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2003 Minnesota Session Laws

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                              CHAPTER 8-S.F.No. 10 
                  An act relating to state government; updating 
                  references; increasing the threshold project amount 
                  for designer selection board approval; modifying 
                  building code language; modifying state procurement 
                  provisions; eliminating a report; regulating data 
                  practices; providing for the classification and 
                  dissemination of certain data; providing for public 
                  access; authorizing the commissioner of administration 
                  to render opinions in certain circumstances; amending 
                  Minnesota Statutes 2002, sections 13.072, subdivisions 
                  1, 2; 13.08, subdivision 4; 13.32, by adding a 
                  subdivision; 13.37, subdivision 3; 13.43, subdivision 
                  1; 13.643, by adding a subdivision; 13.746, 
                  subdivision 3; 13.785, subdivision 2; 16B.054; 16B.24, 
                  subdivisions 1, 5; 16B.33, subdivision 3; 16B.61, 
                  subdivision 1a; 16B.62, subdivision 1; 16C.06, by 
                  adding a subdivision; 16C.08, subdivision 4; 16C.10, 
                  subdivisions 5, 7; 16C.15; 16C.16, subdivision 7; 
                  196.08; 268.19, by adding a subdivision; 307.08, by 
                  adding a subdivision; 327A.01, subdivision 2; 349A.08, 
                  subdivision 9; 386.20, subdivision 1; proposing coding 
                  for new law in Minnesota Statutes, chapters 13; 16C; 
                  repealing Minnesota Statutes 2002, sections 13.6401, 
                  subdivision 4; 16C.18, subdivision 1; 270B.03, 
                  subdivision 8; Laws 2001, First Special Session 
                  chapter 10, article 2, section 40. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                          DEPARTMENT OF ADMINISTRATION
           Section 1.  Minnesota Statutes 2002, section 16B.054, is 
        amended to read: 
           16B.054 [DEVELOPMENTAL DISABILITIES.] 
           The department of administration is designated as the 
        responsible agency to assist the Minnesota governor's council on 
        developmental disabilities in carrying out all responsibilities 
        under United States Code, title 42, section 6021 et seq. the 
        Developmental Disabilities Assistance and Bill of Rights Act of 
        2000, also known as United States Code, title 42, sections 15001 
        to 15115, and Public Law 106-402 (October 30, 2000, 106th 
        Congress), as well as those responsibilities relating to the 
        program which are not delegated to the council. 
           Sec. 2.  Minnesota Statutes 2002, section 16B.24, 
        subdivision 1, is amended to read: 
           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 under section 15.50, subdivision 2, clause (j), and 
        all other buildings, cafeterias, and grounds in state-owned 
        buildings in the capitol area under section 15.50, subdivision 
        2, clause (a), the state department of public safety, bureau of 
        criminal apprehension building in St. Paul, the state department 
        of health building in Minneapolis, the Duluth government 
        services center in Duluth, 321 Grove Street buildings in St. 
        Paul, any other properties acquired by the department of 
        administration, 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 commissioner shall 
        regularly update the long-range strategic plan for locating 
        agencies and shall follow the plan in assigning and reassigning 
        space to agencies.  The plan must include locational and urban 
        design criteria, a cost-analysis method to be used in weighing 
        state ownership against leasing of space in specific instances, 
        and a transportation management plan.  If the commissioner 
        determines that a deviation from the plan is necessary or 
        desirable in a specific instance, the commissioner shall provide 
        the legislature with a timely written explanation of the reasons 
        for the deviation.  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.  
           Sec. 3.  Minnesota Statutes 2002, section 16B.24, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RENTING OUT STATE PROPERTY.] (a)  [AUTHORITY.] 
        The commissioner may rent out state property, real or personal, 
        that is not needed for public use, if the rental is not 
        otherwise provided for or prohibited by law.  The property may 
        not be rented out for more than five years at a time without the 
        approval of the state executive council and may never be rented 
        out for more than 25 years.  A rental agreement may provide that 
        the state will reimburse a tenant for a portion of capital 
        improvements that the tenant makes to state real property if the 
        state does not permit the tenant to renew the lease at the end 
        of the rental agreement. 
           (b)  [RESTRICTIONS.] Paragraph (a) does not apply to state 
        trust fund lands, other state lands under the jurisdiction of 
        the department of natural resources, lands forfeited for 
        delinquent taxes, lands acquired under section 298.22, or lands 
        acquired under section 41.56 which are under the jurisdiction of 
        the department of agriculture.  
           (c)  [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
        Chapel, located within the boundaries of Fort Snelling State 
        Park, is available for use only on payment of a rental fee.  The 
        commissioner shall establish rental fees for both public and 
        private use.  The rental fee for private use by an organization 
        or individual must reflect the reasonable value of equivalent 
        rental space.  Rental fees collected under this section must be 
        deposited in the general fund.  
           (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
        shall establish rental rates for all living accommodations 
        provided by the state for its employees.  Money collected as 
        rent by state agencies pursuant to this paragraph must be 
        deposited in the state treasury and credited to the general fund.
