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1997 Minnesota Session Laws

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                            CHAPTER 202-S.F.No. 1905 
                  An act relating to the organization and operation of 
                  state government; appropriating money for the general 
                  legislative and administrative expenses of state 
                  government; modifying provisions relating to state 
                  government operations; modifying information 
                  technology provisions; providing for community-based 
                  planning; modifying provisions relating to the 
                  municipal board; establishing dispute resolution 
                  procedures; providing criminal penalties; amending 
                  Minnesota Statutes 1996, sections 1.34, subdivision 2; 
                  3.056; 3.099, subdivision 3; 3.225, subdivision 1; 
                  3.85, subdivision 3; 10A.09, subdivision 6; 10A.20, 
                  subdivision 2; 14.47, subdivision 8; 15.0597, 
                  subdivisions 5 and 7; 15.0599, subdivision 4; 16A.10, 
                  subdivision 2; 16A.103, subdivision 1; 16A.11, 
                  subdivisions 1, 3b, and 3c; 16A.1285, subdivision 3; 
                  16A.129, subdivision 3; 16A.15, subdivision 3; 
                  16A.642, subdivision 1, and by adding a subdivision; 
                  16B.05, subdivision 2; 16B.20, subdivision 2; 16B.24, 
                  subdivision 5; 16B.35, by adding a subdivision; 
                  16B.42, subdivision 1; 16B.465; 16B.467; 16B.70, 
                  subdivision 2; 43A.17, subdivision 4; 43A.38, 
                  subdivision 4; 115.49, by adding a subdivision; 
                  116P.05, subdivision 1; 138.31, by adding a 
                  subdivision; 138.35; 138.91, by adding a subdivision; 
                  151.21, by adding a subdivision; 176.611, by adding a 
                  subdivision; 327.33, subdivision 2; 327B.04, 
                  subdivision 7; 349.163, subdivision 4; 356.865, 
                  subdivision 3; 363.073, subdivision 1; 394.23; 394.24, 
                  subdivision 1; 403.02, subdivision 2, and by adding a 
                  subdivision; 403.08, by adding a subdivision; 403.11, 
                  subdivision 2; 403.113, subdivisions 1, 2, 3, and 4; 
                  403.13; 414.0325, subdivision 1; 414.033, subdivisions 
                  2b, 11, and 12; 422A.101, subdivision 3; 462.352, 
                  subdivisions 5, 6, and by adding a subdivision; 
                  462.357, subdivision 2; 473.894, subdivision 3; and 
                  475A.06, subdivision 7; proposing coding for new law 
                  in Minnesota Statutes, chapters 4A; 16B; 43A; 62J; 
                  197; 394; 403; 414; 462; 465; and 473; proposing 
                  coding for new law as Minnesota Statutes, chapters 16E 
                  and 572A; repealing Minnesota Statutes 1996, sections 
                  10A.21; 15.95; 15.96; 16B.40; 16B.41; 16B.43; 16B.58, 
                  subdivision 8; 138.35, subdivision 3; and 414.033, 
                  subdivision 2a. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                                 APPROPRIATIONS 
        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 "1998" and "1999," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 1998, or June 30, 1999, 
        respectively.  
                                SUMMARY BY FUND 
                                                             BIENNIAL
                                  1998          1999           TOTAL
        General              $338,665,000   $309,544,000   $648,209,000
        State 
        Government 
        Special Revenue        11,866,000     13,311,000     25,177,000 
        Environmental             224,000        229,000        453,000
        Solid Waste Fund          445,000        450,000        895,000
        Lottery Prize 
        Fund                    1,300,000      1,150,000      2,450,000
        Highway User
        Tax Distribution        2,044,000      2,091,000      4,135,000
        Trunk Highway              37,000         37,000         74,000 
        Workers'
        Compensation            4,207,000      4,295,000      8,502,000 
        TOTAL                $358,788,000   $331,107,000   $689,895,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1998         1999 
        Sec. 2.  LEGISLATURE 
        Subdivision 1.  Total  
        Appropriation                         55,248,000     56,301,000
                      Summary by Fund
        General              55,211,000    56,264,000
        Trunk Highway            37,000        37,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Senate                      18,974,000     17,743,000
        Subd. 3.  House of Representatives    24,116,000     25,801,000
        Subd. 4.  Legislative 
        Coordinating Commission               12,158,000     12,757,000
                      Summary by Fund
        General              12,121,000    12,720,000
        Trunk Highway            37,000        37,000
        $4,754,000 the first year and 
        $5,362,000 the second year are for the 
        office of the revisor of statutes. 
        $1,030,000 the first year and 
        $1,052,000 the second year are for the 
        legislative reference library. 
        $4,615,000 the first year and 
        $4,622,000 the second year are for the 
        office of the legislative auditor. 
        $8,000 the first year and $8,000 the 
        second year are to provide additional 
        funding for the legislative 
        coordinating commission to contract for 
        sign language interpreter services for 
        meetings in Minnesota with legislators. 
        $18,000 the first year is for the 
        corporate subsidy reform commission 
        created by this act and is available 
        until June 30, 1999. 
        $65,000 the first year is for expenses 
        of the information policy task force 
        created by this act and is available 
        until June 30, 1999. 
        Sec. 3.  GOVERNOR AND 
        LIEUTENANT GOVERNOR                    3,816,000      3,884,000
        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. 
        By September 1 of each year, the 
        commissioner of finance shall report to 
        the chairs of the senate governmental 
        operations budget division and the 
        house state government finance division 
        any personnel costs incurred by the 
        office of the governor and 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                 7,718,000      7,916,000
        Sec. 5.  STATE TREASURER               2,070,000      2,134,000
        $1,000,000 the first year and 
        $1,000,000 the second year are for the 
        treasurer to pay for banking services 
        by fees rather than by compensating 
        balances.  
        Sec. 6.  ATTORNEY GENERAL             27,683,000     26,946,000
                      Summary by Fund
        General              25,261,000    24,441,000*
           * (The fund summary of "24,441,000" was vetoed by the 
        governor.) 
        State Government
        Special Revenue       1,849,000     1,924,000
        Environmental           128,000       131,000 
        Solid Waste Fund        445,000       450,000 
        $25,000 the first year is for the 
        attorney general to continue a study of 
        gender equity in athletics, to be 
        available until June 30, 1999. 
        Sec. 7.  SECRETARY OF STATE            5,937,000      5,914,000
        $34,000 the first year and $26,000 the 
        second year are for administrative 
        expenses related to the uniform 
        partnership act, 1997 S.F. No. 298, if 
        enacted. 
        $50,000 the first year is for licensing 
        digital signature certification 
        authorities under 1997 S.F. No. 173, if 
        enacted. 
        Sec. 8.  BOARD OF PUBLIC DISCLOSURE      593,000        483,000
        The board shall not adopt any new 
        administrative rules governing the 
        provisions outlined in Minnesota Rules, 
        chapter 4503 until after February 1, 
        1999. 
        Sec. 9.  INVESTMENT BOARD              2,163,000      2,247,000
        Sec. 10.  ADMINISTRATIVE HEARINGS      4,107,000      4,195,000
        This appropriation is from the workers' 
        compensation special compensation fund 
        for considering workers' compensation 
        claims. 
        Sec. 11.  OFFICE OF STRATEGIC 
        AND LONG-RANGE PLANNING                4,973,000      5,317,000
        $175,000 the first year and $175,000 
        the second year are for statewide 
        grants to implement teen courts pilot 
        projects.  Up to five percent of the 
        appropriation may be used to administer 
        the program.  This appropriation shall 
        not be included in the agency's base 
        for future bienniums. 
        $165,000 the first year and $165,000 
        the second year are for community-based 
        planning and the advisory council on 
        community-based planning. 
        $375,000 the second year is for 
        planning grants to counties, joint 
        planning districts that include at 
        least one county, or to a county and 
        one or more municipalities within the 
        county, when they submit a joint 
        planning application to prepare 
        community-based plans.  A county 
        receiving a grant may provide funding 
        to municipalities within the county for 
        purposes of the grant.  The office 
        shall give priority for grants to joint 
        planning districts or joint 
        applications from a county and one or 
        more municipalities.  This 
        appropriation is available until June 
        30, 2000. 
        $375,000 the second year is for 
        technology grants to counties, or joint 
        planning districts that include at 
        least one county, that elect to prepare 
        community-based plans.  This 
        appropriation is available until June 
        30, 2000. 
        $350,000 the first year is to make a 
        grant to a joint powers board, if one 
        is established by the counties of 
        Benton, Sherburne, and Stearns, and the 
        cities of St. Cloud, Waite Park, 
        Sartell, St. Joseph, and Sauk Rapids, 
        for the purposes of joint planning 
        under this act.  Other cities and towns 
        within the counties may elect to 
        participate in the joint planning 
        district.  The director may make the 
        grant once the joint powers board has 
        been formed and a copy of the joint 
        powers agreement has been received by 
        the director.  Members of the joint 
        powers board may delegate their 
        authority to adopt official controls to 
        the joint powers board. 
        $150,000 the first year is to make 
        three grants to additional counties or 
        joint powers boards selected to 
        participate in the community-based 
        planning pilot project.  A county that 
        receives a grant from this 
        appropriation may provide funding to 
        municipalities within the county for 
        purposes relating to the grant. 
        Sec. 12.  ADMINISTRATION 
        Subdivision 1.  Total 
        Appropriation                         49,349,000     46,486,000
                      Summary by Fund
        General              39,732,000    35,499,000
        State Government 
        Special Revenue       9,617,000    10,987,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Operations Management 
             4,107,000      3,563,000
        $183,000 the first year and $67,000 the 
        second year are for prescription drug 
        contracting activities.* (The preceding 
        text beginning "$183,000" was vetoed by 
        the governor.) 
        During the biennium ending June 30, 
        1999, for any executive agency contract 
        that is subject to Minnesota Statutes, 
        section 363.073, the commissioner shall 
        ensure to the extent practical and to 
        the extent consistent with the business 
        needs of the state, before the agency 
        enters into the contract, that the 
        company to receive the contract 
        attempts to recruit Minnesota welfare 
        recipients to fill vacancies in entry 
        level positions, if the company has 
        entry level employees in Minnesota. 
        Up to $500,000 the first year is for 
        the commissioner to conduct a study to 
        determine if there is sufficient 
        justification under a strict scrutiny 
        standard to continue or establish a 
        narrowly tailored purchasing program 
        for the benefit of any socially 
        disadvantaged groups.  In conducting 
        this study, to the extent practical the 
        commissioner shall use data gathered 
        for similar studies in Hennepin and 
        Ramsey counties.  The commissioner may 
        also study and recommend alternatives 
        for race and gender neutral programs to 
        stimulate growth opportunities for 
        small businesses.  The study of these 
        alternatives may include, but is not 
        limited to, increasing outreach 
        efforts, evaluating contract purchasing 
        procedures, providing increased 
        information and feedback to small 
        businesses, eliminating or reducing 
        bonding and insurance requirements, and 
        mentoring and education.  The 
        commissioner shall report to the 
        governor and the legislature by March 
        16, 1998. 
        Subd. 3.  Facilities Management 
             11,734,000    11,202,000
        $2,250,000 the first year and 
        $2,250,000 the second year are for 
        repair and maintenance of state 
        facilities under the custodial control 
        of the commissioner of administration. 
        When the museum-quality portrait of 
        Rudy and Lola Perpich authorized by 
        this act is completed, the commissioner 
        shall substitute it for the portrait of 
        Governor Rudy Perpich that currently is 
        displayed on the ground floor of the 
        State Capitol. 
        $650,000 is for the commissioner of 
        administration to acquire the building 
        in Ely currently used by the department 
        of revenue.  The commissioner shall 
        cause the building to be appraised by a 
        qualified appraiser.  The commissioner 
        shall submit the report of the 
        appraisal to the chairs of the senate 
        committees on taxes and state 
        government finance and to the chairs of 
        the house committees on taxes and ways 
        and means for their review and 
        comments.  The commissioner may not 
        acquire the building until 30 days 
        after the report of the appraisal was 
        received by the chairs or until the 
        chairs have all submitted their 
        comments to the commissioner, whichever 
        occurs first. 
        $5,187,000 the first year and 
        $5,249,000 the second year are for 
        office space costs of the legislature 
        and veterans organizations, for 
        ceremonial space, and for statutorily 
        free space. 
        The commissioner of administration 
        shall examine the feasibility and 
        practicality of relocating the division 
        of emergency services to larger 
        quarters outside the capitol. 
        Subd. 4.  Fiscal Agent
             1,060,000         160,000 
        (a) Children's Museum 
               160,000         160,000
        This appropriation is for a grant to 
        the Minnesota Children's Museum. 
        (b) Voyageur Center 
        $250,000 the first year is for a grant 
        to the city of International Falls for 
        the predesign and design of an 
        interpretive library and conference 
        center.  The center shall provide 
        educational opportunities and enhance 
        tourism by presenting information and 
        displays that preserve and interpret 
        the history of the voyageurs and 
        animals involved with the voyageurs, 
        emphasizing the importance of the fur 
        trade to the history and development of 
        the region and the state.  The center 
        shall include conference facilities.  
        The center shall be located in the city 
        of International Falls.  The city may 
        enter into a lease or management 
        contract with a nonprofit entity for 
        operation of the center.  In developing 
        plans for the facility, the 
        commissioner must consult with the 
        small business development center 
        located at Rainy River Community 
        College. 
        (c) Hockey Hall of Fame 
        $200,000 the first year is for a grant 
        to the hockey hall of fame in Eveleth 
        for capital improvements and building 
        and grounds maintenance.  Any money not 
        spent the first year is available the 
        second year. 
        (d) American Bald Eagle Center
        $450,000 the first year is for a grant 
        to the city of Wabasha to acquire and 
        prepare a site for and to predesign and 
        design the American Bald Eagle Center, 
        to be available until June 30, 1999. 
        Subd. 5.  Administrative Management 
             2,633,000     2,659,000
        $2,000 the first year and $2,000 the 
        second year are for the state 
        employees' band. 
        $175,000 the first year and $175,000 
        the second year are for the STAR 
        program. 
        $187,000 the first year and $190,000 
        the second year are for the office of 
        the state archaeologist. 
        $30,000 the first year is for the 
        office of the state archaeologist to 
        identify Indian burial mounds 
        throughout the state and to provide 
        information about these burial mounds 
        to units of local government. 
        Subd. 6.  Management Analysis 
               584,000        658,000
        Subd. 7.  Technology Management
            24,401,000     24,028,000
                      Summary by Fund
        General              14,784,000    13,041,000
        State Government 
        Special Revenue       9,617,000    10,987,000
        The appropriation from the special 
        revenue fund is for recurring costs of 
        911 emergency telephone service.  
        $724,000 the first year and $936,000 
        the second year are for the network 
        telecommunications initiative.  It is 
        intended that portions of this 
        appropriation be transferred to other 
        agencies to fund project costs.  The 
        commissioner is authorized to make the 
        transfers with the advance approval of 
        the commissioner of finance.  
        $12,500,000 the first year and 
        $10,500,000 the second year are for 
        modification of state business systems 
        to address year 2000 changes.  
        $8,000,000 the first year is placed in 
        a contingent account and is available 
        only upon approval of the governor, 
        after consultation with the legislative 
        advisory commission.  The commissioner 
        shall report to the legislature by 
        December 15, 1997, on progress of the 
        project.  This appropriation is not 
        available until the commissioner has 
        determined that all other money 
        allocated for replacement or 
        enhancement of existing technology for 
        year 2000 compliance will be expended.  
        Each request for additional funding 
        must include the following 
        information:  (1) a complete 
        description of the impact if the 
        information system is not upgraded for 
        year 2000 compliance; (2) a description 
        of other means of addressing the 
        problem if additional funding is not 
        provided; and (3) a description of 
        problems that may impact other systems 
        if the funding is not provided. 
        $280,000 the first year and $281,000 
        the second year are for the 
        intergovernmental information systems 
        advisory council. 
        Funds that were made available to 
        develop the local government financial 
        reporting system in Laws 1994, chapter 
        587, article 3, section 3, clause (5), 
        shall also be used to implement and 
        operate the system. 
        The intergovernmental information 
        systems advisory council shall create a 
        committee to provide direction for the 
        ongoing operation and maintenance of 
        the local government financial 
        reporting system similar to the 
        recommendation made in the initial 
        report to the legislative commission on 
        planning and fiscal policy.  Members 
        shall include one member each from the 
        legislature, office of the state 
        auditor, department of revenue, 
        department of finance, counties, 
        cities, townships, special districts, 
        and a member from the general financial 
        community. 
        Subd. 8.  Public Broadcasting 
             4,830,000      4,216,000
        $1,700,000 the first year and 
        $1,700,000 the second year are for 
        matching grants for public television.  
        $250,000 the first year and $250,000 
        the second year are a one-biennium 
        appropriation and must not be included 
        in the budget base for the next 
        biennium.  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 will increase 
        literacy and attempt to reduce youth 
        violence in our communities.  
        $700,000 the first year and $700,000 
        the second year are for public 
        television equipment needs.  $100,000 
        the first year and $100,000 the second 
        year are a one-biennium appropriation 
        and must not be included in the budget 
        base for the next biennium.  Equipment 
        grant allocations shall be made after 
        considering the recommendations of the 
        Minnesota public television association.
        $750,000 the first year is for a 
        one-time grant to Twin Cities public 
        television to construct a digital 
        broadcast transmission facility and 
        develop high-definition digital 
        television capability.  Twin Cities 
        public television will work with the 
        University of Minnesota and other 
        higher education institutions to 
        explore and demonstrate educational 
        uses of the broadcast services funded 
        by this appropriation.  This 
        appropriation must be matched equally 
        from nonstate sources. 
        $305,000 the first year and $441,000 
        the second year are for grants 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. 
        $400,000 the first year and $400,000 
        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. 
        $80,000 the first year and $80,000 the 
        second year are a one-biennium 
        appropriation and must not be included 
        in the budget base for the next 
        biennium. 
        $925,000 the first year and $925,000 
        the second year are for equipment 
        grants to public radio stations.  
        $431,000 the first year and $431,000 
        the second year are a one-biennium 
        appropriation and must not be included 
        in the budget base for the next 
        biennium.  These grants must be 
        allocated after considering the 
        recommendations of the Association of 
        Minnesota Public Educational Radio 
        Stations and Minnesota Public Radio, 
        Inc. 
        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. 
        $25,000 the first year and $25,000 the 
        second year are for a grant to the 
        association of Minnesota public 
        education radio stations for station 
        KMOJ.  This money may be used for 
        equipment.  This appropriation is 
        separate from and in addition to money 
        appropriated for stations affiliated 
        with Minnesota Public Radio and the 
        Association of Minnesota Public Radio 
        Stations. 
        Before receiving funding under this 
        section, each public radio or public 
        television station or network that is 
        to receive funding must agree to submit 
        a report to the commissioner.  The 
        report must list all sources of revenue 
        for the station or network and any 
        for-profit subsidiaries.  This must 
        include all federal, state, or local 
        funds received; private and corporate 
        gifts, grants, and other donations, 
        including conditions placed on the use 
        of these; investment earnings; and a 
        programming list.  This report must be 
        submitted annually beginning in 1998.  
        Each report must cover the previous 
        year.  This paragraph does not apply to 
        grants for public information 
        television transmission of legislative 
        activities. 
        Sec. 13.  OFFICE OF TECHNOLOGY         5,161,000      2,777,000 
        $2,326,000 the first year and 
        $2,377,000 the second year are for the 
        administrative operations of the office 
        of technology. 
        $935,000 the first year is for the 
        North Star online information service 
        under new Minnesota Statutes, section 
        16E.07.  Any unencumbered balance 
        remaining in the first year does not 
        cancel and is available for the second 
        year of the biennium. 
        $500,000 the first year is to develop 
        an electronic system to allow the 
        public to retrieve by computer business 
        license information prepared by the 
        commissioner of economic development, 
        as required by new Minnesota Statutes, 
        section 16E.08.  Any unencumbered 
        balance remaining in the first year 
        does not cancel and is available for 
        the second year of the biennium.  The 
        executive director shall report to the 
        legislature by January 15, 1998, on 
        progress of the project. 
        $400,000 the first year and $400,000 
        the second year are to develop a United 
        Nations trade point in the state under 
        new Minnesota Statutes, section 
        16E.11.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        $500,000 the first year is to support 
        activities associated with a 
        plenipotentiary conference of the 
        International Telecommunications Union. 
        $500,000 the first year is to operate 
        the Internet Center under new Minnesota 
        Statutes, section 16E.12, and to 
        develop community technology resources 
        under new Minnesota Statutes, section 
        16E.13.  Any unencumbered balance 
        remaining in the first year does not 
        cancel and is available for the second 
        year of the biennium. 
        Sec. 14.  CAPITOL AREA ARCHITECTURAL 
        AND PLANNING BOARD                       761,000        289,000
        $455,000 the first year is for two 
        governors' portraits, predesign of a 
        memorial to Coya Knutson, design and 
        construction of a memorial to Hubert H. 
        Humphrey, and completion of the 
        Minnesota women's suffrage memorial 
        garden and is available until 
        expended.  The portrait of Rudy and 
        Lola Perpich must be a museum-quality 
        oil painting based on the portrait of 
        Rudy and Lola Perpich currently on 
        display at the Minnesota Historical 
        Society.* (The preceding text beginning 
        "$455,000" was vetoed by the governor.) 
        The capitol area architectural and 
        planning board shall develop standards 
        for the content, construction, and 
        materials used for the official 
        portrait of a governor that is to be 
        hung in the state capitol.  The board 
        shall give particular attention to the 
        question of whether the governor's 
        spouse should be included in the 
        official portrait of a future governor 
        and the length of time the portrait 
        should be expected to last without 
        significant deterioration.  The board 
        shall report its recommendations to the 
        legislature by January 15, 1998. 
        Notwithstanding Laws 1993, chapter 192, 
        section 16, the appropriation in that 
        section for the Hubert H. Humphrey 
        memorial need not be matched. 
        The appropriation in Laws 1996, chapter 
        390, section 5, for revision of the 
        board's comprehensive plan and zoning 
        ordinance is available until June 30, 
        1998.  
        Sec. 15.  FINANCE 
        Subdivision 1.  Total 
        Appropriation                         22,520,000     22,751,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Accounting Services  
             4,696,000      4,795,000
        Subd. 3.  Accounts Receivable
        Operations
             1,476,000      1,513,000
        $595,000 the first year and $610,000 
        the second year are for transfer to the 
        department of revenue. 
        $266,000 the first year and $273,000 
        the second year are for transfer to the 
        department of human services. 
        $562,000 the first year and $576,000 
        the second year are for transfer to the 
        attorney general. 
        Subd. 4.  Budget Services 
             2,129,000      2,189,000
        The commissioner of finance shall 
        convene a joint executive-legislative 
        work group to evaluate the current 
        usefulness and benefits of agency 
        performance reports prepared in 
        accordance with the requirements of 
        Minnesota Statutes, sections 15.90 to 
        15.92.  The work group shall include 
        representatives of reporting agencies, 
        the office of the legislative auditor, 
        the legislative committees to which 
        agency performance reports are 
        presented, and other parties as deemed 
        appropriate by the commissioner.  By 
        November 3, 1997, the commissioner 
        shall report the progress of the work 
        group to the legislative commission on 
        planning and fiscal policy and other 
        committees as appropriate.  The report 
        of the commissioner shall contain 
        recommendations on proposed 
        administrative and legislative actions 
        to increase the relevance, overall 
        usefulness, and benefits of state 
        performance reporting efforts, and 
        increase the efficiency of the report 
        development process.  By February 2, 
        1998, the commissioner shall report to 
        the legislative commission on planning 
        and fiscal policy and other committees 
        as appropriate on performance measures 
        proposed for reporting on specific 
        agencies, and request the concurrence 
        of the legislature on the proposed 
        measures. 
        The term "annualization of new 
        programs" as used in the detailed 
        budget estimates shall be changed to 
        "new programs to agency base." 
        Subd. 5.  Economic Analysis  
               313,000        319,000
        Subd. 6.  Information Services 
            12,304,000     12,304,000
        Subd. 7.  Management Services 
             1,602,000      1,631,000
        Sec. 16.  EMPLOYEE RELATIONS 
        Subdivision 1.  Total 
        Appropriation                          8,505,000      7,228,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Human Resources
        Management
             7,051,000      7,124,000
        $325,000 the first year and $250,000 
        the second year are for continuation of 
        reforms to the state's human resource 
        management processes and policies, 
        including, but not limited to, 
        enhancing redeployment procedures, 
        application and testing services, 
        hiring, the position classification 
        system, and employee development 
        processes.  
        $50,000 the first year and $50,000 the 
        second year are for a grant to the 
        government training service. 
        $75,000 the first year and $75,000 the 
        second year are for the Minnesota 
        quality college under Minnesota 
        Statutes, section 43A.211. 
        $22,000 the first year and $22,000 the 
        second year are to fund a position to 
        administer the state's annual combined 
        charities program. 
        During the biennium ending June 30, 
        1999, the commissioner shall attempt to 
        recruit Minnesota welfare recipients to 
        fill at least ten percent of vacancies 
        in entry level state positions. 
        Subd. 3.  Employee Insurance
             1,454,000        104,000
        $104,000 the first year and $104,000 
        the second year are for the 
        right-to-know contracts administered 
        through the employee insurance division.
        $1,000,000 the first year is a one-time 
        appropriation to establish a state 
        workers' compensation settlement and 
        contingency reserve.  This 
        appropriation must be transferred to a 
        separate account within the 
        miscellaneous special revenue fund, 
        from which payments may be made and 
        premiums assessed to replenish the 
        reserve account under new Minnesota 
        Statutes, section 176.611, subdivision 
        2a. 
        During the biennium ending June 30, 
        1999, the amount necessary to pay 
        premiums for coverage by the worker's 
        compensation reinsurance association 
        under Minnesota Statutes, section 
        79.34, is appropriated from the general 
        fund to the commissioner. 
        Sec. 17.  REVENUE 
        Subdivision 1.  Total  
        Appropriation                         80,342,000     82,574,000
                      Summary by Fund
        General              78,202,000    80,385,000
        Highway User 
        Tax Distribution      2,044,000     2,091,000
        Environmental            96,000        98,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Income Tax 
            14,297,000     14,549,000
        Subd. 3.  Business Excise and Consumption
            13,657,000     13,972,000
                      Summary by Fund
        General              11,517,000    11,783,000
        Highway User 
        Tax Distribution      2,044,000     2,091,000
        Environmental            96,000        98,000
        $150,000 each year from the highway use 
        tax distribution fund is for funding of 
        the dyed fuel program.  This 
        appropriation is reduced by the amount 
        of any federal grants available for use 
        during the biennium for dyed fuel 
        enforcement purposes. 
        Subd. 4.  Property Tax and State Aids 
             2,869,000      3,026,000
        Subd. 5.  Tax Operations 
            27,679,000     28,207,000
        Subd. 6.  Legal and Research 
             3,830,000      3,832,000
        $80,000 the first year is to complete 
        the Minnesota/Wisconsin tax reciprocity 
        study. 
