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1984 Minnesota Session Laws

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                         Laws of Minnesota 1984 

                        CHAPTER 544-S.F.No. 1408
           An act relating to state government; recodifying the 
          laws governing the department of administration; 
          allowing the commissioner of administration to 
          transfer to local government units certain supplies, 
          materials, and equipment; allowing the commissioner of 
          administration to charge a price sufficient to cover 
          costs when selling copies of laws and resolutions; 
          allowing the commissioner of administration to lease 
          office space and purchase supplies and equipment 
          without the approval of the governor; allowing the 
          commissioner of administration to provide for the use 
          of certain motor vehicles by the governor and 
          lieutenant governor; relating to the use of state 
          vehicles and compensation for use of personal vehicles;
          including in the definition of the term "employee" for 
          purposes of workers' compensation a voluntary 
          uncompensated worker accepted by the commissioner of 
          administration; providing for criminal and juvenile 
          defense grants to be administered by the board of 
          public defense; specifying the United States 
          department of labor as the entity which designates a 
          labor surplus area; amending Minnesota Statutes 1982, 
          sections 15.014, subdivision 2; 15.0593; 15.62, 
          subdivision 2; 16A.065; 43A.08, subdivision 1; 43A.33, 
          subdivisons 1 and 3; and 645.445, subdivision 5; and 
          Minnesota Statutes 1983 Supplement, sections 43A.10, 
          subdivision 8; 43A.23, subdivision 1; 116L.03, 
          subdivision 6; and 176.011, subdivision 9; proposing 
          new law coded in Minnesota Statutes, chapters 16A and 
          611; proposing new law coded as Minnesota Statutes, 
          chapter 16B; repealing Minnesota Statutes 1982, 
          sections 16.01; 16.011; 16.012; 16.014; 16.02, 
          subdivisions 1, 2, 2a, 3, 4, 5, 5a, 6, 6a, 6b, 7, 8, 
          9, 10, 13, 15, 16, 17, 18, 19, 24, 25, 26, and 27; 
          16.021; 16.022; 16.023; 16.0231; 16.024; 16.025; 
          16.026; 16.028; 16.03; 16.04; 16.05; 16.06; 16.061; 
          16.062; 16.063; 16.064; 16.065; 16.066; 16.068; 16.07; 
          16.073; 16.075; 16.08; 16.081; 16.082; 16.083, 
          subdivision 2; 16.086, subdivision 2; 16.09; 16.095; 
          16.096; 16.098, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 
          10, and 11; 16.12; 16.125; 16.135; 16.139; 16.172; 
          16.21; 16.22; 16.23; 16.24; 16.243; 16.244; 16.251; 
          16.281; 16.32, subdivisions 1, 3, and 4; 16.34; 
          16.365; 16.381; 16.51; 16.52; 16.53; 16.54; 16.55; 
          16.56; 16.71; 16.72; 16.723; 16.73; 16.75, 
          subdivisions 1, 2, 3, 4, 5, 6, and 8; 16.753, 
          subdivisions 1, 2, 4, 5, and 6; 16.756; 16.76; 16.77; 
          16.78; 16.80; 16.81; 16.811; 16.82, subdivision 2; 
          16.821; 16.822; 16.823; 16.824; 16.825; 16.826; 
          16.827; 16.83; 16.84; 16.85; 16.851, subdivisions 1 
          and 2; 16.854; 16.86; 16.861, subdivisions 1, 2, 4, 5, 
          6, and 7; 16.862; 16.8632; 16.864; 16.865; 16.866, 
          subdivision 2; 16.867; 16.868; 16.869; 16.871; 16.872, 
          subdivisions 1, 2, and 3; 16.874; 16.88; 16.89; 16.90, 
          subdivisions 1, 2, and 3; 16.931; 16.94; 16.95; 16.955;
          16.96; and 16.97; and Minnesota Statutes 1983 
          Supplement, sections 16.02, subdivisions 10a, 14, 28, 
          and 29; 16.072; 16.0721; 16.083, subdivisions 1, 1a, 
          3, 4, 4a, 4b, 5 and 6; 16.084; 16.085; 16.086, 
          subdivision 1; 16.092; 16.098, subdivision 4; 16.28; 
          16.32, subdivision 2; 16.321; 16.75, subdivisions 7 
          and 9; 16.753, subdivision 3; 16.82, subdivision 1; 
          16.851, subdivision 3; 16.861, subdivision 3; 16.863; 
          16.866, subdivision 1; 16.872; 16.90, subdivision 4; 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 15.014, 
subdivision 2, is amended to read:  
    Subd. 2.  [CREATION; LIMITATIONS.] A commissioner of a 
state department, a state board or other agency having the 
powers of a board as defined in section 15.012, may create 
advisory task forces to advise the commissioner or agency on 
specific programs or topics within the jurisdiction of the 
department or agency.  A task force so created shall have no 
more than 15 members.  The task force shall expire and the terms 
and removal of members shall be as provided in section 15.059, 
subdivision 6.  The members of no more than four task forces 
created pursuant to this section in a department or agency may 
be paid expenses in the same manner and amount as paid to state 
employees authorized by the commissioner's plan adopted 
according to section 43A.18, subdivision 2.  No member of a task 
force shall be compensated for his services in a manner not 
provided for in statute.  A commissioner, board, council, 
committee, or other state agency may not create any other 
multi-member agency unless specifically authorized by statute or 
unless the creation of the agency is authorized by federal law 
as a condition precedent to the receipt of federal money. 
     Sec. 2.  Minnesota Statutes 1982, section 15.0593, is 
amended to read: 
    15.0593 [AGENCIES CREATED BY EXECUTIVE ORDER.] 
    The governor may by executive order create in his office 
advisory task forces, councils and committees to advise or 
assist him on matters relating to the laws of this state.  A 
task force, council or committee so created shall have no more 
than 15 members, and vacancies may be filled by the governor.  
Members of a task force, council or committee shall receive no 
per diem but may be paid expenses in the same manner as state 
employees as authorized by the commissioner's plan adopted 
according to section 43A.18, subdivision 2.  A task force, 
council or committee shall expire two years after the date of 
order unless otherwise specified consistent with section 4.035, 
subdivision 3.  The task force, council or committee shall be 
named beginning with the prefix "Governor's Task Force on," 
"Governor's Council on" or "Governor's Committee on."  The 
governor shall not create a board, commission, authority or 
other similar multi-member agency except as provided in this 
section.  A multi-member agency previously created by executive 
order shall be renamed and shall be consistent with the 
provisions of this section.  Nothing in this section shall 
apply, to the extent inconsistent with statute or federal law, 
to any multi-member agency specifically authorized by statute or 
specifically authorized by federal law as a condition precedent 
to the receipt of federal moneys. 
     Sec. 3.  Minnesota Statutes 1982, section 15.62, 
subdivision 2, is amended to read:  
    Subd. 2.  A public employee who qualifies as a member of 
the United States Olympic team for athletic competition on the 
world, Pan American or olympic level, in a sport contested in 
either Pan American or olympic competitions in a sport 
sanctioned by the International Olympic Committee, shall be 
granted a leave of absence without loss of pay or other benefits 
or rights for the purpose of preparing for and engaging in the 
competition.  In no event shall the paid leave under this 
section exceed the period of the official Olympic training camp 
and Olympic competition combined or 90 calendar days a in an 
Olympic year, whichever is less. 
    Sec. 4.  Minnesota Statutes 1982, section 16A.065, is 
amended to read:  
    16A.065 [ADVANCE PAYMENTS AND DEPOSITS.] 
    Notwithstanding any other law to the contrary, the 
commissioner of finance may allow advance deposits or payments 
by any department for the procurement of software or software 
maintenance services for state-owned or leased electronic data 
processing equipment, and may allow advance deposits by any 
department with the Library of Congress and federal Supervisor 
of Documents for items to be purchased from those federal 
agencies.  
    Sec. 5.  [16A.722] [REIMBURSEMENT FOR LOSS OR DAMAGE TO 
STATE PROPERTY, USE OF PROCEEDS.] 
    Notwithstanding any other law to the contrary, a state 
department or agency that receives a reimbursement for the loss 
of or damage to state property may deposit the reimbursement in 
the current year's account.  The reimbursement is reappropriated 
for the purpose of replacing or repairing the state property.  

                     COMMISSIONER OF ADMINISTRATION 
    Sec. 6.  [16B.01] [DEFINITIONS.] 
    Subdivision 1.  For purposes of chapter 16B, the following 
terms have the meanings given them, unless the context clearly 
indicates otherwise.  
    Subd. 2.  [AGENCY.] "Agency" means any state officer, 
employee, board, commission, authority, department, or other 
agency of the executive branch of state government.  
    Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of administration.  
    Subd. 4.  [STATE CONTRACT.] "State contract" means any 
written instrument containing the elements of offer, acceptance 
and consideration to which a state agency is a party.  
    Subd. 5.  [SUPPLIES, MATERIALS, AND EQUIPMENT.] "Supplies," 
"materials," and "equipment" includes articles and things used 
by or furnished to an agency, including printing, binding, and 
publication of books and records, repairs, and improvements.  
    Subd. 6.  [UTILITY SERVICES.] "Utility services" includes 
telephone, telegraph, postal, electric light, and power service, 
and all other services required for the maintenance, operation, 
and upkeep of buildings and offices.  
    Sec. 7.  [16B.02] [DEPARTMENT OF ADMINISTRATION.] 
    The department of administration is under the supervision 
and control of the commissioner of administration, who is 
appointed by the governor under section 15.06.  
    Sec. 8.  [16B.03] [APPOINTMENTS.] 
    The commissioner is authorized to appoint staff, including 
a deputy commissioner, in accordance with chapter 43A.  
    Sec. 9.  [16B.04] [AUTHORITY.] 
    Subdivision 1.  [RULEMAKING AUTHORITY.] Subject to chapter 
14, the commissioner may adopt, amend, and rescind rules 
relating to any purpose, responsibility, or authorization in 
chapter 16B.  Rules adopted must comply with any provisions in 
chapter 16B which specify or restrict the adoption of particular 
rules.  
    Subd. 2.  [POWERS AND DUTIES, GENERAL.] Subject to other 
provisions of this chapter, the commissioner is authorized to:  
    (1) supervise, control, review, and approve all state 
contracts and purchasing;  
    (2) provide agencies with supplies and equipment and 
operate all central store or supply rooms serving more than one 
agency;  
    (3) approve all computer plans and contracts, and oversee 
the state's data processing system;  
    (4) investigate and study the management and organization 
of agencies, and reorganize them when necessary to ensure their 
effective and efficient operation;  
    (5) manage and control state property, real and personal;  
    (6) maintain and operate all state buildings including the 
state capitol building and grounds;  
    (7) supervise, control, review, and approve all capital 
improvements to state buildings and the capitol building and 
grounds;  
    (8) provide central duplicating, printing, and mail 
facilities;  
    (9) oversee publication of official documents and provide 
for their sale;  
    (10) manage and operate parking facilities for state 
employees and a central motor pool for travel on state business; 
and 
    (11) establish and administer a state building code.  
    Subd. 3.  [DELEGATION FROM GOVERNOR.] The governor, unless 
otherwise provided by law, may delegate to the commissioner the 
administration of programs and projects of the office of the 
governor directed by either state or federal law, or which may 
be made available to the state under a grant of funds either 
public or private.  Unless specifically prohibited by law, the 
governor may delegate to the commissioner general supervision of 
any program or activity of any agency the head of which is 
either appointed by the governor or by a gubernatorially 
appointed board.  The provisions of this subdivision shall not 
be construed as authority to transfer programs or activities, or 
part of them, from one department to another.  
    Sec. 10.  [16B.05] [DELEGATION BY COMMISSIONER.] 
    Subdivision 1.  [DELEGATION OF DUTIES BY COMMISSIONER.] The 
commissioner may delegate duties imposed by this chapter to the 
head of an agency and to any of his subordinates.  Delegated 
duties are to be exercised in the name of the commissioner and 
under his supervision and control.  
    Subd. 2.  [FACSIMILE SIGNATURES.] When authorized by the 
commissioner, facsimile signatures may be used by personnel of 
the department of administration in accordance with his 
delegated authority and his instructions, copies of which shall 
be filed with the commissioner of finance, state treasurer, and 
the secretary of state.  A facsimile signature, when used in 
accordance with his delegated authority and his instructions, is 
as effective as an original signature. 

                        CONTRACTS AND PURCHASES 
    Sec. 11.  [16B.06] [CONTRACT MANAGEMENT AND REVIEW.] 
    Subdivision 1.  [DUTIES OF COMMISSIONER.] (a) [CONTRACT 
MANAGEMENT.] The commissioner shall perform all contract 
management and review functions for state contracts, except 
those functions performed by the contracting agency, the 
attorney general, or the commissioner of finance.  All agencies 
shall fully cooperate with the commissioner in the management 
and review of state contracts.  A delegation of the 
commissioner's duties under this section to the head of an 
agency must be filed with the secretary of state and may not, 
except with respect to delegations within the department of 
administration, exceed two years in duration.  
    (b) [PURCHASING.] The commissioner shall purchase, rent, or 
otherwise provide for the furnishing of all supplies, materials, 
equipment, and utility services.  The commissioner may lease, 
rent, or sell supplies, equipment, and services to agencies. The 
commissioner shall purchase from the state correctional 
institutions, the University of Minnesota, and other state 
institutions all articles manufactured by them which are usable 
by the state.  All purchase orders must be made on a form 
prescribed by the attorney general.  
    Subd. 2.  [VALIDITY OF STATE CONTRACTS.] A state contract 
or lease is not valid and the state is not bound by it until it 
has first been executed by the head of the agency which is a 
party to the contract and has been approved in writing by the 
commissioner or a delegate, under this section, by the attorney 
general or a delegate as to form and execution, and by the 
commissioner of finance or a delegate who shall determine that 
the appropriation and allotment have been encumbered for the 
full amount of the contract liability.  The head of the agency 
may delegate the execution of specific contracts or specific 
types of contracts to a deputy or assistant head within his 
agency if the delegation has been approved by the commissioner 
of administration and filed with the secretary of state.  A copy 
of every contract or lease extending for a term longer than one 
year must be filed with the commissioner of finance.  
    Subd. 3.  [CONTRACT ADMINISTRATION.] Upon entering into a 
state contract, an agency bears full responsibility for the 
diligent administration and monitoring of the contract.  The 
commissioner may require an agency to report to the commissioner 
at any time on the status of any outstanding state contract to 
which the agency is a party.  
    Subd. 4.  [SUBJECT TO AUDIT.] A contract made by or under 
the supervision of the commissioner, an agency, or any county or 
unit of local government shall include an audit clause that 
provides that the books, records, documents, and accounting 
procedures and practices of the contractor relevant to the 
contract are subject to examination by the contracting agency, 
and either the legislative auditor or the state auditor as 
appropriate.  
    Subd. 5.  [AUTHORITY OF ATTORNEY GENERAL.] The attorney 
general may sue to avoid the obligation of an agency to pay 
under a state contract or to recover payments made if services 
performed under the contract are so unsatisfactory, incomplete, 
or inconsistent with the price that payment would involve unjust 
enrichment.  The contrary opinion of the contracting agency does 
not affect the power of the attorney general under this 
subdivision.  
    Sec. 12.  [16B.07] [COMPETITIVE BIDS.] 
    Subdivision 1.  [APPLICATION.] Except as otherwise provided 
by this chapter, all contracts for construction or repairs and 
all purchases of and all contracts for supplies, materials, 
purchase or rental of equipment, and utility services must be 
based on competitive bids, and all sales of property must be to 
the highest responsible bidder after advertising for bids 
pursuant to this section.  
    Subd. 2.  [REQUIREMENT CONTRACTS.] Standard requirement 
price contracts for supplies or services to be purchased by the 
state must be established by competitive bids.  The standard 
requirement price contracts may contain escalation clauses and 
may provide for a negotiated price increase or decrease based 
upon a demonstrable industrywide or regional increase or 
decrease in the vendor's costs.  The term of these contracts may 
not exceed two years with an option on the part of the state to 
renew for an additional two years.  
    Subd. 3.  [PUBLICATION OF NOTICE; EXPENDITURES OVER 
$5,000.] If the amount of an expenditure or sale is estimated to 
exceed $5,000, sealed bids must be solicited by public notice 
inserted at least once in a newspaper or trade journal not less 
than seven days before the final date of submitting bids.  The 
commissioner shall designate the newspaper or trade journal for 
that publication, and may designate different newspapers or 
journals according to the nature of the purchase or contract. 
The commissioner shall also solicit sealed bids by sending 
notices by mail to all prospective bidders known to the 
commissioner, and by posting notice on a public bulletin board 
in the commissioner's office at least five days before the final 
date of submitting bids.  All bids must be sealed when they are 
received and must be opened in public at the hour stated in the 
notice.  All original bids and all documents pertaining to the 
award of a contract must be retained and made a part of a 
permanent file or record and remain open to public inspection.  
    Subd. 4.  [PURCHASES, SALES, OR RENTALS; $5,000 OR LESS.] 
All purchases or sales the amount of which is estimated to be 
$5,000 or less may be made either upon competitive bids or in 
the open market, in the discretion of the commissioner.  So far 
as practicable, however, they must be based on at least three 
competitive bids which must be permanently recorded.  
    Subd. 5.  [STANDARD SPECIFICATIONS, SECURITY.] Contracts 
and purchases must be based on the standard specifications 
prescribed and enforced by the commissioner under this chapter, 
unless otherwise expressly provided.  Each bidder for a contract 
must furnish security approved by the commissioner to insure the 
making of the contract for which he bids.  
    Sec. 13.  [16B.08] [BIDS NOT REQUIRED.] 
    Subdivision 1.  [UTILITY SERVICES.] Competitive bids are 
not required for utility services where no competition exists or 
where rates are fixed by law or ordinance.  
    Subd. 2.  [SINGLE SOURCE OF SUPPLY.] Competitive bidding is 
not required for purchases clearly and legitimately limited to a 
single source of supply, and the purchase price may be best 
established by direct negotiation.  
    Subd. 3.  [AUCTION IN LIEU OF BIDS.] The commissioner, in 
lieu of advertising for bids, may sell buildings and other 
personal property owned by the state and not needed for public 
purposes at public auction to the highest responsible bidder.  A 
sale under this subdivision may not be made until publication of 
notice of the sale in a newspaper of general circulation in the 
area where the property is located and any other advertising the 
commissioner directs.  Any of the property may be withdrawn from 
the sale prior to the completion of the sale unless the auction 
has been announced to be without reserve.  If the sale is made 
at public auction a duly licensed auctioneer must be retained to 
conduct the sale.  The auctioneer's fees must be paid from the 
proceeds from which an amount sufficient to pay them is 
appropriated.  
    Subd. 4.  [NEGOTIATED CONTRACTS.] In lieu of any of the 
other requirements of this chapter, the commissioner may 
negotiate a contract for public work to be performed at a state 
owned institution or installation if the cost does not exceed 
$5,000 and if the head of the affected state agency requests the 
commissioner to do so.  The commissioner shall have prepared 
whatever plans and specifications for the public work he deems 
necessary to protect the public interest.  Contractor's bonds or 
security pursuant to chapter 574 are not required for contracts 
entered into pursuant to this subdivision.  
    Subd. 5.  [FEDERAL GENERAL SERVICES ADMINISTRATION PRICE 
SCHEDULES.] Notwithstanding anything in this chapter to the 
contrary, the commissioner may, instead of soliciting bids, 
contract for purchases with suppliers who have published 
schedules of prices effective for sales to the General Services 
Administration of the United States.  These contracts may be 
entered into, regardless of the amount of the purchase price, if 
the commissioner considers them advantageous and if the purchase 
price of all the commodities purchased under the contract do not 
exceed the price specified by the schedule.  
    Subd. 6.  [EMERGENCY PURCHASES.] In emergencies the 
commissioner may, without calling for bids, contract directly 
for the repair, rehabilitation, and improvement of a state owned 
structure or may authorize an agency to do so, and may purchase 
or may authorize an agency to purchase directly supplies, 
materials, equipment, or utility services for immediate use.  An 
emergency for the purposes of this subdivision is an unforeseen 
occurrence or combination of circumstances which calls for 
immediate action in the public interest.  