           (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
        AGENCIES.] The commissioner may lease portions of the 
        state-owned buildings in the capitol complex, the capitol square 
        building, the health building, the Duluth government center, and 
        the building at 1246 University Avenue, St. Paul, Minnesota, to 
        state agencies and the court administrator on behalf of the 
        judicial branch of state government and charge rent on the basis 
        of space occupied.  Notwithstanding any law to the contrary, all 
        money collected as rent pursuant to the terms of this section 
        shall be deposited in the state treasury.  Money collected as 
        rent to recover the bond interest costs of a building funded 
        from the state bond proceeds fund shall be credited to the 
        general fund.  Money collected as rent to recover the 
        depreciation costs of a building funded from the state bond 
        proceeds fund and money collected as rent to recover capital 
        expenditures from capital asset preservation and replacement 
        appropriations and statewide building access appropriations 
        shall be credited to a segregated account in a special revenue 
        fund.  Money in the account is appropriated to the commissioner 
        to be expended for asset preservation projects as determined by 
        the commissioner.  Money collected as rent to recover the 
        depreciation and interest costs of a building built with other 
        state dedicated funds shall be credited to the dedicated fund 
        which funded the original acquisition or construction.  All 
        other money received shall be credited to the general services 
        revolving fund. 
           Sec. 4.  Minnesota Statutes 2002, section 16B.33, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AGENCIES MUST REQUEST DESIGNER.] (a) 
        [APPLICATION.] Upon undertaking a project with an estimated cost 
        greater than $750,000 $2,000,000 or a planning project with 
        estimated fees greater than $60,000 $200,000, 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 University of Minnesota and the Minnesota state 
        colleges and universities shall follow the process in 
        subdivision 3a to select designers for their projects.  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, the 
        Minnesota state colleges and universities, 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. 
           Sec. 5.  Minnesota Statutes 2002, section 16B.61, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [ADMINISTRATION BY COMMISSIONER.] The 
        commissioner shall administer and enforce the State Building 
        Code as a municipality with respect to public buildings and 
        state licensed facilities in the state.  The commissioner shall 
        establish appropriate permit, plan review, and inspection fees 
        for public buildings and state licensed facilities.  Fees and 
        surcharges for public buildings and state licensed facilities 
        must be remitted to the commissioner, who shall deposit them in 
        the state treasury for credit to the special revenue fund. 
           Municipalities other than the state having a contractual an 
        agreement with the commissioner for code administration and 
        enforcement service for public buildings and state licensed 
        facilities shall charge their customary fees, including 
        surcharge, to be paid directly to the contractual jurisdiction 
        by the applicant seeking authorization to construct a public 
        building or a state licensed facility.  The commissioner shall 
        contract sign an agreement with a municipality other than the 
        state for plan review, code administration, and code enforcement 
        service for public buildings and state licensed facilities in 
        the contractual jurisdiction if the building officials of the 
        municipality meet the requirements of section 16B.65 and wish to 
        provide those services and if the commissioner determines that 
        the municipality has enough adequately trained and qualified 
        building inspectors to provide those services for the 
        construction project. 
           The commissioner may direct the state building official to 
        assist a community that has been affected by a natural disaster 
        with building evaluation and other activities related to 
        building codes. 
           Administration and enforcement in a municipality under this 
        section must apply any optional provisions of the State Building 
        Code adopted by the municipality.  A municipality adopting any 
        optional code provision shall notify the state building official 
        within 30 days of its adoption. 
           The commissioner shall administer and enforce the 
        provisions of the code relating to elevators statewide, except 
        as provided for under section 16B.747, subdivision 3. 
           Sec. 6.  Minnesota Statutes 2002, section 16B.62, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The State Building 
        Code applies statewide and supersedes the building code of any 
        municipality.  A municipality must not by ordinance or through 
        development agreement require building code provisions 
        regulating components or systems of any residential structure 
        that are different from any provision of the State Building 
        Code.  A municipality may, with the approval of the state 
        building official, adopt an ordinance that is more restrictive 
        than the State Building Code where geological conditions warrant 
        a more restrictive ordinance.  A municipality may appeal the 
        disapproval of a more restrictive ordinance to the 
        commissioner.  An appeal under this subdivision is subject to 
        the schedule, fee, procedures, cost provisions, and appeal 
        rights set out in section 16B.67.  The State Building Code does 
        not apply to agricultural buildings except with respect to state 
        inspections required or rulemaking authorized by sections 
        103F.141, 216C.19, subdivision 8, and 326.244.  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 and with permission of the 
        township board extend the enforcement of the code to contiguous 
        unincorporated territory not more than two miles distant from 
        its corporate limits in any direction if the code is not in 
        effect in the territory.  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.  
           Enforcement of the code in an extended area outside a 
        city's corporate limits includes all rules, laws, and ordinances 
        associated with administration of the code. 
           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 outside of its jurisdiction 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.  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.  Nothing in this section prohibits a municipality 
        from adopting ordinances relating to zoning, subdivision, or 
        planning unless the ordinance conflicts with a provision of the 
        State Building Code that regulates components or systems of any 
        residential structure. 
           Sec. 7.  Minnesota Statutes 2002, section 16C.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REPORTS.] (a) The commissioner shall submit to 
        the governor, the chairs of the house ways and means and senate 
        finance committees, and the legislative reference library a 
        yearly listing of all contracts for professional or technical 
        services executed.  The report must identify the contractor, 
        contract amount, duration, and services to be provided.  The 
        commissioner shall also issue yearly reports summarizing the 
        contract review activities of the department by fiscal year. 
