1.1 	A bill for an act
1.2 	relating to government operations; appropriating money
1.3 	for the general legislative and administrative
1.4 	expenses of state government; regulating state and
1.5 	local government operations; modifying provisions
1.6 	related to public employment; ratifying certain labor
1.7 	agreements and compensation plans; regulating
1.8 	elections and campaign finance; regulating Minneapolis
1.9 	teacher pensions; modifying provisions related to the
1.10 	military and veterans; providing conforming
1.11 	amendments; amending Minnesota Statutes 2004, sections
1.12 	3.011; 3.012; 3.02; 10A.01, subdivisions 5, 21, 23,
1.13 	26; 10A.025, by adding a subdivision; 10A.071,
1.14 	subdivision 3; 10A.08; 10A.20, subdivisions 2, 5, by
1.15 	adding a subdivision; 10A.27, subdivision 1; 10A.28,
1.16 	subdivision 2; 10A.31, subdivisions 1, 3, 4, 5, 6a;
1.17 	11A.04; 11A.07, subdivisions 4, 5; 11A.24, subdivision
1.18 	6; 13.635, by adding a subdivision; 14.19; 15.054;
1.19 	15B.17, subdivision 1; 16A.103, by adding a
1.20 	subdivision; 16A.1286, subdivisions 2, 3; 16A.152,
1.21 	subdivision 2; 16A.1522, subdivision 1; 16A.281;
1.22 	16B.52, subdivision 1; 16C.10, subdivision 7; 16C.144;
1.23 	16C.16, subdivision 1, by adding a subdivision;
1.24 	16C.23, by adding a subdivision; 43A.183; 43A.23,
1.25 	subdivision 1; 123B.63, subdivision 3; 126C.17,
1.26 	subdivision 11; 190.16, by adding a subdivision;
1.27 	192.19; 192.261, subdivisions 1, 2; 192.501,
1.28 	subdivision 2; 193.29, subdivision 3; 193.30; 193.31;
1.29 	197.608, subdivision 5; 200.02, subdivisions 7, 23, by
1.30 	adding a subdivision; 201.022, by adding a
1.31 	subdivision; 201.061, subdivision 3; 201.071,
1.32 	subdivision 1; 201.091, subdivision 5; 203B.01,
1.33 	subdivision 3; 203B.02, subdivision 1; 203B.04,
1.34 	subdivisions 1, 4, by adding a subdivision; 203B.07,
1.35 	subdivision 2; 203B.11, subdivision 1; 203B.12,
1.36 	subdivision 2; 203B.20; 203B.21, subdivisions 1, 3;
1.37 	203B.24, subdivision 1; 204B.10, subdivision 6;
1.38 	204B.14, subdivision 2; 204B.16, subdivisions 1, 5;
1.39 	204B.18, subdivision 1; 204B.22, subdivision 3;
1.40 	204B.27, subdivisions 1, 3; 204B.33; 204C.05,
1.41 	subdivision 1a, by adding a subdivision; 204C.08,
1.42 	subdivision 1; 204C.24, subdivision 1; 204C.28,
1.43 	subdivision 1; 204C.50, subdivisions 1, 2; 204D.03,
1.44 	subdivision 1; 204D.14, subdivision 3; 204D.27,
1.45 	subdivision 5; 205.10, subdivision 3; 205.175,
1.46 	subdivision 2; 205A.05, subdivision 1; 205A.09,
2.1 	subdivision 1; 206.56, subdivisions 2, 3, 7, 8, 9, by
2.2 	adding subdivisions; 206.57, subdivisions 1, 5, by
2.3 	adding a subdivision; 206.58, subdivision 1; 206.61,
2.4 	subdivisions 4, 5; 206.64, subdivision 1; 206.80;
2.5 	206.81; 206.82, subdivisions 1, 2; 206.83; 206.84,
2.6 	subdivisions 1, 3, 6; 206.85, subdivision 1; 206.90,
2.7 	subdivisions 1, 4, 5, 6, 8, 9; 208.03; 208.04,
2.8 	subdivision 1; 208.05; 208.06; 208.07; 208.08;
2.9 	211B.01, subdivision 3; 240A.02, subdivision 3;
2.10 	354A.08; 354A.12, subdivisions 3a, 3b; 358.11; 373.40,
2.11 	subdivision 2; 375.20; 394.25, by adding a
2.12 	subdivision; 447.32, subdivision 4; 458.40; 462.357,
2.13 	by adding a subdivision; 465.82, subdivision 2;
2.14 	465.84; 469.053, subdivision 5; 469.0724; 469.190,
2.15 	subdivision 5; 471.345, by adding a subdivision;
2.16 	471.975; 473.147, by adding a subdivision; 475.521,
2.17 	subdivision 2; 475.58, subdivisions 1, 1a; 475.59;
2.18 	507.093; 507.24, subdivision 2; Laws 2000, chapter
2.19 	461, article 4, section 4, as amended; proposing
2.20 	coding for new law in Minnesota Statutes, chapters 3;
2.21 	4; 5; 6; 8; 10A; 14; 15; 15B; 16A; 16B; 16C; 43A; 196;
2.22 	197; 204D; 205; 205A; 206; 298; 354A; 471; 507;
2.23 	proposing coding for new law as Minnesota Statutes,
2.24 	chapter 471B; repealing Minnesota Statutes 2004,
2.25 	sections 16A.151, subdivision 5; 16A.30; 16B.33;
2.26 	43A.11, subdivision 2; 197.455, subdivision 3;
2.27 	204B.22, subdivision 2; 204C.05, subdivisions 1a, 1b;
2.28 	204C.50, subdivision 7; 205.175; 205A.09; 240A.08;
2.29 	354A.28; Minnesota Rules, parts 4501.0300, subparts 1,
2.30 	4; 4501.0500, subpart 4; 4501.0600; 4503.0200, subpart
2.31 	4; 4503.0300, subpart 2; 4503.0400, subpart 2;
2.32 	4503.0500, subpart 9; 4503.0800, subpart 1.
2.33 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.34 	ARTICLE 1
2.35 	STATE GOVERNMENT APPROPRIATIONS

2.36 	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 2.37 	The sums shown in the columns marked "APPROPRIATIONS" are
2.38 	appropriated from the general fund, or another fund named, to
2.39 	the agencies and for the purposes specified in this act, to be
2.40 	available for the fiscal years indicated for each purpose.  The
2.41 	figures "2006" and "2007," where used in this act, mean that the
2.42 	appropriation or appropriations listed under them are available
2.43 	for the year ending June 30, 2006, or June 30, 2007,
2.44 	respectively.
2.45 	APPROPRIATIONS
2.46 	                                       Available for the Year
2.47 	                                           Ending June 30
2.48 	                                          2006         2007

2.49 	Sec. 2. LEGISLATURE
 2.50 		Subdivision 1.Total
2.51 	Appropriation                     $   55,340,000 $   55,341,000
2.52 	Summary by Fund
2.53 	General              55,212,000    55,213,000
3.1 	Health Care Access      128,000       128,000
3.2 	The limitations on use of funds
3.3 	specified in Minnesota Statutes,
3.4 	section 16A.281, does not apply to any
3.5 	entity in the legislative branch during
3.6 	the biennium ending June 30, 2007.
3.7 	The amounts that may be spent from this
3.8 	appropriation for each program are
3.9 	specified in the following subdivisions.
3.10 		Subd. 2.Senate
3.11 	17,644,000    17,645,000
3.12 	During the biennium ending June 30,
3.13 	2007, the senate may not reimburse a
3.14 	member for monthly housing expenses for
3.15 	more than six months in a calendar year.
3.16 		Subd. 3.House of Representatives
3.17 	25,343,000    25,343,000
3.18 		Subd. 4.Legislative
3.19 	Coordinating Commission
3.20 	12,353,000    12,353,000
3.21 	Summary by Fund
3.22 	General              12,225,000    12,225,000
3.23 	Health Care Access      128,000       128,000
3.24 	$360,000 the first year and $360,000
3.25 	the second year are for public
3.26 	information television, Internet,
3.27 	Intranet, and other transmission of
3.28 	legislative activities.
3.29 	The Legislative Coordinating
3.30 	Commission, in consultation with the
3.31 	house of representatives and senate,
3.32 	shall recommend the allocation of funds
3.33 	within this subdivision.
3.34 	On July 1, 2005, the commissioner of
3.35 	finance shall transfer $1,764,000 of
3.36 	unspent fees from the special revenue
3.37 	fund dedicated for the Electronic Real
3.38 	Estate Recording Task Force to the
3.39 	general fund.
3.40 	On July 1, 2005, the commissioner of
3.41 	finance shall transfer $3,329,000 of
3.42 	the senate accumulated carryforward
3.43 	account balance to the general fund.

3.44 	Sec. 3. GOVERNOR AND
3.45 	LIEUTENANT GOVERNOR                    3,497,000      3,496,000
 3.46 	This appropriation is to fund the
3.47 	offices of the governor and lieutenant
3.48 	governor.
3.49 	$19,000 the first year and $19,000 the
3.50 	second year are for necessary expenses
3.51 	in the normal performance of the
3.52 	governor's and lieutenant governor's
4.1 	duties for which no other reimbursement
4.2 	is provided.

4.3 	Sec. 4. STATE AUDITOR                 9,266,000      9,303,000
 4.4 	$1,010,000 the first year and
4.5 	$1,047,000 the second year are to
4.6 	restore audit practice division
4.7 	staffing levels that were reduced in
4.8 	the previous biennium.

4.9 	Sec. 5. ATTORNEY GENERAL             24,677,000     24,718,000
 4.10 	Summary by Fund
4.11 	General              22,270,000    22,295,000
4.12 	State Government
4.13 	Special Revenue       1,778,000     1,794,000
4.14 	Environmental           145,000       145,000
4.15 	Remediation             484,000       484,000

4.16 	Sec. 6. SECRETARY OF STATE            5,867,000      6,038,000

4.17 	Sec. 7. CAMPAIGN FINANCE AND
4.18 	PUBLIC DISCLOSURE BOARD                  694,000        694,000

4.19 	Sec. 8. INVESTMENT BOARD                217,000        217,000

4.20 	Sec. 9. ADMINISTRATIVE HEARINGS       7,714,000      7,620,000
 4.21 	Summary by Fund
4.22 	General                 262,000       262,000
4.23 	Workers'
4.24 	Compensation          7,452,000     7,358,000
4.25 	Fee rates charged during fiscal years
4.26 	2006 and 2007 by the Administrative Law
4.27 	Division of the Office of
4.28 	Administrative Hearings shall be those
4.29 	approved by the commissioner of finance
4.30 	pursuant to Minnesota Statutes, section
4.31 	16A.126.

4.32 	Sec. 10. ADMINISTRATION
 4.33 		Subdivision 1.Total
4.34 	Appropriation                         28,394,000     21,442,000
4.35 	The amounts that may be spent from this
4.36 	appropriation for each program are
4.37 	specified in the following subdivisions.
4.38 		Subd. 2.Technology Services
4.39 	1,803,000      1,803,000
4.40 		Subd. 3.State Facilities Services
4.41 	17,598,000     10,946,000
4.42 	$6,652,000 the first year is for
4.43 	onetime funding of agency relocation
4.44 	expenses.  The Department of Human
4.45 	Services will obtain federal
4.46 	reimbursement for associated relocation
4.47 	expenses.  This amount, estimated to be
5.1 	$1,870,000, will be deposited in the
5.2 	general fund.
5.3 	$7,888,000 the first year and
5.4 	$7,888,000 the second year are for
5.5 	office space costs of the legislature
5.6 	and veterans organizations, for
5.7 	ceremonial space, and for statutorily
5.8 	free space.
5.9 	$2,000,000 of the balance in the state
5.10 	building code account in the state
5.11 	government special revenue fund is
5.12 	canceled to the general fund.
5.13 	$2,500,000 the first year and
5.14 	$2,500,000 the second year of the
5.15 	balance in the facilities repair and
5.16 	replacement account in the special
5.17 	revenue fund is canceled to the general
5.18 	fund.
5.19 		Subd. 4.State and Community Services
5.20 	2,665,000     2,465,000
5.21 	$458,000 the first year and $258,000
5.22 	the second year are for the Land
5.23 	Management Information Center.
5.24 		Subd. 5.Administrative Management Services
5.25 	4,662,000      4,562,000
5.26 	$100,000 the first year is for a
5.27 	onetime grant to Assistive Technology
5.28 	of Minnesota to administer a microloan
5.29 	program to support purchase of
5.30 	equipment and devices for people with
5.31 	disabilities and their families and
5.32 	employers, and to develop the Access to
5.33 	Telework program.
5.34 		Subd. 6.Public Broadcasting
5.35 	1,666,000     1,666,000
5.36 	$951,000 the first year and $951,000
5.37 	the second year are for matching grants
5.38 	for public television.
5.39 	$393,000 the first year and $393,000
5.40 	the second year are for public
5.41 	television equipment grants.
5.42 	Equipment or matching grant allocations
5.43 	shall be made after considering the
5.44 	recommendations of the Minnesota Public
5.45 	Television Association.
5.46 	$17,000 the first year and $17,000 the
5.47 	second year are for grants to the Twin
5.48 	Cities regional cable channel.
5.49 	$305,000 the first year and $305,000
5.50 	the second year are for community
5.51 	service grants to public educational
5.52 	radio stations.  The grants must be
5.53 	allocated after considering the
5.54 	recommendations of the Association of
5.55 	Minnesota Public Educational Radio
6.1 	Stations under Minnesota Statutes,
6.2 	section 129D.14.

6.3 	Sec. 11. CAPITOL AREA ARCHITECTURAL
6.4 	AND PLANNING BOARD                       262,000        262,000

6.5 	Sec. 12. FINANCE
 6.6 		Subdivision 1.Total
6.7 	Appropriation                         14,808,000     14,808,000
6.8 	The amounts that may be spent from this
6.9 	appropriation for each program are
6.10 	specified in the following subdivisions.
6.11 		Subd. 2.State Financial Management
6.12 	8,447,000      8,447,000
6.13 		Subd. 3.Information and
6.14 	Management Services
6.15 	6,361,000      6,361,000

6.16 	Sec. 13. EMPLOYEE RELATIONS           5,667,000      5,556,000

6.17 	Sec. 14. REVENUE
 6.18 		Subdivision 1.Total
6.19 	Appropriation                         99,911,000    102,635,000
6.20 	Summary by Fund
6.21 	General              95,869,000    98,593,000
6.22 	Health Care Access    1,654,000     1,654,000
6.23 	Highway User
6.24 	Tax Distribution      2,097,000     2,097,000
6.25 	Environmental           291,000       291,000
6.26 	The amounts that may be spent from this
6.27 	appropriation for each program are
6.28 	specified in the following subdivisions.
6.29 		Subd. 2.Tax System Management
6.30 	83,497,000     85,591,000
6.31 	Summary by Fund
6.32 	General              79,455,000    81,549,000
6.33 	Health Care Access    1,654,000     1,654,000
6.34 	Highway User
6.35 	Tax Distribution      2,097,000     2,097,000
6.36 	Environmental           291,000       291,000
6.37 	$5,096,000 the first year and
6.38 	$6,190,000 the second year are for
6.39 	additional activities to identify and
6.40 	collect tax liabilities from
6.41 	individuals and businesses that
6.42 	currently do not pay all taxes owed.
6.43 	This initiative is expected to result
6.44 	in new general fund revenues of
6.45 	$42,800,000 for the biennium ending
6.46 	June 30, 2007.
7.1 	The department must report to the
7.2 	chairs of the house of representatives
7.3 	Ways and Means and senate Finance
7.4 	Committees by March 1, 2006, and
7.5 	January 15, 2007, on the following
7.6 	performance indicators:
7.7 	(1) the number of corporations
7.8 	noncompliant with the corporate tax
7.9 	system each year and the percentage and
7.10 	dollar amounts of valid tax liabilities
7.11 	collected;
7.12 	(2) the number of businesses
7.13 	noncompliant with the sales and use tax
7.14 	system and the percentage and dollar
7.15 	amount of the valid tax liabilities
7.16 	collected; and
7.17 	(3) the number of individual
7.18 	noncompliant cases resolved and the
7.19 	percentage and dollar amounts of valid
7.20 	tax liabilities collected.
7.21 	The reports must also identify
7.22 	base-level expenditures and staff
7.23 	positions related to compliance and
7.24 	audit activities, including baseline
7.25 	information as of January 1, 2004.  The
7.26 	information must be provided at the
7.27 	budget activity level.
7.28 		Subd. 3.Accounts Receivable Management
7.29 	16,414,000     17,044,000
7.30 	$690,000 the first year and $1,320,000
7.31 	the second year are for additional
7.32 	activities to identify and collect tax
7.33 	liabilities from individuals and
7.34 	businesses that currently do not pay
7.35 	all taxes owed.  This initiative is
7.36 	expected to result in new general
7.37 	revenues of $25,200,000 for the
7.38 	biennium ending June 30, 2007.
7.39 		Subd. 4.Reduction
7.40 	The commissioner of finance must reduce
7.41 	the total appropriation in this section
7.42 	by the amount the commissioner
7.43 	determines was spent on replacement of
7.44 	modular walls in the collection
7.45 	division.  This reduction must be
7.46 	allocated to the collection division.

7.47 	Sec. 15. MILITARY AFFAIRS
 7.48 		Subdivision 1.Total
7.49 	Appropriation                         17,589,000     17,589,000
7.50 	The amounts that may be spent from this
7.51 	appropriation for each program are
7.52 	specified in the following subdivisions.
7.53 		Subd. 2.Maintenance of Training
7.54 	Facilities
7.55 	5,590,000      5,590,000
7.56 		Subd. 3.General Support
8.1 	1,792,000      1,792,000
8.2 	$35,000 each year is to assist in the
8.3 	operation and staffing of the National
8.4 	Guard Youth Camp at Camp Ripley.  This
8.5 	appropriation is contingent on a
8.6 	dollar-for-dollar match from nonstate
8.7 	sources.
8.8 	This appropriation is for fiscal year
8.9 	2006 and fiscal year 2007 only and
8.10 	should not be added to the base.
8.11 		Subd. 4.Enlistment Incentives
8.12 	10,207,000     10,207,000
8.13 	$3,850,000 each year is to provide the
8.14 	additional amount needed for full
8.15 	funding of the tuition reimbursement
8.16 	program in Minnesota Statutes, section
8.17 	192.501, subdivision 2.
8.18 	$1,500,000 each year is for
8.19 	reenlistment bonuses under Minnesota
8.20 	Statutes, section 192.501, subdivision
8.21 	1b.
8.22 	If appropriations for either year of
8.23 	the biennium are insufficient, the
8.24 	appropriation from the other year is
8.25 	available.  The appropriations for
8.26 	enlistment incentives are available
8.27 	until expended.

8.28 	Sec. 16. VETERANS AFFAIRS             4,382,000      4,282,000
 8.29 	$250,000 the first year and $250,000
8.30 	the second year are for outreach to
8.31 	underserved veterans including, but not
8.32 	limited to, veterans of color, female
8.33 	veterans, veterans of limited financial
8.34 	means, and the dependents and survivors
8.35 	of those veterans.  This is a onetime
8.36 	appropriation and must not be added to
8.37 	the base.  The commissioner must report
8.38 	to the legislature by January 15, 2007,
8.39 	on the results of the initiative,
8.40 	including additional federal benefits
8.41 	obtained as a result of the initiative.
8.42 	$100,000 the first year is for grants
8.43 	to provide services to veterans for
8.44 	vocational rehabilitation,
8.45 	developmental disabilities, or chemical
8.46 	dependency.

8.47 	Sec. 17. VETERANS OF FOREIGN
8.48 	WARS                                      85,000         85,000
 8.49 	For carrying out the provisions of Laws
8.50 	1945, chapter 455.

8.51 	Sec. 18. MILITARY ORDER OF
8.52 	THE PURPLE HEART                          25,000         25,000

8.53 	Sec. 19. DISABLED AMERICAN VETERANS      53,000         53,000
 8.54 	For carrying out the provisions of Laws
8.55 	1941, chapter 425.

9.1 	Sec. 20. GAMBLING CONTROL             2,800,000      2,800,000
 9.2 	This appropriation is from the special
9.3 	revenue fund and is made from the
9.4 	lawful gambling regulation account.

9.5 	Sec. 21. RACING COMMISSION              674,000        835,000
 9.6 	(a) This appropriation is from the
9.7 	special revenue fund and is made from
9.8 	the racing and card playing regulation
9.9 	account.
9.10 	(b) $253,000 for the fiscal year ending
9.11 	June 30, 2006, and $414,000 for the
9.12 	fiscal year ending June 30, 2007, are
9.13 	from the racing and card playing
9.14 	regulation account in the special
9.15 	revenue fund.  The Racing Commission
9.16 	must file monthly expenditure reports
9.17 	with the commissioner of finance for
9.18 	money spent from the appropriation in
9.19 	this paragraph.
9.20 	(c) The racing commission may not hire
9.21 	new employees or enter into new
9.22 	contracts with money subject to
9.23 	paragraph (b) before resolution of the
9.24 	petition for judicial review filed by
9.25 	the Columbus Concerned Citizens Group.

9.26 	Sec. 22. STATE LOTTERY
 9.27 	Notwithstanding Minnesota Statutes,
9.28 	section 349A.10, the operating budget
9.29 	must not exceed $26,700,000 in fiscal
9.30 	year 2006 and $27,350,000 in fiscal
9.31 	year 2007 and thereafter.
9.32 	On July 1, 2005, the director of the
9.33 	State Lottery shall transfer unclaimed
9.34 	prize funds in the amount of $2,187,000
9.35 	accumulated prior to July 1, 2003, to
9.36 	the state treasury.  The prize funds,
9.37 	that had not otherwise been
9.38 	transferred, will be credited
9.39 	$1,312,000, or 60 percent, to the
9.40 	general fund and $875,000, or 40
9.41 	percent, to the environment and natural
9.42 	resources trust fund.

9.43 	Sec. 23. TORT CLAIMS                    161,000        161,000
 9.44 	To be spent by the commissioner of
9.45 	finance.
9.46 	If the appropriation for either year is
9.47 	insufficient, the appropriation for the
9.48 	other year is available for it.

9.49 	Sec. 24. MINNESOTA STATE
9.50 	RETIREMENT SYSTEM                      1,176,000      1,205,000
 9.51 	The amounts estimated to be needed for
9.52 	each program are as follows:
9.53 	(a) Legislators
9.54 	783,000        802,000
9.55 	Under Minnesota Statutes, sections
10.1 	3A.03, subdivision 2; 3A.04,
10.2 	subdivisions 3 and 4; and 3A.115.
10.3 	(b) Constitutional Officers
10.4 	393,000        403,000
10.5 	Under Minnesota Statutes, sections
10.6 	352C.031, subdivision 5; 352C.04,
10.7 	subdivision 3; and 352C.09, subdivision
10.8 	2.
10.9 	If an appropriation in this section for
10.10 	either year is insufficient, the
10.11 	appropriation for the other year is
10.12 	available for it.

10.13 	Sec. 25. MINNEAPOLIS EMPLOYEES
10.14 	RETIREMENT FUND                        8,065,000      8,065,000
 10.15 	The amounts estimated to be needed
10.16 	under Minnesota Statutes, section
10.17 	422A.101, subdivision 3.

10.18 	Sec. 26. MINNEAPOLIS TEACHERS
10.19 	RETIREMENT FUND                       15,800,000     15,800,000
 10.20 	The amounts estimated to be needed are
10.21 	as follows:
10.22 	(a) Special direct state aid to first
10.23 	class city teachers retirement funds
10.24 	13,300,000     13,300,000
10.25 	Authorized under Minnesota Statutes,
10.26 	section 354A.12, subdivisions 3a and 3c.
10.27 	(b) Special direct state matching aid
10.28 	to Minneapolis Teachers Retirement Fund
10.29 	2,500,000      2,500,000
10.30 	Authorized under Minnesota Statutes,
10.31 	section 354A.12, subdivision 3b.

10.32 	Sec. 27. ST. PAUL TEACHERS
10.33 	RETIREMENT FUND                        2,967,000      2,967,000
 10.34 	The amounts estimated to be needed for
10.35 	special direct state aid to first class
10.36 	city teachers retirement funds
10.37 	authorized under Minnesota Statutes,
10.38 	section 354A.12, subdivisions 3a and 3c.

10.39 	Sec. 28. COUNCIL ON BLACK
10.40 	MINNESOTANS                              275,000        275,000

10.41 	Sec. 29. COUNCIL ON
10.42 	CHICANO/LATINO AFFAIRS                   268,000        268,000

10.43 	Sec. 30. COUNCIL ON
10.44 	ASIAN-PACIFIC MINNESOTANS                237,000        237,000

10.45 	Sec. 31. SHARED SERVICES ENCOURAGED
 10.46 	During the biennium ending June 30,
10.47 	2007, the Council on Black Minnesotans,
10.48 	the Council on Asian-Pacific
10.49 	Minnesotans, and the Council on Affairs
10.50 	of Chicano/Latino people are encouraged
11.1 	to increase sharing of administrative
11.2 	staff and office space.

11.3 	Sec. 32. INDIAN AFFAIRS
11.4 	COUNCIL                                  470,000        470,000

11.5 	Sec. 33. GENERAL CONTINGENT
11.6 	ACCOUNTS                                 600,000        500,000
 11.7 	Summary by Fund
11.8 	General                 100,000   ...,...,...
11.9 	State Government
11.10 	Special Revenue         400,000       400,000
11.11 	Workers'
11.12 	Compensation            100,000       100,000
11.13 	The appropriations in this section may
11.14 	only be spent with the approval of the
11.15 	governor after consultation with the
11.16 	Legislative Advisory Commission
11.17 	pursuant to Minnesota Statutes, section
11.18 	3.30.
11.19 	If an appropriation in this section for
11.20 	either year is insufficient, the
11.21 	appropriation for the other year is
11.22 	available for it.
11.23 	If a contingent account appropriation
11.24 	is made in one fiscal year, it should
11.25 	be considered a biennial appropriation.

11.26 	Sec. 34. GRANTS
 11.27 	Grants made from appropriations in this
11.28 	act must be divided so that payments
11.29 	are made at least four times each year.

11.30 	Sec. 35. RACING COMMISSION APPROPRIATION
 11.31 	$156,000 is appropriated to the
11.32 	Minnesota Racing Commission from the
11.33 	racing and card playing regulation
11.34 	account in the special revenue fund for
11.35 	the fiscal year ending June 30, 2005.
11.36 	$113,000 of this appropriation is from
11.37 	the interim license fee authorized by
11.38 	Laws 2003, First Special Session
11.39 	chapter 1, article 2, section 69, and
11.40 	is intended to defray the regulatory
11.41 	oversight and legal costs associated
11.42 	with the class A license approved by
11.43 	the commission on January 19, 2005.
11.44 	This appropriation does not cancel, but
11.45 	carries forward into the following
11.46 	fiscal year.  The racing commission may
11.47 	not hire new employees or enter into
11.48 	new contracts with money in this
11.49 	section before resolution of the
11.50 	petition for judicial review filed by
11.51 	the Columbus Concerned Citizens Group.
11.52 	This section is effective the day
11.53 	following final enactment.

11.54 	ARTICLE 2
11.55 	STATE GOVERNMENT OPERATIONS

12.1 	Section 1. Minnesota Statutes 2004, section 3.011, is
12.2 	amended to read:
12.3 	3.011 SESSIONS.
12.4 	The legislature shall meet at the seat of government on the
12.5 	first Tuesday after the first Monday in January of each
12.6 	odd-numbered year.  When the first Monday in January falls on
12.7 	January 1, it shall meet on the first Wednesday after the first
12.8 	Monday. The legislature may not meet in regular session in an
12.9 	even-numbered year before April 1.It shall also meet when
12.10 	called by the governor to meet in special session.

12.11 	Sec. 2. Minnesota Statutes 2004, section 3.012, is amended
12.12 	to read:
12.13 	3.012 LEGISLATIVE DAY.
12.14 	A legislative day is a day when either house of the
12.15 	legislature is called to order or when a standing committee of
12.16 	either house of the legislature meets.  A legislative day begins
12.17 	at seven o'clock a.m. and continues until seven o'clock a.m. of
12.18 	the following calendar day.

12.19 	Sec. 3. [3.194] REVENUE FROM PUBLICATIONS; MEDIA
12.20 	PRODUCTIONS.
12.21 	(a) The house of representatives and the senate must:
12.22 	(1) solicit paid advertising in weekly news magazines
12.23 	published by legislative staff; and 
12.24 	(2) accept donations and solicit sponsorships for media
12.25 	productions that provide the public access to legislative
12.26 	proceedings.
12.27 	(b) The house of representatives and the senate may accept
12.28 	donations for weekly news magazines published by legislative
12.29 	staff.
12.30 	(c) The house of representatives and the senate may solicit
12.31 	advertising in legislative directories published by legislative
12.32 	staff.
12.33 	(d) Revenue received by the house of representatives and
12.34 	senate under this section is appropriated to the house of
12.35 	representatives or the senate, as applicable.

12.36 	Sec. 4. [3.1941] PUBLIC INFORMATION.
13.1 	The house of representatives and the senate must publish a
13.2 	combined schedule of house and senate committee meetings and
13.3 	floor sessions.  The combined schedule must be based on the
13.4 	electronic database-driven schedule system developed by the
13.5 	house of representatives.
13.6 	Any nonpartisan, weekly news magazine providing information
13.7 	to the public about the legislature, the legislative process, or
13.8 	legislative proceedings must be a joint printed publication of
13.9 	the house of representatives and the senate.  Editorial control
13.10 	under this section is the responsibility of the house of
13.11 	representatives.

13.12 	Sec. 5. [3.306] MEETING TIMES.
13.13 	The house of representatives and the senate must adopt
13.14 	rules that set one time as the regular hour of convening daily
13.15 	sessions in both houses.

13.16 	Sec. 6. [3.3061] JOINT STANDING COMMITTEES.
13.17 	The house of representatives and the senate are encouraged
13.18 	to adopt rules that:  (1) establish a system of joint standing
13.19 	committees to consider and report on legislation and conduct
13.20 	other legislative business, except that each house may establish
13.21 	separately a committee on rules and administration and a
13.22 	committee on ethics; or (2) provide that house and senate
13.23 	committees with similar jurisdiction will meet at the same time,
13.24 	to facilitate joint meetings.

13.25 	Sec. 7. [3.3062] WIRELESS INTERNET.
13.26 	If nonstate funds are available, the Legislative
13.27 	Coordinating Commission must establish wireless Internet service
13.28 	in the Capitol building and the State Office Building, and must
13.29 	make this service available to the public.  The commission may
13.30 	establish any necessary security features related to use of this
13.31 	service.

13.32 	Sec. 8. [4.48] FAITH-BASED INITIATIVES.
13.33 	The governor must designate an employee in the governor's
13.34 	office to coordinate faith-based initiatives.

13.35 	Sec. 9. [5.31] STATEWIDE VOTER REGISTRATION SYSTEM.
13.36 	The secretary of state may sell intellectual property
14.1 	rights associated with the statewide voter registration system
14.2 	to other states or to units of local government in other states.

14.3 	Sec. 10. [6.80] RULE AND LAW WAIVER REQUESTS.
14.4 		Subdivision 1.Generally. (a) Except as provided in
14.5 	paragraph (b), a local government unit may request the state
14.6 	auditor to grant a waiver from one or more administrative rules
14.7 	or a temporary, limited exemption from enforcement of state
14.8 	procedural laws governing delivery of services by the local
14.9 	government unit.  Two or more local government units may submit
14.10 	a joint application for a waiver or exemption under this section
14.11 	if they propose to cooperate in providing a service or program
14.12 	that is subject to the rule or law.  Before submitting an
14.13 	application to the state auditor, the governing body of the
14.14 	local government unit must approve, in concept, the proposed
14.15 	waiver or exemption at a meeting required to be public under
14.16 	chapter 13D.  A local government unit or two or more units
14.17 	acting jointly may apply for a waiver or exemption on behalf of
14.18 	a nonprofit organization providing services to clients whose
14.19 	costs are paid by the unit or units.  A waiver or exemption
14.20 	granted to a nonprofit organization under this section applies
14.21 	to services provided to all the organization's clients.
14.22 	(b) A school district that is granted a variance from rules
14.23 	of the commissioner of education under section 122A.163, need
14.24 	not apply for a waiver of those rules under this section.  A
14.25 	school district may not seek a waiver of rules under this
14.26 	section if the commissioner of education has authority to grant
14.27 	a variance to the rules under section 122A.163.  This paragraph
14.28 	does not preclude a school district from being included in a
14.29 	cooperative effort with another local government unit under this
14.30 	section.
14.31 	(c) Before petitioning the State Auditor's Office for an
14.32 	exemption from an administrative rule, the petitioner must have
14.33 	requested and been denied such an exemption from the appropriate
14.34 	agency pursuant to sections 14.055 and 14.056.
14.35 		Subd. 2.Application. A local government unit requesting
14.36 	a waiver of a rule or exemption from enforcement of a law under
15.1 	this section shall present a written application to the state
15.2 	auditor.  The application must include:
15.3 	(1) the name and address of the entity for whom a waiver of
15.4 	a rule or exemption from enforcement of a law is being
15.5 	requested;
15.6 	(2) identification of the service or program at issue;
15.7 	(3) identification of the administrative rule or the law
15.8 	imposing a procedural requirement with respect to which the
15.9 	waiver or exemption is sought;
15.10 	(4) a description of the improved service outcome sought,
15.11 	including an explanation of the effect of the waiver or
15.12 	exemption in accomplishing that outcome, and why that outcome
15.13 	cannot be accomplished under established rules or laws;
15.14 	(5) information on the State Auditor's Office treatment on
15.15 	similar cases;
15.16 	(6) the name, address, and telephone number of any person,
15.17 	business, or other government unit the petitioner knows would be
15.18 	adversely affected by the grant of the petition; and 
15.19 	(7) a signed statement as to the accuracy of the facts
15.20 	presented.
15.21 	A copy of the application must be provided by the requesting
15.22 	local government unit to the exclusive representative certified
15.23 	under section 179A.12 to represent employees who provide the
15.24 	service or program affected by the requested waiver or exemption.
15.25 		Subd. 3.Review process. (a) Upon receipt of an
15.26 	application from a local government unit, the state auditor
15.27 	shall review the application.  The state auditor shall dismiss
15.28 	an application if the application proposes a waiver of rules or
15.29 	exemption from enforcement of laws that would result in due
15.30 	process violations, violations of federal law or the state or
15.31 	federal constitution, or the loss of services to people who are
15.32 	entitled to them.
15.33 	(b) The state auditor shall determine whether a law from
15.34 	which an exemption for enforcement is sought is a procedural
15.35 	law, specifying how a local government unit is to achieve an
15.36 	outcome, rather than a substantive law prescribing the outcome
16.1 	or otherwise establishing policy.  In making its determination,
16.2 	the state auditor shall consider whether the law specifies such
16.3 	requirements as:
16.4 	(1) who must deliver a service;
16.5 	(2) where the service must be delivered;
16.6 	(3) to whom and in what form reports regarding the service
16.7 	must be made; and 
16.8 	(4) how long or how often the service must be made
16.9 	available to a given recipient.
16.10 	(c) If the application is submitted by a local government
16.11 	unit in the metropolitan area or the unit requests a waiver of a
16.12 	rule or temporary, limited exemptions from enforcement of a
16.13 	procedural law over which the Metropolitan Council or a
16.14 	metropolitan agency has jurisdiction, the state auditor shall
16.15 	also transmit a copy of the application to the council for
16.16 	review and comment.  The council shall report its comments to
16.17 	the board within 60 days of the date the application was
16.18 	transmitted to the council.  The council may point out any
16.19 	resources or technical assistance it may be able to provide a
16.20 	local government unit submitting a request under this section.
16.21 	(d) Within 15 days after receipt of the application, the
16.22 	state auditor shall transmit a copy of it to the commissioner of
16.23 	each agency having jurisdiction over a rule or law from which a
16.24 	waiver or exemption is sought.  The agency may mail a notice
16.25 	that it has received an application for a waiver or exemption to
16.26 	all persons who have registered with the agency under section
16.27 	14.14, subdivision 1a, identifying the rule or law from which a
16.28 	waiver or exemption is requested.  If no agency has jurisdiction
16.29 	over the rule or law, the state auditor shall transmit a copy of
16.30 	the application to the attorney general.  The agency shall
16.31 	inform the state auditor of its agreement with or objection to
16.32 	and grounds for objection to the waiver or exemption request
16.33 	within 60 days of the date when the application was transmitted
16.34 	to it.  An agency's failure to do so is considered agreement to
16.35 	the waiver or exemption.  The state auditor shall decide whether
16.36 	to grant a waiver or exemption at the end of the 60-day response
17.1 	period.  Interested persons may submit written comments to the
17.2 	state auditor on the waiver or exemption request up to the end
17.3 	of the 60-day response period.
17.4 	(e) If the exclusive representative of the affected
17.5 	employees of the requesting local government unit objects to the
17.6 	waiver or exemption request, it may inform the state auditor of
17.7 	the objection to and the grounds for the objection to the waiver
17.8 	or exemption request within 60 days of the receipt of the
17.9 	application.
17.10 		Subd. 4.Hearing. If a state agency under subdivision 3,
17.11 	paragraph (d), or the exclusive representative of the affected
17.12 	employees under subdivision 3, paragraph (e), has objected to a
17.13 	waiver or exemption request, the State Auditor's Office shall
17.14 	set a date for a hearing on the applications.  The hearing must
17.15 	be conducted informally at a time and place determined by all
17.16 	parties.  Persons representing the local government unit shall
17.17 	present their case for the waiver or exemption, and persons
17.18 	representing the agency or the exclusive representative of the
17.19 	affected employees shall explain their objection to it.  The
17.20 	state auditor may request additional information from the local
17.21 	government unit or either objecting party.  The state auditor
17.22 	may also request, either before or at the hearing, information
17.23 	or comments from representatives of business, labor, local
17.24 	governments, state agencies, consultants, and members of the
17.25 	public.  If necessary, the hearing may be continued for a later
17.26 	date.  The state auditor may modify the terms of the waiver or
17.27 	exemption request in arriving at the agreement required under
17.28 	subdivision 5.
17.29 		Subd. 5.Conditions of agreements. (a) In determining
17.30 	whether to grant a petition for a waiver of a rule or exemption
17.31 	from enforcement of a law, the state auditor should consider the
17.32 	following factors:
17.33 	(1) whether there is a true and unique impediment under
17.34 	current law to accomplishing the goal of the local government
17.35 	unit;
17.36 	(2) granting the waiver of a rule or exemption from
18.1 	enforcement of law will only change procedural requirements of a
18.2 	local government unit;
18.3 	(3) the purpose of any rule or law that is waived is still
18.4 	being met in another manner;
18.5 	(4) granting the proposed waiver of a rule or exemption
18.6 	from enforcement of a law would result in a more efficient means
18.7 	of providing government services; and 
18.8 	(5) granting the proposed waiver will not have a
18.9 	significant negative impact on other state government, local
18.10 	government units, businesses, or citizens.
18.11 	(b) If the state auditor grants a request for a waiver or
18.12 	exemption, the state auditor and the local government unit shall
18.13 	enter into an agreement providing for the delivery of the
18.14 	service or program that is the subject of the application.  The
18.15 	agreement must specify desired outcomes, the reasons why the
18.16 	desired outcomes cannot be met under current laws or rules, and
18.17 	the means of measurement by which the state auditor will
18.18 	determine whether the outcomes specified in the agreement have
18.19 	been met.  The agreement must specify the duration of the waiver
18.20 	or exemption.  The duration of a waiver from an administrative
18.21 	rule may be for no less than two years and no more than four
18.22 	years, subject to renewal if both parties agree.  An exemption
18.23 	from enforcement of a law terminates ten days after adjournment
18.24 	of the regular legislative session held during the calendar year
18.25 	following the year when the exemption is granted, unless the
18.26 	legislature has acted to extend or make permanent the exemption.
18.27 	(c) The state auditor must report any grants of waivers or
18.28 	exemptions to the legislature, including the chairs of the
18.29 	governmental operations and appropriate policy committees in the
18.30 	house of representatives and senate and the governor within 30
18.31 	days.
18.32 	(d) The state auditor may reconsider or renegotiate the
18.33 	agreement if the rule or law affected by the waiver or exemption
18.34 	is amended or repealed during the term of the original
18.35 	agreement.  A waiver of a rule under this section has the effect
18.36 	of a variance granted by an agency under section 14.055.  A
19.1 	local unit of government that is granted an exemption from
19.2 	enforcement of a procedural requirement in state law under this
19.3 	section is exempt from that law for the duration of the
19.4 	exemption.  The state auditor may require periodic reports from
19.5 	the local government unit or conduct investigations of the
19.6 	service or program.
19.7 		Subd. 6.Enforcement. If the state auditor finds that
19.8 	the local government unit is failing to comply with the terms of
19.9 	the agreement under subdivision 5, the state auditor may rescind
19.10 	the agreement.  Upon the rescission, the local unit of
19.11 	government becomes subject to the rules and laws covered by the
19.12 	agreement.
19.13 		Subd. 7.Access to data. If a local government unit,
19.14 	through a cooperative program under this section, gains access
19.15 	to data collected, created, received, or maintained by another
19.16 	local government that is classified as not public, the unit
19.17 	gaining access is governed by the same restrictions on access to
19.18 	and use of the data as the unit that collected, created,
19.19 	received, or maintained the data.

