Page 82, line 17, delete "enlarge" and insert "remodel, other than necessary for maintenance and upkeep,"

Pages 83 and 84, delete section 69

Page 87, delete section 75

Page 87, line 14, delete everything after "1.39;" and insert "and 1.40, are repealed effective June 30, 1998. Minnesota Statutes 1996, sections 84B.11; and 115A.9523; and"

Page 87, delete lines 16 and 17

Page 87, after line 19, insert:

"Minnesota Rules, part 7009.0060, is repealed."

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 11, after "2;" insert "85.015, by adding a subdivision;"

Page 1, line 17, delete everything after the semicolon

Page 1, delete line 18

Page 1, line 19, delete "subdivision;" and insert "116.07, by adding a subdivision;"

Page 1, line 27, delete "94;" and after "115;" insert "116;"

Page 1, line 30, after "84B.11;" insert "and" and delete "and 116P.05, subdivision 1;"

Page 1, line 31, before the period, insert "; Minnesota Rules, part 7009.0060"

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

subdivision 5; 14.131; 16A.10, subdivision 2; 16A.11, subdivisions 1, 3, and 3c; 16A.1285, subdivision 3; 16A.129, subdivision 3; 16A.15, subdivision 3; 16B.19, subdivision 2b; 16B.24, subdivision 5; 16B.35, by adding a subdivision; 16B.465, subdivision 3; 16B.70, subdivision 2; 176.611, by adding subdivisions; 240A.08; 327.33, subdivision 2; 327B.04, subdivision 7; 349.163, subdivision 4; 356.865, subdivision 3; 363.073, subdivision 1; and 473.556, subdivision 16; proposing coding for new law in Minnesota Statutes, chapters 14; 16A; 16B; 43A; 260; and 465; proposing coding for new law as Minnesota Statutes, chapter 237A; repealing Minnesota Statutes 1996, sections 10A.21; 15.95; 15.96; 16B.40; 16B.41; 16B.42; 16B.43; and 16B.58, subdivision 8.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [STATE GOVERNMENT APPROPRIATIONS.]

The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another fund named, to the agencies and for the purposes specified in this act, to be available for the fiscal years indicated for each purpose. The figures "1998" and "1999," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1998, or June 30, 1999, respectively.

BIENNIAL

1998 1999 TOTAL

General $407,529,000 $296,519,000 $704,048,000

StateGovernment Special Revenue 11,160,000 12,180,000 23,340,000

Environmental 224,000 229,000 453,000

Solid Waste Fund 445,000 450,000 895,000

Highway User Tax Distribution 2,044,000 2,091,000 4,135,000

Trunk Highway 37,000 37,000 74,000

Workers' Compensation 4,207,000 4,295,000 8,502,000

TOTAL $425,646,000 $315,801,000 $741,447,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. LEGISLATURE

Subdivision 1. Total Appropriation 53,078,000 55,914,000

General 53,041,000 55,877,000

Trunk Highway 37,000 37,000

Subd. 2. Senate 17,407,000 17,407,000

Subd. 3. House of Representatives 23,616,000 25,801,000

Subd. 4. Legislative Coordinating Commission 12,055,000 12,706,000

General 12,018,000 12,669,000

Trunk Highway 37,000 37,000

$4,754,000 the first year and $5,362,000 the second year are for the office of the revisor of statutes.

$1,030,000 the first year and $1,052,000 the second year are for the legislative reference library.

$4,615,000 the first year and $4,622,000 the second year are for the office of the legislative auditor.

$10,000 is for the "We the People. . . Project Citizen Program." The appropriation is available until June 30, 1999.

$16,000 for the biennium is added to the base to provide additional funding for the legislative coordinating commission to contract for sign language interpreter services for meetings in Minnesota with legislators.

As of July 1, 1998, the house and senate public information offices must be combined into one office under the jurisdiction of the legislative coordinating commission. The appropriations to the house and senate are reduced by the amounts attributable to these offices in the second year, and 75 percent of the amount of these reductions in house and senate appropriations is appropriated to the legislative coordinating commission.

During the biennium ending June 30, 1999, no more than eight full-time legislative staff positions may be used in connection with production and distribution of televised coverage of legislative proceedings.

At least five percent of the funds allocated for legislative television must be used to provide videotapes of legislative floor sessions and committee hearings for distribution as educational materials.

Staff responsible for legislative television shall consider regularly scheduled late night rebroadcasts of floor sessions and committee hearings.

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR 3,821,000 3,874,000

Sec. 4. STATE AUDITOR 7,737,000 7,953,000

Sec. 5. STATE TREASURER 2,070,0002,134,000

Sec. 6. ATTORNEY GENERAL 27,233,000 27,896,000

General 24,811,000 25,391,000

State Government

Special Revenue 1,849,000 1,924,000

Environmental 128,000 131,000

Solid Waste Fund 445,000 450,000

$25,000 is for the attorney general to continue a study of gender equity in athletics.

Agencies receiving legal services under Minnesota Statutes, section 8.15, are required to pay the full hourly rate established under Minnesota Statutes, section 8.15, subdivision 1.

Sec. 7. SECRETARY OF STATE 6,103,0005,888,000

Sec. 8. BOARD OF PUBLIC DISCLOSURE 593,000 483,000

The board shall not adopt any new administrative rules governing the provisions outlined in Minnesota Rules, chapter 4500 until after February 1, 1999.

Sec. 9. INVESTMENT BOARD 2,163,0002,247,000

Sec. 10. ADMINISTRATIVE HEARINGS 4,107,000 4,195,000

This appropriation is from the workers' compensation special compensation fund for considering workers' compensation claims.

Sec. 11. OFFICE OF STRATEGIC AND LONG-RANGE PLANNING 4,723,000 4,727,000

$75,000 the first year is to develop the strategic plan for economic policy.

$250,000 each year is for planning and technology grants to counties and municipalities that elect to prepare community-based plans. The appropriation is available until expended.

$250,000 each year is for statewide grants to implement teen courts.

costs of this network, and report its findings to the legislature by February 15, 1998. No steam service facility of a baseload capacity of over 100,000 pounds of steam per hour may be constructed, reconstructed, enhanced, or expanded by a public authority within those cities between the Lowry Avenue N.E. bridge crossing the Mississippi River in Minneapolis and the I-35E bridge crossing the Mississippi River between St. Paul and Lilydale until the end of the 1998 legislative session.

Sec. 12. ADMINISTRATION

Subdivision 1. Total Appropriation 47,803,000 42,742,000

General 38,892,000 32,886,000

State Government

Special Revenue 8,911,000 9,856,000

The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.

Subd. 2. Operations Management

3,607,000 3,402,000

$250,000 is for prescription drug contracting activities.

During the biennium ending June 30, 1999, for any executive agency contract that is subject to Minnesota Statutes, section 363.073, the commissioner shall ensure, before the agency enters into the contract, that the company to receive the contract has a written plan to recruit Minnesota welfare recipients to fill vacancies in entry level positions, if the company has entry level employees in Minnesota.

Subd. 3. Intertechnologies Group

10,422,000 11,615,000

General 1,511,000 1,759,000

State Government

Special Revenue 8,911,000 9,856,000

The appropriation from the special revenue fund is for recurring costs of 911 emergency telephone service.

Subd. 4. Facilities Management

$67,000 each year is to offset foregone profits that the commissioner would realize from vending machine operations in the capitol complex if the department operated these machines.

The commissioner of administration shall report to the legislature by January 15, 1998, on the desirability of funding state agency rent costs by making one direct appropriation to the commissioner of administration rather than by having each state agency pay rent.

The commissioner of administration shall replace the portrait of Governor Rudy Perpich that currently is displayed on the ground floor of the State Capitol with the portrait of Rudy and Lola Perpich that currently is displayed at the Minnesota Historical Society.

The commissioner shall buy the building in Ely currently used by the department of revenue. $650,000 is appropriated for the purchase.

$1,035,000 in fiscal year 1998 is to predesign, design, construct, furnish, and equip the renovation of the capitol cafeteria and related spaces. The appropriation is available until June 30, 1999, and is contingent upon approval of the council on disability.

$5,187,000 the first year and $5,249,000 the second year are for office space costs of the legislature and veterans organizations, for ceremonial space, and for statutorily free space.

$20,000 is to place a bust of Nellie Stone Johnson in the State Capitol Building.

Subd. 5. Administrative Management

2,407,000 2,462,000

Subd. 6. Technology Management

12,993,000 11,001,000

$23,000,000 for the biennium is for modification of state business systems to address year 2000 changes. $8,000,000 is placed in a contingent account and is available only upon approval of the governor, after consultation with the legislative advisory commission. The commissioner shall report to the legislature by December 15, 1997, on progress of the project.

Subd. 7. Management Analysis

584,000 658,000

Subd. 8. Public Broadcasting

4,314,000 3,964,000

$1,450,000 the first year and $1,450,000 the second year are for matching grants for public television. Public television grant recipients shall give special emphasis to children's programming. In addition, public television grant recipients shall promote program and outreach initiatives that attempt to reduce youth violence in our communities.

$300,000 the first year and $300,000 the second year is added to the public television matching grants category in order to assist public television grant recipients in their efforts to expand locally originated programming. These funds shall be used to help public television grant recipients develop and promote new programs that will increase literacy, reduce youth violence, and promote public affairs and other educational program initiatives.

$600,000 the first year and $600,000 the second year are for public television equipment needs. Equipment grant allocations shall be made after considering the recommendations of the Minnesota public television association.

$320,000 the first year and $320,000 the second year are for community service grants to public educational radio stations, which must be allocated after considering the recommendations of the Association of Minnesota Public Educational Radio Stations under Minnesota Statutes, section 129D.14.

$494,000 the first year and $494,000 the second year are for equipment grants to public radio stations. These grants must be allocated after considering the recommendations of the Association of Minnesota Public Educational Radio Stations and Minnesota Public Radio, Inc.

$25,000 the first year and $25,000 the second year are for a grant to the association of Minnesota public education radio stations for station KMOJ. This money may be used for equipment. This appropriation is separate from and in addition to money appropriated for stations affiliated with Minnesota Public Radio and the Association of Minnesota Public Radio Stations.

$350,000 the first year and $750,000 the second year are for grants for public information television transmission of legislative activities. At least one-half must go for programming to be broadcast in rural Minnesota.

$750,000 in matching funds is available the first year to Twin Cities public television for the construction of a digital broadcast transmission facility.

If an appropriation for either year for grants to public television or radio stations is not sufficient, the appropriation for the other year is available for it.

Before receiving funding under this section, each public radio or public television station or network that is to receive funding must agree to submit a report to the commissioner. The report must list all sources of revenue for the station or network and any for-profit subsidiaries. This must include all federal, state, or local funds received; private and corporate gifts, grants, and other donations, including conditions placed on the use of these; investment earnings; and a programming list. This report must be submitted by January 31, 1998; January 31, 1999; and January 31, 2000. Each report must cover the previous calendar year.

Funds appropriated for the benefit of Minnesota public radio or an affiliate station of Minnesota public radio are available for expenditure only if Minnesota public radio sells KSJN 99.5 to a minority group providing programming for the minority community of the metropolitan area.

Subd. 9. Children's Museum

165,000 165,000

This appropriation is for a grant to the Minnesota Children's Museum.

Subd. 10. Star Program

175,000 175,000

Subd. 11. Hockey Hall of Fame

$300,000 the first year is for a grant to the hockey hall of fame in Eveleth. Any money not spent the first year is available the second year.

Up to $150,000 of this grant is available for capital improvements and building and grounds maintenance.

At least $150,000 of this grant must be used to establish an endowment for the hall of fame. The portion of the grant to be used for an endowment is available in $25,000 increments only if matched by nonstate funds. The principle amount placed in an endowment fund must remain in the fund. The hall of fame may spend only interest and other earnings on the principle.

Subd. 12. American Bald Eagle Center

Subd. 13. Voyageur Center

$250,000 is for a grant to the city of International Falls for the predesign and design of an interpretive library and conference center. This grant is available only upon demonstration that a dollar-for-dollar match from nonstate funds has been raised. The center shall provide educational opportunities and enhance tourism by presenting information and displays that preserve and interpret the history of the voyageurs and animals involved with the voyageurs, emphasizing the importance of the fur trade to the history and development of the region and the state. The center shall include conference facilities. The center shall be located in the city of International Falls. The city may enter into a lease or management contract with a nonprofit entity for operation of the center. In developing plans for the facility, the commissioner must consult with the small business development center located at Rainy River Community College.

Subd. 14. Intergovernmental Information Systems Advisory Council

780,000 281,000

$280,000 the first year and $281,000 the second year must be subtracted from local government aid under Minnesota Statutes, chapter 477A in order to fund the intergovernmental information systems advisory council.

Funds that were made available to develop the local government financial reporting system in Laws 1994, chapter 587, article 3, section 3, clause (5), shall also be used to implement and operate the system.

The intergovernmental information systems advisory council shall create a committee to provide direction for the ongoing operation and maintenance of the local government financial reporting system similar to the recommendation made in the initial report to the legislative commission on planning and fiscal policy. Members shall include one member each from the legislature, office of the state auditor, department of revenue, department of finance, counties, cities, townships, special districts, and a member from the general financial community.

Subd. 15. Bloomington Arts Center

$500,000 is for a grant to the Bloomington Arts Center. This appropriation is available only upon demonstration of a dollar-for-dollar match from nonstate sources.

Subd. 16. State Archaeologist

$166,000 the first year and $168,000 the second year are for the office of the state archaeologist.

Sec. 13. MINNESOTA OFFICE OF TECHNOLOGY 4,361,000 3,912,000

$1,270,000 is for the North Star initiative. The appropriation is available until expended.

$2,326,000 the first year and $2,377,000 the second year are for the operations of the office of technology.

$500,000 the first year is for support of activities associated with a plenipotentiary conference of the International Telecommunications Union.

$1,000,000 is to operate the Minnesota Internet Center and to develop community technology resources under Minnesota Statutes, sections 237B.11 to 237B.14. The appropriation is available until expended.

$400,000 each year is for development of a United Nations trade point in the state.

The office of technology shall assess the feasibility of providing interactive government services via the North Star network.

Space occupied by that portion of the information policy office that is transferred to the office of technology is transferred to control of the office of technology.

Sec. 14. CAPITOL AREA ARCHITECTURAL AND PLANNING

BOARD 356,000 289,000

The appropriation in Laws 1996, chapter 390, section 5, for revision of the board's comprehensive plan and zoning ordinance is available until June 30, 1998.

$50,000 for the biennium is to plan a Coya Knutson memorial on the capitol grounds.

Sec. 15. FINANCE

Subdivision 1. Total Appropriation 25,631,000 26,410,000

Subd. 2. Accounting Services

4,696,000 4,795,000

Subd. 3. Accounts Receivable Operations

1,476,000 1,513,000

Subd. 4. Budget Services

2,129,000 2,189,000

The term "annualization of new programs" as used in the detailed budget estimates shall be changed to "new programs to agency base."

Subd. 5. Economic Analysis

313,000 319,000

Subd. 6. Information Services

15,415,000 15,963,000

The commissioner, in consultation with the legislative auditor's office and interested legislators and legislative staff, shall make recommendations to the legislature on increasing the relevance, usefulness, and benefits of performance reports and increasing the efficiency of the report development process. The commissioner shall report to the chairs of the state government finance divisions in the house and the senate by February 2, 1998.

Subd. 7. Management Services

1,602,000 1,631,000

Sec. 16. EMPLOYEE RELATIONS

Subdivision 1. Total Appropriation 8,740,000 7,293,000

The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.

Subd. 2. Human Resources Management

7,286,000 7,189,000

The commissioner of finance shall include $140,000 of the second year amount when determining the base level for the budget of the department of employee relations for the biennium ending June 30, 2001.

$22,000 each year is to fund a position to administer the state's annual combined charities program.

During the biennium ending June 30, 1999, the commissioner shall attempt to recruit Minnesota welfare recipients to fill at least ten percent of vacancies in entry level state positions.

This appropriation includes money for a grant each year to the government training service.

Subd. 3. Employee Insurance

1,454,000 104,000

$104,000 the first year and $104,000 the second year are for the right-to-know contracts administered through the employee insurance division.

$1,000,000 in the first year is a one-time appropriation to establish a state workers' compensation settlement and contingency reserve. This appropriation must be transferred to a separate account within the miscellaneous special revenue fund, from which payments may be made and premiums assessed to replenish the reserve account under new Minnesota Statutes, section 176.611, subdivision 2a.

During the biennium ending June 30, 1999, the amount necessary to pay premiums for coverage by the worker's compensation reinsurance association under Minnesota Statutes, section 79.34, is appropriated from the general fund to the commissioner.

Sec. 17. REVENUE

Subdivision 1. Total Appropriation 79,651,000 81,883,000

General 77,511,000 79,694,000

Highway User

Tax Distribution 2,044,000 2,091,000

Environmental 96,000 98,000

The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.

Subd. 2. Income Tax

Subd. 3. Business Excise and Consumption

13,657,000 13,972,000

$150,000 each year from the highway use tax distribution fund is for funding of the dyed fuel program. This appropriation is reduced by the amount of any federal grants available for use during the biennium for dyed fuel enforcement purposes.

General 11,517,000 11,783,000

Highway User

Tax Distribution 2,044,000 2,091,000

Environmental 96,000 98,000

Subd. 4. Property Tax and State Aids

2,869,000 3,026,000

Subd. 5. Tax Operations

27,679,000 28,207,000

Subd. 6. Legal and Research

3,830,000 3,832,000

$80,000 is for completion of the Minnesota/Wisconsin tax reciprocity study.

Subd. 7. Administrative Support

15,887,000 16,827,000

Subd. 8. Accounts Receivable

2,123,000 2,161,000

Sec. 18. MILITARY AFFAIRS

Subdivision 1. Total Appropriation 10,416,000 10,527,000

The amounts that may be spent from this appropriation for each program are specified in the following subdivisions.

Subd. 2. Maintenance of Training Facilities

6,056,000 6,129,000

Subd. 3. General Support

2,008,000 2,045,000

$75,000 the first year and $75,000 the second year are for expenses of military forces ordered to active duty under Minnesota Statutes, chapter 192. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

$400,000 each year is for a pilot project to make armories available for recreational activities for youth. This amount shall not be included in the agency's base for future bienniums. Scheduling of these activities is subject to approval of the adjutant general. The project must include, but is not limited to, armories in Minneapolis and on the east side of St. Paul. The adjutant general shall report to the chairs of the state government finance divisions in the house and the senate on the results of the pilot project, including the number of youth served, programs provided, benefits of the programs to communities served, and the cost of administering the project.

Subd. 4. Enlistment Incentives

2,352,000 2,353,000

Obligations for the reenlistment bonus program, suspended on December 31, 1991, shall be paid from the amounts available within the enlistment incentives program.

If appropriations for either year of the biennium are insufficient, the appropriation from the other year is available. The appropriations for enlistment incentives are available until expended.

Sec. 19. VETERANS AFFAIRS 12,979,000 12,799,000

$231,000 the first year and $232,000 the second year are for grants to county veterans offices for training of county veterans service officers.

With the approval of the commissioner of finance, the commissioner of veterans affairs may transfer the unencumbered balance from the veterans relief program to other department programs during the fiscal year. Before the transfer, the commissioner of veterans affairs shall explain why the unencumbered balance exists. The amounts transferred must be identified to the chairs of the senate governmental operations budget committee and the house governmental operations and gambling committee division on state government finance.

$250,000 the first year and $250,000 the second year are for a grant to the Vinland National Center.

$110,000 is for a matching grant for a memorial to be constructed in the city of Park Rapids to honor veterans from all wars involving armed forces of the United States. In-kind donations may be used for the nonstate match. The appropriation does not expire and is available until expended. $10,000 of this amount is for administrative costs.

$110,000 the first year is to make a grant to the Red Tail Project of the Southern Minnesota Wing of the Confederate Air Force and Tuskeegee Airmen, Inc., to restore a P-51C Mustang World War II fighter plane to honor the airmen known as the "Tuskeegee Airmen." The appropriation must be matched by nonstate contributions to the project. $10,000 of this amount is for administrative costs.

$17,000,000 is to make bonus payments authorized under Minnesota Statutes, section 197.79. The appropriation may not be used for administrative purposes. The appropriation does not expire until the commissioner acts on all applications submitted under Minnesota Statutes, section 197.79.

$500,000 is to administer the bonus program established under Minnesota Statutes, section 197.79. The appropriation does not expire until the commissioner acts on all the applications submitted under Minnesota Statutes, section 197.79.

Sec. 20. VETERANS OF FOREIGN WARS 41,000 41,000

For carrying out the provisions of Laws 1945, chapter 455.

Sec. 21. MILITARY ORDER OF THE PURPLE HEART 20,000 20,000

Sec. 22. DISABLED AMERICAN VETERANS 13,000 13,000

For carrying out the provisions of Laws 1941, chapter 425.

Sec. 23. LAWFUL GAMBLING CONTROL 2,205,000 2,249,000

If legislation is enacted that provides for increased revenue at the Canterbury Park horse racing facility, a minimum of $250,000 per year of this revenue must be paid to Jockeys' Guild Health and Welfare Trust to be maintained by Jockeys' Guild, Inc. for the purpose of providing health and welfare benefits to active jockeys and persons who become disabled, or retired jockeys after the effective date of this section, in accordance with reasonable rules for eligibility for such benefits.

If there is an agreement between Canterbury Park and another organization, including, but not limited to, the horsemen's organization representing a majority of the horsemen, regarding the allocation of any increase in revenue at Canterbury Park, such agreement shall not in any way change the obligation of Canterbury Park to distribute the apportioned revenue to the Jockeys' Guild Health and Welfare Trust as provided above.

Sec. 25. STATE LOTTERY

The director of the state lottery shall reimburse the general fund $150,000 the first year and $150,000 the second year for lottery-related costs incurred by the department of public safety.

The director of the state lottery shall reimburse the general fund $540,000 the first year and $540,000 the second year for amounts appropriated from the general fund to the commissioner of human services for compulsive gambling hotline services, outpatient treatment services, felony screening, and compulsive gambling youth education.

Sec. 26. AMATEUR SPORTS COMMISSION 8,245,000 599,000

$3,500,000 in fiscal year 1998 is for grants for ice centers, under Minnesota Statutes, section 240A.09. The maximum grant for a new facility is $250,000. The maximum grant for rehabilitation and renovation of an existing facility is $100,000. Any portion of this appropriation that is not spent in fiscal year 1998 carries forward and may be spent in fiscal year 1999.

$4,000,000 for the biennium is for a pilot project for youth sports as provided in Minnesota Statutes, section 240A.12. This amount must not be included in the agency's base for future bienniums. The executive director shall report to the chairs of the state government finance division in the house and the senate on the results of the pilot project, including the number of youth served, programs provided, benefits of the programs to communities served, and the cost of administering the project.

$75,000 is to study the feasibility of constructing an indoor amateur tennis facility in the city of St. Paul.

Sec. 27. GENERAL CONTINGENT ACCOUNTS 600,000 600,000

General 100,000 100,000

State Government

Special Revenue 400,000 400,000

Workers' Compensation 100,000 100,000

The appropriations in this section must be spent with the approval of the governor after consultation with the legislative advisory commission under Minnesota Statutes, section 3.30.

If an appropriation in this section for either year is insufficient, the appropriation for the other year is available for it.

The special revenue appropriation is available to be transferred to the attorney general when the costs to provide legal services to the health boards exceed the biennial appropriation to the attorney general from the special revenue fund and for transfer to the health boards if required for unforeseen expenditures of an emergency nature. The boards receiving the additional services or supplemental appropriations shall set their fees to cover the costs.

Sec. 28. TORT CLAIMS 175,000 175,000

To be spent by the commissioner of finance.

If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

Sec. 29. MINNESOTA STATE RETIREMENT SYSTEM 2,266,000 2,379,000

The amounts estimated to be needed for each program are as follows:

(a) Legislators

2,093,000 2,197,000

Under Minnesota Statutes, sections 3A.03, subdivision 2; 3A.04, subdivisions 3 and 4; and 3A.11.

(b) Constitutional Officers

173,000 182,000

Under Minnesota Statutes, sections 352C.031, subdivision 5; 352C.04, subdivision 3; and 352C.09, subdivision 2.

Sec. 30. MINNEAPOLIS EMPLOYEES RETIREMENT FUND 11,005,000 9,550,000

$10,455,000 the first year and $9,000,000 the second year are to the commissioner of finance for payment to the Minneapolis employees retirement fund under Minnesota Statutes, section 422A.101, subdivision 3. Payment must be made in four equal installments, March 15, July 15, September 15, and November 15, each year.

$550,000 the first year and $550,000 the second year are to the commissioner of finance for payment to the Minneapolis employees retirement fund for the supplemental benefit for pre-1973 retirees under Minnesota Statutes, section 356.865.

Sec. 31. POLICE AND FIRE AMORTIZATION AID 6,303,000 6,300,000

$. . . . . . . . . the first year and $. . . . . . . . . the second year are to the commissioner of revenue for state aid to amortize the unfunded liability of local police and salaried firefighters' relief associations, under Minnesota Statutes, section 423A.02.

$. . . . . . . . . the first year and $. . . . . . . . . the second year are to the commissioner of revenue for supplemental state aid to amortize the unfunded liability of local police and salaried firefighters' relief associations under Minnesota Statutes, section 423A.02, subdivision 1a.

$. . . . . . . the first year and $. . . . . . . the second year are to the commissioner of revenue to pay reimbursements to relief associations for firefighter supplemental benefits paid under Minnesota Statutes, section 424A.10.

Sec. 32. BOARD OF GOVERNMENT INNOVATION AND

COOPERATION 1,406,000 1,009,000

$200,000 is for a grant to a joint powers board, if one is established by the counties of Benton, Sherburne, and Stearns, and the cities of St. Cloud, Waite Park, Sartell, St. Joseph, and Sauk Rapids, for a joint planning pilot project. The board may make the grant after the joint powers board is formed and a copy of the joint powers agreement is received by the board.

$150,000 is for a grant to a joint powers board, if one is established by the counties of Benton, Sherburne, and Stearns, for a joint planning pilot project in areas not included in another joint powers board. The board may make the grant after the joint powers board is formed and a copy of the joint powers agreement is received by the board.

The study shall include but is not limited to: the positive or negative costs of reorganizing county government, any positive or negative impacts on the delivery of services in the new counties, how public employees would be affected in the transfer of services, the feasibility of adjacent counties or portions of counties, outside of either of the newly created counties, consolidating with one of the newly created counties, and any other issues the county board deems necessary. The study shall also include transitional issues, such as splitting assets and liabilities and levy authority. The board shall report to the legislature by January 15, 1998.

Sec. 33. BOND SALE SCHEDULE

The commissioner of finance shall schedule the sale of state general obligation bonds so that, during the biennium ending June 30, 1999, no more than $545,457,000 will need to be transferred from the general fund to the state bond fund to pay principal and interest due and to become due on outstanding state general obligation bonds. During the biennium, before each sale of state general obligation bonds, the commissioner of finance shall calculate the amount of debt service payments needed on bonds previously issued and shall estimate the amount of debt service payments that will be needed on the bonds scheduled to be sold, the commissioner shall adjust the amount of bonds scheduled to be sold so as to remain within the limit set by this section. The amount needed to make the debt service payments is appropriated from the general fund as provided in Minnesota Statutes, section 16A.641.

Sec. 34. Minnesota Statutes 1996, section 1.35, subdivision 2, is amended to read:

Subd. 2. [OFFICERS.] The members of the technical advisory task force shall select a chair and other officers as deemed necessary. The chair of the commission shall rotate every two years between the house and the senate.

Sec. 35. Minnesota Statutes 1996, section 3.056, is amended to read:

3.056 [DESIGNATION OF SUCCESSOR COMMITTEE.]

Sec. 36. Minnesota Statutes 1996, section 3.225, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION.] This section applies to a contract for professional or technical services entered into by the house of representatives, the senate, the legislative coordinating commission, or any group under the jurisdiction of the legislative coordinating commission. For purposes of this section, "professional or technical services" contract has the meaning defined in section 16B.17 but does not include legal services for official legislative business.

Sec. 37. Minnesota Statutes 1996, section 3.85, subdivision 3, is amended to read:

Subd. 3. [MEMBERSHIP.] The commission consists of five seven members of the senate appointed by the subcommittee on committees of the committee on rules and administration and five seven members of the house of representatives appointed by the speaker. Members shall be appointed at the commencement of each regular session of the legislature for a two-year term beginning January 16 of the first year of the regular session. Vacancies that occur while the legislature is in session shall be filled like regular appointments. If the legislature is not in session, senate vacancies shall be filled by the last subcommittee on committees of the senate committee on rules and administration or other appointing authority designated by the senate rules, and house vacancies shall be filled by the last speaker of the house, or if the speaker is not available, by the last chair of the house rules committee.

Sec. 38. Minnesota Statutes 1996, section 10A.071, subdivision 3, is amended to read:

Subd. 3. [EXCEPTIONS.] (a) The prohibitions in this section do not apply if the gift is:

(1) a contribution as defined in section 10A.01, subdivision 7;

(2) services to assist an official in the performance of official duties, including but not limited to providing advice, consultation, information, and communication in connection with legislation, and services to constituents;

(3) services of insignificant monetary value;

(4) a plaque or similar memento recognizing individual services in a field of specialty or to a charitable cause;

(5) a trinket or memento of insignificant value;

(6) informational material of unexceptional value; or

(7) food or a beverage given at a reception, meal, or meeting away from the recipient's place of work by an organization before whom the recipient appears to make a speech or answer questions as part of a program; or

(8) less than $5 in total value on any given day.

(b) The prohibitions in this section do not apply if the gift is given:

(1) because of the recipient's membership in a group, a majority of whose members are not officials, and an equivalent gift is given to the other members of the group; or

(2) by a lobbyist or principal who is a member of the family of the recipient, unless the gift is given on behalf of someone who is not a member of that family.

Sec. 39. Minnesota Statutes 1996, section 10A.09, subdivision 6, is amended to read:

Sec. 40. Minnesota Statutes 1996, section 10A.20, subdivision 2, is amended to read:

Subd. 2. The reports shall be filed with the board on or before January 31 of each year and additional reports shall be filed as required and in accordance with clauses (a) and (b).

(a) In each year in which the name of the candidate is on the ballot, the report of the principal campaign committee shall be filed ten 15 days before a primary and ten days before a general election, seven days before a special primary and a special election, and ten days after a special election cycle. The report due after a special election may be filed on January 31 following the special election if the special election is held not more than 60 days before that date.

(b) In each general election year political committees and political funds other than principal campaign committees shall file reports ten days before a primary and general election.

If a scheduled filing date falls on a Saturday, Sunday or legal holiday, the filing date shall be the next regular business day.

Sec. 41. [10A.205] [SOFTWARE FEE.]

The board shall charge a fee of $20 for purchase of software developed by the board for campaign finance reporting. Fees shall be deposited in the state treasury and credited to the general fund.

Sec. 42. Minnesota Statutes 1996, section 15.0597, subdivision 5, is amended to read:

Subd. 5. [NOMINATIONS FOR VACANCIES.] Any person may make a self-nomination for appointment to an agency vacancy by completing an application on a form prepared and distributed by the secretary. The secretary may provide for the submission of the application by electronic means. Any person or group of persons may, on the prescribed application form, nominate another person to be appointed to a vacancy so long as the person so nominated consents in writing on the application form to the nomination. The application form shall specify the nominee's name, mailing address, telephone number, preferred agency position sought, a statement that the nominee satisfies any legally prescribed qualifications, and any other information the nominating person feels would be helpful to the appointing authority. The nominating person has the option of indicating the nominee's sex, political party preference or lack thereof, status with regard to disability, race and national origin on the application form. The application form shall make the option known. If a person submits an application at the suggestion of an appointing authority, the person shall so indicate on the application form. Twenty-one days after publication of a vacancy in the State Register pursuant to subdivision 4, the secretary shall submit copies of all applications received for a position to the appointing authority charged with filling the vacancy. If no applications have been received by the secretary for the vacant position by the date when copies must be submitted to the appointing authority, the secretary shall so inform the appointing authority. Applications received by the secretary shall be deemed to have expired one year after receipt of the application. An application for a particular agency position shall be deemed to be an application for all vacancies in that agency occurring prior to the expiration of the application and shall be public information.