           (b) The fiscal year report must be submitted by September 1 
        of each year and must: 
           (1) be sorted by agency and by contractor; 
           (2) show the aggregate value of contracts issued by each 
        agency and issued to each contractor; 
           (3) distinguish between contracts that are being issued for 
        the first time and contracts that are being extended; 
           (4) state the termination date of each contract; and 
           (5) identify services by commodity code, including topics 
        such as contracts for training, contracts for research and 
        opinions, and contracts for computer systems; and 
           (6) identify which contracts were awarded without following 
        the solicitation process in this chapter because it was 
        determined that there was only a single source for the services. 
           (c) Within 30 days of final completion of a contract over 
        $40,000 covered by this subdivision, the head of the agency 
        entering into the contract must submit a one-page report to the 
        commissioner who must submit a copy to the legislative reference 
        library.  The report must:  
           (1) summarize the purpose of the contract, including why it 
        was necessary to enter into a contract; 
           (2) state the amount spent on the contract; and 
           (3) explain why this amount was a cost-effective way to 
        enable the agency to provide its services or products better or 
        more efficiently; and 
           (4) if the contract was awarded without following the 
        solicitation process in this chapter because it was determined 
        that there was only a single source for the services, explain 
        why the agency determined there was only a single source for the 
        services. 
           Sec. 8.  Minnesota Statutes 2002, section 16C.10, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SPECIFIC PURCHASES.] The solicitation process 
        described in this chapter is not required for acquisition of the 
        following: 
           (1) merchandise for resale purchased under policies 
        determined by the commissioner; 
           (2) farm and garden products which, as determined by the 
        commissioner, may be purchased at the prevailing market price on 
        the date of sale; 
           (3) goods and services from the Minnesota correctional 
        facilities; 
           (4) goods and services from rehabilitation facilities and 
        sheltered workshops extended employment providers that are 
        certified by the commissioner of economic security; 
           (5) goods and services for use by a community-based 
        facility operated by the commissioner of human services; 
           (6) goods purchased at auction or when submitting a sealed 
        bid at auction provided that before authorizing such an action, 
        the commissioner consult with the requesting agency to determine 
        a fair and reasonable value for the goods considering factors 
        including, but not limited to, costs associated with submitting 
        a bid, travel, transportation, and storage.  This fair and 
        reasonable value must represent the limit of the state's bid; 
        and 
           (7) utility services where no competition exists or where 
        rates are fixed by law or ordinance. 
           Sec. 9.  [16C.144] [GUARANTEED SAVINGS CONTRACTS.] 
           Subdivision 1.  [DEFINITIONS.] The following definitions 
        apply to this section.  
           (a) "Utility" means electricity, natural gas, or other 
        energy resource, water, and wastewater. 
           (b) "Utility cost-savings" means the difference between the 
        utility costs under the precontract conditions and the utility 
        costs after the changes have been made under the contract.  Such 
        savings shall be calculated in comparison to an established 
        baseline of utility costs. 
           (c) "Established baseline" means the precontract utilities, 
        operations, and maintenance costs.  
           (d) "Utility cost-savings measure" means a measure that 
        produces utility cost savings and/or operation and maintenance 
        cost savings.  
           (e) "Operation and maintenance cost savings" means a 
        measurable decrease in operation and maintenance costs that are 
        a direct result of the implementation of one or more utility 
        cost-savings measures but do not include savings from in-house 
        staff labor.  Such savings shall be calculated in comparison to 
        an established baseline of operation and maintenance costs. 
           (f) "Guaranteed savings contract" means a contract for the 
        evaluation, recommendation, and installation of one or more 
        utility cost-savings measures.  The contract must provide that 
        all payments are to be made over time but not to exceed ten 
        years from the date of final installation, and the savings are 
        guaranteed to the extent necessary to make payments for the 
        utility cost-savings measures.  
           (g) "Baseline adjustments" means adjusting the established 
        baselines in paragraphs (b) and (d) for changes in the following 
        variables: 
           (1) utility rates; 
           (2) number of days in the utility billing cycle; 
           (3) square footage of the facility; 
           (4) operational schedule of the facility; 
           (5) facility temperature set points; 
           (6) weather; and 
           (7) amount of equipment or lighting utilized in the 
        facility. 
           (h) "Lease purchase contract" means a contract obligating 
        the state to make regular lease payments to satisfy the lease 
        costs of the utility cost-savings measures until the final 
        payment, after which time the utility cost-savings measures 
        become the sole property of the state of Minnesota.  
           (i) "Qualified provider" means a person or business 
        experienced in the design, implementation, and installation of 
        utility cost-savings measures. 
           (j) "Engineering report" means a report prepared by a 
        professional engineer licensed by the state of Minnesota 
        summarizing estimates of all costs of installations, 
        modifications, or remodeling, including costs of design, 
        engineering, installation, maintenance, repairs, and estimates 
        of the amounts by which utility and operation and maintenance 
        costs will be reduced.  
           (k) "Capital cost avoidance" means money expended by a 
        state agency to pay for utility cost-savings measures with a 
        guaranteed savings contract so long as the measures that are 
        being implemented to achieve the cost-savings are a significant 
        portion of an overall project.  
           (l) "Guaranteed savings contracting guidelines" means 
        policies, procedures, and requirements of guaranteed savings 
        contracts established by the department of administration upon 
        enacting this legislation. 