        Subd. 7.  Administrative Support 
            15,887,000     16,827,000
        Subd. 8.  Accounts Receivable 
             2,123,000      2,161,000
        During the biennium ending June 30, 
        1999, when a debt owed to any entity of 
        state government for which the 
        Minnesota collection enterprise has 
        jurisdiction becomes 121 days past due, 
        the state entity must refer the account 
        to the commissioner of revenue for 
        assignment to the Minnesota collection 
        enterprise.  This requirement does not 
        apply if there is a dispute over the 
        amount or validity of the debt, if the 
        debt is the subject of legal action or 
        administrative proceedings, or the 
        agency determines that the debtor is 
        adhering to acceptable payment 
        arrangements.  The commissioner of 
        revenue, in consultation with the 
        commissioner of finance, may provide 
        that certain types of debt need not be 
        referred to the commissioner for 
        assignment to the collection enterprise 
        under this paragraph.  Methods and 
        procedures for referral shall follow 
        internal guidelines prepared by the 
        commissioner of finance.  
        Sec. 18.  MILITARY AFFAIRS  
        Subdivision 1.  Total 
        Appropriation                         10,416,000    10,527,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Maintenance of Training 
        Facilities 
              6,056,000     6,129,000
        Subd. 3.  General Support
              2,008,000     2,045,000
        $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.  
        $400,000 the first year and $400,000 
        the second year are for a pilot project 
        to make armories available for 
        recreational activities for youth.  
        This amount shall not be included in 
        the agency's base for future 
        bienniums.  Scheduling of these 
        activities is subject to approval of 
        the adjutant general.  The project must 
        include, but is not limited to, 
        armories in Minneapolis and St. Paul.  
        The adjutant general shall report to 
        the chair of the state government 
        finance division in the house and the 
        chair of the governmental operations 
        budget division in the senate on the 
        results of the pilot project, including 
        the number of youth served, programs 
        provided, benefits of the programs to 
        communities served, and cost of 
        administering the project. 
        Subd. 4.  Enlistment Incentives
             2,352,000      2,353,000 
        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. 19.  VETERANS AFFAIRS            21,594,000      4,324,000
        $231,000 the first year and $232,000 
        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.  
        Before the transfer, the commissioner 
        of veterans affairs shall explain why 
        the unencumbered balance exists.  The 
        amounts transferred must be identified 
        to the chairs of the senate 
        governmental operations budget 
        committee and the house governmental 
        operations 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. 
        $110,000 is for a matching grant for a 
        memorial to be constructed in the city 
        of Park Rapids to honor veterans from 
        all wars involving armed forces of the 
        United States.  In-kind donations may 
        be used for the nonstate match.  The 
        appropriation does not expire and is 
        available until expended.  $10,000 of 
        this amount is for administrative costs.
        $110,000 the first year is to make a 
        grant to the Red Tail Project of the 
        Southern Minnesota Wing of the 
        Confederate Air Force and Tuskeegee 
        Airmen, Inc., to restore a P-51C 
        Mustang World War II fighter plane to 
        honor the airmen known as the 
        "Tuskeegee Airmen."  The appropriation 
        must be matched by nonstate 
        contributions to the project.  $10,000 
        of this amount is for administrative 
        costs. 
        $17,090,000 the first year is to make 
        bonus payments authorized under 
        Minnesota Statutes, section 197.79.  
        The appropriation may not be used for 
        administrative purposes.  The 
        appropriation does not expire until the 
        commissioner acts on all applications 
        submitted under Minnesota Statutes, 
        section 197.79. 
        $250,000 the first year and $250,000 
        the second year are to administer the 
        bonus program established under 
        Minnesota Statutes, section 197.79.  
        The appropriation does not expire until 
        the commissioner acts on all the 
        applications submitted under Minnesota 
        Statutes, section 197.79. 
        Sec. 20.  VETERANS OF FOREIGN 
        WARS                                      41,000         41,000
        For carrying out the provisions of Laws 
        1945, chapter 455. 
        Sec. 21.  MILITARY ORDER OF 
        THE PURPLE HEART                          20,000         20,000
        Sec. 22.  DISABLED AMERICAN VETERANS      13,000         13,000
        For carrying out the provisions of Laws 
        1941, chapter 425. 
        Sec. 23.  GAMBLING  CONTROL            2,277,000      2,177,000
        The commissioner of revenue must 
        continue to provide technical support 
        to the lawful gambling control board 
        for the collection of gambling taxes 
        without charge during the biennium 
        ending June 30, 1999. 
        Sec. 24.  RACING COMMISSION              371,000        379,000
        Sec. 25.  STATE LOTTERY                1,300,000      1,150,000
        This appropriation is from the state 
        lottery prize fund to the commissioner 
        of human services for outpatient and 
        inpatient compulsive gambling treatment 
        programs, compulsive gambling hotline 
        services, felony screening, compulsive 
        gambling youth education, and any other 
        compulsive gambling treatment programs 
        under Minnesota Statutes, section 
        245.98.  
        $150,000 the first year is for the 
        inpatient treatment program at Project 
        Turnabout in Granite Falls.  
        Fifty percent of any money received by 
        the Gamblers' Intervention Center of 
        Duluth under any appropriation enacted 
        during the 1997 regular legislative 
        session must go to the Arrowhead 
        Center, Inc. in Virginia. 
        The total amount of money spent from 
        all appropriations enacted during the 
        1997 regular legislative session for 
        hotline services, felony screening, and 
        compulsive gambling youth education 
        must not exceed the total amount spent 
        for these purposes during the biennium 
        ending June 30, 1997. 
        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. 
        Sec. 26.  AMATEUR SPORTS 
        COMMISSION                             6,145,000        999,000
        $5,000,000 the first year is for grants 
        for ice centers under Minnesota 
        Statutes, section 240A.09, of up to 
        $250,000 each.  Up to $1,000,000 of 
        this amount may be used for renovation 
        grants for existing ice arenas of up to 
        $100,000 each.  Any unencumbered 
        balance remaining in the first year 
        does not cancel and is available for 
        the second year of the biennium. 
        The amateur sports commission shall 
        report to the legislature by January 
        15, 1998, on progress toward the 
        construction and renovation of ice 
        arenas, their success, financing, and 
        operation, and any need for additional 
        state-assisted efforts. 
        $400,000 the first year and $400,000 
        the second year are for pilot projects 
        for youth sports as provided in this 
        act.  This amount must not be included 
        in the agency's base for future 
        bienniums.  The executive director 
        shall report by January 15, 1999, to 
        the chairs of the state government 
        finance division in the house and the 
        governmental operations budget division 
        in the senate on the results of the 
        pilot project, including the number of 
        youth served, programs provided, 
        benefits of the programs to communities 
        served, and the cost of administering 
        the project. 
        $50,000 the first year is for a grant 
        to the United States Olympic 
        Committee's Minnesota Olympic 
        development program to fund the 
        development of winter sports programs 
        for females from ages 13 to 18.  The 
        money is available only upon 
        demonstration of a dollar for dollar 
        match from nonstate sources. 
        $75,000 the first year is to study the 
        feasibility of constructing an indoor 
        amateur tennis facility in the city of 
        St. Paul. 
        Sec. 27.  BOARD OF THE ARTS        
        Subdivision 1.  Total Appropriation   13,018,000     13,036,000
        Any unencumbered balance remaining in 
        this section the first year does not 
        cancel but is available for the second 
        year of the biennium. 
        Subd. 2.  Operations and Services        988,000        961,000
        Subd. 3.  Grants Program               8,518,000      8,540,000
        The board shall spend this 
        appropriation to ensure that at least 
        ten percent of the expenditure is for 
        arts programs intended primarily for 
        children. 
        $50,000 the first year and $50,000 the 
        second year are for grants to 
        individual artists of color to create 
        new works in collaboration with 
        nonprofit arts and community 
        organizations.  Special emphasis must 
        be made to reach artists of color who 
        are recent immigrants. 
        Subd. 4.  Regional Arts
        Councils                               3,512,000      3,535,000
        The board shall distribute this 
        appropriation to the regional arts 
        councils to ensure that ten percent of 
        the total distribution in each region 
        is for arts programs intended primarily 
        for children. 
        Sec. 28.  MINNESOTA HUMANITIES 
        COMMISSION                               886,000        886,000
        Any unencumbered balance remaining in 
        the first year does not cancel but is 
        available for the second year of the 
        biennium. 
        Sec. 29.  GENERAL CONTINGENT 
        ACCOUNTS                                 600,000        600,000
                      Summary by Fund
        General                 100,000       100,000
        State Government 
        Special Revenue         400,000       400,000
        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 and for 
        transfer to the health boards if 
        required for unforeseen expenditures of 
        an emergency nature.  The boards 
        receiving the additional services or 
        supplemental appropriations shall set 
        their fees to cover the costs. 
        Sec. 30.  TORT CLAIMS                    275,000        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. 31.  MINNESOTA STATE   
        RETIREMENT SYSTEM                      2,266,000      2,379,000
        The amounts estimated to be needed for 
        each program are as follows: 
        (a) Legislators 
             2,093,000      2,197,000
        Under Minnesota Statutes, sections 
        3A.03, subdivision 2; 3A.04, 
        subdivisions 3 and 4; and 3A.11. 
        (b) Constitutional Officers 
               173,000        182,000
        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. 32.  MINNEAPOLIS EMPLOYEES 
        RETIREMENT FUND                       11,005,000      9,550,000
        $10,455,000 the first year and 
        $9,000,000 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. 33.  POLICE AND FIRE   
        AMORTIZATION AID                       6,303,000      6,300,000
        $4,925,000 the first year and 
        $4,925,000 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. 
        $378,000 the first year and $375,000 
        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. 34.  BOARD OF GOVERNMENT   
        INNOVATION AND COOPERATION                1,312,000    1,009,000
        $306,000 the first year is to fund a 
        portion of the cooperation and 
        combination aid awards that were 
        approved by the board in fiscal years 
        1996 and 1997. 
        Sec. 35.  BOND SALE SCHEDULE 
        The commissioner of finance shall 
        schedule the sale of state general 
        obligation bonds so that, during the 
        biennium ending June 30, 1999, no more 
        than $545,457,000 will need to be 
        transferred from the general fund to 
        the state bond fund to pay principal 
        and interest due and to become due on 
        outstanding state general obligation 
        bonds.  During the biennium, before 
        each sale of state general obligation 
        bonds, the commissioner of finance 
        shall calculate the amount of debt 
        service payments needed on bonds 
        previously issued and shall estimate 
        the amount of debt service payments 
        that will be needed on the bonds 
        scheduled to be sold, the commissioner 
        shall adjust the amount of bonds 
        scheduled to be sold so as to remain 
        within the limit set by this section.  
        The amount needed to make the debt 
        service payments is appropriated from 
        the general fund as provided in 
        Minnesota Statutes, section 16A.641. 
           Sec. 36.  [STATEWIDE SYSTEMS ACCOUNT.] 
           Subdivision 1.  [CONTINUATION.] The statewide systems 
        account is a separate account in the general fund.  All money 
        resulting from billings for statewide systems services must be 
        deposited in the account.  For the purposes of this section, 
        statewide systems includes the state accounting system, payroll 
        system, human resources system, procurement system, and related 
        information access systems. 
           Subd. 2.  [BILLING PROCEDURES.] The commissioner of finance 
        may bill up to $3,111,000 in fiscal year 1998 and $3,659,000 in 
        fiscal year 1999 for statewide systems services provided to 
        state agencies, judicial branch agencies, the University of 
        Minnesota, the Minnesota state colleges and universities, and 
        other entities.  Billing must be based only on usage of services 
        relating to statewide systems provided by the intertechnologies 
        division.  Each agency shall transfer from agency operating 
        appropriations to the statewide systems account the amount 
        billed by the commissioner.  Billing policies and procedures 
        related to statewide systems services must be developed by the 
        commissioner of finance in consultation with the commissioners 
        of employee relations and administration, the University of 
        Minnesota, and the Minnesota state colleges and universities. 
           Subd. 3.  [APPROPRIATION.] Money transferred into the 
        account is appropriated to the commissioner of finance to pay 
        for statewide systems services during fiscal years 1998 and 1999.
                                   ARTICLE 2 
                          STATE GOVERNMENT OPERATIONS 
           Section 1.  Minnesota Statutes 1996, section 1.34, 
        subdivision 2, is amended to read: 
           Subd. 2.  [OFFICERS.] The members of the legislative 
        advisory committee shall select a chair and other officers as 
        deemed necessary.  The chair of the commission shall rotate 
        every two years between the house and the senate. 
           Sec. 2.  Minnesota Statutes 1996, section 3.056, is amended 
        to read: 
           3.056 [DESIGNATION OF SUCCESSOR COMMITTEE.] 
           If a law assigns a power or duty to a named legislative 
        committee or its chair, and the committee has been renamed or no 
        longer exists, the speaker of the house of representatives or 
        the senate committee on rules and administration shall designate 
        the successor committee or chair for the law as provided in this 
        section.  If the committee has been renamed but retains 
        jurisdiction of the subject of the power or duty, the speaker or 
        senate committee shall designate the renamed committee as 
        successor.  If the committee has been renamed and jurisdiction 
        of the subject of the power or duty has been transferred to 
        another committee, the speaker or senate committee shall 
        designate the committee with current jurisdiction as the 
        successor.  If the named committee no longer exists, the speaker 
        or senate committee shall designate as successor the committee 
        with the jurisdiction that most closely corresponds with the 
        former jurisdiction of the named committee.  The house of 
        representatives and the senate shall maintain a list on the 
        World Wide Web of renamed or successor committees to committees 
        that are referenced in law. 
           Sec. 3.  Minnesota Statutes 1996, section 3.099, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LEADERS.] The senate committee on rules and 
        administration for the senate and the house committee on rules 
        and legislative administration for the house may each designate 
        for their respective body up to three five leadership positions 
        to receive up to 140 percent of the compensation of other 
        members. 
           At the commencement of each biennial legislative session, 
        each house of the legislature shall adopt a resolution 
        designating its majority and minority leader. 
           The majority leader is the person elected by the caucus of 
        members in each house which is its largest political 
        affiliation.  The minority leader is the person elected by the 
        caucus which is its second largest political affiliation.* (The 
        governor marked the preceding section as vetoed.) 
           Sec. 4.  Minnesota Statutes 1996, section 3.225, 
        subdivision 1, is amended to read: 
           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 but does not include legal 
        services for official legislative business. 
           Sec. 5.  Minnesota Statutes 1996, section 3.85, subdivision 
        3, is amended to read: 
           Subd. 3.  [MEMBERSHIP.] The commission consists of five six 
        members of the senate appointed by the subcommittee on 
        committees of the committee on rules and administration and five 
        six members of the house of representatives appointed by the 
        speaker.  Members shall be appointed at the commencement of each 
        regular session of the legislature for a two-year term beginning 
        January 16 of the first year of the regular session.  Vacancies 
        that occur while the legislature is in session shall be filled 
        like regular appointments.  If the legislature is not in 
        session, senate vacancies shall be filled by the last 
        subcommittee on committees of the senate committee on rules and 
        administration or other appointing authority designated by the 
        senate rules, and house vacancies shall be filled by the last 
        speaker of the house, or if the speaker is not available, by the 
        last chair of the house rules committee. 
           Sec. 6.  Minnesota Statutes 1996, section 10A.09, 
        subdivision 6, is amended to read: 
           Subd. 6.  Each individual who is required to file a 
        statement of economic interest shall file a supplementary 
        statement on April 15 of each year that the individual remains 
        in office if information on the most recently filed statement 
        has changed.  The statement shall include a space for each 
        category of information in which the individual may indicate 
        that no change in information has occurred since the previous 
        statement.  The supplementary statement, if required, shall 
        include the amount of each honorarium in excess of $50 received 
        since the previous statement, together with the name and address 
        of the source of the honorarium.  A statement of economic 
        interest submitted by an officeholder shall be filed with the 
        statement submitted as a candidate. 
           Sec. 7.  Minnesota Statutes 1996, section 10A.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  The reports shall be filed with the board on or 
        before January 31 of each year and additional reports shall be 
        filed as required and in accordance with clauses (a) and (b).  
           (a) In each year in which the name of the candidate is on 
        the ballot, the report of the principal campaign committee shall 
        be filed ten 15 days before a primary and ten days before a 
        general election, seven days before a special primary and a 
        special election, and ten days after a special election cycle.  
        The report due after a special election may be filed on January 
        31 following the special election if the special election is 
        held not more than 60 days before that date.  
           (b) In each general election year political committees and 
        political funds other than principal campaign committees shall 
        file reports ten days before a primary and general election.  
           If a scheduled filing date falls on a Saturday, Sunday or 
        legal holiday, the filing date shall be the next regular 
        business day. 
           Sec. 8.  Minnesota Statutes 1996, section 14.47, 
        subdivision 8, is amended to read: 
           Subd. 8.  [SALES AND DISTRIBUTION OF COMPILATION.] Any 
        compilation, reissue, or supplement published by the revisor 
        shall be sold by the revisor for a reasonable fee and its 
        proceeds deposited in the general fund.  An agency shall 
        purchase from the revisor the number of copies of the 
        compilation or supplement needed by the agency.  The revisor 
        shall provide without charge copies of each edition of any 
        compilation, reissue, or supplement to the persons or bodies 
        listed in this subdivision.  Those copies must be marked with 
        the words "State Copy" and kept for the use of the office.  The 
        revisor shall distribute:  
           (a) 25 copies to the office of the attorney general; 
           (b) 12 copies for the legislative commission for review of 
        administrative rules two copies to the leader of each caucus in 
        the house of representatives and the senate, two copies to the 
        legislative reference library, and one copy each to the house of 
        representatives research department and the office of senate 
        counsel and research; 
           (c) 3 copies to the revisor of statutes for transmission to 
        the Library of Congress for copyright and depository purposes; 
           (d) 150 copies to the state law library; 
           (e) 10 copies to the law school of the University of 
        Minnesota; and 
           (f) one copy of any compilation or supplement to each 
        county library maintained pursuant to section 134.12 upon its 
        request, except in counties containing cities of the first 
        class.  If a county has not established a county library 
        pursuant to section 134.12, the copy will be provided to any 
        public library in the county upon its request. 
           Sec. 9.  Minnesota Statutes 1996, section 15.0597, 
        subdivision 5, is amended to read: 
           Subd. 5.  [NOMINATIONS FOR VACANCIES.] Any person may make 
        a self-nomination for appointment to an agency vacancy by 
        completing an application on a form prepared and distributed by 
        the secretary.  The secretary may provide for the submission of 
        the application by electronic means.  Any person or group of 
        persons may, on the prescribed application form, nominate 
        another person to be appointed to a vacancy so long as the 
        person so nominated consents in writing on the application form 
        to the nomination.  The application form shall specify the 
        nominee's name, mailing address, telephone number, preferred 
        agency position sought, a statement that the nominee satisfies 
        any legally prescribed qualifications, and any other information 
        the nominating person feels would be helpful to the appointing 
        authority.  The nominating person has the option of indicating 
        the nominee's sex, political party preference or lack thereof, 
        status with regard to disability, race and national origin on 
        the application form.  The application form shall make the 
        option known.  If a person submits an application at the 
        suggestion of an appointing authority, the person shall so 
        indicate on the application form.  Twenty-one days after 
        publication of a vacancy in the State Register pursuant to 
        subdivision 4, the secretary shall submit copies of all 
        applications received for a position to the appointing authority 
        charged with filling the vacancy.  If no applications have been 
        received by the secretary for the vacant position by the date 
        when copies must be submitted to the appointing authority, the 
        secretary shall so inform the appointing authority.  
        Applications received by the secretary shall be deemed to have 
        expired one year after receipt of the application.  An 
        application for a particular agency position shall be deemed to 
        be an application for all vacancies in that agency occurring 
        prior to the expiration of the application and shall be public 
        information. 
           Sec. 10.  Minnesota Statutes 1996, section 15.0597, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REPORT.] Together with the compilation required 
        in subdivision 3, the secretary shall annually deliver to the 
        governor and the legislature a report containing the following 
        information: 
           (1) the number of vacancies occurring in the preceding 
        year; 
           (2) the number of vacancies occurring as a result of 
        scheduled ends of terms, unscheduled vacancies and the creation 
        of new positions; 
           (3) breakdowns by county, legislative district, and 
        congressional district, and, if known, the sex, political party 
        preference or lack thereof, status with regard to disability, 
        race, and national origin, for members whose agency membership 
        terminated during the year and appointees to the vacant 
        positions; and 
           (4) the number of vacancies filled from applications 
        submitted by (i) the appointing authorities for the positions 
        filled, (ii) nominating persons and self-nominees who submitted 
        applications at the suggestion of appointing authorities, and 
        (iii) all others. 
           Sec. 11.  Minnesota Statutes 1996, section 15.0599, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REGISTRATION; INFORMATION REQUIRED.] (a) The 
        appointing authority of a newly established agency shall provide 
        the secretary with the following information: 
           (1) the name, mailing address, and telephone number of the 
        agency; 
           (2) the legal authority for the establishment of the agency 
        and the name and the title of the person or persons appointing 
        agency members; 
           (3) the powers and duties of the agency and whether the 
        agency, however designated, is best described by section 15.012, 
        paragraph (a), (b), (c), (e), or (f); 
           (4) the number of authorized members, together with any 
        prescribed restrictions on eligibility; 
           (5) the roster of current members, including mailing 
        addresses and telephone numbers; 
           (6) a breakdown of the membership showing distribution by 
        county, legislative district, and congressional district and 
        compliance with any restrictions listed in accordance with 
        clause (4); 
           (7) if any members have voluntarily provided the 
        information, the sex, age, political preference or lack of 
        preference, status with regard to disability, race, and national 
        origin of those members; 
           (8) the dates of commencement and expiration of membership 
        terms and the expiration date of the agency, if any; 
           (9) the compensation of members and appropriations or other 
        money available to the agency; 
           (10) the name of the state agency or other entity, if any, 
        required to provide staff or administrative support to the 
        agency; 
           (11) the regular meeting schedule, if any, and the 
        approximate number of hours a month of meetings or other 
        activities required of members; and 
           (12) a brief statement of the goal or purpose of the 
        agency, along with a summary of what an existing agency has 
        done, or what a newly established agency plans to do to achieve 
        its goal or purpose. 
           (b) The chair of an existing agency shall provide 
        information, covering the fiscal year in which it is 
        registering, on the number of meetings it has held, its 
        expenses, and the number of staff hours, if any, devoted to its 
        support.  The chair shall also, if necessary, update any of the 
        information previously provided in accordance with paragraph (a).
           (c) The secretary shall provide forms for the reporting of 
        information required by this subdivision and may provide for 
        reporting by electronic means. 
           Sec. 12.  Minnesota Statutes 1996, section 16A.10, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of 
        each even-numbered year, an agency must file the following with 
        the commissioner:  
           (1) budget and departmental earnings estimates for the most 
        recent and current fiscal years; 
           (2) its upcoming biennial budget and departmental earnings 
        estimates; 
           (3) a comprehensive and integrated statement of agency 
        missions and outcome and performance measures; and 
           (4) a concise explanation of any planned changes in the 
        level of services or new activities. 
           The commissioner shall prepare and file the budget 
        estimates for an agency failing to file them.  By November 30, 
        the commissioner shall send the final budget format, 
        departmental earnings report, agency budget plans or requests 
        for the next biennium, and copies of the filed material to the 
        ways and means and finance committees, except that the 
        commissioner shall not be required to transmit information that 
        identifies executive branch budget decision items.  At this 
        time, a list of each employee's name, title, and salary must be 
        available to the legislature, either on paper or through 
        electronic retrieval. 
           Sec. 13.  Minnesota Statutes 1996, section 16A.103, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
        February and November each year, the commissioner shall prepare 
        and deliver to the governor and legislature a forecast of state 
        revenue and expenditures.  The forecast must assume the 
        continuation of current laws and reasonable estimates of 
        projected growth in the national and state economies and 
        affected populations.  Revenue must be estimated for all sources 
        provided for in current law.  Expenditures must be estimated for 
        all obligations imposed by law and those projected to occur as a 
        result of inflation and variables outside the control of the 
        legislature.  In determining the rate of inflation, the 
        application of inflation, and the other variables to be included 
        in the expenditure part of the forecast, the commissioner must 
        consult with the chair of the senate state government finance 
        committee, the chair of the house committee on ways and means, 
        and house and senate fiscal staff.  In addition, the 
        commissioner shall forecast Minnesota personal income for each 
        of the years covered by the forecast and include these estimates 
        in the forecast documents.  A forecast prepared during the first 
        fiscal year of a biennium must cover that biennium and the next 
        biennium.  A forecast prepared during the second fiscal year of 
        a biennium must cover that biennium and the next two bienniums. 
           Sec. 14.  Minnesota Statutes 1996, section 16A.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WHEN.] The governor shall submit a 
        four-part budget to the legislature.  Parts one and two, the 
        budget message and detailed operating budget, must be submitted 
        by the fourth Tuesday in January in each odd-numbered year.  
        Part three, the detailed recommendations as to capital 
        expenditure, must be submitted as follows:  agency capital 
        budget requests by June 15 July 1 of each odd-numbered year; 
        preliminary governor's recommendations by September 1 of each 
        odd-numbered year;, and final governor's recommendations by 
        February 1 January 15 of each even-numbered year.  Part four, 
        the detailed recommendations as to information technology 
        expenditure, must be submitted at the same time the governor 
        submits the budget message to the legislature. 
           Sec. 15.  Minnesota Statutes 1996, section 16A.11, 
        subdivision 3b, is amended 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 number and value of all contracts from the 
        previous biennium, and the anticipated total number and value of 
        all contracts for the upcoming biennium. 
           Sec. 16.  Minnesota Statutes 1996, section 16A.11, 
        subdivision 3c, is amended to read: 
           Subd. 3c.  [PART FOUR; DETAILED INFORMATION TECHNOLOGY 
        BUDGET.] The detailed information technology budget must include 
        recommendations for information technology projects to be funded 
        during the next biennium and planning estimates for an 
        additional two biennia.  It must be submitted with projects 
        ranked in order of importance among all projects as determined 
        by the governor. 
           Sec. 17.  Minnesota Statutes 1996, section 16A.1285, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTIES OF THE COMMISSIONER OF FINANCE.] The 
        commissioner of finance shall classify, monitor, analyze, and 
        report all departmental earnings that fall within the definition 
        established in subdivision 1.  Specifically, the commissioner 
        shall: 
           (1) establish and maintain a classification system that 
        clearly defines and distinguishes categories and types of 
        departmental earnings and takes into account the purpose of the 
        various earnings types and the extent to which various earnings 
        types serve a public or private interest; 
           (2) prepare a biennial report that documents collection 
        costs, purposes, and yields of all departmental earnings, the 
        report to be submitted to the legislature on or before November 
        30 of each even-numbered year the fourth Tuesday in January in 
        each odd-numbered year and to include estimated data for the 
        year in which the report is prepared, actual data for the two 
        years immediately before, and estimates for the two years 
        immediately following; and 
           (3) prepare and maintain a detailed directory of all 
        departmental earnings. 
           Sec. 18.  Minnesota Statutes 1996, 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 use general fund cash 
        reserves 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.  The 
        commissioner may advance general fund cash reserves to 
        nongeneral fund accounts where the receipts from other 
        governmental units cannot be collected within the budget period. 
