as introduced - 83rd Legislature, 2003 1st Special Session (2003 - 2003) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 05/20/2003 |
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 the general legislative and administrative expenses of 1.4 state government and economic development; modifying 1.5 provisions related to state and local government 1.6 operations; modifying certain fee and revenue 1.7 provisions; requiring certain contractor bonding; 1.8 requiring licensure of certain gambling equipment 1.9 sales persons; modifying provisions of various state 1.10 boards and commissions; modifying certain insurance 1.11 provisions; modifying certain cosmetology provisions; 1.12 modifying certain lawful gambling provisions; 1.13 requiring studies; amending Minnesota Statutes 2002, 1.14 sections 3.885, subdivision 1; 3.971, subdivision 2; 1.15 6.48; 6.49; 6.54; 6.55; 6.64; 6.65; 6.66; 6.67; 6.68, 1.16 subdivision 1; 6.70; 6.71; 6.74; 8.06; 10A.01, 1.17 subdivision 21; 10A.02, by adding a subdivision; 1.18 10A.025, subdivision 2; 10A.03, subdivision 1; 10A.04, 1.19 subdivisions 1, 2, 4, 5, 6, by adding a subdivision; 1.20 10A.34, subdivision 1a; 14.091; 14.48, by adding a 1.21 subdivision; 16A.102, subdivision 1; 16A.11, 1.22 subdivision 3; 16A.1285, subdivision 3; 16A.151, 1.23 subdivision 5; 16A.17, by adding a subdivision; 1.24 16A.40; 16A.501; 16A.642, subdivision 1; 16B.24, 1.25 subdivision 5; 16B.35, subdivision 1; 16B.465, 1.26 subdivisions 1a, 7; 16B.47; 16B.48, subdivision 2; 1.27 16C.02, subdivision 6; 16C.03, by adding a 1.28 subdivision; 16C.05, subdivision 2, by adding a 1.29 subdivision; 16C.06, subdivision 1; 16C.08, 1.30 subdivisions 2, 3, 4, by adding a subdivision; 16C.10, 1.31 subdivision 7; 16D.08, subdivision 2; 16E.01, 1.32 subdivision 3; 16E.07, subdivision 9; 43A.17, 1.33 subdivision 9; 69.772, subdivision 2; 115A.929; 1.34 116J.8771; 197.608; 237.49; 237.52, subdivision 3; 1.35 237.701, subdivision 1; 240.03; 240.10; 240.15, 1.36 subdivision 6; 240.155, subdivision 1; 240A.03, 1.37 subdivision 10; 240A.04; 240A.06, subdivision 1; 1.38 256B.435, subdivision 2a; 268.186; 270.052; 270.44; 1.39 270A.07, subdivision 1; 289A.08, subdivision 16; 1.40 306.95; 349.12, subdivision 25, by adding a 1.41 subdivision; 349.151, subdivisions 4, 4b; 349.155, 1.42 subdivision 3; 349.16, subdivision 6; 349.161, 1.43 subdivisions 1, 4, 5; 349.162, subdivision 1; 349.163, 1.44 subdivisions 2, 6; 349.164, subdivision 4; 349.165, 1.45 subdivision 3; 349.166, subdivisions 1, 2; 349A.08, 1.46 subdivision 5; 403.02, subdivision 10; 403.06; 403.07, 2.1 subdivisions 1, 2, 3; 403.09, subdivision 1; 403.11; 2.2 403.113; 458D.17, subdivision 5; 471.696; 471.999; 2.3 473.891, subdivision 10, by adding a subdivision; 2.4 473.898, subdivisions 1, 3; 473.901; 473.902, by 2.5 adding a subdivision; 473.907, subdivision 1; 2.6 477A.014, subdivision 4; Laws 1998, chapter 366, 2.7 section 80, as amended; Laws 2002, chapter 331, 2.8 section 19; proposing coding for new law in Minnesota 2.9 Statutes, chapters 3A; 6; 16C; 43A; 60A; 326; 349; 2.10 repealing Minnesota Statutes 2002, sections 3.305, 2.11 subdivision 5; 3.971, subdivision 8; 3A.11; 4A.055; 2.12 6.77; 12.221, subdivision 5; 16A.87; 16B.50; 16C.07; 2.13 16E.09; 149A.97, subdivision 8; 155A.03, subdivisions 2.14 14, 15; 155A.07, subdivision 9; 163.10; 306.97; 2.15 Minnesota Rules, part 1950.1070. 2.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.17 ARTICLE 1 2.18 STATE GOVERNMENT APPROPRIATIONS 2.19 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 2.20 The sums shown in the columns marked "APPROPRIATIONS" are 2.21 appropriated from the general fund, or another fund named, to 2.22 the agencies and for the purposes specified in this act, to be 2.23 available for the fiscal years indicated for each purpose. The 2.24 figures "2003," "2004," and "2005," where used in this act, mean 2.25 that the appropriation or appropriations listed under them are 2.26 available for the year ending June 30, 2003, June 30, 2004, or 2.27 June 30, 2005, respectively. 2.28 SUMMARY BY FUND 2.29 2004 2005 TOTAL 2.30 General $ 264,857,000 $ 267,568,000 $ 532,425,000 2.31 For 2003 - $369,000 2.32 Health Care 2.33 Access 1,782,000 1,782,000 3,564,000 2.34 State Government 2.35 Special Revenue 25,024,000 31,629,000 56,653,000 2.36 Environmental 520,000 436,000 956,000 2.37 Remediation 484,000 484,000 968,000 2.38 Special Revenue 2,947,000 2,947,000 5,894,000 2.39 Highway User Tax 2.40 Distribution 2,097,000 2,097,000 4,194,000 2.41 Workers' 2.42 Compensation 7,286,000 7,349,000 14,635,000 2.43 TOTAL $ 304,997,000 $ 314,292,000 $ 619,289,000 2.44 APPROPRIATIONS 2.45 Available for the Year 2.46 Ending June 30 3.1 2004 2005 3.2 Sec. 2. LEGISLATURE 3.3 Subdivision 1. Total 3.4 Appropriation $58,328,000 $58,328,000 3.5 Summary by Fund 3.6 General 58,200,000 58,200,000 3.7 Health Care Access 128,000 128,000 3.8 The amounts that may be spent from this 3.9 appropriation for each program are 3.10 specified in the following subdivisions. 3.11 Subd. 2. Senate 3.12 19,319,000 19,319,000 3.13 Subd. 3. House of Representatives 3.14 25,993,000 25,993,000 3.15 Subd. 4. Legislative 3.16 Coordinating Commission 3.17 13,016,000 13,016,000 3.18 Summary by Fund 3.19 General 12,888,000 12,888,000 3.20 Health Care Access 128,000 128,000 3.21 $5,023,000 the first year and 3.22 $5,023,000 the second year are for the 3.23 office of the revisor of statutes. 3.24 $1,086,000 the first year and 3.25 $1,086,000 the second year are for the 3.26 legislative reference library. 3.27 $4,623,000 the first year and 3.28 $4,623,000 the second year are for the 3.29 office of the legislative auditor. 3.30 $360,000 the first year and $360,000 3.31 the second year are for public 3.32 information television, Internet, 3.33 Intranet, and other transmission of 3.34 legislative activities. At least 3.35 one-half must go for programming to be 3.36 broadcast and transmitted to rural 3.37 Minnesota. 3.38 During the biennium ending June 30, 3.39 2005, the legislative coordinating 3.40 commission, the office of the 3.41 legislative auditor, and the office of 3.42 the revisor of statutes are not subject 3.43 to the limitations in uses of funds 3.44 provided under Minnesota Statutes, 3.45 section 16A.281. 3.46 During the biennium ending June 30, 3.47 2005, a legislative commission or 3.48 subcommittee of the legislative 3.49 coordinating commission may by 3.50 resolution adopt per diem payments for 4.1 members attending commission meetings 4.2 that are less than the payments 4.3 permitted by rules of the house of 4.4 representatives and the senate. 4.5 (a) If the legislative coordinating 4.6 commission requires employees under its 4.7 jurisdiction to take temporary leave 4.8 without pay during the biennium ending 4.9 June 30, 2005, the first 80 hours of 4.10 leave without pay in fiscal year 2004 4.11 and the first 80 hours of leave without 4.12 pay in fiscal year 2005 are governed by 4.13 this paragraph. The commission must 4.14 permit employees taking this leave to 4.15 continue accruing vacation and sick 4.16 leave, be eligible for paid holidays 4.17 and insurance benefits, accrue 4.18 seniority, and accrue service credit 4.19 and credited salary in state retirement 4.20 plans permitting service credits for 4.21 authorized leaves of absence as if the 4.22 employee had actually been employed 4.23 during the time of the leave. The 4.24 commission may make the employer 4.25 contribution to the employee's 4.26 retirement plan if the employee 4.27 participates in a defined contribution 4.28 plan. If the leave without pay is for 4.29 one full pay period or longer, any 4.30 holiday pay must be included in the 4.31 first payroll warrant after return from 4.32 the leave. Managers must attempt to 4.33 schedule leaves to meet the needs of 4.34 employees and the need to continue 4.35 efficient operation of their offices. 4.36 (b) Notwithstanding Minnesota Statutes, 4.37 section 43A.18, subdivisions 2 and 3, 4.38 the legislative coordinating commission 4.39 may require employees in the office of 4.40 the legislative auditor whose terms and 4.41 conditions of employment are determined 4.42 through the commissioner and managerial 4.43 compensation plans to take leave 4.44 without pay as described in paragraph 4.45 (a). 4.46 Sec. 3. GOVERNOR AND 4.47 LIEUTENANT GOVERNOR 3,586,000 3,586,000 4.48 This appropriation is to fund the 4.49 offices of the governor and lieutenant 4.50 governor. 4.51 $19,000 the first year and $19,000 the 4.52 second year are for necessary expenses 4.53 in the normal performance of the 4.54 governor's and lieutenant governor's 4.55 duties for which no other reimbursement 4.56 is provided. 4.57 By September 1 of each year, the 4.58 commissioner of finance shall report to 4.59 the chairs of the senate governmental 4.60 operations budget division and the 4.61 house state government finance division 4.62 any personnel costs incurred by the 4.63 office of the governor and lieutenant 4.64 governor that were supported by 4.65 appropriations to other agencies during 5.1 the previous fiscal year. The office 5.2 of the governor shall inform the chairs 5.3 of the divisions before initiating any 5.4 interagency agreements. 5.5 Sec. 4. STATE AUDITOR 8,306,000 8,306,000 5.6 Sec. 5. ATTORNEY GENERAL 24,800,000 24,779,000 5.7 Summary by Fund 5.8 General 22,559,000 22,559,000 5.9 State Government 5.10 Special Revenue 1,612,000 1,591,000 5.11 Environmental 145,000 145,000 5.12 Remediation 484,000 484,000 5.13 Sec. 6. SECRETARY OF STATE 5,912,000 6,032,000 5.14 For 2003 - $369,000 5.15 $369,000 is appropriated in fiscal year 5.16 2003 from the general fund to the 5.17 secretary of state for payment of the 5.18 attorney fees awarded by court order in 5.19 Zachman et al. vs. Kiffmeyer et al. 5.20 This is a onetime appropriation and not 5.21 added to the secretary of state's base 5.22 budget. 5.23 Sec. 7. CAMPAIGN FINANCE AND 5.24 PUBLIC DISCLOSURE BOARD 712,000 712,000 5.25 Sec. 8. INVESTMENT BOARD 2,167,000 2,167,000 5.26 Sec. 9. ADMINISTRATIVE HEARINGS 7,186,000 7,249,000 5.27 This appropriation is from the workers' 5.28 compensation fund. 5.29 Fee rates charged during fiscal years 5.30 2004 and 2005 by the Administrative Law 5.31 Division of the Office of 5.32 Administrative Hearings must be reduced 5.33 by ten percent from fiscal year 2003 5.34 levels. 5.35 Sec. 10. OFFICE OF STRATEGIC 5.36 AND LONG-RANGE PLANNING 3,314,000 3,314,000 5.37 $50,000 the first year and $50,000 the 5.38 second year are for a grant to the 5.39 Northern Counties Land Use Coordinating 5.40 Board for purposes of the pilot project 5.41 established in Laws 2002, chapter 373, 5.42 section 33. The pilot project is 5.43 extended until June 30, 2005. This is 5.44 a onetime appropriation. 5.45 Sec. 11. ADMINISTRATION 5.46 Subdivision 1. Total 5.47 Appropriation 21,422,000 20,922,000 5.48 The amounts that may be spent from this 5.49 appropriation for each program are 5.50 specified in the following subdivisions. 6.1 Subd. 2. Operations Management 6.2 2,669,000 2,669,000 6.3 The commissioner of administration, in 6.4 consultation with heads of other 6.5 executive agencies, must identify state 6.6 agency: (1) telecommunication device 6.7 usage; and (2) vehicle usage, that is 6.8 not cost-efficient. The commissioner 6.9 must implement policies to reduce usage 6.10 that is found not to be 6.11 cost-efficient. The commissioner must 6.12 report to the legislature by January 6.13 15, 2004, on implementation of this 6.14 section, including savings achieved by 6.15 eliminating usage that is not 6.16 cost-efficient. 6.17 Subd. 3. Office of Technology 6.18 2,479,000 2,479,000 6.19 Subd. 4. Facilities Management 6.20 11,541,000 11,041,000 6.21 $7,888,000 the first year and 6.22 $7,888,000 the second year are for 6.23 office space costs of the legislature 6.24 and veterans organizations, for 6.25 ceremonial space, and for statutorily 6.26 free space. 6.27 $500,000 the first year is for onetime 6.28 funding of agency relocation expenses. 6.29 $2,050,000 in the first year and 6.30 $2,050,000 in the second year of the 6.31 balance in the facility repair and 6.32 replacement account in the state 6.33 government special revenue fund is 6.34 canceled to the general fund. This 6.35 amount is in addition to amounts 6.36 transferred under Minnesota Statutes, 6.37 section 16B.24, subdivision 5. 6.38 Subd. 5. Management Services 6.39 2,830,000 2,830,000 6.40 $196,000 the first year and $196,000 6.41 the second year are for the office of 6.42 the state archaeologist. 6.43 $74,000 the first year and $74,000 the 6.44 second year are for the developmental 6.45 disabilities council. 6.46 Subd. 6. Public Broadcasting 6.47 1,903,000 1,903,000 6.48 $1,175,000 the first year and 6.49 $1,175,000 the second year are for 6.50 matching grants for public television. 6.51 $203,000 the first year and $203,000 6.52 the second year are for public 6.53 television equipment grants. 7.1 Equipment or matching grant allocations 7.2 shall be made after considering the 7.3 recommendations of the Minnesota public 7.4 television association. 7.5 $17,000 the first year and $17,000 the 7.6 second year are for grants to the Twin 7.7 Cities regional cable channel. 7.8 $313,000 the first year and $313,000 7.9 the second year are for community 7.10 service grants to public educational 7.11 radio stations. The grants must be 7.12 allocated after considering the 7.13 recommendations of the association of 7.14 Minnesota public educational radio 7.15 stations under Minnesota Statutes, 7.16 section 129D.14. 7.17 $195,000 the first year and $195,000 7.18 the second year are for equipment 7.19 grants to Minnesota Public Radio, Inc. 7.20 Any unencumbered balance remaining the 7.21 first year for grants to public 7.22 television or radio stations does not 7.23 cancel and is available for the second 7.24 year. 7.25 Sec. 12. CAPITOL AREA ARCHITECTURAL 7.26 AND PLANNING BOARD 262,000 262,000 7.27 During the biennium ending June 30, 7.28 2005, money received by the board from 7.29 public agencies, as provided by 7.30 Minnesota Statutes, section 15.50, 7.31 subdivision 40, is appropriated to the 7.32 board. 7.33 Sec. 13. FINANCE 7.34 Subdivision 1. Total 7.35 Appropriation 15,216,000 15,216,000 7.36 The amounts that may be spent from this 7.37 appropriation for each program are 7.38 specified in the following subdivisions. 7.39 Subd. 2. State Financial Management 7.40 8,711,000 8,711,000 7.41 Subd. 3. Information and 7.42 Management Services 7.43 6,505,000 6,505,000 7.44 Sec. 14. EMPLOYEE RELATIONS 7.45 Subdivision 1. Total 7.46 Appropriation 6,188,000 6,188,000 7.47 The amounts that may be spent from this 7.48 appropriation for each program are 7.49 specified in the following subdivisions. 7.50 Subd. 2. Employee Insurance 7.51 63,000 63,000 7.52 Subd. 3. Human Resources Management 8.1 6,125,000 6,125,000 8.2 The commissioner of employee relations 8.3 shall convene a work group to study the 8.4 structure of current human resources 8.5 processes and responsibilities related 8.6 to technology systems. The study 8.7 should include: 8.8 (1) an analysis of the current division 8.9 of labor for completing standard human 8.10 resource electronic transactions; 8.11 (2) opportunities for improvements to 8.12 the current structure that will create 8.13 more effective and efficient methods of 8.14 operation; 8.15 (3) the recommended course of action to 8.16 maximize the use of statewide systems 8.17 and resources; and 8.18 (4) a plan to address any fiscal impact 8.19 necessitated by the proposed plan. 8.20 The commissioner must provide a report 8.21 of findings to the chairs of the house 8.22 state government finance committee and 8.23 senate state government budget division 8.24 by January 19, 2004. 8.25 Subd. 4. Insurance Contingency Reserve 8.26 By June 30, 2005, the commissioner of 8.27 finance shall transfer $23,000,000 of 8.28 the contingency reserve within the 8.29 employee insurance trust fund 8.30 maintained under Minnesota Statutes, 8.31 section 43A.30, subdivision 6, to the 8.32 general fund. 8.33 Sec. 15. REVENUE 8.34 Subdivision 1. Total 8.35 Appropriation 93,442,000 97,596,000 8.36 Summary by Fund 8.37 General 89,316,000 93,554,000 8.38 Health Care Access 1,654,000 1,654,000 8.39 Highway User 8.40 Tax Distribution 2,097,000 2,097,000 8.41 Environmental 375,000 291,000 8.42 The amounts that may be spent from this 8.43 appropriation for each program are 8.44 specified in the following subdivisions. 8.45 Subd. 2. Tax System Management 8.46 78,842,000 81,872,000 8.47 Summary by Fund 8.48 General 74,716,000 77,830,000 8.49 Health Care Access 1,654,000 1,654,000 9.1 Highway User 9.2 Tax Distribution 2,097,000 2,097,000 9.3 Environmental 375,000 291,000 9.4 $2,742,000 the first year and 9.5 $5,856,000 the second year are for 9.6 additional activities to identify and 9.7 collect tax liabilities from 9.8 individuals and businesses that 9.9 currently do not pay all taxes owed. 9.10 This initiative is expected to result 9.11 in new general fund revenues of 9.12 $59,838,000 for the biennium ending 9.13 June 30, 2005. 9.14 The department must report to the 9.15 chairs of the house ways and means and 9.16 senate finance committees by March 1, 9.17 2004, and January 15, 2005, on the 9.18 following performance indicators: 9.19 (1) the number of corporations 9.20 noncompliant with the corporate tax 9.21 system each year and the percentage and 9.22 dollar amounts of valid tax liabilities 9.23 collected; 9.24 (2) the number of businesses 9.25 noncompliant with the sales and use tax 9.26 system and the percentage and dollar 9.27 amounts of the valid tax liabilities 9.28 collected; and 9.29 (3) the number of individual 9.30 noncompliant cases resolved and the 9.31 percentage and dollar amounts of valid 9.32 tax liabilities collected. 9.33 The reports must also identify base 9.34 level expenditures and staff positions 9.35 related to compliance and audit 9.36 activities, including baseline 9.37 information as of January 1, 2002. The 9.38 information must be provided at the 9.39 budget activity level. 9.40 $30,000 from the general fund the first 9.41 year and $30,000 from the general fund 9.42 the second year are for the preparation 9.43 of the income tax sample. 9.44 Subd. 3. Accounts Receivable Management 9.45 14,600,000 15,724,000 9.46 $1,558,000 the first year and 9.47 $2,682,000 the second year are for 9.48 additional activities to identify and 9.49 collect tax liabilities from 9.50 individuals and businesses that 9.51 currently do not pay all taxes owed. 9.52 Sec. 16. MILITARY AFFAIRS 9.53 Subdivision 1. Total 9.54 Appropriation 12,279,000 12,279,000 9.55 The amounts that may be spent from this 9.56 appropriation for each program are 9.57 specified in the following subdivisions. 10.1 Subd. 2. Maintenance of Training 10.2 Facilities 10.3 5,590,000 5,590,000 10.4 Subd. 3. General Support 10.5 1,757,000 1,757,000 10.6 Subd. 4. Enlistment Incentives 10.7 4,857,000 4,857,000 10.8 If appropriations for either year of 10.9 the biennium are insufficient, the 10.10 appropriation from the other year is 10.11 available. The appropriations for 10.12 enlistment incentives are available 10.13 until expended. 10.14 $500,000 of the appropriation in Laws 10.15 2001, First Special Session chapter 10, 10.16 article 1, section 17, subdivision 4, 10.17 for enlistment incentives is canceled 10.18 to the general fund. 10.19 Subd. 5. Emergency Services 10.20 75,000 75,000 10.21 These appropriations are for expenses 10.22 of military forces ordered to active 10.23 duty under Minnesota Statutes, chapter 10.24 192. If the appropriation for either 10.25 year is insufficient, the appropriation 10.26 for the other year is available for it. 10.27 Sec. 17. VETERANS AFFAIRS 4,188,000 4,138,000 10.28 $186,000 of the appropriation in Laws 10.29 1997, chapter 202, article 1, section 10.30 19, and Laws 1999, chapter 250, article 10.31 1, section 18, for the Gulf War bonus 10.32 program is canceled to the general fund. 10.33 $10,000 of the appropriation in Laws 10.34 1997, chapter 202, article 1, section 10.35 19, for the Park Rapids veterans 10.36 memorial is canceled to the general 10.37 fund. 10.38 $200,000 the first year and $150,000 10.39 the second year are for grants to 10.40 Vinland Center. This is a onetime 10.41 appropriation and does not become part 10.42 of the base. 10.43 Sec. 18. VETERANS OF FOREIGN 10.44 WARS 55,000 55,000 10.45 For carrying out the provisions of Laws 10.46 1945, chapter 455. 10.47 Sec. 19. MILITARY ORDER OF 10.48 THE PURPLE HEART 20,000 20,000 10.49 Sec. 20. DISABLED AMERICAN VETERANS 13,000 13,000 10.50 For carrying out the provisions of Laws 10.51 1941, chapter 425. 11.1 Sec. 21. GAMBLING CONTROL 2,728,000 2,526,000 11.2 Summary by Fund 11.3 General 202,000 -0- 11.4 Special Revenue 2,526,000 2,526,000 11.5 The general fund appropriation in 11.6 fiscal year 2004 is intended to assist 11.7 with the transition to fee-based 11.8 funding. The commissioner of finance 11.9 must approve the use of this onetime 11.10 appropriation and must require that it 11.11 be reimbursed to the general fund if 11.12 sufficient resources are available in 11.13 the special revenue fund. 11.14 The special revenue fund appropriation 11.15 is made from the lawful gambling 11.16 regulation account. 11.17 Sec. 22. RACING COMMISSION 525,000 421,000 11.18 Summary by Fund 11.19 General 104,000 -0- 11.20 Special Revenue 421,000 421,000 11.21 The general fund appropriation in 11.22 fiscal year 2004 is intended to assist 11.23 with the transition to fee-based 11.24 funding. The commissioner of finance 11.25 must approve the use of this onetime 11.26 appropriation and must require that it 11.27 be reimbursed to the general fund from 11.28 the special revenue fund. 11.29 The special revenue fund appropriation 11.30 is made from the racing and card 11.31 playing regulation account. 11.32 Sec. 23. STATE LOTTERY 11.33 Notwithstanding Minnesota Statutes, 11.34 section 349A.10, the operating budget 11.35 must not exceed $43,538,000 in fiscal 11.36 year 2004 and $43,538,000 in fiscal 11.37 year 2005 and thereafter. The savings 11.38 must be transferred 60 percent to the 11.39 general fund in the state treasury and 11.40 40 percent to the Minnesota environment 11.41 and natural resources trust fund in the 11.42 state treasury. 11.43 Sec. 24. AMATEUR SPORTS 11.44 COMMISSION 525,000 525,000 11.45 $225,000 the first year and $225,000 11.46 the second year may only be spent up to 11.47 the amount of offsetting fee revenue 11.48 generated by the commission under 11.49 Minnesota Statutes, section 240A.03. 11.50 Sec. 25. TORT CLAIMS 161,000 161,000 11.51 To be spent by the commissioner of 11.52 finance. 11.53 If the appropriation for either year is 12.1 insufficient, the appropriation for the 12.2 other year is available for it. 12.3 Sec. 26. MINNESOTA STATE 12.4 RETIREMENT SYSTEM 2,518,000 2,727,000 12.5 The amounts estimated to be needed for 12.6 each program are as follows: 12.7 (a) Legislators 12.8 2,150,000 2,300,000 12.9 Under Minnesota Statutes, sections 12.10 3A.03, subdivision 2; 3A.04, 12.11 subdivisions 3 and 4; and 3A.11. 12.12 (b) Constitutional Officers 12.13 368,000 427,000 12.14 Under Minnesota Statutes, sections 12.15 352C.031, subdivision 5; 352C.04, 12.16 subdivision 3; and 352C.09, subdivision 12.17 2. 12.18 If an appropriation in this section for 12.19 either year is insufficient, the 12.20 appropriation for the other year is 12.21 available for it. 12.22 Sec. 27. MINNEAPOLIS EMPLOYEES 12.23 RETIREMENT FUND 6,632,000 6,632,000 12.24 Sec. 28. GENERAL CONTINGENT 12.25 ACCOUNTS 1,500,000 500,000 12.26 Summary by Fund 12.27 General 1,000,000 -0- 12.28 State Government 12.29 Special Revenue 400,000 400,000 12.30 Workers' 12.31 Compensation 100,000 100,000 12.32 The appropriations in this section may 12.33 only be spent with the approval of the 12.34 governor after consultation with the 12.35 legislative advisory commission 12.36 pursuant to Minnesota Statutes, section 12.37 3.30. 12.38 If an appropriation in this section for 12.39 either year is insufficient, the 12.40 appropriation for the other year is 12.41 available for it. 12.42 Sec. 29. PUBLIC SAFETY 23,012,000 29,640,000 12.43 This appropriation is from the state 12.44 government special revenue fund for 911 12.45 emergency telecommunications services. 12.46 (a) Public Safety Answering Points 12.47 6,970,000 8,522,000 12.48 To be distributed as provided in 12.49 Minnesota Statutes, section 403.113, 13.1 subdivision 2. 13.2 This appropriation may only be used for 13.3 public safety answering points that 13.4 have implemented enhanced 911 service 13.5 or whose governmental agency has made a 13.6 binding commitment to the commissioner 13.7 of public safety to implement enhanced 13.8 911 service by January 1, 2008. 13.9 (b) Consolidation and Minimum Standards 13.10 Study 13.11 150,000 -0- 13.12 The public safety radio communication 13.13 system planning committee shall study 13.14 and make recommendations on the 13.15 feasibility of consolidating public 13.16 safety answering points. In making 13.17 recommendations, the planning committee 13.18 must consider a cost-benefit analysis 13.19 of consolidations, the impact on public 13.20 safety, interoperability issues, and 13.21 best practices models. 13.22 In addition, the planning committee 13.23 shall recommend minimum standards for 13.24 public safety answering points and 13.25 recommend possible funding incentives 13.26 for consolidation. The planning 13.27 committee shall report its findings to 13.28 the chairs of the senate crime 13.29 prevention and public safety committee, 13.30 the senate state government budget 13.31 division, and the house judiciary 13.32 policy and finance committee by January 13.33 15, 2004. 13.34 Sec. 30. [GENERAL REDUCTION.] 13.35 The commissioner of finance shall reduce general fund 13.36 appropriations to executive branch state agencies for state 13.37 agency operations in the biennium ending June 30, 2005, by 13.38 $17,581,000. The reduction to the Minnesota state colleges and 13.39 universities must not be more than $2,500,000. The reductions 13.40 to state constitutional officers must be the same percentage of 13.41 each officer's general fund appropriation. 13.42 Sec. 31. [SALE OF STATE LAND.] 13.43 Subdivision 1. [STATE LAND SALES.] The commissioner of 13.44 administration shall coordinate with the head of each department 13.45 or agency having control of state-owned land to identify and 13.46 sell at least $5,505,000 of state-owned land. Sales should be 13.47 completed according to law and as provided in this section as 13.48 soon as practicable but no later than June 30, 2005. 13.49 Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, or 14.1 any other law to the contrary, the commissioner may offer land 14.2 for public sale by only providing notice of lands or an offer of 14.3 sale of lands to state departments or agencies, the University 14.4 of Minnesota, cities, counties, towns, school districts, or 14.5 other public entities. 14.6 Subd. 2. [ANTICIPATED SAVINGS.] Notwithstanding Minnesota 14.7 Statutes, section 94.16, subdivision 3, or other law to the 14.8 contrary, the amount of the proceeds from the sale of land under 14.9 this section that exceeds the actual expenses of selling the 14.10 land must be deposited in the general fund, except as otherwise 14.11 provided by the commissioner of finance. Notwithstanding 14.12 Minnesota Statutes, section 94.11, the commissioner of finance 14.13 may establish the timing of payments for land purchased under 14.14 this section. If the total of all money deposited into the 14.15 general fund from the proceeds of the sale of land under this 14.16 section is anticipated to be less than $5,505,000, the governor 14.17 must allocate the amount of the difference as reductions to 14.18 general fund operating expenditures for other executive agencies 14.19 for the biennium ending June 30, 2005. 14.20 Subd. 3. [STATE LAND SALES FOR CONSIDERATION.] Based on 14.21 the inventory of state-owned land under Laws 2002, chapter 393, 14.22 section 36, the commissioner of administration with the 14.23 cooperation of the responsible agency head may consider the 14.24 following for sale under this section: 14.25 (1) the BCA property at 1246 University Avenue in St. Paul 14.26 with a public use classification of "to be determined"; and 14.27 (2) other land identified as surplus in the inventory of 14.28 state-owned land. 14.29 Subd. 4. [SALE OF STATE LANDS REVOLVING LOAN 14.30 FUND.] $180,075 is appropriated from the general fund in fiscal 14.31 year 2004 to the commissioner of administration for purposes of 14.32 paying the actual expenses of selling state-owned lands to 14.33 achieve the anticipated savings required in this section. From 14.34 the gross proceeds of land sales under this section, the 14.35 commissioner of administration must cancel the amount of the 14.36 appropriation in this subdivision to the general fund by June 15.1 30, 2005. 15.2 Sec. 32. [EFFECTIVE DATE.] 15.3 The appropriations for fiscal year 2003 are effective the 15.4 day following final enactment. 