 give priority to reducing spending on professional and technical 42.6 service contracts before laying off permanent employees. 42.7 (c) Agencies must report to senate finance and house ways 42.8 and means committees by August 1 each year on implementation of 42.9 this section during the previous fiscal year. The reports must 42.10 include amounts spent on professional and technical service 42.11 contracts during the previous fiscal year. 42.12 Sec. 33. Minnesota Statutes 1996, section 43A.17, 42.13 subdivision 4, is amended to read: 42.14 Subd. 4. [ MEDICALSPECIALISTS.] (a) The commissioner may 42.15 without regard to subdivision 1 establish special salary rates 42.16 and plans of compensation designed to attract and retain 42.17 exceptionally qualified doctors of medicine. These rates and 42.18 plans shall be included in the commissioner's plan. In 42.19 establishing salary rates and eligibility for nomination for 42.20 payment at special rates, the commissioner shall consider the 42.21 standards of eligibility established by national medical 42.22 specialty boards where appropriate. The incumbents assigned to 42.23 these special ranges shall be excluded from the collective 42.24 bargaining process. 42.25 (b) The commissioner may without regard to subdivision 1, 42.26 but subject to collective bargaining agreements or compensation 42.27 plans, establish special salary rates designed to attract and 42.28 retain exceptionally qualified information systems staff. 42.29 Sec. 34. Minnesota Statutes 1996, section 43A.38, 42.30 subdivision 4, is amended to read: 42.31 Subd. 4. [USE OF STATE PROPERTY.] (a) An employee shall 42.32 not use or allow the use of state time, supplies or state-owned 42.33 or leased property and equipment for the employee's private 42.34 interests or any other use not in the interest of the state, 42.35 except as provided by law. 42.36 (b) An employee may use state time, property, or equipment 43.1 to communicate electronically with other persons including, but 43.2 not limited to, elected officials, the employer, or an exclusive 43.3 bargaining representative under chapter 179A, provided this use, 43.4 including the value of the time spent, results in no incremental 43.5 cost to the state or results in an incremental cost that is so 43.6 small as to make accounting for it unreasonable or 43.7 administratively impracticable. 43.8 (c) The commissioners of administration and employee 43.9 relations shall issue a statewide policy on the use of 43.10 electronic mail and other forms of electronic communications by 43.11 executive branch state employees. The policy is not subject to 43.12 the provisions of chapter 14 or 179A. Appointing authorities in 43.13 the legislative and judicial branches shall issue policies on 43.14 these issues for their employees. The policies shall permit 43.15 state employees to make reasonable use of state time, property, 43.16 and equipment for personal communications and shall address 43.17 issues of privacy, content of communications, and the definition 43.18 of reasonable use as well as other issues the commissioners and 43.19 appointing authorities identify as necessary and relevant. 43.20 Sec. 35. [62J.685] [PRESCRIPTION DRUG PRICE DISCLOSURE.] 43.21 By January 1, 1998, and annually thereafter, a health plan 43.22 company or hospital licensed under chapter 144 must submit to 43.23 the attorney general the total amount of: (1) aggregate 43.24 purchases of prescription drugs, and (2) discount, rebate or 43.25 other payment received during the previous calendar year for 43.26 aggregate purchases of prescription drugs, including any fee 43.27 associated with education, data collection, research, training 43.28 or market share movement received from a manufacturer as defined 43.29 under section 151.44, paragraph (c), or wholesale drug 43.30 distributor as defined under section 151.44, paragraph (d). The 43.31 identification of individual manufacturers or wholesalers or 43.32 specific drugs is not required. The attorney general shall make 43.33 this information available to the public through the information 43.34 clearinghouse under section 62J.2930. 43.35 Sec. 36. Minnesota Statutes 1996, section 116P.05, 43.36 subdivision 1, is amended to read: 44.1 Subdivision 1. [MEMBERSHIP.] (a) A legislative commission 44.2 on Minnesota resources of 1620 members is created, consisting 44.3 of the chairs of the house and senate committees on environment 44.4 and natural resources or designees appointed for the terms of 44.5 the chairs, the chairs of the house and senate committees on 44.6 environment and natural resources finance or designees appointed 44.7 for the terms of the chairs, the chairs of the house ways and 44.8 means and senate finance committees or designees appointed for 44.9 the terms of the chairs, sixseven members of the senate 44.10 appointed by the subcommittee on committees of the committee on 44.11 rules and administration, and sixseven members of the house 44.12 appointed by the speaker. 44.13 At least twothree members from the senate and twothree 44.14 members from the house must be from the minority caucus. 44.15 Members are entitled to reimbursement for per diem expenses plus 44.16 travel expenses incurred in the services of the commission. 44.17 (b) Members shall appoint a chair who shall preside and 44.18 convene meetings as often as necessary to conduct duties 44.19 prescribed by this chapter. 44.20 (c) Members shall serve on the commission until their 44.21 successors are appointed. 44.22 (d) Vacancies occurring on the commission shall not affect 44.23 the authority of the remaining members of the commission to 44.24 carry out their duties, and vacancies shall be filled in the 44.25 same manner under paragraph (a). 44.26 Sec. 37. Minnesota Statutes 1996, section 138.31, is 44.27 amended by adding a subdivision to read: 44.28 Subd. 14. "Qualified professional archaeologist" means an 44.29 archaeologist who meets the United States Secretary of the 44.30 Interior's professional qualification standards in Code of 44.31 Federal Regulations, title 36, part 61, appendix A, or 44.32 subsequent revisions. 44.33 Sec. 38. Minnesota Statutes 1996, section 138.35, is 44.34 amended to read: 44.35 138.35 [STATE ARCHAEOLOGIST.] 44.36 Subdivision 1. [APPOINTMENT.] The state archaeologist 45.1 shall be a qualified professional archaeologist who meets the45.2 United States Secretary of the Interior's professional45.3 qualification standards in Code of Federal Regulations, title45.4 36, part 61, appendix A. The state archaeologist shall be paid45.5 a salary in the range of salaries paid to comparable state45.6 employees in the classified service. The state archaeologist45.7 may not be employed by the Minnesota historical society. The45.8 state archaeologist shall beappointed by the boardexecutive 45.9 council of the Minnesota historical society in consultation with 45.10 the Indian affairs council for a four-year term.to perform the 45.11 duties in sections 138.31 to 138.42. The position is in the 45.12 unclassified service in the executive branch and is subject to 45.13 chapter 43A but not chapter 179A. The compensation and terms 45.14 and conditions of employment are as provided by section 43A.18, 45.15 subdivision 3. The state archaeologist's salary shall be 45.16 established by the commissioner of employee relations within a 45.17 range established by the commissioner of employee relations. 45.18 Subd. 1a. [ADMINISTRATIVE SUPPORT; STAFF.] The 45.19 commissioner of administration shall provide the state 45.20 archaeologist with necessary administrative services. State 45.21 agencies shall provide the state archaeologist upon request with 45.22 advisory staff services on matters relating to the duties and 45.23 jurisdiction of the state archaeologist. The state 45.24 archaeologist shall hire staff and maintain offices as necessary 45.25 to perform the duties in sections 138.31 to 138.42. Staff shall 45.26 serve in the unclassified service and be governed by section 45.27 43A.18, subdivision 2. 45.28 Subd. 1b. [CONTRACTS; VOLUNTEERS; GRANTS AND GIFTS.] The 45.29 state archaeologist may contract with the federal government, 45.30 local governmental units, other states, the university and other 45.31 educational institutions, and private persons or organizations 45.32 as necessary in the performance of the duties in sections 138.31 45.33 to 138.42. Contracts made under this section for professional 45.34 services shall not be subject to chapter 16B, as it relates to 45.35 competitive bidding. The state archaeologist may recruit, 45.36 train, and accept, without regard to personnel laws or rules, 46.1 the services of individuals as volunteers for or in aid of 46.2 performance of the state archaeologist's duties, and may provide 46.3 for the incidental expenses of volunteers, such as 46.4 transportation, lodging, and subsistence. The state 46.5 archaeologist may apply for, receive, and expend grants and 46.6 gifts of money consistent with the powers and duties in sections 46.7 138.31 to 138.42. Any money so received is appropriated for the 46.8 purpose for which it was granted. 46.9 Subd. 2. [DUTIES OF STATE ARCHAEOLOGIST.] The duties of 46.10 the state archaeologist shall include the following: 46.11 (a) to sponsor, engage in, and direct fundamental research 46.12 into the archaeology of this state and to encourage and 46.13 coordinate archaeological research and investigation undertaken 46.14 within the state .; 46.15 (b) to cooperate with other agencies of the state which may 46.16 have authority in areas where state sites are located, or which 46.17 may have the responsibility for marking state sites, or 46.18 arranging for their being viewed by the public .; 46.19 (c) to protect to the extent possible and to encourage the 46.20 preservation of archaeological sites located on privately owned 46.21 property .; 46.22 (d) to retrieve and protect objects of archaeological 46.23 significance discovered by field archaeology on state sites or 46.24 discovered during the course of any public construction or 46.25 demolition work ,and, to the extent possible, those discovered 46.26 during the course of any other construction or demolition work .; 46.27 (e) to obtain for the state other objects of archaeological 46.28 significance, and data relating thereto .; 46.29 (f) to cooperate with the historical society, the 46.30 university, and other custodians to preserve objects of 46.31 archaeological significance, together with the data relating 46.32 thereto .; 46.33 (g) to disseminate archaeological facts through the 46.34 publication of reports of archaeological research conducted 46.35 within the state .; 46.36 (h) to approve licensing of qualified personsprofessional 47.1 archaeologists to engage in field archaeology on state sites, as 47.2 provided in section 138.36 ,; and 47.3 (i) to otherwise carry out and enforce sections 138.31 to 47.4 138.42. 47.5 Subd. 3. [EMPLOYMENT OF PERSONNEL.] The state47.6 archaeologist may employ personnel to assist in carrying out the47.7 state archaeologist's duties and may spend state appropriations47.8 to compensate such personnel.47.9 Sec. 39. Minnesota Statutes 1996, section 138.91, is 47.10 amended by adding a subdivision to read: 47.11 Subd. 4. [SALARY SUPPLEMENT.] The Minnesota humanities 47.12 commission is eligible for a salary supplement in the same 47.13 manner as state agencies. The commissioner of finance shall 47.14 determine the amount of the salary supplement based on available 47.15 appropriations. Employees of the commission shall be paid in 47.16 accordance with the appropriate pay plan. 47.17 Sec. 40. Minnesota Statutes 1996, section 151.21, is 47.18 amended by adding a subdivision to read: 47.19 Subd. 4a. A pharmacy must post a sign in a conspicuous 47.20 location and in a typeface easily seen at the counter where 47.21 prescriptions are dispensed stating: "In order to save you 47.22 money, this pharmacy will substitute whenever possible an 47.23 FDA-approved, less expensive, generic drug product, which is 47.24 therapeutically equivalent to and safely interchangeable with 47.25 the one prescribed by your doctor, unless you object to this 47.26 substitution. 47.27 Sec. 41. Minnesota Statutes 1996, section 176.611, is 47.28 amended by adding a subdivision to read: 47.29 Subd. 2a. [SETTLEMENT AND CONTINGENCY RESERVE ACCOUNT.] To 47.30 reduce long-term costs, minimize impairment to agency operations 47.31 and budgets, and distribute risk of one-time catastrophic 47.32 claims, the commissioner of employee relations shall maintain a 47.33 separate account within the state compensation revolving fund. 47.34 The account shall be used to pay for lump-sum or annuitized 47.35 settlements, structured claim settlements, and one-time large, 47.36 legal, catastrophic medical, indemnity, or other irregular claim 48.1 costs that might otherwise pose a significant burden for 48.2 agencies. The commissioner of employee relations, with the 48.3 approval of the commissioner of finance, may establish criteria 48.4 and procedures for payment from the account on an agency's 48.5 behalf. The commissioner of employee relations may assess 48.6 agencies on a reimbursement or premium basis from time-to-time 48.7 to ensure adequate account reserves. The account consists of 48.8 appropriations from the general fund, receipts from billings to 48.9 agencies, and credited investment gains or losses attributable 48.10 to balances in the account. The state board of investment shall 48.11 invest the assets of the account according to section 11A.24. 48.12 Sec. 42. [197.79] [VETERANS' BONUS PROGRAM.] 48.13 Subdivision 1. [DEFINITIONS.] For purposes of this 48.14 section, the following terms have the meanings given them. 48.15 (a) "Applicant" means a veteran or a veteran's guardian, 48.16 conservator, or personal representative or a beneficiary or a 48.17 beneficiary's guardian, conservator, or personal representative 48.18 who has filed an application with the commissioner for a bonus 48.19 under this section. 48.20 (b) "Application" means a request for a bonus payment by a 48.21 veteran, a veteran's beneficiary, or a veteran's guardian, 48.22 conservator, or personal representative through submission of 48.23 written information on a form designed by the commissioner for 48.24 this purpose. 48.25 (c) "Beneficiary" means in relation to a deceased veteran 48.26 and in the order named: 48.27 (1) the surviving spouse, if not remarried; 48.28 (2) the children of the veteran, if there is no surviving 48.29 spouse or the surviving spouse has remarried; 48.30 (3) the veteran's surviving parent or parents; 48.31 (4) the veteran's surviving sibling or siblings; or 48.32 (5) the veteran's estate. 48.33 (d) "Commissioner" means the commissioner of the department 48.34 of veterans affairs. 48.35 (e) "Department" means the department of veterans affairs. 48.36 (f) "Eligibility period for the bonus" means the period 49.1 from August 2, 1990, to July 31, 1991. 49.2 (g) "Guardian" or "conservator" means the legally appointed 49.3 representative of a minor beneficiary or incompetent veteran, 49.4 the chief officer of a hospital or institution in which the 49.5 incompetent veteran is placed if the officer is authorized to 49.6 accept money for the benefit of the minor or incompetent, the 49.7 person determined by the commissioner to be the person who is 49.8 legally charged with the responsibility for the care of the 49.9 minor beneficiary or incompetent veteran, or the person 49.10 determined by the commissioner to be the person who has assumed 49.11 the responsibility for the care of the minor beneficiary or 49.12 incompetent veteran. 49.13 (h) "Honorable service" means honorable service in the 49.14 United States armed forces, as evidenced by: 49.15 (1) an honorable discharge; 49.16 (2) a general discharge under honorable conditions; 49.17 (3) in the case of an officer, a certificate of honorable 49.18 service; or 49.19 (4) in the case of an applicant who is currently serving in 49.20 active duty in the United States armed forces, a certificate 49.21 from an appropriate service authority that the applicant's 49.22 service to date has been honorable. 49.23 (i) "Resident veteran" means a veteran who served in active 49.24 duty in the United States armed forces at any time during the 49.25 eligibility period for the bonus, and who also: 49.26 (1) has been separated or discharged from the United States 49.27 armed forces, and whose home of record at the time of entry into 49.28 active duty in the United States armed forces, as indicated on 49.29 the person's form DD-214, is the state of Minnesota; or 49.30 (2) is currently serving in the United States armed forces, 49.31 and has a certificate from an appropriate service authority 49.32 stating that the person: (i) served in active duty in the 49.33 United States armed forces at any time during the eligibility 49.34 period for the bonus; and (ii) had Minnesota as the home of 49.35 record at the time of entry into active duty in the United 49.36 States armed forces. 50.1 (j) "Service connected" means caused by an injury or 50.2 disease incurred or aggravated while on active duty, as 50.3 determined by the United States department of veterans affairs. 50.4 (k) "Veteran" has the meaning given in section 197.447, and 50.5 also includes: 50.6 (1) a person who is providing honorable service on active 50.7 duty in the United States armed forces and has not been 50.8 separated or discharged; or 50.9 (2) a member of a reserve component of the armed forces of 50.10 the United States, including the national guard, who was ordered 50.11 to active duty under United States Code, title 10, section 673b, 50.12 during the eligibility period for the bonus and who was deployed 50.13 to a duty station outside the state of Minnesota, as verified by 50.14 the appropriate service authority. An applicant's DD-214 form 50.15 showing award of the Southwest Asia service medal during the 50.16 eligibility period for the bonus will suffice as verification. 50.17 "Veteran" does not include a member of the national guard 50.18 or the reserve components of the United States armed forces 50.19 ordered to active duty for the sole purpose of training. 50.20 Subd. 2. [BONUS AMOUNT.] (a) For a resident veteran who 50.21 provided honorable service in the United States armed forces at 50.22 any time during the eligibility period for the bonus, the bonus 50.23 amount is: 50.24 (1) $300, if the veteran did not receive the Southwest Asia 50.25 service medal during the eligibility period for the bonus; 50.26 (2) $600, if the veteran received the Southwest Asia 50.27 service medal during the eligibility period for the bonus; or 50.28 (3) $2,000, if the veteran was eligible for the Southwest 50.29 Asia service medal during the eligibility period for the bonus, 50.30 and died during that time period as a direct result of a service 50.31 connected injury, disease, or condition. 50.32 (b) In the case of a deceased veteran, the commissioner 50.33 shall pay the bonus to the veteran's beneficiary. 50.34 (c) No payment may be made to a veteran or beneficiary who 50.35 has received a similar bonus payment from another state. 50.36 Subd. 3. [APPLICATION PROCESS.] A veteran, or the 51.1 beneficiary of a veteran, entitled to a bonus may make 51.2 application for a bonus to the department on a form prescribed 51.3 by the commissioner and verified by the applicant. If the 51.4 veteran is incompetent or the veteran's beneficiary is a minor 51.5 or incompetent, the application must be made by the person's 51.6 guardian or conservator. An application must be accompanied by 51.7 evidence of residency, honorable service, active duty service 51.8 during the eligibility period for the bonus, and any other 51.9 information the commissioner requires. The applicant must 51.10 indicate on the application form the bonus amount for which the 51.11 applicant expects to be eligible. 51.12 If the information provided in the application is 51.13 incomplete, the department must notify the applicant in writing 51.14 of that fact and must identify the items of information needed 51.15 to make a determination. After notifying an applicant that the 51.16 person's application is incomplete, the department shall hold 51.17 the application open while awaiting further information from the 51.18 applicant, and the applicant may submit that information without 51.19 filing an appeal and request for review. 51.20 Subd. 4. [BONUS DETERMINATION, APPEAL PROCESS, AND 51.21 PAYMENT.] (a) Except as provided in paragraphs (b) to (d), the 51.22 commissioner may not make a bonus payment to any applicant. 51.23 (b) Upon submission of proof to the department that an 51.24 applicant is entitled to payment under this section, the 51.25 department shall determine the amount of the bonus for which the 51.26 applicant is eligible. If the department's determination of the 51.27 bonus amount is in agreement with, or is greater than, the 51.28 amount requested by the applicant in the application, the 51.29 commissioner shall pay to the applicant the bonus amount, as 51.30 determined by the department. 51.31 (c) If the department determines that the bonus amount for 51.32 an applicant is less than the amount requested in the 51.33 application, the department shall notify the applicant in 51.34 writing of its determination, and include with that notification 51.35 a form that the applicant may use to accept the department's 51.36 determination and thereby waive the right to review of that 52.1 determination. A filing by the applicant of the acceptance and 52.2 waiver form with the department constitutes a waiver by the 52.3 applicant of the right to review. Upon receipt of such 52.4 acceptance and waiver from the applicant, the department shall 52.5 pay to the applicant the bonus amount, as determined by the 52.6 department. Unless an appeal is filed with the commissioner by 52.7 an applicant in accordance with paragraph (d), all orders, 52.8 decisions, and acts of the department with reference to the 52.9 claim of the applicant are final and conclusive upon the 52.10 applicant. 52.11 (d) Upon notification that the department's determination 52.12 of the bonus amount is less than the bonus amount requested by 52.13 the applicant in the application, the applicant may appeal the 52.14 department's determination and request a review by the 52.15 commissioner. The appeal and request for review must be made in 52.16 writing within 60 days of the department's mailing of its 52.17 determination. Following receipt by the department of an 52.18 applicant's appeal and request for review by the commissioner, 52.19 no payment shall be made by the department to the applicant 52.20 until the review has been completed. For such review, the 52.21 applicant may submit additional information to supplement the 52.22 information provided in the application, and may request that 52.23 the review be conducted either: (1) through written 52.24 correspondence; or (2) in person with the commissioner. The 52.25 commissioner shall act upon an appeal and request for review 52.26 within seven working days of its receipt by the department. 52.27 Following review by the commissioner of the application and any 52.28 additional information submitted or presented by the applicant, 52.29 the commissioner's determination is final. Any expenses 52.30 incurred by the applicant as the result of the applicant's 52.31 appeal and request for review are the obligation of the 52.32 applicant. 52.33 Subd. 5. [NOTICES.] Notices and correspondence to an 52.34 applicant must be directed to the applicant by mail at the 52.35 address listed in the application. Notices and correspondence 52.36 to the commissioner must be addressed to the commissioner's 53.1 office in St. Paul. 53.2 Subd. 6. [POWERS AND DUTIES OF THE COMMISSIONER.] (a) The 53.3 commissioner shall determine who is the beneficiary of a 53.4 deceased veteran and determine who is the person who has assumed 53.5 the responsibility for the care of any minor or incompetent. 