1.1                          A bill for an act 
  1.2             relating to the year 2000 problem; providing certain 
  1.3             immunities; providing for the time of trial of Y2K 
  1.4             processing actions; providing for referral of such 
  1.5             actions to a panel of the district court; providing 
  1.6             additional circumstances in which an emergency can be 
  1.7             declared; providing authority to local government 
  1.8             units to address the year 2000 problem; requiring 
  1.9             reports by certain utilities and health care and 
  1.10            nursing home providers; requiring the department of 
  1.11            health to collect and disseminate certain information; 
  1.12            requiring the continuation of payments to certain 
  1.13            health care providers; appropriating money; proposing 
  1.14            coding for new law as Minnesota Statutes, chapter 604B.
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  [604B.01] [YEAR 2000 ACTIVITIES; IMMUNITY.] 
  1.17     Subdivision 1.  [DEFINITIONS.] For the purpose of this 
  1.18  section, the terms defined in this section have the meanings 
  1.19  given them. 
  1.20     Subd. 2.  [ASSOCIATION.] "Association" means a trade, 
  1.21  professional, governmental, or similar organization the members 
  1.22  of which are individuals, enterprises, or governmental units 
  1.23  engaged in similar lines of business, services, or activity. 
  1.24     Subd. 3.  [STATE AGENCY.] "State agency" means the 
  1.25  University of Minnesota, Minnesota state colleges and 
  1.26  universities, and the departments, boards, agencies, and 
  1.27  commissions in the executive, judicial, and legislative branches.
  1.28     Subd. 4.  [YEAR 2000 SOLUTION INFORMATION.] "Year 2000 
  1.29  solution information" means information related to solutions 
  1.30  that address the inability of computer systems, software, or 
  2.1   electronically controlled devices to recognize certain dates in 
  2.2   1999 and after December 31, 1999.  That inability may cause 
  2.3   disruptions in electronic communications or the functioning of 
  2.4   electronically controlled equipment resulting or reasonably 
  2.5   anticipated to result from erroneous data that is or may be 
  2.6   supplied by electronic devices. 
  2.7      Subd. 5.  [ASSOCIATION AND RELATED IMMUNITY.] No cause of 
  2.8   action may be maintained against an association for damages or 
  2.9   harm resulting from the collection of year 2000 solution 
  2.10  information or the publication of that information or against 
  2.11  any person or entity for providing year 2000 solution 
  2.12  information to the association. 
  2.13     Subd. 6.  [STATE AGENCY IMMUNITY.] No cause of action may 
  2.14  be maintained against a state agency for damages or harm 
  2.15  resulting from the collection of year 2000 solution information 
  2.16  or the publication of that information. 
  2.17     Subd. 7.  [GOVERNMENTAL UNIT IMMUNITY.] No cause of action 
  2.18  may be maintained against a governmental unit as defined in 
  2.19  section 462.384, subdivision 2, including governmental units 
  2.20  acting jointly under section 471.59, for damages or harm 
  2.21  resulting from the collection, publication, or dissemination of 
  2.22  year 2000 solution information to other governmental units or to 
  2.23  the metropolitan council or agencies. 
  2.24     Subd. 8.  [EXCEPTION.] Subdivisions 5 to 7 do not apply if 
  2.25  the party against whom the claim is brought knew that the year 
  2.26  2000 solution information provided was materially false or 
  2.27  provided the information with reckless disregard as to the 
  2.28  accuracy of the information. 
  2.29     Subd. 9.  [NO IMPLIED CAUSE OF ACTION CREATED.] No 
  2.30  liability on the part of any person or any public or private 
  2.31  entity is implied or created by this section by the absence of a 
  2.32  grant of immunity under this section. 
  2.33     Sec. 2.  [604B.02] [TRIAL OF MATTERS INVOLVING Y2K 
  2.34  PROCESSING.] 
  2.35     (a) For a civil cause of action involving a claim in tort, 
  2.36  contract, product liability, or under any other legal theory 
  3.1   arising out of damages allegedly due to a failure of Y2K 
  3.2   processing, an action may be commenced and discovery may be 
  3.3   conducted, but no dispositive motion may be heard or trial 
  3.4   conducted until after January 2, 2001 unless the court 
  3.5   determines, for good cause shown, that a failure to hear and 
  3.6   rule on a dispositive motion would result in hardship. 
  3.7      (b) Actions involving a failure of Y2K processing shall be 
  3.8   referred to a Y2K processing panel of the district court to 
  3.9   which district judges in a sufficient number shall be assigned 
  3.10  on and after July 1, 1999. 