    Subd. 7.  [SPECIFIC PURCHASES.] The following may be 
purchased without regard to the competitive bidding requirements 
of this chapter:  
    (1) fiber used in the manufacture of binder twine, ply 
twines, and rope at the state correctional facilities; 
     (2) merchandise for resale at state park refectories or 
facility operations;  
    (3) farm and garden products, which may be sold at the 
prevailing market price on the date of the sale;  
    (4) meat for other state institutions from the vocational 
school maintained at Pipestone by Independent School District 
No. 583; and 
    (5) furniture from the Minnesota correctional facility-St. 
Cloud.  
    Sec. 14.  [16B.09] [CONTRACTS AND PURCHASES, AWARD.] 
    Subdivision 1.  [LOWEST RESPONSIBLE BIDDER.] All state 
contracts and purchases made by or under the supervision of the 
commissioner or an agency for which competitive bids are 
required must be awarded to the lowest responsible bidder, 
taking into consideration conformity with the specifications, 
terms of delivery, and other conditions imposed in the call for 
bids.  The commissioner may decide which is the lowest 
responsible bidder for all purchases.  As to contracts other 
than for purchases, the head of the interested agency shall make 
the decision, subject to the approval of the commissioner.  Any 
bid may be rejected.  In a case where competitive bids are 
required and where all bids are rejected, new bids, if 
solicited, must be called for as in the first instance, unless 
otherwise provided by law.  
    Subd. 2.  [ALTERATIONS AND ERASURES.] A bid containing an 
alteration or erasure of any price contained in the bid which is 
used in determining the lowest responsible bid must be rejected 
unless the alteration or erasure is corrected pursuant to this 
subdivision.  An alteration or erasure may be crossed out and 
the correction printed in ink or typewritten adjacent to it and 
initialed in ink by the person signing the bid.  
    Subd. 3.  [SPECIAL CIRCUMSTANCES.] The commissioner may 
reject the bid of any bidder who has failed to perform a 
previous contract with the state.  In the case of identical low 
bids from two or more bidders, the commissioner may, in his 
discretion, use negotiated procurement methods with the tied low 
bidders for that particular transaction, so long as the price 
paid does not exceed the low tied bid price.  
    Subd. 4.  [RECORD.] A record must be kept of all bids, 
including names of bidders, amounts of bids, and each successful 
bid.  This record is open to public inspection.  
    Sec. 15.  [16B.10] [RECIPROCAL PREFERENCE.] 
    Subdivision 1.  [RESIDENT PREFERENCE.] When a public 
contract is to be awarded to the lowest responsible bidder a 
resident bidder must be given preference over a nonresident 
bidder from a state which gives or requires a preference to 
bidders from that state.  The preference shall be equal to the 
preference given or required by the state of the nonresident 
bidder.  
    Subd. 2.  [DEFINITION.] "Resident bidder" as used in this 
section means a person, firm, or corporation authorized to 
engage in business in the state of Minnesota and having a bona 
fide establishment for doing business within the state of 
Minnesota on the date when any bid for a public contract is 
first advertised or announced, and includes a foreign 
corporation authorized to engage in business in Minnesota and 
having a bona fide establishment for the doing of business 
within the state.  
    Subd. 3.  [EXCEPTION.] The provisions of subdivisions 1 and 
2 do not apply to a contract for a project for which federal 
funds are available.  
    Sec. 16.  [16B.11] [PREFERENCE FOR MINNESOTA CONTRACTORS.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meanings given them:  
    (a) "Municipality" has the meaning assigned to it in 
section 471.345, subdivision 1;  
    (b) "Public agency" includes all state agencies, the 
University of Minnesota, the state university board, and the 
state board for community colleges;  
    (c) "Resident" means:  
    (1) any individual who has been a resident of Minnesota for 
one year or more immediately prior to bidding on or performing 
work under the contract;  
    (2) any partnership or association whose members have been 
residents of Minnesota for one year or more immediately prior to 
bidding on or performing work under the contract; and 
    (3) a corporation, incorporated in Minnesota, which has 
been in existence for one year or more immediately prior to 
bidding on or performing work under the contract, or which has 
its principal place of business in Minnesota; and 
    (d) "State agency" means an agency as defined in section 
14.02, subdivision 2.  
    Subd. 2.  [RESIDENT CONTRACTORS PREFERRED.] Notwithstanding 
any other law to the contrary, a contract awarded by a public 
agency for the engineering services, erection, construction, 
alteration, or repair of a public building or structure, or for 
any public work or improvement for which competitive bidding is 
not required by law, must be awarded to a Minnesota resident. If 
competitive bidding is required by law, the contract must be 
awarded to the resident making the lowest responsible bid if the 
resident's bid is not more than ten percent higher than the 
lowest responsible nonresident bid.  A successful resident 
bidder may not subcontract more than 20 percent of the work 
covered by the contract to nonresident subcontractors.  
    Subd. 3.  [MINNESOTA LABOR PREFERRED.] All contracts 
subject to subdivision 2 must require that, wherever possible, 
resident laborers, workers, and mechanics be used to perform all 
work covered by the contract.  
    Subd. 4.  [PREFERENCE SUBJECT TO FEDERAL LAW.] The 
provisions of this section are subject to applicable laws of the 
United States and regulations of federal agencies governing the 
use and payment of funds granted or advanced by the United 
States.  
    Sec. 17.  [16B.12] [PREFERENCE FOR MINNESOTA AND AMERICAN 
MADE MATERIALS.] 
    Subdivision 1.  [DEFINITIONS.] As used in this section, the 
following terms have the meanings given them:  
    (a) "Public agency" has the meaning assigned to it in 
section 16, subdivision 1, clause (b), and includes any 
contractor acting pursuant to a contract with a public agency;  
    (b) "Materials" means any goods, supplies, equipment or any 
other tangible products or materials, including foods;  
    (c) "Manufactured" means mined, grown, produced, 
manufactured, fabricated or assembled;  
    (d) "Manufactured in Minnesota" means manufactured in whole 
or in substantial part within Minnesota, or that the majority of 
its components were manufactured in whole or in substantial part 
in Minnesota, or manufactured in the United States by an 
individual, corporation, partnership or association;  
    (e) "Manufactured in the United States" means manufactured 
in whole or in substantial part within the United States or that 
the majority of the component parts thereof were manufactured in 
whole or in substantial part in the United States;  
    (f) "Purchase" means acquire by purchase or lease.  
    Subd. 2.  [PURCHASE PREFERENCE.] Notwithstanding the 
provisions of any other law to the contrary, no materials may be 
purchased by a public agency for use for governmental purposes 
which are not manufactured in Minnesota or the United States, 
except as may be provided in this section.  When all other 
factors are substantially equal, preference must be given first 
to those products which are manufactured to the greatest extent 
in Minnesota, and second to those products which are 
manufactured to the greatest extent in the United States.  To 
the extent possible, specifications must be written so as to 
permit the public agency to purchase materials manufactured in 
Minnesota.  
    Subd. 3.  [EXEMPTIONS.] Subdivision 2 does not apply if the 
person having contracting authority in respect to the purchase 
determines that (1) the materials are not manufactured in 
Minnesota or the United States in sufficient or reasonably 
available quantities, (2) the price or bid of the materials 
exceeds by more than ten percent the price or bid of available 
and comparable materials manufactured outside of Minnesota or 
the United States, (3) the quality of the materials is 
substantially less than the quality of comparably priced 
available materials manufactured outside of Minnesota or the 
United States, or (4) the purchase of the materials manufactured 
in Minnesota or the United States is otherwise not in the public 
interest.  Subdivision 2 also does not apply if the materials 
are purchased with a view to commercial resale or with a view to 
use in the production of goods for commercial sale.  

                     SPECIAL PURCHASING SITUATIONS 
    Sec. 18.  [16B.13] [ADVERTISEMENT OF HIGHWAY CONTRACTS.] 
    Notwithstanding anything in chapter 16B to the contrary, 
all contracts for the repair, improvement, maintenance, or 
construction of highways or highway bridges must be advertised 
and let as provided by law for highway construction contracts.  
    Sec. 19.  [16B.14] [CERTAIN VEHICLES.] 
    Upon the written request of the commissioner of public 
safety, motor vehicles for specific use by investigative and 
undercover agents of the department of public safety must be 
purchased by the brand make and model.  All other provisions of 
this chapter relating to competitive bidding apply to purchases 
covered by this section.  
    Sec. 20.  [16B.15] [ELECTRONIC DATA PROCESSING EQUIPMENT.] 
    Subdivision 1.  [COMMISSIONER MAY REJECT BIDS.] The 
commissioner may reject all bids for electronic data processing 
equipment, related equipment, and software and may negotiate a 
contract for this equipment if the commissioner finds the bids 
to be unsatisfactory because of failure to fully comply with the 
specifications, terms, and conditions of the call for bids.  The 
contract must be awarded to the vendor offering the lowest price 
to the state taking into consideration the specifications, 
terms, and conditions agreed upon pursuant to negotiation.  
    Subd. 2.  [EQUIPMENT.] The commissioner may purchase, sell, 
repurchase or otherwise undertake the acquisition, rental or 
disposal of electronic data processing equipment as best serves 
the interests of the state, provided, however, the commissioner 
shall adhere to the competitive bidding requirements of chapter 
16.  
    Sec. 21.  [16B.16] [ENERGY EFFICIENCY INSTALLMENT 
PURCHASES.] 
     The commissioner shall contract to purchase by installment 
payments capital or other equipment or services intended to 
improve the energy efficiency of a state building or facility if:
    (1) the term of the contract does not exceed ten years;  
    (2) the entire cost of the contract is a percentage of the 
resultant savings in energy costs;  
    (3) the contract for purchase is competitive; and 
    (4) the state may unilaterally cancel the agreement if the 
legislature fails to appropriate funds to continue the contract. 
    The commissioner may spend money appropriated for energy 
costs in payment of a contract under this section.  
    Sec. 22.  [16B.17] [CONSULTANTS AND TECHNICAL SERVICES.] 
    Subdivision 1.  [TERMS.] For purposes of this section, the 
following terms have the meanings given them:  
    (a) [CONSULTANT SERVICES.] "Consultant services" means 
services which are intellectual in character; which do not 
involve the provision of supplies or materials; which include 
analysis, evaluation, prediction, planning, or recommendation; 
and which result in the production of a report.  
    (b) [PROFESSIONAL AND TECHNICAL SERVICES.] "Professional 
and technical services" means services which are predominantly 
intellectual in character; which do not involve the provision of 
supplies or materials; and in which the final result is the 
completion of a task rather than analysis, evaluation, 
prediction, planning, or recommendation.  
    Subd. 2.  [PROCEDURE FOR CONSULTANT AND PROFESSIONAL AND 
TECHNICAL SERVICES CONTRACTS.] Before approving a proposed state 
contract for consultant services or professional and technical 
services the commissioner must determine, at least, that:  
    (1) all provisions of section 24 and subdivision 3 of this 
section have been verified or complied with;  
    (2) the work to be performed under the contract is 
necessary to the agency's achievement of its statutory 
responsibilities, and there is statutory authority to enter into 
the contract;  
    (3) the contract will not establish an employment 
relationship between the state or the agency and any persons 
performing under the contract;  
    (4) no current state employees will engage in the 
performance of the contract;  
    (5) no state agency has previously performed or contracted 
for the performance of tasks which would be substantially 
duplicated under the proposed contract; and 
    (6) the contracting agency has specified a satisfactory 
method of evaluating and using the results of the work to be 
performed.  
    Subd. 3.  [DUTIES OF CONTRACTING AGENCY.] Before an agency 
may seek approval of a consultant or professional and technical 
services contract valued in excess of $2,000, it must certify to 
the commissioner that:  
    (1) no state employee is able to perform the services 
called for by the contract;  
    (2) the normal competitive bidding mechanisms will not 
provide for adequate performance of the services;  
    (3) the services are not available as a product of a prior 
consultant or professional and technical services contract, and 
the contractor has certified that the product of his services 
will be original in character;  
    (4) reasonable efforts were made to publicize the 
availability of the contract;  
    (5) the agency has received, reviewed, and accepted a 
detailed work plan from the contractor for performance under the 
contract; and 
    (6) the agency has developed, and fully intends to 
implement, a written plan providing for the assignment of 
specific agency personnel to a monitoring and liaison function; 
the periodic review of interim reports or other indications of 
past performance, and the ultimate utilization of the final 
product of the services.  
     Subd. 4.  [REPORTS.] After completion of performance under 
a consultant or professional and technical services contract, 
the agency shall evaluate the performance under the contract and 
the utility of the final product.  This evaluation must be 
delivered to the commissioner, who shall retain all the 
evaluations for future reference.  The commissioner shall submit 
to the governor and the legislature a monthly listing of all 
contracts for consultant services and for professional and 
technical services executed or disapproved in the preceding 
month.  The report must identify the parties and the contract 
amount, duration, and tasks to be performed.  The commissioner 
shall also issue quarterly reports summarizing the contract 
review activities of the department during the preceding quarter.
    Subd. 5.  [CONTRACT TERMS.] A consultant or technical and 
professional services contract must by its terms permit the 
agency to unilaterally terminate the contract prior to 
completion, upon payment of just compensation, if the agency 
determines that further performance under the contract would not 
serve agency purposes.  If the final product of the contract is 
to be a report, no more than three copies of the report, one in 
camera ready form, shall be submitted to the agency.  One of the 
copies must be filed with the legislative reference library.  
    Sec. 23.  [16B.18] [SHELTERED WORKSHOPS; PROCUREMENT OF 
PRODUCTS AND SERVICES; WORK ACTIVITY PROGRAMS.] 
    Subdivision 1.  [PRODUCT AND SERVICE LIST.] The 
commissioner in consultation with the commissioner of economic 
security shall prepare a list containing products and services 
of state certified sheltered workshops and work activity 
programs for procurement use by state agencies and institutions. 
The commissioner shall determine the fair market price for 
listed products and services.  In determining the fair market 
price the commissioner shall consider (1) open market bid prices 
in previous years for similar products and services, and (2) 
cost increases for both labor and materials.  The price paid may 
not exceed by more than five percent the fair market price. 
State agencies and institutions shall, after promulgation of the 
product and service list by the commissioner, procure listed 
products and services from sheltered workshops and work activity 
programs in preference to procurement from other suppliers or 
sources with the exceptions in this section.  The provisions of 
this chapter relating to competitive bidding do not apply to 
purchases made in accordance with this section.  
    Subd. 2.  [PRODUCTS AND SERVICES AVAILABLE ELSEWHERE.] When 
any listed products or services are available for procurement 
from any state agency or institution and procurement from the 
agency or institution is required by law, the procurement must 
be made in accordance with that law.  
    Subd. 3.  [RULES.] Rules under this section may provide a 
procedure by which the commissioner shall determine product 
specifications, quality standards, and timing of delivery to be 
complied with by the sheltered workshop and work activity 
program boards on purchases made under this section.  The list 
to be prepared pursuant to subdivision 1 shall not be 
promulgated as a rule.  
    Subd. 4.  [SELECTION OF NONPROFIT CORPORATION.] The 
commissioner may select a nonprofit corporation organized under 
chapter 317 to facilitate distribution of orders among sheltered 
workshops and work activity programs.  The corporation shall 
distribute orders so as to afford each sheltered workshop and 
work activity program an equal opportunity to obtain orders.  
    Sec. 24.  [16B.19] [PROCUREMENT FROM SMALL BUSINESSES.] 
    Subdivision 1.  [SMALL BUSINESS AND MINNESOTA CORRECTIONAL 
INDUSTRIES SET-ASIDES.] The commissioner shall for each fiscal 
year designate and set aside for awarding to small businesses 
and Minnesota correctional industries approximately 25 percent 
of the value of anticipated total state procurement of goods and 
services including printing and construction.  The commissioner 
shall divide the procurements so designated into contract award 
units of economically feasible production runs in order to 
facilitate offers or bids from small businesses and Minnesota 
correctional industries.  In making his annual designation of 
set-aside procurements the commissioner shall attempt (1) to 
vary the included procurements so that a variety of goods and 
services produced by different small businesses are set aside 
each year, and (2) to designate set-aside procurements in a 
manner that will encourage proportional distribution of 
set-aside awards among the geographical regions of the state. To 
promote the geographical distribution of set-aside awards, the 
commissioner may designate a portion of the small business 
set-aside procurement for award to bidders from a specified 
congressional district or other geographical region specified by 
the commissioner.  The failure of the commissioner to set aside 
particular procurements shall not be deemed to prohibit or 
discourage small businesses or Minnesota correctional industries 
from seeking the procurement award through the normal 
solicitation and bidding processes.  
    Subd. 2.  [CONSULTANT, PROFESSIONAL AND TECHNICAL 
PROCUREMENTS.] Every state agency shall for each fiscal year 
designate and set aside for awarding to small businesses with 
their principal place of business in Minnesota approximately 25 
percent of the value of anticipated procurements of that agency 
for consultant services or professional and technical services. 
The set-aside under this subdivision is in addition to that 
provided by subdivision 1, but shall otherwise comply with 
section 22 and the set-aside for businesses owned and operated 
by socially or economically disadvantaged persons.  
    Subd. 3.  [NEGOTIATED PRICE OR BID CONTRACT.] The 
commissioner may elect to use either a negotiated price or bid 
contract procedure in the awarding of a procurement contract 
under the set-aside program established in sections 24 to 27. 
The amount of an award may not exceed by more than five percent 
the commissioner's estimated price for the goods or services, if 
they were to be purchased on the open market and not under this 
set-aside program.  Surety bonds guaranteed by the federal Small 
Business Administration and second party bonds are acceptable 
security for a construction award under this section.  "Second 
party bond" means a bond which designates as principal, 
guarantor, or both, a person or persons in addition to the 
person to whom the contract is proposed for award.  
    Subd. 4.  [DETERMINATION OF ABILITY TO PERFORM.] Before 
announcing a set-aside award, the commissioner shall evaluate 
whether the small business or Minnesota correctional industry 
scheduled to receive the award is able to perform the set-aside 
contract.  This shall be done in consultation with an authorized 
agent of the Minnesota correctional industries program.  This 
determination shall include consideration of production and 
financial capacity and technical competence.  
    Subd. 5.  [PREFERENCE TO SMALL BUSINESSES.] At least 24 
percent of the value of the procurements designated for 
set-aside awards shall be awarded, if possible, to businesses 
owned and operated by socially or economically disadvantaged 
persons as defined in section 645.445.  The commissioner shall 
designate set-aside procurements in a manner that will encourage 
proportional distribution of set-aside awards among the 
geographical regions of the state.  To promote the geographical 
distribution of set-aside awards, the commissioner may designate 
a portion of the set-aside for small businesses owned and 
operated by socially or economically disadvantaged persons for 
award to bidders from a specified congressional district or 
other geographical region specified by the commissioner.  In the 
event small businesses owned and operated by socially or 
economically disadvantaged persons are unable to perform at 
least 24 percent of the set-aside awards, the commissioner shall 
award the balance of the set-aside contracts to other small 
businesses.  At least 50 percent of the value of the 
procurements awarded to businesses owned and operated by 
socially or economically disadvantaged persons shall actually be 
performed by the business to which the award is made or another 
business owned and operated by a socially or economically 
disadvantaged person or persons.  The commissioner may not 
designate more than 20 percent of any commodity class for 
set-aside to businesses owned and operated by socially or 
economically disadvantaged persons.  A business owned and 
operated by socially or economically disadvantaged persons that 
has been awarded more than five percent of the value of the 
total anticipated set-aside procurements for a fiscal year under 
this subdivision is disqualified from receiving further 
set-aside awards for that fiscal year.  
    Subd. 6.  [CONTRACTS IN EXCESS OF $200,000; SET-ASIDE.] The 
commissioner as a condition of awarding state procurements for 
construction contracts or approving contracts for consultant, 
professional, or technical services pursuant to section 22 in 
excess of $200,000 shall require that at least ten percent of 
the contract award to a prime contractor be subcontracted to a 
business owned and operated by a socially or economically 
disadvantaged person or persons.  Any subcontracting pursuant to 
this subdivision may not be included in determining the total 
amount of set-aside awards required by subdivisions 1, 1a, and 
4, or any preference program authorized by the commissioner 
pursuant to section 27.  In the event small businesses owned and 
operated by socially and economically disadvantaged persons are 
unable to perform ten percent of the prime contract award, the 
commissioner shall require that other small businesses perform 
at least ten percent of the prime contract award.  The 
commissioner may determine that small businesses owned and 
operated by socially and economically disadvantaged persons are 
unable to perform at least ten percent of the prime contract 
award prior to the advertising for bids.  Each construction 
contractor bidding on a project over $200,000 shall submit with 
the bid a list of the businesses owned and operated by socially 
or economically disadvantaged persons that are proposed to be 
utilized on the project with a statement indicating the portion 
of the total bid to be performed by each business.  The 
commissioner shall reject any bid to which this subdivision 
applies that does not contain this information.  Prime 
contractors receiving construction contract awards in excess of 
$200,000 shall furnish to the commissioner the name of each 
business owned and operated by a socially or economically 
disadvantaged person or persons or other small business that is 
performing work on the prime contract and the dollar amount of 
the work performed.  
