Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 365-H.F.No. 916 
           An act relating to state government; amending, 
          creating, and deleting various duties of the 
          commissioner of administration; creating the 
          productivity loan fund; providing definitions; 
          requiring interest earned on the revolving fund for 
          vocational rehabilitation of the blind to be credited 
          to the fund; appropriating money; amending Minnesota 
          Statutes 1986, sections 4.31, subdivisions 1, 5, and 
          by adding a subdivision; 14.04; 16B.06, subdivision 4; 
          16B.08, subdivisions 3 and 7; 16B.09, subdivision 1; 
          16B.19, subdivision 6; 16B.29; 16B.39, by adding a 
          subdivision; 16B.51, subdivision 3; 138.17, 
          subdivision 7; 139.19; 248.07, subdivision 8; 645.445, 
          subdivisions 2 and 3; and Laws 1979, chapter 333, 
          section 18; proposing coding for new law in Minnesota 
          Statutes, chapter 16B; repealing Minnesota Statutes 
          1986, sections 16B.39, subdivision 1; and 138.22. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 4.31, 
subdivision 1, is amended to read: 
    Subdivision 1.  There is created in the office of the 
governor commissioner the office of on volunteer services, 
hereafter referred to as "the office."  The office shall be 
under the supervision and administration of an executive 
director to be appointed by the governor commissioner and 
hereinafter referred to as "director."  The director shall be 
regarded as an employee of the governor.  The director shall 
remain in the unclassified service.  The office shall operate as 
a state information center for volunteer programs and needed 
services that could be delivered by volunteer programs.  Any 
person or public or private agency may request information on 
the availability of volunteer programs relating to specific 
services, and may report to the director whenever a volunteer 
program is needed or desired. 
    Sec. 2.  Minnesota Statutes 1986, section 4.31, is amended 
by adding a subdivision to read: 
    Subd. 3a.  The director may charge a fee for services 
provided to state agencies, political subdivisions, private and 
nonprofit organizations, and individuals.  Fees collected by the 
office must be deposited in the state treasury and are 
appropriated to the director for the purposes of this section. 
    Sec. 3.  Minnesota Statutes 1986, section 4.31, subdivision 
5, is amended to read: 
    Subd. 5.  The commissioner of administration shall appoint 
an advisory committee of not more than 21 members, at least one 
member from each economic development region, to advise and make 
recommendations to the commissioner and the director of 
volunteer services.  Notwithstanding this numerical limitation, 
members currently serving on an advisory group to the office of 
volunteer services shall complete their prescribed terms of 
office; thereafter, appointments of successors shall be made so 
as to be consistent with the numerical limitation contained in 
this section.  Membership terms, compensation, removal and 
filling of vacancies of members and expiration of the advisory 
committee shall be as provided in section 15.059; provided, that 
members shall not be eligible for a per diem. 
    Sec. 4.  Minnesota Statutes 1986, section 14.04, is amended 
to read: 
    14.04 [AGENCY ORGANIZATION; GUIDEBOOK.] 
    To assist interested persons dealing with it, each agency 
shall, in a manner prescribed by the commissioner of 
administration, prepare a description of its organization, 
stating the process whereby the public may obtain information or 
make submissions or requests.  The commissioner of 
administration shall publish these descriptions at least in once 
every odd-numbered year four years commencing in 1981 in a 
guidebook of state agencies.  Notice of the publication of the 
guidebook shall be published in the State Register. 
    Sec. 5.  Minnesota Statutes 1986, section 16B.06, 
subdivision 4, is amended to read:  
    Subd. 4.  [SUBJECT TO AUDIT.] A contract or any 
disbursement of public funds to a provider of services or a 
grantee, made by or under the supervision of the commissioner, 
an agency, or any county or unit of local government shall 
include, expressly or impliedly, an audit clause that provides 
that the books, records, documents, and accounting procedures 
and practices of the contractor or other party, relevant to the 
contract or transaction are subject to examination by the 
contracting agency, and either the legislative auditor or the 
state auditor as appropriate.  
