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; modifying provisions related to 
  1.5             state government operations; requiring certain 
  1.6             contractor bonding; requiring licensure of certain 
  1.7             gambling equipment salespersons; modifying fee 
  1.8             provisions and providing for disposition of various 
  1.9             fees and other revenue; modifying provisions of 
  1.10            various state boards and commissions; modifying 
  1.11            provisions relating to state debt collection; 
  1.12            authorizing rulemaking; providing for a license fee 
  1.13            for fireworks retailers; requiring studies; modifying 
  1.14            lawful gambling provisions; providing for early 
  1.15            retirement incentives and other employment provisions 
  1.16            for public employees; modifying public employee 
  1.17            retirement provisions; modifying various firefighters 
  1.18            relief association provisions; amending Minnesota 
  1.19            Statutes 2002, sections 3.885, subdivision 1; 3.971, 
  1.20            subdivision 2; 6.48; 6.49; 6.54; 6.55; 6.64; 6.65; 
  1.21            6.66; 6.67; 6.68, subdivision 1; 6.70; 6.71; 6.74; 
  1.22            8.06; 10A.02, by adding subdivisions; 10A.04, 
  1.23            subdivisions 2, 4, by adding a subdivision; 10A.09, 
  1.24            subdivision 6, by adding a subdivision; 10A.31, 
  1.25            subdivision 4; 11A.17, subdivision 2; 14.091; 14.48, 
  1.26            by adding a subdivision; 15.50, subdivision 1, as 
  1.27            amended; 16A.102, subdivision 1; 16A.11, subdivision 
  1.28            3; 16A.17, by adding a subdivision; 16A.40; 16A.501; 
  1.29            16A.642, subdivision 1; 16B.054; 16B.24, subdivisions 
  1.30            1, 5; 16B.33, subdivision 3; 16B.35, subdivision 1; 
  1.31            16B.465, subdivisions 1a, 7; 16B.47; 16B.48, 
  1.32            subdivision 2; 16B.49; 16B.58, by adding a 
  1.33            subdivision; 16B.61, subdivision 1a; 16B.62, 
  1.34            subdivision 1; 16C.05, subdivision 2; 16C.08, 
  1.35            subdivisions 2, 3, 4, by adding a subdivision; 16C.09; 
  1.36            16C.10, subdivisions 1, 5, 7; 16C.15; 16C.16, 
  1.37            subdivision 7; 16D.08, subdivision 2; 16D.10; 16E.01, 
  1.38            subdivision 3; 16E.07, subdivision 9; 43A.047; 43A.24, 
  1.39            subdivision 1; 69.772, subdivision 2; 115A.929; 
  1.40            116J.8771; 122A.46, subdivision 9; 179A.03, 
  1.41            subdivision 7; 192.501, subdivision 2; 197.608; 
  1.42            240.03; 240.10; 240.15, subdivision 6; 240.155, 
  1.43            subdivision 1; 240A.03, subdivisions 10, 15; 240A.04; 
  1.44            240A.06, subdivision 1; 256B.435, subdivision 2a; 
  1.45            268.186; 270.052; 270.44; 270A.07, subdivision 1; 
  1.46            306.95; 327A.01, subdivision 2; 349.12, subdivisions 
  2.1             25, 34, by adding a subdivision; 349.151, subdivisions 
  2.2             4, 4b, by adding a subdivision; 349.155, subdivision 
  2.3             3; 349.16, subdivision 6; 349.161, subdivisions 1, 4, 
  2.4             5; 349.162, subdivision 1; 349.163, subdivisions 2, 6; 
  2.5             349.164, subdivision 4; 349.165, subdivision 3; 
  2.6             349.166, subdivisions 1, 2; 349.1711, subdivision 2; 
  2.7             349.211, by adding a subdivision; 349A.08, subdivision 
  2.8             5; 352.96, subdivision 2; 352D.04, by adding a 
  2.9             subdivision; 353.01, subdivisions 2d, 6; 353D.01, 
  2.10            subdivision 2; 353D.02, by adding a subdivision; 
  2.11            354.094, subdivision 1; 356.55, subdivision 7; 
  2.12            356.611, subdivision 1; 356B.05; 383B.49; 383B.493; 
  2.13            423C.03, subdivision 3; 423C.08; 424A.02, subdivision 
  2.14            3; 458D.17, subdivision 5; 471.696; 471.999; 474A.21; 
  2.15            477A.014, subdivision 4; Laws 1978, chapter 685, 
  2.16            section 1, as amended; Laws 1978, chapter 685, section 
  2.17            2; Laws 1978, chapter 685, section 3; Laws 1978, 
  2.18            chapter 685, section 6; Laws 1999, chapter 222, 
  2.19            article 16, section 16, as amended; Laws 2000, chapter 
  2.20            461, article 4, section 4; Laws 2000, chapter 461, 
  2.21            article 12, section 20, as amended; Laws 2000, chapter 
  2.22            461, article 19, section 6; Laws 2001 First Special 
  2.23            Session chapter 10, article 6, section 21, as amended; 
  2.24            proposing coding for new law in Minnesota Statutes, 
  2.25            chapters 3A; 6; 10A; 15A; 16C; 43A; 326; 349; 
  2.26            repealing Minnesota Statutes 2002, sections 3.305, 
  2.27            subdivision 5; 3.9222; 3.971, subdivision 8; 3A.11; 
  2.28            4A.055; 6.77; 12.221, subdivision 5; 16A.151, 
  2.29            subdivision 5; 16A.87; 16B.50; 16C.07; 16C.18, 
  2.30            subdivision 1; 16E.09; 43A.04, subdivision 10; 43A.17, 
  2.31            subdivision 9; 62J.07; 149A.97, subdivision 8; 163.10; 
  2.32            240A.08; 306.97; 349.2127, subdivision 9; 354.541; 
  2.33            354A.109; Laws 1978, chapter 685, section 5; Minnesota 
  2.34            Rules, part 1950.1070. 
  2.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.36                             ARTICLE 1 
  2.37                           APPROPRIATIONS 
  2.38  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.39     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.40  appropriated from the general fund, or another named fund, to 
  2.41  the agencies and for the purposes specified in this act, to be 
  2.42  available for the fiscal years indicated for each purpose.  The 
  2.43  figures "2004" and "2005," where used in this act, mean that the 
  2.44  appropriation or appropriations listed under them are available 
  2.45  for the year ending June 30, 2004, or June 30, 2005, 
  2.46  respectively.  The term "first year" means the fiscal year 
  2.47  ending June 30, 2004, and the term "second year" means the 
  2.48  fiscal year ending June 30, 2005. 
  2.49                          SUMMARY BY FUND
  2.50                            2004          2005           TOTAL
  2.51  General            $  261,933,000 $  258,258,000 $  520,191,000
  2.52  Health Care 
  2.53  Access                  1,782,000      1,782,000      3,564,000
  3.1   State Government 
  3.2   Special Revenue        24,653,000     28,033,000     52,686,000
  3.3   Environmental             520,000        436,000        956,000
  3.4   Remediation               484,000        484,000        968,000
  3.5   Solid Waste               672,000        672,000      1,344,000
  3.6   Special Revenue         2,947,000      2,947,000      5,894,000
  3.7   Highway User Tax 
  3.8   Distribution            2,097,000      2,097,000      4,194,000
  3.9   Workers' 
  3.10  Compensation            7,286,000      7,349,000     14,635,000
  3.11  TOTAL              $  301,702,000 $  301,386,000 $  603,088,000
  3.12                                             APPROPRIATIONS 
  3.13                                         Available for the Year 
  3.14                                             Ending June 30 
  3.15                                            2004         2005 
  3.16  Sec. 2.  LEGISLATURE 
  3.17  Subdivision 1.  Total 
  3.18  Appropriation                      $ 56,426,000   $ 56,427,000
  3.19                Summary by Fund
  3.20  General              56,298,000    56,299,000
  3.21  Health Care Access      128,000       128,000
  3.22  The amounts that may be spent from this 
  3.23  appropriation for each program are 
  3.24  specified in the following subdivisions.
  3.25  Subd. 2.  Senate                      19,107,000     19,107,000
  3.26  Subd. 3.  House of
  3.27  Representatives                       26,135,000     26,136,000
  3.28  Subd. 4.  Limit on Expenses 
  3.29  Notwithstanding any law to the 
  3.30  contrary, during the biennium ending 
  3.31  June 30, 2005: 
  3.32  (1) the house of representatives and 
  3.33  the senate may not pay per diem living 
  3.34  expenses to a member in an amount more 
  3.35  than $56; and 
  3.36  (2) the house of representatives and 
  3.37  the senate may not reimburse a member 
  3.38  for monthly housing expenses incurred 
  3.39  for more than six months in a calendar 
  3.40  year. 
  3.41  Subd. 5.  Legislative 
  3.42  Coordinating Commission               11,184,000     11,184,000
  3.43                Summary by Fund
  3.44  General              11,056,000    11,056,000
  3.45  Health Care Access      128,000       128,000
  4.1   During the biennium ending June 30, 
  4.2   2005, the legislative coordinating 
  4.3   commission, the office of the 
  4.4   legislative auditor, and the office of 
  4.5   the revisor of statutes are not subject 
  4.6   to the limitations in uses of funds 
  4.7   provided under Minnesota Statutes, 
  4.8   section 16A.281. 
  4.9   During the biennium ending June 30, 
  4.10  2005, a legislative commission or 
  4.11  subcommittee of the legislative 
  4.12  coordinating commission may by 
  4.13  resolution adopt per diem payments for 
  4.14  members attending commission meetings 
  4.15  that are less than the payments 
  4.16  permitted by rules of the house of 
  4.17  representatives and the senate. 
  4.18  Sec. 3.  GOVERNOR AND 
  4.19  LIEUTENANT GOVERNOR                    3,586,000      3,586,000
  4.20  This appropriation is to fund the 
  4.21  office of the governor and lieutenant 
  4.22  governor. 
  4.23  $19,000 the first year and $19,000 the 
  4.24  second year are for necessary expenses 
  4.25  in the normal performance of the 
  4.26  governor's and lieutenant governor's 
  4.27  duties for which no other reimbursement 
  4.28  is provided. 
  4.29  Sec. 4.  ATTORNEY GENERAL             21,816,000     21,795,000
  4.30                Summary by Fund
  4.31  General              20,059,000    20,059,000
  4.32  State Government 
  4.33  Special Revenue       1,612,000     1,591,000
  4.34  Environmental           145,000       145,000
  4.35  Remediation             484,000       484,000
  4.36  Sec. 5.  STATE AUDITOR                 8,376,000      8,376,000
  4.37  Sec. 6.  SECRETARY OF STATE            5,912,000      6,032,000
  4.38  Sec. 7.  CAMPAIGN FINANCE AND
  4.39  PUBLIC DISCLOSURE BOARD                  712,000        712,000
  4.40  Sec. 8.  INVESTMENT BOARD              2,167,000      2,167,000
  4.41  Sec. 9.  ADMINISTRATIVE 
  4.42  HEARINGS                               7,186,000      7,249,000
  4.43  This appropriation is from the workers' 
  4.44  compensation fund. 
  4.45  Fee rates charged during fiscal years 
  4.46  2004 and 2005 by the Administrative Law 
  4.47  Division of the Office of 
  4.48  Administrative Hearings must be reduced 
  4.49  by ten percent from fiscal year 2003 
  4.50  levels. 
  4.51  Sec. 10.  OFFICE OF STRATEGIC
  4.52  AND LONG-RANGE PLANNING                3,264,000      3,264,000
  5.1   $100,000 the first year and $100,000 
  5.2   the second year are for a grant to the 
  5.3   Northern Counties Land Use Coordinating 
  5.4   Board for purposes of the pilot project 
  5.5   established in Laws 2002, chapter 373, 
  5.6   section 33.  The pilot project is 
  5.7   extended until June 30, 2005. 
  5.8   Sec. 11.  ADMINISTRATION
  5.9   Subdivision 1.  Total 
  5.10  Appropriation                         44,553,000     47,454,000
  5.11                Summary by Fund
  5.12  General              21,912,000    21,412,000
  5.13  State Government
  5.14  Special Revenue      22,641,000    26,042,000
  5.15  The amounts that may be spent from this 
  5.16  appropriation for each program are 
  5.17  specified in the following subdivisions.
  5.18  Subd. 2.  Operations Management 
  5.19       2,669,000      2,669,000 
  5.20  Subd. 3.  Office of Technology 
  5.21       2,479,000      2,479,000 
  5.22  Subd. 4.  Intertechnologies Group 
  5.23      22,641,000     26,042,000
  5.24  This appropriation is from the state 
  5.25  government special revenue fund for 
  5.26  recurring costs of 911 emergency 
  5.27  telephone service. 
  5.28  Subd. 5.  Facilities Management 
  5.29      11,803,000     11,303,000
  5.30  $7,888,000 the first year and 
  5.31  $7,888,000 the second year are for 
  5.32  office space costs of the legislature 
  5.33  and veterans organizations, for 
  5.34  ceremonial space, and for statutorily 
  5.35  free space. 
  5.36  $500,000 the first year is for onetime 
  5.37  funding of agency relocation expenses.  
  5.38  $262,000 the first year and $262,000 
  5.39  the second year are for administration 
  5.40  of the Capitol Area Architectural and 
  5.41  Planning Board. 
  5.42  $1,225,000 in the first year and 
  5.43  $1,225,000 in the second year of the 
  5.44  balance in the facility repair and 
  5.45  replacement account in the state 
  5.46  government special revenue fund is 
  5.47  canceled to the general fund.  This 
  5.48  amount is in addition to amounts 
  5.49  transferred under Minnesota Statutes, 
  5.50  section 16B.24, subdivision 5. 
  5.51  Subd. 6.  Management Services 
  6.1        2,830,000      2,830,000
  6.2   $196,000 the first year and $196,000 
  6.3   the second year are for the office of 
  6.4   the state archaeologist.  
  6.5   $74,000 the first year and $74,000 the 
  6.6   second year are for the developmental 
  6.7   disabilities council. 
  6.8   Subd. 7.  Public Broadcasting 
  6.9        2,131,000      2,131,000 
  6.10  $1,378,000 the first year and 
  6.11  $1,378,000 the second year are for 
  6.12  public television. 
  6.13  $423,000 the first year and $423,000 
  6.14  the second year are for grants and 
  6.15  contracts with the senate and house of 
  6.16  representatives for public information 
  6.17  television, Internet, Intranet, and 
  6.18  other transmission of legislative 
  6.19  activities.  At least one-half must go 
  6.20  for programming to be broadcast and 
  6.21  transmitted to rural Minnesota. 
  6.22  $17,000 the first year and $17,000 the 
  6.23  second year are for grants to the Twin 
  6.24  Cities regional cable channel. 
  6.25  $313,000 the first year and $313,000 
  6.26  the second year are for grants to 
  6.27  public educational radio stations 
  6.28  affiliated with the Association of 
  6.29  Minnesota Public Educational Radio 
  6.30  Stations. 
  6.31  Sec. 12.  FINANCE                      
  6.32  Subdivision 1.  Total
  6.33  Appropriation                         15,216,000     15,216,000
  6.34  The amounts that may be spent from this 
  6.35  appropriation for each program are 
  6.36  specified in the following subdivisions.
  6.37  Subd. 2.  State Financial Management 
  6.38       8,711,000      8,711,000 
  6.39  Subd. 3.  Information and
  6.40  Management Services           
  6.41       6,505,000      6,505,000 
  6.42  Sec. 13.  EMPLOYEE RELATIONS            
  6.43  Subdivision 1.  Total
  6.44  Appropriation                          6,118,000      6,118,000 
  6.45  The amounts that may be spent from this 
  6.46  appropriation for each program are 
  6.47  specified in the following subdivisions.
  6.48  Subd. 2.  Employee Insurance
  6.49          63,000         63,000 
  7.1   Subd. 3.  Human Resources Management 
  7.2        6,055,000      6,055,000 
  7.3   Sec. 14.  REVENUE 
  7.4   Subdivision 1.  Total 
  7.5   Appropriation                         90,942,000     92,658,000
  7.6                 Summary by Fund
  7.7   General              86,816,000    88,616,000
  7.8   Health Care Access    1,654,000     1,654,000
  7.9   Highway User 
  7.10  Tax Distribution      2,097,000     2,097,000
  7.11  Environmental           375,000       291,000
  7.12  The amounts that may be spent from this 
  7.13  appropriation for each program are 
  7.14  specified in the following subdivisions.
  7.15  Subd. 2.  Tax System Management 
  7.16       77,038,000     78,254,000 
  7.17                Summary by Fund
  7.18  General              72,912,000    74,212,000
  7.19  Health Care Access    1,654,000     1,654,000
  7.20  Highway User 
  7.21  Tax Distribution      2,097,000     2,097,000
  7.22  Environmental           375,000       291,000
  7.23  $938,000 the first year and $2,238,000 
  7.24  the second year are for additional 
  7.25  activities to identify and collect tax 
  7.26  liabilities from individuals and 
  7.27  businesses that currently do not pay 
  7.28  all taxes owed.  This initiative is 
  7.29  expected to result in new general fund 
  7.30  revenues of $32,400,000 for the 
  7.31  biennium ending June 30, 2005. 
  7.32  The department must report to the 
  7.33  chairs of the house ways and means and 
  7.34  senate finance committees by March 1, 
  7.35  2004, and January 15, 2005, on the 
  7.36  following performance indicators: 
  7.37  (1) the number of corporations 
  7.38  noncompliant with the corporate tax 
  7.39  system each year and the percentage and 
  7.40  dollar amounts of valid tax liabilities 
  7.41  collected; 
  7.42  (2) the number of businesses 
  7.43  noncompliant with the sales and use tax 
  7.44  system and the percentage and dollar 
  7.45  amounts of the valid tax liabilities 
  7.46  collected; and 
  7.47  (3) the number of individual 
  7.48  noncompliant cases resolved and the 
  7.49  percentage and dollar amounts of valid 
  7.50  tax liabilities collected. 
  8.1   The reports must also identify base 
  8.2   level expenditures and staff positions 
  8.3   related to compliance and audit 
  8.4   activities, including baseline 
  8.5   information as of January 1, 2002.  The 
  8.6   information must be provided at the 
  8.7   budget activity level. 
  8.8   Subd. 3.  Accounts Receivable 
  8.9   Management 
  8.10      13,904,000     14,404,000 
  8.11  $862,000 the first year and $1,362,000 
  8.12  the second year are for additional 
  8.13  activities to identify and collect tax 
  8.14  liabilities from individuals and 
  8.15  businesses that currently do not pay 
  8.16  all taxes owed. 
  8.17  Sec. 15.  MILITARY AFFAIRS
  8.18  Subdivision 1.  Total 
  8.19  Appropriation                         12,279,000     12,279,000
  8.20  The amounts that may be spent from this 
  8.21  appropriation for each program are 
  8.22  specified in the following subdivisions.
  8.23  Subd. 2.  Maintenance of Training Facilities 
  8.24       5,590,000      5,590,000 
  8.25  Subd. 3.  General Support 
  8.26       1,757,000      1,757,000
  8.27  Subd. 4.  Enlistment Incentives 
  8.28       4,857,000      4,857,000 
  8.29  If appropriations for either year of 
  8.30  the biennium are insufficient, the 
  8.31  appropriation from the other year is 
  8.32  available.  The appropriations for 
  8.33  enlistment incentives are available 
  8.34  until expended. 
  8.35  Subd. 5.  Emergency Services 
  8.36          75,000         75,000
  8.37  These appropriations are for expenses 
  8.38  of military forces ordered to active 
  8.39  duty under Minnesota Statutes, chapter 
  8.40  192.  If the appropriation for either 
  8.41  year is insufficient, the appropriation 
  8.42  for the other year is available for it. 
  8.43  Sec. 16.  VETERANS AFFAIRS             3,988,000      3,988,000
  8.44  Sec. 17.  VETERANS OF FOREIGN 
  8.45  WARS                                      55,000         55,000 
  8.46  For carrying out the provisions of Laws 
  8.47  1945, chapter 455. 
  8.48  Sec. 18.  MILITARY ORDER OF
  8.49  THE PURPLE HEART                          20,000         20,000 
  8.50  Sec. 19.  DISABLED AMERICAN
  9.1   VETERANS                                  13,000         13,000 
  9.2   For carrying out the provisions of Laws 
  9.3   1941, chapter 425. 
  9.4   Sec. 20.  GAMBLING CONTROL             2,728,000      2,526,000
  9.5                 Summary by Fund
  9.6   General                 202,000        -0-   
  9.7   Special Revenue       2,526,000     2,526,000
  9.8   The general fund appropriation in 
  9.9   fiscal year 2004 is intended to assist 
  9.10  with the transition to fee-based 
  9.11  funding.  The commissioner of finance 
  9.12  must approve the use of this onetime 
  9.13  appropriation and may require that it 
  9.14  be reimbursed to the general fund if 
  9.15  sufficient resources are available in 
  9.16  the special revenue fund. 
  9.17  The special revenue fund appropriation 
  9.18  is made from the lawful gambling 
  9.19  regulation account. 
  9.20  Sec. 21.  RACING COMMISSION              525,000        421,000 
  9.21                Summary by Fund
  9.22  General                 104,000        -0-   
  9.23  Special Revenue         421,000       421,000
  9.24  The general fund appropriation in 
  9.25  fiscal year 2004 is intended to assist 
  9.26  with the transition to fee-based 
  9.27  funding.  The commissioner of finance 
  9.28  must approve the use of this onetime 
  9.29  appropriation and may require that it 
  9.30  be reimbursed to the general fund if 
  9.31  sufficient resources are available in 
  9.32  the special revenue fund. 
  9.33  The special revenue fund appropriation 
  9.34  is made from the racing and card 
  9.35  playing regulation account. 
  9.36  Sec. 22.  TORT CLAIMS                    161,000        161,000 
  9.37  To be spent by the commissioner of 
  9.38  finance. 
  9.39  If the appropriation for either year is 
  9.40  insufficient, the appropriation for the 
  9.41  other year is available for it. 
  9.42  Sec. 23.  MINNESOTA STATE 
  9.43  RETIREMENT SYSTEM                      2,518,000      2,727,000
  9.44  The amounts estimated to be needed for 
  9.45  each program are as follows: 
  9.46  (a) Legislators 
  9.47       2,150,000      2,300,000 
  9.48  (b) Constitutional Officers 
  9.49         368,000        427,000
 10.1   Sec.  24.  MINNEAPOLIS EMPLOYEES
 10.2   RETIREMENT FUND                        6,632,000      6,632,000 
 10.3   Sec. 25.  AMATEUR SPORTS 
 10.4   COMMISSION                               525,000        525,000
 10.5   The appropriations in this section may 
 10.6   only be spent up to the amount of 
 10.7   offsetting fee revenue generated by the 
 10.8   commission under Minnesota Statutes, 
 10.9   section 240A.03. 
 10.10  Sec. 26.  GENERAL CONTINGENT
 10.11  ACCOUNTS                               5,500,000        500,000
 10.12                Summary by Fund
 10.13  General               5,000,000        -0-   
 10.14  State Government 
 10.15  Special Revenue         400,000       400,000
 10.16  Workers' 
 10.17  Compensation            100,000       100,000
 10.18  The appropriations in this section may 
 10.19  only be spent with the approval of the 
 10.20  governor in accordance with the rules 
 10.21  of the legislative advisory commission 
 10.22  pursuant to Minnesota Statutes, section 
 10.23  3.30. 
 10.24  If an appropriation in this section for 
 10.25  either year is insufficient, the 
 10.26  appropriation for the other year is 
 10.27  available for it. 
 10.28     Sec. 27.  [GOVERNMENT EFFICIENCIES.] 
 10.29     Subdivision 1.  [TELECOMMUNICATION DEVICES.] The 
 10.30  commissioner of administration, in consultation with heads of 
 10.31  other executive agencies, must issue policies to reduce 
 10.32  telecommunication device usage and expenditures by executive 
 10.33  agencies other than the Minnesota state colleges and 
 10.34  universities. 
 10.35     Subd. 2.  [VEHICLES.] (a) The commissioner of 
 10.36  administration, in consultation with heads of other executive 
 10.37  agencies, must issue policies to reduce ownership and use of 
 10.38  passenger vehicles and light duty trucks by executive agencies 
 10.39  other than the Minnesota state colleges and universities. 
 10.40     (b) The commissioner may sell vehicles owned by the state 
 10.41  motor pool and may order the sale of passenger vehicles and 
 10.42  light duty trucks owned by other executive agencies other than 
 10.43  the Minnesota state colleges and universities.  The net proceeds 
 10.44  of these sales must be deposited in the general fund, unless 
 11.1   provided otherwise by the commissioner of finance. 
 11.2      Subd. 3.  [TRANSFERS.] The commissioner of finance may 
 11.3   authorize the transfer to and deposit in the general fund of 
 11.4   money saved under subdivisions 1 and 2 from funds other than the 
 11.5   general fund. 
 11.6      Subd. 4.  [SAVINGS.] (a) It is anticipated that the 
 11.7   efficiencies and deposits under subdivisions 1 to 3 will result 
 11.8   in general fund savings or revenues of at least $10,000,000 
 11.9   during the biennium ending June 30, 2005.  General fund savings 
 11.10  and revenues that are achieved through actions taken under 
 11.11  section 28 may be applied to the savings requirements estimated 
 11.12  to be achieved under this section.  The commissioner of finance, 
 11.13  in consultation with the commissioner of administration, must 
 11.14  reduce general fund appropriations to executive agencies other 
 11.15  than the Minnesota state colleges and universities by the amount 
 11.16  of savings estimated to be achieved under this section. 
 11.17     (b) If the commissioner of finance, in consultation with 
 11.18  the commissioner of administration, estimates that the 
 11.19  efficiencies and deposits achieved under this section will 
 11.20  result in general fund savings and revenues totaling less than 
 11.21  $10,000,000 during the biennium ending June 30, 2005, the 
 11.22  commissioner of finance must report to the legislature by 
 11.23  January 15, 2004, with proposed allocations of the amount of the 
 11.24  difference as reductions to general fund operating budgets of 
 11.25  executive agencies other than the Minnesota state colleges and 
 11.26  universities for fiscal year 2005.  The commissioner must 
 11.27  implement the proposed fiscal year 2005 executive agency 
 11.28  operating budget reductions unless the 2004 legislature enacts a 
 11.29  law providing otherwise. 
 11.30     Sec. 28.  [PURCHASING SAVINGS.] 
 11.31     Subdivision 1.  [POLICIES AND PROCEDURES.] The commissioner 
 11.32  of administration, in consultation with heads of other executive 
 11.33  agencies, must implement policies and procedures to reduce 
 11.34  expenditures on purchases of goods and services by executive 
 11.35  agencies.  These policies and procedures may include increased 
 11.36  use of reverse auctions and other electronic purchasing 
 12.1   initiatives and use of authority under Minnesota Statutes, 
 12.2   section 16E.09, to pay initial costs associated with certain 
 12.3   initiatives, and may include reductions in specified categories 
 12.4   of purchases. 
 12.5      Subd. 2.  [TRANSFERS.] The commissioner of finance may 
 12.6   authorize the transfer to and deposit in the general fund of 
 12.7   money saved under subdivision 1 from funds other than the 
 12.8   general fund. 
 12.9      Subd. 3.  [SAVINGS.] (a) It is anticipated that actions 
 12.10  taken under subdivisions 1 and 2 will result in general fund 
 12.11  savings or revenues of at least $4,000,000 during the biennium 
 12.12  ending June 30, 2005.  General fund savings and revenues that 
 12.13  are achieved through actions taken under section 27 may be 
 12.14  applied to the savings requirements estimated to be achieved 
 12.15  under this section.  The commissioner of finance, in 
 12.16  consultation with the commissioner of administration, must 
 12.17  reduce general fund appropriations to executive agencies by the 
 12.18  amount of savings estimated to be achieved under this section. 
 12.19     (b) If the commissioner of finance, in consultation with 
 12.20  the commissioner of administration, estimates that the actions 
 12.21  taken under this section will result in general fund savings and 
 12.22  revenues totaling less than $4,000,000 during the biennium 
 12.23  ending June 30, 2005, the commissioner of finance must report to 
 12.24  the legislature by January 15, 2004, with proposed allocations 
 12.25  of the amount of the difference as reductions to general fund 
 12.26  operating budgets of executive agencies for fiscal year 2005.  
 12.27  The commissioner must implement the proposed fiscal year 2005 
 12.28  executive agency operating budget reductions unless the 2004 
 12.29  legislature enacts a law providing otherwise. 
 12.30     Sec. 29.  [PROCUREMENT EFFICIENCY REVOLVING LOAN FUND.] 
 12.31     $4,000,000 is appropriated as a loan from the general fund 
 12.32  in fiscal year 2004 to the commissioner of administration for 
 12.33  purposes of making investments related to achieving efficiencies 
 12.34  in purchases of state goods and services.  This appropriation is 
 12.35  available only:  (1) to the extent the necessary funds are not 
 12.36  available from the technology enterprise fund created in 
 13.1   Minnesota Statutes, section 16E.09; and (2) if the commissioners 
 13.2   of finance and administration determine that the loan can be 
 13.3   repaid to the general fund before June 30, 2005, through savings 
 13.4   in state purchases of goods and services, and the reductions in 
 13.5   general fund expenditures associated with these savings as 
 13.6   required by section 28. 
 13.7      Sec. 30.  [INSURANCE.] 
 13.8      Subdivision 1.  [CONTRIBUTION LIMIT.] Total employer 
 13.9   contributions for medical and dental coverage for eligible state 
 13.10  employees and dependents and for constitutional officers, 
 13.11  legislators, and dependents in each year of the biennium ending 
 13.12  June 30, 2005, shall not exceed the total amount contributed by 
 13.13  the state for that purpose in the fiscal year ending June 30, 
 13.14  2003.  This section does not apply to the Minnesota state 
 13.15  colleges and universities.  
 13.16     Subd. 2.  [SAVINGS.] It is anticipated that entities in the 
 13.17  executive, legislative, and judicial branches of state 
 13.18  government, not including the Minnesota state colleges and 
 13.19  universities, will realize general fund operational savings of 
 13.20  at least $46,240,000 during the biennium ending June 30, 2005, 
 13.21  as a result of the insurance contribution freeze in subdivision 
 13.22  1.  The commissioner of finance must reduce general fund 
 13.23  appropriations to executive, legislative, and judicial entities, 
 13.24  not including the Minnesota state colleges and universities, for 
 13.25  the biennium ending June 30, 2005, by a proportional amount of 
 13.26  the $46,240,000 general fund savings. 
 13.27     Sec. 31.  [SALE OF STATE LAND.] 
 13.28     Subdivision 1.  [STATE LAND SALES.] The commissioner of 
 13.29  administration shall coordinate with the head of each department 
 13.30  or agency having control of state-owned land to identify and 
 13.31  sell at least $5,505,000 of state-owned land.  Sales should be 
 13.32  completed according to law and as provided in this section as 
 13.33  soon as practicable but no later than June 30, 2005.  
 13.34  Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, or 
 13.35  any other law to the contrary, the commissioner may offer land 
 13.36  for public sale by only providing notice of lands or an offer of 
 14.1   sale of lands to state departments or agencies, the University 
 14.2   of Minnesota, cities, counties, towns, school districts, or 
 14.3   other public entities. 
 14.4      Subd. 2.  [ANTICIPATED SAVINGS.] Notwithstanding Minnesota 
 14.5   Statutes, section 94.16, subdivision 3, or other law to the 
 14.6   contrary, the amount of the proceeds from the sale of land under 
 14.7   this section that exceeds the actual expenses of selling the 
 14.8   land must be deposited in the general fund, except as otherwise 
 14.9   provided by the commissioner of finance.  Notwithstanding 
 14.10  Minnesota Statutes, section 94.11, the commissioner of finance 
 14.11  may establish the timing of payments for land purchased under 
 14.12  this section.  If the total of all money deposited into the 
 14.13  general fund from the proceeds of the sale of land under this 
 14.14  section is anticipated to be less than $5,505,000, the governor 
 14.15  must allocate the amount of the difference as reductions to 
 14.16  general fund operating expenditures for other executive agencies 
 14.17  for the biennium ending June 30, 2005. 
 14.18     Subd. 3.  [STATE LAND SALES FOR CONSIDERATION.] Based on 
 14.19  the inventory of state-owned land under Laws 2002, chapter 393, 
 14.20  section 36, the commissioner of administration with the 
 14.21  cooperation of the responsible agency head may consider the 
 14.22  following for sale under this section: 
 14.23     (1) the BCA property at 1246 University Avenue in St. Paul 
 14.24  with a public use classification of "to be determined"; and 
 14.25     (2) other land identified as surplus in the inventory of 
 14.26  state-owned land. 
 14.27     Subd. 4.  [SALE OF STATE LANDS REVOLVING LOAN 
 14.28  FUND.] $180,075 is appropriated from the general fund in fiscal 
 14.29  year 2004 to the commissioner of administration for purposes of 
 14.30  paying the actual expenses of selling state-owned lands to 
 14.31  achieve the anticipated savings required in this section.  From 
 14.32  the gross proceeds of land sales under this section, the 
 14.33  commissioner of administration must cancel the amount of the 
 14.34  appropriation in this subdivision to the general fund by June 
 14.35  30, 2005. 
 14.36     Sec. 32.  [SECRETARY OF STATE APPROPRIATION.] 
 15.1      $369,000 is appropriated in fiscal year 2003 from the 
 15.2   general fund to the secretary of state for payment of the 
 15.3   attorney fees awarded by court order in Zachman et al. vs. 
 15.4   Kiffmeyer et al.  This is a onetime appropriation and is not 
 15.5   added to the secretary of state's base budget. 
 15.6      Sec. 33.  [REAL ESTATE FILING SURCHARGE.] 
 15.7      All funds collected during the fiscal year ending June 30, 
 15.8   2004, and funds collected in the fiscal year ending June 30, 
 15.9   2003, that carry forward into the fiscal year ending June 30, 
 15.10  2004, pursuant to the additional 50 cent surcharges imposed by 
 15.11  Laws 2001, First Special Session chapter 10, article 2, section 
 15.12  77, and Laws 2002, chapter 365, are appropriated to the 
 15.13  legislative coordinating commission for the real estate task 
 15.14  force established by Laws 2000, chapter 391, for the purposes 
 15.15  set forth in Laws 2001, First Special Session chapter 10, 
 15.16  article 2, sections 98 to 101.  $25,000 from those funds are to 
 15.17  be retained by the legislative coordinating commission for the 
 15.18  services described in Laws 2001, First Special Session chapter 
 15.19  10, article 2, section 99. 
 15.20     Sec. 34.  [LOTTERY.] 
 15.21     The director of the state lottery shall implement an 
 15.22  international game and a new lotto game, or take other steps 
 15.23  necessary to raise general fund revenue during the biennium 
 15.24  ending June 30, 2005, of at least $5,880,000 more than the 
 15.25  general fund revenue forecast in the governor's budget proposal 
 15.26  for the biennium ending June 30, 2005. 
 15.27     Sec. 35.  [EFFECTIVE DATE.] 
 15.28     Sections 26 and 32 are effective the day following final 
 15.29  enactment. 
 15.30                             ARTICLE 2 
 15.31                    STATE GOVERNMENT OPERATIONS 
 15.32     Section 1.  Minnesota Statutes 2002, section 3.885, 
 15.33  subdivision 1, is amended to read: 
 15.34     Subdivision 1.  [MEMBERSHIP.] The legislative commission on 
 15.35  planning and fiscal policy consists of 18 nine members of the 
 15.36  senate appointed by the subcommittee on committees of the 
 16.1   committee on rules and administration and nine members of the 
 16.2   house of representatives appointed by the legislative 
 16.3   coordinating commission speaker.  Vacancies on the commission 
 16.4   are filled in the same manner as original appointments.  The 
 16.5   commission shall elect a chair and a vice-chair from among its 
 16.6   members.  The chair alternates between a member of the senate 
 16.7   and a member of the house in January of each odd-numbered year. 
 16.8      Sec. 2.  Minnesota Statutes 2002, section 3.971, 
 16.9   subdivision 2, is amended to read: 
 16.10     Subd. 2.  [STAFF; COMPENSATION.] The legislative auditor 
 16.11  shall establish a financial audits division and a program 
 16.12  evaluation division to fulfill the duties prescribed in this 
 16.13  section.  Each division must may be supervised by a deputy 
 16.14  auditor, appointed by the legislative auditor, with the approval 
 16.15  of the commission, for a term coterminous with the legislative 
 16.16  auditor's term.  The deputy auditors may be removed before the 
 16.17  expiration of their terms only for cause.  The legislative 
 16.18  auditor and deputy auditors may each appoint a confidential 
 16.19  secretary to serve at pleasure.  The salaries and benefits of 
 16.20  the legislative auditor, deputy auditors and confidential 
 16.21  secretaries shall be determined by the compensation plan 
 16.22  approved by the legislative coordinating commission.  The deputy 
 16.23  auditors may perform and exercise the powers, duties and 
 16.24  responsibilities imposed by law on the legislative auditor when 
 16.25  authorized by the legislative auditor.  The deputy auditors and 
 16.26  the confidential secretaries serve in the unclassified civil 
 16.27  service, but all other employees of the legislative auditor are 
 16.28  in the classified civil service.  While in office, a person 
 16.29  appointed deputy for the financial audit division must hold an 
 16.30  active license as a certified public accountant. 
 16.31     Sec. 3.  [3A.115] 
 16.32     The amount necessary to fund the retirement allowance 
 16.33  granted under this chapter to a former legislator upon 
 16.34  retirement is appropriated from the general fund to the director 
 16.35  to pay pension obligations due to the retiree.  Retirement 
 16.36  allowances payable to retired legislators and their survivors 
 17.1   under this chapter must be adjusted in the same manner, at the 
 17.2   same times, and in the same amounts as are benefits payable from 
 17.3   the Minnesota postretirement investment fund to retirees of a 
 17.4   participating public pension fund. 