    Subd. 7.  [PREFERENCE TO MINNESOTA CORRECTIONAL 
INDUSTRIES.] At least 15 percent of the value of procurements 
designated for set-aside awards shall be awarded, if possible, 
to Minnesota correctional industries, established and under the 
control of the commissioner of corrections under section 241.27, 
for the variety of goods and services produced by the Minnesota 
correctional industries, unless the commissioner of corrections 
acting through an authorized agent certifies that Minnesota 
correctional industries cannot provide them.  If the 
correctional industries are unable to perform at least 15 
percent of the set-aside awards, the commissioner shall award 
the balance of the set-aside contracts to small businesses.  
    Subd. 8.  [RECOURSE TO OTHER BUSINESSES.] In the event that 
subdivisions 1 to 4b do not operate to extend a contract award 
to a small business or the Minnesota correctional industries, 
the award must be placed pursuant to the normal solicitation and 
award provisions in this chapter.  The commissioner shall then 
designate and set aside for small businesses or the Minnesota 
correctional industries additional state procurements 
corresponding in approximate value to the contract unable to be 
awarded pursuant to subdivisions 1 to 4b.  
    Subd. 9.  [PROCUREMENT PROCEDURES.] All laws and rules 
pertaining to solicitations, bid evaluations, contract awards, 
and other procurement matters apply equally to procurements set 
aside for small businesses or Minnesota correctional 
industries.  In the event of conflict with other rules, sections 
24 to 27 and rules adopted under those sections govern.  
    Sec. 25.  [16B.20] [ENCOURAGEMENT OF PARTICIPATION; 
ADVISORY COUNCIL.] 
    Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] The 
commissioners of administration and energy and economic 
development shall publicize the provisions of the set-aside 
program, attempt to locate small businesses able to perform 
set-aside procurement awards, and encourage participation.  When 
the commissioner of administration determines that a small 
business is unable to perform under a set-aside contract, the 
commissioner shall inform the commissioner of energy and 
economic development who shall assist the small business in 
attempting to remedy the causes of the inability to perform a 
set-aside award.  In assisting the small business, the 
commissioner of energy and economic development in cooperation 
with the commissioner of administration shall use management or 
financial assistance programs made available by or through the 
department of energy and economic development, other state or 
governmental agencies, or private sources.  
    Subd. 2.  [ADVISORY COUNCIL.] A small business procurement 
advisory council is created.  The council consists of 13 members 
appointed by the governor.  A chairperson 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 and removal of members are as 
provided in section 15.059, but members do not receive per diem 
or expenses.  
    Subd. 3.  [DUTIES.] The small business procurement advisory 
council shall:  
    (1) advise the commissioner of administration on matters 
relating to the small business procurement program;  
    (2) review complaints or grievances from small business 
vendors or contractors who are doing or attempting to do 
business under the program; and 
    (3) review the reports of the commissioners of 
administration and energy and economic development provided by 
section 26 to ensure compliance with the goals of the program.  
    Sec. 26.  [16B.21] [REPORTS.] 
    Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] The 
commissioner shall submit an annual report pursuant to section 
3.195 to the governor and the legislature with a copy to the 
commissioner of energy and economic development indicating the 
progress being made toward the objectives and goals of sections 
24 to 27 during the preceding fiscal year.  The commissioner 
shall also submit a quarterly report to the small business 
procurement advisory council.  These reports shall include the 
following information:  
    (1) the total dollar value and number of potential 
set-aside awards identified during this period and the 
percentage of total state procurement this figure reflects;  
    (2) the number of small businesses identified by and 
responding to the set-aside program, the total dollar value and 
number of set-aside contracts actually awarded to small 
businesses with appropriate designation as to the total number 
and value of set-aside contracts awarded to each small business, 
and the total number of small businesses that were awarded 
set-aside contracts;  
    (3) the total dollar value and number of set-aside 
contracts awarded to small businesses owned and operated by 
economically or socially disadvantaged persons with appropriate 
designation as to the total number and value of set-aside 
contracts awarded to each small business and to each category of 
economically or socially disadvantaged persons as defined by 
section 645.445 and agency rules, and the percentages of the 
total state procurements the figures of total dollar value and 
the number of set-asides reflect; and 
    (4) the number of contracts which were designated and set 
aside pursuant to section 24 but which were not awarded to a 
small business, the estimated total dollar value of these 
awards, the lowest offer or bid on each of these awards made by 
the small business, and the price at which these contracts were 
awarded pursuant to the normal procurement procedures.  
    The information required by paragraphs (1) and (2) must be 
presented on a statewide basis and also broken down by 
geographic regions within the state.  
    Subd. 2.  [COMMISSIONER OF ENERGY AND ECONOMIC 
DEVELOPMENT.] The commissioner of energy and economic 
development shall submit an annual report to the governor and 
the legislature pursuant to section 3.195 with a copy to the 
commissioner of administration.  This report shall include the 
following information:  
    (1) the efforts undertaken to publicize the provisions of 
the set-aside program during the preceding fiscal year;  
    (2) the efforts undertaken to identify small businesses 
including those owned and operated by socially or economically 
disadvantaged persons, and the efforts undertaken to encourage 
participation in the set-aside program;  
    (3) the efforts undertaken by the commissioner to remedy 
the inability of small businesses to perform on potential 
set-aside awards; and 
    (4) the commissioner's recommendations for strengthening 
the set-aside program and delivery of services to small 
businesses.  
    Sec. 27.  [16B.22] [RULES.] 
    The commissioner shall adopt by rule standards and 
procedures for certifying that small businesses and small 
businesses owned and operated by socially or economically 
disadvantaged persons are eligible to participate under the 
requirements of sections 24 to 27.  The rules shall provide that 
certification as a small business owned and operated by socially 
or economically disadvantaged persons will be for a maximum of 
five years from the date of receipt of the first set-aside 
award, and that after the expiration of the certification period 
the business may not again be certified for a five-year period. 
The commissioner shall adopt by rule standards and procedures 
for hearing appeals and grievances and other rules necessary to 
carry out the duties set forth in sections 24 to 27.  
    The commissioner may make rules which exclude or limit the 
participation of nonmanufacturing business, including 
third-party lessors, jobbers, manufacturers' representatives, 
and others from eligibility under sections 24 to 27.  
    The commissioner may adopt rules to establish a preference 
program whereby businesses owned and operated by socially and 
economically disadvantaged persons would be allowed a five 
percent preference in the bid amount on selected state 
procurements or a preference program whereby businesses owned 
and operated by socially and economically disadvantaged persons 
would be awarded any state procurement if the business could 
meet the low bid amount for that procurement.  Each of the 
preference programs is applicable to no more than 1.5 percent of 
the value of anticipated total state procurements of goods and 
services, including construction.  Each preference program 
established by the commissioner expires on June 30, 1986, and 
the commissioner shall report to the legislature on the progress 
of the program by January 1, 1986.  
    Sec. 28.  [16B.23] [DISTRICT HEATING.] 
    Notwithstanding any other law, general or special, the 
commissioner of administration is authorized to enter into or 
approve a written agreement not to exceed 31 years with a 
district heating utility that will specify, but not be limited 
to, the appropriate terms and conditions for the interchange of 
district heating services.  

                      MANAGEMENT OF STATE PROPERTY 
    Sec. 29.  [16B.24] [GENERAL AUTHORITY.] 
    Subdivision 1.  [OPERATION AND MAINTENANCE OF BUILDINGS.] 
The commissioner is authorized to maintain and operate the state 
capitol building and grounds, subject to whatever standards and 
policies are set for its appearance and cleanliness by the 
capitol area architectural and planning board and the 
commissioner pursuant to section 15.50, subdivision 2, clause 
(h), and the state office building, the historical society 
building, the Normandale, Anoka-Ramsey, North Hennepin, 
Lakewood, Metropolitan, and South East Metropolitan Community 
Colleges, the employment services buildings in Minneapolis and 
St. Paul, the state department of health building, and the 
surplus property building, and their grounds, and, when the 
commissioner considers it advisable and practicable, any other 
building or premises owned or rented by the state for the use of 
a state agency.  The commissioner shall assign and reassign 
office space in the capitol and state buildings to make an 
equitable division of available space among agencies.  The power 
granted in this subdivision does not apply to state hospitals or 
to educational, penal, correctional, or other institutions not 
enumerated in this subdivision the control of which is vested by 
law in some other agency.  
    Subd. 2.  [REPAIRS.] The commissioner shall supervise and 
control the making of necessary repairs to all state buildings 
and structures, except structures, other than buildings, under 
the control of the state transportation department; provided 
that all repairs to the public and ceremonial areas and the 
exterior of the state capitol building shall be carried out 
subject to the standards and policies of the capitol area 
architectural and planning board and the commissioner of 
administration adopted pursuant to section 15.50, subdivision 2, 
clause (h).  
    Subd. 3.  [DISPOSAL OF OLD BUILDINGS.] The commissioner, 
upon request of the head of an agency which has control of a 
state owned building which is no longer used or which is a fire 
or safety hazard, shall, after obtaining approval of the 
chairmen of the senate finance committee and house of 
representatives appropriations committee, sell, wreck, or 
otherwise dispose of the building.  In the event a sale is made 
the proceeds shall be deposited in the proper account or in the 
general fund.  
    Subd. 4.  [INSPECTIONS; APPRAISALS; INVENTORIES.] The 
commissioner shall provide for the periodic inspection and 
appraisal of all state property, real and personal, and for 
current and perpetual inventories of all state property.  The 
commissioner shall require agencies to make reports of the real 
and personal property in their custody at the intervals and in 
the form the commissioner considers necessary.  
    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 two years at a time without the 
approval of the state executive council, and may never be rented 
out for more than 25 years.  
    (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, and the building at 1246 
University Avenue, St. Paul, Minnesota, to state agencies 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 cost of a 
building built with 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 fund.  
    Subd. 6.  [PROPERTY RENTAL.] (a) [LEASES.] The commissioner 
shall rent land and other premises when necessary for state 
purposes.  The commissioner may lease land or premises for five 
years or less, subject to cancellation upon 30 days written 
notice by the state for any reason except rental of other land 
or premises for the same use.  The commissioner may not rent 
non-state-owned land and buildings or substantial portions of 
land or buildings within the capitol area as defined in section 
15.50 unless the commissioner first consults with the capitol 
area architectural and planning board.  Lands needed by the 
department of transportation for storage of vehicles or road 
materials may be rented for five years or less, such leases for 
terms over two years being subject to cancellation upon 30 days 
written notice by the state for any reason except rental of 
other land or premises for the same use.  
    (b) [USE VACANT PUBLIC SPACE.] No agency may initiate or 
renew a lease for space for its own use in a private building 
unless the commissioner has thoroughly investigated presently 
vacant space in public buildings, such as closed school 
buildings, and found that none is available.  
    (c) [PREFERENCE FOR CERTAIN BUILDINGS.] For needs beyond 
those which can be accommodated in state owned buildings, the 
commissioner shall acquire and utilize space in suitable 
buildings of historical, architectural, or cultural significance 
for the purposes of this subdivision unless use of that space is 
not feasible, prudent and cost effective compared with available 
alternatives.  Buildings are of historical, architectural, or 
cultural significance if they are listed on the national 
register of historic places, designated by a state or county 
historical society, or designated by a municipal preservation 
commission.  
    Subd. 7.  [POWER, HEATING, AND LIGHTING PLANTS.] The 
commissioner shall inspect all state power, heating, and 
lighting plants, make rules governing their operation, and 
recommend improvements in the plants which will promote their 
economical and efficient operation.  
    Subd. 8.  [REGIONAL SERVICE CENTER.] The commissioner may 
establish a regional service center on a demonstration basis. 
The commissioner shall select agencies to participate in the 
demonstration service center and determine equitable methods of 
sharing space, personnel and equipment.  The commissioner may 
enter into a lease for a base term of five years with a five 
year leasehold renewal option to acquire suitable space for the 
service center.  
    Sec. 30.  [16B.25] [LOST PROPERTY ON STATE LANDS.] 
    Subdivision 1.  [PERMITS.] The commissioner may grant a 
permit to search upon lands, highways, or in buildings owned by 
the state for lost or abandoned property.  Conditions of a 
permit may include a formula for dividing between the state and 
the finder the proceeds of any property found and unclaimed.  
    Subd. 2.  [NOTICE.] Lost or abandoned property found on 
state lands is placed in the custody of the commissioner.  If 
the rightful owner is known, the owner must be notified by 
certified mail and may reclaim the property on paying the 
expenses of the search.  If the owner is unknown, the 
commissioner must give two weeks' published notice in the county 
where the property was found.  Within six months following 
publication, the rightful owner may receive the property on 
paying the search expenses.  
    Subd. 3.  [DISPOSAL.] Unclaimed property may be sold at 
public sale, disposed of as state surplus property, or 
destroyed, based on the commissioner's judgment of its value.  
    Subd. 4.  [MONEY.] All lost or abandoned money found under 
a permit granted pursuant to this section, and the proceeds from 
the sale of other abandoned or lost property found under a 
permit, must be deposited in the general fund.  
    Sec. 31.  [16B.26] [UTILITY COMPANIES, PERMITS TO CROSS 
STATE-OWNED LANDS.] 
    Subdivision 1.  [EASEMENTS.] (a) [AUTHORITY.] Except where 
the authority conferred by this section has been imposed on some 
other state or county office, the commissioner may grant an 
easement or permit over, under, or across any land owned by the 
state for the purpose of constructing roads, streets, telephone, 
telegraph, and electric power lines, cables or conduits, 
underground or otherwise, or mains or pipe lines for gas, 
liquids, or solids in suspension.  This authority does not apply 
to land under the jurisdiction of the commissioner of natural 
resources or land obtained for trunk highway purposes.  
    (b) [NOTICE OF REVOCATION.] An easement or permit is 
revocable by written notice given by the commissioner if at any 
time its continuance will conflict with a public use of the land 
over, under, or upon which it is granted, or for any other 
reason.  The notice must be in writing and is effective 90 days 
after the notice is sent by certified mail to the last known 
address of the record holder of the easement.  If the address of 
the holder of the easement or permit is not known, it expires 90 
days after the notice is recorded in the office of the county 
recorder of the county in which the land is located.  Upon 
revocation of an easement, the commissioner may allow a 
reasonable time to vacate the premises affected.  
    (c) [EASEMENT RUNS WITH LAND.] State land subject to an 
easement or permit granted by the commissioner remains subject 
to sale or lease, and the sale or lease does not revoke the 
permit or easement granted.  
    Subd. 2.  [LAND CONTROLLED BY OTHER AGENCIES.] If the 
easement or permit involves land under the jurisdiction of an 
agency other than the department of administration, it is 
subject to the approval of the head of the agency and is subject 
to revocation by the commissioner as provided in this section, 
on request of the head of the agency.  
    Subd. 3.  [APPLICATION.] An application for easement or 
permit under this section must be in quadruplicate and must 
include:  a legal description of the land affected; a map 
showing the area affected by the easement or permit; and a 
detailed design of any structures to be placed on the land.  The 
commissioner may require that the application be in another form 
and include other descriptions, maps, or designs.  The 
commissioner may at any time order changes or modifications 
respecting construction or maintenance of structures or other 
conditions of the easement which the commissioner finds 
necessary to protect the public health and safety.  
    Subd. 4.  [FORM; DURATION.] The easement or permit must be 
in a form prescribed by the attorney general and must describe 
the location of the easement granted.  The easement or permit 
continues until revoked by the commissioner, subject to change 
or modification as provided in this section.  
    Subd. 5.  [CONSIDERATION; TERMS.] The commissioner may 
prescribe consideration and conditions for granting an easement 
or permit.  Money received by the state under this section must 
be credited to the fund to which income or proceeds of sale from 
the land would be credited, if provision for the sale is made by 
law.  Otherwise, it must be credited to the general fund.  
    Sec. 32.  [16B.27] [GOVERNOR'S RESIDENCE.] 
    Subdivision 1.  [USE.] The governor's residence must be 
used for official ceremonial functions of the state, and to 
provide suitable living quarters for the governor of the state.  
    Subd. 2.  [MAINTENANCE.] The commissioner shall maintain 
the governor's residence in the same way as other state 
buildings are maintained and shall rehabilitate, decorate, and 
furnish the building.  The decoration and furnishing shall be 
guided by the governor's residence council.  
    Subd. 3.  [COUNCIL.] The governor's residence council 
consists of the following 15 members:  the commissioner; the 
spouse, or a designee of the governor; the executive director of 
the Minnesota state arts board; the director of the Minnesota 
historical society; a member of the senate appointed pursuant to 
the rules of the senate; a member of the house of 
representatives appointed pursuant to the rules of the house of 
representatives; seven persons appointed by the governor 
including one in the field of higher education, one member of 
the American Society of Interior Designers, Minnesota Chapter, 
one member of the American Institute of Architects, Minnesota 
chapter, one member of the American Society of Landscape 
Architects, Minnesota Chapter, one member of the family that 
donated the governor's residence to the state, if available, and 
four public members.  Members of the council serve without 
compensation.  Membership terms, removal, and filling of 
vacancies for members appointed by the governor are governed by 
section 15.0575.  The council shall elect a chairman and a 
secretary from among its members.  The council shall expire on 
the date provided by section 15.059, subdivision 5.  
    Subd. 4.  [DUTIES.] The council shall develop an overall 
restoration plan for the governor's residence and surrounding 
grounds and approve alterations in the existing structure.  
    Subd. 5.  [GIFTS.] (a) To maintain and improve the quality 
of furnishings for the public areas of the building, the council 
may solicit and accept donated money, furnishings, objects of 
art and other items the council determines may have historical 
value in keeping with the building's period and purpose.  The 
gift acceptance procedures of sections 7.09 to 7.12 do not apply 
to this subdivision.  
    (b) Notwithstanding sections 7.09 to 7.12, the council may 
solicit contributions for the renovation of and capital 
improvements to the governor's residence.  
    (c) Gifts for the benefit of the governor's residence and 
surrounding grounds are not accepted by the state unless 
accepted by the council.  The council shall maintain a complete 
inventory of all gifts and articles received.  
    Sec. 33.  [16B.28] [SURPLUS FEDERAL PROPERTY.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this section 
the following terms have the meanings given them:  
    (a) "Surplus property" means commodities, equipment, 
materials, supplies, books, printed matter, and other property 
made available by the federal government to a governmental or 
nonprofit organization.  
    (b) "Governmental or nonprofit organization" means the 
state of Minnesota, its departments, agencies, political 
subdivisions, and other instrumentalities, and any nonprofit and 
tax-exempt medical institution, hospital, clinic, health center, 
school, school system, college, university, or other institution 
organized and existing for any purpose authorized by federal law 
to accept surplus property.  
    Subd. 2.  [AUTHORIZATION.] The commissioner is the state 
agency designated to purchase or accept surplus property for the 
state and for the benefit of any other governmental or nonprofit 
organization for any purpose authorized by federal law and in 
accordance with federal rules and regulations.  Any governmental 
or nonprofit organization may designate the commissioner to 
purchase or accept surplus property for it upon mutually 
agreeable terms and conditions.  The commissioner may store 
surplus property until it is needed and any expenses incurred in 
connection with the storage shall be paid from the surplus 
property revolving fund.  
    Subd. 3.  [REVOLVING FUND.] (a) [CREATION.] To pay for 
surplus property received from the federal government for 
governmental or nonprofit organizations, including the expense 
of accepting and distributing that property, there is a surplus 
property revolving fund in the state treasury.  Money paid into 
the surplus property revolving fund is appropriated to the 
commissioner for the purposes of this section.  
    (b) [ADVANCES.] No more than $1,000 from the surplus 
property revolving fund may be advanced to the commissioner or a 
state employee engaged in performing duties under this section 
to pay the expenses of travel, subsistence, toll charges, and 
similar expenses, in accordance with requirements prescribed by 
the commissioner of finance.  When money which was advanced is 
repaid, it must be deposited in the state treasury to the credit 
of the surplus property revolving fund.  