    Sec. 6.  Minnesota Statutes 1986, section 16B.08, 
subdivision 3, is amended to read: 
    Subd. 3.  [AUCTION IN LIEU OF BIDS.] The commissioner, in 
lieu of advertising for bids, may sell buildings and other 
personal property owned by the state and not needed for public 
purposes at public auction to the highest responsible bidder.  A 
sale under this subdivision may not be made until publication of 
notice of the sale in a newspaper of general circulation in the 
area where the property is located and any other advertising the 
commissioner directs.  Any of the property may be withdrawn from 
the sale prior to the completion of the sale unless the auction 
has been announced to be without reserve.  If the sale is made 
at public auction a duly licensed auctioneer must be retained to 
conduct the sale.  The auctioneer's fees and other 
administrative costs of the auction must be paid from the 
proceeds from which an amount sufficient to pay them is 
appropriated.  
    Sec. 7.  Minnesota Statutes 1986, section 16B.08, 
subdivision 7, is amended to read: 
    Subd. 7.  [SPECIFIC PURCHASES.] (a) The following may be 
purchased without regard to the competitive bidding requirements 
of this chapter:  
    (1) fiber used in the manufacture of binder twine, ply 
twines, and rope at the state correctional facilities; 
    (2) merchandise for resale at state park refectories or 
facility operations;  
    (3) (2) farm and garden products, which may be sold at the 
prevailing market price on the date of the sale;  
    (4) (3) meat for other state institutions from the 
vocational school maintained at Pipestone by independent school 
district No. 583; and 
    (5) (4) furniture from the Minnesota correctional 
facility-St. Cloud facilities.  
    (b) Supplies, materials, or equipment to be used in the 
operation of a hospital licensed under sections 144.50 to 144.56 
that are purchased under a shared service purchasing arrangement 
whereby more than one hospital purchases supplies, materials, or 
equipment with one or more other hospitals, either through one 
of the hospitals or through another entity, may be purchased 
without regard to the competitive bidding requirements of this 
chapter if the following conditions are met: 
    (1) the hospital's governing authority authorizes the 
arrangement; 
    (2) the shared services purchasing program purchases items 
available from more than one source on the basis of competitive 
bids or competitive quotations of prices; and 
    (3) the arrangement authorizes the hospital's governing 
authority or its representatives to review the purchasing 
procedures to determine compliance with these requirements. 
    Sec. 8.  Minnesota Statutes 1986, section 16B.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LOWEST RESPONSIBLE BIDDER.] All state 
contracts and purchases made by or under the supervision of the 
commissioner or an agency for which competitive bids are 
required must be awarded to the lowest responsible bidder, 
taking into consideration conformity with the specifications, 
terms of delivery, and other conditions imposed in the call for 
bids.  The commissioner may decide which is the lowest 
responsible bidder for all purchases and may use the principles 
of life cycle costing, where appropriate, in determining the 
lowest overall bid.  As to contracts other than for purchases, 
the head of the interested agency shall make the decision, 
subject to the approval of the commissioner.  Any or all bids 
may be rejected.  In a case where competitive bids are required 
and where all bids are rejected, new bids, if solicited, must be 
called for as in the first instance, unless otherwise provided 
by law. 
