HF 1195

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:45am

A bill for an act
relating to local government; providing mandate relief; establishing the
Legislative Commission on Mandate Reform; abolishing levy limits; amending
Minnesota Statutes 2008, sections 3.842, subdivision 4a; 3.843; 16C.28,
subdivision 1a; 123B.10, subdivision 1; 134.34, subdivisions 1, 4; 275.065,
subdivisions 3, 6; 306.243, by adding a subdivision; 344.18; 365.28; 373.052,
subdivision 1; 375.194, subdivision 5; 383A.75, subdivision 3; 429.041,
subdivisions 1, 2; 446A.086, subdivision 8; 465.719, subdivision 9; 469.015;
473.13, subdivision 1; 641.12, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapters 3; 14; 275; repealing Minnesota Statutes 2008,
sections 275.065, subdivisions 5a, 6b, 6c, 8, 9, 10; 275.71; 275.72; 275.73;
275.74.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

LOCAL GOVERNMENT FINANCING

Section 1.

Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgets; form of notification.

(a) Every board must publish revenue
and expenditure budgets for the current year and the actual revenues, expenditures, fund
balances for the prior year and projected fund balances for the current year in a form
prescribed by the commissioner within one week of the acceptance of the final audit by
the board, or November 30, whichever is earlier. The forms prescribed must be designed
so that year to year comparisons of revenue, expenditures and fund balances can be made.

(b) A school board annually must notify the public of its revenue, expenditures, fund
balances, and other relevant budget information. The board must deleted text begin include the budget
information required by this section in the materials provided as a part of its truth in
taxation hearing, deleted text end post the materials in a conspicuous place on the district's official Web
site, including a link to the district's school report card on the Department of Education's
Web site, and publish the information in a qualified newspaper of general circulation
in the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 134.34, subdivision 1, is amended to read:

Subdivision 1.

Local support levels.

new text begin (a) new text end A regional library basic system support
grant shall be made to any regional public library system where there are at least three
participating counties and where each participating city and county is providing for
public library service support the lesser of (a) an amount equivalent to .82 percent of the
new text begin average of the new text end adjusted net tax capacity of the taxable property of that city or county,
as determined by the commissioner of revenue for the second new text begin , third, and fourth new text end year
preceding that calendar year deleted text begin in 1991 and later years deleted text end or (b) a per capita amount calculated
under the provisions of this subdivision. The per capita amount is established for calendar
year 1993 as $7.62. In succeeding calendar years, the per capita amount shall be increased
by a percentage equal to one-half of the percentage by which the total state adjusted net
tax capacity of property as determined by the commissioner of revenue for the second
year preceding that calendar year increases over that total adjusted net tax capacity for
the third year preceding that calendar year.

new text begin (b) new text end The minimum level of support new text begin specified under this subdivision or subdivision 4
new text end shall be certified annually to the participating cities and counties by the Department of
Education. new text begin If a city or county chooses to reduce its local support in accordance with
subdivision 4, paragraph (b) or (c), it shall notify its regional public library system. The
regional public library system shall notify the Department of Education that a revised
certification is required. The revised minimum level of support shall be certified to the
city or county by the Department of Education.
new text end

new text begin (c) new text end A city which is a part of a regional public library system shall not be required to
provide this level of support if the property of that city is already taxable by the county
for the support of that regional public library system. In no event shall the Department
of Education require any city or county to provide a higher level of support than the
level of support specified in this section in order for a system to qualify for a regional
library basic system support grant. This section shall not be construed to prohibit a city
or county from providing a higher level of support for public libraries than the level of
support specified in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for calendar years 2009 and later,
except that the change in paragraph (a) is effective for calendar years 2011 and later.
new text end

Sec. 3.

Minnesota Statutes 2008, section 134.34, subdivision 4, is amended to read:

Subd. 4.

Limitation.

new text begin (a) new text end A regional library basic system support grant shall not be
made to a regional public library system for a participating city or county which decreases
the dollar amount provided for support for operating purposes of public library service
below the amount provided by it for the second new text begin or third new text end preceding year new text begin , whichever is less new text end .
For purposes of this subdivision and subdivision 1, any funds provided under section
473.757, subdivision 2, for extending library hours of operation shall not be considered
amounts provided by a city or county for support for operating purposes of public library
service. This subdivision shall not apply to participating cities or counties where the
adjusted net tax capacity of that city or county has decreased, if the dollar amount of the
reduction in support is not greater than the dollar amount by which support would be
decreased if the reduction in support were made in direct proportion to the decrease in
adjusted net tax capacity.

new text begin (b) In addition in any calendar year in which a city or county's aid under sections
477A.011 to 477A.014, or credits under section 273.1384 is reduced after the city or
county has certified its levy payable in that year, it may reduce its local support by the
lesser of (1) ten percent, or (2) a percent equal to the percent the aid or credit reduction is
of the city or county's revenue base as defined in paragraph (e), based on aids certified for
the current calendar year. For calendar year 2009 only, the reduction under this paragraph
shall be based on 2008 aid and credit reductions under the December 2008 unallotment, as
well as any aid and credit reductions in calendar year 2009. For calendar year 2009 only,
the commissioner of revenue will calculate the reductions under this paragraph and certify
them to the commissioner of education within 15 days of this provision becoming law.
new text end

new text begin (c) In addition in any payable year in which the total amounts certified for city
or county aids under sections 477A.011 to 477A.014, are less than the total amounts
paid under those sections in the previous calendar year, a city or county may reduce its
local support by the lesser of (1) ten percent, or (2) a percent equal to the ratio of (i) the
difference between the sum of the aid it was paid under sections 477A.011 to 477A.014
and the credits it received under section 273.1398, in the previous calendar year and
the aid it is certified to be paid in the current calendar year under sections 477A.011 to
477A.014 and the credits estimated to be paid under section 273.1398, to (ii) its revenue
base for the previous year, based on aids actually paid in the previous calendar year. The
commissioner of revenue shall calculate the percent aid cut for each county and city under
this paragraph and certify the percentage cuts to the commissioner of education by August
1 of the year prior to the year in which the reduced aids and credits are to be paid. The
percentage of reduction related to reductions to credits under section 273.1384 shall be
based on the best estimation available as of July 30.
new text end