19.20 	Sec. 11. [8.065] PRIVATE ATTORNEY CONTRACTS.
19.21 	The attorney general may not enter into a contract for
19.22 	legal services in which the fees and expenses paid by the state
19.23 	exceed, or can reasonably be expected to exceed, $1,000,000
19.24 	unless the attorney general first submits the proposed contract
19.25 	to the Legislative Advisory Commission, and waits at least 20
19.26 	days to receive a possible recommendation from the commission.

19.27 	Sec. 12. Minnesota Statutes 2004, section 11A.04, is
19.28 	amended to read:
19.29 	11A.04 DUTIES AND POWERS.
19.30 	The state board shall:
19.31 	(1) Act as trustees for each fund for which it invests or
19.32 	manages money in accordance with the standard of care set forth
19.33 	in section 11A.09 if state assets are involved and in accordance
19.34 	with chapter 356A if pension assets are involved.
19.35 	(2) Formulate policies and procedures deemed necessary and
19.36 	appropriate to carry out its functions.  Procedures adopted by
20.1 	the board must allow fund beneficiaries and members of the
20.2 	public to become informed of proposed board actions.  Procedures
20.3 	and policies of the board are not subject to the Administrative
20.4 	Procedure Act.
20.5 	(3) Employ an executive director as provided in section
20.6 	11A.07.
20.7 	(4) Employ investment advisors and consultants as it deems
20.8 	necessary.
20.9 	(5) Prescribe policies concerning personal investments of
20.10 	all employees of the board to prevent conflicts of interest.
20.11 	(6) Maintain a record of its proceedings.
20.12 	(7) As it deems necessary, establish advisory committees
20.13 	subject to section 15.059 to assist the board in carrying out
20.14 	its duties.
20.15 	(8) Not permit state funds to be used for the underwriting
20.16 	or direct purchase of municipal securities from the issuer or
20.17 	the issuer's agent.
20.18 	(9) Direct the commissioner of finance to sell property
20.19 	other than money that has escheated to the state when the board
20.20 	determines that sale of the property is in the best interest of
20.21 	the state.  Escheated property must be sold to the highest
20.22 	bidder in the manner and upon terms and conditions prescribed by
20.23 	the board.
20.24 	(10) Undertake any other activities necessary to implement
20.25 	the duties and powers set forth in this section.
20.26 	(11) Establish a formula or formulas to measure management
20.27 	performance and return on investment.  Public pension funds in
20.28 	the state shall utilize the formula or formulas developed by the
20.29 	state board.
20.30 	(12) Except as otherwise provided in article XI, section 8,
20.31 	of the Constitution of the state of Minnesota, employ, at its
20.32 	discretion, qualified private firms to invest and manage the
20.33 	assets of funds over which the state board has investment
20.34 	management responsibility.  There is annually appropriated to
20.35 	the state board, from the assets of the funds for which the
20.36 	state board utilizes a private investment manager, sums
21.1 	sufficient to pay the costs of employing private firms.  Each
21.2 	year, by January 15, the board shall report to the governor and
21.3 	legislature on the cost and the investment performance of each
21.4 	investment manager employed by the board.
21.5 	(13) Adopt an investment policy statement that includes
21.6 	investment objectives, asset allocation, and the investment
21.7 	management structure for the retirement fund assets under its
21.8 	control.  The statement may be revised at the discretion of the
21.9 	state board.  The state board shall seek the advice of the
21.10 	council regarding its investment policy statement.  Adoption of
21.11 	the statement is not subject to chapter 14.
21.12 	There is annually appropriated to the state board, from the
21.13 	assets of the funds for which the state board provides
21.14 	investment services, sums sufficient to pay the costs of all
21.15 	necessary expenses for the administration of the board.  These
21.16 	sums will be deposited in the State Board of Investment
21.17 	operating account, which must be established by the commissioner
21.18 	of finance.

21.19 	Sec. 13. Minnesota Statutes 2004, section 11A.07,
21.20 	subdivision 4, is amended to read:
21.21 		Subd. 4.Duties and powers.  The director, at the
21.22 	direction of the state board, shall:
21.23 	(1) plan, direct, coordinate, and execute administrative
21.24 	and investment functions in conformity with the policies and
21.25 	directives of the state board and the requirements of this
21.26 	chapter and of chapter 356A;
21.27 	(2) prepare and submit biennial and annual budgets to the
21.28 	board and with the approval of the board submit the budgets to
21.29 	the Department of Finance;
21.30 	(3) employ professional and clerical staff as is necessary
21.31 	within the complement limits established by the legislature.
21.32 	Employees whose primary responsibility is to invest or manage
21.33 	money or employees who hold positions designated as unclassified
21.34 	under section 43A.08, subdivision 1a, are in the unclassified
21.35 	service of the state.  Other employees are in the classified
21.36 	service;
22.1 	(3) (4) report to the state board on all operations under
22.2 	the director's control and supervision;
22.3 	(4) (5) maintain accurate and complete records of
22.4 	securities transactions and official activities;
22.5 	(5) (6) establish a policy relating to the purchase and
22.6 	sale of securities on the basis of competitive offerings or
22.7 	bids.  The policy is subject to board approval;
22.8 	(6) (7) cause securities acquired to be kept in the custody
22.9 	of the commissioner of finance or other depositories consistent
22.10 	with chapter 356A, as the state board deems appropriate;
22.11 	(7) (8) prepare and file with the director of the
22.12 	Legislative Reference Library, by December 31 of each year, a
22.13 	report summarizing the activities of the state board, the
22.14 	council, and the director during the preceding fiscal year.  The
22.15 	report must be prepared so as to provide the legislature and the
22.16 	people of the state with a clear, comprehensive summary of the
22.17 	portfolio composition, the transactions, the total annual rate
22.18 	of return, and the yield to the state treasury and to each of
22.19 	the funds whose assets are invested by the state board, and the
22.20 	recipients of business placed or commissions allocated among the
22.21 	various commercial banks, investment bankers, and brokerage
22.22 	organizations.  The report must contain financial statements for
22.23 	funds managed by the board prepared in accordance with generally
22.24 	accepted accounting principles;
22.25 	(8) (9) require state officials from any department or
22.26 	agency to produce and provide access to any financial documents
22.27 	the state board deems necessary in the conduct of its investment
22.28 	activities;
22.29 	(9) (10) receive and expend legislative appropriations; and 
22.30 	(10) (11) undertake any other activities necessary to
22.31 	implement the duties and powers set forth in this subdivision
22.32 	consistent with chapter 356A.

22.33 	Sec. 14. Minnesota Statutes 2004, section 11A.07,
22.34 	subdivision 5, is amended to read:
22.35 		Subd. 5.Apportionment of expenses. The executive
22.36 	director shall apportion the actual expenses incurred by the
23.1 	board on an accrual basis among the several funds whose assets
23.2 	are invested by the board based on the weighted average assets
23.3 	under management during each quarter.  The charge to each fund
23.4 	must be calculated, billed, and paid on a quarterly basis in
23.5 	accordance with procedures for interdepartmental payments
23.6 	established by the commissioner of finance.  The amounts
23.7 	necessary to pay these charges are appropriated from the
23.8 	investment earnings of each fund.  Receipts must be credited to
23.9 	the general fund as nondedicated receipts.The annual expenses
23.10 	incurred by the state board will be apportioned among the state
23.11 	general fund, the retirement funds administered by the Minnesota
23.12 	State Retirement System, Public Employees Retirement
23.13 	Association, and Teachers Retirement Association, and all other
23.14 	funds as follows:
23.15 	(1) on a biennial basis, the state board, in accordance
23.16 	with biennial budget procedures established by the commissioner
23.17 	of finance, may request a direct appropriation that represents
23.18 	the portion of the state board's expenses necessary to provide
23.19 	investment services to the state general fund.  This
23.20 	appropriation must be deposited in the State Board of Investment
23.21 	operating account;
23.22 	(2) the executive director shall apportion the actual
23.23 	expenses incurred by the state board, less the charge to the
23.24 	state general fund, among the funds whose assets are invested by
23.25 	the state board, with the exception of the state general fund,
23.26 	based on the weighted average assets under management during the
23.27 	fiscal year.  The amounts necessary to pay these charges are
23.28 	apportioned from the investment earnings of each fund.  Receipts
23.29 	must be credited to the State Board of Investment operating
23.30 	account;
23.31 	(3) the actual expenses apportioned and charged to the
23.32 	funds, with the exception of the state general fund and the
23.33 	retirement funds administered by the Minnesota State Retirement
23.34 	System, Public Employees Retirement Association, and Teachers
23.35 	Retirement Association, must be calculated, billed, and paid on
23.36 	a quarterly basis in accordance with procedures for
24.1 	interdepartmental payments established by the commissioner of
24.2 	finance; and 
24.3 	(4) the annual estimated expenses to be incurred by the
24.4 	state board that will be payable by the retirement funds
24.5 	administered by the Minnesota State Retirement System, Public
24.6 	Employees Retirement Association, and Teachers Retirement
24.7 	Association must be deposited in the State Board of Investment
24.8 	operating account on the first business day of each fiscal
24.9 	year.  A reconciliation of the actual expenses compared to the
24.10 	estimated costs must occur at the end of each fiscal year with
24.11 	any surplus or deficit being credited or debited to each of the
24.12 	respective funds.  The state board must present a statement of
24.13 	accrued actual expenses to each fund at the end of each quarter
24.14 	during each fiscal year.

24.15 	Sec. 15. Minnesota Statutes 2004, section 11A.24,
24.16 	subdivision 6, is amended to read:
24.17 		Subd. 6.Other investments.  (a) In addition to the
24.18 	investments authorized in subdivisions 1 to 5, and subject to
24.19 	the provisions in paragraph (b), the state board may invest
24.20 	funds in:
24.21 	(1) venture capital investment businesses through
24.22 	participation in limited partnerships, trusts, private
24.23 	placements, limited liability corporations, limited liability
24.24 	companies, limited liability partnerships, and corporations;
24.25 	(2) real estate ownership interests or loans secured by
24.26 	mortgages or deeds of trust or shares of real estate investment
24.27 	trusts through investment in limited partnerships, bank
24.28 	sponsored collective funds, trusts, mortgage participation
24.29 	agreements, and insurance company commingled accounts, including
24.30 	separate accounts;
24.31 	(3) regional and mutual funds through bank sponsored
24.32 	collective funds and open-end investment companies registered
24.33 	under the Federal Investment Company Act of 1940, and closed-end
24.34 	mutual funds listed on an exchange regulated by a governmental
24.35 	agency;
24.36 	(4) resource investments through limited partnerships,
25.1 	trusts, private placements, limited liability corporations,
25.2 	limited liability companies, limited liability partnerships, and
25.3 	corporations; and
25.4 	(5) international securities.
25.5 	(b) The investments authorized in paragraph (a) must
25.6 	conform to the following provisions:
25.7 	(1) the aggregate value of all investments made according
25.8 	to paragraph (a), clauses (1) to (4), may not exceed 35 percent
25.9 	of the market value of the fund for which the state board is
25.10 	investing;
25.11 	(2) there must be at least four unrelated owners of the
25.12 	investment other than the state board for investments made under
25.13 	paragraph (a), clause (1), (2), (3), or (4);
25.14 	(3) state board participation in an investment vehicle is
25.15 	limited to 20 percent thereof for investments made under
25.16 	paragraph (a), clause (1), (2), (3), or (4); and
25.17 	(4) state board participation in a limited partnership does
25.18 	not include a general partnership interest or other interest
25.19 	involving general liability.  The state board may not engage in
25.20 	any activity as a limited partner which creates general
25.21 	liability.
25.22 	(c) All financial, business, or proprietary data collected,
25.23 	created, received, or maintained by the state board in
25.24 	connection with investments authorized by paragraph (a), clause
25.25 	(1), (2), or (4), are nonpublic data under section 13.02,
25.26 	subdivision 9.  As used in this paragraph, "financial, business,
25.27 	or proprietary data" means data, as determined by the
25.28 	responsible authority for the state board, that is of a
25.29 	financial, business, or proprietary nature; and the release of
25.30 	which could cause competitive harm to the state board, the legal
25.31 	entity in which the state board has invested or has considered
25.32 	an investment, the managing entity of an investment, or a
25.33 	portfolio company in which the legal entity holds an interest.
25.34 	As used in this section, "business data" is data described in
25.35 	section 13.591, subdivision 1.  Regardless of whether they could
25.36 	be considered financial, business, or proprietary data, the
26.1 	following data received, prepared, used, or retained by the
26.2 	state board in connection with investments authorized by
26.3 	paragraph (a), clause (1), (2), or (4), are public at all times:
26.4 	(1) the name and industry group classification of the legal
26.5 	entity in which the state board has invested or in which the
26.6 	state board has considered an investment;
26.7 	(2) the state board commitment amount, if any;
26.8 	(3) the funded amount of the state board's commitment to
26.9 	date, if any;
26.10 	(4) the market value of the investment by the state board;
26.11 	(5) the state board's internal rate of return for the
26.12 	investment, including expenditures and receipts used in the
26.13 	calculation of the investment's internal rate of return; and 
26.14 	(6) the age of the investment in years.
26.15 	
EFFECTIVE DATE. This section is effective the day
26.16 	following final enactment.

26.17 	Sec. 16. Minnesota Statutes 2004, section 13.635, is
26.18 	amended by adding a subdivision to read:
26.19 		Subd. 1a.State board of investment. Certain government
26.20 	data of the State Board of Investment related to investments are
26.21 	classified under section 11A.24, subdivision 6.

26.22 	Sec. 17. [14.127] LEGISLATIVE APPROVAL REQUIRED.
26.23 		Subdivision 1.Cost thresholds. An agency must determine
26.24 	if the cost of complying with a proposed rule in the first year
26.25 	after the rule takes effect will exceed $15,000 for:  (1) any
26.26 	one business that has less than 50 full-time employees; or (2)
26.27 	any one statutory or home rule charter city that has less than
26.28 	ten full-time employees.  For purposes of this section,
26.29 	"business" means a business entity organized for profit or as a
26.30 	nonprofit, and includes an individual, partnership, corporation,
26.31 	joint venture, association, or cooperative.
26.32 		Subd. 2.Agency determination. An agency must make the
26.33 	determination required by subdivision 1 before the close of the
26.34 	hearing record, or before the agency submits the record to the
26.35 	administrative law judge if there is no hearing.  The
26.36 	administrative law judge must review and approve or disapprove
27.1 	the agency determination under this section.
27.2 		Subd. 3.Legislative approval required. If the agency
27.3 	determines that the cost exceeds the threshold in subdivision 1,
27.4 	or if the administrative law judge disapproves the agency's
27.5 	determination that the cost does not exceed the threshold in
27.6 	subdivision 1, any business that has less than 50 full-time
27.7 	employees or any statutory or home rule charter city that has
27.8 	less than ten full-time employees may file a written statement
27.9 	with the agency claiming a temporary exemption from the rules.
27.10 	Upon filing of such a statement with the agency, the rules do
27.11 	not apply to that business or that city until the rules are
27.12 	approved by a law enacted after the agency determination or
27.13 	administrative law judge disapproval.
27.14 		Subd. 4.Exceptions. (a) Subdivision 3 does not apply if
27.15 	the administrative law judge approves an agency's determination
27.16 	that the legislature has appropriated money to sufficiently fund
27.17 	the expected cost of the rule upon the business or city proposed
27.18 	to be regulated by the rule.
27.19 	(b) Subdivision 3 does not apply if the administrative law
27.20 	judge approves an agency's determination that the rule has been
27.21 	proposed pursuant to a specific federal statutory or regulatory
27.22 	mandate.
27.23 	(c) This section does not apply if the rule is adopted
27.24 	under section 14.388 or under another law specifying that the
27.25 	rulemaking procedures of this chapter do not apply.
27.26 	(d) This section does not apply to a rule adopted by the
27.27 	Public Utilities Commission.
27.28 	(e) Subdivision 3 does not apply if the governor waives
27.29 	application of subdivision 3.  The governor may issue a waiver
27.30 	at any time, either before or after the rule would take effect,
27.31 	but for the requirement of legislative approval.  As soon as
27.32 	possible after issuing a waiver under this paragraph, the
27.33 	governor must send notice of the waiver to the speaker of the
27.34 	house of representatives and the president of the senate and
27.35 	must publish notice of this determination in the State Register.
27.36 		Subd. 5.Severability. If an administrative law judge
28.1 	determines that part of a proposed rule exceeds the threshold
28.2 	specified in subdivision 1, but that a severable portion of a
28.3 	proposed rule does not exceed the threshold in subdivision 1,
28.4 	the administrative law judge may provide that the severable
28.5 	portion of the rule that does not exceed the threshold may take
28.6 	effect without legislative approval.
28.7 	
EFFECTIVE DATE. This section is effective July 1, 2005.
28.8 	This section applies to any rule for which the hearing record
28.9 	has not closed before July 1, 2005, or, if there is no public
28.10 	hearing, for which the agency has not submitted the record to
28.11 	the administrative law judge before that date.

28.12 	Sec. 18. Minnesota Statutes 2004, section 14.19, is
28.13 	amended to read:
28.14 	14.19 DEADLINE TO COMPLETE RULEMAKING.
28.15 	Within 180 days after issuance of the administrative law
28.16 	judge's report or that of the chief administrative law judge,
28.17 	the agency shall submit its notice of adoption, amendment, or
28.18 	repeal to the State Register for publication.  If the agency has
28.19 	not submitted its notice to the State Register within 180 days,
28.20 	the rule is automatically withdrawn.  The agency may not adopt
28.21 	the withdrawn rules without again following the procedures of
28.22 	sections 14.05 to 14.28, with the exception of section 14.101,
28.23 	if the noncompliance is approved by the chief administrative law
28.24 	judge.  The agency shall report to the Legislative Coordinating
28.25 	Commission, other appropriate committees of the legislature, and
28.26 	the governor its failure to adopt rules and the reasons for that
28.27 	failure.  The 180-day time limit of this section does not
28.28 	include:
28.29 	(1) any days used for review by the chief administrative
28.30 	law judge or the commission if the review is required by law; or 
28.31 	(2) days during which the rule cannot be adopted, because
28.32 	of votes by legislative committees under section 14.126; or 
28.33 	(3) days during which the rule cannot be adopted because
28.34 	approval of the legislature is required under section 14.127.

28.35 	Sec. 19. Minnesota Statutes 2004, section 15.054, is
28.36 	amended to read:
29.1 	15.054 PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM
29.2 	GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.
29.3 	No officer or employee of the state or any of its political
29.4 	subdivisions shall sell or procure for sale or possess or
29.5 	control for sale to any other officer or employee of the state
29.6 	or subdivision, as appropriate, any property or materials owned
29.7 	by the state or subdivision except pursuant to conditions
29.8 	provided in this section.  Property or materials owned by the
29.9 	state or a subdivision and not needed for public purposes, may
29.10 	be sold to an employee of the state or subdivision after
29.11 	reasonable public notice at a public auction or by sealed
29.12 	response, if the employee is not directly involved in the
29.13 	auction or process pertaining to the administration and
29.14 	collection of sealed responses.  Requirements for reasonable
29.15 	public notice may be prescribed by other law or ordinance so
29.16 	long as at least one week's published notice is specified.  An
29.17 	employee of the state or a political subdivision may purchase no
29.18 	more than one motor vehicle from the state in any 12-month
29.19 	period at any one auction.  A person violating the provisions of
29.20 	this section is guilty of a misdemeanor.  This section shall not
29.21 	apply to the sale of property or materials acquired or produced
29.22 	by the state or subdivision for sale to the general public in
29.23 	the ordinary course of business.  Nothing in this section shall
29.24 	prohibit an employee of the state or a political subdivision
29.25 	from selling or possessing for sale public property if the sale
29.26 	or possession for sale is in the ordinary course of business or
29.27 	normal course of the employee's duties.

29.28 	Sec. 20. [15.445] NOTIFICATION OF CERTAIN CHANGES TO
29.29 	PROFESSIONAL LICENSURE LAWS AND RULES.
29.30 	An executive agency under section 16A.011, subdivision 12,
29.31 	that issues a professional license must notify all current
29.32 	license holders of any changes made to laws or rules
29.33 	administered by the agency under which a fine or other sanction
29.34 	may be imposed on a noncompliant license holder.  The agency
29.35 	must notify all current license holders of the law or rule
29.36 	changes by mail at their last known addresses on or before the
30.1 	effective date of the changes.

30.2 	Sec. 21. [15.60] PUBLIC SAFETY OFFICERS; AMERICAN FLAG.
30.3 	(a) A public employer may not forbid a peace officer or
30.4 	firefighter from wearing a patch or pin depicting the flag of
30.5 	the United States of America on the employee's uniform,
30.6 	according to customary and standard flag etiquette.  However, a
30.7 	public employer may limit the size of a flag patch worn on a
30.8 	uniform to no more than three inches by five inches.
30.9 	(b) For purposes of this section:
30.10 	(1) "peace officer" has the meaning given in section
30.11 	626.84, subdivision 1, paragraph (c) or (f);
30.12 	(2) "firefighter" means a person as defined in section
30.13 	299A.41, subdivision 4, clause (3) or (4); and 
30.14 	(3) "public employer" has the meaning given in section
30.15 	179A.03, subdivision 15, and also includes a municipal fire
30.16 	department and an independent nonprofit firefighting corporation.
30.17 	(c) A peace officer or firefighter who believes a public
30.18 	employer is violating this section may request the attorney
30.19 	general to issue an opinion on the issue.  Upon such a request,
30.20 	the attorney general must issue a written opinion, which is
30.21 	binding, unless a court makes a contrary decision.  If after
30.22 	issuing an opinion, the attorney general determines that a
30.23 	public employer continues to violate this section, the attorney
30.24 	general may bring an action in district court to compel
30.25 	compliance.

30.26 	Sec. 22. [15.701] SALARY DATA.
30.27 	Every state agency, as defined in section 13.02,
30.28 	subdivision 17, must annually provide notice of the names and
30.29 	salaries of its three highest-paid employees.  This notice may
30.30 	be provided on the home page of the primary Web site maintained
30.31 	by the state agency for a period of not less than 90 consecutive
30.32 	days, in a publication of the state agency that is distributed
30.33 	to residents of the state, or by publication in the State
30.34 	Register.

30.35 	Sec. 23. [15B.055] PARKING SPACES.
30.36 	To provide the public with greater access to legislative
31.1 	proceedings, all parking spaces on Aurora Avenue in front of the
31.2 	Capitol building must be reserved for the public.

31.3 	Sec. 24. Minnesota Statutes 2004, section 15B.17,
31.4 	subdivision 1, is amended to read:
31.5 		Subdivision 1.Public bodies with proposals.  (a) Before
31.6 	a state agency or other public body develops, to submit to the
31.7 	legislature and the governor, a budget proposal or plans for
31.8 	capital improvements within the Capitol Area, it must consult
31.9 	with the board.
31.10 	(b) The public body must provide enough money for the
31.11 	board's review and planning if the board decides its review and
31.12 	planning services are necessary. Money received by the board
31.13 	under this subdivision and under section 15B.13, paragraph (e),
31.14 	is appropriated to the board and does not cancel.

31.15 	Sec. 25. Minnesota Statutes 2004, section 16A.103, is
31.16 	amended by adding a subdivision to read:
31.17 		Subd. 4.Report on expenditure increases. By January 10
31.18 	of an odd-numbered year, the commissioner of finance must report
31.19 	on those programs or components of programs for which
31.20 	expenditures for the next biennium according to the forecast
31.21 	issued the previous November are projected to increase more than
31.22 	15 percent over the expenditures for that program in the current
31.23 	biennium.  The report must include an analysis of the factors
31.24 	that are causing the increases in expenditures.

31.25 	Sec. 26. Minnesota Statutes 2004, section 16A.1286,
31.26 	subdivision 2, is amended to read:
31.27 		Subd. 2.Billing procedures.  The commissioner may bill
31.28 	up to $7,520,000 in each fiscal year for statewide systems
31.29 	services provided to state agencies, judicial branch agencies,
31.30 	the University of Minnesota, the Minnesota State Colleges and
31.31 	Universities, and other entities.  Billing must be based only on
31.32 	usage of services relating to statewide systems provided by the
31.33 	Intertechnologies Division.  Each agency shall transfer from
31.34 	agency operating appropriations to the statewide systems account
31.35 	the amount billed by the commissioner.  Billing policies and
31.36 	procedures related to statewide systems services must be
32.1 	developed by the commissioner in consultation with the
32.2 	commissioners of employee relations and administration, the
32.3 	University of Minnesota, and the Minnesota State Colleges and
32.4 	Universities.

32.5 	Sec. 27. Minnesota Statutes 2004, section 16A.1286,
32.6 	subdivision 3, is amended to read:
32.7 		Subd. 3.Appropriation.  Money transferred into the
32.8 	account is appropriated to the commissioner to pay for statewide
32.9 	systems services during the biennium in which it is appropriated.

32.10 	Sec. 28. Minnesota Statutes 2004, section 16A.152,
32.11 	subdivision 2, is amended to read:
32.12 		Subd. 2.Additional revenues; priority.  (a) If on the
32.13 	basis of a forecast of general fund revenues and expenditures,
32.14 	the commissioner of finance determines that there will be a
32.15 	positive unrestricted budgetary general fund balance at the
32.16 	close of the biennium, the commissioner of finance must allocate
32.17 	money to the following accounts and purposes in priority order:
32.18 	(1) the cash flow account established in subdivision 1
32.19 	until that account reaches $350,000,000;
32.20 	(2) the budget reserve account established in subdivision
32.21 	1a until that account reaches $653,000,000;
32.22 	(3) the amount necessary to increase the aid payment
32.23 	schedule for school district aids and credits payments in
32.24 	section 127A.45 to not more than 90 percent rounded to the
32.25 	nearest tenth of a percent without exceeding the amount
32.26 	available and with any remaining funds deposited in the budget
32.27 	reserve; and
32.28 	(4) the amount necessary to restore all or a portion of the
32.29 	net aid reductions under section 127A.441 and to reduce the
32.30 	property tax revenue recognition shift under section 123B.75,
32.31 	subdivision 5, paragraph (c), and Laws 2003, First Special
32.32 	Session chapter 9, article 5, section 34, as amended by Laws
32.33 	2003, First Special Session chapter 23, section 20, by the same
32.34 	amount.
32.35 	(b) The amounts necessary to meet the requirements of this
32.36 	section are appropriated from the general fund within two weeks
33.1 	after the forecast is released or, in the case of transfers
33.2 	under paragraph (a), clauses (3) and (4), as necessary to meet
33.3 	the appropriations schedules otherwise established in statute.
33.4 	(c) To the extent that a positive unrestricted budgetary
33.5 	general fund balance is projected, appropriations under this
33.6 	section must be made before any transfer is made under section
33.7 	16A.1522 takes effect.
33.8 	(d) The commissioner of finance shall certify the total
33.9 	dollar amount of the reductions under paragraph (a), clauses (3)
33.10 	and (4), to the commissioner of education.  The commissioner of
33.11 	education shall increase the aid payment percentage and reduce
33.12 	the property tax shift percentage by these amounts and apply
33.13 	those reductions to the current fiscal year and thereafter.

33.14 	Sec. 29. Minnesota Statutes 2004, section 16A.1522,
33.15 	subdivision 1, is amended to read:
33.16 		Subdivision 1.Forecast.  If, on the basis of a forecast
33.17 	of general fund revenues and expenditures in November of an
33.18 	even-numbered year or February of an odd-numbered year, the
33.19 	commissioner projects a positive unrestricted budgetary general
33.20 	fund balance at the close of the biennium that exceeds one-half
33.21 	of one percent of total general fund biennial revenues, the
33.22 	commissioner shall designate the entire balance as available for
33.23 	rebate to the taxpayers of this state. In forecasting,
33.24 	projecting, or designating the unrestricted budgetary general
33.25 	fund balance or general fund biennial revenue under this
33.26 	section, the commissioner shall not include any balance or
33.27 	revenue attributable to settlement payments received after July
33.28 	1, 1998, and before July 1, 2001, as defined in Section IIB of
33.29 	the settlement document, filed May 18, 1998, in State v. Philip
33.30 	Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second
33.31 	Judicial District).

33.32 	Sec. 30. [16A.156] LIMIT ON ADMINISTRATIVE COSTS.
33.33 	As a condition of receiving a grant from an appropriation
33.34 	of state funds, the person or entity receiving the grant must
33.35 	agree that no more than ten percent of the grant funds will be
33.36 	spent for administrative purposes.  This limit does not apply if
34.1 	the commissioner of finance determines, after consulting with
34.2 	the chairs of appropriate legislative budget committees, that
34.3 	this limit is impracticable because the legislative intent in
34.4 	appropriating money for the grant is that more than ten percent
34.5 	of the grant is administrative in nature.

34.6 	Sec. 31. Minnesota Statutes 2004, section 16A.281, is
34.7 	amended to read:
34.8 	16A.281 APPROPRIATIONS TO LEGISLATURE.
34.9 	Except as provided in this section, section 16A.28 applies
34.10 	to appropriations made to the legislature, the senate, the house
34.11 	of representatives, or its committees or commissions.  An
34.12 	appropriation made to the legislature, the senate, the house of
34.13 	representatives, or a legislative commission or committee other
34.14 	than a standing committee, if not spent during the first year,
34.15 	may be spent during the second year of a biennium.  An
34.16 	unexpended balance not carried forward and remaining unexpended
34.17 	and unencumbered at the end of a biennium lapses and shall be
34.18 	returned to the fund from which appropriated.  Balances may be
34.19 	carried forward into the next biennium and credited to special
34.20 	accounts to be used only as follows:  (1) for nonrecurring
34.21 	expenditures on investments that enhance efficiency or improve
34.22 	effectiveness; (2) to pay expenses associated with special 
34.23 	sessions, interim activities, public hearings, or other public
34.24 	outreach efforts and related activities; and (3) to pay
34.25 	severance costs of involuntary terminations.  The approval of
34.26 	the commissioner of finance under section 16A.28, subdivision 2,
34.27 	does not apply to the legislature.  An appropriation made to the
34.28 	legislature, the senate, the house of representatives, or a
34.29 	standing committee for all or part of a biennium may be spent in
34.30 	either year of the biennium.

34.31 	Sec. 32. [16A.696] UNIVERSITY OF MINNESOTA AWARD OF
34.32 	CAPITAL IMPROVEMENT CONTRACTS.
34.33 	Notwithstanding any law to the contrary, any appropriation
34.34 	for capital improvement projects for the University of Minnesota
34.35 	is contingent on the University agreeing that contracts for the
34.36 	projects will be awarded under the procedures in sections 16C.25
35.1 	to 16C.28, except that the Board of Regents must perform
35.2 	responsibilities assigned to the commissioner of administration.

35.3 	Sec. 33. [16B.296] TRANSFER OF REAL PROPERTY.
35.4 	Unless otherwise provided by the commissioner, an agency
35.5 	may not sell or otherwise transfer state-owned real property for
35.6 	less than the appraised value, or if the property has not been
35.7 	appraised, for less than the fair market value, as determined by
35.8 	the commissioner.  For purposes of this section, "agency"
35.9 	includes the Minnesota State Colleges and Universities.

35.10 	Sec. 34. Minnesota Statutes 2004, section 16B.52,
35.11 	subdivision 1, is amended to read:
35.12 		Subdivision 1.Permissible publications; pictures. (a) 
35.13 	No elected, administrative, or executive state officer, may have
35.14 	printed, nor may the commissioner authorize the printing of, at
35.15 	government expense, official reports and other publications
35.16 	intended for general public circulation except those authorized
35.17 	by law or included in the intent of the appropriation out of
35.18 	which the cost will be defrayed.
35.19 	(b) A publication printed at government expense by an
35.20 	elected or appointed executive officer must contain only
35.21 	material that provides information about the duties and
35.22 	jurisdiction of the officer or the officer's organization, or
35.23 	facilitates public access to services offered by the officer or
35.24 	organization.  All material in the publication must be directly
35.25 	related to the legal functions, duties, and jurisdiction of the
35.26 	public official or organization.
35.27 	(c) Executive officers shall, before presenting their
35.28 	annual reports and other publications to the commissioner,
35.29 	examine them and exclude from them pictures of elected and
35.30 	administrative officials, and any other pictorial device
35.31 	calculated to or tending to attribute the publication to an
35.32 	individual instead of the department of state government from
35.33 	which it emanates.  All other engravings, maps, drawings and
35.34 	illustrations must be excluded from the reports and
35.35 	publications, except those the executive officers certify when
35.36 	they present the reports for printing to be necessary and to
36.1 	relate entirely to the transaction of the state's business, or
36.2 	to be reasonably required to present for clear understanding the
36.3 	substance of the report.

36.4 	Sec. 35. [16C.061] USED GOODS.
36.5 	When acquiring goods, the commissioner or the agency making
36.6 	the acquisition must consider purchasing used goods if used
36.7 	goods may result in the best value for the purchasing entity.

36.8 	Sec. 36. [16C.064] COST-BENEFIT ANALYSIS.
36.9 	(a) The commissioner or an agency official to whom the
36.10 	commissioner has delegated duties under section 16C.03,
36.11 	subdivision 16, may not approve a contract or purchase of goods
36.12 	or services in an amount greater than $5,000,000 unless a
36.13 	cost-benefit analysis has been completed and shows a positive
36.14 	benefit to the public.  The Management Analysis Division must
36.15 	perform or direct the performance of the analysis.  A
36.16 	cost-benefit analysis must be performed for a project if an
36.17 	aggregation of contracts or purchases for a project exceeds
36.18 	$5,000,000.
36.19 	(b) All cost-benefit analysis documents under this section,
36.20 	including preliminary drafts and notes, are public data.
36.21 	(c) If a cost-benefit analysis does not show a positive
36.22 	benefit to the public, the governor may approve a contract or
36.23 	purchase of goods or services if a cost-effectiveness study had
36.24 	been done that shows the proposed project is the most effective
36.25 	way to provide a necessary public good.
36.26 	(d) This section applies to contracts for goods or services
36.27 	that are expected to have a useful life of more than three
36.28 	years.  This section does not apply for purchase of goods or
36.29 	services for response to a natural disaster if an emergency has
36.30 	been declared by the governor.

36.31 	Sec. 37. Minnesota Statutes 2004, section 16C.10,
36.32 	subdivision 7 is amended to read:
36.33 		Subd. 7.Reverse auction.  (a) For the purpose of this
36.34 	subdivision, "reverse auction" means a purchasing process in
36.35 	which vendors compete to provide goods or engineering design or
36.36 	computer services at the lowest selling price in an open and
37.1 	interactive environment.
37.2 	(b) The provisions of sections 13.591, subdivision 3, and
37.3 	16C.06, subdivision 2, do not apply when the commissioner
37.4 	determines that a reverse auction is the appropriate purchasing
37.5 	process.

37.6 	Sec. 38. [16C.143] ENERGY FORWARD PRICING MECHANISMS.
37.7 		Subdivision 1.Definitions. The following definitions
37.8 	apply in this section:
37.9 	(1) "energy" means natural gas, heating oil, propane, and
37.10 	any other energy source except electricity used in state
37.11 	facilities; and 
37.12 	(2) "forward pricing mechanism" means a contract or
37.13 	financial instrument that obligates a state agency to buy or
37.14 	sell a specified quantity of energy at a future date at a set
37.15 	price.
37.16 		Subd. 2.Authority. Notwithstanding any other law to the
37.17 	contrary, the commissioner may use forward pricing mechanisms
37.18 	for budget risk reduction.
37.19 		Subd. 3.Conditions. Forward pricing mechanism
37.20 	transactions must be made only under the following conditions:
37.21 	(1) the quantity of energy affected by the forward pricing
37.22 	mechanism must not exceed 90 percent of the estimated energy use
37.23 	for the state agency for the same period, which shall not exceed
37.24 	24 months; and 
37.25 	(2) a separate account must be established for each state
37.26 	agency using a forward pricing mechanism.
37.27 		Subd. 4.Written policies and procedures. Before
37.28 	exercising the authority under this section, the commissioner
37.29 	must develop written policies and procedures governing the use
37.30 	of forward pricing mechanisms.
37.31 	
EFFECTIVE DATE. This section is effective the day
37.32 	following final enactment.

37.33 	Sec. 39. Minnesota Statutes 2004, section 16C.144, is
37.34 	amended to read:
37.35 	16C.144 GUARANTEED ENERGY SAVINGS CONTRACTS PROGRAM.
37.36 		Subdivision 1.Definitions. The following definitions
38.1 	apply to this section.
38.2 	(a) "Utility" means electricity, natural gas, or other
38.3 	energy resource, water, and wastewater.
38.4 	(b) "Utility cost savings" means the difference between the
38.5 	utility costs under the precontract conditions and the utility
38.6 	costs after the changes have been made under the contract.  Such
38.7 	savings shall be calculated in comparison to an established
38.8 	baseline of utility costs installation of the utility
38.9 	cost-savings measures pursuant to the guaranteed energy savings
38.10 	agreement and the baseline utility costs after baseline
38.11 	adjustments have been made.
38.12 	(c) "Established baseline" means the precontract utilities,
38.13 	operations, and maintenance costs.
38.14 	(d) "Baseline" means the preagreement utilities,
38.15 	operations, and maintenance costs.
38.16 	(d) "Utility cost-savings measure" means a measure that
38.17 	produces utility cost savings and/or operation and maintenance
38.18 	cost savings.
38.19 	(e) "Operation and maintenance cost savings" means a
38.20 	measurable decrease in difference between operation and
38.21 	maintenance costs after the installation of the utility
38.22 	cost-savings measures pursuant to the guaranteed energy savings
38.23 	agreement and the baseline operation and maintenance costs that
38.24 	is a direct result of the implementation of one or more utility
38.25 	cost-savings measures but does after inflation adjustments have
38.26 	been made.  Operation and maintenance costs savings shall not
38.27 	include savings from in-house staff labor. Such savings shall
38.28 	be calculated in comparison to an established baseline of
38.29 	operation and maintenance costs.
38.30 	(f) "Guaranteed energy savings contract agreement " means a
38.31 	contract an agreement for the evaluation, recommendation, and 
38.32 	installation of one or more utility cost-savings measures that
38.33 	includes the qualified provider's guarantee as required under
38.34 	subdivision 2. The contract must provide that all payments are
38.35 	to be made over time but not to exceed ten years from the date
38.36 	of final installation, and the savings are guaranteed to the
39.1 	extent necessary to make payments for the utility cost-savings
39.2 	measures.
39.3 	(g) "Baseline adjustments" means adjusting the established 
39.4 	utility cost savings baselines in paragraphs (b) and
39.5 	(d) annually for changes in the following variables:
39.6 	(1) utility rates;
39.7 	(2) number of days in the utility billing cycle;
39.8 	(3) square footage of the facility;
39.9 	(4) operational schedule of the facility;
39.10 	(5) facility temperature set points;
39.11 	(6) weather; and
39.12 	(7) amount of equipment or lighting utilized in the
39.13 	facility.
39.14 	(h) "Inflation adjustment" means adjusting the operation
39.15 	and maintenance cost-savings baseline annually for inflation.
39.16 	(i) "Lease purchase contract agreement " means a
39.17 	contract an agreement obligating the state to make regular lease
39.18 	payments to satisfy the lease costs of the utility cost-savings
39.19 	measures until the final payment, after which time the utility
39.20 	cost-savings measures become the sole property of the state of
39.21 	Minnesota.
39.22 	(i) (j) "Qualified provider" means a person or business
39.23 	experienced in the design, implementation, and installation of
39.24 	utility cost-savings measures.
39.25 	(j) (k) "Engineering report" means a report prepared by a
39.26 	professional engineer licensed by the state of Minnesota
39.27 	summarizing estimates of all costs of installations,
39.28 	modifications, or remodeling, including costs of design,
39.29 	engineering, installation, maintenance, repairs, and estimates
39.30 	of the amounts by which utility and operation and maintenance
39.31 	costs will be reduced.
39.32 	(k) (l) "Capital cost avoidance" means money expended by a
39.33 	state agency to pay for utility cost-savings measures with a
39.34 	guaranteed savings contract agreement so long as the measures
39.35 	that are being implemented to achieve the utility, operation,
39.36 	and maintenance cost savings are a significant portion of an
40.1 	overall project as determined by the commissioner.
40.2 	(l) (m) "Guaranteed energy savings contracting program 
40.3 	guidelines" means policies, procedures, and requirements of
40.4 	guaranteed savings contracts agreements established by the
40.5 	Department of Administration upon enacting this legislation.
40.6 		Subd. 2.Guaranteed energy savings contract agreement.
 40.7 	The commissioner may enter into a guaranteed energy savings
40.8 	contract agreement with a qualified provider if:
40.9 	(1) the qualified provider is selected through a
40.10 	competitive process in accordance with the guaranteed energy 
40.11 	savings contracting program guidelines within the Department of
40.12 	Administration;
40.13 	(2) the qualified provider agrees to submit an engineering
40.14 	report prior to the execution of the guaranteed energy savings
40.15 	contract agreement.  The cost of the engineering report may be
40.16 	considered as part of the implementation costs if the
40.17 	commissioner enters into a guaranteed energy savings agreement
40.18 	with the provider;
40.19 	(3) the term of the guaranteed energy savings agreement
40.20 	shall not exceed 15 years from the date of final installation;
40.21 	(4) the commissioner finds that the amount it would spend
40.22 	on the utility cost-savings measures recommended in the
40.23 	engineering report will not exceed the amount to be saved in
40.24 	utility operation and maintenance costs over ten 15 years from
40.25 	the date of implementation of utility cost-savings measures;
40.26 	(4) (5) the qualified provider provides a written guarantee
40.27 	that the annual utility, operation, and maintenance cost savings
40.28 	during the term of the guaranteed energy savings agreement will
40.29 	meet or exceed the costs of the guaranteed savings contract 
40.30 	annual payments due under a lease purchase agreement.  The
40.31 	qualified provider shall reimburse the state for any shortfall
40.32 	of guaranteed utility, operation, and maintenance cost savings;
40.33 	and
40.34 	(5) (6) the qualified provider gives a sufficient bond in
40.35 	accordance with section 574.26 to the commissioner for the
40.36 	faithful implementation and installation of the utility
41.1 	cost-savings measures.
41.2 		Subd. 3.Lease purchase contract agreement. The
41.3 	commissioner may enter into a lease purchase agreement with any
41.4 	party for the implementation of utility cost-savings measures in
41.5 	accordance with an engineering report the guaranteed energy
41.6 	savings agreement.  The implementation costs of the utility
41.7 	cost-savings measures recommended in the engineering report
41.8 	shall not exceed the amount to be saved in utility and operation
41.9 	and maintenance costs over the term of the lease purchase
41.10 	agreement.  The term of the lease purchase agreement shall not
41.11 	exceed ten 15 years from the date of final installation.  The
41.12 	lease is assignable in accordance with terms approved by the
41.13 	commissioner of finance.
41.14 		Subd. 4.Use of capital cost avoidance. The affected
41.15 	state agency may contribute funds for capital cost avoidance for
41.16 	guaranteed energy savings contracts agreements.  Use of capital
41.17 	cost avoidance is subject to the guaranteed energy savings
41.18 	contracting program guidelines within the Department of
41.19 	Administration.
41.20 		Subd. 5.Report. By January 15 of 2005 and 2007, the
41.21 	commissioner of administration shall submit to the commissioner
41.22 	of finance and the chairs of the senate and house of
41.23 	representatives capital investment committees a list of projects
41.24 	in the agency that have been funded using guaranteed energy
41.25 	savings, as outlined in this section, during the preceding
41.26 	biennium.  For each guaranteed energy savings contract agreement 
41.27 	entered into, the commissioner of administration shall contract
41.28 	with an independent third party to evaluate the
41.29 	cost-effectiveness of each utility cost-savings measure
41.30 	implemented to ensure that such measures were the least-cost
41.31 	measures available.  For the purposes of this section,
41.32 	"independent third party" means an entity not affiliated with
41.33 	the qualified provider, that is not involved in creating or
41.34 	providing conservation project services to that provider, and
41.35 	that has expertise (or access to expertise) in energy savings
41.36 	practices.
42.1 		Subd. 6.Contract limits. Contracts may not be entered
42.2 	into after June 30, 2007.
42.3 	
EFFECTIVE DATE. This section is effective the day
42.4 	following final enactment.