Sec. 43. Minnesota Statutes 1996, section 15.0597, subdivision 7, is amended to read:

Subd. 7. [REPORT.] Together with the compilation required in subdivision 3, the secretary shall annually deliver to the governor and the legislature a report containing the following information:

(1) the number of vacancies occurring in the preceding year;

(2) the number of vacancies occurring as a result of scheduled ends of terms, unscheduled vacancies and the creation of new positions;

(3) breakdowns by county, legislative district, and congressional district, and, if known, the sex, political party preference or lack thereof, status with regard to disability, race, and national origin, for members whose agency membership terminated during the year and appointees to the vacant positions; and

Sec. 44. Minnesota Statutes 1996, section 15.0599, subdivision 4, is amended to read:

Subd. 4. [REGISTRATION; INFORMATION REQUIRED.] (a) The appointing authority of a newly established agency shall provide the secretary with the following information:

(1) the name, mailing address, and telephone number of the agency;

(2) the legal authority for the establishment of the agency and the name and the title of the person or persons appointing agency members;

(3) the powers and duties of the agency and whether the agency, however designated, is best described by section 15.012, paragraph (a), (b), (c), (e), or (f);

(4) the number of authorized members, together with any prescribed restrictions on eligibility;

(5) the roster of current members, including mailing addresses and telephone numbers;

(6) a breakdown of the membership showing distribution by county, legislative district, and congressional district and compliance with any restrictions listed in accordance with clause (4);

(7) if any members have voluntarily provided the information, the sex, age, political preference or lack of preference, status with regard to disability, race, and national origin of those members;

(8) the dates of commencement and expiration of membership terms and the expiration date of the agency, if any;

(9) the compensation of members and appropriations or other money available to the agency;

(10) the name of the state agency or other entity, if any, required to provide staff or administrative support to the agency;

(11) the regular meeting schedule, if any, and the approximate number of hours a month of meetings or other activities required of members; and

(12) a brief statement of the goal or purpose of the agency, along with a summary of what an existing agency has done, or what a newly established agency plans to do to achieve its goal or purpose.

(b) The chair of an existing agency shall provide information, covering the fiscal year in which it is registering, on the number of meetings it has held, its expenses, and the number of staff hours, if any, devoted to its support. The chair shall also, if necessary, update any of the information previously provided in accordance with paragraph (a).

(c) The secretary shall provide forms for the reporting of information required by this subdivision and may provide for reporting by electronic means.

Sec. 45. Minnesota Statutes 1996, section 15.50, is amended by adding a subdivision to read:

Subd. 2b. [ACCESSIBILITY.] In considering any proposal for a new public building or memorial within the capitol area, the board must ensure that the proposal provides accessibility for persons with disabilities, as required by state and federal law.

Sec. 46. Minnesota Statutes 1996, section 15.50, is amended by adding a subdivision to read:

Sec. 47. Minnesota Statutes 1996, section 15.91, subdivision 2, is amended to read:

Subd. 2. [PERFORMANCE REPORTS.] (a) By November 30 January 10 of each even-numbered year, each agency shall issue a performance report that includes the following:

(1) the agency's mission;

(2) goals and objectives for each major program for which the agency will request funding in its next biennial budget;

(3) identification of the populations served by the programs; and

(4) workload, efficiency, output, and outcome measures for each program listed in the report, with data showing each programs' actual performance relative to these measures for the previous four fiscal years and the performance the agency projects it will achieve during the next two fiscal years with the level of funding it has requested.

(b) That portion of the performance report designed for presentation to legislative committees must:

(1) succinctly describe the most important goals or objectives for each of the agency's major programs, as those programs were displayed in the most recent detailed biennial budget document presented to the legislature; and

(2) succinctly present information that measures outcomes that the agency has achieved with the money that the legislature has appropriated, either directly or as a result of a standing appropriation, for each major program.

Information under this paragraph must be presented in a format that permits legislators to directly link program appropriations with program outcomes.

(c) If it would enhance an understanding of its mission, programs, and performance, the agency shall include in its report information that describes the broader economic, social, and physical environment in which the agency's programs are administered.

(d) Each agency shall send a copy of its performance report to the speaker of the house, president of the senate, legislative auditor, and legislative reference library, and provide a copy to others upon request.

(e) The commissioner of finance shall ensure that performance reports are complete, accurate, and reliable and compiled in such a way that they are useful to the public, legislators, and managers in state government. To maintain a computerized performance data system, the commissioner of finance may require agencies to provide performance data annually.

(f) The legislative auditor shall review and comment on performance reports as provided for by section 3.971, subdivision 3.

Sec. 48. Minnesota Statutes 1996, section 16A.10, subdivision 2, is amended to read:

Subd. 2. [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of each even-numbered year, an agency must file the following with the commissioner:

(1) budget and departmental earnings estimates for the most recent and current fiscal years;

(2) its upcoming biennial budget and departmental earnings estimates;

(3) a comprehensive and integrated statement of agency missions and outcome and performance measures; and

(4) a concise explanation of any planned changes in the level of services or new activities.

Sec. 49. [16A.1015] [BUDGET RESOLUTION.]

In each odd-numbered year, within 15 days after the last available state general fund revenue and expenditure forecast for the upcoming biennium prepared during the regular legislative session, the legislature shall adopt a budget resolution by concurrent resolution. The budget resolution must set the maximum limitation on expenditures and revenues for the coming biennium for the general fund, and an amount to be set aside as a budget reserve.

Sec. 50. Minnesota Statutes 1996, section 16A.11, subdivision 1, is amended to read:

Subdivision 1. [WHEN.] The governor shall submit a four-part budget to the legislature. Parts one and two, the budget message and detailed operating budget, must be submitted by the fourth Tuesday in January in each odd-numbered year. Part three, the detailed recommendations as to capital expenditure, must be submitted as follows: agency capital budget requests by June 15 of each odd-numbered year; preliminary governor's recommendations by September 1 of each odd-numbered year;, and final governor's recommendations by February 1 January 15 of each even-numbered year. Part four, the detailed recommendations as to information technology expenditure, must be submitted at the same time the governor submits the budget message to the legislature.

Sec. 51. Minnesota Statutes 1996, section 16A.11, subdivision 3c, is amended to read:

Subd. 3c. [PART FOUR; DETAILED INFORMATION TECHNOLOGY BUDGET.] The detailed information technology budget must include recommendations for information technology projects to be funded during the next biennium and planning estimates for an additional two biennia. It must be submitted with projects ranked in order of importance among all projects as determined by the governor.

Sec. 52. Minnesota Statutes 1996, section 16A.1285, subdivision 3, is amended to read:

Subd. 3. [DUTIES OF THE COMMISSIONER OF FINANCE.] The commissioner of finance shall classify, monitor, analyze, and report all departmental earnings that fall within the definition established in subdivision 1. Specifically, the commissioner shall:

(1) establish and maintain a classification system that clearly defines and distinguishes categories and types of departmental earnings and takes into account the purpose of the various earnings types and the extent to which various earnings types serve a public or private interest;

(2) prepare a biennial report that documents collection costs, purposes, and yields of all departmental earnings, the report to be submitted to the legislature on or before November 30 of each even-numbered year the fourth Tuesday in January in each odd-numbered year and to include estimated data for the year in which the report is prepared, actual data for the two years immediately before, and estimates for the two years immediately following; and

(3) prepare and maintain a detailed directory of all departmental earnings.

Sec. 53. Minnesota Statutes 1996, section 16A.129, subdivision 3, is amended to read:

Subd. 3. [CASH ADVANCES.] When the operations of any nongeneral fund account would be impeded by projected cash deficiencies resulting from delays in the receipt of grants, dedicated income, or other similar receivables, and when the deficiencies would be corrected within the budget period involved, the commissioner of finance may use general fund cash reserves to meet cash demands. If funds are transferred from the general fund to meet cash flow needs, the cash flow transfers must be returned to the general fund as soon as sufficient cash balances are available in the account to which the transfer was made. Any interest earned on general fund cash flow transfers accrues to the general fund and not to the accounts or funds to which the transfer was made. The commissioner may advance general fund cash reserves to nongeneral fund accounts where the receipts from other governmental units cannot be collected within the budget period.

Sec. 54. Minnesota Statutes 1996, section 16A.15, subdivision 3, is amended to read:

or appropriation to meet it. The commissioner shall determine when the accounting system may be used to incur obligations without the commissioner's certification of a sufficient unencumbered balance. An expenditure or obligation authorized or incurred in violation of this chapter is invalid and ineligible for payment until made valid. A payment made in violation of this chapter is illegal. An employee authorizing or making the payment, or taking part in it, and a person receiving any part of the payment, are jointly and severally liable to the state for the amount paid or received. If an employee knowingly incurs an obligation or authorizes or makes an expenditure in violation of this chapter or takes part in the violation, the violation is just cause for the employee's removal by the appointing authority or by the governor if an appointing authority other than the governor fails to do so. In the latter case, the governor shall give notice of the violation and an opportunity to be heard on it to the employee and to the appointing authority. A claim presented against an appropriation without prior allotment or encumbrance may be made valid on investigation, review, and approval by the commissioner agency head in accordance with the commissioner's policy, if the services, materials, or supplies to be paid for were actually furnished in good faith without collusion and without intent to defraud. The commissioner may then draw a warrant to pay the claim just as properly allotted and encumbered claims are paid.

(b) The commissioner may approve payment for materials and supplies in excess of the obligation amount when increases are authorized by section 16B.07, subdivision 2.

(c) To minimize potential construction delay claims, an agency with a project funded by a building appropriation may allow a contractor to proceed with supplemental work within the limits of the appropriation before money is encumbered. Under this circumstance, the agency may requisition funds and allow contractors to expeditiously proceed with a construction sequence. While the contractor is proceeding, the agency shall immediately act to encumber the required funds.

Sec. 55. [16A.151] [LAWSUIT PROCEEDS.]

Money received by the state as a result of litigation or settlements must be deposited in the general fund unless the terms of the litigation or settlement require otherwise. The money remains in the fund in which it is deposited until appropriated by law. Except as limited by the terms of the litigation or settlement, the legislature may appropriate the money for any purpose, including a purpose defined in the litigation or settlement.

Sec. 56. Minnesota Statutes 1996, section 16A.642, subdivision 1, is amended to read:

Subdivision 1. [REPORTS.] The commissioner of finance shall report to the chairs of the senate committee on finance and the house of representatives committees on ways and means and on capital investment by February 1 of each even-numbered odd-numbered year on the following:

(1) all state building projects for which bonds have been authorized and issued by a law enacted more than seven years before February 1 of that even-numbered odd-numbered year and of which 20 percent or less of a project's authorization has been encumbered or otherwise obligated for the purpose stated in the law authorizing the issue; and

(2) all state bonds authorized and issued for purposes other than building projects reported under clause (1), by a law enacted more than seven years before February 1 of that even-numbered odd-numbered year, and the amount of any balance that is unencumbered or otherwise not obligated for the purpose stated in the law authorizing the issue.

The commissioner shall also report on bond authorizations or bond proceed balances that may be canceled because projects have been canceled, completed, or otherwise concluded, or because the purposes for which the bonds were authorized or issued have been canceled, completed, or otherwise concluded. The bond authorizations or bond proceed balances that are unencumbered or otherwise not obligated that are reported by the commissioner under this subdivision are canceled, effective July 1 of the year of the report, unless specifically reauthorized by act of the legislature.

Sec. 57. Minnesota Statutes 1996, section 16B.05, subdivision 2, is amended to read:

Sec. 58. Minnesota Statutes 1996, section 16B.167, is amended to read:

16B.167 [EMPLOYEE SKILLS INVENTORY.]

The commissioners of employee relations and administration shall develop a list of skills that state agencies commonly seek from professional or technical service contracts, in consultation with exclusive representatives of state employees.

Before an agency may seek approval of a professional or technical services contract valued in excess of $25,000, it must certify to the commissioner that it has publicized the contract by posting notice at appropriate worksites within agencies and has made reasonable efforts to determine that no state employee, including an employee outside the contracting agency, is able and available to perform the services called for by the contract. When possible this posting must be done electronically.

For purposes of sections 16B.167 to 16B.175, "agency" includes the Minnesota state colleges and universities.

Sec. 59. Minnesota Statutes 1996, 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 depreciation and 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 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 to be expended for asset preservation projects as determined by the commissioner and appropriated by law. Money collected as rent to recover the depreciation cost 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. 60. [16B.275] [CAPITOL AREA CAFETERIAS.]

Sec. 61. Minnesota Statutes 1996, section 16B.35, is amended by adding a subdivision to read:

Subd. 5. [CONTRACTOR'S BOND NOT REQUIRED.] Sections 574.26 to 574.32 do not apply to this section.

Sec. 62. Minnesota Statutes 1996, section 16B.42, subdivision 1, is amended to read:

Subdivision 1. [COMPOSITION.] The intergovernmental information systems advisory council is composed of (1) two members from each of the following groups: counties outside of the seven-county metropolitan area, cities of the second and third class outside the metropolitan area, cities of the second and third class within the metropolitan area, and cities of the fourth class; (2) one member from each of the following groups: the metropolitan council, an outstate regional body, counties within the metropolitan area, cities of the first class, school districts in the metropolitan area, school districts outside the metropolitan area, and public libraries; (3) one member each appointed by the state departments of children, families, and learning, human services, revenue, and economic security, the office of strategic and long-range planning, and the legislative auditor; (4) one member from the office of the state auditor, appointed by the auditor; (5) the assistant commissioner of administration for the information policy office; (6) one member appointed by each of the following organizations: league of Minnesota cities, association of Minnesota counties, Minnesota association of township officers, and Minnesota association of school administrators; and (7) one member of the house of representatives appointed by the speaker and one member of the senate appointed by the subcommittee on committees of the committee on rules and administration. The legislative members appointed under clause (7) are nonvoting members. The commissioner of administration shall appoint members under clauses (1) and (2). The terms, compensation, and removal of the appointed members of the advisory council are as provided in section 15.059, but the council does not expire until June 30, 1997 2001.

Sec. 63. Minnesota Statutes 1996, section 16B.467, is amended to read:

16B.467 [ELECTRONIC PERMITTING AND LICENSING CONDUCT OF STATE BUSINESS.]

The commissioner of administration shall develop and implement a system under which people seeking state business can be conducted and permits or licenses that can be issued immediately upon payment of a fee can obtain these permits and licenses obtained through electronic access to communication with the appropriate state agencies.

Sec. 64. [16B.665] [BOARD OF APPEALS.]

A board of appeals must be appointed in each jurisdiction enforcing the state building code. The board must include members with experience in building construction and one public member who is not associated with building construction or inspection. The board must be appointed by the governing body of the municipality enforcing the code and may not include employees or elected officials of the municipality. The commissioner shall appoint a board of appeals for review of decisions in areas where the state building official enforces the code as a municipality.

Each board of appeals has authority to review and issue decisions regarding application and interpretation of the code by building officials in the municipality. The Board of Appeals cannot waive requirements of the code. The decision of the board of appeals is the final decision of the municipality and shall be submitted to the state building official for review with 15 days. The final decision of the municipality may be appealed pursuant to section 16B.67.

Sec. 65. Minnesota Statutes 1996, section 16B.70, subdivision 2, is amended to read:

Sec. 66. [43A.046] [STAFF REDUCTIONS.]

In order to maximize delivery of services to the public, if layoffs of state employees are necessary, each agency with more than 50 full-time equivalent employees must reduce at least the same percentage of management and supervisory personnel as line and support personnel.

Sec. 67. [43A.047] [CONTRACTED SERVICES.]

(a) Executive agencies, including the Minnesota state colleges and universities system, must demonstrate that they cannot use available staff before hiring outside consultants or services. If use of consultants is necessary, agencies are encouraged to negotiate contracts that will involve permanent staff, so as to upgrade and maximize training of state employees.

(b) If agencies reduce operating budgets, agencies must give priority to reducing spending on professional and technical service contracts before laying off permanent employees.

(c) Agencies must report to senate finance and house ways and means committees by August 1 each year on implementation of this section during the previous fiscal year. The reports must include amounts spent on professional and technical service contracts during the previous fiscal year.

Sec. 68. Minnesota Statutes 1996, section 43A.17, subdivision 4, is amended to read:

Subd. 4. [MEDICAL SPECIALISTS.] The commissioner may without regard to subdivision 1 establish special salary rates and plans of compensation designed to attract and retain exceptionally qualified doctors of medicine and information systems staff. These rates and plans shall be included in the commissioner's plan. In establishing salary rates and eligibility for nomination for payment at special rates for doctors, the commissioner shall consider the standards of eligibility established by national medical specialty boards where appropriate. The incumbents doctors assigned to these special ranges shall be excluded from the collective bargaining process.

Sec. 69. Minnesota Statutes 1996, section 43A.38, subdivision 4, is amended to read:

Subd. 4. [USE OF STATE PROPERTY.] (a) An employee shall not use or allow the use of state time, supplies or state-owned or leased property and equipment for the employee's private interests or any other use not in the interest of the state, except as provided by law.

(b) An employee may use state time, property, or equipment to communicate electronically with other persons including, but not limited to, elected officials, the employer, or an exclusive bargaining representative under chapter 179A, provided this use, including the value of the time spent, results in no incremental cost to the state or results in an incremental cost that is so small as to make accounting for it unreasonable or administratively impracticable.

Sec. 70. Minnesota Statutes 1996, section 116P.05, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] (a) A legislative commission on Minnesota resources of 16 22 members is created, consisting of the chairs of the house and senate committees on environment and natural resources or designees appointed for the terms of the chairs, the chairs of the house and senate committees on environment and natural resources finance or designees appointed for the terms of the chairs, the chairs of the house ways and means and senate finance committees or designees appointed for the terms of the chairs, six seven members of the senate appointed by the subcommittee on committees of the committee on rules and administration, and six seven members of the house appointed by the speaker.

At least two four members from the senate and two four members from the house must be from the minority caucus. Members are entitled to reimbursement for per diem expenses plus travel expenses incurred in the services of the commission.

(c) Members shall serve on the commission until their successors are appointed.

(d) Vacancies occurring on the commission shall not affect the authority of the remaining members of the commission to carry out their duties, and vacancies shall be filled in the same manner under paragraph (a).

Sec. 71. Minnesota Statutes 1996, section 138.31, is amended by adding a subdivision to read:

Subd. 14. "Qualified professional archaeologist" means an archaeologist who meets the United States Secretary of the Interior's professional qualification standards in Code of Federal Regulations, title 36, part 61, appendix A, or subsequent revisions.

Sec. 72. Minnesota Statutes 1996, section 138.35, is amended to read:

138.35 [STATE ARCHAEOLOGIST.]

Subdivision 1. [APPOINTMENT.] The state archaeologist shall be a qualified professional archaeologist who meets the United States Secretary of the Interior's professional qualification standards in Code of Federal Regulations, title 36, part 61, appendix A. The state archaeologist shall be paid a salary in the range of salaries paid to comparable state employees in the classified service. The state archaeologist may not be employed by the Minnesota historical society. The state archaeologist shall be appointed by the board executive council of the Minnesota historical society in consultation with the Indian affairs council for a four-year term. to perform the duties in sections 138.31 to 138.42. The position is in the unclassified service in the executive branch and is subject to chapter 43A but not chapter 179A. The compensation and terms and conditions of employment are as provided by section 43A.18, subdivision 3. The state archaeologist's salary shall be established by the commissioner of employee relations within a range established by the commissioner of employee relations.

Subd. 1a. [ADMINISTRATIVE SUPPORT; STAFF.] The commissioner of administration shall provide the state archaeologist with necessary administrative services. State agencies shall provide the state archaeologist upon request with advisory staff services on matters relating to the duties and jurisdiction of the state archaeologist. The state archaeologist shall hire staff and maintain offices as necessary to perform the duties in sections 138.31 to 138.42. Staff shall serve in the unclassified service and be governed by section 43A.18, subdivision 2.

Subd. 1b. [CONTRACTS; VOLUNTEERS; GRANTS AND GIFTS.] The state archaeologist may contract with the federal government, local governmental units, other states, the university and other educational institutions, and private persons or organizations as necessary in the performance of the duties in sections 138.31 to 138.42. Contracts made under this section for professional services shall not be subject to chapter 16B, as it relates to competitive bidding. The state archaeologist may recruit, train, and accept, without regard to personnel laws or rules, the services of individuals as volunteers for or in aid of performance of the state archaeologist's duties, and may provide for the incidental expenses of volunteers, such as transportation, lodging, and subsistence. The state archaeologist may apply for, receive, and expend grants and gifts of money consistent with the powers and duties in sections 138.31 to 138.42. Any money so received is appropriated for the purpose for which it was granted.

Subd. 2. [DUTIES OF STATE ARCHAEOLOGIST.] The duties of the state archaeologist shall include the following:

(a) to sponsor, engage in, and direct fundamental research into the archaeology of this state and to encourage and coordinate archaeological research and investigation undertaken within the state.;

(b) to cooperate with other agencies of the state which may have authority in areas where state sites are located, or which may have the responsibility for marking state sites, or arranging for their being viewed by the public.;

(c) to protect to the extent possible and to encourage the preservation of archaeological sites located on privately owned property.;

(e) to obtain for the state other objects of archaeological significance, and data relating thereto.;

(f) to cooperate with the historical society, the university, and other custodians to preserve objects of archaeological significance, together with the data relating thereto.;

(g) to disseminate archaeological facts through the publication of reports of archaeological research conducted within the state.;

(h) to approve licensing of qualified persons professional archaeologists to engage in field archaeology on state sites, as provided in section 138.36,; and

(i) to otherwise carry out and enforce sections 138.31 to 138.42.

Subd. 3. [EMPLOYMENT OF PERSONNEL.] The state archaeologist may employ personnel to assist in carrying out the state archaeologist's duties and may spend state appropriations to compensate such personnel.

Sec. 73. Minnesota Statutes 1996, section 176.611, is amended by adding a subdivision to read:

Subd. 2a. [SETTLEMENT AND CONTINGENCY RESERVE ACCOUNT.] To reduce long-term costs, minimize impairment to agency operations and budgets, and distribute risk of one-time catastrophic claims, the commissioner of employee relations shall maintain a separate account within the state compensation revolving fund. The account shall be used to pay for lump-sum or annuitized settlements, structured claim settlements, and one-time large, legal, catastrophic medical, indemnity, or other irregular claim costs that might otherwise pose a significant burden for agencies. The commissioner of employee relations, with the approval of the commissioner of finance, may establish criteria and procedures for payment from the account on an agency's behalf. The commissioner of employee relations may assess agencies on a reimbursement or premium basis from time-to-time to ensure adequate account reserves. The account consists of appropriations from the general fund, receipts from billings to agencies, and credited investment gains or losses attributable to balances in the account. The state board of investment shall invest the assets of the account according to section 11A.24.

Sec. 74. Minnesota Statutes 1996, section 177.24, subdivision 1, is amended to read:

Subdivision 1. [AMOUNT.] (a) For purposes of this subdivision, the terms defined in this paragraph have the meanings given them.

(1) "Large employer" means an enterprise whose annual gross volume of sales made or business done is not less than $362,500 $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota fair labor standards act, sections 177.21 to 177.35.

(2) "Small employer" means an enterprise whose annual gross volume of sales made or business done is less than $362,500 $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota fair labor standards act, sections 177.21 to 177.35.

(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer must pay each employee wages at a rate of at least $4.25 $5.40 an hour beginning September 1, 1997. Every small employer must pay each employee at a rate of at least $4 $5.15 an hour beginning September 1, 1997.

(c) A large employer must pay each employee at a rate of at least the minimum wage set by this section or federal law without the reduction for training wage or full-time student status allowed under federal law for the initial employment of employees under age 20.

Sec. 75. Minnesota Statutes 1996, section 179A.03, subdivision 15, is amended to read:

Subd. 15. [PUBLIC EMPLOYER.] "Public employer" or "employer" means:

(b) the board of regents of the University of Minnesota for its employees; and

(c) notwithstanding any other law to the contrary, the governing body of a political subdivision or its agency or instrumentality which has final budgetary approval authority for its employees. However, the views of elected appointing authorities who have standing to initiate interest arbitration, and who are responsible for the selection, direction, discipline, and discharge of individual employees shall be considered by the employer in the course of the discharge of rights and duties under sections 179A.01 to 179A.25; and

(d) the legislative coordinating commission for legislative employees.

When two or more units of government subject to sections 179A.01 to 179A.25 undertake a project or form a new agency under law authorizing common or joint action, the employer is the governing person or board of the created agency. The governing official or body of the cooperating governmental units shall be bound by an agreement entered into by the created agency according to sections 179A.01 to 179A.25.

"Public employer" or "employer" does not include a "charitable hospital" as defined in section 179.35, subdivision 2.

Nothing in this subdivision diminishes the authority granted pursuant to law to an appointing authority with respect to the selection, direction, discipline, or discharge of an individual employee if this action is consistent with general procedures and standards relating to selection, direction, discipline, or discharge which are the subject of an agreement entered into under sections 179A.01 to 179A.25.

Sec. 76. Minnesota Statutes 1996, section 179A.10, subdivision 1, is amended to read:

Subdivision 1. [EXCLUSIONS.] The commissioner of employee relations shall meet and negotiate with the exclusive representative of each of the units specified in this section, except as provided in section 43A.06, subdivision 1, paragraph (c). The units provided in this section are the only appropriate units for executive branch state employees. The following employees shall be excluded from any appropriate unit:

(1) the positions and classes of positions in the classified and unclassified services defined as managerial by the commissioner of employee relations in accordance with section 43A.18, subdivision 3, and so designated in the official state compensation schedules;

(2) unclassified positions in the state university system and the community college system defined as managerial by their respective boards;

(3) positions of physician employees compensated under section 43A.17, subdivision 4;

(4) positions of all unclassified employees appointed by a constitutional officer;

(5) positions in the bureau;

(6) (5) positions of employees whose classification is pilot or chief pilot;

(7) (6) administrative law judge and compensation judge positions in the office of administrative hearings; and

(8) (7) positions of all confidential employees.

The governor may upon the unanimous written request of exclusive representatives of units and the commissioner direct that negotiations be conducted for one or more units in a common proceeding or that supplemental negotiations be conducted for portions of a unit or units defined on the basis of appointing authority or geography.

Sec. 77. [197.79] [VETERANS' BONUS PROGRAM.]

Subdivision 1. [DEFINITIONS.] For purposes of this section, the following terms have the meanings given them.

(b) "Application" means a request for a bonus payment by a veteran, a veteran's beneficiary, or a veteran's guardian through submission of written information on a form designed by the commissioner for this purpose.

(c) "Beneficiary" means in relation to a deceased veteran and in the order named;

(1) the surviving spouse, if not remarried;

(2) the children of the veteran, if there is no surviving spouse or the surviving spouse has remarried;

(3) the veterans surviving mother;

(4) the veteran's surviving father; or

(5) a surviving person standing in loco parentis.

(d) "Commissioner" means the commissioner of the department of veterans affairs.

(e) "Department" means the department of veterans affairs.

(f) "Eligibility period for the bonus" means the period from August 2, 1990, to July 31, 1991.

(g) "Guardian" means the legally appointed representative of a minor or incompetent, the chief officer of a hospital or institution in which the minor or incompetent is placed if the officer is authorized to accept money for the benefit of the minor or incompetent, the person determined by the commissioner to be the person who is legally charged with the responsibility for the care of the minor or incompetent, or the person determined by the commissioner to be the person who has assumed the responsibility for the care of the minor or incompetent.

(h) "Honorable service" means honorable service in the United States armed forces, as evidenced by;

(1) an honorable discharge;

(2) a general discharge under honorable conditions;

(3) in the case of an officer, a certificate of honorable service; or

(4) in the case of an applicant who is currently serving in active duty in the United States armed forces, a certificate from an appropriate service authority that the applicant's service to date has been honorable.

(i) "Resident veteran" means a veteran who served in active duty in the United States armed forces at any time during the eligibility period for the bonus, and who also:

(1) has been separated or discharged from the United States armed forces, and whose home of record at the time of entry into active duty in the United States armed forces, as indicated on the person's form DD-214, is the state of Minnesota; or

(2) is currently serving in the United States armed forces, and has a certificate from an appropriate service authority stating that the person: (i) served in active duty in the United States armed forces at any time during the eligibility period for the bonus; and (ii) had Minnesota as the home of record at the time of entry into active duty in the United States armed forces.

(j) "Service connected" means caused by an injury or disease incurred or aggravated while on active duty, as determined by the United States department of veterans affairs.

"Veteran" includes any member of a reserve component of the armed forces of the United States, including the national guard, who was ordered to active duty under United States Code, title 10, section 673(b), during the eligibility period for the bonus and who was deployed to a duty station outside the state of Minnesota, as verified by the appropriate service authority. An applicant's DD-214 form showing award of the Southwest Asia service medal during the eligibility period for the bonus will suffice as verification. "Veteran" does not include a member of the national guard or the reserve components of the United States armed forces ordered to active duty for the sole purpose of training.

Subd. 2. [BONUS AMOUNT.] (a) For a resident veteran who provided honorable service in the United States armed forces at any time during the eligibility period for the bonus, the bonus amount is;

(1) $300, if the veteran did not become eligible for the Southwest Asia service medal during the eligibility period for the bonus;

(2) $600, if the veteran became eligible for the Southwest Asia service medal during the eligibility period for the bonus; or

(3) $2,000, if the veteran became eligible for the Southwest Asia service medal during the eligibility period for the bonus, and died during that time period as a direct result of a service connected injury, disease, or condition.

(b) In the case of a deceased veteran, the bonus must be paid to the veteran's beneficiary.

(c) No payment may be made to a veteran or beneficiary who has received a similar bonus payment from another state.

Subd. 3. [APPLICATION PROCESS.] A veteran, or the beneficiary of a veteran, entitled to a bonus may make application for a bonus to the department on a form prescribed by the commissioner and verified by the applicant. If the veteran is incompetent or the veteran's beneficiary is a minor or incompetent, the application must be made by the person's guardian. An application must be accompanied by evidence of residency, honorable service, active duty service during the eligibility period for the bonus, and any other information the commissioner requires. The applicant must indicate on the application form the bonus amount for which the applicant expects to be eligible.

If the information provided in the application is incomplete, the department must notify the applicant in writing of that fact and must identify the items of information needed to make a determination. After notifying an applicant that the person's application is incomplete, the department shall hold the application open while awaiting further information from the applicant, and the applicant may submit that information without filing an appeal and request for review.

Subd. 4. [BONUS DETERMINATION, APPEAL PROCESS, AND PAYMENT.] (a) Except as provided in paragraphs (b) to (d), the commissioner may not make a bonus payment to any applicant.

(b) Upon submission of proof to the department that an applicant is entitled to payment under this section, the department shall determine the amount of the bonus for which the applicant is eligible. If the department's determination of the bonus amount is in agreement with, or is greater than, the amount requested by the applicant in the application, the commissioner shall pay to the applicant the bonus amount, as determined by the department.

(c) If the department determines that the bonus amount for an applicant is less than the amount requested in the application, the department shall notify the applicant in writing of its determination, and include with that notification a form that the applicant may use to accept the department's determination and thereby waive the right to review of that determination. A filing by the applicant of the acceptance and waiver form with the department constitutes a waiver by the applicant of the right to review. Upon receipt of such acceptance and waiver from the applicant, the department shall pay to the applicant the bonus amount, as determined by the department. Unless an appeal is filed with the commissioner by an applicant in accordance with paragraph (d), all orders, decisions, and acts of the department with reference to the claim of the applicant are final and conclusive upon the applicant.

no payment shall be made by the department to the applicant until the review has been completed. For such review, the applicant may submit additional information to supplement the information provided in the application, and may request that the review be conducted either: (1) through written correspondence; or (2) in person with the commissioner. The commissioner shall act upon an appeal and request for review within seven working days of its receipt by the department. Following review by the commissioner of the application and any additional information submitted or presented by the applicant, the commissioner's determination is final. Any expenses incurred by the applicant as the result of the applicant's appeal and request for review are the obligation of the applicant.

Subd. 5. [NOTICES.] Notices and correspondence to an applicant must be directed to the applicant by mail at the address listed in the application. Notices and correspondence to the commissioner must be addressed to the commissioner's office in St. Paul.

Subd. 6. [POWERS AND DUTIES OF THE COMMISSIONER.] (a) The commissioner shall administer this section.

(b) The commissioner shall determine who is the beneficiary of a deceased veteran and determine who is the person who has assumed the responsibility for the care of any minor or incompetent.

(c) The commissioner may employ persons and may incur other expenses necessary to administer this section.

Subd. 7. [TAX EXEMPT GIFTS.] The bonus payments provided for by this section are gifts or gratuities given as a token of appreciation to eligible veterans and are not compensation for services rendered. The payments are exempt from taxation.

Subd. 8. [NONASSIGNABLE; EXCEPTED FROM PROCESS.] A claim for payment under this section is not assignable or subject to garnishment, attachment, or levy of execution.

Subd. 9. [PENALTIES.] A person who knowingly makes a false statement relating to a material fact in support of a claim for a bonus under this section is guilty of a gross misdemeanor.

Subd. 10. [DEADLINE FOR APPLICATIONS.] The application period for the bonus program established in this section shall be November 1, 1997, to June 30, 1999. The department may not receive or accept new applications after June 30, 1999.

Sec. 78. [240A.12] [YOUTH SPORTS PROGRAMS; CRITERIA.]

The Minnesota amateur sports commission shall develop a plan to promote recreational programs for youth. The proposals must be for programs for which there is a demonstrated shortage of access, based on needs of youth. The plan must be based on the criteria in this section.

(a) The programs must be intended primarily for use for youth sports in the entire community and not for school athletic functions.

(b) Programs must emphasize access for low-income youth and for other youth who would not otherwise have access to the programs.

(c) Proposals must contain a plan to ensure equitable use for youth of each gender.

