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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 613-H.F.No. 2291 
           An act relating to state agencies; amending, enacting, 
          and repealing certain laws administered by the 
          department of administration; requiring the 
          commissioner of administration to consider the 
          provision of child care facilities in new state office 
          space; requiring state agencies to adopt policies 
          regulating smoking in space under their control; 
          increasing the powers of the state board for community 
          colleges; changing the criteria for board membership; 
          amending Minnesota Statutes 1986, sections 15.0591, 
          subdivision 2; 16A.41, subdivision 1; 16B.07, 
          subdivisions 2 and 3; 16B.08, subdivision 4; 16B.09, 
          subdivision 3; 16B.24, by adding subdivisions; 16B.28; 
          16B.42, subdivision 1; 16B.48, subdivision 2; 16B.55, 
          subdivisions 3 and 6; 16B.65, subdivision 3; 16B.85; 
          94.12; 136.61, subdivision 1; 136.622; 136.67, 
          subdivision 2; 214.07, subdivision 1; and 382.153; 
          Minnesota Statutes 1987 Supplement, sections 16B.09, 
          subdivision 1; 16B.67; 115A.15, subdivision 6; and 
          168.012, subdivision 1; Laws 1987, chapter 365, 
          section 24; proposing coding for new law in Minnesota 
          Statutes, chapters 16B; and 136. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1986, section 15.0591, 
subdivision 2, is amended to read:  
    Subd. 2.  [BODIES AFFECTED.] A member meeting the 
qualifications in subdivision 1 shall must be appointed to the 
following boards, commissions, advisory councils, task forces, 
or committees:  
    (1) advisory council on battered women;  
    (2) advisory task force on the use of state facilities;  
    (3) alcohol and other drug abuse advisory council;  
    (4) board for community colleges;  
    (5) board of examiners for nursing home administrators;  
    (6) (5) board on aging;  
    (7) (6) chiropractic examiners board;  
    (8) (7) consumer advisory council on vocational 
rehabilitation; 
    (9) (8) council for the handicapped;  
    (10) (9) council on affairs of Spanish-speaking people;  
    (11) (10) council on black Minnesotans;  
    (12) (11) dentistry board;  
    (13) (12) department of jobs and training advisory council; 
    (14) (13) higher education coordinating board;  
    (15) (14) housing finance agency;  
    (16) (15) Indian advisory council on chemical dependency;  
    (17) (16) medical examiners board;  
    (18) (17) medical policy directional task force on mental 
health; 
    (19) (18) Minnesota employment and economic development 
task force; 
    (20) (19) Minnesota office of volunteer services advisory 
committee;  
    (21) (20) Minnesota state arts board;  
    (22) (21) mortuary sciences advisory council;  
    (23) (22) nursing board;  
    (24) (23) optometry board;  
    (25) (24) pharmacy board;  
    (26) (25) physical therapists council;  
    (27) (26) podiatry board;  
    (28) (27) psychology board;  
    (29) (28) veterans advisory committee. 
    Sec. 2.  Minnesota Statutes 1986, section 16A.41, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CERTIFIED.] Except as provided in 
subdivision 1a, when claims against the state are made for which 
there is an appropriation available, an official with authority 
to pay a claim shall approve the claim by certifying that the 
service was performed or, the goods or material furnished, or 
monthly telephone service is in effect.  The claim must be sent 
to the commissioner accompanied by a transmittal form as 
prescribed by the commissioner. 
    Sec. 3.  [16B.052] [AUTHORITY TO TRANSFER FUNDS.] 
    The commissioner may, with the approval of the commissioner 
of finance, transfer from an internal service or enterprise fund 
account to another internal service or enterprise fund account, 
any contributed capital appropriated by the legislature.  The 
transfer may be made only to provide working capital or positive 
cash flow in the account to which the money is transferred.  The 
transfer must be repaid within 18 months.  
    Sec. 4.  Minnesota Statutes 1986, section 16B.07, 
subdivision 2, is amended to read:  
    Subd. 2.  [REQUIREMENT CONTRACTS.] Standard requirement 
price contracts for supplies or services to be purchased by the 
state must be established by competitive bids as provided in 
subdivision 1.  The standard requirement price contracts may 
contain escalation clauses and may provide for a negotiated 
price increase or decrease based upon a demonstrable 
industrywide or regional increase or decrease in the vendor's 
costs or for the addition of similar products or replacement 
items not significant to the total value of existing contracts.  
The term of these contracts may not exceed two years with an 
option on the part of the state to renew for an additional 
two five years including all extensions.  
    Sec. 5.  Minnesota Statutes 1986, section 16B.07, 
subdivision 3, is amended to read:  
    Subd. 3.  [PUBLICATION OF NOTICE; EXPENDITURES OVER $15,000 
AND REQUESTS FOR PROPOSAL.] If the amount of an expenditure or 
sale is estimated to exceed $15,000, sealed bids or requests for 
proposal as provided in section 16B.08, subdivision 4, clause 
(b), must be solicited by public notice inserted at least once 
in a newspaper or trade journal not less than seven days before 
the final date of submitting bids.  The commissioner shall 
designate the newspaper or trade journal for that publication, 
and may designate different newspapers or journals according to 
the nature of the purchase or contract.  The commissioner shall 
also solicit sealed bids by sending notices by mail to all 
prospective bidders known to the commissioner, and by posting 
notice on a public bulletin board in the commissioner's office 
at least five days before the final date of submitting bids.  