53.6 (b) The commissioner may employ persons and may incur other 53.7 expenses necessary to administer this section. 53.8 Subd. 7. [TAX EXEMPT GIFTS.] The bonus payments provided 53.9 for by this section are gifts or gratuities given as a token of 53.10 appreciation to eligible veterans and are not compensation for 53.11 services rendered. The payments are exempt from state taxation. 53.12 Subd. 8. [NONASSIGNABLE; EXCEPTED FROM PROCESS.] A claim 53.13 for payment under this section is not assignable or subject to 53.14 garnishment, attachment, or levy of execution. 53.15 Subd. 9. [PENALTIES.] A person who knowingly makes a false 53.16 statement relating to a material fact in support of a claim for 53.17 a bonus under this section is guilty of a misdemeanor. 53.18 Subd. 10. [DEADLINE FOR APPLICATIONS.] The application 53.19 period for the bonus program established in this section shall 53.20 be November 1, 1997, to June 30, 1999. The department may not 53.21 receive or accept new applications after June 30, 1999. 53.22 Sec. 43. Minnesota Statutes 1996, section 327.33, 53.23 subdivision 2, is amended to read: 53.24 Subd. 2. [FEES.] The commissioner shall by rule establish 53.25 reasonable fees for seals, installation seals and inspections 53.26 which are sufficient to cover all costs incurred in the 53.27 administration of sections 327.31 to 327.35. The commissioner 53.28 shall also establish by rule a monitoring inspection fee in an 53.29 amount that will comply with the secretary's fee distribution 53.30 program. This monitoring inspection fee shall be an amount paid 53.31 by the manufacturer for each manufactured home produced in 53.32 Minnesota. The monitoring inspection fee shall be paid by the 53.33 manufacturer to the secretary. The rules of the fee 53.34 distribution program require the secretary to distribute the 53.35 fees collected from all manufactured home manufacturers among 53.36 states approved and conditionally approved based on the number 54.1 of new manufactured homes whose first location after leaving the 54.2 manufacturer is on the premises of a distributor, dealer or 54.3 purchaser in that state. All fees receivedmoney collected by 54.4 the commissioner shall be deposited in the state treasury and54.5 credited to the general fundthrough fees prescribed by sections 54.6 327.31 to 327.36 shall be deposited in the state government 54.7 special revenue fund and is appropriated to the commissioner for 54.8 the purpose of administering and enforcing the manufactured home 54.9 building code under sections 327.31 to 327.36. 54.10 Sec. 44. Minnesota Statutes 1996, section 327B.04, 54.11 subdivision 7, is amended to read: 54.12 Subd. 7. [FEES; LICENSES; WHEN GRANTED.] Each application 54.13 for a license or license renewal must be accompanied by a fee in 54.14 an amount established by the commissioner by rule pursuant to 54.15 section 327B.10 , which shall be paid into the state treasury and54.16 credited to the general fund. The fees shall be set in an 54.17 amount which over the fiscal biennium will produce revenues 54.18 approximately equal to the expenses which the commissioner 54.19 expects to incur during that fiscal biennium while administering 54.20 and enforcing sections 327B.01 to 327B.12. All money collected 54.21 by the commissioner through fees prescribed in sections 327B.01 54.22 to 327B.12 shall be deposited in the state government special 54.23 revenue fund and is appropriated to the commissioner for 54.24 purposes of administering and enforcing the provisions of this 54.25 chapter. The commissioner shall grant or deny a license 54.26 application or a renewal application within 60 days of its 54.27 filing. If the license is granted, the commissioner shall 54.28 license the applicant as a dealer or manufacturer for the 54.29 remainder of the calendar year. Upon application by the 54.30 licensee, the commissioner shall renew the license for a two 54.31 year period, if: 54.32 (a) the renewal application satisfies the requirements of 54.33 subdivisions 3 and 4; 54.34 (b) the renewal applicant has made all listings, 54.35 registrations, notices and reports required by the commissioner 54.36 during the preceding year; and 55.1 (c) the renewal applicant has paid all fees owed pursuant 55.2 to sections 327B.01 to 327B.12 and all taxes, arrearages, and 55.3 penalties owed to the state. 55.4 Sec. 45. Minnesota Statutes 1996, section 349.163, 55.5 subdivision 4, is amended to read: 55.6 Subd. 4. [INSPECTION OF MANUFACTURERS.] Employees of the 55.7 board and the division of gambling enforcement may inspect the 55.8 books, records, inventory, and business premises of a licensed 55.9 manufacturer without notice during the normal business hours of 55.10 the manufacturer. The board may charge a manufacturer for the 55.11 actual cost of conducting scheduled or unscheduled inspections 55.12 of the manufacturer's facilities, where the amount charged to 55.13 the manufacturer for such inspections in any year does not 55.14 exceed $7,500. The board shall deposit in a separate account in 55.15 the state treasury all money received as reimbursement for the 55.16 costs of inspections. Until July 1, 1999, money in the account 55.17 is appropriated to the board to pay the costs of the inspections. 55.18 Sec. 46. Minnesota Statutes 1996, section 356.865, 55.19 subdivision 3, is amended to read: 55.20 Subd. 3. [ COSTSTATE APPROPRIATION.] The cost of the55.21 payments made under this section is the responsibility of the55.22 state.Payments under this section are the responsibility of 55.23 the Minneapolis employees retirement fund. A separate state aid 55.24 is provided toward the level dollar amortized cost of the 55.25 payments. For state fiscal years 1992 to 2001 inclusive, there 55.26 is appropriated annually $550,000 from the general fund to the 55.27 commissioner of finance to be added, in quarterly installments, 55.28 to the annual state contribution amount determined under section 55.29 422A.101, subdivision 3. After fiscal year 2001, any difference 55.30 between the cumulative benefit amounts actually paid under this 55.31 section after fiscal year 1991 and the amounts paid to the 55.32 retirement fund by the state under this subdivision plus 55.33 investment earnings on the aid shall be included by the 55.34 retirement fund board and the actuary retained by the 55.35 legislative commission on pensions and retirement in determining 55.36 financial requirements of the fund and contributions under 56.1 section 422A.101. 56.2 Sec. 47. Minnesota Statutes 1996, section 363.073, 56.3 subdivision 1, is amended to read: 56.4 Subdivision 1. [SCOPE OF APPLICATION.] No department or 56.5 agency of the state shall accept any bid or proposal for a 56.6 contract or agreement or execute any contract or agreement for 56.7 goods or services in excess of $50,000 with any business having 56.8 more than 20 full-time employees, either within or outside this 56.9 state, on a single working day during the previous 12 months, 56.10 unless the firm or business has an affirmative action plan for 56.11 the employment of minority persons, women, and the disabled that 56.12 has been approved by the commissioner of human rights. Receipt 56.13 of a certificate of compliance issued by the commissioner shall 56.14 signify that a firm or business has an affirmative action plan 56.15 that has been approved by the commissioner. A certificate shall 56.16 be valid for a period of two years. A municipality as defined 56.17 in section 466.01, subdivision 1, that receives state money for 56.18 any reason is encouraged to prepare and implement an affirmative 56.19 action plan for the employment of minority persons, women, and 56.20 the disabled and submit the plan to the commissioner of human 56.21 rights. 56.22 Sec. 48. Minnesota Statutes 1996, section 422A.101, 56.23 subdivision 3, is amended to read: 56.24 Subd. 3. [STATE CONTRIBUTIONS.] (a) Subject to the 56.25 limitation set forth in paragraph (c), the state shall pay to 56.26 the Minneapolis employees retirement fund annually an amount 56.27 equal to the amount calculated under paragraph (b). 56.28 (b) The payment amount is an amount equal to the financial 56.29 requirements of the Minneapolis employees retirement fund 56.30 reported in the actuarial valuation of the fund prepared by the 56.31 commission-retained actuary pursuant to section 356.215 for the 56.32 most recent year but based on a target date for full 56.33 amortization of the unfunded actuarial accrued liabilities by 56.34 June 30, 2020, less the amount of employee contributions 56.35 required pursuant to section 422A.10, and the amount of employer 56.36 contributions required pursuant to subdivisions 1a, 2, and 2a. 57.1 Payments shall be made in four equal installments, occurring on 57.2 March 15, July 15, September 15, and November 15 annually. 57.3 (c) The annual state contribution under this subdivision 57.4 may not exceed $10,455,000 through fiscal year 1998 and 57.5 $9,000,000 beginning in fiscal year 1999, plus the cost of the 57.6 annual supplemental benefit determined under section 356.865. 57.7 (b)(d) If the amount determined under paragraph (a)(b) 57.8 exceeds the limitation on the state payment in paragraph57.9 (a)$11,910,000, the excess must be allocated to and paid to the 57.10 fund by the employers identified in subdivisions 1a and 2, other 57.11 than units of metropolitan government. Each employer's share of 57.12 the excess is proportionate to the employer's share of the 57.13 fund's unfunded actuarial accrued liability as disclosed in the 57.14 annual actuarial valuation prepared by the actuary retained by 57.15 the legislative commission on pensions and retirement compared 57.16 to the total unfunded actuarial accrued liability attributed to 57.17 all employers identified in subdivisions 1a and 2, other than 57.18 units of metropolitan government. Payments must be made in 57.19 equal installments as set forth in paragraph (a)(b). 57.20 Sec. 49. [465.803] [REPAYMENT OF GRANTS.] 57.21 Subdivision 1. [REPAYMENT PROCEDURES.] Without regard to 57.22 whether a grant recipient offered to repay the grant in its 57.23 original application, as part of a grant awarded under section 57.24 465.798, 465.799, or 465.801, the board may require the grant 57.25 recipient to repay all or part of the grant if the board 57.26 determines the project funded by the grant resulted in an actual 57.27 savings for the participating local units of government. The 57.28 grant agreement must specify how the savings are to be 57.29 determined and the period of time over which the savings will be 57.30 used to calculate a repayment requirement. The repayment of 57.31 grant money under this section may not exceed an amount equal to 57.32 the total savings achieved through the implementation of the 57.33 project multiplied by the total amount of the grant divided by 57.34 the total budget for the project and may not exceed the total 57.35 amount of the original grant. 57.36 Subd. 2. [BONUS POINTS.] In addition to the points awarded 58.1 to competitive grant applications under section 465.802, the 58.2 board shall award additional points to any applicant that 58.3 projects a potential cost savings through the implementation of 58.4 its project and offers to repay the grant money under the 58.5 formula in subdivision 1. 58.6 Subd. 3. [USE OF REPAYMENT REVENUE.] All grant money 58.7 repaid to the board under this section is appropriated to the 58.8 board for additional grants authorized by sections 465.798, 58.9 465.799, and 465.801. 58.10 Sec. 50. Minnesota Statutes 1996, section 475A.06, 58.11 subdivision 7, is amended to read: 58.12 Subd. 7. [AUTHORITY FOR BONDS; LIMIT; APPROPRIATION 58.13 PURPOSE; PROCEDURAL SOURCES.] The commissioner of finance is 58.14 authorized to sell and issue Minnesota state municipal aid bonds 58.15 in an aggregate principal amount not to exceed 58.16 $4,330,000$1,192,295, the proceeds of which, except as provided 58.17 in subdivision 1, are appropriated to the state municipal bond 58.18 guaranty fund for the purpose of providing funds to be loaned to 58.19 municipalities for the acquisition and betterment of public 58.20 lands and buildings and other public improvements of a capital 58.21 nature, when needed to pay the principal of or interest on bonds 58.22 issued for this purpose or bonds issued to refund such 58.23 guaranteed bonds, in accordance with the provisions of sections 58.24 475A.01 to 475A.06. The bonds shall be sold, issued, and 58.25 secured as provided in subdivisions 1 to 6 and in Article XI, 58.26 Section 7 of the Constitution. 58.27 Sec. 51. [TEEN COURT PROGRAM.] 58.28 Subdivision 1. [DEFINITIONS.] For purposes of this 58.29 section, the following terms have the meanings given. 58.30 (a) "Minor offense" means: 58.31 (1) a juvenile petty offense; 58.32 (2) a petty misdemeanor; or 58.33 (3) any misdemeanor, other than a misdemeanor-level 58.34 violation of Minnesota Statutes, section 588.20 (contempt of 58.35 court), 609.224 (fifth degree assault), 609.2242 (domestic 58.36 assault), 609.324 (prostitution and related crimes), 609.563 59.1 (arson in the third degree), 609.576 (negligent fires, dangerous 59.2 smoking), 609.66 (dangerous weapons), or 617.23 (indecent 59.3 exposure), a major traffic offense, or an adult traffic offense, 59.4 as defined in Minnesota Statutes, section 260.193. 59.5 (b) "Teen" means an individual who is at least 10 years old 59.6 but less than 18 years old. 59.7 (c) "Teen court" and "teen court program" mean an 59.8 alternative procedure under which a local law enforcement 59.9 agency, county attorney, school, or probation agency may divert 59.10 from the juvenile court system a teen who allegedly has 59.11 committed a minor offense, on condition that the teen 59.12 voluntarily appear before and receive a disposition from a jury 59.13 of the teen's peers and successfully complete the terms and 59.14 conditions of the disposition. These programs also may be used 59.15 by a school as an alternative to formal school disciplinary 59.16 proceedings. 59.17 Subd. 2. [SUPREME COURT RULES.] The supreme court is 59.18 requested to adopt rules and procedures to govern the teen court 59.19 program that are consistent with this section. 59.20 Subd. 3. [APPLICATION TO ESTABLISH TEEN COURT.] (a) Any 59.21 group of two or more adult sponsors may apply to the office of 59.22 strategic and long-range planning to establish a teen court. 59.23 These sponsors must be affiliated with an agency, entity, or 59.24 other organized program or group. 59.25 (b) An application to establish a teen court must include: 59.26 (1) the names, addresses, and telephone numbers of two or 59.27 more adult sponsors and a description of the entity, agency, or 59.28 other organized program or group with which the adult sponsors 59.29 are affiliated; 59.30 (2) the names, addresses, and telephone numbers of all 59.31 teens who have signed letters of commitment to participate 59.32 voluntarily as teen court members in the teen court program; 59.33 (3) a certification from the adult sponsors that adequate 59.34 adult sponsorship exists and that there are a sufficient number 59.35 of teen volunteers to make the functioning of the teen court 59.36 feasible and meaningful; and 60.1 (4) a letter of support from the judicial district court 60.2 administrator agreeing to help the teen court track the 60.3 recidivism rates of teen court participants. 60.4 Subd. 4. [REFERRAL TO TEEN COURT PROGRAM.] Once the teen 60.5 court program has been established, it may receive referrals for 60.6 eligible teens from local law enforcement, county attorneys, 60.7 school officials, and probation agencies. The process of 60.8 referral is to be established by the individual teen court 60.9 program, in coordination with other established teen court 60.10 programs in the judicial district. 60.11 Subd. 5. [FEE.] The teen court program may require a teen 60.12 to pay a nonrefundable fee to cover the costs of administering 60.13 the program. This fee must be reduced or waived for a 60.14 participant who does not have the ability to pay the fee. 60.15 Subd. 6. [TEEN COURT PROGRAM COMPONENTS.] (a) Before a 60.16 teen participates in the teen court program, a teen court 60.17 sponsor or the referring source must: 60.18 (1) contact the victim, if any, of the offense, or make a 60.19 good faith attempt to contact the victim, if any, and the victim 60.20 must be advised that the victim may participate in the teen 60.21 court proceedings; and 60.22 (2) at least seven days before the teen participates in the 60.23 program, provide to the county attorney of the teen's residence 60.24 the teen's name, date of birth, and residential address and a 60.25 description of the offense. 60.26 (b) Before a teen court disposes of a case, it must 60.27 establish a range of dispositional alternatives for offenses 60.28 that is appropriate to the teen court's community. These 60.29 dispositions may include the following: 60.30 (1) community service; 60.31 (2) mandatory participation in appropriate counseling, 60.32 appropriate treatment, law-related educational classes, or other 60.33 educational programs; 60.34 (3) a requirement that the teen defendant participate as a 60.35 juror in future proceedings before the teen court; 60.36 (4) restitution, where appropriate; and 61.1 (5) a fine, not to exceed the amount permitted in Minnesota 61.2 Statutes, section 260.195. The fine permitted in Minnesota 61.3 Statutes, section 260.185, may only be imposed for misdemeanor 61.4 level offenses. 61.5 The teen court does not have the power to place a teen 61.6 outside the home. 61.7 (c) Except as provided in paragraph (d), the teen court 61.8 program may be used only where: 61.9 (1) the teen acknowledges responsibility for the offense; 61.10 (2) the teen voluntarily agrees to participate in the teen 61.11 court program; 61.12 (3) the judge of the teen court is a judge or an attorney 61.13 admitted to practice law in this state; 61.14 (4) the teen's parent or legal guardian accompanies the 61.15 teen in all teen court proceedings; 61.16 (5) the county attorney does not notify the teen court 61.17 before the teen's participation that the offense will be handled 61.18 in juvenile court or in a pretrial diversion program established 61.19 under Minnesota Statutes, section 388.24; and 61.20 (6) the teen court program has established a training 61.21 component for teen and adult volunteers. 61.22 (d) When a teen court operates as an alternative to a 61.23 school disciplinary policy, the teen's parent or legal guardian 61.24 must be notified of the teen's involvement in the program, 61.25 according to the school district's disciplinary policy. The 61.26 teen's parent or legal guardian does not need to accompany the 61.27 teen in teen court proceedings. 61.28 (e) The teen court shall notify the referring source as 61.29 soon as possible upon discovery that the teen has failed to 61.30 comply with any part of the disposition imposed under paragraph 61.31 (b). Either juvenile court proceedings or formal school 61.32 disciplinary proceedings, where applicable, or both, may be 61.33 commenced against a teen who fails to comply with the 61.34 disposition under paragraph (b). 61.35 Subd. 7. [EVALUATION AND REPORTS.] (a) The results of all 61.36 proceedings in teen court must be reported to the office of 62.1 strategic and long-range planning on a form provided by that 62.2 office. The teen court must submit the report no later than 62.3 July 15 for all activity during the first six months of the 62.4 calendar year and by January 15 for all activity during the last 62.5 six months of the preceding calendar year. A copy of this 62.6 report also must be provided to the county attorney of the 62.7 county in which the teen court operates. Each report must 62.8 include the following: 62.9 (1) the number of cases handled by the teen court, 62.10 including a breakdown of the number of cases from each referring 62.11 agency; 62.12 (2) a list of the offenses for which the teen court imposed 62.13 a disposition, including a breakdown showing the number of teen 62.14 court participants committing each type of offense; 62.15 (3) a list of the dispositions imposed by the teen court, 62.16 including a breakdown showing the number of times each 62.17 particular disposition was imposed; and 62.18 (4) information on the cases that were referred back to the 62.19 referring agency under subdivision 6, paragraph (e). 62.20 (b) Each teen court shall report to the office of strategic 62.21 and long-range planning by June 30 each year on its progress in 62.22 achieving outcome measures and indicators. This report must 62.23 include an analysis of recidivism rates for teen court 62.24 participants, based upon a method for measuring these rates as 62.25 determined by the office of strategic and long-range planning. 62.26 (c) The office of strategic and long-range planning shall 62.27 assist teen court programs in developing outcome measures and 62.28 indicators. These outcome measures and indicators must be 62.29 established before any teen court begins to impose dispositions 62.30 and must allow for both evaluation of each teen court program 62.31 and for statewide evaluation of the teen court program. 62.32 Subd. 8. [ADMINISTRATION.] The office of strategic and 62.33 long-range planning has authority to administer funds to teen 62.34 court programs that comply with this section and the supreme 62.35 court rules adopted under this section. The office of strategic 62.36 and long-range planning may receive and administer public and 63.1 private funds for the purpose of this section. 63.2 Sec. 52. [YOUTH SPORTS PROGRAMS; CRITERIA.] 63.3 The Minnesota amateur sports commission shall develop a 63.4 plan to promote recreational programs for youth. The proposals 63.5 must be for programs for which there is a demonstrated shortage 63.6 of access, based on needs of youth. The plan must be based on 63.7 the criteria in this section. 63.8 (a) The programs must be intended primarily for use for 63.9 youth sports in the entire community and not for school athletic 63.10 functions. 63.11 (b) Programs must emphasize access for low-income youth and 63.12 for other youth who would not otherwise have access to the 63.13 programs. 63.14 (c) Proposals must contain a plan to ensure equitable use 63.15 for youth of each gender. 63.16 (d) To the extent possible, program grants must be 63.17 dispersed equitably, must be located to maximize potential for 63.18 full utilization, and must accommodate noncompetitive family and 63.19 community use for all ages in addition to use for competitive 63.20 youth sports. 63.21 (e) To the extent possible, 50 percent of all grants must 63.22 be awarded to communities in greater Minnesota. 63.23 Sec. 53. [ADVISORY COUNCIL ON ECONOMIC FUTURE.] 63.24 (a) The director of the office of strategic and long-range 63.25 planning shall convene an advisory council on Minnesota's 63.26 economic future to: 63.27 (1) agree on a set of strategic goals to guide the state's 63.28 development through the year 2010; 63.29 (2) develop a set of indicators to measure progress toward 63.30 those goals; and 63.31 (3) develop a mechanism to renew and update strategies and 63.32 goals on an ongoing basis and monitor and report results to the 63.33 people of this state. 63.34 (b) The advisory council shall consist of 13 members. Ten 63.35 legislators shall be appointed as follows: three by the speaker 63.36 of the house of representatives, two by the minority leader of 64.1 the house of representatives, and five by the subcommittee on 64.2 committees of the committee on rules and administration of the 64.3 senate, two of whom must be members of the minority party or an 64.4 independent. The other three members are the director of 64.5 strategic and long-range planning, the commissioner of finance, 64.6 and the commissioner of trade and economic development. The 64.7 governor may designate other commissioners or agency heads to 64.8 serve as nonvoting members. The speaker of the house and the 64.9 subcommittee on committees of the senate may appoint additional 64.10 legislators to serve as nonvoting members. The advisory council 64.11 may consult with knowledgeable persons from the public and 64.12 private sectors. 