     Sec. 9.  Minnesota Statutes 1986, section 16B.19, 
subdivision 6, is amended to read: 
    Subd. 6.  [CONTRACTS IN EXCESS OF $200,000; SET-ASIDE.] The 
commissioner as a condition of awarding state procurements for 
construction contracts or approving contracts for consultant, 
professional, or technical services pursuant to section 16B.17 
in excess of $200,000 shall require that at least ten percent of 
the contract award to a prime contractor be subcontracted to a 
business owned and operated by a socially or economically 
disadvantaged person or persons or that at least ten percent of 
the contract award be expended in purchasing materials or 
supplies from said person or persons.  If there is no socially 
or economically disadvantaged person or persons or other small 
businesses able to perform the subcontract or to provide the 
supplies or materials, the construction contract or contract for 
consultant, professional, or technical services may be awarded 
notwithstanding the ten percent requirement provided that the 
ten percent requirement is made up in other such contracts 
awarded or to be awarded by the same agency.  Any subcontracting 
or purchasing of supplies and materials pursuant to this 
subdivision may not be included in determining the total amount 
of awards required by subdivisions 1, 2, and 5.  In the event 
small businesses owned and operated by socially and economically 
disadvantaged persons are unable to perform ten percent of the 
prime contract award, the commissioner shall require that other 
small businesses perform at least ten percent of the prime 
contract award.  The commissioner may determine that small 
businesses owned and operated by socially and economically 
disadvantaged persons are unable to perform at least ten percent 
of the prime contract award prior to the advertising for bids.  
Each construction contractor bidding on a project over $200,000 
shall submit with the bid a list of the businesses owned and 
operated by socially or economically disadvantaged persons that 
are proposed to be utilized on the project with a statement 
indicating the portion of the total bid to be performed by each 
business.  The commissioner shall reject any bid to which this 
subdivision applies that does not contain this information.  
Prime contractors receiving construction contract awards in 
excess of $200,000 shall furnish to the commissioner the name of 
each business owned and operated by a socially or economically 
disadvantaged person or persons or other small business that is 
performing work or supplying supplies and materials on the prime 
contract and the dollar amount of the work performed or to be 
performed or the supplies and materials to be supplied.  Once 
the contract has been awarded, the prime contractor must use the 
socially and economically disadvantaged subcontractors proposed 
to be utilized on the project, unless the subcontractors are 
unable to perform in accordance with the award.  
    This subdivision does not apply to prime contractors that 
are themselves small businesses owned and operated by socially 
or economically disadvantaged persons, as duly certified 
pursuant to section 16B.22. 
    Sec. 10.  Minnesota Statutes 1986, section 16B.29, is 
amended to read: 
    16B.29 [STATE SURPLUS PROPERTY; DISPOSAL.] 
    The commissioner may do any of the following to dispose of 
supplies, materials, and equipment which are surplus, obsolete, 
or unused:  (1) transfer it to or between state agencies; (2) 
transfer it to local government units in Minnesota and other 
institutions and organizations in Minnesota authorized by 
federal law to accept surplus property and charge a fee to cover 
expenses incurred by the commissioner in making the property 
available to these units; or (3) sell it.  The commissioner must 
make proper adjustments in the accounts and appropriations of 
the agencies concerned.  When the commissioner sells the 
supplies, materials and equipment, the proceeds of the sale are 
appropriated to the agency for whose account the sale was made, 
to be used and expended by the agency to purchase similar needed 
supplies, materials and equipment at any time during the 
biennium in which the sale occurred. 
    Sec. 11.  Minnesota Statutes 1986, section 16B.39, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ENDOWMENT FUND.] The commissioner of 
administration may establish an endowment fund to reward state 
agencies and their employees for improving productivity and 
service quality.  The commissioner shall use gift money to 
establish the fund.  The interest earnings are appropriated to 
the commissioner to make agency and employee awards.  The 
commissioner shall establish an advisory task force of state 
employees and private individuals to recommend criteria for 
granting rewards and to recommend award recipients. 
    Sec. 12.  [16B.405] [SOFTWARE SALES.] 
    Subdivision 1.  [AUTHORIZATION.] To offset the department 
of administration's software development costs through the sale 
of products developed, the commissioner may sell or license 
computer software products or services developed by the 
commissioner or custom developed by a vendor, through whatever 
sales method the commissioner considers appropriate.  Prices for 
the software products or services may be based on market 
considerations. 