    (c) [TRANSFER TO STATE AGENCY.] When the state or an agency 
operating under a legislative appropriation obtains surplus 
property from the commissioner, the commissioner of finance 
must, at the commissioner's request, transfer the cost of the 
property, including any expenses of accepting and distributing 
the property, from the appropriation of the state agency 
receiving the surplus property to the surplus property revolving 
fund.  The determination of the commissioner is final as to the 
cost of the surplus property to the state agency receiving the 
property.  
    (d) [TRANSFER TO OTHER AGENCIES.] When any governmental or 
nonprofit organization other than a state agency receives 
surplus property from the commissioner, the governmental or 
nonprofit organization must reimburse the surplus property 
revolving fund for the cost of the property, including the 
expenses of accepting and distributing it, in an amount the 
commissioner sets.  The commissioner may, however, require the 
governmental or nonprofit organization to deposit in advance in 
the surplus property revolving fund the cost of the surplus 
property upon mutually agreeable terms and conditions.  
    Sec. 34.  [16B.29] [STATE SURPLUS PROPERTY; DISPOSAL.] 
    The commissioner may do any of the following to dispose of 
supplies, materials, and equipment which are surplus, obsolete, 
or unused:  (1) transfer it to or between state agencies; (2) 
transfer it to local government units in Minnesota; or (3) sell 
it.  The commissioner must make proper adjustments in the 
accounts and appropriations of the agencies concerned.  When the 
commissioner sells the supplies, materials and equipment, the 
proceeds of the sale are appropriated to the agency for whose 
account the sale was made, to be used and expended by the agency 
to purchase similar needed supplies, materials and equipment at 
any time during the biennium in which the sale occurred.  

                          CAPITAL IMPROVEMENTS 
    Sec. 35.  [16B.30] [GENERAL AUTHORITY.] 
    Subject to other provisions in this chapter, the 
commissioner shall supervise and control the making of all 
contracts for the construction of buildings and for other 
capital improvements to state buildings and structures.  
    Sec. 36.  [16B.31] [COMMISSIONER MUST APPROVE PLANS.] 
    Subdivision 1. [CONSTRUCTION PLANS AND SPECIFICATIONS.] The 
commissioner shall (1) have plans and specifications prepared 
for the construction, alteration, or enlargement of all state 
buildings, structures, and other improvements except highways 
and bridges; (2) approve those plans and specifications; (3) 
advertise for bids and award all contracts in connection with 
the improvements; (4) supervise and inspect all work relating to 
the improvements; (5) approve all lawful changes in plans and 
specifications after the contract for an improvement is let; and 
(6) approve estimates for payment.  This subdivision does not 
apply to the construction of the zoological gardens.  
    Subd. 2.  [APPROPRIATIONS.] Plans must be paid for out of 
money appropriated for the purpose of improving or constructing 
the building.  No part of the balance may be expended until the 
commissioner has secured suitable plans and specifications, 
prepared by a competent architect or engineer, and accompanied 
by a detailed statement of the cost, quality, and description of 
all material and labor required for the completion of the work. 
No plan may be adopted, and no improvement made or building 
constructed, that contemplates the expenditure for its 
completion of more money than the appropriation for it, unless 
otherwise provided in this section or the act making the 
appropriation.  The commissioner may not direct or permit any 
expenditure beyond that appropriated, and any agent of the 
commissioner violating this provision is guilty of a gross 
misdemeanor.  
    Subd. 3.  [FEDERAL AID.] (a) [ACCEPTANCE OF AID.] The 
commissioner is the state agency empowered to accept money 
provided for or made available to this state by the United 
States of America or any federal department or agency for the 
construction and equipping of any building for state purposes 
not otherwise provided for by law, other than University of 
Minnesota buildings, in accordance with the provisions of 
federal law and any rules or regulations promulgated under 
federal law.  The commissioner may do whatever is required of 
this state by federal law, rules, and regulations in order to 
obtain the federal money.  
    (b) [FEDERAL FUNDS CONSIDERED PART OF APPROPRIATION.] The 
commissioner may after consultation with the chairmen of the 
senate finance committee and house of representatives 
appropriations committee, adopt a plan, provide for an 
improvement, or construct a building that contemplates 
expenditure for its completion of more money than the 
appropriation for it, if the excess money is provided by the 
United States government and granted to the state of Minnesota 
under federal law or any rule or regulation promulgated under 
federal law.  This federal money, for the purpose of this 
section, is a part of the appropriation for the project.  
    (c) [DELAYED FEDERAL MONEY.] If an amount is payable to a 
creditor of the state from a project account which is financed 
partly with federal money and the project is included in 
appropriations made to the commissioner for public buildings and 
equipment, and the amount cannot be paid on time because of a 
deficiency of money in the project account caused by a delay in 
the receipt of federal money, the commissioner may provide money 
needed to pay the amount by temporarily transferring the sum to 
the project account from any other appropriation made to the 
commissioner in the same act.  Required money for a payment is 
appropriated for that purpose.  When the delayed federal money 
is received, the commissioner shall have the amount of money 
transferred returned to the account from which it came.  
    Subd. 4.  [CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD.] 
(a) [COMPREHENSIVE USE PLAN; COMPETITIONS.] Notwithstanding any 
provision of this section to the contrary, plans for proposed 
new buildings and for features of existing public buildings in 
the capitol area which the capitol area architectural and 
planning board consider to possess architectural significance 
are subject to section 15.50, subdivision 2, clauses (c) and (e).
    (b) [APPROVAL REQUIRED.] The preparation of plans and 
specifications for the capitol area, as defined in section 
15.50, may not be initiated, contracted for, or conducted 
without consultation with the capitol area architectural and 
planning board to the extent the plans and specifications 
involve the public and ceremonial areas and the exterior of the 
capitol building and the lobbies, public concourses, and other 
features of other public buildings in the capitol area which the 
capitol area architectural and planning board considers to have 
architectural significance.  The commissioner may not approve or 
adopt plans or specifications for the capitol area unless they 
have been approved by the capitol area architectural and 
planning board.  The capitol area architectural and planning 
board must also be advised of and approve changes in plans and 
specifications which affect projects within the capitol area.  
    Sec. 37.  [16B.32] [ALTERNATIVE ENERGY SOURCES.] 
   Plans prepared by the commissioner for a new building or 
for a renovation of 50 percent or more of an existing building 
or its energy systems must include designs which use active and 
passive solar energy systems, earth sheltered construction, and 
other alternative energy sources where feasible.  
    Sec. 38.  [16B.33] [DESIGNER SELECTION BOARD.] 
    Subdivision 1.  [DEFINITIONS.] As used in this section, the 
following terms have the meanings given them:  
    (a) "Agency" has the meaning given in section 6, and also 
includes the University of Minnesota.  
    (b) "Architect" means an architect or landscape architect 
registered to practice under sections 326.02 to 326.15.  
    (c) "Board" means the state designer selection board.  
    (d) "Designer" means an architect or engineer, or a 
partnership, association, or corporation comprised primarily of 
architects or engineers or of both architects and engineers.  
    (e) "Engineer" means an engineer registered to practice 
under sections 326.02 to 326.15.  
    (f) "Person" includes an individual, corporation, 
partnership, association, or any other legal entity.  
    (g) "Primary designer" means the designer who is to have 
primary design responsibility for a project, and does not 
include designers who are merely consulted by the user agency 
and do not have substantial design responsibility, or designers 
who will or may be employed or consulted by the primary designer.
    (h) "Project" means an undertaking to construct, erect, or 
remodel a building by or for the state or an agency.  
    (i) "User agency" means the agency undertaking a specific 
project.  
    Subd. 2.  [ORGANIZATION OF BOARD.] (a) [MEMBERSHIP.] The 
state designer selection board consists of five individuals, the 
majority of whom must be Minnesota residents.  Each of the 
following three organizations shall nominate one individual 
whose name and qualifications shall be submitted to the governor 
for consideration:  the consulting engineers council of 
Minnesota after consultation with other professional engineering 
societies in the state; the Minnesota society of architects; and 
the Minnesota board of the arts.  The governor may appoint the 
three named individuals to the board with the advice and consent 
of the senate, but the governor may reject a nominated 
individual and request another nomination.  The remaining two 
members shall also be appointed by the governor with the advice 
and consent of the senate.  
    (b) [NON-VOTING MEMBERS.] In addition to the five members 
of the board, two non-voting members shall participate in the 
interviewing and selection of designers pursuant to this 
section.  One shall be a representative of the commissioner and 
shall participate in the interviewing and selection of designers 
for all projects.  The other shall be a representative of the 
user agency, who shall participate in the interviewing and 
selection of the designers for the project being undertaken by 
the user agency.  The commissioner shall appoint the 
representative of the user agency in consultation with the user 
agency.  
    (c) [TERMS; COMPENSATION; REMOVAL; VACANCIES.] The 
membership terms, compensation, removal of members, and filling 
of vacancies on the board are as provided in section 15.0575. No 
individual may serve for more than two consecutive terms.  
    (d) [OFFICERS, RULES.] At its first meeting, the board 
shall elect a voting member of the board as chairman.  The board 
shall also elect other officers necessary for the conduct of its 
affairs.  The board shall adopt rules governing its operations 
and the conduct of its meetings.  The rules shall provide for 
the terms of the chairman and other officers.  
    (e) [MEETINGS.] The board shall meet as often as is 
necessary, not less than twice annually, in order to act 
expeditiously on requests submitted to it for selection of 
primary designers.  
    (f) [OFFICE, STAFF, RECORDS.] The department of 
administration shall provide the board with suitable quarters to 
maintain an office, hold meetings, and keep records.  The 
commissioner shall designate an employee of the department of 
administration to serve as executive secretary to the board and 
shall furnish a secretarial staff to the board as necessary for 
the expeditious conduct of the board's duties and 
responsibilities.  
    Subd. 3.  [AGENCIES MUST REQUEST DESIGNER.] (a) 
[APPLICATION.] Upon undertaking a project with an estimated cost 
greater than $400,000 or a planning project with estimated fees 
greater than $35,000, every user agency, except the capitol area 
architectural and planning board, shall submit a written request 
for a primary designer for its project to the commissioner, who 
shall forward the request to the board.  The written request 
must include a description of the project, the estimated cost of 
completing the project, a description of any special 
requirements or unique features of the proposed project, and 
other information which will assist the board in carrying out 
its duties and responsibilities set forth in this section.  
    (b) [REACTIVATED PROJECT.] If a project for which a 
designer has been selected by the board becomes inactive, 
lapses, or changes as a result of project phasing, insufficient 
appropriations, or other reasons, the commissioner or the 
University of Minnesota may, if the project is reactivated, 
retain the same designer to complete the project.  
    (c) [FEE LIMIT REACHED AFTER DESIGNER SELECTED.] If a 
project initially estimated to be below the cost and planning 
fee limits of this subdivision has its cost or planning fees 
revised so that the limits are exceeded, the project must be 
referred to the board for designer selection even if a primary 
designer has already been selected.  In this event, the board 
may, without conducting interviews, elect to retain the 
previously selected designer if it determines that the interests 
of the state are best served by that decision and shall notify 
the commissioner of its determination.  
    Subd. 4.  [DESIGNER SELECTION PROCESS.] (a) [PUBLICITY.] 
Upon receipt of a request from a user agency for a primary 
designer, the board shall publicize the proposed project in 
order to determine the identity of designers interested in the 
design work on the project.  The board shall establish criteria 
for the selection process and make this information public, and 
shall compile data on and conduct interviews of designers.  The 
board's selection criteria must include consideration of each 
interested designer's performance on previous projects for the 
state or any other person.  Upon completing the process, the 
board shall select the primary designer and shall state its 
reasons in writing.  Notification to the commissioner of the 
selection shall be made not more than 60 days after receipt from 
a user agency of a request for a primary designer.  The 
commissioner shall promptly notify the designer and the user 
agency.  The commissioner shall negotiate the designer's fee and 
prepare the contract to be entered into between the designer and 
the user agency.  
    (b) [CONFLICT OF INTEREST.] The board may not select a 
designer or firm in which a member of the designer selection 
board has a current financial interest.  
    (c) [SELECTION BY COMMISSIONER.] In the event the board 
receives a request for a primary designer on a project, the 
estimated cost of which is less than the limit established by 
subdivision 3, or a planning project with estimated fees of less 
than the limit established by subdivision 3, the board may 
submit the request to the commissioner of administration, with 
or without recommendations, and the commissioner shall thereupon 
select the primary designer for the project.  
    (d) [SECOND SELECTION.] If the designer selected for a 
project declines the appointment or is unable to reach agreement 
with the commissioner on the fee or the terms of the contract, 
the commissioner shall, within 60 days after the first 
appointment, request the board to make another selection.  
    (e) [SIXTY DAYS TO SELECT.] If the board fails to make a 
selection and forward its recommendation to the commissioner 
within 60 days of the user agency's request for a designer, the 
commissioner may appoint a designer to the project without the 
recommendation of the board.  
    (f) [LESS THAN SATISFACTORY PERFORMANCE.] The commissioner, 
or the University of Minnesota for projects under its 
supervision, shall forward to the board a written report 
describing each instance in which the performance of a designer 
selected by the board or the commissioner has been less than 
satisfactory.  Criteria for determining satisfaction include the 
ability of the designer to complete design work on time, to 
provide a design responsive to program needs within the 
constraints of the budget, to solve design problems and achieve 
a design consistent with the proposed function of the building, 
to avoid costly design errors or omissions, and to observe the 
construction work.  These reports are public data and are 
available for inspection under section 13.03.  
    Sec. 39.  [16B.34] [INMATE LABOR.] 
    At a state institution or state park or in the maintenance 
of a state armory, an appropriation for construction, 
improvements, or maintenance may be expended through the use of 
inmate or project labor when authorized by the commissioner with 
the concurrence of the head of the interested state department.  
    Sec. 40.  [16B.35] [ART IN STATE BUILDINGS.] 
    Subdivision 1.  [PERCENT OF APPROPRIATIONS FOR ART.] An 
appropriation for the construction or alteration of any state 
building may contain an amount not to exceed one percent of the 
total appropriation for the building for the acquisition of 
works of art, excluding landscaping, which may be an integral 
part of the building or its grounds, attached to the building or 
grounds or capable of being displayed in other state buildings. 
Money used for this purpose is available only for the 
acquisition of works of art to be exhibited in areas of a 
building or its grounds accessible, on a regular basis, to 
members of the public.  For the purposes of this section "state 
building" means a building the construction or alteration of 
which is paid for wholly or in part by the state.  
    Subd. 2.  [EXEMPT BULDINGS.] A building for which the 
appropriation is less than $500,000 for construction or 
alteration or a building for which the commissioner of 
administration has determined that this section is inappropriate 
is exempt from the requirements of this section.  
    Subd. 3.  [UNUSED FUNDS.] If an amount made available under 
subdivision 1 is not expended for works of art for the building, 
the unexpended portion is available to the Minnesota board of 
the arts for the commission or purchase of works of art for 
state buildings existing or for which an appropriation was made 
prior to June 15, 1983, and is not available to pay construction 
costs of the building.  

                       SERVICES TO STATE AGENCIES 
    Sec. 41.  [16B.36] [INVESTIGATIONS.] 
    Subdivision 1.  [AUTHORITY.] The commissioner may examine, 
investigate, or make a survey of the organization, 
administration, and management of state agencies and 
institutions under their control, to secure greater efficiency 
and economy through reorganization or consolidation of agencies 
or functions and to eliminate duplication of function, effort, 
or activity, so far as possible.  
    Subd. 2.  [HEARINGS.] The commissioner shall recommend to 
the legislature any necessary changes in the laws of the state 
as a result of a survey or investigation, or otherwise, in order 
to secure a better organization of the state government or 
greater efficiency and economy in administration.  For this 
purpose, the commissioner may hold hearings, and issue subpoenas 
for and compel the attendance of witnesses, the giving of 
testimony, and the production of books, records, accounts, 
documents, and papers, as provided in section 15.08.  
    Sec. 42.  [16B.37] [REORGANIZATION OF AGENCIES.] 
    Subdivision 1.  [COMMISSIONER'S AUTHORITY.] To improve 
efficiency and avoid duplication, the commissioner may transfer 
personnel, powers, or duties, or any combination of them, from a 
state agency to another state agency that has been in existence 
for at least one year prior to the date of transfer.  A transfer 
must have received the prior approval of the governor.  The 
commissioner shall no later than January 15 of each year submit 
to the legislature a bill making all statutory changes required 
by reorganization orders issued by the commissioner during the 
preceding calendar year.  
    Subd. 2.  [REORGANIZATION ORDER.] A transfer made pursuant 
to subdivision 1 must be in the form of a reorganization order. 
A reorganization order must be filed with the secretary of 
state, be uniform in format, and be numbered consecutively.  An 
order is effective upon filing with the secretary of state and 
remains in effect until amended or superseded.  Copies of the 
filed order must be delivered promptly by the commissioner to 
the secretary of the senate, the chief clerk of the house, and 
the chairmen of the governmental operations committees in the 
senate and house of representatives.  A reorganization order 
which transfers all or substantially all of the powers or duties 
or personnel of a department, the housing finance agency, or the 
pollution control agency is not effective until it is ratified 
by concurrent resolution or enacted into law.  
    Subd. 3.  [APPROPRIATION.] The commissioner of finance 
shall determine the fractional part of the appropriation to the 
transferor agency that is represented by the transferred 
personnel, power, or duty, and that part of the appropriation is 
reappropriated to the transferee agency.  
    Subd. 4.  [WORK OF DEPARTMENT FOR ANOTHER.] To avoid 
duplication and improve efficiency, the commissioner may direct 
an agency to do work for another agency or may direct a division 
or section of an agency to do work for another division or 
section within the same agency and shall require reimbursement 
for the work.  Reimbursements received by an agency are 
reappropriated to the account making the original expenditure in 
accordance with the transfer warrant procedure established by 
the commissioner of finance.  
    Subd. 5.  [EMPLOYEES ASSIGNED.] With the approval of the 
governor and by agreement of the heads of the departments or 
agencies concerned, any appointive subordinate officer or 
employee of a department or agency may be employed by or 
assigned to perform duties under another department or agency.  
    Sec. 43.  [16B.38] [DISSOLVED OR SUSPENDED AGENCIES.] 
    The commissioner shall undertake all necessary 
administrative functions of an agency which has been temporarily 
or permanently dissolved or suspended.  These functions may 
include but are not limited to:  authorizing payment of all 
obligations of the dissolved or suspended agency including 
payroll certifications; serving as custodian for and disposing 
of all property of the agency; and, in the event that the agency 
is only temporarily dissolved or suspended, serving as its chief 
administrative officer with all necessary powers until the 
agency is reconstituted.  To implement these responsibilities 
the commissioner may spend any necessary money from a dissolved 
or suspended agency's appropriation.  
    Sec. 44.  [16B.39] [PROGRAMS FOR STATE EMPLOYEES.] 
    Subdivision 1.  [STATE EMPLOYEES SUGGESTION BOARD.] The 
state employees suggestion board is composed of seven members 
appointed by the governor, each of whom is a state officer or 
employee.  The board shall annually elect a member to be 
chairman.  For the purposes of this section, "board" means the 
state employees suggestion board.  The membership terms, 
expenses, removal of members, and filling of vacancies on the 
board are as provided in section 15.0575. Members do not receive 
the daily compensation provided by section 15.0575.  The board 
shall formulate, establish, and maintain plans to encourage and 
reward unusual and meritorious suggestions and accomplishments 
by state employees promoting efficiency and economy in state 
government; appoint committees to consider suggestions and 
accomplishments of state employees and make recommendations on 
them to the board; and render merit awards to state employees, 
which may include certificates, medals and other appropriate 
insignia, and cash awards, in accordance with the board's 
plans.  The commissioner shall assign for the use of the board 
the personnel, facilities, and equipment required for the proper 
performance of its work.  The commissioner, on behalf of the 
board, may require assistance from any state department of any 
of its personnel and facilities.  
    Subd. 2.  [EMPLOYEE ASSISTANCE PROGRAM; ADVISORY 
COMMITTEE.] The commissioner shall provide an employee 
assistance program of training, diagnostic, and referral 
services for state employees and their dependents.  The 
commissioner shall appoint an advisory committee on state 
employee assistance of not more than 15 members to advise the 
commissioner on the program.  The committee is subject to the 
provisions of section 15.059.  
    Sec. 45.  [16B.40] [ADMINISTRATION OF STATE COMPUTER 
FACILITIES.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
45 to 50, the following terms have the meanings given them.  
    (a) "Computer activity" means the development or 
acquisition of a data processing device or system.  