64.13 (c) The advisory council shall report its findings and 64.14 recommendations to the legislature by February 15, 1998. The 64.15 advisory council expires upon submission of its report. 64.16 Sec. 54. [ADVISORY COUNCIL ON LOCAL GOVERNMENT.] 64.17 Subdivision 1. [ESTABLISHED.] An advisory council on the 64.18 roles and responsibilities of local governments is established. 64.19 Subd. 2. [DUTIES.] The advisory council shall study and 64.20 make recommendations to the legislature by July 1, 1998, on the 64.21 appropriate roles and responsibilities of local and regional 64.22 government in the metropolitan area, as defined in Minnesota 64.23 Statutes, section 473.121, subdivision 2. The advisory council 64.24 shall examine: 64.25 (1) what services should be provided and what functions 64.26 fulfilled by local or regional government; 64.27 (2) what level of government is appropriate for the 64.28 efficient, effective, and equitable delivery of these services 64.29 and functions; 64.30 (3) what powers are needed by local and regional government 64.31 to deliver the services; and 64.32 (4) what governance structures will meet the identified 64.33 roles and responsibilities of local and regional government and 64.34 be responsive to, understandable by, and accountable to citizens. 64.35 The advisory council may consider alternatives to the 64.36 existing governance structures in order to fulfill the 65.1 requirements of this section. 65.2 Subd. 3. [MEMBERSHIP.] The advisory council consists of 25 65.3 members, who serve at the pleasure of the appointing authority, 65.4 as follows: 65.5 (1) four representatives of cities, appointed by the 65.6 association of metropolitan municipalities; 65.7 (2) two representatives of towns, appointed by the 65.8 Minnesota association of townships; 65.9 (3) four representatives of counties, appointed by the 65.10 association of Minnesota counties; 65.11 (4) two representatives of school districts, appointed by 65.12 the Minnesota school boards association; 65.13 (5) eight legislators; four house members, of whom two are 65.14 members of the majority caucus appointed by the speaker of the 65.15 house of representatives and two are members of the minority 65.16 caucus appointed by the house minority leader; and four senate 65.17 members, of whom two are members of the majority caucus and two 65.18 are members of the minority caucus, appointed by the 65.19 subcommittee on committees of the committee on rules and 65.20 administration; 65.21 (6) the chair of the metropolitan council, or the chair's 65.22 designee; and 65.23 (7) four public members, appointed by the governor. 65.24 Members must be appointed as soon as practicable after the 65.25 effective date of this section. 65.26 Subd. 4. [FIRST MEETING; SELECTION OF A CHAIR.] A member 65.27 appointed by the association of metropolitan municipalities 65.28 shall be selected by the association to convene the first 65.29 meeting of the advisory council. At the first meeting, the 65.30 advisory council shall select a member to serve as chair. 65.31 Subd. 5. [ADMINISTRATIVE; STAFF ASSISTANCE.] The office of 65.32 strategic and long-range planning shall provide administrative 65.33 and staff assistance to the advisory council. 65.34 Subd. 6. [EXPIRATION.] The advisory council established 65.35 under subdivision 1 expires June 30, 1999. 65.36 Sec. 55. [CORPORATE SUBSIDY REFORM COMMISSION.] 66.1 Subdivision 1. [ESTABLISHMENT.] (a) A bipartisan corporate 66.2 subsidy reform commission is created. 66.3 (b) The commission shall evaluate selected subsidy programs 66.4 and tax laws for the following: 66.5 (1) public purpose; including jobs, wages, and other 66.6 economic development benefits; 66.7 (2) criterion for award; and 66.8 (3) accountability and enforcement mechanisms used to 66.9 facilitate the achievement of the public purpose. 66.10 (c) The commission shall examine whether these subsidy 66.11 programs or tax laws impede competition or provide preferential 66.12 treatment to private enterprises. 66.13 Subd. 2. [SCOPE.] The commission shall review subsidy 66.14 programs and tax laws including: 66.15 (1) tax expenditures and other tax concessions; 66.16 (2) direct spending and loans; 66.17 (3) public spending that indirectly affects the economic 66.18 development of the region; and 66.19 (4) regulation of private activity for the purpose of 66.20 economic development. 66.21 Subd. 3. [REPORT.] The commission shall submit a report to 66.22 the legislature by December 15, 1997. Included within the 66.23 report, the commission may suggest changes in the public 66.24 purpose, criterion for award, administration, accountability and 66.25 enforcement mechanisms, and funding of the subsidy programs. 66.26 The commission may also suggest changes in the applicable tax 66.27 laws. 66.28 Subd. 4. [MEMBERSHIP.] The commission consists of 19 66.29 members. The speaker of the house shall appoint five members, 66.30 including at least two members of the minority caucus. The 66.31 senate subcommittee on committees shall appoint five members, 66.32 including at least two members of the minority caucus. The 66.33 commissioner of trade and economic development and the 66.34 commissioner of revenue shall each appoint one member from their 66.35 respective departments. These members shall appoint seven 66.36 members from the general public, of which at most two members 67.1 directly receive some type of public assistance described in 67.2 subdivision 2. 67.3 Subd. 5. [STAFF ASSISTANCE.] House and senate employees 67.4 must staff the commission. 67.5 Subd. 6. [NOTIFICATION.] In accordance with Minnesota 67.6 Statutes, section 471.705, the public may attend any meeting 67.7 held by the commission. 67.8 Subd. 7. [EXPIRATION.] The commission established under 67.9 subdivision 1 expires July 1, 1998. 67.10 Sec. 56. [INFORMATION POLICY TASK FORCE.] 67.11 Subdivision 1. [CREATION.] An information policy task 67.12 force is created to study and make recommendations regarding 67.13 Minnesota law on public information policy, including government 67.14 data practices and information technology issues. The task 67.15 force consists of: 67.16 (1) two members of the senate appointed by the 67.17 subcommittees on committees of the committee on rules and 67.18 administration; 67.19 (2) two members of the house of representatives appointed 67.20 by the speaker; 67.21 (3) four members appointed by the governor; 67.22 (4) two nonlegislative members appointed by the 67.23 subcommittee on committees of the committee on rules and 67.24 administration of the senate; and 67.25 (5) two nonlegislative members appointed by the speaker of 67.26 the house of representatives. 67.27 At least one member from each legislative body must be a 67.28 member of the majority party and at least one member from each 67.29 body must be a member of the minority party or an independent. 67.30 Subd. 2. [DUTIES; REPORT.] The task force shall study: 67.31 (1) the content and organization of government data 67.32 practices statutes in Minnesota Statutes, chapter 13, and 67.33 related statutes dealing with access to government data, fair 67.34 information practices, and privacy; 67.35 (2) issues related to surveillance and other forms of 67.36 information technology, including the impact of technology on 68.1 data practices and privacy; 68.2 (3) procedures and structures for developing and 68.3 implementing a coherent and coordinated approach to public 68.4 information policy; 68.5 (4) approaches to information policy in other states and 68.6 foreign jurisdictions; and 68.7 (5) other information policy issues identified by the task 68.8 force. 68.9 In its study of statutes under clause (1), the task force 68.10 shall include an evaluation to determine whether any statutes 68.11 are inconsistent or obsolete. 68.12 The task force shall submit a progress report to the 68.13 legislature by February 1, 1998, and a final report of its 68.14 findings and recommendations, including any proposed 68.15 legislation, to the legislature by January 15, 1999. 68.16 Subd. 3. [SUPPORT.] The commissioner of administration and 68.17 the director of the office of strategic and long-range planning 68.18 shall provide staff and other support services to the task force. 68.19 Legislative support to the task force must come from existing 68.20 resources. The executive director of the Minnesota office of 68.21 technology or the executive director's designee shall assist in 68.22 the task force's activities. 68.23 Subd. 4. [COMPENSATION.] When authorized by the task 68.24 force, members of the task force who are not legislators or 68.25 full-time employees of the state or a political subdivision 68.26 shall be compensated at the rate of $55 a day spent on task 68.27 force activities, plus expenses in the same manner and amount as 68.28 authorized by the commissioner's plan adopted under Minnesota 68.29 Statutes, section 43A.18, subdivision 2, and child care expenses 68.30 that would not have been incurred if the member had not attended 68.31 the task force meeting. A member who is a full-time employee of 68.32 the state or a political subdivision may not receive the daily 68.33 payment, but may suffer no loss in compensation or benefits from 68.34 the state or the political subdivision as a result of service on 68.35 the task force. A member who is a full-time employee of the 68.36 state or a political subdivision may receive the expenses 69.1 provided for in this subdivision unless the expenses are 69.2 reimbursed by another source. A member who is an employee of 69.3 the state or a political subdivision may be reimbursed for child 69.4 care expenses only for time spent on task force activities that 69.5 are outside their normal working hours. 69.6 Subd. 5. [EXPIRATION.] The task force expires upon 69.7 submission of its final report to the legislature under 69.8 subdivision 2. 69.9 Sec. 57. [STUDY OF SCHOOL FUND LAND MANAGEMENT.] 69.10 If directed by the legislative audit commission, the 69.11 legislative auditor shall conduct the studies in this section. 69.12 The legislative auditor shall conduct a study to determine 69.13 whether the administrative costs expended by the department of 69.14 natural resources to manage permanent school fund land reflect 69.15 the actual cost of managing the permanent school fund land. The 69.16 study shall also encompass investment policies to maximize 69.17 returns to the fund. The auditor shall also study whether 69.18 another unit of government could manage the permanent school 69.19 fund land more cost-efficiently. The auditor shall report to 69.20 the permanent school fund advisory committee by January 15, 1998. 69.21 Sec. 58. [AGENCY EXAMINATION.] 69.22 During the interim between the 1997 and 1998 regular 69.23 sessions, the governmental operations budget division of the 69.24 senate shall conduct a thorough review of the operation and 69.25 financing of the following state agencies: the departments of 69.26 administration, finance, and revenue; the board of the arts; and 69.27 the Minnesota amateur sports commission. The agencies shall 69.28 make their books, records, documents, accounting procedures, and 69.29 practices available for examination by the division and division 69.30 staff. Agency personnel shall assist the division and division 69.31 staff in developing a better understanding of how the agencies 69.32 operate. 69.33 Sec. 59. [REVIEW OF OBSOLETE RULES AND STUDY OF 69.34 OUTCOME-BASED REGULATION.] 69.35 The senate committee on governmental operations and 69.36 veterans and the house committee on governmental operations, in 70.1 cooperation with the affected state agencies, shall review 70.2 Minnesota Rules and report to the legislature by January 15, 70.3 1998, any rules that the committees find to be obsolete, 70.4 unnecessary, or duplicative of other state or federal rules or 70.5 statutes. The report must include any necessary legislation the 70.6 committees propose to eliminate the rules or correct the 70.7 duplication. In addition, the committee should complete a study 70.8 on whether to require state agencies to implement outcome-based 70.9 regulatory programs whenever feasible. 70.10 Sec. 60. [RULE VOID.] 70.11 (a) That portion of Minnesota Rules, part 1350.7300, 70.12 subpart 2, which requires that commercial office space must be 70.13 separated from other areas of the building by floor-to-ceiling 70.14 walls is void. 70.15 (b) The commissioner of administration shall amend 70.16 Minnesota Rules, part 1350.7300, subpart 2, to conform with 70.17 paragraph (a). This amendment may be done in the manner 70.18 specified in Minnesota Statutes, section 14.388, clause (3), or 70.19 may be done the next time the commissioner proposes other 70.20 amendments to rules relating to the state building code or 70.21 manufactured homes. 70.22 Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 70.23 Appointing authorities in state government shall encourage 70.24 each employee to take an unpaid leave of absence for up to 160 70.25 hours during the period ending June 30, 1999. Each appointing 70.26 authority approving such a leave shall allow the employee to 70.27 continue accruing vacation and sick leave, be eligible for paid 70.28 holidays and insurance benefits, accrue seniority, and accrue 70.29 service credit in state retirement plans permitting service 70.30 credits for authorized leaves of absence as if the employee had 70.31 actually been employed during the time of the leave. If the 70.32 leave of absence is for one full pay period or longer, any 70.33 holiday pay shall be included in the first payroll warrant after 70.34 return from the leave of absence. The appointing authority 70.35 shall attempt to grant requests for unpaid leaves of absence 70.36 consistent with the need to continue efficient operation of the 71.1 agency. However, each appointing authority shall retain 71.2 discretion to grant or refuse to grant requests for leaves of 71.3 absence and to schedule and cancel leaves, subject to applicable 71.4 provisions of collective bargaining agreements and compensation 71.5 plans. 71.6 Sec. 62. [BOND SALE AUTHORIZATIONS REDUCED.] 71.7 The bond sale authorizations in the following laws are 71.8 reduced by the amounts indicated: 71.9 (1) Laws 1987, chapter 400, section 25, subdivision 1, is 71.10 reduced by $295,000. 71.11 (2) Laws 1989, chapter 300, article 1, section 23, 71.12 subdivision 1, is reduced by $3,335,000. 71.13 (3) Laws 1990, chapter 610, article 1, section 30, 71.14 subdivision 1, is reduced by $9,280,000. 71.15 (4) Laws 1990, chapter 610, article 1, section 30, 71.16 subdivision 3, is reduced by $165,000. 71.17 (5) Laws 1991, chapter 350, article 1, section 2, 71.18 subdivision 1, is reduced by $48,765,000. 71.19 (6) Laws 1992, chapter 558, section 28, subdivision 1, is 71.20 reduced by $6,590,000. 71.21 (7) Laws 1993, chapter 373, section 19, subdivision 1, is 71.22 reduced by $10,000. 71.23 (8) Laws 1996, chapter 463, section 27, subdivision 1, is 71.24 reduced by $37,285,000. 71.25 Sec. 63. [INSTRUCTION TO REVISOR.] 71.26 In the next editions of Minnesota Statutes and Minnesota 71.27 Rules, the revisor of statutes shall change the term "ethical 71.28 practices board" to "campaign finance and public disclosure 71.29 board" wherever it appears. 71.30 Sec. 64. [REPEALER.] 71.31 (a) Minnesota Statutes 1996, section 138.35, subdivision 3, 71.32 is repealed. 71.33 (b) Minnesota Statutes 1996, sections 10A.21; and 16B.58, 71.34 subdivision 8, are repealed. 71.35 Sec. 65. [EFFECTIVE DATE.] 71.36 Sections 1, 12, 14, 16 to 19, 36, 60, and 64, paragraph 72.1 (b), are effective the day following final enactment. Section 72.2 20 is effective March 1, 1998. Section 51, subdivisions 1 to 3, 72.3 are effective the day following final enactment. Section 51, 72.4 subdivisions 4 to 8, are effective July 1, 1997. 72.5 ARTICLE 3 72.6 INFORMATION TECHNOLOGY 72.7 Section 1. Minnesota Statutes 1996, section 16B.05, 72.8 subdivision 2, is amended to read: 72.9 Subd. 2. [FACSIMILE SIGNATURES AND ELECTRONIC APPROVALS.] 72.10 When authorized by the commissioner, facsimile signatures and, 72.11 electronic approvals, or digital signatures may be used by72.12 personnel of the department of administrationin accordance with 72.13 the commissioner's delegated authority and instructions ,. 72.14 Copies of which shallthe delegated authority and instructions 72.15 must be filed with the commissioner of finance, state treasurer, 72.16 and the secretary of state. A facsimile signature or, 72.17 electronic approval, or digital signature, when used in 72.18 accordance with the commissioner's delegated authority and 72.19 instructions, is as effective as an original signature. 72.20 Sec. 2. [16B.415] [OPERATION OF INFORMATION SYSTEMS.] 72.21 The commissioner, through a division of technology 72.22 management, is responsible for ongoing operations of state 72.23 agency information technology activities. These include records 72.24 management, activities relating to the government data practices 72.25 act, operation of MNet, and activities necessary to make state 72.26 information systems year 2000 compliant. 72.27 Sec. 3. Minnesota Statutes 1996, section 16B.42, 72.28 subdivision 1, is amended to read: 72.29 Subdivision 1. [COMPOSITION.] The intergovernmental 72.30 information systems advisory council is composed of (1) two 72.31 members from each of the following groups: counties outside of 72.32 the seven-county metropolitan area, cities of the second and 72.33 third class outside the metropolitan area, cities of the second 72.34 and third class within the metropolitan area, and cities of the 72.35 fourth class; (2) one member from each of the following groups: 72.36 the metropolitan council, an outstate regional body, counties 73.1 within the metropolitan area, cities of the first class, school 73.2 districts in the metropolitan area, school districts outside the 73.3 metropolitan area, and public libraries; (3) one member each 73.4 appointed by the state departments of children, families, and 73.5 learning, human services, revenue, and economic security, the 73.6 office of strategic and long-range planning, office of 73.7 technology, administration, and the legislative auditor; (4) one 73.8 member from the office of the state auditor, appointed by the 73.9 auditor; (5) the assistant commissioner of administration for73.10 the information policy office; (6)one member appointed by each 73.11 of the following organizations: league of Minnesota cities, 73.12 association of Minnesota counties, Minnesota association of 73.13 township officers, and Minnesota association of school 73.14 administrators; and (7)(6) one member of the house of 73.15 representatives appointed by the speaker and one member of the 73.16 senate appointed by the subcommittee on committees of the 73.17 committee on rules and administration. The legislative members 73.18 appointed under clause (7)(6) are nonvoting members. The 73.19 commissioner of administration shall appoint members under 73.20 clauses (1) and (2). The terms, compensation, and removal of 73.21 the appointed members of the advisory council are as provided in 73.22 section 15.059, but the council does not expire until June 30, 73.23 19971999. 73.24 Sec. 4. Minnesota Statutes 1996, section 16B.465, is 73.25 amended to read: 73.26 16B.465 [ STATEWIDEMINNESOTA NETWORK FOR TELECOMMUNICATIONS 73.27 ACCESS ROUTING SYSTEM("MNET").] 73.28 Subdivision 1. [CREATION.] The statewideMinnesota network 73.29 for telecommunications access routing system, known as "MNet," 73.30 provides voice, data, video, and other telecommunications 73.31 transmission services to state agencies; educational 73.32 institutions, including public schools as defined in section 73.33 120.05, nonpublic, church or religious organization 73.34 schools whichthat provide instruction in compliance with 73.35 sections 120.101 to 120.102, and private colleges; public 73.36 corporations; and state political subdivisions. It is not a 74.1 telephone company for purposes of chapter 237. It shall not 74.2 resell or sublease any services or facilities to nonpublic 74.3 entities except it may serve private schools and colleges. The 74.4 commissioner has the responsibility for planning, development, 74.5 and operations of a statewide telecommunications access routing74.6 systemMNet in order to provide cost-effective 74.7 telecommunications transmission services to systemMNet users. 74.8 Subd. 2. [ADVISORY COUNCIL.] The statewide74.9 telecommunications access and routing systemMNet is managed by 74.10 the commissioner. Subject to section 15.059, subdivisions 1 to 74.11 4, the commissioner shall appoint an advisory council to provide 74.12 advice in implementing and operating a statewide74.13 telecommunications access and routing systemMNet. The council 74.14 shall represent the users of STARSMNet services and shall 74.15 include representatives of higher education, public and private 74.16 schools, state agencies, and political subdivisions. 74.17 Subd. 3. [DUTIES.] The commissioner, after consultation 74.18 with the counciloffice of technology, shall: 74.19 (1) provide voice, data, video, and other 74.20 telecommunications transmission services to the state and to 74.21 political subdivisions through an account in the 74.22 intertechnologies revolving fund; 74.23 (2) manage vendor relationships, network function, and 74.24 capacity planning in order to be responsive to the needs of the 74.25 system users; 74.26 (3) set rates and fees for services; 74.27 (4) approve contracts relating to the system; 74.28 (5) in consultation with the office of technology, develop 74.29 the system plan, including plans for the phasing of its 74.30 implementation and maintenance of the initial system, and the 74.31 annual program and fiscal plans for the system; and 74.32 (6) in consultation with the office of technology, develop 74.33 a plan for interconnection of the network with private colleges 74.34 and public and private schools in the state. 74.35 Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may 74.36 require the participation of state agencies, the state board of 75.1 education, and the board of trustees of the Minnesota state 75.2 colleges and universities and may request the participation of 75.3 the board of regents of the University of Minnesota, in the 75.4 planning and implementation of the network to provide 75.5 interconnective technologies. The commissioner shall establish 75.6 reimbursement rates in cooperation with the commissioner of 75.7 finance to be billed to participating agencies and educational 75.8 institutions sufficient to cover the operating, maintenance, and 75.9 administrative costs of the system. 75.10 (b) A direct appropriation made to an educational 75.11 institution for usage costs associated with the STARS network75.12 MNet must only be used by the educational institution for 75.13 payment of usage costs of the network as billed by the 75.14 commissioner of administration. 75.15 Subd. 6. [ REVOLVING FUNDAPPROPRIATION.] Money 75.16 appropriated for the statewide telecommunications access routing75.17 systemMNet and fees for telecommunications services must be 75.18 deposited in an account in the intertechnologies revolving75.19 fund. Money in the account is appropriated annually to the 75.20 commissioner to operate telecommunications services. 75.21 Subd. 7. [EXEMPTION.] The system is exempt from the 75.22 five-year limitation on contracts set by section 16B.07, 75.23 subdivision 2. 75.24 Sec. 5. [16B.466] [ADMINISTRATION OF STATE COMPUTER 75.25 FACILITIES.] 