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Minnesota Session Laws - 1995, Regular Session

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

                            CHAPTER 254-S.F.No. 1678 
                  An act relating to the organization and operation of 
                  state government; appropriating money for the general 
                  legislative and administrative expenses of state 
                  government; providing for the transfer of certain 
                  money in the state treasury; fixing and limiting the 
                  amount of fees, penalties, and other costs to be 
                  collected in certain cases; amending Minnesota 
                  Statutes 1994, sections 3.85, subdivision 12; 3.9741, 
                  subdivision 2, as amended; 3C.02, by adding a 
                  subdivision; 7.09, subdivision 1; 8.16, by adding a 
                  subdivision; 15.061; 15.415; 15.50, subdivision 2; 
                  15.91, subdivision 2; 16A.11, by adding a subdivision; 
                  16A.127, subdivision 8; 16A.129, subdivision 3; 
                  16A.28, subdivisions 5 and 6; 16A.40; 16A.57; 16A.72; 
                  16B.06, by adding a subdivision; 16B.17; 16B.19, 
                  subdivisions 2 and 10; 16B.42, subdivision 3; 16B.59; 
                  16B.60, subdivisions 1 and 4; 16B.61, subdivisions 1, 
                  2, and 5; 16B.63, subdivision 3; 16B.65, subdivisions 
                  1, 3, 4, and 7; 16B.67; 16B.70; 16B.75; 16B.88, 
                  subdivisions 1, 2, 3, and 4; 16D.02, subdivision 6, 
                  and by adding a subdivision; 16D.04, subdivisions 1 
                  and 3; 16D.06; 16D.08, subdivision 2; 43A.27, 
                  subdivisions 2 and 3; 115C.02, by adding a 
                  subdivision; 115C.08, subdivisions 1, 2, and 4; 
                  116G.15; 197.05; 240.155, subdivision 1; 240.24, 
                  subdivision 3; 240A.08; 240A.09; 240A.10; 349.151, 
                  subdivision 4b; 349A.02, subdivision 1; 349A.03, by 
                  adding a subdivision; 349A.04; 349A.05; 349A.06, 
                  subdivision 2; 349A.08, subdivisions 5 and 7; 349A.10, 
                  by adding a subdivision; 349A.11; 349A.12, subdivision 
                  4; 352.15, subdivision 3; 366.10; 366.12; 366.16; 
                  394.33, subdivision 2; 394.361, subdivision 3; 
                  462.358, subdivisions 2a, 2b, and 9; 462.359, 
                  subdivision 4; and 491A.02, subdivision 4; Laws 1991, 
                  chapter 235, article 5, section 3; proposing coding 
                  for new law in Minnesota Statutes, chapters 3; 16A; 
                  16B; 16D; and 43A; repealing Minnesota Statutes 1994, 
                  sections 115C.02, subdivision 1a; 349A.01, subdivision 
                  2; and 349A.02, subdivision 8. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
        Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another fund named, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "1995," "1996," and "1997," where used in this act, mean 
        that the appropriation or appropriations listed under them are 
        available for the year ending June 30, 1995, June 30, 1996, or 
        June 30, 1997, respectively.  
                                SUMMARY BY FUND 
                                                             BIENNIAL
                   1995           1996          1997           TOTAL
        General  $790,000    $254,009,000   $254,050,000   $508,059,000
        Local 
        Government Trust          431,000                       431,000
        State 
        Government 
        Special Revenue        10,360,000     10,491,000     20,851,000 
        Environmental             208,000        208,000        416,000
        Landfill
        Cleanup                    75,000         75,000        150,000
        Highway User            1,682,000      1,687,000      3,369,000
        Trunk Highway              32,000         32,000         64,000 
        Workers'
        Compensation            4,171,000      4,176,000      8,347,000 
        Computer Services         626,000        626,000      1,252,000 
        TOTAL    $790,000    $271,594,000   $271,345,000   $542,939,000 
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1996         1997 
        Sec. 2.  LEGISLATURE 
        Subdivision 1.  Total  
        Appropriation                         47,776,000     50,296,000
                      Summary by Fund
        General              47,744,000    50,264,000
        Trunk Highway            32,000        32,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Senate                      15,422,000     16,163,000
        Subd. 3.  House of Representatives    20,833,000     22,943,000
        Subd. 4.  Legislative 
        Coordinating Commission               11,521,000     11,190,000
                      Summary by Fund
        General              11,489,000    11,158,000
        Trunk Highway            32,000        32,000
        $4,062,000 the first year and 
        $4,438,000 the second year are for the 
        office of the revisor of statutes. 
        $945,000 the first year and $945,000 
        the second year are for the legislative 
        reference library. 
        $4,400,000 the first year and 
        $4,294,000 the second year are for the 
        office of the legislative auditor. 
        $40,000 the first year of the 
        appropriation to the legislative 
        auditor is for the legislative auditor 
        to evaluate the statewide systems 
        project, if directed by the legislative 
        audit commission.  The legislative 
        audit commission shall consider 
        directing the legislative auditor to 
        evaluate the computerized systems 
        developed as part of the statewide 
        systems project and determine the 
        extent to which the systems have saved 
        or are likely to save money in the 
        administrative functions of state 
        government, and recommend ways the 
        systems could be used to save money and 
        increase the productivity of the 
        administrative functions of state 
        government.  The legislative auditor 
        should give particular but not 
        exclusive attention to the systems' 
        impacts on the administrative functions 
        of smaller organizations in state 
        government. 
        The legislative audit commission shall 
        consider directing the legislative 
        auditor to evaluate the administrative 
        functions of the small state agencies 
        and other small organizations in the 
        executive branch of state government, 
        such as boards and commissions, and 
        recommend ways those functions could be 
        provided more cost-effectively.  The 
        commission shall give special 
        consideration to centralizing the human 
        resources, management complement, and 
        accounting functions of these small 
        organizations.  A report of the 
        evaluation must be submitted to the 
        commission by October 1, 1995. 
        The legislative audit commission is 
        requested to consider directing the 
        legislative auditor to conduct a full 
        program evaluation of the department of 
        human rights in calendar year 1995. 
        $20,000 the first year and $10,000 the 
        second year are for the legislative 
        coordinating commission to contract for 
        needed services to ensure that sign 
        language interpreter services are 
        available at all times during the 
        legislative sessions. 
        Subd. 5.  Compensation Council
        The salary increases recommended by the 
        compensation council on April 1, 1995, 
        for legislators, constitutional 
        officers, and judges may not take 
        effect unless ratified or approved as 
        modified by another bill enacted by the 
        1995 legislature. 
        Sec. 3.  GOVERNOR AND 
        LIEUTENANT GOVERNOR                    3,507,000      3,504,000
        This appropriation is to fund the 
        offices of the governor and lieutenant 
        governor.  
        $19,000 the first year and $19,000 the 
        second year are for necessary expenses 
        in the normal performance of the 
        governor's and lieutenant governor's 
        duties for which no other reimbursement 
        is provided. 
        $97,000 the first year and $97,000 the 
        second year are for membership dues of 
        the National Governors Association. 
        $20,000 the first year and $20,000 the 
        second year are for the Council of 
        Great Lakes Governors. 
        The commissioner of finance shall 
        report to the chairs of the state 
        government finance division of the 
        senate and the state government finance 
        division of the house of 
        representatives any personnel costs 
        incurred by the office of the governor 
        and the lieutenant governor that were 
        supported by appropriations to other 
        agencies during the previous fiscal 
        year.  The office of the governor shall 
        inform the chairs of the divisions 
        before initiating any interagency 
        agreements. 
        Sec. 4.  STATE AUDITOR                 7,136,000      7,144,000
        Sec. 5.  STATE TREASURER               2,477,000      2,478,000
        $1,600,000 the first year and 
        $1,600,000 the second year are for the 
        treasurer to pay for banking services 
        by fees rather than by compensating 
        balances. 
        Sec. 6.  ATTORNEY GENERAL 
        Subdivision 1.  Total  
        Appropriation                         24,408,000     22,499,000
                      Summary by Fund
        General              22,589,000    20,678,000
        State Government
        Special Revenue       1,628,000     1,630,000
        Environmental           116,000       116,000 
        Landfill Cleanup         75,000        75,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Government Services 
             4,358,000      4,371,000
                      Summary by Fund
        General               2,730,000     2,741,000
        State Government
        Special Revenue       1,628,000     1,630,000
        Subd. 3.  Public and 
        Human Resources
             3,316,000      3,335,000
                      Summary by Fund
        General               3,241,000     3,260,000
        Landfill Cleanup         75,000        75,000
        Subd. 4.  Law Enforcement 
             4,060,000      4,079,000
                      Summary by Fund
        General               3,944,000     3,963,000
        Environmental           116,000       116,000
        Subd. 5.  Legal Policy and 
        Administration 
             5,760,000      3,760,000
        Subd. 6.  Business Regulation 
             3,509,000      3,528,000
        Subd. 7.  Solicitor General  
             3,405,000      3,426,000
        Sec. 7.  ETHICAL PRACTICES BOARD         441,000        446,000
        Sec. 8.  INVESTMENT BOARD              2,092,000      2,093,000
        $40,000 each year is for local relief 
        association account management. 
        Sec. 9.  ADMINISTRATIVE HEARINGS      3,946,000      3,826,000
        This appropriation is from the workers' 
        compensation special compensation fund 
        for considering workers' compensation 
        claims. 
        $100,000 the first year and $100,000 
        the second year are for an internship 
        program in which students at Minnesota 
        law schools will serve as law clerks 
        for judges in the workers' compensation 
        division. 
        $180,000 the first year and $180,000 
        the second year are for additional 
        clerical support for workers' 
        compensation judges. 
        $125,000 the first year is for a mapper 
        board calendaring system. 
        Sec. 10.  OFFICE OF STRATEGIC 
        AND LONG-RANGE PLANNING                3,943,000      3,917,000
        $1,026,000 the first year and 
        $1,027,000 the second year are for the 
        land management information center. 
        Sec. 11.  ADMINISTRATION 
        Subdivision 1.  Total 
        Appropriation                         29,231,000     29,145,000
                      Summary by Fund
        General              20,238,000    20,148,000
        State Government 
        Special Revenue       8,367,000     8,371,000
        Computer Services       626,000       626,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Operations Management 
             3,358,000      3,323,000
        The house and senate governmental 
        operations committees shall study and 
        report to the legislature by January 
        15, 1996, on the desirability of 
        leasing versus purchasing state 
        vehicles, and on maintenance costs for 
        vehicles under the current system.  If 
        the study finds that it would be 
        desirable, during the year ending June 
        30, 1997, the central motor pool shall 
        not purchase any new vehicles and shall 
        not sell any vehicles with less than 
        100,000 miles. 
        Subd. 3.  Intertechnologies Group
             7,778,000      7,768,000
                      Summary by Fund
        General                 727,000       717,000
        State Government 
        Special Revenue       6,425,000     6,425,000
        Computer Services       626,000       626,000 
        The appropriation from the special 
        revenue fund is for recurring costs of 
        911 emergency telephone service.  
        $100,000 the first year and $90,000 the 
        second year are for transfer to the 
        commissioner of human services to add 
        an aging accounts payable module to the 
        Medicaid management information system. 
        Subd. 4.  Facilities Management 
            10,198,000     10,225,000
                      Summary by Fund
        General               8,318,000     8,341,000
        State Government 
        Special Revenue       1,880,000     1,884,000
        $4,850,000 the first year and 
        $4,882,000 the second year are for 
        office space costs of the legislature 
        and veterans organizations, for 
        ceremonial space, and for statutorily 
        free space. 
        The appropriation from the special 
        revenue fund is from building code 
        surcharge receipts for operation of the 
        building codes and standards division.  
        In addition, building code surcharge 
        and fee receipts of more than 
        $2,900,000 the first year and 
        $2,900,000 the second year are 
        appropriated from the special revenue 
        fund to the commissioner of 
        administration for the building codes 
        and standards division. 
        $150,000 the first year and $150,000 
        the second year from the special 
        revenue fund is for transfer by the 
        commissioner of finance to the general 
        fund. 
        The commissioner shall review the 
        Uniform Code for Building Conservation, 
        and report to the legislature by 
        January 15, 1996, on legislation or 
        rules needed to implement this code in 
        a manner that is consistent with the 
        state building code. 
        $20,000 the first year is to clean, 
        refit, and rehabilitate the statue of 
        Leif Erikson on the grounds of the 
        state capitol. 
        Notwithstanding any law to the 
        contrary, if the facility is accessible 
        to disabled people, the Prairie Lakes 
        Juvenile Detention Center need not 
        install an elevator. 
        This appropriation includes money to 
        pay increased rental costs incurred by 
        the board of the arts. 
        Subd. 5.  Administrative Management 
             2,211,000     2,216,000
                      Summary by Fund
        General               2,149,000     2,154,000
        State Government 
        Special Revenue          62,000        62,000
        $2,000 the first year and $2,000 the 
        second year are for the state 
        employees' band. 
        $62,000 each year to the commissioner 
        of administration is to be used for 
        processing and oversight of grants and 
        allocations in the oil overcharge 
        program.  This appropriation is from 
        oil overcharge money, as defined in 
        Minnesota Statutes, section 4.071, in 
        the special revenue fund. 
        The targeted group purchasing study 
        required by Minnesota Statutes, section 
        16B.19, subdivision 2b, need not be 
        completed during the biennium ending 
        June 30, 1997. 
        Subd. 6.  Information Policy Office
             1,977,000      1,903,000
        $25,000 the first year and $100,000 the 
        second year for the government 
        information access council is available 
        only as matched, dollar for dollar, by 
        contributions from nonstate sources. 
        The information policy office, with the 
        advice of the attorney general, shall 
        monitor all computer systems 
        development projects conducted by state 
        agencies to assure that full 
        performance of contract requirements is 
        achieved and that any remedies provided 
        in such contracts for nonperformance or 
        inadequate performance are fully 
        pursued.  The information policy office 
        and the attorney general shall report 
        to the legislature by January 15, 1996, 
        on performance of contract requirements 
        related to large systems such as the 
        statewide systems project, and 
        Minnesota Medicaid Management 
        Information System, and the information 
        systems related to drivers' licenses. 
        Subd. 7.  Management Analysis 
               565,000        566,000
        Subd. 8.  Public Broadcasting 
             3,054,000      3,054,000
        $1,450,000 the first year and 
        $1,450,000 the second year are for 
        matching grants for public television.  
        Public television grant recipients 
        shall give special emphasis to 
        children's programming.  In addition, 
        public television grant recipients 
        shall promote program and outreach 
        initiatives that attempt to reduce 
        youth violence in our communities.  
        $600,000 the first year and $600,000 
        the second year are for public 
        television equipment needs.  Equipment 
        grant allocations shall be made after 
        considering the recommendations of the 
        Minnesota public television association.
        $320,000 the first year and $320,000 
        the second year are for community 
        service grants to public educational 
        radio stations, which must be allocated 
        after considering the recommendations 
        of the Association of Minnesota Public 
        Educational Radio Stations under 
        Minnesota Statutes, section 129D.14. 
        $494,000 the first year and $494,000 
        the second year are for equipment 
        grants to public radio stations.  These 
        grants must be allocated after 
        considering the recommendations of the 
        Association of Minnesota Public 
        Educational Radio Stations and 
        Minnesota Public Radio, Inc. 
        $15,000 each year is for a grant to the 
        association of Minnesota public 
        education radio stations for station 
        KMOJ.  This money may be used for 
        equipment. 
        $150,000 the first year and $150,000 
        the second year are for public 
        information television transmission of 
        legislative activities.  At least 
        one-half must go for programming to be 
        broadcast in rural Minnesota. 
        $25,000 the first year and $25,000 the 
        second year are for grants to the Twin 
        Cities regional cable channel. 
        If an appropriation for either year for 
        grants to public television or radio 
        stations is not sufficient, the 
        appropriation for the other year is 
        available for it. 
        Subd. 9.  Children's Museum 
                90,000         90,000
        This appropriation is for a grant to 
        the Minnesota Children's Museum. 
        Sec. 12.  INTERGOVERNMENTAL INFORMATION 
        SYSTEMS ADVISORY COUNCIL                 186,000        187,000
        These amounts must be subtracted from 
        the amount that would otherwise be 
        payable to local government aid under 
        Minnesota Statutes, chapter 477A, in 
        order to fund the intergovernmental 
        information systems advisory council. 
        The appropriation for a local 
        government financial reporting system 
        in Laws 1994, chapter 587, article 3, 
        section 3, clause (5), is available 
        until expended. 
        Sec. 13.  CAPITOL AREA ARCHITECTURAL 
        AND PLANNING BOARD                       358,000        262,000
        $50,000 the first year is for predesign 
        and design of a Minnesota Korean war 
        veterans' memorial on the capitol 
        grounds.  This appropriation is 
        available until expended.  In creating 
        the memorial, the board may accept 
        money from nonstate sources.  The board 
        shall select a site for the memorial 
        and conduct a selection process to 
        award the contracts for design and 
        construction of the memorial.  
        $50,000 the first year is to maintain 
        the police and peace officers memorial 
        on the capitol mall.  This 
        appropriation is available until spent. 
        The capitol area architectural and 
        planning board shall provide a 
        preliminary planning and programming 
        report for a human development center 
        in or near the capitol area of St. 
        Paul.  The planning and studies must be 
        done in collaboration with the city of 
        St. Paul foundations including, but not 
        limited to, the Minnesota Education 
        Foundation, the private sector, and 
        appropriate state departments 
        including, but not limited to, 
        administration, health, education, and 
        human services.  The focus of the 
        center will be on the development of 
        the human person.  The center is 
        intended to serve as a research and 
        demonstration center and will be the 
        result of a partnership between the 
        public and private sector.  The board 
        shall report the results of its studies 
        to the governor and legislature no 
        later than December 15, 1996. 
        Sec. 14.  FINANCE 
        Subdivision 1.  Total 
        Appropriation                         20,583,000     20,651,000
                      Summary by Fund
        General              20,478,000    20,651,000
        Local Government
        Trust                   105,000      
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Accounting Services  
             3,986,000      4,003,000
        Subd. 3.  Accounts Receivable
        Operations
             4,327,000      3,577,000
        $600,000 the first year is for 
        modification and enhancement of the 
        accounts receivable system. 
        The commissioner of finance may 
        transfer money, as deemed necessary, to 
        other state agencies participating in 
        the accounts receivable project.  
        $175,000 the first year and $25,000 the 
        second year are for the debt collection 
        pilot program in article 5, section 16. 
        During the biennium ending June 30, 
        1997, to the extent feasible and 
        cost-effective, any new jobs created in 
        the debt collections entity must be 
        located in a county in greater 
        Minnesota that had a population loss of 
        five percent or more between the 1980 
        and 1990 census. 
        Subd. 4.  Budget Services 
             2,026,000      2,026,000
                      Summary by Fund
        General               1,921,000     2,026,000
        Local Government
        Trust                   105,000      
        Subd. 5.  Economic Analysis  
               299,000        308,000
        Subd. 6.  Information Services 
             8,920,000      9,643,000
        Subd. 7.  Management Services 
             1,525,000      1,594,000
        Subd. 8.  General Reduction 
              (500,000)      (500,000) 
        The commissioner of finance shall make 
        reductions of $1,000,000 from programs 
        funded in this section.  The reductions 
        may be made in either year of the 
        biennium.* (The preceding portion of 
        subdivision 8 beginning "Subd. 8." was 
        vetoed by the governor.) 
        If federal funding for programs is 
        reduced or eliminated during the 
        biennium ending June 30, 1997, the 
        commissioner shall ensure to the extent 
        possible that the costs of reducing or 
        terminating the programs supported by 
        those funds are paid by federal funds. 
        Sec. 15.  EMPLOYEE RELATIONS 
        Subdivision 1.  Total 
        Appropriation                          7,726,000      7,731,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Human Resources
        Management
             6,894,000      6,899,000
        $325,000 each year is for a one-time 
        redesign of the state's human resources 
        programs, processes and policies, 
        including, but not limited to, 
        improving the employee performance 
        management process, recruitment and 
        hiring, retraining and deployment 
        capabilities, and classification of 
        state positions. 
        $190,000 the first year and $185,000 
        the second year are to expand and 
        target state workforce diversity 
        efforts.  These funds are to support 
        expanded, dedicated functions serving 
        protected groups in obtaining and 
        retaining state employment, and secure 
        greater opportunities for advancement 
        within state employment ranks for 
        under-represented groups.  The 
        commissioner must allocate these funds 
        exclusively to the purposes described 
        in the diversity-related budget 
        initiative in the governor's proposed 
        biennial budget for the department of 
        employee relations for the biennium 
        ending June 30, 1997.  The 1996 and 
        1998 performance reports prepared by 
        the commissioner under Minnesota 
        Statutes, sections 15.90 to 15.92, must 
        contain a separate section presenting 
        the agency's activities and the 
        outcomes attributable to implementation 
        of the diversity functions expanded or 
        improved pursuant to this 
        appropriation.  The commissioner of 
        finance shall include these amounts 
        when determining the base appropriation 
        level for the department of employee 
        relations for the biennium ending June 
        30, 1999. 
        Any unexpended balance on June 30, 
        1995, from the appropriations in Laws 
        1993, chapter 192, section 18, 
        subdivision 2, for implementation of 
        human resources management projects 
        does not cancel but is available for 
        expenditure in the 1996-1997 biennium. 
        This appropriation includes money for a 
        grant each year to the government 
        training service. 
        $75,000 the first year and $75,000 the 
        second year are for the Minnesota 
        quality college created by new 
        Minnesota Statutes, section 43A.211. 
        In order to maximize delivery of 
        services to the public, if layoffs of 
        state employees as defined in Minnesota 
        Statutes, chapter 43A, are necessary 
        during the biennium ending June 30, 
        1997, each agency with more than 50 
        full-time equivalent employees must 
        reduce at least the same percentage of 
        management and supervisory personnel as 
        line and support personnel. 
        If a state agency is to be abolished, 
        the classified positions of the agency 
        to be abolished with its incumbent 
        employees shall be transferred as 
        provided by Minnesota Statutes, section 
        15.039, subdivision 7.  The 
        commissioner of employee relations 
        shall assist agencies and bargaining 
        units to reach agreements that provide 
        options to layoff for affected 
        employees in accordance with Minnesota 
        Statutes, section 43A.045, as 
        interpreted by collective bargaining 
        agreements.  