new text begin (d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
support for public libraries below the minimum level specified in subdivision 1.
new text end

new text begin (e) For purposes of this subdivision, "revenue base" means the sum of:
new text end

new text begin (1) its levy for taxes payable in the current calendar year, including the levy on
the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a),
or 473F.08, subdivision 3, paragraph (a);
new text end

new text begin (2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
new text end

new text begin (3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for support in calendar year 2009 and
thereafter for library grants paid in fiscal year 2010 and thereafter, except that the changes
in paragraph (a) are effective for support in calendar year 2010 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes. Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the
case of a town, or in the case of the state general tax, the final tax amount will be its
proposed tax. deleted text begin In the case of taxing authorities required to hold a public meeting under
subdivision 6, the notice must clearly state that each taxing authority, including regional
library districts established under section 134.201, and including the metropolitan taxing
districts as defined in paragraph (i), but excluding all other special taxing districts and
towns, will hold a public meeting to receive public testimony on the proposed budget and
proposed or final property tax levy, or, in case of a school district, on the current budget
and proposed property tax levy. deleted text end new text begin The notice must clearly state for each city, county, school
district, regional library authority established under section 134.201, and metropolitan
taxing districts as defined in paragraph (i), the time and place of the taxing authorities
regularly scheduled meetings in which the budget and levy will be discussed and the final
budget and levy determined. The taxing authorities must provide the county auditor with
the information to be included in the notice. new text end It must deleted text begin clearly state the time and place of
each taxing authority's meeting, deleted text end new text begin provide new text end a telephone number for the taxing authority that
taxpayers may call if they have questions related to the notice deleted text begin , deleted text end and an address where
comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, net of the residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special taxing districts,
and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the
case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
listed separately from the remaining amount of the city's levy. In the case of the city of
St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
remaining amount of the city's levy. In the case of Ramsey County, any amount levied
under section 134.07 may be listed separately from the remaining amount of the county's
levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision deleted text begin , subdivisions deleted text end new text begin and subdivision new text end 5a deleted text begin and 6 deleted text end ,
"metropolitan special taxing districts" means the following taxing districts in the
seven-county metropolitan area that levy a property tax for any of the specified purposes
listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy deleted text begin and shall be discussed at that
county's public hearing deleted text end .

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:

Subd. 6.

deleted text begin Public hearing; deleted text end Adoption of budget and levy.

deleted text begin (a) For purposes of this
section, the following terms shall have the meanings given:
deleted text end

deleted text begin (1) "Initial hearing" means the first and primary hearing held to discuss the taxing
authority's proposed budget and proposed property tax levy for taxes payable in the
following year, or, for school districts, the current budget and the proposed property tax
levy for taxes payable in the following year.
deleted text end

deleted text begin (2) "Continuation hearing" means a hearing held to complete the initial hearing, if
the initial hearing is not completed on its scheduled date.
deleted text end

deleted text begin (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
property tax levy, and, in the case of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.
deleted text end

deleted text begin (b) Between November 29 and December 20, the governing bodies of a city that has a
population over 500, county, metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the school district shall hold an
initial public hearing to review its current budget and proposed property tax levy for taxes
payable in the following year. The metropolitan special taxing districts shall be required to
hold only a single joint initial public hearing, the location of which will be determined by
the affected metropolitan agencies. A city, county, metropolitan special taxing district as
defined in subdivision 3, paragraph (i), regional library district established under section
134.201, or school district is not required to hold a public hearing under this subdivision
unless its proposed property tax levy for taxes payable in the following year, as certified
under subdivision 1, has increased over its final property tax levy for taxes payable in the
current year by a percentage that is greater than the percentage increase in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the current year.
deleted text end

deleted text begin (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No initial hearing may be held on a Sunday.
deleted text end

deleted text begin (d) At the initial hearing under this subdivision, the percentage increase in property
taxes proposed by the taxing authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the discussion, the governing
body shall hear comments regarding a proposed increase and explain the reasons for the
proposed increase. The public shall be allowed to speak and to ask questions. At the public
hearing, the school district must also provide and discuss information on the distribution
of its revenues by revenue source, and the distribution of its spending by program area.
deleted text end

deleted text begin (e) If the initial hearing is not completed on its scheduled date, the taxing authority
must announce, prior to adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be held at least five business
days but no more than 14 business days after the initial hearing. A continuation hearing
may not be held later than December 20 except as provided in paragraphs (f) and (g).
A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No continuation hearing may be held on a Sunday.
deleted text end

deleted text begin (f) The governing body of a county shall hold its initial hearing on the first Thursday
in December each year, and may hold additional initial hearings on other dates before
December 20 if necessary for the convenience of county residents. If the county needs a
continuation of its hearing, the continuation hearing shall be held on the third Tuesday
in December. If the third Tuesday in December falls on December 21, the county's
continuation hearing shall be held on Monday, December 20.
deleted text end

deleted text begin (g) The metropolitan special taxing districts shall hold a joint initial public hearing
on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
the second Wednesday of December even if that second Wednesday is after December 10.
deleted text end

deleted text begin (h) The county auditor shall provide for the coordination of initial and continuation
hearing dates for all school districts and cities within the county to prevent conflicts under
clauses (i) and (j).
deleted text end

deleted text begin (i) By August 10, each school board and the board of the regional library district
shall certify to the county auditors of the counties in which the school district or regional
library district is located the dates on which it elects to hold its initial hearing and any
continuation hearing. If a school board or regional library district does not certify these
dates by August 10, the auditor will assign the initial and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation hearing dates
of the county or the metropolitan special taxing districts.
deleted text end