 17.5      Sec. 4.  Minnesota Statutes 2002, section 6.48, is amended 
 17.6   to read: 
 17.7      6.48 [EXAMINATION OF COUNTIES; COST, FEES.] 
 17.8      All the powers and duties conferred and imposed upon the 
 17.9   state auditor shall be exercised and performed by the state 
 17.10  auditor in respect to the offices, institutions, public 
 17.11  property, and improvements of several counties of the state.  At 
 17.12  least once in each year, if funds and personnel permit, the 
 17.13  state auditor shall may visit, without previous notice, each 
 17.14  county and make a thorough examination of all accounts and 
 17.15  records relating to the receipt and disbursement of the public 
 17.16  funds and the custody of the public funds and other 
 17.17  property.  If the audit is performed by a private certified 
 17.18  public accountant, the state auditor may require additional 
 17.19  information from the private certified public accountant as the 
 17.20  state auditor deems in the public interest.  The state auditor 
 17.21  may accept the audit or make additional examinations as the 
 17.22  state auditor deems to be in the public interest.  The state 
 17.23  auditor shall prescribe and install systems of accounts and 
 17.24  financial reports that shall be uniform, so far as practicable, 
 17.25  for the same class of offices.  A copy of the report of such 
 17.26  examination shall be filed and be subject to public inspection 
 17.27  in the office of the state auditor and another copy in the 
 17.28  office of the auditor of the county thus examined.  The state 
 17.29  auditor may accept the records and audit, or any part thereof, 
 17.30  of the department of human services in lieu of examination of 
 17.31  the county social welfare funds, if such audit has been made 
 17.32  within any period covered by the state auditor's audit of the 
 17.33  other records of the county.  If any such examination shall 
 17.34  disclose malfeasance, misfeasance, or nonfeasance in any office 
 17.35  of such county, such report shall be filed with the county 
 17.36  attorney of the county, and the county attorney shall institute 
 18.1   such civil and criminal proceedings as the law and the 
 18.2   protection of the public interests shall require. 
 18.3      The county receiving such any examination shall pay to the 
 18.4   state general fund, notwithstanding the provisions of section 
 18.5   16A.125, the total cost and expenses of such examinations, 
 18.6   including the salaries paid to the examiners while actually 
 18.7   engaged in making such examination.  The state auditor on 
 18.8   deeming it advisable may bill counties, having a population of 
 18.9   200,000 or over, monthly for services rendered and the officials 
 18.10  responsible for approving and paying claims shall cause said 
 18.11  bill to be promptly paid.  The general fund shall be credited 
 18.12  with all collections made for any such examinations.  
 18.13     Sec. 5.  Minnesota Statutes 2002, section 6.49, is amended 
 18.14  to read: 
 18.15     6.49 [CITIES OF FIRST CLASS.] 
 18.16     All powers and duties conferred and imposed upon the state 
 18.17  auditor with respect to state and county officers, institutions, 
 18.18  property, and improvements are hereby extended to cities of the 
 18.19  first class.  Copies of the written report of the state auditor 
 18.20  on the financial condition and accounts of such city shall be 
 18.21  filed in the state auditor's office, with the mayor, city 
 18.22  council, and city comptroller thereof, and with the city 
 18.23  commissioners, if such city have such officers.  If such report 
 18.24  disclose malfeasance, misfeasance, or nonfeasance in office, 
 18.25  copies thereof shall be filed with the city attorney thereof and 
 18.26  with the county attorney of the county in which such city is 
 18.27  located, and these officials of the law shall institute such 
 18.28  proceedings, civil or criminal, as the law and the public 
 18.29  interest require.  
 18.30     The state auditor may shall bill said cities monthly for 
 18.31  services rendered, including any examination, and the officials 
 18.32  responsible for approving and paying claims shall cause said 
 18.33  bill to be promptly paid.  
 18.34     Sec. 6.  Minnesota Statutes 2002, section 6.54, is amended 
 18.35  to read: 
 18.36     6.54 [EXAMINATION OF COUNTY AND MUNICIPAL RECORDS PURSUANT 
 19.1   TO PETITION.] 
 19.2      The registered voters in a county or home rule charter or 
 19.3   statutory city or the electors at an annual or special town 
 19.4   meeting of a town may petition the state auditor to examine the 
 19.5   books, records, accounts, and affairs of the county, home rule 
 19.6   charter or statutory city, town, or of any organizational unit, 
 19.7   activity, project, enterprise, or fund thereof; and the scope of 
 19.8   the examination may be limited by the petition, but the 
 19.9   examination shall cover, at least, all cash received and 
 19.10  disbursed and the transactions relating thereto, provided that 
 19.11  the state auditor shall not examine more than the six latest 
 19.12  years preceding the circulation of the petition, unless it 
 19.13  appears to the state auditor during the examination that the 
 19.14  audit period should be extended to permit a full recovery under 
 19.15  bonds furnished by public officers or employees, and may if it 
 19.16  appears to the auditor in the public interest confine the period 
 19.17  or the scope of audit or both period and scope of audit, to less 
 19.18  than that requested by the petition.  In the case of a county or 
 19.19  home rule charter or statutory city, the petition shall be 
 19.20  signed by a number of registered voters at least equal to 20 
 19.21  percent of those voting in the last presidential election.  The 
 19.22  eligible voters of any school district may petition the state 
 19.23  auditor, who shall be subject to the same restrictions regarding 
 19.24  the scope and period of audit, provided that the petition shall 
 19.25  be signed by at least ten eligible voters for each 50 resident 
 19.26  pupils in average daily membership during the preceding school 
 19.27  year as shown on the records in the office of the commissioner 
 19.28  of children, families, and learning.  In the case of school 
 19.29  districts, the petition shall be signed by at least ten eligible 
 19.30  voters.  At the time it is circulated, every petition shall 
 19.31  contain a statement that the cost of the audit will be borne by 
 19.32  the county, city, or school district as provided by law.  Thirty 
 19.33  days before the petition is delivered to the state auditor it 
 19.34  shall be presented to the appropriate city or school district 
 19.35  clerk and the county auditor.  The county auditor shall 
 19.36  determine and certify whether the petition is signed by the 
 20.1   required number of registered voters or eligible voters as the 
 20.2   case may be.  The certificate shall be conclusive evidence 
 20.3   thereof in any action or proceeding for the recovery of the 
 20.4   costs, charges, and expenses of any examination made pursuant to 
 20.5   the petition. 
 20.6      Sec. 7.  Minnesota Statutes 2002, section 6.55, is amended 
 20.7   to read: 
 20.8      6.55 [EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF 
 20.9   GOVERNING BODY.] 
 20.10     The governing body of any city, town, county or school 
 20.11  district, by appropriate resolution may ask the state auditor to 
 20.12  examine the books, records, accounts and affairs of their 
 20.13  government, or of any organizational unit, activity, project, 
 20.14  enterprise, or fund thereof; and the state auditor shall examine 
 20.15  the same upon receiving, pursuant to said resolution, a written 
 20.16  request signed by a majority of the members of the governing 
 20.17  body; and the governing body of any public utility commission, 
 20.18  or of any public corporation having a body politic and 
 20.19  corporate, or of any instrumentality joint or several of any 
 20.20  city, town, county, or school district, may request an audit of 
 20.21  its books, records, accounts and affairs in the same manner; 
 20.22  provided that the scope of the examination may be limited by the 
 20.23  request, but such examination shall cover, at least, all cash 
 20.24  received and disbursed and the transactions relating thereto.  
 20.25  Such written request shall be presented to the clerk, or 
 20.26  recording officer of such city, town, county, school district, 
 20.27  public utility commission, public corporation, or 
 20.28  instrumentality, before being presented to the state auditor, 
 20.29  who shall determine whether the same is signed by a majority of 
 20.30  the members of such governing body and, if found to be so 
 20.31  signed, shall certify such fact, and the fact that such 
 20.32  resolution was passed, which certificate shall be conclusive 
 20.33  evidence thereof in any action or proceedings for the recovery 
 20.34  of the costs, charges and expenses of any examination made 
 20.35  pursuant to such request.  Nothing contained in any of the laws 
 20.36  of the state relating to the state auditor, shall be so 
 21.1   construed as to prevent any county, city, town, or school 
 21.2   district from employing a certified public accountant to examine 
 21.3   its books, records, accounts, and affairs.  For the purposes of 
 21.4   this section, the governing body of a town is the town board.  
 21.5      Sec. 8.  Minnesota Statutes 2002, section 6.64, is amended 
 21.6   to read: 
 21.7      6.64 [COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC 
 21.8   ACCOUNTANT DEFINED.] 
 21.9      There shall be mutual cooperation between the state auditor 
 21.10  and public accountants in the performance of auditing, 
 21.11  accounting, and other related services for counties, cities, 
 21.12  towns, school districts, and other public corporations.  For the 
 21.13  purposes of sections 6.64 to 6.71 the term public accountant 
 21.14  shall have the meaning ascribed to it in section 412.222.  
 21.15     Sec. 9.  Minnesota Statutes 2002, section 6.65, is amended 
 21.16  to read: 
 21.17     6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.] 
 21.18     The state auditor shall prescribe minimum procedures and 
 21.19  the audit scope for auditing the books, records, accounts, and 
 21.20  affairs of counties and local governments in Minnesota.  The 
 21.21  minimum scope for audits of all local governments must include 
 21.22  financial and legal compliance audits.  Audits of all school 
 21.23  districts must include a determination of compliance with 
 21.24  uniform financial accounting and reporting standards.  The state 
 21.25  auditor shall promulgate an audit guide for legal compliance 
 21.26  audits, in consultation with representatives of the state 
 21.27  auditor, the attorney general, towns, cities, counties, school 
 21.28  districts, and private sector public accountants. 
 21.29     Sec. 10.  Minnesota Statutes 2002, section 6.66, is amended 
 21.30  to read: 
 21.31     6.66 [CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.] 
 21.32     Any public accountant may engage in the practice of 
 21.33  auditing the books, records, accounts, and affairs of counties, 
 21.34  cities, towns, school districts, and other public corporations 
 21.35  which are not otherwise required by law to be audited 
 21.36  exclusively by the state auditor.  
 22.1      Sec. 11.  Minnesota Statutes 2002, section 6.67, is amended 
 22.2   to read: 
 22.3      6.67 [PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO 
 22.4   MISCONDUCT.] 
 22.5      Whenever a public accountant in the course of auditing the 
 22.6   books and affairs of a county, city, town, school district, or 
 22.7   other public corporations, shall discover evidence pointing to 
 22.8   nonfeasance, misfeasance, or malfeasance, on the part of an 
 22.9   officer or employee in the conduct of duties and affairs, the 
 22.10  public accountant shall promptly make a report of such discovery 
 22.11  to the state auditor and the county attorney of the county in 
 22.12  which the governmental unit is situated and the public 
 22.13  accountant shall also furnish a copy of the report of audit upon 
 22.14  completion to said officers.  The county attorney shall act on 
 22.15  such report in the same manner as required by law for reports 
 22.16  made to the county attorney by the state auditor.  
 22.17     Sec. 12.  Minnesota Statutes 2002, section 6.68, 
 22.18  subdivision 1, is amended to read: 
 22.19     Subdivision 1.  [REQUEST TO GOVERNING BODY.] If in an audit 
 22.20  of a county, city, town, school district, or other public 
 22.21  corporation, a public accountant has need of the assistance of 
 22.22  the state auditor, the accountant may obtain such assistance by 
 22.23  requesting the governing body of the governmental unit being 
 22.24  examined to request the state auditor to perform such auditing 
 22.25  or investigative services, or both, as the matter and the public 
 22.26  interest require.  
 22.27     Sec. 13.  Minnesota Statutes 2002, section 6.70, is amended 
 22.28  to read: 
 22.29     6.70 [ACCESS TO REPORTS.] 
 22.30     The state auditor and the public accountants shall have 
 22.31  reasonable access to each other's audit reports, working papers, 
 22.32  and audit programs concerning audits made by each of counties, 
 22.33  cities, towns, school districts, and other public corporations.  
 22.34     Sec. 14.  Minnesota Statutes 2002, section 6.71, is amended 
 22.35  to read: 
 22.36     6.71 [SCOPE OF AUDITOR'S INVESTIGATION.] 
 23.1      Whenever the governing body of a county, city, town, or 
 23.2   school district shall have requested a public accountant to make 
 23.3   an audit of its books and affairs, and such audit is in progress 
 23.4   or has been completed, and freeholders registered voters or 
 23.5   electors petition or the governing body requests or both the 
 23.6   state auditor to make an examination covering the same, or part 
 23.7   of the same, period, the state auditor may, in the public 
 23.8   interest, limit the scope of the examination to less than that 
 23.9   specified in section 6.54, but the scope shall cover, at least, 
 23.10  an investigation of those complaints which are within the state 
 23.11  auditor's powers and duties to investigate. 
 23.12     Sec. 15.  Minnesota Statutes 2002, section 6.74, is amended 
 23.13  to read: 
 23.14     6.74 [INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.] 
 23.15     The state auditor, or a designated agent, shall collect 
 23.16  annually from all city, county, and other local units of 
 23.17  government, information as to the assessment of property, 
 23.18  collection of taxes, receipts from licenses and other sources, 
 23.19  the expenditure of public funds for all purposes, borrowing, 
 23.20  debts, principal and interest payments on debts, and such other 
 23.21  information as may be needful.  The data shall be supplied 
 23.22  upon blanks forms prescribed by the state auditor, and all 
 23.23  public officials so called upon shall fill out properly and 
 23.24  return promptly all blanks forms so transmitted.  The state 
 23.25  auditor or assistants, may examine local records in order to 
 23.26  complete or verify the information.  
 23.27     Sec. 16.  [6.78] [BEST PRACTICES REVIEWS.] 
 23.28     The state auditor shall conduct best practices reviews that 
 23.29  examine the procedures and practices used to deliver local 
 23.30  government services, determine the methods of local government 
 23.31  service delivery, identify variations in cost and effectiveness, 
 23.32  and identify practices to save money or provide more effective 
 23.33  service delivery.  The state auditor shall recommend to local 
 23.34  governments service delivery methods and practices to improve 
 23.35  the cost-effectiveness of services.  The state auditor shall 
 23.36  determine the local government services to be reviewed in 
 24.1   consultation with representatives of the Association of 
 24.2   Minnesota Counties, the League of Minnesota Cities, the 
 24.3   Association of Metropolitan Municipalities, the Minnesota 
 24.4   Association of Townships, the Minnesota Municipal Utilities 
 24.5   Association, and the Minnesota Association of School 
 24.6   Administrators. 
 24.7      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
 24.8      Sec. 17.  [6.79] [EQUITABLE COMPENSATION COMPLIANCE.] 
 24.9      The state auditor may adopt rules under the Administrative 
 24.10  Procedure Act to ensure compliance with sections 471.991 to 
 24.11  471.999. 
 24.12     Sec. 18.  Minnesota Statutes 2002, section 8.06, is amended 
 24.13  to read: 
 24.14     8.06 [ATTORNEY FOR STATE OFFICERS, BOARDS, OR COMMISSIONS; 
 24.15  EMPLOY COUNSEL.] 
 24.16     The attorney general shall act as the attorney for all 
 24.17  state officers and all boards or commissions created by law in 
 24.18  all matters pertaining to their official duties.  When requested 
 24.19  by the attorney general, it shall be the duty of any county 
 24.20  attorney of the state to appear within the county and act as 
 24.21  attorney for any such board, commission, or officer in any court 
 24.22  of such county.  The attorney general may, upon request in 
 24.23  writing, employ, and fix the compensation of, a special attorney 
 24.24  for any such board, commission, or officer when, in the attorney 
 24.25  general's judgment, the public welfare will be promoted 
 24.26  thereby.  Such special attorney's fees or salary shall be paid 
 24.27  from the appropriation made for such board, commission, or 
 24.28  officer.  Except as herein provided, no board, commission, or 
 24.29  officer shall hereafter employ any attorney at the expense of 
 24.30  the state.  
 24.31     Whenever the attorney general, the governor, and or the 
 24.32  chief justice of the supreme court shall certify, in writing, 
 24.33  filed in the office of the secretary of state, that it is 
 24.34  necessary, in the proper conduct of the legal business of the 
 24.35  state, either civil or criminal, that the state employ 
 24.36  additional counsel, the attorney general, the governor, or the 
 25.1   chief justice of the supreme court shall thereupon be authorized 
 25.2   to employ authorize the employment of such counsel and, with the 
 25.3   governor and the chief justice, fix the additional counsel's 
 25.4   compensation.  Except as herein stated, no additional counsel 
 25.5   shall be employed and the legal business of the state shall be 
 25.6   performed exclusively by the attorney general and the attorney 
 25.7   general's assistants. 
 25.8      Sec. 19.  Minnesota Statutes 2002, section 10A.02, is 
 25.9   amended by adding a subdivision to read: 
 25.10     Subd. 15.  [DISPOSITION OF FEES.] The board must deposit 
 25.11  all fees collected under this chapter into the general fund in 
 25.12  the state treasury. 
 25.13     Sec. 20.  Minnesota Statutes 2002, section 10A.02, is 
 25.14  amended by adding a subdivision to read: 
 25.15     Subd. 16.  [PROPOSED FEE CHANGES.] As part of its 
 25.16  submission of its biennial budget request, the board must 
 25.17  propose changes to the fees required in this chapter that will 
 25.18  be sufficient to recover the direct appropriation to the board.  
 25.19  The board must include in its recovery calculation seven percent 
 25.20  of the amounts designated by individuals for the state elections 
 25.21  campaign fund under section 10A.31, subdivision 4. 
 25.22     Sec. 21.  Minnesota Statutes 2002, section 10A.04, 
 25.23  subdivision 2, is amended to read: 
 25.24     Subd. 2.  [TIME OF REPORTS.] Each report must cover the 
 25.25  time from the last day of the period covered by the last report 
 25.26  to 15 days before the current filing date.  The reports must be 
 25.27  filed with the board by the following dates: 
 25.28     (1) January 15; and 
 25.29     (2) April 15; and 
 25.30     (3) July 15 June 15.  
 25.31     Sec. 22.  Minnesota Statutes 2002, section 10A.04, 
 25.32  subdivision 4, is amended to read: 
 25.33     Subd. 4.  [CONTENT.] (a) A report under this section must 
 25.34  include information the board requires from the registration 
 25.35  form and the information required by this subdivision for the 
 25.36  reporting period. 
 26.1      (b) A lobbyist must report the lobbyist's total 
 26.2   disbursements on lobbying, separately listing lobbying to 
 26.3   influence legislative action, lobbying to influence 
 26.4   administrative action, and lobbying to influence the official 
 26.5   actions of a metropolitan governmental unit, and a breakdown of 
 26.6   disbursements for each of those kinds of lobbying into 
 26.7   categories specified by the board, including but not limited to 
 26.8   the cost of publication and distribution of each publication 
 26.9   used in lobbying; other printing; media, including the cost of 
 26.10  production; postage; travel; fees, including allowances; 
 26.11  entertainment; telephone and telegraph; and other expenses. 
 26.12     (c) A lobbyist must report the amount and nature of each 
 26.13  gift, item, or benefit, excluding contributions to a candidate, 
 26.14  equal in value to $5 or more, given or paid to any official, as 
 26.15  defined in section 10A.071, subdivision 1, by the lobbyist or an 
 26.16  employer or employee of the lobbyist.  The list must include the 
 26.17  name and address of each official to whom the gift, item, or 
 26.18  benefit was given or paid and the date it was given or paid.  
 26.19     (d) A lobbyist must report each original source of money in 
 26.20  excess of $500 in any year used for the purpose of lobbying to 
 26.21  influence legislative action, administrative action, or the 
 26.22  official action of a metropolitan governmental unit.  The list 
 26.23  must include the name, address, and employer, or, if 
 26.24  self-employed, the occupation and principal place of business, 
 26.25  of each payer of money in excess of $500. 
 26.26     (e) On the report due April 15 June 15, the lobbyist must 
 26.27  provide a general description of the subjects lobbied in the 
 26.28  previous 12 months. 
 26.29     Sec. 23.  Minnesota Statutes 2002, section 10A.04, is 
 26.30  amended by adding a subdivision to read: 
 26.31     Subd. 9.  [ELECTRONIC REPORTS.] Effective January 1, 2005, 
 26.32  a lobbyist may file a report required under this section 
 26.33  electronically with the board. 
 26.34     Sec. 24.  [10A.045] [LOBBYIST AND PRINCIPAL REPORT FEES.] 
 26.35     Subdivision 1.  [PURPOSE.] The purpose of this section is 
 26.36  to pay for the cost of administering sections 10A.03 to 10A.06 
 27.1   with fees collected from lobbyists to be used only for that 
 27.2   purpose. 
 27.3      Subd. 2.  [FEE; USE; PROHIBITION.] Each lobbyist and 
 27.4   principal must pay a biennial fee of $400 by January 15 of every 
 27.5   odd-numbered year.  Authorized unpaid volunteers of an 
 27.6   organization recognized as a 501(c)(3) charity by the Internal 
 27.7   Revenue Service are not required to pay this fee.  The fees 
 27.8   collected under this section must not be more than the amount 
 27.9   necessary to administer the lobbyist registration and regulation 
 27.10  provisions of this chapter.  A person who has not paid the fee 
 27.11  required by this section is prohibited from acting as a lobbyist.
 27.12     Sec. 25.  Minnesota Statutes 2002, section 10A.09, 
 27.13  subdivision 6, is amended to read: 
 27.14     Subd. 6.  [SUPPLEMENTARY STATEMENT.] Each individual who is 
 27.15  required to file a statement of economic interest must file a 
 27.16  supplementary statement on April 15 of each year that the 
 27.17  individual remains in office if information on the most recently 
 27.18  filed statement has changed.  The supplementary statement, if 
 27.19  required, must include the amount of each honorarium in excess 
 27.20  of $50 received since the previous statement and the name and 
 27.21  address of the source of the honorarium.  The board must 
 27.22  maintain a statement of economic interest submitted by an 
 27.23  officeholder in the same file with the statement submitted as a 
 27.24  candidate. 
 27.25     Sec. 26.  Minnesota Statutes 2002, section 10A.09, is 
 27.26  amended by adding a subdivision to read: 
 27.27     Subd. 9.  [FILING FEE.] A public official required to file 
 27.28  a statement of economic interest or an annual supplementary 
 27.29  statement with the board under this section must accompany the 
 27.30  statement with a $65 filing fee.  A public official listed in 
 27.31  section 10A.01, subdivision 35, clause (2), is not required to 
 27.32  pay this fee. 
 27.33     Sec. 27.  [10A.145] [REGISTRATION FEES.] 
 27.34     Subdivision 1.  [REQUIREMENT.] Each principal campaign 
 27.35  committee must pay to the board a registration fee when it 
 27.36  originally registers with the board and each time a nonjudicial 
 28.1   candidate for whom a committee is registered files for office.  
 28.2   The office with which the candidate files must collect the fee 
 28.3   when the candidate files and must deposit it into the general 
 28.4   fund in the state treasury. 
 28.5      Subd. 2.  [AMOUNT OF FEE.] The registration fees are as 
 28.6   follows: 
 28.7      (1) principal campaign committee for candidate for 
 28.8   nonjudicial statewide office, $1,000; 
 28.9      (2) principal campaign committee for candidate for state 
 28.10  senate, $600; 
 28.11     (3) principal campaign committee for candidate for state 
 28.12  house of representatives, $300; 
 28.13     (4) principal campaign committee for judicial candidate, 
 28.14  $250.  
 28.15     Subd. 3.  [TRANSITION.] Lobbyists, principals, and 
 28.16  principal campaign committees that are registered on the 
 28.17  effective date of this section must pay the fee for initial 
 28.18  registration required by this section or section 10A.045 within 
 28.19  60 days after the effective date of this section.  This 
 28.20  subdivision expires August 1, 2004. 
 28.21     Sec. 28.  Minnesota Statutes 2002, section 10A.31, 
 28.22  subdivision 4, is amended to read: 
 28.23     Subd. 4.  [APPROPRIATION.] (a) The amounts designated by 
 28.24  individuals for the state elections campaign fund, less three 
 28.25  ten percent, are appropriated from the general fund, must be 
 28.26  transferred and credited to the appropriate account in the state 
 28.27  elections campaign fund, and are annually appropriated for 
 28.28  distribution as set forth in subdivisions 5, 5a, 6, and 7.  The 
 28.29  remaining three ten percent must be kept in the general fund for 
 28.30  administrative costs.  
 28.31     (b) In addition to the amounts in paragraph (a), $1,500,000 
 28.32  for each general election is appropriated from the general fund 
 28.33  for transfer to the general account of the state elections 
 28.34  campaign fund. 
 28.35     Sec. 29.  Minnesota Statutes 2002, section 14.091, is 
 28.36  amended to read: 
 29.1      14.091 [PETITION; UNIT OF LOCAL GOVERNMENT.] 
 29.2      (a) The elected governing body of a statutory or home rule 
 29.3   city, a county, or a sanitary district may petition for 
 29.4   amendment or repeal of a rule or a specified portion of a rule.  
 29.5   The petition must be adopted by resolution of the elected 
 29.6   governing body and must be submitted in writing to the agency 
 29.7   and to the office of administrative hearings, must specify what 
 29.8   amendment or repeal is requested, and must demonstrate that one 
 29.9   of the following has become available since the adoption of the 
 29.10  rule in question: 
 29.11     (1) significant new evidence relating to the need for or 
 29.12  reasonableness of the rule; or 
 29.13     (2) less costly or intrusive methods of achieving the 
 29.14  purpose of the rule. 
 29.15     (b) Within 30 days of receiving a petition, an agency shall 
 29.16  reply to the petitioner in writing stating either that the 
 29.17  agency, within 90 days of the date of the reply, will give 
 29.18  notice under section 14.389 of intent to adopt the amendment or 
 29.19  repeal requested by the petitioner or that the agency does not 
 29.20  intend to amend or repeal the rule and has requested the office 
 29.21  of administrative hearings to review the petition.  If the 
 29.22  agency intends to amend or repeal the rule in the manner 
 29.23  requested by the petitioner, the agency must use the process 
 29.24  under section 14.389 to amend or repeal the rule.  Section 
 29.25  14.389, subdivision 5, applies.  
 29.26     (c) Upon receipt of an agency request under paragraph (b), 
 29.27  the chief administrative law judge shall assign an 
 29.28  administrative law judge, who was not involved when the rule or 
 29.29  portion of a rule that is the subject of the petition was 
 29.30  adopted or amended, to review the petition to determine whether 
 29.31  the petitioner has complied with the requirements of paragraph 
 29.32  (a).  The petitioner, the agency, or any interested person, at 
 29.33  the option of any of them, may submit written material for the 
 29.34  assigned administrative law judge's consideration within ten 
 29.35  days of the chief administrative law judge's receipt of the 
 29.36  agency request.  The administrative law judge shall dismiss the 
 30.1   petition if the judge determines that: 
 30.2      (1) the petitioner has not complied with the requirements 
 30.3   of paragraph (a); 
 30.4      (2) the rule is required to comply with a court order; or 
 30.5      (3) the rule is required by federal law or is required to 
 30.6   maintain authority to administer a federal program. 
 30.7      (d) If the administrative law judge assigned by the chief 
 30.8   administrative law judge determines that the petitioner has 
 30.9   complied with the requirements of paragraph (a), the 
 30.10  administrative law judge shall conduct a hearing and issue a 
 30.11  decision on the petition within 120 days of its receipt by the 
 30.12  office of administrative hearings.  The agency shall give notice 
 30.13  of the hearing in the same manner required for notice of a 
 30.14  proposed rule hearing under section 14.14, subdivision 1a.  At 
 30.15  the public hearing, the agency shall make an affirmative 
 30.16  presentation of facts establishing the need for and 
 30.17  reasonableness of the rule or portion of the rule in question.  
 30.18  If the administrative law judge determines that the agency has 
 30.19  not established the continued need for and reasonableness of the 
 30.20  rule or portion of the rule, the rule or portion of the rule 
 30.21  does not have the force of law, effective 90 days after the 
 30.22  administrative law judge's decision, unless the agency has 
 30.23  before then published notice in the State Register of intent to 
 30.24  amend or repeal the rule in accordance with paragraph (e). 
 30.25     (e) The agency may amend or repeal the rule in the manner 
 30.26  requested by the petitioner, or in another manner that the 
 30.27  administrative law judge has determined is needed and reasonable.
 30.28  Amendments under this paragraph may be adopted under the 
 30.29  expedited process in section 14.389.  Section 14.389, 
 30.30  subdivision 5, applies to this adoption.  If the agency uses the 
 30.31  expedited process and no public hearing is required, the agency 
 30.32  must complete the amendment or repeal of the rule within 90 days 
 30.33  of the administrative law judge's decision under paragraph (d).  
 30.34  If a public hearing is required, the agency must complete the 
 30.35  amendment or repeal of the rule within 180 days of the 
 30.36  administrative law judge's decision under paragraph (d).  A rule 
 31.1   or portion of a rule that is not amended or repealed in the time 
 31.2   prescribed by this paragraph does not have the force of law upon 
 31.3   expiration of the deadline.  A rule that is amended within the 
 31.4   time prescribed in this paragraph has the force of law, as 
 31.5   amended. 
 31.6      (f) The chief administrative law judge shall report the 
 31.7   decision under paragraph (d) within 30 days to the chairs of the 
 31.8   house and senate committees having jurisdiction over 
 31.9   governmental operations and the chairs of the house and senate 
 31.10  committees having jurisdiction over the agency whose rule or 
 31.11  portion of a rule was the subject of the petition. 
 31.12     (g) The chief administrative law judge shall assess a 
 31.13  petitioner half the cost of processing a petition and conducting 
 31.14  a public hearing under paragraph (d). 
 31.15     (h) This section expires July 31, 2006. 
 31.16     Sec. 30.  Minnesota Statutes 2002, section 14.48, is 
 31.17  amended by adding a subdivision to read: 
 31.18     Subd. 4.  [MANDATORY RETIREMENT.] An administrative law 
 31.19  judge and compensation judge must retire upon attaining age 70.  
 31.20  The chief administrative law judge may appoint a retired 
 31.21  administrative law judge or compensation judge to hear any 
 31.22  proceeding that is properly assignable to an administrative law 
 31.23  judge or compensation judge.  When a retired administrative law 
 31.24  judge or compensation judge undertakes this service, the retired 
 31.25  judge shall receive pay and expenses in the amount payable to 
 31.26  temporary administrative law judges or compensation judges 
 31.27  serving under section 14.49. 
 31.28     <h>[EFFECTIVE DATE.]</h> This section is effective June 30, 2003.  
 31.29  An administrative law judge or compensation judge who has 
 31.30  attained the age of 70 on or before that date must retire by 
 31.31  June 30, 2003. 
 31.32     Sec. 31.  Minnesota Statutes 2002, section 15.50, 
 31.33  subdivision 1, as amended by Laws 2003, chapter 17, section 1, 
 31.34  subdivision 2, is amended to read: 
 31.35     Subd. 2.  [MEMBERSHIP, APPOINTERS; OATH QUALIFIES.] (a) The 
 31.36  capitol area architectural and planning board, called the board 
 32.1   or the CAAPB in this chapter, is established within the 
 32.2   department of administration.  The board has ten members. 
 32.3      (b) The lieutenant governor is a member. 
 32.4      (c) The governor must appoint four members.  
 32.5      (d) The mayor of St. Paul must appoint three members with 
 32.6   the advice and consent of the city council.  One of the mayor's 
 32.7   appointees must be a resident of the planning council district 
 32.8   that includes the capitol area. 
 32.9      (e) The speaker of the house must appoint a member of the 
 32.10  house of representatives and the president of the senate must 
 32.11  appoint a senator. 
 32.12     (f) Each appointee must qualify by taking the oath of 
 32.13  office. 
 32.14     Sec. 32.  Minnesota Statutes 2002, section 15.50, 
 32.15  subdivision 1, as amended by Laws 2003, chapter 17, section 1, 
 32.16  subdivision 4, is amended to read: 
 32.17     Subd. 4.  [EXECUTIVE SECRETARY, CLASSIFIED PERSONNEL, 
 32.18  CONTRACTORS.] (a) The commissioner of administration, after 
 32.19  consulting with the board, must appoint an executive secretary 
 32.20  to serve the board.  
 32.21     (b) The board commissioner may employ any other officers 
 32.22  and employees it the commissioner considers necessary.  Those 
 32.23  employed under this paragraph are in the state classified civil 
 32.24  service.  
 32.25     (c) The board may contract for professional and other 
 32.26  similar services on the terms it considers desirable. 
 32.27     (d) The commissioner must provide administrative support to 
 32.28  the board. 
 32.29     Sec. 33.  [15A.23] [POLITICAL SUBDIVISION COMPENSATION 
 32.30  LIMIT.] 
 32.31     (a) The salary and the value of all other forms of 
 32.32  compensation of a person employed by a political subdivision of 
 32.33  this state excluding a school district, or employed under 
 32.34  section 422A.03, may not exceed 95 percent of the salary of the 
 32.35  governor as set under section 15A.082, except as provided in 
 32.36  this section.  For purposes of this subdivision, "political 
 33.1   subdivision of this state" includes a statutory or home rule 
 33.2   charter city, county, town, metropolitan or regional agency, or 
 33.3   other political subdivision, but does not include a hospital, 
 33.4   clinic, or health maintenance organization owned by such a 
 33.5   governmental unit. 
 33.6      (b) Deferred compensation and payroll allocations to 
 33.7   purchase an individual annuity contract for an employee are 
 33.8   included in determining the employee's salary.  Other forms of 
 33.9   compensation which shall be included to determine an employee's 
 33.10  total compensation are all other direct and indirect items of 
 33.11  compensation which are not specifically excluded by this 
 33.12  section.  Other forms of compensation which shall not be 
 33.13  included in a determination of an employee's total compensation 
 33.14  for the purposes of this section are: 
 33.15     (1) employee benefits that are also provided for the 
 33.16  majority of all other full-time employees of the political 
 33.17  subdivision, vacation and sick leave allowances, health and 
 33.18  dental insurance, disability insurance, term life insurance, and 
 33.19  pension benefits or like benefits the cost of which is borne by 
 33.20  the employee or which is not subject to tax as income under the 
 33.21  Internal Revenue Code of 1986; 
 33.22     (2) dues paid to organizations that are of a civic, 
 33.23  professional, educational, or governmental nature; and 
 33.24     (3) reimbursement for actual expenses incurred by the 
 33.25  employee which the governing body determines to be directly 
 33.26  related to the performance of job responsibilities, including 
 33.27  any relocation expenses paid during the initial year of 
 33.28  employment. 
 33.29     The value of other forms of compensation shall be the 
 33.30  annual cost to the political subdivision for the provision of 
 33.31  the compensation.  
 33.32     (c) The salary of a medical doctor or doctor of osteopathy 
 33.33  occupying a position that the governing body of the political 
 33.34  subdivision has determined requires an M.D. or D.O. degree is 
 33.35  excluded from the limitation in this section. 
 33.36     (d) The state auditor may increase the limitation in this 
 34.1   section for a position that the state auditor has determined 
 34.2   requires special expertise necessitating a higher salary to 
 34.3   attract or retain a qualified person.  The state auditor shall 
 34.4   review each proposed increase giving due consideration to salary 
 34.5   rates paid to other persons with similar responsibilities in the 
 34.6   state and nation. 
 34.7      Before granting an increase in the limitation, the state 
 34.8   auditor must submit the proposed increase to the legislative 
 34.9   coordinating commission for its review and recommendation.  The 
 34.10  recommendation is advisory only.  If the commission fails to 
 34.11  make a recommendation with 30 days from its receipt of the 
 34.12  proposal, it is deemed to have made no recommendation.  The 
 34.13  state auditor may charge and collect, pursuant to section 6.56, 
 34.14  a fee from political subdivisions proposing a limitation 
 34.15  increase to cover the cost incurred by the state auditor under 
 34.16  this subdivision.  
 34.17     Sec. 34.  Minnesota Statutes 2002, section 16A.102, 
 34.18  subdivision 1, is amended to read: 
 34.19     Subdivision 1.  [GOVERNOR'S RECOMMENDATION.] By the fourth 
 34.20  Tuesday in January of each odd-numbered year date specified in 
 34.21  section 16A.11, subdivision 1, for submission of parts one and 
 34.22  two of the governor's budget, the governor shall submit to the 
 34.23  legislature a recommended revenue target for the next two 
 34.24  bienniums.  The recommended revenue target must specify: 
 34.25     (1) the maximum share of Minnesota personal income to be 
 34.26  collected in taxes and other revenues to pay for state and local 
 34.27  government services; 
 34.28     (2) the division of the share between state and local 
 34.29  government revenues; and 
 34.30     (3) the mix and rates of income, sales, and other state and 
 34.31  local taxes including property taxes and other revenues.  
 34.32  The recommendations must be based on the November forecast 
 34.33  prepared under section 16A.103. 
 34.34     Sec. 35.  Minnesota Statutes 2002, section 16A.11, 
 34.35  subdivision 3, is amended to read: 
 34.36     Subd. 3.  [PART TWO:  DETAILED BUDGET.] (a) Part two of the 
 35.1   budget, the detailed budget estimates both of expenditures and 
 35.2   revenues, must contain any statements on the financial plan 
 35.3   which the governor believes desirable or which may be required 
 35.4   by the legislature.  The detailed estimates shall include the 
 35.5   governor's budget arranged in tabular form. 
 35.6      (b) The detailed estimates must include a separate line 
 35.7   listing the total number of professional or technical service 
 35.8   contracts and the total cost of those professional and technical 
 35.9   service contracts for the prior biennium and the 
 35.10  projected number of professional or technical service contracts 
 35.11  and the projected costs of those contracts for the current and 
 35.12  upcoming biennium.  They must also include a summary of the 
 35.13  personnel employed by the agency, reflected as full-time 
 35.14  equivalent positions, and the number of professional or 
 35.15  technical service consultants for the current biennium. 