        State agencies must demonstrate that 
        they cannot use available staff before 
        hiring outside consultants or 
        services.  As state agencies implement 
        reductions in their operating budgets 
        in the biennium ending June 30, 1997, 
        agencies shall give priority to 
        reducing spending on professional and 
        technical contracts before laying off 
        permanent employees.  Agencies must 
        report on the specific manner in which 
        this directive is implemented to the 
        senate finance and house ways and means 
        committees by February 1, 1996, and 
        February 1, 1997.  Where outside 
        consultants and services are necessary, 
        agencies are encouraged to negotiate 
        contracts that will involve permanent 
        staff so as to upgrade and maximize 
        training of state personnel.  Money 
        spent on outside professional, 
        technical, and computer service 
        consultants must be reported by 
        February 1, 1997, to the senate finance 
        and house of representatives ways and 
        means committees. 
        During the biennium ending June 30, 
        1997, no two federated funding 
        campaigns that are related 
        organizations, as defined in Minnesota 
        Statutes, section 317A.011, subdivision 
        18, may be registered to participate in 
        the state employee combined charitable 
        campaign. 
        Subd. 3.  Employee Insurance
               832,000        832,000
        $104,000 the first year and $104,000 
        the second year from the general fund 
        are for the right-to-know contracts 
        administered through the employee 
        insurance division. 
        $728,000 the first year and $728,000 
        the second year from the general fund 
        are for workers' compensation 
        reinsurance premiums.  If the 
        appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available. 
        The commissioner of finance shall 
        transfer in the second year of the 
        biennium $2,000,000 from the public 
        employees' insurance program account 
        within the employee benefits internal 
        service fund to the general fund. 
        During the biennium ending June 30, 
        1997, the commissioner shall continue 
        the health promotion and disease 
        prevention program for state employees 
        initiated in fiscal year 1994. 
        Sec. 16.  REVENUE 
        Subdivision 1.  Total  
        Appropriation                         75,904,000     74,975,000
                      Summary by Fund
        General              73,804,000    73,196,000
        Local Government
        Trust                   326,000      
        Highway User          1,682,000     1,687,000
        Environmental            92,000        92,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Income Tax 
            12,802,000     11,502,000
        $1,300,000 in fiscal year 1996 is for 
        payment of overtime to experienced 
        corporate audit staff to complete 
        processing of bank refund claims, and 
        to add temporary positions to perform 
        duties of personnel who have been 
        diverted to other duties associated 
        with bank refund claims.  Expenditures 
        and collections associated with this 
        appropriation must be reported 
        separately.  This amount is available 
        until June 30, 1997, and must not be 
        included in the budget base for the 
        biennium ending June 30, 1999. 
        Subd. 3.  Sales and Special Taxes 
            13,200,000     13,205,000
                      Summary by Fund
        General              11,347,000    11,426,000
        Local Government
        Trust                    79,000          -0- 
        Highway User          1,682,000     1,687,000
        Environmental            92,000        92,000
        Subd. 4.  Property Tax and State Aids 
             2,880,000      2,880,000
                      Summary by Fund
        General               2,855,000     2,880,000
        Local Government
        Trust                    25,000         -0-
        $75,000 the first year and $75,000 the 
        second year must be subtracted from the 
        total taconite production tax revenues 
        distributed to local units of 
        government.  These amounts shall be 
        credited to the general fund and 
        appropriated to the department of 
        revenue for the costs and expenses 
        incurred by the department in 
        collecting and distributing taconite 
        production tax revenues. 
        Subd. 5.  Tax Operations 
            32,213,000     32,213,000
                      Summary by Fund
        General              32,030,000    32,213,000
        Local Government
        Trust                   183,000          -0-
        During the biennium ending June 30, 
        1997, the commissioner shall not spend 
        more money to enforce the unfair 
        cigarette sales laws than the revenue 
        derived from fees imposed under the law.
        Subd. 6.  Legal and Research 
             3,728,000      3,728,000
                      Summary by Fund
        General               3,689,000     3,728,000
        Local Government
        Trust                    39,000          -0-
        Subd. 7.  Administrative Support 
            11,431,000     11,847,000
        Subd. 8.  General Reduction  
              (350,000)      (400,000)
        The commissioner shall allocate the 
        general reduction among the 
        department's programs. 
        Sec. 17.  AMATEUR SPORTS 
        COMMISSION                             1,938,000      1,942,000
        (a) $45,000 each year is for the 
        following purposes: 
        (1) Target Center programming; and 
        (2) development of more amateur sports 
        opportunities for women, girls, 
        seniors, inner-city youth, and athletes 
        with special needs. 
        The amateur sports commission must work 
        with staff of the city of Minneapolis 
        and the metropolitan sports facilities 
        commission to:  research Minnesota's 
        capabilities to attract local, 
        national, and international amateur 
        events; meet with appropriate national 
        amateur sports governing bodies and 
        Olympic officials on a regular basis; 
        and create new grassroots events; all 
        of which will have a favorable economic 
        impact on the state. 
        (b) Of this appropriation: 
        (1) $1,226,000 the first year and 
        $1,227,000 the second year are for 
        grants for ice centers, under Minnesota 
        Statutes, section 240A.09, of up to 
        $250,000 each; 
        (2) $200,000 each year is for 
        renovation grants for existing ice 
        arenas; and 
        (3) $11,000 each year is for ice arena 
        technical assistance. 
        Sec. 18.  HUMAN RIGHTS   
        Subdivision 1.  Total 
        Appropriation                          3,446,000      3,263,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Contract Compliance 
               370,000        370,000
        Subd. 3.  Complaint Processing
             2,214,000      2,220,000
        Subd. 4.  Management Services
               862,000        673,000
        Sec. 19.  MILITARY AFFAIRS  
        Subdivision 1.  Total 
        Appropriation                          9,337,000     9,416,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Maintenance of Training 
        Facilities 
             5,431,000      5,497,000
        The appropriation for planning and 
        remodeling grants for 12 armories 
        scheduled to be sold or disposed of 
        pursuant to Laws 1992, chapter 511, 
        article 2, section 50, is available 
        until June 30, 1997. 
        Any unexpended and unencumbered 
        appropriation for the biennium ending 
        June 30, 1995, for the tuition 
        reimbursement program does not cancel, 
        but is carried forward and may be used 
        to pay assessments due to the cities of 
        New Brighton, Montevideo, Park Rapids, 
        and Rosemount. 
        Subd. 3.  General Support
             1,555,000      1,568,000
        $75,000 the first year and $75,000 the 
        second year are for expenses of 
        military forces ordered to active duty 
        under Minnesota Statutes, chapter 192.  
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  
        Subd. 4.  Enlistment Incentives
             2,351,000      2,351,000 
        Obligations for the reenlistment bonus 
        program, suspended on December 31, 
        1991, shall be paid from the amounts 
        available within the enlistment 
        incentives program. 
        If appropriations for either year of 
        the biennium are insufficient, the 
        appropriation from the other year is 
        available.  The appropriations for 
        enlistment incentives are available 
        until expended. 
        Sec. 20.  VETERANS AFFAIRS             3,832,000      3,820,000
        $230,000 the first year and $230,000 
        the second year are for grants to 
        county veterans offices for training of 
        county veterans service officers. 
        $1,544,000 the first year and 
        $1,544,000 the second year are for 
        emergency financial and medical needs 
        of veterans.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it.  
        With the approval of the commissioner 
        of finance, the commissioner of 
        veterans affairs may transfer the 
        unencumbered balance from the veterans 
        relief program to other department 
        programs during the fiscal year.  The 
        commissioner of veterans affairs shall 
        provide background information 
        explaining why the unencumbered balance 
        exists.  The amounts transferred must 
        be identified to the chairs of the 
        senate finance committee division on 
        state government and the house 
        governmental operations and gambling 
        committee division on state government 
        finance. 
        $250,000 the first year and $250,000 
        the second year are for a grant to the 
        Vinland National Center. 
        $16,200 is to be used to make a 
        contribution toward the women in 
        military service memorial at the 
        entrance to Arlington National Cemetery.
        $30,000 is to fund a program of the 
        Minnesota state council of the Vietnam 
        Veterans of America to assist Vietnam 
        veterans and Vietnam-era veterans in 
        the preparation and presentation of 
        their claims to the United States 
        government for compensation and other 
        benefits to which they are entitled as 
        a result of disabilities incurred in 
        military service.  This appropriation 
        may not be used for membership 
        recruitment.  This appropriation is 
        available until June 30, 1997. 
        Sec. 21.  VETERANS OF FOREIGN 
        WARS                                      41,000         41,000
        For carrying out the provisions of Laws 
        1945, chapter 455. 
        Sec. 22.  MILITARY ORDER OF 
        THE PURPLE HEART                          20,000         20,000
        Sec. 23.  DISABLED AMERICAN VETERANS      12,000         12,000
        For carrying out the provisions of Laws 
        1941, chapter 425. 
        Sec. 24.  LAWFUL GAMBLING  
        CONTROL                                2,081,000      2,039,000
        If the amount of unclaimed prize money 
        in the lottery prize fund during fiscal 
        year 1996 exceeds $5,000,000, 60 
        percent of the excess that is not added 
        to prize pools of subsequent games is 
        appropriated in fiscal year 1997 to the 
        gambling control board for information 
        systems.  The amount appropriated under 
        this paragraph may not exceed $650,000. 
        Sec. 25.  RACING COMMISSION              370,000        370,000
        Sec. 26.  STATE LOTTERY
        The director of the state lottery shall 
        reimburse the general fund $150,000 the 
        first year and $150,000 the second year 
        for lottery-related costs incurred by 
        the department of public safety. 
        The director of the state lottery shall 
        reimburse the general fund $540,000 the 
        first year and $540,000 the second year 
        for amounts appropriated from the 
        general fund to the commissioner of 
        human services for compulsive gambling 
        hotline services, outpatient treatment 
        services, felony screening, and 
        compulsive gambling youth education. 
        Sec. 27.  GENERAL CONTINGENT 
        ACCOUNTS                                 500,000        500,000
                      Summary by Fund
        General                 150,000       150,000
        State Government 
        Special Revenue         250,000       250,000
        Workers' Compensation   100,000       100,000
        The appropriations in this section must 
        be spent with the approval of the 
        governor after consultation with the 
        legislative advisory commission under 
        Minnesota Statutes, section 3.30. 
        If an appropriation in this section for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        The special revenue appropriation is 
        available to be transferred to the 
        attorney general when the costs to 
        provide legal services to the health 
        boards exceed the biennial 
        appropriation to the attorney general 
        from the special revenue fund.  The 
        boards receiving the additional 
        services shall set their fees to cover 
        the costs. 
        Sec. 28.  TORT CLAIMS                    300,000        275,000
        To be spent by the commissioner of 
        finance.  
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  
        Sec. 29.  MINNESOTA STATE   
        RETIREMENT SYSTEM                      2,158,000      2,158,000
        The amounts estimated to be needed for 
        each program are as follows: 
        (a) Legislators 
             1,993,000      1,993,000
        Under Minnesota Statutes, sections 
        3A.03, subdivision 2; 3A.04, 
        subdivisions 3 and 4; and 3A.11. 
        (b) Constitutional Officers 
               165,000        165,000
        Under Minnesota Statutes, sections 
        352C.031, subdivision 5; 352C.04, 
        subdivision 3; and 352C.09, subdivision 
        2. 
        If an appropriation in this section for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        Sec. 30.  MINNEAPOLIS EMPLOYEES 
        RETIREMENT FUND                       11,005,000     11,005,000
        $10,455,000 the first year and 
        $10,455,000 the second year are to the 
        commissioner of finance for payment to 
        the Minneapolis employees retirement 
        fund under Minnesota Statutes, section 
        422A.101, subdivision 3.  Payment must 
        be made in four equal installments, 
        March 15, July 15, September 15, and 
        November 15, each year.  
        $550,000 the first year and $550,000 
        the second year are to the commissioner 
        of finance for payment to the 
        Minneapolis employees retirement fund 
        for the supplemental benefit for 
        pre-1973 retirees under Minnesota 
        Statutes, section 356.865. 
        Sec. 31.  POLICE AND FIRE   
        AMORTIZATION AID                       6,420,000      6,420,000
        $5,020,000 the first year and 
        $5,020,000 the second year are to the 
        commissioner of revenue for state aid 
        to amortize the unfunded liability of 
        local police and salaried firefighters' 
        relief associations, under Minnesota 
        Statutes, section 423A.02. 
        $1,000,000 the first year and 
        $1,000,000 the second year are to the 
        commissioner of revenue for 
        supplemental state aid to amortize the 
        unfunded liability of local police and 
        salaried firefighters' relief 
        associations under Minnesota Statutes, 
        section 423A.02, subdivision 1a. 
        $400,000 the first year and $400,000 
        the second year are to the commissioner 
        of revenue to pay reimbursements to 
        relief associations for firefighter 
        supplemental benefits paid under 
        Minnesota Statutes, section 424A.10. 
        Sec. 32.  SMALL AGENCY 
        SUPPLEMENT                                    420,000    910,000
                     Summary by Fund
        General                 180,000       420,000
        State Government
        Special Revenue         115,000       240,000
        Workers'
        Compensation            125,000       250,000
        This appropriation is available in 
        either year of the biennium.  During 
        the biennium the commissioner shall 
        transfer the necessary dollars to the 
        small agency accounts, as determined by 
        the commissioner of finance, to cover 
        the costs of the collective bargaining 
        agreement.  
        The commissioner shall report to the 
        chair of the ways and means committee 
        of the house of representatives and the 
        chair of the finance committee of the 
        senate on the transfers made under 
        these provisions. 
        Sec. 33.  SALARY SUPPLEMENT
        The commissioner of finance, in 
        conjunction with the commissioner of 
        employee relations may transfer dollars 
        from unallocated balances within each 
        of the following funds to individual 
        agencies to cover the cost of 
        collective bargaining agreements 
        governing employees whose salaries are 
        paid from those funds:  state 
        government special revenue, health care 
        access, trunk highway, highway user, 
        state airport, game and fish, natural 
        resources, workers' compensation 
        special, environmental, and special 
        revenue.  The amounts necessary for 
        these transfers are appropriated from 
        each fund.  The amount appropriated 
        from each fund must be used only to pay 
        an increase from that fund in the same 
        percentage that each employee's 
        compensation is paid from that fund. 
        The commissioner of finance shall 
        report to the chair of the ways and 
        means committee of the house of 
        representatives and the chair of the 
        finance committee of the senate by 
        December 31, 1995, on the transfers 
        made under these provisions. 
        Sec. 34.  ATTORNEY GENERAL; MILLE LACS
        TREATY LITIGATION 
        $790,000 in fiscal year 1995 is added 
        to the appropriation in Laws 1993, 
        chapter 192, section 11, subdivision 3, 
        for the unanticipated expenses of the 
        Mille Lacs and Fond du Lac treaty 
        litigation efforts. 
           Sec. 35.  [3.225] [PROFESSIONAL AND TECHNICAL SERVICE 
        CONTRACTS.] 
           Subdivision 1.  [APPLICATION.] This section applies to a 
        contract for professional or technical services entered into by 
        the house of representatives, the senate, the legislative 
        coordinating commission, or any group under the jurisdiction of 
        the legislative coordinating commission.  For purposes of this 
        section, "professional or technical services" contract has the 
        meaning defined in section 16B.17. 
           Subd. 2.  [REQUIREMENTS FOR ALL CONTRACTS.] Before entering 
        into a contract for professional or technical services, the 
        contracting entity must determine that: 
           (1) all provisions of section 16B.19, subdivision 2, have 
        been verified or complied with; 
           (2) the work to be performed under the contract is 
        necessary to the entity's achievement of its responsibilities; 
           (3) the contract will not establish an employment 
        relationship between the state or the entity and any persons 
        performing under the contract; 
           (4) no current legislative employees will engage in the 
        performance of the contract; 
           (5) no state agency has previously performed or contracted 
        for the performance of tasks which would be substantially 
        duplicated under the proposed contract; 
           (6) the contracting entity has specified a satisfactory 
        method of evaluating and using the results of the work to be 
        performed; and 
           (7) the combined contract and amendments will not extend 
        for more than five years. 
           Subd. 3.  [CONTRACTS OVER $5,000.] Before an entity may 
        seek to enter into a professional or technical services contract 
        valued in excess of $5,000, it must determine that: 
           (1) no current legislative employee is able and available 
        to perform the services called for by the contract; 
           (2) reasonable efforts were made to publicize the 
        availability of the contract to the public; 
           (3) the entity has received, reviewed, and accepted a 
        detailed work plan from the contractor for performance under the 
        contract; and 
           (4) the entity has developed, and fully intends to 
        implement, a written plan providing for:  the assignment of 
        personnel to a monitoring and liaison function; the periodic 
        review of interim reports or other indications of past 
        performance; and the ultimate utilization of the final product 
        of the services. 
           Subd. 4.  [RENEWALS.] The renewal of a professional or 
        technical service contract must comply with all requirements, 
        including notice, applicable to the original contract.  A 
        renewal contract must be identified as such.  All notices and 
        reports on a renewal contract must state the date of the 
        original contract and the amount previously paid under the 
        contract. 
           Subd. 5.  [REPORTS.] (a) The house of representatives, the 
        senate, and the legislative coordinating commission shall submit 
        to the legislative reference library a monthly listing of all 
        contracts for professional or technical services executed in the 
        preceding month.  The report must identify the parties and the 
        contract amount, duration, and tasks to be performed. 
           (b) The monthly report must: 
           (1) be sorted by contracting entity and by contractor; 
           (2) show the aggregate value of contracts issued by each 
        agency and issued to each contractor; 
           (3) distinguish between contracts that are being issued for 
        the first time and contracts that are being renewed; 
           (4) state the termination date of each contract; and 
           (5) categorize contracts according to subject matter, 
        including topics such as contracts for training, contracts for 
        research and opinions, and contracts for computer systems. 
           (c) Within 30 days of final completion of a contract over 
        $40,000 covered by this subdivision, the chief executive of the 
        entity entering into the contract must file a one-page 
        performance report with the legislative reference library.  The 
        report must: 
           (1) summarize the purpose of the contract, including why it 
        was necessary to enter into a contract; 
           (2) state the amount spent on the contract; and 
           (3) explain why this amount was a cost-effective way to 
        enable the entity to provide its services or products better or 
        more efficiently. 
           Subd. 6.  [CONTRACT TERMS.] (a) A professional or technical 
        services contract must by its terms permit the contracting 
        entity to unilaterally terminate the contract prior to 
        completion, upon payment of just compensation, if the entity 
        determines that further performance under the contract would not 
        serve entity purposes.  If the final product of the contract is 
        a written report, a copy must be filed with the legislative 
        reference library. 
           (b) The terms of a contract must provide that no more than 
        90 percent of the amount due under the contract may be paid 
        until the final product has been reviewed by the person entering 
        into the contract on behalf of the contracting entity, and that 
        person has certified that the contractor has satisfactorily 
        fulfilled the terms of the contract. 
           Sec. 36.  Minnesota Statutes 1994, section 3.85, 
        subdivision 12, is amended to read: 
           Subd. 12.  [ALLOCATION OF ACTUARIAL COST.] (a) The 
        commission shall assess each retirement plan specified in 
        subdivision 11, paragraph (b), for a portion of the compensation 
        paid to the actuary retained by the commission for the actuarial 
        valuation calculations and quadrennial experience studies.  The 
        assessment is 72 100 percent of the amount of contract 
        compensation for the actuarial consulting firm retained by the 
        commission for actuarial valuation calculations, including the 
        public employees police and fire plan consolidation accounts of 
        the public employees retirement association, annual experience 
        data collection and processing, and quadrennial experience 
        studies.  
           The portion of the total assessment payable by each 
        retirement system or pension plan must be determined as follows: 
           (1) Each pension plan specified in subdivision 11, 
        paragraph (b), clauses (1) to (14), must pay the following 
        indexed amount based on its total active, deferred, inactive, 
        and benefit recipient membership: 
               up to 2,000 members, inclusive         $2.55 per member 
               2,001 through 10,000 members           $1.13 per member 
               over 10,000 members                    $0.11 per member  
           The amount specified is applicable for the assessment of 
        the July 1, 1991, to June 30, 1992, fiscal year actuarial 
        compensation amounts.  For the July 1, 1992, to June 30, 1993, 
        fiscal year and subsequent fiscal year actuarial compensation 
        amounts, the amount specified must be increased at the same 
        percentage increase rate as the implicit price deflator for 
        state and local government purchases of goods and services for 
        the 12-month period ending with the first quarter of the 
        calendar year following the completion date for the actuarial 
        valuation calculations, as published by the federal Department 
        of Commerce, and rounded upward to the nearest full cent. 
           (2) The total per-member portion of the allocation must be 
        determined, and that total per-member amount must be subtracted 
        from the total amount for allocation.  Of the remainder dollar 
        amount, the following per-retirement system and per-pension plan 
        charges must be determined and the charges must be paid by the 
        system or plan: 
           (i) 37.87 percent is the total additional per-retirement 
        system charge, of which one-seventh must be paid by each 
        retirement system specified in subdivision 11, paragraph (b), 
        clauses (1), (2), (6), (7), (9), (10), and (11). 
           (ii) 62.13 percent is the total additional per-pension plan 
        charge, of which one-thirteenth must be paid by each pension 
        plan specified in subdivision 11, paragraph (b), clauses (1) to 
        (13), if there are not any participants in the plan specified in 
        subdivision 11, paragraph (b), clause (14), or of which 
        one-fourteenth must be paid by each pension plan specified in 
        subdivision 11, paragraph (b), clauses (1) to (14), if there are 
        participants in the plan specified in subdivision 11, paragraph 
        (b), clause (14). 
           (b) The assessment must be made following the completion of 
        the actuarial valuation calculations and the experience 
        analysis.  The amount of the assessment is appropriated from the 
        retirement fund applicable to the retirement plan.  Receipts 
        from assessments must be deposited in the state treasury and 
        credited to the general fund. 
           Sec. 37.  Minnesota Statutes 1994, section 3.9741, 
        subdivision 2, as amended by Laws 1995, chapter 212, article 4, 
        section 1, is amended to read: 
           Subd. 2.  [POST-SECONDARY EDUCATION BOARD.] The legislative 
        auditor may enter into an interagency agreement with the board 
        of trustees of the Minnesota state colleges and universities to 
        conduct financial audits, in addition to audits conducted under 
        section 3.972, subdivision 2.  All payments received for audits 
        requested by the board shall be paid added to the appropriation 
        for the legislative auditor's account and need not be deposited 
        in the general fund auditor. 