deleted text begin (j) By August 20, the county auditor shall notify the clerks of the cities within the
county of the dates on which school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a city certifies its proposed levy
under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
any continuation hearing. Until September 15, the first and second Mondays of December
are reserved for the use of the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and continuation hearing dates. The dates
elected or assigned for the initial hearing must not conflict with the initial hearing dates
of the county, metropolitan special taxing districts, regional library districts, or school
districts within which the city is located. To the extent possible, the dates of the city's
continuation hearing should not conflict with the continuation hearing dates of the county,
metropolitan special taxing districts, regional library districts, or school districts within
which the city is located. This paragraph does not apply to cities of 500 population or less.
deleted text end

deleted text begin (k) The county initial hearing date and the city, metropolitan special taxing district,
regional library district, and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.
deleted text end

deleted text begin (l) At a subsequent hearing, each county, school district, city over 500 population,
and metropolitan special taxing district may amend its proposed property tax levy
and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and must adopt a
final budget at the subsequent hearing. The final property tax levy must be adopted prior
to adopting the final budget. A school district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
subsequent to the date of the taxing authority's initial public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation hearing. The subsequent
hearing may be held at a regularly scheduled board or council meeting or at a special
meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
of a taxing authority does not have to be coordinated by the county auditor to prevent a
conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
other taxing authority. All subsequent hearings must be held prior to five working days
after December 20 of the levy year. The date, time, and place of the subsequent hearing
must be announced at the initial public hearing or at the continuation hearing.
deleted text end

deleted text begin (m) deleted text end new text begin (a) new text end The property tax levy certified under section 275.07 by a city of any
population, county, metropolitan special taxing district, regional library district, or school
district must not exceed the proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
certified; and

(7) the amount required under section 126C.55.

deleted text begin (n) deleted text end new text begin (b) new text end This subdivision does not apply to towns and special taxing districts other
than regional library districts and metropolitan special taxing districts.

deleted text begin (o) deleted text end new text begin (c) new text end Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 6.

new text begin [275.77] TEMPORARY SUSPENSION OF NEW OR INCREASED
MAINTENANCE OF EFFORT AND MATCHING FUND REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given them:
new text end

new text begin (i) "maintenance of effort" means a requirement imposed on a political subdivision
by state law to continue providing funding of a service or program at a given or increasing
level based on its funding of the service and program in prior years;
new text end

new text begin (ii) "matching fund requirements" means a requirement imposed on a political
subdivision by state law to fund a portion of a program or service but does not mean
required nonstate contributions to state capital funded projects or other nonstate
contributions required in order to receive a grant or loan the political subdivision has
requested or applied for; and
new text end

new text begin (iii) "political subdivision" means a county, town, or statutory or home rule charter
city.
new text end

new text begin Subd. 2. new text end

new text begin Temporary suspension. new text end

new text begin (a) Notwithstanding any other provision of law
to the contrary, any new maintenance of effort or matching fund requirement enacted
after January 1, 2009, that will require spending by a political subdivision shall not be
effective until January 1, 2012.
new text end

new text begin (b) Notwithstanding any other provision of law to the contrary, any changes to
existing maintenance of effort or matching fund requirement enacted after January 1,
2009, that will require new spending by a political subdivision shall not be effective
until January 1, 2012.
new text end

new text begin (c) The suspension of changes to existing maintenance of effort and matching fund
requirements under paragraph (b) does not apply if the spending is required by federal law
and there would be a cost to the state budget without the change.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2008, section 375.194, subdivision 5, is amended to read:

Subd. 5.

Determination of county tax rate.

The eligible county's proposed and
final tax rates shall be determined by dividing the certified levy by the total taxable net tax
capacity, without regard to any abatements granted under this section. deleted text begin The county board
shall make available the estimated amount of the abatement at the public hearing under
section 275.065, subdivision 6. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 8.

Minnesota Statutes 2008, section 383A.75, subdivision 3, is amended to read:

Subd. 3.

Duties.

The committee is authorized to and shall meet from time to time
to make appropriate recommendations for the efficient and effective use of property tax
dollars raised by the jurisdictions for programs, buildings, and operations. In addition,
the committee shall:

(1) identify trends and factors likely to be driving budget outcomes over the next
five years with recommendations for how the jurisdictions should manage those trends
and factors to increase efficiency and effectiveness;

(2) agree, by October 1 of each year, on the appropriate level of overall property tax
levy for the three jurisdictions and publicly report such to the governing bodies of each
jurisdiction for ratification or modification by resolution; new text begin and
new text end

deleted text begin (3) plan for the joint truth-in-taxation hearings under section 275.065, subdivision
8; and
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end identify, by December 31 of each year, areas of the budget to be targeted in
the coming year for joint review to improve services or achieve efficiencies.

In carrying out its duties, the committee shall consult with public employees of
each jurisdiction and with other stakeholders of the city, county, and school district, as
appropriate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 9.

Minnesota Statutes 2008, section 446A.086, subdivision 8, is amended to read:

Subd. 8.

Tax levy for repayment.

(a) With the approval of the authority, a
governmental unit may levy in the year the state makes a payment under this section an
amount up to the amount necessary to provide funds for the repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental
unit. The proceeds of this levy may be used only for this purpose unless they exceed the
amount actually due. Any excess must be used to repay other state payments made under
this section or must be deposited in the debt redemption fund of the governmental unit.
The amount of aids to be reduced to repay the state are decreased by the amount levied.