    (b) "Data processing device or system" means any equipment 
or computer programs, including computer hardware, firmware, 
software, and communication protocol, used in connection with 
the processing of information via electronic data processing 
means, and includes data communication devices used in 
connection with computer facilities for the transmission of data.
    Subd. 2.  [COMMISSIONER'S RESPONSIBILITY.] The commissioner 
is charged with integrating and operating the state's computer 
facilities to serve the needs of the state government.  Except 
as otherwise provided by law, all plans and programs for systems 
and procedures analysis, information systems, and related 
computer efforts of agencies must be submitted to the 
commissioner prior to implementation for review and approval, 
modification, or rejection.  The commissioner, after consulting 
the intergovernmental information systems advisory council, 
shall:  
    (1) design and maintain a master plan for information 
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) establish standards for information systems;  
    (3) maintain a library of systems and programs developed by 
the state and its political subdivisions for use by agencies of 
government; and 
    (4) administer the communications for the state information 
system.  
    Subd. 3.  [EVALUATION PROCEDURE.] The commissioner shall 
establish and, as necessary, update and modify procedures to 
evaluate computer activities proposed by state agencies.  The 
evaluation must include 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 alternative solutions.  
    Subd. 4.  [EVALUATION AND APPROVAL REQUIREMENTS.] A state 
agency may not undertake a computer activity until the activity 
has been evaluated according to the procedures developed under 
subdivision 3 and the commissioners of administration and 
finance have given written approval of the proposed activity. If 
a proposed computer activity is not approved, the commissioner 
of finance shall cancel the unencumbered balance of any 
appropriation allotted for the activity.  The commissioners of 
administration and finance may delegate their respective 
approval powers regarding computer activities to the head of 
another agency including the agency seeking approval if 
delegation is deemed appropriate.  
    Subd. 5.  [REPORT TO LEGISLATURE.] If a proposed computer 
activity is approved, the commissioners of administration and 
finance shall submit to the legislature a concise narrative 
explanation of the computer activity and a request for any 
additional appropriation necessary to complete the activity.  
    Subd. 6.  [SYSTEM DEVELOPMENT METHODOLOGY.] The 
commissioner shall establish and, as necessary, update and 
modify a methodology for the development of approved data 
processing systems by state agencies.  The development 
methodology shall be used to define the design, programming, and 
implementation of approved data processing systems.  The 
development methodology shall 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.  [SYSTEM DEVELOPMENT METHODOLOGY REQUIREMENTS.] A 
state agency may not develop, improve, or modify a data 
processing system using any methodology other than that 
established by the commissioner.  
    Subd. 8.  [DATA SECURITY SYSTEMS.] In consultation with the 
attorney general and appropriate agency heads, the commissioner 
shall develop, install, and administer state data security 
systems consistent with state law to assure the integrity of 
computer based and all other data and to assure confidentiality 
of the data, consistent with the public's right to know.  
    Subd. 9.  [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. 46.  [16B.41] [STATE INFORMATION SYSTEMS ADVISORY TASK 
FORCE.] 
    The commissioner may appoint a state information systems 
advisory task force to help the department develop and 
coordinate a state information services master plan and make 
recommendations to the commissioner concerning the progress, 
direction, and needs of the state's computerization effort.  The 
task force expires and the terms, compensation, and removal of 
members are as provided in section 15.059.  
    Sec. 47.  [16B.42] [INTERGOVERNMENTAL INFORMATION SYSTEMS 
ADVISORY COUNCIL.] 
    Subdivision 1.  [COMPOSITION.] The governor shall appoint 
an intergovernmental information systems advisory council, to 
serve at the pleasure of the governor, consisting of 25 members. 
Fourteen members shall be appointed or elected officials of 
local governments, seven shall be representatives of state 
agencies, and four shall be selected from the community at 
large.  Further, the council shall be composed of (1) two 
members from each of the following groups:  counties outside of 
the seven county metropolitan area, cities of the second and 
third class outside the metropolitan area, cities of the second 
and third class within the metropolitan area, and cities of the 
fourth class; (2) one member from each of the following groups: 
the metropolitan council, an outstate regional body, counties 
within the metropolitan area, cities of the first class, school 
districts in the metropolitan area, and school districts outside 
the metropolitan area; (3) one member each from the state 
departments of administration, education, public welfare, 
revenue, planning and the legislative auditor; (4) one member 
from the office of the state auditor; and (5) four members from 
the state community at large.  To the extent permitted by 
available resources the commissioner shall furnish staff and 
other assistance as requested by the council.  The council shall 
expire and the terms, compensation, and removal of members of 
the advisory council shall be as provided in section 15.059.  
    Subd. 2.  [DUTIES.] The council shall assist the 
commissioner in developing and updating intergovernmental 
information systems, including data definitions, format, and 
retention standards; recommend to the commissioner policies and 
procedures governing the collection, security, and 
confidentiality of data; review intergovernmental information 
and computer systems involving intergovernmental funding; 
encourage cooperative efforts among local governments in 
developing information systems to meet individual and 
collective, operational, and external needs; bring about the 
necessary degree of standardization consistent with local 
prerogatives; yield fiscal and other information required by 
state and federal laws and regulations in readily usable form; 
foster the efficient use of available federal, state, local, and 
private resources for the development of systems; keep local 
governments abreast of the state of the art in information 
systems, and prepare guidelines for intergovernmental systems.  
    Subd. 3.  [OTHER DUTIES.] The intergovernmental 
informations systems advisory council shall (1) recommend to the 
commissioners of state departments, the legislative auditor, and 
the state auditor a method for the expeditious gathering and 
reporting of information and data between agencies and units of 
local government in accordance with cooperatively developed 
standards; (2) elect an executive committee, not to exceed seven 
members from its membership; (3) develop an annual plan, to 
include administration and evaluation of grants, in compliance 
with applicable rules; (4) provide technical information systems 
assistance or guidance to local governments for development, 
implementation, and modification of automated systems, including 
formation of consortiums for those systems.  
    Subd. 4.  [FUNDING.] Appropriations and other funds made 
available to the council for staff, operational expenses, and 
grants must be administered through the department of 
administration.  Revenues derived from royalties, 
reimbursements, or other fees from software programs, systems, 
or technical services arising out of activities funded by 
current or prior state appropriations is appropriated to the 
council for the purposes enumerated in subdivision 2.  
    Sec. 48.  [16B.43] [EDUCATION MANAGEMENT INFORMATION 
SYSTEMS.] 
    Subdivision 1.  [APPLICATION.] The authority of the 
commissioner under sections 45 to 47, 49, and 50 does not apply 
to ESV-IS, but applies to SDE-IS and computer-related services 
provided to the department of education by the department of 
administration's information services bureau.  For purposes of 
this section, "ESV-IS" and "SDE-IS" have the meanings given them 
in section 121.93.  
    Subd. 2.  [FURNISHING STAFF AND ASSISTANCE.] To the extent 
permitted by available resources, the commissioner may furnish 
staff and other assistance to the department, the state board, 
the ESV computer council, and the Minnesota educational 
computing consortium in conjunction with their performance of 
the duties imposed by sections 121.931 to 121.938.  
    Sec. 49.  [16B.44] [MODIFICATION OF OPERATING AND 
MANAGEMENT PROCEDURES.] 
    When improved program effectiveness, better use of 
services, and greater efficiency and economy in state government 
can be demonstrated, the commissioner with the approval of the 
governor may require a state agency to adjust its operating and 
management procedures to take advantage of improved systems, 
procedures, and methods resulting from systems analysis and 
information science technology.  
    Sec. 50.  [16B.45] [FUNCTION OF LEGISLATIVE AUDITOR.] 
    The legislative auditor may conduct performance evaluations 
of all systems analysis, information services, and 
computerization efforts of agencies, the University of 
Minnesota, and metropolitan boards, agencies, and commissions. 
Upon request of the governing body or the state information 
systems advisory council, the legislative auditor shall conduct 
the same services for political subdivisions of the state and 
report the findings to the governor and the legislature.  The 
cost of these evaluations must be paid by the agencies being 
evaluated.  
    Sec. 51.  [16B.46] [TELECOMMUNICATION; POWERS.] 
    The commissioner shall supervise and control all state 
telecommunication facilities including any transmission, 
emission, or reception of signs, signals, writing, images, and 
sounds or intelligence of any nature by wire, radio, optical, or 
other electromagnetic systems.  Nothing in this section 
modifies, amends, or abridges any powers and duties presently 
vested in or imposed upon the commissioner of transportation or 
the commissioner of public safety relating to telecommunications 
facilities or the commissioner of transportation relating only 
to radio air navigation facilities or other air navigation 
facilities.  
    Sec. 52.  [16B.47] [MICROGRAPHICS.] 
    The commissioner shall provide micrographics services and 
products to meet agency needs.  Within available resources, the 
commissioner may also provide micrographic services to political 
subdivisions.  Agency plans and programs for micrographics must 
be submitted to and receive the approval of the commissioner 
prior to implementation.  Upon the commissioner's approval, 
subsidiary or independent microfilm operations may be 
implemented in other state agencies.  The commissioner may 
direct that copies of official state documents be distributed to 
official state depositories on microfilm.  
    Sec. 53.  [16B.48] [GENERAL SERVICES AND COMPUTER SERVICES 
REVOLVING FUNDS.] 
    Subdivision 1.  [REIMBURSEMENTS.] Fees prescribed pursuant 
to section 56, for the rendering of the services provided in 
that section are deposited in the state treasury by the 
collecting agency and credited to the general services revolving 
fund.  
    Subd. 2.  [PURPOSE OF FUNDS.] Money in the state treasury 
credited to the general services revolving fund and money which 
is deposited in the fund is appropriated annually to the 
commissioner for the following purposes:  
    (1) to operate a central store and equipment service;  
    (2) to operate a central duplication and printing service;  
    (3) to purchase postage and related items and to refund 
postage deposits as necessary to operate the central mailing 
service;  
    (4) to operate a documents service as prescribed by section 
56; and 
    (5) to perform services for any other agency.  Money shall 
be expended for this purpose only when directed by the 
governor.  The agency receiving the services shall reimburse the 
fund for their cost, and the commissioner shall make the 
appropriate transfers when requested.  The term "services" as 
used in this clause means compensation paid officers and 
employees of the state government; supplies, materials, 
equipment, and other articles and things used by or furnished to 
an agency; and utility services, and other services for the 
maintenance, operation, and upkeep of buildings and offices of 
the state government.  
    Subd. 3.  [COMPUTER SERVICES REVOLVING FUND.] Money in the 
computer services revolving fund is appropriated annually to the 
commissioner to operate the division of computer services.  
    Subd. 4.  [REIMBURSEMENTS.] Except as specifically provided 
otherwise by law, each agency shall reimburse the computer 
services and general services revolving funds for the cost of 
all services, supplies, materials, labor and depreciation of 
equipment including reasonable overhead costs which the 
commissioner is authorized and directed to furnish an agency. 
The cost of all publications or other materials produced by the 
commissioner and financed from the general services revolving 
fund shall include reasonable overhead costs.  The commissioner 
of finance shall make appropriate transfers to the revolving 
funds described in this section when requested by the 
commissioner of administration.  The commissioner of 
administration may make allotments, encumbrances, and, with the 
approval of the commissioner of finance, disbursements in 
anticipation of such transfers.  In addition, the commissioner 
of administration, with the approval of the commissioner of 
finance, may require an agency to make advance payments to the 
revolving funds in this section sufficient to cover the agency's 
estimated obligation for a period of at least 60 days.  All such 
reimbursements and other money received by the commissioner of 
administration under this section shall be deposited in the 
appropriate revolving fund.  Any earnings remaining in the fund 
established to account for the documents service prescribed by 
section 56 at the end of each fiscal year not otherwise needed 
for present or future operations, as determined by the 
commissioners of administration and finance, shall be 
transferred to the general fund.  
    Subd. 5.  [LIQUIDATION.] If the computer services or 
general services revolving fund is abolished or liquidated, the 
total net profit from the operation of each fund shall be 
distributed to the various funds from which purchases were 
made.  The amount to be distributed to each fund shall bear to 
such net profit the same ratio as the total purchases from each 
fund bears to the total purchases from all the funds during such 
period of time as shall fairly reflect the amount of net profit 
each fund is entitled to receive under the distribution required 
by this section.  

                            CENTRAL SERVICES 
    Sec. 54.  [16B.49] [CENTRAL MAILING SYSTEM.] 
    The commissioner shall maintain and operate for agencies a 
central mailing system.  Official mail of an agency occupying 
quarters either in the capitol or in adjoining state buildings 
must be delivered unstamped to the central mailing station. 
Account must be kept of the postage required on that mail, which 
is then a proper charge against the agency delivering the mail. 
To provide funds for the payment of postage, each agency shall 
make advance payments to the commissioner sufficient to cover 
its postage obligations for at least 60 days.  
    Sec. 55.  [16B.50] [CENTRAL DUPLICATING AND PRINTING 
DIVISION.] 
    The commissioner shall maintain and operate for agencies a 
central duplicating and printing division which is responsible 
for all duplicating and printing.  The commissioner shall 
prescribe and designate classes of state printing.  The 
duplicating and printing work to be done by the division is 
restricted to producing any form, booklet or pamphlet to the 
extent the commissioner deems appropriate.  
    Sec. 56.  [16B.51] [AGENCY REPORTS.] 
    Subdivision 1.  [SUPERVISION BY COMMISSIONER.] The 
commissioner shall supervise and control the making and 
distribution of all reports and other publications of all kinds 
issued by the state and state agencies when not otherwise 
prescribed by law.  The commissioner shall also prescribe the 
manner and form of issuing reports required by sections 8.08; 
16A.50; 35.03; 139.08, subdivision 5; 256.01; 268.12, 
subdivision 2; 299C.18; 343.08; and 360.015, subdivision 17.  
    Subd. 2.  [PRESCRIBE FEES.] The commissioner may prescribe 
fees to be charged for services rendered by the state or an 
agency in furnishing to those who request them certified copies 
of records or other documents, certifying that records or 
documents do not exist and furnishing other reports, 
publications, or related material which is requested.  The fees, 
unless otherwise prescribed by law, may be fixed at the market 
rate.  The commissioner of finance is authorized to approve the 
prescribed rates for the purpose of assuring that they, in 
total, will result in receipts greater than costs in the fund. 
Fees prescribed under this subdivision are deposited in the 
state treasury by the collecting agency and credited to the 
general services revolving fund.  Nothing in this subdivision 
permits the commissioner of administration to furnish any 
service which is now prohibited or unauthorized by law.  
    Subd. 3.  [SALE OF PUBLICATIONS.] The commissioner may sell 
official reports, documents, and other publications of all 
kinds, may delegate their sale to state agencies, and may 
establish facilities for their sale within the department of 
administration and elsewhere within the state service.  
    Subd. 4.  [EXCEPTIONS.] This section does not apply to the 
Regents of the University of Minnesota or to the state 
agricultural society.  
    Subd. 5.  [LIMITATIONS ON SUBJECT MATTER PROHIBITED.] The 
commissioner may not adopt rules which limit in any way the 
subject matter of a report or publication which the law requires 
or authorizes an agency to produce.  
    Sec. 57.  [16B.52] [MISUSE OF STATE PUBLICATIONS.] 
    Subdivision 1.  [PERMISSIBLE PUBLICATIONS; PICTURES.] No 
elected, administrative, or executive state officer, may have 
printed, nor may the commissioner authorize the printing of, at 
government expense, official reports and other publications 
intended for general public circulation except those authorized 
by law or included in the intent of the appropriation out of 
which the cost will be defrayed.  Executive officers shall, 
before presenting their annual reports and other publications to 
the commissioner, examine them and exclude from them pictures of 
elected and administrative officials, and any other pictorial 
device calculated to or tending to attribute the publication to 
an individual instead of the department of state government from 
which it emanates.  All other engravings, maps, drawings and 
illustrations must be excluded from the reports and 
publications, except those the executive officers certify when 
they present the reports for printing to be necessary and to 
relate entirely to the transaction of the state's business, or 
to be reasonably required to present for clear understanding the 
substance of the report.  
    Subd. 2.  [ATTRIBUTION OF PUBLICATIONS.] A report or 
publication authorized by law and paid for from public funds 
must carry the imprimatur of the agency under whose authority it 
is issued, but it may not carry the name of an official in any 
way that might imply attributing the publication to any person, 
except where certification of the officer is required for 
authenticity of the document.  
    Subd. 3.  [DISTRIBUTION.] No report or publication 
distributed by or from an administrative or executive officer 
may contain any notice that it is sent with "the compliments" 
and may not carry letters of personal greeting from an official. 
    Subd. 4.  [EXCEPTION.] This section does not apply to the 
legislative manuals provided for in chapter 5.  
    Subd. 5.  [PUBLICATIONS BY DEPARTMENT OF ADMINISTRATION.] 
Notwithstanding the provisions of this section or any other law 
relating to the subject matter of this section, the department 
of administration may continue to publish reports, documents, 
and related materials of the same manner described in its 
catalogs of Minnesota state publications.  
    Sec. 58.  [16B.53] [SALE OF LAWS AND RESOLUTIONS.] 
    Subdivision 1.  [AUTHORITY.] The commissioner shall provide 
for the sale and distribution of copies of laws and resolutions 
on file in the office of the secretary of state in accordance 
with this section.  The secretary of state and the revisor of 
statutes shall cooperate with the commissioner in furnishing the 
services provided for in this section.  
    Subd. 2.  [CHARGES.] The commissioner shall establish 
charges for those laws and resolutions sufficient to cover their 
cost.  Fees established for the sale and distribution of laws 
and resolutions, including mailing and postage charges, may be 
accepted by the commissioner in advance, and any unused portions 
amounting to $1 or more may be returned to the person entitled 
to them upon request, notwithstanding the provision of any other 
law prohibiting refunds.  
    Subd. 3.  [REVOLVING FUND.] Money collected by the 
commissioner under this section must be deposited in the central 
services revolving fund in the state treasury.  Money in that 
fund is annually appropriated to the commissioner for the 
purposes of carrying out this section.  

                                VEHICLES 
    Sec. 59.  [16B.54] [CENTRAL MOTOR POOL, ESTABLISHMENT.] 
    Subdivision 1.  [MOTOR POOLS.] The commissioner shall 
manage a central motor pool of passenger motor vehicles and 
trucks used by state agencies with principal offices in the city 
of St. Paul and may provide for branch central motor pools at 
other places within the state.  For purposes of this section, 
"truck" means a pickup or panel truck up to one ton carrying 
capacity.  
    Subd. 2.  [VEHICLES.] (a) [ACQUISITION FROM AGENCY; 
APPROPRIATION.] The commissioner may direct an agency to 
transfer to him a passenger motor vehicle or truck presently 
assigned to it for the central motor pool.  The commissioner 
shall reimburse an agency whose motor vehicles have been paid 
for with funds dedicated by the constitution for a special 
purpose and which are assigned to the central motor pool.  The 
amount of reimbursement for a motor vehicle is its average 
wholesale price as determined from the midwest edition of the 
national automobile dealers association official used car guide. 
    (b) [PURCHASE.] To the extent that funds are available for 
the purpose, the commissioner may purchase or otherwise acquire 
additional passenger motor vehicles and trucks necessary for the 
central motor pool.  The title to all motor vehicles assigned to 
or purchased or acquired for the central motor pool is in the 
name of the department of administration.  
    (c) [TRANSFER AT AGENCY REQUEST.] On the request of an 
agency, the commissioner may transfer to the central motor pool 
any passenger motor vehicle or truck for the purpose of 
disposing of it.  The department or agency transferring the 
vehicle or truck shall be paid for it from the motor pool 
revolving account established by this section in an amount equal 
to two-thirds of the average wholesale price of the vehicle or 
truck as determined from the midwest edition of the National 
Automobile Dealers Association official used car guide. 
    (d) [VEHICLES; MARKING.] The commissioner shall provide for 
the uniform marking of all motor vehicles.  Motor vehicle colors 
must be selected from the regular color chart provided by the 
manufacturer each year.  The commissioner may further provide by 
rule for the use of motor vehicles without uniform coloring or 
marking by the governor, the lieutenant governor, the division 
of criminal apprehension, arson investigators of the division of 
fire marshal in the department of public safety, and the office 
of the attorney general.  
    Subd. 3.  [RESPONSIBLE PERSON; PERSONNEL.] The commissioner 
is responsible for the control, regulation, acquisition, 
operation, maintenance, repair, and disposal of all motor 
vehicles of the central motor pool.  The commissioner may employ 
a director and other necessary classified employees for the 
operation of the central motor pool in accordance with chapter 
43A.  