15.5 ARTICLE 2 15.6 STATE GOVERNMENT OPERATIONS 15.7 Section 1. Minnesota Statutes 2002, section 3.885, 15.8 subdivision 1, is amended to read: 15.9 Subdivision 1. [MEMBERSHIP.] The legislative commission on 15.10 planning and fiscal policy consists of18nine members of the 15.11 senate appointed by the subcommittee on committees of the 15.12 committee on rules and administration and nine members of the 15.13 house of representatives appointed by thelegislative15.14coordinating commissionspeaker. Vacancies on the commission 15.15 are filled in the same manner as original appointments. The 15.16 commission shall elect a chair and a vice-chair from among its 15.17 members. The chair alternates between a member of the senate 15.18 and a member of the house in January of each odd-numbered year. 15.19 Sec. 2. Minnesota Statutes 2002, section 3.971, 15.20 subdivision 2, is amended to read: 15.21 Subd. 2. [STAFF; COMPENSATION.] The legislative auditor 15.22 shall establish a financial audits division and a program 15.23 evaluation division to fulfill the duties prescribed in this 15.24 section. Each divisionmustmay be supervised by a deputy 15.25 auditor, appointed by the legislative auditor, with the approval 15.26 of the commission, for a term coterminous with the legislative 15.27 auditor's term. The deputy auditors may be removed before the 15.28 expiration of their terms only for cause. The legislative 15.29 auditor and deputy auditors may each appoint a confidential 15.30 secretary to serve at pleasure. The salaries and benefits of 15.31 the legislative auditor, deputy auditors and confidential 15.32 secretaries shall be determined by the compensation plan 15.33 approved by the legislative coordinating commission. The deputy 15.34 auditors may perform and exercise the powers, duties and 15.35 responsibilities imposed by law on the legislative auditor when 15.36 authorized by the legislative auditor. The deputy auditors and 16.1 the confidential secretaries serve in the unclassified civil 16.2 service, but all other employees of the legislative auditor are 16.3 in the classified civil service. While in office, a person 16.4 appointed deputy for the financial audit division must hold an 16.5 active license as a certified public accountant. 16.6 Sec. 3. [3A.115] 16.7 The amount necessary to fund the retirement allowance 16.8 granted under this chapter to a former legislator upon 16.9 retirement is appropriated from the general fund to the director 16.10 to pay pension obligations due to the retiree. Retirement 16.11 allowances payable to retired legislators and their survivors 16.12 under this chapter must be adjusted in the same manner, at the 16.13 same times, and in the same amounts as are benefits payable from 16.14 the Minnesota postretirement investment fund to retirees of a 16.15 participating public pension fund. 16.16 Sec. 4. Minnesota Statutes 2002, section 6.48, is amended 16.17 to read: 16.18 6.48 [EXAMINATION OF COUNTIES; COST, FEES.] 16.19 All the powers and duties conferred and imposed upon the 16.20 state auditor shall be exercised and performed by the state 16.21 auditor in respect to the offices, institutions, public 16.22 property, and improvements of several counties of the state. At 16.23 least once in each year, if funds and personnel permit, the 16.24 state auditorshallmay visit, without previous notice, each 16.25 county and make a thorough examination of all accounts and 16.26 records relating to the receipt and disbursement of the public 16.27 funds and the custody of the public funds and other 16.28 property. If the audit is performed by a private certified 16.29 public accountant, the state auditor may require additional 16.30 information from the private certified public accountant as the 16.31 state auditor deems in the public interest. The state auditor 16.32 may accept the audit or make additional examinations as the 16.33 state auditor deems to be in the public interest. The state 16.34 auditor shall prescribe and install systems of accounts and 16.35 financial reports that shall be uniform, so far as practicable, 16.36 for the same class of offices. A copy of the report of such 17.1 examination shall be filed and be subject to public inspection 17.2 in the office of the state auditor and another copy in the 17.3 office of the auditor of the county thus examined. The state 17.4 auditor may accept the records and audit, or any part thereof, 17.5 of the department of human services in lieu of examination of 17.6 the county social welfare funds, if such audit has been made 17.7 within any period covered by the state auditor's audit of the 17.8 other records of the county. If any such examination shall 17.9 disclose malfeasance, misfeasance, or nonfeasance in any office 17.10 of such county, such report shall be filed with the county 17.11 attorney of the county, and the county attorney shall institute 17.12 such civil and criminal proceedings as the law and the 17.13 protection of the public interests shall require. 17.14 The county receivingsuchany examination shall pay to the 17.15 state general fund, notwithstanding the provisions of section 17.16 16A.125, the total cost and expenses of such examinations, 17.17 including the salaries paid to the examiners while actually 17.18 engaged in making such examination. The state auditor on 17.19 deeming it advisable may bill counties, having a population of 17.20 200,000 or over, monthly for services rendered and the officials 17.21 responsible for approving and paying claims shall cause said 17.22 bill to be promptly paid. The general fund shall be credited 17.23 with all collections made for any such examinations. 17.24 Sec. 5. Minnesota Statutes 2002, section 6.49, is amended 17.25 to read: 17.26 6.49 [CITIES OF FIRST CLASS.] 17.27 All powers and duties conferred and imposed upon the state 17.28 auditor with respect to state and county officers, institutions, 17.29 property, and improvements are hereby extended to cities of the 17.30 first class. Copies of the written report of the state auditor 17.31 on the financial condition and accounts of such city shall be 17.32 filed in the state auditor's office, with the mayor, city 17.33 council, and city comptroller thereof, and with the city 17.34 commissioners, if such city have such officers. If such report 17.35 disclose malfeasance, misfeasance, or nonfeasance in office, 17.36 copies thereof shall be filed with the city attorney thereof and 18.1 with the county attorney of the county in which such city is 18.2 located, and these officials of the law shall institute such 18.3 proceedings, civil or criminal, as the law and the public 18.4 interest require. 18.5 The state auditormayshall bill said cities monthly for 18.6 services rendered, including any examination, and the officials 18.7 responsible for approving and paying claims shall cause said 18.8 bill to be promptly paid. 18.9 Sec. 6. Minnesota Statutes 2002, section 6.54, is amended 18.10 to read: 18.11 6.54 [EXAMINATION OF COUNTY AND MUNICIPAL RECORDS PURSUANT 18.12 TO PETITION.] 18.13 The registered voters in a county or home rule charter or 18.14 statutory city or the electors at an annual or special town 18.15 meeting of a town may petition the state auditor to examine the 18.16 books, records, accounts, and affairs of the county, home rule 18.17 charter or statutory city, town, or of any organizational unit, 18.18 activity, project, enterprise, or fund thereof; and the scope of 18.19 the examination may be limited by the petition, but the 18.20 examination shall cover, at least, all cash received and 18.21 disbursed and the transactions relating thereto, provided that 18.22 the state auditor shall not examine more than the six latest 18.23 years preceding the circulation of the petition, unless it 18.24 appears to the state auditor during the examination that the 18.25 audit period should be extended to permit a full recovery under 18.26 bonds furnished by public officers or employees, and may if it 18.27 appears to the auditor in the public interest confine the period 18.28 or the scope of audit or both period and scope of audit, to less 18.29 than that requested by the petition. In the case of a county or 18.30 home rule charter or statutory city, the petition shall be 18.31 signed by a number of registered voters at least equal to 20 18.32 percent of those voting in the last presidential election. The 18.33 eligible voters of any school district may petition the state 18.34 auditor, who shall be subject to the same restrictions regarding 18.35 the scope and period of audit, provided that the petition shall 18.36 be signed by at least ten eligible voters for each 50 resident 19.1 pupils in average daily membership during the preceding school 19.2 year as shown on the records in the office of the commissioner 19.3 of children, families, and learning. In the case of school 19.4 districts, the petition shall be signed by at least ten eligible 19.5 voters. At the time it is circulated, every petition shall 19.6 contain a statement that the cost of the audit will be borne by 19.7 the county, city, or school district as provided by law. Thirty 19.8 days before the petition is delivered to the state auditor it 19.9 shall be presented to the appropriate city or school district 19.10 clerk and the county auditor. The county auditor shall 19.11 determine and certify whether the petition is signed by the 19.12 required number of registered voters or eligible voters as the 19.13 case may be. The certificate shall be conclusive evidence 19.14 thereof in any action or proceeding for the recovery of the 19.15 costs, charges, and expenses of any examination made pursuant to 19.16 the petition. 19.17 Sec. 7. Minnesota Statutes 2002, section 6.55, is amended 19.18 to read: 19.19 6.55 [EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF 19.20 GOVERNING BODY.] 19.21 The governing body of any city, town, county or school 19.22 district, by appropriate resolution may ask the state auditor to 19.23 examine the books, records, accounts and affairs of their 19.24 government, or of any organizational unit, activity, project, 19.25 enterprise, or fund thereof; and the state auditor shall examine 19.26 the same upon receiving, pursuant to said resolution, a written 19.27 request signed by a majority of the members of the governing 19.28 body; and the governing body of any public utility commission, 19.29 or of any public corporation having a body politic and 19.30 corporate, or of any instrumentality joint or several of any 19.31 city, town, county, or school district, may request an audit of 19.32 its books, records, accounts and affairs in the same manner; 19.33 provided that the scope of the examination may be limited by the 19.34 request, but such examination shall cover, at least, all cash 19.35 received and disbursed and the transactions relating thereto. 19.36 Such written request shall be presented to the clerk, or 20.1 recording officer of such city, town, county, school district, 20.2 public utility commission, public corporation, or 20.3 instrumentality, before being presented to the state auditor, 20.4 who shall determine whether the same is signed by a majority of 20.5 the members of such governing body and, if found to be so 20.6 signed, shall certify such fact, and the fact that such 20.7 resolution was passed, which certificate shall be conclusive 20.8 evidence thereof in any action or proceedings for the recovery 20.9 of the costs, charges and expenses of any examination made 20.10 pursuant to such request. Nothing contained in any of the laws 20.11 of the state relating to the state auditor, shall be so 20.12 construed as to prevent any county, city, town, or school 20.13 district from employing a certified public accountant to examine 20.14 its books, records, accounts, and affairs. For the purposes of 20.15 this section, the governing body of a town is the town board. 20.16 Sec. 8. Minnesota Statutes 2002, section 6.64, is amended 20.17 to read: 20.18 6.64 [COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC 20.19 ACCOUNTANT DEFINED.] 20.20 There shall be mutual cooperation between the state auditor 20.21 and public accountants in the performance of auditing, 20.22 accounting, and other related services for counties, cities, 20.23 towns, school districts, and other public corporations. For the 20.24 purposes of sections 6.64 to 6.71 the term public accountant 20.25 shall have the meaning ascribed to it in section 412.222. 20.26 Sec. 9. Minnesota Statutes 2002, section 6.65, is amended 20.27 to read: 20.28 6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.] 20.29 The state auditor shall prescribe minimum procedures and 20.30 the audit scope for auditing the books, records, accounts, and 20.31 affairs of counties and local governments in Minnesota. The 20.32 minimum scope for audits of all local governments must include 20.33 financial and legal compliance audits. Audits of all school 20.34 districts must include a determination of compliance with 20.35 uniform financial accounting and reporting standards. The state 20.36 auditor shall promulgate an audit guide for legal compliance 21.1 audits, in consultation with representatives of the state 21.2 auditor, the attorney general, towns, cities, counties, school 21.3 districts, and private sector public accountants. 21.4 Sec. 10. Minnesota Statutes 2002, section 6.66, is amended 21.5 to read: 21.6 6.66 [CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.] 21.7 Any public accountant may engage in the practice of 21.8 auditing the books, records, accounts, and affairs of counties, 21.9 cities, towns, school districts, and other public corporations 21.10 which are not otherwise required by law to be audited 21.11 exclusively by the state auditor. 21.12 Sec. 11. Minnesota Statutes 2002, section 6.67, is amended 21.13 to read: 21.14 6.67 [PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO 21.15 MISCONDUCT.] 21.16 Whenever a public accountant in the course of auditing the 21.17 books and affairs of a county, city, town, school district, or 21.18 other public corporations, shall discover evidence pointing to 21.19 nonfeasance, misfeasance, or malfeasance, on the part of an 21.20 officer or employee in the conduct of duties and affairs, the 21.21 public accountant shall promptly make a report of such discovery 21.22 to the state auditor and the county attorney of the county in 21.23 which the governmental unit is situated and the public 21.24 accountant shall also furnish a copy of the report of audit upon 21.25 completion to said officers. The county attorney shall act on 21.26 such report in the same manner as required by law for reports 21.27 made to the county attorney by the state auditor. 21.28 Sec. 12. Minnesota Statutes 2002, section 6.68, 21.29 subdivision 1, is amended to read: 21.30 Subdivision 1. [REQUEST TO GOVERNING BODY.] If in an audit 21.31 of a county, city, town, school district, or other public 21.32 corporation, a public accountant has need of the assistance of 21.33 the state auditor, the accountant may obtain such assistance by 21.34 requesting the governing body of the governmental unit being 21.35 examined to request the state auditor to perform such auditing 21.36 or investigative services, or both, as the matter and the public 22.1 interest require. 22.2 Sec. 13. Minnesota Statutes 2002, section 6.70, is amended 22.3 to read: 22.4 6.70 [ACCESS TO REPORTS.] 22.5 The state auditor and the public accountants shall have 22.6 reasonable access to each other's audit reports, working papers, 22.7 and audit programs concerning audits made by each of counties, 22.8 cities, towns, school districts, and other public corporations. 22.9 Sec. 14. Minnesota Statutes 2002, section 6.71, is amended 22.10 to read: 22.11 6.71 [SCOPE OF AUDITOR'S INVESTIGATION.] 22.12 Whenever the governing body of a county, city, town, or 22.13 school district shall have requested a public accountant to make 22.14 an audit of its books and affairs, and such audit is in progress 22.15 or has been completed, andfreeholdersregistered voters or 22.16 electors petition or the governing body requests or both the 22.17 state auditor to make an examination covering the same, or part 22.18 of the same, period, the state auditor may, in the public 22.19 interest, limit the scope of the examination to less than that 22.20 specified in section 6.54, but the scope shall cover, at least, 22.21 an investigation of those complaints which are within the state 22.22 auditor's powers and duties to investigate. 22.23 Sec. 15. Minnesota Statutes 2002, section 6.74, is amended 22.24 to read: 22.25 6.74 [INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.] 22.26 The state auditor, or a designated agent, shall collect 22.27 annually from all city, county, and other local units of 22.28 government, information as to the assessment of property, 22.29 collection of taxes, receipts from licenses and other sources, 22.30 the expenditure of public funds for all purposes, borrowing, 22.31 debts, principal and interest payments on debts, and such other 22.32 information as may be needful. The data shall be supplied 22.33 uponblanksforms prescribed by the state auditor, and all 22.34 public officials so called upon shall fill out properly and 22.35 return promptly allblanksforms so transmitted. The state 22.36 auditor or assistants, may examine local records in order to 23.1 complete or verify the information. 23.2 Sec. 16. [6.78] [BEST PRACTICES REVIEWS.] 23.3 The state auditor shall conduct best practices reviews that 23.4 examine the procedures and practices used to deliver local 23.5 government services, determine the methods of local government 23.6 service delivery, identify variations in cost and effectiveness, 23.7 and identify practices to save money or provide more effective 23.8 service delivery. The state auditor shall recommend to local 23.9 governments service delivery methods and practices to improve 23.10 the cost-effectiveness of services. The state auditor shall 23.11 determine the local government services to be reviewed in 23.12 consultation with representatives of the Association of 23.13 Minnesota Counties, the League of Minnesota Cities, the 23.14 Association of Metropolitan Municipalities, the Minnesota 23.15 Association of Townships, the Minnesota Municipal Utilities 23.16 Association, and the Minnesota Association of School 23.17 Administrators. 23.18 [EFFECTIVE DATE.] This section is effective July 1, 2004. 23.19 Sec. 17. Minnesota Statutes 2002, section 8.06, is amended 23.20 to read: 23.21 8.06 [ATTORNEY FOR STATE OFFICERS, BOARDS, OR COMMISSIONS; 23.22 EMPLOY COUNSEL.] 23.23 The attorney general shall act as the attorney for all 23.24 state officers and all boards or commissions created by law in 23.25 all matters pertaining to their official duties. When requested 23.26 by the attorney general, it shall be the duty of any county 23.27 attorney of the state to appear within the county and act as 23.28 attorney for any such board, commission, or officer in any court 23.29 of such county. The attorney general may, upon request in 23.30 writing, employ, and fix the compensation of, a special attorney 23.31 for any such board, commission, or officer when, in the attorney 23.32 general's judgment, the public welfare will be promoted 23.33 thereby. Such special attorney's fees or salary shall be paid 23.34 from the appropriation made for such board, commission, or 23.35 officer. Except as herein provided, no board, commission, or 23.36 officer shall hereafter employ any attorney at the expense of 24.1 the state. 24.2 Whenever the attorney general, the governor, and the chief 24.3 justice of the supreme court shall certify, in writing, filed in 24.4 the office of the secretary of state, that it is necessary, in 24.5 the proper conduct of the legal business of the state, either 24.6 civil or criminal, that the state employ additional counsel, the 24.7 attorney general shall thereupon be authorized to employ such 24.8 counsel and, with the governor and the chief justice, fix the 24.9 additional counsel's compensation. The governor, if in the 24.10 governor's opinion the public interest requires such action, may 24.11 employ counsel to act in any action or proceeding if the 24.12 attorney general is in any way interested adversely to the 24.13 state. Except as herein stated, no additional counsel shall be 24.14 employed and the legal business of the state shall be performed 24.15 exclusively by the attorney general and the attorney general's 24.16 assistants. 24.17 Sec. 18. Minnesota Statutes 2002, section 10A.01, 24.18 subdivision 21, is amended to read: 24.19 Subd. 21. [LOBBYIST.] (a) "Lobbyist" means an individual: 24.20 (1) engaged for pay or other consideration, or authorized24.21to spend money by another individual, association, political24.22subdivision, or public higher education system, who spends more24.23than five hours in any month or more than $250, not including24.24the individual's own travel expenses and membership dues,of 24.25 more than $3,000 from all sources in any year,for the purpose 24.26 of attempting to influence legislative or administrative action, 24.27 or the official action of a metropolitan governmental unit, by 24.28 communicating or urging others to communicate with public or 24.29 local officials; or 24.30 (2) who spends more than $250, not including the 24.31 individual's own traveling expenses and membership dues, in any 24.32 year for the purpose of attempting to influence legislative or 24.33 administrative action, or the official action of a metropolitan 24.34 governmental unit, by communicating or urging others to 24.35 communicate with public or local officials. 24.36 (b) "Lobbyist" does not include: 25.1 (1) a public official; 25.2 (2) an employee of the state, including an employee of any 25.3 of the public higher education systems; 25.4 (3) an elected local official; 25.5 (4) a nonelected local official or an employee of a 25.6 political subdivision acting in an official capacity, unless the 25.7 nonelected official or employee of a political subdivision 25.8 spends more than 50 hours in any month attempting to influence 25.9 legislative or administrative action, or the official action of 25.10 a metropolitan governmental unit other than the political 25.11 subdivision employing the official or employee, by communicating 25.12 or urging others to communicate with public or local officials, 25.13 including time spent monitoring legislative or administrative 25.14 action, or the official action of a metropolitan governmental 25.15 unit, and related research, analysis, and compilation and 25.16 dissemination of information relating to legislative or 25.17 administrative policy in this state, or to the policies of 25.18 metropolitan governmental units; 25.19 (5) a party or the party's representative appearing in a 25.20 proceeding before a state board, commission, or agency of the 25.21 executive branch unless the board, commission, or agency is 25.22 taking administrative action; 25.23 (6) an individual while engaged in selling goods or 25.24 services to be paid for by public funds; 25.25 (7) a news medium or its employees or agents while engaged 25.26 in the publishing or broadcasting of news items, editorial 25.27 comments, or paid advertisements which directly or indirectly 25.28 urge official action; 25.29 (8) a paid expert witness whose testimony is requested by 25.30 the body before which the witness is appearing, but only to the 25.31 extent of preparing or delivering testimony; or 25.32 (9) a party or the party's representative appearing to 25.33 present a claim to the legislature and communicating to 25.34 legislators only by the filing of a claim form and supporting 25.35 documents and by appearing at public hearings on the claim. 25.36 (c) An individual who volunteers personal time to work 26.1 without pay or other consideration on a lobbying campaign, and 26.2 who does not spend more than the limit in paragraph (a), clause 26.3 (2), need not register as a lobbyist. 26.4 (d) An individual who provides administrative support to a 26.5 lobbyist and whose salary and administrative expenses 26.6 attributable to lobbying activities are reported as lobbying 26.7 expenses by the lobbyist, but who does not communicate or urge 26.8 others to communicate with public or local officials, need not 26.9 register as a lobbyist. 26.10 Sec. 19. Minnesota Statutes 2002, section 10A.02, is 26.11 amended by adding a subdivision to read: 26.12 Subd. 15. [DISPOSITION OF FEES.] The board must deposit 26.13 all fees collected under this chapter into the general fund in 26.14 the state treasury. 26.15 Sec. 20. Minnesota Statutes 2002, section 10A.025, 26.16 subdivision 2, is amended to read: 26.17 Subd. 2. [PENALTY FOR FALSE STATEMENTS.] A report or 26.18 statement required to be filed under this chapter must be signed 26.19 and certified as true by the individual required to file the 26.20 report. The signature may be an electronic signature consisting 26.21 of a password assigned by the board. An individual who signs 26.22 and certifies to be true a report or statement knowing it 26.23 contains false information or who knowingly omits required 26.24 information is guilty of a gross misdemeanor and subject to a 26.25 civil penalty imposed by the board of up to $3,000. 26.26 Sec. 21. Minnesota Statutes 2002, section 10A.03, 26.27 subdivision 1, is amended to read: 26.28 Subdivision 1. [FIRST REGISTRATION.] A lobbyist must file 26.29 a registration form with the board within five days after 26.30 becoming a lobbyist or being engaged by a new individual, 26.31 association, political subdivision, or public higher education 26.32 system. 26.33 Sec. 22. Minnesota Statutes 2002, section 10A.04, 26.34 subdivision 1, is amended to read: 26.35 Subdivision 1. [REPORTS REQUIRED.] A lobbyist must file 26.36 reports of the lobbyist's activities with the board as long as 27.1 the lobbyist continues to lobby. The report may be filed 27.2 electronically. A lobbyist may file a termination statement at 27.3 any time after ceasing to lobby. 27.4 [EFFECTIVE DATE.] This section is effective January 1, 2005. 27.5 Sec. 23. Minnesota Statutes 2002, section 10A.04, 27.6 subdivision 2, is amended to read: 27.7 Subd. 2. [TIME OF REPORTS.] Each report must cover the 27.8 time from the last day of the period covered by the last report 27.9 to 15 days before the current filing date. The reports must be 27.10 filed with the board by the following dates: 27.11 (1) January 15; and 27.12 (2)April 15; and27.13(3) July 15June 15. 27.14 Sec. 24. Minnesota Statutes 2002, section 10A.04, is 27.15 amended by adding a subdivision to read: 27.16 Subd. 2a. [FEE.] On January 15 each year, each lobbyist 27.17 must pay a fee of $50 for each individual, association, 27.18 political subdivision, or public higher education system on 27.19 whose behalf the lobbyist is registered, except as otherwise 27.20 provided in this subdivision. The fee must be no more than 27.21 necessary to cover the cost of administering sections 10A.03 to 27.22 10A.06. The amount of the fee is subject to change each 27.23 biennium in accordance with the budget request made by the board. 27.24 This subdivision expires June 30, 2004. 27.25 Sec. 25. Minnesota Statutes 2002, section 10A.04, 27.26 subdivision 4, is amended to read: 27.27 Subd. 4. [CONTENT.] (a) A report under this section must 27.28 include information the board requires from the registration 27.29 form and the information required by this subdivision for the 27.30 reporting period. 27.31 (b) A lobbyist must report the lobbyist's total 27.32 disbursements on lobbying, separately listing lobbying to 27.33 influence legislative action, lobbying to influence 27.34 administrative action, and lobbying to influence the official 27.35 actions of a metropolitan governmental unit, and a breakdown of 27.36 disbursements for each of those kinds of lobbying into 28.1 categories specified by the board, including but not limited to 28.2 the cost of publication and distribution of each publication 28.3 used in lobbying; other printing; media, including the cost of 28.4 production; postage; travel; fees, including allowances; 28.5 entertainment; telephone and telegraph; and other expenses. 28.6 (c) A lobbyist must report the amount and nature of each 28.7 gift, item, or benefit, excluding contributions to a candidate, 28.8 equal in value to $5 or more, given or paid to any official, as 28.9 defined in section 10A.071, subdivision 1, by the lobbyist or an 28.10 employer or employee of the lobbyist. The list must include the 28.11 name and address of each official to whom the gift, item, or 28.12 benefit was given or paid and the date it was given or paid. 28.13 (d) A lobbyist must report each original source of money in 28.14 excess of $500 in any year used for the purpose of lobbying to 28.15 influence legislative action, administrative action, or the 28.16 official action of a metropolitan governmental unit. The list 28.17 must include the name, address, and employer, or, if 28.18 self-employed, the occupation and principal place of business, 28.19 of each payer of money in excess of $500. 28.20 (e) On the report dueAprilJune 15, the lobbyist must 28.21 provide a general description of the subjects lobbied in the 28.22 previous 12 months. 28.23 Sec. 26. Minnesota Statutes 2002, section 10A.04, 28.24 subdivision 5, is amended to read: 28.25 Subd. 5. [LATE FILING.] The board must send a notice by 28.26 certified mail to any lobbyist or principal who fails after 28.27 seven days after a filing date imposed by this section to file a 28.28 report or statement or to pay a fee required by this section. 