75.26 Subdivision 1. [COMMISSIONER'S RESPONSIBILITY.] The 75.27 commissioner shall integrate and operate the state's centralized 75.28 computer facilities to serve the needs of state government. The 75.29 commissioner shall provide technical assistance to state 75.30 agencies in the design, development, and operation of their 75.31 computer systems. 75.32 Subd. 2. [JOINT ACTIONS.] The commissioner may, within 75.33 available funding, join with the federal government, other 75.34 states, local governments, and organizations representing those 75.35 groups either jointly or severally in the development and 75.36 implementation of systems analysis, information services, and 76.1 computerization projects. 76.2 Sec. 6. Minnesota Statutes 1996, section 16B.467, is 76.3 amended to read: 76.4 16B.467 [ELECTRONIC PERMITTING AND LICENSINGCONDUCT OF 76.5 STATE BUSINESS.] 76.6 The commissioner of administration shall develop and 76.7 implement a system under which people seekingstate business can 76.8 be conducted and permits or licenses that can be issued76.9 immediately upon payment of a fee can obtain these permits and76.10 licensesobtained through electronic access tocommunication 76.11 with the appropriate state agencies. 76.12 Sec. 7. [16E.01] [OFFICE OF TECHNOLOGY.] 76.13 Subdivision 1. [PURPOSE.] The office of technology, 76.14 referred to in this chapter as the "office," is an agency in the 76.15 executive branch managed by an executive director appointed by 76.16 the governor. The office shall provide leadership and direction 76.17 for information and communications technology policy in 76.18 Minnesota. The office shall coordinate strategic investments in 76.19 information and communications technology to encourage the 76.20 development of a technically literate society and to ensure 76.21 sufficient access to and efficient delivery of government 76.22 services. 76.23 Subd. 2. [DISCRETIONARY POWERS.] The office may: 76.24 (1) enter into contracts for goods or services with public 76.25 or private organizations and charge fees for services it 76.26 provides; 76.27 (2) apply for, receive, and expend money from public 76.28 agencies; 76.29 (3) apply for, accept, and disburse grants and other aids 76.30 from the federal government and other public or private sources; 76.31 (4) enter into contracts with agencies of the federal 76.32 government, local governmental units, the University of 76.33 Minnesota and other educational institutions, and private 76.34 persons and other nongovernmental organizations as necessary to 76.35 perform its statutory duties; 76.36 (5) appoint committees and task forces of not more than two 77.1 years' duration to assist the office in carrying out its duties; 77.2 (6) sponsor and conduct conferences and studies, collect 77.3 and disseminate information, and issue reports relating to 77.4 information and communications technology issues; 77.5 (7) participate in the activities of standards bodies and 77.6 other appropriate conferences related to information and 77.7 communications technology issues; 77.8 (8) review the technology infrastructure of regions of the 77.9 state and cooperate with and make recommendations to the 77.10 governor, legislature, state agencies, local governments, local 77.11 technology development agencies, the federal government, private 77.12 businesses, and individuals for the realization of information 77.13 and communications technology infrastructure development 77.14 potential; 77.15 (9) sponsor, support, and facilitate innovative and 77.16 collaborative economic and community development and government 77.17 services projects, including technology initiatives related to 77.18 culture and the arts, with public and private organizations; and 77.19 (10) review and recommend alternative sourcing strategies 77.20 for state information and communications systems. 77.21 Subd. 3. [DUTIES.] The office shall: 77.22 (1) coordinate the efficient and effective use of available 77.23 federal, state, local, and private resources to develop 77.24 statewide information and communications technology and its 77.25 infrastructure; 77.26 (2) review state agency and intergovernmental information 77.27 and communications systems development efforts involving state 77.28 or intergovernmental funding, provide information to the 77.29 legislature in accordance with section 16A.11 regarding projects 77.30 reviewed, and recommend projects for inclusion in the 77.31 information technology budget under section 16A.11; 77.32 (3) encourage cooperation and collaboration among state and 77.33 local governments in developing intergovernmental communication 77.34 and information systems, and define the structure and 77.35 responsibilities of the information policy council; 77.36 (4) cooperate and collaborate with the legislative and 78.1 judicial branches in the development of information and 78.2 communications systems in those branches; 78.3 (5) continue the development of North Star, the state's 78.4 official comprehensive online service and information 78.5 initiative; 78.6 (6) promote and collaborate with the state's agencies in 78.7 the state's transition to an effectively competitive 78.8 telecommunications market; 78.9 (7) collaborate with entities carrying out education and 78.10 lifelong learning initiatives to assist Minnesotans in 78.11 developing technical literacy and obtaining access to ongoing 78.12 learning resources; 78.13 (8) promote and coordinate public information access and 78.14 network initiatives, consistent with chapter 13, to connect 78.15 Minnesota's citizens and communities to each other, to their 78.16 governments, and to the world; 78.17 (9) promote and coordinate electronic commerce initiatives 78.18 to ensure that Minnesota businesses and citizens can 78.19 successfully compete in the global economy; 78.20 (10) promote and coordinate the regular and periodic 78.21 reinvestment in the core information and communications 78.22 technology infrastructure so that state and local government 78.23 agencies can effectively and efficiently serve their customers; 78.24 (11) facilitate the cooperative development of standards 78.25 for information systems, electronic data practices and privacy, 78.26 and electronic commerce among international, national, state, 78.27 and local public and private organizations; and 78.28 (12) work with others to avoid unnecessary duplication of 78.29 existing services or activities provided by other public and 78.30 private organizations while building on the existing 78.31 governmental, educational, business, health care, and economic 78.32 development infrastructures. 78.33 Sec. 8. [16E.02] [OFFICE OF TECHNOLOGY STRUCTURE AND 78.34 PERSONNEL.] 78.35 Subdivision 1. [OFFICE MANAGEMENT AND STRUCTURE.] The 78.36 executive director is the state's chief information officer and 79.1 technology advisor to the governor. The salary of the executive 79.2 director may not exceed 85 percent of the governor's salary. 79.3 The executive director may employ a deputy director, assistant 79.4 directors, and other employees that the executive director may 79.5 consider necessary. The executive director and the deputy and 79.6 assistant directors and one confidential secretary serve in the 79.7 unclassified service. The staff of the office must include 79.8 individuals knowledgeable in information and communications 79.9 technology. The executive director may appoint other personnel 79.10 as necessary to operate the office of technology in accordance 79.11 with chapter 43A. 79.12 Subd. 2. [INTERGOVERNMENTAL PARTICIPATION.] The executive 79.13 director or the director's designee shall serve as a member of 79.14 the Minnesota education telecommunications council, the 79.15 geographic information systems council, the library planning 79.16 task force, or their respective successor organizations, and as 79.17 a member of Minnesota Technology, Inc., the Minnesota health 79.18 data institute as a nonvoting member, and the Minnesota world 79.19 trade center corporation. 79.20 Sec. 9. [16E.03] [ADMINISTRATION OF STATE INFORMATION AND 79.21 COMMUNICATIONS SYSTEMS.] 79.22 Subdivision 1. [DEFINITIONS.] For the purposes of sections 79.23 16E.03 to 16E.05, the following terms have the meanings given 79.24 them. 79.25 (a) "Information and communications technology activity" 79.26 means the development or acquisition of information and 79.27 communications technology devices and systems, but does not 79.28 include MNet or its contractors. 79.29 (b) "Data processing device or system" means equipment or 79.30 computer programs, including computer hardware, firmware, 79.31 software, and communication protocols, used in connection with 79.32 the processing of information through electronic data processing 79.33 means, and includes data communication devices used in 79.34 connection with computer facilities for the transmission of data. 79.35 (c) "State agency" means an agency in the executive branch 79.36 of state government and includes state colleges and universities 80.1 and the Minnesota higher education services office, 80.2 notwithstanding any other law enacted at the 1997 legislative 80.3 session. 80.4 Subd. 2. [EXECUTIVE DIRECTOR'S RESPONSIBILITY.] The 80.5 executive director shall coordinate the state's information and 80.6 communications technology systems to serve the needs of the 80.7 state government. The executive director shall: 80.8 (1) coordinate the design of a master plan for information 80.9 and communications technology systems in the state and its 80.10 political subdivisions and shall report on the plan to the 80.11 governor and legislature at the beginning of each regular 80.12 session; 80.13 (2) coordinate all information and communications 80.14 technology plans and contracts and oversee the state's 80.15 information and communications systems; 80.16 (3) establish standards for information and communications 80.17 systems that encourage competition and support open systems 80.18 environments and that are compatible with national and 80.19 international standards; and 80.20 (4) maintain a library of systems and programs developed by 80.21 the state and its political subdivisions for use by agencies of 80.22 government. 80.23 Subd. 3. [EVALUATION AND APPROVAL.] A state agency may not 80.24 undertake an information and communications technology activity 80.25 until it has been evaluated according to the procedures 80.26 developed under subdivision 4. The governor or governor's 80.27 designee shall give written approval of the proposed activity. 80.28 If the proposed activity is not approved, the commissioner of 80.29 finance shall cancel the unencumbered balance of any 80.30 appropriation allotted for the activity. This subdivision does 80.31 not apply to acquisitions or development of information and 80.32 communications systems that have anticipated total cost of less 80.33 than $100,000. 80.34 Subd. 4. [EVALUATION PROCEDURE.] The executive director 80.35 shall establish and, as necessary, update and modify procedures 80.36 to evaluate information and communications activities proposed 81.1 by state agencies. The evaluation procedure must assess the 81.2 necessity, design and plan for development, ability to meet user 81.3 requirements, feasibility, and flexibility of the proposed data 81.4 processing device or system, its relationship to other state 81.5 data processing devices or systems, and its costs and benefits 81.6 when considered by itself and when compared with other options. 81.7 Subd. 5. [REPORT TO LEGISLATURE.] The executive director 81.8 shall submit to the legislature, in the information technology 81.9 budget required by section 16A.11, a concise narrative 81.10 explanation of the activity and a request for any additional 81.11 appropriation necessary to complete the activity. 81.12 Subd. 6. [SYSTEM DEVELOPMENT METHODS.] The executive 81.13 director shall establish and, as necessary, update and modify 81.14 methods for developing information and communications systems 81.15 appropriate to the specific needs of individual state agencies. 81.16 The development methods shall be used to define the design, 81.17 programming, and implementation of systems. The development 81.18 methods must also enable and require a data processing system to 81.19 be defined in terms of its computer programs, input 81.20 requirements, output formats, administrative procedures, and 81.21 processing frequencies. 81.22 Subd. 7. [DATA SECURITY SYSTEMS.] In consultation with the 81.23 attorney general and appropriate agency heads, the executive 81.24 director shall develop data security policies, guidelines, and 81.25 standards, and the commissioner of administration shall install 81.26 and administer state data security systems on the state's 81.27 centralized computer facility consistent with these policies, 81.28 guidelines, standards, and state law to ensure the integrity of 81.29 computer-based and other data and to ensure applicable 81.30 limitations on access to data, consistent with the public's 81.31 right to know as defined in chapter 13. Each department or 81.32 agency head is responsible for the security of the department's 81.33 or agency's data. 81.34 Subd. 8. [JOINT ACTIONS.] The executive director may join 81.35 with the federal government, other states, local governments, 81.36 and organizations representing those groups either jointly or 82.1 severally in the development and implementation of systems 82.2 analysis, information services, and computerization projects. 82.3 Sec. 10. [16E.04] [INFORMATION AND COMMUNICATIONS 82.4 TECHNOLOGY POLICY.] 82.5 Subdivision 1. [DEVELOPMENT.] The office shall coordinate 82.6 with state agencies in developing and establishing policies and 82.7 standards for state agencies to follow in developing and 82.8 purchasing information and communications systems and training 82.9 appropriate persons in their use. The office shall develop, 82.10 promote, and coordinate state technology, architecture, 82.11 standards and guidelines, information needs analysis techniques, 82.12 contracts for the purchase of equipment and services, and 82.13 training of state agency personnel on these issues. 82.14 Subd. 2. [RESPONSIBILITIES.] (a) In addition to other 82.15 activities prescribed by law, the office shall carry out the 82.16 duties set out in this subdivision. 82.17 (b) The office shall develop and establish a state 82.18 information architecture to ensure that further state agency 82.19 development and purchase of information and communications 82.20 systems, equipment, and services is designed to ensure that 82.21 individual agency information systems complement and do not 82.22 needlessly duplicate or conflict with the systems of other 82.23 agencies. When state agencies have need for the same or similar 82.24 public data, the executive director, in coordination with the 82.25 affected agencies, shall promote the most efficient and 82.26 cost-effective method of producing and storing data for or 82.27 sharing data between those agencies. The development of this 82.28 information architecture must include the establishment of 82.29 standards and guidelines to be followed by state agencies. 82.30 (c) The office shall assist state agencies in the planning 82.31 and management of information systems so that an individual 82.32 information system reflects and supports the state agency's 82.33 mission and the state's requirements and functions. 82.34 (d) The office shall review agency requests for legislative 82.35 appropriations for the development or purchase of information 82.36 systems equipment or software. 83.1 (e) The office shall review major purchases of information 83.2 systems equipment to: 83.3 (1) ensure that the equipment follows the standards and 83.4 guidelines of the state information architecture; 83.5 (2) ensure that the equipment is consistent with the 83.6 information management principles adopted by the information 83.7 policy council; 83.8 (3) evaluate whether the agency's proposed purchase 83.9 reflects a cost-effective policy regarding volume purchasing; 83.10 and 83.11 (4) ensure that the equipment is consistent with other 83.12 systems in other state agencies so that data can be shared among 83.13 agencies, unless the office determines that the agency 83.14 purchasing the equipment has special needs justifying the 83.15 inconsistency. 83.16 (f) The office shall review the operation of information 83.17 systems by state agencies and provide advice and assistance to 83.18 ensure that these systems are operated efficiently and 83.19 continually meet the standards and guidelines established by the 83.20 office. The standards and guidelines must emphasize uniformity 83.21 that encourages information interchange, open systems 83.22 environments, and portability of information whenever 83.23 practicable and consistent with an agency's authority and 83.24 chapter 13. The office, in consultation with the 83.25 intergovernmental information systems advisory council and the 83.26 legislative reference library, shall recommend specific 83.27 standards and guidelines for each state agency within a time 83.28 period fixed by the office in regard to the following: 83.29 (1) establishing methods and systems directed at reducing 83.30 and ultimately eliminating redundant storage of data; and 83.31 (2) establishing information sales systems that utilize 83.32 licensing and royalty agreements to the greatest extent 83.33 possible, together with procedures for agency denial of requests 83.34 for licenses or royalty agreements by commercial users or 83.35 resellers of the information. Section 3.751 does not apply to 83.36 those licensing and royalty agreements, and the agreements must 84.1 include provisions that section 3.751 does not apply and that 84.2 the state is immune from liability under the agreement. 84.3 (g) The office shall conduct a comprehensive review at 84.4 least every three years of the information systems investments 84.5 that have been made by state agencies and higher education 84.6 institutions. The review must include recommendations on any 84.7 information systems applications that could be provided in a 84.8 more cost-beneficial manner by an outside source. The office 84.9 must report the results of its review to the legislature and the 84.10 governor. 84.11 (h) The office shall report to the legislature by January 84.12 15 of each year on progress in implementing paragraph (f), 84.13 clauses (1) and (2). 84.14 Sec. 11. [16E.05] [GOVERNMENT INFORMATION ACCESS.] 84.15 Subdivision 1. [DUTIES.] The office, in consultation with 84.16 interested persons, shall: 84.17 (1) coordinate statewide efforts by units of state and 84.18 local government to plan for and develop a system for providing 84.19 access to government services; 84.20 (2) make recommendations to facilitate coordination and 84.21 assistance of demonstration projects; and 84.22 (3) explore ways and means to improve citizen and business 84.23 access to public services, including implementation of 84.24 technological improvements. 84.25 Subd. 2. [APPROVAL OF STATE AGENCY INITIATIVES.] A state 84.26 agency shall coordinate with the office when implementing a new 84.27 initiative for providing electronic access to state government 84.28 information. 84.29 Subd. 3. [CAPITAL INVESTMENT.] No state agency may propose 84.30 or implement a capital investment plan for a state office 84.31 building unless: 84.32 (1) the agency has developed a plan for increasing 84.33 telecommuting by employees who would normally work in the 84.34 building, or the agency has prepared a statement describing why 84.35 such a plan is not practicable; and 84.36 (2) the plan or statement has been reviewed by the office. 85.1 Sec. 12. [16E.06] [DATA PRIVACY.] 85.2 The following data submitted to the office by businesses 85.3 are private data on individuals or nonpublic data: financial 85.4 statements, business plans, income and expense projections, 85.5 customer lists, and market and feasibility studies not paid for 85.6 with public funds. 85.7 Sec. 13. [16E.07] [NORTH STAR.] 85.8 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 85.9 subdivision apply to this section. 85.10 (b) [CORE SERVICES.] "Core services" means information 85.11 system applications required to provide secure information 85.12 services and online applications and content to the public from 85.13 government units. Online applications may include, but are not 85.14 limited to: 85.15 (1) standardized public directory services and standardized 85.16 content services; 85.17 (2) online search systems; 85.18 (3) general technical services to support government unit 85.19 online services; 85.20 (4) electronic conferencing and communication services; 85.21 (5) secure electronic transaction services; 85.22 (6) digital audio, video, and multimedia services; and 85.23 (7) government intranet content and service development. 85.24 (c) [GOVERNMENT UNIT.] "Government unit" means a state 85.25 department, agency, commission, council, board, task force, or 85.26 committee; a constitutional office; a court entity; the 85.27 Minnesota state colleges and universities; a county, statutory 85.28 or home rule charter city, or town; a school district; a special 85.29 district; or any other board, commission, district, or authority 85.30 created under law, local ordinance, or charter provision. 85.31 Subd. 2. [ESTABLISHED.] The office shall establish "North 85.32 Star" as the state's comprehensive government online information 85.33 service. North Star is the state's governmental framework for 85.34 coordinating and collaborating in providing online government 85.35 information and services. Government agencies that provide 85.36 electronic access to government information are requested to 86.1 make available to North Star their most frequently requested 86.2 public data. 86.3 Subd. 3. [ACCESS TO DATA.] The legislature determines that 86.4 the greatest possible access to certain government information 86.5 and data is essential to allow citizens to participate fully in 86.6 a democratic system of government. Certain information and 86.7 data, including, but not limited to the following, must be 86.8 provided free of charge or for a nominal cost associated with 86.9 reproducing the information or data: 86.10 (1) directories of government services and institutions; 86.11 (2) legislative and rulemaking information, including 86.12 public information newsletters, bill text and summaries, bill 86.13 status information, rule status information, meeting schedules, 86.14 and the text of statutes and rules; 86.15 (3) supreme court and court of appeals opinions and general 86.16 judicial information; 86.17 (4) opinions of the attorney general; 86.18 (5) ethical practices board and election information; 86.19 (6) public budget information; 86.20 (7) local government documents, such as codes, ordinances, 86.21 minutes, meeting schedules, and other notices in the public 86.22 interest; 86.23 (8) official documents, releases, speeches, and other 86.24 public information issued by government agencies; and 86.25 (9) the text of other government documents and publications 86.26 that government agencies determine are important to public 86.27 understanding of government activities. 86.28 Subd. 4. [STAFF.] The executive director of the office 86.29 shall appoint the manager of the North Star online information 86.30 service and hire staff to carry out the responsibilities of the 86.31 service. 86.32 Subd. 5. [PARTICIPATION; CONSULTATION; GUIDELINES.] The 86.33 North Star staff shall consult with governmental and 86.34 nongovernmental organizations to establish rules for 86.35 participation in the North Star service. Government units 86.36 planning, developing, or providing publicly accessible online 87.1 services shall provide access through and collaborate with North 87.2 Star and formally register with the office. The University of 87.3 Minnesota is requested to establish online connections and 87.4 collaborate with North Star. Units of the legislature shall 87.5 make their services available through North Star. Government 87.6 units may be required to submit standardized directory and 87.7 general content for core services but are not required to 87.8 purchase core services from North Star. North Star shall 87.9 promote broad public access to the sources of online information 87.10 or services through multiple technologies. 