  3.11     Sec. 3.  [EMERGENCIES.] 
  3.12     (a) The governor may declare an emergency under this 
  3.13  section for purposes of Minnesota Statutes, sections 12.31, 
  3.14  12.36, and 12.37.  The governor may declare an emergency under 
  3.15  authority of this section only to the extent that actual or 
  3.16  potential failure of computers or electronically controlled 
  3.17  devices creates an actual or imminent serious threat to the 
  3.18  health or safety of persons or an actual or imminent threat of 
  3.19  catastrophic loss to property or the environment. 
  3.20     (b) A declaration for purposes of Minnesota Statutes, 
  3.21  section 12.31, must be made according to procedures in that 
  3.22  section. 
  3.23     (c) The governor may declare an emergency under this 
  3.24  section for purposes of Minnesota Statutes, section 12.36 or 
  3.25  12.37, without declaring a peacetime emergency under Minnesota 
  3.26  Statutes, section 12.31.  A declaration for purposes of 
  3.27  Minnesota Statutes, section 12.36 or 12.37, may specify that it 
  3.28  applies to all or certain units of state or local government, 
  3.29  must specify the time period for which it applies, and must be 
  3.30  filed with the secretary of state. 
  3.31     (d) This section is in addition to and does not limit 
  3.32  authority granted to the governor or local government officials 
  3.33  by Minnesota Statutes, chapter 12, or other law. 
  3.34     (e) After April 1, 2000, the governor may not use this 
  3.35  section as authority to declare an emergency. 
  3.36     (f) If an emergency is declared under authority of this 
  4.1   section, a unit of state or local government may omit compliance 
  4.2   with the procedures and law listed in Minnesota Statutes, 
  4.3   sections 12.36, paragraph (a), clause (2), and 12.37, clause 
  4.4   (2), only to the extent necessary to protect health and safety 
  4.5   of persons or avoid catastrophic loss to property or the 
  4.6   environment.  A unit of state or local government must report to 
  4.7   the year 2000 project office in the department of administration 
  4.8   on omitting compliance with procedures and laws.  The report 
  4.9   must be filed within 30 days of the action that did not comply 
  4.10  with the customary laws. 
  4.11     Sec. 4.  [YEAR 2000 PROBLEM REPORTS.] 
  4.12     All electric utilities, as defined in Minnesota Statutes, 
  4.13  section 216B.38, subdivision 5, and telephone companies, as 
  4.14  defined in Minnesota Statutes, section 237.01, subdivisions 2 
  4.15  and 3, must file status reports on year 2000 problems with the 
  4.16  public utilities commission and the department of public 
  4.17  service, with a copy to the division of emergency management of 
  4.18  the department of public safety, on June 1, September 1, and 
  4.19  December 1, 1999.  The status report must include a statement of 
  4.20  the percentage of the year 2000 problem inventory remediated, a 
  4.21  schedule for completing assessment, testing and remediation, and 
  4.22  summary contingency plans related to the risk of loss of 
  4.23  service.  The department may request further reports, as 
  4.24  necessary.  If a report indicates that all year 2000 problems 
  4.25  have been remediated, an entity need not file a subsequent 
  4.26  report unless there has been a change. 
  4.27     Sec. 5.  [YEAR 2000 PROBLEM EXEMPTION FROM UNIFORM 
  4.28  MUNICIPAL CONTRACTING LAW.] 
  4.29     Subdivision 1.  [MUNICIPAL CONTRACTS.] Minnesota Statutes, 
  4.30  section 471.345, does not apply to the purchase or rental of 
  4.31  supplies, materials, and equipment nor to the construction, 
  4.32  alteration, repair, and maintenance of real or personal property 
  4.33  if the governing body of a municipality determines that there is 
  4.34  an urgency due to the actual or potential failure or malfunction 
  4.35  of public infrastructure or systems critical to the delivery of 
  4.36  municipal services due to year 2000 problems with computers and 
  5.1   electronically controlled devices. 
  5.2      Subd. 2.  [SPECIAL PROCEDURE.] A contract exempted from 
  5.3   Minnesota Statutes, section 471.345, by subdivision 1 may, at 
  5.4   the discretion of the municipality, be made by direct 
  5.5   negotiation by obtaining two or more quotations or in the open 
  5.6   market.  All quotations shall be kept on file for a period of at 
  5.7   least one year after receipt.  
  5.8      Subd. 3.  [APPLICABILITY OF OTHER LAWS.] This section 
  5.9   supersedes any inconsistent law. 
  5.10     Subd. 4.  [REPORTS.] A municipality must report to the year 
  5.11  2000 project office in the department of administration on each 
  5.12  instance in which it omitted compliance with the uniform 
  5.13  municipal contracting law under authority of this section. 
