1.1                          A bill for an act 
  1.2             relating to the year 2000 problem; providing immunity 
  1.3             for certain activities; clarifying the mutual aid 
  1.4             authority of local government units; providing 
  1.5             authority to local government units to address the 
  1.6             year 2000 problem; requiring reports by certain 
  1.7             utilities and health care and nursing home providers; 
  1.8             requiring the department of health to collect and 
  1.9             disseminate certain information; appropriating money; 
  1.10            amending Minnesota Statutes 1998, sections 12.31, 
  1.11            subdivision 2; and 12.37; proposing coding for new law 
  1.12            as Minnesota Statutes, chapter 604B. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1998, section 12.31, 
  1.15  subdivision 2, is amended to read: 
  1.16     Subd. 2.  [DECLARATION OF PEACETIME EMERGENCY.] The 
  1.17  governor may declare a peacetime emergency.  A peacetime 
  1.18  declaration of emergency may be declared only when an act of 
  1.19  nature, a technological failure or malfunction, a terrorist 
  1.20  incident, an industrial accident, a hazardous materials 
  1.21  accident, or a civil disturbance endangers life and property and 
  1.22  local government resources are inadequate to handle the 
  1.23  situation.  It must not be continued for more than five days 
  1.24  unless extended by resolution of the executive council up to 30 
  1.25  days.  An order, or proclamation declaring, continuing, or 
  1.26  terminating an emergency must be given prompt and general 
  1.27  publicity and filed with the secretary of state.  
  1.28     Sec. 2.  Minnesota Statutes 1998, section 12.37, is amended 
  1.29  to read: 
  2.1      12.37 [POLITICAL SUBDIVISIONS, AUTHORITY TO ENTER INTO 
  2.2   CONTRACTS.] 
  2.3      During an emergency or disaster, each political 
  2.4   subdivision, notwithstanding any statutory or charter provision 
  2.5   to the contrary, and through its governing body acting within or 
  2.6   without the corporate limits of the political subdivision, may: 
  2.7      (1) enter into contracts and incur obligations necessary to 
  2.8   combat the disaster by protecting the health and safety of 
  2.9   persons and property and by providing emergency assistance to 
  2.10  the victims of the disaster; and 
  2.11     (2) exercise the powers vested by this subdivision in the 
  2.12  light of the exigencies of the disaster without compliance with 
  2.13  time-consuming procedures and formalities prescribed by law 
  2.14  pertaining to: 
  2.15     (i) the performance of public work; 
  2.16     (ii) entering into contracts; 
  2.17     (iii) incurring of obligations; 
  2.18     (iv) employment of temporary workers; 
  2.19     (v) rental of equipment; 
  2.20     (vi) purchase of supplies and materials; 
  2.21     (vii) limitations upon tax levies; and 
  2.22     (viii) the appropriation and expenditure of public funds, 
  2.23  for example, but not limited to, publication of ordinances and 
  2.24  resolutions, publication of calls for bids, provisions of civil 
  2.25  service laws and rules, provisions relating to low bids, and 
  2.26  requirements for budgets.  
  2.27     The failure or malfunction of public infrastructure or 
  2.28  systems critical to the delivery of municipal services due to 
  2.29  year 2000 problems with computers and electronically controlled 
  2.30  devices shall constitute an emergency for the purposes of this 
  2.31  section. 
  2.32     Sec. 3.  [604B.01] [YEAR 2000 ACTIVITIES; IMMUNITY.] 
  2.33     Subdivision 1.  [DEFINITIONS.] For the purpose of this 
  2.34  section, the terms defined in this section have the meanings 
  2.35  given them. 
  2.36     Subd. 2.  [ASSOCIATION.] "Association" means a trade, 
  3.1   professional, governmental, or similar organization the members 
  3.2   of which are individuals, enterprises, or governmental units 
  3.3   engaged in similar lines of business, services, or activity. 
  3.4      Subd. 3.  [STATE AGENCY.] "State agency" means the 
  3.5   University of Minnesota, Minnesota state colleges and 
  3.6   universities, and the departments, boards, agencies, and 
  3.7   commissions in the executive, judicial, and legislative branches.