(d) To the extent possible, program grants must be dispersed equitably, must be located to maximize potential for full utilization, and must accommodate noncompetitive family and community use for all ages in addition to use for competitive youth sports.

(e) To the extent possible, 50 percent of all grants must be awarded to communities in greater Minnesota.

Sec. 79. Minnesota Statutes 1996, section 327.33, subdivision 2, is amended to read:

This monitoring inspection fee shall be an amount paid by the manufacturer for each manufactured home produced in Minnesota. The monitoring inspection fee shall be paid by the manufacturer to the secretary. The rules of the fee distribution program require the secretary to distribute the fees collected from all manufactured home manufacturers among states approved and conditionally approved based on the number of new manufactured homes whose first location after leaving the manufacturer is on the premises of a distributor, dealer or purchaser in that state. All fees received money collected by the commissioner shall be deposited in the state treasury and credited to the general fund through fees prescribed by sections 327.31 to 327.36 shall be deposited in the state government special revenue fund and is appropriated to the commissioner for the purpose of administering and enforcing the manufactured home building code under sections 327.31 to 327.36.

Sec. 80. Minnesota Statutes 1996, section 327B.04, subdivision 7, is amended to read:

Subd. 7. [FEES; LICENSES; WHEN GRANTED.] Each application for a license or license renewal must be accompanied by a fee in an amount established by the commissioner by rule pursuant to section 327B.10, which shall be paid into the state treasury and credited to the general fund. The fees shall be set in an amount which over the fiscal biennium will produce revenues approximately equal to the expenses which the commissioner expects to incur during that fiscal biennium while administering and enforcing sections 327B.01 to 327B.12. All money collected by the commissioner through fees prescribed in sections 327B.01 to 327B.12 shall be deposited in the state government special revenue fund and is appropriated to the commissioner for purposes of administering and enforcing the provisions of this chapter. The commissioner shall grant or deny a license application or a renewal application within 60 days of its filing. If the license is granted, the commissioner shall license the applicant as a dealer or manufacturer for the remainder of the calendar year. Upon application by the licensee, the commissioner shall renew the license for a two year period, if:

(a) the renewal application satisfies the requirements of subdivisions 3 and 4;

(b) the renewal applicant has made all listings, registrations, notices and reports required by the commissioner during the preceding year; and

(c) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to 327B.12 and all taxes, arrearages, and penalties owed to the state.

Sec. 81. Minnesota Statutes 1996, section 349.163, subdivision 4, is amended to read:

Subd. 4. [INSPECTION OF MANUFACTURERS.] Employees of the board and the division of gambling enforcement may inspect the books, records, inventory, and business premises of a licensed manufacturer without notice during the normal business hours of the manufacturer. The board may charge a manufacturer for the actual cost of conducting inspections of the manufacturer's facilities, where the amount charged to the manufacturer for such inspections in any year does not exceed $7,500. The board shall deposit in a separate account in the state treasury all money received as reimbursement for the costs of inspections. Until July 1, 1999, money in the account is appropriated to the board to pay the costs of the inspections.

Sec. 82. Minnesota Statutes 1996, section 403.08, is amended by adding a subdivision to read:

Subd. 7. [CELLULAR AND OTHER NONWIRE PROVIDERS.] (a) Each cellular and other wireless access service provider shall cooperate in planning and implementing integration with enhanced 911 systems operating in their service territories to meet federal communications commission enhanced 911 standards. By August 1, 1997, each 911 emergency telephone service provider operating enhanced 911 systems, in cooperation with each involved cellular or other wireless access service provider, shall develop and provide to the department of administration good-faith estimates of installation and recurring expenses to integrate cellular 911 service into the enhanced 911 networks to meet federal communications commission phase one wireless enhanced 911 standards. The department of administration shall coordinate with counties and affected public safety agency representatives in developing a statewide design and plan for implementation.

(c) Planning considerations must include cost, degree of integration into existing 911 systems, the retention of existing 911 infrastructure, and the implementation of phase 2 of the federal communications commission wireless enhanced 911 standards.

(d) Counties shall incorporate the statewide design when modifying county 911 plans to provide for integrating wireless 911 service into existing county 911 systems. The department of administration shall contract with the involved wireless service providers and 911 service providers to integrate cellular and other wireless services into existing 911 systems where feasible.

Sec. 83. Minnesota Statutes 1996, section 403.11, subdivision 2, is amended to read:

Subd. 2. [MODIFICATION COSTS.] (a) The costs of a public utility incurred in the modification of central office switching equipment for minimum 911 service shall be paid from the general fund of the state treasury by appropriations for that purpose.

(b) The installation and recurring charges for integrating cellular and other wireless access services 911 calls into enhanced 911 systems must be paid by the commissioner of administration if the 911 service provider is included in the statewide design plan and the charges have been certified and approved under subdivision 3, or the wireless access service provider has completed a contract for service with the department of administration, and charges are considered reasonable and accurate by the department. Charges payable to wireless access service providers are not subject to the provisions of subdivision 3.

Sec. 84. Minnesota Statutes 1996, section 403.113, subdivision 1, is amended to read:

Subdivision 1. [FEE.] (a) In addition to the actual fee assessed under section 403.11, each customer receiving local telephone service, excluding including cellular or other nonwire service, is assessed a fee to fund implementation and maintenance of enhanced 911 service, including acquisition of necessary equipment and the costs of the department of administration to administer the program. The enhanced fee collected from cellular or other nonwire service customers must be collected effective in July 1997 billings. The actual fee assessed under section 403.11 and the enhanced 911 service fee must be collected as one amount and may not exceed the amount specified in section 403.11, subdivision 1, paragraph (b).

(b) The enhanced 911 service fee must be collected and deposited in the same manner as the fee in section 403.11 and used solely for the purposes of paragraph (a) and subdivision 3.

(c) The commissioner of the department of administration, in consultation with counties and 911 system users, shall determine the amount of the enhanced 911 service fee and inform telephone companies or communications carriers that provide service capable of originating a 911 emergency telephone call of the total amount of the 911 service fees in the same manner as provided in section 403.11.

Sec. 85. Minnesota Statutes 1996, section 403.113, subdivision 2, is amended to read:

Subd. 2. [DISTRIBUTION OF MONEY.] (a) After payment of the costs of the department of administration to administer the program, the commissioner shall distribute the money collected under this section as follows:

(1) one-half of the amount equally to all qualified counties, and after October 1, 1997, to all qualified counties, existing ten public safety answering points operated by the Minnesota state patrol, and each governmental entity operating the individual public safety answering points serving the metropolitan airports commission, Red Lake Indian Reservation, and the University of Minnesota police department; and

(b) A county's share under subdivision 1 must be shared pro rata between the county and existing city systems in the county. A county or city or other governmental entity as described in paragraph (a), clause (1), shall deposit money received under this subdivision in an interest-bearing fund or account separate from the county's or city's governmental entity's general fund and may use money in the fund or account only for the purposes specified in subdivision 3.

(c) For the purposes of this subdivision, a county or city is qualified to share in the distribution of money for enhanced 911 service if the county auditor certifies to the commissioner of administration the amount of the county's or city's levy for the cost of providing enhanced 911 service for taxes payable in the year in which money for enhanced 911 service will be distributed. The commissioner may not distribute money to a county or city in an amount greater than twice the amount of the county's or city's certified levy. A county or city or other governmental entity as described in paragraph (a), clause (1), is not qualified to share in the distribution of money for enhanced 911 service if, in addition to the levy required under this paragraph, it has not implemented enhanced 911 service before December 31, 1998.

(d) For the purposes of this subdivision, "existing city system" means a city 911 system that provides at least basic 911 service and that was implemented on or before April 1, 1993.

Sec. 86. Minnesota Statutes 1996, section 403.113, subdivision 3, is amended to read:

Subd. 3. [LOCAL EXPENDITURES.] (a) Money distributed to counties or an existing city system under subdivision 2 for enhanced 911 service may be spent on enhanced 911 system costs for the purposes stated in subdivision 1, paragraph (a). In addition, money may be spent to lease, purchase, lease-purchase, or maintain enhanced 911 equipment, including telephone equipment; recording equipment; computer hardware; computer software for database provisioning, addressing, mapping, and any other software necessary for automatic location identification or local location identification; trunk lines; selective routing equipment; the master street address guide; dispatcher public safety answering point equipment proficiency and operational skills; pay for long-distance charges incurred due to transferring 911 calls to other jurisdictions; and the equipment necessary within the public safety answering point for community alert systems and to notify and communicate with the emergency services requested by the 911 caller.

(b) Money distributed for enhanced 911 service may not be spent on:

(1) purchasing or leasing of real estate or cosmetic additions to or remodeling of communications centers;

(2) mobile communications vehicles, fire engines, ambulances, law enforcement vehicles, or other emergency vehicles;

(3) signs, posts, or other markers related to addressing or any costs associated with the installation or maintenance of signs, posts, or markers.

Sec. 87. Minnesota Statutes 1996, section 403.113, subdivision 4, is amended to read:

Subd. 4. [AUDITS.] Each county and city or other governmental entity as described in subdivision 2, paragraph (a), clause (1), shall conduct an annual audit on the use of funds distributed to it for enhanced 911 service. A copy of each audit report must be submitted to the commissioner of administration.

Sec. 88. Minnesota Statutes 1996, section 403.13, is amended to read:

403.13 [CELLULAR TELEPHONE USE.]

Subdivision 1. [CELLULAR 911 CALLS.] (a) Those governmental entities that are responsible for the design, planning, and coordination of the 911 emergency telephone system under the requirements of this chapter shall ensure that a 911 emergency call made with a cellular or other wireless access device is automatically connected to and answered by the appropriate public safety answering point.

metropolitan area as defined in section 473.121, subdivision 2, and June 1, 1998, for the area outside the metropolitan area, the county 911 planning committees and the district offices of the state patrol shall notify the department of administration of any unresolved issues regarding the allocation of responsibility for answering cellular 911 emergency calls.

(c) Unresolved issues in the metropolitan area must be resolved by:

(1) the executive director of the metropolitan 911 board;

(2) the 911 product manager of the department of administration;

(3) a representative appointed by the Minnesota state sheriffs association from the metropolitan area;

(4) the commissioner of public safety or the commissioner's designee; and

(5) a representative appointed by the Minnesota chiefs of police association from the metropolitan area.

(d) Unresolved issues in the area outside the metropolitan area must be resolved by:

(1) a representative appointed by association of Minnesota counties from the area outside the metropolitan area;

(2) the 911 product manager of the department of administration;

(3) a representative appointed by the Minnesota state sheriffs association from the area outside the metropolitan area;

(4) the commissioner of public safety or the commissioner's designee; and

(5) a representative appointed by the Minnesota league of cities from the area outside the metropolitan area.

(e) These committees shall resolve outstanding issues by December 31, 1998. The decision of the committee is final.

Subd. 2. [NOTIFICATION OF SUBSCRIBERS.] A provider of cellular or other wireless telephone services in Minnesota shall notify its subscribers at the time of initial subscription and four times per year thereafter that a 911 emergency call made with a cellular wireless telephone is not always answered by a local public safety answering point but rather is may be routed to a state patrol dispatcher and that, accordingly, the caller must provide specific information regarding the caller's location.

Sec. 89. [403.14] [WIRELESS ENHANCED 911 SERVICE PROVIDER; LIABILITY.]

No wireless enhanced 911 emergency communication service provider, its employees, or its agents is liable to any person for civil damages resulting from or caused by any act or omission in the development, design, installation, operation, maintenance, performance, or provision of enhanced 911 wireless service, except for willful or wanton misconduct. No wireless carrier, its employees, or its agents is liable to any person who uses enhanced 911 wireless service for release of subscriber information required under this chapter to any public safety answering point.

Sec. 90. Minnesota Statutes 1996, section 422A.101, subdivision 3, is amended to read:

Subd. 3. [STATE CONTRIBUTIONS.] (a) Subject to the limitation set forth in paragraph (c), the state shall pay to the Minneapolis employees retirement fund annually an amount equal to the amount calculated under paragraph (b).

(c) The annual state contribution under this subdivision may not exceed $10,455,000 through fiscal year 1998 and $9,000,000 beginning in fiscal year 1999, plus the cost of the annual supplemental benefit determined under section 356.865.

(b) (d) If the amount determined under paragraph (a) (b) exceeds the limitation on the state payment in paragraph (a) $11,910,000, the excess must be allocated to and paid to the fund by the employers identified in subdivisions 1a and 2, other than units of metropolitan government. Each employer's share of the excess is proportionate to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in the annual actuarial valuation prepared by the actuary retained by the legislative commission on pensions and retirement compared to the total unfunded actuarial accrued liability attributed to all employers identified in subdivisions 1a and 2, other than units of metropolitan government. Payments must be made in equal installments as set forth in paragraph (a) (b).

Sec. 91. Minnesota Statutes 1996, section 465.87, is amended by adding a subdivision to read:

Subd. 4. [NONCANCELLATION.] Money appropriated to the board for the cooperation and combination program does not cancel but remains available until expended.

Sec. 92. Minnesota Statutes 1996, section 473.894, subdivision 3, is amended to read:

Subd. 3. [APPLICATION TO FCC.] Within 180 days from adoption of the regionwide public safety radio system communication plan the commissioner of transportation, on behalf of the state of Minnesota, shall use the plan adopted by the board under subdivision 2 to submit an extended implementation application to the Federal Communications Commission (FCC) for the NPSPAC channels and other public safety frequencies available for use in the metropolitan area and necessary to implement the plan. Local governments and all other public or private entities eligible under part 90 of the FCC rules shall not apply for public safety channels in the 821 to 824 and 866 to 869 megahertz bands for use within the metropolitan counties until the FCC takes final action on the regional application submitted under this section. Exceptions to the restrictions on the application for the NPSPAC channels may be granted by the radio board. The Minnesota department of transportation shall hold the master system licenses for all public safety frequencies assigned to the metropolitan area issued by the FCC first phase under the board's plan and these channels shall be used for the implementation of the plan. Local governments and other public and private entities eligible under part 90 of the FCC rules may apply to the FCC as colicensees for subscriber equipment and those portions of the network infrastructure owned by them. Application for colicensing under this section shall require the concurrence of the radio board The radio board shall hold the master system licenses for the public safety frequencies assigned to local government subsystems under the board's plan and these channels shall be used for implementation of the plan. Upon approval by the board of a local government's subsystem plan and evidence of a signed contract with a vendor for construction of a subsystem consistent with the board's system plan, the board shall apply to the FCC to transfer to the local government the licenses for the public safety frequencies assigned by the plan for use in the network infrastructure owned by the local government. The radio board, the Minnesota department of transportation, and local subsystem owners shall jointly colicense all subscriber equipment for the backbone system.

Sec. 93. Laws 1994, chapter 643, section 3, subdivision 2, is amended to read:

Subd. 2. Restore and Renovate Capitol Building Exterior 5,000,000

To the commissioner of administration to renovate and improve the capitol including reroofing, repair of the roof balustrade, and Quadriga restoration, and for an exterior stone testing program. No more than $35,000 of this appropriation is to the capitol area architectural and planning board for design review fees.

Sec. 94. Laws 1996, chapter 463, section 13, subdivision 2, is amended to read:

Subd. 2. Capital Asset Preservation and Replacement (CAPRA) 12,000,000

Up to $900,000 of the money appropriated in this subdivision may be used as necessary to renovate the Governor's Residence in St. Paul for life safety, code, security, and ancillary storage facility improvements.

Up to $600,000 of the money appropriated in this subdivision may be used to continue the electrical utility infrastructure conversion of the primary feeder loop system to a primary selective system by rerouting the system around the capitol.

In accordance with Minnesota Statutes, section 16B.31, subdivision 6, the commissioner of administration shall identify the condition and suitability of all major state buildings and office space and report the commissioner's findings by June 30, 1997, to the chairs of the senate committee on finance and the house of representatives committees on ways and means and on capital investment. The report must identify the useful life, the current condition, the estimated cost of currently needed repairs, and the suitability for the current state purposes of all major state-owned buildings and office space owned or leased by the state. The legislature intends to use the report in considering future appropriations to the commissioner of administration and to state agencies for asset preservation.

Sec. 95. [INTERIM FEE; APPROPRIATION AND DISTRIBUTION.]

(a) Until June 30, 1998, the fee for enhanced wireless 911 service is ten cents per month in addition to the fee actually collected under Minnesota Statutes, section 403.113, subdivision 1. The additional fee is imposed effective July 1, 1997, and is appropriated to the commissioner of administration for distribution as established in Minnesota Statutes, section 403.113, subdivision 1.

(b) Distribution of the revenue from the fee under Minnesota Statutes, section 403.113, subdivision 1, for enhanced wireless 911 service must begin October 1, 1997. The commissioner of administration shall determine the amount of the additional enhanced wireless 911 service fee to be in effect beginning July 1, 1998, under Minnesota Statutes, section 403.113.

Sec. 96. [INFORMATION TECHNOLOGY.]

By February 1, 1998, each executive branch state agency, including the MNSCU system, shall report to the finance divisions or committees in the House and the Senate that appropriate money for the agency on current and planned expenditures for information technology. The report must include:

(1) expenditures that will be incurred in the biennium ending June 30, 1999, and any planned future expenditures for each information technology project in the agency;

(2) the goals and objectives for each information technology project that is being developed in the biennium ending June 30, 1999, or that is planned for a future biennium; and

(3) the agency's progress in making its information technology systems compliant with the year 2000.

Sec. 97. [MINNESOTA CORPORATE SUBSIDY REFORM COMMISSION.]

Subdivision 1. [ESTABLISHMENT.] (a) A bipartisan Minnesota corporate subsidy reform commission is created.

(b) The commission shall evaluate selected subsidy programs and tax laws for the following:

(2) criterion for award; and

(3) accountability and enforcement mechanisms used to facilitate the achievement of the public purpose.

(c) The commission shall examine whether these subsidy programs or tax laws impede competition or provide preferential treatment to private enterprises.

Subd. 2. [SCOPE.] The commission shall review subsidy programs and tax laws including:

(1) tax expenditures and other tax concessions;

(2) direct spending and loans;

(3) public spending that indirectly affects the economic development of the region; and

(4) regulation of private activity for the purpose of economic development.

Subd. 3. [REPORT.] The commission shall submit a report to the legislature by December 15, 1997. Included within the report, the commission may suggest changes in the public purpose, criterion for award, administration, accountability and enforcement mechanisms, and funding of the subsidy programs. The commission may also suggest changes in the applicable tax laws.

Subd. 4. [MEMBERSHIP.] The commission consists of 19 members. The speaker of the house shall appoint five members, including at least two members of the minority caucus. The senate subcommittee on committees shall appoint five members, including at least two members of the minority caucus. The commissioner of trade and economic development and the commissioner of revenue shall each appoint one member from their respective departments. These members shall appoint seven members from the general public, of which at most two members directly receive some type of public assistance described in subdivision 2.

Subd. 5. [STAFF ASSISTANCE.] House and senate employees must staff the commission.

Subd. 6. [NOTIFICATION.] In accordance with Minnesota Statutes, section 471.705, the public may attend any meeting held by the commission.

Subd. 7. [EXPIRATION.] The commission established under subdivision 1 expires July 1, 1998.

Sec. 98. [ADVISORY COUNCIL ON LOCAL GOVERNMENT.]

Subdivision 1. [ESTABLISHED.] An advisory council on the roles and responsibilities of local governments is established.

Subd. 2. [DUTIES.] The advisory council shall study and make recommendations to the legislature by July 1, 1998, on the appropriate roles and responsibilities of local and regional government in the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2. The advisory council shall examine:

(1) what services should be provided and what functions fulfilled by local or regional government;

(2) what level of government is appropriate for the efficient, effective, and equitable delivery of these services and functions;

(3) what powers are needed by local and regional government to deliver the services; and

The advisory council may consider alternatives to the existing governance structures in order to fulfill the requirements of this section.

Subd. 3. [MEMBERSHIP.] The advisory council consists of 25 members, who serve at the pleasure of the appointing authority, as follows:

(1) four representatives of cities, appointed by the association of metropolitan municipalities;

(2) two representatives of towns, appointed by the Minnesota association of townships;

(3) four representatives of counties, appointed by the association of Minnesota counties;

(4) two representatives of school districts, appointed by the Minnesota school boards association;

(5) eight legislators; four house members, of whom two are members of the majority caucus appointed by the speaker of the house of representatives and two are members of the minority caucus appointed by the house minority leader; and four senate members, of whom two are members of the majority caucus and two are members of the minority caucus, appointed by the committee on rules and legislative administration;

(6) the chair of the metropolitan council, or the chair's designee; and

(7) four public members, appointed by the governor.

Members must be appointed as soon as practicable after the effective date of this section.

Subd. 4. [FIRST MEETING; SELECTION OF A CHAIR.] A member appointed by the association of metropolitan municipalities shall be selected by the association to convene the first meeting of the advisory council. At the first meeting, the advisory council shall select a member to serve as chair.

Subd. 5. [ADMINISTRATIVE; STAFF ASSISTANCE.] The office of strategic and long-range planning shall provide administrative and staff assistance to the advisory council.

Subd. 6. [EXPIRATION.] The advisory council established under subdivision 1 expires June 30, 1999.

Sec. 99. [ECONOMIC POLICY AND STRATEGIC PLANNING SURVEY.]

The director of the office of strategic and long-range planning shall survey the possible means of establishing and sustaining an ongoing state economic policy and the accompanying strategic planning and measures of success. Specifically, the survey should:

(1) review and summarize previous and ongoing efforts to guide economic goals for Minnesota;

(2) recommend a set of overall goals or possible alternatives for goals that reflects consensus, focusing on economic foundations including workforce development, public infrastructure, well-managed natural resources, technological innovation and commercialization, access to capital, and tax and regulatory climate;

(3) identify and critique models of economic policy and strategic planning from other states;

(4) consider methods of establishing and funding a broad-based, bipartisan economic policy council which will include substantial public and private participation;

(5) consider methods of integrating and consolidating the economic policy work of existing councils, commissions, and task forces; and

Sec. 100. [JUDICIAL BUILDING CAFETERIAS.]

The commissioner of administration shall close the cafeteria in the judicial building unless the judicial branch agrees to pay the commissioner an amount sufficient to offset operating losses.

Sec. 101. [VOLUNTARY UNPAID LEAVE OF ABSENCE.]

Appointing authorities in state government shall encourage each employee to take an unpaid leave of absence for up to 160 hours during the period ending June 30, 1999. Each appointing authority approving such a leave shall allow the employee to continue accruing vacation and sick leave, be eligible for paid holidays and insurance benefits, accrue seniority, and accrue service credit in state retirement plans permitting service credits for authorized leaves of absence as if the employee had actually been employed during the time of the leave. If the leave of absence is for one full pay period or longer, any holiday pay shall be included in the first payroll warrant after return from the leave of absence. The appointing authority shall attempt to grant requests for unpaid leaves of absence consistent with the need to continue efficient operation of the agency. However, each appointing authority shall retain discretion to grant or refuse to grant requests for leaves of absence and to schedule and cancel leaves, subject to applicable provisions of collective bargaining agreements and compensation plans. Any cost savings resulting from this section cancel to the fund from which the money was saved. It is anticipated that this section will result in savings to the general fund of $200,000 in each year of the biennium ending June 30, 1999.

Sec. 102. [INFORMATION POLICY TASK FORCE.]

Subdivision 1. [CREATION.] An information policy legislative task force is created to study and make recommendations regarding Minnesota law on public information policy, including government data practices and information technology issues. The task force consists of:

(1) two members of the senate appointed by the subcommittee on committees of the committee on rules and administration;

(2) two members of the house of representatives appointed by the speaker;

(3) four members appointed by the governor;

(4) two nonlegislative members appointed by the committee on rules and administration of the senate; and

(5) two nonlegislative members appointed by the speaker of the house of representatives.

At least one member from each body must be a member of the majority party and at least one member from each body must be a member of the minority party.

Subd. 2. [DUTIES; REPORT.] The task force shall study:

(1) the content and organization of government data practices statutes in Minnesota Statutes, chapter 13, and related statutes dealing with access to government data, fair information practices, and privacy;

(2) issues related to surveillance and other forms of information technology, including the impact of technology on data practices and privacy;

(3) procedures and structures for developing and implementing a coherent and coordinated approach to public information policy;

(4) the advisability of changing the government data practices act under Minnesota Statutes, chapter 13, to remove barriers to integrated service delivery in order to allow interagency sharing of client information;

(5) approaches to information policy in other states and foreign jurisdictions; and

In its study of statutes under clause (1), the task force shall include an evaluation to determine whether any statutes are inconsistent or obsolete.

The task force shall report its findings and recommendations, including any proposed legislation, to the legislature by February 1, 1998.

Subd. 3. [SUPPORT.] The commissioner of administration and the director of the office of strategic and long-range planning shall provide staff and other support services to the task force. The executive director of the office of technology or a designee shall assist in the study. Legislative support to the task force must come from existing resources.

Subd. 4. [EXPIRATION.] The task force expires June 30, 1998.

Sec. 103. [ESTABLISHMENT OF INTERIM ECONOMIC STRATEGY GROUP.]

(a) By January 1, 1998, the director of the office of strategic and long-range planning shall convene an interim economic strategy group to define the structure of the economic policy council and the long-range vision for the Minnesota economy. The interim group shall be comprised of 16 members from the public and private sectors with demonstrated leadership and vision in the area of economic foundations with perspectives on global competitiveness. Eight members shall be appointed as follows: two by the governor, two by the speaker of the house of representatives, one by the minority leader of the house of representatives, two by the president of the senate and one by the senate minority leader. These eight members shall appoint eight additional members.

(b) The interim group shall report its findings and recommendations to the legislature by January 1, 1999. The report shall include recommendations for legislative action regarding establishment of and appropriations for a permanent economic policy council.

Sec. 104. [RULE VOID.]

(a) That portion of Minnesota Rules, part 1350.7300, subpart 2, which requires that commercial office space must be separated from other areas of the building by floor-to-ceiling walls is void.

(b) The commissioner of administration shall amend Minnesota Rules, part 1350.7300, subpart 2, to conform with paragraph (a). This amendment may be done in the manner specified in Minnesota Statutes, section 14.388, clause (3), or may be done the next time the commissioner proposes other amendments to rules relating to the state building code or manufactured homes.

Sec. 105. [INSTRUCTION TO REVISOR.]

The revisor of statutes shall change the term "ethical practices board" to "board of public disclosure" wherever it appears in Minnesota Statutes and Minnesota Rules.

Sec. 106. [REPEALER.]

(a) Minnesota Statutes 1996, sections 16A.102; 116C.80; and 138.35, subdivision 3, are repealed.

(b) Minnesota Statutes 1996, section 16B.58, subdivision 8, is repealed.

Sec. 107. [EFFECTIVE DATES.]

Section 1. [4A.08] [COMMUNITY-BASED PLANNING GOALS.]

The goals of community-based planning are:

(1) [CITIZEN PARTICIPATION.] To develop a community-based planning process with broad citizen participation in order to build local capacity to plan for sustainable development and to benefit from the insights, knowledge, and support of local residents. The process must include at least one citizen from each affected unit of local government;

(2) [ECONOMIC DEVELOPMENT.] To create sustainable economic development strategies and provide economic opportunities throughout the state that will achieve a balanced distribution of growth statewide;

(3) [CONSERVATION.] To protect, preserve, and enhance the state's resources, including agricultural land, forests, surface water and groundwater, recreation and open space, native biodiversity and ecosystems, scenic areas, and significant historic and archaeological sites;

(4) [LIVABLE COMMUNITY DESIGN.] To strengthen communities by following the principles of livable community design in development and redevelopment, including integration of all income and age groups, mixed land uses and compact development, affordable and life-cycle housing, green spaces, access to public transit, bicycle and pedestrian ways, and enhanced aesthetics and beauty in public spaces;

(5) [HOUSING.] To provide and preserve an adequate supply of affordable and life-cycle housing throughout the state;

(6) [TRANSPORTATION.] To focus on the movement of people and goods, rather than on the movement of automobiles, in transportation planning, and to maximize the efficient use of the transportation infrastructure by increasing the availability and use of appropriate public transit throughout the state through land-use planning and design that makes public transit economically viable and desirable;

(7) [LAND-USE PLANNING.] To establish a community-based framework as a basis for all decisions and actions related to land use;

(8) [PUBLIC INVESTMENTS.] To ensure that funding required for new or improved infrastructure needed to accommodate new development, including, but not limited to, roads, water, sewers and sewage treatment facilities, schools, and recreation areas, will be available before proceeding with the new development;

(9) [PUBLIC EDUCATION.] To support research and public education on a community's and the state's finite capacity to accommodate growth, and the need for planning and resource management that will sustain growth; and

(10) [SUSTAINABLE DEVELOPMENT.] To provide a better quality of life for all residents while maintaining nature's ability to function over time by minimizing waste, preventing pollution, promoting efficiency, and developing local resources to revitalize the local economy.

Sec. 2. [4A.09] [TECHNICAL ASSISTANCE.]

The office shall provide local governments technical and financial assistance in preparing their comprehensive plans to meet the community-based planning goals in section 4A.08. Joint planning districts, formed under section 394.232, subdivision 4, or 462.3535, subdivision 3, must receive priority for technical or financial assistance.

Sec. 3. [4A.10] [PLAN REVIEW AND APPROVAL.]

Sec. 4. [394.232] [COMMUNITY-BASED PLANNING.]

Subdivision 1. [GENERAL.] A county may prepare a comprehensive plan that meets the goals of community-based planning in section 4A.08. The requirements of this section only apply to a county that determines to prepare a community-based plan and seek funding from the office of strategic and long-range planning for community-based planning.

Subd. 2. [COORDINATION.] A county that prepares a community-based plan shall coordinate its plan with the plans of its neighbors and its constituent municipalities and towns in order both to prevent its plan from having an adverse impact on other jurisdictions and to complement plans of other jurisdictions. The county's plan must incorporate the community-based plan of any municipality or town in the county.

Subd. 3. [REVIEW AND APPROVAL.] The county shall submit its community-based plan to the office of strategic and long-range planning for review and approval. The county shall not adopt or implement the plan until it has been approved.

Subd. 4. [JOINT PLANNING.] Under the joint exercise of powers provisions in section 471.59, a county may establish a joint planning district with other counties, municipalities, and towns, that are geographically contiguous, to adopt a single community-based plan for the district. The county may delegate its authority to adopt official controls under this chapter, to the board of the joint planning district.

Subd. 5. [PLAN UPDATE.] The county board, or the board of the joint planning district, shall review and update the community-based comprehensive plan periodically, but at least every ten years, and submit the updated plan to the office of strategic and long-range planning for review and approval.

Sec. 5. Minnesota Statutes 1996, section 394.24, subdivision 1, is amended to read:

Subdivision 1. [ADOPTED BY ORDINANCE.] Official controls which shall further the purpose and objectives of the comprehensive plan and parts thereof shall be adopted by ordinance. The board shall not adopt or implement official controls that are inconsistent or in conflict with the adopted comprehensive plan. If a comprehensive plan is in conflict with an official control, the official control must be brought into conformance with the plan by the board. The comprehensive plan must provide guidelines for the timing and sequence of the adoption of official controls to ensure planned, orderly, and staged development and redevelopment consistent with the comprehensive plan.

Sec. 6. [462.3535] [COMMUNITY-BASED PLANNING.]

Subdivision 1. [GENERAL.] A municipality may prepare a community-based comprehensive municipal plan that meets the goals of community-based planning in section 4A.08. The requirements of this section only apply to a municipality that determines to prepare a community-based plan and seek funding from the office of strategic and long-range planning for community-based planning.

Subd. 2. [COORDINATION.] A municipality that prepares a community-based comprehensive municipal plan shall coordinate its plan with the plans, if any, of the county and the municipality's neighbors both in order to prevent the plan from having an adverse impact on other jurisdictions and to complement the plans of other jurisdictions. The municipality shall prepare its plan to be incorporated into the county's community-based plan, if the county is preparing or has prepared one, and shall otherwise assist and cooperate with the county in its community-based planning.

Subd. 3. [JOINT PLANNING.] Under the joint exercise of powers provisions in section 471.59, a municipality may establish a joint planning district with other municipalities or counties that are geographically contiguous, to adopt a single community-based plan for the district. A municipality may delegate its authority to adopt official controls under sections 462.351 to 462.364, to the board of the joint planning district.

Sec. 7. Minnesota Statutes 1996, section 462.357, subdivision 2, is amended to read:

subdivisions 3, 4 and 5, the governing body may adopt and amend a zoning ordinance by a two-thirds vote of all its members. If the comprehensive municipal plan is in conflict with the zoning ordinance, the zoning ordinance supersedes the plan. The governing body may not adopt or implement official controls that are inconsistent or conflict with the adopted comprehensive municipal plan. If a comprehensive municipal plan is in conflict with an official control, the official control must be brought into conformance with the plan by the governing body. The plan must provide guidelines for the timing and sequence of the adoption of official controls to ensure planned, orderly, and staged development and redevelopment consistent with the plan.

Sec. 8. [473.1455] [METROPOLITAN DEVELOPMENT GUIDE GOALS.]