28.29 If a lobbyist or principal fails to file a report or pay a fee 28.30 within ten business days after the notice was sent, the board 28.31 may impose a late filing fee of $5 per day, not to exceed $100, 28.32 commencing with the 11th day after the notice was sent. The 28.33 board must send an additional notice by certified mail to any 28.34 lobbyist or principal who fails to file a report or pay a fee 28.35 within 14 days after the first notice was sent by the board that 28.36 the lobbyist or principal may be subject to a civil penalty for 29.1 failure to file the report or pay the fee. A lobbyist or 29.2 principal who fails to file a report or statement or pay a fee 29.3 within seven days after the second notice was sent by the board 29.4 is subject to a civil penalty imposed by the board of up to 29.5 $1,000. 29.6 Sec. 27. Minnesota Statutes 2002, section 10A.04, 29.7 subdivision 6, is amended to read: 29.8 Subd. 6. [PRINCIPAL REPORTS.] (a) A principal must report 29.9 to the board as required in this subdivision by March 15 for the 29.10 preceding calendar year. Along with the report, the principal 29.11 must pay a fee of $50, except as otherwise provided in this 29.12 subdivision. The fee must be no more than necessary to cover 29.13 the cost of administering sections 10A.03 to 10A.06. The amount 29.14 of the fee is subject to change each biennium in accordance with 29.15 the budget request made by the board. 29.16 (b) The principal must report the total amount, rounded to 29.17 the nearest $20,000, spent by the principal during the preceding 29.18 calendar year to influence legislative action, administrative 29.19 action, and the official action of metropolitan governmental 29.20 units. 29.21 (c) The principal must report under this subdivision a 29.22 total amount that includes: 29.23 (1) all direct payments by the principal to lobbyists in 29.24 this state; 29.25 (2) all expenditures for advertising, mailing, research, 29.26 analysis, compilation and dissemination of information, and 29.27 public relations campaigns related to legislative action, 29.28 administrative action, or the official action of metropolitan 29.29 governmental units in this state; and 29.30 (3) all salaries and administrative expenses attributable 29.31 to activities of the principal relating to efforts to influence 29.32 legislative action, administrative action, or the official 29.33 action of metropolitan governmental units in this state. 29.34 Sec. 28. Minnesota Statutes 2002, section 10A.34, 29.35 subdivision 1a, is amended to read: 29.36 Subd. 1a. [RECOVERINGLATEFEES AND PENALTIES.] The board 30.1 may bring an action in the district court in Ramsey county to 30.2 recover a fee, late filing fee, or penalty imposed under this 30.3 chapter. Money recovered must be deposited in the general fund 30.4 of the state. 30.5 Sec. 29. Minnesota Statutes 2002, section 14.091, is 30.6 amended to read: 30.7 14.091 [PETITION; UNIT OF LOCAL GOVERNMENT.] 30.8 (a) The elected governing body of a statutory or home rule 30.9 city, a county, or a sanitary district may petition for 30.10 amendment or repeal of a rule or a specified portion of a rule. 30.11 The petition must be adopted by resolution of the elected 30.12 governing body and must be submitted in writing to the agency 30.13 and to the office of administrative hearings, must specify what 30.14 amendment or repeal is requested, and must demonstrate that one 30.15 of the following has become available since the adoption of the 30.16 rule in question: 30.17 (1) significant new evidence relating to the need for or 30.18 reasonableness of the rule; or 30.19 (2) less costly or intrusive methods of achieving the 30.20 purpose of the rule. 30.21 (b) Within 30 days of receiving a petition, an agency shall 30.22 reply to the petitioner in writing stating either that the 30.23 agency, within 90 days of the date of the reply, will give 30.24 notice under section 14.389 of intent to adopt the amendment or 30.25 repeal requested by the petitioner or that the agency does not 30.26 intend to amend or repeal the rule and has requested the office 30.27 of administrative hearings to review the petition. If the 30.28 agency intends to amend or repeal the rule in the manner 30.29 requested by the petitioner, the agency must use the process 30.30 under section 14.389 to amend or repeal the rule. Section 30.31 14.389, subdivision 5, applies. 30.32 (c) Upon receipt of an agency request under paragraph (b), 30.33 the chief administrative law judge shall assign an 30.34 administrative law judge, who was not involved when the rule or 30.35 portion of a rule that is the subject of the petition was 30.36 adopted or amended, to review the petition to determine whether 31.1 the petitioner has complied with the requirements of paragraph 31.2 (a). The petitioner, the agency, or any interested person, at 31.3 the option of any of them, may submit written material for the 31.4 assigned administrative law judge's consideration within ten 31.5 days of the chief administrative law judge's receipt of the 31.6 agency request. The administrative law judge shall dismiss the 31.7 petition if the judge determines that: 31.8 (1) the petitioner has not complied with the requirements 31.9 of paragraph (a); 31.10 (2) the rule is required to comply with a court order; or 31.11 (3) the rule is required by federal law or is required to 31.12 maintain authority to administer a federal program. 31.13 (d) If the administrative law judge assigned by the chief 31.14 administrative law judge determines that the petitioner has 31.15 complied with the requirements of paragraph (a), the 31.16 administrative law judge shall conduct a hearing and issue a 31.17 decision on the petition within 120 days of its receipt by the 31.18 office of administrative hearings. The agency shall give notice 31.19 of the hearing in the same manner required for notice of a 31.20 proposed rule hearing under section 14.14, subdivision 1a. At 31.21 the public hearing, the agency shall make an affirmative 31.22 presentation of facts establishing the need for and 31.23 reasonableness of the rule or portion of the rule in question. 31.24 If the administrative law judge determines that the agency has 31.25 not established the continued need for and reasonableness of the 31.26 rule or portion of the rule, the rule or portion of the rule 31.27 does not have the force of law, effective 90 days after the 31.28 administrative law judge's decision, unless the agency has 31.29 before then published notice in the State Register of intent to 31.30 amend or repeal the rule in accordance with paragraph (e). 31.31 (e) The agency may amend or repeal the rule in the manner 31.32 requested by the petitioner, or in another manner that the 31.33 administrative law judge has determined is needed and reasonable. 31.34 Amendments under this paragraph may be adopted under the 31.35 expedited process in section 14.389. Section 14.389, 31.36 subdivision 5, applies to this adoption. If the agency uses the 32.1 expedited process and no public hearing is required, the agency 32.2 must complete the amendment or repeal of the rule within 90 days 32.3 of the administrative law judge's decision under paragraph (d). 32.4 If a public hearing is required, the agency must complete the 32.5 amendment or repeal of the rule within 180 days of the 32.6 administrative law judge's decision under paragraph (d). A rule 32.7 or portion of a rule that is not amended or repealed in the time 32.8 prescribed by this paragraph does not have the force of law upon 32.9 expiration of the deadline. A rule that is amended within the 32.10 time prescribed in this paragraph has the force of law, as 32.11 amended. 32.12 (f) The chief administrative law judge shall report the 32.13 decision under paragraph (d) within 30 days to the chairs of the 32.14 house and senate committees having jurisdiction over 32.15 governmental operations and the chairs of the house and senate 32.16 committees having jurisdiction over the agency whose rule or 32.17 portion of a rule was the subject of the petition. 32.18 (g) The chief administrative law judge shall assess a 32.19 petitioner half the cost of processing a petition and conducting 32.20 a public hearing under paragraph (d). 32.21(h) This section expires July 31, 2006.32.22 Sec. 30. Minnesota Statutes 2002, section 14.48, is 32.23 amended by adding a subdivision to read: 32.24 Subd. 4. [MANDATORY RETIREMENT.] An administrative law 32.25 judge and compensation judge must retire upon attaining age 70. 32.26 The chief administrative law judge may appoint a retired 32.27 administrative law judge or compensation judge to hear any 32.28 proceeding that is properly assignable to an administrative law 32.29 judge or compensation judge. When a retired administrative law 32.30 judge or compensation judge undertakes this service, the retired 32.31 judge shall receive pay and expenses in the amount payable to 32.32 temporary administrative law judges or compensation judges 32.33 serving under section 14.49. 32.34 [EFFECTIVE DATE.] This section is effective June 30, 2003. 32.35 An administrative law judge or compensation judge who has 32.36 attained the age of 70 on or before that date must retire by 33.1 June 30, 2003. 33.2 Sec. 31. Minnesota Statutes 2002, section 16A.102, 33.3 subdivision 1, is amended to read: 33.4 Subdivision 1. [GOVERNOR'S RECOMMENDATION.] By thefourth33.5Tuesday in January of each odd-numbered yeardate specified in 33.6 section 16A.11, subdivision 1, for submission of parts one and 33.7 two of the governor's budget, the governor shall submit to the 33.8 legislature a recommended revenue target for the next two 33.9 bienniums. The recommended revenue target must specify: 33.10 (1) the maximum share of Minnesota personal income to be 33.11 collected in taxes and other revenues to pay for state and local 33.12 government services; 33.13 (2) the division of the share between state and local 33.14 government revenues; and 33.15 (3) the mix and rates of income, sales, and other state and 33.16 local taxes including property taxes and other revenues. 33.17 The recommendations must be based on the November forecast 33.18 prepared under section 16A.103. 33.19 Sec. 32. Minnesota Statutes 2002, section 16A.11, 33.20 subdivision 3, is amended to read: 33.21 Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the 33.22 budget, the detailed budget estimates both of expenditures and 33.23 revenues, must contain any statements on the financial plan 33.24 which the governor believes desirable or which may be required 33.25 by the legislature. The detailed estimates shall include the 33.26 governor's budget arranged in tabular form. 33.27 (b) Tables listing expenditures for the next biennium must 33.28 show the appropriation base for each year as well as the 33.29 governor's total recommendation for that year for each 33.30 expenditure line. The appropriation base is the amount 33.31 appropriated for the second year of the current biennium, 33.32 adjusted in accordance with any provisions of law that specify 33.33 changes to the base. 33.34 (c) The detailed estimates must include a separate line 33.35 listingthe total number of professional or technical service33.36contracts andthe total cost ofthoseprofessional and technical 34.1 service contracts for the prior biennium and the 34.2 projectednumber of professional or technical service contracts34.3and the projectedcosts of those contracts for the current and 34.4 upcoming biennium. They must also include a summary of the 34.5 personnel employed by the agency, reflected as full-time 34.6 equivalent positions, and the number of professional or34.7technical service consultants for the current biennium. 34.8(c)(d) The detailed estimates for internal service funds 34.9 must include the number of full-time equivalents by program; 34.10 detail on any loans from the general fund, including dollar 34.11 amounts by program; proposed investments in technology or 34.12 equipment of $100,000 or more; an explanation of any operating 34.13 losses or increases in retained earnings; and a history of the 34.14 rates that have been charged, with an explanation of any rate 34.15 changes and the impact of the rate changes on affected agencies. 34.16 Sec. 33. Minnesota Statutes 2002, section 16A.1285, 34.17 subdivision 3, is amended to read: 34.18 Subd. 3. [DUTIES OF COMMISSIONER OF FINANCE.] The 34.19 commissioner of finance shall classify, monitor, analyze, and 34.20 report all departmental earnings that fall within the definition 34.21 established in subdivision 1. Specifically, the commissioner 34.22 shall: 34.23 (1) establish and maintain a classification system that 34.24 clearly defines and distinguishes categories and types of 34.25 departmental earnings and takes into account the purpose of the 34.26 various earnings types and the extent to which various earnings 34.27 types serve a public or private interest; 34.28 (2) prepare a biennial report that documents collection 34.29 costs, purposes, and yields of all departmental earnings, the 34.30 report to be submitted to the legislature on or before the 34.31 fourth Tuesday in January in each odd-numbered year and to 34.32 include estimated data for the year in which the report is 34.33 prepared, actual data for the two years immediately before, and 34.34 estimates for the two years immediately following; and 34.35 (3) prepare and maintain a detailed directory of all 34.36 departmental earnings. 35.1 In a year following the election of a governor who had not been 35.2 governor the previous year, the report required by clause (2) 35.3 must be submitted by the third Tuesday in February. 35.4 Sec. 34. Minnesota Statutes 2002, section 16A.151, 35.5 subdivision 5, is amended to read: 35.6 Subd. 5. [EXPIRATION.] This section expires June 30, 35.720042006. 35.8 Sec. 35. Minnesota Statutes 2002, section 16A.17, is 35.9 amended by adding a subdivision to read: 35.10 Subd. 10. [DIRECT DEPOSIT.] Notwithstanding section 35.11 177.23, the commissioner may require direct deposit for all 35.12 state employees that are being paid by the state payroll system. 35.13 Sec. 36. Minnesota Statutes 2002, section 16A.40, is 35.14 amended to read: 35.15 16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 35.16 Money must not be paid out of the state treasury except 35.17 upon the warrant of the commissioner or an electronic fund 35.18 transfer approved by the commissioner. Warrants must be drawn 35.19 on printed blanks that are in numerical order. The commissioner 35.20 shall enter, in numerical order in a warrant register, the 35.21 number, amount, date, and payee for every warrant issued. 35.22 The commissioner may require payeesreceiving more than ten35.23payments or $10,000 per year mustto supplythe commissioner35.24withtheir bank routing information to enable the payments to be 35.25 made through an electronic fund transfer. 35.26 Sec. 37. Minnesota Statutes 2002, section 16A.501, is 35.27 amended to read: 35.28 16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.] 35.29 The commissioner of finance must report annually to the 35.30 legislature on the degree to which entities receiving 35.31 appropriations for capital projects in previous omnibus capital 35.32 improvement acts have encumbered or expended that money. The 35.33 report must be submitted to the chairs of the house of 35.34 representatives ways and means committee and the senate finance 35.35 committee byFebruaryJanuary 1 of each year. 35.36 Sec. 38. Minnesota Statutes 2002, section 16A.642, 36.1 subdivision 1, is amended to read: 36.2 Subdivision 1. [REPORTS.] (a) The commissioner of finance 36.3 shall report to the chairs of the senate committee on finance 36.4 and the house of representatives committees on ways and means 36.5 and on capital investment byFebruaryJanuary 1 of each 36.6 odd-numbered year on the following: 36.7 (1) all laws authorizing the issuance of state bonds or 36.8 appropriating general fund money for state or local government 36.9 capital investment projects enacted more than four years before 36.10FebruaryJanuary 1 of that odd-numbered year; the projects 36.11 authorized to be acquired and constructed for which less than 36.12 100 percent of the authorized total cost has been expended, 36.13 encumbered, or otherwise obligated; the cost of contracts to be 36.14 let in accordance with existing plans and specifications shall 36.15 be considered expended for this report; and the amount of 36.16 general fund money appropriated but not spent or otherwise 36.17 obligated, and the amount of bonds not issued and bond proceeds 36.18 held but not previously expended, encumbered, or otherwise 36.19 obligated for these projects; and 36.20 (2) all laws authorizing the issuance of state bonds or 36.21 appropriating general fund money for state or local government 36.22 capital programs or projects other than those described in 36.23 clause (1), enacted more than four years beforeFebruaryJanuary 36.24 1 of that odd-numbered year; and the amount of general fund 36.25 money appropriated but not spent or otherwise obligated, and the 36.26 amount of bonds not issued and bond proceeds held but not 36.27 previously expended, encumbered, or otherwise obligated for 36.28 these programs and projects. 36.29 (b) The commissioner shall also report on general fund 36.30 appropriations for capital projects, bond authorizations or bond 36.31 proceed balances that may be canceled because projects have been 36.32 canceled, completed, or otherwise concluded, or because the 36.33 purposes for which the money was appropriated or bonds were 36.34 authorized or issued have been canceled, completed, or otherwise 36.35 concluded. The general fund appropriations, bond authorizations 36.36 or bond proceed balances that are unencumbered or otherwise not 37.1 obligated that are reported by the commissioner under this 37.2 subdivision are canceled, effective July 1 of the year of the 37.3 report, unless specifically reauthorized by act of the 37.4 legislature. 37.5 Sec. 39. Minnesota Statutes 2002, section 16B.24, 37.6 subdivision 5, is amended to read: 37.7 Subd. 5. [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 37.8 The commissioner may rent out state property, real or personal, 37.9 that is not needed for public use, if the rental is not 37.10 otherwise provided for or prohibited by law. The property may 37.11 not be rented out for more than five years at a time without the 37.12 approval of the state executive council and may never be rented 37.13 out for more than 25 years. A rental agreement may provide that 37.14 the state will reimburse a tenant for a portion of capital 37.15 improvements that the tenant makes to state real property if the 37.16 state does not permit the tenant to renew the lease at the end 37.17 of the rental agreement. 37.18 (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 37.19 trust fund lands, other state lands under the jurisdiction of 37.20 the department of natural resources, lands forfeited for 37.21 delinquent taxes, lands acquired under section 298.22, or lands 37.22 acquired under section 41.56 which are under the jurisdiction of 37.23 the department of agriculture. 37.24 (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 37.25 Chapel, located within the boundaries of Fort Snelling State 37.26 Park, is available for use only on payment of a rental fee. The 37.27 commissioner shall establish rental fees for both public and 37.28 private use. The rental fee for private use by an organization 37.29 or individual must reflect the reasonable value of equivalent 37.30 rental space. Rental fees collected under this section must be 37.31 deposited in the general fund. 37.32 (d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 37.33 shall establish rental rates for all living accommodations 37.34 provided by the state for its employees. Money collected as 37.35 rent by state agencies pursuant to this paragraph must be 37.36 deposited in the state treasury and credited to the general fund. 38.1 (e) [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 38.2 AGENCIES.] The commissioner may lease portions of the 38.3 state-owned buildings in the capitol complex, the capitol square 38.4 building, the health building, the Duluth government center, and 38.5 the building at 1246 University Avenue, St. Paul, Minnesota, to 38.6 state agencies and the court administrator on behalf of the 38.7 judicial branch of state government and charge rent on the basis 38.8 of space occupied. Notwithstanding any law to the contrary, all 38.9 money collected as rent pursuant to the terms of this section 38.10 shall be deposited in the state treasury. Money collected as 38.11 rent to recover the bond interest costs of a building funded 38.12 from the state bond proceeds fund shall be credited to the 38.13 general fund. Money collected as rent to recover the 38.14 depreciation costs of a building funded from the state bond 38.15 proceeds fund and money collected as rent to recover capital 38.16 expenditures from capital asset preservation and replacement 38.17 appropriations and statewide building access appropriations 38.18 shall be credited to a segregated account in a special revenue 38.19 fund. Fifty percent of the money credited to the account each 38.20 fiscal year must be transferred to the general fund. The 38.21 remaining money in the account is appropriated to the 38.22 commissioner to be expended for asset preservation projects as 38.23 determined by the commissioner. Money collected as rent to 38.24 recover the depreciation and interest costs of a building built 38.25 with other state dedicated funds shall be credited to the 38.26 dedicated fund which funded the original acquisition or 38.27 construction. All other money received shall be credited to the 38.28 general services revolving fund. 38.29 Sec. 40. Minnesota Statutes 2002, section 16B.35, 38.30 subdivision 1, is amended to read: 38.31 Subdivision 1. [PERCENT OF APPROPRIATIONS FOR ART.] An 38.32 appropriation for the construction or alteration of any state 38.33 building may contain an amount not to exceed the lesser of 38.34 $100,000 or one percent of the total appropriation for the 38.35 building for the acquisition of works of art, excluding 38.36 landscaping, which may be an integral part of the building or 39.1 its grounds, attached to the building or grounds or capable of 39.2 being displayed in other state buildings. If the appropriation 39.3 for works of art is limited by the $100,000 cap in this section, 39.4 the appropriation for the construction or alteration of the 39.5 building must be reduced to reflect the reduced amount that will 39.6 be spent on works of art. Money used for this purpose is 39.7 available only for the acquisition of works of art to be 39.8 exhibited in areas of a building or its grounds accessible, on a 39.9 regular basis, to members of the public. No more than ten 39.10 percent of the total amount available each fiscal year under 39.11 this subdivision may be used for administrative expenses, either 39.12 by the commissioner of administration or by any other entity to 39.13 whom the commissioner delegates administrative authority. For 39.14 the purposes of this section "state building" means a building 39.15 the construction or alteration of which is paid for wholly or in 39.16 part by the state. 39.17 Sec. 41. Minnesota Statutes 2002, section 16B.465, 39.18 subdivision 1a, is amended to read: 39.19 Subd. 1a. [CREATION.] Except as provided in subdivision 4, 39.20 the commissioner, through the state information infrastructure, 39.21 shall arrange for the provision of voice, data, video, and other 39.22 telecommunications transmission services to state agencies. The 39.23 state information infrastructure may also serve educational 39.24 institutions, including public schools as defined in section 39.25 120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 39.26 religious organization schools that provide instruction in 39.27 compliance with sections 120A.22, 120A.24, and 120A.41, and 39.28 private colleges; public corporations; Indian tribal 39.29 governments;andstate political subdivisions; and public 39.30 noncommercial educational television broadcast stations as 39.31 defined in section 129D.12, subdivision 2. It is not a 39.32 telephone company for purposes of chapter 237. The commissioner 39.33 may purchase, own, or lease any telecommunications network 39.34 facilities or equipment after first seeking bids or proposals 39.35 and having determined that the private sector cannot, will not, 39.36 or is unable to provide these services, facilities, or equipment 40.1 as bid or proposed in a reasonable or timely fashion consistent 40.2 with policy set forth in this section. The commissioner shall 40.3 not resell or sublease any services or facilities to nonpublic 40.4 entities except to serve private schools and colleges. The 40.5 commissioner has the responsibility for planning, development, 40.6 and operations of the state information infrastructure in order 40.7 to provide cost-effective telecommunications transmission 40.8 services to state information infrastructure users consistent 40.9 with the policy set forth in this section. 40.10 Sec. 42. Minnesota Statutes 2002, section 16B.465, 40.11 subdivision 7, is amended to read: 40.12 Subd. 7. [EXEMPTION.] The system is exempt from the 40.13 five-year limitation on contracts set by sections 16C.05, 40.14 subdivision 2, paragraph(a), clause (5)(b), 16C.08, 40.15 subdivision 3, clause(7)(5), and 16C.09, clause (6). 40.16 Sec. 43. Minnesota Statutes 2002, section 16B.47, is 40.17 amended to read: 40.18 16B.47 [MICROGRAPHICS.] 40.19 The commissionershallmay provide micrographics services 40.20 and products to meet agency needs. Within available resources, 40.21 the commissioner may also provide micrographic services to 40.22 political subdivisions. Agency plans and programs for 40.23 micrographics must be submitted to and receive the approval of 40.24 the commissioner prior to implementation. Upon the 40.25 commissioner's approval, subsidiary or independent microfilm 40.26 operations may be implemented in other state agencies. The 40.27 commissioner may direct that copies of official state documents 40.28 be distributed to official state depositories on microfilm. 40.29 [EFFECTIVE DATE.] This section is effective the day 40.30 following final enactment. 40.31 Sec. 44. Minnesota Statutes 2002, section 16B.48, 40.32 subdivision 2, is amended to read: 40.33 Subd. 2. [PURPOSE OF FUNDS.] Money in the state treasury 40.34 credited to the general services revolving fund and money that 40.35 is deposited in the fund is appropriated annually to the 40.36 commissioner for the following purposes: 41.1 (1) to operate a central store and equipment service; 41.2 (2)to operate a central duplication and printing service;41.3(3)to operate the central mailing service, including 41.4 purchasing postage and related items and refunding postage 41.5 deposits; 41.6(4)(3) to operate a documents service as prescribed by 41.7 section 16B.51; 41.8(5)(4) to provide services for the maintenance, operation, 41.9 and upkeep of buildings and grounds managed by the commissioner 41.10 of administration; 41.11(6)(5) to operate a materials handling service, including 41.12 interagency mail and product delivery, solid waste removal, 41.13 courier service, equipment rental, and vehicle and equipment 41.14 maintenance; 41.15(7)(6) to provide analytical, statistical, and 41.16 organizational development services to state agencies, local 41.17 units of government, metropolitan and regional agencies, and 41.18 school districts; 41.19(8)(7) to operate a records center and provide 41.20 micrographics products and services; and 41.21(9)(8) to perform services for any other agency. Money 41.22 may be expended for this purpose only when directed by the 41.23 governor. The agency receiving the services shall reimburse the 41.24 fund for their cost, and the commissioner shall make the 41.25 appropriate transfers when requested. The term "services" as 41.26 used in this clause means compensation paid officers and 41.27 employees of the state government; supplies, materials, 41.28 equipment, and other articles and things used by or furnished to 41.29 an agency; and utility services and other services for the 41.30 maintenance, operation, and upkeep of buildings and offices of 41.31 the state government. 41.32 [EFFECTIVE DATE.] This section is effective the day 41.33 following final enactment. 41.34 Sec. 45. Minnesota Statutes 2002, section 16C.02, 41.35 subdivision 6, is amended to read: 41.36 Subd. 6. [CONTRACT.] "Contract" means any written 42.1 instrument or electronic document containing the elements of 42.2 offer, acceptance, and consideration to which an agency is a 42.3 party, including an amendment to or extension of a contract. 42.4 Sec. 46. Minnesota Statutes 2002, section 16C.03, is 42.5 amended by adding a subdivision to read: 42.6 Subd. 17. [CONTRACT EXTENSION.] The term of a contract may 42.7 be extended for a time longer than the time specified in this 42.8 chapter, up to a total term of ten years, if the commissioner, 42.9 in consultation with the commissioner of finance, determines 42.10 that the contractor will incur upfront costs under the contract 42.11 that cannot be recovered within a two-year period and that will 42.12 provide cost savings to the state and that these costs will be 42.13 amortized over the life of the contract. 