  3.8      Subd. 4.  [YEAR 2000 SOLUTION INFORMATION.] "Year 2000 
  3.9   solution information" means information related to solutions 
  3.10  that address the inability of computer systems, software, or 
  3.11  electronically controlled devices to recognize certain dates in 
  3.12  1999 and after December 31, 1999.  That inability may cause 
  3.13  disruptions in electronic communications or the functioning of 
  3.14  electronically controlled equipment resulting or reasonably 
  3.15  anticipated to result from erroneous data that is or may be 
  3.16  supplied by electronic devices. 
  3.17     Subd. 5.  [ASSOCIATION AND RELATED IMMUNITY.] No cause of 
  3.18  action may be maintained against an association for damages or 
  3.19  harm resulting from the collection of year 2000 solution 
  3.20  information or the publication of that information or against 
  3.21  any person or entity for providing year 2000 solution 
  3.22  information to the association. 
  3.23     Subd. 6.  [STATE AGENCY IMMUNITY.] No cause of action may 
  3.24  be maintained against a state agency for damages or harm 
  3.25  resulting from the collection of year 2000 solution information 
  3.26  or the publication of that information. 
  3.27     Subd. 7.  [GOVERNMENTAL UNIT IMMUNITY.] No cause of action 
  3.28  may be maintained against a governmental unit as defined in 
  3.29  section 462.384, subdivision 2, including governmental units 
  3.30  acting jointly under section 471.59, for damages or harm 
  3.31  resulting from the collection, publication, or dissemination of 
  3.32  year 2000 solution information to other governmental units or to 
  3.33  the metropolitan council or agencies. 
  3.34     Subd. 8.  [EXCEPTION.] Subdivisions 5 to 7 do not apply if 
  3.35  the party against whom the claim is brought knew in fact that 
  3.36  the year 2000 solution information provided was materially false.
  4.1      Subd. 9.  [NO IMPLIED CAUSE OF ACTION CREATED.] No 
  4.2   liability on the part of any person or any public or private 
  4.3   entity is implied or created by this section by the absence of a 
  4.4   grant of immunity under this section. 
  4.5      Sec. 4.  [YEAR 2000 PROBLEM REPORTS.] 
  4.6      All electric utilities, as defined in Minnesota Statutes, 
  4.7   section 216B.38, subdivision 5, and telephone companies, as 
  4.8   defined in Minnesota Statutes, section 237.01, subdivisions 2 
  4.9   and 3, must file status reports on year 2000 problems with the 
  4.10  public utilities commission and the department of public 
  4.11  service, with a copy to the division of emergency management of 
  4.12  the department of public safety, on June 1, September 1, and 
  4.13  December 1, 1999.  The status report must include a statement of 
  4.14  the percentage of the year 2000 problem inventory remediated, a 
  4.15  schedule for completing assessment, testing, and remediation, 
  4.16  and summary contingency plans related to the risk of loss of 
  4.17  service.  The department may request additional reports 
  4.18  including descriptions of testing protocols.  If a report 
  4.19  indicates that:  (1) all year 2000 problems have been 
  4.20  remediated; (2) testing has been completed; and (3) contingency 
  4.21  plans have been updated to reflect year 2000 issues, an entity 
  4.22  need not file a subsequent report unless there has been a change.
  4.23     Sec. 5.  [YEAR 2000 PROBLEM EXEMPTION FROM UNIFORM 
  4.24  MUNICIPAL CONTRACTING LAW.] 
  4.25     Subdivision 1.  [MUNICIPAL CONTRACTS.] Minnesota Statutes, 
  4.26  section 471.345, does not apply to the purchase or rental of 
  4.27  supplies, materials, and equipment nor to the construction, 
  4.28  alteration, repair, and maintenance of real or personal property 
  4.29  if the municipality determines that there is an urgency due to 
  4.30  the actual or potential failure or malfunction of public 
  4.31  infrastructure or systems critical to the delivery of municipal 
  4.32  services due to year 2000 problems with computers and 
  4.33  electronically controlled devices. 