The metropolitan council shall amend the metropolitan development guide, as necessary, to reflect and implement the community-based planning goals in section 4A.08. The office of strategic and long-range planning shall review and comment on the metropolitan development guide. The council may not approve local comprehensive plans or plan amendments after July 1, 1999, until the metropolitan council has received and considered the comments of the office of strategic and long-range planning.

Sec. 9. [ADVISORY COUNCIL ON COMMUNITY-BASED PLANNING.]

Subdivision 1. [ESTABLISHMENT; PURPOSE.] An advisory council on community-based planning is established to provide a forum for discussion and development of the framework for community-based planning and the incentives and tools to implement the plans.

Subd. 2. [DUTIES.] The advisory council shall propose legislation for the 1998 legislative session to establish the framework to implement community-based planning. The advisory council shall:

(1) develop a model process to involve citizens in community-based planning from the beginning of the planning process;

(2) hold meetings statewide to solicit advice and information on how to implement community-based planning;

(3) develop specific, measurable criteria by which plans will be reviewed for consistency with the goals in section 4A.08, and approved by the office of strategic and long-range planning;

(4) recommend a procedure for review and approval of community-based plans;

(5) recommend a process for coordination of plans among local jurisdictions;

(6) recommend an alternative dispute resolution method for citizens and local governments to use to challenge proposed plans or the implementation of plans;

(7) recommend incentives to encourage state agencies to implement the goals of community-based planning;

(8) recommend incentives for local governments to develop community-based plans, including for example, assistance with computerized geographic information systems, builders' remedies and density bonuses, and revised permitting processes;

(9) describe the tools and strategies that a county may use to achieve the goals, including, but not limited to, densities, urban growth boundaries, purchase or transfer of development rights programs, public investment surcharges, transit and transit-oriented development, and zoning and other official controls;

(10) recommend the time frame in which the community-based plans must be completed;

(11) consider the need for ongoing stewardship and oversight of sustainable development initiatives and the community-based planning process; and

Subd. 3. [MEMBERSHIP.] The advisory council consists of 22 members who serve at the pleasure of the appointing authority as follows:

(1) two members of the majority caucus of the house of representatives appointed by the speaker, and two members of the minority caucus appointed by the minority leader;

(2) four members of the senate appointed by the committee on rules and administration of the senate, two of whom shall be members of the minority caucus;

(3) the commissioners, or their designees, of the departments of natural resources, agriculture, transportation, and trade and economic development, and the director, or the director's designee, of the office of strategic and long-range planning;

(4) the chair of the metropolitan council;

(5) four public members, who are knowledgeable about and have experience in local government issues and planning, appointed by the speaker of the house of representatives; and

(6) four public members, who are knowledgeable about and have experience in local government issues and planning, appointed by the committee on rules and administration of the senate.

The advisory council may form an executive committee to facilitate the work of the council.

Subd. 4. [FIRST MEETING; CHAIR.] The director of the office of strategic and long-range planning, or the director's designee, shall convene the first meeting of the advisory council. At its first meeting, the advisory council shall select from among its members a person to serve as chair.

Subd. 5. [ADMINISTRATION.] The office of strategic and long-range planning, with assistance from other state agencies and the metropolitan council as needed, shall provide administrative and staff assistance to the advisory council. The attorney general shall provide advice on legal issues to the advisory council.

Subd. 6. [EXPIRATION.] This section expires June 30, 1998.

Sec. 10. [CITATION.]

Sections 1 to 9 may be cited as the "Community-based Planning Act."

Sec. 11. [APPLICATION.]

Minnesota Statutes, section 473.1455, applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 12. [EFFECTIVE DATES.]

Sections 1, 9, and 10 are effective the day after final enactment. Sections 2 to 8, and 11 are effective July 1, 1998.

Section 1. [PILOT PROJECTS ESTABLISHED.]

Sec. 2. [DEFINITIONS.]

Subdivision 1. [APPLICABILITY.] Except as otherwise provided in this article, the definitions in Minnesota Statutes, sections 394.22 and 462.352, apply to this article.

Subd. 2. [CITIZEN.] "Citizen" means a person who resides within the jurisdiction, who is not on the governing body of the county, city, town, or joint planning district.

Subd. 3. [CITY.] "City" means a statutory or home rule charter city.

Subd. 4. [GOALS.] "Goals" means the goals established in section 3.

Subd. 5. [GOVERNING BODY.] "Governing body" means the governing body of the county, city, town, or joint planning district.

Subd. 6. [OFFICE.] "Office" means the office of strategic and long-range planning.

Subd. 7. [PLAN OR COMPREHENSIVE PLAN.] "Plan" or "comprehensive plan" means a plan meeting the requirements of Minnesota Statutes, chapter 394, for counties, Minnesota Statutes, sections 462.351 to 462.364, for cities and towns, and the requirements of this article.

Subd. 8. [URBAN GROWTH AREA.] "Urban growth area" means the area designated in the comprehensive plan for a city within which there is a sufficient supply of developable land for at least a prospective 20-year period, based on demographic forecasts and the density at which the city wishes to develop.

Sec. 3. [PLANNING GOALS.]

Subdivision 1. [GOALS.] The ten goals of comprehensive land use planning are as stated in subdivisions 2 to 10.

Subd. 2. [CITIZEN PARTICIPATION.] Develop a planning process with broad citizen participation in order to build local capacity to plan for sustainable development and to benefit from the insights, knowledge, and support of local residents. The process must include at least one citizen from each affected unit of local government.

Subd. 3. [COOPERATION.] Promote cooperation among communities to:

(1) work towards the most efficient, planned, and cost-effective delivery of governmental services by, among other means, facilitating cooperative agreements among adjacent communities; and

(2) coordinate planning to ensure compatibility of one community's development with the development of neighboring communities.

Subd. 4. [ECONOMIC DEVELOPMENT.] Create sustainable economic development strategies and provide economic opportunities throughout the state that will achieve a balanced distribution of growth statewide.

Subd. 5. [PUBLIC INVESTMENT.] Identify the full environmental, social, and economic costs of new development, including infrastructure costs such as transportation, sewers and wastewater treatment, water, schools, recreation, and open space, and ensure the funds necessary to cover the costs of the infrastructure will be available.

Subd. 6. [LIVABLE COMMUNITY DESIGN.] Strengthen communities by following the principles of livable community design, which includes planning for the efficient use of land resources through the use of compact and mixed-use development, open spaces, integration of differing housing types to serve all income and age groups, access to public transit, bicycle and pedestrian ways, and enhanced aesthetics and beauty in public spaces.

Subd. 8. [CONSERVATION.] Protect, preserve, and enhance the state's resources, including agricultural land, forests, surface water and groundwater, recreation and open space, native species and ecosystems, scenic areas, and significant historic and archaeological sites.

Subd. 9. [HOUSING.] Provide and preserve an adequate supply of affordable and life-cycle housing throughout the state.

Subd. 10. [TRANSPORTATION.] Focus on the movement of people and goods, rather than on the movement of automobiles, in transportation planning, and maximize the efficient use of the transportation infrastructure by increasing the availability and use of appropriate public transit throughout the state through land use planning and design that makes public transit economically viable and desirable.

Subd. 11. [COMMUNITY IDENTITY.] Respect and foster diversity among communities and permit communities to maintain individual and separate identities and character consistent with state law.

Sec. 4. [JOINT PLANNING DISTRICT.]

Under the joint exercise of powers provisions in Minnesota Statutes, section 471.59, a county, city, or town may establish a joint planning district with other counties, cities, and towns that are geographically contiguous to adopt a single comprehensive plan for the district. A county, city, or town may delegate its authority to adopt official controls to the board of the joint planning district.

Sec. 5. [COUNTY OR JOINT PLANNING DISTRICT PLAN REQUIREMENTS.]

Subdivision 1. [ELECTION TO PARTICIPATE.] If the governing body of a county or joint planning district elects to participate in planning under this article, it must prepare and adopt a comprehensive plan that meets the requirements of this section, in addition to any other requirements in law.

Subd. 2. [GENERAL.] The governing body shall prepare and submit to the office for review and comment a comprehensive plan and official controls to implement the plan.

Subd. 3. [GOALS; PLAN INCORPORATION.] The plan must address the goals and incorporate the comprehensive municipal plan for each city and town in the county or district.

Subd. 4. [RURAL DENSITIES.] The plan must ensure that land outside an urban growth area is zoned as permanent rural or agricultural land, developed at a density of no more than one dwelling unit in 40 acres, unless clauses (1), (2), and (3) apply:

(1) under the county's or the district's land evaluation site assessment system factors, the land is not suitable for permanent rural or agricultural zoning;

(2) the potentially affected school districts have submitted written comments concerning the operating and capital costs that they may incur over the next 20 to 40 years if the land is developed at a higher density and the governing body has considered the comments; and

(3) the governing body and the office find that the exception is consistent with the goals.

Subd. 5. [TIME FRAME.] The governing body shall submit the plan to the office within 30 months of being selected to participate in the pilot project.

Subd. 7. [PERIODIC REVIEW AND UPDATE.] The governing body shall review and update the comprehensive plan periodically, but at least every ten years, and submit it to the office for review and comment. The updated plan must meet the same requirements as initial plans under this section.

Subd. 8. [GOVERNING BODY RESPONSE.] The governing body shall respond to any comments of the office that state that the plan does not address the goals and justify or change the plan provisions in question within 60 days of receipt of the office's comments.

Subd. 9. [ADJACENT COUNTIES; REVIEW AND COMMENT.] The governing body shall submit its proposed comprehensive plan to adjacent counties for review and comment at least six months before submitting the plan to the office. The governing body shall resubmit its proposed plan to adjacent counties at the same time it submits the plan to the office.

Subd. 10. [METROPOLITAN COUNCIL; REVIEW AND COMMENT.] The governing body of a county or district adjacent to the metropolitan area shall submit its proposed comprehensive plan to the metropolitan council for review and comment at least six months before submitting the plan to the office. The governing body shall resubmit its proposed plan to the metropolitan council at the same time it submits the plan to the office.

Subd. 11. [PLAN ADOPTION.] Within 30 days of receiving the office's comments or submitting the governing body's response to the comments, whichever is later, the governing body shall adopt and implement the plan.

Subd. 12. [LIMITATION ON PLAN AMENDMENT.] The governing body shall not amend its plan for an area inside an urban growth area that is outside the city's jurisdiction without the city's approval.

Subd. 13. [PLANNING FOR TOWNS.] If the governing body of a town does not prepare and adopt for the town a comprehensive plan and official controls consistent with the plan, the county or district governing body shall do so. A county or district may not require reimbursement of expenses by the town for planning.

Subd. 14. [COUNTY TO PREPARE PLAN.] If a city in a county or joint planning district does not prepare a comprehensive municipal plan under section 6, the county or district shall prepare a plan for the city that shall be incorporated into the county's or district's plan. The city shall adopt the plan as provided in section 6, subdivision 6.

Sec. 6. [CITY PLANNING REQUIREMENTS.]

Subdivision 1. [URBAN GROWTH AREA.] (a) The comprehensive municipal plan for a city and official controls to implement the plan must address the goals and establish an urban growth area for the urbanized and urbanizing area.

(b) Within the urban growth area, the plan must provide for the staged provision of urban services, including, but not limited to, water, wastewater collection and treatment, and transportation.

(c) Outside the urban growth area, the plan must not provide urban services and the land must be maintained as permanent rural or agricultural land, developed at a density of not more than one dwelling unit in 40 acres, unless clauses (1), (2), and (3) apply:

(1) under the county's or joint planning district's land evaluation site assessment system factors, the land is not suitable for permanent rural or agricultural zoning;

(2) the potentially affected school districts have submitted written comments concerning the operating and capital costs that they may incur over the next 20 to 40 years if the land is developed at a higher density and the city has considered the comments; and

(3) the county or district and the office find that the exception is consistent with the goals.

Subd. 2. [URBAN GROWTH AREA PROCESS.] (a) A city that develops an urban growth area beyond its current corporate boundaries in an unincorporated area as part of its comprehensive municipal plan shall include in the plan a boundary adjustment staging plan. The plan must establish a time schedule, over the subsequent 20-year period, for the boundary adjustment of the unincorporated area located between the urban growth area designated in the plan and the city's existing corporate limits. The boundary adjustment staging plan must be negotiated as part of the comprehensive planning process with the county or district and the townships with unincorporated areas located within the designated urban growth area.

(b) After a city's comprehensive municipal plan is approved under this section, the boundary adjustment staging plan approved as part of the comprehensive plan must be filed with the Minnesota municipal board.

(c) When a comprehensive municipal plan is updated, the boundary adjustment staging plan included in the plan must be adjusted accordingly and refiled with the Minnesota municipal board. A refiled boundary adjustment staging plan supersedes a previously filed staging plan.

Subd. 3. [ADJACENT CITIES; REVIEW AND COMMENT.] At least six months before a comprehensive municipal plan is incorporated into the county's or district's plan under section 5, the city must submit its proposed comprehensive municipal plan to adjacent cities for review and comment. The city must resubmit its plan to adjacent cities at the same time it submits the plan to the county or district for incorporation into the county or district plan.

Subd. 4. [COUNTY OR DISTRICT APPROVAL.] If a city plans for growth beyond its current boundaries, the city's proposed comprehensive municipal plan and proposed urban growth area must be reviewed and approved by the county or the district before the plan is incorporated into the county's or district's plan.

Subd. 5. [APPROVAL PROCESS; CONFLICT RESOLUTION.] (a) Upon receipt by the county or district of a comprehensive municipal plan submitted by a city for review and approval under subdivision 4, the county or district shall, within 30 days of receipt of a city plan, review and approve the plan in accordance with this subdivision. The county or district shall approve the city plan if it addresses the goals.

(b) If the county or district approves the city plan, the county or district shall, within 15 days of approval, submit the city's plan, along with a resolution of the county or district board approving the city plan and incorporating the city plan by reference into the county or district comprehensive plan, to the office for final review and comment under subdivision 6. The city shall adopt the plan as provided in subdivision 6.

(c) If the county or district does not approve the city's plan, it shall notify the city within five days of the decision, stating the reasons for disapproval and what is needed for the plan to address the goals. The city may amend the plan and resubmit the plan to the county or district. The county or district has an additional 30 days to review and approve a resubmitted plan. The city may challenge any decision of the county or district at any point by filing a written request for mediation of the dispute with the county or district. Within 30 days of filing the request, the city and county or district shall submit to mediation facilitated by the office for a period of 30 days.

(d) If the dispute remains unresolved after mediation, the city may appeal the decision by filing a contested case with the office of administrative hearings under Minnesota Statutes, chapter 14. The office of administrative hearings shall schedule the matter for hearing within 30 to 60 days of receipt of a request for review. The administrative law judge shall consider the decision of the county or district, considering the goals and the following factors with respect to the reasonableness of the designated urban growth area established in the plan that has been objected to by the county or district:

(1) the present population and population trends for the county, city, and area within the designated urban growth area;

(2) the present pattern of physical development in the city and the area within the designated urban growth;

(3) the reasonableness of past and projected building permit trends and any projected or pending development proposals in the city or the area within the designated urban growth area;

(5) the available developable land remaining within corporate boundaries taking into consideration wetlands, forested areas, lakes, streams, rivers, bluffs, bogs, parks and open space areas, soil conditions, and slope conditions;

(6) the reasonableness of the projected 20-year supply of land;

(7) fiscal data, including, but not limited to, tax capacity information, service delivery information, and state aids; and

(8) the adequacy of existing governmental services in the area within the designated urban growth area.

(e) Any party may present evidence and testimony on any of the above factors or goals to the administrative law judge. The administrative law judge, after a hearing on the matter, shall make a decision regarding the dispute. If the city's comprehensive municipal plan addresses the goals and the administrative law judge finds that the city's projected estimates found in its comprehensive plan are reasonable with respect to the urban growth area, the administrative law judge shall order approval of the city plan.

(f) The administrative law judge shall make a decision within 60 days of hearing the matter and transmit the order to the city, county or district, and office. If the order is to approve the comprehensive plan, the order must contain notice directing the county or district to approve the city plan within ten days of receipt of the administrative law judge's order. The city shall thereafter adopt the comprehensive plan pursuant to subdivision 6.

(g) If the order is not to approve the city's comprehensive municipal plan, the administrative law judge shall state the reasons for the denial in the order and transmit the order to the city, county or district, and office. The city shall, within 30 days of receipt of the order, amend its comprehensive plan and resubmit the plan to the county or district for review and approval pursuant to this subdivision. The county or district shall not unreasonably withhold approval of the plan if the resubmitted city plan is in keeping with the administrative law judge's order.

(h) Any party may appeal an order of the administrative law judge to the court of appeals.

Subd. 6. [PLAN ADOPTION.] The city shall adopt and implement the comprehensive municipal plan after the office has reviewed and commented on the county's or district's plan that incorporates the city's plan. The office shall notify the city and the county or district that it has reviewed the plan and provide the city and the county or district any comments on the city's plan within 30 days of receiving the plan. After receipt of the notice and any comments from the office, the city shall adopt the plan within 30 days.

Sec. 7. [COMPREHENSIVE PLAN REVIEW AND COMMENT.]

The office shall review and comment on each county's or joint planning district's comprehensive plan submitted to the office. The office shall review each plan to determine if it addresses the goals. The office shall complete its review and comment within 60 days of receipt of the plan.

Section 1. Minnesota Statutes 1996, section 115.49, is amended by adding a subdivision to read:

Sec. 2. Minnesota Statutes 1996, section 414.0325, subdivision 1, is amended to read:

Subdivision 1. [INITIATING THE PROCEEDING.] One or more townships and one or more municipalities, by joint resolution, may designate an unincorporated area as in need of orderly annexation. The joint resolution will confer jurisdiction on the board over annexations in the designated area and over the various provisions in said agreement by submission of said joint resolution to the executive director. The resolution shall include a description of the designated area and the reasons for designation. Thereafter, an annexation of any part of the designated area may be initiated by:

(1) submitting to the executive director a resolution of any signatory to the joint resolution; or

(2) the board of its own motion; or

(3) as provided in section 414.033, subdivision 2a.

Whenever the pollution control agency or other a state agency pursuant to sections 115.03, 115.071, 115.49, or any law giving a state agency similar powers other than the pollution control agency, orders a municipality to extend a municipal service to an area, such an order will confer jurisdiction on the Minnesota municipal board to consider designation of the area for orderly annexation.

If a joint resolution designates an area as in need of orderly annexation and states that no alteration of its stated boundaries is appropriate, the board may review and comment, but may not alter the boundaries.

If a joint resolution designates an area as in need of orderly annexation, provides for the conditions for its annexation, and states that no consideration by the board is necessary, the board may review and comment, but shall, within 30 days, order the annexation in accordance with the terms of the resolution.

Sec. 3. Minnesota Statutes 1996, section 414.033, subdivision 2b, is amended to read:

Subd. 2b. [NOTICE REQUIRED.] Before a municipality may adopt an ordinance under subdivision 2, clause (2), (3), or (4), or subdivision 2a, a municipality must hold a public hearing and give 30 days' written notice by certified mail to the town or towns affected by the proposed ordinance and to all landowners within and contiguous to the area to be annexed.

Sec. 4. Minnesota Statutes 1996, section 414.033, subdivision 11, is amended to read:

Subd. 11. [FLOODPLAIN; SHORELAND AREA.] When a municipality declares land annexed to the municipality under subdivision 2, clause (3), or subdivision 2a, and the land is within a designated floodplain, as provided by section 103F.111, subdivision 4, or a shoreland area, as provided by section 103F.205, subdivision 4, the municipality shall adopt or amend its land use controls to conform to chapter 103F, and any new development of the annexed land shall be subject to chapter 103F.

Sec. 5. Minnesota Statutes 1996, section 414.033, subdivision 12, is amended to read:

Sec. 6. [414.0335] [ORDERED GOVERNMENTAL SERVICE EXTENSION; ANNEXATION BY ORDINANCE.]

If the pollution control agency determines or orders, under section 115.49 or other similar statute, that cooperation by contract is necessary and feasible between a municipality and an unincorporated area located outside the existing corporate limits of a municipality, the municipality may declare the unincorporated area described in the pollution control agency's determination letter or order annexed to the municipality, as an alternative to formulating a service contract to provide or extend the service. The municipality must adopt an ordinance for annexation and submit it to the municipal board within the 90-day period provided under section 115.49 to formulate a contract. The municipal board may review and comment on the ordinance but shall approve the ordinance within 30 days of receipt. The ordinance is final and the annexation is effective on the date the municipal board approves the ordinance. Thereafter, the city shall amend its comprehensive plan and official controls in accordance with section 462.3535.

Sec. 7. [414.10] [ALTERNATIVE PROCESS OF DISPUTE RESOLUTION.]

Subdivision 1. [DEFINITION.] For the purposes of subdivision 2, a "party" means a property owner or the governing body or town board of a jurisdiction that files an initiating document or a timely objection, and the governing body or town board of the jurisdiction or jurisdictions in which the subject area is located.

Subd. 2. [CHAPTER 572A PROCESS.] As an alternative to the procedure provided by this chapter, a party filing an initiating document or timely objection may file with the bureau of mediation services a written request for mediation within 30 days of the filing as provided in section 572A.015. The request for mediation must contain the written consent of all parties to have the dispute settled through the process provided by chapter 572A. The filing party must also file written notice with the municipal board notifying the board that all parties have agreed to use the dispute resolution process in chapter 572A.

Sec. 8. [414.11] [MUNICIPAL BOARD SUNSET; TRANSFER.]

The municipal board shall terminate on December 31, 1999, and all of its authority and duties under this chapter shall be transferred to the office of strategic and long-range planning according to section 15.039.

Sec. 9. [REPEALER.]

Minnesota Statutes 1996, section 414.033, subdivision 2a, is repealed.

Sec. 10. [EFFECTIVE DATE.]

This article is effective the day following final enactment.

Section 1. [572A.01] [COMPREHENSIVE PLANNING DISPUTES; MEDIATION.]

Subdivision 1. [FILING.] In the event of a dispute between a county and the office of strategic and long-range planning under section 394.232 or a county and a city under section 462.3535, regarding the development, content, or approval of a community-based comprehensive land use plan, an aggrieved party may file a written request for mediation, as provided in subdivision 2, with the office of strategic and long-range planning at any time prior to a final action on a community-based comprehensive plan or within 30 days of a final action on a community-based comprehensive plan.

Sec. 2. [572A.015] [CHAPTER 414 DISPUTES; MEDIATION.]

Subdivision 1. [FILING.] As provided by section 414.10, if an initiating document or timely objection under chapter 414 is filed with the municipal board, the filing party, jurisdiction, or jurisdictions may also file a written request for mediation with the bureau of mediation services within 30 days of the initiating document or timely objection. The request for mediation must contain the written consent to the mediation and arbitration process by all the parties, as defined in section 414.10, subdivision 1.

Subd. 2. [MEDIATION.] Within ten days of receiving a request for mediation, the bureau shall provide written notice of the request for mediation to the parties. Within 30 days thereafter, the affected parties, as defined in section 414.10, subdivision 1, shall submit to mediation for a period of 30 days facilitated by the bureau. If the dispute remains unresolved after the close of the 30-day mediation period, the bureau shall prepare a report of its recommendations and transmit the report within 30 days to the parties. Within 60 days after the date of issuance of the mediator's report, the dispute shall be submitted to binding arbitration as provided in this chapter. The mediator's report submitted to the parties is informational only and is not admissible in arbitration.

Sec. 3. [572A.02] [ARBITRATION.]

Subdivision 1. [SUBMITTAL TO BINDING ARBITRATION.] If a dispute remains unresolved after the close of mediation, the dispute shall be submitted to binding arbitration within 60 days of issuance of the mediation report pursuant to the terms of this section and the Uniform Arbitration Act, sections 572.08 to 572.30, except the period may be extended for an additional 15 days as provided in this section. In the event of a conflict between the provisions of the Uniform Arbitration Act and this section, this section controls.

Subd. 2. [APPOINTMENT OF PANEL.] (a) The parties shall each appoint one qualified arbitrator within 30 days of issuance of the mediation report. If a party does not appoint an arbitrator within 30 days, the office of strategic and long-range planning for disputes under section 572A.01 or the bureau of mediation services for disputes under section 572A.015, shall appoint a qualified arbitrator for the party. The parties shall notify the office prior to the close of the 30-day appointment period of the name and address of their respective appointed arbitrator. Each party is responsible for the fees and expenses for the arbitrator it selects.

(b) After appointment of the two arbitrators to the arbitration panel by the parties, or by the office or bureau should one or both of the parties fail to act, the two appointed arbitrators shall appoint a third arbitrator, who must be learned in the law, within 15 days of the close of the initial 30-day arbitrator appointment period. If the arbitrators cannot agree on the selection of the third arbitrator within 15 days, the arbitrators shall jointly submit a request to the district court of the county in which the disputed area is located in accordance with the selection procedures established in section 572.10. Within 15 days of receipt of an application by the district court, the district court shall select a neutral arbitrator and notify the parties and the office of strategic and long-range planning or bureau of mediation services of the name and address of the selected arbitrator. The fees and expenses of the third arbitrator shall be shared equally by the parties. The third appointed arbitrator shall act as chair of the arbitration panel and shall conduct the proceedings. If the district court selects the third arbitrator, the date required for first hearing the matter may be extended an additional 15 days.

Subd. 3. [HEARING.] Except as otherwise provided, the matter must be brought on for hearing in accordance with section 572.12 within 60 days. The office of strategic and long-range planning or bureau of mediation services shall provide for the proceedings to occur in the county in which the majority of the affected property is located.

Subd. 4. [CONTRACTS; INFORMATION.] The arbitration panel shall have authority to contract with regional, state, county, or local planning commissions or to hire expert consultants to provide specialized information and assistance. Any member of the panel conducting or participating in any hearing shall have the power to administer oaths and affirmations, to issue subpoenas, to compel the attendance and testimony of witnesses, and to compel the production of papers, books, and documents. Any costs related to this subdivision shall be shared equally by the parties.

Subd. 5. [DECISION FACTORS.] (a) In comprehensive planning disputes, the arbitration panel shall consider the goals stated in section 4A.08 and the factors in clauses (1) to (14) in making a decision. In all other disputes brought under this section, the arbitration panel shall consider the following factors in making a decision:

(2) the quantity of land within the subject area and adjacent units of local government, and the natural terrain, including recognizable physical features, general topography, major watersheds, soil conditions, and natural features such as rivers, lakes, and major bluffs;

(3) the degree of contiguity of the boundaries between the annexing municipality and the subject area;

(4) the present pattern of physical development, planning, and intended land uses in the subject area and the annexing municipality, including residential, industrial, commercial, agricultural, and institutional land uses, and the impact of the proposed action on those land uses;

(5) the present transportation network and potential transportation issues, including proposed highway development;

(6) land use controls and planning presently being utilized in the annexing municipality and the subject area, including comprehensive plans for development in the area and plans and policies of the metropolitan council, whether there are inconsistencies between proposed development and existing land use controls, and the reasons therefore;

(7) existing levels of governmental services being provided in the annexing municipality and the subject area, including water and sewer service, fire rating and protection, law enforcement, street improvements and maintenance, administrative services, and recreational facilities, and the impact of the proposed action on the delivery of said services;

(8) existing or potential environmental problems and whether the proposed action is likely to improve or resolve the problems;

(9) plans and programs by the annexing municipality for providing needed governmental services to the subject area;

(10) an analysis of the fiscal impact on the annexing municipality, the subject area, and adjacent units of local government, including net tax capacity and the present bonded indebtedness, and the local tax rates of the county, school district, and township;

(11) the relationship and effect of the proposed action on affected and adjacent school districts and communities;

(12) the adequacy of town government to deliver services to the subject area;

(13) an analysis of whether necessary governmental services can best be provided through the proposed action or another type of boundary adjustment; and

(14) if only a part of a township is annexed, the ability of the remainder of the township to continue or the feasibility of it being incorporated separately or being annexed to another municipality.

(b) Any party to the proceeding may present evidence and testimony on any of the above factors at the hearing on the matter.

Subd. 6. [DECISION.] The arbitrators, after a hearing on the matter, shall make a decision regarding the dispute within 60 days and transmit an order to the parties and the office of strategic and long-range planning or the municipal board. Unless appealed within 30 days of receipt of the arbitration panel's order by the municipal board, the municipal board shall execute an order in accordance with the arbitration panel's order and shall cause copies of the same to be mailed to all parties entitled to mailed notice, the secretary of state, the department of revenue, the state demographer, individual property owners if initiated in that manner, the affected county auditor, and any other party of record. The affected county auditor shall record the order against the affected property.

Sec. 4. [572A.03] [ARBITRATION PANEL DECISION STANDARDS.]

Subd. 2. [COMPREHENSIVE LAND USE PLANNING.] (a) For comprehensive land use planning disputes under section 462.3535, if a community-based comprehensive plan addresses the goals of section 4A.08 and the arbitrators find that the city's projected estimates found in its comprehensive plan are reasonable with respect to an identified urban growth area, the arbitration panel may order approval of the city plan.

(b) If the order is to approve the community-based comprehensive plan, the order shall contain notice directing the county to approve the city plan within ten days of receipt of the arbitration order. The city shall thereafter adopt the plan.

(c) If the order is to deny the plan, the arbitration order shall state the reasons for the denial in the order and transmit the order to the city, county, and the office of strategic and long-range planning. The city shall within 30 days of receipt of the order amend its plan and resubmit the plan to the county for review and approval under this subdivision.

(d) The county shall not unreasonably withhold approval of the plan if the resubmitted city plan is in keeping with the arbitration panel's order.

Subd. 3. [MUNICIPAL INCORPORATIONS.] (a) For municipal incorporations under section 414.02, the arbitration panel may order the incorporation if it finds that:

(1) the property to be incorporated is, or is about to become, urban or suburban in character;

(2) the existing township form of government is not adequate to protect the public health, safety, and welfare; or

(3) the proposed incorporation would be in the best interests of the area under consideration.

(b) The panel may deny the incorporation if the area, or a part of it, is better served by annexation to an adjacent municipality.

(c) The panel may alter the boundaries of the proposed incorporation by increasing or decreasing the area to be incorporated so as to include only that property that is, or is about to become, urban or suburban in character, or may exclude property that is better served by another unit of government. The panel may alter the boundaries of the proposed incorporation to follow visible, clearly recognizable physical features for municipal boundaries.

(d) In all cases, the panel shall set forth the factors which are the basis for its decision.

Subd. 4. [ANNEXATIONS OF UNINCORPORATED PROPERTY.] (a) For annexations of unincorporated property under section 414.031 or 414.033, subdivisions 3 and 5, the arbitration panel may order the annexation if it finds that:

(1) the subject area is, or is about to become, urban or suburban in character;

(2) municipal government in the area proposed for annexation is required to protect the public health, safety, and welfare; or

(3) the annexation is in the best interests of the subject area.

(b) If only a part of a township is to be annexed, the panel shall consider whether the remainder of the township can continue to carry on the functions of government without undue hardship.

(c) The panel shall deny the annexation if it finds that the increase in revenues for the annexing municipality bears no reasonable relation to the monetary value of benefits conferred upon the annexed area. The panel may deny the annexation if:

(1) it appears that annexation of all or a part of the property to an adjacent municipality better serves the interests of the residents of the property; or

(d) The panel may alter the boundaries of the area to be annexed by increasing or decreasing the area so as to include only that property that is or is about to become urban or suburban in character or to add property of that character abutting the area proposed for annexation to preserve or improve the symmetry of the area, or to exclude property that may better be served by another unit of government. The panel may alter the boundaries of the proposed annexation to follow visible, clearly recognizable physical features.

(e) If the panel determines that part of the area would be better served by another municipality or township, the panel may initiate and approve annexation on its own motion by conducting further hearings.

(f) In all cases, the arbitration panel shall set forth the factors that are the basis for its decision.

Subd. 5. [CONSOLIDATION OF MUNICIPALITIES.] For municipal consolidations under section 414.041, the arbitration panel shall consider and may accept, amend, return to the commission for amendment or further study, or reject the commission's findings and recommendations based upon the panel's written determination of what is in the best interests of the affected municipalities. The panel shall order the consolidation if it finds that consolidation will be for the best interests of the municipalities. In all cases, the arbitration panel shall set forth the factors that are the basis for its decision.

Subd. 6. [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] (a) For detachments of property from a municipality under section 414.06, the arbitration panel may order the detachment if it finds that:

(1) the requisite number of property owners have signed the petition if initiated by the property owners;

(2) the property is rural in character and not developed for urban residential, commercial, or industrial purposes;

(3) the property is within the boundaries of the municipality and abuts a boundary;

(4) the detachment would not unreasonably affect the symmetry of the detaching municipality; and

(5) the land is not needed for reasonably anticipated future development.

(b) The panel shall deny the detachment if it finds that the remainder of the municipality cannot continue to carry on the functions of government without undue hardship.

(c) The panel shall have authority to decrease the area of property to be detached and may include only a part of the proposed area to be detached.

(d) If the tract abuts more than one township, it shall become a part of each township, being divided by projecting through it the boundary line between the townships.