           Subd. 2.  [GUARANTEED SAVINGS CONTRACT.] The commissioner 
        may enter into a guaranteed savings contract with a qualified 
        provider if: 
           (1) the qualified provider is selected through a 
        competitive process in accordance with the guaranteed savings 
        contracting guidelines within the department of administration; 
           (2) the qualified provider agrees to submit an engineering 
        report prior to the execution of the guaranteed savings 
        contract; 
           (3) the commissioner finds that the amount it would spend 
        on the utility cost-savings measures recommended in the 
        engineering report will not exceed the amount to be saved in 
        utility operation and maintenance costs over ten years from the 
        date of implementation of utility cost-savings measures; 
           (4) the qualified provider provides a written guarantee 
        that the utility, operation, and maintenance cost savings will 
        meet or exceed the costs of the guaranteed savings contract.  
        The qualified provider shall reimburse the state for any 
        shortfall of guaranteed utility cost-savings; and 
           (5) the qualified provider gives a sufficient bond in 
        accordance with section 574.26 to the commissioner for the 
        faithful implementation and installation of the utility 
        cost-savings measures.  
           Subd. 3.  [LEASE PURCHASE CONTRACT.] The commissioner may 
        enter into a lease purchase agreement with any party for the 
        implementation of utility cost-savings measures in accordance 
        with an engineering report.  The implementation costs of the 
        utility cost-savings measures recommended in the engineering 
        report shall not exceed the amount to be saved in utility and 
        operation and maintenance costs over the term of the lease 
        purchase agreement.  The term of the lease purchase agreement 
        shall not exceed ten years.  The lease is assignable in 
        accordance with terms approved by the commissioner of finance. 
           Subd. 4.  [USE OF CAPITAL COST AVOIDANCE.] The affected 
        state agency may contribute funds for capital cost avoidance for 
        guaranteed savings contracts.  Use of capital cost avoidance is 
        subject to the guaranteed savings contracting guidelines within 
        the department of administration. 
           Subd. 5.  [REPORT.] By January 15 of 2005 and 2007, the 
        commissioner of administration shall submit to the commissioner 
        of finance and the chairs of the senate and house of 
        representatives capital investment committees a list of projects 
        in the agency that have been funded using guaranteed energy 
        savings, as outlined in this section, during the preceding 
        biennium.  For each guaranteed savings contract entered into, 
        the commissioner of administration shall contract with an 
        independent third party to evaluate the cost-effectiveness of 
        each utility cost-savings measure implemented to ensure that 
        such measures were the least-cost measures available.  For the 
        purposes of this section, "independent third party" means an 
        entity not affiliated with the qualified provider; that is not 
        involved in creating or providing conservation project services 
        to that provider; and that has expertise (or access to 
        expertise) in energy savings practices.  
           Subd. 6.  [CONTRACT LIMITS.] Contracts may not be entered 
        into after June 30, 2007. 
           Sec. 10.  Minnesota Statutes 2002, section 16C.15, is 
        amended to read: 
           16C.15 [SHELTERED WORKSHOPS AND SERVICES WORK ACTIVITY 
        PROGRAMS REHABILITATION FACILITIES AND EXTENDED EMPLOYMENT 
        PROVIDERS.] 
           The commissioner, in consultation with the commissioner of 
        economic security, shall prepare a list containing products and 
        services of state-certified certified rehabilitation facilities, 
        sheltered workshops, and work activity programs and extended 
        employment providers as described in chapter 268A for 
        acquisition by state agencies and institutions. 
           Sec. 11.  Minnesota Statutes 2002, section 16C.16, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ECONOMICALLY DISADVANTAGED AREAS.] (a) Except as 
        otherwise provided in paragraph (b), the commissioner may award 
        up to a six percent preference in the amount bid on state 
        procurement to small businesses located in an economically 
        disadvantaged area.  
           (b) The commissioner may award up to a four percent 
        preference in the amount bid on state construction to small 
        businesses located in an economically disadvantaged area.  
           (c) A business is located in an economically disadvantaged 
        area if: 
           (1) the owner resides in or the business is located in a 
        county in which the median income for married couples is less 
        than 70 percent of the state median income for married couples; 
           (2) the owner resides in or the business is located in an 
        area designated a labor surplus area by the United States 
        Department of Labor; or 
           (3) the business is a certified rehabilitation facility or 
        work activity program extended employment provider as described 
        in chapter 268A. 
           (d) The commissioner may designate one or more areas 
        designated as targeted neighborhoods under section 469.202 or as 
        enterprise zones under section 469.167 as economically 
        disadvantaged areas for purposes of this subdivision if the 
        commissioner determines that this designation would further the 
        purposes of this section.  If the owner of a small business 
        resides or is employed in a designated area, the small business 
        is eligible for any preference provided under this subdivision. 
           (e) The department of revenue shall gather data necessary 
        to make the determinations required by paragraph (c), clause 
        (1), and shall annually certify counties that qualify under 
        paragraph (c), clause (1).  An area designated a labor surplus 
        area retains that status for 120 days after certified small 
        businesses in the area are notified of the termination of the 
        designation by the United States Department of Labor. 