 35.16     (c) The detailed estimates for internal service funds must 
 35.17  include the number of full-time equivalents by program; detail 
 35.18  on any loans from the general fund, including dollar amounts by 
 35.19  program; proposed investments in technology or equipment of 
 35.20  $100,000 or more; an explanation of any operating losses or 
 35.21  increases in retained earnings; and a history of the rates that 
 35.22  have been charged, with an explanation of any rate changes and 
 35.23  the impact of the rate changes on affected agencies. 
 35.24     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 35.25  following final enactment. 
 35.26     Sec. 36.  Minnesota Statutes 2002, section 16A.17, is 
 35.27  amended by adding a subdivision to read: 
 35.28     Subd. 10.  [DIRECT DEPOSIT.] Notwithstanding section 
 35.29  177.23, the commissioner may require direct deposit for all 
 35.30  state employees that are being paid by the state payroll system. 
 35.31     Sec. 37.  Minnesota Statutes 2002, section 16A.40, is 
 35.32  amended to read: 
 35.33     16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 
 35.34     Money must not be paid out of the state treasury except 
 35.35  upon the warrant of the commissioner or an electronic fund 
 35.36  transfer approved by the commissioner.  Warrants must be drawn 
 36.1   on printed blanks that are in numerical order.  The commissioner 
 36.2   shall enter, in numerical order in a warrant register, the 
 36.3   number, amount, date, and payee for every warrant issued. 
 36.4      The commissioner may require payees receiving more than ten 
 36.5   payments or $10,000 per year must to supply the commissioner 
 36.6   with their bank routing information to enable the payments to be 
 36.7   made through an electronic fund transfer. 
 36.8      Sec. 38.  Minnesota Statutes 2002, section 16A.501, is 
 36.9   amended to read: 
 36.10     16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.] 
 36.11     The commissioner of finance must report annually to the 
 36.12  legislature on the degree to which entities receiving 
 36.13  appropriations for capital projects in previous omnibus capital 
 36.14  improvement acts have encumbered or expended that money.  The 
 36.15  report must be submitted to the chairs of the house of 
 36.16  representatives ways and means committee and the senate finance 
 36.17  committee by February January 1 of each year. 
 36.18     Sec. 39.  Minnesota Statutes 2002, section 16A.642, 
 36.19  subdivision 1, is amended to read: 
 36.20     Subdivision 1.  [REPORTS.] (a) The commissioner of finance 
 36.21  shall report to the chairs of the senate committee on finance 
 36.22  and the house of representatives committees on ways and means 
 36.23  and on capital investment by February January 1 of each 
 36.24  odd-numbered year on the following: 
 36.25     (1) all laws authorizing the issuance of state bonds or 
 36.26  appropriating general fund money for state or local government 
 36.27  capital investment projects enacted more than four years before 
 36.28  February January 1 of that odd-numbered year; the projects 
 36.29  authorized to be acquired and constructed for which less than 
 36.30  100 percent of the authorized total cost has been expended, 
 36.31  encumbered, or otherwise obligated; the cost of contracts to be 
 36.32  let in accordance with existing plans and specifications shall 
 36.33  be considered expended for this report; and the amount of 
 36.34  general fund money appropriated but not spent or otherwise 
 36.35  obligated, and the amount of bonds not issued and bond proceeds 
 36.36  held but not previously expended, encumbered, or otherwise 
 37.1   obligated for these projects; and 
 37.2      (2) all laws authorizing the issuance of state bonds or 
 37.3   appropriating general fund money for state or local government 
 37.4   capital programs or projects other than those described in 
 37.5   clause (1), enacted more than four years before February January 
 37.6   1 of that odd-numbered year; and the amount of general fund 
 37.7   money appropriated but not spent or otherwise obligated, and the 
 37.8   amount of bonds not issued and bond proceeds held but not 
 37.9   previously expended, encumbered, or otherwise obligated for 
 37.10  these programs and projects. 
 37.11     (b) The commissioner shall also report on general fund 
 37.12  appropriations for capital projects, bond authorizations or bond 
 37.13  proceed balances that may be canceled because projects have been 
 37.14  canceled, completed, or otherwise concluded, or because the 
 37.15  purposes for which the money was appropriated or bonds were 
 37.16  authorized or issued have been canceled, completed, or otherwise 
 37.17  concluded.  The general fund appropriations, bond authorizations 
 37.18  or bond proceed balances that are unencumbered or otherwise not 
 37.19  obligated that are reported by the commissioner under this 
 37.20  subdivision are canceled, effective July 1 of the year of the 
 37.21  report, unless specifically reauthorized by act of the 
 37.22  legislature. 
 37.23     Sec. 40.  Minnesota Statutes 2002, section 16B.054, is 
 37.24  amended to read: 
 37.25     16B.054 [DEVELOPMENTAL DISABILITIES.] 
 37.26     The department of administration is designated as the 
 37.27  responsible agency to assist the Minnesota governor's council on 
 37.28  developmental disabilities in carrying out all responsibilities 
 37.29  under United States Code, title 42, section 6021 et seq. the 
 37.30  Developmental Disabilities Assistance and Bill of Rights Act of 
 37.31  2000, also known as United States Code, title 42, sections 15001 
 37.32  to 15115, and Public Law 106-402 (October 30, 2000, 106th 
 37.33  Congress), as well as those responsibilities relating to the 
 37.34  program which are not delegated to the council. 
 37.35     Sec. 41.  Minnesota Statutes 2002, section 16B.24, 
 37.36  subdivision 1, is amended to read: 
 38.1      Subdivision 1.  [OPERATION AND MAINTENANCE OF BUILDINGS.] 
 38.2   The commissioner is authorized to maintain and operate the state 
 38.3   capitol building and grounds, subject to whatever standards and 
 38.4   policies are set for its appearance and cleanliness by the 
 38.5   capitol area architectural and planning board and the 
 38.6   commissioner under section 15.50, subdivision 2, clause (j), and 
 38.7   all other buildings, cafeterias, and grounds in state-owned 
 38.8   buildings in the capitol area under section 15.50, subdivision 
 38.9   2, clause (a), the state department of public safety, bureau of 
 38.10  criminal apprehension building in St. Paul, the state department 
 38.11  of health building in Minneapolis, the Duluth government 
 38.12  services center in Duluth, 321 Grove Street buildings in St. 
 38.13  Paul, any other properties acquired by the department of 
 38.14  administration, and, when the commissioner considers it 
 38.15  advisable and practicable, any other building or premises owned 
 38.16  or rented by the state for the use of a state agency.  The 
 38.17  commissioner shall assign and reassign office space in the 
 38.18  capitol and state buildings to make an equitable division of 
 38.19  available space among agencies.  The commissioner shall 
 38.20  regularly update the long-range strategic plan for locating 
 38.21  agencies and shall follow the plan in assigning and reassigning 
 38.22  space to agencies.  The plan must include locational and urban 
 38.23  design criteria, a cost-analysis method to be used in weighing 
 38.24  state ownership against leasing of space in specific instances, 
 38.25  and a transportation management plan.  If the commissioner 
 38.26  determines that a deviation from the plan is necessary or 
 38.27  desirable in a specific instance, the commissioner shall provide 
 38.28  the legislature with a timely written explanation of the reasons 
 38.29  for the deviation.  The power granted in this subdivision does 
 38.30  not apply to state hospitals or to educational, penal, 
 38.31  correctional, or other institutions not enumerated in this 
 38.32  subdivision the control of which is vested by law in some other 
 38.33  agency. 
 38.34     Sec. 42.  Minnesota Statutes 2002, section 16B.24, 
 38.35  subdivision 5, is amended to read: 
 38.36     Subd. 5.  [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 
 39.1   The commissioner may rent out state property, real or personal, 
 39.2   that is not needed for public use, if the rental is not 
 39.3   otherwise provided for or prohibited by law.  The property may 
 39.4   not be rented out for more than five years at a time without the 
 39.5   approval of the state executive council and may never be rented 
 39.6   out for more than 25 years.  A rental agreement may provide that 
 39.7   the state will reimburse a tenant for a portion of capital 
 39.8   improvements that the tenant makes to state real property if the 
 39.9   state does not permit the tenant to renew the lease at the end 
 39.10  of the rental agreement. 
 39.11     (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 
 39.12  trust fund lands, other state lands under the jurisdiction of 
 39.13  the department of natural resources, lands forfeited for 
 39.14  delinquent taxes, lands acquired under section 298.22, or lands 
 39.15  acquired under section 41.56 which are under the jurisdiction of 
 39.16  the department of agriculture.  
 39.17     (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
 39.18  Chapel, located within the boundaries of Fort Snelling State 
 39.19  Park, is available for use only on payment of a rental fee.  The 
 39.20  commissioner shall establish rental fees for both public and 
 39.21  private use.  The rental fee for private use by an organization 
 39.22  or individual must reflect the reasonable value of equivalent 
 39.23  rental space.  Rental fees collected under this section must be 
 39.24  deposited in the general fund.  
 39.25     (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
 39.26  shall establish rental rates for all living accommodations 
 39.27  provided by the state for its employees.  Money collected as 
 39.28  rent by state agencies pursuant to this paragraph must be 
 39.29  deposited in the state treasury and credited to the general fund.
 39.30     (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
 39.31  AGENCIES.] The commissioner may lease portions of the 
 39.32  state-owned buildings in the capitol complex, the capitol square 
 39.33  building, the health building, the Duluth government center, and 
 39.34  the building at 1246 University Avenue, St. Paul, Minnesota, to 
 39.35  state agencies and the court administrator on behalf of the 
 39.36  judicial branch of state government and charge rent on the basis 
 40.1   of space occupied.  Notwithstanding any law to the contrary, all 
 40.2   money collected as rent pursuant to the terms of this section 
 40.3   shall be deposited in the state treasury.  Money collected as 
 40.4   rent to recover the bond interest costs of a building funded 
 40.5   from the state bond proceeds fund shall be credited to the 
 40.6   general fund.  Money collected as rent to recover the 
 40.7   depreciation costs of a building funded from the state bond 
 40.8   proceeds fund and money collected as rent to recover capital 
 40.9   expenditures from capital asset preservation and replacement 
 40.10  appropriations and statewide building access appropriations 
 40.11  shall be credited to a segregated account in a special revenue 
 40.12  fund.  Fifty percent of the money credited to the account each 
 40.13  fiscal year must be transferred to the general fund.  The 
 40.14  remaining money in the account is appropriated to the 
 40.15  commissioner to be expended for asset preservation projects as 
 40.16  determined by the commissioner.  Money collected as rent to 
 40.17  recover the depreciation and interest costs of a building built 
 40.18  with other state dedicated funds shall be credited to the 
 40.19  dedicated fund which funded the original acquisition or 
 40.20  construction.  All other money received shall be credited to the 
 40.21  general services revolving fund. 
 40.22     Sec. 43.  Minnesota Statutes 2002, section 16B.33, 
 40.23  subdivision 3, is amended to read: 
 40.24     Subd. 3.  [AGENCIES MUST REQUEST DESIGNER.] (a) 
 40.25  [APPLICATION.] Upon undertaking a project with an estimated cost 
 40.26  greater than $750,000 $2,000,000 or a planning project with 
 40.27  estimated fees greater than $60,000 $200,000, every user agency, 
 40.28  except the capitol area architectural and planning board, shall 
 40.29  submit a written request for a primary designer for its project 
 40.30  to the commissioner, who shall forward the request to the 
 40.31  board.  The University of Minnesota and the Minnesota state 
 40.32  colleges and universities shall follow the process in 
 40.33  subdivision 3a to select designers for their projects.  The 
 40.34  written request must include a description of the project, the 
 40.35  estimated cost of completing the project, a description of any 
 40.36  special requirements or unique features of the proposed project, 
 41.1   and other information which will assist the board in carrying 
 41.2   out its duties and responsibilities set forth in this section.  
 41.3      (b)  [REACTIVATED PROJECT.] If a project for which a 
 41.4   designer has been selected by the board becomes inactive, 
 41.5   lapses, or changes as a result of project phasing, insufficient 
 41.6   appropriations, or other reasons, the commissioner, the 
 41.7   Minnesota state colleges and universities, or the University of 
 41.8   Minnesota may, if the project is reactivated, retain the same 
 41.9   designer to complete the project.  
 41.10     (c)  [FEE LIMIT REACHED AFTER DESIGNER SELECTED.] If a 
 41.11  project initially estimated to be below the cost and planning 
 41.12  fee limits of this subdivision has its cost or planning fees 
 41.13  revised so that the limits are exceeded, the project must be 
 41.14  referred to the board for designer selection even if a primary 
 41.15  designer has already been selected.  In this event, the board 
 41.16  may, without conducting interviews, elect to retain the 
 41.17  previously selected designer if it determines that the interests 
 41.18  of the state are best served by that decision and shall notify 
 41.19  the commissioner of its determination. 
 41.20     Sec. 44.  Minnesota Statutes 2002, section 16B.35, 
 41.21  subdivision 1, is amended to read: 
 41.22     Subdivision 1.  [PERCENT OF APPROPRIATIONS FOR ART.] An 
 41.23  appropriation for the construction or alteration of any state 
 41.24  building may contain an amount not to exceed the lesser of 
 41.25  $100,000 or one percent of the total appropriation for the 
 41.26  building for the acquisition of works of art, excluding 
 41.27  landscaping, which may be an integral part of the building or 
 41.28  its grounds, attached to the building or grounds or capable of 
 41.29  being displayed in other state buildings.  If the appropriation 
 41.30  for works of art is limited by the $100,000 cap in this section, 
 41.31  the appropriation for the construction or alteration of the 
 41.32  building must be reduced to reflect the reduced amount that will 
 41.33  be spent on works of art.  Money used for this purpose is 
 41.34  available only for the acquisition of works of art to be 
 41.35  exhibited in areas of a building or its grounds accessible, on a 
 41.36  regular basis, to members of the public.  No more than ten 
 42.1   percent of the total amount available each fiscal year under 
 42.2   this subdivision may be used for administrative expenses, either 
 42.3   by the commissioner of administration or by any other entity to 
 42.4   whom the commissioner delegates administrative authority.  For 
 42.5   the purposes of this section "state building" means a building 
 42.6   the construction or alteration of which is paid for wholly or in 
 42.7   part by the state. 
 42.8      Sec. 45.  Minnesota Statutes 2002, section 16B.465, 
 42.9   subdivision 1a, is amended to read: 
 42.10     Subd. 1a.  [CREATION.] Except as provided in subdivision 4, 
 42.11  the commissioner, through the state information infrastructure, 
 42.12  shall arrange for the provision of voice, data, video, and other 
 42.13  telecommunications transmission services to state agencies.  The 
 42.14  state information infrastructure may also serve educational 
 42.15  institutions, including public schools as defined in section 
 42.16  120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 
 42.17  religious organization schools that provide instruction in 
 42.18  compliance with sections 120A.22, 120A.24, and 120A.41, and 
 42.19  private colleges; public corporations; Indian tribal 
 42.20  governments; and state political subdivisions; and public 
 42.21  noncommercial educational television broadcast stations as 
 42.22  defined in section 129D.12, subdivision 2.  It is not a 
 42.23  telephone company for purposes of chapter 237.  The commissioner 
 42.24  may purchase, own, or lease any telecommunications network 
 42.25  facilities or equipment after first seeking bids or proposals 
 42.26  and having determined that the private sector cannot, will not, 
 42.27  or is unable to provide these services, facilities, or equipment 
 42.28  as bid or proposed in a reasonable or timely fashion consistent 
 42.29  with policy set forth in this section.  The commissioner shall 
 42.30  not resell or sublease any services or facilities to nonpublic 
 42.31  entities except to serve private schools and colleges.  The 
 42.32  commissioner has the responsibility for planning, development, 
 42.33  and operations of the state information infrastructure in order 
 42.34  to provide cost-effective telecommunications transmission 
 42.35  services to state information infrastructure users consistent 
 42.36  with the policy set forth in this section. 
 43.1      Sec. 46.  Minnesota Statutes 2002, section 16B.465, 
 43.2   subdivision 7, is amended to read: 
 43.3      Subd. 7.  [EXEMPTION.] The system is exempt from the 
 43.4   five-year limitation on contracts set by sections 16C.05, 
 43.5   subdivision 2, paragraph (a), clause (5) (b), 16C.08, 
 43.6   subdivision 3, clause (7) (5), and 16C.09, clause (6) (5). 
 43.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 43.8   following final enactment. 
 43.9      Sec. 47.  Minnesota Statutes 2002, section 16B.47, is 
 43.10  amended to read: 
 43.11     16B.47 [MICROGRAPHICS.] 
 43.12     The commissioner shall may provide micrographics services 
 43.13  and products to meet agency needs.  Within available resources, 
 43.14  the commissioner may also provide micrographic services to 
 43.15  political subdivisions.  Agency plans and programs for 
 43.16  micrographics must be submitted to and receive the approval of 
 43.17  the commissioner prior to implementation.  Upon the 
 43.18  commissioner's approval, subsidiary or independent microfilm 
 43.19  operations may be implemented in other state agencies.  The 
 43.20  commissioner may direct that copies of official state documents 
 43.21  be distributed to official state depositories on microfilm.  
 43.22     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 43.23  following final enactment. 
 43.24     Sec. 48.  Minnesota Statutes 2002, section 16B.48, 
 43.25  subdivision 2, is amended to read: 
 43.26     Subd. 2.  [PURPOSE OF FUNDS.] Money in the state treasury 
 43.27  credited to the general services revolving fund and money that 
 43.28  is deposited in the fund is appropriated annually to the 
 43.29  commissioner for the following purposes:  
 43.30     (1) to operate a central store and equipment service; 
 43.31     (2) to operate a central duplication and printing service; 
 43.32     (3) to operate the central mailing service, including 
 43.33  purchasing postage and related items and refunding postage 
 43.34  deposits; 
 43.35     (4) (3) to operate a documents service as prescribed by 
 43.36  section 16B.51; 
 44.1      (5) (4) to provide services for the maintenance, operation, 
 44.2   and upkeep of buildings and grounds managed by the commissioner 
 44.3   of administration; 
 44.4      (6) (5) to operate a materials handling service, including 
 44.5   interagency mail and product delivery, solid waste removal, 
 44.6   courier service, equipment rental, and vehicle and equipment 
 44.7   maintenance; 
 44.8      (7) (6) to provide analytical, statistical, and 
 44.9   organizational development services to state agencies, local 
 44.10  units of government, metropolitan and regional agencies, and 
 44.11  school districts; 
 44.12     (8) (7) to operate a records center and provide 
 44.13  micrographics products and services; and 
 44.14     (9) (8) to perform services for any other agency.  Money 
 44.15  may be expended for this purpose only when directed by the 
 44.16  governor. The agency receiving the services shall reimburse the 
 44.17  fund for their cost, and the commissioner shall make the 
 44.18  appropriate transfers when requested.  The term "services" as 
 44.19  used in this clause means compensation paid officers and 
 44.20  employees of the state government; supplies, materials, 
 44.21  equipment, and other articles and things used by or furnished to 
 44.22  an agency; and utility services and other services for the 
 44.23  maintenance, operation, and upkeep of buildings and offices of 
 44.24  the state government. 
 44.25     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 44.26  following final enactment. 
 44.27     Sec. 49.  Minnesota Statutes 2002, section 16B.49, is 
 44.28  amended to read: 
 44.29     16B.49 [CENTRAL MAILING SYSTEM.] 
 44.30     The commissioner shall may maintain and operate for state 
 44.31  agencies, departments, institutions, and offices a central mail 
 44.32  handling unit.  Official, outgoing mail for units in St. Paul 
 44.33  must may be required to be delivered unstamped to the unit.  The 
 44.34  unit shall may also operate an interoffice mail distribution 
 44.35  system.  The department may add personnel and acquire equipment 
 44.36  that may be necessary to operate the unit efficiently and 
 45.1   cost-effectively.  Account must be kept of the postage required 
 45.2   on that mail, which is then a proper charge against the agency 
 45.3   delivering the mail.  To provide funds for the payment of 
 45.4   postage, each agency shall may be required to make advance 
 45.5   payments to the commissioner sufficient to cover its postage 
 45.6   obligations for at least 60 days.  For purposes of this section, 
 45.7   the Minnesota state colleges and universities is a state agency. 
 45.8      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 45.9   following final enactment. 
 45.10     Sec. 50.  Minnesota Statutes 2002, section 16B.58, is 
 45.11  amended by adding a subdivision to read: 
 45.12     Subd. 6a.  [PARKING RESTRICTIONS.] Notwithstanding any law 
 45.13  to the contrary: 
 45.14     (1) parking is prohibited in the terraces adjacent to the 
 45.15  carriage entrance on the south side of the capitol building; 
 45.16     (2) the ten parking spaces on Aurora Avenue closest to the 
 45.17  main entrance of the capitol building must be reserved for 
 45.18  parking by physically disabled persons displaying a certificate 
 45.19  issued under section 169.345; and 
 45.20     (3) the remainder of the parking spaces on Aurora Avenue 
 45.21  must be reserved for the general public during legislative 
 45.22  session. 
 45.23     Sec. 51.  Minnesota Statutes 2002, section 16B.61, 
 45.24  subdivision 1a, is amended to read: 
 45.25     Subd. 1a.  [ADMINISTRATION BY COMMISSIONER.] The 
 45.26  commissioner shall administer and enforce the State Building 
 45.27  Code as a municipality with respect to public buildings and 
 45.28  state licensed facilities in the state.  The commissioner shall 
 45.29  establish appropriate permit, plan review, and inspection fees 
 45.30  for public buildings and state licensed facilities.  Fees and 
 45.31  surcharges for public buildings and state licensed facilities 
 45.32  must be remitted to the commissioner, who shall deposit them in 
 45.33  the state treasury for credit to the special revenue fund. 
 45.34     Municipalities other than the state having a contractual an 
 45.35  agreement with the commissioner for code administration and 
 45.36  enforcement service for public buildings and state licensed 
 46.1   facilities shall charge their customary fees, including 
 46.2   surcharge, to be paid directly to the contractual jurisdiction 
 46.3   by the applicant seeking authorization to construct a public 
 46.4   building or a state licensed facility.  The commissioner shall 
 46.5   contract sign an agreement with a municipality other than the 
 46.6   state for plan review, code administration, and code enforcement 
 46.7   service for public buildings and state licensed facilities in 
 46.8   the contractual jurisdiction if the building officials of the 
 46.9   municipality meet the requirements of section 16B.65 and wish to 
 46.10  provide those services and if the commissioner determines that 
 46.11  the municipality has enough adequately trained and qualified 
 46.12  building inspectors to provide those services for the 
 46.13  construction project. 
 46.14     The commissioner may direct the state building official to 
 46.15  assist a community that has been affected by a natural disaster 
 46.16  with building evaluation and other activities related to 
 46.17  building codes. 
 46.18     Administration and enforcement in a municipality under this 
 46.19  section must apply any optional provisions of the State Building 
 46.20  Code adopted by the municipality.  A municipality adopting any 
 46.21  optional code provision shall notify the state building official 
 46.22  within 30 days of its adoption. 
 46.23     The commissioner shall administer and enforce the 
 46.24  provisions of the code relating to elevators statewide, except 
 46.25  as provided for under section 16B.747, subdivision 3. 
 46.26     Sec. 52.  Minnesota Statutes 2002, section 16B.62, 
 46.27  subdivision 1, is amended to read: 
 46.28     Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The State Building 
 46.29  Code applies statewide and supersedes the building code of any 
 46.30  municipality.  A municipality must not by ordinance or through 
 46.31  development agreement require building code provisions 
 46.32  regulating components or systems of any residential structure 
 46.33  that are different from any provision of the State Building 
 46.34  Code.  A municipality may, with the approval of the state 
 46.35  building official, adopt an ordinance that is more restrictive 
 46.36  than the State Building Code where geological conditions warrant 
 47.1   a more restrictive ordinance.  A municipality may appeal the 
 47.2   disapproval of a more restrictive ordinance to the 
 47.3   commissioner.  An appeal under this subdivision is subject to 
 47.4   the schedule, fee, procedures, cost provisions, and appeal 
 47.5   rights set out in section 16B.67.  The State Building Code does 
 47.6   not apply to agricultural buildings except with respect to state 
 47.7   inspections required or rulemaking authorized by sections 
 47.8   103F.141, 216C.19, subdivision 8, and 326.244.  All 
 47.9   municipalities shall adopt and enforce the State Building Code 
 47.10  with respect to new construction within their respective 
 47.11  jurisdictions.  
 47.12     If a city has adopted or is enforcing the State Building 
 47.13  Code on June 3, 1977, or determines by ordinance after that date 
 47.14  to undertake enforcement, it shall enforce the code within the 
 47.15  city.  A city may by ordinance and with permission of the 
 47.16  township board extend the enforcement of the code to contiguous 
 47.17  unincorporated territory not more than two miles distant from 
 47.18  its corporate limits in any direction if the code is not in 
 47.19  effect in the territory.  Where two or more noncontiguous cities 
 47.20  which have elected to enforce the code have boundaries less than 
 47.21  four miles apart, each is authorized to enforce the code on its 
 47.22  side of a line equidistant between them.  Once enforcement 
 47.23  authority is extended extraterritorially by ordinance, the 
 47.24  authority may continue to be exercised in the designated 
 47.25  territory even though another city less than four miles distant 
 47.26  later elects to enforce the code.  After the extension, the city 
 47.27  may enforce the code in the designated area to the same extent 
 47.28  as if the property were situated within its corporate limits.  
 47.29     Enforcement of the code in an extended area outside a 
 47.30  city's corporate limits includes all rules, laws, and ordinances 
 47.31  associated with administration of the code. 
 47.32     A city which, on June 3, 1977, had not adopted the code may 
 47.33  not commence enforcement of the code within or outside of its 
 47.34  jurisdiction until it has provided written notice to the 
 47.35  commissioner, the county auditor, and the town clerk of each 
 47.36  town in which it intends to enforce the code.  A public hearing 
 48.1   on the proposed enforcement must be held not less than 30 days 
 48.2   after the notice has been provided.  Enforcement of the code by 
 48.3   the city outside of its jurisdiction commences on the first day 
 48.4   of January in the year following the notice and hearing.  
 48.5      Municipalities may provide for the issuance of permits, 
 48.6   inspection, and enforcement within their jurisdictions by means 
 48.7   which are convenient, and lawful, including by means of 
 48.8   contracts with other municipalities pursuant to section 471.59, 
 48.9   and with qualified individuals.  The other municipalities or 
 48.10  qualified individuals may be reimbursed by retention or 
 48.11  remission of some or all of the building permit fee collected or 
 48.12  by other means.  In areas of the state where inspection and 
 48.13  enforcement is unavailable from qualified employees of 
 48.14  municipalities, the commissioner shall train and designate 
 48.15  individuals available to carry out inspection and enforcement on 
 48.16  a fee basis.  Nothing in this section prohibits a municipality 
 48.17  from adopting ordinances relating to zoning, subdivision, or 
 48.18  planning unless the ordinance conflicts with a provision of the 
 48.19  State Building Code that regulates components or systems of any 
 48.20  residential structure. 
 48.21     Sec. 53.  [16C.045] [REPORTING OF VIOLATIONS] 
 48.22     A state employee who discovers evidence of violation of 
 48.23  laws or rules governing state contracts is encouraged to report 
 48.24  the violation or suspected violation to the employee's 
 48.25  supervisor, the commissioner or the commissioner's designee, or 
 48.26  the legislative auditor.  The legislative auditor must report to 
 48.27  the legislative coordinating commission if there are multiple 
 48.28  complaints about the same agency.  The auditor's report to the 
 48.29  legislative coordinating commission under this section must 
 48.30  disclose only the number and type of violations alleged.  An 
 48.31  employee making a good faith report under this section is 
 48.32  covered by section 181.932, prohibiting the employer from 
 48.33  discriminating against the employee. 
 48.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 48.35  following final enactment. 
 48.36     Sec. 54.  Minnesota Statutes 2002, section 16C.05, 
 49.1   subdivision 2, is amended to read: 
 49.2      Subd. 2.  [CREATION AND VALIDITY OF CONTRACTS.] (a) A 
 49.3   contract is not valid and the state is not bound by it and no 
 49.4   agency, without the prior written approval of the commissioner, 
 49.5   may authorize work to begin on it unless: 
 49.6      (1) it has first been executed by the head of the agency or 
 49.7   a delegate who is a party to the contract; 
 49.8      (2) it has been approved by the commissioner; and 
 49.9      (3) it has been approved by the attorney general or a 
 49.10  delegate as to form and execution; 
 49.11     (4) the accounting system shows an obligation in an expense 
 49.12  budget or encumbrance for the amount of the contract liability; 
 49.13  and. 
 49.14     (5) (b) The combined contract and amendments shall must not 
 49.15  exceed five years without specific, written approval by the 
 49.16  commissioner according to established policy, procedures, and 
 49.17  standards, or unless otherwise provided for by law.  The term of 
 49.18  the original contract must not exceed two years unless the 
 49.19  commissioner determines that a longer duration is in the best 
 49.20  interest of the state.  Before approving a contract amendment or 
 49.21  extension, the commissioner must determine that:  (1) the goods 
 49.22  or services to be obtained under the amendment or extension are 
 49.23  substantially similar to those in the original contract; and (2) 
 49.24  the contracting agency has demonstrated that the benefits to the 
 49.25  agency of full and open competition do not justify the time and 
 49.26  expense of a separate solicitation for the goods or services 
 49.27  included in the contract amendment or extension.  When the 
 49.28  commissioner approves a contract amendment or extension, the 
 49.29  commissioner must post a summary of the approval on the 
 49.30  department's Web site for at least 60 days.  The summary must 
 49.31  include the contract number, agency name, vendor, and the dollar 
 49.32  amount of the contract amendment or extension. 
 49.33     (b) (c) Grants, interagency agreements, purchase orders, 
 49.34  work orders, and annual plans need not, in the discretion of the 
 49.35  commissioner and attorney general, require the signature of the 
 49.36  commissioner and/or the attorney general.  A signature is not 
 50.1   required for work orders and amendments to work orders related 
 50.2   to department of transportation contracts.  Bond purchase 
 50.3   agreements by the Minnesota public facilities authority do not 
 50.4   require the approval of the commissioner.  
 50.5      (c) (d) A fully executed copy of every contract, amendments 
 50.6   to the contract, and performance evaluations relating to the 
 50.7   contract must be kept on file at the contracting agency for a 
 50.8   time equal to that specified for contract vendors and other 
 50.9   parties in subdivision 5. 
 50.10     (e) No action may be maintained by a contractor against an 
 50.11  employee or agency who discloses information about a current or 
 50.12  former contractor in a performance evaluation, including 
 50.13  performance evaluations required under section 16C.08, 
 50.14  subdivision 4a, unless the contractor demonstrates by clear and 
 50.15  convincing evidence that: 
 50.16     (1) the information was false and defamatory; 
 50.17     (2) the employee or agency knew or should have known the 
 50.18  information was false and acted with malicious intent to injure 
 50.19  the current or former contractor; and 
 50.20     (3) the information was acted upon in a manner that caused 
 50.21  harm to the current or former contractor. 
 50.22     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 50.23  following final enactment. 
 50.24     Sec. 55.  Minnesota Statutes 2002, section 16C.08, 
 50.25  subdivision 2, is amended to read: 
 50.26     Subd. 2.  [DUTIES OF CONTRACTING AGENCY.] (a) Before an 
 50.27  agency may seek approval of a professional or technical services 
 50.28  contract valued in excess of $5,000, it must certify to the 
 50.29  commissioner that provide the following:  
 50.30     (1) a description of how the proposed contract or amendment 
 50.31  is necessary and reasonable to advance the statutory mission of 
 50.32  the agency; 
 50.33     (2) a description of the agency's plan to notify firms or 
 50.34  individuals who may be available to perform the services called 
 50.35  for in the solicitation; and 
 50.36     (3) a description of the performance measures or other 
 51.1   tools that will be used to monitor and evaluate contract 
 51.2   performance. 
 51.3      (b) In addition to the information in paragraph (a), 
 51.4   clauses (1) to (3), the agency must certify that: 
 51.5      (1) no current state employee is able and available to 
 51.6   perform the services called for by the contract; 
 51.7      (2) the normal competitive bidding mechanisms will not 
 51.8   provide for adequate performance of the services; 
 51.9      (3) the contractor has certified that the product of the 
 51.10  services will be original in character; 
 51.11     (4) (2) reasonable efforts were will be made to publicize 
 51.12  the availability of the contract to the public; 
 51.13     (5) the agency has received, reviewed, and accepted a 
 51.14  detailed work plan from the contractor for performance under the 
 51.15  contract, if applicable; 
 51.16     (6) (3) the agency has developed, will develop and fully 
 51.17  intends to implement, a written plan providing for the 
 51.18  assignment of specific agency personnel to a monitoring and 
 51.19  liaison function, the periodic review of interim reports or 
 51.20  other indications of past performance, and the ultimate 
 51.21  utilization of the final product of the services; and 
 51.22     (7) (4) the agency will not allow the contractor to begin 
 51.23  work before the contract is fully executed unless an exception 
 51.24  has been approved by the commissioner and funds are fully 
 51.25  encumbered.; 
 51.26     (5) the contract will not establish an employment 
 51.27  relationship between the state or the agency and any persons 
 51.28  performing under the contract; and 
 51.29     (6) in the event the results of the contract work will be 
 51.30  carried out or continued by state employees upon completion of 
 51.31  the contract, the contractor is required to include state 
 51.32  employees in development and training, to the extent necessary 
 51.33  to ensure that after completion of the contract, state employees 
 51.34  can perform any ongoing work related to the same function. 
 51.35     (c) A contract establishes an employment relationship for 
 51.36  purposes of paragraph (b), clause (5), if, under federal laws 
 52.1   governing the distinction between an employee and an independent 
 52.2   contractor, a person would be considered an employee. 
 52.3      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 52.4   following final enactment. 
 52.5      Sec. 56.  Minnesota Statutes 2002, section 16C.08, 
 52.6   subdivision 3, is amended to read: 
 52.7      Subd. 3.  [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 
 52.8   CONTRACTS.] Before approving a proposed contract for 
 52.9   professional or technical services, the commissioner must 
 52.10  determine, at least, that: 
 52.11     (1) all provisions of subdivision 2 and section 16C.16 have 
 52.12  been verified or complied with; 
 52.13     (2) the agency has demonstrated that the work to be 
 52.14  performed under the contract is necessary to the agency's 
 52.15  achievement of its statutory responsibilities and there is 
 52.16  statutory authority to enter into the contract; 
 52.17     (3) the contract will not establish an employment 
 52.18  relationship between the state or the agency and any persons 
 52.19  performing under the contract; 
 52.20     (4) the contractor and agents are not employees of the 
 52.21  state; 
 52.22     (5) no agency has previously performed or contracted for 
 52.23  the performance of tasks which would be substantially duplicated 
 52.24  under the proposed contract; 
 52.25     (6) (4) the contracting agency has specified a satisfactory 
 52.26  method of evaluating and using the results of the work to be 
 52.27  performed; and 
 52.28     (7) (5) the combined contract and amendments will not 
 52.29  exceed five years, unless otherwise provided for by law.  The 
 52.30  term of the original contract must not exceed two years unless 
 52.31  the commissioner determines that a longer duration is in the 
 52.32  best interest of the state. 
 52.33     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 52.34  following final enactment. 
 52.35     Sec. 57.  Minnesota Statutes 2002, section 16C.08, 
 52.36  subdivision 4, is amended to read: 
 53.1      Subd. 4.  [REPORTS.] (a) The commissioner shall submit to 
 53.2   the governor, the chairs of the house ways and means and senate 
 53.3   finance committees, and the legislative reference library a 
 53.4   yearly listing of all contracts for professional or technical 
 53.5   services executed.  The report must identify the contractor, 
 53.6   contract amount, duration, and services to be provided.  The 
 53.7   commissioner shall also issue yearly reports summarizing the 
 53.8   contract review activities of the department by fiscal year. 
 53.9      (b) The fiscal year report must be submitted by September 1 
 53.10  of each year and must: 
 53.11     (1) be sorted by agency and by contractor; 
 53.12     (2) show the aggregate value of contracts issued by each 
 53.13  agency and issued to each contractor; 
 53.14     (3) distinguish between contracts that are being issued for 
 53.15  the first time and contracts that are being extended; 
 53.16     (4) state the termination date of each contract; and 
 53.17     (5) identify services by commodity code, including topics 
 53.18  such as contracts for training, contracts for research and 
 53.19  opinions, and contracts for computer systems; and 
 53.20     (6) identify which contracts were awarded without following 
 53.21  the solicitation process in this chapter because it was 
 53.22  determined that there was only a single source for the services. 
 53.23     (c) Within 30 days of final completion of a contract over 
 53.24  $40,000 $50,000 covered by this subdivision, the head of the 
 53.25  agency entering into the contract must submit a one-page report 
 53.26  to the commissioner who must submit a copy to the legislative 
 53.27  reference library.  The report must:  
 53.28     (1) summarize the purpose of the contract, including why it 
 53.29  was necessary to enter into a contract; 
 53.30     (2) state the amount spent on the contract; and 
 53.31     (3) explain why this amount was a cost-effective way to 
 53.32  enable the agency to provide its services or products better or 
 53.33  more efficiently be accompanied by the performance evaluation 
 53.34  prepared in accordance with subdivision 4a; and 
 53.35     (4) if the contract was awarded without following the 
 53.36  solicitation process in this chapter because it was determined 
 54.1   that there was only a single source for the services, explain 
 54.2   why the agency determined there was only a single source for the 
 54.3   services.  
 54.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 54.5   following final enactment. 