(e) The detached area may be relieved of the primary responsibility for existing indebtedness of the municipality. The detached area may be required to assume the indebtedness of the township of which it becomes a part, in the proportion that the panel deems just and equitable, considering the amount of taxes due and delinquent, the indebtedness of each township and the municipality affected, if any, and the purpose for which the indebtedness was incurred, in relation to the benefit inuring to the detached area as a result of the indebtedness and the last net tax capacity of the taxable property in each township and municipality.

Subd. 7. [CONCURRENT DETACHMENT AND ANNEXATION OF INCORPORATED PROPERTY.] For concurrent detachment and annexation of incorporated property under section 414.061, subdivisions 4 and 5, the arbitration panel shall order the proposed action if it finds that it is in the best interests of the municipalities and the property owner. In all cases, the board shall set forth the factors which are the basis for the decision.

Sec. 5. [EFFECTIVE DATE.]

Section 1. Minnesota Statutes 1996, section 8.31, subdivision 1, is amended to read:

Subdivision 1. [INVESTIGATE OFFENSES AGAINST THE PROVISIONS OF CERTAIN DESIGNATED SECTIONS; ASSIST IN ENFORCEMENT.] The attorney general shall investigate violations of the law of this state respecting unfair, discriminatory, and other unlawful practices in business, commerce, or trade, and specifically, but not exclusively, unfair price discrimination (section 151.061), the nonprofit corporation act (sections 317A.001 to 317A.909), the act against unfair discrimination and competition (sections 325D.01 to 325D.07), the unlawful trade practices act (sections 325D.09 to 325D.16), the antitrust act (sections 325D.49 to 325D.66), section 325F.67 and other laws against false or fraudulent advertising, the antidiscrimination acts contained in section 325D.67, the act against monopolization of food products (section 325D.68), the act regulating telephone advertising services (section 325E.39), the prevention of consumer fraud act (sections 325F.68 to 325F.70), and chapter 53A regulating currency exchanges and assist in the enforcement of those laws as in this section provided.

Sec. 2. [16B.93] [DEFINITIONS.]

Subdivision 1. [APPLICABILITY.] For purposes of sections 16B.93 to 16B.96, the terms in this section have the meanings given them.

Subd. 2. [CONTRACTOR.] "Contractor" means an individual, business entity, or other private organization that is awarded a contract by the commissioner to negotiate and administer the price contracts for prescription drugs under section 16B.94, subdivision 2.

Subd. 3. [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING ALLIANCE OR NONGOVERNMENTAL ALLIANCE.] "Nongovernmental pharmaceutical contracting alliance" or "nongovernmental alliance" means the alliance established and administered by the commissioner under the authority granted in section 16B.94.

Subd. 4. [MANUFACTURER.] "Manufacturer" means a manufacturer as defined under section 151.44, paragraph (c).

Subd. 5. [PRESCRIPTION DRUG.] "Prescription drug" means a drug as defined in section 151.44, paragraph (d).

Subd. 6. [PURCHASER.] "Purchaser" means a pharmacy as defined in section 151.01, subdivision 2, including pharmacies operated by health maintenance organizations and hospitals.

Subd. 7. [SELLER.] "Seller" means a person, other than a manufacturer, who sells or distributes drugs to purchasers or other sellers within the state.

Sec. 3. [16B.94] [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING ALLIANCE.]

Subdivision 1. [ESTABLISHMENT AND ADMINISTRATION.] The commissioner, in consultation with appropriate experts on pharmaceutical pricing, shall establish and administer a nongovernmental pharmaceutical contracting alliance. The nongovernmental alliance shall negotiate contracts for prescription drugs with manufacturers and sellers and shall make the contract prices negotiated available to purchasers. The commissioner shall select the prescription drugs for which price contracts are negotiated. The commissioner shall, to the greatest extent feasible, operate the alliance using the administrative and contracting procedures of the Minnesota multistate governmental contracting alliance for pharmaceuticals administered by the commissioner under the authority granted in section 471.59. The commissioner may negotiate a price differential based on volume purchasing and may also grant multiple awards.

Subd. 3. [ADMINISTRATIVE COSTS.] The commissioner may charge manufacturers and sellers that enter into prescription drug price contracts with the commissioner under subdivision 1 a fee to cover the commissioner's expenses in negotiating and administering the price contracts. The fee established shall have the force and effect of law if the requirements of section 14.386, paragraph (a), are met. Section 14.386, paragraph (b), does not apply. Fees collected by the commissioner under this subdivision must be deposited in the state treasury and credited to a special account. Money in the account is appropriated to the commissioner to pay the costs of negotiating and administering price contracts under this section.

Subd. 4. [EXPANSION TO OTHER STATES.] The commissioner may expand the nongovernmental alliance to other states and make the contract prices negotiated available to non-Minnesota purchasers.

Sec. 4. [16B.95] [STATE CONTRACT PRICE.]

Subdivision 1. [MANUFACTURER AND SELLER REQUIREMENT.] A manufacturer or seller that contracts with the commissioner shall make the contract price negotiated available to all purchasers.

Subd. 2. [PURCHASER REQUIREMENT.] The commissioner shall require purchasers that purchase prescription drugs at the contract price to pass at least 75 percent of the savings resulting from purchases at the negotiated contract price to consumers. The commissioner may require a purchaser that plans to purchase prescription drugs at the contract price negotiated by the commissioner to submit any information regarding prescription drug purchase projections the commissioner determines is necessary for contract price negotiations.

Sec. 5. [16B.96] [NONDISCRIMINATION.]

A health plan company, as defined in section 62Q.01, shall not discriminate against a purchaser for taking advantage of the contract price negotiated by the commissioner.

Sec. 6. [62J.685] [DISCLOSURE OF PRESCRIPTION DRUG REBATES.]

A health plan company or hospital licensed under chapter 144 shall annually submit to the attorney general the total amount of discount or rebate received during the previous calendar year for aggregate purchases of prescription drugs from a manufacturer as defined under section 151.44, paragraph (c), or wholesale drug distributor as defined under section 151.44, paragraph (b). Data submitted to the attorney general under this section are nonpublic data.

Sec. 7. Minnesota Statutes 1996, section 151.21, subdivision 2, is amended to read:

Subd. 2. When a pharmacist receives a written prescription on which the prescriber has personally written in handwriting "dispense as written" or "D.A.W. - brand medically necessary," or an oral prescription in which the prescriber has expressly indicated that the prescription is to be dispensed as communicated, the pharmacist shall dispense the brand name legend drug as prescribed. If the prescriber specifies orally that the prescription shall be dispensed as communicated, written certification in the prescriber's handwriting bearing the phrase "dispense as written - brand medically necessary" must be sent to the dispensing pharmacy within ten days.

Sec. 8. Minnesota Statutes 1996, section 151.21, subdivision 3, is amended to read:

Sec. 9. Minnesota Statutes 1996, section 151.21, is amended by adding a subdivision to read:

Subd. 4a. A pharmacy must post a sign in a conspicuous location and in a typeface easily seen at the counter where prescriptions are dispensed stating: "In order to save you money, this pharmacy will substitute whenever possible an FDA-approved, less expensive, generic drug product, which is therapeutically equivalent to and safely interchangeable with the one prescribed by your doctor, unless you object to this substitution.

Section 1. [16B.415] [OPERATION OF INFORMATION SYSTEMS.]

The commissioner of administration, through a division of technology management, is responsible for ongoing operations of state agency information technology activities. These include records management, activities relating to the government data practices act, operation of MNET, and activities necessary to make state information systems year 2000 compliant. The commissioner must carry out these duties in compliance with policies, standards, and practices developed under section 237A.01.

Sec. 2. Minnesota Statutes 1996, section 16B.46, is amended to read:

16B.46 [TELECOMMUNICATION INFORMATION AND TELECOMMUNICATIONS SYSTEMS; POWERS.]

The commissioner shall supervise and control consult with the Minnesota office of technology in the operation of all centralized state information and telecommunication systems facilities including any transmission, emission, or reception of signs, signals, writing, images, and sounds or intelligence of any nature by wire, radio, optical, or other electromagnetic systems the MNET and intertechnologies facilities. Nothing in this section modifies, amends, or abridges any powers and duties presently vested in or imposed upon the commissioner of transportation or the commissioner of public safety relating to telecommunications facilities or the commissioner of transportation relating only to radio air navigation facilities or other air navigation facilities.

Sec. 3. Minnesota Statutes 1996, section 16B.465, subdivision 1, is amended to read:

Subdivision 1. [CREATION.] The statewide MNET leases private telecommunications access routing system provides resources to provide voice, data, video, and other telecommunications transmission services to state agencies; educational institutions, including public schools as defined in section 120.05, nonpublic, church or religious organization schools which provide instruction in compliance with sections 120.101 to 120.102, and private colleges; public corporations; and state political subdivisions. It is not a telephone company for purposes of chapter 237. It shall not resell or sublease any services or facilities to nonpublic entities except it may serve private schools and colleges, but it may aggregate demand for public-private cooperatives. The commissioner has the responsibility for planning, development, and operations of a statewide telecommunications access routing system operating MNET in order to provide cost-effective telecommunications transmission services to system MNET users.

Sec. 4. Minnesota Statutes 1996, section 16B.465, subdivision 3, is amended to read:

Subd. 3. [DUTIES.] The commissioner, after consultation with the council Minnesota office of technology, shall:

(1) provide lease voice, data, video, and other telecommunications transmission services to for the state and to political subdivisions through an account in the intertechnologies revolving fund;

(2) manage vendor relationships, network function, and capacity planning in order to be responsive to the needs of the system users;

(4) approve contracts relating to the system;

(5) in consultation with the Minnesota office of technology, develop the system plan, including plans for the phasing of its implementation and maintenance of the initial system, and the annual program and fiscal plans for the system; and

(6) in consultation with the Minnesota office of technology, develop a plan for interconnection of the network with private colleges and public and private schools in the state.

Sec. 5. Minnesota Statutes 1996, section 16B.465, subdivision 4, is amended to read:

Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may require request the participation of state agencies, the state board of education, and the board of trustees of the Minnesota state colleges and universities and may request the participation of the board of regents of the University of Minnesota, in the planning and implementation of the network to provide interconnective technologies. The commissioner shall establish reimbursement rates in cooperation with the commissioner of finance to be billed to participating agencies and educational institutions sufficient to cover the operating, maintenance, and administrative costs of the system.

(b) A direct appropriation made to an educational institution for usage costs associated with the STARS MNET network must only be used by the educational institution for payment of usage costs of the network as billed by the commissioner of administration.

Sec. 6. Minnesota Statutes 1996, section 16B.465, subdivision 6, is amended to read:

Subd. 6. [REVOLVING FUND.] Money appropriated for the statewide telecommunications access routing system MNET and fees for telecommunications services must be deposited in an account in the intertechnologies revolving fund. Money in the account is appropriated annually to the commissioner to operate telecommunications services.

Sec. 7. [237A.01] [MINNESOTA OFFICE OF TECHNOLOGY.]

Subdivision 1. [PURPOSE.] The Minnesota office of technology is an agency in the executive branch managed by an executive director appointed by the governor in accordance with section 237A.02, subdivision 1. The office shall provide leadership and direction for information and communications technology policy in Minnesota. The office shall coordinate strategic investments in information and communications technology to encourage the development of a technically literate society and to ensure sufficient access to and efficient delivery of government information and services.

Subd. 2. [DISCRETIONARY POWERS.] The office may:

(1) enter into contracts for goods or services with public or private organizations and charge fees for services it provides;

(2) apply for, receive, and expend money from public agencies;

(3) apply for, accept, and disburse grants and other aids from the federal government and other public or private sources;

(4) enter into contracts with agencies of the federal government, local governmental units, the University of Minnesota and other educational institutions, and private persons and other nongovernmental organizations as necessary to perform its statutory duties;

(5) appoint committees and task forces of not more than two years' duration to assist the office in carrying out its duties;

(6) sponsor and conduct conferences and studies, collect and disseminate information, and issue reports relating to information and communications technology issues;

(8) review the technology infrastructure of regions of the state and cooperate with and make recommendations to the governor, legislature, state agencies, local governments, local technology development agencies, the federal government, private businesses, and individuals for the realization of information and communications technology infrastructure development potential;

(9) sponsor, support, and facilitate innovative and collaborative economic and community development and government services projects, including technology initiatives related to culture and the arts, with public and private organizations; and

(10) review and recommend alternative sourcing strategies for state information and communications systems.

Subd. 3. [DUTIES.] The office shall:

(1) coordinate the efficient and effective use of available federal, state, local, and private resources to develop statewide information and communications technology and its infrastructure;

(2) review state agency and intergovernmental information and communications systems development efforts involving state or intergovernmental funding and recommend projects for inclusion in the information technology budget under section 16A.11;

(3) encourage cooperation and collaboration among state and local governments in developing intergovernmental communication and information systems, and define the structure and responsibilities of the information policy council;

(4) cooperate and collaborate with the legislative and judicial branches in the development of information and communications systems in those branches;

(5) continue the development of North Star, the state's official comprehensive on-line service and information initiative;

(6) promote and collaborate with the state's agencies in the state's transition to an effectively competitive telecommunications market;

(7) promote and coordinate education and lifelong learning initiatives to assist Minnesotans in developing technical literacy and obtaining access to ongoing learning resources;

(8) promote and coordinate public information access and network initiatives to connect Minnesota's citizens and communities to each other, to their governments, and to the world;

(9) promote and coordinate electronic commerce initiatives to ensure that Minnesota businesses and citizens can successfully compete in the global economy;

(10) promote and coordinate the regular and periodic reinvestment in the core information and communications technology infrastructure so that state and local government agencies can effectively and efficiently serve their customers;

(11) facilitate the cooperative development of standards for information systems, electronic data practices and privacy, and electronic commerce among international, national, state, and local public and private organizations; and

(12) work with others to avoid unnecessary duplication of existing services or activities provided by other public and private organizations while building on the existing governmental, educational, business, health care, and economic development infrastructures.

Sec. 8. [237A.02] [OFFICE OF TECHNOLOGY STRUCTURE AND PERSONNEL.]

Subd. 2. [INTERGOVERNMENTAL PARTICIPATION.] The executive director or the director's designee shall serve as a member of the Minnesota education telecommunications council, the geographic information systems council, the library planning task force, or their respective successor organizations, and as a member of Minnesota Technology, Inc., the Minnesota health data institute, and the Minnesota world trade center corporation.

Sec. 9. [237A.03] [NORTH STAR INFORMATION ACCESS ACCOUNT.]

The North Star information access account is in the special revenue fund. Money in the account is appropriated to the office of technology to be used to continue the development of the North Star project as provided in this chapter. The account consists of:

(1) grants received from nonstate entities;

(2) fees and charges collected by the office;

(3) gifts, donations, and bequests made to the office; and

(4) other funds credited to the account by law.

Sec. 10. [237A.04] [ADMINISTRATION OF STATE INFORMATION AND COMMUNICATIONS SYSTEMS.]

Subdivision 1. [DEFINITIONS.] For the purposes of sections 237A.04 to 237A.06, the following terms have the meanings given them.

(a) "Information and communications technology activity" means the development or acquisition of information and communications technology devices and systems, but does not include MNET or other network service providers.

(b) "Data processing device or system" means equipment or computer programs, including computer hardware, firmware, software, and communication protocols, used in connection with the processing of information through electronic data processing means, and includes data communication devices used in connection with computer facilities for the transmission of data.

(c) "State agency" means an agency in the executive branch of state government and includes state colleges and universities and the Minnesota higher education services office.

Subd. 2. [EXECUTIVE DIRECTOR'S RESPONSIBILITY.] The executive director shall coordinate the state's information and communications technology systems to serve the needs of the state government. The executive director shall:

(1) coordinate the design of a master plan for information and communications technology systems in the state and its political subdivisions and shall report on the plan to the governor and legislature at the beginning of each regular session;

(2) coordinate all information and communications technology plans and contracts and oversee the state's information and communications systems;

(3) establish standards for information and communications systems; and

(4) maintain a library of systems and programs developed by the state and its political subdivisions for use by agencies of government.

Subd. 4. [EVALUATION AND APPROVAL REQUIREMENTS.] A state agency may not undertake an information and communications technology activity until the activity has been evaluated according to the procedures developed under subdivision 5, and the executive director has given written approval of the proposed activity. If a proposed activity is not approved, the executive director shall direct the commissioner of finance to cancel the unencumbered balance of any appropriation allotted for the activity. The executive director may delegate approval powers regarding information and communications technology activities to the head of another agency including the agency seeking approval if delegation is deemed appropriate.

Subd. 5. [EVALUATION PROCEDURE.] The executive director shall establish and, as necessary, update and modify procedures to evaluate information and communications activities proposed by state agencies. The evaluation procedure must assess the necessity, design and plan for development, ability to meet user requirements, feasibility, and flexibility of the proposed data processing device or system, its relationship to other state data processing devices or systems, and its costs and benefits when considered by itself and when compared with other options.

Subd. 6. [REPORT TO LEGISLATURE.] The executive director shall submit to the legislature, in the annual information technology budget required by section 16A.11, a concise narrative explanation of the activity and a request for any additional appropriation necessary to complete the activity.

Subd. 7. [SYSTEM DEVELOPMENT METHODS.] The executive director shall establish and, as necessary, update and modify methods for developing information and communications systems appropriate to the specific needs of individual state agencies. The development methods shall be used to define the design, programming, and implementation of systems. The development methods must also enable and require a data processing system to be defined in terms of its computer programs, input requirements, output formats, administrative procedures, and processing frequencies.

Subd. 8. [DATA SECURITY SYSTEMS.] In consultation with the attorney general and appropriate agency heads, the executive director shall develop data security policies, guidelines, and standards, and the commissioner of administration shall install and administer state data security systems on the state's centralized computer facility consistent with these policies, guidelines, standards, and state law to ensure the integrity of computer-based and other data and to ensure confidentiality of the data, consistent with the public's right to know as defined in chapter 13. Each department or agency head is responsible for the security of the department's or agency's data.

Subd. 9. [JOINT ACTIONS.] The executive director may join with the federal government, other states, local governments, and organizations representing those groups either jointly or severally in the development and implementation of systems analysis, information services, and computerization projects.

Subd. 10. [ELECTRONIC PERMITTING AND LICENSING.] The executive director, in consultation with affected parties, shall coordinate the development of a system through which state permits or licenses normally issued immediately upon payment of a fee may be issued through electronic access to the appropriate state agencies.

Sec. 11. [237A.05] [INFORMATION AND COMMUNICATIONS TECHNOLOGY POLICY.]

Subdivision 1. [DEVELOPMENT.] The office of technology shall coordinate with state agencies in the development and establishment of policies and standards for state agencies to follow in developing and purchasing information and communications systems and training appropriate persons in their use. The office shall develop, promote, and coordinate state technology, architecture, standards and guidelines, information needs analysis techniques, contracts for the purchase of equipment and services, and training of state agency personnel on these issues.

Subd. 2. [RESPONSIBILITIES.] (a) In addition to other activities prescribed by law, the office of technology shall carry out the duties set out in this subdivision.

(c) The office shall assist state agencies in the planning and management of information systems so that an individual information system reflects and supports the state agency's mission and the state's requirements and functions.

(d) The office shall review agency requests for legislative appropriations for the development or purchase of information systems equipment or software.

(e) The office shall review major purchases of information systems equipment to:

(1) ensure that the equipment follows the standards and guidelines of the state information architecture;

(2) ensure that the equipment is consistent with the information management principles adopted by the information policy council;

(3) evaluate whether the agency's proposed purchase reflects a cost-effective policy regarding volume purchasing; and

(4) ensure that the equipment is consistent with other systems in other state agencies so that data can be shared among agencies, unless the office determines that the agency purchasing the equipment has special needs justifying the inconsistency.

(f) The office shall review the operation of information systems by state agencies and provide advice and assistance to ensure that these systems are operated efficiently and continually meet the standards and guidelines established by the office. The standards and guidelines must emphasize uniformity that encourages information interchange, open systems environments, and portability of information whenever practicable and consistent with an agency's authority and chapter 13. The office, in consultation with the intergovernmental information systems advisory council and the legislative reference library, shall recommend specific standards and guidelines for each state agency within a time period fixed by the office in regard to the following:

(1) establishing methods and systems directed at reducing and ultimately eliminating redundant storage of data;

(2) establishing data retention schedules, disaster recovery plans and systems, security systems, and procedural safeguards concerning privacy of data; and

(3) establishing information sales systems that utilize licensing and royalty agreements to the greatest extent possible, together with procedures for agency denial of requests for licenses or royalty agreements by commercial users or resellers of the information. Section 3.751 does not apply to those licensing and royalty agreements, and the agreements must include provisions that section 3.751 does not apply and that the state is immune from liability under the agreement.

(g) The office shall conduct a comprehensive review at least every three years of the information systems investments that have been made by state agencies and higher education institutions. The review must include recommendations on any information systems applications that could be provided in a more cost-beneficial manner by an outside source. The office must report the results of its review to the legislature and the governor.

(h) The office shall report to the legislature by January 15 of each year on progress in implementing paragraph (f), clauses (1) to (3).

Sec. 12. [237A.06] [GOVERNMENT INFORMATION ACCESS.]

Subdivision 1. [DUTIES.] The office of technology, in consultation with the intergovernmental information systems advisory council, shall:

(1) coordinate statewide efforts by units of state and local government to plan for and develop a system for providing access to government information;

(3) advise units of state and local government on provision of government data to citizens and businesses; and

(4) explore ways and means to improve citizen and business access to public data, including implementation of technological improvements.

Subd. 2. [APPROVAL OF STATE AGENCY INITIATIVES.] A state agency shall coordinate with the office of technology when implementing a new initiative for providing electronic access to state government information.

Subd. 3. [CAPITAL INVESTMENT.] No state agency may propose or implement a capital investment plan for a state office building unless:

(1) the agency has developed a plan for increasing telecommuting by employees who would normally work in the building, or the agency has prepared a statement describing why such a plan is not practicable; and

(2) the plan or statement has been reviewed by the office.

Sec. 13. [INITIAL DUTIES.]

(a) Upon creation, the office of technology shall perform a series of preliminary duties designed to assess the current status of the state's investment in information technology and to establish a clear means of directing future information technology initiatives.

(b) By November 1, 1997, the office shall recommend to the governor and the legislature a clearly defined statutory funding structure that:

(1) efficiently uses available federal, state, and local funding sources to develop and maintain a statewide public information and communications infrastructure; and

(2) provides a means of tracking and compiling all state agency expenditures related to information technology.

This report also shall include a proposed format to be used by state agencies for information technology budget requests. The proposed format must be created in collaboration with the departments of administration and finance.

(c) By December 1, 1997, the office shall review and report to the governor and the legislature on the status of all currently established state agency and intergovernmental information and communications systems that use state funding. The report shall recommend a means of consolidating existing governmental information technology boards and councils, to achieve efficiency, prevent duplication of effort, and clarify lines of authority.

Sec. 14. [EMPLOYEES; TRANSITION.]

Persons employed by the office of technology on the day before the effective date of this section are in the unclassified service until June 30, 1998. On July 1, 1998, these employees, other than the executive director and the deputy and assistant directors, are transferred to the classified service.

Sec. 15. [TRANSFERS.]

In accordance with Minnesota Statutes, sections 15.039 and 43A.045, the budget and 12 positions for functions transferred from the information policy office, with incumbents, excluding the public information policy analysis division, are transferred to the Minnesota office of technology, effective July 1, 1997.

Sec. 16. [INSTRUCTION TO REVISOR.]

Sec. 17. [REPEALER.]

Minnesota Statutes 1996, sections 15.95; 15.96; 16B.40; 16B.41; and 16B.43, are repealed.

Section 1. [237B.01] [DEFINITIONS.]

Subdivision 1. [SCOPE.] The terms used in this chapter have the meanings given them in this section.

Subd. 2. [GOVERNMENT UNIT.] "Government unit" means a state department, agency, commission, council, board, task force, or committee; constitutional office; court entity; Minnesota state colleges and universities; county, statutory or home rule charter city, or town; school district; special district; and any other board, commission, district, or authority created pursuant to law, local ordinance, or charter provision.

Subd. 3. [IT.] "IT" means information and telecommunications technology.

Subd. 4. [IT COMMUNITY RESOURCE DEVELOPMENT INITIATIVE.] "IT community resource development initiative" means the programs developed under sections 237B.11 to 237B.14.

Subd. 5. [CENTER.] "Center" means the Minnesota Internet Center established under sections 237B.11 to 237B.14.

Subd. 6. [NORTH STAR.] "North Star" means the state's comprehensive government on-line service and information initiative. North Star is Minnesota's government framework for coordination and collaboration in providing on-line government services and information.

Subd. 7. [CORE SERVICES.] "Core services" means information system applications required to provide secure information services and on-line applications and content to the public from government units. On-line applications may include, but are not limited to:

(1) standardized public directory services and standardized content services;

(2) on-line search systems;

(3) general technical services to support government unit on-line services;

(4) electronic conferencing and communication services;

(5) secure electronic transaction services;

(6) digital audio, video, and multimedia services; and

(7) government intranet content and service development.

Subd. 8. [TELETERN.] "Teletern" means a student enrolled in a higher education program who has qualifications and duties described in section 237B.13.

Sec. 2. [237B.02] [NORTH STAR STAFF; OVERSIGHT BY OFFICE OF TECHNOLOGY.]

Sec. 3. [237B.03] [NORTH STAR PARTICIPATION, CONSULTATION, AND GUIDELINES.]

The North Star staff shall consult with governmental and nongovernmental organizations to establish rules for participation in the North Star initiative. Government units planning, developing, or providing publicly accessible on-line services shall provide access through and collaborate with North Star and formally register with the initiative. The University of Minnesota is requested to establish on-line connections and collaborate with North Star. Units of the legislature shall make their services available through North Star. Government units may be required to submit standardized directory and general content for core services, but are not required to purchase core services from North Star. North Star shall promote broad public access to the sources of on-line information or services through multiple technologies.

Sec. 4. [237B.04] [NORTH STAR SECURE TRANSACTIONS, FEES.]

Subdivision 1. [SECURE TRANSACTION SYSTEM.] North Star shall plan and develop a secure transaction system to support delivery of government services electronically.

Subd. 2. [FEES.] The executive director shall establish fees for technical and transaction services for government units through North Star. Fees must be deposited into the North Star information access account.

Sec. 5. [237B.05] [AGGREGATION OF SERVICE DEMAND.]

The North Star staff shall identify opportunities for aggregation of demand for technical services required by government units for on-line activities and may contract with governmental or nongovernmental entities for provision of services. These contracts are not subject to the requirements of chapter 16B, except sections 16B.167, 16B.17, and 16B.175.

Sec. 6. [237B.06] [NORTH STAR OUTREACH.]

North Star may promote the availability of government on-line services and information through public outreach and education. Public network expansion in communities through libraries, schools, colleges, local government, and other community access points shall include access to North Star. North Star may make materials available to those public sites to promote awareness of the service.

Sec. 7. [237B.07] [ADVANCED DEVELOPMENT COLLABORATION.]

The Minnesota office of technology shall identify information technology initiatives with broad public impact and advanced development requirements. Those initiatives shall assist in the development of and utilization of core services to the greatest extent possible where appropriate, cost effective, and technically feasible. This includes, but is not limited to, higher education, statewide on-line library, economic and community development, and K-12 educational technology initiatives. North Star shall participate in electronic commerce research and development initiatives with the University of Minnesota and other partners. The statewide on-line library initiative shall consult, collaborate, and work with North Star to ensure development of proposals for advanced government information locator and electronic depository and archive systems.

Sec. 8. [237B.11] [IT COMMUNITY RESOURCE DEVELOPMENT INITIATIVE.]

Subdivision 1. [CREATION AND PURPOSE.] The information and telecommunications technology (IT) community resource development initiative is created under the oversight jurisdiction of the Minnesota office of technology to build the capacity of citizens, businesses, communities, and regions of the state to fully realize the benefits of IT for sustainable community and economic development and to help facilitate the transition into the market-based, competitive IT environment.

Subd. 2. [DUTIES GENERALLY.] Through this initiative, the Minnesota office of technology shall:

(2) create the Minnesota Internet Center, centrally located within the state, to collaborate with North Star, public and private partners, and with existing or emerging technology and community development efforts;

(3) promote community-based telecommunications planning and development and the use of community-oriented electronic communications and information applications in health care, education, and commerce;

(4) award grants for community-based development seed funds to encourage public-private partnerships that foster effective IT use and IT integration activities in the community; and

(5) facilitate the aggregation of demand for IT on a comprehensive private, nonprofit, and public sector shared basis in communities.

Sec. 9. [237B.12] [IT COMMUNITY RESOURCE CENTER DUTIES; GENERALLY.]

The Minnesota Internet Center shall assist communities and regions in comprehensive IT community planning, demand aggregation, design, and implementation. It shall maintain an interactive database of community and business-related IT experience, showcase successful models of community and business IT integration, coordinate statewide IT community development technical assistance, and act as a clearinghouse for applications and education in the uses of IT.

Sec. 10. [237B.13] [TELETERNS AND COMMUNITY IT RESOURCE TEAMS.]

The center shall coordinate the training and placement of teleterns who have IT experience and community development process skills, regional IT community development coordinators, and community IT resource teams to work in partnership with communities as they plan for and implement comprehensive IT resource development efforts. This includes the aggregation of demand for IT to help facilitate the transition into a market-based, competitive IT environment and the use of IT tools to enhance access to community services, improve the business climate, and strengthen community ties.

Sec. 11. [237B.14] [COLLABORATION PARTNERS; ASSISTANCE AND FUNDING REQUIREMENTS.]

Subdivision 1. [COMMUNITY-BASED DEVELOPMENT PARTNERS.] The center and its community-based development functions shall coordinate or partner, when possible, with Minnesota learning community initiatives, particularly for community-based technology learning centers; Minnesota library technology investments; Trade Point Minnesota, the University of Minnesota Secure Electronic Authentication Link (SEAL) laboratory and electronic trading centers; the Small Business Administration business information center; Minnesota Technology centers; the Minnesota extension service Access Minnesota sites; and the state's telecommunications collaboration project, among others.

Subd. 2. [ASSISTANCE AND FUNDING; GENERAL PRINCIPLES.] Community technical assistance and development seed funding for aggregation of demand and community IT planning provided through the IT community resource development initiative must be contingent upon the following general principles:

(1) that communities and regions show evidence of, or intent to do, cooperative funding and planning between sectors including, but not limited to, private sector providers, public sector technology investments such as MNet, library systems, health care providers, businesses, schools and other educational institutions, and the nonprofit sector; and

(2) that communities and regions agree to form local and regional IT coordination committees or modify similar, existing committees to be more inclusive of other sectors and undertake comprehensive planning across those sectors to leverage public and private IT investment to the maximum benefit of all citizens.

Sec. 12. [EFFECTIVE DATE.]

Section 1. Minnesota Statutes 1996, section 3.855, subdivision 3, is amended to read:

Subd. 3. [OTHER SALARIES AND COMPENSATION PLANS.] The commission shall also:

(1) review and approve, reject, or modify a plan for compensation and terms and conditions of employment prepared and submitted by the commissioner of employee relations under section 43A.18, subdivision 2, covering all state employees who are not represented by an exclusive bargaining representative and whose compensation is not provided for by chapter 43A or other law;

(2) review and approve, reject, or modify a plan for total compensation and terms and conditions of employment for employees in positions identified as being managerial under section 43A.18, subdivision 3, whose salaries and benefits are not otherwise provided for in law or other plans established under chapter 43A;

(3) review and approve, reject, or modify recommendations for salaries submitted by the governor or other appointing authority under section 43A.18, subdivision 5, covering agency head positions listed in section 15A.081 15A.0815;

(4) review and approve, reject, or modify recommendations for salaries of officials of higher education systems under section 15A.081, subdivision 7b; and

(5) review and approve, reject, or modify plans for compensation, terms, and conditions of employment proposed under section 43A.18, subdivisions 3a and 4.

Sec. 2. Minnesota Statutes 1996, section 15A.081, subdivision 7b, is amended to read:

Subd. 7b. [HIGHER EDUCATION OFFICERS.] The board of trustees of the Minnesota state colleges and universities and the higher education services council shall set the salary rates for, respectively, the chancellor of the Minnesota state colleges and universities and the director of the higher education services office. The board or the council shall submit the proposed salary change to the legislative coordinating commission for approval, modification, or rejection in the manner provided in section 3.855. The salary rate for the chancellor of the Minnesota state colleges and universities may not exceed 95 percent of the salary of the governor under section 15A.082, subdivision 3. For purposes of this subdivision, "the salary rate of the chancellor" does not include:

(1) employee benefits that are also provided for the majority of all other full-time state employees, vacation and sick leave allowances, health and dental insurance, disability insurance, term life insurance, and pension benefits or like benefits the cost of which is borne by the employee or which is not subject to tax as income under the Internal Revenue Code of 1986;

(2) dues paid to organizations that are of a civic, professional, educational, or governmental nature;

(3) reimbursement for actual expenses incurred by the employee that the appointing authority determines to be directly related to the performance of job responsibilities, including any relocation expenses paid during the initial year of employment; or

(4) a housing allowance that is comparable to housing allowances provided to chancellors and university presidents in similar higher education systems nationwide.