           Sec. 38.  Minnesota Statutes 1994, section 3C.02, is 
        amended by adding a subdivision to read: 
           Subd. 6.  A contract for professional or technical services 
        that is valued at more than $50,000 may be made only after the 
        revisor has consulted with the legislative coordinating 
        commission.  The contract is subject to its recommendation as 
        provided by section 3C.10, subdivision 3, for a printing 
        contract. 
           Sec. 39.  Minnesota Statutes 1994, section 7.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROCEDURE.] The state treasurer is 
        authorized to receive and accept, on behalf of the state, any 
        gift, bequest, devise, or endowment which may be made by any 
        person, by will, deed, gift, or otherwise, to or for the benefit 
        of the state, or any of its departments or agencies, or to or in 
        aid, or for the benefit, support, or maintenance of any 
        educational, charitable, or other institution maintained in 
        whole or in part by the state, or for the benefit of students, 
        employees, or inmates thereof, or for any proper state purpose 
        or function, and the money, property, or funds constituting such 
        gift, bequest, devise, or endowment.  No such gift, bequest, 
        devise, or endowment whose value is equal to or exceeds $10,000 
        shall be so accepted unless the commissioner of finance and the 
        state treasurer shall determine that it is for the interest of 
        the state to accept it, and shall approve of and direct the 
        acceptance.  If the value is less than $10,000, only the state 
        treasurer need determine that it is for the interest of the 
        state to accept it, and approve of and direct the acceptance.  
        When, in order to effect the purpose for which any gift, 
        bequest, devise, or endowment has been accepted, it is necessary 
        to sell property so received, the state treasurer, upon request 
        of the authority in charge of the agency, department, or 
        institution concerned, may sell it at a price which shall be 
        fixed by the state board of investment. 
           Sec. 40.  Minnesota Statutes 1994, section 15.061, is 
        amended to read: 
           15.061 [CONSULTANT, PROFESSIONAL AND OR TECHNICAL 
        SERVICES.] 
           Pursuant to the provisions of In accordance with section 
        16B.17, the head of a state department or agency may, with the 
        approval of the commissioner of administration, contract 
        for consultant services and professional and or technical 
        services in connection with the operation of the department or 
        agency.  A contract negotiated under this section shall is not 
        be subject to the competitive bidding requirements of chapter 16 
        16B. 
           Sec. 41.  Minnesota Statutes 1994, section 15.415, is 
        amended to read: 
           15.415 [CORRECTIONS IN TRANSACTIONS, WAIVER.] 
           In any instance where a correction concerning any state 
        department or agency transaction involves an amount less than 
        the administrative cost of making the correction, the correction 
        shall be waived unless it is possible at a relatively nominal 
        expense to include the correction in a later transaction.  If 
        the amount of any correction is less than $2 $5 it shall be 
        prima facie evidence that the cost of the correction would 
        exceed the amount involved.  
           Sec. 42.  Minnesota Statutes 1994, section 15.50, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CAPITOL AREA PLAN.] (a) The board shall prepare, 
        prescribe, and from time to time, after a public hearing, amend 
        a comprehensive use plan for the capitol area, called the area 
        in this subdivision, which consists of that portion of the city 
        of Saint Paul comprehended within the following boundaries:  
        Beginning at the point of intersection of the center line of the 
        Arch-Pennsylvania freeway and the center line of Marion Street, 
        thence southerly along the center line of Marion Street extended 
        to a point 50 feet south of the south line of Concordia Avenue, 
        thence southeasterly along a line extending 50 feet from the 
        south line of Concordia Avenue to a point 125 feet from the west 
        line of John Ireland Boulevard, thence southwesterly along a 
        line extending 125 feet from the west line of John Ireland 
        Boulevard to the south line of Dayton Avenue, thence 
        northeasterly from the south line of Dayton Avenue to the west 
        line of John Ireland Boulevard, thence northeasterly to the 
        center line of the intersection of Old Kellogg Boulevard and 
        Summit Avenue, thence northeasterly along the center line of 
        Summit Avenue to the center line of the new West Kellogg 
        Boulevard, thence southerly along the east line of the new West 
        Kellogg Boulevard, to the center line of West Seventh Street, 
        thence northeasterly along the center line of West Seventh 
        Street to the center line of the Fifth Street ramp, thence 
        northwesterly along the center line of the Fifth Street ramp to 
        the east line of the right-of-way of Interstate Highway 35-E, 
        thence northeasterly along the east line of the right-of-way of 
        Interstate Highway 35-E to the south line of the right-of-way of 
        Interstate Highway 94, thence easterly along the south line of 
        the right-of-way of Interstate Highway 94 to the west line of 
        St. Peter Street, thence southerly to the south line of Eleventh 
        Exchange Street, thence easterly along the south line 
        of Eleventh Exchange Street to the west line of Cedar Street, 
        thence southeasterly northerly along the west line of Cedar 
        Street to the center line of Tenth Street, thence northeasterly 
        along the center line of Tenth Street to the center line of 
        Minnesota Street, thence northwesterly along the center line of 
        Minnesota Street to the center line of Eleventh Street, thence 
        northeasterly along the center line of Eleventh Street to the 
        center line of Jackson Street, thence northwesterly along the 
        center line of Jackson Street to the center line of the 
        Arch-Pennsylvania freeway extended, thence westerly along the 
        center line of the Arch-Pennsylvania freeway extended and Marion 
        Street to the point of origin.  If construction of the labor 
        interpretive center does not commence prior to December 31, 1998 
        2000, at the site recommended by the board, the boundaries of 
        the capitol area revert to their configuration as of 1992.  
           Under the comprehensive plan, or a portion of it, the board 
        may regulate, by means of zoning rules adopted under the 
        administrative procedure act, the kind, character, height, and 
        location, of buildings and other structures constructed or used, 
        the size of yards and open spaces, the percentage of lots that 
        may be occupied, and the uses of land, buildings and other 
        structures, within the area.  To protect and enhance the 
        dignity, beauty, and architectural integrity of the capitol 
        area, the board is further empowered to include in its zoning 
        rules design review procedures and standards with respect to any 
        proposed construction activities in the capitol area 
        significantly affecting the dignity, beauty, and architectural 
        integrity of the area.  No person may undertake these 
        construction activities as defined in the board's rules in the 
        capitol area without first submitting construction plans to the 
        board, obtaining a zoning permit from the board, and receiving a 
        written certification from the board specifying that the person 
        has complied with all design review procedures and standards.  
        Violation of the zoning rules is a misdemeanor.  The board may, 
        at its option, proceed to abate any violation by injunction.  
        The board and the city of Saint Paul shall cooperate in assuring 
        that the area adjacent to the capitol area is developed in a 
        manner that is in keeping with the purpose of the board and the 
        provisions of the comprehensive plan.  
           (b) The commissioner of administration shall act as a 
        consultant to the board with regard to the physical structural 
        needs of the state.  The commissioner shall make studies and 
        report the results to the board when it requests reports for its 
        planning purpose.  
           (c) No public building, street, parking lot, or monument, 
        or other construction may be built or altered on any public 
        lands within the area unless the plans for the project conform 
        to the comprehensive use plan as specified in paragraph (d) and 
        to the requirement for competitive plans as specified in 
        paragraph (e).  No alteration substantially changing the 
        external appearance of any existing public building approved in 
        the comprehensive plan or the exterior or interior design of any 
        proposed new public building the plans for which were secured by 
        competition under paragraph (e) may be made without the prior 
        consent of the board.  The commissioner of administration shall 
        consult with the board regarding internal changes having the 
        effect of substantially altering the architecture of the 
        interior of any proposed building.  
           (d) The comprehensive plan must show the existing land uses 
        and recommend future uses including:  areas for public taking 
        and use; zoning for private land and criteria for development of 
        public land, including building areas, open spaces, monuments, 
        and other memorials; vehicular and pedestrian circulation; 
        utilities systems; vehicular storage; elements of landscape 
        architecture.  No substantial alteration or improvement may be 
        made to public lands or buildings in the area without the 
        written approval of the board.  
           (e) The board shall secure by competitions plans for any 
        new public building.  Plans for any comprehensive plan, 
        landscaping scheme, street plan, or property acquisition that 
        may be proposed, or for any proposed alteration of any existing 
        public building, landscaping scheme or street plan may be 
        secured by a similar competition.  A competition must be 
        conducted under rules prescribed by the board and may be of any 
        type which meets the competition standards of the American 
        Institute of Architects.  Designs selected become the property 
        of the state of Minnesota, and the board may award one or more 
        premiums in each competition and may pay the costs and fees that 
        may be required for its conduct.  At the option of the board, 
        plans for projects estimated to cost less than $1,000,000 may be 
        approved without competition provided the plans have been 
        considered by the advisory committee described in paragraph 
        (h).  Plans for projects estimated to cost less than $400,000 
        and for construction of streets need not be considered by the 
        advisory committee if in conformity with the comprehensive plan. 
           (f) Notwithstanding paragraph (e), an architectural 
        competition is not required for the design of any light rail 
        transit station and alignment within the capitol area.  The 
        board and its advisory committee shall select a preliminary 
        design for any transit station in the capitol area.  Each stage 
        of any station's design through working drawings must be 
        reviewed by the board's advisory committee and approved by the 
        board to ensure that the station's design is compatible with the 
        comprehensive plan for the capitol area and the board's design 
        criteria.  The guideway and track design of any light rail 
        transit alignment within the capitol area must also be reviewed 
        by the board's advisory committee and approved by the board. 
           (g) Of the amount available for the light rail transit 
        design, adequate funds must be available to the board for design 
        framework studies and review of preliminary plans for light rail 
        transit alignment and stations in the capitol area. 
           (h) The board may not adopt any plan under paragraph (e) 
        unless it first receives the comments and criticism of an 
        advisory committee of three persons, each of whom is either an 
        architect or a planner, who have been selected and appointed as 
        follows:  one by the board of the arts, one by the board, and 
        one by the Minnesota Society of the American Institute of 
        Architects.  Members of the committee may not be contestants 
        under paragraph (e).  The comments and criticism must be a 
        matter of public information.  The committee shall advise the 
        board on all architectural and planning matters.  For that 
        purpose, the committee must be kept currently informed 
        concerning, and have access to, all data, including all plans, 
        studies, reports and proposals, relating to the area as the data 
        are developed or in the process of preparation, whether by the 
        commissioner of administration, the commissioner of trade and 
        economic development, the metropolitan council, the city of 
        Saint Paul, or by any architect, planner, agency or 
        organization, public or private, retained by the board or not 
        retained and engaged in any work or planning relating to the 
        area, and a copy of any data prepared by any public employee or 
        agency must be filed with the board promptly upon completion.  
           The board may employ stenographic or technical help that 
        may be reasonable to assist the committee to perform its duties. 
           When so directed by the board, the committee may serve as, 
        and any member or members of the committee may serve on, the 
        jury or as professional advisor for any architectural 
        competition, and the board shall select the architectural 
        advisor and jurors for any competition with the advice of the 
        committee.  
           The city of Saint Paul shall advise the board.  
           (i) The comprehensive plan for the area must be developed 
        and maintained in close cooperation with the commissioner of 
        trade and economic development, the planning department and the 
        council for the city of Saint Paul, and the board of the arts, 
        and no plan or amendment of a plan may be effective without 90 
        days' notice to the planning department of the city of Saint 
        Paul and the board of the arts and without a public hearing with 
        opportunity for public testimony.  
           (j) The board and the commissioner of administration, 
        jointly, shall prepare, prescribe, and from time to time revise 
        standards and policies governing the repair, alteration, 
        furnishing, appearance, and cleanliness of the public and 
        ceremonial areas of the state capitol building.  The board shall 
        consult with and receive advice from the director of the 
        Minnesota state historical society regarding the historic 
        fidelity of plans for the capitol building.  The standards and 
        policies developed under this paragraph are binding upon the 
        commissioner of administration.  The provisions of sections 
        14.02, 14.04 to 14.36, 14.38, and 14.44 to 14.45 do not apply to 
        this paragraph.  
           (k) The board in consultation with the commissioner of 
        administration shall prepare and submit to the legislature and 
        the governor no later than October 1 of each even-numbered year 
        a report on the status of implementation of the comprehensive 
        plan together with a program for capital improvements and site 
        development, and the commissioner of administration shall 
        provide the necessary cost estimates for the program.  The board 
        shall report any changes to the comprehensive plan adopted by 
        the board to the committee on governmental operations and 
        gambling of the house of representatives and the committee on 
        governmental operations and reform of the senate and upon 
        request shall provide testimony concerning the changes.  The 
        board shall also provide testimony to the legislature on 
        proposals for memorials in the capitol area as to their 
        compatibility with the standards, policies, and objectives of 
        the comprehensive plan. 
           (l) The state shall, by the attorney general upon the 
        recommendation of the board and within appropriations available 
        for that purpose, acquire by gift, purchase, or eminent domain 
        proceedings any real property situated in the area described in 
        this section, and it may also acquire an interest less than a 
        fee simple interest in the property, if it finds that the 
        property is needed for future expansion or beautification of the 
        area.  
           (m) The board is the successor of the state veterans 
        service building commission, and as such may adopt rules and may 
        reenact the rules adopted by its predecessor under Laws 1945, 
        chapter 315, and amendments to it.  
           (n) The board shall meet at the call of the chair and at 
        such other times as it may prescribe.  
           (o) The commissioner of administration shall assign 
        quarters in the state veterans service building to (1) the 
        department of veterans affairs, of which a part that the 
        commissioner of administration and commissioner of veterans 
        affairs may mutually determine must be on the first floor above 
        the ground, and (2) the American Legion, Veterans of Foreign 
        Wars, Disabled American Veterans, Military Order of the Purple 
        Heart, United Spanish War Veterans, and Veterans of World War I, 
        and their auxiliaries, incorporated, or when incorporated, under 
        the laws of the state, and (3) as space becomes available, to 
        other state departments and agencies as the commissioner may 
        deem desirable. 
           Sec. 43.  Minnesota Statutes 1994, section 15.91, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERFORMANCE REPORTS.] (a) Each agency shall 
        develop a performance report for the major programs that it 
        provides or administers.  The report shall include each of the 
        following items or an explanation of why an item does not apply 
        to the agency or its individual programs: 
           (1) a statement of the mission, goals, and objectives of 
        the agency including those set forth in statute; 
           (2) measures of the output and outcome of the program; 
           (3) identification of priority and other populations served 
        by the programs under current law and how those populations are 
        expected to change within the period of the report; 
           (4) plans for how outcome information can be used as an 
        incentive for improving state programs and program outcomes; 
           (5) requests for statutory flexibility needed to reach 
        outcome goals; 
           (6) proposals and cost estimates for collecting new outcome 
        information; and 
           (7) other information that may be required to explain the 
        past and projected performance of state programs. 
           The objectives required under clause (1):  (i) must be 
        simple declarative statements of intent; (ii) should carry 
        benchmarks for accomplishment; and (iii) should be specific 
        enough so citizens can measure progress year to year. 
           (b) Each agency shall issue a first annual report by 
        September 1, 1994, and annual updated reports no later than 
        September 1 of each year beginning in 1995.  A report must cover 
        a period of four years previous and two years in the future from 
        the date that it is required to be issued, including previous 
        forecasts versus actual measures. 
           (c) Each agency shall send a copy of each report issued to 
        the governor, the speaker of the house of representatives, the 
        president of the senate, the legislative commission on planning 
        and fiscal policy, the legislative auditor, the commissioner of 
        finance, and two copies to the legislative reference library. 
           (d) The legislative auditor shall review the drafts and 
        give comments to agencies and the legislature before September 
        1, 1994, and shall review and give comments on annual reports on 
        a rotating biennial schedule. 
           (e) State agency reports shall be compiled as required in 
        this paragraph.  The commissioner of finance, in consultation 
        with the commissioner of administration, the legislative 
        commission on planning and fiscal policy, and the finance 
        committees and divisions of the house of representatives and 
        senate, shall: 
           (1) develop forms and instructions and coordinate training 
        for the use of the agencies in the preparation of their reports; 
           (2) work with individual agencies to determine acceptable 
        measures of staff workload, unit costs, output, and outcome for 
        use in reports; and 
           (3) request any needed additional information concerning 
        any agency report submitted. 
           Each agency shall include citizens, agency clients, 
        consumer and advocacy groups, worker participation committees, 
        managers, elected officials, and contractors in its 
        planning.  By November 1 of each even-numbered year, each agency 
        shall issue a performance report that includes the following: 
           (1) the agency's mission; 
           (2) goals and objectives for each major program for which 
        the agency will request funding in its next biennial budget; 
           (3) identification of the populations served by the 
        programs; and 
           (4) workload, efficiency, output, and outcome measures for 
        each program listed in the report, with data showing each 
        programs' actual performance relative to these measures for the 
        previous four fiscal years and the performance the agency 
        projects it will achieve during the next two fiscal years with 
        the level of funding it has requested. 
           If it would enhance an understanding of its mission, 
        programs, and performance, the agency shall include in its 
        report information that describes the broader economic, social, 
        and physical environment in which the agency's programs are 
        administered. 
           Each agency shall send a copy of its performance report to 
        the speaker of the house, president of the senate, legislative 
        auditor, and legislative reference library, and provide a copy 
        to others upon request. 
           The commissioner of finance shall ensure that performance 
        reports are complete, accurate, and reliable and compiled in 
        such a way that they are useful to the public, legislators, and 
        managers in state government.  To maintain a computerized 
        performance data system, the commissioner of finance may require 
        agencies to provide performance data annually. 
           The legislative auditor shall review and comment on 
        performance reports as provided for by section 3.971, 
        subdivision 3. 
           Sec. 44.  [16A.101] [SERVICE CONTRACTS.] 
           The state accounting system must list expenditures for 
        professional and technical service contracts, as defined in 
        section 16B.17, as a separate category.  No other expenditures 
        may be included in this category. 
           Sec. 45.  Minnesota Statutes 1994, section 16A.11, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [CONTRACTS.] The detailed budget estimate must 
        also include the following information on professional or 
        technical services contracts: 
           (1) the number and amount of contracts over $40,000 for 
        each agency for the past biennium; 
           (2) the anticipated number and amount of contracts over 
        $40,000 for each agency for the upcoming biennium; and 
           (3) the total value of all contracts from the previous 
        biennium, and the anticipated total value of all contracts for 
        the upcoming biennium. 
           Sec. 46.  Minnesota Statutes 1994, section 16A.127, 
        subdivision 8, is amended to read: 
           Subd. 8.  [EXEMPTIONS.] (a) No statewide or agency indirect 
        cost liability shall be accrued to any program, appropriation, 
        or account that is specifically exempted from the liability in 
        federal or state law, or if the commissioner determines the 
        funds to be held in trust, or to be a pass-through, workshop, or 
        seminar account.  Accounts receiving proceeds from bond issues, 
        and those accounts whose funds are determined by the 
        commissioner to originate from the general fund, accounts are 
        also exempt from this section. 
           (b) Except for the costs of the legislative auditor to 
        conduct financial audits of federal funds, this section does not 
        apply to the community college board, state university board, or 
        the state board of technical colleges.  Receipts attributable to 
        financial audits conducted by the legislative auditor of federal 
        funds administered by these post-secondary education boards 
        shall be deposited in the general fund. 
           Sec. 47.  Minnesota Statutes 1994, section 16A.129, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CASH ADVANCES.] When the operations of any 
        nongeneral fund account would be impeded by projected cash 
        deficiencies resulting from delays in the receipt of grants, 
        dedicated income, or other similar receivables, and when the 
        deficiencies would be corrected within the budget period 
        involved, the commissioner of finance may transfer use general 
        fund cash reserves into the accounts as necessary to meet cash 
        demands.  If funds are transferred from the general fund to meet 
        cash flow needs, the cash flow transfers must be returned to the 
        general fund as soon as sufficient cash balances are available 
        in the account to which the transfer was made.  Any interest 
        earned on general fund cash flow transfers accrues to the 
        general fund and not to the accounts or funds to which the 
        transfer was made. 
           Sec. 48.  Minnesota Statutes 1994, section 16A.28, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PERMANENT IMPROVEMENTS.] An appropriation for 
        permanent improvements, including the acquisition of real 
        property does not lapse until the purposes of the appropriation 
        are determined by the commissioner, after consultation with the 
        affected agencies, to be accomplished or abandoned.  This 
        subdivision also applies to any part of an appropriation for a 
        fiscal year that has been requisitioned to acquire real property 
        or construct permanent improvements.  
           Sec. 49.  Minnesota Statutes 1994, section 16A.28, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CANCELED SEPTEMBER 1 OCTOBER 15.] On September 1 
        October 15 all allotments and encumbrances for the last fiscal 
        year shall be canceled unless an agency head certifies to the 
        commissioner that there is an encumbrance for services rendered 
        or goods ordered in the last fiscal year, or certifies that 
        funding will be carried forward under subdivision 1.  The 
        commissioner may:  reinstate the part of the cancellation needed 
        to meet the certified encumbrance or charge the certified 
        encumbrance against the current year's appropriation. 
           Sec. 50.  Minnesota Statutes 1994, section 16A.40, is 
        amended to read: 
           16A.40 [WARRANTS.] 
           Money must not be paid out of the state treasury except 
        upon the warrant of the commissioner or an electronic fund 
        transfer approved by the commissioner.  Warrants must be drawn 
        on printed blanks that are in numerical order.  The commissioner 
        shall enter, in numerical order in a warrant register, the 
        number, amount, date, and payee for every warrant issued. 
           Sec. 51.  Minnesota Statutes 1994, section 16A.57, is 
        amended to read: 
           16A.57 [APPROPRIATION, ALLOTMENT, AND WARRANT NEEDED.] 
           Unless otherwise expressly provided by law, state money may 
        not be spent or applied without an appropriation, an allotment, 
        and issuance of a warrant or electronic fund transfer. 
           Sec. 52.  Minnesota Statutes 1994, section 16B.06, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [COMPLIANCE.] The commissioner must develop 
        procedures to audit agency personnel to whom the commissioner 
        has delegated contracting authority, in order to ensure 
        compliance with laws and guidelines governing issuance of 
        contracts, including laws and guidelines governing conflicts of 
        interest. 
           Sec. 53.  [16B.167] [EMPLOYEE SKILLS INVENTORY.] 