           Sec. 19.  Minnesota Statutes 1996, section 16A.15, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ALLOTMENT AND ENCUMBRANCE.] (a) A payment may 
        not be made without prior obligation.  An obligation may not be 
        incurred against any fund, allotment, or appropriation unless 
        the commissioner has certified a sufficient unencumbered balance 
        or the accounting system shows sufficient allotment or 
        encumbrance balance in the fund, allotment, or appropriation to 
        meet it.  The commissioner shall determine when the accounting 
        system may be used to incur obligations without the 
        commissioner's certification of a sufficient unencumbered 
        balance.  An expenditure or obligation authorized or incurred in 
        violation of this chapter is invalid and ineligible for payment 
        until made valid.  A payment made in violation of this chapter 
        is illegal.  An employee authorizing or making the payment, or 
        taking part in it, and a person receiving any part of the 
        payment, are jointly and severally liable to the state for the 
        amount paid or received.  If an employee knowingly incurs an 
        obligation or authorizes or makes an expenditure in violation of 
        this chapter or takes part in the violation, the violation is 
        just cause for the employee's removal by the appointing 
        authority or by the governor if an appointing authority other 
        than the governor fails to do so.  In the latter case, the 
        governor shall give notice of the violation and an opportunity 
        to be heard on it to the employee and to the appointing 
        authority.  A claim presented against an appropriation without 
        prior allotment or encumbrance may be made valid on 
        investigation, review, and approval by the commissioner agency 
        head in accordance with the commissioner's policy, if the 
        services, materials, or supplies to be paid for were actually 
        furnished in good faith without collusion and without intent to 
        defraud.  The commissioner may then draw a warrant to pay the 
        claim just as properly allotted and encumbered claims are paid. 
           (b) The commissioner may approve payment for materials and 
        supplies in excess of the obligation amount when increases are 
        authorized by section 16B.07, subdivision 2. 
           (c) To minimize potential construction delay claims, an 
        agency with a project funded by a building appropriation may 
        allow a contractor to proceed with supplemental work within the 
        limits of the appropriation before money is encumbered.  Under 
        this circumstance, the agency may requisition funds and allow 
        contractors to expeditiously proceed with a construction 
        sequence.  While the contractor is proceeding, the agency shall 
        immediately act to encumber the required funds. 
           Sec. 20.  Minnesota Statutes 1996, section 16A.642, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REPORTS.] (a) The commissioner of finance 
        shall report to the chairs of the senate committee on finance 
        and the house of representatives committees on ways and means 
        and on capital investment by February 1 of each even-numbered 
        odd-numbered year on the following: 
           (1) all state building projects for which bonds have been 
        authorized and issued by a law enacted more than seven years 
        before February 1 of that even-numbered year and of which 20 
        percent or less of a project's authorization has been encumbered 
        or otherwise obligated for the purpose stated in the law 
        authorizing the issue; and 
           (2) all state bonds authorized and issued for purposes 
        other than building projects reported under clause (1), by a law 
        enacted more than seven years before February 1 of that 
        even-numbered year, and the amount of any balance that is 
        unencumbered or otherwise not obligated for the purpose stated 
        in the law authorizing the issue. 
           (1) all laws authorizing the issuance of state bonds for 
        state or local government building projects enacted more than 
        five years before February 1 of that odd-numbered year; the 
        projects authorized to be acquired and constructed with the bond 
        proceeds for which less than 100 percent of the authorized total 
        cost has been expended, encumbered, or otherwise obligated; the 
        cost of contracts to be let in accordance with existing plans 
        and specifications shall be considered expended for this report; 
        and the amount of bonds not issued and bond proceeds held but 
        not previously expended, encumbered, or otherwise obligated for 
        these projects; and 
           (2) all laws authorizing the issuance of state bonds for 
        state or local government programs or projects other than those 
        described in clause (1), enacted more than five years before 
        February 1 of that odd-numbered year; and the amount of bonds 
        not issued and bond proceeds held but not previously expended, 
        encumbered, or otherwise obligated for these programs and 
        projects. 
           (b) The commissioner shall also report on bond 
        authorizations or bond proceed balances that may be canceled 
        because projects have been canceled, completed, or otherwise 
        concluded, or because the purposes for which the bonds were 
        authorized or issued have been canceled, completed, or otherwise 
        concluded.  The bond authorizations or bond proceed balances 
        that are unencumbered or otherwise not obligated that are 
        reported by the commissioner under this subdivision are 
        canceled, effective July 1 of the year of the report, unless 
        specifically reauthorized by act of the legislature. 
           Sec. 21.  Minnesota Statutes 1996, section 16A.642, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [APPLICATION OF UNUSED BOND PROCEEDS.] All 
        canceled bond proceeds shall be transferred to the state bond 
        fund and used to pay or redeem bonds from which they were 
        derived. 
           Sec. 22.  Minnesota Statutes 1996, section 16B.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADVISORY COUNCIL.] A small business and targeted 
        group procurement advisory council is created.  The council 
        consists of 13 members appointed by the commissioner of 
        administration.  A chair of the advisory council shall be 
        elected from among the members.  The appointments are subject to 
        the appointments program provided by section 15.0597.  The 
        terms, compensation, and removal of members are as provided in 
        section 15.059.  Notwithstanding section 15.059, the council 
        does not expire until June 30, 1998. 
           Sec. 23.  Minnesota Statutes 1996, section 16B.24, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RENTING OUT STATE PROPERTY.] (a)  [AUTHORITY.] 
        The commissioner may rent out state property, real or personal, 
        that is not needed for public use, if the rental is not 
        otherwise provided for or prohibited by law.  The property may 
        not be rented out for more than five years at a time without the 
        approval of the state executive council and may never be rented 
        out for more than 25 years.  A rental agreement may provide that 
        the state will reimburse a tenant for a portion of capital 
        improvements that the tenant makes to state real property if the 
        state does not permit the tenant to renew the lease at the end 
        of the rental agreement. 
           (b)  [RESTRICTIONS.] Paragraph (a) does not apply to state 
        trust fund lands, other state lands under the jurisdiction of 
        the department of natural resources, lands forfeited for 
        delinquent taxes, lands acquired under section 298.22, or lands 
        acquired under section 41.56 which are under the jurisdiction of 
        the department of agriculture.  
           (c)  [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
        Chapel, located within the boundaries of Fort Snelling State 
        Park, is available for use only on payment of a rental fee.  The 
        commissioner shall establish rental fees for both public and 
        private use.  The rental fee for private use by an organization 
        or individual must reflect the reasonable value of equivalent 
        rental space.  Rental fees collected under this section must be 
        deposited in the general fund.  
           (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
        shall establish rental rates for all living accommodations 
        provided by the state for its employees.  Money collected as 
        rent by state agencies pursuant to this paragraph must be 
        deposited in the state treasury and credited to the general fund.
           (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
        AGENCIES.] The commissioner may lease portions of the 
        state-owned buildings in the capitol complex, the capitol square 
        building, the health building, the Duluth government center, and 
        the building at 1246 University Avenue, St. Paul, Minnesota, to 
        state agencies and the court administrator on behalf of the 
        judicial branch of state government and charge rent on the basis 
        of space occupied.  Notwithstanding any law to the contrary, all 
        money collected as rent pursuant to the terms of this section 
        shall be deposited in the state treasury.  Money collected as 
        rent to recover the depreciation and bond interest costs of a 
        building funded from the state bond proceeds fund shall be 
        credited to the general fund.  Money collected as rent to 
        recover capital expenditures from capital asset preservation and 
        replacement appropriations and statewide building access 
        appropriations shall be credited to a segregated account in a 
        special revenue fund.  Money in the account is appropriated to 
        the commissioner to be expended for asset preservation projects 
        as determined by the commissioner.  Money collected as rent to 
        recover the depreciation cost and interest costs of a building 
        built with other state dedicated funds shall be credited to the 
        dedicated fund which funded the original acquisition or 
        construction.  All other money received shall be credited to the 
        general services revolving fund. 
           Sec. 24.  [16B.275] [CAPITOL AREA CAFETERIAS.] 
           In entering into contracts for operation of cafeterias in 
        the capitol complex, the commissioner must attempt to ensure the 
        department does not receive revenues in excess of those needed 
        to operate and maintain the cafeteria space.  
           Sec. 25.  Minnesota Statutes 1996, section 16B.35, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [CONTRACTOR'S BOND NOT REQUIRED.] Sections 574.26 
        to 574.32 do not apply to this section. 
           Sec. 26.  Minnesota Statutes 1996, section 16B.70, 
        subdivision 2, is amended to read: 
           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 money 
        collected by the commissioner through surcharges and other fees 
        prescribed by sections 16B.59 to 16B.75, which are payable to 
        the state, must be paid shall be deposited in the state 
        government special revenue fund and is appropriated to the 
        commissioner who shall deposit them in the state treasury for 
        credit to a special revenue fund for the purpose of 
        administering and enforcing the state building code under 
        sections 16B.59 to 16B.75. 
           Sec. 27.  [16B.93] [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] For purposes of sections 
        16B.93 to 16B.96, the terms in this section have the meanings 
        given them. 
           Subd. 2.  [CONTRACTOR.] "Contractor" means an individual, 
        business entity, or other private organization that is awarded a 
        contract by the commissioner to negotiate and administer the 
        price contracts for prescription drugs under section 16B.94, 
        subdivision 2. 
           Subd. 3.  [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING 
        ALLIANCE OR NONGOVERNMENTAL ALLIANCE.] "Nongovernmental 
        pharmaceutical contracting alliance" or "nongovernmental 
        alliance" means the alliance established and administered by the 
        commissioner under the authority granted in section 16B.94. 
           Subd. 4.  [MANUFACTURER.] "Manufacturer" means a 
        manufacturer as defined under section 151.44, paragraph (c). 
           Subd. 5.  [PRESCRIPTION DRUG.] "Prescription drug" means a 
        drug as defined in section 151.44, paragraph (d). 
           Subd. 6.  [PURCHASER.] "Purchaser" means a pharmacy as 
        defined in section 151.01, subdivision 2, including pharmacies 
        operated by health maintenance organizations and hospitals. 
           Subd. 7.  [SELLER.] "Seller" means a person, other than a 
        manufacturer, who sells or distributes drugs to purchasers or 
        other sellers within the state. 
           Sec. 28.  [16B.94] [NONGOVERNMENTAL PHARMACEUTICAL 
        CONTRACTING ALLIANCE.] 
           Subdivision 1.  [ESTABLISHMENT AND ADMINISTRATION.] The 
        commissioner, in consultation with appropriate experts on 
        pharmaceutical pricing, shall establish and administer a 
        nongovernmental pharmaceutical contracting alliance.  The 
        nongovernmental alliance shall negotiate contracts for 
        prescription drugs with manufacturers and sellers and shall make 
        the contract prices negotiated available to purchasers.  The 
        commissioner shall select the prescription drugs for which price 
        contracts are negotiated.  The commissioner shall, to the 
        greatest extent feasible, operate the alliance using the 
        administrative and contracting procedures of the Minnesota 
        multistate governmental contracting alliance for pharmaceuticals 
        administered by the commissioner under the authority granted in 
        section 471.59.  The commissioner may negotiate a price 
        differential based on volume purchasing and may also grant 
        multiple awards. 
           Subd. 2.  [USE OF CONTRACTOR.] The commissioner may 
        contract with an individual, business entity, or other private 
        organization to serve as a contractor to negotiate and 
        administer the price contracts for prescription drugs.  In 
        developing requirements for the contractor, the commissioner 
        shall consult with appropriate experts on pharmaceutical pricing.
           Subd. 3.  [ADMINISTRATIVE COSTS.] The commissioner may 
        charge manufacturers and sellers that enter into prescription 
        drug price contracts with the commissioner under subdivision 1 a 
        fee to cover the commissioner's expenses in negotiating and 
        administering the price contracts.  The fee established shall 
        have the force and effect of law if the requirements of section 
        14.386, paragraph (a), are met.  Section 14.386, paragraph (b), 
        does not apply.  Fees collected by the commissioner under this 
        subdivision must be deposited in the state treasury and credited 
        to a special account.  Money in the account is appropriated to 
        the commissioner to pay the costs of negotiating and 
        administering price contracts under this section. 
           Subd. 4.  [EXPANSION TO OTHER STATES.] The commissioner may 
        expand the nongovernmental alliance to other states and make the 
        contract prices negotiated available to non-Minnesota purchasers.
           Sec. 29.  [16B.95] [STATE CONTRACT PRICE.] 
           Subdivision 1.  [MANUFACTURER AND SELLER REQUIREMENT.] A 
        manufacturer or seller that contracts with the commissioner 
        shall make the contract price negotiated available to all 
        purchasers.  
           Subd. 2.  [PURCHASER REQUIREMENT.] The commissioner shall 
        require purchasers that purchase prescription drugs at the 
        contract price to pass at least 75 percent of the savings 
        resulting from purchases at the negotiated contract price to 
        consumers.  The commissioner may require a purchaser that plans 
        to purchase prescription drugs at the contract price negotiated 
        by the commissioner to submit any information regarding 
        prescription drug purchase projections the commissioner 
        determines is necessary for contract price negotiations. 
           Sec. 30.  [16B.96] [NONDISCRIMINATION.] 
           A health plan company, as defined in section 62Q.01, shall 
        not discriminate against a purchaser for taking advantage of the 
        contract price negotiated by the commissioner. 
           Sec. 31.  [43A.046] [STAFF REDUCTIONS.] 
           In order to maximize delivery of services to the public, if 
        layoffs of state employees are necessary, 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. 
           Sec. 32.  [43A.047] [CONTRACTED SERVICES.] 
           (a) Executive agencies, including the Minnesota state 
        colleges and universities system, must demonstrate that they 
        cannot use available staff before hiring outside consultants or 
        services.  If use of consultants is necessary, agencies are 
        encouraged to negotiate contracts that will involve permanent 
        staff, so as to upgrade and maximize training of state employees.
           (b) If agencies reduce operating budgets, agencies must 
        give priority to reducing spending on professional and technical 
        service contracts before laying off permanent employees. 
           (c) Agencies must report to senate finance and house ways 
        and means committees by August 1 each year on implementation of 
        this section during the previous fiscal year.  The reports must 
        include amounts spent on professional and technical service 
        contracts during the previous fiscal year. 
           Sec. 33.  Minnesota Statutes 1996, section 43A.17, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MEDICAL SPECIALISTS.] (a) The commissioner may 
        without regard to subdivision 1 establish special salary rates 
        and plans of compensation designed to attract and retain 
        exceptionally qualified doctors of medicine.  These rates and 
        plans shall be included in the commissioner's plan.  In 
        establishing salary rates and eligibility for nomination for 
        payment at special rates, the commissioner shall consider the 
        standards of eligibility established by national medical 
        specialty boards where appropriate.  The incumbents assigned to 
        these special ranges shall be excluded from the collective 
        bargaining process. 
           (b) The commissioner may without regard to subdivision 1, 
        but subject to collective bargaining agreements or compensation 
        plans, establish special salary rates designed to attract and 
        retain exceptionally qualified information systems staff. 
           Sec. 34.  Minnesota Statutes 1996, section 43A.38, 
        subdivision 4, is amended to read: 
           Subd. 4.  [USE OF STATE PROPERTY.] (a) An employee shall 
        not use or allow the use of state time, supplies or state-owned 
        or leased property and equipment for the employee's private 
        interests or any other use not in the interest of the state, 
        except as provided by law. 
           (b) An employee may use state time, property, or equipment 
        to communicate electronically with other persons including, but 
        not limited to, elected officials, the employer, or an exclusive 
        bargaining representative under chapter 179A, provided this use, 
        including the value of the time spent, results in no incremental 
        cost to the state or results in an incremental cost that is so 
        small as to make accounting for it unreasonable or 
        administratively impracticable. 
           (c) The commissioners of administration and employee 
        relations shall issue a statewide policy on the use of 
        electronic mail and other forms of electronic communications by 
        executive branch state employees.  The policy is not subject to 
        the provisions of chapter 14 or 179A.  Appointing authorities in 
        the legislative and judicial branches shall issue policies on 
        these issues for their employees.  The policies shall permit 
        state employees to make reasonable use of state time, property, 
        and equipment for personal communications and shall address 
        issues of privacy, content of communications, and the definition 
        of reasonable use as well as other issues the commissioners and 
        appointing authorities identify as necessary and relevant. 
           Sec. 35.  [62J.685] [PRESCRIPTION DRUG PRICE DISCLOSURE.] 
           By January 1, 1998, and annually thereafter, a health plan 
        company or hospital licensed under chapter 144 must submit to 
        the attorney general the total amount of:  (1) aggregate 
        purchases of prescription drugs, and (2) discount, rebate or 
        other payment received during the previous calendar year for 
        aggregate purchases of prescription drugs, including any fee 
        associated with education, data collection, research, training 
        or market share movement received from a manufacturer as defined 
        under section 151.44, paragraph (c), or wholesale drug 
        distributor as defined under section 151.44, paragraph (d).  The 
        identification of individual manufacturers or wholesalers or 
        specific drugs is not required.  The attorney general shall make 
        this information available to the public through the information 
        clearinghouse under section 62J.2930. 
           Sec. 36.  Minnesota Statutes 1996, section 116P.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] (a) A legislative commission 
        on Minnesota resources of 16 20 members is created, consisting 
        of the chairs of the house and senate committees on environment 
        and natural resources or designees appointed for the terms of 
        the chairs, the chairs of the house and senate committees on 
        environment and natural resources finance or designees appointed 
        for the terms of the chairs, the chairs of the house ways and 
        means and senate finance committees or designees appointed for 
        the terms of the chairs, six seven members of the senate 
        appointed by the subcommittee on committees of the committee on 
        rules and administration, and six seven members of the house 
        appointed by the speaker.  
           At least two three members from the senate and two three 
        members from the house must be from the minority caucus.  
        Members are entitled to reimbursement for per diem expenses plus 
        travel expenses incurred in the services of the commission.  
           (b) Members shall appoint a chair who shall preside and 
        convene meetings as often as necessary to conduct duties 
        prescribed by this chapter. 
           (c) Members shall serve on the commission until their 
        successors are appointed. 
           (d) Vacancies occurring on the commission shall not affect 
        the authority of the remaining members of the commission to 
        carry out their duties, and vacancies shall be filled in the 
        same manner under paragraph (a). 
           Sec. 37.  Minnesota Statutes 1996, section 138.31, is 
        amended by adding a subdivision to read: 
           Subd. 14.  "Qualified professional archaeologist" means an 
        archaeologist who meets the United States Secretary of the 
        Interior's professional qualification standards in Code of 
        Federal Regulations, title 36, part 61, appendix A, or 
        subsequent revisions. 
           Sec. 38.  Minnesota Statutes 1996, section 138.35, is 
        amended to read: 
           138.35 [STATE ARCHAEOLOGIST.] 
           Subdivision 1.  [APPOINTMENT.] The state archaeologist 
        shall be a qualified professional archaeologist who meets the 
        United States Secretary of the Interior's professional 
        qualification standards in Code of Federal Regulations, title 
        36, part 61, appendix A.  The state archaeologist shall be paid 
        a salary in the range of salaries paid to comparable state 
        employees in the classified service.  The state archaeologist 
        may not be employed by the Minnesota historical society.  The 
        state archaeologist shall be appointed by the board executive 
        council of the Minnesota historical society in consultation with 
        the Indian affairs council for a four-year term. to perform the 
        duties in sections 138.31 to 138.42.  The position is in the 
        unclassified service in the executive branch and is subject to 
        chapter 43A but not chapter 179A.  The compensation and terms 
        and conditions of employment are as provided by section 43A.18, 
        subdivision 3.  The state archaeologist's salary shall be 
        established by the commissioner of employee relations within a 
        range established by the commissioner of employee relations.  
           Subd. 1a.  [ADMINISTRATIVE SUPPORT; STAFF.] The 
        commissioner of administration shall provide the state 
        archaeologist with necessary administrative services.  State 
        agencies shall provide the state archaeologist upon request with 
        advisory staff services on matters relating to the duties and 
        jurisdiction of the state archaeologist.  The state 
        archaeologist shall hire staff and maintain offices as necessary 
        to perform the duties in sections 138.31 to 138.42.  Staff shall 
        serve in the unclassified service and be governed by section 
        43A.18, subdivision 2. 
           Subd. 1b.  [CONTRACTS; VOLUNTEERS; GRANTS AND GIFTS.] The 
        state archaeologist may contract with the federal government, 
        local governmental units, other states, the university and other 
        educational institutions, and private persons or organizations 
        as necessary in the performance of the duties in sections 138.31 
        to 138.42.  Contracts made under this section for professional 
        services shall not be subject to chapter 16B, as it relates to 
        competitive bidding.  The state archaeologist may recruit, 
        train, and accept, without regard to personnel laws or rules, 
        the services of individuals as volunteers for or in aid of 
        performance of the state archaeologist's duties, and may provide 
        for the incidental expenses of volunteers, such as 
        transportation, lodging, and subsistence.  The state 
        archaeologist may apply for, receive, and expend grants and 
        gifts of money consistent with the powers and duties in sections 
        138.31 to 138.42.  Any money so received is appropriated for the 
        purpose for which it was granted.  
           Subd. 2.  [DUTIES OF STATE ARCHAEOLOGIST.] The duties of 
        the state archaeologist shall include the following: 
           (a) to sponsor, engage in, and direct fundamental research 
        into the archaeology of this state and to encourage and 
        coordinate archaeological research and investigation undertaken 
        within the state.; 
           (b) to cooperate with other agencies of the state which may 
        have authority in areas where state sites are located, or which 
        may have the responsibility for marking state sites, or 
        arranging for their being viewed by the public.; 
           (c) to protect to the extent possible and to encourage the 
        preservation of archaeological sites located on privately owned 
        property.; 
           (d) to retrieve and protect objects of archaeological 
        significance discovered by field archaeology on state sites or 
        discovered during the course of any public construction or 
        demolition work, and, to the extent possible, those discovered 
        during the course of any other construction or demolition work.; 
           (e) to obtain for the state other objects of archaeological 
        significance, and data relating thereto.; 
           (f) to cooperate with the historical society, the 
        university, and other custodians to preserve objects of 
        archaeological significance, together with the data relating 
        thereto.; 
           (g) to disseminate archaeological facts through the 
        publication of reports of archaeological research conducted 
        within the state.; 
           (h) to approve licensing of qualified persons professional 
        archaeologists to engage in field archaeology on state sites, as 
        provided in section 138.36,; and 
           (i) to otherwise carry out and enforce sections 138.31 to 
        138.42. 
           Subd. 3.  [EMPLOYMENT OF PERSONNEL.] The state 
        archaeologist may employ personnel to assist in carrying out the 
        state archaeologist's duties and may spend state appropriations 
        to compensate such personnel. 
           Sec. 39.  Minnesota Statutes 1996, section 138.91, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [SALARY SUPPLEMENT.] The Minnesota humanities 
        commission is eligible for a salary supplement in the same 
        manner as state agencies.  The commissioner of finance shall 
        determine the amount of the salary supplement based on available 
        appropriations.  Employees of the commission shall be paid in 
        accordance with the appropriate pay plan.  
           Sec. 40.  Minnesota Statutes 1996, section 151.21, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  A pharmacy must post a sign in a conspicuous 
        location and in a typeface easily seen at the counter where 
        prescriptions are dispensed stating:  "In order to save you 
        money, this pharmacy will substitute whenever possible an 
        FDA-approved, less expensive, generic drug product, which is 
        therapeutically equivalent to and safely interchangeable with 
        the one prescribed by your doctor, unless you object to this 
        substitution. 
           Sec. 41.  Minnesota Statutes 1996, section 176.611, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [SETTLEMENT AND CONTINGENCY RESERVE ACCOUNT.] To 
        reduce long-term costs, minimize impairment to agency operations 
        and budgets, and distribute risk of one-time catastrophic 
        claims, the commissioner of employee relations shall maintain a 
        separate account within the state compensation revolving fund.  
        The account shall be used to pay for lump-sum or annuitized 
        settlements, structured claim settlements, and one-time large, 
        legal, catastrophic medical, indemnity, or other irregular claim 
        costs that might otherwise pose a significant burden for 
        agencies.  The commissioner of employee relations, with the 
        approval of the commissioner of finance, may establish criteria 
        and procedures for payment from the account on an agency's 
        behalf.  The commissioner of employee relations may assess 
        agencies on a reimbursement or premium basis from time-to-time 
        to ensure adequate account reserves.  The account consists of 
        appropriations from the general fund, receipts from billings to 
        agencies, and credited investment gains or losses attributable 
        to balances in the account.  The state board of investment shall 
        invest the assets of the account according to section 11A.24. 
           Sec. 42.  [197.79] [VETERANS' BONUS PROGRAM.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, the following terms have the meanings given them. 
           (a) "Applicant" means a veteran or a veteran's guardian, 
        conservator, or personal representative or a beneficiary or a 
        beneficiary's guardian, conservator, or personal representative 
        who has filed an application with the commissioner for a bonus 
        under this section. 
           (b) "Application" means a request for a bonus payment by a 
        veteran, a veteran's beneficiary, or a veteran's guardian, 
        conservator, or personal representative through submission of 
        written information on a form designed by the commissioner for 
        this purpose. 
           (c) "Beneficiary" means in relation to a deceased veteran 
        and in the order named: 
           (1) the surviving spouse, if not remarried; 
           (2) the children of the veteran, if there is no surviving 
        spouse or the surviving spouse has remarried; 
           (3) the veteran's surviving parent or parents; 
           (4) the veteran's surviving sibling or siblings; or 
           (5) the veteran's estate. 
           (d) "Commissioner" means the commissioner of the department 
        of veterans affairs. 
           (e) "Department" means the department of veterans affairs. 
           (f) "Eligibility period for the bonus" means the period 
        from August 2, 1990, to July 31, 1991. 
           (g) "Guardian" or "conservator" means the legally appointed 
        representative of a minor beneficiary or incompetent veteran, 
        the chief officer of a hospital or institution in which the 
        incompetent veteran is placed if the officer is authorized to 
        accept money for the benefit of the minor or incompetent, the 
        person determined by the commissioner to be the person who is 
        legally charged with the responsibility for the care of the 
        minor beneficiary or incompetent veteran, or the person 
        determined by the commissioner to be the person who has assumed 
        the responsibility for the care of the minor beneficiary or 
        incompetent veteran. 
           (h) "Honorable service" means honorable service in the 
        United States armed forces, as evidenced by: 
           (1) an honorable discharge; 
           (2) a general discharge under honorable conditions; 
           (3) in the case of an officer, a certificate of honorable 
        service; or 
           (4) in the case of an applicant who is currently serving in 
        active duty in the United States armed forces, a certificate 
        from an appropriate service authority that the applicant's 
        service to date has been honorable. 
           (i) "Resident veteran" means a veteran who served in active 
        duty in the United States armed forces at any time during the 
        eligibility period for the bonus, and who also: 
           (1) has been separated or discharged from the United States 
        armed forces, and whose home of record at the time of entry into 
        active duty in the United States armed forces, as indicated on 
        the person's form DD-214, is the state of Minnesota; or 
           (2) is currently serving in the United States armed forces, 
        and has a certificate from an appropriate service authority 
        stating that the person:  (i) served in active duty in the 
        United States armed forces at any time during the eligibility 
        period for the bonus; and (ii) had Minnesota as the home of 
        record at the time of entry into active duty in the United 
        States armed forces. 
           (j) "Service connected" means caused by an injury or 
        disease incurred or aggravated while on active duty, as 
        determined by the United States department of veterans affairs. 