87.11 Subd. 6. [FEES.] The office shall establish fees for 87.12 technical and transaction services for government units through 87.13 North Star. Fees must be credited to the North Star account. 87.14 The office may not charge a fee for viewing or inspecting data 87.15 made available through North Star or linked facilities, unless 87.16 specifically authorized by law. 87.17 Subd. 7. [NORTH STAR ACCOUNT.] The North Star account is 87.18 created in the special revenue fund. The account consists of: 87.19 (1) grants received from nonstate entities; 87.20 (2) fees and charges collected by the office; 87.21 (3) gifts, donations, and bequests made to the office; and 87.22 (4) other money credited to the account by law. 87.23 Money in the account is appropriated to the office to be 87.24 used to continue the development of the North Star project. 87.25 Subd. 8. [SECURE TRANSACTION SYSTEM.] The office shall 87.26 plan and develop a secure transaction system to support delivery 87.27 of government services electronically. 87.28 Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall 87.29 identify opportunities to aggregate demand for technical 87.30 services required by government units for online activities and 87.31 may contract with governmental or nongovernmental entities to 87.32 provide services. These contracts are not subject to the 87.33 requirements of chapter 16B, except sections 16B.167, 16B.17, 87.34 and 16B.175. 87.35 Subd. 10. [OUTREACH.] The office may promote the 87.36 availability of government online information and services 88.1 through public outreach and education. Public network expansion 88.2 in communities through libraries, schools, colleges, local 88.3 government, and other community access points must include 88.4 access to North Star. North Star may make materials available 88.5 to those public sites to promote awareness of the service. 88.6 Subd. 11. [ADVANCED DEVELOPMENT COLLABORATION.] The office 88.7 shall identify information technology services with broad public 88.8 impact and advanced development requirements. Those services 88.9 shall assist in the development of and utilization of core 88.10 services to the greatest extent possible where appropriate, cost 88.11 effective, and technically feasible. This includes, but is not 88.12 limited to, higher education, statewide online library, economic 88.13 and community development, and K-12 educational technology 88.14 services. North Star shall participate in electronic commerce 88.15 research and development initiatives with the University of 88.16 Minnesota and other partners. The statewide online library 88.17 service shall consult, collaborate, and work with North Star to 88.18 ensure development of proposals for advanced government 88.19 information locator and electronic depository and archive 88.20 systems. 88.21 Sec. 14. [16E.08] [BUSINESS LICENSE INFORMATION.] 88.22 The office shall coordinate the design, establishment, 88.23 implementation, and maintenance of an electronic system to allow 88.24 the public to retrieve by computer information prepared by the 88.25 department of trade and economic development bureau of business 88.26 licenses on licenses and their requirements. The office shall 88.27 establish the format and standards for retrieval consistent with 88.28 state information and data interchange policies. The office 88.29 shall integrate the system with the North Star online 88.30 information system. The office shall work in collaboration with 88.31 the department of trade and economic development bureau of 88.32 business licenses. The bureau is responsible for creating and 88.33 operating the system. 88.34 Sec. 15. [16E.11] [TRADE POINT.] 88.35 The office shall cooperate with the United Nations, the 88.36 Minnesota world trade center corporation, the commissioner of 89.1 trade and economic development, the University of Minnesota, and 89.2 private businesses to expand international trading opportunities 89.3 for small and medium sized businesses through the use of 89.4 electronic commerce technologies and participation in the global 89.5 trade point network. The office shall support research and 89.6 development of secured trading technologies by the commissioner 89.7 of trade and economic development, the University of Minnesota, 89.8 and others. The office, in cooperation with the commissioner of 89.9 trade and economic development, shall coordinate expansion of 89.10 membership in a trade point association. The office shall 89.11 provide training and outreach and support training and outreach 89.12 provided by the commissioner of trade and economic development 89.13 and the University of Minnesota. These agencies shall cooperate 89.14 in the identification and development of electronic trading 89.15 centers in multiple regions of this state. 89.16 Sec. 16. [16E.12] [INTERNET CENTER.] 89.17 Subdivision 1. [CREATION.] The office shall create the 89.18 Internet center, centrally located within the state, to 89.19 collaborate with the North Star online information service, 89.20 public and private partners, and with existing or emerging 89.21 technology and community development efforts. 89.22 Subd. 2. [COMMUNITY ASSISTANCE.] The center shall assist 89.23 communities and regions in comprehensive information and 89.24 telecommunications technology (IT) community planning, demand 89.25 aggregation, design, and implementation. It shall maintain an 89.26 interactive database of community and business-related IT 89.27 experience, showcase successful models of community and business 89.28 IT integration, coordinate statewide IT community development 89.29 technical assistance, and act as a clearinghouse for 89.30 applications and education in the uses of IT. 89.31 Subd. 3. [TELETERNS; RESOURCE TEAMS.] A "teletern" is a 89.32 student enrolled in a higher education program who has 89.33 information and telecommunications technology skills. The 89.34 center shall coordinate the training and placement of teleterns 89.35 who have IT experience and community development process skills, 89.36 regional IT community development coordinators, and community IT 90.1 resource teams to work in partnership with communities as they 90.2 plan for and implement comprehensive IT resource development 90.3 efforts. This includes the aggregation of demand for IT to help 90.4 facilitate the transition into a market-based, competitive IT 90.5 environment and the use of IT tools to enhance access to 90.6 community services, improve the business climate, and strengthen 90.7 community ties. 90.8 Subd. 4. [COMMUNITY-BASED DEVELOPMENT PARTNERS.] The 90.9 center and its community-based development functions shall 90.10 coordinate or partner, when possible, with Minnesota learning 90.11 community initiatives, particularly for community-based 90.12 technology learning centers; Minnesota library technology 90.13 investments; trade point Minnesota, the University of Minnesota 90.14 secure electronic authentication link (SEAL) laboratory and 90.15 electronic trading centers; the Small Business Administration 90.16 business information center; Minnesota technology centers; the 90.17 Minnesota extension service Access Minnesota sites; and the 90.18 state's telecommunications collaboration project, among others. 90.19 Sec. 17. [16E.13] [COMMUNITY TECHNOLOGY RESOURCE 90.20 DEVELOPMENT.] 90.21 Subdivision 1. [CREATION AND PURPOSE.] The information and 90.22 telecommunications technology (IT) community resource 90.23 development initiative is created under the oversight 90.24 jurisdiction of the office of technology to build the capacity 90.25 of citizens, businesses, communities, and regions of the state 90.26 to fully realize the benefits of IT for sustainable community 90.27 and economic development and to help facilitate the transition 90.28 into the market-based, competitive IT environment. 90.29 Subd. 2. [DUTIES GENERALLY.] Through this initiative, the 90.30 office shall: 90.31 (1) collect, organize, and distribute information regarding 90.32 the benefits, applications, and effective uses of IT; 90.33 (2) promote community-based telecommunications planning and 90.34 development and the use of community-oriented electronic 90.35 communications and information applications in health care, 90.36 education, and commerce; 91.1 (3) award grants for community-based development seed funds 91.2 to encourage public-private partnerships that foster effective 91.3 IT use and IT integration activities in the community; and 91.4 (4) facilitate the aggregation of demand for IT on a 91.5 comprehensive private, nonprofit, and public sector shared basis 91.6 in communities. 91.7 Subd. 3. [ASSISTANCE AND FUNDING; GENERAL PRINCIPLES.] 91.8 Community technical assistance and development seed funding for 91.9 aggregation of demand and community IT planning provided through 91.10 the IT community resource development initiative is contingent 91.11 upon the following general principles: 91.12 (1) that communities and regions show evidence of, or 91.13 intent to do, cooperative funding and planning between sectors 91.14 including, but not limited to, private sector providers, public 91.15 sector technology investments such as MNet, library systems, 91.16 health care providers, businesses, schools and other educational 91.17 institutions, and the nonprofit sector; and 91.18 (2) that communities and regions agree to form local and 91.19 regional IT coordination committees or modify similar, existing 91.20 committees to be more inclusive of other sectors and undertake 91.21 comprehensive planning across those sectors to leverage public 91.22 and private IT investment to the maximum benefit of all citizens. 91.23 Sec. 18. Minnesota Statutes 1996, section 403.02, 91.24 subdivision 2, is amended to read: 91.25 Subd. 2. [METROPOLITAN AREA.] "Metropolitan area" means 91.26 the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,91.27 and Washingtonmetropolitan area as defined in section 473.121, 91.28 subdivision 2. 91.29 Sec. 19. Minnesota Statutes 1996, section 403.02, is 91.30 amended by adding a subdivision to read: 91.31 Subd. 10. [COMMISSIONER.] "Commissioner" means the 91.32 commissioner of administration. 91.33 Sec. 20. Minnesota Statutes 1996, section 403.08, is 91.34 amended by adding a subdivision to read: 91.35 Subd. 7. [CELLULAR AND OTHER NONWIRE PROVIDERS.] (a) Each 91.36 cellular and other wireless access service provider shall 92.1 cooperate in planning and implementing integration with enhanced 92.2 911 systems operating in their service territories to meet 92.3 federal communications commission enhanced 911 standards. By 92.4 August 1, 1997, each 911 emergency telephone service provider 92.5 operating enhanced 911 systems, in cooperation with each 92.6 involved cellular or other wireless access service provider, 92.7 shall develop and provide to the commissioner good-faith 92.8 estimates of installation and recurring expenses to integrate 92.9 cellular 911 service into the enhanced 911 networks to meet 92.10 federal communications commission phase one wireless enhanced 92.11 911 standards. The commissioner shall coordinate with counties 92.12 and affected public safety agency representatives in developing 92.13 a statewide design and plan for implementation. 92.14 (b) Planning shall be completed by October 1, 1997, for the 92.15 metropolitan area and shall be completed by December 1, 1997, 92.16 for the areas outside of the metropolitan area. 92.17 (c) Planning considerations must include cost, degree of 92.18 integration into existing 911 systems, the retention of existing 92.19 911 infrastructure, and the potential implications of phase 2 of 92.20 the federal communications commission wireless enhanced 911 92.21 standards. 92.22 (d) Counties shall incorporate the statewide design when 92.23 modifying county 911 plans to provide for integrating wireless 92.24 911 service into existing county 911 systems. The commissioner 92.25 shall contract with the involved wireless service providers and 92.26 911 service providers to integrate cellular and other wireless 92.27 services into existing 911 systems where feasible. 92.28 Sec. 21. Minnesota Statutes 1996, section 403.11, 92.29 subdivision 2, is amended to read: 92.30 Subd. 2. [MODIFICATION COSTS.] (a) The costs of a public 92.31 utility incurred in the modification of central office switching 92.32 equipment for minimum 911 service shall be paid from the general 92.33 fund of the state treasury by appropriations for that purpose. 92.34 (b) The installation and recurring charges for integrating 92.35 cellular and other wireless access services 911 calls into 92.36 enhanced 911 systems must be paid by the commissioner if the 911 93.1 service provider is included in the statewide design plan and 93.2 the charges have been certified and approved under subdivision 93.3 3, or the wireless access service provider has completed a 93.4 contract for service with the commissioner, and charges are 93.5 considered reasonable and accurate by the commissioner. Charges 93.6 payable to wireless access service providers are not subject to 93.7 the provisions of subdivision 3. 93.8 Sec. 22. Minnesota Statutes 1996, section 403.113, 93.9 subdivision 1, is amended to read: 93.10 Subdivision 1. [FEE.] (a) In addition to the actual fee 93.11 assessed under section 403.11, each customer receiving local 93.12 telephone service, excludingincluding cellular or other nonwire 93.13 service, is assessed a fee to fund implementation and 93.14 maintenance of enhanced 911 service, including acquisition of 93.15 necessary equipment and the costs of the department of93.16 administrationcommissioner to administer the program. The 93.17 enhanced fee collected from cellular or other nonwire service 93.18 customers must be collected effective in July 1997 billings. 93.19 The actual fee assessed under section 403.11 and the enhanced 93.20 911 service fee must be collected as one amount and may not 93.21 exceed the amount specified in section 403.11, subdivision 1, 93.22 paragraph (b). 93.23 (b) The enhanced 911 service fee must be collected and 93.24 deposited in the same manner as the fee in section 403.11 and 93.25 used solely for the purposes of paragraph (a) and subdivision 3. 93.26 (c) The commissioner of the department of administration, 93.27 in consultation with counties and 911 system users, shall 93.28 determine the amount of the enhanced 911 service fee and inform 93.29 telephone companies or communications carriers that provide 93.30 service capable of originating a 911 emergency telephone call of 93.31 the total amount of the 911 service fees in the same manner as 93.32 provided in section 403.11. 93.33 Sec. 23. Minnesota Statutes 1996, section 403.113, 93.34 subdivision 2, is amended to read: 93.35 Subd. 2. [DISTRIBUTION OF MONEY.] (a) After payment of the 93.36 costs of the department of administration to administer the 94.1 program, the commissioner shall distribute the money collected 94.2 under this section as follows: 94.3 (1) one-half of the amount equally to all qualified 94.4 counties, and after October 1, 1997, to all qualified counties, 94.5 existing ten public safety answering points operated by the 94.6 Minnesota state patrol, and each governmental entity operating 94.7 the individual public safety answering points serving the 94.8 metropolitan airports commission, Red Lake Indian Reservation, 94.9 and the University of Minnesota police department; and 94.10 (2) the remaining one-half to qualified counties and cities 94.11 with existing 911 systems based on each county's or city's 94.12 percentage of the total population of qualified counties and 94.13 cities. The population of a qualified city with an existing 94.14 system must be deducted from its county's population when 94.15 calculating the county's share under this clause if the city 94.16 seeks direct distribution of its share. 94.17 (b) A county's share under subdivision 1 must be shared pro 94.18 rata between the county and existing city systems in the 94.19 county. A county or city or other governmental entity as 94.20 described in paragraph (a), clause (1), shall deposit money 94.21 received under this subdivision in an interest-bearing fund or 94.22 account separate from the county's or city'sgovernmental 94.23 entity's general fund and may use money in the fund or account 94.24 only for the purposes specified in subdivision 3. 94.25 (c) For the purposes of this subdivision, a county or city94.26 is qualified to share in the distribution of money for enhanced94.27 911 service if the county auditor certifies to the commissioner94.28 of administration the amount of the county's or city's levy for94.29 the cost of providing enhanced 911 service for taxes payable in94.30 the year in which money for enhanced 911 service will be94.31 distributed. The commissioner may not distribute money to a94.32 county or city in an amount greater than twice the amount of the94.33 county's or city's certified levy.A county or city or other 94.34 governmental entity as described in paragraph (a), clause (1), 94.35 is not qualified to share in the distribution of money for 94.36 enhanced 911 service if , in addition to the levy required under95.1 this paragraph,it has not implemented enhanced 911 service 95.2 before December 31, 1998. 95.3 (d) For the purposes of this subdivision, "existing city 95.4 system" means a city 911 system that provides at least basic 911 95.5 service and that was implemented on or before April 1, 1993. 95.6 Sec. 24. Minnesota Statutes 1996, section 403.113, 95.7 subdivision 3, is amended to read: 95.8 Subd. 3. [LOCAL EXPENDITURES.] (a) Money distributed to95.9 counties or an existing city systemunder subdivision 2 for 95.10 enhanced 911 service may be spent on enhanced 911 system costs 95.11 for the purposes stated in subdivision 1, paragraph (a). In 95.12 addition, money may be spent to lease, purchase, lease-purchase, 95.13 or maintain enhanced 911 equipment, including telephone 95.14 equipment; recording equipment; computer hardware; computer 95.15 software for database provisioning, addressing, mapping, and any 95.16 other software necessary for automatic location identification 95.17 or local location identification; trunk lines; selective routing 95.18 equipment; the master street address guide; dispatcher public 95.19 safety answering point equipment proficiency and operational 95.20 skills; pay for long-distance charges incurred due to 95.21 transferring 911 calls to other jurisdictions; and the equipment 95.22 necessary within the public safety answering point for community 95.23 alert systems and to notify and communicate with the emergency 95.24 services requested by the 911 caller. 95.25 (b) Money distributed for enhanced 911 service may not be 95.26 spent on: 95.27 (1) purchasing or leasing of real estate or cosmetic 95.28 additions to or remodeling of communications centers; 95.29 (2) mobile communications vehicles, fire engines, 95.30 ambulances, law enforcement vehicles, or other emergency 95.31 vehicles; 95.32 (3) signs, posts, or other markers related to addressing or 95.33 any costs associated with the installation or maintenance of 95.34 signs, posts, or markers. 95.35 Sec. 25. Minnesota Statutes 1996, section 403.113, 95.36 subdivision 4, is amended to read: 96.1 Subd. 4. [AUDITS.] Each county and city or other 96.2 governmental entity as described in subdivision 2, paragraph 96.3 (a), clause (1), shall conduct an annual audit on the use of 96.4 funds distributed to it for enhanced 911 service. A copy of 96.5 each audit report must be submitted to the commissioner of 96.6 administration. 96.7 Sec. 26. Minnesota Statutes 1996, section 403.13, is 96.8 amended to read: 96.9 403.13 [CELLULAR TELEPHONE USE.] 96.10 Subdivision 1. [CELLULAR 911 CALLS.] (a) Those 96.11 governmental entities that are responsible for the design, 96.12 planning, and coordination of the 911 emergency telephone system 96.13 under the requirements of this chapter shall ensure that a 911 96.14 emergency call made with a cellular or other wireless access 96.15 device is automatically connected to and answered by the 96.16 appropriate public safety answering point. 96.17 (b) In order to comply with paragraph (a), representatives 96.18 of each county's 911 planning committee shall consult with 96.19 representatives of the relevant district office of the state 96.20 patrol to allocate responsibility for answering emergency 911 96.21 calls in each county, and shall notify the commissioner of the 96.22 agreed upon allocation. By April 1, 1998, for the metropolitan 96.23 area and June 1, 1998, for the area outside the metropolitan 96.24 area, the county 911 planning committees and the district 96.25 offices of the state patrol shall notify the commissioner of any 96.26 unresolved issues regarding the allocation of responsibility for 96.27 answering cellular 911 emergency calls. 96.28 (c) Unresolved issues in the metropolitan area must be 96.29 resolved by: 96.30 (1) the executive director of the metropolitan 911 board; 96.31 (2) the 911 product manager appointed by the commissioner; 96.32 (3) a representative appointed by the Minnesota state 96.33 sheriffs association from the metropolitan area; 96.34 (4) the commissioner of public safety or the commissioner's 96.35 designee; and 96.36 (5) a representative appointed by the Minnesota chiefs of 97.1 police association from the metropolitan area. 97.2 (d) Unresolved issues in the area outside the metropolitan 97.3 area must be resolved by: 97.4 (1) a representative appointed by association of Minnesota 97.5 counties from the area outside the metropolitan area; 97.6 (2) the 911 product manager appointed by the commissioner; 97.7 (3) a representative appointed by the Minnesota state 97.8 sheriffs association from the area outside the metropolitan 97.9 area; 97.10 (4) the commissioner of public safety or the commissioner's 97.11 designee; and 97.12 (5) a representative appointed by the Minnesota league of 97.13 cities from the area outside the metropolitan area. 97.14 (e) These committees shall resolve outstanding issues by 97.15 December 31, 1998. The decision of the committee is final. 97.16 Subd. 2. [NOTIFICATION OF SUBSCRIBERS.] A provider of 97.17 cellular or other wireless telephone services in Minnesota shall 97.18 notify its subscribers at the time of initial subscription and 97.19 four times per year thereafter that a 911 emergency call made 97.20 with a cellularwireless telephone is not always answered by a 97.21 local public safety answering point but rather ismay be routed 97.22 to a state patrol dispatcher and that, accordingly, the caller 97.23 must provide specific information regarding the caller's 97.24 location. 97.25 Sec. 27. [403.14] [WIRELESS ENHANCED 911 SERVICE PROVIDER; 97.26 LIABILITY.] 97.27 No wireless enhanced 911 emergency communication service 97.28 provider, its employees, or its agents is liable to any person 97.29 for civil damages resulting from or caused by any act or 97.30 omission in the development, design, installation, operation, 97.31 maintenance, performance, or provision of enhanced 911 wireless 97.32 service, except for willful or wanton misconduct. No wireless 97.33 carrier, its employees, or its agents is liable to any person 97.34 who uses enhanced 911 wireless service for release of subscriber 97.35 information required under this chapter to any public safety 97.36 answering point. 98.1 Sec. 28. Minnesota Statutes 1996, section 473.894, 98.2 subdivision 3, is amended to read: 98.3 Subd. 3. [APPLICATION TO FCC.] Within 180 days from 98.4 adoption of the regionwide public safety radio system 98.5 communication plan the commissioner of transportation, on behalf 98.6 of the state of Minnesota, shall use the plan adopted by the 98.7 board under subdivision 2 to submit an extended implementation 98.8 application to the Federal Communications Commission (FCC) for 98.9 the NPSPAC channels and other public safety frequencies 98.10 available for use in the metropolitan area and necessary to 98.11 implement the plan. Local governments and all other public or 98.12 private entities eligible under part 90 of the FCC rules shall 98.13 not apply for public safety channels in the 821 to 824 and 866 98.14 to 869 megahertz bands for use within the metropolitan counties 98.15 until the FCC takes final action on the regional application 98.16 submitted under this section. Exceptions to the restrictions on 98.17 the application for the NPSPAC channels may be granted by the 98.18 radio board. The Minnesota department of transportation shall 98.19 hold the master system licenses for all public safety 98.20 frequencies assigned to the metropolitan area issued by the FCC98.21 first phase under the board's plan and these channels shall be 98.22 used for the implementation of the plan. Local governments and98.23 other public and private entities eligible under part 90 of the98.24 FCC rules may apply to the FCC as colicensees for subscriber98.25 equipment and those portions of the network infrastructure owned98.26 by them. Application for colicensing under this section shall98.27 require the concurrence of the radio boardThe radio board shall 98.28 hold the master system licenses for the public safety 98.29 frequencies assigned to local government subsystems under the 98.30 board's plan and these channels shall be used for implementation 98.31 of the plan. Upon approval by the board of a local government's 98.32 subsystem plan and evidence of a signed contract with a vendor 98.33 for construction of a subsystem consistent with the board's 98.34 system plan, the board shall apply to the FCC to transfer to the 98.35 local government the licenses for the public safety frequencies 98.36 assigned by the plan for use in the network infrastructure owned 99.1 by the local government. The radio board, the commissioner of 99.2 transportation, and local subsystem owners shall jointly 99.3 colicense all subscriber equipment for the backbone system. 99.4 Sec. 29. [APPLICATION.] 99.5 Section 28 applies in Anoka, Carver, Dakota, Hennepin, 99.6 Ramsey, Scott, and Washington counties. 99.7 Sec. 30. [INTERIM FEE; APPROPRIATION AND DISTRIBUTION.] 99.8 (a) Until June 30, 1998, the fee for enhanced wireless 911 99.9 service is ten cents per month in addition to the fee actually 99.10 collected under Minnesota Statutes, section 403.11, subdivision 99.11 1. The additional fee is imposed effective July 1, 1997, and is 99.12 appropriated to the commissioner of administration for 99.13 distribution as established in section 22. 99.14 (b) Distribution of the revenue from the fee under section 99.15 22 for enhanced wireless 911 service must begin October 1, 1997. 99.16 The commissioner of administration shall determine the amount of 99.17 the additional enhanced wireless 911 service fee to be in effect 99.18 beginning July 1, 1998, under Minnesota Statutes, section 99.19 403.113. 99.20 Sec. 31. [INITIAL DUTIES.] 99.21 (a) Upon creation, the office of technology shall perform a 99.22 series of preliminary duties designed to assess the current 99.23 status of the state's investment in information technology and 99.24 to establish a clear means of directing future information 99.25 technology initiatives. 99.26 (b) By November 1, 1997, the office shall recommend to the 99.27 governor and the legislature a clearly defined statutory funding 99.28 structure that: 99.29 (1) efficiently uses available federal, state, and local 99.30 funding sources to develop and maintain a statewide public 99.31 information and communications infrastructure; and 99.32 (2) provides a means of tracking and compiling all state 99.33 agency expenditures related to information technology. 99.34 This report also shall include a proposed format to be used 99.35 by state agencies for information technology budget requests. 99.36 The proposed format must be created in collaboration with the 100.1 commissioners of administration and finance. 100.2 (c) By December 1, 1997, the office shall review and report 100.3 to the governor and the legislature on the status of all 100.4 currently established state agency and intergovernmental 100.5 information and communications systems that use state funding. 100.6 The report shall recommend a means of consolidating existing 100.7 governmental information technology boards and councils, to 100.8 achieve efficiency, prevent duplication of effort, and clarify 100.9 lines of authority. 100.10 Sec. 32. [EMPLOYEES; TRANSITION.] 100.11 Persons assigned to the office of technology on the day 100.12 before the effective date of this section are transferred in 100.13 their existing status according to Minnesota Statutes, section 100.14 15.039, subdivision 7. Effective July 1, 1998, these employees, 100.15 other than the executive director and the deputy and assistant 100.16 directors, and one confidential secretary, are converted from 100.17 the unclassified to the classified service under the following 100.18 conditions: 100.19 (a) The commissioner of employee relations will allocate 100.20 positions and incumbent employees to appropriate classes in the 100.21 state classification plan pursuant to Minnesota Statutes, 100.22 section 43A.07. The commissioner will also assign positions and 100.23 incumbent employees to an appropriate state unit under Minnesota 100.24 Statutes, section 179A.10. Positions converted with their 100.25 incumbents do not create vacancies in state service. 100.26 (b) Employees serving in unclassified appointments from the 100.27 effective date of this section through June 30, 1998, and 100.28 converted to unlimited classified service on July 1, 1998, are 100.29 converted to state service without examination. Those converted 100.30 to classified positions in the managerial plan pursuant to 100.31 Minnesota Statutes, section 43A.18, subdivision 3, who have 100.32 completed 12 months of service in their positions and all others 100.33 converted to classified positions who have completed six months 100.34 of service in their positions and all others converted to 100.35 classified positions who have completed six months of service in 100.36 their positions are converted with permanent status. Employees 101.1 converted to classified managerial positions with less than 12 101.2 months of service in their positions and all others converted to 101.3 classified positions with less than six months of service in 101.4 their position are converted with probationary status. All time 101.5 already served by these employees in the converted positions 101.6 must be credited toward meeting the probationary period 101.7 requirement of the state contract or plan to which their 101.8 position has been assigned. 101.9 Sec. 33. [TRANSFERS.] 101.10 In accordance with Minnesota Statutes, sections 15.039 and 101.11 43A.045, the positions for functions transferred from the 101.12 information policy office, with incumbents, excluding the public 101.13 information policy analysis division, are transferred to the 101.14 Minnesota office of technology, effective July 1, 1997. 101.15 Sec. 34. [INFORMATION TECHNOLOGY.] 101.16 By February 1, 1998, each executive branch state agency, 101.17 including the MNSCU system, shall report to the finance 101.18 divisions or committees in the house and the senate that 101.19 appropriate money for the agency on current and planned 101.20 expenditures for information technology. The report must 101.21 include: 101.22 (1) expenditures that will be incurred in the biennium 101.23 ending June 30, 1999, and any planned future expenditures for 101.24 each information technology project in the agency; 101.25 (2) the goals and objectives for each information 101.26 technology project that is being developed in the biennium 101.27 ending June 30, 1999, or that is planned for a future biennium; 101.28 and 101.29 (3) the agency's progress in making its information 101.30 technology systems compliant with the year 2000. 101.31 Sec. 35. [INSTRUCTION TO REVISOR.] 101.32 The revisor shall change in Minnesota Statutes and 101.33 Minnesota Rules all references to the information policy office 101.34 and the government information access council to the office of 101.35 technology. 101.36 Sec. 36. [REPEALER.] 102.1 Minnesota Statutes 1996, sections 15.95; 15.96; 16B.40; 102.2 16B.41; and 16B.43, are repealed. 102.3 Sec. 37. [EFFECTIVE DATE.] 102.4 Sections 20, 21, and 23 to 28 are effective the day 102.5 following final enactment. 102.6 ARTICLE 4 102.7 COMMUNITY-BASED PLANNING 102.8 Section 1. [4A.08] [COMMUNITY-BASED PLANNING GOALS.] 102.9 The goals of community-based planning are: 102.10 (1) [CITIZEN PARTICIPATION.] To develop a community-based 102.11 planning process with broad citizen participation in order to 102.12 build local capacity to plan for sustainable development and to 102.13 benefit from the insights, knowledge, and support of local 102.14 residents. The process must include at least one citizen from 102.15 each affected unit of local government; 102.16 (2) [COOPERATION.] To promote cooperation among communities 102.17 to work towards the most efficient, planned, and cost-effective 102.18 delivery of government services by, among other means, 102.19 facilitating cooperative agreements among adjacent communities 102.20 and to coordinate planning to ensure compatibility of one 102.21 community's development with development of neighboring 102.22 communities; 102.23 (3) [ECONOMIC DEVELOPMENT.] To create sustainable economic 102.24 development strategies and provide economic opportunities 102.25 throughout the state that will achieve a balanced distribution 102.26 of growth statewide; 102.27 (4) [CONSERVATION.] To protect, preserve, and enhance the 102.28 state's resources, including agricultural land, forests, surface 102.29 water and groundwater, recreation and open space, scenic areas, 102.30 and significant historic and archaeological sites; 102.31 (5) [LIVABLE COMMUNITY DESIGN.] To strengthen communities 102.32 by following the principles of livable community design in 102.33 development and redevelopment, including integration of all 102.34 income and age groups, mixed land uses and compact development, 102.35 affordable and life-cycle housing, green spaces, access to 102.36 public transit, bicycle and pedestrian ways, and enhanced 103.1 aesthetics and beauty in public spaces; 103.2 (6) [HOUSING.] To provide and preserve an adequate supply 103.3 of affordable and life-cycle housing throughout the state; 103.4 (7) [TRANSPORTATION.] To focus on the movement of people 103.5 and goods, rather than on the movement of automobiles, in 103.6 transportation planning, and to maximize the efficient use of 103.7 the transportation infrastructure by increasing the availability 103.8 and use of appropriate public transit throughout the state 103.9 through land-use planning and design that makes public transit 103.10 economically viable and desirable; 103.11 (8) [LAND-USE PLANNING.] To establish a community-based 103.12 framework as a basis for all decisions and actions related to 103.13 land use; 103.14 (9) [PUBLIC INVESTMENTS.] To account for the full 103.15 environmental, social, and economic costs of new development, 103.16 including infrastructure costs such as transportation, sewers 103.17 and wastewater treatment, water, schools, recreation, and open 103.18 space, and plan the funding mechanisms necessary to cover the 103.19 costs of the infrastructure; 103.20 (10) [PUBLIC EDUCATION.] To support research and public 103.21 education on a community's and the state's finite capacity to 103.22 accommodate growth, and the need for planning and resource 103.23 management that will sustain growth; and 103.24 (11) [SUSTAINABLE DEVELOPMENT.] To provide a better quality 103.25 of life for all residents while maintaining nature's ability to 103.26 function over time by minimizing waste, preventing pollution, 103.27 promoting efficiency, and developing local resources to 103.28 revitalize the local economy. 103.29 Sec. 2. [4A.09] [TECHNICAL ASSISTANCE.] 103.30 The office shall provide local governments technical and 103.31 financial assistance in preparing their comprehensive plans to 103.32 meet the community-based planning goals in section 4A.08. 103.33 Sec. 3. [4A.10] [PLAN REVIEW AND COMMENT.] 103.34 The office shall review and comment on community-based 103.35 comprehensive plans prepared by counties, including the 103.36 community-based comprehensive plans of municipalities and towns 104.1 that are incorporated into a county's plan, as required in 104.2 section 394.232, subdivision 3. 104.3 Sec. 4. Minnesota Statutes 1996, section 394.23, is 104.4 amended to read: 104.5 394.23 [COMPREHENSIVE PLAN.] 104.6 The board shall havehas the power and authority to prepare 104.7 and adopt by ordinance, a comprehensive plan. A comprehensive 104.8 plan or plans when adopted by ordinance shallmust be the basis 104.9 for official controls adopted under the provisions of sections 104.10 394.21 to 394.37. 104.11 Sec. 5. [394.232] [COMMUNITY-BASED PLANNING.] 104.12 Subdivision 1. [GENERAL.] Each county is encouraged to 104.13 prepare and implement a community-based comprehensive plan. A 104.14 community-based comprehensive plan is a comprehensive plan that 104.15 is consistent with the goals of community-based planning in 104.16 section 4A.08. 104.17 Subd. 2. [NOTICE AND PARTICIPATION.] Notice must be given 104.18 at the beginning of the community-based comprehensive planning 104.19 process to the office of strategic and long-range planning, the 104.20 department of natural resources, the department of agriculture, 104.21 the department of trade and economic development, the board of 104.22 soil and water resources, the pollution control agency, the 104.23 department of transportation, local government units, and local 104.24 citizens to actively participate in the development of the 104.25 plan. An agency that is invited to participate in the 104.26 development of a local plan but declines to do so and fails to 104.27 participate or to provide written comments during the plan 104.28 development process waives the right during the office's review 104.29 and comment period to submit comments, except for comments 104.30 concerning consistency of the plan with laws and rules 104.31 administered by the agency. In determining the merit of the 104.32 agency comment, the office shall consider the involvement of the 104.33 agency in the development of the plan. 104.34 Subd. 3. [COORDINATION.] A county that prepares a 104.35 community-based comprehensive plan shall coordinate its plan 104.36 with the plans of its neighbors and its constituent 105.1 municipalities and towns in order both to prevent its plan from 105.2 having an adverse impact on other jurisdictions and to 105.3 complement plans of other jurisdictions. The county's 105.4 community-based comprehensive plan must incorporate the 105.5 community-based comprehensive plan of any municipality or town 105.6 in the county prepared in accordance with section 462.3535. A 105.7 county may incorporate a municipal or town community-based 105.8 comprehensive plan by reference. 105.9 Subd. 4. [JOINT PLANNING.] Under the joint exercise of 105.10 powers provisions in section 471.59, a county may establish a 105.11 joint planning district with other counties, municipalities, and 105.12 towns, that are geographically contiguous, to adopt a single 105.13 community-based comprehensive plan for the district. The county 105.14 may delegate its authority to adopt official controls under this 105.15 chapter, to the board of the joint planning district. 105.16 Subd. 5. [REVIEW AND COMMENT.] (a) The county or joint 105.17 planning district shall submit its community-based comprehensive 105.18 plan to the office of strategic and long-range planning for 105.19 review. The plan is deemed approved 60 days after submittal to 105.20 the office, unless the office disagrees with the plan as 105.21 provided in paragraph (c). 105.22 (b) The office may not disapprove a community-based 105.23 comprehensive plan if the office determines that the plan meets 105.24 the requirements of this section. 105.25 (c) If the office disagrees with a community-based 105.26 comprehensive plan or any elements of the plan, the office shall 105.27 notify the county or district in writing of the plan 105.28 deficiencies and suggested changes. Upon receipt of the 105.29 office's written comments, the county or district has 60 days to 105.30 revise the community-based comprehensive plan and resubmit it to 105.31 the office for reconsideration. 105.32 (d) If the county or district refuses to revise the plan or 105.33 the office disagrees with the revised plan, the office shall 105.34 within 60 days notify the county or district that it wishes to 105.35 initiate the dispute resolution process in chapter 572A. 105.36 (e) Within 30 days of notice from the office, the county or 106.1 joint planning district shall notify the office of its intent to 106.2 enter the dispute resolution process. If the county or district 106.3 refuses to enter the dispute resolution process, the county or 106.4 district shall refund any state grant received for 106.5 community-based planning activities through the office. 106.6 Subd. 6. [PLAN UPDATE.] The county board, or the board of 106.7 the joint planning district, shall review and update the 106.8 community-based comprehensive plan periodically, but at least 106.9 every ten years, and submit the updated plan to the office of 106.10 strategic and long-range planning for review and comment. 106.11 Subd. 7. [NO MANDAMUS PROCEEDING.] A mandamus proceeding 106.12 may not be instituted against a county under this section to 106.13 require the county to conform its community-based comprehensive 106.14 plan to be consistent with the community-based planning goals in 106.15 section 4A.08. 106.16 Subd. 8. [PLANNING AUTHORITY.] Nothing in this section 106.17 shall be construed to prohibit or limit a county's authority to 106.18 prepare and adopt a comprehensive plan and official controls 106.19 under this chapter. 106.20 Sec. 6. Minnesota Statutes 1996, section 394.24, 106.21 subdivision 1, is amended to read: 106.22 Subdivision 1. [ADOPTED BY ORDINANCE.] Official controls 106.23 which shall further the purpose and objectives of the 106.24 comprehensive plan and parts thereof shall be adopted by 106.25 ordinance. The comprehensive plan must provide guidelines for 106.26 the timing and sequence of the adoption of official controls to 106.27 ensure planned, orderly, and staged development and 106.28 redevelopment consistent with the comprehensive plan. 106.29 Sec. 7. Minnesota Statutes 1996, section 462.352, 106.30 subdivision 5, is amended to read: 106.31 Subd. 5. [COMPREHENSIVE MUNICIPAL PLAN.] "Comprehensive 106.32 municipal plan" means a compilation of policy statements, goals, 106.33 standards, and maps for guiding the physical, social and 106.34 economic development, both private and public, of the 106.35 municipality and its environs, including air space and 106.36 subsurface areas necessary for mined underground space 107.1 development pursuant to sections 469.135 to 469.141, and may 107.2 include, but is not limited to, the following: statements of 107.3 policies, goals, standards, a land use plan, including proposed 107.4 densities for development, a community facilities plan, a 107.5 transportation plan, and recommendations for plan execution. A 107.6 comprehensive plan represents the planning agency's 107.7 recommendations for the future development of the community. 107.8 Sec. 8. Minnesota Statutes 1996, section 462.352, 107.9 subdivision 6, is amended to read: 107.10 Subd. 6. [LAND USE PLAN.] "Land use plan" means a 107.11 compilation of policy statements, goals, standards, and maps, 107.12 and action programs for guiding the future development of 107.13 private and public property. The term includes a plan 107.14 designating types of uses for the entire municipality as well as 107.15 a specialized plan showing specific areas or specific types of 107.16 land uses, such as residential, commercial, industrial, public 107.17 or semipublic uses or any combination of such uses. A land use 107.18 plan may also include the proposed densities for development. 107.19 Sec. 9. Minnesota Statutes 1996, section 462.352, is 107.20 amended by adding a subdivision to read: 107.21 Subd. 18. [URBAN GROWTH AREA.] "Urban growth area" means 107.22 the identified area around an urban area within which there is a 107.23 sufficient supply of developable land for at least a prospective 107.24 20-year period, based on demographic forecasts and the time 107.25 reasonably required to effectively provide municipal services to 107.26 the identified area. 107.27 Sec. 10. [462.3535] [COMMUNITY-BASED PLANNING.] 107.28 Subdivision 1. [GENERAL.] Each municipality is encouraged 107.29 to prepare and implement a community-based comprehensive 107.30 municipal plan. A community-based comprehensive municipal plan 107.31 is a comprehensive plan that is consistent with the goals of 107.32 community-based planning in section 4A.08. 107.33 Subd. 2. [COORDINATION.] A municipality that prepares a 107.34 community-based comprehensive municipal plan shall coordinate 107.35 its plan with the plans, if any, of the county and the 107.36 municipality's neighbors both in order to prevent the plan from 108.1 having an adverse impact on other jurisdictions and to 108.2 complement the plans of other jurisdictions. The municipality 108.3 shall prepare its plan to be incorporated into the county's 108.4 community-based comprehensive plan, if the county is preparing 108.5 or has prepared one, and shall otherwise assist and cooperate 108.6 with the county in its community-based planning. 108.7 Subd. 3. [JOINT PLANNING.] Under the joint exercise of 108.8 powers provisions in section 471.59, a municipality may 108.9 establish a joint planning district with other municipalities or 108.10 counties that are geographically contiguous, to adopt a single 108.11 community-based comprehensive plan for the district. A 108.12 municipality may delegate its authority to adopt official 108.13 controls under sections 462.351 to 462.364, to the board of the 108.14 joint planning district. 108.15 Subd. 4. [CITIES; URBAN GROWTH AREAS.] (a) The 108.16 community-based comprehensive municipal plan for a statutory or 108.17 home rule charter city, and official controls to implement the 108.18 plan, must at a minimum, address any urban growth area 108.19 identified in a county plan and may establish an urban growth 108.20 area for the urbanized and urbanizing area. The city plan must 108.21 establish a staged process for boundary adjustment to include 108.22 the urbanized or urbanizing area within corporate limits as the 108.23 urban growth area is developed and provided municipal services. 108.24 (b) Within the urban growth area, the plan must provide for 108.25 the staged provision of urban services, including, but not 108.26 limited to, water, wastewater collection and treatment, and 108.27 transportation. 108.28 Subd. 5. [URBAN GROWTH AREA BOUNDARY ADJUSTMENT 108.29 PROCESS.] (a) After an urban growth area has been identified in 108.30 a county or city plan, a city shall negotiate, as part of the 108.31 comprehensive planning process and in coordination with the 108.32 county, an orderly annexation agreement with the townships 108.33 containing the affected unincorporated areas located within the 108.34 identified urban growth area. The agreement shall contain a 108.35 boundary adjustment staging plan that establishes a sequencing 108.36 plan over the subsequent 20-year period for the orderly growth 109.1 of the city based on its reasonably anticipated development 109.2 pattern and ability to extend municipal services into designated 109.3 unincorporated areas located within the identified urban growth 109.4 area. The city shall include the staging plan agreed upon in 109.5 the orderly annexation agreement in its comprehensive plan. 109.6 Upon agreement by the city and town, prior adopted orderly 109.7 annexation agreements may be included as part of the boundary 109.8 adjustment plan and comprehensive plan without regard to whether 109.9 the prior adopted agreement is consistent with this section. 109.10 When either the city or town requests that an existing orderly 109.11 annexation agreement affecting unincorporated areas located 109.12 within an identified or proposed urban growth area be 109.13 renegotiated, the renegotiated plan shall be consistent with 109.14 this section. 109.15 (b) After a city's community-based comprehensive plan is 109.16 approved under this section, the orderly annexation agreement 109.17 shall be filed with the municipal board or its successor 109.18 agency. Thereafter, the city may orderly annex the part or 109.19 parts of the designated unincorporated area according to the 109.20 sequencing plan and conditions contained in the negotiated 109.21 orderly annexation agreement by submitting a resolution to the 109.22 municipal board or its successor agency. The resolution shall 109.23 specify the legal description of the area designated pursuant to 109.24 the staging plan contained in the agreement, a map showing the 109.25 new boundary and its relation to the existing city boundary, a 109.26 description of and schedule for extending municipal services to 109.27 the area, and a determination that all applicable conditions in 109.28 the agreement have been satisfied. Within 30 days of receipt of 109.29 the resolution, the municipal board or its successor shall 109.30 review the resolution and if it finds that the terms and 109.31 conditions of the orderly annexation agreement have been met, 109.32 shall order the annexation. The boundary adjustment shall 109.33 become effective upon issuance of an order by the municipal 109.34 board or its successor. The municipal board or its successor 109.35 shall cause copies of the boundary adjustment order to be mailed 109.36 to the secretary of state, department of revenue, state 110.1 demographer, and the department of transportation. No further 110.2 proceedings under chapter 414 or 572A shall be required to 110.3 accomplish the boundary adjustment. This section provides the 110.4 sole method for annexing unincorporated land within an urban 110.5 growth area, unless the parties agree otherwise. 110.6 (c) If a community-based comprehensive plan is updated, the 110.7 parties shall renegotiate the orderly annexation agreement as 110.8 needed to incorporate the adjustments and shall refile the 110.9 agreement with the municipal board or its successor. 110.10 Subd. 6. [REVIEW BY ADJACENT MUNICIPALITIES; CONFLICT 110.11 RESOLUTION.] Before a community-based comprehensive municipal 110.12 plan is incorporated into the county's plan under section 110.13 394.232, subdivision 3, a municipality's community-based 110.14 comprehensive municipal plan must be coordinated with adjacent 110.15 municipalities within the county. As soon as practical after 110.16 the development of a community-based comprehensive municipal 110.17 plan, the municipality shall provide a copy of the draft plan to 110.18 adjacent municipalities within the county for review and 110.19 comment. An adjacent municipality has 30 days after receipt to 110.20 review the plan and submit written comments. 110.21 Subd. 7. [COUNTY REVIEW.] (a) If a city does not plan for 110.22 growth beyond its current boundaries, the city shall submit its 110.23 community-based comprehensive municipal plan to the county for 110.24 review and comment. A county has 60 days after receipt to 110.25 review the plan and submit written comments to the city. The 110.26 city may amend its plan based upon the county's comments. 110.27 (b) If a town prepares a community-based comprehensive 110.28 plan, it shall submit the plan to the county for review and 110.29 comment. As provided in section 394.33, the town plan may not 110.30 be inconsistent with or less restrictive than the county plan. 110.31 A county has 60 days after receipt to review the plan and submit 110.32 written comments to the town. The town may amend its plan based 110.33 on the county's comment. 110.34 Subd. 8. [COUNTY APPROVAL.] (a) If a city plans for growth 110.35 beyond its current boundaries, the city's proposed 110.36 community-based comprehensive municipal plan and proposed urban 111.1 growth area must be reviewed and approved by the county before 111.2 the plan is incorporated into the county's plan. The county may 111.3 review and provide comments on any orderly annexation agreement 111.4 during the same period of review of a comprehensive plan. 111.5 (b) Upon receipt by the county of a community-based 111.6 comprehensive plan submitted by a city for review and approval 111.7 under this subdivision, the county shall, within 60 days of 111.8 receipt of a city plan, review and approve the plan in 111.9 accordance with this subdivision. The county shall review and 111.10 approve the city plan if it is consistent with the goals stated 111.11 in section 4A.08. 111.12 (c) In the event the county does not approve the plan, the 111.13 county shall submit its comments to the city within 60 days. 111.14 The city may, thereafter, amend the plan and resubmit the plan 111.15 to the county. The county shall have an additional 60 days to 111.16 review and approve a resubmitted plan. In the event the county 111.17 and city are unable to come to agreement, either party may 111.18 initiate the dispute resolution process contained in chapter 111.19 572A. Within 30 days of receiving notice that the other party 111.20 has initiated dispute resolution, the city or county shall send 111.21 notice of its intent to enter dispute resolution. If the city 111.22 refuses to enter the dispute resolution process, it must refund 111.23 any grant received from the county for community-based planning 111.24 activities. 111.25 Subd. 9. [PLAN ADOPTION.] The municipality shall adopt and 111.26 implement the community-based comprehensive municipal plan after 111.27 the office of strategic and long-range planning has reviewed and 111.28 commented on the county's plan that incorporates the 111.29 municipality's plan. The municipality shall thereafter, where 111.30 it deems appropriate, incorporate any comments made by the 111.31 office into its plan and adopt the plan. 111.32 Subd. 10. [NO MANDAMUS PROCEEDING.] A mandamus proceeding 111.33 may not be instituted against a municipality under this section 111.34 to require the municipality to conform its community-based 111.35 comprehensive plan to be consistent with the community-based 111.36 planning goals in section 4A.08. 112.1 Sec. 11. Minnesota Statutes 1996, section 462.357, 112.2 subdivision 2, is amended to read: 112.3 Subd. 2. [GENERAL REQUIREMENTS.] At any time after the 112.4 adoption of a land use plan for the municipality, the planning 112.5 agency, for the purpose of carrying out the policies and goals 112.6 of the land use plan, may prepare a proposed zoning ordinance 112.7 and submit it to the governing body with its recommendations for 112.8 adoption. Subject to the requirements of subdivisions 3, 4 and 112.9 5, the governing body may adopt and amend a zoning ordinance by 112.10 a two-thirds vote of all its members. If the comprehensive112.11 municipal plan is in conflict with the zoning ordinance, the112.12 zoning ordinance supersedes the plan.The plan must provide 112.13 guidelines for the timing and sequence of the adoption of 112.14 official controls to ensure planned, orderly, and staged 112.15 development and redevelopment consistent with the plan. 112.16 Sec. 12. [473.1455] [METROPOLITAN DEVELOPMENT GUIDE 112.17 GOALS.] 112.18 The metropolitan council shall amend the metropolitan 112.19 development guide, as necessary, to reflect and implement the 112.20 community-based planning goals in section 4A.08. The office of 112.21 strategic and long-range planning shall review and comment on 112.22 the metropolitan development guide. The council may not approve 112.23 local comprehensive plans or plan amendments after July 1, 1999, 112.24 until the metropolitan council has received and considered the 112.25 comments of the office of strategic and long-range planning. 112.26 Sec. 13. [ADVISORY COUNCIL ON COMMUNITY-BASED PLANNING.] 112.27 Subdivision 1. [ESTABLISHMENT; PURPOSE.] An advisory 112.28 council on community-based planning is established to provide a 112.29 forum for discussion and development of the framework for 112.30 community-based planning and the incentives and tools to 112.31 implement the plans. 112.32 Subd. 2. [DUTIES.] The advisory council shall propose 112.33 legislation for the 1998 legislative session relating to the 112.34 framework to implement community-based planning. The advisory 112.35 council shall: 112.36 (1) develop a model process to involve citizens in 113.1 community-based planning from the beginning of the planning 113.2 process; 113.3 (2) hold meetings statewide to solicit advice and 113.4 information on how to implement community-based planning; 113.5 (3) develop specific, measurable criteria by which plans 113.6 will be reviewed for consistency with the goals in Minnesota 113.7 Statutes, section 4A.08, and commented on by the office of 113.8 strategic and long-range planning; 113.9 (4) recommend a procedure for review and comment on 113.10 community-based plans; 113.11 (5) recommend a process for coordination of plans among 113.12 local jurisdictions; 113.13 (6) recommend an alternative dispute resolution method for 113.14 citizens and local governments to use to challenge proposed 113.15 plans or the implementation of plans; 113.16 (7) recommend incentives to encourage state agencies to 113.17 implement the goals of community-based planning; 113.18 (8) recommend incentives for local governments to develop 113.19 community-based plans, including for example, assistance with 113.20 computerized geographic information systems, builders' remedies 113.21 and density bonuses, and revised permitting processes; 113.22 (9) describe the tools and strategies that a county, city, 113.23 or town may use to achieve the goals, including, but not limited 113.24 to, densities, urban growth areas, purchase or transfer of 113.25 development rights programs, public investment surcharges, 113.26 transit and transit-oriented development, and zoning and other 113.27 official controls; 113.28 (10) recommend the time frame in which the community-based 113.29 plans must be completed; 113.30 (11) consider the need for ongoing stewardship and 113.31 oversight of sustainable development initiatives and the 113.32 community-based planning process; 113.33 (12) review and recommend changes to the community-based 113.34 planning framework established in this act; and 113.35 (13) make other recommendations to implement 113.36 community-based planning as the advisory council determines 114.1 would be necessary or helpful in achieving the goals. 114.2 Subd. 3. [MEMBERSHIP.] The advisory council consists of 18 114.3 voting members who serve at the pleasure of the appointing 114.4 authority as follows: 114.5 (1) two members of the majority caucus of the house of 114.6 representatives appointed by the speaker, and two members of the 114.7 minority caucus appointed by the minority leader; 114.8 (2) four members of the senate appointed by the 114.9 subcommittee on committees of the committee on rules and 114.10 administration of the senate, two of whom shall be members of 114.11 the minority caucus; 114.12 (3) the director, or the director's designee, of the office 114.13 of strategic and long-range planning; 114.14 (4) three public members, at least one of whom must be 114.15 knowledgeable about and have experience in local government 114.16 issues or planning, appointed by the speaker of the house of 114.17 representatives; 114.18 (5) three public members, at least one of whom must be 114.19 knowledgeable about and have experience in local government 114.20 issues or planning, appointed by the subcommittee on committees 114.21 of the committee on rules and administration of the senate; and 114.22 (6) three public members, at least one of whom must be 114.23 knowledgeable about and have experience in local government 114.24 issues or planning, appointed by the governor. 114.25 The commissioners, or their designees, of the departments 114.26 of natural resources, agriculture, transportation, and trade and 114.27 economic development, and the chair, or the chair's designee, of 114.28 the metropolitan council shall serve as ex-officio members. 114.29 The advisory council may form an executive committee to 114.30 facilitate the work of the council. 114.31 Subd. 4. [FIRST MEETING; CHAIR.] The director of the 114.32 office of strategic and long-range planning, or the director's 114.33 designee, shall convene the first meeting of the advisory 114.34 council. At its first meeting, the advisory council shall 114.35 select from among its members a person to serve as chair. 114.36 Subd. 5. [ADMINISTRATION.] The office of strategic and 115.1 long-range planning, with assistance from other state agencies 115.2 and the metropolitan council as needed, shall provide 115.3 administrative and staff assistance to the advisory council. 115.4 The attorney general shall provide advice on legal issues to the 115.5 advisory council. 115.6 Subd. 6. [EXPENSES.] The office of strategic and 115.7 long-range planning shall compensate members of the advisory 115.8 council. Members shall receive per diem and expenses as 115.9 provided by Minnesota Statutes, section 15.059, subdivision 3. 115.10 Subd. 7. [EXPIRATION.] This section expires June 30, 1998. 115.11 Sec. 14. [CITATION.] 115.12 Sections 1 to 13 may be cited as the "Community-based 115.13 Planning Act." 115.14 Sec. 15. [APPLICATION.] 115.15 Section 12 applies in the counties of Anoka, Carver, 115.16 Dakota, Hennepin, Ramsey, Scott, and Washington. 115.17 Sec. 16. [PILOT PROJECTS ESTABLISHED.] 115.18 The office of strategic and long-range planning shall 115.19 establish community-based comprehensive land use planning pilot 115.20 projects as specified in sections 17 to 21. 115.21 Sec. 17. [PLAN SUBMITTAL; REVIEW.] 115.22 A county or joint planning district participating in a 115.23 pilot project must prepare a community-based comprehensive plan 115.24 as specified in Minnesota Statutes, section 394.232. The county 115.25 or joint powers board must submit the plan to the office of 115.26 strategic and long-range planning within 24 months of the 115.27 county's or district's selection as a pilot project. The office 115.28 shall review each plan to determine if it is consistent with the 115.29 community-based planning goals in Minnesota Statutes, section 115.30 4A.08. The office shall complete its review and comment as 115.31 specified in Minnesota Statutes, section 394.232, subdivision 5. 115.32 Sec. 18. [PLAN CONTENT.] 115.33 Subdivision 1. [GOALS.] The plan must address the 115.34 community-based planning goals in Minnesota Statutes, section 115.35 4A.08. 115.36 Subd. 2. [MUNICIPAL AND TOWN PLAN INCORPORATION.] The plan 116.1 must incorporate the community-based comprehensive plan of each 116.2 municipality and town in the county. Incorporation of a 116.3 municipal or town plan is sufficient if the county or joint 116.4 powers board adopts a resolution approving and incorporating by 116.5 reference the plan or any subsequent amendments to the plan. 116.6 Subd. 3. [URBAN GROWTH AREAS.] The plan must identify, 116.7 establish, and address urban growth areas, as defined in 116.8 Minnesota Statutes, section 462.352, subdivision 18, within the 116.9 county. The land outside an urban growth area must be zoned as 116.10 permanent rural or agricultural land, or other appropriate land 116.11 use, and must be maintained at density levels consistent with 116.12 those uses. The plan must also identify the density at which 116.13 the municipality wishes to develop. 116.14 Subd. 4. [EXISTING PLANS.] If the county has a previously 116.15 adopted plan, the county board or joint powers board shall 116.16 review, update, and submit to the office of strategic and 116.17 long-range planning a revised plan and official controls meeting 116.18 the requirements of this section, including the community-based 116.19 comprehensive municipal plan for each municipality or town in 116.20 the county, if any, within 24 months of the county's or 116.21 district's selection as a pilot project. 116.22 Sec. 19. [COORDINATION WITH ADJACENT COUNTIES.] 116.23 Before submitting the community-based comprehensive plan to 116.24 the office of strategic and long-range planning, the county or 116.25 joint powers board shall coordinate its plan with adjacent 116.26 counties. The adjacent counties shall review and submit written 116.27 comments on the proposed plan to the board within 60 days of 116.28 receiving the plan. 116.29 Sec. 20. [COORDINATION WITH METROPOLITAN COUNCIL.] 116.30 A county or joint planning district adjacent to the 116.31 metropolitan area shall coordinate its plan with the 116.32 metropolitan council, in relation to the council's development 116.33 guide. 116.34 The county or joint planning district shall not submit its 116.35 plan to the office of strategic and long-range planning until 116.36 the metropolitan council has had 60 days for review and comment 117.1 on the plan. 117.2 Sec. 21. [LIMITATION ON PLAN AMENDMENT.] 117.3 The county or joint powers board shall not amend its plan 117.4 for an area inside an urban growth area that is outside a 117.5 municipality's jurisdiction without the municipality's approval. 117.6 Sec. 22. [EFFECTIVE DATE.] 117.7 This article is effective the day following final enactment. 117.8 ARTICLE 5 117.9 MUNICIPAL BOARD 117.10 Section 1. Minnesota Statutes 1996, section 115.49, is 117.11 amended by adding a subdivision to read: 117.12 Subd. 2a. [EXTENSION OF SERVICE.] If a determination or 117.13 order is made by the pollution control agency under this section 117.14 that cooperation by contract is necessary and feasible between a 117.15 municipality and an unincorporated area located outside the 117.16 existing corporate limits of a municipality, the municipality 117.17 being required to provide or extend through a contract a 117.18 governmental service to an unincorporated area, during the 117.19 statutory 90-day period provided in this section to formulate a 117.20 contract, may in the alternative to formulating a service 117.21 contract to provide or extend the service, declare the 117.22 unincorporated area as described in the pollution control 117.23 agency's determination letter or order annexed to the 117.24 municipality under section 414.0335. 117.25 Sec. 2. Minnesota Statutes 1996, section 414.0325, 117.26 subdivision 1, is amended to read: 117.27 Subdivision 1. [INITIATING THE PROCEEDING.] One or more 117.28 townships and one or more municipalities, by joint resolution, 117.29 may designate an unincorporated area as in need of orderly 117.30 annexation. The joint resolution will confer jurisdiction on 117.31 the board over annexations in the designated area and over the 117.32 various provisions in said agreement by submission of said joint 117.33 resolution to the executive director. The resolution shall 117.34 include a description of the designated area and the reasons for 117.35 designation. Thereafter, an annexation of any part of the 117.36 designated area may be initiated by: 118.1 (1) submitting to the executive director a resolution of 118.2 any signatory to the joint resolution; or 118.3 (2) the board of its own motion ; or118.4 (3) as provided in section 414.033, subdivision 2a. 118.5 Whenever the pollution control agency or othera state 118.6 agency pursuant to sections 115.03, 115.071, 115.49, or any law118.7 giving a state agency similar powersother than the pollution 118.8 control agency, orders a municipality to extend a municipal 118.9 service to an area, such an order will confer jurisdiction on 118.10 the Minnesota municipal board to consider designation of the 118.11 area for orderly annexation. 118.12 If a joint resolution designates an area as in need of 118.13 orderly annexation and states that no alteration of its stated 118.14 boundaries is appropriate, the board may review and comment, but 118.15 may not alter the boundaries. 118.16 If a joint resolution designates an area as in need of 118.17 orderly annexation, provides for the conditions for its 118.18 annexation, and states that no consideration by the board is 118.19 necessary, the board may review and comment, but shall, within 118.20 30 days, order the annexation in accordance with the terms of 118.21 the resolution. 118.22 Sec. 3. Minnesota Statutes 1996, section 414.033, 118.23 subdivision 2b, is amended to read: 118.24 Subd. 2b. [NOTICE REQUIRED.] Before a municipality may 118.25 adopt an ordinance under subdivision 2, clause (2), (3), or (4), 118.26 or subdivision 2a,a municipality must hold a public hearing and 118.27 give 30 days' written notice by certified mail to the town or 118.28 towns affected by the proposed ordinance and to all landowners 118.29 within and contiguous to the area to be annexed. 118.30 Sec. 4. Minnesota Statutes 1996, section 414.033, 118.31 subdivision 11, is amended to read: 118.32 Subd. 11. [FLOODPLAIN; SHORELAND AREA.] When a 118.33 municipality declares land annexed to the municipality under 118.34 subdivision 2, clause (3), or subdivision 2a,and the land is 118.35 within a designated floodplain, as provided by section 103F.111, 118.36 subdivision 4, or a shoreland area, as provided by section 119.1 103F.205, subdivision 4, the municipality shall adopt or amend 119.2 its land use controls to conform to chapter 103F, and any new 119.3 development of the annexed land shall be subject to chapter 103F. 119.4 Sec. 5. Minnesota Statutes 1996, section 414.033, 119.5 subdivision 12, is amended to read: 119.6 Subd. 12. [PROPERTY TAXES.] When a municipality annexes 119.7 land under subdivision 2, clause (2), (3), or (4), or119.8 subdivision 2a,property taxes payable on the annexed land shall 119.9 continue to be paid to the affected town or towns for the year 119.10 in which the annexation becomes effective. Thereafter, property 119.11 taxes on the annexed land shall be paid to the municipality. In 119.12 the first year following the year the land was annexed, the 119.13 municipality shall make a cash payment to the affected town or 119.14 towns in an amount equal to 90 percent of the property taxes 119.15 paid in the year the land was annexed; in the second year, an 119.16 amount equal to 70 percent of the property taxes paid in the 119.17 year the land was annexed; in the third year, an amount equal to 119.18 50 percent of the property taxes paid in the year the land was 119.19 annexed; in the fourth year, an amount equal to 30 percent of 119.20 the property taxes paid in the year the land was annexed; and in 119.21 the fifth year, an amount equal to ten percent of the property 119.22 taxes paid in the year the land was annexed. The municipality 119.23 and the affected township may agree to a different payment. 119.24 Sec. 6. [414.0335] [ORDERED GOVERNMENTAL SERVICE 119.25 EXTENSION; ANNEXATION BY ORDINANCE.] 119.26 If a determination or order by the pollution control 119.27 agency, under section 115.49 or other similar statute is made, 119.28 that cooperation by contract is necessary and feasible between a 119.29 municipality and an unincorporated area located outside the 119.30 existing corporate limits of a municipality, the municipality 119.31 required to provide or extend through a contract a governmental 119.32 service to an unincorporated area, during the statutory 90-day 119.33 period provided in section 115.49 to formulate a contract, may 119.34 in the alternative to formulating a service contract to provide 119.35 or extend the service, declare the unincorporated area described 119.36 in the pollution control agency's determination letter or order 120.1 annexed to the municipality by adopting an ordinance and 120.2 submitting it to the municipal board or its successor. The 120.3 municipal board or its successor may review and comment on the 120.4 ordinance but shall approve the ordinance within 30 days of 120.5 receipt. The ordinance is final and the annexation is effective 120.6 on the date the municipal board or its successor approves the 120.7 ordinance. Thereafter, the city shall amend its comprehensive 120.8 plan and official controls in accordance with chapter 462. 