All bids must be sealed when they are received and must be 
opened in public at the hour stated in the notice.  All original 
bids and all documents pertaining to the award of a contract 
must be retained and made a part of a permanent file or record 
and remain open to public inspection.  
    Sec. 6.  Minnesota Statutes 1986, section 16B.08, 
subdivision 4, is amended to read:  
    Subd. 4.  [NEGOTIATED CONTRACTS.] (a) In lieu of any of the 
other requirements of this chapter, the commissioner may 
negotiate a contract for public work to be performed at a 
state-owned institution or installation if the cost does not 
exceed $15,000 and if the head of the affected state agency 
requests the commissioner to do so.  The commissioner shall have 
prepared whatever plans and specifications for the public work 
deemed necessary by the commissioner to protect the public 
interest.  Contractor's bonds or security pursuant to chapter 
574 are not required for contracts entered into pursuant to this 
subdivision.  
    (b) In lieu of the requirement for competitive bidding in 
section 16B.07, subdivision 1, purchases and contracts may be 
negotiated in those circumstances determined by the 
commissioner, and in any of those circumstances the commissioner 
shall advertise for a request for proposal as a basis for 
negotiation. 
    Sec. 7.  Minnesota Statutes 1987 Supplement, 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, the purpose for which the contract or 
purchase is intended, the status and capability of the vendor, 
and other conditions considerations 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. 8.  Minnesota Statutes 1986, section 16B.09, 
subdivision 3, is amended to read:  
    Subd. 3.  [SPECIAL CIRCUMSTANCES.] The commissioner may 
reject the bid of any bidder who has failed to perform a 
previous contract with the state.  In the case of identical low 
bids from two or more bidders, the commissioner may use 
negotiated procurement methods with the tied low bidders for 
that particular transaction, so long as the price paid does not 
exceed the low tied bid price.  The commissioner may award 
contracts to more than one bidder in accordance with section 
16B.09, subdivision 1, if doing so does not decrease the service 
level or diminish the effect of competition. 
    Sec. 9.  Minnesota Statutes 1986, section 16B.24, is 
amended by adding a subdivision to read: 
    Subd. 9.  [SMOKING IN STATE BUILDINGS.] (a) To protect the 
public health, comfort, and environment and to protect the 
nonsmoker's right to a smoke-free environment, smoking in all 
buildings managed or leased by the commissioner under 
subdivisions 1 and 6 is prohibited except where smoking areas 
have been designated under a policy adopted in accordance with 
paragraph (b). 
    (b) Except as provided in paragraph (c), each state agency 
shall adopt a smoking policy for the space it occupies.  Before 
placing a policy in effect, the agency shall submit the policy 
and a plan for implementing it to the commissioner of employee 
relations.  The policy must: 
    (1) prohibit smoking entirely; or 
    (2) permit smoking only in designated areas, providing that 
existing physical barriers and ventilation systems can be used 
to prevent or substantially minimize the toxic effect of smoke 
in adjacent nonsmoking areas. 
    (c) An agency need not adopt a new policy governing an area 
in which smoking is prohibited under a policy in effect on the 
effective date of this subdivision.  
    No employee complaining of a smoke-induced discomfort to a 
lessor, lessee, manager, or supervisor may be subjected to any 
disciplinary action as a result of making the complaint.  
    Sec. 10.  Minnesota Statutes 1986, section 16B.24, is 
amended by adding a subdivision to read: 
    Subd. 10.  [CHILD CARE SERVICES SPACE.] For state office 
space that is leased, purchased, or substantially remodeled 
after August 1, 1988, the commissioner shall consider including 
space usable for child care services.  Child care space must be 
included if the commissioner determines that it is needed and 
that it could be provided at reasonable cost.  
    Sec. 11.  Minnesota Statutes 1986, section 16B.28, is 
amended to read:  
    16B.28 [SURPLUS FEDERAL PROPERTY MATERIALS DISTRIBUTION.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this section 
the following terms have the meanings given them:  
    (a) "Surplus property" means commodities, equipment, 
materials, supplies, books, printed matter, and other property 
made available by the federal government a governmental unit or 
nonprofit organization to a another governmental unit or 
nonprofit organization.  
    (b) "Governmental unit or nonprofit organization" means the 
state of Minnesota, its departments, agencies, political 
subdivisions, and other instrumentalities a governmental unit as 
defined in section 471.59, subdivision 1, an Indian tribal 
government, and any nonprofit and tax-exempt medical 
institution, hospital, clinic, health center, school, school 
system, college, university, or other institution organized and 
existing for any purpose authorized by federal law to accept 
surplus federal property.  
