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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 111-S.F.No. 525 
                  An act relating to public administration; modifying 
                  ownership restrictions for privatization of capital 
                  intensive public services; providing for the nonpublic 
                  status of internal competitive proposals; amending 
                  Minnesota Statutes 1996, sections 13.37; 471A.02, 
                  subdivisions 6, 11, and 13; 471A.03, subdivision 3; 
                  and 471A.10. 
           Section 1.  Minnesota Statutes 1996, section 471A.02, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CAPITAL INTENSIVE PUBLIC SERVICES.] "Capital 
        intensive public services" means the prevention, control, and 
        abatement of water pollution through wastewater treatment 
        facilities as defined by section 115.71, subdivision 6, and the 
        furnishing of potable water.  Capital intensive public services 
        may be limited (1) to the acquisition, design and construction, 
        and ownership or (2) to the operation and maintenance, by the 
        private vendor of related facilities, but.  Capital intensive 
        public services does not include the furnishing of heating or 
        cooling energy. 
           Sec. 2.  Minnesota Statutes 1996, section 471A.02, 
        subdivision 11, is amended to read: 
           Subd. 11.  [RELATED FACILITIES.] "Related facilities" means 
        all real and personal property used by the private vendor in 
        furnishing capital intensive public services, excluding any 
        product of the related facilities, such as drinking water, 
        furnished under the service contract.  Related facilities may be 
        owned by the municipality or the private vendor or jointly by 
           Sec. 3.  Minnesota Statutes 1996, section 471A.02, 
        subdivision 13, is amended to read: 
           Subd. 13.  [SERVICE FEE.] "Service fee" means the payments 
        the municipality is required under the service contract to make, 
        or cause to be made, to the private vendor, including payments 
        made by third parties to the private vendor for products or 
        services and credited against payments the municipality would 
        otherwise have to make, or cause to be made, under the service 
        contract.  The capital cost component of the service fee may be 
        paid over the term of the service contract or in one or more 
        lump sum payments during the term.  
           Sec. 4.  Minnesota Statutes 1996, section 471A.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PROCUREMENT PROCEDURES.] The municipality may 
        agree under the service contract that the private vendor will 
        acquire and, construct, alter, repair, or maintain any and all 
        related facilities without compliance with any competitive 
        bidding requirements, provided (1) the municipality, or 
        municipalities if the related facilities furnish capital 
        intensive public services to more than one municipality, has in 
        the aggregate either no or no more than a 50 percent ownership 
        interest in the related facilities, and (2).  The municipality 
        enters may enter into the service contract only after requesting 
        from two or more private vendors proposals for the furnishing of 
        the capital intensive public services, under terms and 
        conditions the municipality determines to be fair and 
        reasonable.  After making the request and receiving any 
        proposals in response to the request, the municipality may 
        negotiate the service contract with any private vendor that 
        meets the requirements specified in that responds to the request 
        for proposals. 
           Sec. 5.  Minnesota Statutes 1996, section 471A.10, is 
        amended to read: 
           (a) Unless expressly provided therein, and except as 
        provided in this section, no state law, charter provision, or 
        ordinance of a municipality relating to public employees shall 
        apply to a person solely by reason of that person's employment 
        by a private vendor in connection with services rendered under a 
        service contract. 
           (b) A private vendor purchasing or leasing existing related 
        facilities from a municipality or operating or maintaining the 
        facility shall recognize all exclusive bargaining 
        representatives and existing labor agreements and those 
        agreements shall remain in force until they expire by their 
        terms.  Persons who are not employed by a municipality in a 
        related facility at the time of a lease or purchase of the 
        facility by the private vendor are not "public employees" within 
        the meaning of the public employees retirement act, chapter 353. 
        Persons employed by a municipality in a related facility at the 
        time of a lease or purchase of the facility by a private vendor 
        shall continue to be considered to be "public employees" within 
        the meaning of the public employees retirement act, chapter 353, 
        but may elect to terminate their participation in the public 
        employees retirement association as provided in this section.  
        Each such employee may exercise the election annually on the 
        anniversary of the person's initial employment by the 
        municipality.  An employee electing to terminate participation 
        in the association is entitled to benefits that the employee 
        would be entitled to if terminating public employment and may 
        participate in a retirement program established by the private 
           Sec. 6.  Minnesota Statutes 1996, section 13.37, is amended 
        to read: 
           13.37 [GENERAL NONPUBLIC DATA.] 
           Subdivision 1.  [DEFINITIONS.] As used in this section, the 
        following terms have the meanings given them. 
           (a) "Security information" means government data the 
        disclosure of which would be likely to substantially jeopardize 
        the security of information, possessions, individuals or 
        property against theft, tampering, improper use, attempted 
        escape, illegal disclosure, trespass, or physical injury.  
        "Security information" includes crime prevention block maps and 
        lists of volunteers who participate in community crime 
        prevention programs and their home addresses and telephone 
           (b) "Trade secret information" means government data, 
        including a formula, pattern, compilation, program, device, 
        method, technique or process (1) that was supplied by the 
        affected individual or organization, (2) that is the subject of 
        efforts by the individual or organization that are reasonable 
        under the circumstances to maintain its secrecy, and (3) that 
        derives independent economic value, actual or potential, from 
        not being generally known to, and not being readily 
        ascertainable by proper means by, other persons who can obtain 
        economic value from its disclosure or use. 
           (c) "Labor relations information" means management 
        positions on economic and noneconomic items that have not been 
        presented during the collective bargaining process or interest 
        arbitration, including information specifically collected or 
        created to prepare the management position. 
           (d) "Parking space leasing data" means the following 
        government data on an applicant for, or lessee of, a parking 
        space:  residence address, home telephone number, beginning and 
        ending work hours, place of employment, and work telephone 
           (e) "Internal competitive proposal" means a proposal to 
        provide government services that is prepared by the staff of a 
        political subdivision in competition with proposals solicited by 
        the political subdivision from the private sector. 
           Subd. 2.  [CLASSIFICATION.] The following government data 
        is classified as nonpublic data with regard to data not on 
        individuals, pursuant to section 13.02, subdivision 9, and as 
        private data with regard to data on individuals, pursuant to 
        section 13.02, subdivision 12:  Security information; trade 
        secret information; sealed absentee ballots prior to opening by 
        an election judge; sealed bids, including the number of bids 
        received, prior to the opening of the bids; internal competitive 
        proposals prior to the time specified by a political subdivision 
        for the receipt of private sector proposals for the services; 
        parking space leasing data; and labor relations information, 
        provided that specific labor relations information which relates 
        to a specific labor organization is classified as protected 
        nonpublic data pursuant to section 13.02, subdivision 13. 
           Subd. 3.  [DATA DISSEMINATION.] Crime prevention block maps 
        and names, home addresses, and telephone numbers of volunteers 
        who participate in community crime prevention programs may be 
        disseminated to volunteers participating in crime prevention 
           Sec. 7.  [EFFECTIVE DATE.] 
           Sections 1 to 6 are effective the day following their final 
           Presented to the governor May 7, 1997 
           Signed by the governor May 8, 1997, 11:08 a.m.