Sec. 3. Minnesota Statutes 1996, section 15A.081, subdivision 8, is amended to read:

Subd. 8. [EXPENSE ALLOWANCE.] Notwithstanding any law to the contrary, positions listed in subdivision 1 section 15A.0815, subdivisions 3 and 4, constitutional officers, and the commissioner of iron range resources and rehabilitation are authorized an annual expense allowance not to exceed $1,500 for necessary expenses in the normal performance of their duties for which no other reimbursement is provided. The expenditures under this subdivision are subject to any laws and rules relating to budgeting, allotment and encumbrance, preaudit and postaudit. The commissioner of finance may promulgate adopt rules to assure the proper expenditure of these funds, and to provide for reimbursement.

Sec. 4. Minnesota Statutes 1996, section 15A.081, subdivision 9, is amended to read:

Subd. 9. [TRANSFER OF VACATION AND SICK LEAVE; CERTAIN APPOINTEES.] (a) This subdivision governs transfers of accumulated vacation leave and sick leave if the governor appoints the incumbent of a position listed in this section 15A.0815 to another position listed in this section 15A.0815.

(b) An appointee moving between positions in the executive branch shall transfer all vacation leave and sick leave hours to the appointee's credit at the time of the new appointment.

(c) The governor may authorize an appointee to transfer accumulated vacation leave and sick leave hours under the following conditions:

(1) an appointee moving to a position in the executive branch from a position outside the executive branch may be permitted to transfer no more than 275 hours of accumulated unliquidated vacation leave and no more than 900 hours of accumulated unliquidated sick leave; and

(2) an appointee moving to a position outside the executive branch from a position within the executive branch may be permitted to transfer accumulated unliquidated vacation leave and sick leave hours up to the maximum accumulations permitted by the personnel policies governing the new position.

The governor shall notify the commissioner of employee relations of any transfers authorized under this paragraph.

Sec. 5. [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.]

Subdivision 1. [SALARY LIMITS.] The governor or other appropriate appointing authority shall set the salary rates for positions listed in this section within the salary limits listed in subdivisions 2 to 5, subject to approval of the legislative coordinating commission and the legislature as provided by sections 3.855, 15A.081, subdivision 7b, and 43A.18, subdivision 5.

Subd. 2. [HIGHER EDUCATION SYSTEM LIMITS.] The salary rate of the chancellor of Minnesota state colleges and universities may not exceed 95 percent of the salary of the governor. For purposes of this subdivision, "the salary rate of the chancellor" does not include:

(1) employee benefits that are also provided for the majority of all other full-time state employees, vacation and sick leave allowances, health and dental insurance, disability insurance, term life insurance, and pension benefits;

(2) any benefits the cost of which is borne by the employee or which is not subject to tax as income under the Internal Revenue Code of 1986;

(3) dues paid to organizations that are of a civic, professional, educational, or governmental nature;

(4) reimbursement for actual expenses incurred by the employee that the appointing authority determines to be directly related to the performance of job responsibilities, including any relocation expenses paid during the initial year of employment; or

Subd. 3. [GROUP I SALARY LIMITS.] The salaries for positions in this subdivision may not exceed 85 percent of the salary of the governor:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of children, families, and learning;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of economic security;

Commissioner of employee relations;

Commissioner of finance;

Commissioner of health;

Executive director, higher education services office;

Commissioner, housing finance agency;

Commissioner of human rights;

Commissioner of human services;

Executive director, state board of investment;

Commissioner of labor and industry;

Executive director, Minnesota state high school league;

Commissioner of natural resources;

Director of office of strategic and long-range planning;

Commissioner, pollution control agency;

Commissioner of public safety;

Commissioner, department of public service;

Commissioner of revenue;

Commissioner of trade and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

Subd. 4. [GROUP II SALARY LIMITS.] The salaries for positions in this subdivision may not exceed 75 percent of the salary of the governor:

Executive director of gambling control board;

Commissioner, bureau of mediation services;

Ombudsman for mental health and retardation;

Executive director of pari-mutuel racing;

Executive director, public employees retirement association;

Commissioner, public utilities commission;

Executive director, state retirement system; and

Executive director, teachers retirement association.

Subd. 5. [GROUP III SALARY LIMITS.] The salary for a position in this subdivision may not exceed 25 percent of the salary of the governor:

Chair, metropolitan airports commission.

Sec. 6. Minnesota Statutes 1996, section 15A.083, subdivision 5, is amended to read:

Subd. 5. [TAX COURT.] Salaries The salary of judges a judge of the tax court are is the same as the base salary for a district judges as set under section 15A.082, subdivision 3 court judge. The salary of the chief tax court judge is the same as the salary for a chief district court judge.

Sec. 7. Minnesota Statutes 1996, section 15A.083, subdivision 6a, is amended to read:

Subd. 6a. [ADMINISTRATIVE LAW JUDGE; MAXIMUM SALARY SALARIES.] The salary of the chief administrative law judge is the same as the salary of a district court judge. The salaries of the assistant chief administrative law judge and administrative law judge supervisors are 95 percent of the salary of a district court judge. The maximum salary of an administrative law judge in the classified service employed by the office of administrative hearings is 90 percent of the salary of a district court judges as set under section 15A.082, subdivision 3 judge.

Sec. 8. Minnesota Statutes 1996, section 15A.083, subdivision 7, is amended to read:

Subd. 7. [WORKERS' COMPENSATION COURT OF APPEALS AND COMPENSATION JUDGES.] Salaries of judges of the workers' compensation court of appeals are the same as the salary for district court judges as set under section 15A.082, subdivision 3. The salary of the chief judge of the workers' compensation court of appeals is the same as the salary for a chief district court judge. Salaries of compensation judges are 75 90 percent of the salary of district court judges. The chief workers' compensation settlement judge at the department of labor and industry may be paid an annual salary that is up to five percent greater than the salary of workers' compensation settlement judges at the department of labor and industry.

Sec. 9. Minnesota Statutes 1996, section 43A.17, subdivision 1, is amended to read:

The salary, as established in section 15A.081 15A.0815, of the head of a state agency in the executive branch is the upper limit on the salaries of individual employees in the agency. The salary of the commissioner of labor and industry is the upper limit of salaries of employees in the bureau of mediation services. However, if an agency head is assigned a salary that is lower than the current salary of another agency employee, the employee retains the salary, but may not receive an increase in salary as long as the salary is above that of the agency head. The commissioner may grant exemptions from these upper limits as provided in subdivisions 3 and 4.

Sec. 10. Minnesota Statutes 1996, section 43A.17, subdivision 3, is amended to read:

Subd. 3. [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request of the appointing authority, and when the commissioner determines that changes in employment situations create difficulties in attracting or retaining employees, the commissioner may approve an unusual employment situation increase to advance an employee within the compensation plan. Such The action will must be consistent with applicable provisions of collective bargaining agreements or plans pursuant to adopted under section 43A.18. The commissioner shall review each proposal giving due consideration to salary rates paid to other employees in the same class and agency and may approve any request which in the commissioner's judgment is in the best interest of the state. If the commissioner determines that the position requires special expertise necessitating a higher salary to attract or retain qualified persons, the commissioner may grant an exemption not to exceed 120 percent of the base salary of the head of the agency or the maximum rate established for the position, whichever is less.

Sec. 11. Minnesota Statutes 1996, section 43A.18, subdivision 4, is amended to read:

Subd. 4. [PLANS NOT ESTABLISHED BUT APPROVED BY COMMISSIONER.] (a) Notwithstanding any other law to the contrary, terms and conditions of employment for employees listed in this subdivision must be set by appointing authorities within the limits of compensation plans that have been approved by the commissioner before becoming effective. Compensation plans established under paragraphs paragraph (c) and (d), must be reviewed and approved, modified, or rejected by the legislature and the legislative coordinating commission on employee relations under section 3.855, subdivision subdivisions 2 and 3, before becoming effective.

(b) Total compensation for employees who are not covered by a collective bargaining agreement in the offices of the governor, lieutenant governor, attorney general, secretary of state, state auditor, and state treasurer must be determined by the governor, lieutenant governor, attorney general, secretary of state, state auditor, and state treasurer, respectively.

(c) Total compensation for classified administrative law judges in the office of administrative hearings must be determined by the chief administrative law judge.

(d) Total compensation for unclassified positions not covered by a collective bargaining agreement in the higher education services office must be determined by the higher education services office.

Sec. 12. Minnesota Statutes 1996, section 43A.18, subdivision 5, is amended to read:

Subd. 5. [GOVERNOR APPOINTING AUTHORITIES TO RECOMMEND CERTAIN SALARIES.] (a) The governor shall, by July 1 of each odd-numbered year, or other appropriate appointing authority, may submit to the legislative coordinating commission on employee relations recommendations for salaries within the salary range limits for the positions listed in section 15A.081, subdivisions 1 and 7 15A.0815, subdivisions 3 to 5. The governor An appointing authority may also propose additions or deletions of positions from those listed.

(b) Before submitting the recommendations, the governor appointing authority shall consult with the commissioner of administration, the commissioner of finance, and the commissioner of employee relations concerning the recommendations.

(d) Before the governor's appointing authority's recommended salaries take effect, the recommendations must be reviewed and approved, rejected, or modified by the legislative coordinating commission on employee relations and the legislature under section 3.855, subdivision subdivisions 2 and 3. The governor may also at any time propose changes in the salary rate of any positions covered by this subdivision, which must be submitted and approved in the same manner as provided in this subdivision. If, when the legislature is not in session, the commission fails to reject or modify salary recommendations of the governor within 30 calendar days of their receipt, the recommendations are deemed to be approved.

(e) The governor appointing authority shall set the initial salary of a head of a new agency or a chair of a new metropolitan board or commission whose salary is not specifically prescribed by law after consultation with the commissioner, whose recommendation is advisory only. The amount of the new salary must be comparable to the salary of an agency head or commission chair having similar duties and responsibilities.

(f) The salary of a newly appointed head of an agency or chair of a metropolitan agency listed in section 15A.081, subdivision 1 or 7 15A.0815, subdivisions 2 to 5, may be increased or decreased by the governor appointing authority, from the salary previously set for that position within 30 days of the new appointment after consultation with the commissioner. If the governor appointing authority, increases a salary under this paragraph, the governor appointing authority shall submit the new salary to the legislative coordinating commission on employee relations and the full legislature for approval, modification, or rejection under section 3.855, subdivision subdivisions 2 and 3. If, when the legislature is not in session, the commission fails to reject or modify salary recommendations of the governor within 30 calendar days of their receipt, the recommendations are deemed to be approved.

Sec. 13. Minnesota Statutes 1996, section 85A.02, subdivision 5a, is amended to read:

Subd. 5a. [EMPLOYEES.] (a) The board shall appoint an administrator who shall serve as the executive secretary and principal administrative officer of the board and, subject to its approval, the administrator shall operate the Minnesota zoological garden and enforce all rules and policy decisions of the board. The administrator must be chosen solely on the basis of training, experience, and other qualifications appropriate to the field of zoo management and development. The board shall set the compensation for salary of the administrator within the limits established for the commissioner of agriculture in section 15A.081, subdivision 1. The salary of the administrator may not exceed 85 percent of the salary of the governor. The administrator shall perform duties assigned by the board and shall serve serves in the unclassified service at the pleasure of the board. The administrator, with the participation of the board, shall appoint a development director in the unclassified service or contract with a development consultant to establish mechanisms to foster community participation in and community support for the Minnesota zoological garden. The board may employ other necessary professional, technical, and clerical personnel. Employees of the zoological garden are eligible for salary supplement in the same manner as employees of other state agencies. The commissioner of finance shall determine the amount of salary supplement based on available funds.

(b) The board may contract with individuals to perform professional services and may contract for the purchases of necessary species exhibits, supplies, services, and equipment. The board may also contract for the construction and operation of entertainment facilities on the zoo grounds that are not directly connected to ordinary functions of the zoological garden. The zoo board shall may not enter into any a final agreement for construction of any an entertainment facility that is not directly connected to the ordinary functions of the zoo until after final construction plans have been submitted to the chairs of the senate finance and house appropriations committees for their recommendations.

The zoo may not contract for entertainment during the period of the Minnesota state fair that would directly compete with entertainment at the Minnesota state fair.

Sec. 14. Minnesota Statutes 1996, section 298.22, subdivision 1, is amended to read:

Subdivision 1. (1) The office of governor shall appoint the commissioner of iron range resources and rehabilitation is created. The commissioner shall be appointed by the governor under the provisions of section 15.06.

amounts appropriated by section 298.28. The compensation salary of the commissioner shall must be set by the legislative coordinating commission and may not exceed the maximum salary set for the commissioner of administration under section 15A.081, subdivision 1 166 percent of the average salary of a steelworker in the taconite relief area, as certified by the executive director of the United Steelworkers of America, district 11.

(3) When the commissioner shall determine determines that distress and unemployment exists or may exist in the future in any county by reason of the removal of natural resources or a possibly limited use thereof of natural resources in the future and the any resulting decrease in employment resulting therefrom, now or hereafter, the commissioner may use such whatever amounts of the appropriation made to the commissioner of revenue in section 298.28 as that are determined to be necessary and proper in the development of the remaining resources of said the county and in the vocational training and rehabilitation of its residents, except that the amount needed to cover cost overruns awarded to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in effect after July 1, 1985, is appropriated from the general fund. For the purposes of this section, "development of remaining resources" includes, but is not limited to, the promotion of tourism.

Sec. 15. Minnesota Statutes 1996, section 349A.02, subdivision 1, is amended to read:

Subdivision 1. [DIRECTOR.] A state lottery is established under the supervision and control of the director of the state lottery appointed by the governor with the advice and consent of the senate. The director must be qualified by experience and training in the operation of a lottery to supervise the lottery. The director serves in the unclassified service. The annual salary rate authorized for the director is equal to 80 85 percent of the salary rate prescribed for the governor as of the effective date of Laws 1993, chapter 146.

Sec. 16. [SALARIES OF CONSTITUTIONAL OFFICERS, LEGISLATORS, AND JUDGES.]

(a) The salaries of constitutional officers are increased by 2.5 percent effective July 1, 1997, and by 2.5 percent effective January 1, 1998.

(b) The salaries of legislators are increased by 5.0 percent effective January 4, 1999.

(c) The salaries of the judges of the supreme court, court of appeals, and district court are increased by 2.5 percent effective July 1, 1997, and by 2.5 percent effective January 1, 1998.

(d) Effective July 1, 1999, the salaries of judges of the supreme court, court of appeals, and district court are increased by the average of the general salary adjustments for state employees in fiscal year 1998 provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session.

(e) Effective January 1, 2000, the salaries of judges of the supreme court, court of appeals, and district court are increased by the average of the general salary adjustments for state employees in fiscal year 1999 provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session.

(f) The commissioner of employee relations shall calculate the average of the general salary adjustments provided by negotiated collective bargaining agreements or arbitration awards ratified by the legislature in the 1998 legislative session. Negotiated collective bargaining agreements or arbitration awards that do not include general salary adjustments may not be included in these calculations. The commissioner shall weight the general salary adjustments by the number of full-time equivalent employees covered by each agreement or arbitration award. The commissioner shall calculate the average general salary adjustment for each fiscal year covered by the agreements or arbitration awards. The results of these calculations must be expressed as percentages, rounded to the nearest one-tenth of one percent. The commissioner shall calculate the new salaries for the positions listed in paragraphs (d) and (e) using the applicable percentages from the calculations in this paragraph and report them to the speaker of the house, the president of the senate, the chief justice of the supreme court, and the governor.

Sec. 17. [PHASE-IN OF SALARY INCREASES.]

by Minnesota Statutes, section 15A.083, subdivision 6a. If an employee's current salary exceeds the salary provided by this subdivision, the employee retains that salary, but may not receive a salary increase until the salary provided by this section exceeds the employee's current salary.

(b) Notwithstanding Minnesota Statutes, section 15A.083, subdivision 6a, the salary of the assistant chief administrative law judge and the administrative law judge supervisor in the office of administrative hearings is 90 percent of the salary of a district court judge effective July 1, 1997. After June 30, 1998, the salary of the assistant chief administrative law judge and the administrative law judge supervisor is governed by Minnesota Statutes, section 15A.083, subdivision 6a. If an employee's current salary exceeds the salary provided by this subdivision, the employee retains the salary, but may not receive a salary increase until the salary provided by this section exceeds the employee's current salary.

(c) Notwithstanding Minnesota Statutes, section 15A.083, subdivision 7, the salary of compensation judges is 85 percent of the salary of a district court judge effective July 1, 1997. After June 30, 1998, the salary of compensation judges is governed by Minnesota Statutes, section 15A.083, subdivision 7.

Sec. 18. [REVISOR INSTRUCTION.]

The revisor of statutes shall substitute the reference "section 15A.0815" for each reference to sections 15A.081, subdivisions 1, 7, and 7b, wherever they occur in the next edition of Minnesota Statutes and Minnesota Rules.

Sec. 19. [REPEALER.]

Minnesota Statutes 1996, sections 15A.081, subdivisions 1 and 7, are repealed."

Delete the title and insert:

"A bill for an act relating to the organization and operation of state government; appropriating money for the general legislative and administrative expenses of state government; modifying provisions relating to state government operations; providing for community-based planning; providing for planning pilot projects; modifying provisions relating to the municipal board; establishing dispute resolution procedures; modifying provisions relating to prescription drugs; establishing the Minnesota office of technology; providing for the North Star on-line service; modifying public employee and official compensation provisions; providing criminal penalties; appropriating money; amending Minnesota Statutes 1996, sections 3.056; 3.225, subdivision 1; 3.85, subdivision 3; 3.855, subdivision 3; 8.31, subdivision 1; 10A.071, subdivision 3; 10A.09, subdivision 6; 10A.20, subdivision 2; 15.0597, subdivisions 5 and 7; 15.0599, subdivision 4; 15.50, by adding subdivisions; 15.91, subdivision 2; 15A.081, subdivisions 7b, 8, and 9; 15A.083, subdivisions 5, 6a, and 7; 16A.10, subdivision 2; 16A.11, subdivisions 1 and 3c; 16A.1285, subdivision 3; 16A.129, subdivision 3; 16A.15, subdivision 3; 16A.642, subdivision 1; 16B.05, subdivision 2; 16B.167; 16B.24, subdivision 5; 16B.35, by adding a subdivision; 16B.42, subdivision 1; 16B.46; 16B.465, subdivisions 1, 3, 4, and 6; 16B.467; 16B.70, subdivision 2; 43A.17, subdivisions 1, 3, and 4; 43A.18, subdivisions 4 and 5; 43A.38, subdivision 4; 85A.02, subdivision 5a; 115.49, by adding a subdivision; 116P.05, subdivision 1; 138.31, by adding a subdivision; 138.35; 151.21, subdivisions 2, 3, and by adding a subdivision; 176.611, by adding a subdivision; 177.24, subdivision 1; 179A.03, subdivision 15; 179A.10, subdivision 1; 298.22, subdivision 1; 327.33, subdivision 2; 327B.04, subdivision 7; 349.163, subdivision 4; 349A.02, subdivision 1; 394.24, subdivision 1; 403.08, by adding a subdivision; 403.11, subdivision 2; 403.113, subdivisions 1, 2, 3, and 4; 403.13; 414.0325, subdivision 1; 414.033, subdivisions 2b, 11, and 12; 422A.101, subdivision 3; 462.357, subdivision 2; 465.87, by adding a subdivision; and 473.894, subdivision 3; Laws 1994 chapter 643, section 3, subdivision 2; and Laws 1996, chapter 463, section 13, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 4A; 10A; 11A; 15A; 16A; 16B; 43A; 62J; 197; 240A; 394; 403; 414; 462; and 473; proposing coding for new law as Minnesota Statutes, chapters 237A; 237B; and 572A; repealing Minnesota Statutes 1996, sections 15.95; 15.96; 15A.081, subdivisions 1 and 7; 16A.102; 16B.40; 16B.41; 16B.43; 16B.58, subdivision 8; 116C.80; 138.35, subdivision 3; and 414.033, subdivision 2a."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

H. F. No. 2150 was read for the second time.

S. F. Nos. 244, 432, 566, 683, 813, 951, 1037, 1114, 1669 and 1722 were read for the second time.

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 763, A bill for an act relating to historic places; designating Zion Lutheran Church and cemetery as a historic place; amending Minnesota Statutes 1996, section 138.664, by adding a subdivision.

Patrick E. Flahaven, Secretary of the Senate

Tunheim moved that the House concur in the Senate amendments to H. F. No. 763 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 763, A bill for an act relating to historic places; designating Zion Lutheran Church and cemetery as a historic place; amending Minnesota Statutes 1996, section 138.664, by adding a subdivision.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 127 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kalis	McElroy	Pugh	Tingelstad
Anderson, B.	Finseth	Kelso	McGuire	Rest	Tomassoni
Anderson, I.	Folliard	Kielkucki	Milbert	Reuter	Tompkins
Bakk	Garcia	Knight	Molnau	Rhodes	Trimble
Bettermann	Goodno	Knoblach	Mulder	Rifenberg	Tunheim
Biernat	Greenfield	Koppendrayer	Mullery	Rostberg	Van Dellen
Boudreau	Greiling	Koskinen	Munger	Rukavina	Vickerman
Bradley	Gunther	Kraus	Murphy	Schumacher	Wagenius
Broecker	Haas	Krinkie	Nornes	Seagren	Weaver
Carlson	Harder	Kubly	Olson, E.	Seifert	Wejcman
Journal of the House - 42nd Day - Top of Page 2391
Chaudhary	Hasskamp	Kuisle	Olson, M.	Sekhon	Wenzel
Clark	Hausman	Larsen	Opatz	Skare	Westfall
Commers	Hilty	Leppik	Orfield	Skoglund	Westrom
Daggett	Holsten	Lieder	Osskopp	Slawik	Winter
Davids	Huntley	Lindner	Osthoff	Smith	Wolf
Dawkins	Jaros	Long	Otremba	Solberg	Workman
Dehler	Jefferson	Luther	Ozment	Stanek	Spk. Carruthers
Delmont	Jennings	Macklin	Paulsen	Stang
Dempsey	Johnson, A.	Mahon	Pawlenty	Sviggum
Dorn	Johnson, R.	Mares	Paymar	Swenson, D.
Entenza	Juhnke	Marko	Pelowski	Swenson, H.
Erhardt	Kahn	McCollum	Peterson	Sykora

The bill was repassed, as amended by the Senate, and its title agreed to.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 1861, A bill for an act relating to agriculture; limiting entry into facilities in which confined farm animals are kept; proposing coding for new law in Minnesota Statutes, chapter 17.

Patrick E. Flahaven, Secretary of the Senate

Juhnke moved that the House concur in the Senate amendments to H. F. No. 1861 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 1861, A bill for an act relating to agriculture; limiting entry into facilities in which confined farm animals are kept; proposing coding for new law in Minnesota Statutes, chapter 17.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 127 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Finseth	Kelso	McGuire	Pugh	Tingelstad
Anderson, B.	Folliard	Kielkucki	Milbert	Rest	Tomassoni
Anderson, I.	Garcia	Knight	Molnau	Reuter	Tompkins
Bettermann	Goodno	Knoblach	Mulder	Rhodes	Trimble
Biernat	Greenfield	Koppendrayer	Mullery	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Munger	Rostberg	Van Dellen
Journal of the House - 42nd Day - Top of Page 2392
Bradley	Gunther	Kraus	Murphy	Rukavina	Vickerman
Broecker	Haas	Krinkie	Ness	Schumacher	Wagenius
Carlson	Harder	Kubly	Nornes	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Olson, E.	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, M.	Sekhon	Wenzel
Commers	Hilty	Leppik	Opatz	Skare	Westfall
Daggett	Holsten	Lieder	Orfield	Skoglund	Westrom
Davids	Huntley	Lindner	Osskopp	Slawik	Winter
Dawkins	Jaros	Long	Osthoff	Smith	Wolf
Dehler	Jefferson	Luther	Otremba	Solberg	Workman
Delmont	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers
Dempsey	Johnson, A.	Mahon	Paulsen	Stang
Dorn	Johnson, R.	Mares	Pawlenty	Sviggum
Entenza	Juhnke	Marko	Paymar	Swenson, D.
Erhardt	Kahn	McCollum	Pelowski	Swenson, H.
Evans	Kalis	McElroy	Peterson	Sykora

The bill was repassed, as amended by the Senate, and its title agreed to.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 356, A bill for an act relating to local governmental bodies; authorizing consideration of cost as a criterion in the designation of newspapers for official publication; amending Minnesota Statutes 1996, section 331A.04, subdivision 1, and by adding a subdivision.

Patrick E. Flahaven, Secretary of the Senate

Greiling moved that the House concur in the Senate amendments to H. F. No. 356 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 356, A bill for an act relating to legal newspapers; providing for the effect of certain errors in publication; authorizing the city of Roseville and independent school district No. 623 to consider cost as a criterion in the designation of newspapers for official publication; amending Minnesota Statutes 1996, section 331A.05, by adding a subdivision.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 126 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mares	Pawlenty	Sviggum
Anderson, B.	Evans	Kahn	Marko	Paymar	Swenson, D.
Anderson, I.	Finseth	Kalis	McElroy	Pelowski	Swenson, H.
Bakk	Folliard	Kelso	McGuire	Peterson	Sykora
Bettermann	Garcia	Kielkucki	Milbert	Pugh	Tingelstad
Biernat	Goodno	Knight	Molnau	Reuter	Tomassoni
Journal of the House - 42nd Day - Top of Page 2393
Boudreau	Greenfield	Knoblach	Mulder	Rhodes	Tompkins
Bradley	Greiling	Koppendrayer	Mullery	Rifenberg	Trimble
Broecker	Gunther	Koskinen	Munger	Rostberg	Tunheim
Carlson	Haas	Kraus	Murphy	Rukavina	Van Dellen
Chaudhary	Harder	Krinkie	Ness	Schumacher	Vickerman
Clark	Hasskamp	Kubly	Nornes	Seagren	Wagenius
Commers	Hausman	Kuisle	Olson, E.	Seifert	Weaver
Daggett	Hilty	Larsen	Olson, M.	Sekhon	Wejcman
Davids	Holsten	Leppik	Opatz	Skare	Wenzel
Dawkins	Huntley	Lieder	Orfield	Skoglund	Westfall
Dehler	Jaros	Lindner	Osskopp	Slawik	Westrom
Delmont	Jefferson	Long	Osthoff	Smith	Winter
Dempsey	Jennings	Luther	Otremba	Solberg	Wolf
Dorn	Johnson, A.	Macklin	Ozment	Stanek	Workman
Entenza	Johnson, R.	Mahon	Paulsen	Stang	Spk. Carruthers

Those who voted in the negative were:

	McCollumRest

The bill was repassed, as amended by the Senate, and its title agreed to.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 156, A bill for an act relating to state government; secretary of state; regulating filing fees and procedures; amending Minnesota Statutes 1996, sections 5.12; 5.23; 5.25, subdivision 1; 5A.03; 5A.04; 302A.821, subdivision 5; 303.14, subdivision 1; 308A.005, by adding a subdivision; 317A.821, subdivision 3; 317A.827, subdivision 1; 322A.03; 331A.02, subdivision 1; 336.9-403; 336.9-404; 336A.04, subdivision 4; and 514.08, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 5; repealing Minnesota Rules, part 3650.0030, subpart 8.

Patrick E. Flahaven, Secretary of the Senate

Slawik moved that the House refuse to concur in the Senate amendments to H. F. No. 156, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:

S. F. No. 1908.

Patrick E. Flahaven, Secretary of the Senate

subdivisions 1, 2, and 4a; 144A.073, subdivision 2; 145.925, subdivision 9; 153A.17; 157.15, by adding subdivisions; 157.16, subdivision 3; 245.03, subdivision 2; 245.4882, subdivision 5; 245.493, subdivision 1, and by adding a subdivision; 245.652, subdivisions 1 and 2; 245.98, by adding a subdivision; 246.02, subdivision 2; 252.025, subdivisions 1, 4, and by adding a subdivision; 252.28, by adding a subdivision; 252.32, subdivisions 1a, 3, 3a, 3c, and 5; 254.04; 254B.02, subdivisions 1 and 3; 254B.04, subdivision 1; 254B.09, subdivisions 4, 5, and 7; 256.01, subdivision 2, and by adding a subdivision; 256.025, subdivisions 2 and 4; 256.045, subdivisions 3, 3b, 4, 5, 7, 8, and 10; 256.476, subdivisions 2, 3, 4, and 5; 256.82, subdivision 1, and by adding a subdivision; 256.871, subdivision 6; 256.935; 256.969, subdivision 1; 256.9695, subdivision 1; 256B.037, subdivision 1a; 256B.04, by adding a subdivision; 256B.056, subdivisions 4, 5, and 8; 256B.0625, subdivisions 13 and 15; 256B.0626; 256B.0627, subdivision 5, and by adding a subdivision; 256B.064, subdivisions 1a, 1c, and 2; 256B.0911, subdivisions 2 and 7; 256B.0912, by adding a subdivision; 256B.0913, subdivisions 10, 14, 15, and by adding a subdivision; 256B.0915, subdivision 3, and by adding a subdivision; 256B.19, subdivisions 1, 2a, and 2b; 256B.421, subdivision 1; 256B.431, subdivision 25, and by adding a subdivision; 256B.433, by adding a subdivision; 256B.434, subdivisions 2, 3, 4, 9, and 10; 256B.48, subdivision 6; 256B.49, subdivision 1, and by adding a subdivision; 256B.69, subdivisions 2, 3a, 5, 5b, and by adding subdivisions; 256D.03, subdivisions 2, 2a, 3b, and 6; 256D.36; 256F.11, subdivision 2; 256G.02, subdivision 6; 256G.05, subdivision 2; 256I.05, subdivision 1a, and by adding a subdivision; 256J.50, by adding a subdivision; 326.37, subdivision 1; 393.07, subdivision 2; 466.01, subdivision 1; 469.155, subdivision 4; 471.59, subdivision 11; 626.556, subdivisions 10b, 10d, 10e, 10f, 11c, and by adding a subdivision; 626.558, subdivisions 1 and 2; and 626.559, subdivision 5; Laws 1995, chapter 207, articles 6, section 115; and 8, section 41, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 144; 145A; 157; 252; 256B; and 257; repealing Minnesota Statutes 1996, sections 145.9256; 256.026; 256.82, subdivision 1; 256B.041, subdivision 5; 256B.0625, subdivision 13b; 256B.19, subdivision 1a; and 469.154, subdivision 6; Minnesota Rules, part 9505.1000.

The bill was read for the first time and referred to the Committee on Health and Human Services.

H. F. No. 664, A bill for an act relating to state government; adding authority for the board of water and soil resources to accept and administer federal grants, donations, gifts, and other contributions to achieve authorized objectives of the agency; amending Minnesota Statutes 1996, sections 103B.101, subdivision 9; and 103C.401, subdivision 1.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kahn	McCollum	Pelowski	Swenson, H.
Anderson, B.	Evans	Kalis	McElroy	Peterson	Sykora
Anderson, I.	Finseth	Kelso	McGuire	Pugh	Tingelstad
Bakk	Folliard	Kielkucki	Milbert	Rest	Tomassoni
Bettermann	Garcia	Knight	Molnau	Reuter	Tompkins
Biernat	Goodno	Knoblach	Mulder	Rhodes	Trimble
Bishop	Greenfield	Koppendrayer	Mullery	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Munger	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Murphy	Rukavina	Vickerman
Broecker	Haas	Krinkie	Ness	Schumacher	Wagenius
Carlson	Harder	Kubly	Nornes	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Olson, E.	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, M.	Sekhon	Wenzel
Commers	Hilty	Leppik	Opatz	Skare	Westfall
Daggett	Holsten	Lieder	Orfield	Skoglund	Westrom
Davids	Huntley	Lindner	Osskopp	Slawik	Winter
Dawkins	Jaros	Long	Osthoff	Smith	Wolf
Dehler	Jefferson	Luther	Otremba	Solberg	Workman
Delmont	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers
Dempsey	Johnson, A.	Mahon	Paulsen	Stang
Journal of the House - 42nd Day - Top of Page 2395
Dorn	Johnson, R.	Mares	Pawlenty	Sviggum
Entenza	Juhnke	Marko	Paymar	Swenson, D.

The bill was passed and its title agreed to.

Pursuant to rule 1.10, Solberg requested immediate consideration of S. F. No. 495.

S. F. No. 495 was reported to the House.

Pugh moved to amend S. F. No. 495 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 62A.45, is amended to read:

62A.45 [COVERAGE FOR EQUIPMENT AND SUPPLIES FOR DIABETES.]

A health plan, including a plan providing the coverage specified in section 62A.011, subdivision 3, clause (10), must provide coverage for: (1) all physician prescribed medically appropriate and necessary equipment and supplies used in the management and treatment of diabetes; and (2) diabetes outpatient self-management training and education, including medical nutrition therapy, that is provided by a certified, registered, or licensed health care professional working in a program consistent with the national standards of diabetes self-management education as established by the American Diabetes Association. Coverage must include persons with gestational, type I or type II diabetes. Coverage required under this section is subject to the same deductible or coinsurance provisions applicable to the plan's hospital, medical expense, medical equipment, or prescription drug benefits. A health carrier may not reduce or eliminate coverage due to this requirement.