42.14 Sec. 47. [16C.045] [REPORTING OF VIOLATIONS.] 42.15 A state employee who discovers evidence of violation of 42.16 laws or rules governing state contracts is encouraged to report 42.17 the violation or suspected violation to the employee's 42.18 supervisor, the commissioner or the commissioner's designee, or 42.19 the legislative auditor. The legislative auditor must report to 42.20 the legislative audit commission if there are multiple 42.21 complaints about the same agency. The auditor's report to the 42.22 legislative audit commission under this section must disclose 42.23 only the number and type of violations alleged. An employee 42.24 making a good faith report under this section is covered by 42.25 section 181.932, prohibiting the employer from discriminating 42.26 against the employee. 42.27 Sec. 48. Minnesota Statutes 2002, section 16C.05, 42.28 subdivision 2, is amended to read: 42.29 Subd. 2. [CREATION AND VALIDITY OF CONTRACTS.] (a) A 42.30 contract is not valid and the state is not bound by it and no 42.31 agency, without the prior written approval of the commissioner 42.32 granted pursuant to subdivision 2a, may authorize work to begin 42.33 on it unless: 42.34 (1) it has first been executed by the head of the agency or 42.35 a delegate who is a party to the contract; 42.36 (2) it has been approved by the commissioner; and 43.1 (3)it has been approved by the attorney general or a43.2delegate as to form and execution;43.3(4)the accounting system shows anobligation in an expense43.4budget orencumbrance for the amount of the contract liability;43.5and. 43.6(5)(b) The combined contract and amendmentsshallmust not 43.7 exceed five years without specific, written approval by the 43.8 commissioner according to established policy, procedures, and 43.9 standards, or unless otherwise provided for by law. The term of 43.10 the original contract must not exceed two years unless the 43.11 commissioner determines that a longer duration is in the best 43.12 interest of the state. 43.13(b)(c) Grants, interagency agreements, purchase orders, 43.14 work orders, and annual plans need not, in the discretion of the 43.15 commissioner and attorney general, require the signature of the 43.16 commissioner and/or the attorney general. A signature is not 43.17 required for work orders and amendments to work orders related 43.18 to department of transportation contracts. Bond purchase 43.19 agreements by the Minnesota public facilities authority do not 43.20 require the approval of the commissioner. 43.21(c)(d) Amendments to contracts must entail tasks that are 43.22 substantially similar to those in the original contract or 43.23 involve tasks that are so closely related to the original 43.24 contract that it would be impracticable for a different 43.25 contractor to perform the work. The commissioner or an agency 43.26 official to whom the commissioner has delegated contracting 43.27 authority under section 16C.03, subdivision 16, must determine 43.28 that an amendment would serve the interest of the state better 43.29 than a new contract and would cost no more. 43.30 (e) A fully executed copy of every contract, amendments to 43.31 the contract, and performance evaluations relating to the 43.32 contract must be kept on file at the contracting agency for a 43.33 time equal to that specified for contract vendors and other 43.34 parties in subdivision 5. 43.35 (f) The attorney general must periodically review and 43.36 evaluate a sample of state agency contracts to ensure compliance 44.1 with laws. 44.2 Sec. 49. Minnesota Statutes 2002, section 16C.05, is 44.3 amended by adding a subdivision to read: 44.4 Subd. 2a. [EMERGENCY AUTHORIZATION.] The commissioner may 44.5 grant an agency approval to authorize work to begin on a 44.6 contract prior to the full execution of the contract in the 44.7 event of an emergency as defined in section 16C.10, subdivision 44.8 2. 44.9 Sec. 50. Minnesota Statutes 2002, section 16C.06, 44.10 subdivision 1, is amended to read: 44.11 Subdivision 1. [PUBLICATION REQUIREMENTS.] Notices of 44.12 solicitations for acquisitions estimated to be more than 44.13 $25,000, or $100,000 in the case of a department of 44.14 transportation acquisition, must be publicized in a manner 44.15 designated by the commissioner. To the extent practical, this 44.16 must include posting on a state Web site. 44.17 Sec. 51. Minnesota Statutes 2002, section 16C.08, 44.18 subdivision 2, is amended to read: 44.19 Subd. 2. [DUTIES OF CONTRACTING AGENCY.] (a) Before an 44.20 agency may seek approval of a professional or technical services 44.21 contract valued in excess of $5,000, it mustcertify to the44.22commissioner thatprovide the following: 44.23 (1) a description of how the proposed contract or amendment 44.24 is necessary and reasonable to advance the statutory mission of 44.25 the agency; 44.26 (2) a description of the agency's plan to notify firms or 44.27 individuals who may be available to perform the services called 44.28 for in the solicitation; and 44.29 (3) a description of the performance measures or other 44.30 tools that will be used to monitor and evaluate contract 44.31 performance. 44.32 (b) In addition to paragraph (a), the agency must certify 44.33 that: 44.34 (1) no current state employee is able and available to 44.35 perform the services called for by the contract; 44.36 (2) the normal competitive bidding mechanisms will not 45.1 provide for adequate performance of the services; 45.2 (3)the contractor has certified that the product of the45.3services will be original in character;45.4(4)reasonable effortswerewill be made to publicize the 45.5 availability of the contract to the public; 45.6(5) the agency has received, reviewed, and accepted a45.7detailed work plan from the contractor for performance under the45.8contract, if applicable;45.9(6)(4) the agencyhas developed,will develop andfully45.10intends toimplement,a written plan providing for the 45.11 assignment of specific agency personnel to manage the contract, 45.12 including a monitoring and liaison function, the periodic review 45.13 of interim reports or other indications of past performance, and 45.14 the ultimate utilization of the final product of the 45.15 services;and45.16(7)(5) the agency will not allow the contractor to begin 45.17 work before the contract is fully executed unless an exception 45.18 under section 16C.05, subdivision 2a, has been granted by the 45.19 commissioner and funds are fully encumbered.; 45.20 (6) the contract will not establish an employment 45.21 relationship between the state or the agency and any persons 45.22 performing under the contract; and 45.23 (7) in the event the results of the contract work will be 45.24 carried out or continued by state employees upon completion of 45.25 the contract, the contractor is required to include state 45.26 employees in development and training, to the extent necessary 45.27 to ensure that after completion of the contract, state employees 45.28 can perform any ongoing work related to the same function. 45.29 (c) A contract establishes an employment relationship for 45.30 purposes of paragraph (b), clause (6), if, under federal laws 45.31 governing the distinction between an employee and an independent 45.32 contract, a person would be considered an employee. 45.33 Sec. 52. Minnesota Statutes 2002, section 16C.08, 45.34 subdivision 3, is amended to read: 45.35 Subd. 3. [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 45.36 CONTRACTS.] Before approving a proposed contract for 46.1 professional or technical services, the commissioner must 46.2 determine, at least, that: 46.3 (1) all provisions of subdivision 2 and section 16C.16 have 46.4 been verified or complied with; 46.5 (2) the agency has demonstrated that the work to be 46.6 performed under the contract is necessary to the agency's 46.7 achievement of its statutory responsibilities and there is 46.8 statutory authority to enter into the contract; 46.9 (3)the contract will not establish an employment46.10relationship between the state or the agency and any persons46.11performing under the contract;46.12(4)the contractor and agents are not employees of the 46.13 state; 46.14(5) no agency has previously performed or contracted for46.15the performance of tasks which would be substantially duplicated46.16under the proposed contract;46.17(6)(4) the contracting agency has specified a satisfactory 46.18 method of evaluating and using the results of the work to be 46.19 performed; and 46.20(7)(5) the combined contract and amendments will not 46.21 exceed five years, unless otherwise provided for by law. The 46.22 term of the original contract must not exceed two years unless 46.23 the commissioner determines that a longer duration is in the 46.24 best interest of the state. 46.25 Sec. 53. Minnesota Statutes 2002, section 16C.08, 46.26 subdivision 4, is amended to read: 46.27 Subd. 4. [REPORTS.] (a) The commissioner shall submit to 46.28 the governor, the chairs of the house ways and means and senate 46.29 finance committees, and the legislative reference library a 46.30 yearly listing of all contracts for professional or technical 46.31 services executed. The report must identify the contractor, 46.32 contract amount, duration, and services to be provided. The 46.33 commissioner shall also issue yearly reports summarizing the 46.34 contract review activities of the department by fiscal year. 46.35 (b) The fiscal year report must be submitted by September 1 46.36 of each year and must: 47.1 (1) be sorted by agency and by contractor; 47.2 (2) show the aggregate value of contracts issued by each 47.3 agency and issued to each contractor; 47.4 (3) distinguish between contracts that are being issued for 47.5 the first time and contracts that are being extended; 47.6 (4) state the termination date of each contract; and 47.7 (5) identify services by commodity code, including topics 47.8 such as contracts for training, contracts for research and 47.9 opinions, and contracts for computer systems. 47.10 (c) Within 30 days of final completion of a contract over 47.11$40,000$50,000 covered by this subdivision, the head of the 47.12 agency entering into the contract must submit a one-page report 47.13 to the commissioner who must submit a copy to the legislative 47.14 reference library. The report must: 47.15 (1) summarize the purpose of the contract, including why it 47.16 was necessary to enter into a contract; 47.17 (2) state the amount spent on the contract; and 47.18 (3)explain why this amount was a cost-effective way to47.19enable the agency to provide its services or products better or47.20more efficientlybe accompanied by the performance evaluation 47.21 prepared according to subdivision 4a. 47.22 Sec. 54. Minnesota Statutes 2002, section 16C.08, is 47.23 amended by adding a subdivision to read: 47.24 Subd. 4a. [PERFORMANCE EVALUATION.] Upon completion of a 47.25 professional or technical services contract, an agency entering 47.26 into the contract must complete a written performance evaluation 47.27 of the work done under the contract. The evaluation must 47.28 include an appraisal of the contractor's timeliness, quality, 47.29 cost, and overall performance in meeting the terms and 47.30 objectives of the contract. Contractors may request copies of 47.31 evaluations prepared under this subdivision and may respond in 47.32 writing. Contractor responses must be maintained with the 47.33 contract file. 47.34 Sec. 55. [16C.085] [WAIVER.] 47.35 Notwithstanding sections 16C.08, 16C.09, 43A.047, or other 47.36 law to the contrary, the commissioner of administration may 48.1 enter into or approve a service contract for printing services 48.2 or services provided by the DocuComm division without 48.3 determining that no current state employee is able and available 48.4 to perform the services called for by the contract. 48.5 Sec. 56. Minnesota Statutes 2002, section 16C.10, 48.6 subdivision 7, is amended to read: 48.7 Subd. 7. [REVERSE AUCTION.] (a) For the purpose of this 48.8 subdivision, "reverse auction" means a purchasing process in 48.9 which vendors compete to provide goods or engineering design or 48.10 computer services at the lowest selling price in an open and 48.11 interactive environment. 48.12 (b) The provisions of section 16C.06, subdivisions 2 and 3, 48.13 do not apply when the commissioner determines that a reverse 48.14 auction is the appropriate purchasing process. 48.15 Sec. 57. Minnesota Statutes 2002, section 16D.08, 48.16 subdivision 2, is amended to read: 48.17 Subd. 2. [POWERS.] (a) In addition to the collection 48.18 remedies available to private collection agencies in this state, 48.19 the commissioner, with legal assistance from the attorney 48.20 general, may utilize any statutory authority granted to a 48.21 referring agency for purposes of collecting debt owed to that 48.22 referring agency. The commissioner may alsodelegate to the48.23enterpriseuse the tax collection remedies in sections 270.06, 48.24clauses (7) and (17), excluding the power to subpoena witnesses;48.25 270.66;, 270.67, subdivisions 2 and 4, 270.69,excluding48.26subdivisions 7 and 13;270.70,excluding subdivision 14;48.27 270.7001 to 270.72;, and 290.92, subdivision 23, except that a48.28continuous wage levy under section 290.92, subdivision 23, is48.29only effective for 70 days, unless no competing wage48.30garnishments, executions, or levies are served within the 70-day48.31period, in which case a wage levy is continuous until a48.32competing garnishment, execution, or levy is served in the48.33second or a succeeding 70-day period, in which case a continuous48.34wage levy is effective for the remainder of that period. A 48.35 debtor may take advantage of any administrative or appeal rights 48.36 contained in the listed sections. For administrative and appeal 49.1 rights for nontax debts, references to administrative appeals or 49.2 to the taxpayer rights advocate shall be construed to be 49.3 references to the case reviewer, references to tax court shall 49.4 be construed to mean district court, and offers in compromise 49.5 shall be submitted to the referring agency. A debtor who 49.6 qualifies for cancellation of collection costs under section 49.7 16D.11, subdivision 3, clause (1), can apply to the commissioner 49.8 for reduction or release of a continuous wage levy, if the 49.9 debtor establishes that the debtor needs all or a portion of the 49.10 wages being levied upon to pay for essential living expenses, 49.11 such as food, clothing, shelter, medical care, or expenses 49.12 necessary for maintaining employment. The commissioner's 49.13 determination not to reduce or release a continuous wage levy is 49.14 appealable to district court. The word "tax" or "taxes" when 49.15 used in the tax collection statutes listed in this subdivision 49.16 also means debts referred under this chapter. 49.17 (b)For debts other than state taxes, child support, or49.18student loans, before any of the tax collection remedies listed49.19in this subdivision can be used, except for the remedies in49.20section 270.06, clauses (7) and (17), if the referring agency49.21has not already obtained a judgment or filed a lien, the49.22commissioner must first obtain a judgment against the debtor.49.23For student loans when the referring agency has not obtained a49.24judgment or filed a lien,Before using the tax collection 49.25 remedies listed in this subdivision,except for the remedies in49.26section 270.06, clauses (7) and (17), the commissioner shall49.27give the debtor 30 days' notice in writing, which may be served49.28in any manner permitted in section 270.68 for service of a49.29summons and complaint. The notice must advise the debtor of the49.30debtor's right to request that the commissioner commence a court49.31action, and that if no such request is made within 30 days after49.32service of the notice, the commissioner may use these tax49.33collection remedies. If a timely request is made, the49.34commissioner shall obtain a judgment before using these tax49.35collection remedies.notice and demand for payment of the amount 49.36 due must be given to the person liable for the payment or 50.1 collection of the debt at least 30 days prior to the use of the 50.2 remedies. The notice must be sent to the person's last known 50.3 address and must include a brief statement that sets forth in 50.4 simple and nontechnical terms the amount and source of the debt, 50.5 the nature of the available collection remedies, and remedies 50.6 available to the debtor. 50.7 [EFFECTIVE DATE.] This section is effective the day 50.8 following final enactment for all debts referred, whether 50.9 referred prior to, on, or after the day following final 50.10 enactment. 50.11 Sec. 58. Minnesota Statutes 2002, section 16E.01, 50.12 subdivision 3, is amended to read: 50.13 Subd. 3. [DUTIES.] (a) The office shall: 50.14 (1) coordinate the efficient and effective use of available 50.15 federal, state, local, and private resources to develop 50.16 statewide information and communications technology and its 50.17 infrastructure; 50.18 (2) review state agency and intergovernmental information 50.19 and communications systems development efforts involving state 50.20 or intergovernmental funding, including federal funding, provide 50.21 information to the legislature regarding projects reviewed, and 50.22 recommend projects for inclusion in the governor's budget under 50.23 section 16A.11; 50.24 (3) encourage cooperation and collaboration among state and 50.25 local governments in developing intergovernmental communication 50.26 and information systems, and define the structure and 50.27 responsibilities of the information policy council; 50.28 (4) cooperate and collaborate with the legislative and 50.29 judicial branches in the development of information and 50.30 communications systems in those branches; 50.31 (5) continue the development of North Star, the state's 50.32 official comprehensive online service and information 50.33 initiative; 50.34 (6) promote and collaborate with the state's agencies in 50.35 the state's transition to an effectively competitive 50.36 telecommunications market; 51.1 (7) collaborate with entities carrying out education and 51.2 lifelong learning initiatives to assist Minnesotans in 51.3 developing technical literacy and obtaining access to ongoing 51.4 learning resources; 51.5 (8) promote and coordinate public information access and 51.6 network initiatives, consistent with chapter 13, to connect 51.7 Minnesota's citizens and communities to each other, to their 51.8 governments, and to the world; 51.9 (9) promote and coordinate electronic commerce initiatives 51.10 to ensure that Minnesota businesses and citizens can 51.11 successfully compete in the global economy; 51.12 (10) promote and coordinate the regular and periodic 51.13 reinvestment in the core information and communications 51.14 technology infrastructure so that state and local government 51.15 agencies can effectively and efficiently serve their customers; 51.16 (11) facilitate the cooperative development of standards 51.17 for information systems, electronic data practices and privacy, 51.18 and electronic commerce among international, national, state, 51.19 and local public and private organizations; and 51.20 (12) work with others to avoid unnecessary duplication of 51.21 existing services provided by other public and private 51.22 organizations while building on the existing governmental, 51.23 educational, business, health care, and economic development 51.24 infrastructures. 51.25 (b) The commissioner of administration in consultation with 51.26 the commissioner of finance may determine that it is 51.27 cost-effective for agencies to develop and use shared 51.28 information and communications technology systems for the 51.29 delivery of electronic government services. This determination 51.30 may be made if an agency proposes a new system that duplicates 51.31 an existing system, a system in development, or a system being 51.32 proposed by another agency. The commissioner of administration 51.33 shall establish reimbursement rates in cooperation with the 51.34 commissioner of finance to be billed to agencies and other 51.35 governmental entities sufficient to cover the actual 51.36 development, operating, maintenance, and administrative costs of 52.1 the shared systems. The methodology for billing may include the 52.2 use of interagency agreements, or other means as allowed by law. 52.3 Sec. 59. Minnesota Statutes 2002, section 16E.07, 52.4 subdivision 9, is amended to read: 52.5 Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall 52.6 identify opportunities to aggregate demand for technical 52.7 services required by government units for online activities and 52.8 may contract with governmental or nongovernmental entities to 52.9 provide services. These contracts are not subject to the 52.10 requirements of chapters 16B and 16C, except sections 16C.04, 52.1116C.07,16C.08, and 16C.09. 52.12 Sec. 60. Minnesota Statutes 2002, section 43A.17, 52.13 subdivision 9, is amended to read: 52.14 Subd. 9. [POLITICAL SUBDIVISION COMPENSATION LIMIT.] (a) 52.15 The salary and the value of all other forms of compensation of a 52.16 person employed by astatutory or home rule charter city,52.17county, town, metropolitan or regional agency, or other52.18 political subdivision of this state, excluding a school 52.19 district, or employed under section 422A.03,may not exceed 95 52.20 percent of the salary of the governor as set under section 52.21 15A.082, except as provided in this subdivision. For purposes 52.22 of this subdivision, "political subdivision of this state" 52.23 includes a statutory or home rule charter city, county, town, 52.24 metropolitan or regional agency, or other political subdivision, 52.25 but does not include a hospital, clinic, or health maintenance 52.26 organization owned by such a governmental unit. 52.27 (b) Deferred compensation and payroll allocations to 52.28 purchase an individual annuity contract for an employee are 52.29 included in determining the employee's salary. Other forms of 52.30 compensation which shall be included to determine an employee's 52.31 total compensation are all other direct and indirect items of 52.32 compensation which are not specifically excluded by this 52.33 subdivision. Other forms of compensation which shall not be 52.34 included in a determination of an employee's total compensation 52.35 for the purposes of this subdivision are: 52.36 (1) employee benefits that are also provided for the 53.1 majority of all other full-time employees of the political 53.2 subdivision, vacation and sick leave allowances, health and 53.3 dental insurance, disability insurance, term life insurance, and 53.4 pension benefits or like benefits the cost of which is borne by 53.5 the employee or which is not subject to tax as income under the 53.6 Internal Revenue Code of 1986; 53.7 (2) dues paid to organizations that are of a civic, 53.8 professional, educational, or governmental nature; and 53.9 (3) reimbursement for actual expenses incurred by the 53.10 employee which the governing body determines to be directly 53.11 related to the performance of job responsibilities, including 53.12 any relocation expenses paid during the initial year of 53.13 employment. 53.14 The value of other forms of compensation shall be the 53.15 annual cost to the political subdivision for the provision of 53.16 the compensation. 53.17 (c) The salary of a medical doctor or doctor of osteopathy 53.18 occupying a position that the governing body of the political 53.19 subdivision has determined requires an M.D. or D.O. degree is 53.20 excluded from the limitation in this subdivision. 53.21 (d) The commissioner may increase the limitation in this 53.22 subdivision for a position that the commissioner has determined 53.23 requires special expertise necessitating a higher salary to 53.24 attract or retain a qualified person. The commissioner shall 53.25 review each proposed increase giving due consideration to salary 53.26 rates paid to other persons with similar responsibilities in the 53.27 state and nation. The commissioner may not increase the 53.28 limitation until the commissioner has presented the proposed 53.29 increase to the legislative coordinating commission and received 53.30 the commission's recommendation on it. The recommendation is 53.31 advisory only. If the commission does not give its 53.32 recommendation on a proposed increase within 30 days from its 53.33 receipt of the proposal, the commission is deemed to have 53.34recommended approvalmade no recommendation. 53.35 Sec. 61. [43A.311] [DRUG PURCHASING PROGRAM.] 53.36 The commissioner of employee relations, in conjunction with 54.1 the commissioner of human services and other state agencies, 54.2 shall evaluate whether participation in a multistate or 54.3 multiagency drug purchasing program can reduce costs or improve 54.4 the operations of the drug benefit programs administered by the 54.5 department and other state agencies. The commissioner and other 54.6 state agencies may enter into a contract with a vendor or other 54.7 states for purposes of participating in a multistate or 54.8 multiagency drug purchasing program. 54.9 Sec. 62. Minnesota Statutes 2002, section 69.772, 54.10 subdivision 2, is amended to read: 54.11 Subd. 2. [DETERMINATION OF ACCRUED LIABILITY.] Each 54.12 firefighters' relief association which pays a service pension 54.13 when a retiring firefighter meets the minimum requirements for 54.14 entitlement to a service pension specified in section 424A.02 54.15 and which in its articles of incorporation or bylaws requires 54.16 service credit for a period of service of at least 20 years of 54.17 active service for a totally nonforfeitable service pension 54.18 shall determine the accrued liability of the special fund of the 54.19 firefighters' relief association relative to each activeor54.20deferredmember of the relief association, calculated 54.21 individually using the following table: 54.22 Cumulative Accrued 54.23 Year Liability 54.24 ............. ............. 54.25 1 $ 60 54.26 2 124 54.27 3 190 54.28 4 260 54.29 5 334 54.30 6 410 54.31 7 492 54.32 8 576 54.33 9 666 54.34 10 760 54.35 11 858 54.36 12 962 55.1 13 1070 55.2 14 1184 55.3 15 1304 55.4 16 1428 55.5 17 1560 55.6 18 1698 55.7 19 1844 55.8 20 2000 55.9 21 and thereafter 100 additional 55.10 per year 55.11 As set forth in the table the accrued liability for each 55.12 memberor deferred memberof the relief association corresponds 55.13 to the cumulative years of active service to the credit of the 55.14 member. The accrued liability of the special fund for each 55.15 activeor deferredmember is determined by multiplying the 55.16 accrued liability from the chart by the ratio of the lump sum 55.17 service pension amount currently provided for in the bylaws of 55.18 the relief association to a service pension of $100 per year of 55.19 service. If a member has fractional service as of December 31, 55.20 the figure for service credit to be used for the determination 55.21 of accrued liability pursuant to this section shall be rounded 55.22 to the nearest full year of service credit. The total accrued 55.23 liability of the special fund as of December 31 shall be the sum 55.24 of the accrued liability attributable to each activeor deferred55.25 member of the relief association. 55.26 To the extent that the state auditor considers it to be 55.27 necessary or practical, the state auditor may specify and issue 55.28 procedures, forms, or mathematical tables for use in performing 55.29 the calculations of the accrued liability for deferred members 55.30 pursuant to this subdivision. 55.31 Sec. 63. Minnesota Statutes 2002, section 115A.929, is 55.32 amended to read: 55.33 115A.929 [FEES; ACCOUNTING.] 55.34 Each political subdivision that provides for solid waste 55.35 management shall account for all revenue collected from waste 55.36 management fees, together with interest earned on revenue from 56.1 the fees, separately from other revenue collected by the 56.2 political subdivision and shall report revenue collected from 56.3 the fees and use of the revenue separately from other revenue 56.4 and use of revenue in any required financial report or audit. 56.5 Each political subdivision must file with the director, on or 56.6 before June 30 annually, the separate report of all revenue 56.7 collected from waste management fees, together with interest on 56.8 revenue from the fees, for the previous year. For the purposes 56.9 of this section, "waste management fees" means: 56.10 (1) all fees, charges, and surcharges collected under 56.11 sections 115A.919, 115A.921, and 115A.923; 56.12 (2) all tipping fees collected at waste management 56.13 facilities owned or operated by the political subdivision; 56.14 (3) all charges imposed by the political subdivision for 56.15 waste collection and management services; and 56.16 (4) any other fees, charges, or surcharges imposed on waste 56.17 or for the purpose of waste management, whether collected 56.18 directly from generators or indirectly through property taxes or 56.19 as part of utility or other charges for services provided by the 56.20 political subdivision. 