           (k) "Veteran" has the meaning given in section 197.447, and 
        also includes: 
           (1) a person who is providing honorable service on active 
        duty in the United States armed forces and has not been 
        separated or discharged; or 
           (2) a member of a reserve component of the armed forces of 
        the United States, including the national guard, who was ordered 
        to active duty under United States Code, title 10, section 673b, 
        during the eligibility period for the bonus and who was deployed 
        to a duty station outside the state of Minnesota, as verified by 
        the appropriate service authority.  An applicant's DD-214 form 
        showing award of the Southwest Asia service medal during the 
        eligibility period for the bonus will suffice as verification. 
           "Veteran" does not include a member of the national guard 
        or the reserve components of the United States armed forces 
        ordered to active duty for the sole purpose of training. 
           Subd. 2.  [BONUS AMOUNT.] (a) For a resident veteran who 
        provided honorable service in the United States armed forces at 
        any time during the eligibility period for the bonus, the bonus 
        amount is: 
           (1) $300, if the veteran did not receive the Southwest Asia 
        service medal during the eligibility period for the bonus; 
           (2) $600, if the veteran received the Southwest Asia 
        service medal during the eligibility period for the bonus; or 
           (3) $2,000, if the veteran was eligible for the Southwest 
        Asia service medal during the eligibility period for the bonus, 
        and died during that time period as a direct result of a service 
        connected injury, disease, or condition. 
           (b) In the case of a deceased veteran, the commissioner 
        shall pay the bonus to the veteran's beneficiary. 
           (c) No payment may be made to a veteran or beneficiary who 
        has received a similar bonus payment from another state. 
           Subd. 3.  [APPLICATION PROCESS.] A veteran, or the 
        beneficiary of a veteran, entitled to a bonus may make 
        application for a bonus to the department on a form prescribed 
        by the commissioner and verified by the applicant.  If the 
        veteran is incompetent or the veteran's beneficiary is a minor 
        or incompetent, the application must be made by the person's 
        guardian or conservator.  An application must be accompanied by 
        evidence of residency, honorable service, active duty service 
        during the eligibility period for the bonus, and any other 
        information the commissioner requires.  The applicant must 
        indicate on the application form the bonus amount for which the 
        applicant expects to be eligible.  
           If the information provided in the application is 
        incomplete, the department must notify the applicant in writing 
        of that fact and must identify the items of information needed 
        to make a determination.  After notifying an applicant that the 
        person's application is incomplete, the department shall hold 
        the application open while awaiting further information from the 
        applicant, and the applicant may submit that information without 
        filing an appeal and request for review. 
           Subd. 4.  [BONUS DETERMINATION, APPEAL PROCESS, AND 
        PAYMENT.] (a) Except as provided in paragraphs (b) to (d), the 
        commissioner may not make a bonus payment to any applicant. 
           (b) Upon submission of proof to the department that an 
        applicant is entitled to payment under this section, the 
        department shall determine the amount of the bonus for which the 
        applicant is eligible.  If the department's determination of the 
        bonus amount is in agreement with, or is greater than, the 
        amount requested by the applicant in the application, the 
        commissioner shall pay to the applicant the bonus amount, as 
        determined by the department. 
           (c) If the department determines that the bonus amount for 
        an applicant is less than the amount requested in the 
        application, the department shall notify the applicant in 
        writing of its determination, and include with that notification 
        a form that the applicant may use to accept the department's 
        determination and thereby waive the right to review of that 
        determination.  A filing by the applicant of the acceptance and 
        waiver form with the department constitutes a waiver by the 
        applicant of the right to review.  Upon receipt of such 
        acceptance and waiver from the applicant, the department shall 
        pay to the applicant the bonus amount, as determined by the 
        department.  Unless an appeal is filed with the commissioner by 
        an applicant in accordance with paragraph (d), all orders, 
        decisions, and acts of the department with reference to the 
        claim of the applicant are final and conclusive upon the 
        applicant. 
           (d) Upon notification that the department's determination 
        of the bonus amount is less than the bonus amount requested by 
        the applicant in the application, the applicant may appeal the 
        department's determination and request a review by the 
        commissioner.  The appeal and request for review must be made in 
        writing within 60 days of the department's mailing of its 
        determination.  Following receipt by the department of an 
        applicant's appeal and request for review by the commissioner, 
        no payment shall be made by the department to the applicant 
        until the review has been completed.  For such review, the 
        applicant may submit additional information to supplement the 
        information provided in the application, and may request that 
        the review be conducted either:  (1) through written 
        correspondence; or (2) in person with the commissioner.  The 
        commissioner shall act upon an appeal and request for review 
        within seven working days of its receipt by the department.  
        Following review by the commissioner of the application and any 
        additional information submitted or presented by the applicant, 
        the commissioner's determination is final.  Any expenses 
        incurred by the applicant as the result of the applicant's 
        appeal and request for review are the obligation of the 
        applicant. 
           Subd. 5.  [NOTICES.] Notices and correspondence to an 
        applicant must be directed to the applicant by mail at the 
        address listed in the application.  Notices and correspondence 
        to the commissioner must be addressed to the commissioner's 
        office in St. Paul. 
           Subd. 6.  [POWERS AND DUTIES OF THE COMMISSIONER.] (a) The 
        commissioner shall determine who is the beneficiary of a 
        deceased veteran and determine who is the person who has assumed 
        the responsibility for the care of any minor or incompetent. 
           (b) The commissioner may employ persons and may incur other 
        expenses necessary to administer this section. 
           Subd. 7.  [TAX EXEMPT GIFTS.] The bonus payments provided 
        for by this section are gifts or gratuities given as a token of 
        appreciation to eligible veterans and are not compensation for 
        services rendered.  The payments are exempt from state taxation. 
           Subd. 8.  [NONASSIGNABLE; EXCEPTED FROM PROCESS.] A claim 
        for payment under this section is not assignable or subject to 
        garnishment, attachment, or levy of execution. 
           Subd. 9.  [PENALTIES.] A person who knowingly makes a false 
        statement relating to a material fact in support of a claim for 
        a bonus under this section is guilty of a misdemeanor. 
           Subd. 10.  [DEADLINE FOR APPLICATIONS.] The application 
        period for the bonus program established in this section shall 
        be November 1, 1997, to June 30, 1999.  The department may not 
        receive or accept new applications after June 30, 1999. 
           Sec. 43.  Minnesota Statutes 1996, section 327.33, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] The commissioner shall by rule establish 
        reasonable fees for seals, installation seals and inspections 
        which are sufficient to cover all costs incurred in the 
        administration of sections 327.31 to 327.35.  The commissioner 
        shall also establish by rule a monitoring inspection fee in an 
        amount that will comply with the secretary's fee distribution 
        program.  This monitoring inspection fee shall be an amount paid 
        by the manufacturer for each manufactured home produced in 
        Minnesota.  The monitoring inspection fee shall be paid by the 
        manufacturer to the secretary.  The rules of the fee 
        distribution program require the secretary to distribute the 
        fees collected from all manufactured home manufacturers among 
        states approved and conditionally approved based on the number 
        of new manufactured homes whose first location after leaving the 
        manufacturer is on the premises of a distributor, dealer or 
        purchaser in that state.  All fees received money collected by 
        the commissioner shall be deposited in the state treasury and 
        credited to the general fund through fees prescribed by sections 
        327.31 to 327.36 shall be deposited in the state government 
        special revenue fund and is appropriated to the commissioner for 
        the purpose of administering and enforcing the manufactured home 
        building code under sections 327.31 to 327.36. 
           Sec. 44.  Minnesota Statutes 1996, section 327B.04, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FEES; LICENSES; WHEN GRANTED.] Each application 
        for a license or license renewal must be accompanied by a fee in 
        an amount established by the commissioner by rule pursuant to 
        section 327B.10, which shall be paid into the state treasury and 
        credited to the general fund.  The fees shall be set in an 
        amount which over the fiscal biennium will produce revenues 
        approximately equal to the expenses which the commissioner 
        expects to incur during that fiscal biennium while administering 
        and enforcing sections 327B.01 to 327B.12.  All money collected 
        by the commissioner through fees prescribed in sections 327B.01 
        to 327B.12 shall be deposited in the state government special 
        revenue fund and is appropriated to the commissioner for 
        purposes of administering and enforcing the provisions of this 
        chapter.  The commissioner shall grant or deny a license 
        application or a renewal application within 60 days of its 
        filing.  If the license is granted, the commissioner shall 
        license the applicant as a dealer or manufacturer for the 
        remainder of the calendar year.  Upon application by the 
        licensee, the commissioner shall renew the license for a two 
        year period, if:  
           (a) the renewal application satisfies the requirements of 
        subdivisions 3 and 4; 
           (b) the renewal applicant has made all listings, 
        registrations, notices and reports required by the commissioner 
        during the preceding year; and 
           (c) the renewal applicant has paid all fees owed pursuant 
        to sections 327B.01 to 327B.12 and all taxes, arrearages, and 
        penalties owed to the state.  
           Sec. 45.  Minnesota Statutes 1996, section 349.163, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INSPECTION OF MANUFACTURERS.] Employees of the 
        board and the division of gambling enforcement may inspect the 
        books, records, inventory, and business premises of a licensed 
        manufacturer without notice during the normal business hours of 
        the manufacturer.  The board may charge a manufacturer for the 
        actual cost of conducting scheduled or unscheduled inspections 
        of the manufacturer's facilities, where the amount charged to 
        the manufacturer for such inspections in any year does not 
        exceed $7,500.  The board shall deposit in a separate account in 
        the state treasury all money received as reimbursement for the 
        costs of inspections.  Until July 1, 1999, money in the account 
        is appropriated to the board to pay the costs of the inspections.
           Sec. 46.  Minnesota Statutes 1996, section 356.865, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COST STATE APPROPRIATION.] The cost of the 
        payments made under this section is the responsibility of the 
        state.  Payments under this section are the responsibility of 
        the Minneapolis employees retirement fund.  A separate state aid 
        is provided toward the level dollar amortized cost of the 
        payments.  For state fiscal years 1992 to 2001 inclusive, there 
        is appropriated annually $550,000 from the general fund to the 
        commissioner of finance to be added, in quarterly installments, 
        to the annual state contribution amount determined under section 
        422A.101, subdivision 3.  After fiscal year 2001, any difference 
        between the cumulative benefit amounts actually paid under this 
        section after fiscal year 1991 and the amounts paid to the 
        retirement fund by the state under this subdivision plus 
        investment earnings on the aid shall be included by the 
        retirement fund board and the actuary retained by the 
        legislative commission on pensions and retirement in determining 
        financial requirements of the fund and contributions under 
        section 422A.101. 
           Sec. 47.  Minnesota Statutes 1996, section 363.073, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE OF APPLICATION.] No department or 
        agency of the state shall accept any bid or proposal for a 
        contract or agreement or execute any contract or agreement for 
        goods or services in excess of $50,000 with any business having 
        more than 20 full-time employees, either within or outside this 
        state, on a single working day during the previous 12 months, 
        unless the firm or business has an affirmative action plan for 
        the employment of minority persons, women, and the disabled that 
        has been approved by the commissioner of human rights.  Receipt 
        of a certificate of compliance issued by the commissioner shall 
        signify that a firm or business has an affirmative action plan 
        that has been approved by the commissioner.  A certificate shall 
        be valid for a period of two years.  A municipality as defined 
        in section 466.01, subdivision 1, that receives state money for 
        any reason is encouraged to prepare and implement an affirmative 
        action plan for the employment of minority persons, women, and 
        the disabled and submit the plan to the commissioner of human 
        rights. 
           Sec. 48.  Minnesota Statutes 1996, section 422A.101, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STATE CONTRIBUTIONS.] (a) Subject to the 
        limitation set forth in paragraph (c), the state shall pay to 
        the Minneapolis employees retirement fund annually an amount 
        equal to the amount calculated under paragraph (b). 
           (b) The payment amount is an amount equal to the financial 
        requirements of the Minneapolis employees retirement fund 
        reported in the actuarial valuation of the fund prepared by the 
        commission-retained actuary pursuant to section 356.215 for the 
        most recent year but based on a target date for full 
        amortization of the unfunded actuarial accrued liabilities by 
        June 30, 2020, less the amount of employee contributions 
        required pursuant to section 422A.10, and the amount of employer 
        contributions required pursuant to subdivisions 1a, 2, and 2a.  
        Payments shall be made in four equal installments, occurring on 
        March 15, July 15, September 15, and November 15 annually.  
           (c) The annual state contribution under this subdivision 
        may not exceed $10,455,000 through fiscal year 1998 and 
        $9,000,000 beginning in fiscal year 1999, plus the cost of the 
        annual supplemental benefit determined under section 356.865. 
           (b) (d) If the amount determined under paragraph (a) (b) 
        exceeds the limitation on the state payment in paragraph 
        (a) $11,910,000, the excess must be allocated to and paid to the 
        fund by the employers identified in subdivisions 1a and 2, other 
        than units of metropolitan government.  Each employer's share of 
        the excess is proportionate to the employer's share of the 
        fund's unfunded actuarial accrued liability as disclosed in the 
        annual actuarial valuation prepared by the actuary retained by 
        the legislative commission on pensions and retirement compared 
        to the total unfunded actuarial accrued liability attributed to 
        all employers identified in subdivisions 1a and 2, other than 
        units of metropolitan government.  Payments must be made in 
        equal installments as set forth in paragraph (a) (b).  
           Sec. 49.  [465.803] [REPAYMENT OF GRANTS.] 
           Subdivision 1.  [REPAYMENT PROCEDURES.] Without regard to 
        whether a grant recipient offered to repay the grant in its 
        original application, as part of a grant awarded under section 
        465.798, 465.799, or 465.801, the board may require the grant 
        recipient to repay all or part of the grant if the board 
        determines the project funded by the grant resulted in an actual 
        savings for the participating local units of government.  The 
        grant agreement must specify how the savings are to be 
        determined and the period of time over which the savings will be 
        used to calculate a repayment requirement.  The repayment of 
        grant money under this section may not exceed an amount equal to 
        the total savings achieved through the implementation of the 
        project multiplied by the total amount of the grant divided by 
        the total budget for the project and may not exceed the total 
        amount of the original grant. 
           Subd. 2.  [BONUS POINTS.] In addition to the points awarded 
        to competitive grant applications under section 465.802, the 
        board shall award additional points to any applicant that 
        projects a potential cost savings through the implementation of 
        its project and offers to repay the grant money under the 
        formula in subdivision 1. 
           Subd. 3.  [USE OF REPAYMENT REVENUE.] All grant money 
        repaid to the board under this section is appropriated to the 
        board for additional grants authorized by sections 465.798, 
        465.799, and 465.801. 
           Sec. 50.  Minnesota Statutes 1996, section 475A.06, 
        subdivision 7, is amended to read: 
           Subd. 7.  [AUTHORITY FOR BONDS; LIMIT; APPROPRIATION 
        PURPOSE; PROCEDURAL SOURCES.] The commissioner of finance is 
        authorized to sell and issue Minnesota state municipal aid bonds 
        in an aggregate principal amount not to exceed 
        $4,330,000 $1,192,295, the proceeds of which, except as provided 
        in subdivision 1, are appropriated to the state municipal bond 
        guaranty fund for the purpose of providing funds to be loaned to 
        municipalities for the acquisition and betterment of public 
        lands and buildings and other public improvements of a capital 
        nature, when needed to pay the principal of or interest on bonds 
        issued for this purpose or bonds issued to refund such 
        guaranteed bonds, in accordance with the provisions of sections 
        475A.01 to 475A.06.  The bonds shall be sold, issued, and 
        secured as provided in subdivisions 1 to 6 and in Article XI, 
        Section 7 of the Constitution. 
           Sec. 51.  [TEEN COURT PROGRAM.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, the following terms have the meanings given. 
           (a) "Minor offense" means: 
           (1) a juvenile petty offense; 
           (2) a petty misdemeanor; or 
           (3) any misdemeanor, other than a misdemeanor-level 
        violation of Minnesota Statutes, section 588.20 (contempt of 
        court), 609.224 (fifth degree assault), 609.2242 (domestic 
        assault), 609.324 (prostitution and related crimes), 609.563 
        (arson in the third degree), 609.576 (negligent fires, dangerous 
        smoking), 609.66 (dangerous weapons), or 617.23 (indecent 
        exposure), a major traffic offense, or an adult traffic offense, 
        as defined in Minnesota Statutes, section 260.193. 
           (b) "Teen" means an individual who is at least 10 years old 
        but less than 18 years old. 
           (c) "Teen court" and "teen court program" mean an 
        alternative procedure under which a local law enforcement 
        agency, county attorney, school, or probation agency may divert 
        from the juvenile court system a teen who allegedly has 
        committed a minor offense, on condition that the teen 
        voluntarily appear before and receive a disposition from a jury 
        of the teen's peers and successfully complete the terms and 
        conditions of the disposition.  These programs also may be used 
        by a school as an alternative to formal school disciplinary 
        proceedings.  
           Subd. 2.  [SUPREME COURT RULES.] The supreme court is 
        requested to adopt rules and procedures to govern the teen court 
        program that are consistent with this section. 
           Subd. 3.  [APPLICATION TO ESTABLISH TEEN COURT.] (a) Any 
        group of two or more adult sponsors may apply to the office of 
        strategic and long-range planning to establish a teen court.  
        These sponsors must be affiliated with an agency, entity, or 
        other organized program or group.  
           (b) An application to establish a teen court must include: 
           (1) the names, addresses, and telephone numbers of two or 
        more adult sponsors and a description of the entity, agency, or 
        other organized program or group with which the adult sponsors 
        are affiliated; 
           (2) the names, addresses, and telephone numbers of all 
        teens who have signed letters of commitment to participate 
        voluntarily as teen court members in the teen court program; 
           (3) a certification from the adult sponsors that adequate 
        adult sponsorship exists and that there are a sufficient number 
        of teen volunteers to make the functioning of the teen court 
        feasible and meaningful; and 
           (4) a letter of support from the judicial district court 
        administrator agreeing to help the teen court track the 
        recidivism rates of teen court participants. 
           Subd. 4.  [REFERRAL TO TEEN COURT PROGRAM.] Once the teen 
        court program has been established, it may receive referrals for 
        eligible teens from local law enforcement, county attorneys, 
        school officials, and probation agencies.  The process of 
        referral is to be established by the individual teen court 
        program, in coordination with other established teen court 
        programs in the judicial district. 
           Subd. 5.  [FEE.] The teen court program may require a teen 
        to pay a nonrefundable fee to cover the costs of administering 
        the program.  This fee must be reduced or waived for a 
        participant who does not have the ability to pay the fee. 
           Subd. 6.  [TEEN COURT PROGRAM COMPONENTS.] (a) Before a 
        teen participates in the teen court program, a teen court 
        sponsor or the referring source must: 
           (1) contact the victim, if any, of the offense, or make a 
        good faith attempt to contact the victim, if any, and the victim 
        must be advised that the victim may participate in the teen 
        court proceedings; and 
           (2) at least seven days before the teen participates in the 
        program, provide to the county attorney of the teen's residence 
        the teen's name, date of birth, and residential address and a 
        description of the offense. 
           (b) Before a teen court disposes of a case, it must 
        establish a range of dispositional alternatives for offenses 
        that is appropriate to the teen court's community.  These 
        dispositions may include the following: 
           (1) community service; 
           (2) mandatory participation in appropriate counseling, 
        appropriate treatment, law-related educational classes, or other 
        educational programs; 
           (3) a requirement that the teen defendant participate as a 
        juror in future proceedings before the teen court; 
           (4) restitution, where appropriate; and 
           (5) a fine, not to exceed the amount permitted in Minnesota 
        Statutes, section 260.195.  The fine permitted in Minnesota 
        Statutes, section 260.185, may only be imposed for misdemeanor 
        level offenses.  
           The teen court does not have the power to place a teen 
        outside the home. 
           (c) Except as provided in paragraph (d), the teen court 
        program may be used only where: 
           (1) the teen acknowledges responsibility for the offense; 
           (2) the teen voluntarily agrees to participate in the teen 
        court program; 
           (3) the judge of the teen court is a judge or an attorney 
        admitted to practice law in this state; 
           (4) the teen's parent or legal guardian accompanies the 
        teen in all teen court proceedings; 
           (5) the county attorney does not notify the teen court 
        before the teen's participation that the offense will be handled 
        in juvenile court or in a pretrial diversion program established 
        under Minnesota Statutes, section 388.24; and 
           (6) the teen court program has established a training 
        component for teen and adult volunteers. 
           (d) When a teen court operates as an alternative to a 
        school disciplinary policy, the teen's parent or legal guardian 
        must be notified of the teen's involvement in the program, 
        according to the school district's disciplinary policy.  The 
        teen's parent or legal guardian does not need to accompany the 
        teen in teen court proceedings. 
           (e) The teen court shall notify the referring source as 
        soon as possible upon discovery that the teen has failed to 
        comply with any part of the disposition imposed under paragraph 
        (b).  Either juvenile court proceedings or formal school 
        disciplinary proceedings, where applicable, or both, may be 
        commenced against a teen who fails to comply with the 
        disposition under paragraph (b). 
           Subd. 7.  [EVALUATION AND REPORTS.] (a) The results of all 
        proceedings in teen court must be reported to the office of 
        strategic and long-range planning on a form provided by that 
        office.  The teen court must submit the report no later than 
        July 15 for all activity during the first six months of the 
        calendar year and by January 15 for all activity during the last 
        six months of the preceding calendar year.  A copy of this 
        report also must be provided to the county attorney of the 
        county in which the teen court operates.  Each report must 
        include the following: 
           (1) the number of cases handled by the teen court, 
        including a breakdown of the number of cases from each referring 
        agency; 
           (2) a list of the offenses for which the teen court imposed 
        a disposition, including a breakdown showing the number of teen 
        court participants committing each type of offense; 
           (3) a list of the dispositions imposed by the teen court, 
        including a breakdown showing the number of times each 
        particular disposition was imposed; and 
           (4) information on the cases that were referred back to the 
        referring agency under subdivision 6, paragraph (e). 
           (b) Each teen court shall report to the office of strategic 
        and long-range planning by June 30 each year on its progress in 
        achieving outcome measures and indicators.  This report must 
        include an analysis of recidivism rates for teen court 
        participants, based upon a method for measuring these rates as 
        determined by the office of strategic and long-range planning. 
           (c) The office of strategic and long-range planning shall 
        assist teen court programs in developing outcome measures and 
        indicators.  These outcome measures and indicators must be 
        established before any teen court begins to impose dispositions 
        and must allow for both evaluation of each teen court program 
        and for statewide evaluation of the teen court program. 
           Subd. 8.  [ADMINISTRATION.] The office of strategic and 
        long-range planning has authority to administer funds to teen 
        court programs that comply with this section and the supreme 
        court rules adopted under this section.  The office of strategic 
        and long-range planning may receive and administer public and 
        private funds for the purpose of this section. 
           Sec. 52.  [YOUTH SPORTS PROGRAMS; CRITERIA.] 
           The Minnesota amateur sports commission shall develop a 
        plan to promote recreational programs for youth.  The proposals 
        must be for programs for which there is a demonstrated shortage 
        of access, based on needs of youth.  The plan must be based on 
        the criteria in this section. 
           (a) The programs must be intended primarily for use for 
        youth sports in the entire community and not for school athletic 
        functions. 
           (b) Programs must emphasize access for low-income youth and 
        for other youth who would not otherwise have access to the 
        programs.  
           (c) Proposals must contain a plan to ensure equitable use 
        for youth of each gender. 
           (d) To the extent possible, program grants must be 
        dispersed equitably, must be located to maximize potential for 
        full utilization, and must accommodate noncompetitive family and 
        community use for all ages in addition to use for competitive 
        youth sports. 
           (e) To the extent possible, 50 percent of all grants must 
        be awarded to communities in greater Minnesota. 
           Sec. 53.  [ADVISORY COUNCIL ON ECONOMIC FUTURE.] 
           (a) The director of the office of strategic and long-range 
        planning shall convene an advisory council on Minnesota's 
        economic future to: 
           (1) agree on a set of strategic goals to guide the state's 
        development through the year 2010; 
           (2) develop a set of indicators to measure progress toward 
        those goals; and 
           (3) develop a mechanism to renew and update strategies and 
        goals on an ongoing basis and monitor and report results to the 
        people of this state. 
           (b) The advisory council shall consist of 13 members.  Ten 
        legislators shall be appointed as follows:  three by the speaker 
        of the house of representatives, two by the minority leader of 
        the house of representatives, and five by the subcommittee on 
        committees of the committee on rules and administration of the 
        senate, two of whom must be members of the minority party or an 
        independent.  The other three members are the director of 
        strategic and long-range planning, the commissioner of finance, 
        and the commissioner of trade and economic development.  The 
        governor may designate other commissioners or agency heads to 
        serve as nonvoting members.  The speaker of the house and the 
        subcommittee on committees of the senate may appoint additional 
        legislators to serve as nonvoting members.  The advisory council 
        may consult with knowledgeable persons from the public and 
        private sectors. 
           (c) The advisory council shall report its findings and 
        recommendations to the legislature by February 15, 1998.  The 
        advisory council expires upon submission of its report.  
           Sec. 54.  [ADVISORY COUNCIL ON LOCAL GOVERNMENT.] 
           Subdivision 1.  [ESTABLISHED.] An advisory council on the 
        roles and responsibilities of local governments is established. 
           Subd. 2.  [DUTIES.] The advisory council shall study and 
        make recommendations to the legislature by July 1, 1998, on the 
        appropriate roles and responsibilities of local and regional 
        government in the metropolitan area, as defined in Minnesota 
        Statutes, section 473.121, subdivision 2.  The advisory council 
        shall examine: 
           (1) what services should be provided and what functions 
        fulfilled by local or regional government; 
           (2) what level of government is appropriate for the 
        efficient, effective, and equitable delivery of these services 
        and functions; 
           (3) what powers are needed by local and regional government 
        to deliver the services; and 
           (4) what governance structures will meet the identified 
        roles and responsibilities of local and regional government and 
        be responsive to, understandable by, and accountable to citizens.
           The advisory council may consider alternatives to the 
        existing governance structures in order to fulfill the 
        requirements of this section. 
           Subd. 3.  [MEMBERSHIP.] The advisory council consists of 25 
        members, who serve at the pleasure of the appointing authority, 
        as follows: 
           (1) four representatives of cities, appointed by the 
        association of metropolitan municipalities; 
           (2) two representatives of towns, appointed by the 
        Minnesota association of townships; 
           (3) four representatives of counties, appointed by the 
        association of Minnesota counties; 
           (4) two representatives of school districts, appointed by 
        the Minnesota school boards association; 
           (5) eight legislators; four house members, of whom two are 
        members of the majority caucus appointed by the speaker of the 
        house of representatives and two are members of the minority 
        caucus appointed by the house minority leader; and four senate 
        members, of whom two are members of the majority caucus and two 
        are members of the minority caucus, appointed by the 
        subcommittee on committees of the committee on rules and 
        administration; 
           (6) the chair of the metropolitan council, or the chair's 
        designee; and 
           (7) four public members, appointed by the governor. 
           Members must be appointed as soon as practicable after the 
        effective date of this section. 
           Subd. 4.  [FIRST MEETING; SELECTION OF A CHAIR.] A member 
        appointed by the association of metropolitan municipalities 
        shall be selected by the association to convene the first 
        meeting of the advisory council.  At the first meeting, the 
        advisory council shall select a member to serve as chair. 