    Subd. 2.  [SOFTWARE SALE FUND.] Proceeds of the sale or 
licensing of software products or services by the commissioner 
must be credited to the computer services revolving fund.  If a 
state agency other than the department of administration has 
contributed to the development of software sold or licensed 
under this section, the commissioner may reimburse the agency by 
discounting computer services provided to that agency. 
    Sec. 13.  [16B.481] [FEES FOR TRAINING AND MAINTENANCE.] 
    The commissioner may charge state agencies and political 
subdivisions a fee for the cost of energy conservation training 
and preventive maintenance programs.  Fees collected by the 
commissioner must be deposited in the state treasury and are 
appropriated to the commissioner to pay the cost of the training 
and maintenance programs. 
    Sec. 14.  Minnesota Statutes 1986, section 16B.51, 
subdivision 3, is amended to read: 
    Subd. 3.  [SALE OF PUBLICATIONS.] The commissioner may sell 
official reports, documents, and other publications of all 
kinds, may delegate their sale to state agencies, and may 
establish facilities for their sale within the department of 
administration and elsewhere within the state service.  The 
commissioner may remit a portion of the price of any publication 
to the agency producing the publication. 
    Sec. 15.  [16B.531] [TRAVEL SERVICES.] 
    The commissioner may offer a centralized travel service to 
all state departments and agencies and may, in connection with 
that service, accept payments from travel agencies under 
contracts for the provision of travel services.  The payments 
must be deposited in the motor pool revolving account 
established by section 16B.54, subdivision 8, and must be used 
for the expenses of managing the centralized travel service.  
Revenues in excess of the management costs of the centralized 
service must be returned to the general fund. 
    Sec. 16.  [16B.86] [PRODUCTIVITY LOAN ACCOUNT.] 
    The productivity loan account is a special account in the 
state treasury.  Money in the account is appropriated to the 
commissioner of administration to make loans to finance agency 
projects that will result in either reduced operating costs or 
increased revenues, or both, for a state agency. 
    Sec. 17.  [16B.87] [AWARD AND REPAYMENT OF PRODUCTIVITY 
LOANS.] 
    Subdivision 1.  [COMMITTEE.] The productivity loan 
committee consists of the commissioners of administration, 
finance, revenue, and employee relations, and the state planning 
director.  The commissioner of administration serves as chair of 
the committee.  The members serve without compensation or 
reimbursement for expenses. 
    Subd. 2.  [AWARD AND TERMS OF LOANS.] An agency shall apply 
for a loan on a form provided by the commissioner of 
administration.  The committee shall review applications for 
loans and shall award a loan based upon criteria adopted by the 
committee.  The committee shall determine the amount, interest, 
and other terms of the loan.  The time for repayment of a loan 
may not exceed five years. 
    Subd. 3.  [REPAYMENT.] An agency receiving a loan under 
this section shall repay the loan according to the terms of the 
loan agreement.  The principal and interest must be paid to the 
commissioner of administration who shall deposit it in the 
productivity loan fund. 
    Subd. 4.  [REPORT.] The commissioner of administration 
shall submit a report to the governor and the chairs of the 
house appropriations and senate finance committees by January 15 
each year, reporting the amount and conditions of any loan and 
other matters concerning the operation of the committee. 