           Sec. 12.  Minnesota Statutes 2002, section 327A.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BUILDING STANDARDS.] "Building standards" means 
        the materials and installation standards of the State Building 
        Code, adopted by the commissioner of administration pursuant to 
        sections 16B.59 to 16B.75, that is in effect at the time of the 
        construction or remodeling. 
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 2002, section 16C.18, subdivision 1, is 
        repealed. 
           Sec. 14.  [EFFECTIVE DATE.] 
           Section 9 is effective the day following final enactment. 

                                   ARTICLE 2
                                 DATA PRACTICES
           Section 1.  Minnesota Statutes 2002, section 13.072, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [OPINION; WHEN REQUIRED.] (a) Upon request 
        of a state agency, statewide system, or political 
        subdivision government entity, the commissioner may give a 
        written opinion on any question relating to public access to 
        government data, rights of subjects of data, or classification 
        of data under this chapter or other Minnesota statutes governing 
        government data practices.  Upon request of any person who 
        disagrees with a determination regarding data practices made by 
        a state agency, statewide system, or political 
        subdivision government entity, the commissioner may give a 
        written opinion regarding the person's rights as a subject of 
        government data or right to have access to government data.  
           (b) Upon request of a body subject to chapter 13D, the 
        commissioner may give a written opinion on any question relating 
        to the body's duties under chapter 13D.  Upon request of a 
        person who disagrees with the manner in which members of a 
        governing body perform their duties under chapter 13D, the 
        commissioner may give a written opinion on compliance with 
        chapter 13D.  A governing body or person requesting an opinion 
        under this paragraph must pay the commissioner a fee of $200.  
        Money received by the commissioner under this paragraph is 
        appropriated to the commissioner for the purposes of this 
        section.  
           (c) If the commissioner determines that no opinion will be 
        issued, the commissioner shall give the state agency, statewide 
        system, political subdivision, government entity or body subject 
        to chapter 13D or person requesting the opinion notice of the 
        decision not to issue the opinion within five days of receipt of 
        the request.  If this notice is not given, the commissioner 
        shall issue an opinion within 20 days of receipt of the request. 
           (d) For good cause and upon written notice to the person 
        requesting the opinion, the commissioner may extend this 
        deadline for one additional 30-day period.  The notice must 
        state the reason for extending the deadline.  The state agency, 
        statewide system, government entity or political subdivision the 
        members of a body subject to chapter 13D must be provided a 
        reasonable opportunity to explain the reasons for its decision 
        regarding the data or how they perform their duties under 
        chapter 13D.  The commissioner or the state agency, statewide 
        system, government entity or political subdivision body subject 
        to chapter 13D may choose to give notice to the subject of the 
        data concerning the dispute regarding the data or compliance 
        with chapter 13D. 
           (b) (e) This section does not apply to a determination made 
        by the commissioner of health under section 13.3805, subdivision 
        1, paragraph (b), or 144.6581. 
           (c) (f) A written opinion issued by the attorney general 
        shall take precedence over an opinion issued by the commissioner 
        under this section. 
           Sec. 2.  Minnesota Statutes 2002, section 13.072, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EFFECT.] Opinions issued by the commissioner 
        under this section are not binding on the state agency, 
        statewide system, government entity or political subdivision 
        members of a body subject to chapter 13D whose data or 
        performance of duties is the subject of the opinion, but an 
        opinion described in subdivision 1, paragraph (a), must be given 
        deference by a court in a proceeding involving the data.  The 
        commissioner shall arrange for public dissemination of opinions 
        issued under this section.  This section does not preclude a 
        person from bringing any other action under this chapter or 
        other law in addition to or instead of requesting a written 
        opinion.  A government entity, members of a body subject to 
        chapter 13D, or person that acts in conformity with a written 
        opinion of the commissioner issued to the government entity, 
        members, or person or to another party is not liable for 
        compensatory or exemplary damages or awards of attorneys fees in 
        actions under section 13.08 or for a penalty under section 13.09 
        or for fines, awards of attorney fees, or any other penalty 
        under chapter 13D.  A member of a body subject to chapter 13D is 
        not subject to forfeiture of office if the member was acting in 
        reliance on an opinion. 
           Sec. 3.  Minnesota Statutes 2002, section 13.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ACTION TO COMPEL COMPLIANCE.] (a) In addition to 
        the remedies provided in subdivisions 1 to 3 or any other law, 
        any aggrieved person seeking to enforce the person's rights 
        under this chapter or obtain access to data may bring an action 
        in district court to compel compliance with this chapter and may 
        recover costs and disbursements, including reasonable attorney's 
        fees, as determined by the court.  If the court determines that 
        an action brought under this subdivision is frivolous and 
        without merit and a basis in fact, it may award reasonable costs 
        and attorney fees to the responsible authority.  If the court 
        issues an order to compel compliance under this subdivision, the 
        court may impose a civil penalty of up to $300 against the 
        government entity.  This penalty is payable to the state general 
        fund and is in addition to damages under subdivision 1.  The 
        matter shall be heard as soon as possible.  In an action 
        involving a request for government data under section 13.03 or 
        13.04, the court may inspect in camera the government data in 
        dispute, but shall conduct its hearing in public and in a manner 
        that protects the security of data classified as not public.  If 
        the court issues an order to compel compliance under this 
        subdivision, the court shall forward a copy of the order to the 
        commissioner of administration. 