    Subd. 2.  [AUTHORIZATION.] (a) The commissioner is the 
state agency designated to purchase or, accept or dispose of 
federal surplus property for the state and for the benefit of 
any other governmental unit or nonprofit organization for any 
purpose authorized by state and federal law and in accordance 
with federal rules and regulations.  Any governmental unit or 
nonprofit organization may designate the commissioner to 
purchase or accept surplus property for it upon mutually 
agreeable terms and conditions.  The commissioner may 
store acquire, accept, warehouse, and distribute surplus 
property until it is needed and any expenses incurred in 
connection with the storage any of these acts shall be paid from 
the surplus property materials distribution revolving fund.  
    (b) To dispose of surplus property or other property that 
is obsolete or unused that belongs to the state or any other 
governmental unit or nonprofit organization, the commissioner 
may transfer or sell it to a governmental unit or nonprofit 
organization or sell it to any other person.  Federal surplus 
property that has been transferred to the state for donation to 
public agencies and nonprofit organizations must be transferred 
or sold in accordance with the plan developed under paragraph 
(d).  Expenses incurred in connection with the disposal of 
surplus property or other property that is obsolete or unused 
must be paid from the materials distribution revolving fund.  If 
the commissioner sells the property, the proceeds of the sale, 
minus any expenses of providing the service set by the 
commissioner, are appropriated to the governmental unit or 
nonprofit organization for whose account the sale was made, to 
be used and expended by the organization for the purposes it 
determines. 
    (c) The commissioner may centrally acquire, warehouse, and 
distribute supplies, materials, and equipment for governmental 
units or nonprofit organizations.  Expenses incurred in 
connection with acquiring, warehousing, and distributing must be 
paid from the materials distribution revolving fund.  
     (d) The commissioner shall develop a detailed plan for 
disposal of donated federal property in conformance with state 
law and federal regulations.  The plan must be submitted to the 
governor for certification and submission to the federal 
administrator of general services. 
    Subd. 3.  [REVOLVING FUND.] (a) [CREATION.] To pay for 
surplus property received from the federal government for 
governmental or nonprofit organizations, including the expense 
of accepting and distributing that property, there is a surplus 
property revolving fund in the state treasury.  The materials 
distribution revolving fund is a separate fund in the state 
treasury.  All money relating to the resource recovery program 
established under section 115A.15, subdivision 1, all money 
resulting from the acquisition, acceptance, warehousing, 
distribution, and public sale of surplus property, all money 
resulting from the sale of centrally acquired, warehoused, and 
distributed supplies, materials, and equipment, and all money 
relating to the cooperative purchasing venture established under 
section 421.59 must be deposited in the fund.  Money paid into 
the surplus property materials distribution revolving fund is 
appropriated to the commissioner for the purposes of the 
programs and services referred to in this section.  
    (b) [ADVANCES.] No more than $1,000 from the surplus 
property revolving fund may be advanced to the commissioner or a 
state employee engaged in performing duties under this section 
to pay the expenses of travel, subsistence, toll charges, and 
similar expenses, in accordance with requirements prescribed by 
the commissioner of finance.  When money which was advanced is 
repaid, it must be deposited in the state treasury to the credit 
of the surplus property revolving fund.  
    (c) [TRANSFER OR SALE TO STATE AGENCY.] When the state or 
an agency operating under a legislative appropriation obtains 
surplus property from the commissioner, the commissioner of 
finance must, at the commissioner's request, transfer the cost 
of the surplus property, including any expenses of acquiring, 
accepting, warehousing, and distributing the surplus property, 
from the appropriation of the state agency receiving the surplus 
property to the surplus property materials distribution 
revolving fund.  The determination of the commissioner is final 
as to the cost of the surplus property to the state agency 
receiving the property.  
    (d) (c) [TRANSFER OR SALE TO OTHER AGENCIES GOVERNMENTAL 
UNITS OR NONPROFIT ORGANIZATIONS.] When any governmental unit or 
nonprofit organization other than a state agency receives 
surplus property, supplies, materials, or equipment from the 
commissioner, the governmental unit or nonprofit organization 
must reimburse the surplus property materials distribution 
revolving fund for the cost of the property, including the 
expenses of acquiring, accepting, warehousing, and distributing 
it, in an amount the commissioner sets.  The commissioner may, 
however, require the governmental unit or nonprofit organization 
to deposit in advance in the surplus property materials 
distribution revolving fund the cost of the surplus property, 
supplies, materials, and equipment upon mutually agreeable terms 
and conditions.  The commissioner may charge a fee to political 
subdivisions and nonprofit organizations to establish their 
eligibility for receiving the property and to pay for costs of 
storage and distribution.  
    Sec. 12.  Minnesota Statutes 1986, section 16B.42, 
subdivision 1, is amended to read:  
    Subdivision 1.  [COMPOSITION.] The commissioner of 
administration shall appoint an intergovernmental information 
systems advisory council, to serve at the pleasure of the 
commissioner of administration, consisting of 25 members. 