42.5 	Sec. 40. Minnesota Statutes 2004, section 16C.16,
42.6 	subdivision 1, is amended to read:
42.7 		Subdivision 1.Small business procurements. (a) The
42.8 	commissioner shall for each fiscal year ensure that small
42.9 	businesses receive at least 25 percent of the value of
42.10 	anticipated total state procurement of goods and services,
42.11 	including printing and construction.  The commissioner shall
42.12 	divide the procurements so designated into contract award units
42.13 	of economically feasible production runs in order to facilitate
42.14 	offers or bids from small businesses.
42.15 	(b) The commissioner must avoid awarding a master contract
42.16 	on an exclusive basis if awarding the contract on that basis
42.17 	excludes small businesses.  When feasible, when entering into a
42.18 	master contract, the commissioner must attempt to negotiate
42.19 	contract terms that allow agencies the option of purchasing from
42.20 	small businesses, particularly small businesses that are
42.21 	geographically proximate to the entity making the purchase.
42.22 	(c) In making the annual designation of such procurements
42.23 	the commissioner shall attempt (1) to vary the included
42.24 	procurements so that a variety of goods and services produced by
42.25 	different small businesses are obtained each year, and (2) to
42.26 	designate small business procurements in a manner that will
42.27 	encourage proportional distribution of such awards among the
42.28 	geographical regions of the state.  To promote the geographical
42.29 	distribution of awards, the commissioner may designate a portion
42.30 	of the small business procurement for award to bidders from a
42.31 	specified congressional district or other geographical region
42.32 	specified by the commissioner.  The failure of the commissioner
42.33 	to designate particular procurements shall not be deemed to
42.34 	prohibit or discourage small businesses from seeking the
42.35 	procurement award through the normal process.

42.36 	Sec. 41. Minnesota Statutes 2004, section 16C.16, is
43.1 	amended by adding a subdivision to read:
43.2 		Subd. 7a.Vehicle purchases. For purposes of state
43.3 	purchasing, the commissioner may award a bid preference to motor
43.4 	vehicles manufactured in Minnesota.  The amount of the
43.5 	preference must be the same as the amount of the preference
43.6 	awarded to businesses located in an economically disadvantaged
43.7 	area.

43.8 	Sec. 42. Minnesota Statutes 2004, section 16C.23, is
43.9 	amended by adding a subdivision to read:
43.10 		Subd. 6a.Computers for schools. The commissioner may
43.11 	transfer state surplus computers to Minnesota Computers for
43.12 	Schools for refurbishing and distribution to any school, school
43.13 	system, college, or university in Minnesota.

43.14 	Sec. 43. [16C.231] SURPLUS PROPERTY.
43.15 	Notwithstanding any law to the contrary, the commissioner
43.16 	may sell a surplus gun used by a state trooper to the trooper
43.17 	who used the gun in the course of employment.  The sale price
43.18 	must be the fair market value of the gun, as determined by the
43.19 	commissioner.

43.20 	Sec. 44. Minnesota Statutes 2004, section 240A.02,
43.21 	subdivision 3, is amended to read:
43.22 		Subd. 3.Staff.  The commission governor shall appoint an
43.23 	executive director, who serves at the pleasure of the governor.
43.24 	The executive director may hire other employees authorized by
43.25 	the commission.  The executive director is in the unclassified
43.26 	service under section 43A.08.

43.27 	Sec. 45. [298.215] IRON RANGE RESOURCES AND
43.28 	REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM
43.29 	AUTHORIZATION.
43.30 	(a) Notwithstanding any law to the contrary, the
43.31 	commissioner of iron range resources and rehabilitation, in
43.32 	consultation with the commissioner of employee relations, may
43.33 	offer a targeted early separation incentive program for
43.34 	employees of the commissioner who have attained the age of 60
43.35 	years and have at least five years of allowable service credit
43.36 	under chapter 352, or who have received credit for at least 30
44.1 	years of allowable service under the provisions of chapter 352.
44.2 	(b) The early separation incentive program may include one
44.3 	or more of the following:
44.4 	(1) employer-paid postseparation health, medical, and
44.5 	dental insurance until age 65; and 
44.6 	(2) cash incentives that may, but are not required to be,
44.7 	used to purchase additional years of service credit through the
44.8 	Minnesota State Retirement System, to the extent that the
44.9 	purchases are otherwise authorized by law.
44.10 	(c) The commissioner of iron range resources and
44.11 	rehabilitation shall establish eligibility requirements for
44.12 	employees to receive an incentive.
44.13 	(d) The commissioner of iron range resources and
44.14 	rehabilitation, consistent with the established program
44.15 	provisions under paragraph (b), and with the eligibility
44.16 	requirements under paragraph (c), may designate specific
44.17 	programs or employees as eligible to be offered the incentive
44.18 	program.
44.19 	(e) Acceptance of the offered incentive must be voluntary
44.20 	on the part of the employee and must be in writing.  The
44.21 	incentive may only be offered at the sole discretion of the
44.22 	commissioner of iron range resources and rehabilitation.
44.23 	(f) The cost of the incentive is payable solely by funds
44.24 	made available to the commissioner of iron range resources and
44.25 	rehabilitation by law, but only on prior approval of the
44.26 	expenditures by a majority of the Iron Range Resources and
44.27 	Rehabilitation Board.
44.28 	(g) This section and section 298.216 are repealed June 30,
44.29 	2006.

44.30 	EFFECTIVE DATE. This section is effective the day
44.31 	following final enactment.

44.32 	Sec. 46. [298.216] APPLICATION OF OTHER LAWS.
44.33 	Unilateral implementation of section 298.215 by the
44.34 	commissioner of iron range resources and rehabilitation is not
44.35 	an unfair labor practice under chapter 179A.

44.36 	Sec. 47. Minnesota Statutes 2004, section 471.345, is
45.1 	amended by adding a subdivision to read:
45.2 		Subd. 19.Used supplies, materials, and equipment. When
45.3 	acquiring supplies, materials, or equipment, a municipality must
45.4 	consider purchasing used goods if used goods may result in the
45.5 	best value for the municipality.

45.6 	Sec. 48. [471.661] OUT-OF-STATE TRAVEL.
45.7 	No elected official of a statutory or home rule charter
45.8 	city, county, town, school district, regional agency, or other
45.9 	political subdivision of the state may incur more than $1,000 in
45.10 	publicly paid costs for a trip outside of Minnesota unless the
45.11 	costs are approved by a roll-call vote at a public meeting of
45.12 	the governing board held before the trip.

45.13 	Sec. 49. [471.701] SALARY DATA.
45.14 	A city or county with a population of more than 15,000 must
45.15 	annually notify its residents of the names and salaries of its
45.16 	three highest-paid employees.  This notice may be provided on
45.17 	the homepage of the primary Web site maintained by the political
45.18 	subdivision for a period of not less than 90 consecutive days,
45.19 	in a publication of the political subdivision that is
45.20 	distributed to all residents in the political subdivision, or as
45.21 	part of the annual notice of proposed property taxes prepared
45.22 	under section 275.065.

45.23 	Sec. 50. BUILDING LEASE.
 45.24 	Notwithstanding any provision of Minnesota Statutes,
45.25 	section 16B.24, or other law or rule to the contrary, the
45.26 	commissioner of administration may, without approval of the
45.27 	State Executive Council, enter into a lease of up to ten years
45.28 	with a private tenant for use of the state-owned building at 168
45.29 	Aurora Avenue in the city of St. Paul as a child care and
45.30 	after-school activity facility.  If leased to a faith-based
45.31 	organization, the program may not promote any particular faith
45.32 	and must operate in a nondiscriminatory manner.

45.33 	EFFECTIVE DATE. This section is effective the day
45.34 	following final enactment.

45.35 	Sec. 51. SALE OF STATE LAND.
 45.36 		Subdivision 1.State land sales. The commissioner of
46.1 	administration shall coordinate with the head of each department
46.2 	or agency having control of state-owned land to identify and
46.3 	sell at least $6,440,000 of state-owned land.  Sales should be
46.4 	completed according to law and as provided in this section as
46.5 	soon as practicable but no later than June 30, 2007.
46.6 	Notwithstanding Minnesota Statutes, sections 16B.281 and
46.7 	16B.282, 94.09 and 94.10, or any other law to the contrary, the
46.8 	commissioner may offer land for public sale by only providing
46.9 	notice of lands or an offer of sale of lands to state
46.10 	departments or agencies, the University of Minnesota, cities,
46.11 	counties, towns, school districts, or other public entities.
46.12 		Subd. 2.Anticipated savings. Notwithstanding Minnesota
46.13 	Statutes, section 94.16, subdivision 3, or other law to the
46.14 	contrary, the amount of the proceeds from the sale of land under
46.15 	this section that exceeds the actual expenses of selling the
46.16 	land must be deposited in the general fund, except as otherwise
46.17 	provided by the commissioner of finance.  Notwithstanding
46.18 	Minnesota Statutes, section 94.11 or 16B.283, the commissioner
46.19 	of finance may establish the timing of payments for land
46.20 	purchased under this section.  If the total of all money
46.21 	deposited into the general fund from the proceeds of the sale of
46.22 	land under this section is anticipated to be less than
46.23 	$6,440,000, the governor must allocate the amount of the
46.24 	difference as reductions to general fund operating expenditures
46.25 	for other executive agencies for the biennium ending June 30,
46.26 	2007.
46.27 		Subd. 3.Sale of state lands revolving loan
46.28 	fund. $290,000 is appropriated from the general fund in fiscal
46.29 	year 2006 to the commissioner of administration for purposes of
46.30 	paying the actual expenses of selling state-owned lands to
46.31 	achieve the anticipated savings required in this section.  From
46.32 	the gross proceeds of land sales under this section, the
46.33 	commissioner of administration must cancel the amount of the
46.34 	appropriation in this subdivision to the general fund by June
46.35 	30, 2007.

46.36 	Sec. 52. STUDY OF STATE VEHICLES.
 47.1 	The commissioner of administration must issue a request for
47.2 	proposal seeking a private entity to conduct an independent
47.3 	study of all light vehicles owned by executive branch agencies,
47.4 	including constitutional offices but not the Minnesota State
47.5 	Colleges and Universities.  The study must include:
47.6 	(1) an inventory of state-owned vehicles, detailing the
47.7 	type and model of each vehicle, the primary location of each
47.8 	vehicle, and the primary agency to which each vehicle is
47.9 	assigned;
47.10 	(2) the cost to the state of purchasing, maintaining, and
47.11 	operating various types of state-owned vehicles; and 
47.12 	(3) an evaluation of the desirability of centralizing the
47.13 	responsibility for state fleet management in an office of fleet
47.14 	management within the Department of Administration.
47.15 	The contractor must report the results of the study to the
47.16 	legislature by January 15, 2006.

47.17 	Sec. 53. REQUEST FOR PROPOSAL; VEHICLES.
 47.18 	If the commissioner determines it would be in the best
47.19 	interests of the state, the commissioner of administration must
47.20 	issue a request for proposal, seeking a private entity to assume
47.21 	responsibility for maintenance and management of all vehicles
47.22 	owned by executive branch agencies.  For purposes of this
47.23 	section, "executive branch agencies" includes constitutional
47.24 	offices, but not the Minnesota State Colleges and Universities.
47.25 	The commissioner may expand the scope of the request for
47.26 	proposal to include private ownership of some or all of the
47.27 	state vehicles covered by this section.

47.28 	Sec. 54. REQUEST FOR PROPOSAL; FORD BUILDING.
 47.29 	The commissioner of administration must issue a request for
47.30 	proposal, seeking a private entity to lease the Ford Building at
47.31 	117 University Avenue in St. Paul.  Notwithstanding any law to
47.32 	the contrary, the lease may be for a term of up to 20 years.
47.33 	The lease documents must provide that the tenant may not tear
47.34 	down the building and may not alter the historic features of the
47.35 	facade of the building.

47.36 	Sec. 55. REQUEST FOR PROPOSAL; REAL ESTATE.
 48.1 	By October 1, 2005, the commissioner of administration must
48.2 	issue a request for proposal, seeking a private entity to
48.3 	assume, at no cost to the state, some or all of the
48.4 	commissioner's responsibilities for providing real estate
48.5 	management services to state agencies, including leasing
48.6 	state-owned space under custodial control of the Department of
48.7 	Administration to state agencies, arranging for leases of
48.8 	non-state-owned space on behalf of state agencies, relocation of
48.9 	state agencies, and sale and rental of state-owned property to
48.10 	others.  Notwithstanding any law to the contrary, the
48.11 	commissioner may enter into a contract with a private entity to
48.12 	provide these services, beginning no later than July 1, 2006.

48.13 	Sec. 56. TRAINING SERVICES.
 48.14 	During the biennium ending June 30, 2007, state executive
48.15 	agencies must consider using services provided by the Government
48.16 	Training Services before contracting with other outside vendors
48.17 	for similar services.

48.18 	Sec. 57. ASSESSMENT OF PUBLIC ACCESS TO INTERNET-BASED
48.19 	GOVERNMENT INFORMATION.
 48.20 	The commissioner of administration, in partnership with an
48.21 	institution or institutions of higher education located in
48.22 	Minnesota, shall assess public access to Internet-based
48.23 	governmental information and applications and the availability
48.24 	of Internet access for citizens to perform other Internet-based
48.25 	activities such as applying for jobs or citizenship, college
48.26 	entrance scholarships, and other activities that promote
48.27 	self-sufficiency and civic participation.  The commissioner
48.28 	shall report the results to the legislature by August 1, 2006.

48.29 	Sec. 58. STUDY OF WATER AND SEWER BILLING.
 48.30 	The League of Minnesota Cities is requested to convene a
48.31 	working group to study issues relating to collection of
48.32 	delinquent water and sewer bills from owners, lessees, and
48.33 	occupants of rental property.  The working group should include
48.34 	representatives of cities, owners of rental property, municipal
48.35 	utilities, and tenants.  The working group is requested to
48.36 	report its findings and recommendations to the legislature by
49.1 	January 15, 2006.

49.2 	Sec. 59. PORTRAITS.
 49.3 	The Capitol Area Architectural and Planning Board, in
49.4 	consultation with the Minnesota Historical Society, must request
49.5 	the Smithsonian Institution to extend the period during which
49.6 	the portraits of Julie Finch Gilbert and Cass Gilbert are
49.7 	displayed in the Capitol building.  In negotiating an extension
49.8 	of the loan period, the board must request that the portraits
49.9 	remain on display in the Capitol when they are not being
49.10 	publicly displayed elsewhere, but must recognize that it is
49.11 	desirable for the portraits to be displayed in other buildings
49.12 	designed by Cass Gilbert, in conjunction with centennial
49.13 	celebrations for those buildings.

49.14 	Sec. 60. COYA KNUTSON MEMORIALS.
 49.15 	The commissioner of administration shall establish
49.16 	memorials in the Capitol building and in the city of Oklee
49.17 	honoring Coya Knutson, who:
49.18 	(1) served two terms in the Minnesota House of
49.19 	Representatives, representing Red Lake, Pennington, and
49.20 	Clearwater Counties;
49.21 	(2) was elected to the United States House of
49.22 	Representatives in 1954, becoming the first woman elected from
49.23 	Minnesota to the United States Congress;
49.24 	(3) was reelected to Congress in 1956; and 
49.25 	(4) died on October 10, 1996.
49.26 	With respect to the memorial in the Capitol building, the
49.27 	commissioner, with the assistance and approval of the Capitol
49.28 	Area Architectural and Planning Board, shall select an
49.29 	appropriate site, establish design criteria, choose a design,
49.30 	and supervise construction.  With respect to the memorial in
49.31 	Oklee, the commissioner shall request the governing body of the
49.32 	city of Oklee to designate an appropriate site and, in
49.33 	consultation with the governing body, establish design criteria,
49.34 	choose a design, and supervise construction.

49.35 	Sec. 61. REPEALER.
 49.36 	Minnesota Statutes 2004, sections 16A.151, subdivision 5;
50.1 	16A.30; and 240A.08, are repealed.  Minnesota Statutes 2004,
50.2 	section 16B.33, is repealed June 30, 2007.

50.3 	ARTICLE 3
50.4 	PUBLIC EMPLOYMENT

50.5 	Section 1. Minnesota Statutes 2004, section 43A.23,
50.6 	subdivision 1, is amended to read:
50.7 		Subdivision 1.General.  The commissioner is authorized
50.8 	to request bids from carriers or to negotiate with carriers and
50.9 	to enter into contracts with carriers parties which in the
50.10 	judgment of the commissioner are best qualified to underwrite
50.11 	and provide service to the benefit plans.  Contracts entered
50.12 	into with carriers are not subject to the requirements of
50.13 	sections 16C.16 to 16C.19.  The commissioner may negotiate
50.14 	premium rates and coverage provisions with all carriers licensed
50.15 	under chapters 62A, 62C, and 62D.  The commissioner may also
50.16 	negotiate reasonable restrictions to be applied to all carriers
50.17 	under chapters 62A, 62C, and 62D.  Contracts to underwrite the
50.18 	benefit plans must be bid or negotiated separately from
50.19 	contracts to service the benefit plans, which may be awarded
50.20 	only on the basis of competitive bids.  The commissioner shall
50.21 	consider the cost of the plans, conversion options relating to
50.22 	the contracts, service capabilities, character, financial
50.23 	position, and reputation of the carriers, and any other factors
50.24 	which the commissioner deems appropriate.  Each benefit contract
50.25 	must be for a uniform term of at least one year, but may be made
50.26 	automatically renewable from term to term in the absence of
50.27 	notice of termination by either party. The commissioner shall,
50.28 	to the extent feasible, make hospital and medical benefits
50.29 	available from at least one carrier licensed to do business
50.30 	pursuant to each of chapters 62A, 62C, and 62D.  The
50.31 	commissioner need not provide health maintenance organization
50.32 	services to an employee who resides in an area which is not
50.33 	served by a licensed health maintenance organization.  The
50.34 	commissioner may refuse to allow a health maintenance
50.35 	organization to continue as a carrier.  The commissioner may
50.36 	elect not to offer all three types of carriers if there are no
51.1 	bids or no acceptable bids by that type of carrier or if the
51.2 	offering of additional carriers would result in substantial
51.3 	additional administrative costs.A carrier licensed under
51.4 	chapter 62A is exempt from the taxes imposed by chapter 297I on
51.5 	premiums paid to it by the state.
51.6 	All self-insured hospital and medical service products must
51.7 	comply with coverage mandates, data reporting, and consumer
51.8 	protection requirements applicable to the licensed carrier
51.9 	administering the product, had the product been insured,
51.10 	including chapters 62J, 62M, and 62Q.  Any self-insured products
51.11 	that limit coverage to a network of providers or provide
51.12 	different levels of coverage between network and nonnetwork
51.13 	providers shall comply with section 62D.123 and geographic
51.14 	access standards for health maintenance organizations adopted by
51.15 	the commissioner of health in rule under chapter 62D.

51.16 	Sec. 2. [43A.346] POSTRETIREMENT OPTION.
51.17 		Subdivision 1.Definition. For purposes of this section,
51.18 	"employee" means a person currently occupying a civil service
51.19 	position in the executive branch of state government, the
51.20 	Minnesota State Retirement System, or the Office of the
51.21 	Legislative Auditor, or a person employed by the Metropolitan
51.22 	Council.
51.23 		Subd. 2.Eligibility. This section applies to a state or
51.24 	Metropolitan Council employee who:
51.25 	(1) for at least the five years immediately preceding
51.26 	separation under clause (2), has been regularly scheduled to
51.27 	work 1,044 or more hours per year in a position covered by a
51.28 	pension plan administered by the Minnesota State Retirement
51.29 	System or the Public Employees Retirement Association;
51.30 	(2) terminates state or Metropolitan Council employment;
51.31 	(3) at the time of termination under clause (2), meets the
51.32 	age and service requirements necessary to receive an unreduced
51.33 	retirement annuity from the plan and satisfies requirements for
51.34 	the commencement of the retirement annuity or, for an employee
51.35 	under the unclassified employees retirement plan, meets the age
51.36 	and service requirements necessary to receive an unreduced
52.1 	retirement annuity from the plan and satisfies requirements for
52.2 	the commencement of the retirement annuity or elects a lump-sum
52.3 	payment; and 
52.4 	(4) agrees to accept a postretirement option position with
52.5 	the same or a different appointing authority, working a reduced
52.6 	schedule that is both (i) a reduction of at least 25 percent
52.7 	from the employee's number of regularly scheduled work hours;
52.8 	and (ii) 1,044 hours or less in state or Metropolitan Council
52.9 	service.
52.10 		Subd. 3.Unclassified service. Notwithstanding any law
52.11 	to the contrary, state postretirement option positions shall be
52.12 	in the unclassified service but shall not be covered by the
52.13 	Minnesota State Retirement System unclassified employees plan.
52.14 		Subd. 4.Annuity reduction not applicable.
 52.15 	Notwithstanding any law to the contrary, when an eligible state
52.16 	employee in a postretirement option position under this section
52.17 	commences receipt of the annuity, the provisions of section
52.18 	352.115, subdivision 10, or 353.37 governing annuities of
52.19 	reemployed annuitants, shall not apply for the duration of
52.20 	employment in the position.
52.21 		Subd. 5.Appointing authority discretion. The appointing
52.22 	authority has sole discretion to determine if and the extent to
52.23 	which a postretirement option position under this section is
52.24 	available to a state employee.  Any offer of such a position
52.25 	must be made in writing to the employee by the appointing
52.26 	authority on a form prescribed by the Department of Employee
52.27 	Relations and the Minnesota State Retirement System or the
52.28 	Public Employees Retirement Association.  The appointing
52.29 	authority may not require a person to waive any rights under a
52.30 	collective bargaining agreement or unrepresented employee
52.31 	compensation plan as a condition of participation.
52.32 		Subd. 6.Duration. Postretirement option employment
52.33 	shall be for an initial period not to exceed one year.  During
52.34 	that period, the appointing authority may not modify the
52.35 	conditions specified in the written offer without the employee's
52.36 	agreement, except as required by law or by the collective
53.1 	bargaining agreement or compensation plan applicable to the
53.2 	employee.  At the end of the initial period, the appointing
53.3 	authority has sole discretion to determine if the offer of a
53.4 	postretirement option position will be renewed, renewed with
53.5 	modifications, or terminated.  Postretirement option employment
53.6 	may be renewed for periods of up to one year, not to exceed a
53.7 	total duration of five years.  No person shall be employed in
53.8 	one or a combination of postretirement option positions under
53.9 	this section for a total of more than five years.
53.10 		Subd. 7.Copy to fund. The appointing authority shall
53.11 	provide the Minnesota State Retirement System or the Public
53.12 	Employees Retirement Association with a copy of the offer, the
53.13 	employee's acceptance of the terms, and any subsequent renewal
53.14 	agreement.
53.15 		Subd. 8.No service credit. Notwithstanding any law to
53.16 	the contrary, a person may not earn service credit in the
53.17 	Minnesota State Retirement System or the Public Employees
53.18 	Retirement Association for employment covered under this
53.19 	section, and employer contributions and payroll deductions for
53.20 	the retirement fund must not be made based on earnings of a
53.21 	person working under this section.  No change shall be made to a
53.22 	monthly annuity or retirement allowance based on employment
53.23 	under this section.
53.24 		Subd. 9.Insurance contribution. Notwithstanding any law
53.25 	to the contrary, the appointing authority must make an employer
53.26 	insurance contribution for a person who is employed in a
53.27 	postretirement option position under this section and who is not
53.28 	receiving any other state-paid or Metropolitan Council-paid
53.29 	employer insurance contribution.  The amount of the contribution
53.30 	must be equal to the percent time worked in the postretirement
53.31 	option position (hours scheduled to be worked annually divided
53.32 	by 2,088) times 1.5 times the full employer contribution for
53.33 	employee-only health and dental coverage.  The appointing
53.34 	authority must contribute that amount to a health reimbursement
53.35 	arrangement.
53.36 		Subd. 10.Subsequent employment. If a person has been in
54.1 	a postretirement option position and accepts any other position
54.2 	in state or Metropolitan Council-paid service, in the subsequent
54.3 	state or Metropolitan Council-paid employment the person may not
54.4 	earn service credit in the Minnesota State Retirement System or
54.5 	Public Employees Retirement Association, no employer
54.6 	contributions or payroll deductions for the retirement fund
54.7 	shall be made, and the provisions of section 352.115,
54.8 	subdivision 10, or section 353.37, shall apply.

54.9 	Sec. 3. VOLUNTARY UNPAID LEAVE OF ABSENCE.
 54.10 	(a) Appointing authorities in state government may allow
54.11 	each employee to take unpaid leaves of absence for up to 1,040
54.12 	hours between July 1, 2005, and June 30, 2007.  Each appointing
54.13 	authority approving such a leave shall allow the employee to
54.14 	continue accruing vacation and sick leave, be eligible for paid
54.15 	holidays and insurance benefits, accrue seniority, and, if
54.16 	payments are made under paragraph (b), accrue service credit and
54.17 	credited salary in the state retirement plans as if the employee
54.18 	had actually been employed during the time of leave.  An
54.19 	employee covered by the unclassified plan may voluntarily make
54.20 	the employee contributions to the unclassified plan during the
54.21 	leave of absence.  If the employee makes these contributions,
54.22 	the appointing authority must make the employer contribution.
54.23 	If the leave of absence is for one full pay period or longer,
54.24 	any holiday pay shall be included in the first payroll warrant
54.25 	after return from the leave of absence.  The appointing
54.26 	authority shall attempt to grant requests for the unpaid leaves
54.27 	of absence consistent with the need to continue efficient
54.28 	operation of the agency.  However, each appointing authority
54.29 	shall retain discretion to grant or refuse to grant requests for
54.30 	leaves of absence and to schedule and cancel leaves, subject to
54.31 	the applicable provisions of collective bargaining agreements
54.32 	and compensation plans.
54.33 	(b) To receive eligible service credit and credited salary
54.34 	in a defined benefit plan, the member shall pay an amount equal
54.35 	to the applicable employee contribution rates.  If an employee
54.36 	pays the employee contribution for the period of the leave under
55.1 	this section, the appointing authority must pay the employer
55.2 	contribution.  The appointing authority may, at its discretion,
55.3 	pay the employee contributions.  Contributions must be made in a
55.4 	time and manner prescribed by the executive director of the
55.5 	applicable pension plan.

55.6 	EFFECTIVE DATE. This section is effective the day
55.7 	following final enactment.

55.8 	Sec. 4. LABOR AGREEMENTS AND COMPENSATION PLANS.
 55.9 		Subdivision 1.American federation of state, county, and
55.10 	municipal employees. The arbitration award and labor agreement
55.11 	between the state of Minnesota and the American Federation of
55.12 	State, County, and Municipal Employees, unit 8, approved by the
55.13 	Legislative Coordinating Commission Subcommittee on Employee
55.14 	Relations on June 14, 2004, is ratified.
55.15 		Subd. 2.Minnesota law enforcement association;
55.16 	arbitration award. The arbitration award between the state of
55.17 	Minnesota and the Minnesota Law Enforcement Association,
55.18 	approved by the Legislative Coordinating Commission Subcommittee
55.19 	on Employee Relations on June 14, 2004, is ratified.
55.20 		Subd. 3.Higher education services office; compensation
55.21 	plan. The compensation plan for unrepresented employees of the
55.22 	Higher Education Services Office, approved by the Legislative
55.23 	Coordinating Commission Subcommittee on Employee Relations on
55.24 	June 14, 2004, is ratified.
55.25 		Subd. 4.Minnesota law enforcement association;
55.26 	bargaining agreement. The collective bargaining agreement
55.27 	between the state of Minnesota and the Minnesota Law Enforcement
55.28 	Association, submitted to the Legislative Coordinating
55.29 	Commission Subcommittee on Employee Relations on September 29,
55.30 	2004, and implemented after 30 days on October 30, 2004, is
55.31 	ratified.
55.32 		Subd. 5.Inter faculty organization. The collective
55.33 	bargaining agreement between the state of Minnesota and the
55.34 	Inter Faculty Organization, submitted to the Legislative
55.35 	Coordinating Commission Subcommittee on Employee Relations on
55.36 	September 29, 2004, and implemented after 30 days on October 29,
56.1 	2004, is ratified.
56.2 		Subd. 6.Minnesota nurses association. The arbitration
56.3 	award and the collective bargaining agreement between the state
56.4 	of Minnesota and the Minnesota Nurses Association, approved by
56.5 	the Legislative Coordinating Commission Subcommittee on Employee
56.6 	Relations on December 20, 2004, is ratified.
56.7 		Subd. 7.Teachers retirement association. The proposal
56.8 	to increase the salary of the executive director of the Teachers
56.9 	Retirement Association, as modified and approved by the
56.10 	Legislative Coordinating Commission Subcommittee on Employee
56.11 	Relations on December 20, 2004, is ratified.
56.12 		Subd. 8.Minnesota state retirement system. The proposal
56.13 	to increase the salary of the executive director of the
56.14 	Minnesota State Retirement System, as modified and approved by
56.15 	the Legislative Coordinating Commission Subcommittee on Employee
56.16 	Relations on December 20, 2004, is ratified.
56.17 		Subd. 9.Public employees retirement association. The
56.18 	proposal to increase the salary of the executive director of the
56.19 	Public Employees Retirement Association, as modified and
56.20 	approved by the Legislative Coordinating Commission Subcommittee
56.21 	on Employee Relations on December 20, 2004, is ratified.
56.22 	
EFFECTIVE DATE. This section is effective the day
56.23 	following final enactment.

56.24 	ARTICLE 4
56.25 	STATE MANDATES

56.26 	Section 1. [471B.01] DEFINITIONS.
56.27 		Subdivision 1.Scope. For purposes of this chapter, the
56.28 	terms defined in this section have the meanings given them.
56.29 		Subd. 2.Local government. "Local government" means a
56.30 	county, town, school district, or statutory or home rule charter
56.31 	city.
56.32 		Subd. 3.Local government of the same kind. "Local
56.33 	government of the same kind" means any category of the
56.34 	following:  all cities, all counties, all school districts, or
56.35 	all towns.
56.36 		Subd. 4.Same class. "Same class" means all cities of
57.1 	the same class.
57.2 		Subd. 5.School district. "School district" means a
57.3 	common, independent, or special school district and excludes
57.4 	charter schools.
57.5 		Subd. 6.State mandate. "State mandate" means a state
57.6 	law or rule specifically directed at or related to local
57.7 	government structure, operation, services, programs, or
57.8 	financing that:
57.9 	(1) imposes a cost on a local government, whether or not
57.10 	the state appropriates money for the local government to cover
57.11 	the total costs of the mandate, or specifically authorizes the
57.12 	local government to impose a tax or fee to cover the costs;
57.13 	(2) decreases revenue available to a local government
57.14 	without a commensurate decrease in services and programs
57.15 	required by the law or rule;
57.16 	(3) makes a local government, or its officers or employees,
57.17 	civilly or criminally liable for failure to follow or enforce
57.18 	the law or rule;
57.19 	(4) restricts the ability of a local government to
57.20 	establish services, programs, policies, plans, or goals, or
57.21 	restricts its ability to raise revenue or finance its services,
57.22 	programs, policies, plans, or goals; or 
57.23 	(5) implements or interprets federal law and, by its
57.24 	implementation or interpretation, increases or decreases
57.25 	program, service, or funding levels.

57.26 	Sec. 2. [471B.02] REFORM OR OPT OUT RESOLUTION AND
57.27 	PROCEDURES.
57.28 		Subdivision 1.Local procedure. (a) A local government
57.29 	may, by written resolution of the governing body after public
57.30 	notice and hearing, propose that a state mandate imposed on all
57.31 	local governments of the same kind or class should not apply to
57.32 	it.  A local government also may include in a resolution
57.33 	recommendations for reforming a mandate.  A local government
57.34 	must adopt a separate resolution for each mandate that it
57.35 	proposes should not apply to it.  The resolution must:
57.36 	(1) specifically cite the state law or rule that imposes
58.1 	the mandate on the local government;
58.2 	(2) identify any costs of complying with the mandate and
58.3 	the total amount of federal and state funds available for
58.4 	complying with the mandate;
58.5 	(3) state the reasons the local government needs to opt out
58.6 	of the state mandate and may recommend mandate reforms to
58.7 	achieve greater efficiencies; and 
58.8 	(4) indicate how the local government will otherwise meet
58.9 	the objectives of the mandate or why the objectives do not apply
58.10 	to the local government.
58.11 	(b) Before voting on the resolution, the governing body
58.12 	must give adequate public notice of the proposed resolution,
58.13 	including information on whether state or federal funding for
58.14 	the local government might be adversely affected.  The governing
58.15 	body must hold at least one public hearing on the proposed
58.16 	resolution and afford the public opportunity for comment.  The
58.17 	governing body must encourage public participation in the
58.18 	hearing in order to determine the extent of public support for
58.19 	the proposed resolution.
58.20 	(c) The proponent of the proposed resolution at least must
58.21 	identify at the hearing:
58.22 	(1) the costs of complying with the mandate that exceed the
58.23 	state and federal funds allocated to the district for purposes
58.24 	of the mandate and recommend reforms for achieving greater
58.25 	efficiencies;
58.26 	(2) any potential loss of state or federal revenue that
58.27 	might result from opting out of the state mandate;
58.28 	(3) other policy issues or effects that might result;
58.29 	(4) the purposes for which the mandate was imposed;
58.30 	(5) any persons or categories of person who will be
58.31 	adversely affected if the mandate is not complied with; and 
58.32 	(6) the costs and benefits of the mandate compared to the
58.33 	costs and benefits of inaction.
58.34 	(d) A local government that adopts a resolution must file
58.35 	the resolution with the state auditor.  At the time of filing,
58.36 	the local government must pay the state auditor a fee to cover
59.1 	actual costs the state auditor incurs in performing the duties
59.2 	under this section.  The amount of the fee is as follows:
59.3 	(1) for each resolution filed by a local government with a
59.4 	population over 100,000, $500;
59.5 	(2) for each resolution filed by a local government with a
59.6 	population over 20,000 and not more than 100,000, $350;
59.7 	(3) for each resolution filed by a local government with a
59.8 	population over 10,000 and not more than 20,000, $200; and 
59.9 	(4) for each resolution filed by a local government with a
59.10 	population of not more than 10,000, $50.
59.11 	All fees collected under this section are appropriated to the
59.12 	state auditor for the purposes of this section.  On July 1,
59.13 	2005, and each July 1 thereafter, using the powers granted under
59.14 	chapter 6, the auditor must determine the actual costs of
59.15 	performing the duties under this section and adjust the amount
59.16 	of the fee to reflect the auditor's actual costs.
59.17 		Subd. 2.State procedure. The state auditor must:
59.18 	(1) list on the state auditor's Web site all state mandates
59.19 	cited in a resolution filed with the state auditor, identifying
59.20 	for each mandate the local governments that adopted and filed a
59.21 	resolution to opt out of a mandate, and whether the threshold
59.22 	under subdivision 3 for opting out is met;
59.23 	(2) keep a running total of the number and percent of local
59.24 	governments of the same kind and, if applicable, same class,
59.25 	that have filed a resolution to opt out; and 
59.26 	(3) notify the legislature when the threshold under
59.27 	subdivision 3 for opting out is met.
59.28 		Subd. 3.Threshold and certification for opting out;
59.29 	legislative oversight. (a) The state auditor must notify the
59.30 	house of representatives and senate when the auditor certifies
59.31 	that the minimum number of local governments of the same kind,
59.32 	and, if applicable, same class, file resolutions under the
59.33 	requirements of this chapter.  The minimum number is set in
59.34 	paragraph (c).  The legislature must consider at least seven
59.35 	certified opt out or reform proposals from each government of
59.36 	the same kind or class listed in paragraph (c) submitted as a
60.1 	notice from the auditor delivered to the legislature before the
60.2 	regular session convenes in any year.  The resolutions shall not
60.3 	have any effect for implementation unless approved by law under
60.4 	this subdivision.
60.5 	(b) The house of representatives and senate must adopt
60.6 	rules ensuring that bills to specifically address at least seven
60.7 	mandates for which the minimum number of resolutions have been
60.8 	filed are given a priority status and presented to the house and
60.9 	senate for consideration and action by that body in a timely
60.10 	manner during the regular session that year.
60.11 	(c) The minimum number of local governments of the same
60.12 	kind or class are:
60.13 	(1) six counties;
60.14 	(2) 25 home rule charter cities;
60.15 	(3) 50 statutory cities;
60.16 	(4) two cities of the first class;
60.17 	(5) 14 cities of the second class;
60.18 	(6) 11 cities of the third class;
60.19 	(7) 50 cities of the fourth class;
60.20 	(8) 75 towns; and 
60.21 	(9) 24 school districts.
60.22 		Subd. 4.Opt out or reform implementation and later
60.23 	opting out or reforms. After initial opt-out resolutions are
60.24 	approved by the legislature and take effect, other local
60.25 	governments of the same kind and, if applicable, same class, may
60.26 	file resolutions to opt out of the same mandate.  The
60.27 	later-filed resolutions must be consistent with the law enacted
60.28 	in response to the initial opt-out resolutions and later-filed
60.29 	resolutions are only effective to the extent authorized by that
60.30 	law.  Each of these takes effect 30 days after the auditor
60.31 	accepts the filing.

60.32 	ARTICLE 5
60.33 	MINNEAPOLIS TEACHER PENSIONS

60.34 	Section 1. Minnesota Statutes 2004, section 354A.08, is
60.35 	amended to read:
60.36 	354A.08 AUTHORIZED INVESTMENTS.
61.1 	(a) A teachers retirement fund association may receive,
61.2 	hold, and dispose of real estate or personal property acquired
61.3 	by it, whether the acquisition was by purchase, or any other
61.4 	lawful means, as provided in this chapter or in the
61.5 	association's articles of incorporation.  In addition to other
61.6 	authorized real estate investments, an association may also
61.7 	invest funds in Minnesota situs nonfarm real estate ownership
61.8 	interests or loans secured by mortgages or deeds of trust.
61.9 	(b) All or a portion of the assets of a first class city
61.10 	teacher retirement fund association may be invested by the State
61.11 	Board of Investment under section 11A.14.