           (b) In determining whether to assess a civil penalty under 
        this subdivision, the court shall consider whether the 
        government entity has substantially complied with general data 
        practices under this chapter, including but not limited to, 
        whether the government entity has:  
           (1) designated a responsible authority under section 13.02, 
        subdivision 16; 
           (2) designated a data practices compliance official under 
        section 13.05, subdivision 13; 
           (3) prepared the public document that names the responsible 
        authority and describes the records and data on individuals that 
        are maintained by the government entity under section 13.05, 
        subdivision 1; 
           (4) developed public access procedures under section 13.03, 
        subdivision 2; procedures to guarantee the rights of data 
        subjects under section 13.05, subdivision 8; and procedures to 
        ensure that data on individuals are accurate and complete and to 
        safeguard the data's security under section 13.05, subdivision 
        5; 
           (5) sought an oral, written, or electronic opinion from the 
        commissioner of administration related to the matter at issue 
        and acted in conformity with that opinion or acted in conformity 
        with an opinion issued under section 13.072 that was sought by 
        another person; or 
           (6) provided ongoing training to government entity 
        personnel who respond to requests under this chapter. 
           (c) The court shall award reasonable attorney fees to a 
        prevailing plaintiff who has brought an action under this 
        subdivision if the government entity that is the defendant in 
        the action was also the subject of a written opinion issued 
        under section 13.072 and the court finds that the opinion is 
        directly related to the cause of action being litigated and that 
        the government entity did not act in conformity with the opinion.
           Sec. 4.  [13.15] [COMPUTER DATA.] 
           Subdivision 1.  [DEFINITIONS.] As used in this section, the 
        following terms have the meanings given. 
           (a) [ELECTRONIC ACCESS DATA.] "Electronic access data" 
        means data created, collected, or maintained about a person's 
        access to a government entity's computer for the purpose of:  
           (1) gaining access to data or information; 
           (2) transferring data or information; or 
           (3) using government services. 
           (b) [COOKIE.] "Cookie" means any data that a 
        government-operated computer electronically places on the 
        computer of a person who has gained access to a government 
        computer.  
           Subd. 2.  [CLASSIFICATION OF DATA.] Electronic access data 
        are private data on individuals or nonpublic data. 
           Subd. 3.  [NOTICE; REFUSAL TO ACCEPT COOKIE.] (a) A 
        government entity that creates, collects, or maintains 
        electronic access data or uses its computer to install a cookie 
        on a person's computer must inform persons gaining access to the 
        entity's computer of the creation, collection, or maintenance of 
        electronic access data or the entity's use of cookies before 
        requiring the person to provide any data about the person to the 
        government entity.  As part of that notice, the government 
        entity must inform the person how the data will be used and 
        disseminated, including the uses and disseminations in 
        subdivision 4. 
           (b) Notwithstanding a person's refusal to accept a cookie 
        on the person's computer, a government entity must allow the 
        person to gain access to data or information, transfer data or 
        information, or use government services by the government 
        entity's computer. 
           Subd. 4.  [USE OF ELECTRONIC ACCESS DATA.] Electronic 
        access data may be disseminated: 
           (1) to the commissioner for the purpose of evaluating 
        electronic government services; 
           (2) to another government entity to prevent unlawful 
        intrusions into government electronic systems; or 
           (3) as otherwise provided by law. 
           Sec. 5.  Minnesota Statutes 2002, section 13.32, is amended 
        by adding a subdivision to read: 
           Subd. 4a.  [NONPUBLIC SCHOOL STUDENTS.] Data collected by a 
        public school on a child or parent of a child, whose identity 
        must be reported pursuant to section 120A.24, is private data 
        which: 
           (1) shall not be designated directory information pursuant 
        to subdivision 5 unless prior written consent is given by the 
        child's parent or guardian; and 
           (2) may be disclosed only pursuant to subdivision 3, clause 
        (a), (b), (c), or (f). 
           This provision does not apply to students who receive 
        shared time educational services from a public agency or 
        institution. 
           Sec. 6.  [13.3215] [UNIVERSITY OF MINNESOTA DATA.] 
           Claims experience and all related information received from 
        carriers and claims administrators participating in a University 
        of Minnesota group health, dental, life, or disability insurance 
        plan or the University of Minnesota workers' compensation 
        program, and survey information collected from employees or 
        students participating in these plans and programs, except when 
        the university determines that release of the data will not be 
        detrimental to the plan or program, are classified as nonpublic 
        data not on individuals pursuant to section 13.02, subdivision 9.
           Sec. 7.  Minnesota Statutes 2002, section 13.37, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DATA DISSEMINATION.] Crime prevention block maps 
        and names, home addresses, and telephone numbers of volunteers 
        who participate in community crime prevention programs may be 
        disseminated to volunteers participating in crime prevention 
        programs.  The location of a National Night Out event is public 
        data. 
           Sec. 8.  Minnesota Statutes 2002, section 13.43, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] As used in this section, 
        "personnel data" means data on individuals collected because the 
        individual is or was an employee of or an applicant for 
        employment by, performs services on a voluntary basis for, or 
        acts as an independent contractor with a state agency, statewide 
        system or political subdivision or is a member of or an 
        applicant for an advisory board or commission.  Personnel data 
        includes data submitted by an employee to a government entity as 
        part of an organized self-evaluation effort by the government 
        entity to request suggestions from all employees on ways to cut 
        costs, make government more efficient, or improve the operation 
        of government.  An employee who is identified in a suggestion 
        shall have access to all data in the suggestion except the 
        identity of the employee making the suggestion. 