    Sec. 18.  Minnesota Statutes 1986, section 138.17, 
subdivision 7, is amended to read: 
    Subd. 7.  [RECORDS MANAGEMENT PROGRAM.] A records 
management program for the application of efficient and 
economical management methods to the creation, utilization, 
maintenance, retention, preservation, and disposal of official 
records shall be administered by the commissioner of 
administration.  The state records center which stores and 
services state records not in state archives shall be 
administered by the commissioner of administration.  The 
commissioner of administration is empowered to (1) establish 
standards, procedures, and techniques for effective management 
of government records, (2) make continuing surveys of paper work 
operations, and (3) recommend improvements in current records 
management practices including the use of space, equipment, and 
supplies employed in creating, maintaining, preserving and 
disposing of government records.  It shall be the duty of the 
head of each state agency and the governing body of each county, 
municipality, and other subdivision of government to cooperate 
with the commissioner in conducting surveys and to establish and 
maintain an active, continuing program for the economical and 
efficient management of the records of each agency, county, 
municipality, or other subdivision of government.  When 
requested by the commissioner, public officials shall assist in 
the preparation of an inclusive inventory of records in their 
custody, to which shall be attached a schedule, approved by the 
head of the governmental unit or agency having custody of the 
records and the commissioner, establishing a time period for the 
retention or disposal of each series of records.  When the 
schedule is unanimously approved by the records disposition 
panel, the head of the governmental unit or agency having 
custody of the records may dispose of the type of records listed 
in the schedule at a time and in a manner prescribed in the 
schedule for particular records which were created after the 
approval.  A list of records disposed of pursuant to this 
subdivision shall be forwarded to the commissioner and the 
archivist by the head of the governmental unit or agency.  The 
archivist shall maintain a list of all records destroyed. 
    Sec. 19.  Minnesota Statutes 1986, section 139.19, is 
amended to read: 
    139.19 [GENERAL NONCOMMERCIAL RADIO STATION GRANTS.] 
    Subdivision 1.  [PURPOSE.] The purposes of this section are 
to facilitate the use of the noncommercial radio station as a 
community resource by providing financial assistance to 
noncommercial radio stations serving Minnesota citizens.  
    Subd. 2.  [DEFINITIONS.] As used in this section, the terms 
defined in this subdivision have the meanings given them.  
    (a) "Corporation for Public Broadcasting" means the 
nonprofit organization established pursuant to United States 
Code, title 47, section 396. 
    (b) "Federal Communications Commission" means the federal 
agency established pursuant to United States Code, title 47, 
section 151.  
    (c) "Licensee" means the individual or business entity to 
whom the Federal Communications Commission has issued the 
license to operate a noncommercial radio station. 
    (d) "Noncommercial radio station" means a station holding a 
license or operating under program test authority operated by a 
licensee as a noncommercial educational radion station under a 
license or program test authority from the Federal 
Communications Commission as a noncommercial educational radio 
station, licensed to a community within the state and serving a 
segment of the population of the state.  
    (d) (e) "Operating income" may include:  
    (1) individual and other community contributions;  
    (2) all grants received from the Corporation for Public 
Broadcasting;  
    (3) grants received from foundations, corporations, or 
federal, state, or local agencies or other sources for the 
purpose of programming or general operating support;  
             (4) interest income;  
             (5) earned income;  
             (6) employee salaries paid through the federal 
Comprehensive Employment Training Act, or other similar public 
employment programs, provided that only salary expended for 
employee duties directly relating to radio station operations 
shall be counted;  
             (7) employee salaries paid through supporting educational 
institutions, provided that only salary expended for employee 
duties directly relating to radio station operations shall be 
counted;  
             (8) direct operating costs provided by supporting 
educational institutions; and 
             (9) no more than $15,000 in volunteer time calculated at 
the federal minimum wage.  
             The following are specifically excluded in determining a 
station's operating income:  
             (1) dollar representations in in-kind assistance from any 
source except as stipulated in clauses (8) and (9) above;  
             (2) grants or contributions from any source for the 
purpose of purchasing capital improvements or equipment; and 
    (3) noncommercial radio station grants received in the 
previous fiscal year pursuant to this section.  