           The commissioners of employee relations and administration 
        shall develop a list of skills that state agencies commonly seek 
        from professional or technical service contracts, in 
        consultation with exclusive representatives of state employees. 
           Before an agency may seek approval of a professional or 
        technical services contract valued in excess of $25,000, it must 
        certify to the commissioner that it has publicized the contract 
        by posting notice at appropriate worksites within agencies and 
        has made reasonable efforts to determine that no state employee, 
        including an employee outside the contracting agency, is able 
        and available to perform the services called for by the contract.
        When possible this posting must be done electronically. 
           Sec. 54.  Minnesota Statutes 1994, section 16B.17, is 
        amended to read: 
           16B.17 [CONSULTANTS AND PROFESSIONAL OR TECHNICAL 
        SERVICES.] 
           Subdivision 1.  [TERMS.] For the purposes of this section, 
        the following terms have the meanings given them: 
           (a) [CONSULTANT SERVICES.] "Consultant professional or 
        technical services" means services which that are intellectual 
        in character; which that do not involve the provision of 
        supplies or materials; which that include consultation analysis, 
        evaluation, prediction, planning, or recommendation; and which 
        that result in the production of a report or the completion of a 
        task.  
           (b) [PROFESSIONAL AND TECHNICAL SERVICES.] "Professional 
        and technical services" means services which are predominantly 
        intellectual in character; which do not involve the provision of 
        supplies or materials; and in which the final result is the 
        completion of a task rather than analysis, evaluation, 
        prediction, planning, or recommendation.  
           Subd. 2.  [PROCEDURE FOR CONSULTANT AND PROFESSIONAL AND OR 
        TECHNICAL SERVICES CONTRACTS.] Before approving a proposed state 
        contract for consultant services or professional and or 
        technical services, the commissioner must determine, at least, 
        that:  
           (1) all provisions of section 16B.19 and subdivision 3 of 
        this section have been verified or complied with; 
           (2) the work to be performed under the contract is 
        necessary to the agency's achievement of its statutory 
        responsibilities, and there is statutory authority to enter into 
        the contract; 
           (3) the contract will not establish an employment 
        relationship between the state or the agency and any persons 
        performing under the contract; 
           (4) no current state employees will engage in the 
        performance of the contract; 
           (5) no state agency has previously performed or contracted 
        for the performance of tasks which would be substantially 
        duplicated under the proposed contract; and 
           (6) the contracting agency has specified a satisfactory 
        method of evaluating and using the results of the work to be 
        performed; and 
           (7) the combined contract and amendments will not extend 
        for more than five years.  
           Subd. 3.  [DUTIES OF CONTRACTING AGENCY.] Before an agency 
        may seek approval of a consultant or professional and or 
        technical services contract valued in excess of $5,000, it must 
        certify to the commissioner that:  
           (1) no current state employee is able and available to 
        perform the services called for by the contract; 
           (2) the normal competitive bidding mechanisms will not 
        provide for adequate performance of the services; 
           (3) the services are not available as a product of a prior 
        consultant or professional and technical services contract, and 
        the contractor has certified that the product of the services 
        will be original in character; 
           (4) reasonable efforts were made to publicize the 
        availability of the contract to the public; 
           (5) the agency has received, reviewed, and accepted a 
        detailed work plan from the contractor for performance under the 
        contract; and 
           (6) the agency has developed, and fully intends to 
        implement, a written plan providing for the assignment of 
        specific agency personnel to a monitoring and liaison function;, 
        the periodic review of interim reports or other indications of 
        past performance, and the ultimate utilization of the final 
        product of the services; and 
           (7) the agency will not allow the contractor to begin work 
        before funds are fully encumbered. 
           Subd. 3a.  [RENEWALS.] The renewal of a professional or 
        technical contract must comply with all requirements, including 
        notice, applicable to the original contract.  A renewal contract 
        must be identified as such.  All notices and reports on a 
        renewal contract must state the date of the original contract 
        and the amount paid previously under the contract.  
           Subd. 4.  [REPORTS.] (a) The commissioner shall submit to 
        the governor, the chairs of the house ways and means and senate 
        finance committees, and the legislature legislative reference 
        library a monthly listing of all contracts for consultant 
        services and for professional and or technical services executed 
        or disapproved in the preceding month.  The report must identify 
        the parties and the contract amount, duration, and tasks to be 
        performed.  The commissioner shall also issue quarterly reports 
        summarizing the contract review activities of the department 
        during the preceding quarter. 
           (b) The monthly and quarterly reports must: 
           (1) be sorted by agency and by contractor; 
           (2) show the aggregate value of contracts issued by each 
        agency and issued to each contractor; 
           (3) distinguish between contracts that are being issued for 
        the first time and contracts that are being renewed; 
           (4) state the termination date of each contract; and 
           (5) categorize contracts according to subject matter, 
        including topics such as contracts for training, contracts for 
        research and opinions, and contracts for computer systems. 
           (c) Within 30 days of final completion of a contract over 
        $40,000 covered by this subdivision, the chief executive of the 
        agency entering into the contract must submit a one-page report 
        to the commissioner who must submit a copy to the legislative 
        reference library.  The report must: 
           (1) summarize the purpose of the contract, including why it 
        was necessary to enter into a contract; 
           (2) state the amount spent on the contract; and 
           (3) explain why this amount was a cost-effective way to 
        enable the agency to provide its services or products better or 
        more efficiently.  
           Subd. 5.  [CONTRACT TERMS.] (a) A consultant or technical 
        and professional or technical services contract must by its 
        terms permit the agency to unilaterally terminate the contract 
        prior to completion, upon payment of just compensation, if the 
        agency determines that further performance under the contract 
        would not serve agency purposes.  If the final product of the 
        contract is to be a written report, no more than three copies of 
        the report, one in camera ready form, shall be submitted to the 
        agency.  One of the copies a copy must be filed with the 
        legislative reference library.  
           (b) The terms of a contract must provide that no more than 
        90 percent of the amount due under the contract may be paid 
        until the final product has been reviewed by the chief executive 
        of the agency entering into the contract, and the chief 
        executive has certified that the contractor has satisfactorily 
        fulfilled the terms of the contract. 
           Subd. 6.  [EXCLUSIONS.] This section and section 16B.167 do 
        not apply: 
           (1) to Minnesota state college or university contracts to 
        provide instructional services to public or private 
        organizations, agencies, businesses, or industries; 
           (2) to contracts with individuals or organizations for 
        administration of employee pension plans authorized under 
        chapter 354B or 354C; or 
           (3) to instructional services provided to Minnesota state 
        colleges or universities by organizations or individuals 
        provided the contracts are consistent with terms of applicable 
        labor agreements. 
           Sec. 55.  [16B.175] [PROFESSIONAL OR TECHNICAL SERVICE 
        CONTRACT CONFLICT OF INTEREST GUIDELINES.] 
           Subdivision 1.  [DEVELOPMENT; APPLICABILITY.] The 
        commissioner of administration must develop guidelines designed 
        to prevent conflicts of interest for agency employees involved 
        in professional or technical service contracts.  The guidelines 
        must apply to agency employees who are directly or indirectly 
        involved in:  developing requests for proposals; evaluating 
        proposals; drafting and entering into professional or technical 
        service contracts; evaluating performance under these contracts; 
        and authorizing payments under the contract. 
           Subd. 2.  [CONTENT.] (a) The guidelines must attempt to 
        ensure that an employee involved in contracting: 
           (1) does not have any financial interest in and does not 
        personally benefit from the contract; 
           (2) does not accept from a contractor or bidder any 
        promise, obligation, contract for future reward, or gift; and 
           (3) does not appear to have a conflict of interest because 
        of a family or close personal relationship to a contractor or 
        bidder, or because of a past employment or business relationship 
        with a contractor or bidder. 
           (b) The guidelines must contain a process for making 
        employees aware of guidelines and laws relating to conflict of 
        interest, and for training employees on how to avoid and deal 
        with potential conflicts. 
           (c) The guidelines must contain a process under which an 
        employee who has a conflict or a potential conflict may disclose 
        the matter, and a process under which work on the contract may 
        be assigned to another employee if possible. 
           Sec. 56.  Minnesota Statutes 1994, section 16B.19, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONSULTANT, PROFESSIONAL AND OR TECHNICAL 
        PROCUREMENTS.] Every state agency shall for each fiscal year 
        designate for awarding to small businesses at least 25 percent 
        of the value of anticipated procurements of that agency for 
        consultant services or professional and or technical services.  
        The set-aside under this subdivision is in addition to that 
        provided by subdivision 1, but shall must otherwise comply with 
        section 16B.17. 
           Sec. 57.  Minnesota Statutes 1994, section 16B.19, 
        subdivision 10, is amended to read: 
           Subd. 10.  [APPLICABILITY.] This section does not apply to 
        construction contracts or contracts for consultant, 
        professional, or technical services under section 16B.17 that 
        are financed in whole or in part with federal funds and that are 
        subject to federal disadvantaged business enterprise regulations.
           Sec. 58.  Minnesota Statutes 1994, section 16B.42, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OTHER DUTIES.] The intergovernmental 
        informations systems advisory council shall (1) recommend to the 
        commissioners of state departments, the legislative auditor, and 
        the state auditor a method for the expeditious gathering and 
        reporting of information and data between agencies and units of 
        local government in accordance with cooperatively developed 
        standards; (2) elect an executive committee, not to exceed seven 
        members from its membership; (3) develop an annual plan, to 
        include administration and evaluation of grants, in compliance 
        with applicable rules; (4) provide technical information systems 
        assistance or guidance to local governments for development, 
        implementation, and modification of automated systems, including 
        formation of consortiums for those systems; and (5) appoint 
        committees and task forces, which may include persons other than 
        council members, to assist the council in carrying out its 
        duties; (6) select an executive director to serve the council 
        and may employ other employees it deems necessary, all of whom 
        are in the classified service of the state civil service; (7) 
        may contract for professional and other similar services on 
        terms it deems desirable; and (8) work with the information 
        policy office to ensure that information systems developed by 
        state agencies that impact local government will be reviewed by 
        the council. 
           Sec. 59.  [16B.485] [INTERFUND LOANS.] 
           The commissioner may, with the approval of the commissioner 
        of finance, make loans from an internal service or enterprise 
        fund to another internal service or enterprise fund, and the 
        amount necessary is appropriated from the fund that makes the 
        loan.  The term of a loan made under this section must be not 
        more than 24 months.  
           Sec. 60.  Minnesota Statutes 1994, section 16B.88, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INFORMATION CENTER FOR VOLUNTEER 
        PROGRAMS.] (a) The office on of citizenship and volunteer 
        services is under the supervision and administration of an 
        executive a director appointed by the commissioner and referred 
        to in this section as "director.".  The office shall:  (1)  
        operate as a state information, technical assistance, and 
        promotion center for volunteer programs and needed services that 
        could be delivered by volunteer programs; and (2) promote and 
        facilitate citizen participation in local governance and public 
        problem solving. 
           (b) In furtherance of the mission in paragraph (a), clause 
        (2), the office shall: 
           (1) engage in education and other activities designed to 
        enhance the capacity of citizens to solve problems affecting 
        their communities; 
           (2) promote and support efforts by citizens, 
        community-based organizations, non-profits, churches, and local 
        governments to collaborate in solving community problems; 
           (3) encourage local governments to provide increased 
        opportunities for citizen involvement in public decision making 
        and public problem solving; 
           (4) refer innovative approaches to encourage greater public 
        access to and involvement in state and local government 
        decisions to appropriate state and local government officials; 
           (5) encourage units of state and local government to 
        respond to citizen initiatives and ideas; 
           (6) promote processes for involving citizens in government 
        decisions; and 
           (7) recognize and publicize models of effective public 
        problem solving by citizens. 
           A 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. 61.  Minnesota Statutes 1994, section 16B.88, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COOPERATION WITH OTHER GROUPS.] The director 
        shall cooperate with national, state, and local volunteer groups 
        in collecting information on federal, state, and private 
        resources which may encourage and improve volunteer projects 
        within the state.  The office shall coordinate its research and 
        other work on citizen engagement with the board of government 
        innovation and cooperation, the Minnesota extension service, and 
        Project Public Life, Humphrey Institute, University of Minnesota.
           Sec. 62.  Minnesota Statutes 1994, section 16B.88, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MONEY.] The director may accept and disburse 
        public or private funds and gifts made available for the 
        promotion of volunteer the office's programs. 
           Sec. 63.  Minnesota Statutes 1994, section 16B.88, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RESEARCH AND INFORMATION.] The director shall 
        conduct research to:  (1) identify methods for increasing the 
        capacity of citizens to influence decisions affecting their 
        lives, identify methods citizens can use to solve problems in 
        their communities, and promote innovative techniques for citizen 
        and community-based organizations to collaborate in 
        understanding and solving community problems; and (2) identify 
        needs of volunteer programs and to assess community needs for 
        volunteer services.  The director may issue informational 
        materials relating to volunteer programs in Minnesota and 
        results of the director's research. 
           Sec. 64.  [43A.211] [MINNESOTA QUALITY COLLEGE.] 
           Subdivision 1.  [PURPOSE; GOALS.] The Minnesota quality 
        college is a program in the department of employee relations to 
        provide information on continuous quality improvement training 
        resources to state officials and employees in executive 
        agencies.  It is managed by the board established by subdivision 
        2.  The purpose of the program is to help agencies, officials, 
        and employees achieve the mission and goals of their 
        governmental unit, improve government's responsiveness to 
        citizens, increase workplace innovation at the employee level, 
        increase productivity, improve public leadership and employee 
        involvement, and build pride in public service.  Its goals are 
        to encourage cost savings and cost sharing among its clients, to 
        help clients ensure that money for quality improvement training 
        is wisely spent, and to develop and maintain a curriculum that 
        provides a base for the continuous improvement of quality skills 
        in Minnesota's public workforce.  The curriculum must be based 
        on a philosophy of quality that has these components:  customer 
        focus, continuous improvement, and employee empowerment and 
        leadership.  The board shall insure that state agencies and 
        employees have access to and are provided with information on 
        quality resources, encourage sharing and interagency 
        cooperation, and provide high-quality and ongoing training on 
        how to apply the philosophy of quality in public service.  
           Subd. 2.  [MANAGEMENT.] The commissioner shall convene a 
        board to manage the college.  The board must consist of the 
        commissioner; a commissioner from another agency appointed by 
        the governor; a private citizen experienced in the application 
        of the quality philosophy, appointed by the governor; a 
        representative of the exclusive representatives of employees in 
        the executive branch, selected by the exclusive representatives; 
        and two representatives of management-level executive agency 
        employees, selected by the commissioner.  The board shall take 
        action based on a consensus of its members present.  The board 
        shall identify training needs and potential resources to provide 
        different levels of training depending on the requirements and 
        stage of development of each customer.  Levels of training may 
        include basic quality training, special management training, 
        refresher courses, coaching, organizational culture change, and 
        applying quality tools.  The board shall attempt to design a 
        model curriculum, specific components and resources to achieve 
        the curriculum, and specific programs within that curriculum to 
        meet the expressed needs of customers. 
           Subd. 3.  [CUSTOMERS.] The primary customers of the college 
        are Minnesota state agencies, officials, and employees.  The 
        board may extend services to local governmental units, federal 
        agencies, educational institutions, and nonprofit organizations 
        within Minnesota, but shall first ensure that the needs of their 
        primary customers are adequately met.  The curriculum must be 
        organized to meet the needs of five separate groups of 
        customers:  elected officials, appointed officials, managers, 
        quality professionals, and public employees. 
           Subd. 4.  [SUPPLIERS.] The board may draw upon a range of 
        training resources, including: 
           (1) staff of the customer agency itself; 
           (2) other agencies, including courses offered by the 
        department or the organizational analysis services of the 
        management analysis division of the department of 
        administration; 
           (3) Minnesota public and private higher education 
        institutions; 
           (4) private consultants; 
           (5) professional organizations; and 
           (6) local governmental units and federal agencies. 
           Sec. 65.  Minnesota Statutes 1994, section 43A.27, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELECTIVE ELIGIBILITY.] The following persons, if 
        not otherwise covered by section 43A.24, may elect coverage for 
        themselves or their dependents at their own expense: 
           (a) a state employee, including persons on layoff from a 
        civil service position as provided in collective bargaining 
        agreements or a plan established pursuant to section 43A.18; 
           (b) an employee of the board of regents of the University 
        of Minnesota, including persons on layoff, as provided in 
        collective bargaining agreements or by the board of regents; 
           (c) an officer or employee of the state agricultural 
        society, state horticultural society, Sibley house association, 
        Minnesota humanities commission, Minnesota area industry labor 
        management councils, Minnesota international center, Minnesota 
        academy of science, science museum of Minnesota, Minnesota 
        safety council, state office of disabled American veterans, 
        state office of the American Legion and its auxiliary, state 
        office of veterans of foreign wars and its auxiliary, or state 
        office of the Military Order of the Purple Heart; 
           (d) a civilian employee of the adjutant general who is paid 
        from federal funds and who is not eligible for benefits from any 
        federal civilian employee group life insurance or health 
        benefits program; and 
           (e) an officer or employee of the state capitol credit 
        union or the highway credit union. 
           Sec. 66.  Minnesota Statutes 1994, section 43A.27, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RETIRED EMPLOYEES.] A retired employee of the 
        state who receives an annuity under a state retirement 
        program or a retired employee of the state who is at least 50 
        years of age and has at least 15 years of state service may 
        elect to purchase at personal expense individual and dependent 
        hospital, medical, and dental coverages that are actuarially 
        equivalent to those made available through collective bargaining 
        agreements or plans established pursuant to section 43A.18 to 
        employees in positions equivalent to that from which retired.  A 
        spouse of a deceased retired employee who received an annuity 
        under a state retirement program may purchase the coverage 
        listed in this subdivision if the spouse was a dependent under 
        the retired employee's coverage at the time of the employee's 
        death.  Coverages must be coordinated with relevant health 
        insurance benefits provided through the federally sponsored 
        Medicare program.  Until the retired employee reaches age 65, 
        the retired employee and dependents must be pooled in the same 
        group as active employees for purposes of establishing premiums 
        and coverage for hospital, medical, and dental insurance.  
        Coverage for retired employees and their dependents may not 
        discriminate on the basis of evidence of insurability or 
        preexisting conditions unless identical conditions are imposed 
        on active employees in the group that the employee left.  
        Appointing authorities shall provide notice to employees no 
        later than the effective date of their retirement of the right 
        to exercise the option provided in this subdivision.  The 
        retired employee must notify the commissioner or designee of the 
        commissioner within 30 days after the effective date of the 
        retirement of intent to exercise this option. 
           Sec. 67.  Minnesota Statutes 1994, section 115C.02, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [FUND.] "Fund" means the petroleum tank release 
        cleanup fund. 
           Sec. 68.  Minnesota Statutes 1994, section 115C.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE SOURCES.] Revenue from the 
        following sources must be deposited in the state treasury and 
        credited to a petroleum tank release cleanup account in the 
        environmental fund: 
           (1) the proceeds of the fee imposed by subdivision 3; 
           (2) money recovered by the state under sections 115C.04, 
        115C.05, and 116.491, including administrative expenses, civil 
        penalties, and money paid under an agreement, stipulation, or 
        settlement; 
           (3) interest attributable to investment of money in the 
        account fund; 
           (4) money received by the board and agency in the form of 
        gifts, grants other than federal grants, reimbursements, or 
        appropriations from any source intended to be used for the 
        purposes of the account fund; 
           (5) fees charged for the operation of the tank installer 
        certification program established under section 116.491; and 
           (6) money obtained from the return of reimbursements, civil 
        penalties, or other board action under this chapter. 
           Sec. 69.  Minnesota Statutes 1994, section 115C.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [IMPOSITION OF FEE.] The board shall notify the 
        commissioner of revenue if the unencumbered balance of the 
        account fund falls below $4,000,000, and within 60 days after 
        receiving notice from the board, the commissioner of revenue 
        shall impose the fee established in subdivision 3 on the use of 
        a tank for four calendar months, with payment to be submitted 
        with each monthly distributor tax return. 
           Sec. 70.  Minnesota Statutes 1994, section 115C.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPENDITURES.] (a) Money in the account fund may 
        only be spent:  
           (1) to administer the petroleum tank release cleanup 
        program established in this chapter; 
           (2) for agency administrative costs under sections 116.46 
        to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
        action taken by the agency under section 115C.03, including 
        investigations; 
           (3) for costs of recovering expenses of corrective actions 
        under section 115C.04; 
           (4) for training, certification, and rulemaking under 
        sections 116.46 to 116.50; 
           (5) for agency administrative costs of enforcing rules 
        governing the construction, installation, operation, and closure 
        of aboveground and underground petroleum storage tanks; 
           (6) for reimbursement of the harmful substance compensation 
        account under subdivision 5 and section 115B.26, subdivision 4; 
        and 
           (7) for administrative and staff costs as set by the board 
        to administer the petroleum tank release program established in 
        this chapter. 
           (b) Money in the account fund is appropriated to the board 
        to make reimbursements or payments under this section. 
           Sec. 71.  Minnesota Statutes 1994, section 116G.15, is 
        amended to read: 
           116G.15 [MISSISSIPPI RIVER CRITICAL AREA.] 
           (a) The federal Mississippi National River and Recreation 
        Area established pursuant to United States Code, title 16, 
        section 460zz-2(k), is designated an area of critical concern in 
        accordance with this chapter.  The governor shall review the 
        existing Mississippi river critical area plan and specify any 
        additional standards and guidelines to affected communities in 
        accordance with section 116G.06, subdivision 2, paragraph (b), 
        clauses (3) and (4), needed to insure preservation of the area 
        pending the completion of the federal plan. 
           The results of an environmental impact statement prepared 
        under chapter 116D begun before and completed after July 1, 
        1994, for a proposed project that is located in the Mississippi 
        river critical area north of the United States Army Corps of 
        Engineers Lock and Dam Number One must be submitted in a report 
        to the chairs of the environment and natural resources policy 
        and finance committees of the house of representatives and the 
        senate prior to the issuance of any state or local permits and 
        the authorization for an issuance of any bonds for the project.  
        A report made under this paragraph shall be submitted by the 
        responsible governmental unit that prepared the environmental 
        impact statement, and must list alternatives to the project that 
        are determined by the environmental impact statement to be 
        economically less expensive and environmentally superior to the 
        proposed project and identify any legislative actions that may 
        assist in the implementation of environmentally superior 
        alternatives.  This paragraph does not apply to a proposed 
        project to be carried out by the metropolitan council or a 
        metropolitan agency as defined in section 473.121. 