           Sec. 9.  [13.468] [DATA SHARING WITHIN COUNTIES.] 
           County welfare, human services, corrections, public health, 
        and veterans service units within a county may inform each other 
        as to whether an individual or family currently is being served 
        by the county unit, without the consent of the subject of the 
        data.  Data that may be shared are limited to the following:  
        the name, telephone number, and last known address of the data 
        subject; and the identification and contact information 
        regarding personnel of the county unit responsible for working 
        with the individual or family.  If further information is 
        necessary for the county unit to carry out its duties, each 
        county unit may share additional data if the unit is authorized 
        by state statute or federal law to do so or the individual gives 
        written, informed consent.  
           Sec. 10.  Minnesota Statutes 2002, section 13.643, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [DATA RECEIVED FROM FEDERAL GOVERNMENT.] All data 
        received by the department of agriculture from the United States 
        Department of Health and Human Services, the Food and Drug 
        Administration, and the Agriculture, Food Safety, and Inspection 
        Service that is necessary for the purpose of carrying out the 
        department of agriculture's statutory food safety regulatory and 
        enforcement duties are classified as nonpublic data under 
        section 13.02, subdivision 9, and private data on individuals 
        under section 13.02, subdivision 12.  This section does not 
        preclude the obligation of the department of agriculture to 
        appropriately inform consumers of issues that could affect 
        public health. 
           Sec. 11.  Minnesota Statutes 2002, section 13.746, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STATE LOTTERY.] (a)  [ACCESS TO CRIMINAL DATA.] 
        The state lottery director's access to criminal history data on 
        certain persons is governed by sections 349A.06, subdivision 4, 
        and 349A.07, subdivision 2. 
           (b)  [LOTTERY PRIZE WINNERS.] Certain data on lottery prize 
        winners are classified under section 349A.08, subdivision 9.  
           (c)  [ELECTRONIC TRANSMISSIONS.] Data on individuals 
        requesting electronic transmissions from the lottery are 
        classified in section 349A.08, subdivision 9.  
           Sec. 12.  Minnesota Statutes 2002, section 13.785, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEPARTMENT OF VETERANS AFFAIRS.] (a)  [CERTAIN 
        VETERANS BENEFITS AND MILITARY CERTIFICATES OF DISCHARGE.] 
        Access to military certificates of discharge and to files 
        pertaining to claims for certain veterans benefits is governed 
        by section 196.08. 
           (b)  [AGENT ORANGE INFORMATION AND ASSISTANCE ACT.] 
        Disclosure of summary data and of the identity of a veteran 
        about whom information is received under sections 196.19 to 
        196.26, is governed by section 196.25. 
           Sec. 13.  Minnesota Statutes 2002, section 16C.06, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [INFORMATION IN BIDS AND PROPOSALS.] Data 
        relating to bids and proposals are governed by section 13.591. 
           Sec. 14.  Minnesota Statutes 2002, section 16C.10, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REVERSE AUCTION.] (a) For the purpose of this 
        subdivision, "reverse auction" means a purchasing process in 
        which vendors compete to provide goods at the lowest selling 
        price in an open and interactive environment. 
           (b) The provisions of section sections 13.591, subdivision 
        3, and 16C.06, subdivisions subdivision 2 and 3, do not apply 
        when the commissioner determines that a reverse auction is the 
        appropriate purchasing process. 
           Sec. 15.  Minnesota Statutes 2002, section 196.08, is 
        amended to read: 
           196.08 [FILES AND RECORDS CONFIDENTIAL.] 
           (a) The contents of, and all files, records, reports, 
        papers and documents pertaining to, any claim for the benefits 
        of Laws 1943, chapter 420, whether pending or adjudicated, shall 
        be deemed confidential and privileged and no disclosure thereof 
        shall be made, without the consent in writing of the claimant 
        who has not been adjudicated incompetent, except as follows: 
           (a) (1) To said claimant personally, a duly appointed 
        guardian, an attorney in fact, or a duly authorized 
        representative, and as to personal matters, when, in the 
        judgment of the commissioner, such disclosure would not be 
        injurious to the physical or mental health of the claimant.  
           (b) (2) To the representatives of veterans' organizations 
        recognized by the United States government, not exceeding five 
        from each such veterans' organizations, and when such 
        representatives have been duly certified as such by the state 
        department of any such veterans' organizations in the state of 
        Minnesota.  
           (c) (3) In any court in the state of Minnesota which has 
        jurisdiction of the parties to, and subject matter of, an action 
        or proceeding therein pending, as found by said court, when 
        required to be produced by the process of such court, and then 
        only in open court, as evidence, in such action or proceeding 
        after a judge thereof shall have ruled the same to be relevant 
        and competent evidence in such action or proceeding according to 
        the laws and statutes of said state.  
           (b) Notwithstanding section 382.16, and except as 
        authorized in paragraph (c), no government entity may release 
        the contents of, or any files, records, reports, papers, or 
        documents pertaining to, United States government form DD214 or 
        DD215 or any other certificate of discharge from military 
        service to any person unless that person: 
           (1) provides proof of identity; 
           (2) demonstrates tangible interest; and 
           (3) completes the required release form prepared by the 
        government entity. 