 54.6      Sec. 58.  Minnesota Statutes 2002, section 16C.08, is 
 54.7   amended by adding a subdivision to read: 
 54.8      Subd. 4a.  [PERFORMANCE EVALUATION.] Upon completion of a 
 54.9   professional or technical services contract, an agency entering 
 54.10  into the contract must complete a written performance evaluation 
 54.11  of the work done under the contract.  The evaluation must 
 54.12  include an appraisal of the contractor's timeliness, quality, 
 54.13  cost, and overall performance in meeting the terms and 
 54.14  objectives of the contract, and evaluate the extent to which the 
 54.15  contract was a cost-effective way to enable the agency to 
 54.16  provide its services or products better or more efficiently.  
 54.17  Contractors may request copies of evaluations prepared under 
 54.18  this subdivision and may respond in writing.  Contractor 
 54.19  responses must be maintained with the contract file. 
 54.20     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 54.21  following final enactment. 
 54.22     Sec. 59.  Minnesota Statutes 2002, section 16C.09, is 
 54.23  amended to read: 
 54.24     16C.09 [PROCEDURE FOR SERVICE CONTRACTS.] 
 54.25     (a) Before entering into or approving a service contract, 
 54.26  the commissioner must determine, at least, that: 
 54.27     (1) no current state employee is able and available to 
 54.28  perform the services called for by the contract; 
 54.29     (2) the work to be performed under the contract is 
 54.30  necessary to the agency's achievement of its statutory 
 54.31  responsibilities and there is statutory authority to enter into 
 54.32  the contract; 
 54.33     (3) (2) the contract will not establish an employment 
 54.34  relationship between the state or the agency and any persons 
 54.35  performing under the contract; 
 54.36     (4) (3) the contractor and agents are not employees of the 
 55.1   state; 
 55.2      (5) (4) the contracting agency has specified a satisfactory 
 55.3   method of evaluating and using the results of the work to be 
 55.4   performed; and 
 55.5      (6) (5) the combined contract and amendments will not 
 55.6   exceed five years without specific, written approval by the 
 55.7   commissioner according to established policy, procedures, and 
 55.8   standards, or unless otherwise provided for by law.  The term of 
 55.9   the original contract must not exceed two years, unless the 
 55.10  commissioner determines that a longer duration is in the best 
 55.11  interest of the state.  
 55.12     (b) For purposes of paragraph (a), clause (1), employees 
 55.13  are available if qualified and: 
 55.14     (1) are already doing the work in question; or 
 55.15     (2) are on layoff status in classes that can do the work in 
 55.16  question. 
 55.17  An employee is not available if the employee is doing other 
 55.18  work, is retired, or has decided not to do the work in question. 
 55.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 55.20  following final enactment. 
 55.21     Sec. 60.  Minnesota Statutes 2002, section 16C.10, 
 55.22  subdivision 1, is amended to read: 
 55.23     Subdivision 1.  [SINGLE SOURCE.] The solicitation process 
 55.24  described in this chapter is not required when there is clearly 
 55.25  and legitimately only a single source for the goods and services 
 55.26  and the commissioner determines that the price has been fairly 
 55.27  and reasonably established.  Authority under this subdivision 
 55.28  may not be used for a contract for public relations or public 
 55.29  education services.  A contract for these services may be 
 55.30  entered into only after issuing a request for proposals or a 
 55.31  request for bids. 
 55.32     Sec. 61.  Minnesota Statutes 2002, section 16C.10, 
 55.33  subdivision 5, is amended to read: 
 55.34     Subd. 5.  [SPECIFIC PURCHASES.] The solicitation process 
 55.35  described in this chapter is not required for acquisition of the 
 55.36  following: 
 56.1      (1) merchandise for resale purchased under policies 
 56.2   determined by the commissioner; 
 56.3      (2) farm and garden products which, as determined by the 
 56.4   commissioner, may be purchased at the prevailing market price on 
 56.5   the date of sale; 
 56.6      (3) goods and services from the Minnesota correctional 
 56.7   facilities; 
 56.8      (4) goods and services from rehabilitation facilities and 
 56.9   sheltered workshops extended employment providers that are 
 56.10  certified by the commissioner of economic security; 
 56.11     (5) goods and services for use by a community-based 
 56.12  facility operated by the commissioner of human services; 
 56.13     (6) goods purchased at auction or when submitting a sealed 
 56.14  bid at auction provided that before authorizing such an action, 
 56.15  the commissioner consult with the requesting agency to determine 
 56.16  a fair and reasonable value for the goods considering factors 
 56.17  including, but not limited to, costs associated with submitting 
 56.18  a bid, travel, transportation, and storage.  This fair and 
 56.19  reasonable value must represent the limit of the state's bid; 
 56.20  and 
 56.21     (7) utility services where no competition exists or where 
 56.22  rates are fixed by law or ordinance. 
 56.23     Sec. 62.  Minnesota Statutes 2002, section 16C.10, 
 56.24  subdivision 7, is amended to read: 
 56.25     Subd. 7.  [REVERSE AUCTION.] (a) For the purpose of this 
 56.26  subdivision, "reverse auction" means a purchasing process in 
 56.27  which vendors compete to provide goods or services at the lowest 
 56.28  selling price in an open and interactive environment. 
 56.29     (b) The provisions of section 16C.06, subdivisions 2 and 3, 
 56.30  do not apply when the commissioner determines that a reverse 
 56.31  auction is the appropriate purchasing process.  Notwithstanding 
 56.32  any contrary provision of sections 16C.26 to 16C.28, reverse 
 56.33  auctions are competitive bids and bid responses to reverse 
 56.34  auctions may be accepted instead of sealed bids, when the 
 56.35  commissioner determines that a reverse auction is the 
 56.36  appropriate purchasing process. 
 57.1      Sec. 63.  Minnesota Statutes 2002, section 16C.15, is 
 57.2   amended to read: 
 57.3      16C.15 [SHELTERED WORKSHOPS AND SERVICES WORK ACTIVITY 
 57.4   PROGRAMS REHABILITATION FACILITIES AND EXTENDED EMPLOYMENT 
 57.5   PROVIDERS.] 
 57.6      The commissioner, in consultation with the commissioner of 
 57.7   economic security, shall prepare a list containing products and 
 57.8   services of state-certified certified rehabilitation facilities, 
 57.9   sheltered workshops, and work activity programs and extended 
 57.10  employment providers as described in chapter 268A for 
 57.11  acquisition by state agencies and institutions. 
 57.12     Sec. 64.  Minnesota Statutes 2002, section 16C.16, 
 57.13  subdivision 7, is amended to read: 
 57.14     Subd. 7.  [ECONOMICALLY DISADVANTAGED AREAS.] (a) Except as 
 57.15  otherwise provided in paragraph (b), the commissioner may award 
 57.16  up to a six percent preference in the amount bid on state 
 57.17  procurement to small businesses located in an economically 
 57.18  disadvantaged area.  
 57.19     (b) The commissioner may award up to a four percent 
 57.20  preference in the amount bid on state construction to small 
 57.21  businesses located in an economically disadvantaged area.  
 57.22     (c) A business is located in an economically disadvantaged 
 57.23  area if: 
 57.24     (1) the owner resides in or the business is located in a 
 57.25  county in which the median income for married couples is less 
 57.26  than 70 percent of the state median income for married couples; 
 57.27     (2) the owner resides in or the business is located in an 
 57.28  area designated a labor surplus area by the United States 
 57.29  Department of Labor; or 
 57.30     (3) the business is a certified rehabilitation facility or 
 57.31  work activity program extended employment provider as described 
 57.32  in chapter 268A. 
 57.33     (d) The commissioner may designate one or more areas 
 57.34  designated as targeted neighborhoods under section 469.202 or as 
 57.35  enterprise zones under section 469.167 as economically 
 57.36  disadvantaged areas for purposes of this subdivision if the 
 58.1   commissioner determines that this designation would further the 
 58.2   purposes of this section.  If the owner of a small business 
 58.3   resides or is employed in a designated area, the small business 
 58.4   is eligible for any preference provided under this subdivision. 
 58.5      (e) The department of revenue shall gather data necessary 
 58.6   to make the determinations required by paragraph (c), clause 
 58.7   (1), and shall annually certify counties that qualify under 
 58.8   paragraph (c), clause (1).  An area designated a labor surplus 
 58.9   area retains that status for 120 days after certified small 
 58.10  businesses in the area are notified of the termination of the 
 58.11  designation by the United States Department of Labor. 
 58.12     Sec. 65.  Minnesota Statutes 2002, section 16D.08, 
 58.13  subdivision 2, is amended to read: 
 58.14     Subd. 2.  [POWERS.] (a) In addition to the collection 
 58.15  remedies available to private collection agencies in this state, 
 58.16  the commissioner, with legal assistance from the attorney 
 58.17  general, may utilize any statutory authority granted to a 
 58.18  referring agency for purposes of collecting debt owed to that 
 58.19  referring agency.  The commissioner may also delegate to the 
 58.20  enterprise the tax collection remedies in sections 270.06, 
 58.21  clauses (7) and (17), excluding the power to subpoena witnesses; 
 58.22  270.66; 270.69, excluding subdivisions 7 and 13; 270.70, 
 58.23  excluding subdivision 14; 270.7001 to 270.72; and 290.92, 
 58.24  subdivision 23, except that a continuous wage levy under section 
 58.25  290.92, subdivision 23, is only effective for 70 days, unless no 
 58.26  competing wage garnishments, executions, or levies are served 
 58.27  within the 70-day period, in which case a wage levy is 
 58.28  continuous until a competing garnishment, execution, or levy is 
 58.29  served in the second or a succeeding 70-day period, in which 
 58.30  case a continuous wage levy is effective for the remainder of 
 58.31  that period.  A debtor who qualifies for cancellation of 
 58.32  collection costs under section 16D.11, subdivision 3, clause 
 58.33  (1), can apply to the commissioner for reduction or release of a 
 58.34  continuous wage levy, if the debtor establishes that the debtor 
 58.35  needs all or a portion of the wages being levied upon to pay for 
 58.36  essential living expenses, such as food, clothing, shelter, 
 59.1   medical care, or expenses necessary for maintaining employment.  
 59.2   The commissioner's determination not to reduce or release a 
 59.3   continuous wage levy is appealable to district court.  The word 
 59.4   "tax" or "taxes" when used in the tax collection statutes listed 
 59.5   in this subdivision also means debts referred under this chapter.
 59.6      (b) For debts other than state taxes, and child support, or 
 59.7   student loans, before any of the tax collection remedies listed 
 59.8   in this subdivision can be used, except for the remedies in 
 59.9   section 270.06, clauses (7) and (17), if the referring agency 
 59.10  has not already obtained a judgment or filed a lien, the 
 59.11  commissioner must first obtain a judgment against the debtor.  
 59.12  For student loans when the referring agency has not obtained a 
 59.13  judgment or filed a lien, before using the tax collection 
 59.14  remedies listed in this subdivision, except for the remedies in 
 59.15  section 270.06, clauses (7) and (17), the commissioner shall 
 59.16  give the debtor 30 90 days' notice in writing, which may shall 
 59.17  be served in any manner permitted in section 270.68 for service 
 59.18  of a summons and complaint by both first class mail and 
 59.19  certified mail to the debtor's address as provided by the 
 59.20  referring agency.  The notice must advise the debtor of the 
 59.21  debtor's right to request that the commissioner commence a court 
 59.22  action, and that if no such request is made within 30 90 days 
 59.23  after service of the notice, the commissioner may use these tax 
 59.24  collection remedies.  If a timely request is made, the 
 59.25  commissioner shall obtain a judgment before using these tax 
 59.26  collection remedies. 
 59.27     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 59.28  following final enactment for all debts referred, whether 
 59.29  referred prior to or on or after the day following final 
 59.30  enactment. 
 59.31     Sec. 66.  Minnesota Statutes 2002, section 16D.10, is 
 59.32  amended to read: 
 59.33     16D.10 [CASE REVIEWER.] 
 59.34     Subdivision 1.  [DUTIES.] The commissioner shall make a 
 59.35  case reviewer available to debtors.  The reviewer must be 
 59.36  available to answer a debtor's questions concerning the 
 60.1   collection process and to review the collection activity taken.  
 60.2   If the reviewer reasonably believes that the particular action 
 60.3   being taken is unreasonable or unfair, the reviewer may make 
 60.4   recommendations to the commissioner in regard to the collection 
 60.5   action.  
 60.6      Subd. 2.  [AUTHORITY TO ISSUE DEBTOR ASSISTANCE ORDER.] On 
 60.7   application filed by a debtor with the case reviewer, in the 
 60.8   form, manner, and in the time prescribed by the commissioner, 
 60.9   and after thorough investigation, the case reviewer may issue a 
 60.10  debtor assistance order if, in the determination of the case 
 60.11  reviewer, the manner in which the state debt collection laws are 
 60.12  being administered is creating or will create an unjust and 
 60.13  inequitable result for the debtor.  Debtor assistance orders 
 60.14  shall be governed by the provisions relating to taxpayer 
 60.15  assistance orders under section 270.273. 
 60.16     Subd. 3.  [TRANSFER OF DUTIES TO TAXPAYER RIGHTS ADVOCATE.] 
 60.17  All duties and authority of the case reviewer under subdivisions 
 60.18  1 and 2 are transferred to the taxpayer rights advocate. 
 60.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 60.20  following final enactment. 
 60.21     Sec. 67.  Minnesota Statutes 2002, section 16E.01, 
 60.22  subdivision 3, is amended to read: 
 60.23     Subd. 3.  [DUTIES.] (a) The office shall: 
 60.24     (1) coordinate the efficient and effective use of available 
 60.25  federal, state, local, and private resources to develop 
 60.26  statewide information and communications technology and its 
 60.27  infrastructure; 
 60.28     (2) review state agency and intergovernmental information 
 60.29  and communications systems development efforts involving state 
 60.30  or intergovernmental funding, including federal funding, provide 
 60.31  information to the legislature regarding projects reviewed, and 
 60.32  recommend projects for inclusion in the governor's budget under 
 60.33  section 16A.11; 
 60.34     (3) encourage cooperation and collaboration among state and 
 60.35  local governments in developing intergovernmental communication 
 60.36  and information systems, and define the structure and 
 61.1   responsibilities of the information policy council; 
 61.2      (4) cooperate and collaborate with the legislative and 
 61.3   judicial branches in the development of information and 
 61.4   communications systems in those branches; 
 61.5      (5) continue the development of North Star, the state's 
 61.6   official comprehensive online service and information 
 61.7   initiative; 
 61.8      (6) promote and collaborate with the state's agencies in 
 61.9   the state's transition to an effectively competitive 
 61.10  telecommunications market; 
 61.11     (7) collaborate with entities carrying out education and 
 61.12  lifelong learning initiatives to assist Minnesotans in 
 61.13  developing technical literacy and obtaining access to ongoing 
 61.14  learning resources; 
 61.15     (8) promote and coordinate public information access and 
 61.16  network initiatives, consistent with chapter 13, to connect 
 61.17  Minnesota's citizens and communities to each other, to their 
 61.18  governments, and to the world; 
 61.19     (9) promote and coordinate electronic commerce initiatives 
 61.20  to ensure that Minnesota businesses and citizens can 
 61.21  successfully compete in the global economy; 
 61.22     (10) promote and coordinate the regular and periodic 
 61.23  reinvestment in the core information and communications 
 61.24  technology infrastructure so that state and local government 
 61.25  agencies can effectively and efficiently serve their customers; 
 61.26     (11) facilitate the cooperative development of standards 
 61.27  for information systems, electronic data practices and privacy, 
 61.28  and electronic commerce among international, national, state, 
 61.29  and local public and private organizations; and 
 61.30     (12) work with others to avoid unnecessary duplication of 
 61.31  existing services provided by other public and private 
 61.32  organizations while building on the existing governmental, 
 61.33  educational, business, health care, and economic development 
 61.34  infrastructures. 
 61.35     (b) The commissioner of administration in consultation with 
 61.36  the commissioner of finance may determine that it is 
 62.1   cost-effective for agencies to develop and use shared 
 62.2   information and communications technology systems for the 
 62.3   delivery of electronic government services.  This determination 
 62.4   may be made if an agency proposes a new system that duplicates 
 62.5   an existing system, a system in development, or a system being 
 62.6   proposed by another agency.  The commissioner of administration 
 62.7   shall establish reimbursement rates in cooperation with the 
 62.8   commissioner of finance to be billed to agencies and other 
 62.9   governmental entities sufficient to cover the actual 
 62.10  development, operating, maintenance, and administrative costs of 
 62.11  the shared systems.  The methodology for billing may include 
 62.12  depositing such funds in the technology enterprise fund, the use 
 62.13  of interagency agreements, or other means as allowed by law. 
 62.14     Sec. 68.  Minnesota Statutes 2002, section 16E.07, 
 62.15  subdivision 9, is amended to read: 
 62.16     Subd. 9.  [AGGREGATION OF SERVICE DEMAND.] The office shall 
 62.17  identify opportunities to aggregate demand for technical 
 62.18  services required by government units for online activities and 
 62.19  may contract with governmental or nongovernmental entities to 
 62.20  provide services.  These contracts are not subject to the 
 62.21  requirements of chapters 16B and 16C, except sections 16C.04, 
 62.22  16C.07, 16C.08, and 16C.09. 
 62.23     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 62.24  following final enactment. 
 62.25     Sec. 69.  Minnesota Statutes 2002, section 43A.047, is 
 62.26  amended to read: 
 62.27     43A.047 [CONTRACTED SERVICES.] 
 62.28     (a) Executive agencies, including the Minnesota state 
 62.29  colleges and universities system, must demonstrate that they 
 62.30  cannot use available staff before hiring outside consultants or 
 62.31  services.  If use of consultants is necessary, agencies are 
 62.32  encouraged to negotiate contracts that will involve permanent 
 62.33  staff, so as to upgrade and maximize training of state employees.
 62.34     (b) If agencies reduce operating budgets, agencies must 
 62.35  give priority to reducing spending on professional and technical 
 62.36  service contracts before laying off permanent employees. 
 63.1      Sec. 70.  Minnesota Statutes 2002, section 43A.24, 
 63.2   subdivision 1, is amended to read: 
 63.3      Subdivision 1.  [GENERAL.] (a) Employees, including persons 
 63.4   on layoff from a civil service position, and employees who are 
 63.5   employed less than full time, shall be eligible for state paid 
 63.6   life insurance and hospital, medical and dental benefits as 
 63.7   provided in collective bargaining agreements or plans 
 63.8   established pursuant to section 43A.18.  
 63.9      (b) A collective bargaining agreement or compensation plan 
 63.10  may provide state-paid benefits only to one or more of the 
 63.11  following: 
 63.12     (1) an employee; 
 63.13     (2) the employee's spouse; 
 63.14     (3) the employee's dependent children; or 
 63.15     (4) the employee's dependent grandchildren. 
 63.16     (c) A collective bargaining agreement or compensation plan 
 63.17  may define a dependent child to include a biological child, a 
 63.18  child legally adopted or placed for adoption with the employee, 
 63.19  a foster child, or a stepchild.  A collective bargaining 
 63.20  agreement or compensation plan need not cover all people who are 
 63.21  eligible for coverage and may provide conditions and limitations 
 63.22  on coverage. 
 63.23     (d) If a collective bargaining agreement or compensation 
 63.24  plan in this section provides for sick leave with pay, an 
 63.25  employee must be granted sick leave with pay, to the extent of 
 63.26  the employee's accumulation of sick leave, for absences: 
 63.27     (1) due to illness or disability of a regular member of the 
 63.28  employee's immediate household for a reasonable period as the 
 63.29  employee's attendance is necessary; and 
 63.30     (2) due to the death of a regular member of the employee's 
 63.31  immediate household, for a reasonable period. 
 63.32     (e) The benefit provided under paragraph (d) is not a 
 63.33  replacement for any other sick leave benefit provided for in the 
 63.34  collective bargaining agreement or compensation plan as ratified 
 63.35  in this section. 
 63.36     Sec. 71.  [43A.311] [DRUG PURCHASING PROGRAM.] 
 64.1      The commissioner of employee relations, in conjunction with 
 64.2   other state agencies, shall evaluate whether participation in a 
 64.3   multistate or multiagency drug purchasing program can reduce 
 64.4   costs or improve the operations of the drug benefit programs 
 64.5   administered by the department and other state agencies.  The 
 64.6   commissioner and other state agencies may enter into a contract 
 64.7   with a vendor or other states for purposes of participating in a 
 64.8   multistate or multiagency drug purchasing program. 
 64.9      Sec. 72.  Minnesota Statutes 2002, section 69.772, 
 64.10  subdivision 2, is amended to read: 
 64.11     Subd. 2.  [DETERMINATION OF ACCRUED LIABILITY.] Each 
 64.12  firefighters' relief association which pays a service pension 
 64.13  when a retiring firefighter meets the minimum requirements for 
 64.14  entitlement to a service pension specified in section 424A.02 
 64.15  and which in its articles of incorporation or bylaws requires 
 64.16  service credit for a period of service of at least 20 years of 
 64.17  active service for a totally nonforfeitable service pension 
 64.18  shall determine the accrued liability of the special fund of the 
 64.19  firefighters' relief association relative to each active or 
 64.20  deferred member of the relief association, calculated 
 64.21  individually using the following table: 
 64.22           Cumulative                       Accrued
 64.23              Year                         Liability
 64.24          .............                  .............
 64.25                1                            $  60 
 64.26                2                              124 
 64.27                3                              190 
 64.28                4                              260 
 64.29                5                              334 
 64.30                6                              410 
 64.31                7                              492 
 64.32                8                              576 
 64.33                9                              666 
 64.34               10                              760 
 64.35               11                              858 
 64.36               12                              962 
 65.1                13                             1070 
 65.2                14                             1184 
 65.3                15                             1304 
 65.4                16                             1428 
 65.5                17                             1560 
 65.6                18                             1698 
 65.7                19                             1844 
 65.8                20                             2000 
 65.9                21 and thereafter               100 additional
 65.10                                                   per year
 65.11     As set forth in the table the accrued liability for each 
 65.12  member or deferred member of the relief association corresponds 
 65.13  to the cumulative years of active service to the credit of the 
 65.14  member.  The accrued liability of the special fund for each 
 65.15  active or deferred member is determined by multiplying the 
 65.16  accrued liability from the chart by the ratio of the lump sum 
 65.17  service pension amount currently provided for in the bylaws of 
 65.18  the relief association to a service pension of $100 per year of 
 65.19  service.  If a member has fractional service as of December 31, 
 65.20  the figure for service credit to be used for the determination 
 65.21  of accrued liability pursuant to this section shall be rounded 
 65.22  to the nearest full year of service credit.  The total accrued 
 65.23  liability of the special fund as of December 31 shall be the sum 
 65.24  of the accrued liability attributable to each active or deferred 
 65.25  member of the relief association.  
 65.26     To the extent that the state auditor considers it to be 
 65.27  necessary or practical, the state auditor may specify and issue 
 65.28  procedures, forms, or mathematical tables for use in performing 
 65.29  the calculations of the accrued liability for deferred members 
 65.30  pursuant to this subdivision. 
 65.31     Sec. 73.  Minnesota Statutes 2002, section 115A.929, is 
 65.32  amended to read: 
 65.33     115A.929 [FEES; ACCOUNTING.] 
 65.34     Each political subdivision that provides for solid waste 
 65.35  management shall account for all revenue collected from waste 
 65.36  management fees, together with interest earned on revenue from 
 66.1   the fees, separately from other revenue collected by the 
 66.2   political subdivision and shall report revenue collected from 
 66.3   the fees and use of the revenue separately from other revenue 
 66.4   and use of revenue in any required financial report or audit.  
 66.5   Each political subdivision must file with the director, on or 
 66.6   before June 30 annually, the separate report of all revenue 
 66.7   collected from waste management fees, together with interest on 
 66.8   revenue from the fees, for the previous year.  For the purposes 
 66.9   of this section, "waste management fees" means: 
 66.10     (1) all fees, charges, and surcharges collected under 
 66.11  sections 115A.919, 115A.921, and 115A.923; 
 66.12     (2) all tipping fees collected at waste management 
 66.13  facilities owned or operated by the political subdivision; 
 66.14     (3) all charges imposed by the political subdivision for 
 66.15  waste collection and management services; and 
 66.16     (4) any other fees, charges, or surcharges imposed on waste 
 66.17  or for the purpose of waste management, whether collected 
 66.18  directly from generators or indirectly through property taxes or 
 66.19  as part of utility or other charges for services provided by the 
 66.20  political subdivision. 
 66.21     Sec. 74.  Minnesota Statutes 2002, section 116J.8771, is 
 66.22  amended to read: 
 66.23     116J.8771 [WAIVER.] 
 66.24     The capital access program is exempt from section 16C.05, 
 66.25  subdivision 2, paragraph (a), clause (5) (b). 
 66.26     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 66.27  following final enactment. 
 66.28     Sec. 75.  Minnesota Statutes 2002, section 179A.03, 
 66.29  subdivision 7, is amended to read: 
 66.30     Subd. 7.  [ESSENTIAL EMPLOYEE.] "Essential employee" means 
 66.31  firefighters, peace officers subject to licensure under sections 
 66.32  626.84 to 626.863, 911 system and police and fire department 
 66.33  public safety dispatchers, guards at correctional facilities, 
 66.34  confidential employees, supervisory employees, assistant county 
 66.35  attorneys, assistant city attorneys, principals, and assistant 
 66.36  principals.  However, for state employees, "essential employee" 
 67.1   means all employees in law enforcement, health care 
 67.2   professionals, health care nonprofessionals, correctional 
 67.3   guards, professional engineering, and supervisory collective 
 67.4   bargaining units, irrespective of severance, and no other 
 67.5   employees.  For University of Minnesota employees, "essential 
 67.6   employee" means all employees in law enforcement, nursing 
 67.7   professional and supervisory units, irrespective of severance, 
 67.8   and no other employees.  "Firefighters" means salaried employees 
 67.9   of a fire department whose duties include, directly or 
 67.10  indirectly, controlling, extinguishing, preventing, detecting, 
 67.11  or investigating fires.  Employees for whom the state court 
 67.12  administrator is the negotiating employer are not essential 
 67.13  employees. 
 67.14     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2003. 
 67.15     Sec. 76.  Minnesota Statutes 2002, section 192.501, 
 67.16  subdivision 2, is amended to read: 
 67.17     Subd. 2.  [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 
 67.18  PROGRAM.] (a) The adjutant general shall establish a program to 
 67.19  provide tuition and textbook reimbursement grants to eligible 
 67.20  members of the Minnesota national guard within the limitations 
 67.21  of this subdivision. 
 67.22     (b) Eligibility is limited to a member of the national 
 67.23  guard who: 
 67.24     (1) is serving satisfactorily as defined by the adjutant 
 67.25  general; 
 67.26     (2) is attending a post-secondary educational institution, 
 67.27  as defined by section 136A.15, subdivision 6, including a 
 67.28  vocational or technical school operated or regulated by this 
 67.29  state or another state or province; and 
 67.30     (3) provides proof of satisfactory completion of 
 67.31  coursework, as defined by the adjutant general. 
 67.32     In addition, if a member of the Minnesota national guard is 
 67.33  killed in the line of state active service or federally funded 
 67.34  state active service, as defined in section 190.05, subdivisions 
 67.35  5a and 5b, the member's surviving spouse, and any surviving 
 67.36  dependent who has not yet reached 24 years of age, is eligible 
 68.1   for a tuition and textbook reimbursement grant. 
 68.2      The adjutant general may, within the limitations of this 
 68.3   paragraph and other applicable laws, determine additional 
 68.4   eligibility criteria for the grant, and must specify the 
 68.5   criteria in department regulations and publish changes as 
 68.6   necessary. 
 68.7      (c) The amount of a tuition and textbook reimbursement 
 68.8   grant must be specified on a schedule as determined and 
 68.9   published in department regulations by the adjutant general, but 
 68.10  is limited to a maximum of an amount equal to the greater of: 
 68.11     (1) 80 percent of the cost of tuition for lower division 
 68.12  programs in the college of liberal arts at the twin cities 
 68.13  campus of the University of Minnesota in the most recent 
 68.14  academic year; or 
 68.15     (2) 80 percent of the cost of tuition for the program in 
 68.16  which the person is enrolled at that Minnesota public 
 68.17  institution, or if that public institution is outside the state 
 68.18  of Minnesota, for the cost of a comparable program at the 
 68.19  University of Minnesota, except that in the case of a survivor 
 68.20  as defined in paragraph (b), the amount of the tuition and 
 68.21  textbook reimbursement grant for coursework satisfactorily 
 68.22  completed by the person is limited to 100 percent of the cost of 
 68.23  tuition for post-secondary courses at a Minnesota public 
 68.24  educational institution. 
 68.25     Paragraph (b) notwithstanding, a person is no longer 
 68.26  eligible for a grant under this subdivision once the person has 
 68.27  received grants under this subdivision for the equivalent of 208 
 68.28  quarter credits or 144 semester credits of coursework. 
 68.29     (d) Tuition and textbook reimbursement grants received 
 68.30  under this subdivision may not be considered by the Minnesota 
 68.31  higher education services office or by any other state board, 
 68.32  commission, or entity in determining a person's eligibility for 
 68.33  a scholarship or grant-in-aid under sections 136A.095 to 
 68.34  136A.1311. 
 68.35     (e) If a member fails to complete a term of enlistment 
 68.36  during which a tuition and textbook reimbursement grant was 
 69.1   paid, the adjutant general may seek to recoup a prorated amount 
 69.2   as determined by the adjutant general. 
 69.3      (f) The adjutant general shall maintain records and report 
 69.4   any findings to the legislature by March 1, 2003, on the impact 
 69.5   of increasing the reimbursement amounts under paragraph (c) 
 69.6   during the period July 1, 2001, through December 31, 2002. 
 69.7      (g) This paragraph, paragraph (f), and the amendments made 
 69.8   by Laws 2001, First Special Session chapter 10 to paragraph (c) 
 69.9   expire June 30, 2003. 
 69.10     Sec. 77.  Minnesota Statutes 2002, section 197.608, is 
 69.11  amended to read: 
 69.12     197.608 [VETERANS SERVICE OFFICE GRANT PROGRAM.] 
 69.13     Subdivision 1.  [GRANT PROGRAM.] A veterans service office 
 69.14  grant program is established to be administered by the 
 69.15  commissioner of veterans affairs consisting of grants to 
 69.16  counties to enable them to enhance the effectiveness of their 
 69.17  veterans service offices. 
 69.18     Subd. 2.  [RULE DEVELOPMENT.] The commissioner of veterans 
 69.19  affairs shall consult with the Minnesota association of county 
 69.20  veterans service officers in formulating rules to implement the 
 69.21  grant program.  
 69.22     Subd. 2a.  [GRANT CYCLE.] Counties may become eligible to 
 69.23  receive grants on a three-year rotating basis according to a 
 69.24  schedule to be developed and announced in advance by the 
 69.25  commissioner.  The schedule must list no more than one-third of 
 69.26  the counties in each year of the three-year cycle.  A county may 
 69.27  be considered for a grant only in the year of its listing in the 
 69.28  schedule. 
 69.29     Subd. 3.  [ELIGIBILITY.] (a) To be eligible for a grant 
 69.30  under this program, a county must:  
 69.31     (1) employ a county veterans service officer as authorized 
 69.32  by sections 197.60 and 197.606, who is certified to serve in 
 69.33  this position by the commissioner of veterans affairs;. 
 69.34     (2) submit a written plan for the proposed expenditures to 
 69.35  enhance the functioning of the county veterans service office in 
 69.36  accordance with the program rules; and 
 70.1      (3) apply for the grant according to procedures to be 
 70.2   established for this program by the commissioner and receive 
 70.3   written approval from the commissioner for the grant in advance 
 70.4   of making the proposed expenditures. 
 70.5      (b) A county that employs a newly hired county veterans 
 70.6   service officer who is serving an initial probationary period 
 70.7   and who has not been certified by the commissioner is eligible 
 70.8   to receive a grant under subdivision 2a. 
 70.9      (c) Except for the situation described in paragraph (b), a 
 70.10  county whose veterans service officer does not receive 
 70.11  certification during any year of the three-year cycle is not 
 70.12  eligible to receive a grant during the remainder of that cycle 
 70.13  or the next three-year cycle. 
 70.14     Subd. 4.  [GRANT APPLICATION PROCESS.] (a) A grant 
 70.15  application must be submitted to the department of veterans 
 70.16  affairs according to procedures to be established by the 
 70.17  commissioner.  The grant application must include a specific 
 70.18  description of the plan for enhancing the operation of the 
 70.19  county veterans service office. The commissioner shall determine 
 70.20  the process for awarding grants.  A grant may be used only for 
 70.21  the purpose of enhancing the operations of the county veterans 
 70.22  service office. 
 70.23     (b) The commissioner shall provide a list of qualifying 
 70.24  uses for grant expenditures as developed in subdivision 5 and 
 70.25  shall approve a grant application only if it meets the criteria 
 70.26  for eligibility as established and announced by the commissioner 
 70.27  for a qualifying use and if there are sufficient funds remaining 
 70.28  in the grant program to cover the full amount of the grant.  The 
 70.29  commissioner may request modification of a plan.  If the 
 70.30  commissioner rejects a grant application, written reasons for 
 70.31  the rejection must be provided to the applicant county and the 
 70.32  county may modify the application and resubmit it. 
 70.33     Subd. 5.  [QUALIFYING USES.] The commissioner of veterans 
 70.34  affairs shall determine whether the plan specified in the grant 
 70.35  application will enable the applicant county to enhance the 
 70.36  effectiveness of its county veterans office. 
 71.1      Notwithstanding subdivision 3, clause (1), a county may 
 71.2   apply for and use a grant for the training and education 
 71.3   required by the commissioner for a newly employed county 
 71.4   veterans service officer's certificate, or for the continuing 
 71.5   education of other staff consult with the Minnesota association 
 71.6   of county veterans service officers in developing a list of 
 71.7   qualifying uses for grants awarded under this program. 
 71.8      Subd. 6.  [GRANT AMOUNT.] The amount of each grant must be 
 71.9   determined by the commissioner of veterans affairs, and may not 
 71.10  exceed the lesser of: 
 71.11     (1) the amount specified in the grant application to be 
 71.12  expended on the plan for enhancing the effectiveness of the 
 71.13  county veterans service office; or 
 71.14     (2) the county's share of the total funds available under 
 71.15  the program, determined in the following manner: 
 71.16     (i) $1,400, if the county's veteran population is less than 
 71.17  1,000, the county's grant share shall be $2,000; 
 71.18     (ii) $2,800, if the county's veteran population is 1,000 or 
 71.19  more but less than 3,000, the county's grant share shall be 
 71.20  $4,000; 
 71.21     (iii) $4,200, if the county's veteran population is 3,000 
 71.22  or more but less then 10,000, the county's grant share shall be 
 71.23  $6,000; or 
 71.24     (iv) $5,600, if the county's veteran population is 10,000 
 71.25  or more, the county's grant share shall be $8,000. 
 71.26     In any year, only one-half of the counties in each of the 
 71.27  four veteran population categories (i) to (iv) may be awarded 
 71.28  grants.  Grants shall be awarded on a first-come first-served 
 71.29  basis to counties submitting applications which meet the 
 71.30  commissioner's criteria as established in the rules.  Any county 
 71.31  not receiving a grant in any given year shall receive priority 
 71.32  consideration for a grant the following year.  
 71.33     In any year, after a period of time to be determined by the 
 71.34  commissioner, any amounts remaining from undistributed county 
 71.35  grant shares may be reallocated to the other counties which have 
 71.36  submitted qualifying application. 
 72.1      The veteran population of each county shall be determined 
 72.2   by the figure supplied by the United States Department of 
 72.3   Veterans Affairs, as adopted by the commissioner. 
 72.4      Subd. 7.  [RECAPTURE.] If a county fails to use the grant 
 72.5   for the qualified use approved by the commissioner, the 
 72.6   commissioner shall seek recovery of the grant from the county 
 72.7   and the county must repay the grant amount. 
 72.8      Sec. 78.  Minnesota Statutes 2002, section 240.03, is 
 72.9   amended to read: 
 72.10     240.03 [COMMISSION POWERS AND DUTIES.] 
 72.11     The commission has the following powers and duties:  
 72.12     (1) to regulate horse racing in Minnesota to ensure that it 
 72.13  is conducted in the public interest; 
 72.14     (2) to issue licenses as provided in this chapter; 
 72.15     (3) to enforce all laws and rules governing horse racing; 
 72.16     (4) to collect and distribute all taxes provided for in 
 72.17  this chapter; 
 72.18     (5) to conduct necessary investigations and inquiries and 
 72.19  compel the submission of information, documents, and records it 
 72.20  deems necessary to carry out its duties; 
 72.21     (6) to supervise the conduct of pari-mutuel betting on 
 72.22  horse racing; 
 72.23     (7) to employ and supervise personnel under this chapter; 
 72.24     (8) to determine the number of racing days to be held in 
 72.25  the state and at each licensed racetrack; and 
 72.26     (9) to take all necessary steps to ensure the integrity of 
 72.27  racing in Minnesota.; and 
 72.28     (10) to impose fees on the racing and card playing 
 72.29  industries sufficient to recover the operating costs of the 
 72.30  commission with the approval of the legislature according to 
 72.31  section 16A.1283.  Notwithstanding section 16A.1283, when the 
 72.32  legislature is not in session, the commissioner of finance may 
 72.33  grant interim approval for any new fees or adjustments to 
 72.34  existing fees that are not statutorily specified, until such 
 72.35  time as the legislature reconvenes and acts upon the new fees or 
 72.36  adjustments.  As part of its biennial budget request, the 
 73.1   commission must propose changes to its fees that will be 
 73.2   sufficient to recover the operating costs of the commission.  
 73.3      Sec. 79.  Minnesota Statutes 2002, section 240.10, is 
 73.4   amended to read: 
 73.5      240.10 [LICENSE FEES.] 