           Subd. 5.  [ADMINISTRATIVE; STAFF ASSISTANCE.] The office of 
        strategic and long-range planning shall provide administrative 
        and staff assistance to the advisory council. 
           Subd. 6.  [EXPIRATION.] The advisory council established 
        under subdivision 1 expires June 30, 1999. 
           Sec. 55.  [CORPORATE SUBSIDY REFORM COMMISSION.] 
           Subdivision 1.  [ESTABLISHMENT.] (a) A bipartisan corporate 
        subsidy reform commission is created. 
           (b) The commission shall evaluate selected subsidy programs 
        and tax laws for the following: 
           (1) public purpose; including jobs, wages, and other 
        economic development benefits; 
           (2) criterion for award; and 
           (3) accountability and enforcement mechanisms used to 
        facilitate the achievement of the public purpose. 
           (c) The commission shall examine whether these subsidy 
        programs or tax laws impede competition or provide preferential 
        treatment to private enterprises. 
           Subd. 2.  [SCOPE.] The commission shall review subsidy 
        programs and tax laws including: 
           (1) tax expenditures and other tax concessions; 
           (2) direct spending and loans; 
           (3) public spending that indirectly affects the economic 
        development of the region; and 
           (4) regulation of private activity for the purpose of 
        economic development. 
           Subd. 3.  [REPORT.] The commission shall submit a report to 
        the legislature by December 15, 1997.  Included within the 
        report, the commission may suggest changes in the public 
        purpose, criterion for award, administration, accountability and 
        enforcement mechanisms, and funding of the subsidy programs.  
        The commission may also suggest changes in the applicable tax 
        laws. 
           Subd. 4.  [MEMBERSHIP.] The commission consists of 19 
        members.  The speaker of the house shall appoint five members, 
        including at least two members of the minority caucus.  The 
        senate subcommittee on committees shall appoint five members, 
        including at least two members of the minority caucus.  The 
        commissioner of trade and economic development and the 
        commissioner of revenue shall each appoint one member from their 
        respective departments.  These members shall appoint seven 
        members from the general public, of which at most two members 
        directly receive some type of public assistance described in 
        subdivision 2. 
           Subd. 5.  [STAFF ASSISTANCE.] House and senate employees 
        must staff the commission. 
           Subd. 6.  [NOTIFICATION.] In accordance with Minnesota 
        Statutes, section 471.705, the public may attend any meeting 
        held by the commission. 
           Subd. 7.  [EXPIRATION.] The commission established under 
        subdivision 1 expires July 1, 1998. 
           Sec. 56.  [INFORMATION POLICY TASK FORCE.] 
           Subdivision 1.  [CREATION.] An information policy task 
        force is created to study and make recommendations regarding 
        Minnesota law on public information policy, including government 
        data practices and information technology issues.  The task 
        force consists of: 
           (1) two members of the senate appointed by the 
        subcommittees on committees of the committee on rules and 
        administration; 
           (2) two members of the house of representatives appointed 
        by the speaker; 
           (3) four members appointed by the governor; 
           (4) two nonlegislative members appointed by the 
        subcommittee on committees of the committee on rules and 
        administration of the senate; and 
           (5) two nonlegislative members appointed by the speaker of 
        the house of representatives.  
           At least one member from each legislative body must be a 
        member of the majority party and at least one member from each 
        body must be a member of the minority party or an independent. 
           Subd. 2.  [DUTIES; REPORT.] The task force shall study: 
           (1) the content and organization of government data 
        practices statutes in Minnesota Statutes, chapter 13, and 
        related statutes dealing with access to government data, fair 
        information practices, and privacy; 
           (2) issues related to surveillance and other forms of 
        information technology, including the impact of technology on 
        data practices and privacy; 
           (3) procedures and structures for developing and 
        implementing a coherent and coordinated approach to public 
        information policy; 
           (4) approaches to information policy in other states and 
        foreign jurisdictions; and 
           (5) other information policy issues identified by the task 
        force. 
           In its study of statutes under clause (1), the task force 
        shall include an evaluation to determine whether any statutes 
        are inconsistent or obsolete. 
           The task force shall submit a progress report to the 
        legislature by February 1, 1998, and a final report of its 
        findings and recommendations, including any proposed 
        legislation, to the legislature by January 15, 1999. 
           Subd. 3.  [SUPPORT.] The commissioner of administration and 
        the director of the office of strategic and long-range planning 
        shall provide staff and other support services to the task force.
        Legislative support to the task force must come from existing 
        resources.  The executive director of the Minnesota office of 
        technology or the executive director's designee shall assist in 
        the task force's activities.  
           Subd. 4.  [COMPENSATION.] When authorized by the task 
        force, members of the task force who are not legislators or 
        full-time employees of the state or a political subdivision 
        shall be compensated at the rate of $55 a day spent on task 
        force activities, plus expenses in the same manner and amount as 
        authorized by the commissioner's plan adopted under Minnesota 
        Statutes, section 43A.18, subdivision 2, and child care expenses 
        that would not have been incurred if the member had not attended 
        the task force meeting.  A member who is a full-time employee of 
        the state or a political subdivision may not receive the daily 
        payment, but may suffer no loss in compensation or benefits from 
        the state or the political subdivision as a result of service on 
        the task force.  A member who is a full-time employee of the 
        state or a political subdivision may receive the expenses 
        provided for in this subdivision unless the expenses are 
        reimbursed by another source.  A member who is an employee of 
        the state or a political subdivision may be reimbursed for child 
        care expenses only for time spent on task force activities that 
        are outside their normal working hours.  
           Subd. 5.  [EXPIRATION.] The task force expires upon 
        submission of its final report to the legislature under 
        subdivision 2. 
           Sec. 57.  [STUDY OF SCHOOL FUND LAND MANAGEMENT.] 
           If directed by the legislative audit commission, the 
        legislative auditor shall conduct the studies in this section.  
        The legislative auditor shall conduct a study to determine 
        whether the administrative costs expended by the department of 
        natural resources to manage permanent school fund land reflect 
        the actual cost of managing the permanent school fund land.  The 
        study shall also encompass investment policies to maximize 
        returns to the fund.  The auditor shall also study whether 
        another unit of government could manage the permanent school 
        fund land more cost-efficiently.  The auditor shall report to 
        the permanent school fund advisory committee by January 15, 1998.
           Sec. 58.  [AGENCY EXAMINATION.] 
           During the interim between the 1997 and 1998 regular 
        sessions, the governmental operations budget division of the 
        senate shall conduct a thorough review of the operation and 
        financing of the following state agencies:  the departments of 
        administration, finance, and revenue; 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 division and division 
        staff.  Agency personnel shall assist the division and division 
        staff in developing a better understanding of how the agencies 
        operate. 
           Sec. 59.  [REVIEW OF OBSOLETE RULES AND STUDY OF 
        OUTCOME-BASED REGULATION.] 
           The senate committee on governmental operations and 
        veterans and the house committee on governmental operations, in 
        cooperation with the affected state agencies, shall review 
        Minnesota Rules and report to the legislature by January 15, 
        1998, any rules that the committees find to be obsolete, 
        unnecessary, or duplicative of other state or federal rules or 
        statutes.  The report must include any necessary legislation the 
        committees propose to eliminate the rules or correct the 
        duplication.  In addition, the committee should complete a study 
        on whether to require state agencies to implement outcome-based 
        regulatory programs whenever feasible. 
           Sec. 60.  [RULE VOID.] 
           (a) That portion of Minnesota Rules, part 1350.7300, 
        subpart 2, which requires that commercial office space must be 
        separated from other areas of the building by floor-to-ceiling 
        walls is void. 
           (b) The commissioner of administration shall amend 
        Minnesota Rules, part 1350.7300, subpart 2, to conform with 
        paragraph (a).  This amendment may be done in the manner 
        specified in Minnesota Statutes, section 14.388, clause (3), or 
        may be done the next time the commissioner proposes other 
        amendments to rules relating to the state building code or 
        manufactured homes. 
           Sec. 61.  [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, 1999.  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.  
           Sec. 62.  [BOND SALE AUTHORIZATIONS REDUCED.] 
           The bond sale authorizations in the following laws are 
        reduced by the amounts indicated: 
           (1) Laws 1987, chapter 400, section 25, subdivision 1, is 
        reduced by $295,000.  
           (2) Laws 1989, chapter 300, article 1, section 23, 
        subdivision 1, is reduced by $3,335,000. 
           (3) Laws 1990, chapter 610, article 1, section 30, 
        subdivision 1, is reduced by $9,280,000. 
           (4) Laws 1990, chapter 610, article 1, section 30, 
        subdivision 3, is reduced by $165,000. 
           (5) Laws 1991, chapter 350, article 1, section 2, 
        subdivision 1, is reduced by $48,765,000. 
           (6) Laws 1992, chapter 558, section 28, subdivision 1, is 
        reduced by $6,590,000. 
           (7) Laws 1993, chapter 373, section 19, subdivision 1, is 
        reduced by $10,000. 
           (8) Laws 1996, chapter 463, section 27, subdivision 1, is 
        reduced by $37,285,000. 
           Sec. 63.  [INSTRUCTION TO REVISOR.] 
           In the next editions of Minnesota Statutes and Minnesota 
        Rules, the revisor of statutes shall change the term "ethical 
        practices board" to "campaign finance and public disclosure 
        board" wherever it appears. 
           Sec. 64.  [REPEALER.] 
           (a) Minnesota Statutes 1996, section 138.35, subdivision 3, 
        is repealed. 
           (b) Minnesota Statutes 1996, sections 10A.21; and 16B.58, 
        subdivision 8, are repealed. 
           Sec. 65.  [EFFECTIVE DATE.] 
           Sections 1, 12, 14, 16 to 19, 36, 60, and 64, paragraph 
        (b), are effective the day following final enactment.  Section 
        20 is effective March 1, 1998.  Section 51, subdivisions 1 to 3, 
        are effective the day following final enactment.  Section 51, 
        subdivisions 4 to 8, are effective July 1, 1997. 
                                   ARTICLE 3
                             INFORMATION TECHNOLOGY 
           Section 1.  Minnesota Statutes 1996, section 16B.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FACSIMILE SIGNATURES AND ELECTRONIC APPROVALS.] 
        When authorized by the commissioner, facsimile signatures and, 
        electronic approvals, or digital signatures may be used by 
        personnel of the department of administration in accordance with 
        the commissioner's delegated authority and instructions,.  
        Copies of which shall the delegated authority and instructions 
        must be filed with the commissioner of finance, state treasurer, 
        and the secretary of state.  A facsimile signature or, 
        electronic approval, or digital signature, when used in 
        accordance with the commissioner's delegated authority and 
        instructions, is as effective as an original signature. 
           Sec. 2.  [16B.415] [OPERATION OF INFORMATION SYSTEMS.] 
           The commissioner, through a division of technology 
        management, is responsible for ongoing operations of state 
        agency information technology activities.  These include records 
        management, activities relating to the government data practices 
        act, operation of MNet, and activities necessary to make state 
        information systems year 2000 compliant.  
           Sec. 3.  Minnesota Statutes 1996, section 16B.42, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMPOSITION.] The intergovernmental 
        information systems advisory council is composed of (1) two 
        members from each of the following groups:  counties outside of 
        the seven-county metropolitan area, cities of the second and 
        third class outside the metropolitan area, cities of the second 
        and third class within the metropolitan area, and cities of the 
        fourth class; (2) one member from each of the following groups:  
        the metropolitan council, an outstate regional body, counties 
        within the metropolitan area, cities of the first class, school 
        districts in the metropolitan area, school districts outside the 
        metropolitan area, and public libraries; (3) one member each 
        appointed by the state departments of children, families, and 
        learning, human services, revenue, and economic security, the 
        office of strategic and long-range planning, office of 
        technology, administration, and the legislative auditor; (4) one 
        member from the office of the state auditor, appointed by the 
        auditor; (5) the assistant commissioner of administration for 
        the information policy office; (6) one member appointed by each 
        of the following organizations:  league of Minnesota cities, 
        association of Minnesota counties, Minnesota association of 
        township officers, and Minnesota association of school 
        administrators; and (7) (6) one member of the house of 
        representatives appointed by the speaker and one member of the 
        senate appointed by the subcommittee on committees of the 
        committee on rules and administration.  The legislative members 
        appointed under clause (7) (6) are nonvoting members.  The 
        commissioner of administration shall appoint members under 
        clauses (1) and (2).  The terms, compensation, and removal of 
        the appointed members of the advisory council are as provided in 
        section 15.059, but the council does not expire until June 30, 
        1997 1999. 
           Sec. 4.  Minnesota Statutes 1996, section 16B.465, is 
        amended to read: 
           16B.465 [STATEWIDE MINNESOTA NETWORK FOR TELECOMMUNICATIONS 
        ACCESS ROUTING SYSTEM ("MNET").] 
           Subdivision 1.  [CREATION.] The statewide Minnesota network 
        for telecommunications access routing system, known as "MNet," 
        provides voice, data, video, and other telecommunications 
        transmission services to state agencies; educational 
        institutions, including public schools as defined in section 
        120.05, nonpublic, church or religious organization 
        schools which that provide instruction in compliance with 
        sections 120.101 to 120.102, and private colleges; public 
        corporations; and state political subdivisions.  It is not a 
        telephone company for purposes of chapter 237.  It shall not 
        resell or sublease any services or facilities to nonpublic 
        entities except it may serve private schools and colleges.  The 
        commissioner has the responsibility for planning, development, 
        and operations of a statewide telecommunications access routing 
        system MNet in order to provide cost-effective 
        telecommunications transmission services to system MNet users. 
           Subd. 2.  [ADVISORY COUNCIL.] The statewide 
        telecommunications access and routing system MNet is managed by 
        the commissioner.  Subject to section 15.059, subdivisions 1 to 
        4, the commissioner shall appoint an advisory council to provide 
        advice in implementing and operating a statewide 
        telecommunications access and routing system MNet.  The council 
        shall represent the users of STARS MNet services and shall 
        include representatives of higher education, public and private 
        schools, state agencies, and political subdivisions. 
           Subd. 3.  [DUTIES.] The commissioner, after consultation 
        with the council office of technology, shall: 
           (1) provide voice, data, video, and other 
        telecommunications transmission services to the state and to 
        political subdivisions through an account in the 
        intertechnologies revolving fund; 
           (2) manage vendor relationships, network function, and 
        capacity planning in order to be responsive to the needs of the 
        system users; 
           (3) set rates and fees for services; 
           (4) approve contracts relating to the system; 
           (5) in consultation with the office of technology, develop 
        the system plan, including plans for the phasing of its 
        implementation and maintenance of the initial system, and the 
        annual program and fiscal plans for the system; and 
           (6) in consultation with the office of technology, develop 
        a plan for interconnection of the network with private colleges 
        and public and private schools in the state. 
           Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
        require the participation of state agencies, the state board of 
        education, and the board of trustees of the Minnesota state 
        colleges and universities and may request the participation of 
        the board of regents of the University of Minnesota, in the 
        planning and implementation of the network to provide 
        interconnective technologies.  The commissioner shall establish 
        reimbursement rates in cooperation with the commissioner of 
        finance to be billed to participating agencies and educational 
        institutions sufficient to cover the operating, maintenance, and 
        administrative costs of the system. 
           (b) A direct appropriation made to an educational 
        institution for usage costs associated with the STARS network 
        MNet must only be used by the educational institution for 
        payment of usage costs of the network as billed by the 
        commissioner of administration.  
           Subd. 6.  [REVOLVING FUND APPROPRIATION.] Money 
        appropriated for the statewide telecommunications access routing 
        system MNet and fees for telecommunications services must be 
        deposited in an account in the intertechnologies revolving 
        fund.  Money in the account is appropriated annually to the 
        commissioner to operate telecommunications services. 
           Subd. 7.  [EXEMPTION.] The system is exempt from the 
        five-year limitation on contracts set by section 16B.07, 
        subdivision 2. 
           Sec. 5.  [16B.466] [ADMINISTRATION OF STATE COMPUTER 
        FACILITIES.] 
           Subdivision 1.  [COMMISSIONER'S RESPONSIBILITY.] The 
        commissioner shall integrate and operate the state's centralized 
        computer facilities to serve the needs of state government.  The 
        commissioner shall provide technical assistance to state 
        agencies in the design, development, and operation of their 
        computer systems. 
           Subd. 2.  [JOINT ACTIONS.] The commissioner may, within 
        available funding, join with the federal government, other 
        states, local governments, and organizations representing those 
        groups either jointly or severally in the development and 
        implementation of systems analysis, information services, and 
        computerization projects. 
           Sec. 6.  Minnesota Statutes 1996, section 16B.467, is 
        amended to read: 
           16B.467 [ELECTRONIC PERMITTING AND LICENSING CONDUCT OF 
        STATE BUSINESS.] 
           The commissioner of administration shall develop and 
        implement a system under which people seeking state business can 
        be conducted and permits or licenses that can be issued 
        immediately upon payment of a fee can obtain these permits and 
        licenses obtained through electronic access to communication 
        with the appropriate state agencies.  
           Sec. 7.  [16E.01] [OFFICE OF TECHNOLOGY.] 
           Subdivision 1.  [PURPOSE.] The office of technology, 
        referred to in this chapter as the "office," is an agency in the 
        executive branch managed by an executive director appointed by 
        the governor.  The office shall provide leadership and direction 
        for information and communications technology policy in 
        Minnesota.  The office shall coordinate strategic investments in 
        information and communications technology to encourage the 
        development of a technically literate society and to ensure 
        sufficient access to and efficient delivery of government 
        services.  
           Subd. 2.  [DISCRETIONARY POWERS.] The office may: 
           (1) enter into contracts for goods or services with public 
        or private organizations and charge fees for services it 
        provides; 
           (2) apply for, receive, and expend money from public 
        agencies; 
           (3) apply for, accept, and disburse grants and other aids 
        from the federal government and other public or private sources; 
           (4) enter into contracts with agencies of the federal 
        government, local governmental units, the University of 
        Minnesota and other educational institutions, and private 
        persons and other nongovernmental organizations as necessary to 
        perform its statutory duties; 
           (5) appoint committees and task forces of not more than two 
        years' duration to assist the office in carrying out its duties; 
           (6) sponsor and conduct conferences and studies, collect 
        and disseminate information, and issue reports relating to 
        information and communications technology issues; 
           (7) participate in the activities of standards bodies and 
        other appropriate conferences related to information and 
        communications technology issues; 
           (8) review the technology infrastructure of regions of the 
        state and cooperate with and make recommendations to the 
        governor, legislature, state agencies, local governments, local 
        technology development agencies, the federal government, private 
        businesses, and individuals for the realization of information 
        and communications technology infrastructure development 
        potential; 
           (9) sponsor, support, and facilitate innovative and 
        collaborative economic and community development and government 
        services projects, including technology initiatives related to 
        culture and the arts, with public and private organizations; and 
           (10) review and recommend alternative sourcing strategies 
        for state information and communications systems. 
           Subd. 3.  [DUTIES.] The office shall: 
           (1) coordinate the efficient and effective use of available 
        federal, state, local, and private resources to develop 
        statewide information and communications technology and its 
        infrastructure; 
           (2) review state agency and intergovernmental information 
        and communications systems development efforts involving state 
        or intergovernmental funding, provide information to the 
        legislature in accordance with section 16A.11 regarding projects 
        reviewed, and recommend projects for inclusion in the 
        information technology budget under section 16A.11; 
           (3) encourage cooperation and collaboration among state and 
        local governments in developing intergovernmental communication 
        and information systems, and define the structure and 
        responsibilities of the information policy council; 
           (4) cooperate and collaborate with the legislative and 
        judicial branches in the development of information and 
        communications systems in those branches; 
           (5) continue the development of North Star, the state's 
        official comprehensive online service and information 
        initiative; 
           (6) promote and collaborate with the state's agencies in 
        the state's transition to an effectively competitive 
        telecommunications market; 
           (7) collaborate with entities carrying out education and 
        lifelong learning initiatives to assist Minnesotans in 
        developing technical literacy and obtaining access to ongoing 
        learning resources; 
           (8) promote and coordinate public information access and 
        network initiatives, consistent with chapter 13, to connect 
        Minnesota's citizens and communities to each other, to their 
        governments, and to the world; 
           (9) promote and coordinate electronic commerce initiatives 
        to ensure that Minnesota businesses and citizens can 
        successfully compete in the global economy; 
           (10) promote and coordinate the regular and periodic 
        reinvestment in the core information and communications 
        technology infrastructure so that state and local government 
        agencies can effectively and efficiently serve their customers; 
           (11) facilitate the cooperative development of standards 
        for information systems, electronic data practices and privacy, 
        and electronic commerce among international, national, state, 
        and local public and private organizations; and 
           (12) work with others to avoid unnecessary duplication of 
        existing services or activities provided by other public and 
        private organizations while building on the existing 
        governmental, educational, business, health care, and economic 
        development infrastructures. 
           Sec. 8.  [16E.02] [OFFICE OF TECHNOLOGY STRUCTURE AND 
        PERSONNEL.] 
           Subdivision 1.  [OFFICE MANAGEMENT AND STRUCTURE.] The 
        executive director is the state's chief information officer and 
        technology advisor to the governor.  The salary of the executive 
        director may not exceed 85 percent of the governor's salary.  
        The executive director may employ a deputy director, assistant 
        directors, and other employees that the executive director may 
        consider necessary.  The executive director and the deputy and 
        assistant directors and one confidential secretary serve in the 
        unclassified service.  The staff of the office must include 
        individuals knowledgeable in information and communications 
        technology.  The executive director may appoint other personnel 
        as necessary to operate the office of technology in accordance 
        with chapter 43A. 
           Subd. 2.  [INTERGOVERNMENTAL PARTICIPATION.] The executive 
        director or the director's designee shall serve as a member of 
        the Minnesota education telecommunications council, the 
        geographic information systems council, the library planning 
        task force, or their respective successor organizations, and as 
        a member of Minnesota Technology, Inc., the Minnesota health 
        data institute as a nonvoting member, and the Minnesota world 
        trade center corporation. 
           Sec. 9.  [16E.03] [ADMINISTRATION OF STATE INFORMATION AND 
        COMMUNICATIONS SYSTEMS.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
        16E.03 to 16E.05, the following terms have the meanings given 
        them. 
           (a) "Information and communications technology activity" 
        means the development or acquisition of information and 
        communications technology devices and systems, but does not 
        include MNet or its contractors. 
           (b) "Data processing device or system" means equipment or 
        computer programs, including computer hardware, firmware, 
        software, and communication protocols, used in connection with 
        the processing of information through electronic data processing 
        means, and includes data communication devices used in 
        connection with computer facilities for the transmission of data.
           (c) "State agency" means an agency in the executive branch 
        of state government and includes state colleges and universities 
        and the Minnesota higher education services office, 
        notwithstanding any other law enacted at the 1997 legislative 
        session. 
           Subd. 2.  [EXECUTIVE DIRECTOR'S RESPONSIBILITY.] The 
        executive director shall coordinate the state's information and 
        communications technology systems to serve the needs of the 
        state government.  The executive director shall: 
           (1) coordinate the design of a master plan for information 
        and communications technology systems in the state and its 
        political subdivisions and shall report on the plan to the 
        governor and legislature at the beginning of each regular 
        session; 
           (2) coordinate all information and communications 
        technology plans and contracts and oversee the state's 
        information and communications systems; 
           (3) establish standards for information and communications 
        systems that encourage competition and support open systems 
        environments and that are compatible with national and 
        international standards; and 
           (4) maintain a library of systems and programs developed by 
        the state and its political subdivisions for use by agencies of 
        government. 
           Subd. 3.  [EVALUATION AND APPROVAL.] A state agency may not 
        undertake an information and communications technology activity 
        until it has been evaluated according to the procedures 
        developed under subdivision 4.  The governor or governor's 
        designee shall give written approval of the proposed activity.  
        If the proposed activity is not approved, the commissioner of 
        finance shall cancel the unencumbered balance of any 
        appropriation allotted for the activity.  This subdivision does 
        not apply to acquisitions or development of information and 
        communications systems that have anticipated total cost of less 
        than $100,000. 
           Subd. 4.  [EVALUATION PROCEDURE.] The executive director 
        shall establish and, as necessary, update and modify procedures 
        to evaluate information and communications activities proposed 
        by state agencies.  The evaluation procedure must assess the 
        necessity, design and plan for development, ability to meet user 
        requirements, feasibility, and flexibility of the proposed data 
        processing device or system, its relationship to other state 
        data processing devices or systems, and its costs and benefits 
        when considered by itself and when compared with other options. 
           Subd. 5.  [REPORT TO LEGISLATURE.] The executive director 
        shall submit to the legislature, in the information technology 
        budget required by section 16A.11, a concise narrative 
        explanation of the activity and a request for any additional 
        appropriation necessary to complete the activity. 
           Subd. 6.  [SYSTEM DEVELOPMENT METHODS.] The executive 
        director shall establish and, as necessary, update and modify 
        methods for developing information and communications systems 
        appropriate to the specific needs of individual state agencies.  
        The development methods shall be used to define the design, 
        programming, and implementation of systems.  The development 
        methods must also enable and require a data processing system to 
        be defined in terms of its computer programs, input 
        requirements, output formats, administrative procedures, and 
        processing frequencies. 
           Subd. 7.  [DATA SECURITY SYSTEMS.] In consultation with the 
        attorney general and appropriate agency heads, the executive 
        director shall develop data security policies, guidelines, and 
        standards, and the commissioner of administration shall install 
        and administer state data security systems on the state's 
        centralized computer facility consistent with these policies, 
        guidelines, standards, and state law to ensure the integrity of 
        computer-based and other data and to ensure applicable 
        limitations on access to data, consistent with the public's 
        right to know as defined in chapter 13.  Each department or 
        agency head is responsible for the security of the department's 
        or agency's data. 
           Subd. 8.  [JOINT ACTIONS.] The executive director may join 
        with the federal government, other states, local governments, 
        and organizations representing those groups either jointly or 
        severally in the development and implementation of systems 
        analysis, information services, and computerization projects. 
           Sec. 10.  [16E.04] [INFORMATION AND COMMUNICATIONS 
        TECHNOLOGY POLICY.] 
           Subdivision 1.  [DEVELOPMENT.] The office shall coordinate 
        with state agencies in developing and establishing policies and 
        standards for state agencies to follow in developing and 
        purchasing information and communications systems and training 
        appropriate persons in their use.  The office shall develop, 
        promote, and coordinate state technology, architecture, 
        standards and guidelines, information needs analysis techniques, 
        contracts for the purchase of equipment and services, and 
        training of state agency personnel on these issues. 
           Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
        activities prescribed by law, the office shall carry out the 
        duties set out in this subdivision. 
           (b) The office shall develop and establish a state 
        information architecture to ensure that further state agency 
        development and purchase of information and communications 
        systems, equipment, and services is designed to ensure that 
        individual agency information systems complement and do not 
        needlessly duplicate or conflict with the systems of other 
        agencies.  When state agencies have need for the same or similar 
        public data, the executive director, in coordination with the 
        affected agencies, shall promote the most efficient and 
        cost-effective method of producing and storing data for or 
        sharing data between those agencies.  The development of this 
        information architecture must include the establishment of 
        standards and guidelines to be followed by state agencies. 