61.12 	Sec. 2. Minnesota Statutes 2004, section 354A.12,
61.13 	subdivision 3a, is amended to read:
61.14 		Subd. 3a.Special direct state aid to first class city
61.15 	teachers retirement fund associations.  (a) In fiscal year 1998,
61.16 	the state shall pay $4,827,000 to the St. Paul Teachers
61.17 	Retirement Fund Association, $17,954,000 to the Minneapolis
61.18 	Teachers Retirement Fund Association, and $486,000 to the Duluth
61.19 	Teachers Retirement Fund Association.In each subsequent fiscal
61.20 	year, these payments the state shall pay to the first class city
61.21 	teachers retirement fund associations must be $2,827,000 
61.22 	$2,967,000 for the St. Paul, $12,954,000 Teachers Retirement
61.23 	Fund Association and $13,300,000 for the Minneapolis, and
61.24 	$486,000 for Duluth Teachers Retirement Fund Association.
61.25 	(b) The direct state aids under this subdivision are
61.26 	payable October 1 annually.  The commissioner of finance shall
61.27 	pay the direct state aid.  The amount required under this
61.28 	subdivision is appropriated annually from the general fund to
61.29 	the commissioner of finance.
61.30 	(c) The direct state aid for the Minneapolis Teachers
61.31 	Retirement Fund Association is governed by section 354A.121.

61.32 	Sec. 3. Minnesota Statutes 2004, section 354A.12,
61.33 	subdivision 3b, is amended to read:
61.34 		Subd. 3b.Special direct state matching aid to the
61.35 	minneapolis teachers retirement fund association.  (a) Special
61.36 	School District No. 1 may make an additional employer
62.1 	contribution to the Minneapolis Teachers Retirement Fund
62.2 	Association.  The city of Minneapolis may make a contribution to
62.3 	the Minneapolis Teachers Retirement Fund Association.  This
62.4 	contribution may be made by a levy of the board of estimate and
62.5 	taxation of the city of Minneapolis and the levy, if made, is
62.6 	classified as that of a special taxing district for purposes of
62.7 	sections 275.065 and 276.04, and for all other property tax
62.8 	purposes.
62.9 	(b) For every $1,000 contributed in equal proportion by
62.10 	Special School District No. 1 and by the city of Minneapolis to
62.11 	the Minneapolis Teachers Retirement Fund Association under
62.12 	paragraph (a), the state shall pay to the Minneapolis Teachers
62.13 	Retirement Fund Association $1,000, but not to exceed $2,500,000
62.14 	in total in fiscal year 1994.  The superintendent of Special
62.15 	School District No. 1, the mayor of the city of Minneapolis, and
62.16 	the executive director of the Minneapolis Teachers Retirement
62.17 	Fund Association shall jointly certify to the commissioner of
62.18 	finance the total amount that has been contributed by Special
62.19 	School District No. 1 and by the city of Minneapolis to the
62.20 	Minneapolis Teachers Retirement Fund Association.  Any
62.21 	certification to the commissioner of education must be made
62.22 	quarterly.  If the total certifications for a fiscal year exceed
62.23 	the maximum annual direct state matching aid amount in any
62.24 	quarter, the amount of direct state matching aid payable to the
62.25 	Minneapolis Teachers Retirement Fund Association must be limited
62.26 	to the balance of the maximum annual direct state matching aid
62.27 	amount available.  The amount required under this paragraph,
62.28 	subject to the maximum direct state matching aid amount, is
62.29 	appropriated annually to the commissioner of finance. The state
62.30 	matching aid is governed by section 354A.121.
62.31 	(c) The commissioner of finance may prescribe the form of
62.32 	the certifications required under paragraph (b).

62.33 	Sec. 4. [354A.121] INVESTMENT PROCEDURES FOR STATE AID TO
62.34 	MINNEAPOLIS TEACHERS RETIREMENT PLAN.
62.35 	(a) Notwithstanding any provision of law to the contrary,
62.36 	special direct state aid to the Minneapolis Teachers Retirement
63.1 	Fund Association under section 354A.12, subdivision 3a or 3b,
63.2 	and amortization or supplementary amortization state aid
63.3 	reallocated to the Minneapolis Teachers Retirement Fund
63.4 	Association, must be transferred and invested as provided in
63.5 	this section.
63.6 	(b) State aid for the Minneapolis Teachers Retirement Fund
63.7 	Association referenced in paragraph (a) must be transferred to
63.8 	the executive director of the State Board of Investment for
63.9 	investment.
63.10 	(c) If the assets of the Minneapolis teachers retirement
63.11 	fund other than the assets invested by the State Board of
63.12 	Investment are insufficient to pay retirement annuities and
63.13 	benefits that are due and payable or the reasonable and
63.14 	necessary administrative expenses of the retirement plan that
63.15 	are due and payable, the executive director of the State Board
63.16 	of Investment shall transfer the required amount to meet that
63.17 	insufficiency to the chief administrative officer of the
63.18 	Minneapolis Teachers Retirement Fund Association.
63.19 	(d) For purposes of annual actuarial valuations and annual
63.20 	financial reports, the shares in the Minnesota supplemental
63.21 	investment fund owned by the Minneapolis teachers retirement
63.22 	fund must be considered an asset of the Minneapolis teachers
63.23 	retirement fund.

63.24 	Sec. 5. [354A.281] MINNEAPOLIS TEACHERS RETIREMENT FUND
63.25 	ASSOCIATION; POSTRETIREMENT ADJUSTMENTS.
63.26 	On January 1, 2006, and every January 1 thereafter,
63.27 	eligible annuitants and benefit recipients of the Minneapolis
63.28 	Teachers Retirement Fund Association are entitled to a
63.29 	percentage postretirement adjustment equal to the percentage
63.30 	adjustment payable under section 11A.18.  Eligibility for a
63.31 	postretirement adjustment must be governed by section 11A.18,
63.32 	subdivision 9, paragraphs (c), clause (2), and (e).

63.33 	Sec. 6. REPEALER.
 63.34 	(a) Minnesota Statutes, section 354A.28, is repealed.
63.35 	(b) Article 30, sections 30.3, 30.4, and 30.5, of the
63.36 	restated articles of incorporation of the Minneapolis Teachers
64.1 	Retirement Fund Association are repealed.

64.2 	Sec. 7. EFFECTIVE DATE.
 64.3 	Sections 1 to 6 are effective July 1, 2005.

64.4 	ARTICLE 6
64.5 	MILITARY

64.6 	Section 1. Minnesota Statutes 2004, section 43A.183, is
64.7 	amended to read:
64.8 	43A.183 PAYMENT OF SALARY DIFFERENTIAL FOR RESERVE FORCES
64.9 	WHO REPORTED FOR ACTIVE SERVICE.
64.10 	(a) Each agency head shall pay to each eligible member of
64.11 	the National Guard or other reserve component of the United
64.12 	States Armed Forces of the United States an amount equal to the
64.13 	difference between the member's basic active duty military
64.14 	salary and the salary the member would be paid as an active
64.15 	state employee, including any adjustments the member would have
64.16 	received if not on leave of absence person's salary differential
64.17 	for each month or portion of month that the person is ordered to
64.18 	serve in active military service.  The person's salary
64.19 	differential is calculated as the difference between:
64.20 	(1) the person's monthly total gross earnings as an active
64.21 	state employee, excluding any overtime pay received but
64.22 	including all other earnings, averaged over the last three full
64.23 	months of the person's active state employment prior to
64.24 	reporting to active military service, and including any
64.25 	additional salary or earnings adjustments that the person would
64.26 	have received at anytime during the person's military leave had
64.27 	the person been serving as an active state employee during that
64.28 	time; and 
64.29 	(2) the person's monthly base pay in active military
64.30 	service.
64.31 	This payment may be made only to a person whose basic
64.32 	active duty military salary is less than the salary the person
64.33 	would be paid as an active state employee for whom the amount in
64.34 	clause (1) is greater than the amount in clause (2).  Payments
64.35 	must be made at the intervals at which the member received pay
64.36 	as a state employee, except that any back pay due under this
65.1 	section may be paid as a lump sum.  Payment under this section
65.2 	must not extend beyond four years from the date the employee
65.3 	reported for active service, plus any additional time the
65.4 	employee may be legally required to serve. An eligible member
65.5 	of the National Guard or other reserve component of the United
65.6 	States Armed Forces may apply for the pay differential benefits
65.7 	authorized under this section prior to, during, or following the
65.8 	person's active military service on or after May 29, 2003.
65.9 	(b) An eligible member of the reserve components of the
65.10 	United States Armed Forces of the United States is a reservist
65.11 	or National Guard member who was an employee of the state of
65.12 	Minnesota at the time the member reported took military leave
65.13 	under section 192.261 to report for active military service.
65.14 	(c) For the purposes of this section, an employee of the
65.15 	state is an employee of the executive, judicial, or legislative
65.16 	branch of state government or an employee of the Minnesota State
65.17 	Retirement System, the Public Employee Retirement Association,
65.18 	or the Teachers Retirement Association.
65.19 	(d) For purposes of this section, the term "active service"
65.20 	has the meaning given in section 190.05, subdivision 5, but
65.21 	excludes service performed exclusively for purposes of:
65.22 	(1) basic combat training, advanced individual training,
65.23 	annual training, and periodic inactive duty training;
65.24 	(2) special training periodically made available to reserve
65.25 	members; and 
65.26 	(3) service performed in accordance with section 190.08,
65.27 	subdivision 3; and 
65.28 	(4) service performed as part of the active guard/reserve
65.29 	program pursuant to United States Code, title 32, section
65.30 	502(f), or other applicable authority.
65.31 	(e) The agency head must continue the employee's enrollment
65.32 	in health and dental coverage, and the employer contribution
65.33 	toward that coverage, until the employee is covered by health
65.34 	and dental coverage provided by the armed forces reports for
65.35 	active military service.  If the employee had elected dependent
65.36 	coverage for health or dental coverage as of the time that the
66.1 	employee reported for active service, the agency head must offer
66.2 	the employee the option to continue the dependent coverage at
66.3 	the employee's own expense.  The agency head must permit the
66.4 	employee to continue participating in any pretax account in
66.5 	which the employee participated when the employee reported for
66.6 	active service, to the extent of employee pay available for that
66.7 	purpose. An employee who has opted to continue a permitted
66.8 	benefit may cancel that continuation at anytime during the
66.9 	person's military leave by written notification from the
66.10 	employee, or from the employee's designated attorney-in-fact
66.11 	under a power of attorney, to the agency head or the
66.12 	commissioner of employee relations.
66.13 	(f) The agency head must periodically inform in writing all
66.14 	agency personnel who are or may be members of the reserve
66.15 	component of the United States Armed Forces of the benefits
66.16 	provided under this section and of the procedures relevant to
66.17 	securing those benefits, including, but not limited to, any
66.18 	procedures regarding the continuation and discontinuation of any
66.19 	optional deductions.  It will suffice to meet this requirement
66.20 	if the agency head posts the information on the agency Web site
66.21 	in a highly recognizable manner that can be easily found and
66.22 	understood by the employees to whom it might apply.
66.23 	Upon being ordered to active duty, the employee must notify
66.24 	the agency head of that order in a timely manner and must
66.25 	provide to the agency head the name of and contact information
66.26 	for the employee's designated attorney-in-fact under a power of
66.27 	attorney.  Prior to the commencement of the employee's military
66.28 	leave, the agency head must ensure the agency's receipt of that
66.29 	information and immediately convey that information to the
66.30 	commissioners of finance and employee relations, including any
66.31 	subsequent change in that designation by the employee.  When
66.32 	communicating with the employee during the person's military
66.33 	leave, the agency head and the commissioners of finance and
66.34 	employee relations must immediately provide a copy of the
66.35 	communication to the employee's designated attorney-in-fact.
66.36 	Those officials must also honor requests for information or
67.1 	other appropriate directives from that designee on behalf of the
67.2 	employee during the employee's military leave.
67.3 	(g) The commissioners of employee relations and finance
67.4 	shall adopt procedures required to implement this section.  The
67.5 	procedures are exempt from chapter 14.
67.6 	(g) (h) This section does not apply to a judge, legislator,
67.7 	or constitutional officer of the executive branch.

67.8 	EFFECTIVE DATE. This section is effective the day
67.9 	following final enactment and applies to state employees serving
67.10 	in active military service on or after May 29, 2003.

67.11 	Sec. 2. Minnesota Statutes 2004, section 190.16, is
67.12 	amended by adding a subdivision to read:
67.13 		Subd. 6a.Rental of camp ripley facilities. The adjutant
67.14 	general or the adjutant general's designee may rent buildings or
67.15 	other facilities at Camp Ripley to persons under terms and
67.16 	conditions specified by the adjutant general or designee.
67.17 	Subject to any prohibitions or restrictions in any agreement
67.18 	between the United States and the state of Minnesota, proceeds
67.19 	of rentals under this subdivision must be applied as follows:
67.20 	(1) payment of increased utilities, maintenance, or other
67.21 	costs directly attributable to the rental;
67.22 	(2) other operating and maintenance or repair costs for the
67.23 	building or facility being rented; and 
67.24 	(3) maintenance and improvement of buildings or other
67.25 	facilities at Camp Ripley.
67.26 	Rentals under this subdivision must be made under terms and
67.27 	conditions that do not conflict with the use of Camp Ripley for
67.28 	military purposes.

67.29 	Sec. 3. Minnesota Statutes 2004, section 192.19, is
67.30 	amended to read:
67.31 	192.19 RETIRED MEMBERS MAY BE ORDERED TO ACTIVE DUTY.
67.32 	The commander-in-chief or the adjutant general may assign
67.33 	officers, warrant officers, and enlisted personnel on the
67.34 	retired list, with their consent, to temporary active service in
67.35 	recruiting, upon courts-martial, courts of inquiry and boards,
67.36 	to staff duty not involving service with troops, or in charge of
68.1 	a military reservation left temporarily without officers.  Such
68.2 	personnel while so assigned shall receive the full pay and
68.3 	allowances of their grades at time of retirement, except that
68.4 	the commander-in-chief or the adjutant general may authorize pay
68.5 	and allowances in a higher grade when it is considered
68.6 	appropriate based on special skills or experience of the person
68.7 	being assigned to temporary active service.

68.8 	Sec. 4. Minnesota Statutes 2004, section 192.261,
68.9 	subdivision 1, is amended to read:
68.10 		Subdivision 1.Leave of absence without pay.  Subject to
68.11 	the conditions hereinafter prescribed, any officer or employee
68.12 	of the state or of any political subdivision, municipal
68.13 	corporation, or other public agency of the state who engages in
68.14 	active service in time of war or other emergency declared by
68.15 	proper authority in any of the military or naval forces of the
68.16 	state or of the United States for which leave is not otherwise
68.17 	allowed by law shall be entitled to leave of absence from the
68.18 	officer's or employee's public office or employment without pay
68.19 	during such service, with right of reinstatement as hereinafter
68.20 	provided.  Such leave of absence without pay, whether heretofore
68.21 	or hereafter, shall not extend beyond four years plus such
68.22 	additional time in each case as such an officer or employee may
68.23 	be required to serve pursuant to law.  This shall not be
68.24 	construed to preclude the allowance of leave with pay for such
68.25 	service to any person entitled thereto under section 43A.183,
68.26 	192.26, or 471.975.  Nothing in this section contained shall
68.27 	affect any of the provisions or application of section 352.27
68.28 	nor of section 192.26 to 192.264, or any laws amendatory
68.29 	thereof, insofar as such sections pertain to the state employees
68.30 	retirement association or its members.
68.31 	
EFFECTIVE DATE. This section is effective the day
68.32 	following final enactment and applies to state employees serving
68.33 	in active military service on or after May 29, 2003.

68.34 	Sec. 5. Minnesota Statutes 2004, section 192.261,
68.35 	subdivision 2, is amended to read:
68.36 		Subd. 2.Reinstatement.  Except as otherwise hereinafter
69.1 	provided, upon the completion of such service such officer or
69.2 	employee shall be reinstated in the public position, which was
69.3 	held at the time of entry into such service, or a public
69.4 	position of like seniority, status, and pay if such is available
69.5 	at the same salary which the officer or employee would have
69.6 	received if the leave had not been taken, upon the following
69.7 	conditions:  (1) that the position has not been abolished or
69.8 	that the term thereof, if limited, has not expired; (2) that the
69.9 	officer or employee is not physically or mentally disabled from
69.10 	performing the duties of such position; (3) that the officer or
69.11 	employee makes written application for reinstatement to the
69.12 	appointing authority within 90 days after termination of such
69.13 	service, or 90 days after discharge from hospitalization or
69.14 	medical treatment which immediately follows the termination of,
69.15 	and results from, such service; provided such application shall
69.16 	be made within one year and 90 days after termination of such
69.17 	service notwithstanding such hospitalization or medical
69.18 	treatment; (4) that the officer or employee submits an honorable
69.19 	discharge or other form of release by proper authority
69.20 	indicating that the officer's or employee's military or naval
69.21 	service was satisfactory.  Upon such reinstatement the officer
69.22 	or employee shall have the same rights with respect to accrued
69.23 	and future seniority status, efficiency rating, vacation, sick
69.24 	leave, and other benefits as if that officer or employee had
69.25 	been actually employed during the time of such leave. The
69.26 	officer or employee reinstated under this section is entitled to
69.27 	vacation and sick leave with pay as provided in any applicable
69.28 	civil service rules, collective bargaining agreement, or
69.29 	compensation plan, and accumulates vacation and sick leave from
69.30 	the time the person enters active military service until the
69.31 	date of reinstatement without regard to any otherwise applicable
69.32 	limits on civil service rules limiting the number of days which
69.33 	may be accumulated.No officer or employee so reinstated shall
69.34 	be removed or discharged within one year thereafter except for
69.35 	cause, after notice and hearing; but this shall not operate to
69.36 	extend a term of service limited by law.
70.1 	
EFFECTIVE DATE. This section is effective the day
70.2 	following final enactment and applies to any public officer or
70.3 	public employee serving in active military service on or after
70.4 	September 11, 2001.

70.5 	Sec. 6. Minnesota Statutes 2004, section 192.501,
70.6 	subdivision 2, is amended to read:
70.7 		Subd. 2.Tuition and textbook reimbursement grant
70.8 	program.  (a) The adjutant general shall establish a program to
70.9 	provide tuition and textbook reimbursement grants to eligible
70.10 	members of the Minnesota National Guard within the limitations
70.11 	of this subdivision.
70.12 	(b) Eligibility is limited to a member of the National
70.13 	Guard who:
70.14 	(1) is serving satisfactorily as defined by the adjutant
70.15 	general;
70.16 	(2) is attending a postsecondary educational institution,
70.17 	as defined by section 136A.15, subdivision 6, including a
70.18 	vocational or technical school operated or regulated by this
70.19 	state or another state or province; and
70.20 	(3) provides proof of satisfactory completion of
70.21 	coursework, as defined by the adjutant general.
70.22 	In addition,(c) Notwithstanding paragraph (b), clause (1),
70.23 	for a person who:
70.24 	(1) has satisfactorily completed the person's service
70.25 	contract in the Minnesota National Guard or the portion of it
70.26 	involving selective reserve status, for which any part of that
70.27 	service was spent serving honorably in federal active service or
70.28 	federally funded state active service since September 11, 2001,
70.29 	the person's eligibility is extended for a period of two years,
70.30 	plus an amount of time equal to the duration of that person's
70.31 	active service, subject to the credit hours limit in paragraph
70.32 	(h); or 
70.33 	(2) has served honorably in the Minnesota National Guard
70.34 	and has been separated or discharged from that organization due
70.35 	to a service-connected injury, disease, or disability, the
70.36 	eligibility period is extended for eight years beyond the date
71.1 	of separation, subject to the credit hours limit in paragraph
71.2 	(h).
71.3 	(d) Notwithstanding paragraph (b), clause (1), a member or
71.4 	former member of the Minnesota National Guard who is eligible
71.5 	for tuition and textbook reimbursement grant benefits under this
71.6 	section and has eligibility remaining under the credit hours
71.7 	limit in paragraph (h), and who has a service-connected
71.8 	disability rating of 30 percent or more as certified by the
71.9 	United States Department of Veterans Affairs, may transfer the
71.10 	person's remaining eligibility to the person's spouse for use in
71.11 	place of the member or former member, subject to the credit
71.12 	hours limit in paragraph (h) for the member and spouse combined,
71.13 	and subject to any time limits applicable to the member or
71.14 	former member.  Notwithstanding any such transfer of grant
71.15 	benefits by the member or former member to the person's spouse,
71.16 	the person may revoke that transfer at anytime; however, any
71.17 	such revocation does not restore the credit hours of eligibility
71.18 	already used by the spouse.
71.19 	(e) If a member of the Minnesota National Guard is killed
71.20 	in the line of state active service or federally funded state
71.21 	active service, as defined in section 190.05, subdivisions 5a
71.22 	and 5b,the member's surviving spouse, and any surviving
71.23 	dependent who has not yet reached 24 years of age, is eligible
71.24 	for a tuition and textbook reimbursement grant, with each
71.25 	eligible person independently subject to the credit hours limit
71.26 	in paragraph (h).
71.27 	(f) The adjutant general may, within the limitations of
71.28 	this paragraph paragraphs (b) to (e) and other applicable laws,
71.29 	determine additional eligibility criteria for the grant, and
71.30 	must specify the criteria in department regulations and publish
71.31 	changes as necessary.
71.32 	(c) (g) The amount of a tuition and textbook reimbursement
71.33 	grant must be specified on a schedule as determined and
71.34 	published in department regulations by the adjutant general, but
71.35 	is limited to a maximum of an amount equal to the greater of:
71.36 	(1) up to 100 percent of the cost of tuition for lower
72.1 	division programs in the College of Liberal Arts at the Twin
72.2 	Cities campus of the University of Minnesota in the most recent
72.3 	academic year; or
72.4 	(2) up to 100 percent of the cost of tuition for the
72.5 	program in which the person is enrolled at that Minnesota public
72.6 	institution, or if that public institution is outside the state
72.7 	of Minnesota, for the cost of a comparable program at the
72.8 	University of Minnesota, except that in the case of a survivor
72.9 	as defined in paragraph (b), the amount of the tuition and
72.10 	textbook reimbursement grant for coursework satisfactorily
72.11 	completed by the person is limited to 100 percent of the cost of
72.12 	tuition for postsecondary courses at a Minnesota public
72.13 	educational institution.
72.14 	Paragraph (h) Paragraphs (b) to (f) notwithstanding, a
72.15 	person is no longer eligible for a grant under this subdivision
72.16 	once the person has received grants under this subdivision for
72.17 	the equivalent of 208 quarter credits or 144 semester credits of
72.18 	coursework.
72.19 	(d) (i) Tuition and textbook reimbursement grants received
72.20 	under this subdivision may not be considered by the Minnesota
72.21 	Higher Education Services Office or by any other state board,
72.22 	commission, or entity in determining a person's eligibility for
72.23 	a scholarship or grant-in-aid under sections 136A.095 to
72.24 	136A.1311.
72.25 	(e) (j) If a member fails to complete a term of enlistment
72.26 	during which a tuition and textbook reimbursement grant was
72.27 	paid, the adjutant general may seek to recoup a prorated amount
72.28 	as determined by the adjutant general. However, this authority
72.29 	does not apply to a person whose separation from the Minnesota
72.30 	National Guard is due to a medical condition or financial
72.31 	hardship.
72.32 	(k) For purposes of this section, the terms "active
72.33 	service," "state active service," "federally funded state active
72.34 	service," and "federal active service" have the meanings given
72.35 	in section 190.05, subdivisions 5 to 5c, respectively, except
72.36 	that for purposes of paragraph (c), clause (1), these terms
73.1 	exclude service performed exclusively for purposes of:
73.2 	(1) basic combat training, advanced individual training,
73.3 	annual training, and periodic inactive duty training;
73.4 	(2) special training periodically made available to reserve
73.5 	members;
73.6 	(3) service performed in accordance with section 190.08,
73.7 	subdivision 3; and 
73.8 	(4) service performed as part of the active guard/reserve
73.9 	program pursuant to United States Code, title 32, section
73.10 	502(f), or other applicable authority.
73.11 	
EFFECTIVE DATE. This section is effective the day
73.12 	following final enactment and applies to persons who have served
73.13 	in the Minnesota National Guard at anytime since September 11,
73.14 	2001, and if the person has died in the line of service, to the
73.15 	person's surviving spouse and dependents as well.

73.16 	Sec. 7. Minnesota Statutes 2004, section 193.29,
73.17 	subdivision 3, is amended to read:
73.18 		Subd. 3.Joint boards.  In all cases in which more than
73.19 	one company or other unit of the military forces shall occupy
73.20 	the same armory, the armory board shall consist of
73.21 	officers military personnel assigned to the units or
73.22 	organizations quartered therein.  The adjutant general shall
73.23 	designate by order from time to time the representatives of each
73.24 	unit quartered therein to comprise the armory board for each
73.25 	armory.  In the discretion of the adjutant general, the
73.26 	membership of the board may be comprised of officers, warrant
73.27 	officers, and enlisted personnel and may be changed from time to
73.28 	time so as to give the several organizations quartered therein
73.29 	proper representation on the board.

73.30 	Sec. 8. Minnesota Statutes 2004, section 193.30, is
73.31 	amended to read:
73.32 	193.30  COMMANDING OFFICERS MANAGEMENT OF ARMORY BOARD.
73.33 	The senior officer member on each armory board shall be the
73.34 	chair, and the junior officer member thereof shall be the
73.35 	recorder.  A record of the proceedings of the board shall be
73.36 	kept, and all motions offered, whether seconded or not, shall be
74.1 	put to a vote and the result recorded.  In the case of a tie
74.2 	vote the adjutant general, upon the request of any member, shall
74.3 	decide.  The governor may make and alter rules for the
74.4 	government of armory boards, officers, and other persons having
74.5 	charge of armories, arsenals, or other military property of the
74.6 	state.

74.7 	Sec. 9. Minnesota Statutes 2004, section 193.31, is
74.8 	amended to read:
74.9 	193.31  SENIOR OFFICER TO CONTROL OF DRILL HALL.
74.10 	The senior officer member of any company or other
74.11 	organization assembling at an armory for drill or instruction
74.12 	shall have control of the drill hall or other portion of the
74.13 	premises used therefor during such occupancy, subject to the
74.14 	rules prescribed for its use and the orders of that officer's 
74.15 	member's superior.  Any person who intrudes contrary to orders,
74.16 	or who interrupts, molests, or insults any troops so assembled,
74.17 	or who refuses to leave the premises when properly requested so
74.18 	to do, shall be guilty of a misdemeanor.  Nothing in this
74.19 	section shall prevent reasonable inspection of the premises by
74.20 	the proper municipal officer, or by the lessor thereof in
74.21 	accordance with the terms of the lease.

74.22 	Sec. 10. Minnesota Statutes 2004, section 471.975, is
74.23 	amended to read:
74.24 	471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
74.25 	(a) Except as provided in paragraph (b), a statutory or
74.26 	home rule charter city, county, town, or other political
74.27 	subdivision may pay to each eligible member of the National
74.28 	Guard or other reserve component of the armed forces of the
74.29 	United States an amount equal to the difference between the
74.30 	member's basic active duty military salary and the salary the
74.31 	member would be paid as an active political subdivision
74.32 	employee, including any adjustments the member would have
74.33 	received if not on leave of absence.  This payment may be made
74.34 	only to a person whose basic active duty military salary is less
74.35 	than the salary the person would be paid as an active political
74.36 	subdivision employee.  Back pay authorized by this section may
75.1 	be paid in a lump sum.  Payment under this section must not
75.2 	extend beyond four years from the date the employee reported for
75.3 	active service, plus any additional time the employee may be
75.4 	legally required to serve.
75.5 	(b) Subject to the limits under paragraph (g), each school
75.6 	district shall pay to each eligible member of the National Guard
75.7 	or other reserve component of the armed forces of the United
75.8 	States an amount equal to the difference between the member's
75.9 	basic active duty military salary and the salary the member
75.10 	would be paid as an active school district employee, including
75.11 	any adjustments the member would have received if not on leave
75.12 	of absence.  The pay differential must be based on a comparison
75.13 	between the member's daily rate of active duty pay, calculated
75.14 	by dividing the member's military monthly salary by the number
75.15 	of paid days in the month, and the member's daily rate of pay
75.16 	for the member's school district salary, calculated by dividing
75.17 	the member's total school district salary by the number of
75.18 	contract days.  The member's salary as a school district
75.19 	employee must include the member's basic salary and any
75.20 	additional salary the member earns from the school district for
75.21 	cocurricular activities.  The differential payment under this
75.22 	paragraph must be the difference between the daily rates of
75.23 	military pay times the number of school district contract days
75.24 	the member misses because of military active duty.  This payment
75.25 	may be made only to a person whose basic active duty military
75.26 	salary is less than the salary the person would be paid as an
75.27 	active school district employee.  Payments may be made at the
75.28 	intervals at which the member received pay as a school district
75.29 	employee.  Payment under this section must not extend beyond
75.30 	four years from the date the employee reported for active
75.31 	service, plus any additional time the employee may be legally
75.32 	required to serve.
75.33 	(c) An eligible member of the reserve components of the
75.34 	armed forces of the United States is a reservist or National
75.35 	Guard member who was an employee of a political subdivision at
75.36 	the time the member reported for active service on or after May
76.1 	29, 2003, or who is on active service on May 29, 2003.
76.2 	(d) Notwithstanding other obligations under law and Except
76.3 	as provided in paragraph (e) and elsewhere in Minnesota
76.4 	Statutes, a statutory or home rule charter city, county, town,
76.5 	or other political subdivision has total discretion regarding
76.6 	employee benefit continuation for a member who reports for
76.7 	active service and the terms and conditions of any benefit.
76.8 	(e) A school district must continue the employee's
76.9 	enrollment in health and dental coverage, and the employer
76.10 	contribution toward that coverage, until the employee is covered
76.11 	by health and dental coverage provided by the armed forces.  If
76.12 	the employee had elected dependent coverage for health or dental
76.13 	coverage as of the time that the employee reported for active
76.14 	service, a school district must offer the employee the option to
76.15 	continue the dependent coverage at the employee's own expense.
76.16 	A school district must permit the employee to continue
76.17 	participating in any pretax account in which the employee
76.18 	participated when the employee reported for active service, to
76.19 	the extent of employee pay available for that purpose.
76.20 	(f) For purposes of this section, "active service" has the
76.21 	meaning given in section 190.05, subdivision 5, but excludes
76.22 	service performed exclusively for purposes of:
76.23 	(1) basic combat training, advanced individual training,
76.24 	annual training, and periodic inactive duty training;
76.25 	(2) special training periodically made available to reserve
76.26 	members; and
76.27 	(3) service performed in accordance with section 190.08,
76.28 	subdivision 3.
76.29 	(g) A school district making payments under paragraph (b)
76.30 	shall place a sum equal to any difference between the amount of
76.31 	salary that would have been paid to the employee who is
76.32 	receiving the payments and the amount of salary being paid to
76.33 	substitutes for that employee into a special fund that must be
76.34 	used to pay or partially pay the deployed employee's payments
76.35 	under paragraph (b).  A school district is required to pay only
76.36 	this amount to the deployed school district employee.

77.1 	EFFECTIVE DATE. This section is effective the day
77.2 	following final enactment and applies to any public officer or
77.3 	public employee serving in active military service on or after
77.4 	September 11, 2001.

77.5 	ARTICLE 7
77.6 	VETERANS

77.7 	Section 1. [196.28] HEPATITIS C EDUCATIONAL MATERIALS.
77.8 	The commissioner of veterans affairs may develop and make
77.9 	available to physicians, other health care providers, veterans,
77.10 	and other persons at high risk for hepatitis C (HCV) educational
77.11 	materials, in written and electronic forms, on the diagnosis,
77.12 	treatment, and prevention of HCV.  The educational materials may
77.13 	include recommendations of the federal Centers for Disease
77.14 	Control and Prevention and any other person or entity having
77.15 	knowledge on HCV, including the American Liver Foundation.  The
77.16 	materials shall be written in terms understandable by members of
77.17 	the general public.

77.18 	Sec. 2. Minnesota Statutes 2004, section 197.608,
77.19 	subdivision 5, is amended to read:
77.20 		Subd. 5.Qualifying uses.  The commissioner shall consult
77.21 	with the Minnesota Association of County Veterans Service
77.22 	Officers in developing a list of qualifying uses for grants
77.23 	awarded under this program. The commissioner is authorized to
77.24 	use any unexpended funding for this program to provide training
77.25 	and education for county veterans service officers.
77.26 	
EFFECTIVE DATE. This section is effective the day
77.27 	following final enactment.

77.28 	Sec. 3. [197.80] LIMITATION ON CONDEMNATION.
77.29 	No county in the metropolitan area may acquire by eminent
77.30 	domain property owned or leased and operated by a nonprofit
77.31 	organization and primarily used to provide recreational
77.32 	opportunities to disabled veterans and their families.

77.33 	EFFECTIVE DATE. This section is effective the day
77.34 	following final enactment.

77.35 	Sec. 4. Minnesota Statutes 2004, section 394.25, is
77.36 	amended by adding a subdivision to read:
78.1 		Subd. 3d.Nonprofit recreational property for use by
78.2 	disabled veterans. Property located in a county in the
78.3 	metropolitan area with a population of less than 500,000, and
78.4 	owned or leased and operated by a nonprofit organization, and
78.5 	primarily used to provide recreational opportunities for
78.6 	disabled veterans and their families is a legal conforming use
78.7 	for purposes of zoning controls.  Improvements to such property
78.8 	shall be allowed under the terms of a planned unit development
78.9 	permit.
78.10 	
EFFECTIVE DATE. This section is effective the day
78.11 	following final enactment.

78.12 	Sec. 5. Minnesota Statutes 2004, section 462.357, is
78.13 	amended by adding a subdivision to read:
78.14 		Subd. 1g.Nonprofit recreational property for use by
78.15 	disabled veterans. Property located in a county in the
78.16 	metropolitan area with a population of less than 500,000, and
78.17 	owned or leased and operated by a nonprofit organization, and
78.18 	primarily used to provide recreational opportunities for
78.19 	disabled veterans and their families is a legal conforming use
78.20 	for purposes of zoning controls.  Improvements to such property
78.21 	shall be allowed under the terms of a planned unit development
78.22 	permit.
78.23 	
EFFECTIVE DATE. This section is effective the day
78.24 	following final enactment.

78.25 	Sec. 6. Minnesota Statutes 2004, section 473.147, is
78.26 	amended by adding a subdivision to read:
78.27 		Subd. 1a.Disabled veterans rest camp excluded from
78.28 	regional recreational open space system. Property occupied by
78.29 	the Disabled Veterans Rest Camp on Big Marine Lake in Washington
78.30 	County is excluded from the regional recreational open space
78.31 	system.
78.32 	
EFFECTIVE DATE. This section is effective the day
78.33 	following final enactment.

78.34 	Sec. 7. Laws 2000, chapter 461, article 4, section 4, as
78.35 	amended by Laws 2003, First Special Session chapter 12, article
78.36 	6, section 3, and Laws 2004, chapter 267, article 17, section 7,
79.1 	is amended to read:
79.2 	Sec. 4EFFECTIVE DATE; SUNSET REPEALER.
 79.3 	(a) Sections 1, 2, and 3 are effective on the day following
79.4 	final enactment.
79.5 	(b) Sections 1, 2, and 3, are repealed on May 16, 2006.

79.6 	EFFECTIVE DATE. This section is effective the day
79.7 	following final enactment.

79.8 	Sec. 8. RESTRICTIONS LIMITED.
 79.9 	No county may take any action to encumber or restrict
79.10 	ingress or egress below levels permissible on January 1, 2005,
79.11 	to property located in a county in the metropolitan area with a
79.12 	population of less than 500,000, and owned or leased and
79.13 	operated by a nonprofit organization, and primarily used to
79.14 	provide recreational opportunities to disabled veterans and
79.15 	their families.

79.16 	EFFECTIVE DATE. This section is effective the day
79.17 	following final enactment.

79.18 	Sec. 9. DISABLED VETERANS CAMP REQUIREMENTS.
 79.19 	The Disabled Veterans Rest Camp on Big Marine Lake in
79.20 	Washington County ("The Camp") must develop and promote camp
79.21 	features and amenities for veterans who are disabled or have
79.22 	limited physical capabilities.  The camp shall modify its
79.23 	operating policies and procedures to include provisions for the
79.24 	regular rotation of the use of campsites, cabins, and parking
79.25 	spots for travel trailers, limiting the time that any one
79.26 	veteran can use the cabin and campsites especially when there is
79.27 	a waiting list of veterans with service-connected disabilities.

79.28 	EFFECTIVE DATE. This section is effective the day
79.29 	following final enactment.

79.30 	Sec. 10. PLAQUE HONORING VETERANS OF THE PERSIAN GULF
79.31 	WAR.
 79.32 	A memorial plaque may be placed in the court of honor on
79.33 	the capitol grounds to recognize the valiant service to our
79.34 	nation by the thousands of brave men and women who served
79.35 	honorably as members of the United States Armed Forces during
79.36 	the Persian Gulf War.  The plaque must be furnished by a person
80.1 	or organization other than the Department of Veterans Affairs
80.2 	and must be approved by the commissioner of veterans affairs and
80.3 	the Capitol Area Architectural and Planning Board.

80.4 	EFFECTIVE DATE. This section is effective the day
80.5 	following final enactment.

80.6 	Sec. 11. REPEALER.
 80.7 	Minnesota Statutes 2004, sections 43A.11, subdivision 2;
80.8 	and 197.455, subdivision 3, are repealed.

80.9 	ARTICLE 8
80.10 	 ELECTRONIC REAL ESTATE RECORDING

80.11 	Section 1. Minnesota Statutes 2004, section 507.093, is
80.12 	amended to read:
80.13 	507.093 STANDARDS FOR DOCUMENTS TO BE RECORDED OR FILED.
80.14 	(a) The following standards are imposed on documents to be
80.15 	recorded with the county recorder or filed with the registrar of
80.16 	titles:
80.17 	(1) The document shall consist of one or more individual
80.18 	sheets measuring no larger than 8.5 inches by 14 inches.
80.19 	(2) The form of the document shall be printed, typewritten,
80.20 	or computer generated in black ink and the form of the document
80.21 	shall not be smaller than 8-point type.
80.22 	(3) The document shall be on white paper of not less than
80.23 	20-pound weight with no background color, images, or writing and
80.24 	shall have a clear border of approximately one-half inch on the
80.25 	top, bottom, and each side.
80.26 	(4) The first page of the document shall contain a blank
80.27 	space at the top measuring three inches, as measured from the
80.28 	top of the page.  The right half to be used by the county
80.29 	recorder for recording information or registrar of titles for
80.30 	filing information and the left half to be used by the county
80.31 	auditor or treasurer for certification.
80.32 	(5) The title of the document shall be prominently
80.33 	displayed at the top of the first page below the blank space
80.34 	referred to in clause (4).
80.35 	(6) No additional sheet shall be attached or affixed to a
80.36 	page that covers up any information or printed part of the form.
81.1 	(7) A document presented for recording or filing must be
81.2 	sufficiently legible to reproduce a readable copy using the
81.3 	county recorder's or registrar of title's current method of
81.4 	reproduction.
81.5 	(b) The standards in this paragraph (a) do not apply to a
81.6 	document that is recorded or filed as part of a pilot project
81.7 	for the electronic filing of real estate documents implemented
81.8 	by the task force created in Laws 2000, chapter 391, or under
81.9 	the Electronic Real Estate Recording Task Force created under
81.10 	section 507.094.  A county that participated in the pilot
81.11 	project for the electronic filing of real estate documents under
81.12 	the task force created in Laws 2000, chapter 391, may continue
81.13 	to record or file documents electronically, if:
81.14 	(1) the county complies with standards adopted by that task
81.15 	force; and 
81.16 	(2) the county uses software that was validated by that
81.17 	task force.  A county that did not participate in the pilot
81.18 	project may record or file a real estate document
81.19 	electronically, if:
81.20 	(i) the document to be recorded or filed is of a type
81.21 	included in the pilot project for the electronic filing of real
81.22 	estate documents under the task force created in Laws 2000,
81.23 	chapter 391;
81.24 	(ii) the county complies with the standards adopted by the
81.25 	task force;
81.26 	(iii) the county uses software that was validated by the
81.27 	task force; and 
81.28 	(iv) the task force created under section 507.094 accepts
81.29 	by a vote of the task force a written certification of
81.30 	compliance by the county board and county recorder of the county
81.31 	to implement electronic filing under this section.
81.32 	(b) (c) The recording or filing fee for a document that
81.33 	does not conform to the standards in paragraph (a) shall be
81.34 	increased as provided in sections 357.18, subdivision 5; 508.82;
81.35 	and 508A.82.
81.36 	(c) (d) The recorder or registrar shall refund the
82.1 	recording or filing fee to the applicant if the real estate
82.2 	documents are not filed or registered within 30 days after
82.3 	receipt, or as otherwise provided by section 386.30.