 73.6      The fee for a class A license is $10,000 per year.  The fee 
 73.7   for a class B license is $100 for each assigned racing day on 
 73.8   which racing is actually conducted, and $50 for each day on 
 73.9   which simulcasting is authorized and actually takes place, plus 
 73.10  $10,000 per year if the class B license includes authorization 
 73.11  to operate a card club.  The fee for a class D license is $50 
 73.12  for each assigned racing day on which racing is actually 
 73.13  conducted.  Fees imposed on class B and class D licenses must be 
 73.14  paid to the commission at a time and in a manner as provided by 
 73.15  rule of the commission.  
 73.16     The commission shall by rule establish an annual license 
 73.17  fee for each occupation it licenses under section 240.08 but no 
 73.18  annual fee for a class C license may exceed $100.  
 73.19     License fee payments received must be paid by the 
 73.20  commission to the state treasurer for deposit in the general 
 73.21  fund. 
 73.22     Sec. 80.  Minnesota Statutes 2002, section 240.15, 
 73.23  subdivision 6, is amended to read: 
 73.24     Subd. 6.  [DISPOSITION OF PROCEEDS; ACCOUNT.] The 
 73.25  commission shall distribute all money received under this 
 73.26  section, and all money received from license fees and fines it 
 73.27  collects, as follows: according to this subdivision.  All money 
 73.28  designated for deposit in the Minnesota breeders fund must be 
 73.29  paid into that fund for distribution under section 240.18 except 
 73.30  that all money generated by full racing card simulcasts must be 
 73.31  distributed as provided in section 240.18, subdivisions 2, 
 73.32  paragraph (d), clauses (1), (2), and (3); and 3.  Revenue from 
 73.33  an admissions tax imposed under subdivision 1 must be paid to 
 73.34  the local unit of government at whose request it was imposed, at 
 73.35  times and in a manner the commission determines.  All other 
 73.36  revenues Taxes received under this section by the commission, 
 74.1   and all license fees, fines, and other revenue it receives, and 
 74.2   fines collected under section 240.22 must be paid to the state 
 74.3   treasurer for deposit in the general fund.  All revenues from 
 74.4   licenses and other fees imposed by the commission must be 
 74.5   deposited in the state treasury and credited to a racing and 
 74.6   card playing regulation account in the special revenue fund.  
 74.7   Receipts in this account are available for the operations of the 
 74.8   commission up to the amount authorized in biennial 
 74.9   appropriations from the legislature. 
 74.10     Sec. 81.  Minnesota Statutes 2002, section 240.155, 
 74.11  subdivision 1, is amended to read: 
 74.12     Subdivision 1.  [REIMBURSEMENT ACCOUNT CREDIT.] Money 
 74.13  received by the commission as reimbursement for the costs of 
 74.14  services provided by assistant veterinarians, stewards, and 
 74.15  medical testing of horses must be deposited in the state 
 74.16  treasury and credited to a racing reimbursement account, except 
 74.17  as provided under subdivision 2.  Receipts are appropriated to 
 74.18  the commission to pay the costs of providing the services. 
 74.19     Sec. 82.  Minnesota Statutes 2002, section 240A.03, 
 74.20  subdivision 10, is amended to read: 
 74.21     Subd. 10.  [USE AGREEMENTS AND FEES.] The commission may 
 74.22  lease, license, or enter into agreements and may fix, alter, 
 74.23  charge, and collect rentals, fees, and charges to persons for 
 74.24  the use, occupation, and availability of part or all of any 
 74.25  premises, property, or facilities under its ownership, 
 74.26  operation, or control.  Fees charged by the commission are not 
 74.27  subject to section 16A.1285.  The commission may also impose 
 74.28  other fees it deems appropriate with the approval of the 
 74.29  legislature according to section 16A.1283.  Notwithstanding 
 74.30  section 16A.1283, when the legislature is not in session, the 
 74.31  commissioner of finance may grant interim approval of the fees, 
 74.32  until such time as the legislature reconvenes and acts upon the 
 74.33  fees.  Revenues generated by the commission under this section 
 74.34  must be sufficient to offset the biennial appropriations it 
 74.35  receives from the legislature and must be deposited to the state 
 74.36  treasury and credited to the general fund.  A use agreement may 
 75.1   provide that the other contracting party has exclusive use of 
 75.2   the premises at the times agreed upon.  As part of its biennial 
 75.3   budget request, the commission must propose changes to its fees 
 75.4   that will be sufficient to recover the direct appropriation to 
 75.5   the commission. 
 75.6      Sec. 83.  Minnesota Statutes 2002, section 240A.03, 
 75.7   subdivision 15, is amended to read: 
 75.8      Subd. 15.  [ADVERTISING.] The commission may accept paid 
 75.9   advertising in its publications.  Funds received from 
 75.10  advertising are annually appropriated to the commission for its 
 75.11  publications.  The commission must annually report the amount of 
 75.12  funds received under this subdivision to the chair of the house 
 75.13  of representatives ways and means and senate finance 
 75.14  committees must be deposited to the state treasury and credited 
 75.15  to the general fund. 
 75.16     Sec. 84.  Minnesota Statutes 2002, section 240A.04, is 
 75.17  amended to read: 
 75.18     240A.04 [PROMOTION AND DEVELOPMENT OF AMATEUR SPORTS.] 
 75.19     In addition to the powers and duties granted under section 
 75.20  240A.03, the commission shall may:  
 75.21     (1) promote the development of olympic training centers; 
 75.22     (2) promote physical fitness by promoting participation in 
 75.23  sports; 
 75.24     (3) develop, foster, and coordinate physical fitness 
 75.25  services and programs; 
 75.26     (4) sponsor amateur sport workshops, clinics, and 
 75.27  conferences; 
 75.28     (5) provide recognition for outstanding developments, 
 75.29  achievements, and contributions to amateur sports; 
 75.30     (6) stimulate and promote amateur sport research; 
 75.31     (7) collect, disseminate, and communicate amateur sport 
 75.32  information; 
 75.33     (8) promote amateur sport and physical fitness programs in 
 75.34  schools and local communities; 
 75.35     (9) develop programs to promote personal health and 
 75.36  physical fitness by participation in amateur sports in 
 76.1   cooperation with medical, dental, sports medicine, and similar 
 76.2   professional societies; 
 76.3      (10) promote the development of recreational amateur sport 
 76.4   opportunities and activities in the state, including the means 
 76.5   of facilitating acquisition, financing, construction, and 
 76.6   rehabilitation of sports facilities for the holding of amateur 
 76.7   sporting events; 
 76.8      (11) promote national and international amateur sport 
 76.9   competitions and events; 
 76.10     (12) sanction or sponsor amateur sport competition; 
 76.11     (13) take membership in regional or national amateur sports 
 76.12  associations or organizations; and 
 76.13     (14) promote the mainstreaming and normalization of people 
 76.14  with physical disabilities and visual and hearing impairments in 
 76.15  amateur sports. 
 76.16     Sec. 85.  Minnesota Statutes 2002, section 240A.06, 
 76.17  subdivision 1, is amended to read: 
 76.18     Subdivision 1.  [SPONSORSHIP REQUIRED.] The commission 
 76.19  shall may sponsor and sanction a series of statewide amateur 
 76.20  athletic games patterned after the winter and summer Olympic 
 76.21  Games, with variations as required by facilities, equipment, and 
 76.22  expertise, and as necessary to include people with physical 
 76.23  disabilities and visual and hearing impairments.  The games may 
 76.24  be held annually beginning in 1989, if money and facilities are 
 76.25  available, unless the time of the games would conflict with 
 76.26  other sporting events as the commission determines.  
 76.27     Sec. 86.  Minnesota Statutes 2002, section 256B.435, 
 76.28  subdivision 2a, is amended to read: 
 76.29     Subd. 2a.  [DURATION AND TERMINATION OF CONTRACTS.] (a) All 
 76.30  contracts entered into under this section are for a term of one 
 76.31  year.  Either party may terminate this contract at any time 
 76.32  without cause by providing 90 calendar days' advance written 
 76.33  notice to the other party.  Notwithstanding section 16C.05, 
 76.34  subdivisions 2, paragraph (a) (b), and 5, if neither party 
 76.35  provides written notice of termination, the contract shall be 
 76.36  renegotiated for additional one-year terms or the terms of the 
 77.1   existing contract will be extended for one year.  The provisions 
 77.2   of the contract shall be renegotiated annually by the parties 
 77.3   prior to the expiration date of the contract.  The parties may 
 77.4   voluntarily renegotiate the terms of the contract at any time by 
 77.5   mutual agreement. 
 77.6      (b) If a nursing facility fails to comply with the terms of 
 77.7   a contract, the commissioner shall provide reasonable notice 
 77.8   regarding the breach of contract and a reasonable opportunity 
 77.9   for the facility to come into compliance.  If the facility fails 
 77.10  to come into compliance or to remain in compliance, the 
 77.11  commissioner may terminate the contract.  If a contract is 
 77.12  terminated, provisions of section 256B.48, subdivision 1a, shall 
 77.13  apply. 
 77.14     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 77.15  following final enactment. 
 77.16     Sec. 87.  Minnesota Statutes 2002, section 268.186, is 
 77.17  amended to read: 
 77.18     268.186 [RECORDS.] 
 77.19     (a) Each employer shall keep true and accurate records for 
 77.20  the periods of time and containing the information the 
 77.21  commissioner may require.  For the purpose of administering this 
 77.22  chapter, the commissioner has the power to examine, or cause to 
 77.23  be supplied or copied, any books, correspondence, papers, 
 77.24  records, or memoranda that are relevant, whether the books, 
 77.25  correspondence, papers, records, or memoranda are the property 
 77.26  of or in the possession of the employer or any other person at 
 77.27  any reasonable time and as often as may be necessary. 
 77.28     (b) The commissioner may make summaries, compilations, 
 77.29  photographs, duplications, or reproductions of any records, or 
 77.30  reports that the commissioner considers advisable for the 
 77.31  preservation of the information contained therein.  Any 
 77.32  summaries, compilations, photographs, duplications, or 
 77.33  reproductions shall be admissible in any proceeding under this 
 77.34  chapter.  Regardless of any restrictions contained in section 
 77.35  16B.50, The commissioner may duplicate records, reports, 
 77.36  summaries, compilations, instructions, determinations, or any 
 78.1   other written or recorded matter pertaining to the 
 78.2   administration of this chapter. 
 78.3      (c) Regardless of any law to the contrary, the commissioner 
 78.4   may provide for the destruction of any records, reports, or 
 78.5   reproductions thereof, or other papers, that are more than two 
 78.6   years old, and that are no longer necessary for determining 
 78.7   employer liability or an applicant's unemployment benefit rights 
 78.8   or for the administration of this chapter, including any 
 78.9   required audit.  The commissioner may provide for the 
 78.10  destruction or disposition of any record, report, or other paper 
 78.11  that has been photographed, duplicated, or reproduced.  
 78.12     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 78.13  following final enactment. 
 78.14     Sec. 88.  Minnesota Statutes 2002, section 270.052, is 
 78.15  amended to read: 
 78.16     270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 
 78.17     Pursuant to section 270B.12, the commissioner may enter 
 78.18  into an agreement with the Internal Revenue Service to identify 
 78.19  taxpayers who have refunds due from the department of revenue 
 78.20  and liabilities owing to the Internal Revenue Service.  In 
 78.21  accordance with the procedures established in the agreement, the 
 78.22  Internal Revenue Service may levy against the refunds to be paid 
 78.23  by the department of revenue.  For each refund levied upon, the 
 78.24  commissioner shall first deduct from the refund a fee of $20, 
 78.25  and then remit the refund or the amount of the levy, whichever 
 78.26  is less, to the Internal Revenue Service.  The proceeds of fees 
 78.27  shall be deposited into the department of revenue recapture 
 78.28  revolving fund under section 270A.07, subdivision 1. 
 78.29     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 78.30  following final enactment. 
 78.31     Sec. 89.  Minnesota Statutes 2002, section 270.44, is 
 78.32  amended to read: 
 78.33     270.44 [CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.] 
 78.34     The board may establish reasonable fees or charges for 
 78.35  courses, examinations or materials, the proceeds of which shall 
 78.36  be used to finance the activities and operation of the board. 
 79.1      The board shall charge the following fees: 
 79.2      (1) $105 for a senior accredited Minnesota assessor 
 79.3   license; 
 79.4      (2) $80 for an accredited Minnesota assessor license; 
 79.5      (3) $65 for a certified Minnesota assessor specialist 
 79.6   license; 
 79.7      (4) $55 for a certified Minnesota assessor license; 
 79.8      (5) $50 for a course challenge examination; 
 79.9      (6) $35 for grading a form appraisal; 
 79.10     (7) $60 for grading a narrative appraisal; 
 79.11     (8) $30 for a reinstatement fee; 
 79.12     (9) $25 for a record retention fee; 
 79.13     (10) $20 for an educational transcript; and 
 79.14     (11) $30 for all retests of board-sponsored educational 
 79.15  courses.  
 79.16     <h>[EFFECTIVE DATE.]</h> This section is effective for license 
 79.17  terms beginning on or after July 1, 2004, and for all other fees 
 79.18  imposed on or after July 1, 2004. 
 79.19     Sec. 90.  Minnesota Statutes 2002, section 270A.07, 
 79.20  subdivision 1, is amended to read: 
 79.21     Subdivision 1.  [NOTIFICATION REQUIREMENT.] Any claimant 
 79.22  agency, seeking collection of a debt through setoff against a 
 79.23  refund due, shall submit to the commissioner information 
 79.24  indicating the amount of each debt and information identifying 
 79.25  the debtor, as required by section 270A.04, subdivision 3.  
 79.26     For each setoff of a debt against a refund due, the 
 79.27  commissioner shall charge a fee of $10 $15.  The proceeds of 
 79.28  fees shall be allocated by depositing $2.55 $4 of each $10 $15 
 79.29  fee collected into a department of revenue recapture revolving 
 79.30  fund and depositing the remaining balance into the general 
 79.31  fund.  The sums deposited into the revolving fund are 
 79.32  appropriated to the commissioner for the purpose of 
 79.33  administering the Revenue Recapture Act. 
 79.34     The claimant agency shall notify the commissioner when a 
 79.35  debt has been satisfied or reduced by at least $200 within 30 
 79.36  days after satisfaction or reduction. 
 80.1      <h>[EFFECTIVE DATE.]</h> This section is effective for refund 
 80.2   setoffs after June 30, 2003. 
 80.3      Sec. 91.  Minnesota Statutes 2002, section 306.95, is 
 80.4   amended to read: 
 80.5      306.95 [DUTIES OF THE COUNTY AUDITOR.] 
 80.6      Subdivision 1.  [NOTIFICATION OF STATE AUDITOR.] Any county 
 80.7   auditor finding evidence of violations of this chapter when 
 80.8   reviewing reports or bonds filed by any person, firm, 
 80.9   partnership, association, or corporation operating a cemetery, 
 80.10  mausoleum, or columbarium must notify the state auditor's office 
 80.11  county attorney in a timely manner of such finding. 
 80.12     Subd. 2.  [ANNUAL LETTER.] Every county auditor must file 
 80.13  an annual letter by May 31 with the state auditor's office 
 80.14  county attorney disclosing whether the county auditor has 
 80.15  detected any indications of violations of this chapter in the 
 80.16  reports or bonds which were filed or should have been filed.  If 
 80.17  the county auditor has not detected from the information 
 80.18  supplied to the county auditor any such indications, that fact 
 80.19  must be reported to the state auditor county attorney in the 
 80.20  annual letter. 
 80.21     Sec. 92.  [326.992] [BOND REQUIREMENT; GAS, HEATING, 
 80.22  VENTILATION, AIR CONDITIONING, REFRIGERATION (G/HVACR) 
 80.23  CONTRACTORS.] 
 80.24     (a) A person contracting to do gas, heating, ventilation, 
 80.25  cooling, air conditioning, fuel burning, or refrigeration work 
 80.26  must give bond to the state in the amount of $10,000 for all 
 80.27  work entered into within the state.  The bond must be for the 
 80.28  benefit of persons suffering financial loss by reason of the 
 80.29  contractor's failure to comply with the requirements of the 
 80.30  State Mechanical Code.  A bond given to the state must be filed 
 80.31  with the commissioner of administration and is in lieu of all 
 80.32  other bonds to any political subdivision required for work 
 80.33  covered by this section.  The bond must be written by a 
 80.34  corporate surety licensed to do business in the state. 
 80.35     (b) The commissioner of administration may charge each 
 80.36  person giving bond under this section an annual bond filing fee 
 81.1   of $10.  The money must be deposited in the state government 
 81.2   special revenue fund and is appropriated to the commissioner to 
 81.3   cover the cost of administering the bond program.  
 81.4      Sec. 93.  Minnesota Statutes 2002, section 327A.01, 
 81.5   subdivision 2, is amended to read: 
 81.6      Subd. 2.  [BUILDING STANDARDS.] "Building standards" means 
 81.7   the materials and installation standards of the State Building 
 81.8   Code, adopted by the commissioner of administration pursuant to 
 81.9   sections 16B.59 to 16B.75, that is in effect at the time of the 
 81.10  construction or remodeling. 
 81.11     Sec. 94.  Minnesota Statutes 2002, section 349.12, is 
 81.12  amended by adding a subdivision to read: 
 81.13     Subd. 11a.  [DISTRIBUTOR SALESPERSON.] "Distributor 
 81.14  salesperson" means a person who in any manner receives orders 
 81.15  for gambling equipment or who solicits a licensed, exempt, or 
 81.16  excluded organization to purchase gambling equipment from a 
 81.17  licensed distributor. 
 81.18     Sec. 95.  Minnesota Statutes 2002, section 349.12, 
 81.19  subdivision 25, is amended to read: 
 81.20     Subd. 25.  [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 
 81.21  or more of the following:  
 81.22     (1) any expenditure by or contribution to a 501(c)(3) or 
 81.23  festival organization, as defined in subdivision 15a, provided 
 81.24  that the organization and expenditure or contribution are in 
 81.25  conformity with standards prescribed by the board under section 
 81.26  349.154, which standards must apply to both types of 
 81.27  organizations in the same manner and to the same extent; 
 81.28     (2) a contribution to an individual or family suffering 
 81.29  from poverty, homelessness, or physical or mental disability, 
 81.30  which is used to relieve the effects of that poverty, 
 81.31  homelessness, or disability; 
 81.32     (3) a contribution to an individual for treatment for 
 81.33  delayed posttraumatic stress syndrome or a contribution to a 
 81.34  program recognized by the Minnesota department of human services 
 81.35  for the education, prevention, or treatment of compulsive 
 81.36  gambling; 
 82.1      (4) a contribution to or expenditure on a public or private 
 82.2   nonprofit educational institution registered with or accredited 
 82.3   by this state or any other state; 
 82.4      (5) a contribution to a scholarship fund for defraying the 
 82.5   cost of education to individuals where the funds are awarded 
 82.6   through an open and fair selection process; 
 82.7      (6) activities by an organization or a government entity 
 82.8   which recognize humanitarian or military service to the United 
 82.9   States, the state of Minnesota, or a community, subject to rules 
 82.10  of the board, provided that the rules must not include mileage 
 82.11  reimbursements in the computation of the per occasion 
 82.12  reimbursement limit and must impose no aggregate annual limit on 
 82.13  the amount of reasonable and necessary expenditures made to 
 82.14  support: 
 82.15     (i) members of a military marching or color guard unit for 
 82.16  activities conducted within the state; 
 82.17     (ii) members of an organization solely for services 
 82.18  performed by the members at funeral services; or 
 82.19     (iii) members of military marching, color guard, or honor 
 82.20  guard units may be reimbursed for participating in color guard, 
 82.21  honor guard, or marching unit events within the state or states 
 82.22  contiguous to Minnesota at a per participant rate of up to $35 
 82.23  per occasion; 
 82.24     (7) recreational, community, and athletic facilities and 
 82.25  activities intended primarily for persons under age 21, provided 
 82.26  that such facilities and activities do not discriminate on the 
 82.27  basis of gender and the organization complies with section 
 82.28  349.154; 
 82.29     (8) payment of local taxes authorized under this chapter, 
 82.30  taxes imposed by the United States on receipts from lawful 
 82.31  gambling, the taxes imposed by section 297E.02, subdivisions 1, 
 82.32  4, 5, and 6, and the tax imposed on unrelated business income by 
 82.33  section 290.05, subdivision 3; 
 82.34     (9) payment of real estate taxes and assessments on 
 82.35  permitted gambling premises wholly owned by the licensed 
 82.36  organization paying the taxes, or wholly leased by a licensed 
 83.1   veterans organization under a national charter recognized under 
 83.2   section 501(c)(19) of the Internal Revenue Code, not to exceed: 
 83.3      (i) for premises used for bingo, the amount that an 
 83.4   organization may expend under board rules on rent for bingo; and 
 83.5      (ii) $35,000 per year for premises used for other forms of 
 83.6   lawful gambling; 
 83.7      (10) a contribution to the United States, this state or any 
 83.8   of its political subdivisions, or any agency or instrumentality 
 83.9   thereof other than a direct contribution to a law enforcement or 
 83.10  prosecutorial agency; 
 83.11     (11) a contribution to or expenditure by a nonprofit 
 83.12  organization which is a church or body of communicants gathered 
 83.13  in common membership for mutual support and edification in 
 83.14  piety, worship, or religious observances; 
 83.15     (12) payment of the reasonable costs of an audit required 
 83.16  in section 297E.06, subdivision 4, provided the annual audit is 
 83.17  filed in a timely manner with the department of revenue; 
 83.18     (13) a contribution to or expenditure on a wildlife 
 83.19  management project that benefits the public at-large, provided 
 83.20  that the state agency with authority over that wildlife 
 83.21  management project approves the project before the contribution 
 83.22  or expenditure is made; 
 83.23     (14) expenditures, approved by the commissioner of natural 
 83.24  resources, by an organization for grooming and maintaining 
 83.25  snowmobile trails and all-terrain vehicle trails that are (1) 
 83.26  grant-in-aid trails established under section 85.019, or (2) 
 83.27  other trails open to public use, including purchase or lease of 
 83.28  equipment for this purpose; or 
 83.29     (15) conducting nutritional programs, food shelves, and 
 83.30  congregate dining programs primarily for persons who are age 62 
 83.31  or older or disabled; 
 83.32     (16) a contribution to a community arts organization, or an 
 83.33  expenditure to sponsor arts programs in the community, including 
 83.34  but not limited to visual, literary, performing, or musical 
 83.35  arts; 
 83.36     (17) payment of heat, water, sanitation, telephone, and 
 84.1   other utility bills for a building owned or leased by, and used 
 84.2   as the primary headquarters of, a veterans organization; or 
 84.3      (18) expenditure by a veterans organization of up to $5,000 
 84.4   in a calendar year in net costs to the organization for meals 
 84.5   and other membership events, limited to members and spouses, 
 84.6   held in recognition of military service; or 
 84.7      (19) payment of fees authorized under this chapter imposed 
 84.8   by the state of Minnesota to conduct lawful gambling in 
 84.9   Minnesota. 
 84.10     (b) Notwithstanding paragraph (a), "lawful purpose" does 
 84.11  not include: 
 84.12     (1) any expenditure made or incurred for the purpose of 
 84.13  influencing the nomination or election of a candidate for public 
 84.14  office or for the purpose of promoting or defeating a ballot 
 84.15  question; 
 84.16     (2) any activity intended to influence an election or a 
 84.17  governmental decision-making process; 
 84.18     (3) the erection, acquisition, improvement, expansion, 
 84.19  repair, or maintenance of real property or capital assets owned 
 84.20  or leased by an organization, unless the board has first 
 84.21  specifically authorized the expenditures after finding that (i) 
 84.22  the real property or capital assets will be used exclusively for 
 84.23  one or more of the purposes in paragraph (a); (ii) with respect 
 84.24  to expenditures for repair or maintenance only, that the 
 84.25  property is or will be used extensively as a meeting place or 
 84.26  event location by other nonprofit organizations or community or 
 84.27  service groups and that no rental fee is charged for the use; 
 84.28  (iii) with respect to expenditures, including a mortgage payment 
 84.29  or other debt service payment, for erection or acquisition only, 
 84.30  that the erection or acquisition is necessary to replace with a 
 84.31  comparable building, a building owned by the organization and 
 84.32  destroyed or made uninhabitable by fire or natural disaster, 
 84.33  provided that the expenditure may be only for that part of the 
 84.34  replacement cost not reimbursed by insurance; (iv) with respect 
 84.35  to expenditures, including a mortgage payment or other debt 
 84.36  service payment, for erection or acquisition only, that the 
 85.1   erection or acquisition is necessary to replace with a 
 85.2   comparable building a building owned by the organization that 
 85.3   was acquired from the organization by eminent domain or sold by 
 85.4   the organization to a purchaser that the organization reasonably 
 85.5   believed would otherwise have acquired the building by eminent 
 85.6   domain, provided that the expenditure may be only for that part 
 85.7   of the replacement cost that exceeds the compensation received 
 85.8   by the organization for the building being replaced; or (v) with 
 85.9   respect to an expenditure to bring an existing building into 
 85.10  compliance with the Americans with Disabilities Act under item 
 85.11  (ii), an organization has the option to apply the amount of the 
 85.12  board-approved expenditure to the erection or acquisition of a 
 85.13  replacement building that is in compliance with the Americans 
 85.14  with Disabilities Act; 
 85.15     (4) an expenditure by an organization which is a 
 85.16  contribution to a parent organization, foundation, or affiliate 
 85.17  of the contributing organization, if the parent organization, 
 85.18  foundation, or affiliate has provided to the contributing 
 85.19  organization within one year of the contribution any money, 
 85.20  grants, property, or other thing of value; 
 85.21     (5) a contribution by a licensed organization to another 
 85.22  licensed organization unless the board has specifically 
 85.23  authorized the contribution.  The board must authorize such a 
 85.24  contribution when requested to do so by the contributing 
 85.25  organization unless it makes an affirmative finding that the 
 85.26  contribution will not be used by the recipient organization for 
 85.27  one or more of the purposes in paragraph (a); or 
 85.28     (6) a contribution to a statutory or home rule charter 
 85.29  city, county, or town by a licensed organization with the 
 85.30  knowledge that the governmental unit intends to use the 
 85.31  contribution for a pension or retirement fund. 
 85.32     Sec. 96.  Minnesota Statutes 2002, section 349.151, 
 85.33  subdivision 4, is amended to read: 
 85.34     Subd. 4.  [POWERS AND DUTIES.] (a) The board has the 
 85.35  following powers and duties:  
 85.36     (1) to regulate lawful gambling to ensure it is conducted 
 86.1   in the public interest; 
 86.2      (2) to issue licenses to organizations, 
 86.3   distributors, distributor salespersons, bingo halls, 
 86.4   manufacturers, and gambling managers; 
 86.5      (3) to collect and deposit license, permit, and 
 86.6   registration fees due under this chapter; 
 86.7      (4) to receive reports required by this chapter and inspect 
 86.8   all premises, records, books, and other documents of 
 86.9   organizations, distributors, manufacturers, and bingo halls to 
 86.10  insure compliance with all applicable laws and rules; 
 86.11     (5) to make rules authorized by this chapter; 
 86.12     (6) to register gambling equipment and issue registration 
 86.13  stamps; 
 86.14     (7) to provide by rule for the mandatory posting by 
 86.15  organizations conducting lawful gambling of rules of play and 
 86.16  the odds and/or house percentage on each form of lawful 
 86.17  gambling; 
 86.18     (8) to report annually to the governor and legislature on 
 86.19  its activities and on recommended changes in the laws governing 
 86.20  gambling; 
 86.21     (9) to impose civil penalties of not more than $500 per 
 86.22  violation on organizations, distributors, employees eligible to 
 86.23  make sales on behalf of a distributor salespersons, 
 86.24  manufacturers, bingo halls, and gambling managers for failure to 
 86.25  comply with any provision of this chapter or any rule or order 
 86.26  of the board; 
 86.27     (10) to issue premises permits to organizations licensed to 
 86.28  conduct lawful gambling; 
 86.29     (11) to delegate to the director the authority to issue or 
 86.30  deny license and premises permit applications and renewals under 
 86.31  criteria established by the board; 
 86.32     (12) to suspend or revoke licenses and premises permits of 
 86.33  organizations, distributors, distributor salespersons, 
 86.34  manufacturers, bingo halls, or gambling managers as provided in 
 86.35  this chapter; 
 86.36     (13) to register employees of organizations licensed to 
 87.1   conduct lawful gambling; 
 87.2      (14) to require fingerprints from persons determined by 
 87.3   board rule to be subject to fingerprinting; 
 87.4      (15) to delegate to a compliance review group of the board 
 87.5   the authority to investigate alleged violations, issue consent 
 87.6   orders, and initiate contested cases on behalf of the board; 
 87.7      (16) to order organizations, distributors, distributor 
 87.8   salespersons, manufacturers, bingo halls, and gambling managers 
 87.9   to take corrective actions; and 
 87.10     (17) to take all necessary steps to ensure the integrity of 
 87.11  and public confidence in lawful gambling.  
 87.12     (b) The board, or director if authorized to act on behalf 
 87.13  of the board, may by citation assess any organization, 
 87.14  distributor, employee eligible to make sales on behalf of a 
 87.15  distributor, manufacturer, bingo hall licensee, or gambling 
 87.16  manager a civil penalty of not more than $500 per violation for 
 87.17  a failure to comply with any provision of this chapter or any 
 87.18  rule adopted or order issued by the board.  Any organization, 
 87.19  distributor, bingo hall licensee, gambling manager, or 
 87.20  manufacturer assessed a civil penalty under this paragraph may 
 87.21  request a hearing before the board.  Appeals of citations 
 87.22  imposing a civil penalty are not subject to the provisions of 
 87.23  the Administrative Procedure Act.  
 87.24     (c) All fees and penalties received by the board must be 
 87.25  deposited in the general fund. 
 87.26     (d) All fees imposed by the board under sections 349.16 to 
 87.27  349.165 must be deposited in the state treasury and credited to 
 87.28  a lawful gambling regulation account in the special revenue fund.
 87.29  Receipts in this account are available for the operations of the 
 87.30  board up to the amount authorized in biennial appropriations 
 87.31  from the legislature. 
 87.32     Sec. 97.  Minnesota Statutes 2002, section 349.151, 
 87.33  subdivision 4b, is amended to read: 
 87.34     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
 87.35  The board may by rule authorize but not require the use of 
 87.36  pull-tab dispensing devices. 
 88.1      (b) Rules adopted under paragraph (a): 
 88.2      (1) must limit the number of pull-tab dispensing devices on 
 88.3   any permitted premises to three; and 
 88.4      (2) must limit the use of pull-tab dispensing devices to a 
 88.5   permitted premises which is (i) a licensed premises for on-sales 
 88.6   of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 
 88.7   licensed bingo hall that allows gambling only by persons 18 
 88.8   years or older. 
 88.9      (c) Notwithstanding rules adopted under paragraph (b), 
 88.10  pull-tab dispensing devices may be used in establishments 
 88.11  licensed for the off-sale of intoxicating liquor, other than 
 88.12  drugstores and general food stores licensed under section 
 88.13  340A.405, subdivision 1. 
 88.14     (d) The director may charge a manufacturer a fee of up to 
 88.15  $5,000 per pull-tab dispensing device to cover the costs of 
 88.16  services provided by an independent testing laboratory to 
 88.17  perform testing and analysis of pull-tab dispensing devices.  
 88.18  The director shall deposit in a separate account in the state 
 88.19  treasury all money the director receives as reimbursement for 
 88.20  the costs of services provided by independent testing 
 88.21  laboratories that have entered into contracts with the state to 
 88.22  perform testing and analysis of pull-tab dispensing devices.  
 88.23  Money in the account is appropriated to the director to pay the 
 88.24  costs of services under those contracts. 
 88.25     Sec. 98.  Minnesota Statutes 2002, section 349.155, 
 88.26  subdivision 3, is amended to read: 
 88.27     Subd. 3.  [MANDATORY DISQUALIFICATIONS.] (a) In the case of 
 88.28  licenses for manufacturers, distributors, distributor 
 88.29  salespersons, bingo halls, and gambling managers, the board may 
 88.30  not issue or renew a license under this chapter, and shall 
 88.31  revoke a license under this chapter, if the applicant or 
 88.32  licensee, or a director, officer, partner, governor, or person 
 88.33  in a supervisory or management position of the applicant or 
 88.34  licensee, or an employee eligible to make sales on behalf of the 
 88.35  applicant or licensee: 
 88.36     (1) has ever been convicted of a felony or a crime 
 89.1   involving gambling; 
 89.2      (2) has ever been convicted of (i) assault, (ii) a criminal 
 89.3   violation involving the use of a firearm, or (iii) making 
 89.4   terroristic threats; 
 89.5      (3) is or has ever been connected with or engaged in an 
 89.6   illegal business; 
 89.7      (4) owes $500 or more in delinquent taxes as defined in 
 89.8   section 270.72; 
 89.9      (5) had a sales and use tax permit revoked by the 
 89.10  commissioner of revenue within the past two years; or 
 89.11     (6) after demand, has not filed tax returns required by the 
 89.12  commissioner of revenue.  The board may deny or refuse to renew 
 89.13  a license under this chapter, and may revoke a license under 
 89.14  this chapter, if any of the conditions in this paragraph are 
 89.15  applicable to an affiliate or direct or indirect holder of more 
 89.16  than a five percent financial interest in the applicant or 
 89.17  licensee.  
 89.18     (b) In the case of licenses for organizations, the board 
 89.19  may not issue or renew a license under this chapter, and shall 
 89.20  revoke a license under this chapter, if the organization, or an 
 89.21  officer or member of the governing body of the organization:  
 89.22     (1) has been convicted of a felony or gross misdemeanor 
 89.23  within the five years before the issuance or renewal of the 
 89.24  license; 
 89.25     (2) has ever been convicted of a crime involving gambling; 
 89.26  or 
 89.27     (3) has had a license issued by the board or director 
 89.28  permanently revoked for violation of law or board rule. 
 89.29     Sec. 99.  Minnesota Statutes 2002, section 349.16, 
 89.30  subdivision 6, is amended to read: 
 89.31     Subd. 6.  [LICENSE CLASSIFICATIONS FEES.] The board may 
 89.32  issue four classes of organization licenses:  a class A license 
 89.33  authorizing all forms of lawful gambling; a class B license 
 89.34  authorizing all forms of lawful gambling except bingo; a class C 
 89.35  license authorizing bingo only, or bingo and pull-tabs if the 
 89.36  gross receipts for any combination of bingo and pull-tabs does 
 90.1   not exceed $50,000 per year; and a class D license authorizing 
 90.2   raffles only.  The board shall not charge a fee for an 
 90.3   organization impose a fee of $100 for an organization's initial 
 90.4   license application.  There is no charge for a renewal license. 
 90.5      Sec. 100.  Minnesota Statutes 2002, section 349.161, 
 90.6   subdivision 1, is amended to read: 
 90.7      Subdivision 1.  [PROHIBITED ACTS; LICENSES REQUIRED.] (a) 
 90.8   No person may:  
 90.9      (1) sell, offer for sale, or furnish gambling equipment for 
 90.10  use within the state other than for lawful gambling exempt or 
 90.11  excluded from licensing, except to an organization licensed for 
 90.12  lawful gambling; 
 90.13     (2) sell, offer for sale, or furnish gambling equipment for 
 90.14  use within the state without having obtained a distributor 
 90.15  license or a distributor salesperson license under this section; 
 90.16     (3) sell, offer for sale, or furnish gambling equipment for 
 90.17  use within the state that is not purchased or obtained from a 
 90.18  manufacturer or distributor licensed under this chapter; or 
 90.19     (4) sell, offer for sale, or furnish gambling equipment for 
 90.20  use within the state that has the same serial number as another 
 90.21  item of gambling equipment of the same type sold or offered for 
 90.22  sale or furnished for use in the state by that distributor. 
 90.23     (b) No licensed distributor salesperson may sell, offer for 
 90.24  sale, or furnish gambling equipment for use within the state 
 90.25  without being employed by a licensed distributor or owning a 
 90.26  distributor license.  
 90.27     Sec. 101.  Minnesota Statutes 2002, section 349.161, 
 90.28  subdivision 4, is amended to read: 
 90.29     Subd. 4.  [FEES.] (a) The initial annual fee for a 
 90.30  distributor's license is $3,500 $6,000.  The initial term of a 
 90.31  distributor's license is one year.  Renewal licenses under this 
 90.32  section are valid for two years and the fee for the renewal 
 90.33  license is $7,000. 
 90.34     (b) The annual fee for a distributor salesperson license is 
 90.35  $100. 
 90.36     Sec. 102.  Minnesota Statutes 2002, section 349.161, 
 91.1   subdivision 5, is amended to read: 
 91.2      Subd. 5.  [PROHIBITION.] (a) No distributor, distributor 
 91.3   salesperson, or other employee of a distributor, may also be a 
 91.4   wholesale distributor of alcoholic beverages or an employee of a 
 91.5   wholesale distributor of alcoholic beverages. 
 91.6      (b) No distributor, distributor salesperson, or any 
 91.7   representative, agent, affiliate, or other employee of a 
 91.8   distributor, may:  (1) be involved in the conduct of lawful 
 91.9   gambling by an organization; (2) keep or assist in the keeping 
 91.10  of an organization's financial records, accounts, and 
 91.11  inventories; or (3) prepare or assist in the preparation of tax 
 91.12  forms and other reporting forms required to be submitted to the 
 91.13  state by an organization. 
 91.14     (c) No distributor, distributor salesperson, or any 
 91.15  representative, agent, affiliate, or other employee of a 
 91.16  distributor may provide a lessor of gambling premises any 
 91.17  compensation, gift, gratuity, premium, or other thing of value. 
 91.18     (d) No distributor, distributor salesperson, or any 
 91.19  representative, agent, affiliate, or other employee of a 
 91.20  distributor may participate in any gambling activity at any 
 91.21  gambling site or premises where gambling equipment purchased 
 91.22  from that distributor or distributor salesperson is being used 
 91.23  in the conduct of lawful gambling. 