120.9 Sec. 7. [414.10] [ALTERNATIVE PROCESS OF DISPUTE 120.10 RESOLUTION.] 120.11 Subdivision 1. [DEFINITION.] For the purposes of 120.12 subdivision 2, a "party" or "parties" means a property owner or 120.13 the governing body or town board of a jurisdiction that files an 120.14 initiating document or a timely objection pursuant to this 120.15 chapter, and the governing body or town board of the 120.16 jurisdiction or jurisdictions in which the subject area is 120.17 located. 120.18 Subd. 2. [CHAPTER 572A PROCESS.] As an alternative to the 120.19 procedure provided by this chapter, a party filing an initiating 120.20 document or timely objection with the municipal board may file 120.21 with the bureau of mediation services a written request for 120.22 mediation within 30 days of the filing as provided in section 120.23 572A.015. The request for mediation must contain the written 120.24 consent of all parties to have the dispute settled through the 120.25 process provided by chapter 572A. The filing party must also 120.26 file written notice with the municipal board notifying the board 120.27 that all parties have agreed to use the dispute resolution 120.28 process in chapter 572A. 120.29 Sec. 8. [414.11] [MUNICIPAL BOARD SUNSET.] 120.30 The municipal board shall terminate on December 31, 1999, 120.31 and all of its authority and duties under this chapter shall be 120.32 transferred to the office of strategic and long-range planning 120.33 according to section 15.039. 120.34 Sec. 9. [REPEALER.] 120.35 Minnesota Statutes 1996, section 414.033, subdivision 2a, 120.36 is repealed. 121.1 Sec. 10. [EFFECTIVE DATE.] 121.2 Sections 1 to 8 are effective the day following final 121.3 enactment. Section 9 is effective July 1, 1997. 121.4 ARTICLE 6 121.5 DISPUTE RESOLUTION 121.6 Section 1. [572A.01] [COMPREHENSIVE PLANNING DISPUTES; 121.7 MEDIATION.] 121.8 Subdivision 1. [FILING.] In the event of a dispute between 121.9 a county and the office of strategic and long-range planning 121.10 under section 394.232 or a county and a city under section 121.11 462.3535, regarding the development, content, or approval of a 121.12 community-based comprehensive land use plan, an aggrieved party 121.13 may file a written request for mediation, as provided in 121.14 subdivision 2, with the bureau of mediation services at any time 121.15 prior to a final action on a community-based comprehensive plan 121.16 or within 30 days of a final action on a community-based 121.17 comprehensive plan. 121.18 Subd. 2. [MEDIATION.] Within ten days of receiving a 121.19 request for mediation in subdivision 1, the bureau of mediation 121.20 services shall provide written notice of the request for 121.21 mediation to the parties and provide a list of neutrals 121.22 experienced in land use planning or local government issues 121.23 obtained from the supreme court, Minnesota municipal board, 121.24 bureau of mediation services, Minnesota state bar association, 121.25 Hennepin county bar association, office of dispute resolution, 121.26 and others. Within 30 days thereafter, the affected parties 121.27 shall select a mediator from the list of neutrals or someone 121.28 else acceptable to the parties and submit to mediation for a 121.29 period of 30 days facilitated by the bureau. If the dispute 121.30 remains unresolved after the close of the 30-day mediation 121.31 period, the bureau shall prepare a report of its recommendations 121.32 and transmit the report within 30 days to the parties. Within 121.33 60 days after the date of issuance of the mediator's report, the 121.34 dispute shall be submitted to binding arbitration as provided in 121.35 this chapter. The mediator's report submitted to the parties is 121.36 informational only and is not admissible in arbitration. 122.1 Sec. 2. [572A.015] [CHAPTER 414 DISPUTES; MEDIATION.] 122.2 Subdivision 1. [FILING.] As provided by section 414.10, if 122.3 an initiating document or timely objection under chapter 414 is 122.4 filed with the municipal board, the filing party, jurisdiction, 122.5 or jurisdictions may also file a written request for mediation 122.6 with the bureau of mediation services within 30 days of filing 122.7 the initiating document or timely objection. The request for 122.8 mediation must contain the written consent to the mediation and 122.9 arbitration process by all the parties, as defined in section 122.10 414.10, subdivision 1. 122.11 Subd. 2. [MEDIATION.] Within ten days of receiving a 122.12 request for mediation, the bureau shall provide written notice 122.13 of the request for mediation to the parties and provide a list 122.14 of neutrals experienced in land use planning and local 122.15 government issues obtained from the supreme court, Minnesota 122.16 municipal board, bureau of mediation services, Minnesota state 122.17 bar association, Hennepin county bar association, office of 122.18 dispute resolution and others. Within 30 days thereafter, the 122.19 affected parties, as defined in section 414.10, subdivision 1, 122.20 shall select a mediator from the list of neutrals or someone 122.21 else acceptable to the parties and submit to mediation for a 122.22 period of 30 days facilitated by the bureau. If the dispute 122.23 remains unresolved after the close of the 30-day mediation 122.24 period, the bureau shall prepare a report of its recommendations 122.25 and transmit the report within 30 days to the parties. Within 122.26 60 days after the date of issuance of the mediator's report, the 122.27 dispute shall be submitted to binding arbitration as provided in 122.28 this chapter. The mediator's report submitted to the parties is 122.29 informational only and is not admissible in arbitration. 122.30 Sec. 3. [572A.02] [ARBITRATION.] 122.31 Subdivision 1. [SUBMITTAL TO BINDING ARBITRATION.] If a 122.32 dispute remains unresolved after the close of mediation, the 122.33 dispute shall be submitted to binding arbitration within 60 days 122.34 of issuance of the mediation report pursuant to the terms of 122.35 this section and the Uniform Arbitration Act, sections 122.36 572.08-572.30, except the period may be extended for an 123.1 additional 15 days as provided in this section. In the event of 123.2 a conflict between the provisions of the Uniform Arbitration Act 123.3 and this section, this section controls. 123.4 Subd. 2. [APPOINTMENT OF PANEL.] (a) The parties shall 123.5 each appoint one qualified arbitrator within 30 days of issuance 123.6 of the mediation report. If a party does not appoint an 123.7 arbitrator within 30 days, the bureau of mediation services 123.8 shall appoint a qualified arbitrator from the list of neutrals 123.9 under sections 572A.01, subdivision 2, and 572A.015, subdivision 123.10 2, or someone else for the party. The parties shall notify the 123.11 bureau prior to the close of the 30-day appointment period of 123.12 the name and address of their respective appointed arbitrator. 123.13 Each party is responsible for the fees and expenses for the 123.14 arbitrator it selects. 123.15 (b) After appointment of the two arbitrators to the 123.16 arbitration panel by the parties, or by the bureau should one or 123.17 both of the parties fail to act, the two appointed arbitrators 123.18 shall appoint a third arbitrator who must be learned in the law, 123.19 within 15 days of the close of the initial 30-day arbitrator 123.20 appointment period. If the arbitrators cannot agree on the 123.21 selection of the third arbitrator within 15 days, the 123.22 arbitrators shall jointly submit a request to the district court 123.23 of the county in which the disputed area is located in 123.24 accordance with the selection procedures established in section 123.25 572.10. Within 15 days of receipt of an application by the 123.26 district court, the district court shall select a neutral 123.27 arbitrator and notify the parties and the bureau of mediation 123.28 services of the name and address of the selected arbitrator. 123.29 The fees and expenses of the third arbitrator shall be shared 123.30 equally by the parties. The third appointed arbitrator shall 123.31 act as chair of the arbitration panel and shall conduct the 123.32 proceedings. If the district court selects the third 123.33 arbitrator, the date required for first hearing the matter may 123.34 be extended an additional 15 days. 123.35 Subd. 3. [HEARING.] Except as otherwise provided, within 123.36 60 days, the matter must be brought on for hearing in accordance 124.1 with section 572.12. The bureau of mediation services shall 124.2 provide for the proceedings to occur in the county in which the 124.3 majority of the affected property is located. 124.4 Subd. 4. [CONTRACTS; INFORMATION.] The arbitration panel 124.5 shall have authority to contract with regional, state, county, 124.6 or local planning commissions or to hire expert consultants to 124.7 provide specialized information and assistance. Any member of 124.8 the panel conducting or participating in any hearing shall have 124.9 the power to administer oaths and affirmations, to issue 124.10 subpoenas, to compel the attendance and testimony of witnesses, 124.11 and the production of papers, books, and documents. Any costs 124.12 related to this subdivision shall be shared equally by the 124.13 parties. 124.14 Subd. 5. [DECISION FACTORS.] In comprehensive planning 124.15 disputes, the arbitration panel shall consider the goals stated 124.16 in section 4A.08 and the following factors in making a 124.17 decision. In all other disputes brought under this section, the 124.18 arbitration panel shall consider the following factors in making 124.19 a decision: 124.20 (1) present population and number of households, past 124.21 population, and projected population growth of the subject area 124.22 and adjacent units of local government; 124.23 (2) quantity of land within the subject area and adjacent 124.24 units of local government; and natural terrain including 124.25 recognizable physical features, general topography, major 124.26 watersheds, soil conditions, and such natural features as 124.27 rivers, lakes and major bluffs; 124.28 (3) degree of contiguity of the boundaries between the 124.29 municipality and the subject area; 124.30 (4) present pattern of physical development, planning, and 124.31 intended land uses in the subject area and the municipality 124.32 including residential, industrial, commercial, agricultural, and 124.33 institutional land uses and the impact of the proposed action on 124.34 those land uses; 124.35 (5) the present transportation network and potential 124.36 transportation issues, including proposed highway development; 125.1 (6) land use controls and planning presently being utilized 125.2 in the municipality and the subject area, including 125.3 comprehensive plans for development in the area and plans and 125.4 policies of the metropolitan council, and whether there are 125.5 inconsistencies between proposed development and existing land 125.6 use controls and the reasons therefore; 125.7 (7) existing levels of governmental services being provided 125.8 in the municipality and the subject area, including water and 125.9 sewer service, fire rating and protection, law enforcement, 125.10 street improvements and maintenance, administrative services, 125.11 and recreational facilities and the impact of the proposed 125.12 action on the delivery of said services; 125.13 (8) existing or potential environmental problems and 125.14 whether the proposed action is likely to improve or resolve 125.15 these problems; 125.16 (9) plans and programs by the municipality for providing 125.17 needed governmental services to the subject area; 125.18 (10) an analysis of the fiscal impact on the municipality, 125.19 the subject area, and adjacent units of local government, 125.20 including net tax capacity and the present bonded indebtedness, 125.21 and the local tax rates of the county, school district, and 125.22 township; 125.23 (11) relationship and effect of the proposed action on 125.24 affected and adjacent school districts and communities; 125.25 (12) adequacy of town government to deliver services to the 125.26 subject area; 125.27 (13) analysis of whether necessary governmental services 125.28 can best be provided through the proposed action or another type 125.29 of boundary adjustment; and 125.30 (14) if only a part of a township is annexed, the ability 125.31 of the remainder of the township to continue or the feasibility 125.32 of it being incorporated separately or being annexed to another 125.33 municipality. 125.34 Any party to the proceeding may present evidence and testimony 125.35 on any of the above factors at the hearing on the matter. 125.36 Subd. 6. [DECISION.] The arbitrators, after a hearing on 126.1 the matter, shall make a decision regarding the dispute within 126.2 60 days and transmit an order to the parties and the office of 126.3 strategic and long-range planning or the municipal board. 126.4 Unless appealed by an aggrieved party within 30 days of receipt 126.5 of the arbitration panel's order by the municipal board, the 126.6 municipal board shall execute an order in accordance with the 126.7 arbitration panel's order and shall cause copies of the same to 126.8 be mailed to all parties entitled to mailed notice, the 126.9 secretary of state, the department of revenue, the state 126.10 demographer, individual property owners if initiated in that 126.11 manner, the affected county auditor, and any other party of 126.12 record. The affected county auditor shall record the order 126.13 against the affected property. 126.14 Sec. 4. [572A.03] [ARBITRATION PANEL DECISION STANDARDS.] 126.15 Subdivision 1. [DECISION STANDARDS.] The arbitration 126.16 panel, based upon the factors in section 572A.02, subdivision 5, 126.17 shall decide the matter based upon the decision standards in 126.18 subdivisions 2 to 6. 126.19 Subd. 2. [COMPREHENSIVE LAND USE PLANNING.] For 126.20 comprehensive land use planning disputes under section 462.3535, 126.21 if a community-based comprehensive plan addresses the goals of 126.22 section 4A.08 and the arbitrators find that the city's projected 126.23 estimates found in its comprehensive plan are reasonable with 126.24 respect to an identified urban growth area, the arbitration 126.25 panel may order approval of the city plan. If the order is to 126.26 approve the community-based comprehensive plan, the order shall 126.27 contain notice directing the county to approve the city plan 126.28 within ten days of receipt of the arbitration order. The city 126.29 shall, thereafter, adopt the plan. If the order is to deny the 126.30 plan, the arbitration order shall state the reasons for the 126.31 denial in the order and transmit the order to the city, county, 126.32 and the office of strategic and long-range planning. The city 126.33 shall within 30 days of receipt of the order amend its plan and 126.34 resubmit the plan to the county for review and approval under 126.35 this subdivision. The county shall not unreasonably withhold 126.36 approval of the plan if the resubmitted city plan is in keeping 127.1 with the arbitration panel's order. 127.2 Subd. 3. [MUNICIPAL INCORPORATIONS.] For municipal 127.3 incorporations under section 414.02, the arbitration panel may 127.4 order the incorporation if it finds that: (1) the property to 127.5 be incorporated is now, or is about to become, urban or suburban 127.6 in character; (2) that the existing township form of government 127.7 is not adequate to protect the public health, safety, and 127.8 welfare; or (3) the proposed incorporation would be in the best 127.9 interests of the area under consideration. The panel may deny 127.10 the incorporation if the area, or a part of it, would be better 127.11 served by annexation to an adjacent municipality. The panel may 127.12 alter the boundaries of the proposed incorporation by increasing 127.13 or decreasing the area to be incorporated so as to include only 127.14 that property which is now, or is about to become, urban or 127.15 suburban in character, or may exclude property that may be 127.16 better served by another unit of government. The panel may also 127.17 alter the boundaries of the proposed incorporation so as to 127.18 follow visible, clearly recognizable physical features for 127.19 municipal boundaries. In all cases, the panel shall set forth 127.20 the factors which are the basis for the decision. 127.21 Subd. 4. [ANNEXATIONS OF UNINCORPORATED PROPERTY.] For 127.22 annexations of unincorporated property under section 414.031 or 127.23 414.033, subdivisions 3 and 5, the arbitration panel may order 127.24 the annexation: (1) if it finds that the subject area is now, 127.25 or is about to become, urban or suburban in character; (2) if it 127.26 finds that municipal government in the area proposed for 127.27 annexation is required to protect the public health, safety, and 127.28 welfare; or (3) if it finds that the annexation would be in the 127.29 best interest of the subject area. If only a part of a township 127.30 is to be annexed, the panel shall consider whether the remainder 127.31 of the township can continue to carry on the functions of 127.32 government without undue hardship. The panel shall deny the 127.33 annexation if it finds that the increase in revenues for the 127.34 annexing municipality bears no reasonable relation to the 127.35 monetary value of benefits conferred upon the annexed area. The 127.36 panel may deny the annexation: (1) if it appears that 128.1 annexation of all or a part of the property to an adjacent 128.2 municipality would better serve the interests of the residents 128.3 of the property; or (2) if the remainder of the township would 128.4 suffer undue hardship. 128.5 The panel may alter the boundaries of the area to be 128.6 annexed by increasing or decreasing the area so as to include 128.7 only that property which is now or is about to become urban or 128.8 suburban in character or to add property of that character 128.9 abutting the area proposed for annexation in order to preserve 128.10 or improve the symmetry of the area, or to exclude property that 128.11 may better be served by another unit of government. The panel 128.12 may also alter the boundaries of the proposed annexation so as 128.13 to follow visible, clearly recognizable physical features. If 128.14 the panel determines that part of the area would be better 128.15 served by another municipality or township, the panel may 128.16 initiate and approve annexation on its own motion by conducting 128.17 further hearings. In all cases, the arbitration panel shall set 128.18 forth the factors that are the basis for the decision. 128.19 Subd. 5. [ORDERLY ANNEXATIONS WITHIN A DESIGNATED 128.20 AREA.] For orderly annexations within a designated area under 128.21 section 414.0325, which require a hearing, the arbitration panel 128.22 may order the annexation: (1) if it finds that the subject area 128.23 is now or is about to become urban or suburban in character and 128.24 that the annexing municipality is capable of providing the 128.25 services required by the area within a reasonable time; (2) if 128.26 it finds that the existing township form of government is not 128.27 adequate to protect the public health, safety, and welfare; or 128.28 (3) if it finds that annexation would be in the best interests 128.29 of the subject area. The board may deny the annexation if it 128.30 conflicts with any provision of the joint agreement. The board 128.31 may alter the boundaries of the proposed annexation by 128.32 increasing or decreasing the area so as to include that property 128.33 within the designated area which is in need of municipal 128.34 services or will be in need of municipal services. 128.35 If the annexation is denied, no proceeding for the 128.36 annexation of substantially the same area may be initiated 129.1 within two years from the date of the board's order unless the 129.2 new proceeding is initiated by a majority of the area's property 129.3 owners and the petition is supported by affected parties to the 129.4 resolution. In all cases, the arbitration panel shall set forth 129.5 the factors which are the basis for the decision. 129.6 Subd. 6. [CONSOLIDATION OF MUNICIPALITIES.] For municipal 129.7 consolidations under section 414.041, the arbitration panel 129.8 shall consider and may accept, amend, return to the commission 129.9 for amendment or further study, or reject the commission's 129.10 findings and recommendations based upon the panel's written 129.11 determination of what is in the best interests of the affected 129.12 municipalities. The panel shall order the consolidation if it 129.13 finds that consolidation will be for the best interests of the 129.14 municipalities. In all cases, the arbitration panel shall set 129.15 forth the factors that are the basis for the decision. 129.16 Subd. 7. [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] For 129.17 detachments of property from a municipality under section 129.18 414.06, the arbitration panel may order the detachment if it 129.19 finds that the requisite number of property owners have signed 129.20 the petition if initiated by the property owners, that the 129.21 property is rural in character and not developed for urban 129.22 residential, commercial, or industrial purposes, that the 129.23 property is within the boundaries of the municipality and abuts 129.24 a boundary, that the detachment would not unreasonably affect 129.25 the symmetry of the detaching municipality, and that the land is 129.26 not needed for reasonably anticipated future development. The 129.27 panel shall deny the detachment if it finds that the remainder 129.28 of the municipality cannot continue to carry on the functions of 129.29 government without undue hardship. The panel shall have 129.30 authority to decrease the area of property to be detached and 129.31 may include only a part of the proposed area to be detached. If 129.32 the tract abuts more than one township, it shall become a part 129.33 of each township, being divided by projecting through it the 129.34 boundary line between the townships. The detached area may be 129.35 relieved of the primary responsibility for existing indebtedness 129.36 of the municipality and be required to assume the indebtedness 130.1 of the township of which it becomes a part, in the proportion 130.2 that the panel deems just and equitable considering the amount 130.3 of taxes due and delinquent and the indebtedness of each 130.4 township and the municipality affected, if any, and for what 130.5 purpose the indebtedness was incurred, in relation to the 130.6 benefit inuring to the detached area as a result of the 130.7 indebtedness and the last net tax capacity of the taxable 130.8 property in each township and municipality. 130.9 Subd. 8. [CONCURRENT DETACHMENT AND ANNEXATION OF 130.10 INCORPORATED PROPERTY.] For concurrent detachment and annexation 130.11 of incorporated property under section 414.061, subdivisions 4 130.12 and 5, the arbitration panel shall order the proposed action if 130.13 it finds that it will be for the best interests of the 130.14 municipalities and the property owner. In all cases, the 130.15 arbitration panel shall set forth the factors which are the 130.16 basis for the decision. 130.17 Sec. 5. [EFFECTIVE DATE.] 130.18 This article is effective the day following final enactment.