(b) If the state is not repaid in full for a payment made under this section by
November 30 of the calendar year following the year in which the state makes the
payment, the authority shall require the governmental unit to certify a property tax levy in
an amount up to the amount necessary to provide funds for repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental unit.
To prevent undue hardship, the authority may allow the governmental unit to certify the
levy over a five-year period. The proceeds of the levy may be used only for this purpose
unless they are in excess of the amount actually due, in which case the excess must be used
to repay other state payments made under this section or must be deposited in the debt
redemption fund of the governmental unit. If the authority orders the governmental unit to
levy, the amount of aids reduced to repay the state are decreased by the amount levied.

deleted text begin (c) A levy under this subdivision is an increase in the levy limits of the governmental
unit for purposes of section 275.065, subdivision 6, and must be explained as a specific
increase at the meeting required under that provision.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2008, section 465.719, subdivision 9, is amended to read:

Subd. 9.

Application of other laws.

A corporation created by a political subdivision
under this section must comply with every law that applies to the political subdivision,
as if the corporation is a part of the political subdivision, unless the resolution ratifying
creation of the corporation specifically exempts the corporation from part or all of a law.
If the resolution exempts the corporation from part or all of a law, the resolution must
make a detailed and specific finding as to why the corporation cannot fulfill its purpose if
the corporation is subject to that law. A corporation may not be exempted from chapter
13D, the Minnesota Open Meeting Law, sections 138.163 to 138.25, governing records
management, or chapter 13, the Minnesota Government Data Practices Act. Any affected
or interested person may bring an action in district court to void the resolution on the
grounds that the findings are not sufficiently detailed and specific, or that the corporation
can fulfill its purpose if it is subject to the law from which the resolution exempts the
corporation. Laws that apply to a political subdivision that also apply to a corporation
created by a political subdivision under this subdivision include, but are not limited to:

(1) chapter 13D, the Minnesota Open Meeting Law;

(2) chapter 13, the Minnesota Government Data Practices Act;

(3) section 471.345, the Uniform Municipal Contracting Law;

(4) sections 43A.17, limiting the compensation of employees based on the governor's
salary; 471.991 to 471.999, providing for equitable pay; and 465.72 and 465.722,
governing severance pay;

deleted text begin (5) section 275.065, providing for truth-in-taxation hearings. If any tax revenues of
the political subdivision will be appropriated to the corporation, the corporation's annual
operating and capital budgets must be included in the truth-in-taxation hearing of the
political subdivision that created the corporation;
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end if the corporation issues debt, its debt is included in the political subdivision's
debt limit if it would be included if issued by the political subdivision, and issuance of the
debt is subject to the election and other requirements of chapter 475 and section 471.69;

deleted text begin (7) deleted text end new text begin (6) new text end section 471.895, prohibiting acceptance of gifts from interested parties, and
sections 471.87 to 471.89, relating to interests in contracts;

deleted text begin (8) deleted text end new text begin (7) new text end chapter 466, relating to municipal tort liability;

deleted text begin (9) deleted text end new text begin (8) new text end chapter 118A, requiring deposit insurance or bond or pledged collateral for
deposits;

deleted text begin (10) deleted text end new text begin (9) new text end chapter 118A, restricting investments;

deleted text begin (11) deleted text end new text begin (10) new text end section 471.346, requiring ownership of vehicles to be identified;

deleted text begin (12) deleted text end new text begin (11) new text end sections 471.38 to 471.41, requiring claims to be in writing, itemized, and
approved by the governing board before payment can be made; and

deleted text begin (13) deleted text end new text begin (12) new text end the corporation cannot make advances of pay, make or guarantee loans to
employees, or provide in-kind benefits unless authorized by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 11.

Minnesota Statutes 2008, section 473.13, subdivision 1, is amended to read:

Subdivision 1.

Budget.

(a) On or before December 20 of each year new text begin , new text end the council deleted text begin ,
after the public hearing required in section 275.065, deleted text end shall adopt a final budget covering its
anticipated receipts and disbursements for the ensuing year and shall decide upon the total
amount necessary to be raised from ad valorem tax levies to meet its budget. The budget
shall state in detail the expenditures for each program to be undertaken, including the
expenses for salaries, consultant services, overhead, travel, printing, and other items. The
budget shall state in detail the capital expenditures of the council for the budget year, based
on a five-year capital program adopted by the council and transmitted to the legislature.
After adoption of the budget and no later than five working days after December 20, the
council shall certify to the auditor of each metropolitan county the share of the tax to be
levied within that county, which must be an amount bearing the same proportion to the
total levy agreed on by the council as the net tax capacity of the county bears to the net tax
capacity of the metropolitan area. The maximum amount of any levy made for the purpose
of this chapter may not exceed the limits set by the statute authorizing the levy.

(b) Each even-numbered year the council shall prepare for its transit programs a
financial plan for the succeeding three calendar years, in half-year segments. The financial
plan must contain schedules of user charges and any changes in user charges planned or
anticipated by the council during the period of the plan. The financial plan must contain a
proposed request for state financial assistance for the succeeding biennium.

(c) In addition, the budget must show for each year:

(1) the estimated operating revenues from all sources including funds on hand at the
beginning of the year, and estimated expenditures for costs of operation, administration,
maintenance, and debt service;

(2) capital improvement funds estimated to be on hand at the beginning of the year
and estimated to be received during the year from all sources and estimated cost of capital
improvements to be paid out or expended during the year, all in such detail and form as
the council may prescribe; and

(3) the estimated source and use of pass-through funds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and
10, new text end new text begin are repealed.
new text end

new text begin (b) Minnesota Statutes 2008, sections 275.71; 275.72; 275.73; and 275.74, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2008, section 16C.28, subdivision 1a, is amended to read:

Subd. 1a.

Establishment and purpose.

(a) The state recognizes the importance of
the inclusion of a best value contracting system for construction as an alternative to the
current low-bid system of procurement. In order to accomplish that goal, state and local
governmental entities shall be able to choose the best value system in different phases.

(b) "Best value" means the procurement method defined in section 16C.02,
subdivision 4a.