56.21 Sec. 64. Minnesota Statutes 2002, section 116J.8771, is 56.22 amended to read: 56.23 116J.8771 [WAIVER.] 56.24 The capital access program is exempt from section 16C.05, 56.25 subdivision 2, paragraph(a), clause (5)(b). 56.26 Sec. 65. Minnesota Statutes 2002, section 197.608, is 56.27 amended to read: 56.28 197.608 [VETERANS SERVICE OFFICE GRANT PROGRAM.] 56.29 Subdivision 1. [GRANT PROGRAM.] A veterans service office 56.30 grant program is established to be administered by the 56.31 commissioner of veterans affairs consisting of grants to 56.32 counties to enable them to enhance the effectiveness of their 56.33 veterans service offices. 56.34 Subd. 2. [RULE DEVELOPMENT.] The commissionerof veterans56.35affairsshall consult with the Minnesota association of county 56.36 veterans service officers in formulating rules to implement the 57.1 grant program. 57.2 Subd. 2a. [GRANT CYCLE.] Counties may become eligible to 57.3 receive grants on a three-year rotating basis according to a 57.4 schedule to be developed and announced in advance by the 57.5 commissioner. The schedule must list no more than one-third of 57.6 the counties in each year of the three-year cycle. A county may 57.7 be considered for a grant only in the year of its listing in the 57.8 schedule. 57.9 Subd. 3. [ELIGIBILITY.] (a) To be eligible for a grant 57.10 under this program, a county must:57.11(1)employ a county veterans service officer as authorized 57.12 by sections 197.60 and 197.606, who is certified to serve in 57.13 this position by the commissionerof veterans affairs;. 57.14(2) submit a written plan for the proposed expenditures to57.15enhance the functioning of the county veterans service office in57.16accordance with the program rules; and57.17(3) apply for the grant according to procedures to be57.18established for this program by the commissioner and receive57.19written approval from the commissioner for the grant in advance57.20of making the proposed expenditures.57.21 (b) A county that employs a newly hired county veterans 57.22 service officer who is serving an initial probationary period 57.23 and who has not been certified by the commissioner is eligible 57.24 to receive a grant under subdivision 2a. 57.25 (c) Except for the situation described in paragraph (b), a 57.26 county whose veterans service officer does not receive 57.27 certification during any year of the three-year cycle is not 57.28 eligible to receive a grant during the remainder of that cycle 57.29 or the next three-year cycle. 57.30 Subd. 4. [GRANTAPPLICATIONPROCESS.] (a)A grant57.31application must be submitted to the department of veterans57.32affairs according to procedures to be established by the57.33commissioner. The grant application must include a specific57.34description of the plan for enhancing the operation of the57.35county veterans service office.The commissioner shall determine 57.36 the process for awarding grants. A grant may be used only for 58.1 the purpose of enhancing the operations of the county veterans 58.2 service office. 58.3 (b) The commissioner shall provide a list of qualifying 58.4 uses for grant expenditures as developed in subdivision 5 and 58.5 shall approve a grantapplicationonlyif it meets the criteria58.6for eligibility as established and announced by the commissioner58.7 for a qualifying use and if there are sufficient funds remaining 58.8 in the grant program to cover the full amount of the grant.The58.9commissioner may request modification of a plan. If the58.10commissioner rejects a grant application, written reasons for58.11the rejection must be provided to the applicant county and the58.12county may modify the application and resubmit it.58.13 Subd. 5. [QUALIFYING USES.] The commissionerof veterans58.14affairsshalldetermine whether the plan specified in the grant58.15application will enable the applicant county to enhance the58.16effectiveness of its county veterans office.58.17Notwithstanding subdivision 3, clause (1), a county may58.18apply for and use a grant for the training and education58.19required by the commissioner for a newly employed county58.20veterans service officer's certificate, or for the continuing58.21education of other staffconsult with the Minnesota association 58.22 of county veterans service officers in developing a list of 58.23 qualifying uses for grants awarded under this program. 58.24 Subd. 6. [GRANT AMOUNT.] The amount of each grant must be 58.25 determined by the commissionerof veterans affairs,and may not 58.26 exceedthe lesser of: 58.27(1) the amount specified in the grant application to be58.28expended on the plan for enhancing the effectiveness of the58.29county veterans service office; or58.30(2) the county's share of the total funds available under58.31the program, determined in the following manner:58.32(i)(1) $1,400, if the county's veteran population is less 58.33 than 1,000, the county's grant share shall be $2,000; 58.34(ii)(2) $2,800, if the county's veteran population is 58.35 1,000 or more but less than 3,000, the county's grant share58.36shall be $4,000; 59.1(iii)(3) $4,200, if the county's veteran population is 59.2 3,000 or more but less then 10,000, the county's grant share59.3shall be $6,000; or 59.4(iv)(4) $5,600, if the county's veteran population is 59.5 10,000 or more, the county's grant share shall be $8,000. 59.6In any year, only one-half of the counties in each of the59.7four veteran population categories (i) to (iv) may be awarded59.8grants. Grants shall be awarded on a first-come first-served59.9basis to counties submitting applications which meet the59.10commissioner's criteria as established in the rules. Any county59.11not receiving a grant in any given year shall receive priority59.12consideration for a grant the following year.59.13In any year, after a period of time to be determined by the59.14commissioner, any amounts remaining from undistributed county59.15grant shares may be reallocated to the other counties which have59.16submitted qualifying application.59.17 The veteran population of each county shall be determined 59.18 by the figure supplied by the United States Department of 59.19 Veterans Affairs, as adopted by the commissioner. 59.20 Subd. 7. [RECAPTURE.] If a county fails to use the grant 59.21 for the qualified use approved by the commissioner, the 59.22 commissioner shall seek recovery of the grant from the county 59.23 and the county must repay the grant amount. 59.24 Sec. 66. Minnesota Statutes 2002, section 237.49, is 59.25 amended to read: 59.26 237.49 [COMBINED LOCAL ACCESS SURCHARGE.] 59.27 Each local telephone company shall collect from each 59.28 subscriber an amount per telephone access line representing the 59.29 total of the surcharges required under sections 237.52, 237.70, 59.30 and 403.11. Amounts collected must be remitted to the 59.31department of administrationcommissioner of public safety in 59.32 the manner prescribed in section 403.11. Thedepartment of59.33administrationcommissioner of public safety shall divide the 59.34 amounts received proportional to the individual surcharges and 59.35 deposit them in the appropriate accounts. The commissioner of 59.36 public safety may recover from the agencies receiving the 60.1 surcharges the personnel and administrative costs to collect and 60.2 distribute the surcharge. A company or the billing agent for a 60.3 company shall list the surcharges as one amount on a billing 60.4 statement sent to a subscriber. 60.5 Sec. 67. Minnesota Statutes 2002, section 237.52, 60.6 subdivision 3, is amended to read: 60.7 Subd. 3. [COLLECTION.] Every telephone company or 60.8 communications carrier that provides service capable of 60.9 originating a telecommunications relay call, including cellular 60.10 communications and other nonwire access services, in this state 60.11 shall collect the charges established by the commission under 60.12 subdivision 2 and transfer amounts collected to the commissioner 60.13 ofadministrationpublic safety in the same manner as provided 60.14 in section 403.11, subdivision 1, paragraph (d). The 60.15 commissioner ofadministrationpublic safety must deposit the 60.16 receipts in the fund established in subdivision 1. 60.17 Sec. 68. Minnesota Statutes 2002, section 237.701, 60.18 subdivision 1, is amended to read: 60.19 Subdivision 1. [FUND CREATED; AUTHORIZED EXPENDITURES.] 60.20 The telephone assistance fund is created as a separate account 60.21 in the state treasury to consist of amounts received by 60.22 thedepartment of administrationcommissioner of public safety 60.23 representing the surcharge authorized by section 237.70, 60.24 subdivision 6, and amounts earned on the fund assets. Money in 60.25 the fund may be used only for: 60.26 (1) reimbursement to telephone companies for expenses and 60.27 credits allowed in section 237.70, subdivision 7, paragraph (d), 60.28 clause (5); 60.29 (2) reimbursement of the administrative expenses of the 60.30 department of human services to implement sections 237.69 to 60.31 237.71, not to exceed $314,000 annually; 60.32 (3) reimbursement of the administrative expenses of the 60.33 commission not to exceed $25,000 annually; and 60.34 (4) reimbursement of the statewide indirect cost of the 60.35 commission. 60.36 Sec. 69. Minnesota Statutes 2002, section 240.03, is 61.1 amended to read: 61.2 240.03 [COMMISSION POWERS AND DUTIES.] 61.3 The commission has the following powers and duties: 61.4 (1) to regulate horse racing in Minnesota to ensure that it 61.5 is conducted in the public interest; 61.6 (2) to issue licenses as provided in this chapter; 61.7 (3) to enforce all laws and rules governing horse racing; 61.8 (4) to collect and distribute all taxes provided for in 61.9 this chapter; 61.10 (5) to conduct necessary investigations and inquiries and 61.11 compel the submission of information, documents, and records it 61.12 deems necessary to carry out its duties; 61.13 (6) to supervise the conduct of pari-mutuel betting on 61.14 horse racing; 61.15 (7) to employ and supervise personnel under this chapter; 61.16 (8) to determine the number of racing days to be held in 61.17 the state and at each licensed racetrack;and61.18 (9) to take all necessary steps to ensure the integrity of 61.19 racing in Minnesota.; and 61.20 (10) to impose fees on the racing and card playing 61.21 industries sufficient to recover the operating costs of the 61.22 commission with the approval of the legislature according to 61.23 section 16A.1283. Notwithstanding section 16A.1283, when the 61.24 legislature is not in session, the commissioner of finance may 61.25 grant interim approval for any new fees or adjustments to 61.26 existing fees that are not statutorily specified, until such 61.27 time as the legislature reconvenes and acts upon the new fees or 61.28 adjustments. As part of its biennial budget request, the 61.29 commission must propose changes to its fees that will be 61.30 sufficient to recover the operating costs of the commission. 61.31 Sec. 70. Minnesota Statutes 2002, section 240.10, is 61.32 amended to read: 61.33 240.10 [LICENSE FEES.] 61.34 The fee for a class A license is$10,000$253,000 per year 61.35 and must be remitted on July 1. The fee for a class B license 61.36 is$100$500 for each assigned racing dayon which racing is62.1actually conducted,and$50$100 for each day on which 62.2 simulcasting is authorized andactually takes place, plus62.3$10,000 per year if the class B license includes authorization62.4to operate a card clubmust be remitted on July 1. Included 62.5 herein are all days assigned to be conducted after January 1, 62.6 2003. The fee for a class D license is $50 for each assigned 62.7 racing day on which racing is actually conducted. Fees imposed 62.8 onclass B andclass D licenses must be paid to the commission 62.9 at a time and in a manner as provided by rule of the commission. 62.10 The commission shall by rule establish an annual license 62.11 fee for each occupation it licenses under section 240.08 but no 62.12 annual fee for a class C license may exceed $100. 62.13License fee payments received must be paid by the62.14commission to the state treasurer for deposit in the general62.15fund.62.16 Sec. 71. Minnesota Statutes 2002, section 240.15, 62.17 subdivision 6, is amended to read: 62.18 Subd. 6. [DISPOSITION OF PROCEEDS; ACCOUNT.] The 62.19 commission shall distribute all money received under this 62.20 section, and all money received from license fees and fines it 62.21 collects,as follows:according to this subdivision. All money 62.22 designated for deposit in the Minnesota breeders fund must be 62.23 paid into that fund for distribution under section 240.18 except 62.24 that all money generated by full racing card simulcasts must be 62.25 distributed as provided in section 240.18, subdivisions 2, 62.26 paragraph (d), clauses (1), (2), and (3); and 3. Revenue from 62.27 an admissions tax imposed under subdivision 1 must be paid to 62.28 the local unit of government at whose request it was imposed, at 62.29 times and in a manner the commission determines.All other62.30revenuesTaxes received under this sectionby the commission,62.31and all license fees, fines, and other revenue it receives,and 62.32 fines collected under section 240.22 must be paid to the state 62.33 treasurer for deposit in the general fund. All revenues from 62.34 licenses and other fees imposed by the commission must be 62.35 deposited in the state treasury and credited to a racing and 62.36 card playing regulation account in the special revenue fund. 63.1 Receipts in this account are available for the operations of the 63.2 commission up to the amount authorized in biennial 63.3 appropriations from the legislature. 63.4 Sec. 72. Minnesota Statutes 2002, section 240.155, 63.5 subdivision 1, is amended to read: 63.6 Subdivision 1. [REIMBURSEMENT ACCOUNT CREDIT.] Money 63.7 received by the commission as reimbursement for the costs of 63.8 services provided byassistantveterinarians, stewards, and 63.9 medical testing of horses must be deposited in the state 63.10 treasury and credited to a racing reimbursement account, except 63.11 as provided under subdivision 2. Receipts are appropriated to 63.12 the commission to pay the costs of providing the services. 63.13 [EFFECTIVE DATE.] This section is effective the day 63.14 following final enactment. 63.15 Sec. 73. Minnesota Statutes 2002, section 240A.03, 63.16 subdivision 10, is amended to read: 63.17 Subd. 10. [USE AGREEMENTS AND FEES.] The commission may 63.18 lease, license, or enter into agreements and may fix, alter, 63.19 charge, and collect rentals, fees, and charges to persons for 63.20 the use, occupation, and availability of part or all of any 63.21 premises, property, or facilities under its ownership, 63.22 operation, or control. Fees charged by the commission are not 63.23 subject to section 16A.1285. The commission may also impose 63.24 other fees it deems appropriate with the approval of the 63.25 legislature according to section 16A.1283. Notwithstanding 63.26 section 16A.1283, when the legislature is not in session, the 63.27 commissioner of finance may grant interim approval of the fees, 63.28 until such time as the legislature reconvenes and acts upon the 63.29 fees. A use agreement may provide that the other contracting 63.30 party has exclusive use of the premises at the times agreed upon. 63.31 Sec. 74. Minnesota Statutes 2002, section 240A.04, is 63.32 amended to read: 63.33 240A.04 [PROMOTION AND DEVELOPMENT OF AMATEUR SPORTS.] 63.34 In addition to the powers and duties granted under section 63.35 240A.03, the commissionshallmay: 63.36 (1) promote the development of olympic training centers; 64.1 (2) promote physical fitness by promoting participation in 64.2 sports; 64.3 (3) develop, foster, and coordinate physical fitness 64.4 services and programs; 64.5 (4) sponsor amateur sport workshops, clinics, and 64.6 conferences; 64.7 (5) provide recognition for outstanding developments, 64.8 achievements, and contributions to amateur sports; 64.9 (6) stimulate and promote amateur sport research; 64.10 (7) collect, disseminate, and communicate amateur sport 64.11 information; 64.12 (8) promote amateur sport and physical fitness programs in 64.13 schools and local communities; 64.14 (9) develop programs to promote personal health and 64.15 physical fitness by participation in amateur sports in 64.16 cooperation with medical, dental, sports medicine, and similar 64.17 professional societies; 64.18 (10) promote the development of recreational amateur sport 64.19 opportunities and activities in the state, including the means 64.20 of facilitating acquisition, financing, construction, and 64.21 rehabilitation of sports facilities for the holding of amateur 64.22 sporting events; 64.23 (11) promote national and international amateur sport 64.24 competitions and events; 64.25 (12) sanction or sponsor amateur sport competition; 64.26 (13) take membership in regional or national amateur sports 64.27 associations or organizations; and 64.28 (14) promote the mainstreaming and normalization of people 64.29 with physical disabilities and visual and hearing impairments in 64.30 amateur sports. 64.31 Sec. 75. Minnesota Statutes 2002, section 240A.06, 64.32 subdivision 1, is amended to read: 64.33 Subdivision 1. [SPONSORSHIP REQUIRED.] The commission 64.34shallmay sponsor and sanction a series of statewide amateur 64.35 athletic games patterned after the winter and summer Olympic 64.36 Games, with variations as required by facilities, equipment, and 65.1 expertise, and as necessary to include people with physical 65.2 disabilities and visual and hearing impairments. The games may 65.3 be held annually beginning in 1989, if money and facilities are 65.4 available, unless the time of the games would conflict with 65.5 other sporting events as the commission determines. 65.6 Sec. 76. Minnesota Statutes 2002, section 256B.435, 65.7 subdivision 2a, is amended to read: 65.8 Subd. 2a. [DURATION AND TERMINATION OF CONTRACTS.] (a) All 65.9 contracts entered into under this section are for a term of one 65.10 year. Either party may terminate this contract at any time 65.11 without cause by providing 90 calendar days' advance written 65.12 notice to the other party. Notwithstanding section 16C.05, 65.13 subdivisions 2, paragraph(a)(b), and 5, if neither party 65.14 provides written notice of termination, the contract shall be 65.15 renegotiated for additional one-year terms or the terms of the 65.16 existing contract will be extended for one year. The provisions 65.17 of the contract shall be renegotiated annually by the parties 65.18 prior to the expiration date of the contract. The parties may 65.19 voluntarily renegotiate the terms of the contract at any time by 65.20 mutual agreement. 65.21 (b) If a nursing facility fails to comply with the terms of 65.22 a contract, the commissioner shall provide reasonable notice 65.23 regarding the breach of contract and a reasonable opportunity 65.24 for the facility to come into compliance. If the facility fails 65.25 to come into compliance or to remain in compliance, the 65.26 commissioner may terminate the contract. If a contract is 65.27 terminated, provisions of section 256B.48, subdivision 1a, shall 65.28 apply. 65.29 Sec. 77. Minnesota Statutes 2002, section 268.186, is 65.30 amended to read: 65.31 268.186 [RECORDS.] 65.32 (a) Each employer shall keep true and accurate records for 65.33 the periods of time and containing the information the 65.34 commissioner may require. For the purpose of administering this 65.35 chapter, the commissioner has the power to examine, or cause to 65.36 be supplied or copied, any books, correspondence, papers, 66.1 records, or memoranda that are relevant, whether the books, 66.2 correspondence, papers, records, or memoranda are the property 66.3 of or in the possession of the employer or any other person at 66.4 any reasonable time and as often as may be necessary. 66.5 (b) The commissioner may make summaries, compilations, 66.6 photographs, duplications, or reproductions of any records, or 66.7 reports that the commissioner considers advisable for the 66.8 preservation of the information contained therein. Any 66.9 summaries, compilations, photographs, duplications, or 66.10 reproductions shall be admissible in any proceeding under this 66.11 chapter.Regardless of any restrictions contained in section66.1216B.50,The commissioner may duplicate records, reports, 66.13 summaries, compilations, instructions, determinations, or any 66.14 other written or recorded matter pertaining to the 66.15 administration of this chapter. 66.16 (c) Regardless of any law to the contrary, the commissioner 66.17 may provide for the destruction of any records, reports, or 66.18 reproductions thereof, or other papers, that are more than two 66.19 years old, and that are no longer necessary for determining 66.20 employer liability or an applicant's unemployment benefit rights 66.21 or for the administration of this chapter, including any 66.22 required audit. The commissioner may provide for the 66.23 destruction or disposition of any record, report, or other paper 66.24 that has been photographed, duplicated, or reproduced. 66.25 Sec. 78. Minnesota Statutes 2002, section 270.052, is 66.26 amended to read: 66.27 270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 66.28 Pursuant to section 270B.12, the commissioner may enter 66.29 into an agreement with the Internal Revenue Service to identify 66.30 taxpayers who have refunds due from the department of revenue 66.31 and liabilities owing to the Internal Revenue Service. In 66.32 accordance with the procedures established in the agreement, the 66.33 Internal Revenue Service may levy against the refunds to be paid 66.34 by the department of revenue. For each refund levied upon, the 66.35 commissioner shall first deduct from the refund a fee of $20, 66.36 and then remit the refund or the amount of the levy, whichever 67.1 is less, to the Internal Revenue Service. The proceeds of fees 67.2 shall be deposited into the department of revenue recapture 67.3 revolving fund under section 270A.07, subdivision 1. 67.4 [EFFECTIVE DATE.] This section is effective the day 67.5 following final enactment. 67.6 Sec. 79. Minnesota Statutes 2002, section 270.44, is 67.7 amended to read: 67.8 270.44 [CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.] 67.9 The boardmay establish reasonable fees or charges for67.10courses, examinations or materials, the proceeds of which shall67.11be used to finance the activities and operation of the67.12board.shall charge the following fees: 67.13 (1) $105 for a senior accredited Minnesota assessor 67.14 license; 67.15 (2) $80 for an accredited Minnesota assessor license; 67.16 (3) $65 for a certified Minnesota assessor specialist 67.17 license; 67.18 (4) $55 for a certified Minnesota assessor license; 67.19 (5) $50 for a course challenge examination; 67.20 (6) $35 for grading a form appraisal; 67.21 (7) $60 for grading a narrative appraisal; 67.22 (8) $30 for a reinstatement fee; 67.23 (9) $25 for a record retention fee; 67.24 (10) $20 for an educational transcript; and 67.25 (11) $30 for all retests of board-sponsored educational 67.26 courses. 67.27 [EFFECTIVE DATE.] This section is effective for license 67.28 terms beginning on or after July 1, 2004, and for all other fees 67.29 imposed on or after July 1, 2004. 67.30 Sec. 80. Minnesota Statutes 2002, section 270A.07, 67.31 subdivision 1, is amended to read: 67.32 Subdivision 1. [NOTIFICATION REQUIREMENT.] Any claimant 67.33 agency, seeking collection of a debt through setoff against a 67.34 refund due, shall submit to the commissioner information 67.35 indicating the amount of each debt and information identifying 67.36 the debtor, as required by section 270A.04, subdivision 3. 68.1 For each setoff of a debt against a refund due, the 68.2 commissioner shall charge a fee of$10$15. The proceeds of 68.3 fees shall be allocated by depositing$2.55$4 of each$10$15 68.4 fee collected into a department of revenue recapture revolving 68.5 fund and depositing the remaining balance into the general 68.6 fund. The sums deposited into the revolving fund are 68.7 appropriated to the commissioner for the purpose of 68.8 administering the Revenue Recapture Act. 68.9 The claimant agency shall notify the commissioner when a 68.10 debt has been satisfied or reduced by at least $200 within 30 68.11 days after satisfaction or reduction. 68.12 [EFFECTIVE DATE.] This section is effective for refund 68.13 setoffs after June 30, 2003. 68.14 Sec. 81. Minnesota Statutes 2002, section 289A.08, 68.15 subdivision 16, is amended to read: 68.16 Subd. 16. [TAX REFUND OR RETURN PREPARERS; ELECTRONIC 68.17 FILING; PAPER FILING FEE IMPOSED.] (a) A "tax refund or return 68.18 preparer," as defined in section 289A.60, subdivision 13, 68.19 paragraph (g), who prepared more than 500 Minnesota individual 68.20 income tax returns for the prior calendar year must file all 68.21 Minnesota individual income tax returns prepared for the current 68.22 calendar year by electronic means. 68.23 (b) For tax returns prepared for the tax year beginning in 68.24 2001, the "500" in paragraph (a) is reduced to 250. 68.25 (c) For tax returns prepared for tax years beginning after 68.26 December 31, 2001, the "500" in paragraph (a) is reduced to 100. 68.27 (d) Paragraph (a) does not apply to a return if the 68.28 taxpayer has indicated on the return that the taxpayer did not 68.29 want the return filed by electronic means. 68.30 (e) For each return that is not filed electronically by a 68.31 tax refund or return preparer under this subdivision, including 68.32 returns filed under paragraph (d), a paper filing fee of $5 is 68.33 imposed upon the preparer. The fee is collected from the 68.34 preparer in the same manner as income tax. 68.35 [EFFECTIVE DATE.] This section is effective for returns 68.36 filed for tax years beginning after December 31, 2002. 69.1 Sec. 82. Minnesota Statutes 2002, section 306.95, is 69.2 amended to read: 69.3 306.95 [DUTIES OF THE COUNTY AUDITOR.] 69.4 Subdivision 1. [NOTIFICATIONOF STATE AUDITOR.] Any county 69.5 auditor finding evidence of violations of this chapter when 69.6 reviewing reports or bonds filed by any person, firm, 69.7 partnership, association, or corporation operating a cemetery, 69.8 mausoleum, or columbarium must notify thestate auditor's office69.9 county attorney in a timely manner of such finding. 69.10 Subd. 2. [ANNUAL LETTER.] Every county auditor must file 69.11 an annual letter by May 31 with thestate auditor's office69.12 county attorney disclosing whether the county auditor has 69.13 detected any indications of violations of this chapter in the 69.14 reports or bonds which were filed or should have been filed. If 69.15 the county auditor has not detected from the information 69.16 supplied to the county auditor any such indications, that fact 69.17 must be reported to thestate auditorcounty attorney in the 69.18 annual letter. 69.19 Sec. 83. [326.992] [BOND REQUIREMENT; GAS, HEATING, 69.20 VENTILATION, AIR CONDITIONING, REFRIGERATION (G/HVACR) 69.21 CONTRACTORS.] 69.22 (a) A person contracting to do gas, heating, ventilation, 69.23 cooling, air conditioning, fuel burning, or refrigeration work 69.24 must give bond to the state in the amount of $25,000 for all 69.25 work entered into within the state. The bond must be for the 69.26 benefit of persons suffering financial loss by reason of the 69.27 contractor's failure to comply with the requirements of the 69.28 State Mechanical Code. A bond given to the state must be filed 69.29 with the commissioner of administration and is in lieu of all 69.30 other bonds to any political subdivision required for work 69.31 covered by this section. The bond must be written by a 69.32 corporate surety licensed to do business in the state. 69.33 (b) The commissioner of administration may charge each 69.34 person giving bond under this section an annual bond filing fee 69.35 of $15. The money must be deposited in a special revenue fund 69.36 and is appropriated to the commissioner to cover the cost of 70.1 administering the bond program. 70.2 Sec. 84. Minnesota Statutes 2002, section 349.12, is 70.3 amended by adding a subdivision to read: 70.4 Subd. 11a. [DISTRIBUTOR SALESPERSON.] "Distributor 70.5 salesperson" means a person who in any manner receives orders 70.6 for gambling equipment or who solicits a licensed, exempt, or 70.7 excluded organization to purchase gambling equipment from a 70.8 licensed distributor. 