  4.34     Subd. 2.  [SPECIAL PROCEDURE.] A contract exempted from 
  4.35  Minnesota Statutes, section 471.345, by subdivision 1, may, at 
  4.36  the discretion of the municipality, be made by direct 
  5.1   negotiation by obtaining two or more quotations or in the open 
  5.2   market.  All quotations shall be kept on file for a period of at 
  5.3   least one year after receipt.  
  5.4      Subd. 3.  [APPLICABILITY OF OTHER LAWS.] This section 
  5.5   supersedes any inconsistent law.  This section expires December 
  5.6   31, 2000.  
  5.7      Sec. 6.  [YEAR 2000 PROBLEM; LOCAL GOVERNMENT DEBT.] 
  5.8      Subdivision 1.  [SCOPE.] For the purpose of this section, 
  5.9   the terms defined in subdivisions 2 to 4 have the meanings given 
  5.10  them. 
  5.11     Subd. 2.  [YEAR 2000 PROBLEM.] "Year 2000 problem" means 
  5.12  disruptions in electronic communications or the functioning of 
  5.13  electronically controlled equipment resulting or reasonably 
  5.14  anticipated to result from erroneous data that is or may be 
  5.15  supplied by electronic devices in 1999 or on or after January 1, 
  5.16  2000. 
  5.17     Subd. 3.  [POLITICAL SUBDIVISION.] "Political subdivision" 
  5.18  means a home rule charter city, a statutory city, a school 
  5.19  district, a county, a town, the metropolitan council, or any 
  5.20  local governmental entity authorized by general or special law 
  5.21  or charter to own and operate electronically controlled 
  5.22  equipment. 
  5.23     Subd. 4.  [YEAR 2000 PROBLEM REMEDIATION COST.] "Year 2000 
  5.24  problem remediation cost" means a cost or expense of any nature 
  5.25  incurred by a political subdivision in planning for and taking 
  5.26  remedial or preventive action to prepare for or correct the year 
  5.27  2000 problem. 
  5.28     Subd. 5.  [AUTHORITY.] Any law or charter provision 
  5.29  authorizing a political subdivision to borrow money and incur 
  5.30  debt is deemed to include the authority to borrow money and 
  5.31  incur that debt for year 2000 problem remediation. 
  5.32     Debt incurred for year 2000 problem remediation is not 
  5.33  subject to debt limits and notwithstanding any contrary 
  5.34  provision of law or charter provision, need not be approved by 
  5.35  the voters of a political subdivision.  A political subdivision 
  5.36  not otherwise authorized to borrow money and incur debt may, 
  6.1   with approval of the appropriate governmental subdivision with 
  6.2   taxing authority, incur debt for year 2000 problem remediation 
  6.3   in the same manner and subject to the same limitations as 
  6.4   statutory cities. 
  6.5      Subd. 6.  [SUNSET.] The authority to incur debt under this 
  6.6   section expires December 31, 2000, provided that debt incurred 
  6.7   under this section need not be repaid until December 31, 2005. 
  6.8      Subd. 7.  [INTERPRETATION.] This section is to be construed 
  6.9   liberally to achieve its purpose. 
  6.10     Sec. 7.  [DEPARTMENT OF HEALTH; YEAR 2000 ACTIVITY.] 
  6.11     Subdivision 1.  [DEPARTMENT OF HEALTH SURVEY.] The 
  6.12  department of health is authorized to request from all 
  6.13  hospitals, nursing homes, municipal water supply systems, and 
  6.14  noncommunity, nontransient water systems best practices 
  6.15  information with respect to solutions for year 2000 problems, 
  6.16  and is authorized to disseminate such best practices information 
  6.17  to hospitals, nursing homes, and water supply system operators. 