(c) The following entities are eligible to participate in phase I:

(1) state agencies;

(2) counties;

(3) cities; and

(4) school districts with the highest 25 percent enrollment of students in the state.

Phase I begins on July 1, 2007.

(d) The following entities are eligible to participate in phase II:

(1) those entities included in phase I; and

(2) school districts with the highest 50 percent enrollment of students in the state.

Phase II begins two years from July 1, 2007.

(e) The following entities are eligible to participate in phase III:

(1) all entities included in phases I and II; and

(2) all other townships, school districts, and political subdivisions in the state.

Phase III begins three years from July 1, 2007.

deleted text begin (f) The commissioner or any agency for which competitive bids or proposals are
required may not use best value contracting as defined in section 16C.02, subdivision 4a,
for more than one project annually, or 20 percent of its projects, whichever is greater, in
each of the first three fiscal years in which best value construction contracting is used.
deleted text end

Sec. 2.

Minnesota Statutes 2008, section 306.243, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Abandonment; end of operation as cemetery. new text end

new text begin A county that has accepted
responsibility for an abandoned cemetery may prohibit further burials in the abandoned
cemetery, and may cease all acceptance of responsibility for new burials.
new text end

Sec. 3.

Minnesota Statutes 2008, section 344.18, is amended to read:

344.18 COMPENSATION OF VIEWERS.

Fence viewers must be paid for their services by the person employing them deleted text begin at the
rate of $15 each for each day's employment. $60 must be deposited with the town or city
treasurer before the service is performed. Upon completion of the service, any of the $60
not spent to compensate the fence viewers must be returned to the depositor deleted text end . new text begin The town
board may by resolution require the person employing the fence viewers to post a bond or
other security acceptable to the board for the total estimated costs before the viewing takes
place. The total estimated costs may include the cost of professional and other services,
hearing costs, administrative costs, recording costs, and other costs and expenses which
the town may incur in connection with the viewing.
new text end

Sec. 4.

Minnesota Statutes 2008, section 365.28, is amended to read:

365.28 PUBLIC BURIAL GROUND IS TOWN'S AFTER TEN YEARS.

A tract of land in a town becomes town property after it has been used as a public
burial ground for ten years if the tract is not owned by a cemetery association. The town
board shall control the burial ground as it controls other town cemeteries. new text begin A town that has
assumed ownership of a cemetery may prohibit further burials in it.
new text end

Sec. 5.

Minnesota Statutes 2008, section 373.052, subdivision 1, is amended to read:

Subdivision 1.

Business days.

County offices shall be open for public business on
deleted text begin all deleted text end new text begin at least four new text end business days new text begin per week new text end except (a) legal holidays, (b) holidays established
by the county board pursuant to contract with certified employee bargaining units, and
(c) emergency situations. For purposes of this section "business day" means Monday,
Tuesday, Wednesday, Thursday new text begin , new text end and Friday.

Sec. 6.

Minnesota Statutes 2008, section 429.041, subdivision 1, is amended to read:

Subdivision 1.

Plans and specifications, advertisement for bids.

When the
council determines to make any improvement, it shall let the contract for all or part of
the work, or order all or part of the work done by day labor or otherwise as authorized by
subdivision 2, no later than one year after the adoption of the resolution ordering such
improvement, unless a different time limit is specifically stated in the resolution ordering
the improvement. The council shall cause plans and specifications of the improvement
to be made, or if previously made, to be modified, if necessary, and to be approved and
filed with the clerk, and if the estimated cost exceeds deleted text begin $50,000 deleted text end new text begin the amount in section
471.345, subdivision 3 new text end , shall advertise for bids for the improvement in the newspaper and
such other papers and for such length of time as it may deem advisable. If the estimated
cost exceeds deleted text begin $100,000 deleted text end new text begin twice the amount in section 471.345, subdivision 3 new text end , publication
shall be made no less than three weeks before the last day for submission of bids once
in the newspaper and at least once in either a newspaper published in a city of the first
class or a trade paper. To be eligible as such a trade paper, a publication shall have all
the qualifications of a legal newspaper except that instead of the requirement that it shall
contain general and local news, such trade paper shall contain building and construction
news of interest to contractors in this state, among whom it shall have a general circulation.
The advertisement shall specify the work to be done, shall state the time when the bids
will be publicly opened for consideration by the council, which shall be not less than ten
days after the first publication of the advertisement when the estimated cost is less than
deleted text begin $100,000 deleted text end new text begin twice the amount in section 471.345, subdivision 3, new text end and not less than three
weeks after such publication in other cases, and shall state that no bids will be considered
unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check,
bid bond, or certified check payable to the clerk, for such percentage of the amount of the
bid as the council may specify. In providing for the advertisement for bids the council
may direct that the bids shall be opened publicly by two or more designated officers or
agents of the municipality and tabulated in advance of the meeting at which they are to
be considered by the council. Nothing herein shall prevent the council from advertising
separately for various portions of the work involved in an improvement, or from itself,
supplying by such means as may be otherwise authorized by law, all or any part of the
materials, supplies, or equipment to be used in the improvement or from combining two or
more improvements in a single set of plans and specifications or a single contract.

Sec. 7.

Minnesota Statutes 2008, section 429.041, subdivision 2, is amended to read:

Subd. 2.

Contracts; day labor.