Fourteen members shall be appointed or elected officials of 
local governments, seven shall be representatives of state 
agencies, and four shall be selected from the community at 
large.  Further, the council shall be composed of (1) two 
members from each of the following groups:  counties outside of 
the seven county metropolitan area, cities of the second and 
third class outside the metropolitan area, cities of the second 
and third class within the metropolitan area, and cities of the 
fourth class; (2) one member from each of the following groups: 
the metropolitan council, an outstate regional body, counties 
within the metropolitan area, cities of the first class, school 
districts in the metropolitan area, and school districts outside 
the metropolitan area; (3) one member each from the state 
departments of administration, education, human services, 
revenue, planning and the legislative auditor; (4) one member 
from the office of the state auditor; and (5) four members from 
the state community at large.  To the extent permitted by 
available resources the commissioner shall furnish staff and 
other assistance as requested by the council.  The council shall 
expire and the terms, compensation, and removal of members of 
the advisory council shall be as provided in section 15.059, but 
the council does not expire until June 30, 1993.  
    Sec. 13.  Minnesota Statutes 1986, section 16B.48, 
subdivision 2, is amended to read:  
    Subd. 2.  [PURPOSE OF FUNDS.] Money in the state treasury 
credited to the general services revolving fund and money which 
is deposited in the fund is appropriated annually to the 
commissioner for the following purposes:  
    (1) to operate a central store and equipment service;  
    (2) to operate a central duplication and printing service;  
    (3) to purchase postage and related items and to refund 
postage deposits as necessary to operate the central mailing 
service;  
    (4) to operate a documents service as prescribed by section 
16B.51; 
    (5) to provide advice and other services to political 
subdivisions for the management of their records, information, 
and telecommunication systems; 
    (6) to provide services for the maintenance, operation, and 
upkeep of buildings and grounds managed by the commissioner of 
administration;  
    (7) to provide analytical, statistical, and organizational 
development services to state agencies, local units of 
government, metropolitan and regional agencies, and school 
districts; 
    (8) to provide capitol security services through the 
department of public safety; and 
    (9) to perform services for any other agency.  Money shall 
be expended for this purpose only when directed by the 
governor.  The agency receiving the services shall reimburse the 
fund for their cost, and the commissioner shall make the 
appropriate transfers when requested.  The term "services" as 
used in this clause means compensation paid officers and 
employees of the state government; supplies, materials, 
equipment, and other articles and things used by or furnished to 
an agency; and utility services, and other services for the 
maintenance, operation, and upkeep of buildings and offices of 
the state government. 
    Sec. 14.  Minnesota Statutes 1986, section 16B.55, 
subdivision 3, is amended to read:  
    Subd. 3.  [PERMITTED USES.] A state vehicle may be used by 
a state employee to travel to or from the employee's residence:  
    (1) on a day on which it may be necessary for the employee 
to respond to a work-related emergency during hours when the 
employee is not normally working;  
    (2) if the employee has been assigned the use of a state 
vehicle for authorized state business on an extended basis, and 
the employee's primary place of work is not the state work 
station to which the employee is permanently assigned;  
    (3) if the employee has been assigned the use of a state 
vehicle for authorized state business away from the work station 
to which the employee is permanently assigned, and the number of 
miles traveled, or the time needed to conduct the business, will 
be minimized if the employee uses a state vehicle to travel to 
the employee's residence before or after traveling to the place 
of state business.  
    Use of a state vehicle pursuant to this subdivision 
requires the prior approval of the agency head or the designee 
of the agency head.  Within 15 days of the end of each 
three-month period, the head of each agency shall report to the 
commissioner on each case in which a state vehicle is used by an 
employee of that agency to travel to or from the employee's 
residence.  The commissioner shall specify the form of this 
report and the information to be included.  If no state vehicles 
have been used for this travel, the head of the state agency 
shall report this to the commissioner; or 
    (4) if the employee is authorized to participate in a 
ridesharing program established by the commissioner pursuant to 
section 174.257.  
    Use of a state vehicle under this subdivision requires the 
prior approval of the agency head or the designee of the agency 
head. 
    Sec. 15.  Minnesota Statutes 1986, section 16B.55, 
subdivision 6, is amended to read:  
    Subd. 6.  [ADMINISTRATIVE POLICIES VEHICLE OPERATING 
PROCEDURES.] The commissioner shall determine when an employee 
must reimburse the state for use of a state vehicle and the 
rates of reimbursement.  Rates of reimbursement shall cover the 
full cost to the state for the travel for which reimbursement is 
required.  The commissioner shall also set operating procedures 
for use of state vehicles. These rules, rates, and operating 
procedures are not subject to the administrative procedure act.  
Money received under these rules shall be deposited as 
nondedicated receipts to the credit of the fund from which the 
costs of operating the individual vehicles are paid.  
    Sec. 16.  Minnesota Statutes 1986, section 16B.65, 
subdivision 3, is amended to read:  
    Subd. 3.  [CERTIFICATION.] The department of employee 
relations, with the approval of the commissioner, shall either:  
    (1) prepare and conduct oral, written, and practical 
examinations to determine if a person is qualified pursuant to 
subdivision 2 to be a building official, or; 
    (2) accept documentation of successful completion 
of testing programs of training developed by public nationally 
recognized testing agencies, as proof of qualification pursuant 
to subdivision 2; or 
    (3) determine qualifications by both clauses (1) and (2).  