82.4 	EFFECTIVE DATE. This section is effective the day
82.5 	following final enactment.

82.6 	Sec. 2. [507.094] ELECTRONIC REAL ESTATE RECORDING TASK
82.7 	FORCE.
82.8 		Subdivision 1.Creation; membership. (a) The Electronic
82.9 	Real Estate Recording Task Force is created to study and make
82.10 	recommendations for the establishment of a system for the
82.11 	electronic filing and recording of real estate documents.
82.12 	(b) The task force consists of 18 members.  The secretary
82.13 	of state shall serve as the chair of the task force.  The
82.14 	state's chief information officer, as designated under section
82.15 	16E.02, or the officer's designee, shall serve as the vice-chair
82.16 	of the task force.  Members who are appointed under this section
82.17 	shall serve for a term of three years beginning July 1, 2005.
82.18 	The task force must include:
82.19 	(1) four county government officials appointed by the
82.20 	Association of County Officers, including two county recorders,
82.21 	one county auditor, and one county treasurer;
82.22 	(2) two county board members recommended by the Association
82.23 	of Minnesota Counties and appointed by the chair, including one
82.24 	board member from within the seven-county metropolitan area and
82.25 	one board member from outside the seven-county metropolitan
82.26 	area;
82.27 	(3) seven members from the private sector recommended by
82.28 	their industries and appointed by the chair, including
82.29 	representatives of:
82.30 	(i) real estate attorneys, real estate agents, and public
82.31 	and private land surveyors;
82.32 	(ii) mortgage companies, and other real estate lenders; and 
82.33 	(iii) technical and industry experts in electronic commerce
82.34 	and electronic records management and preservation;
82.35 	(4) a representative selected by the Minnesota Historical
82.36 	Society; and 
83.1 	(5) two representatives of title companies.
83.2 	(c) The task force may refer items to subcommittees.  The
83.3 	chair shall appoint the membership of a subcommittee.  An
83.4 	individual may be appointed to serve on a subcommittee without
83.5 	serving on the task force.
83.6 		Subd. 2.Study and recommendations. (a) The task force
83.7 	shall complete the work of the task force created by Laws 2000,
83.8 	chapter 391, to study and make recommendations regarding
83.9 	implementation of a system for electronic filing and recording
83.10 	of real estate documents and shall consider:
83.11 	(1) technology and computer needs;
83.12 	(2) legal issues such as authenticity, security, timing and
83.13 	priority of recordings, and the relationship between electronic
83.14 	and paper recorder systems;
83.15 	(3) cost-effectiveness of electronic recording systems;
83.16 	(4) a timetable and plan for implementing an electronic
83.17 	recording system, considering types of documents and entities
83.18 	using the system and volume of recordings;
83.19 	(5) permissive versus mandatory systems; and 
83.20 	(6) other relevant issues identified by the task force.
83.21 	The task force shall review the Uniform Electronic
83.22 	Recording Act as drafted by the National Conference of
83.23 	Commissioners on Uniform State Laws and recommend alternative
83.24 	structures for the permanent Commission on Electronic Real
83.25 	Estate Recording Standards.
83.26 	(b) The task force may commence establishing standards for
83.27 	the electronic recording of the remaining residential real
83.28 	estate deed and mortgage documents and establish pilot projects
83.29 	to complete the testing and functions of the task force
83.30 	established in Laws 2000, chapter 391.
83.31 	(c) The task force shall submit a report to the legislature
83.32 	by January 15 of each year during its existence reporting on the
83.33 	progress toward the goals provided in this subdivision.
83.34 		Subd. 3.Donations; reimbursement. The task force may
83.35 	accept donations of money or resources, including loaned
83.36 	employees or other services.  The donations are appropriated to
84.1 	the task force and must be under the sole control of the task
84.2 	force.
84.3 		Subd. 4.Legislative coordinating commission;
84.4 	duties. The task force may contract with the Legislative
84.5 	Coordinating Commission for the provision of administrative
84.6 	services to the task force, the preparation of requests for
84.7 	proposal, or the disbursement of funds for the payment of
84.8 	vendors, salaries, and other expenses of the task force.
84.9 		Subd. 5.Expiration. The task force expires June 30,
84.10 	2008.
84.11 	
EFFECTIVE DATE. This section is effective July 1, 2005.

84.12 	Sec. 3. Minnesota Statutes 2004, section 507.24,
84.13 	subdivision 2, is amended to read:
84.14 		Subd. 2.Original signatures required. (a) Unless
84.15 	otherwise provided by law, an instrument affecting real estate
84.16 	that is to be recorded as provided in this section or other
84.17 	applicable law must contain the original signatures of the
84.18 	parties who execute it and of the notary public or other officer
84.19 	taking an acknowledgment.  However, a financing statement that
84.20 	is recorded as a filing pursuant to section 336.9-502(b) need
84.21 	not contain:  (1) the signatures of the debtor or the secured
84.22 	party; or (2) an acknowledgment.
84.23 	(b) Any electronic instruments, including signatures and
84.24 	seals, affecting real estate may only be recorded as part of a
84.25 	pilot project for the electronic filing of real estate documents
84.26 	implemented by the task force created in Laws 2000, chapter
84.27 	391., or by the Electronic Real Estate Recording Task Force
84.28 	created under section 507.094.  A county that participated in
84.29 	the pilot project for the electronic filing of real estate
84.30 	documents under the task force created in Laws 2000, chapter
84.31 	391, may continue to record or file documents electronically, if:
84.32 	(1) the county complies with standards adopted by the task
84.33 	force; and 
84.34 	(2) the county uses software that was validated by the task
84.35 	force.
84.36 	A county that did not participate in the pilot project may
85.1 	record or file a real estate document electronically, if:
85.2 	(i) the document to be recorded or filed is of a type
85.3 	included in the pilot project for the electronic filing of real
85.4 	estate documents under the task force created in Laws 2000,
85.5 	chapter 391;
85.6 	(ii) the county complies with the standards adopted by the
85.7 	task force;
85.8 	(iii) the county uses software that was validated by the
85.9 	task force; and 
85.10 	(iv) the task force created under section 507.094 accepts
85.11 	by a vote of the task force a written certification of
85.12 	compliance by the county board and county recorder of the county
85.13 	to implement electronic filing under this section.
85.14 	(c) Notices filed pursuant to section 168A.141,
85.15 	subdivisions 1 and 3, need not contain an acknowledgment.
85.16 	
EFFECTIVE DATE. This section is effective the day
85.17 	following final enactment.

85.18 	Sec. 4. APPROPRIATION.
 85.19 	$25,000 in fiscal year 2006 and $25,000 in fiscal year 2007
85.20 	are appropriated from the general fund to the Legislative
85.21 	Coordinating Commission for the task force under Minnesota
85.22 	Statutes, section 507.094, subdivision 4.  The base for this
85.23 	program is $25,000 in fiscal year 2008 and zero in future fiscal
85.24 	years.

85.25 	EFFECTIVE DATE. This section is effective July 1, 2005.

85.26 	ARTICLE 9
85.27 	ELECTIONS AND CAMPAIGN FINANCE

85.28 	Section 1. Minnesota Statutes 2004, section 3.02, is
85.29 	amended to read:
85.30 	3.02 EVIDENCE OF MEMBERSHIP.
85.31 	For all purposes of organization of either house of the
85.32 	legislature, a certificate of election to it, duly executed by
85.33 	the secretary of state, is prima facie evidence of the right to
85.34 	membership of the person named in it. The secretary of state
85.35 	shall issue the certificate of election in duplicate and shall
85.36 	file and retain one copy for the official records of the state
86.1 	and present one copy to each legislator.

86.2 	Sec. 2. Minnesota Statutes 2004, section 10A.01,
86.3 	subdivision 5, is amended to read:
86.4 		Subd. 5.Associated business.  "Associated business"
86.5 	means an association, corporation, partnership, limited
86.6 	liability company, limited liability partnership, or other
86.7 	organized legal entity from which the individual receives
86.8 	compensation in excess of $50, except for actual and reasonable
86.9 	expenses, in any month as a director, officer, owner, member,
86.10 	partner, employer or employee, or whose securities the
86.11 	individual holds worth $2,500 or more at fair market value.

86.12 	Sec. 3. Minnesota Statutes 2004, section 10A.01,
86.13 	subdivision 21, is amended to read:
86.14 		Subd. 21.Lobbyist.  (a) "Lobbyist" means an individual:
86.15 	(1) engaged for pay or other consideration of more than
86.16 	$3,000 from all sources in any year for the purpose of
86.17 	attempting to influence legislative or administrative action, or
86.18 	the official action of a metropolitan governmental unit, by
86.19 	communicating or urging others to communicate with public or
86.20 	local officials; or
86.21 	(2) who spends more than $250, not including the
86.22 	individual's own traveling expenses and membership dues, in any
86.23 	year for the purpose of attempting to influence legislative or
86.24 	administrative action, or the official action of a metropolitan
86.25 	governmental unit, by communicating or urging others to
86.26 	communicate with public or local officials.
86.27 	(b) "Lobbyist" does not include:
86.28 	(1) a public official;
86.29 	(2) an employee of the state, including an employee of any
86.30 	of the public higher education systems;
86.31 	(3) an elected local official;
86.32 	(4) a nonelected local official or an employee of a
86.33 	political subdivision acting in an official capacity, unless the
86.34 	nonelected official or employee of a political subdivision
86.35 	spends more than 50 ten hours in any month attempting to
86.36 	influence legislative or administrative action, or the official
87.1 	action of a metropolitan governmental unit other than the
87.2 	political subdivision employing the official or employee, by
87.3 	communicating or urging others to communicate with public or
87.4 	local officials, including time spent monitoring legislative or
87.5 	administrative action, or the official action of a metropolitan
87.6 	governmental unit, and related research, analysis, and
87.7 	compilation and dissemination of information relating to
87.8 	legislative or administrative policy in this state, or to the
87.9 	policies of metropolitan governmental units, but not including
87.10 	travel time related to these actions;
87.11 	(5) a party or the party's representative appearing in a
87.12 	proceeding before a state board, commission, or agency of the
87.13 	executive branch unless the board, commission, or agency is
87.14 	taking administrative action;
87.15 	(6) an individual while engaged in selling goods or
87.16 	services to be paid for by public funds;
87.17 	(7) a news medium or its employees or agents while engaged
87.18 	in the publishing or broadcasting of news items, editorial
87.19 	comments, or paid advertisements which directly or indirectly
87.20 	urge official action;
87.21 	(8) a paid expert witness whose testimony is requested by
87.22 	the body before which the witness is appearing, but only to the
87.23 	extent of preparing or delivering testimony; or
87.24 	(9) a party or the party's representative appearing to
87.25 	present a claim to the legislature and communicating to
87.26 	legislators only by the filing of a claim form and supporting
87.27 	documents and by appearing at public hearings on the claim.
87.28 	(c) An individual who volunteers personal time to work
87.29 	without pay or other consideration on a lobbying campaign, and
87.30 	who does not spend more than the limit in paragraph (a), clause
87.31 	(2), need not register as a lobbyist.
87.32 	(d) An individual who provides administrative support to a
87.33 	lobbyist and whose salary and administrative expenses
87.34 	attributable to lobbying activities are reported as lobbying
87.35 	expenses by the lobbyist, but who does not communicate or urge
87.36 	others to communicate with public or local officials, need not
88.1 	register as a lobbyist.

88.2 	Sec. 4. Minnesota Statutes 2004, section 10A.01,
88.3 	subdivision 23, is amended to read:
88.4 		Subd. 23.Major political party.  "Major political party"
88.5 	means:
88.6 	(1) a major political party as defined in section 200.02,
88.7 	subdivision 7.; or 
88.8 	(2) a political party that maintains a party organization
88.9 	in the state, political subdivision, or precinct in question and
88.10 	that has presented at least 45 candidates for election to the
88.11 	office of state representative, 23 candidates for election to
88.12 	the office of state senator, four candidates for the office of
88.13 	representative in Congress, and one candidate for each of the
88.14 	following offices:  governor and lieutenant governor, attorney
88.15 	general, secretary of state, and state auditor at the last
88.16 	preceding state general election for those offices.  A political
88.17 	party that presents the required candidates at a state general
88.18 	election described in this clause becomes a major political
88.19 	party as of January 1 following that election and retains its
88.20 	major party status notwithstanding that the party fails to
88.21 	present the required candidates at the following state general
88.22 	election.  A major political party that fails to present the
88.23 	required candidates at the following state general election
88.24 	loses major party status as of December 31 following the most
88.25 	recent state general election.

88.26 	Sec. 5. Minnesota Statutes 2004, section 10A.01,
88.27 	subdivision 26, is amended to read:
88.28 		Subd. 26.Noncampaign disbursement.  "Noncampaign
88.29 	disbursement" means a purchase or payment of money or anything
88.30 	of value made, or an advance of credit incurred, or a donation
88.31 	in kind received, by a principal campaign committee for any of
88.32 	the following purposes:
88.33 	(1) payment for accounting and legal services;
88.34 	(2) return of a contribution to the source;
88.35 	(3) repayment of a loan made to the principal campaign
88.36 	committee by that committee;
89.1 	(4) return of a public subsidy;
89.2 	(5) payment for food, beverages, entertainment, and
89.3 	facility rental for a fund-raising event;
89.4 	(6) services for a constituent by a member of the
89.5 	legislature or a constitutional officer in the executive branch,
89.6 	including the costs of preparing and distributing a suggestion
89.7 	or idea solicitation to constituents,performed from the
89.8 	beginning of the term of office to adjournment sine die of the
89.9 	legislature in the election year for the office held, and half
89.10 	the cost of services for a constituent by a member of the
89.11 	legislature or a constitutional officer in the executive branch
89.12 	performed from adjournment sine die to 60 days after adjournment
89.13 	sine die;
89.14 	(7) payment for food and beverages provided to campaign
89.15 	volunteers while they are engaged in campaign activities;
89.16 	(8) payment of expenses incurred by elected or appointed
89.17 	leaders of a legislative caucus in carrying out their leadership
89.18 	responsibilities;
89.19 	(9) payment by a principal campaign committee of the
89.20 	candidate's expenses for serving in public office, other than
89.21 	for personal uses;
89.22 	(10) costs of child care for the candidate's children when
89.23 	campaigning;
89.24 	(11) fees paid to attend a campaign school;
89.25 	(12) costs of a postelection party during the election year
89.26 	when a candidate's name will no longer appear on a ballot or the
89.27 	general election is concluded, whichever occurs first;
89.28 	(13) interest on loans paid by a principal campaign
89.29 	committee on outstanding loans;
89.30 	(14) filing fees;
89.31 	(15) post-general election thank-you notes or
89.32 	advertisements in the news media;
89.33 	(16) the cost of campaign material purchased to replace
89.34 	defective campaign material, if the defective material is
89.35 	destroyed without being used;
89.36 	(17) contributions to a party unit; and 
90.1 	(18) other purchases or payments specified in board rules
90.2 	or advisory opinions as being for any purpose other than to
90.3 	influence the nomination or election of a candidate or to
90.4 	promote or defeat a ballot question; and 
90.5 	(19) payments for attending a state or national convention
90.6 	and payments for funeral gifts or memorials.
90.7 	The board must determine whether an activity involves a
90.8 	noncampaign disbursement within the meaning of this subdivision.
90.9 	A noncampaign disbursement is considered to be made in the
90.10 	year in which the candidate made the purchase of goods or
90.11 	services or incurred an obligation to pay for goods or services.
90.12 	
EFFECTIVE DATE. This section is effective retroactive to
90.13 	February 28, 1978.

90.14 	Sec. 6. Minnesota Statutes 2004, section 10A.025, is
90.15 	amended by adding a subdivision to read:
90.16 		Subd. 1a.Electronic filing. A report or statement
90.17 	required to be filed under this chapter may be filed
90.18 	electronically.  The board shall adopt rules to regulate
90.19 	electronic filing and to ensure that the electronic filing
90.20 	process is secure.

90.21 	Sec. 7. Minnesota Statutes 2004, section 10A.071,
90.22 	subdivision 3, is amended to read:
90.23 		Subd. 3.Exceptions.  (a) The prohibitions in this
90.24 	section do not apply if the gift is:
90.25 	(1) a contribution as defined in section 10A.01,
90.26 	subdivision 11;
90.27 	(2) services to assist an official in the performance of
90.28 	official duties, including but not limited to providing advice,
90.29 	consultation, information, and communication in connection with
90.30 	legislation, and services to constituents;
90.31 	(3) services of insignificant monetary value;
90.32 	(4) a plaque or similar memento recognizing individual
90.33 	services in a field of specialty or to a charitable cause;
90.34 	(5) a trinket or memento of insignificant value;
90.35 	(6) informational material of unexceptional value; or 
90.36 	(7) food or a beverage given at a reception, meal, or
91.1 	meeting away from the recipient's place of work by an
91.2 	organization before whom the recipient appears to make a speech
91.3 	or answer questions as part of a program; or 
91.4 	(8) food or a beverage of a nominal value given at a
91.5 	reception to which all relevant members of the legislature have
91.6 	been invited.
91.7 	(b) The prohibitions in this section do not apply if the
91.8 	gift is given:
91.9 	(1) because of the recipient's membership in a group, a
91.10 	majority of whose members are not officials, and an equivalent
91.11 	gift is given to the other members of the group; or
91.12 	(2) by a lobbyist or principal who is a member of the
91.13 	family of the recipient, unless the gift is given on behalf of
91.14 	someone who is not a member of that family.

91.15 	Sec. 8. Minnesota Statutes 2004, section 10A.08, is
91.16 	amended to read:
91.17 	10A.08 REPRESENTATION DISCLOSURE.
91.18 	A public official who represents a client for a fee before
91.19 	an individual, board, commission, or agency that has rulemaking
91.20 	authority in a hearing conducted under chapter 14, must disclose
91.21 	the official's participation in the action to the board within
91.22 	14 days after the appearance.  The board must send a notice by
91.23 	certified mail to any public official who fails to disclose the
91.24 	participation within 14 days after the appearance.  If the
91.25 	public official fails to disclose the participation within ten
91.26 	business days after the notice was sent, the board may impose a
91.27 	late filing fee of $5 per day, not to exceed $100, starting on
91.28 	the 11th day after the notice was sent. The board must send an
91.29 	additional notice by certified mail to a public official who
91.30 	fails to disclose the participation within 14 days after the
91.31 	first notice was sent by the board that the public official may
91.32 	be subject to a civil penalty for failure to disclose the
91.33 	participation.  A public official who fails to disclose the
91.34 	participation within seven days after the second notice was sent
91.35 	by the board is subject to a civil penalty imposed by the board
91.36 	of up to $1,000.

92.1 	Sec. 9. [10A.175] EXPENDITURES FOR HOUSING.
92.2 	A legislator may use funds from the legislator's principal
92.3 	campaign committee to pay for housing expenses incurred due to
92.4 	attending a session of the legislature.  These expenditures are
92.5 	noncampaign disbursements.

92.6 	Sec. 10. Minnesota Statutes 2004, section 10A.20,
92.7 	subdivision 2, is amended to read:
92.8 		Subd. 2.Time for filing.  (a) The reports must be filed
92.9 	with the board on or before January 31 of each year and
92.10 	additional reports must be filed as required and in accordance
92.11 	with paragraphs (b) and (c).
92.12 	(b) In each year in which the name of the candidate is on
92.13 	the ballot, the report of the principal campaign committee must
92.14 	be filed 15 days before a primary and ten days before a general
92.15 	election, seven days before a special primary and a special
92.16 	election, and ten days after a special election cycle, except as
92.17 	otherwise provided by subdivision 3b.
92.18 	(c) In each general election year, a political committee,
92.19 	political fund, or party unit must file reports 15 days before a
92.20 	primary and ten days before a general election.

92.21 	Sec. 11. Minnesota Statutes 2004, section 10A.20, is
92.22 	amended by adding a subdivision to read:
92.23 		Subd. 3b.Report by candidate without primary
92.24 	opposition. Notwithstanding the provisions of subdivision 3, if
92.25 	a candidate does not have an opponent at a primary or special
92.26 	primary, the candidate's principal campaign committee must file,
92.27 	15 days before a primary and seven days before a special
92.28 	primary, a report containing only the following:
92.29 	(1) the amount of liquid assets on hand at the beginning of
92.30 	the reporting period;
92.31 	(2) the sum of contributions to the principal campaign
92.32 	committee during the reporting period;
92.33 	(3) the sum of all expenditures made by or on behalf of the
92.34 	principal campaign committee during the reporting period; and 
92.35 	(4) the information required by subdivision 3, paragraph
92.36 	(b).

93.1 	Sec. 12. Minnesota Statutes 2004, section 10A.20,
93.2 	subdivision 5, is amended to read:
93.3 		Subd. 5.Preelection reports.  In a statewide election
93.4 	any loan, contribution, or contributions from any one source
93.5 	totaling $2,000 or more, or in any judicial district or
93.6 	legislative election totaling more than $400, received between
93.7 	the last day covered in the last report before an election and
93.8 	the election must be reported to the board in one of the
93.9 	following ways:
93.10 	(1) in person within 48 hours after its receipt;
93.11 	(2) by telegram or mailgram within 48 hours after its
93.12 	receipt; or 
93.13 	(3) by certified mail sent within 48 hours after its
93.14 	receipt; or 
93.15 	(4) by electronic means sent within 48 hours after its
93.16 	receipt.
93.17 	These loans and contributions must also be reported in the
93.18 	next required report.
93.19 	The 48-hour notice requirement does not apply with respect
93.20 	to a primary in which the statewide or legislative candidate is
93.21 	unopposed.

93.22 	Sec. 13. Minnesota Statutes 2004, section 10A.27,
93.23 	subdivision 1, is amended to read:
93.24 		Subdivision 1.Contribution limits.  (a) Except as
93.25 	provided in subdivision 2, a candidate must not permit the
93.26 	candidate's principal campaign committee to accept aggregate
93.27 	contributions made or delivered by any individual, political
93.28 	committee, or political fund in excess of the following:
93.29 	(1) to candidates for governor and lieutenant governor
93.30 	running together, $2,000 in an election year for the office
93.31 	sought and $500 in other years;
93.32 	(2) to a candidate for attorney general, $1,000 in an
93.33 	election year for the office sought and $200 in other years;
93.34 	(3) to a candidate for the office of secretary of state or
93.35 	state auditor, $500 in an election year for the office sought
93.36 	and $100 in other years;
94.1 	(4) to a candidate for state senator, $500 in an election
94.2 	year for the office sought and $100 in other years; and
94.3 	(5) to a candidate for state representative, $500 in an
94.4 	election year for the office sought and $100 in the other year.
94.5 	(b) The following deliveries are not subject to the
94.6 	bundling limitation in this subdivision:
94.7 	(1) delivery of contributions collected by a member of the
94.8 	candidate's principal campaign committee, such as a block worker
94.9 	or a volunteer who hosts a fund-raising event, to the
94.10 	committee's treasurer; and
94.11 	(2) a delivery made by an individual on behalf of the
94.12 	individual's spouse.
94.13 	(c) A lobbyist,political committee, political party unit,
94.14 	or political fund must not make a contribution a candidate is
94.15 	prohibited from accepting.

94.16 	Sec. 14. Minnesota Statutes 2004, section 10A.28,
94.17 	subdivision 2, is amended to read:
94.18 		Subd. 2.Exceeding contribution limits. A political
94.19 	committee, political fund, or principal campaign committee that
94.20 	makes a contribution, or a candidate who permits the candidate's
94.21 	principal campaign committee to accept contributions, in excess
94.22 	of the limits imposed by section 10A.27 is subject to a civil
94.23 	penalty of up to four times the amount by which the contribution
94.24 	exceeded the limits.The following are subject to a civil
94.25 	penalty of up to four times the amount by which a contribution
94.26 	exceeds the applicable limits:
94.27 	(1) a lobbyist, political committee, or political fund that
94.28 	makes a contribution in excess of the limits imposed by section
94.29 	10A.27, subdivisions 1 and 8;
94.30 	(2) a principal campaign committee that makes a
94.31 	contribution in excess of the limits imposed by section 10A.27,
94.32 	subdivision 2;
94.33 	(3) a political party unit that makes a contribution in
94.34 	excess of the limits imposed by section 10A.27, subdivisions 2
94.35 	and 8; or 
94.36 	(4) a candidate who permits the candidate's principal
95.1 	campaign committee to accept contributions in excess of the
95.2 	limits imposed by section 10A.27.

95.3 	Sec. 15. Minnesota Statutes 2004, section 10A.31,
95.4 	subdivision 1, is amended to read:
95.5 		Subdivision 1.Designation.  An individual resident of
95.6 	this state who files an income tax return or a renter and
95.7 	homeowner property tax refund return with the commissioner of
95.8 	revenue may designate on their original return that $5 be paid
95.9 	from the general fund of the state $1 to $25, or $1 to $50 if
95.10 	the return is filed jointly, be added to the tax or deducted
95.11 	from the refund that would otherwise be payable by or to the
95.12 	individual and paid into the state elections campaign fund. If
95.13 	a husband and wife file a joint return, each spouse may
95.14 	designate that $5 be paid.  No individual is allowed to
95.15 	designate $5 more than once in any year.The taxpayer may
95.16 	designate that the amount be paid into the account of a
95.17 	political party or into the general account. Designations made
95.18 	under this section are not eligible for refund under section
95.19 	290.06, subdivision 23.
95.20 	
EFFECTIVE DATE. This section is effective beginning with
95.21 	designations made on income tax returns filed for tax years
95.22 	beginning after December 31, 2004, and property tax refund
95.23 	returns based on property taxes payable in 2006 or rent
95.24 	constituting property taxes paid in 2005.

95.25 	Sec. 16. Minnesota Statutes 2004, section 10A.31,
95.26 	subdivision 3, is amended to read:
95.27 		Subd. 3.Form.  The commissioner of revenue must provide
95.28 	on the first page of the income tax form and the renter and
95.29 	homeowner property tax refund return a space for the individual
95.30 	to indicate a wish to pay $5 ($10 $1 to $25, or $1 to $50 if
95.31 	filing a joint return ) from the general fund of the state ,to
95.32 	finance election campaigns.  The form must also contain language
95.33 	prepared by the commissioner that permits the individual to
95.34 	direct the state to pay the $5 (or $10 if filing a joint return) 
95.35 	designation to:  (1) one of the major political parties; (2) any
95.36 	minor political party that qualifies under subdivision 3a; or
96.1 	(3) all qualifying candidates as provided by subdivision 7. The
96.2 	renter and homeowner property tax refund return must include
96.3 	instructions that the individual filing the return may designate
96.4 	$5 on the return only if the individual has not designated $5 on
96.5 	the income tax return.
96.6 	
EFFECTIVE DATE. This section is effective beginning with
96.7 	designations made on income tax returns filed for tax years
96.8 	beginning after December 31, 2004, and property tax refund
96.9 	returns based on property taxes payable in 2006 or rent
96.10 	constituting property taxes paid in 2005.

96.11 	Sec. 17. Minnesota Statutes 2004, section 10A.31,
96.12 	subdivision 4, is amended to read:
96.13 		Subd. 4.Appropriation. (a) The amounts designated by
96.14 	individuals for the state elections campaign fund, less three
96.15 	percent, are appropriated from the general fund,must be
96.16 	transferred and credited to the appropriate account in the state
96.17 	elections campaign fund, and are annually appropriated for
96.18 	distribution as set forth in subdivisions 5, 5a, 6, and 7.  The
96.19 	remaining three percent must be kept in the general state
96.20 	elections campaign fund for administrative costs.
96.21 	(b) In addition to the amounts in paragraph (a), $1,500,000
96.22 	for each general election is appropriated from the general fund
96.23 	for transfer to the general account of the state elections
96.24 	campaign fund.
96.25 	Of this appropriation, $65,000 each fiscal year must be set
96.26 	aside to pay assessments made by the Office of Administrative
96.27 	Hearings under section 211B.37.  Amounts remaining after all
96.28 	assessments have been paid must be canceled to the general
96.29 	account.
96.30 	
EFFECTIVE DATE. The changes to paragraph (a) are
96.31 	effective beginning with designations made on income tax returns
96.32 	filed for tax years beginning after December 31, 2004, and
96.33 	property tax refund returns based on property taxes payable in
96.34 	2006 or rent constituting property taxes paid in 2005.  The
96.35 	changes to paragraph (b) are effective for appropriations for
96.36 	general elections occurring after December 31, 2004.

97.1 	Sec. 18. Minnesota Statutes 2004, section 10A.31,
97.2 	subdivision 5, is amended to read:
97.3 		Subd. 5.Allocation.  (a)  [GENERAL ACCOUNT.] In each
97.4 	calendar year the money in the general account must be allocated
97.5 	to candidates as follows:
97.6 	(1) 21 percent for the offices of governor and lieutenant
97.7 	governor together;
97.8 	(2) 4.2 percent for the office of attorney general;
97.9 	(3) 2.4 percent each for the offices of secretary of state
97.10 	and state auditor;
97.11 	(4) in each calendar year during the period in which state
97.12 	senators serve a four-year term, 23-1/3 percent for the office
97.13 	of state senator, and 46-2/3 percent for the office of state
97.14 	representative; and
97.15 	(5) in each calendar year during the period in which state
97.16 	senators serve a two-year term, 35 percent each for the offices
97.17 	of state senator and state representative.
97.18 	(b)  [PARTY ACCOUNT.] In each calendar year the money in
97.19 	each party account must be allocated as follows:
97.20 	(1) 14 percent for the offices of governor and lieutenant
97.21 	governor together;
97.22 	(2) 2.8 percent for the office of attorney general;
97.23 	(3) 1.6 percent each for the offices of secretary of state
97.24 	and state auditor;
97.25 	(4) in each calendar year during the period in which state
97.26 	senators serve a four-year term, 23-1/3 28-1/3 percent for the
97.27 	office of state senator, and 46-2/3 51-2/3 percent for the
97.28 	office of state representative; and 
97.29 	(5) in each calendar year during the period in which state
97.30 	senators serve a two-year term, 35 40 percent each for the
97.31 	offices of state senator and state representative; and 
97.32 	(6) ten percent for the state committee of a political
97.33 	party.
97.34 	Money allocated to each state committee under clause (6)
97.35 	must be deposited in a separate account and must be spent for
97.36 	only those items enumerated in section 10A.275.  Money allocated
98.1 	to a state committee under clause (6) must be paid to the
98.2 	committee by the board as it is received in the account on a
98.3 	monthly basis, with payment on the 15th day of the calendar
98.4 	month following the month in which the returns were processed by
98.5 	the Department of Revenue, provided that these distributions
98.6 	would be equal to 90 percent of the amount of money indicated in
98.7 	the Department of Revenue's weekly unedited reports of income
98.8 	tax returns and property tax refund returns processed in the
98.9 	month, as notified by the Department of Revenue to the board.
98.10 	The amounts paid to each state committee are subject to biennial
98.11 	adjustment and settlement at the time of each certification
98.12 	required of the commissioner of revenue under subdivisions 7 and
98.13 	10.  If the total amount of payments received by a state
98.14 	committee for the period reflected on a certification by the
98.15 	Department of Revenue is different from the amount that should
98.16 	have been received during the period according to the
98.17 	certification, each subsequent monthly payment must be increased
98.18 	or decreased to the fullest extent possible until the amount of
98.19 	the overpayment is recovered or the underpayment is distributed.

98.20 	Sec. 19. Minnesota Statutes 2004, section 10A.31,
98.21 	subdivision 6a, is amended to read:
98.22 		Subd. 6a.Party account money not distributed.  Money
98.23 	from a party account not distributed to candidates for state
98.24 	senator or representative in any election year must be returned
98.25 	to the general fund of the state, except that the subsidy from
98.26 	the party account an unopposed candidate would otherwise have
98.27 	been eligible to receive must be paid to the state committee of
98.28 	the candidate's political party to be deposited in a special
98.29 	account under subdivision 5, paragraph (b), clause (6),and used
98.30 	for only those items permitted under section 10A.275.  Money
98.31 	from a party account not distributed to candidates for other
98.32 	offices in an election year must be returned to the party
98.33 	account for reallocation to candidates as provided in
98.34 	subdivision 5, paragraph (b), in the following year.

98.35 	Sec. 20. [10A.375] EXPENDITURES FOR FOOD.
98.36 	A legislative candidate may use funds from the candidate's
99.1 	principal campaign committee to pay for food consumed by the
99.2 	candidate while campaigning.  These expenditures are noncampaign
99.3 	disbursements.

99.4 	Sec. 21. Minnesota Statutes 2004, section 200.02,
99.5 	subdivision 7, is amended to read:
99.6 		Subd. 7.Major political party.  (a) "Major political
99.7 	party" means a political party that maintains a party
99.8 	organization in the state, political division or precinct in
99.9 	question and that has presented at least one candidate for
99.10 	election to the office of:
99.11 	(1) governor and lieutenant governor, secretary of state,
99.12 	state auditor, or attorney general at the last preceding state
99.13 	general election for those offices; or
99.14 	(2) presidential elector or U.S. senator at the last
99.15 	preceding state general election for presidential electors; and
99.16 	whose candidate received votes in each county in that
99.17 	election and received votes from not less than five percent of
99.18 	the total number of individuals who voted in that election.
99.19 	(b) "Major political party" also means a political party
99.20 	that maintains a party organization in the state, political
99.21 	subdivision, or precinct in question and whose members present
99.22 	to the secretary of state at any time before the close of filing
99.23 	for the state partisan primary ballot a petition for a place on
99.24 	the state partisan primary ballot, which petition contains
99.25 	signatures of a number of the party members equal to at least
99.26 	five percent of the total number of individuals who voted in the
99.27 	preceding state general election.
99.28 	(c) A political party whose candidate receives a sufficient
99.29 	number of votes at a state general election described in
99.30 	paragraph (a) becomes a major political party as of January 1
99.31 	following that election and retains its major party status
99.32 	notwithstanding that for at least two state general elections
99.33 	even if the party fails to present a candidate who receives the
99.34 	number and percentage of votes required under paragraph (a)
99.35 	at the following subsequent state general election elections.
99.36 	(d) A major political party whose candidates fail to
100.1 	receive the number and percentage of votes required under
100.2 	paragraph (a) at either each of two consecutive state general
100.3 	election elections described by paragraph (a) loses major party
100.4 	status as of December 31 following the most recent later of the
100.5 	two consecutive state general election elections.

100.6 	Sec. 22. Minnesota Statutes 2004, section 200.02,
100.7 	subdivision 23, is amended to read:
100.8 		Subd. 23.Minor political party.  (a) "Minor political
100.9 	party" means a political party that is not a major political
100.10 	party as defined by subdivision 7 and that has adopted a state
100.11 	constitution, designated a state party chair, held a state
100.12 	convention in the last two years, filed with the secretary of
100.13 	state no later than December 31 following the most recent state
100.14 	general election a certification that the party has met the
100.15 	foregoing requirements, and met the requirements of paragraph
100.16 	(b) or (e), as applicable.
100.17 	(b) To be considered a minor party in all elections
100.18 	statewide, the political party must have presented at least one
100.19 	candidate for election to the office of:
100.20 	(1) governor and lieutenant governor, secretary of state,
100.21 	state auditor, or attorney general, at the last preceding state
100.22 	general election for those offices; or
100.23 	(2) presidential elector or U.S. senator at the preceding
100.24 	state general election for presidential electors; and
100.25 	who received votes in each county that in the aggregate equal at
100.26 	least one percent of the total number of individuals who voted
100.27 	in the election, or its members must have presented to the
100.28 	secretary of state at any time before the close of filing for
100.29 	the state partisan primary ballot a nominating petition in a
100.30 	form prescribed by the secretary of state containing the
100.31 	signatures of party members in a number equal to at least one
100.32 	percent of the total number of individuals who voted in the
100.33 	preceding state general election.
100.34 	(c) A political party whose candidate receives a sufficient
100.35 	number of votes at a state general election described in
100.36 	paragraph (b) becomes a minor political party as of January 1
101.1 	following that election and retains its minor party status
101.2 	notwithstanding that for at least two state general elections
101.3 	even if the party fails to present a candidate who receives the
101.4 	number and percentage of votes required under paragraph (b)
101.5 	at the following subsequent state general election elections.
101.6 	(d) A minor political party whose candidates fail to
101.7 	receive the number and percentage of votes required under
101.8 	paragraph (b) at either each of two consecutive state general
101.9 	election elections described by paragraph (b) loses minor party
101.10 	status as of December 31 following the most recent later of the
101.11 	two consecutive state general election elections.
101.12 	(e) To be considered a minor party in an election in a
101.13 	legislative district, the political party must have presented at
101.14 	least one candidate for a legislative office in that district
101.15 	who received votes from at least ten percent of the total number
101.16 	of individuals who voted for that office, or its members must
101.17 	have presented to the secretary of state a nominating petition
101.18 	in a form prescribed by the secretary of state containing the
101.19 	signatures of party members in a number equal to at least ten
101.20 	percent of the total number of individuals who voted in the
101.21 	preceding state general election for that legislative office.

101.22 	Sec. 23. Minnesota Statutes 2004, section 200.02, is
101.23 	amended by adding a subdivision to read:
101.24 		Subd. 24.Metropolitan area. "Metropolitan area" means
101.25 	the counties of Ramsey, Hennepin, Anoka, Washington, Dakota,
101.26 	Scott, Carver, Wright, Sherburne, Isanti, and Chisago.

101.27 	Sec. 24. Minnesota Statutes 2004, section 201.022, is
101.28 	amended by adding a subdivision to read:
101.29 		Subd. 3.Consultation with local
101.30 	officials. Representatives of local election officials shall be
101.31 	consulted in the development of the statewide voter registration
101.32 	system.
101.33 	
EFFECTIVE DATE. This section is effective the day
101.34 	following final enactment.

101.35 	Sec. 25. Minnesota Statutes 2004, section 201.061,
101.36 	subdivision 3, is amended to read:
102.1 		Subd. 3.Election day registration.  An individual who is
102.2 	eligible to vote may register on election day by appearing in
102.3 	person at the polling place for the precinct in which the
102.4 	individual maintains residence, by completing a registration
102.5 	application, making an oath in the form prescribed by the
102.6 	secretary of state and providing proof of residence.  An
102.7 	individual may prove residence for purposes of registering by:
102.8 	(1) presenting a driver's license or Minnesota
102.9 	identification card issued pursuant to section 171.07;
102.10 	(2) presenting any document approved by the secretary of
102.11 	state as proper identification;
102.12 	(3) presenting one of the following:
102.13 	(i) a current valid student identification card from a
102.14 	postsecondary educational institution in Minnesota, if a list of
102.15 	students from that institution has been prepared under section
102.16 	135A.17 and certified to the county auditor in the manner
102.17 	provided in rules of the secretary of state; or
102.18 	(ii) a current student fee statement that contains the
102.19 	student's valid address in the precinct together with a picture
102.20 	identification card; or
102.21 	(4) having a voter who is registered to vote in the
102.22 	precinct sign an oath in the presence of the election judge
102.23 	vouching that the voter personally knows that the individual is
102.24 	a resident of the precinct.  A voter who has been vouched for on
102.25 	election day may not sign a proof of residence oath vouching for
102.26 	any other individual on that election day. A voter who is
102.27 	registered to vote in the precinct may sign up to 15
102.28 	proof-of-residence oaths on any election day.  The oath required
102.29 	by this subdivision and Minnesota Rules, part 8200.9939, must be
102.30 	attached to the voter registration application and the
102.31 	information on the oath must be recorded on the records of both
102.32 	the voter registering on election day and the voter who is
102.33 	vouching for the person's residence, and entered into the
102.34 	statewide voter registration system by the county auditor when
102.35 	the voter registration application is entered into that system.
102.36 	For tribal band members living on an Indian reservation, an
103.1 	individual may prove residence for purposes of registering by
103.2 	presenting an identification card issued by the tribal
103.3 	government of a tribe recognized by the Bureau of Indian
103.4 	Affairs, United States Department of the Interior, that contains
103.5 	the name, street address, signature, and picture of the
103.6 	individual. The county auditor of each county having territory
103.7 	within the reservation shall maintain a record of the number of
103.8 	election day registrations accepted under this section.
103.9 	A county, school district, or municipality may require that
103.10 	an election judge responsible for election day registration
103.11 	initial each completed registration application.

103.12 	Sec. 26. Minnesota Statutes 2004, section 201.071,
103.13 	subdivision 1, is amended to read:
103.14 		Subdivision 1.Form.  A voter registration application
103.15 	must be of suitable size and weight for mailing and contain
103.16 	spaces for the following required information:  voter's first
103.17 	name, middle name, and last name; voter's previous name, if any;
103.18 	voter's current address; voter's previous address, if any;
103.19 	voter's date of birth; voter's municipality and county of
103.20 	residence; voter's telephone number, if provided by the voter;
103.21 	date of registration; current and valid Minnesota driver's
103.22 	license number or Minnesota state identification number, or if
103.23 	the voter has no current and valid Minnesota driver's license or
103.24 	Minnesota state identification, the last four digits of the
103.25 	voter's Social Security number; and voter's signature.  The
103.26 	registration application may include the voter's e-mail address,
103.27 	if provided by the voter, and the voter's interest in serving as
103.28 	an election judge, if indicated by the voter.  The application
103.29 	must also contain the following certification of voter
103.30 	eligibility:
103.31 	"I certify that I:
103.32 	(1) will be at least 18 years old on election day;
103.33 	(2) am a citizen of the United States;
103.34 	(3) will have resided in Minnesota for 20 days immediately
103.35 	preceding election day;
103.36 	(4) maintain residence at the address given on the
104.1 	registration form;
104.2 	(5) am not under court-ordered guardianship of the person
104.3 	where I have not retained the right to vote;
104.4 	(6) have not been found by a court to be legally
104.5 	incompetent to vote;
104.6 	(7) have not been convicted of a felony without having my
104.7 	civil rights restored; and
104.8 	(8) have read and understand the following statement:  that
104.9 	giving false information is a felony punishable by not more than
104.10 	five years imprisonment or a fine of not more than $10,000, or
104.11 	both."
104.12 	The certification must include boxes for the voter to
104.13 	respond to the following questions:
104.14 	"(1) Are you a citizen of the United States?" and
104.15 	"(2) Will you be 18 years old on or before election day?"
104.16 	And the instruction:
104.17 	"If you checked 'no' to either of these questions, do not
104.18 	complete this form."
104.19 	The form of the voter registration application and the
104.20 	certification of voter eligibility must be as provided in this
104.21 	subdivision and approved by the secretary of state.  Voter
104.22 	registration forms authorized by the National Voter Registration
104.23 	Act may must also be accepted as valid. The federal postcard
104.24 	application form must also be accepted as valid if it is not
104.25 	deficient and the voter is eligible to register in Minnesota.
104.26 	An individual may use a voter registration application to
104.27 	apply to register to vote in Minnesota or to change information
104.28 	on an existing registration.