Sec. 2. [EFFECTIVE DATE; APPLICATION.]

Section 1 is effective August 1, 1997, and applies to all health plans issued or renewed to provide coverage for Minnesota residents on or after that date."

The motion prevailed and the amendment was adopted.

Mulder moved to amend S. F. No. 495, as amended, as follows:

Page 1, after line 6, insert:

"Section. 1. [62A.311] [ASSESSMENT OF PROPOSED HEALTH COVERAGE MANDATES.]

Subdivision 1. [DEFINITIONS.] For purposes of this section, the following terms have the meanings given:

(1) "mandated health benefit proposal" means a proposal that would statutorily require a health plan to do the following:

(ii) provide coverage or increase the amount of coverage of a particular type of health care treatment or service or of equipment, supplies, or drugs used in connection with a health care treatment or service; or

(iii) provide coverage or increase the amount of coverage that must be delivered by a specific type of provider; and

(2) "health plan" means a health plan as defined in section 62A.011, subdivision 3, but includes coverage listed in clauses (7) and (10) of that definition.

Subd. 2. [HEALTH COVERAGE MANDATE ASSESSMENT PROCESS.] The commissioners of health and commerce, in consultation with the commissioners of human services and employee relations, shall establish and administer a process for the review, assessment, and analysis of mandated health benefit proposals. The purpose of the assessment is to provide the legislature with a complete and timely analysis of all ramifications of any mandated health benefit proposal. The assessment must include, in addition to any other relevant information, the following:

(1) scientific and medical information on the proposed health benefit, on the potential for harm or benefit to the patient, and on the comparative benefit or harm from alternative forms of treatment; and

(2) public health, economic, fiscal, and consumer information on the impact of the proposed mandate on persons receiving health services in Minnesota and on the health care system in general.

The commissioners of health and commerce shall summarize the nature and quality of available information in these areas, and, if possible, shall provide any preliminary information to the public as part of the public hearing process required in subdivision 5. The commissioners may conduct original research into these issues, or may certify existing research as sufficient to meet the informational needs of the legislature.

Subd. 3. [REQUESTS FOR ASSESSMENT.] Whenever a legislative measure containing a mandated health benefit proposal is introduced as a bill or offered as an amendment to a bill or is likely to be introduced or offered as an amendment, the chairs of the standing committees having jurisdiction over the proposal shall request that the commissioners of health and commerce complete an assessment of the proposal in order to facilitate any committee action by either house of the legislature. Any person or organization may also request that the commissioners complete an assessment. If multiple requests are received, the commissioners shall consult with the chairs of the standing legislative committees having jurisdiction over mandated health benefit proposals to prioritize the requests.

Subd. 4. [ASSESSMENT OF PROPOSED MANDATES; REPORT TO THE LEGISLATURE.] The commissioners of health and commerce shall conduct an assessment of each mandated health benefit proposal selected for assessment and submit a report to the legislature no later than 180 days after the request. The commissioners shall, in consultation with the chairs of the standing committees having jurisdiction over the proposal, develop a reporting date for each proposal to be assessed. If the commissioners of health and commerce determine that the assessment of a particular mandated health benefit proposal should be completed entirely or in part by one of the two commissioners, the commissioners may agree to have the appropriate commissioner complete the assessment and submit the report to the legislature. The commissioner responsible for completing an assessment may seek the assistance and advice of consultants, contractors, researchers, community leaders, or other persons or organizations with relevant expertise. The commissioner may certify existing research as sufficient to meet the informational needs of the legislature. Prior to completion of an assessment report, the commissioners must gather the information required under subdivision 2 and must complete the public hearings required in subdivision 5.

Subd. 5. [PUBLIC HEARINGS.] The commissioners of health and commerce shall solicit comments and recommendations on a mandated health benefit proposal from any interested persons and organizations and shall summarize the various comments and recommendations received in the commissioners' report to the legislature.

Subd. 6. [ADVICE AND RECOMMENDATIONS.] The commissioners of health and commerce may appoint an ad hoc advisory panel of providers, representatives of health-related licensing boards, representatives of consumer groups and health plan companies, community leaders, economists, actuaries, and other expert persons to assist the commissioners in completing a mandate review."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The question was taken on the Mulder amendment and the roll was called. There were 10 yeas and 118 nays as follows:

Those who voted in the affirmative were:

Bishop	Haas	Kraus	Kuisle	Mulder
Bradley	Knight	Krinkie	Lindner	Tompkins

Those who voted in the negative were:

Abrams	Erhardt	Juhnke	McGuire	Peterson	Swenson, D.
Anderson, B.	Evans	Kahn	Milbert	Pugh	Swenson, H.
Anderson, I.	Finseth	Kalis	Molnau	Rest	Sykora
Bakk	Folliard	Kelso	Mullery	Reuter	Tingelstad
Bettermann	Garcia	Kielkucki	Munger	Rhodes	Tomassoni
Biernat	Goodno	Knoblach	Murphy	Rifenberg	Trimble
Boudreau	Greenfield	Koppendrayer	Ness	Rostberg	Tunheim
Broecker	Greiling	Koskinen	Nornes	Rukavina	Van Dellen
Carlson	Gunther	Kubly	Olson, E.	Schumacher	Vickerman
Chaudhary	Harder	Larsen	Olson, M.	Seagren	Wagenius
Clark	Hasskamp	Leppik	Opatz	Seifert	Weaver
Commers	Hausman	Lieder	Orfield	Sekhon	Wejcman
Daggett	Hilty	Long	Osskopp	Skare	Wenzel
Davids	Holsten	Luther	Osthoff	Skoglund	Westfall
Dawkins	Huntley	Macklin	Otremba	Slawik	Westrom
Dehler	Jaros	Mahon	Ozment	Smith	Winter
Delmont	Jefferson	Mares	Paulsen	Solberg	Wolf
Dempsey	Jennings	Marko	Pawlenty	Stanek	Spk. Carruthers
Dorn	Johnson, A.	McCollum	Paymar	Stang
Entenza	Johnson, R.	McElroy	Pelowski	Sviggum

The motion did not prevail and the amendment was not adopted.

S. F. No. 495, A bill for an act relating to insurance; health; requiring coverage for diabetes outpatient self-management training and education; amending Minnesota Statutes 1996, section 62A.45.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 124 yeas and 5 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, R.	McCollum	Pelowski	Swenson, D.
Anderson, B.	Erhardt	Juhnke	McElroy	Peterson	Swenson, H.
Anderson, I.	Evans	Kahn	McGuire	Pugh	Sykora
Bakk	Finseth	Kalis	Milbert	Rest	Tingelstad
Bettermann	Folliard	Kelso	Molnau	Reuter	Tomassoni
Biernat	Garcia	Kielkucki	Mulder	Rhodes	Tompkins
Bishop	Goodno	Knoblach	Mullery	Rifenberg	Trimble
Boudreau	Greenfield	Koppendrayer	Munger	Rostberg	Tunheim
Bradley	Greiling	Koskinen	Murphy	Rukavina	Van Dellen
Journal of the House - 42nd Day - Top of Page 2398
Broecker	Gunther	Kraus	Ness	Schumacher	Vickerman
Carlson	Haas	Kubly	Nornes	Seagren	Wagenius
Chaudhary	Harder	Kuisle	Olson, E.	Seifert	Weaver
Clark	Hasskamp	Larsen	Opatz	Sekhon	Wejcman
Commers	Hausman	Leppik	Orfield	Skare	Wenzel
Daggett	Hilty	Lieder	Osskopp	Skoglund	Westfall
Davids	Holsten	Long	Osthoff	Slawik	Westrom
Dawkins	Huntley	Luther	Otremba	Smith	Winter
Dehler	Jaros	Macklin	Ozment	Solberg	Wolf
Delmont	Jefferson	Mahon	Paulsen	Stanek	Spk. Carruthers
Dempsey	Jennings	Mares	Pawlenty	Stang
Dorn	Johnson, A.	Marko	Paymar	Sviggum

Those who voted in the negative were:

Knight	Krinkie	Lindner	Olson, M.	Workman

The bill was passed, as amended, and its title agreed to.

Winter, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon today:

S. F. Nos. 432 and 1722: H. F. Nos. 966, 317 and 276; S. F. Nos. 1116 and 145; and H. F. Nos. 209 and 1409.

H. F. No. 966, A bill for an act relating to employment; modifying provisions governing payment of wages; including the state in the definition of employer for certain purposes; amending Minnesota Statutes 1996, sections 181.02; 181.03; 181.063; 181.10; 181.13; and 181.171, by adding a subdivision.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kahn	McCollum	Pelowski	Swenson, H.
Anderson, B.	Evans	Kalis	McElroy	Peterson	Sykora
Anderson, I.	Finseth	Kelso	McGuire	Pugh	Tingelstad
Bakk	Folliard	Kielkucki	Milbert	Rest	Tomassoni
Bettermann	Garcia	Knight	Molnau	Reuter	Tompkins
Biernat	Goodno	Knoblach	Mulder	Rhodes	Trimble
Bishop	Greenfield	Koppendrayer	Mullery	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Munger	Rostberg	Van Dellen
Journal of the House - 42nd Day - Top of Page 2399
Bradley	Gunther	Kraus	Murphy	Rukavina	Vickerman
Broecker	Haas	Krinkie	Ness	Schumacher	Wagenius
Carlson	Harder	Kubly	Nornes	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Olson, E.	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, M.	Sekhon	Wenzel
Commers	Hilty	Leppik	Opatz	Skare	Westfall
Daggett	Holsten	Lieder	Orfield	Skoglund	Westrom
Davids	Huntley	Lindner	Osskopp	Slawik	Winter
Dawkins	Jaros	Long	Osthoff	Smith	Wolf
Dehler	Jefferson	Luther	Otremba	Solberg	Workman
Delmont	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers
Dempsey	Johnson, A.	Mahon	Paulsen	Stang
Dorn	Johnson, R.	Mares	Pawlenty	Sviggum
Entenza	Juhnke	Marko	Paymar	Swenson, D.

The bill was passed and its title agreed to.

H. F. No. 317, A bill for an act relating to capital improvements; authorizing towns to exercise eminent domain and other powers for purposes of wastewater infrastructure; proposing coding for new law in Minnesota Statutes, chapter 444.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 128 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kahn	McCollum	Peterson	Sykora
Anderson, B.	Evans	Kalis	McElroy	Pugh	Tingelstad
Anderson, I.	Finseth	Kelso	McGuire	Rest	Tomassoni
Bakk	Folliard	Kielkucki	Milbert	Reuter	Tompkins
Bettermann	Garcia	Knight	Molnau	Rhodes	Trimble
Biernat	Goodno	Knoblach	Mulder	Rifenberg	Tunheim
Bishop	Greenfield	Koppendrayer	Mullery	Rostberg	Van Dellen
Boudreau	Greiling	Koskinen	Munger	Rukavina	Vickerman
Bradley	Gunther	Kraus	Murphy	Schumacher	Wagenius
Broecker	Haas	Krinkie	Ness	Seagren	Weaver
Carlson	Harder	Kubly	Nornes	Seifert	Wejcman
Chaudhary	Hasskamp	Kuisle	Olson, E.	Sekhon	Wenzel
Clark	Hausman	Larsen	Olson, M.	Skare	Westfall
Commers	Hilty	Leppik	Opatz	Skoglund	Westrom
Daggett	Holsten	Lieder	Orfield	Slawik	Winter
Davids	Huntley	Lindner	Osskopp	Smith	Wolf
Dawkins	Jaros	Long	Osthoff	Solberg	Workman
Dehler	Jefferson	Luther	Otremba	Stanek	Spk. Carruthers
Delmont	Jennings	Macklin	Paulsen	Stang
Dempsey	Johnson, A.	Mahon	Pawlenty	Sviggum
Dorn	Johnson, R.	Mares	Paymar	Swenson, D.
Entenza	Juhnke	Marko	Pelowski	Swenson, H.

The bill was passed and its title agreed to.

Westfall was excused for the remainder of today's session.

H. F. No. 276, A bill for an act relating to natural resources; requiring public waters work permits for boathouses; providing authority to issue public waters work permits for boathouses to the commissioner of natural resources; amending Minnesota Statutes 1996, section 103G.245, subdivision 4.

The question was taken on the passage of the bill and the roll was called. There were 97 yeas and 31 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Entenza	Jennings	Mares	Pelowski	Swenson, D.
Bettermann	Erhardt	Johnson, A.	Marko	Peterson	Swenson, H.
Biernat	Evans	Johnson, R.	McCollum	Pugh	Tomassoni
Bishop	Folliard	Juhnke	McGuire	Rest	Trimble
Bradley	Garcia	Kahn	Milbert	Rhodes	Vickerman
Broecker	Goodno	Kalis	Mullery	Rifenberg	Wagenius
Carlson	Greenfield	Kelso	Munger	Rostberg	Wejcman
Chaudhary	Greiling	Knoblach	Murphy	Rukavina	Wenzel
Clark	Gunther	Koskinen	Ness	Schumacher	Westrom
Commers	Haas	Kraus	Olson, E.	Seagren	Winter
Daggett	Harder	Kubly	Opatz	Sekhon	Wolf
Davids	Hasskamp	Larsen	Orfield	Skare	Spk. Carruthers
Dawkins	Hausman	Leppik	Osthoff	Skoglund
Dehler	Hilty	Lieder	Ozment	Slawik
Delmont	Huntley	Long	Paulsen	Solberg
Dempsey	Jaros	Luther	Pawlenty	Stanek
Dorn	Jefferson	Mahon	Paymar	Stang

Those who voted in the negative were:

Abrams	Kielkucki	Macklin	Osskopp	Sykora	Workman
Anderson, B.	Knight	McElroy	Otremba	Tingelstad
Bakk	Koppendrayer	Molnau	Reuter	Tompkins
Boudreau	Krinkie	Mulder	Seifert	Tunheim
Finseth	Kuisle	Nornes	Smith	Van Dellen
Holsten	Lindner	Olson, M.	Sviggum	Weaver

The bill was passed and its title agreed to.

S. F. No. 1116 was reported to the House.

Mullery moved that S. F. No. 1116 be temporarily laid over on Special Orders. The motion prevailed.

S. F. No. 145 was reported to the House.

There being no objection, S. F. No. 145 was temporarily laid over on Special Orders.

H. F. No. 209, A bill for an act relating to human services; changing provisions for placement of children; amending Minnesota Statutes 1996, sections 257.071, subdivisions 1a and 7; 257.072, subdivisions 1, 2, 3, 4, 7, and 9; 259.29; 259.57, subdivision 2; 259.77; 260.181, subdivision 3; and 260.191, subdivision 1a.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 127 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kalis	McElroy	Peterson	Sykora
Anderson, B.	Evans	Kelso	McGuire	Pugh	Tingelstad
Anderson, I.	Finseth	Kielkucki	Milbert	Rest	Tomassoni
Bakk	Folliard	Knight	Molnau	Reuter	Tompkins
Bettermann	Goodno	Knoblach	Mulder	Rhodes	Trimble
Biernat	Greenfield	Koppendrayer	Mullery	Rifenberg	Tunheim
Bishop	Greiling	Koskinen	Munger	Rostberg	Van Dellen
Boudreau	Gunther	Kraus	Murphy	Rukavina	Vickerman
Bradley	Haas	Krinkie	Ness	Schumacher	Wagenius
Broecker	Harder	Kubly	Nornes	Seagren	Weaver
Carlson	Hasskamp	Kuisle	Olson, E.	Seifert	Wejcman
Chaudhary	Hausman	Larsen	Olson, M.	Sekhon	Wenzel
Clark	Hilty	Leppik	Opatz	Skare	Westrom
Commers	Holsten	Lieder	Orfield	Skoglund	Winter
Daggett	Huntley	Lindner	Osskopp	Slawik	Wolf
Davids	Jaros	Long	Osthoff	Smith	Workman
Dawkins	Jefferson	Luther	Otremba	Solberg	Spk. Carruthers
Dehler	Jennings	Macklin	Ozment	Stanek
Journal of the House - 42nd Day - Top of Page 2401
Delmont	Johnson, A.	Mahon	Paulsen	Stang
Dempsey	Johnson, R.	Mares	Pawlenty	Sviggum
Dorn	Juhnke	Marko	Paymar	Swenson, D.
Entenza	Kahn	McCollum	Pelowski	Swenson, H.

The bill was passed and its title agreed to.

Solberg was excused for the remainder of today's session.

H. F. No. 1409 was reported to the House.

Kubly moved to amend H. F. No. 1409, the second engrossment, as follows:

Page 3, line 16, delete "chairs of"

Page 3, line 19, delete "are" and insert "have been" and delete "to the chairs"

Page 3, line 21, delete "chairs" and insert "the committees"

The motion prevailed and the amendment was adopted.

Sviggum offered an amendment to H. F. No. 1409, the second engrossment, as amended.

Hilty raised a point of order pursuant to rule 3.09 that the Sviggum amendment was not in order. The Speaker ruled the point of order well taken and the Sviggum amendment out of order.

H. F. No. 1409, A bill for an act relating to agriculture; legislative review of feedlot permit rules; amending Minnesota Statutes 1996, section 116.07, subdivision 7.

The question was taken on the passage of the bill and the roll was called. There were 90 yeas and 36 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Finseth	Johnson, R.	Marko	Otremba	Skoglund
Bakk	Folliard	Juhnke	McCollum	Ozment	Slawik
Biernat	Garcia	Kahn	McGuire	Pawlenty	Smith
Bishop	Goodno	Kalis	Milbert	Paymar	Stang
Carlson	Greenfield	Kelso	Molnau	Pelowski	Swenson, H.
Chaudhary	Greiling	Kielkucki	Mullery	Peterson	Tomassoni
Clark	Harder	Knoblach	Munger	Pugh	Trimble
Daggett	Hasskamp	Koskinen	Murphy	Rest	Tunheim
Dawkins	Hausman	Kubly	Ness	Rhodes	Vickerman
Dehler	Hilty	Leppik	Olson, E.	Rostberg	Wagenius
Delmont	Holsten	Lieder	Olson, M.	Rukavina	Wejcman
Dorn	Huntley	Long	Opatz	Schumacher	Wenzel
Entenza	Jaros	Luther	Orfield	Seifert	Westrom
Erhardt	Jennings	Macklin	Osskopp	Sekhon	Winter
Evans	Johnson, A.	Mahon	Osthoff	Skare	Spk. Carruthers

Those who voted in the negative were:

Abrams	Commers	Koppendrayer	Mares	Rifenberg	Tingelstad
Anderson, B.	Davids	Kraus	McElroy	Seagren	Tompkins
Bettermann	Dempsey	Krinkie	Mulder	Stanek	Van Dellen
Boudreau	Gunther	Kuisle	Nornes	Sviggum	Weaver
Bradley	Haas	Larsen	Paulsen	Swenson, D.	Wolf
Broecker	Knight	Lindner	Reuter	Sykora	Workman

The bill was passed, as amended, and its title agreed to.

S. F. No. 1116 which was temporarily laid over earlier today on Special Orders was again reported to the House.

Mullery moved to amend S. F. No. 1116 as follows:

Page 2, after line 10, insert:

"Sec. 3. Minnesota Statutes 1996, section 383B.77, subdivision 2, is amended to read:

Sec. 4. [EFFECTIVE DATE.]

Section 3 is effective the day after the chief clerical officer of Hennepin county complies with Minnesota Statutes, section 645.021, subdivision 3."

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 1116, A bill for an act relating to Hennepin county; allowing use of certain county facilities for commercial wireless service providers and allowing the lease of sites for public safety communication equipment; amending Minnesota Statutes 1996, section 383B.255, subdivision 1, and by adding a subdivision.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 125 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Johnson, R.	Marko	Pawlenty	Sviggum
Anderson, B.	Erhardt	Juhnke	McCollum	Paymar	Swenson, D.
Anderson, I.	Evans	Kahn	McElroy	Pelowski	Swenson, H.
Bakk	Finseth	Kalis	McGuire	Peterson	Sykora
Bettermann	Folliard	Kelso	Milbert	Pugh	Tingelstad
Biernat	Garcia	Kielkucki	Molnau	Rest	Tomassoni
Bishop	Goodno	Knoblach	Mulder	Reuter	Tompkins
Boudreau	Greenfield	Koppendrayer	Mullery	Rhodes	Trimble
Bradley	Greiling	Koskinen	Munger	Rifenberg	Tunheim
Broecker	Gunther	Kraus	Murphy	Rostberg	Van Dellen
Carlson	Haas	Kubly	Ness	Rukavina	Vickerman
Chaudhary	Harder	Kuisle	Nornes	Schumacher	Wagenius
Clark	Hasskamp	Larsen	Olson, E.	Seagren	Weaver
Commers	Hausman	Leppik	Olson, M.	Seifert	Wejcman
Daggett	Hilty	Lieder	Opatz	Sekhon	Wenzel
Davids	Holsten	Lindner	Orfield	Skare	Westrom
Dawkins	Huntley	Long	Osskopp	Skoglund	Winter
Dehler	Jaros	Luther	Osthoff	Slawik	Wolf
Delmont	Jefferson	Macklin	Otremba	Smith	Workman
Dempsey	Jennings	Mahon	Ozment	Stanek	Spk. Carruthers
Dorn	Johnson, A.	Mares	Paulsen	Stang

Those who voted in the negative were:

	KnightKrinkie

The bill was passed, as amended, and its title agreed to.

Winter, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon today:

H. F. No. 1692 was reported to the House.

Munger moved that H. F. No. 1692 be continued on Special Orders. The motion prevailed.

Jefferson was excused between the hours of 11:25 a.m. and 11:45 a.m.

S. F. No. 277 was reported to the House.

Tunheim moved to amend S. F. No. 277 as follows:

Delete everything after the enacting clause and insert:

Section 1. [340A.3021] [IMPORTATION RESTRICTIONS.]

Subdivision 1. [DELIVERY TO WHOLESALER ONLY.] (a) No person may consign, ship, or deliver alcoholic beverages to any place in Minnesota except to a licensed wholesaler's warehouse, if the alcoholic beverages:

(1) were manufactured outside Minnesota; and

(2) have not previously been unloaded into a licensed wholesaler's warehouse in Minnesota.

(b) No person may ship or consign into Minnesota any alcoholic beverages manufactured outside the state unless the alcoholic beverages are continuously in the possession of a motor carrier of property as defined in section 221.011, subdivision 47, or a common carrier as defined in section 218.011, subdivision 2, or are carried in a motor vehicle owned, leased, or rented by a wholesaler licensed under this chapter, between the time the alcoholic beverages are introduced into Minnesota and the time they are unloaded into a licensed wholesaler's warehouse.

Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply to:

(1) alcoholic beverages passing through Minnesota in interstate commerce, while in the custody and under the control of a motor carrier of property;

(2) alcoholic beverages imported into Minnesota by individuals for personal use in the amounts permitted under section 297C.09 or 340A.417; and

(3) a holder of a manufacturer's warehouse permit.

Subd. 3. [CONFORMITY WITH FEDERAL AND STATE REGULATIONS.] No manufacturer, importer, or wholesaler licensed under this chapter may introduce into Minnesota any bottle or other container containing alcoholic beverages unless the alcoholic beverages are packaged and labeled in conformity with all applicable federal and state labeling regulations.

Subd. 4. [SOLICITATIONS PROHIBITED.] No person may send or mail, or cause to be sent or mailed, any letter, postcard, circular, catalog, pamphlet, or similar publication for delivery into Minnesota that is intended to solicit an order for alcoholic beverages to be shipped to any location into Minnesota other than a licensed wholesaler's warehouse.

Sec. 2. [340A.3055] [MANUFACTURER'S WAREHOUSE PERMIT.]

Subdivision 1. [PERMIT REQUIRED.] No brewer, malt liquor manufacturer, or intoxicating liquor manufacturer may import alcoholic beverages to a central warehouse, central distribution center, or holding area in Minnesota that the brewer or manufacturer owns or leases unless the brewer or manufacturer has obtained from the commissioner a manufacturer's warehouse permit for the facility. A manufacturer's warehouse permit allows a brewer or manufacturer to import alcoholic beverages for storage at the facility for which the permit is issued. No person other than a licensed wholesaler or a motor carrier of property as defined in section 221.011, subdivision 47, acting on behalf of a brewer, malt liquor manufacturer, intoxicating liquor manufacturer, or licensed wholesaler, may accept delivery from or pick up alcoholic beverages from the facility. A licensed wholesaler may distribute alcoholic beverages only from the wholesaler's warehouse.

Subd. 2. [ELIGIBILITY.] A permit under this section may be issued only to a brewer, malt liquor manufacturer, or intoxicating liquor manufacturer (1) whose manufacturing facility or facilities are located outside Minnesota, and (2) who holds a valid importer's license under section 340A.302.

Subd. 3. [FEE.] The annual fee for a permit under this section is $1,000.

Subd. 4. [RESTRICTION ON SALE AND DELIVERIES.] A holder of a permit under this section may sell alcoholic beverages stored in a facility to which a permit has been issued under this section only to (1) a wholesaler licensed under this chapter, (2) a wholesaler licensed in another state, or (3) an agency of another state or a province of Canada that sells alcoholic beverages at wholesale or retail.

Subd. 5. [REPORTS.] A holder of a permit under this section must report monthly to the commissioner of revenue, in a form and at a time the commissioner prescribes, (1) all alcoholic beverages imported into Minnesota and delivered to the permit holder's facility, and (2) all sales of alcoholic beverages made from the facility.

Sec. 3. Minnesota Statutes 1996, section 340A.404, subdivision 4, is amended to read:

Subd. 4. [SPECIAL PROVISIONS; SPORTS, CONVENTIONS, OR CULTURAL FACILITIES; COMMUNITY FESTIVALS.] (a) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor license issued by the municipality or by an adjacent municipality to dispense intoxicating liquor at any convention, banquet, conference, meeting, or social affair conducted on the premises of a sports, convention, or cultural facility owned by the municipality or instrumentality thereof having independent policy making and appropriating authority and located within the municipality. The licensee must be engaged to dispense intoxicating liquor at an event held by a person or organization permitted to use the premises, and may dispense intoxicating liquor only to persons attending the event. The licensee may not dispense intoxicating liquor to any person attending or participating in an amateur athletic event held on the premises.

(b) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor license issued by the municipality to dispense intoxicating liquor off premises at a community festival held within the municipality. The authorization shall specify the area in which the intoxicating liquor must be dispensed and consumed, and shall not be issued unless the licensee demonstrates that it has liability insurance as prescribed by section 340A.409 to cover the event.

Sec. 4. Minnesota Statutes 1996, section 340A.404, is amended by adding a subdivision to read:

Subd. 13. [HOLDERS OF MULTIPLE ON-SALE LICENSES; UNIFORM LICENSING PERIODS.] Notwithstanding any local ordinance or other law, a local government unit may adjust the licensing period for any holder of multiple on-sale alcoholic beverage licenses in the state, upon request of the licensee. The local government unit may charge a fee for an adjustment of the licensing period.

Sec. 5. Minnesota Statutes 1996, section 340A.409, subdivision 1, is amended to read:

unit of government from requiring higher insurance or bond coverages, or a larger deposit of cash or securities. The minimum requirement for proof of financial responsibility may be given by filing:

(1) a certificate that there is in effect for the license period an insurance policy issued by an insurer required to be licensed under section 60A.07, subdivision 4, or by an insurer recognized as an eligible surplus lines carrier pursuant to section 60A.206 or pool providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence;

(2) a bond of a surety company with minimum coverages as provided in clause (1); or

(3) a certificate of the state treasurer that the licensee has deposited with the state treasurer $100,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $100,000.

This subdivision does not prohibit an insurer from providing the coverage required by this subdivision in combination with other insurance coverage.

An annual aggregate policy limit for dram shop insurance of not less than $300,000 per policy year may be included in the policy provisions.

A liability insurance policy required by this section must provide that it may not be canceled for:

(1) any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given 30 days' notice in writing to the issuing authority of intent to cancel the policy; and

(2) nonpayment of premium unless the canceling party has first given ten days' notice in writing to the issuing authority of intent to cancel the policy.

Sec. 6. Minnesota Statutes 1996, section 340A.417, is amended to read:

340A.417 [SHIPMENTS INTO MINNESOTA.]

(a) Notwithstanding section 297C.09 or any provision of this chapter, a winery licensed in a state which affords Minnesota wineries an equal reciprocal shipping privilege may ship, for personal use and not for resale, not more than two cases of wine, containing a maximum of nine liters per case, in any calendar year to any resident of Minnesota age 21 or over. Delivery of a shipment under this section may not be deemed a sale in this state.

(b) The shipping container of any wine sent into or out of Minnesota under this section must be clearly labeled to indicate that the package cannot be delivered to a person under the age of 21 years.

(c) No person may (1) advertise shipments authorized under this section, or (2) by advertisement or otherwise, solicit shipments authorized by this section, or (3) accept orders for shipments authorized by this section by use of the Internet. No shipper located outside Minnesota may advertise such interstate reciprocal wine shipments in Minnesota.

(d) It is not the intent of this section to impair the distribution of wine through distributors or importing distributors, but only to permit shipments of wine for personal use.

administrative law judge's report and subsequent exceptions and argument, the commissioner shall issue an order vacating the cease and desist order, modifying it, or making it permanent as the facts require. If no hearing is requested within 30 days of the service of the order, the order becomes final and remains in effect until modified or vacated by the commissioner. All hearings shall be conducted in accordance with the provisions of chapter 14. If the person to whom a cease and desist order is issued fails to appear at the hearing after being duly notified, the person shall be deemed in default, and the proceeding may be determined against the person upon consideration of the cease and desist order, the allegations of which may be deemed to be true.

(f) Any person who violates this section within two years of a violation for which a cease and desist order was issued under paragraph (e), is guilty of a misdemeanor.

(g) Any person who commits a third or subsequent violation of this section, including a violation for which a cease and desist order was issued under paragraph (c), within any subsequent two-year period is guilty of a gross misdemeanor.

Sec. 7. Minnesota Statutes 1996, section 340A.504, subdivision 3, is amended to read:

Subd. 3. [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) A restaurant, club, bowling center, or hotel with a seating capacity for at least 30 persons and which holds an on-sale intoxicating liquor license may sell intoxicating liquor for consumption on the premises in conjunction with the sale of food between the hours of 12:00 noon on Sundays and 1:00 a.m. on Mondays.

(b) The governing body of a municipality may after one public hearing by ordinance permit a restaurant, hotel, bowling center, or club to sell intoxicating liquor alcoholic beverages for consumption on the premises in conjunction with the sale of food between the hours of 10:00 a.m. on Sundays and 1:00 a.m. on Mondays, provided that the licensee is in conformance with the Minnesota clean air act.

(c) An establishment serving intoxicating liquor on Sundays must obtain a Sunday license. The license must be issued by the governing body of the municipality for a period of one year, and the fee for the license may not exceed $200.

(d) A city may issue a Sunday intoxicating liquor license only if authorized to do so by the voters of the city voting on the question at a general or special election. A county may issue a Sunday intoxicating liquor license in a town only if authorized to do so by the voters of the town as provided in paragraph (e). A county may issue a Sunday intoxicating liquor license in unorganized territory only if authorized to do so by the voters of the election precinct that contains the licensed premises, voting on the question at a general or special election.

(e) An election conducted in a town on the question of the issuance by the county of Sunday sales licenses to establishments located in the town must be held on the day of the annual election of town officers.

(f) Voter approval is not required for licenses issued by the metropolitan airports commission or common carrier licenses issued by the commissioner. Common carriers serving intoxicating liquor on Sunday must obtain a Sunday license from the commissioner at an annual fee of $50, plus $20 for each duplicate.

Sec. 8. Minnesota Statutes 1996, section 340A.504, subdivision 4, is amended to read:

Subd. 4. [INTOXICATING LIQUOR; OFF-SALE.] No sale of intoxicating liquor may be made by an off-sale licensee:

(1) on Sundays;

(2) before 8:00 a.m. on Monday through Saturday;

(4) after 8:00 p.m. on Monday through Thursday and after 10:00 p.m. on Friday and Saturday at an establishment located in a city of the first class or within a city located within 15 miles of a city of the first class in the same county, provided that an establishment may sell intoxicating liquor until 10:00 p.m. on December 31 and July 3, and on the day preceding Thanksgiving day, unless otherwise prohibited under clause (1) and an establishment may sell intoxicating liquor until 10:00 p.m. on Monday through Saturday if it is a municipal liquor store located in a city with a population of less than 5,000 people and the city is within 15 miles of a first class city that borders another state;

(5) on Thanksgiving Day;

(6) on Christmas Day, December 25; or

(7) after 8:00 p.m. on Christmas Eve, December 24.

Sec. 9. Laws 1969, chapter 783, section 1, subdivision 1, as amended by Laws 1971, chapter 498, section 1, as amended by Laws 1973, chapter 396, section 1, is amended to read:

Section 1. [ST. PAUL, CITY OF; CIVIC CENTER; LIQUOR LICENSE.]