  5.14     Subd. 5.  [EXPIRATION.] This section applies only to a 
  5.15  contract entered into or goods or services purchased before 
  5.16  April 1, 2000. 
  5.17     Sec. 6.  [YEAR 2000 PROBLEM; LOCAL GOVERNMENT DEBT.] 
  5.18     Subdivision 1.  [SCOPE.] For the purpose of this section, 
  5.19  the terms defined in subdivisions 2 to 4 have the meanings given 
  5.20  them. 
  5.21     Subd. 2.  [YEAR 2000 PROBLEM.] "Year 2000 problem" means 
  5.22  disruptions in electronic communications or the functioning of 
  5.23  electronically controlled equipment resulting or reasonably 
  5.24  anticipated to result from erroneous data that is or may be 
  5.25  supplied by electronic devices in 1999 or on or after January 1, 
  5.26  2000. 
  5.27     Subd. 3.  [POLITICAL SUBDIVISION.] "Political subdivision" 
  5.28  means a home rule charter city, a statutory city, a school 
  5.29  district, a county, a town, a joint powers board, or a local 
  5.30  governmental entity authorized by general or special law or 
  5.31  charter to own and operate electronically controlled equipment. 
  5.32     Subd. 4.  [YEAR 2000 PROBLEM REMEDIATION.] "Year 2000 
  5.33  problem remediation" means planning for and taking remedial or 
  5.34  preventive action to prepare for or correct a year 2000 problem 
  5.35  that creates an actual or imminent serious threat:  (1) to the 
  5.36  health or safety of persons; or (2) of catastrophic loss to 
  6.1   property or the environment. 
  6.2      Subd. 5.  [AUTHORITY.] Any law or charter provision 
  6.3   authorizing a political subdivision to borrow money and incur 
  6.4   debt is deemed to include the authority to borrow money and 
  6.5   incur that debt for year 2000 problem remediation. 
  6.6      Debt incurred for year 2000 problem remediation is not 
  6.7   subject to debt limits and notwithstanding any contrary 
  6.8   provision of law or charter provision, need not be approved by 
  6.9   the voters of a political subdivision.  A political subdivision 
  6.10  not otherwise authorized to borrow money and incur debt may 
  6.11  incur debt for year 2000 problem remediation in the same manner 
  6.12  and subject to the same limitations as statutory cities. 
  6.13     Subd. 6.  [APPROVAL.] The governing body of a political 
  6.14  subdivision must specifically approve use of this section to 
  6.15  incur debt. 
  6.16     Subd. 7.  [SUNSET.] The authority to incur debt under this 
  6.17  section expires April 1, 2000, provided that debt incurred under 
  6.18  this section need not be repaid until December 31, 2005. 
  6.19     Subd. 8.  [REPORTING.] A political subdivision must report 
  6.20  to the commissioner of administration within 60 days after 
  6.21  incurring debt that could not have been incurred but for 
  6.22  authority of this section.  The report must specify how the 
  6.23  borrowed funds were used to prepare for or correct a year 2000 
  6.24  problem that created an actual or imminent serious threat:  (1) 
  6.25  to the health or safety of persons; or (2) of catastrophic loss 
  6.26  to property or the environment. 
  6.27     Sec. 7.  [DEPARTMENT OF HEALTH; YEAR 2000 ACTIVITY.] 
  6.28     Subdivision 1.  [DEPARTMENT OF HEALTH SURVEY.] The 
  6.29  department of health must, by July 30, 1999, survey all 
  6.30  hospitals, nursing homes, nontransient noncommunity water 
  6.31  systems operated by a public entity, and community water supply 
  6.32  systems for year 2000 problems and solutions related to their 
  6.33  operations.  The department, upon request, must disseminate 
  6.34  information about those year 2000 problems and proposed 
  6.35  solutions to hospitals, nursing homes, and water supply system 
  6.36  operators in a prompt and reasonable manner. 
  7.1      Subd. 2.  [STATUS REPORTS.] All hospitals, nursing homes, 
  7.2   nontransient noncommunity water systems operated by a public 
  7.3   entity, and community water supply systems must file status 
  7.4   reports on year 2000 problems with the department of health, 
  7.5   with a copy to the division of emergency management of the 
  7.6   department of public safety, on June 1, September 1, and 
  7.7   December 1, 1999.  The status report must include a statement of 
  7.8   the percentage of the year 2000 problem inventory remediated, a 
  7.9   schedule for completing assessment, testing, and remediation, 
  7.10  and summary contingency plans related to the risk of loss of 
  7.11  service.  If there has been no change since the previous report, 
  7.12  the report may indicate only that no change has occurred. 
  7.13     Sec. 8.  [DEPARTMENT OF HUMAN SERVICES; YEAR 2000 
  7.14  ACTIVITY.] 
  7.15     If year 2000 computer problems create a failure or 
  7.16  malfunction in the infrastructure or systems used by the 
  7.17  department of human services for payment to health care 
  7.18  providers under state government programs or counties, the 
  7.19  commissioner of human services shall continue to pay all health 
  7.20  care providers paid under state government programs or counties 
  7.21  by manual warrant or other measures within the statutorily 
  7.22  required time period. 