70.9 Sec. 85. Minnesota Statutes 2002, section 349.12, 70.10 subdivision 25, is amended to read: 70.11 Subd. 25. [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 70.12 or more of the following: 70.13 (1) any expenditure by or contribution to a 501(c)(3) or 70.14 festival organization, as defined in subdivision 15a, provided 70.15 that the organization and expenditure or contribution are in 70.16 conformity with standards prescribed by the board under section 70.17 349.154, which standards must apply to both types of 70.18 organizations in the same manner and to the same extent; 70.19 (2) a contribution to an individual or family suffering 70.20 from poverty, homelessness, or physical or mental disability, 70.21 which is used to relieve the effects of that poverty, 70.22 homelessness, or disability; 70.23 (3) a contribution to an individual for treatment for 70.24 delayed posttraumatic stress syndrome or a contribution to a 70.25 program recognized by the Minnesota department of human services 70.26 for the education, prevention, or treatment of compulsive 70.27 gambling; 70.28 (4) a contribution to or expenditure on a public or private 70.29 nonprofit educational institution registered with or accredited 70.30 by this state or any other state; 70.31 (5) a contribution to a scholarship fund for defraying the 70.32 cost of education to individuals where the funds are awarded 70.33 through an open and fair selection process; 70.34 (6) activities by an organization or a government entity 70.35 which recognize humanitarian or military service to the United 70.36 States, the state of Minnesota, or a community, subject to rules 71.1 of the board, provided that the rules must not include mileage 71.2 reimbursements in the computation of the per occasion 71.3 reimbursement limit and must impose no aggregate annual limit on 71.4 the amount of reasonable and necessary expenditures made to 71.5 support: 71.6 (i) members of a military marching or color guard unit for 71.7 activities conducted within the state; 71.8 (ii) members of an organization solely for services 71.9 performed by the members at funeral services; or 71.10 (iii) members of military marching, color guard, or honor 71.11 guard units may be reimbursed for participating in color guard, 71.12 honor guard, or marching unit events within the state or states 71.13 contiguous to Minnesota at a per participant rate of up to $35 71.14 per occasion; 71.15 (7) recreational, community, and athletic facilities and 71.16 activities intended primarily for persons under age 21, provided 71.17 that such facilities and activities do not discriminate on the 71.18 basis of gender and the organization complies with section 71.19 349.154; 71.20 (8) payment of local taxes authorized under this chapter, 71.21 taxes imposed by the United States on receipts from lawful 71.22 gambling, the taxes imposed by section 297E.02, subdivisions 1, 71.23 4, 5, and 6, and the tax imposed on unrelated business income by 71.24 section 290.05, subdivision 3; 71.25 (9) payment of real estate taxes and assessments on 71.26 permitted gambling premises wholly owned by the licensed 71.27 organization paying the taxes, or wholly leased by a licensed 71.28 veterans organization under a national charter recognized under 71.29 section 501(c)(19) of the Internal Revenue Code, not to exceed: 71.30 (i) for premises used for bingo, the amount that an 71.31 organization may expend under board rules on rent for bingo; and 71.32 (ii) $35,000 per year for premises used for other forms of 71.33 lawful gambling; 71.34 (10) a contribution to the United States, this state or any 71.35 of its political subdivisions, or any agency or instrumentality 71.36 thereof other than a direct contribution to a law enforcement or 72.1 prosecutorial agency; 72.2 (11) a contribution to or expenditure by a nonprofit 72.3 organization which is a church or body of communicants gathered 72.4 in common membership for mutual support and edification in 72.5 piety, worship, or religious observances; 72.6 (12) payment of the reasonable costs of an audit required 72.7 in section 297E.06, subdivision 4, provided the annual audit is 72.8 filed in a timely manner with the department of revenue; 72.9 (13) a contribution to or expenditure on a wildlife 72.10 management project that benefits the public at-large, provided 72.11 that the state agency with authority over that wildlife 72.12 management project approves the project before the contribution 72.13 or expenditure is made; 72.14 (14) expenditures, approved by the commissioner of natural 72.15 resources, by an organization for grooming and maintaining 72.16 snowmobile trails and all-terrain vehicle trails that are (1) 72.17 grant-in-aid trails established under section 85.019, or (2) 72.18 other trails open to public use, including purchase or lease of 72.19 equipment for this purpose; or 72.20 (15) conducting nutritional programs, food shelves, and 72.21 congregate dining programs primarily for persons who are age 62 72.22 or older or disabled; 72.23 (16) a contribution to a community arts organization, or an 72.24 expenditure to sponsor arts programs in the community, including 72.25 but not limited to visual, literary, performing, or musical 72.26 arts; 72.27 (17) payment of heat, water, sanitation, telephone, and 72.28 other utility bills for a building owned or leased by, and used 72.29 as the primary headquarters of, a veterans organization;or72.30 (18) expenditure by a veterans organization of up to $5,000 72.31 in a calendar year in net costs to the organization for meals 72.32 and other membership events, limited to members and spouses, 72.33 held in recognition of military service; or 72.34 (19) payment of fees authorized under this chapter imposed 72.35 by the state of Minnesota to conduct lawful gambling in 72.36 Minnesota. 73.1 (b) Notwithstanding paragraph (a), "lawful purpose" does 73.2 not include: 73.3 (1) any expenditure made or incurred for the purpose of 73.4 influencing the nomination or election of a candidate for public 73.5 office or for the purpose of promoting or defeating a ballot 73.6 question; 73.7 (2) any activity intended to influence an election or a 73.8 governmental decision-making process; 73.9 (3) the erection, acquisition, improvement, expansion, 73.10 repair, or maintenance of real property or capital assets owned 73.11 or leased by an organization, unless the board has first 73.12 specifically authorized the expenditures after finding that (i) 73.13 the real property or capital assets will be used exclusively for 73.14 one or more of the purposes in paragraph (a); (ii) with respect 73.15 to expenditures for repair or maintenance only, that the 73.16 property is or will be used extensively as a meeting place or 73.17 event location by other nonprofit organizations or community or 73.18 service groups and that no rental fee is charged for the use; 73.19 (iii) with respect to expenditures, including a mortgage payment 73.20 or other debt service payment, for erection or acquisition only, 73.21 that the erection or acquisition is necessary to replace with a 73.22 comparable building, a building owned by the organization and 73.23 destroyed or made uninhabitable by fire or natural disaster, 73.24 provided that the expenditure may be only for that part of the 73.25 replacement cost not reimbursed by insurance; (iv) with respect 73.26 to expenditures, including a mortgage payment or other debt 73.27 service payment, for erection or acquisition only, that the 73.28 erection or acquisition is necessary to replace with a 73.29 comparable building a building owned by the organization that 73.30 was acquired from the organization by eminent domain or sold by 73.31 the organization to a purchaser that the organization reasonably 73.32 believed would otherwise have acquired the building by eminent 73.33 domain, provided that the expenditure may be only for that part 73.34 of the replacement cost that exceeds the compensation received 73.35 by the organization for the building being replaced; or (v) with 73.36 respect to an expenditure to bring an existing building into 74.1 compliance with the Americans with Disabilities Act under item 74.2 (ii), an organization has the option to apply the amount of the 74.3 board-approved expenditure to the erection or acquisition of a 74.4 replacement building that is in compliance with the Americans 74.5 with Disabilities Act; 74.6 (4) an expenditure by an organization which is a 74.7 contribution to a parent organization, foundation, or affiliate 74.8 of the contributing organization, if the parent organization, 74.9 foundation, or affiliate has provided to the contributing 74.10 organization within one year of the contribution any money, 74.11 grants, property, or other thing of value; 74.12 (5) a contribution by a licensed organization to another 74.13 licensed organization unless the board has specifically 74.14 authorized the contribution. The board must authorize such a 74.15 contribution when requested to do so by the contributing 74.16 organization unless it makes an affirmative finding that the 74.17 contribution will not be used by the recipient organization for 74.18 one or more of the purposes in paragraph (a); or 74.19 (6) a contribution to a statutory or home rule charter 74.20 city, county, or town by a licensed organization with the 74.21 knowledge that the governmental unit intends to use the 74.22 contribution for a pension or retirement fund. 74.23 Sec. 86. Minnesota Statutes 2002, section 349.151, 74.24 subdivision 4, is amended to read: 74.25 Subd. 4. [POWERS AND DUTIES.] (a) The board has the 74.26 following powers and duties: 74.27 (1) to regulate lawful gambling to ensure it is conducted 74.28 in the public interest; 74.29 (2) to issue licenses to organizations, 74.30 distributors, distributor salespersons, bingo halls, 74.31 manufacturers, and gambling managers; 74.32 (3) to collect and deposit license, permit, and 74.33 registration fees due under this chapter; 74.34 (4) to receive reports required by this chapter and inspect 74.35 all premises, records, books, and other documents of 74.36 organizations, distributors, manufacturers, and bingo halls to 75.1 insure compliance with all applicable laws and rules; 75.2 (5) to make rules authorized by this chapter; 75.3 (6) to register gambling equipment and issue registration 75.4 stamps; 75.5 (7) to provide by rule for the mandatory posting by 75.6 organizations conducting lawful gambling of rules of play and 75.7 the odds and/or house percentage on each form of lawful 75.8 gambling; 75.9 (8) to report annually to the governor and legislature on 75.10 its activities and on recommended changes in the laws governing 75.11 gambling; 75.12 (9) to impose civil penalties of not more than $500 per 75.13 violation on organizations, distributors,employees eligible to75.14make sales on behalf of adistributor salespersons, 75.15 manufacturers, bingo halls, and gambling managers for failure to 75.16 comply with any provision of this chapter or any rule or order 75.17 of the board; 75.18 (10) to issue premises permits to organizations licensed to 75.19 conduct lawful gambling; 75.20 (11) to delegate to the director the authority to issue or 75.21 deny license and premises permit applications and renewals under 75.22 criteria established by the board; 75.23 (12) to suspend or revoke licenses and premises permits of 75.24 organizations, distributors, distributor salespersons, 75.25 manufacturers, bingo halls, or gambling managers as provided in 75.26 this chapter; 75.27 (13) to register employees of organizations licensed to 75.28 conduct lawful gambling; 75.29 (14) to require fingerprints from persons determined by 75.30 board rule to be subject to fingerprinting; 75.31 (15) to delegate to a compliance review group of the board 75.32 the authority to investigate alleged violations, issue consent 75.33 orders, and initiate contested cases on behalf of the board; 75.34 (16) to order organizations, distributors, distributor 75.35 salespersons, manufacturers, bingo halls, and gambling managers 75.36 to take corrective actions; and 76.1 (17) to take all necessary steps to ensure the integrity of 76.2 and public confidence in lawful gambling. 76.3 (b) The board, or director if authorized to act on behalf 76.4 of the board, may by citation assess any organization, 76.5 distributor, employee eligible to make sales on behalf of a 76.6 distributor, manufacturer, bingo hall licensee, or gambling 76.7 manager a civil penalty of not more than $500 per violation for 76.8 a failure to comply with any provision of this chapter or any 76.9 rule adopted or order issued by the board. Any organization, 76.10 distributor, bingo hall licensee, gambling manager, or 76.11 manufacturer assessed a civil penalty under this paragraph may 76.12 request a hearing before the board. Appeals of citations 76.13 imposing a civil penalty are not subject to the provisions of 76.14 the Administrative Procedure Act. 76.15 (c) Allfees andpenalties received by the board must be 76.16 deposited in the general fund. 76.17 (d) All fees imposed by the board under sections 349.16 to 76.18 349.165 must be deposited in the state treasury and credited to 76.19 a lawful gambling regulation account in the special revenue fund. 76.20 Receipts in this account are available for the operations of the 76.21 board up to the amount authorized in biennial appropriations 76.22 from the legislature. 76.23 Sec. 87. Minnesota Statutes 2002, section 349.151, 76.24 subdivision 4b, is amended to read: 76.25 Subd. 4b. [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 76.26 The board may by rule authorize but not require the use of 76.27 pull-tab dispensing devices. 76.28 (b) Rules adopted under paragraph (a): 76.29 (1) must limit the number of pull-tab dispensing devices on 76.30 any permitted premises to three; and 76.31 (2) must limit the use of pull-tab dispensing devices to a 76.32 permitted premises which is (i) a licensed premises for on-sales 76.33 of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 76.34 licensed bingo hall that allows gambling only by persons 18 76.35 years or older. 76.36 (c) Notwithstanding rules adopted under paragraph (b), 77.1 pull-tab dispensing devices may be used in establishments 77.2 licensed for the off-sale of intoxicating liquor, other than 77.3 drugstores and general food stores licensed under section 77.4 340A.405, subdivision 1. 77.5(d) The director may charge a manufacturer a fee of up to77.6$5,000 per pull-tab dispensing device to cover the costs of77.7services provided by an independent testing laboratory to77.8perform testing and analysis of pull-tab dispensing devices.77.9The director shall deposit in a separate account in the state77.10treasury all money the director receives as reimbursement for77.11the costs of services provided by independent testing77.12laboratories that have entered into contracts with the state to77.13perform testing and analysis of pull-tab dispensing devices.77.14Money in the account is appropriated to the director to pay the77.15costs of services under those contracts.77.16 Sec. 88. Minnesota Statutes 2002, section 349.155, 77.17 subdivision 3, is amended to read: 77.18 Subd. 3. [MANDATORY DISQUALIFICATIONS.] (a) In the case of 77.19 licenses for manufacturers, distributors, distributor 77.20 salespersons, bingo halls, and gambling managers, the board may 77.21 not issue or renew a license under this chapter, and shall 77.22 revoke a license under this chapter, if the applicant or 77.23 licensee, or a director, officer, partner, governor, or person 77.24 in a supervisory or management position of the applicant or 77.25 licensee, or an employee eligible to make sales on behalf of the77.26applicant or licensee: 77.27 (1) has ever been convicted of a felony or a crime 77.28 involving gambling; 77.29 (2) has ever been convicted of (i) assault, (ii) a criminal 77.30 violation involving the use of a firearm, or (iii) making 77.31 terroristic threats; 77.32 (3) is or has ever been connected with or engaged in an 77.33 illegal business; 77.34 (4) owes $500 or more in delinquent taxes as defined in 77.35 section 270.72; 77.36 (5) had a sales and use tax permit revoked by the 78.1 commissioner of revenue within the past two years; or 78.2 (6) after demand, has not filed tax returns required by the 78.3 commissioner of revenue. The board may deny or refuse to renew 78.4 a license under this chapter, and may revoke a license under 78.5 this chapter, if any of the conditions in this paragraph are 78.6 applicable to an affiliate or direct or indirect holder of more 78.7 than a five percent financial interest in the applicant or 78.8 licensee. 78.9 (b) In the case of licenses for organizations, the board 78.10 may not issue or renew a license under this chapter, and shall 78.11 revoke a license under this chapter, if the organization, or an 78.12 officer or member of the governing body of the organization: 78.13 (1) has been convicted of a felony or gross misdemeanor 78.14 within the five years before the issuance or renewal of the 78.15 license; 78.16 (2) has ever been convicted of a crime involving gambling; 78.17 or 78.18 (3) has had a license issued by the board or director 78.19 permanently revoked for violation of law or board rule. 78.20 Sec. 89. Minnesota Statutes 2002, section 349.16, 78.21 subdivision 6, is amended to read: 78.22 Subd. 6. [LICENSECLASSIFICATIONSFEES.]The board may78.23issue four classes of organization licenses: a class A license78.24authorizing all forms of lawful gambling; a class B license78.25authorizing all forms of lawful gambling except bingo; a class C78.26license authorizing bingo only, or bingo and pull-tabs if the78.27gross receipts for any combination of bingo and pull-tabs does78.28not exceed $50,000 per year; and a class D license authorizing78.29raffles only. The board shall not charge a fee for an78.30organization license.The board shall impose an annual fee of 78.31 $350 for an organization's license application. Organizations 78.32 that expect to receive less than $100,000 in gross annual 78.33 receipts may request from the board a waiver of organization 78.34 license fees. 78.35 Sec. 90. Minnesota Statutes 2002, section 349.161, 78.36 subdivision 1, is amended to read: 79.1 Subdivision 1. [PROHIBITED ACTS; LICENSES REQUIRED.] (a) 79.2 No person may: 79.3 (1) sell, offer for sale, or furnish gambling equipment for 79.4 use within the state other than for lawful gambling exempt or 79.5 excluded from licensing, except to an organization licensed for 79.6 lawful gambling; 79.7 (2) sell, offer for sale, or furnish gambling equipment for 79.8 use within the state without having obtained a distributor 79.9 license or a distributor salesperson license under this section; 79.10 (3) sell, offer for sale, or furnish gambling equipment for 79.11 use within the state that is not purchased or obtained from a 79.12 manufacturer or distributor licensed under this chapter; or 79.13 (4) sell, offer for sale, or furnish gambling equipment for 79.14 use within the state that has the same serial number as another 79.15 item of gambling equipment of the same type sold or offered for 79.16 sale or furnished for use in the state by that distributor. 79.17 (b) No licensed distributor salesperson may sell, offer for 79.18 sale, or furnish gambling equipment for use within the state 79.19 without being employed by a licensed distributor or owning a 79.20 distributor license. 79.21 Sec. 91. Minnesota Statutes 2002, section 349.161, 79.22 subdivision 4, is amended to read: 79.23 Subd. 4. [FEES.] (a) Theinitialannual fee for a 79.24 distributor's license is$3,500$6,000.The initial term of a79.25distributor's license is one year. Renewal licenses under this79.26section are valid for two years and the fee for the renewal79.27license is $7,000.79.28 (b) The annual fee for a distributor salesperson license is 79.29 $100. 79.30 Sec. 92. Minnesota Statutes 2002, section 349.161, 79.31 subdivision 5, is amended to read: 79.32 Subd. 5. [PROHIBITION.] (a) No distributor, distributor 79.33 salesperson, or other employee of a distributor, may also be a 79.34 wholesale distributor of alcoholic beverages or an employee of a 79.35 wholesale distributor of alcoholic beverages. 79.36 (b) No distributor, distributor salesperson, or any 80.1 representative, agent, affiliate, or other employee of a 80.2 distributor, may: (1) be involved in the conduct of lawful 80.3 gambling by an organization; (2) keep or assist in the keeping 80.4 of an organization's financial records, accounts, and 80.5 inventories; or (3) prepare or assist in the preparation of tax 80.6 forms and other reporting forms required to be submitted to the 80.7 state by an organization. 80.8 (c) No distributor, distributor salesperson, or any 80.9 representative, agent, affiliate, or other employee of a 80.10 distributor may provide a lessor of gambling premises any 80.11 compensation, gift, gratuity, premium, or other thing of value. 80.12 (d) No distributor, distributor salesperson, or any 80.13 representative, agent, affiliate, or other employee of a 80.14 distributor may participate in any gambling activity at any 80.15 gambling site or premises where gambling equipment purchased 80.16 from that distributor or distributor salesperson is being used 80.17 in the conduct of lawful gambling. 80.18 (e) No distributor, distributor salesperson, or any 80.19 representative, agent, affiliate, or other employee of a 80.20 distributor may alter or modify any gambling equipment, except 80.21 to add a "last ticket sold" prize sticker. 80.22 (f) No distributor, distributor salesperson, or any 80.23 representative, agent, affiliate, or other employee of a 80.24 distributor may: (1) recruit a person to become a gambling 80.25 manager of an organization or identify to an organization a 80.26 person as a candidate to become gambling manager for the 80.27 organization; or (2) identify for an organization a potential 80.28 gambling location. 80.29 (g) No distributor or distributor salesperson may purchase 80.30 gambling equipment for resale to a person for use within the 80.31 state from any person not licensed as a manufacturer under 80.32 section 349.163. 80.33 (h) No distributor or distributor salesperson may sell 80.34 gambling equipment to any person for use in Minnesota other than 80.35 (i) a licensed organization or organization excluded or exempt 80.36 from licensing, or (ii) the governing body of an Indian tribe. 81.1 (i) No distributor or distributor salesperson may sell or 81.2 otherwise provide a pull-tab or tipboard deal with the symbol 81.3 required by section 349.163, subdivision 5, paragraph (h), 81.4 visible on the flare to any person other than in Minnesota to a 81.5 licensed organization or organization exempt from licensing. 81.6 Sec. 93. Minnesota Statutes 2002, section 349.162, 81.7 subdivision 1, is amended to read: 81.8 Subdivision 1. [STAMP REQUIRED.] (a) A distributor may not 81.9 sell, transfer, furnish, or otherwise provide to a person, and 81.10 no person may purchase, borrow, accept, or acquire from a 81.11 distributor gambling equipment for use within the state unless 81.12 the equipment has been registered with the board and has a 81.13 registration stamp affixed, except for gambling equipment not 81.14 stamped by the manufacturer pursuant to section 349.163, 81.15 subdivision 5 or 8.The board shall charge a fee of five cents81.16for each stamp.Each stamp must bear a registration number 81.17 assigned by the board.A distributor or manufacturer is81.18entitled to a refund for unused registration stamps and81.19replacement for registration stamps which are defective or81.20canceled by the distributor or manufacturer.81.21 (b) A manufacturer must return all unused registration 81.22 stamps in its possession to the board by February 1, 1995. No 81.23 manufacturer may possess unaffixed registration stamps after 81.24 February 1, 1995. 81.25 (c) After February 1, 1996, no person may possess any 81.26 unplayed pull-tab or tipboard deals with a registration stamp 81.27 affixed to the flare or any unplayed paddleticket cards with a 81.28 registration stamp affixed to the master flare. This paragraph 81.29 does not apply to unplayed pull-tab or tipboard deals with a 81.30 registration stamp affixed to the flare, or to unplayed 81.31 paddleticket cards with a registration stamp affixed to the 81.32 master flare, if the deals or cards are identified on a list of 81.33 existing inventory submitted by a licensed organization or a 81.34 licensed distributor, in a format prescribed by the commissioner 81.35 of revenue, to the commissioner of revenue on or before February 81.36 1, 1996. Gambling equipment kept in violation of this paragraph 82.1 is contraband under section 349.2125. 82.2 Sec. 94. Minnesota Statutes 2002, section 349.163, 82.3 subdivision 2, is amended to read: 82.4 Subd. 2. [LICENSE; FEE.]The initial license under this82.5section is valid for one year. The fee for the initial license82.6is $5,000. Renewal licenses under this section are valid for82.7two years and the fee for the renewal license is $10,000.The 82.8 annual fee for a manufacturer's license is $9,000. 82.9 Sec. 95. Minnesota Statutes 2002, section 349.163, 82.10 subdivision 6, is amended to read: 82.11 Subd. 6. [SAMPLES OF GAMBLING EQUIPMENT.] The board shall 82.12 require each licensed manufacturer to submit to the board one or 82.13 more samples of each item of gambling equipment the manufacturer 82.14 manufactures for use or resale in this state. The board shall 82.15 inspect and test all the equipment it deems necessary to 82.16 determine the equipment's compliance with law and board rules. 82.17 Samples required under this subdivision must be approved by the 82.18 board before the equipment being sampled is shipped into or sold 82.19 for use or resale in this state. The board shall impose a fee 82.20 of $25 for each item of gambling equipment that the manufacturer 82.21 submits for approval or for which the manufacturer requests 82.22 approval. The board shall impose a fee of $100 for each sample 82.23 of gambling equipment that it tests. The board may require 82.24 samples of gambling equipment to be tested by an independent 82.25 testing laboratory prior to submission to the board for 82.26 approval. All costs of testing by an independent testing 82.27 laboratory must be borne by the manufacturer. An independent 82.28 testing laboratory used by a manufacturer to test samples of 82.29 gambling equipment must be approved by the board before the 82.30 equipment is submitted to the laboratory for testing. The board 82.31 may request the assistance of the commissioner of public safety 82.32 and the director of the state lottery in performing the tests. 82.33 Sec. 96. Minnesota Statutes 2002, section 349.164, 82.34 subdivision 4, is amended to read: 82.35 Subd. 4. [FEES; TERM OF LICENSE.] Theinitialannual fee 82.36 for a bingo hall license is$2,500$4,000.An initial license83.1under this section is valid for one year. Renewal licenses83.2under this section are valid for two years and the fee for the83.3renewal license is $5,000.83.4 Sec. 97. Minnesota Statutes 2002, section 349.165, 83.5 subdivision 3, is amended to read: 83.6 Subd. 3. [FEES.] (a) The board may issuefour classes of83.7 premises permitscorresponding to the classes of licenses83.8authorizedto organizations licensed under section 349.16, 83.9 subdivision 6. The annual fee for eachclass ofpremises permit 83.10 is:$150. 83.11(1) $400 for a class A permit;83.12(2) $250 for a class B permit;83.13(3) $200 for a class C permit; and83.14(4) $150 for a class D permit.83.15(b) If a premises permit is issued during the second year83.16of an organization's license, the fee for each class of permit83.17is:83.18(1) $200 for a class A permit;83.19(2) $125 for a class B permit;83.20(3) $100 for a class C permit; and83.21(4) $75 for a class D permit.83.22 (b) In addition to the annual fee for a premises permit, an 83.23 organization must pay a monthly regulatory fee of 0.1 percent of 83.24 the organization's gross receipts from lawful gambling conducted 83.25 at that site. The fee must be reported and paid on a monthly 83.26 basis in a format as determined by the commissioner of revenue, 83.27 and remitted to the commissioner of revenue along with the 83.28 organization's monthly tax return for that premises. All 83.29 premises permit fees received by the commissioner of revenue 83.30 under this subdivision must be deposited in the lawful gambling 83.31 regulation account in the special revenue fund according to 83.32 section 349.151. Failure to pay the monthly premises permit 83.33 fees in a timely manner may result in disciplinary action by the 83.34 board. 83.35 Sec. 98. Minnesota Statutes 2002, section 349.166, 83.36 subdivision 1, is amended to read: 84.1 Subdivision 1. [EXCLUSIONS.] (a) Bingo may be conducted 84.2 without a license and without complying with sections 349.168, 84.3 subdivisions 1 and 2; 349.17, subdivisions 1, 4, and 5; 349.18, 84.4 subdivision 1; and 349.19, if it is conducted: 84.5 (1) by an organization in connection with a county fair, 84.6 the state fair, or a civic celebration and is not conducted for 84.7 more than 12 consecutive days and is limited to no more than 84.8 four separate applications for activities applied for and 84.9 approved in a calendar year; or 84.10 (2) by an organization that conducts four or fewer bingo 84.11 occasions in a calendar year. 84.12 An organization that holds a license to conduct lawful 84.13 gambling under this chapter may not conduct bingo under this 84.14 subdivision. 84.15 (b) Bingo may be conducted within a nursing home or a 84.16 senior citizen housing project or by a senior citizen 84.17 organization if the prizes for a single bingo game do not exceed 84.18 $10, total prizes awarded at a single bingo occasion do not 84.19 exceed $200, no more than two bingo occasions are held by the 84.20 organization or at the facility each week, only members of the 84.21 organization or residents of the nursing home or housing project 84.22 are allowed to play in a bingo game, no compensation is paid for 84.23 any persons who conduct the bingo, and a manager is appointed to 84.24 supervise the bingo. Bingo conducted under this paragraph is 84.25 exempt from sections 349.11 to 349.23, and the board may not 84.26 require an organization that conducts bingo under this 84.27 paragraph, or the manager who supervises the bingo, to register 84.28 or file a report with the board. The gross receipts from bingo 84.29 conducted under the limitations of this subdivision are exempt 84.30 from taxation under chapter 297A. 84.31 (c) Raffles may be conducted by an organization without a 84.32 license and without complying with sections 349.154 to 349.165 84.33 and 349.167 to 349.213 if the value of all raffle prizes awarded 84.34 by the organization in a calendar year does not 84.35 exceed$750$1,500. 