           (c) This section does not prohibit release of forms DD214 
        and DD215 or other certificates of discharge from military 
        service by an employee or official within a government entity to 
        another employee or official within that government entity for 
        purposes of performance of official duties. 
           (d) Forms DD214 and DD215 and certificates of discharge 
        from military service filed with a government agency on or after 
        January 1, 2004, are classified as private data on individuals 
        under section 13.02, subdivision 12. 
           (e) Notwithstanding section 386.015, subdivision 5, no fee 
        may be charged by a government entity for the release of 
        information to a qualified person under this section.  
           (f) For purposes of paragraph (b), a person who has a 
        tangible interest is: 
           (1) the subject of the record, report, paper, or document; 
           (2) the surviving spouse of the subject, if the subject is 
        deceased; 
           (3) a surviving child of the subject, if the subject is 
        deceased and there is no surviving spouse; 
           (4) a surviving parent of the subject, if the subject is 
        deceased and there is no surviving spouse or surviving children; 
        and 
           (5) a duly appointed guardian, an attorney in fact, or a 
        duly authorized representative. 
           (g) For purposes of this section, the term "government 
        entity" has the meaning given in section 13.02, subdivision 7a. 
           Sec. 16.  Minnesota Statutes 2002, section 268.19, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [WAGE DETAIL DATA.] (a) Wage and employment data 
        gathered pursuant to section 268.044 may be disseminated to and 
        used, without the consent of the subject of the data, by an 
        agency of another state that is designated as the performance 
        accountability and consumer information agency for that state 
        pursuant to Code of Federal Regulations, volume 20, part 
        663.510(c), in order to carry out the requirements of the 
        Workforce Investment Act of 1998, United States Code, title 29, 
        sections 2842 and 2871. 
           (b) The commissioner may enter into a data exchange 
        agreement with an employment and training service provider under 
        section 116L.17, or the Workforce Investment Act of 1998, United 
        States Code, title 29, section 2864, under which the 
        commissioner, with the consent of the subject of the data, may 
        furnish data on the quarterly wages paid and number of hours 
        worked on those individuals who have received employment and 
        training services from the provider.  With the initial consent 
        of the subject of the data, this data may be shared for up to 
        three years after termination of the employment and training 
        services provided to the individual without execution of an 
        additional consent.  This data shall be furnished solely for the 
        purpose of evaluating the employment and training services 
        provided.  The data subject's ability to receive service is not 
        affected by a refusal to give consent under this paragraph.  The 
        consent form must state this fact. 
           Sec. 17.  Minnesota Statutes 2002, section 307.08, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [BURIAL SITES DATA.] Burial sites locational and 
        related data maintained by the office of the state archaeologist 
        and accessible through the office's "Unplatted Burial Sites and 
        Earthworks in Minnesota" Web site are security information for 
        purposes of section 13.37.  Persons who gain access to the data 
        maintained on the site are subject to liability under section 
        13.08 and the penalty established by section 13.09 if they 
        improperly use or further disseminate the data. 
           Sec. 18.  Minnesota Statutes 2002, section 349A.08, 
        subdivision 9, is amended to read: 
           Subd. 9.  [PRIVACY.] (a) The phone number and street 
        address of a winner of a lottery prize is private data on 
        individuals under chapter 13. 
           (b) Data on an individual, including name, physical and 
        electronic address, and telephone number, that are given to the 
        lottery for direct marketing purposes are private data on 
        individuals as defined in section 13.02.  For purposes of this 
        subdivision, "direct marketing" means marketing conducted by the 
        lottery directly with the consumer.  
           Sec. 19.  Minnesota Statutes 2002, section 386.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RECORDATION.] (a) Certificates of 
        discharge from the United States army, the United States navy, 
        and the United States marine corps and releases or transfers 
        from active duty therein may be recorded in the office of the 
        county recorder of any county in this state by the person to 
        whom such discharge, release or transfer was issued without the 
        payment of any fee to the county recorder for recording the 
        same.  Upon the request of the person having such instrument 
        recorded, the county recorder shall not stamp, mark, or make any 
        endorsement upon any such certificate of discharge, release or 
        transfer, but after the recording thereof has been completed the 
        recorder shall return the certificate of discharge, release, or 
        transfer in the condition received.  
           (b) In any county where the compensation of the county 
        recorder consists of fees only, the county recorder shall be 
        entitled to a fee of 60 cents for recording such instrument, 
        which shall be paid by the county upon presentation of a 
        verified claim by the county recorder. 
           (c) The release of any information pertaining to military 
        certificates of discharge is governed by section 196.08. 
           Sec. 20.  [REPEALER.] 
           Minnesota Statutes 2002, sections 13.6401, subdivision 4; 
        and 270B.03, subdivision 8; and Laws 2001, First Special Session 
        chapter 10, article 2, section 40, are repealed. 
           Sec. 21.  [EFFECTIVE DATE; APPLICATION.] 
           (a) Section 3 is effective August 1, 2003, and applies to 
        actions commenced on and after that date. 
           (b) Sections 12, 15, and 19 are effective January 1, 2004. 
           (c) Sections 11 and 18 are effective the day following 
        enactment. 
           Presented to the governor May 27, 2003 
           Signed by the governor May 30, 2003, 3:50 p.m.

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