In contracting for an improvement, the council shall
require the execution of one or more written contracts and bonds, conditioned as required
by law. The council shall award the contract to the lowest responsible bidder or it may
reject all bids. If any bidder to whom a contract is awarded fails to enter promptly into
a written contract and to furnish the required bond, the defaulting bidder shall forfeit to
the municipality the amount of the defaulter's cash deposit, cashier's check, bid bond, or
certified check, and the council may thereupon award the contract to the next lowest
responsible bidder. When it appears to the council that the cost of the entire work projected
will be less than deleted text begin $50,000 deleted text end new text begin the amount in section 471.345, subdivision 3 new text end , or whenever no
bid is submitted after proper advertisement or the only bids submitted are higher than
the engineer's estimate, the council may advertise for new bids or, without advertising
for bids, directly purchase the materials for the work and do it by the employment of day
labor or in any other manner the council considers proper. The council may have the
work supervised by the city engineer or other qualified person but shall have the work
supervised by a registered engineer if done by day labor and it appears to the council that
the entire cost of all work and materials for the improvement will be more than deleted text begin $25,000 deleted text end new text begin
the lowest amount in section 471.345, subdivision 4 new text end . In case of improper construction
or unreasonable delay in the prosecution of the work by the contractor, the council may
order and cause the suspension of the work at any time and relet the contract, or order
a reconstruction of any portion of the work improperly done, and where the cost of
completion or reconstruction necessary will be less than deleted text begin $50,000 deleted text end new text begin the amount in section
471.345, subdivision 3 new text end , the council may do it by the employment of day labor.

Sec. 8.

Minnesota Statutes 2008, section 469.015, is amended to read:

469.015 LETTING OF CONTRACTS; PERFORMANCE BONDS.

Subdivision 1.

Bids; notice.

All construction work, and work of demolition or
clearing, and every purchase of equipment, supplies, or materials, necessary in carrying
out the purposes of sections 469.001 to 469.047, that involve expenditure of deleted text begin $50,000 deleted text end new text begin the
amount in section 471.345, subdivision 3, new text end or more shall be awarded by contract. Before
receiving bids the authority shall publish, once a week for two consecutive weeks in an
official newspaper of general circulation in the community a notice that bids will be
received for that construction work, or that purchase of equipment, supplies, or materials.
The notice shall state the nature of the work and the terms and conditions upon which the
contract is to be let, naming a time and place where bids will be received, opened and read
publicly, which time shall be not less than seven days after the date of the last publication.
After the bids have been received, opened and read publicly and recorded, the authority
shall award the contract to the lowest responsible bidder, provided that the authority
reserves the right to reject any or all bids. Each contract shall be executed in writing, and
the person to whom the contract is awarded shall give sufficient bond to the authority for its
faithful performance. If no satisfactory bid is received, the authority may readvertise. The
authority may establish reasonable qualifications to determine the fitness and responsibility
of bidders and to require bidders to meet the qualifications before bids are accepted.

Subd. 1a.

Best value alternative.

As an alternative to the procurement method
described in subdivision 1, the authority may issue a request for proposals and award the
contract to the vendor or contractor offering the best value under a request for proposals as
described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

Subd. 2.

Exception; emergency.

If the authority by a vote of four-fifths of its
members shall declare that an emergency exists requiring the immediate purchase of any
equipment or material or supplies at a cost in excess of deleted text begin $50,000 deleted text end new text begin the amount in section
471.345, subdivision 3, new text end but not exceeding deleted text begin $75,000 deleted text end new text begin half again as much as the amount in
section 471.345, subdivision 3 new text end , or making of emergency repairs, it shall not be necessary
to advertise for bids, but the material, equipment, or supplies may be purchased in the
open market at the lowest price obtainable, or the emergency repairs may be contracted for
or performed without securing formal competitive bids. An emergency, for purposes of
this subdivision, shall be understood to be unforeseen circumstances or conditions which
result in the placing in jeopardy of human life or property.

Subd. 3.

Performance and payment bonds.

Performance and payment bonds shall
be required from contractors for any works of construction as provided in and subject
to all the provisions of sections 574.26 to 574.31 except for contracts entered into by
an authority for an expenditure of less than deleted text begin $50,000 deleted text end new text begin the minimum threshold amount in
section 471.345, subdivision 3 new text end .

Subd. 4.

Exceptions.

(a) An authority need not require competitive bidding in the
following circumstances:

(1) in the case of a contract for the acquisition of a low-rent housing project:

(i) for which financial assistance is provided by the federal government;

(ii) which does not require any direct loan or grant of money from the municipality
as a condition of the federal financial assistance; and

(iii) for which the contract provides for the construction of the project upon land that
is either owned by the authority for redevelopment purposes or not owned by the authority
at the time of the contract but the contract provides for the conveyance or lease to the
authority of the project or improvements upon completion of construction;

(2) with respect to a structured parking facility:

(i) constructed in conjunction with, and directly above or below, a development; and

(ii) financed with the proceeds of tax increment or parking ramp general obligation
or revenue bonds;

(3) until August 1, 2009, with respect to a facility built for the purpose of facilitating
the operation of public transit or encouraging its use:

(i) constructed in conjunction with, and directly above or below, a development; and

(ii) financed with the proceeds of parking ramp general obligation or revenue bonds
or with at least 60 percent of the construction cost being financed with funding provided
by the federal government; and

(4) in the case of any building in which at least 75 percent of the usable square
footage constitutes a housing development project if:

(i) the project is financed with the proceeds of bonds issued under section 469.034 or
from nongovernmental sources;

(ii) the project is either located on land that is owned or is being acquired by the
authority only for development purposes, or is not owned by the authority at the time the
contract is entered into but the contract provides for conveyance or lease to the authority
of the project or improvements upon completion of construction; and

(iii) the authority finds and determines that elimination of the public bidding
requirements is necessary in order for the housing development project to be economical
and feasible.

(b) An authority need not require a performance bond for the following projects:

(1) a contract described in paragraph (a), clause (1);

(2) a construction change order for a housing project in which 30 percent of the
construction has been completed;

(3) a construction contract for a single-family housing project in which the authority
acts as the general construction contractor; or

(4) a services or materials contract for a housing project.

For purposes of this paragraph, "services or materials contract" does not include
construction contracts.

Subd. 5.

Security in lieu of bond.