           (b) If the results of an environmental impact statement 
        required to be submitted by paragraph (a) indicate that there is 
        an economically less expensive and environmentally superior 
        alternative, then no member agency of the environmental quality 
        board shall issue a permit for the facility that is the subject 
        of the environmental impact statement, other than an 
        economically less expensive and environmentally superior 
        alternative, nor shall any government bonds be issued for the 
        facility, other than an economically less expensive and 
        environmentally superior alternative, until after the 
        legislature has adjourned its regular session sine die in 1996. 
           Sec. 72.  Minnesota Statutes 1994, section 197.05, is 
        amended to read: 
           197.05 [FUND, HOW EXPENDED.] 
           The state soldiers' assistance fund shall be administered 
        by the commissioner of veterans affairs and shall be used to 
        locate and investigate the facts as to any citizen of Minnesota 
        or resident alien residing in Minnesota who served in the 
        military or naval forces of the United States and who is 
        indigent or suffering from any disability whether acquired in 
        the service or not; to assist the person and the person's 
        dependents as hereinafter provided in establishing and proving 
        any just claim the person may have against the United States 
        government, or any other government or state for compensation, 
        insurance, relief, or other benefits; to provide emergency 
        hospitalization, treatment, maintenance, and relief for any 
        person suffering from disability who was a bona fide resident of 
        the state at the time the need arose and the person's 
        dependents, as hereinafter provided; and to cooperate with other 
        state, municipal, and county officials and civic or civilian 
        agencies or organizations in carrying out the provisions of 
        sections 197.01 to 197.07.  The commissioner shall limit 
        financial assistance to veterans and dependents to six months, 
        unless recipients have been certified as ineligible for other 
        benefit programs. 
           The fund is appropriated to be used in the manner 
        determined by the commissioner of veterans affairs for these 
        purposes. 
           Sec. 73.  Minnesota Statutes 1994, section 240.155, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REIMBURSEMENT ACCOUNT CREDIT.] Money 
        received by the commission as reimbursement for the costs of 
        services provided by assistant veterinarians and, stewards, and 
        medical testing of horses must be deposited in the state 
        treasury and credited to a racing commission reimbursement 
        account, except as provided under subdivision 2.  Receipts are 
        appropriated to the commission to pay the costs of providing the 
        services. 
           Sec. 74.  Minnesota Statutes 1994, section 240.24, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEES.] The commission shall establish by rule a 
        fee or schedule of fees to recover the costs of medical testing 
        of horses running at racetracks licensed by the commission.  
        Fees charged for the testing of horses shall cover the cost of 
        the medical testing laboratory.  Fee receipts shall be deposited 
        in the state treasury and credited to the general fund racing 
        reimbursement account. 
           Sec. 75.  Minnesota Statutes 1994, section 240A.08, is 
        amended to read: 
           240A.08 [APPROPRIATION.] 
           $750,000 is appropriated annually from the general fund to 
        the Minnesota amateur sports commission for the purpose of 
        entering into long-term leases, use, or other agreements with 
        the metropolitan sports facilities commission for the conduct of 
        amateur sports activities at the basketball and hockey arena, 
        consistent with the purposes set forth in this chapter, 
        including (1) stimulating and promoting amateur sports, (2) 
        promoting physical fitness by promoting participation in sports, 
        (3) promoting the development of recreational amateur sport 
        opportunities and activities, and (4) promoting local, regional, 
        national, and international amateur sport competitions and 
        events.  The metropolitan sports facilities commission may 
        allocate 50 dates a year for the conduct of amateur sports 
        activities at the basketball and hockey arena by the amateur 
        sports commission.  At least 12 of the dates must be on a 
        Friday, Saturday, or Sunday.  If any amateur sports activities 
        conducted by the amateur sports commission at the basketball and 
        hockey arena are restricted to participants of one gender, an 
        equal number of activities on comparable days of the week must 
        be conducted for participants of the other gender, but not 
        necessarily in the same year.  The legislature reserves the 
        right to repeal or amend this appropriation, and does not intend 
        this appropriation to create public debt. 
           The books, records, documents, accounting procedures, and 
        practices of the metropolitan sports facilities commission, the 
        Minneapolis community development agency, and any corporation 
        with which the Minnesota amateur sports commission may contract 
        for use of the basketball and hockey arena are available for 
        review by the Minnesota amateur sports commission, the 
        legislative auditor, and the chairs of the state government 
        finance divisions of the senate and the house of 
        representatives, subject to chapter 13 and section 473.598, 
        subdivision 4. 
           Sec. 76.  Minnesota Statutes 1994, section 240A.09, is 
        amended to read: 
           240A.09 [PLAN DEVELOPMENT; CRITERIA.] 
           The Minnesota amateur sports commission shall develop a 
        plan to promote the development of proposals for new statewide 
        public ice facilities including proposals for ice centers and 
        matching grants based on the criteria in this section. 
           (a) For ice center proposals, the commission will give 
        priority to proposals that come from more than one local 
        government unit and that, in the metropolitan area as defined in 
        section 473.121, subdivision 2, involve construction of more 
        than three at least two ice sheets in a single facility. 
           (b) The Minnesota amateur sports commission shall 
        administer a site selection process for the ice centers.  The 
        commission shall invite proposals from cities or counties or 
        consortia of cities.  A proposal for an ice center must include 
        matching contributions including in-kind contributions of land, 
        access roadways and access roadway improvements, and necessary 
        utility services, landscaping, and parking. 
           (c) Proposals for ice centers and matching grants must 
        provide for meeting the demand for ice time for female groups by 
        offering up to 50 percent of prime ice time, as needed, to 
        female groups.  For purposes of this section, prime ice time 
        means the hours of 4:00 p.m. to 10:00 p.m. Monday to Friday and 
        9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.  
           (d) The location for all proposed facilities must be in 
        areas of maximum demonstrated interest and must maximize 
        accessibility to an arterial highway. 
           (e) To the extent possible, all proposed facilities must be 
        dispersed equitably and, must be located to maximize potential 
        for full utilization and profitable operation, and must 
        accommodate noncompetitive family and community skating for all 
        ages. 
           (f) The Minnesota amateur sports commission may also use 
        the funds to upgrade current facilities, purchase girls' ice 
        time, or conduct amateur women's hockey and other ice sport 
        tournaments. 
           (g) To the extent possible, 50 percent of all grants must 
        be awarded to communities in greater Minnesota.  
           (h) To the extent possible, technical assistance shall be 
        provided to Minnesota communities by the commission on ice arena 
        planning, design, and operation, including the marketing of ice 
        time. 
           (i) The commission may use funds for rehabilitation and 
        renovation grants.  Priority must be given to grant applications 
        for indoor air quality improvements, including zero emission ice 
        resurfacing equipment. 
           (j) At least ten percent of the grant funds must be used 
        for ice centers designed for sports other than hockey. 
           Sec. 77.  Minnesota Statutes 1994, section 240A.10, is 
        amended to read: 
           240A.10 [AGREEMENTS.] 
           Subdivision 1.  [ICE ARENA FACILITIES.] The Minnesota 
        amateur sports commission may enter into agreements with local 
        units of government and provide financial assistance in the form 
        of grants for the construction of ice arena facilities that in 
        the determination of the commission, conform to its criteria. 
           Subd. 2.  [EQUIPMENT; REVOLVING FUND.] The commission may 
        enter into cooperative purchasing agreements under section 
        471.59 with local governments to purchase ice arena equipment 
        and services through state contracts.  The cooperative ice arena 
        equipment purchasing revolving fund is a separate account in the 
        state treasury.  The commission may charge a fee to cover the 
        commission's administrative expenses to government units that 
        have joint or cooperative purchasing agreements with the state 
        under section 471.59.  The fees collected must be deposited in 
        the revolving fund established by this subdivision.  Money in 
        the fund is appropriated to the commission to administer the 
        programs and services covered by this subdivision. 
           Sec. 78.  Minnesota Statutes 1994, section 349.151, 
        subdivision 4b, is amended to read:  
           Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
        The board may by rule authorize but not require the use of 
        pull-tab dispensing devices. 
           (b) Rules adopted under paragraph (a): 
           (1) must limit the number of pull-tab dispensing devices on 
        any permitted premises to three; 
           (2) must limit the use of pull-tab dispensing devices to a 
        permitted premises which is (i) a licensed premises for on-sales 
        of intoxicating liquor or 3.2 percent malt beverages or (ii) a 
        licensed bingo hall that allows gambling only by persons 18 
        years or older; and 
           (3) must prohibit the use of pull-tab dispensing devices at 
        any licensed premises where pull-tabs are sold other than 
        through a pull-tab dispensing device by an employee of the 
        organization who is also the lessor or an employee of the lessor.
           (c) The director may charge a manufacturer a fee of up to 
        $5,000 per pull-tab dispensing device to cover the costs of 
        services provided by an independent testing laboratory to 
        perform testing and analysis of pull-tab dispensing devices.  
        The director shall deposit in a separate account in the state 
        treasury all money the director receives as reimbursement for 
        the costs of services provided by independent testing 
        laboratories that have entered into contracts with the state to 
        perform testing and analysis of pull-tab dispensing devices.  
        Money in the account is appropriated to the director to pay the 
        costs of services under those contracts. 
           Sec. 79.  Minnesota Statutes 1994, section 349A.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DIRECTOR.] A state lottery is established 
        under the supervision and control of the director of the state 
        lottery appointed by the governor with the advice and consent of 
        the senate.  The governor shall appoint the director from a list 
        of at least three persons recommended to the governor by the 
        board.  The director must be qualified by experience and 
        training in the operation of a lottery to supervise the 
        lottery.  The director serves in the unclassified service.  The 
        annual salary rate authorized for the director is equal to 80 
        percent of the salary rate prescribed for the governor as of the 
        effective date of Laws 1993, chapter 146. 
           Sec. 80.  Minnesota Statutes 1994, section 349A.03, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [BOARD ABOLISHED.] The board is abolished on July 
        1, 1995.  The terms of all members of the board serving on that 
        date expire on that date. 
           Sec. 81.  Minnesota Statutes 1994, section 349A.04, is 
        amended to read: 
           349A.04 [LOTTERY GAME PROCEDURES.] 
           The director may adopt game procedures governing the 
        following elements of the lottery: 
           (1) lottery games; 
           (2) ticket prices; 
           (3) number and size of prizes; 
           (4) methods of selecting winning tickets; and 
           (5) frequency and method of drawings. 
           The adoption of lottery game procedures is not subject to 
        chapter 14.  Before adopting a lottery game procedure, the 
        director shall submit the procedure to the board for its review 
        and comment. 
           Sec. 82.  Minnesota Statutes 1994, section 349A.05, is 
        amended to read: 
           349A.05 [RULES.] 
           The director may adopt rules, including emergency rules, 
        under chapter 14 governing the following elements of the lottery:
           (1) the number and types of lottery retailers' locations; 
           (2) qualifications of lottery retailers and application 
        procedures for lottery retailer contracts; 
           (3) investigation of lottery retailer applicants; 
           (4) appeal procedures for denial, suspension, or 
        cancellation of lottery retailer contracts; 
           (5) compensation of lottery retailers; 
           (6) accounting for and deposit of lottery revenues by 
        lottery retailers; 
           (7) procedures for issuing lottery procurement contracts 
        and for the investigation of bidders on those contracts; 
           (8) payment of prizes; 
           (9) procedures needed to ensure the integrity and security 
        of the lottery; and 
           (10) other rules the director considers necessary for the 
        efficient operation and administration of the lottery.  
           Before adopting a rule the director shall submit the rule 
        to the board for its review and comment.  
           Sec. 83.  Minnesota Statutes 1994, section 349A.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [QUALIFICATIONS.] (a) The director may not 
        contract with a retailer who: 
           (1) is under the age of 18; 
           (2) is in business solely as a seller of lottery tickets; 
           (3) owes $500 or more in delinquent taxes as defined in 
        section 270.72; 
           (4) has been convicted within the previous five years of a 
        felony or gross misdemeanor, any crime involving fraud or 
        misrepresentation, or a gambling-related offense; 
           (5) is a member of the immediate family, residing in the 
        same household, as the director, board member, or any employee 
        of the lottery; 
           (6) in the director's judgment does not have the financial 
        stability or responsibility to act as a lottery retailer, or 
        whose contracting as a lottery retailer would adversely affect 
        the public health, welfare, and safety, or endanger the security 
        and integrity of the lottery; or 
           (7) is a currency exchange, as defined in section 53A.01. 
           A contract entered into before August 1, 1990, which 
        violates clause (7) may continue in effect until its expiration 
        but may not be renewed. 
           (b) An organization, firm, partnership, or corporation that 
        has a stockholder who owns more than five percent of the 
        business or the stock of the corporation, an officer, or 
        director, that does not meet the requirements of paragraph (a), 
        clause (4), is not eligible to be a lottery retailer under this 
        section. 
           (c) The restrictions under paragraph (a), clause (4), do 
        not apply to an organization, partnership, or corporation if the 
        director determines that the organization, partnership, or firm 
        has terminated its relationship with the individual whose 
        actions directly contributed to the disqualification under this 
        subdivision. 
           Sec. 84.  Minnesota Statutes 1994, section 349A.08, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 
        lottery must be claimed by the winner within one year of the 
        date of the drawing at which the prize was awarded or the last 
        day sales were authorized for a game where a prize was 
        determined in a manner other than by means of a drawing.  If a 
        valid claim is not made for a prize payable directly by the 
        lottery by the end of this period, the unclaimed prize money 
        must be added by the director to prize pools of subsequent 
        lottery games the prize money is considered unclaimed and the 
        winner of the prize shall have no further claim to the prize.  A 
        prize won by a person who purchased the winning ticket in 
        violation of section 349A.12, subdivision 1, or won by a person 
        ineligible to be awarded a prize under subdivision 7 must be 
        treated as an unclaimed prize under this section.  The director 
        shall transfer 70 percent of all unclaimed prize money at the 
        end of each fiscal year from the lottery cash flow account as 
        follows:  of the 70 percent, 40 percent must be transferred to 
        the Minnesota environment and natural resources trust fund and 
        60 percent must be transferred to the general fund.  The 
        remaining 30 percent of the unclaimed prize money must be added 
        by the director to prize pools of subsequent lottery games. 
           Sec. 85.  Minnesota Statutes 1994, section 349A.08, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PAYMENTS PROHIBITED.] (a) No prize may be paid 
        to a member of the board, the director or an employee of the 
        lottery, or a member of their families residing in the same 
        household of the member, director, or employee.  No prize may be 
        paid to an officer or employee of a vendor which at the time the 
        game or drawing was being conducted was involved with providing 
        goods or services to the lottery under a lottery procurement 
        contract. 
           (b) No prize may be paid for a stolen, altered, or 
        fraudulent ticket. 
           Sec. 86.  Minnesota Statutes 1994, section 349A.10, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [TRANSFER OF CASH BALANCES.] (a) A lottery cash 
        flow account is created in the special revenue fund in the state 
        treasury.  At the end of each week the director shall deposit in 
        the lottery cash flow account from the lottery fund and the 
        lottery prize fund all amounts that the director determines are 
        not required for immediate use in the lottery fund or the 
        lottery prize fund.  The commissioner of finance shall credit to 
        the lottery cash flow account interest on all money deposited in 
        the lottery cash flow account under this subdivision.  
           (b) The director shall notify the commissioner of finance 
        whenever the director determines that money transferred under 
        paragraph (a) is required for the immediate use of the lottery 
        fund or the lottery prize fund.  Upon receiving the notification 
        the commissioner shall transfer the amount identified in the 
        notification.  Amounts necessary to make immediate payment for 
        expenses or prizes from the lottery fund or the prize fund are 
        appropriated from the lottery cash flow account to the director. 
           (c) The director shall notify the commissioner of finance 
        30 days after each month as to the amount of the net proceeds 
        that must be transferred under subdivision 5, and the director 
        shall notify the commissioner of finance 20 days after each 
        month as to the amount that must be transferred under section 
        297A.259, and as necessary the director shall notify the 
        commissioner of other amounts required by law to be transferred. 
           Sec. 87.  Minnesota Statutes 1994, section 349A.11, is 
        amended to read: 
           349A.11 [CONFLICT OF INTEREST.] 
           (a) The director, a board member, an employee of the 
        lottery, a member of the immediate family of the director, board 
        member, or employee residing in the same household may not: 
           (1) purchase a lottery ticket; 
           (2) have any personal pecuniary interest in any vendor 
        holding a lottery procurement contract, or in any lottery 
        retailer; or 
           (3) receive any gift, gratuity, or other thing of value, 
        excluding food or beverage, from any lottery vendor or lottery 
        retailer, or person applying to be a retailer or vendor, in 
        excess of $100 in any calendar year.  
           (b) A violation of paragraph (a), clause (1), is a 
        misdemeanor.  A violation of paragraph (a), clause (2), is a 
        gross misdemeanor.  A violation of paragraph (a), clause (3), is 
        a misdemeanor unless the gift, gratuity, or other item of value 
        received has a value in excess of $500, in which case a 
        violation is a gross misdemeanor.  
           (c) The director or an unclassified employee of the lottery 
        may not, within one year of terminating employment with the 
        lottery, accept employment with, act as an agent or attorney 
        for, or otherwise represent any person, corporation, or entity 
        that had any lottery procurement contract or bid for a lottery 
        procurement contract with the lottery within a period of two 
        years prior to the termination of their employment.  A violation 
        of this paragraph is a misdemeanor.  
           Sec. 88.  Minnesota Statutes 1994, section 349A.12, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LOTTERY RETAILERS AND VENDORS.] A person who is 
        a lottery retailer, or is applying to be a lottery retailer, a 
        person applying for a contract with the director, or a person 
        under contract with the director to supply goods or services to 
        lottery may not pay, give, or make any economic opportunity, 
        gift, loan, gratuity, special discount, favor, hospitality, or 
        service, excluding food or beverage, having an aggregate value 
        of over $100 in any calendar year to the director, board member, 
        employee of the lottery, or to a member of the immediate family 
        residing in the same household as that person.  
           Sec. 89.  Minnesota Statutes 1994, section 352.15, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEDUCTING HEALTH INSURANCE PREMIUMS.] The board 
        may direct, at its discretion, the deduction of a retiree's 
        health or dental insurance premiums and transfer of the amounts 
        to a health or dental insurance carrier covering state 
        employees.  The insurance carrier must certify that the retired 
        employee has signed an authorization for the deduction and 
        provide a computer readable roster of covered retirees and 
        amounts.  The health or dental insurance carrier must refund 
        deductions withheld from a retiree's check in error directly to 
        the retiree.  The board shall require the insurance carrier to 
        reimburse the fund for the administrative expense of withholding 
        the premium amounts.  The insurance carrier shall assume 
        liability for any failure of the system to properly withhold the 
        premium amounts. 
           Sec. 90.  Minnesota Statutes 1994, section 462.358, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [DEDICATION.] The regulations may require that a 
        reasonable portion of any proposed subdivision be dedicated to 
        the public or preserved for public use as streets, roads, 
        sewers, electric, gas, and water facilities, storm water 
        drainage and holding areas or ponds and similar utilities and 
        improvements.  
           In addition, the regulations may require that a reasonable 
        portion of any proposed subdivision be dedicated to the public 
        or preserved for conservation purposes or for public use as 
        parks, recreational facilities as defined and outlined in 
        section 471.191, playgrounds, trails, wetlands, or open space; 
        provided that (a) the municipality may choose to accept an 
        equivalent amount in cash from the applicant for part or all of 
        the portion required to be dedicated to such public uses or 
        purposes based on the fair market value of the land no later 
        than at the time of final approval, (b) any cash payments 
        received shall be placed in a special fund by the municipality 
        used only for the purposes for which the money was obtained, (c) 
        in establishing the reasonable portion to be dedicated, the 
        regulations may consider the open space, park, recreational, or 
        common areas and facilities which the applicant proposes to 
        reserve for the subdivision, and (d) the municipality reasonably 
        determines that it will need to acquire that portion of land for 
        the purposes stated in this paragraph as a result of approval of 
        the subdivision. 
           Sec. 91.  Laws 1991, chapter 235, article 5, section 3, is 
        amended to read: 
           Sec. 3.  [REPEALER.] 
           Section 1, subdivision 2, is repealed effective July 1, 
        1995 1999. 
           Sec. 92.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
           Appointing authorities in state government shall encourage 
        each employee to take an unpaid leave of absence for up to 160 
        hours during the period ending June 30, 1997.  Each appointing 
        authority approving such a leave shall allow the employee to 
        continue accruing vacation and sick leave, be eligible for paid 
        holidays and insurance benefits, accrue seniority, and accrue 
        service credit in state retirement plans permitting service 
        credits for authorized leaves of absence as if the employee had 
        actually been employed during the time of the leave.  If the 
        leave of absence is for one full pay period or longer, any 
        holiday pay shall be included in the first payroll warrant after 
        return from the leave of absence.  The appointing authority 
        shall attempt to grant requests for unpaid leaves of absence 
        consistent with the need to continue efficient operation of the 
        agency.  However, each appointing authority shall retain 
        discretion to grant or refuse to grant requests for leaves of 
        absence and to schedule and cancel leaves, subject to applicable 
        provisions of collective bargaining agreements and compensation 
        plans.  Any cost savings resulting from this section cancel to 
        the fund from which the money was saved.  It is anticipated that 
        this section will result in savings to the general fund of 
        $400,000 in each year of the biennium ending June 30, 1997. 
           Sec. 93.  [SPENDING LIMITATION ON CONTRACTS.] 
           (a) During the biennium ending June 30, 1997, the aggregate 
        amount spent by all departments or agencies defined in Minnesota 
        Statutes, section 15.91, subdivision 1, on professional or 
        technical service contracts may not exceed 95 percent of the 
        aggregate amount these departments or agencies spent on these 
        contracts during the biennium from July 1, 1993, to June 30, 
        1995.  For purposes of this section, professional or technical 
        service contracts are as defined in Minnesota Statutes, section 
        16B.17, but do not include contracts for highway construction or 
        maintenance, contracts between state agencies, contracts paid 
        for from insurance trust funds, gift and deposit funds, capital 
        projects funds, or federal funds, contracts with private 
        collection agencies, contracts that are entered into in 
        connection with the agency's distribution of grant funds, or 
        contracts entered into under Minnesota Statutes, section 
        16B.35.  The governor or a designated official must limit or 
        disapprove proposed contracts as necessary to comply with this 
        section. 