 91.24     (e) No distributor, distributor salesperson, or any 
 91.25  representative, agent, affiliate, or other employee of a 
 91.26  distributor may alter or modify any gambling equipment, except 
 91.27  to add a "last ticket sold" prize sticker. 
 91.28     (f) No distributor, distributor salesperson, or any 
 91.29  representative, agent, affiliate, or other employee of a 
 91.30  distributor may:  (1) recruit a person to become a gambling 
 91.31  manager of an organization or identify to an organization a 
 91.32  person as a candidate to become gambling manager for the 
 91.33  organization; or (2) identify for an organization a potential 
 91.34  gambling location. 
 91.35     (g) No distributor or distributor salesperson may purchase 
 91.36  gambling equipment for resale to a person for use within the 
 92.1   state from any person not licensed as a manufacturer under 
 92.2   section 349.163. 
 92.3      (h) No distributor or distributor salesperson may sell 
 92.4   gambling equipment to any person for use in Minnesota other than 
 92.5   (i) a licensed organization or organization excluded or exempt 
 92.6   from licensing, or (ii) the governing body of an Indian tribe. 
 92.7      (i) No distributor or distributor salesperson may sell or 
 92.8   otherwise provide a pull-tab or tipboard deal with the symbol 
 92.9   required by section 349.163, subdivision 5, paragraph (h), 
 92.10  visible on the flare to any person other than in Minnesota to a 
 92.11  licensed organization or organization exempt from licensing. 
 92.12     Sec. 103.  Minnesota Statutes 2002, section 349.162, 
 92.13  subdivision 1, is amended to read: 
 92.14     Subdivision 1.  [STAMP REQUIRED.] (a) A distributor may not 
 92.15  sell, transfer, furnish, or otherwise provide to a person, and 
 92.16  no person may purchase, borrow, accept, or acquire from a 
 92.17  distributor gambling equipment for use within the state unless 
 92.18  the equipment has been registered with the board and has a 
 92.19  registration stamp affixed, except for gambling equipment not 
 92.20  stamped by the manufacturer pursuant to section 349.163, 
 92.21  subdivision 5 or 8.  The board shall charge a fee of five cents 
 92.22  for each stamp.  Each stamp must bear a registration number 
 92.23  assigned by the board.  A distributor or manufacturer is 
 92.24  entitled to a refund for unused registration stamps and 
 92.25  replacement for registration stamps which are defective or 
 92.26  canceled by the distributor or manufacturer. 
 92.27     (b) A manufacturer must return all unused registration 
 92.28  stamps in its possession to the board by February 1, 1995.  No 
 92.29  manufacturer may possess unaffixed registration stamps after 
 92.30  February 1, 1995. 
 92.31     (c) After February 1, 1996, no person may possess any 
 92.32  unplayed pull-tab or tipboard deals with a registration stamp 
 92.33  affixed to the flare or any unplayed paddleticket cards with a 
 92.34  registration stamp affixed to the master flare.  This paragraph 
 92.35  does not apply to unplayed pull-tab or tipboard deals with a 
 92.36  registration stamp affixed to the flare, or to unplayed 
 93.1   paddleticket cards with a registration stamp affixed to the 
 93.2   master flare, if the deals or cards are identified on a list of 
 93.3   existing inventory submitted by a licensed organization or a 
 93.4   licensed distributor, in a format prescribed by the commissioner 
 93.5   of revenue, to the commissioner of revenue on or before February 
 93.6   1, 1996.  Gambling equipment kept in violation of this paragraph 
 93.7   is contraband under section 349.2125. 
 93.8      Sec. 104.  Minnesota Statutes 2002, section 349.163, 
 93.9   subdivision 2, is amended to read: 
 93.10     Subd. 2.  [LICENSE; FEE.] The initial license under this 
 93.11  section is valid for one year.  The fee for the initial license 
 93.12  is $5,000.  Renewal licenses under this section are valid for 
 93.13  two years and the fee for the renewal license is $10,000.  The 
 93.14  annual fee for a manufacturer's license is $9,000. 
 93.15     Sec. 105.  Minnesota Statutes 2002, section 349.163, 
 93.16  subdivision 6, is amended to read: 
 93.17     Subd. 6.  [SAMPLES OF GAMBLING EQUIPMENT.] The board shall 
 93.18  require each licensed manufacturer to submit to the board one or 
 93.19  more samples of each item of gambling equipment the manufacturer 
 93.20  manufactures for use or resale in this state.  The board shall 
 93.21  inspect and test all the equipment it deems necessary to 
 93.22  determine the equipment's compliance with law and board rules.  
 93.23  Samples required under this subdivision must be approved by the 
 93.24  board before the equipment being sampled is shipped into or sold 
 93.25  for use or resale in this state.  The board shall impose a fee 
 93.26  of $25 for each item of gambling equipment that the manufacturer 
 93.27  submits for approval or for which the manufacturer requests 
 93.28  approval.  The board shall impose a fee of $100 for each sample 
 93.29  of gambling equipment that it tests.  The board may require 
 93.30  samples of gambling equipment to be tested by an independent 
 93.31  testing laboratory prior to submission to the board for 
 93.32  approval.  All costs of testing by an independent testing 
 93.33  laboratory must be borne by the manufacturer.  An independent 
 93.34  testing laboratory used by a manufacturer to test samples of 
 93.35  gambling equipment must be approved by the board before the 
 93.36  equipment is submitted to the laboratory for testing.  The board 
 94.1   may request the assistance of the commissioner of public safety 
 94.2   and the director of the state lottery in performing the tests. 
 94.3      Sec. 106.  Minnesota Statutes 2002, section 349.164, 
 94.4   subdivision 4, is amended to read: 
 94.5      Subd. 4.  [FEES; TERM OF LICENSE.] The initial annual fee 
 94.6   for a bingo hall license is $2,500 $4,000.  An initial license 
 94.7   under this section is valid for one year.  Renewal licenses 
 94.8   under this section are valid for two years and the fee for the 
 94.9   renewal license is $5,000. 
 94.10     Sec. 107.  Minnesota Statutes 2002, section 349.165, 
 94.11  subdivision 3, is amended to read: 
 94.12     Subd. 3.  [FEES.] (a) The board may issue four classes of 
 94.13  premises permits corresponding to the classes of licenses 
 94.14  authorized under section 349.16, subdivision 6.  The fee for 
 94.15  each class of permit is: 
 94.16     (1) $400 for a class A permit; 
 94.17     (2) $250 for a class B permit; 
 94.18     (3) $200 for a class C permit; and 
 94.19     (4) $150 for a class D permit. 
 94.20     (b) If a premises permit is issued during the second year 
 94.21  of an organization's license, the fee for each class of permit 
 94.22  is: 
 94.23     (1) $200 for a class A permit; 
 94.24     (2) $125 for a class B permit; 
 94.25     (3) $100 for a class C permit; and 
 94.26     (4) $75 for a class D permit. 
 94.27     The monthly fee for a premises permit is 0.18 percent of 
 94.28  the organization's gross receipts from lawful gambling conducted 
 94.29  at that site.  The fee shall be reported and paid on a monthly 
 94.30  basis in a format as determined by the commissioner of revenue, 
 94.31  and remitted to the commissioner of revenue along with the 
 94.32  organization's monthly tax return for that premises.  All 
 94.33  premises permit fees received by the commissioner of revenue 
 94.34  pursuant to this subdivision must be deposited in the lawful 
 94.35  gambling regulation account of the special revenue fund 
 94.36  according to section 349.151.  Failure to pay the monthly 
 95.1   premises permit fees in a timely manner may result in 
 95.2   disciplinary action by the board. 
 95.3      Sec. 108.  Minnesota Statutes 2002, section 349.166, 
 95.4   subdivision 1, is amended to read: 
 95.5      Subdivision 1.  [EXCLUSIONS.] (a) Bingo may be conducted 
 95.6   without a license and without complying with sections 349.168, 
 95.7   subdivisions 1 and 2; 349.17, subdivisions 1, 4, and 5; 349.18, 
 95.8   subdivision 1; and 349.19, if it is conducted:  
 95.9      (1) by an organization in connection with a county fair, 
 95.10  the state fair, or a civic celebration and is not conducted for 
 95.11  more than 12 consecutive days and is limited to no more than 
 95.12  four separate applications for activities applied for and 
 95.13  approved in a calendar year; or 
 95.14     (2) by an organization that conducts four or fewer bingo 
 95.15  occasions in a calendar year.  
 95.16     An organization that holds a license to conduct lawful 
 95.17  gambling under this chapter may not conduct bingo under this 
 95.18  subdivision.  
 95.19     (b) Bingo may be conducted within a nursing home or a 
 95.20  senior citizen housing project or by a senior citizen 
 95.21  organization if the prizes for a single bingo game do not exceed 
 95.22  $10, total prizes awarded at a single bingo occasion do not 
 95.23  exceed $200, no more than two bingo occasions are held by the 
 95.24  organization or at the facility each week, only members of the 
 95.25  organization or residents of the nursing home or housing project 
 95.26  are allowed to play in a bingo game, no compensation is paid for 
 95.27  any persons who conduct the bingo, and a manager is appointed to 
 95.28  supervise the bingo.  Bingo conducted under this paragraph is 
 95.29  exempt from sections 349.11 to 349.23, and the board may not 
 95.30  require an organization that conducts bingo under this 
 95.31  paragraph, or the manager who supervises the bingo, to register 
 95.32  or file a report with the board.  The gross receipts from bingo 
 95.33  conducted under the limitations of this subdivision are exempt 
 95.34  from taxation under chapter 297A.  
 95.35     (c) Raffles may be conducted by an organization without a 
 95.36  license and without complying with sections 349.154 to 349.165 
 96.1   and 349.167 to 349.213 if the value of all raffle prizes awarded 
 96.2   by the organization in a calendar year does not 
 96.3   exceed $750 $1,500.  
 96.4      (d) Except as provided in paragraph (b), the organization 
 96.5   must maintain all required records of excluded gambling activity 
 96.6   for 3-1/2 years. 
 96.7      Sec. 109.  Minnesota Statutes 2002, section 349.166, 
 96.8   subdivision 2, is amended to read: 
 96.9      Subd. 2.  [EXEMPTIONS.] (a) Lawful gambling may be 
 96.10  conducted by an organization without a license and without 
 96.11  complying with sections 349.168, subdivisions 1 and 2; 349.17, 
 96.12  subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if: 
 96.13     (1) the organization conducts lawful gambling on five or 
 96.14  fewer days in a calendar year; 
 96.15     (2) the organization does not award more than $50,000 in 
 96.16  prizes for lawful gambling in a calendar year; 
 96.17     (3) the organization pays a fee of $25 $50 to the board, 
 96.18  notifies the board in writing not less than 30 days before each 
 96.19  lawful gambling occasion of the date and location of the 
 96.20  occasion, or 60 days for an occasion held in the case of a city 
 96.21  of the first class, the types of lawful gambling to be 
 96.22  conducted, the prizes to be awarded, and receives an exemption 
 96.23  identification number; 
 96.24     (4) the organization notifies the local government unit 30 
 96.25  days before the lawful gambling occasion, or 60 days for an 
 96.26  occasion held in a city of the first class; 
 96.27     (5) the organization purchases all gambling equipment and 
 96.28  supplies from a licensed distributor; and 
 96.29     (6) the organization reports to the board, on a single-page 
 96.30  form prescribed by the board, within 30 days of each gambling 
 96.31  occasion, the gross receipts, prizes, expenses, expenditures of 
 96.32  net profits from the occasion, and the identification of the 
 96.33  licensed distributor from whom all gambling equipment was 
 96.34  purchased.  
 96.35     (b) If the organization fails to file a timely report as 
 96.36  required by paragraph (a), clause (3) or (6), the board shall 
 97.1   not issue any authorization, license, or permit to the 
 97.2   organization to conduct lawful gambling on an exempt, excluded, 
 97.3   or licensed basis until the report has been filed. 
 97.4      (c) Merchandise prizes must be valued at their fair market 
 97.5   value. 
 97.6      (d) Unused pull-tab and tipboard deals must be returned to 
 97.7   the distributor within seven working days after the end of the 
 97.8   lawful gambling occasion.  The distributor must accept and pay a 
 97.9   refund for all returns of unopened and undamaged deals returned 
 97.10  under this paragraph. 
 97.11     (e) An organization that is exempt from taxation on 
 97.12  purchases of pull-tabs and tipboards under section 297E.02, 
 97.13  subdivision 4, paragraph (b), clause (4), must return to the 
 97.14  distributor any tipboard or pull-tab deal no part of which is 
 97.15  used at the lawful gambling occasion for which it was purchased 
 97.16  by the organization. 
 97.17     (f) The organization must maintain all required records of 
 97.18  exempt gambling activity for 3-1/2 years. 
 97.19     Sec. 110.  [349.2113] 
 97.20     On or after January 1, 2004, a licensed organization may 
 97.21  not put into play a pull-tab or tipboard deal that provides for 
 97.22  a prize payout of greater than 85 percent of the ideal gross of 
 97.23  the deal. 
 97.24     Sec. 111.  Minnesota Statutes 2002, section 349A.08, 
 97.25  subdivision 5, is amended to read: 
 97.26     Subd. 5.  [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 
 97.27  lottery must be claimed by the winner within one year of the 
 97.28  date of the drawing at which the prize was awarded or the last 
 97.29  day sales were authorized for a game where a prize was 
 97.30  determined in a manner other than by means of a drawing.  If a 
 97.31  valid claim is not made for a prize payable directly by the 
 97.32  lottery by the end of this period, the prize money is considered 
 97.33  unclaimed and the winner of the prize shall have no further 
 97.34  claim to the prize.  A prize won by a person who purchased the 
 97.35  winning ticket in violation of section 349A.12, subdivision 1, 
 97.36  or won by a person ineligible to be awarded a prize under 
 98.1   subdivision 7 must be treated as an unclaimed prize under this 
 98.2   section.  The director shall must transfer 70 percent of all 
 98.3   unclaimed prize money at the end of each fiscal year from the 
 98.4   lottery cash flow account as follows:  of the 70 percent, 40 
 98.5   percent must be transferred to the Minnesota environment and 
 98.6   natural resources trust fund and 60 percent must be transferred 
 98.7   to the general fund.  The remaining 30 percent of the unclaimed 
 98.8   prize money must be added by the director to prize pools of 
 98.9   subsequent lottery games. 
 98.10     Sec. 112.  Minnesota Statutes 2002, section 352D.04, is 
 98.11  amended by adding a subdivision to read: 
 98.12     Subd. 3.  [ADDITIONAL CONTRIBUTIONS.] The executive 
 98.13  director of the Minnesota state retirement system must allow a 
 98.14  participant in the unclassified program a onetime option, at the 
 98.15  time of hire, under which the employee contribution to the plan 
 98.16  is ten percent of salary. 
 98.17     Sec. 113.  Minnesota Statutes 2002, section 356.611, 
 98.18  subdivision 1, is amended to read: 
 98.19     Subdivision 1.  [STATE SALARY LIMITATIONS.] (a) 
 98.20  Notwithstanding any provision of law, bylaws, articles of 
 98.21  incorporation, retirement and disability allowance plan 
 98.22  agreements, or retirement plan contracts to the contrary, the 
 98.23  covered salary for pension purposes for a plan participant of a 
 98.24  covered retirement fund enumerated in section 356.30, 
 98.25  subdivision 3, may not exceed 95 percent of the salary 
 98.26  established for the governor under section 15A.082 at the time 
 98.27  the person received the salary. 
 98.28     (b) This section does not apply to a salary paid: 
 98.29     (1) to the governor; 
 98.30     (2) to an employee of a political subdivision in a position 
 98.31  that is excluded from the limit as specified under section 
 98.32  43A.17, subdivision 9 15A.23; or 
 98.33     (3) to a state employee in a position for which the 
 98.34  commissioner of employee relations has approved a salary rate 
 98.35  that exceeds 95 percent of the governor's salary. 
 98.36     (c) The limited covered salary determined under this 
 99.1   section must be used in determining employee and employer 
 99.2   contributions and in determining retirement annuities and other 
 99.3   benefits under the respective covered retirement fund and under 
 99.4   this chapter. 
 99.5      Sec. 114.  Minnesota Statutes 2002, section 458D.17, 
 99.6   subdivision 5, is amended to read: 
 99.7      Subd. 5.  [AUDIT.] The board shall provide for and pay the 
 99.8   cost of an independent annual audit of its official books and 
 99.9   records by the state public examiner auditor or a certified 
 99.10  public accountant. 
 99.11     Sec. 115.  Minnesota Statutes 2002, section 471.696, is 
 99.12  amended to read: 
 99.13     471.696 [FISCAL YEAR; DESIGNATION.] 
 99.14     Beginning in 1979, the fiscal year of a city and all of its 
 99.15  funds shall be the calendar year, except that a city may, by 
 99.16  resolution, provide that the fiscal year for city-owned nursing 
 99.17  homes be the reporting year designated by the commissioner of 
 99.18  human services.  Beginning in 1994, the fiscal year of a town 
 99.19  and all of its funds shall be the calendar year.  The state 
 99.20  auditor may upon request of a town and a showing of inability to 
 99.21  conform, extend the deadline for compliance with this section 
 99.22  for one year. 
 99.23     Sec. 116.  Minnesota Statutes 2002, section 471.999, is 
 99.24  amended to read: 
 99.25     471.999 [MAINTAINING PAY EQUITY; REPORT TO LEGISLATURE.] 
 99.26     (a) The state auditor shall monitor compliance by political 
 99.27  subdivisions with section 471.992, subdivision 1.  The state 
 99.28  auditor may charge and collect a fee pursuant to section 6.56. 
 99.29     (b) The commissioner of employee relations state auditor 
 99.30  shall report to the legislature by January 1 of each year on the 
 99.31  status of compliance with section 471.992, subdivision 1, by 
 99.32  governmental subdivisions. 
 99.33     The report must include a list of the political 
 99.34  subdivisions in compliance with section 471.992, subdivision 1, 
 99.35  and the estimated cost of compliance.  The report must also 
 99.36  include a list of political subdivisions found by the 
100.1   commissioner state auditor to be not in compliance, the basis 
100.2   for that finding, recommended changes to achieve compliance, 
100.3   estimated cost of compliance, and recommended penalties, if 
100.4   any.  The commissioner's auditor's report must include a list of 
100.5   subdivisions that did not comply with the reporting requirements 
100.6   of this section.  The commissioner state auditor may request, 
100.7   and a subdivision shall provide, any additional information 
100.8   needed for the preparation of a report under this subdivision. 
100.9      (c) Notwithstanding any rule to the contrary, beginning in 
100.10  2005, a political subdivision must report to the state auditor 
100.11  on its compliance with the requirements of sections 471.991 to 
100.12  471.999 no more frequently than once every five years.  No 
100.13  report from a political subdivision is required for 2003 and 
100.14  2004. 
100.15     Sec. 117.  Minnesota Statutes 2002, section 474A.21, is 
100.16  amended to read: 
100.17     474A.21 [APPROPRIATION; RECEIPTS.] 
100.18     Any application fees collected by the department under 
100.19  sections 474A.01 to 474A.21 must be deposited in a separate 
100.20  account in the general fund.  The amount necessary to refund 
100.21  application deposits is appropriated to the department from the 
100.22  separate account in the general fund for that purpose.  The 
100.23  interest accruing on application deposits and any application 
100.24  deposit not refunded as provided under section 474A.061, 
100.25  subdivision 4, or 474A.091, subdivision 5, or forfeited as 
100.26  provided under section 474A.131, subdivision 2, must be 
100.27  deposited in the housing trust general fund account under 
100.28  section 462A.201. 
100.29     Sec. 118.  Minnesota Statutes 2002, section 477A.014, 
100.30  subdivision 4, is amended to read: 
100.31     Subd. 4.  [COSTS.] The director of the office of strategic 
100.32  and long-range planning shall annually bill the commissioner of 
100.33  revenue for one-half of the costs incurred by the state 
100.34  demographer in the preparation of materials required by section 
100.35  4A.02.  The state auditor shall bill the commissioner of revenue 
100.36  for the costs of best practices reviews and the services 
101.1   provided by the government information division and the parts of 
101.2   the constitutional office that are related to the government 
101.3   information function, not to exceed $217,000 in fiscal year 1992 
101.4   and $217,000 in fiscal year 1993 and thereafter.  The 
101.5   commissioner of administration shall bill the commissioner of 
101.6   revenue for the costs of the local government records program 
101.7   and the intergovernmental information systems activity, not to 
101.8   exceed $201,100 in fiscal year 1992 and $205,800 in fiscal year 
101.9   1993 and thereafter.  The commissioner of employee relations 
101.10  shall bill the commissioner of revenue for the costs of 
101.11  administering the local government pay equity function, not to 
101.12  exceed $56,000 in fiscal year 1992 and $55,000 in fiscal year 
101.13  1993 and thereafter.  
101.14     <h>[EFFECTIVE DATE.]</h> The requirement in this section for the 
101.15  state auditor to bill for costs of best practices reviews is 
101.16  effective July 1, 2004.  The remainder of the section is 
101.17  effective July 1, 2003. 
101.18     Sec. 119.  [TRANSFER OF DUTIES RELATING TO PAY EQUITY.] 
101.19     The responsibilities relating to local government pay 
101.20  equity under Minnesota Statutes, sections 471.991 to 471.999, 
101.21  and Minnesota Rules, chapter 3920, are transferred from the 
101.22  department of employee relations to the state auditor.  
101.23  Minnesota Statutes, section 15.039, applies to the transfer of 
101.24  responsibilities. 
101.25     Sec. 120.  [UNCLASSIFIED PLAN.] 
101.26     The executive director of the Minnesota state retirement 
101.27  system must offer persons who are participants in the 
101.28  unclassified plan on the effective date of this section a 
101.29  onetime option to choose the ten percent contribution level 
101.30  specified in Minnesota Statutes, section 352D.04. 
101.31     Sec. 121.  [SALARY FREEZE.] 
101.32     Subdivision 1.  [SALARY INCREASES PROHIBITED.] (a) From the 
101.33  effective date of this section through June 30, 2005, a state or 
101.34  metropolitan employer must not increase the rate of salary or 
101.35  wages for any employee.  This section prohibits any increase 
101.36  including, but not limited to, across-the-board increases, 
102.1   cost-of-living adjustments, increases based on longevity, 
102.2   increases as a result of step and lane changes, increases in the 
102.3   form of lump-sum payments, increases in employer contributions 
102.4   to deferred compensation plans, or any other pay grade 
102.5   adjustments of any kind.  For purposes of this section, salary 
102.6   or wages does not include employer contributions toward the cost 
102.7   of medical or dental insurance premiums provided that employee 
102.8   contributions to the costs of medical or dental insurance 
102.9   premiums are not decreased. 
102.10     (b) This section does not prohibit an increase in the rate 
102.11  of salary and wages for an employee who is promoted or 
102.12  transferred to a position that the employer determines has 
102.13  greater job responsibilities.  
102.14     (c) Notwithstanding any law to the contrary, the terms of a 
102.15  collective bargaining agreement in effect on June 30, 2003, may 
102.16  not be extended after that date if the extension would increase 
102.17  a salary in a manner prohibited by this section. 
102.18     Subd. 2.  [FUTURE CONTRACTS.] A contract or collective 
102.19  bargaining agreement or compensation plan entered into after 
102.20  June 30, 2005, must not provide a retroactive salary, or wage 
102.21  increase that applies to a period before June 30, 2005, if that 
102.22  increase would be prohibited by this section if granted before 
102.23  June 30, 2005. 
102.24     Subd. 3.  [ARBITRATION AND STRIKES.] Notwithstanding any 
102.25  law to the contrary:  
102.26     (1) an employee may not legally strike due to a state 
102.27  employer's refusal to grant a salary or wage increase if the 
102.28  refusal is required to comply with this section; and 
102.29     (2) neither a state employer nor an exclusive 
102.30  representative may request interest arbitration in relation to 
102.31  an increase in the rate of salary or wages that is prohibited by 
102.32  this section, and an arbitrator may not issue an award that 
102.33  would increase salary or wages in a manner prohibited by this 
102.34  section. 
102.35     Subd. 4.  [DEFINITIONS.] For purposes of this section: 
102.36     (1) "state employer" means an appointing authority in the 
103.1   executive, legislative, or judicial branches as defined in 
103.2   Minnesota Statutes, section 43A.02, subdivisions 5, 22, 25, and 
103.3   27; 
103.4      (2) "metropolitan employer" means the metropolitan council 
103.5   or a metropolitan agency as defined in Minnesota Statutes, 
103.6   section 473.121, subdivision 5a; and 
103.7      (3) "employee" has the meaning given in Minnesota Statutes, 
103.8   section 43A.02, subdivision 21, and an employee of the 
103.9   metropolitan council or a metropolitan agency. 
103.10     Subd. 5.  [RELATION TO OTHER LAW.] This section supersedes 
103.11  Minnesota Statutes, chapter 179A, and any other law to the 
103.12  contrary.  It is not an unfair labor practice under Minnesota 
103.13  Statutes, chapter 179A, for a state employer to take any action 
103.14  required to comply with this section.  This section does not 
103.15  apply to an employee of the metropolitan council or a 
103.16  metropolitan agency to the extent an increase is required by a 
103.17  contract entered into before the effective date of this section. 
103.18     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2003. 
103.19     Sec. 122.  [UNIVERSITY OF MINNESOTA; SALARY AND WAGE RATE 
103.20  FREEZE RECOMMENDED.] 
103.21     The legislature strongly recommends that the University of 
103.22  Minnesota comply with section 121 as if it were defined as a 
103.23  state employer under that section. 
103.24     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2003. 
103.25     Sec. 123.  [GAMBLING CONTROL; FEE TRANSITION.] 
103.26     Effective July 1, 2003, all licensees regulated by the 
103.27  gambling control board must begin paying the applicable fees 
103.28  under Minnesota Statutes, sections 349.16 to 349.165.  The 
103.29  gambling control board shall provide a onetime, prorated credit 
103.30  against these fees to licensees who paid for licenses before 
103.31  July 1, 2003, that were to extend beyond July 1, 2003.  
103.32     Sec. 124.  [CARRYFORWARD.] 
103.33     Notwithstanding Minnesota Statutes, section 16A.28, or 
103.34  other law to the contrary, funds encumbered by the judicial or 
103.35  executive branch for severance costs; unemployment compensation 
103.36  costs; and health, dental, and life insurance continuation costs 
104.1   resulting from state employee layoffs during the fiscal year 
104.2   ending June 30, 2003, may be carried forward and may be spent 
104.3   until January 1, 2004. 
104.4      Sec. 125.  [VACATION LIMIT.] 
104.5      A state employee who takes voluntary unpaid leave of 
104.6   absence during the biennium ending June 30, 2005, must be 
104.7   allowed to accrue a vacation leave balance up to at least 300 
104.8   hours through June 30, 2005.  
104.9      Sec. 126.  [GAMING STUDY.] 
104.10     The director of the state lottery shall contract with an 
104.11  independent entity to perform an analysis of the economic 
104.12  effects of a gaming facility in the metropolitan area on 
104.13  existing tribal gaming facilities located in or within 100 miles 
104.14  of the metropolitan area. 
104.15     Sec. 127.  [EARLY SEPARATION INCENTIVE.] 
104.16     Subdivision 1.  [ELIGIBILITY.] An appointing authority in 
104.17  the executive or legislative branch of state government may 
104.18  offer the early separation incentive in this section to an 
104.19  employee who: 
104.20     (1) has at least ten years of allowable service in one or 
104.21  more of the funds listed in Minnesota Statutes, section 356.30, 
104.22  subdivision 3; and 
104.23     (2) terminates state service after the effective date of 
104.24  this section and before June 15, 2003. 
104.25     Subd. 2.  [INCENTIVE.] For an employee eligible under 
104.26  subdivision 1, the employer may provide an amount up to $15,000, 
104.27  to be deposited in the employee's account in the health care 
104.28  savings plan established by Minnesota Statutes, section 352.98. 
104.29     Subd. 3.  [DESIGNATION OF POSITIONS; EMPLOYER 
104.30  DISCRETION.] Before offering an incentive under this section, an 
104.31  appointing authority must designate the job classifications or 
104.32  positions within job classifications that qualify for the 
104.33  incentive.  The appointing authority may modify this designation 
104.34  at any time.  Designation of positions eligible for the 
104.35  incentive under this section, participation of individual 
104.36  employees, and the amount of the payment under this section are 
105.1   at the sole discretion of the appointing authority.  Unilateral 
105.2   implementation of this section by the employer is not an unfair 
105.3   labor practice under Minnesota Statutes, chapter 179A. 
105.4      Sec. 128.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
105.5      (a) Appointing authorities in state government may allow 
105.6   each employee to take unpaid leaves of absence for up to 1,040 
105.7   hours between June 1, 2003, and June 30, 2005.  The 1,040 hour 
105.8   limit replaces, and is not in addition to, limits set in prior 
105.9   laws.  Each appointing authority approving such a leave shall 
105.10  allow the employee to continue accruing vacation and sick leave, 
105.11  be eligible for paid holidays and insurance benefits, accrue 
105.12  seniority, and accrue service credit and credited salary in the 
105.13  state retirement plans as if the employee had actually been 
105.14  employed during the time of leave.  An employee covered by the 
105.15  unclassified plan may voluntarily make the employee 
105.16  contributions to the unclassified plan during the leave of 
105.17  absence.  If the employee makes these contributions, the 
105.18  appointing authority must make the employer contribution.  If 
105.19  the leave of absence is for one full pay period or longer, any 
105.20  holiday pay shall be included in the first payroll warrant after 
105.21  return from the leave of absence.  The appointing authority 
105.22  shall attempt to grant requests for the unpaid leaves of absence 
105.23  consistent with the need to continue efficient operation of the 
105.24  agency.  However, each appointing authority shall retain 
105.25  discretion to grant or refuse to grant requests for leaves of 
105.26  absence and to schedule and cancel leaves, subject to the 
105.27  applicable provisions of collective bargaining agreements and 
105.28  compensation plans. 
105.29     (b) To receive eligible service credit and credited salary 
105.30  in a defined benefit plan, the member shall pay an amount equal 
105.31  to the applicable employee contribution rates.  If an employee 
105.32  pays the employee contribution for the period of the leave under 
105.33  this section, the appointing authority must pay the employer 
105.34  contribution.  The appointing authority may, at its discretion, 
105.35  pay the employee contributions.  Contributions must be made in a 
105.36  time and manner prescribed by the executive director of the 
106.1   Minnesota state retirement association. 
106.2      Sec. 129.  [LCC; LEAVE WITHOUT PAY.] 
106.3      (a) If the legislative coordinating commission requires 
106.4   employees under its jurisdiction to take temporary leave without 
106.5   pay during the biennium ending June 30, 2005, the first 80 hours 
106.6   of leave without pay in fiscal year 2004 and the first 80 hours 
106.7   of leave without pay in fiscal year 2005 are governed by this 
106.8   section.  The commission must permit employees taking this leave 
106.9   to continue accruing vacation and sick leave, be eligible for 
106.10  paid holidays and insurance benefits, accrue seniority, and 
106.11  accrue service credit and credited salary in state retirement 
106.12  plans permitting service credits for authorized leaves of 
106.13  absence as if the employee had actually been employed during the 
106.14  time of the leave.  The commission may make the employer 
106.15  contribution to the employee's retirement plan if the employee 
106.16  participates in a defined contribution plan.  If the leave 
106.17  without pay is for one full pay period or longer, any holiday 
106.18  pay shall be included in the first payroll warrant after return 
106.19  from the leave.  Managers must attempt to schedule leaves to 
106.20  meet the needs of employees and the need to continue efficient 
106.21  operation of their offices. 
106.22     (b) Notwithstanding Minnesota Statutes, section 43A.18, 
106.23  subdivisions 2 and 3, the legislative coordinating commission 
106.24  may require employees in the office of the legislative auditor 
106.25  whose terms and conditions of employment are determined through 
106.26  the commissioner and managerial compensation plans to take leave 
106.27  without pay as described in paragraph (a). 
106.28     Sec. 130.  [OFFICIAL PUBLICATION STUDY.] 
106.29     Representatives of local public corporations, as defined in 
106.30  Minnesota Statutes, chapter 331A, must meet with representatives 
106.31  of qualified newspapers and report to the legislature by January 
106.32  15, 2004, on alternative means of official publication for local 
106.33  public corporations. 
106.34     Sec. 131.  [TRAINING SERVICES.] 
106.35     During the biennium ending June 30, 2005, state executive 
106.36  agencies must consider using services provided by the government 
107.1   training service before contracting with other outside vendors 
107.2   for similar services. 
107.3      Sec. 132.  [CRIMNET FINANCIAL AUDIT.] 
107.4      The legislative auditor must complete a financial audit of 
107.5   all components and expenditures of the group of projects 
107.6   generally referred to as CriMNet by January 31, 2004.  The audit 
107.7   must include a review of all contracts related to CriMNet for 
107.8   compliance with state law, including the laws and guidelines 
107.9   governing the issuance of contracts. 
107.10     Sec. 133.  [REVISOR'S INSTRUCTIONS.] 
107.11     (a) In the next and subsequent editions of Minnesota 
107.12  Statutes, the revisor of statutes shall replace the terms 
107.13  "commissioner of employee relations" and "commissioner" with 
107.14  "state auditor" in sections 471.991 to 471.999.  In sections 
107.15  affected by this instruction, the revisor may make changes 
107.16  necessary to correct the cross-references, punctuation, grammar, 
107.17  or structure of the remaining text and preserve its meaning. 
107.18     (b) In the next and subsequent editions of Minnesota Rules, 
107.19  chapter 3920, the revisor of statutes shall replace the terms 
107.20  "department of employee relations" and "department" with "state 
107.21  auditor."  The revisor shall replace the address listed in 
107.22  Minnesota Rules, part 3920.0100, subpart 11, with "525 Park 
107.23  Street, Suite 400, Saint Paul, Minnesota 55103."  In parts 
107.24  affected by this instruction, the revisor may make changes 
107.25  necessary to correct the cross-references, punctuation, grammar, 
107.26  or structure of the remaining text and preserve its meaning. 
107.27     Sec. 134.  [REPEALER.] 
107.28     (a) Minnesota Statutes 2002, sections 3.305, subdivision 5; 
107.29  3.9222; 3A.11; 4A.055; 6.77; 16A.151, subdivision 5; 16A.87; 
107.30  16C.18, subdivision 1; 16E.09; 43A.04, subdivision 10; 43A.17, 
107.31  subdivision 9; 149A.97, subdivision 8; 163.10; 240A.08; and 
107.32  306.97, are repealed. 
107.33     (b) Minnesota Rules, part 1950.1070, is repealed effective 
107.34  July 1, 2004. 
107.35     (c) Minnesota Statutes 2002, sections 12.221, subdivision 
107.36  5; 16B.50; and 16C.07, are repealed effective the day following 
108.1   final enactment. 
108.2      (d) Minnesota Statutes 2002, section 3.971, subdivision 8, 
108.3   is repealed effective July 1, 2004. 
108.4      (e) Minnesota Statutes 2002, section 62J.07, is repealed 
108.5   effective July 1, 2005. 
108.6      Sec. 135.  [EFFECTIVE DATE.] 
108.7      Sections 127 and 128 are effective on the day following 
108.8   final enactment. 
108.9                              ARTICLE 3 
108.10                     STATE BOARD OF INVESTMENT 
108.11                              CHANGES 
108.12     Section 1.  Minnesota Statutes 2002, section 11A.17, 
108.13  subdivision 2, is amended to read: 
108.14     Subd. 2.  [ASSETS.] The assets of the supplemental 
108.15  investment fund shall consist of the money certified and 
108.16  transmitted to the state board from the participating public 
108.17  retirement plans and funds or from the board of the Minnesota 
108.18  state colleges and universities under section 136F.45.  The 
108.19  assets must be used to purchase investment shares in the 
108.20  investment accounts specified by the plan or fund.  These 
108.21  accounts must be valued at least on a monthly basis, but may be 
108.22  valued more frequently as determined by the state board of 
108.23  investment. 
108.24     Sec. 2.  Minnesota Statutes 2002, section 352.96, 
108.25  subdivision 2, is amended to read: 
108.26     Subd. 2.  [PURCHASE OF SHARES.] The amount of compensation 
108.27  so deferred may be used to purchase: 
108.28     (1) shares in the Minnesota supplemental investment fund 
108.29  established in section 11A.17 that are selected to be offered 
108.30  under the plan by the state board of investment; 
108.31     (2) saving accounts in federally insured financial 
108.32  institutions; 
108.33     (3) life insurance contracts, fixed annuity and variable 
108.34  annuity contracts from companies that are subject to regulation 
108.35  by the commissioner of commerce; 
108.36     (4) investment options from open-end investment companies 
109.1   registered under the federal Investment Company Act of 1940, 
109.2   United States Code, title 15, sections 80a-1 to 80a-64; 
109.3      (5) investment options from a firm that is a registered 
109.4   investment advisor under the Investment Advisers Act of 1940, 
109.5   United States Code, title 15, section 80b-1 to 80b-21; 
109.6      (6) investment options of a bank as defined in United 
109.7   States Code, title 15, section 80b-2, subsection (a), paragraph 
109.8   (2), or a bank holding company as defined in the Bank Holding 
109.9   Company Act of 1956, United States Code, title 12, section 1841, 
109.10  subsection (a), paragraph (1); or 
109.11     (7) a combination of clause (1), (2), (3), (4), (5), or 
109.12  (6), as provided by the plan as specified by the participant. 