Subdivision 1. In addition to the licenses now authorized by law, and notwithstanding any provision of law to the contrary contained in the charter or ordinances of such city, or statutes applicable to such city, the city of St. Paul is authorized to issue an "on sale" liquor license for the premises known and used as the St. Paul civic center. The license so authorized may be vested, with the prior approval of the civic center authority, in any person, firm or corporation who has contracted for the use of the civic center premises for an event or a caterer of such person, firm or corporation approved by the civic center authority. The license may be vested in such person, firm, corporation or caterer notwithstanding the fact that such person, firm, corporation or caterer may hold another "on sale" license in its own right, but such license vested by the authority shall expire upon termination of the contracted event. The fee for such license to the authority shall be fixed by the governing body of the city of St. Paul. Such liquor license shall be issued in accordance with the statutes applicable to the issuance of "on sale" liquor licenses in cities of the first class not inconsistent herewith and in accordance with the charter and ordinances of the city of St. Paul not inconsistent herewith and shall limit the sale of intoxicating liquor to patrons of the entire civic center complex who gather therein for any convention, banquet, conference, meeting, professional athletic or sporting event, theatrical event or social affair, but shall prohibit the sale of intoxicating liquor to the public or to any persons attending or participating in any amateur athletic event being held on the civic center premises other than an intercollegiate athletic event, and prohibit the sale of intoxicating liquor other than malt liquor to persons attending an intercollegiate athletic event at the civic center premises.

Sec. 10. Laws 1990, chapter 554, section 19, is amended to read:

Sec. 19. [CITY OF ST. PAUL; WINE AND BEER LICENSES.]

Subdivision 1. [LICENSE AUTHORIZED.] The city of St. Paul may issue on-sale nonintoxicating malt liquor licenses and, on-sale wine licenses, and on-sale intoxicating liquor licenses to the city's division of parks and recreation. The licenses authorize the sale or service of wine or, nonintoxicating malt liquor, or intoxicating liquor on property owned by the city and under the jurisdiction of the division by:

(1) employees of the city;

(2) persons holding a permit from the division to conduct an event and sell or serve wine or, nonintoxicating malt liquor, or intoxicating liquor to persons attending the event; or

(3) persons who have contracted with the city to sell or serve wine or, nonintoxicating malt liquor, or intoxicating liquor on such property.

Subd. 2. [PERMITS; CONTRACTS.] (a) Permits issued by the city under subdivision 1, clause (2), and contracts entered into by the city under subdivision 1, clause (3), must provide for:

(2) the premises or area in which sales or service of wine or, nonintoxicating malt liquor, or intoxicating liquor will be made;

(3) the persons to whom such sales or service will be made;

(4) the days and hours in which such sales or service will be made; and

(5) obtaining by the permit holder or contracted vendor of such liquor liability insurance or bond, or both, as the city considers necessary to protect the city's interest as the holder of the license.

(b) A permit may be issued or a contract entered into under this section with a person who does not hold a license issued under Minnesota Statutes, chapter 340A, for the retail sale of alcoholic beverages.

(c) The division may, without notice or hearing, refuse to issue a permit under subdivision 1, clause (2).

Subd. 3. [CITY COUNCIL APPROVAL.] The St. Paul city council must approve each:

(1) facility at which wine or, nonintoxicating malt liquor, or intoxicating liquor will be sold or served by city employees;

(2) permit issued under subdivision 1, clause (2); and

(3) contract entered into under subdivision 1, clause (3).

Subd. 4. [APPLICABILITY OF GENERAL LAW.] All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section apply to licenses issued under this section. Licenses authorized by this section are in addition to any other licenses authorized by law.

Sec. 11. [CITY OF MOORHEAD; LIQUOR LICENSES.]

The city of Moorhead may issue three on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized under this section.

Sec. 12. [CITY OF SPRING LAKE PARK; LIQUOR LICENSES.]

The city of Spring Lake Park may issue one on-sale intoxicating liquor license in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized under this section.

Sec. 13. [EFFECTIVE DATE.]

Sections 2, 4, 7, and 8 are effective the day following final enactment. Sections 9 and 10 are effective on approval by the St. Paul city council and compliance with Minnesota Statutes, section 645.021. Section 11 is effective on approval by the Moorhead city council and compliance with Minnesota Statutes, section 645.021. Section 12 is effective on approval by the Spring Lake Park city council and compliance with Minnesota Statutes, section 645.021.

Section 1. Minnesota Statutes 1996, section 16B.54, subdivision 2, is amended to read:

been paid for with funds dedicated by the constitution for a special purpose and which are assigned to the central motor pool. The amount of reimbursement for a motor vehicle is its average wholesale price as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

(b) [PURCHASE.] To the extent that funds are available for the purpose, the commissioner may purchase or otherwise acquire additional passenger motor vehicles and trucks necessary for the central motor pool. The title to all motor vehicles assigned to or purchased or acquired for the central motor pool is in the name of the department of administration.

(c) [TRANSFER AT AGENCY REQUEST.] On the request of an agency, the commissioner may transfer to the central motor pool any passenger motor vehicle or truck for the purpose of disposing of it. The department or agency transferring the vehicle or truck must be paid for it from the motor pool revolving account established by this section in an amount equal to two-thirds of the average wholesale price of the vehicle or truck as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

(d) [VEHICLES; MARKING.] The commissioner shall provide for the uniform marking of all motor vehicles. Motor vehicle colors must be selected from the regular color chart provided by the manufacturer each year. The commissioner may further provide for the use of motor vehicles without marking by:

(1) the governor;

(2) the lieutenant governor;

(3) the division of criminal apprehension, the division of liquor control, the division of alcohol and gambling enforcement, and arson investigators of the division of fire marshal in the department of public safety;

(4) the financial institutions division of the department of commerce;

(5) the division of disease prevention and control of the department of health;

(6) the state lottery;

(7) criminal investigators of the department of revenue;

(8) state-owned community service facilities in the department of human services;

(9) the investigative staff of the department of economic security; and

(10) the office of the attorney general.

Sec. 2. Minnesota Statutes 1996, section 43A.34, subdivision 4, is amended to read:

Subd. 4. [STATE PATROL, CONSERVATION AND CRIME BUREAU OFFICERS EXEMPTED.] Notwithstanding any provision to the contrary, (a) conservation officers and crime bureau officers who were first employed on or after July 1, 1973, and who are members of the state patrol retirement fund by reason of their employment, and members of the Minnesota state patrol division and alcohol and gambling enforcement divisions division of the department of public safety who are members of the state patrol retirement association by reason of their employment, shall not continue employment after attaining the age of 60 years, except for a fractional portion of one year that will enable the employee to complete the employee's next full year of allowable service as defined pursuant to section 352B.01, subdivision 3; and (b) conservation officers and crime bureau officers who were first employed and are members of the state patrol retirement fund by reason of their employment before July 1, 1973, shall not continue employment after attaining the age of 70 years.

Sec. 3. Minnesota Statutes 1996, section 299A.02, subdivision 1, is amended to read:

ownership or investment in pension or mutual funds, in the manufacture, transportation or sale of intoxicating liquor or any malt or vinous beverages, intoxicating, nonintoxicating, or commercial or industrial alcohol. The commissioner of public safety or the commissioner of revenue may remove an employee in the unclassified civil service for any intentional violation of any provision in Laws 1985, chapter 305, articles 2 to 11 of chapter 297C or 340A. Intentional violation of the preceding sections a provision of chapter 297C or 340A by a classified employee of one of the departments may be grounds for removal of that employee pursuant to section 43A.33.

Sec. 4. Minnesota Statutes 1996, section 299A.02, subdivision 2, is amended to read:

Subd. 2. [GENERAL POWERS.] The commissioner shall administer and enforce the provisions of Laws 1985, chapter 305, articles 2 to 11 chapters 297C and 340A through the director of alcohol and gambling enforcement, except for those provisions thereof for which administration and enforcement are reserved to the commissioner of revenue.

Sec. 5. Minnesota Statutes 1996, section 299A.02, subdivision 3, is amended to read:

Subd. 3. [REPORTS; RULES.] The commissioner shall have power to require periodic factual reports from all licensed importers, manufacturers, wholesalers and retailers of intoxicating liquors and to make all reasonable rules to effect the object of Laws 1985, chapter 305, articles 2 to 11 chapters 297C and 340A. The rules shall include provisions for assuring the purity of intoxicating liquors and the true statement of its contents and proper labeling thereof with regard to all forms of sale. No rule may require the use of new containers in aging whiskey. No rule may require cordials or liqueurs to contain in excess of 2-1/2 percent by weight of sugar or dextrose or both.

Sec. 6. Minnesota Statutes 1996, section 299L.01, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] (a) For the purposes of this chapter, the terms defined in this subdivision have the meanings given them.

(b) "Division" means the division of alcohol and gambling enforcement.

(c) "Commissioner" means the commissioner of public safety.

(d) "Director" means the director of alcohol and gambling enforcement.

(e) "Manufacturer" means a person who assembles from raw materials or subparts a gambling device for sale or use in Minnesota.

(f) "Distributor" means a person who sells, offers to sell, or otherwise provides a gambling device to a person in Minnesota.

(g) "Used gambling device" means a gambling device five or more years old from the date of manufacture.

(h) "Test" means the process of examining a gambling device to determine its characteristics or compliance with the established requirements of any jurisdiction.

(i) "Testing facility" means a person in Minnesota who is engaged in the testing of gambling devices for use in any jurisdiction.

Sec. 7. Minnesota Statutes 1996, section 299L.01, subdivision 2, is amended to read:

Sec. 8. Minnesota Statutes 1996, section 299L.02, subdivision 4, is amended to read:

Subd. 4. [OTHER GAMBLING.] The director of gambling enforcement shall cooperate with all state and local agencies in the detection and apprehension of unlawful gambling.

Sec. 9. Minnesota Statutes 1996, section 299L.02, subdivision 5, is amended to read:

Subd. 5. [BACKGROUND CHECKS.] In any background check required to be conducted by the division of gambling enforcement under this chapter, chapter 240, 349, 349A, or section 3.9221, the director may, or shall when required by law, require that fingerprints be taken and the director may forward the fingerprints to the Federal Bureau of Investigation for the conducting of a national criminal history check. The director may charge a fee for fingerprint recording and investigation under section 3.9221.

Sec. 10. Minnesota Statutes 1996, section 299L.03, subdivision 1, is amended to read:

Subdivision 1. [INSPECTIONS; ACCESS.] In conducting any inspection authorized under this chapter or chapter 240, 349, or 349A, the employees of the division of gambling enforcement employees have free and open access to all parts of the regulated business premises, and may conduct the inspection at any reasonable time without notice and without a search warrant. For purposes of this subdivision, "regulated business premises" means premises where:

(1) lawful gambling is conducted by an organization licensed under chapter 349 or by an organization exempt from licensing under section 349.166;

(2) gambling equipment is manufactured, sold, distributed, or serviced by a manufacturer or distributor licensed under chapter 349;

(3) records required to be maintained under chapter 240, 297E, 349, or 349A are prepared or retained;

(4) lottery tickets are sold by a lottery retailer under chapter 340A;

(5) races are conducted by a person licensed under chapter 240; or

(6) gambling devices are manufactured, distributed, or tested, including places of storage under section 299L.07.

Sec. 11. Minnesota Statutes 1996, section 299L.03, subdivision 5, is amended to read:

Subd. 5. [ARREST POWERS.] The director may designate certain division employees within the division of gambling enforcement who are authorized to arrest or investigate any person who is suspected of violating any provision of chapter 240, 349, or 349A, or is suspected of committing any crime involving gambling, and to conduct searches and seizures to enforce any of those laws. Any employee authorized by this subdivision to make an arrest must be licensed under sections 626.84 to 626.863.

Sec. 12. Minnesota Statutes 1996, section 299L.03, subdivision 7, is amended to read:

Subd. 7. [OTHER POWERS.] Nothing in this chapter limits the authority of the division of gambling enforcement to exercise any other power specified under chapter 240, 340A, 349, or 349A.

Sec. 13. Minnesota Statutes 1996, section 340A.201, is amended to read:

340A.201 [LIQUOR CONTROL AUTHORITY.]

Subd. 2. [DELEGATION; 1996 CONSOLIDATION; DIVISION DIRECTOR.] Effective October 1, 1996, the duties and powers vested previously in the commissioner of public safety and delegated to the department's division of liquor control are delegated and transferred to, and consolidated with, the division of alcohol and gambling enforcement of the department of public safety, under the supervision of a director appointed by the commissioner and serving in the unclassified service at the pleasure of the commissioner.

Sec. 14. [RESPONSIBILITIES TRANSFERRED AND CONSOLIDATED INTO DIVISION OF ALCOHOL AND GAMBLING ENFORCEMENT.]

Subdivision 1. [RESPONSIBILITIES TRANSFERRED.] The responsibilities of the division of liquor control and the division of gambling enforcement are transferred and consolidated into the division of alcohol and gambling enforcement in the department of public safety, under the supervision of a director in the unclassified service appointed by the commissioner of public safety and serving at the commissioner's pleasure. The term "responsibilities" includes powers, duties, rights, obligations, and other authority imposed by law on the former divisions. The term "new division" means the division of alcohol and gambling enforcement and "former divisions" means the division of liquor control and the division of gambling enforcement.

Subd. 2. [CONTINUATION.] The new division is a continuation of the former divisions as to those responsibilities and matters within the jurisdiction of the former divisions that are transferred to the new division. Following a transfer the new division shall carry out the assigned responsibilities as though the responsibilities of the former division had not been transferred. A transfer is not a new authority for the purpose of succession to all responsibilities of the former divisions as constituted at the time of the transfer.

Subd. 3. [RULES.] Rules adopted pursuant to responsibilities that are transferred to the new division remain effective and shall be enforced until amended or repealed in accordance with law by the commissioner of public safety. The rulemaking authority of the commissioner of public safety, that existed to implement the responsibilities that are transferred from the former divisions, is retained by the commissioner.

Subd. 4. [COURT ACTIONS.] Any proceeding, court action, prosecution, or other business or matter pending on the effective date of a transfer of responsibilities may be conducted and completed under the authority of the commissioner of public safety in the same manner, under the same terms and conditions, and with the same effect as though it involved or were commenced and conducted or completed prior to the transfer.

Subd. 5. [CONTRACTS; RECORDS.] The former divisions whose responsibilities are transferred shall give all contracts, books, maps, plans, papers, records, and property of every description relating to the transferred responsibilities and within its jurisdiction or control to the new division. The new division shall accept the material presented. The transfer shall be made in accordance with the directions of the new division.

Subd. 6. [UNEXPENDED FUNDS.] The unexpended balance of any appropriation to a former division for the purposes of any responsibilities that are transferred to the new division are reappropriated to the new division under the same conditions as the original appropriation, effective retroactively to October 1, 1996.

Subd. 7. [PERSONNEL.] The position of director of the division of liquor control is abolished. The person occupying the position of director of gambling enforcement becomes the director of alcohol and gambling enforcement, a position in the unclassified service. The director serves at the pleasure of the commissioner of public safety. All other classified and unclassified positions associated with the responsibilities being transferred are transferred with their incumbents to the new division. Personnel changes are effective retroactively to October 1, 1996. Nothing in this subdivision abrogates or modifies the rights now enjoyed by affected employees under the managerial or commissioner's plan under Minnesota Statutes, section 43A.18, or the terms of an agreement between an exclusive representative of public employees and the state or one of its appointing authorities.

Sec. 15. [INSTRUCTION TO REVISOR.]

The revisor of statutes shall change the terms "division of gambling enforcement," "division of liquor control," "director of gambling enforcement," "director of the division of liquor control," and similar terms referring to either of those divisions or directors to "division of alcohol and gambling enforcement" or "director of alcohol and gambling enforcement," as appropriate:

(1) where found in Minnesota Statutes, chapters 299L, 340A, 349, and 349A, and Minnesota Statutes, sections 10A.01, subdivision 18; 13.99, subdivision 92a; 240.06, subdivisions 3 and 8; 240.07, subdivision 2; 240.08, subdivision 3; 240.09, subdivision 3a; 240.21; 297E.13, subdivision 5; 297E.16, subdivision 2; 352B.01, subdivision 2; 626.05, subdivision 2; 626.13; and 626.84, subdivision 1; and

(2) where found in Minnesota Rules.

Sec. 16. [EFFECTIVE DATE.]

Sections 1 to 14 are effective retroactively to October 1, 1996."

Delete the title and insert:

"A bill for an act relating to alcoholic beverages; restricting importation of alcoholic beverages into the state; authorizing manufacturer's warehouse permits; authorizing off-premise sales by on-sale retailers at community festivals; modifying liability insurance requirements for liquor retailers; providing penalties for violation of law governing reciprocal wine shipments; allowing municipalities to authorize on-sale of 3.2 percent malt liquor at 10 a.m. on Sundays; modifying time of day requirements for the off-sale of intoxicating liquor at a certain municipal liquor store; authorizing sale of intoxicating liquor at professional athletic events, and sale of intoxicating malt liquor at intercollegiate athletic events, at the St. Paul civic center; authorizing issuance of intoxicating liquor licenses to the St. Paul division of parks and recreation; authorizing Moorhead to issue up to three additional on-sale licenses; authorizing Spring Lake Park to issue one additional on-sale license; consolidating divisions of liquor control and gambling enforcement into division of alcohol and gambling enforcement in the department of public safety; amending Minnesota Statutes 1996, sections 16B.54, subdivision 2; 43A.34, subdivision 4; 299A.02, subdivisions 1, 2, and 3; 299L.01, subdivisions 1 and 2; 299L.02, subdivisions 4 and 5; 299L.03, subdivisions 1, 5, and 7; 340A.201; 340A.404, subdivision 4, and by adding a subdivision; 340A.409, subdivision 1; 340A.417; 340A.504, subdivisions 3 and 4; Laws 1969, chapter 783, section 1, subdivision 1, as amended; and Laws 1990, chapter 554, section 19; proposing coding for new law in Minnesota Statutes, chapter 340A."

The motion prevailed and the amendment was adopted.

Tomassoni moved to amend S. F. No. 277, as amended, as follows:

Page 12, line 21, after "2," insert "3,"

The motion prevailed and the amendment was adopted.

Kahn and Tomassoni moved to amend S. F. No. 277, as amended, as follows:

Page 9, delete section 8 and insert:

"Sec. 8. [OFF-SALE HOURS.]

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Kahn and Tomassoni amendment and the roll was called. There were 45 yeas and 81 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Garcia	Johnson, R.	McElroy	Paymar	Slawik
Bakk	Greenfield	Juhnke	Milbert	Peterson	Tomassoni
Biernat	Greiling	Kahn	Mullery	Pugh	Tompkins
Bishop	Hausman	Krinkie	Olson, E.	Reuter	Trimble
Bradley	Hilty	Kubly	Opatz	Rostberg	Spk. Carruthers
Dawkins	Holsten	Kuisle	Osskopp	Rukavina
Delmont	Jaros	Lieder	Osthoff	Schumacher
Evans	Johnson, A.	Marko	Otremba	Seifert

Those who voted in the negative were:

Abrams	Entenza	Knight	McGuire	Rhodes	Tunheim
Anderson, B.	Erhardt	Knoblach	Molnau	Rifenberg	Van Dellen
Bettermann	Finseth	Koppendrayer	Mulder	Seagren	Vickerman
Boudreau	Folliard	Koskinen	Munger	Sekhon	Wagenius
Broecker	Goodno	Kraus	Murphy	Skare	Weaver
Carlson	Gunther	Larsen	Ness	Skoglund	Wejcman
Chaudhary	Haas	Leppik	Nornes	Smith	Wenzel
Clark	Harder	Lindner	Olson, M.	Stanek	Westrom
Commers	Hasskamp	Long	Orfield	Stang	Winter
Daggett	Huntley	Luther	Ozment	Sviggum	Wolf
Davids	Jennings	Macklin	Paulsen	Swenson, D.	Workman
Dehler	Kalis	Mahon	Pawlenty	Swenson, H.
Dempsey	Kelso	Mares	Pelowski	Sykora
Dorn	Kielkucki	McCollum	Rest	Tingelstad

The motion did not prevail and the amendment was not adopted.

Davids moved to amend S. F. No. 277, as amended, as follows:

Page 6, line 20, after "privilege" insert ", or a winery located in Minnesota,"

Page 6, line 26, strike "into or out of"

Page 6, line 27, strike "Minnesota"

The motion prevailed and the amendment was adopted.

Bradley moved to amend S. F. No. 277, as amended, as follows:

Page 6, lines 32 and 33, delete the new language

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Long moved to amend S. F. No. 277, as amended, as follows:

Page 20, delete lines 33 to 36

Page 21, delete line 1

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Finseth was excused for the remainder of today's session.

Skoglund moved to amend S. F. No. 277, as amended, as follows:

Page 7, delete lines 4 to 36

Page 8, delete line 1

The motion prevailed and the amendment was adopted.

S. F. No. 277, A bill for an act relating to alcoholic beverages; providing for permits for alcoholic beverage manufacturer warehouses, central distribution centers, or holding facilities; providing certain purchase rights to certain retailers served by North Dakota wholesalers; allowing a municipality to authorize a holder of an on-sale intoxicating liquor license to dispense intoxicating liquor at community festivals; modifying liability insurance requirements for liquor retailers; allowing municipalities to authorize on-sale of 3.2 percent malt liquor at 10 a.m. on Sundays; modifying time of day restrictions for the off-sale of intoxicating liquor in municipal liquor stores in certain cities; authorizing the sale of intoxicating liquor at professional athletic events in the St. Paul civic center; authorizing the issuance of intoxicating liquor licenses to the division of parks and recreation of the city of St. Paul; authorizing the city of Moorhead to issue two additional on-sale licenses; authorizing the city of Spring Lake Park to issue one additional on-sale license; amending Minnesota Statutes 1996, sections 340A.404, subdivision 4; 340A.409, subdivisions 1 and 4; 340A.417; and 340A.504, subdivision 3; Laws 1969, chapter 783, section 1, subdivision 1, as amended; and Laws 1990, chapter 554, section 19; proposing coding for new law in Minnesota Statutes, chapter 340A.

The question was taken on the passage of the bill and the roll was called. There were 97 yeas and 28 nays as follows:

Those who voted in the affirmative were:

Abrams	Dorn	Jaros	Mares	Paymar	Sykora
Anderson, I.	Entenza	Jefferson	McElroy	Pelowski	Tomassoni
Bakk	Erhardt	Jennings	McGuire	Peterson	Tompkins
Bettermann	Evans	Johnson, A.	Milbert	Pugh	Trimble
Biernat	Folliard	Johnson, R.	Molnau	Reuter	Tunheim
Bishop	Garcia	Juhnke	Mullery	Rhodes	Vickerman
Boudreau	Goodno	Kahn	Munger	Rifenberg	Weaver
Bradley	Greenfield	Kalis	Murphy	Rostberg	Westrom
Carlson	Greiling	Koppendrayer	Ness	Rukavina	Winter
Chaudhary	Gunther	Koskinen	Nornes	Schumacher	Wolf
Commers	Haas	Kraus	Olson, E.	Seagren	Workman
Daggett	Harder	Kuisle	Opatz	Seifert	Spk. Carruthers
Davids	Hasskamp	Larsen	Osskopp	Sekhon
Dawkins	Hausman	Leppik	Otremba	Slawik
Dehler	Hilty	Lieder	Ozment	Smith
Delmont	Holsten	Luther	Paulsen	Stanek
Dempsey	Huntley	Macklin	Pawlenty	Stang

Those who voted in the negative were:

Anderson, B.	Knight	Mahon	Orfield	Sviggum	Wagenius
Broecker	Knoblach	Marko	Osthoff	Swenson, D.	Wejcman
Clark	Krinkie	McCollum	Rest	Swenson, H.	Wenzel
Kelso	Kubly	Mulder	Skare	Tingelstad
Kielkucki	Lindner	Olson, M.	Skoglund	Van Dellen

The bill was passed, as amended, and its title agreed to.

H. F. No. 1460 was reported to the House.

Macklin moved to amend H. F. No. 1460, the first engrossment, as follows:

Page 22, line 7, strike "heir at law, next of kin, or"

Page 22, line 10, before the semicolon, insert "as shown on the federal estate tax return"

Page 22, line 15, before the semicolon, insert "as shown in the trust instrument"

The motion prevailed and the amendment was adopted.

Broecker, Seagren, Paulsen, Kuisle, Larsen and Sykora moved to amend H. F. No. 1460, the first engrossment, as amended, as follows:

Page 11, delete section 20

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The question was taken on the Broecker et al amendment and the roll was called. There were 84 yeas and 40 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Knoblach	McElroy	Pawlenty	Sviggum
Anderson, B.	Dorn	Koppendrayer	Molnau	Paymar	Swenson, D.
Anderson, I.	Erhardt	Kraus	Mulder	Pelowski	Swenson, H.
Bakk	Gunther	Krinkie	Mullery	Peterson	Sykora
Bettermann	Haas	Kubly	Murphy	Reuter	Tingelstad
Bishop	Harder	Kuisle	Ness	Rifenberg	Tompkins
Boudreau	Hasskamp	Larsen	Nornes	Rostberg	Van Dellen
Bradley	Holsten	Leppik	Olson, E.	Rukavina	Vickerman
Broecker	Jaros	Lieder	Olson, M.	Schumacher	Weaver
Chaudhary	Johnson, R.	Lindner	Opatz	Seagren	Wenzel
Commers	Juhnke	Long	Osskopp	Seifert	Westrom
Daggett	Kalis	Luther	Otremba	Smith	Winter
Davids	Kielkucki	Macklin	Ozment	Stanek	Wolf
Dehler	Knight	Mares	Paulsen	Stang	Workman

Those who voted in the negative were:

Biernat	Folliard	Huntley	Mahon	Rest	Trimble
Carlson	Garcia	Jefferson	Marko	Rhodes	Tunheim
Clark	Goodno	Jennings	McCollum	Sekhon	Wagenius
Dawkins	Greenfield	Johnson, A.	McGuire	Skare	Wejcman
Delmont	Greiling	Kahn	Milbert	Skoglund	Spk. Carruthers
Entenza	Hausman	Kelso	Munger	Slawik
Evans	Hilty	Koskinen	Pugh	Tomassoni

The motion prevailed and the amendment was adopted.

Seagren moved to amend H. F. No. 1460, the first engrossment, as amended, as follows:

Page 10, line 12, after the period, insert "No immunization data may be entered into community registries without written consent of the person or the person's parent or guardian."

Amend the title accordingly

A roll call was requested and properly seconded.

Delmont raised a point of order pursuant to rule 3.09 that the Seagren amendment was not in order. The Speaker ruled the point of order not well taken and the Seagren amendment in order.

The question recurred on the Seagren amendment and the roll was called. There were 68 yeas and 57 nays as follows:

Those who voted in the affirmative were:

Abrams	Gunther	Krinkie	Ness	Rostberg	Tompkins
Anderson, B.	Haas	Kuisle	Nornes	Rukavina	Tunheim
Bettermann	Harder	Larsen	Olson, M.	Seagren	Van Dellen
Boudreau	Hasskamp	Leppik	Osskopp	Seifert	Weaver
Bradley	Holsten	Lindner	Osthoff	Smith	Wenzel
Broecker	Johnson, A.	Luther	Ozment	Stanek	Westrom
Journal of the House - 42nd Day - Top of Page 2419
Commers	Kalis	Macklin	Paulsen	Stang	Wolf
Daggett	Kielkucki	Mares	Pawlenty	Sviggum	Workman
Davids	Knight	McElroy	Pelowski	Swenson, D.
Dehler	Knoblach	Molnau	Reuter	Swenson, H.
Dempsey	Koppendrayer	Mulder	Rhodes	Sykora
Erhardt	Kraus	Murphy	Rifenberg	Tingelstad

Those who voted in the negative were:

Anderson, I.	Entenza	Jaros	Mahon	Otremba	Tomassoni
Bakk	Evans	Jefferson	Marko	Paymar	Trimble
Biernat	Folliard	Jennings	McCollum	Peterson	Vickerman
Bishop	Garcia	Johnson, R.	McGuire	Pugh	Wagenius
Carlson	Goodno	Juhnke	Milbert	Rest	Wejcman
Chaudhary	Greenfield	Kelso	Mullery	Schumacher	Winter
Clark	Greiling	Koskinen	Munger	Sekhon	Spk. Carruthers
Dawkins	Hausman	Kubly	Olson, E.	Skare
Delmont	Hilty	Lieder	Opatz	Skoglund
Dorn	Huntley	Long	Orfield	Slawik

The motion prevailed and the amendment was adopted.

H. F. No. 1460, A bill for an act relating to government data practices; making certain welfare and housing data available to law enforcement agencies; requiring certain criminal conviction data to be available through the Internet; eliminating the requirement that government agencies pay a fee for commissioner's opinions; modifying access to the identity of unmarried mothers by family services collaboratives; modifying school immunization and health record provisions; modifying patient consent to release of records for research; authorizing destruction of records of deceased patients; allowing certain voters to prevent public dissemination of their residence addresses; requiring notice of investigations to health board licensees; providing for retention of juvenile history records; providing for misdemeanor offense reports and access to certain adult criminal history data; providing for disclosure or inspection of certain tax data or return information; limiting disclosure of certain tax data under subpoena; providing criminal penalties; amending Minnesota Statutes 1996, sections 13.41, by adding a subdivision; 13.46, subdivision 2; 13.54, by adding a subdivision; 13.65, subdivision 2; 13.87, subdivision 2; 13.99, subdivision 53b, and by adding subdivisions; 123.70, subdivisions 5, 7, and 10; 144.225, subdivision 2; 144.29; 144.335, subdivision 3a, and by adding a subdivision; 201.091, subdivision 4; 214.10, subdivision 1; 260.161, subdivision 1a; 270.66, subdivision 3; 270B.01, subdivision 8; 270B.03, subdivisions 1, 3, and 4; 270B.08, subdivision 1; 270B.085, subdivision 1; 270B.09; 270B.12, subdivision 7; 270B.14, subdivision 1, and by adding subdivisions; 270B.16; 287.34; 299C.095; 299C.10, subdivision 1; and 299C.13; proposing coding for new law in Minnesota Statutes, chapters 214; and 270B; repealing Minnesota Statutes 1996, sections 13.072, subdivision 3; 13.71, subdivisions 18, 19, 20, and 21; and 13.99, subdivision 21d.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 125 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kahn	Marko	Pawlenty	Sviggum
Anderson, B.	Evans	Kalis	McCollum	Paymar	Swenson, D.
Anderson, I.	Folliard	Kelso	McElroy	Pelowski	Swenson, H.
Bettermann	Garcia	Kielkucki	McGuire	Peterson	Sykora
Biernat	Goodno	Knight	Milbert	Pugh	Tingelstad
Bishop	Greenfield	Knoblach	Molnau	Rest	Tomassoni
Boudreau	Greiling	Koppendrayer	Mulder	Reuter	Tompkins
Bradley	Gunther	Koskinen	Mullery	Rhodes	Trimble
Broecker	Haas	Kraus	Munger	Rifenberg	Tunheim
Journal of the House - 42nd Day - Top of Page 2420
Carlson	Harder	Krinkie	Murphy	Rostberg	Van Dellen
Chaudhary	Hasskamp	Kubly	Ness	Rukavina	Vickerman
Clark	Hausman	Kuisle	Nornes	Schumacher	Wagenius
Commers	Hilty	Larsen	Olson, E.	Seagren	Weaver
Daggett	Holsten	Leppik	Olson, M.	Seifert	Wejcman
Davids	Huntley	Lieder	Opatz	Sekhon	Wenzel
Dawkins	Jaros	Lindner	Orfield	Skare	Westrom
Dehler	Jefferson	Long	Osskopp	Skoglund	Winter
Delmont	Jennings	Luther	Osthoff	Slawik	Wolf
Dempsey	Johnson, A.	Macklin	Otremba	Smith	Workman
Dorn	Johnson, R.	Mahon	Ozment	Stanek	Spk. Carruthers
Entenza	Juhnke	Mares	Paulsen	Stang

The bill was passed, as amended, and its title agreed to.

Winter moved that the remaining bills on Special Orders for today be continued. The motion prevailed.

Winter moved that the bills on General Orders for today be continued. The motion prevailed.

Wejcman moved that the names of Clark and Orfield be added as authors on H. F. No. 1985. The motion prevailed.

Kielkucki moved that the following statement be printed in the Journal of the House: "Had I been present it was my intention to vote in the affirmative on Wednesday, April 16, 1997, when the vote was taken on the final passage of S. F. No. 1888, the unofficial engrossment, as amended." The motion prevailed.

Rifenberg moved that H. F. No. 1191 be returned to its author. The motion prevailed.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 156:

Slawik, Peterson and Gunther.

The Speaker announced the appointment of the Reverend Ronald A. Smith as Chaplain of the House.

Winter moved that when the House adjourns today it adjourn until 11:00 a.m., Monday, April 21, 1997. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 11:00 a.m., Monday, April 21, 1997.

Edward A. Burdick, Chief Clerk, House of Representatives