           (b) During the biennium ending June 30, 1997, the amount 
        spent by (1) the house of representatives; (2) the senate; and 
        (3) the legislative coordinating commission and all groups under 
        its jurisdiction, from direct-appropriated funds on professional 
        or technical service contracts may not exceed 95 percent of the 
        amount spent on these contracts from direct-appropriated funds 
        during the biennium from July 1, 1993, to June 30, 1995.  Each 
        entity listed in clauses (1), (2), and (3) of this paragraph 
        must be treated separately for purposes of determining 
        compliance with this paragraph, except that the legislative 
        coordinating commission and all groups under its jurisdiction 
        must be treated as one unit.  For purposes of this paragraph, 
        "professional or technical service contract" has the meaning 
        defined in section 16B.17, but does not include contracts for 
        actuarial services entered into by the legislative commission on 
        pensions and retirement, or contracts with other legislative or 
        state executive agencies.  The house of representatives 
        committee on rules and legislative administration, the senate 
        committee on rules and administration, and the legislative 
        coordinating commission must each determine the amount of the 
        reduction to be made under this paragraph. 
           Sec. 94.  [AGENCY EXAMINATION.] 
           During the interim between the 1995 and 1996 regular 
        sessions, the state government finance divisions of the senate 
        and house of representatives shall conduct a thorough review of 
        the operation and financing of the following state agencies:  
        the departments of administration, finance, revenue, and human 
        rights, the board of the arts, and the Minnesota amateur sports 
        commission.  The agencies shall make their books, records, 
        documents, accounting procedures, and practices available for 
        examination by the divisions and division staff.  Agency 
        personnel shall assist the divisions and division staff to 
        develop a better understanding of how the agencies operate. 
           Sec. 95.  [HEARINGS.] 
           The senate and house of representatives shall give full 
        hearings during the 1996 regular session to issues related to 
        the project in section 71. 
           Sec. 96.  [REVISOR INSTRUCTION.] 
           The revisor of statutes shall change the term "account," 
        where it refers to the petroleum tank release cleanup account, 
        to "fund" in the following sections of Minnesota Statutes:  
        115B.26, 115C.03, 115C.08, 115C.09, 115C.10, 115C.11, 115E.11, 
        and 135A.045, and in the headnote of section 115C.08. 
           Sec. 97.  [REPEALER.] 
           (a) Section 64 (43A.211) is repealed July 1, 1999. 
           (b) Minnesota Statutes 1994, section 115C.02, subdivision 
        1a, is repealed. 
           (c) Minnesota Statutes 1994, sections 349A.01, subdivision 
        2, and 349A.02, subdivision 8, are repealed. 
           Sec. 98.  [EFFECTIVE DATES.] 
           Subdivision 1.  [REVISOR.] Section 38 is effective July 1, 
        1997. 
           Subd. 2.  [1995 APPROPRIATIONS.] Section 34 is effective 
        the day following final enactment. 
           Subd. 3.  [AMATEUR SPORTS COMMISSION.] Sections 76, 77, and 
        90 are effective the day following final enactment. 
           Subd. 4.  [RETIRED EMPLOYEES.] Section 66 applies to people 
        who retire on or after the effective date of that section. 
           Subd. 5.  [PULL-TAB.] Section 78 is effective the day 
        following final enactment. 
           Subd. 6.  [UNCLAIMED PRIZES.] Section 84 is effective the 
        day following final enactment and applies to unclaimed prize 
        money not then committed to a prize pool. 
                                   ARTICLE 2
                                 BUILDING CODE 
           Section 1.  Minnesota Statutes 1994, section 16B.59, is 
        amended to read: 
           16B.59 [STATE BUILDING CODE; POLICY AND PURPOSE.] 
           The state building code governs the construction, 
        reconstruction, alteration, and repair of state-owned buildings 
        and other structures to which the code is applicable.  The 
        commissioner shall administer and amend a state code of building 
        construction which will provide basic and uniform performance 
        standards, establish reasonable safeguards for health, safety, 
        welfare, comfort, and security of the residents of this state 
        and provide for the use of modern methods, devices, materials, 
        and techniques which will in part tend to lower construction 
        costs.  The construction of buildings should be permitted at the 
        least possible cost consistent with recognized standards of 
        health and safety.  
           Sec. 2.  Minnesota Statutes 1994, section 16B.60, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] For the purposes of sections 
        16B.59 to 16B.73 16B.75, the terms defined in this section have 
        the meanings given them.  
           Sec. 3.  Minnesota Statutes 1994, section 16B.60, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CODE.] "Code" means the state building code 
        adopted by the commissioner in accordance with sections 16B.59 
        to 16B.73 16B.75. 
           Sec. 4.  Minnesota Statutes 1994, section 16B.61, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
        16B.59 to 16B.73 16B.75, the commissioner shall by rule 
        establish a code of standards for the construction, 
        reconstruction, alteration, and repair of state-owned buildings, 
        governing matters of structural materials, design and 
        construction, fire protection, health, sanitation, and safety.  
        The code must conform insofar as practicable to model building 
        codes generally accepted and in use throughout the United 
        States.  In the preparation of the code, consideration must be 
        given to the existing statewide specialty codes presently in use 
        in the state.  Model codes with necessary modifications and 
        statewide specialty codes may be adopted by reference.  The code 
        must be based on the application of scientific principles, 
        approved tests, and professional judgment.  To the extent 
        possible, the code must be adopted in terms of desired results 
        instead of the means of achieving those results, avoiding 
        wherever possible the incorporation of specifications of 
        particular methods or materials.  To that end the code must 
        encourage the use of new methods and new materials.  Except as 
        otherwise provided in sections 16B.59 to 16B.73 16B.75, the 
        commissioner shall administer and enforce the provisions of 
        those sections.  
           Sec. 5.  Minnesota Statutes 1994, section 16B.61, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ENFORCEMENT BY CERTAIN BODIES.] Under the 
        direction and supervision of the commissioner, the provisions of 
        the code relating to electrical installations shall be enforced 
        by the state board of electricity, pursuant to the Minnesota 
        electrical act, the provisions relating to plumbing shall be 
        enforced by the commissioner of health, the provisions relating 
        to fire protection the Minnesota uniform fire code shall be 
        enforced by the state fire marshal, the provisions relating to 
        high pressure steam piping and appurtenances and elevators shall 
        be enforced by the department of labor and industry, and the 
        code as applied to public school buildings shall be enforced by 
        the state board of education. Fees for inspections conducted by 
        the state board of electricity shall be paid in accordance with 
        the rules of the state board of electricity.  
           Sec. 6.  Minnesota Statutes 1994, section 16B.61, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ACCESSIBILITY.] (a)  [PUBLIC BUILDINGS.] The 
        code must provide for making public buildings constructed or 
        remodeled after July 1, 1963, accessible to and usable by 
        physically handicapped persons, although this does not require 
        the remodeling of public buildings solely to provide 
        accessibility and usability to the physically handicapped when 
        remodeling would not otherwise be undertaken.  
           (b)  [LEASED SPACE.] No agency of the state may lease space 
        for agency operations in a non-state-owned building unless the 
        building satisfies the requirements of the state building code 
        for accessibility by the physically handicapped, or is eligible 
        to display the state symbol of accessibility.  This limitation 
        applies to leases of 30 days or more for space of at least 1,000 
        square feet.  
           (c)  [MEETINGS OR CONFERENCES.] Meetings or conferences for 
        the public or for state employees which are sponsored in whole 
        or in part by a state agency must be held in buildings that meet 
        the state building code requirements relating to accessibility 
        for physically handicapped persons.  This subdivision does not 
        apply to any classes, seminars, or training programs offered by 
        a state university, the University of Minnesota, or a state 
        community college.  Meetings or conferences intended for 
        specific individuals none of whom need the accessibility 
        features for handicapped persons specified in the state building 
        code need not comply with this subdivision unless a handicapped 
        person gives reasonable advance notice of an intent to attend 
        the meeting or conference.  When sign language interpreters will 
        be provided, meetings or conference sites must be chosen which 
        allow hearing impaired participants to see their signing clearly.
           (d)  [EXEMPTIONS.] The commissioner may grant an exemption 
        from the requirements of paragraphs (b) and (c) in advance if an 
        agency has demonstrated that reasonable efforts were made to 
        secure facilities which complied with those requirements and if 
        the selected facilities are the best available for access for 
        handicapped persons.  Exemptions shall be granted using criteria 
        developed by the commissioner in consultation with the council 
        on disability.  
           (e)  [SYMBOL INDICATING ACCESS.] The wheelchair symbol 
        adopted by Rehabilitation International's Eleventh World 
        Congress is the state symbol indicating buildings, facilities, 
        and grounds which are accessible to and usable by handicapped 
        persons.  In the interests of uniformity, this symbol in its 
        white on blue format is the sole symbol for display in or on all 
        public or private buildings, facilities, and grounds which 
        qualify for its use.  The secretary of state shall obtain the 
        symbol and keep it on file.  No building, facility, or grounds 
        may display the symbol unless it is in compliance with the rules 
        adopted by the commissioner under subdivision 1.  Before any 
        rules are proposed for adoption under this paragraph, the 
        commissioner shall consult with the council on disability.  
        Rules adopted under this paragraph must be enforced in the same 
        way as other accessibility rules of the state building code.  
           (f)  [MUNICIPAL ENFORCEMENT.] Municipalities which have not 
        adopted the state building code may enforce the building code 
        requirements for handicapped persons by either entering into a 
        joint powers agreement for enforcement with another municipality 
        which has adopted the state building code; or contracting for 
        enforcement with an individual certified under section 16B.65, 
        subdivision 3, to enforce the state building code.  
           (g)  [EQUIPMENT ALLOWED.] The code must allow the use of 
        vertical wheelchair lifts and inclined stairway wheelchair lifts 
        in public buildings.  An inclined stairway wheelchair lift must 
        be equipped with light or sound signaling device for use during 
        operation of the lift.  The stairway or ramp shall be marked in 
        a bright color that clearly indicates the outside edge of the 
        lift when in operation.  The code shall not require a guardrail 
        between the lift and the stairway or ramp.  Compliance with this 
        provision by itself does not mean other handicap accessibility 
        requirements have been met. 
           Sec. 7.  Minnesota Statutes 1994, section 16B.63, 
        subdivision 3, is amended to read: 
           Subd. 3.  [POWERS AND DUTIES.] The state building official 
        may, with the approval of the commissioner, employ personnel 
        necessary to carry out the inspector's function under sections 
        16B.59 to 16B.73 16B.75.  The state building official shall 
        distribute without charge one copy of the code to each 
        municipality within the state.  Additional copies shall be made 
        available to municipalities and interested parties for a fee 
        prescribed by the commissioner.  The state building official 
        shall perform other duties in administering the code assigned by 
        the commissioner.  
           Sec. 8.  Minnesota Statutes 1994, section 16B.65, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPOINTMENTS.] The governing body of each 
        municipality shall, unless other means are already provided, 
        appoint a person building official to administer the code who 
        shall be known as a building official.  Two or more 
        municipalities may combine in the appointment of a single 
        building official for the purpose of administering the 
        provisions of the code within their communities.  In those 
        municipalities for which no building officials have been 
        appointed, the state building inspector, with the approval of 
        the commissioner, may appoint building officials to serve until 
        the municipalities have made an appointment.  If unable to make 
        an appointment, the state building inspector may use whichever 
        state employees or state agencies are necessary to perform the 
        duties of the building official.  All costs incurred by virtue 
        of an appointment by the state building inspector or services 
        rendered by state employees must be borne by the involved 
        municipality.  Receipts arising from the appointment must be 
        paid into the state treasury and credited to the general fund.  
           Sec. 9.  Minnesota Statutes 1994, section 16B.65, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CERTIFICATION.] The commissioner shall:  
           (1) prepare and conduct written and practical examinations 
        to determine if a person is qualified pursuant to subdivision 2 
        to be a building official; 
           (2) accept documentation of successful completion of 
        testing programs developed by 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 clause (1), 
        (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 nonrefundable 
        fee of $70.  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 
        commissioner determines that the official is qualified.  The 
        commissioner 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. 10.  Minnesota Statutes 1994, section 16B.65, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DUTIES.] Building officials shall, in the 
        municipality for which they are appointed, attend to all aspects 
        of code administration for which they are certified, including 
        the issuance of all building permits and the inspection of all 
        manufactured home installations.  The commissioner may direct a 
        municipality with a building official to perform services for 
        another municipality, and in that event the municipality being 
        served shall pay the municipality rendering the services the 
        reasonable costs of the services.  The costs may be subject to 
        approval by the commissioner.  
           Sec. 11.  Minnesota Statutes 1994, section 16B.65, 
        subdivision 7, is amended to read: 
           Subd. 7.  [CONTINUING EDUCATION.] Subject to sections 
        16B.59 to 16B.73 16B.75, the commissioner may by rule establish 
        or approve continuing education programs for municipal building 
        officials dealing with matters of building code administration, 
        inspection, and enforcement.  
           Effective January 1, 1985, each person certified as a 
        building official for the state must satisfactorily complete 
        applicable educational programs established or approved by the 
        commissioner every three calendar years to retain certification. 
           Each person certified as a state building official must 
        submit in writing to the commissioner an application for renewal 
        of certification within 60 days of the last day of the third 
        calendar year following the last certificate issued.  Each 
        application for renewal must be accompanied by proof of 
        satisfactory completion of minimum continuing education 
        requirements and the certification renewal fee established by 
        the commissioner.  
           For persons certified prior to January 1, 1985, the first 
        three-year period commences January 1, 1985. 
           Sec. 12.  Minnesota Statutes 1994, 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 nonrefundable fee of $70, payable to the 
        commissioner, with the request for appeal.  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. 13.  Minnesota Statutes 1994, section 16B.70, is 
        amended to read: 
           16B.70 [SURCHARGE.] 
           Subdivision 1.  [COMPUTATION.] To defray the costs of 
        administering sections 16B.59 to 16B.73 16B.75, a surcharge is 
        imposed on all permits issued by municipalities in connection 
        with the construction of or addition or alteration to buildings 
        and equipment or appurtenances after June 30, 1971, as follows:  
           If the fee for the permit issued is fixed in amount the 
        surcharge is equivalent to one-half mill (.0005) of the fee or 
        50 cents, whichever amount is greater.  For all other permits, 
        the surcharge is as follows: 
           (1) if the valuation of the structure, addition, or 
        alteration is $1,000,000 or less, the surcharge is equivalent to 
        one-half mill (.0005) of the valuation of the structure, 
        addition, or alteration; 
           (2) if the valuation is greater than $1,000,000, the 
        surcharge is $500 plus two-fifths mill (.0004) of the value 
        between $1,000,000 and $2,000,000; 
           (3) if the valuation is greater than $2,000,000, the 
        surcharge is $900 plus three-tenths mill (.0003) of the value 
        between $2,000,000 and $3,000,000; 
           (4) if the valuation is greater than $3,000,000, the 
        surcharge is $1,200 plus one-fifth mill (.0002) of the value 
        between $3,000,000 and $4,000,000; 
           (5) if the valuation is greater than $4,000,000, the 
        surcharge is $1,400 plus one-tenth mill (.0001) of the value 
        between $4,000,000 and $5,000,000; and 
           (6) if the valuation exceeds $5,000,000, the surcharge is 
        $1,500 plus one-twentieth mill (.00005) of the value that 
        exceeds $5,000,000.  
           Subd. 2.  [COLLECTION AND REPORTS.] All permit surcharges 
        must be collected by each municipality and a portion of them 
        remitted to the state.  Each municipality having a population 
        greater than 20,000 people shall prepare and submit to the 
        commissioner once a month a report of fees and surcharges on 
        fees collected during the previous month but shall retain the 
        greater of two percent or that amount collected up to $25 to 
        apply against the administrative expenses the municipality 
        incurs in collecting the surcharges.  All other municipalities 
        shall submit the report and surcharges on fees once a quarter 
        but shall retain the greater of four percent or that amount 
        collected up to $25 to apply against the administrative expenses 
        the municipalities incur in collecting the surcharges.  The 
        report, which must be in a form prescribed by the commissioner, 
        must be submitted together with a remittance covering the 
        surcharges collected by the 15th day following the month or 
        quarter in which the surcharges are collected.  All surcharges 
        and other fees prescribed by sections 16B.59 to 16B.73 16B.75, 
        which are payable to the state, must be paid to the commissioner 
        who shall deposit them in the state treasury for credit to the 
        general a special revenue fund. 
           Sec. 14.  [APPROPRIATION.] 
           $1,000,000 in fiscal year 1996 and $1,000,000 in fiscal 
        year 1997 is appropriated from the special revenue fund for 
        transfer by the commissioner of finance to the general fund. 
                                   ARTICLE 3 
                                     ZONING 
           Section 1.  Minnesota Statutes 1994, section 366.10, is 
        amended to read: 
           366.10 [ZONING REGULATIONS.] 
           The board of supervisors may submit to the legal voters of 
        the town at an annual or special town meeting, the question 
        whether the board shall adopt building land use and zoning 
        regulations and restrictions in the town.  The board in a town 
        which has within its borders a hospital established in 
        accordance with Laws 1955, chapter 227, may submit to the voters 
        at an annual or special town meeting, the question whether the 
        board shall adopt building land use and zoning regulations and 
        restrictions in the town regulating the type of buildings that 
        may be built or occupations carried on within a radius of 
        one-half mile of the hospital. 
           Sec. 2.  Minnesota Statutes 1994, section 366.12, is 
        amended to read: 
           366.12 [REGULATIONS.] 
           If a majority of the voters voting on the question vote 
        "Yes," the town board may regulate: 
           (1) the location, height, bulk, number of stories, size of 
        buildings and other structures, 
           (2) the location of roads and schools, 
           (3) the percentage of lot which may be occupied, 
           (4) the sizes of yards and other open spaces, 
           (5) the density and distribution of population, 
           (6) the uses of buildings and structures for trade, 
        industry, residence, recreation, public activities, or other 
        purposes, and 
           (7) the uses of lands for trade, industry, residence, 
        recreation, agriculture, forestry, soil conservation, water 
        supply conservation, or other purposes. 
        To carry out this section it shall issue building land use or 
        zoning permits or approvals.  It shall be unlawful to erect, 
        establish, alter, enlarge, use, occupy, or maintain a building, 
        structure, improvement, or premises without having a building 
        land use or zoning permit or approval. 
           Before adopting a regulation under this section the board 
        shall hold a public hearing on the matter with notice as 
        provided in section 366.15.  
           This section is subject to section 366.13. 
           Sec. 3.  Minnesota Statutes 1994, section 366.16, is 
        amended to read: 
           366.16 [TOWN BUILDING ZONING COMMISSIONER.] 
           The town board may enforce the regulations by withholding 
        building land use or zoning permits or approvals, building 
        permits issued under sections 16B.59 to 16B.75, or other permits 
        or approvals.  For the purposes of sections 366.10 to 366.18, it 
        may establish the position of town building zoning commissioner 
        and fix its compensation.  If a building or structure is or is 
        proposed to be erected, constructed, reconstructed, altered, or 
        used or any land is or is proposed to be used in violation of 
        sections 366.10 to 366.18 or a regulation or provision enacted 
        or adopted by the board under sections 366.10 to 366.18, the 
        board, the attorney of the county where the town is situated, 
        the town attorney, the town building zoning commissioner, or any 
        adjacent or neighboring property owner may institute any 
        appropriate action to prevent, enjoin, abate, or remove the 
        unlawful erection, construction, reconstruction, alteration, 
        maintenance, or use.  
           Sec. 4.  Minnesota Statutes 1994, section 394.33, 
        subdivision 2, is amended to read: 
           Subd. 2.  The board of supervisors of any town which has 
        adopted or desires to adopt building and zoning regulations and 
        restrictions pursuant to law shall have the authority granted 
        the governing body of any municipality as provided in section 
        394.32. 
           Sec. 5.  Minnesota Statutes 1994, section 394.361, 
        subdivision 3, is amended to read: 
           Subd. 3.  After an official map has been adopted and filed, 
        the issuance of building land use or zoning permits or approvals 
        by the county shall be subject to the provisions of this section.
        Whenever any street or highway is widened or improved or any new 
        street is opened, or interests in lands for other public 
        purposes are acquired by the county, it is not required in such 
        proceedings to pay for any building or structure placed without 
        a permit or approval or in violation of conditions of a 
        permit or approval within the limits of the mapped street or 
        highway or outside of any building line that may have been 
        established upon the existing street or within any area thus 
        identified for public purposes.  The adoption of official maps 
        does not give the county any right, title or interest in areas 
        identified for public purposes thereon, but the adoption of a 
        map does authorize the county to acquire such interests without 
        paying compensation for buildings or structures erected in such 
        areas without a permit or approval or in violation of the 
        conditions of a permit or approval.  The provisions of this 
        subdivision shall not apply to buildings or structures in 
        existence prior to the filing of the official map.  
           Sec. 6.  Minnesota Statutes 1994, section 462.358, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [TERMS OF REGULATIONS.] The standards and 
        requirements in the regulations may address without limitation:  
        the size, location, grading, and improvement of lots, 
        structures, public areas, streets, roads, trails, walkways, 
        curbs and gutters, water supply, storm drainage, lighting, 
        sewers, electricity, gas, and other utilities; the planning and 
        design of sites; access to solar energy; and the protection and 
        conservation of flood plains, shore lands, soils, water, 
        vegetation, energy, air quality, and geologic and ecologic 
        features.  The regulations shall require that subdivisions be 
        consistent with the municipality's official map if one exists 
        and its zoning ordinance, and may require consistency with other 
        official controls and the comprehensive plan.  The regulations 
        may prohibit certain classes or kinds of subdivisions in areas 
        where prohibition is consistent with the comprehensive plan and 
        the purposes of this section, particularly the preservation of 
        agricultural lands.  The regulations may prohibit, restrict or 
        control development for the purpose of protecting and assuring 
        access to direct sunlight for solar energy systems.  The 
        regulations may prohibit, restrict, or control surface, above 
        surface, or subsurface development for the purpose of protecting 
        subsurface areas for existing or potential mined underground 
        space development pursuant to sections 469.135 to 469.141, and 
        access thereto.  The regulations may prohibit the issuance of 
        building permits or approvals for any tracts, lots, or parcels 
        for which required subdivision approval has not been obtained.  