    Upon a determination of qualification under either clause 
(1) or, (2), or both of them, the commissioner shall issue a 
certificate to the building official stating that the official 
is certified.  Each person applying for examination and 
certification pursuant to this section shall pay a fee 
of $20 $70.  The department of employee relations and the 
commissioner or a designee may establish classes of 
certification that will recognize the varying complexities of 
code enforcement in the municipalities within the state.  Except 
as provided by subdivision 2, no person may act as a building 
official for a municipality unless the department of employee 
relations and the commissioner determine determines that the 
official is qualified.  The department of employee relations 
may, with the approval of the commissioner, prepare and 
conduct shall provide educational programs designed to train and 
assist building officials in carrying out their responsibilities.
    The department of employee relations may, at the request of 
the commissioner, provide statewide testing services. 
    Sec. 17.  Minnesota Statutes 1987 Supplement, section 
16B.67, is amended to read:  
    16B.67 [APPEALS.] 
    A person aggrieved by the final decision of any 
municipality as to the application of the code, including any 
rules adopted under sections 471.465 to 471.469, may, within 180 
days of the decision, appeal to the commissioner.  Appellant 
shall submit a fee of $20 $70, payable to the commissioner, with 
the request for appeal.  The final decision of the involved 
municipality is subject to review de novo by the commissioner or 
a designee An appeal must be heard as a contested case under 
chapter 14.  The commissioner shall submit written findings to 
the parties.  The party not prevailing shall pay the costs of 
the contested case hearing, including fees charged by the office 
of administrative hearings and the expense of transcript 
preparation.  Costs under this section do not include attorney 
fees.  Any person aggrieved by a ruling of the commissioner may 
appeal in accordance with chapter 14.  For the purpose of this 
section "any person aggrieved" includes the council on 
disability.  No fee or costs shall be required when the council 
on disability is the appellant.  
    Sec. 18.  Minnesota Statutes 1986, section 16B.85, is 
amended to read:  
    16B.85 [RISK MANAGEMENT.] 
    Subdivision 1.  [ALTERNATIVES TO CONVENTIONAL INSURANCE.] 
In the event that the state is unable to obtain certain types of 
insurance, or the commissioner determines insurance to be 
unreasonably costly, The commissioner may implement programs of 
insurance or alternatives to the purchase of conventional 
insurance for areas of risk not subject to collective bargaining 
agreements, plans established under section 43A.18, or programs 
established under sections 176.540 to 176.611.  A The mechanism 
for implementing possible alternatives to conventional insurance 
is the risk management fund created in subdivision 2. 
    Subd. 2.  [RISK MANAGEMENT FUND.] A state risk management 
fund is created.  All state agencies which have had or may have 
casualty claims against them with respect to the risks for which 
the commissioner has implemented conventional insurance 
alternatives shall contribute to the fund a portion of the money 
appropriated to them.  The commissioner shall determine the 
proportionate share of each agency on the basis of the agency's 
casualty claim experience as compared to other affected 
agencies.  The money in the fund to pay casualty claims arising 
from state activities and for administrative costs, including 
costs for the adjustment and defense of the claims, is 
appropriated to the commissioner.  Interest earned from the 
investment of money in the fund shall be credited to the fund 
and be available to the commissioner for the expenditures 
authorized in this subdivision.  The fund is exempt from the 
provisions of section 16A.15, subdivision 1.  In the event that 
proceeds in the fund are insufficient to pay outstanding claims 
and associated administrative costs, the commissioner, in 
consultation with the commissioner of finance, may assess state 
agencies participating in the fund amounts sufficient to pay the 
costs.  The commissioner shall determine the proportionate share 
of the assessment of each agency on the basis of the agency's 
casualty claim experience as compared to other affected agencies.
    (a) All state agencies may, in cooperation with the 
commissioner, participate in insurance programs and other 
funding alternative programs provided by the risk management 
fund. 
    (b) When an agency or agencies enter into an insurance or 
self-insurance program, each agency shall contribute the 
appropriate share of its costs as determined by the commissioner.
    (c) The money in the fund to pay claims arising from state 
activities and for administrative costs, including costs for the 
adjustment and defense of the claims, is appropriated to the 
commissioner. 
    (d) Interest earned from the investment of money in the 
fund shall be credited to the fund and be available to the 
commissioner for the expenditures authorized in this subdivision.
    (e) The fund is exempt from the provisions of section 
16A.15, subdivision 1.  In the event that proceeds in the fund 
are insufficient to pay outstanding claims and associated 
administrative costs, the commissioner, in consultation with the 
commissioner of finance, may assess state agencies participating 
in the fund amounts sufficient to pay the costs.  The 
commissioner shall determine the proportionate share of the 
assessment of each agency. 
    Subd. 3.  [RESPONSIBILITIES.] The commissioner shall: 
    (1) review the state's exposure to various types of 
potential risks in consultation with affected agencies and 
advise state agencies as to the reduction of risk and fiscal 
management of those losses; 
    (2) be responsible for statewide risk management 
coordination, evaluation of funding and insuring alternatives, 
and the approval of all insurance purchases in consultation with 
affected agencies; 
    (3) identify ways to eliminate redundant efforts in the 
management of state risk management and insurance programs; 
    (4) maintain the state risk management information system; 
and 
    (5) administer and maintain the state risk management fund. 