    Subd. 4.  [MAINTENANCE, REPAIR, AND STORAGE; 
APPROPRIATION.] (a) [MAINTENANCE, REPAIR, STORAGE.] The 
commissioner may contract with the head of an agency or another 
person operating facilities for the maintenance, repair, and 
storage of motor vehicles to provide for maintenance, repair, 
and storage of motor vehicles of the central motor pool.  
    (b) [APPROPRIATION.] Money received by the head of an 
agency under a contract with the commissioner under this 
subdivision is annually appropriated to the agency for the same 
purposes as money expended by the agency head for the operation 
of state-owned facilities for the maintenance, repair, and 
storage of motor pool vehicles.  
    Subd. 5.  [USE OF MOTOR VEHICLES.] The motor vehicles in 
the central motor pool are for official state business only.  An 
agency requiring the services of a motor vehicle shall request 
it from the central motor pool on either a temporary or 
permanent basis.  No privately owned motor vehicle may be used 
for official state business except when authorized by the 
commissioner.  
    Subd. 6.  [SCHEDULE OF CHARGES.] An agency using the 
facilities of the central motor pool shall periodically 
reimburse the commissioner for the services, in accordance with 
the schedule of charges the commissioner establishes.  This 
schedule of charges must be based on the costs incurred in 
operating the central motor pool, including reasonable overhead 
costs, vehicle depreciation, insurance for public liability and 
property damage, and other costs.  The commissioner must retain 
records and reports and all schedules used as a basis for 
charging state agencies for the services furnished.  
    Subd. 7.  [EXCEPTIONS.] This section does not apply to 
motor vehicles of the state patrol or the University of 
Minnesota, or to motor vehicles of any other agency which are 
specially equipped for the needs of that agency.  
     Subd. 8.  [MOTOR POOL REVOLVING ACCOUNT.] (a) [ACCOUNT 
ESTABLISHED.] Money or reimbursements the commissioner receives 
from the operation of the central motor pool is deposited in the 
state treasury and credited to a motor pool revolving account. 
Money in the account is annually appropriated to the 
commissioner to carry out this section.  The motor pool 
revolving account may be used to provide material transfer 
services to agencies.  
    (b) [UNOBLIGATED EXCESS TRANSFERRED.] When the unobligated 
amount of money in the state treasury credited to the motor pool 
revolving account exceeds the sum of $438,000 at the end of any 
fiscal year, the unobligated amount in excess of $438,000 must 
be transferred to the general fund in the state treasury.  
    Sec. 60.  [16B.55] [USE OF STATE VEHICLES; COMPENSATION FOR 
USE OF PERSONAL VEHICLES.] 
    Subdivision 1.  [DEFINITION.] For purposes of this section, 
"state vehicle" means a vehicle owned or leased by the state or 
loaned to the state.  
    Subd. 2.  [PROHIBITED USES.] A state vehicle may be used 
only for authorized state business.  A state vehicle may not be 
used for transportation to or from the residence of a state 
employee, except as provided in subdivision 3.  
    Subd. 3.  [PERMITTED USES.] A state vehicle may be used by 
a state employee to travel to or from the employee's residence:  
    (1) on a day on which it may be necessary for the employee 
to respond to a work-related emergency during hours when the 
employee is not normally working;  
    (2) if the employee has been assigned the use of a state 
vehicle for authorized state business on an extended basis, and 
the employee's primary place of work is not the state work 
station to which he is permanently assigned;  
    (3) if the employee has been assigned the use of a state 
vehicle for authorized state business away from the work station 
to which he is permanently assigned, and the number of miles 
travelled, or the time needed to conduct the business, will be 
minimized if the employee uses a state vehicle to travel to the 
employee's residence before or after travelling to the place of 
state business.  
     Use of a state vehicle pursuant to this subdivision 
requires the prior approval of the agency head or the designee 
of the agency head.  Within 15 days of the end of each 
three-month period, the head of each agency shall report to the 
commissioner on each case in which a state vehicle is used by an 
employee of that agency to travel to or from the employee's 
residence.  The commissioner shall specify the form of this 
report and the information to be included.  If no state vehicles 
have been used for this travel, the head of the state agency 
shall report this to the commissioner; or 
    (4) if the employee is authorized to participate in a 
ridesharing program established by the commissioner pursuant to 
section 174.257.  
    Subd. 4.  [PERSONAL VEHICLES.] No state employee shall be 
compensated by the state for use of a personal vehicle for 
travel between the employee's residence and the state work 
station to which the employee is permanently assigned, except 
pursuant to a collective bargaining agreement negotiated under 
chapter 179 or a compensation plan adopted by the commissioner 
of employee relations under section 43A.05.  A collective 
bargaining agreement or compensation plan may only provide for 
this compensation in cases in which an employee is called back 
to work during hours when the employee is not normally working.  
    Subd. 5.  [EXCLUSIONS.] Subdivisions 2 to 4 do not apply to 
the van pooling program established in section 61, to a 
ride-sharing program established by the department of 
transportation, to a trooper employed by the state patrol, or to 
use of a state vehicle by the governor or lieutenant governor.  
    Subd. 6.  [ADMINISTRATIVE POLICIES.] The commissioner shall 
determine when an employee must reimburse the state for use of a 
state vehicle and the rates of reimbursement.  Rates of 
reimbursement shall cover the full cost to the state for the 
travel for which reimbursement is required.  The commissioner 
shall also set operating procedures for use of state vehicles. 
These rules, rates, and operating procedures are not subject to 
the Administrative Procedure Act.  Money received under these 
rules shall be deposited as nondedicated receipts to the credit 
of the fund from which the costs of operating the individual 
vehicles are paid.  
    Sec. 61.  [16B.56] [COMMUTER VANS; STATE EMPLOYEES AND 
SPOUSES; BLIND VENDING OPERATORS.] 
    Subdivision 1.  [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 
[ESTABLISHMENT.] To conserve energy and alleviate traffic 
congestion around state offices, the commissioner shall, in 
cooperation with the commissioner of energy and economic 
development, the commissioner of transportation, and interested 
nonprofit agencies, establish and operate an employee 
transportation program using commuter vans with a capacity of 
not less than seven nor more than 16 passengers.  Commuter vans 
may be used by state employees and blind vending operators to 
travel between their homes and their work locations, and for 
personal purposes after working hours, not including partisan 
political activity.  The commissioner shall acquire or lease 
commuter vans, or otherwise contract for the provision of 
commuter vans, and shall make the vans available for the use of 
state employees and blind vending operators in accordance with 
standards and procedures adopted by the commissioner.  The 
commissioner shall promote the maximum participation of state 
employees and blind vending operators in the use of the vans.  
    (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 
standards and procedures under this section without regard to 
chapter 14.  The commissioner shall provide for the recovery by 
the state of vehicle acquisition, lease, operation, and 
insurance costs through efficient and convenient assignment of 
vans, and for the billing of costs and collection of fees.  A 
state employee using a van for personal use shall pay, pursuant 
to the standards and procedures adopted by the commissioner, for 
operating and routine maintenance costs incurred as a result of 
the personal use.  Fees collected under this subdivision shall 
be deposited in the accounts from which the costs of operating, 
maintaining, and leasing or amortization for the specific 
vehicle are paid.  
    Subd. 2.  [ELIGIBLE PARTICIPANTS.] State and other public 
employees and their spouses and other people who work in 
buildings owned or leased by the state are eligible for the 
employee transportation program established by this section, if 
the driver and substitute driver of every van pool are state 
employees and if state employees constitute a majority of the 
members of every van pool.  Available space in van pools must, 
whenever possible, be filled by state employees.  
    Subd. 3.  [AREAS OF USE.] Use of the vans pursuant to this 
section is limited to areas not having adequate public 
transportation between the residences of state employees and 
blind vending operators and their places of employment.  
    Subd. 4.  [EVALUATION.] The commissioner shall at least 
semiannually inform the metropolitan council and the capitol 
area architectural and planning board on the operation of the 
program.  
    Subd. 5.  [INSURANCE; LIMITATIONS.] Notwithstanding section 
15.31 or any other law to the contrary, the commissioner may 
purchase, pursuant to this chapter, collision insurance coverage 
for the commuter vans.  Notwithstanding sections 59, subdivision 
2, and 168.012, the vans may not be marked.  The vans may not be 
equipped with tax-exempt motor vehicle number plates.  
    Subd. 6.  [BLIND VENDING OPERATOR.] "Blind vending 
operator" means a blind person licensed to operate a vending 
stand or machine pursuant to section 248.07.  
    Sec. 62.  [16B.57] [GASOLINE AND PETROLEUM PRODUCTS, SOURCE 
OF SUPPLY FOR AGENCIES.] 
    Subdivision 1.  [PETROLEUM PRODUCTS FACILITIES.] The 
commissioner may require a state agency which has facilities for 
the storage and distribution of gasoline and other petroleum 
products to furnish gasoline and other petroleum products to any 
other state agency and shall require payment to compensate for 
the cost of those products.  The commissioner shall prescribe 
all procedures for the guidance of state agencies in carrying 
out the requirements of this section.  
    Subd. 2.  [APPROPRIATION.] Money paid by one state agency 
to another to compensate for the cost of products furnished 
under subdivision 1 is annually appropriated to the state agency 
which furnishes those products.  
    Sec. 63.  [16B.58] [STATE PARKING FACILITIES.] 
    Subdivision 1.  [POWERS AND DUTIES OF THE COMMISSIONER.] No 
person may park a motor vehicle, either privately or publicly 
owned, upon any parking lot or facility owned or operated by the 
state except as authorized by this section.  The commissioner 
shall operate and supervise all state parking lots and 
facilities.  He may fix and collect rents, charges, or fees in 
connection with and for the use of any state parking lot or 
facility within the cities of St. Paul and Minneapolis except 
for any state lot or facility the control of which is vested by 
law in a state agency other than the department of 
administration.  
    Subd. 2.  [RULES.] Copies of the commissioner's rules under 
this section must be provided to all contract parkers.  Each 
parking lot or facility must be posted with notice of who is 
entitled to park there.  
    Subd. 3.  [REMOVAL AND IMPOUNDING OF VEHICLES.] A motor 
vehicle parked on a state parking lot or facility in violation 
of the rules of the commissioner is a public nuisance and the 
commissioner shall provide for the abatement of the nuisance by 
rules, including provision for the removal and impounding of the 
motor vehicle.  The cost of the removal and impounding is a lien 
against the motor vehicle until paid.  
    Subd. 4.  [VIOLATIONS.] A person, elective or appointed 
state official, firm, association, or corporation which violates 
any of the provisions of this section or any rule made by the 
commissioner under this section is guilty of a misdemeanor.  
    Subd. 5.  [MONEY COLLECTED.] Money collected by the 
commissioner as rents, charges, or fees in connection with and 
for the use of a parking lot or facility is appropriated to the 
commissioner for the purpose of operating, maintaining, and 
improving parking lots or facilities owned or operated by the 
state, including providing necessary and suitable uniforms for 
employees, and to carry out the purposes of this section, except 
as provided in subdivision 7.  
    Subd. 6.  [LEGISLATIVE PARKING RESOLUTIONS.] The provisions 
of this section do not affect rules of parking adopted by 
resolution of the legislature during legislative sessions.  
    Subd. 7.  [SURCHARGE FOR VEHICLES OCCUPIED BY ONE PERSON.] 
The commissioner shall impose a surcharge of 25 percent for 
vehicles occupied by only one person parking in a state parking 
facility in the capitol area, as described by section 15.50, 
subdivision 2.  The revenue from this additional charge shall be 
placed by the commissioner in a special account.  For the 
benefit of employees employed in the capitol area, the money in 
the account is appropriated to the commissioner and shall be 
used by the commissioner to acquire or lease commuter vans 
pursuant to section 61 and, within limits and upon conditions 
the commissioner determines to be necessary, to reimburse state 
agencies for costs resulting from agreements with the 
metropolitan transit commission or other operators pursuant to 
section 473.409.  The commissioner may adopt rules necessary to 
administer the provisions of this subdivision, subdivision 5, 
and section 473.409.  The rules may exempt from the surcharge 
vehicles operated by persons whom the commissioner determines 
have job requirements that make car pooling impractical.  
    Subd. 8.  [FEES CHARGED STATE EMPLOYEES.] Notwithstanding 
any other law to the contrary, the commissioner shall charge 
state employees for parking facilities which are used by them 
and furnished for their use pursuant to any lease entered into 
between the state of Minnesota and the lessor of any privately 
owned property situated in the seven county metropolitan area.  

                          STATE BUILDING CODE 
    Sec. 64.  [16B.59] [STATE BUILDING CODE; POLICY AND 
PURPOSE.] 
    The state building code governs the construction, 
reconstruction, alteration, and repair of state-owned buildings 
and other structures to which the code is applicable.  The 
commissioner shall administer and amend a state code of building 
construction which will provide basic and uniform performance 
standards, establish reasonable safeguards for health, safety, 
welfare, comfort, and security of the residents of this state 
and provide for the use of modern methods, devices, materials, 
and techniques which will in part tend to lower construction 
costs.  The construction of buildings should be permitted at the 
least possible cost consistent with recognized standards of 
health and safety.  
    Sec. 65.  [16B.60] [DEFINITIONS, STATE BUILDING CODE.] 
    Subdivision 1.  [SCOPE.] For the purposes of sections 64 to 
78, the terms defined in this section have the meanings given 
them.  
    Subd. 2.  [CITY.] "City" means a home rule charter or 
statutory city.  
    Subd. 3.  [MUNICIPALITY.] "Municipality" means a city, 
county, or town meeting the requirements of section 368.01, 
subdivision 1, or the University of Minnesota.  
    Subd. 4.  [CODE.] "Code" means the state building code 
adopted by the commissioner in accordance with sections 64 to 78.
    Subd. 5.  [AGRICULTURAL BUILDING.] "Agricultural building" 
means a structure on agricultural land as defined in section 
273.13, subdivision 6, designed, constructed, and used to house 
farm implements, livestock, or agricultural produce or products 
used by the owner, lessee, and sublessee of the building and 
members of their immediate families, their employees, and 
persons engaged in the pickup or delivery of agricultural 
produce or products.  
    Subd. 6.  [PUBLIC BUILDING.] "Public building" means a 
building and its grounds, the cost of which is paid for by the 
state, a state agency or governmental subdivision, an agency of 
a governmental subdivision, or a school district.  
    Subd. 7.  [PHYSICALLY HANDICAPPED.] "Physically 
handicapped" means having sight disabilities, hearing 
disabilities, disabilities of incoordination, disabilities of 
aging, or other disabilities that significantly reduce mobility, 
flexibility, coordination, or perceptiveness.  
    Subd. 8.  [REMODELING.] "Remodeling" means deliberate 
reconstruction of an existing public building in whole or in 
part in order to bring it up to date in conformity with present 
uses of the structure and to which other rules on the upgrading 
of health and safety provisions are applicable.  
    Sec. 66.  [16B.61] [GENERAL POWERS OF COMMISSIONER, STATE 
BUILDING CODE.] 
    Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 64 
to 78, the commissioner shall by rule establish a code of 
standards for the construction, reconstruction, alteration, and 
repair of state-owned buildings, governing matters of structural 
materials, design and construction, fire protection, health, 
sanitation, and safety.  The code must conform insofar as 
practicable to model building codes generally accepted and in 
use throughout the United States.  In the preparation of the 
code, consideration must be given to the existing state-wide 
specialty codes presently in use in the state.  Model codes with 
necessary modifications and state-wide specialty codes may be 
adopted by reference.  The code must be based on the application 
of scientific principles, approved tests, and professional 
judgment.  To the extent possible, the code must be adopted in 
terms of desired results instead of the means of achieving those 
results, avoiding wherever possible the incorporation of 
specifications of particular methods or materials.  To that end 
the code must encourage the use of new methods and new 
materials.  Except as otherwise provided in sections 64 to 78, 
the commissioner shall administer and enforce the provisions of 
those sections.  
    Subd. 2.  [ENFORCEMENT BY CERTAIN BODIES.] Under the 
direction and supervision of the commissioner, the provisions of 
the code relating to electrical installations shall be enforced 
by the state board of electricity, pursuant to the Minnesota 
Electrical Act, the provisions relating to plumbing shall be 
enforced by the commissioner of health, the provisions relating 
to fire protection shall be enforced by the state fire marshal, 
the provisions relating to high pressure steam piping and 
appurtenances and elevators shall be enforced by the department 
of labor and industry, and the code as applied to public school 
buildings shall be enforced by the state board of education. 
Fees for inspections conducted by the state board of electricity 
shall be paid in accordance with the rules of the state board of 
electricity.  
    Subd. 3.  [SPECIAL REQUIREMENTS.] (a) [SPACE FOR COMMUTER 
VANS.] The code must require that any parking ramp or other 
parking facility constructed in accordance with the code include 
an appropriate number of spaces suitable for the parking of 
motor vehicles having a capacity of seven to 16 persons and 
which are principally used to provide prearranged commuter 
transportation of employees to or from their place of employment 
or to or from a transit stop authorized by a local transit 
authority.  
    (b) [SMOKE DETECTION DEVICES.] The code must require that 
all dwellings, lodging houses, apartment houses, and hotels as 
defined in section 299F.362 comply with the provisions of 
section 299F.362.  
    (c) [DOORS IN NURSING HOMES AND HOSPITALS.] The state 
building code may not require that each door entering a sleeping 
or patient's room from a corridor in a nursing home or hospital 
with an approved complete standard automatic fire extinguishing 
system be constructed or maintained as self-closing or 
automatically closing.  
    Subd. 4.  [REVIEW OF PLANS FOR PUBLIC BUILDINGS.] 
Construction or remodeling may not begin on any public building 
owned by the state until the plans and specifications of the 
public building have been approved by the commissioner. In the 
case of any other public building, the plans and specifications 
must be submitted to the commissioner for review, and within 30 
days after his receipt of the plans and specifications, he shall 
notify the submitting authority of his recommendations if any.  
    Subd. 5.  [ACCESSIBILITY.] (a) [PUBLIC BUILDINGS.] The code 
must provide for making public buildings constructed or 
remodeled after July 1, 1963, accessible to and usable by 
physically handicapped persons, although this does not require 
the remodeling of public buildings solely to provide 
accessibility and usability to the physically handicapped when 
remodeling would not otherwise be undertaken.  
    (b) [LEASED SPACE.] No agency of the state may lease space 
for agency operations in a non-state-owned building unless the 
building satisfies the requirements of the state building code 
for accessibility by the physically handicapped, or is eligible 
to display the state symbol of accessibility.  This limitation 
applies to leases of 30 days or more for space of at least 1,000 
square feet.  
    (c) [MEETINGS OR CONFERENCES.] Meetings or conferences for 
the public or for state employees which are sponsored in whole 
or in part by a state agency must be held in buildings that meet 
the state building code requirements relating to accessibility 
for physically handicapped persons.  This subdivision does not 
apply to any classes, seminars, or training programs offered by 
a state university, the University of Minnesota, or a state 
community college.  Meetings or conferences intended for 
specific individuals none of whom need the accessibility 
features for handicapped persons specified in the state building 
code need not comply with this subdivision unless a handicapped 
person gives reasonable advance notice of his or her intent to 
attend the meeting or conference.  When sign language 
interpreters will be provided, meetings or conference sites must 
be chosen which allow hearing impaired participants to see their 
signing clearly.  
    (d) [EXEMPTIONS.] The commissioner may grant an exemption 
from the requirements of paragraphs (b) and (c) in advance if an 
agency has demonstrated that reasonable efforts were made to 
secure facilities which complied with those requirements and if 
the selected facilities are the best available for access for 
handicapped persons.  Exemptions shall be granted using criteria 
developed by the commissioner in consultation with the council 
for the handicapped.  
    (e) [SYMBOL INDICATING ACCESS.] The wheelchair symbol 
adopted by Rehabilitation International's Eleventh World 
Congress is the state symbol indicating buildings, facilities, 
and grounds which are accessible to and usable by handicapped 
persons.  In the interests of uniformity, this symbol in its 
white on blue format is the sole symbol for display in or on all 
public or private buildings, facilities, and grounds which 
qualify for its use.  The secretary of state shall obtain the 
symbol and keep it on file.  No building, facility, or grounds 
may display the symbol unless it is in compliance with the rules 
adopted by the commissioner under subdivision 1.  Before any 
rules are proposed for adoption under this paragraph, the 
commissioner shall consult with the state council for the 
handicapped.  Rules adopted under this paragraph must be 
enforced in the same way as other accessibility rules of the 
state building code.  