The authority may accept a certified check or
cashier's check in the same amount as required for a bond in lieu of a performance bond
for contracts entered into by an authority for an expenditure of less than deleted text begin $50,000 deleted text end new text begin the
minimum threshold amount in section 471.345, subdivision 3 new text end . The check must be held by
the authority for 90 days after the contract has been completed. If no suit is brought within
the 90 days, the authority must return the amount of the check to the person making it. If a
suit is brought within the 90-day period, the authority must disburse the amount of the
check pursuant to the order of the court.

Sec. 9.

Minnesota Statutes 2008, section 641.12, subdivision 1, is amended to read:

Subdivision 1.

Fee.

A county board may require that each person who is booked for
confinement at a county or regional jail, and not released upon completion of the booking
process, pay a fee deleted text begin of up to $10 deleted text end to the sheriff's department of the county in which the jail
is located new text begin to cover costs incurred by the county in the booking of that person new text end . The fee
is payable immediately from any money then possessed by the person being booked, or
any money deposited with the sheriff's department on the person's behalf. If the person
has no funds at the time of booking or during the period of any incarceration, the sheriff
shall notify the district court in the county where the charges related to the booking are
pending, and shall request the assessment of the fee. Notwithstanding section 609.10 or
609.125, upon notification from the sheriff, the district court must order the fee paid to the
sheriff's department as part of any sentence or disposition imposed. If the person is not
charged, is acquitted, or if the charges are dismissed, the sheriff shall return the fee to the
person at the last known address listed in the booking records.

ARTICLE 3

WAIVERS, EXEMPTIONS, RULES PROCESS

Section 1.

new text begin [14.128] EFFECTIVE DATE FOR RULES REQUIRING LOCAL
IMPLEMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Determination. new text end

new text begin An agency must determine if a local government
will be required to adopt or amend an ordinance or other regulation to comply with a
proposed agency rule. An agency must make this determination before the close of the
hearing record or before the agency submits the record to the administrative law judge if
there is no hearing. The administrative law judge must review and approve or disapprove
the agency's determination. "Local government" means a town, county, or home rule
charter or statutory city.
new text end

new text begin Subd. 2. new text end

new text begin Effective dates. new text end

new text begin If the agency determines that the proposed rule requires
adoption or amendment of an ordinance or other regulation, or if the administrative law
judge disapproves the agency's determination that the rule does not have this effect, the
rule may not become effective until:
new text end

new text begin (1) the next July 1 or January 1 after notice of final adoption is published in the
State Register; or
new text end

new text begin (2) a later date provided by law or specified in the proposed rule.
new text end

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin Subdivision 2 does not apply:
new text end

new text begin (1) to a rule adopted under section 14.388, 14.389, or 14.3895, or under another law
specifying that the rulemaking procedures of this chapter do not apply;
new text end

new text begin (2) if the administrative law judge approves an agency's determination that the rule
has been proposed pursuant to a specific federal statutory or regulatory mandate that
requires the rule to take effect before the date specified in subdivision 1; or
new text end

new text begin (3) if the governor waives application of subdivision 2.
new text end

ARTICLE 4

LEGISLATIVE COMMISSION ON MANDATE REFORM

Section 1.

Minnesota Statutes 2008, section 3.842, subdivision 4a, is amended to read:

Subd. 4a.

Objections to rules.

(a) For purposes of this subdivision, "committee"
means the house of representatives policy committee or senate policy committee with
primary jurisdiction over state governmental operations. The commission new text begin , the Legislative
Commission on Mandate Reform, new text end or a committee may object to a rule as provided in
this subdivision. If the commission new text begin , the Legislative Commission on Mandate Reform, new text end
or a committee objects to all or some portion of a rule because the commission new text begin , the
Legislative Commission on Mandate Reform, new text end or new text begin a new text end committee considers it to be beyond
the procedural or substantive authority delegated to the agency, including a proposed rule
submitted under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), the
commission new text begin , the Legislative Commission on Mandate Reform, new text end or new text begin a new text end committee may file
that objection in the Office of the Secretary of State. The filed objection must contain a
concise statement of the commission's new text begin , the Legislative Commission on Mandate Reform, new text end
or new text begin a new text end committee's reasons for its action. An objection to a proposed rule submitted by the
commission new text begin , the Legislative Commission on Mandate Reform, new text end or a committee under
section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), may not be filed
before the rule is adopted.

(b) The secretary of state shall affix to each objection a certification of the date and
time of its filing and as soon after the objection is filed as practicable shall transmit a
certified copy of it to the agency issuing the rule in question and to the revisor of statutes.
The secretary of state shall also maintain a permanent register open to public inspection of
all objections by the commission new text begin , the Legislative Commission on Mandate Reform, new text end or
new text begin a new text end committee.

(c) The commission new text begin , the Legislative Commission on Mandate Reform, new text end or new text begin a
new text end committee shall publish and index an objection filed under this section in the next issue
of the State Register. The revisor of statutes shall indicate the existence of the objection
adjacent to the rule in question when that rule is published in Minnesota Rules.

(d) Within 14 days after the filing of an objection by the commission new text begin , the Legislative
Commission on Mandate Reform, new text end or new text begin a new text end committee to a rule, the issuing agency shall
respond in writing to the objecting entity. After receipt of the response, the commission new text begin ,
the Legislative Commission on Mandate Reform, new text end or new text begin a new text end committee may withdraw or modify
its objection.

(e) After the filing of an objection by the commission new text begin , the Legislative Commission
on Mandate Reform, new text end or new text begin a new text end committee that is not subsequently withdrawn, the burden is
upon the agency in any proceeding for judicial review or for enforcement of the rule to
establish that the whole or portion of the rule objected to is valid.

(f) The failure of the commission new text begin , the Legislative Commission on Mandate Reform, new text end
or a committee to object to a rule is not an implied legislative authorization of its validity.

(g) In accordance with sections 14.44 and 14.45, the commission new text begin , the Legislative
Commission on Mandate Reform, new text end or a committee may petition for a declaratory judgment
to determine the validity of a rule objected to by the commission new text begin , the Legislative
Commission on Mandate Reform, new text end or new text begin a new text end committee. The action must be started within two
years after an objection is filed in the Office of the Secretary of State.