    Subd. 3.  [STATION ELIGIBILITY.] To qualify for a grant 
under this section, a noncommercial radio station the licensee 
shall: 
    (a) Hold a valid noncommercial educational radio station 
license or program test authority from the Federal 
Communications Commission; 
    (b) Have facilities adequate to provide local program 
production and origination; 
    (c) Employ a minimum of two full time professional radio 
staff persons or the equivalent in part-time staff and agree to 
employ a minimum of two full time professional radio staff 
persons or the equivalent in part-time staff throughout the 
fiscal year of the grant; 
    (d) Maintain a minimum daily broadcasting schedule of (1) 
the maximum allowed by its Federal Communications Commission 
license or (2) 12 hours a day during the first year of 
eligibility for state assistance, 15 hours a day during the 
second year of eligibility and 18 hours a day during the third 
and following years of eligibility; 
    (e) Broadcast 365 days a year or the maximum number of days 
allowed by its Federal Communications Commission license; 
    (f) Have a daily broadcast schedule devoted primarily to 
programming that serves ascertained community needs of an 
educational, informational or cultural nature within its primary 
signal area; however, a program schedule of a main channel 
carrier designed to further the principles of one or more 
particular religious philosophies or including 25 percent or 
more religious programming on a broadcast day does not meet this 
criterion, nor does a program schedule of a main channel carrier 
designed primarily for in-school or professional in-service 
audiences; 
     (g) Originate significant, locally produced programming 
designed to serve its community of license; 
     (h) Have a total annual operating income and budget of at 
least $50,000; 
     (i) Have either a board of directors representing the 
community or a community advisory board that conducts advisory 
board meetings that are open to the public; 
     (j) Have a board of directors that:  (1) holds the portion 
of any meeting relating to the management or operation of the 
radio station open to the public and (2) permits any person to 
attend any meeting of the board without requiring a person, as a 
condition to attendance at the meeting, to register the person's 
name or to provide any other information; and 
     (k) Have met the criteria in clauses (a) to (j) for six 
months before it is eligible for state assistance under this 
section. 
     The commissioner shall accept the judgment of Corporation 
for Public Broadcasting accepted audit when it is available on a 
station's eligibility for assistance under the criteria of this 
subdivision.  If the applicant station is not qualified for 
assistance from the Corporation for Public Broadcasting, an 
independent audit is required. 
    Subd. 4.  [APPLICATION.] To be eligible for a grant under 
this section, a station licensee shall submit an application to 
the commissioner within the deadline prescribed by the 
commissioner.  It shall also submit, within the deadline 
prescribed by the commissioner, its audited financial records 
for the fiscal year preceding the year for which the grant will 
be made. 
    Subd. 5.  [GRANTS.] (a) The commissioner shall determine 
eligibility for grants and the allocation of grant money on the 
basis of audited financial records of the station to receive the 
grant funds for the applicant station's fiscal year preceding 
the year in which the grant is made, as well as on the basis of 
the other requirements set forth in this section.  The 
commissioner shall annually distribute grants to all stations 
that comply with the eligibility requirements and apply for 
which a licensee applies for a grant.  The commissioner may 
promulgate rules to implement this section.  For this purpose 
the commissioner may promulgate emergency rules pursuant to 
sections 14.29 to 14.36.  An applicant's share of the grant 
money shall be based on: 
    (1) The amount received in the preceding year by the 
station to which the grant would be distributed in private 
nontax generated contributions from sources within the state; no 
contributions made for the purpose of capital expenditures shall 
be counted; and 
    (2) The dollar value in the preceding year of contributions 
of volunteer time to station operations, provided that the 
volunteer time was not used for the purpose of raising money for 
the station.  Volunteer time shall be valued at the federal 
minimum wage per hour.  A station's total allocation for 
volunteer time shall not exceed 20 percent of its total grant 
pursuant to this section. 
    (b) The commissioner shall match every verified 
contribution dollar under paragraph (a), clause (1) and 
volunteer time dollar, as calculated under paragraph (a), clause 
(2), with two state dollars for each eligible applicant until 
the applicant station to which the grant is distributed has 
received $10,000 in grant money under this section, and 
thereafter grant money shall be distributed on a dollar for 
dollar basis until the total amount appropriated for that year 
has been distributed equally among all applicants stations.  A 
station may receive state matching money only until the 
station's total verified contribution and volunteer time has 
been matched or the amount of the grant received equals 
one-third of the station's total operating income for the 
previous fiscal year. 