104.29 	Sec. 27. Minnesota Statutes 2004, section 201.091,
104.30 	subdivision 5, is amended to read:
104.31 		Subd. 5.Copy of list to registered voter.  The county
104.32 	auditors and the secretary of state shall provide copies of the
104.33 	public information lists in electronic or other media to any
104.34 	voter registered in Minnesota within ten days of receiving a
104.35 	written or electronic request accompanied by payment of the cost
104.36 	of reproduction.  The county auditors and the secretary of state
105.1 	shall make a copy of the list available for public inspection
105.2 	without cost.  An individual who inspects or acquires a copy of
105.3 	a public information list may not use any information contained
105.4 	in it for purposes unrelated to elections, political activities,
105.5 	or law enforcement.

105.6 	Sec. 28. Minnesota Statutes 2004, section 203B.01,
105.7 	subdivision 3, is amended to read:
105.8 		Subd. 3.Military.  "Military" means the Army, Navy, Air
105.9 	Force, Marine Corps, Coast Guard or Merchant Marine of the
105.10 	United States, and all other uniformed services as defined in
105.11 	United States Code, title 42, section 1973ff-6.

105.12 	Sec. 29. Minnesota Statutes 2004, section 203B.02,
105.13 	subdivision 1, is amended to read:
105.14 		Subdivision 1.unable to go to absence from polling
105.15 	place. (a) Any eligible voter who reasonably expects to be
105.16 	unable to go to absent from the polling place on election day in
105.17 	the precinct where the individual maintains residence because of
105.18 	absence from the precinct, illness, disability, religious
105.19 	discipline, observance of a religious holiday, or service as an
105.20 	election judge in another precinct may vote by absentee ballot 
105.21 	in person at any location where absentee ballots may be cast
105.22 	pursuant to sections 203B.081 and 203B.085, during the 18 days
105.23 	preceding any election.  This subdivision does not apply to a
105.24 	special election to fill a vacancy in office pursuant to
105.25 	sections 204D.17 to 204D.27 not held concurrently with a state
105.26 	primary or general election as provided in sections 203B.04 to
105.27 	203B.15.
105.28 	(b) Any eligible voter who reasonably expects to be unable
105.29 	to go to the polling place on election day in the precinct where
105.30 	the individual maintains residence because of absence from the
105.31 	precinct, illness, disability, religious discipline, observance
105.32 	of a religious holiday, or service as an election judge in
105.33 	another precinct may vote by absentee ballot as provided in
105.34 	sections 203B.04 to 203B.15.

105.35 	Sec. 30. Minnesota Statutes 2004, section 203B.04,
105.36 	subdivision 1, is amended to read:
106.1 		Subdivision 1.Application procedures.  Except as
106.2 	otherwise allowed by subdivision 2, an application for absentee
106.3 	ballots for any election may be submitted at any time not less
106.4 	than one day before the day of that election.  The county
106.5 	auditor shall prepare absentee ballot application forms in the
106.6 	format provided in the rules of by the secretary of state,
106.7 	notwithstanding rules on absentee ballot forms,and shall
106.8 	furnish them to any person on request. By January 1 of each
106.9 	even-numbered year, the secretary of state shall make the forms
106.10 	to be used available to auditors through electronic means.An
106.11 	application submitted pursuant to this subdivision shall be in
106.12 	writing and shall be submitted to:
106.13 	(a) the county auditor of the county where the applicant
106.14 	maintains residence; or
106.15 	(b) the municipal clerk of the municipality, or school
106.16 	district if applicable, where the applicant maintains residence.
106.17 	An application shall be approved if it is timely received,
106.18 	signed and dated by the applicant, contains the applicant's name
106.19 	and residence and mailing addresses, and states that the
106.20 	applicant is eligible to vote by absentee ballot for one of the
106.21 	reasons specified in section 203B.02.  The application may
106.22 	contain a request for the voter's date of birth, which must not
106.23 	be made available for public inspection.  An application may be
106.24 	submitted to the county auditor or municipal clerk by an
106.25 	electronic facsimile device.  An application mailed or returned
106.26 	in person to the county auditor or municipal clerk on behalf of
106.27 	a voter by a person other than the voter must be deposited in
106.28 	the mail or returned in person to the county auditor or
106.29 	municipal clerk within ten days after it has been dated by the
106.30 	voter and no later than six days before the election.  The
106.31 	absentee ballot applications or a list of persons applying for
106.32 	an absentee ballot may not be made available for public
106.33 	inspection until the close of voting on election day.
106.34 	An application under this subdivision may contain an
106.35 	application under subdivision 5 to automatically receive an
106.36 	absentee ballot application.

107.1 	Sec. 31. Minnesota Statutes 2004, section 203B.04,
107.2 	subdivision 4, is amended to read:
107.3 		Subd. 4.Registration at time of application.  An
107.4 	eligible voter who is not registered to vote but who is
107.5 	otherwise eligible to vote by absentee ballot may register by
107.6 	including a completed voter registration card with the absentee
107.7 	ballot.  The individual shall present proof of residence as
107.8 	required by section 201.061, subdivision 3, to the individual
107.9 	who witnesses the marking of the absentee ballots. A military
107.10 	voter, as defined in section 203B.01, may register in this
107.11 	manner if voting pursuant to sections 203B.04 to 203B.15, or may
107.12 	register pursuant to sections 203B.16 to 203B.27.

107.13 	Sec. 32. Minnesota Statutes 2004, section 203B.04, is
107.14 	amended by adding a subdivision to read:
107.15 		Subd. 6.Ongoing absentee status; termination. (a) An
107.16 	eligible voter may apply to a county auditor or municipal clerk
107.17 	for status as an ongoing absentee voter who reasonably expects
107.18 	to meet the requirements of section 203B.02, subdivision 1.
107.19 	Each applicant must automatically be provided with an absentee
107.20 	ballot application for each ensuing election other than an
107.21 	election by mail conducted under section 204B.45, and must have
107.22 	the status of ongoing absentee voter indicated on the voter's
107.23 	registration record.
107.24 	(b) Ongoing absentee voter status ends on:
107.25 	(1) the voter's written request;
107.26 	(2) the voter's death;
107.27 	(3) return of an ongoing absentee ballot as undeliverable;
107.28 	(4) a change in the voter's status so that the voter is not
107.29 	eligible to vote under section 201.15 or 201.155; or 
107.30 	(5) placement of the voter's registration on inactive
107.31 	status under section 201.171.

107.32 	Sec. 33. Minnesota Statutes 2004, section 203B.07,
107.33 	subdivision 2, is amended to read:
107.34 		Subd. 2.Design of envelopes.  The return envelope shall
107.35 	be of sufficient size to conveniently enclose and contain the
107.36 	ballot envelope and a voter registration card folded along its
108.1 	perforations.  The return envelope shall be designed to open on
108.2 	the left-hand end and, notwithstanding any rule to the contrary,
108.3 	the design must provide an additional flap that when sealed,
108.4 	conceals the signature, identification, and other information.
108.5 	Election officials may open the flap at any time after receiving
108.6 	the returned ballot to inspect the returned certificate for
108.7 	completeness or to ascertain other information.  A certificate
108.8 	of eligibility to vote by absentee ballot shall be printed on
108.9 	the right hand three-fourths of the back of the envelope.  The
108.10 	certificate shall contain a statement to be signed and sworn by
108.11 	the voter indicating that the voter meets all of the
108.12 	requirements established by law for voting by absentee ballot.
108.13 	The certificate shall also contain a statement signed by a
108.14 	person who is registered to vote in Minnesota or by a notary
108.15 	public or other individual authorized to administer oaths
108.16 	stating that:
108.17 	(a) the ballots were displayed to that individual unmarked;
108.18 	(b) the voter marked the ballots in that individual's
108.19 	presence without showing how they were marked, or, if the voter
108.20 	was physically unable to mark them, that the voter directed
108.21 	another individual to mark them; and
108.22 	(c) if the voter was not previously registered, the voter
108.23 	has provided proof of residence as required by section 201.061,
108.24 	subdivision 3.
108.25 	The county auditor or municipal clerk shall affix first
108.26 	class postage to the return envelopes.

108.27 	Sec. 34. Minnesota Statutes 2004, section 203B.11,
108.28 	subdivision 1, is amended to read:
108.29 		Subdivision 1.Generally.  Each full-time municipal clerk
108.30 	or school district clerk who has authority under section 203B.05
108.31 	to administer absentee voting laws shall designate election
108.32 	judges to deliver absentee ballots in accordance with this
108.33 	section.  The county auditor may must also designate election
108.34 	judges to perform the duties in this section.  A ballot may be
108.35 	delivered only to an eligible voter who is a temporary or
108.36 	permanent resident or patient in a health care facility or
109.1 	hospital located in the municipality in which the voter
109.2 	maintains residence.  The ballots shall be delivered by two
109.3 	election judges, each of whom is affiliated with a different
109.4 	major political party.  When the election judges deliver or
109.5 	return ballots as provided in this section, they shall travel
109.6 	together in the same vehicle.  Both election judges shall be
109.7 	present when an applicant completes the certificate of
109.8 	eligibility and marks the absentee ballots, and may assist an
109.9 	applicant as provided in section 204C.15.  The election judges
109.10 	shall deposit the return envelopes containing the marked
109.11 	absentee ballots in a sealed container and return them to the
109.12 	clerk on the same day that they are delivered and marked.

109.13 	Sec. 35. Minnesota Statutes 2004, section 203B.12,
109.14 	subdivision 2, is amended to read:
109.15 		Subd. 2.Examination of return envelopes.  Two or more
109.16 	election judges shall examine each return envelope and shall
109.17 	mark it accepted or rejected in the manner provided in this
109.18 	subdivision.  If a ballot has been prepared under section
109.19 	204B.12, subdivision 2a, or 204B.41, the election judges shall
109.20 	not begin removing ballot envelopes from the return envelopes
109.21 	until 8:00 p.m. on election day, either in the polling place or
109.22 	at an absentee ballot board established under section 203B.13.
109.23 	The election judges shall mark the return envelope
109.24 	"Accepted" and initial or sign the return envelope below the
109.25 	word "Accepted" if the election judges or a majority of them are
109.26 	satisfied that:
109.27 	(1) the voter's name and address on the return envelope are
109.28 	the same as the information provided on the absentee ballot
109.29 	application;
109.30 	(2) the voter's signature on the return envelope is the
109.31 	genuine signature of the individual who made the application for
109.32 	ballots and the certificate has been completed as prescribed in
109.33 	the directions for casting an absentee ballot, except that if a
109.34 	person other than the voter applied for the absentee ballot
109.35 	under applicable Minnesota Rules, the signature is not required
109.36 	to match;
110.1 	(3) the voter is registered and eligible to vote in the
110.2 	precinct or has included a properly completed voter registration
110.3 	application in the return envelope; and
110.4 	(4) the voter has not already voted at that election,
110.5 	either in person or by absentee ballot.
110.6 	There is no other reason for rejecting an absentee ballot.
110.7 	In particular, failure to place the envelope within the security
110.8 	envelope before placing it in the outer white envelope is not a
110.9 	reason to reject an absentee ballot.
110.10 	The return envelope from accepted ballots must be preserved
110.11 	and returned to the county auditor.
110.12 	If all or a majority of the election judges examining
110.13 	return envelopes find that an absent voter has failed to meet
110.14 	one of the requirements prescribed in clauses (1) to (4), they
110.15 	shall mark the return envelope "Rejected," initial or sign it
110.16 	below the word "Rejected," and return it to the county auditor.

110.17 	Sec. 36. Minnesota Statutes 2004, section 203B.20, is
110.18 	amended to read:
110.19 	203B.20 CHALLENGES.
110.20 	Except as provided in this section, the eligibility or
110.21 	residence of a voter whose application for absentee ballots is
110.22 	recorded under section 203B.19 may be challenged in the manner
110.23 	set forth by section 201.195.  The county auditor or municipal
110.24 	clerk shall not be required to serve a copy of the petition and
110.25 	notice of hearing on the challenged voter, unless the absentee
110.26 	ballot application was submitted on behalf of a voter by an
110.27 	individual authorized under section 203B.17, subdivision 1,
110.28 	paragraph (a), in which case the county auditor must attempt to
110.29 	notify the individual who submitted the application of the
110.30 	challenge.  The county auditor may contact other registered
110.31 	voters to request information that may resolve any discrepancies
110.32 	appearing in the application.  All reasonable doubt shall be
110.33 	resolved in favor of the validity of the application.  If the
110.34 	voter's challenge is affirmed, the county auditor shall provide
110.35 	the challenged voter with a copy of the petition and the
110.36 	decision and shall inform the voter of the right to appeal as
111.1 	provided in section 201.195.

111.2 	Sec. 37. Minnesota Statutes 2004, section 203B.21,
111.3 	subdivision 1, is amended to read:
111.4 		Subdivision 1.Form.  Absentee ballots under sections
111.5 	203B.16 to 203B.27 shall conform to the requirements of the
111.6 	Minnesota Election Law, except that modifications in the size or
111.7 	form of ballots or envelopes may be made if necessary to satisfy
111.8 	the requirements of the United States postal service, and the
111.9 	design must provide an additional flap that when sealed,
111.10 	conceals the signature, identification, and other information.
111.11 	The flap must be perforated to permit election officials to
111.12 	inspect the returned certificate for completeness or to
111.13 	ascertain other information at any time after receiving the
111.14 	returned ballot without opening the return envelope.

111.15 	Sec. 38. Minnesota Statutes 2004, section 203B.21,
111.16 	subdivision 3, is amended to read:
111.17 		Subd. 3.Back of return envelope.  On the back of the
111.18 	return envelope an affidavit form shall appear with space for:
111.19 	(a) The voter's address of present or former residence in
111.20 	Minnesota;
111.21 	(b) A statement indicating the category described in
111.22 	section 203B.16 to which the voter belongs;
111.23 	(c) A statement that the voter has not cast and will not
111.24 	cast another absentee ballot in the same election or elections;
111.25 	(d) A statement that the voter personally marked the
111.26 	ballots without showing them to anyone, or if physically unable
111.27 	to mark them, that the voter directed another individual to mark
111.28 	them; and
111.29 	(e) The voter's military identification card number,
111.30 	passport number, or, if the voter does not have a valid passport
111.31 	or identification card, the signature and certification of an
111.32 	individual authorized to administer oaths under federal law or
111.33 	the law of the place where the oath was administered or a 
111.34 	commissioned or noncommissioned officer personnel of the
111.35 	military not below the rank of sergeant or its equivalent.
111.36 	The affidavit shall also contain a signed and dated oath in
112.1 	the form required by section 705 of the Help America Vote Act,
112.2 	Public Law 107-252, which must read:
112.3 	"I swear or affirm, under penalty of perjury, that:
112.4 	I am a member of the uniformed services or merchant marine
112.5 	on active duty or an eligible spouse or dependent of such a
112.6 	member; a United States citizen temporarily residing outside the
112.7 	United States; or other United States citizen residing outside
112.8 	the United States; and I am a United States citizen, at least 18
112.9 	years of age (or will be by the date of the election), and I am
112.10 	eligible to vote in the requested jurisdiction; I have not been
112.11 	convicted of a felony, or other disqualifying offense, or been
112.12 	adjudicated mentally incompetent, or, if so, my voting rights
112.13 	have been reinstated; and I am not registering, requesting a
112.14 	ballot, or voting in any other jurisdiction in the United States
112.15 	except the jurisdiction cited in this voting form.  In voting, I
112.16 	have marked and sealed my ballot in private and have not allowed
112.17 	any person to observe the marking of the ballot, except for
112.18 	those authorized to assist voters under state or federal law.  I
112.19 	have not been influenced.
112.20 	My signature and date below indicate when I completed this
112.21 	document.
112.22 	The information on this form is true, accurate, and
112.23 	complete to the best of my knowledge.  I understand that a
112.24 	material misstatement of fact in completion of this document may
112.25 	constitute grounds for a conviction for perjury." 

112.26 	Sec. 39. Minnesota Statutes 2004, section 203B.24,
112.27 	subdivision 1, is amended to read:
112.28 		Subdivision 1.Check of voter eligibility; proper
112.29 	execution of affidavit.  Upon receipt of an absentee ballot
112.30 	returned as provided in sections 203B.16 to 203B.27, the
112.31 	election judges shall compare the voter's name with the names
112.32 	appearing on their copy of the application records to insure
112.33 	that the ballot is from a voter eligible to cast an absentee
112.34 	ballot under sections 203B.16 to 203B.27. Any discrepancy or
112.35 	disqualifying fact shall be noted on the envelope by the
112.36 	election judges.The election judges shall mark the return
113.1 	envelope "Accepted" and initial or sign the return envelope
113.2 	below the word "Accepted" if the election judges are satisfied
113.3 	that:
113.4 	(1) the voter's name on the return envelope appears in
113.5 	substantially the same form as on the application records
113.6 	provided to the election judges by the county auditor;
113.7 	(2) the voter has signed the federal oath prescribed
113.8 	pursuant to section 705(b)(2) of the Help America Vote Act,
113.9 	Public Law 107-252;
113.10 	(3) the voter has set forth the voter's military
113.11 	identification number or passport number or, if those numbers do
113.12 	not appear, a person authorized to administer oaths under
113.13 	federal law or the law of the place where the oath was
113.14 	administered or a witness who is military personnel with a rank
113.15 	at or above the rank of sergeant or its equivalent has signed
113.16 	the ballot; and 
113.17 	(4) the voter has not already voted at that election,
113.18 	either in person or by absentee ballot.
113.19 	An absentee ballot case pursuant to sections 203B.16 to
113.20 	203B.27 may only be rejected for the lack of one of clauses (1)
113.21 	to (4).  In particular, failure to place the envelope within the
113.22 	security envelope before placing it in the outer white envelope
113.23 	is not a reason to reject an absentee ballot.
113.24 	Election judges must note the reason for rejection on the
113.25 	back of the envelope in the space provided for that purpose.
113.26 	Failure to return unused ballots shall not invalidate a
113.27 	marked ballot, but a ballot shall not be counted if the
113.28 	affidavit on the return envelope is not properly executed.  In
113.29 	all other respects the provisions of the Minnesota Election Law
113.30 	governing deposit and counting of ballots shall apply.

113.31 	Sec. 40. Minnesota Statutes 2004, section 204B.10,
113.32 	subdivision 6, is amended to read:
113.33 		Subd. 6.Ineligible voter.  Upon receipt of a certified
113.34 	copy of a final judgment or order of a court of competent
113.35 	jurisdiction that a person who has filed an affidavit of
113.36 	candidacy or who has been nominated by petition:
114.1 	(1) has been convicted of treason or a felony and the
114.2 	person's civil rights have not been restored;
114.3 	(2) is under guardianship of the person; or
114.4 	(3) has been found by a court of law to be legally
114.5 	incompetent;
114.6 	the filing officer shall notify the person by certified mail at
114.7 	the address shown on the affidavit or petition, and, for offices
114.8 	other than president of the United States, vice-president of the
114.9 	United States, United States senator, and United States
114.10 	representative in Congress,shall not certify the person's name
114.11 	to be placed on the ballot.  The actions of a filing officer
114.12 	under this subdivision are subject to judicial review under
114.13 	section 204B.44.

114.14 	Sec. 41. Minnesota Statutes 2004, section 204B.14,
114.15 	subdivision 2, is amended to read:
114.16 		Subd. 2.Separate precincts; combined polling place.  (a)
114.17 	The following shall constitute at least one election precinct:
114.18 	(1) each city ward; and
114.19 	(2) each town and each statutory city.
114.20 	(b) A single, accessible, combined polling place may be
114.21 	established no later than June 1 of any year:
114.22 	(1) for any city of the third or fourth class, any town, or
114.23 	any city having territory in more than one county, in which all
114.24 	the voters of the city or town shall cast their ballots;
114.25 	(2) for two contiguous precincts in the same municipality
114.26 	that have a combined total of fewer than 500 registered voters;
114.27 	or
114.28 	(3) for up to four contiguous municipalities located
114.29 	entirely outside the metropolitan area, as defined by section
114.30 	473.121, subdivision 2 200.02, subdivision 24, that are
114.31 	contained in the same county.
114.32 	A copy of the ordinance or resolution establishing a
114.33 	combined polling place must be filed with the county auditor
114.34 	within 30 days after approval by the governing body.  A polling
114.35 	place combined under clause (3) must be approved by the
114.36 	governing body of each participating municipality.  A
115.1 	municipality withdrawing from participation in a combined
115.2 	polling place must do so by filing a resolution of withdrawal
115.3 	with the county auditor no later than May 1 of any year.
115.4 	The secretary of state shall provide a separate polling
115.5 	place roster for each precinct served by the combined polling
115.6 	place.  A single set of election judges may be appointed to
115.7 	serve at a combined polling place.  The number of election
115.8 	judges required must be based on the total number of persons
115.9 	voting at the last similar election in all precincts to be
115.10 	voting at the combined polling place.  Separate ballot boxes
115.11 	must be provided for the ballots from each precinct.  The
115.12 	results of the election must be reported separately for each
115.13 	precinct served by the combined polling place, except in a
115.14 	polling place established under clause (2) where one of the
115.15 	precincts has fewer than ten registered voters, in which case
115.16 	the results of that precinct must be reported in the manner
115.17 	specified by the secretary of state.

115.18 	Sec. 42. Minnesota Statutes 2004, section 204B.16,
115.19 	subdivision 1, is amended to read:
115.20 		Subdivision 1.Authority; location. (a) The governing
115.21 	body of each municipality and of each county with precincts in
115.22 	unorganized territory shall designate by ordinance or resolution
115.23 	a polling place for each election precinct.  Polling places must
115.24 	be designated and ballots must be distributed so that no one is
115.25 	required to go to more than one polling place to vote in a
115.26 	school district and municipal election held on the same day.
115.27 	The polling place for a precinct in a city or in a school
115.28 	district located in whole or in part in the metropolitan area
115.29 	defined by section 473.121 200.02, subdivision 24,shall be
115.30 	located within the boundaries of the precinct or within 3,000
115.31 	feet of one of those boundaries unless a single polling place is
115.32 	designated for a city pursuant to section 204B.14, subdivision
115.33 	2, or a school district pursuant to section 205A.11.  The
115.34 	polling place for a precinct in unorganized territory may be
115.35 	located outside the precinct at a place which is convenient to
115.36 	the voters of the precinct.  If no suitable place is available
116.1 	within a town or within a school district located outside the
116.2 	metropolitan area defined by section 473.121 200.02, subdivision
116.3 	24, then the polling place for a town or school district may be
116.4 	located outside the town or school district within five miles of
116.5 	one of the boundaries of the town or school district.
116.6 	(b) Each polling place serving precincts in which, in
116.7 	aggregate, there were more than 100 voters in the most recent
116.8 	similar election, must be to the extent the governing body
116.9 	determines it is practicable, at least 750 square feet, with an
116.10 	additional 60 square feet for each 150 voters in excess of 400
116.11 	that voted in the most recent similar election.

116.12 	Sec. 43. Minnesota Statutes 2004, section 204B.16,
116.13 	subdivision 5, is amended to read:
116.14 		Subd. 5.Access by elderly and handicapped persons with
116.15 	disabilities.  Each polling place shall be accessible to and
116.16 	usable by elderly individuals and physically handicapped 
116.17 	individuals with disabilities.  A polling place is deemed to be
116.18 	accessible and usable if it complies with the standards in
116.19 	paragraphs (a) to (f).
116.20 	(a) At least one set of doors must have a minimum width of
116.21 	31 32 inches if the doors must be used to enter or leave the
116.22 	polling place.
116.23 	(b) Any curb adjacent to the main entrance to a polling
116.24 	place must have curb cuts or temporary ramps.  Where the main
116.25 	entrance is not the accessible entrance, any curb adjacent to
116.26 	the accessible entrance must also have curb cuts or temporary
116.27 	ramps.
116.28 	(c) Where the main entrance is not the accessible entrance,
116.29 	a sign shall be posted at the main entrance giving directions to
116.30 	the accessible entrance.
116.31 	(d) At least one set of stairs must have a temporary
116.32 	handrail and ramp if stairs must be used to enter or leave the
116.33 	polling place.
116.34 	(e) No barrier in the polling place may impede the path of
116.35 	the physically handicapped persons with disabilities to the
116.36 	voting booth.
117.1 	(f) At least one handicapped parking space for persons with
117.2 	disabilities, which may be temporarily so designated by the
117.3 	municipality for the day of the election, must be available near
117.4 	the accessible entrance.
117.5 	The doorway, handrails, ramps, and handicapped parking
117.6 	provided pursuant to this subdivision must conform to the
117.7 	standards specified in the State Building Code for accessibility
117.8 	by handicapped persons with disabilities.
117.9 	A governing body shall designate as polling places only
117.10 	those places which meet the standards prescribed in this
117.11 	subdivision unless no available place within a precinct is
117.12 	accessible or can be made accessible.

117.13 	Sec. 44. Minnesota Statutes 2004, section 204B.18,
117.14 	subdivision 1, is amended to read:
117.15 		Subdivision 1.Booths; voting stations.  Each polling
117.16 	place must contain a number of at least two voting booths in
117.17 	proportion to the number of individuals eligible to vote in the
117.18 	precinct or self-contained voting stations plus one additional
117.19 	voting booth or self-contained voting station for each 150
117.20 	voters in excess of 200 registered in the precinct.  Each
117.21 	booth or station must be at least six feet high, three feet deep
117.22 	and two feet wide with a shelf at least two feet long and one
117.23 	foot wide placed at a convenient height for writing.  The
117.24 	booth or station shall be provided with a door or
117.25 	curtains permit the voter to vote privately and independently.
117.26 	Each accessible polling place must have at least one accessible
117.27 	voting booth or other accessible voting station and beginning
117.28 	with federal and state elections held after December 31, 2005,
117.29 	and county, municipal, and school district elections held after
117.30 	December 31, 2007, one voting system that conforms to section
117.31 	301(a)(3)(B) of the Help America Vote Act, Public Law 107-252.
117.32 	All booths or stations must be constructed so that a voter is
117.33 	free from observation while marking ballots. In all other
117.34 	polling places every effort must be made to provide at least one
117.35 	accessible voting booth or other accessible voting station.
117.36 	During the hours of voting, the booths or stations must have
118.1 	instructions, a pencil, and other supplies needed to mark the
118.2 	ballots. If needed,A chair must be provided for elderly and
118.3 	handicapped voters and voters with disabilities to use while
118.4 	voting or waiting to vote.  Stable flat writing surfaces must
118.5 	also be made available to voters who are completing
118.6 	election-related forms.  All ballot boxes, voting booths, voting
118.7 	stations, and election judges must be in open public view in the
118.8 	polling place.

118.9 	Sec. 45. Minnesota Statutes 2004, section 204B.22,
118.10 	subdivision 3, is amended to read:
118.11 		Subd. 3.Minimum number required in certain precincts of
118.12 	election judges.  At each state primary or state general 
118.13 	election in precincts using an electronic voting system with
118.14 	marking devices and in which more than 400 votes were cast at
118.15 	the last similar election, the minimum number of election judges
118.16 	is three plus one judge to demonstrate the use of the voting
118.17 	machine or device, and the number of additional election judges
118.18 	to be appointed is one for every 200 votes cast in that precinct
118.19 	in the most recent similar general election.

118.20 	Sec. 46. Minnesota Statutes 2004, section 204B.27,
118.21 	subdivision 1, is amended to read:
118.22 		Subdivision 1.Blank forms.  At least 25 14 days before
118.23 	every state election the secretary of state shall transmit to
118.24 	each county auditor a sufficient number of blank county abstract
118.25 	forms and other examples of any blank forms to be used as the
118.26 	secretary of state deems necessary for the conduct of the
118.27 	election. County abstract forms may be provided to auditors
118.28 	electronically via the Minnesota State Election Reporting System
118.29 	maintained by the secretary of state, and must be available at
118.30 	least one week prior to the election.

118.31 	Sec. 47. Minnesota Statutes 2004, section 204B.27,
118.32 	subdivision 3, is amended to read:
118.33 		Subd. 3.Instruction posters.  At least 25 days before
118.34 	every state election,the secretary of state shall prepare and
118.35 	furnish to the county auditor of each county in which paper
118.36 	ballots are used,voter instruction posters printed in large
119.1 	type upon cards or heavy paper.  The instruction posters must
119.2 	contain the information needed to enable the voters to cast
119.3 	their paper ballots quickly and correctly and indicate the types
119.4 	of assistance available for elderly and handicapped voters.  Two
119.5 	instruction posters shall be furnished for each precinct in
119.6 	which paper ballots are used. The secretary of state shall also
119.7 	provide posters informing voters of eligibility requirements to
119.8 	vote and of identification and proofs accepted for election day
119.9 	registration.  Posters furnished by the secretary of state must
119.10 	also include all information required to be posted by the Help
119.11 	America Vote Act, including:  instructions on how to vote,
119.12 	including how to cast a vote; instructions for mail-in
119.13 	registrants and first-time voters; general information on voting
119.14 	rights under applicable federal and state laws, and instructions
119.15 	on how to contact the appropriate officials if these rights are
119.16 	alleged to have been violated; and general information on
119.17 	federal and state laws regarding prohibitions on acts of fraud
119.18 	and misrepresentation.

119.19 	Sec. 48. Minnesota Statutes 2004, section 204B.33, is
119.20 	amended to read:
119.21 	204B.33 NOTICE OF FILING.
119.22 	(a) Between June 1 and July 1 in each even numbered year,
119.23 	the secretary of state shall notify each county auditor of the
119.24 	offices to be voted for in that county at the next state general
119.25 	election for which candidates file with the secretary of state.
119.26 	The notice shall include the time and place of filing for those
119.27 	offices and for judicial offices shall list the name of the
119.28 	incumbent, if any, currently holding the seat to be voted for.
119.29 	Within ten days after notification by the secretary of state,
119.30 	each county auditor shall notify each municipal clerk in the
119.31 	county of all the offices to be voted for in the county at that
119.32 	election and the time and place for filing for those offices.
119.33 	The county auditors and municipal clerks shall promptly post a
119.34 	copy of that notice in their offices.
119.35 	(b) At least two weeks before the first day to file an
119.36 	affidavit of candidacy, the county auditor shall publish a
120.1 	notice stating the first and last dates on which affidavits of
120.2 	candidacy may be filed in the county auditor's office and the
120.3 	closing time for filing on the last day for filing.  The county
120.4 	auditor shall post a similar notice at least ten days before the
120.5 	first day to file affidavits of candidacy.

120.6 	Sec. 49. Minnesota Statutes 2004, section 204C.05,
120.7 	subdivision 1a, is amended to read:
120.8 		Subd. 1a.Elections; organized town.  The governing body
120.9 	of a town with less than 500 inhabitants according to the most
120.10 	recent federal decennial census, which is located outside the
120.11 	metropolitan area as defined in section 473.121 200.02,
120.12 	subdivision 2 24, may fix a later time for voting to begin at
120.13 	state primary, special, or general elections, if approved by a
120.14 	vote of the town electors at the annual town meeting.  The
120.15 	question of shorter voting hours must be included in the notice
120.16 	of the annual town meeting before the question may be submitted
120.17 	to the electors at the meeting.  The later time may not be later
120.18 	than 10:00 a.m. for special, primary, or general elections.  The
120.19 	town clerk shall either post or publish notice of the changed
120.20 	hours and notify the county auditor of the change 30 days before
120.21 	the election.

120.22 	Sec. 50. Minnesota Statutes 2004, section 204C.08,
120.23 	subdivision 1, is amended to read:
120.24 		Subdivision 1.Display of flag; "vote here" sign. (a) 
120.25 	Upon their arrival at the polling place on the day of election,
120.26 	the election judges shall cause the national flag to be
120.27 	displayed on a suitable staff at the entrance to the polling
120.28 	place.  The flag shall be displayed continuously during the
120.29 	hours of voting and the election judges shall attest to that
120.30 	fact by signing the flag certification statement on the precinct
120.31 	summary statement.  The election judges shall receive no
120.32 	compensation for any time during which they intentionally fail
120.33 	to display the flag as required by this subdivision.
120.34 	(b) The election judges shall, immediately after displaying
120.35 	the flag pursuant to paragraph (a), post the following:
120.36 	(1) a "Vote Here" sign conspicuously near the flag, which
121.1 	must be of a size not less than two feet high by four feet wide,
121.2 	with letters printed in red in a font size of no less than
121.3 	576-point type, against a white background; and 
121.4 	(2) within the building, if the polling place has more than
121.5 	one room, signs indicating by arrows the direction in which to
121.6 	proceed in order to reach the room containing the polling place.

121.7 	Sec. 51. Minnesota Statutes 2004, section 204C.24,
121.8 	subdivision 1, is amended to read:
121.9 		Subdivision 1.Information requirements.  Precinct
121.10 	summary statements shall be submitted by the election judges in
121.11 	every precinct.  For state all elections, the election judges
121.12 	shall complete three or more copies of the summary statements,
121.13 	and each copy shall contain the following information for each
121.14 	kind of ballot:
121.15 	(a) the number of votes each candidate received or the
121.16 	number of yes and no votes on each question, the number of
121.17 	undervotes or partially blank ballots, and the number of
121.18 	overvotes or partially defective ballots with respect to each
121.19 	office or question;
121.20 	(b) the number of totally blank ballots, the number of
121.21 	totally defective ballots, the number of spoiled ballots, and
121.22 	the number of unused ballots;
121.23 	(c) the number of individuals who voted at the election in
121.24 	the precinct;
121.25 	(d) the number of voters registering on election day in
121.26 	that precinct; and
121.27 	(e) the signatures of the election judges who counted the
121.28 	ballots certifying that all of the ballots cast were properly
121.29 	piled, checked, and counted; and that the numbers entered by the
121.30 	election judges on the summary statements correctly show the
121.31 	number of votes cast for each candidate and for and against each
121.32 	question.
121.33 	At least two copies of the summary statement must be
121.34 	prepared for elections not held on the same day as the state
121.35 	elections.

121.36 	Sec. 52. Minnesota Statutes 2004, section 204C.28,
122.1 	subdivision 1, is amended to read:
122.2 		Subdivision 1.County auditor.  Every county auditor
122.3 	shall remain at the auditor's office to receive delivery of the
122.4 	returns, to permit public inspection of the summary statements,
122.5 	and to tabulate the votes until all have been tabulated and the
122.6 	results made known, or until 24 hours have elapsed since the end
122.7 	of the hours for voting, whichever occurs first. Every county
122.8 	auditor shall keep a book in which, in the presence of the
122.9 	municipal clerk or the election judges who deliver the returns,
122.10 	the auditor shall make a record of all materials delivered, the
122.11 	time of delivery, and the names of the municipal clerk or
122.12 	election judges who made delivery.  The county auditor shall
122.13 	file the book and all envelopes containing ballots in a safe and
122.14 	secure place with envelope seals unbroken.  Access to the book
122.15 	and ballots shall be strictly controlled.  Accountability and a
122.16 	record of access shall be maintained by the county auditor
122.17 	during the period for contesting elections or, if a contest is
122.18 	filed, until the contest has been finally determined.
122.19 	Thereafter, the book shall be retained in the auditor's office
122.20 	for the same period as the ballots as provided in section
122.21 	204B.40.
122.22 	The county auditor shall file all envelopes containing
122.23 	ballots in a safe place with seals unbroken.  If the envelopes
122.24 	were previously opened by proper authority for examination or
122.25 	recount, the county auditor shall have the envelopes sealed
122.26 	again and signed by the individuals who made the inspection or
122.27 	recount.  The envelopes may be opened by the county canvassing
122.28 	board if necessary to procure election returns that the election
122.29 	judges inadvertently may have sealed in the envelopes with the
122.30 	ballots.  In that case, the envelopes shall be sealed again and
122.31 	signed in the same manner as otherwise provided in this
122.32 	subdivision.

122.33 	Sec. 53. Minnesota Statutes 2004, section 204C.50,
122.34 	subdivision 1, is amended to read:
122.35 		Subdivision 1.Selection for review; notice.  (a)
122.36 	Postelection review under this section must be conducted only on
123.1 	the election for president, senator or representative in
123.2 	Congress, constitutional offices, and legislative offices.
123.3 	(b) The Office of the Secretary of State shall, within
123.4 	three days after each state general election beginning in 2006,
123.5 	randomly select 80 precincts for postelection review as defined
123.6 	in this section.  The precincts must be selected so that an
123.7 	equal number of precincts are selected in each congressional
123.8 	district of the state.  Of the precincts in each congressional
123.9 	district, at least five must have had more than 500 votes cast,
123.10 	and at least two must have had fewer than 500 votes cast.  The
123.11 	secretary of state must promptly provide notices of which
123.12 	precincts are chosen to the election administration officials
123.13 	who are responsible for the conduct of elections in those
123.14 	precincts.
123.15 	(b) (c) One week before the state general election
123.16 	beginning in 2006, the secretary of state must post on the
123.17 	office Web site the date, time, and location at which precincts
123.18 	will be randomly chosen for review under this section.  The
123.19 	chair of each major political party may appoint a designee to
123.20 	observe the random selection process.

123.21 	Sec. 54. Minnesota Statutes 2004, section 204C.50,
123.22 	subdivision 2, is amended to read:
123.23 		Subd. 2.Scope and conduct of review.  Each review is
123.24 	limited to federal and state offices and must consist of at
123.25 	least the following:
123.26 	(a) The election officials immediately responsible for a
123.27 	precinct chosen for review must conduct the following review and
123.28 	submit the results in writing to the State Canvassing Board
123.29 	before it meets to canvass the election:
123.30 	(1) a hand tally of the paper ballots or electronic ballot
123.31 	marker record, of whatever kind used in that precinct, for each
123.32 	contested election;
123.33 	(2) a recount using the actual machine and software used on
123.34 	election day, if a precinct-count or central-count automated
123.35 	voting system was used; and
123.36 	(3) a comparison of the hand tally with the reported
124.1 	results for the precinct in the county canvassing board report,
124.2 	as well as the actual tape of any automated tabulation produced
124.3 	by any precinct-count or central-count optical scan equipment
124.4 	that may have been used to tabulate votes cast in that precinct.
124.5 	(b) The staff of the Office of the Secretary of State shall
124.6 	conduct or directly supervise a review of the procedures used by
124.7 	the election officials at all levels for a precinct chosen for
124.8 	review, including an inspection of the materials retained for
124.9 	the official 22-month retention period, such as the rosters, the
124.10 	incident log, and the ballots themselves.  The staff must submit
124.11 	a written report to the secretary of state before the next
124.12 	regularly scheduled meeting of the State Canvassing Board.

124.13 	Sec. 55. Minnesota Statutes 2004, section 204D.03,
124.14 	subdivision 1, is amended to read:
124.15 		Subdivision 1.State primary. (a) The state primary
124.16 	shall be held on the first Tuesday after the second Monday in
124.17 	September in each even-numbered year to select the nominees of
124.18 	the major political parties for partisan offices and the
124.19 	nominees for nonpartisan offices to be filled at the state
124.20 	general election, other than presidential electors.
124.21 	(b) If in any municipality or county there are no partisan
124.22 	or nonpartisan offices for which nominees must be selected at
124.23 	the state primary, no state primary shall be held in the
124.24 	municipality or county.  However, no later than 15 days after
124.25 	the close of filings, the municipal clerk or county auditor in
124.26 	such a municipality or county must post a notice in the office,
124.27 	and send a copy of the notice to the secretary of state, stating
124.28 	that no primary will be held in the municipality or county
124.29 	because there are no partisan or nonpartisan offices for which
124.30 	nominees must be selected in the municipality or county.

124.31 	Sec. 56. Minnesota Statutes 2004, section 204D.14,
124.32 	subdivision 3, is amended to read:
124.33 		Subd. 3.Uncontested judicial offices.  Judicial
124.34 	offices for a specific court for which there is only one
124.35 	candidate filed must appear after all other judicial offices for
124.36 	that same court on the canary ballot.