84.36 (d) Except as provided in paragraph (b), the organization 85.1 must maintain all required records of excluded gambling activity 85.2 for 3-1/2 years. 85.3 Sec. 99. Minnesota Statutes 2002, section 349.166, 85.4 subdivision 2, is amended to read: 85.5 Subd. 2. [EXEMPTIONS.] (a) Lawful gambling may be 85.6 conducted by an organization without a license and without 85.7 complying with sections 349.168, subdivisions 1 and 2; 349.17, 85.8 subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if: 85.9 (1) the organization conducts lawful gambling on five or 85.10 fewer days in a calendar year; 85.11 (2) the organization does not award more than $50,000 in 85.12 prizes for lawful gambling in a calendar year; 85.13 (3) the organization pays a fee of$25$50 to the board, 85.14 notifies the board in writing not less than 30 days before each 85.15 lawful gambling occasion of the date and location of the 85.16 occasion, or 60 days for an occasion held in the case of a city 85.17 of the first class, the types of lawful gambling to be 85.18 conducted, the prizes to be awarded, and receives an exemption 85.19 identification number; 85.20 (4) the organization notifies the local government unit 30 85.21 days before the lawful gambling occasion, or 60 days for an 85.22 occasion held in a city of the first class; 85.23 (5) the organization purchases all gambling equipment and 85.24 supplies from a licensed distributor; and 85.25 (6) the organization reports to the board, on a single-page 85.26 form prescribed by the board, within 30 days of each gambling 85.27 occasion, the gross receipts, prizes, expenses, expenditures of 85.28 net profits from the occasion, and the identification of the 85.29 licensed distributor from whom all gambling equipment was 85.30 purchased. 85.31 (b) If the organization fails to file a timely report as 85.32 required by paragraph (a), clause (3) or (6), the board shall 85.33 not issue any authorization, license, or permit to the 85.34 organization to conduct lawful gambling on an exempt, excluded, 85.35 or licensed basis until the report has been filed. 85.36 (c) Merchandise prizes must be valued at their fair market 86.1 value. 86.2 (d) Unused pull-tab and tipboard deals must be returned to 86.3 the distributor within seven working days after the end of the 86.4 lawful gambling occasion. The distributor must accept and pay a 86.5 refund for all returns of unopened and undamaged deals returned 86.6 under this paragraph. 86.7 (e) An organization that is exempt from taxation on 86.8 purchases of pull-tabs and tipboards under section 297E.02, 86.9 subdivision 4, paragraph (b), clause (4), must return to the 86.10 distributor any tipboard or pull-tab deal no part of which is 86.11 used at the lawful gambling occasion for which it was purchased 86.12 by the organization. 86.13 (f) The organization must maintain all required records of 86.14 exempt gambling activity for 3-1/2 years. 86.15 Sec. 100. [349.2113] [PRIZE PAYOUT LIMIT.] 86.16 On or after January 1, 2004, a licensed organization may 86.17 not put into play a pull-tab or tipboard deal that provides for 86.18 a prize payout of greater than 85 percent of the ideal gross of 86.19 the deal. 86.20 Sec. 101. Minnesota Statutes 2002, section 349A.08, 86.21 subdivision 5, is amended to read: 86.22 Subd. 5. [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 86.23 lottery must be claimed by the winner within one year of the 86.24 date of the drawing at which the prize was awarded or the last 86.25 day sales were authorized for a game where a prize was 86.26 determined in a manner other than by means of a drawing. If a 86.27 valid claim is not made for a prize payable directly by the 86.28 lottery by the end of this period, the prize money is considered 86.29 unclaimed and the winner of the prize shall have no further 86.30 claim to the prize. A prize won by a person who purchased the 86.31 winning ticket in violation of section 349A.12, subdivision 1, 86.32 or won by a person ineligible to be awarded a prize under 86.33 subdivision 7 must be treated as an unclaimed prize under this 86.34 section. The directorshallmust transfer70 percent ofall 86.35 unclaimed prize money at the end of each fiscal year from the 86.36 lottery cash flow accountas follows: of the 70 percent, 4087.1percent must be transferred to the Minnesota environment and87.2natural resources trust fund and 60 percent must be transferred87.3 to the general fund.The remaining 30 percent of the unclaimed87.4prize money must be added by the director to prize pools of87.5subsequent lottery games.87.6 Sec. 102. Minnesota Statutes 2002, section 403.02, 87.7 subdivision 10, is amended to read: 87.8 Subd. 10. [COMMISSIONER.] "Commissioner" means the 87.9 commissioner ofadministrationpublic safety. 87.10 Sec. 103. Minnesota Statutes 2002, section 403.06, is 87.11 amended to read: 87.12 403.06 [DEPARTMENT DUTIES.] 87.13 Subdivision 1. [DUTIES.] (a) Thedepartment of87.14administrationcommissioner shall coordinate the maintenance of 87.15 911 systems. Thedepartmentcommissioner shall aid counties in 87.16 the formulation of concepts, methods, and procedures which will 87.17 improve the operation and maintenance of 911 systems. The 87.18departmentcommissioner shall establish procedures for 87.19 determining and evaluating requests for variations from the 87.20 established design standards. Thedepartmentcommissioner shall 87.21 respond to requests by wireless or wire line telecommunications 87.22 service providers or by counties or other governmental agencies 87.23 for system agreements, contracts, and tariff language promptly 87.24 and no later than within 45 days of the request unless otherwise 87.25 mutually agreed to by the parties. 87.26 (b) Thedepartmentcommissioner shall prepare a biennial 87.27 budget for maintaining the 911 system. By December 15 of each 87.28 year, thedepartmentcommissioner shallprepare an annual87.29 submit a report to the legislature detailing the expenditures 87.30 for maintaining the 911 system, the 911 fees collected, the 87.31 balance of the 911 fund, and the 911-related administrative 87.32 expenses of thedepartmentcommissioner. Thedepartment87.33 commissioner is authorized to expendfundsmoney thathavehas 87.34 been appropriated to pay for the maintenance, enhancements, and 87.35 expansion of the 911 system. 87.36 Subd. 2. [WAIVER.] Any county, other governmental agency, 88.1 wireless telecommunications service provider, or wire line 88.2 telecommunications service provider may petition thedepartment88.3of administrationcommissioner for a waiver of all or portions 88.4 of the requirements. A waiver may be granted upon a 88.5 demonstration by the petitioner that the requirement is 88.6 economically infeasible. 88.7 Sec. 104. Minnesota Statutes 2002, section 403.07, 88.8 subdivision 1, is amended to read: 88.9 Subdivision 1. [RULES.] Thedepartment of88.10administrationcommissioner shall establish and adopt in 88.11 accordance with chapter 14, rules for the administration of this 88.12 chapter and for the development of 911 systems in the state 88.13 including: 88.14 (1) design standards for 911 systems incorporating the 88.15 standards adopted pursuant to subdivision 2 for the seven-county 88.16 metropolitan area; and 88.17 (2) a procedure for determining and evaluating requests for 88.18 variations from the established design standards. 88.19 Sec. 105. Minnesota Statutes 2002, section 403.07, 88.20 subdivision 2, is amended to read: 88.21 Subd. 2. [DESIGN STANDARDS.] The metropolitan 911 board 88.22 shall establish and adopt design standards for the metropolitan 88.23 area 911 system and transmit them to thedepartment of88.24administrationcommissioner for incorporation into the rules 88.25 adopted pursuant to this section. 88.26 Sec. 106. Minnesota Statutes 2002, section 403.07, 88.27 subdivision 3, is amended to read: 88.28 Subd. 3. [DATABASE.] In 911 systems that have been 88.29 approved by thedepartment of administrationcommissioner for a 88.30 local location identification database, each wire line 88.31 telecommunications service provider shall provide current 88.32 customer names, service addresses, and telephone numbers to each 88.33 public safety answering point within the 911 system and shall 88.34 update the information according to a schedule prescribed by the 88.35 county 911 plan. Information provided under this subdivision 88.36 must be provided in accordance with the transactional record 89.1 disclosure requirements of the federal Electronic Communications 89.2 Privacy Act of 1986, United States Code, title 18, section 2703, 89.3 subsection (c), paragraph (1), subparagraph (B)(iv). 89.4 Sec. 107. Minnesota Statutes 2002, section 403.09, 89.5 subdivision 1, is amended to read: 89.6 Subdivision 1. [DEPARTMENT AUTHORITY.] At the request of 89.7 thedepartment of administrationcommissioner of public safety, 89.8 the attorney general may commence proceedings in the district 89.9 court against any person or public or private body to enforce 89.10 the provisions of this chapter. 89.11 Sec. 108. Minnesota Statutes 2002, section 403.11, is 89.12 amended to read: 89.13 403.11 [911 SYSTEM COST ACCOUNTING REQUIREMENTS; FEE.] 89.14 Subdivision 1. [EMERGENCY TELECOMMUNICATIONS SERVICE FEE.] 89.15 (a) Each customer of a wireless or wire line telecommunications 89.16 service provider that furnishes service capable of originating a 89.17 911 emergency telephone call is assessed a fee to cover the 89.18 costs of ongoing maintenance and related improvements for 89.19 trunking and central office switching equipment for 911 89.20 emergency telecommunications service, plus administrative and 89.21 staffing costs of thedepartment of administrationcommissioner 89.22 related to managing the 911 emergency telecommunications service 89.23 program. Recurring charges by a wire line telecommunications 89.24 service provider for updating the information required by 89.25 section 403.07, subdivision 3, must be paid by the 89.26 commissionerof administrationif the wire line 89.27 telecommunications service provider is included in an approved 89.28 911 plan and the charges are made pursuant to tariff, price 89.29 list, or contract.The commissioner of administration shall89.30transfer an amount equal to two cents a month fromThe fee 89.31 assessed under this sectionon wireless telecommunications89.32services to the commissioner of public safetymust also be used 89.33 for the purpose of offsetting the costs, including 89.34 administrative and staffing costs, incurred by the state patrol 89.35 division of the department of public safety in handling 911 89.36 emergency calls made from wireless phones. 90.1 (b) Money remaining in the 911 emergency telecommunications 90.2 service account after all other obligations are paid must not 90.3 cancel and is carried forward to subsequent years and may be 90.4 appropriated from time to time to the commissionerof90.5administrationto provide financial assistance to counties for 90.6 the improvement of local emergency telecommunications services. 90.7 The improvements may include providing access to 911 service for 90.8 telecommunications service subscribers currently without access 90.9 and upgrading existing 911 service to include automatic number 90.10 identification, local location identification, automatic 90.11 location identification, and other improvements specified in 90.12 revised county 911 plans approved by thedepartmentcommissioner. 90.13 (c) The fee may not be less than eight cents nor more than 90.143340 cents a month for each customer access line or other basic 90.15 access service, including trunk equivalents as designated by the 90.16 public utilities commission for access charge purposes and 90.17 including wireless telecommunications services. With the 90.18 approval of the commissioner of finance, the commissioner of 90.19administrationpublic safety shall establish the amount of the 90.20 fee within the limits specified and inform the companies and 90.21 carriers of the amount to be collected. When the revenue bonds 90.22 authorized under section 473.898, subdivision 1, have been fully 90.23 paid or defeased, the commissioner shall reduce the fee to 90.24 reflect that debt service on the bonds is no longer needed. The 90.25 commissioner shall provide companies and carriers a minimum of 90.26 45 days' notice of each fee change.For fiscal year 2003, the90.27commissioner of administration shall provide a minimum of 3590.28days' notice of each fee change.The fee must be the same for 90.29 all customers. 90.30 (d) The fee must be collected by each wireless or wire line 90.31 telecommunications service provider subject to the fee. Fees 90.32 are payable to and must be submitted to the commissionerof90.33administrationmonthly before the 25th of each month following 90.34 the month of collection, except that fees may be submitted 90.35 quarterly if less than $250 a month is due, or annually if less 90.36 than $25 a month is due. Receipts must be deposited in the 91.1 state treasury and credited to a 911 emergency 91.2 telecommunications service account in the special revenue fund. 91.3 The money in the account may only be used for 911 91.4 telecommunications servicesas provided in paragraph (a). 91.5 (e) This subdivision does not apply to customers of 91.6 interexchange carriers. 91.7 (f) The installation and recurring charges for integrating 91.8 wireless 911 calls into enhanced 911 systems must be paid by the 91.9 commissioner if the 911 service provider is included in the 91.10 statewide design plan and the charges are made pursuant to 91.11 tariff, price list, or contract. 91.12 Subd. 3. [METHOD OF PAYMENT.] (a) Any wireless or wire 91.13 line telecommunications service provider incurring reimbursable 91.14 costs under subdivision 1 shall submit an invoice itemizing rate 91.15 elements by county or service area to the commissionerof91.16administrationfor 911 services furnished under tariff, price 91.17 list, or contract. Any wireless or wire line telecommunications 91.18 service provider is eligible to receive payment for 911 services 91.19 rendered according to the terms and conditions specified in the 91.20 contract. Competitive local exchange carriers holding 91.21 certificates of authority from the public utilities commission 91.22 are eligible to receive payment for recurring 911 services 91.23 provided after July 1, 2001. The commissioner shall pay the 91.24 invoice within 30 days following receipt of the invoice unless 91.25 the commissioner notifies the service provider that the 91.26 commissioner disputes the invoice. 91.27 (b) The commissionerof administrationshall estimate the 91.28 amount required to reimburse wireless and wire line 91.29 telecommunications service providers for the state's obligations 91.30 under subdivision 1 and the governor shall include the estimated 91.31 amount in the biennial budget request. 91.32 Subd. 3a. [TIMELY CERTIFICATION.] A certification must be 91.33 submitted to the commissionerof administrationno later than 91.34 two years after commencing a new or additional eligible 911 91.35 service. Any wireless or wire line telecommunications service 91.36 provider incurring reimbursable costs under this section at any 92.1 time before January 1, 2003, may certify those costs for payment 92.2 to the commissionerof administrationaccording to this section 92.3 for a period of 90 days after January 1, 2003. During this 92.4 period, the commissionerof administrationshall reimburse any 92.5 wireless or wire line telecommunications service provider for 92.6 approved, certified costs without regard to any contrary 92.7 provision of this subdivision. 92.8 Subd. 3b. [CERTIFICATION.] All wireless and wire line 92.9 telecommunications service providers shall submit a 92.10 self-certification form signed by an officer of the company to 92.11 thedepartmentcommissioner with invoices for payment of an 92.12 initial or changed service described in the service provider's 92.13 911 contract. The self-certification shall affirm that the 911 92.14 service contracted for is being provided and the costs invoiced 92.15 for the service are true and correct. All certifications are 92.16 subject to verification and audit. 92.17 Subd. 3c. [AUDIT.] If the commissionerof administration92.18 determines that an audit is necessary to document the 92.19 certification described in subdivision 3b, the wireless or wire 92.20 line telecommunications service provider must contract with an 92.21 independent certified public accountant to conduct the audit. 92.22 The audit must be conducted according to generally accepted 92.23 accounting principles. The wireless or wire line 92.24 telecommunications service provider is responsible for any costs 92.25 associated with the audit. 92.26 Subd. 4. [LOCAL RECURRING COSTS.] Recurring costs of 92.27 telecommunications equipment and services at public safety 92.28 answering points must be borne by the local governmental agency 92.29 operating the public safety answering point or allocated 92.30 pursuant to section 403.10, subdivision 3. Costs attributable 92.31 to local government electives for services not otherwise 92.32 addressed under section 403.11 or 403.113 must be borne by the 92.33 governmental agency requesting the elective service. 92.34 Subd. 5. [TARIFF NOTIFICATION.] Wire line 92.35 telecommunications service providers or wireless 92.36 telecommunications service providers holding eligible 93.1 telecommunications carrier status shall give notice to the 93.2department of administrationcommissioner and any other affected 93.3 governmental agency of tariff or price list changes related to 93.4 911 service at the same time that the filing is made with the 93.5 public utilities commission. 93.6 Sec. 109. Minnesota Statutes 2002, section 403.113, is 93.7 amended to read: 93.8 403.113 [ENHANCED 911 SERVICE COSTS; FEE.] 93.9 Subdivision 1. [FEE.] (a) Each customer receiving service 93.10 from a wireless or wire line telecommunications service provider 93.11 is assessed a fee to fund implementation, operation, 93.12 maintenance, enhancement, and expansion of enhanced 911 service, 93.13 including acquisition of necessary equipment and the costs of 93.14 the commissioner to administer the program. The actual fee 93.15 assessed under section 403.11 and the enhanced 911 service fee 93.16 must be collected as one amount and may not exceed the amount 93.17 specified in section 403.11, subdivision 1, paragraph (c). 93.18 (b) The enhanced 911 service fee must be collected and 93.19 deposited in the same manner as the fee in section 403.11 and 93.20 used solely for the purposes of paragraph (a) and subdivision 3. 93.21 (c) The commissionerof the department of administration, 93.22 in consultation with counties and 911 system users, shall 93.23 determine the amount of the enhanced 911 service feeand. The 93.24 fee must include at least 10 cents per month to be distributed 93.25 under subdivision 2. The commissioner shall inform wireless and 93.26 wire line telecommunications service providers that provide 93.27 service capable of originating a 911 emergency telephone call of 93.28 the total amount of the 911 service fees in the same manner as 93.29 provided in section 403.11. 93.30 Subd. 2. [DISTRIBUTION OF MONEY.] (a) After payment of the 93.31 costs of thedepartment of administrationcommissioner to 93.32 administer the program, the commissioner shall distribute the 93.33 money collected under this section as follows: 93.34 (1) one-half of the amount equally to all qualified 93.35 counties, and after October 1, 1997, to all qualified counties, 93.36 existing ten public safety answering points operated by the 94.1 Minnesota state patrol, and each governmental entity operating 94.2 the individual public safety answering points serving the 94.3 metropolitan airports commission, the Red Lake Indian 94.4 Reservation, and the University of Minnesota police department; 94.5 and 94.6 (2) the remaining one-half to qualified counties and cities 94.7 with existing 911 systems based on each county's or city's 94.8 percentage of the total population of qualified counties and 94.9 cities. The population of a qualified city with an existing 94.10 system must be deducted from its county's population when 94.11 calculating the county's share under this clause if the city 94.12 seeks direct distribution of its share. 94.13 (b) A county's share under subdivision 1 must be shared pro 94.14 rata between the county and existing city systems in the 94.15 county. A county or city or other governmental entity as 94.16 described in paragraph (a), clause (1), shall deposit money 94.17 received under this subdivision in an interest-bearing fund or 94.18 account separate from the governmental entity's general fund and 94.19 may use money in the fund or account only for the purposes 94.20 specified in subdivision 3. 94.21 (c) A county or city or other governmental entity as 94.22 described in paragraph (a), clause (1), is not qualified to 94.23 share in the distribution of money for enhanced 911 service if 94.24 it has not implemented enhanced 911 service before December 31, 94.25 1998. 94.26 (d) For the purposes of this subdivision, "existing city 94.27 system" means a city 911 system that provides at least basic 911 94.28 service and that was implemented on or before April 1, 1993. 94.29 Subd. 3. [LOCAL EXPENDITURES.] (a) Money distributed under 94.30 subdivision 2 for enhanced 911 service may be spent on enhanced 94.31 911 system costs for the purposes stated in subdivision 1, 94.32 paragraph (a). In addition, money may be spent to lease, 94.33 purchase, lease-purchase, or maintain enhanced 911 equipment, 94.34 including telephone equipment; recording equipment; computer 94.35 hardware; computer software for database provisioning, 94.36 addressing, mapping, and any other software necessary for 95.1 automatic location identification or local location 95.2 identification; trunk lines; selective routing equipment; the 95.3 master street address guide; dispatcher public safety answering 95.4 point equipment proficiency and operational skills; pay for 95.5 long-distance charges incurred due to transferring 911 calls to 95.6 other jurisdictions; and the equipment necessary within the 95.7 public safety answering point for community alert systems and to 95.8 notify and communicate with the emergency services requested by 95.9 the 911 caller. 95.10 (b) Money distributed for enhanced 911 service may not be 95.11 spent on: 95.12 (1) purchasing or leasing of real estate or cosmetic 95.13 additions to or remodeling of communications centers; 95.14 (2) mobile communications vehicles, fire engines, 95.15 ambulances, law enforcement vehicles, or other emergency 95.16 vehicles; 95.17 (3) signs, posts, or other markers related to addressing or 95.18 any costs associated with the installation or maintenance of 95.19 signs, posts, or markers. 95.20 Subd. 4. [AUDITS.] Each county and city or other 95.21 governmental entity as described in subdivision 2, paragraph 95.22 (a), clause (1), shall conduct an annual audit on the use of 95.23 funds distributed to it for enhanced 911 service. A copy of 95.24 each audit report must be submitted to the commissionerof95.25administration. 95.26 Sec. 110. Minnesota Statutes 2002, section 458D.17, 95.27 subdivision 5, is amended to read: 95.28 Subd. 5. [AUDIT.] The board shall provide for and pay the 95.29 cost of an independent annual audit of its official books and 95.30 records by the statepublic examinerauditor or a certified 95.31 public accountant. 95.32 Sec. 111. Minnesota Statutes 2002, section 471.696, is 95.33 amended to read: 95.34 471.696 [FISCAL YEAR; DESIGNATION.] 95.35 Beginning in 1979, the fiscal year of a city and all of its 95.36 funds shall be the calendar year, except that a city may, by 96.1 resolution, provide that the fiscal year for city-owned nursing 96.2 homes be the reporting year designated by the commissioner of 96.3 human services. Beginning in 1994, the fiscal year of a town 96.4 and all of its funds shall be the calendar year.The state96.5auditor may upon request of a town and a showing of inability to96.6conform, extend the deadline for compliance with this section96.7for one year.96.8 Sec. 112. Minnesota Statutes 2002, section 471.999, is 96.9 amended to read: 96.10 471.999 [REPORT TO LEGISLATURE.] 96.11 The commissioner of employee relations shall report to the 96.12 legislature by January 1 of each year on the status of 96.13 compliance with section 471.992, subdivision 1, by governmental 96.14 subdivisions. 96.15 The report must include a list of the political 96.16 subdivisions in compliance with section 471.992, subdivision 1, 96.17 and the estimated cost of compliance. The report must also 96.18 include a list of political subdivisions found by the 96.19 commissioner to be not in compliance, the basis for that 96.20 finding, recommended changes to achieve compliance, estimated 96.21 cost of compliance, and recommended penalties, if any. The 96.22 commissioner's report must include a list of subdivisions that 96.23 did not comply with the reporting requirements of this section. 96.24 The commissioner may request, and a subdivision shall provide, 96.25 any additional information needed for the preparation of a 96.26 report under this subdivision. 96.27 Notwithstanding any rule to the contrary, beginning in 96.28 2005, a political subdivision must report on its compliance with 96.29 the requirements of sections 471.991 to 471.999 no more 96.30 frequently than once every five years. No report from a 96.31 political subdivision is required for 2003 and 2004. 96.32 Sec. 113. Minnesota Statutes 2002, section 473.891, 96.33 subdivision 10, is amended to read: 96.34 Subd. 10. [SECOND PHASE.] "Second phase" means the 96.35 metropolitan radio boardbuilding subsystems forproviding 96.36 assistance to local government units building subsystems in the 97.1 metropolitan area that did not build their own subsystems in the 97.2 first phase. 97.3 Sec. 114. Minnesota Statutes 2002, section 473.891, is 97.4 amended by adding a subdivision to read: 97.5 Subd. 11. [THIRD PHASE.] "Third phase" means an extension 97.6 of the backbone system to serve the southeast and central 97.7 districts of the state patrol. 97.8 Sec. 115. Minnesota Statutes 2002, section 473.898, 97.9 subdivision 1, is amended to read: 97.10 Subdivision 1. [AUTHORIZATION.] After consulting with the 97.11 commissioner of finance, the council, if requested by a vote of 97.12 at least two-thirds of all of the members of themetropolitan97.13radio boardpublic safety radio communication system planning 97.14 committee established under section 473.097, may, by resolution, 97.15 authorize the issuance of its revenue bonds for any of the 97.16 following purposes to: 97.17 (1) provide funds for regionwide mutual aid and emergency 97.18 medical services communications; 97.19 (2) provide funds for the elements of the first phase of 97.20 the regionwide public safety radio communications system that 97.21 the board determines are of regionwide benefit and support 97.22 mutual aid and emergency medical services communication 97.23 including, but not limited to, costs of master controllers of 97.24 the backbone; 97.25 (3) provide money for the second phase of the public safety 97.26 radio communication system;or97.27 (4) provide money for the third phase of the public safety 97.28 radio communication system; 97.29 (5) to the extent money is available after meeting the 97.30 needs described in clauses (1) to (3), provide money to 97.31 reimburse local units of government for amounts expended for 97.32 capital improvements to the first phase system previously paid 97.33 for by the local government units; or 97.34 (6) refund bonds issued under this section. 97.35 Sec. 116. Minnesota Statutes 2002, section 473.898, 97.36 subdivision 3, is amended to read: 98.1 Subd. 3. [LIMITATIONS.] (a) The principal amount of the 98.2 bonds issued pursuant to subdivision 1, exclusive of any 98.3 original issue discount, shall not exceed the amount of 98.4 $10,000,000 plus the amount the council determines necessary to 98.5 pay the costs of issuance, fund reserves, debt service, and pay 98.6 for any bond insurance or other credit enhancement. 