    (c) A station may use grant money under this section for 
any radio station expenses. 
    Subd. 6.  [AUDIT.] A station that receives a grant under 
this section shall have an audit of its financial records made 
by an independent auditor or Corporation for Public Broadcasting 
accepted audit at the end of the fiscal year for which it 
received the grant.  The audit shall include a review of station 
promotion, operation, and management and an analysis of the 
station's use of the grant money.  A copy of the audit shall be 
filed with the commissioner. 
    Sec. 20.  Minnesota Statutes 1986, section 248.07, 
subdivision 8, is amended to read: 
    Subd. 8.  [USE OF REVOLVING FUND, LICENSES FOR OPERATION OF 
VENDING MACHINES.] The revolving fund created by Laws 1947, 
chapter 535, section 5, is continued as provided in this 
subdivision and shall be known as the revolving fund for 
vocational rehabilitation of the blind.  It shall be used for 
the purchase of equipment and supplies for establishing and 
operating of vending stands by blind persons.  All income, 
receipts, earnings, and federal grants due to the operation 
thereof shall also be paid into the fund.  All interest earned 
on money accrued in the fund must be credited to the fund by the 
state treasurer.  All equipment, supplies, and expenses for 
setting up these stands shall be paid for from the fund.  
Authority is hereby given to the commissioner to use the money 
available in the revolving fund for the establishment, operation 
and supervision of vending stands by blind persons for the 
following purposes:  (1) purchase, upkeep and replacement of 
equipment; (2) purchase of initial and replacement stock of 
supplies and merchandise; (3) expenses incidental to the setting 
up of new stands and improvement of old stands; (4) purchase of 
general liability insurance as deemed advisable for any vending 
stand by the commissioner; (5) reimbursement to individual blind 
vending operators for reasonable travel and maintenance expenses 
incurred in attending supervisory meetings as called by the 
commissioner; (6) purchase of fringe benefits for blind vending 
operators and their employees such as group health insurance, 
retirement program, vacation or sick leave assistance provided 
that the purchase of any fringe benefit is approved by a 
majority vote of blind vending operators licensed pursuant to 
this subdivision after the commissioner provides to each blind 
vending operator information on all matters relevant to the 
fringe benefits.  Fringe benefits shall be paid only from 
assessments of operators for specific benefits, gifts to the 
fund for fringe benefit purposes, and vending income which is 
not assignable to an individual stand. 
    The commissioner shall issue each license for the operation 
of a vending stand or vending machine for an indefinite period 
but may terminate any license in the manner provided.  In 
granting licenses for new or vacated stands preference on the 
basis of seniority of experience in operating stands under the 
control of the commissioner shall be given to capable operators 
who are deemed competent to handle the enterprise under 
consideration.  Application of this preference shall not 
prohibit the commissioner from selecting an operator from the 
community in which the stand is located.  
    Sec. 21.  Minnesota Statutes 1986, section 645.445, 
subdivision 2, is amended to read:  
    Subd. 2.  "Small business" means a business entity 
organized for profit, including but not limited to any 
individual, partnership, corporation, joint venture, association 
or cooperative, which entity:  
    (a) Is not an affiliate or subsidiary of a business 
dominant in its field of operation; and 
    (b) Has 20 or fewer full-time employees; or 
    (c) In the preceding fiscal year has not had more than the 
equivalent of $1,000,000 in annual gross revenues in the 
preceding fiscal year; or 
    (d) If the business is a technical or professional service, 
shall not have had more than the equivalent of $2,500,000 in 
annual gross revenues in the preceding fiscal year.  
    Sec. 22.  Minnesota Statutes 1986, section 645.445, 
subdivision 3, is amended to read:  
    Subd. 3.  "Dominant in its field of operation" means having 
more than 20 full-time employees and more than $1,000,000 in 
annual gross revenues or $2,500,000 in annual gross revenues if 
a technical or professional service. 
    Sec. 23.  Laws 1979, chapter 333, section 18, is amended to 
read: 
    Sec. 18.  [ADMINISTRATION.] 
General Operations and Management     15,136,500     15,595,900
Approved Complement - 956
 General - 485
 Special - 11
 Federal - 7
 Revolving - 453
The amounts that may be expended from this appropriation for 
each program are as follows: 
 Management Services
  $ 3,311,200    $ 3,493,300
The commissioner of administration shall transfer two positions 
from management analysis to records management to allow the 
department to meet its responsibilities for records management.  
These positions may revert to management analysis when they are 
no longer needed to meet those responsibilities. 
 Real Property Management
  $ 7,804,200   $ 7,780,900
The commissioner of administration shall charge the department 
of transportation and the iron range resources and 
rehabilitation board for engineering services performed on 
behalf of these agencies. 
The unencumbered balance in appropriation accounts 16078:14-11 
and 16072:14-11 shall be canceled on July 1, 1979. 
 State Agency Services
  $ 1,224,400   $ 1,222,000
  For 1979 - $169,200
$169,200 is available as an advance appropriated from the 
general fund to the surplus property revolving fund.  Of this 
amount, $67,700 is immediately available for payment of 
outstanding obligations, $40,000 is immediately available as 
working capital, and $61,500 is available for the reduction of 
obligations incurred between March 1, 1979, and February 29, 
1980. 
The commissioner of administration shall provide a monthly 
report to the commissioner of finance consisting of:  an 
operations statement, a balance sheet, an analysis of changes in 
retained earnings, and a source and use of funds statement.  The 
commissioner of finance is responsible for approving the 
allotment of the $61,500 portion of the advance appropriation 
and shall give his approval when potential deficiencies are 
forecast.  If it appears that the $61,500 portion of the advance 
appropriation will be exhausted prior to January 15, 1980, the 
commissioner of finance shall promptly notify the governor and 
the legislative advisory commission of the need for an 
additional advance appropriation. 
The commissioner of administration shall by January 15, 1980, 
provide copies of all monthly reports through the period ending 
December 31, 1979, to the senate finance committee and the house 
appropriations committee.  The commissioner of finance shall by 
January 15, 1980, recommend the continuance or discontinuance of 
the federal surplus property activity to the committee on 
finance in the senate and the committee on appropriations of the 
house of representatives. 
The advance of $169,200 shall be returned in full or in 
increments to the general fund from the surplus property 
revolving fund when the commissioner of finance determines that 
retained earnings are in excess of the working capital 
requirements of the surplus property revolving fund.  In the 
event the surplus property revolving fund is discontinued, any 
portion of the advance of $169,200 that has not been returned to 
the general fund shall, immediately upon liquidation of assets, 
be paid to the general fund. 
 Public Services
  $ 1,748,900   $ 2,053,400
$37,000 the first year and $40,700 the second year is for the 
state contribution to the National Conference of State 
Legislatures. 
$43,900 each year is for the state contribution to the Council 
of State Governments. 
$6,500 each year is for the expenses of the Interstate 
Cooperation Commission. 
$5,000 each year is for the Minnesota state employees band. 
 General Support
  $ 1,047,800   $1,046,300
The commissioner of administration with the approval of the 
commissioner of finance may transfer unencumbered balances not 
specified for a particular purpose among the above programs.  
Transfers shall be reported forthwith to the committee on 
finance of the senate and the committee on appropriations of the 
house of representatives. 
    Sec. 24.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes shall renumber Minnesota Statutes, 
section 4.31, subdivisions 1 and 5, in chapter 16B. 
    Sec. 25.  [REPEALER.] 
    Minnesota Statutes 1986, sections 16B.39, subdivision 1; 
and 138.22, are repealed. 
    Sec. 26.  [EFFECTIVE DATE.] 
    Sections 6, 9 to 13, 15, 19, 21 and 22 are effective the 
day following final enactment. 
    Approved June 2, 1987