125.1 	Sec. 57. Minnesota Statutes 2004, section 204D.27,
125.2 	subdivision 5, is amended to read:
125.3 		Subd. 5.Canvass; special primary; state canvassing
125.4 	board.  Not later than four days after the returns of the county
125.5 	canvassing boards are certified to the secretary of state, the
125.6 	State Canvassing Board shall complete its canvass of the special
125.7 	primary.  The secretary of state shall then promptly certify to
125.8 	the county auditors the names of the nominated individuals,
125.9 	prepare notices of nomination,and notify each nominee of the
125.10 	nomination.

125.11 	Sec. 58. [205.135] ELECTION REPORTING SYSTEM; CANDIDATE
125.12 	FILING.
125.13 		Subdivision 1.Even-numbered year. For regularly
125.14 	scheduled municipal elections held in an even-numbered year, the
125.15 	municipal clerk must provide the offices and questions to be
125.16 	voted on in the municipality and the list of candidates for each
125.17 	office to the county auditor for entry into the election
125.18 	reporting system provided by the secretary of state no later
125.19 	than 46 days prior to the election.  The county auditor must
125.20 	delegate, at the request of the municipality, the duty to enter
125.21 	the information into the system to the municipal clerk.
125.22 		Subd. 2.Odd-numbered year. For regularly scheduled
125.23 	municipal elections held in an odd-numbered year, the municipal
125.24 	clerk or county auditor must enter the offices and questions to
125.25 	be voted on in the municipality and the list of candidates for
125.26 	each office into the election reporting system no later than 46
125.27 	days prior to the election.

125.28 	Sec. 59. Minnesota Statutes 2004, section 205.175,
125.29 	subdivision 2, is amended to read:
125.30 		Subd. 2.Metropolitan area municipalities.  The governing
125.31 	body of a municipality which is located within a metropolitan
125.32 	county as defined by section 473.121included in the definition
125.33 	of metropolitan area in section 200.02, subdivision 24,may
125.34 	designate the time during which the polling places will remain
125.35 	open for voting at the next succeeding and all subsequent
125.36 	municipal elections, provided that the polling places shall open
126.1 	no later than 10:00 a.m. and shall close no earlier than 8:00
126.2 	p.m.  The resolution shall remain in force until it is revoked
126.3 	by the municipal governing body.

126.4 	Sec. 60. [205.187] ELECTION REPORTING SYSTEM; PRECINCT
126.5 	VOTES.
126.6 		Subdivision 1.Even-numbered year. For regularly
126.7 	scheduled municipal elections held in an even-numbered year, the
126.8 	county auditor must enter the votes in each precinct for the
126.9 	questions and offices voted on in the municipal election into
126.10 	the election reporting system provided by the secretary of state.
126.11 		Subd. 2.Odd-numbered year. For regularly scheduled
126.12 	municipal elections held in an odd-numbered year, the municipal
126.13 	clerk or county auditor must enter the votes in each precinct
126.14 	for the offices and questions voted on in the municipality into
126.15 	the election reporting system provided by the secretary of state.

126.16 	Sec. 61. [205A.075] ELECTION REPORTING SYSTEM; CANDIDATE
126.17 	FILING.
126.18 		Subdivision 1.Even-numbered year. For regularly
126.19 	scheduled school district elections held in an even-numbered
126.20 	year, the school district clerk must provide the offices and
126.21 	questions to be voted on in the school district and the list of
126.22 	candidates for each office to the county auditor for entry into
126.23 	the election reporting system provided by the secretary of state
126.24 	no later than 47 days prior to the election.
126.25 		Subd. 2.Odd-numbered year. For regularly scheduled
126.26 	school district elections held in an odd-numbered year, the
126.27 	school district clerk or county auditor must enter the offices
126.28 	and questions to be voted on in the school district and the list
126.29 	of candidates for each office into the election reporting system
126.30 	provided by the secretary of state no later than 47 days prior
126.31 	to the election.

126.32 	Sec. 62. [205A.076] ELECTION REPORTING SYSTEM; PRECINCT
126.33 	VOTES.
126.34 		Subdivision 1.Even-numbered year. For regularly
126.35 	scheduled school district elections held in an even-numbered
126.36 	year, the county auditor must enter the votes in each precinct
127.1 	for the questions and offices voted on in the school district
127.2 	election into the election reporting system provided by the
127.3 	secretary of state.
127.4 		Subd. 2.Odd-numbered year. For regularly scheduled
127.5 	school district elections held in an odd-numbered year, the
127.6 	school district clerk or county auditor must enter the votes in
127.7 	each precinct for the offices and questions voted on in the
127.8 	school district into the election reporting system provided by
127.9 	the secretary of state.

127.10 	Sec. 63. Minnesota Statutes 2004, section 205A.09,
127.11 	subdivision 1, is amended to read:
127.12 		Subdivision 1.Metropolitan area school districts.  At a
127.13 	school district election in a school district located in whole
127.14 	or in part within a metropolitan county as defined by section
127.15 	473.121 included in the definition of metropolitan area in
127.16 	section 200.02, subdivision 24, the school board, by resolution
127.17 	adopted before giving notice of the election, may designate the
127.18 	time during which the polling places will remain open for voting
127.19 	at the next succeeding and all later school district elections.
127.20 	The polling places must open no later than 10:00 a.m. and close
127.21 	no earlier than 8:00 p.m.  The resolution shall remain in force
127.22 	until it is revoked by the school board.

127.23 	Sec. 64. Minnesota Statutes 2004, section 206.56,
127.24 	subdivision 2, is amended to read:
127.25 		Subd. 2.Automatic tabulating equipment.  "Automatic
127.26 	tabulating equipment" includes apparatus machines, resident
127.27 	firmware, and programmable memory units necessary to optically
127.28 	scan,automatically examine,and count votes designated on
127.29 	ballot cards, and data processing machines which can be used for
127.30 	counting ballots and tabulating results.

127.31 	Sec. 65. Minnesota Statutes 2004, section 206.56,
127.32 	subdivision 3, is amended to read:
127.33 		Subd. 3.Ballot.  "Ballot" includes ballot cards and 
127.34 	paper ballots, ballot cards, the paper ballot marked by an
127.35 	electronic marking device, and the data securely transmitted
127.36 	electronically to the optical scan machine in the precinct from
128.1 	a machine that creates an individual, discrete paper record of
128.2 	each vote.

128.3 	Sec. 66. Minnesota Statutes 2004, section 206.56,
128.4 	subdivision 7, is amended to read:
128.5 		Subd. 7.Counting center.  "Counting center" means a
128.6 	place selected by the governing body of a municipality where an 
128.7 	a central count electronic voting system is used for the
128.8 	automatic processing and counting of ballots.

128.9 	Sec. 67. Minnesota Statutes 2004, section 206.56,
128.10 	subdivision 8, is amended to read:
128.11 		Subd. 8.Electronic voting system.  "Electronic voting
128.12 	system" means a system in which the voter records votes by means
128.13 	of marking a ballot, which is designed so that votes may be
128.14 	counted by automatic tabulating equipment at a counting
128.15 	center or in the precinct or polling place where the ballot is
128.16 	cast.
128.17 	An electronic voting system includes automatic tabulating
128.18 	equipment; nonelectronic ballot markers; electronic ballot
128.19 	markers, including electronic ballot display, audio ballot
128.20 	reader, and devices by which the voter will register the voter's
128.21 	voting intent; software used to program automatic tabulators and
128.22 	layout ballots; computer programs used to accumulate precinct
128.23 	results; ballots; secrecy folders; system documentation; and
128.24 	system testing results.

128.25 	Sec. 68. Minnesota Statutes 2004, section 206.56,
128.26 	subdivision 9, is amended to read:
128.27 		Subd. 9.manual marking device.  " Manual marking device"
128.28 	means any approved device for directly marking a ballot by hand 
128.29 	with ink, pencil,or other substance which will enable the
128.30 	ballot to be tabulated by means of automatic tabulating
128.31 	equipment.

128.32 	Sec. 69. Minnesota Statutes 2004, section 206.56, is
128.33 	amended by adding a subdivision to read:
128.34 		Subd. 9a.Electronic ballot marker. "Electronic ballot
128.35 	marker" means equipment that is part of an electronic voting
128.36 	system that uses an electronic ballot display or audio ballot
129.1 	reader to:  (1) mark a nonelectronic ballot with votes selected
129.2 	by a voter; or (2) securely transmit a ballot to the optical
129.3 	scan machine in the precinct from a machine that creates an
129.4 	individual, discrete paper record of each vote.

129.5 	Sec. 70. Minnesota Statutes 2004, section 206.56, is
129.6 	amended by adding a subdivision to read:
129.7 		Subd. 9b.Assistive voting technology. "Assistive voting
129.8 	technology" means touch-activated screen, buttons, keypad,
129.9 	sip-and-puff input device, keyboard, earphones, or any other
129.10 	device used with an electronic ballot marker that assists voters
129.11 	to use an audio or electronic ballot display in order to select
129.12 	votes.

129.13 	Sec. 71. Minnesota Statutes 2004, section 206.56, is
129.14 	amended by adding a subdivision to read:
129.15 		Subd. 9c.Electronic ballot display. "Electronic ballot
129.16 	display" means a graphic representation of a ballot on a
129.17 	computer monitor or screen on which a voter may make vote
129.18 	choices for candidates and questions for the purpose of marking
129.19 	a nonelectronic ballot or for the purpose of securely
129.20 	transmitting a ballot to the optical scan machine in the
129.21 	precinct from a machine that creates an individual, discrete
129.22 	paper record of each vote.

129.23 	Sec. 72. Minnesota Statutes 2004, section 206.56, is
129.24 	amended by adding a subdivision to read:
129.25 		Subd. 9d.Audio ballot reader. "Audio ballot reader"
129.26 	means an audio representation of a ballot that can be used with
129.27 	other assistive voting technology to permit a voter to mark
129.28 	votes on a nonelectronic ballot or to securely transmit a ballot
129.29 	to the optical scan machine in the precinct from a machine that
129.30 	creates an individual, discrete paper record of each vote using
129.31 	an electronic ballot marker.

129.32 	Sec. 73. Minnesota Statutes 2004, section 206.57,
129.33 	subdivision 1, is amended to read:
129.34 		Subdivision 1.Examination and report by secretary of
129.35 	state; approval.  A vendor of an electronic voting system may
129.36 	apply to the secretary of state to examine the system and to
130.1 	report as to its compliance with the requirements of law and as
130.2 	to its accuracy, durability, efficiency, and capacity to
130.3 	register the will of voters.  The secretary of state or a
130.4 	designee shall examine the system submitted and file a report on
130.5 	it in the Office of the Secretary of State.  Examination is not
130.6 	required of every individual machine or counting device, but
130.7 	only of each type of electronic voting system before its
130.8 	adoption, use, or purchase and before its continued use after
130.9 	significant changes have been made in an approved system.  The
130.10 	examination must include the ballot programming,; electronic
130.11 	ballot marking, including all assistive technologies intended to
130.12 	be used with the system;vote counting,;and vote accumulation
130.13 	functions of each voting system.
130.14 	If the report of the secretary of state or the secretary's
130.15 	designee concludes that the kind of system examined complies
130.16 	with the requirements of sections 206.55 to 206.90 and can be
130.17 	used safely, the system shall be deemed approved by the
130.18 	secretary of state, and may be adopted and purchased for use at
130.19 	elections in this state.  A voting system not approved by the
130.20 	secretary of state may not be used at an election in this
130.21 	state.  The secretary of state may adopt permanent rules
130.22 	consistent with sections 206.55 to 206.90 relating to the
130.23 	examination and use of electronic voting systems.

130.24 	Sec. 74. Minnesota Statutes 2004, section 206.57,
130.25 	subdivision 5, is amended to read:
130.26 		Subd. 5.Voting system for disabled voters. In federal
130.27 	and state elections held after December 31, 2005, and in county,
130.28 	municipal, and school district elections held after December 31,
130.29 	2007,the voting method used in each polling place must include
130.30 	a voting system that is accessible for individuals with
130.31 	disabilities, including nonvisual accessibility for the blind
130.32 	and visually impaired in a manner that provides the same
130.33 	opportunity for access and participation, including privacy and
130.34 	independence, as for other voters.

130.35 	Sec. 75. Minnesota Statutes 2004, section 206.57, is
130.36 	amended by adding a subdivision to read:
131.1 		Subd. 7.Election assistance commission standards. If,
131.2 	prior to January 1, 2006, the federal Election Assistance
131.3 	Commission has not established standards for an electronic
131.4 	ballot marker or other voting system component that is required
131.5 	to enable a voting system to meet the requirements of
131.6 	subdivision 5, the secretary of state may certify the voting
131.7 	system on an experimental basis pending the completion of
131.8 	federal standards, notwithstanding subdivision 6.  Within two
131.9 	years after the Election Assistance Commission issues standards
131.10 	for a voting system component used in a voting system authorized
131.11 	under this subdivision, the secretary of state must review or
131.12 	reexamine the voting system to determine whether the system
131.13 	conforms to federal standards.

131.14 	Sec. 76. Minnesota Statutes 2004, section 206.58,
131.15 	subdivision 1, is amended to read:
131.16 		Subdivision 1.Municipalities. (a) The governing body of
131.17 	a municipality, at a regular meeting or at a special meeting
131.18 	called for the purpose, may must provide for the use of an at
131.19 	least one electronic voting system that conforms to the
131.20 	requirements of section 301(a)(3)(B) of the Help America Vote
131.21 	Act, Public Law 107-252,in one or more precincts each polling
131.22 	place and at all elections in the precincts, subject to approval
131.23 	by the county auditor. This paragraph applies to federal and
131.24 	state elections held after December 31, 2005, and to county,
131.25 	municipal, and school district elections held after December 31,
131.26 	2007.
131.27 	(b) The governing body shall disseminate information to the
131.28 	public about the use of a new voting system at least 60 days
131.29 	prior to the election and shall provide for instruction of
131.30 	voters with a demonstration voting system in a public place for
131.31 	the six weeks immediately prior to the first election at which
131.32 	the new voting system will be used.
131.33 	(c) No system may be adopted or used unless it has been
131.34 	approved by the secretary of state pursuant to section 206.57.

131.35 	Sec. 77. [206.585] STATE VOTING SYSTEMS CONTRACTS.
131.36 	The secretary of state shall establish a working group
132.1 	including representatives of county auditors, municipal clerks,
132.2 	and members of the disabilities community to assist in
132.3 	developing a request for proposals and subsequent state voting
132.4 	systems contracts.  Each contract should, if practical, include
132.5 	provisions for maintenance of the equipment purchased.  Counties
132.6 	and municipalities may purchase voting systems and obtain
132.7 	related election services from the state contracts.  The voting
132.8 	systems contracts shall address precinct-based optical scan
132.9 	voting equipment, ballot marking equipment for persons with
132.10 	disabilities and other voters, and assistive voting machines
132.11 	that combine voting methods used for persons with disabilities
132.12 	with precinct-based optical scan voting machines.

132.13 	EFFECTIVE DATE. This section is effective the day
132.14 	following final enactment.

132.15 	Sec. 78. Minnesota Statutes 2004, section 206.61,
132.16 	subdivision 4, is amended to read:
132.17 		Subd. 4.Order of candidates.  On the "State Partisan
132.18 	Primary Ballot" prepared for primary elections, and on the white
132.19 	ballot prepared for the general election, the order of the names
132.20 	of nominees or names of candidates for election shall be the
132.21 	same as required for paper ballots.  More than one column or row
132.22 	may be used for the same office or party. Electronic ballot
132.23 	display and audio ballot readers must conform to the candidate
132.24 	order on the optical scan ballot used in the precinct.

132.25 	Sec. 79. Minnesota Statutes 2004, section 206.61,
132.26 	subdivision 5, is amended to read:
132.27 		Subd. 5.Alternation.  The provisions of the election
132.28 	laws requiring the alternation of names of candidates must be
132.29 	observed as far as practicable by changing the order of the
132.30 	names on an electronic voting system in the various precincts so
132.31 	that each name appears on the machines or marking devices used
132.32 	in a municipality substantially an equal number of times in the
132.33 	first, last, and in each intermediate place in the list or group
132.34 	in which they belong.  However, the arrangement of candidates'
132.35 	names must be the same on all voting systems used in the same
132.36 	precinct.  If the number of names to be alternated exceeds the
133.1 	number of precincts, the election official responsible for
133.2 	providing the ballots, in accordance with subdivision 1, shall
133.3 	determine by lot the alternation of names.
133.4 	If an electronic ballot marker is used with a paper ballot
133.5 	that is not an optical scan ballot card, the manner of
133.6 	alternation of candidate names on the paper ballot must be as
133.7 	prescribed for optical scan ballots in this subdivision.  If a
133.8 	machine is used to securely transmit a ballot to the optical
133.9 	scan machine in the precinct from a machine that creates an
133.10 	individual, discrete paper record of each vote, the manner of
133.11 	alternation of candidate names on the transmitting machine must
133.12 	be as prescribed for optical scan ballots in this subdivision.

133.13 	Sec. 80. Minnesota Statutes 2004, section 206.64,
133.14 	subdivision 1, is amended to read:
133.15 		Subdivision 1.General provisions for electronic system
133.16 	voting.  Each electronic voting system booth must be placed and
133.17 	protected so that it is accessible to only one voter at a time
133.18 	and is in full view of all the election judges and challengers
133.19 	at the polling place.  The election judges shall admit one
133.20 	individual at a time to each booth after determining that the
133.21 	individual is eligible to vote.  Voting by electronic voting
133.22 	system must be secret, except for voters who need request 
133.23 	assistance.  A voter may remain inside the voting booth for
133.24 	three minutes the time reasonably required for the voter to
133.25 	complete the ballot.  A voter who refuses to leave the voting
133.26 	booth after a reasonable amount of time, but not less than three
133.27 	minutes,must be removed by the election judges.

133.28 	Sec. 81. [206.65] SYSTEMS REQUIRED IN POLLING PLACES;
133.29 	CO-LOCATION OF PRECINCTS.
133.30 	In federal and state elections held after December 31,
133.31 	2005, and in county, municipal, and school district elections
133.32 	held after December 31, 2007, each polling place must be
133.33 	equipped with an electronic voting system equipped for
133.34 	individuals with disabilities.  Precincts that share a polling
133.35 	place with other precincts pursuant to section 204B.14,
133.36 	subdivision 4, may share voting equipment.  Notwithstanding
134.1 	section 204B.14, upon written request to and approval by the
134.2 	secretary of state, the responsible municipal clerks may
134.3 	co-locate noncontiguous precincts located in one or more
134.4 	counties into one convenient polling place.  To the extent that
134.5 	an election includes offices for more than one jurisdiction,
134.6 	operating costs are to be allocated among those jurisdictions.
134.7 	For the purposes of this section, "operating costs" include
134.8 	actual county and municipal costs for hardware maintenance,
134.9 	election day technical support, software licensing, system
134.10 	programming, voting system testing, training of county and
134.11 	municipal staff in the use of the assistive voting systems,
134.12 	transportation of the assistive voting systems to and from the
134.13 	polling places, and storage of the assistive voting systems
134.14 	between elections.

134.15 	EFFECTIVE DATE. This section is effective the day
134.16 	following final enactment.

134.17 	Sec. 82. Minnesota Statutes 2004, section 206.80, is
134.18 	amended to read:
134.19 	206.80 ELECTRONIC VOTING SYSTEMS.
134.20 	(a) An electronic voting system may not be employed unless
134.21 	it:
134.22 	(1) permits every voter to vote in secret;
134.23 	(2) permits every voter to vote for all candidates and
134.24 	questions for whom or upon which the voter is legally entitled
134.25 	to vote;
134.26 	(3) provides for write-in voting when authorized;
134.27 	(4) rejects by means of the automatic tabulating
134.28 	equipment automatically, except as provided in section 206.84
134.29 	with respect to write-in votes, all votes for an office or
134.30 	question when the number of votes cast on it exceeds the number
134.31 	which the voter is entitled to cast;
134.32 	(5) permits a voter at a primary election to select
134.33 	secretly the party for which the voter wishes to vote; and 
134.34 	(6) rejects, by means of the automatic tabulating
134.35 	equipment,automatically all votes cast in a primary election by
134.36 	a voter when the voter votes for candidates of more than one
135.1 	party.; and 
135.2 	(7) provides every voter an opportunity to electronically
135.3 	verify votes and to change votes or correct any error before the
135.4 	voter's ballot is cast and counted, produces either a permanent
135.5 	paper record or a paper ballot that is then cast by the voter
135.6 	that is preserved as an official record available for use in any
135.7 	recount.
135.8 	(b) An electronic voting system purchased on or after the
135.9 	effective date of this section may not be employed unless it
135.10 	accepts and tabulates, in the precinct or at a counting center,
135.11 	a marked optical scan ballot or creates a marked optical scan
135.12 	ballot that can be tabulated in the precinct or at a counting
135.13 	center by an optical scan machine certified for use in this
135.14 	state, or is a machine that securely transmits a vote
135.15 	electronically to an optical scan machine in the precinct while
135.16 	creating a paper record of each vote.

135.17 	EFFECTIVE DATE. This section is effective the day
135.18 	following final enactment.

135.19 	Sec. 83. Minnesota Statutes 2004, section 206.81, is
135.20 	amended to read:
135.21 	206.81 ELECTRONIC VOTING SYSTEMS; EXPERIMENTAL USE.
135.22 	(a) The secretary of state may approve certify an
135.23 	electronic voting system for experimental use at an election
135.24 	prior to its approval for general use.
135.25 	(b) The secretary of state must approve one or more direct
135.26 	recording electronic voting systems for experimental use at an
135.27 	election before their approval for general use and may impose
135.28 	restrictions on their use.  At least one voting system approved
135.29 	under this paragraph must permit sighted persons to vote and at
135.30 	least one system must permit a blind or visually impaired voter
135.31 	to cast a ballot independently and privately.
135.32 	(c) Experimental use must be observed by the secretary of
135.33 	state or the secretary's designee and the results observed must
135.34 	be considered at any subsequent proceedings for approval for
135.35 	general use.
135.36 	(d) (c) The secretary of state may adopt rules consistent
136.1 	with sections 206.55 to 206.90 relating to experimental use.
136.2 	The extent of experimental use must be determined by the
136.3 	secretary of state.

136.4 	Sec. 84. Minnesota Statutes 2004, section 206.82,
136.5 	subdivision 1, is amended to read:
136.6 		Subdivision 1.Program.  A program or programs for use in
136.7 	an election conducted by means of an electronic voting system or
136.8 	using an electronic ballot marker shall be prepared at the
136.9 	direction of the county auditor or municipal clerk who is
136.10 	responsible for the conduct of the election and shall be
136.11 	independently verified by a competent person designated by that
136.12 	official.  The term "competent person" as used in this section
136.13 	means a person who can demonstrate knowledge as a computer
136.14 	programmer and who is other than and wholly independent of any
136.15 	person operating or employed by the counting center or the
136.16 	corporation or other preparer of the program.  A test deck
136.17 	prepared by a competent person shall be used for independent
136.18 	verification of the program; it shall test the maximum digits
136.19 	used in totaling the returns and shall be usable by insertion
136.20 	during the tabulation process as well as prior to tabulation. A
136.21 	test deck must also be prepared using the electronic ballot
136.22 	marker program and must also be used to verify that all valid
136.23 	votes counted by the vote tabulator may be selected using the
136.24 	electronic ballot marker.The secretary of state shall adopt
136.25 	rules further specifying test procedures.

136.26 	Sec. 85. Minnesota Statutes 2004, section 206.82,
136.27 	subdivision 2, is amended to read:
136.28 		Subd. 2.Plan.  The municipal clerk in a municipality
136.29 	where an electronic voting system is used and the county auditor
136.30 	of a county in which an electronic voting system is used in more
136.31 	than one municipality and the county auditor of a county in
136.32 	which a counting center serving more than one municipality is
136.33 	located shall prepare a plan which indicates acquisition of
136.34 	sufficient facilities, computer time, and professional services
136.35 	and which describes the proposed manner of complying with
136.36 	section 206.80.  The plan must be signed, notarized, and
137.1 	submitted to the secretary of state more than 60 days before the
137.2 	first election at which the municipality uses an electronic
137.3 	voting system.  Prior to July 1 of each subsequent general
137.4 	election year, the clerk or auditor shall submit to the
137.5 	secretary of state notification of any changes to the plan on
137.6 	file with the secretary of state.  The secretary of state shall
137.7 	review each plan for its sufficiency and may request technical
137.8 	assistance from the Department of Administration or other agency
137.9 	which may be operating as the central computer authority.  The
137.10 	secretary of state shall notify each reporting authority of the
137.11 	sufficiency or insufficiency of its plan within 20 days of
137.12 	receipt of the plan.  The attorney general, upon request of the
137.13 	secretary of state, may seek a district court order requiring an
137.14 	election official to fulfill duties imposed by this subdivision
137.15 	or by rules promulgated pursuant to this section.

137.16 	Sec. 86. Minnesota Statutes 2004, section 206.83, is
137.17 	amended to read:
137.18 	206.83 TESTING OF VOTING SYSTEMS.
137.19 	The official in charge of elections shall within 14 days
137.20 	prior to election day have the voting system tested to ascertain
137.21 	that the system will correctly mark or securely transmit to the
137.22 	optical scan machine in the precinct ballots using all methods
137.23 	supported by the system, including through assistive technology,
137.24 	and count the votes cast for all candidates and on all questions
137.25 	within 14 days prior to election day.  Public notice of the time
137.26 	and place of the test must be given at least two days in advance
137.27 	by publication once in official newspapers.  The test must be
137.28 	observed by at least two election judges, who are not of the
137.29 	same major political party, and must be open to representatives
137.30 	of the political parties, candidates, the press, and the
137.31 	public.  The test must be conducted by (1) processing a
137.32 	preaudited group of ballots punched or marked to record a
137.33 	predetermined number of valid votes for each candidate and on
137.34 	each question, and must include for each office one or more
137.35 	ballot cards which have votes in excess of the number allowed by
137.36 	law in order to test the ability of the voting system tabulator
138.1 	and electronic ballot marker to reject those votes; and (2)
138.2 	processing an additional test deck of ballots marked using the
138.3 	electronic ballot marker to be employed in the precinct,
138.4 	including ballots marked or securely transmitted to the optical
138.5 	scan machine in the precinct using the electronic ballot
138.6 	display, audio ballot reader, and each of the assistive voting
138.7 	peripheral devices used with the electronic ballot marker.  If
138.8 	any error is detected, the cause must be ascertained and
138.9 	corrected and an errorless count must be made before the voting
138.10 	system may be used in the election.  After the completion of the
138.11 	test, the programs used and ballot cards must be sealed,
138.12 	retained, and disposed of as provided for paper ballots.

138.13 	Sec. 87. Minnesota Statutes 2004, section 206.84,
138.14 	subdivision 1, is amended to read:
138.15 		Subdivision 1.Instruction of judges, voters.  The
138.16 	officials in charge of elections shall determine procedures to
138.17 	instruct election judges and voters in the use of electronic
138.18 	voting system manual marking devices and the electronic ballot
138.19 	marker, including assistive peripheral devices.

138.20 	Sec. 88. Minnesota Statutes 2004, section 206.84,
138.21 	subdivision 3, is amended to read:
138.22 		Subd. 3.Ballots.  The ballot information must be in the
138.23 	same order provided for paper ballots, except that the
138.24 	information may be in vertical or horizontal rows, or on a
138.25 	number of separate pages.  The secretary of state shall provide
138.26 	by rule for standard ballot formats for electronic voting
138.27 	systems. Electronic ballot displays and audio ballot readers
138.28 	shall be in the order provided for on the optical scan ballot.
138.29 	Electronic ballot displays may employ zooms or other devices as
138.30 	assistive voting technology.  Audio ballot readers may employ
138.31 	rewinds or audio cues as assistive voting technology.
138.32 	Ballot cards may contain special printed marks and holes as
138.33 	required for proper positioning and reading of the ballots by
138.34 	electronic vote counting equipment.  Ballot cards must contain
138.35 	an identification of the precinct for which they have been
138.36 	prepared which can be read visually and which can be tabulated
139.1 	by the automatic tabulating equipment.

139.2 	Sec. 89. Minnesota Statutes 2004, section 206.84,
139.3 	subdivision 6, is amended to read:
139.4 		Subd. 6.Duties of official in charge.  The official in
139.5 	charge of elections in each municipality where an electronic
139.6 	voting system is used shall have the voting systems put in
139.7 	order, set, adjusted, and made ready for voting when delivered
139.8 	to the election precincts.  The official shall also provide each
139.9 	precinct with a container for transporting ballot cards to the
139.10 	counting location after the polls close.  The container shall be
139.11 	of sturdy material to protect the ballots from all reasonably
139.12 	foreseeable hazards including auto collisions.  The election
139.13 	judges shall meet at the polling place at least one hour before
139.14 	the time for opening the polls.  Before the polls open the
139.15 	election judges shall compare the ballot cards used with the
139.16 	sample ballots, electronic ballot displays, and audio ballot
139.17 	reader furnished to see that the names, numbers, and letters on
139.18 	both agree and shall certify to that fact on forms provided for
139.19 	the purpose.  The certification must be filed with the election
139.20 	returns.

139.21 	Sec. 90. [206.845] BALLOT RECORDING AND COUNTING
139.22 	SECURITY.
139.23 		Subdivision 1.Permitted and prohibited modes of
139.24 	transfer. Ballot recording and counting systems must be secured
139.25 	physically and electronically against unauthorized access.
139.26 	Except for wired connections within the polling place, ballot
139.27 	recording and counting systems must not be connected to, or
139.28 	operated on, directly or indirectly, any electronic network
139.29 	including internal office networks, LANs, the Internet, or the
139.30 	World Wide Web.  Wireless communications may not be used in any
139.31 	way in a vote recording or vote counting system.  Wireless,
139.32 	device-to-device capability is not allowed.  No connection by
139.33 	modem is allowed.
139.34 	Transfer of information from the ballot recording or
139.35 	counting system to another system for network or broadcast must
139.36 	be made by disk, tape, or other physical means of communication
140.1 	other than direct or indirect electronic connection of the vote
140.2 	recording or vote counting system.
140.3 		Subd. 2.Transmit to central reporting location. After
140.4 	the close of the polls, counties employing precinct ballot
140.5 	counting devices may telephonically or electronically transmit
140.6 	the accumulated tally for each device to a central reporting
140.7 	location.  The transmission must not be made using the precinct
140.8 	counting or recording device but must be made independently of
140.9 	that device.  Before making a telephonic or electronic
140.10 	transmission, the precinct election officer must create a
140.11 	printed record of the results of the election for that
140.12 	precinct.  During the canvassing period, the results transmitted
140.13 	telephonically or electronically must be considered unofficial
140.14 	until a complete reconciliation of the results has been
140.15 	performed.

140.16 	Sec. 91. Minnesota Statutes 2004, section 206.85,
140.17 	subdivision 1, is amended to read:
140.18 		Subdivision 1.Duties of responsible official.  The
140.19 	official in charge of elections in a municipality where an
140.20 	electronic voting system is used at a counting center must:
140.21 	(a) be present or personally represented throughout the
140.22 	counting center proceedings;
140.23 	(b) be responsible for acquiring sufficient facilities and
140.24 	personnel to ensure timely and lawful processing of votes;
140.25 	(c) be responsible for the proper training of all personnel
140.26 	participating in counting center proceedings and deputize all
140.27 	personnel who are not otherwise election judges;
140.28 	(d) maintain actual control over all proceedings and be
140.29 	responsible for the lawful execution of all proceedings in the
140.30 	counting center whether or not by experts;
140.31 	(e) be responsible for assuring the lawful retention and
140.32 	storage of ballots and read-outs; and
140.33 	(f) arrange for observation by the public and by
140.34 	candidates' representatives of counting center procedures by
140.35 	publishing the exact location of the counting center in a legal
140.36 	newspaper at least once during the week preceding the week of
141.1 	election and in the newspaper of widest circulation once on the
141.2 	day preceding the election, or once the week preceding the
141.3 	election if the newspaper is a weekly.
141.4 	The official may make arrangements with news reporters
141.5 	which permit prompt reporting of election results but which do
141.6 	not interfere with the timely and lawful completion of counting
141.7 	procedures.

141.8 	Sec. 92. Minnesota Statutes 2004, section 206.90,
141.9 	subdivision 1, is amended to read:
141.10 		Subdivision 1.Definition.  For the purposes of this
141.11 	section, "optical scan voting system" means an electronic voting
141.12 	system approved for use under sections 206.80 to 206.81 in which
141.13 	the voter records votes by marking with a pencil or other
141.14 	writing instrument device, including an electronic ballot
141.15 	marker,a ballot on which the names of candidates, office
141.16 	titles, party designation in a partisan primary or election, and
141.17 	a statement of any question accompanied by the words "Yes" and
141.18 	"No" are printed.

141.19 	Sec. 93. Minnesota Statutes 2004, section 206.90,
141.20 	subdivision 4, is amended to read:
141.21 		Subd. 4.Absentee voting.  An optical scan voting system
141.22 	may be used for absentee voting. The county auditor may supply
141.23 	an appropriate marking instrument to the voter along with the
141.24 	ballot.

141.25 	Sec. 94. Minnesota Statutes 2004, section 206.90,
141.26 	subdivision 5, is amended to read:
141.27 		Subd. 5.Instruction of judges, voters.  In instructing
141.28 	judges and voters under section 206.84, subdivision 1, officials
141.29 	in charge of election precincts using optical scan voting
141.30 	systems shall include instruction on the proper mark for
141.31 	recording votes on ballot cards marked with a pencil or other
141.32 	writing instrument and the insertion by the voter of the ballot
141.33 	card into automatic tabulating equipment that examines and
141.34 	counts votes as the ballot card is deposited into the ballot box.
141.35 	Officials shall include instruction on the insertion by the
141.36 	voter of the ballot card into an electronic ballot marker that
142.1 	can examine votes before the ballot card is deposited into the
142.2 	ballot box.

142.3 	Sec. 95. Minnesota Statutes 2004, section 206.90,
142.4 	subdivision 6, is amended to read:
142.5 		Subd. 6.Ballots.  In precincts using optical scan voting
142.6 	systems, a single ballot card on which all ballot information is
142.7 	included must be printed in black ink on white colored material
142.8 	except that marks not to be read by the automatic tabulating
142.9 	equipment may be printed in another color ink.
142.10 	On the front of the ballot must be printed the words
142.11 	"Official Ballot" and the date of the election and lines for the
142.12 	initials of at least two election judges.
142.13 	When optical scan ballots are used, the offices to be
142.14 	elected must appear in the following order:  federal offices;
142.15 	state legislative offices; constitutional offices; proposed
142.16 	constitutional amendments; county offices and questions;
142.17 	municipal offices and questions; school district offices and
142.18 	questions; special district offices and questions; and judicial
142.19 	offices.
142.20 	On optical scan ballots, the names of candidates and the
142.21 	words "yes" and "no" for ballot questions must be printed as
142.22 	close to their corresponding vote targets as possible.
142.23 	The line on an optical scan ballot for write-in votes must
142.24 	contain the words "write-in, if any."
142.25 	If a primary ballot contains both a partisan ballot and a
142.26 	nonpartisan ballot, the instructions to voters must include a
142.27 	statement that reads substantially as follows:  "THIS BALLOT
142.28 	CARD CONTAINS A PARTISAN BALLOT AND A NONPARTISAN BALLOT.  ON
142.29 	THE PARTISAN BALLOT YOU ARE PERMITTED TO VOTE FOR CANDIDATES OF
142.30 	ONE POLITICAL PARTY ONLY."  If a primary ballot contains
142.31 	political party columns on both sides of the ballot, the
142.32 	instructions to voters must include a statement that reads
142.33 	substantially as follows:  "ADDITIONAL POLITICAL PARTIES ARE
142.34 	PRINTED ON THE OTHER SIDE OF THIS BALLOT.  VOTE FOR ONE
142.35 	POLITICAL PARTY ONLY."  At the bottom of each political party
142.36 	column on the primary ballot, the ballot must contain a
143.1 	statement that reads substantially as follows:  "CONTINUE VOTING
143.2 	ON THE NONPARTISAN BALLOT."  The instructions in section
143.3 	204D.08, subdivision 4, do not apply to optical scan partisan
143.4 	primary ballots. Electronic ballot displays and audio ballot
143.5 	readers must follow the order of offices and questions on the
143.6 	optical scan or paper ballot used in the same precinct, or the
143.7 	sample ballot posted for that precinct.

143.8 	Sec. 96. Minnesota Statutes 2004, section 206.90,
143.9 	subdivision 8, is amended to read:
143.10 		Subd. 8.Duties of election officials.  The official in
143.11 	charge of elections in each municipality where an optical scan
143.12 	voting system is used shall have the electronic ballot marker
143.13 	that examines and marks votes on ballot cards or the machine
143.14 	that securely transmits a ballot to the optical scan machine in
143.15 	the precinct and the automatic tabulating equipment that
143.16 	examines and counts votes as ballot cards are deposited into
143.17 	ballot boxes put in order, set, adjusted, and made ready for
143.18 	voting when delivered to the election precincts.

143.19 	Sec. 97. Minnesota Statutes 2004, section 206.90,
143.20 	subdivision 9, is amended to read:
143.21 		Subd. 9.Spoiled ballot cards.  Automatic tabulating
143.22 	equipment and electronic ballot markers must be capable of
143.23 	examining a ballot card for defects and returning it to the
143.24 	voter before it is counted and deposited into the ballot box and 
143.25 	must be programmed to return as a spoiled ballot a ballot card
143.26 	with votes for an office or question which exceed the number
143.27 	which the voter is entitled to cast and at a primary a ballot
143.28 	card with votes for candidates of more than one party.

143.29 	Sec. 98. Minnesota Statutes 2004, section 208.03, is
143.30 	amended to read:
143.31 	208.03 NOMINATION OF PRESIDENTIAL ELECTORS.
143.32 	Presidential electors for the major political parties of
143.33 	this state shall be nominated by delegate conventions called and
143.34 	held under the supervision of the respective state central
143.35 	committees of the parties of this state.  On or before primary
143.36 	election day the chair of the major political party shall
144.1 	certify to the secretary of state the names of the persons
144.2 	nominated as presidential electors, the names of eight alternate
144.3 	presidential electors,and the names of the party candidates for
144.4 	president and vice-president.

144.5 	Sec. 99. Minnesota Statutes 2004, section 208.04,
144.6 	subdivision 1, is amended to read:
144.7 		Subdivision 1.Form of presidential ballots.  When
144.8 	presidential electors and alternates are to be voted for, a vote
144.9 	cast for the party candidates for president and vice-president
144.10 	shall be deemed a vote for that party's electors and alternates 
144.11 	as filed with the secretary of state.  The secretary of state
144.12 	shall certify the names of all duly nominated presidential and
144.13 	vice-presidential candidates to the county auditors of the
144.14 	counties of the state.  Each county auditor, subject to the
144.15 	rules of the secretary of state, shall cause the names of the
144.16 	candidates of each major political party and the candidates
144.17 	nominated by petition to be printed in capital letters, set in
144.18 	type of the same size and style as for candidates on the state
144.19 	white ballot, before the party designation.  To the left of, and
144.20 	on the same line with the names of the candidates for president
144.21 	and vice-president, near the margin, shall be placed a square or
144.22 	box, in which the voters may indicate their choice by marking an
144.23 	"X."
144.24 	The form for the presidential ballot and the relative
144.25 	position of the several candidates shall be determined by the
144.26 	rules applicable to other state officers.  The state ballot,
144.27 	with the required heading, shall be printed on the same piece of
144.28 	paper and shall be below the presidential ballot with a blank
144.29 	space between one inch in width.

144.30 	Sec. 100. Minnesota Statutes 2004, section 208.05, is
144.31 	amended to read:
144.32 	208.05 STATE CANVASSING BOARD.
144.33 	The State Canvassing Board at its meeting on the second
144.34 	Tuesday after each state general election shall open and canvass
144.35 	the returns made to the secretary of state for presidential
144.36 	electors and alternates, prepare a statement of the number of
145.1 	votes cast for the persons receiving votes for these offices,
145.2 	and declare the person or persons receiving the highest number
145.3 	of votes for each office duly elected.  When it appears that
145.4 	more than the number of persons to be elected as presidential
145.5 	electors or alternates have the highest and an equal number of
145.6 	votes, the secretary of state, in the presence of the board
145.7 	shall decide by lot which of the persons shall be declared
145.8 	elected.  The governor shall transmit to each person declared
145.9 	elected a certificate of election, signed by the governor,
145.10 	sealed with the state seal, and countersigned by the secretary
145.11 	of state.

145.12 	Sec. 101. Minnesota Statutes 2004, section 208.06, is
145.13 	amended to read:
145.14 	208.06 ELECTORS TO MEET AT CAPITOL; FILLING OF VACANCIES.
145.15 	The presidential electors and alternate presidential
145.16 	electors, before 12:00 M. on the day before that fixed by
145.17 	Congress for the electors to vote for president and
145.18 	vice-president of the United States, shall notify the governor
145.19 	that they are at the State Capitol and ready at the proper time
145.20 	to fulfill their duties as electors.  The governor shall deliver
145.21 	to the electors present a certificate of the names of all the
145.22 	electors.  If any elector named therein fails to appear before
145.23 	9:00 a.m. on the day, and at the place, fixed for voting for
145.24 	president and vice-president of the United States, an alternate,
145.25 	chosen from among the alternates by lot, shall be appointed to
145.26 	act for that elector.  If more than eight alternates are
145.27 	necessary,the electors present shall, in the presence of the
145.28 	governor, immediately elect by ballot a person to fill the
145.29 	vacancy.  If more than the number of persons required have the
145.30 	highest and an equal number of votes, the governor, in the
145.31 	presence of the electors attending, shall decide by lot which of
145.32 	those persons shall be elected.

145.33 	Sec. 102. Minnesota Statutes 2004, section 208.07, is
145.34 	amended to read:
145.35 	208.07 CERTIFICATE OF ELECTORS.
145.36 	Immediately after the vacancies have been filled, the
146.1 	original electors and alternates present shall certify to the
146.2 	governor the names of the persons elected to complete their
146.3 	number, and the governor shall at once cause written notice to
146.4 	be given to each person elected to fill a vacancy.  The persons
146.5 	so chosen shall be presidential electors and shall meet and act
146.6 	with the other electors.

146.7 	Sec. 103. Minnesota Statutes 2004, section 208.08, is
146.8 	amended to read:
146.9 	208.08 ELECTORS TO MEET AT STATE CAPITOL.
146.10 	The original, alternate,and substituted presidential
146.11 	electors, at 12:00 M., shall meet in the executive chamber at
146.12 	the State Capitol and shall perform all the duties imposed upon
146.13 	them as electors by the Constitution and laws of the United
146.14 	States and this state.
146.15 	Each elector, as a condition of having been chosen under
146.16 	the name of the party of a presidential and a vice-presidential
146.17 	candidate, is obligated to vote for those candidates.  The
146.18 	elector shall speak aloud or affirm in a nonverbal manner the
146.19 	name of the candidate for president and for vice-president for
146.20 	whom the elector is voting and then confirm that vote by written
146.21 	public ballot.
146.22 	If an elector fails to cast a ballot for the presidential
146.23 	or vice-presidential candidate of the party under whose name the
146.24 	elector was chosen, the elector's vote or abstention is
146.25 	invalidated and an alternate presidential elector, chosen by lot
146.26 	from among the alternates, shall cast a ballot in the name of
146.27 	the elector for the presidential and vice-presidential candidate
146.28 	of the party under whose name the elector was chosen.  The
146.29 	invalidation of an elector's vote or abstention on the ballot
146.30 	for president or vice-president does not apply if the
146.31 	presidential candidate under whose party's name the elector was
146.32 	chosen has without condition released the elector or has died or
146.33 	become mentally disabled.

146.34 	Sec. 104. Minnesota Statutes 2004, section 211B.01,
146.35 	subdivision 3, is amended to read:
146.36 		Subd. 3.Candidate.  "Candidate" means an individual who
147.1 	seeks nomination or election to a federal,statewide,
147.2 	legislative, judicial, or local office including special
147.3 	districts, school districts, towns, home rule charter and
147.4 	statutory cities, and counties, except candidates for president
147.5 	and vice-president of the United States.

147.6 	Sec. 105. Minnesota Statutes 2004, section 358.11, is
147.7 	amended to read:
147.8 	358.11 OATHS, WHERE FILED.
147.9 	Except as otherwise provided by law, the oath required to
147.10 	be taken and subscribed by any person shall be filed as follows:
147.11 	(1) if that of an officer of the state, whether elective or
147.12 	appointive, executive, legislative, or judicial,with the
147.13 	secretary of state;
147.14 	(2) if of a county officer, or an officer chosen within or
147.15 	for any county, with the county auditor;
147.16 	(3) if of a city officer, with the clerk or recorder of the
147.17 	municipality;
147.18 	(4) if of a town officer, with the town clerk;
147.19 	(5) if of a school district officer, with the clerk of the
147.20 	district;
147.21 	(6) if of a person appointed by, or made responsible to, a
147.22 	court in any action or proceeding therein, with the court
147.23 	administrator of such court;
147.24 	(7) if that of a person appointed by any state, county, or
147.25 	other officer for a special service in connection with official
147.26 	duties, with such officer.
147.27 	If the person taking such oath be also required to give
147.28 	bond, the oath shall be attached to or endorsed upon such bond
147.29 	and filed therewith, in lieu of other filing.

147.30 	Sec. 106. Minnesota Statutes 2004, section 447.32,
147.31 	subdivision 4, is amended to read:
147.32 		Subd. 4.Candidates; ballots; certifying election.  A
147.33 	person who wants to be a candidate for the hospital board shall
147.34 	file an affidavit of candidacy for the election either as member
147.35 	at large or as a member representing the city or town where the
147.36 	candidate resides.  The affidavit of candidacy must be filed
148.1 	with the city or town clerk not more than ten weeks 70 days nor
148.2 	less than eight weeks 56 days before the first Tuesday after the
148.3 	second first Monday in September November of the year in which
148.4 	the general election is held.  The city or town clerk must
148.5 	forward the affidavits of candidacy to the clerk of the hospital
148.6 	district or, for the first election, the clerk of the most
148.7 	populous city or town immediately after the last day of the
148.8 	filing period.  A candidate may withdraw from the election by
148.9 	filing an affidavit of withdrawal with the clerk of the district
148.10 	no later than 5:00 p.m. two days after the last day to file
148.11 	affidavits of candidacy.
148.12 	Voting must be by secret ballot.  The clerk shall prepare,
148.13 	at the expense of the district, necessary ballots for the
148.14 	election of officers.  Ballots must be printed on tan paper and
148.15 	prepared as provided in the rules of the secretary of state.
148.16 	The ballots must be marked and initialed by at least two judges
148.17 	as official ballots and used exclusively at the election.  Any
148.18 	proposition to be voted on may be printed on the ballot provided
148.19 	for the election of officers.  The hospital board may also
148.20 	authorize the use of voting systems subject to chapter 206.
148.21 	Enough election judges may be appointed to receive the votes at
148.22 	each polling place.  The election judges shall act as clerks of
148.23 	election, count the ballots cast, and submit them to the board
148.24 	for canvass.
148.25 	After canvassing the election, the board shall issue a
148.26 	certificate of election to the candidate who received the
148.27 	largest number of votes cast for each office.  The clerk shall
148.28 	deliver the certificate to the person entitled to it in person
148.29 	or by certified mail.  Each person certified shall file an
148.30 	acceptance and oath of office in writing with the clerk within
148.31 	30 days after the date of delivery or mailing of the
148.32 	certificate.  The board may fill any office as provided in
148.33 	subdivision 1 if the person elected fails to qualify within 30
148.34 	days, but qualification is effective if made before the board
148.35 	acts to fill the vacancy.

148.36 	Sec. 107. APPROPRIATIONS.
 149.1 		Subdivision 1.Assistive voting equipment; operating
149.2 	costs. (a) $25,000,000 is appropriated from the Help America
149.3 	Vote Act account to the secretary of state for grants to
149.4 	counties to purchase electronic voting systems equipped for
149.5 	individuals with disabilities that meet the requirements of
149.6 	section 301(a) of the Help America Vote Act, Public Law 107-252,
149.7 	and Minnesota Statutes, sections 206.80, and 206.57, subdivision
149.8 	5, and have been certified by the secretary of state under
149.9 	Minnesota Statutes, section 206.57.  The secretary of state
149.10 	shall make a grant to each county in the amount of $6,100 times
149.11 	the number of precincts in the county as certified by the
149.12 	county, which must not be more than the number of precincts used
149.13 	by the county in the state general election of 2004; plus $6,100
149.14 	to purchase an electronic voting system to be used by the county
149.15 	auditor for absentee and mail balloting, until the $25,000,000
149.16 	is exhausted.  These funds may be used either for the purchase
149.17 	of ballot marking equipment for persons with disabilities and
149.18 	other voters, or assistive voting machines that combine voting
149.19 	methods used for persons with disabilities with precinct-based
149.20 	optical scan voting machines.  Any unused funds must be set
149.21 	aside in a segregated account for future purchases of voting
149.22 	equipment complying with the Help America Vote Act and Minnesota
149.23 	law.
149.24 	(b)(1) For the purposes of this paragraph, "operating
149.25 	costs" include actual county and municipal costs for hardware
149.26 	maintenance, election day technical support, software licensing,
149.27 	system programming, voting system testing, training of county or
149.28 	municipal staff in the use of the assistive voting system,
149.29 	transportation of the assistive voting systems to and from the
149.30 	polling places, and storage of the assistive voting systems
149.31 	between elections.
149.32 	(2) $2,500,000 is appropriated to the secretary of state
149.33 	for grants to counties to defray the operating costs of the
149.34 	assistive voting equipment.  Each county may submit a request
149.35 	for no more than $600 per polling place per year until the
149.36 	appropriation is exhausted.
150.1 		Subd. 2.Optic scan equipment. $6,000,000 is
150.2 	appropriated from the Help America Vote Act account to the
150.3 	secretary of state for grants to counties to purchase optical
150.4 	scan voting equipment.  Counties are eligible for these funds to
150.5 	the extent that they decide to purchase ballot marking machines
150.6 	and as a result do not have sufficient federal funds remaining
150.7 	to also purchase a compatible precinct-based optical scan
150.8 	machine or central count machine.  These grants will be
150.9 	allocated to counties at a rate of $3,000 per eligible precinct
150.10 	until the appropriation is exhausted with priority in the
150.11 	payment of grants to be given to counties currently using hand
150.12 	and central count voting systems and counties using
150.13 	precinct-count optical scan voting systems incompatible with
150.14 	assistive voting systems or ballot marking machines.
150.15 		Subd. 3.Secretary of state election
150.16 	administration. $5,000,000 is appropriated from the Help
150.17 	America Vote Act account to the secretary of state for further
150.18 	development of the statewide voter registration system and for
150.19 	training of local election officials, education of the public,
150.20 	and other election administration improvements permitted by the
150.21 	Help America Vote Act.
150.22 		Subd. 4.Surplus voting equipment to be made
150.23 	available. (a) If any county or municipality purchases or
150.24 	receives new voting system equipment under this section, it must
150.25 	make the equipment being replaced, if any, available on a
150.26 	first-come, first-served basis at no charge for transfer to any
150.27 	other county or municipality which has not previously used that
150.28 	type or model of equipment.  A county receiving equipment under
150.29 	this subdivision must also make any equipment being replaced
150.30 	similarly available to any other county or municipality.
150.31 	(b) The secretary of state shall establish, for information
150.32 	only, a page on its Web site on which counties making equipment
150.33 	available pursuant to this subdivision must post the basic
150.34 	specifications of the equipment along with contact information
150.35 	for the staff person in the county or municipality responsible
150.36 	for the equipment.  All transfer transactions are strictly
151.1 	between and among the counties and municipalities.
151.2 	
EFFECTIVE DATE. This section is effective the day
151.3 	following final enactment.

151.4 	Sec. 108. FEDERAL FUNDS FOR ACCESS BY DISABLED
151.5 	INDIVIDUALS.
 151.6 	The secretary of state is authorized to apply for funds
151.7 	pursuant to sections 261 to 265 of the Help America Vote Act,
151.8 	Public Law 107-252, to ensure access for individuals with
151.9 	disabilities.  No further appropriation by the legislature is
151.10 	required for the receipt of those funds from the federal
151.11 	Department of Health and Human Services or for the distribution
151.12 	to local units of government of those funds by the secretary of
151.13 	state for that purpose, notwithstanding contrary provisions in
151.14 	Laws 2003, First Special Session chapter 7, section 1.

151.15 	Sec. 109. LOCAL EQUIPMENT PLANS.
 151.16 	(a) The county auditor shall convene a working group of all
151.17 	city and town election officials in each county to create a
151.18 	local equipment plan.  The working group must continue to meet
151.19 	until the plan is completed, which must be no later than
151.20 	September 15, 2005; or 45 days after state certification of
151.21 	assistive voting systems, whichever is later.  The plan must:
151.22 	(1) contain procedures to implement voting systems as
151.23 	defined in Minnesota Statutes, section 206.80 in each polling
151.24 	location;
151.25 	(2) define who is responsible for any capital or operating
151.26 	costs related to election equipment not covered by federal money
151.27 	from the Help America Vote Act account; and 
151.28 	(3) outline how the federal money from the Help America
151.29 	Vote Act account will be spent.
151.30 	(b) A county plan must provide funding to purchase either
151.31 	precinct-based optical scan voting equipment, or assistive
151.32 	voting machines that combine voting methods used for persons
151.33 	with disabilities with precinct-based optical scan voting
151.34 	machines for any precinct whose city or town requests it, if the
151.35 	requesting city or town agrees with the county on who will be
151.36 	responsible for operating and replacement costs related to the
152.1 	use of the precinct-based equipment.
152.2 	(c) The plan must be submitted to the secretary of state
152.3 	for review and comment.  The county board of commissioners must
152.4 	adopt the local equipment plan after a public hearing.  Money
152.5 	from the Help America Vote Act account may not be expended until
152.6 	the plan is adopted.  The county auditor shall file the adopted
152.7 	local equipment plan with the secretary of state.
152.8 	(d) To receive a grant under this section, the county must
152.9 	apply to the secretary of state on forms prescribed by the
152.10 	secretary of state and must set forth how the grant money will
152.11 	be spent pursuant to the plan.  A county may submit more than
152.12 	one grant application, so long as the appropriation remains
152.13 	available and the total amount granted to the county does not
152.14 	exceed the county's allocation.

152.15 	EFFECTIVE DATE. This section is effective the day
152.16 	following final enactment.

152.17 	Sec. 110. REPORT.
 152.18 	Each county receiving a grant under this article must
152.19 	report to the secretary of state by March 15, 2006, the amount
152.20 	spent for the purchase of each kind of electronic voting system
152.21 	and for operating costs of the systems purchased.  The secretary
152.22 	of state shall compile this information and report it to the
152.23 	legislature by April 15, 2006.

152.24 	Sec. 111. RANDOM AUDITS.
 152.25 	Notwithstanding Minnesota Statutes, section 10A.02,
152.26 	subdivision 9, the Campaign Finance and Public Disclosure Board
152.27 	must perform only random inspections of material filed with the
152.28 	board during the biennium ending June 30, 2007.

152.29 	Sec. 112. REPEALER.
 152.30 	Minnesota Statutes 2004, sections 204B.22, subdivision 2;
152.31 	and 204C.50, subdivision 7, are repealed.
152.32 	Minnesota Rules, parts 4501.0300, subparts 1 and 4;
152.33 	4501.0500, subpart 4; 4501.0600; 4503.0200, subpart 4;
152.34 	4503.0300, subpart 2; 4503.0400, subpart 2; 4503.0500, subpart
152.35 	9; and 4503.0800, subpart 1, are repealed.

152.36 	ARTICLE 10
153.1 	PERIODIC STATE AND LOCAL ELECTION DATES

153.2 	Section 1. [204D.035] PERIODIC ELECTION DAY.
153.3 		Subdivision 1.Short title. This section may be referred
153.4 	to as the "Periodic Election Day Act of 2005." 
153.5 		Subd. 2.Elections covered. This section applies to all
153.6 	state, county, municipal, school district, and any other
153.7 	political subdivision elections held in the state of Minnesota,
153.8 	and elections on ballot questions, except for (1) elections held
153.9 	to fill a vacancy in office and required by statute to be held
153.10 	sooner than the next day designated in subdivision 3, or (2)
153.11 	elections conducted by mail.
153.12 		Subd. 3.Elections on designated days. (a)
153.13 	Notwithstanding other law to the contrary, elections subject to
153.14 	subdivision 2 may be held only on the following days:
153.15 	(1) the fourth Tuesday in January;
153.16 	(2) the second Tuesday in March;
153.17 	(3) the third Tuesday in May;
153.18 	(4) the first Tuesday after the second Monday in September;
153.19 	and 
153.20 	(5) the first Tuesday after the first Monday in November.
153.21 	(b) The time period in which a special election must be
153.22 	conducted under any other law or charter provision must be
153.23 	extended to conform to the requirements of this subdivision.
153.24 		Subd. 4.Primary date if not specified. If other law
153.25 	provides for a primary to take place for a particular office but
153.26 	does not specify the date of the primary, the primary may be
153.27 	held on one of the days specified in subdivision 3, paragraph
153.28 	(a), clauses (1) to (4).  The general election for the office
153.29 	must be held on the date listed in subdivision 3 that
153.30 	immediately follows the date chosen for the primary.
153.31 		Subd. 5.Election times and polling places. An election
153.32 	held in a jurisdiction on one of the days specified in
153.33 	subdivision 3 must be held during the hours determined under
153.34 	section 204C.05.  The governing body of the municipality must
153.35 	set the polling place locations to be used for each precinct in
153.36 	all elections in any calendar year before the start of that
154.1 	calendar year.
154.2 		Subd. 6.Applicable laws. Except as otherwise provided
154.3 	by this section, Minnesota election law remains applicable to
154.4 	elections held on any of the days listed in subdivision 3.

154.5 	Sec. 2. EFFECTIVE DATE.
 154.6 	This article is effective January 1, 2006.

154.7 	ARTICLE 11
154.8 	CONFORMING AMENDMENTS

154.9 	Section 1. Minnesota Statutes 2004, section 123B.63,
154.10 	subdivision 3, is amended to read:
154.11 		Subd. 3.Capital project levy referendum.  A district may
154.12 	levy the local tax rate approved by a majority of the electors
154.13 	voting on the question to provide funds for an approved
154.14 	project.  The election must take place no more than five years
154.15 	before the estimated date of commencement of the project.  The
154.16 	referendum must be held on a date set by the board specified in
154.17 	section 204D.035, subdivision 3.  A referendum for a project not
154.18 	receiving a positive review and comment by the commissioner
154.19 	under section 123B.71 must be approved by at least 60 percent of
154.20 	the voters at the election.  The referendum may be called by the
154.21 	school board and may be held:
154.22 	(1) separately, before an election for the issuance of
154.23 	obligations for the project under chapter 475; or
154.24 	(2) in conjunction with an election for the issuance of
154.25 	obligations for the project under chapter 475; or
154.26 	(3) notwithstanding section 475.59, as a conjunctive
154.27 	question authorizing both the capital project levy and the
154.28 	issuance of obligations for the project under chapter 475.  Any
154.29 	obligations authorized for a project may be issued within five
154.30 	years of the date of the election.
154.31 	The ballot must provide a general description of the
154.32 	proposed project, state the estimated total cost of the project,
154.33 	state whether the project has received a positive or negative
154.34 	review and comment from the commissioner, state the maximum
154.35 	amount of the capital project levy as a percentage of net tax
154.36 	capacity, state the amount that will be raised by that local tax
155.1 	rate in the first year it is to be levied, and state the maximum
155.2 	number of years that the levy authorization will apply.
155.3 	The ballot must contain a textual portion with the
155.4 	information required in this section and a question stating
155.5 	substantially the following:
155.6 	"Shall the capital project levy proposed by the board of
155.7 	.......... School District No. .......... be approved?"
155.8 	If approved, the amount provided by the approved local tax
155.9 	rate applied to the net tax capacity for the year preceding the
155.10 	year the levy is certified may be certified for the number of
155.11 	years approved.
155.12 	In the event a conjunctive question proposes to authorize
155.13 	both the capital project levy and the issuance of obligations
155.14 	for the project, appropriate language authorizing the issuance
155.15 	of obligations must also be included in the question.
155.16 	The district must notify the commissioner of the results of
155.17 	the referendum.

155.18 	Sec. 2. Minnesota Statutes 2004, section 126C.17,
155.19 	subdivision 11, is amended to read:
155.20 		Subd. 11.Referendum date.  (a) Except for a referendum
155.21 	held under paragraph (b), any referendum under this section held
155.22 	on a day other than the first Tuesday after the first Monday in
155.23 	November must be conducted by mail in accordance with section
155.24 	204B.46.  Notwithstanding subdivision 9, paragraph (b), to the
155.25 	contrary, in the case of a referendum conducted by mail under
155.26 	this paragraph, the notice required by subdivision 9, paragraph
155.27 	(b), must be prepared and delivered by first-class mail at least
155.28 	20 days before the referendum.
155.29 	(b) In addition to the referenda allowed in subdivision 9,
155.30 	clause (a), the commissioner may grant authority to a district
155.31 	to hold a referendum on a different day if the district is in
155.32 	statutory operating debt and has an approved plan or has
155.33 	received an extension from the department to file a plan to
155.34 	eliminate the statutory operating debt. A referendum must be
155.35 	held on a date specified in section 204D.035, subdivision 3.
155.36 	(c) The commissioner must approve, deny, or modify each
156.1 	district's request for a referendum levy on a different day
156.2 	within 60 days of receiving the request from a district.

156.3 	Sec. 3. Minnesota Statutes 2004, section 204C.05, is
156.4 	amended by adding a subdivision to read:
156.5 		Subd. 1c.Elections; municipalities and school
156.6 	districts. The governing body of a municipality or school
156.7 	district may, by resolution, designate the hours during which
156.8 	the polling places will remain open for voting at the next
156.9 	succeeding and all later municipal or school district elections
156.10 	that are not held at the same time as the state primary or state
156.11 	general election.  All polling places must be open at least
156.12 	between the hours of 10:00 a.m. and 8:00 p.m.  The resolution
156.13 	remains in effect until revoked by the governing board or until
156.14 	a petition from voters is filed under this subdivision.  If a
156.15 	petition requesting longer voting hours for any election is
156.16 	signed by a number of voters equal to ten percent of the votes
156.17 	cast in the last municipal or school district general election,
156.18 	whichever applies, and filed with the appropriate municipal or
156.19 	school district clerk no later than 30 days before an election,
156.20 	the polling places for that election must open at 7:00 a.m. and
156.21 	close at 8:00 p.m.  The municipal or school district clerk must
156.22 	give ten days published and posted notice of the change in hours
156.23 	and notify the appropriate county auditors of the change.

156.24 	Sec. 4. Minnesota Statutes 2004, section 205.10,
156.25 	subdivision 3, is amended to read:
156.26 		Subd. 3.Prohibition. No A special election authorized
156.27 	under subdivision 1 may be held within 40 days after the state
156.28 	general election only on one of the dates specified in section
156.29 	204D.035, subdivision 3.

156.30 	Sec. 5. [205.176] VOTING HOURS.
156.31 	In all municipal elections the hours for voting must be
156.32 	determined as provided in section 204C.05 except for an election
156.33 	at which only township offices are to be elected.

156.34 	Sec. 6. Minnesota Statutes 2004, section 205A.05,
156.35 	subdivision 1, is amended to read:
156.36 		Subdivision 1.Questions.  Special elections must be held
157.1 	for a school district on a question on which the voters are
157.2 	authorized by law to pass judgment.  The school board may on its
157.3 	own motion call a special election to vote on any matter
157.4 	requiring approval of the voters of a district.  Upon petition
157.5 	of 50 or more voters of the school district or five percent of
157.6 	the number of voters voting at the preceding regular school
157.7 	district election, the school board shall by resolution call a
157.8 	special election to vote on any matter requiring approval of the
157.9 	voters of a district.  A question is carried only with the
157.10 	majority in its favor required by law.  The election officials
157.11 	for a special election are the same as for the most recent
157.12 	school district general election unless changed according to
157.13 	law.  Otherwise, special elections must be conducted and the
157.14 	returns made in the manner provided for the school district
157.15 	general election. A special election may not be held during the
157.16 	30 days before and the 30 days after the state primary, during
157.17 	the 30 days before and the 40 days after the state general
157.18 	election.  In addition, a special election may not be held
157.19 	during the 20 days before and the 20 days after any regularly
157.20 	scheduled election of a municipality wholly or partially within
157.21 	the school district.A special election under this subdivision
157.22 	must be held only on one of the dates specified in section
157.23 	204D.035, subdivision 3.Notwithstanding any other law to the
157.24 	contrary, the time period in which a special election must be
157.25 	conducted under any other law may be extended by the school
157.26 	board to conform with the requirements of this subdivision.

157.27 	Sec. 7. [205A.095] HOURS FOR VOTING.
157.28 	The hours for voting in school district elections must be
157.29 	determined as provided in section 204C.05.

157.30 	Sec. 8. Minnesota Statutes 2004, section 373.40,
157.31 	subdivision 2, is amended to read:
157.32 		Subd. 2.Application of election requirement.  (a) Bonds
157.33 	issued by a county to finance capital improvements under an
157.34 	approved capital improvement plan are not subject to the
157.35 	election requirements of section 375.18 or 475.58.  The bonds
157.36 	must be approved by vote of at least three-fifths of the members
158.1 	of the county board.  In the case of a metropolitan county, the
158.2 	bonds must be approved by vote of at least two-thirds of the
158.3 	members of the county board.
158.4 	(b) Before issuance of bonds qualifying under this section,
158.5 	the county must publish a notice of its intention to issue the
158.6 	bonds and the date and time of a hearing to obtain public
158.7 	comment on the matter.  The notice must be published in the
158.8 	official newspaper of the county or in a newspaper of general
158.9 	circulation in the county.  The notice must be published at
158.10 	least 14, but not more than 28, days before the date of the
158.11 	hearing.
158.12 	(c) A county may issue the bonds only upon obtaining the
158.13 	approval of a majority of the voters voting on the question of
158.14 	issuing the obligations, if a petition requesting a vote on the
158.15 	issuance is signed by voters equal to five percent of the votes
158.16 	cast in the county in the last general election and is filed
158.17 	with the county auditor within 30 days after the public
158.18 	hearing.  The commissioner of revenue shall prepare a suggested
158.19 	form of the question to be presented at the election. The
158.20 	election may be held only on one of the dates specified in
158.21 	section 204D.035, subdivision 3.

158.22 	Sec. 9. Minnesota Statutes 2004, section 375.20, is
158.23 	amended to read:
158.24 	375.20 BALLOT QUESTIONS.
158.25 	If the county board may do an act, incur a debt,
158.26 	appropriate money for a purpose, or exercise any other power or
158.27 	authority, only if authorized by a vote of the people, the
158.28 	question may be submitted at a special or general election, by a
158.29 	resolution specifying the matter or question to be voted upon.
158.30 	If the question is to authorize the appropriation of money,
158.31 	creation of a debt, or levy of a tax, it shall state the
158.32 	amount.  Notice of the election shall be given as in the case of
158.33 	special elections.  If the question submitted is adopted, the
158.34 	board shall pass an appropriate resolution to carry it into
158.35 	effect.  In the election the form of the ballot shall be:  "In
158.36 	favor of (here state the substance of the resolution to be
159.1 	submitted), Yes ......  No......," with a square opposite each
159.2 	of the words "yes" and "no," in one of which the voter shall
159.3 	mark an "X" to indicate a choice.  The county board may call a
159.4 	special county election upon a question to be held within 60
159.5 	days on any date specified in section 204D.035, subdivision 3,
159.6 	after a resolution to that effect is adopted by the county
159.7 	board.  Upon the adoption of the resolution the county auditor
159.8 	shall post and publish notices of the election, as required by
159.9 	section 204D.22, subdivisions 2 and 3.  The election shall be
159.10 	conducted and the returns canvassed in the manner prescribed by
159.11 	sections 204D.20 to 204D.27, so far as practicable.

159.12 	Sec. 10. Minnesota Statutes 2004, section 458.40, is
159.13 	amended to read:
159.14 	458.40 MUST VOTE TO ISSUE BONDS IF CHARTER SAYS SO.
159.15 	If a charter adopted under the Minnesota Constitution,
159.16 	article IV, section 36, article XI, section 4, or article XII,
159.17 	section 5, has a provision that requires the question of the
159.18 	issuance of bonds to be submitted to the electors, the provision
159.19 	prevails over sections 458.36 to 458.40. The question must be
159.20 	submitted to voters on one of the dates specified in section
159.21 	204D.035, subdivision 3, notwithstanding any contrary provision
159.22 	in the charter regarding the date of submission.

159.23 	Sec. 11. Minnesota Statutes 2004, section 465.82,
159.24 	subdivision 2, is amended to read:
159.25 		Subd. 2.Contents of plan.  The plan must state:
159.26 	(1) the specific cooperative activities the units will
159.27 	engage in during the first two years of the venture;
159.28 	(2) the steps to be taken to effect the merger of the
159.29 	governmental units, with completion no later than four years
159.30 	after the process begins;
159.31 	(3) the steps by which a single governing body will be
159.32 	created or, when the entire territory of a unit will be
159.33 	apportioned between or among two or more units contiguous to the
159.34 	unit that is to be apportioned, the steps to be taken by the
159.35 	governing bodies of the remaining units to provide for
159.36 	representation of the residents of the apportioned unit;
160.1 	(4) changes in services provided, facilities used, and
160.2 	administrative operations and staffing required to effect the
160.3 	preliminary cooperative activities and the final merger, and a
160.4 	two-, five-, and ten-year projection of expenditures for each
160.5 	unit if it combined and if it remained separate;
160.6 	(5) treatment of employees of the merging governmental
160.7 	units, specifically including provisions for reassigning
160.8 	employees, dealing with exclusive representatives, and providing
160.9 	financial incentives to encourage early retirements;
160.10 	(6) financial arrangements for the merger, specifically
160.11 	including responsibility for debt service on outstanding
160.12 	obligations of the merging units;
160.13 	(7) one- and two-year impact analyses, prepared by the
160.14 	granting state agency at the request of the local government
160.15 	unit, of major state aid revenues received for each unit if it
160.16 	combined and if it remained separate, including an impact
160.17 	analysis, prepared by the Department of Revenue, of any property
160.18 	tax revenue implications associated with tax increment financing
160.19 	districts and fiscal disparities under chapter 276A or 473F
160.20 	resulting from the merger;
160.21 	(8) procedures for a referendum to be held on a date
160.22 	specified in section 204D.035, subdivision 3,before the
160.23 	proposed combination to approve combining the local government
160.24 	units, specifically stating whether a majority of those voting
160.25 	in each district proposed for combination or a majority of those
160.26 	voting on the question in the entire area proposed for
160.27 	combination is needed to pass the referendum; and
160.28 	(9) a time schedule for implementation.
160.29 	Notwithstanding clause (3) or any other law to the
160.30 	contrary, all current members of the governing bodies of the
160.31 	local government units that propose to combine under sections
160.32 	465.81 to 465.86 may serve on the initial governing body of the
160.33 	combined unit until a gradual reduction in membership is
160.34 	achieved by foregoing election of new members when terms expire
160.35 	until the number permitted by other law is reached.

160.36 	Sec. 12. Minnesota Statutes 2004, section 465.84, is
161.1 	amended to read:
161.2 	465.84 REFERENDUM.
161.3 	During the first or second year of cooperation, a
161.4 	referendum on the question of combination must be conducted.
161.5 	The referendum must be on a date specified in section 204D.035,
161.6 	subdivision 3, and called by the governing bodies of the units
161.7 	that propose to combine.  The referendum must be conducted
161.8 	according to the Minnesota Election Law, as defined in section
161.9 	200.01.  If the referendum fails, the same question or a
161.10 	modified question may be submitted the following year.  If the
161.11 	referendum fails again, the same question may not be submitted.
161.12 	Referendums shall be conducted on the same date in all local
161.13 	government units.

161.14 	Sec. 13. Minnesota Statutes 2004, section 469.053,
161.15 	subdivision 5, is amended to read:
161.16 		Subd. 5.Reverse referendum.  A city may increase its
161.17 	levy for port authority purposes under subdivision 4 only as
161.18 	provided in this subdivision.  Its city council must first pass
161.19 	a resolution stating the proposed amount of levy increase.  The
161.20 	city must then publish the resolution together with a notice of
161.21 	public hearing on the resolution for two successive weeks in its
161.22 	official newspaper or, if none exists, in a newspaper of general
161.23 	circulation in the city.  The hearing must be held two to four
161.24 	weeks after the first publication.  After the hearing, the city
161.25 	council may decide to take no action or may adopt a resolution
161.26 	authorizing the proposed increase or a lesser increase.  A
161.27 	resolution authorizing an increase must be published in the
161.28 	city's official newspaper or, if none exists, in a newspaper of
161.29 	general circulation in the city.  The resolution is not
161.30 	effective if a petition requesting a referendum on the
161.31 	resolution is filed with the city clerk within 30 days of
161.32 	publication of the resolution.  The petition must be signed by
161.33 	voters equaling five percent of the votes cast in the city in
161.34 	the last general election.  The resolution is effective if
161.35 	approved by a majority of those voting on the question.  The
161.36 	commissioner of revenue shall prepare a suggested form of
162.1 	referendum question.  The referendum must be held at a special
162.2 	or general election before October 1 on a date specified in
162.3 	section 204D.035, subdivision 3,of the year for which the levy
162.4 	increase is proposed.

162.5 	Sec. 14. Minnesota Statutes 2004, section 469.0724, is
162.6 	amended to read:
162.7 	469.0724 GENERAL OBLIGATION BONDS.
162.8 	The port authority of Cannon Falls or Redwood Falls must
162.9 	not proceed with the sale of general obligation tax supported
162.10 	bonds until the city council by resolution approves the proposed
162.11 	issuance.  The resolution must be published in the official
162.12 	newspaper.  If, within 30 days after the publication, a petition
162.13 	signed by voters equal in number to ten percent of the number of
162.14 	voters at the last regular city election is filed with the city
162.15 	clerk, the city and port authority must not issue the general
162.16 	obligation tax supported bonds until the proposition has been
162.17 	approved by a majority of the votes cast on the question at a
162.18 	regular or special election held on one of the dates specified
162.19 	in section 204D.035, subdivision 3.

162.20 	Sec. 15. Minnesota Statutes 2004, section 469.190,
162.21 	subdivision 5, is amended to read:
162.22 		Subd. 5.Reverse referendum.  If the county board passes
162.23 	a resolution under subdivision 4 to impose the tax, the
162.24 	resolution must be published for two successive weeks in a
162.25 	newspaper of general circulation within the unorganized
162.26 	territory, together with a notice fixing a date for a public
162.27 	hearing on the proposed tax.
162.28 	The hearing must be held not less than two weeks nor more
162.29 	than four weeks after the first publication of the notice.
162.30 	After the public hearing, the county board may determine to take
162.31 	no further action, or may adopt a resolution authorizing the tax
162.32 	as originally proposed or approving a lesser rate of tax.  The
162.33 	resolution must be published in a newspaper of general
162.34 	circulation within the unorganized territory.  The voters of the
162.35 	unorganized territory may request a referendum on the proposed
162.36 	tax by filing a petition with the county auditor within 30 days
163.1 	after the resolution is published.  The petition must be signed
163.2 	by voters who reside in the unorganized territory.  The number
163.3 	of signatures must equal at least five percent of the number of
163.4 	persons voting in the unorganized territory in the last general
163.5 	election.  If such a petition is timely filed, the resolution is
163.6 	not effective until it has been submitted to the voters residing
163.7 	in the unorganized territory at a general or special election
163.8 	held on one of the dates specified in section 204D.035,
163.9 	subdivision 3,and a majority of votes cast on the question of
163.10 	approving the resolution are in the affirmative.  The
163.11 	commissioner of revenue shall prepare a suggested form of
163.12 	question to be presented at the referendum.

163.13 	Sec. 16. Minnesota Statutes 2004, section 475.521,
163.14 	subdivision 2, is amended to read:
163.15 		Subd. 2.Election requirement.  (a) Bonds issued by a
163.16 	city to finance capital improvements under an approved capital
163.17 	improvements plan are not subject to the election requirements
163.18 	of section 475.58.  The bonds are subject to the net debt limits
163.19 	under section 475.53.  The bonds must be approved by an
163.20 	affirmative vote of three-fifths of the members of a five-member
163.21 	city council.  In the case of a city council having more than
163.22 	five members, the bonds must be approved by a vote of at least
163.23 	two-thirds of the city council.
163.24 	(b) Before the issuance of bonds qualifying under this
163.25 	section, the city must publish a notice of its intention to
163.26 	issue the bonds and the date and time of the hearing to obtain
163.27 	public comment on the matter.  The notice must be published in
163.28 	the official newspaper of the city or in a newspaper of general
163.29 	circulation in the city.  Additionally, the notice may be posted
163.30 	on the official Web site, if any, of the city.  The notice must
163.31 	be published at least 14 but not more than 28 days before the
163.32 	date of the hearing.
163.33 	(c) A city may issue the bonds only after obtaining the
163.34 	approval of a majority of the voters voting on the question of
163.35 	issuing the obligations, if a petition requesting a vote on the
163.36 	issuance is signed by voters equal to five percent of the votes
164.1 	cast in the city in the last general election and is filed with
164.2 	the city clerk within 30 days after the public hearing.  The
164.3 	commissioner of revenue shall prepare a suggested form of the
164.4 	question to be presented at the election. The election must be
164.5 	held on one of the dates specified in section 204D.035,
164.6 	subdivision 3.

164.7 	Sec. 17. Minnesota Statutes 2004, section 475.58,
164.8 	subdivision 1, is amended to read:
164.9 		Subdivision 1.Approval by electors; exceptions.
 164.10 	Obligations authorized by law or charter may be issued by any
164.11 	municipality upon obtaining the approval of a majority of the
164.12 	electors voting at a special or general election held on one of
164.13 	the dates specified in section 204D.035, subdivision 3,on the
164.14 	question of issuing the obligations, but an election shall not
164.15 	be required to authorize obligations issued:
164.16 	(1) to pay any unpaid judgment against the municipality;
164.17 	(2) for refunding obligations;
164.18 	(3) for an improvement or improvement program, which
164.19 	obligation is payable wholly or partly from the proceeds of
164.20 	special assessments levied upon property specially benefited by
164.21 	the improvement or by an improvement within the improvement
164.22 	program, or of taxes levied upon the increased value of property
164.23 	within a district for the development of which the improvement
164.24 	is undertaken, including obligations which are the general
164.25 	obligations of the municipality, if the municipality is entitled
164.26 	to reimbursement in whole or in part from the proceeds of such
164.27 	special assessments or taxes and not less than 20 percent of the
164.28 	cost of the improvement or the improvement program is to be
164.29 	assessed against benefited property or is to be paid from the
164.30 	proceeds of federal grant funds or a combination thereof, or is
164.31 	estimated to be received from such taxes within the district;
164.32 	(4) payable wholly from the income of revenue producing
164.33 	conveniences;
164.34 	(5) under the provisions of a home rule charter which
164.35 	permits the issuance of obligations of the municipality without
164.36 	election;
165.1 	(6) under the provisions of a law which permits the
165.2 	issuance of obligations of a municipality without an election;
165.3 	(7) to fund pension or retirement fund liabilities pursuant
165.4 	to section 475.52, subdivision 6;
165.5 	(8) under a capital improvement plan under section 373.40;
165.6 	and
165.7 	(9) under sections 469.1813 to 469.1815 (property tax
165.8 	abatement authority bonds), if the proceeds of the bonds are not
165.9 	used for a purpose prohibited under section 469.176, subdivision
165.10 	4g, paragraph (b).

165.11 	Sec. 18. Minnesota Statutes 2004, section 475.58,
165.12 	subdivision 1a, is amended to read:
165.13 		Subd. 1a.Resubmission limitation.  If the electors do
165.14 	not approve the issuing of obligations at an election required
165.15 	by subdivision 1, the question of authorizing the obligations
165.16 	for the same purpose and in the same amount may not be submitted
165.17 	to the electors within a period of until a special or general
165.18 	election held on a date specified in section 204D.035,
165.19 	subdivision 3, and not sooner than 180 days from the date the
165.20 	election was held.  If the question of authorizing the
165.21 	obligations for the same purpose and in the same amount is not
165.22 	approved a second time it may not be submitted to the electors
165.23 	within a period of one year after the second election.

165.24 	Sec. 19. Minnesota Statutes 2004, section 475.59, is
165.25 	amended to read:
165.26 	475.59 MANNER OF SUBMISSION; NOTICE.
165.27 	When the governing body of a municipality resolves to issue
165.28 	bonds for any purpose requiring the approval of the electors, it
165.29 	shall provide for submission of the proposition of their
165.30 	issuance at a general or special election held on a date
165.31 	specified in section 204D.035, subdivision 3,or at a town or
165.32 	common school district meeting.  Notice of such election or
165.33 	meeting shall be given in the manner required by law and shall
165.34 	state the maximum amount and the purpose of the proposed issue.
165.35 	In any school district, the school board or board of education
165.36 	may, according to its judgment and discretion, submit as a
166.1 	single ballot question or as two or more separate questions in
166.2 	the notice of election and ballots the proposition of their
166.3 	issuance for any one or more of the following, stated
166.4 	conjunctively or in the alternative:  acquisition or enlargement
166.5 	of sites, acquisition, betterment, erection, furnishing,
166.6 	equipping of one or more new schoolhouses, remodeling,
166.7 	repairing, improving, adding to, betterment, furnishing,
166.8 	equipping of one or more existing schoolhouses.  In any city,
166.9 	town, or county, the governing body may, according to its
166.10 	judgment and discretion, submit as a single ballot question or
166.11 	as two or more separate questions in the notice of election and
166.12 	ballots the proposition of their issuance, stated conjunctively
166.13 	or in the alternative, for the acquisition, construction, or
166.14 	improvement of any facilities at one or more locations.

166.15 	Sec. 20. REPEALER.
 166.16 	Minnesota Statutes 2004, sections 204C.05, subdivisions 1a
166.17 	and 1b; 205.175; and 205A.09, are repealed.

166.18 	Sec. 21. EFFECTIVE DATE.
 166.19 	This article is effective January 1, 2006.  Section 17 is
166.20 	effective for obligations authorized at an election held after
166.21 	January 1, 2006.