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

                            CHAPTER 186-S.F.No. 851 
                  An act relating to local government; delaying the 
                  expiration of an applicability provision relating to 
                  restrictions on corporations created by political 
                  subdivisions; establishing a task force to make 
                  determinations and propose legislation relating to 
                  establishment of corporations by political 
                  subdivisions; amending Minnesota Statutes 1998, 
                  section 465.715, subdivision 1a. 
           Section 1.  Minnesota Statutes 1998, section 465.715, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [APPLICATION.] Except as provided by subdivision 
        2, subdivision 1 only applies to a corporation for which a 
        certificate of incorporation is issued by the secretary of state 
        on or after June 1, 1997.  A corporation that had been issued a 
        certificate of incorporation before June 1, 1997, may continue 
        to operate as if it had been created in compliance with 
        subdivision 1.  This subdivision expires July 1, 1999 2001. 
           Subdivision 1.  [ESTABLISHED; PURPOSE.] (a) A task force on 
        corporations created by political subdivisions is established to 
        review and consider the findings and recommendations of the 
        January 29, 1999, report of the state auditor on corporations 
        created by public entities and to determine: 
           (1) whether existing public corporations established by 
        political subdivisions should be authorized to continue as 
        public corporations, be dissolved, or be restructured as private 
           (2) whether political subdivisions of the state should be 
        authorized to create new corporations, and if so, under general 
        law or special law, and for what purposes; and 
           (3) what requirements or restrictions imposed by state law 
        on political subdivisions should be imposed on existing public 
        corporations that are authorized to continue as public 
           (b) The requirements or restrictions under paragraph (a), 
        clause (3), may relate to the powers and limitations of the 
        public corporations, including, but not limited to, the 
        applicability of laws such as those relating to open meetings, 
        data practices, contracting, compensation of employees and 
        officers, budgeting, auditing, tort liability, debt limitations, 
        investments, and conflicts of interests. 
           (c) By December 31, 1999, the task force shall report to 
        the chairs of the house and senate committees with jurisdiction 
        over local government issues.  The report must include proposed 
        legislation to implement the task force's recommendations. 
           Subd. 2.  [MEMBERS.] (a) The task force consists of 11 
        voting members, appointed as follows: 
           (1) two state representatives, one appointed by the speaker 
        of the house, and one appointed by the minority caucus leader; 
           (2) two state senators, appointed by the subcommittee on 
        committees of the committee on rules and administration, at 
        least one of whom must be a member of the minority caucus; 
           (3) two representatives of cities, appointed by the league 
        of Minnesota cities, one of whom must be a representative of an 
        existing corporation created by a city; 
           (4) two representatives of counties, appointed by the 
        association of Minnesota counties, one of whom must be a 
        representative of an existing corporation created by a county; 
           (5) two representatives of school districts, appointed by 
        the Minnesota school boards association, one of whom must be a 
        representative of an existing corporation created by a school 
        district; and 
           (6) the state auditor or her designee. 
           (b) In addition, the attorney general or his designee and 
        the secretary of state or her designee shall serve on the task 
        force ex officio as nonvoting members.  Members must be 
        appointed as soon as practicable after the effective date of 
        this section.  Vacancies and removal of members is governed by 
        Minnesota Statutes, section 15.059, subdivision 4. 
           (c) The state auditor shall convene the first meeting of 
        the task force as soon as practicable after the members are 
        appointed, but no later than September 1, 1999, at which time 
        the task force shall elect its chair or co-chairs. 
           Subd. 3.  [STAFF AND ADMINISTRATIVE 
        ASSISTANCE.] Legislative staff shall provide staff and 
        administrative assistance to the task force. 
           Subd. 4.  [EXPIRATION.] This section expires June 30, 2000. 
           Sec. 3.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor May 18, 1999 
           Signed by the governor May 21, 1999, 10:08 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes