1.1                          A bill for an act 
  1.2             relating to economic development; regulating regional 
  1.3             development commissions; amending Minnesota Statutes 
  1.4             1996, sections 462.381; 462.383; 462.384, subdivision 
  1.5             5; 462.385; 462.386, subdivision 1; 462.387; 462.388; 
  1.6             462.389, subdivisions 1, 3, and 4; 462.39, 
  1.7             subdivisions 2 and 3; 462.391, subdivision 5, and by 
  1.8             adding subdivisions; 462.393; 462.394; 462.396; and 
  1.9             462.398; repealing Minnesota Statutes 1996, sections 
  1.10            462.384, subdivision 7; 462.385, subdivision 2; 
  1.11            462.389, subdivision 5; 462.391, subdivisions 1, 2, 3, 
  1.12            4, 6, 7, 8, and 9; and 462.392. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1996, section 462.381, is 
  1.15  amended to read: 
  1.16     462.381 [TITLE.] 
  1.17     Sections 462.381 to 462.398 may be cited as the "regional 
  1.18  development act ~~of 1969~~."  
  1.19     Sec. 2.  Minnesota Statutes 1996, section 462.383, is 
  1.20  amended to read: 
  1.21     462.383 [PURPOSE:  GOVERNMENT COOPERATION AND 
  1.22  COORDINATION.] 
  1.23     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
  1.24  finds that problems of growth and development in urban and rural 
  1.25  regions of the state so transcend the boundary lines of local 
  1.26  government units that no single unit can plan for their solution 
  1.27  without affecting other units in the region; ~~that various~~ 
  1.28  ~~multicounty planning activities conducted under various laws of~~ 
  1.29  ~~the United States are presently being conducted in an~~ 
  2.1   ~~uncoordinated manner~~ that coordination of multijurisdictional 
  2.2   activities is essential to the development and implementation of 
  2.3   effective policies and programs; that intergovernmental 
  2.4   cooperation ~~on a regional basis~~ is an effective means of pooling 
  2.5   the resources of local government to approach common problems; 
  2.6   and that the assistance of the state is needed to make the most 
  2.7   effective use of local, state, federal, and private programs in 
  2.8   serving the citizens of such urban and rural regions.  
  2.9      Subd. 2.  [BY CREATING REGIONAL COMMISSION.] It is the 
  2.10  purpose of sections 462.381 to 462.398 to ~~facilitate~~ 
  2.11  ~~intergovernmental cooperation and to insure the orderly and~~ 
  2.12  ~~harmonious coordination of state, federal, and local~~ 
  2.13  ~~comprehensive planning and development programs for the solution~~ 
  2.14  ~~of economic, social, physical, and governmental problems of the~~ 
  2.15  ~~state and its citizens by providing for the creation of regional~~ 
  2.16  ~~development commissions~~ authorize the establishment of regional 
  2.17  development commissions to work with and on behalf of local 
  2.18  units of government to develop plans or implement programs to 
  2.19  address economic, social, physical, and governmental concerns of 
  2.20  each region of the state.  The commissions may assist with, 
  2.21  develop, or implement plans or programs for individual local 
  2.22  units of government.  
  2.23     Sec. 3.  Minnesota Statutes 1996, section 462.384, 
  2.24  subdivision 5, is amended to read: 
  2.25     Subd. 5.  [DEVELOPMENT REGION, REGION.] "Development 
  2.26  region" or "region" means a geographic region composed of a 
  2.27  grouping of counties ~~embodied in an executive order of the~~ 
  2.28  ~~governor or~~ as ~~otherwise~~ established by sections 462.381 to 
  2.29  462.398.  
  2.30     Sec. 4.  Minnesota Statutes 1996, section 462.385, is 
  2.31  amended to read: 
  2.32     462.385 [DESIGNATION OF REGIONS; REGIONAL BOUNDARIES; 
  2.33  MODIFICATION.] 
  2.34     Subdivision 1.  [BY GOVERNOR'S ORDER; HEARINGS.] 
  2.35  Development regions for the state shall ~~be those regions so~~ 
  2.36  ~~designated by the governor by executive order.  The order shall~~ 
  3.1   ~~provide for public hearings within each proposed region after~~ 
  3.2   ~~which any county may request assignment to a region other than~~ 
  3.3   ~~that proposed by the order.  If a request for reassignment is~~ 
  3.4   ~~unacceptable to the commissioner, the county shall remain in the~~ 
  3.5   ~~originally designated region until the next session of the~~ 
  3.6   ~~legislature for its review and final assignment.~~ consist of the 
  3.7   following counties: 
  3.8      Region 1:  Kittson, Roseau, Marshall, Pennington, Red Lake, 
  3.9   Polk, and Norman. 
  3.10     Region 2:  Lake of the Woods, Beltrami, Mahnomen, 
  3.11  Clearwater, and Hubbard. 
  3.12     Region 3:  Koochiching, Itasca, St. Louis, Lake, Cook, 
  3.13  Aitkin, and Carlton. 
  3.14     Region 4:  Clay, Becker, Wilkin, Otter Tail, Grant, 
  3.15  Douglas, Traverse, Stevens, and Pope. 
  3.16     Region 5:  Cass, Wadena, Crow Wing, Todd, and Morrison. 
  3.17     Region 6E:  Kandiyohi, Meeker, Renville, and McLeod. 
  3.18     Region 6W:  Big Stone, Swift, Chippewa, Lac Qui Parle, and 
  3.19  Yellow Medicine. 
  3.20     Region 7E:  Mille Lacs, Kanabec, Pine, Isanti, and Chisago. 
  3.21     Region 7W:  Stearns, Benton, Sherburne, and Wright. 
  3.22     Region 8:  Lincoln, Lyon, Redwood, Pipestone, Murray, 
  3.23  Cottonwood, Rock, Nobles, and Jackson. 
  3.24     Region 9:  Sibley, Nicollet, LeSueur, Brown, Blue Earth, 
  3.25  Waseca, Watonwan, Martin, and Faribault. 
  3.26     Region 10:  Rice, Goodhue, Wabasha, Steele, Dodge, Olmsted, 
  3.27  Winona, Freeborn, Mower, Fillmore, and Houston. 
  3.28     Region 11:  Anoka, Hennepin, Ramsey, Washington, Carver, 
  3.29  Scott, and Dakota. 
  3.30     ~~Subd. 2.  [EXISTING DEVELOPMENT DISTRICT BOUNDARIES.] The~~ 
  3.31  ~~boundaries of any economic development district established~~ 
  3.32  ~~under Section 403 of the United States Public Works and Economic~~ 
  3.33  ~~Development Act of 1965 shall not be modified without the~~ 
  3.34  ~~approval of an affected county and the development district.~~ 
  3.35     Subd. 3.  [ONGOING BOUNDARY STUDIES; CHANGES.] ~~The~~ 
  3.36  ~~commissioner shall conduct continuous studies and analysis of~~ 
  4.1   ~~the boundaries of regions and shall make recommendations for~~ 
  4.2   ~~their modification where necessary.~~  Modification of regional 
  4.3   boundaries may be initiated by a county~~, a commission, or by the~~ 
  4.4   ~~commissioner and will be accomplished in accordance with this~~ 
  4.5   ~~section as in the case of initial designation~~ requesting 
  4.6   assignment to a region other than that within which it is 
  4.7   designated.  If a request for reassignment is unacceptable to 
  4.8   the commission whose boundaries would be modified, the county 
  4.9   requesting reassignment shall remain in the originally 
  4.10  designated region until the legislature determines the final 
  4.11  assignment. 
  4.12     Sec. 5.  Minnesota Statutes 1996, section 462.386, 
  4.13  subdivision 1, is amended to read: 
  4.14     Subdivision 1.  [EXCEPTION, WORKING AGREEMENTS.] All 
  4.15  coordination, planning, and development regions assisted or 
  4.16  created by the state of Minnesota or pursuant to federal 
  4.17  legislation shall conform to the regions ~~designated by the~~ 
  4.18  ~~executive order~~ except where, after review and approval by the 
  4.19  ~~commissioner~~ governor or designee, nonconformance is clearly 
  4.20  justified.  The ~~commissioner~~ governor or designee shall develop 
  4.21  working agreements with state and federal departments and 
  4.22  agencies to insure conformance with this subdivision. 
  4.23     Sec. 6.  Minnesota Statutes 1996, section 462.387, is 
  4.24  amended to read: 
  4.25     462.387 [REGIONAL DEVELOPMENT COMMISSIONS; ESTABLISHMENT.] 
  4.26     Subdivision 1.  [PETITION.] Any combination of counties or 
  4.27  municipalities representing a majority of the population of the 
  4.28  region for which a commission is proposed may petition the 
  4.29  ~~commissioner~~ governor or designee by formal resolution setting 
  4.30  forth its desire to establish, and the need for, the 
  4.31  establishment of a regional development commission.  For 
  4.32  purposes of this section the population of a county does not 
  4.33  include the population of a municipality within the county. 
  4.34     Subd. 1a.  [OPERATING COMMISSION.] Regional development 
  4.35  commissions shall be those organizations operating pursuant to 
  4.36  sections 462.381 to 462.398 which were formed by formal 
  5.1   resolution of local units of government and those which may 
  5.2   petition by formal resolution to establish a regional 
  5.3   development commission. 
  5.4      Subd. 3.  [ESTABLISHMENT.] Upon receipt of a petition as 
  5.5   provided in subdivision 1 a regional development commission 
  5.6   shall be established by the ~~commissioner~~ governor or designee 
  5.7   and ~~the notification of~~ all local government units within the 
  5.8   region for which the commission is proposed shall be notified.  
  5.9   The notification shall be made within 60 days of 
  5.10  the ~~commissioner's~~ governor's receipt of a petition under 
  5.11  subdivision 1. 
  5.12     Subd. 4.  [SELECTION OF MEMBERSHIP.] The ~~commissioner~~ 
  5.13  governor or designee shall call together each of the membership 
  5.14  classifications except citizen groups, defined in section 
  5.15  462.388, within 60 days of the establishment of a regional 
  5.16  development commission for the purpose of selecting the 
  5.17  commission membership. 
  5.18     Subd. 5.  [NAME OF COMMISSION.] The name of the 
  5.19  organization shall be determined by formal resolution of the 
  5.20  commission. 
  5.21     Sec. 7.  Minnesota Statutes 1996, section 462.388, is 
  5.22  amended to read: 
  5.23     462.388 [COMMISSION MEMBERSHIP.] 
  5.24     Subdivision 1.  [REPRESENTATION OF VARIOUS MEMBERS.] A 
  5.25  commission shall consist of the following members: 
  5.26     (1) one member from each county board of every county in 
  5.27  the development region; 
  5.28     (2) one additional county board member from each county of 
  5.29  over 100,000 population; 
  5.30     (3) the town clerk, town treasurer, or one member of a town 
  5.31  board of supervisors from each county containing organized 
  5.32  towns; 
  5.33     (4) one additional member selected by the county board of 
  5.34  any county containing no townships; 
  5.35     (5) one mayor or council member from a municipality of 
  5.36  under 10,000 population from each county, selected by the mayors 
  6.1   of all such municipalities in the county; 
  6.2      (6) one mayor or council member from each municipality of 
  6.3   over 10,000 in each county; 
  6.4      (7) two school board members elected by a majority of the 
  6.5   chairs of school boards in the development region; 
  6.6      (8) one member from each council of governments; 
  6.7      (9) one member appointed by each native American tribal 
  6.8   council located in each region; and 
  6.9      (10) citizens representing public interests within the 
  6.10  region including members of minority groups to be selected after 
  6.11  adoption of the bylaws of the commission~~; and~~ 
  6.12     ~~(10) the chair, who shall be selected by the commission~~. 
  6.13     Subd. 2.  [TERMS, SELECTION METHOD.] The terms of office 
  6.14  and method of selection of members ~~other than the chair~~ shall be 
  6.15  provided in the bylaws of the commission ~~which shall not be~~ 
  6.16  ~~inconsistent with the provisions of subdivision 1~~.  The 
  6.17  commission shall adopt rules setting forth its procedures. 
  6.18     Subd. 5.  [PER DIEM; BOARD MEMBERS.] Members of the 
  6.19  regional commission may receive a per diem of not over ~~$35~~ $50, 
  6.20  the amount to be determined by the commission, and shall be 
  6.21  reimbursed for their reasonable expenses as determined by the 
  6.22  commission.  The commission ~~shall~~ may provide for the election 
  6.23  of a board of directors~~, who need not be commission members,~~ and 
  6.24  provide, at its discretion, for a per diem of not over ~~$35~~ $50 a 
  6.25  day for meetings of the board and expenses.  A member of the 
  6.26  board of directors who is a member of the commission shall 
  6.27  receive only the per diem payable to board members when meetings 
  6.28  of the board of directors and the commission are held on the 
  6.29  same day. 
  6.30     Sec. 8.  Minnesota Statutes 1996, section 462.389, 
  6.31  subdivision 1, is amended to read: 
  6.32     Subdivision 1.  [CHAIR.] The chair of the commission shall 
  6.33  have been a resident of the region for at least one year and 
  6.34  shall be a person experienced in the field of government 
  6.35  affairs.  The chair shall preside at the meetings of the 
  6.36  commission and board of directors~~, appoint all employees~~ 
  7.1   ~~thereof, subject to the approval of the commission,~~ and be 
  7.2   responsible for carrying out all policy decisions of the 
  7.3   commission.  The chair's expense allowances shall be fixed by 
  7.4   the commission.  The term of the first chair shall be one year, 
  7.5   and the chair shall serve until a successor is selected and 
  7.6   qualifies.  At the expiration of the term of the first chair, 
  7.7   the chair shall be elected from the membership of the commission 
  7.8   according to procedures established in its bylaws.  
  7.9      Sec. 9.  Minnesota Statutes 1996, section 462.389, 
  7.10  subdivision 3, is amended to read: 
  7.11     Subd. 3.  [EXECUTIVE DIRECTOR.] ~~Upon the recommendation of~~ 
  7.12  ~~the chair,~~ The commission may appoint an executive director to 
  7.13  serve as the chief administrative officer.  The director may be 
  7.14  chosen from among the citizens of the nation at large, and shall 
  7.15  be selected on the basis of training and experience in the field 
  7.16  of government affairs. 
  7.17     Sec. 10.  Minnesota Statutes 1996, section 462.389, 
  7.18  subdivision 4, is amended to read: 
  7.19     Subd. 4.  [EMPLOYEES.] The commission may ~~prepare, in~~ 
  7.20  ~~consultation with the state commissioner of employee relations,~~ 
  7.21  ~~and may~~ adopt a ~~merit~~ personnel system for its officers and 
  7.22  employees including terms and conditions for the employment, the 
  7.23  fixing of compensation, their classification, benefits, and the 
  7.24  filing of performance and fidelity bonds, and such policies of 
  7.25  insurance as it may deem advisable, the premiums for which, 
  7.26  however, shall be paid for by the commission.  Officers and 
  7.27  employees are public employees within the meaning of chapter 
  7.28  353.  The commission shall make the employer's contributions to 
  7.29  pension funds of its employees.  
  7.30     Sec. 11.  Minnesota Statutes 1996, section 462.39, 
  7.31  subdivision 2, is amended to read: 
  7.32     Subd. 2.  [~~FEDERAL~~ REGIONAL PROGRAMS.] The commission is 
  7.33  ~~the~~ authorized ~~agency~~ to receive ~~state and federal grants~~ public 
  7.34  and private funds for ~~regional~~ purposes ~~from the following~~ 
  7.35  ~~programs:~~ 
  7.36     ~~(1) Section 403 of the Public Works and Economic~~ 
  8.1   ~~Development Act of 1965 (economic development districts);~~ 
  8.2      ~~(2) Section 701 of the Housing Act of 1954, as amended~~ 
  8.3   ~~(multicounty comprehensive planning);~~ 
  8.4      ~~(3) Omnibus Crime Control Act of 1968;~~ 
  8.5      ~~and for the following to the extent feasible as determined~~ 
  8.6   ~~by the governor:~~ 
  8.7      ~~(a) Economic Opportunity Act of 1964;~~ 
  8.8      ~~(b) Comprehensive Health Planning Act of 1965;~~ 
  8.9      ~~(c) Federal regional manpower planning programs;~~ 
  8.10     ~~(d) Resource, conservation, and development districts; or~~ 
  8.11     ~~(e) Any state and federal programs providing funds~~ 
  8.12  ~~for~~ including, but not limited to program administration, 
  8.13  multicounty planning, coordination, and development 
  8.14  ~~purposes~~. ~~The director shall, where consistent with state and~~ 
  8.15  ~~federal statutes and regulations, review applications for all~~ 
  8.16  ~~state and federal regional planning and development grants to a~~ 
  8.17  ~~commission.~~ 
  8.18     Sec. 12.  Minnesota Statutes 1996, section 462.39, 
  8.19  subdivision 3, is amended to read: 
  8.20     Subd. 3.  [PLANNING.] The commission ~~shall~~ may prepare and 
  8.21  ~~adopt~~ submit for adoption, after appropriate study and such 
  8.22  public hearings as may be necessary, ~~a~~ comprehensive ~~development~~ 
  8.23  ~~plan~~ plans for local units of government, individually or 
  8.24  collectively, within the region.  ~~The plan shall~~ Plans may 
  8.25  consist of ~~a compilation of~~ policy statements, goals, standards, 
  8.26  programs, and maps prescribing guides for ~~an~~ orderly ~~and~~ 
  8.27  ~~economic~~ development~~, public and private, of the region.  The~~ 
  8.28  ~~comprehensive development plan~~ within the jurisdiction subject 
  8.29  to the plan.  The plans shall recognize and incorporate planning 
  8.30  principles which encompass physical, social, or economic needs 
  8.31  of the region~~, and those future developments which will have an~~ 
  8.32  ~~impact on the entire region including but not limited to such~~ 
  8.33  ~~matters as land use, parks and open space land needs, access to~~ 
  8.34  ~~direct sunlight for solar energy systems, the necessity for and~~ 
  8.35  ~~location of airports, highways, transit facilities, public~~ 
  8.36  ~~hospitals, libraries, schools, public and private, housing, and~~ 
  9.1   ~~other public buildings~~.  In preparing ~~the~~ development ~~plan~~ plans 
  9.2   the commission shall use to the maximum extent feasible the 
  9.3   resources studies and data available from other planning 
  9.4   agencies within the region, including counties, municipalities, 
  9.5   special districts, and subregional planning agencies, and it 
  9.6   shall utilize the resources of ~~the director~~ state agencies to 
  9.7   the same purpose.  ~~No development plan or portion thereof for~~ 
  9.8   ~~the region shall be adopted by the commission until it has been~~ 
  9.9   ~~submitted to the director for review and comment and a period of~~ 
  9.10  ~~60 days has elapsed after such submission.  When a development~~ 
  9.11  ~~plan has been adopted, the commission shall distribute it to all~~ 
  9.12  ~~local government units within the region.~~ 
  9.13     Sec. 13.  Minnesota Statutes 1996, section 462.391, is 
  9.14  amended by adding a subdivision to read: 
  9.15     Subd. 1a.  [REVIEW OF LOCAL PLANS.] The commission may 
  9.16  review and provide comments and recommendations on local plans 
  9.17  or development proposals which in the judgment of the commission 
  9.18  have a substantial effect on regional development.  Local units 
  9.19  of government may request that a regional commission review, 
  9.20  comment, and provide advisory recommendations on local plans or 
  9.21  development proposals. 
  9.22     Sec. 14.  Minnesota Statutes 1996, section 462.391, is 
  9.23  amended by adding a subdivision to read: 
  9.24     Subd. 2a.  [STAFF SERVICES.] To avoid duplication of staff 
  9.25  for various regional bodies assisted by federal or state 
  9.26  government, the commission may provide basic administrative, 
  9.27  research, and planning services for all regional planning and 
  9.28  development bodies.  The commissions may contract to obtain or 
  9.29  perform services with state agencies, for-profit or nonprofit 
  9.30  entities, subdistricts organized as the result of federal or 
  9.31  state programs, councils of governments organized under section 
  9.32  471.59, or any other law, and with local governments. 
  9.33     Sec. 15.  Minnesota Statutes 1996, section 462.391, is 
  9.34  amended by adding a subdivision to read: 
  9.35     Subd. 3a.  [DATA AND INFORMATION.] The commission may be 
  9.36  designated as a regional data center providing data collection, 
 10.1   storage, analysis, and dissemination to be used by it and other 
 10.2   governmental and private users, and may accept gifts or grants 
 10.3   to provide this service. 
 10.4      Sec. 16.  Minnesota Statutes 1996, section 462.391, 
 10.5   subdivision 5, is amended to read: 
 10.6      Subd. 5.  [~~URBAN AND RURAL~~ RESEARCH.] Where studies have 
 10.7   not been otherwise authorized by law the commission may study 
 10.8   the feasibility of programs ~~relating~~ including, but not limited 
 10.9   to, water, land use, economic development, ~~minority problems~~ 
 10.10  housing, demographics, cultural issues, governmental ~~problems~~ 
 10.11  issues, human ~~and~~ services, natural resources, 
 10.12  communication, technology, transportation, and other subjects of 
 10.13  concern to the citizens of the region, may institute 
 10.14  demonstration projects in connection therewith, and may enter 
 10.15  into contracts or accept gifts or grants for such purposes as 
 10.16  otherwise authorized in sections 462.381 to 462.398.  
 10.17     Sec. 17.  Minnesota Statutes 1996, section 462.391, is 
 10.18  amended by adding a subdivision to read: 
 10.19     Subd. 11.  [PROGRAM OPERATION.] Upon approval of the 
 10.20  appropriate authority from local, state, and federal government 
 10.21  units, commissions may be regarded as general purpose units of 
 10.22  government to receive funds and operate programs on a regional 
 10.23  or subregional basis to provide economies of scale or to enhance 
 10.24  program efficiency. 
 10.25     Sec. 18.  Minnesota Statutes 1996, section 462.391, is 
 10.26  amended by adding a subdivision to read: 
 10.27     Subd. 12.  [PROPERTY OWNERSHIP.] A commission may buy, 
 10.28  lease, acquire, own, hold, improve, and use real or personal 
 10.29  property or an interest in property, wherever located in the 
 10.30  state for purposes of housing the administrative office of the 
 10.31  regional commission. 
 10.32     Sec. 19.  Minnesota Statutes 1996, section 462.391, is 
 10.33  amended by adding a subdivision to read: 
 10.34     Subd. 13.  [PROPERTY DISPOSITION.] A commission may sell, 
 10.35  convey, mortgage, create a security interest in, lease, 
 10.36  exchange, transfer, or dispose of all or part of its real or 
 11.1   personal property or an interest in property, wherever located 
 11.2   in the state. 
 11.3      Sec. 20.  Minnesota Statutes 1996, section 462.393, is 
 11.4   amended to read: 
 11.5      462.393 [ANNUAL REPORT TO UNITS, PUBLIC, GOVERNOR, 
 11.6   LEGISLATURE.] 
 11.7      Subdivision 1.  [CONTENTS.] On or before ~~August~~ September 1 
 11.8   of each year, the commission shall prepare a report for the 
 11.9   governmental units, the public within the region, the 
 11.10  legislature and the governor.  The report shall include: 
 11.11     (1) A statement of the commission's receipts and 
 11.12  expenditures by category since the preceding report; 
 11.13     (2) A detailed budget for the year in which the report is 
 11.14  filed and a tentative budget for the following year including an 
 11.15  outline of its program for such period; 
 11.16     (3) A description of any ~~comprehensive~~ plan adopted in 
 11.17  whole or in part for the region; 
 11.18     (4) Summaries of any studies and the recommendations 
 11.19  resulting therefrom made for the region; 
 11.20     (5) A ~~listing of all applications for federal grants or~~ 
 11.21  ~~loans made by governmental units within the region together with~~ 
 11.22  ~~the action taken by the commission in relation thereto~~ summary 
 11.23  of significant accomplishments; 
 11.24     (6) A listing of plans of local governmental units 
 11.25  submitted to the region, and actions taken in relationship 
 11.26  thereto; 
 11.27     (7) Recommendations of the commission regarding federal and 
 11.28  state programs, cooperation, funding, and legislative needs; and 
 11.29     (8) A summary of any audit report made during the previous 
 11.30  year ~~by the state auditor~~ relative to the commission.  
 11.31     Subd. 2.  [ASSESSMENT EVERY 5 YEARS.] In ~~1981~~ 2001 and 
 11.32  every five years thereafter the commission shall review its 
 11.33  activities and issue a report assessing its performance in 
 11.34  fulfilling the purposes of the regional development act ~~of~~ 
 11.35  ~~1969~~.  The report shall ~~state~~ address whether the existence of 
 11.36  the commission is in the public welfare and interest.  ~~The~~ 
 12.1   ~~report shall be included in the report required by subdivision 1.~~
 12.2      Sec. 21.  Minnesota Statutes 1996, section 462.394, is 
 12.3   amended to read: 
 12.4      462.394 [CITIZEN PARTICIPATION AND ADVISORY COMMITTEES.] 
 12.5      The commission may appoint advisory committees of 
 12.6   interested and affected citizens to assist in the review of 
 12.7   plans, programs, and other matters referred for review by the 
 12.8   commission.  Whenever a special advisory committee is required 
 12.9   by any federal or state regional program the commission ~~chair~~ 
 12.10  shall, as far as practical, appoint such committees as advisory 
 12.11  groups to the commission.  Members of the advisory committees 
 12.12  shall serve without compensation but shall be reimbursed for 
 12.13  their reasonable expenses as determined by the commission.  
 12.14     Sec. 22.  Minnesota Statutes 1996, section 462.396, is 
 12.15  amended to read: 
 12.16     462.396 [~~GRANTS; LEVIES; BUDGET; ACCOUNTS; AUDITS; BIDS;~~ 
 12.17  ~~DEPOSITS~~ FINANCIAL.] 
 12.18     Subdivision 1.  [GRANTMAKING, TAX LEVY.] The ~~director~~ 
 12.19  governor and the legislature shall determine the amount of state 
 12.20  assistance and designate an agency to make grants to any 
 12.21  commission created under sections 462.381 to 462.398 from 
 12.22  appropriations made available for those purposes~~, provided a~~ 
 12.23  ~~work program is submitted acceptable to the director~~.  Any 
 12.24  regional commission may levy a tax on all taxable property in 
 12.25  the region to provide money for the purposes of sections 462.381 
 12.26  to 462.398. 
 12.27     Subd. 2.  [BUDGET; HEARING; LEVY LIMITS.] On or before 
 12.28  August 20 each year, the commission shall submit its proposed 
 12.29  budget for the ensuing calendar year showing anticipated 
 12.30  receipts, disbursements, and ad valorem tax levy with a written 
 12.31  notice of the time and place of the public hearing on the 
 12.32  proposed budget to each county auditor and municipal clerk 
 12.33  within the region and those town clerks who in advance have 
 12.34  requested a copy of the budget and notice of public hearing.  On 
 12.35  or before September 15 each year, the commission shall adopt, 
 12.36  after a public hearing held not later than September 15, a 
 13.1   budget covering its anticipated receipts and disbursements for 
 13.2   the ensuing year and shall decide upon the total amount 
 13.3   necessary to be raised from ad valorem tax levies to meet its 
 13.4   budget.  After adoption of the budget and no later than 
 13.5   September 15, the secretary of the commission shall certify to 
 13.6   the auditor of each county within the region the county share of 
 13.7   the tax, which shall be an amount bearing the same proportion to 
 13.8   the total levy agreed on by the commission as the net tax 
 13.9   capacity of the county bears to the net tax capacity of the 
 13.10  region.  For taxes levied in ~~1990 and thereafter~~ 1997, the 
 13.11  maximum amounts of levies made for the purposes of sections 
 13.12  462.381 to 462.398 are the ~~following amounts, less the sum of~~ 
 13.13  ~~regional planning grants from the commissioner to that region:~~  
 13.14  ~~for Region 1, $180,337; for Region 2, $150,000; for Region 3,~~ 
 13.15  ~~$353,110; for Region 5, $195,865; for Region 6E, $197,177; for~~ 
 13.16  ~~Region 6W, $150,000; for Region 7E, $158,653; for Region 8,~~ 
 13.17  ~~$206,107; for Region 9, $343,572~~ greater of (1) $200,000; or (2) 
 13.18  the amount levied by the commission for the 1996 levy year.  For 
 13.19  taxes levied in 1998 and thereafter, the maximum amount that may 
 13.20  be levied by each commission is 103 percent of the amount of the 
 13.21  previous year's levy.  The auditor of each county in the region 
 13.22  shall add the amount of any levy made by the commission within 
 13.23  the limits imposed by this subdivision to other tax levies of 
 13.24  the county for collection by the county treasurer with other 
 13.25  taxes.  When collected the county treasurer shall make 
 13.26  settlement of the taxes with the commission in the same manner 
 13.27  as other taxes are distributed to political subdivisions. 
 13.28     Subd. 3.  [GIFTS, GRANTS, LOANS.] The commission is a 
 13.29  special purpose unit of government which may accept gifts, apply 
 13.30  for and use grants or loans of money or other property from the 
 13.31  United States, the state, or any person, local or governmental 
 13.32  body for any commission purpose and may enter into agreements 
 13.33  required in connection therewith and may hold, use, and dispose 
 13.34  of such moneys or property in accordance with the terms of the 
 13.35  gift, grant, loan, agreement, or contract relating thereto.  
 13.36     For purposes of receipt of state or federal funds for 
 14.1   community and economic development, regional commissions shall 
 14.2   be considered general purpose units of government. 
 14.3      Subd. 4.  [ACCOUNTING; CHECKS; ANNUAL AUDIT.] The 
 14.4   commission shall keep an accurate account of its receipts and 
 14.5   disbursement.  Disbursements of funds of the commission shall be 
 14.6   made by check signed by the chair or vice-chair or secretary of 
 14.7   the commission and countersigned by the executive director or an 
 14.8   authorized deputy thereof after such auditing and approval of 
 14.9   the expenditure as may be provided by rules of the commission.  