  7.23     Sec. 9.  [STATUS REPORTS.] 
  7.24     (a) The recipients of the status reports required by 
  7.25  sections 4 and 7, subdivision 2, including the division of 
  7.26  emergency management, shall consult with those required to file 
  7.27  those reports concerning the form of the report. 
  7.28     (b) All reports provided under sections 4 and 7 shall be 
  7.29  considered Year 2000 Readiness Disclosures. 
  7.30     Sec. 10.  [YEAR 2000 APPROPRIATIONS CARRY-FORWARD.] 
  7.31     The appropriations in Laws 1997, chapter 202, article 1, 
  7.32  section 12, subdivision 7, and Laws 1998, chapter 366, section 
  7.33  6, to the department of administration for modifications of 
  7.34  state business systems to address year 2000 changes do not 
  7.35  cancel and are available until expended. 
  7.36     Sec. 11.  [YEAR 2000 LOAN FUND.] 
  8.1      (a) $....... is appropriated from the budget reserve 
  8.2   account in the general fund in fiscal year 1999 to the 
  8.3   commissioner of finance to capitalize a fund, to be used to make 
  8.4   loans to school districts; counties; joint powers boards; home 
  8.5   rule charter and statutory cities; and towns to meet the costs 
  8.6   they incur in addressing year 2000 problems. 
  8.7      (b) A loan may not be made until the year 2000 project 
  8.8   office of the department of administration certifies to the 
  8.9   commissioner of finance that: 
  8.10     (1) the proposed use of the loan is related only to 
  8.11  remediation of a year 2000 problem; 
  8.12     (2) the unit of local government has insufficient resources 
  8.13  available to address year 2000 problems; and 
  8.14     (3) the loan would be used to remediate problems that are 
  8.15  likely to affect public health and safety or cause catastrophic 
  8.16  loss to property or the environment.  
  8.17     (c) The local units of government that received the loans 
  8.18  must repay them in five equal annual installments beginning one 
  8.19  year after receipt of the loan.  No interest is payable on the 
  8.20  loan.  Repayments must be deposited in the general fund. 
  8.21     (d) A unit of local government receiving a loan under this 
  8.22  section must report to the year 2000 project office in the 
  8.23  department of administration within 60 days of receiving the 
  8.24  loan.  The report must state how the loan was used in accordance 
  8.25  with the criteria of paragraph (b). 
  8.26     (e) This appropriation cancels April 1, 2000. 
  8.27     Any canceled money must be deposited in the budget reserve 
  8.28  account. 
  8.29     Sec. 12.  [COMMISSIONER REVIEW.] 
  8.30     The commissioner of administration, through staff of the 
  8.31  Y2K project office, is responsible for reviewing use of 
  8.32  emergency authority and emergency funds under this act and shall 
  8.33  review reports from state agencies and political subdivisions 
  8.34  under sections 3, 4, 5, and 11.  If the commissioner determines 
  8.35  that funds obtained under section 11 were not used in a manner 
  8.36  consistent with the requirements of section 11, paragraph (b), 
  9.1   the political subdivision must pay interest on the loan at the 
  9.2   rate of 12 percent, compounded annually from the time the loan 
  9.3   was received. 
  9.4      Sec. 13.  [YEAR 2000 CHANGES; DEPARTMENT OF ADMINISTRATION 
  9.5   CONTINGENCY FUND APPROPRIATION.] 
  9.6      $....... is appropriated from the budget reserve account in 
  9.7   the general fund in fiscal year 2000 to the commissioner of 
  9.8   administration for modification of state business systems to 
  9.9   address year 2000 changes.  The appropriation is placed in a 
  9.10  contingent account and is available only upon approval of the 
  9.11  governor, after consultation with the legislative advisory 
  9.12  commission.  This appropriation may be used only if the governor 
  9.13  determines that:  (1) the agency to receive the appropriation 
  9.14  has insufficient resources available to address year 2000 
  9.15  problems; and (2) that the money would be used to remediate 
  9.16  problems that are likely to affect public health and safety or 
  9.17  cause catastrophic loss to property or the environment.  This 
  9.18  appropriation is not available until the commissioner has 
  9.19  determined that all other money allocated for replacement or 
  9.20  enhancement of existing technology for year 2000 compliance will 
  9.21  be expended.  This appropriation cancels April 1, 2000. 
  9.22     Sec. 14.  [EFFECTIVE DATE.] 
  9.23     Sections 1 to 13 are effective the day following final 
  9.24  enactment.