           (c) The office shall assist state agencies in the planning 
        and management of information systems so that an individual 
        information system reflects and supports the state agency's 
        mission and the state's requirements and functions. 
           (d) The office shall review agency requests for legislative 
        appropriations for the development or purchase of information 
        systems equipment or software. 
           (e) The office shall review major purchases of information 
        systems equipment to: 
           (1) ensure that the equipment follows the standards and 
        guidelines of the state information architecture; 
           (2) ensure that the equipment is consistent with the 
        information management principles adopted by the information 
        policy council; 
           (3) evaluate whether the agency's proposed purchase 
        reflects a cost-effective policy regarding volume purchasing; 
        and 
           (4) ensure that the equipment is consistent with other 
        systems in other state agencies so that data can be shared among 
        agencies, unless the office determines that the agency 
        purchasing the equipment has special needs justifying the 
        inconsistency. 
           (f) The office shall review the operation of information 
        systems by state agencies and provide advice and assistance to 
        ensure that these systems are operated efficiently and 
        continually meet the standards and guidelines established by the 
        office.  The standards and guidelines must emphasize uniformity 
        that encourages information interchange, open systems 
        environments, and portability of information whenever 
        practicable and consistent with an agency's authority and 
        chapter 13.  The office, in consultation with the 
        intergovernmental information systems advisory council and the 
        legislative reference library, shall recommend specific 
        standards and guidelines for each state agency within a time 
        period fixed by the office in regard to the following: 
           (1) establishing methods and systems directed at reducing 
        and ultimately eliminating redundant storage of data; and 
           (2) establishing information sales systems that utilize 
        licensing and royalty agreements to the greatest extent 
        possible, together with procedures for agency denial of requests 
        for licenses or royalty agreements by commercial users or 
        resellers of the information.  Section 3.751 does not apply to 
        those licensing and royalty agreements, and the agreements must 
        include provisions that section 3.751 does not apply and that 
        the state is immune from liability under the agreement. 
           (g) The office shall conduct a comprehensive review at 
        least every three years of the information systems investments 
        that have been made by state agencies and higher education 
        institutions.  The review must include recommendations on any 
        information systems applications that could be provided in a 
        more cost-beneficial manner by an outside source.  The office 
        must report the results of its review to the legislature and the 
        governor. 
           (h) The office shall report to the legislature by January 
        15 of each year on progress in implementing paragraph (f), 
        clauses (1) and (2). 
           Sec. 11.  [16E.05] [GOVERNMENT INFORMATION ACCESS.] 
           Subdivision 1.  [DUTIES.] The office, in consultation with 
        interested persons, shall: 
           (1) coordinate statewide efforts by units of state and 
        local government to plan for and develop a system for providing 
        access to government services; 
           (2) make recommendations to facilitate coordination and 
        assistance of demonstration projects; and 
           (3) explore ways and means to improve citizen and business 
        access to public services, including implementation of 
        technological improvements. 
           Subd. 2.  [APPROVAL OF STATE AGENCY INITIATIVES.] A state 
        agency shall coordinate with the office when implementing a new 
        initiative for providing electronic access to state government 
        information. 
           Subd. 3.  [CAPITAL INVESTMENT.] No state agency may propose 
        or implement a capital investment plan for a state office 
        building unless: 
           (1) the agency has developed a plan for increasing 
        telecommuting by employees who would normally work in the 
        building, or the agency has prepared a statement describing why 
        such a plan is not practicable; and 
           (2) the plan or statement has been reviewed by the office. 
           Sec. 12.  [16E.06] [DATA PRIVACY.] 
           The following data submitted to the office by businesses 
        are private data on individuals or nonpublic data: financial 
        statements, business plans, income and expense projections, 
        customer lists, and market and feasibility studies not paid for 
        with public funds. 
           Sec. 13.  [16E.07] [NORTH STAR.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) [CORE SERVICES.] "Core services" means information 
        system applications required to provide secure information 
        services and online applications and content to the public from 
        government units.  Online applications may include, but are not 
        limited to: 
           (1) standardized public directory services and standardized 
        content services; 
           (2) online search systems; 
           (3) general technical services to support government unit 
        online services; 
           (4) electronic conferencing and communication services; 
           (5) secure electronic transaction services; 
           (6) digital audio, video, and multimedia services; and 
           (7) government intranet content and service development. 
           (c) [GOVERNMENT UNIT.] "Government unit" means a state 
        department, agency, commission, council, board, task force, or 
        committee; a constitutional office; a court entity; the 
        Minnesota state colleges and universities; a county, statutory 
        or home rule charter city, or town; a school district; a special 
        district; or any other board, commission, district, or authority 
        created under law, local ordinance, or charter provision. 
           Subd. 2.  [ESTABLISHED.] The office shall establish "North 
        Star" as the state's comprehensive government online information 
        service.  North Star is the state's governmental framework for 
        coordinating and collaborating in providing online government 
        information and services.  Government agencies that provide 
        electronic access to government information are requested to 
        make available to North Star their most frequently requested 
        public data.  
           Subd. 3.  [ACCESS TO DATA.] The legislature determines that 
        the greatest possible access to certain government information 
        and data is essential to allow citizens to participate fully in 
        a democratic system of government.  Certain information and 
        data, including, but not limited to the following, must be 
        provided free of charge or for a nominal cost associated with 
        reproducing the information or data: 
           (1) directories of government services and institutions; 
           (2) legislative and rulemaking information, including 
        public information newsletters, bill text and summaries, bill 
        status information, rule status information, meeting schedules, 
        and the text of statutes and rules; 
           (3) supreme court and court of appeals opinions and general 
        judicial information; 
           (4) opinions of the attorney general; 
           (5) ethical practices board and election information; 
           (6) public budget information; 
           (7) local government documents, such as codes, ordinances, 
        minutes, meeting schedules, and other notices in the public 
        interest; 
           (8) official documents, releases, speeches, and other 
        public information issued by government agencies; and 
           (9) the text of other government documents and publications 
        that government agencies determine are important to public 
        understanding of government activities. 
           Subd. 4.  [STAFF.] The executive director of the office 
        shall appoint the manager of the North Star online information 
        service and hire staff to carry out the responsibilities of the 
        service. 
           Subd. 5.  [PARTICIPATION; CONSULTATION; GUIDELINES.] The 
        North Star staff shall consult with governmental and 
        nongovernmental organizations to establish rules for 
        participation in the North Star service.  Government units 
        planning, developing, or providing publicly accessible online 
        services shall provide access through and collaborate with North 
        Star and formally register with the office.  The University of 
        Minnesota is requested to establish online connections and 
        collaborate with North Star.  Units of the legislature shall 
        make their services available through North Star.  Government 
        units may be required to submit standardized directory and 
        general content for core services but are not required to 
        purchase core services from North Star.  North Star shall 
        promote broad public access to the sources of online information 
        or services through multiple technologies.  
           Subd. 6.  [FEES.] The office shall establish fees for 
        technical and transaction services for government units through 
        North Star.  Fees must be credited to the North Star account. 
        The office may not charge a fee for viewing or inspecting data 
        made available through North Star or linked facilities, unless 
        specifically authorized by law. 
           Subd. 7.  [NORTH STAR ACCOUNT.] The North Star account is 
        created in the special revenue fund.  The account consists of: 
           (1) grants received from nonstate entities; 
           (2) fees and charges collected by the office; 
           (3) gifts, donations, and bequests made to the office; and 
           (4) other money credited to the account by law. 
           Money in the account is appropriated to the office to be 
        used to continue the development of the North Star project. 
           Subd. 8.  [SECURE TRANSACTION SYSTEM.] The office shall 
        plan and develop a secure transaction system to support delivery 
        of government services electronically. 
           Subd. 9.  [AGGREGATION OF SERVICE DEMAND.] The office shall 
        identify opportunities to aggregate demand for technical 
        services required by government units for online activities and 
        may contract with governmental or nongovernmental entities to 
        provide services.  These contracts are not subject to the 
        requirements of chapter 16B, except sections 16B.167, 16B.17, 
        and 16B.175. 
           Subd. 10.  [OUTREACH.] The office may promote the 
        availability of government online information and services 
        through public outreach and education.  Public network expansion 
        in communities through libraries, schools, colleges, local 
        government, and other community access points must include 
        access to North Star.  North Star may make materials available 
        to those public sites to promote awareness of the service. 
           Subd. 11.  [ADVANCED DEVELOPMENT COLLABORATION.] The office 
        shall identify information technology services with broad public 
        impact and advanced development requirements.  Those services 
        shall assist in the development of and utilization of core 
        services to the greatest extent possible where appropriate, cost 
        effective, and technically feasible.  This includes, but is not 
        limited to, higher education, statewide online library, economic 
        and community development, and K-12 educational technology 
        services.  North Star shall participate in electronic commerce 
        research and development initiatives with the University of 
        Minnesota and other partners.  The statewide online library 
        service shall consult, collaborate, and work with North Star to 
        ensure development of proposals for advanced government 
        information locator and electronic depository and archive 
        systems. 
           Sec. 14.  [16E.08] [BUSINESS LICENSE INFORMATION.] 
           The office shall coordinate the design, establishment, 
        implementation, and maintenance of an electronic system to allow 
        the public to retrieve by computer information prepared by the 
        department of trade and economic development bureau of business 
        licenses on licenses and their requirements.  The office shall 
        establish the format and standards for retrieval consistent with 
        state information and data interchange policies.  The office 
        shall integrate the system with the North Star online 
        information system.  The office shall work in collaboration with 
        the department of trade and economic development bureau of 
        business licenses.  The bureau is responsible for creating and 
        operating the system.  
           Sec. 15.  [16E.11] [TRADE POINT.] 
           The office shall cooperate with the United Nations, the 
        Minnesota world trade center corporation, the commissioner of 
        trade and economic development, the University of Minnesota, and 
        private businesses to expand international trading opportunities 
        for small and medium sized businesses through the use of 
        electronic commerce technologies and participation in the global 
        trade point network.  The office shall support research and 
        development of secured trading technologies by the commissioner 
        of trade and economic development, the University of Minnesota, 
        and others.  The office, in cooperation with the commissioner of 
        trade and economic development, shall coordinate expansion of 
        membership in a trade point association.  The office shall 
        provide training and outreach and support training and outreach 
        provided by the commissioner of trade and economic development 
        and the University of Minnesota.  These agencies shall cooperate 
        in the identification and development of electronic trading 
        centers in multiple regions of this state. 
           Sec. 16.  [16E.12] [INTERNET CENTER.] 
           Subdivision 1.  [CREATION.] The office shall create the 
        Internet center, centrally located within the state, to 
        collaborate with the North Star online information service, 
        public and private partners, and with existing or emerging 
        technology and community development efforts. 
           Subd. 2.  [COMMUNITY ASSISTANCE.] The center shall assist 
        communities and regions in comprehensive information and 
        telecommunications technology (IT) community planning, demand 
        aggregation, design, and implementation.  It shall maintain an 
        interactive database of community and business-related IT 
        experience, showcase successful models of community and business 
        IT integration, coordinate statewide IT community development 
        technical assistance, and act as a clearinghouse for 
        applications and education in the uses of IT. 
           Subd. 3.  [TELETERNS; RESOURCE TEAMS.] A "teletern" is a 
        student enrolled in a higher education program who has 
        information and telecommunications technology skills.  The 
        center shall coordinate the training and placement of teleterns 
        who have IT experience and community development process skills, 
        regional IT community development coordinators, and community IT 
        resource teams to work in partnership with communities as they 
        plan for and implement comprehensive IT resource development 
        efforts.  This includes the aggregation of demand for IT to help 
        facilitate the transition into a market-based, competitive IT 
        environment and the use of IT tools to enhance access to 
        community services, improve the business climate, and strengthen 
        community ties. 
           Subd. 4.  [COMMUNITY-BASED DEVELOPMENT PARTNERS.] The 
        center and its community-based development functions shall 
        coordinate or partner, when possible, with Minnesota learning 
        community initiatives, particularly for community-based 
        technology learning centers; Minnesota library technology 
        investments; trade point Minnesota, the University of Minnesota 
        secure electronic authentication link (SEAL) laboratory and 
        electronic trading centers; the Small Business Administration 
        business information center; Minnesota technology centers; the 
        Minnesota extension service Access Minnesota sites; and the 
        state's telecommunications collaboration project, among others. 
           Sec. 17.  [16E.13] [COMMUNITY TECHNOLOGY RESOURCE 
        DEVELOPMENT.] 
           Subdivision 1.  [CREATION AND PURPOSE.] The information and 
        telecommunications technology (IT) community resource 
        development initiative is created under the oversight 
        jurisdiction of the office of technology to build the capacity 
        of citizens, businesses, communities, and regions of the state 
        to fully realize the benefits of IT for sustainable community 
        and economic development and to help facilitate the transition 
        into the market-based, competitive IT environment. 
           Subd. 2.  [DUTIES GENERALLY.] Through this initiative, the 
        office shall: 
           (1) collect, organize, and distribute information regarding 
        the benefits, applications, and effective uses of IT; 
           (2) promote community-based telecommunications planning and 
        development and the use of community-oriented electronic 
        communications and information applications in health care, 
        education, and commerce; 
           (3) award grants for community-based development seed funds 
        to encourage public-private partnerships that foster effective 
        IT use and IT integration activities in the community; and 
           (4) facilitate the aggregation of demand for IT on a 
        comprehensive private, nonprofit, and public sector shared basis 
        in communities. 
           Subd. 3.  [ASSISTANCE AND FUNDING; GENERAL PRINCIPLES.] 
        Community technical assistance and development seed funding for 
        aggregation of demand and community IT planning provided through 
        the IT community resource development initiative is contingent 
        upon the following general principles: 
           (1) that communities and regions show evidence of, or 
        intent to do, cooperative funding and planning between sectors 
        including, but not limited to, private sector providers, public 
        sector technology investments such as MNet, library systems, 
        health care providers, businesses, schools and other educational 
        institutions, and the nonprofit sector; and 
           (2) that communities and regions agree to form local and 
        regional IT coordination committees or modify similar, existing 
        committees to be more inclusive of other sectors and undertake 
        comprehensive planning across those sectors to leverage public 
        and private IT investment to the maximum benefit of all citizens.
           Sec. 18.  Minnesota Statutes 1996, section 403.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [METROPOLITAN AREA.] "Metropolitan area" means 
        the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
        and Washington metropolitan area as defined in section 473.121, 
        subdivision 2. 
           Sec. 19.  Minnesota Statutes 1996, section 403.02, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of administration. 
           Sec. 20.  Minnesota Statutes 1996, section 403.08, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [CELLULAR AND OTHER NONWIRE PROVIDERS.] (a) Each 
        cellular and other wireless access service provider shall 
        cooperate in planning and implementing integration with enhanced 
        911 systems operating in their service territories to meet 
        federal communications commission enhanced 911 standards.  By 
        August 1, 1997, each 911 emergency telephone service provider 
        operating enhanced 911 systems, in cooperation with each 
        involved cellular or other wireless access service provider, 
        shall develop and provide to the commissioner good-faith 
        estimates of installation and recurring expenses to integrate 
        cellular 911 service into the enhanced 911 networks to meet 
        federal communications commission phase one wireless enhanced 
        911 standards.  The commissioner shall coordinate with counties 
        and affected public safety agency representatives in developing 
        a statewide design and plan for implementation.  
           (b) Planning shall be completed by October 1, 1997, for the 
        metropolitan area and shall be completed by December 1, 1997, 
        for the areas outside of the metropolitan area.  
           (c) Planning considerations must include cost, degree of 
        integration into existing 911 systems, the retention of existing 
        911 infrastructure, and the potential implications of phase 2 of 
        the federal communications commission wireless enhanced 911 
        standards.  
           (d) Counties shall incorporate the statewide design when 
        modifying county 911 plans to provide for integrating wireless 
        911 service into existing county 911 systems.  The commissioner 
        shall contract with the involved wireless service providers and 
        911 service providers to integrate cellular and other wireless 
        services into existing 911 systems where feasible. 
           Sec. 21.  Minnesota Statutes 1996, section 403.11, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MODIFICATION COSTS.] (a) The costs of a public 
        utility incurred in the modification of central office switching 
        equipment for minimum 911 service shall be paid from the general 
        fund of the state treasury by appropriations for that purpose. 
           (b) The installation and recurring charges for integrating 
        cellular and other wireless access services 911 calls into 
        enhanced 911 systems must be paid by the commissioner if the 911 
        service provider is included in the statewide design plan and 
        the charges have been certified and approved under subdivision 
        3, or the wireless access service provider has completed a 
        contract for service with the commissioner, and charges are 
        considered reasonable and accurate by the commissioner.  Charges 
        payable to wireless access service providers are not subject to 
        the provisions of subdivision 3. 
           Sec. 22.  Minnesota Statutes 1996, section 403.113, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FEE.] (a) In addition to the actual fee 
        assessed under section 403.11, each customer receiving local 
        telephone service, excluding including cellular or other nonwire 
        service, is assessed a fee to fund implementation and 
        maintenance of enhanced 911 service, including acquisition of 
        necessary equipment and the costs of the department of 
        administration commissioner to administer the program.  The 
        enhanced fee collected from cellular or other nonwire service 
        customers must be collected effective in July 1997 billings.  
        The actual fee assessed under section 403.11 and the enhanced 
        911 service fee must be collected as one amount and may not 
        exceed the amount specified in section 403.11, subdivision 1, 
        paragraph (b). 
           (b) The enhanced 911 service fee must be collected and 
        deposited in the same manner as the fee in section 403.11 and 
        used solely for the purposes of paragraph (a) and subdivision 3. 
           (c) The commissioner of the department of administration, 
        in consultation with counties and 911 system users, shall 
        determine the amount of the enhanced 911 service fee and inform 
        telephone companies or communications carriers that provide 
        service capable of originating a 911 emergency telephone call of 
        the total amount of the 911 service fees in the same manner as 
        provided in section 403.11. 
           Sec. 23.  Minnesota Statutes 1996, section 403.113, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISTRIBUTION OF MONEY.] (a) After payment of the 
        costs of the department of administration to administer the 
        program, the commissioner shall distribute the money collected 
        under this section as follows: 
           (1) one-half of the amount equally to all qualified 
        counties, and after October 1, 1997, to all qualified counties, 
        existing ten public safety answering points operated by the 
        Minnesota state patrol, and each governmental entity operating 
        the individual public safety answering points serving the 
        metropolitan airports commission, Red Lake Indian Reservation, 
        and the University of Minnesota police department; and 
           (2) the remaining one-half to qualified counties and cities 
        with existing 911 systems based on each county's or city's 
        percentage of the total population of qualified counties and 
        cities.  The population of a qualified city with an existing 
        system must be deducted from its county's population when 
        calculating the county's share under this clause if the city 
        seeks direct distribution of its share. 
           (b) A county's share under subdivision 1 must be shared pro 
        rata between the county and existing city systems in the 
        county.  A county or city or other governmental entity as 
        described in paragraph (a), clause (1), shall deposit money 
        received under this subdivision in an interest-bearing fund or 
        account separate from the county's or city's governmental 
        entity's general fund and may use money in the fund or account 
        only for the purposes specified in subdivision 3. 
           (c) For the purposes of this subdivision, a county or city 
        is qualified to share in the distribution of money for enhanced 
        911 service if the county auditor certifies to the commissioner 
        of administration the amount of the county's or city's levy for 
        the cost of providing enhanced 911 service for taxes payable in 
        the year in which money for enhanced 911 service will be 
        distributed.  The commissioner may not distribute money to a 
        county or city in an amount greater than twice the amount of the 
        county's or city's certified levy.  A county or city or other 
        governmental entity as described in paragraph (a), clause (1), 
        is not qualified to share in the distribution of money for 
        enhanced 911 service if, in addition to the levy required under 
        this paragraph, it has not implemented enhanced 911 service 
        before December 31, 1998. 
           (d) For the purposes of this subdivision, "existing city 
        system" means a city 911 system that provides at least basic 911 
        service and that was implemented on or before April 1, 1993.  
           Sec. 24.  Minnesota Statutes 1996, section 403.113, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LOCAL EXPENDITURES.] (a) Money distributed to 
        counties or an existing city system under subdivision 2 for 
        enhanced 911 service may be spent on enhanced 911 system costs 
        for the purposes stated in subdivision 1, paragraph (a).  In 
        addition, money may be spent to lease, purchase, lease-purchase, 
        or maintain enhanced 911 equipment, including telephone 
        equipment; recording equipment; computer hardware; computer 
        software for database provisioning, addressing, mapping, and any 
        other software necessary for automatic location identification 
        or local location identification; trunk lines; selective routing 
        equipment; the master street address guide; dispatcher public 
        safety answering point equipment proficiency and operational 
        skills; pay for long-distance charges incurred due to 
        transferring 911 calls to other jurisdictions; and the equipment 
        necessary within the public safety answering point for community 
        alert systems and to notify and communicate with the emergency 
        services requested by the 911 caller. 
           (b) Money distributed for enhanced 911 service may not be 
        spent on: 
           (1) purchasing or leasing of real estate or cosmetic 
        additions to or remodeling of communications centers; 
           (2) mobile communications vehicles, fire engines, 
        ambulances, law enforcement vehicles, or other emergency 
        vehicles; 
           (3) signs, posts, or other markers related to addressing or 
        any costs associated with the installation or maintenance of 
        signs, posts, or markers. 
           Sec. 25.  Minnesota Statutes 1996, section 403.113, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AUDITS.] Each county and city or other 
        governmental entity as described in subdivision 2, paragraph 
        (a), clause (1), shall conduct an annual audit on the use of 
        funds distributed to it for enhanced 911 service.  A copy of 
        each audit report must be submitted to the commissioner of 
        administration. 
           Sec. 26.  Minnesota Statutes 1996, section 403.13, is 
        amended to read: 
           403.13 [CELLULAR TELEPHONE USE.] 
           Subdivision 1.  [CELLULAR 911 CALLS.] (a) Those 
        governmental entities that are responsible for the design, 
        planning, and coordination of the 911 emergency telephone system 
        under the requirements of this chapter shall ensure that a 911 
        emergency call made with a cellular or other wireless access 
        device is automatically connected to and answered by the 
        appropriate public safety answering point. 
           (b) In order to comply with paragraph (a), representatives 
        of each county's 911 planning committee shall consult with 
        representatives of the relevant district office of the state 
        patrol to allocate responsibility for answering emergency 911 
        calls in each county, and shall notify the commissioner of the 
        agreed upon allocation.  By April 1, 1998, for the metropolitan 
        area and June 1, 1998, for the area outside the metropolitan 
        area, the county 911 planning committees and the district 
        offices of the state patrol shall notify the commissioner of any 
        unresolved issues regarding the allocation of responsibility for 
        answering cellular 911 emergency calls.  
           (c) Unresolved issues in the metropolitan area must be 
        resolved by: 
           (1) the executive director of the metropolitan 911 board; 
           (2) the 911 product manager appointed by the commissioner; 
           (3) a representative appointed by the Minnesota state 
        sheriffs association from the metropolitan area; 
           (4) the commissioner of public safety or the commissioner's 
        designee; and 
           (5) a representative appointed by the Minnesota chiefs of 
        police association from the metropolitan area. 
           (d) Unresolved issues in the area outside the metropolitan 
        area must be resolved by: 
           (1) a representative appointed by association of Minnesota 
        counties from the area outside the metropolitan area; 
           (2) the 911 product manager appointed by the commissioner; 
           (3) a representative appointed by the Minnesota state 
        sheriffs association from the area outside the metropolitan 
        area; 
           (4) the commissioner of public safety or the commissioner's 
        designee; and 
           (5) a representative appointed by the Minnesota league of 
        cities from the area outside the metropolitan area. 
           (e) These committees shall resolve outstanding issues by 
        December 31, 1998.  The decision of the committee is final. 
           Subd. 2.  [NOTIFICATION OF SUBSCRIBERS.] A provider of 
        cellular or other wireless telephone services in Minnesota shall 
        notify its subscribers at the time of initial subscription and 
        four times per year thereafter that a 911 emergency call made 
        with a cellular wireless telephone is not always answered by a 
        local public safety answering point but rather is may be routed 
        to a state patrol dispatcher and that, accordingly, the caller 
        must provide specific information regarding the caller's 
        location. 
           Sec. 27.  [403.14] [WIRELESS ENHANCED 911 SERVICE PROVIDER; 
        LIABILITY.] 
           No wireless enhanced 911 emergency communication service 
        provider, its employees, or its agents is liable to any person 
        for civil damages resulting from or caused by any act or 
        omission in the development, design, installation, operation, 
        maintenance, performance, or provision of enhanced 911 wireless 
        service, except for willful or wanton misconduct.  No wireless 
        carrier, its employees, or its agents is liable to any person 
        who uses enhanced 911 wireless service for release of subscriber 
        information required under this chapter to any public safety 
        answering point. 
           Sec. 28.  Minnesota Statutes 1996, section 473.894, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION TO FCC.] Within 180 days from 
        adoption of the regionwide public safety radio system 
        communication plan the commissioner of transportation, on behalf 
        of the state of Minnesota, shall use the plan adopted by the 
        board under subdivision 2 to submit an extended implementation 
        application to the Federal Communications Commission (FCC) for 
        the NPSPAC channels and other public safety frequencies 
        available for use in the metropolitan area and necessary to 
        implement the plan.  Local governments and all other public or 
        private entities eligible under part 90 of the FCC rules shall 
        not apply for public safety channels in the 821 to 824 and 866 
        to 869 megahertz bands for use within the metropolitan counties 
        until the FCC takes final action on the regional application 
        submitted under this section.  Exceptions to the restrictions on 
        the application for the NPSPAC channels may be granted by the 
        radio board.  The Minnesota department of transportation shall 
        hold the master system licenses for all public safety 
        frequencies assigned to the metropolitan area issued by the FCC 
        first phase under the board's plan and these channels shall be 
        used for the implementation of the plan.  Local governments and 
        other public and private entities eligible under part 90 of the 
        FCC rules may apply to the FCC as colicensees for subscriber 
        equipment and those portions of the network infrastructure owned 
        by them.  Application for colicensing under this section shall 
        require the concurrence of the radio board The radio board shall 
        hold the master system licenses for the public safety 
        frequencies assigned to local government subsystems under the 
        board's plan and these channels shall be used for implementation 
        of the plan.  Upon approval by the board of a local government's 
        subsystem plan and evidence of a signed contract with a vendor 
        for construction of a subsystem consistent with the board's 
        system plan, the board shall apply to the FCC to transfer to the 
        local government the licenses for the public safety frequencies 
        assigned by the plan for use in the network infrastructure owned 
        by the local government.  The radio board, the commissioner of 
        transportation, and local subsystem owners shall jointly 
        colicense all subscriber equipment for the backbone system. 
           Sec. 29.  [APPLICATION.] 
           Section 28 applies in Anoka, Carver, Dakota, Hennepin, 
        Ramsey, Scott, and Washington counties. 
           Sec. 30.  [INTERIM FEE; APPROPRIATION AND DISTRIBUTION.] 
           (a) Until June 30, 1998, the fee for enhanced wireless 911 
        service is ten cents per month in addition to the fee actually 
        collected under Minnesota Statutes, section 403.11, subdivision 
        1.  The additional fee is imposed effective July 1, 1997, and is 
        appropriated to the commissioner of administration for 
        distribution as established in section 22. 
           (b) Distribution of the revenue from the fee under section 
        22 for enhanced wireless 911 service must begin October 1, 1997. 