    Subd. 4.  [COMPETITIVE BIDDING.] The commissioner may 
request bids from insurance carriers or negotiate with insurance 
carriers and may enter into contracts of insurance carriers that 
in the judgment of the division are best qualified to underwrite 
and service the insurance programs. 
    Subd. 5.  [RISK MANAGEMENT FUND NOT CONSIDERED 
INSURANCE.] A state agency, including an entity defined as a 
part of the state in section 3.732, subdivision 1, clause (1), 
may procure insurance against liability of the agency and its 
employees for damages resulting from the torts of the agency and 
its employees.  The procurement of this insurance constitutes a 
waiver of the limits or governmental liability to the extent of 
the liability stated in the policy but has no effect on the 
liability of the agency and its employees beyond the coverage as 
provided.  Procurement of commercial insurance, participation in 
the risk management fund under section 16B.85, or provisions of 
an individual self-insurance plan with or without a reserve fund 
or reinsurance does not constitute a waiver of any of the 
governmental immunities or exclusions under section 3.736. 
    Sec. 19.  Minnesota Statutes 1986, section 94.12, is 
amended to read:  
    94.12 [CONTRACT FOR DEED AND QUITCLAIM DEED.] 
    In the event a purchaser elects to purchase surplus real 
property on an installment basis, the commissioner of 
administration shall enter into a contract for deed with the 
purchaser thereof in which shall be set forth the description of 
the real property sold and the price thereof, the consideration 
paid and to be paid therefor, the rate of interest, and time and 
terms of payment.  This contract for deed shall be made 
assignable and shall further set forth that in case of the 
nonpayment of the annual principal or interest payment due by 
the purchaser, or any person claiming under the purchaser, then 
the contract for deed, from the time of such failure, will be 
entirely void and of no effect and the state may be repossessed 
of the lot or tract and may resell the same as provided in 
sections 94.09 to 94.16.  In the event the terms and conditions 
of a contract for deed are completely fulfilled or if a 
purchaser makes a lump sum payment for the subject property in 
lieu of entering into a contract for deed, the governor, upon 
the recommendation of the commissioner of administration, shall 
sign and cause to be issued a quitclaim deed on behalf of the 
state.  Said quitclaim deed shall be in a form prescribed by the 
attorney general and shall vest in purchaser all of the state's 
interest in the subject property except as provided in section 
94.14.  
    Sec. 20.  Minnesota Statutes 1987 Supplement, section 
115A.15, subdivision 6, is amended to read:  
    Subd. 6.  [RESOURCE RECOVERY REVOLVING ACCOUNT USE OF 
MATERIALS DISTRIBUTION REVOLVING FUND.] Upon the certification 
of the commissioner of administration, the commissioner of 
finance shall establish an account in the general services 
revolving fund, effective June 30, 1980, for the operation of 
the state government resource recovery program.  The revolving 
account shall consist of All funds appropriated by the state for 
the resource recovery program, all revenues resulting from the 
sale of recyclable and reusable commodities made available for 
sale as a result of the resource recovery program and all 
reimbursements to the commissioner of expenses incurred by the 
commissioner in developing and administering resource recovery 
systems for state agencies, local governments, and regional 
agencies governmental units, and nonprofit organizations must be 
deposited in the materials distribution revolving fund created 
in section 16B.28.  The account fund may be used for all 
activities associated with the program including payment of 
administrative and operating costs, except statewide and agency 
indirect costs.  The commissioner shall determine the waste 
disposal cost savings associated with recycling and reuse 
activities, collect those savings from the account responsible 
for disposing of wastes produced in state buildings, and credit 
the savings to the resource recovery revolving account materials 
distribution revolving fund. 
    Sec. 21.  Minnesota Statutes 1986, section 136.61, 
subdivision 1, is amended to read:  
    Subdivision 1.  The state board for community colleges 
shall consist consists of nine members appointed by the governor 
with the advice and consent of the senate.  They shall be 
selected for their knowledge of, and interest in community 
colleges of Minnesota.  One member shall be a full-time student 
at a community college at the time of appointment or shall have 
been a full-time student at a community college within one year 
before appointment to the state board for community colleges.  
Other than the student or recent graduate member, at least one 
member shall be a resident of each congressional district and 
two members shall be graduates of a community college in this 
state.  In making appointments to the board, the governor shall 
recognize the mission of the community college system and 
attempt to reflect the groups served by the mission.  
    Sec. 22.  Minnesota Statutes 1986, section 136.622, is 
amended to read:  
    136.622 [COMPUTER SALES AND MAINTENANCE TECHNICAL 
EQUIPMENT.] 
    Subdivision 1.  [PROPRIETARY PURCHASES.] Technical 
educational equipment may be procured for the state community 
colleges on request of the state board for community colleges 
either by brand designation or in accordance with standards and 
specifications the board may promulgate, notwithstanding chapter 
16B. 
    Subd. 2.  [COMPUTER SALES AND SUPPORT.] The state board for 
community colleges may sell computers and related products to 
its staff and students to advance their instructional and 
research abilities.  The board shall contract with a private 
vendor for service, maintenance, and support for computers and 
related products sold by the board. 