109.13     All amounts contributed to the deferred compensation plan 
109.14  and all earnings on those amounts will be held for the exclusive 
109.15  benefit of the plan participants and beneficiaries.  These 
109.16  amounts will be held in trust, in custodial accounts, or in 
109.17  qualifying annuity contracts as required by federal law and in 
109.18  accordance with section 356A.06, subdivision 1.  This 
109.19  subdivision does not authorize an employer contribution, except 
109.20  as authorized in section 356.24, subdivision 1, paragraph (a), 
109.21  clause (5).  The state, political subdivision, or other 
109.22  employing unit is not responsible for any loss that may result 
109.23  from investment of the deferred compensation. 
109.24     Sec. 3.  [EFFECTIVE DATE.] 
109.25     Sections 1 and 2 are effective July 1, 2003. 
109.26                             ARTICLE 4
109.27                EARLY RETIREMENT INCENTIVE PROGRAMS 
109.28     Section 1.  [APPLICATION.] 
109.29     Unless otherwise specified, this article applies to 
109.30  governmental subdivisions as specified in Minnesota Statutes, 
109.31  section 353.01, subdivision 6, and public employees providing 
109.32  service to the applicable employer and covered by the public 
109.33  employees retirement association general plan or police and fire 
109.34  plan under Minnesota Statutes, chapter 353, or the public 
109.35  employees retirement association local government correctional 
109.36  service retirement plan under Minnesota Statutes, chapter 353E. 
110.1      Sec. 2.  [EMPLOYEE EXCLUSION.] 
110.2      This article does not apply to any employee who provides 
110.3   service to more than one governmental subdivision, or who earns 
110.4   service credit during the time period covered by this article in 
110.5   any Minnesota public employee plan, other than a volunteer fire 
110.6   plan or a plan administered by the public employees retirement 
110.7   association under conditions specified in this article. 
110.8      Sec. 3.  [PHASED RETIREMENT.] 
110.9      (a) This section applies to a public employee who: 
110.10     (1) on the effective date of this section is regularly 
110.11  scheduled to work 1,040 or more hours a year in a position 
110.12  covered by an applicable retirement plan; 
110.13     (2) enters into an agreement with the governmental 
110.14  subdivision to work a reduced schedule that is both: 
110.15     (i) a reduction of at least 25 percent from the number of 
110.16  regularly scheduled work hours; and 
110.17     (ii) 1,040 hours or less in the covered position; and 
110.18     (3) at the time of entering into the agreement under clause 
110.19  (2), meets the age and service requirements necessary to receive 
110.20  a retirement benefit from the applicable plan. 
110.21     (b) Notwithstanding any law to the contrary, for service 
110.22  under an agreement entered into under paragraph (a), an employee 
110.23  agrees to terminate public employment meeting the requirements 
110.24  of Minnesota Statutes, section 353.01, subdivision 11a, except 
110.25  that the minimum 30-day break-in-service requirement under that 
110.26  subdivision shall not apply, and agrees to reemployment with the 
110.27  applicable governmental subdivision under terms and conditions 
110.28  specified in this section.  If an eligible public employee 
110.29  commences receipt of an annuity from a plan specified in section 
110.30  1, the provisions of Minnesota Statutes, section 353.37, 
110.31  governing annuities of reemployed annuitants shall not apply for 
110.32  the duration of the agreement. 
110.33     (c) The number of hours worked, the work schedule, and the 
110.34  duration of the phased retirement employment must be mutually 
110.35  agreed to by the employee and the governmental subdivision.  The 
110.36  governmental subdivision may not require a person to waive any 
111.1   rights under a collective bargaining agreement as a condition of 
111.2   participation in this section.  The governmental subdivision has 
111.3   sole discretion to determine if, and the extent to which, phased 
111.4   retirement under this section is available to an employee. 
111.5      (d) Notwithstanding any law to the contrary, a person may 
111.6   not earn service credit in the public employees retirement 
111.7   association for employment covered under this section, and 
111.8   employer contributions and payroll deductions for the retirement 
111.9   fund must not be made based on earnings of a person working 
111.10  under this section.  No change shall be made to a monthly 
111.11  annuity or retirement allowance based on employment under this 
111.12  section. 
111.13     (e) A person who works under this section and meets the 
111.14  definition of public employee under Minnesota Statutes, section 
111.15  179A.03, subdivision 14, is a member of the appropriate 
111.16  bargaining unit, is covered by the appropriate collective 
111.17  bargaining contract or personnel policy, and is eligible for 
111.18  health care coverage as provided in the collective bargaining 
111.19  contract or personnel policy. 
111.20     (f) An agreement under this section may apply only to work 
111.21  through June 30, 2005. 
111.22     Sec. 4.  [VOLUNTARY HOUR REDUCTION PLAN.] 
111.23     (a) This section applies to a public employee who: 
111.24     (1) on the effective date of this section is regularly 
111.25  scheduled to work 1,040 or more hours a year in a position 
111.26  covered by a pension plan administered by the public employees 
111.27  retirement association; and 
111.28     (2) enters into an agreement with a governmental 
111.29  subdivision to work a reduced schedule of 1,040 or less hours in 
111.30  the covered position. 
111.31     (b) Notwithstanding any law to the contrary, for service 
111.32  under an agreement entered into under paragraph (a), 
111.33  contributions may be made to the applicable plan of the public 
111.34  employees retirement association as if the employee had not 
111.35  reduced hours.  The employee must pay the employee contributions 
111.36  and the employer must pay employer and additional employer 
112.1   contributions necessary to bring the service credit and salary 
112.2   up to the level prior to the voluntary reduction in hours.  
112.3   Contributions must be made in a time and manner prescribed by 
112.4   the executive director of the public employees retirement 
112.5   association. 
112.6      (c) The number of hours worked, the work schedule, and the 
112.7   duration of the voluntary hour reduction must be mutually agreed 
112.8   to by the employee and the governmental subdivision.  The 
112.9   governmental subdivision may not require a person to waive any 
112.10  rights under a collective bargaining agreement as a condition of 
112.11  participation under this section.  The governmental subdivision 
112.12  has sole discretion to determine if, and the extent to which, 
112.13  voluntary hour reduction under this section is available to an 
112.14  employee. 
112.15     (d) A person who works under this section and meets the 
112.16  definition of public employee under Minnesota Statutes, section 
112.17  179A.03, subdivision 14, is a member of an appropriate 
112.18  bargaining unit, is covered by an appropriate collective 
112.19  bargaining contract or personnel policy, and is eligible for 
112.20  health care coverage as provided in a collective bargaining 
112.21  contract or personnel policy. 
112.22     (e) An agreement under this section may apply only to work 
112.23  through June 30, 2005. 
112.24     Sec. 5.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
112.25     (a) Governmental subdivisions may allow employees to take 
112.26  unpaid leaves of absence between June 1, 2003, and June 30, 
112.27  2005.  Each governmental subdivision approving a leave shall 
112.28  allow the employee to continue accruing vacation and sick leave, 
112.29  be eligible for paid holidays and insurance benefits, accrue 
112.30  seniority, and accrue service credit and credited salary in the 
112.31  public employees retirement association as if the employee had 
112.32  actually been employed during the time of leave.  If the leave 
112.33  of absence is for one full pay period or longer, any holiday pay 
112.34  shall be included in the first payroll warrant after return from 
112.35  the leave of absence.  The governmental subdivision shall 
112.36  attempt to grant requests for the unpaid leaves of absence 
113.1   consistent with the need to continue efficient operation of the 
113.2   governmental subdivision.  However, each governmental 
113.3   subdivision shall retain discretion to grant or refuse to grant 
113.4   requests for leaves of absence and to schedule and cancel 
113.5   leaves, subject to the applicable provisions of collective 
113.6   bargaining agreements and personnel policy. 
113.7      (b) To receive eligible service credit, the member shall 
113.8   pay an amount equal to the applicable employee contribution 
113.9   rates.  If an employee pays the employee contribution for the 
113.10  period of the leave under this section, the governmental 
113.11  subdivision must pay the employer contribution and the 
113.12  additional employer contribution.  The governmental subdivision 
113.13  may, at its discretion, pay employee, employer, and additional 
113.14  employer contributions to the public employees retirement 
113.15  association for the period of leave under this section.  
113.16  Contributions must be made in a time and manner prescribed by 
113.17  the executive director of the public employees retirement 
113.18  association. 
113.19     Sec. 6.  [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 
113.20     Before agreeing to an option under this article, a 
113.21  governmental subdivision must designate the job classifications 
113.22  or positions within job classifications that qualify for each 
113.23  option.  The governmental subdivision may modify this 
113.24  designation at any time.  Designation of positions eligible for 
113.25  the options and participation of individual employees under this 
113.26  article are at the sole discretion of the governmental 
113.27  subdivision.  Implementation of this article by the employer is 
113.28  not an unfair labor practice under Minnesota Statutes, chapter 
113.29  179A, or an unfair discriminatory practice under Minnesota 
113.30  Statutes, chapter 363. 
113.31     Sec. 7.  [PROGRAM APPLICATION REQUIREMENTS.] 
113.32     (a) No agreement between an eligible public employee and a 
113.33  governmental subdivision under this article is effective unless 
113.34  the employee acknowledges acceptance of the terms of the 
113.35  agreement in writing on a form prescribed by the public 
113.36  employees retirement association executive director.  
114.1      (b) A copy of the signed agreement must be transmitted to 
114.2   the public employees retirement association executive director 
114.3   within 30 days after the agreement is executed.  
114.4      Sec. 8.  [RELATIONSHIP OF SECTIONS.] 
114.5      (a) An employee covered by a phased retirement agreement 
114.6   under section 3 may not be covered by the voluntary hour 
114.7   reduction provisions of section 4 or by a voluntary unpaid leave 
114.8   of absence agreement under section 5 during the same time period 
114.9   or any later time period. 
114.10     (b) An employee covered by the voluntary hour reduction 
114.11  provisions of section 4: 
114.12     (1) may not be covered by a phased retirement agreement 
114.13  under section 3 during the same time period, but may be covered 
114.14  by a phased retirement agreement under section 3 during a later 
114.15  time period; and 
114.16     (2) may be covered by the voluntary leave of absence 
114.17  provision of section 5 during an earlier or later time period. 
114.18     Sec. 9.  [GOVERNMENTAL SUBDIVISION LIMITATION.] 
114.19     Notwithstanding Minnesota Statutes, section 353.01, 
114.20  subdivision 6, paragraph (b), to the contrary, for purposes of 
114.21  this article, the public employees retirement association is not 
114.22  a governmental subdivision. 
114.23     Sec. 10.  [EFFECTIVE DATE.] 
114.24     Sections 1 to 9 are effective the day following final 
114.25  enactment. 
114.26                             ARTICLE 5
114.27                    PUBLIC EMPLOYEES RETIREMENT
114.28                        ASSOCIATION CHANGES
114.29     Section 1.  Minnesota Statutes 2002, section 353.01, 
114.30  subdivision 2d, is amended to read: 
114.31     Subd. 2d.  [OPTIONAL MEMBERSHIP.] (a) Membership in the 
114.32  association is optional by action of the individual employee for 
114.33  the following public employees who meet the conditions set forth 
114.34  in subdivision 2a: 
114.35     (1) members of the coordinated plan who are also employees 
114.36  of labor organizations as defined in section 353.017, 
115.1   subdivision 1, for their employment by the labor organization 
115.2   only if they elect to have membership under section 353.017, 
115.3   subdivision 2; 
115.4      (2) persons who are elected or persons who are appointed to 
115.5   elected positions other than local governing body elected 
115.6   positions who elect to participate by filing a written election 
115.7   for membership; 
115.8      (3) members of the association who are appointed by the 
115.9   governor to be a state department head and who elect not to be 
115.10  covered by the general state employees retirement plan of the 
115.11  Minnesota state retirement system under section 352.021; and 
115.12     (4) city managers as defined in section 353.028, 
115.13  subdivision 1, who do not elect to be excluded from membership 
115.14  in the association under section 353.028, subdivision 2; and 
115.15     (5) employees of the port authority of the city of St. Paul 
115.16  who were at least age 45 on January 1, 2003, and who elect to 
115.17  participate by filing a written election for membership. 
115.18     (b) Membership in the association is optional by action of 
115.19  the governmental subdivision for the employees of the following 
115.20  governmental subdivisions under the conditions specified: 
115.21     (1) the Minnesota association of townships if the board of 
115.22  the association, at its option, certifies to the executive 
115.23  director that its employees are to be included for purposes of 
115.24  retirement coverage, in which case the status of the association 
115.25  as a participating employer is permanent; and 
115.26     (2) a county historical society if the county in which the 
115.27  historical society is located, at its option, certifies to the 
115.28  executive director that the employees of the historical society 
115.29  are to be county employees for purposes of retirement coverage 
115.30  under this chapter.  The status as a county employee must be 
115.31  accorded to all similarly situated county historical society 
115.32  employees and, once established, must continue as long as a 
115.33  person is an employee of the county historical society. 
115.34     (c) For employees who are covered by paragraph (a), clause 
115.35  (1), (2), or (3), or covered by paragraph (b), if the necessary 
115.36  membership election is not made, the employee is excluded from 
116.1   retirement coverage under this chapter.  For employees who are 
116.2   covered by paragraph (a), clause (4), if the necessary election 
116.3   is not made, the employee must become a member and have 
116.4   retirement coverage under this chapter.  The option to become a 
116.5   member, once exercised under this subdivision, may not be 
116.6   withdrawn until termination of public service as defined under 
116.7   subdivision 11a. 
116.8      Sec. 2.  Minnesota Statutes 2002, section 353.01, 
116.9   subdivision 6, is amended to read: 
116.10     Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
116.11  subdivision" means a county, city, town, school district within 
116.12  this state, or a department or unit of state government, or any 
116.13  public body whose revenues are derived from taxation, fees, 
116.14  assessments or from other sources. 
116.15     (b) Governmental subdivision also means the public 
116.16  employees retirement association, the league of Minnesota 
116.17  cities, the association of metropolitan municipalities, public 
116.18  hospitals owned or operated by, or an integral part of, a 
116.19  governmental subdivision or governmental subdivisions, the 
116.20  association of Minnesota counties, the metropolitan intercounty 
116.21  association, the Minnesota municipal utilities association, the 
116.22  metropolitan airports commission, the Minneapolis employees 
116.23  retirement fund for employment initially commenced after June 
116.24  30, 1979, the range association of municipalities and schools, 
116.25  soil and water conservation districts, economic development 
116.26  authorities created or operating under sections 469.090 to 
116.27  469.108, the port authority of the city of St. Paul, the Spring 
116.28  Lake Park fire department, incorporated, the Red Wing 
116.29  environmental learning center, and the Dakota county 
116.30  agricultural society. 
116.31     (c) Governmental subdivision does not mean any municipal 
116.32  housing and redevelopment authority organized under the 
116.33  provisions of sections 469.001 to 469.047; or any port authority 
116.34  organized under sections 469.048 to 469.089 other than the port 
116.35  authority of the city of St. Paul; or any hospital district 
116.36  organized or reorganized prior to July 1, 1975, under sections 
117.1   447.31 to 447.37 or the successor of the district, nor the 
117.2   Minneapolis community development agency.  
117.3      Sec. 3.  Minnesota Statutes 2002, section 353D.01, 
117.4   subdivision 2, is amended to read: 
117.5      Subd. 2.  [ELIGIBILITY.] (a) Eligibility to participate in 
117.6   the defined contribution plan is available to: 
117.7      (1) elected local government officials of a governmental 
117.8   subdivision who elect to participate in the plan under section 
117.9   353D.02, subdivision 1, and who, for the elected service 
117.10  rendered to a governmental subdivision, are not members of the 
117.11  public employees retirement association within the meaning of 
117.12  section 353.01, subdivision 7; 
117.13     (2) physicians who, if they did not elect to participate in 
117.14  the plan under section 353D.02, subdivision 2, would meet the 
117.15  definition of member under section 353.01, subdivision 7; 
117.16     (3) basic and advanced life support emergency medical 
117.17  service personnel employed by or providing services for any 
117.18  public ambulance service or privately operated ambulance service 
117.19  that receives an operating subsidy from a governmental entity 
117.20  that elects to participate under section 353D.02, subdivision 3; 
117.21  and 
117.22     (4) members of a municipal rescue squad associated with 
117.23  Litchfield in Meeker county, or of a county rescue squad 
117.24  associated with Kandiyohi county, if an independent nonprofit 
117.25  rescue squad corporation, incorporated under chapter 317A, 
117.26  performing emergency management services, and if not affiliated 
117.27  with a fire department or ambulance service and if its members 
117.28  are not eligible for membership in that fire department's or 
117.29  ambulance service's relief association or comparable pension 
117.30  plan; and 
117.31     (5) employees of the port authority of the city of St. Paul 
117.32  who elect to participate in the plan under section 353D.02, 
117.33  subdivision 5, and who are not members of the public employees 
117.34  retirement association under section 353.01, subdivision 7. 
117.35     (b) For purposes of this chapter, an elected local 
117.36  government official includes a person appointed to fill a 
118.1   vacancy in an elective office.  Service as an elected local 
118.2   government official only includes service for the governmental 
118.3   subdivision for which the official was elected by the 
118.4   public-at-large.  Service as an elected local government 
118.5   official ceases and eligibility to participate terminates when 
118.6   the person ceases to be an elected official.  An elected local 
118.7   government official does not include an elected county sheriff.  
118.8      (c) Elected local government officials, physicians, first 
118.9   response personnel and emergency medical service personnel, and 
118.10  rescue squad personnel Individuals otherwise eligible to 
118.11  participate in the plan under this subdivision who are currently 
118.12  covered by a public or private pension plan because of their 
118.13  employment or provision of services are not eligible to 
118.14  participate in the public employees defined contribution plan.  
118.15     (d) A former participant is a person who has terminated 
118.16  eligible employment or service and has not withdrawn the value 
118.17  of the person's individual account. 
118.18     Sec. 4.  Minnesota Statutes 2002, section 353D.02, is 
118.19  amended by adding a subdivision to read: 
118.20     Subd. 5.  [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 
118.21  the port authority of the city of St. Paul who do not elect to 
118.22  participate in the general employees retirement plan may elect 
118.23  to participate in the plan by filing a membership application on 
118.24  a form prescribed by the executive director of the association 
118.25  authorizing contributions to be deducted from the employee's 
118.26  salary.  Participation begins on the first day of the pay period 
118.27  for which the contributions were deducted or, if pay period 
118.28  coverage dates are not provided, the date on which the 
118.29  membership application or the contributions are received in the 
118.30  office of the association, whichever is received first, if the 
118.31  membership application is received by the association within 60 
118.32  days of the receipt of the contributions.  An election to 
118.33  participate in the plan is irrevocable.  
118.34     Sec. 5.  [RED WING ENVIRONMENTAL LEARNING CENTER.] 
118.35     (a) The legislature finds that the Red Wing environmental 
118.36  learning center has a long and very close relationship with 
119.1   independent school district No. 256, Red Wing, that Red Wing 
119.2   environmental learning center employees have been treated as 
119.3   independent school district No. 256, Red Wing, employees for 
119.4   retirement coverage purposes for 33 years, and that the current 
119.5   learning center employees would suffer a significant loss in 
119.6   their pension benefit coverage if their membership in the 
119.7   general employees retirement plan of the public employees 
119.8   retirement association was disrupted. 
119.9      (b) Notwithstanding the provisions of any other law to the 
119.10  contrary, independent school district No. 256, Red Wing, may 
119.11  certify to the executive director of the public employees 
119.12  retirement association that employees of the Red Wing 
119.13  environmental learning center are considered school district 
119.14  employees solely for purposes of retirement coverage by the 
119.15  general employees retirement plan under Minnesota Statutes, 
119.16  chapter 353.  This status must be accorded to all similarly 
119.17  situated Red Wing environmental learning center employees. 
119.18     Sec. 6.  [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 
119.19  SERVICE CREDIT PURCHASE.] 
119.20     Subdivision 1.  [ELIGIBILITY.] A full-time salaried 
119.21  employee or a permanent part-time salaried employee of the port 
119.22  authority of the city of St. Paul who was employed by the port 
119.23  authority during all or part of the period from July 1, 1993, to 
119.24  July 1, 2003, and who is a member of the general employees 
119.25  retirement plan of the public employees retirement association 
119.26  may purchase allowable service credit from the general employees 
119.27  retirement plan. 
119.28     Subd. 2.  [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 
119.29  credit that is purchasable under subdivision 1 is a period or 
119.30  periods of employment by the port authority of the city of St. 
119.31  Paul that would have been eligible service for coverage by the 
119.32  general employees retirement plan of the public employees 
119.33  retirement association if the service had been rendered after 
119.34  July 1, 2003. 
119.35     (b) The maximum period of allowable service credit in the 
119.36  general employees retirement plan of the public employees 
120.1   retirement association for purchase under this section is ten 
120.2   years. 
120.3      Subd. 3.  [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 
120.4   the service credit, the payment amount must be calculated under 
120.5   Minnesota Statutes, section 356.55. 
120.6      (b) Notwithstanding any provision of Minnesota Statutes, 
120.7   section 356.55, to the contrary, the prior service credit 
120.8   purchase payment may be made in whole or in part on an 
120.9   institution-to-institution basis from a plan qualified under the 
120.10  federal Internal Revenue Code, section 401(a), 401(k), or 
120.11  414(h), or from an annuity qualified under the federal Internal 
120.12  Revenue Code, section 403, or from a deferred compensation plan 
120.13  under the federal Internal Revenue Code, section 457, to the 
120.14  extent permitted by the applicable federal law.  In no event may 
120.15  a prior service credit purchase transfer be paid directly to the 
120.16  person purchasing the service. 
120.17     Subd. 4.  [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 
120.18  eligible person described in subdivision 1 must provide any 
120.19  documentation related to eligibility to make this service credit 
120.20  purchase required by the executive director of the public 
120.21  employees retirement association. 
120.22     (b) Allowable service credit for the purchase period or 
120.23  periods must be granted by the general employees retirement plan 
120.24  of the public employees retirement association on behalf of the 
120.25  eligible person upon receipt of the prior service credit 
120.26  purchase payment amount. 
120.27     Subd. 5.  [SUNSET.] Authority to purchase service credit 
120.28  under this section expires on December 31, 2004. 
120.29     Sec. 7.  [PRIOR SERVICE; VESTING.] 
120.30     For purposes of vesting under Minnesota Statutes, section 
120.31  353.29, subdivision 1, only, a full-time salaried employee or a 
120.32  permanent part-time salaried employee of the port authority of 
120.33  the city of St. Paul who was employed by the port authority on 
120.34  July 1, 2003, and who is a member of the general employees 
120.35  retirement plan of the public employees retirement association 
120.36  may use months of employment with the port authority before that 
121.1   date.  This service may not be used to calculate a retirement 
121.2   annuity or a disability benefit provided for under Minnesota 
121.3   Statutes, chapter 353.  
121.4      Sec. 8.  [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.] 
121.5      Employees of the port authority of the city of St. Paul who 
121.6   do not exercise the right to become members of the general 
121.7   employees retirement plan of the public employees retirement 
121.8   association under section 1 may, by onetime election, choose to 
121.9   participate in the public employees retirement association's 
121.10  defined contribution plan under Minnesota Statutes, sections 
121.11  353D.01 to 353D.12.  The election is irrevocable. 
121.12     Sec. 9.  [EFFECTIVE DATE.] 
121.13     (a) Section 2 with respect to the Red Wing environmental 
121.14  learning center, and section 5 are effective the day after the 
121.15  school board of independent school district No. 256, Red Wing, 
121.16  and its chief clerical officer timely complete their compliance 
121.17  with Minnesota Statutes, section 645.021, subdivisions 2 and 3, 
121.18  and certification to the executive director of the public 
121.19  employees retirement association. 
121.20     (b) Section 2, with respect to the port authority of the 
121.21  city of St. Paul, is effective the day following final enactment.
121.22     (c) Sections 1, 3, 4, 5, 7, and 8 are effective the day 
121.23  following final enactment. 
121.24     (d) Coverage by the general employees retirement plan of 
121.25  the public employees retirement association under sections 1 and 
121.26  2 commences July 1, 2003. 
121.27                             ARTICLE 6 
121.28                   PRIOR SERVICE CREDIT PURCHASE 
121.29                             PROVISIONS 
121.30     Section 1.  Minnesota Statutes 2002, section 356.55, 
121.31  subdivision 7, is amended to read: 
121.32     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
121.33  PROCEDURE.] (a) This section expires and is repealed on July 
121.34  1, 2003 2004. 
121.35     (b) Authority for any public pension plan to accept a prior 
121.36  service credit payment that is calculated in a timely fashion 
122.1   under this section expires on October 1, 2003 2004. 
122.2      Sec. 2.  Laws 1999, chapter 222, article 16, section 16, as 
122.3   amended by Laws 2002, chapter 392, article 7, section 1, is 
122.4   amended to read: 
122.5      Sec. 16.  [REPEALER.] 
122.6      Sections 1 to 13 are repealed on May 16, 2003 2004. 
122.7      Sec. 3.  Laws 2000, chapter 461, article 4, section 4, is 
122.8   amended to read: 
122.9      Sec. 4.  [EFFECTIVE DATE; SUNSET REPEALER.] 
122.10     (a) Sections 1, 2, and 3 are effective on the day following 
122.11  final enactment. 
122.12     (b) Sections 1, 2, and 3 are repealed on May 16, 2003 2004. 
122.13     Sec. 4.  Laws 2000, chapter 461, article 12, section 20, as 
122.14  amended by Laws 2002, chapter 392, article 7, section 2, is 
122.15  amended to read: 
122.16     Sec. 20.  [EFFECTIVE DATE.] 
122.17     (a) Sections 4, 5, and 11 to 20 are effective on the day 
122.18  following final enactment. 
122.19     (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
122.20  following final enactment and apply retroactively to a faculty 
122.21  member of the Lake Superior College who was granted an extended 
122.22  leave of absence under article 19, section 4, of the united 
122.23  technical college educators master agreement for the 1999-2000 
122.24  academic year prior to March 20, 2000. 
122.25     (c) Sections 5, 11, and 14, paragraph (c), expire on May 
122.26  16, 2003 2004.  
122.27     Sec. 5.  Laws 2001, First Special Session chapter 10, 
122.28  article 6, section 21, as amended by Laws 2002, chapter 392, 
122.29  article 7, section 3, is amended to read: 
122.30     Sec. 21.  [EXPIRATION DATE.] 
122.31     (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
122.32  18, 19, and 20 expire May 16, 2003 2004. 
122.33     (b) Sections 9 and 15 expire May 16, 2003 2004. 
122.34     Sec. 6.  [PERA-GENERAL; SERVICE CREDIT PURCHASE 
122.35  AUTHORIZED.] 
122.36     (a) Notwithstanding any provision of law to the contrary, 
123.1   an eligible person described in paragraph (b), (c), or (d) is 
123.2   authorized to purchase allowable service credit from the general 
123.3   employees retirement plan of the public employees retirement 
123.4   association under Minnesota Statutes, section 356.55 or 356.551, 
123.5   for the applicable period of prior employment as a council 
123.6   member of the city of St. Louis Park which was not credited by 
123.7   the general employees retirement plan of the public employees 
123.8   retirement association as indicated in paragraph (e). 
123.9      (b) An eligible person is a person who: 
123.10     (1) is a current member of the St. Louis Park city council 
123.11  and is a current member of the general employees retirement plan 
123.12  of the public employees retirement association; 
123.13     (2) was born on September 26, 1941; 
123.14     (3) became a St. Louis Park city council member on January 
123.15  1, 1996; and 
123.16     (4) was not a member of the general employees retirement 
123.17  plan of the public employees retirement association for the 
123.18  period January 1, 1996, to January 29, 2000. 
123.19     (c) An eligible person is a person who: 
123.20     (1) is a current member of the St. Louis Park city council 
123.21  and is a current member of the general employees retirement plan 
123.22  of the public employees retirement association; 
123.23     (2) was born on October 8, 1949; 
123.24     (3) became a St. Louis Park city council member on June 8, 
123.25  1999; and 
123.26     (4) was not a member of the general employees retirement 
123.27  plan of the public employees retirement association for the 
123.28  period June 8, 1999, to January 12, 2002. 
123.29     (d) An eligible person is a person who: 
123.30     (1) is a current member of the St. Louis Park city council 
123.31  and is a current member of the general employees retirement plan 
123.32  of the public employees retirement association; 
123.33     (2) was born on June 4, 1964; 
123.34     (3) became a St. Louis Park city council member on November 
123.35  18, 1997; and 
123.36     (4) was not a member of the general employees retirement 
124.1   plan of the public employees retirement association for the 
124.2   period November 18, 1997, to March 9, 2002. 
124.3      (e) The allowable service credit purchase period is limited 
124.4   to the period of St. Louis Park city council service that was 
124.5   not covered by the general employees retirement plan of the 
124.6   public employees retirement association.  
124.7      (f) The eligible person must provide all relevant 
124.8   documentation of the applicability of the requirements set forth 
124.9   in paragraph (b), (c), or (d) and any other applicable 
124.10  information that the executive director of the public employees 
124.11  retirement association may request. 
124.12     (g) Allowable service credit for the purchase period must 
124.13  be granted by the general employees retirement plan of the 
124.14  public employees retirement association to the eligible person 
124.15  upon receipt of the prior service credit purchase payment amount.
124.16     (h) Notwithstanding Minnesota Statutes, section 356.55, 
124.17  subdivision 5, or 356.551, subdivision 2, whichever applies, the 
124.18  city of St. Louis Park is not permitted to pay any portion of 
124.19  the service credit purchase payment amount. 
124.20     (i) The prior service credit purchase authority expires on 
124.21  July 1, 2004, or on the date of the termination of active St. 
124.22  Louis Park city council service by the eligible person, 
124.23  whichever occurs earlier. 
124.24     Sec. 7.  [REPEALER.] 
124.25     Minnesota Statutes 2002, sections 354.541 and 354A.109, are 
124.26  repealed May 16, 2004. 
124.27     Sec. 8.  [EFFECTIVE DATE.] 
124.28     Sections 1 to 7 are effective the day following final 
124.29  enactment.  
124.30                             ARTICLE 7
124.31                     GENERAL RETIREMENT CHANGES
124.32     Section 1.  Minnesota Statutes 2002, section 356B.05, is 
124.33  amended to read: 
124.34     356B.05 [PUBLIC PENSION ADMINISTRATION LEGISLATION.] 
124.35     (a) Proposed administrative legislation recommended by or 
124.36  on behalf of the Minnesota state retirement system, the public 
125.1   employees retirement association, the teachers retirement 
125.2   association, the Minneapolis employees retirement fund, or a 
125.3   first class city teachers retirement fund association, or the 
125.4   Minnesota state colleges and universities system must be 
125.5   presented to the legislative commission on pensions and 
125.6   retirement, the state and local governmental operations 
125.7   committee of the senate, and the governmental operations and 
125.8   veterans affairs policy committee of the house of 
125.9   representatives on or before October 1 of each year in order for 
125.10  the proposed administrative legislation to be acted upon during 
125.11  the upcoming legislative session.  The executive director or the 
125.12  deputy executive director of the legislative commission on 
125.13  pensions and retirement shall provide written comments on the 
125.14  proposed administrative provisions to the public pension plans 
125.15  by November 15 of each year. 
125.16     (b) Proposed administrative legislation recommended by or 
125.17  on behalf of a public employee pension plan or system under 
125.18  paragraph (a) must address provisions: 
125.19     (1) authorizing allowable service credit for leaves of 
125.20  absence and related circumstances; 
125.21     (2) governing offsets or deductions from the amount of 
125.22  disability benefits; 
125.23     (3) authorizing the purchase of allowable service credit 
125.24  for prior uncredited periods; 
125.25     (4) governing subsequent employment earnings by reemployed 
125.26  annuitants; and 
125.27     (5) authorizing retroactive effect for retirement annuity 
125.28  or benefit applications. 
125.29     (c) Where possible and desirable, taking into account the 
125.30  differences among the public pension plans in existing law and 
125.31  the unique characteristics of the individual public pension fund 
125.32  memberships, uniform provisions relating to paragraph (b) for 
125.33  all applicable public pension plans must be presented for 
125.34  consideration during the legislative session.  Supporting 
125.35  documentation setting forth the policy rationale for each set of 
125.36  uniform provisions must accompany the proposed administrative 
126.1   legislation. 
126.2      Sec. 2.  [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE TEACHER 
126.3   PLANS.] 
126.4      Subdivision 1.  [STUDY MANDATED.] The actuary retained by 
126.5   the legislative commission on pensions and retirement shall 
126.6   prepare an additional actuarial valuation report, using the 
126.7   results of the 2003 actuarial valuation reports prepared under 
126.8   Minnesota Statutes, section 356.215, that considers the 
126.9   feasibility of restructuring the Minnesota teachers retirement 
126.10  association, the Minneapolis teachers retirement fund 
126.11  association, the St. Paul teachers retirement fund association, 
126.12  and the Duluth teachers retirement plan and fund association 
126.13  into a new restructured fund. 
126.14     Subd. 2.  [CONTENTS OF STUDY.] The actuarial valuation 
126.15  report must be based on the proposals put forth in the report 
126.16  mandated by the legislature in Laws 2001, First Special Session 
126.17  chapter 10, article 11, section 20, and filed February 15, 2002, 
126.18  including changes to the postretirement adjustment, benefits, 
126.19  and restructuring administrative costs and including asset 
126.20  transfers.  The report must include any negative impacts on the 
126.21  affected plans and their members as a result of any 
126.22  restructuring plan. 
126.23     Subd. 3.  [INFORMATION PROVIDED.] The executive director of 
126.24  the teachers retirement association, the executive secretary of 
126.25  the Duluth teachers retirement fund association, the executive 
126.26  director of the St. Paul teachers retirement fund association, 
126.27  and the executive director of the Minneapolis teachers 
126.28  retirement fund association must consult with the task force 
126.29  established under Laws 2001, First Special Session chapter 10, 
126.30  article 11, section 20, and must provide the commission-retained 
126.31  actuary with all necessary information requested for the 
126.32  preparation of this report. 
126.33     Subd. 4.  [COSTS.] The cost of the actuarial valuation 
126.34  report mandated in this section will be paid by the pension 
126.35  funds named in this legislation.  The cost must be allocated 
126.36  equally between the four pension funds.  The executive director 
127.1   of the Minneapolis teachers retirement fund association shall 
127.2   serve as the fiscal agent for this study, shall pay its cost, 
127.3   and shall be reimbursed by the other three retirement funds for 
127.4   their appropriate share. 
127.5      Subd. 5.  [FILING DATE.] The report must be filed by 
127.6   January 15, 2004, with the chair of the legislative commission 
127.7   on pensions and retirement, the chair of the senate committee on 
127.8   state and local government operations, and the chair of the 
127.9   house committee on government operations and veterans affairs 
127.10  policy. 
127.11     Sec. 3.  [EFFECTIVE DATE.] 
127.12     Sections 1 and 2 are effective the day following final 
127.13  enactment. 
127.14                             ARTICLE 8 
127.15                  MINNEAPOLIS FIREFIGHTERS RELIEF 
127.16                        ASSOCIATION CHANGES 
127.17     Section 1.  Minnesota Statutes 2002, section 423C.08, is 
127.18  amended to read: 
127.19     423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 
127.20  DEATH.] 
127.21     If an active, deferred, or retired member of the 
127.22  association dies and no survivor benefit is payable, the 
127.23  designated beneficiary of the decedent or, if none, the legal 
127.24  representative of the estate of the decedent is entitled, upon 
127.25  application, to a refund.  The refund shall be an amount equal 
127.26  to the member contributions to the credit of the decedent, plus 
127.27  interest on those contributions at an annual compounded rate of 
127.28  five percent from the first day of the month following the date 
127.29  of the contribution to the first day of the month following the 
127.30  date of death of the decedent, reduced by the sum of any service 
127.31  pension or disability benefit previously paid by the fund to the 
127.32  decedent. 
127.33     Sec. 2.  [INTENT.] 
127.34     Section 1 is intended to bring the Minneapolis firefighters 
127.35  relief association's statutory provision which provides for a 
127.36  refund of member contributions where the decedent does not leave 
128.1   a surviving spouse or children in conformance with Minnesota 
128.2   Statutes, section 423A.18. 
128.3      Sec. 3.  Minnesota Statutes 2002, section 423C.03, 
128.4   subdivision 3, is amended to read: 
128.5      Subd. 3.  [COMPENSATION OF OFFICERS AND BOARD MEMBERS.] 
128.6   Notwithstanding any other law to the contrary, the association 
128.7   may provide for payment of the following salaries to its 
128.8   officers and board members: 
128.9      (1) the executive secretary may receive a salary not 
128.10  exceeding 30 50 percent of the maximum salary of a first grade 
128.11  firefighter; 
128.12     (2) the president may receive a salary not exceeding ten 
128.13  percent of the maximum salary of a first grade firefighter; and 
128.14     (3) all other elected members of the board may receive a 
128.15  salary not exceeding 2.5 percent of the maximum salary of a 
128.16  first grade firefighter. 
128.17     <h>[EFFECTIVE DATE.]</h> (a) The board of the Minneapolis 
128.18  firefighters relief association may increase the salary of the 
128.19  executive secretary subject to the maximum set forth in this 
128.20  section. 
128.21     (b) Any salary increase under paragraph (a) may be 
128.22  effective on September 1, 2002, or any time thereafter as 
128.23  designated by the relief association board. 
128.24     Sec. 4.  [EFFECTIVE DATE.] 
128.25     Section 1 is effective retroactively from September 25, 
128.26  2001.  Section 2 is effective the day following final enactment. 
128.27                             ARTICLE 9 
128.28               PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF 
128.29                        ASSOCIATION CHANGES 
128.30     Section 1.  Laws 1978, chapter 685, section 1, as amended 
128.31  by Laws 1979, chapter 201, section 41, is amended to read: 
128.32     Section 1.  [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF 
128.33  ASSOCIATION.] 
128.34     The bylaws of the Plymouth firefighter's relief association 
128.35  may be amended to provide for payment of a disability pension in 
128.36  an amount equal to $8.50 per month per year of service, to a 
129.1   maximum of $255 per month consistent with the ancillary benefit 
129.2   requirements specified in Minnesota Statutes, section 424A.02, 
129.3   subdivision 9, to a firefighter qualified pursuant to determined 
129.4   to be disabled, as defined in the bylaws of the association and 
129.5   under procedures specified in those bylaws.  No member shall be 
129.6   entitled to draw both a disability pension and a service pension.