98.7 (b) In addition to the amount authorized under paragraph 98.8 (a), the council may issue bonds under subdivision 1 in a 98.9 principal amount of $3,306,300, plus the amount the council 98.10 determines necessary to pay the cost of issuance, fund reserves, 98.11 debt service, and any bond insurance or other credit 98.12 enhancement. The proceeds of bonds issued under this paragraph 98.13 may not be used to finance portable or subscriber radio sets. 98.14 (c) In addition to the amount authorized under paragraphs 98.15 (a) and (b), the council may issue bonds under subdivision 1 in 98.16 a principal amount of$12,000,000$18,000,000, plus the amount 98.17 the council determines necessary to pay the costs of issuance, 98.18 fund reserves, debt service, and any bond insurance or other 98.19 credit enhancement. The proceeds of bonds issued under this 98.20 paragraph must be used to pay up to3050 percent of the cost to 98.21 a local government unit of building a subsystem and may not be 98.22 used to finance portable or subscriber radio sets. The bond 98.23 proceeds may be used to make improvements to an existing 800 MHz 98.24 radio system that will interoperate with the regionwide public 98.25 safety radio communication system, provided that the 98.26 improvements conform to the board's plan and technical 98.27 standards. The council must time the sale and issuance of the 98.28 bonds so that the debt service on the bonds can be covered by 98.29 the additional revenue that will become available in the fiscal 98.30 year ending June 30, 2005, generated under section 403.11 and 98.31 appropriated under section 473.901. 98.32 (d) In addition to the amount authorized under paragraphs 98.33 (a) to (c), the council may issue bonds under subdivision 1 in a 98.34 principal amount of up to $27,000,000, plus the amount the 98.35 council determines necessary to pay the costs of issuance, fund 98.36 reserves, debt service, and any bond insurance or other credit 99.1 enhancement. The proceeds of bonds issued under this paragraph 99.2 are appropriated to the commissioner of public safety for phase 99.3 three of the public safety radio communication system. In 99.4 anticipation of the receipt by the commissioner of public safety 99.5 of the bond proceeds, the metropolitan radio board may advance 99.6 money from its operating appropriation to the commissioner of 99.7 public safety to pay for design and preliminary engineering for 99.8 phase three. The commissioner of public safety must return 99.9 these amounts to the metropolitan radio board when the bond 99.10 proceeds are received. 99.11 Sec. 117. Minnesota Statutes 2002, section 473.901, is 99.12 amended to read: 99.13 473.901 [ADMINISTRATION DEPARTMENTAPPROPRIATION; 99.14 TRANSFERS; BUDGET.] 99.15 Subdivision 1. [STANDING APPROPRIATION; COSTS COVERED.] 99.16 For each fiscal year beginning with the fiscal year commencing 99.17 July 1, 1997, the amount necessary to pay the following costs is 99.18 appropriated to the commissioner ofadministrationpublic safety 99.19 from the 911 emergencytelephonetelecommunications service 99.20 account established under section 403.11: 99.21 (1) debt service costs and reserves for bonds issued 99.22 pursuant to section 473.898; 99.23 (2) repayment of the right-of-way acquisition loans; 99.24 (3) costs of design, construction, maintenance of, and 99.25 improvements to those elements of the firstand, second, and 99.26 third phases that support mutual aid communications and 99.27 emergency medical services; 99.28 (4) recurring charges for leased sites and equipment for 99.29 those elements of the firstand, second, and third phases that 99.30 support mutual aid and emergency medical communication services; 99.31 or 99.32 (5) aid to local units of government for sites and 99.33 equipment in support of mutual aid and emergency medical 99.34 communications services. 99.35 This appropriation shall be used to pay annual debt service 99.36 costs and reserves for bonds issued pursuant to section 473.898 100.1 prior to use of fee money to pay other costs eligible under this 100.2 subdivision. In no event shall the appropriation for each 100.3 fiscal year exceed an amount equal to four cents a month for 100.4 each customer access line or other basic access service, 100.5 including trunk equivalents as designated by the public 100.6 utilities commission for access charge purposes and including 100.7 cellular and other nonwire access services, in the fiscal year. 100.8 Beginning July 1, 2004, this amount will increase to5.513 100.9 cents a month. 100.10 Subd. 2. [RADIO BOARD BUDGET.] The metropolitan council 100.11 shall transmit the annual budget of the radio board to the 100.12 commissioner ofadministrationpublic safety no later than 100.13 December 15 of each year. The commissionerof administration100.14 shall include all eligible costs approved by the radio board for 100.15 the regionwide public safety communication system initsthe 100.16 commissioner's request for legislative appropriations from the 100.17 911 emergencytelephonetelecommunications service fee account. 100.18All eligible costs approved by the radio board shall be included100.19in the commissioner of administration's appropriation request.100.20 Subd. 3. [MONTHLY APPROPRIATION TRANSFERS.] Each month, 100.21 before the 25th day of the month, the commissionerof100.22administrationshall transmit to the metropolitan council 1/12 100.23 of its total approved appropriation for the regionwide public 100.24 safety communication system. 100.25 Subd. 4. [IMPLEMENTATION OF PHASES THREE TO SIX.] To 100.26 implement phases three to six of the statewide public safety 100.27 radio communication system, the commissioner of public safety 100.28 shall contract with the commissioner of transportation to 100.29 construct, own, operate, maintain, and enhance the elements of 100.30 phases three to six identified in the plan developed under 100.31 section 473.907. The commissioner of transportation, under 100.32 appropriate state law, shall contract for, or procure by 100.33 purchase or lease (including joint purchase and lease 100.34 agreements), construction, installation of materials, supplies 100.35 and equipment, and other services as may be needed to build, 100.36 operate, and maintain phases three to six of the system. 101.1 Sec. 118. Minnesota Statutes 2002, section 473.902, is 101.2 amended by adding a subdivision to read: 101.3 Subd. 6. [OPERATING COSTS OF PHASES THREE TO SIX.] (a) The 101.4 ongoing costs of the commissioner in operating phases three to 101.5 six of the statewide public safety radio communication system 101.6 shall be allocated among and paid by the following users, all in 101.7 accordance with the statewide public safety radio communication 101.8 system plan developed by the planning committee under section 101.9 473.907: 101.10 (1) the state of Minnesota for its operations using the 101.11 system; 101.12 (2) all local government units using the system; and 101.13 (3) other eligible users of the system. 101.14 (b) Each local government and other eligible users of 101.15 phases three to six of the system shall pay to the commissioner 101.16 all sums charged under this section, at the times and in the 101.17 manner determined by the commissioner. The governing body of 101.18 each local government shall take all action that may be 101.19 necessary to provide the funds required for these payments and 101.20 to make the payments when due. 101.21 (c) If the governing body of any local government using 101.22 phase three, four, five, or six of the system fails to meet any 101.23 payment to the commissioner under this subdivision when due, the 101.24 commissioner may certify to the auditor of the county in which 101.25 the government unit is located the amount required for payment 101.26 of the amount due with interest at six percent per year. The 101.27 auditor shall levy and extend the amount due, with interest, as 101.28 a tax upon all taxable property in the government unit for the 101.29 next calendar year, free from any existing limitations imposed 101.30 by law or charter. This tax shall be collected in the same 101.31 manner as the general taxes of the government unit, and the 101.32 proceeds of the tax, when collected, shall be paid by the county 101.33 treasurer to the commissioner and credited to the government 101.34 unit for which the tax was levied. 101.35 Sec. 119. Minnesota Statutes 2002, section 473.907, 101.36 subdivision 1, is amended to read: 102.1 Subdivision 1. [PLANNING COMMITTEE.] (a) The commissioner 102.2 of public safety shall convene and chair a planning committee to 102.3 develop a project plan for a statewide, shared, trunked public 102.4 safety radio communication system. 102.5 (b) The planning committee consists of the following 102.6 members or their designees: 102.7 (1) the commissioner of public safety; 102.8 (2) the commissioner of transportation; 102.9 (3) the commissioner of administration; 102.10 (4) the commissioner of natural resources; 102.11 (5) the chair of the metropolitan radio board; 102.12 (6) the president of the Minnesota sheriffs' association; 102.13 (7) a representative of the league of Minnesota cities from 102.14 the metropolitan area;and102.15 (8) a representative of the league of Minnesota cities from 102.16 greater Minnesota; and 102.17 (9) a representative of the association of Minnesota 102.18 counties from greater Minnesota. 102.19 Additionally, the commissioner of finance or a designee 102.20 shall serve on the committee as a nonvoting member. 102.21 (c) The planning committee must implement the project plan 102.22 and establish the statewide, shared trunked radio and 102.23 communications system. The commissioner of public safety is 102.24 designated as the chair of the planning committee. The 102.25 commissioner of public safety and the planning committee have 102.26 overall responsibility for the successful completion of 102.27 statewide communications infrastructure system integration. 102.28 (d) The planning committee must establish one or more 102.29 advisory groups for the purpose of advising on the plan, design, 102.30 implementation and administration of the statewide, shared 102.31 trunked radio and communications system. At least one such 102.32 group must consist of the following members: 102.33 (1) the chair of the metropolitan radio board or a 102.34 designee; 102.35 (2) the chief of the Minnesota state patrol; 102.36 (3) a representative of the Minnesota state sheriffs' 103.1 association; 103.2 (4) a representative of the Minnesota chiefs of police 103.3 association; and 103.4 (5) a representative of the Minnesota fire chiefs' 103.5 association. 103.6 Sec. 120. Minnesota Statutes 2002, section 477A.014, 103.7 subdivision 4, is amended to read: 103.8 Subd. 4. [COSTS.] The director of the office of strategic 103.9 and long-range planning shall annually bill the commissioner of 103.10 revenue for one-half of the costs incurred by the state 103.11 demographer in the preparation of materials required by section 103.12 4A.02. The state auditor shall bill the commissioner of revenue 103.13 for the costs of best practices reviews and the services 103.14 provided by the government information division and the parts of 103.15 the constitutional office that are related to the government 103.16 information function, not to exceed $217,000in fiscal year 1992103.17and $217,000 ineach fiscal year1993 and thereafter. The 103.18 commissioner of administration shall bill the commissioner of 103.19 revenue for the costs of the local government records program 103.20 and the intergovernmental information systems activity, not to 103.21 exceed$201,100 in fiscal year 1992 and$205,800ineach fiscal 103.22 year1993 and thereafter. The commissioner of employee 103.23 relations shall bill the commissioner of revenue for the costs 103.24 of administering the local government pay equity function, not 103.25 to exceed$56,000 in fiscal year 1992 and$55,000ineach fiscal 103.26 year1993 and thereafter. 103.27 [EFFECTIVE DATE.] This section is effective July 1, 2004. 103.28 Sec. 121. Laws 1998, chapter 366, section 80, as amended 103.29 by Laws 2001, First Special Session chapter 10, article 2, 103.30 section 86, is amended to read: 103.31 Sec. 80. [SETTLEMENT DIVISION; TRANSFER OF JUDGES.] 103.32 The office of administrative hearings shall establish a 103.33 settlement division. The workers' compensation judges at the 103.34 department of labor and industry, together with their support 103.35 staff, offices, furnishings, equipment, and supplies, are 103.36 transferred to the settlement division of the office of 104.1 administrative hearings. Minnesota Statutes, section 15.039, 104.2 applies to the transfer of employees. The settlement division 104.3 of the office of administrative hearings shall maintain offices 104.4 in either Hennepin or Ramsey county and thecitiescity of 104.5 Duluthand Detroit Lakes. The office of a judge in the 104.6 settlement division of the office of administrative hearings and 104.7 the support staff of the judge may be located in a building that 104.8 contains offices of the department of labor and industry. The 104.9 seniority of a workers' compensation judge at the office of 104.10 administrative hearings, after the transfer, shall be based on 104.11 the total length of service as a judge at either agency. For 104.12 purposes of the commissioner's plan under Minnesota Statutes, 104.13 section 43A.18, subdivision 2, all compensation judges at the 104.14 office of administrative hearings shall be considered to be in 104.15 the same employment condition, the same organizational unit and 104.16 qualified for work in either division. 104.17 Sec. 122. [TRANSITION; RETROACTIVE PAYMENT.] 104.18 A lobbyist who was registered under Minnesota Statutes, 104.19 section 10A.04, subdivision 2, on January 15, 2003, or a 104.20 principal who was required to file a report under Minnesota 104.21 Statutes, section 10A.04, subdivision 6, by March 15, 2003, must 104.22 pay no later than August 1, 2003, a fee in the amount that would 104.23 have been required under those sections had the fees imposed by 104.24 this act been in effect at those times. 104.25 Sec. 123. [REAL ESTATE FILING SURCHARGE.] 104.26 All funds collected during the fiscal year ending June 30, 104.27 2004, and funds collected in the fiscal year ending June 30, 104.28 2003, that carry forward into the fiscal year ending June 30, 104.29 2004, pursuant to the additional 50-cent surcharges imposed by 104.30 Laws 2001, First Special Session chapter 10, article 2, section 104.31 77, and Laws 2002, chapter 365, are appropriated to the 104.32 legislative coordinating commission for the real estate task 104.33 force established by Laws 2000, chapter 391, for the purposes 104.34 set forth in Laws 2001, First Special Session chapter 10, 104.35 article 2, sections 98 to 101. $25,000 from those funds are to 104.36 be retained by the legislative coordinating commission for the 105.1 services described in Laws 2001, First Special Session chapter 105.2 10, article 2, section 99. 105.3 Sec. 124. [STUDY OF EMERGENCY MEDICAL SERVICES 105.4 PREPAREDNESS.] 105.5 The department of public safety shall seek grant funding 105.6 from federal, state, and private sources. If awarded funds, the 105.7 department shall conduct a study of Minnesota's emergency 105.8 medical service preparedness and its relationship to the 105.9 department's overall homeland security planning. The study must 105.10 analyze the coordination of responses to emergencies, financial 105.11 stability of the industries involved in providing prehospital 105.12 emergency care, effect of primary service area determinations, 105.13 availability in response to terroristic activity, and authority 105.14 of governmental subdivisions in determining the level of care. 105.15 The department shall report its findings to the chairs of the 105.16 senate health and family security committee and crime prevention 105.17 and public safety committee and the chairs of the house of 105.18 representatives health and human services policy committee and 105.19 judiciary policy and finance committee by July 1, 2004. 105.20 Sec. 125. [TRANSFER OF RESPONSIBILITIES.] 105.21 The responsibilities of the commissioner of administration 105.22 to provide 911 emergency telecommunications services under 105.23 Minnesota Statutes, chapter 403, are transferred to the 105.24 commissioner of public safety under Minnesota Statutes, section 105.25 15.039. The transfer may be completed in one or more phases as 105.26 provided in an agreement between the commissioners of 105.27 administration and public safety, but no later than the first 105.28 Monday in January 2004. 105.29 Sec. 126. [GAMBLING CONTROL; FEE TRANSITION.] 105.30 Effective July 1, 2003, all licensees regulated by the 105.31 gambling control board must begin paying the applicable fees 105.32 under Minnesota Statutes, sections 349.16 to 349.165. The 105.33 gambling control board shall provide a onetime, prorated credit 105.34 against these fees to licensees who paid for licenses before 105.35 July 1, 2003, that were to extend beyond July 1, 2003. 105.36 Sec. 127. [CARRYFORWARD.] 106.1 Notwithstanding Minnesota Statutes, section 16A.28, or 106.2 other law to the contrary, funds encumbered by the judicial or 106.3 executive agency for severance costs; unemployment compensation 106.4 costs; and health, dental, and life insurance continuation costs 106.5 resulting from state employee layoffs during the fiscal year 106.6 ending June 30, 2003, may be carried forward and may be spent 106.7 until January 1, 2004. 106.8 [EFFECTIVE DATE.] This section is effective the day 106.9 following final enactment. 106.10 Sec. 128. [VACATION LIMIT.] 106.11 A state employee in the unclassified service who takes 106.12 voluntary unpaid leave of absence during the biennium ending 106.13 June 30, 2005, must be allowed to accrue a vacation leave 106.14 balance up to at least 300 hours through June 30, 2005. 106.15 Sec. 129. [GAMING STUDY.] 106.16 If the legislature authorizes the state lottery to operate 106.17 a gaming facility in the metropolitan area, the director of the 106.18 state lottery shall contract with an independent entity to 106.19 perform an analysis of the economic effects of the facility on 106.20 existing tribal gaming facilities located in or within 100 miles 106.21 of the metropolitan area. 106.22 Sec. 130. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 106.23 (a) Appointing authorities in state government may allow 106.24 each employee to take unpaid leaves of absence for up to 1,040 106.25 hours between June 1, 2003, and June 30, 2005. The 1,040 hour 106.26 limit replaces, and is not in addition to, limits set in prior 106.27 laws. Each appointing authority approving such a leave shall 106.28 allow the employee to continue accruing vacation and sick leave, 106.29 be eligible for paid holidays and insurance benefits, accrue 106.30 seniority, and accrue service credit and credited salary in the 106.31 state retirement plans as if the employee had actually been 106.32 employed during the time of leave. An employee covered by the 106.33 unclassified plan may voluntarily make the employee 106.34 contributions to the unclassified plan during the leave of 106.35 absence. If the employee makes these contributions, the 106.36 appointing authority must make the employer contribution. If 107.1 the leave of absence is for one full pay period or longer, any 107.2 holiday pay shall be included in the first payroll warrant after 107.3 return from the leave of absence. The appointing authority 107.4 shall attempt to grant requests for the unpaid leaves of absence 107.5 consistent with the need to continue efficient operation of the 107.6 agency. However, each appointing authority shall retain 107.7 discretion to grant or refuse to grant requests for leaves of 107.8 absence and to schedule and cancel leaves, subject to the 107.9 applicable provisions of collective bargaining agreements and 107.10 compensation plans. 107.11 (b) To receive eligible service credit and credited salary 107.12 in a defined benefit plan, the member shall pay an amount equal 107.13 to the applicable employee contribution rates. If an employee 107.14 pays the employee contribution for the period of the leave under 107.15 this section, the appointing authority must pay the employer 107.16 contribution. The appointing authority may, at its discretion, 107.17 pay the employee contributions. Contributions must be made in a 107.18 time and manner prescribed by the executive director of the 107.19 Minnesota state retirement association. 107.20 [EFFECTIVE DATE.] This section is effective the day 107.21 following final enactment. 107.22 Sec. 131. [OFFICIAL PUBLICATION STUDY.] 107.23 Representatives of local public corporations, as defined in 107.24 Minnesota Statutes, chapter 331A, must meet with representatives 107.25 of qualified newspapers and report to the legislature by January 107.26 15, 2004, on alternative means of official publication for local 107.27 public corporations. 107.28 Sec. 132. [TRAINING SERVICES.] 107.29 During the biennium ending June 30, 2005, state executive 107.30 agencies must consider using services provided by the government 107.31 training service before contracting with other outside vendors 107.32 for similar services. 107.33 Sec. 133. [CRIMNET FINANCIAL AUDIT.] 107.34 The legislative auditor must complete a financial audit of 107.35 all components and expenditures of the group of projects 107.36 generally referred to as CriMNet by March 1, 2004. The audit 108.1 must include a review of all contracts related to CriMNet for 108.2 compliance with state law, including the laws and guidelines 108.3 governing the issuance of contracts. 108.4 Sec. 134. [FEE SCHEDULE.] 108.5 The campaign finance and public disclosure board, in 108.6 consultation with lobbyists, political committees, political 108.7 funds, principal campaign committees, and party units, shall 108.8 develop an equitable schedule of fees to be imposed on them to 108.9 recover the costs incurred by the board in regulating them. The 108.10 board must submit the recommended fee schedule to the 108.11 legislature by January 15, 2004. 108.12 Sec. 135. [REVISOR'S INSTRUCTION.] 108.13 The revisor of statutes shall renumber each section of 108.14 Minnesota Statutes listed in column A with the number listed in 108.15 column B. The revisor shall also make necessary cross-reference 108.16 changes consistent with the renumbering. 108.17 Column A Column B 108.18 473.891 403.21 108.19 473.893 403.22 108.20 473.894 403.23 108.21 473.895 403.24 108.22 473.896 403.25 108.23 473.897 403.26 108.24 473.898 403.27 108.25 473.899 403.28 108.26 473.900 403.29 108.27 473.901 403.30 108.28 473.902 403.31 108.29 473.903 403.32 108.30 473.904 403.33 108.31 473.905 403.34 108.32 473.906 403.35 108.33 473.907 403.36 108.34 Sec. 136. [REPEALER.] 108.35 (a) Minnesota Statutes 2002, sections 3.305, subdivision 5; 108.36 3A.11; 4A.055; 6.77; 16A.87; 16E.09; 149A.97, subdivision 8; 109.1 163.10; and 306.97, are repealed. 109.2 (b) Minnesota Rules, part 1950.1070, is repealed effective 109.3 July 1, 2004. 109.4 (c) Minnesota Statutes 2002, sections 12.221, subdivision 109.5 5; 16B.50; and 16C.07, are repealed effective the day following 109.6 final enactment. 109.7 (d) Minnesota Statutes 2002, section 3.971, subdivision 8, 109.8 is repealed effective July 1, 2004. 109.9 ARTICLE 3 109.10 ECONOMIC DEVELOPMENT APPROPRIATIONS 109.11 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 109.12 The sums shown in the columns marked "APPROPRIATIONS" are 109.13 appropriated from the general fund, or another named fund, to 109.14 the agencies and for the purposes specified in this act, to be 109.15 available for the fiscal years indicated for each purpose. The 109.16 figures "2004" and "2005," where used in this act, mean that the 109.17 appropriation or appropriations listed under them are available 109.18 for the year ending June 30, 2004, or June 30, 2005, 109.19 respectively. The term "first year" means the fiscal year 109.20 ending June 30, 2004, and the term "second year" means the 109.21 fiscal year ending June 30, 2005. 109.22 SUMMARY BY FUND 109.23 2004 2005 TOTAL 109.24 General $ 31,091,000 $ 30,364,000 $ 61,455,000 109.25 Petroleum Tank 109.26 Cleanup 1,084,000 1,084,000 2,168,000 109.27 Workers' 109.28 Compensation 615,000 835,000 1,450,000 109.29 TOTAL $ 32,790,000 $ 32,283,000 $ 65,073,000 109.30 APPROPRIATIONS 109.31 Available for the Year 109.32 Ending June 30 109.33 2004 2005 109.34 Sec. 2. COMMERCE 109.35 Subdivision 1. Total 109.36 Appropriation $ 25,856,000 $ 25,349,000 109.37 Summary by Fund 109.38 General 24,157,000 23,430,000 109.39 Petroleum 110.1 Cleanup 1,084,000 1,084,000 110.2 Workers' 110.3 Compensation 615,000 835,000 110.4 The amounts that may be spent from this 110.5 appropriation for each program are 110.6 specified in the following subdivisions. 110.7 Subd. 2. Financial 110.8 Examinations 110.9 5,997,000 5,994,000 110.10 Subd. 3. Petroleum Tank Release 110.11 Cleanup Board 110.12 1,084,000 1,084,000 110.13 This appropriation is from the 110.14 petroleum tank release cleanup fund. 110.15 Subd. 4. Administrative Services 110.16 5,518,000 5,518,000 110.17 The commissioner of commerce, after 110.18 July 1, 2003, and before June 30, 2005, 110.19 shall sell the unclaimed property 110.20 identified by the legislative auditor 110.21 in Finding 1 of the auditor's 110.22 management letter dated March 20, 110.23 2003. To the degree this property has 110.24 not been held for the three-year period 110.25 required by law prior to sale, that 110.26 three-year requirement is waived as to 110.27 this property, and the commissioner 110.28 shall sell the property. 110.29 Subd. 5. Market Assurance 110.30 6,402,000 5,897,000 110.31 Summary by Fund 110.32 General 5,787,000 5,062,000 110.33 Workers' Compensation 615,000 835,000 110.34 Subd. 6. Energy and 110.35 Telecommunications 110.36 4,349,000 4,349,000 110.37 After July 1, 2003, but before 110.38 September 30, 2003, the commissioner of 110.39 finance shall transfer $2,500,000 of 110.40 the unexpended balance in the 110.41 contractor's recovery fund established 110.42 under Minnesota Statutes, section 110.43 326.975, subdivision 1, to the general 110.44 fund. 110.45 Subd. 7. Weights and 110.46 Measurement 110.47 2,506,000 2,507,000 110.48 The fees proposed in the 2004-2005 110.49 biennial budget for the weights and 110.50 measurement division are approved. 111.1 Of the unexpended balance in the 111.2 liquefied petroleum gas account 111.3 established under Minnesota Statutes, 111.4 section 239.785, $500,000 is 111.5 transferred to the general fund. 111.6 Sec. 3. BOARD OF ACCOUNTANCY 577,000 577,000 111.7 Sec. 4. BOARD OF ARCHITECTURE, 111.8 ENGINEERING, LAND SURVEYING, 111.9 LANDSCAPE ARCHITECTURE, 111.10 GEOSCIENCE, AND INTERIOR 111.11 DESIGN 785,000 785,000 111.12 Sec. 5. BOARD OF BARBER 111.13 EXAMINERS 127,000 127,000 111.14 Sec. 6. PUBLIC UTILITIES 111.15 COMMISSION 4,163,000 4,163,000 111.16 Sec. 7. COUNCIL ON BLACK 111.17 MINNESOTANS 282,000 282,000 111.18 Sec. 8. COUNCIL ON 111.19 CHICANO-LATINO AFFAIRS 275,000 275,000 111.20 Sec. 9. COUNCIL ON 111.21 ASIAN-PACIFIC MINNESOTANS 243,000 243,000 111.22 Sec. 10. INDIAN AFFAIRS 111.23 COUNCIL 482,000 482,000 111.24 ARTICLE 4 111.25 ECONOMIC DEVELOPMENT AND COMMERCE 111.26 Section 1. [60A.035] [GOVERNMENT CONTROLLED OR OWNED 111.27 COMPANY PROHIBITED FROM TRANSACTING BUSINESS.] 111.28 (a) No insurance company the voting control or ownership of 111.29 which is held in whole or substantial part by any government or 111.30 governmental agency or entity having a tax exemption under 111.31 section 501(c)(27)(B) or 115 of the Internal Revenue Code of 111.32 1986 or which is operated for or by any such government or 111.33 agency or entity having a tax exemption under section 111.34 501(c)(27)(B) or 115 of the Internal Revenue Code of 1986 is 111.35 authorized to transact insurance in this state. Membership in a 111.36 mutual company, subscribership in a reciprocal insurer, 111.37 ownership of stock of an insurer by the alien property custodian 111.38 or similar official of the United States, or supervision of an 111.39 insurer by public insurance supervisory authority is not 111.40 considered to be an ownership, control, or operation of the 111.41 insurer for the purposes of this section. 111.42 (b) This section does not apply to an insurance company if 111.43 its sole insurance business in this state is providing workers' 112.1 compensation insurance and associated employers' liability 112.2 coverage to an employer principally located in the insurer's 112.3 state of domicile whose employee may receive benefits under 112.4 section 176.041, subdivision 4, provided the operations of the 112.5 employer are for fewer than 30 consecutive days in this state 112.6 and provided the employer has no other significant contacts with 112.7 this state. 112.8 (c) This section does not apply to a fund established under 112.9 section 16B.85, subdivision 2. 112.10 Sec. 2. Laws 2002, chapter 331, section 19, is amended to 112.11 read: 112.12 Sec. 19. [EFFECTIVE DATE.] 112.13 Sections 16 and 17 are effective July 1,20032004. 112.14 Sec. 3. [AMBULANCE SERVICE LIABILITY INSURANCE STUDY.] 112.15 The commissioner of commerce shall study the availability 112.16 and cost to ambulance services of vehicle and malpractice 112.17 insurance and the factors influencing cost increases. The 112.18 commissioner shall report the results of this study and 112.19 recommendations on means to ensure continued availability of 112.20 affordable insurance to the legislature by January 10, 2004. 112.21 Sec. 4. [REPEALER.] 112.22 Minnesota Statutes, section 155A.03, subdivisions 14 and 112.23 15; and 155A.07, subdivision 9, are repealed.