    (f) [MUNICIPAL ENFORCEMENT.] Municipalities which have not 
adopted the state building code may enforce the building code 
requirements for handicapped persons by either entering into a 
joint powers agreement for enforcement with another municipality 
which has adopted the state building code; or contracting for 
enforcement with an individual certified under section 70, 
subdivision 3, to enforce the state building code.  
    Sec. 67.  [16B.62] [STATE BUILDING CODE; APPLICATION.] 
    Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The state building 
code applies state-wide and supersedes the building code of any 
municipality.  The state building code does not apply to 
agricultural buildings except with respect to state inspections 
required or rulemaking authorized by sections 104.05, 326.244, 
and 116J.19, subdivision 8.  All municipalities shall adopt and 
enforce the state building code with respect to new construction 
within their respective jurisdictions.  
    If a city has adopted or is enforcing the state building 
code on June 3, 1977, or determines by ordinance after that date 
to undertake enforcement, it shall enforce the code within the 
city.  A city may by ordinance extend the enforcement of the 
code to contiguous unincorporated territory not more than two 
miles distant from its corporate limits in any direction. Where 
two or more noncontiguous cities which have elected to enforce 
the code have boundaries less than four miles apart, each is 
authorized to enforce the code on its side of a line equidistant 
between them.  Once enforcement authority is extended 
extraterritorially by ordinance, the authority may continue to 
be exercised in the designated territory even though another 
city less than four miles distant later elects to enforce the 
code.  After the extension, the city may enforce the code in the 
designated area to the same extent as if the property were 
situated within its corporate limits.  
    A city which, on June 3, 1977, had not adopted the code may 
not commence enforcement of the code within or outside of its 
jurisdiction until it has provided written notice to the 
commissioner, the county auditor, and the town clerk of each 
town in which it intends to enforce the code.  A public hearing 
on the proposed enforcement must be held not less than 30 days 
after the notice has been provided.  Enforcement of the code by 
the city commences on the first day of January in the year 
following the notice and hearing.  
    Municipalities may provide for the issuance of permits, 
inspection, and enforcement within their jurisdictions by means 
which are convenient, and lawful, including by means of 
contracts with other municipalities pursuant to section 471.59, 
and with qualified individuals.  In areas outside of the 
enforcement authority of a city, the fee charged for the 
issuance of permits and inspections for single family dwellings 
may not exceed the greater of $100 or .005 times the value of 
the structure, addition, or alteration.  The other 
municipalities or qualified individuals may be reimbursed by 
retention or remission of some or all of the building permit fee 
collected or by other means.  In areas of the state where 
inspection and enforcement is unavailable from qualified 
employees of municipalities, the commissioner shall train and 
designate individuals available to carry out inspection and 
enforcement on a fee basis.  
    Subd. 2.  [ENFORCEMENT BY STATE BUILDING INSPECTOR.] If the 
commissioner determines that a municipality is not properly 
administering and enforcing the state building code as provided 
in section 76, the commissioner may have the administration and 
enforcement in the involved municipality undertaken by the state 
building inspector.  The commissioner shall notify the affected 
municipality in writing immediately upon making the 
determination, and the municipality may challenge the 
determination as a contested case before the commissioner 
pursuant to the Administrative Procedure Act.  In municipalities 
not properly administering and enforcing the state building 
code, and in municipalities who determine not to administer and 
enforce the state building code, the commissioner shall have 
administration and enforcement undertaken by the state building 
inspector or by another inspector certified by the state.  The 
commissioner shall determine appropriate fees to be charged for 
the administration and enforcement service rendered.  Any cost 
to the state arising from the state administration and 
enforcement of the state building code shall be borne by the 
subject municipality.  
    Sec. 68.  [16B.63] [STATE BUILDING INSPECTOR.] 
    Subdivision 1.  [APPOINTMENT.] The commissioner shall 
appoint a state building inspector who under the direction and 
supervision of the commissioner shall administer the code.  
    Subd. 2.  [QUALIFICATIONS.] To be eligible for appointment 
as state building inspector an individual must be competent in 
the field of administration and shall have the experience in 
building design, construction, and supervision which the 
commissioner considers necessary.  
    Subd. 3.  [POWERS AND DUTIES.] The state building inspector 
may, with the approval of the commissioner, employ personnel 
necessary to carry out his function under sections 64 to 78. The 
state building inspector shall distribute without charge one 
copy of the code to each municipality within the state. 
Additional copies shall be made available to municipalities and 
interested parties for a fee prescribed by the commissioner. The 
state building inspector shall perform other duties in 
administering the code assigned to him by the commissioner.  
    Sec. 69.  [16B.64] [APPLICATION OF ADMINISTRATIVE PROCEDURE 
ACT.] 
    Subdivision 1.  [APPLICABILITY.] Subject to this section, 
the adoption of the code and amendment is subject to the 
Administrative Procedure Act.  
    Subd. 2.  [DISTRIBUTION OF INCORPORATIONS BY REFERENCE.] 
The commissioner need not publish or distribute those parts of 
the code which are adopted by reference pursuant to section 
14.06.  
    Subd. 3.  [FILING.] The commissioner shall file one copy of 
the complete code with the secretary of state, except that all 
standards referred to in any model or state-wide specialty code 
or any of the modifications of a code need not be filed.  All 
standards referred to in the code must be kept on file and 
available for inspection in the office of the commissioner.  
    Subd. 4.  [HEARINGS.] The commissioner, except in the case 
of energy conservation standards promulgated or amended pursuant 
to section 116J.19, subdivision 8, shall hold all state hearings 
and make all determinations regarding any subject matter dealt 
with in the code including those in which another state agency 
proposes to adopt or amend rules which are incorporated by 
reference into the code or whenever the commissioner proposes to 
incorporate those rules into the state building code.  In no 
event shall a state agency subsequently authorized to adopt 
rules involving state building code subject matter proceed to 
adopt the rules without prior consultation with the commissioner.
    Subd. 5.  [PROPOSED AMENDMENTS; HEARINGS.] Any interested 
person may propose amendments to the code which may be either 
applicable to all municipalities or, where it is alleged and 
established that conditions exist within a municipality which 
are not generally found within other municipalities, amendments 
may be restricted in application to that municipality.  Notice 
of public hearings on proposed amendments shall be given to the 
governing bodies of all municipalities in addition to those 
persons entitled to notice under the Administrative Procedure 
Act.  
    Subd. 6.  [ADOPTION.] The commissioner shall approve any 
proposed amendments which he deems to be reasonable in 
conformity with the policy and purpose of the code and justified 
under the particular circumstances involved.  Upon adoption, a 
copy of each amendment must be distributed to the governing 
bodies of all affected municipalities.  
    Subd. 7.  [INVESTIGATION AND RESEARCH.] With the approval 
of the commissioner the state building inspector shall 
investigate or provide for investigations, or may accept 
authenticated reports from authoritative sources, concerning new 
materials or modes of construction intended for use in the 
construction of buildings or structures, and shall propose 
amendments to the code setting forth the conditions under which 
the new materials or modes may be used.  
    Sec. 70.  [16B.65] [BUILDING OFFICIALS.] 
    Subdivision 1.  [APPOINTMENTS.] The governing body of each 
municipality shall, unless other means are already provided, 
appoint a person to administer the code who shall be known as a 
building official.  Two or more municipalities may combine in 
the appointment of a single building official for the purpose of 
administering the provisions of the code within their 
communities.  In those municipalities for which no building 
officials have been appointed, the state building inspector, 
with the approval of the commissioner, may appoint building 
officials to serve until the municipalities have made an 
appointment.  If the state building inspector is unable to make 
an appointment he may use whichever state employees or state 
agencies are necessary to perform the duties of the building 
official.  All costs incurred by virtue of an appointment by the 
state building inspector or services rendered by state employees 
must be borne by the involved municipality.  Receipts arising 
from the appointment must be paid into the state treasury and 
credited to the general fund.  
    Subd. 2.  [QUALIFICATIONS.] A building official, to be 
eligible for appointment, must have the experience in design, 
construction, and supervision which the commissioner deems 
necessary and must be generally informed on the quality and 
strength of building materials, accepted building construction 
requirements, and the nature of equipment and needs conducive to 
the safety, comfort, and convenience of building occupants. Each 
building official must be certified under this section, except 
that the qualifications outlined in this section are not 
mandatory regarding any building official in any municipality 
engaged in the administration of a building code on May 27, 
1971, and continuing that function through July 1, 1972.  
    Subd. 3.  [CERTIFICATION.] The department of employee 
relations, with the approval of the commissioner, shall either:  
    (1) prepare and conduct oral, written, and practical 
examinations to determine if a person is qualified pursuant to 
subdivision 2 to be a building official, or 
    (2) accept documentation of successful completion of 
programs of training developed by public agencies, as proof of 
qualification pursuant to subdivision 2.  
    Upon a determination of qualification under either clause 
(1) or (2) of this section the commissioner shall issue a 
certificate to the building official stating that he is 
certified.  Each person applying for examination and 
certification pursuant to this section shall pay a fee of $20. 
The department of employee relations and the commissioner or his 
designee may establish classes of certification that will 
recognize the varying complexities of code enforcement in the 
municipalities within the state.  Except as provided by 
subdivision 2, no person may act as a building official for a 
municipality unless the department of employee relations and the 
commissioner determine that he is qualified.  The department of 
employee relations may, with the approval of the commissioner, 
prepare and conduct educational programs designed to train and 
assist building officials in carrying out their 
responsibilities.  The commissioner shall reimburse the 
department of employee relations for costs of any services 
performed by them pursuant to this section.  
    Subd. 4.  [DUTIES.] Building officials shall, in the 
municipality for which they are appointed, attend to all aspects 
of code administration, including the issuance of all building 
permits and the inspection of all manufactured home 
installations.  The commissioner may direct a municipality with 
a building official to perform services for another 
municipality, and in that event the municipality being served 
shall pay the municipality rendering the services the reasonable 
costs of the services.  The costs may be subject to approval by 
the commissioner.  
    Subd. 5.  [REMOVAL FROM OFFICE.] Except as otherwise 
provided for by law the commissioner may, upon notice and 
hearing, direct the dismissal of a building official when it 
appears to him by competent evidence that the building official 
has consistently failed to act in the public interest in the 
performance of his duties.  Notice must be provided and the 
hearing conducted in accordance with the provisions of chapter 
14 governing contested case proceedings.  Nothing in this 
subdivision limits or otherwise affects the authority of a 
municipality to dismiss or suspend a building official at its 
discretion, except as otherwise provided for by law.  
    Subd. 6.  [VACANCIES.] In the event that a certified 
building official vacates his position within a municipality, 
that municipality shall appoint a certified building official to 
fill the vacancy as soon as possible.  If the municipality fails 
to appoint a certified building official within 90 days of the 
occurrence of the vacancy, the state building inspector may make 
the appointment or provide state employees to serve that 
function as provided in subdivision 1.  
    Sec. 71.  [16B.66] [CERTAIN INSPECTIONS.] 
    The state building inspector may, upon an application 
setting forth a set of plans and specifications that will be 
used in more than one municipality to acquire building permits, 
review and approve the application for the construction or 
erection of any building or structure designed to provide 
dwelling space for no more than two families if the set of plans 
meets the requirements of the state building code.  All costs 
incurred by the state building inspector by virtue of the 
examination of the set of plans and specifications must be paid 
by the applicant.  The plans and specifications or any plans and 
specifications required to be submitted to a state agency must 
be submitted to the state building inspector who shall examine 
them and if necessary distribute them to the appropriate state 
agencies for scrutiny regarding adequacy as to electrical, fire 
safety, and all other appropriate features.  These state 
agencies shall examine and promptly return the plans and 
specifications together with their certified statement as to the 
adequacy of the instruments regarding that agency's area of 
concern.  A building official shall issue a building permit upon 
application and presentation to him of a set of plans and 
specifications bearing the approval of the state building 
inspector if the requirements of all other local ordinances are 
satisfied.  
    Sec. 72.  [16B.67] [APPEALS.] 
    A person aggrieved by the final decision of any 
municipality as to the application of the code, including any 
rules adopted under sections 471.465 to 471.469, may, within 30 
days of the decision, appeal to the commissioner.  Appellant 
shall submit a fee of $20, payable to the commissioner, with his 
request for appeal.  The final decision of the involved 
municipality is subject to review de novo by the commissioner or 
his designee.  The commissioner shall submit his written 
findings to the parties.  Any person aggrieved by a ruling of 
the commissioner may appeal in accordance with chapter 14.  For 
the purpose of this section "any person aggrieved" includes the 
state council for the handicapped.  No fee shall be required 
when the council for the handicapped is the appellant.  
    Sec. 73.  [16B.68] [CERTAIN PERMITS.] 
    Building permits or certificates of occupancy validly 
issued before July 1, 1972, regarding buildings or structures 
being constructed or altered according to the permits or 
certificates, are valid after that date.  The construction may 
be completed according to the building permit, unless the 
building official determines that life or property is in 
jeopardy.  
    Sec. 74.  [16B.69] [VIOLATION, PENALTY.] 
    A violation of the code is a misdemeanor.  
    Sec. 75.  [16B.70] [SURCHARGE.] 
    Subdivision 1.  [COMPUTATION.] To defray the costs of 
administering sections 64 to 78, a surcharge is imposed on all 
permits issued by municipalities in connection with the 
construction of or addition or alteration to buildings and 
equipment or appurtenances after June 30, 1971, as follows:  
    If the fee for the permit issued is fixed in amount the 
surcharge is equivalent to 1/2 mill (.0005) of the fee or 50 
cents, whichever amount is greater.  For all other permits, the 
surcharge is as follows:  (a) if the valuation of the structure, 
addition, or alteration is $1,000,000 or less, the surcharge is 
equivalent to 1/2 mill (.0005) of the valuation of the 
structure, addition, or alteration; (b) if the valuation is 
greater than $1,000,000, the surcharge is $500 plus two-fifths 
mill (.0004) of the value between $l,000,000 and $2,000,000; (c) 
if the valuation is greater than $2,000,000 the surcharge is 
$900 plus three-tenths mill (.0003) of the value between 
$2,000,000 and $3,000,000; (d) if the valuation is greater than 
$3,000,000 the surcharge is $1,200 plus one-fifth mill (.0002) 
of the value between $3,000,000 and $4,000,000; (e) if the 
valuation is greater than $4,000,000 the surcharge is $1,400 
plus one-tenth mill (.0001) of the value between $4,000,000 and 
$5,000,000; and (f) if the valuation exceeds $5,000,000 the 
surcharge is $1,500 plus one-twentieth mill (.00005) of the 
value which exceeds $5,000,000.  
    By September 1 of each odd-numbered year, the commissioner 
shall rebate to municipalities any money received under this 
section and section 67 in the previous biennium in excess of the 
cost to the building code division in that biennium of carrying 
out their duties under sections 64 to 78.  The rebate to each 
municipality must be in proportion to the amount of the 
surcharges collected by that municipality and remitted to the 
state.  The amount necessary to meet the commissioner's rebate 
obligations under this subdivision is appropriated to the 
commissioner from the general fund.  
    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 two 
percent of the surcharges collected 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 
four percent of the surcharges collected to apply against the 
administrative expenses the municipalities incur in collecting 
the surcharges.  The report, which must be in a form prescribed 
by the commissioner, must be submitted together with a 
remittance covering the surcharges collected by the 15th day 
following the month or quarter in which the surcharges are 
collected.  All surcharges and other fees prescribed by sections 
64 to 76, which are payable to the state, must be paid to the 
commissioner who shall deposit them in the state treasury for 
credit to the general fund.  
    Sec. 76.  [16B.71] [PERMIT FEES, TO WHOM APPLICABLE.] 
    Municipal building officials shall administer and enforce 
the state building code with respect to all subject structures 
constructed within their jurisdiction, including all buildings 
constructed by the state of Minnesota, its agencies, 
departments, and instrumentalities, school districts, 
municipalities as defined in section 65, and the University of 
Minnesota.  These governmental bodies shall pay the building 
permit fees and surcharges that the inspecting municipality 
customarily imposes for its administration and enforcement of 
the code.  
    Sec. 77.  [16B.72] [REFERENDA ON STATE BUILDING CODE IN 
NONMETROPOLITAN COUNTIES.] 
    Notwithstanding any other provision of law to the contrary, 
a county that is not a metropolitan county as defined by section 
473.121, subdivision 4, may provide, by a vote of the majority 
of its electors residing outside of municipalities that have 
adopted the state building code before January 1, 1977, that no 
part of the state building code except the building requirements 
for handicapped persons applies within its jurisdiction.  
    The county board may submit to the voters at a regular or 
special election the question of adopting the building code. The 
county board shall submit the question to the voters if it 
receives a petition for the question signed by a number of 
voters equal to at least five percent of those voting in the 
last general election.  The question on the ballot must be 
stated substantially as follows:  
    "Shall the state building code be adopted in .......... 
County?"  
    If the majority of the votes cast on the proposition is in 
the negative, the state building code does not apply in the 
subject county, outside home rule charter or statutory cities or 
towns that adopted the building code before January 1, 1977, 
except the building requirements for handicapped persons do 
apply.  
    Nothing in this section precludes a home rule charter or 
statutory city or town that did not adopt the state building 
code before January 1, 1977, from adopting and enforcing the 
state building code within its jurisdiction.  
    Sec. 78.  [16B.73] [STATE BUILDING CODE IN MUNICIPALITIES 
UNDER 2,500; LOCAL OPTION.] 
    The governing body of a municipality whose population is 
less than 2,500 may provide that the state building code, except 
the requirements for handicapped persons, will not apply within 
the jurisdiction of the municipality, if the municipality is 
located in whole or in part within a county exempted from its 
application under section 77.  If more than one municipality has 
jurisdiction over an area, the state building code continues to 
apply unless all municipalities having jurisdiction over the 
area have provided that the state building code, except the 
requirements for handicapped persons, does not apply within 
their respective jurisdictions.  
     Sec. 79.  Minnesota Statutes 1982, section 43A.08, 
subdivision 1, is amended to read:  
    Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
positions are held by employees who are: 
     (a) Chosen by election or appointed to fill an elective 
office; 
     (b) Heads of agencies required by law to be appointed by 
the governor or other elective officers, and the executive or 
administrative heads of departments, bureaus, divisions and 
institutions specifically established by law in the unclassified 
service; 
     (c) Deputy and assistant agency heads, and one confidential 
secretary in the agencies listed in subdivision 1a;  
     (d) The confidential secretary to each of the elective 
officers of this state and, for the secretary of state, state 
auditor, and state treasurer, an additional deputy, clerk, or 
employee; 
         (e) Intermittent help employed by the commissioner of 
public safety to assist in the issuance of vehicle licenses; 
         (f) Employees in the offices of the governor and of the 
lieutenant governor, and one confidential employee for the 
governor in the office of the adjutant general; 
         (g) Employees of the legislature and of legislative 
committees or commissions; provided that employees of the 
legislative audit commission, except for the legislative 
auditor, the deputy legislative auditors, and their confidential 
secretaries, shall be employees in the classified service; 
    (h) Presidents, vice presidents, deans, other managers and 
professionals in academic and academic support programs, 
administrative or service faculty, teachers, research assistants 
and student employees eligible under terms of the federal 
economic opportunity act work study program in the state 
universities and community colleges.  This paragraph shall not 
be construed to include the custodial, clerical or maintenance 
employees, or any professional or managerial employee performing 
duties in connection with the business administration of these 
institutions. 
    (i) Officers and enlisted persons in the national guard; 
    (j) Attorneys, legal assistants, examiners, and three 
confidential employees appointed by the attorney general or 
employed with his authorization; 
    (k) Judges and all employees of the judicial branch, 
referees, receivers, jurors, and notaries public, except 
referees and adjusters employed by the department of labor and 
industry; 
    (l) Members of the state patrol; provided that selection 
and appointment of state patrol troopers shall be made in 
accordance with applicable laws governing the classified service;
    (m) Seasonal help employed by the department of revenue; 
    (n) Employees of the department of administration 
permanently assigned to the ceremonial house;  
    (o) Chaplains employed by the state; 
    (p) (o) Examination monitors and intermittent training 
instructors employed by the departments of employee relations 
and commerce; 
    (q) (p) Student workers; and 
    (r) (q) Employees unclassified pursuant to other statutory 
authority. 