        The commissioner of administration shall determine the amount of 
        the additional enhanced wireless 911 service fee to be in effect 
        beginning July 1, 1998, under Minnesota Statutes, section 
        403.113. 
           Sec. 31.  [INITIAL DUTIES.] 
           (a) Upon creation, the office of technology shall perform a 
        series of preliminary duties designed to assess the current 
        status of the state's investment in information technology and 
        to establish a clear means of directing future information 
        technology initiatives. 
           (b) By November 1, 1997, the office shall recommend to the 
        governor and the legislature a clearly defined statutory funding 
        structure that: 
           (1) efficiently uses available federal, state, and local 
        funding sources to develop and maintain a statewide public 
        information and communications infrastructure; and 
           (2) provides a means of tracking and compiling all state 
        agency expenditures related to information technology. 
           This report also shall include a proposed format to be used 
        by state agencies for information technology budget requests.  
        The proposed format must be created in collaboration with the 
        commissioners of administration and finance. 
           (c) By December 1, 1997, the office shall review and report 
        to the governor and the legislature on the status of all 
        currently established state agency and intergovernmental 
        information and communications systems that use state funding.  
        The report shall recommend a means of consolidating existing 
        governmental information technology boards and councils, to 
        achieve efficiency, prevent duplication of effort, and clarify 
        lines of authority. 
           Sec. 32.  [EMPLOYEES; TRANSITION.] 
           Persons assigned to the office of technology on the day 
        before the effective date of this section are transferred in 
        their existing status according to Minnesota Statutes, section 
        15.039, subdivision 7.  Effective July 1, 1998, these employees, 
        other than the executive director and the deputy and assistant 
        directors, and one confidential secretary, are converted from 
        the unclassified to the classified service under the following 
        conditions: 
           (a) The commissioner of employee relations will allocate 
        positions and incumbent employees to appropriate classes in the 
        state classification plan pursuant to Minnesota Statutes, 
        section 43A.07.  The commissioner will also assign positions and 
        incumbent employees to an appropriate state unit under Minnesota 
        Statutes, section 179A.10.  Positions converted with their 
        incumbents do not create vacancies in state service. 
           (b) Employees serving in unclassified appointments from the 
        effective date of this section through June 30, 1998, and 
        converted to unlimited classified service on July 1, 1998, are 
        converted to state service without examination.  Those converted 
        to classified positions in the managerial plan pursuant to 
        Minnesota Statutes, section 43A.18, subdivision 3, who have 
        completed 12 months of service in their positions and all others 
        converted to classified positions who have completed six months 
        of service in their positions and all others converted to 
        classified positions who have completed six months of service in 
        their positions are converted with permanent status.  Employees 
        converted to classified managerial positions with less than 12 
        months of service in their positions and all others converted to 
        classified positions with less than six months of service in 
        their position are converted with probationary status.  All time 
        already served by these employees in the converted positions 
        must be credited toward meeting the probationary period 
        requirement of the state contract or plan to which their 
        position has been assigned. 
           Sec. 33.  [TRANSFERS.] 
           In accordance with Minnesota Statutes, sections 15.039 and 
        43A.045, the positions for functions transferred from the 
        information policy office, with incumbents, excluding the public 
        information policy analysis division, are transferred to the 
        Minnesota office of technology, effective July 1, 1997. 
           Sec. 34.  [INFORMATION TECHNOLOGY.] 
           By February 1, 1998, each executive branch state agency, 
        including the MNSCU system, shall report to the finance 
        divisions or committees in the house and the senate that 
        appropriate money for the agency on current and planned 
        expenditures for information technology.  The report must 
        include: 
           (1) expenditures that will be incurred in the biennium 
        ending June 30, 1999, and any planned future expenditures for 
        each information technology project in the agency; 
           (2) the goals and objectives for each information 
        technology project that is being developed in the biennium 
        ending June 30, 1999, or that is planned for a future biennium; 
        and 
           (3) the agency's progress in making its information 
        technology systems compliant with the year 2000.  
           Sec. 35.  [INSTRUCTION TO REVISOR.] 
           The revisor shall change in Minnesota Statutes and 
        Minnesota Rules all references to the information policy office 
        and the government information access council to the office of 
        technology. 
           Sec. 36.  [REPEALER.] 
           Minnesota Statutes 1996, sections 15.95; 15.96; 16B.40; 
        16B.41; and 16B.43, are repealed. 
           Sec. 37.  [EFFECTIVE DATE.] 
           Sections 20, 21, and 23 to 28 are effective the day 
        following final enactment. 
                                   ARTICLE 4 
                            COMMUNITY-BASED PLANNING 
           Section 1.  [4A.08] [COMMUNITY-BASED PLANNING GOALS.] 
           The goals of community-based planning are: 
           (1) [CITIZEN PARTICIPATION.] To develop a community-based 
        planning process with broad citizen participation in order to 
        build local capacity to plan for sustainable development and to 
        benefit from the insights, knowledge, and support of local 
        residents.  The process must include at least one citizen from 
        each affected unit of local government; 
           (2) [COOPERATION.] To promote cooperation among communities 
        to work towards the most efficient, planned, and cost-effective 
        delivery of government services by, among other means, 
        facilitating cooperative agreements among adjacent communities 
        and to coordinate planning to ensure compatibility of one 
        community's development with development of neighboring 
        communities; 
           (3) [ECONOMIC DEVELOPMENT.] To create sustainable economic 
        development strategies and provide economic opportunities 
        throughout the state that will achieve a balanced distribution 
        of growth statewide; 
           (4) [CONSERVATION.] To protect, preserve, and enhance the 
        state's resources, including agricultural land, forests, surface 
        water and groundwater, recreation and open space, scenic areas, 
        and significant historic and archaeological sites; 
           (5) [LIVABLE COMMUNITY DESIGN.] To strengthen communities 
        by following the principles of livable community design in 
        development and redevelopment, including integration of all 
        income and age groups, mixed land uses and compact development, 
        affordable and life-cycle housing, green spaces, access to 
        public transit, bicycle and pedestrian ways, and enhanced 
        aesthetics and beauty in public spaces; 
           (6) [HOUSING.] To provide and preserve an adequate supply 
        of affordable and life-cycle housing throughout the state; 
           (7) [TRANSPORTATION.] To focus on the movement of people 
        and goods, rather than on the movement of automobiles, in 
        transportation planning, and to maximize the efficient use of 
        the transportation infrastructure by increasing the availability 
        and use of appropriate public transit throughout the state 
        through land-use planning and design that makes public transit 
        economically viable and desirable; 
           (8) [LAND-USE PLANNING.] To establish a community-based 
        framework as a basis for all decisions and actions related to 
        land use; 
           (9) [PUBLIC INVESTMENTS.] To account for the full 
        environmental, social, and economic costs of new development, 
        including infrastructure costs such as transportation, sewers 
        and wastewater treatment, water, schools, recreation, and open 
        space, and plan the funding mechanisms necessary to cover the 
        costs of the infrastructure; 
           (10) [PUBLIC EDUCATION.] To support research and public 
        education on a community's and the state's finite capacity to 
        accommodate growth, and the need for planning and resource 
        management that will sustain growth; and 
           (11) [SUSTAINABLE DEVELOPMENT.] To provide a better quality 
        of life for all residents while maintaining nature's ability to 
        function over time by minimizing waste, preventing pollution, 
        promoting efficiency, and developing local resources to 
        revitalize the local economy. 
           Sec. 2.  [4A.09] [TECHNICAL ASSISTANCE.] 
           The office shall provide local governments technical and 
        financial assistance in preparing their comprehensive plans to 
        meet the community-based planning goals in section 4A.08.  
           Sec. 3.  [4A.10] [PLAN REVIEW AND COMMENT.] 
           The office shall review and comment on community-based 
        comprehensive plans prepared by counties, including the 
        community-based comprehensive plans of municipalities and towns 
        that are incorporated into a county's plan, as required in 
        section 394.232, subdivision 3. 
           Sec. 4.  Minnesota Statutes 1996, section 394.23, is 
        amended to read: 
           394.23 [COMPREHENSIVE PLAN.] 
           The board shall have has the power and authority to prepare 
        and adopt by ordinance, a comprehensive plan.  A comprehensive 
        plan or plans when adopted by ordinance shall must be the basis 
        for official controls adopted under the provisions of sections 
        394.21 to 394.37.  
           Sec. 5.  [394.232] [COMMUNITY-BASED PLANNING.] 
           Subdivision 1.  [GENERAL.] Each county is encouraged to 
        prepare and implement a community-based comprehensive plan.  A 
        community-based comprehensive plan is a comprehensive plan that 
        is consistent with the goals of community-based planning in 
        section 4A.08. 
           Subd. 2.  [NOTICE AND PARTICIPATION.] Notice must be given 
        at the beginning of the community-based comprehensive planning 
        process to the office of strategic and long-range planning, the 
        department of natural resources, the department of agriculture, 
        the department of trade and economic development, the board of 
        soil and water resources, the pollution control agency, the 
        department of transportation, local government units, and local 
        citizens to actively participate in the development of the 
        plan.  An agency that is invited to participate in the 
        development of a local plan but declines to do so and fails to 
        participate or to provide written comments during the plan 
        development process waives the right during the office's review 
        and comment period to submit comments, except for comments 
        concerning consistency of the plan with laws and rules 
        administered by the agency.  In determining the merit of the 
        agency comment, the office shall consider the involvement of the 
        agency in the development of the plan. 
           Subd. 3.  [COORDINATION.] A county that prepares a 
        community-based comprehensive plan shall coordinate its plan 
        with the plans of its neighbors and its constituent 
        municipalities and towns in order both to prevent its plan from 
        having an adverse impact on other jurisdictions and to 
        complement plans of other jurisdictions.  The county's 
        community-based comprehensive plan must incorporate the 
        community-based comprehensive plan of any municipality or town 
        in the county prepared in accordance with section 462.3535.  A 
        county may incorporate a municipal or town community-based 
        comprehensive plan by reference.  
           Subd. 4.  [JOINT PLANNING.] Under the joint exercise of 
        powers provisions in section 471.59, a county may establish a 
        joint planning district with other counties, municipalities, and 
        towns, that are geographically contiguous, to adopt a single 
        community-based comprehensive plan for the district.  The county 
        may delegate its authority to adopt official controls under this 
        chapter, to the board of the joint planning district. 
           Subd. 5.  [REVIEW AND COMMENT.] (a) The county or joint 
        planning district shall submit its community-based comprehensive 
        plan to the office of strategic and long-range planning for 
        review.  The plan is deemed approved 60 days after submittal to 
        the office, unless the office disagrees with the plan as 
        provided in paragraph (c). 
           (b) The office may not disapprove a community-based 
        comprehensive plan if the office determines that the plan meets 
        the requirements of this section.  
           (c) If the office disagrees with a community-based 
        comprehensive plan or any elements of the plan, the office shall 
        notify the county or district in writing of the plan 
        deficiencies and suggested changes.  Upon receipt of the 
        office's written comments, the county or district has 60 days to 
        revise the community-based comprehensive plan and resubmit it to 
        the office for reconsideration. 
           (d) If the county or district refuses to revise the plan or 
        the office disagrees with the revised plan, the office shall 
        within 60 days notify the county or district that it wishes to 
        initiate the dispute resolution process in chapter 572A. 
           (e) Within 30 days of notice from the office, the county or 
        joint planning district shall notify the office of its intent to 
        enter the dispute resolution process.  If the county or district 
        refuses to enter the dispute resolution process, the county or 
        district shall refund any state grant received for 
        community-based planning activities through the office. 
           Subd. 6.  [PLAN UPDATE.] The county board, or the board of 
        the joint planning district, shall review and update the 
        community-based comprehensive plan periodically, but at least 
        every ten years, and submit the updated plan to the office of 
        strategic and long-range planning for review and comment.  
           Subd. 7.  [NO MANDAMUS PROCEEDING.] A mandamus proceeding 
        may not be instituted against a county under this section to 
        require the county to conform its community-based comprehensive 
        plan to be consistent with the community-based planning goals in 
        section 4A.08. 
           Subd. 8.  [PLANNING AUTHORITY.] Nothing in this section 
        shall be construed to prohibit or limit a county's authority to 
        prepare and adopt a comprehensive plan and official controls 
        under this chapter. 
           Sec. 6.  Minnesota Statutes 1996, section 394.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ADOPTED BY ORDINANCE.] Official controls 
        which shall further the purpose and objectives of the 
        comprehensive plan and parts thereof shall be adopted by 
        ordinance.  The comprehensive plan must provide guidelines for 
        the timing and sequence of the adoption of official controls to 
        ensure planned, orderly, and staged development and 
        redevelopment consistent with the comprehensive plan.  
           Sec. 7.  Minnesota Statutes 1996, section 462.352, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COMPREHENSIVE MUNICIPAL PLAN.] "Comprehensive 
        municipal plan" means a compilation of policy statements, goals, 
        standards, and maps for guiding the physical, social and 
        economic development, both private and public, of the 
        municipality and its environs, including air space and 
        subsurface areas necessary for mined underground space 
        development pursuant to sections 469.135 to 469.141, and may 
        include, but is not limited to, the following:  statements of 
        policies, goals, standards, a land use plan, including proposed 
        densities for development, a community facilities plan, a 
        transportation plan, and recommendations for plan execution.  A 
        comprehensive plan represents the planning agency's 
        recommendations for the future development of the community.  
           Sec. 8.  Minnesota Statutes 1996, section 462.352, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LAND USE PLAN.] "Land use plan" means a 
        compilation of policy statements, goals, standards, and maps, 
        and action programs for guiding the future development of 
        private and public property.  The term includes a plan 
        designating types of uses for the entire municipality as well as 
        a specialized plan showing specific areas or specific types of 
        land uses, such as residential, commercial, industrial, public 
        or semipublic uses or any combination of such uses.  A land use 
        plan may also include the proposed densities for development. 
           Sec. 9.  Minnesota Statutes 1996, section 462.352, is 
        amended by adding a subdivision to read: 
           Subd. 18.  [URBAN GROWTH AREA.] "Urban growth area" means 
        the identified area around an urban area within which there is a 
        sufficient supply of developable land for at least a prospective 
        20-year period, based on demographic forecasts and the time 
        reasonably required to effectively provide municipal services to 
        the identified area. 
           Sec. 10.  [462.3535] [COMMUNITY-BASED PLANNING.] 
           Subdivision 1.  [GENERAL.] Each municipality is encouraged 
        to prepare and implement a community-based comprehensive 
        municipal plan.  A community-based comprehensive municipal plan 
        is a comprehensive plan that is consistent with the goals of 
        community-based planning in section 4A.08. 
           Subd. 2.  [COORDINATION.] A municipality that prepares a 
        community-based comprehensive municipal plan shall coordinate 
        its plan with the plans, if any, of the county and the 
        municipality's neighbors both in order to prevent the plan from 
        having an adverse impact on other jurisdictions and to 
        complement the plans of other jurisdictions.  The municipality 
        shall prepare its plan to be incorporated into the county's 
        community-based comprehensive plan, if the county is preparing 
        or has prepared one, and shall otherwise assist and cooperate 
        with the county in its community-based planning. 
           Subd. 3.  [JOINT PLANNING.] Under the joint exercise of 
        powers provisions in section 471.59, a municipality may 
        establish a joint planning district with other municipalities or 
        counties that are geographically contiguous, to adopt a single 
        community-based comprehensive plan for the district.  A 
        municipality may delegate its authority to adopt official 
        controls under sections 462.351 to 462.364, to the board of the 
        joint planning district. 
           Subd. 4.  [CITIES; URBAN GROWTH AREAS.] (a) The 
        community-based comprehensive municipal plan for a statutory or 
        home rule charter city, and official controls to implement the 
        plan, must at a minimum, address any urban growth area 
        identified in a county plan and may establish an urban growth 
        area for the urbanized and urbanizing area.  The city plan must 
        establish a staged process for boundary adjustment to include 
        the urbanized or urbanizing area within corporate limits as the 
        urban growth area is developed and provided municipal services. 
           (b) Within the urban growth area, the plan must provide for 
        the staged provision of urban services, including, but not 
        limited to, water, wastewater collection and treatment, and 
        transportation.  
           Subd. 5.  [URBAN GROWTH AREA BOUNDARY ADJUSTMENT 
        PROCESS.] (a) After an urban growth area has been identified in 
        a county or city plan, a city shall negotiate, as part of the 
        comprehensive planning process and in coordination with the 
        county, an orderly annexation agreement with the townships 
        containing the affected unincorporated areas located within the 
        identified urban growth area.  The agreement shall contain a 
        boundary adjustment staging plan that establishes a sequencing 
        plan over the subsequent 20-year period for the orderly growth 
        of the city based on its reasonably anticipated development 
        pattern and ability to extend municipal services into designated 
        unincorporated areas located within the identified urban growth 
        area.  The city shall include the staging plan agreed upon in 
        the orderly annexation agreement in its comprehensive plan.  
        Upon agreement by the city and town, prior adopted orderly 
        annexation agreements may be included as part of the boundary 
        adjustment plan and comprehensive plan without regard to whether 
        the prior adopted agreement is consistent with this section.  
        When either the city or town requests that an existing orderly 
        annexation agreement affecting unincorporated areas located 
        within an identified or proposed urban growth area be 
        renegotiated, the renegotiated plan shall be consistent with 
        this section. 
           (b) After a city's community-based comprehensive plan is 
        approved under this section, the orderly annexation agreement 
        shall be filed with the municipal board or its successor 
        agency.  Thereafter, the city may orderly annex the part or 
        parts of the designated unincorporated area according to the 
        sequencing plan and conditions contained in the negotiated 
        orderly annexation agreement by submitting a resolution to the 
        municipal board or its successor agency.  The resolution shall 
        specify the legal description of the area designated pursuant to 
        the staging plan contained in the agreement, a map showing the 
        new boundary and its relation to the existing city boundary, a 
        description of and schedule for extending municipal services to 
        the area, and a determination that all applicable conditions in 
        the agreement have been satisfied.  Within 30 days of receipt of 
        the resolution, the municipal board or its successor shall 
        review the resolution and if it finds that the terms and 
        conditions of the orderly annexation agreement have been met, 
        shall order the annexation.  The boundary adjustment shall 
        become effective upon issuance of an order by the municipal 
        board or its successor.  The municipal board or its successor 
        shall cause copies of the boundary adjustment order to be mailed 
        to the secretary of state, department of revenue, state 
        demographer, and the department of transportation.  No further 
        proceedings under chapter 414 or 572A shall be required to 
        accomplish the boundary adjustment.  This section provides the 
        sole method for annexing unincorporated land within an urban 
        growth area, unless the parties agree otherwise. 
           (c) If a community-based comprehensive plan is updated, the 
        parties shall renegotiate the orderly annexation agreement as 
        needed to incorporate the adjustments and shall refile the 
        agreement with the municipal board or its successor. 
           Subd. 6.  [REVIEW BY ADJACENT MUNICIPALITIES; CONFLICT 
        RESOLUTION.] Before a community-based comprehensive municipal 
        plan is incorporated into the county's plan under section 
        394.232, subdivision 3, a municipality's community-based 
        comprehensive municipal plan must be coordinated with adjacent 
        municipalities within the county.  As soon as practical after 
        the development of a community-based comprehensive municipal 
        plan, the municipality shall provide a copy of the draft plan to 
        adjacent municipalities within the county for review and 
        comment.  An adjacent municipality has 30 days after receipt to 
        review the plan and submit written comments. 
           Subd. 7.  [COUNTY REVIEW.] (a) If a city does not plan for 
        growth beyond its current boundaries, the city shall submit its 
        community-based comprehensive municipal plan to the county for 
        review and comment.  A county has 60 days after receipt to 
        review the plan and submit written comments to the city.  The 
        city may amend its plan based upon the county's comments.  
           (b) If a town prepares a community-based comprehensive 
        plan, it shall submit the plan to the county for review and 
        comment.  As provided in section 394.33, the town plan may not 
        be inconsistent with or less restrictive than the county plan.  
        A county has 60 days after receipt to review the plan and submit 
        written comments to the town.  The town may amend its plan based 
        on the county's comment. 
           Subd. 8.  [COUNTY APPROVAL.] (a) If a city plans for growth 
        beyond its current boundaries, the city's proposed 
        community-based comprehensive municipal plan and proposed urban 
        growth area must be reviewed and approved by the county before 
        the plan is incorporated into the county's plan.  The county may 
        review and provide comments on any orderly annexation agreement 
        during the same period of review of a comprehensive plan. 
           (b) Upon receipt by the county of a community-based 
        comprehensive plan submitted by a city for review and approval 
        under this subdivision, the county shall, within 60 days of 
        receipt of a city plan, review and approve the plan in 
        accordance with this subdivision.  The county shall review and 
        approve the city plan if it is consistent with the goals stated 
        in section 4A.08. 
           (c) In the event the county does not approve the plan, the 
        county shall submit its comments to the city within 60 days.  
        The city may, thereafter, amend the plan and resubmit the plan 
        to the county.  The county shall have an additional 60 days to 
        review and approve a resubmitted plan.  In the event the county 
        and city are unable to come to agreement, either party may 
        initiate the dispute resolution process contained in chapter 
        572A.  Within 30 days of receiving notice that the other party 
        has initiated dispute resolution, the city or county shall send 
        notice of its intent to enter dispute resolution.  If the city 
        refuses to enter the dispute resolution process, it must refund 
        any grant received from the county for community-based planning 
        activities.  
           Subd. 9.  [PLAN ADOPTION.] The municipality shall adopt and 
        implement the community-based comprehensive municipal plan after 
        the office of strategic and long-range planning has reviewed and 
        commented on the county's plan that incorporates the 
        municipality's plan.  The municipality shall thereafter, where 
        it deems appropriate, incorporate any comments made by the 
        office into its plan and adopt the plan. 
           Subd. 10.  [NO MANDAMUS PROCEEDING.] A mandamus proceeding 
        may not be instituted against a municipality under this section 
        to require the municipality to conform its community-based 
        comprehensive plan to be consistent with the community-based 
        planning goals in section 4A.08. 
           Sec. 11.  Minnesota Statutes 1996, section 462.357, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
        adoption of a land use plan for the municipality, the planning 
        agency, for the purpose of carrying out the policies and goals 
        of the land use plan, may prepare a proposed zoning ordinance 
        and submit it to the governing body with its recommendations for 
        adoption.  Subject to the requirements of subdivisions 3, 4 and 
        5, the governing body may adopt and amend a zoning ordinance by 
        a two-thirds vote of all its members.  If the comprehensive 
        municipal plan is in conflict with the zoning ordinance, the 
        zoning ordinance supersedes the plan.  The plan must provide 
        guidelines for the timing and sequence of the adoption of 
        official controls to ensure planned, orderly, and staged 
        development and redevelopment consistent with the plan. 
           Sec. 12.  [473.1455] [METROPOLITAN DEVELOPMENT GUIDE 
        GOALS.] 
           The metropolitan council shall amend the metropolitan 
        development guide, as necessary, to reflect and implement the 
        community-based planning goals in section 4A.08.  The office of 
        strategic and long-range planning shall review and comment on 
        the metropolitan development guide.  The council may not approve 
        local comprehensive plans or plan amendments after July 1, 1999, 
        until the metropolitan council has received and considered the 
        comments of the office of strategic and long-range planning. 
           Sec. 13.  [ADVISORY COUNCIL ON COMMUNITY-BASED PLANNING.] 
           Subdivision 1.  [ESTABLISHMENT; PURPOSE.] An advisory 
        council on community-based planning is established to provide a 
        forum for discussion and development of the framework for 
        community-based planning and the incentives and tools to 
        implement the plans. 
           Subd. 2.  [DUTIES.] The advisory council shall propose 
        legislation for the 1998 legislative session relating to the 
        framework to implement community-based planning.  The advisory 
        council shall: 
           (1) develop a model process to involve citizens in 
        community-based planning from the beginning of the planning 
        process; 
           (2) hold meetings statewide to solicit advice and 
        information on how to implement community-based planning; 
           (3) develop specific, measurable criteria by which plans 
        will be reviewed for consistency with the goals in Minnesota 
        Statutes, section 4A.08, and commented on by the office of 
        strategic and long-range planning; 
           (4) recommend a procedure for review and comment on 
        community-based plans; 
           (5) recommend a process for coordination of plans among 
        local jurisdictions; 
           (6) recommend an alternative dispute resolution method for 
        citizens and local governments to use to challenge proposed 
        plans or the implementation of plans; 
           (7) recommend incentives to encourage state agencies to 
        implement the goals of community-based planning; 
           (8) recommend incentives for local governments to develop 
        community-based plans, including for example, assistance with 
        computerized geographic information systems, builders' remedies 
        and density bonuses, and revised permitting processes; 
           (9) describe the tools and strategies that a county, city, 
        or town may use to achieve the goals, including, but not limited 
        to, densities, urban growth areas, purchase or transfer of 
        development rights programs, public investment surcharges, 
        transit and transit-oriented development, and zoning and other 
        official controls; 
           (10) recommend the time frame in which the community-based 
        plans must be completed; 
           (11) consider the need for ongoing stewardship and 
        oversight of sustainable development initiatives and the 
        community-based planning process; 
           (12) review and recommend changes to the community-based 
        planning framework established in this act; and 
           (13) make other recommendations to implement 
        community-based planning as the advisory council determines 
        would be necessary or helpful in achieving the goals. 
           Subd. 3.  [MEMBERSHIP.] The advisory council consists of 18 
        voting members who serve at the pleasure of the appointing 
        authority as follows: 
           (1) two members of the majority caucus of the house of 
        representatives appointed by the speaker, and two members of the 
        minority caucus appointed by the minority leader; 
           (2) four members of the senate appointed by the 
        subcommittee on committees of the committee on rules and 
        administration of the senate, two of whom shall be members of 
        the minority caucus; 
           (3) the director, or the director's designee, of the office 
        of strategic and long-range planning; 
           (4) three public members, at least one of whom must be 
        knowledgeable about and have experience in local government 
        issues or planning, appointed by the speaker of the house of 
        representatives; 
           (5) three public members, at least one of whom must be 
        knowledgeable about and have experience in local government 
        issues or planning, appointed by the subcommittee on committees 
        of the committee on rules and administration of the senate; and 
           (6) three public members, at least one of whom must be 
        knowledgeable about and have experience in local government 
        issues or planning, appointed by the governor.  
           The commissioners, or their designees, of the departments 
        of natural resources, agriculture, transportation, and trade and 
        economic development, and the chair, or the chair's designee, of 
        the metropolitan council shall serve as ex-officio members. 
           The advisory council may form an executive committee to 
        facilitate the work of the council. 
           Subd. 4.  [FIRST MEETING; CHAIR.] The director of the 
        office of strategic and long-range planning, or the director's 
        designee, shall convene the first meeting of the advisory 
        council.  At its first meeting, the advisory council shall 
        select from among its members a person to serve as chair. 
           Subd. 5.  [ADMINISTRATION.] The office of strategic and 
        long-range planning, with assistance from other state agencies 
        and the metropolitan council as needed, shall provide 
        administrative and staff assistance to the advisory council.  
        The attorney general shall provide advice on legal issues to the 
        advisory council. 
           Subd. 6.  [EXPENSES.] The office of strategic and 
        long-range planning shall compensate members of the advisory 
        council.  Members shall receive per diem and expenses as 
        provided by Minnesota Statutes, section 15.059, subdivision 3.  