           The regulations may permit the municipality to condition 
        its approval on the construction and installation of sewers, 
        streets, electric, gas, drainage, and water facilities, and 
        similar utilities and improvements or, in lieu thereof, on the 
        receipt by the municipality of a cash deposit, certified check, 
        irrevocable letter of credit, or bond in an amount and with 
        surety and conditions sufficient to assure the municipality that 
        the utilities and improvements will be constructed or installed 
        according to the specifications of the municipality.  Sections 
        471.345 and 574.26 do not apply to improvements made by a 
        subdivider or a subdivider's contractor. 
           The regulations may permit the municipality to condition 
        its approval on compliance with other requirements reasonably 
        related to the provisions of the regulations and to execute 
        development contracts embodying the terms and conditions of 
        approval.  The municipality may enforce such agreements and 
        conditions by appropriate legal and equitable remedies. 
           Sec. 7.  Minnesota Statutes 1994, section 462.358, 
        subdivision 9, is amended to read: 
           Subd. 9.  [UNPLATTED PARCELS.] Subdivision regulations 
        adopted by municipalities may apply to parcels which are taken 
        from existing parcels of record by metes and bounds 
        descriptions, and the governing body or building authority may 
        deny the issuance of building permits or approvals, building 
        permits issued under sections 16B.59 to 16B.75, or other permits 
        or approvals to any parcels so divided, pending compliance with 
        subdivision regulations.  
           Sec. 8.  Minnesota Statutes 1994, section 462.359, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPEALS.] If a land use or zoning permit or 
        approval for a building in such location is denied, the board of 
        appeals and adjustments shall have the power, upon appeal filed 
        with it by the owner of the land, to grant a permit or approval 
        for building in such location in any case in which the board 
        finds, upon the evidence and the arguments presented to it, (a) 
        that the entire property of the appellant of which such area 
        identified for public purposes forms a part cannot yield a 
        reasonable return to the owner unless such a permit or approval 
        is granted, and (b) that balancing the interest of the 
        municipality in preserving the integrity of the official map and 
        of the comprehensive municipal plan and the interest of the 
        owner of the property in the use of the property and in the 
        benefits of ownership, the grant of such permit or approval is 
        required by considerations of justice and equity.  In addition 
        to the notice of hearing required by section 462.354, 
        subdivision 2, a notice shall be published in the official 
        newspaper once at least ten days before the day of the hearing. 
        If the board of appeals and adjustments authorizes the issuance 
        of a permit or approval the governing body or other board or 
        commission having jurisdiction shall have six months from the 
        date of the decision of the board to institute proceedings to 
        acquire such land or interest therein, and if no such 
        proceedings are started within that time, the officer 
        responsible for issuing building permits or approvals shall 
        issue the permit or approval if the application otherwise 
        conforms to local ordinances.  The board shall specify the exact 
        location, ground area, height and other details as to the extent 
        and character of the building for which the permit or approval 
        is granted. 
                                   ARTICLE 4 
                               INTERSTATE COMPACT
           Section 1.  Minnesota Statutes 1994, section 16B.75, is 
        amended to read: 
           16B.75 [INTERSTATE COMPACT ON INDUSTRIALIZED/MODULAR 
        BUILDINGS.] 
           The state of Minnesota ratifies and approves the following 
        compact: 
             INTERSTATE COMPACT ON INDUSTRIALIZED/MODULAR BUILDINGS 
                                   ARTICLE I
                      FINDINGS AND DECLARATIONS OF POLICY
           (1) The compacting states find that: 
           (a) Industrialized/modular buildings are constructed in 
        factories in the various states and are a growing segment of the 
        nation's affordable housing and commercial building stock. 
           (b) The regulation of industrialized/modular buildings 
        varies from state to state and locality to locality, which 
        creates confusion and burdens state and local building officials 
        and the industrialized/modular building industry. 
           (c) Regulation by multiple jurisdictions imposes additional 
        costs, which are ultimately borne by the owners and users of 
        industrialized/modular buildings, restricts market access and 
        discourages the development and incorporation of new 
        technologies. 
           (2) It is the policy of each of the compacting states to: 
           (a) Provide the states which regulate the design and 
        construction of industrialized/modular buildings with a program 
        to coordinate and uniformly adopt and administer the states' 
        rules and regulations for such buildings, all in a manner to 
        assure interstate reciprocity. 
           (b) Provide to the United States Congress assurances that 
        would preclude the need for a voluntary preemptive federal 
        regulatory system for modular housing, as outlined in Section 
        572 of the Housing and Community Development Act of 1987, 
        including development of model standards for modular housing 
        construction, such that design and performance will insure 
        quality, durability and safety; will be in accordance with 
        life-cycle cost-effective energy conservation standards; all to 
        promote the lowest total construction and operating costs over 
        the life of such housing. 
                                   ARTICLE II
                                  DEFINITIONS
           As used in this compact, unless the context clearly 
        requires otherwise: 
           (1) "Commission" means the interstate 
        industrialized/modular buildings commission. 
           (2) "Industrialized/modular building" means any building 
        which is of closed construction, i.e. constructed in such a 
        manner that concealed parts or processes of manufacture cannot 
        be inspected at the site, without disassembly, damage or 
        destruction, and which is made or assembled in manufacturing 
        facilities, off the building site, for installation, or assembly 
        and installation, on the building site.  "Industrialized/modular 
        building" includes, but is not limited to, modular housing which 
        is factory-built single-family and multifamily housing 
        (including closed wall panelized housing) and other modular, 
        nonresidential buildings.  "Industrialized/modular building" 
        does not include any structure subject to the requirements of 
        the National Manufactured Home Construction and Safety Standards 
        Act of 1974. 
           (3) "Interim reciprocal agreement" means a formal 
        reciprocity agreement between a noncompacting state wherein the 
        noncompacting state agrees that labels evidencing compliance 
        with the model rules and regulations for industrialized/modular 
        buildings, as authorized in Article VIII, section (9), shall be 
        accepted by the state and its subdivisions to permit 
        installation and use of industrialized/modular buildings.  
        Further, the noncompacting state agrees that by legislation or 
        regulation, and appropriate enforcement by uniform 
        administrative procedures, the noncompacting state requires all 
        industrialized/modular building manufacturers within that state 
        to comply with the model rules and regulations for 
        industrialized/modular buildings. 
           (4) "State" means a state of the United States, territory 
        or possession of the United States, the District of Columbia, or 
        the Commonwealth of Puerto Rico. 
           (5) "Uniform administrative procedures" means the 
        procedures adopted by the commission (after consideration of any 
        recommendations from the rules development committee) which 
        state and local officials, and other parties, in one state, will 
        utilize to assure state and local officials, and other parties, 
        in other states, of the substantial compliance of 
        industrialized/modular building construction with the 
        construction standard of requirements of such other states; to 
        assess the adequacy of building systems; and to verify and 
        assure the competency and performance of evaluation and 
        inspection agencies. 
           (6) "Model rules and regulations for industrialized/modular 
        buildings" means the construction standards adopted by the 
        commission (after consideration of any recommendations from the 
        rules development committee) which govern the design, 
        manufacture, handling, storage, delivery and installation of 
        industrialized/modular buildings and building components.  The 
        construction standards and any amendments thereof shall conform 
        insofar as practicable to model building codes and referenced 
        standards generally accepted and in use throughout the United 
        States. 
                                  ARTICLE III
                             CREATION OF COMMISSION 
           The compacting states hereby create the Interstate 
        Industrialized/Modular Buildings Commission, hereinafter called 
        commission.  Said commission shall be a body corporate of each 
        compacting state and an agency thereof.  The commission shall 
        have all the powers and duties set forth herein and such 
        additional powers as may be conferred upon it by subsequent 
        action of the respective legislatures of the compacting states. 
                                   ARTICLE IV
                           SELECTION OF COMMISSIONERS
           The commission shall be selected as follows.  As each state 
        becomes a compacting state, one resident shall be appointed as 
        commissioner.  The commissioner shall be selected by the 
        governor of the compacting state, being designated from the 
        state agency charged with regulating industrialized/modular 
        buildings or, if such state agency does not exist, being 
        designated from among those building officials with the most 
        appropriate responsibilities in the state.  The commissioner may 
        designate another official as an alternate to act on behalf of 
        the commissioner at commission meetings which the commissioner 
        is unable to attend. 
           Each state commissioner shall be appointed, suspended, or 
        removed and shall serve subject to and in accordance with the 
        laws of the state which said commissioner represents; and each 
        vacancy occurring shall be filled in accordance with the laws of 
        the state wherein the vacancy exists. 
           When For every three state commissioners that have been 
        appointed in the manner described, those state commissioners 
        shall select one additional commissioner who shall be a 
        representative of manufacturers of industrial- residential- or 
        commercial-use industrialized/modular buildings.  When For every 
        six state commissioners that have been appointed in the manner 
        described, the state commissioners shall select a second one 
        additional commissioner who shall be a representative of 
        consumers of industrialized/modular buildings.  With each 
        addition of three state commissioners, the state commissioners 
        shall appoint one additional representative commissioner, 
        alternating between a representative of manufacturers of 
        industrialized/modular buildings and consumers of 
        industrialized/modular buildings.  The ratio between state 
        commissioners and representative commissioners shall be three to 
        one.  In the event states withdraw from the compact or, for any 
        other reason, the number of state commissioners is reduced, the 
        state commissioners shall remove the last added representative 
        commissioner as necessary to maintain a the ratio of state 
        commissioners to representative commissioners of three to 
        one described herein. 
           Upon a majority vote of the state commissioners, the state 
        commissioners may remove, fill a vacancy created by, or replace 
        any representative commissioner, provided that any replacement 
        is made from the same representative group and a three to one 
        ratio the ratio described herein is maintained.  Unless provided 
        otherwise, the representative commissioners have the same 
        authority and responsibility as the state commissioners. 
           In addition, the commission may have as a member one 
        commissioner representing the United States government if 
        federal law authorizes such representation.  Such commissioner 
        shall not vote on matters before the commission.  Such 
        commission commissioner shall be appointed by the President of 
        the United States, or in such other manner as may be provided by 
        Congress. 
                                   ARTICLE V
                                     VOTING
           Each commissioner (except the commissioner representing the 
        United States government) shall be entitled to one vote on the 
        commission.  A majority of the commissioners shall constitute a 
        quorum for the transaction of business.  Any business transacted 
        at any meeting of the commission must be by affirmative vote of 
        a majority of the quorum present and voting. 
                                   ARTICLE VI
                          ORGANIZATION AND MANAGEMENT
           The commission shall elect annually, from among its 
        members, a chairman, a vice chairman and a treasurer.  The 
        commission shall also select a secretariat, which shall provide 
        an individual who shall serve as secretary of the commission. 
        The commission shall fix and determine the duties and 
        compensation of the secretariat.  The commissioners shall serve 
        without compensation, but shall be reimbursed for their actual 
        and necessary expenses from the funds of the commission. 
           The commission shall adopt a seal. 
           The commission shall adopt bylaws, rules, and regulations 
        for the conduct of its business, and shall have the power to 
        amend and rescind these bylaws, rules, and regulations. 
           The commission shall establish and maintain an office at 
        the same location as the office maintained by the secretariat 
        for the transaction of its business and may meet at any time, 
        but in any event must meet at least once a year.  The chairman 
        may call additional meetings and upon the request of a majority 
        of the commissioners of three or more of the compacting states 
        shall call an additional meeting.  
           The commission annually shall make the governor and 
        legislature of each compacting state a report covering its 
        activities for the preceding year.  Any donation or grant 
        accepted by the commission or services borrowed shall be 
        reported in the annual report of the commission and shall 
        include the nature, amount and conditions, if any, of the 
        donation, gift, grant or services borrowed and the identity of 
        the donor or lender.  The commission may make additional reports 
        as it may deem desirable. 
                                  ARTICLE VII
                                   COMMITTEES
           The commission will establish such committees as it deems 
        necessary, including, but not limited to, the following: 
           (1) An executive committee which functions when the full 
        commission is not meeting, as provided in the bylaws of the 
        commission.  The executive committee will ensure that proper 
        procedures are followed in implementing the commission's 
        programs and in carrying out the activities of the compact.  The 
        executive committee shall be elected by vote of the commission.  
        It shall be comprised of at least three and no more than nine 
        commissioners, selected from those commissioners who are 
        representatives of the governor of their respective state the 
        state commissioners and one member of the industry commissioners 
        and one member of the consumer commissioners. 
           (2) A rules development committee appointed by the 
        commission.  The committee shall be consensus-based and consist 
        of not less than seven nor more than 21 members.  Committee 
        members will include state building regulatory officials; 
        manufacturers of industrialized/modular buildings; private, 
        third-party inspection agencies; and consumers.  This committee 
        may recommend procedures which state and local officials, and 
        other parties, in one state, may utilize to assure state and 
        local officials, and other parties, in other states, of the 
        substantial compliance of industrialized/modular building 
        construction with the construction standard requirements of such 
        other states; to assess the adequacy of building systems; and to 
        verify and assure the competency and performance of evaluation 
        and inspection agencies.  This committee may also recommend 
        construction standards for the design, manufacture, handling, 
        storage, delivery and installation of industrialized/modular 
        buildings and building components.  The committee will submit 
        its recommendations to the commission, for the commission's 
        consideration in adopting and amending the uniform 
        administrative procedures and the model rules and regulations 
        for industrialized/modular buildings.  The committee may also 
        review the regulatory programs of the compacting states to 
        determine whether those programs are consistent with the uniform 
        administrative procedures or the model rules and regulations for 
        industrialized/modular buildings and may make recommendations 
        concerning the states' programs to the commission.  In carrying 
        out its functions, the rules committee may conduct public 
        hearings and otherwise solicit public input and comment. 
           (3) Any other advisory, coordinating or technical 
        committees, membership on which may include private persons, 
        public officials, associations or organizations.  Such 
        committees may consider any matter of concern to the commission. 
           (4) Such additional committees as the commission's bylaws 
        may provide. 
                                  ARTICLE VIII
                              POWER AND AUTHORITY
           In addition to the powers conferred elsewhere in this 
        compact, the commission shall have power to: 
           (1) Collect, analyze and disseminate information relating 
        to industrialized/modular buildings. 
           (2) Undertake studies of existing laws, codes, rules and 
        regulations, and administrative practices of the states relating 
        to industrialized/modular buildings. 
           (3) Assist and support committees and organizations which 
        promulgate, maintain and update model codes or recommendations 
        for uniform administrative procedures or model rules and 
        regulations for industrialized/modular buildings. 
           (4) Adopt and amend uniform administrative procedures and 
        model rules and regulations for industrialized/modular buildings.
           (5) Make recommendations to compacting states for the 
        purpose of bringing such states' laws, codes, rules and 
        regulations and administrative practices into conformance with 
        the uniform administrative procedures or the model rules and 
        regulations for industrialized/modular buildings, provided that 
        such recommendations shall be made to the appropriate state 
        agency with due consideration for the desirability of uniformity 
        while also giving appropriate consideration to special 
        circumstances which may justify variations necessary to meet 
        unique local conditions. 
           (6) Assist and support the compacting states with 
        monitoring of plan review programs and inspection programs, 
        which will assure that the compacting states have the benefit of 
        uniform industrialized/modular building plan review and 
        inspection programs. 
           (7) Assist and support organizations which train state and 
        local government and other program personnel in the use of 
        uniform industrialized/modular building plan review and 
        inspection programs. 
           (8) Encourage and promote coordination of state regulatory 
        action relating to manufacturers, public or private inspection 
        programs. 
           (9) Create and sell labels to be affixed to 
        industrialized/modular building units, constructed in or 
        regulated by compacting states, where such labels will evidence 
        compliance with the model rules and regulations for 
        industrialized/modular buildings, enforced in accordance with 
        the uniform administrative procedures.  The commission may use 
        receipts from the sale of labels to help defray the operating 
        expenses of the commission. 
           (10) Assist and support compacting states' investigations 
        into and resolutions of consumer complaints which relate to 
        industrialized/modular buildings constructed in one compacting 
        state and sited in another compacting state. 
           (11) Borrow, accept or contract for the services of 
        personnel from any state or the United States or any subdivision 
        or agency thereof, from any interstate agency, or from any 
        institution, association, person, firm or corporation. 
           (12) Accept for any of its purposes and functions under 
        this compact any and all donations, and grants of money, 
        equipment, supplies, materials and services (conditional or 
        otherwise) from any state or the United States or any 
        subdivision or agency thereof, from any interstate agency, or 
        from any institution, person, firm or corporation, and may 
        receive, utilize and dispose of the same. 
           (13) Establish and maintain such facilities as may be 
        necessary for the transacting of its business.  The commission 
        may acquire, hold, and convey real and personal property and any 
        interest therein. 
           (14) Enter into contracts and agreements, including but not 
        limited to, interim reciprocal agreements with noncompacting 
        states. 
                                   ARTICLE IX
                                    FINANCE
           The commission shall submit to the governor or designated 
        officer or officers of each compacting state a budget of its 
        estimated expenditures for such period as may be required by the 
        laws of that state for presentation to the legislature thereof. 
           Each of the commission's budgets of estimated expenditures 
        shall contain specific recommendations of the amounts to be 
        appropriated by each of the compacting states.  The total amount 
        of appropriations requested under any such budget shall be 
        apportioned among the compacting states as follows:  one-half in 
        equal shares; one-fourth among the compacting states in 
        accordance with the ratio of their populations to the total 
        population of the compacting states, based on the last decimal 
        federal census; and one-fourth among the compacting states in 
        accordance with the ratio of industrialized/modular building 
        units manufactured in each state to the total of all units 
        manufactured in all of the compacting states. 
           The commission shall not pledge the credit of any 
        compacting state.  The commission may meet any of its 
        obligations in whole or in part with funds available to it by 
        donations, grants, or sale of labels:  provided that the 
        commission takes specific action setting aside such funds prior 
        to incurring any obligation to be met in whole or in part in 
        such manner.  Except where the commission makes use of funds 
        available to it by donations, grants or sale of labels, the 
        commission shall not incur any obligation prior to the allotment 
        of funds by the compacting states adequate to meet the same. 
           The commission shall keep accurate accounts of all receipts 
        and disbursements.  The receipts and disbursements of the 
        commission shall be subject to the audit and accounting 
        procedures established under its bylaws.  All receipts and 
        disbursements of funds handled by the commission shall be 
        audited yearly by a certified or licensed public accountant and 
        the report of the audit shall be included in and become part of 
        the annual report of the commission. 
           The accounts of the commission shall be open at any 
        reasonable time for inspection by duly constituted officers of 
        the compacting states and any person authorized by the 
        commission. 
           Nothing contained in this article shall be construed to 
        prevent commission compliance relating to audit or inspection of 
        accounts by or on behalf of any government contributing to the 
        support of the commission. 
                                   ARTICLE X
                        ENTRY INTO FORCE AND WITHDRAWAL 
           This compact shall enter into force when enacted into law 
        by any three states.  Thereafter, this compact shall become 
        effective as to any other state upon its enactment thereof.  The 
        commission shall arrange for notification of all compacting 
        states whenever there is a new enactment of the compact. 
           Any compacting state may withdraw from this compact by 
        enacting a statute repealing the same.  No withdrawal shall 
        affect any liability already incurred by or chargeable to a 
        compacting state prior to the time of such withdrawal. 
                                   ARTICLE XI
                                  RECIPROCITY 
           If the commission determines that the standards for 
        industrialized/modular buildings prescribed by statute, rule or 
        regulation of compacting state are at least equal to the 
        commission's model rules and regulations for 
        industrialized/modular buildings, and that such state standards 
        are enforced by the compacting state in accordance with the 
        uniform administrative procedures, industrialized/modular 
        buildings approved by such a compacting state shall be deemed to 
        have been approved by all the compacting states for placement in 
        those states in accordance with procedures prescribed by the 
        commission. 
                                  ARTICLE XII
                     EFFECT ON OTHER LAWS AND JURISDICTION 
           Nothing in this compact shall be construed to: 
           (1) Withdraw or limit the jurisdiction of any state or 
        local court or administrative officer or body with respect to 
        any person, corporation or other entity or subject matter, 
        except to the extent that such jurisdiction pursuant to this 
        compact, is expressly conferred upon another agency or body. 
           (2) Supersede or limit the jurisdiction of any court of the 
        United States. 
                                  ARTICLE XIII 
                         CONSTRUCTION AND SEVERABILITY 
           This compact shall be liberally construed so as to 
        effectuate the purposes thereof.  The provisions of this compact 
        shall be severable and if any phrase, clause, sentence or 
        provision of this compact is declared to be contrary to the 
        constitution of any state or of the United States or the 
        applicability thereof to any government, agency, person or 
        circumstances is held invalid, the validity of the remainder of 
        this compact and the applicability thereof to any government, 
        agency, person or circumstance shall not be affected thereby.  
        If this compact shall be held contrary to the constitution of 
        any state participating therein, the compact shall remain in 
        full force and effect as to the remaining party states and in 
        full force and effect as to the state affected as to all 
        severable matters. 
                                   ARTICLE 5 
                                DEBT COLLECTION 
           Section 1.  Minnesota Statutes 1994, section 8.16, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [SUBPOENAS.] The attorney general may in any 
        county of the state subpoena and require the production of any 
        records relating to the location of a debtor or the assets of a 
        debtor, as that term is defined in section 16D.02, subdivision 
        4.  Subpoenas may be issued only for records that are relevant 
        to an investigation related to debt collection and exclude the 
        power to subpoena personal appearance of witnesses unless the 
        attorney general is so authorized by other statute or court rule.
           Sec. 2.  Minnesota Statutes 1994, section 16A.72, is 
        amended to read: 
           16A.72 [INCOME CREDITED TO GENERAL FUND; EXCEPTIONS.] 
           All income, including fees or receipts of any nature, shall 
        be credited to the general fund, except:  
           (1) federal aid; 
           (2) contributions, or reimbursements received for any 
        account of any division or department for which an appropriation 
        is made by law; 
           (3) income to the University of Minnesota; 
           (4) income to revolving funds now established in 
        institutions under the control of the commissioners of 
        corrections or human services; 
           (5) investment earnings resulting from the master lease 
        program, except that the amount credited to another fund or 
        account may not exceed the amount of the additional expense 
        incurred by that fund or account through participation in the 
        master lease program; 
           (6) receipts from the operation of patients' and inmates' 
        stores and vending machines, which shall be deposited in the 
        social welfare fund in each institution for the benefit of the 
        patients and inmates; 
           (7) money received in payment for services of inmate labor 
        employed in the industries carried on in the state correctional 
        facilities which receipts shall be credited to the current 
        expense fund of those facilities; 
           (8) as provided in sections 16B.57 and 85.22; 
           (9) income to the Minnesota historical society; or 
           (10) the percent of income collected by a private 
        collection agency and retained by the collection agency as its 
        collection fee; or 
           (11) as otherwise provided by law. 
           Sec. 3.  Minnesota Statutes 1994, section 16D.02, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REFERRING AGENCY.] "Referring agency" means a 
        state agency, the University of Minnesota, or a court that has 
        entered into a debt qualification plan with the commissioner to 
        refer debts to the commissioner for collection. 
           Sec. 4.  Minnesota Statutes 1994, section 16D.02, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [ENTERPRISE.] "Enterprise" means the Minnesota 
        collection enterprise, a separate unit established to carry out 
        the provisions of this chapter, pursuant to the commissioner's 
        authority to contract with the commissioner of revenue for 
        collection services under section 16D.04, subdivision 1. 
           Sec. 5.  Minnesota Statutes 1994, section 16D.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES.] The commissioner shall provide 
        services to the state and its agencies to collect debts owed the 
        state.  The commissioner is not a collection agency as defined 
        by section 332.31, subdivision 3, and is not licensed, bonded, 
        or regulated by the commissioner of commerce under sections 
        332.31 to 332.35 or 332.38 to 332.45.  The commissioner is 
        subject to section 332.37, except clause (9) or (10).  The 
        commissioner may contract with the commissioner of revenue for 
        collection services, and may delegate to the commissioner of 
        revenue any of the commissioner's duties and powers under this 
        chapter.  Debts referred to the commissioner of revenue for 
        collection under this section or section 256.9792 may in turn be 
        referred by the commissioner of revenue to the enterprise.  An 
        audited financial statement may not be required as a condition 
        of debt placement with a private agency if the private agency:  
        (1) has errors and omissions coverage under a professional 
        liability policy in an amount of at least $1,000,000; or (2) has 
        a fidelity bond to cover actions of its employees, in an amount 
        of at least $100,000.  In cases of debts referred under section 
        256.9792, the provisions of this chapter and section 256.9792 
        apply to the extent they are not in conflict.  If they are in 
        conflict, the provisions of section 256.9792 control.  For 
        purposes of this chapter, the referring agency for such debts 
        remains the department of human services. 
           Sec. 6.  Minnesota Statutes 1994, section 16D.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SERVICES.] The commissioner shall provide 
        collection services for a state agency, and may provide for 
        collection services for the University of Minnesota or a court, 
        in accordance with the terms and conditions of a signed debt 
        qualification plan.  
           Sec. 7.  Minnesota Statutes 1994, section 16D.06, is 
        amended to read: 
           16D.06 [DEBTOR INFORMATION.] 
           Subdivision 1.  [ACCESS TO GOVERNMENT DATA NOT PUBLIC.] 
        Notwithstanding chapter 13 or any other state law classifying or 
        restricting access to government data, upon request from the 
        commissioner or the attorney general, state agencies, political 
        subdivisions, and statewide systems shall disseminate not public 
        data to the commissioner or the attorney general for the sole 
        purpose of collecting debt.  Not public data disseminated under 
        this subdivision is limited to financial data of the debtor or 
        data related to the location of the debtor or the assets of the 
        debtor. 
           Subd. 2.  [DISCLOSURE OF DATA.] Data received, collected, 
        created, or maintained by the commissioner or the attorney 
        general to collect debts are classified as private data on 
        individuals under section 13.02, subdivision 12, or nonpublic 
        data under section 13.02, subdivision 9.  The commissioner or 
        the attorney general may disclose not public data: 
           (1) under section 13.05; 
           (2) under court order; 
           (3) under a statute specifically authorizing access to the 
        not public data; 
           (4) to provide notices required or permitted by statute; 
           (5) to an agent of the commissioner, including a law 
        enforcement person, attorney, or investigator acting for the 
        commissioner in the investigation or prosecution of a criminal 
        or civil proceeding relating to collection of a debt; 
           (6) to report names of debtors, amount of debt, date of 
        debt, and the agency to whom debt is owed to credit bureaus and 
        private collection agencies under contract with the 
        commissioner; and 
           (7) when necessary to locate the debtor, locate the assets 
        of the debtor, or to enforce or implement the collection of a 
        debt; and 
           (8) to the commissioner of revenue for tax administration 
        purposes. 
           The commissioner and the attorney general may not disclose 
        data that is not public to a private collection agency or other 
        entity with whom the commissioner has contracted under section 
        16D.04, subdivision 4, unless disclosure is otherwise authorized 
        by law. 
           Sec. 8.  Minnesota Statutes 1994, section 16D.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [POWERS.] In addition to the collection remedies 
        available to private collection agencies in this state, the 
        commissioner, with legal assistance from the attorney general, 
        may utilize any statutory authority granted to a referring 
        agency for purposes of collecting debt owed to that referring 
        agency.  The commissioner may also use the tax collection 
        remedies of the commissioner of revenue in sections 270.06, 
        clauses (7) and (17), excluding the power to subpoena witnesses; 
        270.66; 270.69, excluding subdivisions 7 and 13; 270.70, 
        excluding subdivision 14; 270.7001 to 270.72; and 290.92, 
        subdivision 23, except that a continuous wage levy under section 
        290.92, subdivision 23, is only effective for 70 days, unless no 
        competing wage garnishments, executions, or levies are served 
        within the 70-day period, in which case a wage levy is 
        continuous until a competing garnishment, execution, or levy is 
        served in the second or a succeeding 70-day period, in which 
        case a continuous wage levy is effective for the remainder of 
        that period.  A debtor who qualifies for cancellation of the 
        collection penalty under section 16D.11, subdivision 3, clause 
        (1), can apply to the commissioner for reduction or release of a 
        continuous wage levy, if the debtor establishes that the debtor 
        needs all or a portion of the wages being levied upon to pay for 
        essential living expenses, such as food, clothing, shelter, 
        medical care, or expenses necessary for maintaining employment.  
        The commissioner's determination not to reduce or release a 
        continuous wage levy is appealable to district court.  The word 
        "tax" or "taxes" when used in the tax collection statutes listed 
        in this subdivision also means debts referred under this 
        chapter.  For debts other than state taxes or child support, 
        before any of the tax collection remedies listed in this 
        subdivision can be used, except for the remedies in section 
        270.06, clauses (7) and (17), if the referring agency has not 
        already obtained a judgment or filed a lien, the commissioner 
        must first obtain a judgment against the debtor.  
           Sec. 9.  [16D.11] [COLLECTION PENALTY.] 
           Subdivision 1.  [IMPOSITION.] As determined by the 
        commissioner, a penalty shall be added to the debts referred to 
        the commissioner or private collection agency for collection.  
        The penalty is collectible by the commissioner or private agency 
        from the debtor at the same time and in the same manner as the 
        referred debt.  The referring agency shall advise the debtor of 
        the penalty under this section and the debtor's right to 
        cancellation of the penalty under subdivision 3 at the time the 
        agency sends notice to the debtor under section 16D.07.  If the 
        commissioner or private agency collects an amount less than the 
        total due, the payment is applied proportionally to the penalty 
        and the underlying debt.  Penalties collected by the 
        commissioner under this subdivision or retained under 
        subdivision 6 shall be deposited in the general fund as 
        nondedicated receipts.  Penalties collected by private agencies 
        are appropriated to the referring agency to pay the collection 
        fees charged by the private agency.  Penalty collections in 
        excess of collection agency fees must be deposited in the 
        general fund as nondedicated receipts.  
           Subd. 2.  [COMPUTATION.] Beginning July 1, 1995, at the 
        time a debt is referred, the amount of the penalty is equal to 
        15 percent of the debt, or 25 percent of the debt remaining 
        unpaid if the commissioner or private collection agency has to 
        take enforced collection action by serving a summons and 
        complaint on or entering judgment against the debtor, or by 
        utilizing any of the remedies authorized under section 16D.08, 
        subdivision 2, except for the remedies in sections 270.06, 
        clause (7), and 270.66 or when referred by the commissioner for 
        additional collection activity by a private collection agency.  
        If, after referral of a debt to a private collection agency, the 
        debtor requests cancellation of the penalty under subdivision 3, 
        the debt must be returned to the commissioner for resolution of 
        the request. 
           Subd. 3.  [CANCELLATION.] The penalty imposed under 
        subdivision 1 shall be canceled and subtracted from the amount 
        due if: 
           (1) the debtor's household income as defined in section 
        290A.03, subdivision 5, excluding the exemption subtractions in 
        subdivision 3, paragraph (3) of that section, for the 12 months 
        preceding the date of referral is less than twice the annual 
        federal poverty guideline under United States Code, title 42, 
        section 9902, subsection (2); 
           (2) within 60 days after the first contact with the debtor 
        by the enterprise or collection agency, the debtor establishes 
        reasonable cause for the failure to pay the debt prior to 
        referral of the debt to the enterprise; 
           (3) a good faith dispute as to the legitimacy or the amount 
        of the debt is made, and payment is remitted or a payment 
        agreement is entered into within 30 days after resolution of the 
        dispute; 
           (4) good faith litigation occurs and the debtor's position 
        is substantially justified, and if the debtor does not totally 
        prevail, the debt is paid or a payment agreement is entered into 
        within 30 days after the judgment becomes final and 
        nonappealable; or 
           (5) penalties have been added by the referring agency and 
        are included in the amount of the referred debt. 
           Subd. 4.  [APPEAL.] Decisions of the commissioner denying 
        an application to cancel the penalty under subdivision 3 are 
        subject to the contested case procedure under chapter 14. 
           Subd. 5.  [REFUND.] If a penalty is collected and then 
        canceled, the amount of the penalty shall be refunded to the 
        debtor within 30 days.  The amount necessary to pay the refunds 
        is annually appropriated to the commissioner. 
           Subd. 6.  [CHARGE TO REFERRING AGENCY.] If the penalty is 
        canceled under subdivision 3, an amount equal to the penalty is 
        retained by the commissioner from the debt collected, and is 
        accounted for and subject to the same provisions of this chapter 
        as if the penalty had been collected from the debtor. 
           Subd. 7.  [ADJUSTMENT OF RATE.] By June 1 of each year, the 
        commissioner shall determine the rate of the penalty for debts 
        referred to the enterprise during the next fiscal year.  The 
        rate is a percentage of the debts in an amount that most nearly 
        equals the costs of the enterprise necessary to process and 
        collect referred debts under this chapter.  In no event shall 
        the rate of the penalty when a debt is first referred exceed 
        three-fifths of the maximum penalty, and in no event shall the 
        rate of the maximum penalty exceed 25 percent of the debt.  
        Determination of the rate of the penalty under this section is 
        not rulemaking under chapter 14, and is not subject to the fee 
        setting requirements of section 16A.1285. 
           Sec. 10.  [16D.12] [PAYMENT OF COLLECTION AGENCY FEES.] 
           Unless otherwise expressly prohibited by law, a state 
        agency may pay for the services of a state or private collection 
        agency from the money collected.  The portion of the money 
        collected which must be paid to the collection agency as its 
        collection fee is appropriated from the fund to which the 
        collected money is due. 
           Sec. 11.  [16D.13] [INTEREST.] 
           Subdivision 1.  [AUTHORITY.] Unless otherwise provided by 
        contract out of which the debt arises or by state or federal 
        law, a state agency shall charge simple interest on debts owed 
        to the state at the rate provided in subdivision 2 if notice has 
        been given in accordance with this subdivision.  Interest 
        charged under this section begins to accrue on the 30th calendar 
        day following the state agency's first written demand for 
        payment that includes notification to the debtor that interest 
        will begin to accrue on the debt in accordance with this section.
           Subd. 2.  [COMPUTATION.] Notwithstanding chapter 334, the 
        rate of interest is the rate determined by the state court 
        administrator under section 549.09, subdivision 1, paragraph (c).
           Subd. 3.  [EXCLUSION.] A state agency may not charge 
        interest under this section on overpayments of assistance 
        benefits under sections 256.031 to 256.0361, 256.72 to 256.87, 
        chapters 256D and 256I, or the federal food stamp program.  
        Notwithstanding this prohibition, any debts that have been 
        reduced to judgment under these programs are subject to the 
        interest charges provided under section 549.09. 
           Sec. 12.  [16D.14] [VENUE.] 
           Subdivision 1.  [AUTHORIZATION.] The commissioner or the 
        attorney general may bring an action to recover debts owed to 
        the state in Ramsey county district court or Ramsey county 
        conciliation court at the discretion of the state.  In order to 
        bring a cause of action under this section in any county other 
        than the county where the debtor resides or where the cause of 
        action arose, the commissioner or the attorney general must 
        notify the debtor as provided in subdivisions 2 to 4, unless 
        that venue is authorized by other law. 
           Subd. 2.  [CONCILIATION COURT; CLAIMS FOR $2,500 OR 
        LESS.] (a) Before bringing a conciliation court action for a 
        claim for $2,500 or less under this section in any county other 
        than where the debtor resides or where the cause of action 
        arose, the commissioner or the attorney general shall send a 
        form by first class mail to the debtor's last known address 
        notifying the debtor of the intent to bring an action in Ramsey 
        county.  The commissioner or attorney general must enclose a 
        form for the debtor to use to request that the action not be 
        brought in Ramsey county and a self-addressed, postage paid 
        envelope.  The form must advise the debtor of the right to 
        request that the action not be brought in Ramsey county and that 
        the debtor has 30 days from the date of the form to make this 
        request. 
           (b) If the debtor timely returns the form requesting the 
        action not be brought in Ramsey county, the commissioner or 
        attorney general may only file the action in the county of the 
        debtor's residence, the county where the cause of action arose, 
        or as provided by other law.  The commissioner or attorney 
        general shall notify the debtor of the action taken.  If the 
        debtor does not timely return the form, venue is as chosen by 
        the commissioner or attorney general as authorized under this 
        section. 
           (c) If a judgment is obtained in Ramsey county conciliation 
        court when the form was sent by first class mail under this 
        subdivision and the debtor reasonably demonstrates that the 
        debtor did not reside at the address where the form was sent or 
        that the debtor did not receive the form, the commissioner or 
        the attorney general shall vacate the judgment without prejudice 
        and return any funds collected as a result of enforcement of the 
        judgment.  Evidence of the debtor's correct address include, but 
        are not limited to, a driver's license, homestead declaration, 
        school registration, utility bills, or a lease or rental 
        agreement. 
           Subd. 3.  [CONCILIATION COURT CLAIMS EXCEEDING $2,500.] (a) 
        In order to bring a conciliation court claim that exceeds $2,500 
        under this section in a county other than where the debtor 
        resides or where the cause of action arose, the commissioner or 
        the attorney general shall serve with the conciliation court 
        claim a change of venue form for the debtor to use to request 
        that venue be changed and a self-addressed, postage paid return 
        envelope.  This form must advise the debtor that the form must 
        be returned within 30 days of the date of service or venue will 
        remain in Ramsey county. 
           (b) If the debtor timely returns the change of venue form 
        requesting a change of venue, the commissioner or attorney 
        general shall change the venue of the action to the county of 
        the debtor's residence, the county where the cause of action 
        arose, as provided by other law, or dismiss the action.  The 
        commissioner or attorney general must notify the debtor of the 
        action taken.  If the debtor does not timely return the form, 
        venue is as chosen by the commissioner or attorney general as 
        authorized under this section.  The commissioner or the attorney 
        general shall file the signed return receipt card or the proof 
        of service with the court. 
           Subd. 4.  [DISTRICT COURT.] (a) In order to bring a 
        district court action under this section in any county other 
        than where the debtor resides or where the cause of action 
        arose, the commissioner or attorney general shall serve the 
        change of venue form with the summons and complaint or petition 
        commencing the collection action.  Two copies of the form must 
        be served along with a self-addressed, postage paid return 
        envelope.  The form must advise the debtor that the form must be 
        returned within 20 days of the date of service or venue will 
        remain in Ramsey county.  If the debtor timely returns the 
        change of venue form, the time to answer the summons and 
        complaint or petition runs from the date of debtor's request for 
        change of venue. 
           (b) If the debtor timely returns the change of venue form 
        requesting that the action not be brought in Ramsey county, the 
        commissioner or attorney general shall change the venue of the 
        action to the county of the debtor's residence, the county where 
        the cause of action arose, as provided by other law, or dismiss 
        the action.  The commissioner or attorney general shall notify 
        the debtor of the action taken.  If the debtor is served the 
        form to change venue along with the district court summons and 
        complaint or petition, in accordance with court rules, but does 
        not return the form within the statutory timelines, venue is as 
        chosen by the commissioner or attorney general as authorized 
        under this section.  The commissioner or attorney general shall 
        file the proof of service along with the summons and complaint 
        or petition commencing the lawsuit. 
           Subd. 5.  [FEES.] No court filing fees, docketing fees, or 
        release of judgment fees may be assessed against the state for 
        collection actions filed under this chapter. 
           Sec. 13.  [16D.15] [COMPROMISE OF DEBT.] 
           Unless expressly prohibited by other federal or state law, 
        a state agency may compromise debts owed to the state, whether 
        reduced to judgment or not, where the state agency determines 
        that it is in the best interests of the state to do so. 
           Sec. 14.  [16D.16] [SETOFFS.] 
           Subdivision 1.  [AUTHORIZATION.] The commissioner or a 
        state agency may automatically deduct the amount of a debt owed 
        to the state from any state payment due to the debtor, except 
        tax refunds, earned income tax credit, child care tax credit, 
        prejudgment debts of $5,000 or less, funds exempt under section 
        550.37, or funds owed an individual who receives assistance 
        under the provisions of chapter 256 are not subject to setoff 
        under this chapter.  If a debtor has entered into a written 
        payment plan with respect to payment of a specified debt, the 
        right of setoff may not be used to satisfy that debt.  
        Notwithstanding section 181.79, the state may deduct from the 
        wages due or earned by a state employee to collect a debt, 
        subject to the limitations in section 571.922. 
           Subd. 2.  [NOTICE AND HEARING.] Before setoff, the 
        commissioner or state agency shall mail written notice by 
        certified mail to the debtor, addressed to the debtor's last 
        known address, that the commissioner or state agency intends to 
        set off a debt owed to the state by the debtor against future 
        payments due the debtor from the state.  For debts owed to the 
        state that have not been reduced to judgment, if no opportunity 
        to be heard or administrative appeal process has yet been made 
        available to the debtor to contest the validity or accuracy of 
        the debt, before setoff for a prejudgment debt, the notice to 
        the debtor must advise that the debtor has a right to make a 
        written request for a contested case hearing on the validity of 
        the debt or the right to setoff.  The debtor has 30 days from 
        the date of that notice to make a written request for a 
        contested case hearing to contest the validity of the debt or 
        the right to setoff.  The debtor's request must state the 
        debtor's reasons for contesting the debt or the right to 
        setoff.  If the commissioner or state agency desires to pursue 
        the right to setoff following receipt of the debtor's request 
        for a hearing, the commissioner or state agency shall schedule a 
        contested case hearing within 30 days of the receipt of the 
        request for the hearing.  If the commissioner or state agency 
        decides not to pursue the right to setoff, the debtor must be 
        notified of that decision. 
           Sec. 15.  Minnesota Statutes 1994, section 491A.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REPRESENTATION.] (a) A corporation, partnership, 
        limited liability company, sole proprietorship, or association 
        may be represented in conciliation court by an officer, manager, 
        or partner or an agent in the case of a condominium, 
        cooperative, or townhouse association, or may appoint a natural 
        person who is an employee or commercial property manager to 
        appear on its behalf or settle a claim in conciliation 
        court.  The state or a political subdivision of the state may be 
        represented in conciliation court by an employee of the 
        pertinent governmental unit without a written authorization.  
        This Representation under this subdivision does not constitute 
        the practice of law for purposes of section 481.02, subdivision 
        8.  In the case of an officer, employee, commercial property 
        manager, or agent of a condominium, cooperative, or townhouse 
        association, an authorized power of attorney, corporate 
        authorization resolution, corporate bylaw, or other evidence of 
        authority acceptable to the court must be filed with the claim 
        or presented at the hearing.  This subdivision also applies to 
        appearances in district court by a corporation or limited 
        liability company with five or fewer shareholders or members and 
        to any condominium, cooperative, or townhouse association, if 
        the action was removed from conciliation court. 
           (b) "Commercial property manager" means a corporation, 
        partnership, or limited liability company or its employees who 
        are hired by the owner of commercial real estate to perform a 
        broad range of administrative duties at the property including 
        tenant relations matters, leasing, repairs, maintenance, the 
        negotiation and resolution of tenant disputes, and related 
        matters.  In order to appear in conciliation court, a property 
        manager's employees must possess a real estate license under 
        section 82.20 and be authorized by the owner of the property to 
        settle all disputes with tenants and others within the 
        jurisdictional limits of conciliation court. 
           (c) A commercial property manager who is appointed to 
        settle a claim in conciliation court may not charge or collect a 
        separate fee for services rendered under paragraph (a). 
           Sec. 16.  [PILOT PROGRAM.] 
           The commissioner of finance shall initiate a pilot program 
        to compare effectiveness and efficiencies of the Minnesota 
        collection enterprise and private collection agencies.  The 
        commissioner shall issue a request for proposals and place at 
        least $35,000,000 of state debt with private collection agencies 
        licensed by the commissioner of commerce under Minnesota 
        Statutes, chapter 332 no later than January 1, 1996.  For 
        purposes of conducting this pilot, at least one-half of the 
        private collection agencies selected must not be currently under 
        contract with the commissioner.  In placing debt with private 
        collection agencies, the commissioner must consider the 
        following factors in comparison to the enterprise:  age and size 
        of the debt, type of debt, and direct and indirect costs of 
        collecting the debt.  The commissioner shall report back to the 
        legislature by February 1, 1997. 
           Sec. 17.  [EFFECTIVE DATE.] 
           Sections 1, 3 to 7, 13, 15, and 16 are effective the day 
        following final enactment.  Section 8 is effective for debts 
        previously referred or referred on or after the day following 
        final enactment.  Section 9 is effective for debts referred on 
        or after July 1, 1995. 
           Presented to the governor May 30, 1995 
           Signed by the governor June 1, 1995, 2:10 p.m.

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