    Sec. 23.  Minnesota Statutes 1986, section 136.67, 
subdivision 2, is amended to read:  
    Subd. 2.  The state community college board may establish 
activity funds, except for dormitory purposes, and imprest cash 
funds, waive tuition charges, and act as agent and accept the 
benefits of Public Law Number 88-452, known as the Economic 
Opportunity Act of 1964, as amended, and Public Law Number 
85-864, known as the National Defense Education Act of 1958, as 
amended, to the same extent and subject to the same conditions 
as this authority is vested in the state university board.  
Sections 136.045; 136.142; 136.143; 136.144; 136.171; 136.22; 
136.56; 169.966; and 352.01, subdivision 2a, clause (6), also 
apply to the state community college board and the state 
community colleges in the same manner as to the state university 
board and the state universities. 
    Sec. 24.  [136.71] [NONPROFIT FOUNDATION PAYROLL 
DEDUCTION.] 
    Subdivision 1.  [REQUEST; WARRANT.] The commissioner of 
finance, upon the written request of an employee of a community 
college or the state board for community colleges, may deduct 
from an employee's salary or wages the amount requested for 
payment to a nonprofit community college foundation meeting the 
requirements in subdivision 2.  The commissioner shall issue a 
warrant for the deducted amount to the nonprofit foundation. 
    Subd. 2.  [FOUNDATION APPLICATION; APPROVAL.] A nonprofit 
foundation that desires to receive contributions through payroll 
deductions shall apply to the state board for approval to 
participate in the payroll deduction plan.  The board may 
approve the application for participation if the foundation:  
    (1) is tax exempt under section 501(c)3 of the Internal 
Revenue Code of 1986, as amended;  
    (2) qualifies for tax deductible contributions under 
section 170 of the Internal Revenue Code of 1986, as amended;  
    (3) secures funding solely for distribution to that 
community college; and 
    (4) has been incorporated according to chapter 317 for at 
least one calendar year before the date it applies to the state 
board for community colleges for approval. 
    Subd. 3.  [SOLICITATION.] Efforts to secure payroll 
deductions authorized in subdivision 1 may not interfere with, 
require a modification of, nor be conducted during the period of 
a payroll deduction fund drive for employees authorized by 
section 309.501. 
    Sec. 25.  [136.72] [CAPITAL PROJECTS BIDDING PROCEDURES.] 
    In awarding contracts for capital projects under section 
16B.09, the state board for community colleges shall consider 
the documentation provided by the bidders regarding their 
qualifications, including evidence of having successfully 
completed similar work, or delivering services or products 
comparable to that being requested.  The board shall set 
procedures to administer this section, which must include 
practices that will assist in the economic development of small 
businesses and small businesses owned and operated by socially 
or economically disadvantaged persons. 
    Sec. 26.  Minnesota Statutes 1987 Supplement, section 
168.012, subdivision 1, is amended to read:  
    Subdivision 1.  (a) The following vehicles are exempt from 
the provisions of this chapter requiring payment of tax and 
registration fees, except as provided in subdivision 1c:  
    (1) vehicles owned and used solely in the transaction of 
official business by representatives of foreign powers, by the 
federal government, the state, or any political subdivision; 
    (2) vehicles owned and used exclusively by educational 
institutions and used solely in the transportation of pupils to 
and from such institutions; 
    (3) vehicles owned by nonprofit charities and used 
exclusively to transport handicapped persons for educational 
purposes; 
    (4) vehicles owned and used by honorary consul or consul 
general of foreign governments. 
    (b) Vehicles owned by the federal government, municipal 
fire apparatus, police patrols and ambulances, the general 
appearance of which is unmistakable, shall not be required to 
register or display number plates.  
    (c) Unmarked vehicles used in general police work, arson 
investigations, and passenger vehicles, station wagons, and 
buses owned or operated by the department of corrections shall 
be registered and shall display passenger vehicle classification 
license number plates which shall be furnished by the registrar 
at cost.  Original and renewal applications for these passenger 
vehicle license plates authorized for use in general police work 
and for use by the department of corrections must be accompanied 
by a certification signed by the appropriate chief of police if 
issued to a police vehicle, the appropriate sheriff if issued to 
a sheriff's vehicle, the commissioner of corrections if issued 
to a department of corrections vehicle, or the appropriate 
officer in charge if issued to a vehicle of any other law 
enforcement agency.  The certification must be on a form 
prescribed by the commissioner and state that the vehicle will 
be used exclusively for a purpose authorized by this section.  
    (d) All other motor vehicles shall be registered and 
display tax exempt number plates which shall be furnished by the 
registrar at cost, except as provided in subdivision 1c.  All 
vehicles required to display tax exempt number plates shall have 
the name of the state department or public subdivision on the 
vehicle plainly printed displayed on both sides thereof in 
letters not less than 2-1/2 inches high, one and one-half inch 
wide and of a three-eighths inch stroke; except that each state 
hospital and institution for the mentally ill and mentally 
retarded may have one vehicle without the required printing 
identification on the sides of the vehicle.  Such printing 
identification shall be in a color giving a marked contrast with 
that of the part of the vehicle on which it is placed and 
shall be done with a good quality of paint that will endure 
throughout the term of the registration.  The printing 
identification must be on a part of the vehicle itself and not 
be on a removable plate or placard of any kind and shall be kept 
clean and visible at all times; except that a removable plate or 
placard may be utilized on vehicles leased or loaned to a 
political subdivision. 