           Subd. 7.  [EXPIRATION.] This section expires June 30, 1998. 
           Sec. 14.  [CITATION.] 
           Sections 1 to 13 may be cited as the "Community-based 
        Planning Act." 
           Sec. 15.  [APPLICATION.] 
           Section 12 applies in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 16.  [PILOT PROJECTS ESTABLISHED.] 
           The office of strategic and long-range planning shall 
        establish community-based comprehensive land use planning pilot 
        projects as specified in sections 17 to 21. 
           Sec. 17.  [PLAN SUBMITTAL; REVIEW.] 
           A county or joint planning district participating in a 
        pilot project must prepare a community-based comprehensive plan 
        as specified in Minnesota Statutes, section 394.232.  The county 
        or joint powers board must submit the plan to the office of 
        strategic and long-range planning within 24 months of the 
        county's or district's selection as a pilot project.  The office 
        shall review each plan to determine if it is consistent with the 
        community-based planning goals in Minnesota Statutes, section 
        4A.08.  The office shall complete its review and comment as 
        specified in Minnesota Statutes, section 394.232, subdivision 5. 
           Sec. 18.  [PLAN CONTENT.] 
           Subdivision 1.  [GOALS.] The plan must address the 
        community-based planning goals in Minnesota Statutes, section 
        4A.08.  
           Subd. 2.  [MUNICIPAL AND TOWN PLAN INCORPORATION.] The plan 
        must incorporate the community-based comprehensive plan of each 
        municipality and town in the county.  Incorporation of a 
        municipal or town plan is sufficient if the county or joint 
        powers board adopts a resolution approving and incorporating by 
        reference the plan or any subsequent amendments to the plan.  
           Subd. 3.  [URBAN GROWTH AREAS.] The plan must identify, 
        establish, and address urban growth areas, as defined in 
        Minnesota Statutes, section 462.352, subdivision 18, within the 
        county.  The land outside an urban growth area must be zoned as 
        permanent rural or agricultural land, or other appropriate land 
        use, and must be maintained at density levels consistent with 
        those uses.  The plan must also identify the density at which 
        the municipality wishes to develop. 
           Subd. 4.  [EXISTING PLANS.] If the county has a previously 
        adopted plan, the county board or joint powers board shall 
        review, update, and submit to the office of strategic and 
        long-range planning a revised plan and official controls meeting 
        the requirements of this section, including the community-based 
        comprehensive municipal plan for each municipality or town in 
        the county, if any, within 24 months of the county's or 
        district's selection as a pilot project. 
           Sec. 19.  [COORDINATION WITH ADJACENT COUNTIES.] 
           Before submitting the community-based comprehensive plan to 
        the office of strategic and long-range planning, the county or 
        joint powers board shall coordinate its plan with adjacent 
        counties.  The adjacent counties shall review and submit written 
        comments on the proposed plan to the board within 60 days of 
        receiving the plan.  
           Sec. 20.  [COORDINATION WITH METROPOLITAN COUNCIL.] 
           A county or joint planning district adjacent to the 
        metropolitan area shall coordinate its plan with the 
        metropolitan council, in relation to the council's development 
        guide. 
           The county or joint planning district shall not submit its 
        plan to the office of strategic and long-range planning until 
        the metropolitan council has had 60 days for review and comment 
        on the plan.  
           Sec. 21.  [LIMITATION ON PLAN AMENDMENT.] 
           The county or joint powers board shall not amend its plan 
        for an area inside an urban growth area that is outside a 
        municipality's jurisdiction without the municipality's approval. 
           Sec. 22.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
                                   ARTICLE 5 
                                MUNICIPAL BOARD 
           Section 1.  Minnesota Statutes 1996, section 115.49, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [EXTENSION OF SERVICE.] If a determination or 
        order is made by the pollution control agency under this section 
        that cooperation by contract is necessary and feasible between a 
        municipality and an unincorporated area located outside the 
        existing corporate limits of a municipality, the municipality 
        being required to provide or extend through a contract a 
        governmental service to an unincorporated area, during the 
        statutory 90-day period provided in this section to formulate a 
        contract, may in the alternative to formulating a service 
        contract to provide or extend the service, declare the 
        unincorporated area as described in the pollution control 
        agency's determination letter or order annexed to the 
        municipality under section 414.0335. 
           Sec. 2.  Minnesota Statutes 1996, section 414.0325, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INITIATING THE PROCEEDING.] One or more 
        townships and one or more municipalities, by joint resolution, 
        may designate an unincorporated area as in need of orderly 
        annexation.  The joint resolution will confer jurisdiction on 
        the board over annexations in the designated area and over the 
        various provisions in said agreement by submission of said joint 
        resolution to the executive director.  The resolution shall 
        include a description of the designated area and the reasons for 
        designation.  Thereafter, an annexation of any part of the 
        designated area may be initiated by: 
           (1) submitting to the executive director a resolution of 
        any signatory to the joint resolution; or 
           (2) the board of its own motion; or 
           (3) as provided in section 414.033, subdivision 2a. 
           Whenever the pollution control agency or other a state 
        agency pursuant to sections 115.03, 115.071, 115.49, or any law 
        giving a state agency similar powers other than the pollution 
        control agency, orders a municipality to extend a municipal 
        service to an area, such an order will confer jurisdiction on 
        the Minnesota municipal board to consider designation of the 
        area for orderly annexation. 
           If a joint resolution designates an area as in need of 
        orderly annexation and states that no alteration of its stated 
        boundaries is appropriate, the board may review and comment, but 
        may not alter the boundaries.  
           If a joint resolution designates an area as in need of 
        orderly annexation, provides for the conditions for its 
        annexation, and states that no consideration by the board is 
        necessary, the board may review and comment, but shall, within 
        30 days, order the annexation in accordance with the terms of 
        the resolution.  
           Sec. 3.  Minnesota Statutes 1996, section 414.033, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [NOTICE REQUIRED.] Before a municipality may 
        adopt an ordinance under subdivision 2, clause (2), (3), or (4), 
        or subdivision 2a, a municipality must hold a public hearing and 
        give 30 days' written notice by certified mail to the town or 
        towns affected by the proposed ordinance and to all landowners 
        within and contiguous to the area to be annexed.  
           Sec. 4.  Minnesota Statutes 1996, section 414.033, 
        subdivision 11, is amended to read: 
           Subd. 11.  [FLOODPLAIN; SHORELAND AREA.] When a 
        municipality declares land annexed to the municipality under 
        subdivision 2, clause (3), or subdivision 2a, and the land is 
        within a designated floodplain, as provided by section 103F.111, 
        subdivision 4, or a shoreland area, as provided by section 
        103F.205, subdivision 4, the municipality shall adopt or amend 
        its land use controls to conform to chapter 103F, and any new 
        development of the annexed land shall be subject to chapter 103F.
           Sec. 5.  Minnesota Statutes 1996, section 414.033, 
        subdivision 12, is amended to read: 
           Subd. 12.  [PROPERTY TAXES.] When a municipality annexes 
        land under subdivision 2, clause (2), (3), or (4), or 
        subdivision 2a, property taxes payable on the annexed land shall 
        continue to be paid to the affected town or towns for the year 
        in which the annexation becomes effective.  Thereafter, property 
        taxes on the annexed land shall be paid to the municipality.  In 
        the first year following the year the land was annexed, the 
        municipality shall make a cash payment to the affected town or 
        towns in an amount equal to 90 percent of the property taxes 
        paid in the year the land was annexed; in the second year, an 
        amount equal to 70 percent of the property taxes paid in the 
        year the land was annexed; in the third year, an amount equal to 
        50 percent of the property taxes paid in the year the land was 
        annexed; in the fourth year, an amount equal to 30 percent of 
        the property taxes paid in the year the land was annexed; and in 
        the fifth year, an amount equal to ten percent of the property 
        taxes paid in the year the land was annexed.  The municipality 
        and the affected township may agree to a different payment. 
           Sec. 6.  [414.0335] [ORDERED GOVERNMENTAL SERVICE 
        EXTENSION; ANNEXATION BY ORDINANCE.] 
           If a determination or order by the pollution control 
        agency, under section 115.49 or other similar statute is made, 
        that cooperation by contract is necessary and feasible between a 
        municipality and an unincorporated area located outside the 
        existing corporate limits of a municipality, the municipality 
        required to provide or extend through a contract a governmental 
        service to an unincorporated area, during the statutory 90-day 
        period provided in section 115.49 to formulate a contract, may 
        in the alternative to formulating a service contract to provide 
        or extend the service, declare the unincorporated area described 
        in the pollution control agency's determination letter or order 
        annexed to the municipality by adopting an ordinance and 
        submitting it to the municipal board or its successor.  The 
        municipal board or its successor may review and comment on the 
        ordinance but shall approve the ordinance within 30 days of 
        receipt.  The ordinance is final and the annexation is effective 
        on the date the municipal board or its successor approves the 
        ordinance.  Thereafter, the city shall amend its comprehensive 
        plan and official controls in accordance with chapter 462. 
           Sec. 7.  [414.10] [ALTERNATIVE PROCESS OF DISPUTE 
        RESOLUTION.] 
           Subdivision 1.  [DEFINITION.] For the purposes of 
        subdivision 2, a "party" or "parties" means a property owner or 
        the governing body or town board of a jurisdiction that files an 
        initiating document or a timely objection pursuant to this 
        chapter, and the governing body or town board of the 
        jurisdiction or jurisdictions in which the subject area is 
        located. 
           Subd. 2.  [CHAPTER 572A PROCESS.] As an alternative to the 
        procedure provided by this chapter, a party filing an initiating 
        document or timely objection with the municipal board may file 
        with the bureau of mediation services a written request for 
        mediation within 30 days of the filing as provided in section 
        572A.015.  The request for mediation must contain the written 
        consent of all parties to have the dispute settled through the 
        process provided by chapter 572A.  The filing party must also 
        file written notice with the municipal board notifying the board 
        that all parties have agreed to use the dispute resolution 
        process in chapter 572A. 
           Sec. 8.  [414.11] [MUNICIPAL BOARD SUNSET.] 
           The municipal board shall terminate on December 31, 1999, 
        and all of its authority and duties under this chapter shall be 
        transferred to the office of strategic and long-range planning 
        according to section 15.039. 
           Sec. 9.  [REPEALER.] 
           Minnesota Statutes 1996, section 414.033, subdivision 2a, 
        is repealed. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Sections 1 to 8 are effective the day following final 
        enactment.  Section 9 is effective July 1, 1997.  
                                   ARTICLE 6 
                               DISPUTE RESOLUTION 
           Section 1.  [572A.01] [COMPREHENSIVE PLANNING DISPUTES; 
        MEDIATION.] 
           Subdivision 1.  [FILING.] In the event of a dispute between 
        a county and the office of strategic and long-range planning 
        under section 394.232 or a county and a city under section 
        462.3535, regarding the development, content, or approval of a 
        community-based comprehensive land use plan, an aggrieved party 
        may file a written request for mediation, as provided in 
        subdivision 2, with the bureau of mediation services at any time 
        prior to a final action on a community-based comprehensive plan 
        or within 30 days of a final action on a community-based 
        comprehensive plan. 
           Subd. 2.  [MEDIATION.] Within ten days of receiving a 
        request for mediation in subdivision 1, the bureau of mediation 
        services shall provide written notice of the request for 
        mediation to the parties and provide a list of neutrals 
        experienced in land use planning or local government issues 
        obtained from the supreme court, Minnesota municipal board, 
        bureau of mediation services, Minnesota state bar association, 
        Hennepin county bar association, office of dispute resolution, 
        and others.  Within 30 days thereafter, the affected parties 
        shall select a mediator from the list of neutrals or someone 
        else acceptable to the parties and submit to mediation for a 
        period of 30 days facilitated by the bureau.  If the dispute 
        remains unresolved after the close of the 30-day mediation 
        period, the bureau shall prepare a report of its recommendations 
        and transmit the report within 30 days to the parties.  Within 
        60 days after the date of issuance of the mediator's report, the 
        dispute shall be submitted to binding arbitration as provided in 
        this chapter.  The mediator's report submitted to the parties is 
        informational only and is not admissible in arbitration. 
           Sec. 2.  [572A.015] [CHAPTER 414 DISPUTES; MEDIATION.] 
           Subdivision 1.  [FILING.] As provided by section 414.10, if 
        an initiating document or timely objection under chapter 414 is 
        filed with the municipal board, the filing party, jurisdiction, 
        or jurisdictions may also file a written request for mediation 
        with the bureau of mediation services within 30 days of filing 
        the initiating document or timely objection.  The request for 
        mediation must contain the written consent to the mediation and 
        arbitration process by all the parties, as defined in section 
        414.10, subdivision 1. 
           Subd. 2.  [MEDIATION.] Within ten days of receiving a 
        request for mediation, the bureau shall provide written notice 
        of the request for mediation to the parties and provide a list 
        of neutrals experienced in land use planning and local 
        government issues obtained from the supreme court, Minnesota 
        municipal board, bureau of mediation services, Minnesota state 
        bar association, Hennepin county bar association, office of 
        dispute resolution and others.  Within 30 days thereafter, the 
        affected parties, as defined in section 414.10, subdivision 1, 
        shall select a mediator from the list of neutrals or someone 
        else acceptable to the parties and submit to mediation for a 
        period of 30 days facilitated by the bureau.  If the dispute 
        remains unresolved after the close of the 30-day mediation 
        period, the bureau shall prepare a report of its recommendations 
        and transmit the report within 30 days to the parties.  Within 
        60 days after the date of issuance of the mediator's report, the 
        dispute shall be submitted to binding arbitration as provided in 
        this chapter.  The mediator's report submitted to the parties is 
        informational only and is not admissible in arbitration. 
           Sec. 3.  [572A.02] [ARBITRATION.] 
           Subdivision 1.  [SUBMITTAL TO BINDING ARBITRATION.] If a 
        dispute remains unresolved after the close of mediation, the 
        dispute shall be submitted to binding arbitration within 60 days 
        of issuance of the mediation report pursuant to the terms of 
        this section and the Uniform Arbitration Act, sections 
        572.08-572.30, except the period may be extended for an 
        additional 15 days as provided in this section.  In the event of 
        a conflict between the provisions of the Uniform Arbitration Act 
        and this section, this section controls. 
           Subd. 2.  [APPOINTMENT OF PANEL.] (a) The parties shall 
        each appoint one qualified arbitrator within 30 days of issuance 
        of the mediation report.  If a party does not appoint an 
        arbitrator within 30 days, the bureau of mediation services 
        shall appoint a qualified arbitrator from the list of neutrals 
        under sections 572A.01, subdivision 2, and 572A.015, subdivision 
        2, or someone else for the party.  The parties shall notify the 
        bureau prior to the close of the 30-day appointment period of 
        the name and address of their respective appointed arbitrator.  
        Each party is responsible for the fees and expenses for the 
        arbitrator it selects.  
           (b) After appointment of the two arbitrators to the 
        arbitration panel by the parties, or by the bureau should one or 
        both of the parties fail to act, the two appointed arbitrators 
        shall appoint a third arbitrator who must be learned in the law, 
        within 15 days of the close of the initial 30-day arbitrator 
        appointment period.  If the arbitrators cannot agree on the 
        selection of the third arbitrator within 15 days, the 
        arbitrators shall jointly submit a request to the district court 
        of the county in which the disputed area is located in 
        accordance with the selection procedures established in section 
        572.10.  Within 15 days of receipt of an application by the 
        district court, the district court shall select a neutral 
        arbitrator and notify the parties and the bureau of mediation 
        services of the name and address of the selected arbitrator.  
        The fees and expenses of the third arbitrator shall be shared 
        equally by the parties.  The third appointed arbitrator shall 
        act as chair of the arbitration panel and shall conduct the 
        proceedings.  If the district court selects the third 
        arbitrator, the date required for first hearing the matter may 
        be extended an additional 15 days. 
           Subd. 3.  [HEARING.] Except as otherwise provided, within 
        60 days, the matter must be brought on for hearing in accordance 
        with section 572.12.  The bureau of mediation services shall 
        provide for the proceedings to occur in the county in which the 
        majority of the affected property is located. 
           Subd. 4.  [CONTRACTS; INFORMATION.] The arbitration panel 
        shall have authority to contract with regional, state, county, 
        or local planning commissions or to hire expert consultants to 
        provide specialized information and assistance.  Any member of 
        the panel conducting or participating in any hearing shall have 
        the power to administer oaths and affirmations, to issue 
        subpoenas, to compel the attendance and testimony of witnesses, 
        and the production of papers, books, and documents.  Any costs 
        related to this subdivision shall be shared equally by the 
        parties. 
           Subd. 5.  [DECISION FACTORS.] In comprehensive planning 
        disputes, the arbitration panel shall consider the goals stated 
        in section 4A.08 and the following factors in making a 
        decision.  In all other disputes brought under this section, the 
        arbitration panel shall consider the following factors in making 
        a decision: 
           (1) present population and number of households, past 
        population, and projected population growth of the subject area 
        and adjacent units of local government; 
           (2) quantity of land within the subject area and adjacent 
        units of local government; and natural terrain including 
        recognizable physical features, general topography, major 
        watersheds, soil conditions, and such natural features as 
        rivers, lakes and major bluffs; 
           (3) degree of contiguity of the boundaries between the 
        municipality and the subject area; 
           (4) present pattern of physical development, planning, and 
        intended land uses in the subject area and the municipality 
        including residential, industrial, commercial, agricultural, and 
        institutional land uses and the impact of the proposed action on 
        those land uses; 
           (5) the present transportation network and potential 
        transportation issues, including proposed highway development; 
           (6) land use controls and planning presently being utilized 
        in the municipality and the subject area, including 
        comprehensive plans for development in the area and plans and 
        policies of the metropolitan council, and whether there are 
        inconsistencies between proposed development and existing land 
        use controls and the reasons therefore; 
           (7) existing levels of governmental services being provided 
        in the municipality and the subject area, including water and 
        sewer service, fire rating and protection, law enforcement, 
        street improvements and maintenance, administrative services, 
        and recreational facilities and the impact of the proposed 
        action on the delivery of said services; 
           (8) existing or potential environmental problems and 
        whether the proposed action is likely to improve or resolve 
        these problems; 
           (9) plans and programs by the municipality for providing 
        needed governmental services to the subject area; 
           (10) an analysis of the fiscal impact on the municipality, 
        the subject area, and adjacent units of local government, 
        including net tax capacity and the present bonded indebtedness, 
        and the local tax rates of the county, school district, and 
        township; 
           (11) relationship and effect of the proposed action on 
        affected and adjacent school districts and communities; 
           (12) adequacy of town government to deliver services to the 
        subject area; 
           (13) analysis of whether necessary governmental services 
        can best be provided through the proposed action or another type 
        of boundary adjustment; and 
           (14) if only a part of a township is annexed, the ability 
        of the remainder of the township to continue or the feasibility 
        of it being incorporated separately or being annexed to another 
        municipality. 
        Any party to the proceeding may present evidence and testimony 
        on any of the above factors at the hearing on the matter. 
           Subd. 6.  [DECISION.] The arbitrators, after a hearing on 
        the matter, shall make a decision regarding the dispute within 
        60 days and transmit an order to the parties and the office of 
        strategic and long-range planning or the municipal board.  
        Unless appealed by an aggrieved party within 30 days of receipt 
        of the arbitration panel's order by the municipal board, the 
        municipal board shall execute an order in accordance with the 
        arbitration panel's order and shall cause copies of the same to 
        be mailed to all parties entitled to mailed notice, the 
        secretary of state, the department of revenue, the state 
        demographer, individual property owners if initiated in that 
        manner, the affected county auditor, and any other party of 
        record.  The affected county auditor shall record the order 
        against the affected property. 
           Sec. 4.  [572A.03] [ARBITRATION PANEL DECISION STANDARDS.] 
           Subdivision 1.  [DECISION STANDARDS.] The arbitration 
        panel, based upon the factors in section 572A.02, subdivision 5, 
        shall decide the matter based upon the decision standards in 
        subdivisions 2 to 6.  
           Subd. 2.  [COMPREHENSIVE LAND USE PLANNING.] For 
        comprehensive land use planning disputes under section 462.3535, 
        if a community-based comprehensive plan addresses the goals of 
        section 4A.08 and the arbitrators find that the city's projected 
        estimates found in its comprehensive plan are reasonable with 
        respect to an identified urban growth area, the arbitration 
        panel may order approval of the city plan.  If the order is to 
        approve the community-based comprehensive plan, the order shall 
        contain notice directing the county to approve the city plan 
        within ten days of receipt of the arbitration order.  The city 
        shall, thereafter, adopt the plan.  If the order is to deny the 
        plan, the arbitration order shall state the reasons for the 
        denial in the order and transmit the order to the city, county, 
        and the office of strategic and long-range planning.  The city 
        shall within 30 days of receipt of the order amend its plan and 
        resubmit the plan to the county for review and approval under 
        this subdivision.  The county shall not unreasonably withhold 
        approval of the plan if the resubmitted city plan is in keeping 
        with the arbitration panel's order. 
           Subd. 3.  [MUNICIPAL INCORPORATIONS.] For municipal 
        incorporations under section 414.02, the arbitration panel may 
        order the incorporation if it finds that:  (1) the property to 
        be incorporated is now, or is about to become, urban or suburban 
        in character; (2) that the existing township form of government 
        is not adequate to protect the public health, safety, and 
        welfare; or (3) the proposed incorporation would be in the best 
        interests of the area under consideration.  The panel may deny 
        the incorporation if the area, or a part of it, would be better 
        served by annexation to an adjacent municipality.  The panel may 
        alter the boundaries of the proposed incorporation by increasing 
        or decreasing the area to be incorporated so as to include only 
        that property which is now, or is about to become, urban or 
        suburban in character, or may exclude property that may be 
        better served by another unit of government.  The panel may also 
        alter the boundaries of the proposed incorporation so as to 
        follow visible, clearly recognizable physical features for 
        municipal boundaries.  In all cases, the panel shall set forth 
        the factors which are the basis for the decision.  
           Subd. 4.  [ANNEXATIONS OF UNINCORPORATED PROPERTY.] For 
        annexations of unincorporated property under section 414.031 or 
        414.033, subdivisions 3 and 5, the arbitration panel may order 
        the annexation:  (1) if it finds that the subject area is now, 
        or is about to become, urban or suburban in character; (2) if it 
        finds that municipal government in the area proposed for 
        annexation is required to protect the public health, safety, and 
        welfare; or (3) if it finds that the annexation would be in the 
        best interest of the subject area.  If only a part of a township 
        is to be annexed, the panel shall consider whether the remainder 
        of the township can continue to carry on the functions of 
        government without undue hardship.  The panel shall deny the 
        annexation if it finds that the increase in revenues for the 
        annexing municipality bears no reasonable relation to the 
        monetary value of benefits conferred upon the annexed area.  The 
        panel may deny the annexation:  (1) if it appears that 
        annexation of all or a part of the property to an adjacent 
        municipality would better serve the interests of the residents 
        of the property; or (2) if the remainder of the township would 
        suffer undue hardship. 
           The panel may alter the boundaries of the area to be 
        annexed by increasing or decreasing the area so as to include 
        only that property which is now or is about to become urban or 
        suburban in character or to add property of that character 
        abutting the area proposed for annexation in order to preserve 
        or improve the symmetry of the area, or to exclude property that 
        may better be served by another unit of government.  The panel 
        may also alter the boundaries of the proposed annexation so as 
        to follow visible, clearly recognizable physical features.  If 
        the panel determines that part of the area would be better 
        served by another municipality or township, the panel may 
        initiate and approve annexation on its own motion by conducting 
        further hearings.  In all cases, the arbitration panel shall set 
        forth the factors that are the basis for the decision. 
           Subd. 5.  [ORDERLY ANNEXATIONS WITHIN A DESIGNATED 
        AREA.] For orderly annexations within a designated area under 
        section 414.0325, which require a hearing, the arbitration panel 
        may order the annexation:  (1) if it finds that the subject area 
        is now or is about to become urban or suburban in character and 
        that the annexing municipality is capable of providing the 
        services required by the area within a reasonable time; (2) if 
        it finds that the existing township form of government is not 
        adequate to protect the public health, safety, and welfare; or 
        (3) if it finds that annexation would be in the best interests 
        of the subject area.  The board may deny the annexation if it 
        conflicts with any provision of the joint agreement.  The board 
        may alter the boundaries of the proposed annexation by 
        increasing or decreasing the area so as to include that property 
        within the designated area which is in need of municipal 
        services or will be in need of municipal services. 
           If the annexation is denied, no proceeding for the 
        annexation of substantially the same area may be initiated 
        within two years from the date of the board's order unless the 
        new proceeding is initiated by a majority of the area's property 
        owners and the petition is supported by affected parties to the 
        resolution.  In all cases, the arbitration panel shall set forth 
        the factors which are the basis for the decision. 
           Subd. 6.  [CONSOLIDATION OF MUNICIPALITIES.] For municipal 
        consolidations under section 414.041, the arbitration panel 
        shall consider and may accept, amend, return to the commission 
        for amendment or further study, or reject the commission's 
        findings and recommendations based upon the panel's written 
        determination of what is in the best interests of the affected 
        municipalities.  The panel shall order the consolidation if it 
        finds that consolidation will be for the best interests of the 
        municipalities.  In all cases, the arbitration panel shall set 
        forth the factors that are the basis for the decision.  
           Subd. 7.  [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] For 
        detachments of property from a municipality under section 
        414.06, the arbitration panel may order the detachment if it 
        finds that the requisite number of property owners have signed 
        the petition if initiated by the property owners, that the 
        property is rural in character and not developed for urban 
        residential, commercial, or industrial purposes, that the 
        property is within the boundaries of the municipality and abuts 
        a boundary, that the detachment would not unreasonably affect 
        the symmetry of the detaching municipality, and that the land is 
        not needed for reasonably anticipated future development.  The 
        panel shall deny the detachment if it finds that the remainder 
        of the municipality cannot continue to carry on the functions of 
        government without undue hardship.  The panel shall have 
        authority to decrease the area of property to be detached and 
        may include only a part of the proposed area to be detached.  If 
        the tract abuts more than one township, it shall become a part 
        of each township, being divided by projecting through it the 
        boundary line between the townships.  The detached area may be 
        relieved of the primary responsibility for existing indebtedness 
        of the municipality and be required to assume the indebtedness 
        of the township of which it becomes a part, in the proportion 
        that the panel deems just and equitable considering the amount 
        of taxes due and delinquent and the indebtedness of each 
        township and the municipality affected, if any, and for what 
        purpose the indebtedness was incurred, in relation to the 
        benefit inuring to the detached area as a result of the 
        indebtedness and the last net tax capacity of the taxable 
        property in each township and municipality. 
           Subd. 8.  [CONCURRENT DETACHMENT AND ANNEXATION OF 
        INCORPORATED PROPERTY.] For concurrent detachment and annexation 
        of incorporated property under section 414.061, subdivisions 4 
        and 5, the arbitration panel shall order the proposed action if 
        it finds that it will be for the best interests of the 
        municipalities and the property owner.  In all cases, the 
        arbitration panel shall set forth the factors which are the 
        basis for the decision. 
           Sec. 5.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
           Presented to the governor May 27, 1997 
           Signed by the governor May 30, 1997, 1:35 p.m.

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