129.7      Sec. 2.  Laws 1978, chapter 685, section 2, is amended to 
129.8   read: 
129.9      Sec. 2.  The Plymouth firefighter's relief association may 
129.10  provide for a benefit to the surviving spouse of a volunteer 
129.11  firefighter who died, providing that the surviving spouse 
129.12  qualifies under the terms of the bylaws, such benefit to be paid 
129.13  as the bylaws of the association may provide, except that the 
129.14  bylaws may not provide for a spouse's benefit of more than 
129.15  $127.50 per month, and provided the benefit shall cease as of 
129.16  the date of the spouse's remarriage and the benefit is 
129.17  consistent with ancillary benefit requirements specified in 
129.18  Minnesota Statutes, section 424A.02, subdivision 9. 
129.19     Sec. 3.  Laws 1978, chapter 685, section 3, is amended to 
129.20  read: 
129.21     Sec. 3.  The Plymouth firefighter's relief association may 
129.22  pay a pension for the children of deceased members, as the 
129.23  association's bylaws may provide, consistent with ancillary 
129.24  benefit requirements specified in Minnesota Statutes, section 
129.25  424A.02, subdivision 9. 
129.26     Sec. 4.  Laws 1978, chapter 685, section 6, is amended to 
129.27  read: 
129.28     Sec. 6.  (a) The bylaws of the Plymouth firefighter's 
129.29  relief association may further provide that when any active or 
129.30  deferred member of the association or any pensioner who is a 
129.31  former member disabilitant or service pension recipient dies, 
129.32  there may be paid a death or funeral benefit to defray or assist 
129.33  the family of the deceased with funeral expenses. 
129.34     (b) A benefit paid under this section due to the death of 
129.35  an active or deferred member must conform to Minnesota Statutes, 
129.36  section 424A.02, subdivision 9. 
130.1      (c) A death or funeral benefit may be paid under this 
130.2   section to the family of a deceased disabilitant or service 
130.3   pensioner notwithstanding Minnesota Statutes, section 424A.02, 
130.4   subdivision 9, providing that liabilities relating to this 
130.5   benefit are recognized in determinations of actuarial condition 
130.6   and funding costs, as determined under section 69.772 or 69.773, 
130.7   whichever is applicable.  Notwithstanding any law to the 
130.8   contrary, the association is authorized to use a load factor or 
130.9   factors to recognize liabilities relating to funeral or death 
130.10  benefits paid to the family of a deceased disabilitant or 
130.11  service pensioner.  Benefits are not payable under this 
130.12  paragraph if the city council does not approve the load factor 
130.13  or factors used in determinations of actuarial conditions and 
130.14  funding costs. 
130.15     Sec. 5.  [REPEALER.] 
130.16     Laws 1978, chapter 685, section 5, is repealed.  
130.17     Sec. 6.  [EFFECTIVE DATE.] 
130.18     Sections 1 to 5 are effective on the day after the date on 
130.19  which the Plymouth city council and the chief clerical officer 
130.20  of the city of Plymouth complete in a timely manner their 
130.21  compliance with Minnesota Statutes, section 645.021, 
130.22  subdivisions 2 and 3. 
130.23                             ARTICLE 10 
130.24                    VOLUNTEER FIREFIGHTER RELIEF
130.25                        ASSOCIATION CHANGES
130.26     Section 1.  Minnesota Statutes 2002, section 424A.02, 
130.27  subdivision 3, is amended to read: 
130.28     Subd. 3.  [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 
130.29  on or before August 1 of each year as part of the certification 
130.30  of the financial requirements and minimum municipal 
130.31  obligation made pursuant to determined under section 69.772, 
130.32  subdivision 4, or 69.773, subdivision 5, as applicable, the 
130.33  secretary or some other official of the relief association 
130.34  designated in the bylaws of each relief association shall 
130.35  calculate and certify to the governing body of the applicable 
130.36  qualified municipality the average amount of available financing 
131.1   per active covered firefighter for the most recent three-year 
131.2   period.  The amount of available financing shall include any 
131.3   amounts of fire state aid received or receivable by the relief 
131.4   association, any amounts of municipal contributions to the 
131.5   relief association raised from levies on real estate or from 
131.6   other available revenue sources exclusive of fire state aid, and 
131.7   one-tenth of the amount of assets in excess of the accrued 
131.8   liabilities of the relief association calculated pursuant to 
131.9   sections under section 69.772, subdivision 2; 69.773, 
131.10  subdivisions 2 and 4; or 69.774, subdivision 2, if any.  
131.11     (b) The maximum service pension which the relief 
131.12  association has authority to provide for in its bylaws for 
131.13  payment to a member retiring after the calculation date when the 
131.14  minimum age and service requirements specified in subdivision 1 
131.15  are met must be determined using the table in paragraph (c) or 
131.16  (d), whichever applies. 
131.17     (c) For a relief association where the governing bylaws 
131.18  provide for a monthly service pension to a retiring member, the 
131.19  maximum monthly service pension amount per month for each year 
131.20  of service credited that may be provided for in the bylaws is 
131.21  the maximum service pension figure corresponding to the average 
131.22  amount of available financing per active covered firefighter: 
131.23    Minimum Average Amount of      Maximum Service Pension
131.24    Available Financing per        Amount Payable per Month
131.25         Firefighter               for Each Year of Service
131.26           $...                             $ .25
131.27             42                               .50
131.28             84                              1.00
131.29            126                              1.50
131.30            168                              2.00
131.31            209                              2.50
131.32            252                              3.00
131.33            294                              3.50
131.34            335                              4.00
131.35            378                              4.50
131.36            420                              5.00
132.1             503                              6.00
132.2             587                              7.00
132.3             672                              8.00
132.4             755                              9.00
132.5             839                             10.00
132.6             923                             11.00
132.7            1007                             12.00
132.8            1090                             13.00
132.9            1175                             14.00
132.10           1259                             15.00
132.11           1342                             16.00
132.12           1427                             17.00
132.13           1510                             18.00
132.14           1594                             19.00
132.15           1677                             20.00
132.16           1762                             21.00
132.17           1845                             22.00
132.18           1888                             22.50
132.19           1929                             23.00
132.20           2014                             24.00
132.21           2098                             25.00
132.22           2183                             26.00
132.23           2267                             27.00
132.24           2351                             28.00
132.25           2436                             29.00
132.26           2520                             30.00
132.27           2604                             31.00
132.28           2689                             32.00
132.29           2773                             33.00
132.30           2857                             34.00
132.31           2942                             35.00
132.32           3026                             36.00
132.33           3110                             37.00
132.34           3963 3194                        38.00
132.35           4047 3278                        39.00
132.36           4137 3362                        40.00
133.1      Effective beginning December 31, 2000: 
133.2            4227 3446                        41.00
133.3            4317 3530                        42.00
133.4            4407 3614                        43.00
133.5            4497 3698                        44.00
133.6      Effective beginning December 31, 2001: 
133.7            4587 3782                        45.00
133.8            4677 3866                        46.00
133.9            4767 3950                        47.00
133.10           4857 4034                        48.00
133.11     Effective beginning December 31, 2002: 
133.12           4947 4118                        49.00
133.13           5037 4202                        50.00
133.14           5127 4286                        51.00
133.15           5217 4370                        52.00
133.16     Effective beginning December 31, 2003: 
133.17           5307 4454                        53.00
133.18           5397 4538                        54.00
133.19           5487 4622                        55.00
133.20           5577 4706                        56.00
133.21     (d) For a relief association in which the governing bylaws 
133.22  provide for a lump sum service pension to a retiring member, the 
133.23  maximum lump sum service pension amount for each year of service 
133.24  credited that may be provided for in the bylaws is the maximum 
133.25  service pension figure corresponding to the average amount of 
133.26  available financing per active covered firefighter for the 
133.27  applicable specified period: 
133.28   Minimum Average Amount         Maximum Lump Sum Service
133.29   of Available Financing         Pension Amount Payable
133.30      per Firefighter             for Each Year of Service
133.31          $..                              $10
133.32           11                               20
133.33           16                               30
133.34           23                               40
133.35           27                               50
133.36           32                               60
134.1            43                               80
134.2            54                              100
134.3            65                              120
134.4            77                              140
134.5            86                              160
134.6            97                              180
134.7           108                              200
134.8           131                              240
134.9           151                              280
134.10          173                              320
134.11          194                              360
134.12          216                              400
134.13          239                              440
134.14          259                              480
134.15          281                              520
134.16          302                              560
134.17          324                              600
134.18          347                              640
134.19          367                              680
134.20          389                              720
134.21          410                              760
134.22          432                              800
134.23          486                              900
134.24          540                             1000
134.25          594                             1100
134.26          648                             1200
134.27          702                             1300
134.28          756                             1400
134.29          810                             1500
134.30          864                             1600
134.31          918                             1700
134.32          972                             1800
134.33         1026                             1900
134.34         1080                             2000
134.35         1134                             2100
134.36         1188                             2200
135.1          1242                             2300
135.2          1296                             2400
135.3          1350                             2500
135.4          1404                             2600
135.5          1458                             2700
135.6          1512                             2800
135.7          1566                             2900
135.8          1620                             3000
135.9          1672                             3100
135.10         1726                             3200
135.11         1753                             3250
135.12         1780                             3300
135.13         1820                             3375
135.14         1834                             3400
135.15         1888                             3500
135.16         1942                             3600
135.17         1996                             3700
135.18         2023                             3750
135.19         2050                             3800
135.20         2104                             3900
135.21         2158                             4000
135.22         2212                             4100
135.23         2265                             4200
135.24         2319                             4300
135.25         2373                             4400
135.26         2427                             4500
135.27         2481                             4600
135.28         2535                             4700
135.29         2589                             4800
135.30         2643                             4900
135.31         2697                             5000
135.32         2751                             5100
135.33         2805                             5200
135.34         2859                             5300
135.35         2913                             5400
135.36         2967                             5500
136.1      Effective beginning December 31, 2000: 
136.2          3021                             5600
136.3          3075                             5700
136.4          3129                             5800
136.5          3183                             5900
136.6          3237                             6000
136.7      Effective beginning December 31, 2001: 
136.8          3291                             6100
136.9          3345                             6200
136.10         3399                             6300
136.11         3453                             6400
136.12         3507                             6500
136.13     Effective beginning December 31, 2002: 
136.14         3561                             6600
136.15         3615                             6700
136.16         3669                             6800
136.17         3723                             6900
136.18         3777                             7000
136.19     Effective beginning December 31, 2003: 
136.20         3831                             7100
136.21         3885                             7200
136.22         3939                             7300
136.23         3993                             7400
136.24         4047                             7500
136.25     (e) For a relief association in which the governing bylaws 
136.26  provide for a monthly benefit service pension as an alternative 
136.27  form of service pension payment to a lump sum service pension, 
136.28  the maximum service pension amount for each pension payment type 
136.29  must be determined using the applicable table contained in this 
136.30  subdivision. 
136.31     (f) If a relief association establishes a service pension 
136.32  in compliance with the applicable maximum contained in paragraph 
136.33  (c) or (d) and the minimum average amount of available financing 
136.34  per active covered firefighter is subsequently reduced because 
136.35  of a reduction in fire state aid or because of an increase in 
136.36  the number of active firefighters, the relief association may 
137.1   continue to provide the prior service pension amount specified 
137.2   in its bylaws, but may not increase the service pension amount 
137.3   until the minimum average amount of available financing per 
137.4   firefighter under the table in paragraph (c) or (d), whichever 
137.5   applies, permits. 
137.6      (g) No relief association is authorized to provide a 
137.7   service pension in an amount greater than the largest applicable 
137.8   flexible service pension maximum amount even if the amount of 
137.9   available financing per firefighter is greater than the 
137.10  financing amount associated with the largest applicable flexible 
137.11  service pension maximum. 
137.12     Sec. 2.  [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 
137.13     Notwithstanding Minnesota Statutes, section 424A.02, 
137.14  subdivisions 3 and 3a, to the contrary, the service pension 
137.15  amounts specified in the bylaws of the White Bear Lake fire 
137.16  department relief association following bylaw amendments in 
137.17  January 1999 and prior to the effective date of this section are 
137.18  ratified. 
137.19     Sec. 3.  [EFFECTIVE DATE.] 
137.20     Sections 1 and 2 are effective the day following final 
137.21  enactment.  
137.22                             ARTICLE 11
137.23                      LOCAL RETIREMENT CHANGES
137.24     Section 1.  Minnesota Statutes 2002, section 383B.49, is 
137.25  amended to read: 
137.26     383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 
137.27  SHARES.] 
137.28     When requested to do so, in writing, on forms provided by 
137.29  the county, by a participant, surviving spouse, a guardian of a 
137.30  surviving child or a personal representative, whichever is 
137.31  applicable, the county of Hennepin shall redeem shares in the 
137.32  accounts of the Minnesota supplemental investment fund standing 
137.33  in a participant's share account record under the following 
137.34  circumstances and in accordance with the laws and regulations 
137.35  governing the Minnesota supplemental investment fund: 
137.36     (1) A participant who is no longer employed by the county 
138.1   of Hennepin is entitled to receive the cash realized on the 
138.2   redemption of the shares to the credit of the participant's 
138.3   share account record of the person.  The participant may request 
138.4   the redemption of all or a portion of the shares in the 
138.5   participant's share account record of the person, but may not 
138.6   request more than one redemption in any one calendar year.  If 
138.7   only a portion of the shares in the participant's share account 
138.8   record is requested to be redeemed the person may request to 
138.9   redeem not less than 20 percent of the shares in any one 
138.10  calendar year and the redemption must be completed in no more 
138.11  than five years.  An election is irrevocable except that a 
138.12  participant may request an amendment of the election to redeem 
138.13  all of the person's remaining shares.  All requests under this 
138.14  paragraph are subject to application to and approval of the 
138.15  Hennepin county board administrator, in its the sole 
138.16  discretion of the administrator.  
138.17     (2) In the event of the death of a participant leaving a 
138.18  surviving spouse, the surviving spouse is entitled to receive 
138.19  the cash realized on the redemption of all or a portion of the 
138.20  shares in the participant's share account record of the deceased 
138.21  spouse, but in no event may the spouse request more than one 
138.22  redemption in each calendar year.  If only a portion of the 
138.23  shares in the participant's share account record is requested to 
138.24  be redeemed, the surviving spouse may request the redemption of 
138.25  not less than 20 percent of the shares in any one calendar 
138.26  year.  Redemption must be completed in no more than five years.  
138.27  An election is irrevocable except that the surviving spouse may 
138.28  request an amendment of the election to redeem all of the 
138.29  participant's remaining shares.  All requests under this 
138.30  paragraph are subject to application to and approval of the 
138.31  Hennepin county board administrator, in its the sole 
138.32  discretion of the administrator.  Upon the death of the 
138.33  surviving spouse, any shares remaining in the participant's 
138.34  share account record must be redeemed by the county of Hennepin 
138.35  and the cash realized from the redemption distributed to the 
138.36  estate of the surviving spouse. 
139.1      (3) In the event of the death of a participant leaving no 
139.2   surviving spouse, but leaving a minor surviving child or minor 
139.3   surviving children, the guardianship estate of the minor child 
139.4   is, or the guardianship estates of the minor children are, 
139.5   entitled to receive the cash realized on the redemption of all 
139.6   shares to the credit of the participant's share account record 
139.7   of the deceased participant.  In the event of minor surviving 
139.8   children, the cash realized must be paid in equal shares to the 
139.9   guardianship estates of the minor surviving children. 
139.10     (4) In the event of the death of a participant leaving no 
139.11  surviving spouse and no minor surviving children, the estate of 
139.12  the deceased participant is entitled to receive the cash 
139.13  realized on the redemption of all shares to the credit of the 
139.14  participant's share account record of the deceased participant. 
139.15     Sec. 2.  Minnesota Statutes 2002, section 383B.493, is 
139.16  amended to read: 
139.17     383B.493 [WITHDRAWAL FROM PARTICIPATION.] 
139.18     Notwithstanding Laws 1982, chapter 450, or any other law to 
139.19  the contrary, a Hennepin county employee participating in the 
139.20  Hennepin county supplemental retirement program pursuant to Laws 
139.21  1982, chapter 450 may, in the event of an unforeseeable 
139.22  emergency, apply to the county to discontinue participation in 
139.23  the program.  Employees who are no longer participating in the 
139.24  program may apply for the redemption of all shares credited to 
139.25  their share account record.  Applications are subject to 
139.26  approval of the Hennepin county board of commissioners 
139.27  administrator in its the sole discretion of the administrator.  
139.28  For the purposes of this section, the term "unforeseeable 
139.29  emergency" shall mean a severe financial hardship to the 
139.30  participant resulting from a sudden and unexpected illness or 
139.31  accident of the participant or a person dependent upon the 
139.32  participant, loss of participant's property due to casualty, or 
139.33  other similar extraordinary and unforeseeable circumstances 
139.34  arising as a result of events beyond the control of the 
139.35  participant.  Applications based on foreseeable expenditures 
139.36  normally budgetable shall not be approved.  A participant 
140.1   exercising the option provided by this section shall be 
140.2   ineligible for further participation in the supplemental 
140.3   retirement program. 
140.4      Sec. 3.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
140.5   HOC POSTRETIREMENT ADJUSTMENT.] 
140.6      In addition to the current pensions and other retirement 
140.7   benefits payable, the pensions and retirement benefits payable 
140.8   to retired police officers and firefighters and their surviving 
140.9   spouses by the Eveleth police and fire trust fund are increased 
140.10  by $100 per month.  Increases are retroactive from January 1, 
140.11  2003. 
140.12     Sec. 4.  [MARSHALL VOLUNTEER FIRE.] 
140.13     Notwithstanding any provision of Minnesota Statutes, 
140.14  section 424A.02, subdivision 7, or other law to the contrary, as 
140.15  a pilot project, the Marshall volunteer firefighter relief 
140.16  association may amend its bylaws to pay interest on deferred 
140.17  lump sum payment pensions based on a rate determined annually by 
140.18  the board of trustees based on the actual time weighted total 
140.19  rate of return investment performance of the special fund as 
140.20  reported by the office of the state auditor under Minnesota 
140.21  Statutes, section 356.219, up to five percent, and applied 
140.22  consistently for all deferred service pensioners. 
140.23     Sec. 5.  [EFFECTIVE DATE.] 
140.24     (a) Sections 1 and 2 are effective upon approval by the 
140.25  Hennepin county board of commissioners and compliance with 
140.26  Minnesota Statutes, section 645.021. 
140.27     (b) Section 3 is effective the day after the date on which 
140.28  the Eveleth city council and the chief clerical officer of the 
140.29  city of Eveleth comply with Minnesota Statutes, section 645.021, 
140.30  subdivisions 2 and 3. 
140.31     (c) Section 4 is effective the day after the date on which 
140.32  the Marshall city council and the chief clerical officer of the 
140.33  city of Marshall comply with Minnesota Statutes, section 
140.34  645.021, subdivisions 2 and 3. 
140.35                             ARTICLE 12 
140.36              PRIOR SERVICE CREDIT PURCHASE PROVISIONS 
141.1      Section 1.  Laws 2000, chapter 461, article 19, section 6, 
141.2   is amended to read:  
141.3      Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 
141.4   UNCREDITED TEACHING SERVICE PERIODS.] 
141.5      (a) An eligible person described in paragraph (b) is 
141.6   entitled to purchase allowable service credit from the 
141.7   Minneapolis teachers retirement fund association basic program 
141.8   for the periods of teaching employment specified in paragraph 
141.9   (c) by making the payment required under Minnesota Statutes, 
141.10  section 356.55. 
141.11     (b) An eligible person is a person who:  
141.12     (1) was employed by special school district No. 1 
141.13  (Minneapolis) as a long call reserve teacher from October 1972 
141.14  to June 1973 and was covered by the Minneapolis employees 
141.15  retirement fund; 
141.16     (2) was employed by special school district No. 1 
141.17  (Minneapolis) as a school social worker at Franklin junior high 
141.18  school from August 28, 1973, through June 12, 1974, and from 
141.19  August 29, 1974, through June 11, 1975, without retirement 
141.20  coverage; 
141.21     (3) was employed by special school district No. 1 
141.22  (Minneapolis) as a school social worker at North high school 
141.23  from August 29, 1975, through December 19, 1975, covered by the 
141.24  Minneapolis teachers retirement fund association; 
141.25     (4) was retained by special school district No. 1 
141.26  (Minneapolis) in the capacity of a school social worker at North 
141.27  high school as an hourly wage social worker from August 1976 
141.28  through June 1983 without retirement coverage; and 
141.29     (5) is currently employed by Hennepin county covered by the 
141.30  public employees retirement association.  
141.31     (c) The periods for allowable service credit purchase are 
141.32  August 28, 1973, through June 12, 1974; and August 29, 1974, 
141.33  through June 11, 1975.  
141.34     (d) An eligible person must provide any relevant 
141.35  documentation related to eligibility to make this service credit 
141.36  purchase required by the executive director of the Minneapolis 
142.1   teachers retirement fund association.  
142.2      (e) Allowable service credit for the purchase periods must 
142.3   be granted by the Minneapolis teachers retirement fund 
142.4   association to the account of the eligible person upon receipt 
142.5   of the prior service credit purchase payment amount.  Authority 
142.6   provided by this section is voided if payment is not made before 
142.7   December 31, 2003, or before commencing receipt of an annuity 
142.8   from the Minneapolis teachers retirement fund association, 
142.9   whichever is earlier.  
142.10     (f) The prior service credit purchase payment amount shall 
142.11  be computed by the actuary retained by the legislative 
142.12  commission on pensions and retirement. That computation must 
142.13  give recognition, in applying the process stated in Minnesota 
142.14  Statutes, section 356.55, give recognition to the liabilities 
142.15  that would be created in the Minneapolis teachers retirement 
142.16  fund association and other Minnesota public pension funds due to 
142.17  the service credit purchase.  
142.18     (g) Following receipt of that purchase payment amount, the 
142.19  executive director of the Minneapolis teachers retirement fund 
142.20  association shall allocate and transmit that amount to the 
142.21  applicable pension administrations, as determined under 
142.22  paragraph (f). 
142.23     Sec. 2.  [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 
142.24  PURCHASE FOR SABBATICAL LEAVES.] 
142.25     (a) Notwithstanding Minnesota Statutes, section 354.092, or 
142.26  any other law to the contrary, an eligible person described in 
142.27  paragraph (b) is entitled to purchase not more than three years 
142.28  of allowable service credit from the teachers retirement 
142.29  association for sabbatical leave as defined in Minnesota 
142.30  Statutes, section 122A.49. 
142.31     (b) An eligible person is a person who: 
142.32     (1) worked as a teacher for independent school district No. 
142.33  191, Burnsville-Eagan-Savage; 
142.34     (2) was on sabbatical leave at some time between January 1, 
142.35  1982, and December 31, 1989; and 
142.36     (3) did not receive service credit for time on sabbatical 
143.1   leave because the leave was not properly reported to the 
143.2   teachers retirement association. 
143.3      (c) An eligible person described in paragraph (b) must 
143.4   apply with the executive director of the teachers retirement 
143.5   association to make a service credit purchase under this 
143.6   section.  The application must be in writing and must include 
143.7   all necessary documentation of the applicability of this section 
143.8   and any other relevant information that the executive director 
143.9   may require. 
143.10     (d) Allowable service credit for the purchase periods must 
143.11  be granted by the teachers retirement association to the account 
143.12  of an eligible person upon receipt of the portion of the prior 
143.13  service credit purchase payment amount payable under paragraph 
143.14  (e) in a lump sum by the applicable eligible person. 
143.15     (e) Notwithstanding Minnesota Statutes, section 356.55 or 
143.16  356.551, whichever is applicable, an eligible person may pay 
143.17  before September 1, 2003, or the date of termination from 
143.18  service, whichever is earlier, an amount equal to the employee 
143.19  contribution rate or rates in effect during the applicable 
143.20  sabbatical leave period or periods specified in paragraph (b) 
143.21  applied to the actual salary rate or rates in effect during that 
143.22  period or periods, plus annual compound interest at the rate of 
143.23  8.5 percent from the midpoint of each applicable sabbatical 
143.24  leave period, to the date on which the payment is actually 
143.25  made.  Independent school district No. 191 must pay the 
143.26  remaining balance of the prior service credit purchase payment 
143.27  amount calculated under Minnesota Statutes, section 356.55 or 
143.28  356.551, whichever is applicable, within 30 days of the payment 
143.29  by an eligible person.  The executive director of the teachers 
143.30  retirement association must notify the superintendent of 
143.31  independent school district No. 191 of its payment amount and 
143.32  payment due date if an eligible person makes the required 
143.33  payment. 
143.34     (f) If independent school district No. 191 fails to pay its 
143.35  portion of the required prior service credit purchase payment 
143.36  amount, the executive director of the teachers retirement 
144.1   association must notify the commissioner of finance of that fact 
144.2   and the commissioner of finance must order that the required 
144.3   employer payment be deducted from the next subsequent payment or 
144.4   payments of state education aid to the school district and be 
144.5   transmitted to the teachers retirement association. 
144.6      Sec. 3.  [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED 
144.7   PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.] 
144.8      (a) An eligible individual is a teacher who: 
144.9      (1) was born on March 10, 1950; 
144.10     (2) is a basic plan member of the Minneapolis teachers 
144.11  retirement fund association; 
144.12     (3) first became a Minneapolis teachers retirement fund 
144.13  association member in August 1972; and 
144.14     (4) entered into a job sharing arrangement with another 
144.15  Minneapolis teachers retirement fund association member for the 
144.16  2001-2002 school year but failed to enter into a qualified 
144.17  part-time teacher agreement for that school year. 
144.18     (b) Notwithstanding any provision of Minnesota Statutes, 
144.19  section 354A.094, to the contrary, an eligible individual 
144.20  described in paragraph (a) is authorized to receive full-time 
144.21  salary and service credit in the Minneapolis teachers retirement 
144.22  fund association basic program for service under Minnesota 
144.23  Statutes, section 354A.094, for the 2001-2002 school year, if 
144.24  all conditions required by this section are met. 
144.25     (c) To receive the full-time equivalent service and salary 
144.26  credit for the 2001-2002 school year provided by this section, 
144.27  an eligible individual described in paragraph (a) must pay the 
144.28  applicable employee contribution under Minnesota Statutes, 
144.29  section 354A.12, subdivision 1, on the difference between the 
144.30  amount of the person's compensation from which employee 
144.31  contributions were actually deducted and the amount of the 
144.32  person's full-time equivalent salary under Minnesota Statutes, 
144.33  section 354A.094, subdivision 4.  The employee must pay 8.5 
144.34  percent interest, compounded daily, on all employee 
144.35  contributions required under this section, from the date the 
144.36  contributions would have occurred if the individual were 
145.1   employed on a full-time basis, until paid.  
145.2      (d) If payment is made under paragraph (c), upon 
145.3   notification from the Minneapolis teachers retirement fund 
145.4   association, special school district No. 1, Minneapolis, must 
145.5   pay the applicable employer and additional employer 
145.6   contributions under Minnesota Statutes, section 354A.12, 
145.7   subdivision 2a, on the difference between the person's full-time 
145.8   equivalent salary and actual salary upon which contributions 
145.9   were previously made for the eligible individual.  The employer 
145.10  must pay 8.5 percent interest, compounded daily, on all employer 
145.11  and employer additional contributions required under this 
145.12  section, from the date the contributions would have occurred if 
145.13  the individual were employed on a full-time basis, until paid. 
145.14     (e) Payments under this section must be made in a lump sum 
145.15  to the Minneapolis teachers retirement fund association.  
145.16  Payment under paragraph (c) must occur on or before June 30, 
145.17  2003, or the effective date of retirement, whichever is 
145.18  earlier.  Payment by the employer under paragraph (d) must be 
145.19  made within 30 days following payment by the eligible employee. 
145.20     (f) The eligible person must provide any relevant 
145.21  documentation that the Minneapolis teachers retirement fund 
145.22  association may request. 
145.23     Sec. 4.  [EFFECTIVE DATE.] 
145.24     This article is effective the day following final enactment.
145.25                             ARTICLE 13 
145.26                 VARIOUS ONE PERSON AND SMALL GROUP 
145.27                         RETIREMENT CHANGES 
145.28     Section 1.  [TEACHERS RETIREMENT ASSOCIATION; COVERAGE 
145.29  ELECTION OPTION DEADLINE EXTENSION.] 
145.30     (a) Notwithstanding any provision of Minnesota Statutes, 
145.31  section 354B.21, subdivision 2 or 3 to the contrary, an eligible 
145.32  person described in paragraph (b) is entitled to elect to 
145.33  continue retirement coverage by the teachers retirement 
145.34  association. 
145.35     (b) An eligible person is a person who: 
145.36     (1) was born on May 5, 1960; 
146.1      (2) was first employed as a teacher for the 1982-1983 
146.2   school year; 
146.3      (3) was employed as a teacher by independent school 
146.4   district No. 345, New London-Spicer, from the 1984-1985 school 
146.5   year until the 1994-1995 school year; 
146.6      (4) was employed as a teacher by independent school 
146.7   district No. 858, St. Charles, from the 1995-1996 school year 
146.8   through the 2001-2002 school year; 
146.9      (5) was employed by the Riverland community college on 
146.10  August 22, 2002; and 
146.11     (6) received a Minnesota state colleges and universities 
146.12  system retirement plan election form on August 27, 2002, but did 
146.13  not file the form by December 4, 2002, and received individual 
146.14  retirement account retirement plan coverage by default. 
146.15     (c) The election of teachers retirement coverage must be 
146.16  made in writing by the eligible person and must be made on or 
146.17  before September 1, 2003. 
146.18     (d) If an election of teachers retirement association 
146.19  coverage is made under this section, the Minnesota state 
146.20  colleges and universities system shall transfer from the 
146.21  individual retirement account plan member and employer 
146.22  contributions equal to ten percent of the eligible person's 
146.23  covered salary as an employee of the system from August 22, 
146.24  2002, to the date of the coverage election under this section, 
146.25  plus annual interest at the rate of 8.5 percent.  Upon the 
146.26  contribution transfer, the teachers retirement association shall 
146.27  credit the eligible person with allowable and formula service 
146.28  credit for the period August 22, 2002, to the date of the 
146.29  coverage election. 
146.30     Sec. 2.  [EFFECTIVE DATE.] 
146.31     Section 1 is effective on the day following final enactment.
146.32                             ARTICLE 14 
146.33                          EXTENDED LEAVES 
146.34     Section 1.  Minnesota Statutes 2002, section 122A.46, 
146.35  subdivision 9, is amended to read: 
146.36     Subd. 9.  [BENEFITS.] A teacher on an extended leave of 
147.1   absence shall receive all of the health, accident, medical, 
147.2   surgical and hospitalization insurance or benefits, for both the 
147.3   teacher and the teacher's dependents, for which the teacher 
147.4   would otherwise be eligible if not on an extended leave.  A 
147.5   teacher shall receive the coverage if such coverage is available 
147.6   from the school district's insurer, if the teacher requests the 
147.7   coverage, and if the teacher either (a) reimburses the district 
147.8   for the full amount of the premium necessary to maintain the 
147.9   coverage within one month following preceding the district's 
147.10  payment of the premium, or (b) if the district is wholly or 
147.11  partially self-insured, pays the district, according to a 
147.12  schedule agreed upon by the teacher and the school board, an 
147.13  amount determined by the school board to be the amount that 
147.14  would be charged for the coverage chosen by the teacher if the 
147.15  school board purchased all health, accident, medical, surgical 
147.16  and hospitalization coverage for its teachers from an 
147.17  insurer.  A school district may enter into an agreement with a 
147.18  teacher in the district where the district agrees to pay all or 
147.19  a portion of the premium for such coverage.  Any such agreement 
147.20  must include a sunset of eligibility to qualify for the payment. 
147.21     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
147.22  following final enactment and applies to agreements in effect or 
147.23  entered into after that date.  The sunset date of eligibility 
147.24  must not extend beyond June 30, 2005.  The amendments to this 
147.25  section expire on July 1, 2005. 
147.26     Sec. 2.  Minnesota Statutes 2002, section 354.094, 
147.27  subdivision 1, is amended to read: 
147.28     Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] Upon 
147.29  granting any extended leave of absence under section 122A.46 or 
147.30  136F.43, the employing unit granting the leave must certify the 
147.31  leave to the association on a form specified by the executive 
147.32  director.  A member granted an extended leave of absence under 
147.33  section 122A.46 or 136F.43 may pay employee contributions and 
147.34  receive allowable service credit toward annuities and other 
147.35  benefits under this chapter, for each year of the leave, 
147.36  provided that the member and the employing board make the 
148.1   required employer contribution in any proportion they may agree 
148.2   upon, during the period of the leave.  The employer may enter 
148.3   into an agreement with a teacher in the district under which all 
148.4   or a portion of the employee's contribution is paid by the 
148.5   employer.  Any such agreement must include a sunset of 
148.6   eligibility to qualify for the payment and must not be a part of 
148.7   the collective bargaining agreement.  The leave period must not 
148.8   exceed five years.  A member may not receive more than five 
148.9   years of allowable service credit under this section.  The 
148.10  employee and employer contributions must be based upon the rates 
148.11  of contribution prescribed by section 354.42 for the salary 
148.12  received during the year immediately preceding the extended 
148.13  leave.  Payments for the years for which a member is receiving 
148.14  service credit while on extended leave must be made on or before 
148.15  the later of June 30 of each fiscal year for which service 
148.16  credit is received or within 30 days after first notification of 
148.17  the amount due, if requested by the member, is given by the 
148.18  association.  No payment is permitted after the following 
148.19  September 30.  Payments received after June 30 must include 
148.20  interest at an annual rate of 8.5 percent from June 30 through 
148.21  the end of the month in which payment is received.  
148.22  Notwithstanding the provisions of any agreements to the 
148.23  contrary, employee and employer contributions may not be made to 
148.24  receive allowable service credit if the member does not have 
148.25  full reinstatement rights as provided in section 122A.46 or 
148.26  136F.43, both during and at the end of the extended leave. 
148.27     Any school district paying the employee's retirement 
148.28  contributions under this section shall forward to the applicable 
148.29  retirement association or retirement fund a copy of the 
148.30  agreement executed by the school district and the employee. 
148.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
148.32  following final enactment and applies to agreements in effect or 
148.33  entered into after that date.  The sunset date of eligibility 
148.34  must not extend beyond June 30, 2005.  The amendments to this 
148.35  section expire on July 1, 2005. 
148.36     Sec. 3.  [REPORT.] 
149.1      By February 1, 2005, the executive director of the teachers 
149.2   retirement association, the executive secretary of the Duluth 
149.3   teachers retirement fund association, the executive director of 
149.4   the St. Paul teachers retirement fund association, and the 
149.5   executive director of the Minneapolis teachers retirement fund 
149.6   association shall submit a report to the chair of the 
149.7   legislative commission on pensions and retirement summarizing 
149.8   the agreements entered into under Minnesota Statutes, section 
149.9   354.094, subdivision 1, on or before December 31, 2004. 
149.10                             ARTICLE 15 
149.11                             TIPBOARDS 
149.12     Section 1.  Minnesota Statutes 2002, section 349.12, 
149.13  subdivision 34, is amended to read: 
149.14     Subd. 34.  [TIPBOARD.] "Tipboard" means a board, placard or 
149.15  other device containing a seal that conceals the winning number 
149.16  or symbol, and that serves as the game flare for a tipboard 
149.17  game, or a board or placard that is not required to contain a 
149.18  seal, but for which the winning numbers are determined in whole 
149.19  or in part by the outcome of one or more professional sporting 
149.20  events. 
149.21     Sec. 2.  Minnesota Statutes 2002, section 349.151, is 
149.22  amended by adding a subdivision to read: 
149.23     Subd. 4c.  [RULES.] The board may adopt rules for the 
149.24  conduct of tipboards for which the winning numbers are 
149.25  determined in whole or in part by the outcome of one or more 
149.26  professional sporting events.  The rules must provide for 
149.27  operation procedures, internal control standards, posted 
149.28  information, records, and reports.  The rules must provide for 
149.29  the award of prizes, method of payout, wagers, determination of 
149.30  winners, and the specifications of these tipboards.  Cash or 
149.31  merchandise prizes may be awarded in these tipboards. 
149.32     Sec. 3.  Minnesota Statutes 2002, section 349.1711, 
149.33  subdivision 2, is amended to read: 
149.34     Subd. 2.  [DETERMINATION OF WINNERS.] When the 
149.35  predesignated numbers or symbols have all been purchased, or all 
149.36  of the tipboard tickets for that game have been sold, the seal 
150.1   must be removed to reveal a number or symbol that determines 
150.2   which of the predesignated numbers or symbols is the winning 
150.3   number or symbol.  A tipboard may also contain consolation 
150.4   winners, or winning chances that are determined in whole or in 
150.5   part by the outcome of one or more professional sporting events, 
150.6   that need not be determined by the use of the seal. 
150.7      Sec. 4.  Minnesota Statutes 2002, section 349.211, is 
150.8   amended by adding a subdivision to read: 
150.9      Subd. 2d.  [SPORTS BOARDS.] The maximum prize which may be 
150.10  awarded for a tipboard for which the winning numbers are 
150.11  determined in whole or in part by the outcome of one or more 
150.12  professional sporting events is $500.  A chance for such a board 
150.13  may not be sold for more than $10. 
150.14     Sec. 5.  [REPEALER.] 
150.15     Minnesota Statutes 2002, section 349.2127, subdivision 9, 
150.16  is repealed.