 14.10  The state auditor ~~shall~~ may audit the books and accounts of the 
 14.11  commission once each year, or as often as funds and personnel of 
 14.12  the state auditor permit.  The commission shall pay to the state 
 14.13  the total cost and expenses of such examination, including the 
 14.14  salaries paid to the auditors while actually engaged in making 
 14.15  such examination.  The general fund shall be credited with all 
 14.16  collections made for any such examination.  In lieu of an annual 
 14.17  audit by the state auditor, the commission ~~may~~ shall contract 
 14.18  with a certified public accountant for the annual audit of the 
 14.19  books and accounts of the commission.  If a certified public 
 14.20  accountant performs the audit, the commission shall send a copy 
 14.21  of the audit to the state auditor. 
 14.22     Subd. 5.  [BID LAW.] Every contract of the commission for 
 14.23  the purchase of merchandise, materials, or supplies shall be let 
 14.24  in accordance with the provisions of section 471.345.  
 14.25     Subd. 6.  [DEPOSITORIES.] The commission shall from time to 
 14.26  time designate one or more national or state banks, or trust 
 14.27  companies authorized to do a banking business, as official 
 14.28  depositories for money of the commission, and thereupon shall 
 14.29  require the treasurer to deposit all or part of such money in 
 14.30  such bank or banks.  Such designation shall be in writing and 
 14.31  set forth all the terms and conditions upon which the deposits 
 14.32  are made, and shall be signed by the chair and secretary, and 
 14.33  made a part of the minutes of the commission.  Any bank or trust 
 14.34  company so designated shall qualify as a depository by 
 14.35  furnishing a corporate surety bond or collateral as required by 
 14.36  chapter 118, and shall thereafter, as long as money of the 
 15.1   commission is on deposit therein, maintain such bond or 
 15.2   collateral and shall be required to secure any deposit, insofar 
 15.3   as it is insured under federal law, as provided in section 
 15.4   118A.03. 
 15.5      Sec. 23.  Minnesota Statutes 1996, section 462.398, is 
 15.6   amended to read: 
 15.7      462.398 [TERMINATION OF COMMISSION.] 
 15.8      Subdivision 1.  [PETITION; POPULATION.] Any combination of 
 15.9   counties or municipalities representing a majority of the 
 15.10  population of the region for which a commission exists may 
 15.11  petition the director by formal resolution stating that the 
 15.12  existence of the commission is no longer in the public welfare 
 15.13  and interest and is not needed to accomplish the purposes of the 
 15.14  regional development act ~~of 1969~~.  For purposes of this section 
 15.15  the population of a county does not include the population of a 
 15.16  municipality within the county.  Any formal resolution adopted 
 15.17  by the governing body of a county or municipality for the 
 15.18  termination of a commission shall be effective for a period of 
 15.19  one year for the purpose of determining the requisite population 
 15.20  of the region needed to petition the ~~director~~ governor. 
 15.21     Subd. 2.  [HEARINGS; RECOMMENDATION, TERMINATION DATE.] 
 15.22  Within 35 days of the ~~receipt~~ filing of the petition, the 
 15.23  ~~director~~ governor or designee shall fix a time and place within 
 15.24  the region for a hearing.  The director shall give notice of the 
 15.25  hearing by publication once each week for two successive weeks 
 15.26  before the date of the hearing in a legal newspaper in each of 
 15.27  the counties which the commission represents.  The hearing shall 
 15.28  be conducted by members of the commission.  If the commission 
 15.29  determines that the existence of the commission is no longer in 
 15.30  the public welfare and interest and that it is not needed to 
 15.31  accomplish the purposes of the regional development act ~~of 1969~~, 
 15.32  the commission shall recommend to the ~~director~~ governor or 
 15.33  designee that the ~~director~~ governor or designee terminate the 
 15.34  commission.  Within 60 days after receipt of the recommendation, 
 15.35  the director shall terminate the commission by giving notice of 
 15.36  the termination to all government units within the region for 
 16.1   which the commission was established.  Unless otherwise provided 
 16.2   by this subdivision, the hearing shall be in accordance with 
 16.3   sections 14.001 to 14.69. 
 16.4      Subd. 3.  [30 MONTHS BETWEEN PETITIONS.] The 
 16.5   ~~director~~ governor or designee shall not accept a petition for 
 16.6   termination more than once in 30 months for each regional 
 16.7   development commission. 
 16.8      Sec. 24.  [REPEALER.] 
 16.9      Minnesota Statutes 1996, sections 462.384, subdivision 7; 
 16.10  462.385, subdivision 2; 462.389, subdivision 5; 462.391, 
 16.11  subdivisions 1, 2, 3, 4, 6, 7, 8, and 9; and 462.392, are 
 16.12  repealed.