(h) The commission new text begin , the Legislative Commission on Mandate Reform, new text end or a
committee may intervene in litigation arising from agency action. For purposes of this
paragraph, agency action means the whole or part of a rule, or the failure to issue a rule.

Sec. 2.

Minnesota Statutes 2008, section 3.843, is amended to read:

3.843 PUBLIC HEARINGS BY STATE AGENCIES.

By a vote of a majority of its members, the commission new text begin or the Legislative
Commission on Mandate Reform new text end may request any agency issuing rules to hold a
public hearing in respect to recommendations made under section 3.842, including
recommendations made by the commission new text begin or the Legislative Commission on Mandate
Reform new text end to promote adequate and proper rules by that agency and recommendations
contained in the commission's biennial report. The agency shall give notice as provided in
section 14.14, subdivision 1, of a hearing under this section, to be conducted in accordance
with sections 14.05 to 14.28. The hearing must be held not more than 60 days after receipt
of the request or within any other longer time period specified by the commission new text begin or the
Legislative Commission on Mandate Reform new text end in the request.

Sec. 3.

new text begin [3.99] LEGISLATIVE COMMISSION ON MANDATE REFORM;
ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Established. new text end

new text begin The Legislative Commission on Mandate Reform is
established as provided in this section, with the powers and duties given it in sections
3.842, subdivision 4a; 3.843; and 3.99 to 3.992.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commission consists of four senators appointed by the
senate Subcommittee on Committees of the Committee on Rules and Administration,
three senators appointed by the senate minority leader, four state representatives appointed
by the speaker of the house, and three state representatives appointed by the house
of representatives minority leader. The appointing authorities must ensure balanced
geographic representation. Each appointing authority must make appointments as soon as
possible.
new text end

new text begin Subd. 3. new text end

new text begin Terms; vacancies. new text end

new text begin Members of the commission serve for a two-year term
beginning upon appointment and expiring upon appointment of a successor after the
opening of the next regular session of the legislature in the odd-numbered year. A vacancy
in the membership of the commission must be filled for the unexpired term in a manner
that will preserve the representation established by this section.
new text end

new text begin Subd. 4. new text end

new text begin Chair. new text end

new text begin The commission must meet as soon as practicable after members
are appointed in each odd-numbered year to elect its chair and other officers as it may
determine necessary. A chair serves a two-year term, expiring in the odd-numbered year
after a successor is elected. The chair must alternate biennially between the senate and the
house of representatives.
new text end

new text begin Subd. 5. new text end

new text begin Compensation. new text end

new text begin Members may be reimbursed for their reasonable
expenses as members of the legislature.
new text end

new text begin Subd. 6. new text end

new text begin Staff. new text end

new text begin The Legislative Coordinating Commission must provide
administrative support to the commission, including secretarial services, record keeping,
and grants administration.
new text end

new text begin Subd. 7. new text end

new text begin Meetings; procedures; tie votes. new text end

new text begin The first meeting of the biennium must
be convened by the member designated by the senate majority leader if a senator is to chair
the commission for the biennium, or by the speaker of the house if a state representative
is to chair the commission for the biennium. The commission meets at the call of the
chair. Commission action requires a positive vote of at least four house of representatives
members and at least four senate members.
new text end

new text begin Subd. 8. new text end

new text begin Funding. new text end

new text begin The Legislative Coordinating Commission shall annually bill the
commissioner of revenue for costs incurred by the Legislative Coordinating Commission
in providing administrative support and to make the grants authorized by the legislative
commission on unnecessary mandates, in an amount not to exceed $100,000 per year. The
commissioner of revenue shall deduct one-half of the certified costs from payments to
counties under section 477A.03, subdivision 2b, and one-half of the certified costs from
payments to cities under section 477A.03, subdivision 2a.
new text end

Sec. 4.

new text begin [3.991] LEGISLATIVE COMMISSION ON MANDATE REFORM;
REVIEW AND RECOMMENDATIONS TO LEGISLATURE.
new text end

new text begin The Legislative Commission on Mandate Reform must solicit from local
governments information on state laws and rules that local governments consider to be
problematic mandates. The commission must review the mandates identified and consider
why each mandate was enacted or adopted, whether the reason for it still exists, the costs
to local governments to comply with the mandate, and whether repeal or modification
of the mandate is appropriate. Before the beginning of each legislative session, the
commission must prepare for introduction a bill to repeal or modify those laws or rules the
commission determines are unnecessary.
new text end

Sec. 5.

new text begin [3.992] LEGISLATIVE COMMISSION ON MANDATE REFORM;
GRANTS.
new text end

new text begin Upon recommendation of the Legislative Commission on Mandate Reform,
the commissioner of revenue may make grants to the League of Minnesota Cities,
the Association of Minnesota Counties, Minnesota Association of Townships, other
organizations representing local governments, the Board of Regents of the University of
Minnesota, the Board of Trustees of Minnesota State Colleges and Universities, or other
accredited postsecondary institutions to research and make recommendations on mandate
reform. A grant may be in any amount up to $........ The commissioner must specify the
work to be done, the completion date, and the maximum grant amount, and may specify
any other conditions the commissioner deems necessary or useful.
new text end

Sec. 6.

new text begin [3.993] EXPIRATION.
new text end

new text begin Sections 3.99 to 3.992 expire June 30, 2013.
new text end

Sec. 7. new text begin FIRST MEETING AFTER EFFECTIVE DATE OF ACT.
new text end

new text begin The first meeting of the Legislative Commission on Mandate Reform must be held
as soon as practicable after all appointments are made. The speaker of the house must
designate a commission member to convene the first meeting. The first commission serves
until a new commission is appointed at the beginning of the next biennium.
new text end