  6.18     Subd. 2.  [STATUS REPORTS.] All hospitals, nursing homes, 
  6.19  municipal water supply systems, and noncommunity, nontransient 
  6.20  water systems must file status reports on year 2000 computer 
  6.21  problems with the department of health, with a copy to the 
  6.22  division of emergency services of the department of public 
  6.23  safety, on June 1, September 1, and December 1, 1999.  The 
  6.24  status report must include a statement of the percentage of the 
  6.25  year 2000 problem inventory remediated, a schedule for 
  6.26  completing assessment, testing, and remediation, and summary 
  6.27  contingency plans related to the risk of loss of service.  The 
  6.28  department may request additional reports including descriptions 
  6.29  of testing protocols.  If a report indicates that:  (1) all year 
  6.30  2000 problems have been remediated; (2) testing has been 
  6.31  completed; and (3) contingency plans have been updated to 
  6.32  reflect year 2000 issues, an entity need not file a subsequent 
  6.33  report unless there has been a change. 
  6.34     Sec. 8.  [DEPARTMENT OF HUMAN SERVICES; 2000 ACTIVITY.] 
  6.35     If year 2000 computer problems create a failure or 
  6.36  malfunction in the infrastructure or systems used by the 
  7.1   department of human services for payment to health care 
  7.2   providers under state government programs or counties, the 
  7.3   commissioner of human services shall continue to pay all health 
  7.4   care providers paid under state government programs or counties 
  7.5   by manual warrant or other measures within the statutorily 
  7.6   required time period. 
  7.7      Sec. 9.  [STATUS REPORTS.] 
  7.8      (a) The recipients of the status reports required by 
  7.9   sections 4 and 7, subdivision 2, including the division of 
  7.10  emergency services, shall negotiate with those required to file 
  7.11  those reports concerning the form of the report. 
  7.12     (b) All reports provided under sections 4 and 7 shall be 
  7.13  considered Year 2000 Readiness Disclosures. 
  7.14     Sec. 10.  [USE OF STATUS REPORTS AS EVIDENCE PROHIBITED.] 
  7.15     The status reports required by sections 4 and 7, 
  7.16  subdivision 2, may not be used as evidence in any action seeking 
  7.17  damages or other relief because of a year 2000 problem. 
  7.18     Sec. 11.  [YEAR 2000 LOAN FUND.] 
  7.19     $20,000,000 is appropriated from the state employee 
  7.20  insurance reserve account in the special revenue fund to the 
  7.21  commissioner of finance to capitalize a fund, to be used to make 
  7.22  loans to the metropolitan council; a metropolitan agency, as 
  7.23  defined by Minnesota Statutes, section 473.121, subdivision 5a; 
  7.24  school districts; counties; home rule charter and statutory 
  7.25  cities; and towns to meet the costs they incur in addressing 
  7.26  year 2000 problems. 
  7.27     A loan may not be made until the year 2000 project office 
  7.28  of the department of administration certifies to the 
  7.29  commissioner of finance that the proposed use of the loan is 
  7.30  consistent with remediating a year 2000 problem.  A loan may not 
  7.31  be made after June 30, 2000.  
  7.32     The loans must be repaid in five equal annual installments 
  7.33  beginning one year after receipt of the loan.  Interest is 
  7.34  payable on the loan at the rate earned by the state on invested 
  7.35  treasurer's cash, as determined monthly by the commissioner of 
  7.36  finance.  Repayments must be deposited in the state employee 
  8.1   insurance reserve account in the special revenue fund. 
  8.2      This appropriation is available until June 30, 2000. 
  8.3      Sec. 12.  [BUDGET RESERVE.] 
  8.4      If the balance in the state employee insurance reserve 
  8.5   account in the special revenue fund is insufficient to meet all 
  8.6   demands on it during the period ending June 30, 2004, up to 
  8.7   $20,000,000 is appropriated from the budget reserve account in 
  8.8   the general fund to the commissioner of finance for transfer to 
  8.9   the state employee insurance reserve account in the special 
  8.10  revenue fund. 
  8.11     Sec. 13.  [EFFECTIVE DATE.] 
  8.12     Section 3 is effective the day following final enactment 
  8.13  and does not affect or apply to any lawsuit pending on the 
  8.14  effective date.  Sections 1, 2, 4, 5, 6, 7, and 9 are effective 
  8.15  the day following final enactment.