    Sec. 27.  Minnesota Statutes 1986, section 214.07, 
subdivision 1, is amended to read:  
    Subdivision 1.  [BOARD REPORTS.] The health-related 
licensing boards and the non-health-related licensing boards 
shall prepare reports by October 1 of each even-numbered year on 
forms prepared by the commissioner of administration.  Copies of 
the reports shall be delivered to the legislature in accordance 
with section 3.195, and to the governor and the commissioner of 
administration.  Copies of the reports of the health-related 
licensing boards shall also be delivered to the commissioner of 
health.  The reports shall contain the following information 
relating to the two-year period ending the previous June 30: 
    (a) a general statement of board activities; 
    (b) the number of meetings and approximate total number of 
hours spent by all board members in meetings and on other board 
activities; 
    (c) the receipts and disbursements of board funds; 
    (d) the names of board members and their addresses, 
occupations, and dates of appointment and reappointment to the 
board; 
    (e) the names and job classifications of board employees; 
    (f) a brief summary of board rules proposed or adopted 
during the reporting period with appropriate citations to the 
State Register and published rules; 
    (g) the number of persons having each type of license and 
registration issued by the board as of June 30 in the year of 
the report; 
    (h) the locations and dates of the administration of 
examinations by the board; 
    (i) the number of persons examined by the board with the 
persons subdivided into groups showing age categories, sex, and 
states of residency; 
    (j) the number of persons licensed or registered by the 
board after taking the examinations referred to in clause (h) 
with the persons subdivided by age categories, sex, and states 
of residency; 
    (k) the number of persons not licensed or registered by the 
board after taking the examinations referred to in clause (h) 
with the persons subdivided by age categories, sex, and states 
of residency; 
    (l) the number of persons not taking the examinations 
referred to in clause (h) who were licensed or registered by the 
board or who were denied licensing or registration with the 
reasons for the licensing or registration or denial thereof and 
with the persons subdivided by age categories, sex, and states 
of residency; 
    (m) the number of persons previously licensed or registered 
by the board whose licenses or registrations were revoked, 
suspended, or otherwise altered in status with brief statements 
of the reasons for the revocation, suspension or alteration; 
    (n) the number of written and oral complaints and other 
communications received by the executive secretary of the board, 
a board member, or any other person performing services for the 
board (1) which allege or imply a violation of a statute or rule 
which the board is empowered to enforce and (2) which are 
forwarded to other agencies as required by section 214.10; 
    (o) a summary, by specific category, of the substance of 
the complaints and communications referred to in clause (n) and, 
for each specific category, the responses or dispositions 
thereof pursuant to section 214.10 or 214.11; 
    (p) any other objective information which the board members 
believe will be useful in reviewing board activities. 
    Sec. 28.  Minnesota Statutes 1986, section 382.153, is 
amended to read:  
    382.153 [BONDING OF COUNTY OFFICERS AND EMPLOYEES.] 
    Subdivision 1.  In counties now or hereafter having a 
population of more than 250,000, when a corporate surety bond 
has been furnished by any county officer or employee pursuant to 
statute or resolution of the county board, the premium therefor 
shall be paid by the county, provided that the county board may 
designate the surety.  
    The county board shall cause to be published in its 
official publication, a notice for bids for the furnishing of 
all such bonds and shall award a contract to the lowest 
responsible bidder.  
    Subd. 2.  In any county, in lieu of the individual bonds 
required to be furnished by county officers or by county 
employees, a schedule or position bond or undertaking may be 
given by county officers or by the employees of each county 
office or department, or a single corporate surety fidelity, 
schedule or position bond or undertaking covering all the 
officers and employees of any such county including officers and 
employees required by law to furnish an individual bond or 
undertaking may be furnished, in the respective amounts fixed by 
law, or by the person or board authorized by law to fix the 
same, conditioned substantially as provided in section 574.13, 
and upon a form to be prescribed by the commissioner of 
administration.  
    Sec. 29.  [INITIAL SMOKING POLICIES.] 
    A state agency required to adopt a smoking policy under 
section 9 shall submit its initial policy and plan for 
implementation to the commissioners of administration, employee 
relations, and health by January 1, 1989.  
    Sec. 30.  Laws 1987, chapter 365, section 24, is amended to 
read: 
     Sec. 24.  [INSTRUCTION TO REVISOR.] 
     The revisor of statutes shall renumber Minnesota Statutes, 
section 4.31, subdivisions 1 and to 5, in chapter 16B. 
    Sec. 31.  [EFFECTIVE DATE.] 
    Section 3 is effective the day following final enactment.  
Sections 2, 4 to 8, 10 to 28, and 30 are effective July 1, 1988. 
Sections 9 and 29 are effective January 1, 1989. 
    Approved April 24, 1988