THE METHODS USED BY THE COMMITTEE TO ASSESS THE PROBLEMS OF MINNESOTA'S COURTS ARE DESCRIBED, AND THE COMMITTEE'S INTERIM RECOMMENDATIONS PERTAINING TO THE OPTIMUM USE OF JUDICIAL PERSONNEL, CLARIFICATION OF ADMINISTRATIVE DUTIES AND RESPONSIBILITIES, IMPROVED COMMUNICATION AND PARTICIPATORY MANAGEMENT, AND JUDICIAL QUALITY ARE REVIEWED. DURING ITS SECOND YEAR OF OPERATION, THE COMMITTEE FOCUSED ON PROVIDING ADEQUATE RESOURCES TO THE COURTS, CONSIDERING ALTERNATIVE METHODS OF FUNDING, AND DEVELOPING A SOUND ADMINISTRATIVE SYSTEM TO SUPPORT THE LEGISLATIVE RECOMMENDATIONS MADE EARLIER. THREE STEPS -- REMOVAL OF IMPEDIMENTS TO A MANAGEABLE COURT STRUCTURE, INDEPENDENT STATEWIDE FINANCING, AND EFFECTIVE ADMINISTRATIVE ORGANIZATION -- FOR IMPROVING THE STATE COURT SYSTEM ARE DISCUSSED, AND PROPOSALS REGARDING ENACTMENT OF THE COMMITTEE'S COURT REORGANIZATION BILL AND IMPLEMENTATION OF ADMINISTRATIVE IMPROVEMENTS ARE PRESENTED. THE PROPOSALS INCLUDE ESTABLISHMENT OF THE OFFICE OF CHIEF JUDGE AND THE POSITION OF DISTRICT ADMINISTRATOR IN EACH OF THE STATE'S 10 JUDICIAL DISTRICTS; ESTABLISHMENT OF A COUNCIL OF CHIEF JUDGES AND A COUNCIL OF DISTRICT ADMINISTRATORS, BOTH OF WHICH WOULD ENHANCE GRASSROOTS PARTICIPATION IN ADMINISTRATIVE PROBLEMSOLVING AND IMPROVE COMMUNICATION AMONG ALL LEVELS OF THE COURT SYSTEM; AND EXPANSION OF THE STAFF AND SERVICES OF THE STATE COURT ADMINISTRATOR. COSTS TO THE STATE OF IMPLEMENTING THE PROPOSALS ARE ESTIMATED. A COPY OF THE LEGISLATION PROPOSED BY THE COMMITTEE, OTHER SUPPORTING DOCUMENTATION, AND A BIBLIOGRAPHY ARE INCLUDED. (LKM)