     Sec. 80.  Minnesota Statutes 1983 Supplement, section 
43A.10, subdivision 8, is amended to read:  
    Subd. 8.  [ELIGIBILITY FOR QUALIFIED HANDICAPPED 
EXAMINATIONS.] The commissioner shall establish examination 
procedures for candidates whose handicaps are of such a severe 
nature that the candidates are unable to demonstrate their 
abilities in competitive examination processes.  The examination 
procedures shall consist of up to 700 hours on-the-job trial 
work experience which will be in lieu of a competitive 
examination and for which the employee disabled person will be 
paid or unpaid at the employee's his or her option.  This work 
experience shall be limited to candidates who are mentally 
retarded, have severe hearing or visual impairments, have 
mobility impairments requiring the use of a wheelchair, or have 
other impairments that comprise serious employment handicaps and 
who have been referred for employment to a specific suitable 
vacancy by a vocational rehabilitation, veterans administration, 
or services for the blind counselor have a physical or mental 
impairment for which there is no reasonable accommodation in the 
examination process.  Implementation of provisions of this 
subdivision shall not be deemed a violation of other provisions 
of Laws 1981, chapter 210 or chapter 363. 
     Sec. 81.  Minnesota Statutes 1983 Supplement, section 
43A.23, subdivision 1, is amended to read:  
    Subdivision 1.  [GENERAL.] The commissioner is authorized 
to request bids from carriers or to negotiate with carriers and 
to enter into contracts with carriers which in the judgment of 
the commissioner are best qualified to underwrite and service 
the benefit plans.  The commissioner may negotiate premium rates 
and coverage provisions with all carriers licensed under 
chapters 62A, 62C, and 62D.  The commissioner may also negotiate 
reasonable restrictions to be applied to all carriers under 
chapters 62A, 62C, and 62D.  Contracts to underwrite the benefit 
plans shall be bid or negotiated separately from contracts to 
service the benefit plans, which shall be awarded only on the 
basis of competitive bids.  The commissioner shall consider the 
cost of the plans, conversion options relating to the contracts, 
service capabilities, character, financial position, and 
reputation of the carriers and any other factors which the 
commissioner deems appropriate.  Each benefit contract shall be 
for a uniform term of at least one year, but may be made 
automatically renewable from term to term in the absence of 
notice of termination by either party.  The commissioner shall, 
to the extent feasible, make hospital and medical benefits 
available from at least one carrier licensed to do business 
pursuant to each of chapters 62A, 62C and 62D.  The commissioner 
need not provide health maintenance organization services to an 
employee who resides in an area which is not served by a 
licensed health maintenance organization.  The commissioner may 
refuse to allow a health maintenance organization to continue as 
a carrier if it was selected by less than 200 employees in the 
preceding benefit year.  The commissioner may elect not to offer 
all three types of carriers if there are no bids or no 
acceptable bids by that type of carrier or if the offering of 
additional carriers would result in substantial additional 
administrative costs.  Any carrier licensed pursuant to chapter 
62A shall be exempt from the tax imposed by section 60A.15 on 
premiums paid to it by the state. 
     Sec. 82.  Minnesota Statutes 1982, section 43A.33, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DISCHARGE, SUSPENSION, DEMOTION FOR CAUSE, 
SALARY DECREASE.] Managers and employees shall attempt to 
resolve disputes through informal means prior to the initiation 
of disciplinary action.  No permanent employee in the classified 
service shall be reprimanded, discharged, suspended without pay, 
or reduced in pay or position demoted, except for just cause. 
     Sec. 83.  Minnesota Statutes 1982, section 43A.33, 
subdivision 3, is amended to read:  
    Subd. 3.  [PROCEDURES.] Procedures for discipline and 
discharge of employees covered by collective bargaining 
agreements shall be governed by the agreements.  Procedures for 
employees not covered by a collective bargaining agreement shall 
be governed by this subdivision and by the commissioner's and 
managerial plans.  
    (a) For discharge, suspension without pay or reduction in 
pay or position demotion, no later than the effective date of 
such action, a permanent classified employee not covered by a 
collective bargaining agreement shall be given written notice by 
the appointing authority.  The written notice shall include a 
statement of the nature of the disciplinary action, the specific 
reasons for the action, the effective date of the action and a 
statement informing the employee of the employee's right to 
reply within five working days of following the receipt of the 
notice in writing or, upon request, in person, to the appointing 
authority or the authority's designee.  The appointing authority 
shall respond within ten working days following receipt of the 
employee's reply or of the personal meeting.  If the employee 
receives a negative reply or no reply from the appointing 
authority, the employee shall have 30 calendar days following 
the expiration of the ten working day response period to appeal 
the action to the office of administrative hearings.  The notice 
shall also include a statement that the employee may elect to 
appeal the action to the office of administrative hearings 
within 30 calendar days of following the effective date of the 
disciplinary action; provided, that an employee who elects to 
reply to the appointing authority may appeal to the office 
within ten working days of the receipt of the authority's 
response to the reply.  If the appointing authority has not 
responded within 30 days of the authority's receipt of the 
employee's reply, the appointing authority shall be deemed to 
have replied unfavorably to the employee.  A copy of the notice 
and the employee's reply, if any, shall be filed by the 
appointing authority with the commissioner no later than ten 
calendar days following the effective date of the disciplinary 
action.  The commissioner shall have final authority to decide 
whether the appointing authority shall settle the dispute prior 
to the hearing provided under subdivision 4. 
    (b) For discharge, suspension or reduction in pay or 
position demotion of an employee serving an initial probationary 
period, and for noncertification in any subsequent probationary 
period, grievance procedures shall be as provided in the plan 
established pursuant to section 43A.18. 
    (c) Any permanent employee who is covered by a collective 
bargaining agreement may elect to appeal to the chief hearing 
examiner within 30 days after following the effective date of 
the discharge, suspension or reduction in pay or position 
demotion if the collective bargaining agreement provides that 
option.  In no event may an employee use both the procedure 
under this section and the grievance procedure available 
pursuant to sections 179.61 to 179.76.  
     Sec. 84.  Minnesota Statutes 1983 Supplement, section 
116L.03, subdivision 6, is amended to read:  
    Subd. 6.  [STAFF.] The board may hire an executive director 
who shall serve in the unclassified service who shall manage the 
partnership subject to the board's direction.  The director may 
employ a small staff as necessary to carry out the board's 
policies.  
    Sec. 85.  Minnesota Statutes 1983 Supplement, section 
176.011, subdivision 9, is amended to read: 
    Subd. 9.  [EMPLOYEE.] "Employee" means any person who 
performs services for another for hire including the following: 
    (1) an alien; 
    (2) a minor; 
    (3) a sheriff, deputy sheriff, constable, marshal, 
policeman, firefighter, county highway engineer, and peace 
officer while engaged in the enforcement of peace or in the 
pursuit or capture of any person charged with or suspected of 
crime and any person requested or commanded to aid an officer in 
arresting any person, or in retaking any person who has escaped 
from lawful custody, or in executing any legal process in which 
case, for purposes of calculating compensation payable under 
this chapter, the daily wage of the person requested or 
commanded to assist an officer or to execute a legal process 
shall be the prevailing wage for similar services where the 
services are performed by paid employees; 
    (4) a county assessor; 
    (5) an elected or appointed official of the state, or of 
any county, city, town, school district or governmental 
subdivision in it.  An officer of a political subdivision 
elected or appointed for a regular term of office, or to 
complete the unexpired portion of a regular term, shall be 
included only after the governing body of the political 
subdivision has adopted an ordinance or resolution to that 
effect; 
     (6) an executive officer of a corporation, except an 
officer of a family farm corporation as defined in section 
500.24, subdivision 1, clause (c), or an executive officer of a 
closely held corporation who is referred to in section 176.012; 
     (7) a voluntary uncompensated worker, other than an inmate, 
rendering services in state institutions under the commissioner 
of public welfare and state institutions under the commissioner 
of corrections similar to those of officers and employees of 
these institutions, and whose services have been accepted or 
contracted for by the commissioner of public welfare or the 
commissioner of corrections as authorized by law, shall be 
employees.  In the event of injury or death of the voluntary 
uncompensated worker, the daily wage of the worker, for the 
purpose of calculating compensation payable under this chapter, 
shall be the usual going wage paid at the time of the injury or 
death for similar services in institutions where the services 
are performed by paid employees; 
     (8) a voluntary uncompensated worker engaged in peace time 
in the civil defense program when ordered to training or other 
duty by the state or any political subdivision of it, shall be 
an employee.  The daily wage of the worker for the purpose of 
calculating compensation payable under this chapter, shall be 
the usual going wage paid at the time of the injury or death for 
similar services where the services are performed by paid 
employees; 
     (9) a voluntary uncompensated worker participating in a 
program established by a county welfare board shall be an 
employee.  In the event of injury or death of the voluntary 
uncompensated worker, the wage of the worker, for the purpose of 
calculating compensation payable under this chapter, shall be 
the usual going wage paid in the county at the time of the 
injury or death for similar services where the services are 
performed by paid employees working a normal day and week; 
     (10) a voluntary uncompensated worker accepted by the 
commissioner of natural resources who is rendering services as a 
volunteer pursuant to section 84.089 shall be an employee.  The 
daily wage of the worker for the purpose of calculating 
compensation payable under this chapter, shall be the usual 
going wage paid at the time of injury or death for similar 
services where the services are performed by paid employees; 
     (11) a member of the military forces, as defined in section 
190.05, while in state active service, as defined in section 
190.05, subdivision 5a.  The daily wage of the member for the 
purpose of calculating compensation payable under this chapter 
shall be based on the member's usual earnings in civil life.  If 
there is no evidence of previous occupation or earning, the 
trier of fact shall consider the member's earnings as a member 
of the military forces; 
     (12) a voluntary uncompensated worker, accepted by the 
director of the Minnesota historical society, rendering services 
as a volunteer, pursuant to chapter 138, shall be an employee.  
The daily wage of the worker, for the purposes of calculating 
compensation payable under this chapter, shall be the usual 
going wage paid at the time of injury or death for similar 
services where the services are performed by paid employees; 
     (13) a voluntary uncompensated worker, other than a 
student, who renders services at the Minnesota School for the 
Deaf or the Minnesota Braille and Sight-Saving School, and whose 
services have been accepted or contracted for by the state board 
of education, as authorized by law, shall be an employee.  In 
the event of injury or death of the voluntary uncompensated 
worker, the daily wage of the worker, for the purpose of 
calculating compensation payable under this chapter, shall be 
the usual going wage paid at the time of the injury or death for 
similar services in institutions where the services are 
performed by paid employees; 
     (14) a voluntary uncompensated worker, other than a 
resident of the veterans home, who renders services at a 
Minnesota veterans home, and whose services have been accepted 
or contracted for by the commissioner of veterans affairs, as 
authorized by law, is an employee.  In the event of injury or 
death of the voluntary uncompensated worker, the daily wage of 
the worker, for the purpose of calculating compensation payable 
under this chapter, shall be the usual going wage paid at the 
time of the injury or death for similar services in institutions 
where the services are performed by paid employees;  
     (15) a worker who renders in-home attendant care services 
to a physically handicapped person, and who is paid directly by 
the commissioner of public welfare for these services, shall be 
an employee of the state within the meaning of this subdivision, 
but for no other purpose; and 
     (16) those students enrolled in and regularly attending the 
medical school of the University of Minnesota, whether in the 
graduate school program or the post-graduate program, as 
provided in section 147.20, notwithstanding that the students 
shall not be considered employees for any other purpose.  In the 
event of the student's injury or death, the weekly wage of the 
student for the purpose of calculating compensation payable 
under chapter 176, shall be the annualized educational stipend 
awarded to the student, divided by 52 weeks.  The institution in 
which the student is enrolled shall be considered the "employer" 
for the limited purpose of determining responsibility for paying 
benefits payable under chapter 176; and 
    (17) a voluntary uncompensated worker, accepted by the 
commissioner of administration, rendering services as a 
volunteer at the department of administration.  In the event of 
injury or death of the voluntary uncompensated worker, the daily 
wage of the worker, for the purpose of calculating compensation 
payable under this chapter, shall be the usual going wage paid 
at the time of the injury or death for similar services in 
institutions where the services were performed by paid employees.
    In the event it is difficult to determine the daily wage as 
provided in this subdivision, then the trier of fact may 
determine the wage upon which the compensation is payable. 
    Sec. 86.  [611.216] [CRIMINAL AND JUVENILE DEFENSE GRANTS.] 
    Subdivision 1.  [ELIGIBLE RECIPIENTS.] Money appropriated 
to provide criminal and juvenile defense to indigent individuals 
must be distributed by the board of public defense to the 
nonprofit criminal and juvenile defense corporations designated 
by law.  Money may not be disbursed to a corporation in the 
Leech Lake reservation area or the White Earth reservation area 
without prior approval by the respective reservation business 
committee.  Within its geographic area of responsibility each 
corporation shall accept cases involving felony, gross 
misdemeanor, and misdemeanor charges and juvenile cases if 
financial eligibility standards are met, unless there is a legal 
reason for rejecting a case.  A corporation may accept cases 
arising outside its geographic area of responsibility, as 
appropriate.  Each corporation, in order to ensure broad 
support, shall provide matching money received from nonstate 
sources, which may include money from federal agencies, local 
governments, private agencies, and community groups, equal to 
ten percent of its state appropriation.  The board of public 
defense shall give notice 30 days in advance and conduct a 
hearing if it has reasonable grounds to believe money 
appropriated for this purpose is being improperly used, or if it 
has reasonable cause to believe criminal and juvenile defense of 
proper quality is not being supplied.  Payment must cease from 
the date of notice until either the board of public defense 
determines that the money appropriated will be properly handled, 
or the board of public defense determines that criminal and 
juvenile defense of proper quality will be provided.  A 
participating corporation may give notice at any time of its 
withdrawal from this program of financial assistance.  
    Subd. 2.  [DISCRIMINATION; PENALTY.] An employee, 
administrator, or officer of a recipient of the money provided 
by this section who discriminates on the basis of sex, race, 
color, national origin, religion, or creed is guilty of a gross 
misdemeanor.  
    Subd. 3.  [REPORT.] Each corporation shall submit to the 
board of public defense twice each year a report on a form 
supplied by the council showing the number of clients served, 
the number of charges brought, the number of cases of each kind, 
such as felonies, gross misdemeanors, misdemeanors, and juvenile 
delinquencies, the number of dispositions of each kind, such as 
jury trials, court trials, plea bargains, and dismissals, and 
the number of court appearances.  This information must be 
summarized for each corporation in the budget documents 
submitted to the legislature.  
    Sec. 87.  Minnesota Statutes 1982, section 645.445, 
subdivision 5, is amended to read: 
    Subd. 5.  "Socially or economically disadvantaged person" 
means a person who has been deprived of the opportunity to 
develop and maintain a competitive position in the economy 
because of social or economic conditions.  This disadvantage may 
arise from cultural, social or economic circumstances, or 
background, physical location if the person resides or is 
employed in an area designated a labor surplus area by the 
United States department of commerce labor, or other similar 
cause.  It includes racial minorities, women, or persons who 
have suffered a substantial physical disability. 
    Sec. 88.  [RELATION TO OTHER ENACTMENTS.] 
    This act recodifies the laws in Minnesota Statutes 1982 and 
1983 Supplement, chapter 16.  If S.F. No. 2153, H.F. No. 1939, 
or the equivalent, is enacted by the 1984 legislature, that 
enactment shall prevail over sections 15, 16, and 17 of this act.
    If S.F. No. 2153, H.F. No. 1939, or the equivalent, is not 
enacted by the 1984 legislature, sections 15, 16, and 17 of this 
act shall prevail.  
    Sec. 89.  [INSTRUCTIONS TO REVISOR.] 
    In the following sections of Minnesota Statutes, the 
revisor of statutes shall change the reference to chapter 16 
listed in column B which occurs in the section specified in 
column A to the new reference listed in column C.  
 
COLUMN A, Section       COLUMN B, Section       COLUMN C, Section
13.43, subd. 7          16.02, subd. 28         16B.39, subd. 2 
14.56                   16.125                  16B.37 
15.44                   16.84, subd. 8          16B.60, subd. 7
15.061                  16.098                  16B.17 
15.18                   16.02                   chapter 16B 
16A.131                 16.72, subd. 7          16B.58, subd. 7 
16A.15                  16.07, subd. 1          16B.07, subd. 2 
16A.72                  16.78                   16B.57 
85A.03, subd. 4         16.06 and 16.07         16B.07 
                        and 16.28 
105.41, subd. 5         16.011                  16B.01 
105.44, subd. 10        16.011                  16B.01 
116J.06, subd. 2        16.85                   16B.61 
116J.19, subd. 8        16.862                  16B.66 
120.81, subd. 1         16.90                   16B.40 
120.81, subd. 1         16.94                   16B.44 
123.73                  16.93                   chapter 16B 
136A.29, subd. 6        16.07                   chapter 16B 
144.0742                16.098                  chapter 16B 
161.321, subd. 4        16.083, subds.          16B.19, subds.
                        2, 3, and 6             2, 3, and 6
179.7411                16.07                   16B.07, subd. 1 
268.12, subd. 8         16.02                   16B.50 
299F.011, subd. 4       16.83 to 16.867         16B.59 to 16B.73
299F.015, subd. 2       16.83 to 16.867         16B.59 t0 16B.73
299F.391, subd. 3       16.83 to 16.867         16B.59 to 16B.73
326.243                 Minnesota Statutes      16B.61 
                        1965, section 16.85 
327.32, subd. 7         16.83 to 16.867         16B.59 to 16B.73
471.616, subd. 1        Minnesota Statutes      16B.07, 
                        1971, section 16.07,    subds. 1 to 5 
                        subds. 1, 2, 4, and 5
473.556, subd. 14       16.081 to 16.084        16B.19 to 16B.22
480.09, subd. 1         16.02                   chapter 16B
    Sec. 90.  [REPEALER.] 
    Minnesota Statutes 1982, sections 16.01; 16.011; 16.012; 
16.014; 16.02, subdivisions 1, 2, 2a, 3, 4, 5, 5a, 6, 6a, 6b, 7, 
8, 9, 10, 13, 15, 16, 17, 18, 19, 24, 25, 26, and 27; 16.021; 
16.022; 16.023; 16.0231; 16.024; 16.025; 16.026; 16.028; 16.03; 
16.04; 16.05; 16.06; 16.061; 16.062; 16.063; 16.064; 16.065; 
16.066; 16.068; 16.07; 16.073; 16.075; 16.08; 16.081; 16.082; 
16.083, subdivision 2; 16.086, subdivision 2; 16.09; 16.095; 
16.096; 16.098, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 11; 
16.12; 16.125; 16.135; 16.139; 16.172; 16.21; 16.22; 16.23; 
16.24; 16.243; 16.244; 16.251; 16.281; 16.32, subdivisions 1, 3, 
and 4; 16.34; 16.365; 16.381; 16.51; 16.52; 16.53; 16.54; 16.55; 
16.56; 16.71; 16.72; 16.723; 16.73; 16.75, subdivisions 1, 2, 3, 
4, 5, 6, and 8; 16.753, subdivisions 1, 2, 4, 5, and 6; 16.756; 
16.76; 16.77; 16.78; 16.80; 16.81; 16.811; 16.82, subdivision 2; 
16.821; 16.822; 16.823; 16.824; 16.825; 16.826; 16.827; 16.83; 
16.84; 16.85; 16.851, subdivisions 1 and 2; 16.854; 16.86; 
16.861, subdivisions 1, 2, 4, 5, 6, and 7; 16.862; 16.8632; 
16.864; 16.865; 16.866, subdivision 2; 16.867; 16.868; 16.869; 
16.871; 16.872, subdivisions 1, 2, and 3; 16.874; 16.88; 16.89; 
16.90, subdivisions 1, 2, and 3; 16.931; 16.94; 16.95; 16.955; 
16.96; and 16.97; and Minnesota Statutes 1983 Supplement, 
sections 16.02, subdivisions 10a, 14, 28, and 29; 16.072; 
16.0721; 16.083, subdivisions 1, 1a, 3, 4, 4a, 4b, 5 and 6; 
16.084; 16.085; 16.086, subdivision 1; 16.092; 16.098, 
subdivision 4; 16.28; 16.32, subdivision 2; 16.321; 16.75, 
subdivisions 7 and 9; 16.753, subdivision 3; 16.82, subdivision 
1; 16.851, subdivision 3; 16.861, subdivision 3; 16.863; 16.866, 
subdivision 1; 16.872; 16.90, subdivision 4; 16.91; and 16.911; 
are repealed. 
    Approved April 25, 1984

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569